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PG CAFR 2004

PG CAFR 2004

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Published by Mark Dierolf
City of Pacific Grove Comprehensive Annual Financial Report for fiscal year ending in 2004. Some pages are missing.
City of Pacific Grove Comprehensive Annual Financial Report for fiscal year ending in 2004. Some pages are missing.

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Published by: Mark Dierolf on May 14, 2012
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February 10, 2005Honorable Mayor CostelloMembers of the City CouncilCitizens of the City of Pacific GroveThe General Purpose Financial Report of the City of Pacific Grove, California, for the fiscal year endedJune 30, 2004, is hereby submitted. This report has been developed and organized to conform togenerally accepted accounting principles and to meet for the first time the governmental reportingstandards in GASB34. Responsibility for both the accuracy of the presented data and the completenessand fairness of the presentation rests with the City. We believe the data, as presented, is accurate in allmaterial aspects; that it is presented in a manner designed to fairly set forth the financial position andresults of operation of the City as measured by the financial activity of its various funds and accountgroups; and that all disclosures necessary to enable the reader to gain an understanding of the City’sfinancial affairs have been included.
Summary of Financial Results
General Fund 
The fiscal year ended June 30, 2004 is a reflection of the economical problems of the State of California.The City’s situation of increased expenses and reduced revenues is in direct response to the inability of the State to provide solutions to Californian’s budgetary woes. The City of Pacific Grove, like other citiesin California, is the final rung in the response to dealing with the public services costs. The CaliforniaLegislative has not increased taxes or revenues, so they take dollars from the Counties and Cities; this inshort, is the main problem to any city in California.The economy in California has not rebounded and low production growth and diminished tourism isaffecting our region leaving sales and transient occupancy taxes reduced or flat. Compounding thestagnate climate in the state with the record increases in cost to our employees retirement and workerscompensation insurance made of this year the hardest year in the last decade. The City, both citizens andemployees, had to make sacrifices and accommodations in order to provide the required services to ourcitizens. Our most important correcting measure to cope with our problems came in the form of wagereductions. All city employee Associations were in agreement to reduce their wages for one year by a3.5% of their gross. Eight positions were eliminated during the year in 6 departments. The General Fundservices were the first ones to be affected by these changes. Reduction in hours of services was the lastresource. Litigation cost and a consent decree imposed on the City, made our fund balance to take asignificant declined. The General fund suffered a loss of $247,800.00 for the year leaving only$1,588,640 on June 30, 2004.Total revenues in the General Fund amounted to $12.7 million. The difference in total receipts from theprior fiscal year is an increase of $473 thousand, which represents a 3.7% change. The largest source of 
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revenue, as in past years, was Transient Occupancy, and Property Tax with receipts of $2.8 million eachfor the year. Total actual receipts for the General Fund exceeded the budget estimate by $ 16 thousand,or, stated in percentage terms, 0.13%. Below is a chart showing the composition of General Fundrevenues for the year (Figure 1).
Figure 1
Total General Fund spending outflow, including transfers to other funds, amounted to $13.1 millions forthe year. This represents an increase in total spending over the prior year of $560 thousand, which is a4.26% increase. Total spending was $69 thousand over the total budget, or 0.56% in percentage terms. If fund transfers are excluded, the total spending amounted to $12.4million, which represents a 1.52%increase the previous year. The largest single department in spending was the Police Department, withspending of over $3.5 million. Below is a chart showing the distribution of spending by department(Figure 2).
General Fund Revenues by Source
Services11.7%TOT Tax22.2%Utility Use Tax9.2%Franchises5.0%Other Revenues7.4%Property Tax22.3%Business License2.3%Sales Tax12.2%Intergovernmental6.7%Interests1.1%
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Figure 2 
 Enterprise Operations
There are three funds considered to be enterprise funds in the City: Golf Course, Cemetery, and Sewer.Of these, by far the largest is the Golf Course.During fiscal year 2003/2004, the Golf Course had operating revenues of $1.554,390 and operatingexpenses of $1,472,721, leaving a net operating income of $ 81,669. During the 2003/2004 year, the Golf Enterprise spent over $351 thousand in capital improvements and equipment.Next in size is the Sewer Enterprise, which showed an operating loss of $6,313, based on operatingrevenues of $ 1,040,350 and operating expenses of $ 1,046,663. A lawsuit against the City made thesecosts increased by $ 751,000 thousand, the funding of the long-term Sewer System Asset Master Planincrease expenditures by $367,273 and a Phase I of a project to redirect surface water to the sewer systemwas put in place accounts for the remainder.The final enterprise is the operation of El Carmelo Cemetery. During the year, this enterprise had netoperating income of $ 113,438 based on operating revenues of $374,341 and operating expenses of $260,903. Below is a chart summarizing income results for the three enterprises (Figure 3).
General Fund Expenditures by Department
Recreaion6.7%Public Works11.6%Transfers Out5.9%Administrative Serv.12.7%CommunityDevelopment6.5%Capital Outlay0.1%Fire19.4%Library6.3%Museum2.6%Police28.1%
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