HomeMy WebLinkAbout07/21/2003 B A K E R S F I E L D
Mike Maggard, Chair
Harold Hanson
Mark Salvaggio
Staff: Darnell Haynes
BUDGET AND FINANCE COMMI'I-rEE MEETING of the City Council - City of Bakersfield
MOnday, July 21,2003
4:00 p.m.
City Manager's Conference Room, Suite 201
Second Floor -.City Hall, 1501 Truxtun Avenue, Bakersfield, CA
AGENDA
1. ROLL CALL
2. ADOPT APRIL 21, 2003 AGENDA SUMMARY REPORT
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
5. NEW BUSINESS
A. Review and Committee recommendation regarding advanced billing for
refuse services - Klimko / Rojas
B. Review and Committee recommendation regarding acceptance of 2001-02
Transportation Development Act Funds Financial Statements - Rojas
6. COMMITTEE COMMENTS
7. ADJOURNMENT
S:\Darnell~2.003Bud&FinCom~bf03ju121agen.doc
DRAFT
B A K E R S F I E L D
~U~~~ Mike-Maggard, Chair
Alan Tandy City I~ager Harold Hanson
Staff: Darnell W. Haynes Mark Salvaggio
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, April 21, 2003 · 4:00 p.m.
City Manager's Conference Room - City Hall
1. ROLL CALL
Called to Order at 4:08 p.m.
Present: Councilmembers Mike Maggard, Chair; Harold Hanson and
Councilmember Mark Salvaggio (arrived at 4:28 p.m.)
2. ADOPT MARCH 17, 2003 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS.
A. Staff report and Committee recommendation regarding future park
amenities
B. Staff report and Committee recommendation regarding additional
review of park fee credit
Public Works Director Raul Rojas suggested combining Items 4.A and 4.B as the
park development fee is directly affected by the amenities included when the park
is built. Recreation and Parks and Public Works staffs have reviewed the cost to
build .a typical 10-acre park and feel the fee is lower than it should be to actually
build a 10-acrs park. The current Park Development Fee is $647 per unit (house)
for new development based upon the cost of $884,000 to build a 10-acrs
(neighborhood) park. After review of current costs, it would actually cost
$1,350,380 to build a neighborhood park and based on that calculation, the
~ estimated Park Development Fee should be $1,013 per unit.
As the Park Development Fee is directly affected by the amenities, such as rsst
rooms, basketball courts, etc., thers was discussion on what should be included in
DRAFT
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, April 21, 2003
Page - 2 -
a standard neighborhood park. Staff provided an overview of the memo and
exhibits included in the Committee packet, which gave a breakdown of costs to
build parks if additional amenities were added. For example, Centennial Park has
rest rooms, tennis courts, basketball courts and soccer field in the flood control
area on about nine acres and with current.priCes, construction would cost about
$1.6' million.
Staff explained with large subdivisions, the developer builds the park. When 'there
are many small developers, the City contracts for the park to be built and it is paid
for with Park Development Fees.
Committee Member Hanson said 'he had received a call from Brian Todd of the BIA
of Kern County who asked to have this item deferred so staff could meet with-the
BIA to discuss the level of amenities to be included in a standard neighborhood
park.
Committee Chair Maggard asked staff to meet with the BIA and do the groundwork
so a recommendation could be reaChed at the next Budget and Finance
Committee meeting on the standard amenities to be included in a neighborhood
park and based on that, what the Park Development Fee needs to be to construct
a 10-acre (neighborhood) park.
Committee Chair Maggard requested staff to also contact NOR Recreation and
Parks District to get their input on amenity standards in a neighborhood park and
invite them to attend the next Budget and Finance Committee meeting.
C, Review and Committee recommendation on Economic Development
Loan Policy Guidelines
City Manager Alan Tandy explained this issue was put back on the Committee's
agenda at the request of Councilmember Carson Who has concerns that no one
would apply or qualify for the Iow-interest loans that are available for projects in the
southeast area. Since the passage of SB 975, any project using government funds
must pay prevailing wage and this increases the cost of projects by about 20%.
Loans available through Economic Development usually contribute 20% to 30% of
the project cost. Due to the requirement to pay prevailing wage if government
funds are used on a project, the City's loan of 20% is negated by the fact that it
triggers prevailing wage, which raises the cost of the project by 20%. In order to
offset the SB 975 prevailing wage issue, staff provided the following options for the
Committee's consideratiOn:
1. In the past, forgivable loans were granted for projects that would create jobs in
economically depressed areas. A percentage of the loan was forgiven each
year the employment levels were met. When the Economic Development Loan
Guidelines were approved a few months ago, this option was no longer
included.
BUDGET AND FINANCE COMMITTEE MEETING
Monday, April 21,2003
Page - 3 -
2. Loans could be made fOr a 'higher percentage of the project's total cOst.
Instead of loaning 10% to 30%, the range could be raised to allow loans for up
to 50% of 'the project's total cost.
3. Currently only the land (property) is accepted as collateral. This could be
changed to allow real estate and/or equipment as collateral, as were allowed in
the past.
Although there have been complaints about the amount of paperWork, the City
Manager did not recommend changes to the application process as outlined in the
current loan guidelines. The loan application process (information required) is in
the same form as required by financial institutions. If needed, technical assistance
to complete the application forms is 'provided to loan applicants through the Small
Business Administration.
Staff explained with the current loan policy guidelines, the benefits to apply for the
money are not going to offset the cost to comply with SB 975. If relaxing the
guidelines is not desirable, these funds could be put into other kinds of
infrastructure costs for projects, such as sidewalks, street lights, streetscapes or
for equipment as incentives for businesses to locate, rather than carrying a line
item that is not spent because the regulatory costs exceed the benefit for
applicants. The City competes with other cities t° get businesses to locate in
Bakersfield in order to create jobs. To get projects in depressed areas there must
be incentives, or they will locate in better areas of the City.
Vernon Strong spoke regarding the loan policies not working to meet the needs of
small entrepreneurs when there are requirements to have bank financing before
the City will loan money, and also the need to have appraisals and loans or grants
based on equity in property instead of on a total project.
Staff gave an overview of the many successful projects that have been done in the
southeast area and the loans granted.
Committee Chair Maggard stated he was agreeable with allowing flexibility on
other collateral for loans and allowing loans for more than 30% of the project cost.
However, the Committee has made its position clear that loans should be repaid,
so the money will return to be used again for other projects. There could be
wording for exceptions to allow unique financing for special projects, but it must be
concise to avoid this returning to the Committee again for further review.
The City Manager suggested exceptions that are quantifiable would be tax base
growth or job generation, which is clearly a benefit in a high unemployment area.
DRAFT
BUDGET AND FINANOE OOMMITTEE MEETING
Moncl~y, April 21,2003
P~ge - 4 -
Committee Member Salvaggio was in agreement with the Chair, but had concerns
that even if the Committee makes changes to the loan guidelines, it might not
satisfy those Who want to apply but do not want to fill out the paperwork and go
through the loan application process, which is necessary and good business
practice.
Committee' Member Hanson stated he would look at all opportunities available for
developers or entities for .projects .and review the loan guidelines. However, he
expressed the City cannot just give money away, becaase there would be no
incentive to succeed.
Committee Chair Maggard requested staff to meet with Mr. Strong to explore if
there is another aspect of the appraisal process that needs to be considered. And,
without making changes to the'Loan Policy Guidelines at this time, bring' written.
examples of the changes discussed today including information on the appraisal
process back to the Committee for further review.
5, NEW BUSINESS
6. COMMrR'EE COMMENTS
7. ADJOURNMENT
The 'meeting adjourned at 5:40 p.m.
Attendance: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City
Manager John W. Stinson; Assistant to the City Manager Darnell Haynes; Economic
Development Director Donna Kunz, Public Works Director Raul Rojas; Development'
Services Director Jack Hardisty; Recreation and Parks Director Stan Ford; Assistant to
the Public Works Director Georgina Lorenzi; PW Civil Engineer Arnold Ramming;
Economic Development Associate Charles Webb; and Parks Supervisor Ken Trone.
Others: Vernon Strong; and James Burger, reporter, The Bakersfield Californian.
cc: Honorable Mayor and City Council
S:~Darnell~03Budget and Finance~bf03apr21summary
B A K E R S F I E L D.
· CITY OF BAKERSFIELD
PUBLIC WORKS DEPARTMENT
. MEMORANDUM
TO: Alan TaRdy, City Manager
FROM: Raul Rojas, public WOrks DirectOr .
DATE: July 7, 2003 ~~"
SUBJECT: City Council Referral #000522
Effective July Ist, the Solid Waste Division has implemented a new practice for ~
collection of advance deposits for all new commercial refuse service accOunts, as
requested by the Finance Director (copy attached).
S:\FIL[NG~500 CORRES~'lgftCouncil Refen'al #000522 -Rcfusc COllection Accounts.doc
July 15, 2003
MEMORANDUM
2 6
TO: Kevin Barnes, Solid Waste Superintendent ; 27.:¥ ~ ' '
FROM: Gregory J. Klimko, Finance Direr/(
DATE: June 26, 2003
SUBJECT: Requiring. Deposits for Commercial Garbage Service
Effective July 1, 2003, deposits will be required in advance for all new commercial garbage
service. The term "new service" will.include change of ownership at an existing service location.
Additionally, effective August 1, 2003, all existing commercia! garbage customers who become
60 days delinquent on their account shall be required to pay their account current AND pay a
deposit, in advance, before their service is re-ins.tared. All deposits shall be in an amount equal to
one month of service, based on the customer's established service level.
These actions are being initiated to reduce the level of delinquencies among commercial garbage
customers. The Bakersfield Municipal Code section 8.32.060 "B" authorizes the Finance Director
"to require billings to be paid monthly in advance".. Section 8.32.070 of the BMC further supports
this action by stating "The Finance Director... may make such rules and regulations ... as may be
necessary or desirable to aid in such administration and enforcement", regarding the collection of
commercial garbage fees.
Please advise your staff to initiate this change in collection practice based on the effective dates
referenced above.
Attachment (BMC code section)
cc: Alan Tandy /
Raul Rojas
Bill Desca~.-
Nelson Smith
File name: P:/nks/memo-refuse deposits.doc
require billings to be paid monthly in advance; provided,
repair shall be as,ses,v.d the occupant as defined in this that the fn'st monthly char~es ~:~n be pmrami.
mined b~ the city manager or de,xignee. C. The financ~ ~ may m~. ref~m4_s of ai-
D. Indus~es in the city, not the city, vance payments on the same pro rata basis if requeated
sponsible for thc proi~ collection shall be re- in writing in affidavit form by the depositor within three
and mnoval of indus- months from the date of'any termi,~n~ion of an account,
~ waste -from ind~trial Pmnises. The city m~,,!ser or otizrva.se no refund shall be m~ Adjustments for any
deaignee shall determine what is and what is not industri ....
al waste. (ord. 3605 § 1 (pan), 1994) increa~ or decrease of.service !hull otherwise be made
only on a monthly basis.
$.32.040 Charge as debt against occupant of D. All charges set by the city council for re.
property--Penalty, fuse/solid waste~'r~cycling services or otherwise hnposed
in this chapter are due.and p~yable on the first day of the
A. A charge set by the city council for refUSe/solid month and become delinquent after the last day of the
waste mnn~g~t se~'ices sha~ be a civi~ debt OWing mouth. ~terest at.the rate of one perc~t per month shall
to the city ~'om the own~rand/or occupant of the proper-
ry. ' I be a~led to any delinquency. Should the city resort to
B. court acticu to celica amounts due, the city shun be ·
Any serv~ user and/or property owner who fails entitled aJ.so to collect its reasonable costs, including
or refuses to pay such charges shall be subject to a penal- '
t attorneys' fees.
ty as set forth in the goner-al penalty provision, Section E. 'Beginning with the ~986-87-fiscal year, persons
1.40.010 of the Balr__~-s~eld Municipal Code.
~ aged sixty-five or older who own and have. owned and
C. Said a~klkionai charges .shal] be applicable only occupied a single.family dwelling unit since March 1st
in the event that ~t beccxnes necess~ for the city to of the prece~g year shall, upon application to the fi.
commenc~ legal action to collect the charge. (Ord. 3939
§ 2, ~999; Ord. 3605 § 1 (part), ~994) ' uance director between April 1st and ~une 30th, be enti-
tled to a refund of one-half that y~r's annual cha~es
8.32.050 BlUing property owner, paid for city re. fu~solid waste management services to
A. The cha~es set by the city council for re- such dwelling. Not mor~ than one refund shall be
fuse/solid waste management servic~ may be billed to per dwelling.
the l~'operty owner who may collec~ such charges ira. F~ Owner/occupants of a single-family dwel~g,
absent from such dwe41ing for a period of thirty.consecu.
posed against the occupants of such unit or units located tire days after the ~ffecfive date of the ordinance adopt-
on such promises, and sl~ u'an.smit the amount so col-
lected to the city. ing this subsection shall, upon application to the
B. In the event the property owner fails to collect director, be entitled to a prorated refund of zv. fuse/solid
waste/recycling charges for such period as the dwelling
such charges fi'om any such occupant and rcmk the same ts
would be unoccupied for such period of time was
for payment of such charges. (OrcL 3939 § 3, 1999~ Ord.
3605 § ! (pan), 1994) ed co .the water and sanitation department. (Ord. 3~39 §
4, 1999; Ord. 36'/g § 1, 1995: OrcL 3605 § 1 (pan), '"
8.32.060 Biilin~,, collection and payment of 1~94)
A. The collection of the charges shall be under the 8.32.070 Additional powers and duties to ~' ':""'
direction, supervision and couuol of the fin~nc~ clh'~:~, make rules and regulations.
B. !~ell_ecuon T'n¢ finance dixectctr ~ have the power and duty,
units, -'- o.t' .c..?ges for singl~-family dwelling and is ~ to em'orc~ the pr~visions of this
,~t~ rcs, aha triplexes t~ce/vh~ re,~fial can
~eee~ shall be sulxnilI~d by the finance ~ to relaling to the billing and colleaion of cha~es for city
to sucu other county otr~cers as may be ~'~ such rules mi ~e~ as are consistmt with the
p~t of such charges as as~ll~mts on the ~ provisions of this ~ as may be necessary or desir-
able to aid in such administration and cufc~r, emenc (Ord.
re2 of the county and he shall n~luest that the tax coliec. 3605 § 1 (pan), 1994)
each year collect and enforce the as.S~.~trn_~ts in the
to all other charges (including c4munercial and multi- '
r~sidential.r~ase bin accounts), the £mance director may
301
ADMINISTRATIVE REPORT
ME~"~NG DATE: April 30, 2003 ~A SECTION: Consent Calendar--~-"~
Lrr M:
TO: Honorable IVl~yor and City Council
FROM: Raul M. Rojas, Public Works Director DEPARTMENT HEAD~
DATE: April 1, 2003 CITY ATTORNEY~
CITY MANAGER~_~__.~
SUBJECT: Acceptance of 2001-02 Transportation 'Development Act Funds Financial Statements.
RECOMMENDATION: Staff recommends referral to Budget and Rnance Committee.
BACKGROUND: In compliance with the 'Kern Council of Governments Rules and Regulations, the
Califomia Public Utilities Code section 99245, and the California Code of Regulations section 6664, the
attached financial statements for the Transportation Development Act Funds were prepared for the fiscal
year ending June 30, 2002.
The financial statement summarizes fiscal activity for the .Bikeway and Pedestrian Fund, and the Public
Transit Fund.
The accuracy and the fairness of the presentation is the responsibility of the City. The audit firm of
Macias, Gini & Company has issued an unqualified opinion.
No other reports were issued by the accounting firm in regards to the above audit report. ~-
April 3, 2003, 7:42AM
G:\GROUPDA'i'~ADMINR~30tTmnsp. Dev Act Funds Financial Stalments.dot
CITY OF B,-~RSFIELD
Transportation Development Act 'Funds
Independent Auditor's Reports,
Financial Statements and Supplemental Information
For the Fiscal Years Ended Stme 30, 2002 and 2001
Macias, Gini & Company
Management Consuttan:$
CITY OF BAKERSFIELD
T:ansportation Development Act Funds
For the Fiscal Years Ended June 30.2002 and 2001.
TABLE OF CONTE~VTS
Page(s)
Independent Auditor's Report .................................................................................. 1-2
Financial Statements:
Balance Sheets - Bikeway and Pedestrian Special Revenue Fund ........................................... 3
Balance Sheets - Public Transit Special Revenue Fund ....................................................... 4
.Statements of Revenues, Expenditures and Changes in.Fund Deficits -
Bikeway and Pedestrian Special Revenue Fund ............................................................... 5
Statements of Revenues, ExPenditures and Changes in Fund Balances -
Public Transit Special Revenue Fund ........................................................ 6
Notes to the Financial Statements ................................................... .......................... 7-I0
Supplemental Information:
Budget to Actual (G.~.P Basis) - Bikeway and Pedestrian Special Revenue Fund ..................... 1 i ~-
Budget to Actual (G,-M,M:' Basis) - Public Transit Special Revenue Fund ................................. 12
Other Report:
Independent Auditor's Report or, Compliance and on Internal Control
Over Financial Repo.rting Based on an Audit of Financial Statements
Performed in Accordance wi~ Government Auditing Standards
and the Transportation Development Act ................................................................. 13-14
Y. lacias. Gini & Cor:'t?a::5 ....
' ' · ~- · '2 '
To the Board of Directors
Kern Council of Governments
Bakersfield. California
To the City Council
City of Bakersfield
Bakersfield, California
INDEPE~~ AUDITOR'S REPORT
We have' audited the accompanying financial statements of the Bikeway and Pedestrian Special Revenue
Fu.,.d and the Public Trae. sit Specia! Revenue Fund of the City. of' Bakersfield, California (Ci .ty). as of
and for the fiscal year ended June 30, 2002, as listed in the table of contents. These financial
statements are the responsibility, of' the City's management. Our responsibility is to express an opinion
on these financial statements based on our audit. The financial statements of. the TDA Funds of the
City as of. June 30, 2001. were audited by other auditors whose report dated November 14., 2001.,
expressed an unqualified opinion on those statements.
We conducted our audit in aczordance with auditing standards generally accepted in the United S,.ates of
America. Those standards require that we plan and perform the audk to Obtain reasonable assurance
about whether the t'mancial statements are free of material misstatement. An audit includes examining,
on a .test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the o~'erall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As discussed in Note I, the financial statements present only the Bikeway and Pedestrian Special
Revenue Fund and the Public Transit Special Revenue Fund and do not purport to, and do not, present
fairly the financial position of' the Civ,.', as of .tune 30, 2002, and the changes in its financial position for
the .,,'ear then ended in conformity with accounting principles generally accepted in the United States of
America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of. the Bikeway and Pedestrian Special Revenue Fund and the Public Transit Special
Revenue Fund of' the City as of June 30, 2002, and the changes in financial position thereof for the year
then ended in Conformity with accounting principles generally accepted in the United States of America.
As described in Note t. the Cir.; adopted the provisions of the Governmental Accounting Standards
Boa~-d '(GASB) Statement No. ~- Basic Financial Statements - and Management's Discussion and
.4aatysis - For State and Local Governments and GASB Statement No. 38, Certain Financial Statement
Note Disclosures.
In accordance with Government Auditing Standards, we have also issued our report dated August 22,
2002 on our consideration of the Cigt's internal control over f'mancial reporting as it relates to the TDA
Funds and our tests of its compliance with certain provisions of laws, regulations, contracts and grants
for the fiscal year ended June 30, 2002. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in
considering .the results of our audit.
Our audit was made-for the purpose of forming.an opinion on the financial statements of the TDA
Funds taken as a whole. The supplemental information as listed in the table of contents is presented for
purposes of additional analysis arid is not a required part of the f'mancial statements of the TDA Funds.
This information has been subjected to the auditing procedures applied in the audit of the financial
statemeuts ami, in our opinion, is fairly stated in all material respects in relation to the financhl
statements taken as wh. ole.
AccOuntants
Fresno, California
August 22, 2002
! z
I
CITY OF BAKERSFIELD
Bikeway and Pedestrian Special Revenue Fund
Balance Sheets
J'une 30, *_.002 and 2001
2002 200 t
ASSETS
Current assets:
Cash (Note 2) $ 883
Due from other governments 28,046 53,959
Total assets $ 28.929 $ 53,959
LIABILITIES AND FUND DEFICITS
Current liabilities:
Accounts payable S 14.237 S
Due to local agencies 30.996
Due to general fund - 15,989
Deferred revenue (Note 3) - 35.415
Total current liabilities 45.233 54,404
Fund deficits (Note 4) (16,304) (445)
Total liabilities and fund deficits $ 28,929 S 53,959
The notes to the financial statements are an integral part of this statement.
3
CITY OF BAKERSFIELD
Public Transit Special Revenue Fund
Balance Sheets
June 30, 2002 and 200 t
2002 2001
ASSETS
Current assets:
Cash (Note 2) $ 71,062 $ . 13,568
Accounts receivable - 1,965
Accrued interest receivable 649 340
Total assets S 71.711 S 15,873
LIABILITIES
Current liabilities: ..,..
Accounts payable $ 13,333 S 7.400 ~ ...... ~..
Deferred revenue (Note 3) 58.37:5 8,~T3
Total liabilities 5 71.711 S 15.873
o
I
I
I
I
I
I
I The notes to the financial statements are an integral part of this statement.
CITY OF BAKERSFIELD
Bikeway and Pedestrian Special Revenue Fund
Statements of Revenues. Expenditures and Changes in Fund De~cits
For the Fiscal Years Ended J'une 30. 2002 and 200 I.
2002 200 t
REVEN'UES
Local transportation fund S 35,426 $ 155.586
Other 45 t 5,040
Total revenues 35,877 - 160,626
EXPENDITURES
Bikeway and pedestrian 51.736 160,626
Excess (de~,ciency) of revenues
over (under) expenditures (15,859)
Fund deficits. Suly [ (445')
Fund deficits..l'une 30 S (t6,304) $ (4.4.5,
The notes to the f'mancial statements are an integral part of this statement.
CITY OF BAKERSFIELD
Public Tt-ansit Special Revenue Fund
Statements o~ Revenues. Expenditures and Changes in Fund BalanCes
For the Fiscal Years Ended June 30. 2002 and 200
2002 200 t
REVENUES S '155,035 S 96.833
Local transportation fund 2,938 4,901
Interest and other
157,973~ 101,734
Total revenues
EXPENDITURES 1.57.973 1.01.734
Public transit
Excess of revenues over ex;enditures .
Fund balances. Jury 1.
Fund balances. June 30 S S -
notes to the Financial statements are an integral part of this statement.
6
CITY OF BAKERSFIELD
Transportation Development Act Funds
Notes to the Financial Statements
For the Fiscal Years Ended June 30, 2002 and 2001
NOTE I - SLr~IARY OF SIGNIFICANT AccoUNTING POLICIES
The financial statements of the Transportation Development Act (TDA) Funds of the City of
Bakersfield (City) have been prepared in conformity with accounting principles generally accepted in
the United' States of America as applied to governmental units. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing govemmental accounting
and financial reporting principles. The more significant of the City's accounting policies are described
below.
Reporting Entity
The TDA provides funding of public transportation through regional planning and programming
agencies. Funds are allocated to the City through the county transportation planning agency, Kern
Council of Governments. The TDA Funds account for the City's share o~' the TDA allocations, which
are legally restricted for specific purposes as detailed in applicable sections of the Pubiic Utilities Code.
The TDA Funds of the City are the Streets and Roads Special Revenue Fund (no activity in recent
years). Public Transit Special Revenue Fund and the Pedestrian and Bicycle Fund, and accordingly, are
included in the accompanying basic financial statements of the City.
The accompanying financial statements present only the TDA Funds of the City and are not intended to
present fairly the financial position, changes in financial position and cash flows of the City in
conformity with accounting principles generally accepted in the United States of America.
Fund Accountin~
The accounts of the City' are organized on the basis of funds and account groups, each of which is
considered a separate accounting entity. The operations of each fund is accounted for with a separate
set of self=balancing accounts that comprise its assets, liabilities, fund equity, revenues, and
expenditures or expenses as appropriate. Government resources are allocated to and accounted for in
individual funds based upon the purposes for which they are to be spent and the means by which
spending activities are controlled.
The Bikeway and Pedestrian Fund and the Public Transit Fund are governmental funds specifically
categorized as a special revenue 5.rods. Special revenue funds are used to account for the preceeds of
specific revenue sources (other than expendable trusts or major capital projects) that are legally
restricted to expenditures for specified purposes.
7
CITY OF BAKERSFIELD
Transportation Development Act Funds
Notes to the Financial Statements (Continued)
For the Fiscal Years Ended June 30. 2002 and 2OOI.
NOTE 1 - SI.~'~IARY OF.SIGN'IXqC~N~ ACCOUNTING POLICIES (Continued)
Basis of Accounting
The Bikeway and Pedestrian Special Revenue Fund and the .Public Transit Special Revenue Fund are
accounted for using the modified accrual basis of accounting.. Under the modified accrual basis of
accounting, revenues are recognized when they become .measurable and available and expenditures are
recognized 'when the liabilities are-incurred. ~Measurable" means .the amount of the transaction can be
determined and "available' mean~ collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period. A one .year availability period is used for revenue
:recognition for all other governmental fund revenues.
The Bikeway and Pedestrian Special Revenue Fund and the Public Transit Special Revenue Fund report
deferred revenue on their balance sheet. Deferred revenue for ti,ese fu:,.ds arises when ~otential
revenue does not mee: beth the "measura::~e" and "available" criteria for rezognition in the current
period. In subsequent periods, when both revenue recognition criteria are met. or when the Ci~' has a
legal claim to the resources, the liability for deferred revenue is removed from the balance s?,.eet and
revenue is recognized.
Budgetary Information
:~'mual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America for the Bikeway and Pedestrian Special Revenue Fund and the Public Transit
Special Revenue Fund. Appropriations carried forward from the prior year are to be used.only for the
purpose originally intended. Tb. erefore, the transtar of carried forward appropriations to current budget
appropriation is not 13ermitted. City Council approval is required in order to increase total
appropriations of a fund, and transfer appropriations between funds.
Inteffund Receivables/Payables
'The Ciry's General Fund is advancing cash for payment of expenses related to the Bikeway and
Pedestrian Special Revenue Fund. The amounts due to the General Fund at veer-end are classified as
"due to other funds" on the balance sheet.
cITy OF BAKERSFIELD
TransporTation Development Act Funds
No~el to the Financial Statements (Continued)
For the Fiscal Years Ended June 30, 2002 and 200
NOTE .l - SI~IARY OF SIGNIFICANT ACCOLRNq'ING POLICIES (Continued)
New Pronouncements
Governmental Accounting Standards Board Statement No. 34 - The City adopted the provisions of
GASB 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and
Local Governments. This statement affects the manner in which the City records transactions and
presents financial information. State and local govemmenta have traditionally used a f'mancial reporting
model substantially different from the on~ sued to prepare private-.~-ctor financial reports.
GASB Statement No. 34 establishes n~w requirementa and a new r~porting mod~l for the annual
financial reports of state and local governments. The statement was developed to-make annual reports
of state and local governments easier to understand and more useful to the people who use
*_ovemmental financial information .'.o make decisions.
Governmental Accounting Standards Board Statement No. 38 - The City also adopted the
provisions of GASB Statement No. 38. Certain Financial Statement Note Disclosures. This statement
modifies, establishes and rescinds certain financial statement disclosure requirements. Accordingly.
certain footnote disclosures have been revised to conform to the provisions of GASB Statement No. 38.
Risk Management
The City participates in various risk management programs, some of which relate to the Bikeway and
Pedestrian Special Revenue Fund and the Public Transit Special Revenue Fund, and are reported in the
f'mancial statements of the City.
NOTE 2 - CASH
Cash balances of the TDA funds are pooled with those of other funds and invested by the City. to
maximize investment opportunities' and yields. Investment income resulting from this pooling is
allocated among the funds based upon each respective fund's average cash balance in relation to the
aggregate investment balance. F,_,r*.her information regarding the City's cash and investment pool may
be found in the City's basic financial statements.
9
CITY OF BAKERSFIELD /
Transportation Development Act Funds t
Notes to the Financial Statements (Continued)
For the Fiscal Years Ended June 30, 2002.and 200 I.
NOTE 3 - DEFEI~D REVE~'ro'E
The Local Transportation Fund (LTF) and State Transit Assistance Fund (STA) allocate fi. rods to the
City to fund its TDA operations. The TDA requires that any funds not used may be returned to their
source. LTF and STA allocations are considered earned when they are properly spent for .operations.
Allocations received but not earned are recorded as deferred revenues.
Changes in the deferred revenue account for the fiscal year ended June 30, 2002 is summarized as
follows:
Bikeway and Pedestrian Special Revenue Fund: 2002 2001
Deferred revenue, .beginning of year S 38,415 S 1,079
TDA allocations - 176,000
Paid to local agencies (40)
Due to lc, cai agencies (30,996)
TDA funds allowed (7,379) (138,664)
Deferred revenue, end 'of yea.- $ S 38,0,15
Public Transit Special Revenue Fund: 2002 2001
Deferred revenue, beginning of year $ 8,4.73 $ -
TDA allocations 204.,940 105,306
TDA funds allowed (155,035) (96.833)
Deferred revenue, grid of year $ 58,378 S 8,'4.73
NOTE 4 - DEFICIT Flot'N'D BA.L.-LNCE
Bikewawand Pedestrian Special Revenue Fund
The Bikeway and Pedestrian Special Revenue Fund tends to maintain a deficit fund balance duc to the
fact that it borrows funds from :'-'ne general fund. %%2~en the general fund is reimbursed, r2,,e deficit in
the fund balance account will be eliminated.
tO
SUPPLE.~IENTAL INFOR.MATION
CITY OF BAKERSFIELD
Bike,xay and Pedestrian Special RevenUe Fund
Budge: :o Actual (GAAP Basis)
For the Fiscal Year Ended June 30, 2002
Variance
2002 2002 Positive
Budget Actual (Negative)
REVENUES
Local transportation' ~und $ 75.37.4 S 35,4.26 S(39.94.8)
Other revenue - 4.51 ,1.5 t
Total-revenu~ 75,374 35,877 (39,~.9"/) '
EXPENDITURES
Bikeway and pedestrian 75.374. 51.736 23,638
Excess (.deficien¢?') of revenues
over (under) expenditures S (15.859) S ( t5.859~
Fu.~d deficits..l'uly I (44.5)
Fund deficits..l'une 30 S ([6.304)
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CITY OF BAKERSFIELD
Pub2c Transk Special Revenue Fund
B,:dge~ to Actual (GAAP Basis)
For the Fiscal Year Ended June 30. 2002
Variance
2002 2002 Positive
Budget Actual (Negative)
REVENL"ES
Localtransportati0n fund S 21.3,4t3 5 155,035 5 (58,378)
Interest income 1.1300 2.938 t,938
Total r~venues 2'14,41.3 157,973 (56,440)
EXPENDITURES
Public transit 213.133 157,973 55.160
5 1.280 - 5 (1.280)
Fund balance. July t
Fund balance, lune 30 S -
12
To the Board of Directors
Kern Council of Governments
Bakersfield, California
To the City Council
City of Bakersfield
Balmrsfield, California
LNDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
AND ON INTEtLNAL CONTROL OVER FIN.-~NCIAL REPORTING
BASED ON AN ALI)IT OF FIN.~NCIAL STATEMENTS PERFOI:LMED LN
ACCORDANCE WITH GOVEIhVMENT.4 UDIT1NG STANDARDS
A_ND THE TR.~NSPORTATION DE~,'ELOPME.N-r ACT
We have audited the accompanying Financial statements of the Transportation Development Act (TDA)
Funds of the City of Bakersfield, California (City), as of and for the fiscal year ended .l'une 30. 2002.
and have issued our report hereon dated August 22, 2002, which included an explanatory paragraph
due to the implementation of Governmental Accounting Standards Board (GASB) Statement No. 34.,
Basic Financial Statements - and Management'$ Disc~ssion and Analysis - for Stare and Local
Governments; and GASR Statement No. 38, Certain Financial Statement Note Disclosures. We
conducted .our audit in accbrdance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Compliance
As-part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grants, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. Our audit was further made to determine that TDA 5ands
allocated to and received by the City were expended in conformance with applicable statutes, rules and
regulations of the TDA and the allocation instructions and resolutions of Kern Council of Governments
as required by Section 6666 of Tide 21 of the California Code of Regulations. However, providing an
opinion on compliance with those provisions was not an objective of oUr audit and, accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance that are
required to be reported under Government Auditing Standards and the Transportation Development Act.
~..... ..-..-? * .,.~ '..-_.. :... · i-:....~:,,, · ~;, : ... . '..
Internal Control Over Financial Reporting
In planning and performing our audit, v,-e .considered the internal control over the City's f'mancial
reporting as it relates to the TDA Funds in order to determine our auditing procedures for the purffose
of expressing our opinion on the financial statements and not to provide assurance on the internal
control over financial reporting. Our consideration of the internal control over financial reporting
would not necessarily disclose all matters ia the .internal control over financial reporting that might be
material weaknesses. A material weakness is a condition in which .the design or operation of one or
more of the internal control components does not reduce to a relativ(~ly low level the risk that
misstatements in amounts that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matter involving the internal control over financial reporting and
its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of City management, the City Council, State
Controller's Office, and the I~m Council of Governments and is not intended to be and should not be
used by anyone other than these specified parties.
Fresno, California
August 22, 2002
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