Financial Report 06-30-2002CITY OF CUPERTINO
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR ENDED
JUNE 30, 2002
Cupertino - A Place for Everyone
www.cupertino.org
CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR FISCAL YEAR ENDED
JUNE30,2002
PREPARED BY:
CITY OF CUPERTINO
FINANCE DEPARTMENT
CAROL A. ATWOOD
DIRECTOR OF ADMINISTRATIVE SERVICES
NOTES
INTR OD UCTOR Y SECTION
CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2002
Table of Contents
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Organization Chart
Commissions and Committees
City Council and Directory of City Officials
Certificate of Award for Excellence in Financial Reporting
Page
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14
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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
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2002
Table of Contents
FINANCIAL SECTION (Continued)
Notes to General Purpose Financial Statements
(1) Sun.mary of Significant Accounting Policies
(2) Cash and Investments
(3) Related Party Loan
(4) Advances
(5) Fixed Assets
(6) Long-Term Debt
(7) Unreserved, Designated Fund Balances
(8) Segment Information for Enterprise Funds
(9) Commitments and Contingencies
(10) Liabilities Under Self-Insurance and Risk Management
(11) Other Post Retirement Benefits
(12) Deferred Compensation Plan
(I 3) Defined Benefit Pension Plan
(14) Deficit Fund Balance
(15) Special Assessment Classification
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COMBINING, INDIVIDUAL AND COMPARATIVE FUND AND ACCOUNT
GROUT 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
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2002
Table of Contents
COMBINiNG, INDIVIDUAL AND COMPARATIVE FUND AND ACCOUNT
GROUP STATEMENTS AND SCHEDULES (Continued)
Comparative Balance Sheets and Statements of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual:
· Storm Drain Fund
· Park Dedication Fund
· Environmental Management Fund
· Gas Tax Fund
· Housing Development Fund
· Leadership Cupertino Fund
· Redevelopment Vallco Fund
Debt Service Funds:
Description of Funds
Comparitive Balance Sheet
Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual
Capital Proiect 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
· Library Remodel Fund
· Senior Center Expansion Fund
· Four Seasons Park Fund
· Sports Center Building Fund
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2002
Table of Contents
COMBINING, INDIVIDUAL AND COMPARATIVE FUND AND ACCOUNT
GROUP STATEMENTS AND SCHEDULES (Continued)
Page
Enterprise Funds:
Description of Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
Combining Statement of Cash Flows
Comparative Balance Sheets, Statements of Revenue, Expenses and
Changes in Retained Earnings and Statements of Cash Flows:
· Resource Recovery Fund
· Blackberry Farm Fund
· Cupertino Sports Center Fund
· Recreation Programs Fund
· Senior Center Fund
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
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2002
Table of Contents
COMBINiNG, iNDIVDUAL AND COMPARATIVE FUND AND ACCOUNT
GROUP STATEMENTS AND SCHEDULES (Continued)
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
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CITY OF CUPERTINO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2002
Table of Contents
STATISTICAL SECTION
General Governmental Expenditures by
Function - Last Ten Fiscal Years
General Governmental Revenues by Source -
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
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
Demographic Statistics - Last Ten Fiscal Years
Property Value, Construction and Bank Deposits -
Last Ten Fiscal Years
City Profile
Table
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NOTES
CITY OF
-CUPERTINO
November 1, 2002
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, 2002, is submitted herewith. This annual report consists of three
sections. The Introductory Section includes 1) the transmittal letter which highlights
significant aspects of financial operations during the year and the particular financial issues faced
by the City, 2) an organizational chart, and 3) a list of principal officials. The Financial Section
includes 1) the independent auditors' report, 2) general purpose financial statements and related
notes, 3) combining and individual fund statements and schedules, and 4) 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 matehal respects and is
presented in a manner which fairly sets forth the City's financial position, results of operations,
and cash flows of its propr/etary 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 14. This financial report incorporates data
for the City of Cupertino, the Cupertino Public Facilities Corporation, and the Cupertino
Redevelopment Agency.
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.
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 11 square miles and is bordered by the cities of San
Jose, Saratoga, Sunnyvale, Santa Clara and Los Altos.
Richmond
CUPERTINO
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, Portal
Software, and Symantec. A key division of Hewlett-
Packard is also located in Cupertino. The City has
eight large shopping centers including its own
regional mall, Vallco Fashion Park.
Developments at the national, state and local level
have presented unique fiscal challenges to the City. The continuance of 2000's national
economic slowdown was exacerbated by the September I 1 terrorist attacks, which introduced
additional uncertaintie~ in the markets, business stability and consumer confidence. From 2001-
02, federal revenues felI 6.6% - the most dramatic decline since I946. While the country's
heightened state of security provided a ghm backdrop, discoveries of accounting malfeasance
served to dampen hopes of a speedy recovery in the corporate sector. The State of California, hit
hard by slumping capital gains realizations, in personal income and corporate profits, and
constrained by the effects of a prior year energy crisis, labored under a significant budget deficit.
California municipalities continued to seek ways to protect local government revenues from the
State Treasury's reach.
Although the local economy had already been weakened from last year's high-tech decline, a
slowdown in consumer spending and tourism caused further deterioration in sales and hotel tax
receipts for municipal budgets. Residential and commercial property values held steady for most
of the fiscal year, but actual real estate activity slowed significantly. The slowing economy has
also eased pressure on commercial lease rates, and the labor market has softened significantly.
In Cupertino, sales trax represents the major source of general fund revenue, comprising over
35%. This revenue source has changed dramatically in the last 8-10 years. In 1994, retail sales
comprised 50% of our sales tax revenue. Limited availability for land development and the loss
of sales to other regional malls have contributed to a flattening of sales tax from this sector.
Today, retail sales represent 37% of this base with the business to business sector at 38%. The
economic downturn has caused sales tax revenues to decline 16.8% in the past two years.
2
SALES TAX TREND
Economic development has become a focal point for Cupertino. In recent years the City has
implemented programs specifically targeted to business retention, expansion and attraction,
including a policy for personal contact with local business leaders. The City's top 10 sales tax
producers participate in a program of reporting timely sales tax information directly to the City.
Because the City's sales tax has been largely dependent on the success of the region's high tech
industry, sales tax revenues continued to decline from the exceptional levels of 1999-2000. But
as Northern California struggles to recover from the economic downturn, the City stands ready to
tap the possibilities of its newly formed Redevelopment Agency, with the Vallco project area as
the cornerstone. The City will work towards enhancing retail at this regional mall and pursue
other opporttmities to strengthen its economic position.
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
1993
1994 1995
1996
1997 1998
1999 2000
2001 2002
· ACTUAL
· ADJ BY CPI
(In thousands)
3
MAJOR INITIATIVES
Current Year Projects
1. Foster a Sense of Community
· Establish a teen commission to address the needs faced by this portion of our community.
· Continue partnerships with area schools to add value to the quality of education and
recreational prospects in the City.
· Implement a skateboard park for community youth.
· Offer opportunities and programs to address the needs of our diverse community.
· Foster a better sense of community through recreation activities, outreach programs, and
expansion of community events.
2. Ensure Land Use is Compatible with Community Character
· Revise the Housing Element of the City's General Plan and submit for approval by State.
· Ensure that the "walkable city" concept is present (trails, paths, public access) in all
development/redevelopment projects.
· Develop a master plan for the City Center and Town Center, including a full service
hotel, park, and new library.
· Implement the San Tomas/Samtoga Creek Plan, and investigate feasibility of
opportunities of the Stevens Creek Trail.
· Optimize community benefit with the remaining office, industrial and commercial
development approvals.
· Complete annexations of Garden Gate and individual parcels of the Monta Vista areas.
3. Protect and Promote our Public Safety
· Review and approve a pedestrian street safety plan.
· Identify and resolve sign obstruction fi.om trees/shrubs
· Implement a "safe routes to school" program.
· Evaluate methods for communicating (electronically and in writing) to our non-English
speaking population regarding crime prevention.
· Continue emphasis on our neighborhood watch and disaster preparedness programs.
4. Enhance Services
· Identify needs and provide affordable housing opportunities to Cupertino teachers and
other local workers.
· Expand quality municipal services to newly annexed regions of the City.
· Explore outreach by expanding access to our City Council and Commission meetings by
making them available world-wide through the City's website.
4
5. Ensure the Financial Health of the Community
· Encourage healthy environment for retail growth.
· Add a revenue enhancement incentive policy component of review for new development.
· Evaluate transit/transportation implication of economic development strategy.
6. Pursue Infrastructure Improvements
· Develop conceptual design of new Library and City Center Plaza; provide funding
mechanisms.
· Provide plans for redesign and upgrade of the Cupertino Sports Center.
· Continue active street improvement program.
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 and other
agencies, continued automation, funding of the capital improvement program and meeting
economic development needs.
The City will be embarking on several major capital improvements over the next few years. As
work progresses on our City Center (which includes the new library) and Sports Center, master
plans will be implemented at the Blackberry Farm Golf and Picnic Facility, and transportation
projects will remain a priority. Such growth in capital spending will directly impact our
revenues, service efforts and traffic configurations.
5
Department Focus - Efforts and Accomplishments
Each year, we feature a department in the city that has made notable contributions to the
organization or community. This year, the spotlight falls on the Parks and Recreation
Department, celebrating 40 years of fun.
The Cupertino Parks and Recreation Department was first formed in 1962. Three playgrounds
were in operation with 17,000 kids participating and ballet was the first specialty class offered.
Three years later in 1965, Memorial Park land was purchased. In 1966, Wilson, Portal, Monta
Vista and Varian parklands were purchased. Specialty classes had grown to 19 and the first
recreation program for children with disabilities began.
In 1967, the first tiny tots preschool program, day camp, teen Disneyland trip and dog obedience
classes began. In 1968, the seniors took a trip to the World's Fair and produced a weekly radio
program.
Linda Vista property was purchased in 1969 and was dedicated in October of 1970. By the end
of the 1960's, there were 8.6 acres of parkland.
Between 1971 and 1973, Somerset Park and McClellan Ranch property were purchased. The
first bike trail was opened on Stelling Road, community gardens program started with 48
gardening plots at Memorial Park and the recreation schedule was published in the Cupertino
Scene.
During the remainder of the 1970's, McClellan Ranch was designated as a nature and rural
reserve, youth sports fields were developed, and tennis courts were added to Varian and Monta
Vista parks. In addition, construction began on a new 5,500 square foot senior center.
The 1980's began with the opening of the new 5,500 square foot senior center being dedicated in
January.. By the end of 1980, membership at the center had grown from 200 to 1,200. Also
during the 1980's the Big Bunny Fun Race was held, a 4th of July laser light show occurred, and
construction for the Quinlan Conrummity Center began. There were 118 specialty classes offered
and there were more than 83 acres of parkland.
In 1990 the City purchased the De Anza Racquet Club and opened it
with a new name, Cupertino Sports Center. The Quinlan Community
Center also opened in March of 1990. Another important event
occurred in 1990; voters approved Measure "T which allowed the city
to impose a utility tax on gas, electric and telephone bills. These
funds provided the city with an opporttmity to purchase the Blackberry Farm Golf Course and
picnic grounds and the Fremont Older School site that is now Creekside Park. During the
1990's the City concentrated on building a strong parks and recreation program with its recent
parkland and infrastructure purchases. By 1999, 600 specialty classes were offered and there
were 150 acres of parkland, a 27,000 square foot community center, six acres of racquet sports
facility, a 5,500 square foot senior center and a 10,000 square foot recreation center.
In February of 2000, the city broke ground to construct a new
15,000 square foot Senior Center. During construction, the
center's operations were moved to the Quinlan Center and in
March of 2001 the senior center was open for business. By the end
of 2001, membership had grown to 2,700. Cinema at Sundown
was added in 2001. Movies suitable for the whole family are
shown outdoors for three weeks during August and September in
addition to the annual concert series and Shakespeare in the Park. The first Teen Commission
was also appointed in 2001.
On June 27, 2002, the Parks and Recreation Deptuhnent celebrated its 400` birthday at Memorial
Park's Amphitheater. The department continues to strive to bring recreation and leisure activities
to the Cupertino Community. Upcoming projects include a master plan for the Blackberry Farm
Picnic Grounds and the Stevens Creek Corridor Project.
7
FINANCIAL INFORMATION
Accounting System and Budgetary Control
The City's accounting records are maintained on a modified accrual basis of accounting for all
governmental fund types and agency funds. Under this basis, revenues are recognized when
susceptible to accrual, i.e., both measurable and available, and expenditures, other than interest
on long-term obligations which is recorded when paid, are recognized when the liability is
incurred. The accrual basis of accounting is used by the proprietary fund types where revenues
are recognized when eamed 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
or 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 that 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 budgetaay control (i.e., the level at which expenditures cannot legally exceed the
appropriated amount) is the fimctional 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.
General Government Functions
The general govermnent 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 $36.67
million in fiscal year 2001/02, an increase of 2.41% over the preceding fiscal year. The
following table presents revenue by source and the related changes from the prior year.
Revenues by Source
Taxes
Use of Money & Property
Intergovernmental
Licenses and Permits
Charges for Services
Fines and Forfeitures
Other Revenue
Revenues Classified by Source
Governmental Fund Types
Amount
Percent of Total
Increase/(Decrease)
over previous year
Amount Percent
$24,084,418 65.68% $224,642 .94%
2,269,635 6.19 (1,067,016) (31.98)
7,110,898 19.39 1,626,942 29.67
1,310,470 3.58 80,410 6.54
1,148,735 3.13 161,172 16.32
616,227 1.68 145,600 30.94
127,186 0.35 (308,165) (70.79)
Total $36.667.56~9 ! 00.00% $863.585 2.41%
Use of money and property decreased significantly in 2001-02 due to dropping interest rates on
the City's investment portfolio. Although the portfolio balance remained stable, the imminence
of several capital improvement projects necessitates that the City holds investments with a
shorter length to maturity. The Local Agency Investment Fund (LAIF), which typically
constitutes half of the portfolio, was yielding 2.69% at June 30, 2002, as opposed to 5.78% at the
prior fiscal year end. Revenues from Fines and Forfeitures increased due in large part to the
implementation of an automated red light ticketing program implemented late in the prior fiscal
year. Utilization of over $600,000 in CDBG federal grant monies to assist in funding the
affordable housing component of a major multi-family housing development was in part
responsible for the increase in Intergovernmental revenues. An increase of almost $300,000 in
state and local grant revenue for streets and roads also contributed to this category of revenues.
9
Expenditures Classified by Major Service Area
Governmental Fund Types
Expenditures for general governmental functions for fiscal year 2001/02 totaled approximately
$39 million, an increase from the preceding fiscal year of 8%. 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 ,/ear
Amount Percent
Administration $ 1,464,165 3.75% 77,079 5.56%
Law Enforcement 5,765,208 14.77 413,555 7.73
Public Information 707,885 1.81 89,991 14.56
Administrative Services 3,314,944 8.49 281,871 9.29
Recreation Services 1,858,338 4.76 83,854 4.73
Community Development 4,473,788 11.46 1,772,900 65.64
Public Works 11,079,959 28.39 100,809 .92
Capital Outlay 5,435,850 13.93 87,472 1.64
Debt Service:
Principal 2,375,000 6.08 115,000 5.09
Interest 2,559,973 6.56 (124,737) (4.65'}
Total $39.035.11~00 100.00% $2.897.79~4 8.02%
The large increase in Community Development expenditures was due to the $1.6 million funding
of a major multi-family rental housing development through Cupertino Community Services, a
local non-profit organization.
Proprietary Operations
Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprise where the intent is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through
user charges. The following table shows actual revenues, expenses (including depreciation) and
results of operations for the fiscal year ended June 30, 2002.
10
Revenues, Expenses, and Results of Operations
Enterprise Funds
Resource Recovery
Blackberry Farm
Cupertino Sports Center
Recreation Programs
Senior Center
Operating Operating Operating Net
Revenues Expenses Income Income/(loss)
$2,381,132 $1,726,523 $ 654,609 $913,389
1,465,032 1,354,435 110,597 (43,597)
1,107,392 1,086,771 20,621 37,648
1,688,840 1,541,675 147,165 (78,526)
452,964 514,551 (61,587) (63,052)
Totals $7.095.360 $6,223.955 $871.405 $765,862
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, 2002.
Revenues, Expenses, and Results of Operations
Internal Service Funds
Operating Operating Operating Net
Revenues Expenses Income/(loss) Income/(loss)
Management Information
Systems $ 694,600
Workers' Compensation 150,762
Equipment Revolving 894,020
Long-Term Disability 67,587
910,458 $ (215,858) $ 72,834
383,196 (232,434) (180,141)
810,154 83,866 185,044
68,995 (1,408) 755)
Totals $1.806.969 $2,172.803 $ (365.834~ $73.962
Resources are being accumulated in the Equipment Revolving Fund and
Information Systems fund to provide for future replacement of existing equipment.
Management
11
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, 2002, the City had no outstanding tax-supported general obligation bonds. The
City did however have $42.4 million in certificates of participation of debt issues outstanding in
general long term debt.
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 y~eld. The policy addresses
soundness of financial institutions and the types of investments permitted by the California
government code.
The City investments include obligations of the U.S. Treasury, agencies and instrumentalities,
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 $2.3 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.
12
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 Maze and Associates, 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, 2001.
In order to be a~varded 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, Dixie Farley, Tina Hwang, and Chylene
Osbome, for their continued support and dedication. Special recognition goes to Jennifer Chang,
Carol Ferrell, and Dorothy Steenfott for their efforts in the preparation and production of this
report.
Respectfully submitted,
C~d~t~
Director of Administrative Services
13
CITY OF CUPERTINO, CLIFORNIA
Fiscal Year 2001/02
COMMISSIONS AND COMMITTEES
AUDIT COMMITTEE
Carol Atwood
Michael Chang
Gillian Enos
Tom Hall
Dolly Sandoval
HOUSING COMMISSION
Julia Abdala
Richard Abdalah
Sarah Hathaway-Feit
Richard Schuster
Frances Seward
FINE ARTS COMMISSION
Hema Kundargi
Nancy Canter
Shirley Lin Kinoshita
Janet Mohr
Carl Orr
Barbara Phelps
Rita Young
PUBLIC SAFETY COMMISSION
Barry Chang
Emma Darknell
Philippe Dor
Marc Majewski
Hugh Riddell
TEEN COMMISSION
Kevin Busch
Akshita Deora
Erin Gatley
Zoravko Kolev
Emily Liu
Angelica Zen
Jacki Colloton
Patty Fang
Drew Golkar
Kenny Lini
Maurice Noon
BICYCLE PEDESTRIAN COMMISSION
Stuart Chessen
David Greenstein
Anne Ng
Joe Walton
PARKS & RECREATION COMMISSION
Jeanne Bradford
Rod Brown
Frank Jelinch
Roger Peng
Kris Wang
TELECOMMUNICATIONS COMMISSION
Salvatore Algeri
Reginald Duhe'
David Eggleston
L.T. Guttadauro
Emest Tsui
LIBRARY COMMISSION
Sheila Mohan
Janet Riddell
Eno Sctmaidt
Katherine Stakey
Yuhfen Diana Wu
PLANNING COMMISSION
Marc Auerbach
Angela Chen
Chuck Corr
Taghi Saadati
Gilbert Wong
ECONOMIC DEVELOPMENT
Carol Atwood
Keith Dias
Jody Hansen
Sandra James
David Knapp
Richard Lowenthal
Oran Mahoney
Mark McKenna
Steve Piasecki
Ralph Qualls
15
CITY OF CUPERTINO, CALIFORNIA
Fiscal Year 2001/02
CITY COUNCIL
Richard Lowenthal
Mayor
Patrick Kwok
Councilmember
Michael Chang
Vice Mayor
Sandra James
Councilmember
Doily Sandoval
Councilmember
DIRECTORY OF CITY OFFICIALS
David W. Knapp - City Manager
Charles T. Kilian - City Attorney
Carol Atwood - Director of Administrative Services
Rick Kitson - Public Information Officer
Steve Piasecki - Director of Community Development
Ralph Qualls- Director of Public Works
Kimberly Smith - City Clerk
Therese Smith - Director of Parks and Recreation
16
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, 2001
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.
17
NOTES
18
FINANCIAL SECTION
19
NOTES
20
$$0CIA TE$
ACCOUNTANCY CORPORATION
1931 San Miguel Drive - Suite 100
Walnut Creek, California 94596
(925) 930-0902 · FAX (925) 930-0135
E-Mail: maze@mazeassociates, com
Website: www. mazeassociates, com
INDEPENDENT AUDITOR'S REPORT ON
GENERAL PURPOSE FINANCIAL STATEMENTS
To the City Council
City of Cupertino, California
We have audited the general purpose fmancial statements of the City of Cupertino as of and for the
years ended June 30, 2002 and 2001, as listed in the Table of Contents. These fmancial statements
are the responsibility of the City's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards in the United
States of America. Those standards require that we plan and perform the audits to obtain reasonable
assurance as to whether the financial statements are free of mater/al 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 overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly in all
material respects the financial position of the City of Cupertino at June 30, 2002 and 2001 and the
results of its operations and the cash flows of its proprietary fund types for the years then ended, in
conformity with generally accepted accounting principles in the United States of America.
Our audits were made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The supplemental section 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. Such information has been subjected to the auditing
procedures applied in our audit of the general purpose financial statements, and in our opinion are
fairly stated 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 was not audited by us, and we do not express
an opinion on this information.
September 25, 2002
21
A Professional Corporation
CITY OF CUPERTINO, CALIFORNIA
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 2002
Assets and other debits
Cash and investments (Note 2)
Receivables:
Accounts
Loans (Note 3)
Other assets
Fixed assets (net, where applicable,
of accumulated depreciation) (Note 5)
Advance to other funds (Note 4)
Other debits:
Amount available in debt service fund
Amount to be provided for retirement
of general long-term debt
General
$ 21,217,380 $
1,755,626
2,357,612
70,914
Governmental Fund Types
Special Debt Capital
Revenue Service Projects
5,931,710 $ 5,096,200 $ 8,253,618
171,839 574,838
1,598,851
Total assets and other debits
See accompanying notes to general purpose financial statements.
$ 25,401,532 $ 7,702,400 $ 5,096,200 $ 8,828,456
22
Proprietary Fund Types
Internal
Enterprise Service
8,199,023 $ 2,217,632 $
399,779 9,428
8,000 6,322
761,451 1,912,622
Fiduciary
Fund Types
Agency
Account Groups
General General Totals
Fixed Long-Term (Memorandum
Assets Debt only)
205,562 $ $ $ 51,121,125
2,911,510
3,956,463
85,236
98,444,122 101,118,195
5,096,200 5,096,200
37,273,800 37,273,800
9,368,253 $ 4,146,004 $
205,562 $ 98,444,122 $ 42,370,000 $ 201,562,529
(continued)
23
CITY OF CUPERTINO, CALIFORNIA
Combined Balance Sheet
All Fund Types and Account Groups - Continued
June 30, 2002
Liabilities, equity and other credits
Liabilities:
Accounts payable and accruals
Accraed payroll and benefits
Deposits
Deferred revenue
Advance from other funds (Note 4)
Certificates of Participafion (Note 6)
Total liabilities
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
996,956 $ 558,696 $ 1,250 $ 132,331
1,837,582 63,523
1,051,570
232,808 491,596 354,307
4,118,916 1,113,815 1,250 486,638
Equity and other credits:
Investment in 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
Reserved for advances
Unreserved:
Designated (Note 7)
Undesignated
Total equity and other credits
Total liabilities, equity and other credits
See accompanying notes to general purpose financial statements.
173,547 1,790,658 3,020,513
5,094,95O
2,357,612 1,107,255
1,131,424
1,001,071
16,618,962 1,570,344 1,349,573
2,120,328 3,971,732
21;282,616 6,588,585 5,094,950 8,341,818
$ 25,401,532 $ 7,702,401) $ 5,096,200 $ 8,828,456
24
Proprietar~ Fund T~es
hitemal
Enterprise Service
Fiduciary
Fund TTpes
A~encv
Account Groups
General General Totals
Fixed Long-Term (Memorandum
Assets Debt only)
1,963,137 $ 45,759 $
191,036 740,569
221,214
591,874
205,562
2,967,261 786,328 205,562
$ 3,698,129
2,832,710
1,478,346
1,670,585
42,370,000 42,370,000
42,370,000 52,049,770
382,283
6,400,992 2,977,393
98,444,122
98,444,122
382,283
9,378,385
4,984,718
5,094,950
3,464,867
1,131,424
1,001,071
6,400,992 3,359,676
19,538,879
6,092,060
98,444,122 149,512,759
$ 9,368,253 $ 4,146,004 $
205,562 $ 98,444,122 $ 42,370,000 $ 201,562,529
25
NOTES
26
CITY OF CUPERTINO, CALIFORNIA
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Types
For the Fiscal Year Ended June 30, 2002
Taxes
Use of money and property
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Other revenue
To~irevenues
Expenditures:
Administration
Law entbrcement
Public Intbrmation
Administrative services
Recreation services
Community development
Public works
Capital outlay
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
21,669,162 $ 2,415,256 $ $
1,803,816 292,996 172,823
3,439,123 2,757,921 913,854
1,310,470
454,366 694,369
616,227
111,936 15,250
Totals
(Memorandum
only)
24,084,418
2,269,635
7,110,898
1,310,470
1,148,735
616,227
127,186
29,405,100 6,175,792 172,823 913,854 36,667,569
30,637
2,787,530
1,464,165
5,765,208
707,885
3,284,307
1,858,338
3,646,981
9,178,601
826,807
1,901,358
2,648,320
1,464,165
5,765,208
707,885
3,314,944
1,858,338
4,473,788
11,079,959
5,435,850
. 2,375,000 2,375,000
2,559,973 2,559,973
25,905,485 5,407,122 4,934,973 2,787,530 39,035,110
3,499,615 768,670 (4,762,150) (1,873,676) (2,367,541)
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.
2,825,000 1,827,200 4,711,000 2,533,001) 11,896,200
(9,163,121) (2,630,000) (11,793,121)
(6,338,121) (802,800) 4,711,000 2,533,000 103,079
(2,838,506) (34,130) (51,150) 659,324 (2,264,462)
24,121,122 6,622,715 5,146,100 7,682,494 43,572,431
21,282,616 $ 6,588,585 $ 5,094,950 $ 8,341,818 $ 41,307,969
27
CITY OF CUPERTINO, CALIFORNIA
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual
General, Special Revenue and Debt Service Funds
For the Fiscal Year Ended June 30, 2002
Taxes
Use of maney and property
Intergovernmental
Licenses and permits
Charges for services
Fines and lbrfeitures
Other revenue
Total revenues
Expenditures:
Administration
Law enlbrcement
Public hllbrmation
Administrative services
Recreation services
Community development
Public works
Capital Outlay
Debt service:
Principal
h~terest
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 revanues over (under)
expenditures and other financing sources (uses)
Fund balances, beginning of year
Residual equity transfer
General Fund
Amended Favorable
Budget Actual (UnFavorable)
21,630,000 $ 21,669,162 $ 39,162
1,599,600 1,803,8 l 6 204,216
3,319,041 3,439,123 120,082
1,173,600 1,310,470 136,870
429,100 454,366 25,266
600,000 616,227 16,227
80,000 111,936 31,936
28,831,341 29,405,100 573,759
1,516,325 1,464,I65 52,160
6, I23,181 5,765,208 357,973
707,982 707,885 97
3,364,477 3,284,307 80,170
1,946,332 1,858,338 87,994
4,042,219 3,646,981 395,238
9,573,771 9,178,601 395,170
27,274,287 25,905,485 1,368,802
1,557,054 3,499,615 1,942,561
2,825,000 2,825,000
(9,163,121) (9,163,121)
(6,338,121) (6,338,121)
(4,781,067) (2,838,506)
24,121,122 24,121,122
1,942,561
Fund balances, end ofyear $ 19,340,055 $ 21,282,616 $ 1,942,561
28
Special Revenue Funds
Variance
Amended Favorable Amended
Budset Actual (Unthvorable) Budset
2,450,000 $ 2,415,256 $ (34,744) $
196,000 292,996 96,996 285,000
2,986,205 2,757,921 (228,284)
650,000 694,369 44,369
173,000 15,250 (157,750)
6,455,205 6,175,792 (279,413) 285,000
Debt Service Funds
Actual
Favorable
(Unfavorable)
$ $
172,823 (112,177)
172,823 (112,177)
44,485 30,637 13,848
907,082 826,807 80,275
3,140,758 1,901,358 1,239,400
6,441,424 2,648,320 3,793,104
2,375,000
2,580,700
10,533,749 5,407,122 5,126,627 4,955,700
(4,078,544) 768,670 4,847,214 (4,670,700)
1,827,200
(2,630,000)
1,827,200
(2,630,000)
2,375,000
2,559,973 20,727
4,934,973 20,727
(4,762,150) (91,450)
4,663,000 4,711,000 48,000
(802,800)
(4,881,344)
6,622,715
(802,800)
4,663,000 4,711,000 48,000
(34,130)
6,622,715
4,847,214
(7,700) (51,150)
5,146,100 5,146,100
(43,450)
(43,450)
$ 1,741,371 $ 6,588,585 $ 4,847,214 $ 5,138,400 $ 5,094,950 $
29
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, 2002
Operating revenues:
Charges for services
Other
Totals
Int*rnal (Memorandum
Enterprise Service only)
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Insurance and clai~ns
Depreciation
Total operating expenses
Operating income (loss)
Nonopemting revenues (expenses):
Interest income
Total nonoperating revenues (expenses)
Net income before operating transfers
Operating transfers:
Operating transfers in
Operating transfers out
Net operating transfers
Net income
Retained earnings, beginning of year
Retained earnings, end of year
$ 6,906,465 $ 1,806,969 $ 8,713,434
188,895 188,895
7,095,360 1,806,969 8,902,329
1,539,416 529,178 2,068,594
1,181,220 418,109 1,599,329
3,413,205 250,901 3,664,106
438,762 438,762
90,114 535,853 625,967
6,223,955 2,I72,803 8,396,758
871,405 (365,834) 505,571
361,457 73,875 435,332
361,457 73,875 435,332
1,232,862 (291,959) 940,903
363,921 363,921
(46%000) (467,000)
(467,000) 363,921 (103,079).
765,862 71,962 837,824
5,635,130 2,905,431 8,540,561
$ 6,400,992 $ 2,977,393 $ 9,378,385
See accompanying notes to general purpose financial statements,
30
CITY OF CUPERTINO, CALIFORNIA
Combined Statement of Cash Flows
All Proprietary Fund Types
For the Fiscal Year Ended June 30, 2002
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 used by capital
and related financing activities
Cash flows provided by investing activities:
Interest received
Net cash provided by investing activities
Net increase (decrease) in cash and investments
Cash and investments, beginning of year
Cash and investments, end of year
Totals
Internal (Memorandum
Enterprise Service only)
$ 7,147,172 $ 1,806,258 $ 8,953,430
(4,499,484) (1,108,824) (5,608,308)
(1,544,226) (252,396) (1,796,622)
1,103,462
(467,000)
445,038 1,548,500
363,921 363,921
(467,000)
(467,000) 363,921 (103,079)
(28,993) (465,313) (494,306)
(28,993) (465,313) (494,306)
361,457 73,875 435,332
361,457 73,875 435,332
968,926 417,521 1,386,447
7,230,097 1,800,111 9,030,208
$ 8,199.023 $ 2,217,632 $ 10,416,655
(continued)
31
CITY OF CUPERTINO, CALIFORNIA
Combined Statement of Cash Flows
All Proprietary Fund Types
For the Fiscal Year Ended June 30, 201)2
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 other assets
Decrease (increase) in accounts receivable
Decrease (increase) in prepaid expense
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.
Totals
Internal (Memorandum
Enterprise Service only)
$ 871,405 $ (365,834) $ 505,571
90,114 535,853 625,967
2,395 2,395
(75,371) (9,428) (84,799)
48,024 48,024
124,765 5,270 130,035
(32,930) 276,782 243,852
77,455 77,455
232,057 810,872 1,042,929
1,103,462 $ 445,038 $ 1,548,500
32
NOTES TO GENERAL PURPOSE
FINANCIAL STATEMENTS
33
NOTES
34
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Reporting Emit?
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 Sheriff's 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 include the City's blended component unit,
an entity for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of
the City's operations and so data from this unit is combined with the City.
Blended component unit - The Cupertino Public Facilities Corporation (the
Corporation) was incorporated in May 1986, under the Nonprofit Public Benefit
Corporation Law of the State of California. The Corporation was organized as a
nonprofit corporation for the purpose of assisting the City in the acquisition,
construction, and financing of public improvements which are of public benefit to
the City. The Corporation, after acquiring certain properties from the City, leases
these back to the City. The lease money provides the funds for the debt service
for the Certificates of Participation issued by the Corporation to acquire the
properties. The City Council acts as the Board of Directors of the Corporation.
The Mayor 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.
35
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(1)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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 fund 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
funds are maintained consistent with legal and managerial requirements. Account
groups are a reporting device to account for certain assets and liabilities of the
goverrm~entaI funds not recorded directly in those funds.
The City has the following fund types and account groups:
Governmental funds -- These funds are used to account for the City's general
government activities. Governmental fund types use the flow of current financial
resources measurement focus and use the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when
susceptible to accrual (i.e., when they are both "measurable and available").
"Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current 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 avaiIable if collected within 60 days. Expenditures are recorded
when the related fund liability is incurred, except for unmatured principal and
interest on general long-term debt which is recognized when due.
Property taxes, utility taxes, franchise taxes, interest and special assessments are
susceptible to accrual. Sales taxes collected and held by the state at year end on
behalf of the City are also recognized as revenue. Expenditure-driven grants are
recognized as revenue when the qualifying expenditures have been incurred and
ali other grant requirements have been met. Other receipts and taxes are
recognized as revenue when the cash is received.
36
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(1)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (continued)
Governmental funds include the following fund types:
The general fund is the City's primary operating fund. It accounts for all financial
resources of the City, except those required to be accounted for in another fund.
The special revenue funds account for revenue sources that are legally restricted to
expenditure for specific purposes, excluding major capital projects.
The debt service funds account for the 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.
Proprietary funds -- These funds are accounted for on the flow of economic
resoumes measurement focus and use the accrual basis of accounting. Under this
method, revenues are recorded when earned and expenses are recorded at the time
liabilities 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 fund types:
Enterprise funds are used to account for those operations that are financed and
operated in a manner similar to private business; or where the intent of
management is to recover the costs (including depreciation) of providing
continuing services to the public through user charges; or where management has
decided that the determination of revenues earned, costs incurred andJor net
income is necessary for capital maintenance, public policy or management
accountability.
37
(1)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Measurement Focus, Basis of Accounting and Basis of Presentation (continued)
Internal service funds account for operations that provide services to other City
departments on a cost-reimbursement basis.
Fiduciary fitnds -- 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.
GASB 33 Non-Exchange Transaction - Non-exchange transactions, in which the
City gives or receives value without directly receiving or giving equal value in
exchange, include taxes, grants, entitlements, and donations. On an accrual basis,
revenue from taxes is recognized in the fiscal year for which the taxes are levied
or assessed. Revenue from grants, entitlements, and donations is recognized in
the fiscal year in which all eligibility requirements have been satisfied.
(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 prohibits expending funds for which there is no legal appropriation. All
appropriations lapse at fiscal year end.
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.
38
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(c) Budgetary Practices (continued)
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 $8,375,715 in supplemental appropriations during the year
as follows: general fund $1,730,522; special revenue funds $6,645,193.
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles. 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 warrants.
Investments are stated at fair value.
Interest earned on pooled cash resources is allocated to funds based on the ratio of
the individual funds' monthly cash balance to the total pool.
39
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(1)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e) Fixed Assets
Fixed assets used in the City's governmental fund types are recorded in the
General Fixed Assets Account Group at cost or estimated historical cost if
purchased or constructed. Donated fixed assets are recorded at their estimated
fair value on the date donated. Depreciation is not recorded on general fixed
assets.
Public domain (infrastructure) fixed assets consisting of roads, bridges, curbs,
gutters, streets, sidewalks, drainage 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.
General liability claims and judgments are not mater/al and are not accrued.
(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.
40
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(1)
SUMMARY OF SIGNWICANT ACCOUNTING POLICIES (continued)
(h) Fund Equity
Contributed capital is recorded in proprietary funds that have received capital
grants or contributions fi:om developers, customers or other funds as additions to
fund equity. Reservations of fund balances represent those portions of fund
balances which are not available for appropriation or expenditure or are legally
restricted for a specific future use. Designated fund balances represent
management's tentative plans for future use of financial resources.
(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 alternative 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 remittances 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 fi:om 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.
41
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(1) SUMMARY OF SIGNIFICANT ACCOUNTiNG POLICIES (continued)
(2)
(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.
(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 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 ali funds. Each
fund type's portion of this pool is displayed on the combined balance sheet as "cash and
investments".
42
(2)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June30,2002
CASH AND INVESTMENTS (continued)
(a) Deposits
Califomia law requires banks and savings and loan institutions to pledge
government securities with a market value of 110% of the City's cash on deposit
or first trust deed mortgage notes with a value of 150% of the deposit as collateral
for these deposits. Under California law this collateral is held in the City's name
and places the City ahead of general creditors of the institution. The City has
waived collateral requirements for the portion of deposits covered by federal
deposit insurance.
Cash in banks is entirely insured (Category 1) or collateralized by the institution
holding the deposit (Category 2), as discussed above.
The carrying amount of the City's cash deposits was $450,436 at June 30, 2002.
Bank balances before reconciling items were $444,937 of which $144,937 was
insured (Category 1) at June 30, 2002 and $300,000 was collateralized (Category
2).
(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.
43
(2)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
CASH AND INVESTMENTS (continued)
(b) Investments (continued)
The City's investment portfolio is stated at fair value based on quotes obtained at
June 30, 2002. It is generally the City's intent to hold investments until maturity.
At year end, the City's investment balances were as follows:
Categotw 1 Category 2 Categor~ 3
Certificates of Deposit $40,408 ......
U.S. Treasury Notes $ 7,626,210 ......
U.S. Agency Securities $19,268,271 ......
Repurchase Agreement $2,833,425 ......
Subtotal $29.768.314 $ - 0- $ - _0 -
Investments not subject
to categorization:
Fair
Value
State Local Agency Investment Fund
Money Market Accounts
Cash with Fiscal Agents
Cash Deposits and Petty Cash
Total cash and investments
$40,408
$ 7,626,210
$I9,268,271
$2,833,425
$29,768,314
18,110,377
2,741,724
5,499
495,211
$51.121.12~5
The City is a voluntary participant in the Local Agency Investment Fund (LAW) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the City's investment in this pool is
reported in the accompanying financial statements at amounts based upon the City's pro-
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relations to
the amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Included in LAIF's investment portfolio are collateralized mortgage obligations,
mortgage-backed securities, other asset-backed securities, loans to certain state funds, and
floating rate securities issued by federal agencies, government sponsored enterprises, and
corporations.
44
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(3)
(4)
RELATED PARTY LOAN
In conjunction ~vith the City's executive housing assistance program, loans totaling
$1,535,860 have been provided to three executive managers. These 40-year loans bear an
interest rate equal to the 11th district cost of funds at the time of the loan, and require
monthly principal and interest payments. In addition, there is a two percent deferral on
the interest rate for the first five years of the loan. At June 30, 2002, the balance
remaining on the three loans was $1,479,641.
ADVANCES
As part of the formation of the Redevelopment Agency (RDA) project area, the General
Fund advanced the Redevelopment Vallco Special Revenue Fund $103,100 as of June 30,
2001. This advance was fully repaid in fiscal year 2001-02. However, in order to
reimburse the County of Santa Clara for amounts overpaid to the RDA in 2001-02, the
Redevelopment Vallco Special Revenue Fund will once again need to draw on an
advance from the City in the amount of approximately $1 I0,000 in 2002-03.
45
(5)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
FIXED ASSETS
A summary of changes in general fixed assets follows:
Land
Buildings
Improvements
other than
buildings
Equipment
Construction
in progress
Balance
July 1,2001
$60,835,080
12,280,428
19,062,134
Balance
Additions Deletions June 30, 2002
$ --- $ --- $60,835,080
3,962,188 --- 16,242,616
--- 1,359 1%060,775
1,521,334 144,520 211,714 1,454,140
3,713,I33 851,511 3,713,133 851,511
$97.412.10~9 $~ $3.929.20~66 $98.444.122
The following is a summary of proprietary fund fixed assets:
Enterprise
Land
Improvements
Equipment
Less: accumulated depreciation
Net fixed assets
$ 389,929
635,500
315,375
(579,353)
$ 761.451
Internal Service
4,397,063
(2,484,441)
$1.912.62~2
46
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(6)
LONG-TERM DEBT
The following is a summary of the changes in long-term debt:
Certificates
of Participation
Balance July 1, 2001
$44,745,000
Retirements
(2,375,0O0)
Balance June 30, 2002
$42,370.000
(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.
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 Capital
Improvement Refunding A certificates) to provide for the advance refunding of
the City Hall/Library Certificates of Participation Series 1986.
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
WilsonJMemorial Park Refunding B certificates) to provide for the advance
refunding of the Wilson Park Certificates of Participation Series 1989 (the 1989
certificates), and the Memorial Park Expansion Certificates of Participation Series
1990 (the 1990 certificates).
47
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(6)
LONG-TERM DEBT (continued)
(a) Cupertino Public Facilities Corporation Certificates of Participation (continued)
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 Open Space
Refunding A certificates) to provide for the advance refunding of the Open Space
Certificates of Participation Series (the 1991 certificates). The deferred debt was
fully repaid on March 31, 2001.
The related debt service requirements at June 30, 2001, follows:
1992 Capital Improvement
Refunding A
Fiscal Year Ending June 30
Principal Interest Total
2003 $ 370,000 $ 446,688 $ 816,688
2004 390,000 425,412 815,412
2005 415,000 402,500 817,500
2006 440,000 378,638 818,638
2007 465,000 353,338 818,338
Therea~er 5,680,000 1,762,090 7,442,090
Total
$7.760.00~0 $3.768.66~6 $11.528.66~6
The effective interest on these certificates averages 5.69%.
48
(6)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
LONG-TERM DEBT (continued)
(a) Cupertino Public Facilities Corporation Certificates of Participation (continued)
1992 Wilson/Memorial
Refunding B
Fiscal Year Ending June 30 Principal Interest Total
2003 $ 840,000 $ 485,396 $ 1,325,396
2004 890,000 436,046 1,326,046
2005 945,000 382,646 1,327,646
2006 1,000,000 325,000 1,325,000
2007 1,060,000 262,500 1,322,500
Thereafter 3,140,000 372,500 3,512,500
Total $7,875.000 $2,264,088 $10.139.088
The effective interest rate on these certificates averages 5.98%.
1993 Open Space
Refunding A
Fiscal Year Ending June 30 Principal Interest Total
2003 $ 1,305,000 $ 1,487,682 $ 2,792,682
2004 1,380,000 1,416,338 2,796,338
2005 1,450,000 1,339,375 2,789,375
2006 1,530,000 1,255,513 2,785,513
2007 1,615,000 1,165,094 2,780,094
Thereafter 19,455,000 5,449,419 24,904,419
Total $26.735.00~0 $12.113.42~1 $38.848.42~1
The effective interest rate on these certificates averages 5.62%.
(b) 1915 Act Bonds Without City Commitment
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 not probable that the government would assume
responsibility for all or part of the debt in the event of default. The amount of
unmatured bond principal at June 30, 2002 was $215,000.
49
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(6)
LONG-TERM DEBT (continued)
(c) Conduit Debt
On October 1,2001, the City anthorized the issuance of the multi-family housing
revenue bonds in an amount up to $1.6 million to assist a developer in financing
the cost of site acquisition and construction of a 24 unit multi-family rental
housing project. The bonds are payable solely out of loan repayments received
from the developer. The City has no legal or moral liability with respect to the
payment of this debt.
(d) Subsequent Event
On September 16, 2002, the City authorized the issuance of Certificates of
Participation (2002 Refinancing and Capital Improvement Project) in an amount
of $57 million to refund the 1992 Capital Improvement Refunding A Certificates
of Participation, 1992 Wilson/Memorial Park Refunding B Certificates of
Participation, 1993 Open Space Refunding A Certificates of Participation; and
finance the acquisition and construction of a new public library. Debt service
payments are guaranteed by motor vehicle license fee revenues.
(7) UN2r~SERVED, DESIGNATED FUND BALANCES
The unreserved-designated fund balances include amounts which have been internally
designated to be set aside and are not considered to be available for immediate
appropriation. The components of the unreserved-designated fund balance for the
General Fund at June 30 are as follows:
General Fund:
Economic Uncertainty
Disaster Preparedness
CIP - Future Acquisitions
C1P - Reserve
Special Revenue Funds, Gas Tax Projects
Capital Projects Funds, CIP
2002 2001
$ 2,500,000 $ 2,500,000
7,500,000 7,500,000
5,000,000 5,000,000
1,618,962 2,990,998
1,570,344 1,921,919
1,349,573 1,627,391
Total designated fund balances
$19.538.87~9
$21.540.30~88
50
(8)
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
SEGMENT INFORMATION FOR ENTERPRISE FUNDS
The City operates five enterprise funds that 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, 2001, for each of these funds is as
follows:
Resource Blackbe~y Cupe~ino Recre~ion Senior
Recovery Farm Sports Center Programs Center Total
Oper~ing
revenues $2,381,132 $1,465,032 $1,107,392 $1,688,840 $452,964 $7,095,360
Depreciation 600 88,129 603 --- 782 90,114
Operating income 654,609 110,597 20,621 147,165 (61,587) 871,405
Operating transfers
out --- (175,000) ~-- (242,000) (50,000) (467,000)
Net income (loss) 913,389 (43,597) 37,648 (78,526) (63,052) 765,862
Property &
equipment
additions
21,177 ...... 7,816 28,993
Net working
capital 4,945,380 133,179 431,778 21,701 107,503 5,639,541
Total assets 6,706,708 1,154,801 593,452 545,551 288,760 9,289,272
Total equity 4,946,218 881,728 436,808 21,701 114,537 6,400,992
(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, 2002, have yet to be conducted.
The amount, if any, of expenditures that 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.
51
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(9)
COMMITMENTS AND CONTINGENCIES (continued)
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
2002 $ 120,000
2003 120,000
2004 120,000
2005 120,000
Therea~er 1,320,000
Total future minimum rentals
$1,800.000
As of June 30, 2002, the City was in dispute with its refuse hauler and claimed that it was
owed approximately $1.6 in recycling fees from fiscal years 1989 to 2000. In fiscal year
1999-2000, the City retained other fees not in dispute as partial compensation for the
unpaid recycling fees. This amount has been included as an accrued liability in the
Resource Recovery Ftmd.
On October 4, 2002, a settlement was reached with the refuse hauler, which resulted in a
payment of $1.5 million of these funds by the City to the hauler in exchange for future
rate reductions attributable to the recycling contract.
52
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(10) LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT
The City is self-insured for the first $300,000 of workers' compensation claims per
occurrence. The City provides for excess workers' compensation insurance tkrough an
outside administrator up to $1,000,000. During the fiscal year 1999/00, the City had a
two year analysis performed of its workers' compensation program by an independent
actuary. This resulted in an increase in the City's reserve for unpaid claims of
approximately $5,216. There were no significant reductions in insurance coverage from
the prior year nor did settlements exceed insurance coverage for the past tkree fiscal
years. In addition, the City is self-insured for general and automobile liability claims for
the first $100,000 per occurrence. Excess coverage is provided by the outside
administrator up to $10,000,000. 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'
Compensation
Claims liability, June 30, 2000
Incurred claims
Claim payments/credits
334,770
144,122
(92,906)
Claims liability, June 30, 2001
Incurred claims
Claim payments/credits
$385,986
328,346
(51,520)
Claims liability, June 30, 2001
$662.812
53
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(11) 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 69
retirees participating in the plan as of June 30, 2002.
Retiree medical insurance premium expenses for the past five fiscal years ended June 30,
are as follows:
1998 $162,021
1999 183,330
2000 244,824
2001 299,054
2002 346,202
(12) DEFERRED COMPENSATION PLAN
Due to the passage of the Small Business Job Protection Act (Act) of 1996, and the
issuance of Governmental Accounting Standards Board Statement No. 32 "Accounting
and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
Plans," governmental entities who have established deferred compensation plans under
Internal Revenue Code Section 457 are required to establish trusts to hold plan assets for
the exclusive benefit of plan participants and their beneficiaries. This Act supercedes
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 to hold plan
assets. The value of assets held in trust under Section 457 deferred compensation plans is
approximately $9,152,853 as of June 30, 2002, which have been excluded from the
financial statements.
54
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(13) 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 from the benefit menu by contract with CalPERS and
adopts those benefits through local ordinance. CalPERS issues a separate
comprehensive annual financial report. Copies of the CalPERS' annual financial
report may be obtained from the CalPERS Executive Office, 400 P Street,
Sacramento, CA 95814.
(b) Funding Policy
Active plan members are required to contr/bute 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 fund 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 2001/02 was 0.000%. The contribution
requirements of the plan members are established by State statute and the
employer contribution rate is established and may be amended by CalPERS.
55
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(13) DEFINED BENEFIT PENSION PLA~. (continued)
c) Annual Pension Cost:
For fiscal year 2001/02, the City's annual pension cost and the City's actual
contribution was $619,288. The required contribution for fiscal year 2001/02 was
determined as part of the June 30, 2000 actuarial valuation using the entry age
normal actuariaI cost method with the contributions determined as a percent of
pay. The actuarial assumptions included a) 8.25% investment rate of return (net
of administrative expenses); b) projected salary increases that vary by duration of
service ranging from 3.75% to 14.20% for miscellaneous members and c) no cost-
of-living adjustment. Both (a) and (b) include an inflation component of 3.5%
and a payroll growth of 3.75%. 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 and/or losses. The City of Cupertino's
overfunded actuadally accrued liability is being amortized as a level percentage of
projected payroll on a closed basis. The remaining amortization period at June
30, 2002 was 20 years.
Three year trend information for City of Cupertino:
Annual Percentage
Fiscal Year Pension of APC
Ending Cost (APC) Contributed
6/30/00 $65 ! ,527 100.0%
6/30/01 570,875 100.0%
6/30/02 619,288 100.0%
56
CITY OF CUPERTINO, CALIFORNIA
NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS
June 30, 2002
(14) DEFICIT FUND BALANCE
As of June 30, 2001, the General Fund had advanced to the Redevelopment Agency
(RDA) $103,100 for legal and consulting fees. As the Vallco Agency Project Area was
not formalized until October 19, 2000, such expenditures have resulted in a deficit fund
balance of $90,912 and $77,414 for fiscal year 2000/01 and fiscal year 2001/02
respectively.
(15) SPECIAL ASSESSMENT CLASSIFICATION
During fiscal year 1999/2000, the City reclassified three special assessment debt service
funds to the agency fund when it was discovered that the bond prospectus specifically
stated that the City would not assume responsibility for all or part of the debt in the event
of a default. The restatement moved $370,085 to the Agency Fund Cash and Investments
for fiscal years ending 6/30/00.
As of June 30, 2002, the outstanding balance for these assessment bonds amounted to
$215,000.
57
CITY OF CUPERTINO, CALIFORNIA
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2002
(1) Funding Analysis for CALPERS (in thousands)
Valuation
Date (Most Actuarial Actuarial
recent data Value of Accrued
available) Assets Liability
UAAL
Unfunded/ Annual As a % of
(Overfunded) Funded Covered Covered
Liability Ratio Payroll Payroll
6/30/98 $28,774 $22,734 $(6,039) 126.6% $6,617
6/30/99 34,055 25,154 (8,901) 135.4% 7,167
6/30/00 37,434 29,259 (8,174) 127.9% 7,850
(91.3%)
(124.2%)
(104.1%)
58
GENERAL FUND
The General fund is the general operating fund of the City. It is used to account for all financial
resources except those that are required to be accounted for in another fund.
59
CITY OF CUPERTINO, CALIFORNIA
General Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Receivables:
Accounts
Loans
Other assets
Advance to other funds
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deposits
Deferred revenue
Total liabilities
Fund balances:
Reserved for encumbrances
Reserved for loans receivable
Reserved for 'affordable housing
Reserved for public access television
Reserved for advances
Unreserved:
Designated
Total fund balances
Total liabilities and fund balances
2OO2
21,217,380
1,755,626
2,357,612
70,914
25,401,532
996,956
1,837,582
1,051,570
232.808
4,118,916
173,547
2,357,612
1,131,424
1,001,1)71
16,618,962
21,282,616
25,401,532
2001
23,144,218
2,095,372
2,394,217
129,473
118,748
27,882,028
807,762
1,728,527
1,076,205
148,412
3,760,906
318,303
2,394,217
2,189,711
1,109,145
118,748
i7,990,998
24,121,122
27,882~028
60
CITY OF CUPERTINO, CALIFORNIA
General Fund
Comparative Statements of Revenues, Expenditures and
Changes in Fund Balances
For the Fiscal Years Ended June 30, 2002 and 2001
Revenues:
Taxes
Use of money and property.
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Other revenue
2002
21,669,162
1,803,816
3,439,123
1,310,470
454,366
616,227
111,936
Total revenues
29,405,100
Expenditures:
Current:
Administration
Law enforcement
Public information
Administrative services
Recreation services
Community development
Public works
1,464,165
5,765,208
707,885
3,284,307
1,858,338
3,646,981
9,178,601
Total expenc[~tures
25,905,485
3,499,615
2,825,000
(9,163,121)
(6,338,121)
Excess 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)
(2,838,5O6)
Fund balances, beginning of year
24,121,122
Residual equity transfer
Fund balances, end ofyear
$ 21,282,616
2001
$ 23,596,638
2,694,224
3,255,250
1,230,060
330,509
470,627
132,651
31,709,959
1,387,086
5,351,653
617,894
3,000,095
1,774,484
2,535,745
8,506,268
23,173,225
8,536,734
1,200,000
(13,530,185)
(12,330,185)
(3,793,451)
27,699,320
215,253
$ 24,121.122
61
NOTES
62
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 ali activities related to operating the non-
point source pollution program.
Gas Tax - Accounts for the City's gas tax apportionment revenues and expenditures
related to the maintenance and construction of city streets. All revenue in this fund is
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.
Redevelopment Vallco - Accounts for revenue and expenditures related to the
construction of a redevelopment agency project area at the Vallco Regional Mall.
63
Assets
Cash and investments
Accounts receivable
Loans receivable
Total assets
CITY OF CUPERTINO, CALIFORNIA
Special Revenue Funds
Combining Balance Sheet
June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Storm Park Environmental Gas
Drain Dedication Management Tax
$ 1,502,873$ 188,579 $ 176,166 $ 3,523,716
6,405 803 90 123,128
$ 1,509,278 $ 189,382 $ 176,256 $ 3,646,844
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deferred revenue
Advance from other funds
Total liabilities
$ 1,039 $ $ 18,851 $ 289,279
50,950 12,491
1,039 69,801 301,770
Fund balances:
Reserved for encumbrances
Reserved for loans receivable
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
9,300 6,628
1,774,730
1,570,344
1,498,939 189,382 99,827
1,508,239 189,382 106,455 3,345,074
$ 1,509,278 $ 189,382 $ 176,256 $ 3,646,844
64
Housing Leadership Redevelopmem
Development Cupertino Vallco
Totals
2002 2001
$ 404,550 $ 10 $ 135,816 $ 5,931,710 $ 5,458,224
24,864 16,549 171,839 354,497
1,598,851 1,598,851 1,508,047
$ 2,028,265 $ 10 $ 152,365 $ 7,702,400 $ 7.320,768
$ 6,250 $ $ 243,277 $ 558,696 $ 129,093
82 63,523 57,587
491,596 491,596 392,625
118,748
497,928 243,277 1,113,815 698,053
1,790,658 1,322,411
1,107,255 1,107,255 1,115,422
1,570,344 1,921,919
423,082 10 (90,912) 2,120,328 2,262,963
1,530,337 10 (90,912) 6,588,585 6,622,715
$ 2,028,265 $ 10 $ 152,365 $ 7,702,400 $ 7,320,768
65
CITY OF CUPERTINO, CALIFORNIA
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Taxes
Use of money and property
Intergovernmental
Charges for services
Other revenue
Storm Park Environmental Gas
Drain Dedication Management Tax
$ 52,595 $ 2,338,650 $ $
66,761 4,348 2,136
348,207
149,281
2,144,007
346,162
Total revenues
Expenditures:
Administrative Services
Community development
Publ/c works
Capital outlay
119,356 2,342,998 350,343 2,639,450
$
79,193 334,611 1,487,554
10,I68 2,638,152
Total expenditures
89,361 334,611 4,125,706
Excess (detkiency) of revenues over
(m~der) expenditures
Other £mancmg sources (us6s):
Operating transfers in
Operating transfers out
Net other thnancthg sources (uses)
Excess (deficiency) of revenues
over (under) expenditures and
other financing sources (uses)
29,995 2,342,998 15,732 (1,486,256)
1,817,000
(2,400,000) (230,000)
(2,400,000) 1,587,000
29,995 (57,002) 15,732 100,744
Fund balances, (deficit) beginaing of year
Fund balances, (deticit) end of year
1,478,244 246,384 90,723 3,244,330
1,508,239 $ 189,382 $ 106,455 $ 3,345,074
66
Housing
Development
Leadership
Cupertino
Redevelopment
Vallco
Totals
2002 2001
$ - $
62,338
613,914
676,252
15,250
15,250
$ 24,011
8,132
$ 2,415,256 $ 263,138
292,996 348,389
2,757,921 1,928,706
694,369 657,054
15,250 119,664
32,143 6,175,792 3,316,951
781,166
30,637
45,641
30,637 32,978
826,807 165,143
1,901,358 2372,882
2,648,320 684,113
781z166 30,637 45,641 5,407,122 3,355,116
(104,914) (15,387) (13,498) 768,670 (38,165)
10,200
10,200
1,827,200 2,541,575
(2,630,000) (1,019,080)
(802,800) 1,522,495
(104,914)
1,635251
(5,187)
5,197
(13,498) (34,130) 1,484,330
(77,414) 6,622,715 5,138,385
1,530,337 $
10 $
(90,912) $ 6,588,585 $ 6,622,715
67
CITY OF CUPERTINO, CALIFORNIA
Storm Drain Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Accounts receivable
2002 2001
1,502,873 $ 1,478,244
6,405
Total assets
$ 1,509,278 $ 1,478,244
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Total liabilities
Fund balances:
Reserved for encumbrances
Ur~reserved:
Undesignated
Total fund balances
Total liabilities and fitnd balances
$ 1,039
1,039
$ 9,300
1,498,939
1,508,239
$ 1,509,278
$ 1,478,244
1,478,244
$ 1,478,244
68
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, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002 2001
Variance
Amended Favorable
Budget Actual (Unfavorable)
Actual
Taxes
Use of money and property.
$ 50,000 $ 52,595 $ 2,595 $ 17,655
70,000 66,761 (3,239) 99,177
Total revenues
120,000 119,356 (644) 116,832
80,000 79,193 807
1,175,255 10,168 1,165,087
1,255,255 89,361 1,165,894
(1,135,255) 29,995 1,165,250 116,832
1,478,244 1,478,244 1,361,412
Expenchutres:
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances, beginning of year
Fund balances, end of year
$ 342,989 $ 1,508,239 $ 1,165~250 $ 1,478,244
69
Assets
Cash and investments
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Total liabilities
Fund balances:
Unreserved:
Undesignated
Total fund balances
CITY OF CUPERTINO, CALIFORNIA
Park Dedication Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
2002
2001
$ 188,579 $ 246,384
$ 189,382 $ 246,384
$ 189,382 $ 246,384
70
Revennes:
Taxes
Use of money and property.
Total revenues
Expenditures:
Capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Operating transfers out
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
Park Dedication Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002 2001
Variance
Amended Favorable
Budget Actual (Unfavorable)
Actual
2,400,000 $ 2,338,650 $ (61,350) $ 245,483
4,348 4,348 16,791
2,400,000 2,342,998 (57,002) 262,274
211,652 211,652
211,652 211,652
2,188,348 2,342,998 154,650 262,274
(2,400,00{)) (2,400,000) (675,000)
(211,652) (57,002) 154,650 (412,726)
246,384 246,384 659,110
$ 34,732 $ 189,382 $ 154,650 $ 246,384
71
CITY OF CUPERTINO, CALIFORNIA
Environmental Management Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Advance from other funds
Total liabilities
2002
2001
$ 176,166 $
90 161,070
$ I76,256 $ 161,070
$ 18,851 $ 11,038
50,950 43,661
15,648
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
69,801
6,628
99,827
106,455
176,256
70,347
90,723
90,723
$ 161,070
72
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, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002 2001
Variance
Amended Favorable
Budget Actual (Unfavorable) Actual
Use of money and property
Charges for services
$ 8,000 $ 2,136 $ (5,864) $ 1,776
345,000 348,207 3,207 348,572
Total revenues
353,000 350,343 (2,657) 350,348
Expenditures:
Public works
353,463 334,611 18,852 357,443
353,463 334,611 18~852 357,443
(463) 15,732 16,195 (7,095)
90,723 90,723 97,818
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Fund balances, beginning ofyear
Fund balances, end ofyear
$ 90,260 $ 106,455 $ 16,195 $ 90,723
73
CITY OF CUPERTINO, CALIFORNIA
Gas Tax Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Total liabilities
Fund balances:
Reserved for encumbrances
Unreserved:
Designated
Total fund balances
Total liabilities and fund balances
2002
2001
$ 3,523,716 $ 3,265,208
123,128 92,859
$ 3,646,844 $ 3,358,067
$ 289,279 $ 99,908
12,491 13,829
301,770
1,774,730
1,570,344
3,345,074
113,737
1,322,411
1,921,919
3,244,330
$ 3,646,844 $ 3,358,067
74
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, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002 2001
Amended Favorable
Budget Actual (Unfavorable)
Actual
Revenues:
Use of money and property
Charges for service
Intergovernmental
$ 50,000 $ 149,281 $ 99,281 $ 131,007
305,000 346,162 41,162 308,482
2,499,045 2,144,007 (355,038) 1,857,959
Total revenues
2,854,045 2,639,450 (214,595) 2,297,448
Expenditures:
Public works
Capital outlay
2,707,295 1,487,554 1,219,741 2,115,439
5,054,517 2.638,152 2,416,365 684,113
Total expenditures
7,76L812 4,125,706 3,636,106 2,799,552
Excess (deficency) of revenue
over (under) expenditures
(4,907,767) (1,486,256) 3,421,511 (502,104)
Other financing sources (uses):
Operating transfers in
Operating transfers out
1,817,000 1,817,000 2,536,575
(230,000) (230,000) (344,081))
Total other financing soumes (uses)
1,587,000 1,587,000 2,192,495
Excess (deficiency) of revenues
over (under) expenditures and
other financing sources (uses)
(3,320,767) 100,744 3,421,511 1,690,391
Fund balances, beginning of year
3,244,330 3,244,330 1,553,939
Fund balances, end of year
$ (76,437) $ 3,345,074 $ 3,421,511 $ 3,244,330
75
CITY OF CUPERTINO, CALIFORNIA
Housing Development Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Accounts receivable
Loans receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deferred revenue
Total liabilities
Fund balances:
Reserved for loans receivable
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
2002
2001
$ 404,550 $ 461,627
24,864 68,481
1,598,851 1,508,047
$ 2,028,265 $ 2,038,155
$ 6,250 $ 10,182
82 97
491,596 392,625
497,928
1,107,255
423,082
1,530,337
402,904
1,115,422
519,829
1,635,251
$ 2,028,265 $ 2,038,155
76
Use of money and property
Intergovernmental
Total revenues
Expenditures:
Community development
Total expenditures
Excess (deficency) of revenues
over (under) expenditures
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
Housing Development Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Amended
Budget
2002
Actual
Favorable
(Unfavorable)
2001
Actual
68,000 $ 62,338 $ (5,662) $ 99,638
487,160 613,914 I26,754 70,747
555,160 676,252 121,092 170,385
832,082 781,166 50,916 56,652
832,082 781,166 50,916 56,652
(276,922) (104,914) 172,008 113,733
(276,922) (104,914)
1,635,251 1,635,251
172,008
1,358,329 $ 1,530,337 $ 172,008 $
113,733
1,521,518
1,635,251
77
CITY OF CUPERTINO, CALIFORNIA
Leadership Cupertino Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Fund balances:
Unreserved:
Undesignated
Total liabilities and fund bMances
$
$
2002
l0
2001
$ 6,761
10 $ 6,761
$ 1,564
10 5,197
I0 $ 6,761
78
Other revenue
Total revenues
Expenditures:
Administrative Services
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
Leadership Cupertino Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002 2001
Amended Favorable
Budget Actual (Unfavorable) Actual
31,000 $ 15,250 $ (15,750) $ 21,925
31,000 15,250 (15,750) 21,925
44,485 30,637 13,848 32,978
44,485 30,637 13,848 32,978
(13,485) (15,387) (1,902) (11,053)
10,200 10,200 5,000
(3,285) (5,187) (1,902) (6,053)
5,197 5,197 11,250
$ 1,912 $ 10 $ (1,902) $ 5,197
79
Assets
Cash and investmems
Accoums receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Advances from other funds
Total liabilities
Fund balances:
Unreserved:
Undesignated
Total liabilities and fund balances
CITY OF CUPERTINO, CALIFORNIA
Redevelopment Vallco Special Revenue Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
2002 2001
$ 135,816
16,549 $ 32,087
$ 152,365 $ 32,087
$ 243,277 $ 6,401
103,100
243,277 109,501 ~
(90,912) (77,414)
$ 152,365 $ 32,087
8O
CITY OF CUPERTINO, CALIFORNIA
Redevelopment Vallco Special Revenue Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002
Variance
Amended Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes
Use of money and property
Other revenue
Total revenues
Expenditures:
Community Development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
2001
Actual
24,011 24,011
8,132 8,132
$ 142,000 $ $ (142,000) $ 97,739
142,000 32,143 (109,857) 97,739
75,000 45,641 29,359 108,491
75,000 45,641 29,359 108,491
67,000 (13,498) (80,498) (10,752)
Excess (deficiency) of revenues
over (under) expenditures and
other financing sources (uses)
Fund balances, beginmng of year
Fund balances, end ofyear
67,000 (13,498) (80,498) (10,752)
(77,414) (77,414) (66,662)
$ (10,414) $ (90,912) $ (80,498) $ (77,414)
81
NOTES
82
DEBT SER VICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for and the
payment of general long-term debt, principal, interest and related costs.
Public Facilities Corporation - Accounts for the payments of principal and interest on
certificates of participation issued to provide for the advance refunding of the City
Hall/Library, Wilson Park and Memorial Park certificates of participation.
83
Assets
Cash and investments
Total assets
CITY OF CUPERTINO, CALIFORNIA
Debt Service Funds
Comparative Balance Sheet
June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Public
Facilities Corp.
Totals
2002 2001
$ 5,096,200 $ 5,096,200 $ 5,147,350
$ 5,096,200 $ 5,096.200 $ 5,I47,350
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Total liabilities
1,250 $ 1,250 $ 1,250
1,250 1,250 1,250
5,094,950 5,094,950 5,146,100
5,096.200 $ 5.096,200 $ 5,147,350
Fund balances:
Reserved for debt service
Total liabilities and fund balances
84
Use of money and property
Other
Totalrevenues
Expenditures:
Principal
Interest
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 ofyear
CITY OF CUPERTI1NO, 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, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
2002
Amended
Budget Actual
Favorable
(Unfavorable)
2001
Actual
$ 285,000 $ 172,823 $ (112,177) $ 294,038
285,000 172,823 (112,177) 294,038
2,375,000 2,375,000 2,260,000
2,580,700 2,559,973 20,727 2,684,710
4,955,700 4,934,973 20,727 4,944,710
(4,670,700) (4,762,150) (91,450) (4,650,672)
4,663,000 4,711,000 48,000 4,663,000
(7,700) (51,150) (43,450) 12,328
5,146,100 5,146,100 5,133,772
$ 5,138,400 $ 5,094,950 $ (43,450) $ 5,146,100
85
NOTES
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.
Library Remodel - Accounts for costs associated with consultant's needs assessment and
feasibility study to expand the current library.
Senior Center Expansion - Accounts for activities related to design and construction of
additional space for the Senior Center.
Four Seasons Park - Accounts for activities related to the construction of the Four
Seasons Park located at the southeast comer of DeAnza Boulevard and Stevens Creek
Boulevard.
Sports Center Building - Accounts for activities related to the design and construction of
a new Sports Center.
87
CITY OF CUPERTINO, CALIFORNIA
Capital Projects Funds
Combining Balance Sheet
June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Assets
Cash and investments
Accounts receivable
Total assets
Capital
Improvement Library. Senior Cemer
Projects Remodel Expansion
$ 2,451,675$ 3,532,927 $ 81,819
574,838
$ 3,026,513$ 3,532,927$ 81,819
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Deferred revenue
Total liabilities
$ 38,593 $ 86,540 $ 5,791
354,307
392,901) 86,540 5,791
Fund balances:
Reserved for encumbrances
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
1,284,040 1,725,521 10,952
1,349,573
1,720,866 65,076
2,633,613 3,446,387 76,028
$ 3,026,513 $ 3,532,927 $ 81,819
88
Four Seasons Sports Center
Park Building
$ 557,277 $ 1,629,920$
Total
2002 2001
8,253,618 $ 7,780,724
574,838 343,139
$ 557,277 $ 1,629,920 $ 8,828,456 $ 8,123,863
$ 1,407 $
1,407 $
$ 132,331 $ 188,879
354,307 252,490
486,638 441,369
555,870 1,629,920
555,870 1,629,920
$ 557,277 $ 1,629,920 $
3,020,513 3,168,258
1,349,573 1,627,391
3,971,732 2,886,845
8,341,818 7,682,494
8,828,456 $ 8,123,863
89
CITY OF CUPERTINO, CALIFOR~NIA
Capital Projects Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Revenues:
Intergovernmental
Other revenue
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 financing sources (uses)
Fund balances, beginning of year
Residual equity transfer
Fund balances, end of year
Capital
Improvement Libra .ry
Projects Remodel
$ 913,854 $ $
913,854
1,417,639 1,021,285
(503,785) (1,021,285)
433,000 1,900,000
433,000 1.900,000
Senior Center
Expansion
255,897
(255,897)
(70,785) 878,715 (255,897)
2,704,398 2,567,672 331,925
$ 2,633,613 $ 3.446,387 $ 76 028
90
Four Seasons
Park
Sports Cemer
Buildin~
To~ls
2002 2001
913,854 $
300,000
183,036
33,808
(33,808)
200,000
58,901
(58,901)
913,854
2,787,530
483,036
4,664,265
(1,873,676)
2,533,000
(4,181,229)
6,590,899
(20{),000)
200,000
2,533,000
6,390,899
166,192
389,678
555,870 $
(58,90t)
1,688,821
1,629,920 $
659,324
7,682,494
2,209,670
5,688,077
(215,253)
8,341,818 $
7,682,494
91
CITY OF CUPERTINO, CALIFORNIA
Capital Improvement Projects Capital Projects Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Accounts receivable
Total assets
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Deferred revenue
Total liabilities
Fund balances:
Reserved for encunlbrances
Unreserved:
Designated
Undesignated
Total fund balances
Total liabilities and fund balances
2002
2001
$ 2,451,675 $ 2,796,947
574,838 343,139
$ 3,026,513 $ 3,140,086
$ 38,593 $ 183,198
354,307 252,490
392,900
1,284,040
1,349,573
2,633,613
435,688
936,037
1,627,391
140,970
2,704,398
$ 3,026,513 $ 3,140,086
92
CITY OF CUPERTINO, CALIFORNIA
Capital Improvement Projects Capital Projects Fund
Comparitive Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 2002 and 2001
Intergovernmental
Other
Total revennes
Expenditures:
Capital outlay
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources:
Operating transfers in
Operating transfers out
Net other financing sources (uses)
2002 2001
913,854 $ 300,000
90,649
913,854 390,649
1,417,639 1,776,094
(503,785) (1,385,445)
433,000 2,790,899
(200,000)
433,ooo 2,590,899
Excess (deficiency) of revenues
over (under) expenditures and
other financing sources (uses)
Fund balances, beginning of year
Fund balances, end of year
(70,785)
2,704,398
1,205,454
1,498,944
$ 2,633,613 $ 2,704,398
93
CITY OF CUPERTINO, CALIFORNIA
Library Remodel Capital Projects Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investmems
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
2002
$ 3,532,927 $
$ 86,540 $
1,725,52I
1,720,866
3,446,387
$ 3,532,927 $
200I
2,573,337
5,665
1,999,335
568,337
2,567,672
2,573,337
94
Expenditures:
Capital outlay
CITY OF CUPERTINO, CALIFORNIA
Library Remodel Capital Projects Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 2002 and 2001
Excess (defiency)of revenues
over (under) expenditures
Other financing sources:
Operating transfers in
Excess of other financing
sources over expenditures
Fund balances, beginning of year
Fund balances, end of year
2002
1,021,285
(1,021,285)
1,900,000
878,715
2,567,672
2001
19,301
(19,301)
2,500,000
2,480,699
86,973
$ 3,446,387 $ 2,567,672
95
CITY OF CUPERTINO, CALIFORNIA
Senior Center Expansion Capital Projects Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
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
2OO2
2001
$ 81,819 $ 331,941
$ 5,791 $ 16
10,952
65,076
76,028
230,146
101,779
331,925
$ 81,819 $ 331,941
96
Other
Expenditures:
CITY OF CUPERTINO, CALIFORNIA
Senior Center Expansion Capital Projects Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 2002 and 2001
2002 2001
$ $ 92,387
255,897 2,798,092
(255,897) (2,705,705)
(255,897) (2,705,705)
331,925 3,037,630
Capital outlay
Excess (defiency)of revenues
over (under) expenditures
Excess (deficiency) of other financing
sources over (under) expenditures
Fund balances, beginn/ng of year
Fund balances, end of year
$ 76,028 $ 331,925
97
CITY OF CUPERTINO, CALIFORNIA
Four Seasons Park Capital Projects Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investmems
Liabilities and fund balances
Liabilities:
Accounts payable and accruals
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
2002
2001
$ 557,277 $ 389,678
$ 1,407 $
555,870
555,870
389,678
389,678
$ 557,277 $ 389,678
98
CITY OF CUPERTINO, CALIFORNIA
Four Seasons Park Capital Projects Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 2002 and 2001
Expenditures:
Capital omlay
Excess (defiency)of revenues
over (under) expenditures
Other financing sources:
Operating transfers in
Excess (deficiency.) of other financing
sources over (under) expenditures
Fund balances, beginning of year
Fund balances, end of year
2002
33,808
(33,808)
200,000
166,192
389,678
$ 555,870
2001
389,678
$ 389,678
99
CITY OF CUPERTINO, CALIFORNIA
Sports Center Building Capital Projects Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Cash and investments
Liabilities and fund balances
Fund balances:
Reserved for encumbrances
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
2002 2001
$ L629,920 $ 1,688,821
2,740
1,629,920 1,686,081
1,629,920 1,688,821
$ 1,629,920 $ 1,688,821
I00
CITY OF CUPERTINO, CALIFORNIA
Sports Center Building Capital Projects Fund
Comparative Statements of Revenues, Expenditures
and Changes in Fund Balances
For the Fiscal Years Ended June 30, 2002 and 2001
ExpencYttures:
Capital outlay
Excess (defiency)of revenues
over (under) expenditures
Other financing sources:
Operating transfers in
Excess (deficiency) of other financing
sources over (under) expenditures
Fund balances, beginning of year
Fund balances, end of year
2002 2001
58,901 46,388
(58,901) (46,388)
1,300,000
(58,901) 1,253,612
1,688,821 435,209
$ 1,629,920 $ 1,688,821
101
NOTES
102
ENTERPRISE FUNDS
The Enterprise Funds account for the acquisition, operation and maintenance of governmental
facilities in a manner similar to private enterphses, where the intent of the City is that the costs
(expenses, including depreciation) of providing goods and services to the general public on a
continuing basis be financed or recovered through user charges.
Resource Recovery - Accounts for activity related to the collection and disposal of solid
waste. A private company has been issued an exclusive franchise to perform these
services.
Blackberry Farm - Accounts for activities related to operating the picnic area and golf
course.
Cupertino Sports Center - Accounts for the operation and maintenance of the Cupertino
Sports Facility.
Recreation Programs - Accounts for activities of the City's community center.
Senior Center - Accounts for the activities of the City's senior center.
103
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Balance Sheet
Assets
Current assets:
Cash and investments
Accounts receivable
Prepaid expense
June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Cupertino
Resource Blackben3r Sports
Recovery Farm Center
$ 6,403,235 $ 404,548 $ 585,922
381,616 1,704 2,500
Total current assets
Fixed assets (net of accumulated
depreciation)
6,784,851 406,252 588,422
838 748,549 5,030
Total assets
$ 6,785,689 $ 1,154,801 $ 593,452
Liabilities and equity
Liabilities:
Current liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deposits
Deferred revennes
$ 1,834,522 $ 44,139 $ 32,079
4,949 120,437 9,207
108,497 500
114,858
Total current liabilities
Total liabilities
1,839,471 273,073 156,644
1,839,471 273,073 156,644
Equity:
Retained earnings
4,946,218 881,728 436,808
4,946,218 881,728 436,808
Total equity
Total liabilities and equity
$ 6,785,689 $ 1,154,801 $ 593,452
104
Recreation
Programs
Senior
Center
Totals
2002 2001
$ 537,890 $
7,661
267,428 $ 8,199,023 $ 7,230,097
6,298 399,779 324,408
8,000 8,000 56,024
545,551
281,726 8,606,802 7,610,529
T034 761,451 822,573
$ 545,551 $ 288,760 $ 9,368,253 $ 8,433,102
41,111 $ 11,286 $ 1,963,137 $ 1,838,372
37,836 18,607 191,036 223,966
112,217 221,214 140,460
444,903 32,113 591,874 595,174
523,850 174,223 2,967,261 2,797,972
523,850 174,223 2,967,261 2,797,972
21,701 114,537 6,400,992 5,635,130
21,701 I14,537 6,400,992 5,635,130
545,551 $ 288,760 $ 9,368,253 $ 8,433,102
105
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Operating revenues:
Charges for services
Other
Cupeffino
Resource Blackberry Spoas
Recovery Farm Center
$ 2,370,217 $ 1,361,571 $ 1,032,873
10,915 103,461 74,519
Total operating revenues
2,381,132 1,465,032 1,107,392
127,082 689,620 184,379
8,988 366,369 134,714
1,589,853 210,317 767,075
600 88,129 603
1,726,523 1,354,435 1,086,771
654,609 110,597 20,621
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Interest income
Net nonoperating revenues (expenses)
258,780 20,806 17,027
258,780 20,806 17,027
913,389 131,403 37,648.
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
(175,000)
(175,000)
913,389 (43,597) 37,648
4,032,829 925,325 399,160
$ 4,946,218 $ 881,728 $ 436,808.
106
Recreation Senior
Programs Center
Totals
2002 2001
$ 1,688,840 $ 452,964 $ 6,906,465 $ 6,954,175
188,895 226,051
1,688,840 452,964 7,095,360 7,180,226
483,126 55,209 1,539,416 1,423,552
221,900 449,249 1,181,220 1,144,773
836,649 9,311 3,413,205 3,271,142
782 90,114 77,020
1,541,675 514,551 6,223,955 5,916,487
147,165 (61,587) 871,405 1,263,739
16,309 48,535 361,457 439,798
16,309 48,535 361,457 439,798
163,474 (13,052) 1,232,862 1,703,537
(242,000) (50,000) (467,000) (530,427)
(242,000) (50,000) (467,000) (530,427)
(78,526) (63,052) 765,862 1,173,110
100,227 177,589 5,635,130 4,462,020
21,701 $ 114,537 $ 6,400,992 $ 5,635,130
107
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Cupe~ino
Resource Blackberry Spots
Recove~ Farm Center
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers
for goods and sexvices
Cash payments to employees
2,319,684 $ 1,437,644 $ 1,159,046
(1,485,663) (653,779) (875,873)
(127,082) (689,620) (184,379)
Net cash provided (used) by operating activities
706,939 94,245 98,794
Cash flows from noncapitaI financing activities:
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 financing activities
Cash flows provided by investing activities:
Interest received
Net cash provided by investing activities
Net increase (decrease) in cash and investments
Cash and investmeuts, beginning of year
Cash and investments, end of year
(175,000)
(175,000)
(21,177)
(21,177)
258,780 20,806 17,027
258,780 20,806 17,027
965,719 (81,126) 115,821
5,437,516 485,674 470,101
6,403,235 $ 404,548 $ 585,922
108
Recreation Senior
Programs Cemer
Totals
2002 2001
$ 1,656,731 $ 574,067 $ 7,147,172 $ 7,503,690
(1,033,606) (450,563) (4,499,484) (4,227,743)
(488,823) (54,322) (1,544,226) (1,421,959)
134,302 69,182 1.103,462 1,853,988
(242,000) (50,000) (467,001)) (530,427)
(242,000) (S0,000) (467,000) (530,427)
(7,816) (28,993) (28,383)
(7,816) (28,993) (28,383)
16,309 48,535 361,457 439,798
16,309 48,535 361,457 439,798
(91,389) 59,901 968,926 1,734,976
629,279 207,527 7,230,097 5,495,121
$ 537,890 $ 267,428 $ 8,199,023 $ 7,230,097
(cominued)
109
CITY OF CUPERTINO, CALIFORNIA
Enterprise Funds
Combining Statement of Cash Flows
(continued)
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation
Decrease (increase) in accounts receivable
Decrease (increase) in prepaid expense
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accrued sick leave and vacation
Increase (decrease) in deposits/deferred rev.
Total adjustments
Net cash provided (used) by operating activities $
Resource Blackberry.
Recovery Farm
Cupeffino
Sports
Center
$ 654,609 $ 110,597 $ 20,621.
600 88,129 603
(61,448) (1,704) (2,500)
112,978 (47,404) 26,251
200 (27,985) (335)
(27,388) 54,154
52,330 (16,352) 78,173
706,939 $ 94,245 $ 98,794
110
Recreation Senior
Pro~mms Center
Totals
2002 2001
147,165 $ (61,587) $ 871,405 $ 1,263,739
782 90,114 77,020
(5,304) (4,415) (75,371) 380,334
48,024 48,024 (56,024)
24,943 7,997 124,765 86,612
(5,697) 887 (32,930) 44,983
(26,805) 77,494 77,455 57,324
(12,863) 130,769 232,057 590,249
134,302 $ 69,182 $ 1,103,462 $ 1,853,988
111
Assets
Current assets:
Cash and investments
Accounts receivable
Total current assets
Fixed assets (net of accumulated
depmciation)
Total assets
Liabilities and equity
Liabilities:
Current liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Total current liabilities
Equity.:
Retained earnings
Total liabilities and equity
CITY OF CUPERTINO, CALIFORNIA
Resource Recovery Enterprise Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
2002
2001
6,403,235 $ 5,437,516
381,616 320,168
6,784,851
838
6,785,689
5,757,684
1,438
$ 5,759,122.
1,834,522 $ 1,721,544
4,949 4,749
1,839,471 1,726,293
4,946,218 4,032,829
6,785,689 $ 5,759,122
112
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, 2002 and 2001
Charges for services
Total operating revenue
Operating expenses:
Salaries and benefits
Materials and supplies
Depreciation
Total operating expenses
Operating income
Non-operating revenues (expenses):
Interest income
Total nonoperating revenues (expenses)
Net income
Retained earnings, beginning of year
Retained earnings, end of year
2002
2001
$ 2,370,217 $ 2,568,591
10,915 29,130
2,381,132
127,082
8,988
1,589,853
600
1,726,523
654,609
258,780
258,780
913,389
4,032,829
2,597,721
117,196
2,103
1,671,694
600
1,791,593
806,128
337,688
337,688
1,143,816
2,889,013
$ 4,946,218 $ 4,032,829
113
CITY OF CUPERTINO, CALIFORNIA
Resource Recovery Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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
2002
2,319,684
(1,485,663)
(127,082)
706,939
258,780
965,719
5,437,516
$ 6,403,235
2001
$ 2,957,242
(1,556,155)
(117,196)
1,283,891
337,688
1,621,579
3,815,937
$ 5,437,516
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
Depreciation
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accured sick leave and vacation
Total adjustments
Net cash provided (used) by operating activities
$ 654,609 $ 806,128
600
(61,448)
112,978
200
52,330
706,939
600
359,521
117,697
(55)
477,763
$ 1,283,891
114
CITY OF CUPERTINO, CALIFORNIA
Blackberry Farm Enterprise Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current assets:
Cash and investments
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
Liabilities and equity
Liabilities:
Current liabilities:
Accounts payable and accm',fls
Accrued payroll and benefits
Deposits
Total current liabilities
Equity:
Retained earnings
Total liabilities and equity
$
$
2002
404,548
404,548
748,549
1,153,097
44,139
120,437
108,497
273,073
881,728
1,154,801
$
$
2001
485,674
485,674
815,501
1,301,175
91,543
148,422
135,885
375,850
925,325
$ 1,301,175
115
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, 2002 and 2001
Operating revenues:
Charges for services
Other
Total operating revenue
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses
Operating income (less)
Non-operating revenues (expenses):
Interest income
Net 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
$
$
2002
1,361,571
103,461
1,465,032
689,620
366,369
210,317
88,129
1,354,435
110,597
20,806
20,806
131,403
075,000)
(175,000)
(43,597)
925,325
881,728
$
$
2001
1,578,850
124,200
1,703,050
737,208
502,256
174,428
75,615
1,489,507
213,543
36,988
36,988
250,531
(253,055)
(253,055)
(2,524)
927,849
925,325
116
CITY OF CUPERTINO, CALIFORNIA
Blackberry Farm Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers tbr goods and services
Cash payments to employees
Net cash provided (used) by operating activities
Cash flows from noncapital fi~vancing activities:
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
20O2
1,437,644
(653,779)
(689,620)
94,245
(175,000)
(175,000)
(21,177)
(21,177)
20,806
(81,126)
485,674
2001
1,656,361
(643,896)
(737,208)
275,257
(253,055)
(253,055)
(28,383)
(28,383)
36,988
30,807
454,867
$ 404,548 $ 485,674
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 accraals
Increase (decrease) in accured sick leave and vacation
Increase (decrease) in deposits
Total adjustments
Net cash provided (used) by operating activities
$ 110,597 $ 213,543
88,129
(1,704)
(47,404)
(27,985)
(27,388)
(16,352)
75,615
5,966
26,822
(46,689)
61,714
94,245 $ 275,257
117
Assets
Current assets:
Cash and investments
Accounts receivable
Total curreut assets
Fixed assets (net of accumulated
depreciation)
Total assets
Liabilities and equity
Liabilities:
Currem liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deposils
Deferred revenues
Total current liabilities
Equity:
Retained earnings
Total liabilities and equity
CITY OF CUPERTINO, CALIFORNIA
Cupertino Sports Center Enterprise Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
2002
585,922
2,500
2001
$ 470,101
588,422 470,101
5,O3O 5,634
593,452 $ 475,735
32,079
9,207
5OO
114,858
156,644
436,808
593,452
$ 5,828
9,542
61,205
76,575
399,160
$ 475,735
118
CITY OF CUPERTINO, CALIFORNIA
Cupertino Sports Center Enterprise Fund
Comparative Statements of Revenues, Expenses
and Changes in Retained Earnings
For thc Fiscal Years Ended June 30, 2002 and 2001
Operating revenues:
Charges for services
Other revenues
Total operating revenue
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses
Operating income
Non-operating revenues (expenses):
Interest income
Total nonoperating revenues (expenses)
Income before operating transfers
2002
1,032,g73
74,519
1,107,392
184,379
134,714
767,075
603
1,086,771
20,621
17,027
17,027
37,648
37,648
399,160
Net income
Retained earnings, beginning of year
Retained earnings, end of year
2001
922,423
62,523
984,946
140,657
127,687
591,511
805
860,660
124,286
14,356
14,356
138,642
138,642
260,518
$ 436,808 $ 399,160
119
CITY OF CUPERTINO, CALIFORNIA
Cupertino Sports Center Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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 in cash and investments
Cash and investments, beginning of year
Cash and investments, end of year
2OO2
2001
1,159,046 $ 989,006
(875,873) (753,062)
(184,379) (140,657)
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:
Depreciation
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accured sick leave and vacation
Increase (decrease) in deposits/deferred rev.
Total adjustlnents
Net cash provided by operating activities
98,794 95,287
17,027 14,356
115,821 109,643
470,101 360,458
585,922 $ 470,101
$ 20,621 $ 124,286
6O3
(2,500)
26,251
(335)
54,154
78,173
805
4,060
(28,445)
(1,755)
(3,664)
(28,999)
$ 98,794 $ 95,287
120
CITY OF CUPERTINO, CALIFORNIA
Recreation Programs Enterprise Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current assets:
Cash and investmems
Accounts Receivable
Total Currem Assets
Liabilities and equity
Liabilities:
Current liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deferred revenue
Total current liabilities
Equity:
Retained earnings
Total liabilities and equity
2002
$ 537,890
7,661
545,551
41,111
37,836
444,903
523,850
21,701
$ 545,551 $
2001
629,279
2,357
631,636
16,168
43,533
471,708
531,409
100,227
631,636
121
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, 2002 and 2001
Operating revenues:
Charges for services
Other
Total operating revenue
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Total operating expenses
Operating income
Non-operating revenues (expenses):
Interest income
Total nonoperating revenues (expenses)
Income before operating transfers
Operating transfers:
Operating transfers out
Net operating transfers
Net Income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
2002
1,688,840
1,688,840
483,126
221,900
836,649
1,541,675
147,165
16,309
16,309
163,474
(242,000)
(242,000)
(78,526)
100,227
21,701
2001
1,591,284
3,642
1,594,926
375,878
162,196
830,067
1,368,141
226,785
33,991
33,991
260,776
(275,000)
(275,000)
(14,224)
114,451
100,227
122
CITY OF CUPERTINO, CALIFORNIA
Recreation Programs Enterprise Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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 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
2002
1,656,731
(1,033,606)
(488,823)
134,302
(242,000)
16,309
(91,389)
629,279
2001
1,592,569
(922,038)
(375,878)
294,653
(275,000)
33,991
53,644
575,635
$ 537,890 $ 629,279
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Decrease (increase) in acconnts receivable
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accured sick leave and vacation
Increase (decrease) in deposits/deferred rev.
Total adjustments
Net cash provided by operating activities
$ 147,165 $ 226,785
(5,304)
24,943
(5,697)
(26,805)
(12,863)
18,636
(9,987)
18,378
40,841
67,868
$ 134,302 $ 294,653
123
CITY OF CUPERTINO, CALIFORNIA
Senior Center Enterprise Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current assets:
Cash and investmems
Accounts receivable
Prepaid expense
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
Liabilities and equity
Liabilities:
Current liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Deposits
Deferred revenues
Total liabilities
Equity.:
Retained earnings
Total liabilities and equity
2O02
2001
$ 267,428 $ 207,527
6,298 1,883
8,000 56,024
281,726
7,034
265,434
$ 288,760 $ 265,434
$ 11,286 $ 3,289
18,607 17,720
112,217 4,575
32,113 62,261
174,223
114,537
87,845
177,589
$ 288,760 $ 265,434
124
CITY OF CUPERTINO, CALIFORNIA
Senior Center Enterprise Fund
Comparative Statements of Revenues, Expenses
and Changes in Retained Earnings
For thc Fiscal Years Ended June 30, 2002 and 2001
Operating revenues:
Charges for services
Other revenues
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
Income (loss) before operating transfers
Operating transfers:
Operating transfers out
Net loss
Retained earnings, beginning of year
Retained earnings, end of year
2002
$ 452,964
452,964
55,209
449,249
9,311
782
514,551
(61,587)
48,535
(13,052)
(50,0OO)
(63,052)
177,589
2001
$ 293,027
6,556
299,583
52,613
350,531
3,442
406,586
007,003)
16,775
(90,228)
(2,372)
(92,600)
270,189
$ 114,537 $ 177,589
125
CITY OF CUPERTINO, CALIFORNIA
Senior Center Enterprise Fund
Comparative Statements of Cash Flo~vs
For the Fiscal Years Ended June 30, 2002 and 2001
Cash flows from operating activities:
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees
2002
2001
Net cash provided (used) by operating activities
$ 574,067 $ 308,512
(45O,563) (352,592)
(54,322) (51,020)
Cash flows from capital and related
financing activities:
Purchase of fixed assets
Cash flows from noncapital financing activities:
Operating lransfers 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
69,182
(7,816)
(5O,000)
48,535
59,901
207,527
Operating income (loss)
$ 267,428
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:
Depreciation
Decrease (increase) in accounts receivable
Decrease (increase) in pmpaid expense
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accured sick leave and vacation
Increase (decrease) in deposits/deferred rev.
(95,100)
(2,372)
16,775
(80,697)
288,224
Total adjustments
$ 2O7,527
Net cash provided (used) by operating activities
$ (61,587) $ (107,003)
782
(4,415)
48,024
7,997
887
77,494
130,769
0,883)
(56,024)
1,381
1,593
66,836
11,903
$ 69,182 $ (95,I00)
126
INTERNAL 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.
127
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Balance Sheet
June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Assets
Current:
Cash and investments
Accounts receivable
Other assets
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
Management
Infom~ation Workers' Equipmem
Systems Compensation Revolving
528,384 $ 1,206,635 $ 449,028
2,252 5,119 1,914
530,636 1,211,754 450,942
470,794 1,441,828
1.001,430 $ 1,211,754 $ 1,892,770
Liabilities and equity
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Total liabilities
Eqnity:
Contributed capital
Retained earnings
Total equity
Total liabilities and equity.
29,618 $ 481 $ 16,14I
18,450 662,812 58,826
48,068 663,293 74.967
953,362 548,461
953,362 548,461
382,283
1,435,520.
1,817,803
1,001,430 $ 1,211,754 $ 1,892,770
128
Long-Term
Disability
Totals
2002 2001
33,585 $ 2,217,632 $ 1,800,111
143 9,428
6,322 6,322 8,717
40,050 2,233,382 1,808,828
1,912,622 1,983,162
$ 40,050 $ 4,146,004 $ 3,791,990
$ 45,759 $ 40,489
740,569 463,787
786,328 504,276
382,283 382,283
40,050 2,977,393 2,905,431
40,050 3,359,676 3,287,714
$ 40,050 $ 4,146,004 $ 3,791,990
129
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
For the Fiscal Year. Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
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 (Ioss)
Nonoperating revenues (expenses):
Interest income
Management
Information Workers' Equipment
Systems Compensation Revolvin~
694,600 $ I50,762 $ 894,020
694,600 150,762 894,020
272,772 13,429 242,977
265,603 152,506
163,083 87,818
369,767
209,000 326,853
910,458 383,196 810,154
(215,858) (232,434) 83,866
14,771 50,293 8,178
14,771 50,293 8,178
(201,087) (182,141) 92,044
Total nonoperating revenues
(expenses)
Income (loss) before operating
transfers
Operating transfers:
Operating transfers in
Net operating transfers
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
273,921 90,000
273,921 90,000
72,834 (182,141) 182,044
880,528 730,602 1,253,476
$ 953,362 . $ 548,461 $ 1,435,520
130
Long-Term Totals
Disabili~ 2002 2001
67,587 $ 1,806,969 $ 1,819,975
67,587 1,806,969 1,819,975
529,178 507,645
418,109 448,522
250,901 275,910
68,995 438,762 187,153
535,853 507,179
68,995 2,172,803 1,926,409
(1,408) (365,834) (106,434)
633 73,875 112,904
633 73,875 112,904
(775) (291,959) 6,470
363,921 284,218
363,921 284,218
(775) 71,962 290,688
40,825 2,905,431 2,614,743
$ 40,050 $ 2,977,393 $ 2,905,431
131
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Cash flows from operating activities:
Cash received frown 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
Net cash provided (used) by noncapital financing activities
Cash flows from capital and related financing activities:
Purchase of fixed assets
Net cash used by capital and related financing activities
Cash flows provided by investing activities:
Interest received
Net cash provided by investing activities
Management
Information Workers' Equipment
STstems Compensation Revolvin~
692,348 $ 145,643 $ 900,823
(431,648) (376,006) (225,853)
(273,842) 263,748 (242,302)
(13,142) 33,385 432,668
273,92l 90,000
273,921 90,000
(182,811) (282,502)
(182,811) (282,502)
14,77l 50,293 8,178
14,771 51),293 8,178
Net increase (decrease) in cash and investments
Cash and investments, beginning of year
Cash and investments, end of year
92,739 83,678 248,344
435,645 1,122,957 200,684
528,384 $ 1,206,635 $ 449,028
132
Long-term
Disabili .ty
67,444 $
(75,317)
Totals
2002 2001
1,806,258 $ 1,851,028
(1,108,824) (1,230,815)
(252,396) (58,266)
(7,873)
445,038 561,947
363,921 284,218
363,921 284,218
(465,313) (639,371)
(465,313) (639,371)
633 73,875 112,904
633 73,875 112,904
(7,240) 417,521 319,698
40,825 1,800,111 1,480,413
$ 33,585 $ 2,217,632 $ 1,800AlI
133
CITY OF CUPERTINO, CALIFORNIA
Internal Service Funds
Combining Statement of Cash Flows
(continued)
For the Fiscal Year Ended June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (ioss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
Decrease (increase) in other assets
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accrued payroll and benefits
Total adjustments
Net cash provided (used) by operating activities
Management
Information Workers' Equipment
Systems Compensation Revolving
$ (215,858) $ (232,434) $ 83,866
209,000 326,853
8,717
(2,252) (5,119) (1,914)
(2,962) (6,239) 14,471
(1,070) 277,177 675
202,716 265,819 348,802
$ (13,142) $ 33,385 $ 432,668
134
Long-term
Disabilit~
To~ls
2002 2001
$ (1,408) $ (365,834) $ (106,434)
535,853 507,179
(6,322) 2,395
(143) (9,428) 31,053
5,270 (319,230)
276,782 449,379
(6,465) 810,872 668,381
$ (7,873) $ 445,038 $ 561,947
135
CITY OF CUPERTINO, CALIFORNIA
Management Information Systems Internal Service Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current:
Cash and investments
Accounts receivable
Total current assets
Fixed assets (net of accumulated
depreciation)
Total assets
2002 2001
$ 528,384 $ 435,645
2,252
530,636 435,645
470,794 496,983
$ 1,001,430 $ 932,628
Liabilities and equity
Liabilities:
Accounts payable and accrmfls
Accrued payroll and benefits
Total Liabilities
Equity:
Retained earnings
Total equity
Total liabilities and equity
$ 29,618 $ 32,580
18,450 19,520
48,068 52,100
953,362 880,528
953,362 880,528
$ 1,001,430 $ 932,628
136
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses
Operating (loss)
Nonoperating revenues:
Interest income
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, 2002 and 2001
2002
2000
$ 694,600 $ 654,890
694,600
272,772
265,603
163,083
209,000
910,458
(215,858)
14,771
14,771
(201,087)
273,921
72,834
880,528
654,890
219,808
272,330
171,170
188,228
851,536
(I96,646)
28,842
28,842
(167,804)
236,218
68,414
812,114
Total nonoperating revenues (expenses)
(Loss) before operating transfers
Operating transfers:
Operating transfers in
Net income
Retained earnings, beginning of year
Retained earnings, end of year
$ 953,362 $ 880,528
137
CITY OF CUPERTINO, CALIFORNIA
Management Information Systems Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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 achvities:
Purchase o1' fixed assets
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
2002
2001
692,348 $ 654,890
(431,648) (423,753)
(273,812) (208,269)
(13,142)
273,921
(182,811)
(182,811)
14,771
92,739
435,645
528,384
22,868
236,218
(307,425)
(307,425)
28,842
(19,497)
455,142
$ 435,645
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
$ (215,858) $ (196,646)
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 accured sick leave and vacation
209,000
(2,252)
(2,962)
(1,070)
Total adjustments
202,716
Net cash provided (used) by operating activities
188,228
19,747
11,539
219,514
$ (13,142) $ 22,868
138
CITY OF CUPERTINO, CALIFORNIA
Workers' Compensation Internal Service Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current:
Cash and investments
Accounts receivable
Total current assets
2002
$ 1,206,635
5,119
$ 1,211,754
2001
$ 1,122,957
$ 1,122,957
Liabilities and equity
Liabilities:
Accounts payable and accruals
Accrued payroll and benefits
Total Liabilities
Equity:
Retained earnings
Total liabilities and equity
$ 481 $ 6,239
662,812 386,116
663,293
548,461
392,355
730,602
$ 1,211,754 $ 1,122,957
139
Operating revenues:
Charges for services
Total operating revennes
Operating expenses:
Salaries and benefits
Contractual services
Insurance and claims
TotaI operatiug expenses
Operating income (loss)
Nonoperating revennes (expenses):
Interest income
Total nonoperating revenues
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
CITY OF CUPERTINO, CALIFOR31IA
Workers' Compensation Internal Service Fund
Comparative Statements of Revenues, Expenses
and Changes in Retained Earnings
For the Fiscal Years Ended June 30, 2002 and 201)1
2002
2001
$ 150,762 $ 141,434
150,762
13,429
369,767
383,I96
(232,434)
50,293
50,293.
(182,141)
730,602
$ 548,461
141,434
7,866
127,041
134,9{)7
6,527
74,152
74,152
80,679
649,923
730,602
140
CITY OF CUPERTINO, CALIFORNIA
Workers' Compensation Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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
2002
2001
145,643 $ 141,434
(376,006) (456,074)
263,748 378,250
33,385
50,293
83,678
1,122,957
$ 1,206,635
63,610
74,152
137,762
985,195
$ 1,122,957
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities
Operating income (loss)
$ (232,434) $ 6,527
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accrued payroll and benefits
(5,119)
(6,239)
277,177
Total adjustments
(329,033)
386,116
Net cash provided (used) by operating activities
265,819 57,083
$ 33,385 $ 63,610
141
CITY OF CUPERTINO, CALIFORNIA
Equipment Revolving Internal Service Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current:
Cash and investments
Accounts receivable
Other assets
Total current assets
Fixed assets (net of accumulated
depredation)
Totalassets
2002
$ 449,028
1,914
450,942
1,441,828
2001
$ 200,684
8,717
209,401
1,486,179
$ 1,892,770 $ 1,695,580
Liabilities and equity
Liabilities:
Acconnts payable and accraals
Accrued payroll and benefits
Total Liabilities
Equity:
Contributed capital
Retained earnings
$ 16,141 $ 1,670
58,826 58,151
74,967 59,821
382,283 382,283
1,435,520 1,253,476
1,817,8{)3 1,635,759
1,892,770 $ 1,695,580
Total equity
Total liabilities and equity
142
Operating revenues:
Charges for services
Total operating revenues
Operating expenses:
Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Interest income
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, 2002 and 2001
2002
2001
$ 894,020 $ 965,508
894,020
242,977
152,506
87,818
326,853
810,154
83,866
8,178
8,178
92,044
90,000
182,044
1,253,476
965,508
279,971
176,192
104,740
318,951
879,854
85,654
7,192
7,192
92,846
48,000
140,846
1,112,630
Net nonoperating revenues
Income before operating transfers
Operating transfers:
Operating transfers in
Net income
Retained earnings, beginning of year
Retained earnings, end of year
$ 1,435,520 $ 1,253,476
143
CITY OF CUPERTINO, CALIFORNIA
Equipment Revolving Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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
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
2002
2001
900,823 $ 996,561
(225,853) (290,876)
(242,302) (228,247)
432,668
90,000
90,000
(282,502)
8,178
248,344
200,684
477,438
48,000
48,000
(331,946)
7,192
200,684
$ 449,028 $ 200,684
Reconciliation of operating income to net cash
provided by operating activities
Operating income
$ 83,866 $ 85,654
Adjustments to reconcile operating income (less) to
net cash provided (used) by operating activities:
Depreciation
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable and accruals
Increase (decrease) in accured sick leave and vacation
326,853
6,803
14,471
675
Total adjustments
348,802
Net cash provided by operating activities
318,951
31,053
(9,944)
51,724
144
391,784
$ 432,668 $ 477,438
CITY OF CUPERTINO, CALIFORNIA
Long-Term Disability Internal Service Fund
Comparative Balance Sheets
As of June 30, 2002 and 2001
Assets
Current:
Cash and investments
Accounts receivable
Other assets
Total current assets
Liabilities and equity
Equi .fy:
Retained earnings
Total equity
Total liabilities and equity
2002
$ 33,585
143
6,322
2001
$ 40,825
$ 40,050 $ 40,825
$ 40,050 $ 40,825
40,050 40,825
$ 40,050 $ 40,825
145
Operating revenues:
Charges for services
Operating expenses:
Insurance and claims
Operating income (loss)
Nonoperating revenues (expenses):
Interest income
Total nonoperating revenues
Net income (loss)
Retained earnings, beginning of year
Retained earnings, end of year
CITY OF CUPERTINO, CALIFORNIA
Long-Term Disability Internal Service Fund
Comparative Statements of Revenues, Expenses
and Changes in Retained Earnings
For the Fiscal Years Ended June 30, 2002 and 2001
2OO2
200I
$ 67,587 $ 58,143
68~995
(1,408)
633
633
(775)
40,825
$ 40,050 $
60,112
(1,969).
2,718
2,718.
749
40,076
40,825
146
CITY OF CUPERTINO, CALIFORNIA
Long-Term Disability Internal Service Fund
Comparative Statements of Cash Flows
For the Fiscal Years Ended June 30, 2002 and 2001
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
2002
67,444
(75,317)
(7,873)
633
(7,240)
40,825
2001
58,143
(60,112)
(1,969)
2,718
749
40,076
$ 33,585 $ 40,825
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
Decrease (increase) in other assets
Total adjustments
Net cash provided (used) by operating activities
$ (1,408) $ (1,969)
(6,322)
(143)
(6,465)
$ (7,873)
$ (1,969)
147
NOTES
148
FID UCIAR Y FUNDS
Fiduciary Funds include all agency funds which account for assets held by the City as an agent
for individuals, private organizations, other governmental units and/or other funds.
AGENCY FUNDS
Agency funds are custodial in nature and do not involve measurement of results of operations.
Such funds have no equity since any assets are due to individuals or other entities at some future
time.
Agency - Accounts for all deposits under the control of City departments.
149
CITY OF CUPERTINO, CALIFORNIA
Agency Funds
Combining Balance Sheet
June 30, 2002
(With Comparative Totals for fiscal year ended June 30, 2001)
Assets
Cash and investments
Total assets
Totals
Agency 2002 2001
$ 205,562 $ 205,562 $
$ 205,562 $ 205,562 $
125,394
125,394
Liabilities
Deposits
Total liabilities
$ 205,562 $ 205,562
$ 205,562 $ 205,562
$ 125,394
$ 125,394
150
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, 2002
Balance Balance
June 30, 2001 Additions Deletions June 30, 2002
$ 125,394 $ 120,077 $ 39,909 $ 205~562
$ 125,394 $ 120,077 $ 39,909 $ 205,562
151
NOTES
152
GENERAL FIXED ASSETS
ACCOUNT GROUP
The General Fixed Assets Account Group is used to account for the control and valuation of
capital assets owned by the City. These assets are recorded as expenditures of the various
governmental funds during the year and are annually recorded in the General Fixed Assets
Account Group at cost. Improvements 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.
153
CITY OF CUPERTINO, CALIFORNIA
Comparative Schedules of General Fixed Assets - By Source
As of June 30, 2002 and 2001
General fixed assets:
Land
Buildings
Improvements other than buildings
Equipment
Construction in progress
Total general fixed assets
Investment in general fixed 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 fixed assets
20O2
60,835,080
16,242,616
19,060,775
1,454,140
851,511
98,444,122
43,833,933
8,009,419
4,601,486
3,581,105
573,829
25,117,730
882,977
240,543
229,123
1,847,747
6,704,208
2,822,022
98,444,122
2001
$ 60,835,080
12,280,428
19,062,134
1,521,334
3,713,133
$ 97,412,109
$ 43,956,295
8,009,419
4,601,486
3,579,809
573,829
23,967,651
882,977
240,543
229,123
1,844,747
6,704,208
2,822,022
$ 97,412,109
154
Function and activiW
Adminis~ative se~ices
city hau
Cit~ manager
Community services
Community developmant
Cable television
Total general government
Public safety:
Code enlbrcement
Other:
Public works
Parks
Engineering
Total other
Total general fixed assets
CITY OF CUPERTINO, CALIFORNIA
Schedule of General Fixed Assets - By Function and Activity
June 30, 2002
other than
Land Buildings buildings Equipment
Construction
In progress
Total
$ 489,130 $ $ 73,091
90,000 3337379 1,363,342 116,843
335,112 395,942 578
24,238
1,800,000 6,636
436,072
2,225,112 4,322,551 1,363,342 657,458
$ 562,221
5,007,664
731,632
24,238
1,806,636
436,072
8,568,463
116,348
116,348
506,863 4,978,678 2,562,710 295,918
58,103,105 6,941,387 15,134,723 332,988
51,428
58,609,968 11,920,065
60,835,080 $ 16,242,616
851,511
9,195,680
80,512,203
51,428
17,697,433 680,334 851,511 89,759,311
19,060,775 $ 1,454,140 $ 851,511 $ 98,444,122
155
CITY OF CUPERTINO
Schedule of Changes in General Fixed Assets - By Function and Activity
As of June 30, 2002 and 2001
Function and activity
General government:
Administrative services
City hall
City manager
Com~mmity services
Community development
Cable television
Total general government
Public safety:
Cede enforcement
Other:
Public works
Parks
Engineering
Total other
Total general fixed assets
General General
Fixed Assets Fixed Assets
June 30, 2001 Additions Deletions June 30, 2002
622,370 $ 3,199 $ 63,348$ 562,221
4,952,700 54,964 5,007,664
731,632 731,632
23,345 6,654 5,761 24,238
1,803,830 4,017 1,211 1,806,636
417,730 31,791 13,449 436,072
8,551,607 100,625 83,769. 8,568,463
109,151 7,197 II6,348
8,138,445 4,840,162 3,782,927 9,195,680
80,542,823 6,239 36,859 80,512,203
70,083 3,996 22,651 51,428
88,751,351 4,850,397 3,842,437 89,759,31l
$ 97,412 109 $ 4,958,219. $ 3,926,206 $ 98,444 122
156
S TA TIS TICAL SE CTION
157
CITY OF CUPERTINO
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
Table 1
Fiscal Law Public Administrative Recreation Community
Year Administration Enforcement Information Services (2) Services Development
1993 $538,465 $3,705,059 $371,661 $1,423,349 $I,436,528 $1,517,568
1994 $600,891 $3,501,523 $424,636 $1,465,708 $1,509,808 $I,399,637
1995 (3) $692,704 $3,769,584 $472,633 $1,549,162 $1,004,116 $2,859,582
1996 $809,492 $4,123,214 $513,106 $1,817,122 $l,045,300 $1,580,017
1997 $854,531 $4,118,027 $537,268 $1,750,575 $1,121,666 $1,608,010
1998 $856,836 $4,393,319 $590,667 $1,991,328 $1,164,822 $1,850,490
I999 $1,133,408 $4,892,704 $631,035 $2,008,976 $1,363,410 $2,101,942
2000 $1,242,310 $4,693,565 $796,458 $2,410,754 $1,536,152 $2,349,874
2001 $1,387,086 $5,351,653 $617,894 $3,033,073 $l,774,484 $2,700,888
2002 $1,464,165 $5,765,208 $707,885 $3,314,944 $1,858,338 $4,462,273
Note:
(1) Includes General, Special Revenue, Debt Service and Capital Project Funds. (Does not
include other financing uses).
(2) Beginning in 1993 the lease payments in Administrative Services have been reallocated
to the Debt Service column.
(3) Excludes losses from sales of investments of $570,085 in 1995.
(4) Beginning in 1999 the debt service for 1915 Act and special assessment debt were excluded
from these tables as it was determined that the City has no obligation for the debt.
Source: City Administrative Services
158
Public Capital Debt
Works Outlay Service (4) Total
$4,999,412 $905,858 $5,560,835 $20,458,735
$5,319,244 $1,769,875 $10,055,907 $26,047,229
$6,759,807 $1,683,213 $6,206,507 $24,997,308
$6,209,090 $5,005,071 $6,196,680 $27,299,092
$6,786,574 $1,234,165 $7,125,413 $25,136,229
$9,047,794 $4,412,291 $5,193,242 $29,500,789
$9,167,386 $8,059,124 $5,178,897 $34,536,882
$12,480,766 $3,404,088 $4,953,360 $33,867,327
$10,979,150 $5,348,378 $4,944,710 $36,137,316
$11,079,959 $5,435,850 $4,934,973 $39,023,595
159
CITY OF CUPERTINO
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)'
LAST TEN FISCAL YEARS
Table 2
Fiscal Use of Money Inter- Licenses& Charges Fines and Other
Year Taxes (2) and Property governmental Permits (3) for Services Forfeitures Revenue Total
1993 $13,757,203 $2,365,420 $3,350,306 $1,660,878 $174,602 $808,085 $22,116,494
1994 $14,339,558 $1,622,393 $3,076,844 $1,680,307 $174,626 $226,714 $21,120,442
1995 $14,363,104 $2,490,794 $5,605,848 $1,924,429 $202,055 $456,413 $25,042,643
1996 $18,626,169 $2,417,589 $4,660,903 $2,241,106 $193,720 $I,320,878 $29,460,365
1997 $18,182,889 $2,671,812 $2,903,880 $2,077,637 $205,366 $792,679 $26,834,263
1998 $20,447,603 $2,776,441 $3,602,596 $2,366,376 $241,293 $1,146,454 $30,580,763
1999 $18,837,091 $3,114,595 $5,650,954 $2,578,015 $503,223 $475,266 $31,159,144
2000 $23,587,459 $2,866,012 $4,807,077 $l,359,949 $887,907 $524,057 $737,066 $34,769,527
200I $23,859,776 $3,336,651 $5,483,956 $1,230,060 $987,563 $470,627 $435,351 $35,803,984
2002 $24,321,923 $2,262,622 $7,205,476 $I,310,470 $993,890 $616,227 $127,186 $36,837,794
Note:
(1) Includes General, Special Revenue, Debt Service and Capital Projects Funds. (Does not include
other financing sources.)
(2) Beginning in 1999 the debt service for 1915 Act and special assessment debt were excluded
from these tables as it was determined that the City has no obligation for the debt.
(3) Prior to the fiscal year ended June 30, 2000, revenues derived from Licenses and Permits were included
as Charges for Services.
Source: City Administrative Services
160
CITY OF CUPERTINO
ASSESSED AND ESTIMATED ACTUAL VALUES OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Table 3
Total Estimated
Fiscal Tot~ Assessed Full Market
Year Secured Exemptions Unsecured V~uation Valuation
1993 $4,242,090,997 $61,714,800 $584,295,328 $4,888,101,125 $4,888,101,125
1994 $4,506,162,220 $62,637,400 $605,453,614 $5,174,253,234 $5,174,253,234
1995 $4,563,933,460 $64,604,400 $550,201,549 $5,178,739,409 $5,178,739,409
1996 $4,585,406,820 $65,248,400 $470,880,987 $5,121,536,207 $5,121,536,207
1997 $4,730,865,467 $66,172,400 $440,005,909 $5,170,871,376 $5,298,764,322
1998 $5,078,070,121 $57,445,281 $452,549,925 $5,538,936,459 $5,538,936,459
1999 $5,591,299,195 $67,859,400 $443,973,509 $6,043,669,471 $6,043,669,471
2000 $6,045,504,382 $73,148,676 $500,020,465 $6,553,278,115 $6,553,278,115
2001 $6,986,833,015 $67,242,848 $416,844,493 $7,407,208,836 $7,407,208,836
2002 $7,836,349,904 $82,089,594 $634,624,124 $8,562,981,335 $8,562,981,335
Source: County of Santa Clara, Department of Finance
161
CITY OF CUPERTINO
PROPERTY TAX RATEs - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
Table 4
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Couuty 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
County Bond ..............................
County Retirement 0.038 0.031 .0332 .0338 .0341 .0388 .0388 .0388 .0388 .0388
Libra~yRetiremem 0.002 0.002 .0024 .0024 .0024 .0024 .0043 .0043 .0043 .0043
Cupertino City Bond ..............................
Elemand/or UnifSchBonds ......... .0182 .0303 .0292 .0247 .0247 .0247 .0247
High School Bonds 0.001 ...........................
Junior College Bonds 0.00I ...........................
Loaa~ Repay-Cupertino ..............................
Cupertino San Dist-Bond 0.001 ...........................
SCVWD-StateWater Proj 0.010 0.009 .0092 .0072 .0076 .0076 .0053 .0053 .0053 .0053
SCVWD-ZoneW-I Bond 0.003 0.003 .0023 .0026 .0026 0.002 0.002 0.002 0.002 0.002
TOTALS 1.056 1.045 1.047 1.064 1.077 1.080 1.075 1.075 1.075 1.075
Source: County of Santa Clara Annnal Tax Increment Tables
162
Taxpayer
Hewlett Packard
Compaq Computers
Apple Computer
Cupertino Property Limited
Cupertino City Center
Sumitomo Bank
Teachers Insurance & Annuity
Irvine Apartments
RWC LLC
Ridgeview Court Associates
CITY OF CUPERTINO
PRINCIPAL TAXPAYERS
JUNE 30, 2002
Table 5
Type of Business
Electronic Equipment
Electronic Equipment
Electronic Eqnipment
Land Developer
Land Developer
Financial
Commercial
Residential
Industrial
Indnstrial
2001-02
Assessed
Valuation
$373,207,639
$241,459,882
$135,359,062
$85,540,000
$73,122,085
$71,987,258
$64,503,727
$61,658,232
$61,628,310
$54,573,444
$1,223.039.639
Percentage of
Total Assessed
Valuation
4.71%
3.05%
1.71%
1.08%
0.92%
0.91%
0.81%
0.78%
0.69%
0.69%
15.44%
Source: The HdL Compames
163
CITY OF CUPERTINO
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 2002
Table 6
Total Assessed Valnation
$8,562,981,335
Debt limit - 15 percent of Total Assessed Valnation $1,284,447,200
Less - ontstm~ding bonded debts
$1,284,447,200
Legal debt margin
Source: County of Santa Clara and City Administrative Services
164
CITY OF CUPERTINO
RATIO OF GENERAL BONDED DEBT TO ASSESSED
VALUE AND BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Table 7
Fiscal Assessed Generfl Bonded Debt
Year Population Value Bonded Debt Per Capka
1993 41,827 $4,888,101,125 $20,000 0.48
1994 42,441 $5,174,253,234 ......
1995 43,489 $5,178,739,409 ......
1996 43,627 $5,121,536,207 ......
1997 44,775 $5,298,764,322 ......
1998 46,682 $5,538,936,459 ......
1999 50,000 $6,043,669,471 ......
2000 52,000 $6,553,278,115 ......
2001 50,546 $7,407,208,836 ......
2002 50,546 $8,562,981,335 ......
Ratio of General
Bonded Debt to
Assessed Value
0.000004
Source: County of Santa Clara and City Administrative Services
165
CITY OF CUPERTINO
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED
DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
Table 8
Fiscal
Year
1993
1994
I995
(2)
1996
1997
1998
I999
2000
2001
2002
Principal Interest
$20,000 $1,500
$20,000 $500
Total Debt Total General
Service Expenditures(l)
$21,500 $20,458,735
$20,500 $26,047,229
-~- $24,997,308
$27,299,092
$25,136,229
$29,500,789
$34,536,882
$33,867,327
$36,137,316
$39,035,110
Ratio of Debt
To General
Expenditures
0.0011%
0.0008%
(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
166
CITY OF CUPERTINO
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Table 9
School
Fisc~ Me~anAge Enrollment
Year Population (1) Years(2) Grades 9-12 (3)
1993 41,827 36.0 7,066
1994 42,441 36.0 6,969
1995 43,489 36.0 6,969
1996 43,627 N/A 8,199
1997 44,775 N/A 8,380
1998 46,682 N/A 8,380
1999 50,000 N/A 8,762
2000 52,000 N/A 8,822
2001 50,546 N/A 8,822
2002 50,546 N/A 9,063
Source: (I) City Administrative Service (2) Cupertino Chamber of Commerce
(3) Fremont Umon High School District
(4) Department of Employment Statistics
Unemployment
Rate (4)
4.4%
3.8%
3.8%
2.2%
1.8%
1.7%
1.9%
1.3%
2.4%
4.6%
167
CITY OF CUPERTINO
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN YEARS
Table 10
Fiscal
Year
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Property Commercial
Value (1) Residential Construction (2) Construction (2)
Assessed Number
Valuation of Units~ Value Value
$4,888,101,125 17 $9,055,055 ---
$5,174,253,234 30 $7,579,919 ---
$5,178,739,409 1 i8 $24,626,353 ---
$5,121,536,207 126 $23,423,228 $271,222
$5,298,764,322 521 $51,I29,923 $31,775,355
$5,538,936,459 578 $62,019,693 $45,254,694
$6,043,669,471 125 $42,771,247 $7,476,590
$6,553,278,115 207 $72,983,009 $9,092,350
$7,407,208,836 83 $22,251,562 $3,000,000
$8,562,981,335 72 $17,674,435 $20,109,541
Source: (1) County of Sm~ta Clara, Department of Finance (2) City Building Department
(3) Findley Reports
168
COMMUNITY
PR OFILE
169
NOTES
170
-- Cupertino owes its name and earliest mention in recorded history to the 1776 expedition led by the Spaniard, Don Juan
Bautista de Anza, from Sonora, Mexico to the Port of San Francisco to found the presidio of St. Francis.
-- Leaving the majority of the party of men, women, and children in Monterey to rest from their travels, deAnza, 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 Cupertino in honor of his patron, San Guiseppe (San Joseph) of Cupertino, Italy. The arroyo is now known as
Stevens Creek.
The village of Cupertino sprang up at the crossroads of Saratoga-Sunnyvale Road (now DeAnza Boulevard) and Stevens
Creek Boulevard. It was first known as West Side; but, by 1898 the post office at the Crossroads needed a new name to
distinguish it from other similarly named towns. John T. Doyle, a San Francisco lawyer and historian, had given the name
Cupertino to his winery in recognition of the name bestowed on the nearby creek by Petrus Font. In 1904 the name was
applied to the Crossroads and to the post office when the Home Union Store incorporated under the name, The Cupertino
Stores, Inc.
Many of Cupertino's pioneer European settlers planted their land in grapes. Vineyards and wineries proliferated on
Montebello Ridge, on the lower foothills, and on the flat lands below.
171
After I906 a lot more than grape growing was going on in Cupertino. Orchards were thriving and new businesses were
being started. 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
Ieaders 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 Incorporation was approved in the 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, six sold to Varian Associates, a thriving young electronics firm, founded by Russell Varian, and t~vo opted for
transplanting to farms elsewhere. The name Vallco was derived from the names of the principal developers: Varian
Associates and the Leonard, Lester, Craft, and Orlando families.
172
2002
-- The City of Cupertino, high-tech heart of Silicon Valley, was
born from a community of farmers. In 1955, when Cupertino
officially became the 13th city in Santa Clara County, its
-- population was about 2,000 and its geographical area
encompassed 3.76 square miles.
Today, with a population numbering more than 50,000 and city
limits stretching across 11 square miles, Cupertino is considered
to be one of the San Francisco Bay Area's most prestigious cities
in which to live and work.
Among the many factors that make Cupertino so desirable are the
_ city's highly acclaimed educational programs, its vibrant
business environment, its convenient access to major
transportation systems and its attractive well-planned
neighborhoods.
Schools in Cupertino are operated by the Cupertino Union School District (CUSD) that serve students from kindergarten
through 8th grade in several different cities, and the Fremont Union High School District (FUHSD), which operates five
high schools in Cupertino and nearby cities. Twenty elementary schools and four middle schools are under the CUSD
umbrella. Nationally recognized for its innovative use of technology to enrich student learning, the district's reputation
reaches around the world.
One of California's premiere community colleges is also located in Cupertino. DeAnza College serves nearly 25,000
students per quarter. The college operates a planetarium and an Advanced Technology Center, where training in math,
physics, computers and programming is offered. In addition, one of the area's leading performing arts facilities, the Flint
Center, is located on the DeAnza College campus.
As home to many well-known high-tech companies, Cupertino offers a dynamic and exciting business climate. Apple
Computer is headquartered in the city along with Portal Software. In addition, key divisions of Compaq Computer,
Hewlett-Packard, Sun Microsystems and Honeywell-Measurex are also located in Cupertino.
The City's proactive economic development efforts have resulted in a number of innovative, mutually beneficial
partnerships with local companies. The City strives to retain and attract local companies through policies of balanced
growth and streamlined permitting.
Residents and visitors can browse in a variety of small specialty shops at Vallco Fashion Park. The mall includes Macy's,
?enney's and Sears as anchors and features popular chain stores such as Victoria's Secret, Express and Natural Wonders.
Shoppers can also enjoy iceskating at the mall's ice skating rink.
There's more to a community than its schools, its businesses and its quality of life. A community is people. And,
Cupertino's people come from all over the world. The city prides itself on being a diverse community and appreciates
the cultural differences that make each resident individual and unique. Cupertino has become a place that people are
proud to call home.
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of Force
Population in County
Total Taxable Sales - Cotmty
Population in City Limits
Total Taxable Sales - City
Occupied Dwellings - City
School Enrollment K-8
School Enrollment 9-12
Median Income - County
Median Income - State
Median Age
Economic Growth & Trends
1997 1998 1999 2000
1,612,258 1,671,400 1,647,419 1,682,585
25,257,736 25,793,716 27,488,815 35,683,007
43,627 44,800 45,095 50,546
8,218,233 7,546,163 1,412,000 1,106,635
15,707 17,065 17,417 18,204
14,877 15,240 15,313 15,200
8,380 8,762 8,822 9,063
59,639
39,595
39
Non-Manufacturing Employment
Company
Cupertino Union School District
Foothill/DeAnza Community College
Fremont Union High School District
Sears
Target
JC Penney
PG&E
Mervyns
Employment
1,500
1,200
735
294
270
2OO
167
135
Product
Education
Education
Education
Retail
Retail
Retail
Gas/Electric
Retail
Manufacturing Employment
Company Employment
Product
Apple Computer 6,000
Hewlett-Packard 4,682
Compaq 2,500
Symantec 400
Honeywell-Measurex 220
Computers
Computers
Computers
Software
Process
Controls
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2002 City
The City of Cupertino 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.
Municipal services are provided by the City's 154 full time benefited employees. City departments include administrative
services (finance, human resources, IT, city clerk, outreach programs, and economic development); community
development (planning and building); parks and recreation; public works (engineering, maintenance, transportation, and
environmental); and public information. Police service is contracted through the County of Santa Clara and fire service is
provided through Santa Clara County Fire District.
Assisting the city council are several citizen advisory commissions/committees which include housing,
telecommunications, fine arts, library, planning, audit, 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 the
positions. Residents are kept informed about city services and programs through the Cupertino Scene, a monthly
newsletter; Cupertino's government access cable TV channel; The City Channel; and the city's website.
Housing
Rentals for one and two bedroom apartments and duplexes
range from $1,100 to $2,100 per month. Rent for a two
bedroom house ranges from $2,200 to $3,250 per month.
The average price of existing single family homes is
$946,485 as of June 2001. The average
condominium/townhouse sale price is $509,390.
Community ~Iealth Care Facilities
Cupertino is served by the Cupertino Medical Clinic,
NovaCare Occupational Health Services. Nearby hospitals
include El Camino Hospital in Mountain View, O'Connor
Hospital in San Jose, San Jose Hospital, Community
Hospital of Los Gatos, Kaiser Permanente Medical Center
in Santa Clara, Stanford Hospital in Palo Alto, and the
Saratoga Walk-in Clinic in Saratoga.
Utilities
Natural gas and electric - Pacific Gas and Electric
Company, (800) 743-5000.
Telephone - Pacific Bell. For residential service call (800)
894-2355; for business service call (800) 750-2355.
Cable - AT&T Broadband, (800) 945-2288.
Garbage - Los Altos Garbage, (408) 725-0420.
Water - San Jose Water Company (408) 279-7900 and
California Water (650) 917-0152.
Sewer Service - Cupertino Sanitary District (408) 253-7071
Tax Rates and Government Services
Residential, commercial, and industrial property is
appraised at full market value 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.
Retail Sales Tax: Santa Clara County District: 1%; Local:
1%; State: 6%; County: 25%; Total: 8.25%.
Assessed Valuation: (Secured and Unsecured)
Cupertino: $7,332,095,101 (2000)
County: $172,917,361,122 (2000)
Transportation
Rail - Southern Pacific, San Jose to San Francisco, with
spur line in Cupertino.
Air - Seven miles north of San Jose International Airport;
32 miles south of San Francisco airport.
Bus - Santa Clara County Transit Systems, Greyhound bus
lines
Highways - Interstate Route 280, State Route 85, US 101,
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Library
Blackberry Farm
Cupertino Library has the highest circulation among the
members of the Santa Clara County Library system. It
holds a collection of more than 308,000 volumes, as well
as periodicals, compact discs, audio and video cassettes,
CD-ROM's and DVD's.
The library is open seven days a week: Monday through
Thursday 10-9, Friday and Saturday 10-6, Sunday I2-6.
For more information call (408) 446-1677. Cupertino
Library is located at 10400 Torte Avenue, next to City
Hall.
Cupertino Senior Center
This 33 acre recreational facility offers two large
swimming pools, softball field, basketball courts,
volleyball courts, horseshoe pits, and a nine hole golf
course. The picnic grounds are located at 21975 San
Femando Avenue and the golf course is located at 22100
Stevens Creek Boulevard. Telephone: (408) 777-3140.
Blackberry Farm Retreat Center is a 2,000 square foot
house that overlooks the picnic grounds and golf course.
The center has one large conference room that will
accommodate up to 25 people. The retreat center is
located at 21979 San Femando Avenue. Telephone:
(408) 777-3140.
Adults over age 50 can find a full calendar of
opportunities for learning, volunteering, and enjoying
life. There are exercise classes (over 30 hours a week), a
computer lab and classes, language instruction including
English as a second language, and cultural and special
interest classes.
The Senior Center is located at 21251 Stevens Creek
Boulevard at Mary in Memorial Park and is open
Monday through Friday 8 a.m. to 5 p.m.
The Quinlan Community Center
The City of Cupertino's Quinlan Community Center is a
27,000 square foot facility that provides a variety of
recreational opportunities. Most prominent is the
Cupertino Room which is a multi-purpose room that can
accommodate 300 people in a banquet format. The
Quinlan Center is also home to the Cupertino Historical
Society. For more information, call (408) 777-3120.
Cupertino Sports Center
Cupertino Sports Center is a great place to meet friends.
The facility features 17 tennis courts (12 lighted),
complete locker room facilities, saunas, Jacuzzis, and a
fully equipped fitness center featuring free weights,
Cydesc, and cardio equipment. The center is located at
the comer of Stevens Creek Boulevard and Stelling
Road. Telephone: (408) 777-3160.
Memorial Park
Attractions at the 28-acre park include acres of lawn
ideal for family picnics, a lake, and six lighted tennis
courts, as well as the Senior Center. Also, an
amphitheater, lighted softball field, gazebo, and picnic
areas are available for general enjoyment or rental. The
park is located at Stevens Creek Boulevard and Mary
Avenue. Telephone: (408) 777-3120.
McClellan Ranch Park
A horse ranch during the 1930's and 40's, this 18-acre
park has the appearance ora 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, and the
old water tower from the Parish Ranch, now the site of
Memorial Park. Also at McClellan Ranch are corrals
where Roiling 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. McClellan Ranch is located at 22221
McClellan Road. Telephone: (408) 777-3120.
176
Winner of numerous state and national awards for excellence, our
City's schools are widely acknowledged to be models of quality
instruction.
Cupertino Union School District serves 15,700 students in a 26 square
mile area that includes Cupertino and portions of five other cities. The
district has 20 elementary schools and four middle schools, including
several choice programs. Eighteen schools have received state and/or
national awards for educational excellence.
Student achievement is exceptionally high. Historically, district test
scores place Cupertino among the premier public school districts in
California. The district is a leader in the development of a standards-based system of
education and is nationally recognized for leadership in the use of technology as an
effective tool for learning. Quality teaching and parent involvement are the keys to the
district's success.
The Fremont Union High School District serves over 9,000 students in a 42 square
mile area covering all of Cupertino, most of Sunnyvale and portions of San Jose, Los
Altos, Saratoga, and Santa Clara. The five high schools of the district have garnered
many awards and recognition based on both the achievement of students and the
programs designed to support student achievement. Student achievement is at an all
time high based on the statewide Academic Performance Index (AP1). All five high
schools in the district exceeded their state established achievement targets for the 2000
API. District students are encouraged to volunteer and/or provide service to
organizations within the community. During their senior year, if students complete 80
hours of service to a non-profit community organization, they are recognized with a
"Community Service Award" medal that may be worn during their graduation ceremonies.
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Cupertino is served by four local
institutions of higher education:
DeAnza College, the University of San
Francisco, National University and
the UCSC Extension. In addition to
these schools, Cupertino's location
offers easy access to Stanford
University, Santa Clara University and
San Jose State University.
Building on its tradition of excellence and innovation, DeAnza
College challenges students of every background to develop
their intellect, character and abilities; to achieve their
educational goals; and to serve their community in a diverse and
changing world.
DeAnza College offers a wide range of quality programs and
services to meet the work force development needs of our
region. The college prepares current and future employees of
Silicon Valley in traditional classroom settings and through
customized training arranged by employers. Several DeAnza
programs encourage economic development through college
credit courses, short term programs, services for manufacturers,
technical assistance, and/or recruitment and retention services.
177
to S
Euphrat Museum of Art
The highly regarded Euphrat Museum of Art adjacent to the Flint Center
on the DeAnza College campus traditionally presents one-of-a-kind
exhibitions, publications and events reflecting the rich diverse heritage of
our area. The Museum prides itself on its changing exhibitions of
national and international stature, emphasizing Bay Area artists.
Museum hours are 11 a.m. - 4 p.m. Tuesday, Wednesday, Thursday; 6-8
p.m. Tuesday and 11 a.m. - 2 p.m. Saturday. Telephone: 408-864-8836.
Minolta DeAnza Planetarium
Stargazers have a Cupertino facility catering to their interests, the
Minolta Planetarium on the DeAnza College campus. It hosts a variety
of planetarium shows and events, including educational programs for
school groups and family astronomy evenings on Saturdays at 7:00 p.m.
For more information and current schedule of events, visit the ~vebsite at
www.planetarium.deanza. Ihda or call 408-864-8814.
Flint Center
The cultural life of the Peninsula and South Bay is enhanced by
programs presented at the Flint Center for Performing Arts located at
21250 Stevens Creek Boulevard at DeAnza College campus. The center
opened in 1971 and was named in honor of Calvin C. Flint, the first
chancellor of the Foothill-DeAnza Community College District. The box
office is open 10 a.m. - 4 p.m. Monday through Friday and one and one
half hours prior to any performance. Box office: 408-864-8816;
administrative office: 408-864-8820.
Cupertino Historical Society
On May 2, 1966, the Cupertino Historical Society was founded as a non-profit organization by a group of 177 longtime
residents concerned about the rapid growth in the area and its impact on the quickly vanishing Cupertino heritage. The
long-term goal of the Society was to develop a museum to preserve the memorabilia that would be so vital in
communicating the history to future generations. On March 30, 1990, the Society opened the Cupertino Historical
Museum dedicated to the preservation and exhibition of the city's history. The museum is a growing repository of
artifacts, documents, photographs, vehicles and equipment of city residents, industries and businesses past and present.
The vitality of the changing community is shown through the rotating exhibitions of the museum. Through its exhibits the
museum attempts to develop and expand the learning opportunities that it offers to the ethnically diverse community of
the City of Cupertino. The Society continues to build partnerships with the local school districts to ensure that the history
of Cupertino is offered as part of the educational curriculum. The Society is located at the Quinlan Community Center,
10185 N. StellingRoad. Telephone: 408-973-8049.
178