HomeMy WebLinkAbout1994/1995 Comprehensive Annual Financial Report - CAFR - wit vh
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COMPREHENSIVE ANNUAL FINANCIAL
F REPORT
CITY OF HUNTINGTON BEACH,
CALIFORNIA
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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PREPARED BY ADMINISTRATIVE SERVICES
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DEPARTMENT
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDING SEPTEMBER 30, 1996
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal M-xi
Principal City Officials xii
Organizational Chart AH
Financial Reporting Certificate xiv
FINANCIAL SECTION
Inde endent Auditors' Report 1
General Purpose Financial Statements
Combined Balance Sheet-All Fund j1pes and Account Groups 2-3
Combined Statement of Revenues, Expenditures and Changes in Fund Balances-All 4
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
Pro rietary Fund Types and Similar Trust Funds
Combined Statement of Cash Flows-All Proprietary Fund Types 8
Notes to General Purpose Financial Statements 9-61
Combining Financial Statements and Schedules of Individual Funds and
Account Groups
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General Fund:
Balance Sheet 62
Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and 63
Actual
Y S ecial Revenue Funds:
Combining Balance Sheet 64-65
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 66-67
Deficits Budget and Actual
Combining Statements of Revenues. Expenditures and Changes in Fund Balances 68-74
s (Deficits)--Budget and Actual
Debt Service Funds:
Combining Balance Sheet 75-76
{ Combining Statements of Revenues, Expenditures and Changes in Fund Balances 77-78
Budget and Actual
Combining Statements of Revenues, Expenditures and Changes in Fund Balances- 79-82
Budget and Actual
Capital Projects Funds:
Combining Balance Sheet 83-84
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 85-86
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EnteIRrise Funds:
Combining Balance Sheet 87
Combining Statement of Revenue, Expenses, and Changes in Retained Eamings 88
Accumulated Deficit
Combining Statement of Cash Flows 89
Intemal Service Funds:
Combining Balance Sheet 90
Combining Statements of Revenues, Expenditures and Changes in Fund Balances 91
Bud et and Actual
Combining Statement of Cash Flows 92
Trust and Agency AgenEy Funds:
Combining Balance Sheet 93
Combning Statement of Changes in Assets and Liabilities 94-95
Trust Fund:
Balance Sheet 96
Statement of Revenue Expense and Change in Fund Balance 96
General Fixed Asset Account Group:
Schedule of General Fixed Assets 97
Schedule of Changes in General Fixed Assets !?y Function and Activity 97
Schedule of General Fixed Assets by Function and Activity 97
General Long-Term Debt Account Group
Schedule of Changes in General Long-,Term Debt 98
STATISTICAL SECTION
Govemmental Fund Revenues by Source- Last Ten Fiscal Years 99-100
Govemmental Fund Expenditures by Source-Last Ten Fiscal Years 99-100
Property Tax Collections- Last Ten Fiscal Years 99-100
Assessed and Actual Valuations of Property- Last Ten Fiscal Years 101
Property Tax Rates-All Direct and Overlapping Govemments 101
General Obligation Bonded Debt Ratios- Last Ten Fiscal Years 101
Construction Activity and Bank and Savings and Loan Activity- Last Ten Fiscal Years 102
Computation of Legal Debt Margin 102
Statement of Direct and Overlapping Bonded Debt 102
Demographic Statistics 103
Top Ten Secured Property Owners 103
Miscallaneous Statistics 103
CITY OF HUNTINGTON BEACH
CALIFORNIA 2000 MAIN STREET 92648
ADMINISTRATIVE SERVICES
February 15, 1996
The Honorable Mayor and City Council Members
City of Huntington Beach, California
Mayor and Council Members:
This document is the Comprehensive Annual Financial Report for the City of
Huntington Beach for the fiscal year ending September 30, 1995. 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
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Marwick LLP.
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This report is organized into three sections:
INTRODUCTION - The introductory section includes this transmittal letter, the City's
organizational chart and a list of the principal officials of the City.
FINANCIAL- The financial section includes the general purpose financial statements, the
individual fund and account group financial information and the auditors report on the
general purpose 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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TRANSMITTAL LETTER
ECONOMIC CONDITION AND OUTLOOK
The Orange County bankruptcy dominated the year's finances for Huntington Beach
and nearly all governments in Orange County. Huntington Beach received a return of
80% of its $43.6 million investment in the Orange County Investment Pool leaving $9.6
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million in claims against the County. When the bankruptcy was announced, the City
took action to control expenditures and cash flow. This helped in coping with the
problem. The City took the following actions:
• A hiring freeze was implemented.
s . Expenses were reduced.
• Capital projects were delayed.
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Note 20 in the accompanying financial statements further describes the City's claims.
I Property and sales taxes grew slightly reflecting the national and local economy.
However, the City's general fund revenue growth has been very slow since 1990, and
the State has taken over $5 million per year from our property taxes. Demand for
services continues to increase. Only through continued fiscal discipline can the quality
of life in Huntington Beach be maintained by continuing priority services.
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MAJOR INITIATIVES
< < For the Year - Due to the Orange County bankruptcy most major capital projects were
f ; delayed to help with cash flow management. ' However, several major projects were
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continued or completed, as described below:
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• A major improvement to Beach Boulevard that was started in July, 1994 and
completed in early 1996 adds a lane of traffic in each direction.
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i The new Art Center on Main Street in downtown Huntington Beach began
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operations after completion of a major building renovation.
` Construction on Ruby's restaurant at the end of the Pier began after a 6
month delay due to the Orange County bankruptcy.
• The final phase of the Central Library expansion was completed with the
opening of an expanded parking lot.
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t , For the Future - The City's coastal location provides unique challenges in developing
s ; 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 future development in Huntington
Beach be economically and environmentally sound. Citing the openness of city
officials with business owners, free seminars and one-on-one business counseling at
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TRANSMITTAL LETTER
the Huntington Beach small Business Assistance Center, the City was ranked as the
number one City for Business out of 55 California cities with populations over 100,000_
It was also ranked as the number one safest city in the nation in a ranking of all cities
with populations over 100,000. The City also ranks as one of the lowest in
unemployment and one of the lowest in crime rates in a study published by Governing
Magazine.
The Orange County bankruptcy continues to cloud the City's financial future. Other
threats to the City's financial stability are.-
0 Potential State actions taking further City revenue to balance the State's
budget. During 1994/95 the State's actions reduced general fund revenue by
approximately $7 million with a total loss of over$24 million since 1990/91.
• The negative impact of the downsizing of the defense industry.
• Dwindling cash reserves for self-insurance and pension liabilities.
• Accumulating deferred maintenance on the City's infrastructure.
Over the past two decades, 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 and Federal Governments. Both the State and
Federal governments have sharply cut back funding to local governments at the same
time. While many of these expenditures serve worthwhile purposes, Congress and the
State Legislature must 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.
Budgetina 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,
TRANSMITTAL LETTER
for goods or services not yet completed or received. The City reports these as
reservations of fund balance in governmental fund types.
Financial Summary - Total General Fund revenues were $1,851,000 less than budget
estimates. Below is an analysis of general. fund revenues with explanations of
significant variations (greater than 5% and greater than $300,000):
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Revenue Source: $ in Thousands Budgeted Actual Amount % Over
Amount Amount Over (Under) Budget
(Under)
Budget
Property Taxes $ 25,631 $ 25,265 (366) (1.4) %
Sales Taxes 16,600 16,684 84 0.5 %
Other Taxes 19,610 19,756 146 0.7 %
Licenses and Permits 4,497 3,782 (715) (15.9) %
Fines and Forfeitures 2,059 2,134 75 3.6 %
F From Use of Money and Property 6,905 5,383 (1,522) (22.0) %
From Other Agencies 7,780 8,460 680 8.7 %
Charges for Current Service 8,852 8,595 (257) (2.9) %
Other 607 631 24 4.0 %
Total $ 92,541 $ 90,690 $ (1,851) (2.0) %
i Property taxes were less than budgeted due to larger than expected refunds due to
reassessments. Licenses and permits were less than expected due to slower-paced
development in the City. Revenue from the Use of Money and Property was less than
L expected due to reduced interest income resulting from the Orange County Bankruptcy.
Revenue from Other Agencies was greater than expected due to the State motor
vehicle license fee revenues exceeding their estimates.
Total General Fund expenditures were $2,255,000 less than budgeted. Below is an
analysis of General Fund expenditures with explanations of significant variations
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TRANSMITTAL LETTER
$ in Thousands 1994/95 1994/95 Amount % Under(Over)
Budget Amount Under budget
(Over)
Budget
City Council $ 243 $ 224 $ 19 7.8 %
City Administrator 957 834 123 12.9 %
City Treasurer 725 709 16 2.2 %
City Attorney 1,972 1,866 106 5.4 %
City Clerk 485 485 - - %
Administrative Services 4,200 4,200 - -%
Community Development 3,470 3,252 218 6.3 %
Fire 15,991 15,301 690 4.3 %
Police 31,842 31,814 28 0.1 %
Community Services 6,998 6,681 317 4.5 %
Library Services 2,645 2,661 (16) (0.6) %
Public Works 15,706 14,847 859 5.5 %
Non-Departmental 8,462 8,874 (412) (4.9) %
Capital Outlay 400 97 303 75.8 %
Debt Service 626 622 4 0.6 %
Total $ 94,722 $ 92,467 $ 2,255 2.4 %
Fire and Community Services expenditures were less than expected due to personnel
vacancies during the year. Non-departmental expenditures were greater than expected
due to increased utility costs. Capital outlay expenditures were less than expected due
to City actions to delay all discretionary expenses because of the Orange County
bankruptcy.
Bellow is an analysis of fund equity.
$In Thousands
GOVERNMENTAL FUNDS Total Equity Total Equity Percent Increase
1994195 1993/94 (Decrease)
Reserved $ 99,126 $ 102,561 (3.3) %
Designated 2,958 2,486 19.0 %
Unreserved/Undesignated 4,067 2,824 44.0 %
Total $ 106,151 $ 107,871 (1.6) %
Unreserved fund equity decreased primarily due to $5.5 million reserved for claims
from the Orange County bankruptcy and one-time expenditures approved during the
year.
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TRANSMITTAL LETTER
PROPRIETARY FUNDS Total Equity Total Equity Percent Increase
1994195 1993/94 (Decrease)
Contributed Capital 61,766 $ 59,127 4.5 %
Retained Earnings (3,015) 5,280 n/a %
Total $ 58,751 $ 64,407 (8.8)
Retained earnings decreased primarily due to losses in the Enterprise and Internal
Service Funds (see below).
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.
Shown below is an analysis of the City's five enterprise funds:
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$In Thousands
Enterprise Funds Water Meadowlark Emerald Cove FireMed Refuse Cultural
Affairs
Operating Revenues $ 15,773 $ 246 $ 604 $ 2,563 $ 7,923 $ 11C
Operating Income (Loss) (2,244) (186) 224 314 (483) (283)
Net Income (Loss) (3,048) (586) (289) 314 (489) (256)
Debt Service Coverage n/a n/a 0.43 n/a n/a n/e
The losses are primarily due to long-term receivables from the Orange County
Investment Pool. The City reserved the amounts due to these funds relating to the
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Shown below is a table analyzing the performance of the City's internal service funds
(in thousands):
Internal Service Funds Self-Insurance Equipment
Replacement
Operating Revenues $ 8,120 $ 2,147
Operating Loss (1,751) (1,199)
Net Income (Loss) (2,078) (1,863)
The loss in the Self-Insurance Fund relates to bankruptcy losses and continued
' increases in claims exposure. Beginning in 1996, staff is examining methods of
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' improving the finances of the City's self-insurance program. A mid year (1995/96)
budget amendment is planned to further address the underfunding of insurance
programs. The loss in the Equipment Replacement Fund is primarily due to
` bankruptcy losses and depreciation expenses.
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TRANSMITTAL LETTER
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 PERS, the City's total future pension obligation for all current and retired
employees was $219,307,000 and assets available for these obligations was
$248,761,000 leaving surplus of$29,454,000.
The City also maintains a supplemental retirement plan. An independent actuarial
study performed as of June 30, 1995 showed the total unfunded pension liability for this
plan was $13,643,668. The contribution rate required to fund this plan is 3.80% of total
salary. In 1995/96, the City tripled the annual funding of this plan with full funding of
this plan expected by 1997/98.
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 $4,810,000 representing
continued growth of the City's deferred compensation plan.
Debt Administration -The City's outstanding long-term debt at year-end was:
Reservoir Hill Assessment District Bonds $ 1,255
Public Financing Authority Revenue Bonds (Redevelopment Agency) 32,285
Certificates of Participation:
Emerald Cove Housing (Redevelopment Agency) 5,475
Civic Improvement Corporation 35,800
Public Financing Authority 1,255
Public Facilities Corporation Leasehold Mortgage Bonds 745
Notes Payable (Redevelopment Agency) 654
Other:
Compensated Absences 5,130
Self-Insurance Claims 11,266
Advances to Other Funds (Redevelopment Agency) 71,784
Advances to Other Funds (Other) 243
Total $ 165,892
The City's legal debt limitation for general obligation bonds is 12% of the total of
assessed valuation in the city. During the year the City retired all of the general
obligation bonds leaving the city's legal debt margin at nearly$1.5 billion.
Moody's Investor's Service rates certain obligations as to their safety as an investment.
Below are the current ratings of certain City obligations:
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TRANSMITTAL LETTER
Civic Improvement Corporation Certificates of (Aaa)
Participation (Insured)
Public Facilities Corporation Leasehold Mortgage (Al)
Bonds
Public Financing Authority 1992 Revenue Bonds (Ba)
(Redevelopment)
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, and the
State Local Agency Investment Fund. The cash management system of the City
monitors and forecasts revenues and expenditures to maximize investment capabilities.
The investment of non-restricted cash and investments yielded interest of $3,564,127
for an average return of 5.45% during the year.
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. Note 3 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
F 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
r ' through a managed program of pooling and private insurance. The City also maintains
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E_ss privately purchased insurance coverage for worker's compensation and employee
health claims in excess of certain amounts.
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OTHER INFORMATION
The Single Audit Act of 1984 requires the City's grant programs that use Federal funds,
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
z organization-wide examination of financial operations. Copies of this audit are
available from this office.
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TRANSMITTAL LETTER
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
Component unit reports (stand-alone reports) are available for the Redevelopment
Agency, the Public Facilities Corporation and the Public Financing Authority.
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 September 30, 1994 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.
We believe that this year's report conforms to the GFOA'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 for his work
in the preparation of this report.
Sincerely,
Rob . Franz
Deputy City Administrator
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CITY OF HUNTINGTON BEACH
. . PRINCIPAL CITY OFFICIALS
CITY COUNCIL
Victor Leipzig, Mayor
Dave Sullivan, Mayor Pro-Tem
f Ralph Bauer, Councilmember
Shirley Dettloff, Councilmember
r ? Dave Garofolo, Councilmember
Peter Green, Councilmember
Tom Harman, Councilmember
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..' OTHER ELECTED OFFICIALS
Connie Brockway, City Clerk
Gail Hutton, City Attorney
L' Donald Watson, City Treasurer
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ADMINISTRATIVE OFFICIALS
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Michael Uberuaga, City Administrator
i Ray Silver, Assistant City Administrator
Robert J. Franz, Deputy City Administrator
David C. Biggs, Director of Economic Development
F Michael bolder,:Fire Chief
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Ron Hagan, Community Services Director
r 1 Ron Hayden, Library Services Director
Les Jones, Public Works Director
Ron Lowenberg, Police Chief
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CITY OF HUNTINGTON BEACH
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CITY COUNCIL CITY CITY CTI'Y
URER ATTORMY CLERK
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ADIDAIDUSTRATOR
ASSISTANT CITY
MINISTRATOR
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NIIMISTRATION 1}EPIJTY CITY
NUMSTRATOR
PUBLIC
INFORMATION
ECONOMIC VEVELOPMEN7
OMMUNITY PUBLIC POLICE FIRE ADMINISTRATIVE COMMUNITY LIBRARY
DEVELOPMENT WORKS SERVICES SERVICES SERVICES
Econamk UtdFoem Fae Recreation& Puldic
Development P�"�$ TMDe
Division Prevention F'11 Huaw Svcs Service
Redevelopment Building WRer Administrative Orations Inlortoation Bosch Support
Division Systems DbLskm Services
lmestigalim Emergency Cultural
Housing Landscape Divid" Services Peraotusel Arts
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Services Tek- Real
Divlsion ommunieafions Property
Insurance
&Benefits
ORGANIZATIONAL CHART
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Certificate of
Achievement -
for Excellence
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Presented to
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City of Huntington Beach,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 1994
A Certificate of Achievement for ExceAence in Financial
[ t Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
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FINANCIAL SECTION
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Peat Marwick LLP
Center Tower
650 Town Center Drive
Costa Mesa, CA 92626
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INDEPENDENT AuDTT'ORS'REPORT
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The Honorable 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 year ended September 30, 1995, as listed in the accompanying table of
contents. These general purpose financial statements are the responsibility of the City's
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E: management. Our responsibility is to express an opinion on these general purpose financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards issued by the Comptroller General of the United States. 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
F ' our audit provides a reasonable basis for our opinion.
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4 ' In our opinion, the general purpose financial statements referred to above present fairly, in a 1 I
material respects, the financial position of the City of Huntington Beach, California, as of
September 30, 1995, and the results of its operations and cash flows of its proprietary fund types of
L the year then ended in conformity with generally accepted accounting principles.
{ ' In accordance with Government Auditing Standards, we have also issued a report dated
January 24, 1996 on our consideration of the City of Huntington Beach, California's internal control
structure and a report dated January 24,1996 on its compliance with laws and regulations_
Our audit was made for the purpose of forming an opinion on the general purpose financial statements
E 1 taken as a whole. The comparative, combining, individual fund and account group financial
statements and schedules listed in the supplementary information section of the accompanying table
I 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 general purpose financial
I statements and, in our opinion, is fairly stated in all material respects in relation to the general
? ; purpose financial statements taken as a whole.
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January 24, 1996
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Mem4er Firm of
Kiymeld Pea[Mack Goerdeier
CITY OF HUNTINGTON BEACH
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROI.. 'S
SEPTEMBER 30,1995
(IN THOUSANDS)
GOVERNMENTAL FUNDS PROPRIETARY FUNDS
ASSETS AND OTHER DEBITS General Special Revenue Debt Service Capital Projects Enterprise Internal Service
Cash and Investments(Notes 1e and 3) $ $ 8,093 $3,624 $ 11,304 $ 2Al2 $ 4,766
Cash With Fiscal Agent(Note 3) - - 6,184 162 471 5
Taxes Receivable(Note 11) 10,306 - 1,239 - -
Other Receivables 2,699 4,188 1,009 2,516 3,314 105
Unbilled Receivables(Note 1b) - - - 2223
Inventory(Note 1g) 310 - - - 676
Due from Other Funds(Note 10) 116 - 49 66 6,948 1,677
Deposits and Other Assets 91 4,479 - 50 - 997
Advances to Other Funds(Note 1 D) 29,752 4,881 29,563 2,547 5,284 -
investment in Joint Venture(Note 18) - - - - - 419
Land Held for Resale(Note 11) - - 16,604 - -
Property,Plant and Equipment (Net)(Note 1f and 15) - - 42,809 11,872
Amount Available in Debt Service Funds(Note 16) - - - - - -
Amount to be Provided for Payment of Long-Term Debt - -
TOTAL ASSETS AND OTHER DEBITS $ 43,274 $ 21,641 $ 41,668 $ 33,249 $ 64,137 $ 19,841
LIABILITIES,FUND EQUITY AND OTHER CREDITS
LIABILITIES
Accounts Payable $ 1,791 $ 265 $ - $ 295 $ 1,764 $ 590
Other Accrued Liabilities 1,227 54 159 8 126 38
Deposits 80 105 - 32 2,345 -
Leases Payable(Note 15) - - - - 315
Due to Other Funds(Note 10) 4,588 862 - 11859 1,193 143
Advances from Other Funds(Notes 10 and 12) - - - - 243 -
Deferred Compensation(Note 4) - - - - -
Claims Payable(Note 9) - - - 11,266
Funds Held for Others - - - - - -
Other Deferred Revenue(Note 5) 6,198 8,498 - 153 -
Deferred Taxes(Note 5) SA25 - 1,082 - -
Current Portion of Long Term Debt - - - - 85 1,452
Long-Term Debt(Notes 12 and 13) - - - - 5,390 -
Compensated Absences(Notes 1j,12,13) - - - - 246 31
TOTAL LIABILITIES 20,309 9,784 1241 2,347 11,392 13,835
FUND EQUITY AND OTHER CREDITS
Contributed Capital(note 11) - - - - 43,197 18,569
Investment in General Fixed Assets - - - - - -
Retained Earnings-Unreserved(Accumulated Deficits)(note19) - - - - 9,548 (12,563)
Fund Balances(Deficits)(Notes 16,19):
Reserved 26,147 4,942 40,427 27,610 -
Unreserved:
Designated - 1,412 - 1,546 - -
Undesignated (3,182) 5,503 - 1,745
TOTAL FUND EQUITY AND OTHER CREDITS 22,965 11,857 40,427 30,902 52,745 6,006
TOTAL FUND EQUITY,LIABILITIES AND OTHER CREDITS $ 43,274 $ 21,641 $ 41,668 $ 33,249 $ 64,137 $ 19,841
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See Notes to General Purpose Financial Statements 2
FIDUCIARY FUND (Memorandum
TYPES ACCOUNT GROUPS Only)
r , General Long-
General Fixed Term Debt
Trust and Agency Assets Account Group Total
$ 5,228 $ $ $ 35,427
33,553 40,375
- - 11.545
942 - - 14.773
2.223
- - 986
78 - 8,934
j 783 - - 6,400
l - - - 72.027
852 - 1,271
- - 16,604
i
130,881 - 185,562
3 - 10.069 10,069 _
137,406 137,406
$ 40.584 $ 131.733 $ 147,475 $ 543.602
„
( $ $ - $ $ 4,705
22 - - 1,634
r , 2.404 - - 4,966
- - - 315
289 8,934
71,784 72,027
33,983 - - 33,983
} - -
11,266
j 4.175 - - 4,175
- - - 14,849
- - 7,507
f F - - - 1,537
- - 70.838 76,228
t - 4,853 5.130
40,873 - 147.475 247,256
- - -
F 61,766
f - 131,733 131,733
T - - (3,015)
- - 99,126
2,958
r (289) 3,778
(289) 131,733 - 296.346
( $ 40,584 $ 131,733 3 147.475 $ 543,602
f
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THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1995
(IN THOUSANDS)
Totals
Special Revenue Debt Service Capital Projects (Memorandum
REVENUES: General Fund Funds Funds Funds On iv)
Property Taxes (Note 1) $ 25,265 $ - $ 4,843 $ - $ 30,108
Other Taxes 36,440 1,326 - 493 38,259
Licenses and Permits 3,782 2,147 - 49 5,378
Fines,Forfeitures and Penalties 2.134 - - - 2,134
z ' From Use of Money and Property. 5,383 1,332 3,364 1,625 11,704
From Other Agencies 8,460 10.620 - 861 19,941
Charges for Current Service 8,595 111 - 8,706
Other $31 321 119 1,071
i TOTAL.REVENUE 90,690 15,857 8,207 3,147 117,901
EXPENDITURES:
Current
City Council 224 - - - 224
City Administrator 834 838 - - 1,672
City Treasurer 709 - - - 709
City Attorney 1,866 - - - 1,866
` City Clerk 485 - - - 485
Administrative Services 4,200 - - - 4,200
Community Development 3,252 - - 3,252
Fire 15,301 3 - - 15,304
Police 31,814 981 - - 32,795
Economic Development - 945 - 1,692 2,637
k Community Services 6,681 350 - 33 7,064
Library Services 2,651 260 - - 2,921
Public Works 14,847 1,827 - 40 16,714
( t Non-Departmental 8,874 539 424 116 9,953
Capital Outlay 97 8,204 - 4,657 12,958
Debt Service(Nate 12)
Principal 18 - 3,420 - 3A38
Interest 604 7,891 8,495
TOTAL EXPENDITURES 92,467 13,947 11,735 6,536 124,687
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (1,777) 1,910 (3,528) (3,391) (6,786)
OTHER FINANCING SOURCES(USES):
Operating Transfers In(Note 10) 12,833 1,679 3,204 2,193 19,909
Proceeds of Long-Term Debt(Note 12) - - 142 5,182 5,324
Operating Transfers Out(Note 10) (3,725) (9,957) (1,033) (5,451) (20,166)
TOTAL OTHER FINANCING SOURCES(USES) 9,108 (8,278) 2,313 1,924 5,067
r EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES 7,331 (6,368) (1,215) (1,467) (1,719)
FUND BALANCE-BEGINNING OF YEAR 15,834 18,225 41,642 32,369 107.870
FUND BALANCE-END OF YEAR $ 22,965 $ 11,857 S 40,427 $ 30,902 $ 106.151
F
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3
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See Notes to General Purpose Financial Statements 4 '
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
GENERAL,SPECIAL REVENUE AND DEBT SERVICE FUNDS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
GENERAL FUND SPECIAL REVENUE FUNDS
Variance Variance
Favorable Favorable
REVENUES: Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Property Taxes $ 25,631 $ 25,265 $ (366) $ - $ _ $
Other Taxes 36,210 36,440 230 1,25D 1,326 76
Licenses and Permits 4,497 3,782 (715) 2205 2,147 (58)
Fines,Forfeitures and Penalties 2,059 2,134 75 - _From Use of Money and Property 6,905 5,383 (1,522) 1,466 1,332 (134)
From Other Agencies 7,780 8,460 680 12,202 10,620 (1,582)
Charges for Current Service 8,852 8,595 (257) 320 111 (209)
Other 607 631 24 543 321 (222)
TOTAL REVENUE 92,541 90,690 (1,851) 17,986 15,857 (2,129)
EXPENDITURES:
Current:
City Council 243 224 19 - - -
City Administrator 957 834 123 1,545 838 707
City Treasurer 725 709 16 - -
City Attorney 1.972 1,866 106 - -
City Clerk 485 485 - - -
Administrative Services 4,2D0 4,200 -
Community Development 3A70 3,252 218 - -
Fire 15,991 15,301 690 21 3 18
Police 31,842 31,814 28 1,195 981 214
Economic Development - - - 2,948 945 2,003
Community Services 6,998 6,681 317 581 350 231
Library Services 2,645 2,661 (16) 349 260 89
Public Works 15,706 14,847 859 2,247 1,827 420
Non-Departmental 8,462 8,874 (412) 710 539 171
Capital Outlay 400 97 303 15,890 8204 7,686
Debt Service: - - - -
Principal 18 18 - - - -
Interest 608 604 4
TOTAL EXPENDITURES 94,722 92,467 2,255 25,486 13,947 11,539
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,181) (1,777) (404) (7,500) 1,910 9,410
OTHER FINANCING SOURCES(USES):
Operating Transfers In 12,821 12,833 12 1,769 1,679 (90)
Proceeds of Long-Term Debt - - - - - -
Operating Transfers Out (3,725) (3,725) (10,072) (9,957) 115
TOTAL OTHER FINANCING SOURCES(USES) 9,096 9,108_ 12 (8,343) (8278) 25
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES 6,915 7,331 416 (16,803) (6,368) 9,435
FUND BALANCE-13EGINNING OF YEAR 15AS4 15,634 - 18.225 18225 -
FUND BALANCE-END OF YEAR $ 22,549 $ 22,965 $ 416 $ 2,422 $ 11,857 $ 9,435
See Notes to General Purpose Financial Statements 5
DEBT SERVICE FUNDS
Variance
Favorable
Budget Actual (Unfavorable)
$4,252 $4,043 $ 591
3,161 3,364 203
$7,413 $8,207 794
a
359 424 (65)
3D - 30
3,250 3,420 (170)
9,130 7,891 1,239
E 12,769 11,735 1,034
(5,356) (3,528) 1,828
d ?
3,005 3204 199
137 142 5
886 1,033 14
2,256 2,313 57
(3,100) (1,215) 1,885
41,642 41,642 -
$ 38,542 $ 40,427 $ 1,885
t
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See Notes to Genera(Purpose Financial Statements 6
I
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1995
(IN THOUSANDS)
Fiduciary Fund Memorandum
Types Only
OPERATING REVENUES: Enterprise internal Service Pension Trust Total
Sales $ 15,371 $ $ - $ 15,371
Rentals 850 - - 850
Fees for Service 10,445 9,708 - 20,153
Other 553 559 386 1,498
TOTAL OPERATING REVENUES 27,219 10,267 386 37A72
OPERATING EXPENSES:
Water Purchases 4,472 - 4,472
Administration and Contract Services 14,490 4,313 - 18,803
Engineering 305 - - 305
Production 3,896 - - 3.896
Maintenance 1,129 - - 1,129
Water Meters 696 - - 696
Water Quality 361 - - 361
In-Lieu Taxes to General Fund 2,413 - - 2,413 _
Employee Medical Claims - 3,301 - 3,301
Liability Claims - 1,347 - 1,347
Workers Compensation Claims 1,997 - 1,997
Pension Payments - - 561 561
Non-Departmental 613 - - 613
Depreciation 1,502 2,259 - 3,761
TOTAL OPERATING EXPENSES 29,877 13,217 561 43,655
OPERATING INCOME(LOSS) (2,658) (2,950) (175) (5,783)
NON-OPERATING REVENUES(EXPENSES)
Interest income 1,057 355 - 1,412
Loss on County Investment Pool (2,247) (1,233) (3,480)
Interest Expense(Note 13) (464) (166) - (632)
Joint Venture(Note 18) (149) (95) - (244}
TOTAL NON-OPERATING REVENUES(EXPENSES) (1,803) (1,141) - (2,944)
NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (4,461) (4,091) (175) (8,727)
OPERATING TRANSFERS IN(OUT)(NOTE 10)
Operating Transfers In(Nate 10) 161 150 311
Operating Transfers Out(Note 10) (54)
TOTAL OPERATING TRANSFERS IN(OUT) 107 150 - 257
NET INCOME(LOSS) (4,354) (3,941) (175) (8,470)
RETAINED EARNINGS(ACCUMULATED DEFICIT)-
BEGINNING OF YEAR 13,902 (8,622) (114) 5,166
RETAINED EARNINGS(ACCUMULATED DEFICIT) -END OF
YEAR $ 9,548 $ (12,563) $ (289) $ (3,304)
See Notes to General Purpose Financial Statements 7
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
Total
(Memorandum
Enterprise Intemal Service Only) _
CASH FLOWS FROM OPERATING ACTIVITIES
OPERATING INCOME(LOSS) $ (2,658) $ (2,950) $ (5,608)
Adjustments Required to Reconcile Operating Income(Loss)to
Net Cash Provided (l ed)by Operating Activities:
Depreciation 1,502 2,259 3,761
Decrease(Increase)in Accounts Receivable 17 142 159
Decrease(Increase)in Prepaid Insurance (335) (335)
Decrease(Increase)in Interest Receivable 47 - 47
Decrease(Increase)in Unbilied Receivable (142) (142)
Decrease(Increase)in Advance to Other Funds (280) (73) (353)
Decrease(Increase in Due from Other Funds 225 - 225
` Decrease(Increase)in Inventory 35 - 35
Increase(Decrease)in Accounts Payable (785) 518 (267)
increase(Decrease)in Accrued Payroll B 5 13
Increase(Decrease)in Interest Payable (60) - (60)
Increase(Decrease)in Leases Payable - (115) (115)
Increase(Decrease)in Amount Due to Other Funds 679 56 735
Increase(Decrease)in Deposits (2) (2)
Increase(Decrease)in Compensated Absences (85) 6 (79)
TOTAL ADJUSTMENTS 1,159 2,463 3,622
NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES (1,499) (487) (1,986)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:
Operating Transfers In From Other Funds 161 150 311
Decrease in Claims Paid - 406 406
Operating Transfers Out to Other Funds (54)
TOTAL CASH FLOWS PROVIDED(USED)FROM NON-
CAPITAL FINANCING ACTIVITIES 107 556 663
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
€. Interest Paid (464) (168) (632)
Acquisition and Construction of Capital Assets (3,100) (1,611) (4,711)
Proceeds of Sale of Plant.Property and Equipment 98 563 661
Loss on Sale of Assets - 108 108
Principal Paid on Long-Term Debt (1,601) (1,255) (2,856)
TOTAL CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (5,067) (2,363) (7,430)
p CASH FLOWS FROM INVESTING ACTIVITY -
Joint Venture Cash Paid (149) - (149)
` } Loss on Orange County yInvestment Pool (2.247
) (1,233) (3,480)
Interest on Investments 1,057 355 1,412
TOTAL CASH FLOWS FROM INVESTING ACTIVITY (1, ) (2,2171
NET INCREASE(DECREASE)IN CASH AND CASH
EQUIVALENTS (7,798) (3,172) (10,970)
CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 10,681 7,943 18,624
CASH AND CASH EQUIVALENTS,END OF YEAR $ 2,683 $ 4,771 $ 7,654
i NON-CASH ACTIVITIES:
Plant,Property,and Equipment Contributions $ 2,097 $ 543 $ 2,640
Joint Venture Activity ($149) $ (95) $ (244)
- uirrr�
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E ! See Notes to General Purpose Financial Statements 8
L1
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THIS PAGE LEFT BLANK INTENTIONALLY
i
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. REPORTING ENTITY
3. CASH AND INVESTMENTS
4. DEFERRED COMPENSATION
5. DEFERRED REVENUE
6. RETIREMENT PLAN — NORMAL
3 ,
7. RETIREMENT PLAN — SUPPLEMENTAL
8. POST RETIREMENT MEDICAL INSURANCE
r �
s 9. RISK MANAGEMENT —
10. INTERFUND TRANSACTIONS
} r
11. PROPRIETARY FUND SEGMENT INFORMATION
12. GENERAL LONG-TERM DEBT
13. PROPRIETARY FUND LONG-TERM DEBT
14. LONG—TERM DEBT NOT RECORDED IN FINANCIAL
x
STATEMENTS
15. FIXED ASSETS AND CAPITAL LEASES
16. RESERVES AND DESIGNATIONS OF FUND EQUITY
17. COMMITMENTS AND CONTINGENCIES
18. JOINT VENTURES
f j
f
19. OTHER INFORMATION
20. ORANGE COUNTY BANKRUPTCY
� sE
21. SUBSEQUENT EVENTS
L -
Lg
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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 govemmentaf activity. The City maintains the
following fund types and account groups:
Governmental Fund Types:
The General Fund accounts for all financial activity not required to be accounted for in
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 Proiects 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.
The City recovers the cost of a particular service furnished to the public on a cost
reimbursement (expenses including depreciation) basis or when the City wants to
determine net income.
Internal Service Fu!3ds account for goods and services provided by one department of
the City to another on a cost-reimbursement basis.
Fiduciary
Fund Types,
Aciency 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.
9
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of Fund Types and Account Groups:
Account Groups:
• The General Fixed Assets Account Group records and controls the City's capital assets
not owned by proprietary funds.
The General Long 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 debt 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.The City has selected GASB pronouncements for its proprietary funds.
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 must 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 improvement projects
10
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Budgets and Budgetary Accounting:
(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 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 totalling
$1,858,000 which included carryovers of prior year encumbrances.
The City Council adopts governmental fund budgets consistent with generally accepted
accounting principles as legally required. 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 financial resources.
On or before May 31 st of each year 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
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.
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.
11
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
f. Property and Equipment:
The City records acquisitions of property and equipment as expenditures in
governmental 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
lant 10 to 50 years
General Plant 20 to 50 years
Transportation Equipment 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 govemmental 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.
h. Interfund Transactions.,
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.
T
0 Operating transfers are non-recurring transfers between funds.
L 1 0 Residual equity transfers are non-routine permanent transfers of equity between
funds.
rf
12
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
9. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): .
h. Interfund Transactions:
• 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.
• 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
amounts to be received from other funds. In governmental funds, amounts
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 intertund 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 made from that, are recorded as expenditurestexpenses. All other intertund
transactions are reported as operating transfers.
L Long-Term Obligations:
The City records governmental fund long-term debt (principal, interest and fiscal
charges) 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 Long-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
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
of the debt.
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.
13
rt
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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.
T
Unreserved/Designated Fund Balance is the portion of fund balance that has been
tentatively set aside by the City Council.
II
Unreserved/Undesignated Fund Balance is the portion of fund balance that is
available to be spent by the City Council.
Proprieta Fund Types:
• Retained Earnings is the accumulated earnings of an enterprise or intemal service
fund.
is
• 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,
if T
Pension Trust Fund
Reserved fund balance is the portion of fund balance reserved for future pension
F payments,
I
Account Groups
Investment in General Fixed Assets is the City's investment in general fixed assets
recorded at cost-
VJ 1. Property Tax Revenue:
ll
r = Property tax in California is levied according to Article 13-A of the California
L
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.
14
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, '1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
1. Property Tax Revenue:
The County acts as a collection agent for property tax for all of the local governmental
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 1 st- 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-Aprif 10th
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 1 st- balance of first installment
March 28th-5%
• April 26th-34%
• July 26th- balance of second installment
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. These amounts are offset by a
deferred revenue. 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.
15
E
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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
j 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).
i.`
p.Joint Ventures:
The City is involved in five joint ventures. Two of them are recorded in proprietary fund
types using the equity method of accounting. The net increase or decrease in the City's
equity position 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
-L Assets Account Group(see note 18).
q.Cash Flow Statements:
For purposes of the Statement of Cash Flows, the Proprietary Fund types consider all
cash and investments to be cash equivalents, as these funds participate in the city-wide
cash and investment pool.
6
2. REPORTING ENTITY:
The City of Huntington Beach is the primary government. It was incorporated in 1949, is
a charter city, and is a full-service City. The form of government is Council-Manager.
Component units are legally 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
i 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.
fz
�...1
16 j
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
2. REPORTING ENTITY(CONTINUED):
• 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
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.
The Public Facilities Corporation prepares a separate financial report and a copy can
be obtained from the City's Administrative Services Department.
Parking 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
bonds are now fully retired. The City .Council annually adopts a budget for the
Parking Authority. The Parking Authority is financially dependent on the City for all
its operations. There are no separate financial statements prepared for the Parking
Authority.
• 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 recorded 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. There are separately prepared financial
statements available for the Agency that are available from the City's Administrative
Services Department.
Huntington 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.
I7
r -r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
r !
FISCAL YEAR ENDING SEPTEMBER 30, 1995
T 2. REPORTING ENTITY(CONTINUED).
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.
There are no separate financial statements prepared for the Civic Improvement
Corporation.
It
•
Huntington Beach Public Financing Authority (Public Financing Authority)- This
corporation was formed in March, 1988 to issue debt to finance public improvements
I 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
recorded as both a debt service fund and as a portion of the activity in the
Equipment Replacement Fund (a proprietary fund type). There are separately
prepared financial statements available for the Public Financing Authority that are
available from the City's Administrative Services Department.
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.
The goveming 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. There are no separate
{ financial statements prepared for these entities.
T i
The Huntington Beach Auto Business Improvement District (the Business
` Improvement District) was formed in 1992 to fund capital improvements within this
t non-contiguous district. The District's governing body is the City Council. The
i 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
i Tan agency fund. There are no separate financial statements for this entity.
The joint ventures described in note 18 are not part of the reporting entity because the
City is not accountable for their financial operations. The City is fiscal agent for 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
{ i the West Orange County Water Board is recorded in the Water Fund (an enterprise
# fund) as a joint venture.
( ( 18
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
3. CASH AND INVESTMENTS:
Cash and investments at year-end totaled $75,802,000 and are shown in the
accompanying financial statements as follows (in thousands):
Cash and Investments $35,427
Cash with Fiscal Agent 40,375
Total $75,802
The City's investment policy and section 53501 of the Califomia Govemment Code
allows the following investments:
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:
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 Ca€ifomia 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.
€. 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.
19
fl
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
3. CASH AND INVESTMENTS (CONTINUED):
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-,
iz
Deposits
Category 11- 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.
A summary of the City's September 30, 1995 deposits follows(in thousands):
DEPOSITS., Category I Category 2 Category 3 Non- Bank Carrying Amount
i r Categorized Balance/Cost
Demand Accounts $ 112 $ 7,863 $ $ - $ 7,975 $ 1,430
Certificates of 6,822 6,822 6,822
f I
L 7 Deposit
Total-Deposits $ 112 $ 14,6135 $ $ $ 14,797 $ 8,252
is
o
f 1 20
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
3. CASH AND INVESTMENTS (CONTINUED):
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.
Category 3- Uninsured investments, where the financial institution's trust department
or agent holds the securities but not in the City's name.
A summary of the City's investments at September 30, 1995 follows(in thousands):
INVESTMENTS: Category 1 Category 2 Category 3 Non- Market/Contract
Categorized Cost/Carryin Value
_ g Value
Commercial Paper $ - $ 2,000 $ - $ - $ 2,000 $ 2,100
Investment in L.A.I.F. - - - 18,207 18,207 18,207
Federal Obligations - 7,990 - - 7,990 7,930
Repurchase - 5,800 - - 5,800 5,800
Agreements
Subtotal of Pooled - 15,790 - 18,207 33,997 34,037
Investments
Deferred - - - 33,553 33,553 33,553
Compensation
Investments
(Note 4)
Total Investments $ - $ 15,790 $ - $ 51,760 $ 67,550 $ 67,590 ,
* Deposits and investments, other than Deferred Compensation, are recorded at cost,
which approximates estimated market value Deferred Compensation investments
consist of mutual funds and are recorded at market value.
At September 30, 1995, the market value of L.A.I.F. was $25,605,668,000. The City's
proportionate share of that value was $18,292,000. Included in LAIF's investment
portfolio are certain securities in the form of structured notes and asset-backed
securities. L.A.I.F's and the City's exposure to credit, market, or legal risk is not
available but management believes it to be immaterial to the City's financial statements.
21
r
i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
4. DEFERRED COMPENSATION:
r -
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
the plan remain subject to the general claims of creditors of the City. The amount of
deferred compensation payable at year-end was $33,983,000. The City has the
fiduciary responsibility to administer the plan, the assets are recorded in an agency fund.
' T The City believes it is unlikely that these assets will be used to pay general creditors
now or in the future.
r S. DEFERRED REVENUE:
Certain revenues in governmental funds are deferred until received. The amounts are
(in thousands):
d a. Other Deferred Revenue:
T , GENERAL FUND:
Interest on General Fund Advances to $ 6,198
Redevelopment Agency
TOTAL GENERAL FUND 6,198
I
SPECIAL REVENUE FUNDS:
Park Acquisition and Development Fund:
Sale of Emerald Cove Site to 1,985
r , Redevelopment Agency
Development Fees Deferred in 1985 248
Land-in-lieu Park Fees 4,479
Interest 1,123
i.. Total Park Acquisition and Development 7,835
Fund
i Sewer Fund
Deferred Development Fees 38
Interest on Developer Fees and Advances 67
to Redevelopment Agency
Total Sewer Fund 105
c.�
Gas Tax Fund:
Interest on Advances to Redevelopment 376
Agency
1 Drainage Fund:
Deferred Development Fees 54
' Interest on Developer Fees and Advances 128
I J to Redevelopment Agency -
Total Drainage Fund 182
? TOTAL SPECIAL REVENUE FUNDS 8,498
22
s
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
5. DEFERRED REVENUE (CONTINUED):
a. Other Deferred Revenue:
CAPITAL PROJECTS FUNDS:
Capital Improvement Fund:
Interest on Advances to Redevelopment 119
Agency
Parking Authority
Interest on Advances to Redevelopment 34
Agency
TOTAL CAPITAL PROJECTS FUNDS 153
TOTAL OTHER DEFERRED REVENUE $ 14,849
b. Deferred Property Taxes:
As described in note 1(I), the City records deferred property taxes for revenues
generated but not available at September 30, 1995. These amounts are(in thousands):
General Fund $ 6,425
Debt Service Funds:
Redevelopment Agency 1,082
Total Deferred Property Taxes $7,507
23
i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
6. RETIREMENT PLAN - NORMAL:
r ,
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.
T
3� 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
r r service. Benefits for employees vary based upon final yearly compensation, safety
or non-safety status, and age at retirement. There are two groups of covered
employees.
Safety employees-include sworn 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 are made on a year ending .Tune 30th, which differs from the City's
i fiscal year.
b. Employer and Employer Contribution Obligations:
f ' The City makes two types of contributions 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 made 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
I rates for the fiscal year ending September 30, 1995 are:
k
October 1, 1994 July 1, 1995 to
r = to June 30, 1995 September 30,
Membership Groue 1995
Local Miscellaneous Members 6.926% 6.963%
f ; Local Safety Members 12,804% 12.754%
i
i The member rates for the year are:
f t Member Rates
as a Percentage
' = Membership Group of Wages
Local Miscellaneous Members 7%
Local Safety Members 9%
l.,
24 i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
6. RETIREMENT PLAN - NORMAL (CONTINUED):
b.Employer and Employer Contribution Obligations:
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:
The 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, 1995. Significant actuarial assumptions used were as follows:
• Rate of return on present and future assets: 8.50%per annum
• Projected salary increases for covered employees due to inflation-4.5% per annum
• Projected salary increases due to merit- .75% per annum
• Across the board real salary increases-0%)
Postretirement benefit increases-0%
The overfunded pension benefit at June 30, 1995 was $29,454,000. Changes in the
pension benefit obligation were due to (n thousands):
Changes in Benefit Provisions 0
Changes in Actuarial Methods and Assumptions ($7,288)
The changes were due to showing assets at smoothed market value. In prior years, the
assets were shown at book value.
Other actuarial information is(in thousands):
Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving benefits $98,700
Current Employees:
Accumulated employee contributions and investment 57,718
earnings
Employer Financed-Vested 60,743
Employer Financed- Non-Vested 2,146
Total Pension Benefit Obligation 219,307
Less Net Assets Available for Benefits at Actuarial
Value (Market$248,014,000) (248,761)
Overfunded Pension Benefit 129-454.
25
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
6. RETIREMENT PLAN - NORMAL (CONTINUED):
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 the date of employment until retirement. CALPERS uses a modification of
this method where the employer's total normal cost is expressed as a level percent of
payroll. CALPERS also uses the level percentage 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
benefits and 2011 for current service benefits.
The significant actuarial assumptions used to compute the actuarially determined
contribution requirement are the same as those used to compute the pension benefit
t obligation as previously described.
The contribution to the system for the year was $8,931,000 and was made according to
actuarially determined requirements computed through a valuation performed as of June
30, 1994. The contribution was applied as follows(in thousands):
` The contributions were applied as follows in thousands
Normal Unfunded Total
Liability
Employee Contributions(Reimbursed by $ 4,119 $ - $ 4,119
City)
Member Contributions 4,418 394 4,812
f Total $ 8,537 $ 394 $ 8,931
e. Trend Information:
r
i_ 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
r Beach is not published in the CALPERS Annual Reports. Therefore, ten years of trend
z :
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 fiscal year end of CALPERS (July 1st to June 30th) 1987/88 is
the first year that this information was made available by CALPERS and until ten years
are available, as much information as available will be presented (dollar amounts in
millions):
{ T 26
c_F
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
B. RETIREMENT PLAN - NORMAL (CONTINUED):
1986-87 1987-88 1988-89 198"9 1990-91
Net Assets Available for $ 105.6 $ 120.6 $ 139.5 $ 158.7
Benefits
Pension Benefit Obilg2tion $ 115.3 $ 126.7 $ 138.9 $ 157.4
Net Assets Available 91.6% 95.2% 100.4% 100.8%
Expressed as a
Percentage of the
Pension Benefit
Obligation
Annual Covered Payroll 32.1 $ 34.4 $ 37.0 $ 40.4 $ 45,0
Unfunded(Overfunded) - $ 9.7 $ 6.1 $ (0-6) $ (1.3)
Pension Benefit
Obligation
Emp!o 4.5 4.4 4.5 yer Contributions $ 4.1 $ 3.9
Employer Contributions 14.0% 12-8% 122% 10.1%
Expressed as a
Percentage of annual
Covered Payroll made
According to Actuarially
Determined
Require ents
1991-92 1992-93 1993-94 1994-95
Net Assets Available for $ 168.6 $ 183.5 $ 203.9 $ 248-7
Benefits
Pension Benefit Obligation 171.9 189.8 $ 209-6 219.3
Net Assets Available 98.1% 96.7% 97.3% 113.4%
Expressed as a
Percentage of the
Pension Benefit
Obli qation
Annual Covered Payroll $ 48.4 $ 54.5 $ 54.5 $ 51.6
Unfunded(Overfunded) $ 33 $ 6.3 $ 5.7 $ (29.4)
Pension Benefit
Obligation
Employer Contributions $ 5.0 5.5 5.2 $ 4.8
Employer Contributions 10.3% 10.1% 9.5% 9.3%
Expressed as a
Percentage of annual
Covered Payroll made
According to Actuarially
Determined
Requirements
27
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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. 244 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 Ci!Y's normal
plan. The employer contribution rate for all permanent non-safety employees this year is
3.80% 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 plan (in thousands):
Retirees Currently Receiving Benefits $5,046
Active, Vested Safety Employees 3,629
Active,Vested Non-Safety Employees 4,679
Total Pension Benefit Obligation 13,354
Add Liabilities in Excess of Assets Available at June 30, 1994 290
Unfunded Liability 112�644
The changes in pension benefit obligation during the year were(in thousands):
Pension Benefit Obligation, Beginning of Year $13,249
Increase Due to Lack of Funding 1,957
Benefits Paid (562)
Decrease Due to Assumption Change (1,270)
t Decrease Due to Experience Gains (50)
New Participants 30
Pension Benefit Obligation, End of Year 13�354
28
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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):
1990191 1991/92 1992/93 1993/94 1994/95
Net Assets Available for $175 $157 $75 ($52) ($290
benefits
Pension Benefit Obligation $10,507 $11,402 $13,050 $13,250 $13,353
Net Assets Available for
benefits expressed as a
percentage of the pension 1.67% 1.38% .57% (.9%) (2.17%)
benefit obligation
Annual Covered Payroll $40,400 $48,400 $54,524 54,529 $51,526
Unfunded Pension Benefit $10,332 $11,245 $13,050 $13,302 $13,644
Obligation
Unfunded Pension Benefit
Obligation as a 25.6% 23.2% 23.9% 24.4% 26.5%
Percentage of Covered
Payroll
Employer Contributions $400 $240 $240 $240 $390
Employer Contributions
expressed as a
percentage of annual 1.0% .5% .4% .4% .8%
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 $390,000 and the pension trust fund expended $561,000. The total
pension benefit obligation for both the normal and supplemental plans are (in
thousands):
Total Obligation $222,949
Assets Available 4(2 7.725)
Unfunded Pension Benefit (224-7761
Obligation (Surplus)
29
' T
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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:
f '
r
. At the time of retirement the employee is employed by the City.
F
. At the time•of retirement the employee has a minimum of ten years of service credit or
is granted a service connected disability retirement.
L 1
. Fallowing official separation from the City, CALPERS grants a retirement allowance.
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.
. The retiree becomes eligible to enroll automatically or voluntarily in Medicare.
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
based on the years of service credit for the retiree. The retiree may use the subsidy for
a any of the insurance plans that the City's active employees may participate in.
C 17 b.Accounting and Funding:
i =
i_i
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
year-end. During the year other funds contributed $526,000. The fund gave subsidies of
$447,000. The plan is advance-funded, but not on an actuarial basis. 164 participants
were eligible to receive benefits during the year.
Sj
9. RISK MANAGEMENT:
The City is exposed to various risks of losses related to torts; theft of, damage to and
t. destruction of assets; errors and omissions; injuries to employees; natural disasters and
employee health insurance claims.
1 �
i
3
? 30
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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 up 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 $11,266,000 is composed of the following claim totals (in
thousands):
Balance Additions Reductions Balance,
October 1, September 30,
1994 1995
Liability $ 5,671 $ 1,347 $ (1,176) $ 5,842
Workers Compensation 5,070 1,997 (1,774) 5,293
.Health 119 3,301 (3,289) 131
Total $ 10,860 $ 6,645 $ (6,239) $ 11,266
Claims activity and liabilities relating to the prior year are (in thousands):
Balance,Jury 1, Additions Reductions Balance,September
1993 30,1_994
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 $ 9,951 $ (13,211) $ 10,860
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 and includes an estimate of
incurred but not reported claims.
31
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
r
I
10. 1NTERFUND TRANSACTIONS:
a. Receivables/Payables:
r Interfund advances at year-end were (in thousands):
i Advances to Other Advances from
Funds Other Funds
General Fund $ 29,752 $ -
Special Revenue Funds:
Gas Tax 876 -
Sewer 224 -
F Drainage 424 -
Park Acquisition and Development 3,357 -
Debt Service Funds:
Public Financing Authority 29,563 -
Capital
Ca Projects Funds
p� J -
Capital Improvement 319 -
s Parking Authority 134 -
Low-Income Housing 2,094 -
Enterprise Funds: -
? Water Utility 5,284 -
i . Emerald Cove Housing - 243
General Long-Term Debt Account Group - 71,784
r ? Total $ 72,027 $ 72,027
4 -
1 '
1 �
i.:
f '
t
�i
i 'f 32
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
10. INTERFUND TRANSACTIONS (CONTINUED):
b: Due To/From Other Funds:
Below is a schedule of amounts due to and due from other funds(in thousands):
Due from Other Due to Other
Funds Funds
General $ 116 $ 4,588
Special Revenue Funds:
Grants - 329
Library Service - 533 -
Debt Service Funds:
Redevelopment Agency 49 -
Public Financing Authority - -
Capital Projects Funds:
Redevelopment Agency 66 1,828
Library Expansion - 17
Holly Seacliffe - 14
Enterprise Funds:
Water Utility 6,948 -
Emergency Fire Medical - 546
Refuse Collection - 411
Cultural Affairs - 236
Internal Service Funds:
Self Insurance 1,647 143
Equipment Replacement 30 -
Trust and Agency Funds
Retiree Medical Insurance 78 -
Retirement Supplement - 289
Total $ 8,934 $ 8,934
c. Operating Transfers In/Out:
Below is a schedule reconciling operating transfers in and out:
Operating Transfers In, Governmental Funds $ 19,909
Operating Transfers In, Proprietary Funds 311
Total Operating Transfers In $ 20,220
Operating Transfers Out, Governmental Funds $ 20,166
Operating Transfers Out, Proprietary Funds 54
Total Operating Transfers Out $ 20,220
33
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
11. PROPRIETARY FUND SEGMENT INFORMATION:
a.Segment Information for Enterprise Funds:
The City maintains six enterprise funds; Water Utility, Meadowlark Golf Course, Emerald
Cove Housing, Emergency Fire Medical, Refuse, and Cultural Affairs. Certain key
financial data are (in thousands):
f I
Water Meadowlark Emerald Cove Emergency Fire Refuse Cultural Total
Golf Course Medical Collection Affairs
Operating $ 15,773 $ 246 $ 604 $ 2,563 $ 7,923 $ 110 $ 27,219
Revenues
Depreciation 1,369 82 51 1,502
Expense
Operating 80 81 161
Transfers In
Operating (54) (54)
Transfers Out
Operating Income (2,244) 224 314 (483) (283) (2,658)
(Loss) (186)
Net Income(Loss) (3,048) (289) 314 (489) (256) (4,354)
(586)
Fixed Asset 3,189 - 2,008 5,197
Acquisitions
Net Working 6,873 273 1,677 1,500 (7) (256) 10,060
Capital
Total Assets 48,607 3,325 6,875 2,225 1,096 2,008 64,137
Long-Term 210 5,633 21 15 5,879
Obligations Net
of Current
Portion
Total Equity 44,986 5-325 1.085 1619 (22) 1.752 52.745
t b.Contributed Capital:
The changes in Proprietary Fund Contributed Capital during the year were (in
thousands):
Enterprise Internal Service Total
Funds Funds
i Balance October 1, 1995 $ 41,100 $ 18,026 $ 59,126
f
Additions-Developer/City 2,097 543 2,640
Contributions
Balance-September 30, 1995 $ 43,197 18,569 $ 61,766
34
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
11. PROPRIETARY FUND SEGMENT INFORMATION (CONTINUED):
b.Contributed Capital:
At year end the balances of Contributed Capital consisted of(in thousands):
Enterprise Funds: Year-End
Balance
Water Utility $ 38,324
Meadowlark Golf Course 1,267
Emerald Cove Housing 1,287
Emergency Fire Medical 311
Cultural Affairs 2,008 -
Total Enterprise Funds 43,197
Internal Service Fund:
Equipment Replacement 18,569
Total $ 61,766
12. GENERAL LONG-TERM DEBT:
The changes in general long-term debt during the year were (in thousands):
October 1,1994 Additions Retirements September 30,
19%
1970 Park Bonds $ 445 $ - $ (445) $ -
Public Facilities Corporation 1,085 - (340) 745
Leasehold Mortgage Bonds
Civic Improvement Corporation 20,965 - (B40) 20,425
Refunding Certificates of
Participation(Civic Center)-
1993
Civic Improvement Corporation 15,705 - (330) 15,375
Refunding Certificates of
Participation(Police
Administration Building)-
1993
Compensated Absences 5,032 1,265 (1,444) 4,853
Advances from Other Funds 119,248 6,086 (53.550) 71,784
1992 Public Financing Authority 32,715 - (430) 32,285
Revenue Bonds
Notes Payable 711 - (57) 654
Leases Payable 11B - (19) 99
Reservoir Hill Assessment 1,305 - (50) 1,255
Bonds
Total $197,329 $7,351 ($57,205) $147,475
35
CITY OF HUNTINGTON BEACH
, f
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
t �
j 12. GENERAL LONG-TERM DEBT (CONTINUED):
� Y
' Below are reconciliations from amounts in the above table to amounts in the
accompanying general purpose financial statements:
Proceeds of Long-Term Debt $ 5,324
Increases in Compensated Absences 1,265
Accrued Interest on Interfund Advances 762
Total Increases in General Long-Term Debt $ 7,351
It
Total Reductions in General Long-Term Debt $ 57,205
Less Payments for Compensated Absences (1,444)
s Less Reclassifications of Advances from
Redevelopment Agency (52,250)
r ` Interest Paid on Interfund Advances (316)
t I Principal Paid on General Long-Term Debt $ 3,195
Ej
a. 1970 Park Bonds:
Year of Issuance 1970
-� Ty pe of Debt General Obligation Bonds
Security Property Taxes
original Issuance Amount $6,000,000
_ Interest Rates 6%
Interest Payment Dates March 1st, Se tember 1st
Principal Payment Dates March 1st
Purpose Financing of Central Park
improvements
During the year the bonds were retired.
� I
l
36
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED):
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%
Interest Payment Dates March 1st and September 1st
Principal Payment Dates September 1st
Purpose of Debt Finance Libra construction
Debt service requirements to maturity are (in thousands):
Fiscal Year Principal Interest Total
Ending
September 30,
1996 $ 360 $ 36 $ 396
1997 385 18 403
Totals $ 745 $ 54 $ 799
c. 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 August 1st
Principal Payment Dates August 1st
Purpose of Debt Refinance 1986 Civic
Improvement Corporation
Certificates of Participation
37
CITY F
O HUNTI T NG ON BEACH
NOTES TO FINANCIAL STATEMENTS
FI
SCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED);
f 1
S
r
c. 1993 Huntington Beach Civic improvement Corporation Refunding Certificates of
Participation (Civic Center Project):
I
Year Ending Principal Interest Total
r-4 September 30,
s 1996 $ 560 $ 1,100 $ 1,660
1997 585 1,077 1,662
1998 610 1,050 1,660
r a 1999 640 1,022 1,662
i
2000 670 990 1,660
l 2000-2016 17,360 10,212 27,572
Total $20,425 $ 15,451 $ 35,876
d. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of
Participation (Police Administration Project):
E Year of Issuance 1993
Type of Debt Refunding Certificates of
Participation
Security Lease on Civic Buildings
s Original Issuance Amount $16,350,000
Interest Rates 4.0%to 5.7%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Dent Refinance 1989 Civic
Improvements Corporation
Certificates of Participation
r i Debt service requirements to maturity are (in thousands):
{ Year Ending Principal Interest Total
September 30,
1996 $ 340 $ 826 $ 1,166
1997 355 811 1,166
1998 370 795 1,165
1999 385 769 1,154
( � 2000 405 758 1,163
!� 2001 and after 13,520 8,596 22,116
Total $ 15,375 $ 12,555 $ 27,930
� l
t 38
t_�
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED):
e. Compensated Absences Payable:
There is no fixed payment schedule to pay the governmental fund liability of$4,853,000
for compensated absences through September 30, 1995.
f. 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. Below is analysis of this amount at year-end (in thousands):
GENERAL FUND.
Direct Advances from 1979 to 1987 $ 7,291
Direct Cash Advances from Proceeds of 1988 4,445
Public Financing Authority Revenue Bonds Repaid
to General Fund
Indirect Advances from 1987 to 1995 6,849
Land Sales from 1982 to 1992 32,833
Transfer of Project Responsibility 5,000
Interest on Above Amounts 25,594
Total Debt 82,012
Less Estimated Uncollectible Amounts (52,260)
TOTAL GENERAL FUND 29,752
SPECIAL REVENUE FUNDS:
Park Acquisition and Development Fund:
Land Sale in 1993 1,741
Deferred Development Fees 248
Interest on Above Amounts 1,125
Total Advances from Park Acquisition and 3,114
Development Fund
Sewer Fund:
Advance 1990191 130
Deferred Development Fees 38
Interest on Above Amounts 56
Total Advances from Sewer Fund 224
Drainage Fund:
Advance 1987/88 250
Deferred Development Fees 54
Interest on Above Amounts 120
Total Advances from Drainage Fund 424
39
CITY OF HUNTINGTON BEACH
t
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
F
12. GENERAL LONG-TERM DEBT (CONTINUED):
f. Long-Term Advances from Other Funds:
Gas Tax Fund:
Advance in 1988/89 500
Interest on Above Amounts 376
Total Advances from Gas Tax Fund 876
TOTAL SPECIAL REVENUE FUNDS 4,638
CAPITAL PROJECTS FUNDS:
Capital Improvement Fund:
Advance in 1989190 200
Interest on Above Amounts 119
Total Capital Improvement Fund 319
Parking Authority:
Advance in 1991/92 100
- Interest on Above Amounts 34
Total Advances from Capital Improvement Fund 134
Fund-Low-Income Housing
Advances for Educational Revenue Augmentation 731
Fund
Advances to Redevelopment Capital Projects Fund 1,363
j Total Low-Income Housing Fund 2,094
TOTAL CAPITAL PROJECTS FUNDS 2,547
DEBT SERVICE FUNDS:
Public Financing Authority:
Advances from 1991192 29,563
ENTERPRISE FUNDS:
Water Fund;
Advances from 1986/87 to 1988/89 1,138
Interest on Above Amounts 929
Total Advances from Water Fund 2,067
TOTAL ENTERPRISE FUNDS 2,067
TOTAL AGENCY ADVANCES 68,567
NON AGENCY ADVANCES
Advances from Water Fund to Pier Rebuilding 2,500
Fund
Interest on Above Advances 717
TOTAL NON-AGENCY ADVANCES 3,217
TOTAL ADVANCES FROM OTHER FUNDS $ 71,784
U
40
j
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED):
f. Long-Term Advances from Other Funds:
A summary of the changes in governmental fund long-term debt due from other funds
for the fiscal year ending September 30, 1995 follows (in thousands):
Advances, October 1, 1994 $ 119,248
Advances Made 5,324
Reclassifications of Advances (52,250)
Advances Repaid (1,300)
Accrued Interest Reported in Other Funds as 762
Deferred Revenue
Advances , September 30, 1995 $ 71,784
g. Public Financing Authority Revenue Bonds:
Year of Issuance 1992
Type of Debt Revenue Bonds
Security Loan Agreements with
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 August 1 st
Purpose of Debt Provide funds to amend
agreements with Robert Mayer
Corporation. Remove
restrictive covenants on, and
refinance 1988 Public
Financing Authority Revenue
Bonds_
4I
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CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED):
g.Public Financing Authority Revenue Bonds:
Debt service requirements to maturity are (in thousands):
s Year Ending Principal Interest Total
September 30,
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 560 2,115 2,675
> 2001 and after 29,770 29,736 59,506
s Total $ 32,285 $ 40,615 $ 72,900
i ,
h. Miscellaneous Notes Payable:
Mortgages in Main/Pier 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 monthly
Principal Payment Dates monthly
l-p Purpose of Debt Purchase of property
4
Debt service requirements to maturity are (in thousands):
y
Year Ending Principal Interest Total
September
30,
1996 $ 52 $ 60 $ 112
1997 52 55 107
1998 52 50 102
1999 52 45 97
2000 52 47 99
j 2001 and 394 175 569
(; after
Totals $ 654 $ 432 $ 1,086
42
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A
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED):
i. Leases Payable Camera/Truck:
Year of Issuance 1993
Type of Debt Ca ital Lease
Security Lease A reement
Original Issuance Amount $148,000
Interest Rates 5.8%
Interest Payment Dates February 1st and August
1st
Principal Payment Dates February 1st and August
1st -
Pu ose of Debt Purchase of Truck
Debt service requirements to maturity are as follows(in thousands):
Year Ending September 30, Total
Payment
1996 $ 25
1997 25
1998 25
1999 25
2000 12
-------------
Total Minimum Lease 112
Payments
Less Interest 13
Total Present Value of Future $ 99
Minimum Lease Payments
j, Reservoir Hill Assessment Bonds:
Year of Issuance 1989
Type of Debt 1915 Improvement Act
Assessment Bonds
Security Property tax assessments
Original Issuance Amount $1,653,905
Interest Rates 6.5%to 8.1%
Interest Payment Dates March 2nd and September 2nd
Principal Payment Dates Se ember 2nd
Pu ose of Debt Capital improvements
43
r ;
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
12. GENERAL LONG-TERM DEBT (CONTINUED):
j. Reservoir Hill Assessment Bonds:
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September 30,
1996 $ 55 $ 101 $ 156
1997 55 96 151
`- 1998 55 92 147
1999 60 87 147
2000 65 83 148
i 2001 and after 965 434 1,399
Total $ 1,255 $ 893 $ 2,148
s --
% t
f ,
13. PROPRIETARY FUND LONG-TERM DEBT:
11
Below is a summary of changes in proprietary fund long-term debt (including current
( , portion of$1,537,000)for the year(in thousands):
f October 1, Additions Retirements September 30,
1994 1995
Meadowlark Golf Course Note $ 1,521 $ - $ (1,521} $ -
[ 1991 Emerald Cove Certificates of 5,555 - (80) 5,475
i Participation
Compensated Absences 356 - (79) 277
Advances from Other Funds 243 - - 243
p leases Payable 627 (115) 512
Claims Payable 10,860 6,645 (6,239) 11,266
F Public Financing Authority Certificates 2,425 - (1,170) 1,255
of Participation
Total __ $-_21,587 $ �6.645 $ (9,204) _$ 19,028
it
:E
ft
` 1
e l 44
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
t
13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED):
The above total is reported in the accompanying financial statements as follows (ire
thousands):
Enterprise Internal Service Total
Funds Funds
Advances from Other $ 243 $ - $ 243
Funds
Current Portion of Long- 85 1,452 1,537
Term Debt
Long-Term Debt 5.390 - 5,390
Leases Payable - 315 315
Claims Payable - 11,266 11,266
Compensated Absences 246 31 277
Total $ 5,964 $ 13,064 $ 19,028
a. Meadowlark Golf Course Note Payable:
Year of Issuance 1974
T of Debt Note payable
Security Revenues of Meadowlark Golf
Course
Original 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
During the year the note was paid in full.
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
Com lex
Ori inal 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
r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
F ,
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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,
1996 $ 85 $ 375 $ 460
1997 85 375 460
1998 90 369 459
1999 95 364 459
2000 100 359 459
2001 and after 5,020 4,631 9,651 -
Total $ 5,475 $ 6,473 $ 11,948
a.
c. Compensated Absences:
There is no fixed repayment schedule to pay the compensated absences for proprietary
fund types of$277,000 at year-end,
t9
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$243,000 at year-end.
1 e. Claims Payable:
f `
There is no fixed repayment schedule for estimated claims payable of $11,266,000 at
r year-end (see note 9). The City will pay the claims when it reaches final settlements on
outstanding litigation.
r �
f. Leases Payable:
is
i The City entered into capital leases for a helicopter, sewer truck, and camera truck.
s ,
Year of Issuance 1993 through 1995
' Type of Debt Capital Lease
' Security Lease A reement
Original Amount $986,000
Interest Amount 6.1%
{-i Interest Payment Dates August 1st, February 1st
Principal Payment Dates August 1st, Februar
y 1st
Pu ose of Debt A uire Equipment
L.l
r 46
L4
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED):
f. Leases Payable:
The future minimum required lease payments are (in thousands)
Year Ending September 30, Total Payment
1996 $ 256
1997 256
1998 22
1999 22
2000 7
Total Minimum Lease Payments 563
Less Interest (51)
Total Present Value of Future $ 512
Minimum Lease Payments
g. Public Financing Authority Certificates of Participation:
Year of Issuance 1989
_Type of Debt Certificates of Participation
Security Lease With City on Equipment
Original Issuance Amount $5,510,000
Interest Rates 6.75%to 6.95%
Interest Payment Dates February 1st and August 1st.
Principal Payment Dates February 1st
Purpose of Debt Purchase Communications
System
Debt service requirements to maturity are (in thousands):
R
Year Ending Principal Interest Total
September
30,
1996 $ 1.255 $ 07 $ 1.342
s
i
47
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS:
a. Defeased Debt Outstanding:
At year-end the following long-term, defeased debt outstanding was not recorded in the
financial statements:
Public Facilities Corporation 1972 $1,595,000
Leasehold Mortgage Bonds
Public Financing Authority 1988 24,605,000
Lease Revenue Bonds
7Civic Improvement Corporation 1986 17,655,000
Certificates of Participation
Civic Improvement Corporation 1989
r13,870,0001
Certificates of Participation
b. Community Facilities District 1990/91 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 T.60%
Interest Payment Dates A ril 1 st and October 1 st
Principal Pa ment Dates October 1 st
Purpose of Debt Public improvements and
police and fire services
L I
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,
1996 $ 30 $ 174 $ 204
1997 30 171 201
1998 , 30 169 199
1999 40 167 207
2000 40 164 204
2001 and after 2,145 2,133 4,278
Total $ 2,315 $ 2,978 $ 5,293
48
}
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, '1995
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS
(CONTINUED):
c,Other"No-Commitment" 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. Only the original issue amount is readily available.
These bond issues are:
Original Issue
Bond issue Amount
Five Points Senior Project Multi-
Family Housing Revenue
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 Bonds1985 Series A 10,000,000
Huntington Breakers Mortgage
Revenue Bonds Refunding
Issue- 1989 16,000,000
Huntington Breakers Mortgage
Revenue Bonds-Original
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
49
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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,
October 1, September
1994 30, 1995
Land $ 66,430 737 $ (759) $ 66,408
Buildings 59,310 17
59,327
Other 2,007 2,007
f Construction in 3,747 904 (1,512) 3,139
Process
Joint Ventures 757 142 (47) 852
Total $ 132,251 $ 1,800 $ (2,318) $ 131,733
The changes in proprietary fund fixed assets for the year are (in thousands):
ENTERPRISE Balance,. Additions Dispositions Balance,
FUNDS: October 1, 1994 September
30, 1995
Land $ 4,732 $ 758 $ 5,490
Buildings 6,811 11404 8,215
Construction in Process 2,673 2,849 5,522
Machinery and Equipment 54,191 98 (66) 54,223
Total Cost 68,407 6,109 (66) 73,450
Less Accumulated (29,192) (30,641)
Depreciation
Net Book Value Enterprise $ 39,215 $ 42,809
Funds
INTERNAL Balance, October Additions Dispositions Balance,
SERVICE 1, 1994 September 30,
[A FUNDS: 1995
Machinery and Equipment $ 32,763 $ 2,154 $ (1,211) $ 33,706
Less Accumulated (20,195) (21,834)
Depreciation
Net Book Value Internal $ 12,568 $ 11,872
Service Funds
50
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
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 (in
thousands):
Machinery and Equipment $986 -
Less Accumulated
Depreciation 2( 95)
Carrying Value1
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 general 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
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):
51
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
16. RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED):
Governmental Funds., General Fund Special Revenue Debt Service Capital Projects Total
Funds Funds Funds
Reservations:
Encumbrances $ 1,404 $ 2,239 4,566 $ 8,209
Long-Term Receivables-Orange County 846 1,833 795 2,o40 5,514
Bankruptcy
Long-Term Receivables from Other Funds 23.587 870 29,563 2,194 56,214
Capital Projects - - 2,206 2,206
Debt Service 10,069 - 10,069
Land Held for Resale - - 16,604 16,604
Inventory 310 - 310
Total Reserved Fund Equity 26,147 4,942 40,427 27,610 99,126
Designated for Future Expenditures - 1,412 - 1,546 2,955
Total Reserved and Designated Fund $ M147 $ 6,354 $ 40,427 $ 29,156 $ 102,084
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. 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 $300,000 remained to be loaned.
7
it
c. Driftwood Mobilehome Acquisition and Relocation Agreement:
In 1988 the Redevelopment Agency made an agreement with Robert Mayer Corporation
and a private mobilehomeowers 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,
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-
t 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.
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
17. COMMITMENTS AND CONTINGENCIES (CONTINUED):
c. Driftwood Mobilehome Acquisition and Relocation Agreement:
On November 1, 1994, (the last adjustment date) the average adjusted value was
$70,109 per mobilehome. After each home is purchased, the Agency markets the
coaches for 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$820,662 for purchase and relocation benefits.
d. 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 totaled
$381,000.
f. 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 $3,126,000 (which have
been reported as expenditures) for 15 years at 7% interest to make building
improvements. At year-end the balance of the loan was$3,086,000.
g. Townsquare Commercial Loan:
During the year the Redevelopment Agency and the Resolution Trust Corporation (RTC)
sold the interest in the Townsquare development for $820,000. The Agency/RTC
financed $779,000 with a note and deed of trust. The Agency is servicing the loan and
20.8%, or approximately $162,000 of the sale proceeds will be kept by the Agency. The
remainder will be forwarded to RTC as the note is paid. The revenue is being
recognized when received.
53
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
18. JOINT VENTURES:
The City is involved in five joint ventures that are recorded as investments in joint
ventures in the accompanying financial statements as follows:
r T
Orange County-City Hazardous Materials $ 10
Emergency Response Authority
Central Net Operations Authority 312
Public Cable Television Authority 530
Total General Fixed Asset Account Group: 852
Big Independent Cities Excess Pool Joint Authority 419
(Proprietary Fund)
Total Reported in Accompanying Financial 1,271
Statements
Reported as Part of Water Fund Cash
West Orange County Water Board 299
Total Joint Ventures $ 1,570
a. Orange County-City Hazardous Materials Emergency Response Authority:
rT
The City also participates in the Orange County-City Hazardous Materials Emergency
Response Authority (Hazmat Authority). The Hazmat Authority coordinates responses to
f 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.
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%
f
ri
Separate audited financial statements are available for this agency from the Hazmat
Authority.
54
.. .... ................. .. .... .............
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
18. JOINT VENTURES (CONTINUED?:
b. 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:
Agency Percent
Huntington Beach 43.1%
Newport Beach 23.3%
Fountain Valley 11.9%
Westminster 21.7%
Total 100.4%
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.
The financial activity for Central Net Operations Authority is recorded in an Agency
Fund. Separate, audited financial statements for CNOA are available from this office.
55
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
•. F
18. JOINT VENTURES (CONTINUED):
c. 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
f ' share of the PCTA are:
L` City of Huntington Beach 62.6%
City of Stanton 5.9%
s I City of Fountain Valley 15.9%
City of.Westminster 15.6% -
Total 10
The City's equity interest is recorded in the general fixed assets account group.
Separate audited financial statements are available from PCTA.
d. Big Independent Cities Excess Pool Joint Authority:
In 1988, the City and the cities of Pomona, San Bernardino, Santa Ana and Oxnard
i formed the Big Independent Cities Excess Pool Joint Authority (BICEP) to finance a
claims payment pool for certain liability claims in excess of$1 million.
I
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
t 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:
( I Percent
(� Huntington Beach 21 AM
Oxnard 15.63%
} San Bernardino 19.09%
Santa Ana 30.27%
Pomona 13.59%
Total }00.00�10
T
�.i
f 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 audited financial statements
ii for the fiscal year ending June 30, 1995 are available from BICEP.
t.�
56
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
18. JOINT VENTURES (CONTINUED):
e.West Orange County Water Board:
The City is involved in ajoint-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
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 part of the Water 1=und'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:
Percent
City of Huntington Beach 52.5%
City of Garden Grove 7.8%
City of Seal Beach 14.3%
City of Westminster 25.4%
Total oo.oflio
Separate audited financial statements for .tune 30, 1995 are available for this agency
from the City of Huntington Beach Administrative Services Department.
19. OTHER INFORMATION:
a. Expenditures Exceeding Appropriations
Expenditures exceeded appropriations at the departmental level in the funds shown as
follows (in thousands):
57
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
19. OTHER INFORMATION (CONTINUED):
Amount
Expenditures
Exceed
Appropriations
General Fund:
Library Services $16
Non-Departmental 412
Special Revenue Funds:
Drainage- Public Works 2
Traffic Impact Fee- Public Works 2
Debt Service Funds:
Redevelopment Agency
Non-De2artmental 65
Operating Transfers Out 147
Public Financing Authority
Principal 35
Interest
Civic Improvement Corporation
Principal 135
b. Fund and Retained Earnings Deficits:
tT
The following governmental funds had total fund deficits at year-end (in thousands):
Special Revenue Funds:
f T Library Services $595
This deficit Will be eliminated through increased development and fees.
1A
58
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
19. OTHER INFORMATION:
b.Fund and Retained Earnings Deficits:
The following proprietary funds had deficit retained earnings at year-end (in thousands):
Enterprise Funds:
Emerald Cove $202
Refuse Collection 22
Cultural Affairs 256
Internal Service Funds:
Self-insurance 8,477
Equipment Replacement 4,086
Trust and Agency Funds:
Retirement Supplement 289
The deficits in the Emerald Cove and Refuse Collection Funds will be eliminated through
increased rents and user charges. The deficit in the Cultural Affairs Fund will be
eliminated through increased donations. The deficit in the Self-Insurance Fund will be
eliminated by increasing charges to other funds. The deficit in the Equipment
Replacement Fund is mainly caused by the City's accounting methodology for
contributed capital. The deficit in the Retirement Supplement Fund will be eliminated
with increased charges to user departments.
c.Supplemental Appropriations:
During the year various supplemental appropriations were necessary for items that were
originally budgeted. None of the supplemental appropriations caused fund deficits except
for those shown in note 19(b).
20. COUNTY OF ORANGE BANKRUPTCY:
In December, 1994, the County of Orange declared bankruptcy under Chapter 9 of the
United States Bankruptcy Code because of significant losses in its investment pool. At
the time of the filing of the bankruptcy, the City had on deposit $43,599,000 of its cash
and investments with the County. This represented approximately 43% of the City's
portfolio.
59
r .
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
20. COUNTY OF ORANGE BANKRUPTCY (CONTINUED):
f i
The City and other pool participants reached agreement with the County on distribution
of frozen pool assets in May, 1995. The City received 80% of its December, 1994
deposits ($33,972,000) back with claims for the remaining deposits totaling $9,627,000.
This claim cannot be paid, except from litigation proceeds from third parties, until:
• all recovery notes, settlement secured claims, administrative and other priority
claims against the County of Orange, and bonds of the County of Orange are paid in
full.
• the claims of the County's vendors are paid in full.
• certain County administered accounts are restored to 89% of their original
f investment.
These amounts are reserved in governmental fund balances as long-term receivables
f and are offset in proprietary funds by an allowance for uncollectible accounts. This
amount is recorded in the accompanying financial statements as follows(in thousands):
Governmental Funds:
General Fund $ 846
1 Special Revenue Funds:
Gas Tax 336
` s Sewer 630
f
i Drainage 312
Public Communications 13
I ;
Park Acquisition and Development 35
I Transportation 457
Air Quality 3
t Traffic Impact Fee 47
[-f Total Special Revenue Funds 1,833
Debt Service Funds:
1970 Park Bonds 98
Redevelopment Agency 661
Public Financing Authority 22
Reservior Hill Assessment District 14
Total Debt Service Funds 795
S� IS
[.t
f F
1 i
60
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDING SEPTEMBER 30, 1995
20. COUNTY OF ORANGE BANKRUPTCY(CONTINUED):
Capital Projects Funds:
Parking Structure 410
Redevelopment Agency 674
Low-income Housing 303
Library Expansion 48
Parking Authority 102
Capital Improvement Fund 94
Pier Rebuilding Fund 404
Holly Seacliffe 5
Total Capital Projects Funds 2,040
Total Governmental Funds 5,514
Proprietary Fund Types:
Enterprise Funds:
Water Utility 1,648
Meadowlark Golf Course 374
Emerald Cove Housing .322
Refuse Collection 6
Total Enterprise Funds 2,351
Intemal Service Funds:
Self-insurance 337
Equipment Replacement 896
Total Internal Service Funds 1,233
Total Proprietary Fund Types 3,584
Trust and Agency Funds:
Retiree Medical Insurance 463
Central-Net Operations Authority 66
Total Trust and Agency Funds 529
Total Claims 9,627
21. SUBSEQUENT EVENTS -TAX AND REVENUE ANTICIPATION NOTES:
In October, 1995 the City issued $19,000,000 of Tax and Revenue Anticipation Notes
bearing interest at 4.75% maturing on September 30, 1996.
61
li
is
FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS AND ACCOUNT
GROUPS
THIS PAGE LEFT BLANK INTENTIONALLY
r
The GENERAL FUND accounts for activity not required to be
accounted for in another fund
� E
r .
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3.
F 1
F '
C s
F T
1
� 1
F
f
i 1
L�
City of Huntington Beach
General Fund
Balance Sheet
September 30, 1995
(In Thousands)
ASSETS AND OTHER DEBITS Total
Taxes Receivable $ 10,306
Other Receivables 1,853
Receivables,Orange County Investment Pool 846
Due from Other Funds 116
Inventory 310
Advances to Other Funds 29,752
Deposits and Other Assets 91
TOTAL ASSETS AND OTHER DEBITS $ 43,274
LIABILITIES,FUND EQUITY AND OTHER CREDITS
LIABILITIES:
Accounts Payable $ 1,791
Other Accrued Liabilities 1,227
Deposits 80 -
Due to Other Funds 4,588
Deferred Taxes 6,425
Other Deferred Revenue 6,198
TOTAL LIABILIITES 20,309
FUND EQUITY AND OTHER CREDITS:
Reserved:
Reserved for Inventory 310
Reserved for Encumbrances 1,404
Reserved for Long-Term Receivables-Orange County Bankruptcy 846
Reserved for Long Term Receivables from Other Funds 23,587
Total Reserved Fund Equity 26,147
Unreserved:
Undesignated (3,182)
TOTAL FUND EQUITY 22,965
TOTAL LIABILITIES AND FUND EQUITY $ 43,274
Page 62
I �
CITY OF HUNTINGTON BEACH
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
BUDGET AND ACTUAL
;k (IN THOUSANDS)
Variance
REVENUES: Budget Actual Favorable
Property Taxes $ 25,631 $25,265 $ (366)
Other Taxes 36,210 36,440 230
Licenses and Permits 4,497 3,782 (715)
} Fines, Forfeitures and Penalties 2,059 2,134 75
From Use of Money and Property 6,905 5,383 (1,522)
` From Other Agencies 7,780 8,460 680
r r
Charges for Current Service 8,852 8,595 (257)
Other 607 631 24
TOTAL REVENUES 92,541 90,690 (1,851)
EXPENDITURES:
Current: -
L City Council 243 224 19 _
City Administrator 957 834 123
City Treasurer 725 709 16
City Attorney 1,972 1,866 106
` City Clerk 485 485 -
Administrative Services 4,200 4,200 -
Community Development 3,470 3252 218
i a Fire 15,991 15,301 690
Police 31,842 31,814 28
` Community Services 6,998 6,681 317
Library Services . 2,645 2,661 (16)
Public Works 15,706 14,847 859
I Non-Departmental 8,462 8,874 (412)
I ` Capital Outlay 400 97 303
t >
Debt Service:
Principal 18 18 -
Interest 608 604 4
i TOTAL EXPENDITURES 94,722 92,467 2,255
EXCESS OF REVENUES (UNDER)EXPENDITURES (2,181) (1,777) 404
i OTHER FINANCING SOURCES(USES):
Operating Transfers In 12,821 12,833 12
Operating Transfers Out (3,725) (3,725) -
TOTAL OTHER FINANCING SOURCES 9,096 9,108 i2
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES 6,915 7,331 416
FUND BALANCE, BEGINNING OF YEAR 15,634 15,634 -
FUND BALANCE-END OF YEAR $ 22,549 $22,965 $ 832
I
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Page 63
f
4
THIS PAGE LEFT BLANK INTENTIONALLY
f
a
SPECIAL REVENUE FUNDS account for revenues and
expenditures legally restricted to a specific purpose.
+ 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.
• 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 Acquisition 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.
f a. 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
r fee levied on new developments in the cities.
• The Fourth of July Parade Fund accounts for the activities of the City's annual
f parade.
f
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!_F
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1996
(IN THOUSANDS)
Public
ASSETS AND OTHER DEBITS: Gas Tax Sewer Drainage Communications
Cash and Investments $ 917 $ 2,891 $ 1,504 $ 11
Receivables-O.C.I.P. 336 630 312 13
Other Receivables 276 66 31 75
Advances to Other Funds 876 224 424 -
Deposits and Other Assets - - - -
TOTAL ASSETS AND OTHER DEBITS $ 2,405 $ 3,811 $ 2,271 $ 99
LIABILITIES,FUND EQUITY AND OTHER CREDITS
LIABILITIES:
Accounts Payable $ 99 $ 24 $ 3 $ 1
Other Accrued Liabilities 12 2 - 6
Deposits - - - -
Due to Other Funds - - - -
Deferred Revenue 376 105 182 -
TOTAL LIABILIITES 487 131 185 7
FUND EQUITY:
Reserved Equity:
Reserved for Encumbrances 537 694 109 3
Reserved for Long Term Receivables-Orange County Bankruptcy 336 630 312 13
Reserved for Long-Term Receivables from Other Funds 500 120 250 -
Total Reserved Fund Equity 1,373 1,444 671 16
Unreserved Equity:
Designated for Future Expenditures - 363 883 -
Undesignated 545 1,873 532 76
Total Unreserved Fund Equity(Deficits) 545 2,236 1,415 76
TOTAL.FUND EQUITY(DEFICITS) 1,918 3,680 2,086 92
TOTAL LIABILITIES AND FUND EQUITY $ 2,405 $ 3,811 $ 2,271 $ 99
Page 64
Park
Acquisition Traffic Fourth of Library
? and Narcotics Air Impact July Services Economic
Grants Development Forfeiture Transportation Quality Fee Parade Fund Uncertainties Total
$ - $ 167 $ 126 $ 1,885 $ 183 $ 352 $ 57 $ - $ - $ 8,093
35 - 457 3 47 - - - 1,833
s 979 113 5 798 - 8 2 2 - 2,355
- 3,357 - - - - - - - 4,881
- 4,479 - - - - - - - 4,479
$ 979 $ 8,151 $ 131 $ 3,140 $ 186 $ 407 $ 59 $ 2 $ - $21,641
ri
$ 10 $ - $ 2 $ 27 $ 5 $ 2 $ 30 $ 62 $ - $ 265
r 12 2 11 7 - - - 2 - 54
- - 105 - - - - - - 105
329 - - - - - 533 - 862 _
- 7,835 - - - - - - - 8,498
t , 351 7,837 118 34 5 2 30 597 - 9,784
t
352 111 - 411 20 - 2 - - 2,239
E _ - 35 - 457 3 47 - - - 1,833
-_ - - __ - - - - - - 870
t 352 146 - 868 23 47 2 - - 4,942
- 140 13 - 13 - - - - 1,412
276 28 - 2,238 145 358 27 (595) - 5,503
a 276 168 13 2,238 158 358 27 (595) - 6,915
628 314 13 3,106 181 405 29 (595) - 11,857
$ 979 $ 8,151 $ 131 $ 3,140 $ 186 $ 407 $ 59 $ 2 $ - $21,641
It
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i Page 65
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES(DEFICITS)
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
Public
REVENUES: Gras Tax Sewer Drainage Communications
Other Taxes $ - $ - $ - $ -
Licenses and Permits - 50 307 From Use of Money and Property 30 164 197 -
From Other Agencies 4,359 - 36 374
Charges for Current Service 7 14 - -
Other 3 - - 46
TOTAL REVENUES 4,399 226 540 420
EXPENDITURES:
Current:
City Council
City Administrator - - - 344
Fire - - - -
Police - - - - -
Economic Development - - - -
Community Services - - - -
Library Services - - - -
Public Works 586 157 163 -
Non-Departmental 56 152 113 196
Capital Outlay 4,031 536 356 -
TOTAL EXPENDITURES 4,673 845 632 540
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (274) (617) (92) (120)
OTHER FINANCING SOURCES(USES):
Operating Transfers in 1,594 - - -
Operating Transfers Out _(2,183) - - -
TOTAL OTHER FINANCING SOURCES(USES) (589) - - -
EXCESS OF REVENUE OVER (UNDER)EXPENDITURES AND OTHER USES (863) (617) (92) (120)
FUND BALANCES(DEFICITS)-BEGINNING OF YEAR 2,781 4,297 2,178 212
FUND BALANCES(DEFICITS)-END OF YEAR $ 1,918 $ 3,680 $ 2,086 $ 92
t
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Page 66
Park
Acquisition Traffic Fourth of Library
and Narcotics Air Impact July Services Economic
Grants Development Forfeiture Transportation Quality Fee Parade Fund Uncertainties Total
$ $ - $ $ 1,326 $ - $ - $ $ $ $ 1,326
- 1,436 - - 354 2,147
684 10 107 4 20 i 115
1,332
3,295 659 428 1,259 210 - -
10,620
90
20 77 - - - - 1" 31 321
3,999 2.182 428 2,692 214 374 145 236 15,857
427 67 838
3 3
207 774 981
945 - - - 945
15 150 185 - - 350
is 93 - - 167 - 260
212 - 518 191 1.827
- 2 is 2 - - 539
1,171 1,829 - 278 - - - 3 - 8,204
3,073 1,981 774 814 67 193 185 170 - 13,947
926 201 (346) 1,878 147 181 (40) 66 - 1,910
28 - - - 57 1,679
(228) (178) (1,597) (10) - (718) (5,9_00 (9.957)
(15) (228) (178) (1,597) (10) - - (661) (5,000) (8,278)
911 (27) (524) 281 137 181 (40) (595) (5,000) (6.368)
(283) 341 537 2,825 44 224 69 - 5,000 18,225
628 314 13 3,106 181 405 29 (595) $ - $11,857
11
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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 FISCAL YEAR ENDING SEPTEMBER 30,1995
(in Thousands)
GAS TAX
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $ 200 $ 3D (170)
From Other Agencies 4,302 4,359 57
Charges for Current Service - 7 7
Other - 3 3
TOTAL REVENUES 4,502 4,399 (103)
EXPENDITURES:
Current: -
Public Works 850 586 264
Nora-Departmental 56 56 -
capital Outlay 5,174 4,031 1,143
TOTAL EXPENDITURES 6,080 4,673 1,407 -
EXCESS OF REVENUES(UNDER)EXPENDITURES (1,578) (274) 1,304
OTHER FINANCING SOURCES(USES):
Operating Transfers In 1,594 1,594 -
Operating Transfers Out (2,183) (2,183) -
TOTAL OTHER FINANCING USES (589) (589) -
EXCESS OF REVENUE AND OTHER SOURCES (UNDER)
EXPENDITURES AND OTHER USES (2,167) (863) 1,304
FUND BALANCE-BEGINNING OF YEAR 2,781 2,781 -
FUND BALANCE-END OF YEAR $614 $1,918 $1,304
SEWER
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $ 6D $ 50 $ (10)
From Use of Money and Property 280 164 (116)
Charges for Current Service - 14 14
TOTAL REVENUES 340 228 (112)
EXPENDITURES:
Current: -
Public Works 157 157 -
Non-Departmental 152 152 -
Capital Outlay 1,409 536 873
TOTAL EXPENDITURES 1,718 845 873
EXCESS OF REVENUES (UNDER)EXPENDITURES (1,378) (617) 761
FUND BALANCE-BEGINNING OF YEAR 4,297 4,297 -
FUND BALANCE-END OF YEAR $ 2,919 $ 3,680 $ 761
Page 68
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending September 30,1995
(Continued)
(in Thousands)
DRAINAGE
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $ 350 $ 307 $ (43)
From Use of Money and Property 150 197 47
From Other Agencies - 36 36
TOTAL REVENUES 500 540 40
EXPENDITURES:
Current:
Public Works 161 163 (2)
Non-Departmental 113 113 -
Capital Outlay 1,380 356 1,024
TOTAL EXPENDITURES 1,654 632 1,022
EXCESS OF REVENUES (UNDER)EXPENDITURES (1,154) (92) 1,062
FUND BALANCE-BEGINNING OF YEAR 2,178 2,178 -
FUND BALANCE-END OF YEAR 1.024 $ 2,086 $ 1,062
PUBLIC COMMUNICATIONS
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $ 25 $ - $ (25)
From Other Agencies 400 374 (26)
Other 102 46 (56)
TOTAL REVENUES 527 420 (107)
EXPENDITURES:
Current:
City Administrator 346 344 2
Non-Departmental 196 196 -
f TOTAL EXPENDITURES 542 540 2
EXCESS OF REVENUES(UNDER)EXPENDITURES (15) (120) (105)
FUND BALANCE-BEGINNING OF YEAR 212 212 -
FUND BALANCE-END OF YEAR $197 $92 ($1105)
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Page 69
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending September 30,1995
(Continued)
(in Thousands)
GRANTS
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $ 455 $ 684 $ 229
From Other Agencies 5,323 3,295 (2,028)
Other 17 20 3
TOTAL REVENUES 5,795 3,999 (1,796)
EXPENDITURES:
Current:
City Administrator 1,048 427 621
Fire 21 3 18
Police 251 207 44 _
Economic Development 2,948 945 2,003
Community Services 30 15 15
Library Services 98 93 5
Public works 366 212 154
Capital Outlay 3,939 1,171 2,768
TOTAL EXPENDITURES 8,701 3,073 5,628
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,906) 926 3,832
OTHER FINANCING SOURCES(USES):
Operating Transfers In 118 28 (90)
Operating Transfers Out (158) (43) 115
TOTAL OTHER FINANCING USES (40) (15) 25
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)
EXPENDITURES AND OTHER USES (2,946) 911 3,857
FUND(DEFICIT)-BEGINNING OF YEAR (283) (283)
FUND BALANCE(DEFICIT)-END OF YEAR ($3,229) $628 $3,857
PARK ACQUISITION AND DEVELOPMENT
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $ 1,595 $ 1,436 $ (159)
From Use of Money and Property 25 10 (15)
From Other Agencies 697 659 (38)
Other - 77 77
TOTAL REVENUES 2,317 2,182 (135)
EXPENDITURES:
Current: -
Community Services 252 150 102
Non-Departmental 173 2 171
Capital Outlay 2,135 1,829 306
TOTAL EXPENDITURES 2,560 1,981 579
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (243) 201 444
OTHER FINANCING USES:
Operating Transfers Out (228) (228)
EXCESS OF REVENUE OVER EXPENDITURES AND OTHER USES (471) (27) 444
FUND BALANCE-BEGINNING OF YEAR 341 341 -
FUND BALANCE(DEFICIT)-END OF YEAR $ (130) $ 314 $ 444
Page 70
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending September 30,1995
(Continued)
(in Thousands)
NARCOTICS FORFEITURE
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $ 50 $ -
(50)
From Other Agencies 520 428 (92)
TOTAL REVENUES 570 428 (142)
EXPENDITURES:
Current:
Police 944 774 170
TOTAL EXPENDITURES 944 774 170
EXCESS OF REVENUES (UNDER)EXPENDITURES (374) (346) 28
OTHER FINANCING USES:
Operating Transfers Out (178) (178) -
EXCESS OF REVENUE(UNDER)EXPENDITURES AND OTHER USES (552) (524) 28
FUND BALANCE-BEGINNING OF YEAR 537 537 -
FUND BALANCE(DEFICIT)-END OF YEAR $ (15) $ 13 $ 28
rt
TRANSPORTATION
Variance
j Favorable
REVENUES. Budget Actual (Unfavorable)
Other Taxes $ 1,250 $ 1,326 $ 76
From Use of Money and Property 100 107 7
From Other Agencies 780 1,259 479
TOTAL REVENUES 2,130 2,692 562
EXPENDITURES:
Current:
Public Works 524 518 6
Non-Departmental 18 is
Capital Outlay 1,850 278 1,572
TOTAL EXPENDITURES 2,392 814 1,578
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (262) 1,878 2,140
OTHER FINANCING USES:
Operating Transfers Out (1,597 (1,597)
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (1,859) 281 2,140
AND OTHER USES
FUND BALANCE-BEGINNING OF YEAR 2,825 2,825 -
FUND BALANCE-END OF YEAR $ 966 $ 3.106 2,140
Page 71
A
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
SPECIAL REVENUE FUNDS
(Continued)
(In Thousands)
AIR QUALITY
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $ 1 $ 4 $ 3
From Other Agencies 180 210 30
TOTAL REVENUES 181 214 33
EXPENDITURES:
Current:
City Administrator 151 67 84
TOTAL EXPENDITURES 151 67 84
EXCESS OF REVENUES OVER EXPENDITURES 30 147 117
OTHER FINANCING USES:
Operating Transfers Out 00) (10) -
EXCESS OF REVENUE OVER EXPENDITURES AND OTHER USES 20 137 117
FUND BALANCE-BEGINNING OF YEAR 44 44 -
FUND BALANCE-END OF YEAR $64 $181 $117
TRAFFIC IMPACT FEE
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $ 200 $ 354 $ 154
From Use of Money and Property - 20 20
TOTAL REVENUE 20D 374 174
EXPENDITURES:
Current:
Public Works 189 191 (2)
Non-Departmental 2 2 -
TOTAL EXPENDITURES 191 193 (2)
EXCESS OF REVENUES OVER EXPENDITURES 9 181 172
FUND BALANCE,BEGINNING OF YEAR 224 224
FUND BALANCE -END OF YEAR $ 233 $ 405 $ 172
Page 72
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
(Continued)
(in Thousands)
FOURTH OF JULY PARADE
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $1 $1
Other 295 144 (151)
TOTAL REVENUE 295 145 (150)
EXPENDITURES:
Current:
Community Services 299 185 114
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (4) (40) (36)
FUND BALANCE,BEGINNING OF YEAR 69 69 -
FUND BALANCE-END OF YEAR S 65 $ 29 $ (36)
ii
LIBRARY SERVICES FUND
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $180 $115 ($65)
Charges for Current Service 320 90 (230)
Other 129 31 L98)
TOTAL REVENUE 629 236 (393)
EXPENDITURES:
Current:
Library Services 251 167 84
Capital Outlay 3 3 -
TOTAL EXPENDITURES 254 170 84
EXCESS OF REVENUES OVER EXPENDITURES 375 66 (477)
OTHER FINANCING SOURCES(USES):
Operating Transfers In 57 57
Operating Transfers Out _(718) (718)
TOTAL OTHER FINANCING USES (661) (661)
EXCESS OF REVENUE AND OTHER SOURCES (UNDER)
EXPENDITURES AND OTHER USES (286) (595) (477)
FUND BALANCE,BEGINNING OF YEAR - - -
FUND DEFICIT-END OF YEAR $ (286) $ (595) $ (477)
Economic Uncertainties
f
OTHER FINANCING (USES):
L Operating Transfers Out $ (5.0130) $ (5,000) $
FUND BALANCE,BEGINNING OF YEAR 5,000 5,000
FUND DEFICIT-END OF YEAR $ $ $
Page 73
CITY OF HUNTINGTON BEACH
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending September 30,1995
(Continued)
(In Thousands)
TOTAL SPECIAL REVENUE FUNDS
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Other Taxes $ 1,250 $ 1,326 $ 76
Licenses and Permits 2,205 2,147 (58)
From Use of Money and Property 1,466 1,332 (134)
From Other Agencies 12,202 10,620 (1,582)
Charges for Current Service 320 111 (209)
Other 543 321 (222)
TOTAL REVENUES 17,986 15,857 (2,129)
EXPENDITURES:
Current:
City Administrator 1,545 838 707
Fire 21 3 18
Police 1,195 981 214
Economic Development 2,948 945 2,003
Community Services 581 350 231
Library Services 349 260 89
Public Works 2,247 1,827 420
Non-Departmental 710 539 171
Capital Outlay 15,890 8,204 7,686
TOTAL EXPENDITURES 25,48E 13,947 11,539
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (7,500) 1,910 9,410
OTHER FINANCING SOURCES(USES):
Operating Transfers In 1,769 1,679 (90)
Operating Transfers Out (10,072) (9,957) 115
TOTAL OTHER FINANCING SOURCES(USES) (8,303) (8,278) 25
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)
EXPENDITURES AND OTHER USES (15,803) (6,368) 9,435
FUND BALANCE-BEGINNING OF YEAR 18,225 18,225 -
FUND BALANCE -END OF YEAR $ 2,422 $11,857 $ 9,435
Page 74
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f
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.
F , -
• 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.
+ 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.
F =
• The Reservoir Hill Debt Service Fund records the debt service activity
of the Reservoir Hill Assessment bonds.
+ The Civic Improvement Corporation Fund records the debt service
activity of the Huntington Beach Civic Improvement Corporation.
Yr
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CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,1995
(IN THOUSANDS)
Public Public
1970 Park Redevelopment Facilities Financing
ASSETS: Bonds Agency Corporation Authority
Cash and Investments $ 112 $ 3,378 $ - $ 20
Cash With Fiscal Agent - - 489 2,722
Taxes Receivable - 1,234 - -
Other Receivables 3 183 21 -
Receivables-O_C.I.P. 98 661 - 22
Advances to Other Funds - - 29563
Due From Other Funds - 49 - -
TOTAL ASSETS $ 213 $ 5,505 $ 510 $32,327
LIABILITIES AND FUND EQUITY
LIABILITIES:
Other Accrued Liabilities $ - $ 159
Deferred Property Taxes - 1,082 - -
TOTAL LIABILITIES - 1,241 - -
FUND EQUITY:
Reserved Equity:
Reserved for Long Term Receivables-Orange County Bankruptcy 98 661 - 22
Reserved for Long-Term Receivables from Other Funds - - - 29,563
Reserved for Debt Service 115 3,603 510 2,742
Total Reserved Fund Equity 213 4,264 510 32,327
TOTAL FUND EQUITY 213 4,264 510 32,327
TOTAL LIABILITIES AND FUND EQUITY $ 213 $ 5,505 $ 510 $32,327
Page 75
Reseffior Hill Civic
f i Assessment Improvement
District Corporation Total
$ 114 $ - 3,624
ill 2,862 6,184
5 - 1,239
2 5 214
14 - 795
- - 29,563
- - 49
246 2,867 $41,668
f $ 159
1,082
1,241
f
14 - 795
- - 29,563
232 2,867 10,069
246 2,867 40,427
246 2,867 40,427
246 $ 2,867 $41,668
Page 76
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDING SEPTEMBER$0,1995
(IN THOUSANDS)
Public Public
1970 Park Redevelopment Facilities Financing
REVENUES: Bonds Agency Corporation Authority
Property Taxes $ 16 $ 4,631 $ - $ -
From Use of Money and Property 13 204 45 2,913
TOTAL REVENUES 29 4,835 45 2,913
EXPENDITURES:
Current:
Non-Departmental 4 404 - -
Debt Service--
Principal 445 1,285 340 430
Interest 13 2,738 58 3,018
TOTAL_EXPENDITURES 462 4,427 398 3,448
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (433) 408 (353) (535)
OTHER FINANCING SOURCES(USES):
Operating Transfers In - 133 399 -
Proceeds of Long-Term Debt - 142 - -
Operating Transfers Out - (896) - (137)
TOTAL OTHER FINANCING SOURCES(USES) - (621) 399 (137)
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)
EXPENDITURES AND OTHER USES (433) (213) 46 (672) -
FUND BALANCE-BEGINNING OF YEAR 646 4,477 464 32,999
FUND BALANCE-END OF YEAR $ 213 $ 4,264 $ 510 $32,327
Page 77
Reservior Hill Civic
Assessment Improvement
District Corporation Total
$ 196 $ - $ 4,843
12 177 3,364
208 177 8,207
16 424
50 870 3,420
104 1,960 7,891
170 2,830 11.735
38 (2,653) (3,528)
2,672 3,204
- 142
2,672 2,313
38 19 (1,215)
208 2,848 41,642
$ 246 2,867 $40,427
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Page 78
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(In Thousands)
1970 Park Bonds
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $11 $16 $ 5
From Use of Money and Property 33 13 (20)
TOTAL REVENUES 44 29 (15)
EXPENDITURES:
Current:
Non-Departmental 4 4 -
Debt Service:
Principal 445 445 -
interest 13 13 -
TOTAL EXPENDITURES 462 462 - -
EXCESS OF REVENUES UNDER EXPENDITURES (418) (433) (15)
EXCESS OF REVENUE AND OTHER SOURCES OVER EXPENDITURES AND
OTHER USES (418) (433) (15)
FUND BALANCE-BEGINNING OF YEAR 646 646 -
FUND BALANCE-END OF YEAR $ 228 $ 213 $ (15)
Redevelopment Agency
Variance Favorable
REVENUES: Budget Actual (unfavorable)
Property Taxes $4,104 $4,631 $ 527
From Use of Money and Property 305 204 (101)
TOTAL REVENUES 4,409 4,835 426
EXPENDITURES:
Current: - -
Non-Departmental 339 404 (65)
Debt Service:
Principal 1,285 1,285 -
Interest 2,821 2,738 83
TOTAL EXPENDITURES 4,445 4,427 1B
EXCESS OF REVENUES OVER EXPENDITURES (36) 408 444
OTHER FINANCING SOURCES(USES):
Operating Transfers In 137 133 (4)
Proceeds of Long-Term Debt 137 142 5
Operating Transfers Out (749) (896} Q47)
TOTAL OTHER FINANCING USES (475) (621) (146)
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)
EXPENDITURES AND OTHER USES (511) (213) 298
FUND BALANCE-BEGINNING OF YEAR 4,477 4,477 -
FUND BALANCE-END OF YEAR $ 3,966 $ 4,264 $ 298
Page 79
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(Continued)
(in Thousands)
Public Facilities Corporation
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $ 27 $ 45 Is
EXPENDITURES:
Debt Service:
Principal 340 340
Interest 58 58
TOTAL EXPENDITURES 398 398
EXCESS OF REVENUES UNDER EXPENDITURES (371) (353) 18
OTHER FINANCING SOURCES:
Operating Transfers In 399 399
EXCESS OF REVENUE AND OTHER SOURCES OVER EXPENDITURES 28 46 18
FUND BALANCE-BEGINNING OF YEAR 464 464 -
FUND BALANCE-END OF YEAR $492 $510 $ 18
Public Financing Authority
Variance
ti
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property S 2,660 $ 2,913 253
EXPENDITURES:
Current:
Principal 395 430 (35)
r Interest
3,017 3.018
(1)
TOTAL EXPENDITURES 3,412 3,448 (36)
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (752) (535) 217
OTHER FINANCING(USES):
Operating Transfers Out (in
EXCESS OF REVENUE OVER EXPENDITURES AND OTHER USES (8139) (672) 217
FUND BALANCE-BEGINNING OF YEAR 32,999 32,999 -
FUND BALANCE-END OF YEAR $32,110 $32,327 $217
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CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending September 30, 1995
(Continued)
(in Thousands)
Reservior Hill Assessment District
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $137 $196 $ 59
From Use of Money and Property 16 12 (4)
TOTAL REVENUES 153 208 55
EXPENDITURES:
Current:
Non-Departmental 16 16 -
Debt Service:
Principal 50 50 -
Interest 104 104 -
TOTAL EXPENDITURES 170 170 -
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (17) 38 55
FUND BALANCE-BEGINNING OF YEAR 208 208 -
FUND BALANCE-END OF YEAR $191 $ 246 $ 55
Civic Improvement Corporation
Variance Favorable
REVENUES: Budget ,actual (Unfavorable)
From Use of Money and Property $ 120 $ 177 $ 57
EXPENDITURES:
Current:
Capital Outlay 30 - 30
Debt Service:
Principal 735 870 (135)
Interest 3,117 1,960 1,157
TOTAL EXPENDITURES 3,882 2,830 1,052
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (3,762) (2,653) 1,109
OTHER FINANCING SOURCES
Operating Transfers In 2,469 2,672 203
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)EXPENDITURES (1,293) 19 1,312
FUND BALANCE-BEGINNING OF YEAR 2,848 2,848 -
FUND BALANCE-END OF YEAR $1,555 $2,867 $1,312
Page 81
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CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending September 30, 1995
(Continued)
(in Thousands)
TOTAL DEBT SERVICE FUNDS
f ;
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $ 4,252 $ 4,843 $ 591
From Use of Money and Property 3,161 3,364 203
TOTAL REVENUES 7,413 8,207 794
• EXPENDITURES:
Current: -
Non-Departmental 359 424 (65)
Capital Outlay 30 - 30
Debt Service:
Principal 3,250 3,420 (170)
Interest 9,130 7,891 1,239
TOTAL EXPENDITURES 12,769 11,735 1,034
EXCESS OF REVENUES UNDER EXPENDITURES (5,356) (3,528) 1,828
OTHER FINANCING SOURCES(USES):
Operating Transfers In 3,005 3.204 199
Proceeds of Long-Term Debt 137 142 5
Operating Transfers Out (886) (1,033) (147)
TOTAL OTHER FINANCING SOURCES 2.256 2,313 57
EXCESS OF REVENUE AND OTHER SOURCES UNDER EXPENDITURES AND
OTHER USES (3,100) (1,215) 1,885
FUND BALANCE-BEGINNING OF YEAR 141,642 41,642 -
FUND BALANCE-END OF YEAR $3!! 40,427 $ 1,885
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THIS PAGE LEFT BLANK INTENTIONALLY
CAPITAL PROJECTS FUNDS account for the acquisition and
construction of capital assets other than those financed by proprietary
fund types.
• The Parkinq 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
increment revenues required by the California Health and Safety Code.
0 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.
0 The Capital Improvement Fund accounts for major capital improvements
not made by other capital projects funds or proprietary funds.
o 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.
4 The Reservoir Hill Assessment District Capital 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.
CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, '1995
(IN THOUSANDS)
LOW-
Parking Redevelopment Income
ASSETS: Structure Agency Housing
Cash and Investments $ 2,160 $ 4,563 $ 926
Cash With Fiscal Agent - - -
Other Receivables 46 53 27
Receivables-O.C.I.P. 410 674 303
Advances to Other Funds - - 2,094
Deposits and Other Assets - - -
Land Held for Resale(Net) - 15,719 885
Due from Other Funds - 66 -
TOTAL ASSETS $ 2,616 $ 21,075 $ 4,235
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts Payable $ - $ 31 $ 125
Other Accrued Liabilities - 5 3
Deposits - 32 -
Due to Other Funds - 1,828
Deferred Revenue - -
TOTAL LIABILITIES - 1,896 128
FUND EQUITY:
Reserved Equity:
Reserved for Land Held for Resale - 15,719 885
Reserved for Encumbrances - 3,126 139
Reserved for Long-Term Receivables-Orange County Bankruptcy 410 674 303
Reserved for Long-Term Receivables from Other Funds - - 2,094
Reserved for Capital Projects 2,206 - -
Total Reserved Fund Equity 2,616 19,519 3,421
Unreserved Equity:
Designated for Future Expenditures - 938 105
Undesignated - (1,278) 581
Total Unreserved Fund Equity - (MM 686
TOTAL FUND EQUITY 2,616 19,179 4,107
TOTAL LIABILITIES AND FUND EQUITY $ 2,616 $ 21,075 $ 4,235
Page 83
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Capital Mello-Roos
Library Parking Improvement Pier Rebuilding Assessment Holly Art Center
Expansion Authority Fund Fund District Parking In-Lieu Seacliffe Fund Total
$ $ 534 $ 711 2.213 $ 11 186 $ $ - 11,304
- - - 162 - - 162
10 6 334 - 476
48 102 94 404 5 2,040
- 134 319 - - 2,547
50
50
16,604
65
48. 780 1,130 2,951 173 $ 186 55 $ 33,249
$ 6 113 $ 20 295
32
17 - - 14 - 1.859
- 34 119 - - 153
17 40 232 20 14 2,347
16,604
- - 1,301 - - 4,566
48 102 94 404 5 - 2.040
- 100 - - - - 2.194
- - - - 2.206
48 202 94 1,705 5 - 27,610
503 1,546
(17) 538 301 1,246 173 166 36 - 1,746
(17) 538 804 1,246 173 166 36 - 3,292
30=
31 740 898 2,951 173 166 41 -
$ 48 780 $ 1,130 $ 2,951 $ 173 $ 186 $ 55 $ $33,249
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Page 84
CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
Low-
Parking Redevelopment Income
REVENUES: Structure Agency Housing
Other Taxes $ - $ 493 $ -
Licenses and Permits - 45
From Use of Money and Property 110 730 84
From Other Agencies - - 46
Other - 93 14
TOTAL REVENUES 110 1,361 144
EXPENDITURES:
Current:
Economic Development - 1,444 248
Community Services - - -
Public Works - - - _
Non-Departmental 18 25 23
Capital Outlay - 1278 589
TOTAL EXPENDITURES 18 2,747 860
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 92 (1,386) (716)
OTHER FINANCING SOURCES(USES):
Operating Transfers In - - 896
Proceeds of Long-Term Debt - 5,182 -
Operating Transfers Out (215) (5,156) (80)
TOTAL OTHER FINANCING SOURCES(USES) (215) 26 816
EXCESS OF REVENUE AND OTHER SOURCES OVER(UNDER)
EXPENDITURES AND OTHER USES (123) (1,360) 100
FUND BALANCE-BEGINNING OF YEAR 2,739 20,539 4,007
FUND BALANCE-END OF YEAR $ 2,616 $ 19,179 $ 4,107
Page 85 ;
Capital Mello-Roos
Library Parking Improvement Pier Rebuilding Assessment Holly Art Center
Expansion Authority Fund Fund District Parking In-Lieu 5eaoliffe Fund Total
$ - $ - $ - $ - $ - $ - $ - $ - $ 493
- - 4 - - 49
- 28 545 114 8 6 - - 1,625
- - 12 - - 803 - 861
r
12 - - - - 119
28 545 138 8 10 803 - 3,147
_ - _ - - - - - 1,692
- 33 - - - - - - 33
40 - - - - - - - 40
- 29 5 16 - - - - 116
579 - 1,203 105 28 - 874 - 4,657
i 619 62 1,208 122 28 - 874 - 6,538
(619) (34) (663) - 16 (20) 10 (71) - (3,391)
378 - 709 - - 156 - 54 2,193
- 5,182
- - - - - - - (5,451)
378 - 709 - - 156 - 54 1,924
r r
l (241) (34) 46 16 (20) 166 (71) 54 (1,467)
272 774 852 2,935 193 - 112 (54) 32,369
$ 31 $ 740 $ 898 $ 2,951 $ 173 $ 166 $ 41 $ - $30,902
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THIS PAGE LEFT BLANK INTENTIONALLY
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.
The Emerald Cove Housinq Fund accounts for the operations of a
senior-citizens apartment complex.
• The Emergency Fire Medical Fund acounts for the user-fee portion of
the City's paramedic service.
• The Refuse Collection Fund accounts for the City's refuse collection
program.
... ...... ..... .
i
CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, '1996
(IN THOUSANDS)
Emerald
Water Meadowlark Cove Emergency Refuse Cultural
ASSETS: Utility Goff Course Housing Fire Medical Collection Affairs Total
Current Assets:
Cash and Investments $ 356 $ 259 $ 1,797 $ - $ - $ - $ 2,412
Accounts Receivable 762 14 - 2,086 335 - 3,197
interest Receivable 80 - 37 - - - 117
Due from Other Funds 6,948 - - - - - 6,948
Inventory 676 - - - - - 676
Unbiiled Receivables 1,462 - - - 761 - 2,223
Total Current Assets 10,284 273 1,834 2,085 1,096 - 15,573
Other Assets:
Cash With Fiscal Agent - - 471 - - - 471
Advances to Other Funds 5,284 - - - - - 5,284
Total Other Assets 5,284 - 471 - - - 5,755
Plant,Property and Equipment:
Land 391 3,052 1,288 - - 759 5,490
Buildings 2,709 155 4,102 - - 1,249 8,215
Machinery and Equipment 53,878 - - 345 - - 54,223
Construction in Process 5,522 - - - - 5,522
Subtotal 62,500 3,207 5,390 345 - 2,W8 73,450
Less Accumulated Depreciation (29,461) (155) (820) (205) - - (30,641) ,
Total Plant,Property and Equipment 33,039 3,052 4,570 140 2,008 42,809
TOTAL ASSETS $48,607 $ 3,325 $ 6,875 $ 2,226 $ 1,096 $ 2,008 $ 64,137
LIABILITIES AND FUND EQUITY
LIABILITIES:
Current Liabilities:
Accounts Payable $ 1,027 $ - $ 21 $ 22 $ 689 $ 5 1,764
Accrued Payroll 59 - - 18 3 15 95
Accrued Interest - - 31 - - - 31
Deposits 2,325 - 20 - - - 2,345
Due to Other Funds - - 546 411 236 1,193,
Current Portion of Long-Term Debt - - 85 - - 85-
Total Current Liabilities 3,411 157 586 1,103 256 5,513
Long-Term Liabilities:
Certificates of Participation - - 5,475 - - - 5,475
Compensated Absences 210 - - 21 15 - 246
Advances from Other Funds - - 243 - - - 243
Less Current Portion - - (85) - - - (85)
Total Long-Term Liabilities 210 - 5,633 21 15 - 5,879.
TOTAL LIABILITIES 3,621 - 5,790 607 1,118 256 11,392
FUND EQUITY:
Contributed Capital 38,324 1,267 1,287 311 - 2,008 43,197
Retained Earnings(Accumulated Deficit): 6,662 2,058 (202) 1,308 (22) (256) 9,548,
TOTAL FUND EQUITY 44,986 3,325 1,085 1,619 (22) 1,752 52,746
TOTAL LIABILITIES AND FUND EQUITY $48,607 $ 3,325 $ 6,875 $ 2,226 $ 1,096 $ 2,008 $ 64,137
Page 87
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CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS(ACCUMULATED DEFICIT)
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
Emerald
Water MeadoMark Cove Emergency Refuse Cultural
OPERATING REVENUES: Utility Golf Course Housing Fire Medical Collection Affairs Total
Sales $15,371 $ - $ - $ - $ - $ - $ 15,371
Rentals - 246 604 - -
Fees for Service - - - 2,563 7,882 - 10,445
Other 402 - - - 41 110 553
TOTAL OPERATING REVENUES 15,773 246 604 2,563 7,923 110 27,219
OPERATING EXPENSES:
Water Purchases 4,472 - - - - - 4,472
{ Administration and Contract Services 3,195 - 298 2,198 8,406 393 14,490
Es
Engineering 305 - - - - - 305
Production 3,896 - - - - - 3,896
Maintenance 1,129 - - - - - 1,129
Water Meters 678 18 - - - - 696
s Non-Departmental 199 414 - - - - 613
Water Quality 361 - - - - - 361 -
In-Lieu Taxes to General Fund 2,413 - - - - - 2,413
! ` Depreciation 1,369 - 82 51 - 1,502
TOTAL OPERATING EXPENSES 18,017 432 380 2,249 8,406 393 29,877
OPERATING INCOME(LOSS) (2,244) (186) 224 314 (483) (283) (2,658)
NON-OPERATING REVENUES(EXPENSES).
a T Interest Income 890 61 106 - - - 1,057
loirrt Venture Loss (749) - - - - - (149)
s Interest Expense - (87) (377) - - - (464)
Loss on Orange County Investment Pool (1,545� (374) (322) - (6)
TOTAL NON-OPERATING REVENUES(EXPENSES) (8(4) (400) (593} - (6) - (1,803)
NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (3,048) (586) (369) 314 (489) (283) (4,461)
OPERATING TRANSFERS:
Operating Transfers In - - 80 - - 81 161
'. Operating Transfers Out - - - - (54) (54)
s } TOTAL_OPERATING TRANSFERS - - So - - 27 107
NET INCOME(LOSS) (3,048) (586) (289) 314 (489) (256) (4,354)
RETAINED EARNINGS(ACCUMULATED DEFICITS)-BEGINNING OF
t YEAR 9,710 2,644 87 994 467 - 13,902
RETAINED EARNINGS(ACCUMULATED DEFICIT),END OF YEAR $ 6,662 $ 2,058 $ (202) $ 1,308 $ (22) $ (256) $ 9,548
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Page 88
CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1996
(IN THOUSANDS)
Emerald
Water Meadowlark Cove Emergency Refuse Cultural
CASH FLOWS FROM OPERATING ACTIVITIES Utility Golf Course Housing Fire Medical Collection Affairs Total
OPERATING INCOME(LOSS) $ (2,244) $ (186) $ 224 $ 314 $ (483) $ (283) $ (2,658)
Adjustments Required to Reconcile Operating Income(Lass)to Net Cash
Provided (Used)by Operating Activities:
Depreciation 1,369 - 62 51 - - 1,502
Decrease(increase)in Accounts Receivable 192 (14) - (336) 175 - 17
Decrease(Increase)in Interest Receivable (32) 55 24 - - - 47
Decrease(Increase)in Unbilled Receivable (5) - - - (137) - (142)
Decrease(Increase)in Advance to Other Funds (280) - - - - - (280)
Decrease(Increase in Due from Other Funds 225 - - - - - 225
Decrease(Increase)in inventory 35 - - - - - 35
Increase(Decrease)in Accounts Payable (792) - (1) (44) 52 - (785)
Increase(Decrease)in Accrued Payroll - - - (3) (1) 12 8
Increase(Decrease)in Interest Payable - (60) - - - - (60)
Increase(Decrease)in Amount Due to Other Funds - - - 35 400 244 679
Increase(Decrease)in Deposits 3 - (5) - - - (2)
Increase(Decrease)in Compensated Absences (68) - - (17) - (85)
TOTAL ADJUSTMENTS 647 (19) 100 (314) 489 256 1,159
NET CASH PROVIDED(USED) BY OPERATING ACTIVITIES (1,597) (205) 324 - 6 (27) (1,499)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:
Operating Transfers In From Other Funds - - 80 - - 81 161
Operating Transfers Out to Other Funds - - - - - (54) (54)
TOTAL CASH FLOWS PROVIDED(USED)FROM NON-CAPITAL
FINANCING ACTIVITIES - - 80 - - 27 107
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Interest Paid - (87) (377) - - - (464)
Acquisition and Construction of Capital Assets (3,100) - - - - - (3,100)
Proceeds of Sale of Plant,Property and Equipment 98 - - - - - 98
Principal Paid on Long-Term Debt - (1,521) (80) - - - (1,601)
TOTAL CASH USED FOR CAPITAL AND RELATED FINANCING
ACTIVITIES (3,002) (1,608) (457) - - - (5,067)
CASH FLOWS FROM INVESTING ACTMTY
Joint Venture Cash Paid (149) - - - - - (149)
Loss on Orange County Investment Pool (1,545) (374) (322) - (6) - (2,247)
Interest on Investments 890 61 106 - - - 1,057
TOTAL CASH FLOWS FROM INVESTING ACTIVITY (804) (313) (216) - (6) - (1,339)
NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (5,403) (2,126) (269) - - - (7,798)
CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 5,759 2,385 2,537 - 10,681
CASH AND CASH EQUIVALENTS END OF YEAR $ 356 $ 259 $ 2,268 $ - $ - $ - $ 2,883
NON-CASH ACTMTIES:
Plant,Property,and Equipment Contributions $ 89 $ - $ - $ - $ - $ 2,008 $ 2,097
Joint Venture Activity $ (149) $ - $ - $ - $ ($149)
Page 89
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 City's 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.
f
CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 1995
(IN THOUSANDS)
Self- Equipment
ASSETS: Insurance Replacement Total
Current Assets:
Cash and Investments $ 17 $4,749 $ 4,766
Prepaid Insurance 997 - 997
Due from Other Funds 1,647 30 1,677
Other Receivables 32 73 105
Total Current Assets 2,693 4,852 7,545
Other Assets:
Cash With Fiscal Agent - 5 5
Investment in Joint Venture 419 - 419
Total Other Assets 419 5 424
Plant,Property and Equipment
Machinery and Equipment 33,705 33,705
Less Accumulated Depreciation (21I&M (21,833)
Total Plant,Property and Equipment 11,872 11,872
TOTAL ASSETS $ 3,112 $ 16,729 $ 19,841
LIABILITIES AND FUND EQUITY
LIABILITIES:
Current Liabilities:
Accounts Payable $ 138 $ 452 590
Accrued Payroll 11 11
Due to Other Funds 143 143
Accrued Interest - 27 27
Current Portion of Long-Term Debt - 1,452 1,452
Total Current Liabilities 292 1,931 2,223
Long-Term Liabilities:
Certificates of Participation 1,255 1,255
Leases Payable - 512 512
Workers Compensation Claims 5,293 - 5,293
Health Claims 131 - 131
General Liability Claims 5,842 - 5,842
Compensated Absences 31 - 31
Less Current Portion - (1,452) -(1.1L521
Total Long-Term Liabilities 11,297 315 11,612
TOTAL LIABILITIES 11,589 2.246 13,835
FUND EQUITY:
Contributed Capital 18,569 18,569
Accumulated Deficit (81477) (4,086) (12,563)
TOTAL FUND EQUITY (8,477) 14,483 6,006
TOTAL LIABILITIES AND FUND EQUITY 3,112 $ 16,729 5 19,841
Page 90
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CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
r COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN ACCUMULATED DEFICITS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
_ Self- Equipment
OPERATING REVENUES: Insurance Replacement Total
r. Fees for Service $ 7,561 $ 2,147 $ 9,708
ti
Other 559 - 559
TOTAL OPERATING REVENUES 8,120 2,147 10,267
OPERATING EXPENSES:
r Administration 3,226 1,087 4,313
Employee Medical Claims 3,301 - 3,301
s Liability Claims 1,347 - 1,347
Workers Compensation Claims 1,997 - 1,997
r r Depreciation - 2,259 2,259
t TOTAL OPERATING EXPENSES 9,871 3,346 13,217
3 OPERATING LOSS (1,751) 01199) (2,950) -
NOWOPERATING REVENUES: -
S ' Interest Income 105 250 355
f Interest Expense - (168) (168)
Loss on Orange County Investment Pool (337) (896) (1,233)
Joint Venture Income(Loss) (95) - (95)
TOTAL NON-OPERATING REVENUES (327) (814) (1,141)
i NET LOSS BEFORE OPERATING TRANSFERS (2,078) (2,013) (4,091)
Operating Transfers In - 15D 15D
NET LOSS (2,078) (1,863) (3,941)
! ACCUMULATED DEFICIT,BEGINNING OF YEAR (6,399) (2,223) (8,622)
1 ACCUMULATED DEFICIT, END OF YEAR $ (8,477) $ (4,086) $ (12,563)
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CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1995
(IN THOUSANDS)
Equipment
Self-Insurance Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
OPERATING LOSS $ (1,751) $ (1,199) $ (2,950)
ADJUSTMENTS TO RECONCILE OPERATING LOSS TO
NET CASH PROVIDED(USED)BY OPERATING
ACTIVITIES:
Depreciation - 2,259 2,259
Decrease(Increase)in Prepaid Insurance (335) - (335)
Decrease(Increase)in Amounts Due from Other Funds (43) (30) (73)
Decrease(increase)in Other Receivables 57 85 142
Increase(Decrease)in Accounts Payable 93 425 518
Increase(Decrease)in Due to Other Funds 56 - 56
Increase(Decrease)in Leases Payable - (115) (115)
Increase(Decrease)in Compensated Absences 6 - 6
Increase(Decrease)in Accrued Payroll 5 - 5 _
TOTALADJUSTMENTS (161) 2,624 2,463
TOTAL CASH FLOWS PROVIDED(USED)FROM
OPERATING ACTIVITIES (1,912) 1,425 (487)
CASH FLOWS FROM NON-CAPITAL fINANCING
ACTIVITIES:
Decrease in Claims Paid 406 - 406
Operating Transfers In From Other Funds - 150 150
TOTAL CASH FLOWS PROVIDED(USED)FROM NON-
CAPITAL FINANCING ACTIVITIES 406 150 556
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Interest Paid - (168) (168)
Proceeds from Sale of Assets - 563 563
Loss on Sale of Fixed Assets - 108 108
Acquisition and Construction of Capital Assets - (1,611) (1,611)
Principal Paid on Long-Term Debt - (1,255) (1,255)
TOTAL CASH USED IN CAPITAL AND RELATED
FINANCING ACTIVITIES - (2,363) (2,363)
CASH FLOWS FROM INVESTING ACTIVITIES
Loss on Orange County Investment Pool (337) (896) (1,233)
Interest on Investments 105 250 355
TOTAL CASH FLOWS PROVIDED FROM INVESTING
ACTIVITY (232) (646) (878)
NET INCREASE(DECREASE)IN CASH AND CASH
EQUIVALENTS (1,738) (1,434) (3,172)
CASH AND CASH EQUIVALENTS,BEGINNING OF
YEAR 1,755 6,188 7,943
CASH AND CASH EQUIVALENTS,END OF YEAR $ 17 $ 4,754 $ 4,771
NON-CASH ACTIVITIES:
Equipment Contributions $ - $ 543 $ 543
Joint-Venture Activity $ (95) $ - $ (95)
Page 92
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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.
f
• The Retiree Medical Insurance Fund accounts for the City's medical
retirement program.
rs
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.
f $ Trust Fund:
F
• The Retirement Supplement Fund accounts for the supplemental
tiy{ retirement plan provided to retirees.
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CITY OF HUNTINGTON BEACH
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30,1995
(IN THOUSANDS)
Agency Pension
ASSETS: Funds Trust Fund Total
Cash and Investments $ 5,228 $ - $ 5,228
Cash With Fiscal Agent 33,553 - 33,553
Due from Other Funds 78 - 78
Notes Receivable,Net of Allowance for Doubtful Accounts 942 - 942
Other Assets 783 783
TOTAL ASSETS $ 40,584 $ - $ 40,584
LIABILITIES:
Deposits Payable $ 2,404 $ - $ 2,404
Notes Payable 22 - 22
Due to Other Funds - 289 289
Funds Held for Others 4,175 - 4,175
Deferred Compensation Payable 33,983 - 33,983
TOTAL LIABILITIES 40,584 289 40,873
FUND BALANCES -
Reserved for Pension Payments - (289) (289)
TOTAL LIABILITIES AND FUND BALANCES $ 40,584 $ - $ 40,584
CITY OF HUNTINGTON BEACH
TOTAL AGENCY FUNDS
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
October 1, September
ASSETS: 19" Additions Deductions 30,1995
Cash and Investments $ 5,057 $ 4,592 $ (4,421) $ 5,228
Cash With Fiscal Agent 29,172 5,067 (688) 33,553
Notes Receivable,Net of Allowance for Doubtful Accounts 1,141 4 (203) 942
Due From Other Funds 87 - (9) 78
Other Assets 344 2,108 (1,669} 783
TOTAL ASSETS $ 35,801 $ 11,771 $ (6,988) $ 40,584
LIABILITIES:
Deposits Payable 1,981 5,315 (4,892) 2,404
Notes Payable 23 - (1) 22
Funds Held for Others 3,931 1,169 (925) 4,175
Deferred Compensation Payable 29,8W 5,287 (1,170) 33,983
TOTAL LIABILITIES $ 35,801 $ 11,771 $ (6,988) $ 40,584
Page 93
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CITY OF HUNTINGTON BEACH
AGENCYFUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
EMPLOYEE DEFERRED COMPENSATION
October 1, September
ASSETS: 1994 Additions Deductions 30,1995
Cash and Investments $ 66 $ 485 $ (505) $ 46
Cash With Fiscal Agent 28,653 4,798 (457) 32,994
Notes Receivable,Net of Allowance for Doubtful Accounts 1,141 4 (203) 942
Other Assets 29 - (6) 23
TOTAL ASSETS $ 29,889 $ 5,287 $ (1,171) $ 34,005
LIABILITIES:
Notes Payable $ 23 $ - $ (1) $ 22
Deferred Compensation Payable 29,866 5287 (1,170) 33,983
TOTAL LIABILITIES $ 29,889 $ 5,287 $ (1,171) $ 34,005
GENERAL DEPOSIT FUND
October 1, September
ASSETS: 1994 Additions Deductions 30,1995
Cash and Investments $ 651 $ 348 $ (233) $ 766
LIABILITIES:
Deposits Payable $ 651 $ 348 $ (233) $ 766
MELLO-ROOS ASSESSMENT DISTRICT
t
October 1, September
ASSETS: 1994 Additions Deductions 30,1995
-} Cash and Investments $ 15 $ 292 $ (254) $ 53
Cash With Fiscal Agent 519 2e9 (229) 559
( Other Assets - 107 - 107
F TOTAL ASSETS $ 534 $ 668 $ (483) $ 719
LIABILITIES:
t E Deposit Payable $ 534 $ 668 $ (483) $ 719
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Page 94
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CITY OF HUNTINGTON BEACH
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDING SEPTEMBER 30, 1995
(CONTINUED)
(IN THOUSANDS)
RETIREE MEDICAL INSURANCE
October 1, September
ASSETS: 1994 Additions Deductions 30,1995
Cash and Investments $ 3,841 $ 709 $ (916) $ 3,634
Due from Other Funds 87 - (9) 78
Other Assets 3 460 - 463
TOTAL ASSETS $ 3,931 $ 1,169 $ (925) $ 4,175
LIABILITIES:
Funds Held for Others $ 3,931 $ 1,169 $ (925) $ 4,175
BUSINESS IMPROVEMENT DISTRICT
October 1, September
ASSETS: 1994 Additions Deductions 30,1995
Cash and Investments $ 13 $ 144 $ (157) $ -
Other Assets 15 138 (143) 10
TOTAL ASSETS $ 28 $ 282 $ (300) $ 10
LIABILITIES:
Deposits Payable $ 28 $ 282 $ (300) $ 10
CENTRAL NET
October 1, September
ASSETS: 1994 Additions Deductions 30,190
Cash and Investments $ 471 $ 2,614 $ (2,356) $ 729
Other Assets 297 1,403 (1,520) 180
TOTAL ASSETS $ 768 $ 4,017 $ (3,876) $ 909
LIABILITIES:
Deposits Payable $ 768 $ 4,017 $ (3,876) $ 909
Page 95
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CITY OF HUNTINGTON BEACH
RETIREMENT SUPPLEMENT TRUST FUND
BALANCE SHEET
SEPTEMBER 30, '1995
(IN THOUSANDS)
ASSETS: TOTAL
Cash and Investments $
LIABILITIES AND FUND BALANCES:
Due to Other Funds $ 289
UnreservedlUndesignated (2M
Total $
STATEMENT OF REVENUE,EXPENSE AND CHANGE IN FUND BALANCE
FISCAL YEAR ENDING,SEPTEMBER 30,1995
(IN THOUSANDS)
REVENUES: TOTAL.
i City Contributions
t EXPENSE:
Pension Payments and Administration 561
EXCESS OF REVENUE OVER(UNDER)EXPENSE (175)
FUND BALANCE,BEGINNING OF YEAR (114)
FUND BALANCE,END OF YEAR $ (289)
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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, 1995
(IN THOUSANDS)
GENERAL FIXED ASSETS:
Land $ 66,408
Buildings 59,327
Joint Ventures 852
Improvements Other Than Buildings 2,007
Construction in Process 3,139
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 131,733
INVESTMENTS IN GENERAL FIXED ASSETS FROM:
General Fund $ 8,604
Special Revenue Funds 21,494
Capital Projects Funds 79,525
Donations 21,258
Joint Ventures 852
TOTAL INVESTMENTS IN GENERAL FIXED ASSETS $ 131,733
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
FOR THE FISCAL YEAR ENDING SEPTEMBER 30,1995
(IN THOUSANDS)
October 1, September
1994 Additions Retirements 30,1995
Fire $ 3,054 $ 125 $ (47) $ 3,132
Police 665 - - 665
Community Services 81,652 826 (1,405) 81,073
Public Works 3,354 388 (252) 3,490
Library Services 13,246 - (33) 13,213
Non-Departmental 30,280 494 (614) 30,160
TOTAL $ 132,251 $ 1,833 $ (2,351) $ 131,733
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTMTY
SEPTEMBER 30,1995
(IN THOUSANDS)
Construction
Land Buildings Improvements in Process Joint Venture Total
Fire $ - $ 2,820 $ - $ - $ 312 $ 3,132
Police - 607 58 - - 665
Community Services 46,839 30,045 1,949 2,240 - 81,073
Public Works - 2,726 - 764 - 3,490
Library - 13,213 - - - 13,213
Non-Departmental 19,569 9,916 - 135 540 30,160
TOTAL $ 66,408 $59,327 $ 2,007 $ 3,139 $ 852 $131,733
Page 97
i
The GENERAL LONG-TERM DEBT ACCOUNT
GROUP accounts for long-terra 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 FISCAL YEAR ENDING SEPTEMBER 30, 1995
(IN THOUSANDS)
October 1, September 30,
1994 Additions Retirements 1995
1970 Park Bonds $ 445 $ - $ (445) $ -
Public Facilities Corporation Leasehold Mortgage Bonds 1,085 - (340) 745
Civic Improvement Corporation Refunding Certificates of Participation 20,965 - (540) 20,425
(Civic Center)-1993
Civic Improvement Corporation Refunding Certificates of Participation 15,705 -
(Police Administration Binding)-1993 (330} 15,375
Compensated Absences 5,032 1,265 (1,444) 4,853
Advances from Other Funds 119,248 6,086 (53,550) 71,784
1992 Public Financing Authority Revenue Bonds 32,715 - (430) 32,285
Notes Payable 711 - (57) 654
Leases Payable 118 - (19) 99
Reservoir Hill Assessment Bonds 1,305 - (50) 1,255
Total General Long Term Debt $ 197,329 $ 7,351 $ (57,205) $ 147,475
Page 98
STATISTICAL SECTION
CITY OF HUNTINGTON BEACH
GOVERNMENTAL FUND EXPENDITURES BY FUNCTION AND ACTIVITY
LAST TEN FISCAL YEARS
pN THOUSANDS)
AArrristahve CH Econan c
CRyComcil CityAdrnirmstylor CityTreasrer OtyAtt= City Clerk Services Development Fire Pofce Devdop w4l
1985-86 $ 135 $ 848 $ 288 $ 897 $ 203 $ 2,949 $ 2,715 $ 10,252 $ 18.745
1986.87 129 959 283 913 252 3,088 3,248 11,187 20.519
1987438 130 1,106 290 973 245 3,287 4,187 11,840 22,370
1988-89 156 1.304 322 1,042 293 3,409 4,393 12,722 23,565
1989-90 215 853 438 1,308 330 3,835 5.404 14,148 26,369
1990-91 197 1.564 700 1.340 457 4.187 5,3% 14,169 28,148
1991-92 297 1,569 727 1,563 402 4.042 6,628 13,173 30,417
1992,93 213 1,480 709 1,507 449 4.108 6,097 16.505 32,355
'1993-94 282 2,691 897 2,168 517 5,140 10,406 19,502 40,535
1994-95 224 1,672 709 1,866 485 4,200 3,252 15,304 32,795 2,637
GOVERNMENTAL FUND REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(IN THOUSANDS)
Licenses and VMS erd Use of Money From Odw Charges for _
Frscel Year Property Tax Orw Taxes Penr& Forfeihres and Property Agencies Curwt Service 01er Total
1985-86 $ 19,428 $ 27,798 $ 4,427 $ 1,974 $ 5,718 $ 14,143 $ 2,350 $ 736 $ 76,674
1986-87 23,087 28,885 4019 2A96 7,634 14,422 2.799 456 84298
1987-M 24.275 30,207 4.345 2,338 8,365 15.492 3.208 1,410 89,643
1988-89 26,970 30,736 6,773 2,458 13.884 21,721 5,886 2.731 110.159
1989-90 30,460 32,679 3,944 2.256 14.140 15,211 7,267 1,019 106,976
1990-91 33,697 32,092 3,629 1,904 11.854 27,243 8,341 2,012 120,772
1991-92 35,376 35.069 4,236 1,324 19,451 21,860 4,S99 3.192 125,197
1992-93 33.163 36,332 4,846 1,354 11,382 19,334 6,453 2.493 115.357
*1993-94 32,645 46,194 6,579 1,894 17,303 25,894 9,528 6221 146,158
1994-95 30,108 38,259 5,978 2.134 11,704 19.941 8.706 1,071 117.901
PROPERTYTAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS)
SECUREDTAXES UNSECUREDTAXES
TOTALLEVY COLLECTIONS AMOUNT PERCENT TOTAL LEVY COLLECTIONS AMOUNT PERCENT _
1985-96 $ 13,608 $ 12,781 $ 452 3.32% $ 1,130 $ 1,060 $ 40 3.64%
1986-87 15,089 14,448 572 3.79% 1,187 1,100 45 3.79%
1987-88 16,055 15,419 500 3.11% 1,250 1,180 46 3.63%
1988-89 16,963 16,346 493 2.91% 1,287 1,234 37 2.87%
1989-90 17,283 16,654 500 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%
1991-92 20,171 18,948 899 4.46% 1,646 1,525 63 3.83%
1992-93 19,060 17,847 853 4.48% 1,542 1,205 30 1.95%
1993-W 16.612 15,632 572 3.44% 1,2D5 1,106 56 4.65%
1994-95 16,781 16,300 481 2.87% 1,231 1,299 69 5.61%
RESERVIOR HILL MELLOatOOS
1989-90 $ 214 $ 211 $ 3 1.40%
1990-91 168 163 4 2,38%
1991-92 170 167 3 1.76% $ 264 $ 236 $ 27 10,23%
1992-93 191 187 3 1.67% 264 245 19 720%
•1993-94 180 175 4 2.22% 264 181 83 31.44%
1994-95 187 183 4 2.14% 264 25B 6 2.27%
' Fiscal Year 1993-94 is a fifteen month fiscal year.
Source:County of Orange Audhor Controller's Office
Note-Delinquency amount does not always equal levy amount minus collections
amount since there are always amounts collected from prior years
Page 99
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Corr rity Mary Norr
Services Services PL#Ac Works DeperbneMel Capbl Outlay DebtSevice Total
$ 5,668 $ 15,249 $ 6,796 $ 11,791 $ 1,847 $ 78,383
6,090 14,863 7,726 12,168 2,189 83,614
6,954 16,205 7,153 10,206 5,243 90,189
7,595 16,893 7,088 42,462 15,177 136,421
8,307 18,425 7,955 20,622 10,626 118,838
9,127 20,275 7,052 24,076 11,895 128.493
9,420 15,889 11255 39,069 48,643 183.094
7,228 2,775 16,633 21,488 17,328 9,397 138,572
9,892 3,513 20,802 10,787 22,228 18,699 168,059
7,D64 2,921 16,714 9,953 12,958 11,933 124,687
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CITY OF HUNTINGTON BEACH
CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSITS
LAST TEN FISCALYEARS
Number of Estimated Value of Barks and Savings
Brtl6ng Pencdt NewConAwion and LoanDeposils -
Permits Change (0005) Percert Change _ IMOS) _Pervert Charge
198"5 6,496 $ 142.336 1,843,295
t9a5-06 3.173 (51.2) $ 133,579 (6.15) 2.052.766 11A
t98G87 4.W8 29.2 $ 92,230 (30.95) 2,138,624 4.2
1987 88 4,666 13.9 S 177,297 92.23 2.395,503 12.0
198"9 5,039 8.0 $ 272,013 53.42 2,653,16E 10.8
1999.90 4,318 (14.3) $ 102.907 (62,17) 2,598,415 - (2.1)
1990-91 4.650 7.7 $ 76.175 (25.98) 2,803,740 7.9
t99f-92 5,041 8.4 $ 81,250 6.66 2.458,259 (12.3)
1992.93 10.400 106.3 $ 100,4W 23.57 2,455.333
199S-94 6.a" (34.2) $ 107.420 6.99 2,552,603 4.0
i 99495 4,471 (34.7) $ 84.388 (21.44)
Source-Community Development Department,City of Huntington Beach and the Findley
Reports on California Institutions
COMPUTATION OF LEGAL DEBT MARGIN
r t September 30,1995
(IN THOUSANDS)
L i
ASSESSED
f ; VALUATION $ 12.314,146
1
DEBT LIMFT:12%OF ASSESSED VALUATION 1,477,698 .
DEBT APPLICABLE TO LIMITATION:
{ NONE
i .
LEGAL DEBT MARGIN $ 1,477.698
a�ranir
Source-Administrative Services Department,City of Huntington Beach
STATEMENT OF DIRECT AND OVERLAPPING BONDED DEBT'
JUNE 30,1995
1994.95 Assessed Valuation-$11,900,268.293 after deducting$413,877,893 in redevelopment incremental valuation
i
XAppfeelte Debt @ NlOf95 .
Orange County(O.C.) 7.51% $ 44.327
O.C. Building Authorities 7.51% 42,762.043
( ! O.C.Transit Authority 7.51% 24,044,605
j Orange County Pension Obligations 7.51% 1.585,243
i O.C.Flood Control District 7.51% 82,245
Metropolitan Water District(MWD) 1,47% 9,221.773
MWD of O.C.Water Facilities Corporation 11.48% 10,120,542
i O.C.Sanitation Dist#3 COPS 11.55% 15,013,221
O.C.Sanitation Dist911 COPS 99-91% 26.095.416
O.C.Water District COPS 11.74% 24.401,859
Coast Community College District Authority 30.35% 4.216,914
4 Htg.Bch.union H.S.Dist.COPS 71.28% 787,633
Fountain Valley School District 28.43% 531,101
� ) City of Huntington Beach Building Authorities 100.OD% 47,319,826
City of Htg Bch Community Facilities District 10D.00% 2,320,000
t City of Htg.Bch.1915 Act Bonds 100.00% 1,3D5,0D0
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT 209,851,748
Less 100%SeV-Supporting (35,790,595)
TOTAL NET DIRECT AND OVERLAPPING $ 174,061.153
BONDED DEBT
( ` 1.)Excludes tax and revenue anticipation notes,mortgage revenue bonds
and non-bonded capital lease obligations
: ! Ratios to Assessed Valuation
i , Direct Debt 0.4D%
i Total Gross Debt 1.76%
Total Net Debt 1.46%
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j State School Building Aid Repayable at 6130195 $ 10.316,349
( 1994/95 Assessed Valuation$11,875,B85,395 after deducting S424,341,879 of
redevelopment incremental valuation
i Source-California Municipal Statistics
Page 102
CITY OF HUNTINGTON BEACH
DEMOGRAPHIC STATISTICS
CRY Populau-
as a Percent of _
Orange C"tY C—ty
Year Popuabon Percent Increase Square Was Population POPLeation
1910 815 3.57 34.436
1920 1,687 107.0% 3.57 61,375 2.75%
1930 3,690 118.7% 3.57 62,451 5.91%
1940 3,738 1.3% 3.57 130,760 2.86%
1950 5,158 38.0% 4.72 216,224 2.39%
1960 11,492 1228% 23.47 703,995 1.63%
1970 116,400 9t29% 26.73 1,420,386 8.19%
1980 172.200 47.9% 27.20 1.931.670 8.92%
1990 188,701 9.6% 27.20 2,362,211 7.99%
1991 181,155 -4.0% 27,20 2,453,277 7.38%
1992 182,353 0.7% 27.20 2.512,198 7.26%
1993 186.867 2.5% 27-M 2557,346 7.31%
1994 189,159 1.2% 27,20 2,596,511 7.29%
1995 189,795 0.3% 27.2D 2,627.949 7.22%
Source-Administrative Services Department,City of Huntington Beach
TOP TEN SECURED PROPERTY OWNERS
SEPTEMBER 30,1999
Percent of
Assessed Valuation Teal
McDonnel Douglas Corporation $ 289,132,886 2.47%
Shell oil Company 76,025,403 0.65%
Macerich California Associates Ltd 63,982,670 0.55% _
Richard Battaglia Trust 43,541,401 0,37%
VAterRontConstruction 29,500,000 0.25%
Liu Corporation 22,681,455 0.19%
Ox Pierslde Corporation 21.000,000 OAS%
Bentall Properties 20,779,669 0.18%
Huntington Breakers Apartments Ltd. 18,294,078 0.16%
Brodero Huntington Beam Inc. 14,433,137 0.12%
Total $ 59%370,699 5.12%
Source-HDL Caren,Cone
MISCELLANEOUS STATISTICS
SEPTEMBER 30,1995
Yea.of Irrrcrpoxbon 1909
Charter City-City
Council-City
Form of Gwesnmt Administrator
Ana 27.2 Square Miles
PopLiabon 189,159
nags orsb■.ts 370
Mmber of Moot UgMs 14,350
Fin:Protection
Maroer of stations 7
Martnw of Fi llmers 142
Peite Protecdon:
M■nber ar staling 4
M■rtw of shorn Poice Officers 239
Wmarpal water D"aftwit:
M■ebw of Customers 48,000
Average Dory Corsurptfm 35.0 Million Gallons
Was of water Mains 490
Pubic works:
SarjUry sewers 340 miles -
Storm sewers 31 mites
Rocrsakon and Cetus:
Menbw of Parks 57
Park Ae sape Davelnp■d 555 '
Mass of 111—h 3.4
Amty)llsach Msitors 7,000,OOD
Minbw of Libraries 4
vakvms in Lilwarie: 353,671
FdFtime Frrpwys" 1.039
Source-Administrative Services Department,City aI Huntington Beach
Page 103