ACFR FY 2009-2010C
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CITY OF POWAY
CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2010
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City of Poway
Poway, California
Comprehensive Annual Financial Report
For the year ended June 30, 2010
PREPARED BY THE CITY OF POWAY, CALIFORNIA
FINANCE DIVISION
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City of Poway
Basic Financial Statements
For the year ended June 30, 2010
Table of Contents
Page
INTRODUCTORY SECTION
Tableof Contents ......................................................................................................................... ..............................1
Letterof Transmittal ................................................................................................................. ............................... v
PrincipalOfficials ................................................................................................................... ............................... xvi
OrganizationalChart ............................................................................................................ ............................... xvii
GFOA Certificate of Achievement for Excellence in Financial Reporting ........................ ..........................xviii
FINANCIAL SECTION
IndependentAuditors' Report ................................................................................................ ..............................1
' Proprietary Fund Financial Statements:
Statementof Net Assets ...................................................................................... ............................... 32
Statement of Revenues, Expenses and Changes in Fund Net Assets ........... ............................... 33
Statementof Cash Flows ..................................................................................... ............................... 34
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets .................................................................... ............................... 36
Notes to Basic Financial Statements ............................................................................. ............................... 37
Management's Discussion and Analysis (Required Supplementary Information) .... ............................... 3
Basic Financial Statements:
'
Government - Wide Financial Statements:
Statementof Net Assets ............................................................................................... .............................16
Statement of Activities and Changes in Net Assets ................................................. .............................18
Fund Financial Statements:
Governmental Fund Financial Statements:
BalanceSheet ... ............................... .................................................................. ...............................
24
Reconciliation of Governmental Funds Balances Sheet to the
'
Government -Wide Statement of Net Assets .............................................. ...............................
Statement of Revenues, Expenditures
26
andChanges in Fund Balances .................................................................... ...............................
28
Reconciliation of Governmental Statement of Revenues, Expenditures,
'
and Changes in Fund Balances to the Government -Wide Statement
of Activities and Changes in Net Assets .................................................... ...............................
30
' Proprietary Fund Financial Statements:
Statementof Net Assets ...................................................................................... ............................... 32
Statement of Revenues, Expenses and Changes in Fund Net Assets ........... ............................... 33
Statementof Cash Flows ..................................................................................... ............................... 34
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets .................................................................... ............................... 36
Notes to Basic Financial Statements ............................................................................. ............................... 37
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City of Poway
Basic Financial Statements
1
For the year ended June 30, 2010
Table of Contents, Continued
Page
1
FINANCIAL SECTION, Continued
'
Required Supplementary Information:
BudgetaryInformation .............................................................................................. ............................... 76
Budgetary Comparison Schedule - General Fund ................................................ ............................... 77
1
Budgetary Comparison Schedule - Low /Moderate Income Housing Special Revenue Fund......
78
DefinedBenefit Pension Plans .................................................................................. ...............................
79
Supplementary Information:
1
Non -Major Governmental Funds:
1
CombiningBalance Sheet .......................................................................................... ...............................
86
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................
92
Non -Major Special Revenue Funds:
City of Poway RDA Debt Service Fund ..................................................... ...............................
97
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FireProtection ............................................................................................ ...............................
98
800 MHz Communication System .............................................................. ...............................
GasTax .............................................................................. ............................... ............................100
99
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StreetImprovement ........................................................ ............................... ............................101
DrainageSpecial .............................................................. ............................... ............................102
MaintenanceDistricts .................................................... ............................... ............................103
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MiscellaneousGrants ...................................................... ............................... ............................104
Community Development Block Grant ....................... ............................... ............................105
TransportationDevelopment Act ................................. ............................... ............................106
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PropositionA Special ..................................................... ............................... ............................107
Royal Mobilehome Park Administration ..................... ............................... ............................108
Traffic Congestion AB 2928 ...................................................................... ...............................
109
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BetteBendixen ................................................................ ............................... ............................110
PowayRoad Beautification ............................................ ............................... ............................111
Poway Valley Senior Center Endowment .................... ............................... ............................112
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OldPoway Park Tree ...................................................... ............................... ............................113
Poway Public Arts Special Revenue Fund ................... ............................... ............................114
KumeyaayEndowment ................................................. ............................... ............................115
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PowayFine Arts Center ................................................. ............................... ............................116
SeniorVolunteer Patrol .................................................. ............................... ............................117
Prop 1B Transportation Bond Special Revenue Fund ............................... ............................118
Storm Water Management Special Revenue Fund ..... ............................... ............................119
Fire Equipment Trust Special Revenue Fund .............. ............................... ............................120
Public Art Trust Special Revenue Fund ....................... ............................... ............................
121
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Regional Arterial Mitigation Special Revenue Fund .. ............................... ............................122
FireProtection Impact Fees ............................................ ............................... ............................123
BEGINProgram ............................................................... ............................... ............................124
MaryPatricia Ross ....................................................................................... ...............................
125
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LibraryPermanent .......................................................... ............................... ............................126
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Page
City of Poway
'
Basic Financial Statements
Changes in Net Assets for Primary Government - Current and Prior Four Years ......... ............................145
For the year ended June 30, 2010
'
Table of Contents, Continued
'
Page
'
FINANCIAL SECTION, Continued
Changes in Net Assets for Primary Government - Current and Prior Four Years ......... ............................145
Non -Major Governmental Funds, Continued:
Fund Balances, Governmental Funds - Last Ten Fiscal Years ............ ............................... ............................146
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City Debt Service Fund ................................................... ............................... ............................127
Assessed Value of Taxable Property General Property Tax - Last Ten Fiscal Years ...... ............................150
Park Improvement Capital Project Fund ..................... ............................... ............................128
Direct and Overlapping Property Tax Rates General Property Tax - Last Ten Fiscal Years ....................152
Municipal Improvement Capital Project Fund ........... ............................... ............................129
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Assessed Value of Taxable Property Redevelopment Tax Increment
Internal Service Funds:
Redevelopment Property Tax Levies and Collections - Last Ten Fiscal Years ............... ............................156
Combining Statement of Net Assets .......................................... ............................... ............................132
General Property Tax Levies and Collections - Last Ten Fiscal Years ............................. ............................157
'
Combining Statement of Revenues, Expenses and Changes in Net Assets ........ ............................133
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years .............................. ............................160
Combining Statement of Cash Flows ........................................ ............................... ............................134
Direct and Overlapping Debt as of June 30, 2009 ................................. ............................... ............................161
I Agency Funds:
Statement of Fiduciary Net Assets ............................................. ............................... ............................136
Combining Statement of Changes in Assets and Liabilities ... ............................... ............................137
tIndependent Auditors' Report on Internal Control Over Financial Reporting
and on Compliance (Including the Provisions Contained in the Guidelines
' for Compliance Audits) and Other Matters based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards ....... ............................139
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STATISTICAL SECTION
Net Assets by Component - Current and Prior Four Years ................ ............................... ............................142
Changes in Net Assets for Governmental Activities - Current and Prior Four Years ... ............................143
Changes in Net Assets for Business -Type Activities - Current and Prior Four Years ... ............................144
Changes in Net Assets for Primary Government - Current and Prior Four Years ......... ............................145
Fund Balances, Governmental Funds - Last Ten Fiscal Years ............ ............................... ............................146
Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years ...................... ............................148
Assessed Value of Taxable Property General Property Tax - Last Ten Fiscal Years ...... ............................150
Direct and Overlapping Property Tax Rates General Property Tax - Last Ten Fiscal Years ....................152
Principal Secured Property Tax Payers General Property Tax
- Current Year and Nine Years Ago ................................................. ............................... ............................153
Assessed Value of Taxable Property Redevelopment Tax Increment
Property Tax - Last Ten Fiscal Years ............................................... ............................... ............................154
Redevelopment Property Tax Levies and Collections - Last Ten Fiscal Years ............... ............................156
General Property Tax Levies and Collections - Last Ten Fiscal Years ............................. ............................157
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .............. ............................... ............................158
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years .............................. ............................160
Direct and Overlapping Debt as of June 30, 2009 ................................. ............................... ............................161
Legal Debt Margin Information - Last Ten Fiscal Years ...................... ............................... ............................162
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City of Poway '
Basic Financial Statements
For the year ended June 30, 2010
Table of Contents, Continued t
Pa.e
STATISTICAL SECTION, Continued
Pledged Revenue Coverage - Last Ten Fiscal Years ............................ ............................... ............................
164
Demographic and Economic Statistics - Last Ten Calendar Years .... ............................... ............................165
'
Principal Employers - Current and Prior Three Years ........................ ............................... ............................166
Full- Time - Equivalent City Employees by Function - Last Six Fiscal Years ..................... ............................167
Operating Indicators - Current and Prior Three Years ........................ ............................... ............................168
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Capital Assets Statistics - Current and Prior Three Years ................... ............................... ............................169
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DON HIGGINSON, Mayor
JIM CUNNINGHAM, Deputy Mayor
MERRILEE BOYACK, Councilmember
DAVE GROSCH, Councilmember
JOHN MULLIN, Councilmember
December 22, 2010
CITY OF POWAY
Honorable Mayor and Members of the City Council
Poway, California
This Comprehensive Annual Financial Report (CAFR) is prepared in order to provide you and the community
with a report of the financial transactions of the City of Poway, for the year ended June 30, 2010. Responsibility
for the accuracy, completeness, and fairness of the report rests with the City.
We believe that the data, as presented, is accurate in all material aspects; that it is presented in a manner designed
to fairly set forth the financial position and results of operations of the City, as measured by the financial activity
of its various fund types; and that all disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial affairs have been included.
The significant accounting policies of the City are described in the Notes to Financial Statements. These
accounting policies have been approved by the City's independent certified public accountants, and are in
conformance with the recommendations of the American Institute of Certified Public Accountants and the
Governmental Accounting Standards Board (GASB).
This report is prepared following the guidelines set forth by the Government Finance Officers Association of the
United States and Canada and the California Society of Municipal Finance Officers.
In accordance with the above - mentioned guidelines, the report is divided into three sections:
Introductory Section - including this letter of transmittal, the City's organizational chart, and the
list of principal officers.
2. Financial Section - including the independent report from the City's certified public accountants,
management's discussion and analysis, basic financial statements, notes to financial statements,
and required supplementary information.
3. Statistical Section - including other pertinent unaudited financial tables and information that
presents historical trends, demographics, and miscellaneous data about the City.
Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD &A complements
this letter of transmittal and should be read in conjunction with it.
City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074 -0789
www.poway.org
Annual Financial Report
December 22, 2010
Page vi
The Reporting Entity and Its Services
Included within the City's financial statements is the financial information of the Poway Redevelopment
Agency and the Poway Public Financing Authority. Although the entities are legally separate from the
City, their financial operations are closely related. Their activities are included with the activities of the
City, because the City Council serves as the Board of Directors and is able to impose its will on both
entities. There is, therefore, a financial benefit/burden relationship. This financial presentation is in
accordance with GASB Codification, Section 2100.
The City of Poway was incorporated December 1, 1980, under the general laws of the State of
California. The City operates under a Council- Manager form of government and provides the following
services: public safety (law enforcement, fire suppression /paramedics), community services,
development services, public works, general administrative services, and capital improvements.
The Poway Redevelopment Agency was established April 26, 1983, pursuant to the State of California
Health and Safety Codes, Section 33000, entitled "Community Redevelopment Law." Its purpose is to
eliminate blighted areas by encouraging the development of residential, commercial, industrial,
recreational, and public facilities.
The Poway Public Financing Authority is a joint powers authority organized pursuant to the State of
California Government Code, Section 6500. The authority exists under a Joint Exercise of Power
Agreement dated October 8, 1991, between the City of Poway and the Poway Redevelopment Agency.
Its purpose is to assist in financing and refinancing projects for the benefit of the City and the Agency.
History
Poway, from Indian words meaning "where the waters meet," first gained prominence in the 1800s as
an important link in Southern California's stagecoach network. Today the City is a thriving, civic - spirited
community, located in the coastal foothills of San Diego County, just twenty miles north of downtown
San Diego and three miles east of Interstate 15.
The City of Poway flourishes with a family- oriented population of 52,056 and covers 39 square miles
with elevations ranging from 450 to 2,250 feet above sea level. Poway is a full - service general -law city
governed by a council of five members -at -large serving staggered four -year terms. In 1990, the City
had its first mayor directly elected by the voters. The City absorbed existing special districts as of
February 1, 1981. The City provides water, sewage collection, fire, paramedic, parks and recreation,
planning and building, street maintenance, and redevelopment services. Law enforcement services are
contracted through the San Diego County Sheriffs Department, and wastewater treatment is provided
by the City of San Diego.
Poway is predominately a single- family community that has the lowest crime rate in the County. The
Poway Unified School District is a top performer in the State and nation, and is a source of great pride
for the City.
As part of San Diego County, Poway has a relatively dry climate with frost -free temperatures over 300
days per year, and rainfall of about 10 inches, which falls principally between October and April. The
average daytime temperature in Poway is about 74° F.
Poway has been popularly dubbed the "City in the Country." Poway has set aside over 65 percent of
total land use as open space, nearly 3,000 acres of dedicated public open space, 568 acres of
developed parkland featuring community parks and centers, and 82 miles of riding and hiking trails.
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' Poway has the third highest median household income in San Diego County, at $105,420 for 2010.
Home lots are often larger than in most other areas, with a median sales price of $486,250 in June
2010. Like many areas of the country, especially in Southern California, the June 2010 median sales
' price represents a 30.2% increase from the June 2009 median sales price of $373,500 but is
comparable to the June 2008 median sales price of $455,000. While Poway has not been immune to
the national downturn in housing prices, Poway's property tax base has not been materially affected as
' of this date.
Economic Condition and Outlook
' The global recession has had a profound effect on the City's financial outlook. Although the national
economy is showing signs of recovery, unemployment rates remain high and sales tax revenues in
Poway remain relatively flat. We continue to be concerned with the State's ability to balance its budget
' and its overall financial condition. The State raid of $13.7 million of Poway redevelopment funds in FY
2009 -10, and another take of $2.8 million in FY 2010 -11, has effectively stalled our redevelopment
plans for several years.
' In light of these challenges, we have taken necessary steps over the last few years to strengthen the
General Fund to adapt to what we believed would be a slow economic recovery. The City has made
strategic cuts to the General Fund totaling $3.7 million over the last two years. Additional budgetary
' savings were achieved when employees began paying 3% of salary toward their pension costs in FY
2009 -10, saving the City $520,000 across all funds. Furthermore, Council authorized the use of the
$1.4 million Pension Stabilization Fund in February 2010, along with another $230,000 from
' undesignated General Fund Reserves, to pay down the Safety Services unfunded pension liability. This
will net about $330,000 in savings to the General Fund operating budget for each of the next five years.
' Through strategic financial management, the City has also been able to preserve essential community
services and public infrastructure. The City plans to assess and evaluate its budget quarterly and will
make additional adjustments as necessary to ensure a sustainable budget.
' Economic Development: Poway's local economy is based primarily on general consumer goods,
automobile and transportation related sales, and business and industry. In recent years, new retail
development in the Poway Business Park has generated growth in our sales tax base. While
' automobile sales have traditionally led the way, with the development of the Business Park, other
sectors such as business and industry and general consumer goods have helped to diversify the City's
sales tax base. While diversification has helped, the slowdown in the larger economy, including
' automobile sales, is still reflected in the City's sales tax revenue. Declines in local sales tax revenues
are generally thought to have "bottomed out" and expectations are for moderate gains in local
allocations over the next few years.
' The Business Park now represents approximately 8.9 million square feet of developed space, with an
average overall vacancy rate of 5.7 %, which is among the lowest in San Diego County through the
second quarter of 2010. The Park is comprised of approximately 532 businesses, with a workforce of
' more than 18,000 people. Next year, we expect the Business Park will see little new development
activity as developers, lenders, and business owners seek to weather the recession while looking for
continued signs of economic recovery.
' Though the recession has impacted many businesses, the Poway Business Park is well positioned to
be a strong growth center for San Diego County in the years ahead. We have seen early signs of this
trend with a prominent defense contractor continuing to expand its operations in the Park. Also,
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December 22, 2010
Page viii
In -N -Out Burger is currently under construction in the Business Park and is expected to be complete in
2011. Additionally, Sysco Foods, currently located in the Park, plans to expand their business
operations by 100,000 square feet in the year ahead.
Partnering with the Chamber of Commerce, the City has reinvested in the "Poway: Your First Choice"
campaign to promote the importance of shopping locally. As part of the campaign, the City co-
sponsored movie ads that promote shopping in Poway as well as the Poway Road of Cars. In addition,
community discount cards are available through the Chamber that enable patrons to secure discounts
from participating businesses, which has proven to be another successful outreach method.
Major Accomplishments
Public Safety: The City of Poway remains one of the safest cities in San Diego County. Public safety
is managed by the Department of Safety Services through two entities: contract law enforcement with
the County of San Diego Sheriff's Department and the City's Fire Department.
Poway Sheriff deputies continued their aggressive zero - tolerance policy enforcement toward gang -
related crimes. Deputies conducted detailed documentation of known gang members and partnered
with the District Attorney's Office to ensure gang - related crimes are prosecuted by the District
Attorney's Gang Unit.
During the last year, traffic - related deaths, injury, and property damage collisions were reduced through
increased traffic enforcement operations. Deputies analyzed crash data and altered work schedules by
placing more deputies on duty to conduct enforcement operations during the times when collisions
were most likely to occur.
Poway Sheriff deputies continued their partnership with the Poway Unified School District by providing
School Resource Officers and increased student interaction. Several community outreach education
presentations on the abuse of OxyContin and other related drugs were conducted. Deputies offered
monthly Smart Start driver safety education presentations targeting new and future - licensed teenage
drivers and their parents /guardians.
In 2009, the Poway Fire Department responded to 3,764 emergency responses with approximately
70% of the incidents as Emergency Medical Services (EMS) related. New fire station - alerting
communication systems were installed in each of its three fire stations resulting in improved incident
notification and firefighter reaction to calls for response. The Department introduced new automated
handheld devices for initiating and processing patient treatment information and ambulance billing.
This new equipment is carried on all first responder units including engines, ambulances, and a ladder
truck.
A new fire engine designed for response to vegetation fires was purchased and placed into service at
Fire Station #1. The new truck replaces an aging vehicle and is equipped with the latest technology to
support firefighters who combat vegetation fires. The Department completed the replacement and
upgrade of 33% of the Mobile Data Computers (MDC) in use on fire apparatus. These new MDCs
operate at a faster speed and improve emergency incident management, response mapping, and
resource allocation. The Department replaced two aging EKG heart monitors used by paramedics with
the latest in advanced life- saving equipment.
Disaster Preparedness: The City of Poway continues to improve its Emergency Planning and
Disaster Preparedness activities. These improvements build upon the effectiveness of the Emergency
Operations Plan by maintaining up -to -date information available in the City's Emergency Operations
Center (EOC). New computers, display boards, video - conferencing technology, and aircraft down-
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linking capabilities were installed in the EOC. The City remains committed to training employees,
minimizing our risk to the effects of disasters, and providing educational opportunities to community
members. Staff received refresher training on the use of WebEOC, AlertSanDiego emergency
notification system, Disaster Service Worker, and care and shelter operations.
The City also completed the implementation of a Care and Shelter program with three local faith -based
organizations. This $80,000 Red Cross grant program includes the prepositioning of supplies and
training congregation members to be Care and Shelter workers. When combined with the City's
Community Park Care and Shelter facility, over 2,400 evacuees may be able to seek temporary care
and shelter within Poway. Poway's Community Emergency Response Team (CERT) consists of 63
members divided into three separate groups. During the last year, Poway CERT participated in eight
training sessions, three community education events, and two County -wide drills.
To protect the lives of firefighters, and to provide for greater structure protection, the City continued
administering the Wildfire Defensible Space Program (WDSP). This program requires 100 feet of
defensible space be cleared around habitable structures within the Wildfire Urban Interface Area. Staff
continues to work with residents to ensure that the amount of flammable vegetation is significantly
reduced on properties.
Community Services: The Department continues to develop new partnership opportunities with local
non - profit organizations to provide services within the community. For example, a local church
assumed responsibility for the Spring Egg Hunt, and the Community Band Festival was spearheaded
by the Pomerado Community Band. The Community Services Department plays a key role in the City's
disaster preparedness efforts, and is working in conjunction with Safety Services and the American Red
Cross to develop and implement an expanded Emergency Shelter Program, enlisting the services of
several local churches, and training their members to operate emergency shelters as- needed.
The City hosted 19 community -wide events, such as Christmas in the Park and the Summer Concert
Series; 21 smaller- scaled events that showcased the City's unique facilities and park settings; and
weekly family- oriented freestyle skate events for those 14 and under at the Poway Skate Park.
Access to programs and facilities were improved through enhanced web content, online ticketing
capabilities, and automated Skate Park access, which also increased safety. Further operational
analysis is underway to identify additional areas for greater cost savings and possible opportunities for
revenue generation.
Redevelopment: Efforts began in 2009 to identify a qualified buyer for the City -owned Poway Royal
Estates Mobilehome Park. In 2010, the City sold the Park to Hometown America for $38.3 million. As
a requirement of the sale, Hometown will complete an extensive list of Park repairs and renovations
and honor lease terms for existing residents for as long as they reside in the Park. The close of escrow
occurred in July of FY 2010 -11.
In an effort to revitalize the auto district located at the east end of Poway Road, the Redevelopment
Agency purchased the vacant Chrysler dealership on Poway Road in 2010. In turn, the Agency
facilitated a ground lease to Poway Toyota, which will enable Toyota to terminate its lease and expand
operations on the Agency -owned property and the two adjacent parcels purchased by Toyota. Toyota
will invest an estimated $10.1 million to purchase the land and expand business operations in Poway.
Lowe's Home Improvement Store has purchased the current Poway Toyota and previously vacated
Poway Chevrolet sites. Lowe's has submitted plans proposing to build a new 150,000 square -foot
Lowe's home improvement store on the 11 -acre site. Once complete, the total private investment
associated with this project will total well over $30 million. These changes will improve the long -term
viability of the business community at the eastern end of Poway Road.
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December 22, 2010
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Redevelopment Services continues to solicit restaurant operators to develop a full - service restaurant on
the 1.23 -acre Agency -owned site adjacent to the Hampton Inn & Suites hotel in the Poway Business
Park. The goal is to create synergy between the hotel and the restaurant that will serve guests, and
create a regional dining destination.
Development Services: On June 1, 2010, the City Council approved an update to the Transportation
Element of the General Plan. This Element had not had a major update since 1991, and staff had been
working on this update for approximately 3 years. The updated Element has downsized several road
sections, changed the roadway level of service threshold, and modified the City -wide bicycle element.
The Wildfire Defensible Space Program (WDSP) has been very successful since its implementation in
2009. Originally, a total of 921 properties were identified as needing brush clearance. To date, all but
six of the properties are in compliance with the requirements of the program. Staff continues to monitor
the non - compliant properties and four out of the six properties are expected to be in compliance by the
end of November 2010. Currently, there are several strategies being developed and implemented that
would enhance the ongoing administration, monitoring, and reporting of the WDSP. Two of the key
strategies currently underway are: (1) development of a special permitting module and entering of all
the data in the electronic tracking system; and (2) prioritization of the properties that would require
annual inspections (such as those in the high fire hazard areas) and other properties that may be
inspected on a biennial basis.
Technology Upgrades: The City's website was redesigned in November 2009 to improve navigation
and give more prominence to online applications. The enhancements included improved search
functionality on the home page, style templates to enhance the design, and additional tools that
facilitate updates and maintain consistency across the web pages. The Poway Center for the
Performing Arts' website was upgraded in January 2010 and migrated to the same content
management system as the main Poway website. This has made it efficient for staff to maintain the
information and reduce hosting costs.
In December 2009, Development Services implemented an application tracking system that allows staff
to track the status, progress, and history of all projects, permits, and code compliance cases in one
easily accessible place. This application provides greater efficiency since information is now easily
located in one database available to staff in several departments, and the data is accessible through
standard and custom reports. Paper documents are now scanned and attached to the electronic record
for enhanced recordkeeping. Future enhancements will include online access to permit and project
information so customers can check the status of their projects and staff can access and input data
using mobile units in the field.
The Information Technology staff has also successfully upgraded the City's server infrastructure and
moved to virtual servers this year. In January 2010, the City successfully virtualized 24 production
servers at City Hall and implemented a centralized Storage Area Network (SAN) appliance which
reduced the electricity consumption and the amount of physical hardware in the data center.
Enhancements planned for the next fiscal year include upgrades to the server hardware at the Public
Works facility.
Another technology focus has been the continued development of the City's Geographic Information
System (GIS). The most important GIS enhancement this fiscal year was the completion of the Water
and Wastewater Data Conversion project. The City now has detailed, easily accessible utility
information that allows for analysis of existing infrastructure and provides staff with the information
needed for maintenance and emergency repairs. Additional GIS layers currently being worked on
include: street signs, street lights, street signals, and storm drain facilities.
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December 22, 2010
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Energy Efficient Initiatives: A comprehensive energy audit of 45 City -owned and operated facilities
was recently completed. The audit reports identify and prioritize energy efficiency improvement
projects, including the replacement of HVAC equipment, interior and exterior lighting fixtures, and the
installation of energy monitoring equipment to measure and verify energy savings. Additionally, the
audit identified sites best suited for the installation of renewable energy technologies to expand on -site
renewable energy generation capacity and reduce the City's energy consumption. Post - assessment
activities include indentifying and applying for available energy efficiency incentives, rebates, and
finance opportunities to implement energy and renewable energy improvements. The environmental
programs division is also working on several project activities utilizing the Energy Efficiency and
Conservation Block Grant (EECBG) funds received through the American Recovery and Reinvestment
Act (ARRA).
Major On -Going Initiatives
Housing: Despite the tight lending market, 23 of The Meadows homes have sold or are in escrow, and
expected to close in the coming months. This affordable for -sale housing development, which includes
33 homes, is located on Metate Lane and York Avenue. Homes at The Meadows are available to low -
and moderate - income households and include a variety of "green" energy efficient elements including
photovoltaic systems, dual pane windows, low -flow toilets, tankless water heaters, energy efficient
appliances, and drought - tolerant landscaping.
The 71 -unit affordable apartment complex known as Brighton Place, located on Brighton Avenue near
Midland Road, was awarded a 9% tax credit allocation from the State of California. The tax credits will
attract the needed equity investment to support construction commencement in FY 2011. The project
will feature a Craftsman style two -story design with ample open space and on -site resident services.
Construction is scheduled to begin in late 2010, and will complement the overall Old Poway Park area
revitalization effort. Extensive improvements to Midland Road and construction of the Train Depot at
Old Poway Park were completed in FY 2010.
Design of Monte Vista, a 62 -unit affordable multi - family development located on Monte Vista Road near
Pomerado Hospital is also underway. The site, situated on 2.5 acres, will have underground parking
with almost 50% of the site dedicated to open space for use by residents. The project will include
townhomes designed in a contemporary architectural style that will enhance the surrounding uses.
Monte Vista will offer onsite resident services and will include numerous "green" energy features.
The Redevelopment Agency, in partnership with local non - profit housing developer Community
HousingWorks, rehabilitated the 52 -unit Oak Knoll Villas apartment complex on Oak Knoll Road. With
the help of a loan from the Redevelopment Agency, rents for this development were permanently
converted to affordable rents for low- income households. The renovated apartment complex
' complements the City's Oak Knoll area revitalization efforts already underway. The revitalization work
includes sewer and road improvements along with the undergrounding of utilities along Oak Knoll
Road.
Working with Poway Family Housing Partners, L.P., the Redevelopment Agency acquired a 52 -unit
apartment complex adjacent to Oak Knoll Villas on Oak Knoll Road during FY 2010. Renovations to
this development are expected to be underway during FY 2011, and will include interior and exterior
improvements along with improvements to the private driveway adjacent to the apartment complex
geared toward improving safety for pedestrians and vehicles. Once complete, units will be available to
low- income households.
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Annual Financial Report
December 22, 2010
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Water: Following several years of historically dry conditions and reduced availability of water deliveries
from Northern California for environmental reasons, for the first time in nearly two decades, the
Metropolitan Water District (MWD) announced forthcoming mandatory water reductions in Spring 2009.
As a result, the City of Poway's water supply was reduced by 8% effective July 1, 2009. This reduction
was based on a three -year average of City -wide water use for fiscal years 2004 -05, 2005 -06, and 2006-
07. Exceeding this mandatory water reduction would result in steep financial penalties attached to the
City's cost to purchase water.
To achieve the necessary water use savings, the City of Poway implemented mandatory water use
restrictions focused primarily on landscape irrigation, significantly expanded public education, and
launched new programs to help customers with their efforts to reduce water use. The focus was
creating "long -term, sustainable change in the way water users think about and use our limited water
supply." These programs were created and coordinated by a small group of employees temporarily
reassigned for one year from multiple City departments in April 2009.
During FY 2010, wholesale water costs continued to rise dramatically. A 40% increase in the cost of
raw water required the City to adjust rates to cover its costs. Simultaneously, the City Council
approved a block rate structure to encourage conservation by water customers.
These efforts, combined with above average rainfall and cooler temperatures, yielded tremendous
water conservation success. Overall water use in Poway during Fiscal Year 2009 -10 decreased by
more than 30% compared to two years ago in FY 2007 -08. Residents and businesses are to be
commended for their efforts to use water as efficiently as possible.
Poway's future water supply remains uncertain. While weather conditions have improved, a La Nina is
predicted for 2010 -2011, which means warm, dry weather. Restrictions on water deliveries from
Northern California remain, indefinitely. New California legislation approved during FY 2009 -10 calls for
20% conservation by 2020. The cost of raw water is expected to continue to increase. In the water
industry, water conservation is commonly discussed as the cheapest source of new water. These
factors combined means that a focus on water - efficiency must be part of the City's long -term outlook.
Capital Improvement Projects (CIP): There are 18 CIP projects that are either under construction or
are substantially complete. Some of the major projects are street improvements on Oak Knoll Road,
Poway Midland Railroad Train Depot, High Valley Pump Station, St. Andrews Sewer Pump Station,
Veterans Park, and the FY 2009 -10 Street Overlay.
There is currently one project, the High Valley Waterline Replacement project, which is in the pre -
construction phase. This project has a construction cost estimate of $980,000.
There are 19 CIP projects totaling approximately $6.1 million that are in various stages of design. It is
expected that construction on most of these will begin within the next two years. Some of the major
projects currently being designed are Valle Verde Traffic Calming and Solera Way Sidewalk, the
Arbolitos Sports Field Renovation and Lights, the Clearwell Redundant Pipeline, and the Sewer Master
Plan Update.
Technology: Projects that started this fiscal year and will continue into next year include the Employee
Self Service Application and the deployment of Microsoft Sharepoint. The Employee Self Service
application will allow staff to electronically enter hours for payroll reporting and then receive pay and
benefit information electronically. It allows employees to review and update personal information such
as home address and emergency contact information. These enhancements will reduce the time spent
preparing, delivering, and processing timecards and pay stubs. The Sharepoint project will be
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December 22, 2010
Page xiii
implemented in November 2010, as a replacement to the City's current intranet site. Sharepoint
provides exceptional content management capabilities and will also be a collaborative tool that is fully
integrated with the Microsoft Office Suite.
Accounting System and Budgetary Control
The City's accounting records for governmental fund types and the Agency funds are maintained on the
modified accrual basis of accounting. The modifications to the accrual basis of accounting are
described in the Notes to Financial Statements. The accounting records for proprietary funds (water
and sewer) and the internal service funds are maintained on the full accrual basis of accounting.
Accordingly, revenues are recognized in the accounting period earned, and expenses are recognized in
the period incurred.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal accounting controls. Internal accounting controls are designed to provide reasonable, but not
absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use or
disposition, and (2) the reliability of financial records for preparing financial statements and maintaining
accountability of assets. The concept of reasonable assurance recognizes that the cost of a control
should not exceed the benefits likely to be derived. The evaluation of this cost/benefit relationship
requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Financial transactions are continuously updated in the City's computerized financial reporting system,
and all managers have instant access to the current budget information for which they are responsible.
These financial reports compare the budgeted figures to the recorded transactions and compute the
resulting variance. These reports form the basis of the budgetary control system that allows for the
timely review and continuous assessment of the financial position and results of operations.
Additionally, an encumbrance system is employed as an extension of the formal budget integration.
The estimated purchase order amounts are encumbered prior to releasing the order to a vendor.
Purchase orders which would result in an overrun of balances at the functional level, are normally not
released until budget transfers are approved by the City Manager or additional appropriations are
authorized by the City Council. Open encumbrances are reported as annual reservations of fund
balances at year -end. The level of budgetary control (the level on which expenditures may not legally
exceed appropriations) is the individual fund level.
Financial reports that are available for management and legislative review include quarterly reports of
investments, Capital Improvement Projects, as well as first and third quarter budget status reports. At
the end of six months, a midyear report is distributed, which assesses the City's financial position and
results of operations and projects activity for the remainder of the fiscal year. The interim report forms
' the basis for the budget projections for the upcoming fiscal year's budget. A budget review committee,
consisting of five Council- designated citizens, reviews the City's financial operations and budget
controls twice each year. After the Fiscal Year 2007 -08 and 2008 -09 two -year budget, the City
' resumed adopting a one -year budget for Fiscal Year 2009 -10. This decision was made because
volatility of the economy makes it difficult to predict revenues and expenses further out with confidence.
' The City's investment policy is reviewed annually for changes in State regulations and is approved by
the City Council. Since Fiscal Year 1996 -97, the City has utilized a professional investment
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Annual Financial Report
December 22, 2010
Page xiv
management company to assist in the investment of its funds. The investment management company
actively monitors the portfolio and advises the City of various investment strategies that assist the City
in meeting its stated investment goals of (1) safety of principal, (2) liquidity, and (3) return on
investment.
Risk Management
The City of Poway is a member of the California Joint Powers Insurance Authority (Authority), a
consortium of approximately 122 public entities. The Authority's governing board consists of one
member from each participating entity and is responsible for the selection of management as well as
budgeting and finance. Insurance activities are financed by charges to members, and no long -term
debt has been incurred. The Authority changed its deposit funding model over the next three to five
years to build up to a 75% funding level. As part of this transition, the Authority has evaluated every
member's claims experience to assign a pro -rata portion of the Authority's unfunded liability. Poway's
share of the funding requirement is estimated to be a little more than $1 million between the General
Liability and the Worker's Compensation pools.
At June 30, 2010, for general liability, the City is self- insured for each loss to the extent of $30,000.
Losses between $30,001 and $10,000,000 are shared by the participating entities. Costs of covered
claims between $10,000,001 and $50,000,000 are paid by excess insurance. As for workers'
compensation, the City is responsible for the first $50,000 of each claim. Costs between $50,001 and
$2,000,000 are shared by the participating entities. Costs between $2,000,001 and $200,000,000 are
paid by excess insurance purchased by the Authority. The Authority does maintain reserves, which are
regularly reviewed by an independent third party. Because of the low deductible amounts of the self -
insurance program, the City does not maintain reserves or a sinking fund for its unpaid claims and
judgments. They are expended as they occur, and the City intends to pay all of its unpaid claims and
judgments from available resources.
Independent Audit
The Government Code of the State of California requires general law cities such as Poway to be
audited annually by independent certified public accountants selected by the City Council. This
requirement has been met and the auditors' independent report is included in this report. Also, please
refer to the Management Discussion and Analysis section for an in -depth review of this year's Financial
Statements.
GFOA Certificate of Achievement for
Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) has awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Poway, California, for
its comprehensive annual financial report for the fiscal year ended June 30, 2009. In order to be
awarded a Certificate of Achievement for Excellence in Financial Reporting, a government must publish
an easily readable, efficiently organized Comprehensive Annual Financial Report whose contents
conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one
year only. We believe that our current report conforms to the program requirements, and we are
submitting it to the GFOA to determine its eligibility for the certificate.
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December 22, 2010
Page xv
Acknowledgments
Preparation of the City's Comprehensive Annual Financial Report is an undertaking of the
Administrative Services Department. Special credit is due to Andrew White, Finance Manager; Maria
Weston, Senior Accountant; and the entire Finance Division staff. Their yearlong hard work and
dedication have made this report possible.
We also thank the City Council for their interest and support in planning and conducting the financial
operations of the City in a responsible and progressive manner.
Respectfully submitted -
Penny Riley
City Manager
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rench
it of Administr ive Services
City Council
Mayor Don Higginson
Deputy Mayor Carl Kruse
Council: Merrilee Boyack
Jim Cunningham
John Mullin
Appointed Officials
City Manager Penny Riley
Assistant City Manager Tina White
City Attorney Lisa Foster
City Clerk Linda Troyan
Administrative Personnel
Director of Administrative Services/Treasurer Steve Didier
Director of Development Services Robert Marais
Director of Public Works Leah Browder
Director of Redevelopment Services & Community Services Dena Fuentes
Director of Safety Services Mark Sanchez
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CITY OF POWAY
ORGANIZATION CHART citizens
City Council
Planning Commission
Redevelopment Agency
City Manager/
Executive Director
Administrative I I Community I I Development
Services Services Services
1. Human Resources
1. Leisure Services
1. Planning
2. Customer Services
2. Lake Operations
2. Building
3. Finance
3. Aquatics Center
Inspection
4. Information
4. Performing Arts
3. Capital Projects
Technology
Center
4. Land
5. Support Services
5. Old Poway Park
Development
6, Risk Management
6. Library
5. Engineering
7. Capital Management
7. Interpretive Center
Inspection
8.
Drainage Maintenance
6. Traffic
9.
Facilities Maintenance
Engineering
City Clerk I I City
Attorney
Public I I Redevelopment
Works Services
1.
Fleet Maintenance
1. Redevelopment
2.
Water Supply
Services
3.
Sewer Pumping &
2. Redevelopment
Disposal
3. Economic
4.
Water Distribution
Development
5.
Wastewater Collection
4. Housing Program
6.
Maintenance Control
7.
Street Maintenance
8.
Drainage Maintenance
9.
Facilities Maintenance
10.
Trails & Open Space
11.
Park & Landscape
Maint.
12.
Storm Water Mgmt
13.
Reclaimed Water
14.
Special District Admin.
Council
Committees
Safety
Services
1. Fire Suppression
2. Fire Prevention
3. Paramedics
4. Law Enforcement
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Poway
Califomia
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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Caporicci & Larson, Inc.
A Subsidiary ofMarcum LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Poway
Poway, California
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Poway,
California (City), as of and for the year ended June 30, 2010, which collectively comprise the City's
1 basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit.
' We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
' plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances but not
1 for the purpose of expressing an opinion on the effectiveness of the City's internal control over
financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
In our opinion, the basic financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each major
' fund, and the aggregate remaining fund information of the City as of June 30, 2010, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
' In accordance with Government Auditing Standards, we have also issued our report dated December 22,
2010 on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
the internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
taw-W.c- 1cpa.com
To the Honorable Mayor and Members of the City Council '
of the City of Poway
Poway, California
Page 2
The accompanying Management's Discussion and Analysis, budgetary information, budgetary
comparison schedules and Schedule of Funding Progress of Defined Benefit Pension Plans as listed in '
the table of contents, are not a required part of the basic financial statements but are supplementary
information required by the Governmental Accounting Standards Board. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the Required Supplementary Information. However, we did not
audit the information and express no opinion on the Required Supplementary Information.
Our audit was conducted for the purpose of forming opinions on the financial statements that '
collectively comprise the City's basic financial statements. The accompanying Supplementary
Information is presented for purpose of additional analysis and is not a required part of the basic
financial statements. The Supplementary Information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole. The Introductory and Statistical
Sections have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
& , , �
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Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 22, 2010
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Poway (City), we offer readers of the City's financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2010.
It should be read in conjunction with the accompanying transmittal letter beginning on page i and the
accompanying basic financial statements. All amounts, unless otherwise indicated, are expressed in
thousands of dollars.
FINANCIAL HIGHLIGHTS
• The City's net assets decreased by 1 % to $136,615 as a result of this year's operations.
• During the year, the City's expenses exceeded taxes, other governmental revenues and business
activity revenues by $1,391.
• The total revenues from all sources were $124,984.
• The total cost of all City programs was $126,375.
• Governmental net assets were $57,506.
• The General Fund reported excess expenditures over revenues and other financing uses of $1,342.
• Actual revenues received in the General Fund were more than the final budget by $1,531 while actual
expenditures were $3,741 less than final budget before other financing sources and uses.
• At the end of the fiscal year, unreserved fund balance for the General Fund was $31,725 or 87% of
total General Fund expenditures (excluding other financing uses).
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the financial
statements are: (1) Government -wide financial statements, which include the Statement of Net Assets and
the Statement of Activities. These statements provide information about the activities of the City as a whole.
(2) Fund financial statements describe how City services are financed in the short term as well as what
resources are available for future spending. Fund financial statements also report the City's operations in
more detail than the government -wide statements by providing information about the City's most
significant funds. (3) Notes to the financial statements.
Reporting the City as a Whole
The Statement of Net Assets and the Statement of Activities (Government -wide)
A frequently asked question regarding the City's financial health is whether the years activities contributed
positively to the overall financial well -being. The Statement of Net Assets and the Statement of Activities
report information about the City as a whole and about its activities in a way that helps answer this
question. These statements include all assets and liabilities using the accrual basis of accounting, which is
similar to the accounting used by most private - sector companies. All of the current year's revenues and
expenses are accounted for regardless of when cash is received or paid.
These two statements report the City's net assets and changes thereto. Net assets, the difference between
assets and liabilities, are one way to measure the City's financial health, or financial position. Over time,
increases or decreases in net assets are an indicator of whether the financial health is improving or
deteriorating. However, it is important to consider other nonfinancial factors such as changes in the City's
property tax base or condition of the City's roads to accurately assess the overall health of the City.
3
The Statement of Net Assets and the Statement of Activities present information about the following:
Governmental activities - All of the City's basic services are considered to be governmental
'
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activities, including general government, public safety, public works, and community services.
Property taxes, sales taxes, motor vehicle license fees and franchise fees finance most of these ,
activities.
• Proprietary activities /Business -type activities - The City charges a fee to customers to cover all or
most of the cost of the services provided. The City's Water and Sewer systems are reported in this ,
category.
• Component unit - The City's governmental activities include the blending of one separate legal
entity: the Poway Redevelopment Agency. Although legally separate, this "component unit" is
important because the City is financially accountable for it.
Reporting the City's Most Significant Funds '
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the City
as a whole. Some funds are required to be established by State law and by bond covenants. However,
management establishes many other funds that aid in the administration of resources for particular ,
purposes or to meet legal responsibilities associated with the usage of certain taxes, grants, and other
money. The City's two kinds of funds, governmental and proprietary, use different accounting approaches as
explained below. '
• Governmental funds - Most of the City's basic services are reported in governmental funds.
Governmental funds focus on how resources flow in and out with the balances remaining at year- '
end that are available for spending. These funds are reported using an accounting method called
modified accrual, which measures cash and all other financial assets that can readily be converted to
cash. The governmental fund statements provide a detailed short -term view of the City's general '
government operations and the basic services it provides. Governmental fund information shows
whether there are more or fewer financial resources that can be spent in the near future to finance
the City's programs. We describe the relationship (or differences) between governmental activities '
(reported in the Statement of Net Assets and the Statement of Activities) and governmental funds
through a reconciliation in Note 1 in the Notes to Basic Financial Statements.
• Proprietary funds - When the City charges customers for the services it provides, these services are '
generally reported in proprietary funds. Proprietary funds are reported in the same way that all
activities are reported in the Statement of Net Assets and the Statement of Activities.
The City as Trustee '
Reporting the City's Fiduciary Responsibilities I
The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and
others. These fiduciary activities are reported in separate Statements of Fiduciary Net Assets and Changes
in Fiduciary Net Assets. The City is responsible for ensuring that the assets are used for their intended
purposes. Therefore, fiduciary activities are excluded from the City's other financial statements because the
assets cannot be used to finance operations. I
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THE CM AS A WHOLE
Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City's
governmental and business activities.
Governmental
Activities
Table 1
City of Poway Net Assets
(in Thousands)
Business
Activities
Total
2010 2009 2010 2009 2010 2009
Assets:
Current and
other assets $ 154,240 $ 175,442 $ 37,862 $ 37,257 $ 192,102 $ 212,699
Capital assets 199,065 195,035 44,889 40,696 243,954 235,731
Total assets 353,305 370,477 82,751 77,953 436,056 448,430
Liabilities:
Long -term
debt outstanding 287,225 294,554 1,662 1,883 288,887 296,437
Other liabilities 8,574 11,520 1,980 2,467 10,554 13,987
Total liabilities 295,799 306,074 3,642 4,350 299,441 310,424
Net assets:
Invested in capital
assets, net of debt 46,412 36,714 43,226 39,128 89,638 75,842
Restricted 78,370 99,252 280 280 78,650 99,532
Unrestricted (67,275) (71,563) 35,602 34,195 (31,673) (37,368)
Total net assets $ 57,506 $ 64,403 $ 79,109 $ 73,603 $ 136,615 $ 138,006
The City's combined net assets for the fiscal year ended June 30, 2010, were $136,615. The City has chosen to
account for its water and sewer operations as enterprise funds, which is shown as Business Activities on
Table 1. The City's net assets for governmental activities decreased 10.7% from $64,403 to $57,506. The
following is an explanation of the governmental activity changes between fiscal years as shown in Table 1:
• Current and other assets decreased $21,202, or 12.1 % principally due to a decrease in cash and
investments. The decrease was related to a $13.7 million Supplemental Educational Revenue
Augmentation Fund ( SERAF) payment required by the state and expenditures on capital projects.
• Capital assets increased $4,030 (net of depreciation and disposition) as detailed in Table 4.
Additions were made for construction in progress for various City projects including the Oak Knoll
Widening project and Machinery and Equipment for the purchase of fire apparatus.
• Governmental long -term debt decreased $7,329. The decrease is primarily due to the scheduled
principal payments. (See Table 5 for additional detail.)
• Other liabilities decreased by a net $2.9 million. The decrease was related to reduced payments by
the Redevelopment Agency for tax sharing and owner participation payments because of the $13.7
million SERAF payment that was previously mentioned.
5
Invested in capital assets net of debt increased $9.7 to the amortization of debt and additions not
funded by debt.
Restricted net assets decreased by $20,882, or 21.0 %, again due to the SERAF payment,
expenditures on capital projects and a reclassification of General Fund net assets that had
previously been reported as restricted and have now been moved to unrestricted.
Unrestricted net assets, the part of net assets that can be used to finance day - to-day operations
without constraints established by debt covenants or other legal requirements, increased by $4.3, or
6.0 %, primarily due to current year operations and the above mentioned reclassification of General
Fund net assets to unrestricted.
Governmental Activities
The cost of all Governmental activities this year was $100,626 as shown on Table 2 and 2.1. Of this cost,
$10,858 was paid for by those who directly benefited from the programs, $8,862 was subsidized by grants
received from other governmental organizations for both capital and operating activities, and $74,009 was
financed through general City revenues. Overall governmental program revenues, including
intergovernmental aid and fees for services were $19,720. Items of significance within Table 2 are:
Revenues:
• Charges for services decreased by 8.1% primarily due to decrease in Public Safety fines and
penalties and a non - recurring payment from the County related to law enforcement services, Public
Works decreased because the prior year included a one time payment of $324 which should have
been included in the grants category and a decrease in Community Services, however, there was no
large individual item that made up that decrease.
• Grants and contributions increased by 11.7% primarily because of increased funding for street
maintenance.
• The General Revenue category decreased 0.4% primarily due to decreases in sales tax and
investment earnings.
Expenses:
• General Government Expenses increased $683 or 3.0 %. The increase was the net result of reduced
administrative expenditures and an increase in spending on projects for which financial assistance
was provided, but that were not capitalized.
• The Public Safety line increased by 1.3 %. There were no significant changes in this category.
• Public Works had a 12.3% increase in expenses. This increase was due to an increase in street
maintenance expenditures.
• The Development Services department decreased by $802, or 15.4 %. The decrease was caused
because of reduced staffing and the reduced use of outside consultants.
• Community Services increased by $9,018 or 55.7 %. The increase was the net result of the
Supplemental Educational Augmentation Revenue Fund payment and the related reduction in tax
shift and tax increment payments.
• Interest and fiscal charges decreased by 10.3 %. The previous fiscal year included the payment of
approximately $1.5 million of accrued but not recorded interest on several interfund loans.
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Table 2
City of Poway Changes in Net Assets
(in Thousands)
Governmental Business
Activities Activities
2010 2009 2010 2009
Revenues:
Program revenues
Total
2010 2009
Charges for services $
10,858
$ 11,809
$ 26,533
$ 25,367
$ 37,391
$ 37,176
Operating grants
471
148
(471)
(148)
-
-
and contributions
7,615
5,826
-
-
7,615
5,826
Capital grants
(6,897)
2,687
5,506
6,152
(1,391)
8,839
and contributions
1,247
2,110
4,226
-
5,473
2,110
General revenues:
57,506 $
64,403
$ 79,109
$ 73,603
$ 136,615
$ 138,006
Property taxes
51,527
51,191
-
-
51,527
51,191
Other taxes
12,472
12,934
-
-
12,472
12,934
Other
9,539
10,486
967
7,642
10,506
18,128
Total revenues
93,258
94,356
31,726
33,009
124,984
127,365
Expenses:
General government
23,948
23,261
23,948
23,261
Public safety
19,475
19,228
19,475
19,228
Public works
12,596
11,214
12,596
11,214
Development Svcs
4,424
5,226
4,424
5,226
Community Svcs
25,214
16,196
25,214
16,196
Interest and charges
14,969
16,692
14,969
16,692
Water
18,226
18,698
18,226
18,698
Sewer
7,523
8,011
7,523
8,011
Total expenses
100,626
91,817
25,749
26,709
126,375
118,526
Change in net assets
before transfers
(7,368)
2,539
5,977
6,300
(1,391)
8,839
Transfers
471
148
(471)
(148)
-
-
Change in net assets
after transfers
(6,897)
2,687
5,506
6,152
(1,391)
8,839
Net assets - 7/1
64,403
61,716
73,603
67,451
138,006
129,167
Net assets - 6/30 $
57,506 $
64,403
$ 79,109
$ 73,603
$ 136,615
$ 138,006
Fiscal Year 2010
Governmental Activities
(Graphic representation of Table 2 in percentages)
Capital
erating
rants
8%
Other
1% J
Community
Services
25%
Development
Services
4%
Interest on
Long Term
Debt
15%
Net Cost of Governmental Activities
The City's programs include: General Government, Public Safety, Public Works, and Community Services.
Each program's net cost (total cost less revenues generated by the activities) is presented on Table 2.1. The
net cost shows the extent to which the City's general taxes support each of the City's programs.
Table 2.1
Net Cost of Governmental Activities
(in Thousands)
Total Cost Program
Net Cost
of Services Revenues
of Services
2010 2009 2010 2009
2010
2009
General government $ 23,948 $ 23,261 $ 1,037 $ 819
$ (22,911) $
(22,442)
Public safety 19,475 19,228 2,323 2,792
(17,152)
(16,436)
Public works 12,596 11,214 9,196 8,943
(3,400)
(2,271)
Development services 4,424 5,226 1,635 1,716
(2,789)
(3,510)
Community services 25,214 16,196 5,529 5,475
(19,685)
(10,721)
Interest and fiscal chgs 14,969 16,692 - -
(14,969)
(16,692)
Totals $ 100,626 $ 91,817 $ 19,720 $ 19,745
$ (80,906) $
(72,072)
8
$30,000
$20,000
$10,000
$0
($10,000)
($20,000)
($30,000)
Total Cost of Services, Program Revenues & Net Cost
Governmental Activities (in Thousands)
Total resources available during the year to finance governmental operations were $158,132 consisting of
Net Assets at July 1, 2009, of $64,403, Program Revenues of $19,720, General Revenues of $73,538 and $471
of Transfers. Total Governmental Activities during the year were $100,626; thus Net Assets decreased by
$6,894 to $57,506. As noted elsewhere the material large unusual item that contributed to this decrease was
the Redevelopment Agency's $13.7 million Supplemental Educational Revenue Augmentation Fund
payment. As discussed previously, sales tax and investment earnings decreases also contributed to the
reduction in Net Assets.
Business -Type Activities
Net assets of the Proprietary Funds (Business -Type activities) at June 30, 2010, as reflected in Table 1 were
$79,109. As shown in Table 2, program revenues were $30,759, while the cost of providing all Proprietary
(Business -Type) Activities this year was $25,749 resulting in an increase of $5,010. The additional $496 of
other revenues and transfers resulted in a Net Assets increase of $5,506 or 7.5 %.
Table 2.2
Net Cost of Business Activities
(in Thousands)
Total Cost Program Net Cost
of Services Revenue of Services
2010 2009 2010 2009 2010 2009
Water $ 18,226 $ 18,698 $ 21,918 $ 16,715 $ 3,692 $ (1,983)
Sewer 7,523 8,011 8,841 8,652 1,318 641
Totals $ 25,749 $ 26,709 $ 30,759 $ 25,367 $ 5,010 $ (1,342)
Total Cost of Services, Program Revenues & Net Cost — Business Activities (in thousands)
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Water Sewer
9
Major Funds Budgetary Highlights
General Fund: '
The final appropriations for the City's General Fund at year -end were $3,741 more than actual expenditures
prior to other financing uses. The largest component of the budget to actual variance was principally in the
Capital Outlay category where several projects were budgeted but are not yet complete. All of the
ependiture categories were under budget primarily due the City's across the board efforts to control '
expenditures. Part of the General Government category under budget was also due to the continued
refinement of the city -wide cost allocation model which resulted in a revised allocation of general
government expenses across a broader range of funds. Lower than expected overtime costs in Fire
Suppression also contributed to the Public Safety category's under budget variance. Actual revenues
compared favorably to the final budget resulting in a $1,531 positive variance (excluding other financing
sources). The major variances were in Taxes, Intergovernmental, Use of Money and Property and Other
Revenue. The City had budgeted conservatively in the Taxes Category for both Property and Sales Taxes,
and both revenue sources outperformed the City's expectations. The Intergovernmental category primarily
was higher because of additional disaster reimbursements. Interest rates continued to remain at near
historic lows so the Use of Money and Property category did end up under budget. The Other Revenue
category exceeded its budget because of an insurance payment for reimbursement of Witch Creek Fire
losses. During the fiscal year the City continued to produce quarterly budget updates in addition to its '
traditional midyear budget update in order enhance focus on the City's financial position and the current
factors that were affecting that position.
Housing Special Revenue Fund:
The slight decrease in this fund's fund balance is due to expenditures on various affordable housing
projects including rehabilitation work on the Oak Knoll Villas apartment complex that was purchased in
fiscal year 2007 -08 and Meadows Affordable Housing project that developed 33 for -sale affordable homes
for low and moderate income buyers.
City of Poway Redevelopment Agency Debt Service Fund:
The largest factor that contributed to the decrease in this fund's fund balance was the Agency's $13.7 '
million share of state's $1.7 billion shift of redevelopment funds to the Supplemental Educational Revenue
Augmentation Fund ( SERAF). Because the SERAF payment was considered in the calculation of the
Agency's tax sharing and owner participation payments there was a reduction of expenses. The net of this
activity resulted in the $6.7 million decrease in fund balance. The Agency is required to shift $2.8 million to
the SERAF in fiscal year 2010 -11. Further shifts of this nature will not be allowed because of the November '
2010 voter approval of Proposition 22 which protects these revenues from future take - aways.
Redevelopment Area Capital Project Funds: I
The significant decrease in this fund's fund balance is because there was no new significant funding, such
as from the issuance of tax allocation bonds, and the proceeds from previous bond funds continued to be I
spent on projects.
Other Governmental funds:
There was no unusual activity in the Other Governmental grouping of funds during the fiscal year. The
Storm Water Management Fund's negative fund balance was reduced by approximately 25% and is
expected to recoup the remainder of its negative fund balance over the next several years. ,
10 1
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the City are those assets that are used in the performance of City functions. Capital
Assets include land, buildings, park facility improvements, infrastructure, equipment and vehicles.
Construction in Progress from governmental activities increased by $6.0 due to the purchase of new fire
apparatus $1.0, park improvements $2.7 and various infrastructure projects $2.3. Improvements from
business activities increased by $5.0 due to additions for water and sewer pipeline projects. Depreciation
on capital assets is recognized in the Government -Wide financial statements. (See Table 4 & Note III, C to
the financial statements)
Table 4
City- of Poway Capital Assets at Year -End
et of Depreciation)
17a Thousands)
s)
Governmental Business
Activities Activities
Taal
2010 200i 2010 2009
Land 72,902 $ 71,520 $ 77 77 72,979 71,597
Buildings 40,654 49,247 5,954 6,420 46,608 47,667
Improvements 5,173 5,410 31,132 26,054 36,305 51,464
lnfrastucture 00,651 63,1`152 - - 60,651 63,6152
Equip & Vehicles 7,342 6,902 986 1,019 0,328 7,929
Construction in Prog 12,344 6,303 6,739 7,126 19,083 13,429
$ 199,1 $ 195,034 $ 44,588 $ 40,&% $ 243,954 $ 235,730
Debt
At year -end, the City had $287,226 in governmental -type debt and $1,663 in Proprietary debt. During the
year no bonds were refunded so, therefore, the decrease in bond balances were due to scheduled principal
payments and premium/ discount amortizations. The Loans Payable balance increased because accrued
interest related to the operating covenant with AZ Poway, LLC (dba Mossy Nissan) was greater than the
payment made under the covenant. Finally, the Compensated Absences balance decreased as employees
used more time off for compensated absences than was accrued, but again there was no unusual activity
related to the decrease. See the Notes to the Basic Financial Statements, number 5, Long -term Debt for
additional information.
r
Table 5
CHI of Poway Outstanding Debt at Year -End
an Thousands)
Governmental Business
Activities Activities
2010 2009 2010 2009
$ 234,987 $ 240,801 - -
48,454 50,068 - -
- - $ 1,381 $ 1,565
2,401 2;283 - -
1,384 11402 252 315
Total
.;
48,454
40.
1,666
2009
240,801
50,068
1,568
2,283
1,717
$ 287,2261 $ 294,554 $ 1,663 $ 1,883 $ 258,889 $ 296,437
11
Tax Allocation Bonds
'
Certificates of Participation
Revenue Bonds
Loans Payable
Cornnp Absences
Total
r
Table 5
CHI of Poway Outstanding Debt at Year -End
an Thousands)
Governmental Business
Activities Activities
2010 2009 2010 2009
$ 234,987 $ 240,801 - -
48,454 50,068 - -
- - $ 1,381 $ 1,565
2,401 2;283 - -
1,384 11402 252 315
Total
.;
48,454
40.
1,666
2009
240,801
50,068
1,568
2,283
1,717
$ 287,2261 $ 294,554 $ 1,663 $ 1,883 $ 258,889 $ 296,437
11
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
In considering the City Budget for fiscal year 2010 -2011, the City Council and management continued to be
cautious because of the continued slow housing market, lower sales tax receipts primarily related to
automobile sales and a continued concern over the State's long -term budget situation. General Fund
revenue is expected to decrease approximately 3.3% from the fiscal year 2009 -2010 revenue budget. This
decrease mainly occurred because of budgeted decreases for Sales Taxes, Development Fees and Safety
Services Fees. General Fund expenditures are budgeted to decrease 2.9 %. Many of the reductions began
during fiscal year 2009 -2010 with additional decreases included in the fiscal year 2010 -11 budget. While
there were no individually significant items both the Development Services and Safety Services
departments were able to reduce their budgets. The reduction in the Development Services department
budget correlates with the departments decreased revenues, and the reduction in the Safety Services
department budget was primarily based on fiscal year 2009 -10 savings that were considered when
preparing the fiscal year 2010 -11 budget. The City continues to monitor the local, state and national
economic situation and while it does not currently anticipate any necessary significant changes to the
budget, but it is prepared to address those situations if they arise.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
I
k
C�
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with '
a general overview of the City's finances and to show the City's fiduciary responsibility for the funds it
receives. If you have questions about this report or need additional financial information, contact the City's ,
Finance Department, at the City of Poway, 13325 Civic Center Drive, Poway, California 92064 or online:
http://www.ci.poway.org
7
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT -WIDE
FINANCIAL STATEMENTS
15
City of Poway
Statement of Net Assets
June 30, 2010
16
Primary Government
Governmental
Business -Type
Activities
Activities
Total
ASSETS
Current assets:
Cash and investments
$ 97,187,789
$ 22,145,665 $
119,333,454
Cash and investments with fiscal agents
22,974,561
280,450
23,255,011
Receivables:
Taxes
3,443,207
-
3,443,207
Accounts
1,086,514
4,805,221
5,891,735
Interest
479,053
-
479,053
Due from other governments and agencies
2,024,131
-
2,024,131
Prepaid items
33,811
-
33,811
Inventories
94,085
1,527,612
1,621,697
Total current assets
127,323,151
28,758,948
156,082,099
Noncurrent assets:
Lease receivable
11,250
-
11,250
Notes receivable
34,427,496
-
34,427,496
Internal balances
(8,069,477)
8,069,477
-
Loans to Business Park Fiduciary Fund
-
1,000,000
1,000,000
Deferred charges, net
547,183
34,329
581,512
Capital assets:
Nondepreciable assets
85,245,979
6,816,229
92,062,208
Depreciable assets, net
113,819,364
38,072,369
151,891,733
Total capital assets
199,065,343
44,888,598
243,953,941
Total noncurrent assets
225,981,795
53,992,404
279,974,199
Total assets
353,304,946
82,751,352
436,056,298
16
City of Poway
Statement of Net Assets, Continued
June 30, 2010
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Accrued interest payable
Deposits
Long -term debt - due within one year
Total current liabilities
Noncurrent liabilities:
Long -term debt - due in more than one year
Total noncurrent liabilities
Total liabilities
NET ASSETS
Investments in capital assets, net of related debt
Restricted for:
Special revenue:
Streets
Drainage
Maintenance districts
Poway Royal
Grants
Miscellaneous
Affordable housing
Debt service
Capital improvement projects
Permanent:
Expendable
Nonexpendable
Total restricted
Unrestricted
Total net assets
See accompanying Notes to Basic Financial Statements.
17
Primary Government
Governmental Business -Type
Activities Activities Total
$ 5,948,467 $ 1,914,844 $ 7,863,311
923,450 - 923,450
1,701,853 12,692 1,714,545
- 52,412 52,412
7,704,221 250,881 7,955,102
279,520,973
1,411,705
280,932,678
279,520,973
1,411,705
280,932,678
295,798,964
3,642,534
299,441,498
46,412,443
43,226,012
89,638,455
3,324,782
-
3,324,782
2,468,446
-
2,468,446
6,168,813
-
6,168,813
4,235,407
-
4,235,407
2,203,472
-
2,203,472
1,114,766
-
1,114,766
17,638,926
-
17,638,926
17,856,756
280,450
18,137,206
22,377,070
-
22,377,070
321,127
-
321,127
660,000
-
660,000
78,369,565
280,450
78,650,015
(67,276,026)
35,602,356
(31,673,670)
$ 57,505,982 $
79,108,818
$ 136,614,800
City of Poway
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2010
See accompanying Notes to Basic Financial Statements.
18
Program Revenues
Charges
Operating
Capital
Total
for
Grants and
Grants and
Program
Functions/Programs
Expenses
Services
Contributions
Contributions
Revenues
Primary government:
Governmental activities:
General government
$ 23,947,500
$ 91,745
$ 945,753
$ -
$ 1,037,498
Public safety
19,475,481
2,131,729
190,915
-
2,322,644
Public works
12,595,756
4,479,896
4,711,968
4,097
9,195,961
Development services
4,423,865
1,332,714
302,467
-
1,635,181
Community services
25,213,955
2,821,718
1,464,374
1,242,458
5,528,550
Interest and fiscal charges
14,969,311
-
-
-
-
Total governmental activities
100,625,868
10,857,802
7,615,477
1,246,555
19,719,834
Business -Type activities:
Water
18,226,463
17,881,695
-
4,036,248
21,917,943
Sewer
7,522,634
8,651,681
-
189,389
8,841,070
Total business -type activities
25,749,097
26,533,376
-
4,225,637
30,759,013
Total primary government
$ 126,374,965
$ 37,391,178
$ 7,615,477
$ 5,472,192
$ 50,478,847
See accompanying Notes to Basic Financial Statements.
18
City of Poway
Statement of Activities and Changes in Net Assets, Continued
For the year ended June 30, 2010
Net (Expense) Revenue and
Changes in Net Assets
19
Primary Government
Governmental
Business -Type
Functions/Programs
Activities
Activities
Total
Primary government:
Governmental activities:
General government
$ (22,910,002)
$ - $
(22,910,002)
Public safety
(17,152,837)
-
(17,152,837)
Public works
(3,399,795)
-
(3,399,795)
Development services
(2,788,684)
-
(2,788,684)
Community services
(19,685,405)
-
(19,685,405)
Interest and fiscal charges
(14,969,311)
-
(14,969,311)
Total governmental activities
(80,906,034)
-
(80,906,034)
Business -Type activities:
Water
-
3,691,480
3,691,480
Sewer
-
1,318,436
1,318,436
Total business -type activities
-
5,009,916
5,009,916
Total primary government
(80,906,034)
5,009,916
(75,896,118)
General revenues-
Taxes:
Property taxes
51,526,758
-
51,526,758
Sales taxes
9,833,390
-
9,833,390
Motor vehicle license taxes
150,641
-
150,641
Transit occupancy taxes
367,434
-
367,434
Franchise taxes
1,491,231
-
1,491,231
Other taxes
629,589
-
629,589
Total taxes
63,999,043
-
63,999,043
Investment earnings
8,287,516
463,177
8,750,693
Miscellaneous
1,251,844
503,595
1,755,439
Transfers
470,498
(470,498)
-
Total general revenues and transfers
74,008,901
496,274
74,505,175
Change in net assets
(6,897,133)
5,506,190
(1,390,943)
Net assets - beginning of year
64,403,115
73,602,628
138,005,743
Net assets - end of year
$ 57,505,982
$ 79,108,818 $
136,614,800
19
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J
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I FUND FINANCIAL STATEMENTS
1 Governmental Fund Financial Statements
Proprietary Fund Financial Statements
' Fiduciary Fund Financial Statements
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GOVERNMENTAL FUND
FINANCIAL STATEMENTS
23
City of Poway
Balance Sheet
Governmental Funds
June 30, 2010
ASSETS
Cash and investments
Receivables:
Taxes
Notes
Accounts
Interest
Lease
Due from other funds
Due from other governments
Prepaid items
Inventories, at cost
Advances to other funds
Restricted assets:
Cash and investments with fiscal agents
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Deferred revenue
Advances from other funds
Total liabilities
Fund Balances:
Reserved
Unreserved:
Designated for:
General fund
Special revenue funds
Capital projects funds
Undesignated
Special revenue funds
Total fund balances
Total liabilities and fund balances
Major Funds
Low and
City of Poway
562,639
Moderate
Redevelopment
Redevelopment
Income Housing
Agency
Area
Special Revenue
Debt Service
Capital Project
General Fund
Fund
Fund
$ 30,539,160 $ 17,392,598 $
2,706,936 144,267
27,243 -
362,981 130,540
442,083 -
864,871 -
497,370 -
33,811 -
94,085 -
4,305,762 -
8,856,659 $
13,820,547
562,639
14,427
26,720,000
7,680,253
33,688
3,229
73 569,511
-
$ 39,874,302 $ 17,667,405 $ 57,643,573 $ 22,087,967
$ 2,551,493 $ 28,479 $
923,450 -
26,913 -
4,647,709 17,638,926
2,108,439 $ 575,242
26,720,000 -
YJ, /VY,J /J J /J,LYL
13,938,600 10,145,626
31,724,737 - - -
11,367,099
36,372,446 17,638,926 13,938,600 21,512,725
See accompanying Notes to Basic Financial Statements.
24
Other Total
Governmental Governmental
21,042,293 $ 91,651,257
14,938
3,443,207
-
34,427,496
592,993
1,086,514
53
479,053
11,250
11,250
-
864,871
957,177
2,024,131
-
33,811
-
94,085
3,737,676
8,043,438
1;504,047
22,974,561
$ 27,860,427 $
165,133,674
442,042 $
5,705,695
-
923,450
864,871
864,871
37,819
26,784,732
1,236,381
16,112,915
2,581,113 50,391,663
10,960,747 57,331,608
- 31,724,737
8,405,474 8,405,474
- 11,367,099
5,913,093 5,913,093
25,279,314 114,742,011
ZP L /,00U,411 zrl 1bJ,133,b /4
25
City of Poway
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2010
Total Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Capital assets used in governmental activities were not financial resources and therefore were not reported in
governmental funds.
Nondepreciable
Depreciable, net of accumulated depreciation
Total capital assets
Deferred charges, such as bond issuance costs from issuing debt, were expenditures in the fund financial statements but
were deferred and subject to capitalization and amortization on the Government -Wide Statement of Net Assets.
i
1
$ 114,742,011 ,
Long -term liabilities were not due and payable in the current period and therefore were not reported in the governmental
funds.
Long -term liabilities - due within one year (7,704,221)
Long -term liabilities - due in more than one year (net of $30,798 reported in Internal Service Fund) (279,490,175)
Total long -term liabilities (287,194,396)
Interest payable on long -term debt did not require current financial resources. Therefore, interest payable was not reported
as a liability in Governmental Funds Balance Sheet. (1,701,853)
Deferred revenues recorded in governmental fund financial statements resulting from activities in which revenues were
earned but funds were not available were recognized as revenues in the Government -Wide Financial Statements.
Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets
and liabilities of the internal service funds were included in governmental activities in the Government -Wide Statement of
Net Assets.
Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
26
$ 57,505,982
1
1
1
1
1
,
85,245,979
113,819,364
199,065,343
547,183
'
Long -term liabilities were not due and payable in the current period and therefore were not reported in the governmental
funds.
Long -term liabilities - due within one year (7,704,221)
Long -term liabilities - due in more than one year (net of $30,798 reported in Internal Service Fund) (279,490,175)
Total long -term liabilities (287,194,396)
Interest payable on long -term debt did not require current financial resources. Therefore, interest payable was not reported
as a liability in Governmental Funds Balance Sheet. (1,701,853)
Deferred revenues recorded in governmental fund financial statements resulting from activities in which revenues were
earned but funds were not available were recognized as revenues in the Government -Wide Financial Statements.
Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets
and liabilities of the internal service funds were included in governmental activities in the Government -Wide Statement of
Net Assets.
Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
26
$ 57,505,982
1
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City of Poway
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2010
See accompanying Notes to Basic Financial Statements.
28
Major Funds
Low and
City of Poway
Moderate
Redevelopment
Redevelopment
Income Housing
Agency
Area
Special Revenue
Debt Service
Capital Projects
General
Fund
Fund
Fund
REVENUES:
Taxes
$ 23,841,209
$ -
$ 39,377,603
$ -
Licenses and permits
433,517
-
-
-
Intergovernmental
483,838
-
-
-
Charges for services
1,013,569
-
-
-
Fines and forfeitures
750,551
-
-
Use of money and property
2,010,788
349,507
3,227,619
741,722
Developer fees
3,436,091
-
-
-
Assessment levied
-
-
-
Other revenues
965,071
326,391
-
888,453
Total revenues
32,934,634
675,898
42,605,222
1,630,175
EXPENDITURES:
Current:
General government
1,491,779
1,141,648
-
3,422,921
Public safety
18,812,864
-
-
-
Public works
2,395,310
-
-
-
Development Services
4,475,943
-
-
-
Community services
4,431,417
-
-
-
Capital outlay
5,036,287
7,037,128
-
12,267,894
Debt service:
Principal
-
-
6,335,000
-
Interest and fiscal charges
-
-
13,902,459
-
Tax increment reimbursement
-
-
2,380,740
-
Tax shift
-
-
13,700,882
-
Total expenditures
36,643,600
8,178,776
36,319,081
15,690,815
REVENUES OVER (UNDER) EXPENDITURES
(3,708,966)
(7,502,878)
6,286,141
(14,060,640)
OTHER FINANCING SOURCES (USES):
Proceeds from loans
-
-
161,049
-
Transfers in
4,038,976
7,881,168
2,190,372
6,999,555
Transfers out
(1,671,709)
(1,741,327)
(15,329,768)
-
Total other financing sources (uses)
2,367,267
6,139,841
(12,978,347)
6,999,555
NET CHANGE IN FUND BALANCE
(1,341,699)
(1,363,037)
(6,692,206)
(7,061,085)
FUND BALANCES:
Beginning of year
37,714,145
19,001,963
20,630,806
28,573,810
End of year
$ 36,372,446
$ 17,638,926
$ 13,938,600
$ 21,512,725
See accompanying Notes to Basic Financial Statements.
28
Other Total
Governmental Governmental
$ 4,193,036 $
67,411,848
-
433,517
2,510,167
2,994,005
2,126,705
3,140,274
-
750,551
5,850,392
12,180,028
275,487
3,711,578
1,886,300
1,886,300
48,747
2,228,662
16,890,834
94,736,763
-
6,056,348
153,516
18,966,380
7,548,371
9,943,681
-
4,475,943
4,617,566
9,048,983
3,298,530
27,639,839
815,000 7,150,000
1,041,307 14,943,766
- 2,380,740
- 13,700,882
(583,456) (19,569,799)
- 161,049
1,577,690 22,687,761
(1,199,412) (19,942,216)
(205,178) (16,663,205)
25,484,492 131,405,216
$ 25,279,314 $ 114,742,011
29
City of Poway
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2010
Net Change in Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Activities were different because:
Governmental funds report capital outlay as expenditures. However, in the Government -Wide Statement of
Activities and Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as
depreciation expense. This is the amount of capital assets recorded in the current period.
Depreciation was reported in the Government -Wide Statement of Activities and Changes in Net Assets, but they
did not require the use of current financial resources. Therefore, depreciation and amortization expense was not
reported as expenditures in governmental funds.
Compensated absences were reported in the Government -Wide Statement of Activities and Changes in Net
Assets, but it did not require the use of current financial resources. Therefore, compensated absences were not
reported as expenditures in governmental funds. This amount represent the change in compensated absences
from prior year.
Issuance costs from issuing debt were expenditures at the fund level but were deferred and subject to
capitalization and amortization on the statement of net assets.
Amortization of bond issuance costs
Proceeds from long -term debt provide current financial resources to governmental funds, but issuing debt
increases long -term liabilities in the Government -Wide Statement of Net Assets. Repayment of bond principal
was an expenditure in governmental funds, but the repayment reduces long -term liabilities in the Government -
Wide Statement of Net Assets.
Proceeds from loans
Repayment of contract and notes payable
Principal payment
Amortization on bond premium was reported in the Government -Wide Statement of Activities and Changes in
Net Assets, but it did not require the use of current financial resources. Therefore, amortization was not
reported as expenditures in governmental funds.
2003 Tax Allocation Bonds
2007 Tax Allocation Bonds
2003 Certificates of Participation
2005 Certificates of Participation
Interest expense on long -term debt was reported in the Government -Wide Statement of Activities and Changes
in Net Assets, but they did not require the use of current financial resources. This amount represents the change
in accrued interest from prior year.
Prior year accruals
Current year accruals
Revenues in the statement of activities that did not provide current financial resources are not reported as
revenues in the funds.
Internal service funds were used by management to charge the costs of certain activities, such as insurance and
fleet management, to individual funds. The net revenue of the internal service funds was reported with
governmental activities.
Change in Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
30
$ (16,663,205)
10,429,748
(6,399,098)
15,840
(23,834)
(161,049)
43,238
7,150,000
194,994
63,572
9,425
9,642
1,676,308
(1,701,853) (25,545)
(751,400)
(789,461)
$ (6,897,133)
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PROPRIETARY FUND
FINANCIAL STATEMENTS
31
City of Poway
Statement of Net Assets
Proprietary Funds
June 30, 2010
ASSETS
Current assets:
Cash and investments
Cash and investments with fiscal agents
Receivables:
Accounts
Inventories
Total current assets
Noncurrent assets:
Advances to other funds
Advances to Fiduciary Fund - Business Park
Deferred charges
Capital assets:
Nondepreciable
Depreciable
Less accumulated depreciation
Total net capital assets
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Deposits
Accrued interest payable
Long -term debt due within one year
Total current liabilities
Noncurrent liabilities:
Long -term debt due in more than one year
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total net assets
Major Funds
Water
Sewer
Governmental
Activities
Internal
Total Service Fund
$ 6,251,971
$ 15,893,694
$ 22,145,665 $ 5,536,532
280,450
-
280,450 -
3,187,953
1,617,268
4,805,221 -
1,516,305
11,307
1,527,612 -
11,236,679
17,522,269
28,758,948 5,536,532
2,606,354
5,463,123
8,069,477 -
-
1,000,000
1,000,000 -
34,329
-
34,329 -
6,121,791
694,438
6,816,229 -
50,103,624
34,083,152
84,186,776 -
(30,370,276)
(15,744,131)
(46,114,407) -
25,855,139
19,033,459
44,888,598 -
28,495,822
25,496,582
53,992,404 -
39,732,501
43,018,851
82,751,352 5,536,532
1,850,972
63,872
1,914,844
242,772
52,412
-
52,412
-
12,692
-
12,692
-
243,219
7,662
250,881
-
2,159,295
71,534
2,230,829
242,772
1,378,368
33,337
1,411,705
30,798
1,378,368
33,337
1,411,705
30,798
3,537,663
104,871
3,642,534
273,570
24,233,552
18,992,460
43,226,012
-
280,450
-
280,450
-
11,680,836
23,921,520
35,602,356
5,262,962
$ 36,I94,838 $
42,913,980 $
79,108,818 $
5,262,962
See accompanying Notes to Basic Financial Statements.
32
City of Poway
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the year ended June 30, 2010
OPERATING REVENUES:
Charges for services
Connection fees
Other
Total operating revenues
OPERATING EXPENSES:
Personnel services
Maintenance and operations
Cost of purchased water
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
Interest expense and fiscal charges
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE CONTRIBUTED CAPITAL AND TRANSFERS
CONTRIBUTED CAPITAL AND TRANSFERS:
Contributed capital
Transfers out
Total contributed capital and transfers
Change in net assets
NET ASSETS:
Beginning of year
End of year
See accompanying Notes to Basic Financial Statements.
33
Governmental
Activities
Major
Funds
Internal
Water
Sewer
Total
Service Fund
$ 17,846,328
$ 8,540,567
$ 26,386,895
$ 2,610,905
35,367
111,114
146,481
-
30,548
473,047
503,595
4,166
17,912,243
9,124,728
27,036,971
2,615,071
3,418,119
683,414
4,101,533
365,802
4,846,914
5,965,449
10,812,363
871,557
8,750,338
-
8,750,338
-
1,211,092
873,771
2,084,863
-
18,226,463
7,522,634
25,749,097
1,237,359
(314,220)
1,602,094
1,287,874
1,377,712
199,720
355,417
555,137
107,874
(91,960)
-
(91,960)
-
107,760
355,417
463,177
107,874
(206,460)
1,957,511
1,751,051
1,485,586
4,036,248
189,389
4,225,637
-
(288,759)
(181,739)
(470,498)
(2,275,047)
3,747,489
7,650
3,755,139
(2,275,047)
3,541,029
1,965,161
5,506,190
(789,461)
32,653,809
40,948,819
73,602,628
6,052,423
$ 36,194,838
$ 42,913,980
$ 79,108,818
$ 5,262,962
City of Poway
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from customers
Cash paid to employees for services
Cash paid to suppliers for goods or services
Others
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers out
Net cash provided (used) by noncapital financing activities
Governmental
Activities
Major Funds Internal
Water Sewer Total Service Fund
$ 17,074,377 $
8,593,335
$ 25,667,712 $
2,615,237
(3,672,768)
(743,582)
(4,416,350)
(368,451)
(13,595,584)
(6,126,715)
(19,722,299)
(662,594)
948,399
473,047
1,421,446
-
754,424
2,196,085
2,950,509
1,584,192
(288,759) (181,739) (470,498) (2,275,047)
(288,759) (181,739) (470,498) (2,275,047)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
(58,346)
(872,826)
166
Contributed capital
4,036,248
189,389
4,225,637
Acquisitions to capital assets
(5,569,534)
(707,616)
(6,277,150) -
Principal paid on long -term debt
53,040
40,999
94,039 -
Payment of interest and fees
(93,622)
-
(93,622) 107,874
Net cash provided (used) by capital and related financing activities
(1,573,868)
(477,228)
(2,051,096) 107,874
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income
Net cash provided (used) by investing activities
Net increase (decrease) in cash and investments
CASH AND INVESTMENTS:
Beginning of year
End of year
RECONCILIATION OF CASH AND INVESTMENTS
TO THE STATEMENT OF NET ASSETS
Cash and investments
Cash with investments with fiscal agents
Total cash and investments
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Deferred charges
Advances to other funds
Accounts payable
Deposits
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
199,720 355,417 555,137 -
199,720 355,417 555,137
(908,483) 1,892,535 984,052 (582,981)
7,440,904 14,001,159 21,442,063 6,119,513
$ 6,532,421 $ 15,893,694 $ 22,426,115 $ 5,536,532
6,251,971 15,893,694 22,145,665 5,536,532
280,450 - 280,450 -
$ 6,532,421 $ 15,893,694 $_22,426 ,115 $ 5,536,532
$ (314,220) $ 1,602,094 $ 1,287,874 $ 1,377,712
1,211,092 873,771 2,084,863 -
(814,480)
(58,346)
(872,826)
166
328,299
(1,741)
326,558
-
6,436
6,436
-
917,851
-
917,851
-
(333,067)
(159,525)
(492,592)
208,963
7,162
-
7,162
(254,649)
(60,168)
(314,817)
(2,649)
1,068,644
593,991
1,662,635
206,480
$ 754,424
$ 2,196,085
$ 2,950,509
$ 1,584,192
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See accompanying Notes to Basic Financial Statements.
34 '
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FIDUCIARY FUND
FINANCIAL STATEMENTS
' Agency funds are used to account for assets held by the City as an agent for individuals, private
organizations, other governments, and /or other funds.
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City of Poway
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2010
ASSETS
Cash and investments
Receivables:
Taxes
Accounts
Interest
Cash and investments with fiscal agent
Total assets
LIABILITIES
Accounts payable
Deposits
Due to bondholders
Advances from City of Poway
Total liabilities
See accompanying Notes to Basic Financial Statements.
36
Agency
$ 9,433,300
3,069
1,000,000
48,032
3,203,097
$ 13,687,498
$ 227,601
4,078,813
8,381,084
� 15,biS' /,4yiS
� NOTES TO BASIC
FINANCIAL STATEMENTS
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11 37
City of Poway
Notes to Basic Financial Statements
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Poway, California, (City) have been prepared in conformity '
with generally accepted accounting principles (GAAP) as applied to governmental agencies. The
Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing '
governmental accounting and financial reporting principles. The more significant of the City's accounting
policies are described below.
A. Financial Reporting Entity i
The City was incorporated December 1, 1980, under the general laws of the State of California. The City '
operates under a Council- Manager form of government and provides the following services: public
safety (police - through the County of San Diego, and fire), community services, engineering services,
planning services, public works, general administrative services, and capital improvements. '
As required by generally accepted accounting principles in the United States, these basic financial
statements present the City and its component units, entities for which the City is considered to be
financially accountable. The City is considered to be financially accountable for an organization if the '
City appoints a voting majority of that organization's governing body and either the City is able to
impose its will on that organization or there is a potential for that organization to provide specific
financial benefits to or impose specific financial burdens on the City. The City is also considered to be ,
financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City).
In certain cases, other organizations are included as component units if the nature and significance of ,
their relationship with the City are such that their exclusion would cause the City's financial statements
to be misleading or incomplete. Component units for which the City is considered financially
accountable are described below: '
Poway Redevelol ment Agency
The Poway Redevelopment Agency (Agency) was established on April 26, 1983 pursuant to the '
State of California Health and Safety Code, Section 33000 entitled "Community Redevelopment
Law ". Its purpose is to eliminate blighted areas by encouraging the development of residential,
commercial, industrial, recreational and public facilities. The Agency was included within the scope
of the reporting entity of the City because its governing body is composed in its entirety of council
members of the City. Separate financial statements can be obtained from the Poway Finance '
Department located at Poway City Hall.
Poway Public Financing Authority 1
The Poway Public Financing Authority (Authority) is a joint powers authority organized pursuant
to the State of California Government Code, Section 6500. The Authority exists under a joint '
Exercise of Power Agreement dated October 8, 1991, between the City and the Agency. Its purpose
is to assist in financing and refinancing projects for the benefit of the City and the Agency. Separate
financial statements are not prepared. '
38 1
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
i
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
' B. Basis of Accounting and Measurement Focus
The accounting policies of the City conform to generally accepted accounting principles in the United
States for local governmental units. The accounts of the City are organized on the basis of funds, each of
which is considered a separate accounting entity. The operations of each fund are accounted for by
providing a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity,
revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and
accounted for in individual funds based upon the purpose for which they are to be spent and means by
which spending activities are controlled.
' Government - Wide and Fund Financial Statements
The City's Government -Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These statements present summaries of governmental and
business -type activities for the City accompanied by a total column.
These basic financial statements are presented on an "economic resources" measurement focus and the
accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets,
as well as infrastructure assets, and long -term liabilities, are included in the accompanying Statement of
Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which the liability is incurred.
' Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
' . Operating grants and contributions
• Capital grants and contributions
' Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. All internal balances in the Statement of Net Assets have been
eliminated except those representing balances between the governmental activities and the business-
, type activities, which are presented as internal balances and eliminated in the total primary government
column. In the Statement of Activities, internal service fund transactions have been eliminated;
however, those transactions between governmental and business -type activities have not been
eliminated. The following interfund activities have been eliminated:
• Due to and from other funds
• Advances to and from other funds
• Transfers in and out
The City applies all applicable GASB pronouncements (including all NCGA Statements and
' Interpretations currently in effect) as well as the following pronouncements issued on or before
November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements:
Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles
Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the committee on Accounting
Procedure. The City applies all applicable FASB Statements and Interpretations issued after November
30,1989, except those that conflict with or contradict GASB pronouncements.
' 39
City of Poway '
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued 1
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, '
Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund
balances as presented in these statements to the net assets presented in the government -wide financial
statements. The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or "current financial resources" measurement '
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues
are recognized in the accounting period in which they become both measurable and available to finance
expenditures of the current period. '
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days
after year -end) are recognized when due. The primary revenue sources, which have been treated as ,
susceptible to accrual by the City, are real and personal property tax, other local taxes, franchise fees,
forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and
federal grants and subventions. Expenditures are recorded in the accounting period in which the '
related fund liability is incurred.
Deferred revenues arise when potential revenues do not meet both the "measurable" and "available"
criteria for recognition in the current period. Deferred revenues also arise when the government
receives resources before it has a legal claim to them, as when grant monies are received prior to
incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are ,
met or when the government has a legal claim to the resources, the deferred revenue is removed from
the balance sheet and revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds: '
The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
The Low and Moderate Income Housing Special Revenue Fund is used to account for funds ,
restricted for low and moderate income housing financial activity.
The City of Poway Redevelopment Agency Debt Service Fund is used to account for the
accumulation of resources for, and the payment of principal, interest, and related costs of the debt.
The Redevelopment Agency Capital Project Fund is used to account for the financial resources to
be used for the acquisitioned construction of major capital facilities (other than those financed by
proprietary funds).
40 ,
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues,
Expenses and Changes in Net Assets, and a Statement of Cash Flows for all proprietary funds.
A separate column representing internal service funds is also presented in these statements. However,
internal service balances and activities have been combined with the governmental activities in the
government -wide financial statements.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included
on the Statement of Net Assets. The Statement of Revenues, Expenses and Change in Fund Net Assets
presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses
are those expenses that are essential to the primary operations of the fund. All other expenses are
reported as nonoperating expenses.
The City reports the following major proprietary funds:
The Water Enterprise Fund is used to account for the provision of water services to the residents of
the City. All activities necessary to provide such services are accounted for in this fund, including,
but not limited to administration, operations, maintenance, financing and related debt service, and
billing and collection.
The Sewer Enterprise Fund is used to account for the provision of sewer services to the residents of
the City. All activities necessary to provide such services are accounted for in this fund, including,
but not limited to administration, operations, maintenance, financing and related debt service, and
billing and collection.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets. The City's fiduciary funds
represent agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations.
41
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration. Encumbrances outstanding at year -end are
reported as reservations of fund balances and do not constitute GAAP basis expenditures or liabilities
because the commitments will be honored during the subsequent year. The commitments will be re-
appropriated and honored in the subsequent year.
D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and highly
liquid investments held with financial institutions, a fiscal agent, and in a pooled account with the State,
to be cash equivalents.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, highly liquid market investments with maturities of one year or less at time
of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is
used as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF) which has invested a portion of the pooled funds in structured notes and asset -
backed securities. LAIF's investments are subject to credit risk with the full faith and credit of the State
of California collateralizing these investments. In addition, these Structured Notes and Asset - Backed
Securities are subject to market risk as to change in interest rates.
In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of
GASB Statement No. 3), the City adheres to certain disclosure requirements, if applicable for deposit and
investment risk are specified for the following areas:
Interest Rate Risk
Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
Foreign Currency Risk
The cash flow statements require presentation of "cash and cash equivalents." For the purposes of the
statement of cash flows, the City considers all proprietary fund pooled cash and investments as "cash
and cash equivalents," as such funds are available to the various funds as needed. With respect to cash
and investments with fiscal agents, the City considers all investments with an original maturity of less
than three months to be cash equivalents.
42
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
' E. Interfund Transactions
Activity between funds that are representative of lending/ borrowing arrangements outstanding at the
' end of the fiscal year are referred to as "due to /from other funds' (i.e., current portion of interfund
loans). Any residual balances outstanding between the governmental activities and business -type
activities are reported in the governmental -wide financial statements as "interfund balances."
F. Inventories
Inventories within the various fund types consist of water, materials and supplies which are valued at
cost on a first -in, first -out basis. Reported expenditures reflecting the purchase of supplies have been
restated to reflect the consumption method of recognizing inventory- related expenditures. A
reservation of fund balance has been reported in the governmental funds to show that inventories do
not constitute "available spendable resources," even though they are a component of net current assets.
G. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, streets,
sidewalks, medians and storm drains), are reported in the applicable governmental or business -type
activities in the Government -Wide Financial Statements. City policy has set the capitalization threshold
for reporting capital assets at $5,000. Capital assets are valued at historical cost or estimated historical
cost if actual historical cost was not available. Donated assets are valued at their estimated fair market
value on the date donated.
Depreciation is recorded on a straight -line basis over estimated useful lives of the assets as follows:
Buildings 10 -50 years
Buildings improvements 10 -100 years
Furniture and Equipment 5 -20 years
Infrastructure 20 -50 years
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic
Financial Statements and Management's Discussion and Analysis for State and Local Government,
which requires the inclusion of infrastructure capital assets in local governments' basic financial
statements. In accordance with GASB Statement No. 34, the City has included the value of all
infrastructure in its Basic Financial Statements.
The City defines infrastructure as the basic physical assets that allow the City to function. These assets
include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. Each major
infrastructure system can be divided into subsystems. For example the street system can be subdivided
into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These
subsystems are not delineated in the basic financial statements. The appropriate operating department
maintains information regarding the subsystems.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
on construction - related debt incurred during the period of construction for business -type and
proprietary fund assets is capitalized as a cost of the constructed assets. Capital assets acquired under
capital lease are capitalized at the net present value of the total lease payments.
43
City of Poway '
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Capital Assets, Continued '
For infrastructure systems, the City elected to use the "Basic Approach" as defined by GASB Statement
No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure ,
and property as of June 30, 2006. This appraisal determined the original costs, which are defined as the
actual cost to acquire new property in accordance with market prices at the time of first
construction/ acquisition. Original costs were developed in one of three ways: (1) historical records; '
(2) standard unit costs appropriate for the construction/ acquisition date; or (3) present cost indexed by
a reciprocal factor of the price increase from the construction/ acquisition date to the current date. The
accumulated depreciation, defined as the total depreciation from the date of construction/ acquisition to '
the current date on a straight line, unrecovered cost method was computed using industry accepted life
expectancies for each infrastructure subsystem. The book value was then computed by deducting the
accumulated depreciation from the original cost. '
Capital Assets Acquired Under Lease Purchase Contracts
The long -term principal portion of debt on non - proprietary capital assets acquired through lease
purchase contracts is accounted for in the government -wide financial statements as "capital lease '
obligations." A capital asset is recorded at the net present value of total lease payments in the
government -wide financial statements.
L Compensated Absences '
Government -Wide Financial Statements
For governmental and business -type activities, compensated absences are recorded as incurred and the '
related expenses and liabilities are reported.
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is
the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather
than currently available financial resources. In proprietary funds, compensated absences are expensed
to the various funds in the period they are earned, and such fund's share of the unpaid liability is
recorded as a long -term liability of the fund. Vested or accumulated compensated absences are
recorded in proprietary funds as an expense and liability of those funds as the benefits accrue to
employees.
J. Long -Term Debt
Government -Wide Financial Statements
Long -term debt and other long -term obligations are reported as liabilities in the appropriate activities.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of applicable premium or
discount. Issuance costs are reported as deferred charges.
Fund Financial Statements
The governmental fund financial statements do not present long -term debt but are shown in the
Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net
Assets.
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' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
' K. Net Assets
' Government -Wide Financial Statements
Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated
' depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or
improvement of the assets.
' Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or
regulations of other governments.
Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in
capital assets, net of related debt" or "restricted net assets."
0
Fund Financial Statements
Reservations represent those portions of fund equity which are not appropriable for expenditure or
which are legally segregated for specific future use. Designated fund balances represent tentative plans
for future use of financial resources. Undesignated fund balance indicates that portion of the fund
balance which is available for appropriation in future periods.
L. Use of Restricted and Unrestricted Net Assets
When an expense is incurred for purposes for which both restricted and unrestricted net assets are
available, the City's policy is to apply restricted net assets first.
M. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting
principles in the United States (GAAP) requires management to make estimates and assumptions that
affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the basic financial statements and the related reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates. Management
believes that the estimates are reasonable.
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized
investments of all funds. This pooled cash is invested by the City Treasurer to enhance earnings. The
pooled interest earned is allocated to the funds based on average month -end cash balances of the
various funds.
11 45
City of Poway
Notes to Basic Financial Statements, Continued
'
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
2010:
'
The following is a summary of cash and investment at June 30,
Government -Wide
Statement of Net Assets
'
Fiduciary Funds
Governmental Business -Type
Statement of
Activities Activities
Net Assets
Total
'
Cash and investments $ 97,187,789 $ 22,145,665
$ 9,433,300
$ 128,766,754
Cash and investments with fiscal agents 22,974,561 280,450
Total $ 120,162,350 $ 22,426,115
3,203,097
26,458,108
$ 155,224,862
,
$ 12,636,397
Cash, cash equivalents, and investments consisted of the following at June 30, 2010:
Cash on hand $ 7,650
Demand deposits 4,338,144
'
Investments 150,879,068
Total cash and investments $ 155,224,862
'
A. Cash Deposits I
The carrying amounts of the City's demand deposits were $4,338,144 at June 30, 2010. Bank balances at
June 30, 2010, were $4,525,318 which were fully insured or collateralized with securities held by the I
pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure
the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in '
this manner shall have the effect of perfecting a security interest in such collateral superior to those of a
general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California '
law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a
value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash
deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The
City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to '
be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled
cash and investments is allocated on an accounting period basis to the various funds based on the '
period -end cash and investment balances. Interest income from cash and investments with fiscal agents
is credited directly to the related fund.
46 1
' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
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2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
B. Investments
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies
certain provisions of the California Government Code (or the City's investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does
not address investments of debt proceeds held by bond trustee that are governed by the provisions of
debt agreements of the City, rather than the general provisions of the California Government Code or
the City's investment policy.
Authorized Maximum
Investment Type Maturity
Maximum Maximum
Percentage of Investment in
Portfolio* One Issuer
U.S. Treasury Obligation
5 years
None
None
U.S. Agency Securities
5 years
75%
25%
Bankers' Acceptances
180 days
40%
5%
Medium -Term and Corporate Notes
5 years
30%
5%
Money Market Mutual Funds
N/A
20%
10%
Mortgage Backed Securities
5 years
20%
None
Asset Back Securities
5 years
20%
None
Commercial Paper
270 days
25%
3%
Negotiable Certificates of Deposit
5 years
30%
5%
Local Agency Investment Fund (LAIF)
N/A
None
None
County of San Diego Investment Pool
N/A
None
None
CalTRUST Joint Powers Authority
N/A
None
None
* Excluding amounts held by bond trustee that are not subject to California Government Code restriction.
C. Investment Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreement,
rather than the general provisions of the California Government Code or the City's investment policy.
The table below identifies certain provisions of these debt agreements that address interest rate risk,
credit risk, and concentration of credit risk.
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Maximum
Maturity
1 year
N/A
5 years
30years
N/A
Maximum
Percentage of
Portfolio*
None
None
75%
None
None
Maximum
Investment in
One Issuer
30%
None
25%
None
None
Authorized
Investment Type
'
Repurchase Agreements
Money Market Mutual Funds
U.S. Agency Securities
'
Investment Contracts
Local Agency Investment Fund (LAIF)
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Maximum
Maturity
1 year
N/A
5 years
30years
N/A
Maximum
Percentage of
Portfolio*
None
None
75%
None
None
Maximum
Investment in
One Issuer
30%
None
25%
None
None
City of Poway '
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Risk Disclosures '
Interest Rate Risk
,
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in the market interest rates. One of the ways that the City manages its exposure to
'
interest rate risk is by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
'
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that shows
the distribution of the City's investments by maturity:
'
Remaining Maturity
12 Months 13 to 24 25 to 60 More than
'
Investment Type Amounts or Less Months Months 60 Months
U.S. Treasuries $ 2,215,593 $ - $ 2,215,593 $ - $
U.S. Agencies 5,060,146 1,006,239 4,053,907 -
CalTrust Investment Pool 49,314,049 49,314,049 -
US Instrumentalities 28,527,345 9,075,599 11,588,009 7,863,737 =
Medium -Tenn and Corporate Notes 10,304,300 3,966,110 3,188,334 3,149,856 -
'
Local Agency Investment Fund (LAIF) 28,753,063 28,753,063
San Diego County Investment Pool 30,824 30,824 - - -
LOI Bond AD #2001 -1 165,640 19,885 21,028 70,621 54,106
'
Certificates of Deposit 50,000 50,000 - - -
Held by bond trustee:
Money Market Funds 12,672,181 12,672,181 - -
Investment Contracts 11,073,932 - - 11,073,932
'
Federal Home Loan Mortgage Corporation 2,711,995 - 2,711,995 - -
$ 150,879,068 $ 104,887,950 $ 23,778,866 $ 11,084,214 $ 11,128,038
'
11
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. The following presentation is the minimum rating required by (where applicable)
the California Government Code, the City's investment policy, or debt agreements, and the actual
rating as of year end for each investment type:
Concentration of Credit Risk
The City's Policy states that not more than 20% of the portfolio shall be invested in any one entity or
any one instrument to protect the City from concentration of credit risk, with the following exceptions:
U.S. Treasury Obligations and investments pools (State of California - Local Agency Investment Fund
and California Asset Management Program). In addition, purchases of commercial paper must not
exceed 20% of the value of the portfolio at any time and single issuer holdings must not exceed 3
percent per issuer. The City is in compliance with these provisions of the Policy.
The following is a chart of City's investment portfolio:
Investment Reported
Trustee/Custodian Type Amount
Union Bank
Investment Type
Amounts
Minimum
Rating
Ezempt
AAA /Aaa
A + /Al AA + /Aa2 A + /A2 A /A2
AA /Aa2 AA - /A2
AA /NR
' U.S. Treasuries
$ 2215,593
Aaa
$
$ 2,215593
$ $ - $ $ -
$ - $ -
$
11,073,932
U.S. Agencres
5,060,146
Aaa
_
5,060,146
_ _
_
CalTrust Investment Pool
49,314,049
Aaa
-
-
- - - -
- -
49,314099
US InswmenGlities
28527,395
Aaa
-
28527,345
'
MediumTerm and Corporate Notes
10,304 -W
Al
1046,369
1,082,513 3,099,091 1,998,255 1053,800
1,020014 1,004,258
lace) Agency Investment Fund (I.AIF)
28,753,063
N/A
28,753,063
-
- - - -
- -
-
San Diego County Investment Pool
30,824
30124
-
- - - -
- -
-
'
1A1 Bond AD #200 -1
165,640
165,640
Certificates of Deposit
50,000
50000
Held by bond trustee:
Moray Market Funds
12,672,181
12,672,181
'
Investment Contracts
11073,932
11073,932
Federal National Mortgage Corporation
2,711,995
2,711,995
- -
- -
-
■
$ 150,879068
$ 55,407,635
$ 36,899,453
$ 1,082513 $ 3,099,091 $ 1,998,255 $ 1053,800
$ 1,02D,014 $ 1009,258
$ 49314,049
Concentration of Credit Risk
The City's Policy states that not more than 20% of the portfolio shall be invested in any one entity or
any one instrument to protect the City from concentration of credit risk, with the following exceptions:
U.S. Treasury Obligations and investments pools (State of California - Local Agency Investment Fund
and California Asset Management Program). In addition, purchases of commercial paper must not
exceed 20% of the value of the portfolio at any time and single issuer holdings must not exceed 3
percent per issuer. The City is in compliance with these provisions of the Policy.
The following is a chart of City's investment portfolio:
Investment Reported
Trustee/Custodian Type Amount
Union Bank
US. Treasuries $
2,215,593
Union Bank
U.S. Agencies
5,060,146
Union Bank
CalTrust Investment Pool
49,314,049
Union Bank
Corporates
10,304,300
State Treasurer Office
LAIF
28,753,063
FSA Capital
Investment Contract
11,073,932
49
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
E. Investment in Local Agency Investment Funds
The City invests in the Local Agency Investment Fund (LAIF), a State of California investment pool.
LAIF determines fair value on its investment portfolio based on market quotations for those securities
where market quotations are readily available and based on amortized cost or best estimate for those
securities where market value is not readily available.
The City valued its investments in LAIF as of June 30, 2010, at fair value. The fair value is calculated by
multiplying the account balance with LAIF times a fair value factor of 1.001643776 which is determined
by LAIF. This fair value factor was determined by dividing total value by all LAIF participants total
cost.
The City's investments with Local Agency Investment Funds (LAIF) at June 30, 2010, included a portion
of the pooled funds invested in Medium -Term and Short -Term Structured Notes and Asset - Backed
Securities. These investments included the following:
Structured Notes are debt securities (other than asset - backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and /or that have embedded forwards or options.
Asset - Backed Securities the bulk of which are mortgage- backed securities, entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2010, the City had $28,753,063 invested in LAIF, which had invested 5.42% of the pooled
investment funds in short -term and medium -term Structured Notes and Asset - Backed Securities.
F. Investment in San Diego County Investment Pool
The City is a voluntary participant in the County Treasury Pool (County Pool) which is regulated under
the oversight of the Treasurer of the County of San Diego. The fair value of the City's investment in the
County Pool is reported in the accompanying financial statements based upon the City's pro -rata
share of the fair value provided by the County Pool for the entire portfolio. The balance available for
withdrawal is based on the accounting records maintained by the Pool. Included in the County Pool's
investment portfolio are collateralized and negotiable certificates of deposit, floating rate securities
issued by federal agencies and corporations, money market funds, repurchase agreements and
commercial paper.
At June 30, 2010, the City had $30,824 invested in the San Diego County Investment Pool.
50
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. INTERFUND TRANSACTIONS
A. Due To and Due From Other Funds
As of June 30, 2010, balances were as follows:
_Due to other funds
Governmental Activities:
Non -major Governmental Funds
Total
Due from other funds
General
Fund Total
$ 864,871 $ 864,871
$ 864,871 $ 864,871
These balances resulted from loans to cover negative cash balances as of June 30, 2010.
B. Advances To and Advances From Other Funds
Advances to other funds
Governmental Activities:
General Fund
Non -major Governmental Funds
Business -Type Activities:
Water
Sewer
Total
$ 3,301,457 $ 1,004,305 $ - $ 4,305,762
3,720,100 17,576 - 3,737,676
2,606,354 - - 2,606,354
5,248,623 214,500 1,000,000 6,463,123
$ 14,876,534 $ 1,236,381 $ 1,000,000 $ 17,112,915
The advances were primarily used for the following:
The City Council authorized various Ioans to the Redevelopment Agency totaling $14,876,534 and
to other Non -major Governmental funds totaling $1,263,381 at various interest rates. The terms of
the loans are indefinite. Accrued interest on the loans of $3,690,937 and $1,053,486 respectively, are
not reflected in the accompanying basic financial statements as payment is contingent upon the
availability of tax increment. Interest is recorded when it becomes payable from available
spendable resources.
The City's Sewer Fund loaned to the Parkway Business Center CFD No. 88-1 - Bond Deposit
Fiduciary Agency Fund $1,000,000. Interest on this loan is paid on an annual basis and the
outstanding principal balance will be paid with the final assessment in 2014 -2015.
51
Advances from other funds
City of Poway
Redevelopment Agency
Non -major Fiduciary
Debt Service
Governmental Agency
Fund
Funds Funds Total
$ 3,301,457 $ 1,004,305 $ - $ 4,305,762
3,720,100 17,576 - 3,737,676
2,606,354 - - 2,606,354
5,248,623 214,500 1,000,000 6,463,123
$ 14,876,534 $ 1,236,381 $ 1,000,000 $ 17,112,915
The advances were primarily used for the following:
The City Council authorized various Ioans to the Redevelopment Agency totaling $14,876,534 and
to other Non -major Governmental funds totaling $1,263,381 at various interest rates. The terms of
the loans are indefinite. Accrued interest on the loans of $3,690,937 and $1,053,486 respectively, are
not reflected in the accompanying basic financial statements as payment is contingent upon the
availability of tax increment. Interest is recorded when it becomes payable from available
spendable resources.
The City's Sewer Fund loaned to the Parkway Business Center CFD No. 88-1 - Bond Deposit
Fiduciary Agency Fund $1,000,000. Interest on this loan is paid on an annual basis and the
outstanding principal balance will be paid with the final assessment in 2014 -2015.
51
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. INTERFUND TRANSACTIONS, Continued
C. Transfers To and From Other Funds
Transfers for the year ended June 30, 2010, were as follows:
Transfers Out
Low and City of Poway
Moderate Redevelopment
Income Housing Agency Non -major Water Sewer Internal
Special Revenue Debt Service Governmental Enterprise Enterprise Service
Transfers In -� General Fund Fund Funds Fund Fund Funds Total
General Fund $ 773,982 $ - $ - $ 750,367 $ 173,300 $ 66,280 $ 2,275,047 $ 4,038,976
Low and Moderate Income Housing
Special Revenue Fund - 7,881,168 - 7,881,168
City of Poway Redevelopment
Agency Debt Service Fund 1,741,327 - 449,045 2,190,372
Redevelopment Area
Capital Projects Fund - 6,999,555 - 6,999,555
Non -major Governmental
Funds 897,727 449,045 115,459 115,459 - 1,577,690
Total $ 1,671,709 $ 1,741,327 $ 15,329,768 $ 1,199,412 $ 288,759 $ 181,739 $ 2,275,047 $ 22,687,761
Transfers are primarily used for the following:
➢ Move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them;
➢ Move receipt restricted to the debt service from the funds collecting the receipts, to the debt
service fund as debt service payments become due.
➢ Move available funds to capital project funds for approved projects.
➢ Move available funds to new funds, or closed funds, at the direction of the Council.
52
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. CAPITAL ASSETS
A. Government -Wide Financial Statements
The following is a summary of capital assets for governmental activities:
Non - depreciable Assets:
Land
Construction in progress
Total non - depreciable assets
Depreciable Assets:
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Total depreciable assets,
at cost
Less accumulated depreciation:
Buildings
Improvements other than buildings
Infrastructure
Machinery and equipment
Total accumulated depreciation
Total depreciable assets, net
Total governmental
activities
Balance Balance
July 1, 2009 Additions Deletions Reclassification June 30, 2010
$ 71,519,985 $
1,381,933 $
$ - $
72,901,918
6,302,990
7,715,556
(1,674,485)
12,344,061
77,822,975
9,097,489
- (1,674,485)
85,245,979
(108,600,535)
(6,399,098)
150,000 - (114,849,633)
117,211,718
64,966,094
-
- 1,326,096
66,292,190
6,309,047
-
-
6,309,047
139,659,298
-
- 145,936
139,805,234
14,877,814
1,332,259
(150,000) 202,453
16,262,526
225,812,253 1,332,259 (150,000) 1,674,485 228,668,997
(23,718,648)
(1,919,710)
- - (25,638,358)
(899,392)
(236,572)
- - (1,135,964)
(76,006,637)
(3,147,414)
- - (79,154,051)
(7,975,858)
(1,095,402)
150,000 - (8,921,260)
(108,600,535)
(6,399,098)
150,000 - (114,849,633)
117,211,718
(5,066,839)
- 1,674,485 113,819,364
$ 195,034,693 $ 4,030,650 $ - $ - $ 199,065,343
Governmental activities depreciation expenses for capital assets for the year ended June 30, 2010 are as
follows:
General government $ 1,534,519
Public safety 881,221
Public works 3,538,770
Community services 444,588
Total depreciation expense $ 6,399,098
53
The following is a summary of capital assets for business -type activities:
City of Poway
Notes to Basic Financial Statements, Continued
,
For the year ended June 30, 2010
Balance
Balance
4. CAPITAL ASSETS, Continued
July 1, 2009
A. Government -Wide Financial Statements, Continued
'
The following is a summary of capital assets for business -type activities:
'
Balance
Balance
July 1, 2009
Additions Deletions
Reclassification
June 30, 2010
'
Non - depreciable Assets:
Land
$ 76,797
$ - $ -
$ -
$ 76,797
Construction in progress
7,125,892
6,277,150 -
(6,663,610)
6,739,432
'
Total non - depreciable assets
7,202,689
6,277,150 -
(6,663,610)
6,816,229
Depreciable Assets:
'
Buildings
21,076,441
- -
-
21,076,441
Improvements other than buildings
53,536,924
- -
6,510,829
60,047,753
Machinery and equipment
2,909,801
- -
152,781
3,062,582
,
Total depreciable assets, at cost
77,523,166
- -
6,663,610
84,186,776
Less accumulated depreciation:
Buildings
(14,655,783)
(465,737) -
-
(15,121,520)
,
Improvements other than buildings
(27,483,227)
(1,432,574) -
-
(28,915,801)
Machinery and equipment
(1,890,534)
(186,552) -
-
(2,077,086)
'
Total accumulated depreciation
(44,029,544)
(2,084,863) -
-
(46,114,407)
Total depreciable assets, net
33,493,622
(2,084,863) -
6,663,610
38,072,369
Total business -type activities
$ 40,696,311
$ 4,192,287 $ -
$ -
$ 44,888,598
,
Business -type activities depreciation expenses for capital assets for the year ended June 30, 2010 are as ,
follows:
Water $ 1,211,092
Sewer 873,771
Total depreciation expense $ 2,084,863 '
B. Fund Financial Statements I
The fund financial statements do not present general government capital assets but are shown in the
Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net
Assets.
11
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' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT
IThe following is a summary of long -term debt for the year ended June 30, 2010:
0
' Governmental Activities:
Tax Allocation Bonds
Certificates of Participation
' Notes payable
Compensated absences
Total governmental activities
' Business -Type Activities:
Revenue Bonds
Compensated absences
Total business -type activities
Classification
Balance Debt Debt Balance Due Within Due in more
July 1, 2009 Issued Retired June 30, 2010 One Year than One Year
$ 240,800,638 $
$ (5,813,566)
$ 234,987,072 $
5,775,000
$ 229,212,072
50,068,163
- (1,614,067)
48,454,096
1,670,000
46,784,096
2,282,701
161,049 (43,238)
2,400,512
-
2,400,512
1,402,003
244,196 (262,685)
1,383,514
259,221
1,124,293
$ 294,553,505 $
405,245 $ (7,733,556)
$ 287,225,194 $
7,704,221
$ 279,520,973
$ 1,568,547 $
- $ (187,976) $
1,380,571 $
198,177 $
1,182,394
314,817
26,032 (58,834)
282,015
52,704
229,311
$ 1,883,364 $
26,032 $ (246,810) $
1,662,586 $
250,881 $
1,411,705
IA. Governmental Activities Long -Term Debt
' Tax Allocation Bonds
Tax Allocation Bonds at June 30, 2010, consisted of the following:
I�
'
2000 Tax allocation bonds
Amount Due
2001 Tax allocation bonds
'
2003 Tax allocation bonds
Within
Bond premium
July 1, 2009 Additions
2007 Tax allocation bonds
June 30, 2010
Bond premium
One Year
Total Tax Allocation Bonds
$ (1,355,000)
$ 7,980,000
11
Amount Due
Amount Due
Balance
Balance
Within
More Than
July 1, 2009 Additions
Deletions
June 30, 2010
One Year
One Year
$ 9,335,000 $ -
$ (1,355,000)
$ 7,980,000
$ 1,425,000
$ 6,555,000
73,025,000 -
(550,000)
72,475,000
580,000
71,895,000
129,900,000 -
(3,620,000)
126,280,000
3,740,000
122,540,000
2,529,189 -
(194,994)
2,334,195
-
2,334,195
24,680,000 -
(30,000)
24,650,000
30,000
24,620,000
1,331,449 -
(63,572)
1,267,877
-
11267,877
$ 240,800,638 $ -
$ (5,813,566)
$ 234,987,072
$ 5,775,000
$ 229,212,072
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
A. Governmental Activities Long -Term Debt, Continued
Tax Allocation Bonds, Continued
2000 Tax Allocation Bonds
In March 2000, the Agency issued the 2000 Tax Allocation Refunding Bonds in the amount of
$39,915,000. The bonds were issued on a subordinate basis to the portion of the Agency's previously
issued $21,595,000 Paguay Redevelopment Project, Tax Allocation Refunding Bonds, Series 1990A, of
which $5,855,000 were not refunded and $4,305,000 are currently outstanding. The bonds consisted of
serial bonds of $9,940,000 maturing from 2000 to 2011 in semi - annual installments of $45,000 to $785,000
and term bonds of $29,975,000 maturing in 2033. Interest is paid semiannually on June 15 and
December 15 at rates ranging from 3.75% to 5.75 %.
Bonds maturing on or after June 11, 2011 are subject to optional redemption in whole or in part on any
interest payment date. Bonds maturing on June 15, 2033 are subject to mandatory redemption on each
interest payment date beginning June 15, 2027. The outstanding balance of the bonds at June 30, 2010
was $7,980,000.
The Agency has pledged a portion of future property tax increment revenue to repay the 2000 Tax
Allocation Refunding Bonds. The bonds required 7% of property tax increment revenue. Total
principal and interest remaining on the bond is $14,841,919 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2010, are as follows:
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'
Year Ending
June 30,
Principal
Interest
Total
2011
$ 1,425,000
$ 424,987 $
1,849,987
'
2012
740,000
352,862
1,092,862
2013
-
334,362
334,362
2014
-
334,362
334,362
'
2015
-
334,362
334,362
2016 -2020
-
1,671,810
1,671,810
2021 -2025
-
1,671,813
1,671,813
'
2026 -2030
2,865,000
1,433,905
4,298,905
20313 -2033
2,950,000
303,456
3,253,456
Total
$ 7,980,000
$ 6,861,919 $
14,841,919
'
56 1
' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
' A. Governmental Activities Long -Term Debt, Continued
' Tax Allocation Bonds, Continued
2001 Tax Allocation Bonds
' In July 2001, the Agency issued the 2001 Tax Allocation Bonds in the amount of $76,395,000 for the
purpose of refinancing the Agency's outstanding Paguay Redevelopment Project, Subordinate Tax
Allocation Bonds of 1999, financing certain improvements, including low and moderate income housing
' improvements in the Paguay Redevelopment Project Area, funding an escrow for future capital
improvement, funding a reserve account and paying the bond issuance cost. The bonds bear interest
from 3% to 5.25%, payable semi - annually on June 15 and December 15 through 2033. Payments of the
' bonds collateralized by a pledge of tax revenues to be received by the Agency. The bonds maturing on
or after June 15, 2012 are subject to redemption prior to maturity at the option of the Agency. The
outstanding balance of the bonds at June 30, 2010 was $72,475,000.
1 The Agency has pledged a portion of future property tax increment revenue to repay the 2001 Tax
Allocation Bonds. The bonds required 17% of property tax increment revenue. Total principal and
' interest remaining on the bond is $125,256,959 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2010, are as follows:
' Year Ending
June 30, Principal Interest Total
' 2011 $ 580,000 $ 3,712,424 $ 4,292,424
2012 1,360,000 3,678,455 5,038,455
2013 2,200,000 3,608,461 5,808,461
' 2014 2,295,000 3,507,415 5,802,415
2015 2,410,000 3,395,149 5,805,149
2016 -2020 11,670,000 15,112,104 26,782,104
' 2021 -2025 13,855,000 11,858,362 25,713,362
2026 -2030 24,945,000 6,773,027 31,718,027
2031 -2033 13,160,000 1,136,562 14,296,562
' Total $ 72,475,000 $ 52,781,959 $ 125,256,959
L
1 57
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
A. Governmental Activities Long -Term Debt, Continued
Tax Allocation Bonds, Continued
2003 Tax Allocation Bonds
In October 2003, the Agency issued the 2003 Series A Tax Allocation Bonds in the amount of
$150,300,000 for the purpose of refinancing the outstanding 1993 Tax Allocation Refunding Bonds in the
amount of $94,740,000, paying approximately $10,983,000 owed under two owner participation
agreements related to the properties located in the City's business parks, with one being paid in full,
providing financing for certain improvements in the Paguay Redevelopment Area, funding a reserve
account and paying the bond issuance costs. The bonds bear interest from 2.0% to 5.25% and are pay-
able semi - annually on June 15 and December 15 through 2033. Payment of the bonds is collateralized
by a pledge of tax revenues to be received by the Agency.The bonds maturing on or after June 15, 2028
are subject to redemption prior to maturity at the option of the Agency. The outstanding balance of
the bonds at June 30, 2010 was $126,280,000.
The Agency has pledged a portion of future property tax increment revenue to repay the 2003 Tax
Allocation Bonds. The bonds required 40% of property tax increment revenue. Total principal and
interest remaining on the bond is $203,144,265 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2010, are as follows:
Year Ending
Amortization of
June 30,
Principal
Interest
Total
Bond Premium
2011
$ 3,740,000
$ 6,294,900 $
10,034,900
$ 191,162
2012
4,050,000
6,155,050
10,205,050
186,915
2013
4,465,000
6,003,300
10,468,300
182,307
2014
4,695,000
5,824,950
10,519,950
176,891
2015
5,010,000
5,614,300
10,624,300
170,494
2016 -2020
28,975,000
23,884,126
52,859,126
725,307
2021 -2025
37,625,000
15,346,139
52,971,139
466,028
2026 - 2030
22,895,000
6,356,625
29,251,625
193,037
2031 -2033
14,825,000
1,384,875
16,209,875
42,054
Total
$ 126,280,000
$ 76,864,265 $
203,144,265
$ 2,334,195
58
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' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1
5. LONG -TERM DEBT, Continued
' A. Governmental Activities Long -Term Debt, Continued
' Tax Allocation Bonds, Continued
2007 Tax Allocation Bonds
t In February 2007, the Agency issued the 2007 Tax Allocation Bonds in the amount of $24,965,000 for the
purpose of refinancing a portion of the 2000 Tax Allocation Refunding Bonds, originally issued in the
principal amount of $39,915,000, of which $36,610,000 is currently outstanding (and of which
' $12,450,000 will remain outstanding upon issuance of the Bonds), finance and refinance certain
improvements in the Paguay Redevelopment Project Area and paying the bond issuance cost. The
bonds bear interest from 3.5% to 4.125% and are payable semi - annually on June 15 and December 15
' through 2033. Payment of the bonds is collateralized by a pledge of tax revenues to be received by the
Agency. The bonds maturing on or before June 15, 2017 are not subject to call and optional redemption
prior to maturity. Bonds maturing on or after December 15, 2017 are subject to redemption prior to
' maturity at the option of the Agency. The outstanding balance of the bonds at June 30, 2010 was
$24,650,000.
'
The Agency has pledged a portion of future property tax increment revenue to repay the 2007 Tax
Allocation Bonds. The bonds required 5% of property tax increment revenue.
Total principal and
interest remaining on the bond is $49,119,038 payable through 2033.
'
The to the bonds at June 30, 2010, are as
follows:
annual requirements amortize outstanding
Year Ending
'
June 30, Principal Interest Total Bond Premium
2011 $ 30,000 $ 1,225,830 $ 1,255,830 $
63,517
2012 30,000 1,224,780 1,254,780
63,463
'
2013 30,000 1,223,708 1,253,708
63,408
2014 30,000 1,222,628 1,252,628
63,352
2015 30,000 1,221,525 1,251,525
63,294
'
2016 -2020 190,000 6,087,934 6,277,934
315,449
2021 - 2025 225,000 6,046,914 6,271,914
313,323
2026 -2030 12,035,000 5,138,969 17,173,969
266,279
'
2031 -2033 12,050,000 1,076,750 13,126,750
55,792
Total $ 24,650,000 $ 24,469,038 $ 49,119,038 $
1,267,877
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1 59
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
A. Governmental Activities Long -Term Debt, Continued
Certificates of Participation
Certificates of Participation at June 30, 2010, consisted of the following:
1995 Certificates of Participation
2003 Certificates of Participation
Bond premium
2005 Certificates of Participation
Bond premium
Total certificates of participation
1995 Certificates of Participation
r
$ 51,602,984 $ - $ (1,614,067) $ 48,454,096 $ 1,670,000 $ 46,784,096 '
In September 1995, the City issued the 1995 Refunding Certificates of Participation in the amount of
$31,770,000 to defease the City's outstanding 1991 Certificates of Participation - Capital Improvement
Project - Poway Royal Mobilehome Park. The original bonds were issued to purchase the Poway Royal
Mobilehome Park. The 1995 Refunding Certificates of Participation consisted of $3,895,000 serial
certificates maturing from 1996 to 2008 in semi - annual installments of $10,000 to $360,000 and term
certificates of $6,335,000, $6,405,000 and $15,135,000 maturing in 2015, 2020, and 2028, respectively.
Interest is payable semi - annually on February 1 and August 1 at rates ranging from 3.65% to 6.15 %.
Certificates maturing on or after February 1, 2006 are subject to optional prepayment in whole or in part
on any interest payment date on or after August 1, 2005. Certificates maturing on August 1, 2015, 2020,
and 2028 are subject to mandatory prepayment by lot on any interest payment date beginning February
1, 2009, 2016 and 2021, respectively. At June 30, 2010, the outstanding balance of the 1995 Refunding
Certificates of Participation was $26,720,000.
The City has pledged a portion of future property tax increment revenue to repay the 1995 Refunding
Certificates of Participations. Total principal and interest remaining on the certificates is $44,568,536
payable through 2029.
The annual debt service requirements for the 1995 Refunding Certificates of Participation outstanding at
June 30, 2010, are as follows:
Year Ending
Amount Due
Amount Due
Balance
Interest
Balance
Within
More Than
June 30, 2009 Additions
Deletions
June 30, 2010
One Year
One Year
$ 27,500,000 $ -
$ (780,000)
$ 26,720,000
$ 825,000
$ 25,895,000
15,645,000 -
(370,000)
15,275,000
385,000
14,890,000
142,183 -
(9,425)
132,758
-
132,758
6,705,000 -
(445,000)
6,260,000
460,000
51800,000
75,980 -
(9,642)
66,338
-
66,338
r
$ 51,602,984 $ - $ (1,614,067) $ 48,454,096 $ 1,670,000 $ 46,784,096 '
In September 1995, the City issued the 1995 Refunding Certificates of Participation in the amount of
$31,770,000 to defease the City's outstanding 1991 Certificates of Participation - Capital Improvement
Project - Poway Royal Mobilehome Park. The original bonds were issued to purchase the Poway Royal
Mobilehome Park. The 1995 Refunding Certificates of Participation consisted of $3,895,000 serial
certificates maturing from 1996 to 2008 in semi - annual installments of $10,000 to $360,000 and term
certificates of $6,335,000, $6,405,000 and $15,135,000 maturing in 2015, 2020, and 2028, respectively.
Interest is payable semi - annually on February 1 and August 1 at rates ranging from 3.65% to 6.15 %.
Certificates maturing on or after February 1, 2006 are subject to optional prepayment in whole or in part
on any interest payment date on or after August 1, 2005. Certificates maturing on August 1, 2015, 2020,
and 2028 are subject to mandatory prepayment by lot on any interest payment date beginning February
1, 2009, 2016 and 2021, respectively. At June 30, 2010, the outstanding balance of the 1995 Refunding
Certificates of Participation was $26,720,000.
The City has pledged a portion of future property tax increment revenue to repay the 1995 Refunding
Certificates of Participations. Total principal and interest remaining on the certificates is $44,568,536
payable through 2029.
The annual debt service requirements for the 1995 Refunding Certificates of Participation outstanding at
June 30, 2010, are as follows:
Year Ending
June 30,
Principal
Interest
Total
2011
$ 825,000
$ 1,584,976
$ 2,409,976
2012
870,000
1,535,772
2,405,772
2013
930,000
1,483,778
2,413,778
2014
975,000
1,428,553
2,403,553
2015
1,040,000
1,370,244
2,410,244
2016 -2020
6,225,000
5,828,813
12,053,813
2021 -2025
8,360,000
3,690,600
12,050,600
2026 -2029
7,495,000
925,800
8,420,800
Total
$ 26,720,000
$ 17,848,536
$ 44,568,536
60
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
A. Governmental Activities Long -Term Debt, Continued
Certificate of Participation, Continued
2003 Certificates of Participation
In January 2003, the City issued 2003 Certificates of Participation in the amount of $17,655,000 for the
construction of a City office building. The 2003 Certificates of Participation consisted of $5,930,000 serial
certificates maturing from 2004 through 2011 in annual installment of $350,000 to $515,000 and term
certificates of $3,005,000, $3,830,000 and $4,890,000 maturing in 2023, 2028 and 2033, respectively.
Interest is payable semi - annually on July 1 and January 1 at rates ranging from 3.00% to 5.00 %.
Certificates maturing on or after January 1, 2018 are subject to optional redemption in whole or in part,
on or after January 1, 2017. Certificates maturing on January 1, 2033 are subject to mandatory
redemption, without premium, on January 1, 2019. At June 30, 2010, the outstanding balance of the 2003
Certificates of Participation was $15,275,000.
Year Ending
June 30, Principal
Interest Total Bond Premium
2011
$ 385,000
$ 745,015 $
1,130,015 $
9,241
2012
400,000
731,540
1,131,540
9,074
2013
410,000
716,740
1,126,740
8,890
2014
430,000
700,750
1,130,750
8,692
2015
445,000
683,550
1,128,550
8,479
2016 - 2020
2,595,000
3,052,949
5,647,949
37,869
2021 -2025
3,315,000
2,337,250
5,652,250
28,990
2026 -2030
4,220,000
1,422,500
5,642,500
17,645
2031 -2033
3,075,000
312,500
3,387,500
3,878
Total
$ 15,275,000
$ 10,702,794 $
25,977,794 $
132,758
2005 Certificates of Participation
In April 2005, the City issued 2005 Refunding Certificates of Participation in the amount of $8,245,000 to
refund and defease the City's outstanding 1995 Certificates of Participation and the 1996 Certificates of
Participation. The original 1995 Certificates of Participation were used for several projects such as the
City's pool and Performing Arts Center, while the 1996 Certificates of Participation were used to build
the City's Sheriff Substation. The 2005 Refunding Certificates of Participation consisted of $6,830,000
serial certificates maturing from 2005 through 2020 in annual installments of $305,000 to $610,000 and
term certificates of $1,415,000 maturing in 2026. Interest is payable semi - annually on February 1 and
August 1 at rates ranging from 3.00% to 4.50 %. Certificates maturing on or after August 1, 2016 are
subject to optional redemption in whole or in part, on any date beginning August 1, 2015. Certificates
maturing on August 1, 2026 are subject to mandatory redemptions in part of August 1 of each year
beginning August 1, 2021. At June 30, 2010, the outstanding balance of the 2005 Certificates of
Participation was $6,260,000.
61
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
A. Governmental Activities Long -Term Debt, Continued '
Certificates of Participation, Continued
'
2005 Certificates of Participation, Continued
Year Ending
'
June 30, Principal Interest Total Bond Premium
2011 $ 460,000 $ 254,113 $ 714,113 $ 9,019
'
2012 480,000 233,538 713,538 8,289
2013 505,000 214,531 719,531 7,614
2014 520,000 194,625 714,625 6,908
2015 540,000 171,113 711,113 6,073
'
2016 -2020 2,135,000 533,741 2,668,741 18,943
2021 -2025 1,105,000 243,853 1,348,853 8,655
2026 -2027 515,000 23,513 538,513 837
'
Total $ 6,260,000 $ 1,869,027 $ 8,129,027 $ 66,338
Notes Payable
Notes P a y able at June 30, 2010, consisted of the following:
Amount Due Amount Due
'
Balance Balance Within More Than
June 30, 2009 Additions Deletions June 30, 2010 One Year One Year
Mossy Nissan $ 2,282,701 $ 161,049 $ (43,238) $ 2,400,512 $ - $ 2,400,512
'
Total notes payable $ 2,282,701 $ 161,049 $ (43,238) $ 2,400,512 $ - $ 2,400,512
The Agency entered into an Owner Participation Agreement with AZ Poway LLC (dba Mossy Nissan)
that went into effect upon issuance of the certificate of completion for the Mossy Nissan automobile
dealership on July 11, 2003. The Agency purchased an operating covenant for $1,900,000 that accrues
interest at the rate of 7% per annum. Annual payment of the operating covenant is based on 50% of the
net new sales in effect until (i) the purchase price and accrued interested is paid in full, or (ii) the
fifteenth annual payment is made. The operating covenant is deemed paid in full after the fifteenth
'
annual payment is made, and all remaining balances, including accrued interest, are forgiven. The
balance outstanding at June 30, 2010 was $2,400,512.
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' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
' B. Business -Type Activities Long -Term Debt
' Revenue Bonds
Revenue Bonds at June 30, 2010, consisted of the following:
1995 Revenue Bonds
' In November 1995, the Poway Public Financing Authority issued the 1995 Revenue Bonds in the amount
of $3,380,000 to provide funds to construct certain water facility improvements. The bonds consist of
$2,190,000 serial bonds maturing from 1996 to 2010 in annual installments of $105,000 to $200,000 and
$1,190,000 term bonds maturing in 2015.
Interest is payable semi - annually on May 1 and November 1 with rates ranging from 3.70% to 5.75 %.
Bonds maturing on or after November 1, 2006 are subject to optional redemption prior to maturity, in
whole or in part, on any date on or after November 1, 2005. The term bonds are subject to mandatory
' redemption in part on November 1, 2011 to 2015 in the amounts ranging from $215,000 to $265,000. At
June 30, 2010, the outstanding balance of the 1995 Revenue Bonds was $1,390,000.
' The City has pledged a portion of future water revenue to repay the 1998 Revenue Bonds. Total
principal and interest remaining on the bond is $1,631,302 payable through 2016.
IThe annual requirements to amortize the bonds outstanding at June 30, 2010 are as follows:
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11
Year Ending
Total
June 30,
Principal
Amount Due
Amount Due
2012
Balance
2013
Balance
Within
More Than
2015
June 30, 2008 Additions
Deletions
June 30, 2009
One Year
One Year
1995 Revenue Bonds
$ 1,580,000 $ -
$ (190,000)
$ 1,390,000
$ 200,000
$ 1,190,000
Bond discounts
(11,453) -
2,024
(9,429)
-
(9,429)
Total contract payable
$ 1,746,327 $ -
$ (187,976)
$ 1,380,571
$ 200,000
$ 1,180,571
1995 Revenue Bonds
' In November 1995, the Poway Public Financing Authority issued the 1995 Revenue Bonds in the amount
of $3,380,000 to provide funds to construct certain water facility improvements. The bonds consist of
$2,190,000 serial bonds maturing from 1996 to 2010 in annual installments of $105,000 to $200,000 and
$1,190,000 term bonds maturing in 2015.
Interest is payable semi - annually on May 1 and November 1 with rates ranging from 3.70% to 5.75 %.
Bonds maturing on or after November 1, 2006 are subject to optional redemption prior to maturity, in
whole or in part, on any date on or after November 1, 2005. The term bonds are subject to mandatory
' redemption in part on November 1, 2011 to 2015 in the amounts ranging from $215,000 to $265,000. At
June 30, 2010, the outstanding balance of the 1995 Revenue Bonds was $1,390,000.
' The City has pledged a portion of future water revenue to repay the 1998 Revenue Bonds. Total
principal and interest remaining on the bond is $1,631,302 payable through 2016.
IThe annual requirements to amortize the bonds outstanding at June 30, 2010 are as follows:
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Year Ending
Total
June 30,
Principal
2011
$ 200,000
2012
215,000
2013
225,000
2014
235,000
2015
250,000
2016
265,000
Total $ 1,390,000
Interest
Total
Bond Discount
$ 70,800
$ 270,800
$ (1,823)
59,538
274,538
(1,755)
47,438
272,438
(1,755)
34,788
269,788
(1,755)
21,450
271,450
(1,755)
7,288
272,288
(586)
$ 241,302
$ 1,631,302
$ (9,429)
City of Poway
Notes to Basic Financial Statements, Continued
'
For the year ended June 30, 2010
5. LONG -TERM DEBT, Continued
C. Defeasance of Lon&Term Debt
'
In February 2007, the City refunded a portion of the 2000 Tax Allocation Refunding Bonds in the amount
of $39,915,000 with the $24,965,000 2007 Tax Allocation Refunding Bonds. The net proceeds of '
$25,999,413 were used to purchase direct obligations for which the full faith and credit of the United
States are pledged. These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments of the refunded debt. As a result, a portion of these bonds '
were considered defeased and removed from the City's long -term debt. At June 30, 2010, the
outstanding balance of the non - defeased portion 2000 Tax Allocation Refunding Bonds was $7,980,000,
and the outstanding balance of the defeased portion was $24,160,000. '
These bonds were refunded to reduce total debt service by $3,597,684 over the next 27 years and to
obtain an economic gain (difference between the present value of the debt service payments on the old '
and new debt) of $1,866,640.
6. ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICTS BONDS ISSUES I
CommuniW Facilities District Special Refunding Bonds
In November 1998, the City issued $26,090,000 in Special Refunding Bonds, Series A and B to refund the '
outstanding portion of the $32,800,000 South Poway Community Facilities District No. 1 1987 Special Tax
Refunding Bonds. In April 2004, the City issued $3,775,000 in Special Tax Refunding Bonds to refund the
outstanding portion of the $26,090,000 South Poway Community Facilities District No. 1 1998 Special Tax '
Refunding Bonds, Series B. In May 1998, the City issued $35,445,000 in Special Tax Refunding Bonds to
refund the outstanding portion of the $30,000,000 and $8,000,000 Community Facilities District No. 88 -1
(Parkway Business Centre) Special Tax Bonds, Series 1990, respectively. In December 2009 the City issued '
$16,545,000 in Special Tax Refunding Bonds to refund the outstanding portion of the $33,445,000
Community Facilities District No. 88-1 (Parkway Business Centre) Special Tax Refunding Bonds Series 1998.
The bonds are authorized pursuant to the Mello -Roos Community Facilities Act of 1982 and are secured by '
and payable from the proceeds of annual special assessment taxes levied and collected on the property
within the District. The Bonds are not general or special obligations of the City. The City is acting as agent
only for the property owners in collecting the special assessments and forwarding the collections to the '
fiscal agents. Neither faith and credit nor the taxing power of the City is pledged to the payment of these
bonds. At June 30, 2010, the outstanding balances of the November 1998, April 2004 and December 2009
issuances were $2,125,000, $260,000, and $16,545,000, respectively. '
Integrated Financing Assessment District No. 96 -1 Limited Obligation Improvement Bonds
In June 19%, the City issued $586,470 Integrated Financing Assessment District No. 96-1 (High Valley '
Roads) Limited Obligation Improvement Bonds to finance the cost of acquisition and construction of certain
public infrastructure improvement benefiting properties within the boundaries of the assessment district.
The bonds are authorized pursuant to the Improvement Bond Act of 1915 and are secured by and payable '
from the proceeds of annual special assessment taxes levied and collected on the property within the
District. The Bonds are not general or special obligations of the City. The City is acting as agent only for the
property owners in collecting the special assessments and forwarding the collections to the fiscal agents. '
Neither faith and credit nor the taxing power of the City is pledged to the payment of these bonds. At June
30, 2010, the outstanding balance of the bonds was $290,000.
6 i
' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICTS BONDS ISSUES,
CONTINUED
Old Coach Water Line Assessment District No. 2001 -01 Limited Obligation Improvement Bonds
' In July 2001, the City issued $290,350 Old Coach Water Line Assessment District No. 2001 -01 Limited
Obligation Improvement Bonds to finance the cost of acquisition and construction of certain public
infrastructure improvement benefiting properties within the boundaries of the assessment district. The
bonds are authorized pursuant to the Improvement Bond Act of 1915 and are secured by and payable from
the proceeds of annual special assessment taxes levied and collected on the property within the District. The
' Bonds are not general or special obligations of the City. The City is acting as agent only for the property
owners in collecting the special assessments and forwarding the collections to the fiscal agents. Neither
faith and credit nor the taxing power of the City is pledged to the payment of these bonds. At June 30, 2010,
' the outstanding balance of the bonds was $165,641.
7. RETIREMENT BENEFITS
A. California Public Employees' Retirement Plan (PERS)
' Plan Description
The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-
, employer public employee defined benefit pension plan. PERS provides retirement and disability
benefits, annual cost -of- living adjustments, and death benefits to plan members and beneficiaries. PERS
acts as a common investment and administrative agent for participating public entities within the State
' of California. Benefit provisions and all other requirements are established by state statute and city
ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office located
at 400 P Street, Sacramento, California 95814.
Funding Policy
' Active members are required by State statute to contribute 7% if a Miscellaneous member, and 9% if a
Safety member, of their annual covered salary. The City pays 4% employee contributions for all
Miscellaneous employees and 6% for Safety employees (Fire, Fire Management, and the Fire Chief),
' which amounted to $764,802 for the year ended June 30, 2010. The City's employer required
contribution rate was 11.621% for Miscellaneous employees and 23.557% for Safety employees for the
fiscal year.
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. RETIREMENT BENEFITS, Continued
A. California Public Employees' Retirement Plan (PERS), Continued
Annual Pension Cost
For 2009 -2010, the City's annual pension cost of $2,501,404 for PERS was equal to the City's required
and actual contributions. The required contribution was determined as part of the June 30, 2007,
actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions
included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary
increases range from 3.25% to 14.45% for miscellaneous employees and 3.25% to 14.45% for safety
employees depending on age, service, and type of employment, and (c) 3.25% per year cost -of- living
adjustments. Both (a) and (b) included an inflation component of 3 %. The actuarial value of PERS
assets was determined using techniques that smooth the effects of short -term volatility in the market
value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus) is
being amortized as a level percentage of projected payroll on a closed basis. The amortization period at
June 30, 2007, was 30 years for miscellaneous employees and 30 years for safety employees for prior and
current service unfunded liability.
THREE -YEAR TREND INFORMATION FOR PERS ($ Amounts in Thousands)
Most Recent Actuarial Study - Schedule of Funding Progress
($ Amounts in Thousands)
Safety
Miscellaneous
Total
Actuarial Actual Actuarial
Actuarial
Annual
Annual
Annual
Percentage of
Pension Cost
Pension Cost
Pension Cost
APC Net Pension
Fiscal Year
(APC)
(APC)
(APC)
Contributed Obligation
6/30/2008
$ 1,026
$ 1,397
$ 2,423
100% $ -
6/30/2009
1,119
1,488
2,607
100% -
6/30/2010
1,097
1,404
2,501
100% -
Most Recent Actuarial Study - Schedule of Funding Progress
($ Amounts in Thousands)
Miscellaneous
Employees Group 6/30/2009 $ 59,494 $ 69,735 $ (10,241)
Overfunded
(Unfunded)
Actuarial
Liability as
Percentage of
Funded Covered Covered
Ratio Payroll Payroll
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85.3% $ 12,754 (80.30)% '
Public Safety The City's safety plan becomes part of a CalPERS Risk Pool for employers with less than 100 active plan members. As part of
Employees Group a cost sharing multiple - employer defined benefits plan, disclosures of the schedule of funding progress is not required.
The schedules of funding progress, presented as required supplementary information (RSI) following
the notes to the financial statements, presented multiyear trend information about whether the actuarial
values of plan assets are increasing or decreasing over time relative to the AALs for benefits.
66
Overfunded
Entry Age
(Unfunded)
Actuarial Actual Actuarial
Actuarial
Valuation Asset Accrued
Accrued
Date Value Liability (AAL)
Liability
Miscellaneous
Employees Group 6/30/2009 $ 59,494 $ 69,735 $ (10,241)
Overfunded
(Unfunded)
Actuarial
Liability as
Percentage of
Funded Covered Covered
Ratio Payroll Payroll
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85.3% $ 12,754 (80.30)% '
Public Safety The City's safety plan becomes part of a CalPERS Risk Pool for employers with less than 100 active plan members. As part of
Employees Group a cost sharing multiple - employer defined benefits plan, disclosures of the schedule of funding progress is not required.
The schedules of funding progress, presented as required supplementary information (RSI) following
the notes to the financial statements, presented multiyear trend information about whether the actuarial
values of plan assets are increasing or decreasing over time relative to the AALs for benefits.
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' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. RETIREMENT BENEFITS, Continued
B. Public Agency Retirement Services (PARS)
Plan Description
The City sponsors the PARS Retirement Enhancement Plan. The plan provides a benefit equal to the
2.7% at 55 plan factor, less the CAPERS 2% at 55 plan factors for all years of City service and prior
' CalPERS service. Sample rates are as follows:
Net Net Net
Age Factor Age Factor Age Factor
50 1.426% 55 2.000% 60 2.262%
51 1.522% 56 2.052% 61 2.314%
' 52 1.628% 57 2.104% 62 2.366%
53 1.742% 58 2.156% 63 2.418%
54 1.866% 59 2.210% 64+ 2.418%
' Funding Policy
' The City's funding policy is to contribute the annual required contribution. The annual required
contribution equals the sum of:
➢ Normal cost
' ➢ Amortization of the unfunded actuarial accrued liability
Annual Pension Cost
' For the year ended June 30, 2010, the City's annual required contribution is $1,027,244. The required
contribution was based on the July 1, 2008 actuarial valuation using the entry age normal actuarial cost
' method. The actuarial assumptions included (a) 7.0% investment return (net of administrative
expenses), (b) the CalPERS 1997 - 2002 Experience Study table for Males and Females, (c) projected
annual payroll increases of 3.25% a year plus merit, and (d) cost -of -living adjustment of 2% per year.
Both (a) and (c) included an inflation component of 3.5 %. The unfunded actuarial accrued liability is
' being fresh started and amortization payments are increasing by 3.25% per year over 20 years, with 14
remaining at June 30, 2010.
' THREE -YEAR TREND INFORMATION FOR PARS ($ Amounts in Thousands)
Annual Percentage of
Pension Cost APC Net Pension
Fiscal Year (APC) Contributed Obligation
6/30/2008 $ 818 100% $ -
' 6/30/2009 1,083 100% =
6/30/2010 1,027 100%
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. RETIREMENT BENEFITS, Continued
B. Public Agency Retirement Services (PARS), Continued
Most Recent Actuarial Study - Schedule of Funding
Progress
($
Amounts in Thousands)
Overfunded
(Unfunded)
Overfunded
Actuarial
Entry Age
(Unfunded)
Liability as
Actuarial
Actual
Actuarial
Actuarial
Percentage of
Valuation
Asset
Accrued
Accrued
Funded Covered Covered
Date
Value
Liability
Liability
Ratio Payroll Payroll
Miscellaneous
Employees Group 6/30/2009
$ 2,409
$ 9,755
$ (7,346)
24.7% $ 12,112 (60.65)%
C. Defined Contribution Pension Plan
The City provides pension benefits for all of its part -time employees through a defined contribution
plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus
investment earnings. The plan is administered as part of the Public Agency Retirement System (PARS).
All part -time employees are eligible to participate from the date of employment. Federal legislation
requires contributions of at least 7.5% to a retirement plan, and City Council resolved to match the
employees' contribution of 3.75% for employees hired prior to July 1, 1996. Employees hired after July
1, 1996 pay 7.5% of the contributions. The City's contributions for each employee (and interest earned
by the accounts) are fully vested immediately.
For the year ended June 30, 2010, the City's payroll covered by the plan was $617,386. The City made
employer contributions of $475 (0.0769% of current covered payroll), and employees contributed
$45,829 (7.4232% of current covered payroll).
8. REHABILITATION LOAN PROGRAM
The City has made various non - interest bearing loans to property owners for the rehabilitation of property
within the City. In accordance with the Affordable Housing Rehabilitation Loan Program, ten percent of
each loan is forgiven each year on the loan anniversary. A portion of the loans are repayable only upon the
sale of the property within ten years of the loan origination date or upon the death of the current property
owner. Due to the contingent repayment schedule of these loans, the Agency records an expenditure when
a loan is made and no receivable is included in the accompanying basic financial statements. The balance of
the loans outstanding at June 30, 2010 was $18,295.
9. TAX INCREMENT REIMBURSEMENT EXPENDITURES
The tax increment reimbursement expenditures are comprised of pass through payments to other taxing
agencies such as the County of San Diego and owner participation agreement payments to developers that
funded public improvements within the project area.
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' City of Poway
]rtes to Basic Financial Statements, Continued.
I" or the year ended June 30, 2010
10. OTHER REQUIRED DISCLOSURES
tA. Government -Wide Financial Statements
At June 30, 2010, the unrestricted net assets had a deficit balance of $(67,276,026) for governmental activities
because long -term debt is in excess of assets owned by the City. The deficit is caused by pass through
payments and other non - capitalizable expenditures from bond proceeds.
' B. Fund Financial Statements
At June 30, 2010, the following fund had a deficit fund balance:
' Funds Deficit
Non -major Governmental Funds:
Storm Water Management (147,169)
' 11. RISK MANAGEMENT
' The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is
composed of 122 California public entities and is organized under a joint powers agreement pursuant to
California Government Code Section 6500 et. Seq. The purpose of the Authority is to arrange and
' administer programs for the pooling of self - insured losses, to purchase excess insurance or reinsurance, and
to arrange for group - purchased insurance for property and other coverage. The Authority's pool began
covering claims of its members in 1978. Each member government has an elected official as its
' representative on the Board of Directors. The Board operates through a 9- member Executive Committee.
The audited Financial Statements can be obtained from City of Poway.
' A. General Liabilities
Each member government pays a primary deposit to cover estimated losses for a fiscal year (claim year).
Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit
' computation is then made for each open claims year. Limit: $50 million combined single limit per
occurrence.
B. Workers' Compensation
The City also participates in the workers compensation pool administered by the Authority. Each
' member pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months
after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is
then made for each open claims year. Limit: Statutory benefits and $10 million employers' liability.
' C. Environmental Insurance
The City also participates in the pollution legal liability and remediation legal liability insurance that is
administered by the Authority. This policy covers sudden and gradual pollution of scheduled property,
streets and storm drains owned by the City. Limit: $10 million per member, $50,000 per occurrence self -
insured retention.
' 69
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
11. RISK MANAGEMENT, Continued
D. Property Insurance
The City participates in the all -risk property protection program of the Authority. This insurance
protection is underwritten by several insurance companies. The City's property is currently insured
according to a schedule of covered property submitted by the City to the Authority. Total all -risk
property insurance coverage is $155,572,152. There is a $5,000 per loss deductible except for earthquake
which has a 5% deductible and flood which has a $100,000 per occurrence deductible. Premiums for the
coverage are paid annually and are not subject to retroactive adjustments.
E. Fidelity Bonds
The City purchases blanket fidelity bond coverage in the amount of $1,000,000 with a $2,500 deductible.
The fidelity coverage is provided through the Authority. Premiums are paid annually and are not
subject to retroactive adjustments.
At June 30, 2010, no liability was recorded in the accompanying basic financial statements.
12. JOINT VENTURE
The City is a member of the Regional Solid Waste Association Joint Powers Authority (JPA). The JPA was
formed on September 1, 1997 by the Cities of Del Mar, Encinitas, National City, Poway, Solana Beach and
Vista to provide stable, long -term, cost effective options for all aspects of regional solid waste disposal.
Each member provides a proportionate percentage of revenue to cover all costs related to the obligations
and liabilities of the JPA when they become due and payable. In the event of dissolution of the JPA, any
money or assets in possession of the Regional Solid Waste Association after the payment of all liabilities,
costs, expenses and charges shall be distributed to the member agencies in proportion to their contributions
determined as of the time of termination. The activities of the JPA are supervised by a board consisting of
one elected member of the legislative body of each of the member agencies. The City of Escondido joined
the JPA as a special contract party for the purpose of working on Regional Household Hazardous Waste
issues. Summarized audited information of the JPA for the fiscal year ended June 30, 2010 is as follows:
Total assets
$
318,983
Total liabilities
$
9,990
Fund equity
$
308,993
Total revenues
$
263,586
Total expenses
$
239,076
Net increase in fund equity
$
24,510
City's share of the JPA's assets and liabilities are not available. Separate financial statements of the JPA are
available at the City of Poway.
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City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
13. PROPERTY TAXES
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1 of
each year. Property taxes become delinquent on December 10 and April 10, for the first and second
installments, respectively. The lien date is January 1. The County of San Diego, California (County) bills
and collects property taxes and remits them to the City according to a payment schedule established by the
County.
The County is permitted by State law to levy taxes at 1 % of full market value (at time of purchase) and can
increase the property tax rate no more than 2% per year. The City receives a share of this basic tax levy
proportionate to what it received during the years 1980 -1981.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the
taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are
not considered available as a resource that can be used to finance the current year operations of the City
and, therefore, are not recorded as revenue until collected.
No allowance for doubtful accounts was considered necessary.
14. CONTINGENT LIABILITIES AND COMMITMENTS
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The
accompanying basic financial statements reflect a liability for the probable amounts of loss associated
with these claims.
B. Grants
The City participates in a number of programs that are fully or partially funded by grants received from
federal, state, and county governments. Expenditures financed by grants are subject to audit by the
appropriate grantor agency. If expenditures are disallowed due to non - compliance with grant program
regulations, the City may be required to reimburse the grantor agency. As of June 30, 2010, significant
amounts of grant expenditures have not been audited by the grantor agencies, but the City believes that
disallowed expenditures, if any, based on subsequent audits will not have a material effect on any of the
individual governmental funds or the City's overall financial position.
C. Construction
Various construction projects were in progress at June 30, 2010 with an estimated cost to complete of
approximately $27,972,621 in all fund types.
71
City of Poway '
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
15. COMMITMENTS UNDER DEVELOPER AGREEMENTS
On April 1, 1999, the Agency entered into an Owner Participation Agreement with a developer with regard '
to certain parcels of real estate located in the Project Area within the boundaries of Community Facilities
District (CFD) No. 88 -1. In order to provide for the funding of certain public improvements associated with '
the project, the Agency shall pay the developer on each annual payment date, an amount equal to gross
property tax increment allocated to and received by the Agency with respect to the site, less the housing set -
aside and the County and City administrative charges for the previous fiscal year ending June 30 preceding '
the annual payment date.
On June 22,1999, the Agency entered into an Owner Participation Agreement with a developer with regard
to certain parcels of real estate located in the Project Area. In order to provide for the funding of certain '
public improvements associated with the project, the Agency shall pay the developer on each annual
payment date, an amount equal to gross property tax increment allocated to and received by the Agency
with respect to the site, less the housing set -aside and the County and City administrative charges for the '
previous fiscal year ending June 30 preceding the annual payment date.
16. RELATED PARTY TRANSACTION '
During the fiscal year 2005-06, the City issued a Housing Loan to the City Manager in the amount of '
$500,000 for the home purchase within the City limit. The loan is secured by a note and deed of trust on the
property in the amount of $500,000. The term of the loan shall be for thirty years. The interest rate on the
loan is established at a fixed rate of 2.50% APR, payable bi- weekly through payroll deductions. The loan is '
interest only for the first year then a level payment over the next 29 years. The outstanding loan balance
was paid in full as of June 30, 2010.
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' City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1
17. RESERVATION AND DESIGNATION OF FUND BALANCES
1
Major Funds
Low and
Moderate
Income Housing
City of Poway
Redevelopment
Other
1
General
Special Revenue
RDA Debt
Area Capital
Governmental
Fund
Fund
Service Fund
Projects Fund
Fund
Total
1
Reserved for:
Encumbrances
$ 186,808
$ 202,250
$
$ 1,442,242
$ 342,406
$ 2,173,706
Prepaid items
33,811
-
33,811
Inventories
94,085
94,085
Deposits
27,243
=
27,243
1
Notes receivable
=
_
7,680,253
7,680,253
Advances to other funds
4,305,762
3,737,676
8,043,438
Debt service
-
-
13,938,600
3,918,156
17,856,756
Low and moderate income housing
17,436,676
-
_
-
17,436,676
1
Capital projects
=
2,962,509
2,962,509
Total reserved
4,647,709
17,638,926
13,938,600
9,122,495
10,960,747
56,308,477
Unreserved:
1
Designated for:
City facilities
3,772,838
-
-
-
-
3,772,838
State of California Economic downturn
3,121,321
3,121,321
Special projects
1,214,986
1,214,986
1
Street maintenance
4,507,818
=
_
_
=
4,507,818
Capital projects
-
12,390,230
8,405,474
20,795,704
Miscellaneous
19,107,774
-
-
19,107,774
1
Total unreserved, designated
31,724,737
12,390,230
8,405,474
52,520,441
Undesignated for:
Special revenue funds
-
-
5,913,093
5,913,093
1
Total unreserved, undesignated
-
-
5,913,093
5,913,093
Total fund balances
$ 36,372,446
$ 17,638,926
$ 13,938,600
$ 21,512,725
$ 25,279,314
$ 114,742,011
1 18. SUBSEQUENT EVENTS
1 State Budget Crisis
In 2009, the State of California enacted legislation authorizing a two -year takeaway of Redevelopment
1 Agency funds. The fiscal year 2009 -2010 payment was $13,700,882 and it is anticipated another $2,820,770
will need to be paid in fiscal year 2010 -2011. This action was litigated by the California Redevelopment
Association and other parties. This lawsuit challenges the constitutionality of ABX 4 -26 and seeks to
1 prevent the State from taking redevelopment funds for non - redevelopment purposes.
Poway Royal Mobile Home Park
1 On July 12, 2010, the City of Poway sold the Poway Royal Mobile Home Park to Hometown Poway Royal
Estates LLC for $38,300,000. As such the 1995 Certificates of Participation were fully paid off in conjunction
with their August 1, 2010 debt service payment. Additionally the lease between the City and the Agency
1 was terminated at the time of the sale. In addition the City received a twenty year $10,000,000 note
receivable. Interest at five percent per annum is due on July 12th of each year with the entire principal
balance being due on July 12, 2030.
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REQUIRED SUPPLEMENTARY
75
INFORMATION
City of Poway
Required Supplementary Information
For the year ended June 30, 2010
1. BUDGETARY INFORMATION
The City prepares its budgets on the basis of estimated expenditures and, accordingly, the budget amounts
included in the accompanying financial statements are presented on a basis consistent with generally
accepted accounting principles.
The City Manager's Proposed Budget is reviewed by the City's Budget Review Committee (Committee),
whose members are appointed by the City Council. The Committee then prepares recommendations for
consideration by the City Council when the budget is adopted at a public hearing each June.
No budget expenditures can be disbursed without proper appropriations. Once the budget is adopted, no
additional fund appropriations can be authorized without the Council's approval. The level of budget
control (the level on which expenditures may not legally exceed appropriations) is the individual fund
level. The City Manager can authorize budget transfers between departments without additional
appropriations.
The City holds a mid -year budget review meeting. During the meeting, all the budget expenditures are
reviewed and projections for the whole year are made. Therefore, any necessary changes are submitted for
approval by the City Council with a resolution.
Annual appropriated budgets are adopted for the general, special revenue (except for the Performing Arts
Center Trust), the permanent funds, and one debt service fund. Budgets are adopted on a basis consistent
with generally accepted accounting principles. Budgeted amounts are as originally adopted and as further
amended by the City Council. Capital improvement projects budgets are adopted upon project approval
and remaining project balances are carried forward to subsequent fiscal years until the project's completion.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders and
contracts) outstanding at year -end are reported as reservations of fund balances and do not constitute
expenditures or liabilities. The commitments will be reappropriated and honored in the subsequent year.
76
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City of Poway
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
'
The following is the budget comparison schedules for the General Fund and all major special revenue
funds.
'Budget
Comparison Schedule, General Fund
'
Budgeted Amount
Original Final
Actual
Variance
REVENUES:
Taxes $
22,979,240
$ 22,979,240
$ 23,841,209
$ 861,969
Licenses and permits
402,610
402,610
433,517
30,907
Intergovernmental
266,890
266,890
602,192
335,302
Charges for services
1,053,530
1,053,530
1,013,569
(39,961)
Fines and forfeitures
761,000
761,000
750,551
(10,449)
Use of money and property
2,089,560
2,089,560
1,892,434
(197,126)
Developer fees
3,413,710
3,413,710
3,436,091
22,381
'
Other revenue
436,880
436,880
965,071
528,191
Total revenues
31,403,420
31,403,420
32,934,634
1,531,214
'
EXPENDITURES:
Current:
General government
3,704,381
6,126,478
5,241,469
885,009
'
Public safety
19,461,170
19,475,470
18,812,864
662,606
Public works
2,609,129
2,647,629
2,395,310
252,319
Development services
4,740,058
4,767,148
4,475,943
291,205
Community services
4,936,831
4,956,831
4,422,418
534,413
Capital outlay
21757,180
2,410,845
1,295,596
1,115,249
Total expenditures
38,208,749
40,384,401
36,643,600
3,740,801
REVENUES OVER
(UNDER) EXPENDITURES
(6,805,329)
(8,980,981)
(3,708,966)
5,272,015
'
OTHER FINANCING SOURCES
(USES):
Transfers in
2,210,040
5,498,649
4,038,976
(1,459,673)
Transfers out
(2,329,295)
(3,103,277)
(1,671,709)
1,431,568
Total other financing sources (uses)
(119,255)
2,395,372
2,367,267
(28,105)
'
Net change in fund balance $
(6,924,584)
$ (6,585,609)
(1,341,699)
$ 5,243,910
FUND BALANCES:
'
Beginning of year
37,714,145
End of year
$ 36,372,446
11 77
City of Poway
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule, Low and Moderate Income Housing Special Revenue Fund
Budgeted Amount
Original Final Actual Variance
REVENUES:
Interest and rental
Otherrevenue
Total revenues
EXPENDITURES:
General government
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
FUND BALANCES:
Beginning of year
End of year
$ 395,410 $
395,410 $
349,507 $
(45,903)
30,000
30,000
326,391
296,391
425,410
425,410
675,898
250,488
1,155,336
1,155,336
1,141,648
13,688
18,680,046
18,680,046
7,037,128
11,642,918
19,835,382
19,835,382
8,178,776
11,656,606
(19,409,972) (19,409,972) (7,502,878) 11,907,094
7,449,890
7,449,890
7,881,168
431,278
(1,784,610)
(1,784,610)
(1,741,327)
43,283
5,665,280
5,665,280
6,139,841
474,561
$ (13,744,692)
$ (13,744,692)
(1,363,037)
$ 12,381,655
78
19,001,963
$ 17,638,926
City of Poway
Required Supplementary Information, Continued
For the year ended June 30, 2010
2. DEFINED BENEFIT PENSION PLANS
A. California Public Employees' Retirement Plan (PERS)
A schedule of funding progress for the year ended June 30, 2010 including the past three actuarial
valuations is presented below.
Miscellaneous
Employees Group
Public Safety
Employees Group
($ Amounts in Thousands)
The City's safety plan becomes part of a Ca1PERS Risk Pool for employers with less than 100 active plan members. As part of
a cost sharing multiple - employer defined benefits plan, disclosures of the schedule of funding progress is not required.
B. Public Agency Retirement Services (PARS)
A schedule of funding progress for the year ended June 30, 2010 including the past three actuarial
valuations is presented below.
Miscellaneous
Employees Group
Actuarial
Valuation
Date
6/30/2004 $
6/30/2007
6/30/2009
($ Amounts in Thousands)
Overfunded
Overfunded
Entry Age
(Unfimded)
Entry Age
(Unfunded)
Actuarial
Actual
Actuarial
Actuarial
Valuation
Asset
Accrued
Accrued
Date
Value
Liability
Liability
6/30/2007
$ 51,942 $
58,792
$ (6,850)
6/30/2008
56,126
63,279
(7,153)
6/30/2009
59,494
69,735
(10,241)
The City's safety plan becomes part of a Ca1PERS Risk Pool for employers with less than 100 active plan members. As part of
a cost sharing multiple - employer defined benefits plan, disclosures of the schedule of funding progress is not required.
B. Public Agency Retirement Services (PARS)
A schedule of funding progress for the year ended June 30, 2010 including the past three actuarial
valuations is presented below.
Miscellaneous
Employees Group
Actuarial
Valuation
Date
6/30/2004 $
6/30/2007
6/30/2009
($ Amounts in Thousands)
Overfunded
Entry Age
(Unfimded)
Actual
Actuarial
Actuarial
Asset
Accrued
Liability as
Value
Liability
Percentage of
Funded
Covered
Covered
Ratio
Payroll
Payroll
88.3% $
12,901
(53.10)%
88.7%
12,891
(55.49)%
85.3%
12,754
(80.30)%
The City's safety plan becomes part of a Ca1PERS Risk Pool for employers with less than 100 active plan members. As part of
a cost sharing multiple - employer defined benefits plan, disclosures of the schedule of funding progress is not required.
B. Public Agency Retirement Services (PARS)
A schedule of funding progress for the year ended June 30, 2010 including the past three actuarial
valuations is presented below.
Miscellaneous
Employees Group
Actuarial
Valuation
Date
6/30/2004 $
6/30/2007
6/30/2009
($ Amounts in Thousands)
79
Overfunded
Entry Age
(Unfunded)
Actual
Actuarial
Actuarial
Asset
Accrued
Accrued
Value
Liability
Liability
- $
4,821
$ (4,821)
1,336
7,799
(6,463)
2,409
9,755
(7,346)
79
Overfunded
(Unfunded)
Actuarial
Liability as
Percentage of
Funded
Covered
Covered
Ratio
Payroll
Payroll
17.1%
$ 11,691
(49.08)%
17.1%
13,167
(49.08)%
24.7%
12,112
(60.65)%
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SUPPLEMENTARY INFORMATION
81
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NON -MAJOR
GOVERNMENTAL FUNDS
' SPECIAL REVENUE FUNDS:
Fire Protection Fund - Used to account for revenues received from the Fire Protection Special Tax. Voters
' approved this special tax in June 1997. It is used to pay for a portion of the costs of fire protection within the
City of Poway.
' 800 MHz Regional Communication System Fund - Used to account for revenues received from the 800 MHz
Regional Communication System Special Tax. Voters approved this special tax in June 1998. It is used to
' pay for the City's share of the County -wide radio backbone system, and a portion of the annual maintenance
expenses.
' Gas Tax Fund - Used to account for revenues received and expenditures made for street maintenance.
Financing is provided by the City's share of State gasoline taxes made pursuant to the California State
Constitution and authorized by the State Legislature.
' Street Improvement Fund - Used to account for revenues received and expenditures made for street
improvements. Financing is provided primarily from developer's traffic mitigation fees. City Ordinance No.
' 80 authorized the collection and the segregation of the funding.
Drainage Fund - Used to account for operations of the flood control and drainage division. Financing is
provided by developer's drainage fees and flood zone fees from the County. Poway Municipal Code Section
' 16.72 requires the segregation of the funding.
' Maintenance Districts Fund - Used for lighting, landscape and maintenance. Costs of the districts are
estimated and property owners are assessed their proportionate share based on an engineer's report. The
assessments are collected via the tax rolls.
' Miscellaneous and Grants Fund - Used to account for grants from various agencies used for operations and
maintenance, and to account for specific in -lieu fees from developers. Financing for grants is provided by
' the State, County and Federal Government. Such grants provide for payment of all current operating costs
and may be used only for specified purposes.
' Community Development Block Grant Fund - Used to account for revenues received and expenditures
made for community development and housing assistance. Financing is provided under agreement with the
county whereby the City is a secondary recipient with funds made available from the U.S. Department of
' Housing and Urban Development under the Housing and Community Development Acts of 1974 and 1977.
Transportation Development Act Fund - Used to account for revenues received and expenditures made for
' transportation development, transit and related studies. Funding is provided to the City as secondary
recipient under agreements with the county and with the San Diego Association of Governments.
1 83
NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS, Continued:
Proposition A Fund - To account for the San Diego County special Proposition A one -half (1/2) cent
transportation sales tax which became effective July 1, 1988. All revenues of this fund must be expended for
certain transportation- related purposes.
Royal Mobilehome Park Administration Fund - Used to account for revenues received and expenditures
made in the administration of the Royal Mobilehome Park.
Traffic Congestion AB2928 Fund - Used to account for revenues received and expenditures made under the
State's Traffic Congestion Relief grant, AB 2928. These funds must be used for street and highway pavement
maintenance, rehabilitation and reconstruction of necessary associated facilities such as drainage and traffic
control devices.
Bette Bendixen Fund - Used to account for money provided by private donors restricted to maintenance of
riding and hiking trails.
Poway Road Beautification Fund - Used to account for money provided by donors restricted to
beautification efforts along Poway Road.
Poway Valley Senior Center Endowment Fund - Used to account for money provided by the City to the
Poway Valley Senior Citizens Corporation restricted for on -going needs of the Senior Center. Interest may
be expended at the organization's direction while expenditures from principal require City Council
approval.
Old Poway Park Tree Fund - Used to account for money provided by a settlement restricted to adding trees
in Old Poway Park.
Poway Public Arts Center Fund - Used to account for funds set aside to further public art in Poway.
Kumeyaay Endowment Fund - Used to account for funds that have been set aside to offer education about
the Kumeyaay Indians and eventually build a Kumeyaay Indian Interpretive Center.
Poway Fine Arts Center Fund - Used to account for funds set aside for the creation of a fine arts center.
Senior Volunteer Patrol Fund - Used to account for funds set aside to purchase supplies and equipment.
Prop 1B Transportation Bond Fund - Used to account for revenues received and expenditures made under
the State's Prop 1B Transportation Bond Fund. These funds must be used for projects that will assist in
reducing local traffic congestion and further deterioration, improving traffic flows, or increasing traffic
safety.
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NON -MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS, Continued:
Storm Water Management Fund - Used to account for revenues received and expenditures made for the
City's storm water pollution prevention program.
Fire Equipment Trust Fund - Used to account for funds that have been set -aside to purchase equipment used
by the City's Fire Department.
Public Art Trust Fund - Used to account for funds that have been set -aside to purchase public art for the City
of Poway.
Regional Arterial Traffic Mitigation -Used to account for new fees required by SANDAG.
Fire Protection Impact Fees - Used to account for revenues received and expenditures made for fire
protection improvements. Financing is provided primarily from developer fees.
BEGIN Program - The Building Equity and Growth in Neighborhoods program (BEGIN) is funded by the
California Department of Housing and Community Development to provide down payment assistance to
low and moderate income first -time home buyers of newly constructed homes.
DEBT SERVICE FUNDS:
Used to account for accumulation of resources for the payment of interest and principal of long -term debt.
PERMANENT FUNDS:
Mary Patricia Ross Trust Fund - Used to account for revenue and expenses provided by a private estate to
finance community park and recreation purposes. The principal must be maintained intact until 2006.
Interest income must also be used to finance such recreational purposes.
' Library Fund - Used to account for a donation to the City which is to be held in perpetual trust. The income
from the principal is to be used for library supplies and service.
1 CAPITAL PROTECTS FUNDS:
Park Improvement Fund - Used to account for the financing and construction of park facilities throughout
the City.
Municipal Improvement Fund - Used to account for financing and construction of major capital facilities
other than those financed by the proprietary funds. Major capital projects include construction of
government buildings, including City Hall, fire station and warehouse facilities.
1 85
City of Poway
Combining Balance Sheet
Non -Major Governmental Funds
June 30, 2010
86
Special Revenue Funds
800 MHz
Fire
Communication
Gas
Street
Protection
System
Tax
Improvement
Drainage
ASSETS
Cash and investments
$
-
$
31,094
1,083,784
$
425,577
$
531,753
Cash and investments with fiscal agents
-
-
-
-
-
Receivables:
Taxes
3,075
31
-
-
4,202
Accounts
-
-
1,925
-
-
Interest
-
53
-
-
-
Lease
-
-
-
-
-
Due from other governments and agencies
-
-
81,847
-
-
Advances to other funds
-
-
-
1,642,944
2,094,732
Total assets
$
3,075
$
31,178 $
1,167,556
$
2,068,521
$
2,630,687
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$
-
$
8,915 $
40,739
-
$
15,072
Due to other funds
-
10,574
-
-
-
Deferred revenue
-
-
-
-
-
Advances from other funds
-
-
-
723,147
Total liabilities
-
19,489
40,739
723,147
15,072
Fund Balances:
Reserved for:
Encumbrances
-
-
190,833
-
980
Advances to other funds
-
-
-
1,642,944
2,094,732
Debt service
-
-
-
-
-
Capital projects
-
-
-
-
-
Total reserved
-
-
1K833
1,642,944
2,095,712
Unreserved:
Designated:
Special revenue funds
-
-
-
-
-
Total unreserved, designated
-
-
-
-
-
Undesignated
3,075
11,689
935,984
(297,570)
519,903
Total fund balances
3,075
11,689
1,126,817
1,345,374
2,615,615
Total liabilities and fund balances
$
3,075
$
31,178 $
1,167,556
$
2,068,521
$
2,630,687
86
Special Revenue Funds
Royal
Community Transportation Mobilehome Traffic Poway
Maintenance Miscellaneous Development Development Park Congestion Bette Road
Districts Grants Block Grant Act Proposition A Administration AB 2928 Bendixen Beautification
$ 6,287,048 $ 2,162,895 $ 19,475 $ 593,437 $ 172,517 $ 4,107,293 $ 338,119 $ 21,077 $ 10,367
7,630 - - - - - -
5,601 48,560 - - - 211,570 - - -
- - - - 11,250 - - -
- 445,762 136,406 - - - 130,364 - -
$ 6,300,279 $ 2,657,217 $ 155,881 $ 593,437 $ 172,517 $ 4,330,113 $ 468,483 $ 21,077 $ 10,367
$ 131,466 $ 88,785 $ 19,475 $ 5,150 - $ 94,706 - - -
- 327,141 136,406 - - - - - -
37,819 - - - - - - -
131,466 453,745 155,881 5,150 - 94,706 - - -
65 139,263 4,965 - - - - - -
- - - - - - 468,483 21,077 10,367
65 139,263 4,965 - - - 468,483 21,077 10,367
6,168,748 2,064,209 - - 172,517 - - - -
6,168,748 2,064,209 - - 172,517 - - -
- - (4,965) 588,287 - 4,235,407 - - -
6,168,813 2,203,472 - 588,287 172,517 4,235,407 468,483 21,077 10,367
$ 6,300,279 $ 2,657,217 $ 155,881 $ 593,437 $ 172,517 $ 4,330,113 $ 468,483 $ 21,077 $ 10,367
(Continued)
87
City of Poway
Combining Balance Sheet
Non -Major Governmental Funds, Continued
June 30, 2010
88
Special Revenue Funds
Poway Valley
Poway
Poway
Senior Center
Old Poway
Public Arts
Kumeyaay
Fine Arts
Endowment
Park Tree
Center
Endowment
Centers
ASSETS
Cash and investments
$ 442,571
$ 5,995
$ 53,566
$ 15,514
$
3,130
Cash and investments with fiscal agents
-
-
-
-
-
Receivables:
Taxes
-
-
-
-
-
Accounts
-
-
-
-
-
Interest
-
-
-
-
-
Lease
-
-
-
-
-
Due from other governments and agencies
-
-
-
-
-
Advances to other funds
-
-
-
-
-
Total assets
$ 442,571
$ 5,995
$ 53,566
$ 15,514
$
3,130
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$ -
$ -
$ -
$ -
$
-
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
Advances from other funds
-
-
-
-
-
Total liabilities
-
-
-
-
-
Fund Balances:
Reserved for:
Encumbrances
-
-
-
-
-
Advances to other funds
-
-
-
-
-
Debt service
-
-
-
-
-
Capital projects
442,571
5,995
53,566
15,514
3,130
Total reserved
442,571
5,995
53,566
15,514
3,130
Unreserved:
Designated:
Special revenue funds
-
-
-
-
-
Total unreserved, designated
-
-
-
Undesignated
-
-
-
-
-
Total fund balances
442,571
5,995
53,566
15,514
3,130
Total liabilities and fund balances
$ 442,571
$ 5,995
$ 53,566
$ 15,514
$
3,130
88
$ 37,734 $ - $ - $ - $ - $ - $ -
228,766 - - - - 161,984 -
206,006 - - - -
472,506 - - 161,984 -
6,300 - - - - - -
- - - - - 91,787 3,733 814 88,353
6,300 - - 91,787 3,733 814 88,353
36,703 - (153,469) 8,925 29,124 - - - -
36,703 - (147,169) 8,925 29,124 91,787 3,733 814 88,353
$ 36,703 $ $ 325,337 $ 8,925 $ 29,124 $ 91,787 $ 3,733 $ 162,798 $ 88,353
(Continued)
89
Permanent
Special Revenue Funds
Funds
Regional
Fire
Senior
Prop1B
Arterial
Protection
Mary
Volunteer
Transportation Storm Water
Fire Equipment
Public Art
Traffic
Impact
BEGIN
Patricia
Patrol
Bond Management
Trust
Trust
Mitigation
Fees
Program
Ross Trust
$ 36,703
$ - $ -
$ 8,925
$ 29,124
$ 91,787
$ 3,733
$ -
$ 88,353
-
- 325,337
-
-
-
-
-
-
-
- -
-
-
162,798
-
$ 36,703
$ - $ 325,337
$ 8,925
$ 29,124
$ 91,787
$ 3,733
$ 162,798
$ 88,353
$ 37,734 $ - $ - $ - $ - $ - $ -
228,766 - - - - 161,984 -
206,006 - - - -
472,506 - - 161,984 -
6,300 - - - - - -
- - - - - 91,787 3,733 814 88,353
6,300 - - 91,787 3,733 814 88,353
36,703 - (153,469) 8,925 29,124 - - - -
36,703 - (147,169) 8,925 29,124 91,787 3,733 814 88,353
$ 36,703 $ $ 325,337 $ 8,925 $ 29,124 $ 91,787 $ 3,733 $ 162,798 $ 88,353
(Continued)
89
City of Poway
Combining Balance Sheet
Non -Major Governmental Funds, Continued
June 30, 2010
LIABILITIES AND
Permanent
Debt Service
Capital Projects
Funds
Fund
Funds
Liabilities:
Total
Accounts payable
Other
$ - $
- $
Debt Service
Park Municipal
Governmental
Library
Fund
Improvement Improvement
Funds
ASSETS
-
-
-
Cash and investments
$ 892,774
$ 2,414,109
$ 1,167,844 $ 3,729
$ 21,042,293
Cash and investments with fiscal agents
-
1,504,047
- -
1,504,047
Receivables:
-
-
Fund Balances:
Taxes
-
-
- -
14,938
Accounts
-
-
- -
592,993
Interest
-
-
- -
53
Lease
-
-
- -
11,250
Due from other governments and agencies
-
-
- -
957,177
Advances to other funds
-
-
- -
3,737,676
Total assets
$ 892,774
$ 3,918,156
$ 1,167,844 $ 3,729
$ 27,860,427
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable
$
$ - $
- $
-
$ 442,042
Due to other funds
-
-
-
864,871
Deferred revenue
-
-
-
37,819
Advances from other funds
-
-
307,228
-
1,236,381
Total liabilities
-
-
307,228
-
2,581,113
Fund Balances:
Reserved for:
Encumbrances
-
-
-
-
342,406
Advances to other funds
-
-
-
-
3,737,676
Debt service
-
3,918,156
-
-
3,918,156
Capital projects
892,774
-
860,616
3,729
2,962,509
Total reserved
892,774
3,918,156
860,616
3,729
10,960,747
Unreserved:
Designated:
Special revenue funds
-
-
-
-
8,405,474
Total unreserved, designated
-
-
-
-
8,405,474
Undesignated
-
-
-
-
5,913,093
Total fund balances
892,774
3,918,156
860,616
3,729
25,279,314
Total liabilities and fund balances
$ 892,774
$ 3,918,156 $
1,167,844 $
3,729
$ 27,860,427
(Concluded)
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City of Poway
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds
For the year ended June 30, 2010
92
Special Revenue Funds
800 MHz
Fire
Communication
Gas
Street
Protection
System
Tax Improvement
Drainage
REVENUES:
Taxes
$ -
$ - $
849,322 $
-
$ 714,729
Intergovernmental
-
-
-
-
-
Charges for services
629,589
135,271
-
-
20,689
Development fees
-
-
-
58,395
7,701
Assessment levied
-
-
-
-
-
Use of money and property
-
499
8,043
7,586
7,109
Other revenues
-
-
7,092
-
-
Total revenues
629,589
135,770
864,457
65,981
750,228
EXPENDITURES:
-
Current:
Public safety
-
153,516
-
-
-
Public works
-
-
303,651
-
595,452
Community services
-
-
-
-
-
Capital outlay
-
-
-
-
1,129,653
Debt service:
Principal
-
-
-
-
-
Interest and fiscal charges
-
-
-
-
-
Total expenditures
-
153,516
303,651
-
1,725,105
REVENUES OVER
(UNDER) EXPENDITURES
629,589
(17,746)
560,806
65,981
(974,877)
OTHER FINANCING SOURCES (USES):
Transfers in
-
_
-
-
_
Transfers out
(628,932)
-
-
Total other financing sources (uses)
(628,932)
-
-
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
657
(17,746)
560,806
65,981
(974,877)
FUND BALANCES:
Beginning of year
2,418
29,435
566,011
1,279,393
3,590,492
End of year
$ 3,075
$ 11,689 $
1,126,817 $
1,345,374
$ 2,615,615
92
Special Revenue Funds
Maintenance
Districts
Miscellaneous
Grants
Community
Development
Block Grant
Transportation
Development
Act
Proposition A
Royal
Mobilehome
Park
Administration
Traffic Poway
Congestion Bette Road
AB 2928 Bendixen Beautification
$ 296,795
$ -
$ -
$ -
$ 2,332,190
$ -
$ - $ $
-
856,871
239,170
5,000
-
-
464,666 -
-
183,873
-
-
-
-
- -
1,886,300
-
-
-
-
-
- -
109,899
39,863
-
11,189
650
4,810,007
2,752 398 196
28,246
-
-
-
3,109
- - -
2,321,240
1,080,607
239,170
16,189
2,332,840
4,813,116
467,418 398 196
2,163,674 - - - 2,254,136 - - -
- 4,617,566 - - -
10,139 720,270 239,170 62,096 - - 201,395 - -
2,173,813 720,270 239,170 62,0% 2,254,136 4,617,566 201,395 - -
147,427 360,337 - (45,907) 78,704 195,550 266,023 398 196
305,730 - - - - - -
- (102,901) - - - - - -
305,730 (102,901) - - - - - - -
453,157 257,436 - (45,907) 78,704 195,550 266,023 398 1%
5,715,656 1,946,036 - 634,194 93,813 4,039,857 202,460 20,679 10,171
$ 6,168,813 $ 2,203,472 $ - $ 588,287 $ 172,517 $ 4,235,407 $ 468,483 $ 21,077 $ 10,367
(Continued)
93
City of Poway
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds, Continued
For the year ended June 30, 2010
94
Special Revenue Funds
Poway Valley
Poway
Poway
Senior Center
Old Poway
Public Arts
Kumeyaay
Fine Arts
Endowment
Park Tree
Center
Endowment
Centers
REVENUES:
Taxes
$ -
$ -
$ -
$ _
$ _
Intergovernmental
_
_
_
Charges for services
-
_
_
Development fees
-
-
_
Assessment levied
_
_
_
Use of money and property
8,374
113
1,014
294
59
Other revenues
_
_
_
Total revenues
8,374
113
1,014
294
59
EXPENDITURES:
Current:
Public safety
-
_
_
_
_
Public works
_
_
_
Community services
-
_
_
_
_
Capital outlay
_
_
_
_
-
Debt service:
Principal
_
_
_
-
_
Interest and fiscal charges
_
_
_
_
-
Total expenditures
_
_
_
_
_
REVENUES OVER
(UNDER) EXPENDITURES
8,374
113
1,014
294
59
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
8,374
113
1,014
294
59
FUND BALANCES:
Beginning of year
434,197
5,882
52,552
15,220
3,071
End of year
$ 442,571
$ 5,995
$ 53,566
$ 15,514
$ 3,130
94
1
778,756 1,452,702 - - - - - -
1,405 - - - - - 934,402 -
1,405 778,756 1,452,702 - - - - 934,402 -
9,320 (776,827) (111,546) 169 851 11,765 3,733 814 1,673
- - 163,151 - - - - - -
163,151 - - - - -
9,320 (776,827) 51,605 169 851 11,765 3,733 814 1,673
27,383 776,827 (198,774) 8,756 28,273 80,022 - - 86,680
$ 36,703 $ - $ (147,169) $ 8,925 $ 29,124 $ 91,787 $ 3,733 $ 814 $ 88,353
(Continued)
95
Permanent
Special Revenue Funds
Funds
Regional
Fire
Senior
Prop1B
Arterial
Protection
Mary
Volunteer
Transportation
Storm Water
Fire Equipment Public Art
Traffic
Impact
BEGIN
Patricia
Patrol
Bond
Management
Trust Trust
Mitigation
Fees
Program
Ross Trust
-
-
-
- -
10,058
-
934,402
-
-
-
1,341,156
-
-
-
-
-
-
-
-
-
-
3,676
-
-
725
1,929
-
169 551
1,707
57
814
1,673
10,000
-
-
- 300
-
-
-
-
10,725
1,929
1,341,156
169 851
11,765
3,733
935,216
1,673
778,756 1,452,702 - - - - - -
1,405 - - - - - 934,402 -
1,405 778,756 1,452,702 - - - - 934,402 -
9,320 (776,827) (111,546) 169 851 11,765 3,733 814 1,673
- - 163,151 - - - - - -
163,151 - - - - -
9,320 (776,827) 51,605 169 851 11,765 3,733 814 1,673
27,383 776,827 (198,774) 8,756 28,273 80,022 - - 86,680
$ 36,703 $ - $ (147,169) $ 8,925 $ 29,124 $ 91,787 $ 3,733 $ 814 $ 88,353
(Continued)
95
City of Poway
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non -Major Governmental Funds, Continued
For the year ended June 30, 2010
EXPENDITURES:
Current:
Public safety
Permanent
Debt Service
Capital Project
-
153,516
Fund
Fund
Fund
-
-
7,548,371
Community services
-
Total
-
-
4,617,566
Capital outlay
Other
-
-
Debt Service
Park Municipal
Governmental
Library
Fund
Improvement Improvement
Funds
REVENUES:
-
815,000
-
-
Taxes
$ -
$ -
$ $ -
$ 4,193,036
Intergovernmental
-
-
- -
2,510,167
Charges for services
-
-
-
2,126,705
Development fees
-
-
21,842 -
275,487
Assessment levied
-
-
- -
1,886,300
Use of money and property
17,118
795,860
21,673 71
5,850,392
Other revenues
-
-
- -
48,747
Total revenues
17,118
795,860
43,515 71
16,890,834
EXPENDITURES:
Current:
Public safety
-
-
-
-
153,516
Public works
-
-
-
-
7,548,371
Community services
-
-
-
-
4,617,566
Capital outlay
-
-
-
-
3,298,530
Debt service:
Principal
-
815,000
-
-
815,000
Interest and fiscal charges
-
1,041,307
-
-
1,041,307
Total expenditures
-
1,856,307
-
-
17,474,290
REVENUES OVER
(UNDER) EXPENDITURES
17,118
(1,060,447)
43,515
71
(583,456)
OTHER FINANCING SOURCES (USES):
Transfers in
-
1,108,809
-
-
1,577,690
Transfers out
(18,534)
(449,045)
-
-
(1,199,412)
Total other financing sources (uses)
(18,534)
659,764
-
-
378,278
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
(1,416)
(400,683)
43,515
71
(205,178)
FUND BALANCES:
Beginning of year
894,190
4,318,839
817,101
3,658
25,484,492
End of year
$ 892,774 $
3,918,156 $
860,616 $
3,729
$ 25,279,314
(Concluded)
96
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
City of Poway RDA Debt Service Fund
For the year ended June 30, 2010
97
Budgeted Amount
Variance with
Original
Final
Actual
Final Budget
Fund balance, July 1, 2009
$ 20,630,806
$ 20,630,806
$ 20,630,806
$ -
Resources (inflows):
Tax increment
37,249,430
37,249,430
39,377,603
2,128,173
Use of money and property
3,537,890
3,537,890
3,227,619
(310,271)
Proceeds from bonds and loans
160,620
160,620
161,049
429
Transfers in
2,233,655
2,233,655
2,190,372
(43,283)
Amount available for appropriation
43,181,595
43,181,595
44,956,643
1,775,048
Charges to appropriation (outflows):
Debt service:
Principal
6,335,000
6,335,000
6,335,000
-
Interest and fiscal charges
14,860,470
14,860,470
13,902,459
958,011
Tax increment reimbursement
6,864,410
6,864,410
2,380,740
4,483,670
Tax shift
-
13,700,882
13,700,882
-
Transfers out
15,737,795
16,212,205
15,329,768
(882,437)
Total charges to appropriations
43,797,675
57,972,967
51,648,849
4,559,244
Excess of resources over (under)
charges to appropriations
(616,080)
(14,791,372)
(6,692,206)
6,334,292
Fund balance, June 30, 2010
$ 20,014,726
$ 5,839,434
$ 13,938,600
$ 6,334,292
97
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fire Protection Special Revenue Fund
For the year ended June 30, 2010
'
'
Budgeted Amounts
Actual
Variance with
'
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009 $
2,418 $ 2,418
$ 2,418
$ -
Resources (inflows):
Charges for services
600,000 600,000
629,589
29,589
'
Amount available for appropriation
600,000 600,000
629,589
29,589
Charges to appropriations (outflows):
'
Transfers out
600,000 600,000
628,932
(28,932)
Total charges to appropriations
600,000 600,000
628,932
(28,932)
'
Excess of resources over (under)
charges to appropriations
- -
657
657
,
Fund balance, June 30, 2010 $
2,418 $ 2,418
$ 3,075
$ 657
98
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
800 MHz Communication System Special Revenue Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Charges for services
Use of money and property
Amount available for appropriation
Charges to appropriations (outflows):
Public safety
Debt service:
Principal
Interest and fiscal charges
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
$ 29,435 $
29,435
$ 29,435
$ -
134,000
134,000
135,271
1,271
1,000
1,000
499
(501)
135,000
135,000
135,770
770
76,000
76,000
153,516
(77,516)
91130
9,130
-
91130
78,580
78,580
-
78,580
163,710
163,710
153,516
10,194
(28,710)
(28,710)
(17,746)
10,964
$ 725 $
725
$ 11,689
$ 10,964
99
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Gas Tax Special Revenue Fund
For the year ended June 30, 2010
100
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 566,011 $
566,011
$ 566,011
$ -
Resources (inflows):
Taxes
819,130
819,130
849,322
30,192
Use of money and property
5,450
5,450
8,043
2,593
Other revenue
-
-
7,092
7,092
Amount available for appropriation
824,580
824,580
864,457
9,685
Charges to appropriations (outflows):
Public works
1,004,833
2,067,633
303,651
1,763,982
Total charges to appropriations
1,004,833
2,067,633
303,651
1,763,982
Excess of resources over (under)
charges to appropriations
(180,253)
(1,243,053)
560,806
1,773,667
Fund balance, June 30, 2010
$ 385,758 $
(677,042)
$ 1,126,817
$ 1,773,667
100
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Street Improvement Special Revenue Fund
For the year ended June 30, 2010
101
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 1,279,393
$ 1,279,393
$ 1,279,393
$ -
Resources (inflows):
Developers fee
90,210
90,210
58,395
(31,815)
Use of money and property
8,320
8,320
7,586
(734)
Amount available for appropriation
98,530
98,530
65,981
(32,549)
Charges to appropriations (outflows):
Capital outlay
-
-
-
-
Total charges to appropriations
-
-
-
-
Excess of resources over (under)
charges to appropriations
98,530
98,530
65,981
(32,549)
Fund balance, June 30, 2010
$ 1,377,923
$ 1,377,923
$ 1,345,374
$ (32,549)
101
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Drainage Special Revenue Fund
For the year ended June 30, 2010
102
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 3,590,492 $
3,590,492
$ 3,590,492
$ -
Resources (inflows):
Taxes
665,060
665,060
714,729
49,669
Charges for services
19,440
19,440
20,689
1,249
Developer fees
33,600
33,600
7,701
(25,899)
Use of money and property
28,910
28,910
7,109
(21,801)
Amount available for appropriation
747,010
747,010
750,228
3,218
Charges to appropriations (outflows):
Public works
629,746
629,746
595,452
34,294
Capital outlay
1,276,542
1,276,542
1,129,653
146,889
Total charges to appropriations
1,906,288
1,906,288
1,725,105
181,183
Excess of resources over (under)
charges to appropriations
(1,159,278)
(1,159,278)
(974,877)
184,401
Fund balance, June 30, 2010
$ 2,431,214 $
2,431,214
$ 2,615,615
$ 184,401
102
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Maintenance Districts Special Revenue Fund
For the year ended June 30, 2010
103
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 5,715,656 $
5,715,656
$ 5,715,656
$ -
Resources (inflows):
Taxes
315,010
315,010
296,795
(18,215)
Assessment levied
1,885,650
1,885,650
1,886,300
650
Use of money and property
144,780
144,780
109,899
(34,881)
Other revenue
-
-
28,246
28,246
Transfers in
305,860
305,860
305,730
(130)
Amount available for appropriation
2,651,300
2,651,300
2,626,970
(24,330)
Charges to appropriations (outflows):
Community services
2,936,238
2,936,238
2,163,674
772,564
Capital outlay
-
49,271
10,139
39,132
Total charges to appropriations
2,936,238
2,985,509
2,173,813
811,696
Excess of resources over (under)
charges to appropriations
(284,938)
(334,209)
453,157
787,366
Fund balance, June 30, 2010
$ 5,430,718 $
5,381,447
$ 6,168,813
$ 787,366
103
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Miscellaneous Grant Special Revenue Fund
For the year ended June 30, 2010
104
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 1,946,036 $
1,946,036
$ 1,946,036
$ -
Resources (inflows):
Intergovernmental
353,600
353,600
856,871
503,271
Developer fees
71,000
71,000
183,873
112,873
Use of money and property
47,220
47,220
39,863
(7,357)
Amount available for appropriation
471,820
471,820
1,080,607
608,787
Charges to appropriations (outflows):
Capital outlay
1,278,224
2,245,409
720,270
1,525,139
Transfers out
100,000
100,000
102,901
(2,901)
Total charges to appropriations
1,378,224
2,345,409
823,171
1,522,238
Excess of resources over (under)
charges to appropriations
(906,404)
(1,873,589)
257,436
2,131,025
Fund balance, June 30, 2010
$ 1,039,632 $
72,447
$ 2,203,472
$ 2,131,025
104
'
'
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Community Development Block Grant Special Revenue Fund
For the year ended June 30, 2010
'
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
'
Fund balance, July 1, 2009
$ - $ -
$ -
$ -
Resources (inflows):
'
Intergovernmental
341,250 341,250
239,170
(102,080)
Amount available for appropriation
341,250 341,250
239,170
(102,080)
'
Charges to appropriations (outflows):
Capital outlay
485,092 485,092
239,170
245,922
'
Total charges to appropriations
485,092 485,092
239,170
245,922
Excess of resources over (under)
'
charges to appropriations
(143,842) (143,842)
-
143,842
Fund balance, June 30, 2010
$ (143,842) $ (143,842)
$ -
$ 143,842
1
'
105
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Transportation Development Act Special Revenue Fund
For the year ended June 30, 2010
106
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 634,194 $
634,194
$ 634,194
$ -
Resources (inflows):
Intergovernmental
5,000
5,000
5,000
Use of money and property
15,000
15,000
11,189
(3,811)
Amount available for appropriation
20,000
20,000
16,189
(3,811)
Charges to appropriations (outflows):
Capital outlay
457,961
457,961
62,096
395,865
Total charges to appropriations
457,961
457,961
62,096
395,865
Excess of resources over (under)
charges to appropriations
(437,961)
(437,961)
(45,907)
392,054
Fund balance, June 30, 2010
$ 196,233 $
196,233
$ 588,287
$ 392,054
106
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Proposition A Special Revenue Fund
For the year ended June 30, 2010
107
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 93,813 $
93,813
$ 93,813
$ -
Resources (inflows):
Taxes
1,309,000
2,276,600
2,332,190
55,590
Use of money and property
5,450
5,450
650
(4,800)
Amount available for appropriation
1,314,450
2,282,050
2,332,840
50,790
Charges to appropriations (outflows):
Public works
1,529,350
2,496,950
2,254,136
242,814
Total charges to appropriations
1,529,350
2,496,950
2,254,136
242,814
Excess of resources over (under)
charges to appropriations
(214,900)
(214,900)
78,704
293,604
Fund balance, June 30, 2010
$ (121,087) $
(121,087)
$ 172,517
$ 293,604
107
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Royal Mobilehome Park Administration Special Revenue Fund
For the year ended June 30, 2010
108
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 4,039,857
$ 4,039,857
$ 4,039,857
$ -
Resources (inflows):
Use of money and property
4,928,670
4,928,670
4,810,007
(118,663)
Other revenue
-
-
3,109
3,109
Amount available for appropriation
4,928,670
4,928,670
4,813,116
(115,554)
Charges to appropriations (outflows):
Community services
4,779,510
4,874,510
4,617,566
256,944
Total charges to appropriations
4,779,510
4,874,510
4,617,566
256,944
Excess of resources over (under)
charges to appropriations
149,160
54,160
195,550
141,390
Fund balance, June 30, 2010
$ 4,189,017
$ 4,094,017
$ 4,235,407
$ 141,390
108
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Traffic Congestion AB 2928 Special Revenue Fund
For the year ended June 30, 2010
109
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 202,460 $
202,460
$ 202,460
$ -
Resources (inflows):
Intergovernmental
483,370
483,370
464,666
(18,704)
Use of money and property
1,360
1,360
2,752
1,392
Amount available for appropriation
484,730
484,730
467,418
(17,312)
Charges to appropriations (outflows):
Capital outlay
483,370
483,370
201,395
281,975
Total charges to appropriations
483,370
483,370
201,395
281,975
Excess of resources over (under)
charges to appropriations
1,360
1,360
266,023
264,663
Fund balance, June 30, 2010
$ 203,820 $
203,820
$ 468,483
$ 264,663
109
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Bette Bendixen Special Revenue Fund
For the year ended June 30, 2010 '
Budgeted Amounts
Actual
Variance with
'
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 20,679 $
20,679
$ 20,679
$ -
Resources (inflows):
Use of money and property
550
550
398
(152)
'
Amount available for appropriation
550
550
398
(152)
Charges to appropriations (outflows):
Capital outlay
20,457
20,457
-
20,457
Total charges to appropriations
20,457
20,457
-
20,457
,
Excess of resources over (under)
charges to appropriations
(19,907)
(19,907)
398
20,305
Fund balance, June 30, 2010
$ 772 $
772
$ 21,077
$ 20,305
110
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Road Beautification Special Revenue Fund
For the year ended June 30, 2010
111
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 10,171 $ 10,171
$ 10,171
$ -
Resources (inflows):
Use of money and property
270 270
196
(74)
Amount available for appropriation
270 270
196
(74)
Excess of resources over (under)
charges to appropriations
270 270
196
(74)
Fund balance, June 30, 2010
$ 10,441 $ 10,441
$ 10,367
$ (74)
111
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Valley Senior Center Endowment Special Revenue Fund
For the year ended June 30, 2010
112
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 434,197 $
434,197
$ 434,197
$ -
Resources (inflows):
Use of money and property
11,450
11,450
8,374
(3,076)
Amount available for appropriation
11,450
11,450
8,374
(3,076)
Charges to appropriations (outflows):
Capital outlay
303,822
303,822
-
303,822
Total charges to appropriations
303,822
303,822
-
303,822
Excess of resources over (under)
charges to appropriations
(292,372)
(292,372)
8,374
300,746
Fund balance, June 30, 2010
$ 141,825 $
141,825
$ 442,571
$ 300,746
112
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Old Poway Park Tree Special Revenue Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Use of money and property
Amount available for appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
$ 5,882 $ 5,882 $
160 160
160 160
160 160
$ 6,042 $ 6,042 $
113
5,882 $ -
113 (47)
113 (47)
113 (47)
5,995 $ (47)
City of Poway '
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Public Arts Center Special Revenue Fund
For the year ended June 30, 2010 '
Fund balance, July 1, 2009
Resources (inflows):
Use of money and property
Amount available for appropriation
Charges to appropriations (outflows):
Capital outlay
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Actual
Variance with
'
Original Final
Amounts
Final Budget
$ 52,552 $
52,552
$ 52,552
$
1,390
1,390
1,014
(376)
'
1,390
1,390
1,014
(376)
'
20,000
20,000
-
20,000
20,000
20,000
-
20,000
,
(18,610)
(18,610)
1,014
19,624
'
$ 33,942 $
33,942
$ 53,566
$ 19,624
114
'
'
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Kumeyaay Endowment Special Revenue Fund
For the year ended June 30, 2010
'
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
'
Fund balance, July 1, 2009
$ 15,220 $
15,220
$ 15,220
$ -
Resources (inflows):
'
Use of money and property
410
410
294
(116)
Amount available for appropriation
410
410
294
(116)
Charges to appropriations (outflows):
Capital outlay
6,963
6,963
-
6,963
'
Total charges to appropriations
6,963
6,963
-
6,963
Excess of resources over (under)
'
charges to appropriations
(6,553)
(6,553)
294
6,847
Fund balance, June 30, 2010
$ 8,667 $
8,667
$ 15,514
$ 6,847
'
115
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Fine Arts Center Special Revenue Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Use of money and property
Amount available for appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Original Final
$ 3,071 $ 3,071
80
80
80
$ 3,151 $
116
80
80
80
Actual Variance with
Amounts Final Budget
$ 3,071 $ -
59 (21)
59 (21)
59
3,151 $ 3,130 $
(21)
(21)
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Senior Volunteer Patrol Special Revenue Fund
For the year ended June 30, 2010
117
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 27,383 $
27,383
$ 27,383
$ -
Resources (inflows):
Use of money and property
410
410
725
315
Other revenue
-
-
10,000
10,000
Amount available for appropriation
-
-
10,725
10,725
Charges to appropriations (outflows):
Capital outlay
15,525
37,090
1,405
35,685
Total charges to appropriations
15,525
37,090
1,405
35,685
Excess of resources over (under)
charges to appropriations
(15,525)
(37,090)
9,320
(24,960)
Fund balance, June 30, 2010
$ 11,858 $
(9,707)
$ 36,703
$ (24,960)
117
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Prop 1B Transportation Bond Special Revenue Fund
For the year ended June 30, 2010
,
'
Budgeted Amounts
Actual
Variance with
'
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 776,827 $
776,827
$ 776,827
$
Resources (inflows):
Intergovernmental
775,650
775,650
-
(775,650)
'
Use of money and property
-
-
1,929
1,929
Amount available for appropriation
-
-
1,929
1,929
'
Charges to appropriations (outflows):
Public works
Capital outlay
755,650
10,610
755,650
-
778,756
-
23,106
-
'
Total charges to appropriations
766,260
755,650
778,756
23,106
Excess
'
of resources over (under)
charges to appropriations
(766,260)
(755,650)
(776,827)
25,035
Fund balance, June 30, 2010
$ 10,567 $
21,177
$ -
$ 25,035
'
t
118
'
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Storm Water Management Special Revenue Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Charges for services
Interfund loans
Transfers in
Amount available for appropriation
Charges to appropriations (outflows):
Public works
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
$ (198,774) $
(198,774)
$ (198,774)
$ -
1,342,260
1,342,260
1,341,156
(1,104)
666,440
666,440
-
(666,440)
189,435
189,435
163,151
(26,284)
2,198,135
2,198,135
1,504,307
(693,828)
1,777,627
1,777,627
1,452,702
(324,925)
1,777,627
1,777,627
1,452,702
(324,925)
420,508
420,508
51,605
(1,018,753)
$ 221,734 $
221,734
$ (147,169)
$ (1,018,753)
119
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fire Equipment Trust Special Revenue Fund
For the year ended June 30, 2010
120
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 8,756 $
8,756
$ 8,756
$ -
Resources (inflows):
Use of money and property
200
200
169
(31)
Amount available for appropriation
200
200
169
(31)
Charges to appropriations (outflows):
Capital outlay
8,630
8,630
-
(8,630)
Total charges to appropriations
8,630
8,630
-
(8,630)
Excess of resources over (under)
charges to appropriations
(8,430)
(8,430)
169
(8,661)
Fund balance, June 30, 2010
$ 326 $
326
$ 8,925
$ (8,661)
120
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Public Art Trust Special Revenue Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Use of money and property
Otber revenue
Amount available for appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
$ 28,273 $ 28,273 $ 28,273 $ -
750 750 551 (199)
- - 300 300
750 750 851 101
750 750 851 101
$ 29,023 $ 29,023 $
121
29,124 $ 101
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Regional Arterial Traffic Mitigation Special Revenue Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Intergovernmental
Use of money and property
Amount available for appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
$ 80,022 $
80,022
$ 80,022
$ -
40,000
40,000
10,058
(29,942)
330
330
1,707
1,377
40,330
40,330
11,765
(28,565)
40,330
40,330
11,765
(28,565)
$ 120,352 $
120,352
$ 91,787
$ (28,565)
122
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fire Protection Impact Fees
For the year ended June 30, 2010
123
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ - $ -
$ -
$ -
Resources (inflows):
Development fees
4,850 4,850
3,676
(1,174)
Use of money and property
- -
57
57
Amount available for appropriation
4,850 4,850
3,733
(1,117)
Excess of resources over (under)
charges to appropriations
4,850 4,850
3,733
(1,117)
Fund balance, June 30, 2010
$ 4,850 $ 4,850
$ 3,733
$ (1,117)
123
City of Poway '
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
BEGIN Program
For the year ended June 30, 2010 '
Fund balance, July 1, 2009
Resources (inflows):
Intergovernmental
Use of money and property
Amount available for appropriation
Charges to appropriations (outflows):
Capital outlay
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
'
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
'
-
-
934,402
934,402
-
-
814
814
'
-
-
935,216
935,216
1,545,000
1,545,000
934,402
(610,598)
1,545,000
1,545,000
934,402
(610,598)
'
(1,545,000)
(1,545,000)
814
1,545,814
'
$ (1,545,000) $
(1,545,000)
$ 814
$ 814
'
124
'
'
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Mary Patricia Ross Trust Permanent Fund
For the year ended June 30, 2010
Budgeted Amounts
Actual
Variance with
'
Original Final
Amounts
Final Budget
'
Fund balance, July 1, 2009 $ 86,680 $ 86,680
$ 86,680
$ -
Resources (inflows):
'
Use of money and property 2,290 2,290
1,673
(617)
Amount available for appropriation 2,290 2,290
1,673
(617)
Excess of resources over (under)
charges to appropriations 2,290 2,290
1,673
(617)
'
Fund balance, June 30, 2010 $ 88,970 $ 88,970
$ 88,353
$ (617)
1
'
125
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Library Permanent Fund
For the year ended June 30, 2010
126
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 894,190 $
894,190
$ 894,190
$ -
Resources (inflows):
Use of money and property
20,040
20,040
17,118
(2,922)
Amount available for appropriation
20,040
20,040
17,118
(2,922)
Charges to appropriations (outflows):
Transfers out
90,040
90,040
18,534
71,506
Total charges to appropriations
90,040
90,040
18,534
71,506
Excess of resources over (under)
charges to appropriations
(70,000)
(70,000)
(1,416)
68,584
Fund balance, June 30, 2010
$ 824,190 $
824,190
$ 892,774
$ 68,584
126
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
City Debt Service Fund
For the year ended June 30, 2010
127
Budgeted Amounts
Actual
Variance with
Original
Final
Amounts
Final Budget
Fund balance, July 1, 2009
$ 4,318,839 $
4,318,839
$ 4,318,839
$ -
Resources (inflows):
Use of money and property
825,730
825,730
795,860
(29,870)
Transfers in
1,085,965
1,085,965
1,108,809
22,844
Amount available for appropriation
1,911,695
1,911,695
1,904,669
(7,026)
Charges to appropriations (outflows):
Debt service:
Principal
815,000
815,000
815,000
-
Interest and fiscal charges
1,047,490
1,047,490
1,041,307
6,183
Transfers out
449,045
449,045
449,045
-
Total charges to appropriations
2,311,535
2,311,535
2,305,352
6,183
Excess of resources over (under)
charges to appropriations
(399,840)
(399,840)
(400,683)
(843)
Fund balance, June 30, 2010
$ 3,918,999 $
3,918,999
$ 3,918,156
$ (843)
127
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Park Improvement Capital Project Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Development fees
Use of money and property
Amount available for appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Original
Final
$ 817,101 $
817,101
91,240
91,240
27,270
27,270
118,510
118,510
118,510
118,510
$ 935,611 $
128
Actual Variance with
Amounts Final Budget
$ 817,101 $ -
935,611 $
21,842
(69,398)
21,673
(5,597)
43,515
(5,597)
43,515
(5,597)
860,616 $
(5,597)
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Municipal Improvement Capital Project Fund
For the year ended June 30, 2010
Fund balance, July 1, 2009
Resources (inflows):
Use of money and property
Amount available for appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30, 2010
Budgeted Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
$ 3,658 $
3,658
$ 3,658
$ -
100
100
71
(29)
100
100
71
(29)
100
100
71
(29)
$ 3,758 $
3,758
$ 3,729
$ (29)
129
This page intentionally left blank.
130
n
I
I
INTERNAL SERVICE FUND
1
Vehicle Maintenance Fund - Used to account for the cost of operating a maintenance facility for automotive
' equipment used by other City departments. Such costs to other departments are billed on a direct cost basis.
The Vehicle Maintenance Fund is responsible for financing replacement vehicles, as necessary.
i
k
l
1
C
1 131
City of Poway
Statement of Net Assets
Internal Service Fund - Vehicle Maintenance Fund
June 30, 2010
ASSETS
Current assets:
Cash and investments
$ 5,536,532
Total current assets
5,536,532
Total assets
5,536,532
LIABILITIES
Current liabilities:
Accounts payable
242,772
Compensated absences
30,798
Total current liabilities
273,570
Total liabilities
273,570
NET ASSETS
Unrestricted
5,262,962
Total net assets
$ 5,262,962
132
City of Poway
Statement of Activities and Changes in Net Assets
Internal Service Fund - Vehicle Maintenance Fund
For the year ended June 30, 2010
OPERATING REVENUES:
Charges for services
$ 2,610,905
Other
4,166
Total operating revenues
2,615,071
OPERATING EXPENSES:
Personnel services
365,802
Maintenance and operations
871,557
Total operating expenses
1,237,359
OPERATING INCOME (LOSS)
1,377,712
NONOPERATING REVENUES:
Interest revenue
107,874
Total nonoperating revenues
107,874
INCOME (LOSS) BEFORE TRANSFERS 1,485,586
TRANSFERS:
Transfers out (2,275,047)
Total transfers (2,275,047)
Changes in net assets (789,461)
NET ASSETS:
Beginning of year 6,052,423
End of year $ 5,262,962
133
City of Poway
Statement of Cash Flows
Internal Service Fund - Vehicle Maintenance Fund
For the year ended June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from users $ 2,615,237
Cash payments to employees for services (368,451)
Cash payments to suppliers of goods or services (662,594)
Net cash provided (used) by operating activities 1,584,192
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers out (2,275,04
Net cash provided (used) by noncapital financing activities (2,275,047)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 107,874
Net cash provided (used) by capital and related financing activities 107,874
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Changes in operating assets and liabilities:
Accounts receivable
Accounts payable
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
134
(582,981)
6,119,513
$ 5,536,532
$ 1,377,712
166
208,963
(2,649)
206,480
$ 1,584,192
iJ
I
d
7
Ll
J
7
FIDUCIARY FUNDS
AGENCY FUNDS
The agency funds are used to account for assets held by the City as an agent. Agency funds include the
following:
Developer Deposits Fund - Used to account for the collection and payments of development deposits from
and on behalf of the collective and individual developers.
South Poway CID No. 1 Bond Deposits Fund - Used to account for debt service payments CFD No. 1 Bond
Deposits collected through property tax assessments remitted to fiscal agent - trustee for payment on bonds.
Parkway Business Center CFD No. 88 -1 Bond Deposits Fund - Used to account for debt service payments
CFD No. 88 -1 Bond Deposits collected through property tax assessments remitted to fiscal agent - trustee for
payment on bonds.
High Valley Roads AD No. 96 -1 Bond Deposits Fund - Used to account for debt service payments AD No. 96-
1 Bond Deposits collected through property tax assessments remitted to fiscal agent - trustee for payment on
bonds.
Old Coach Waterline AD No. 01 -1 Bond Deposits Fund - Used to account for debt service payments AD No.
01 -1 Bond Deposits collected through property tax assessments remitted to fiscal agent - trustee for payment
on bonds.
135
City of Poway
Combining Statement of Fiduciary Net Assets
All Agency Funds
June 30, 2010
136
South
Parkway
High
Old Coach
Poway
Business
Valley
Water
CID No.1
Center
Road
Line
Developer
Bond
CFD No. 88-1
AD No. %-1
AD No. 01 -1
Total
Deposits
Deposits
Bond Deposits
Bond Deposits
Bond Deposits
Agency
Fund
Fund
Fund
Fund
Fund
Funds
ASSETS
Cash and investments
$
4,302,179
$
1,021,023
$ 3,995,283
$ 55,580
$ 59,235
$
9,433,300
Receivables:
Taxes
-
-
-
345
2,724
3,069
Accounts
-
-
1,000,000
-
-
1,000,000
Interest
-
26,669
21,363
-
-
48,032
Cash and investments with fiscal agents
-
1,484,731
1,664,616
53,750
-
3,203,097
Total assets
$
4,302,179
$
2,532,423
$ 6,681,262
$ 109,675
$ 61,959
$
13,687,498
LIABILITIES
Accounts payable
$
223,366
$
$ -
$ 4,235
$ -
$
227,601
Deposits
4,078,813
-
-
-
-
4,078,813
Due to bondholders
-
2,532,423
5,681,262
105,440
61,959
8,381,084
Advances from City of Poway
-
-
1,000,000
-
-
1,000,000
Total liabilities
$
4,302,179
$
2,532,423
$ 6,681,262
$ 109,675
$ 61,959
$
13,687,498
136
n
City of Poway
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
For the year ended June 30, 2010
137
(Continued)
Balance
Balance
July 1, 2009
Additions
Deletions
June 30, 2010
Developer Deposits Fund
Assets:
Cash and investments
$
4,285,579
$
1,540,666
$ (1,524,066)
$
4,302,179
Total assets
$
4,285,579
$
1,540,666
$ (1,524,066)
$
4,302,179
Liabilities:
Accounts payable
$
151,558
$
1,441,355
$ (1,369,547)
$
223,366
Deposits
4,134,021
99,311
(154,519)
4,078,813
Total liabilities
$
4,285,579
$
1,540,666
$ (1,524,066)
$
4,302,179
South Poway CFD No.1
Bond Deposits Fund
Assets:
Cash and investments
$
1,499,392
$
1,764,957
$ (2,243,326)
$
1,021,023
Interest receivable
26,505
26,669
(26,505)
26,669
Cash and investments with fiscal agent
1,597,109
2,258,900
(2,371,278)
1,484,731
Total assets
$
3,123,006
$
4,050,526
$ (4,641,109)
$
2,532,423
Liabilities:
Accounts payable
$
-
$
2,298,328
$ (2,298,328)
$
-
Due to bondholders
$
3,123,006
$
1,752,198
$ (2,342,781)
$
2,532,423
Total liabilities
$
3,123,006
$
4,050,526
$ (4,641,109)
$
2,532,423
Parkway Business Center
CFD No. 88-1 Bond Deposits Fund
Assets:
Cash and investments
$
3,206,910
$
3,566,677
$ (2,778,304)
$
3,995,283
Accounts receivable
1,000,000
-
-
1,000,000
Interest receivable
83,074
21,363
(83,074)
21,363
Cash and investments with fiscal agent
3,675,986
2,829,547
(4,840,917)
1,664,616
Total assets
$
7,965,970
$
6,417,587
$ (7,702,295)
$
6,681,262
Liabilities:
Accounts payable
$
11,377
$
2,848,364
$ (2,859,741)
$
-
Due to bondholders
6,954,593
3,569,223
(4,842,554)
5,681,262
Advances from City of Poway
1,000,000
-
-
1,000,000
Total liabilities
$
7,965,970
$
6,417,587
$ (7,702,295)
$
6,681,262
137
(Continued)
City of Poway
Combining Statement of Changes in Assets and Liabilities
All Agency Funds, Continued
For the year ended June 30, 2010
Balance Balance
High Valley Roads
AD No. 96-1 Bond Deposits Fund
Assets:
Cash and investments
$
52,580
$
55,807
$ (52,807)
$
55,580
Taxes receivable
138
345
(138)
345
Cash and investments with fiscal agents
53,759
49,054
(49,063)
53,750
Total assets
$
106,477
$
105,206
$ (102,008)
$
109,675
Liabilities:
Accounts payable
$
4,235
$
53,289
$ (53,289)
$
4,235
Due to bondholders
102,242
51,917
(48,719)
105,440
Total liabilities
$
106,477
$
105,206
$ (102,008)
$
109,675
Old Coach Waterline
AD No. 2001 -1 Bond Deposits Fund
Assets:
Cash and investments
$
59,607
$
29,083
$ (29,455)
$
59,235
Taxes receivable
-
2,724
-
2,724
Total assets
$
59,607
$
31,807
$ (29,455)
$
61,959
Liabilities:
Due to bondholders
$
59,607
$
31,807
$ (29,455)
$
61,959
Total liabilities
$
59,607
$
31,807
$ (29,455)
$
61,959
All A envy Funds
Assets:
Cash and investments
$
9,104,068
$
6,957,190
$ (6,627,958)
$
9,433,300
Taxes receivable
138
3,069
(138)
3,069
Accounts receivable
1,000,000
-
-
1,000,000
Interest receivable
109,579
48,032
(109,579)
48,032
Cash and investments with fiscal agents
5,326,854
5,137,501
(7,261,258)
3,203,097
Total assets
$
15,540,639
$
12,145,792
$ (13,998,933)
$
13,687,498
Liabilities:
Accounts payable
$
167,170
$
6,641,336
$ (6,580,905)
$
227,601
Deposits
4,134,021
99,311
(154,519)
4,078,813
Due to bondholders
10,239,448
5,405,145
(7,263,509)
8,381,084
Advances from City of Poway
1,000,000
-
-
1,000,000
Total liabilities
$
15,540,639
$
12,145,792
$ (13,998,933)
$
13,687,498
(Concluded)
138
C &L
' Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
' INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE (INCLUDING THE PROVISIONS
CONTAINED IN THE GUIDELINES FOR COMPLIANCE AUDITS) AND OTHER
' MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
' To the Honorable Mayor and Members of the City Council
of the City of Poway
Poway, California
We have audited the financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Poway,
' California (City), as of and for the year ended June 30, 2010, which collectively comprise the
City's basic financial statements as listed in the table of contents. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the
' standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States.
' Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our
' opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the City's internal control over financial reporting.
C
1
Ll
G
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the City's financial statements will not be prevented,
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies
in internal control over financial reporting that might be deficiencies, significant deficiencies, or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
w-w wx-kpa.com
To the Honorable Mayor and Members of the City Council
of the City of Poway
Poway, California
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free
of material misstatement, we performed tests of its compliance with certain provision of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. Such provisions
included those provisions of laws, regulations, contracts, and grant agreements and other
matters. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards.
This report is intended solely for the information and use of management and City Council and
is not intended to be and should not be used by anyone other than these specified parties.
However, this report is a matter of public record and its distribution is not limited.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 22, 2010
140
7
7
7
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F
d
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STATISTICAL SECTION
This part of the City of Poway's comprehensive annual financial report presents detailed
information as context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the government's
overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have changed
over time.
Revenue Capacity
These schedules contain information to help the reader assess the government's
most significant local revenue sources.
Debt Capacity
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government's
ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates
to the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
141
City of Poway
Net Assets by Component,
Current and Prior Four Years
(accrual basis of accounting)
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted - as restated
Total governmental activities net assets
Business -type activities
11
I �
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Tune 30, 2010
June 30, 2009
Tune 30, 2008
Iune 30, 2007
June 30, 2006
283,938
283,534
Unrestricted
$ 46,412,443
$ 36,713,773
$ 28,805,157
$ 21,675,540
$ 16,728,005
78,369,565
99,252,462
101,384,182
99,518,581
98,416,094
(67,276,026)
(71,563,120)
(68,473,402)
(70,862,504)
(78,799,982)
57,505,982
64,403,115
61,715,937
50,331,617
36,344,117
Invested in capital assets, net of related debt
43,508,027
39,127,764
34,657,630
35,055,052
36,472,213
Restricted
280,450
280,469
281,531
283,938
283,534
Unrestricted
35,320,341
34,194,395
32,511,666
30,112,939
25,587,312
Total business -type activities net assets
79,108,818
73,602,628
67,450,827
65,451,929
62,343,059
Primary government
Invested in capital assets, net of related debt
89,920,470
75,841,537
63,462,787
56,730,592
53,200,218
Restricted
78,650,015
99,532,931
101,665,713
99,802,519
98,699,628
Unrestricted
(31,955,685)
(37,368,725)
(35,961,736)
(40,749,565)
(53,212,670)
Total primary government net assets
136,614,800
138,005,743
129,166,764
115,783,546
98,687,176
Note: The City began to report accrual information when it implemented GASB Statement 34 in
fiscal year 2003. The City implemented the retroactive reporting of infrastructure in fiscal year 2007.
The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
142
r
Note: The City began to report accrual information when it implemented GASB Statement 34 in
fiscal year 2003. The City implemented the retroactive reporting of infrastructure in fiscal year 2007.
The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
143
'
City of Poway
Changes in Net Assets for Governmental
Activities
Current and Prior Four Years
(accrual basis of accounting)
'
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
June 30, 2010 Tune 30, 2009
June 30, 2008
June 30, 2007
June 30, 2006
Functional expenses:
'
General Government
$ 23,947,500 $
23,261,446
$ 18,616,222
$ 14,559,177
$ 15,689,334
Public Safety
19,475,481
19,227,914
19,039,199
18,121,264
17,313,198
Public Works
12,595,756
11,213,841
10,607,352
9,100,534
13,023,698
Development Services
4,423,865
5,226,071
5,367,148
4,978,301
'
Community Services
25,213,955
16,195,999
18,329,674
16,964,745
19,510,067
Interest and fiscal charges
14,969,311
16,692,399
17,038,330
19,697,044
16,986,839
'
Total functional expenses
100,625,868
91,817,670
88,997,925
83,421,065
82,523,136
Program revenues:
Charges for services:
'
General Government
91,745
105,084
133,893
176,938
173,484
Public Safety
2,131,729
2,413,197
2,068,632
2,181,971
2,104,975
Public Works
4,479,896
4,868,530
4,327,217
4,011,644
3,512,623
Development Services
1,332,714
1,388,448
1,522,060
1,451,489
'
Community Services
2,821,718
3,033,466
2,935,862
2,894,396
3,908,179
Interest and fiscal charges
-
-
-
-
-
Operating grants and contributions
7,615,477
5,826,044
6,478,997
6,103,045
6,198,885
'
Capital grants and contributions
1,246,555
2,110,463
5,128,657
2,940,273
3,088,436
Total program revenues
19,719,834
19,745,232
22,595,318
19,759,756
18,986,582
'
Total governmental activities
(80,906,034)
(72,072,438)
(66,402,607)
(63,661,309)
(63,536,554)
General revenues:
'
Taxes:
Property taxes
51,526,758
51,190,712
50,669,452
48,048,249
45,725,853
Sales taxes
9,833,390
10,325,455
12,904,265
13,032,518
13,918,879
Motor vehicle license tax
150,641
173,673
225,353
273,727
392,240
'
Transient occupancy tax
367,434
247,787
206,323
202,767
190,097
Franchise taxes
1,491,231
1,590,066
1,497,724
1,588,677
1,399,524
Other Taxes
629,589
597,880
598,965
596,868
609,982
Total taxes
63,999,043
64,125,573
66,102,082
63,742,806
62,236,575
'
Investment earnings
8,287,516
9,879,153
10,639,352
10,569,205
8,508,647
Miscellaneous
1,251,844
607,387
714,405
3,349,606
2,894,418
Sale of capital assets
-
-
-
-
(11,262)
'
Transfers
470,498
147,503
331,088
(12,808)
460,810
Total general revenues and transfers
74,008,901
74,759,616
77,786,927
77,648,809
74,089,188
Change in Net Assets
$ (6,897,133) $
2,687,178
$ 11,384,320
$ 13,987,500
$ 10,552,634
Note: The City began to report accrual information when it implemented GASB Statement 34 in
fiscal year 2003. The City implemented the retroactive reporting of infrastructure in fiscal year 2007.
The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
143
City of Poway
Changes in Net Assets for Business -Type Activities
Current and Prior Four Years
(accrual basis of accounting)
Program revenues:
Charges for services:
Water
Sewer
Captial grants and contributions
Total program revenues
Total business -type activities
General revenues:
Property taxes
Investment earnings
Contributed capital
Miscellaneous
Sale of capital assets
Transfers
Total general revenues and transfers
Change in Net Assets
17,881,695
YearEnded
YearEnded
YearEnded
YearEnded
YearEnded
8,651,968
June 30, 2010
Tune 30, 2009
Tune 30, 2008
June 30, 2007
Tune 30, 2006
Functional expenses:
63,604
66,840
26,533,376
25,366,539
25,247,025
Water
$ 18,226,463
$ 18,697,576
$ 17,534,682
$ 17,371,707
$ 16,009,205
Sewer
7,522,634
8,011,470
7,743,880
7,970,848
8,730,098
Total functional expenses
25,749,097
26,709,046
25,278,562
25,342,555
24,739,303
Program revenues:
Charges for services:
Water
Sewer
Captial grants and contributions
Total program revenues
Total business -type activities
General revenues:
Property taxes
Investment earnings
Contributed capital
Miscellaneous
Sale of capital assets
Transfers
Total general revenues and transfers
Change in Net Assets
17,881,695
16,714,571
16,806,379
16,637,705
15,181,771
8,651,681
8,651,968
8,440,646
7,943,890
7,479,071
-
-
-
63,604
66,840
26,533,376
25,366,539
25,247,025
24,645,199
22,727,682
784,279
(1,342,507)
(31,537)
(697,356)
(2,011,621)
-
-
-
-
309,296
463,177
1,987,778
2,283,493
3,038,852
1,157,563
4,225,637
4,720,039
-
-
-
503,595
933,994
78,030
754,566
738,337
(470,498)
(147,503)
(331,088)
12,808
(4K810)
4,721,911
7,494,308
2,030,435
3,806,226
1,744,386
$ 5,506,190
$ 6,151,801
$ 1,998,898
$ 3,108,870
$ (267,235)
Note: The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
144
City of Poway
Changes in Net Assets for the Primary Government
Current and Prior Four Years
(accrual basis of accounting)
Program revenues:
Governmental Activities
YearEnded
YearEnded
YearEnded
YearEnded
YearEnded
Business -Type Activities
Tune 30, 2010
Tune 30, 2009
Tune 30, 2008
Tune 30, 2007
Tune 30, 2006
Functional expenses:
46,253,210
45,111,771
47,842,343
44,404,955
41,714,264
Governmental Activities
$ 100,625,868
$ 91,817,670
$ 88,997,925
$ 83,421,065
$ 82,523,136
Business -Type Activities
25,749,097
26,709,046
25,278,562
25,342,555
24,739,303
Total functional expenses
126,374,965
118,526,716
114,276,487
108,763,620
107,262,439
Program revenues:
Governmental Activities
19,719,834
19,745,232
22,595,318
19,759,756
18,986,582
Business -Type Activities
26,533,376
25,366,539
25,247,025
24,645,199
22,727,682
Total program revenues
46,253,210
45,111,771
47,842,343
44,404,955
41,714,264
Net (expense)/revenue:
Governmental Activities
(80,906,034)
(72,072,438)
(66,402,607)
(63,661,309)
(63,536,554)
Business -Type Activities
784,279
(1,342,507)
(31,537)
(697,356)
(2,011,621)
Total net (expense) /revenue
(80,121,755)
(73,414,945)
(66,434,144)
(64,358,665)
(65,548,175)
General revenues:
Governmental Activities
73,538,403
74, 612, 113
77 ,455,839
77,661,617
73,628,378
Business -Type Activities
5,192,409
7,641,811
2,361,523
3,793,418
1,895,900
Total general revenues
78,730,812
82,253,924
79,817,362
81,455,035
75,524,278
Transfers:
Governmental Activities
470,498
147,503
331,088
(12,808)
460,810
Business -Type Activities
(470,498)
(147,503)
(331,088)
12,808
(460,810)
Total transfers
_
_
General revenues and transfers:
Governmental Activities
74,008,901
74,759,616
77,786,927
77,648,809
74,089,188
Business -Type Activities
4,721,911
7,494,308
2,030,435
3,806,226
1,435,090
Total general revenues and transfers
78,730,812
82,253,924
79,817,362
81,455,035
75,524,278
Change in Net Assets:
Governmental Activities
(6,897,133)
2,687,178
11,384,320
13,987,500
10,552,634
Business -Type Activities
5,506,190
6,151,801
1,998,898
3,108,870
(576,531)
Total change in net assets
$ (1,390,943)
$ 8,838,979
$ 13,383,218
$ 17,096,370
$ 9,976,103
Note: The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006,
145
City of Poway
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved:
Designated
Undesignated
Total General Fund
All Other Governmental Funds
Reserved
Unreserved:
Designated:
Special revenue funds
Debt service funds
Capital projects funds
Undesignated:
Special revenue funds
Debt service funds
Capital projects funds
Total all Other Governmental Funds
Total Fund Balance
June 30,
2010 2009 2008 2007 2006
$ 4,647,709 $ 5,561,391 $ 8,478,531 $ 7,538,564 $ 7,389,245
31,724,737 32,152,754 31,160,911 30,375,251 27,539,942
$ 36,372,446 $ 37,714,145 $ 39,639,442 $ 37,913,815 $ 34,929,187
$ 51,660,768 $ 62,868,328 $ 55,650,435 $ 43,663,739 $ 39,477,985
146
7,760,635
20,795,704
24,840,402
32,578,654
43,037,658
-
5,913,093
5,982,341
4,676,562
5,278,620
6,014,938
_
_
_
-
37,769,191
$ 78,369,565 $
93,691,071 $
92,905,651 $
91,980,017 $
91,022,749
$ 114,742,011 $
131,405,216 $
132,545,093 $
129,893,832 $
125,951,936
146
June 30,
2005 2004 2003 2002 2001
7,885,013 7,581,391 6,907,055 16,683,177 17,681,990
25,115,075 21,827,076 12,325,729 21,258,117 20,173,503
- - 8,556,645 - -
33,000,088 29,408,467 27,789,429 37,941,294 37,855,493
35,478,892 44,761,898 51,282,639 49,060,668 38,197,024
8,816,961
8,175,996
8,613,436
8,133,105
7,370,213
7,795,241
7,804,756
6,898,403
5,207,265
4,571,924
42,511,597
55,342,242
44,896,736
60,711,652
13,366,748
94,602,691 116,084,892 111,691,214 123,112,690 63,505,909
127,602,779 145,493,359 139,480,643 161,053,984 101,361,402
147
City of Poway
Changes In Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Note: The City implemented GAS13 34 beginning with the fiscal year ended June 30, 2003. Prior to that time, interfund loans where
treated as "Other Financing Sources" and classified as "Proceeds from issuance of debt" in the fund receiving the loan.
148
Year Ended June 30,
2010
2009
2008
2007
Revenues
Taxes
$ 67,411,848 $
66,062,646 $
68,817,462 $
63,810,241
Licenses and permits
433,517
422,948
328,159
330,755
Intergovernmental
2,994,005
2,889,804
3,971,720
4,336,767
Charges for services
3,140,274
2,954,967
2,676,329
4,419,664
Fines and forfeitures
750,551
852,535
803,552
720,949
Use of money and property
12,180,028
14,862,137
15,516,351
16,120,443
Developer Fees
3,711,578
3,897,877
3,780,128
4,509,741
Assessment levied
1,886,300
1,873,179
1,892,326
1,868,567
Other revenues
2,228,662
1,013,135
2,568,693
1,389,762
Total revenues
94,736,763
94,829,228
100,354,720
97,506,889
Expenditures
Current:
General government
6,056,348
6,733,135
7,252,320
9,614,109
Public safety
18,966,380
18,673,036
18,528,701
17,897,811
Public works
9,943,681
8,566,157
8,009,622
6,556,796
Development services
4,475,943
5,279,297
5,420,200
5,028,405
Community services
9,048,983
9,741,990
12,593,136
11,877,425
Capital outlay
27,639,839
17,981,861
18,354,376
14,205,962
Debt service:
Principal
7,150,000
6,855,000
6,560,000
6,470,000
Interest and fiscal charges
14,943,766
16,732,005
17,077,417
17,896,630
Debt Issuance Costs
-
-
-
-
Tax shift
13,700,882
-
-
-
Tax increment reimbursements
2,380,740
6,205,709
5,515,447
4,889,025
Total expenditures
114,306,562
96,768,190
99,311,219
94,436,163
Excess of revenues over (under) expenditures
(19,569,799)
(1,938,962)
1,043,501
3,070,726
Other Financing Sources (Uses)
Proceeds from issuance of debt
161,049
154,734
151,285
148,273
Refunding bond activity -net
-
-
-
(184,586)
Proceeds from sale of capital assets
-
-
-
-
Transfers in (out) net
2,745,545
644,351
1,456,475
907,483
Total other financing sources
2,906,594
799,085
1,607,760
871,170
Net change in fund balance
$ (16,663,205) $
(1,139,877) $
2,651,261 $
3,941,896
Debt service as a percentage of noncapital expenditures
21.3°%
25.8%
26.2%
29.1%
Note: The City implemented GAS13 34 beginning with the fiscal year ended June 30, 2003. Prior to that time, interfund loans where
treated as "Other Financing Sources" and classified as "Proceeds from issuance of debt" in the fund receiving the loan.
148
Year Ended June 30,
2006
2005
2004
2003
2002
2001
$ 62,042,614 $
55,406,112 $
47,368,683 $
43,439,827 $
39,575,352 $
35,840,942
296,935
288,716
296,984
295,471
305,685
309,652
5,796,558
4,637,517
5,445,572
8,313,394
6,183,143
6,026,700
7,557,159
7,607,467
7,449,929
8,452,248
8,192,172
7,851,665
732,633
273,322
251,834
176,291
202,598
239,369
13,459,180
13,535,451
8,152,189
11,924,593
12,584,448
10,735,796
489,210
536,404
1,243,389
1,208,015
591,230
855,799
1,845,859
1,835,519
1,816,524
1,825,528
1,754,096
1,750,613
1,157,139
2,525,614
1,473,492
2,007,778
3,000,545
957,898
93,377,287
86,646,122
73,498,596
77,643,145
72,389,269
64,568,434
9,552,247
11,114,009
10,668,972
10,178,866
8,918,157
8,407,234
16,563,059
17,304,746
15,588,991
13,866,595
12,905,831
11,324,004
11,338,373
4,865,184
3,966,484
4,246,773
3,817,814
3,702,963
11,884,718
10,671,636
7,569,324
7,373,691
6,579,853
6,666,018
18,802,010
31,981,651
31,743,517
32,096,700
22,972,729
17,733,164
5,875,000
6,706,720
7,875,000
14,192,769
9,288,293
6,821,853
17,101,983
16,482,351
15,477,533
18,455,993
15,095,386
11,805,570
-
255,302
2,765,590
-
1,708,370
7,790
1,674,851
2,549,564
1,357,911
780,349
-
-
3,831,350
2,380,488
29,865,057
5,678,795
4,928,042
6,176,365
96,623,591
104,311,651
126,878,379
106,870,531
86,214,475
72,644,961
(3,246,304) (17,665,529) (53,379,783) (29,227,386) (13,825,206) (8,076,527)
149,563
8,499,883
156,029,702
17,856,218
80,781,467
5,975,575
-
(9,301,120)
(99,094,350)
-
(8,005,801)
-
-
232,168
1,110,603
14,600,000
-
-
1,445,898
506,234
1,346,544
658,650
640,108
1,388,450
1,595,461
(62,835)
59,392,499
33,114,868
73,415,774
7,364,025
$ (1,650,843) $
(17,728,364) $
6,012,716 $
3,887,482 $
59,590,568 $
(712,502)
26.4%
27.3%
19.9%
38.9%
38.6%
33.9%
149
City of Poway
Assessed Value of Taxable Property ,
Last Ten Fiscal Years
Fiscal Year
Assessed Value
'
Ended
Personal
Net Taxable
June 30,
Land
Improvments
Property
Total
Exemptions
Value
'
2001
1,717,864,538
2,606,932,440
139,125,104
4,463,922,082
(132,332,496)
4,331,589,586
2002
1,921,113,526
2,857,873,316
162,481,953
4,941,468,795
(118,250,152)
4,823,218,643
2003
2,128,867,560
3,119,821,315
200,414,378
5,449,103,253
(145,945,106)
5,303,158,147
'
2004
2,338,197,043
3,315,524,886
190,767,595
5,844,489,524
(171,519,517)
5,672,970,007
2005
2,611,610,220
3,535,334,922
187,042,681
6,333,987,823
(214,007,737)
6,119,980,086
2006
2,991,468,898
3,840,250,821
245,308,882
7,077,028,601
(217,368,560)
6,859,660,041
,
2007
3,230,084,121
4,191,380,246
278,291,264
7,699,755,631
(229,216,072)
7,470,539,559
2008
3,525,237,590
4,412,172,141
272,804,881
8,210,214,612
(229,932,712)
7,980,281,900
2009
3,647,796,486
4,472,160,193
254,000,489
8,373,957,168
(244,967,192)
8,128,989,976
2010
3,640,861,781
4,548,446,929
288,729,686
8,478,038,396
(261,984,967)
8,216,053,429
'
In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to '
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2 %.
With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point the new assessed
value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base '
has become significantly undervalued when compared to the true market value of the property. Because the true market
value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the
parcels within the City and therefore this amount is not disclosed.
Source: San Diego County Assessors Office
�i
150 1
Change
Estimated
Total
From
Tax
Direct
Prior Year
Revenues
Tax Rate
1277%
5,155,309
0.211%
11.35%
5,616,359
0.211%
9.95%
5,954,586
0.211%
6.97%
6,399,317
0.211%
7.88%
6,895,981
0.211%
12.09%
7,615,898
0.211%
8.91%
8,358,741
0.211%
6.82%
8,939,836
0.211%
1.86%
9,117,319
0.211%
1.07%
9,024,247
0.211%
151
City of Poway
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Total 1%
Property
Tax
Rate
1.000%
1.000%
1.000%
1.000%
1.000%
1.000
1.000%
1.000
1.000%
1.000%
In 1978, California voters passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax. Proposition 13 set the
property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. Because
the rate is fixed at 1.00%, the rate for each taxing agency shares within the 1.00% does not change materially from year -to -year. Rates over the
one percent are for voter approved bond indebtedness
Source: San Diego County Assessors Office
152
Overlapping Rates
Poway
Educational
Palomar
Fiscal Year
City
Unified
Revenue
Community
Ended
Direct
School
San Diego
Augmentation
College
All
June 30,
Rate
District
County
Fund
District
Other
2001
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2002
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2003
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2004
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2005
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2006
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2007
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2008
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2009
0.211%
0.389%
0.167%
0.118%
0.067%
0.047%
2010
0.211%
0.389%
0.167%
0118%
0.067%
0.047%
Rates for Voter Approved Bond
Indebtedness
Total 1 %,
Poway
Total
Fiscal Year
Property
Unified
Property
Ended
Tax
City
School
All
Tax
June 30,
Rate
Rate
District
Other
Rate
2001
1.000%
0.013%
0.000%
0.009%
1.022%
2002
1.000%
0.010%
0.000%
0.009%
1.019%
2003
1.000%
0.010%
0.000%
0.007%
1.018%
2004
1.000%
0.000%
0.052%
0.007%
1.059%
2005
1.000%
0.007%
0.047%
0.006%
1.060%
2006
1.000%
0.007%
0.043%
0.023%
1.072%
2007
1.000%
0.000%
0.046%
0.022%
1.069
2008
1.000%
0.000%
0.045%
0.032%
1.077%
2009
1.000%
0.000%
0.047%
0.035%
1.082%
2010
1.000%
0.000%
0.055%
0.031%
1.086%
Total 1%
Property
Tax
Rate
1.000%
1.000%
1.000%
1.000%
1.000%
1.000
1.000%
1.000
1.000%
1.000%
In 1978, California voters passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax. Proposition 13 set the
property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. Because
the rate is fixed at 1.00%, the rate for each taxing agency shares within the 1.00% does not change materially from year -to -year. Rates over the
one percent are for voter approved bond indebtedness
Source: San Diego County Assessors Office
152
City of Poway
Principal Secured Property Tax Payers
Current Year and Nine Years Ago
Source: San Diego County Assessors Office
153
2010
2001
Taxable
% of Total
Taxable
% of Total
Assessed
City Assessed
Assessed
City Assessed
Secured Value
Rank
Secured Value
Secured Value
Rank
Secured Value
Slough Poway I LLC
$107,626,000
1
1.27%
-
-
Sorento West Properties
98,320,391
2
1.16%
$ -
-
PDP Pomerado LLC
71,061,721
3
0.84%
-
-
PR Stowe LLC
40,508,901
4
0.48%
-
-
Costco Wholesale Corporation
36,032,725
5
0.43%
-
-
Government Employees Insurance Company
35,286,922
6
0.42%
39,375,888
1
0
Sysco Food Services
35,179,588
7
0.41%
22,969,000
3
0.51%
Toray Membrane USA Inc
35,075,350
8
0.41%
-
Fairfield Township LLC
34,411,912
9
0.41%
-
-
Poway Crossings Investors LLC
31,900,500
10
0.38%
-
-
Pacific Star -Poway LLC
-
-
23,755,778
2
0.53%
Western Silver Oaks Partners LP
-
-
21,312,719
4
0.48%
Burnham Pacific Operating Partnership
-
-
20,884,000
5
0.47%
Regency Centers LP
-
-
20,035,681
6
0.45%
First American Title Insurance Co.
-
-
19,696,986
7
0.44%
Toppan Electronics Inc.
-
-
17,959,786
8
0.40%
Braemar Properties LP
-
-
14,210,528
9
0.32%
K -Tube Corp
-
-
13,316,705
10
0.30%
$ 525,404,010
6.20%
$ 213,517,071
5.06%
Source: San Diego County Assessors Office
153
City of Poway
Assessed Value of Taxable Property
Redevelopment Tax Increment Property Tax
Last Ten Fiscal Years
Fiscal Year
Assessed Value
Ended
Personal
Base Year
June 30,
Land
Improvments
Property
Total
Exemptions
Values
2001
756,883,325
1,224,291,373
96,599,318
2,077,774,016
(18,937,627)
(186,287,869)
2002
874,897,982
1,373,748,814
116,806,955
2,365,453,751
(14,732,381)
(186,287,869)
2003
984,697,076
1,545,545,528
167,042,477
2,697,285,081
(26,741,073)
(186,287,869)
2004
1,069,060,617
1,644,074,499
157,368,510
2,870,503,626
(40,683,262)
(186,287,869)
2005
1,190,799,171
1,756,732,835
145,512,135
3,093,044,141
(51,334,639)
(186,287,869)
2006
1,366,315,823
1,923,849,526
205,148,011
3,495,313,360
(54,732,751)
(186,287,869)
2007
1,455,401,981
2,087,221,327
219,066,696
3,761,690,004
(61,891,980)
(186,287,869)
2008
1,590,220,327
2,198,461,319
212,387,349
4,001,068,995
(66,618,692)
(186,287,869)
2009
1,666,217,121
2,208,050,046
191,508,808
4,065,775,975
(66,638,280)
(186,287,869)
2010
1,698,144,577
2,286,610,454
213,648,005
4,198,403,036
(68,141,344)
(186,287,869)
In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1 % based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2 %.
With few exceptions, property is only re- assessed at the time that it is sold to a new owner. At that point the new assessed
value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base
has become significantly undervalued when compared to the true market value of the property. Because the true market
value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the
parcels within the City and therefore this amount is not disclosed.
Source: San Diego County Assessors Office
154
155
Change
Estimated
Total
Net Taxable
From
Tax
Direct
Value
Prior Year
Revenues
Tax Rate
1,872,548,520
20.51%
19,213,050
1.026%
2,164,433,501
15.59%
22,171,626
1.024%
2,484,256,139
14.78%
25,377,236
1.022%
2,643,532,495
6.41%
26,732,816
1.011%
2,855,421,633
8.02%
29,031,365
1.017%
3,254,292,740
13.97%
33,064,572
1.016%
3,513,510,155
7.97%
35,445,525
1.009%
3,748,162,434
6.68%
37,854,271
1.010%
3,812,849,826
1.73%
38,500,704
1.010%
3,943,973,823
3.44°%
39,822,711
1.010%
155
City of Poway
Redevelopment Property Tax Levies and Collections
Last Ten Fiscal Years
Within The Year of Levy Collections
Fiscal Year
Current
Ended
Secured
June 30,
Tax Levy
2001
19,154,296
2002
22,075,411
2003
25,285,115
2004
26,637,504
2005
28,914,339
2006
32,938,833
2007
35,319,838
2008
37,650,893
2009
38,031,377
2010
39,609,344
Source: San Diego County Assessors Office
Current
Percent
Secured
of Levy
Collected
Collected
18,918,099
98.77%
21,850,407
98.98%
25,033,065
99.00%
26,397,127
99.10%
28,583,331
98.86°%
32,397,596
98.36%
34,426,834
97.47%
36,657,780
97.36°%
37,099,651
97.55%
38,592,272
97.43%
156
From Prior
Years' Total
Levies Collections
347,741
370,732
383,654
419,490
387,359
494,520
629,698
930,938
1,465,939
1,495,015
19,265,840
22,221,139
25,416,719
26,816,617
28,970,690
32,892,116
35,056,532
37,588,718
38,565,590
40,087,287
City of Poway
General Property Tax Levies and Collections
Last Ten Fiscal Years
Source: San Diego County Assessors Office
157
Collections
From Prior
Years'
Levies
Total
Collections
208,718
13,750,226
Within The Year of Levy
14,132,237
Fiscal Year
Current
Current
Percent
Ended
Secured
Secured
of Levy
June 30,
Tax Levy
Collected
Collected
2001
13,683,327
13,541,508
98.96%
2002
14,105,425
13,958,405
98.96%
2003
14,461,370
14,250,473
98.54%
2004
14,539,338
14,432,902
99.27%
2005
15,074,377
14,925,461
99.01%
2006
15,924,752
15,669,141
98.39%
2007
16,494,681
16,171,714
98.04%
2008
17,034,013
16,641,698
97.70%
2009
17,295,459
16,805,480
97.17%
2010
16,665,674
16,276,757
97.67%
Source: San Diego County Assessors Office
157
Collections
From Prior
Years'
Levies
Total
Collections
208,718
13,750,226
173,832
14,132,237
213,119
14,463,592
250,896
14,683,798
124,804
15,050,265
153,982
15,823,123
269,763
16,441,477
329,517
16,971,215
378,562
17,184,041
490,668
16,767,426
City of Poway
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
'
1
Governmental Activities
Fiscal Year Tax
Certificates
Ended Allocation
of
Capital
Loan
General
'
June 30, Bonds
Participation
Leases
Payable
Obligation
2001 148,375,000
53,075,000
245,775
42,206
2,390,000
'
2002 214,455,000
51,915,000
199,638
41,416
1,955,000
2003 211,895,000
58,740,000
150,674
40,572
1,500,000
2004 260,910,000
57,410,000
98,711
1,939,667
1,025,000
2005 256,350,000
55,395,000
43,565
2,120,310
525,000
t
2006 251,675,000
54,195,000
-
2,169,647
-
2007 247,395,000
52,810,000
-
2,201,788
-
2008 242,280,000
51,365,000
-
2,250,467
-
'
2009 236,940,000
49,850,000
-
2,282,702
2010 231,385,000
48,255,000
-
2,400,513
-
Notes: Details regarding the city's outstanding debt can be found
in the notes to the financial statements.
Source: City of Poway Finance Department
'
1
158
'
Business -type
Activities
159
Total
Percentage
Revenue
Capital
Contract
Primary
of Personal
Per
Bonds
Leases
Payable
Government
Income
Capita
2,805,000
102,751
5,407
207,041,139
12.45%
4,218
2,675,000
83,462
5,407
271,329,923
15.74%
5,464
2,540,000
62,993
5,407
274,934,646
15.49%
5,517
2,400,000
41,268
5,407
323,830,053
16.85%
6,396
2,250,000
18,213
5,407
316,707,495
15.64%
6,250
2,095,000
-
-
310,134,647
14.36%
6,136
1,930,000
-
-
304,336,788
13.48%
5,987
1,760,000
-
-
297,655,467
12.57%
5,825
1,580,000
-
-
290,652,702
1219%
5,685
1,390,000
-
-
283,430,513
11.98%
5,445
159
City of Poway
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year
Ended
June 30,
Outstanding
General
Bonded Debt
Tax
Allocation
Bonds
Percent of
Assessed Per
Value (a) Capita
2001
148,375,000
3.32%
3,023
2002
214,455,000
434%
4,319
2003
211,895,000
3.89%
4,252
2004
260,910,000
4.46%
5,153
2005
256,350,000
4.05%
5,059
2006
251,675,000
3.56%
4,980
2007
247,395,000
3.21%
4,867
2008
242,280,000
2.95%
4,741
2009
236,940,000
2.83%
4,634
2010
231,385,000
2.73%
4,445
Notes:
Details regarding the city's outstanding debt can be found in the notes to the financial statements
(a) Assessed value has been used because the actual value of taxable property is not readily
available in California.
Source: City of Poway Finance Department
160
i
1
1
1
1
1�
1
1
1
1
1
1
1
1
1
1
1
1
u
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long -term debt, the entire
debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source: California Municipal Statistics, Inc.
' 161
City of Poway
Direct and Overlapping Debt
As of June 30, 2010
2009 -10 Assessed Valuation: $ 8,294,272,220
Redevelopment Incremental Valuation: 3,943,373,823
Adjusted Assessed valuation: $ 4,350,898,397
Estimated Share
Debt
%
of Overlapping
OVERLAPPING TAX AND ASSESSMENT DEBT:
Outstanding Applicable
(a)
Debt
'
Metropolitan Water District
$
264,220,000
0238%
$ 628,844
Poway Unified School District Facilities Improvement Dist No. 2002 -1
177,834,320
25.993%
46,224,475
Poway Unified School District Facilities Improvement Dist No. 2007 -1
98,996,943
26.730%
26,461,883
Palomar Community College District
149,845,000
5.574%
8,352,360
Escondido Union High School District
90,536,275
0.111%
100,495
San Pasqual Union High School District
901,351
2.816%
25,382
Palomar Pomerado Hospital District
417,623,319
8.482%
35,422,810
South Poway Community Facilities District No.1
2,385,000
100.000%
2,385,000
City of Poway Community Facilities District No. 88-1
16,545,000
100.000%
16,545,000
Poway Unified School District Community Improvement Dist No.1
44,935,000
0.391%
175,696
City of Poway 1915 Act Bonds
455,640
100.000%
455,640
'
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$
1,264,277,848
$ 136,777,585
OVERLAPPING GENERAL FUND DEBT:
'
San Diego County General Fund Obligations
$
415,240,000
1.249%
$ 5,186,348
San Diego County Pension Obligations
853,514,739
1.249%
10,660,399
San Diego County Superintendent of Schools General Fund Obligations
21,187,500
1.249%
264,632
Palomar Community College District Certificates of Participation
6,890,000
5.574%
384,049
Escondido Union High School District Certificates of Participation
9,690,000
0.111%
10,756
Poway Unified School District Certificates of Participation
127,465,490
15.166%
19,331,416
TOTAL OVERLAPPING GENERAL FUND DEBT
$
1,433,987,729
$ 35,837,600
'
DEBT
$
2,698,265,577
$ 172,615,185 (b)
TOTAL OVERLAPPING
DIRECT GENERAL FUND DEBT:
City of Poway Certificates of Participation
48,255,000
100.000%
48,255,000
TOTAL DIRECT AND OVERLAPPING DEBT
$
2,746,520,577
$ 220,870,185
Ratio to 2009 -10 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.65%
'
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt ($48,255,000) 1.11%
Combined Total Debt 5.08%
State School Building Aid id Repayable as of 6/30/10: $ -
Notes:
(a) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
'
(b) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds
and non - bonded capital lease obligations.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long -term debt, the entire
debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source: California Municipal Statistics, Inc.
' 161
City of Poway
Legal Debt Margin Information
Last Ten Fiscal Years
FISCAL YEAR
2008
4,310,588,610 $
25%
2007
4,035,420,029
25%
1,077,647,153 1,008,855,007
15% 15%
161,647,073 151,328,251
Legal debt margin 0.00% 0.00% 0.00% 0.00%
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981 -82
fiscal year, each parcel is now assessed at 100% of market value (as of the most
recent change in ownership for that parcel). The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect at the time that the legal
debt margin was enacted by the State of California for local governments located
within the state.
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Source:
City of Poway Finance Department
San Diego County Assessors Office
162
2010
2009
Assessed valuation
$ 4,350,898,397 $
4,394,570,216 $
Conversion percentage
25°%
25%
Adjusted assessed valuation
1,087,724,599
1,098,642,554
Debt limit percentage
15%
15%
Debt limit
163,158,690
164,796,383
Total net debt applicable to limit:
General obligation bonds
-
_
2008
4,310,588,610 $
25%
2007
4,035,420,029
25%
1,077,647,153 1,008,855,007
15% 15%
161,647,073 151,328,251
Legal debt margin 0.00% 0.00% 0.00% 0.00%
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981 -82
fiscal year, each parcel is now assessed at 100% of market value (as of the most
recent change in ownership for that parcel). The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect at the time that the legal
debt margin was enacted by the State of California for local governments located
within the state.
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Source:
City of Poway Finance Department
San Diego County Assessors Office
162
163
FISCAL YEAR
2006
2005
2004
2003
2002
2001
$ 3,683,578,609 $
3,341,441,046 $
3,106,118,400 $
2,894,214,986 $
2,734,305,211 $
2,514,417,338
25%
25%
25%
25%
25%
25%
920,894,652
835,360,262
776,529,600
723,553,747
683,576,303
628,604,335
15%
15%
15%
15%
15%
15%
138,134,198
125,304,039
116,479,440
108,533,062
102,536,445
94,290,650
-
243,728
491,401
466,036
790,018
1,095,502
0.00%
0.19%
0.42%
0.43%
0.77%
1.16%
163
City of Poway
Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year
1.96
13,788,952
Debt Service
Ended
Tax
17,498,444
1.58
June 30,
Increment
Principal
Interest
17,413,271
2.07
17,414,556
2001
$ 20,881,799
$ 2,340,000
$ 8,334,392 $
2002
23,503,772
2,370,000
11,418,952
2003
26,247,819
2,560,000
11,571,940
2004
27,665,286
6,545,000
10,953,444
2005
30,428,470
4,560,000
13,740,175
2006
34,109,857
4,675,000
12,781,669
2007
36,011,865
5,085,000
12,328,271
2008
38,256,892
5,115,000
12,299,556
2009
38,940,302
5,340,000
12,068,451
2010
39,377,603
5,555,000
11,877,545
Notes: Details regarding
the city's outstanding debt can be found in the notes to the financial statements.
Source: City of Poway Finance Department
164
Total Coverage
10,674,392
1.96
13,788,952
1.70
14,131,940
1.86
17,498,444
1.58
18,300,175
1.66
17,456,669
1.95
17,413,271
2.07
17,414,556
2.20
17,408,451
2.24
17,432,545
2.26
City of Poway
Demographic and Economic Statistics
Last Ten Calendar Years
Source:
Population - State of California Department of Finance
Personal Income - State of California Department of Finance
Employment Information - State of California Employment Development Department
165
Per
Capita
Calendar
Personal
Personal
Labor
Unemployment
Year
Population
Income
Income
Force
Rate
2001
49,082
1,663,192,652
33,886
25,600
2.4%
2002
49,658
1,724,076,102
34,719
26,200
3.0%
2003
49,833
1,775,051,460
35,620
26,400
3.2%
2004
50,632
1,922,243,880
37,965
26,900
2.8%
2005
50,675
2,025,072,272
39,962
27,300
2.5%
2006
50,542
2,159,204,782
42,721
27,400
2.4%
2007
50,830
2,258,376,900
44,430
28,000
2.7%
2008
51,103
2,367,911,010
46,336
28,600
3.5%
2009
51,126
2,383,664,395
46,623
28,100
6.1%
2010
52,056
2,365,377,680
45,439
28,000
6.3%
Source:
Population - State of California Department of Finance
Personal Income - State of California Department of Finance
Employment Information - State of California Employment Development Department
165
City of Poway
Principal Employers
Current Year and Four Years Prior
Employer
2010
Percent of
Number of Total
Employees Rank Employment
General Atomics Aeronautical Systems
2,392
1
8.54%
Poway Unified School District
1,341
2
4.79%
Geico Direct
1,250
3
4.46°%
Pomerado Hospital
776
4
277°%
Cohu Inc.
626
5
2.24%
Sysco Food Services of SD
455
5
1.63%
Core Logic Credco
400
7
1.43°%
Digirad Corporation
358
6
1.28°%
Walmart
345
8
1.23°%
Neal Electric Corporation
309
9
1.10%
HNR Framing
Delta Design, Inc.
Disguise, Inc
Cor -O -Van
Total 8,252
Total City Labor Force 28,000
Source:
City of Poway Economic Development Division -by employer
State of California Employment Development Department -total employment
Note:
Information on Principal Employers from nine years back is not available so
information from the year 2006 will be used for the comparison until 2016.
166
29.47%
2006
Percent of
Number of Total
Emplovees Rank Emplovment
758
5
2.77°%
1,800
1
6.57°%
750
6
2.74%
500
8
1.82°%
935
4
3.41%
375
10
1.37°%
1,200
2
4.38°%
1,000
3
3.65°%
600
7
2.19°%
400
9
1.46%
7,560 27.59°%
27,400
City of Poway
Full- time - Equivalent City Employees by Function
Last Six Fiscal Years
Function
2010
2009
2008
2007
2006
2005
2004
General government
40.00
35.00
37.00
38.00
38.00
40.00
40.00
Public Safety (a)
54.00
57.00
57.00
57.00
57.00
58.00
56.00
Public works
83.00
92.00
92.00
90.00
90.00
84.00
80.00
Redevelopment Services
9.00
9.00
9.00
10.00
10.00
11.00
11.00
Community Services
20.00
27.00
28.00
29.00
28.00
28.00
27.00
Development Services
29.00
37.00
36.00
37.00
37.00
36.00
35.00
235.00
257.00
259.00
261.00
260.00
257.00
249.00
Notes:
Amounts shown are the number of positions approved in each operating budget for the fiscal year.
(a) Law enforcement services are provided through contract with the County of San Diego Sheriff.
The City is reporting its ten year history starting with the implentation of GASB 44 in fiscal year 2006,
and in this instance was able to add an additional two years.
Source: City of Poway Human Resources Division
167
City of Poway
Operating Indicators
Current and Prior Four Years
Function
2010
2009
2008
2007
2006
General government:
Business registrations issued
1,192
942
1,240
1,071
792
Vendor payments processed
7,804
8,936
10,230
10,562
10,782
Public Safety:
Arrests made
1,334
1,015
1,052
981
1,898
Fire emergency responses
3,691
3,711
3,907
3,460
3,602
Safety Inspections
1,606
2,104
4,827
4,024
3,196
Development Services:
Building permits issued (1)
1,144
1,157
1,441
2,740
3,048
Building inspections
6,580
7,417
9,280
11,264
11,163
Culture and recreation:
Performing arts center attendance
61,214
68,993
74,420
64,728
67,004
Library- number of volumes in collection
125,977
124,977
124,977
124,977
120,628
Library- number of volumes borrowed
638,494
562,865
545,279
492,501
390,974
Athletic field permts issued
148
144
140
124
214
Highways and streets:
Roads resurfaced in square feet
290,877
600,000
600,000
200,000
16,000
Roads slurry sealed in square feet
4,369,503
4,980,000
5,000,000
5,000,000
5,000,000
Pot holes repaired /work orders (2)
193
147
46
36
35
Water:
Residential water customers
12,492
12,458
12,588
12,556
12,530
Commercial water customers
514
514
510
514
511
Average daily consumption (million /gallons)
9.57
11.61
12.82
13.83
13.37
Sewer:
Residential sewer customers
11,225
11,191
11,175
11,180
11,322
Commercial sewer customers
774
770
771
755
532
Average daily treatment (million/ gallons)
3.15
3.43
3.24
3.25
3.42
Source:
City of Poway Operating Departments
The City is reporting its ten year history starting with the implentation of GASB 44 in fiscal year 2006.
(1) In Fiscal Year 2007 -08 the Development Services Department changed
the method used to
count the number of permits issued which led to the large decrease from the previous year.
(2) In Fiscal Year 2008 -09 the Public Works Department
began reporting pot holes fixed rather than
pot holes work orders.
168
City of Poway
Capital Assets Statistics
Current and Prior Four Years
FnneHnn 2010 2009 2008 2007 2006
Public Safety:
Number of fire stations
3
3
3
3
3
Number of sheriff stations
1
1
1
1
1
Public works:
Total number of streetlights
3,045
3,045
3,026
2,889
2,874
Signal controlled intersections
55
55
55
55
53
Health and welfare
Senior center facilities
1
1
1
1
1
Culture and recreation
Number of Libraries
1
1
1
1
1
Number of Performing Arts Centers
1
1
1
1
1
Number of Parks
18
18
18
18
18
Acres of developed parks
568
568
568
568
568
Number of reserves/ preserves
2
2
2
2
2
Acres of reserves/ preserves
2,400
2,400
2,400
2,400
2,400
Miles of trails
82
82
82
82
82
Highways and streets
Miles of roadway
152
152
152
152
152
Water
Miles of water lines
253
253
253
253
253
Water storage capacity (billon /gallons)
1.11
1.11
1.11
1.11
1.11
Sewer
Miles of sewer lines
175
175
175
175
175
Miles of storm sewers
64
64
64
64
64
Source:
City of Poway Operating Departments
The City is reporting its ten year history starting with the implentation of GASB 44 in fiscal year 2006.
169