Financial Report 06-30-1998CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR ENDED
JUNE 30, 1998
PREPARED BY:
CITY OF CUPERTINO
FINANCE DEPARTMENT
CAROL A. ATWOOD
DIRECTOR OF ADMINISTRATIVE SERVICES
NOTES
INTR OD UC TORY SE C TION
CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 1998
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
13
14
15
16
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
17
19
20
25
26
28
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 1998
Table of Contents
FINANCIAL SECTION (Continued)
Notes to General Purpose Financial Statemenis
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(lO)
(11)
(12)
(13)
(14)
Summary of Significant Accounting Policies
Cash and Investments
Related Party Loan
Fixed Assets
Long-Term Debt
Unreserved, Designated Fund Balances
Deficit Fund Balance
Segment Information for Enterprise Funds
Commitments and Contingencies
Liabilities Under Self-Insurance and Risk Management
Deferred Compensation Plan
Residual Equity Transfer
Other Post Retirement Benefits
Defined Benefit Pension Plan
Page
32
38
41
41
42
46
46
47
47
49
49
5O
51
51
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 of Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances
54
55
56
57
58
60
ii
CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 1998
Table of Contents
COMBINING, INDWIDUAL AND COMPARATWE 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
· Youth Sports Fund
· Vallco 74-3 Fund
· Vallco 74-4 Fund
Page
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64
66
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 1998
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
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:
· Water Fund
· Resource Recovery Fund
· Blackberry Farm Fund
· Cupertino Sports Center Fund
· Recreation Programs Fund
Senior Center Fund
Page
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92
94
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100
103
104
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108
112
115.
118
121
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 1998
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 Source
Schedule of General Fixed Assets - by Function and Activity
Schedule of Changes in General Fixed Assets - by Function and Activity
'Page
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V
CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 1998
Table of Contents
STATISTICAL SECTION
General Governmental Expenditures by
Function - Last Ten Fiscal Years
General Govemmental 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
4
5
6
7
8
9
10
11
12
13
Page
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168
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172
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174
-- vi
NOTES
Cupcrtflio
November 20, 1998
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, 1998, is submitted herewith. This annual report consists of three
sections. The Introductory Section includes l) 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 Department 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 terms. 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.
1
Pnnted on Recycled Paper
ECONOMIC CONDITIONS AND OUTLOOK
The City of Cupertino is located in Santa Clara County at the southern 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, Tandem
Computers, Measurex Corporation, NetManage 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.
2
Sales tax represents the major source of general fund revenue, comprising over 30%. Limited
availability for land development anti-the loss of sales~o other~egionat mails have contributed to
the slow growth of this revenue source as shown'below. The retail sales group will continue to
be'a focal poim for economic development as it comprises approximately 50°/6 of the. City's sales
tax activity.
$8,000-
$7,000
$6,000.
$5,000 ·
$4,000
$3,000
$2,000
$1,000
Sales Tax Trend
1990 1991 1992 1993 1994 1995 1996 1997 1998
~ADJ BY CPI
(In thousands)
Economic development has become a focal point for Cupertino. Last year the City approved
over one million square feet of new housing, expansion of the Symantec and Hewlett-Packard
facilities, and a new hotel. Our regional mall, recently purchased by the Jacobs Group, will open
a new Macy's and Sears Homelife ~dais Fall and a fora'th anchor store, Dittards, inthe Spring of
2000.
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
Major goals and objectives established in the 1997/98 budget were as follows:
Service Level efforts continued to be a high priority. The City has successfully
maintained existing staff levels while acquiring additional park land and recreation
facilities. This year, the City will consider the advantages/disadvantages of leasing our
water enterprise to a private company in an effort to maximize our assets and city-wide
benefit.
Automation continues to be implemented within the departments in an effort to increase
work efficiency and effectiveness. Efforts in fiscal year 1997/98 focused on upgrades to
equipment throughout the organization, implementation of a Finance/HR system and
ongoing implementation of a GIS system. The City's website, www.cup~o.org,
continued to expand.
Health and Safety is a desirable goal for all. City efforts this past year included the
continued training of City staff with CPR and safety classes. In partnership with the
Santa Clara County Fire Department, the City has implemented a proactive disaster
preparedness program with 17 neighborhoods now organized for earthquake awareness
and over 165 citizens trained in emergency response.
Leisure Activities continued with recreation programs offered to youths, adults and
seniors. The City completed renovation of nine youth sports fields and expanded its
community and afterschool programs. Creekside Park was completed which offers a
small community center and soccer field.
Cultural Diversity efforts continued with outreach programs, recreational activities,
neighborhood programs and expansion of community events. The CitY addressed our
changing demographics through the use of focus groups, community forums and the
establishment of the Cupertino Cross Cultural Consortium.
Current Year Projects, continued
Maintenance and Replacement of Infrastructure continues to be of main concern to
Cupertino. The five year capital improvement budget included projects for the fiscal
year 1997/98 designed to preserve, enhance and extend the City's existing infrastructure
and physical facilities. The Stevens Creek Boulevard Master Plan is currently underway
along with improvements at the Blackberry Farm picnic/swim area, the Sports Center,
McClellan Ranch and various parks. This year the City has embarked on expansion of
our Senior Center and community library.
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 opportunities 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. Planned installations within
the next two years include a new finance/human resources system, a building permits system, an
automated records management system, and an upgrade to the Parks and Recreation registration
system.
The City will continue implementation of the "HEART OF THE CITY" project which links the
major activity centers on Stevens Creek Boulevard from 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.
The City will be reviewing proposals for expansion and renovation at our regional mall. Such
growth will directly impact our schools, service efforts and traffic configurations.
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 Parks and Recreation Department.
Fiscal year' 1997-98 marked the establishment of the Blackberry Farm Retreat Center. Although
small in size, the employees have accomplished much. Highlights of the development of the .
center for 1997-98 included:
Developed a comfortable and
relaxing meeting space through
remodeling and upgrades of the
existing facility.
Continued high demand for this
quiet retreat center surrounded by
a golf course and park facilities.
Designed and implemented a
marketing plan and a retreat center
brochure.
Became a "favorite" off-site
retreat destination for Cupertino's govemmenal
organizations.
agencies,
school districts, and non-profit
· Added to the relaxed atmosphere with homemade meals and a fireside room.
We congratulate the Parks and Recreation Department for their achievements in all their projects
and wish them continued success in the growth of their programs.
6
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.
7
General Government Functions
The general government functions are accounted for in the general, special revenue, debt service
and capital project funds. These funds account for the majority of the City's operating revenues
and expenditures. Revenues for general government functions totaled approximately $30.6
million in fiscal year 1997/98, an increase of 13.96% over the preceding fiscal year. The
following table presents revenue by source and the related changes from the prior year.
Revenues by Source
Revenues Classified by Source
Governmental Fund Types
Amount
Percent of Total
Increase/(Decrease)
over previous year
Amount Percent
· Taxes
Use of Money & Property
Intergovernmental
Charges for Services
Fines and Forfeitures
Other Revenue
$20,447,603 66.86% $ 2,264,704 12.46%
2,776,441 9.08 104,629 3.92
3,602,596 11.78 698,716 24.06
2,366,376 7.74 288,739 13.90
241,293 0.79 35,927 17.49
1,146,454 3.75 353,775 44.63
Total $30,580,763 100.00% $3,746,490 13.96%
Taxes increase as a resUlt of additional sales, transient occupancy and construction tax receipts.
Intergovernmental revenues were higher due to an increase in vehicle in-lieu tax.
Expenditures Classified by .Major Service Area
Governmental Fund Types
Expenditures for general governmental functions for fiscal year 1997/98 totaled approximately
$29.5 million, an increase fi.om the preceding fiscal year of 17.36%. 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
Percent of Total
Increase/(Decrease)
over previous year
Amount Percent
Administration $ 856,836 2.90% 2,305 0.27%
Law Enforcement 4,393,319 14.89 275,292 6.69
Public Information 590,667 2.00 53,399 9.94
Administrative Services 1,991,328 6.75 240,753 13.75
Recreation Services 1,164,822 3.95 43,156 3.85
Community Development 1,850,490 6.27 242,480 15.08
Public Works 9,047,794 30.67 2,261,220 33.32
Capital Outlay 4,412,291 14.96 3,178,126 95.46
Principal 2,110,000 7.15 (1,725,000) (44.98)
Interest 3,083,242 10.45 (207,171) (6.30)
Total $29,500,789 100.00% $4,364,560 17.36%
Public Works increased this year due to storm damage expenditures and the addition of several
employees for median and tree maintenance. Debt principal decreased because of the Youth
Sports Field debt was paid off in 1997. Capital Project expenditures increased due to an
expanded street program and the recognition of a $2 million dollar contingent liability.
Proprietary Operations
Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprise where thc intent is that thc 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, 1998.
Revenues, Expenses, and Results of Operations
Enterprise Funds
Operating Operating Operating Net
Revenues Expenses Income/(loss) Income/(loss)
Water $1,069,651 $576,587 $ 493,064 $686,734
Resource Recovery 2,100,480 1,718,068 382,4 ! 2 451,941
Blackberry Farm 1,326,910 1,453,379 (126,469) (199,789)
Cupertino Sports Center 811,811 707,023 104,788 115,057
Recreation Programs 1,178,522 997,639 180,883 95,561
Senior Center 378,957 381,860 (2,903) 137,724
Totals $6,866,331 $5,834,556 $1,031,775 $1,287,228
The Water Enterprise was leased to a private company in October 1997 and Blackberry Farm had
lower than expected revenues due to the extensive winter storms that flooded the golf course and
picnic areas. All other enterprise activity came in as expected.
Internal Service Funds are used to account for the financing of services provided by one
department 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, 1998.
Revenues, Expenses, and Results of Operations
Internal Service Funds
Operating Operating Operating Net
Revenues Expenses Income/(loss) Income/(loss)
Management Information
Systems
Workers' Compensation
Equipment Revolving
Long-Term Disability
$297,910 $ 362,803 $(64,893) $108,358
111,152 38,355 72,797 124,815
495,205 547,637 (52,432) 32,895
50,198 52,717 (2,519) (275)
Totals $954,465 $1,001,512 $(47,047) $265,793
Resources are being accumulated in the Equipment Revolving Fund and Management
Information Systems fund to provide for future replacement of existing equipment.
10
Fiduciary Operations
The City maintains one agency fund. This agency fund accounts for all deposits from third
parties under the control of City departments.
Debt Administration
As of June 30, 1998, 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 $51.2 million in certificates of participation and
$900,000 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 Califomia
government code.
The City investments include obligations of the U.S. Treasury, agencies and instrumentalities,
commercial 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 $2.9 million.
Risk Management
The City maintains a program of commercial 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.
11
INDEPENDENT AUDIT
The City's Charter requires an annual audit of the financial records by an independent certified
public accounting firm 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 ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Cupertino for its Comprehensive Annual Financial Report for the year ended June 30, 1997.-
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized Comprehensive Annual Financial Report, whose contents
conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for a period
of one year only. We believe 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 OlsonoMiller, and Dorothy Steenfott for their efforts in the
preparation and production of this report.
Respectfully submitted,
Carol A. Atwood
Director of Administrative Services
12
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, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
CITY OF CUPERTINO, CALIFORNIA
Fiscal Year 1997/98
CITY COUNCIL
Mayor - Michael Chang
Vice Mayor - Wally Dean
Councilmember - Don Bumett
Councilmember - Sandra James
Councilmember - John Statton
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
14
CITY OF CUPERTINO, CALIFORNIA
Fiscal Year 1997/98
COMMISSIONS AND COMMITTEES
CUPERTINO HOUSING COMMITTEE
Sylvia Machamer, Chairperson
Cecilia K. Fu
Kathy Robinson
Richard Schuster
FINE ARTS COMMISSION
Rita Young, Chairperson
Janet Mohr, Vice Chairperson
Stephen Beard
Hema K. Kundargi
Carl Orr
Charlene Pai-Brizendine
Mary Sievert
PUBLIC SAFETY COMMISSION
John Drexler, Chairperson
Harvey Checkman, Vice Chairperson
Charles Corr
Charles E. Pickett
Andrew Zander
RECREATION COMMISSION
Frank Jelinch, Chairperson
Edye Stein, Vice Chairperson
Robert Hopkins
Richard Lohmiller
Saleem Shaikh
ECONOMIC DEVELOPMENT COMMITTEE
Carol Atwood
Linda Asbury
Don Brown
Robert Cowan
Paula Davis
Steve Dowling
Sandra James
Bill Jones
Donna Lawler
John Statton
Dorothy Steenfott
Bert Viskovich
TELECOMMUNICATIONS COMMISSION
William Mannion, Chairperson
Salvatore Algeri, Vice Chairperson
L. T. Guttadauro
Ernest Tsui
Mike Wincen
LIBRARY COMMISSION
Charles Pow, Chairperson
Yuhfen Diana Wu, Vice Chairperson
Jean Bedord
Jillian Hamer
Mary Minow
PLANNING COMMISSION
Donna Austin, Chairperson
On'in Mahoney, Vice Chairperson
David Doyle
Andrea Harris
Jen-y Stevens
AUDIT COMMITTEE
Carol Atwood, Chairperson
Tom Hall, Vice Chairperson
Don Brown
Wally Dean
Sandra James
Emily Wagner
16
FINANCIAL SECTION
17
NOTES
18
Accountants and
Management Consultants
The US Member Firm of
Grant Thornton International
Gram Thornton
GRANT THORNTON LLP
REPORT OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and Members of the City Council
City of Cupertino, California
We have audited the accompanying general purpose financial statements of the City of Cupertino,
California, as of June 30, 1998 and for the year then ended, as listed in the table of contents. These
general purpose financial statements are the responsibility of the City's management. Our responsibility is
to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of matedal misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An
audit also includes assesSing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present faidy, in all matedal
respects, the financial position of the City of Cupertino, California as of June 30, 1998 and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining, individual and comparative fund and account group
statements and schedules listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the general purpose financial statements of the City of Cupertino, California.
Such information has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is faidy presented, in all material respects, in relation to the general
purpose financial statements taken as a whole.
The statistical section listed in the table of contents is not a required part of the basic general purpose
financial statements. We did not audit or apply limited procedures to such information and do not express
an opinion on such information.
San Francisco, Califomia
October 7, 1998
Suite 1100
One California Street
San Francisco, CA 94111
Tel: 415 986-3900
Fax: 415 986-3916
19
CITY OF CUPERTINO, CALIFORNIA
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1998
Assets and other debits
Assets:
Cash and investments
Receivables:
· Accounts
Loans
Assessments
Other assets
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
General
$ 36,443,983 $
1,483,198
1,135,256
33,487
Governmental Fund Types
Special Debt Capital
Revenue Service Projects
4,633,980 $ 5,349,356 $ 1,100,603
20,199 10,206
1,705,266
750,000
$ 39,095,924 $ 6,359,445 $ 6,099,356 $ 1,110,809
See accompanying notes to general purpose financial statements.
20
Proprietary Fund Types
Internal
Enterprise Service
Fiduciary
Fund Types
Agency
Account Groups
General General Totals
Fixed Long-Term (Memorandum
Assets Debt only)
$ 2,604,749 $ 1,426,238 $
292,690
809,334
2,966
1,045,404
$ 3,706,773 $ 2,474,608 $
37,807 $ $ - $
83,193,192
- 5,349,356
- - 46,755,644
37,807 $ 83,193,192 $ 52,105,000 $
51,596,716
1,806,293
2,840,522
750,000
36,453
85,047,930
5,349,356
46,755,644
194,182,914
(continued)
21
CITY OF CUPERTINO, CALIFORNIA
Combined Balance Sheet
All Fund Types and Account Groups - Continued
june 30, 1998
Liabilities, equity and other credits
Liabilities:
Accounts payable and accruals
Accrued sick leave and vacation
Deposits
Deferred revenue
Special assessment debt with governmental commitment
Certificates of Participation
Total liabilities
Equity and other credits:
Investment 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
General
Governmental Fund Types
Special Debt Capital
Revenue Service Projects
$ 772,332 $ 35,204 $
1,241,820 21,644
624,899
52,367 576,299
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 $
See accompanying notes to general purpose financial statements.
750,000
633,147
750,000
318,254
1,128,967
10,393
4,268,684
5,726,298
6,359,445 $
5,349,356
5,349,356
6,099,356
$ 2,014,356
2,014,356
328,983
(1,232,530)
(903,547)
$ 1,110,809
22
Proprietary Fund Types
Internal
Enterprise Service
Fiduciary
Fund Types
Agency
Account Groups
General
Fixed
Assets
General
Long-Term
Debt
Totals
(Memorandum
only)
436,77O $
87,074
69,731
593,575
3,113,198
3,113,198
3,706,773 $
356,970 $
356,970
386,323
1,731,315
2,117,638
2,474,608 $
37,807
37,807
$ $
900,000
51,205,000
52,105,000
83,193,192
- 83,193,192
37,807 $ 83,193,192 $ 52,105,000 $
$ 3,615,632
1,350,538
732,437
1,378,666
900,000
51,205,000
59,182,273
83,193,192
386,323
4,844,513
773,623
5,349,356
2,264,223
1,648,916
1,408,581
14,955,205
20,176,709
135,000,641
194,182,914
23
NOTES
24
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, 1998
Revenues: Taxes
Use of money and property
Intergovernmental
Charges for services
Fines and forfeitures
Other revenue
Total revenues
Governmental Fund Types Totals
Special Debt Capital (Memorandum
General Revenue Service Projects only,)
18,138,157 $ 2,066,535 $ 242,911 $ - $ 20,447,603
2,042,599 419,701 314,005 136 2,776,441
2,549,186 943,734 109,676 3,602,596
2,039,479 326,897 - 2,366,376
241,293 - 241,293
968,733 148,626 29,095 1,146,454
25,979,447 3,905,493 556,916 138,907 30,580,763
Expenditures:
Administration 856,836 856,836
Law enforcement 4,393,319 4,393,319
Public Information 590,667 590,667
Administrative services 1,991,328 1,991,328
Recreation services 1,164,822 1,164,822
Community development 1,701,259 149,231 1,850,490
Public works 6,845,175 2,202,619 9,047,794
Capital outlay 155,095 4,257,196 4,412,291
Debt service:
Principal 2, I 10,000 2,110,000
Interest 3,083,242 3,083,242
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
17,543,406 2,506,945 5,193,242 4,257,196 29,500,789
8,436,041 1,398,548 (4,636,326) (4,118,289) 1,079,974
Other financing sources (uses):
Operating transfers in
Operating transfers out
2,400,500 35,000 4,653,000 422,323 7,510,823
(5,461,100) (2,197,323 ) (25,500) (7,683,923)
Total other financing sources (uses)
(3,060,600) (2,162,323) 4,653,000 396,823 (173,100)
5,375,441 (763,775) 16,674 (3,721,466) 906,874
21,073,728 6,490,073 5,336,454 2,817,919 35,718,174
9,955,337 - (3,772) 9,951,565
Excess (deficiency) of revenues
over (under) expenditures
and other financing sources (uses)
Fund balances, beginning of year
Residual equity transfer
Fund balances, end of year
$ 36,404,506 $ 5,726,298 $ 5,349,356 $ (903,547) $ 46,576,613
See accompanying notes to general purpose financial statements.
25
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, 1998
Revenues: 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
Other financing sources (uses):
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues over (under)
expenditures and other financing sources (uses)
Fund balances, beginning of year
Residual equity transfer
Fund balances, end of year
See accompanying notes to general purpose financial statements.
Amended
Budget
$ 18,142,000
2,176,000
2,140,145
1,995,000
147,000
7,490,000
32,090,145
921,395
4,853,662
602,657
2,054,165
1,172,995
1,703,678
6,846,046
18,154,598
13,935,547
4,400,500
(5,461,100)
(1,060,600)
12,874,947
21,073,728
$ 33,948,675
26
General Fund
Actual
$ 18,138,157
2,042,599
2,549,186
2,039,479
241,293
968,733
· 25,979,447
856,836
4,393,319
590,667
1,991,328
1,164,822
1,701,259
6,845,175
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
Variance
Favorable
(Unfavorable)
$ (3,843)
(133,401)
409,041
44,479
94,293
(6,521,267)
(6,110,698)
64,559
460,343
11,990
62,837
8,173
2,419
871
611,192
(5,499,506)
(2,ooo,ooo)
(2,000,000)
(7,499,506)
9,955,337
$ 2,455,831
Special Revenue Funds
Amended
Budget
2,100,000 $
262,000
931,000
381,000
Actual
2,066,535 $
419,701
943,734
326,897
Variance
Favorable
(Unfavorable)
(33,465') $
157,701
12,734
(54,103)
145,375
3,819,375
148,626
3,905,493
3,251
86,118
Debt Service Funds
Amended
Budget
Actual
Variance
Favorable
(Unfavorable)
175,000 $
397,000
242,911 $
314,005
67,911
(82,995)
572,000
556,916
(15,084)
158,095
2,568,982
1,076,692
3,803,769
15,606
35,000
(2,197,323)
(2,162,323)
(2,146,717)
6,490,073
149,231
2,202,619
155,095
2,506,945
1,398,548
35,000
(2,197,323)
(2,162,323)
(763,775)
6,490,073
8,864
366,363
921,597
1,296,824
1,382,942
1,382,942
2,110,000
3,095,800
5,205,800
(4,633,800)
2,110,000
3,083,242
5,193,242
(4,636,326)
12,558
12,558
(2,526)
(2,526)
(3,772)
(6,298)
4,653,000 4,653,000
4,653,000 4,653,000
19,200 16,674
5,336,454 5,336,454
(3,772)
$ 4,343,356 $ 5,726,298 $ 1,382,942 $ 5,355,654 $ 5,349,356 $
27
CITY OF CUPERTINO, CALIFORNIA
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings
All Proprietary Fund Types
For the Fiscal Year Ended June 30, 1998
Operating revenues:
Charges for services
Other
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Insurance and claims
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Connection fees
Interest income
Sale of Property
Total nonoperati~g revenues (expenses)
Net income (loss) before operating transfers
Operating transfers:
Operating transfers in
Operating transfers out
Net operating transfers
Net income (loss)
Retained earnings, beginning of year
Residual equity transfer
Retained earnings, end of year
Enterprise
$ 6,534,959
331,372
6,866,331
1,202,371
1,748,528
2,742,721
140,936
5,834,556
1,031,775
34,750
306,699
(15,996)
325,453
1,357,228
205,000
(275,000)
(70,000)
1,287,228
5,785,515
(3,959,545)
$ 3,113,198
See accompanying notes to general purpose financial statements.
28
Internal
Service
$ 954,465
954,465
203,179
205,205
203,036
85,033
305,059
1,001,512
(47,047)
80,858
(11,118)
69,740
22,693
243,100
243,100
265,793
1,429,608
35,914
$ 1,731,315
Totals
(Memorandum
only)
$ 7,489,424
331,372
7,820,796
1,405,550
1,953,733
2,945,757
85,033
445,995
6,836,068
984,728
34,750
387,557
(27,114)
395,193
1,379,921
448,100
(275,000)
173,100
1,553,021
7,215,123
(3,923,631)
$ 4,844,513
CITY OF CUPERTINO, CALIFORNIA
All Proprietary Fund Types
Combined Statement of Cash Flows
For the 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
Enterprise
Internal
Service
Totals
(Memorandum
only)
$ 6,911,010 $ 958,549 $ 7,869,559
(4,613,738) (584,526) (5,198,264)
(1,202,371) (204,468) (1,406,839)
Net cash provided (used) by operating activities
1,094,901
169,555
1,264,456
Cash flows from noncapital financing activities:
Repayment of interfund advances
Operating transfers in
Operating transfers out
Residual equity transfer
(62,867)
205,000
(275,000)
(3,151,565)
243,100
35,914
(62,867)
448,100
.(275,000)
(3,115,651)
Net cash provided (used) by noncapital
financing activities
(3,284,432)
279,014
(3,005,418)
Cash flows from capital and related financing activities:
Connection fees
Purchase of fixed assets
Contributed capital
Net cash used by capital
and related financing activities
34,750
(20,796)
13,954
306,699
306,699
(1,868,878)
4,473,627
(649,007)
4,040
(644,967)
34,750
(669,803)
4,040
(631,013)
387,557
387,557
Cash flows provided by investing activities:
Interest received
80,858
80,858
Net cash provided by investing activities
Net increase (decrease) in cash and investments
(115,540) (1,984,418)
Cash and investments, beginning of year
1,541,778 6,015,405
Cash and investments, end of year
$ 2,604,749 $ 1,426,238 $ 4,030,987
In addition to a cash residual equity transfer of $3,151,565 to the General Fund, the Water Fund was closed with a
transfer of the remaining fixed assets to the General Fixed Asset Fund. The net book value at the time of the residual
equity transfer was $1,215,297 with fixed assets with an original cost of $2,709,522.
29 (continued)
CITY OF CUPERTINO, CALIFORNIA
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
All Proprietary Fund Types
For the Fiscal Year Ended June 30, 1998
Enterprise
Internal
Service
Totals
(Memorandum
only)
Operating Income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
Amortization of lease revenue
Decrease (increase) in other assets
Decrease (increase) in accounts receivable
Increase (decrease) in 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.
$ 1,031,775
140,936
(204,000)
270,941
(122,489)
(22,262)
63,126
1,094,901 $
$ (47,047) $ 984,728
305,059
5,085
4,084
(96,337)
(1,289)
216,602
169,555 $
445,995
(204,000)
5,085
275,025
(218,826)
(1,289)
(22,262)
279,728
1,264,456
30
NOTES TO GENER,4L PURPOSE
FIN,4NCL4L ST,4 TEMENTS
31
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(1)
SUMMARY OF SIGNIFICANT ACCOUNTING 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
departments: 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 Sheriffs Department 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 present the City's 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 fi:om 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, after acquiring certain properties fi:om 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 and 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 Administrative Services has been appointed
Treasurer.
(b) Measurement Focus, Basis of Accounting and Basis of Presentation
The accounts of the City are organized and operated on the basis of funds and
account groups. A fired is an independent fiscal and accounting entity with a self-
balancing set of accounts. Fund accounting segregates funds according to their
intended purpose and is used to assist management in demonstrating compliance
with finance-related legal and contractual provisions. The minimum number of
fimds 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.
32
O)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (continued)
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 transaction can be determined and
"available" means collectible within the cun'ent period or soon enough thereafter
to pay liabilities of the current period. The City considers all revenues available if
they are collected within 90 days after year end except for property taxes which
are considered available if collected within 60 days. Expenditures are recorded
when the related fund liability is incurred, except for unmamred interest on
general long-term debt which is recognized when due.
Property taxes, utility taxes, fi:anchise 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 recognized as revenue. Expenditure-driven grants are
recognized as revenue when the qualifying expenditures have been incurred and
all other grant requirements have been met. Other receipts and taxes are
recognized as revenue when the cash is received.
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 accumulation of resources for and the
payment of general long-term 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 proprietary funds.
33
(1)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (continued)
Proprietary funds -- These funds are accounted for on the flow of economic
resources measurement focus and use the accrual basis of accounting. Und6r this
method, revenues are recorded when earned and expenses are recorded at the time
liabilities are 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 fired 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.
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 are used to
account for assets that the City holds for others in an agency capacity.
Account Groups -- The general fixed assets account group is used to account for
fixed assets not accounted for in proprietary funds. The 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.
(c) Budgetary Practices
The 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 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 City charter prohibits expending funds for which there is no legal
appropriation. All appropriations lapse at 'fiscal year end.
34
(1)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(c) Budgetary Practices (continued)
In May of each year, the City Manager submits to the City Council a proposed
budget for the fiscal year beginning July 1. Public 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.
The City Manager is responsible for Controlling 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 must 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 $3,253,000 in supplemental appropriations during the
year as follows: general fund $1,280,000; special revenue funds 1,972,000; debt
service funds $1,000.
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 and, 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) Cash and Investments
The City pools its cash resources, consisting of cash and investments, of all funds
for investment except for restricted funds generally held by an outside fiscal
agent. Cash amounts are reported net of outstanding wan'ants.
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.
35
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30,. 1998
(1)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Cash and Investments (continued)
The City has implemented GASB Statement No. 31, Accounting and Financial
Reporting for Certain Investments and for External Investment Pools, with the
1997/98 fiscal year. Implementation of this statement resulted in approximately
$104,000 of mark-to-market gains.
(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 and 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:
Improvements
Vehicles
Street 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.
(f) Claims and Judgments Payable
Claims and judgments payable are accrued when the liability is incurred and the
amount can be reasonably estimated. Claims and judgments payable are recorded
in an internal service fund for workers' compensation and long-term disability and
in the general fund for general liability.
(g) Compensated Absences
Vested accumulated vacation and 'sick leave is recorded as an expenditure/expense
and liability for all funds as the benefits accrue to employees.
36
(1)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h) Fund Equity
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 fired
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.
(i)
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
unsecured property taxes is March 1.
The City, in fiscal year 1993-94, adopted an altemative method of property tax
distribution (the "Teeter Plan"). Under this method, the City receives 100% of its
secured property 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.
(j) Interfund Transactions
Quasi-external transactions are accounted for as revenues, expenditures, or
expenses. Transactions constituting reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to
another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures/expenses in the fund that is reimbursed.
Nonrecurring or non routine permanent transfers of equity between funds are
reported as residual equity transfers. All other interfund transfers are reported as
operating transfers.
(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
account.
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(1)
(2)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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".
(a) Deposits
Deposits are covered by FDIC insurance, up to $100,000 with the balance above
that amount 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" recognized 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. 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.
38
(2)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
CASH AND INVESTMENTS (cominued)
(a) Deposits
The carrying amount of the City's demand accounts deposited with financial
institutions was $773,695 and the bank balance was $1,111,543 at June 30, 1998
as follows:
Carrying Bank % of
Amount Balance Portfolio
Demand Accounts
Insured by FDIC $ 241,000 $ 241,000 21.68%
Demand Accounts
Collaterized 532,695 870,543 78.32%
Total Deposits $773,695 $1,111,543 100.00%
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 department or agent in the City's name. Category 3
includes deposits which are uncollateralized, or collateralized but the pledged
securities are not held in the City's name.
Bank
Category 1 Category 3 Balance
Demand Accounts $ 206,353 $ 870,543 $1,076,896
Cash with Fiscal
Agent 34,647 - 0 - 34,647
Total Deposit $ 241,000 $ 870,543 $1,111,543
39
(2)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
CASH AND INVESTMENTS (continued)
(b) Investments
Investments made by the City are classified as to credit risk into three categories.
Category 1 includes securities insUred or registered, or held by the City or its
agent in the City's name. Category 2 includes securities uninsUred and
unregistered, and held by the counterparty's trust department or agent in the
City's name. Category 3 includes securities uninsUred and unregistered, and held
by the counterparty or by its trust department or agent, but not in the City's name.
The City's investment portfolio is stated at fair value based on quotes obtained at
June 30, 1998. 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 1 Category 2 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
$26,020,883 $ --- $26,020,883
6,475,122 --- 6,475,122
1,249,205 --- 1,249,205
--- 4,996,813 4,996,813
$33,745,210 $4,996,813 38,742,023
12,080,998
$50,823,021
40
(3)
(4)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
RELATED PARTY LOAN
As a term of employment, the City provided to an executive manager a $239,000 housing
relocation loan. This 30-year loan bears interest at six percent per annum and requires
monthly principal and interest payments. At June 30, 1998, the balance of the loan was
$214,730.
FIXED ASSETS
During the year, the City performed a complete inventory of all existing assets, including
verification of original costs of major facilities and parks. The result was a write-down of
General Fixed Assets in the amount of $12,542,167. In addition, the City entered into a
25 year operating lease of its water utility with San Jose Water Company. The Water
Fund was closed and $2,709,522 in fixed assets were transferred to the General Fixed
Assets Account Group.
A summary of changes in general fixed assets follows:
Balance
July 1, 1997 Additions
Land $52,064,866 ---
Buildings 13,955,234 ---
Improvements 26,724,008 2,061,929
other than
buildings
Equipment 1,613,664 33,579
$94,357,772 2,095,508
Adjustments/ Balance
Deletions Transfers June 30, 1998
959,588 53,024,454
(3,121,087) 10,834,147
(10,135,405) 18,650,532
(717,921) (245,263) 684,059
(717,921) (12,542,167) 83,193,192
41
(4)
(5)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
FIXED ASSETS (continued)
The following is a summary of proprietary fund fixed assets:
Enterprise
Land
Improvements
Equipment
Less: accumulated depreciation
Net fixed assets
Internal Service
$ 389,929 $ ---
481,533 ---
214,271 2,216,546
1,085,733 2,216,546
(276,399) (1,171,142)
$ 809,334 $1,045,404
LONG-TERM DEBT
The following is a summary of the changes in long-term debt:
Balance July 1, 1997
Retirements
Balance June 30, 1998
Certificates 1915 Act
of Participation Bonds Total
$53,160,000 $1,055,000 $54,215,000
(1,955,000) (155,000) (2,110,000)
$51,205,000 $ 900,000 $52,105,000
(a)
Cupertino Public Facilities Corporation Certificates of Participation
Certificates of participation debt instruments were issued by the Cupertino Public
Facilities Corporation to provide 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 the base rental payments to the trustee for
the benefit of the owners of the certificates of participation. The rental payments
are scheduled to be sufficient in both time and amount, to pay when due the
principal and interest of the certificates.
42
(5)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
LONG
(a)
TERM DEBT (continued)
Cupertino Public Facilities Corporation Certificates of Participation (continued)
In December 1992, the City issued $10,785,000 of Certificates of ParticipatiOn
with the effective interest rates ranging from 2.875% to 5.75% (the 1992
certificates) to provide for the advance refunding of the City Hall/Library
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 certificates 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 (difference between
the present values of the debt service payments on the old and new debt) of
$504,605.
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 from 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 trust 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 mount of defeased debt outstanding at June 30, 1998 was
$40,090,000.
43
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(5)
LONG TERM DEBT (continued)
(b) Cupertino Public Facilities Corporation Certificates of Participation (continued)
The related debt service requirements at June 30, 1998, follows:
Capital Improvement
Refunding A
Fiscal Year Ending June 30 Principal Interest Total
1999 $ 295,000 $ 515,782 $ 810,782
2000 315,000 500,664 815,664
2001 325,000 483,968 808,968
2002 345,000 466,094 811,094
2003 370,000 446,688 816,688
Thereafter 7,390,000 3,321,975 10,711,975
Total $9,040,000 $5,735,171 $14,775,171
The effective interest on these certificates averages 5.69%.
Wilson/Memorial
Refunding B
Fiscal Year Ending June 30 Principal Interest Total
1999 $ 675,000 $ 649,049 $ 1,324,049
2000 710,000 612,768 1,322,768
2001 750,000 573,008 1,323,008
2002 790,000 530,820 1,320,820
2003 840,000 485,396 1,325,396
Thereafter 7,035,000 1,778,690 8,813,690
Total $10,800,000 $4,629,731 $15,429,731
The effective interest rate on these certificates averages 5.98%.
Open Space
Refunding A
Fiscal Year Ending June 30 Principal Interest Total
1999 $ 1,075,000 $ 1,726,273 $ 2,801,273
2000 1,130,000 1,673,466 2,803,466
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
Thereafter 25,430,000 10,625,73 36,055,735
Total
$31,365,000 $18,682,574 $50,047,574
The effective interest rate on these certificates averages 5.62%.
(5)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
LONG-TERM DEBT (continued)
(b) 1915 Act Bonds
The City acts as agent for the property owners 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 event of default. The amount of unmamred bond
principal at June 30, 1998 was $900,000 as detailed below:
Vallco 74-3
Fiscal Year Ending June 30 Printer Interest Total
1999 $ 95,000 $29,565 $124,565
2000 100,000 22,630 122,630
2001 105,000 15,330 120,330
'2002 105,000 7,665 112,665
Total $405,000 $75,190 $480,190
The effective interest rate on this issue is 7.30%.
V~lco 74-4
Fiscal Year Ending June 30 Principal Interest Total
1999 $ 60,000 $14,235 $ 74,235
2000 65,000 9,855 74,855
2001 70,000 5,110 75,110
Total $195,000 $29,200 $224,200
The effective interest rate on this issue is 7.30%.
45
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(5)
LONG-TERM DEBT (continued)
(b) 1915 Act Bonds (continued)
Traffic Impact
Fiscal Year Ending June 30 Principal Interest Total
1999 $ 15,000 $ 21,744 $ 36,744
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
Thereafter 215,000 71,062 286,062
Total $300,000 $168,181 $468,181
(6)
(7)
The effective interest rate on this issue ranges from 7.0 to 7.5%.
UNRESERVED, DESIGNATED FUND BALANCES
The unreserved-designated fund balances include mounts 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:
1998 1997
Debt service
Self-insurance
Capital improvements
Civic center building
Street improvements
Open space-recreation
Mark-to-market
9,565,063 $ 9,565,063
1,000,000 1,000~000
1,035,000 1,035,000
2,361,495 2,361,495
600,000 600,000
301,000 301,000
82,254 ---
Total designated fund balances
$14,944,812
$14,862,558
DEFICIT FUND BALANCE
The deficit of $1,382,320 in the Capital Project Fund resulted fi'om the recognition of $2
million in estimated costs for remediation of an old waste disposal site. It is
management's intent to fund this deficit, and any additional costs, in the next fiscal year
with future resources.
46
(8)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
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, 1998, for each of these funds is as
follows:
Resource Blackberry Cupertino Recreation Senior
Water Recovery Farm Sports Center Programs Center Total
Operating
revenues $1,069,651 $2,100,480 $1,326,910 $811,811 $1,178,522 $378,957 $6,866,331
Depreciation 46,866 1,886 74,312 17,508 364 -- 140,936
Operating income
(loss) 493,064 382,412 (126,469) 104,788 180,883 (2,903) 1,031,775
Operating
transfers in (out) ..... (95,000) --- (100,000) 125,000 (70,000)
Net income (loss) 686,734 451,941 (199,789) 115,057 95,561 137,724 1,287,228
Property &
equipment
additions
20,796 .... 20,796
Net working
capital --- 1,420,042 (20,608) 258,223 356,840 289,367 2,303,864
Total assets · --- 1,670,724 1,025,803 318,599 390,191 301,456 3,706,773
Total equity -- 1,423,411 757,043 286,537 356,840 289,367 3,113,198
(9)
COMMITMENTS AND CONTINGENCIES
The City participates in a number of federal and state grant programs subject to financial
and compliance audits by the grantors or their representatives. Audits of certain grant
programs, including those for the year ended June 30, 1998, 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 material effect on the financial statements.
47
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(9)
COMMITMENTS AND CONTINGENCIES (continued)
The City is currently in remediation of an old waste disposal site on private property
within Cupertino. The City liability is due to the fact that it believes it disposed of a
portion of the waste at the site. The costs for cleanup will depend on the nature, chemical
composition and volume of material disposed at the site, as well as who disposed of the
waste. At June 30, the City's minimum exposure for clean up cost was estimated at $2
million, which has been reflected in the financial statements. Although costs may exceed
this estimate, they are not measurable at this time due to the results of the excavation and
testing.
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 rentals from such leases are as follows:
Fiscal year ending June 30
Amount
1999 $ 120,000
2000 120,000
2001 120,000
2002 120,000
2003 120,000
Thereafter 1,680,000
Total future minimum rentals
$2,280,000
The City also has various non-cancelable operating leases for copying equipment
expiring over the next three years. Lease expense for the fiscal year ending June 30, 1998
was $22,546. The future minimum rental payments from such leases are as follows:
Fiscal year ending June 30
Amount
1999 $22,546
2000 11,289
2001 5,139
Total future minimum rentals
$38,974
48
(10)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT
The City is self-insured for the first $100,000 of workers' comp. ensation 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 an
analysis performed of its workers' compensation program by an independent actuary
which resulted in a decrease in the City's reserve for unpaid claims of approximately
$94,000. There were no significant reductions in insurance coverage fi.om 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 thc 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:
Workers' General/
Compensation Auto
Claims liability, June 30, 1996
Incurred claims
Claim payments
Claims liability, June 30, 1997
Incurred claims
Claim payments/credits
$418,194 $63,053
101,618 173,408
(101,618) (35,755)
418,194 200,706
102,207 45,203
(196,426) (85,530)
Claims liability, June 30, 1998
$323,974 $160,379
(11) DEFERRED COMPENSATION PLAN
Change in Presentation
Due to the passage of the Small Business Job Protection Act (Act) of 1996,
governmental entities who have established deferred compensation plans under
Internal Revenue Code Section 457 are required to establish trusts to hold plan
assets for the exclusive benefit of plan participants and their beneficiaries. This
Act supersedes previous regulations, which required that plan assets remain the
property of the City until paid or made available to the participants, subject only
to the City's general creditors. In compliance with the new regulations, the City
established separate trusts during the fiscal year ending June 30, 1998 to hold plan
assets. The effect on the City was to remove plan assets and the related liability
fi.om the City's financial statements as of June 30, 1998.
49
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(12)
RESIDUAL EQUITY TRANSFER
On October 1, 1997, the City entered into a 25 year operating lease with San Jose Water
Company for the Cupertino Municipal Water Company. The agreement calls for San
Jose Water to operate and maintain the system in exchange for $6.8 million. Subsequent
to the lease, the Water Fund assets were transferred to the General Fund, the General
Fixed Assets Group, and the Equipment Fund.
A reconciliation of the residual equity transfer activity follows:
Water Enterprise Fund Residual Equity Transfers to:
(asset/liability)
General Fund: In Out
Cash
Settlement of advance to the General Fund
Basis difference:
Deferred Revenue (modified vs full accrual)
Fixed assets (transferred to GFAAG)
Contributed capital closed
Equipment Revolving Internal Service Fund
Fixed assets
$ 3,151,565 $ 3,151,565
6,800,000 6,800,000
0 (6,596,000)
0 1,215,297
0 (647,231)
$ 9,951,565
$ 35,914
$ 35,914
Equipment Revolving Internal Service Fund
Fixed assets
$ 35,914
35,914
Youth Sports Debt Service Fund Residual
Equity Transfer to the General Fund
Cash
3,772
$ 3,959,545
$ 3,772
50
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(13)
(14)
OTHER POST RETIREMENT BENEFITS
Permanent employees who retire under the City's retirement plan (PERS) 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 52
retirees participating in the plan as of June 30, 1998.
Retiree medical insurance premium expenses for the past five fiscal years ended June 30,
are as follows:
1994 $108,905
1995 124,500
1996 152,882
1997 147,791
1998 162,021
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 statutes within the Public Employees' Retirement Law. 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 fi.om the CalPERS Executive Office, 400 P
Street, Sacramento, CA 95814.
51
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 1998
(14)
DEFINED BENEFIT PENSION PLAN (continued)
(b) Funding Policy
Active plan members are required to contribute 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 determined remaining amounts necessary to fired the
benefits for its members. The actuarial methods and assumptions used are those
adopted by the CalPERS Board of Administration. The required employer
contribution rate for fiscal year 1997/98 was 8.2%. 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.
c) Annual Pension Cost:
For fiscal year 1997/98, the City's annual pension cost was $990,452 and the City
actually contributed $990,452. The required contribution for fiscal year 1997/98
was determined as part of the June 30, 1996 actuarial valuation using the entry
age normal'actuarial cost method with the contributions determined as a percent
of pay. The actuarial assumptions included a) 8.5% investment rate of return (net
of administrative expenses); b) projected salary increases that vary by duration of
service ranging from 4.5% to 14.95% for miscellaneous members and c) no cost-
of-living adjustment. Both (a) and (b) include an inflation component of 4.5%.
The actuarial value of the City of Cupertino's assets was determined using a
technique that smoothes the effect of short-term volatility in the market value of
investments over a two to five year period depending on the size of investment
gains an~or losses. City of Cupertino's overfunded pension benefit obligation is
being amortized as a level percentage of projected payroll on a closed basis. The
remaining amortization period at June 30, 1998 was 30 years.
Three year trend information for City of Cupertino:
Annual Percentage Net
Fiscal Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
6/30/96 941,880 100.0%
6/30/97 916,538 100.0%
6/30/98 990,452 100.0%
52
CITY OF CUPERTINO, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
FUNDED STATUS OF PLAN
(In thousands)
Valuation
Date (Most Actuarial Actuarial Unfunded/ Annual
recent data Value of Accrued (Overfunded) Funded Covered
available) Assets Liability Liability Ratio Payroll
UAAL
As a% of
Covered
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%)
Market value of assets available for benefits was $15,602, $18,712, and $22,165 for the fiscal
years 1995, 1996, and 1997 respectively.
53
GENERAL FUND
The General fund 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.
54
CITY OF CUPERTINO, CALIFORNIA
General Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and investments
Receivables:
Accounts
Loans
Other assets
Advances to other funds
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued sick leave and vacation
Deposits
Deferred revenue
Total liabilities
Fund balances:
Reserved for encumbrances
Reserved for loans receivable and advances
Reserved for affordable housing
Reserved for public access television
Unreserved:
Designated
Undesignated
Total fired balances
Total liabilities and fund balances
1998
36,443,983
1,483,198
1,135,256
33,487
39,095,924
772,332
1,241,820
624,899
52,367
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
1997
$ 22,001,473
1,264,508
1,147,741
10,612
62,867
$ 24,487,201
$ 1,071,893
1,101,519
469,050
771,011
3,413,473
151,535
1,210,608
816,475
1,512,330
14,862,558
2,520,222
21,073,728
$ 24,487,201
55
CITY OF CUPERTINO, CALIFORNIA
General Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances
For the Fiscal Years Ended June 30, 1998 and 1997
Revenues:
Taxes
Use of money and property
Intergovernmental
Charges for services
Fines and forfeitures
Other revenue
1998
18,138,157
2,042,599
2,549,186
2,039,479
241,293
968,733
Total revenues
25,979,447
Expenditures:
Current:
Administration
Law enforcement
Public Information
Administrative services
Recreation services
Community development
Public works
856,836
4,393,319
590,667
1,991,328
1,164,822
1,701,259
6,845,175
Total expenditures
17,543,406
8,436,041
Excess of revenues over (under) expenditures
Other fmancing sources (uses):
Operating transfers in
Operating transfers out
2,400,500
(5,461,100)
Total other financing sources (uses)
(3,06O,6OO)
5,375,441
21,073,728
9,955,337
Excess (defiency) of revenues
over (under) expenditures and
other financing sources (uses)
Fund balances
Residual equity transfers
Fund balances, end of year
$ 36,404,506
1997
16,673,756
1,723,196
1,958,387
1,746,732
205,366
766,619
23,074,056
854,531
4,118,027
537,268
1,750,575
1,121,666
1,485,921
5,476,640
15,344,628
7,729,428
1,350,006
(6,999,811)
(5,649,805)
2,079,623
18,994,105
21,073,728
56
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are 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 fired is
restricted exclusively for street and road purposes including related engineering and
administrative expenses.
Housing Development - Accounts for the Federal Housing and Community Development
Grant Program activities 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 training course in the community.
57
Assets
Cash and investments
Accounts receivable
Loans receivable
Total assets
CITY OF CUPERTINO, CALIFORNIA
Special Revenue Funds
Combining Balance Sheet
June 30, 1998
(With Comparative Totals for June 30, 1997)
Storm Park
Drain Dedication
$ 1,492,481 $ 659,702
$ 1,492,481 $ 659,702
Environmental
Management
Gas
Tax
$ 377,865 $ 1,822,882
880 679
$ 378,745
$ 1,823,562
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued sick leave and vacation
Deferred revenue
Total liabilities
Fund balances:
Reserved for encumbrances
Reserved for loans receivable
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
$ 11,403 $
11,403
50,700
3,378
1,427,000
1,481,078
$ 1,492,481
1,457
658,245
659,702
$ 3,915
21,479
25,394
855
352,496
353,351
$ 659,702 $ 378,745
$ 6,218
6,218
267,554
4,069
1,545,721
1,817,344
$ 1,823,562
58
Housing
Development
280,065 $
18,639
1,705,266
2,003,970 $
Leadership
Cupertino
985 $
Totals
1998 1997
4,633,980 $ 5,538,561
20,199 47,380
1,705,266 1,768,765
985 $ 6,359,445 $ 7,354,706
13,668 $
165
576,299
35,204 $ 207,777
21,644 20,860
576,299 635,996
590,132
633,147 864,633
1,128,967
634
284,237
1,413,838
2,003,970 $
318,254 8,223
.1,128,967 1,132,769
- 10,393 -
985 4,268,684 5,349,081
985 5,726,298 6,490,073
985 $ 6,359,445 $ 7,354,706
59
CITY OF CUPERTINO, CALIFORNIA
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Storm Park
Drain Dedication
Revenues:
Taxes
Use of money and property
Intergovernmental
Charges for services
Other revenue
Total revenues
Expenditures:
Community development
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other £mancing sources (uses):
Operating transfers in
Operating transfers out
Net other £mancing sources (uses)
Excess (deficiency) of revenues
over (under) expenditures and
other £mancing sources (uses)
Fund balances, beginning of year
Fund balances, end of year
Environmental
Management
$ - $ 2,066,535 $
85,273 75,080
137,004
14,060
326,897
222,277 2,141,615 340,957
155,095
155,095
342,697
342,697
67,182 2,141,615 (1,740)
(2,197,323)
(2,197,323)
67,182 (55,708) (1,740)
1,413,896 715,410 355,091
$ 1,481,078 $ 659,702 $
353,351
60
Gas
Tax
109,749
890,150
999,899
1,859,922
1,859,922
(860,023)
35,000
35,000
Housing
Development
135,539
53,584
532
189,655
139,126
139,126
50,529
Leadership
Cupertino
- $
11,090
11,090
10,105
10,105
985
Totals
1998
1997
2,066,535 $
419,701
943,734
326,897
148,626
3,905,493
1,349,133
521,238
945,493
330,905
60
3,146,829
149,231
2,202,619
155,095
2,506,945
122,089
1,283,184
4,974
1,410,247
1,398,548
1,736,582
35,000
(2,197,323)
(2,162,323)
26,750
(3,197,132)
(3,170,382)
(825,023)
2,642,367
1,817,344 $
50,529
1,363,309
1,413,838 $
985
985 $
(763,775)
6,490,073
5,726,298 $
(1,433,800)
7,923,873
6,490,073
61
CITY OF CUPERTINO, CALIFORNIA
Storm Drain Special Revenue Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities and fund balances
· Liabilities:
Accounts payable and accruals
Fund balances:
Reserved for encumbrances
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
1998
1,492,481
1,492,481
11,403
50,700
3,378
1,427,000
1,481,078
1,492,481
1997
1,409,545
4,351
1,413,896
1,413,896
1,413,896
1,413,896
62
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, 1998
(With comparative totals for the fiscal year ended'June 30, 1997)
Amended
Budget
1998
Actual
Revenues: Taxes
Use of money and property
Other revenue
Total revenues
Expenditures:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues
over (under) expenditures and
other £mancing sources (uses)
Fund balances, beginning of year
Fund balances, end of year
Variance
Favorable
(Unfavorable)
- $ $ -
50,000 85,273 35,273
135,000 137,004 2,004
1997
Actual
50,437
76,859
185,000 222,277 37,277 127,296
- - - 23,500
280,800 155,095 125,705 -
280,800 155,095 125,705 23,500
(95,800) 67,182 162,982 103,796
(95,800)
1,413,896
67,182
1,413,896
162,982
1,318,096 $ 1,481,078 $ 162,982 $
(26,750)
(26,750)
77,046
1,336,850
1,413,896
63
Assets
Cash and investments
Accounts receivable
Total assets
Fund balances:
Reserved for encumbrances
Unreserved:
Designated
Undesignated
· Total fund balances
Total liabilities and fund balances
CITY OF CUPERTINO, CALIFORNIA
Park Dedication Special Revenue Fund
Comparative Balance Sheets
June 30, 1998 and 1997
1998
659,702
659,702
1,457
658,245
659,702
659,702
1997
7i3,208
2,202
715,410
1,574
713,836
715,410
715,410
64
CITY OF CUPERTINO, CALIFORNIA
Park Dedication Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Revenues:
Taxes
Use of money and property
Total revenues
Expenditures:
Capital outlay
Total expenditures
Excess of revenues over expenditures
Other £mancing sources (uses):
Operating transfers out
Excess (deficiency) of revenues
over (under) expenditures and
other f'mancmg sources (uses)
Fund balances, beginning of year
Fund balances, end of year
1998
Amended
Budget
Actual
Variance
Favorable
(Unfavorable)
$ 2,100,000 $ 2,066,535
75,080
19~7
Actual
$ (33,465) $ 1,298,696
75,080 100,878
2,100,000 2,141,615 41,615
1,399,574
4,974
4,974
2,100,000 2,141,615 41,615 1,394,600
'41,615
$ 41,615
(2,197,323) (2,197,323)
(97,323) (55,708)
715,410 715,410
$ 618,087 $ 659,702
(1,950,000)
(555,400)
1,270,810
$ 715,410
65
CITY OF CUPERTINO, CALIFORNIA
Environmental Management Special Revenue Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and investments
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:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
1998
$ 377,865
880
$ 378,745
$ 3,915
21,479
25,394
855
352,496
353,351
$ 378,745
1997
381,964
.1,619
383,583
9,455
19,037
28,492
6,649
348,442
355,091
383,583
66
ReveHues:
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, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Amended
Budget
1998
Actual
Variance
Favorable
(Unfavorable)
8,000 $ 14,060 $ 6,060
381,000 326,897 (54,103)
389,000
448,279
448,279
340,957
342,697
342,697
(48,043)
105,582
105,582
(59,279)
355,091
295,812
(1,740)
355,091
$ 353,351
57,539
$ 57,539 $
1997
Actual
14,512
330,905
345,417
269,926
269,926
75,491
279,600
355,091
67
CITY OF CUPERTINO, CALIFORNIA
Gas Tax Special Revenue Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Fund balances:
Reserved for encumbrances
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
1998
$ 1,822,882 $
679
$ 1,823,562 $
$ 6,218 $
267,554
4,069
1,545,721
1,817,344
$ 1,823,562
1997
2,821,789
8,516
2,830,305
187,938
2,642,367
2,642,367
2,830,305
68
CITY OF CUPERTINO, CALIFORNIA
Gas Tax Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended 'June 30, 1997)
1998
Variance
Amended Favorable
Budget Actual (Unfavorable)
Revenues:
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 transfers in
Total 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
$ 100,000 $ 109,749 $ 9,749
883,000 890,150 7,150
983,000 999,899 16,899
2,120,703 1,859,922 260,781
795,892 795,892
2,916,595 1,859,922 1,056,673
1997
Actual
144,225
884,912
1,029,137
989,758
989,758
(1,933,595) (860,023) 1,073,572 39,379
35,000 35,000
35,000 35,000
(1,898,595) (825,023) 1,073,572
2,642,367 2,642,367
743,772 $ 1,817,344 $ 1,073,572
26,750
26,750
66,129
2,576,238
$ 2,642,367
69
CITY OF CUPERTINO, CALIFORNIA
Housing Development Special Revenue Fund
Comparative Balance Sheets
June 30, 1998 and 1997
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:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
1998
$ 280,065
18,639
1,705,266
$ 2,003,970
13,668
165
576,299
590,132
1,128,967
634
284,237
1,413,838
2,003,970
1997
$ 215,o55
30,692
1,768,765
$ 2,011,512
10,384
1,823
635,996
648,203
1,132,769
230,540
1,363,309
2,011,512
70
Revenues:
Use of money and property
Intergovernmental
Other revenue
Total revenues
Expenditures:
Community development
Total expenditures
Excess (deficency) of revenues
over (under) expenditures
Excess (deficiency) of revenues
over (under) expenditures and
other fmancing sources (uses)
Fund balances, beginni~g of year
Fund balances, end of year
CITY OF CUPERTINO, CALIFORNIA
Housing Development Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Amended
Budget
Acmal
Variance
Favorable
(Unfavorable)
104,000 $ 135,539 $ 31,539
48,000 53,584 5,584
- 532 532
1997
Actual
141,449
60,581
60
152,000 189,655 37,655 202,090
147,720 139,126 8,594 122,089
147,720 139,126 8,594 122,089
4,280 50,529 46,249 80,001
46,249
$ 46,249 $
4,280 50,529
1,363,309 1,363,309
1,367,589 $ 1,413,838
80,001
1,283,308
1,363,309
71
CITY OF CUPERTINO, CALIFORNIA
Leadership Cupertino Special Revenue Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and investments
Total assets
Fund balances:
Unreserved:
Undesignated
Total fund balances
1998
$ 985
$ 985
1997
$
$
$ 985 $ -
$ 985 $ -
72
Revenues:
Other revenue
Total revenues
Expenditures:
Community development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances, beginning of year
Fund balances, end of year
CITY OF CUPERTINO, 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, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Amended
Budget
Actual
Variance
Favorable
(Unfavorable)
10,375 $ 11,090 $ 715
10,375 11,090 715
10,375 10,105 270
10,375 10,105 270
985 985
985 985
1997
Acmal
73
NOTES
74
DEB T SER VICE FtfNDS
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.
Youth Sports - Accounts for the payment of principal and interest on debt related to the
renovation of nine youth sports fields in the City.
75
Assets
Cash and investments
Assessments receivable
Total assets
CITY OF CUPERTINO, CALIFORNIA
Debt Service Funds
Combining Balance Sheet
June 30, 1998
(With Comparative Totals for June 30, 1997)
Public Traffic Youth
Facilities Corp. Impact Sports
$ 4,999,340$ 75,721
- 285,000
$ 4,999,340 $ 360,721
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Deferred revenue
Total liabilities
Fund balances:
Reserved for debt service
Total liabilities and fund balances
4,999,340
$ $ -
285,000 -
285,000
75,721
$ 4,999,340 $ 360,721 $ -
76
Vallco Vallco. Totals
AD 74-3 AD 74-4 1998
204,660 $ 69,635 $ 5,349,356 $
330,000 135,000 750,000
$ 534,660 $ 204,635 $ 6,099,356 $
1997
5,337,959
925,000
6,262,959
330,000 135,000 750,000
330,000 135,000 750,000
204,660 69,635 5,349,356
$ 1,505
925,000
926,505
5,336,454
6,262,959
$ 534,660 $ 204,635 $ 6,099,356 $
77
CITY OF CUPERTINO, CALIFORNIA
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Revenues:
Taxes
Use of money and property
Total revenues
Expenditures:
Principal
Interest and fiscal charges
· Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources:
Operating transfers in
Excess (deficiency) of revenues and other
fmancing sources over (under) expenditures
Fund balances, begfinning of year
Residual equity transfer
Public Traffic Youth Vallco
Facilities Corp. Impact Sports AD 74-3
Fund balances, end of year
$ - $ 37,287 $ 313,068 937
313,068 38,224 -
1,955,000 15,000 -
3,009,957 23,822 -
4,964,957 38,822 -
(4,651,889) (598) -
4,653,000 - -
1,111 (598) -
4,998,229 76,319 3,772
- - (3,772)
$ 4,999,340 $ 75,721 $
$ 131,390
131,390
85,000
32,944
117,944
13,446
13,446
191,214
$ 204,660
78
Vallco
AD 74-4
74,234 $
74,234
55,000
16,519
71,519
2,715
2,715
66,920
Totals
1998
242,911 $
314,005
556,916
2,110,000
3,083,242
5,193,242
(4,636,326i
4,653,000
16,674
5,336,454
(3,772)
1997
240,095
344,447
584,542
3,835,000
3,290,413
7,125,413
(6,540,871)
6,560,000
19,129
5,317,325
5,336,454
69,635 $
5,349,356 $
79
CITY OF CUPERTINO, CALIFORNIA
Public Facilities Corporation Debt Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and invesmaents
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Fund balances:
Reserved for debt service
Total liabilities and fund balances
1998
4,999,340
4,999,340
4,999,340
1997
4,999,734
1,505
4,998,229
4,999,734
80
Revenues:
Use of money and property
Total revenues
.Expenditures:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
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, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Amended
Budget
Acmal
Variance
Favorable
(Unfavorable)
$ 325,000 $ 313,068 $
(11,932)
1997
Actual
317,602
325,000 313,068 (11,932) 317,602
1,955,000 1,955,000
3,017,410 3,009,957
4,972,410 4,964,957
(4,647,410) (4,651,889)
4,653,000 4,653,000
7,453
7,453
(4,479)
(4,479)
5,590 1,111
4,998,229 4,998,229
1,865,000
3,108,175
4,973,175
(4,655,573)
4,659,000
5,003,819 $ 4,999,340
3,427
4,994,802
$ (4,479) $ 4,998,229
81
CITY OF CUPERTINO, CALIFORNIA
Traffic Impact Debt Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and invesUncnts
Assessments receivable
Total assets
Liabilities and fund balances
Liabilities:
Deferred revenue
Fund balances:
Reserved for debt service
Total liabilities and fund balances
1998
75,721
285,000
360,721
285,000
75,721
360,721
1997
$ 76,319
300,000
$ 376,319
$ 300,000
76,319
$ 376,319
82
CITY OF CUPERTINO, CALIFORNIA
Traffic Impact Debt Service Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Variance
Amended Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes
Use of money and property
Total revenues
Expenditures:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances, beginning of year
Fund balances, end of year
$
$
15,000 $ 37,287 $ 22,287
23,000 937 (22,063)
1997
Actual
38,338
1,111
38,000 38,224 224 39,449
15,000 15,000 15,000
23,920 23,822 98 24,871
38,920 38,822 98 39,871
(920) (598)
76,319 76,319
75,399 $ 75,721 $
322
(422)
76,741
322 $ 76,319
83
CITY OF CUPERTINO, CALIFORNIA
Youth Sports Debt Service Fund
Comparative Balance Sheets
· June 30, 1998 and 1997
Assets
Cash and investments
1998
1997
3,772
Fund balances:
Reserved for debt service
3,772
84
CITY OF CUPERTINO, CALIFORNIA
Youth Sports Debt Service Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Amended
Budget
Acmal
Variance
Favorable
(Unfavorable)
Revenues:
Use of money and property
$ $ $ $
Expenditures:
Principal
Interest and fiscal charges
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
Residual equity transfer
3,772 3,772
(3,772)
(3,772)
Fund balances, end of year
3,772 $
(3,772) $
1997
Actual
25,734
1,825,000
98,264
1,923,264
(1,897,530)
1,901,000
3,470
302
3,772
85
Assets
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
Vallco 74-3 Debt Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
1998
$ 204,660
330,000
$ 534,660
$ 330,000
204,660
$ 534,660
$
$
$
$
1997
191,214
430,000
621,214
430,000
191,214
621,214
86
Revenues:
Taxes
Use of money and property
Total revenues
Expenditures:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances, beginnin§ of year
Fund balances, end of year
CITY OF CUPERTINO, CALIFORNIA
Vallco AD 74=3 Debt Service Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances o Budget and Actual
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Amended
Budget
Acmal
Variance
Favorable
(Unfavorable)
$ 100,000
33,000
133,000
85,000
36,020
121,020
11,980
191,214
$ 203,194
$ 131,390
131,390
$ 31,390
(33,000)
(1,610)
85,000
32,944
117,944
3,076
3,076
13,446
191,214
$ 204,660 $
1,466
1,466 $
1997
Actual
128,142
128,142
80,000
38,855
118,855
9,287
181,927
191,214
CITY OF CUPERTINO, CALIFORNIA
Vallco 74-4 Debt Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Cash and investments
Assessments receivable
Total assets
Liabilities and fund balances
Liabilities:
Deferred revenue
Fund balances:
Reserved for debt service
Total liabilities and fund balance§
1998
$ 69,635
135,000
$ 204,635
$ 135,000
69,635
$ 204,635
1997
$ 66,920
195,000
$ 261,920
$ 195,000
66,920
$ 261,920
88
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, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
1998
Actual
Amended
Budget
Variance
Favorable
(Unfavorable)
Revenues:
Taxes $ 60,000 $ 74,234 $ 14,234
· Use of money and property 16,000 (16,000)
Total revenues 76,000 74,234 (1,766)
Expenditures:
Principal 55,000 55,000
Interest and fiscal charges 18,450 16,519 1,931
Total expenditures 73,450 71,519 1,931
Excess (deficiency) of revenues over
(under) expenditures 2,550 2,715 165
Fund balances, beginning of year 66,920 66,920 -
Fund balances, end of year $ 69,470 $ 69,635 $ 165
1997
Actual
$ 73,615
73,615
50,000
20,248
70,248
3,367
63,553
$ 66,920
89
NOTES
90
CAPITAL PROJECT 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 improvements 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.
91
CITY OF CUPERTINO, CALIFORNIA
Capital Projects Funds
Combining Balance Sheet
June 30, 1998
(With Comparative Totals for June 30, 1997)
Assets
Cash and investments
Accounts receivable
Loans receivable
Total assets
Capital
Improvement
Projects
$ 621,656
10,206
$ 631,862
Stevens
Creek
Boulevard
$ 234,113
$ 234,113
Creekside
Park
$ 244,834
$ 244,834
Liabilities and fund balances-
Liabilities:
Accounts payable and accruals
Deferred revenue
Total liabilities
$ 2,014,182
2,014,182
$ 159 $ 15
159
15
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
321,973
(1,704,293)
(1,382,320)
$ 631,862
1,810
232,144
233,954
$ 234,113
5,200
239,619
244,819
$ 244,834
92
Total
1998
$ 1,100,603 $
10,206
1997
2,818,104
529
29,095
$ 1,110,809 $ 2,847,728
$ 2,014,356 $
2,014,356
714
29,095
29,809
328,983
(1,232,530)
1,738,517
1,079,402
(903,547) 2,817,919
$ 1,110,809 2,847,728
Revenues:
Use of money and property
Intergovernmental
Other
Total revenues
Expenditures:
· Capital outlay
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Net other financing sources (uses)
Excess (deficiency) of revenues
over (under) expenditures and
other f'mancing sources (uses)
Fund balances, beginning of year
CITY OF CUPERTINO, CALIFORNIA
Capital Projects Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Capital Stevens
Improvement Creek
Projects Boulevard
$ 136 $
9,676
29,095
38,907
2,144,343
74,680
(2,105,436)
(74,680)
175,000
(25,500)
149,500
150,000
150,000
(1,955,936)
573,616
75,320
158,634
Fund balances, end of year
$ (1,382,320) $
233,954
Creekside
Park
100,000
100,000
2,038,173
(1,938,173)
97,323
97,323
(1,840,850)
2,085,669
244,819
94
Totals
1998
1997
136 $
109,676
29,095
138,907
2,836
26,000
28,836
4,257,196
1,229,191
(4,118,289)
(1,200,355)
422,323
(25,500)
396,823
2,065,693
2,065,693
(3,721,466)
2,817,919
865,338
1,952,581
(903,547) $
2,817,919
95
CITY OF CUPERTINO, CALIFORNIA
Capital Improvement Projects Capital Projects Fund
Comparative Balance Sheets
. June 30, 1998 and 1997
Assets
Cash and investments
Accounts receivable
Loans receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Deferred revenue
Total liabilities
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
1998
$ 621,656 $
10,206
$ 631,862 $
$ 2,014,182
2,014,182
321,973
(1,704,293)
(1,382,320)
$ 631,862
1997
~573,801
529
29,095
603,425
714
29,095
29,809
25,990
547,626
573,616
603,425
96
Revenues:
Use of money and property
Intergovernmental
Other
Total revenues
Expenditures:
Capital outlay
Excess (deficiency) of revenues
over (under) expenditures
Other financing somces:
Operating transfers in
Operating transfers out
Net other f'mancing 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
Capital Improvement Projects Capital Projects Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 1998 and 1997
1998
$ 136
9,676
29,095
38,907
2,144,343
(2,105,436)
175,000
(25,500)
149,500
(1,955,936)
573,616
$ (1,382,320)
1997
2,836
26,000
28,836
318,195
(289,359)
130,826
130,826
(158,533)
732,149
573,616
97
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, 1998 and 1997
1998
$ 234,113
$ 159 $
1,810
232,144
233,954
$ 234,113
1997
158,634
29,037
129,597
158,634
158,634
98
CITY OF CUPERTINO, CALIFORNIA
Stevens Creek Boulevard Capital Projects Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 1998 and 1997
Expenditures:
Capital outlay
Other financing sources: Operating transfers in
Excess (deficiency) of other £mancing
sources over (under) expenditures
Fund balancesl beginning of year
Fund balances, end of year
1998
74,680
150,000
75,320
158,634
233,954
1997
233,810
14,485
(219,325)
377,959
158,634
CITY OF CUPERTINO, CALIFORNIA
Creekside Park Capital Projects Fund
Comparative Balance Sheets
June 30, 1998 and 1997
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
1998
$ 244,834
$ 15 $
5,200
239,619
244,819
$ 244,834
1997
2,085,669
1,683,490
402,179
2,085,669
2,085,669
100
Revenues:
Intergovenmental
CITY OF CUPERTINO, CALIFORNIA
Creekside Park Capital Project Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 1998 and 1997
1998
$ 100,000
1997
Expenditures:
Capital outlay
Excess (defiency)of revenues
over (under) expenditures
Other £mancing sources: Operating transfers in
Excess (deficiency) of other financing
sources over (under) expenditures
Fund balances, beginning of year
Fund balances, end of year
2,038,173
(1,938,173)
97,323
(1,840,850)
2,085,669
$ 244,819
677,186
(677,186)
1,920,382
1,243,196
842,473
$ 2,085,669
101
NOTES
102
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.
Water - Accounts for sales, operation and maintenance of the water utility. This fund was
closed during the year as a result of a 25 year lease of the enterprise funds fixed assets to
the San Jose Water Company.
Resource Recovery - Accounts for activity related to the collection and disposal of solid
waste. A private company has been issued an exclusive fi:anchise 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.
103
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
Accrued sick leave and vacation
Deposits
Total current liabilities
Advances from other funds
Total liabilities
Equity:
Contributed capital
Retained earnings
Total equity
Total liabilities and equity
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Balance Sheet
. June 30, 1998
(With Comparative Totals for June 30, 1997)
Resource
· Water Recovery
$ - $ 1,378,606 $
- 288,749
1,667,355
3,369
$ - $ 1,670,724 $
$ - $ 247,313 $
247,313
247,313
1,423,411
1,423,411
1,670,724
Blackberry
Farm
246,961
1,191
248,152
777,651
1,025,803
124,681
74,348
69,731
268,760
268,760
757,043
757,043
1,025,803
104 ,
Cupertino
Sports
Center
$ 287,535 $
2,750
290,285
28,314
Recreation
Programs
390,191 $
390,191
Senior
Center
301,456 $
301,456
Tomls
1998
2,604,749 $
292,690
1997
4,473,627
563,634
5,037,261
2,196,678
7,233,939
2,897,439
809,334
$ 318,599 $ 390,191 $ 301,456 $ 3,706,773 $
$ 28,926 $
3,136
33,351 $
2,499 $
9,590
436,770 $
87,074
69,731
32,062 33,351 12,089 593,575
32,062 33,351 12,089 593,575
286,537 356,840 289,367 3,113,198
286,537 356,840 289,367 3,113,198
$ 318,599 $ 390,191 $ 301,456 $ 3,706,773 $
646,333
91,993
738,326
62,867
801,193
647,231
5,785,515
6,432,746
7,233,939
105
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Operating revenues:
Charges for services
Other
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Insurance
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 transfers:
Operating transfers in
Operating transfers out
Net operating transfers
Net income (loss)
Retained earnings, beginning of year
Residual equity transfer
Retained earnings, end of year
Resource Blackberry
Water Recovery Farm
$ 738,279 $ 2,100,480
331,372
$ 1,326,910
1,069,651 2,100,480 1,326,910
19,725 83,958
478,427 36,944
31,569 1,595,280
46,866 1,886
576,587 1,718,068
493,064 382,412
34,750 -
173,259 69,713
(14,339) (184)
193,670
686,734
69,529
451,941
451,941
971,470
$ 1,423,411 5
686,734
3,272,811
(3,959,545)
583,314
649,916
145,837
74,312
1,453,379
(126,469)
22,771
(1,091)
21,680
(104,789)
80,000
(175,000)
(95,000)
(199,789)
956,832
757,043
106
Cupertino
Sports
Center
Recreation
Programs
Senior
Center
Totals
1998
1997
811,811 $
811,811
1,178,522 $
1,178,522
378,957 $
378,957
6,534,959 $
331,372
6,866,331
7,934,541
7,934,541
137,596
104,951
446,968
17,508
707,023
104,788
10,572
(303)
10,269
115,057
115,0~7
171,480
286,537 $
332,210
142,438
522,627
364
997,639
180,883
14,757
(79)
14,678
195,561
(100,000)
(lOO,OOO)
95,561
261,279
356,840 $
45,568
335,852
440
381,860
(2,903)
15,627
15,627
12,724
125,000
125,000
137,724
151,643
289,367 $
107
1,202,371
1,748,528
2,742,721
140,936
5,834,556
1,031,775
34,750
306,699
(15,996)
325,453
1,357,228
205,000
(275,000)
(7o,ooo).
1,287,228
5,785,515
(3,959,545)
3,113,198 $
1,390,587
2,206,291
2,822,741
10,284
198,175
6,628,078
1,306,463
45,144
213,670
250
259,064
1,565,527
120,000
(100,006)
19,994
1,585,521
4,199,994
5,785,515
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Water
Resource
Recovery
Blackberry
Farm
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers
for goods and services
Cash payments to employees
1,143,387 $
(714,518)
(19,725)
2,089,981
(1,619,733)
(83,958)
1,308,263
(734,310)
(583,314)
Net cash provided (used) by operating activities
409,144
386,290
(9,361)
Cash flows from noncapital financing activities:
. Repayment of interfund advances
Operating transfers in
Operating transfers out
Residual equity transfer
(3,151,565)
(62,867)
80,000
(175,000)
Net cash provided (used) by
noncapital financing activities
(3,151,565) (62,867) (95,000)
Cash flows from capital and related
financing activities:
Connection fees
Purchase of fixed assets
34,750
(20,796)
(20,796)
22,771
22,771
(102,386)
349,347
Net cash provided (used) by capital
and related financing activities
34,750
173,259 69,713
173,259 69,713
(2,534,412) 393,136
2,534,412 985,470
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
$ - $ 1,378,606 $
246,961
In addition to a cash residual equity transfer of $3,151,565 to the General Fund, the Water Fund was closed with a
transfer of the remaining fixed assets to the General Fixed Asset Fund. The net book value at the time of the residual
equity transfer was $1,215,297 with fixed assets with an original cost of $2,709,522.
108
Cupertino
Sports
Center
Recreation
Programs
Senior
Center
Totals
1998
1997
810,191 $
(529,262)
(137,596)
143,333
1,179,735 $
(682,196)
(332,210)
165,329
(100,000)
(100,000)
379,453 $
(333,719)
(45,568)
166
125,000
125,000
6,911,010 $
(4,613,738)
(1,202,371)
1,094,901
(62,867)
205,000
(275,000)
(3,151,565)
(3,284,432)
7,883,972
(5,029,678)
(1,390,587)
1,463,707
(153,728)
120,000
(100,006)
(133,734)
34,750
(20,796)
45,144
(420,403)
13,954
306,699
306,699
(1,868,878)
4,473,627
(375,259)
213,670
213,670
1,168,384
3,305,243
10,572
10,572
153,905
133,630
287,535 $
14,757
14,757
80,086
310,105
390,191 $
15,627
15,627
140,793
160,663
301,456 $
2,604,749 $
4,473,627
(continued)
109
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended'June 30, 1997)
Water
Resource
Recovery
Blackberry
Farm
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 accmals
Increase (decrease) in deposits
Total adjustments
Net cash provided (used) by operating activities
$ 493,064 $ 382,412
46,866 1,886
(204,000)
277,736 (10,499)
(204,522) 12,491
$ (126,469)
74,312
3,615
61,443
(22,262)
(83,920) 3,878 117,108
409,144 $ 386,290 $
(9,361)
110
Cupertino
Sports
Center
Recreation
Programs
Senior
Center
Totals
1998 1997
104,788 $
180,883 $
(2,903) $ 1,031,775 $ 1,306,463
17,508
(1,620)
22,657
364
1,213
(17,131)
496
2,573
140,936 198,175
(204,000) -
270,941 (43,767)
(122,489) 9,638
(22,262) (6,802)
38,545 (15,554) 3,069 63,126 157,244
143,333 $
166 $ 1,094,901 $ 1,463,707
165,329 $
111
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
Equity:
Contributed capital
Retained earnings
Total equity
Total liabilities and equity
CITY OF CUPERTINO, CALIFORNIA
Water Enterprise Fund
Comparative Balance Sheets
June 30, 1998 and 1997
1998
1997
2,534,412
277,737
2,812,149
1,312,415
4,124,564
204,522
647,231
3,272,811
3,920,042
4,124,564
112
CITY OF CUPERTINO, CALIFORNIA
Water Enterprise Fund
Comparative Statements of Revenues, Expenses
and Changes in Retained Earnings
For the Fiscal Years Ended June 30, 1998 and 1997
Operating revenues:
Charges for services
Other
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
· Contractual services
Insurance
Depreciation
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Connection fees
Interest income
Sale of property
Total nonoperatmg revenues (expenses)
Net income (loss)
Retained earnings, beginning of year
Residual Equity Transfer
Retained earnings, end of year
1998
$ 738,279
331,372
1,069,651
19,725
478,427
31,569
46,866
576,587
493,064
34,750
173,259
(14,339)
193,670
686,734
3,272,811
(3,959,545)
1997
$ 2,194,823
2,194,823
236,740
1,452,895
67,983
10,284
95,933
1,863,835
330,988
45,144
131,814
176,958
507,946
2,764,865
$ 3,272,811
113
CITY OF CUPERTINO, CALIFORNIA
Water Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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:
Residual equity transfer
Cash flows from capital and related
financing activities:
Connection fees
Purchase of fixed assets
Net cash provided (used) by capital 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
1998
$ 1,143,387
(714,518)
(19,725)
409,144
(3,151,565)
34,750
34,750
173,259
(2,534,412)
2,534,412
1997
2,153,057
(1,527,044)
(236,740)
389,273
45,144
(5,393)
39,751
131,814
560,838
1,973,574
2,534,412
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
$ 493,064 $ 330,988
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
Amortization of lease revenue
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
46,866 95,933
(204,000)
277,736 (41,766)
(204,522) 4,118
Total adjustments (83,920) 58,285
Net cash provided (used) by operating activities
$ 409,144 $ 389,273
In addition to a cash residual equity .transfer of $3,151,565 to the General Fund, the Water Fund was closed with a
transfer of the remaining fixed assets to the General Fixed Asset Fund. The net book value at the time of the residual
equity transfer was $1,215,297 with fixed assets with an original cost of $2,709,522.
114
CITY OF CUPERTINO, CALIFORNIA
Resource Recovery Enterprise Fund
Comparative Balance Sheets
June 30, 1998 and 1997
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
Advances from other funds
Total liabilities
Equity:
Retained earnings
Total liabilities and equity
1998
$ 1,378,606
288,749
1,667,355
3,369
$ 1,670,724
$ 247,313
247,313
1,423,411
$ 1,670,724
$
$
1997
985,470
278,251
1,263,721
5,438
1,269,159
234,822
62,867
297,689
971,470
1,269,159
115
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, 1998 and 1997
Operating revenues:
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 nonoperating revenues (expenses)
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
1998
$ 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
1997
$ 2,052,435
85,685
37,321
1,614,497
1,981
1,739,484
.312,951
48,157
48,157
361,108
610,362
$ 971,470
116
CITY OF CUPERTINO, CALIFORNIA
Resource Recovery Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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:
Repayment of interfimd 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
1998
$ 2,089,981
(1,619,733)
(83,958)
386,290
(62,867)
69,713
393,136
985,470
$ 1,378,606
1997
2~56,064
(1,628,329)
(85,685)
342,050
(116,728)
48,157
273,479
711,991
985,470
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
Increase (decrease) in accounts payable and accruals
Total adjustments
Net cash provided (used) by operating activities
382,412
1,886
(10,499)
12,491
3,878
386,290
312,951
1,981
3,629
23,489
29,099
342,050
117
CITY OF CUPERTINO, CALIFORNIA
Blackberry Farm Enterprise Fund
Comparative Balance Sheets
June 30, 1998 and 1997
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
Deposits
Total current liabilities
Equity:
Retained earnings
Total liabilities and equity
1998
1997
$ 246,961 $ 349,347
1,191 4,806
248,152
777,651
$ 1,025,803
$ 124,681
74,348
69,731
268,760
757,043
$ 1,025,803
354,153
832,258
1,186,411
137,586
91,993
229,579
956,832
1,186,411
118
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, 1998 and 1997
Operating revenues:
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
Net nonoperating revenues (expenses)
Income (loss) before operating transfers
Operating transfers:
Operating transfers in
Operating transfers out
Net operating transfers
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
1998
$ 1,326,910
583,314
649,916
145,837
74,312
1,453,379
(126,469)
22,771
(1,091)
21,680
(104,789)
80,000
(175,000)
(95,000)
(199,789)
956,832
$ 757,043
1997
$ 1,432,560
615,859
236,048
193,410
80,150
1,125,467
307,093
14,820
14,820
321,913
80,000
80,000
401,913
554,919
$ 956,832
119
CITY OF CUPERTINO, CALIFORNIA
Blackberry Farm Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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
Operating 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 investments, end of year
1998
$ 1,308,263
(734,310)
(583,314)
(9,361)
80,000
(175,000)
(95,000)
(20,796)
(20,796)
22,771
(102,386)
349,347
$ 246,961
1997
1,420,952
(415,737)
(615,859)
389,356
80,000
80,000
(415,260)
(415,260)
14,820
68,916
280,431
349,347
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
Increase (decrease) in accounts payable and accruals
Increase (decrease) in deposits
Total adjustments
Net cash provided (used) by operating aotivities
120
(126,469)
74,312
3,615
61,443
(22,262)
117,108
(9,361)
307,093
80,150
(4,806)
13,721
(6,802)
82,263
389,356
CITY OF CUPERTINO, CALIFORNIA
Cupertino Sports Center Enterprise Fund
Comparative Balance Sheets
June 30, 1998 and 1997
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
1998
$ 287,535
2,750
290,285
28,314
$ 318,599
$ 28,926
3,136
32,062
286,537
$ 318,599
1997
133,630
1,131
134,761
46,124
180,885
9,405
9,405
171,480
180,885
121
CITY OF CUPERT/NO, CALIFORNIA
Cupertino Sports Center Enterprise Fund
Comparative Statements of Revenues, Expenses
and Changes in Retained Earnings
For the Fiscal Years Ended June 30, 1998 and 1997
Operating revenues:
Charges for services
Total operating revenue
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 nonoperating revenues (expenses)
Income (loss) before operating transfers
Operating transfers:
Operating transfers in
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
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
171,480
$ 286,537
1997
$ 721,359
721,359
117,266
93,538
388,483
18,932
.618,219
103,140
2,503
250
2,753
105,893
40,000
145,893
25,587
171,480
122
CITY OF CUPERTINO, CALIFORNIA
Cupertino Sports Center Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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 f'mancing activities:
Repayment of mterfund advances
Operating transfers m
Net cash provided by noncapital
financing activities
Cash flows from capital and related f'mancing activities:
Purchase of fixed assets
Cash flows provided by investing activities:
Interest received
Net increase (decrease) in cash and investments
Cash and invesmaents, beghaning of year
Cash and investments, end of year
1998
$ 810,191
(529,262)
(137,596)
143,333
10,572
153,905
133,630
$ 287,535
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
104,788
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
17,508
(1,620)
22,657
Total adjustments
38,545
Net cash provided (used) by operating activities
123
$ 143,333
1997
;/22,103
(511,897)
(! 17,266)
92,940
(37,000)
40,000
3,000
250
2,503
98,693
34,937
133,630
103,140
18,932
744
(29,876)
(10,200)
92,940
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
Equity:
Retained earnings
Total liabilities and equity
CITY OF CUPERTINO, CALIFORNIA
Recreation Programs Enterprise Fund
Comparative Balance Sheets
June 30, 1998 and 1997
1998
1997
$ 390,191 $ 310,105
- 1,213
390,191
$ 390,191
311,318
443
$ 311,761
$ 33,351 $ 50,482
356,840
$ 390,191
261,279
$ 311,761
124
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, 1998 and 1997
Operating revenues:
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 nonoperating 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
1998
$ 1,178,522
332,210
142,438
522,627
364
997,639
180,883
14,757
(79)
14,678
195,561
(100,000)
(lO0,O00)
95,561
261,279
$ 356,840
1997
$ 1,t86,879
288,526
91,466
557,368
1,179
938,539
248,340
8,074
8,074
256,414
(100,006)
(100,006)
156,408
104,871
$ 261,279
125
CITY OF CUPERTINO, CALIFORNIA
Recreation Programs Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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 £mancing activities:
Operating Transfers out
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
1998
$ 1,179,735
(682,196)
(332,210)
165,329
(100,000)
14,757
80,086
310,105
$ 390,191
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
Increase (decrease) in accounts payable and accruals
Total adjustments
Net cash provided (used) by operating activities
180,883
364
1,213
(17,131)
(15,554)
165,329
1997
$ 1,185,807
(653,693)
(288,526)
243,588
(100,006)
8,074
151,656
158,449
$ 310,105
$ 248,340
1,!79
(1,072)
(4,859)
(4,752)
$ 243,588
126
CITY OF CUPERTINO, CALIFORNIA
Senior Center Enterprise Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Current assets:
Cash and investments
Accounts receivable
Total assets
Liabilities and equity
Liabilities:
Current liabilities:
Accounts payable and accruals
Accrued sick leave and vacation
Total Liabilities
Equity:
Retained earnings
Total liabilities and equity
1998
$ 301,456
$ 301,456
$ 2,499
9,590
12,089
289,367
$ 301,456
1997
160,663
496
161,159
9,516
9,516
151,643
161,159
127
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, 1998 and 1997
Operating revenues:
Charges for services
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Interest income
Income (loss) before operating transfers
Operating transfers:
Operating transfers in
Net income (loss)
Retained earnings, beginning of Year
Retained earnings, end of year
1998
378,957
45,568
335,852
440
381,860
(2,903)
15,627
12,724
125,000
137,724
151,643
289,367
1997
346,485
46,511
295,023
1,000
342,534
3,951
8,302
12,253
12,253
139,390
151,643
128
CITY OF CUPERTINO, CALIFORNIA
Senior Center Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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
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
1998
$ 379,453
(333,719)
(45,568)
166
125,000
15,627
140,793
160,663
$ 301,456
1997
345,989
(292,978)
(46,511)
6,500
8,302
14,802
145,861
160,663
Reconciliation of operating income (loss) to net cash
provided (used) by operating actvifies
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
Net cash provided (used) by operating activities
$ (2,903)
496
2,573
3,951
(496)
3,045
$ 166 $ 6,500
129
NOTES
130
1]VTERNAL SER VICE FUNDS
The Internal Service Funds are used to account for the financing of goods or services provided by
one department 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 infrastructure.
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.
131
Assets
Current:
Cash and investments
Accounts receivable
Other assets
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Balance Sheet
June 30, 1998
(With Comparative Totals for June 30, 1997)
Management
Information Workers'
Systems Compensation
Equipment
Revolving
182,549 $ '929,199 $ 278,760
2,966 - -
185,515 929,199
225,838 -
$ 411,353 $ 929,199
278,760
819,566
$ 1,098,326 $
Long-Term
Disability
35,730
35,730
35,730
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
23,140 $ 325,536 $ 8,294 $
23,140 325,536 8,294
4,040 - 382,283
384,173 603,663 707,749
388,213 603,663 1,090,032
$ 411,353 $ 929,199
1,098,326
35,730
35,730,
35,730
132
Totals
1998
1997'
1,426,238 $
2,966
1,429,204
1,045,404
2,474,6O8 $
356,970 $
356,970
386,323
1,731,315
2,117,638
2,474,608 $
1,541,778
4,084
8,051
1,553,913
712,574
2,266,487
453,307
1,289
454,596
382,283
1,429,608
1,811,891
2,266,487
133
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
Management
Information Workers'
Systems Compensation
Operating revenues:
Charges for services $ 297,910 $ 111,152 $
Total operating revenues 297,910 111,152
Operating expenses:
Salaries and benefits 52,636 5,884
Materials and supplies 61,747
Contractual services 128,272 263
insurance and claims 32,208
Depreciation 120,148
Total operating expenses 362,803 38,355
Operating income (loss) (64,893) 72,797
Nonoperating revenues (expenses):
Interest income 6,769 52,018
Other (11,118)
Total nonoperating revenues
(expenses) (4,349) 52,018
Income (loss) before operating
transfers (69,242) 124,815
Operating transfers:
Operating transfers in 177,600
Net operating transfers 177,600
Net income (loss) 108,358 124,815
Retained earnings, previously reported 275,815 478,848
Prior period adjustment
Retained earnings, restated 275,815 478,848
Residual equity transfer
Retained earnings, end of year $ 384,173 $ 603,663 $
Equipment
Revolving
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
65,500
32,895
638,940
638,940
35,914
707,749
134
Long-Term
Disability
Totals
1998 1997
50,198 $ 954,465 $ 879,724
50,198 954,465 879,724
o 203,179 207,110
- 205,205 227,712
o 203,036 196,326
52,717 85,033 184,479
- 305,059. 180,144
52,717 1,001,512 995,771
(2,519) (47,047) (116,047)
2,244 80,858 82,684
- (11,118)
2,244 69,740 82,684
(275) 22,693 (33,363)
- 243,100 174,500
- 243,100 174,500
(275) 265,793 141,137
36,005 1,429,608 1,330,119
- (41,648)
36,005
1,429,608 1,288,471
35,914
1,429,608
35,730 $ 1,731,315 $
135
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
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 transfer in
Residual equity transfer
Net cash provided (used) by noncapital financing activities
Cash flows from capital and related financing activities:
Purchase of fixed assets
Contributed capital
Net cash used by capital and related financing 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
Management
Information
Systems
297,910 $
(169,958)
(53,925)
74,027
177,600
177,600
(183,772)
4,040
(179,732)
6,769
78,664
103,885
182,549
Workers'
Compensation
113,897 $
(135,031)
(5,884)
(27,018)
52,018
25,000
904,199
Equipment
Revolving
496,421
(222,817)
(144,659)
128,945
65,500
35,914
101,414
(465,235)
(465,235)
19,827
(215,049)
493,809
$ 929,199 $ 278,760
136
Long-term
Disability
$ 50,321 $
(56,720)
Totals
1998 1997
958,549 $ 875,640
(584,526) (609,167)
(204,468) (205,821)
(6,399) 169,555 60,652
243,100 174,500
35,914
279,014 174,500
(649,007) (367,286)
4,040
(644,967) (367,286)
2,244 80,858 82,684
(4,155) (115,540) (49,450)
39,885 1,541,778 1,591,228
35,730 $ 1,426,238 $ 1,541,778
137
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
For the Fiscal Year Ended June 30, 1998
(With comparative totals for the fiscal year ended June 30, 1997)
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'
Systems Compensation
Equipment
Revolving
$ (64,893) $ 72,797 $ (52,432)
120,148
- 2,745
5,085
14,976 (102,560)
(1,289)
184,911
1,216
(4,750)
138,920 (99,815) 181,377
$ 74,027 $ (27,018) $ 128,945
138
Long-term
Disability
Totals
1998 1997
$ (2,519) $ (47,047) $ (116,047)
123
(4,003)
305,059 180,144
4,084 (4,084)
5,085 (8,051)
(96,337) 7,401
(1,289) 1,289
(3,880) 216,602 176,699
$ (6,399)
169,555 $ 60,652
139
CITY OF CUPERTINO, CALIFORNIA
Management Information Systems Internal Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Current:
Cash and investments
Other assets
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
1998
$ 182,549
2,966
185,515
225,838
$ 411,353
1997
103,885
8,051
111,936
173,332
285,268
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
$ 23,140
23,140
4,040
384,173
388,213
$ 411,353
8,164
1,289
9,453
275,815
275,815
285,268
140
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, 1998 and 1997
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses
Operating income (loss)
Nonoperatmg revenues:
Interest income
Other
Total nonoperating revenues (expenses)
· Income (loss) before operating transfers
Operating transfers:
Operating transfers in
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
1998 1997
297,910 $ 227,970
297,910 227,970
52,636
61,747
128,272
120,148
362,803
(64,893)
6,769
(11,118)
(4,349)
(69,242)
177,600
108,358
275,815
384,173
60,719
124,024
99,179
86,905
370,827
(142,857)
5,685
5,685
(137,172)
174,500
37,328
238,487
$ 275,815
141
CITY OF CUPERTINO, CALIFORNIA
Management Information Systems Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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
Cash flows from capital and related
financing activities:
Purchase of fixed assets
Contributed capital
Net cash used by capital
and related financing 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
'1998
$ 297,910
(169,958)
(53,925)
74,027
177,600
(183,772)
4,040
(179,732)
6,769
78,664
103,885
$ 182,549
1997
227,970
(226,682)
(59,430)
(58,142)
174,500
(157,069)
(157,069)
5,685
(35,026)
138,911
103,885
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
$ (64,893)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
Decrease (increase) in other assets
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accured sick leave and vacation
120,148
5,085
14,976
(1,289)
Total adjustments
138,920
74,027
Net cash provided (used) by operating activities
(142,857)
86,905
(8,051)
4,572
1,289
84,715
(58,142)
142
CITY OF CUPERTINO, CALIFORNIA
Workers' Compensation Internal Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Current:
Cash and investments
Accounts receivable
Total current assets
Liabilities and equity
Liabilities:
Accounts payable and accruals
Equity:
Retained earnings
Total liabilities and equity
1998
$ 929,199
$ 929,199
$ 325,536
603,663
$ 929,199
1997
904,199
2,745
906,944
428,096
478,848
906,944
143
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, 1998 and 1997
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 nonoperating revenues
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
1998
$ 111,152
111,152
5,884
263
32,208
38,355
72,797
52,018
52,018
124,815
478,848
$ 603,663
1997
102,288
102,288
3,545
4,000
137,714
145,259
(42,971)
48,580
48,580
5,609
473,239
478,848
144
CITY OF CUPERTINO, CALIFORNIA
Workers' Compensation Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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) in cash and investments
Cash and investments, beginning of year
Cash and investments, end of year
1998
113,897
(135,031)
(5,884)
(27,018)
52,018
25,000
904,199
929,199
1997
$ 99,543
(.137,287)
(3,545)
(41,289)
48,580
7,291
896,908
$ 904,199
Operating income (loss)
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Decrease (increase) in accounts receivable
Increase (decrease) m accounts payable and accruals
Total adjustments
Net cash provided (used) by operating activities
$ 72,797
2,745
(102,560)
(99,815)
$ (27,018)
(42,971)
(2,745)
4,427
1,682
(41,289)
145
CITY OF CUPERTINO, CALIFORNIA
Equipment Revolving Internal Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Current:
Cash and investments
Accounts receivable
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
1998
$ 278,760
278,760
819,566
$ 1,098,326
1997
493,809
1,216
495,025
539,242
1,034,267
Liabilities and equity
Liabilities:
Accounts payable and accruals
Equity:
Contributed capital
Retained earnings
Total equity
Total liabilities and equity
$ 8,294 $ 13,044
382,283
707,749
1,090,032
$ 1,098,326
382,283
638,940
1,021,223
1,034,267
146
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, 1998 and 1997
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)
Nonoperating revenues (expenses):
Interest income
Net nonoperating revenues
Income (loss) before operating transfers
Operating transfers:
Operating transfers in
Net income (loss)
Retained earnings, beginning of year
Prior period adjustment
Retained earnings, restated
Residual equity transfer
Retained earnings, end of year
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
638,940
35,914
707,749
1997
502,725
502,725
142,846
103,688
93,147
93,239
432,920
69,8O5
26,325
26,325
96,130
96,130
584,458
(41,648)
542,810
638,940
147
CITY OF CUPERTINO, CALIFORNIA
Equipment Revolving Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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 fmancing 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 year
1998
$ 496,421
(222,817)
(144,659)
128,945
65,500
35,914
101,414
(465,235)
19,827
(215,049)
493,809
$ 278,760
1997
501,509
(202,436)
(142,846)
156,227
(210,217)
26,325
(27,665)
521,474
$ 493,809
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
(52,432) $ 69,805
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
184,911
1,216
(4,750)
Total adjustments
181,377
Net cash provided (used) by operating activities
$ 128,945
93,239
(1,216)
(5,601)
86,422
$ 156,227
148
CITY OF CUPERTINO, CALIFORNIA
Long-Term Disability Internal Service Fund
Comparative Balance Sheets
June 30, 1998 and 1997
Assets
Current~
Cash and investments
Accounts receivable
Total assets
Liabilities and equity
Liabilities:
Accounts payable and accruals
Equity:
Retained earnings
Total equity
Total liabilities and equity
1998
$ 35,730 $
1997
39,885
123
$ 35,730 $ 40,008
$ $ 4,OO3
35,730 36,005
35,730 36,005
$ 35,730 $ 40,008
149
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, 1998 and 1997
Operating revenues:
Charges for services
Operating expenses: Insurance
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Total nonoperating revenues .
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
1998
1997
$ 50,198 $ 46,741
52,717
(2,519)
2,244
2,244
(275)
36,005
35,730
46,765
(24)
2,094
2,094
2,070
33,935
36,005
150
CITY OF CUPERTINO, CALIFORNIA
Long-Term Disability Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 1998 and 1997
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
1998
$ 50,321
(56,720)
(6,399)
2,244
(4,155)
39,885
$ 35,730 $
1997
46,618
.(42,762)
3,856
2,094
5,950
33,935
39,885
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:
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
(2,519)
123
(4,003)
Total adjustments
(3,880)
(6,399)
Net cash provided (used) by operating activities
(24)
(123)
4,003
3,880
3,856
151
FID UCIA R Y FUND S
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 fimds 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.
152
CITY OF CUPERTINO, CALIFORNIA
Agency Funds
Combining Balance Sheet
June 30, 1998
(With Comparative Totals for June 30, 1997)
Assets
Cash and investments
Total assets
Totals
Agency 1998 1997
$ 37,807 $ 37,807 $ 37,830
$ 37,807 $ 37,807 $ 37,830
Liabilities
Deposits
Total liabilities
$ 37,807 $ 37,807
$ 37,807 $ 37,807
$ 37,830
$ 37,830
153
Other Agency
Assets
Cash and investments
Liabilities
Deposits
Totals--All Agency Funds
Assets
Cash and investments
Liabilities
Deposits
CITY OF CUPERTINO, CALIFORNIA
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
For the Fiscal Year Ended June 30, 1998
Balance
June 30, 1997 Additions
Deletions
37,830 $
37,830 $
Balance
June 30, 1998
23 $ 37,807
$ 23 $ 37,807
37,830 $ - $ 23 $ 37,807
37,830 $
- $
23 $ 37,807
154
GENERAL FIXED ASSETS
ACCO UNT GR 0 UP
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 constructed 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.
155
CITY OF CUPERTINO, CALIFORNIA
Comparative Schedules of General Fixed Assets - By Source
June 30, 1998 and 1997
General fixed assets:
Land
Buildings
Improvements other than buildings
Equipment
Total general fixed assets
Investment in general f~xed assets by source:
General fund
Construction bond funds
Special assessment fund
Special revenue funds
Storm drain construction funds
Capital improvement fund
Federal grants
State grants
County grants
Donation from developers
Investment-buildings
Water assets
Total investment in general f~xed assets
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
6,704,208
2,709,522
$ 83,193,192
1997
$ 52,064,866
13,955,234
26,724,008
1,613,664
$ 94,357,772
$ 58,945,510
8,009,419
4,601,486
3,472,844
573,829
10,732,063
882,977
161,566
229,123
44,747
6,704,208
$ 94,357,772
156
CITY OF CUPERTINO, CALIFORNIA
Schedule of General Fixed Assets - By Function and Activity
June 30, 1998
Function and activity
General government:
Administrative services
city hall
City manager
Community services
Community development
Cable television
Total general government
Public safety:
Code enforcement
Other:
Public works
Parks
Engineering
Totalo~er
Total general fixed assets
Land Buildings
$ $ -
90,000 3,391,760
335,112 -
425,112
Improvements
other than
buildings
Equipment
$ . $ 110,070 $
1,363,342 2,291
- 578
- 11,659
- - 3,830
- 143,269
3,391,760 1,363,342 271,697
506,864 501,000
52,092,478 6,941,387
30,174
Total
110,070
4,847,393
335,690
11,659
3,830
143,269
5,451,911
30,174
2,446,050 226,218 3,680,132
14,841,140 87,307 73,962,312
68,663 68,663
52,599,342 7,442,387 17,287,190 382,188 77,711,107
$ 53,024,454 $ 10,834,147 $ 18,650,532 $ 684,059 $
83,193,192
157
CITY OF CUPERTINO
Schedule of Changes in General Fixed Assets - By Function and Activity
For the Fiscal Year Ended June 30, 1998
Function and activity
General government:
Administrative services
Buildings
City hall
City manager
Community services
Community development
Cable television
Total general government
Public safety:
Code enforcement
Other:
Public works
Parks
Engineering
Total other
Total general fixed assets
General
Fixed Assets
June 30, 1997
$ 267,462
13,869,445
5,742,632
20,266
183,261
247,824
42,740
20,373,630
32,966
Additions Deletions
$ 2,000 $ 100,108
190,805
15,053
1,959 21,688
37,129
6,319 75,012
10,278
439,795
2,792
22,279,662 41,487 138,836
51,401~139 2,026,778 46,568
270,375 16,965 89,930
2,085,230 275,334
$ 2,095,508 $ 717,921
73,951,176
$ 94,357,772
Adjustments
& Transfers
$ (59,284) $
(13,869,445)
(704,434)
330,477
(151,873)
(206,865)
169,222
(14,492,202)
(18,502,181)
20,580,963
(128,747)
1,950,035
$ (12,542,167) $
General
Fixed Assets
June 30, 1998
110,070
4,847,393
335,690
11,659
3,830
143,269
5,451,911
30,174
3,680,132
73,962,312
68,663
77,711,107
83,193,192
158
STATISTICAL SECTION
159
CITY OF CUPERTINO
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
Table 1
Fiscal Law Public Adminis~ative Recreation
Year Administration Enforcement Information Services (2) Services
1989 $437,799 $2,893,149 $349,028 $4,674,740 $1,156,951
1990 $654,842 $3,548,791 $351,420 $2,902,016 $892,812
1991 $532,046 $3,515,973 $424,165 $4,640,521 $1,406,014
1992 $588,747 $3,494,477 $412,293 $5,606,696 $1,525,263
1993 $538,465 $3,705,059 $371,661 $1,423,349 $1,436,528
1994 $600,891 $3,501,523 $424,636 $1,465,708 $1,509,808
1995 $692,704 $3,769,584 $472,633 $1,549,162 $1,004,116
(3)
1996 $809,492 $4,123,214 $513,106 $1,817,122 $1,045,300
1997 $854,531 $4,118,027 $537,268 $1,750,575 $1,121,666
1998 $856,836 $4,393,319 $590,667 $1,991,328 $1,164,822
Note:
Community
Development
$1,435,979
$1,193,364
$1,745,110
$1,745,285
$1,517,568
$1,399,637
$2,859,582
$1,580,017
$1,608,010
$1,850,490
(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 from sales of investments of $570,085.
Source: City Administrative Services
160 ,
Public
Works
$4,645,295
$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
Capiml
Outlay
$10,104,968
$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
Debt
Service
$111,446
$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
Total
$24,953,109
$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
161
CITY OF CUPERTINO
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
Table 2
Fiscal Use of Money Inter- Charges Fines and Other
Year Taxes and Property govemmenml for Services Forfeitures Revenue
1989 $10,603,273 $1,821,651 $2,140,871 $1,848,280 $324,253 $1,111,701
1990 $11,626,584 $2,298,706 $2,367,399 $1,912,912 $300,188 $666,070
1991 $11,298,258 $2,670,987 $3,876,299 $1,619,177 $327,095 $1,107,618
1992 $14,973,834 $2,866,780 $3,049,563 $2,030,985 $183,759 $1,481,482
1993 $13,757,203 $2,365,420 $3,350,306 $1,660,878 $174,602 $808,085
1994 $14,339,558 $1,622,393 $3,076,844 $1,680,307 $174,626 $226,714
1995 $14,363,104 $2,490,794 $5,605,848 $1,924,429 $202,055 $456,413
1996 $18,626,169 $2,417,589 $4,660,903 $2,241,106 $193,720 $1,320,878
1997 $18,182,889 $2,671,812 $2,903,880 $2,077,637 $205,366 $792,679
1998 $20,447,603 $2,776,441 $3,602,596 $2,366,376 $241,293 $1,146,454
No~:
Total
$17,850,029
$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
(1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. (Does not include
other financing sources.)
Source: City Administrative Services
162
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 Levy Collections Collected Collections Collections to Tax Levy
1989 $937,844 $898,506 95.81% $37,897 $9361403 99.85%
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%
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
163
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
1989 $2,757,592,956 $64,117,566 $450,768,171 $3,272,478,693 $3,272,478,693
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 $4,860,175,430
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
Source: County of Santa Clara, Department of Finance
164
CITY OF CUPERTINO
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
Table 5
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
County
County Bond
County Retirement
Library Retirement
Cupertino City Bond 0.007 ---
Elem and/or Unif Sch Bonds 0.010 0.030
1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
0.037 0.038 0.038 0.038 0.038 .0.031 .0332 .0338 .0341 .0388
0.002 0.002 0.002 0.002 0.002 0.002 .0024 .0024 .0024 .0024
.0182 .0303 .0292
High School Bonds
Junior College Bonds
Loan Repay-Cupertino
Cupertino San Dist-Bond
SCVWD-State Water Proj
SCVWD-Zone W-1 Bond
TOTALS
0.003 0.002 0.001 0.001 0.001 ...............
0.003 0.003 0.001 0.001 0.001 ...............
0.069 0.012 ........................
0.002 0.001 0.001 0.001 0.001 ...............
0.009 0.008 0.008 0.010 0.010 0.009 .0092 .0072 .0076 .0076
0.003 0.002 0.003 0.003 0.003 0.003 .0023 .0026 .0026 0.002
1.145 1.098 1.054 1.05t5 1.056 1.045 1.047 1.06~4 1.077 1.081
Source: County of Santa Clara Tax Rates and Information
165
CITY OF CUPERTINO
PRINCIPAL TAXPAYERS
JUNE 30, 1998
Table 6
Taxpayer
Hewlett Packard
Tandem Computers, Inc.
Cupertino Gateway Partners
Apple Computer
Westland Properties
Roman Catholic Bishop of San Jose
Cupertino City Center
WDCI, Inc.
Behring Diagnostics, Inc.
Measurex Corporation
Type of Business
Electronic Equipment
Electronic Equipment
Land Developer
Electronic Equipment
Land Developer
Residential
Land Developer
Industrial
Medical
Measuring Device Mfg.
1997-98
Assessed
Valuation
$315,359,766
$310,820,925
$159,978,044
$145,883,322
$103,639,662
$96,412,407
$71,059,251
$30,800,000
$25,916,043
$25,494,413
Percentage of
Total Assessed
Valuation
5.63%
5.55%
2.86%
2.61%
1.85%
1.72%
1.27%
0.55%
0.46%
0.46%
Source: The HdL Companies
166
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
1989 $511,974 $502,801 98.21%
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%
Soul'ce.'
County of Santa Clara and City Administrative Services
167
CITY OF CUPERTINO
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 1998
Table 8
Total Assessed Valuation
$5,538,936,459
Debt limit - 15 percent of Total Assessed Valuation
$830,840,469
Less - outstanding bonded debts
Legal debt margin
$830,840,469
Source: County of Santa Clara and City Adminis~ative Services
168
CITY OF CUPERTINO
RATIO OF GENERAL BONDED DEBT TO ASSESSED
VALUE AND BONDED DEBT PER CAPITA
LAST TEN HSCAL YEARS
Table 9
Fiscal
Year Popul~ion
1989 39,674 $3,272,478,693
1990 40,580 $3,950,282,823
1991 40,354 $4,577,311,437
1992 41,079 $4,860,175,430
1993 41,827 $4,888,101,125
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
Assessed General Bonded Debt
Value Bonded Debt Per Capita
185,000 4.66
80,000 1.97
60,000 1.49
40,000 0.97
20,000 0.48
Ratio of General
Bonded Debt to
Assessed Value
0.000057
0.000020
0.000013
0.000008
0.000004
Source: County of Santa Clara and City Administrative Services
169
CITY OF CUPERTINO
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED
DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
Table 10
Ratio of Debt
Fiscal Total Debt Total General To General
Year Principal Interest Service Expenditures (1) Expenditures
1989 $95,000 $11,325 $106,325 $24,953,109 0.0043%
1990 $105,000 $7,475 $112,475 $29,798,182 0.00'38%
1991 $20,000 $3,500 $23,500 $47,696,609 0.0005%
1992 $20,000 $2,500 $22,500 $30,353,714 0.0007%
1993 $20,000 $1,500 $21,500 $20,458,735 0.0011%
1994 $20,000 $500 $20,500 $26,047,229 0.0008%
1995 ......... $24,997,308 ---
(2)
1996 ......... $27,299,092 ---
1997 ......... $25,136,229 ---
1998 ......... $29,500,789 ---
(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
170
CITY OF CUPERTINO
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 1998
Table 11
1997-98 Assessed Valuation: $5,538,936,459
DIRECT BONDED DEBT
City of Cupertino 1915 Act Bonds
Total Direct Bonded Debt
June 30, 1998
Gross Bonded
Debt Balance
$ 900,000
Percent
Applicable
100.000%
Net
Bonded Debt
$ 900,000
$ 900,000
OVERLAPPING BONDED DEBT
Cupertino Union School District $55,914,985
Santa Clara Valley Water District Zone W-1 $16,175,000
Total Overlapping Bonded Debt
64.106% $35,844,860
5.011% $ 810,529
TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT (1)
1997-98 Assessed Valuation: $5,538,936,459
Ratio to Assessed Valuation:
Direct Debt
Total Gross Debt
0.02%
0.73%
$36,655,389
(1)
This report reflects 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
171
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)
1989 39,674 32.2 7,125 2.0%
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%
Source:
(1) City Administrative Service
(2) Cupertino Chamber of Commerce
(3) Fremont Union High School District
(4) Labor Statistics
· 172 ,
CITY OF CUPERTINO
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN YEARS
Table 13
Fiscal
Year
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
Property
Value (1)
Assessed
Valuation
$3,272,478,693
$3,950,282,823
$4,577,311,437
$4,860,175,430
$4,888,101,125
$5,174,253,234
$5,178,739,409
$5,121,536,207
$5,298,764,322
$5,538,936,459
Residential Construction (2)
Number
of Units
Commercial Construction (2)
Value Value
189 $33,071,000 $20,380,000
366 $39,554,995 $31,186,000
96 $18,309,491 ---
22 $5,102,769 $63,771,540
17 $9,055,055 ---
30 $7,579,919 ---
118 $24,626,353 ---
126 $23,423,228 $271,222
521 $51,129,923 $31,775,355
578 $62,019,693 $45,254,694
Bank Deposits
(in thousands) (3)
$1,083,347
$1,081,397
$1,202,787
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Source:
(1) County of Santa Clara, Department of Finance
(2) City Administrative Services, City Building Department
(3) Findley Reports
173
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 fi.om 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 fi.om 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 Petms 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.
174
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 electronic firm, 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.
175
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
welt.
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 govemment 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, Sunnyvale, Santa Clara and
Los Altos. Cupertino's unique location, nestled
~ ADrit 1998
Cherry
Blossom
Festival
in Bloom
Again
Memorial Park is,
~ * the setting for
this year's
Cherry Blossom
Festival, sched-
uled April 25 and
26. The annual
event features
Japanese food,
cultural arts and
demonstrations.
For complete
information, see
page 2.
', ',~t~', ', How Wet Was It?
~ ~ ' Finding the weather
I,J See page 3
vol, xxt nc, 8
Blackberry Farm ~1
Throws a Picnic
Food end fun offered
Tocl~/restdents T
See page
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.
176
Cupertino is the world headquarters for major corporations such as Apple Computer, Tandem
Computers and others. Several key divisions of Palo Alto based Hewlett-Packard are also located
in Cupertino. This city of 46,000 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 around 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)
Population in the County
Total Taxable Sales - County
Population in City Limits
Total Taxable Sales - City
Occupied Dwellings - City
School Enrollment Gr K-8
School Enrollment Gr 9-12
1994 1995 1996
1,583,800 1,607,700 1,612,258
19,633,18622,561,360 25,257,736
42,350 43,489 44,775
601,600 669,480 705,594
15,445 15,665 15,707
14,091 14,507 14,877
7,744 8,199 8,380
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 Union School District, Fremont Union
High School District, State Board of Equalization,
Association of Bay ~4rea Governments (ABA G}, and Santa
Clara Finance 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%, commercial .2%,
residential 1%, office and industrial .3%. Commercial land may mn as high as $1,200,000 per
acre, office space lease rates range from $1.25 to $1.45 per square foot, all services included.
R&D space lease rates range from $.75 to $1.55 per square foot, all services extra. Retail space
lease rates range from $.90 to $2.55 per square foot, all services extra. The office and R&D
vacancy rates range from 0-3%.
Fees will be assessed for the following: Street lighting, storm drains, water, plan checking
inspection, park (residential only), sewer, construction tax, 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 fi'om the State Employment Development Department
located at 297 West Hedding, San Jose, CA 95110 or at 800 Capitol Mall, Sacramento, CA
95814.
_ 177
The Santa Clara County Labor Market
(ABAG Projection 1995)
Employed residents of County:
Total County employment:
Total civilian labor force:
Agriculture, Mining
Construction
Manufacturing
Transportation/Comm/Utilities
Retail Trade
Wholesale Trade
Finance/Real Estate/Insurance
Services
Government
809,500
827,350
806,917
6,430
28,730
231,590
25,440
120,430
52,240
31,280
278,410
52,800
TRANSPORTATION
Rail - Southern Pacific, San Jose to San Francisco, with
spur line in Cupertino.
Overnight Delivery To - Reno, Sacramento, San
Francisco and Los Angeles.
'Air - Seven miles north of San Jose International
~'i-rport; 32 miles south of San Francisco Airport.
Bus - Santa Clara County Transit Systems, Greyhound
bus 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 California 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 $18.00 per month 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 $3.27 per
year charge for each unit 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 (408) 811-
5600; for business service call (408) 811-2900.
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.
178
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 Palo 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
elementary 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 74.3%, Black 1.0%, Hispanic 4.8%
Asian 23%, American Indian/Eskimo 0.2%
Source: ABAG
VOTER REGISTRATION AS OF 2/27/96
City 22,660 County 837,927
MAJOR PARTY REGISTRATION
City 8,793 (D), 9,362 (R)
County 353,109 (D), 255,170 (R)
Source: County Registrar of Voters
Climate
Average Temperature
Rain Humidity
Period Mm Mean Max Inches 8am 5pm
JAN 40 49
APR 46 57
JULY 54 67
OCT 49 61
YEAR 47 59
57 2.82 85 66
69 1.09 73 56
81 Trace 65 54
74 .65 62 58
70 14.05 70 58
ELEVATION: 236 FEET
Sources: National Weather Service
HOTELS
The Cupertino 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
approximately 137 rooms and 12 suites.
The Hilton Gardens Inn is located next to Cupertino
Village on Wolfe Road at 1-280. The hotel has
approximately 171 rooms and will be open in the
Fall of 1998.
CULTURE AND RECREATION
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 Courier, 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.
-- 179
Other cultural and recreation facilities include:
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 ft facility for senior
activities; Cupertino Sports Center which offers
tennis, fitness, swimming and racquetball;
Community Recreation Center, a 10,100 sq fl
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.
~;,:~ Octo~r ~9'? i" VOl. XI~i no. 2
¢'~ktobcrfcct: Rolling Out Barrels of Fun!
HOUSING
Rentals for one and two bedroom apartments and duplexes range from $725 to $1,700 per month.
Rentals for two and three bedroom houses range from $1,150 to $2,250 per month. The average
price of existing single family homes was $493,000 as of December 1996. The average sale
price for a condo or townhouse was $244,500. (Source: Contempo Realty)
TAX RATES AND GOVERNMENT SERVICES
Residential, commercial, and industrial property is appraised at full market values as it
existed on March 1, 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 Department: .5%, Unincorporated cities,
county, city: 1.0%, State 6.00, County Mass Transit: .25%, Measure A/B .50%, Total: 8.25%.
4. Assessed Valuation (secured and unsecured): Cupertino $5,121,536,207 (1995-96), County
$115,291,711,830 (1995-96).
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.
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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
telesquirt, 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 finns engaging in manufacturing or research and development in Cupertino.
Leading group classes of products are electronics. The largest finns in Cupertino are: '
Name of Company
Employment Products
Hewlett-Packard 3, 600
Apple Computer 3,500
Tandem Computers 3, 000
Honeywell-Measurex 500
Symantec 450
Rational Software 400
Behring Diagnostics 232
Siemens 225
Non-Manufacturing Employment
Cupertino Union School District 1,200
Foothill/DeAnza Community College District 1,100
Fremont Union High School District 722
Sears 294
JC Penney 280
Pacific Gas and Electric Company 2 78
Target 220
Mervyn's 150
Personal Computers
Computers
Computers
Process Controls
Software
Software for Networks
Medical
Electronic Components
Education
Education
Education
Retail
Retail
Utilities
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.
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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, jacuzzis, and a fully equipped cardio fitness center. The center is
located at the intersection of Stevens Creek and Stelling.
BLA CKBERR Y FARM
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 Fernando Avenue and the Golf
Course at 22100 Stevens Creek Boulevard.
DEEP CLIFF GOLF COURSE
This lovely 52-acre facility offers a number of amenities 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. fi. putting green and 12 station hitting area to hone golf skills. A full
service golf shop, lesson programs and clinics 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.
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MEMORIAL PARK
Attractions at the 28-acre park located at Stevens Creek Boulevard at Mary Avenue include acres
of lawn, ideal for family picnics; a lake; amphitheater; lighted softball field and six lighted tennis
courts, as well as the Senior 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
Portal Park - N. Portal Avenue off Stevens Creek Boulevard
Summerset 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
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NOTES
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