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Component Units As of June 30, 2014, there were no discretely reportable component units. The City's blended component units include operations of the San Leandro Parking Authority, the San Leandro Public Financing Authority, and the San Leandro Economic Development Agency. The CAFR for the year ending June 30, 2014 provides a financial account of those activities, organizational elements, and City functions for which the City Council provides policy direction and general oversight. It presents financial information on the activities of the City itself and the component units of the City upon which the City Council is authorized to impose its will. The operating nature of the City's component units determines how they are reported in the financial statements. The activities of component units that provide financial benefit or create financial burden for the City are blended within the City's general financial statements. Component units that have no discernable financial impact upon the City are presented separately. ECONOMIC CONDITION OF THE CITY The City of San Leandro has a diverse and strong economy, with its business community comprised of varied businesses ranging from neighborhood coffee houses and fine restaurants, large food processing centers, and regional shopping opportunities, to cutting edge technology. While the economic base has dramatically changed from its agricultural early years, San Leandro continues to expand on its sound business base with the ongoing development of such projects as a multi -family housing development, a new regional hospital, and the continuing revitalization of downtown San Leandro. The recession resulting from the global financial and credit market meltdown in late 2008 has had a direct and dramatic impact on the City's local revenues. However, recent data indicate recovery, median home prices are $435,000, still less than the median price at the 2006 peak. The unemployment rate has now dropped to 5.6%. The City's General Fund supports many of the City's key services, such as public safety, library and parks and recreation. Revenue to this critical fund, generated largely from sales and property taxes, has started to rebound to levels not seen since 2006-07. Low mortgage rates have spurred investment in housing. Despite the improving housing market, which represents 63% of the City's tax roll, no growth in assessed value for Fiscal year 2013-14 because the new Kaiser Hospital was removed from the taxable roll due to its tax-exempt status. Lower interest rates have also boosted purchases of large ticket items, such as automobiles and home improvements, which boosted sales tax revenue by 9% in the City. With the passage of Measure Z (0.25% sales tax increase) effective January 1, 2011, the extra quarter cent sales tax added $4.6 million sales tax revenue in the fiscal year. City operations are also supported by other funds, including enterprise funds. Key enterprise funds include the Water Pollution Control Plant and Shoreline Enterprise Funds. Both of these funds have seen revenues slightly improving over the last year. The Water Pollution Control Plant Enterprise fund was established to account for the City's sewers, which protect public health and preserve water quality through collection, treatment, and disposal of the community's wastewater and wastewater solids. Program revenues to this fund in 2013-14 totaled $11.96 million, a 6% increase from the prior Vii