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Financial Report 06-30-1999CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 1999 PROGRAM IN FORCE Citizen Disaster Training Cupertino Comes Together www.cupertino.org CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 1999 PREPARED BY: CITY OF CUPERTINO FINANCE DEPARTMENT CAROL A. ATWOOD DIRECTOR OF ADMINISTRATIVE SERVICES NOTES INTRODUCTORY SECTION CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 Table of Contents INTRODUCTORY SECTION Table of Contents Letter of Transmittal Certificate of Award for Excellence in Financial Reporting City Council and Directory of City Officials Organization Chart Commissions and Committees Page i 1 15 16 17 18 FINANCIAL SECTION Report of Independent Certified Public Accountants General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Funds Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types 19 21 22 27¸ 28 30 31 CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 Table of Contents FINANCIAL SECTION (Continued) Notes to General Purpose Financial Statements (1) Summary of Significant Accounting Policies (2) Cash and Investments (3) Related Party Loan (4) Fixed Assets (5) Long-Term Debt (6) Umeserved, Designated Fund Balances (7) Segment Information for Enterprise Funds (8) Commitments and Contingencies (9) Liabilities Under Self-Insurance and Risk Management (10) Other Post Retirement Benefits (11) Deferred Compensation Plan (12) Defmed Benefit Pension Plan (13) Subsequent Events COMBINING, INDIVIDUAL AND COMPARATIVE FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES General Fund: Description of Fund Comparative Balance Sheets Comparative Statements of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds: Description &Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Page 34 41 44 45 46 50 51 51 53 54 54 55 56 58 59 60 61 62 64 ii CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 Table of Contents COMBINING, INDWIDUAL AND COMPARATIVE FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) Comparative Balance Sheets and Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: · Storm Drain Fund · Park Dedication Fund · Environmental Management Fund · Gas Tax Fund · Housing Development Fund · Leadership Cupertino Fund Debt Service Funds: Description of Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Comparative Balance Sheets and Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: · Public Facilities Corporation Fund · Traffic Impact Fund · Vallco 74-3 Fund · Vallco 74-4 Fund Page 66 68 70 72 74 76 79 80 82 84 86 88 90 iii CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 Table of Contents COMBINING, INDIVIDUAL AND COMPARATIVE FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) Capital Project Funds: Description of Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Comparative Balance Sheets and Statement of Revenues, Expenditures, and Changes in Fund Balances: · Capital Improvement Projects Fund · Stevens Creek Boulevard Fund · Creekside Park Fund · Library Remodel · Senior Center Expansion · Four Seasons Park Enterprise Funds: Description of Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows Comparative Balance Sheets, Statements of Revenue, Expenses and Changes in Retained Earnings and Statements of Cash Flows: · Resource Recovery Fund · Blackberry Farm Fund · Cupertino Sports Center Fund · Recreation Programs Fund · Senior Center Fund Page 93 94 96 98 100 102 104 106 108 111 112 114 116 120 123 126 129 132 -- iv CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 Table of Contents COMBINING, INDIVIDUAL AND COMPARATIVE FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) Internal Service Funds: Description of Funds Combining Balance Sheet Combining Statement of Revenues, Expenses and Changes in Retained Earnings Combining Statement of Cash Flows Comparative Balance Sheets, Statements of Revenue, Expenses and Changes in Retained Earnings and Statements of Cash Flows: ,, Management Information Systems Fund · Workers' Compensation Fund · Equipment Revolving Fund · Long-Term Disability Fund Fiduciary Funds: Description of Funds Combining Balance Sheet Combining Statement of Changes in Assets and Liabilities General Fixed Assets Account Group: Description of Account Group Comparative Schedules of General Fixed Assets - by Soume Schedule of General Fixed Assets - by Function and Activity Schedule of Changes in General Fixed Assets - by Function and Activity Page 135 136 138 140 144 147 150 153 157 158 159 161 162 163 164 V CITY OF CUPERTINO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 1999 Table of Contents STATISTICAL SECTION General Govemmental Expenditures by Function - Last Ten Fiscal Years General Governmental Revenues by Source - Last Ten Fiscal Years Property Tax Levies and Collections - Last Ten Fiscal Years Assessed and Estimated Actual Values of Taxable Property - Last Ten Fiscal Years Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years Principal Taxpayers Special Assessment Billings and Collections - Last Ten Fiscal Years Computation of Legal Debt Margin Ratio of General Bonded Debt to Assessed Value and Bonded Debt Per Capita - Last Ten Fiscal Years Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures - Last Ten Fiscal Years Computation of Direct and Overlapping Bonded Debt Demographic Statistics - Last Ten Fiscal Years Property Value, Construction and Bank Deposits - Last Ten Fiscal Years City Profile Table 1 2 3 4 5 6 7 8 9 10 11 12 13 Page 166 168 169 170 171 172 173 174 175 176 177 178 179 180 vi NOTES CITY OF -CUPERTINO November 1, 1999 To the Citizens of Cupertino, Honorable Mayor, Members of the City Council and City Manager The Comprehensive Annual Financial Report (CAFR) for the City of Cupertino (the City) for the fiscal year ended June 30, 1999, is submitted herewith. This annual report consists of three sections. The Introdnetory Section includes 1) the transmittal letter which highlights significant aspects of financial operations during the year and the particular financial issues faced by the City, 2) an organizational chart, and 3) a list of principal officials. The Financial Section includes 1) the independent auditors' report, 2) general purpose financial statements and related notes, 3) combining and individual fund statements, and 4) schedules and supplementary information. The Statistical Section includes several tables of unaudited data depicting the financial history of the City as well as miscellaneous statistics. These financial statements have been prepared by the City's Finance Depmhnent in accordance with generally accepted accounting principles for local governments as prescribed by the Government Accounting Standards Board (GASB). The accuracy of the data presented and the completeness and fairness of the presentations, including all disclosures, are the responsibility of the management of the City. We believe the data is accurate in all material respects and is presented in a manner which fairly sets forth the City's financial position, results of operations, and cash flows of its proprietary funds. Furthermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity have been included. REPORTING ENTITY This Comprehensive Annual Financial Report includes all component units, funds and account groups of the City. It reports all activities for which the City is considered to be financially accountable. The general governmental funds provide a full range of services, including all functions set forth in the organization chart on page 15. This financial report incorporates data for the City of Cupertino and the Cupertino Public Facilities Corporation. The City operates under a Council-City Manager form of government. There are five council members, including the Mayor, who serve four-year i~lms. The City Council appoints the City Manager who is responsible for the daily administration of the City affairs. The City Council also appoints the City Attorney and the City Treasurer. All other employees are appointed by the City Manager. Printed on Recycled Pa~er ECONOMIC CONDITIONS AND OUTLOOK The City of Cupertino is located in Santa Clara County at the southem end of the San Francisco Bay Peninsula. The City is comprised of 10 square miles and is bordered by the cities of San Jose, Saratoga, Sunnyvale, Santa Clara and Los Altos. Cupertino's unique location at the west end of Silicon Valley has earned the reputation of a balanced community with a healthy climate for business and well maintained residential neighborhoods, community parks and public facilities. The excellent reputation of Cupertino's schools has also been an attraction for families wishing to settle in close proximity to jobs in the Santa Clara Valley. Cupertino is the world headquarters for major corporations such as Apple Computer, Compaq Computers, Measurex Corporation and Symantec. Several key divisions of Hewlett-Packard, and Microsoft are located in Cupertino. The City has eight large shopping centers including its own regional mall, Vallco Fashion Park. Sales tax represents the major source of general fund revenue, comprising over 35% of the General Fund revenue. This revenue source has changed dramatically in the last five years. In 1994, retail sales comprised 50% of our sales tax revenue. Limited availability for land development and the loss of sales to other regional malls have contributed to a flattening of sales tax from this sector. Today, retail sales represent 37% of this base with the business to business sector at 38%. 2 Sales Tax Trend 1991 1992 1993 1994 1995 1996 1997 1998 1999 (In thousands) Economic development has become a focal point for Cupertino. Two years ago the City approved over one million square feet of new housing, expansion of the Symantec and Hewlett- Packard facilities, and a new hotel. Ou~ regional mall, recently p~rchased by the Jacobs Group, opened a new Ma~y's and Sears Homelife last year and a fourth anchor store, Dillards is scheduled for construction in 2000. Sevaral new hotels are proposed along with a redevelopment project area for the mall. City of Cupertino Eight £argext Economic Segments (Benchmark Year End 1 Q99. $} 3 MAJOR INITIATIVES The Cupertino City Council has identified major goals for City service delivery. The City's adopted budget addressed these goals in the current year and in the City's long-term planning effort. The emphasis of the goals is to provide for the allocation of resources necessary to achieve the City's mission of serving the public and enhancing the quality of life in Cupertino. Current Year Projects 1. Foster a Sense of Community · Develop a work plan for the Teen Task Force with objectives to positively impact the youth of our community. · Continue cormnunity dialogue on Cupertino's future through the use of focus groups, community forums and the Citizens of Cupertino Cross Cultural Consortium. · Foster a better understanding of cultures within the community through outreach programs, recreational activities, neighborhood programs and expansion of community events. · Create cultural enrichment with the Toyokawa 20~ Anniversary Sister City celebration, Fourth of July daytime activities, outdoor film events and Shakespeare in the Park. · Continue the Leadership Cupertino program in conjunction with the Chamber and DeAnza College to develop future leaders in our commmlity, and expand the program to community youth. 2. Ensure Land Use is Compatible with Community Character · Optimize community benefit with the remaining office, industrial and commercial development approvals. · Evaluate residential building floor area and lot size ratios. · Continue input on annexation of County pockets and pursue annexation if community initiates process. · Aggressively enforce the sign ordinance. 3. Protect and Promote our Public Safety · Expand our neighborhood safety/crime prevention program with the addition of one sergeant for coordinating commllnity programs (75%) and traffic supemdsion (25%). · Hire a CommRuity Relations Coordinator to oversee our neighborhood-based activities including disaster preparedness, neighborhood watch and the citywide garage sale. · Explore possible options with the School District to increase kids safety and decrease traffic congestion in conjunction with transportation to/from school. Current Year Projects, continued 4. Enhance services · Perform a needs assessment, altemative analysis and plan preparation for expansion of the community library. · Explore the feasibility of a "rails to trails" linear park. · Design and expand the Senior Center. · Enhance the care and maintenance of street landscape medians throughout the City. · Ensure a smooth transition plan for senior management. · Explore the widening of Stevens Canyon Road. · Continue with the implementation of the Stevens Creek Boulevard Master Plan. · Complete the DeAnza Boulevard bike lanes. · Continue to aggressively implement the graffiti abatement program. 5. Ensure the Financial Health of the Community · Continue the economic development plan goals and committee to actively pursue opportunities in this area. · Work with the new owners of Vallco Mall to revitalize the regional center. · Target specific businesses for attraction, retention and community involvement. 6. Efficiently Utilize Technology · Inst~l new systems in Finance/Human Resources, Building and GIS. · Perform a needs assessment for a new Parks and Recreation system. · Explore "push technology" for current events to increase communication involvement in the community. · Create a "cultural connection" link on our Web site. and 5 Future Projects The City will continue to focus on a number of important long-term issues. These issues include holding the line on City expenditures, partnership oppommities with our schools, county library and other agencies, continued automation, funding of the capital improvement program and meeting economic development needs. Automation will continue to be a high priority in the years to come. Installations currently in process include a new Finance/Human Resources system, a building permits system, Parks and Recreation registration system. Projects in 1999/2000 will include an automated records management system, upgrade of our GIS system and implementation of the Tech 2005 plan. The City will continue implementation of the "HEART OF THE CITY" project which links the major activity centers on Stevens Creek Boulevard fi.om Highway 85 to the eastern city limits. The project will serve as the physical, social and cultural center for the City, revitalizing retail services, restaurants, higher density housing, public open space and public transit. Finally, the City is pursuing a Redevelopment Area in conjunction with expansion and renovation at our regional mall. Such growth will directly impact our schools, sen, ice efforts and traffic configurations. In addition, capital projects include a new Senior Center and a proposed new library. 6 Department Focus - Efforts and Accomplishments Each year we feature a department in the 'City that has made notable contributions to the organization. This year, the spotlight falls on the Community Outreach Department. Fiscal year 1998-99 marked the establishment of the Community Outreach Department. Although small in size, the employees have accomplished much. Highlights for 1998-99 included: Hired a Sheriffs community resources officer to coordinate Cupertino's Neighborhood Watch, traffic, and other safety programs. Citizens now have a place to express their concerns regarding neighborhood and traffic safety within the City. Worked with a citizen's group to conduct the first annual Diversity Forum and to coordinate other neighborhood building activities, such as a cultural video series. Provided business safety checks to give small businesses an opportunity to have their layout and procedures scrutinized with the goal of a safer, more efficient operation. Continued to provide Emergency Response Training for Cupertino residents. The 20 hour course prepares residents to respond to disasters within their neighborhoods. More than 200 residents have now graduated fi.om the course. · Increased neighborhood earthquake preparedness training. More than a dozen neighborhoods have participated in the training. · Promoted community block parties whereby the City coordinates all permits needed with other agencies and provides set up and insurance for the neighborhood. We congratulate the Community Outreach Department for their achievements in all their projects and wish them continued success in the growth of their programs. 7 FINANCIAL INFORMATION Accounting System and Budgetary Control' The City's accounting records are maintained on a modified accrual basis of accounting for all governmental fund types and agency funds. Under this basis, revenues are recognized when susceptible to accrual, i.e., both measurable and available, and expenditures, other than interest on long-term obligations which is recorded when paid, are recognized when the liability is incurred. The accrual basis of accounting is used by the proprietary fund types where revenues are recognized when earned and expenses are recorded when incurred. In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Such controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against losses from unauthorized use of disposition and the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management. The City's internal accounting controls adequately safeguard assets and provide reasonable assurance of the proper recording of financial transactions. The City's budget is a detailed operating plan which identifies estimated costs and results in relation to estimated revenues. The budget includes 1) the programs, projects, services and activities to be provided during the fiscal year; 2) estimated revenue available to finance the operating plan; and 3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is the functional level. Note l(c) of the general purpose financial statements summarizes the budgetary roles of various City officials and the timetable for their various budgetary actions according to the City Charter. 8 General Government Functions The general government functions are accounted for in the general, special revenue, debt service and capital project funds. These funds acenunt for the majority of the City's operating revenues and expenditures. Revenues for general government functions totaled approximately $31.2 million in fiscal year 1998/99, an increase of 1.89% over the preceding fiscal year. The following table presents revenue by source and the related changes fitom the pri6r year. Revenues by Source Taxes Use of Money & Property Intergovernmental Charges for Services Fines and Forfeitures Other Revenue Revenues Classified by Source Governmental Fund Types Amount Percent of Total Increase/(Decrease) over previous year Amount Percent $18,837,091 60.45% $(1,610,512) (7.88)% 3,114,595 10.00 338,154 12.18 5,650,954 18.14 2,048,358 56.86 2,578,015 8.27 211,639 8.94 503,223 1.61 261,930 108.55 475,266 1.53 (671,188) (58.54) Total $31,159,144 100.00% $ 578,381 1.89% Taxes decreased primarily due to a $1.6 million decrease in park dedication fees associated entirely with the level of development projects per year. Intergovernmental revenues increased due to two million dollars received for Measure A gas tax projects. Other revenues decreased due to a reduction in housing mitigation fees which also correlate to development projects. 9 Expenditures Classified by Major Service Area Governmental Fund Types Expenditures for general governmental functions for fiscal year 1998/99 totaled approximately $34.5 million, an increase from the preceding fiscal year of 17.07%. Expenditures by major service area and the related changes from the prior fiscal year are shown in the following table: Expenditures by Service Area Amount Pement of Total Increase/(Decrease) over previous year Amount Percent Administration $ 1,133,408 Law Enforcement 4,892,704 Public Information 631,035 Administrative Services 2,008,976 Recreation Services 1,363,410 Commumty Development 2,101,942 Public Works 9,167,386 Capital Outlay 8,05%124 Principal 2,215,000 Interest 2,963,897 3.28% $ 276,572 32.28% 14.17 499,385 11.37 1.83 40,368 6.83 5.82 17,648 0.89 3.95 198,588 17.05 6.09 251,452 13.59 26.54 119,592 1.32 23.33 3,646,833 ' 82.65 6.41 105,000 4.98 8.58 (119,345) (3.87) Total $34,536,882 100.00% $5,036,093 17.07% Law Enforcement increased this year with the expansion of a community outreach program and school resource officer program. Capital Project expenditures increased due to an expanded street program and the receipt of $2 million dollars in Measure A gas tax projects. Proprietary Operations Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprise where the intent is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The following table shows actual revenues, expenses (including depreciation) and results of operations for the fiscal year ended June 30, 1999. 10 Revenues, Expenses, and Results of Operations Enterprise Funds Operating Operating Operating Net Revenues Expenses Income/(loss) Imcome/(loss) Resource Recovery Blackberry Farm Cupertino Sports Center Recreation Programs Senior Center $2,315,586 $1,862,711 $452,875 $542,514 1,454,620 1,221,219 233,401 112,838 859,357 881,019 (21,662) 368,062 1,409,606 1,208,084 201,522 (34,799) 336,625 355,171 (18,546) (2,377) Totals $6,375,794 $5,528,204 $847,590 $986,238 All enterprise activity performed as expected. Internal Service Funds are used to account for the financing of services provided by one depmhnent or agency to other departments or agencies of the City on a cost-reimbursement basis. The following table shows actual revenues, expenses (including depreciation) and results of operations for the fiscal year ended June 30, 1999. Revenues, Expenses, and Results of Operations Internal Service Funds Operating Operating Operating Net Revenues Expenses Income/(loss) Income/(loss) Management Information Systems $ 391,328 Workers' Compensation 118,856 Equipment Revolving 657,350 Long-Term Disability 53,693 $ 467,456 $ (76,128) $281,946 186,947 (68,091) (17,740) 621,678 35,672 154,410 55,714 (2~021) 864 Totals $1~221~227 $1,331~795 $(110~568) $419~480 Resources are being accumulated ia the Equipment Revolving Fund and Management Information Systems fund to provide for future replacement of existing equipment. _ 11 Fiduciary Operations The City maintains one agency fund. This agency fund accounts for all deposits fi.om third parties under the control of City departments. Debt Administration As of June 30, 1999, the City had no outstanding tax-supported general obligation bonds. The City did however, have other types of debt issues outstanding in the General Long Term Debt Account Group. These issues included $49.2 million in certificates of participation and $730,000 of special assessment debt with governmental commitment. Cash Management The City maintains a cash and investment pool for all City funds. The City's funds are invested by the City Treasurer according to the investment policy adopted by the City Council. The objectives of the policy are legality, safety, liquidity, diversity and yield. The policy addresses soundness of financial institutions and the types of investments permitted by the California government code. The City investments include obligations of the U.S. Treasury, agencies and instrumentalities, conunercial paper, banker's acceptances, corporate bonds, repurchase agreements, certificates of deposit and the State Treasurer's Local Agency Investment Fund. Total investment earnings for all funds was approximately $3 million. Risk Management The City maintains a program of commemial insurance combined with self insurance for substantially all of its governmental operations except for major construction projects and contractor-supplied services. In such circumstances, insurance to protect the City is provided by each contractor. 12 INDEPENDENT AUDIT The City's Charter requires an annual audit of the financial records by an independent certified public accounting finn selected by the City Council. The City's general purpose financial statements were audited by Grant Thornton, LLP, and their opinion thereon is included in the Financial Section of this report. CERTIFICATE OF ACHIF~VEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Report'mg to the City of Cupertino for its Comprehensive Annual Financial Report for the year ended June 30, 1998. In order to be awarded a Certificate of Achievemant, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such repons 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 our current report continues to meet the program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS I would like to express my appreciation to the City employees, City Manager, and the members of the City Council for their interest in conducting the financial operations of the City in a responsible manner. Special thanks to the Finance staff; Sue MacGowan, Sophy Cheng, Lois Thornton, and Joanne Okazaki for their continued support and dedication. Special recognition goes to Jennifer Chang, Sandy Olson-Miller, and Dorothy Steenfott for their efforts in the preparation and production of this report. Respectfully submitted, Carol A. Atwood Director of.Administrative Seradces 13 NOTES 14 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Cupertino, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1998 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 ~n government accounting and financial reporting. ~q~ President Executive Director CITY OF CUPERTINO, CALIFORNIA Fiscal Year 1998/99 CITY COUNCIL Mayor - Wally Dean Vice Mayor - John Statton Councilmember - Don Bumett Councilmember - Michael Chang Councilmember - Sandra James DIRECTORY OF CITY OFFICIALS Donald D. Brown - City Manager Charles T. Kilian - City Attorney Robert Cowan - Director of Community Development Steve Dowling - Director of Parks and Recreation Carol Atwood - Director of Administrative Services Bert Viskovich - Director of Public Works Donna Krey - Public Information Officer Kimberly Smith - City Clerk Bill Woska - Human Resources Manager 16 © 17 CITY OF CUPERTINO, CALIFORNIA Fiscal Year 1998/99 COMMISSIONS AND COMMITTEES CUPERTINO HOUSING COIVlMrlq~E Kathy Robinson, Chairperson Cecilia K. Fu, Vice Chairperson Joseph Coddington Sylvia Machamer Richard Schuster FINE ARTS COMAIISSION Janet Mob_r, Chairperson Charlene Pal, Vice Cha/rperson Stephen Beard Hema K. Kundargi Carl Orr Mary Sivert Rita Young PUBLIC SAFETY COMMISSION Harvey Checkman, Ch~erson Andrew Zander, Vice Chairperson John Drexler Marc Majewski Charles Pickett RECREATION COMMISSION Edye Stein, Chairperson Saleem Shaikh, Vice Chairperson Frank Jelinch Richard Lowenthal Kris Wang ECONOMIC DEVELOPMENT COMMITTEE Carol Atwood Linda Asbury Don Brown Robert Cowan Paula Davis Steve Dowling Sandra James Bill Jones Donna Lawler John Statton · Dowthy Steenfott Bert Viskovich TELECOMMUNICATIONS COMMISSION Salvatore Algefi, Chaixpersoh L.T. Guttadanro, Vice Chairperson David Eggleston William Mannion Ernest Tsui LIBRARY COMMISSION Yuhfen Diana Wu, Chairperson Catherine Gordon, Vice Chairperson Mary Minow Sheila Mohan Charles Pow PLANNING COMlVIISSION David Doyle, Chairperson Andrea Harris, Vice Chairperson Charles Corr Pa~ick Kwok Jerry Stevens AUDIT COMMITTEE Carol Atwood, Chairperson Tom Hall, Vice Chairperson Don Brown Wally Dean Sandra James Emily Wagner 18 FINANCIAL SE C TION 19 NOTES 20 Accountants and Management ConsuRants Grant Thornton LLP The US Member Firm of Grant Thornton International Grant Thornton RETORT OF IiN-DEpE~NrDENT CER'I il~Le,D PURT.TC AGGOUNTANTS Honorable M~or and ~ of the C~ Coxmo~ City of Cupeniao, c~l;fornia We have audited the ~c_,~r,anyin~ general purpose fmanchl ~t,,'aents of the C~ of Cupertino, California, as of June 30, 1999 and for the year then ended, as listed in the table of contents. These general purpose I~nane;~] ~he responsibili~' of the C_iy's rn=-%~-am~t. Our respo-~hilky is to ~pr~s~ an opinion on these general ~ sta~m~u based on our aud/t. We coaducted our audit in -¢.~Mance with generally a_~__~ ;,,a~;.g standards. Those suadards require that we plan and per{otto the ~,,d;r to obtain reasonable assurance about whether the general purpose 6.a.cial sr. ate~te are free of material mk--tat~mea~ An andit iach,~- ~ami.i.~ on a tm basis, evidence supporting the amounts and dlscloswes in the general puzpose fit~ncial .=-~t,.m,.,~., An =rtit also ind,,,t~ ~ssessing the ~e,~,nti.~ priaciples used and significant eatim~ made b~ m~nag~mem, as well a$ erah~ti.~ the ox;zrall fin~-eial st=t~aent presemafio= We belk~e that our ~' pmvic~ a r~a~onable b~ for our opiaion. our opinion, th~ general purlx~ financial ~,-.ments rden'ed to abov~ pr~mt f~iy, in fi~nci~l position of the C~ of c%r,,'xfino, C_alEorah ~s of June 30, 1999 md the r~suks of ~s operations and ~ fl~ of The y~r 2000 mppb.,.~-,~,y in{ormation is not a ~ ~ of ~ ~ ~ ~-~ ~ ~ ~ ~1~ ~n~ ~ ~ ~1 ~,~.: S~ ~ We ~ ~ ~ lim~ ~ ~ ~ ~ of ~ of m~.~ ~i.~ ~ m~ of m~ ~ ~,~.m,~ofeaeC~of~i,.~.Cartor~ Su~ iabrmazioa tm I~a ~al~?,-a to tl~ =,,~;,~ pmc~/u~ ~pli~l in tl~ .,,~i. oftl~ g,.-.,,,l purpo~ i;...,-~ ~mmnt~ aad, in our ~ i; fairly pnmmeck in all mambl rap.,-.., ia ~lation to the ~ purpo~ R~flt..;,1 --~t,---,~.~s t~lr,,~, ~s a whnl. The s,~,i,-,i~! section ili_~_~ in the table of contems is mx a required pan of the basic general purpose fu~nchl iafor,~i,-,,~. Suite 1100 One California Street -- San Francisco, CA 9411 l Tel: 415 986-3900 Fax: 415 986-3916 21 CITY OF CUPERTINO, CALIJ~ORNIA Combined Balance Sheet All Fund Types and Account Groups June 30, 1999 Assets and other debits Governmental Fund Types Special Debt Capital General Revenue Service Projects Assets: Cash andinvesm~ents $ 26,754,169 $ 3,664,762 $ 5,357,862 $ Receivables: Accounts 1,350,119 1,827,729 Loans 1,121,551 1,697,572 Assessments 565,000 Other assets 42,167 Fixed assets (net, where applicable, of accumulated depreciation) Other debits: Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets and other debits $ 29,268,006 $ 7,190,063 $ 5,922,862 $ See accompanying notes to general pu~osc financial statements. 5,240,046 139,226 5,379,272 22 Fiduciary Proprietary Fund Types Fund Types Internal Enterprise Service Agency Account Groups General General Totals Fixed Long-Term (Memorandum Assets Debt only) 3,462,153 $ 1,270,535 $ 311,856 249 934,276 72,115 1,618,336 13,835 $ $ 45,763,362 3,629,179 2,819,123 565,000 114,282 92,288,793 94,841,405 5,357,542 5,357,542 44,532,458 44,532,458 $ 4,708,285 $ 2,961,235 $ 13,835 $ 92,288,793 $ 49,890,000 $ 197,622,351 (confiuued) 23 CITY OF CUPERTENO, CALIFORNIA Combined Balance Sheet All Fund Types and Account Groups = Continued June 30, 1999 Liabilities, equity and other credits Liabilities: Accounts payable and accruals Accrued sick leave a~d vacat~un Deposits Deferred revenue Special assessment debt with governmental cornmillllellt Certificates of Pamcipation Total liabilities Equity and other credits: InvesUnent m general fixed assets Contributed capital Retained earnings Fund balances: Reserved for encumbrances Reserved for debt service Reserved for loans receivable Reserved for affordable housing Reserved for public access television Unreserved: Designated Undesignated Total equity and other credits Total liabilities, equity and other credits See accompanying notes to general purpose finnncial statements. Governmental Fund Types Special Debt Capital General Revenue Service Projects 674,003 $ 172,302 $ 320 $ 1,601,747 39,448 990,268 39,595 573,101 565,000 271,544 3,305,613 784,851 565,320 271,544 190,959 2,095,200 917,243 5,357,542 1,121,551 1,124~71 1,763~10 1,312,016 14,806,304 6,768,153 25,962,393 29,268,006 $ 3,185,541 4,190,485 6,405,212 5,357,542 5,107,728 7,190,063 $ 5,922,862 $ 5,379,272 24 Fiduciary Proprietary Fund Types Fund Types Account Groups General General Internal Fixed Long-Term Ente~rise Service Agency Assets Debt Totals (Memorandum on~y) $ 292,291 $ 415,323 $ $ $ 158,931 12,834 157,627 13,835 608,849 428,157 13,835 730,000 49,160,000 1,825,783 1,812,960 1,161,730 1,177,696 730,000 49,160,000 49,890,000 55,868,169 382,283 4,099,436 2,150,795 92,288,793 92,288,793 382,283 6,250,231 3,203,402 5,357,542 2,246,022 1,763,410 1,312,016 14,806,304 14,144,179 4,099,436 2,533,078 92,288,793 $ 4,708,285 $ 2,961,235 $ 13,835 $ 92,288,793 $ 49,890,000 $ 141,754,182 197,622,351 25 NOTES 26 CITY OF CUPERTINO, CALIFORNIA Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types For the Fiscal Year Ended June 30, 1999 Taxes Use of money and property Intergovernmental Charges for services Fines and forfeitures Other revenue Total revenues Expenditures: Administration Law enforcement Public Information Administrative services Recreation services Community development Public works Capital outlay Debt service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Governmantal Fund Types Totals Special Debt Capital (Memorandum General Revenue Service Projects only) $ 18,067,176 $ 528,829 $ 241,086 $ $ 18,837,091 2,417,202 384,396 312,997 3,114,595 2,763,282 2,756,466 131,206 5,650,954 2,256,443 321,572 2,578,015 503,223 503,223 145,854 18,079 311,333 475,266 26,153,180 4,009,342 554,083 442,539 3 I, 159,14~ 1,133,408 4,892,704 631,035 1,993~234 1,363,410 1,871,2,42 7,285,440 15,742 230,700 1,881,946 894,040 7,165,084 1,133,408 4,892,704 631,035 2,008,976 1,363,410 2,101,942 9,167,386 8,059,124 2,215,000 2,215,000 2,963,897 2,963,897 19,170,473 3,022,428 5,178,897 7,165,084 34,536,882 6,982,707 986,914 (4,624,814) (6,722,545) (3,377,738) 1,116,350 67,000 4,633,000 13,000,170 18,816,520 (18,541,170) (375,000) (266,350) (19,182,520) (17,424,820) (308,000) 4,633,000 12,733,820 (366,000) (10,442,113) 678,914 8,186 6,011,275 (3,743,738) 36,404,506 5,726,298 5,349,356 (903,547) 46,576,613 $ 25,962,393 $ 6,405,212 $ 5,357,542 $ 5,107,728 $ 42,832,875 Other financing sources (uses): Operating t~ansfers m Operating transfers out Total other financing sources (uses) Excess (deficianey) of revenues over (under) expenditures and other fiunncmg sources (uses) Fund balances, beginning of y~ar Fund balances, end of year See accompanying notes to general puqx~e financial smmmants. 27 CITY OF CUPERTINO, CALIFORNIA Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General, Special Revenue and Debt Service Funds For the Fiscal Year Ended June 30, 1999 Taxes Use of money and property Intergovernmental Charges for services Fines and forfeitures Other revenue Total revenues Expenditures: Admini~rafion Law enforcement Public Information AdminisWafive services Recreation services Community development Public works Capi*,a] Outlay Debt service: Principal lnteres~ General Fund Variance Amended Favorable Budget Actual (Unfavorable) 17,973,000 $ 18,067,176 $ 94,176 2,408,000 2,417,202 9,202 2,641,331 2,763,282 121,951 2,128,000 2,256,443 128,443 505,000 503,223 ( 1,777) 21,000 145,854 124,854 25,676,331 26,153,180 476,849 1,168,017 1,133,408 34,609 5,008,479 4,892,~04 115,775 631A65 631,035 430 2,106,707 1,993,234 113,473 1,365,016 1,363,410 1,606 1,871,868 1,871,242 626 7,915,628 7,285,440 630,188 Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating tran~fer~ in Operating u'ansfem om Total other financing souren~ (uses) Excess (deficiency) of revenues over (under) expenditures and other financing anurce~ Fund balances, beginning of year Fund balances, end of yenr See accompanying notes to general purpose financial statements. 20,067,180 19,170,473 896,707 5,609,151 6,982,707 1,373,556 1,116,350 1,116,350 (18,541,170) (18,541,170) (17,424,820) (17,424,820) (11,815,669) (10,442,113) 1,373,556 36,404,506 36,404,506 24,588,837 $ 25,962,393 $ 1,373,556 Special Revenue Funds Amended Favorable Budget Actual (Unfavorable) 550,000 $ 528,829$ (21,171) $ 354,000 384,396 30,396 2,673,000 2,756,466 83,466 361,000 321,572 (39,428) 21,000 18,079 (2,921 ) Debt Service Funds Amended Budg~ Actual Favorable (Unfavorable) 245,000 $ 325,000 241,086 $ 312,997 (3,914) (12,003) 3,959,000 4,009,342 50,342 570,000 554,083 (15,917) 20,900 15,742 5,158 315,416 230,700 84,716 2,529,263 1,881,946 647,317 2,869,372 894,040 1,975,332 2,215,000 2,215,000 2,988,450 2,963,897 24,553 5,734,951 3,022,428 2,712,523 5,203,450 5,178,897 24,553 ( 1,775,951 ) 986,914 2,762,865 4,633,450 4,633,000 67,000 6%000 4,633,000 4,633,000 (375,000) (375,000) (308,000) (308,000) 4,633,000 4,633,000 (2,083,951) 678,914 2,762,865 (450) 8,186 8,636 5,726,298 5,726,298 5,349,356 5,349,356 3,642,347 $ 6,405,212 $ 2,762,865 $ 5,348,906 $ 5,357,542 $ 8,636 29 CITY OF CUPERTINO, CALIFORNIA Combined Stntement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types For the Fiscal Year Ended June 30, 1999 Operating revenues: Charges for scrvices $ Other Total operating revenues Operating expenses: Salaries and benefits Materials and supplies Contractual services Insurance and claims Depreciation Tolal operating expenses Operating income (loss) Nonoperating revenues (expenses): Connection fees Interest income Other Total nonoperafing revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers in Operating transfers out Net operating transfers Net income Retained earnings, beginning ofyeer Retained earnings, end of year $ See aeeompanymg notes to general purpose financial statements. 30 Totals Internal (Memorandum Enterprise Service only) 6,225,583 $ 1,221,227 $ 7,446,810 150,211 150,211 6,375,794 1,221,227 7,597,021 1,351,116 310,788 1,661,904 804,644 189,855 994,499 3,281,263 205,384 3,486,647 230,051 230,051 91,181 395,717 486,898 5,528,204 1,331,795 6,859,999 847,590 (110,568) 737,022 173,648 57,825 231,473 71,223 71,223 173,648 129,048 302,696 1,021,238 18,480 1,039,718 440,000 401,000 841,000 (475,000) (475,000) (35,000) 401,000 366,000 986,238 419,480 1,405,718 3,113,198 1,731,315 4,844,513 4,099,436 $ 2,150,795 $ 6,250,231 CITY OF CUPERTINO, CALIFORNm_A Combined Statement of Cash Flows All Proprietary Fund Types For the Fiscal Year Ended June 30, 1999 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital ~nancmg activities: Operating transfers m Operating trausfers out Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities: Purchase of fixed assets Net cash used by capital and related financing activities Cash flows provided by investing activilies: Interest received Net cash pmviclcd by investing activities Net increase (decrease) in cash and inveslments Cash and investments, begirmin~o of year Cash and inveslments, end of year Totals Internal (Memorandum Enterprise Service only) 6,444,522 $ 1,220,978 $ 7,665,500 (4,158,526) (568,237) (4,726,763) (1,351,116) (321,094) (1,672,210) 934,880 331,647 1.266,527 440,000 401,000 841,000 (475,000) (475,000) (35,000) 401,000 366,000 (216,123) (946,175) (1,162,298) (216,123) (946,175) (I,162,298) 173,648 57,825 231,473 173,648 57,825 231J73 857,405 (155,703) 701,702 2,604,749 1~26,238 4,030,987 $ 3,462,154 $ 1,270,535 $ 4,732,689 31 CITY OF CUPERTINO, CALIFORNIA Combined Statement of Cash Flows All Proprietary Fund Types For the Fiscal Year Ended June 30, 1999 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 Decrease {increase) m other assets Decrease (increase) m accounts receivable Increase (decrease) m accounts payable and accruals Increase (decrease) in vacation payable Increase (decrease) in deposits Total adjustments Net cash provided (used) by operating activities See accompanying notes to general purpose financial statements. Totals Internal (Memorandum Enterprise Service only) $ 847,590 $ (110,568) $ 737,022 91,181 395,717 486,898 (1,300) (1,300) (19,166) (249) (19,415) (144,479) 58,353 (86,126) 71,857 (10,306) 61,551 87,896 87,896 87,289 442,215 529,504 $ 934,879 $ 331,647 $ 1,266,526 32 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS 33 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (1) SUMMARY OF SIGNIFICANT ACCOLrNTING POLICIES (a) Reporting Entity The City of Cupertino, California (the City) was incorporated on October 3, 1955, under the laws of the State of California. The City operates under a Council - City Manager form of government and provides services through the following depamuents: Administrative Services, Community Development, City Manager, Parks and Recreation, Public Information, and Public Works/Engineering. Fire services are provided by the Santa Clara County Fire District, and the City contracts with the Santa Clara County Sheriff's Departs.eat for police services, and with the Los Altos Garbage Company for garbage and recycling services. The accompanying general purpose financial statements include all funds, account groups, and boards and commissions that are controlled by the City Council. The general purpose financial statements include the City's blended component unit, an entity for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City's operations and so data from this unit is combined with the City. Blended component unit - The Cupertino Public Facilities Corporation (the Corporation) was incorporated in May 1986, under the Nonprofit Public Benefit Corporation Law of the State of California. The Corporation was organized as a nonprofit corporation for the purpose of assisting the City in the acquisition, construction, and financing of public improvements which are of public benefit to the City. The-Corporation, a~er acquiring certain properties from the City leases these back to the City. The lease money provides the funds for the debt service for the Certificates of Participation issued by the Corporation to acquire the properties. The City Council acts as the Board of Directors of the Corporation. The Mayor nnd Vice Mayor of the City have been elected President and Vice President, respectively, of the Corporation. The City Clerk has been elected Secretary, and the City's Director of Admini~wative Services has been appointed Tl'e~ttl'~, 34 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (b) M~asur~n~nt Focus, Basis of Accountin~ and Basis of Presentation The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self- balancing set of accounts. Fund accounting segregates funds according to their intended pm'pose and is used to assist management in demonstrating compliance 'with finance-related legal and conU'actual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental funds - These funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are both "measurable and available"). "Measurable" means the amount of the Iransaction can be determined and "available" means collectible within the cull'~t p~'iod or soon enough thereafter to pay liabilities of the current period. The City cousiders all revenues available if they are collected within 90 days ~ year end except for property taxes which are considered available if conected within 60 days. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recoEni~'ed when due. Property taxes, utility taxes, franchise taxes, interest and special assessments are susceptible to accrual. Sales taxes collected and held by the state at year end on behalf of the City are also recoEni~,ed as revenue. ExPenditure.driven grants are reco?i~ed as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Other receipts and taxe~ are reco~,ni~l as revenue when the cash is received. _ 35 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Co) Measurement Focus, Basis of Accounting and Basis of Presentation (continued) Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes, excluding major capital projects. The debt service funds account for the accmnulation of resources for and the payment of general long-terra debt not being financed bY proprietary funds. The capital projects funds account for the acquisition or construction of major capital projects not being financed by pwprietary funds. Proprietary funds - These funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities arc incurred. The City has elected, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 20 (Accounting and Financial Reporting for Proprietary Funds and .Other Governmental Activities that Use Proprietary Fund Accounting), to apply all applicable GASB pronouncements as well as any pronouncements issued by the Financial Accounting Standards Board before and after November 30, 1989, except for those that conflict with or contradict GASB pronouncements. Proprietary funds include the following fund types: Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business; or where the intent of management is to recover the costs (including depreciation) of providing continuing services to the public through user charges; or where management has decided that the determination of revenues earned, costs incurred and/or net income is necessary for capital maintenance, public policy or management accountability. 36 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (b) Measurement Focus, Basis of Accountin~ and Basis of Presentation (continued) Internal service funds account for operations that provide services to other City departments on a cost-reimbursement basis. Fiduciary funds - The agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. These funds arc used to account for assets that the City holds £or others in an agency capacity. Account Groups - Thc general.fixed assets account group is nsed to account for fixed assets not accounted for in proprietary funds. Thc general long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary funds. (¢) Budgetary Practices Thc budget of the City is a detailed operating plan which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) the programs, projects, services and activities to be provided during thc fiscal year; (2) estimated revenue available to finance the operating plan; and (3) the estimated spending requirements of the opcrating plan. The budget represents a process through which policy decisions are made, implemented and conlxolled. The City charter prohibits expending funds for which there is no legal appropriation. All appropriations lapse at fiscal year end. In May of each year, the City Manags~ submits to the City Council a proposed budget for the fiscal yest bo~nnlng July 1. PubUc hearings on the proposed budget are held during the month of June and the budgets for all fund types are legally adopted by Resolution prior to June 30. 37 (1) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June30,1999 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (c) Budgetary Practices (continued) The City Manager is responsible for con~xolling the City's expenditures in accordance with the adopted budget. The City Manager is authorized to transfer appropriations within functional expenditure classifications. Any revision which requires transfers between functional expenditure classifications or increases total appropriations mus~ be approved by the City Council. Requests for additional personnel or capital outlay also require the approval of the City Council. The legal level of budgetary control is at the functional level. The City Council made $9,742,778 in supplemental appropriations during the year as follows: general fund $9,517,604; special revenue funds $225,174. Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principals. Budget information is presented for the general, special revenue and debt service funds only. Capital project funds are budgeted on a long-term project-by-project basis end, hence, budgets for these funds are not presented in the general purpose financial statements. Encumbrance accounting is utilized during the year for budgetary control purposes. Encumbrances outstanding at year-end do not constitute expenditures or liabilities because the commitments are re-appropriated as part of an approved revision to the following fiscal year's budget. At year-end, outstanding encumbrances are reported as reservations of fund balance in the governmental fund types. (d) Ca~ and Inves~nents The City pools its cash resources, consisting of cash and investments, of all funds for investment except for res~ri, 'cted fimds generally held by an outside fiscal agent. Cash amounts are reported net of outstanding warrants. Investments are stated at fair value. Interest earned on pooled cash resources is allocated to funds based on the ratio of the individual funds' monthly cash balance to the total pool. 38 O) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 SUMMARY OF SIGNIFICANT ACCO~G POLICIES (continued) (e) Fixed Assets Fixed assets used in the City's governmental fund types are recorded in the General Fixed Assets Account Group at cost or estimated historical cost if purchased or constructed. Donated fixed assets are recorded at their estimated fair value on the date donated. Depreciation is not recorded on general fixed assets. Public domain (infrastructure) fixed assets consisting of roads, bridges, curbs, gutters, streets, sidewalks, drainage end lighting systems are not capitalized. Fixed assets of the proprietary fund types are recorded at cost. Donated fixed assets are recorded at their estimated fair value on the date donated. Depreciation is recorded for proprietary fund type fixed assets using the straight-line method over the following useful lives: Vehicles Su~.t equipment Water equipment Office equipment 31 years 4 - 10 years 3 - 20 years 3 - 50 years 3 - 5 years The City capitalizes fixed assets exceeding $1,000. Claims end Judl~nents Payable Claims and judgments payable are accrued when the liability is incurred and the amount can be reasonably estimated. Claims and jud?nents payable am recorded in an internal service fund for workexs' compema~on and long-t~,~ disability and in the ge~amd fund for general liability. (g) Com~ Absences Vested accumulated vacation and sick leave is recorded as an expenditm'e/expense and liability for all funds as thc benefits accrue to employees. 39 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (1) SLrlVIMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (h) Fund Equity (i) O) Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds as additions to fund equity. Reservations of fund balances represent those portions of fund balances which are not available for appropriation or expenditure or are legally restricted for a specific future use. Designated fund balances represent .management's tentative plans for future use of financial resources. Property Tax Calendar All property taxes are levied and collected by the County of Santa Clara. Secured taxes are levied on July 1, are due in two installments on November 1 and March 1 and become delinquent on December 10 and April 10. Unsecured taxes are due on July 1 and become delinquent on August 31. The lien date for secured and un.qecured prop~dy taxes is March 1. The City, in fiscal year 1993-94, adopted an alternative method of property tax distribution (the "Teeter Plan"). Under this method, the City receives 100% of its secured prop~ty tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made by the County during the year. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions constituting reimbursements to a fund for expenditures/expense~ initially made fi'om it that are properly applicable to anoth~ fund, ar~ recorded as expenditures/expanses in the reimbursing fund and as reductiong of expanditure~/expeuses hi the fund that is reimbursed. Nonrecurring or non murine p~rmanent mmsfers of equity between funds am z~orted as residual equity transfers. All other interfund transfers are reported as operating transfea's. 4O (1) (2) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (k) Statement of Cash Flows For purposes of reporting cash flows for the City's proprietary funds, pooled cash and investments are considered cash equivalents as the proprietary funds can access pooled cash and investments in a manner similar to a demand deposit accotmt. (1) Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned "memorandum only" because they do not present consolidated financial information and are presented only to facilitate financial analysis. These columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. CASH AND INVESTMENTS The City's pooled idle funds are invested pursuant to investment policy guidelines adopted by the City Council. The objectives of the policy are to invest funds to the fullest extent possible and to invest in accordance with provisions of California Government Code with the priority of safety, liquidity and yield. The policy addresses the safekeeping of the securities, types of investment instruments, the percentage of the portfolio which may be invested, terms to maturity, reporting requirements, and policy renewal. The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments". 41 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (2) CASH AND INVESTMENTS (continued) (a) Deposits Deposits are covered by FDIC insurance, up to $100,000 with the balance above that mount secured by collateral in conformance with State law. The collateral for deposits in Federal and State chartered banks is held in safekeeping by an authorized "Agent of Depository" reco~m~ized by the California State Department of Banking Division. The collateral for deposits with savings and loan associations generally is held in safekeeping by the Federal Home Loan Bank in San Francisco as a third-party trustee. These securities are physically held in an undivided pool for all California public agency depositors. As of June 30, 1999, the financial institutions that the City holds the deposits with were undereollateralized. This oversight has been corrected by the banks subsequent to the year end. The State Public Administrative office for public agencies and the Federal Home Loan Bank maintain detailed records of the security pool which are coordinated and updated weekly. The carrying amount of the City's demand accounts deposited with financial institutions was $3,073,175 and the bank balance was $4,203,831 at June 30, 1999 as follows: Demand Accounts lnmared by FDIC Demand Accounts Collaterized Demand Accounts Uncollatefialized Total Deposits Carrying Bank % of Amount Balance Portfolio $ 240,025 $ 240,025 5.71% 2,263,403 3,166,685 84.73% 569~747 797,121 9.56% $3~073,175 $4~203,831 100.00% 42 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June30,1999 (2) CASH AND INVESTMENTS (continued) (a) Deposits (continued) The City's deposits and investments are categorized to give an indication of the level of credit risk assumed. Category 1 includes deposits insured or collateralized with securities held by the City or by the City's agent in the City's name. Category 2 includes deposits collateralized with securities held by the pledging institution's trust depa~haent or agent in the City's name. Category 3 includes deposits which are uncollateralized, or collatcralized but the pledged securities are not held in the City's name. Bank Category 1 Category 3 Balance Demand Accounts $ 205,378 Cash with Fiscal Agent 34,647 Total D~posit $ 240,025 Inves'anents $ 3,963,806 $4,169,184 - 0 - 34,647 $ 3,963~806 $4,203,831 Investments made by the City are classified as to credit risk into ~ categories. Category I includes securities insured or registered, or held by the City or its agent ia the City's name. Category 2 includes securities unln~alred and unregistered, and held by the countcrparty's trust deparunent or agent in thc City's name. Category 3 includes securities uninsured and unregistered, and held by the countcrparty or by its trust depadment or agent, but not in the City's name. 43 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (2) CASH AND INVESTMENTS (continued) (b) Investments (continued) The City's investment portfolio is stated at fair value based on quotes obtained at June 30, 1999. It is generally the City's intent to hold investments until maturity. At year end, the City's investment balances were as follows: Fair Category 2 Category 3 Value U.S. Treasury Bills U.S. Agency Securities Corporate Bonds Repurchase Agreements Subtotal Investments not subject to categorization: State Local Agency Investment Fund Total investments $ -- $21,924,155 $21,924,155 -- 6,313,366 6,313,366 0 0 -- $ 4~996,813 -- 4,996,813 $ 4,996,813 $28,237,521 33,234,334 9,455,853 $42,690,187 (3) RELATED PARTY LOAN As a t~,m of employment, the City provided to an executive manager a $239,000 homing relocation loan. This 30-year loan bears interest at six percent per annum and requi~s monthly principal and interest payments. At June 30, 1999, the balance of the loan was $210,996. This year the City adopted a housing assistance program for executive managers. In August, 1999, the City made a $686,500 loan under this policy. This 40 year loan bears interest at 4.49% per annum, the 11" district cost of funds and requires monthly principal and interest payments. In addition, there is a two percent deferral on the interest rate for the riva five years of the loan. (4) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 FIXED ASSETS A summary of changes in general fixed assets follows: Land Buildings Improvements other than builcVmgs Balance Balance July 1, 1998 Additions Deletions June 30, 1999 $53,024,454 $7,810,626 -- $60,835,080 10,834,147 552,054 -- 11,386,201 18,650,532 406,084 -- 19,056,616 Equipment 684,059 326,837 -- 1,010,896 $83,193,192 $9,095,601 -- $92,288,793 The following is a summary of proprietary fund fixed assets: Enteq0rise Land Improvements Equipment Less: accumulated depreci on $ 389,929 638,464 269~347 1,297,740 (363~464) $ 934~.76 Internal Service 2,965~556 2,965,556 (1,347~.20) $1,618~336 45 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (5) LONG-TERM DEBT The following is a summary of the changes in long-term debt: Balance July 1, 1998 Retirements Balance June 30, 1999 Certificates 1915 Act of Participation Bonds Total $51,205,000 $900,000 $52,105,000 (2,045,000) (170,000) (2,215,000) $49,160,000 $730,000 $49,890,000 (a) Cupertino Public Facilities Corporation Certificates of Participation Certificates of participation debt instalments were issued by the Cup=rfino Public Facilities Corporation to pwvide financing for the construction of the Community Center, remodeling of City Hall and the Library in July of 1986, to purchase Wilson Park in 1989, to finance Memorial Park Expansion in 1990, and to purchase Blackberry Farm and Fremont Older site in 1991. Cupertino'Public Facilities Corporation, as lessor, leased real property to the City (under the lease agreement with the lessee) and assigned thc base rental payments to the trustee for the benefit of the owners of the certificates of participation. The rental payments arc scheduled to be sufficient in both time and amount, to pay when due the principal and interest of the certificates. In December 1992, the City issued $10,785,000 of C~(tificates of Participation with the effective interest rates ranging from 2.875% to 5.75% (the 1992 c~tificates) to provide for the advance refunding of the City Hall/Libra~y Certificates of Participation Series 1986 with effective interest rates ranging from 4.75% to 7.75% (the 1986 certificates). Net proceeds of the 1992 certificates were placed in an irrevocable trust to provide future debt service payments on the 1986 certificates. As a result, the 1986 ce~ificates are no longer considered outstanding. The City reduced its total debt service by approximately $2,859,000 over the life of the new debt and obtained an economic gain (differeuce between the present values of the debt service paymants on the old and new debt) of $504,605. CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (5) LONG-TERIVl DEBT (continued) (a) Cupertino Public Facilities Corporation Certificates of Participation (continued) In December 1992, the City issued $14,585,000 of Certificates of Participation with the effective interest rates ranging from 3% to 6.25% (the 1992 certificates) to provide for the advance refunding of the Wilson Park Certificates of Participation Series 1989 with effective interest rates ranging fa'om 5.9% to 6.8% .(the 1989 certificates), and the Memorial Park Expansion Certificates of Participation Series 1990 with effective interest rates ranging from 5.9% to 7.25% (the 1990 certificates). Net proceeds of the 1992 certificates were placed in an irrevocable trust to provide future debt service payments on the 1989 and the 1990 certificates. As a result, the 1989 and 1990 certificates are no longer considered outstanding. The City reduced its total debt service by approximately $568,000 over the life of the new debt and obtained an economic gain (difference between the present values of the debt service payments on the old and new debt) of $465,563. In April 1993, the City issued $36,600,000 of Certificates of Participation with the effective interest rates ranging from 3.25% to 5.75% (the 1993 certificates) to provide for the advance refunding of the Open Space Certificates of Participation Series 1991 with effective interest rates ranging from 5.4% to 7.125% (the 1991 certificates). Net proceeds of the 1993 certificates were placed in an irrevocable Irast to provide future debt service payments on the 1991 certificates. As a result, the 1991 certificates are no longer considered outstanding. The City reduced its total debt service by approximately $1,809,000 over the life of the new debt and obtained an economic gain (difference between the present values of the debt service payments on the old and new debt) of $906,810. The aggregate amount of defeased debt outstanding at June 30, 1999 was $38,645,000. 47 (5) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 LONG TERM DEBT (continued) Co) Cupertino Public Facilities Corporation Certificates of Participation (continued) The related debt service requirements at June 30, 1999, follows: Capital Improvement Refundmt A Fiscal Year Ending June 30 Principal Interest Total 2000 $ $ $ 2001 325,000 483,968 808,968 2002 345,000 466,094 811,094 2003 370,000 446,688 816,688 2004 390,000 425,412 815,412 Ther~aiter 7,000,000 2,896,563 9,896,563 Total $8,745,000 $5,219,389 $13,964,389 The effective interest on these certificates averages 5.69%. Wilson/Memorial .Refunding B Fiscal Year Ending June 30 ~al Interest Total 2000 $~ $ ~ $ 1,32~ 2001 750,000 573,008 1,323,008 2002 790,000 530,820 1,320,820 2003 840,000 485,396 1,325,396 2004 890,000 436,046 1,326,046 Thereafter 6~145,000 1,342,644 7,487,644 Total $10,125,000 $3,980,682 $14~105~682 The effective intere, nt rate on these certificates averages 5.98%. ~ Interest Total riseal year2~]~lin~ June 30 $ 1,130~00 $ 1,~ $ 2,803'-,',',',',',',','~ 2001 1,185,000 1,615,705 2,800,705 2002 1,240,000 1,553,713 2,793,713 2003 1,305,000 1,487,682 2,792,682 2004 1,380,000 1,416,338 2,796,338 Thereafi~- 24~050~000 9~209~397 33~259~397 Total $30~290~000 $!6,956~301 $47,246,301 The effective interest rate on these ceffdficates averages 5.62%. 48 (5) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 LONG-TERM DEBT (continued) Co) 1915 Act Bonds The City acts as agent for the property owner~ of parcels upon which assessments were made for local improvements. The City collects the assessments and forwards the collections to bond holders. The City is not directly liable for the repayment of special assessment district bonds as such bonds and interest payable are secured by fixed lien assessments on real property; however, the City has determined that it is probable that the government would assume responsibility for all or part of the debt in the evcnt of default. The amount of matured bond principal at June 30, 1999 was $730,000 as detailed below: Vallco 7~-3 l~'i~'al'n/~'Endinl~ June 30 ~ Interest Total 20oo $12 2001 105,000 15,330 120,330 2002 105,000 7,665 112,665 Total $310,000 The effective ~ntcr~ rate on this issue is 7.30%. $45,625 $355~625 Vall¢o 74-4 ~Endinlg June 30 Principal Interest Total 2OO0 2001 70~000 5~110 75~110 Total $135,000 $14~965 $149~965 The effective interest rate on this issue is 7.30%. 49 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (5) LONG-TERM DEBT (continued) Co) 1915 Act Bonds (continued) Traffic Impact Fiscal Year Ending June 30 Principal Interest Total 2000 $ 15,000 $ 20,656 $ 35,656 2001 15,000 19,569 34,569 2002 20,000 18,300 38,300 2003 20,000 16,850 36,850 2004 20,000 15,375 35,375 Thereafter 195,000 55,687 250,687 Total $285,000 $146,437 $431,437 (6) The effective interest rate on this issue ranges f~om 7.25 to 7.5%. UNRESERVED, DESIGNATED FUND BALANCES The unreserved-designated fund balances include amounts which have been internally designated to be set aside and are not considered to be available for immediate appropriation. The components of the unreserved-designated fund balance for the General Fund at June 30 are as follows: Debt service Self-insurance Capital improvements Civic center building SU'eet improvements Open space-recreation Mark-m-market Total designated fund balances 1999 $ 9,565,063 1,000,000 1,035,000 2,361,495 600,000 301,000 (S6254) $14,806~304 50 (7) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 SEGMENT INFORMATION FOR ENTERPRISE FUNDS The City operates five enterprise funds which provide solid waste disposal services, golf course and picnic area, a sports facility, recreation center and a senior center. Significant financial data as of and for the year ended June 30, 1999, for eacli of these funds is as follows: Resource Blackber~ Cupemno Recr~fion Senior l~covm-/ Farm Spmu Cem~r Proipm{ C~ter Tom] Operating revenues $2,.315,586 $1,454,620 $859,.357 $1,409,606 $336,625 S6,375,794 Depreciation 731 74,075 16,375 -- -- 91,181 Operating income (toss) 452,875 233,401 (21,662) 201,552 (18,546) 847,590 Ope~ting transfers in (out) -- (150,000) 365,000 (250,000) -- (35,000) Net income 0o~s) .542.514 112,838 368,062 (34,799) (2.377) 986,238 Properly & equipment additions 216,123 -- -- -- 216,12~ Net working capita] 1,963,287 (49,818) 642,660 322,041 286,990 3,165,160 Tom] assets 2, I I 1,094 1224,416 709,892 360,327 302,566 4,708~85 Total equity 1,96~,92~ 869.881 654.399 322,041 286,990 4,099,436 (8) COIVlMITML:q~S AND CONTINGEN~ The City participates in a number of federal and state grant programs subject to financial and compliance audits by the gx~mtox~ or their representatives. Audits of certain grant program% including those for the year ended June 30, 1999, have yet to be conducted. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. Management believes that such disallowances, if any, would not have a mnterial effect on the financial stnt,~ments. _ 51 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (8) COMM]TIVIENTS AND CONTINGENCIES (continu~) During the year, the City successfully remediated an old waste disposal site on private property within Cupertino. The City liability was due to the fact that it believed it disposed of a portion of the waste at the site. The costs for cleanup was approximately $1.8 million dollars. The City has an agreement, expiring in 2019, to lease a building to the County of Santa Clara for the purpose of providing library service to the City's residents. The lease requires a minimum annual payment of $120,000 adjusted annually for Cupertino's portion of book circulation and increase of assessed valuation. This is an operating lease with a renewable option. The future minimum ~ntals from such leases are as follows: Fiscal year ending June 30 Amount 2000 $ 120,000 2001 120,000 2002 120,000 2003 120,000 Thereafter 1,680~000 Total future minimtml r~ntals $2~160~000 The City also has various non-cancelable operating leases for copying equipment expiring over the next two year~. Lease expense for the fiscal year ending June 30, 1999 was $11,112. The future mlnim~rm recital payments fxom such leases are as follows: Fiscal year ending June 30 Amount 2000 $11,289 2001 ~139 Total future mlnimm l'~ntal~ $16~428 52 (9) CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT The City is self-insured for the first $100,000 of workers' compensation claims per occurrence. The City provides for excess workers' compensation insurance through an outside administrator up to $3,000,000. During the fiscal year 1997/98, the City had a two year analysis performed of its workers' compensation program by an independent actuary. This resulted in an increase in the City's reserve for unpaid claims of approximately $10,000. There were no significant reductions in insurance coverage from the prior year nor did settlements exceed insurance coverage for the past four fiscal years..In addition, the City is self-insured for general and automobile liability claims for the first $100,000 per occurrence. Excess coverage is provided by the outside administrator up to $5,000,000. Claims liability is based upon the administrator's estimate of ultimate loss payout. Changes in the balances of claim liabilities during the past two fiscal years are as follows: Workera ' Compensation Claims liability, June 30, 1997 Incurred claims Claim payments $418,194 102,207 (196,426) Claims liability, June 30, 1998 Incurred claims Claim payments/credits 323,975 147,231 (136~436) Claims liability, June 30, 1999 $334~770 _ 53 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (10) OTHER POST RETIREMENT BENEFrrs Permanent employees who retire under the City's retirement plan (PEP, S) and who have five years of service are, pursuant to their respective collective bargaining agreements, eligible to have their medical insurance premiums paid by the City. Retirees receive the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefit plan up to the maximum received by active employees in their respective bargaining unit. The cost of retiree medical insurance premiums are recognized as an expenditure when benefits are paid. There were 55 retirees participating in the plan as of June 30, 1999. Retiree medical insurance premium expenses for the past five fiscal years ended June 30, are as follows: 1995 124,500 1996 152,882 1997 147,791 1998 162,021 1999 183,330 (11) DEFERRED COMPENSATION PLAN Due to the passage of the Small Business Job Protection Act (Act) of 1996, and the issuance of Governmental Accounting Standards Board Statement No. 32 "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans," governmental entities who have established deferred compensation plans under Internal Revenue Code Section 457 are required to establish mints to hold plan assets for the exclusive benefit of plan participants and their beneficiaries. This Act supercedes previous regulations, which required that plan assets mnain the property of the City until paid or made available to thc participants, subject only to the City's general creditors. In compliance with the new regulations, the City established separate trusts to hold plan assets. The value of assets held in trust under Section 457 deferred compensation plans is approximately $8,707,262 as of June 30, 1999. 54 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS June 30, 1999 (12) DEFINED BENEFIT PENSION PLAN (a) Plan Description The City of Cupertino's defined benefit pension plan, provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The plan is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple- employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by State ~tutes within the Public Employees' Retirement L~w. The City selects optional benefit provisions fi'om the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from the CalPERS Executive Office, 400 P Sub-et, Sacramento, CA 95814. (b) Funding Policy Active plan members are required to conUibute 7% of their annual covered salary, which is paid by the City on behalf of the employee. The City is required to contribute the actuarially det~.,,ined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CaIPERS Board of Administration. The required employer contribution rate for fiscal year 1998/99 was 6.446%. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS. _ 55 CITY OF CUPERTINO, CALIFORNIA NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS Juue 30, 1999 (12) DEF]]xlED BENEFIT PENSION PLAN (continued) c) Annual Pension Cost: For fiscal year 1998/99, the City's annual pension cost and the City's actual conlxibution was $972,043. The required conlribufion for fiscal year 1998/99 was determined as pan of the June 30, 1997 actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included a) 8.25% investment rate of return (net of adrainlstrative expenses); b) projected salary increases that vary by duration of service ranging from 3.75% to 14.20% for miscellaneous members and c) no cost- of-living adjustment. Both (a) and -Co) include an inflation component of 3.5%. The actuarial value of the City of Cupertino's assets was detemlined using a technique that smoothes the effect of short-tvtm volatility in the market value of investments over a two to five year period depending on the size of investment gains and/or losses. The City of Cupertino's overfunded pension benefit obligation is being amortized as a level percentage of projected payroll on a elused basis. The remaining amortization period at June 30, 1999 was 30 years. Three year trend information for City of Cupertino: Annual Percentage Net Fiscal Year Pension of APC Pension Ending Cost (APC) Conlxibuted Obligation 6/30/97 916,538 100.0% 0 6/30/98 990,452 100.0% 0 6/30/99 972,043 100.0% 0 (13) SUBSEQUENT EVLrNTS Subsequent to June 30, 1999, the City was informed by Santa Clara County that it had made errors in the calculation of the allocation of property taxes paid to the City in the fiscal years ended June 30, 1996 through 1999. Although the County has not requested a refund of $695,466 for these prior years, it has informed the City that future year property tax allocations will be reduced based on corrections to the allocation. The reduction amounts to epproximmely $200,000 annually. , 56 CITY OF CUPERTINO, CALIFORNIA REQUIRED SUPPLEMENTARY INFORMATION June 30, 1999 (I) Funded Status of Plan (in thousands) Valuation UAAL Date (Most Actuarial Actuarial Unfunded/ Annual As a % of recent data Value of Accrued (Overfunded) Funded Covered Covered available) Assets Liability Liability Ratio Payroll Payroll 6/30/95 $15,649 $14,157 $(1,492) 110.5% $5,515 (27.1%) 6/30/96 17,603 16,276 (1,327) 108.2% 5,869 (22.6%) 6/30/97 20,640 16,070 (4,570) 128.4% 6,113 (74.7%) (2) Year 2000 Disclosure The year 2000 issue is the result of shortcomings in many electronic, data processing systems and other electronic equipment that may adversely affect the government's operations. City of Cupertino has completed an inventory of computer systems and other eleclronic equipment that may be affected by the year 2000 issue and that are necessary to conducting City operations. Based on this inventory, the City is in the remediation stage. New systems are c~tly being in2~'adled (hardware and sof~are believed to be year 2000 compliant) for the financial reporting system, Parks and Recreation system and the traffic circulation system. Testing and validation of the systems will need to be completed after the hardware and software are installed. Because of the unprecedented nature of the Year 2000 issue, its effects and the success of related remedial/on efforts will not be fully determinnble until the year 2000 and therea/ter. Management cannot assure that the City is or will be Year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City does business will be year 2000 ready. Contracts totalling $73,457 are still outstanding as of June 30, 1999. 57 GENERAL FUND The General fand is the general operating fund of the City. It is used to account for all financial resources except those which are required to be accounted for in another fund. 58 CITY OF CI. rPER'rENo, CALIFORNIA General Fund Comparative Balance Sheets June 30, 1999 and 1998 C~sh and investments Receivables: Other assets Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Acm'ued sick leave and vacation Deposits Deferred revenue Total liabilities Fund bnln-ces: -- Reserved for encm~hrances Reserved for loans receivable Reserved for affordable housing -- Reserved for public access television Unreserved: Designated -- Undesignated To~l fired b*l~r',es Toufl linbililies and fund bahmces 1999 26,754,169 1,350,119 1,121,551 42,167 29,268,006 1998 $ 36,443,983 1,483,198 1,135,256 33,487 $ 39,095,924 674,003 $ 772,332 1,601,747 1,241,820 990,268 624,899 39,595 52,367 3,305,613 190.959 1,121,551 1,763,410 1,312,016 14,806,304 6,768,153 25,962,393 29,268,006 2,691,418 126,386 1,135,256 1,648,916 1,408,581 14,944,812 17,140,555 36,404,506 $ 39,095,924 59 CITY OF CUPERTINO, CALIFORNIA General Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 1999 and 1998 Taxes Use of money and property Intergovernmental Charges for services Fmcs and forfeitures Other revenue 1999 $ 18,067,176 2,417,202 2,763,282 2,256,443 503223 145,854 Total revenues 26,153,180 Expenditures: Current: Actminin~xafion I_~w enforcement Public Information Aflmininlrative services Rcerealion services Comrmmity development Public works 1,133308 4,892,704 631,035 1,993234 1,363310 1,871,242 7,285,440 Total expenditures 19,170,473 Excess of revenues over (under) expenditures 6,982,707 O~her financing sources (uses): Operating wa~sf~ra in Operating transfers out 1,11~350 (18,541,170) Total other fin*~ci~ ~ources (us~) (17,424,820) Excess (defiency) of revenues over (under) exgenditwes and other financing soumes (uses) (10,442,113) 36,404,506 $ 25,962,393 Fund bnlnnee~ Residual equity Iransfers Fund balences, end of year 1998 $ 18,138,157 2,042,599 2,549,186 2,039,479 241,293 968,733 25,979,447 1,028,272 4,467,740 479,859 1,964,576 1,160,574 1,671,634 6,770,751 17,543,406 8,436,041 2,400,500 (5,461,100) (3,060,600) 5,375,441 21,073,728 9,955,337 $ 36,404,506 60 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that axe legally restricted to expenditures for specified purposes. Storm Drain - Accounts for the construction and maintenance of storm drain facilities including drainage and sanitary sewer facilities. Park Dedication - Accounts for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City's General Plan. Revenues of this fund are restricted for the acquisition, improvement, expansion and implementation of the City's parks and recreation facilities. Environmental Management - Accounts for all activities related to operating the non- profit source pollution program. Gas Tax - Accounts for the City's gas tax apportionment revenues and expenditures related to the maintenance and construction of city streets. All revenue in this fund is reslricted exclusively for street and mad purposes including related engineering and administrative expenses. Housing Development - Accounts for the Federal Housing and Community Development Grant Program actvifies administered through the county. Monies in this fund are governed by the program rules. Leadership Cupertino - Accounts for revenue and expenditures for the purpose of supporting a leadership trainirlg course in the community. 61 Assets Cash and invesmaents Accounts receivable Loans receivable Totalassets CITY OF CUPERTINO, CALIFORNIA Special Revenue Funds Combining Balance Sheet June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Storm Park Environmental Drain Dedication Management Gas $ 1,287,842$ 640,334 $ 310,220 $ 1,097,912 917 440 1,801,295 $ 1,288,759 $ 640,334 $ 310,660 $ 2,899,207 Liabilities and fund balances Liabilities: Accounts payable and accruals Accrued sick leave and vacation Deferred revenue Total liabihties Fund balances: Reserved for encumbrances Reserved for loans receivable Uareserved: Designated Undesignated Total fund balances Total liabilities and fund balances $ 1,017 $ $ 8,238 $ 113,056 28,424 9,724 1,017 36,662 122,780 709 2,094,491 1,287,742 640,334 273,289 681,936 1,287,742 640,334 273,998 2,776,427 $ 1,288,759 $ 640,334 $ 310,660 $ 2,899,207 Housing Leadership Totals Development Cupertino 1999 1998 $ 320,754 $ 7,700$ 3,664,762 $ 4,633,980 25,077 1,827,729 20,199 1,697,572 1,697,572 1,705,266 $ 2,043,403 $ 7,700 $ 7,190,063 $ 6,359,445 $ 49,988 $ 3 $ 172,302 $ 35,204 1,300 39,448 21,644 573,101 573,101 576,299 624,389 3 784,851 633,147 2,095,200 318,254 1,124,471 1,124,471 1,128,967 294,543 7,697 3,185,541 4,279,077 1,419,014 7,697 6,405,212 5,726~98 $ 2,043,403 $ 7,700 $ 7,190,063 $ 6,359,445 63 CITY OF CUPERTINO, CALIFORNIA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 1999 C*Vith Comparative Totals for fiscal year ended June 30, 1998) . Storm Park Drain Dedication Environmental Management Revenues: Taxes Use of money and property Intergovernmental Charges for services Other revenue $ 198,079 $ 330,750 $ 74,542 44,860 11,826 321,572 Total revenues 272,621 375,610 333,398 412,751 465,957 19,978 465,957 19,978 412,751 (193,336) 355,632 (79,353) (375,000) (375,000) (193,336) (19,368) (79,353) 1,481,078 659,702 353,351 Expenditures: Administrative Services Community development Public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operatuag transfers out Net other financing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other fmancing sources (uses) Fund balances, beginning of year Fund balances, end of year $ 1,287,742 $ 640,334 $ 273,998 Gas Housing Leadership Tax Development Cupertino $ $ $ $ 80,711 172,457 2,693,672 62,794 625 2,774,383 235,876 Tomls 1999 1998 528,829 $ 2,066,535 384,396 419,701 2,756,466 943,734 321,572 326,897 17,454 18,079 148,626 17A54 4,009,342 3,905,493 15,742 15,742 230,700 149,231 1,881,946 2,202,619 894,040 155,095 15,742 3,022,428 2,506,945 1,712 986,914 1,398,548 1,469,195 408,105 230,700 1,877,300 230,700 897,083 5,176 62,000 5,000 67,000 35,000 (375,000) (2,197,323) 62,000 5,000 (308,000) (2,162,323) 959,083 5,176 6,712 678,914 (763,775) 1,817,344 1~13,838 985 5,726,298 6A90,073 2,776,427 $ 1,419,014 $ 7,697 $ 6,405,212 $ 5,726,298 65 Assets Cash and investmants Accounts receivable Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OFCUPERTINO, CALIFORNIA Storm Drain Special Revenue Fund Comparative Balance Sheets June30,1999and1998 1999 $ 1,287,842 917 1998 $ 1,492,481 $ 1,288,759 $ 1,492,481 $ 1,017 $ 11,403 1,287,742 1,287,742 50,700 1,430,378 1,481,078 $ 1,288,759 $ 1,492,481 66 CITY OF CUPERTINO, CALIFORNIA Storm Drain Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 Amended Budget Actual Taxes Use of money and property Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year variance Favorable (Unfavorable) 1998 Actual $ 200,000 $ 198,079 $ (1,921)$ 85,273 77,000 74,542 (2,458) 137,004 277,000 272,621 (4,379) 222,277 1,625,700 465,957 1,159,743 155,095 1,625,700 465,957 1,159,743 155,095 (1,348,700) (193,336) 1,155,364 67,182 1,481,078 1,481,078 1,413,896 $ 132,378 $ 1,287,742 $ 1,155,364 $ 1,481,078 67 Assets Cash and investments Fund balances: Unreserved: Undesignated Total fund balances CITY OF CUPERTINO, CALIFORNIA Park Dedication Special Revenue Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 640,334 $ 659,702 $ 640,334 $ 659,702 $ 640,334 $ 659,702 68 Revenues: Taxes Use of money and property Total revenues Expenditures: Capital outlay Total expenditures Excess of revenues over expenditures Other fnm~cing sources (uses): Operating transfers out Excess (deficiency) of revenues over (under) expenditures and o~er t~ncmg sources (uses) Fund balances, beginning of year Fund balances, end of year CITY OF CUPERTINO, C.~!.FFORNIA Park Dedication Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 1998 variance Amended Favorable Budget Actual (Unfavorable) Actual 350,000 $ 330,750 $ (19,250) $ 2,066,535 45,000 44,860 (140) 75,080 395,000 375,610 (19,390) 2,141,615 120,000 19,978 100,022 120,000 19,978 100,022 275,000 355,632 80,632 2,141,615 (375,000) (375,000) (2,197,323) (100,000) (19,368) 80,632 (55,708) 659,702 659,702 715,410 559,702 $ 640,334 $ 80,632 $ 659,702 -- 69 CITY OF CUPERTINO, CALIFORNIA Environmental Management Special Revenue Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Cash and mvesm~ents Accounts receivable Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Accrued sick leave and vacation Total liabilities Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances 1999 1998 $ 310,220 $ 377,865 440 880 $ 310,660 $ 378,745 $ 8,238 $ 3,915 28,424 21,479 36,662 709 273,289 273,998 25,394 353,351 353,351 $ 310,660 $ 378,745 70 Use of money and property Charges for services Total revenues Expenditures: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year CITY OF CUPERTINO, CALIFORNIA Environmental Management Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparafive Totals for fiscal year ended June 30, 1998) 1999 1998 Amended Favorable Budget Actual (Unfavorable) Acmal $ 8,000 $ 11,826 $ 3,826 $ 14,060 361,000 321,572 (39,428) 326,897 369,000 333,398 (35,602) 340,957 425,510 412,751 12,759 342,697 425,510 412,751 12,759 342,697 (56,510) (79,353) (22,843) (1,740) 353,351 353,351 355,091 $ 296,841 $ 273,998 $ (22,843) $ 353,351 - 71 Assets Cash and mvestmants Accounts receivable Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Accrued sick leave and vacation Total liabilities Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Gas Tax Special Revenue Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 1,097,912 $ 1,822,883 1,801,295 679 $ 2,899,207 $ 1,823,562 $ 113,056 9,724 122,780 2,094,491 681,936 2,776,427 $ 6,218 6,218 267,554 1,549,790 1,817,344 $ 2,899,207 $ 1,823,562 Use of money and property Intergovernmental Total revenues Expenditures: Public works Capital outlay Total expenditures Excess (deficency) of revenue over (under) expenditures Other financing sources (uses): Operating Wansfers in Total other fln~ncing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year CITY OF CUPERTINO, CALIFORNIA Gas Tax Special Revenue Fund Stalement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 Variance Amended Favorable Budget Actual (Unfavorable) 1998 Actual $ 50,000 $ 80,711 $ 30,711 $ 109,749 2,625,000 2,693,672 68,672 890,150 2,675,000 2,774,383 99,383 999,899 2,103,753 1;469,195 634,558 1,859,922 1,123,672 408,105 715,567 3,227,425 1,877,300 1,350,125 1,859,922 (552,425) 897,083 1,449,508 (860,023) 62,000 62,000 35,000 62,000 62,000 35,000 (490,425) 959,083 1,449,508 (825,023) 1,817,344 1,817,344 2,642,367 $ 1,326,919 $ 2,776,427 $ 1,449,508 $ 1,817,344 73 CITY OF CUPERTINO, CALIFORNIA Housing Development Special Revenue Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Cash and investments Accounts receivable Loans receivable Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Accrued sick leave and vacation Deferred revenue Total liabilities Fund balances: Reserved for loans receivable Unreserved: Undesignated Total fund balances Total liabilities and fund balances 1999 1998 $ 320,754 $ 280,065 25,077 18,639 1,697,572 1,705,266 $ 2,043,403 $ 2,003,970 $ 49,988 $ 13,668 1,300 165 573,101 576,299 624,389 1,124,471 294,543 1,419,014 590,132 1,128,967 284,871 1,413,838 $ 2,043,403 $ 2,003,970 CITY OF CUPERTI~IO, CALIleORNIA Housing Development Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 1998 Variance Amended Favorable Budget Actual (Unfavorable) Actual Use of money and prope~'y Intergovemmental Otherrevenue $ 174,000 $ 172,457 $ (1,543) $ 135,539 48,000 62,794 14,794 53,584 625 625 532 Total revenues 222,000 235,876 13,876 189,655 Expendimres: Coramunitydevelopmeat 315,416 230,700 84,716 139,126 Total expenditures 315,416 230,700 84,716 139,126 (93,416) 5,176 98,592 50,529 (93,416) 5,176 98,592 50,529 1,413,838 1A13,838 1,363,309 Excess (deficency) of revenues over (under) expenditures Excess (deficiency) of revenues over (under) expenditures and other On.~cing sources (uses) Fund balances, beginning of year Fund balances, end of year $ 1,320,422 $ 1,419,014 $ 98,592 $ 1,413,838 75 Assets Cash and invcsUnents Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Unreserved: Undesignated Total fund balances CITY OF CUPERTINO, CALIFORNIA Leadership Cupertino Special Revenue Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 7,700 $ 985 7,700 $ 985 3 $ 7,697 985 7,700 $ 985 76 CITY OF CUPERTI~IO, CALIFORNIA Leadership Cupertino Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 1998 Amended Favorable Budget Actual (Unfavorable) Actual Revenues~ Other revenue $ 21,000 $ 17,454 $ (3,546) $ 11,090 Total revenues 21,000 17,454 (3,546) 11,090 20,900 15,742 5,158 10,105 20,900 15,742 5,158 10,105 100 1,712 1,612 985 Expenditures: Admlnislrative Services Community Development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other finaneillg sources (uses): Operating transfers m 5,000 5,000 Excess (deficiency) of revenues over (under) expenditures and other ~-.-cing sources (uses) 5,100 6,712 1,612 985 Fund balances, beginning of year 985 985 Fund balances, end of year $ 6,085 $ 7,697 $ 1,612 $ 985 77 NOTES 78 DEB T SER VICE FUNDS The Debt Service Funds are used to account for the accumulation of resources for and the payment of general long-term debt, principal, interest and related costs. Public Facilities Corporation - Accounts for the payments of principal and interest on certificates of participation issued to provide for the advance, refunding of the City Hall/Library, Wilson Park and Memorial Park certificates of participation. 1915 Act Bonds - Accounts for the assessments received and the payment of principal and interest under the Improvement Bond Act of 1915 including Vallco Assessment Districts and Traffic Impact. _ 79 Assets Cash and investments Assessments receivable Total assets CITY OF CUPERTINO, CALIFORNIA Debt Service Funds Combining Balance Sheet June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Public Traffic Facilities Corp. Impact $ 4,997,087 $ Vallco AD 74-3 75,036 $ 212,502 270,000 225,000 $ 4,997,087 $ 345,036 $ 437,502 Liabilities and fund balances Liabilities: Accounts payable and accruals Deferred revenue Total liabilities Fund balances: Reserved for debt service Total liabilities and fund balances $ $ $ 160 270,000 225,000 270,000 225,160 4,997,087 75,036 212,342 4,997,087 $ 345,036 $ 437,502 80 Vallco Totals AD 74-4 1999 1998 $ 73,237 $ 5,357,862 $ 5,349,356 70,000 565,000 750,000 $ 143,237 $ 5,922,862 $ 6,099,356 160 $ 320 $ 70,000 565,000 750,000 70,160 565,320 750,000 73,077 5,357,542 5,349,356 $ 143,237 $ 5,922,862 $ 6,099,356 _ 81 CITY OF CUPERTINO, CALIFORNIA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Taxes Use of money and property Public Traffic Vallco Facilities Corp. Impact AD 74-3 $ $ 36,200 $ 129,090 312,080 917 Total revenues 312,080 37,117 129,090 Expenditures: Principal Interest 2,045,000 15,000 95,000 2,902,333 22,802 26,408 Total expenditures 4,947,333 37,802 121,408 (4,635,253) (685) 7,682 4,633,000 (2,253) (685) 7,682 4,999,340 75,721 204,660 Excess (deficiency) of revenues over (under) expenditures Other financing sources: Operating transfers in Excess (deficiency) of revenues and other f'mancing sources over (under) expenditures Fund balances, beginning of year Residual equity transfer Fund balances, end of year $ 4,997,087 $ 75,036 $ 212,342 82 Vallco Totals AD 74-4 1999 1998 75,796 $ 241,086 $ 242,911 312,997 314,005 75,796 554,083 556,916 60,000 2,215,000 2,110,000 12,354 2,963,897 3,083,242 72,354 5,178,897 5,193,242 3,442 (4,624,814) (4,636,326) 4,633,000 4,653,000 3,442 8,186 16,674 69,635 5,349,356 5,336,454 (3,772) 73,077 $ 5,357,542 $ 5,349,356 83 CITY OF CUPERTINO, CALIFORNIA Public Facilities Corporation Debt Service Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Cash and investments Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for debt service Total liabilities and fund balances 1999 1998 4,997,087 $ 4,999,340 4,997,087 4,999,340 $ 4,997,087 $ 4,999,340 Revenues~ Use of money and property Total revenues Expenditures: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers m Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year CITY OF CUPERTINO, CALIFORNIA Public Facilities Corporation Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 Variance Amended Favorable Budget Actual (Unfavorable) 1998 Acmal $ 325,000 $ 312,080 $ (12,920) $ 313,068 325,000 312,080 (12,920) 313,068 2,045,000 2,045,000 1,955,000 2,921,200 2,902,333 18,867 3,009,957 4,966,200 4,947,333 18,867 4,964,957 (4,641,200) (4,635,253) 5,947 (4,651,889) 4,633,000 4,633,000 4,653,000 (8,200) (2,253) 5,947 1,111 4,999,340 4,999,340 4,998,229 $ 4,991,140 $ 4,997,087 $ 5,947 $ 4,999,340 - 85 Cash and investments Assessments receivable Total assets Liabilities and fund balances Liabilities: Deferred revenue Fund balances: Reserved for debt service Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Traffic Impact Debt Service Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 75,036 $ 75,721 270,000 285,000 $ 345,036 $ 360,721 $ 270,000 $ 285,000 75,036 75,721 $ 345,036 $ 360,721 86 Taxes Use of money and property Total revenues Expenditures: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year CITY OF CUPERTI~'O, CALIFOR-NIA Traffic Impact Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 Amended Budget Actual Variance Favorable (Unfavorable) 1998 Actual $ 37,000 $ 36,200 $ (800) $ 37,287 917 917 937 37,000 37,117 117 38,224 15,000 15,000 15,000 22,900 22,802 98 23,822 37,900 37,802 98 38,822 (900) (685) 215 (598) 75,721 75,721 76,319 $ 74,821 $ 75,036 $ 215 $ 75,721 _ 87 CITY OF CUPERTINO, CALIFORNIA Vallco 74-3 Debt Service Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Cash and invesUnents Assessments receivable Total assets Liabilities and fund balances Liabilities: Accounts payable Deferred revenue Total liabilities Fund balances: Reserved for debt service Total liabilities and fund balances 1999 1998 212,502 $ 204,660 225,000 330,000 $ 437,502 $ 534,660 160 225,000 $ 330,000 225,160 330,000 212,342 204,660 437,502 $ 534,660 88 Revenues: Taxes Total revenues Expenditures: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year CITY OF CUPERTINO, CALIFORNIA Valico AD 74-3 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 1999 1998 Variance Amended Favorable Budget Actual (Unfavorable) Acmal $ 131,000 $ 129,090 $ (1,910) $ 131,390 131,000 129,090 (1,910) 131,390 95,000 95,000 85,000 29,850 26,408 3,442 32,944 124,850 121,408 3,442 117,944 6,150 7,682 1,532 13,446 204,660 204,660 191,214 210,810 $ 212,342 $ 1,532 $ 204,660 89 CITY OF CUPERTINO, CALIFORNIA Vallco 74-4 Debt Service Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Cash and investments Assessments receivable Total assets 1999 1998 73,237 $ 69,635 70,000 135,000 143,237 $ 204,635 160 70,000 $ 135,000 70,160 135,000 73,077 69,635 Liabilities and fund balances Liabilities: Accounts payable Deferred revenue Total liabilities Fund balances: Reserved for debt service Total liabilities and fund balances $ 143,237 $ 204,635 90 CITY OF CUPERTINO, CALIFORNIA Vallco AD 74-4 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Revenues: Taxes Total revenues Expenditures: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances, beginning of year Fund balances, end of year 1999 1998 Amended Favorable Budget Actual (Unfavorable) Actual 77,000 $ 75,796 $ (1,204) $ 74,234 77,000 75,796 (1,204) 74,234 60,000 60,000 55,000 14,500 12,354 2,146 16,519 74,500 72,354 2,146 71,519 2,500 3,442 942 2,715 69,635 69,635 66,920 72,135 $ 73,077 $ 942 $ 69,635 - 91 NOTES 92 CAPITAL PR OJECT FUNDS The Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). Capital Improvement Projects - Accounts for activities related to the acquisition or construction of major capital facilities. Stevens Creek Boulevard - Accounts for street impmvemetus and expenditures along Stevens Creek Boulevard. Creekside Park - Accounts for activities related to the acquisition and construction of Creekside Park including a youth sports complex, community center and picnic facilities. Library Remodel - Accounts for costs associated with consultant's needs assessment and feasibility study to expand the current library. Senior Center Expansion - Accounts for activities related to design and construction of additional space for the Senior Center. Four Seasons Park - Accounts for activities related to the construction of the Four Seasons Park located at the southeast comer of DeAnza Boulevard and Stevens Creek Boulevard. 93 CITY OF CUPERTINO, CALIFORNIA Capital Projects Funds Combining Balance Sheet June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Assets Cash andinvestxnents Accounts receivable Total assets Capital Stevens Improvement Creek Projects Boulevard $ 265,290 $ 64,248 $ 139,226 $ 404,516 $ 64,248 $ Creekside Park 235,031 235,031 Liabilities and fund balances Liabilities: Accounts payable and accruals Total liabihties $ 246,648 $ 16 $ 1,154 246,648 16 1,154 Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fundbalances Total liabihties and fund balances 484,628 63,477 (326,760) 755 233,877 157,868 64,232 233,877 $ 404,516 $ 64,248 $ 235,031 94 Library Senior Center Four Seasons Total Remodel Expansion Park 1999 1998 122,323 $ 4,213,459 $ 339,695 $ 5,240,046'$ 1,100,603 139,226 10,206 $ 122,323 $ 4,213,459 $ 339,695 $ 5,379,272 $ 1,110,809 1,468 $ 22,258 $ $ 271,544 $ 2,014,356 1,468 22,258 271,544 2,014,356 7,400 335,219 26,519 917,243 328,983 113,455 3,855,982 313,176 4,190,485 (1,232,530) 120,855 4,191,201 339,695 5,107,728 (903,547) 122,323 $ 4,213,459 $ 339,695 $ 5,379,272 $ 1,110,809 95 CITY OF CUPERTINO, CALIFO~ Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Capital Stevens Improvement Creek Creekside Projects Boulevard Park Use of money and property Intergovernmental Other $ $ $ 131,206 131,206 6,524,838 369,722 10,942 (6,393,632) (369,722) (10,942) 8,200,170 200,000 (266,350) 7,933,820 200,000 1,540,188 (169,722) (10,942) (1,382,320) 233,954 244,819 Total revenues Expenditures: Capital outlay Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating txansfers in Operating transfers out Net other financing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year 157,868 $ 64,232 $ 233,877 96 Library Remodel Senior Center Expansion Totals 1999 1998 $ 68,333 68,333 $ $ 136 131,206 109,676 243,000 311,333 29,095 243,000 442,539 138,907 47,478 208,799 3,305 7,165,084 4,257,196 20,855 (208,799) 239,695 (6,722,545) (4,118,289) 100,000 100,000 120,855 4AO0,O00 4,400,000 4,191,201 100,000 100,000 339,695 13,000,170 422,323 (266,350) (25,500) 12,733,820 396,823 6,011,275 (903,547) 3,721,466) 2,817,919 120,855 $ 4,191,201 $ 339,695 $ 5,107,728 $ (903,547) 97 Assets Cash and investments Accounts receivable Total assets Liabilities and fund balances Liabilities: Accounts payable and accruals Total liabilities Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Capital Improvement Projects Capital Projects Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 $ 265,290 139,226 1998 621,656 10,206 $ 404,516 $ 631,862 $ 246,648 $ 2,014,182 246,648 484,628 (326,760) 157,868 2,014,182 321,973 (1,704,293) (1,382,320) $ 404,516 $ 631,862 98 CITY OF CUPERTINO, CALIFORNIA Capital Improvement Projects Capital Projects Fund Comparitive Statements of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 1999 and 1998 Use of money and property Intergovernmental Other Total revenues Expenditures: Capital outlay Excess (deficiency) of revenues over (under) expenditures Operating transfers m Operating transfers out Net other flnan¢illg sources (itses) Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) Fund balances, beginning of year Fund balances, end of year 1999 $ 131,206 131,206 6,524,838 (6,393,632) 8,200,170 (266,350) 7,933,820 1,540,188 (1,382,320) $ 157,868 $ 1998 136 9,676 29,095 38,907 2,144,343 (2,105,436) 175,000 (25,5oo) 149,5oo (1,955,936) 573,616 (1,382,320) 99 Assets Cash and investments Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Stevens Creek Boulevard Capital Projects Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 64,248 $ 234,113 $ 16 $ 159 63,477 755 1,810 232,144 64,232 233,954 64,248 $ 234,113 100 CITY OF CUPERTINO, CALIFORNIA Stevens Creek Boulevard Improvements Comparative Statements of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 1999 and 1998 Expenditures: Capital outlay Other financing sources: Operating Iransfers in Excess (deficiency) of other financing sources over (under) expendilures Fund balances, beginnin~ of year Fund balances, end of year 1999 $ 369,722 $ 200,000 (169,722) 233,954 $ 64,232 $ 1998 74,680 150,000 75,320 158,634 233,954 101 ~ssets Cash and investments Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Creekside Park Capital Projects Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 235,031 $ 244,834 $ 1,154 $ 15 5,200 233,877 239,619 233,877 244,819 $ 235,031 $ 244,834 102 CITY OF CUPERTINO, CALIFOKNIA CreeP, side Park Capital Project Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 1999 and 1998 Intergovenmental 1999 10,942 (10,942) Expenditures: Capital outlay Excess (defiency)of revenues over (under) expenditures Operating transfers in Excess (deficiency) of other flna~¢ing sources over (under) expenditures Fund balances, beginning of year Fund balances, end of year 1998 100,000 2,038,173 (1,938,173) 97,323 (10,942) (1,840,850) 244,819 2,085,669 233,877 $ 244,819 103 Cash and investments Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for encumbrances U~reserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Library Remodel Capital Projects Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 $ 122,323 $ $ 1,468 $ 7,400 113,455 120,855 $ 122,323 $ 1998 104 Other CITY OF CUPERTINO, CALIFORNIA Library Remodel Capital Projects Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances June 30, 1999 and 1998 1999 1998 $ 68,333 $ Expenditures: Capital outlay Excess (defiency)of revenues over (under) expenditures Operating txansfers in Excess (deficiency) of other fin.~cing sources over (under) expenditures Fund balances, beginning of year Fund balances, end of year 47,478 20,855 100,000 120,855 $ 120,855 $ 105 Assets Cash and inves~nentz Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Senior Center Expansion Capital Projects Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 4,213,459 22,258 335,219 3,855,982 4,191,201 4,213,459 1998 106 CITY OF CUPERTINO, CALIFORNIA Senior Center Expansion Capital Projects Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances June 30, 1999 and 1998 1999 1998 $ Expenditures: Capital outlay Excess (defiency)of revenues over (under) expenditures Other financing sources: Operating transfers in Excess (deficiency) of other financing sources over (under) expenditures Fund balances, beginning of year Fund balances, end of year 208,799 (208,799) 4,400,000 4,191,201 $ 4,191,201 $ 107 Assets Cash and investments Liabilities and fund balances Liabilities: Accounts payable and accruals Fund balances: Reserved for encumbrances Unreserved: Undesignated Total fund balances Total liabilities and fund balances CITY OF CUPERTINO, CALIFORNIA Four Seasons Park Capital Projects Fund Coruparative Balance Sheets June 30, 1999 and 1998 1999 339,695 26,519 313,176 339,695 339,695 1998 108 Revenues: Other CITY OF CUPERTINO, CALI~ORHLA Four Seasons Park Capital Projects Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances June 30, 1999 and 1998 1999 1998 $ 243,000 $ Expenditures: Capi~loutlay Excess (defiency)of revenues over (under) expenditures Other financin§ sources: Operating transfers in Excess (deficiency) of other financing sources over (under) expenditures Fundbalances, beginning ofyea~ Fund balances, end of year 3,305 239,695 100,000 339,695 $ 339,695 $ 109 NOTES 110 ENTERPRISE FUNDS The Enterprise Funds account for the acquisition, operation and maintenance of governmental facilities in a manner similar to private enterprises, where the intent of the City is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered through user charges. Resource Recovery - Accounts for activity related to the collection and disposal of solid waste. A private company has been issued an exclusive franchise to perform these services. Blackberry Farm - Accounts for activities related to operating the picnic area and golf course. Cupertino Sports Center - Accounts for the operation and maintenance of the Cupertino Sports Facility. Recreation Programs - Accounts for activities of the City's community center. Senior Center - Accounts for the activities of the City's senior center. 111 CITY OF CLrPERTINO, CALIFORNIA Enterprise Funds Combining Balance Sheet Current assets: Cash and mvesm~ents Accounts receivable June 30, 1999 (With Comparative Totals for Fiscal Year Ended June 30, 1998) Cupertino Resource Blackberry Sports Recovel~ Farm Center $ 1,802,660 $ 304,717 $ 691,883 305,796 6,060 Total current assets 2,108,456 304,717 697,943 2,638 919,699 11,939 Fixed assets (net of accumulated depreciation) Total ~sets $ 2,111,094 $ 1,224,416 $ 709,882 Liabilities and equity Liabilities: Current liabilities: Accounts payable and accruals Accrued sick leave and vacation Deposits 142,558 $ 85,156 $ 48,154 2,611 I 11,752 7,129 157,627 Total current liabilities 145,169 354,535 55,283 145,169 354,535 55,283 1,965,925 869,881 654,599 1,965,925 869,881 654,599 Advances from other funds Total liabilities Equity: Retained earnings Total equity Total liabilities and equity $ 2,111,094 $ 1,224,416 $ 709,882 ii2 Recreation Semor Totals Programs Center 1999 1 ~98 $ 360,327 $ 302,566 $ 3,462,153 $ 2,604,749 311,856 292,690 360,327 302,566 3,774,009 2,897,439 934,276 809,334 $ 360,327 $ 302,566 $ 4,708,285 $ 3,706,773 13,709 $ 2,714 $ ' 292,291 $ 436,770 24,577 12,862 158,931 87,074 157,627 69,731 38,286 15,576 608,849 593,575 38,286 15,576 608,849 593,575 322,041 286,990 4,099336 3,113,198 322,041 286,990 4,099A36 3,113,198 $ 360,327 $ 302,566 $ 4,708~85 $ 3,706,773 113 CITY OF CUPERTINO, CALIFORNIA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Cupertino Resource Blackberry Sports Recovery Farm Center Operating revenues: Charges for services Other $ 2,314,355 $ 1,365,404 $ 802,557 1,231 89,216 56,800 Total operating revenues 2,315,586 1,454,620 859,357 93,969 689,225 141,507 2,022 265,119 88,041 1,765,989 192,800 635,096 731 74,075 16,375 1,862,711 1,221,219 881,019 452,875 233,401 (21,662) 89,639 29,437 24,724 89,639 29,437 24,724 542,514 262,838 3,062 440,000 (150,000) (75,000) (150,000) 365,000 542,514 112,838 368,062 1,423,411 757,043 286,537 Operating expenses: Salaries and benefits Materials and supplies Contractual services Depreciation Total operating expenses Operating income (loss) Non-operating revenues (expenses): Connection fees Interest income Sale of property Net nonoperating revenues (expenses) Income (loss) before operating transfers Operating lxansf~rs: Operating uan~fers in Operating lxansfers out Net operating ~ansfers Net income (loss) Retained earnings, beginning of year Residual equity transfer Retained earnings, end of year $ 1,965,925 $ 869,881 $ 654,599 114 Recreation Senior Programs Center Totals 1999 1998 1,409,606 $ 333,661 $ 6,225,583 $ 6,534,959 2,964 150,211 331,372 1,409,606 336,625 6,375,794 6,866,331 372,928 53,487 1,351,116 1,202,371 147,928 301,534 804,644 1,748,528 687,228 150 3,281,263 2,742,721 91,181 140,936 1,208,084 355,171 5,528,204 5,834,556 201,522 (18,546) 847,590 1,031,775 13,679 16,169 173,648 34,750 306,699 (15,996) 13,679 16,169 173,648 325,453 215,201 (2,377) 1,021,238 1,357,228 440,000 205,000 (250,000) (475,000) (275,000) (250,000) (35,000) (70,000) (34,799) (2,377) 986,238 1,287,228 356,840 289,367 3,113,198 5,785,515 (3,959,545) 322,041 $ 286,990 $ 4,099,436 $ 3,113,198 115 CITY OF CUPERTINO, CALIFORNIA Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Cupertino Resource Blackberry Sports Recovery Farm Center Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees $ 2,298,538 $ 1,543,707 $ 856,046 (1,870,154) (460,039) (699,915) (93,969) (689,225) (141,507) Net cash provided (used) by bperating activities 334,415 394,443 14,624 440,000 (150,000) (75,000) (150,000) 365,000 (216,123) (216,123) 89,639 29,437 24,724 89,639 29,437 24,724 424,054 57,757 404,348 1,378,606 246,961 287,535 Cash flows from noncapital financing activities: Repayment of interfund advances Operating txansfers in Operating transfers out Residual equity transfer Net cash provided (used) by noncapital financing activities Cash flows from capital and related fmnncing activities: Connection fees Purchase of f~xed assets Net cash provided (used) by capital and related financing activities Cash flows provided by investing activities: - Interest received Net cash provided by investing activities Net increase (decrease) in cash and investments Cash and investments, beginning of year Cash and investments, end of year 1,802,660 $ 304,718 $ 691,883 116 Recreation Senior Totals Programs Center 1999 1998 1,409,606 $ 336,625 $ 6,444,522 $ 6,911,010 (830,221) (298,197) (4,158,526) (4,613,738) (372,928) (53,487) (1,351,116) (1,202,371) 206,457 (15,059) 934,880 1,094,901 (62,867) 440,000 205,000 (250,000) (475,000) (275,000) (3,151,565) (250,000) (35,000) (3,284,432) 34,750 (216,123) (20,796) (216,123) 13,954 13,679 16,169 173,648 306,699 13,679 16,169 173,648 306,699 (29,864) 1,110 857,405 (1,868,878) 390,191 301J56 2,604,749 4,473,627 $ 360,327 $ 302,566 $ 3,462,154 $ 2,604,749 i i 7 (continued) CITY OF CUPERTINO, CALIFORNIA Enterprise Funds Combining Statement of Cash Flows (continued) For the Fiscal Year Ended June 30, 1999 (With Comparative Totals Totals for fiscal year ended June 30, 1998) 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 Amoritization of lease revenue Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accruals Increase (decrease) in accrued sick leave and vacation Increase (decrease) in deposits Total adjusmaents Net cash provided (used) by operating activities $ Cupertino Resource Blackberry Spor~s Recovery Farm Center $ 452,875 $ 233,401 $ (21,662) 731 74,075 16,375 (17,047) 1,191 (3,310) (104,755) (39,525) 19,228 2,611 37,404 3,993 87,896 (118,460) 161,041 36,286 334,415 $ 394,442 $ 14,624 118 Recreation Semor Totals Programs Center 1999 1998 -- $ 201,522 $ (18,546) $ 847,590 $ 1,031,775 91,181 140,936 (204,000) -, (19,166) 270,941 (19,642) 215 (144,479) (122,489) 24,577 3,272 71,857 '- 87,896 (22,262) 4,935 3,487 87,289 63,126 $ 206,457 $ (15,059) $ 934,879 $ 1,094,901 119 CITY OF CUPERTINO, CALIFORNq~ Resource Recovery Enterprise Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Current assets: Cash and investments Accounts receivable Total current assets Fixed assets (net of accumulated depreciation) Total assets Liabilities and equity Liabilities: Current liabilities: Accounts payable and accruals Accrual of sick leave and vacation Total current liabilities Equity: Retained earnings Total liabilities and equity 1999 1998 $ 1,802,660 $ 1,378,606 305,796 288,749 2,108,456 1,667,355 2,638 3,369 $ 2,111,094 $ 1,670,724 $ 142,558 $ 247,313 2,611 145,169 247,313 1,965,925 1,423,411 2,111,094 $ 1,670,724 120 CITY OF CUPERTINO, CALIFORNIA Resource Recovery Enterprise Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Charges for services Other revenues Total operating revenue Operating expenses: Salaries and benefits Materials and supplies Contraclual services Depreciation Total operating expenses Operating income Non-operating revenues (expenses): Interest income Sale of property Total nonoperafing revenues (expenses) Net income Retained earnings, beginning of year Retained earnings, end of year 1999 $ 2,314,355 $ 1,231 2,315,586 93,969 2,022 1,765,989 731 1,862,711 452,875 89,639 89,639 542,514 1,423,411 $ 1,965,925 $ 1998 2,100,480 2,100,480 83,958 36,944 1,595,280 1,886 1,718,068 382,412 69,713 (184) 69,529 451,941 971,470 1,423,411 121 CITY OF CUPERTINO, CALIFORNIA Resource Recovery Enterprise Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received fi.om customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapiml financing activities: Repayment of interfund advances Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and investments Cash and investments, beginning of year Cash and investments, end of year 1999 2,298,538 (1,870,154) (93,969) 1998 $ 2,089,981 (1,619,733) (83,958) 334,415 386,290 (62,867) 89,639 69,713 424,054 393,136 1,378,606 985A70 1,802,660 $ 1,378,606 Reconciliation of operating income Ooss) to net cush provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activilias: Depreciation Decrease (increase) in accounts receivable Increase (decrease) in accounts payable end accruals Increase (decrease) in accored sick leave and vacation Total adjustments Net cash provided (used) by operating activities $ 452,875 $ 382,412 731 (17,047) (104,755) 2,611 1,886 (10,499) 12,491 (118,460) 3,878 334,415 $ 386,290 122 CITY OF CUPERTINO, CALIFORNIA Blackberry Farm Enterprise Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Cunm3t assets: Cash ~nd investments Accounts receivable Total current assets Fixed assets (net of accumulated depreciation) Total assets 1999 1998 $ 304,717 $ 246,961 1,191 304,717 248,152 919,699 777,651 $ 1,224,416 $ 1,025,803 Liabilities and equity Liabilities: ~t liabilities: Accounts payable and accruals Accrual of sick leave and vacation Deposits Total current habilitias Equity: Retained earnings Total liabilities and equity $ 85,156 111,752 157,627 354,535 869,881 124,681 74,348 69,731 268,760 757,043 $ 1,224,416 $ 1,025,803 CITY OF CUPERTINO, CALIFORNIA Blackberry Farm Enterprise Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Operating revenues: Charges for services Other Total operating revenue Operating expenses: Salaries and benefits Materials and supphes Contractual services Depreciation Total operating expenses Operating income (loss) Non-operating revenues (expenses): Interest income Sale of property Net nonoperatmg revenues (expenses) Income (loss) before operating transfers Operating transfers: Operating Uansfers in Operating t~ansfers out Net operating transfers Net income (loss) Retained earnings, beginning of year Retained earnings, end of year 1999 $ 1,365,404 89,216 1,454,620 689,225 265,119 192,800 74,075 1,221,219 233,401 29,437 29,437 262,838 (150,000) (150,000) 112,838 757,043 1998 $ 1,326,910 1,326,910 583,314 649,916 145,837 74,311 1,453,378 (126,468) 22,771 (1,091) 21,680 (104,788) 80,000 (175,000) (95,000) (199,788) 956,832 $ 869,881 $ 757,043 !24 CITY OF CUPERTINO, CALIFORNIA Blackberry Farm Enterprise Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating transfers in Ope~ting transfers out Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities: Purchase of fixed assets Net cash provided (used) by capital and related activities Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and investments Cash and investments, beginning of year Cash and invest~ents, end of year 1999 $ 1,543,707 (460,040) (689,225) 394,442 (150,000) (150,000) (216,123) (216,123) 29,437 57,756 246,961 1998 1,308,263 (734,310) (583,314) (9,361) 80,000 (I75,000) (95,000) (20,796) (20,796) 22,771 002,386) 349,347 $ 304,717 $ 246,961 Reconcilintion of operating income (loss) to net cash provided (used) by operating activities Operatillg income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreeiafiun Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accruals Increase (decrease) in accored sick leave and vacation Increase (decrease) m deposits Total adjuslments Net c~h provided (used) by operating activities $ 233,401 $ (126,469) 74,075 1,191 (39,525) 37,404 87,896 161,041 74,312 3,615 61,443 (22,262) l17,10g $ 394,442 $ (9,361) 125 CITY OF CUPERTINO, CALIFORNIA Cupertino Sports Center Enterprise Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Current assets: Cash and investments Accounts receivable Total current assets Fixed assets (net of accumulated depreciation) Total assets Liabilities and equity Liabilities: Current liabilities: Accounts payable and accruals Accrual of sick leave and vacation Total current liabilities Equity: Retained earaiags Total liabilities and equity 1999 1998 $ 691,883 $ 287,535 6,060 2,750 697,943 290,285 11,939 28,314 $ 709,882 $ 318,599 $ 48,154 $ 28,926 7,129 3,136 55,283 32,062 654,599 286,537 $ 709,882 $ 318,599 126 CITY OF CUPERTINO, CALIFORNIA cupertino sports Center Enterprise Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Operating revenues: Charges for services Other revenues Total operating revenue Operating expenses: Salaries and benefits Materials and supplies ConWacmal services Depreciation Total operating expenses Operating income (loss) Non-operating revenues (expenses): Interest income Sale of property Total nonoperating revenues (expenses) Income (loss) before operating transfers Operating tzansfess: Operating transfers in Operalmg Wamfers out Net operating transfers Net income (loss) Retained earnings, beginning of year Retained earnings, end of year 1999 802,557 56,800 859,357 141,507 88,041 635,096 16,375 881,019 (21,662) 24,724 24,724 3,062 440,000 (75,000) 365,000 368,062 286,537 $ 654,599 1998 811,811 811,811 137,596 104,951 446,968 17,508 707,023 104,788 10,572 (303) 10,269 115,057 115,057 171A80 $ 286,537 127 CITY OF CUPERTINO, CALIFORNIA Cupertino Sports Center Enterprise Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating wausfers m Operating ~'ansfers out Net cash provided by noncapital financing activities Cash flows from capital and related fln.neing activities: Purchase of freed assets Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and investments Cash and mvasmaents, beginning of year Cash and invesUnents, end of year 1999 1998 $ 856,046 $ 810,191 (699,915) (529,262) (141,507) (137,596) 14,624 440,000 (75,000) 365,000 24,724 404,348 287,535 $ 691,883 143,333 10,572 153,905 133,630 $ 287,535 Reconciliation of operating income Ooss) to net cash provided (used) by operating activities Operating income (loss) $ (21,662) $ 104,788 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Decrease (increase) m accounts receivable Increase (decrease) in accounts payable and accruals Increase (decrease) in accused sick leave and vacation 16,375 (3,310) 19,228 3,993 Total adjustments 36,286 17,508 (1,620) 22,657 38,545 Net cash provided (used) by operating activities 128 $ 14,624 $ 143,333 Assets Current assets: Cash and inveslmants Liabilities and equity Liabilities: Current liabilities: Accounts payable nnd accruals Accnml o£sick leave and vacatian Total current liabilities Equity: Retained earnings Total liabilities and equity CITY OF CUPERTINO, CALIFORNIA Recreation Programs Enterprise Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 360,327 $ 390,191 $ 13,709 24,577 38,286 322,041 $ 33,351 33,351 356,840 $ 360,327 $ 390,191 _ 129 CITY OF CUPERTINO, CALIFORNIA Recreation Programs Enterprise Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Charges for services Operating expenses: Salaries and benefits Materials and supplies Contractual services Depreciation Total operating expenses Operating income (loss) Non-operating revenues (expenses): Interest income Sale of property Total nonoperafing revenues (expenses) Income (loss) before operating transfers Operating transfers: Operating transfers out Net operating transfers Net Income (loss) Retained earnings, beginning of year Retained earnings, end of year 1999 1,409,606 372,928 147,928 687,228 1,208,084 201,522 13,679 13,679 215,201 (250,000) (250,00o) (34,799) 356,840 322,o41 1998 1,178,522 332,210 142,438 522,627 364 997,639 180,883 14,757 (79) 14,678 195,561 (lO0,O00) (lOO,OOO) 95,561 261,279 356,840 130 CITY OF CUPERTINO, CALIFORNIA Recreation Programs Enterprise Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating Transfers om Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and investments Cash and investments, beginning of year Cash and investments, end of year 1999 1,409,606 (830,221) (372,928) 206,457 (250,000) 13,679 (29,864) 390,191 360,327 1998 1,179,735 (682,196) (332,210) 165,329 (100,000) 14,757 80,086 310,105 390,191 ReconciUation 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 Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accruals Increase (decrease) in accured sick leave and vacation Total adjustments Net cash provided (used) by operating activities 201,522 (19,642) 24,577 4,935 206~57 180,883 364 1,213 (17,131) (15,554) 165,329 131 CITY OF CUPERTINO, CALIFORNIA Senior Center Enterprise Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets Current assets: Cash and inves~nents Liabilities and equity Liabilities: Current liabilities: Accounts payable and accruals Accrued sick leave and vacation Total liabilities Equity: Retained earnings Total habilities and equity 1999 1998 $ 302,566 $ 301,456 $ 2,714 $ 2,499 12,862 9,590 15,576 286,990 12,089 289,367 $ 302,566 $ 301,456 132 CITY OF CUPERTINO, CALIFORNIA Senior Center Enterprise Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Operating revenues: Charges for services Other revenues Total operating revenue Operating expenses: Salaries and benefits Materials and supplies Conlractual services Total operating expenses Operaling income (loss) Non-operating revenues (expenses): Interest income Income (loss) before operating transfers Operating transfers: Operating mmsfers in Net income (loss) Retained earnings, bcg/nning of year Retained earnings, end of year 1999 $ 333,661 2,964 336,625 53,487 301,534 150 355,171 (18,546) 16,169 (2,377) (2,377) 289,367 1998 $ 378,957 378,957 45,568 335,852 440 381,860 (2,903) 15,627 12,724 125,000 137,724 151,643 $ 286,990 $ 289,367 133 CITY OF CUPERTINO, CALIFORNIA Senior Center Enterprise Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating transfers m Cash flows provided by investing activities: Interest received Net increase (decrease in cash and investments Cash and investments, beginning of year Cash and investments, end of year 1999 1998 336,625 $ 379,453 (298,197) (333,719) (53,487) (45,568) (15,059) 166 125,000 16,169 15,627 1,I10 140,793 301,456 160,663 302,566 $ 301,456 Reconciliation of operating income 0oss) to net cash provided (used) by operating activities Operating income (loss) $ (18,546) $ (2,903) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accruals Increase (decrease) in accured sick leave and vacation 215 3,272 Total adjustments 3,487 Net cash provided (used) by operating activities 496 2,573 3,069 $ (15,059) $ 166 134 INTERNAL SER VICE FUNDS The Internal Service Funds are used to account for the financing of goods or services provided by one depaxtment to other departments of the City on a cost reimbursement basis. Management Information Systems - Accounts for the activities related to the maintenance and replacement of the City's technology infxastructure. Workers' Compensation - Accounts for the activities in support of the self-insured workers' compensation program. Equipment Revolving - Accounts for the activities related to the maintenance and replacement of the City's vehicle fleet. Long-Term Disability - Accounts for the activities related to the City's program for long term disability. 135 CITY OF CUPERTINO, CALIFORNIA Internal Service Funds Combining Balance Sheet June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Management Information Workers' Systems Compensation Assets Current: Cash and mveslments Accounts receivable Other assets Total current assets Fixed assets (net of accumulated depreciation) Total assets Equipment Revolving $ 300,082 $ 921,081 $ 12,778 249 4,266 67,849 304,597 921,081 80,627 444,171 1,174,165 $ 748,768 $ 921,081 $ 1,254,792 Liabilities and equity Liabilities: Accounts payable and accruals Accrued sick leave and vacation Total liabilities Equity: Contributed capital Retained earnings Total equity Total liabilities and equity $ 74,759 $ 335,158 $ 5,406 7,890 4,944 82,649 335,158 10,350 382,283 666,119 585,923 862,159 666,119 585,923 1,244,442 $ 748,768 $ 921,081 $ 1,254,792 136 Long-Term Totals Disability 1999 1998 36,594 $ 1,270,535 $ 1,426,238 249 72,115 2,966 36,594 1,342,899 1,429,204 1,618,336 1,045,404 36,594 $ 2,961,235 $ 2,474,608 415,323 $ 356,970 12,834 428,157 356,970 382,283 386,323 36,594 2,150,795 1,731,315 36,594 2,533,078 2,117,638 $ 36,594 $ 2,961,235 $ 2374,608 137 CITY OF CUPERTINO, CALIFORNIA Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Year Ended June 30, 1999 (lVith Comparative Totals for fiscal year ended June 30, 1998) Operating revenues: Charges for services Total operating revenues Operating expenses: Salaries and benefits Materials and supplies Contractual services Insurance and claims Depreciation Total operating expenses Operating income (loss) Nonoperafing revenues (expenses): Interest income Other Total nonoperafing revenues (expenses) Income (loss) before operating transfers Opei'ating transfers: Operating transfers in Net operating transfers Net income (loss) Retained earnings, beginning of year Residual equity transfer Retained earnings, end of year Management Information Systems Workers' Equipment Compensation Revolving 391,328 $ 118,856 $ 657,350 391,328 118,856 657,350 148,614 6,830 155,344 60,247 129,608 105,131 5,780 94273 174,337 153264 242,253 467,456 186,947 621,678 (76,128) (68,091) 35,672 3,522 50,351 1,067 (3,448) 74,671 74 50,351 75,738 (76,054) (17,740) 111,410 358,000 43,000 358,000 43,000 281,946 (17,740) 154210 384,173 603,663 707,749 $ 666,119 $ 585,923 $ 862,159 138 Long-Term Totals Disability 1999 1998 53,693 $ 1,221,227 $ 954,465 53,693 1,221,227 954,465 55,714 310,788 203,179 189,855 205,205 205,384 203,036 230,051 85,033 395,717 305,059 55,714 1,331,795 1,001,5!2 (2,021) (110,568) (47,047) 2,885 57,825 80,858 71,223 (11,118) 2,885 129,048 69,740 864 18,480 22,693 401,000 243,100 401,000 243,100 864 419,480 265,793 35,730 1,731,315 1,429,608 35,914 36,594 $ 2,150,795 $ 1,731,315 139 CITY OF CUPERTINO, CALIFORNIA Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating ~rausfer in Residual equity transfer Net cash provided (used) by noncapital finsn, cing activities Cash flows from capital and related finnncing activities: Purchase of fixed assets ConU-ibuted capital Net cash used by capital and related financing activities Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and invesm~ents Cash and investments, b~ginninoo of year Cash and invesm~ents, end of year Management Information Workers' Equipment Systems Compensation Revolvmg 391,079 $ 118,~56 $ 657,350 (115,059) (170,495) (226,969) (140,724) (6,830) (173,540) 135,296 (58,469) 256,841 358,000 43,000 358,000 43,000 (379,285) (566,890) (379,285) (566,890) 3,522 50,351 1,067 117,533 (8,118) (265,982) 182,549 929,199 278,760 $ 300,082 $ 921,081 $ 12,778 140 Long-term Totals Disability 1999 1998 53,693 $ 1,220,978 $ 958,549 (55,714) (568,237) (584,526) (321,094) (204,468) (2,021) 331,647 169,555 401,000 243,100 35,914 401,000 279,014 (946~175) (649,007) 4,040 - (946,175) (644,967) 2,885 57,825 80,858 864 (155,703) (115,540) 35,730 1,426,238 1,541,778 36,594 $ 1,270,535 $ 1,426,238 141 CITY OF CUPERTINO, CALIFORNIA Internal Service Funds Combining Statement of Cash Flows (continued) For the Fiscal Year Ended June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) 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 Decrease (increase) in accounts receivable Decrease (increase) in other assets Increase (decrease) in accounts payable and accruals Increase (decrease) in accrued sick leave and vacation Total adjustments Net cash provided (used) by operating activities Management Information Workers' Equipmem Systems Compensation Revolving $ (76,128) $ (68,091) $ 35,672 153,464 242,253 (249) (1,300) 51,619 9,622 (2,888) 7,890 (18,196) 211,424 9,622 221,169 135,296 $ (58,469) $ 256,841 142 Long-term Disability Totals 1999 1998 $ (2,021) $ (110,568) $ (47,047) 395,717 305,059 (249) 4,084 (1,300) 5,085 58,353 (96,337) (10,306) (1,289) 442,215 216,602 $ (2,021) $ 331,647 $ 169,555 143 CITY OF CUPERTINO, CALIFORNIA Management Information Systems Internal Service Fund Comparative Balance Sheets June 30, 1999 and 1998 Assets.. Current: Casli and investments Accounts receivable Other assets Fixed assets (net of accumulated depreciation) Total assets 1999 1998 $ 300,082 $ 182,549 249 4,266 2,966 304,597 185,515 !~?,,171 225,838 $ 748,768 $ 411,353 Liabilities and equity Liabilities: Accounts payable and accruals Accrued sick leave and vacation Total Liabilities Equity: Con~'ibuted capital Retained earnings Total equity Total liabilities and equity $ 74,759 7,890 82,649 666,119 666,119 $ 23,140 23,140 4,040 384,173 388,213 $ 748,768 $ 411,353 144 CITY OF CUPERTINO, CALIFORNIA Management Information Systems Internal Service Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Charges for services Total operating revenues Operating expenses: Salaries and benefits Materials and supplies Conlractual services Deprecialion Total operating expenses Operating income (loss) Nonoperali~g revenues: Interest income Other Total nonoperafing revenues (expenses) Income (loss) before operating transfers Operating txansfera: Operating transfers in Net income (loss) Retained earnings, be~inni~n$ of year Retained earnings, end of year 1999 391,328 391,328 148,614 60,247 105,131 153364 467,456 (76,128) 3,522 (3,448) 74 (76,054) 358,000 281,946 384,173 $ 666,119 1998 297,910 297,910 52,636 61,747 128,272 120,148 362,803 (~,s93) 6,769 01,118) (4,349) (69,242) 177,600 108,358 275,815 384,173 145 CITY OF CUPERTINO, CALIFORNIA Management Information Systems Internal Service Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods end services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating transfers in Cash flows from capital end related financing activities: Purchase of fixed assets Contributed capital Net cash used by capital end related finencing activities Cash flows provided by investing activities: Interest received Net increase (decrease) in cash end investments Cash end invas'anents, beginning of yeas Cash end investments, end of year 1999 1998 $ 391,079 $ 297,910 (115,059) (169,958) (140,724) (53,925) 135,296 358,000 (379,285) (379,285) 3,522 117,533 182,549 $ 300,082 74,027 177,600 (183,772) 4,040 (179,732) 6,769 78,664 103,88S $ 182,549 Reconemation of operating income (loss) to net cosh provided (used) by operating activities Operating income (loss) $ (76,128) $ (64,893) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Decrease (increase) in accounts receivable Decrease (increase) in other assets Increase (decrease) in accounts payable end accruals Increase (decrease) in accut~d sick leave end vacation 153,464 (249) (1,300) 51,619 7,890 Total ad. jusunents 211324 Net cash provided (used) by operating activities $ 135,296 $ 146 120,148 5,085 14,976 (1,289) 138,920 74,027 Cun~nt: Cash and investments Liabilities and equity Liabilities: Accounts payable and accruals Equity: Retained earnings Total liabilities and equity CITY OF CUPERTLNO, CALIFORNIA Workers' Compensation Internal Service Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 921,081 $ 929,199 $ 335,158 $ 325,536 585,923 $ 921,081 603,663 $ 929,199 147 CITY OF CUPERTINO, CALIFORNIA Workers' Compensation Internal Service Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Operating revenues: Charges for services Total operating revenues Operating expenses: Salaries and benefits Contractual services Insurance and claims Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest income Total nonoperafng revenues Net income (loss) Returned earnings, beginning of year Retained earnings, end of year 1999 1998 $ 118,856 $ 111,152 118,856 6,830 5,780 174,337 186,947 (68,091) 50,351 50,351 (17,740) 603,663 111,152 5,884 263 32,208 38,355 72,797 52,018 52,018 124,815 478,848 $ 585,923 $ 603,663 148 CITY OF CUPERTINO~ CALIFORNIA Workers' Compensation Internal Service Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flOWS from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows provided by investing activities: Interest received Net increase (decrease) m cash and invesUnents Cash and mveslmcnts, beginning of year Cash and mvesmaents, end of year 1999 118,856 (170,495) (6,830) (58,469) 50,351 (8,11S) 929,199 921,081 1998 113,897 (135,031) (5,85~) (27,018) 52,018 25,000 904,199 929,199 Reconciliation of operating income 0oss) to net cash provided (used) by operating activities Operating income (loss) $ (68,091) $ 72,797 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Decrease (increase) in accounts receivable Increase (decrease) in accounts payable ami accruals 9,622 9,622 Toial adjuslments Net cash provided (used) by Olgrafing activities 2,745 0O2,56O) (~,815) $ (58,469) S (27,018) 149 Cash and investments Other assets Total current assets Fixed assets (net of accumulated depreciation) Total assets Liabilities and equity Liabilities: Accounts payable and accruals Accrued sick leave and vacation Total Liabilities Equity: Contributed capital Retained earnings Total equity Total liabilities and equity CITY OF CUPERTINO, CALIFORNIA Equipment Revolving Internal Service Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 $ 12,778 67,849 80,627 1,174,165 1998 $ 278,760 278,760 819,566 $ 1,254,792 $ 1,098,326 $ 5,406 4,944 10,350 382,283 862,159 1,244,442 $ 1,254,792 $ 8,294 23,140 382,283 707,749 1,090,032 $ 1,098,326 150 CITY OF CUPERTINO, CALIFORNIA Equipment Revolving Internal Service Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 Charges for services Total operating revenues Operating expenses: Salaries and benefits Materials and supplies Con~*actual services Insuranc~ and claims Depreciation Total operating expenses Operating income (loss) Nonopcraling revenues (expenses): Interest income Other Net nonoperating revenues Income (loss) before operating Wamfers Operating uansfers: Operating mmsfers in Net income (loss) Retained earnings, beginning of year Residual equity uamfer Retained earnings, and of year 1999 657,350 657,350 155,344 129,608 94,473 242,253 621,678 35,672 1,067 74,671 75,738 111,410 43,000 154,410 707,749 862,159 1998 495,205 495,205 144,659 143,458 74,501 108 184,911 547,637 (52,432) 19,827 19,827 (32,605) 65,500 32,895 638,940 35,914 707,749 151 CITY OF CUPERTENO, C~LIFOR_NIA Equipment Revolving Internal Service Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Operating transfers in Residual equity transfer Net cash used by noncapital financing activities Cash flows from capital and related financing activities: Purchase of fixed assets Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and investments Cash and investments, beginning of year Cash and investments, end of yeas 1999 1998 657,350 $ 496,421 (226,969) (222,817) (173,540) (144,659) 256,841 43,000 43,000 (566,890) 1,067 (265,982) 278,760 128,945 65,500 35,914 101,414 (465,235) 19,827 (215,049) 493,809 $ 12,778 $ 278,760 Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ 35,672 $ (52,432) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accruals Increase (decrease) in accured sick leave and vacation 242,253 (2,888) (18,196) Total adjustments 221,169 Net cash provided (used) by operating activities 152 $ 256,841 184,911 1,216 (4,750) 181,377 128,945 Assets Current: Cash and investments Liabilities and equity Equity: Retained earnings Total equity Total liabilities and equity CITY OF CUPERTINO, CALIFORNIA Long-Term Disability Internal Service Fund Comparative Balance Sheets June 30, 1999 and 1998 1999 1998 $ 36,594 $ 35,730 36,594 36,594 35,730 35,730 $ 36,594 $ 35,730 153 Operating revenues: Charges for services Operating expenses: Insurance and claims Operating income (loss) Nonoperating revenues (expenses): Interest income Total nonoperatmg revenues Net income (loss) Retained earnings, beginning of year Retained earnings, end of year CITY OF CUPERTINO, CALIFORNIA Long-Term Disability Internal Service Fund Comparative Statements of Revenues, Expenses and Changes in Retained Earnings For the Fiscal Years Ended June 30, 1999 and 1998 1999 1998 $ 53,693 $ 50,198 55,714 (2,021) 2,885 2,885 864 35,730 52,717 (2,519) 2,244 2,244 (275) 36,005 $ 36,594 $ 35,730 154 CITY OF CUPERTINO, CALIFORNIA Long-Term Disability Internal Service Fund Comparative Statements of Cash Flows For the Fiscal Years Ended June 30, 1999 and 1998 1999 53,693 (55,714) (2,021) 2,885 864 35,730 Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Net cash provided (used) by operating activities Cash flows provided by investing activities: Interest received Net increase (decrease) in cash and investments Cash and investments, beginning of year Cash and investments, end of year 36,594 Reconciliation of operating income Ooss) 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: Decrease (increase) in accounts receivable Increase (decrease) in accounts payable and accruals Total adjustments Net cash provided (used) by operating activities 1998 50,321 (56,720) (6,399) 2,244 (4,155) 39,885 35,730 $ (2,021) $ (2,519) 123 (4,003) (3,880) $ (2,021) $ (6,399) 155 NOTES 156 FID UCIAR Y FUNDS Fiduciary Funds include all agency funds which account for assets held by the City as an agent for individuals, private organizations, other governmental units and/or other funds. AGENCY FUNDS Agency funds are custodial in nature and do not involve measurement of results of operations. Such funds have no equity since any assets are due to individuals or other entities at some future time. Agency - Accounts for all deposits under the control of City departments. 157 CITY OF CUPERTINO, CALIFORNIA Agency Funds Combining Balance Sheet June 30, 1999 (With Comparative Totals for fiscal year ended June 30, 1998) Assets Cash and invesl~nents Toml ~se~ $ $ Totals Agency 1999 1998 13,835 $ 13,835 $ 37,807 13,835 $ 13,835 $ 37,807 Liabilities Deposits Total liabilities $ 13,835$ 13,835 $ 37,807 $ 13,835 $ 13,835 $ 37,807 158 All Agencv Funds Assets Cash and mvesUnents Liabilities Deposits CITY OF CUPERTINO, CALIFORNL~ Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Fiscal Year Ended June 30, 1999 Balance June 30, 1998 Additions Deletions Balance June 30, 1999 $ 37,807 $ 706 $ 24,678 $ 13,835 $ 37,807 $ 706 $ 24,678 $ 13,835 159 NOTES 160 GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is used to account for the control and valuation of capital assets owned by the City. These assets are recorded as expenditures of the various governmental funds during the year and are annually recorded in the General Fixed Assets Account Group at cost. Improvements consixucted in the public right of way, such as roads, bridges, curbs, gutters, streets, sidewalks, drainage and lighting systems are not recorded as fixed assets; rather, they are expenditures in the year the costs are incurred. 161 CITY OF CUPERTINO, CALIFORNIA Comparative Schedules of General Fixed Assets - By Source June 30, 1999 and 1998 General fixed assets: Land Buildings Improvements other than buildings Equipment Total general fixed assets Inveslment m general fixed assets by source: General fund ConsU'uction bond funds Special assessment fund Special revenue funds Storm drain construction funds Capital improvement fund Federal grants State grants County grants Donation from developers Invesm~ent-buildings Water assets Total investment in general fixed assets 1999 $ 60,835,080 11,386,201 19,056,616 1,010,896 $ 92,288,793 $ 43,692,376 8,009,419 4,601,486 3,492,821 573,829 19,274,219 882,977 161,566 229,123 1,844,747 6,704,208 2,822,022 $ 92,288,793 1998 $ 53,024,454 10,834,147 18,650,532 684,059 $ 83,193,192 $ 43,050,761 8,009,419 4,601,486 3,472,844 573,829 12,752,710 882,977 161,566 229,123 44,747 ~704,208 2,709,522 $ 83,193,192 162 CITY OF CUPERTINO, CALIFORNIA Schedule of General Fixed Assets - By Function and Activity June 30, 1999 Function and activity General government: Administrative services City hall City wanager Community services Community development Cable television Total general government Pubhc safety: Code enforcement Public works Parks Engineering Total other Total general fixed assets other than Land Buildings buildings . Equipment Total $ $ $ 122,837 $ 122,837 90,000 3,437,479 1,363,342 2,291 4,893,112 335,112 578 335,690 24,549 24,549 1,800,000 3,830 1,803,830 248,168 248,168 2,225,112 3,437,479 1,363,342 402,253 7,428,186 30,174 30,174 506,864 1,007,335 2,558,550 226,218 4,298,967 58,103,104 6,941,387 15,134,724 278,468 80,457,683 73,783 73,783 58,609,968 7,948,722 17,693,274 578,469 84,830,433 $ 60,835,080 $ 11,386,201 $ 19,056,616 $ 1,010,896 $. 92,288,793 163 CITY OF CUPERTINO Schedule of Changes in General Fixed Assets - By Function and Activity For the Fiscal Year Ended June 30, 1999 Function and activity General government: Admmiswative services City hall City manager Community services Community development Cable television General General Fixed Assets Fixed Assets June 30, 1998 Additions Deletions June 30, 1999 $ 110,070 $ 12,767 $ 4,847,393 45,719 335,690 11,659 12,890 3,830 1,800,000 143,269 104,899 $ 122,837 4,893,112 335,690 24,549 1,803,830 248,168 Total general government 5,451,911 1,976,275 7,428,186 Public safety: Code enforcement 30,174 30,174 Other: Public works 3,680,132 618,835 4,298,967 Parks 73,962,312 6,495,371 80,457,683 Engineering 68,663 5,120 73,783 Total other 77,711,107 7,119,326 84,830,433 Total general fixed asse~s $ 83,193,192 $ 9,095,601 $ $ 92,288,793 164 STATISTICAL SECTION 165 CITY OF CUPERTINO GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS Table 1 Fiscal Law Public Administrative Recreation Community Year Administration Enforcement Information Services(2) Services Development 1990 $654,842 $3,548,791 $351,420 $2,902,016 $892,812 $1,193,364 1991 $532,046 $3,515,973 $424,165 $4,640,521 $1,406,014 $1,745,110 1992 $588,747 $3,494,477 $412,293 $5,606,696 $1,525,263 $1,745,285 1993 $538,465 $3,705,059 $371,661 $1,423,349 $1,436,528 $1,517,568 1994 $600,891 $3,501,523 $424,636 $1,465,708 $1,509,808 $1,399,637 1995 $692,704 $3,769,584 $472,633 $1,549,162 $1,004,116 $2,859,582 (3) 1996 $809,492 $4,123,214 $513,106 $1,817,122 $1,045,300 $1,580,017 1997 $854,531 $4,118,027 $537,268 $1,750,575 $1,121,666 $1,608,010 1998 $856,836 $4,393,319 $590,667 $1,991,328 $1,164,822 $1,850,490 1999 $1,133,408 $4,892,704 $631,035 $2,008,976 $1,363,410 $2,101,942 Note: (1) Includes General, Special Revenue, Debt Service and Capital Project Funds. (Does not include other financing uses). (2) Beginning in 1993 the lease payments in Administrative Services have been reallocated to the Debt Service column. (3) Excludes losses fi.om sales of investments of $570,085. Source: City Administrative Services 166 Public Works $4,818,654 $5,645,312 $5,963,399 $4,999,412 $5,319,244 $6,759,807 $6,209,090 $6,786,574 $9,047,794 $9,167,386 Capital Outlay $14,160,363 $29,452,275 $10,627,790 $905,858 $1,769,875 $1,683,213 $5,005,071 $1,234,165 $4,412,291 $8,059,124 Debt Service $1,275,920 $335,193 $389,764 $5,560,835 $10,055,907 $6,206,507 $6,196,680 $7,125,413 $5,193,242 $5,178,897 Total $29,798,182 $47,696,609 $30,353,714 $20,458,735 $26,047,229 $24,997,308 $27,299,092 $25,136,229 $29,500,789 $34,536,882 167 CITY OF CUPERTINO GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS Table 2 Fiscal Year Taxes 1990 $11,626,584 $2,298,706 1991 $11,298,258 $2,670,987 1992 $t4,973,834 $2,866,780 1993 $13,757,203 $2,365,420 1994 $14,339,558 $1,622,393 1995 $14,363,104 $2,490,794 1996 $18,626,169 $2,417,589 1997 $18,182,889 $2,671,812 1998 $20,447,603 $2,776,441 1999 $18,837,091 $3,114,592 Note: Use of Money Inter- Charges Fines and Other and Property governmental for Services Forfeitures Revenue $2,367,399 $1,912,912 $300,188 $3,876,299 $1,619,177 $3,049,563 $2,030,985 $3,350,306 $1,660,878 $174,602 $3,076,844 $1,680,307 $174,626 $5,605,848 $1,924,429 $202,055 $666,070 $327,095 $1,107,618 $183,759 $1,481,482 $808,085 $226,7t4 $456,413 $4,660,903 $2,241,106 $193,720 $1,320,878 $2,903,880 $2,077,637 $205,366 $792,679 $3,602,596 $2,366,376 $241,293 $1,146,454 $5,650,954 $2,578,015 $503,223 $475,266 Total $19,171,859 $20,899,434 $24,586,403 $22,116,494 $21,120,442 $25,042,643 $29,460,365 $26,834,263 $30,580,763 $31,159,144 (1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. (Does not include other financing sources.) Source: City Administrative Services 168 CITY OF CUPERTINO PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Table 3 Percent of Percent Delinquent Total Total Tax Fiscal Total Current Tax of Levy Tax Tax Collections Year Tax Lev3' Collections Collected Collections Collections to Tax Levy 1990 $935,672 $878,417 93.88% $31,111 $909,528 97.21% 1991 $979,985 $945,511 96.48% $25,410 $970,921 99.08% 1992 $1,067,416 $1,009,174 94.54% $27,542 $1,036,716 97.12% 1993 $938,055 $892,293 95.12% $22,800 $915,093 97.55% 1994 $891,808 $891,723 99.99% $7,309 $899,032 100.81% 1995 $1,827,076 $1,827,076 100.00% $12,772 $1,839,848 100.70% 1996 $2,184,489 $2,184,489 100.00% $4,321 $2,188,810 100.20% 1997 $2,636,065 $2,636,065 100.00% $0 $2,636,065 100.00% 1998 $2,593,855 $2,593,855 100.00% $0 $2,593,855 100.00% 1999 $2,804,662 $2,804,662 100.00% $0 $2,804,662 100.00% Note: Beginning fiscal year 1995, total tax levy and current tax collections include amounts received from Santa Clara County under its tax equity allocation formula. Source: County of Santa Clara, Department of Finance 169 CITY OF CUPERTINO ASSESSED AND ESTIMATED ACTUAL VALUES OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Table 4 Total Estimated Fiscal Total Assessed Full Market Year Secured Exemptions Unsecured Valuation Valuation 1990 $3,204,141,990 $61,786,589 $684,354,244 $3,950,282,823 $3,950,282,823 1991 $3,813,377,777 $61,457,200 $702,476,460 $4,577,311,437 $4,577,311,437 1992 $4,051,286,063 $66,194,200 $742,695,167 $4,860,175,430 $4,860, I 75,430 1993 $4,242,090,997 $61,714,800 $584,295,328 $4,888,101,125 $4,888,101,125 1994 $4,506,162,220 $62,637,400 $605,453,614 $5,174,253,234 $5,174,253,234 1995 $4,563,933,460 $64,604,400 $550,201,549 $5,178,739,409 $5,178,739,409 1996 $4,585,406,820 $65,248,400 $470,880,987 $5,121,536,207 $5,121,536,207 1997 $4,730,865,467 $66,172,400 $440,005,909 $5,170,871,376 $5,298,764,322 1998 $5,078,070,121 $57,445,281 $452,549,925 $5,538,936,459 $5,538,936,459 1999 $5,591,299,195 $67,859,400 $443,973,509 $6,043,669,471 $6,043,669,471 Source: County of Santa Clam, Department of Finance 170 CITY OF CUPERTINO PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS Table 5 County County Bond County Retirement Library Retirement Cupertino City Bond Elem and/or Unif Sch Bonds High School Bonds Junior College Bonds Loan Repay-Cupertino Cupertino San Dist-Bond SCVWD-State Water Proj SCVWD-Zone W-1 Bond TOTALS 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.038 0.038 0.038 0.038 0.031 .0332 .0338 .0341 .0388 .0388 0.002 0.002 0.002 0.002 0.002 .0024 .0024 .0024 .0024 .0043 0.030 ............... .0182 .0303 .0292 .0247 0.002 0.001 0.001 0.001 .................. 0.003 0.001 0.001 0.001 .................. 0.012 ........................... 0.001 0.001 0.001 0.001 .................. 0.008 0.008 0.010 0.010 0.009 .0092 .0072 .0076 .0076 .0053 0.002 0.003 0.003 0.003 0.003 .0023 .0026 .0026 0.002 0.002 1.098 1.054 1.05~6 1.056 1.045 1.047 1.064 1.077 i.080 1.075 Source: County of Santa Clara Tax Rates and Information 171 CITY OF CUPERTINO PRINCIPAL TAXPAYERS JUNE 30, 1999 Table 6 Taxpayer Hewlett Packard Tandem Computers, Inc. Cupertino Gateway Partners Apple Computer Teachers Insurance & Annuity Cupertino City Center Ridgeview Court Associates Sumitomo Bank Leasing & Finance Hazel B. Lester Irvine Apartment Comms Type of Business Electronic Equipment Electronic Equipment Land Developer Electronic Equipment Commercial Land Developer Industrial Financial Commercial Residential 1998-99 Assessed Valuation $333,991,828 $267,977,189 $127,735,977 $110,099,496 $85,721,138 $69,004,026 $56,000,000 $52,677,800 $44,762,384 $37,212,000 $1~185~181~838 Percentage of Total Assessed Valuation 5.47% 4.39% 2.09% 1.80% 1.40% 1.13% 0.92% 0.86% 0.73% 0.61% 19~40% Source: The HdL Companies 172 CITY OF CUPERTINO SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS Table 7 Current Current Ratio of Fiscal Assessment Assessment Collections Year Due Collected to Amounts Due 1990 $349,866 $358,546 102.48% 1991 $376,389 $376,389 100.00% 1992 $324,285 $324,285 100.00% 1993 $280,095 $280,095 100.00% 1994 $279,250 $279,250 100.00% 1995 $277,680 $277,680 100.00% 1996 $240,382 $240,382 100.00% 1997 $239,548 $239,548 100.00% 1998 $243,848 $243,848 100.00% 1999 $321,984 $321,984 100.00% Source: County of Santa Clara and City Administrative Services 173 CITY OF CUPERTENO COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 1999 Table 8 Total Assessed Valuation Debt limit - 15 percent of Total Assessed Valuation Less - outstanding bonded debts Legal debt margin $6,043,669,471 $906,550,421 $906,550,421 Source: County of Santa Clam and City Administrative Services 174 CITY OF CUPERTINO RATIO OF GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Table 9 Fiscal Assessed General Bonded Debt Year Population Value Bonded Debt Per Capita 1990 40,580 $3,950,282,823 $80,000 1.97 1991 40,354 $4,577,311,437 $60,000 1.49 1992 41,079 $4,860,175,430 $40,000 0.97 1993 41,827 $4,888,101,125 $20,000 0.48 1994 42,441 $5,174,253,234 ...... 1995 43,489 $5,178,739,409 ...... 1996 43,627 $5,121,536,207 ...... 1997 44,775 $5,298,764,322 ...... 1998 46,682 $5,538,936,459 ...... 1999 50,000 $6,043,669,471 ...... Ratio of General Bonded Debt to Assessed Value 0.000020 0.000013 0.000008 0.000004 Source: County of Santa Clara and City AdminisWative Services 175 CITY OF CUPERTINO RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED Fiscal Year I990 1991 1992 1993 1994 1995 (2) 1996 1997 1998 1999 DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS Table 10 Ratio of Debt Total Debt Total General To General Principal Interest Service Expenditures (I) Expenditures $105,000 $7,475 $112,475 $29,798,182 0.0038% $20,000 $3,500 $23,500 $47,696,609 0.0005% $20,000 $2,500 $22,500 $30,353,714 0.0007% $20,000 $1,500 $21,500 $20,458,735 0.0011% $20,000 $500 $20,500 $26,047,229 0.0008% ......... $24,997,308 --- $27,299,092 $25,136,229 $29,500,789 $34,536,882 (1) Includes General, Special Revenue, Debt Service, and Capital Projects Funds (2) Excludes losses from sales of investments of $570,085 Source: City Administrative Services 176 CITY OF CUPERTINO COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT JUNE 30, 1999 Table 11 1998-99 Assessed Valuation: $6,043,669,471 DIRECT BONDED DEBT City of Cupertino 1915 Act Bonds Total Direct Bonded Debt June 30, 1999 Gross Bonded Percent Debt Balance Applicable $ 730,000 100.000% Net Bonded Debt $ 730,000 $ 730,000 OVERLAPPEqG BONDED DEBT Cupertino Union School District $69,799,994 Santa Clara Valley Water District Zone W-1 $13,340,000 Total Overlapping Bonded Debt 64.106% 5.011% TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT (1) 1998-99 Assessed Valuation: $6,043,669,471 Ratio to Assessed Valuation: Direct Debt 0.012% Total Gross Debt .7635% $44,745,984 $ 668,467 $45,414,451 (1) This report retie, em general obligation debt which is being repaid through voter-approved indebtedness. It excludes revenue, mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations and certificates of participation. Source: Santa Clara County 177 CITY OF CUPERTINO DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Table 12 School Fiscal Median Age Enrollment Unemployment Year Population (1) Years (2) Grades 9-12 (3) Rate (4) 1990 40,580 32.2 6,918 2.0% 1991 40,354 32.2 6,812 5.1% 1992 41,079 36.2 7,306 3.9% 1993 41,827 36.0 7,066 4.4% 1994 42,441 36.0 6,969 3.8% 1995 43,489 36.0 6,969 3.8% 1996 43,627 N/A 8,199 2.2% 1997 44,775 N/A 8,380 1.8% 1998 46,682 N/A 8,380 1.7% 1999 50,000 N/A 8,762 1.9% Source: (1) City Administrative Service (2) Cupertino Chamber of Commerce (3) Fremont Union High School District (4) Labor Statistics 178 Property Value (1) Fiscal Assessed Year Valuation 1990 $3,950,282,823 1991 $4,577,311,437 1992 $4,860,175,430 1993 $4,888,101,125 1994 $5,174,253,234 1995 $5,178,739,409 1996 $5,121,536,207 1997 $5,298,764,322 1998 $5,538,936,459 1999 $6,043,669,471 CITY OF CUPERTINO PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS LAST TEN YEARS Table 13 Residential Construction (2) Number of Units Commercial Construction (2) BankDeposits Value Value (in thousands)(3) 366 $39,554,995 $31,186,000 $1,081,397 96 $18,309,491 --- $1,202,787 22 $5,102,769 $63,771,540 N/A 17 $9,055,055 --- N/A 30 $7,579,919 --- N/A 118 $24,626,353 --- N/A 126 $23,423,228 $271,222 N/A 521 $51,129,923 $31,775,355 N/A 578 $62,019,693 $45,254,694 N/A 125 $42,771,247 $7,476,590 N/A Source: (1) County of Santa Clara, Depathnent of Finance (2) City Administxafive Services, City Building Department (3) Findley Reports 179 HISTORY OF CUPERTINO Cupertino owes its name and earliest mention in recorded history to the 1776 expedition led by the Spaniard Don Juan Bautista de Anza from Sonora, Mexico to the Port of San Francisco to found the Presidio of St. Francis. Leaving the majority of the party of men, women and children in Monterey to rest from their travels, de Anza, his diarist and cartographer Petrus Font and 18 other men pressed on through the Santa Clara Valley in late March to their San Francisco destination. With the expedition encamped in what is now Cupertino, Font christened the creek next to the encampment the Arroyo San Joseph Copertino in honor of his patron, San Guiseppe (San Joseph) of Copertino, Italy. The arroyo is now known as Stevens Creek. The village of Cupertino sprang up at the crossroads of Saratoga-Sunnyvale Road (now DeAnza Boulevard) and Stevens Creek Boulevard. It was first known as West Side, but by 1898 the post office at the Crossroads needed a new name to distinguish it from other similarly named towns. John T. Doyle, a San Francisco lawyer and historian, had given the name Cupertino to his winery, in recognition of the name bestowed on the nearby creek by Petrus Font. In 1904, the name was applied to the Crossroads and to the post office when the Home Union Store incorporated under the name, The Cupertino Stores, Inc. Many of Cupertino's pioneer European settlers planted their land in grapes. Vineyards and wineries proliferated on Montebello Ridge, on the lower foothills and on the flat lands below. After 1906 a lot more than grape growing was going on in Cupertino. Orchards were thriving and new businesses were being started. 180 HISTORY OF CUPERTINO, continued In the late 1940's Cupertino was swept up in Santa Clara Valley's postwar population explosion. Concerned by unplanned development, higher taxes and piecemeal annexation to adjacent cities, Cupertino's community leaders began a drive in 1954 for incorporation. Cupertino rancher Norman Nathanson, the Cupertino-Monta Vista Improvement Association and the Fact Finding Committee, played important roles in this movement. Incorporation was approved in a September 27, 1955 election. Cupertino officially became Santa Clara County's 13th City on October 10, 1955. A major milestone in Cupertino's development was the creation by some of the city's largest landowners of VALLCO Business and Industrial Park in the early 1960's. Of the 25 property owners, 17 decided to pool their land to form VALLCO Park, 6 sold to Varian Associates, a thriving young eleclxonic finn, founded by Russell Varian, and 2 opted for transplanting farms elsewhere. The name VALLCO was derived fi.om the names of the principal developers: Varian Associates and the Leonard, Lester, Craft and Orlando families. Source: This historical summary was drawn from the "Cupertino Chronical", published by the California History Center. 181 CUPERTINO CITY PROFILE The City of Cupertino was incorporated on Oct. 15,1955 and operates as a general law city with a city council-city manager form of government. Five council members serve four-year, overlapping terms, with elections held every two years. The council meets twice a month, on the first and third Mondays at 6:45 p.m. in City Hall. Donald Brown is Cupertino's city manager and has responsibility for implementing council policy and for managing the municipal services that are provided by the city's 131 full-time employees. City departments include administrative services (finance, human resources, city clerk, MIS and economic development divisions), community development, parks and recreation, public works (engineering, maintenance and environmental divisions) and public information. Police service is contracted through the county and fire service is provided through the County as well. Assisting the city council are several advisory boards and commissions: Housing, Telecommunication, Fine Arts, Library, Planning, Audit, Economic Development, Parks and Recreation and Public Safety. Members of the volunteer boards are appointed by the city council and vacancies are announced so that interested residents may apply for positions. Residents are kept informed about city services and programs via a monthly newsletter, the Cupertino Scene, and Cupertino's government access cable TV channel, The City Channel. The city sponsors several special programs throughout the year, including an awards ceremony for community volunteers, a student in government program, holiday recreational activities and a community parade. ECONOMIC PROFILE Cupertino, is located 42 miles south of San Francisco and 375 miles north of Los Angeles in Santa Clara County. Cupertino is 13 square miles and is bordered by San Jose, Saratoga, Surm .yvale, Santa Clara and C uper'tino Blossom Festival !~ in Bloom ~:.-'.i~ Again Los Altos. Cupertino's umque location, nestled against the foothills of the Santa Cruz Mountains at the west end of world famous "Silicon Valley," has facilitated its development as a balanced community with a healthy climate for business as well as many lovely residential neighborhoods. Residents of Cupertino have only a short drive to jobs anywhere in the Valley, and businesses which locate here need only to look in their back yards to find attractive housing. The excellent reputation of Cupertino's schools has also been a magnet for families wishing to settle in close proximity to jobs in the Santa Clara Valley. 182 Cupertino is the world headquarters for major corporations such as Apple Computer, Compaq and others. Several key divisions of Palo Alto based Hewlett-Packard are also located in Cupertino. This city of 50,000 residents enjoys shopping at the City's regional shopping mall, Vallco Fashion Park, and its economic climate is further enhanced by the many support industries and retail centers which have grown up mound the high technology giants. The Cupertino Chamber of Commerce works closely with the City Council to ensure that the business environment and economic climate of Cupertino are enhanced while maintaining a healthy balance with residential concerns. A unique community spirit exists in Cupertino and all of the leading businesses contribute to this cooperative approach through the many dynamic programs of the Chamber. Because Cupertino is not a community unto itself, it shares with its neighbors, such as San Jose and Sunnyvale, many of the challenges of economic prosperity. Local community leaders gather together in many different forums to address issues such as transportation, housing and planning for future growth. Economic Growth and Trends (in thousands) 199._.~5 1996 1997 Population in the County 1,607,700 1,612,258 1,671,400 Total Taxable Sales - County 22.561,360 25,257,736 25.793,716 Population in City Limits 43,489 44,775 44,800 Total Taxable Sales - City 669,480 705,594 726,832 Occupied Dwellings - City 15,665 15.707 17,065 School Enrollra~nt Gr K-8 14,507 14,877 15.240 School Enrollment Gr 9-12 8,199 8,380 8,762 The economic outlook for the Santa Clara Valley looks bright. The Valley has a uniquely competitive culture with infinite resources for innovations and new product development. Its special qualities of a suburban community within a thriving high technology center make it particularly attractive for businesses and residents alike. Sources: City of Cupertino, Cupertino Union School District, Fremont Union High School District, State Board of Equalization, Association of Bay Area Governments (ABA G}, and Santa Clara Finance & Planning Department, 1990 Census. INDUSTRIAL, COMMERCIAL & RESIDENTIAL PROPERTY The total area of incorporated City of Cupertino is approximately 10.4 square miles. In addition, there are approximately 0.96 square miles of unincorporated areas within the City's boundary. Land available for development is as follows: hillside residential 6%, commemial .2%, residential 1%, office and industrial .3%. Commemial land may mn as high as $1,500,000 per acre, office space lease rates range from $1.70 to $3.00 per square foot, all services included. R&D vacancy rates range fi'om zero to three pement per square foot, all services extra. Retail space lease rates range from $1.20 to $2.55 per square foot, all services extra. Fees will be assessed for the following: Street lighting, storm drains, water, plan checking inspection, park (residential only), sewer, construction tax, and school district fee. CHARACTERISTICS OF THE LABOR FORCE A large number of companies are not unionized due to progressive employee benefit programs. Wage rates, extent of unionization, fringe benefits, and related information for specific industries and job classifications may be obtained from the State Employment Development Department located at 297 West Hedding, San Jose, CA 95110 or at 800 Capitol Mall, Sacramento, CA 95814. 183 The Santa Clara County Labor Market (ABAG Projection 1995) Employed residents of County: 899,500 Total County employment: 917,700 Total civilian labor force: 946,600 Agriculture, Mining 6,430 Consmaction 28,730 Manufacturing 231,590 Transportation/Comm/Utilities 25,440 Retail Trade 120,430 Wholesale Trade 52,240 Finance/Real Estate/Insurance 31,280 Services 278,410 5overnment 52,800 TRANSPORTATION Rail - Southern Pacific, San Jose to San Francisco, with s~ line in Cupertino. Overnight Delivery to - Reno, Sacramento, San Francisco and Los Angeles. Air - Seven miles north of San Jose International ~a-'-rport; 32 miles south of San Francisco Airport. Bus - Santa Clara County Transit Systems, Greyhound ub-~-lines. Water - 20 miles south of Port of Redwood City. Highways - Interstate Route 280, State Route 85, U.S. 101, Foothill Expressway. WATER Water Service is supplied by San Jose Water, and Califomia Water Service Company. SANITARY DISTRICT Sanitary sewer service is provided by the Cupertino Sanitary District. The District has purchased 8.6 million gallons per day capacity in the San Jose/Santa Clara Pollution Control Plant. The Water Pollution Control Plant is a three stage plant, primary, secondary and tertiary. The current residential service charge is $216 per year and the commercial charges, based on water usage discharged, range from $1.474 per 100 cubic feet to $3.685 per 100 cubic feet plus a $1.14 per year charge for each trait of separate occupancy of a commercial or industrial premise. Connection fees, if not previously paid, are payable for all parcels not currently served by the District. STREET IMPROVEMENTS There are City standard dedication requirements. Improvement requirements include half of streets along frontage, plus nearest connection point for storm and water line. UTILITIES Natural gas and electricity is supplied by Pacific Gas and Electric Company, 10900 N. Blaney Avenue, 1-800-743-5000. Telephone service is supplied by Pacific Bell. For residential service hook-up call (800) 310- 2355; for business service call (800) 750-2355. Cable TV service is supplied by TCI Cablevision of California, (408) 257-5388. Garbage collection service is supplied by Los Altos Garbage, (408) 725-4020. 184 FINANCIAL INSTITUTIONS Cupertino has approximately 17 financial institutions, including banks, savings and loans, and thrift organizations. COMMUNITY FACILITIES Medical Care Cupertino is served by the Cupertino Medical Clinic and Camino Health Care. Nearby hospitals include E1 Camino Hospital in Mountain View, O'Connor Hospital in San Jose, San Jose Hospital, Community Hospital and Rehabilitation Center in Los Gatos, Kaiser Permanente Medical Center in Santa Clara, Stanford Hospital in Paio Alto and The Forum at Rancho San Antonio, a continuing care retirement center in Los Altos. Education - Cupertino is served by 14 pre-schools, 19 elementa~ schools, 4 junior high schools, 5 comprehensive high schools and De Anza community college. Cupertino is also the home of University of San Francisco Extention. Nearby universities are San Jose State University, Santa Clara University, Stanford University and National University. APPROXIMATE RACE/ETHNIC BREAKDOWN FOR CUPERTINO White 70.9%, Black 1.0%, Hispanic 4.5% Asian 21.9%, American Indian/Eskimo 0.2% Other 1.5% Source: ABAG VOTER REGISTRATION City 21,336 County 703,823 MAJOR PARTY REGISTRATION City 8,311 (D), 8,377 (R) County 331,919 (D), 232,552 (R) Source: County Registrar ofl/oters Climate Average Temperature Period Mm Mean Max Inches 8am 5pm JAN 40 49 57 2.82 85 66 APR 46 57 69 1.09 73 56 JULY 54 67 81 Trace 65 54 OCT 49 61 74 .65 62 58 YEAR 47 59 70 14.05 70 58 ELEVATION: 236 FEET Sources: National Weather Service CULTURE AND RECREATION HOTELS The Cupe~'mo Inn, a motor inn of 127 rooms and suites, is located at DeAnza Boulevard and Highway 1-280. Courtyard by Marriott is located in Cupertino Village on Wolfe Road at 1-280. The hotel has approx'nnately 137 rooms and 12 suites. The Hilton Gardens Inn is located next to Cupertino Village on Wolfe Road at 1-280. The hotel has approx'unately 165 rooms and six suites. Cupertino is served by 30 churches, 1 library, 28 radio stations, 15 TV channels received directly, the computer network system called Citynet, 2 TV cable systems, 11 parks, and 5 theaters, as well as the weekly Cupertino Comer, and World Journal newspapers and 2 daily newspapers: San Jose Mercury News and the San Francisco Chronicle. Cultural events include: The Cupertino Art & Wine Festival, Oktoberfest, Dickens Faire, Cherry Blossom Festival and the Fourth of July Fireworks. 185 Flint Center for Performing Arts, Minolta Planetarium, Euphrat Museum of Art, Ice Capades Challet, Deep Cliff Golf Course, Blackberry Farm Golf Course, Quinlan Community Center, a 27,000 sq fi facility for meetings, classses and banquets, Cupertino Senior Center, a 5,500 sq fi facility for senior activities; Cupertino Sports Center which offers tennis, fitness, swimming and racquetball; Community Recreation Center, a 10,100 sq fi facility, 25 lighted tennis courts, 4 swimming pools operated by the school districts, 4 health clubs, par courses, 1 racquetball club and a bowling alley. HOUSING Rentals for one and two bedroom apartments and duplexes range from $1,178 to $2,086 per month. Rentals for three bedroom houses range from $1,500 to $3,050 per month. The average price of existing single family homes was $516,625 as of December 1997. The average sale price for a condo or townhouse was $267,708. (Source: Century 21/Contempo Realty) TAX RATES AND GOVERNMENT SERVICES Residential, commemial, arid industrial property is appraised at full market values as it existed on March I, 1975, with increases limited to a maximum of 2% annually. Property created or sold since March 1, 1975 will bear full cash value as of the time created or sold, plus the 2% annual increase. The basic tax rate is $1.00 per $100 full cash value plus any tax levied to cover bonded indebtedness for county, city, school, or other taxing agencies. Assessed valuations and tax rates are published annually after July 1. 2. Industrial and commercial property tax rates per $100 assessed value varies from $1.0448 - $1.0471 depending on the tax rate area. 3. Retail Sales Tax: Santa Clara County Transit Depathnent: 1.0%, Unincorporated cities, county, city: 1.0%, State 6.00, County Mass Transit: .25%. Total: 8.25%. 4. Assessed Valuation (secured and unsecured): Cupertino $5,913,240,747 (1998-99), County $130,758,085 (1997-98). 5. Government: Cupertino has the Council-Manager type of government. 6. Police Department: Police service is supplied through a contract with the Santa Clara County Sheriff's Department. 186 Fire Department: Fire service is provided by the Santa Clara County Fire District which has three fire stations in the City. The County Fire Protection District covers an area of 116 square miles, has 193 personnel, 11 first line engines, plus a 100-foot ladder and a 55-foot telesquin, and a hazardous material reserve Unit. There are five reserve engines and two brush patrols for grass and brush fires. The District is augmented by a volunteer force of 44 firefighters. The City of Cupertino has a Fire Insurance Classification of 3. EMPLOYMENT There are over 50 firms engaging in manufacturing or research and development in Cupertino. Leading group classes of products are electronics. The largest firms in Cupertino are: ~tame of Company Hewlett-Packard /Ipple Computer Compaq Symantec Honeywell-Measurex Rational Software Siemens Non-Manufacturing Employment Employment Product 3,500 3, 000 3,000 1,300 375 375 462 Footh ill/DeAnza Community College District 3,000 Cupertino Union School District 1,400 Fremont Union High School District 443 Pacific Gas and Electric Company 278 JC Penney 250 Target 250 Sears 230 Mervyn's 122 Computers Computers Computers Software Process Controls Software for Networkx Electronic Components Education Education Education Utilities Retail Retail Retail Retail PARKS AND RECREATION Cupertino residents have a wealth of recreational and leisure activities available at the many city facilities, parks, and school grounds within the city. The Parks and Recreation Department offers classes and programs year round on a quarterly basis. Schedules of classes are published in the "Recreation Schedule", a quarterly publication that is mailed to all residents in the City. The Parks and Recreation Department also sponsors youth and family excursions, senior activities, tot and teen programs, and a number of clubs. CUPERTINO SPORTS CENTER Cupertino Sports Center is a great place to meet friends or conduct business meetings. The facility features 17 tennis courts (12 lighted), 5 racquetball courts, a swimming pool, complete locker rooms facilities, saunas, jacuz~is, and a fully equipped cardio fitness center. The center is located at the intersection of Stevens Creek and Stalling. 187 BLACKBERRYFARM This 33-acre recreational facility offers group picnics, swimming pools and a 9-hole golf course. The picnic grounds and swimming pools are located at 21975 San Femando Avenue and the Golf Course at 22100 Stevens Creek Boulevard. DEEP CLIFF GOLF COURSE This lovely 52-acre facility offers a number of amemties including a top quality golf course, new practice and teaching center as well as first class dining facilities. The new Deep Cliff Practice Center offers an 8000 sq. ft. putting green and 12 station hitting area to hone golf skills. A full service golf shop, lesson programs and climes are also available. Deep Cliff Golf Course is located at 10700 Clubhouse Lane. McCLELLAN RANCH PARK A horse ranch during the 1930's and 40's, this 18-acre park located at 22221 McClellan Road has the appearance of a working ranch. Preserved on the property are the original ranch house, milk barn, livestock barn and two historic buildings moved from other sites in the city: Baer's Blacksmith Shop, originally located at DeAnza and Stevens Creek Boulevards, and the old water tower from the Parish Ranch, now the site of Memorial Park. Also at McClellan Ranch are corrals where Rolling Hills 4-H Club members raise rabbits, chickens, sheep, swine and cattle, and a Junior Nature Museum, which features small live animal exhibits and dispenses information about bird, animal, and plant species of the area. Community garden (organic) plots are available for city residents to use. Tours of the farm buildings and Junior Museum are conducted for school children. MEMORIAL PARK Attractions at the 28-acre park located at Stevens Creek Boulevard at Mary Avenue include acres of lawn, ideal for family picmcs; a lake; amphitheater; lighted softball field and six lighted tennis courts, as well as the Semor Center, Quinlan Community Center and the Cupertino Sports Center. Additional City parks and their locations are: Creekside Park - Miller Avenue near Calle De Barcelona Hoover Park - Leed Avenue near Primrose Jollyman Park - Stelling Road near McClellan Road Linda Vista Park - Linda Vista Drive near Columbus Monta Vista Park - Foothill Boulevard and Voss Avenue PortalPark - N. Portal Avenue off Stevens Creek Boulevard Sun, met, et Square Park - Stokes Avenue near Peninsula Drive Three Oaks Park - Candlelight Way near Rainbow Varian Park - Ainsworth Drive at Vista Knoll Wilson Park - S. Portal Avenue near Stevens Creek Boulevard 188