HomeMy WebLinkAbout1993/1994 Comprehensive Annual Financial Report - CAFR - wit I
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
CITY OF HUNTINGTON BEACH, CALIFORNIA
FISCAL PERIOD ENDING SEPTEMBER 30, 1994
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FIFTEEN MONTHS ENDING SEPTEMBER 30, 1994
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents ki
Letter of Transmittal iii-xi
Principal City Officials xii
Organizational Chart xiii
Financial Reporting Certificate xiv
FINANCIAL SECTION
r Independent Auditors' Re ort 1
General Purpose Financial Statements
Combined Balance Sheet-Ali Fund Types and Account Groups 2-3
Combined Statement of Revenues, Expenditures and Changes in Fund Balances, 4
Budget and Actual-All Governmental Fund Types
Combined Statement of Revenues, Expenditures and Changes in Fund Balances , 5-6
Budget and Actual-General, Special Revenue and Debt.Service Funds
Combined Statement of Revenues,Expenses and Changes in Retained Earnings-All 7
Proprietary Fund Types and Similar Trust Funds
Combined Statement of Cash Flows-All Proprietary Fund Types 8
f Notes to General Purpose Financial Statements 9-64
Combininq Financial Statements and Schedules of Individual Funds and
Account Grows
General Fund:
Balance Sheet 65
Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and 66
Actual
Special Revenue Funds:
Combining Balance Sheet 67-68
Combining Statements of Revenues, Expenditures and Changes in Fund Balances
Deficits 69-70
Combining Statements of Revenues, Expenditures and Changes in Fund Balances-
` ' Budget and Actual 71-77
Debt Service Funds:
Combining Balance Sheet 78-79
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
80-81
Combining Statements of Revenues, Expenditures and Changes in Fund Balances-
Bud et and Actual 82-85
{ Ca vital Projects Funds:
Combining Balance Sheet 86-87
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
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Enterprise Funds:
Combining Balance Sheet 90
Combining Statement of Revenue, Expenses and Changes in Retained Eamings
Accumulated Deficit) 91
Combining Statement of Cash Flows 92
Intemal Service Funds:
Combining Balance Sheet 93
Combining Statement of Revenue, Expenses and Changes in Accumulated Deficits 94
Combining Statement of Cash Flows 95
Trust and Agency Funds:
Combining Balance Sheet 96
Agency Fund-
Combining Statement of Changes in Assets and Liabilities gg-gg
Trust Funds:
Balance Sheet 99
Statement of Revenue, Expense and Change in Fund Balance 99
General Fixed Assets Account Grou :
Schedule of General Fixed Assets 100
Schedule of Changes in General Fixed Assets b Function and Activity 100
Schedule of General Fixed Assets by Function and Activity 100
General Iona-term Debt Account Grou :
Schedule of Changes in General Long-Term Debt 101
STATISTICAL SECTION
Govemmental Fund Revenues by Source-Last Ten Fiscal Years 102-103
Governmental Fund Expenditures by Function- Last Ten Fiscal Years 102-103
Property Tax Collections- Last Ten Fiscal Years 102-103
Assessed and Actual Valuation of All Taxable Property- Last Ten Fiscal Years 104
Property Tax Rates-All Direct and Overlapping Governments 104
General Obligation Bonded Debt Ratios-Last Ten Fiscal Years 104
Construction Activity and Bank and Savings and Loan Activity-Last Ten Fiscal Years 105
Computation of Legal Debt Ma in 105
Statement of Direct and Ovedpping Bonded Debt 105
Demographic Statistics 10g
Top Ten Secured Property Owners 106
Miscellaneous Statistics 106
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CITY OF HUNTINGTON BEACH
41 2000 MAIN STREET CALIFORNIA 92648
ADMINISTRATIVE SERVICES
March 23, 1995
The Honorable Mayor and City Council.Members
City of Huntington Beach, California
Mayor and Council Members
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This document is the Comprehensive Annual Financial Report for the City of Huntington
Beach for the fifteen months ending September 30, 1994. We believe the data is an
accurate summary of Huntington Beach's financial position. The Administrative Services
Department is responsible for the accuracy of the information presented. We have
included disclosures to improve the understanding of the financial condition of the City.
The financial statements comply with the standards of the Government Accounting
Standards Board and include the report of our independent auditors, KPMG Peat Marwick
LLP.
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This report is organized into three sections:
INTRODucnON
• The introductory section includes this transmittal letter, the City's
organizational chart and a list of the principal officials of the City.
L FINANCIAL
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The financial section includes the general purpose financial statements, the
individual fund and account group financial information and the auditors' report
on the financial statements.
STATISTICAL
The statistical section includes selected financial and demographic information
generally presented on a multi-year basis.
Huntington Beach is a full service City including public safety, parks and recreation,
beach services, library services, planning, zoning, economic development, public works
and related administration. The City also provides water services to residents.
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ECONOMIC CONDITION AND OUTLOOK
California finally began to climb out of the long and painful recession. However, in
December, 1994, Orange County declared bankruptcy as a result of a substantial loss on
its investment pool. The County and the investor's committee appointed by the bankruptcy
court announced on March 17, 1995 a tentative agreement on a u plan of adjustment"
Under the plan, the City would receive access to 77% of its funds immediately, an
additional 3% within a few months and the balance as a claim against the County,
recoverable from litigation proceeds and other payment from the County. The City of
Huntington Beach expects full recovery of its principal balance plus interest earnings on
its investment in the County pool as of the bankruptcy date. The City expects to maintain
normal operations and meet all debt service obligations. Action has begun to reduce
current year expenses and delay/cancel current year planned capital projects to reflect
the fact the funds are not currently available from the County Pool.
Over the years Huntington Beach has developed diverse and stable revenue sources
including property taxes, sales taxes, utility taxes and oil-related revenues. In recent
years, the City began implementation of the Management Services Institute (MSI) cost
recovery system. This helped the City cope with the long, severe recession and will help
in coping with the County bankruptcy.
MAJOR INITIATIVES
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For the Year - The City Council approved changing the fiscal year from the traditional
municipal fiscal year (July 1st to June 30th) to October 1st to September 30th. The
current year summarized in this report is a one-time fifteen month year. The new twelve
month fiscal year began on October 1, 1994. The change allows the City to better plan
t , budgetary decisions based on the State's actions. The new year also parallels the local
economic cycle and the Federal fiscal year.
Construction was completed on the expansion to the Huntington Beach library in 1994.
This expansion makes our library facilities among the finest in the nation and gives our
children a wonderful resource.
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i Construction is nearing completion on the Huntington Beach Art Center. This is funded
by a combination of City funds and private donations and provides residents with a wide
range of art programs.
A major improvement to Beach Boulevard was started in July, 1994 and completed in
early 1995. It adds a lane of traffic in each direction.
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For the Future - Despite the recession's harsh and negative impact, Huntington Beach's
r long-term future remains optimistic. The City's coastal location provides unique
challenges in developing a mix of tourism, industry, residential and commercial
development. This requires the efforts not only of local government but also of
businesses, developers and citizens' groups. The City is committed to ensuring that all
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future development in Huntington Beach be economically and environmentally sound.
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Over the past 15 years, the State and Federal Governments have passed on to local
.governments expenditure mandates and the responsibility for providing many services
previously funded by the State Federal Government. Both the State and Federal
governments have sharply cut back funding to local governments at the same time. fn
addition, the State has taken,$17.2 million of the City's money since 1990/91 to balance
the State Budget. While many of these expenditures serve worthwhile purposes,
Congress and the State Legislature should provide funding for any expenditures
mandated to local governments.
FINANCIAL INFORMATION
The City prepares financial statements on the modified accrual basis for all governmental
fund types except for the financial statements of the proprietary fund types that are
prepared on the accrual basis. The City's system of internal control protects City assets
while ensuring that the cost of controls do not exceed the expected benefits.
Budgeting Controls - The City Council adopts the annual budget and may amend or
revise it at any meeting of the City Council that has been properly noticed for such action.
Budgetary control is at the departmental level. A department head, with the Finance
Director's approval, can transfer funds within like object categories of the same
department. The City Administrator can transfer funds from one object category to
another without increasing the total budget of a fund. The City Administrator must
approve any changes to capital outlay requests. The City utilizes an encumbrance
system as a management control technique. Encumbrances are orders, or contracts, for
goods or services not yet completed or received. The City reports these as reservations
of fund balance in governmental fund types.
Financial Summary - Normally, in the letter of transmittal, revenues and expenditures are
compared to prior .year amounts and significant differences are explained. .Since this
fiscal period includes 15 months, it is more informative to explain variations from budgets.
Below is an analysis of general fund revenues with explanations of significant variations -
(greater than 5% and greater than $200,000):
$In Thousands
Revenue Source Budgeted Actual Amount Over % Over(Under)
Amount Amount (Under)_Budget Budget
Property Taxes $32,229 $26,940 ($5,289) (16.4)
Sales Taxes 20,450 20,415 (35) (0.2)
Other Taxes 23,753 23,398 (355) (1.5)
Licenses and Permits 5,162 4,958 (204) (4.0)
Fines and Forfeitures 1,845 1,894 49 2.7
From Use of Money and Property 9,170 8,241 (929) (10.1)
From Other Agencies 11,045 11,457 412 3.7
Charges for Current Service 9,954 8,878 (1,076) (10.8)
Other 1,161 1,053 (108) (9.3)
Total $114,769 $107,234 ($7,535)
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• Property tax revenues were less than the budgeted amount because the City
budgeted property tax revenues generated between July 1st and September
` 30th (but not paid to the City until December). Under applicable accounting
standards, these amounts are reportable as revenue in 1994195 even though
they were generated in 1993/94. For budgetary purposes, however, the City
recognizes these revenues when generated..
• Revenue from use of money and property was less than the budgeted amount
due to allocations of repayments of Redevelopment Agency advances to
l principal reduction (no impact on fund balance).
• Charges for Current Service were less than the budgeted amount due to activity
for construction permits being lower than projected.
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Below is an analysis of General Fund expenditures with explanations of significant
variations (greater than 5% and greater than $200,000).
$In Thousands
1993/94 1993/94 Amount Under % Under(Over)
Budget Amount (Over) Budget budget
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City Council $310 $282 $28 9.03
City Administrator 1,190 1,014 176 14.79
City Treasurer 889 897 (8) (0.90)
City Attorney 2,098 2,007 91 4.34
City Clerk 526 517 9 1.71
Administrative Services 5,178 5,140 38 0.73
Community Development 4,569 4,223 346 7.57
Fire 19,992 19,488 504 2.52
Police 38,988 39,048 (60) (0.15) _
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Community Services 9,097 9,053 44 0.48
c a Library Services 3,403 3,373 30 0.88
Public Works 19,265 18,154 1,111 5.77
l Non-Departmental 9,606 10,405 (799) (8.32)
Capital Outlay 1,591 1,5449 42 2.64
Debt Service 410 607 (197) (48.0^)
r $117,112 $115,757 $1,355 1.16
• Public Works expenditures decreased due to vacancies in full time positions.
` Non-Departmental expenditures exceeded budget due to unanticipated increase
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in utility costs.
• Community Development costs were less than 'budget due to vacant positions
during the year.
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$In Thousands
GENERAL FUND AND RESERVE FOR Total Total Percent
ECONOMIC UNCERTAINTIES FUND Equity Equity Increase
1993/94 1992/93 (Decrease)
Reserved 25,797 $20,823 24
Unreserved/Undesignated (163) 8,152 p�
$20,634 $28,975 (29)
$In Thousands
Total Equity Total Equity Percent
GOVERNMENTAL FUNDS 1993/94 1992/93 Increase
(Decrease)
Reserved $102,561 $104,991 (2.3)
Designated 2,486 8,090 (69.3)
Unreserved/Undesignated 2,824 14,061 (79.9)
Total $107,871 $127,142 (15.2)
PROPRIETARY FUNDS
Contributed Capital 59,127 $57,636 2.6
Retained Earnings 5,280 8,465 (37.6)
Total $64,407 $66,101 (2.56)
• The reduction in General Fund Unreserved/Undesignated Fund Equity is due to
the reduction in property tax revenue due to the timing of the new fiscal year (see
prior comments). Had the generated property taxes been recognized as income,
the General Fund Unreserved/Undesignated Fund Balance would have been
approximately $6 million.
• The decrease in designated fund balance for governmental fund results from
funds having budget shortfalls adopted for fiscal year 1994/95.
• The decrease in 'the total governmental fund undesignated/unreserved fund
balance results from budget shortfalls in the Redevelopment Agency and General
Fund.
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The reduction in the retained earnings for the Proprietary Funds results from a
large loss in the Self-Insurance Fund. A review of this funds financial obligations
will be conducted inL the next year.
Proprietary Operations - The City operates five enterprise and two internal service
funds. The Enterprise funds are the Water Utility Fund, the Refuse Collection Fund, the
Meadowlark Golf Course Fund, the Emergency Fire Medical Fund and the Emerald Cove
Housing Fund. These funds are supported through user charges to the public. The
internal service funds are the Self-Insurance Fund and the Equipment Replacement Fund
and are supported by charges to user departments within the City.
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Shown below is an analysis of the City's five enterprise funds:
$In Thousands
ENTERPRISE FUNDS Water Meadowlark Emerald Cove FireMed Refuse
{ ' Operating Revenues $20,983 $240 $746 $2,844 $9,062
` s Operating Income (Loss) (1,599) 240 .328 187 349
I ? Net Income (Loss) (264) 324 172 (60) 36
' Debt Service Coverage n/a 2.60 1.02 n/a n/a
Shown below is a table analyzing the performance of the City's internal service funds:
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$In Thousands
INTERNAL SERVICE FUNDS Self-Insurance Equipment Replacement
Operating Revenues $10,094 $2,065
Operating Income (Loss) (3,943) (903)
Net Income (Loss) (2,901) (493)
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Losses in these funds are further discussed in note 19(b) to the general purpose financial
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Pension Obligations - The City participates in the California Public Employment
Retirement System (PERS) which sets the rates the City uses to make contributions on
behalf of all eligible employees. At June 30, 1994, which is the most recent information
available from PIERS, the City's total future pension obligation for all current and retired
` ? employees was $209,673,000 and assets available for these obligations was
$203,995,000 leaving an unfunded obligation of$5,678,000.
i The City also maintains a supplemental retirement plan. An independent actuarial study
` ` performed as of June 30, 1994 showed the total unfunded pension liability for this plan
was $13,302,000. The contribution rate required to fund this plan is 3.34% of total salary.
! During the next two years, a plan will be developed to fund these benefits.
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Agency Funds - Agency funds are monies held by the City in trust for others. Total
assets and liabilities of the City's agency funds increased by $6,724,000, or 23% to
$35,801,000. This is due to increased employee participation in the City's deferred
compensation plan.
Debt Administration -The City's outstanding long-term debt at year-end was:
$In Thousands
General Obligation Bonds:
1970 Park Bonds $445
Reservoir Hill Assessment District Bonds 1,305
Revenue Bonds:
Public Financing Authority Bonds (Redevelopment Agency) 32,715
Certificates of Participation:
Emerald Cove Housing (Redevelopment Agency) 5,555
Civic Improvement Corporation 36,670
Public Financing Authority 2,425
Leasehold Mortgage Bonds:
Public Facilities Corporation 1,085
Notes Payable:
Meadowlark Golf Course (including current portion) 1,521
Redevelopment Agency 711
Other:
Compensated Absences 5,388
Self-Insurance Claims 10,860
Leases Payable 745
Redevelopment Agency Advances from Other Funds 119,492
Total $218,917
Moody's Investor's Service rates certain obligations as to their safety as an investment..
Below are the current ratings of certain City obligations:
Civic Improvement Corporation Certificates of (Aaa)
Participation
Public Facilities Corporation Leasehold Mortgage Bonds (Al)
Public Financing Authority 1992 Revenue Bonds Ba
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The City's legal debt limitation for general obligation bonds is 12% of the total of
assessed valuation in the city. At September 30, 1994 the City's general obligation debt
was 0.03% or$1.4 billion less than, its legal debt limitation.
Notes 12 and 13 to the General Purpose Financial Statements include further information
on the City's long-term debt.
Cash Management - The City Treasurer invests available cash in allowable instruments.
These include insured or collateralized certificates of deposit, certain government
securities, five years or less commercial paper rated A or better, the Orange County
Investment Pool, and the State Local Agency Investment Fund. The cash management
system of the City monitors revenues and expenditures to maximize investment
capabilities. The investment of cash and investments under the control of the City
Treasurer yielded interest of $7,348,000 for an average of 6.94% during the year. The
potential effects of the County of Orange bankruptcy were not included in this caculation.
r The California Government Code requires the City Treasurer to prepare an annual
statement of investment policy and monthly report containing specific information about
the City's investment policy. The City Treasurer has complied with this law. Notes 3 and
4 F 22 to the General Purpose Financial Statements includes further information on the City's
cash and investments.
Risk Management - The City is self-insured for liability, worker's compensation and
employee health claims. The City is a member of the Big Independent Cities Excess Pool
(BICEP) which provides coverage for liability claims in excess of $1 million. The City also
maintains privately purchased insurance coverage for worker's compensation and
! employee health claims in excess of certain amounts.
OTHER INFORMATION
k` The Single Audit Act of 1984 requires the City's grant programs that use Federal funds,
r ? either directly or passed through from other agencies, to be subjected to special audit -
procedures. This includes test of compliance with Federal laws and regulations and an
organization-wide examination of financial operations. Copies of this audit are available
from this office.
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This report includes the financial activity of separate legal entities whose activities the
City controls. These entities are the:
Redevelopment Agency of the City of Huntington Beach
Huntington Beach Public Facilities Corporation
{ Huntington Beach Public Financing Authority
• Huntington Beach Civic Improvement Corporation
Parking Authority of the City of Huntington Beach
+ City of Huntington Beach Community Facilities District
• Reservoir Hill Assessment District
Huntington Beach Auto Business Improvement District
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Component unit reports (stand-alone reports) are available for the Redevelopment
Agency, the Public Facilities Corporation and the Public Financing Authority.
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Financial Reporting Certificates - The city prepares easily readable and efficiently
organized Comprehensive Annual Financial Reports. The Government Finance Officer's
Association (GFOA) awarded the City a Certificate of Achievement for Excellence in
Financial Reporting, which is the highest form of recognition for municipal financial
reporting for its June 30, 1993 report. The certificate is valid for a period of one year only.
The GFOA awards the certificate to governmental agencies whose reports conform
substantially with high standards of public financial reporting. The California Society of
Municipal Finance Officers awarded the City a Certificate of Award for Outstanding
Financial Reporting for the June 30, 1993 report which is also the highest form of award
the organization offers.
We believe that this year's report conforms to both organization's award program
requirements and we will submit it to them for review.
Acknowledgments - We wish to thank the City Council and the various City departments
for conducting the fiscal affairs of Huntington Beach in a responsible manner. We would
also like to thank Robert Sedlak, Principal Accountant and Shari Donoho,
Administrative Assistant for their work in the preparation of this report.
Sincerely,
Dan T. Vill I a
Dire i nc
Robert r nz
Deputy City Administrator
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CITY OF HUNTINGTON BEACH
PRINCIPAL CITY OFFICIALS
CITY COUNCIL
Linda Moulton-Patterson, Mayor
Earle Robitaille, Mayor Pro-Tem
Ralph Bauer, Councilmember
Victor Leipzig, Councilmember
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Jim Silva, Councilmember
Dave Sullivan, Councilmember
Grace Winchell, Councilmember
OTHER ELECTED OFFICIALS -
Connie Brockway, City Clerk
Gail Hutton, City Attorney
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Donald Watson, City Treasurer
ADMINISTRATIVE OFFICIALS
Michael Uberuaga, City Administrator
Ray Silver, Assistant City Administrator
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Robert J. Franz, Deputy City Administrator
Barbara Kaiser, Deputy City Administrator
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Michael Dolder, Fire Chief
Ron Hagan, Community Services Director
Ron Hayden, Library Services Director
Ron Lowenberg, Police Chief
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PEOPLE
CITY COUNCIL CITY _ I [ CITY CITY
TREASURER ATTORNEY CLERK
CITY
ADMINISTRATOR
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Certificate of
Achievement
for Excellence
in Financial
Aeporting
Presented to
7
City of Huntington Beach,
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California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1993
A Certificate of Achievement for Excellence in Financial
L 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
x. standards in government accounting
and financial reporting.
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President
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Executive Director
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FJOUCCIARY FUND (Memorandum
TYPES ACCOUNT GROUPS Only)
enera ong-
General Fixed Term Debt
Trust and Agency Assets Account Group Total
$5,057 $74,465
29,172 36,063
9,145
1,141 11,087
1,457
1,161
87 8,975
344 4,479
119,492
757 1,276
16,983
131,494 183,278
11,611 11,611
185,718 185,718
i $35,801 $132,251 $197,329 $665,190
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$5,271
j $23 1,752
1,981 4,659
627
114 8,975
15,000
$119,248 11%492
29,866 29,B66
f ? 10,860
3,931 3,931
t ' 65,593
6,811
1,491
73,049 81,059
{ 5,032 5,388
35,915 197,329 360,775
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59,127
j 132,251 132,251
5,280
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I (114) 102,447
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2,486
r r 2,824
(114) 132,251 304,415
$35.801 $132,251 $197,329 $665,190
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t j CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30, 1994
(IN THOUSANDS)
Totals
Special Revenue Debt Serviee Capitat Projects (Memorandum
REVENUES: General Fund Funds Funds Funds Only)
Property Taxes (Note 1) $26,940 $5,605 $32,545
Other Taxes 43,813 1,690 691 46,194
Licenses and Permits 4,958 1,616 5 6,579
Fines,Forfeitures and Penalties 1,894 1,894
From Use of Money and Property 8,241 2,093 4,469 2,500 17,303
` From Other Agencies 11,457 14,237 200 25,894
Charges for Current Service 8,878 38 612 9,528
r # Other 1,053 422 4,746 6,221
TOTAL REVENUE 107,234 20,0% 10,074 8,754 146,158
3 EXPENDITURES:
Current:
r , City Council 282 282
` City Administrator 1,014 1,677 2,691
City Treasurer 897 897
City Attorney 2,007 161 2,168
( City Clerk 517 517
Administrative Services 5,140 5,140
t Community Development 4,223 195 5 4,423
Fire 19,488 14 19,502
f r Police 39,048 1,487 40,535
Economic Development 1,966 4,017 5,983
Community Services 9,053 454 385 9,892
Library Services 3,373 140 3,513
( Public Worsts 18,154 2,267 381 20,802
Non-Departmental 10,4D5 7 332 43 10,787
). Capital outlay 1,549 10,720 9,959 22,228
Debt Service(Note 12)
t , Principal 5,249 5,249
Interest 607 12,843 13,450
( TOTAL EXPENDITURES 115,757 18,927 18,424 14,951 168,059
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (8,523) 1,169 (8,350) (6,197) (21,901)
r r OTHER FINANCING SOURCES(USES):
Operating Transfers in(Note 10) 5,588 6,204 6,492 6,834 25,118
Proceeds of Long-Term Debt(Note 12) 139 1,426 1,565
Operating Transfers Out(Note 10) (10,406). (4,653) (2,859) {6,134) (24,052)
TOTAL OTHER FINANCING SOURCES(USES) (4,818) 1,551 3,772 2,126 2,631
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)
( k EXPENDITURES AND OTHER USES (13,341) 2,720 (4,578) (4,071) (19,270)
FUND BALANCE,BEGINNING OF YEAR 28,975 15,506 47,031 35,629 127,141
RESIDUAL EQUITY TRANSFERS:
i r Residual Equity Transfers In 811 811
( Residual Equity Transfers Out (811) (811)
TOTAL RESIDUAL EQUITY TRANSFERS (811) 811
FUND BALANCE-END OF YEAR $15,634 $18,_226 $41,642- $32.369 $107,871
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? See Notes to General Purpose Financial Statements 4 j
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CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENDITURE$AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
GENERAL,SPECIAL REVENUE AND DEBT SERVICE FUNDS
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
GENERAL FUND SPECIAL REVENUE FUNDS
Variance
Favorab$e Variance Favorable
REVENUES: Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Property Taxes $32,229 $26,940 ($5,289)
Other Taxes 44,203 43,813 (390) 1,000 1,690 690
Licenses and Permits 5,162 4,958 (204) 901 1,616 715
Fines,Forfeitures and Penalties 1,845 1,894 49
From Use of Money and Property 9,170 8,241 (929) 1,774 2,093 319
From Other Agencies 11,045 11,457 412 16,364 14,237 (2,127)
Charges for Current Service 9,954 8,878 (1,076) 38 38
Other 1,162 1,053 109) 132 422 290
TOTAL.REVENUE 114,770 107,234 (7,536) 20,171 20,096 (75)
EXPENDITURES:
Current:
City Council 310 282 28
City Administrator 1,190 1,014 176 2,019 1,677 342
City Treasurer 889 897 (8)
City Attorney 2,098 2,007 91
City Clerk 526 517 9
Administrative Services 5,178 5,140 38
Community Development 4,589 4,223 346 213 195 18
Fire 19,992 19,488 5D4 14 14
Police 38,988 39,048 (60) 1,831 1,487 344
Economic Development 2,109 .1,966 143
Community Services 9,097 9,053 44 783 454 329
Library Services 3,403 3,373 30 152 140 12
Public Works 19,265 18,154 1,111 2,734 2,267 467
Non-Departmental 9,606 10,405 (799)- 855 7 848
Capital Outlay 1,591 1,549 42 22,198 10,720 11,478
Debt Service
Principal
Interest 410 607 f197)
TOTAL EXPENDITURES 117,112 115,757 1,355 32,908 18,927 13,981
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,342) (8,523) (6,181) (12,737) 1,169 13,9D6
OTHER FINANCING SOURCES(USES):
Operating Transfers In 5,588 5,588 6,817 6,204 (613)
Proceeds of Long-Term Debt
Operating Transfers Out (10,4D6) (10,406) (4,689) (4,653) 36
TOTAL OTHER FINANCING SOURCES(USES) (4,818) (4,818) 2,128 1,551 (577)
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (7,160) (13,341) (6,181) (10,609) 2,720 13,329
FUND BALANCE,BEGINNING OF YEAR 28,975 28,975 15,506 15,506
RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers Out
FUND BALANCE-END OF YEAR $21,815 $15,634 ($6,181) $4,897 $18,226 $13,329
k
See Notes to General Purpose Financial Statements 5
DEBT SERVICE FUNDS TOTAL-MEMORANDUM ONLY
Vanance
Favorable Variance Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$5,493 $5,605 $112 $37,722 $32,545 ($5,177)
t 45,203 45,503 300
6,063 6,574 511
1,845 1,894 49
5,948 4,469 (1,479) 16,892 14,803 (2,089)
f 27,409 25,694 (1,715)
9,954 8,916 (1,038)
1,294 1,475 181
11,40 10,074 (1,367)1 146,382 137,404 (8,978)
310 282 28
3,209 2,691 518
6
889 897 (8)
2,098 2,007 91
526 517 9
5,178 5,140 38
4,782 4,418 364
£ 20,006 19,502 504
40,819 40,535 284
2,109 1,966 143
9,880 9,507 373
( 3,555 3,513 42
21,999 20,421 1,578
` 390 332 56 10,851 10,744 107
23,789 12,269 11,520
F
5,249 5,249 5,249 5,249
12,534 12,843 (309) 12,944 13,450 (506G�
18,173 18,424 (251) 168,193 153,108 15,085
(6,732) (8,350) (1,618) (21.811) (15,704) 6,107
6,491 6,492 1 18,896 18,284 (612)
6 ' 139 139 139 139
3 (2,859) (2,859) (17,954) (17,918) 36
( ' 3,771 3,772 1 1,081 505 (576)
( (2,961) (4,578) (1,617) (20,730) (15,199) 5,531
} 47,031 47,031 91,512 91,512
L
(811} (811) (8112 (811)
r $43.259 $41,642 ($1,617) $69,971 $75,502 $5,531
� l
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i
iII _
I ,
I �
See Notes to General Purpose Financial Statements 6
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
Fiduciary Fund Memorandum
Types Only
OPERATING REVENUES: Enterprise Internal Service Pension Trust Total
Sales $20,463 $20,463
Rentals 986 9$6
Fees for Service 11,906 $11,852 23,758
Other 520 307 $293 1,120
TOTAL OPERATING REVENUES 33,875 12,159 293 46,327
OPERATING EXPENSES:
Water Purchases 4,111 4,111
Administration 4,109 4,109
Contract Services 11,655 4,386 16,041
Engineering 419 419
Production 6,835 6,635
Maintenance 1,386 1,386
Water Meters 1,110 1,110
Water Quality 455 455
Contribution to General Fund 2,908 2,908
Employee Medical Claims 4,372 4,372
Liability Claims 2,270 2,270
Workers Compensation Claims 3,309 3,309
Pension Payments 482 482
Depreciation 1,382 2,6W 4,050
TOTAL OPERATING EXPENSES 34,370 17,005 482 51,857
OPERATING INCOME(LOSS) (495) (4,150) (189) (5,530)
NON-OPERATING REVENUES(EXPENSES)
Interest Income 2,338 1,228 3,566
Interest Expense (614) (401) (1,015)
Joint Venture(Note 18) 152 518 670
TOTAL NON-OPERATING REVENUES(EXPENSES) 1,876 1,345 3,221
NET INCOME(LOSS)BEFORE,OPERATING TRANSFERS 1,381 (3,501) (189) (2,309)
Operating Transfers In(Note 10) 80 158 238
Operating Transfers Out(Note l0) (1,253) (51) (1,304)
NET INCOME(LOSS) 208 (3,394) (189) (3,376)
RETAINED EARNINGS(ACCUMULATED DEFICIT)-
BEGINNING OF YEAR 13,694 (5,228) 75 8,541
RETAINED EARNINGS(ACCUMULATED DEFICIT) -END
OF YEAR $13,902 ($8,622) ($114) $5,166
See Notes to General Purpose Financial Statemens 7
I
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30, 1994
(IN THOUSANDS)
Memorandum
Proprietary Fund Types Only
CASH FLOWS FROM OPERATING ACTIVITIES: Enterprise Internal Service Total
OPERATING INCOME(LOSS) ($495) ($4,846) ($5,341)
Adjustments Required to Reconcile Operating Income(Loss)
to Net Cash Used in Operating Activities
Depreciation 1,382 2,666 4,050
s Decrease(Increase)in Accounts Receivable (1,157) (1,157)
E Decrease(increase)in Interest Receivable (159) (234) (393)
Decrease(Increase)in Unbifled Receivable 172 172
Decrease(Increase)in Advance to Other Funds (281) (281)
Decrease(Increase)in Inventory (102) (102)
Decrease(Increase)in Prepaid Insurance (662) (662)
Increase(Decrease)in Accounts Payable 1,755 (59) 1.696
Increase(Decrease)in Accrued Payroll (51) (4) (55)
r ' Increase(Decrease)in Claims Payable (3,260) (3,260)
Increase(Decrease)in Interest Payable (71) (74) (145)
Increase(Decrease)in Amounts Due to Other Funds 229 87 316
Decrease(Increase)in Amounts Due from Other Funds (7,173) 3,211 (3,962)
r Increase(Decrease)in Leases Payable (273) (273)
Increase(Decrease)in Deposits 368 368
Increase(Decrease)in Compensated Absences 95 95
TOTAL ADJUSTMENTS (4,993) 1,4DO (3,593)
NET CASH USED IN OPERATING ACTIVITIES (5,488) (3,446) (8,934)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating Transfers In From Other Funds 80 158 238
€ Operating Transfers Out to Other Funds (1,253) (51) 1,304)
TOTAL CASH FLOWS PROVIDED(USED)FROM NOW
f CAPITAL FINANCING ACTIVITIES (1,173) 107 (1,066)
CASH FLOWS FROM CAPITAL AND RELATED
r FINANCING ACTIVITIES
Interest Paid (614) (614)
i Acquisition and Construction of Capital Assets (3,435) (2,215) (51650)
Proceeds of Sale of Plant,Property and Equipment 405 948 1,353
1 t Principal Paid on Long-Term Debt (195) 1,100) (1,295)
TOTAL CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (3,839) (2,367) (6,206)
CASH FLOWS FROM INVESTING ACTMTY
Interest on Investments 2,338 1,228 3,566
NET INCREASE(DECREASE)IN CASH AND CASH
EQUIVALENTS (8,162) (4,478) (12,640)
9 CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 18,843 12,421 31,264
f [ CASH AND CASH EQUIVALENTS END OF YEAR $10,681 $7,943 $18,624
i �
NON-CASH ACTIVITIY
T Contributions of Fixed Assets $246 $1,245 $1,491
5 Joint Venture Activity $5 $518 r $523
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f 'k See Notes to General Purpose Financial Statemens 8
THIS PAGE LEFT BLANK INTENTIONALLY
[ I
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. REPORTING ENTITY
3. CASH AND INVESTMENTS
4. DEFERRED COMPENSATION
S. DEFERRED REVENUE
6. RETIREMENT PLAN - NORMAL
r 7. RETIREMENT PLAN - SUPPLEMENTAL
8. POST RETIREMENT MEDICAL INSURANCE
9. RISK MANAGEMENT
10. INTERFUND TRANSACTIONS
1 ' 11. PROPRIETARY FUND SEGMENT INFORMATION
„
} 12. GENERAL LONG-TERM DEBT
f , 13. PROPRIETARY FUND LONG-TERM DEBT
f i
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS
15. FIXED ASSETS AND CAPITAL LEASES
16. RESERVES AND DESIGNATIONS OF FUND EQUITY
t ' 17. COMMITMENTS AND CONTINGENCIES
r
18. JOINT VENTURES
19. OTHER INFORMATION
20. TAX AND REVENUE ANTICIPATION NOTES
t F
b :
21. CHANGE IN REPORTING ENTITY'S FISCAL YEAR
22. SUBSEQUENT EVENT -COUNTY OF ORANGE BANKRUPTCY
i
S
a
THIS PAGE LEFT BLANK INTENTIONALLY
3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Description of Fund Types and Account Groups:
The City of Huntington Beach .(City) accounts for its financial position and operations
according to generally accepted accounting principles for governmental units prescribed
by the Government Accounting Standards Board (GASB). The City uses various funds
and account groups to record its financial activity. A fund or account group is an
accounting entity with a self-balancing set of accounts to record the financial position
and results of operations of a specific governmental activity. The City maintains the
following fund types and account groups:
Governmental Fund Types:
it
• The General Fund accounts for all financial activity not required to be accounted for in
o
another fund,
• Special Revenue Funds account for the receipt and expenditure of monies legally
restricted to a specific use.
• Debt Service Funds account for the receipt and disbursement of monies used for the
payment of general and redevelopment long-term principal and interest.
Capital Protects Funds account for monies used for the acquisition and construction of
major capital facilities.
Proprietary Fund Types:
Enterprise Funds account for City operations financed similarly to private businesses
and are used when the City recovers the cost of a particular service furnished to the
public on a cost reimbursement (expenses including depreciation) basis or when the
f City wants to determine net income.
Internal Service Funds account for goods and services provided by one department of
the City to another on a cost-reimbursement basis.
Fiduciary Fund Type
• Auency Funds account for assets held by the City as an agent for individuals or private
organizations.
Pension Trust Funds account for contributions made and retirement benefits paid.
Account Groups:
rr
Ld
9
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of Fund Types and Account Groups:
. The General Fixed Assets Account Group records and controls the City's capital assets
not owned by proprietary funds.
e The General Lon- Term Debt Account Group accounts for the unmatured long-term
liabilities financed from governmental funds.
b. Basis of Accounting:
Governmental and agency funds use a modified accrual .basis of accounting. The City
recognizes revenue when it is susceptible to accrual. This means that they must be
measurable and available to finance current period expenditures. They include property
taxes, sales tax, federal and state grants and subventions, interest and certain charges
for current service. Revenues not susceptible to accrual include certain licenses,
permits, fines and forfeiture and other miscellaneous revenue. The. City recognizes
expenditures when it incurs a measurable liability except that it recognizes interest on
long-term dent when due_
The City accounts for proprietary fund types and pension trust funds on the accrual basis
that is similar to private businesses. These funds recognize revenue when earned, `
regardless of the date of receipt, and recognize expenses when incurred.
c, Measurement Focus:
The City's accounts for its governmental funds on a spending or "financial flow'
measurement focus where it generally includes only current assets and current liabilities
on the balance sheets. Statements of revenue, expenditures and changes in fund
balance for governmental funds generally present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current
assets.
Proprietary funds and the pension trust fund record activity on a capital maintenance
measurement focus. Balance sheets show all current and non-current assets and
liabilities. Reported fund equity represents total net assets. Proprietary fund operating
statements present increases(revenues) and decreases(expenses) in total net assets.
d. Budgets and Budgetary Accounting:
The City Council adopted the fiscal year 1993/94 budget prior to June 30, 1993 for all
applicable governmental fund types(see note 19(c)). For fiscal years ending September
30, 1995 and beyond, the City Council will annually adopt a budget by September 30th
of the prior fiscal year. The budgeted expenditures become the appropriations to the
various departments. The budget includes estimates for revenue that, along with the
appropriations, compute the budgetary fund balance. The appropriated budget covers
substantially all governmental fund type expenditures with the exception of capital
10
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Budgets and Budgetary Accounting:
improvement projects (capital projects funds) carried forward from prior years, which
constitute a legally authorized non-appropriated budget. The City Council may amend
the budget at any time. The City Administrator may transfer funds from one object
purpose (personal services, operating expenditures or capital outlay
lay expenditures) to
another within the same department without changing the total budget of a department.
A department head may transfer funds from like object categories of the same
department. The City Council must approve changes to departmental budgets.
Expenditures may not exceed appropriations at the departmental level. All unused
appropriations lapse at year-end. During the year the City Council made several
supplemental appropriations.
The City Council adopts govemmental fund budgets consistent with generally accepted
accounting principles as legally required except for revenues for property taxes which
are budgeted on a different basis (property taxes generated for fifteen months) because
the City's fiscal year differs from the County's fiscal year (see notes 1q and 21).
Management feels that budgetary information would be misleading without the change
since the fifteen month fiscal year would only show twelve months of budgeted property
f 7 tax revenue- This difference will only be in effect for the current fiscal period.
There are no significant non-budgeted financial activities. Revenues for special revenue
funds"are budgeted by entitlements, grants and estimates of future development and
economic growth. Expenditures and transfers are budgeted based upon available
L
financial resources.
On or before May 31st of each year(beginning for fiscal year 1994/95), each department
submits data to the City Administrator for budget preparation. Staff prepares the budget
by fund, function and activity. The budget includes information on past years, current
year estimates and requested appropriations for the next fiscal year. Before August 1st,
the City Council receives the proposed budget. The City Council holds public hearings
and may amend the budget by a majority vote. Any changes to the budget must be
within the available revenues and reserves.
These financial statements show budgetary data for the General, Special Revenue and
Debt Service Funds. They do not show budgetary information for the Capital Projects
7
Funds since these are budgeted on a long-term project by project basis.
The City uses an encumbrance system as an aid in controlling expenditures. When the
City issues a purchase order for goods or services, it records an encumbrance until the
vendor delivers the goods or performs the service. At year-end,the City reports all
outstanding encumbrances as reservations of fund balance in governmental fund types.
The City reappropriates these encumbrances into the new fiscal year.
3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
e. Investments:
The City records investments, other than deferred compensation investments, at cost.
If market values decline below cost, no loss is recorded unless such declines are
considered permanent. The assets of the Employee Deferred Compensation Fund (an
agency fund) are reported at market value rather than cost.
f. Property and Equipment:
The City records acquisitions of property and equipment as expenditures in
govemmental fund types at the time of purchase. It capitalizes them at historical cost or
estimated historical cost in the General Fixed Assets Account Group. Land held by the
Redevelopment Agency for resale is capitalized at the lower of cost or estimated net
realizable value in the Redevelopment Agency Capital Projects Fund. Expenditures for
infrastructure (roads, curbs, sidewalks, sewers, etc.) are not capitalized as such assets
are immovable and generally of value only to the City. No depreciation is provided for
any asset capitalized in the General Fixed Assets Account Group.
The City records all purchased fixed assets acquired by proprietary funds at historical
cost (where historical records are available) and at estimated historical cost where'no
historical records exist. Both proprietary and general fixed assets acquired from gifts or
contributions are capitalized at fair market value at the time received, or in the case of
water fixed assets, at City Council acceptance date. Depreciation for proprietary fund
donated and acquired assets is calculated on the straight-line method over the estimated
useful lives of the assets shown below and charged to the respective fund.
Production, pumping
transmission and distribution
plant 10 to 50 ears
General Plant 20 to 50 years
Transportation E ui ment 5 to 30 years
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The
amount of interest to be capitalized is calculated by offsetting interest expense incurred
from the date of borrowing until completion of the project with interest earned on the
invested proceeds over the same period. In prior years the City capitalized $185,000 of
interest on the construction of the Emerald Cove apartment complex.
g. Inventories:
Inventories are recorded in governmental funds by the consumption method. Inventories
are capitalized and recorded as expenditures when used and are valued using the
average cost method. This amount is offset with a reservation of fund balance.
12'
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
E
h.Interfund Transactions:
3
` Numerous transactions occur between funds of the City resulting in; operating transfers,
residual equity transfers, amounts due to or due from other funds and amounts
advanced to or from other funds.
i Operating transfers are non-recurring transfers between funds.
f r Residual equity transfers are non-routine permanent transfers of equity between
f funds.
Amounts due to or from are the current (due within one year) portion of monies that
are to be paid or to be received from other funds.
4 I Amounts that are classified as advances from other funds are the long-term portion
of monies which will be repaid to other funds.
Amounts classified as advances to other funds represent the long-term portion of
r amounts to be received from other funds. In governmental funds, amounts
I s advanced to other funds are also offset equally by a fund balance reserve account
(net of deferred interest on long-term advances), indicating that they are not
spendable financial resources.
Quasi-extemal transactions are interfund transactions that would be treated as
revenues, expenditures or expenses if they had involved organizations external to the
City. The City records all quasi-extemal transactions as revenues, expenditures or
# ? expenses. Transactions that reimburse a fund for expenditures or expenses initially
i made from that, are recorded as expenditures/expenses. All other interfund
transactions are reported as operating transfers.
r ?.
1 �
i. Long-Tenn Obligations:
The City records governmental fund long-term debt (principal, interest and fiscal
pcharges) as an expenditure when paid regardless of when the expenditure is incurred.
Obligations financed from spendable, available financial resources are reported as a
fund liability. The remainder is reported in the General tong-Term Debt Account Group.
Bond discounts and issuance costs are recognized in the period that the debt is issued.
Proprietary fund long-term debt is accounted for in the respective funds. Interest on the
f debt is recorded when incurred. Principal due within one year is shown as a current
liability. The remainder is classified as a long-term liability. Bond discounts are
recorded as a reduction of outstanding debt and are deferred and amortized over the life
fr of the debt.
F 13
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CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
j. Employee Compensated Absences:
The City records the cost of vacation and sick leave when paid in the governmental fund
types and when incurred in the proprietary fund types. The City records the
governmental fund liability in the General Long-Term Debt Account Group since these
amounts will be paid with future financial resources rather than currently available
spendable resources. The liability in proprietary fund types is recorded as a fund liability. =
The City records sick leave liability using benefits earned by employees at the balance
sheet date that will result in termination payments rather than compensated absences.
The City records vacation leave liability using the dollar value of employees' rights to
receive compensation attributable to services already rendered.
k. Fund Equity:
The various types of fund equity recorded on the balance sheet are described below:
Governmental Fund Types:
• Reserved Fund Balance is the portion of fund balance that is not appropriable for
expenditure or that is legally segregated for a specific future use.
• Unreserved/Designated Fund Balance is the portion of fund balance that has been
tentatively set aside by the City Council.
• Unreserved/Undesignated Fund Balance is the portion of fund, balance that is
available to be spent by the City Council.
Proprietary Fund Types:
• Retained Earnings is the accumulated earnings of an enterprise or internal service
fund.
• Contributed Capital is the permanent fund capital of a proprietary fund created when
assets are contributed to a proprietary fund or a residual equity transfer is made to a
proprietary fund.
Fiduciary Fund Types:
Pension Trust Fund
Reserved fund balance is the portion of fund balance reserved for future pension
payments.
14 -�
MW
Peat Marwick LLP
Orange County Office
Center Tower
650 Town Center Drive
Costa Mesa,CA 92626
Inde ndent Auditors'Rtport
The Honorable Members of the City Council
City of Huntington Beach,California:
We have audited the general purpose financial statements of the City of Huntington Beach, California, as
of and for the 15 months ended September 30, 1994, as listed in the accompanying table of contents.
These general purpose financial statements are the responsibility of the City's management. Our
r . responsibility is to express an opinion of these general purpose financial statements based on our audit.
f. We conducted our audit in accordance with generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the general
< < purpose financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the general purpose 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 audit
provides 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 Huntington Beach,California, as of September 30, 1994,and
{ the results of its operations and cash flows of its proprietary fund types for the 15 months then ended in
i conformity with generally accepted accounting principles.
r , As discussed in note 22 to the general purpose financial statements,the City deposits a significant portion
of its monies in the Orange County investment pool. On December 6, 1994,the County of Orange filed
f s for protection under Chapter 9 of the U.S.Bankruptcy code. An estimate of the loss,if any, and the City's
ability to access these monies on a timely basis cannot be made at this time and the accompanying general
{ ! purpose financial statements have not been adjusted to reflect these conditions.
I
F Our audit was made for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The combining, individual fund and individual account group financial statements and
schedules listed in the accompanying table of contents are presented for the purpose of additional analysis
and are not a required part of the general purpose financial statements of the City of Huntington Beach,
California. Such information has been subjected to the auditing procedures applied in the audit of the
T general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the general purpose financial statements taken as a whole.
i
January 27, 1995
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ilossMember Firm of
Kly ald Peat Marwick Goerdefer
CITY OF HUNTINGTON BEACH
COMBINED BALANCE:SHEET-ALL FUND TYPES AND A^•COUNT GROVPr'
SEPTEMBER 31� '194
(IN THOUSANDS)
GOVERNMENTAL FUNDS PROPRIETARY FUNDS
ASSETS AND OTHER DEBITS General Special Revenue Debt Service apical Projects Enterprise Internal Service
Cash and Investments(Notes le and 3) $16,810 $201192 $14,251 $10,217 $7,938
Cash With Fiscal Agent(Nola 3) 6,239 183 464 5
Taxes Receivable(Note 1) $8,694 58 393
Other Receivables 2,184 2,652 276 595 3,997 242
Unbilled Receivables(Note 1b) 1,457
Inventory(Note 1g) 450 711
Due from Other Funds(Note 10) 111 7,173 1,604
Deposits and Other Assets 230 3,193 50 662
Advances to Other Funds(Note 10) 77,454 4,620 30,031 2,383 5,004
Investment in Joint Venture(Note 18) 5 514
Land Held for Resale(Note 10 16,983
Property,Plant and Equipment (Net)(Note tf and 15) 39,216 12,568
Amount Available in Debt Service Funds(Note 16)
Amount to be Provided for Payment of Long-Term Debt
TOTAL ASSETS AND OTHER DEBITS $89 012 $27,333 $57,131 $34,556 $68.244 $23,533
LIABILITIES,FUND EQUITY AND OTHER CREDITS
LIABILITIES
Accounts Payable $1,393 $1,0DO $258 $2,548 $72
Other Accrued Liabilities 1,349 5B $96 15 178 33
Deposits 182 131 20 2,345
Leases Payable(Note 16) 627
Due to Other Funds(Note 10) 5,762 727 1,766 519 87
Tax and Revenue Anticipation Notes 15,OD0
Advances from Other Funds(Notes 10 and 12) 244
Deferred Compensation(Note 4)
Claims Payable(Note 9) 10,860
Funds Held for Others
Other Deferred Revenue(Note 5) 58,274 7,191 128
Deferred Taxes(Note 5) 6,418 393
Current Portion of Long-Term Debt 124 1,367
Long-Term Debt(Notes 12 and 13) 6,952 1,058
Compensated Absences(Notes 1j,12,13) 331 25
TOTAL LIABILITIES 73,378 9,107 15,489 2,187 13,241 14,129
FUND EQUITY AND OTHER CREDITS
Contributed Capital(note 11) 41,101 18,026
Investment in General Fixed Assets
Retained Earnings(Accumulated Deficits)(notes 16 and 19) 13,902 (8,622)
Fund Balances(Deficits)(Notes 16,19):
Reserved 20,797 7,197 41,642 32,925
Unreserved
Designated 1,696 790
Undesignated (5,163) 9,333 (1,346)
TOTAL FUND EQUITY AND OTHER CREDITS 15,634 18,226 41,642 32,369 55,003 9,404
TOTAL FUND EQUITY,LIABILITIES AND OTHER CREDITS $89,012 $27,333 $57 131 $34 556 $68.244 $23,533
See Notes to General Purpose Financial Staternens 2
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k.Fund Equity:
Account Groups
Investment in General Fixed Assets is the City's investment in general fixed assets
recorded at cost.
t }
1. Property Tax Revenue:
Property tax in California is levied according to Article 13-A of the California
Constitution. The basic levy is a countywide-levy of one percent of total assessed
valuation and is allocated to county government,. school districts, cities and special
districts. Additional levies require two-thirds approval by voters and are allocated
directly to the specific government. Property tax revenue is recognized in the fiscal year
levied provided that the revenue is collected during the year or within 60 days of year-
end.
The County acts as a collection agent for property tax for all of the local governmental
f units. Property taxes are normally collected twice per year. ,The property tax calendar is
as follows:
• Lien Date- March 1st-
Prior Fiscal Year
• Levy Date-July 1st-Prior Fiscal Year
Due Date, First Installment- November 10th
• Due Date, Second Installment- February 10th
Delinquent Date, First Installment- December 11th
Delinquent Date, Second Installment-April 10th
I The taxes are paid to the local governments periodically during the year. Below are the
dates and percentages of the payments from the County (dates and percentages vary
slightly from year to year).
• November 30th- 5%
• December 19th-20%
• December 28th-20%
February 1st- balance of first installment
• March 28th-5%
April 26th- 34%
July 26th- balance of second installment
ii
f '
r
i
15
I
i }
CITY OF HUNTINGTON BEACH
NOTES . TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 303 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
1. Property Tax Revenue:
The City's fiscal year differs from the fiscal year of the County of Orange (the collection
agent for property tax). At year-end the City records unearned property taxes receivable
which represent amounts generated from July 1st through September 30 (within the
City's fiscal year) which were due after the end of the City's fiscal year and paid to the
City more than 60 days after the end of the fiscal year_ Note 5 details the amounts and
funds involved.
m.Allocation of Interest Income Among Funds:
The City pools all non-restricted cash for investment purchases and allocates interest
income based on month-end cash balances. Funds that have restricted cash record -
interest income in the respective fund.
n. Equipment Replacement Fund:
All machinery and equipment not owned by proprietary funds are owned by the
Equipment Replacement Fund, an internal service fund, and leased to user departments.
All machinery and equipment not replacing existing equipment is purchased by the
respective fund and transferred to the Equipment Replacement Fund. The City records
this transaction as a capital outlay expenditure in the fund making the purchase and
contributed capital in the Equipment Replacement Fund.
o. Total Columns on Financial Statements:
The combined financial statements include "total (memorandum only)" columns which
total the financial statement amounts of the fund types and account groups. The columns
are labeled "memorandum only" because the totals are not comparable to a
consolidation since the City does.not eliminate interfund transactions (except for certain
leases between the oversight unit and component units described in note 2).
p.Joint Ventures:
The City is involved in six joint ventures. Three of them are recorded in proprietary
fund types using the equity method of accounting. The net increase or decrease in the
City's equity positron is a non-operating revenue or expense. Three of the joint ventures
are recorded in governmental funds and the City's interest is recorded in the General
Fixed Assets Account Group (see note 18).
16
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
q. Fiscal Year-End:
in December, 1993 the City Council changed the City's fiscal year from the traditional
governmental fiscal year (July 1st to June 30th) to an October 1st to September 30th
fiscal year.. The year-end was changed to allow for better budgetary planning and to
have the City's year-end more closely parallel the local economic cycle. The current
fifteen month year is a one-time situation. Normal twelve month fiscal years will begin
on October 1, 1994,.
r. Cash Flow Statements:
For purposes of the Statement of Cash Flows, the Proprietary and Similar Trust Fund
types consider all cash and investments to be cash equivalents, as these funds
participate in the city-wide cash and investment pool.
2. REPORTING ENTITY:
The City of Huntington Beach is the primary government. Component units are legally
r separate organizations for which the City Council is financially accountable for, or
organizations that if excluded from the accompanying financial statements, would make
them misleading. The component units described below are blended (presented as if
they are part of the primary government) with the primary government for financial
reporting purposes because either the component units have governing bodies identical
to the City's (the City Council) or provide services exclusively to the City. Financial
accountability means the appointment of a voting majority of the component unit's board
and either the ability to impose will by the City or the possibility that the component unit
will provide a financial benefit or impose a financial burden on the City.
f
Huntington Beach Public Facilities Corporation (Public Facilities Corporation)- This
- entity was formed in 1970 to issue bonds to construct the Civic Center and Central
Library complexes. It is financially dependent on the City for all its operations. The
Public Facilities Corporation leases the Central Library complex to the City. The
lease is a capital lease because title to the facility passes to the City upon
termination of the lease. The City Council appointed the Public Facilities
Corporation's original governing body. The Public Facilities Corporation appoints
any replacements but these replacements can be vetoed by the City Council. The
City Council adopts an annual budget for the Public Facilities Corporation which
cannot terminate its lease with the City if the City meets the lease's terms. The
assets and related revenue and expenditures that are used for repayment of the
bonds are recorded in a debt service fund. Assets used to construct capital
improvements were recorded in a capital projects fund. Since the Public Facilities
f
Corporation is a part of the City's reporting entity, the capital lease between the City
and the Public Facilities Corporation is not shown on the combined balance sheet.
t �
17
i
1,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
2. REPORTING ENTITY (CONTINUED):
Park:nct_Authority of the City-of Huntington Beach (Parking Authority)- This entity
was formed in 1967 to issue bonds to construct off-street parking facilities. The City
leases the facilities from the Parking Authority. The City Council serves as the
governing body of the Parking Authority. The lease is a capital lease because the
City Council may, by resolution, dissolve the Parking Authority and deed the assets
to the City. The City Council annually adopts a budget for the Parking Authority,
The Parking Authority is financially dependent on the City for all its operations.
During the year the Parking Authority's bonds were fully retired (see note 12).
Redevelopment Agency of the City of Huntington Beach (the Agency)- This entity
was formed in 1967 to renovate older areas in the City. The City Council serves as
its governing body and adopts its annual budget. The Agency is financially
dependent on the City for all of its operations. The tax increment revenue received
and disbursed by the Agency is recorded in a debt service fund and the capital
improvements made are recopied in a capital projects fund. The Agency's debt is
recorded in the General Long-Term Debt Account Group since these amounts will be
paid from future financial resources.
Huntinaton_Beach Civic Improvement Corporation (Civic Improvement Corporation)-
This corporation was formed to provide for the defeasance of the Huntington Beach
Public Facilities Corporation Leasehold Mortgage Bonds- 1st issue and provide
funds for capital improvements. The City Council serves as the corporation's
governing body. The Civic Improvement Corporation is dependent upon the City for
all of its operations. The Civic improvement Corporation has title to the Civic Center
complex and leases it to the City. It is a capital lease because title to the Civic
Center complex reverts to the City at the end of the lease. The lease cannot be
terminated if the City meets all its financial obligations. The assets pledged for
repayment of the certificates of participation and the related revenues and
expenditures are recorded in the Civic Improvement Corporation Debt Service Fund.
Since the Civic Improvement Corporation is a part of the City's reporting entity, the
capital lease is not shown on the combined balance sheet.
Huntington Beach Public Financing Authority (Public Financing Authority)- This
corporation was formed in March, 1988 to issue debt to finance public improvements
and other capital purchases for the City and Redevelopment Agency. The
Authority's governing body is the City Council which also adopts the annual budget.
The Authority is financially dependent on the City. The Authority's activity is
recopied as both a debt service fund and as a portion of the activity in the
Equipment Replacement Fund (a proprietary fund type).
18 "
3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
2. REPORTING ENTITY (CONTINUED):
The City of Huntington Beach_Community Facilities District 1990-1 (Community
Facilities District), and the Reservoir Hill Assessment District (the Assessment
District) were formed to construct public improvements within the City boundaries. wj
The governing board of these districts is the City Council. The proceeds of debt
issued and the expenditures for the public improvements are recorded in capital
projects funds. The Community Facilities District's debt is not an obligation of the
City and the monies collected for the debt are recorded in an agency fund. The
Assessment District's debt is recorded in a debt service fund.
t The Huntington Beach Auto Business Improvement District (the Business
Improvement District) was formed in 1992 to fund capital improvements within this
f r non-contiguous district. The District's governing body is the City Council. The
business owners within the district petitioned the City Council under the Streets and
Highways Code to form the district which will assist in the funding of an electronic
reader board sign advertising the auto dealers. The district's activity is recorded in
an agency fund.
The joint ventures,described in note 18 are not part of the reporting entity because the
City does not have primary responsibility for their operations. The City is fiscal agent for
f two of these joint ventures (Central Net Authority and the West Orange County Water
Board). The activity of the Central Net Authority is recorded in an agency fund. The
activity of the West Orange County Water Board is recorded in the Water Fund (an
i
enterprise fund).
3. CASH AND INVESTMENTS:
Cash and investments at year-end totaled $110,528,000 and are shown in the
accompanying financial statements as follows (in thousands):
Cash and Investments $74,465
i Cash with Fiscal Agent 36,063
Total &110.528
I The City's investment policy and section 53601 of the California Government Code
allows the following investments:
s ; a. Bankers acceptances
b. Negotiable certificates of deposit
c. Commercial paper
d. Bonds issued by the City
e. Obligations of the United States Treasury
f. Federal Agency Obligations of:
iLA
t ,
19
iI ?
l_
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
3. CASH AND INVESTMENTS (CONTINUED):
Federal Intermediate Credit Bank(FICBs)
Federal Land Bank(FLBs)
Federal Home Loan Bank(FHLBs)
Federal National Mortgage Association (FNMAs)
Small Business Administration (SBAs)
Government National Mortgage Association (GNMAs)
Tennessee Valley Authorities(TVAs)
Student Loan Association Notes(Sallie Mae's)
g. Obligations of the State of California or of any local agency within the
State of California:
The Local Agency Investment Fund (LAIF) and the County of Orange Investment
Pool are special funds of the California State Treasury and the County of Orange,
respectively,through which any qualified local government may pool investments.
h. Repurchase Agreements:
Throughout the year,the City utilized overnight repurchase agreements for temporary
investment of idle cash. Such agreements were used 20 to 22 times per month and
generally did not exceed 10% of the City's investment portfolio.
L Reverse-Repurchase Agreements:
Although the City's investment policy allows reverse-repurchase agreements, the City
did not borrow through the use of reverse repurchase agreements at any time during
the year.
j. Medium-Term Corporate Notes
k. Mutual Funds
The City categorizes its balance of deposits and investments with financial institutions
under the following risk categories:
20
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
3. CASH AND INVESTMENTS (CONTINUED):
Deposits
Category 1- Deposits insured by FDIC, RTC, a state depository insurance fund or a
multiple-financial institution collateral pool, or deposits collateralized with securities
held by the City or the City's agent in the City's name.
Category 2- Deposits collateralized with securities held by the pledging financial
institutions trust department in the City's name.
Category 3- Uncollateralized deposits, or collateralized but the pledged securities
are not held in the City's name.
Investments
• Category 1- Investments insured by SIPC, or where the City or its agent hold the
securities.
• Category 2- Uninsured investments, where the financial institution's trust department
or agent holds the securities in the City's name.
iF
Category 3- Uninsured investments, where the financial institution's trust department
or agent holds the securities but not in the City's name.
i.
kEr 21
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN, MONTHS ENDING SEPTEMBER 301 1994
3. CASH AND INVESTMENTS (CONTINUED):
A summary of the City's deposits and investments at September 30, 1994 is (in
thousands):
DEPOSITS Category Category 2 Category 3 `Bank Balance/Cost
1
Demand Accounts $200 $5,889 $6,089
Cash With Fiscal Agent: 0
Certificates or Deposit 3,116 3,116
Subtotal-Deposits 200 9,005 0 9,205
INVESTMENTS
Corporate motes 2,000 2,000
Federal Mortgage Notes 6,990 6,990
Repurchase Agreements 4,025 4,025
Cash With Fiscal Agent-U.S Treasury Bills 4,295 4,2955
Subtotal 0 17,310 0 17,310
TOTAL CLASSIFIABLE CASH AND $200 $26,315 $0 26,515
INVESTMENTS
UNCATEGORIZED
INVESTMENTS
Investment in L.A.I.F. 5,636
Investment in County 54,130
Pool(Note 22)
Deferred Compensation Investments 28,652
(Note 4)
Pei, 9
Cash
Subtotal 114,942
Less Warrants (4,414)
Outstanding
Total Cash and $110,528
Investments
Deposits and investments, other than Deferred Compensation, are recorded at cost,
which approximates estimated market value (except Investment in County Pool, see
note 22). Deferred Compensation investments consist of mutual funds and are recorded
at market value.
27
CITY OF HUNTINGTON BEACH
-. NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
t ' 4. DEFERRED COMPENSATION:
Permanent City employees may defer a portion of their salary under Section 457 of the
Internal Revenue Code. The City retains title to these funds until the employee
withdraws them, which may take place at termination or any later date. The assets of
r the plan remain subject to the general claims of creditors of the City. The amount of
deferred compensation payable at year-end was $29,866,000. The City has the
fiduciary responsibility to administer the plan, the assets are recorded in an agency fund.
` The City believes it is unlikely that these assets will be used to pay general creditors
II now or in the future.
k i
5. DEFERRED REVENUE:
r
a Certain revenues in governmental funds are deferred until received. Interest on these
amounts varies. The amounts are (in thousands):
� t
a. Property Taxes:
s As described in note 1(I), the City records deferred property taxes for revenues
l j generated but not available at September 30, 1994. These amounts are (in thousands):
General Fund $6,418
Debt Service Funds:
Redevelopment Agency 393
r Total Deferred Property Taxes $6,811
. s
[F i
kr
S
_F
L
Ir
4
` 5 _
r 23
i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 303 1994
5. DEFERRED REVENUE (CONTINUED):
b. Other Deferred Revenue:
GENERAL FUND:
Land Safes from City to Agency from 1982 to 1993 $32,833
Interest on Above Amounts and on Advances through 1993 25,441
TOTAL GENERAL FUND 58,274
SPECIAL REVENUE FUNDS:
Park Acquisition and Development Fund:
Sale of Emerald Cove Site to Redevelopment Agency 1,985
Development Fees Deferred in 1985 248
Land-in-lieu Park Fees 3,192
Interest 948
Total Paris Acquisition and Development Fund 6,373
Sewer Fund
Deferred Development Fees 38
Interest on Developer Fees and Advances to Redevelopment 54
Agency
Total Sewer Fund 92
Gas Tax Fund:
interest on Advances to Redevelopment Agency 326
Grant Fund:
Advanced Payments from Granting Agencies 120
Drainage Fund:
Deferred Development Fees 54
Interest on Developer Fees and Advances to Redevelopment 226
Agency
Total Drainage Fund 280
TOTAL SPECIAL REVENUE FUNDS 7,191
CAPITAL PROJECTS FUNDS:
Capital Improvement Fund:
Interest on Advances to Redevelopment Agency 101
Parking Authority
Interest on Advances to Redevelopment Agency 27
TOTAL CAPITAL PROJECTS FUNDS 128
TOTAL OTHER DEFERRED REVENUE $65,593
24
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
6. RETIREMENT PLAN - NORMAL:
a. Plan Description:
The City contributes to the California Public Employees Retirement System (CALPERS),
an agent, multiple employer retirement system that acts as a common investment and
administrative agent for participating public entities. in California. Generally only an
employee's base salary(excluding overtime) is subject to retirement benefits.
• The plan covers all permanent City employees and temporary employees who work
more than 1,000 hours in a twelve month period. Benefits vest after five years of
service. benefits for employees vary based upon final yearly compensation, safety
or non-safety status, age and retirement. There are two groups of covered
employees:
Safety employees- include swom police, fire and marine safety employees.
Miscellaneous employees- all other covered employees.
Since CALPERS is on a fiscal year ending June 30th, all actuarial calculations for the
City's retirement plan are made on fiscal year ending-June 30th which differs from the
f i City's fiscal year.
b. Employee and Employer Contribution Obligations:
f I The City makes two types of contilibutions for covered employees. The first contribution
represents the amount required to be made by the City (the employer rate). The second
represents an amount which is normally paid by the employee, but is reimbursed to the
employee by the City (the member rate). The member rate is set by contract and
normally remains unchanged.
The employer rate is set by CALPERS and changes from year to year. The employer
rates for the twelve months ending June 30, 1994 are:
Employyer
Rates as a
Percentage
Membership Group: of Waaes
Local Miscellaneous Members 6.730%
Local Safety Members 13.809%
25
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
6. RETIREMENT PLAN - NORMAL (CONTINUED):
b. Employee and Employer Contribution Obligations:
The member rates for the year are as follows:
Member
Rates as a
Percentage
Membershi Group: of Wa es
Local Miscellaneous Members 7%
Local Safety Members 9%
The employer rate contributes the remaining amounts necessary to fund the benefits for
its members, using the actuarial basis recommended by the CALPERS actuaries and
adopted by the Board of Administration.
c. Funding Status and Progress:
Pension benefit obligation is a standardized measure of the present value of pension
benefits estimated to be payable in the future due to employee service to date. It helps
assess the funding status of the system, assess progress made in accumulating enough
assets to pay benefits when due, and make comparisons among employers. This
measure is independent of the funding method used to determine City contributions to
the system.
CALPERS conducted an actuarial valuation to determine the City's pension benefit
obligation as of June 30, 1994. Significant actuarial assumptions used were as follows:
• Rate of return on present and future assets-8.75% per annum
Projected salary increases for covered employees due to inflation- 4.5% per year
• Projected salary increases due to merit- .75% per year.
• Across the board real salary increases- 1.75% (2.00%for safety)
• Postretirement benefit increases- 0%
The unfunded pension benefit obligation at June 30, 1994 was$5,678,326.
There was no change from the prior year due to changes in benefit or actuarial provisions.
26
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
6. RETIREMENT PLAN - NORMAL (CONTINUED):
c. Funding Status and Progress:
Other actuarial information is(in thousands):
Retirees and beneficiaries currently receiving benefits
and terminated employees clot yet receiving benefits $85,984
Current Employees;
Accumulated employee contributions and
investment earnings 53,141
Employer Financed, vested 68,028
Employer Financed, Non-Vested 2,520
Total Pension Benefit Obligation 209,673
Less Net Assets Available for benefits at cost (market
value is$242,550) (203,995
F. Unfunded Pension Benefit Obligation 95-678 -
d.Actuarially Determined Contribution Requirements and Contributions Made:
CALPERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit
cost method and takes into account those benefits that are expected to be earned in the
future as well as those already accrued. This method states that the normal cost for an
employee is the level amount which would fund the projected benefit if it were paid
annually from date of employment until retirement. CALPERS uses a modification of the
Entry Age Cost method in which the employer's total normal cost is expressed as a level
percent of payroll. CALPERS also uses the level percentage of payroll method to
amortize any unfunded actuarial liabilities. The amortization period of the unfunded
actuarial liability ends in the year 2000 for prior service benefits and in 2011 for current
service benefits.
i 1
The significant actuarial assumptions used to compute the actuarially determined
contribution requirement are the same as those used to compute the pension benefit
f obligation, as previously described. The contribution to the system for the year was
$10,640,000 made according to actuarially determined requirements computed through
an actuarial valuation performed as of June 30, 1993 (in thousands):
°k of
CALPERS CONTRIBUTIONS Contribution Payroll
Employee share reimbursed by City $5,365 9.8
Employer Share 5,275 9_ 6
' Total $10.640 �,Q4
Analysis of Employer Share
Normal Cost $5,165 9.5
Unfunded Actuarial Liability 200 .4
Total Employer Share $5.365 U
27 3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
6. RETIREMENT PLAN - NORMAL (CONTINUED):
e. Trend Information:
Trend information gives an indication of the progress made in accumulating enough
assets to pay benefits when due_ Ten year trend information for the City of Huntington
Beach is not published in the CALPERS Annual Report. Therefore, ten years of trend
information are required within the City's financial statements since CALPERS does not
display financial information for individual agencies within their report. The information
below is prepared using the fiscal year end of CALPERS (July 1st to June 30th) 1987188
is the first year that this actuarial information was made available by CALPERS and
until ten years are available, as much information as available will be presented (dollar
amounts in millions):
1986187 1987/88 19W89 1989M 1990/91 1991M 1992193 1993M
Net Assets Available $105.6 $120.6 $139.5 $158.7 $168.6 $183.5 $203.9
for benefits
Pension Benefit $115.3 $126.7 $138.9 $157.4 $171.9 $189.8 209.6
Obligation
Net Assets Available
for benefits 91.6% 95.1% 100.4% 100.8% 98.1% 96.7% 97.1%
expressed as a
percentage of the
pension benefit
obligation
Unfunded Pension $9.7 $6.1 ($_7) ($1.3) $3.2 $6.2 $5.6
Benefit Obligation
Annual Covered $32.1 $34.4 $37.0 $40.4 $45.0 $48.4 $54.5 $54.5
Payroll
Unfunded Pension
Benefit Obligation 28.3% 16.7% (1.5%) (2.8%) 6.9% 11.3% 10.1%
as a percentage
of covered payroll
Employer $4.5 $4.4 $4.5 $4.1 $3.5 $5.0 $5.5 $5.2
Contributions
Employer
Contributions 14.1% 12.7% 11.9% 10.1% 7.8% 10.3% 9.3% 9.7%
expressed as a
percentage of
annual covered
payroll made
according to
actuarially
determined
requirements
1993/94 information is prepared on a twelve month basis.
28
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 302 1994
7. RETIREMENT PLAN - SUPPLEMENTAL:
a.Plan Description:
The City provides a supplemental retirement plan to all employees covered under the
City's normal retirement plan with CALPERS (see note 6). It is a single-employer PERS.
It is a defined benefit plan and will pay the retiree an additional amount to his or her
normal amount for life. The amount will cease upon the employee's death. The amount
is computed at retirement and remains constant for his or her life. All employees
participating in the City's normal plan participate in the supplemental plan. 157 retirees
received benefits during the year.
b. Employer Obligations and Funding Status and Progress:
The City annually transfers the estimated payments for the year from the General Fund
' to a pension trust fund (pay-as-you-go-basis). Cash remaining in the pension trust fund
results from differences between estimated and actual payments_ An independent
actuary conducted a study of the plan and the required funding for the plan. Unless
otherwise stated, the actuarial information for the supplemental plan is identical to the
City's normal plan. The employer contribution rate for all permanent non-safety
f employees this year is 3.34% of base salary for all permanent employees covered under
the City's normal retirement plan_ Below is an analysis of the pension benefit obligation
and unfunded liability for the Ian (in thousands
i Y P ):
Retirees Currently Receiving Benefits $3,388
Active,Vested Safety Employees 4,670
j Active, Vested Non-Safety Employees 5,192
Total Pension Benefit Obligation 13,250
Add Liabilities in Excess of Assets Available at June 30, 52
1994
Unfunded Liability $13.302
The changes in pension benefit obligation during the year were(in thousands):
i Pension Benefit Obligation, Beginning of Year $13,050
' Increase Due to Lack of Funding 1,450
Decrease Due to Assumption Change 0
Decrease Due to Experience Gains (1,300)
s New Participants 50
f
Pension Benefit Obligation, End of Year I13-250
i
t ;
3 .
r ! 29
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
7. RETIREMENT PLAN - SUPPLEMENTAL (CONTINUED):
c. Trend Information
Trend information (July 1 through June 30) is available only from fiscal year 1990/91
forward. Until ten years of trend information is available, the City will present as many
years as are available. The available trend information is(in thousands):
1990/91 1991/92 1992193 1993/94
Net Assets Available for $175 $157 $75 ($52)
benefits
Pension Benefit Obligation $10,507 $11,402 $13,050 $13,250
Net Assets Available for
benefits expressed as a
percentage of the pension 1.67% 1.38% .57% (.09%)
benefit obligation _
Annual Covered Payroll $40,400 $48,400 $54,524 54,529
Unfunded Pension Benefit $10,332 $11,245 $13,050 $13,302
Obligation
Unfunded Pension Benefit
Obligation as.a 25.6% 23.2% 23.9% 24.4%
Percentage of Covered
Payroll
Employer Contributions $400 $240 $240 $240
Employer Contributions
expressed as a
percentage of annual 1.0% .5% .4% .4%
covered payroll made
according to actuarially
determined requirements
d.Accounting for Supplemental Pension Plan:
The City records expenditures for this plan in a pension trust fund. During the year, other
funds contributed $240,000 and the pension trust fund expended $491,000. The total
pension benefit obligation for both the normal and supplemental plans are (in
thousands):
Total Obligation $222,923
Assets Available 203 945
Unfunded Pension Benefit $18.978
Obligation
30
a
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
8. POSTRETIREMENT MEDICAL INSURANCE:
a. Plan Description:
The City agreed via contract with each employee association to provide post-retirement
medical insurance to retirees. The benefits are based on years of service and are
available to all retirees who meet all three of the following criteria:
. At the time of retirement the employee is employed by the city.
. At the time of retirement the employee has a minimum of ten years of service credit or
is granted a service connected disability retirement.
Following official separation from the City, CALPERS grants a retirement allowance.
r The City's obligation to provide the benefits to a retiree ceases when either of the -
following occurs:
. During any period the retiree is eligible to receive health insurance at the expense of
another employer.
f 4
tf;f
• The retiree becomes eligible to enroll automatically or voluntarily in Medicare.
f.l
If a retiree dies, the benefits that would be payable for his or her insurance are provided
to the spouse or family for 18 months. Benefits for insurance premiums are payable
j based on the years of service credit for the retiree. The retiree may use the subsidy for
any of the insurance plans that the City's active employees may participate in.
r _
b.Accounting and Funding:
The Retiree Medical Insurance Fund is an agency fund. Other funds contribute on a
periodic basis. Employees do not contribute. There are no outstanding liabilities at
i year-end. During the year other funds contributed $672,000. The fund gave subsidies of
$387,000. The plan is advance-funded, but not on an actuarial basis. 120 participants
were eligible to receive benefits at September 30, 1994.
9. RISK MANAGEMENT:
The City is exposed to various risks of losses related to torts; theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; natural disasters and
employee health insurance claims.
i
i F
it.
�i
31
i
�_4
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
9. RISK MANAGEMENT (CONTINUED):
The City established a Self-Insurance Fund (an internal service fund) to finance
uninsured risks of loss. This fund provides insurance for individual liability claims of up
to $1,000,000,workers compensation coverage of tip to $350,000 per claim and the first
$100,000 of each health claim. The City is also a participant in the Big Independent
Cities Excess Pool Joint_Powers Authority (see note 18) which provides insurance for
individual liability claims in excess of $1,000,000. The City purchases independent
insurance coverage for health and workers compensation claims in excess of the above
amounts. Settled claims have not exceeded this commercial coverage in any of the past
three fiscal years.
All funds of the City participate in the program and make payments to the Self-Insurance
Fund based on estimated cost information.
The claims liability of $10,860,000 is composed of the following claim totals (in
thousands):
Claim Type Amount
Liability $5,671
Workers Compensation 5,070
Health 119
Total $10 80
The City reports liabilities at year-end to the extent that it can reasonably estimate the
claims prior to the issuance of the financial statements.
Balance Balance,
July 1, September
1993 Additions Reductions 30, 1994
Liability $9,253 $2,270 ($5,852) $5,671
Workers 4,702 3,309 (2,941) 5,070
Compensation
Health 165 4,372 (4,418) 119
Total $14.120 ($13.2 t 1) 210-860
32
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
10. INTERFUND TRANSACTIONS:
a, Receivables/Payables:
Interfund advances at year-end were (in thousands):
Advances Advances
to Other from Other
Funds Funds
General Fund $77,454
Special Revenue Funds:
Sewer 212
Drainage 401
Gas Tax 827
Park Acquisition and Development 3,180
E i —
Debt Service Funds:
Public Financing Authority 30,031
Capital Projects Funds:
Parking Authority 127
Capital Improvement 301
Low-Income Housing 1,955
Enterprise Funds:
Water Utility 5,004
f = Emerald Cove Housing 244
3 General Long-Term Debt Account 119,248
` Group
Totals $119.492 SJJ9.492
f r
i
S.
f
{
_2
I� I
1.1
L.s
33
3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
10. INTERFUND TRANSACTIONS (CONTINUED):
b: Due TolFrom Other Funds
Below is a schedule of amounts due to and due from other funds(in thousands):
Fund: Due From Due to
Other Other
Funds Funds
General Fund $5,762
Special Revenue Funds
Grant Fund 727
Capital Proiects Funds
Redevelopment Agency (Capital 111 1,711 -
Projects Fund)
Library Expansion 8
Art Center 47
Enterprise Funds
Water Utility Fund 7,173
Emergency Fire Medical Fund 508
Refuse Collection Fund 11
Internal Service Funds
Self-Insurance 1,604 87
Trust and AaencyFunds
Retiree Medical Fund 87
Retirement Supplement Fund 114
Total $8,975 $8,975
c• Operating Transfers In/Out:
Below is a schedule reconciling operating transfers in and out:
Operating Transfers In,
Governmental Funds $25,118
Operating Transfers In, Proprietary
Funds 238
Total Operating Transfers In ,S25-35Q
Operating Transfers Out,
Governmental Funds $24,052
Operating Transfers Out, Proprietary
Funds 1.304
Total Operating Transfers Out $25,356
• 34
} CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
I
11. PROPRIETARY FUND SEGMENT INFORMATION:
a. Segment Information for Enterprise Funds:
The City maintains five enterprise funds; Water Utility, Meadowlark Golf Course,
Emerald Cove Housing, Emergency Fire Medical and Refuse. Certain key financial data
are (in thousands):
' Emergency
Meadowlark Emerald Fire Refuse
Water Golf Course Cove Medical Collection Total
I
Operating Revenues $20,983 $240 $746 $2,844 $9,062 $33,875
-Depreciation Expense 1,249 - 82 51 - 1,382
Operating Transfers In - 80 - - 80
Operating Transfers - 26 25 247 313 611
e Out -
Operating income (1,599) 240 328 187 349 (495)
s Loss
E Net Income Loss 264 324 172 60 36 208
Fixed Asset 3,435 - - - - 3,435
f Acquisitions
Net Working Capital 11,897 2,333 1,978 1,151 482 17,841
Total Assets 52,423 5,495 7,250 1,942 1,134 68,244
Long-Term 278 1,477 5,719 38 15 7,527
Obligations Net of
z Current Portion
Total EAuity 1 47,945 3,911 1 1,3751 1,365 467 1 55,063
f b. Contributed Capital:
L.s
The changes in Proprietary Fund Contributed Capital during the year were (in
thousands):
Internal
Enterprise Service
Funds Funds Total
Balance July 1, 1993 $40,854 $16,781 $57,635
Additions- Developer/City 247 1,245 1,492
Contribution
Balance September 30, 1994 $18.026 $59,127
ii
ri
i
35
J
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
i
I I PROPRIETARY FUND SEGMENT INFORMATION (CONTINUED):
b. Contributed Capital:
i
At year end the balances of Contributed Capital consisted of(in thousands):
Year-End
Enterprise Funds: Balance
Water Utility $38,236
Meadowlark Golf Course 1,267
Emerald Cove Housing 1,288
Emergency Fire Medical 311
Total Enterprise Funds 41,101
Internal Service Fund
Equipment Replacement 18,026
Total S52-127
12. GENERAL LONG-TERM DEBT:
The changes in general long-term debt during the year were (in thousands):
Jut/1, Additions Retirements September 30,
1993 1994
1970 Paris Bonds $860 $0 ($415) $445
Public Facilities Corporation Leasehold 1,710 (625) 1,085
Mortgage Bonds
Parking Authority Revenue Bonds 115 (115) 0
Civic Improvement Corporation 21,895 (930) 20,965
Refunding Certificates of Participation
(Civic Center)-1993
Civic Improvement Corporation 16,350 (645) 15,705
Refunding Certificates of Participation
(Police Administration Building)-1993
Compensated Absences 5,317 967 (1,252) 5,032
Advances from Other Funds 114,573 8,290 (3,615) 119,248
1992 Public Financing Authority 33,495 (780) 32,715
Revenue Bonds
Notes Payable 993 (282) 711
Leases Payable 0 148 (30) 118
Reservoir Hill Assessment Bonds 1,395 (90) 1,305
Arbitrage Rebates 88 (88) 0
$196,791 $9,405 ($8,867) $197,329
36
CITY OF HUNTINGTON BEACH
Li
NOTES TO FINANCIAL STATEMENTS
i FIFTEEN MONTHS ENDING SEPTEM. BER 30 , 1994
12. GENERAL LONG-TERM DEBT (CONTINUED):
a. 1970 Park Bonds:
Year of Issuance 1970
Type of Debt General Obligation Bonds
Security Property Taxes
Original Issuance Amount $6,000,000
Interest Rates 6%
Interest Payment Dates March I st,September I st
Principal Payment Dates March 1st
Purpose Financing of Central Park
improvements
Debt service requirements to maturity are(in thousands):
Year Ending Principal Interest Total
September 30,
1995 $445 $27 $472
b. Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds:
Year of Issuance 1972
Type of Debt Leasehold Mortgage Bonds
Security Lease on Civic Buildings
Original Issuance Amount $5,000,000
Interest Rates 5.0%to 5.9%
("I Interest Payment Dates March 1st and September 1st
Principal Payment Dates September 1st
Purpose of Debt Finance Libra!y construction
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September
30,
1995 $340 $56 $396
1997 360 36 396
1998 385 18 403
Totals $1,085 $110 $1,195
37
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
12. GENERAL LONG-TERM DEBT (CONTINUED):
c. Parking Authority Revenue Bonds:
Year of Issuance 1968
Type of Debt Revenue Bonds
Security Transfer from City's General
Fund.
Original Issuance Amount $2,30D,000
Interest Rates 5.25%
Interest Payment Dates March 1st and September 1st
Principal Payment Dates September 1 st
Purpose of Debt Finance parking im rovements
During the year the bonds were retired.
d. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of
Participation (Civic Center Project):
Year of Issuance 1993
Type of Debt Refunding Certificates of
Participation
Security Lease on Civic Buildings
Original Issuance Amount $21,895,000
Interest Rates 2.75%to 5.5%
Interest Payment Dates Februa 1st and Au ust 1st
Princi al Payment Dates August 1st
Purpose of Debt Refinance 1986 Civic
Improvement Corporation
Certificates of Participation
Year Ending Principal Interest Total
September 30,
1995 $540 $1,120 $1,660
1996 560 1,100 1,660
1997 585 1,077 1,662
1998 610 1,050 1,660
1999 640 1,022 1,662
2000-2016 18,030 10,212 28,242
Total $20,965 $15,581 $36,546
38 .
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 309 1994
12. GENERAL LONG-TERM DEBT (CONTINUED):
e. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of
Participation (Police Administration Project):
Year of Issuance 1993
Type of Debt Refunding Certificates of
Participation -
Security Lease on Civic Buildin s
Original Issuance Amount $16,350,000
Interest Rates 4.0%to 5.70,Lo
Interest Payment Dates February 1 st and August 1 st
Principal Payment Dates August 1st
Purpose of Debt Refinance 1989 Civic
Improvements Corporation
Certificates of Participation -
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September 30,
1995 $330 $838 $1,168
1996 340 826 1,166
1997 355 811 1,166
1998 370 795 1,165
1999 385 769 1,154
2000 and after 13,925 9,354 23,279
Total $15,705 $13,393 $29,098
f. Compensated Absences Payable:
There is no fixed payment schedule to pay the governmental fund liability of$5,032,000
for compensated absences through September 30, 1994.
g. Long-Term Advances from Other Funds:
There is no fixed payment schedule for the Redevelopment Agency to repay the long-
term advances from the City and for the long-term advances from the Water Fund to the
Pier Rebuilding Fund at year-end (in thousands): The changes in governmental fund
long-term debt due from other funds for the fiscal year ending September 30, 1994 (in
thousands):
39
CITY OF .HUNTINGTON BEACH ;
NOTES TO FINANCIAL STATEMENTS ,
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994 1
4"
a
a b
12. GENERAL LONG-TERM DEBT (CONTINUED):
g.Long-Term Advances from Other Finds:
REDEVELOPMENT AGENCY ADVANCES
I
GENERAL FUND:
Direct Advances from 1979 to 1987 $7,293
Direct Cash Advances from Proceeds of 1988 Public 4,445
Financing Authority Revenue Bonds Repaid to General
Fund '
Indirect Advances from 1987 to 1994 7,441
Land Sales from 1982 to 1992 32,834
Interest on Above Amounts 25,441
TOTAL GENERAL FUND 77,454
SPECIAL REVENUE FUNDS: ° t
Park Acquisition and Development Fund:
Land Sale in 1993 1,741
Deferred Development Fees 248
Interest on Above Amounts 047 } j
Total Advances from Park Acquisition and 2,936
Development Fund
, f
Sewer Fund:
Advance 1990/91 120
Deferred Development Fees 38 {
Interest on Above Amounts 54
Total Advances from Sewer Fund 212
Drainage Fund:
Advance 1987/88 250 }
Deferred Development Fees 54
Interest on Above Amounts 97 ;
Total Advances from Drainage Fund 401
Gas Tax Fund:
Advance in 1988/89 500
Interest on Above Amount 327
Total Gas Tax Fund 827 '
TOTAL SPECIAL REVENUE FUNDS 4,376
CAPITAL PROJECTS FUNDS:
Capital Improvement Fund: '
Advance in 1989190 200
Interest on Above Amounts 101
Total Capital Improvement Fund 301
Parking Authority:
40 ,
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
: FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
Advance in 1991/92 100
Interest on Above Amounts 27
Total Parking Authority 127
Low-Income Housing Fund
Advances for Educational Revenue Augmentation Fund 592
Advances to Redevelopment Capital Projects Fund 1,363
Total Low-Income Housing Fund 1,955
TOTAL CAPITAL PROJECTS FUNDS 2,383
DEBT SERVICE FUNDS:
Public Financing Authority:
Advances from 1991/92 30,031
ENTERPRISE FUNDS:
Water Fund:
Advances from 1986/87 to 1988/89 1,138
Interest on Above Amounts 812
TOTAL ENTERPRISE FUNDS 1,950
TOTAL AGENCY ADVANCES 116,194
NON AGENCY ADVANCES
Advances from Water Fund to Pier Rebuilding Fund 2,500
Interest on Above Amounts 554
TOTAL NON-AGENCY ADVANCES 3,054
TOTAL ADVANCES FROM OTHER FUNDS 119,248
Advances July 1, 1993 $114,573
Advances Made 1,565
Advances Repaid (3,615)
Accrued Interest Reported in Other Funds as 6 725
Deferred Revenue
Advances September 30, 1994 $119-248
41
3 �
i P
CITY OF HUNTINGTON BEACH
NOTES TOFINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 302 1994
, t
12. GENERAL LONG-TERM DEBT (CONTINUED): ,
h.Public Financing Authority Revenue Bonds:
9
a
Year of Issuance 1992
Type of Debt Revenue Bonds
Security Loan Agreements with f
Redevelopment Agency
Original Issuance Amount $33,495,000
Interest Rates 4.0%to 7.0%
Interest Payment Dates August 1st and February 1st
Principal Payment Dates Au ust 1st
Purpose of Debt Provide funds to amend i
agreements with Robert Mayer
Corporation_Remove
restrictive covenants on, and
refinance 1988 Public
Financing Authority Revenue
Bonds. ;
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September
30,_ y
1995 $430 $2,256 $2,686
1996 445 2,232 2,677
1997 480 2,206 2,686
1998 500 2,178 2,678
1999 530 2,148 2,678
2000 and 30,330 31,851 62,181
after
Total $32,715 $42,871 $75,586
42
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
}
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
12. GENERAL LONG-TERM DEBT(CONTINUED):
i. Miscellaneous Notes Payable:
Mortgages in MaintPier Redevelopment Project Area
Year of Issuance 1988
Type of Debt First trust deed mortgage
Security Real property
Original Issuance Amount $881,000
Interest Rates 7.75% variable rate
Interest Payment Dates month)
Principal Payment Dates month)
Pur
pose of Debt Purchase of property
Debt service requirements to maturity are (in thousands):
Year Ending Principal interest Total
September
30,
1995 $52 $65 $117
1996 52 60 112
1>397 52 55 107
1998 52 50 102
1999 52 45 97
2000 and 451 180 631
after
Totals $711 $455 $1,166
j. Leases Payable Camara/Truck:
Year of Issuance 1993
Type of Debt Capital Lease
Security Lease Agreement
Original Issuance Amount $148,000
Interest Rates 5.8%
Interest Payment Dates February 1 st and August 1 st
Principal Payment Dates February 1st and August 'Est
Purpose of Debt Purchase of Truck
43
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994 ?
� I
12. GENERAL LONG-TERM DEBT (CONTINUED):
j. Leases Payable Camera/Truck:
Year Ending Total 1
September 30, Payment
1995 $25 z
1996 25
1997 25
1998 25
1999 25
2000 12 q
Total Minimum 137
Lease Payments
Less Interest (19)
Total Present $118
Value of Future -
Minimum Lease
Payments
k. Reservoir Hill Assessment Bonds:
Year of Issuance 1989
Type of Debt 1915 Improvement Act Assessment
Bonds
Security Pro erty tax assessments `
Original Issuance Amount $1,653,905
Interest Rates 6.5%to 8.1%
Interest Payment Dates March 2nd and September 2nd i j
Principal Payment Dates September 2nd
Purpose of Debt Capital improvements
Debt service requirements to maturity are (in thousands): i
Year Ending Principal Interest Total �.
September
30
1995 $50 $104 $154
1996 55 101 156
1997 55 96 151
1998 55 92 147
1999 60 87 147
2000 and 1,030 517 1,547
after
Total $1,305 $997 $2,302
44
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
12. GENERAL LONG-TERM DEBT (CONTINUED):
j.Arbitrage Rebates:
The City had no arbitrage rebates payable at year-end.
13. PROPRIETARY FUND LONG-TERM DEBT:
Below is a summary of changes in proprietary fund long-term debt for the year (in
thousands):
July 1, Additions Retirements September 30,
..1993 1994
Meadowlark Golf Course Note $1,561 ($40) $1,521
1991 Emerald Cove Certificates of 5,710 (155) 5,555
Participation
Compensated Absences 261 197 (102) 356 _
Advances from Other Funds 244 0 244
Leases Payable 900 (273) 627
Claims Payable 14,120 9,951 (13,211) 10,860
Pubfic Financing Authority Certificates 3,525 (1,100) 2,425
of Participation
Total $26,321 $10,148 ($14,881) $21,588
The above total is reported in the accompanying financial statements as follows (in .
thousands):
Internal
Enterprise Service
Funds Funds Total
Advances from Other $244 $- $244
Funds
Current Portion of 124 1,367 1,491
Long-Term Debt
Long-Tema Debt 6,952 1,058 8,010
Leases Payable 627 627
Claims Payable 10,860 10,860
Compensated 331 25 356
Absences
Total $7.651 ;,12,Q37 $21.588
45
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 303 1994
13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED): T I
a. Meadowlark Golf course Note Payable:
Year of Issuance 1974
Type of Debt Note payable i
Security Revenues of Meadowlark-Golf
Course
Ofiginal Issuance Amount $2,228,000
Interest Rates 7.0%
Interest Payment Dates February 28th
Principal Payment Dates February 28th
Purpose of Debt Purchase of golf course
Year Ending Principal Interest Total
September
30,
1995 $43 $107 $150
1996 46 104 150
1997 47 100 147
1998 53 97 150
1999 57 93 150
2000-2009 1,275 548 1,823
Totals $1,521 $1,049 $2,570
b. 1991 Emerald Cove Certificates of Participation (Redevelopment Agency):
Year of Issuance 1991
Type of Debt Certificate of Participation
Security Lease With City for Apartment
Complex
Original Issuance Amount $5,740,000
Interest Rates 4.8%to 7.0%
Interest Payment Dates March 1st and September 1st
Principal Payment Dates March 1st
Purpose of Debt Refinance 1984 Emerald Cove
Certificates of Participation
45
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED):
b. 1991 Emerald Cove Certificates of Participation (Redevelopment Agency):
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September
30,
1995 $80 $378 $458
1996 85 375 460
1997 90 369 459
1998 95 364 459
1999 100 359 459 -
2000 and 5,105 5,006 10,111
after
Total $5,555 $6,851 $12,406
c. Compensated Absences:
There is no fixed repayment schedule to pay the compensated absences for proprietary
fund types of$356,000 at year-end.
d.Advances from Other Funds:
There is no fixed repayment schedule to repay the amounts advanced from the Park
Acquisition and Development Fund (a special revenue fund) to the Emerald Cove
Housing Fund (an enterprise fund) of$244,000 at year-end.
e. Claims Payable:
There is no fixed repayment schedule for estimated claims payable of $10,860,000 at
year-end (see note 9). The City will pay the claims when it reaches final settlements on
outstanding litigation.
47
i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS h
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
13. PROPRIETARY FUND LONG-TERM DEBT(CONTINUED):
f. Leases Payable Helicopter:
Year of Issuance 1993 t
Type of Debt Capital tease i 1
Security Lease Agreement
Ori inal Amount $986,000
Interest Amount 6.1%
Interest Payment Dates August 1 st, February 1 st
Principal Payment Dates August 1st, February 1st
Purpose of Debt ASquire Helicopter
t �
The future minimum lease payments under this capital lease are (in thousands):
_ Year Ending Amount i
September 30,
1995 $234 l
1996 234j
1997 234
Total minimum
lease payments 702
Less interest (755)
Present value of
future minimum
lease payments
g. Public Financing Authority Certificates of Participation:
I
Year of Issuance 1989 1
Type of Debt Certificates of Participation
Security Lease With City on Equipment
Original Issuance Amount $5,510,000 3
Interest Rates 6.75%to 6.95%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates February 1 st
Purpose of Debt Purchase Communications '
System
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September
30,
1995 $1,170 $168 $1,338 �
1996 1,255 87 1,342 ;
Totals $2,425 $255 $2,680
48 ,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN -MONTHS ENDING SEPTEMBER 309 1994
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS:
a. Defeased Debt Outstanding:
At year-end the following long4erm, defeased debt was outstanding that is not recorded
in the financial statements:
Public Facilities Corporation 1972 $3,095,000
Leasehold Mortgage Bonds
Public Financing Authority 1988 24,975,000
Lease Revenue Bonds
Civic Improvement Corporation 1986 18,300,000
Certificates of Participation
Civic Improvement Corporation 1989 .14,290,000
Certificates of Partici ation
b.Community Facilities District 1990191 Special Tax Bonds:
Year of Issuance 1990
Type of Debt Community Facilities District
Assessment Bonds
Security Special Tax Levies
Original Issuance Amount $2,400,000
Interest Rates 6.35%to 7.60%
Interest Payment Dates April 1st and October 1st
Principal Payment Dates October 1st
Purpose of Debt Public improvements and
lice and fire services
These bonds are excluded from the accompanying financial statements since the City is
not liable to make any payment on the bonds if taxes collected.are not sufficient to pay
the debt service. Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September
30,
1995 $25 $176 $201
1996 30 174 204
1997 30 171 201
1998 30 169 199
1999 40 167 207
2000 and 2,185 2,304 4,489
after
Total $2,340 $3,161 $5,501
49
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
� E
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS I
(CONTINUED):
; l
c.Other"No-CommiMnent"Debt:
The City is involved in various bond issues where the City or Redevelopment Agency '
issued bonds to assist in the financing of residential developments. A trustee holds all
funds and payment cannot be made from any other source than the mortgages
received. t
These bond issues are:
Original lssue
Bond Issue Amount
Five Points Senior Project Multi-
Family Housing Revenue a
Bonds-Series A- 1991 $9,500,000
Seabridge Villas Project Multi-
Family Housing Revenue
Bonds-Series A- 1985 25,000,000
Rivermeadows Variable Rate
Demand Bonds-1985 Series A 10,000,000 1
Huntington Breakers Mortgage
Revenue Bonds Refunding
Issue- 1989 16,000,000 t
Huntington Breakers Mortgage
Revenue Bonds-Original 1
Issue- 1983 16,000,000
Warner Avenue Apartment Project
Multi-Family Housing Revenue '
Bonds-October, 1985 8,165,000
1983 Series A Mortgage Revenue
Bonds 20,000,000
1984 Series A Mortgage Revenue
Bonds 20,000,000
rn
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
15. FIXED ASSETS AND CAPITAL LEASES:
a. Changes in Fixed Assets:
The changes in the general fixed assets account group for the year are (in thousands):
Balance, Additions Dispositions Balance,
July 1, 1993 September 30,
1994
Land $66,805 $1,004 ($1,379) $66,430
Buildings 50,606 9,436 (732) 59,310
other 1,949 58 2,007
Construction in Process 6,489 6,614 (9,356) 3,747
Joint ventures 648 212 (103) 757
Total $126,497 $17,324 ($�11,570� $132,251
R'e Smppp
The changes in proprietary fund fixed assets for the year are (in thousands):
ENTERPRISE Balance,July Additions Dispositions Balance,September
FUNDS: 1,1993 30,1994
Land $4,731 $4,731
Buildings 6,811 6,811
construction in Process 35 2,638 2,673
Machinery and 53,626 800 (233) 54,193
Equipment
Total Cost 65,203 3,438 (233) 68,408
Less Accumulated (28,028) (29,192)
Depreciation
Net Book Value $37,175 $39,216
Enterprise Funds
INTERNAL SERVICE Balance, Additions Dispositions Balance,September
FUNDS: July 1,1993 30,1994
Machinery and 31,508 2,216 (961) 32,763
Equipment
Less Accumulated (18,373) (2,885) 1,063 (20,195)
Depreciation
Net Book Value Internal $13,135 ($669) $102 $12,568
Service Funds
51
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
15. FIXED ASSETS AND CAPITAL LEASES (CONTINUED):
b.Leases:
The City has two lease agreements that qualify as capital leases.
Helicopter- The City entered into a capital lease agreement containing a bargain
purchase option to finance a helicopter purchase. The lease is a capital lease. The City
recorded the helicopter as an asset in the Equipment Replacement Fund (an internal
service fund) at the present value ($986,000) of the future minimum lease payments at
the lease's inception.
The equipment is carried in the accompanying financial statements as follows:
Machinery and Equipment $986
Less Accumulated
Depreciation
Carrying Value 5789
Information on the future minimum lease payments is shown in note 13. This amount is
recorded as a liability on the balance sheet of the Equipment Replacement Fund.
Camera Truck.- The City entered into a capital lease agreement containing a bargain
purchase option to finance the purchase of a specialized camera and truck. The lease
is a capital lease and is recorded in the genera; long-term debt account group.
Information on the present,value of the future minimum lease payments is shown in
note 12. The asset is recorded in the general fixed assets account group at the present
value of the future minimum lease payments at the time of the lease's inception
($148,000).
16. RESERVES AND DESIGNATIONS OF FUND EQUITY:
The City maintains reserves and designations of fund equity in its governmental funds.
Reserves are amounts that cannot be appropriated in future periods or which are legally j
set aside for a specific use. Designations are amounts that the City has made tentative
plans to use in a future period. The City's reserves and designations at year end are (in
thousands):
L j
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 309 1994
16. RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED):
General Special Debt Service Capital Projects Trust and Total
Fund Revenue Funds Funds Agency
Funds Funds
Reservations:
Encumbrances $1,167 $6,398 $10,355 $17,920
Long-Term Receivables 19,180 799 30.031 2,255 52,265
Capital Projects 3,332 3,332
Debt Service 11,611 11,611
Pension Payments (114) (114)
Land Held for Resale 16,983 16,983
Inventory 450 450
Total Reserved Fund Equity 20,797 7,197 41,642 3Z925 (114) 102,447
Designated for Future 1,696 790 2,486 -
Expenditures
Total Reserved and Designated $20,797 $8,893 $41,642 $33,715 ($114) $104,933
Fund Equity
17. COMMITMENTS AND CONTINGENCIES:
a. Legal Actions:
There are legal actions pending against the City resulting from normal operations. In the
opinion of management and the City Attorney, the financial resolution of these actions
should not have a significant impact on these financial statements.
b.Owner Participation Agreement-Abdelmuti:
In 1991, the Agency agreed to assist a private business in the demolition and the
construction of a new building in the Main/Pier project area. The Agency agreed to make
public improvements totaling $500,000 and to loan the business$3,980,000 for 15 years
at 7% interest to make building improvements. At year-end loan disbursements totalled
$2,975,000 and there was$52,000 of unpaid, accrued interest on the loan.
c. Five-Points Seniors Housing:
In 1991 the Redevelopment Agency agreed to loan $500,000 over 5 years in $100,000
increments beginning in 1993/94 to a private partnership to facilitate affordable senior
housing. At year-end $400,000 remained to be loaned.
53
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 302 1994
}
17. COMMITMENTS AND CONTINGENCIES (CONTINUED):
d.Driftwood Mobilehome Acquisition and Relocation Agreement:
In 1988 the Redevelopment Agency made an agreement with Robert Mayer Corporation i
and a private mobilehomeower's association to purchase and provide relocation benefits '
for up to 10 mobilehomes per year at an agreed value if the owners are unable to sell
their homes on the open market for a minimum of 90 days. To qualify for the buyout, E
the.owners must apply by September 26th of each year, meet the 90 day requirement
and submit an offer letter. If greater than 10 owners qualify, a lottery is held. At year-
end there were 144 remaining mobilehomes on the site. Each November 1st,the agreed
value for each mobilehome type is adjusted by a formula in the agreement. On
November 1, 1993, (the last adjustment date) the average adjusted value was $71,500
per mobilehome. After each home is purchased, the Agency markets the coaches for a
resale at a value substantially less than the purchase price. The Agency's goal is to
clear the site to allow for commercial and residential development. During the fiscal _
period the Agency spent$714,000 for purchase and relocation benefits.
re
e. Disposition and Development Agreement-Huntington Beach Auto Dealers
Association:
� 4
In 1992, the Redevelopment Agency entered into an agreement with the Huntington '
Beach Auto Dealer's Association to construct a large electronic reader board in the s
Huntington Center Project Area. The sign may increase auto sales (and City sales tax
revenues). If the City's share of the sales tax revenue does not increase by a combined 3
$261,000 over the next four years, the Auto Dealer's Association will pay the Agency the 3
difference.
f.Central Net Operations Authority: }
In 1992 the Central Net Operations Authority (CNOA) was formed. CNOA has title to a
building valued at$732,000. If either of the cities of Fountain Valley and/or Westminster
withdraw from CNOA prior to August 20, 2021 the City shall reimburse them by an
amount equal to 1/50th of their contributions. At year-end these amounts totalled
$395,000.
18. JOINT VENTURES:
a. Big Independent Cities Excess Pool Joint Authority:
In 1988, the City and the cities of Pomona, San Bernardino, Santa Ana and Oxnard
formed the Bia Independent Cities Excess Pool Joint Authority (BICEP) to finance a
claims payment pool for certain liability claims in excess of$1 million.
5
3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
18. JOINT VENTURES (CONTINUED):
a. Big Independent Cities Excess Pool Joint Authority:
BICEP's governing board has one representative from each city. The representative
may be a member or designate of the City Council. Any changes to the board must be
approved by the current board members. Each participating City pays an insurance
premium to BICEP that is used to fund the operating and debt service expenditures.
The participants'share of the assets, liabilities and fund equity are as follows:
Huntington Beach 21.43%
Oxnard 15.63%
San Bernardino 19.09%
Santa Ana 30.27%
Pomona 13.59%
Total 100-00%
Long-term debt information is as follows:
Year of Issuance 1988
T of Debt Revenue Bonds
Securit Agreements with cities
Original Issuance Amount $15,055,000
Interest Rates 6.5%to 8.25%
Debt service requirements to maturity are (in thousands):
At June 30, 1994 (the latest information available) condensed, unaudited financial
information for BICEP is as follows(n thousands):
Balance Sheet: BICEP CITY
TOTAL SHARE
Assets $17,275 $3,702
Liabilities 14,878 3,188
Retained Earnings 2,397 514
Revenue and Expense:
Revenues 4,724
Expenses 4,210
Excess of Revenue over Expense 514 514
The activity of BICEP is recorded in the Self-Insurance Fund (an internal service fund).
The City's equity interest is reported as an asset. Changes during the fiscal period are
reported as non-operating revenue or expense_ Separate unaudited financial statements
for the fiscal year ending June 30, 1994 are available.
55
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
18. JOINT VENTURES (CONTINUED):
b.Orange County-City Hazardous Materials Emergency Response Authority:
The City also participates in the Orange County-City Hazardous Materials Emergency
Response Authority(Hazmat Authority). The Hazmat Authority coordinates responses to
hazardous material emergencies to provide an equitable sharing of risks associated with
such emergencies.
The Hazmat Authority consists of the cities of Huntington Beach, Santa Ana, Newport
Beach, Anaheim and the County of Orange. The board of directors consists of a voting
member and an alternate appointed by the governing body of each member agency.
ii
Each year the board of directors adopts a budget and bills the associated costs to each
member agency. Below are the participants shares of the assets, liabilities and fund
equities:
City of Anaheim 25%
County of Orange 25%
City of Santa Ana 25%
City of Huntington Beach 12.5%
City of Newport Beach 12.5%
Total 100-0?A
The June 30, 1994 audited financial information (the latest information available) for the
Hazmat Authority is as follows(in thousands):
Hazmat
Balance Sheet Total City Total
Assets $179 $23
Liabilities 103 13
Equity 76 10
Statement of Revenue and Expense
Revenues 316 39
Expenses 345 43
4)
1 ( 1
Excess of Revenue over Expense (29)Separate audited financial statements are available for this agency.
c.West Orange County Water Board:
The City is involved in a joint-venture with the cities of Westminster, Seal Beach and
Garden Grove formed in 1955 to provide for the operation and maintenance of water
transportation. WOCWB is governed by a five member board. The City appoints two
members while each other participant appoints one member each. Thus no participant
appoints a voting majority. The City acts as fiscal agent for WOCWB and retains
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 303 1994
18. JOINT VENTURES (CONTINUED):
c.West Orange County Water Board:
custody of all assets. Members must either be a member of a City Council or employee
of.a participant. The City records its share of WOCWB's assets as an asset of the Water
Fund and records the other participants' shares as deposits. At year end, the City
recorded the investment in WOCWB as pact of the Water Fund's cash and investments.
WOCWB has no long-term debt and no plant, property and equipment.
Each participants'share of the assets, liabilities and fund equities are:
C! of Huntington Beach 52.5%
City of Garden Grove 7.8%
City of Seal Beach 14.3%
City of Westminster 25.4%
The September 30, 1994 unaudited, condensed financial information for WOCWB is (in
thousands):
Balance Sheet WOCWB City Total
TOTAL
Assets $827 $434
Liabilities 23 13
Equity 804 f421Revenues 4,228
Expenses 3,993 2,096
Excess of Revenue over Expense 235 124
Separate audited financial statements for June 30, 1994 are available for this agency.
d. Central Net Operations Authority:
In July, 1992 the cities of Huntington Beach, Fountain Valley, Newport Beach,
Westminster and the County of Orange formed the Central Net Operations Authority
(Central Net) as a training and dispatch joint-powers entity.
Central Net is governed by a four member board consisting of the Chief Executive
Officer of each entity and, as an alternate, the Fire Chief or designee. Each year the
board adopts a budget and each entity pays a portion of the costs. Each entity's share is
based on the number of recorded incidents during the preceding calendar year and the
number of authorized safety personnel in each entity. The breakdown for the year was:
57
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
18. JOINT VENTURES (CONTINUED):
d.Central Net Operations Authority:
Anency Percent
Huntington Beach 43.1%
Newport Beach 23.3%
Fountain Valley 11.9%
Westminster 21.7%
Total 4M0%
The City will receive title to all communications equipment upon central Net's
termination that occurs when two or more entities withdraw. The City's equity interest is
recorded in the General Fixed Assets Account Group.
Condensed, summary, unaudited financial information for the Central Net Authority for
the fifteen months ending September 30, 1994 was(dollar amounts in thousands):
Central Net
Balance Sheet Total City Total
Assets $768 $304
Liabilities 177 70
Eciuitv 591 234
Statement of Revenue and ENwnse
Revenues 2,397 949
Expenses 1,892 749
Excess of Revenue over Expense 505 200
The financial activity for Central Net Operations Authority is recorded in an Agency
Fund.
e. Public Cable Television Authority:
In 1971 the Public Cable Television Authority (PCTA) was formed to oversee the cable
television franchise agreement for the Cities of Huntington Beach, Westminster, Stanton
and Fountain Valley. PCTA enters into one franchise agreement with a cable operator
and then enters into agreements with the individual cities. PCTA collects all franchise
and utility tax revenue and remits them to the individual cities. PCTA is governed by a
four member body consisting of one councilmember from each city. Each participants
share of the PCTA are:
City of Huntington Beach 62.6%
City of Stanton 5.9%
City of Fountain Valley 15.9%
City of Westminster 15.6%
Total 100.0%
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
18. JOINT VENTURES (CONTINUED):
e. Public Cable Television Authority:
The City's equity interest is recorded in the general fixed assets account group.
PCTA`s fiscal year ends June 30th which is different from the City's fiscal year. Year-
end information is the most recent available. The June 30, 1994 audited financial
information for PCTA is (in thousands):
PCTA
Balance Sheet TOTAL City Total
Assets $804 $503
Liabilities 7 4
E uit 797 499 -
Revenues 1,645 1,030
Ex uses and Distributions 1,700 1,064
Excess of Expense over Revenue 55 34
f. San Joaquin Reservoir Trust:
In 1980 the City entered a joint venture agreement with seven other entities for the
operation and use of the San Joaquin Reservoir. The entity's official name is the §ln
Joaquin Reservoir Trust (the Reservoir Trust). The Metropolitan Water District of
Southern California (MWD) operates the reservoir and acts as administrator. Each of
the owners contributes a portion of the capital and administrative expenditures.
Each participant's share of the Reservoir Trust's financial activity is:
Ownership Expense
Participant % Allocation
Irvine Ranch Water District 46.3 47.3
Mesa Consolidated Water 19.1 19.6
District
City of Huntington Beach 13.1 13.4
Metropolitan Water District 9.8 10.1
of Southern California
South Coast County Water 1.6 1.6
District
Laguna Beach County 5.1 5.2
Water District
City of Newport Beach 2.8 2.8
The Irvine Company 2.2 -
Total 100_� 1oo.a
59
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
18. JOINT VENTURES (CONTINUED):
f. San Joaquin Reservoir Trust:
The City's equity interest in the Reservoir Trust's plant, property and equipment is
recorded as a portion of the Water Fund's plant, property and equipment. The City's
equity interest in the remaining assets is recorded as an asset in the Water Fund. The
Reservoir Trust's fiscal year ends on June 30th, which is different from the City's fiscal
year. The audited information shown below is for the year ending June 30th:
Reservoir
Balance Sheet Trust City Total
Assets $211 $27
Liabilities 171 22
Equ!!y 40 5
Revenues 939 122
Ex
enses 864 112
Excess of Revenue over Expense 75 101
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
19. OTHER INFORMATION:
a. Expenditures Exceeding Appropriations
Expenditures exceeded appropriations at the departmental level in the funds shown as
follows(in thousands):
Amount
Expenditures
Exceed
Appropriations
General Fund:
City Treasurer $8
Police 60
Non-Departmental 799
Debt Service-interest 197
Special Revenue Funds:
Gas Tax Fund:
Public Works 45
Drainage Fund:
Public Works 41
Public Communications:
Administration 21
Park A uisition and Development:
Capital Outlay 97
Debt Service Funds:
Public Financing Authority:
Debt Service - Interest 403
Reservoir Hill:
Non-Deeartmental 4
Debt Service- Interest 2
61
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
I a
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
19. OTHER INFORMATION (CONTINUED):
b. Fund and Retained Eamings Deficits
The following governmental funds had total fund deficits at year-end (in thousands):
Grant Fund-Special Revenue Fund $283
Art Center Fund-Capital Projects 54
Fund
The Grant Fund deficit will be eliminated with future transfers from other funds. The J
deficit in the Art Center Fund will be elimiated with future donations.
The following proprietary funds had deficit retained earnings at year-end (in thousands):
Self-insurance-Internal Service $6,399
Equipment Replacement-Internal 2,223
Service
Retirement Supplement-Trust and 114
Agency Fund
The deficit in the Self-insurance Fund is caused by liabilities for long-term claims
payable being recognized as expense. The City will develop a plan to eliminate this
deficit with increased charges from other City funds,
The deficit in the Equipment Replacement Fund is due to the method of recording the j�
disposition and depreciation of equipment. The contributed capital account is not
relieved when an asset is disposed of or depreciation is recorded. In future years the
City will consider changing this method which will eliminate this deficit.
The deficit in the Retirement Supplement Fund will be eliminated with increased charges
to user departments.
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 301 1994
19. OTHER INFORMATION (CONTINUED):
c. Supplemental Appropriations:
During the year various supplemental appropriations were necessary for items that were
originally budgeted. There was one, large three month budget necessary to budget for
the fiscal year change. None of the supplemental appropriations caused fund deficits
except for those shown in note 19(b).
20. TAX AND REVENUE ANTICIPATION NOTES:
In July, 1994 the Public Financing Authority issued $15,000,000 of tax and revenue
anticipation notes(TRAN) maturing on September 30, 1995 with a stated interest rate of
4.10%. The Public Financing Authority loaned the General Fund $15,003,000 (principal
amount of the TRAN plus premium of $3,000) on July 1, 1994 with an interest rate of
4.10%. On September 30, 1994, the loan was repaid. On October 1, 1994 the amount
was re-loaned to the General Fund.
21. CHANGE IN REPORTING ENTITY'S FISCAL YEAR:
During the year the City Council changed the fiscal year for the City and all of its
component units from the traditional governmental fiscal year(July 1 st to June 30th) to a
October 1st to September 30th year. The accompanying financial statements are for a
fifteen month fiscal period running from July 1, 1993 to September 30, 1994. Normal,
twelve month fiscal years will begin on October 1, 1994.
Due to the City's fiscal year change property tax revenues based on assessed valuation
at March 1st, levied July 1st and due in two equal installments on November loth and
February 10th, which were generated for the period of July 1, 1994 to September 30,
1994 were not recorded as revenue (note 11). Instead, they were recorded as deferred
revenue (note 5a). if the City was allowed to accrue this revenue, the
Undesignated/Unreserved General Fund deficit would be eliminated. The
Unreserved/Undesignated fund balance would then be $1,255,000.
63
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FIFTEEN MONTHS ENDING SEPTEMBER 30 , 1994
7 1
22. SUBSEQUENT EVENT - COUNTY OF ORANGE BANKRUPTCY:
As described in note 3, the City at year-end had on deposit a significant portion
($54,130,000) of its cash and investments with the County of Orange. In December,
1994 the County filed for bankruptcy protection under Chapter 9 of the U.S. Bankruptcy
Code. The County has not completed its plan of reorganization and therefore there are
substantial unresolved issues regarding the City's ability to access its deposits,the value
of these.deposits, the ownership of these deposits, and other matters relating to the
investment pool. Accordingly, a reasonable estimate of the loss, if any, to the City
cannot be made at this time and the accompanying general purpose financial statements
have not been adjusted to reflect this event.
The GENERAL FUND accounts for activity not required to be
accounted for in another fund
f 1
IA
City of Huntington Beach
General Fund
Balance Sheet
September 30,1994
(In Thousands)
ASSETS AND OTHER DEBITS Total
Taxer.Receivable $8,694
Other Receivables 2,184
Inventory 450
Advances to Other Funds 77,454
Deposits and Other Assets 230
TOTAL ASSETS AND OTHER DEBITS $89,012
LLAJMLMES,FUND EQUITY AND OTHER CREDITS
LIABILITIES:
Accounts.payable $1,393
Other Accrued Liabilitim 1,349
Deposits 182
Due to Other Funds 5,762
Deferred Taus 6,418
Other Deterred Revenue 58,274
TOTAL LJABILIITES 73,378
FUND EQUITY AND OTHER CREDITS
Reserved for Inventory 450
Reserved for Encumbrances 1,167
Reserved for Long-Term Receivables 19,180
Total Reserved Fund Equity 20,797
Unreserved:
Undesignated (5.163)
TOTAL FUND EQUITY 15,634
TOTAL LIABILITIES AND FUND EQUITY $89,012
65
CITY OF HUNTINGTON BEACH
GENERAL_FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $32,229 $26,940 ($5,289)
Other Taxes 44,203 43,813 (390)
Licenses and Permits 5,162 4,958 (204)
Files,Forfeitures and Penalties 1,845 1,894 49
From Use of Money and Property 9,170 8,241 (929)
From Other Agencies 11,045 11,457 412
Charges for Current Service 9,954 8,878 (1,076)
Other 1,162 1,053 (109)
TOTAL REVENUES 114,770 107,234 (7,536)
EXPENDITURES:
Current:
City Council 310 282 28
City Administrator 1,190 1,014 176
City Treasurer 889 897 (8)
City Attomey 2,098 2,007 91
City Clerk 526 517 9
Administrative Services 5,178 5,140 38
Community Development 4,569 41223 346
Fire 19,992 19,488 5D4 _
Police 38,9W 39,E (60)
Community Services 9,097 9,053 44
r Library Services 3,403 3,373 30
Public Works 19,265 18,154 1,111
Non-Deparbnerrtal 9,606 10,405 (799)
Capital Outlay 1,591 1,549 42
Debt Service
Interest 410 607 197)
iP
TOTAL EXPENDITURES 117,112 115,757 1,355
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,342) (8,523) (6,181)
OTHER FINANCING SOURCES(USES)
Operating Transfers In 5,588 5,588
Operating Transfers Out (10.406) (10,406)
TOTAL OTHER FINANCING SOURCES(USES) (4,818) (4,818)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (7,16D) (13,341) (6,181)
FUND BALANCE,BEGINNING OF YEAR 28,975 28,975
r i FUND BALANCE-END OF YEAR $21,815 $15,634 (6,181)
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THIS PAGE LEFT BLANK INTENTIONALLY
SPECIAL REVENUE FUNDS account for revenues and
expenditures legally restricted to a specific purpose.
fT
• The Gas Tax Fund accounts for monies allocated under the Streets and Highways
Code of California. Expenditures may be made for any street-related purpose
allowed under the code.
The Sewer Fund accounts for fees received from developers to construct and
maintain sewer facilities.
• The Drainage Fund accounts for fees received from developers to construct and
maintain the City's drainage system.
r
• The Public Communications Fund accounts for revenues from cable television
franchises granted within the City's limits spent on community-oriented television.
The Grants Fund accounts for federal, state and county grants not accounted for in
other funds. The granting agency restricts expenditures to appropriate items.
The Park Acouisition- and Development Fund accounts for fees received from
developers to develop and maintain the City's park system.
The Narcotics Forfeiture Fund accounts for monies received from the State of
California for special law enforcement expenditures,
The Reserve for Economic Uncertainties Fund accounts for monies set-aside for
unforseen economic situations.
The Transportation Fund accounts for monies received from the countywide 1/2
cent sales tax and other specific sources to be spent on transportation-related
expenditures.
• The Air Quality Fund accounts for revenues from the local agencies used to
improve local air quality.
• The Traffic Impact Fee Fund accounts for monies received from the traffic impact
fee levied on new developments in the cities.
t
• The Fourth of July Parade Fund accounts for the activities of the City's annual
parade.
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30.1994
(IN THOUSANDS)
Public
ASSETS AND OTHER DEBITS Gas Tau Sewer Drainage Communications Grants
Cash and Investments $2,849 $4,093 $2,012 $288
Taxes Receivable
Other Receivables 83 96 50 81 674
Advances to Other Funds 827 212 401
Deposits and Other Assets
TOTAL ASSETS AND OTHER DEBITS $3,759 $4,401 $2,463 $369 $674
LIABILITIES,FUND EQUITY AND OTHER CREDITS
LUUNL1T1ES:
Accounts Payable $640 $11 2 ISO 75
Other Accrued liabilities 12 1 3 6 3
Deposits 32
Due to Other Funds 727
Deferred Revenue 326 92 280 120
TOTAL LIABILITTES 978 1D4 285 156 957
FUND EQUITY
Reserved Equity
Reserved for Encumbrances 3,898 612 298 3 987
Reserved for Long-Term Receivables 500 120 121
Total Reserved Fund Equity 4,398 732 419 3 987
Unreserved Equity
Designated for Future Expenditures 336 696 7
undesgr>ated (1,617) 3,229 1,063 203 (1,2TQ)
Total Unreserved Fund Equity (1,617) 3,565 1,759 210
TOTAL FUND EQUITY 2,781 4,297 2,178 213 (283)
TOTAL LIABILITIES AND FUND EQUITY $3,759 $4,401 $2,483 $369 $674
67
s
f
Reserve for
Park Acquisition Economic
and Development Narcotics Forfeiture Uncertainties Transportation Air Quality Traffic Impact Fee Fourth of July Parade Total
$411 $642 $5,000 $1,173 $50 $219 $73 $16,810
43 14 1 58
1,659 7 2 2,652
` 3,180 4,620
3,193 3,193
$6,827 $656 $5,000 $2,832 $51 $226 $75 $27,333
111 5 6 1,000
2 20 7 2 2 58
99 131
727
6,373 7,191
6,486 119 7 7 2 6 9,107
253 5 330 1 11 6,398
58 799
253 5 330 1 69 7,197
24 532 101 1,696
64 5,000 2,394 43 224 9,333
88 532 5,000 2,495 43 224 11,029
341 537 5,000 2,825 44 224 69 18226
$6,827 $06 $5,000 $2,832 $51 $226 $75 $27,333
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CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES(DEFICITS)
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
Public
REVENUES: Gas Tax Sewer Drainage Communications Grants
Other Taxes
Licenses and Permits 61 363
From Use of Money and Property $337 $516 $289 $31 $346
From Other Agencies 5,081 16 438 5,861
Charges for Current Service
Other 2D 5 ri
TOTAL REVENUES 5,438 593 657 546 6,207
EXPENDITURES:
Current:
City Administrator 621 865
Community Development 47 5 123
Fire 14
Police 228
Economic Development 1,966
Community Services
Library Services 140
Public Works 753 112 211 345
Non-Departmental 7
Ceplw Outlay 5,116 _ 495 1,118 91 2,429
TOTAL EXPENDITURES 5,916 612 1,329 712 6,117
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (478) (19) (672) (166) 90
OTHER FINANCING SOURCES(USES)
Operating Transfers In 1,102 72
Operating Transfers Out (2,647) (157) (134) (112)_ (426)
TOTAL OTHER FINANCING SOURCES (1,745) (157) (134) (112) (354)
EXCESS OF REVENUE OVER (UNDER)EXPENDITURES
AND OTHER USES (2,223) (176) (806) (278) (264)
FUND BALANCES(DEFICITS),BEGINNING OF YEAR 5,OD4 4,473 2,984 491 (19)
FUND BALANCES(DEFICITS)-END OF YEAR $2,781 $4,297 $2,178 $213 ($283)
69
Reserve for
Park Acquisition Economic
and Development Narcotics Forfeiture Uncertainties Transportation Air Quality Traffic impact Fee Fourth of July Parade Total
$1,683 $7 $1,690
$709 $483 1,616
241 $88 $96 131 $3 15 2,093
622 1,962 257 14,237
36 2 38
35 285 422
1,021 710 95 3,778 260 498 292 20.096
191 1,677
20 195
14
1,259 1,487
1,966
201 253 454
140
589 257 2,267
7
824 7 623 17 10,720
1,025 1,266 1,212 211 274 253 18,927
(4) (556) 95 2,566 49 224 39 1,169
5,000 30 6,204
(194) (172) (96) (480)
(194) (172) 4,904 (480) (35) 1,551
(198) 928) 5,000 2.086 14 224 69 2,720
539 1,265 739 30 15,506
$341 $537 $5,000 $2,825 $44 $224 $69 $18,226
f
70
CITY OF HUNTINGTON REACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,19$4
(In Thousands)
GAS TAX
Variance
FavoraNe
REVENUES: Budget Azblaf (Unftwrable)
From Use of Money and Property $150 $337 $187
From Other Agencies 4,364 5.081 717
Other 20 20
TOTAL REVENUES 4,514 6,438 924
EXPENDITURES:
Current:
Community Development 50 47 3
Public Works 708 753 (45)
Capital Outlay 6,533 5,116 1,417
TOTAL EXPENDITURES 7,291 5,916 1,375
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2.777) (478) 2,299
OTHER FINANCING USES:
Operating Transfers In 1,102 1,102
Operating Transfers Out (2,847) (2,847)
TOTAL OTHER FINANCING SOURCES(USES) (1,745) (1,745)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (4,522) (2,223) 2,299
FUND BALANCE,BEGINNING OF YEAR 5,004 5,004
FUND BALANCE-END OF YEAR $482 $2,781 $2,299
SEWER
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $37 $61 $24
From Use of Moray and Property 557 516 (41)
From Other Agencies 16 16
TOTAL REVENUES 594 593 (1)
EXPENDITURES.
Community Development 20 5 15
Public Works 194 112 82
Capital Outlay 1,348 495 853
TOTAL EXPENDITURES 1,562 612 950
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (968) (19) 949
OTHER FINANCING SOURCES(USES)
Operating Transfers Out (15D (157)
EXCESS OF REVENUE OVER(UNDER)EXPENDITURES
AND OTHER USES (1,125) (176) 949
FUND BALANCE,BEGINNING OF YEAR 4,473 4,473
FUND BALANCE-END OF YEAR $3,348 $4,297 $949
71
ry
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(In Thousands)
f ?
DRAINAGE
Vanance
Favorable
E REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $180 $363 $183
From Use of Money and Property 185 289 104
Other 5 5
TOTAL REVENUES 365 657 292
EXPENDITURES:
Conant:
Public Works 170 211 (41)
Capital Outlay 2,934 1,118 1,816
TOTAL EXPENDITURES 3,104 1,329 1,775
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,739) (672) 2,067
f ? OTHER FINANCING SOURCES(USES)
Operating Transfers Out (134) (134)
EXCESS OF REVENUE OVER(UNDER)EXPENDITURES
AND OTHER USES (2,873) (806) 2,067
{ FUND BALANCE,BEGINNING OF YEAR 2,984 2,984
k FUND BALANCE-END OF YEAR $111 $2,178 $2,067
PUBLIC COMMUNICATIONS
4 I .
I i Variance
Fawiable
REVENUES: Budget Actml (Unfavorable)
From Use of Money and Property $30 $31 $1
From Other Agencies 425 438 13
Other 12 77 65
TOTAL REVENUES 467 546 79
EXPENDITURES
t Current:
City Administrator 600 621 (21)
Capital Outlay 96 91 5
r TOTAL EXPENDITURES 696 712 (16)
i EXCESS OF REVENUES OVER EXPENDITURES (229) (166) 63
i l
OTHER FINANCING USES
Operating Transfers Out (112) (112)
( � EXCESS OF REVENUE OVER(UNDER)EXPENDITURES
AND OTHER USES (341) (278) 63
FUND BALANCE,BEGINNING OF YEAR 491 491
FUND BALANCE-END OF YEAR $150 $213 $63
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CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 3D,1994
(Continued)
(In Thousands)
GRANTS
Variance
Favorable
REVENUES: Budget Acwal (Unfavorable)
From Use of Money and Property $637 $346 ($291)
From Other Agencies 7,526 5,861 (116W
TOTAL REVENUES 8,163 6,207 (11956)
EXPENDITURES:
Current:
CityAdministwator 1,186 865 321
Community Deve Dpment 123 123
Fire 14 14
Police 295 228 67
Economic Development 2,109 1,966 143
Library Services 152 140 12
Public Works 619 345 274
Non-Departmental ` 7 848
Capital Outlay 5,808 2,429 3,379
TOTAL EXPENDITURES 11,161 6.117 5,044
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,998) 90 3,088
OTHER FINANCING SOURCES(USES):
Operating Transfers In 685 72 (613)
Operating Transfers Out (462) (426) 36
TOTAL OTHER FINANCING SOURCES(USES) 223 (354) (577)
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (2,775) (264) 2.511
FUND BALANCE(DEFICIT),BEGINNING OF YEAR (19) (19)
FUND BALANCE(DEFICIT)-END OF YEAR ($2,794) ($283) 52.511
PARK ACQUISITION AND DEVELOPMENT
Variance
Favorable
REVENUES: Budget Arbmt Nril -able)
Licenses and Permits $471 $709 $238
From Use of Money and Property 27 241 214
From Other Agencies 276 (276)
Charges for Current Service 35 36
Other 20 35 15
TOTAL REVENUES 794 1,021 227
EXPENDITURES:
Current:
Community Services 214 201 13
Capital Outlay 727 824 (97)
TOTAL EXPENDITURES 941 1,025 (84)
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (147) (4) 143
OTHER FINANCING SOURCES(USES)
Operating Transfers Out (194) (194)
EXCESS OF REVENUE OVER EXPENDITURES AND
OTHER USES (341) (198) 143
FUND BALANCE,BEGINNING OF YEAR 539 539
FUND BALANCE-END OF YEAR $198 $341 $143
73
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(In Thousands)
NARCOTICS FORFEITURE
z
Variance
Favorable
f REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $86 $88 $2
From Other Agencies 810 622 (188)
TOTAL REVENUES 896 710 (186)
EXPENDITURES:
CuTrerd:
Police 1,536 1,259 277
Capital Outlay 7 7
r <, TOTAL EXPENDITURES 1,543 1,266 277
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (647) (556) 91
OTHER FINANCING USES:
f Operating Transfers Out (172) (172}
EXCESS OF REVENUE OVER(UNDER)EXPENDITURES
t AND OTHER USES (819) (728) 91
FUND BALANCE,BEGINNING OF YEAR 1,265 1,265
FUND BALANCE-END OF YEAR $446 $537 $91
RESERVE FOR ECONOMIC UNCERTAINTIES
{ S Variance
! 1 Favorable
.i
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $96 $96
OTHER FINANCING SOURCES(USES):
F '.
Operating Transfers In 5,000 5,000
Operating Transfers Out (96) (96)
TOTAL OTHER FINANCING SOURCES(USES) 4,904 4,904
F_ EXCESS OF REVENUE AND OTHER SOURCES OVER
t (UNDER)EXPENDITURES AND OTHER USES 4,904 5,000 96
L FUND BALANCE-END OF YEAR $4,904 $5,000 $96
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CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS(ENDING SEPTEMBER 30,1994
(Continued)
(Expressed in Thousands)
TRANSPORTATION
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Other Taxes
,
From Use of Money and Property 100 131 31
From Other Agencies 2,733 1,962 (771)
Charges for Current Service 2 2
TOTAL REVENUES 3,833 3,778 (55)
EXPENDITURES:
Current:
Public Works 750 589 161
CapitalOuttay 4,457 623 3,834
TOTAL EXPENDITURES 5,207 1,212 3,995
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (1,374) 2,566 3,940
OTHER FINANCING SOURCES(USES):
Operating Transfers Out (480} (480)
EXCESS OF REVENUE OVER(UNDER)EXPENDITURES
AND OTHER USES (1,854) 2,086 3,940
FUND BALANCE,BEGINNING OF YEAR 739 739 -
FUND BALANCE(DEFICIT)-END OF YEAR ($1,115) $2,825 $3,940
AIR QUALITY
Variance
Fawrable
REVENUES: Budget Acbmi (Uatavoiable)
From Use of Money and Property $2 $3 $1
From Other Agencies 230 257 27
TOTAL REVENUES 232 260 28
EXPENDITURES:
Current:
City Administrator 233 191 42
Community Development 20 20
Capital Outlay 21 21
TOTAL EXPENDITURES 274 211 63
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (42) 49 91
OTHER FINANCING SOURCES(USES):
Operating Transfers Out (35) (35)
EXCESS OF REVENUE OVER(UNDER)EXPENDITURES
AND OTHER USES (77) 14 91
FUND BALANCE(DEFICIT),BEGINNING OF YEAR 30 30
FUND BALANCE(DEFICIT)-END OF YEAR ($47) $44 $91
75
3
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(Expressed in Thousands)
TRAFFIC IMPACT FEE
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $213 $483 $270
From Use of Money and Property 15 15
TOTAL REVENUE 213 498 285
EXPENDITURES:
Current:
Public Works 293 257 35
Capital Outlay 267 17 250
TOTAL EXPENDITURES 560 274 286
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (347) 224 571
FUND BALANCE,BEGINNING OF YEAR
i FUND BALANCE(DEFICIT)-END OF YEAR ($347) $224 $571
r
FOURTH OF JULY PARADE
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
1 From Use of Money and Properly $7 $7
Other 100 285 185
TOTAL REVENUE 100 292 192
EXPENDITURES:
t �i Current:
Community Services 569 253 316
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (469) 39 508
i OTHER FINANCING SOURCES(USES)
Operating Transfers In 30 30
z EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (439) 69 508
FUND BALANCE,BEGINNING OF YEAR
FUND BALANCE(DEFICIT)-END OF YEAR ($439) $69 $508
3
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CITY OF HUNTINGTON BEACH
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(In Thousands)
TOTAL SPECIAL REVENUE FUNDS
Variance
Fawrable
REVENUES: Budget AMual (unfavorable)
Other Taxes $1,000 $1,690 $690
Licenses and Permits 901 1,616 715
From Use of Money and Property 1,774 2,093 319
From Other Agencies 16,364 14,237 (2,127)
Charges for Current Service 38 38
Other 132 422 290
TOTAL REVENUES 20,171 20,096 (75)
EXPENDITURES:
Current:
City Administrator 2,019 1,677 342
Community Development 213 195 18
Fire 14 14
Police 1,831 1,487 344
Economic Development 2,109 1,966 143
Community Services 763 454 329
Library Services 152 140 12
Public Works 2,734 2267 467
Non-Departmental 855 7 848 -
Capital Outlay 22.198 10,720 11,478
TOTAL EXPENDITURES 32,908 18,927 13,981
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (12.737) 1,169 13,906
OTHER FINANCING SOURCES(USES):
Operating Transfers In 6,817 62W (613)
Operating Transfers Out (4,689)__ (4,653) 36
TOTAL OTHER FINANCING SOURCES(USES) 2,128 1,551 (577)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (10,609) 2,720 13,329
FUND BALANCE,BEGINNING OF YEAR 15,506 15,506
FUND BALANCE -END OF YEAR $4,897 $18,226 $13,329
77
DEBT SERVICE FUNDS account for the receipts for and
payment of general long-term debt.
• The 1970 Park Bonds Fund accounts for the receipt and payment of
property tax revenues for the 1970 Park Bonds, a general obligation
bond.
• The Redevelopment Agency Debt Service Fund records the property tax
increment revenues received from Redevelopment projects. The tax
increment repays the debt of the Redevelopment Agency.
The Public Facilities Corporation Debt Service.Fund records the debt
service activity of the Huntington Beach Public Facilities Corporation.
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• The Parking Authority Debt Service Fund records the debt service
activity of the Parking Authority of the City of Huntington Beach.
{ ; • The Public Financing Authority Fund records the debt service activity of
the Huntington Beach Public Financing Authority.
€ The Reservoir Hill Debt Service Fund records the debt service activity
-f of the Reservoir Hill Assessment bonds.
i
The Civic Improvement Corporation Fund records the debt service
activity of the Huntington Beach Civic Improvement Corporation.
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CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30.1994
(IN THOUSANDS)
1970 Park Redevelopment Public Facilities Public Financing
ASSETS: Bonds Agency Corporation Parking Authority Authority
Cash and Investments $632 $4,318 $15,147
Cash With Fiscal Agent 464 2,821
Taxes Receivable 393
Other Receivables 14 255
Advances to Other Funds 30,031
TOTAL ASSETS $646 $4,966 $464 $47,999
LIABILITIES AND FUND EQUITY
LIABILITIES:
Other Accrued Liabilities 96
Tax and Revenue Anticipation Notes 15,ODO
Deferred Property Taxes 393
TOTAL LIABILITIES 489 15,0W
FUND EQUITY
Reserved Equity
Reserved for Lorig-Terrin,Receivables 30,031
Reserved for Debt Service 646 4,477 464 2,96E
Total Reserved Fund Equity 646 4,477 464 32,999
TOTAL FUND EQUITY 646 4,477 464 32,999
TOTAL LIABILITIES AND FUND EQUITY $646 $4,966 $464 $47,999
78
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Reservior Hill Civic Improvement
Assessment Dstriet Corporation Total
$95 $20,192
t 110 2,844 6,239
393
3 4 276
30,031
i. $208 $2,848 $57,131
96
15,000
r 393
'F 15,489
1 30,031
i 208 2,848 11,611
208 2,848 41,642
208 2,648 41,642
$208 $2,848 $57,131
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CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
1970 Park Redevelopment public Facilities Public Financing
REVENUES: Bonds Agency Corporation Parking Authority Authority
Property Taxes $532 $4,889
From Use of Money and Property 64 648 20 9 3,560
TOTAL REVENUES 596 5,537 20 9 3,56D
EXPENDITURES:
Current:
Non-Departmental 297 17
Debt Service
Principal 415 1,649 625 115 780
Interest 65 6,146 122 4 3,419
TOTAL EXPENDITURES 480 8,092 747 119 4,216
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 116 (2,555) (727) (110) (556)
OTHER FINANCING SOURCES(USES)
Operating Transfers In 1,445 79B
Proceeds of Long-Term Debt 139
Operating Transfers Out (978) (21) (1,860)
TOTAL OTHER FINANCING SOURCES(USES) 6D6 777 (1,860)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES 116 (1190) 50 (110) (2,516) -
FUND BALANCE,BEGINNING OF YEAR 530 6,426 414 921 35,515
RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers Out (811)
FUND BALANCE-END OF YEAR $646 $4,477 $464 $32,999
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Reservior Will Civic Improvement
Assessment District Corporation Total
$184 $5,605
19 149 4,469
203 149 10,074
18 332
90 1,575 5,249
163 2,924 12,843
271 4,499 18,424
(68) (4,350) (8,350)
4,249 6,492
139
f.., 4,249 3,772
s ;
t I (68) (101) (4.578) -
276 2,949 47.031
} (811)
$208 $2,848 $41,642
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CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND 0
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(in Thousands)
1970 Park Bonds
Variance
Favorable
REVENUES- Budget Azwel (UrftwoMbfa)
Property Taxes $498 $532 $34
From Use of Money and Property 38 64 26
TOTAL REVENUES 536 596 60
EXPENDITURES:
Debt Service:
Principal 415 415
Interest 65 65
TOTAL EXPENDITURES 480 480
EXCESS OF REVENUES OVER EXPENDITURES 56 116 60
FUND BALANCE,BEGINNING OF YEAR 53D 530
FUND BALANCE-END OF YEAR $586 $646 $60
Redevelopment Agency
Variance
Favorable
REVENUES: Budget Actwl (Unhworable)
Property Taxes $4,08 $4,889 $31
From Use of Money and Property 267 648 381
TOTAL REVENUES 5,125 5,537 412
EXPENDITURES:
Current:
Non-Dqmrbnental 359 297 62
Debt Service:
Principal 1,649 1,649
Interest 6,146 6,146
TOTAL EXPENDITURES 8,154 8,092 62
EXCESS OF REVENUES OVER EXPENDITURES (3.029) (2.555) 474
OTHER FINANCING SOURCES(USES):
Operating Transfers In 1,322 1,445 123
Proceeds of Long-Term Debt 139 139
Operating Transfers Out !(U78 f!78)
TOTAL OTHER FINANCING SOURCES(USES) 483 606 123
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES (2,646) (1,949) 597
FUND BALANCE,BEGINNING OF YEAR 6,426 6,426
FUND BALANCE-END OF YEAR $3,880 $4,477 $597
82
3
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
r BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(In Thousands)
[ Public Facilities Corporation
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
i
From Use of Money and Property $30 $20 ($10)
EXPENDITURES:
Debt Service:
f Principal 625 625
Interest 122 122
TOTAL EXPENDITURES 747 747
r EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (717) (727) (10)
s OTHER FINANCING SOURCES
E Operating Transfers In 798 798
Operating Transfers Out _pi) —- -(21) .
(..E TOTAL OTHER FINANCING SOURCES 777 777
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES 60 50 (10)
FUND BALANCE,BEGINNING OF YEAR 414 414
FUND BALANCE-END OF.YEAR $474 $464 ($10)
Li -
Parking Authority
Variance
i- Favorable
REVENUES: Budget Actual (Unfavorable)
( From Use of Money and Property $63 $9 ($54)
i EXPENDITURES
i.. Debt Service
Principal 115 115
f r Interest 4 4
TOTAL EXPENDITURES 119 119
i
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (56) (110) (54)
} FUND BALANCE,BEGINNING OF YEAR 921 921
Residual Equity Transfers Out (811) (811)
3
FUND BALANCE-END OF YEAR $54 ($54)
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CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(In Thousands)
Public Financing Authority
Variance
Favorable
REVENUES: Budget Aetuat (Unfavorable)
From Use of Money and Property $5,343 $3,560 ($1,783)
EXPENDITURES:
Current:
Non-Departmental 17 17
Debt Service:
Principal 780 780
Interest 3,016 3,419 (403)
TOTAL EXPENDITURES 3,813 4,216 (403)
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 1,530 (656) (2,186)
OTHER FINANCING SOURCES(USES)
Operating Transfers Out (iIBM)
EXCESS OF REVENUE OVER EXPENDITURES AND
OTHER USES (330) (2,516) (2,186)
FUND BALANCE,BEGINNING OF YEAR 35,515 35,515
FUND BALANCE-END OF YEAR $35,185 $32,999 ($2,186)
Reservior Hill Assessment District
Variance
Favorable
REVENUES: Budget ACWaI (Unfavorable)
Property Taxes $137 $184 $47
From Use of Money and Property 17 19 2
TOTAL REVENUES 154 203 49
EXPENDITURES:
Current:
Non-Departmental 14 18 (4)
Debt Service:
Principal 90 90
Interest 161 163 (2)
TOTAL EXPENDITURES. 265 271 (6)
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (111) (68) 43
FUND BALANCE,BEGINNING OF YEAR 276 276
FUND BALANCE-END OF YEAR $165 $208 $43
84
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE,FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(Continued)
(In Thousands)
Civic Improvement Corporation
Variance
Favorable
REVENUES: Budget Actual (untavoratde)
From Use of Money and Property $190 - $149 ($41)
EXPENDITURES:
Debt Service:
Principal 1,575 1,575
Interest 3,020 2,924 96
TOTAL EXPENDITURES 4,595 4,499 96
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (4,405) (4,350) 55
OTHER FINANCING SOURCES(USES)
Operating Transfers In 4,371 4,249 (122)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES (34) (101) (67)
FUND BALANCE,BEGINNING OF YEAR 2,949 2,949
FUND BALANCE-END OF YEAR $2,915 $2,848 ($67)
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TOTAL DEBT SERVICE FUNDS
Variance
Favorable
REVENUES: Budget Actual (Untavorabie) -
Property Taxes $5,493 $5,605 $112
r From Use of Money and Property 5,948 4,469 (1,479)
TOTAL REVENUES 11,441 10,074 (1,367)
` EXPENDITURES:
Current:
Non-Departmental 390 332 58
Debt Service:
Principal 5,249 5,249
Interest 12,534 12,843 (309)
r TOTAL EXPENDITURES 18,173 18,424 (251)
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (6,732) (8,350) (1,618)
OTHER FINANCING SOURCES(USES):
r ' Operating Transfers In 6,491 6,492 1
Proceeds of Long Term Debt 139 139
Operating Transfers Out (2,859) (2,M
TOTAL OTHER FINANCING SOURCES(USES) 3,771 3,772 1
EXCESS OF REVENUE AND OTHER SOURCES OVER
r- (UNDER)EXPENDITURES AND OTHER USES (2,961) (4,578) (1,617)
t ! FUND BALANCE,BEGINNING OF YEAR 47,031 47,031
Residual Equity Transfers Out (811) (811)
` FUND BALANCE-END OF YEAR $43,259 $41,642 ($1,617)
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CAPITAL PROJECTS FUNDS account for the acquisition and
construction of capital assets other than those financed by proprietary
fund types.
• The Parking Structure Capital Proiects Fund records the construction
activity of parking structures in the Main/Pier Project Area of the
Redevelopment Agency.
• The Redevelopment Agency Capital Proiects Fund accounts for
acquisition and construction in the five project areas.
The Low-Income Housing Fund accounts for the 20% set-aside of tax
L I increment revenues required by the Califomia Health and Safety Code.
f
The Library Expansion Fund accounts for capital improvements made to
the Central Library.
The Parking Authority Capital Proiects Fund accounts for capital
improvements made by the Parking Authority of the City of Huntington
Beach.
The Capital Improvement Fund accounts for major capital improvements
not made by other capital projects funds or proprietary funds.
L
• The Pier Rebuilding Fund accounts for the rebuilding of the City's pier.
* The Mello-Roos Assessment District Capital Proiects Fund accounts for
expenditures made from the Community Facilities District bonds.
t
• The Reservoir Hill Assessment District Caoital Proiects Fund accounts for
expenditures made from the Reservoir Hill Assessment bonds.
• The Art Center Fund accounts for capital improvements made to the City's
art center.
• The Holly Seacliffe Fund accounts for capital improvements made to the
Holly Seacliffe area.
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CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,1994
(IN THOUSANDS)
Parldng Redevelopment L"4ncome
ASSETS: Structure Agency Housing Library Expansion Parking Authority
Cash and Investments $2,654 $5,110 $2,107 $330 $672
Cash With Fiscal Agent
Other Receivables 85 95 54 2 15
Advances to Other Funds 1,955 127
Deposits and Other Assets
Land Held for Resale(Net) 16,983
Due from Other Funds 111111
TOTAL ASSETS $2.739 $22,299 $4,116 $332 $814
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts Payable 20 $106 $51 $13
Other Accrued Liabilities 9 3 1
Deposits 20
Due to Other Funds 1,711 B
Deferred Revenue 27
TOTAL LIABILITIES 1,76D 109 6D 40
FUND EQUITY:
Reserved Equity:
Reserved for Land Held for Resale 16,983
Reserved for Encumbrances 7,941 1,305 475 239
Reserved for Long Term Receivables 1,955 100 -
Reserved for Capital ProjeGs 2,739 400 -
Total Reserved Fund Equity 2,739 24,924 3,660 475 339
Unreserved Equity:
Designated for Future Expenditures 4
Undesignated (4,385) - 347 (203) 431
Total Unreserved Fund Equity __(4,385) 347 (203)_ 435
TOTAL FUND EQUITY 2,739 20,539 4,007 272 774
TOTAL LIABILITIES AND FUND EQUITY $2,739 $22,299 $4,116 $332 $814
86
Mello-Rccs ReserviGr Hill
Capital Assessment Assessment
Improvement Fund Pier Rebuilding Fund District District Art Center Fund Holly Seacliffe Total
$696 $2,612 $10 $60 14,251
183 183
17 325 2 595
301 2,383
50 50
16,983
111
$1,014 $2,937 $193 $112 $34,556
$61 $2 $5 $258
2 15
20
47 1,766
101 128
162 2 54 2,167
16,983
302 34 56 3 10,355
I J 200 2,255
193 3,332
502 34 193 56 3 32,925
786 790
35D 2,115 _(110)_ 109 (1,346)
350 2.901 (110) 109 (556)
852 2,935 193 (54) 112 32,369
$1,014 $2,937 $193 $112 $34,556
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CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
Parldng Redevelopment Low-Income
REVENUES: Sfruch" Agency Housing Library Expansion Parldng Authority
Other Taxes $691
Licenses and Permits 5
From Use of Money and Property $456 1,117 319 171 61
From Other Agencies
Charges for Current Service 432 180
Other 4,051 72
TOTAL REVENUES 455 6,296 319 423 61
EXPENDITURES:
Current:
City Attorney 158 3
Community Development 5
Economic Development 3,770 247
Community Services 2 229
Public Works 381
Non-Departmental 10
capital Outlay 9 1,314 1,326 4,842 13
TOTAL EXPENDITURES 9 5,244 1,591 5,223 242
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 446 1,052 (1,272) (4,800) (181) -
OTHER FINANCING SOURCES(USES):
Operating Transfers In 18 1,860 1,048 2,393
Proceeds of Long-Term Debi 1,426
Operating Transfers Out (4,020) (1,444) (80) (483)
TOTAL OTHER FINANCING SOURCES(USES) (4,002) 1,842 968 1,910
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (3,556) 2,894 (304) (21890) (181)
FUND BALANCE,BEGINNING OF YEAR 6,295 17,645 4,311 3,162 144
RESIDUAL EQUITY TRANSFERS:
Residual Equity transfers In 811
FUND BALANCE-END OF YEAR $2,739 $20,539 $4,007 $272 $774
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Mello-Roos ReseMor Hill
F I
cepw Assessment Assessment
Improvement Fund Pier Rebuilding Fund District District Art Center Fund HollySeacliffe Tcul
$691
5
225 19 5 2,50D
200 200
612
155 125 343 4,746
128 580 19 125 348
8,754
161
5
4,017
154 385
381
t J is 2 16 43
1,956 los 186 205 9,959
1,956 los 201 2 154 221 14,951
(1,828) 472 (182) (2) (29) 127 (6,197)
IODD 82 (15) 6,834
1,426
(127? (6.134)
448 1,000 (25) (15) 2,126
(1.380) 1,472 (182) (2) (54) 112 (4,071)
2,232 1,463 375 2 35,629
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$852 $2,935 $193 ($54) $112 $32,369
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ENTERPRISE FUNDS account for operations similar to private
businesses. The City's intent is to recover the costs to the general
public through user charges or where the City wishes to periodically
determine net income.
The Water Utility Fund accounts for the City's water services.
The Meadowlark Golf Course Fund accounts for the opeations of the
Meadowlark Golf Course owned by the City and leased to a private
business.
9 The Emerald Cove Housing Fund accounts for the operations of a
senior-citizens apartment complex.
9 The Emergencyportion Fire Medical Fund acounts for the user-fee po ion of
the City's paramedic service.
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* The Refuse Collection Fund accounts for the City's. refuse collection
program.
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CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,1994
(IN THOUSANDS)
Meadowlark Golf Emeraid Cove Emergency Fire
ASSETS: Water Utility Course Housing Medical Refuse Collection TOW
Current Assets:
Cash and Investments $5,759 $2,385 $2,073 $10,217
Accounts Receivable 954 1,750 1,134 3,83R
Interest Receivable 43 55 61 15.r
Due from Other Funds 7,173 7,17:
Inventory 711 711
Unbilled Receivables 1,457 _ _ 1,457
Total Current Assets 16,097 2,440 2,134 .1,750 1,134 23 W.
Other Assets:
Cash With Fiscal Agent 464 464
Investment in Joint Venture 5 5
Advances to Other Funds 5,004 5,00.
Total Other Assets 5,009 464 5,47:
Plant,Property and Equipment:
Land 390 3,052 1,289 4,731
Buildings 2,709 155 4,102 6 g6Ci
Machinery and Equipment 53,691 3" 54,03,E
Construetion in Process 2,673 2,6-A
Subtotal 59,463 3,207 5,391 344 68,405
Less Accumulated Depreciation (28,146) (152) (739) (152) (29,18F�
Total Plant,Property and Equipment 31,317 3,055 4,652 192 39,21E
TOTALASSETS $52,423 $5,495 $7,250 $1,942 $1,134 $68,241
LIABILITIES AND FUND EQUITY
LIABILITIES:
Current Liabilities
Accounts Payable $1,819 $22 $70 $637 $2,548
Accrued Payroll 59 21 4 84
Accrued Interest 63 31 9,'
Deposits 2,322 23 2,346
Due to Other Funds 508 11 519
Current Portion of LorWTerm Debt 44 80 1124!
Total Current Liabilities 4,200 107 156 599 652 5,71i
Long-Tenn Liabilities:
Notes Payable 1,521 1,521
Certificates of Participation 5,555 5,55x
Compensated Absences 278 38 15 33i
Advances from Other Funds 244 241
Less Current Portion _ _ (44) (80) (12,
Total Long Term Liabilities 278 1,477 5,719 38 15 7,5F
TOTAL.LIABILITIES 4,478 1,584 5,875 637 667 13,24T
FUND EQUITY: s
Contributed Capital 38,235 1,267 1,288 311 41,101 E
Retained Earnings 9,710 2,644 87 994 467 13,
TOTAL FUND EQUITY 47,945 3,911 1,375 1,305 467 55,00
TOTAL LIABILITIES AND FUND EQUITY $52,423 $5,495 $7,250 $1,942 $1,134 $68,241,
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CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS(ACCUMULATED DEFICIT)
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
- Meadowlark Golf Emerald Cove Emergency Fire
OPERATING REVENUES: Water Vtllity Course Housing Medical Refuse Collection Total
Sales $20,463 $20,463
Rentals 240 746 986
Fees for Service 2,844 9,062 11,Im
Other 520 520
- TOTAL OPERATING REVENUES 20,983 240 745 2,844 9,062 33,875
OPERATING EXPENSES:
T Water Purchases 4,111 4,111
Administration and Contract Services 4,109 336 2,606 8,713 15,764
Engineering 419 419
Production 6,&35 6,835
Maintenance 1,386 1,386
Water Meters 1,110 1,110
Water Quality 455 455
In-Lieu Taxes to General Fund 2,908 2,908
Depreciation 1,249 82 51 1,382
TOTAL OPERATING EXPENSES 22,582 418 2,657 8,713 34,370
OPERATING INCOME(LOSS) (1,599) 240 328 187 349 (495)
NON-OPERATING REVENUES(EXPENSES):
Interest Income 1,825 247 266 2,338
Joint Venture Income 152 152
Interest Expense - (137) (614) -..
TOTAL NON-OPERATING REVENUES(EXPENSES) 1,977 110 (211) 1,876
NET INCOME BEFORE OPERATING TRANSFERS 378 350 117 187 349 1,381
1 OPERATING TRANSFERS:
Operating Transfers in 80 80
Operating Transfers Out (642)_ (2266) ___(25) (247 _ (313) (1,253)
TOTAL OPERATING TRANSFERS (642) (26) 55 (247) (313) (1,173)
NET INCOME(LOSS) (264) 324 172
(6D) 36 208
RETAINED EARNINGS(ACCUMULATED DEFICITS)-
BEGINNING OF YEAR 9,974 2,320 (85) 1,054 431 13,694
RETAINED EARNINGS,END OF YEAR $9,710 $2,644 $67 $994 $467 $13,902
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CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
Meadowlark Goff Emerald Cove Emergency Fire
CASH FLOWS FROM OPERATING ACTIVITIES water Utility Course Housing Medical ReNse Collection Total
OPERATING INCOME(LOSS) ($1,599) $240 $328 $187 $349 ($49
Adjustments Required to Reconcile Operating Income(Loss)
to Net Cash Provided (Used)by Operating Activities:
Depreciation 1,249 82 51 1,38:
Decrease(Increase)in Accounts Receivable (164) 1 (244) (750) (1,15'
Decrease(Increase)in Interest Receivable (43) (55) (61) 055
Decrease(increase)in Unbilled Receivable (241) 413 172
Decrease(Increase)in Advance to Other Funds (281) (28'
Decrease(increase In Due from Otter Funds (7,173)
Decrease(increase)in Inventory (102) 0 M.
Increase(Decrease)in Accounts Payable 1,554 22 37 142 1,755
Increase(Decrease)in Accrued Payroll (39) (15) 3 (5'
Increase(Decrease)in Interest Payable 26 (97) (7
Increase(Decrease)in Amount Due to Other Funds 218 11 22L
Increase(Decrease)in Deposits 370 (2) 368
Increase(Decrease)in Compensated Absences 67 13 15 96
TOTAL ADJUSTMENTS (4,803) (28) (56) 60 (166) (4,W
NET CASH PROVIDED(USED) BY OPERATING
ACT1VMES (6,402) 212 272 247 163 (5,488
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES:
Operating Transfers In From Other Funds 80 86
Operating Transfers Out to Otter Funds (642) (26) (26) (247) (313) (1,2w
Residual Equity Transfers Out r
TOTAL CASH FLOWS PROVIDED(USED)FROM NON-
CAPITAL FINANCING ACTIVITIES (642) (26) 55 (247) (313) (1,1T
CASH FLOWS FROM CAPITAL.AND RELATED
FINANCING ACTIVITIES r `:
Interest Paid (137) (477) (614
Acquisition and Construction of Capital Assets (3,435) (3,434
Proceeds of Sale of Plant,Property and Equipment 405 405
Principal Paid on Long-Term Debt (40) (1_55) (19
TOTAL CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (3,030) (177) (632) pxld
CASH FLOWS FROM INVESTING ACTIVITY
Interest on Investments 1,825 247 266 2,33P
NET INCREASE(DECREASE)IN CASH AND CASH '
EQUIVALENTS (8,249) 256 (39) (130) (8,16d
CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 44,008 2,129 2,576 130 16,84{ i
CASH AND CASH EQUIVALENTS END OF YEAR $5,759 $2,385 $2,537 $10,68 s
i s
NON-CASH ACTiVMES:
Plant,Property,and Equipment Contributions $246 $2
Joint Ventura:Activity $5
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INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,1994
(IN THOUSANDS)
Equipment
ASSETS: Seff-Insurance Replacement TOW
Current Assets
Cash and Investments $1,755 $6,183 $7,938
Prepaid Insurance 662 662
Due from Other Funds 1,604 1,604
Other Receivables as 153 242
Total Current Assets 4,110 $6,336 10,446
Other Assets:
Cash With Fiscal Agent 5 5
Investment in Joint Venture 514 514
Total Other Assets 514 5 519
Plant,Property and Equipment
Machinery and Equipment 32,763 32,763
Less Accumulated Depreciation (20,195) (20,195)
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Total Plant,Property and Equipment 12,568 12,568
TOTAL ASSETS $4,624 $18.909 $23,533
LIABILITIES AND FUND EQUITY
LIABILITIES
L -3 Current Liabilities
Accounts Payable $45 $27 $72
Accrued Payroll 6 6
Due to Other Funds 87 87
Accrued Interest 27 27
Current Portion of Long-Tenn Debt 1,367 1,367
Total Current Liabilities 138 1,421 1,559
Long-Term Liabilities
Certificates of Participation 2,425 2,425
Leases Payable 627 627
Workers Compensation Claims 5,070 5,070
rl
Health Claims 119 119
General Liability Claims 5,671 5,671
Compensated Absences 25 25
Less Current Portion (1,367)... (1,367)
I Total Long-Term Liabilities 10,885 1,685 12,570
TOTAL LIABILITIES 11,023 3,106 14,129
FUND EQUITY
Contributed Capital 18,026 18,026
Accumulated Deficit (6,3%) (2,223) (8.622)
TOTAL FUND EQUITY (6,399) 15,803 9,404
TOTAL LIABILITIES AND FUND EQUITY $4,624 $18,909 $23,533
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INTERNAL SERVICE FUNDS account for goods and services
provided by one City department to another on a cost-reimbursement
basis.
• The Self-insurance Fund accounts for the Cito self-insurance
activities (liability, health and workers compensation).
• The Equipment Replacement Fund accounts for the purchase,
operation and replacement of vehicles and equipment leased to City
departments.
CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANCES IN ACCUMULATED DEFICITS
FOR THE FIFTEEN MONTHS ENDING SEPTEM13ER 30,1994
(IN THOUSANDS)
Equipment
OPERATING REVENUES Seff-tnsurance Replacement Total
Fees for Service $9,787 $2,065 $11,852
Other 307 307
TOTAL OPERATING REVENUES 10,094 2,065 12,159
OPERATING EXPENSES
Administration 4,086 300 4,386
Employee Medical Claims 4,372 4,372
Liability Claims 2,270 2,270
Wwlwm compensation Claims 3,309 3,309
Depreciation 2,668 2.668
TOTAL OPERATING EXPENSES 14,037 2.968 17,005
OPERATING LOSS (3,943) (903) (4,846)
NON-OPERATING REVENUES: -
Interest Income 524 704 1,228
Interest Expense (401) (401)
Joint Venture Income(Loss) 518 518
TOTAL NON-OPERATING REVENUES 1,042 303 1,345
NET LOSS BEFORE OPERATING TRANSFERS (2.901) (600) (3,501)
Operating Transfers In 158 158
Operating Transfers Out (51)
HET LOSS (2,901) (493) (3.394)
ACCUMULATED DEFICIT,BEGINNING OF YEAR (3,498) (1,730) (5,228)
ACCUMULATED DEFICIT, END OF YEAR ($6,399) ($2.223) ($8.622)
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CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1954
(IN THOUSANDS)
Equipment
Self-insurance Replacement Tow
CASH FLOWS FROM OPERATING ACTIVITIES
OPERATING LOSS ($3,943) ($903) ($4,846)
ADJUSTMENTS TO RECONCILE OPERATING LOSS TO
NET CASH PROVIDED(USED)BY OPERATING
ACTIVITIES:
Depreciation 2,668 2,668
Decrease(Increase)in Prepaid Insurance (662) (662)
Decrease(increase)in Amounts Due from Other Funds 3,211 3,211
Decrease(increase)in Other Receivables (81) (153) (234)
Increase(Decrease)in Accounts Payable (79) 20 (59)
Increase(Decrease)in Due to Other Funds 87 87
Increase(Decrease)In Claims Payable (3,26D) (3,260)
Increase(Decrease)in Leases Payable (273) (273)
Increase(Decrease)in Accrued Payroll (4) (4)
Increase(Decrease)in Accrued Interest (74� (74)
TOTAL ADJUSTMENTS (788) 2,18E 1,400
TOTAL CASH FLOWS PROVIDED(USED)FROM
OPERATING ACTIVITIES (4,731) 1,285 (3,446)
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating Transfers In From Other Funds 158 158
Operating Transfers Out to Other Funds _ (51) (51)
TOTAL CASH FLOWS PROVIDED(USED)FROM NOW
CAPITAL FINANCING ACTIVITIES 107 107
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from Sale of Assets 948 948
Acquisition and Construction of Capital Assets (2,215) (2,215)
Principal Paid on song-Term Debt (1,1s (1,100)
TOTAL CASH USED IN CAPITAL AND RELATED
FINANCING ACTIVITIES (2,367) (2,367)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest out Investments 524 704 1,228
TOTAL CASH FLOWS PROVIDED FROM INVESTING
ACTMTY 524 704 1,228
NET INCREASE(DECREASE)IN CASH AND CASH -
EQUIVALENTS (4,207) (271) (4,478)
CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 5,962 6,459 12,421
CASH AND CASH EQUIVALENTS,END OF YEAR $1,755 $6'1w $7,943
NON-CASH ACTIVITIES:
Equipment Contributions $1 245 $1,245
Joint-Venture Activity $518 $518
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TRUST AND AGENCY FUNDS account for assets held by the
City as an agent for individuls, private organizations or other
governments.
Agency Funds:
• The Employee Deferred Compensation Fund accounts for monies held
for employees under the City's section 457 deferred compensation plan.
• The General Deposit Fund accounts for the deposit of general monies
held by the City for private individuals and businesses.
• The Mello-Roos Assessment District Fund accounts for the debt service
requirements of the Mello-Roos Assessment District bonds.
• The Retiree Medical Insurance Fund accounts for the City's medical
retirement program.
The Business Improvement District accounts for the activities of the
Huntington Beach Auto Business Improvement District.
The Central Net Fund accounts for the activity of the Central Net
Operations Authority.
Trust Fund:
The Retirement SuRplement Fund accounts for the supplemental
retirement plan provided to retirees.
CITY OF HUNTINGTON BEACH
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMSER 30,1994
(IN THOUSANDS)
ASSETS Agency Funds Pension Trust Fund Total p�p
Cash and Investrnents $5,057 - $5,057
Cash With Fiscal Agent 29,172 29,172
Due from Other Funds 87 87 f_}
Notes Receivable,Net of Allowance for Doubtful Accounts 1,141 1,141
Other Assets 344 3" '
TOTAL ASSETS $35.801 $35,801
s�
LIABILITIES t
Deposits Payable $1,981 $1,981 4.
Notes Payable 23 114 123
Due to Other Funds
Funds Held for Others 3,931 3,931
Deferred Compensation Payable 29,866 29,866
TOTAL LIABILITIES 35,601 114 35,915
FUND BALANCES }
Reserved for Pension Payments (114) (114)
TOTAL LIABILITIES AND FUND BALANCES $35,801 $35,801
� S
CITY OF HUNTINGTON BEACH
TOTAL AGENCY FUNDS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994 `:
(IN THOUSANDS)
July 1, September30, I
ASSETS: 1993 Additions Deductions 1994
Cash and investments $4,152 $4,536 ($3,631) $5,057
Cash With Fiscal Agent 23,404 6,163 (30) 29,172 j
Notes Receivable,Net of Allowance for Doubtful Accounts 1,472 (331) 1,141
Due From Other Funds 87 87
Other Assets 49 1,418 (1,123) 3"
TOTAL ASSETS $29,077 $12,204 ($5,480) $35,601
+ t
LIABILITIES J
Deposits Payable 1,403 4,553 (3,975) 1,981
Notes Payable 24 (1) 23 ?
Funds Held for Others 3,241 u77 (387) 3,931
Deferred Compensation Payable 24,409 6,141 (684) 29,866
TOTAL LIABILITIES $29,077 $11,771 ($5,047) $35,801
96
CITY OF HUNTINGTON BEACH
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
EMPLOYEE DEFERRED COMPENSATION
September 30,
ASSETS: July 1,19M Additions Deductions 1994
Cash and Investments $87 $654 ($675) $66
Cash With Fiscal Agent 22,845 5,920 (112) 28,653
Notes Receivable,Net of Allowance for Doubtful Accounts 1,472 (331) 1,141
Other Assets 29 29
TOTAL ASSETS $24,433 $6,574 ($1,118) $29,889
LIABILITIES
Notes Payable 24 (1) 23
Deferred Compensation Payable 24,409 _ 6,141 (684) 29,866
TOTAL LIABILITIES $24,433 $6,141 ($685) $29,889
GENERAL DEPOSIT FUND
September30,
ASSETS: July 1,1993 Additions Deductions 1994
Cash and Investments 10 5 ($124) 1
LIABILITIES
Deposits Payable $410 $365 ($124) $651
i.e. —
a
MELLO-ROOS ASSESSMENT DISTRICT
t
September 3D,
ASSETS: July 1,19M Additions Deductions 1994
Cash and Investments $49 $257 ($291) $15
Cash With Fiscal Agent 559 243 (283) 519
Other Assets 5 (5
TOTAL ASSETS bzg) 5
LIABILITIES
Deposit Payable $613 $500 ($579) $534
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CITY OF HUNTINGTON BEACH
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(CONTINUED)
(IN THOUSANDS)
RETIREE MEDICAL INSURANCE
September30,
ASSETS: July 1,t993 Additions Deductions 1994
Cash and Investments $3,241 $987 ($387) $3,841
Due from Other Funds 87 87
Other Assets 3 3.
TOTAL ASSETS $3,241 $1,077 ($387) $3,931
I tAB LRIES
Funds Held for Others $3,241 $1,077 ($387) $3,931
BUSINESS IMPROVEMENT DISTRICT
September 30,
ASSETS: July 1,1993 Additions Deductions 1994
Cash and Investments $74 $92 ($153) $13
Other Assets 15 15
TOTAL ASSETS $74 $107 ($153) $28
LIABILITIES
Deposits Payable $74 $107 ($153) $28 -
CENTRAL NET
SepterriberJU.
ASSETS: July 1,1993 Additions Deductions 1994
Cash and Investments $291 $2,181 .($2,001) $471
Other Assets 15 1,400 1,118 297
TOTAL ASSETS $306 $3,581 ($3,119) $768
LIABILITIES
Deposits Payable $306 $3 581 $3119 $768
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CITY OF HUNTINGTON BEACH
RETIREMENT SUPPLEMENT TRUST FUND
BALANCE SHEET
SEPTEMBER 30,1994
(IN THOUSANDS)
s
ASSETS TOTAL
Cash and Investments -
LIABILITIES AND FUND BALANCES
Due to Other Funds 114
Fund Balance Reserved for Pension Payments (5114)
Total Liabilities and Fund Balances -
STATEMENT OF REVENUE,EXPENSE AND CHANGE IN FUND BALANCE
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
REVENUES TOTAL
City Contributions $240
Interest 53
TOTAL REVENUES 293
EXPENSE
Pension Payments and Administration 482
EXCESS OF REVENUE OVER(UNDER)EXPENSE (189)
FUND BALANCE,BEGINNING OF YEAR 75
FUND BALANCE,END OF YEAR ($114) _
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THIS PAGE LEFT BLANK INTENTIONALLY
i
The GENERAL FIXED ASSETS ACCOUNT GROUP
records plant, property and equipment not recorded in proprietary
funds.
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CITY OF HUNTINGTON BEACH
SCHEDULE OF GENERAL FIXED ASSETS
SEPTEMBER 30.1994
(IN THOUSANDS)
GENERAL FIXED ASSETS
Land $66,430
Buildings 59,310
Joint Ventures 757
Improvements Other Than Buildings 2,007
Construction in Process 3,747
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $132,251
INVESTMENTS IN GENERAL FIXED ASSETS FROM:
General Fund $9,017
Special Revenue Funds 22,123
Capital Projects Funds 79,096
Joint Ventures 757
Donations 21,258
TOTAL INVESTMENTS IN GENERAL.FIXED ASSETS $132,251
SCHEDULE OF CHANGES IN GENERAL.FIXED ASSETS BY FUNCTION AND ACTIVITY
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
September 30,
July 1,1993 Addtfions Dek&ns 1994
Fire U554 $315 ($815) $3,054
Police 620 157 (112) 665 _
Community Services 81,712 1,473 (1,533) 81,652
Public Works 2,973 381 3,354
Library Services 8,438 13,898 (9,090) 13,246
Non-Departmental 29,200 1,100 (20) 30,280
TOTAL $126,497 $17,324 ($11,570) $132,251
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
SEPTEMBER 30,1994
(IN THOUSANDS)
Construction in
Land Buildings improvemems Process Joint Venture Tatat
Fire $2,820 234 $3,05g
Police 607 58 661
Community Services 47,138 30,028 1,949 2,537 81,65
Public Works 2,726 628 3,35a
Library 13,213 33 13,24E
Non-Departmental 19,292 9,916 549 523 30,28`
TOTAL $66,430 $59,310 $2,007 $3,747 $757 $132.25
100
The GENERAL LONG-TERM DEBT ACCOUNT
GROUP accounts for long-term debt not recorded in proprietary or
trust funds.
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CITY OF HUNTINGTON BEACH
SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT
FOR THE FIFTEEN MONTHS ENDING SEPTEMBER 30,1994
(IN THOUSANDS)
September 30,
July 1,1993 Additions Retirements 1994
1970 Park Bonds $8W ($415) $445
Public Facilities Corporation Leasehold Mortgage Bonds 1,710 (625) 1,085
Parldng Authority Revenue Bonds 115 (115)
Civic Improvement Corporation Refunding Certificates of 21,895 (930) 20,965
Participation(Civic Center)-1993
Civic Improvement Corporation Refunding Certificates of 16,350
Participation(Police Administration Building)-1993 (645} 15,705
Compensated Absences 5,317 957 (1,252) 5,032
Advances from Other Funds 114,573 8,290 (3,615) 119,248
1992 Public Financing Authority Revenue Bonds 33,495 (780) 32,715
Notes Payable 993 (282) 711
Leases Payable 148 (30) 118
Reservoir Hill Assessment Bonds 1,395 (90) 1,305
Arbitrage Rebates 88 (88)
$196.791 $9,405 ($8,867) $197,329
101
STATISTICAL SECTION
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CITY OF HUNTINGTON BEACH
GOVERNMENTAL FUND EXPENDITURES BY FUNCTION AND ACTIVITY
LAST TEN FISCAL YEARS
Economic and
COY Administrative Community Community
City Council Administrahx City Treasurer City Attorney City Clerk Services Development Fire Police Services
1984.85 $129 $731 $268 $806 $195 42,559 $2,726 $9,494 $17,123 $S,287
1985.86 135 848 288 897 203 2.949 2,716 10,252 18,745 5,668
198W 129 959 283 913 252 3.088 3.248 11.187 20,519 6,090
1997.ae 130 1,1D6 29D 9T3 245 3,287 4.187 11,840 22.370 6,954
19884M 156 1,304 322 1,042 293 3,409 4.393 12.722 23.50 7,595
1989.90 215 853 438 1,308 330 3,835 5.404 14,148 26.369 8.307
loom 197 1,564 700 1.340 457 4.187 5,306 14.169 28,146 9.127
1991.92 297 1,569 727 1,563 402 4,042 6,628 13.173 30,417 9,420
992 1 .93 213 1,45D 709 1.807 449 4,108 6.097 16,505 32.355 7,226
•199394 282 2,691 897 2,168 517 5.140 10.406 19,502 40.535 9,892
GOVERNMENTAL FUND REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(IN THOUSANDS)
Ucemes and Fines and Use d Monty From Other Charges for
Fiscat Your PropertyTaz OlherTWI; Pemvits Forfeitures and Property Agencies Cutt_entservice Other Tow
1984-35 317,635 325,923 $5.963 $2.094 3506 31208 $2,161 $364 $72,927
1985-M 19.428 27,798 4,427 1,974 5.718 14,143 2.350 736 76,574
19aU7 23.087 28,05 4.919 2.096 7.634 14.422 2,799 456 64,298
1987-M 24,275 30,207 4,348 2,338 km 15,492 3,268 1,41D 89,643
1988.E9 26.970 30,736 5,773 2.458 13,884 21.721 5,886 2,731 110,159
1959-W 30,450 32,679 3,944 2.256 14,140 15.211 7,267 1.019 106,976
1990411 33,697 32,092 3,629 1,904 11,654 77243 8,341 2.012 120.772
1991-92 35,376 35.069 4.236 1,324 19,451 21,850 4,699 3,192 125.197
1992.93 33.163 35,332 4,846 1.354 11,382 19,334 6,453 2.493 115,357
'199394 32.545 46,194 6,579 1,894 17.303 25,894 9,628 6.221 146,158
PROPERTY TAX LEV n AND COLLECTIONS
LAST TEN FISCAL YEARS
ON THOUSANDS)
SECURED TAXES UNSECURED TAXES
TOTAL DELAtOUENCY DEUNOUENCY TOTAL DEUNOUENCY DELINOUENCY _
TOTAL LEW COLLECTIONS AMOUNT PERCENT TOTAL LEVY COLLECTIONS AMOUNT PERCENT
1954-85 $12.418 $11.634 $425 3.42% $1.032 $955 $33 3.20%
1985-M 13,608 12.781 452 3.32% 1,130 1,060 40 3.54%
1986.E7 15,089 14,448 572 3.79% 1.187 1,100 45 3.79%
1987-M 16,055 15,419 50D 3.11% 1,250 1,180 46 3.65%
1a88-a9 16,M 16,346 493 2.91% 1,287 1.234 37 2.87%
19W90 17,283 16.654 5D0 2.89% 1,524 1,421 71 4.66%
1990-91 18,764 17,827 747 3,98% 1,509 1,377 62 4.11%
19914n 20,171 18,948 899 4.46% 1,646 1,525 63 3.53%
1992-93 19,06D 17.547 853 4,48% 1.542 1.205 130 8.43%
199394 16.612 15.632 572 3.44% 1.205 1.106 56 4.65%
RESERVIOR HILL MELLO-ROOS
1989AD $214 $211 $3 1,40%
1090.91 168 163 4 2.38%
1991.92 170 167 3 1.76% 264 236 27 10.23%
1992-93 181 187 3 1.57% 264 245 19 7.20%
•1993.94 180 175 4 2.22% 264 181 83 31.44%
' Fis=1 Year 1993-94 is a fife aen month fiscal your.
Source:County of Orange Auditor Controllers Ofte
Page 102
CITY OF HUNTINGTON BEACH
ASSESSED AND ACTUAL VALUATION OF ALL TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Total Eatimated Full
Carnmon Assessed Market Percent
Property Public Utiftes Total Secured Unsecured Valuation Valuation increase
1989.64 $5.559.702 t362,186 $5,921,978 5370,949 56,292,927 $6,29$927
1984435 5,94D.642 420,593 6.397.235 466,571 6,633,606 6,833,806 &SD%
1965416 6,519,923 450,742 6.970,665 441,125 7,411,790 7,411,79D 8.48%
198"7 7.019.654 475.467 7.495.321 504.940 8.000,281 8,OD0,251 7.94%
1987-M 7,457,814 487,793 7,945.407 436,5D2 8,351,909 6,381.9D9 4.77%
195548O 8,116,79D 3,317 8,12D,107 4W.095 8,560,202 8,580,202 137%
19sw 9,030.107 3.298 0.033.405 717,652 0.751.057 9.751.057 1315%
709091 9.979,107 3.324 9.962,431 536,647 10.519.270 10,519,278 7.88%
1991.92 10.04,970 10,011 10,649,961 678,150 11.326,131 11,326,131 7.09%
1902.93 11,125,355 Z311 11,127,687 756,178 11.685.845 11,085,845 4.M
1903-94 11,313.255 1.964 11,315,22D 580,685 11,876.855 11.875,655 -0.00%
PROPERTY TAX RATES-ALL DIRECT AND OVERLAPPING GOVERNMENTS
TAX RATE AREA OW-M(LARGEST AREA IN CITY)
schw Metro Water
Year Basic Levy Ora Counh Diabieta Disbict Otters Total
1964.85 1.00000 0.05630 0.000d2 0.00982 0.01560 O.OD177 1.17301
1985.86 1.00000 0. 0.00030 0.09329 0.01640 a.00 m 1.16725
19a8.87 1.00000 0.05520 0.0=1 0.10677 0.0146D 0.00142 1.17L%
198740 1.DOp00 0.05490 0.00027 0.09514 0"01120 0.00636 1.10740
198&w 1.00000 0.05470 0.00072 0.09470 0.01100 0.003Y1 1.16983
1969-90 1.aoo0D 0.05419 0.00072 0.01004 0.01210 0.00029 1.07684
199W 1.Oo000 0.05" O.OD11O OA0641 0.0D970 0.00D75 1.07342
1991-02 1.000DO 0.0sm 0.00098 0.00452 0.00890 0,00D12 1.06621
19924i3 1.00000 0.03325 0.00097 0.002m 0ADW 0.00013 1.00516
190344 1.00000 0.05320D 0"00D81 0.00227 O.00690 0.00019 1.06597
Norte-Rates are per$100 of assessed valuation
Source-County of oralfye
GENERAL OBLIGATION BONDED DEBT RATIOS
LAST TEN FISCAL YEARS
Percara of Debt Service to
General Debt1D General Fund Total General
Bonded Debt Assessed Market Asaewwd Bonded Debt Principal Total Debt Expenditures Fund
( 7 mms) Value Population Percopits MDDs) Interest{pops) Service {pops) TW) Expendtures
19a384 53,695 56,292.927 0.050 179.990 32Q53 5235 s238 $471 553,177 0.89%
19B44t5 $3,425 s8,633,sm 0.050 161.0DO s18.92 5270 $222 5422 $59,094 DAM
1985a6 $3.165 57,411,790 0.043 184.838 517,12 5280 5208 5466 $64.492 0.72%
1988.87 52.685 56,DD0,261 ame 156,757 $15.45 5260 $191 $471 $67.126 0.70%
198748 $2,590 s8381,em 0.031 187,740 WAD $205 $175 $470 $71,232 0.66%
1986-69 SZ280 Sa,58D,202 0.027 188.701 S12A6 $310 $155 5485 $75,593 0.62%
18am $1,975 s9,751,057 D.020 188.701 $10.47 5305 %in 5444 383,616 0.53%
1990.91 $1,625 $10.519.278 0.015 181.155 $&97 $350 Silo $468 588,079 0.53%
1991.92 $1.255 $11,328,131 0.011 182,353 58.88 $370 $98 5468 591,457 0,51%
199243 5660 511,885,845 0.007 186,867 S4.6D sus $75 $470 $91,650 0.51%
192344 $445 511,875.685 0.OD4 189,159 $135 sms S52 $467 5115.757 0.40%
Swrr -Adminstl8tiveSWAC0S Departrnartt.City of Huntinglon Swch
Page 104
Ubmfy Mon.
Swywm Pubic Works Depattrnntal Capdal Outimy Debt Sevice Toial
$13.652 $4,867 37.874 $1,&% $67,607
15.249 6,796 11,791 1,547 78,383
14,863 7,726 12,168 2,159 83.614
16= 7,153 10,2D6 6,243 90,189
16.893 7,088 42,462 15.177 138,421
18,428 7,955 20.622 10,626 118.838
20,275 7,D52 24.076 11,895 128.493
1509 11,255 39.069 48,643 183,094
2,775 16,633 21.458 17,328 9,397 138,572
3.513 20,802 10.787 22,228 18,699 168,059
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CITY OF HUNTINGTON BEACH
DEMOGRAPHIC STATISTICS
city Populaom
u�Pr,rwn!d
Cronso Cr+mY C-MY
Year Popuftm Percent kKrwm Square u4s PowAftn Pow"M
1910 als 3.57 34,436
1920 1,667 107.0% 3.57 61.375 2.75%
1930 300 116.79A 3.51 62.451 5.9t%
1040 3.735 "'PA 3.57 130.76D 2.66%
195D 5.155 35.0% 4.72 216,224 2.39%
low 11.492 1222% 23.47 703.905 . 1.63%
IBM 116.400 0122% 26.73 1.420,366 6.19%
1980 172,20D 4LVA 2720 1.931.5M a.92%
1990 166.701 9.6% 27M 2,382,211 7.90%
101 181.155 4.0% 2720 2,453,2T7 7.36%
i992 162= 0.7% 27.20 2AIZ198 72M
1993 1a6.a67 2.5% 27.2D 2=.346 7.3t%
1994 109.159 12% 2720 2.696,5t1 7.29%
Sourer Aftirdoatiw Services Oapsrtment.City of HurdirOW Beach
TOP TEN SECURED PROPERTY OWNERS
AssessedWMwen PMM*dTgel
Meow Dwpbe Corpmseon S259.369.9W 2.16%
Shea 1Neeenn E i P trre. 69.045.130 0.56%
1..rdrrot.r B..dr rarrs.r7 53.179.234 OAS%
WowiehCeWrrreAuotiree 51.965.617 0.44%
RwhwdB@UgkThat 44.602.484 036%
ads mewCrpweerr 29,500.000 025% -
Liu Capin coon 22.950.000 0.19%
Brae*Preprres 20.750.00D 0.17%
ikr-Won 8rwtrs Apnrbarb Ud. 17,939.371 0.15%
Hugo pier Cokmy 17.096,M 0.14%
TOW SM.596.450 4.94%
SMC♦HOL Cash,Can
MISCELLANEOUS STATISTICS
SEPTEMBER 30,19"
Year d rnorpareeon low
Form Or Gorernmate Charter City-Cky Cotax i-City Atlmulistreta
Area 272 Square Males
Popwabon 189,t59
Mika of Streets 370
Number Or Street Lim 14,350
Fie PrOrntiac
Number of stations 7
Number CO F.efgrr m 142
i
Pak*Probcb xL
Number Of 9tsion 4
Nurnber of Sworn Police ptfivers 239
MuNeipst WoM Depsrtmeft
Number d Cuehmnre 46,00D
Av-0 Ds*f Cauum wen 35.0 M uwn Gatiorn
Miles d Waw Mane 490
Pubke Vhd*
Senbry s.rrers 340 miles
slrm 5e.rera 31 miles -
Raerewan No C ftw:
Number of PIN 57
pork Avow Dns1.; 555
Mills d 9eaah 3A _
Arrest Bosch viaaors 7,000.000
Number of tibrorm 4
volumes in Low" 353.571 .
Fun-Trm.Enrplor 1.039 Pape 106
Souro►Administrative Ser as Deportmed,City d Huntington Beach
CITY OF HUNTINGTON BEACH
CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSITS
LAST TEN FISCALYEARS
Estimated Value Banks and
Number of of New Savings and
Building Percent Construction Percent Loan Deposits
Permits Change (0005) Change (ODDS) Percent Change
1984-85 6,496 142,336 1,843,295
t98586 3,173 (51.15) 133,579 (6.15) 2,052,766 11.36
IN"7 4,098 29.15 92,230 (30.95) 2,138A24 4.18
1997-86 4,666 13.86 177,297 92-23 2,395,503 12.01
t9ea 89 5,039 7.99 272.013 53.42 2,653,166 10.76
1989 90 4,318 (14.31) 102,9(7 (62.M 2,598.415 (2.06)
19go 9t 4,650 7.69 76,175 (25.98) 2.803,740 7.90
1991-92 5,041 8.41 81,250 6.66 2,458,259 (12.32)
1992-0 10,40D 106.31 10Q400 23.57 2.0590A (16.21)
19934114 6,844 (34.19) 107,420 6.99
Source-Community Development Department,City of Huntington Beach and the Findley
Reports on California Institutions
COMPUTATION OF LEGAL DEBT MARGIN
September 30,1994
(IN THOUSANDS)
{ s ASSESSED
VALUATION 511,875,885
l _
DEBT LIMIT,12%OF ASSESSED VALUATION 1.425,106
4
DEBT APPLICABLE TO LIMMATION:
j 1970 PARK BONDS 445
LESS ASSETS IN t970 PARK BOND DEBT SERVICE FUND (646} -
TOTAL DEBT APPLICABLE TO LIMTATION (201)
t LEGAL DEBT MARGIN $1.425,307
F
Source-Administrative Services Department,City of Huntington Beach
STATEMENT OF DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30,1994
%Apptieable Debt &WM4
Orange County(O.C.) 7.44% $55.373
O.C. Building Authorities 7.44% 22.195,140
O.C.Transit Authority 7.44% 1,568,996
O.C.Flood Control District 7.44% 162,805
Metropolitan Water District(MWD) 7.43% 9,573.745
$ I MWD of O.C.Water Facilities Corporation 11.38% 9,973.339
O.C.Sanitation Dist 23 COPs 11.58% 15.352,826
i O.C.Sanitation Dist#11 COPs 99.86% 26,609,225
O.C.Water District COPS 11.62% 24,215,575
Coast Community College District Authority 30.20% 4,714.690
Htg.Bch.Union H.S.Dist.COPS 70.92% 868,926
i Fountain Valley School District 28.48% 667.926
Huntington Beach City School District 95.59% 71,689
City of Huntington Beach 95.59% 445,000
! City of Huntington Beach Building Authorities 100.00% 49,833,762
i ,
L City of Htg Bch Community Facilities District 100.00% 2,350,000
City of Htg.Bch.1915 Act Bonds 100.00% 1.350,000
TOTAL GROSS DIRECT AND OVERLAPPING 170,042,317
BONDED DEBT
Less 100%Setf-Supporting (35,444.411)
TOTAL NET DIRECT AND OVERLAPPING $134,597,906
t ? BONDED DEBT
1.)Excludes tax and revenue anticipation notes,mortgage revenue bonds
and non-bonded capital lease obligations
i Ratios to Assessed Valuation
Direct Debt 0,42%
1 Total Gross Debt 1.43%
Total Net Debt 1.13%
State School Building Aid Repayable at 6130l94$13,394,410
1993t94 Assessed Valuation$11,875,8W.395 after deducting$424,341,879 of
redevelopment incremental valuation
Source California Municipal Statistics Page 105