13. Annual Financial Report
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
Fax: (408) 777-3366
CITY OF
CUPEIQ"INO
DEP ARTMENT OF ADMINISTRATIVE SERVICES
Agenda Item No. I 3
Meeting Date: February 6,2007
SUBJECT AND ISSUE
Accept the City's year-end financial reports for 2005-06.
BACKGROUND
Staff is pleased to present to the City Council the Comprehensive Annual Financial Report
(CAFR) and Redevelopment Agency Financial Statements for the fiscal year ended June 30,
2006. These reports were discussed in detail with the City's Audit Committee.
The City's auditors found no internal control problems in the City's accounting system.
However, as described in the Redevelopment Agency report, they did learn that the Agency's
five-year implementation plan was overdue. The Agency board corrected the finding by adopting
such a plan on December 6, 2006.
The City had a strong year in revenues, especially in sales, property and hotel taxes and building
and planning fees. General Fund revenues of $35.3 million for 2005-06 were up 11 % or $3.4
million over last year. Expenditures were also up 11 %, increasing from $24.8 million to $27.6
million in 2005-06. The higher spending went toward improving planning and building services,
addressing street, park, and facilities maintenance that had been deferred during the lean budget
years, covering cost of living increases in the County law enforcement contract, and paying 2005
election initiative costs. The General Fund balance increased by $4.6 million and was placed in
economic uncertainty and capital improvement reserves.
RECOMMENDATION
Accept the City's year-end financial reports for 2005-06.
Submitted by:
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David Woo
Finance Director
Approved for submission:
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David W. Knapp
City Manager
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