City of Oakland
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CITY OF OAKLAND CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2006 PREPARED BY THE FINANCE AND MANAGEMENT AGENCY WILLIAM E. NOLAND, DIRECTOR LARAE BROWN, CONTROLLER PRINTED ON RECYCLED PAPER COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2006 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal................................................................................................................. i GFOA Certificate of Achievement........................................................................................... viii Organizational Chart................................................................................................................. ix List of Elected and Appointed Officials................................................................................... x Project Team............................................................................................................................. xi FINANCIAL SECTION Independent Auditor’s Report ............................................................................................ 1 Management’s Discussion and Analysis ............................................................................ 3 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements: Statement of Net Assets.......................................................................................... 18 Statement of Activities ........................................................................................... 19 Fund Financial Statements: Balance Sheet – Governmental Funds.................................................................... 20 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Assets for Governmental Activities...................................... 21 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds…..…………………………...........................………… 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities of Governmental Activities................................................................................... 23 Statement of Net Assets – Proprietary Funds......................................................... 24 Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary Funds ........................................................................ 25 Statement of Cash Flows – Proprietary Funds ....................................................... 26 Statement of Fiduciary Net Assets – Fiduciary Funds ........................................... 27 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds ........................ 28 Page Notes to Basic Financial Statements: (1) Organization and Definition of Reporting Entity................................................ 30 (2) Summary of Significant Accounting Policies ..................................................... 32 (3) Cash and Investments and Restricted Cash and Investments.............................. 41 (4) Interfund Receivables, Payables and Transfers................................................... 58 (5) Memorandums of Understanding........................................................................ 60 (6) Notes and Loans Receivable................................................................................ 61 (7) Capital Assets...................................................................................................... 62 (8) Property Held for Resale ..................................................................................... 68 (9) Accounts Payable and Accrued Liabilities Payable ............................................ 69 (10) Deferred Revenue................................................................................................ 70 (11) Tax and Revenue Anticipation Notes Payable .................................................... 71 (12) Long-Term Obligations....................................................................................... 72 (13) General Fund Unreserved Fund Balance............................................................. 84 (14) Self-Insurance...................................................................................................... 84 (15) Joint Venture........................................................................................................ 87 (16) Pension Plans....................................................................................................... 91 (17) Postemployment Benefits Other Than Pension Benefits..................................... 95 (18) Commitments and Contingent Liabilities............................................................ 95 (19) Deficit Fund Balances/Net Assets ....................................................................... 98 (20) Subsequent Events............................................................................................... 99 REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Funding Progress – PERS Actuarial Valuation............................................................................................ 102 Budgetary Data................................................................................................................... 103 Budgetary Comparison Schedule – General Fund ............................................................. 105 Reconciliation of Operations on Modified Accrual Basis to Budgetary Basis .................. 106 Page COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES: Combining Balance Sheet –Nonmajor Governmental Funds............................................. 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................................................... 109 Combining Balance Sheet – Nonmajor Governmental Funds – Special Revenue Funds.. 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds – Special Revenue Funds.......................................... 111 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Special Revenue Funds.................................................................................. 112 Combining Balance Sheet – Nonmajor Governmental Funds – Debt Service Funds........ 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds – Debt Service Funds................................................ 115 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Debt Service Funds........................................................................................ 116 Combining Balance Sheet – Nonmajor Governmental Funds – Capital Projects .............. 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds – Capital Projects...................................................... 119 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Projects .............................................................................................. 120 Combining Statement of Net Assets – Internal Service Funds .......................................... 121 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets – Internal Service Funds.................................................................................................. 122 Combining Statement of Cash Flows – Internal Service Funds......................................... 123 Combining Statement of Fiduciary Net Assets – Pension Trust Funds ............................. 124 Combining Statement of Changes in Fiduciary Net Assets – Pension Trust Funds........... 125 Schedule Page STATISTICAL SECTION Net Assets by Component ......................................................................................... 1 126 Changes in Net Assets ............................................................................................... 2 127 Program Revenues by Function/Program.................................................................. 3 128 Fund Balances, Governmental Funds........................................................................ 4 129 Changes in Fund Balances, Governmental Funds..................................................... 5 130 Tax Revenues by Source, Governmental Funds........................................................ 6 131 Assessed Value and Estimated Actual Value of Taxable Property........................... 7 132 Direct and Overlapping Property Tax Rates.............................................................. 8 133 Principal Property Tax Payers……………………………………………………… 9 134 Property Tax Levies and Collections......................................................................... 10 135 Taxable Sales by Category ........................................................................................ 11 136 Direct and Overlapping Sales Tax Rates................................................................... 12 137 Ratios of Outstanding Debt by Type ......................................................................... 13 138 Ratios of General Bonded Debt Outstanding ............................................................ 14 139 Direct and Overlapping Governmental Activities Debt ............................................ 15 140 Legal Debt