HomeMy WebLinkAbout1998/1999 Comprehensive Annual Financial Report - CAFR - wit CITY OF
HUNTINGTON BEACH ,
CALIFORNIA
COMPREHENSIVE ANNUAL
FINANCIAL RE-PORT
For the Fiscal Year Ended September 30, 1999
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§ CITY OF HUNTINGTON BEACH, CALIFORNIA
\ COMPREHENSIVE ANNUAL FINANCIAL REPORT )
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{ . CERTIFIED PUBLIC ACCOUNTANTS )
SEPTEMBER3Q 1999
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CITY OF HUNTINGTON BEACH
TABLE OF CONTENTS
September 30, 1999
Page
Number
INTRODUCTORY SECTION:
Table of Contents
Letter of Transmittal iv-xii
City Officials xiii
Organization Chart xiv
Financial Reporting Certificate xv
FINANCIAL SECTION:
Independent Auditors' Report 1 - 2
Combined Balance Sheet-All Fund Types and Account Groups 3 -4
Combined Statement of Revenues,Expenditures and Changes in
Fund Balances-All Governmental Fund Types and Expendable
Trust Fund 5-6
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual-General, Special Revenue
and Debt Services Fund Types 7-9
Combined Statement of Revenues,Expenses and Changes in
Retained Earnings-All Proprietary Fund Types 10
Combined Statement of Cash Flows-All Proprietary Fund Types I I
Statement of Changes in Plan Net Assets—Pension Trust Fund 12
Notes to Financial Statements 13 -65
SUPPLEMENTARY INFORMATION—COMBINING FINANCIAL STATEMENTS
AND SCHEDULES OF INDIVIDUAL FUNDS AND ACCOUNT GROUPS:
General Fund: 66
Comparative Balance Sheet 67
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 68
Special Revenue Funds: 70
Combining Balance Sheet 71 -72
Combining Statement of Revenues,Expenditures and
Changes in Fund Balances 73 -74
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual:
Gas Tax Fund 75
Sewer Fund 76
Drainage Fund 77
Public Communications Fund 78
Grants Fund 79
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CITY OF HUNTINGTON BEACH
TABLE OF CONTENTS
(CONTINUED)
September 30, 1999
Page
Number
SUPPLEMENTARY INFORMATION—COMBINING FINANCIAL STATEMENTS
AND SCHEDULES OF INDIVIDUAL FUNDS AND ACCOUNT GROUPS
(CONTINUED):
Special Revenue Funds(Continued): 70
Statement of Revenues, Expenditures and Changes in
Fund Balance- Budget and Actual(Continued):
Park Acquisition and Development Fund 80
Narcotics Forfeiture Fund 81
Transportation Fund 82
Air Quality Fund 83
Traffic Impact Fee Fund 84
Fourth of July Parade Fund 85
Library Service Fund 86
Debt Service Funds: 88
Combining Balance Sheet 89-90
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 91 -92
Statement of Revenues, Expenditures and Changes in
Fund Balance- Budget and Actual:
Redevelopment Agency Fund 93
Public Financing Authority Fund 94
Reservoir Hill Fund 95
Civic Improvement Fund 96
Capital Projects Funds: 98
Combining Balance Sheet 99- 100
Combining Statement of Revenues,Expenditures and
Changes in Fund Balances 101 - 102
Enterprise Funds: 104
Combining Balance Sheet 105- 108
Combining Statement of Revenues,Expenses and
Changes in Retained Earnings 109- 110
Combining Statement of Cash Flows 111 - 112
Internal Service Funds: 114
Combining Balance Sheet 115 - 116
Combining Statement of Revenues,Expenses and
Changes in Retained Earnings 117 - 118
Combining Statement of Cash Flows 119- 120
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CITY OF HUNTINGTON BEACH
TABLE OF�CONTENTS
(CONTINUED)
September 30, 1999
Page
Number
SUPPLEMENTARY INFORMATION—COMBINING FINANCIAL STATEMENTS As
AND SCHEDULES OF INDIVIDUAL FUNDS AND ACCOUNT GROUPS
(CONTINUED):
Trust and Agency Funds: 122
Combining Balance Sheet—All Agency and Trust Funds 123 - 124
Combining Statement of Changes in Assets and Liabilities-
All Agency Funds 125- 126
Statement of Plan Net Assets—Retirement Supplement Trust Fund 127
Statement of Changes in Plan Net Assets—Retirement Supplement
Trust Fund 128
Balance Sheet--Employee Deferred Compensation Trust Fund 129
Statement of Revenues,Expenditures and Changes in Fund
Balance—Employee Deferred Compensation Trust Fund 130
General Fixed Assets Account Group: 132
Schedule of General Fixed Assets 133
Schedule of Changes in General Fixed Assets by Function
and Activity 134
Schedule of General Fixed Assets by Function and Activity 135
General Long-Term Debt Account Group: 136
j Schedule of Changes in General Long-Term Debt 137
`i STATISTICAL SECTION:
I Schedule of Expenditures by Function—Governmental and
Expendable Trust Funds- Last Ten Fiscal Years 138
Schedule of Revenues by Source—Governmental and
Expendable Trust Funds-Last Ten Fiscal Years 139
Property Tax Levies and Collections-
Last Ten Fiscal Years 140
Assessed and Actual Value of All Taxable Property-
Last Ten Fiscal Years 141
Property Tax Rates—All Direct and Overlapping Governments
Tax Rate 04-001 Largest Area in City-Last Ten Fiscal Years 142
General Obligation Bonded Debt Ratios-Last Ten Fiscal Years 143
Schedule of Construction Activity and Bank and Savings and
Loan Deposits--Last Ten Fiscal Years 144
Computation of Legal Debt Margin 145
Statement of Direct and Overlapping Bonded Debt 146
Demographic Statistics 147
Top Ten Property Taxpayers 148
Miscellaneous Statistical Information 149
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I,µ
• CITY OF HUNTINGTON BEACH
J .
Administrative Services Department
` 2000 Main St.
Huntington Beach, CA 92648
The Honorable Mayor, City Council Members, and Citizens 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, 1999. The data contained herein 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, Diehl, Evans and Company.LLP.
This report is organized into three sections:
• Introductory-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 contains summary information about the City generally
presented on a multi-year basis.
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MAJOR INITIATIVES
For the Year- 1998199 saw continued economic growth and expansion in Huntington Beach. Site
clearance and preparation was completed for the Grand Coast Resort and Conference Center, which
will further reinforce Huntington Beach as a destination resort and meeting locale. Downtown
development continued with Plaza Almeria, a unique mixed-use commercial and residential project
substantially competed. Another mixed-use project with retail, restaurants and a hotel was approved
for Blocks 104 & 105, a site overlooking the.Pier .and Pacific Ocean. A new property owner took
control of Huntington Center and announced plans for a major entertainment and lifestyle oriented
open-air project. Industrial development continues on an accelerated pace with the McDonnell
Center Business Park nearing build-out with 1,850,000 square feet of high quality building housing
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more than 1600 employees, including the new regional headquarters of Konica. Boeing also
continues to expand, adding nearly 3,000 engineering and professional employees to their Huntington
Beach campus. The West County Commerce Center saw two new building .completed, with one
becoming the headquarters of Quicksilver. New residential development also saw a strong year,
driven mostly by the continued success of the Seaciiff communities.
The Future- Huntington Beach is primarily a residential community. The City's coastal location
provides unique challenges in developing a mix of tourism, industrial, residential and commercial
development for the 21st Century. This requires the efforts not only of local government but also of
residents, businesses, and developers. The City is committed to ensuring that all future development
in Huntington Beach will be economically and environmentally sound.
Despite the strong national and local economy, we must remain vigilant in protecting and enhancing
the City's tax base as well as protecting City revenue from the State of California. Over the past
decade, State action continually chipped away at City revenue sources to balance the State budget.
If the economy deteriorates, the State may again attempt to raid City revenue sources.
Huntington Beach is now 90 years old. A significant amount of the City's infrastructure (especially
sewers, water mains, etc.) is in need of repair and/or replacement expecting to cost $1.2 billion over '
the next 30 years. While the City has secured funding for half of this cost, it will be a major challenge
to fund the remaining amount.
In October, 1999 the City Council approved the Business Enhancement Application for the City of
Huntington Beach Program (B.E.A.C.H Project) which will replace all of the City's business systems
with state-of-the-art software along with reviewing all of the City's business processes. The end
result will be better financial information given to the decision makers.
FINANCIAL INFORMATION
The City prepares financial statements on the modified accrual basis for all governmental fund types
and on the accrual basis for the proprietary fund types. The City$ system of internal control protects
City assets while ensuring that the cost of controls does not exceed the expected benefits.
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Bud_geting 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. Budgetary control is at the departmental
level. A department head, with the Finance Director's approval, can transfer funds within like object
categories of the same department. The City Administrator can transfer funds from one object
category to another without increasing the total budget of a fund. The City Administrator must
approve any changes to capital outlay requests. The City utilizes an encumbrance system as a
management control technique. Encumbrances are orders, or contracts, for goods or services not yet
completed or received. The City reports these as reservations of fund balance in governmental fund
types.
FINANCIAL SUMMARY
General Fund Revenue- Total General Fund revenue, including one-time revenue, increased
$7,485,000 or 6.9% from the prior year. Below is a table analyzing the revenue along with an
explanation of major changes (greater than 5% and $500,000):
$in thousands
Amount $ Increase %Increase
1998199 (Decrease) (Decrease) %of Total
Property Taxes $29,320 $1,298 4.7 25.3%
Other Taxes 46,419 3,745 8.8 40.1%
Licenses and Permits 7,050 521 8.0 6.1%
Fines and Forfeitures 2,744 95 3.6 2.4%
From Use of Money and Property 6,379 (799) (11.1) 5.5%
From Other Agencies 11.780 1,252 11.9 10.2%
Charges for Current Service 9,076 (586) (6.1) 7.8%
Other 2,899 1,959 172.3 2.5%
$115,667 $7,485 6.9 100.0%
Property and other taxes increased due to rising property values and a strong economy.
Revenue from the use of money and property decreased due to reduced interest income
from investments and interest received from the Redevelopment Agency on interfund loans.
Revenue from other agencies increased largely due to increased VLF fees. Revenue from
charges for current service decreased because large developments were completed in
1997/98. Other revenue increased due to the Coca-Cola sponsorship, new bus shelter
agreement, and a $1.7 million refund relating to the City's insurance premiums.
General Fund Expenditures -Total General Fund expenditures decreased $369,000 or
0.4%. Below is a table analyzing General Fund expenditures with an explanation of major
changes (greater than 5% and$500,000):
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$in thousands
Amount $ Increase WIncrease
1998199 (Decrease) (Decrease) %of Total
City Council $ 275 $ 68 32.9 0.3%
City Administrator 1,114 420 60.5 1.1%
City Treasurer 820 15 1.9 0.8%
City Attorney 1,720 199 13.1 1.7%
City Clerk 474 40 9.2 0.5%
Administrative Services 2,876 (180) (5.9) 2.8%
Community Development 4,067 148 3.8 3.9%
Fire 15,545 (817) (5.0) 15.1%
Police 33,728 220 0.7 32.7%
Community Services 7,628 488 6.8 7.4%
Library G
ra Services 2 957 221 8.1 2.9/o
Public Works 16,893 102 0.6 16.4%
Non-Departmental 12,825 (989) (6.9) 12.4%
Capital Outlay 1,303 (295) (18.5) 1.3%
Debt Service 825 (9) (1.1) 0.8%
i $ 103,050 $ (3$9) (0.4) 100.0%
Fire Department expenditures decreased due the moving of the ambulance program from the
General Fund to the Firemed Fund. Non-Departmental expenditures decreased because of
! one-time expenses incurred in 1997/98.
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Fund Equity- Below is a summary of fund equity with explanation of major(dollar amounts in
thousands):
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Percent
Total Equity Total Equity Increase
GENERAL FUND 1998/99 1997198 (Decrease)
Reserved $ 23,628 $ 23,807 (0.8)
Unreserved/Designated 9,035 5,022 79.9
Unreserved/Undesignated 10,256 3,976 157.9
Total $ 42,919 $ 32,805 30.83
Percent
Total Equity Total Equity Increase
TOTAL GOVERNMENTAL FUNDS 1998199 1997198 (Decrease)
Reserved $ 85,029 $ 80,368 5.8
Unreserved/Designated 15,419 13,525 14.0
Unreserved/Undesignated 21,588 25,528 (15.4)
Total $ 122,036 $ 119,421 2.19
Percent
Total Equity Total Equity Increase
TOTAL PROPRIETARY FUNDS 1998199 1997198 (Decrease)
Contributed Capital $ 37,650 $ 33,813 11.3
Retained Earnings 44,060 39,332 12.0
Total $ 81,710 $ 73,145 11.71
The General Fund's unreserved, undesignated fund equity increased due to the large
operating surplus for 1998/99. The General Fund unreserved, designated increase was due
to the budget for the B.E.A.C.H. Project, which the City Council approved in October, 1999
which will replace the City's business systems.
PROPRIETARY FUNDS
Enterprise funds are supported through user fees to the public. These fund's activity during the year
was:
Vill
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$In Thousands
Water Fund Emerald Cove Housin
ENTERPRISE FUNDS 1998-99 1997-98 1998-99 1997-98
Operating Revenues $ 19,130 $ 20,974 $ 664 $ 642
j Operating Income(Loss) (1,889) (536) 248 283
Net Income(Loss) (74) 785 (45) Ill
Emer enc Fire Medical Refuse Collection
1998-99 1997-98 1998-99 1 1997-98
Operating Revenues $ 3,596 3,646 $ 8,554 $ 8,661
Operating income(Loss) 89 698 (285) 67
Net Income(Loss) 132 698 (283) 67
{{ Hazmat Service Cultural Affairs
4.'
j 1998-99 1997-98 1998-99 1997-98
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Operating Revenues $ 82 217 $ 104 258
Operating Income(Loss) (14) 136 (229) (138)
Net Income(Loss) (23) 136 (84) (49)
Staff will continue to study user fees and rates relating to these funds to ensure that costs are
recovered.
Internal service funds are supported by charges to user departments in the City. These funds' activity,
during the year was:
$!n Thousands
Medical Workers Com ensation
r INTERNAL SERVICE FUNDS 1998-99 1997-98 1 , 1998-99 1 1997-98
Operating Revenues $ 5,582 $ 5,863 $ 2,789 $ 3,573
Operating Income(Loss) 776 548 (518) 1,210
Net Income(Loss) 776 548 (515) 1,210
(Equipment
General Liability Replacement
1998-99 1 1997-98 1998-99 1 1997-98
ii Operating Revenues $ 3,763 $ 2,560 $ 2,560 $ 3,971
Operating Income(Loss) 2,483 (1,810) (787) 251
Net Income(Loss) 2,651 (1,886) (86) 236
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The insurance funds are now on their way back to financial health. Staff will continue to study rates
and available funds to ensure that adequate reserves are rebuilt.
Pension Obiicrations - The City participates in the California Public Employee's Retirement System.
At June 30, 1998, which is the most recent information available from PERS, the City's total future
pension obligation for all current and retired employees was $331,065,000 and assets available for
these obligations were $411,M,000, leaving a surplus of$80,216,000
The City also maintains a supplemental retirement plan. An independent actuary conducted a study
of this plan for the year. The annual required contribution for this plan was $2,613,000 while the City
contributed $1,559,000. The unfunded liability for this plan was $24,439,000.
Trust and A iency Funds -. The City's Trust and Agency funds consist largely of the Retiree Medical
Fund, the Retirement Supplement Fund, the Central net Operations Authority and a portion of the
City's deferred compensation plan. The total assets of these funds increased by $1,020,000, or
10:6%. This was due largely to an increase in the assets of the Retirement Supplement Fund of
$853,000.
Debt Administration-The City's outstanding long-term debt was (in thousands):
Bonds:
Reservoir Hill Assessment District Bonds $ 1,030
1992 Public Financing Authority Bonds 21,275
1997 Public Financing Authority Bonds 7,440
1999 Redevelopment Agency Tax Allocation Refunding Bonds 10,340
Certificates of Participation:
Emerald Cove Housing 5,105
Civic Improvement Corporation 31,955
Notes Payable:
Energy Conservation 451
Redevelopment Agency 308
Other Debt:
Self-Insurance Claims 9,982
Leases Payable 1,633
Pension Obligation 7,244
Advances to Other Funds (Redevelopment Agency) 59,897
Advances to Other Funds 244
Compensated Absences 5,846
Mayer Disposition and Development Agreement 10,142
Total $172,892
The City's legal debt limitation for general obligation bonds is 12% of the total of assessed valuation
in the city. The City currently has no general obligation bonds outstanding so the legal debt margin is
over $1.5 billion.
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Moody's Investor's Service rates obligations as to their safety as an investment. The City received a
rating of (Al) on the Civic Improvement Corporation Certificates of Participation and a rating of (Baa)
on the Public Financing Authority 1992 Revenue Bonds.
Notes 12 and 13 to the General Purpose Financial Statements include further information on the
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City's long-term debt.
Cash Management- The City Treasurer invests surplus cash in authorized investment allowable by
the government code and City policy. The City forecasts revenues and expenditures to maximize
i' interest income and maintain enough cash to meet current obligations. During 1998/99 the
! 't investment of non-restricted cash and investment yielded interest of$4,975,997, or 5.61%.
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The California Government Code requires the City Treasurer to prepare an annual statement of
investment policy, quarterly report showing. compliance with the City's investment policy, and
�f information on the City's investments. The City Treasurer complied with this law. Note 3 to the
General Purpose Financial Statements shows further information on the City's cash and investments.
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Risk Management- The City is self-insured for liability, worker's compensation and employee health
claims. The City is a member of the Big Independent Cities Excess Pool (BICEP) which provides
coverage for liability claims in excess of $1 million through pooling and private insurance. The City
also maintains private insurance coverage for worker's compensation and employee health claims in
over a certain amount.
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Other Information- The Single Audit Act of 1984 requires special audit procedures and reports for
the activities that use Federal funds (either directly or passed through from other governmental
agencies). Copies of this audit are available from this office.
This report includes the financial activity of separate legal entities whose activities the City controls.
These entities are the:
r Redevelopment Agency of the City of Huntington Beach
• Huntington Beach Public Financing Authority
• Huntington Beach Civic Improvement Corporation
• 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.
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Financial Reporting Certificates - The City prepares easily readable and efficiently organized
Comprehensive Annual Financial Reports. The Government Finance Officer's Association (GFOA)
awarded the City a Certificate of Achievement for Excellence in Financial Reporting, which is the
highest form of recognition for municipal financial reporting for its September 30, 1998 report. The
certificate is valid for a period of one year only. The City of Huntington Beach has received the
Certificate of Achievement for the past 13 fiscal years. The GFOA awards the certificate to
governmental agencies whose reports conform with high standards of public financial reporting. We
believe that this year's report conforms to the GF_OA's award program requirements and we will
submit it to them for review.
Acknowledgments - We wish to thank the City Council and the City departments for responsibly
conducting the fiscal affairs of Huntington Beach. We would also like to thank Robert Sedlak,
Principal Accountant for his work in the preparation of this report.
Sin rely, 17�� ,,f
John Reekstin, Dan T. Villella,
Director of Administrative Services Director of Finance
xii
CITY OF HUNTINGTON BEACH
PRINCIPAL CITY OFFICIALS
CITY COUNCIL
Dave Garofolo, Mayor
Tom Harman, Mayor Pro-Ten
Ralph Bauer, Councilmember
Shirley Detloff, Councilmember
# Peter Green, Councilmember
Pam Julien, Councilmember
Dave Sullivan, Councilmember
OTHER ELECTED OFFICIALS
Connie Brockway, City Clerk
Gail Hutton, City Attorney
Shari Freidenrich, City Treasurer
ADMINISTRATIVE OFFICIALS
Ray Silver, City Administrator
Melanie Fallon, Assistant City Administrator
Robert Beardsley, Public Works Director
°.IDavid Biggs, Director of Economic Development
,.; 9g � P
Ross Cranmer, Building Director
s1 Michael Dolder, Fire Chief
Ron Hagan, Community Services Director
Ron Hayden, Library Services Director
I a Ron Lowenberg, Police Chief
John Reekstin, Director of Administrative Services
Howard Zelefsky, Planning Director
f
xiii
CITY OF HUNTINGTON BEACH
THE PEOPLE
CITY COUNOII. CITY
Mayor Peter Green WY ATTORNEY
cmr CLERIC Mayor Pro Tern Dave Garofalo TREASURER ��
IConnle Brockway y Shari Fretdenricb Gad Hutton
Council Members Sauer,Dettloff,Harman,Julien,Sullivan
Investrnegls
CITY
ADMINISTRATOR sines Lken:
ADMINISMUVE Ray Silver.
ORABIZATIO"L SERVICES PUBLIC ACCOunh
EFFECTIVENESS John Reekstin INFORMATION Receivable
Clay Martin Rich BWnad
Finance L ASSISTANT CITY
Dan VilMlla ADMINISTRATOR Mtrnidpa!Services
Risk Managermnt Melanie Fallon Bi1Bnq!
Kan Fostar Central Cashiering
Ce Wal sweea
Rick Amer"
Human Rewunwa
Ulliam oanm
Real Properly
M&Lamb
How+rd NLelereky BUIi DING i ECONOMIC MYSEFOU110ES ME
Ro"I F.Beardsley COMMU H SERVICES Ron Hayden WksDom► Ron lawanbry -
sPFETY DEVELOPMENT
Ross Cranrner flavid Biggs
Planner RobertEich6lalt iFea'ItleaDweiognrd BeadmmPubfcSarvlCe D Prawntlon CaPlairi
ftecr
Sca[LHeq MemW ParmkiPln Redavebgnardi � &k
CheekSarvieu �aMg ���
Khanh Nguyen Gus Dorn Water
Ow„s Maciain Sapport SerNaa Churl Reynohla Admintahatlon pialeion
Comm {Inerlm} SpoftRemotiont CaptalnJhnCu4haw
Planning 6ueEnese HWruln SIMM
Herb Fauland Inepectlea Oil Fowler En+ 7 W*"
B,p Park7mi Chv*BWM InyefypabonOMNon
Captain Ed NaMn
Planning
JohniV n0edaln cukunlaHim" Talaea+eramlutlana
SWAM Ched Whha
Planning
May BeCr Mld+ael Yud6 �_�dOM1s
emww Mainanana Captain Jon Amid
Don NobN kdarmatlorl
Coda TrentporfaUprr
Enforeamert Tom&ehard
Mik!5tn++ga
(Irderim}
112WOO
ORGANIZATIONAL CHART
xiv
is
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Huntington Beach,
California
3i
For its Comprehensive Annual
Financial Report
i
for the Fiscal Year Ended
September 30, 1998
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
! LE
�Z
NUB STA
I ui AND
MW C2President
z� caano��
Executive Director
xv
FINANCIAL SECTION
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS& CONSULTANTS
MICHAEL R.LUDN.CPA
CRAIG W. SPRAKER.CPA
A PARTNERSHIP INCLUDING ACCOU\TAvCY CORPORATIONS \ITIN P.PATEL.CPA
•PHILIP H.HOLTKAMP,CPA
2121 ALTON PARKWAY,SUITE 100 'THOMAS M.PERLOWSKI.CPA
H J.SCHROEDER.CPA
A PROFESSI
IRVINE,CALIFORNIA 92606-4906 ' MfUSI
• OtiAt CARPO0.{TIO?s
(949)399-0600• FAX(949)399-0610
March 3, 2000
11 INDEPENDENT AUDITORS' REPORT
€.p
City Council
:,. City of Huntington Beach
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, 1999 as listed in the accompanying table of contents. These
general purpose financial statements are the responsibility of the City's management. Our responsibility
it
is to express an opinion on these general purpose financial statements based on our audit.
E:I
We conducted our audit in accordance with generally accepted auditing standards and the standards
e:
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
jreasonable 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
Is
disclosures in the general se financial statements. An audit also includes assessing the accounting
I, 1 s e g purpose g g
principles used and significant estimates made by management,as well as evaluating the overall general
li purpose financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
III
In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects,the financial position of the City of Huntington Beach, California,as of September 30, 1999 and
i' the results of its operations and cash flows of its proprietary fund types for the year then ended in
1 conformity,with generally accepted accounting principles.
I� In accordance with Government Auditing Standards,we have also issued our report dated March 3, 2000
on our consideration of the City of Huntington Beach's internal control over financial reporting and our
tests of its compliance with certain provisions of laws,regulations,contracts and grants.
+ 1 _
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W.VALLEY PARKWAY,SUITE 330
CARLSBAD,CALIFORNIA 92008-2389 ESCONDIDO,CALIFORNIA 92025.2598
(760)729-2343•FAX(760)729-2234 (760)741-3141•FAX(760)741-9890
i
Our audit was made for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The financial statements of the combining individual funds and account group
statements listed in the '.able of contents under supplementary information are presented for purposes of
additional analysis and are not a required part of the general purpose financial statements of the City of
Huntington Beach. The information has been subjected to the auditing procedures applied in the audit of
the general purpose financial statements and, in our opinion, is fairly stated in all material respects in
relation to the general purpose financial statements taken as a whole. The statistical information listed in
the table of contents is not a required part of the basic general purpose financial statements,and we did not
audit or apply limited procedures to such information and do not express any assurance on such
information.
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CITY OF HUNTINGTON BEACH
COMBINED BALANCE SHEET-ALL FUND TYPES AND'ACCOUNT GROUPS'
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Governmental Fund Types
j,. Special Debt Capital
ASSETS AND OTHER DEBITS General Revenue Service Projects
1 Cash and investments(Notes le and 3) S, 10,069 S 14,509 $ 2,624 $ 10,425
Cash and investments with fiscal agent(Note 3) - - 6,572 315
Taxes receivable(Note 11) 14,697 326 1,299 60
Other receivables 1,088 4,768 233 3,601
Unbilled receivables(Note ib) 660 - -
Inventory(Note Ig) 476 - - -
Due from other funds(Note 10) 200 377 l - 484
Deposits and other assets - 2,851 - -
Advances to other funds(Note 10) 25,751 6,045 19,324 2,493
Investment in Joint Venture(Note 18) - - - -
1 i Land held for resale(Note If) - - - 17,018
Property,plant and equipment-net(Notes I f and 15) - - -
l:rl
General fixed assets(Notes If and 15) - - - -
Amount available for payment of long-term debt(Note 16) - - - -
Amount to be provided for payment of long-term debt - - - -
! TOTAL ASSETS AND OTHER DEBITS 52,941 28;876 30,052 S 34,395
it LIABILITIES,EQUITY AND OTHER CREDITS
i LIABILITIES:
Accounts payable $ 4,366 $ 801 $ 73 $ 452
Other accrued 1'rabilities - 71 - 32
Deposits 626 - - 129
Due to other funds(Note 10) - 378 - 499
Deferred revenue(Note 5) 5,030 10,849 - 924 -
Funds held for others - - -
� ' Advances from other funds(Notes 10, 12 and 13) - - - -
Leases payable(Notes 13 and 15) - - -
Claims payable(Note 9) - - -
Compensated absences(Notes I J, 12 and 13) - -
Long-term debt(Notes 12 and 13) - - -
TOTAL LIABILITIES 10;022 12,099 73 2,036
EQUITY AND OTHER CREDITS:
Investment in general fixed assets - - -
g -
Contributed capital(Note 11) - - -
Retained earnings(Notes 16 and 19).,
Unreserved - - - -
Fund balances(Notes 16 and 19):
Reserved 23,629 4,030 29,979 27,392
Unreserved-designated 9,035 3,935 - 2,449
j Unreserved-undesignated 10,256 8,813 - 2,519
TOTAL EQUITY AND OTHER CREDITS 42,919 16,779 -29,979 32,360
TOTAL LIABILITIES,EQUITY
AND OTHER CREDITS S 52,941 $ 28,876 $ 30,052 S 34,396
See independent auditors'report and notes to financial statements.
-3
Fiduciary
Proprietary Fund Types Fund Types Account Groups Totals(Memorandum Only)
Trust General General
Internal and Fixed Long-Term
Enterprise Service Agency Assets Debt 1999 1998
$ 24,237 $ 7,781 $ 9,253 $ - $ - $ 78,898 $ 63,425
459 1,084 850 - - 9,280 9,411
- 16,382 14,371
3,253 411 479 - - 13,833 8,434
3.084 - - - - 3,744 4.630
892 - - - - 1,368 1,304
1,301 865 138 - - 3.365 1,995
- 685 - - - 3,536 3,593
6,528 - - - - 60,141 67,507
264 - - 1,135 - 1.399 1,338
- - - - - 17,018 18,513
40,831 15,172 - - - 56,003 56,720
146,942 - 146,942 145,367
10,655 10,655 9,567
144,890 144,890 142,871
$ 80,849 $ 25,998 $ 10,720 $$ 148,077 $ 155,545 $ 567,454 $ 549,046
$ 2,156 $ 1,235 $ 8 $ - $ - $ 9,091 $ 5,910
224 30 11 - - 368 4,102
1,657 - 2,251 - - 4,663 5,750
1,456 1,032 - - - 3,365 2250
- - - 16,802 1,995
3,961 - - 3,961 67,507
244 - - - 59,897 60,141 3,886
46 1,587 - - - 1,633 12,060
- 9,982 - - - 9,982 11,774
333 50 - - 5,463 5,846 85,021
5,105 - - - 90,185 95,290 5,698
11,221 13,916 6,231 - 155,545 211,142 205,953
- - - 148,077 - 148,077 146,503
33,610 4,040 - - - 37,650 33,813
36,018 8,042 - - - 44,060 39,332
4,489 - - 89,518 86,102
15,419 12,346
- - - - - 21,588 24,997
69,628 12,082 4,489 148,077 - 356,312 343,093
$ 80,849 $ 25,998 $ 10,720 $ 148,077 $ 155,545 $ 567,454 $ 549,046
-4-
CITY OF HUNTINGTON BEACH
COMB[NED.STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES-ALL GOVERNMENTAL FUND TYE ES AND EXPENDABLE TRUST FUND
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Special
General Revenue
REVENUES:
3 Property taxes(Note 1) $ 29,320 $
Other taxes 46,419 1,571
€ Licenses and permits 7,050 3,178
i Fines,forfeitures and penalties 2,744 -
From use of money and property 6,379 682
From other agencies 11,780 11,676
Charges for current service 9,076 479
l Other 2,899 1,296
TOTAL REVENUES 115,667 18,882
EXPENDITURES:
Current:
g City Council 275 -
tY -
City Administrator 1,114 455
City Treasurer 820 -
e
City Attorney 1,720 -
''' City Clerk 474 -
Administrative services 2,876 -
V�; Community development 4,067 -
ix
Fire 15,545 94
Police 33,728 615
Economic development - 2,174
y" Community services 7,628 716
Library services 2,957 286
I: Public works 16,893 1,372
Nondepartmental 12,825 -
Capital outlay 1,303 8,060
}� Debt service(Note 12):
Cost of issuance
Issuance discount - -
Principal -
Interest 825 -
j TOTAL EXPENDITURES 103,ZW 13,772
a
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 12,617 5,110
OTHER FINANCING SOURCES(USES):
Proceeds of long-term debt(Note 12) - -
1 }. Operating transfers in(Note 10) 2,038 1,122
Payment to escrow agent - -
Operating transfers out(Note 10) (4,541) (2,242)
TOTAL OTHER FINANCING SOURCES(USES)
EXCESS OF REVENUES AND OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES 10,114 3,990
FUND BALANCES AT BEGINNING OF YEAR 32,805 12,788
FUND BALANCES AT END OF YEAR. $ 42,919 $ 16,778
See independent auditors'report and notes to financial statements.
5-
y
Fiduciary
Fund Type
Debt Capital Expendable Totals(Memorandum Only_)
Service Projects Trust 1999 1998
$ 5,025 $ - $ - $ 34,345 $ 32,477
- 767 - 48,757 44,895
299 - 10,527 8,848
- - - 2,744 2,649
2,388 1,464 - 10,913 12,614
- 1,297 - 24,753 21,539
- 2 - 9,557 10,147
30 275 14 4,514 3,798
7743- 4,104 1 146,110 1 ,
275 207
- - 1,569 1,092
- 820 805
249 - 1,969 2,340
- - - 474 434
- - 2,876 3,056
4,067 3,919
15,639 16,368
34,343 34,127
1,424 - 3,598 3,452
95 - 8,439 7,723
267 - 3,510 3,212
22 - 18,287 18,686
32 41 31 12,929 I4,919
- 11,376 - 20,739 15,894
361 - - 361 -
139 - - 139 -
11,560 51 - 11,611 2,313
11,122 4,707 - 16,654 9,648
. 1 138,195
(15,771) (14,128) (17) (12,189) (1,228)
15,542 10,142 - 25,684 1,179
3,466 1,168 - 7,794 12,494 3
(10,001) - - (10,001) -
(968) (1,302) - (9,053) (12,852)
8,mg 10,00T 4'
(7,732) (4,120) (17) 2,235 (407)
37,711 36,480 378 120,162 120,569
$ 29,979 $ 32,360 $ 361 $ 122,397 $ 120,162
-6-
r
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
GENERAL,SPECIAL REVENUE AND DEBT SERVICE FUND TYPES
For the year ended September 30, 1999
(In Thousands)
General Fund
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property taxes S 27,869 S 29 1,451-
Othertaxes 42,280 46,419 4,139
Licenses and permits 5,846 7,050 1,204
a' Fines,forfeitures and penalties 3,094 2,744 (350)
I From use of money and property 6,170 6,379 209
i From other agencies 9,976 11,780 1,804
'i Charges for current service 9,678 9,076 (602)
Other 1,002 2,899 1,897
TOTAL REVENUES 105,915 115,667 9,752
'a EXPENDITURES:
r� Current:
City Council 260 275 (15)
City Administrator 1,154 1,114 40
City Treasurer 920 820 100
City Attorney 1,694 1,720 (26)
City Clerk 551 474 77
Administrative services 3,067 2,876 191
Community development 4,322 4,067 255
Fire 16,583 15,545 1,038
' Police 34,930 33,728 L,202
Economic development - - -
:!, Community services 7,551 7,628 (77)
Library services 2,895 2,957 (62)
Public works 17,799 16,893 906 _
I Nondepartmental 9,113 12,825 (3,712)
Capital outlay 3,779 1,303 2,475
Debt service:
Cost of issuance - -
Issuance discount - -
Principal - - -
Interest 894 825 69
TOTAL EXPENDITURES 105,511 103,050 2,461
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 404 12,617 12,213
OTHER FINANCING SOURCES(USES):
Proceeds of long-term debt - -
Operating transfers in 1,915 2,038 123
Payment to escrow agent - - -
Operating transfers out (7,717) (4,541) 3,176
TOTAL OTHER FINANCING SOURCES(USES) (5,802) (2,503) 3,299
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
I k,.
AND OTHER FINANCING USES (5,398) 10,114 15,512
E�
g
FUND BALANCES AT BEGINNING OF YEAR 32,805 32,805
FUND BALANCES AT END OF YEAR S 27,407 $ 42,919 $ 15,512
See independent auditors'report and notes to financial statements.
-7-
h�.
Special Revenue Funds Debt Service Fund
anance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
4,75
1,525 1,571 46 - - -
1,130 3,178 2,048 - - -
524 682 158 3,789 2,388 (1,400)
16,112 11,676 (4,436) - - -
390 479 89 - - -
1,689 1,296 (393) - 30 30
21,370 18,882 (2,488) 8,544 7,443 (1,101)
352 455 (103) - - -
63 94 (31) - - -
1,229 615 614 - - -
3,625 2,174 1,451 - - -
846 716 130 - - -
311 286 25 - - -
7,008 1,372 5,636 - - -
- - 175 32 143
17,775 8,060 9,715 - - -
361 (361)
- 139 (139)
2,545 11,560 (9,015)
- - - 11,975 11,122 753
31,209 13,772 17,437 14,595 23,214 (8,619)
(9,839) 5,110 14,949 (6,051) (15,771) (9,720)
- - - 4,706 15,542 10,936
908 1,122 214 2,650 3,466 816
- - - - (10,001) (10,001)
(2,650) (2,242) 408 (883) (968) (85)
(1,742) (1,120) 622 6,473 8,039 1,566
(11,581) 3,990 15,571 422 (7,732) (8,154)
12,788 12,788 - 37,711 37,711 -
1,207 $ 16,778 S 15,571 $ 38,133 S 29,979 S (8,154)
(Continued)
-8-
t
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT.OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
GENERAL,SPECIAL REVENUE AND DEBT SERVICE FUND TYPES
E (Continued)
For the year ended September 30, 1999
(In Thousands)
{ Totals(Memorandum Only)
l anance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property taxes ,
Othertaxes 43,805 47,990 4,185
Licenses and permits 6,976 10,228 3,252
r=
Fines,forfeitures and penalties 3,094 2,744 (350)
From use of money and property 10,482 9,449 (1,033)
From other agencies 26,088 23,456 (2,632)
Charges for current service 10,068 9,555 (513)
?' Other 2,691 4,225 1,534
TOTAL REVENUES 135,829 141,992 6,163
EXPENDITURES:
ji Current:
City Council 260 275 (15)
City Administrator 1,506 1,569 (63)
City Treasurer 920 820 100
City Attorney 1,694 1,720 (26)
City Clerk 551 474 77
Administrative services 3,067 2,876 191
Community development 4,322 4,067 255
Fire 16,646 15,639 1,007
Police 36,159 34,343 1,816
T.
Economic development 3,625 2,174 1,451
Community services 8,397 8,344 53
Library services 3,206 3,243 (37)
Public works 24,807 18,265 6,542 _
Nondepartmental 9,288 12,857 (3,569)
Capital outlay 21,553 9,363 12,190
Debt service:
Cost of issuance - 361 (361)
Issuance discount - 139 (139)
Principal 2,545 11,560 (9,015)
Interest 12,769 11,947 822
TOTAL EXPENDITURES 151,315 140,036 11,279
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (15,486) 1,956 17,442
OTHER FINANCING SOURCES(USES):
Proceeds of long-term debt 4,706 15,542 10,836
Operating transfers in 5,473 6,626 1,153
Payment to escrow agent - (10,001) (10,001)
{. Operating transfers out (11,250) (7,751) 3,499
TOTAL OTHER FINANCING SOURCES(USES) (1,071) 4,416 5,487
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (16,557) 6,372 22,929
FUND BALANCES AT BEGINNING OF YEAR 83,304 83,304 -
w.# _FUND BALANCES AT END OF YEAR $ 66,747 $ 89,676 $ 22,929
See independent auditors'report and notes to financial statements.
-9
x,
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENSES AND
CHANGES IN RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Internal Totals
Enterprise Service 1999 1998
OPERATING REVENUES:
Sales $ 17,839 $ - $ 17,839 $ 18,140
Rentals 661 - 661 639
Fees for service 12,311 14,223 26,534 26,902
Other 1,319 471 1,790 4,684
TOTAL OPERATING REVENUES 32,130 14,694 46,824 50,365
OPERATING EXPENSES:
Water purchases 4,019 - 4,019 4,029
Supplies and operations 18,324 2,300 20,624 20,817
Engineering 810 - 810 759
Production 4,278 - 4,278 4,352
Maintenance 1,224 - 1,224 1,411
Water meters 945 - 945 983
Water quality 245 - 245 250
In-lieu taxes to General Fund 2,809 - 2,808 2,651
Employee medical claims and insurance - 4,099 4,099 3,946
Liability claims and insurance - 753 753 5,185
Workers'compensation claims and insurance - 3,079 3,079 2,326
City Attorney 5 - 5 57
Depreciation 1,584 2,626 4,210 4,802
TOTAL OPERATING EXPENSES 34,242 12,857 47,099 51,568
OPERATING INCOME(LOSS) (2,112) 1,837 (275) (1,203)
NONOPERATING REVENUES(EXPENSES):
Interest income 2,014 476 2,490 2,273
Gain(loss)on disposal of assets - (364) (364) (72)
Interest expense (493) (230) (723) (942)
Joint venture income(loss) 48 - 48 (311)
TOTAL NONOPERATING REVENUES(EXPENSES) 1,569 (118) 1,451 948
NET INCOME(LOSS)
BEFORE OPERATING TRANSFERS (543) 1,719 1,176 (255)
OPERATING TRANSFERS IN 155 990 1,145 383
OPERATING TRANSFERS OUT (11) - (11) (25)
NET INCOME(LOSS) (399) 2,709 2,310 103
ADD DEPRECIATION ON CONTRIBUTED ASSETS 1,253 1,165 2,418 2,090
INCREASE(DECREASE)
IN RETAINED EARNINGS 85-4 3,874 4,728 2,193
RETAINED EARNINGS-BEGINNING OF YEAR 35,164 4,168 39,332 37,139
RETAINED EARNINGS-END OF YEAR $ 36,018 $ 8,042 $ 44,060 $ 39,332
See independent auditors'report and notes to financial statements.
10-
f
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF CASH FLAWS-ALL PROPRIETARY:FUND TYPES
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(in Thousands)
Internal Totals
Enterprise Service 1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income(loss) $ (2,112) S 1,837 $ (275) S (1,203)
Adjustments to reconcile operating income(loss)
to net cash provided(used)by operating activities:
Depreciation 1,584 2,626 4,210 4,802
Changes in operating assets and liabilities:
(Increase)decrease in accounts receivable 477 (375) 102 (362)
(Increase)decrease in interest receivable (21) - (21) (63)
(Increase)decrease in prepaid insurance - (176) (176) 1,291
` (Increase)decrease in unbilled receivable (99) - (99) 648
(Increase)decrease in advance to other funds (308) - (308) (323)
(Increase)decrease in due from other funds (158) 528 370 1,870
(Increase)decrease in inventory 42 42 5
Increase(decrease)in accounts payable (541) 876 335 97
Increase(decrease)in accrued payroll 18 2 20 35
Increase(decrease)in interest payable - (5) (5) 9
Increase(decrease)in leases payable - - 1,224
Increase(decrease)in claims payable - (1,798) (1,798) 13
Increase(decrease)in due to other funds 160 (416) (256) (82)
Increase(decrease)in deposits (1,154) (1,154) 342
Increase(decrease)in compensated absences 2 6 8 30
Total Adjustments 2 1,268 1,270 9,536
NET CASH PROVIDED(USED)BY OPERA t 10 3 j (U ) TING ACTIVITIES (2, ) 105 995 8,333
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating transfers in� ISS 990 1,145 383
Operating transfers out (11) - (11) (25)
Residual equity transfers out(cash portion)
NET CASH PROVIDED(USED)BY
NONCAPITAL FINANCING ACTIVITIES 144 990 1,134 358
1'. CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Contributions from water customers 5,882 - 5,882 5,562
Interest paid (493) (230) (723) (942)
Acquisition and construction of capital assets (1,972) (1,438) (3,410) (6,751)
Proceeds of sale of plant,property and equipment - - - 204
Principal paid on long-term debt (133) (549) (682) (95)
NET CASH PROVIDED(USED)BY CAPITAL
AND RELATED FINANCING ACTIVITIES 3,294 (2,217) 1,067 (2,022)
CASH FLOWS FROM INVESTING ACTIVITIES:
joint venture cash received(paid) (14) - (14) (87)
Interest on investments 2,016 398 2,414 2,273
NET CASH PROVIDED(USED)BY INVESTING ACTIVITIES 2,002 398 2,400 2,186
NET INCREASE(DECREASE)
CASH AND CASH EQUIVALENTS 3,320 2,276 5,596 8,855
i CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 21,376 6,589 27,965 19,110
CASH AND CASH EQUIVALENTS-END OF YEAR $ 24,696 $ 8,865 S 33,561 S 27,965
NONCASH ACTIVITIES:
Equipment contributions/translers $ $ 372 $ 372 $ 415
joint venture activity (364) (364) (1,230)
Acquisition of assets through capital leases - - - 1,279
TOTAL NONCASH ACTIVITIES $ _ $ 8 $ 8 $ 464
See independent auditors'report and notes to financial statements.
� I1-
CITY OF HUNTINGTON BEACH
STATEMENT OF CHANGES IN PLAN NET ASSETS
PENSION TRUST FUND
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Totals
1999 1998
ADDITIONS:
Employer contributions $ 1,559 $ 1,514
Interest income 133 183
TOTAL ADDITIONS 1,692 1,697
DEDUCTIONS:
Benefits 847 729
Administration - 19
TOTAL DEDUCTIONS 847 748
NET INCREASE 1N PLAN ASSETS 845 949
FUND BALANCE-BEGINNING OF YEAR 3,283 2,334
FUND BALANCE-END OF YEAR $ 4,128 S 3,283
See independent auditors'report and notes to financial statements.
12-
,1
CITY OF HUNTINGTON BEACH
j. NOTES TO FINANCIAL STATEMENTS'
3 September 30, 1999
9
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Description of Fund Types and Account Groups:
The City of Huntington Beach(City)accounts for its financial position and operations according
to generally accepted accounting principles for governmental units prescribed by the Government
Accounting Standards Board(GASB). The City uses various funds and account groups to record
its financial activity. A fund or account group is an accounting entity with a self-balancing set of
'! accounts to record the financial position and results of operations of a specific governmental
activity. The City maintains the following fund types and account groups:
Governmental Fund Types:
• 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 moneys legally restricted
to a specific use.
• Debt Service Funds account for the receipt and disbursement of moneys used for the payment
of general'and redevelopment long-term principal and interest.
• Capital Projects Funds account for moneys 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
(e eases including depreciation)basis or when the City wants to determine net income.
/Internal Service Funds account for goods and services provided by one department of the City
/ to another on a cost-reimbursement basis.
Fiduciary Fund Types;
• Agency 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.
• The Expendable Trust Fund accounts for the assets of the City's deferred compensation plan
1` that are still held b the City in a fiduciary capacity.
y ty � ary
is
See independent auditors' report.
13 -
r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999 '
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of Fund Types and Account Groups(Continued):
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, agency, and expendable trust funds use a modified accrual basis of accounting.
These funds recognize revenue when it is susceptible to accrual. It must be measurable and
available to finance current period expenditures. They include property taxes, sales tax,
governmental grants and subventions, interest and charges for current service. Revenues not
susceptible to accrual include certain licenses, permits, fines and forfeiture and 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, similar
to private businesses recognizing revenue when earned, regardless of the date of receipt, and
recognize-expenses when incurred. The City selected,under GASB Statement No.20,to apply all
GASB,pronouncements as well as any official statements or opinions of the Financial Accounting
Standards Board,the Accounting Principles Board,or any other Research Bulletins issued'on or
before November 30, 1989 unless they conflict with GASB pronouncements.
c. Measurement Focus:
The City accounts for its governmental and expendable trust 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 balances for
governmental funds 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.
See independent auditors' report.
- 14 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS"
(CONTINUED)
d September 30, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus (Continued):
The City Council must annually adopt a budget by September 30 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 expenditures with the exception
of capital improvement projects (capital projects funds) carried forward from prior years,which
j constitute a legally authorized non-appropriated budget.The City Council may amend the budget
any time. The City Administrator may transfer funds from between object purposes (personal
services, operating expenditures or capital outlay expenditures) within the same department
without changing the total departmental budget. Department heads may transfer funds from like
object categories of the same department. The City .Council must approve any 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
II,.
supplemental appropriations with included carryovers of prior year encumbrances all of which
is were within available fund balance and estimated revenue amounts.
1 The City Council adopts governmental fund budgets consistent with generally accepted 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 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 1, the City Council receives the proposed budget. The City Council holds
Y g t}` p p g tY
public hearings and may amend the budget by a majority vote. 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
I;
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 reapproprates these
encumbrances into the new fiscal year.
�! See independent auditors' report.
- 15 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Receivables:
The receivables are recorded net of an allowance for uncollectible amounts of $1,011,000 at
September 30, 1999. Also, not included on the financial statements are miscellaneous accounts
receivable estimated in the amount of$3,300,000 sent to a collection agency as these accounts are
considered to have no net realizable value.The amounts received by the City from the collection
agency net of commissions are recorded as income when received.
e. Investments:
The City records investments at fair value.
£ 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. Depreciation for proprietary fund donated assets is recorded as a reduction to
contributed capital.
Production,pumping transmission and distribution plant 10 to 15 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.
See independent auditors' report.
- 16-
CITY OF HUNTINGTON BEACH
NOTES`TO`FINANCIAL STATEMENTS
(CONTINUED)
September 3Q, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Inventories:
Inventories are recorded in governmental funds by the consumption �cf 0d. Inventories are
capitalized and recorded as expenditures when used and a-o vidued using the average cost method.
This amount is offset with a reservation of.f.-ta balance. Proprietary inventories are valued at
weighted-average cost.
h. Iraerrund Transactions:
Numerous transactions occur between funds of the City resulting in operating transfers, residual
equity transfers,amounts due to or from other funds and amounts advanced to or from other funds
• Residual equity transfers are non-routine permanent transfers of equity between funds.
• Amounts due to or from are the current(due within one year)portion of moneys that are to be
k paid or to be received from other funds.
I'' + Amounts that are classified as advances from other funds are the long-term portion of moneys
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-external transactions are interfund transactions that would be treated as revenues,
expenditures or expenses if they had involved organizations external to the City. The City
records all quasi-external transactions as revenues,expenditures or expenses.Transactions that
j reimburse a fund for expenditures or expenses initially made from that fund, are recorded as
expenditures/expenses.All other interfund transactions are reported as operating transfers.
i. 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.
I'
�I See independent auditors' report.
- 17 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
1. SUMMARY a-F SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
i. Long-Term Obligations(Continued):
The City also records,as a liability in the General Long-Term Debt Account Group,the difference
between the annual required contribution on a defined benefit pension plan recorded in a pension
trust fund, and the contributions made to that plan for the years in which there was an actuarial
r study performed. This is in accordance with GASB Statement No. 25.
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.
k. Fund Equity:
The various types of fund equity recorded on the balance sheet are described below:
Governmental and Fiduciary Fund Types:
• Reserved Fund Balance is the portion of fund balance that cannot be appropriated for
expenditures or that is legally segregated for a specific future use.
• Unreserved/Designated Fund Balance is the portion of fund balance that has been tentatively
set aside by the City Council.
• Unreserved/Undesignated Fund Balance is the portion of fund balance that is available to be
spent by the City Council.
See independent auditors' report.
- 18 -
CITY OF HUNTINGTON BEACH
NOTES TO FIN'4NCIAL STATEMENTS
(CONTINUED)
September 30, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. Fund Equity(Continued):
i
Proprietary Fund Types:
• Unreserved Retained Earnings is the accumulated earnings of an enterprise or internal ser-dee
fund.
','j • Reserved Retained Earnings is the amount of retained earnings legally corrimitted to a specific
To
tl purpose.
�', • 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.
' l Depreciation expense on assets acquired through contributed capital is charged to. retained
!!,I, earnings and then added back. This amount is then reduced from the contributed capital total.
t Account Groups:
i
''` + Investment in General Fixed Assets is the City's investment in general fixed assets recorded
at cost.
S
# 1. Property Tax Revenue:
I Property tax in California is levied according to Article 13-A of the California Constitution. The
basic levy is a countywide-levy of one percent of total assessed valuation and is allocated to county
governments, school districts, cities and special districts. Additional levies require two-thirds
ll approval by voters and are allocated directly to the specific government. Property tax revenue is
j recognized in the fiscal year levied provided that revenue is collected in time to pay current year
liabilities. The County acts as a collection agent for property tax for all of the local governmental
V� units. Property taxes are normally collected twice per year.The property tax calendar is as follows
Lien Date January 1 —Prior Fiscal Year
'�' • Levy Date July 1 ---Prior Fiscal Year i
• Due Date,First Installment November 10
€ rr • Due Date, Second Installment February 10
r • Delinquent Date, First installment December 10
• Delinquent Date, Second Installment April 10
See independent auditors' report.
S I
- 19-
v'
1i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
1. Pronefty I=Revenue(Continued):
The taxes are paid to the local governments}periodically during the year. Below are the dates of
the payments from the County:
• Payments of First Installment November to December
• Balance of First Installment February 1
• Payments of Second Installment March to April
• Balance of Second Installment July 26
in. Allocation of Interest Income Among Funds:
The City pools all non-restricted cash for investment purchases and allocates interest income based
on month-end cash balances. Funds that have restricted cash record interest income in the
respective fund.
n. Equipment Replacement Fund:
All machinery and equipment not owned by proprietary funds are owned by the Equipment
Replacement Fund, an internal service fund, and leased to user departments.All machinery and
equipment not replacing existing equipment is purchased by the respective fund and transferred
to the Equipment Replacement Fund. The City records this transaction as a capital outlay
expenditure in the fund making the purchase and contributed capital in the Equipment Replacement
Fund.
o. Total Columns on Financial Statements:
The combined financial statements include"total(memorandum only)"columns which total the
financial statement amounts of the fund types and account groups. The columns:are labeled
"memorandum only"because the totals are not comparable to a consolidation since the City does
not eliminate interf ind transactions(except for certain leases between the primary government and
component units described in Note 2).
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 activities are recorded in
governmental funds and the City's interest is recorded in the General Fixed Assets Account Group
(see Note 18).
See independent auditors' report.
_20-
` CITY OF HUNTINGTON BEACH
NOTES'TO FINANCIAL STATEMENTS
(CONTINUED)
I�
{ September 30, 1999
s
M.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
.� q. Cash Flow Statements:
For purposes of the Statement of Cash Flows, the Proprietary Fund types consider all cash and
a investments to be cash equivalents, as these funds participate in the city-wide cash and investment
pool.
r. Estimates:
The accompanying financial statements require management to make estimates and assumptions
that effect certain report amounts and disclosures. Actual results could differ from those estimates.
` 2. REPORTING ENTITY:
" The City of Huntington Beach is the primary government. It was incorporated in 1909, is a charter,
full-service city. The form of government is Council-Manager. Component units are legally separate
organizations for which the City Council is financial accountable, 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
a government for financial reporting purposes because either the component units have governing bodies
identical to the City's (the City Council) or provide services exclusively to the City. Financial
accountability means the appointment of a voting majority of the component unit's board and either
the ability to impose will by the City or the possibility that the component unit will provide a financial
benefit or impose a financial burden on the City. -
Huntington Beach Public Facilities Co oration Public Facilities Corporation) — This entity was
{ 1P ) n'
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 financial operations. 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 Public Facilities
Corporation teased the Central Library complex to the City until fiscal year 1997-98 when the lease
with the City was terminated at which time all assets were transferred to the City.
;I
i
3
G
f
i
a
f'
See independent auditors' report.
-21 -
R:
L"
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
2. REPORTING ENTITY(CONTINUED):
Redevelopment Agency of the Cityof f Huntington Beach(the Redevelopment 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 Redevelopment Agency is financially dependent on the City for all
of its operations. The tax increment revenue received and disbursed by the Redevelopment Agency
is recorded in a debt service fund and the capital improvements made are recorded in two capital
projects funds. The Redevelopment Agency's debt is recorded in the General Long-Term Debt
Account Group since these amounts will be paid from future financial resources. Separately prepared
financial statements are available for the Redevelopment Agency from the City's Administrative
Services Department.
Huntington Beach Civic Center Improvement Corporation(Civic Improvement Corporation)—'ibis
corporation was formed to provide for the defeasance of the Huntington Beach Public Facilities
Corporation Leasehold Mortgage Bonds— lit 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
s: Civic Center complex and leases it to the City. It is a capital lease because title to the Civic Center
complex reverts to the City at the end of the lease. The lease cannot be terminated if the City meets
all its financial obligations.
The assets pledged for repayment of the certificates of participation and the related revenues and
expenditures are recorded in the Civic Improvement Corporation Debt Service Fund. Since the Civic
Improvement Corporation is a part of the City's reporting entity,the capital lease is not shown on the
combined balance sheet. There are no separate financial statements prepared for the Civic
Improvement Corporation.
Huntington Beach Public Financing Authority (Public Financing Authority)—This corporation was
formed in March, 1988 to issue debt to finance public improvements and other capital purchases for
the City and Redevelopment Agency. The Public Financing Authority's governing body is the City
Council,which also adopts the annual budget.The Public Financing 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) and the Pier Plaza Fund (a
Capital Projects Fund). There are separately prepared financial statements available for the Public
Financing Authority that are available from the City's Administrative Services Department.
See independent auditors' report.
-22 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
2. REPORTING ENTITY(CONTINUED):
The City of Huntington Beach Community Facilities District 1990-1 (Community Facilities District),
and the Reservoir Hill Assessment District(the Assessment District)were formed to construct public
improvements within the City boundaries. The governing board of these districts is the City Council.
The proceeds of debt issued and the expenditures for the public improvements are recorded in capital
j projects funds. The Community Facilities District's activity is not an obligation of the City and the
moneys 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.
' The Huntington Beach Auto Business Improvement District the Business Improvement District was
{ ; P ( P )
formed in 1992 to fund capital improvements within this non-contiguous district. The Business
R li
Improvement District's governing body is the City Council.The business owners within the district
petitioned the City Council under the Streets and Highways Code to form the district which assisted
i� in the funding of an electronic reader board sign advertising the auto dealers.The assets held on behalf
A of the Business Improvement District's activity are recorded in an 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
if Authority is recorded in an agency fund. The activity of the West Orange County Water Board is
'?. recorded in the Water Fund an enterprise fund as a joint venture.
3. CASH AND INVESTMENTS:
The City Treasurer's Office administers a pooled investment program.This program enables the City
Treasurer to combine available cash from all funds and to invest cash that exceeds current needs.The
City has an agreement with a bank to maintain a minimum cash balance to compensate the bank for
services and uncleared checks that are deposited in the City s accounts in-lieu of interest earnings.
Cash and investments at year-end totaled(in thousands):
Cash and investments $ 78,898
Cash with fiscal agent—restricted 9.280
Total Cash and Investments $ 88.178
E
I'
See independent auditors' report.
-23
I;
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
3. CASH AND INVESTMENTS (CONTINUED):
The City's investment policy and Section 53601 of the California Government Code allows the
following investments:
Bankers acceptances
Negotiable certificates of deposit
Commercial paper
Bonds issued by the City or an Agency within the State of California
Obligations of the United States Treasury
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)
• Federal Home Loan Corporation Notes(FHLMC)
Medium Term Corporate Notes
Time Deposits—Certificates of Deposit
Obligations of the State of California
Mutual Funds
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 5%of
the City's investment portfolio.
Reverse-Repurchase Agreements:
Although the City's investment policy allows reverse-repurchase agreements with specific City
Council approval, the City did not borrow through the use of reverse-repurchase agreements at any
time during the year.
See independent auditors' report.
-24-
Q.
>' CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL; STATEMENTS
(CONTINUED)
September'W, 1999
3. CASH AND INVESTMENTS (CONTINUED):
Classification of Deposits and Investments by Credit Risk:
The City categorizes its balance of deposits and investments with financial institutions under the
following risk categories:
DEPOSITS:
Category I - Deposits insured or 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 institution's trust
'I
department or agent in the City's name.
' Category 3 - Uncollateralized deposits,or collateralized with securities held by the pledging financial
institution or by its trust department or agent,but not in the City's name.
INVESTMENTS:
3
Category 1 - Insured or registered investments,or securities held by the City or its agent in the City's
name.
Category 2 - Uninsured and unregistered investments with securities held by the counterparty's trust
department or agent in the City's name.
Category 3 - Uninsured and unregistered investments with securities held by the counterparty or by
its trust department or agent but not in the City's name.
i
See independent auditors' report.
- 25 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
3. CASH AND INVESTMENTS (CONTINUED):
Deposits and investments were categorized as follows at September 30, 1999(in thousands):
Not Required
Category to be Bank Fair
Deposits: 1 2 3 Cate orb Balances Value
Demand
accounts $ 133 $ 3,232 $ - $ - $ 3,365 $ 1,629
Investments:
Commercial
Paper $ 1,960 $ - $ - $ - $ 1,960 1,960
Bankers
Acceptances 991 - - - 991 991
Investment
in LAIF - - - 12,485 12,485 12,485
Federal
Agency Issues 37,381 - - - 37,381 37,381
Treasury
Securities 6,993 - - - 6,993 6,993
Medium Terns
Notes 14,707 - - - 14,707 14,707
Repurchase
Agreement - - 2,690 - 2,690 2,690
Cash With
Fiscal Agent:
Guaranteed
Investment
Contracts - - - 6,395 6,395 6,395
Money Market
Mutual Funds - - - 2,554 2,554 2,554
U.S.Treasury
Obligations - - 330 330 330
Total
Investments L 62,032 $ - $ 3,020 $ 21.434 $ 86,486 86,486
Petty cash 63
TOTAL CARRYING AMOUNT(FAIR VALUE) $ 88.178
Cash and investments are reported in the accompanying combined balance sheet as follows:
Cash and investments $ 78,898
Restricted cash and investments with fiscal agents 9,280
$ 88,178
See independent auditors' report.
-26-
i'
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
3. CASH AND INVESTMENTS (CONTINUED):
Investments Not Subject to Categorization:
Investments in the California Local Agency Investment Fund (LAIF), Guaranteed Investment
Contracts and Money Market Mutual Funds are not categorized, as GASB 3 does not require
3: categorization of investment pools managed by another government. Also, Guaranteed Investment
Contracts and Money Market Mutual Funds held by the fiscal agent are not required.to be categorized
.a, under interpretive guidelines issued by the GASB.
Local Agency Investment Fund (LAIF):
The LAIF is a special fund of the California State Treasury through which local governments may pool
investments. Each city may invest up to$30,000,000 each in the Fund for the city and redevelopment
� agency
� and may also invest without limitation in special bond proceeds accounts. Investments in LAIF
are highly liquid,as deposits can be converted to cash within twenty-four hours without loss of interest.
Included in LAIF's investment portfolio are certain derivative securities or similar products such as
?' structured notes totaling $1,462,350,000 and asset-backed securities totaling$528,822,000. LAIF's,
and the City's, exposure to credit,market or legal risk is not available.
i 4. DEFERRED COMPENSATION:
Permanent City employees may defer a portion of their salary under Section 457 of the Internal -
Revenue Code. This plan permits employees to defer a portion of their salary until future years. The
l; compensation is not available to the employees until termination,retirement,or unforeseen emergency.
The City has established a trust for the assets of the plan held by third-parties. All property and rights
purchased with these assets,as well as all income attributable to them are held in trust for the exclusive
benefit of the participant and their beneficiary. The amounts are not longer the property of the City and
are not subject to the claims of the City's general creditors. Amounts administered by outside
organizations in a trustee capacity are no longer reported as assets of the City.The City does not have
fiduciary responsibility for these assets.
A portion of the assets in the plan were still held by the City at year-end. The accompanying financial
statements show the amounts held by the City as an expendable trust fund. The City has the duty of
care of an ordinary prudent investor. The City believes it is unlikely that it will use these assets to
satisfy the claims of general creditors.
i'
See independent auditors' report.
-27-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
5. DEFERRED REVENUE:
Certain revenues in governmental funds are deferred until received. The amounts are as follows (in
thousands):
General Fund:
Interest on General Fund advances to Redevelopment Agency $ 4,702
Revenues received in advance 328
Total General Fund 5,030
Special Revenue Funds:
Park Acquisition and Development Fund:
Sale of Emerald Cove site to Redevelopment Agency 1,984
Development fees deferred in 1985 248
Land-in-lieu park fees 2,851
Interest 1904
Total Park Acquisition and Development Fund 6,987
Sewer Fund:
Deferred development fees 38
Interest on developer fees and advances to Redevelopment Agency 112
Total Sewer Fund 150
Gas Tax Fund:
Interest on advances to Redevelopment Agency 596
Grant Fund:
Revenues received in advance 174
Deferred loans 2;651_
Total Grant Fund 2,825
Drainage Fund:
Deferred development fees 54
Interest on developer fees and advances to Redevelopment Agency 236
Total Drainage Fund 290
Total Special Revenue Funds 10.848
Capital Projects Funds:
Capital Improvement Fund:
Interest on advances to Redevelopment Agency 199
Reimbursement of project costs 725
Total Capital Projects Funds 924
TOTAL DEFERRED REVENUE $ 16802
See independent auditors' report.
- 28 -
CITY OF HUNTINGTON BEACH
NOTES TO'FINANCIAL STATEMENTS
(CONTINUED)
i September 30, 1999
6. RETIREMENT PLAN—NORMAL:
a. Plan Description:
The City contributes to the California Public Employees' Retirement System (CALPERS), an
1
agent, multiple-employer public employee defined benefit pension plan. CALPERS provides
i retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan
3 members and beneficiaries.CALPERS acts as a common investment and administrative agent for
participating public entities within California. Benefit provisions and all other requirements are
established by state statute and city ordinance. Copies of CALPERS annual financial report may
be obtained from their executive office:400 P Street, Sacramento,CA 95814.
b. Employer and Employee Contribution Obligations:
The City makes two types of contributions for covered employees.The first contribution represents
j 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).
I
The member rate is set by contract and normally remains unchanged.
The employer rate is an actuarially established rate,is set by CALPERS, and changes from year
.' to year.The employer and member rates for the fiscal year ending September 30, 1999 are:
Member -
October 1, 1998 July,l, 1999 Rates as
to to Percentages
Membership Groin June 30, 1999 Sept.30. 1999 of Woes_
Local Miscellaneous 1.667% 0.00% 7%
Local Safety 16.294% 2.18% 9%
I
c. Annual Pension Cost:
The City's annual pension cost of $7,529,000 was equal to the City's required and actual
contributions. The required contribution was determined as part of a June 30, 1997 actuarial
valuation using the entry age normal actuarial cost method.
See independent auditors' report.
-29-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
6. RETIREMENT PLAN—NORMAL (CONTINUED):
c. Annual Pension Cost(Continued):
CALPERS conducted an actuarial valuation using the entry-age actuarial cost method using a level
percent of payroll to determine the City's pension benefit obligation as of June 30, 1997.
Significant assumptions were:
• Average remaining period— 16 years as of the valuation date (safety)
• Asset valuation method—3 years smoothed market
• Investment Rate of Return—8.25%
• Projected salary increases— 3.75% to 11.59% (safety) and 3.75% to 14.2% (miscellaneous)
depending on age, service, and type of employment -
• Inflation—3.50%
• Payroll growth—3.75%
• Individual salary growth—A merit scale varying by duration of employment coupled with an
assumed annual inflation component of 3.50%and an annual production growth of.25%
Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of
entry into CALPERS. Subsequent plan amendments are amortized as a level percent of pay over
a closed 20 year period. Gains and losses that occur in the operation of the plan are amortized over
a rolling period,which results in an amortization of 10%of the unamortized gains and losses each
year. If the plan's accrued liability exceeds the actuarial value of the assets,then the amortization -
payment on the total unfunded liability may not be lower than the payment calculated over a 30
year amortization period.
d. Trend Information:
Three-Year Trend Information for the Miscellaneous and Safety Plans:
Annual Pension
Fiscal Cost(APC) Percentage of Net Pension
Year (in thousands) APC Funded ObB ation
9/30/97 $ 8,576 100% $ -
9/30/98 8,437 100% -
9/30/99 7,529 100°% -
See independent auditors' report.
-30
CITY OF HUNTINGTON BEACH
NOTES'TO FDTANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
j 6. RETIREMENT PLAN--NORMAL (CONTINUED):
d. Trend Information(Continued):
Schedule of Funding Progress for CALPERS (Dollar Amounts in thousands):
Entry Age
Normal UAAL as a
Actuarial Accrued Actuarial Unfunded %of
Valuation Liability Value of AAL Funded Covered Covered
Date (A.AL) Assets (UAAL) Ratio Payroll Payroll
(A) (B) (A-B) (B/A) (C) [(A-B/C]
6/30/96:
Safety $ 177,012 $ 170,936 $ 6,076 96.6% $ 21,767 27.914 %
Non-Safety 120,995 131,772 00,777) 108.9% 29,667 (36.326) %
Total $ 298,007 $ 302,708 $ (4,701) 101.5 % $ . 51,434 (9.139)
6/30/97:
Safety $ 184,026 $ 195,194 $ (11,168) 106.1 % $ 21,885 (51.030) %
Non-Safety_ 119,945 152,628 (32,683) 127.2% 29,376 (111.254) %
Total $ 303,971 $ 347,822 $ (43,851) 114.4% $ 51,261 (85.544) % -
6/30/98:
Safety $ 203,259 $ 229,982 $ (26,723) 113.1 % $ 21,218 (125.943).%
Non-Safety 127,806 181,299 453,493) 141.9% 29,025- (184.301) %
Total $ 331,065 $ 411.281 $ (80,216) 124.2% $ 50,243 (159.656) %
f
See independent auditors' report.
1 - 31 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
7. RETIREMENT PLAN—SUPPLEMENTAL:
a. Plan Description:
The City provides a supplemental retirement plan for all employees hired prior to January 1, 1998.
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 City's contracts with employee bargaining
associations establishes the plan.Any changes to the plan must be agreed to by these associations.
The amount will cease upon the employee's death. The amount which is computed as a factor of
an employee's normal retirement allowance,is computed at retirement and remains constant for
his or her life. Of the 1,000 active employees reported on the July 1, 1999 data, only 888 were
eligible for plan benefits.
b. Employer Obligations and Funding Status and Progress:
The City annually transfers amounts from the various City funds to a pension trust fund.The City
is required to contribute an actuarially determined rate of 4.10% of covered payroll for all
permanent employees.Administrative costs of this plan are financed through investment earnings.
c. Annual Pension Cost and Net Pension Obligation:
The City's annual pension cost and net pension obligation for this plan at June 30, 1999 were(in
thousands):
Annual required contribution $ 2,613
Interest on net pension obligation 345
Adjustment to annual required contribution {426)
Annual pension cost 2,532
Contributions made 1,559
Increase(decrease) in net pension obligation 973
Net Pension Obligation—Beginning of Year 6,271
Net Pension Obligation—End of Year 7,244
3
See independent auditors' report.
-32 -
t
CITY OF HUNTINGTON BEACH
NOTES'TOFINANCIAL STATEMENTS
(CONTINUED)
is September 30, 1999
�F
AEI.
7. RETIREMENT PLAN—SUPPLEMENTAL (CONTINUED):
c. Annual Pension Cost and Net Pension Obligation Continued
The annual required contribution was determined as part of an independent actuarial valuation
using the Entry Age Normal Actuarial Cost Method which is a projected benefit full-cost method
which takes into account those benefits that are expected to be earned in the future as well as those
already accrued.The actuarial assumptions used were:
• Rate of return on present and future assets—5.5%per annum
• Projected salary increases for covered employees due to inflation—3.0%per annum
• Projected salary increases due to merit—0%
• Inflation rate—3.0%
• Postemployment benefit increases—0%
• Amortization of unfunded liability—level percentage of pay ending in 2027
• Actuarial value of assets—market value
d. Trend Information:
E
Below is the required three year trend information (dollar amounts in thousands):
Fiscal Annual Pension Percentage of Net Pension
Year Cost (APQ APC Funded Obligation -
6/30/97 $ 1,966 35% $ 5,592
6/30/98 2,193 69% 6,271
6/30/99 2,532 62% 7,244
Below is other required trend information(dollar amounts in thousands):
Fiscal Year Annual Required
Ending Contribution Percentage of
_ June 30, (ARC) ARC Contributed
1992 $ 1,391 17%
1993 1,546 16%
1994 1,697 14%
1995 1,790 22%
1996 1,968 41%
1997 1,952 155%
1998 2,151 70%
1999 2,613 60%
See independent auditors' report.
33 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
7. RETIREMENT PLAN--SUPPLEMENTAL (CONTINUED):
d. Trend Information(Continued):
Schedule of Funding Progress(Dollar Amounts in Thousands):
Entry Age
Normal UAAL as a
Actuarial Accrued Actuarial Unfunded %of
Valuation Liability Value of AAL Funded Covered Covered
Date __(AAL) Assets (UAAQ Ratio Payroll Payroll
(A) (B) (A-B) (B/A) (C) ((A-BIC]
6/30/94:
Actual $ 14,673 $ (52) $ 14,725 (.4)% $ 53,593 27.5 %
6/30/95:
Update 15,776 (290) 16,066 (1.8)% 51,779 31.0 %
6/30/96:
Actual 16,071 (120) 16,191 (0.7)% 54,368 29.8 %
6/30/97:
Actual 25,342 2,334 23,008 9.2% 49,881 46.1 % -
6/30/98:
Update 26,493 3,251 23,242 12.3 % 48,585 47.8 %
6/30/99:
Actual 28,601 4,162 24,439 14.6% 50,723 48.2 %
e. Accounting for Plan:
Since the City is required to adopt GASB 25 for the supplemental pension plan, the difference
between the ARC and the amount of pension cost funded for the years in which there was an
actuarial study must be recorded as a liability in the General Long-Term Debt Account Group.The
amount of this liability is $7,244,000. Actuarial studies and updates were performed since 1991
and there is a substantial amount of unfunded pension benefit liability that would have been
recorded in the General Long-Term Debt Account Group if the studies would have been performed
(see Note 12).
See independent auditors' report.
- 34 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
I
September 30, 1999
8. POST-EMPLOYMENT MEDICAL INSURANCE:
a. Plan Description:
The City agreed via contract with each employee association to provide post-employment medical
insurance to retirees.The benefits are based on years of service and are available to all retiree who
meet all three of the following criteria:
• At the time of retirement the employee is employed by.the City.
• At the time of retirement the employee has a minimum of ten years of service credit or is
granted a service connected disability retirement.
• Following official separation from the City, CALPERS grants a retirement allowance.
The City's obligation to provide the benefits to a retiree ceases when either of the following occur:
• 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 any of the insurance plans that
the City's active employees may enroll.
b. Accounting and Funding:
The Retiree Medical Insurance Fund is an agency fund.Other funds contribute on a periodic basis.
Employees do not contribute. The actuarial assumptions for the plan are identical to the
assumptions used for the Retirement Supplement Plan(see Note 7).
Below are the required disclosures for this plan(in thousands):
Number of active participants 1,000
Employer's actuarially required contributions $ 529
Employer's actual contributions $ 526
Below is a summary of the Unfunded Actuarial Accrued Liability for the plan(in thousands)
Actuarial accrued liability $ 9,529
Net assets available for plan benefits 3.987
Unfunded Actuarial Accrued Liability $ 5,542
See independent auditors' report.
-35 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
9. RISK MANAGEMENT:
The City is exposed to various risks of losses related to torts; theft of, damage to and destruction of
assets; errors and omissions; injuries to employees; natural disasters and employee health insurance
claims.
The City established an Insurance Reserve 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(BICEP)
which provides general liability insurance of$24,000,000 above the City's retention of$1,000,000.
BICEP was created by a joint powers agreement between the City of Huntington Beach and four other
local entities for the purpose of providing joint insurance coverage and related risk management
services for member cities. BICEP allows member entities to finance claims payment pool for certain
liability claims in excess of$1 million to a limit of$25 million. BICEP's governing board has one
representative from each city(either a member of the City Council or designate). Any changes to the
board must be approved by current members. Each participating City pays an insurance premium to
BICEP that is used to fund the operating and debt service requirements.
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 Insurance Reserve Fund
based on estimated cost information.
Balance at Balance at
October 1, 1998 Additions Deletions Sept. 30, 1999
Liability $ 6,289 $ 753 $ 2,698 $ 4,344
Workers' Compensation 5,199 3,079 2,926 5,352
Health 286 4,099 4,099 286
Total $ 11,774 $ 7,931 $ 9,723 $ 9,.982
Claims activity and liabilities relating to the prior year are (in thousands):
Balance at Balance at
October 1, 1997 Additions Deletions Sept. 30, 1998
Liability $ 6,067 $ 5,185 $ 4,963 $ 6,289 '
Workers' Compensation 5,537 2,326 2,664 5,199
Health 157 3,946 3,817 286
Total $ 11,761 $ 1i,457 $ 11,444 $ 11,774
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.
See independent auditors' report.
- 36-
a
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS'
(CONTINUED)
September 30, 1999
10. INTERFUND TRANSACTIONS:
a. Advances:
Interfund advances (in thousands)at September 30, 1999 were as follows:
Advances to Advances from
Other Funds Other Funds
General Fund $ 25,751 $ -
Special Revenue Funds:
Gas Tax 1,096 -
Sewer 281 -
Drainage 532 -
Park Acquisition and Development 4,136 -
Debt Service Fund:
Public Financing Authority 19,324 -
Capital Projects Funds:
Capital Improvement 399 -
Low-income Housing 2,094 -
Enterprise Funds:
Water Utility 6,528 -
Emerald Cove Housing - 244
General Long-Term Debt Account Group - 59.897
Total $ 60,141 $ 60,141
i
See independent auditors' report. -
- 37-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
10. INTERFUND TRANSACTIONS (CONTINUED):
b. Due To/From Other Funds:
Due To/From Other Funds(in thousands)at September 30, 1999 were as follows:
Due from Due to
Other Funds Other Funds
General Fund $ 200 $ -
Special Revenue Funds:
Sewer 41 -
Public Communications - 22 -
Park Acquisition and Development 290
Narcotics Forfeiture - 20
Transportation 46 -
Library Services - 336
Capital Projects Funds:
Capital Improvement 484 -
Pier Plaza - 499
Enterprise Funds:
Water 1,301
Refuse Collection - 946
Cultural Affairs - 510
Internal Service Funds:
Medical Insurance - 1,032
General Liability 783 -
Equipment Replacement 82 -
Trust and Agency Funds:
Retiree Medical Insurance 68 -
Retirement Supplement 70 -
Total $ 3,365 $ 3,365
See independent auditors' report.
- 38-
CITY OF HUNTINGTON BEACH
NOTES TO'FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
10. INTERFUND TRANSACTIONS (CONTINUED):
c. Transfers:
Operating Transfers In/Out(in thousands)at September 30, 1999 were as follows:
Operating Transfers In—Governmental Funds 7,794
Operating Transfers In—Proprietary Funds 1,145
Operating Transfers In—Agency Funds 168
Total Operating Transfers In $ 9,107
Operating Transfers Out—Govenunental Funds $ 9,053
Operating Transfers Out—Proprietary Funds 11
Operating Transfers Out—Agency Funds 43
Total Operating Transfers Out $ 9,107
11. PROPRIETARY FUND SEGMENT INFORMATION:
a. Segment Information for Enterprise Funds:
The City maintains six enterprise funds; Water Utility,Emerald Cove Housing, Emergency Fire
Medical,Refuse Collection, Hazinat Service and Cultural Affairs. Certain key financial data are
(in thousands):
Emerald Emergency
Water Cove Fire Refuse Hazmat Cultural
Utility Housing Medical Collection Service Affairs Total
Operating Revenues $ 19,130 $ 664 $ 3,596 8,554 $ 82 $ 104 $ 32,130
Depreciation
Expense(Total) 1,441 82 32 4 25 1,584
Depreciation Expense
(Contributed Capital) 1,228 - - - 25 1,253
Operating Transfers In - 35 120 155
Operating Transfers Out
Operating Income(Loss) (1,921) 248 89 (285) (14) (229) (2,112)
Net Income(Loss) (106) (10) 132 (283) (23) (109) (399)
Fixed Asset
Acquisitions 1,961 - I I - - - 1,972
Net Working Capital
(Deficit) 24,454 1,788 1,527 (227) 107 (523) 27,126
Total Assets 68,970 6,656 1,778 1,416 121 1,908 80,849
See independent auditors' report.
- 39-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
11. PROPRIETARY FUND SEGMENT INFORMATION(CONTINUED):
a. Segment Information for Enterprise Funds (Continued):
Emerald Emergency
Water Cove Fire Refuse Hazmat Cultural
Utility Housing Medical Collection Service Affairs Total
Current Assets $ 27,614 $ 1,955 $ 1,672 $ 1,416 $ 110 $ - $ 32,767
Long-Term
Obligations,Net
of Current Portion 286 5,239 24 26 5 - 5,580
Current Liabilities 3,I60 167 145 1,643 3 523 5,641
Retained Earnings
(Fund Deficit) 35,420 (38) 1,298 (253) 113 (522) 36,018
Contributed Capital 30,104 1,288 311 - - 1,907 33,610
Total Fund Equity 65,524 1,250 1,609 (253) 113 1,385 69,628
b. Contributed Capital:
The changes in Proprietary Fund Contributed Capital during the year, and the year-end balances
were (in thousands):
Depreciation
on
Balance Contributions Contributed Balance.
October 1, 1998 Contributions of Equipment Capital Sept.30, 1999
Water Utility $ 25,449 $ 5,883 $ - $ 1,229 $ 30,104
Emerald Cove
Housing 1,288 - - - 1,288
Emergency Fire
Medical 311 - - - 311
Cultural Affairs 1,,,932 - - 25 1,907
Total Enterprise
Fund 28,980 5,883 - 1,253 33,6I0
Internal Service:
Equipment
Replacement 4,833 - 372 1,165 4,040
Total Contributed
Capital $ 33,813 $ 5,�883 $ 372 $ 2,418 $ 37,650
See independent auditors' report.
-40-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT:
The changes in general long-term debt during the year were(in thousands):
Balance at Balance at
October 1, 1998 Additions Deletions Sept. 30, 1999
Civic Improvement
Corporation Refunding
Certificates of
Participation(Civic
Center- 1993 18,670 $ 640 18,030
Civic Improvement
Corporation Refunding
Certificates of
Participation(Police
Administration
Building)- 1993 14,310 385 13,925
Redevelopment Agency
1999 Tax Allocation
Refunding Bonds 10,835 495 10,340
Mayer Disposition and
Development Agreement 10,142 10,142
Compensated Absences 5,323 999 859 5,463
Advances from Other Funds 67,264 4,707 12,074 59,897
1992 Public Financing
Authority Revenue Bonds 30,860 9,585 21,275
Notes Payable 502 51 451
Reservoir Hill Assessment
Bonds 1,090 60 1,030
1997 Public Financing
Authority Leasehold,
Revenue Bonds 7,840 - 400 7,440
Net Pension Benefit Obligation 6,271 2,532 1,559 7,244
Energy Financing Loan 308 308
Total 152,438 29,2 —15 26,198 155,.545
See independent auditors' report.
-41 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
Below are reconciliations from amounts in the above table to amounts in the accompanying general
purpose financial statements(in thousands):
Proceeds of Long-Term Debt $ 25,684
Increase in Pension Benefit Obligation 2,532
Increase in Compensated Absences 999
Total Increase in General Long-Term Debt $ 29,215
Total Reductions in Long-Term Debt $ 26,108
Less: Payments for Compensated Absences (859)
Less: Interest Paid or Written Off on Interfund Advances (2,869) -
Less: Payments to Escrow Account (9,210)
Less: Employer Contributions to Pension Trust Fund (1.559)
Principal Paid on General Long-Term Debt $ 11.611
a. 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 5.8%
Interest Payment Dates February I"and August I"
Principal Payment Dates August lac
Purpose of Debt Refinance 1986 Civic Improvement
Corporation Certificates of Participation
Debt service requirements to maturity are (in thousands):
Year Ending
September 30, Principal Interest Total
2000 $ 670 $ 990 $ 1,660
2001 705 957 1,662
2002 745 920 1,665
2003 785 880 1,665
2004 825 838 1,663
Thereafter 14,300 5,631 19,931
Total $ 18,030 10,216 $ 28,246
See independent auditors' report.
-42 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
b. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of Participation
(Police Administration Project):
Year of Issuance 1993
Type of Debt Refunding Certificates of Participation
Security Lease on Civic Buildings
Original Issuance Amount $16,350,000
Interest Rates 4.0%to 5.7%
Interest Payment Dates February 1st and August I"
Principal Payment Dates August 0
Purpose of Debt Refinance 1989 Civic Improvement
Corporation Certificates of Participation
Debt service requirements to maturity are(in thousands):
Year Ending
September 30, Principal Interest Total
2000 $ 405 758 1,163
2001 425 738 1,163
2002 450 718 1,168
2003 470 694 1,164
2004 495 670 1,165
Thereafter 11,680 5,880 17,560
Total 13_,925 9,458 23,383
c. 1999 Tax Allocation Refunding Bonds:
Year(s)debt incurred 1999
Type of debt Tax Allocation Refunding Bonds
Interest rate 3.00%to 5.05%
Interest payment dates August I"and February 1st
Principal payment dates August 1"'
Original principal amount $10,835,000
Current principal amount $10,340,000
Purpose of debt Prepay Agency's 1992 Loans to
Public Financing Authority
Security for debt Redevelopment Agency Tax Increment, excluding
Low-Income Housing Amounts
See independent auditors' report.
-43 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
c. 1999 Tax AIlocation Refunding Bonds (Continued):
Debt service requirements to maturity are as follows (in thousands):
Year Ending
September 30 Principal Interest Total
2000 $ 280 $ 458 $ 738
2001 290 449 739
2002 300 439 739
2003 310 429 739
2004 320 418 738
Thereafter 8,840 4,584 13,424
Total $ 10,340 $ 6,777 $ 17,117
1999 Tax Allocation Refunding Bonds were issued in January 1999 to defease a portion of the
advances payable to the Huntington Beach Public Financing Authority.The refunding resulted in
an economic gain of$881,000 and additional cash flows of$802,000.
d. Mayer Disposition and Development Agreement:
In fiscal year 1996-97, the Agency entered into a disposition and development agreement with
Robert Mayer Corporation (Corporation) concerning additional development adjacent to the
Waterfront Hotel.Under the agreement,the Corporation would advance payments for the project
costs with the Agency reimbursing up to$16,000,000 of the costs.As of September 30, 1999,the
Agency obligation under the agreement amounted to$10,142,000. These amounts will be repaid
by project generated revenues as available over the time needed to fully amortize the advance.
e. Compensated Absences Payable:
There is no fixed payment schedule to pay the governmental fund liability of$5,462,833 for
compensated absences through September 30, 1999.
See independent auditors' report.
-44-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
f Long-Term Advances from Other Funds:
There is no fixed payment schedule for the various interfund advances listed below(in thousands):
GENERAL FUND:
Direct advances from 1979 to 1987 to Redevelopment Agency 9,991
Direct cash advances from proceeds of 1988 Public Financing
Authority Revenue Bonds repaid to General Fund 4,445
Indirect advances from Redevelopment Agency from 1987 to 1996 .6,635
Land sales to Redevelopment Agency from 1982 to 1992 32,833
Interest on above accounts 27,112
Total Debt 81,016
Less estimated uncollectible amounts (55,265)
TOTAL GENERAL FUND 25,751
SPECIAL REVENUE FUNDS:
Park Acquisition and Development Fund:
Land Sale in 1993 to Redevelopment Agency 1,741
Deferred development fees—Redevelopment Agency 249
Interest on above amounts 1,903
Total Advances from Park Acquisition and Development Fund 3,892
Sewer Fund:
Advance 1990/91 to Redevelopment Agency 130
Deferred development fees—Redevelopment Agency 38
Interest on above amounts 113
Total Advances from Sewer Fund 281
Drainage Fund:
Advance 1987/88 —Redevelopment Agency 250
Deferred development fees—Redevelopment Agency 54
Interest on above amounts 228
Total Advances from Drainage Fund 532
Gas Tax Fund:
Advance in 1988/89—Redevelopment Agency 500
Interest on above amounts 596
Total Advances from Gas Tax Fund 1,096
TOTAL-SPECIAL REVENUE FUNDS 5,801
See independent auditors' report.
-45 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September-3 0, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
f Long-Terra Advances from Other Funds(Continued):
DEBT SERVICE FUNDS:
Public Financing Authority:
Advances in 1991/92--Redevelopment Agency $ 19,324
CAPITAL PROJECTS FUNDS:
Capital Improvement Fund:
Advance in 1989/90—Redevelopment Agency 200
Interest on above amounts 199
Total Capital Improvement Fund 399
Low-Income Housing Fund:
Advances for Educational Revenue Augmentation Fund 732
Advances to Redevelopment Capital Projects Fund 1,362
Total Low-Income Housing Fund 2,094
TOTAL CAPITAL PROJECTS FUNDS 2,493
ENTERPRISE FUNDS:
Water Fund:
Advances from 1986/87 to 1988/89—Redevelopment Agency 1,138
Advances from Water Fund to Pier Rebuilding Fund 2,500
Interest on above amounts 2,890
TOTAL ENTERPRISE FUNDS 6,528
TOTAL ADVANCES FROM OTHER FUNDS $ 59,897
These advances are classified between the Redevelopment Agency and Other Advances as follows
(in thousands):
Redevelopment Agency Advances $ 55,935
Other Advances 3,962
Total $ 59,897
The changes during the year were as follows(in thousands):
-f
Advances, October_1, 1998 $ 67,264
Advances Repaid (9,320)
Accrued Interest Net of Uncollectible Amounts Reported
on Other Funds as Deferred Revenue 1,953
Advances, September 30, 1999 $ 59,897
See independent auditors' report.
-46 -
CITY OF HUNTINGTON BEACH
NOTES TO YINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
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 1 S` and February 1"
Principal Payment Dates August Is'
Purpose of Debt Provide funds to amend agreements with Robert
Mayer Corporation,remove restrictive covenants
on,and refinance 1988 Public Financing Authority
Revenue Bonds
Debt service requirements to maturity are (in thousands):
Year Ending
September 30, Principal Interest Total
2000 $ 390 $ 1,484 $ 1,874
2001 425 1,459 1,884 -
2002 450 1,431 1,881
2003 490 1,401 1,891
j 2004 520 1,366 1,886
Thereafter 19,000 15,207 34,207
I
;E
Total $ 21,275 $ 22.348 $ 43.623
r
See independent auditors' report.
- 47-
i
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
h. Notes Payable:
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
Purpose of Debt Purchase of property
Debt service requirements to maturity are (in thousands):
Year Ending
September 30, Principal Interest Total
2000 $ 52 $ 47 $ 99
2001 52 47 99
2002 52 42 94
2003 295 42 337
Total $ 451 $ 178 $ 629
i
See independent auditors' report.
-48 -
CITY OF HUNTINGTON BEACH
NOTES TO FTNANCIAL-STATEMENTS
of
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
i. 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 lst
Principal Payment Dates September 2nd
Purpose of Debt Capital improvements
Debt service requirements to maturity are (in thousands):
Year Ending
September 30, Principal Interest Total
2000 $ 65 $ 83 $ 148
2001 70 78 148
2002 85 72 157
2003 90 65 155
I 2004 95 58 153
Thereafter 625 161 786
i
Total , 1,030 $ 517 $ 1,547
5
[
E .
See independent auditors report.
-49 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
12. GENERAL LONG-TERM DEBT(CONTINUED):
j. Public Financing Authority 1997 Lease Revenue Bonds:
Year of Issuance 1997
Type of Debt Lease Revenue Bonds
Security Lease Agreement with City for Central Library
Original Issuance Amount Total Issue $8,070,000:
Pier Plaza Portion-$3,385,000
800 MHZ Portion-$4,235,000
Interest Rates 5.00%to 5.50%
Interest Payment Dates June 15th and December 15th
Principal Payment Dates December 15th -
Purpose of Debt Construct Pier Plaza and Purchase 800 MHZ System
Debt service requirements to maturity are(in thousands):
Year Ending
September 30. Principal Interest Total
2000 $ 420 $ 375 $ 795
2001 440 354 794
2002 510 330 840
2003 555 303 858
2004 575 275 850
Thereafter 4,940 2,704 7,544
Total 7,440 $ 4,341 $ 11,781
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k. Net Pension Benefit Obligation:
a
There is no fixed repayment schedule to fund the unfunded pension benefit obligation totaling
$7,244,000 for the City's Retirement Supplement Plan as described in Note 7.The amount will be
j funded through a contribution rate determined by an independent actuarial study.This amount is
1 significantly less than the total unfunded liability for this plan since actuarial studies only began
in 1991 which was after the plan was in place
I
See independent auditors' report.
- 50-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999 >
12. GENERAL LONG-TERM DEBT(CONTINUED):
1. Energy Conservation Loan:
Year of Issuance 1995
Type of Debt Note Payable--State of California
Security Loan Agreement
Original Issuance Amount $308,000
Interest Rates 6.1%
Interest Payment Dates December 22"d and June 22"d
Principal Payment Dates December 22"d and June 22"d
Purpose of Debt Capital improvements
There is no fixed repayment schedule at this time.
13. PROPRIETARY FUND LONG-TERM DEBT:
Below is a summary of changes in proprietary fund long-term debt for the year as well as how the debt
is reported in the accompanying financial statements(in thousands):
Internal
Enterprise Service
Funds Funds Total
Advances from Other Funds $ 244 $ - $ 244
Certificates of Participation 5,105 - 5,105
Leases Payable 46 1,587 1,633
Claims Payable 9,982 9,982
Compensated Absences 333 . 50 383
Total 5,728 $ 11,619 $ 17,347
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See independent auditors' report.
- 51 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
E
13. PROPRIETARY FUND—LONG-TERM DEBT(CONTINUED):
October 1, 1998 Additions Deletions Sept. 30, 1999
1991 Emerald Cove
Certificates of
Participation $ 5,205 $ - $ 100 $ 5,105
Compensated
Absences 375 8 - 383
Advances from
Other Funds 244 - - 244
Leases Payable 2,215 - 582 1,633
Claims Payable 11,774 7,930 9,722 9,982
Total $ 19,813 $ 7,938 $ 10,404 $ 17,347
a. 1991 Emerald Cove Certificates of Participation(Redevelopment Agency):
Year of Issuance 1991
Type of Debt Certificate of Participation
Security Lease With City for Apartment Complex
Original Issuance Amount $5,740,000
Interest Rates 4.8%to 7.0%
Interest Payment Dates March ls`and September 15`
Principal Payment Dates March 1s`
Purpose of Debt Refinance 1984 Emerald Cove Certificates
of Participation
Debt service requirements to maturity are (in thousands):
Year Ending
September 30 Principal Interes
t Tot
al
2000 $ 110 $ 357 $ 467
2001 115 351 466
2002 120 344 464
2003 130 337 467
2004 140 329 469
Thereafter 4,490 3,320 7,810
Total 5,105 T 5,038 10143
See independent auditors' report.
- 52-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
13. PROPRIETARY FUND—LONG-TERM DEBT(CONTINUED):
b. Compensated Absences:
I
There is no fixed repayment schedule to pay the compensated absences for proprietary fund types
of$383,000 at year-end.
c. Advances from Other Funds:
There is no fixed repayment schedule to repay the amounts advanced from the Park Acquisition
and Development Fund(a special revenue fund)to the Emerald Cove Housing Fund(an enterprise
fund)of$244,000 at year-end.
d. Leases Payable:The City entered into capital leases for various equipment replacement items:
Year of Issuance 1993 through 1998
Type of Debt Capital Lease
Security Lease Agreement
Original Issuance Amount Varies($93,000 to$1,200,000)
Interest Rates 5.0%to 6.9%
Interest Payment Dates Monthly, Quarterly, Semi-Annually
Principal Payment Dates Monthly, Quarterly, Semi-Annually
Purpose of Debt Acquire Equipment
The future minimum required lease payments are (in thousands):
Year Ending
September 30, Total Payment
2000 $ 634
2001 522
2002 448
2003 252
Total Minimum Lease Payments 1,856
Less Interest (223)
$ Total Present Value of
Future Minimum Lease Payments $ 11633
e. Claims Payable:
There is no fixed repayment schedule for estimated claims payable of$9,982,000 at year-end (see
Note 9).The City will pay the claims when it reaches final settlements on outstanding litigation.
See independent auditors' report.
- 53 -
6
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
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:
1992 Public Financing Authority Revenue Bonds (partial refunding) 10,080,000
b. Community Facilities District 1990/91 Special Assessment Tax Bonds:
Year of Issuance 1990
Type of Debt Community Facilities District Assessment Bonds
Security Special Tax Levies
Original Issuance Amount $2,400,000
Interest Rates 6.35%to 7.60%
Interest Payment Dates April 0 and October Is'
Principal Payment Dates October I't
Purpose of Debt Public improvements and police and fire services
These bonds are excluded from the accompanying financial statements since the City is not liable
to make any payment on the bonds if taxes collected are not sufficient to pay the debt service.The
amount of debt outstanding was$2,185,000 at September 30, 1999.
Debt service requirements to maturity are (in thousands):
Year Ending
September 30, Principal Interest Total
2000 40 164 204
2001 45 161 206
2002 45 158 203
2003 50 154 204
2004 so 154 204
Thereafter 1,955 1,508 3,463
Total 2,185 2,299 4,484
See independent auditors' report.
- 54-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
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:
Amount
Outstanding Amount
Bond Issue Sept. 30 1999 Issued
Five Points Senior Project Multi-Family
Housing Revenue Bonds--Series A-- 1991 $ 9,500,000 $ 9,500,000
Seabridge Villas Project Multi-Family Housing
Revenue Bonds--Series A— 1985 22,200,000 25,000,000
Huntington Village Senior Apartments 1997
Revenue Bonds 4,895,000 7,700,000
Huntington Breakers Mortgage Revenue Bonds
Refunding Issue— 1996 Series A 16,000,000 16,000,000
r
15. FIXED ASSETS AND CAPITAL LEASES: -
a. Changes in Fixed Assets:
the in changes�
The g general fixed assets account group for the year are (in thousands):
October 1, 1998 Additions Dispositions Sept. 30, 1999
Land $ 74,991 $ 247 $ 824 $ 74,414
Buildings 66,646 2,024 387 68,283
Other 2,162 - - 2,162
Construction
t, in Progress 1,568 2,537 2,022 2,083
Joint Ventures 1,136 - 1 1,135
Total $ 146,503 $ 4,808 1 3,234 $ 148,077
See independent auditors' report.
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- 55 - 3
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
15. FIXED ASSETS AND CAPITAL LEASES (CONTINUED):
a. Changes in Fixed Assets (Continued):
The changes in the proprietary fund fixed assets for the year are(in thousands):
October 1, 1998 Additions Dispositions Sept. 30, 1999
Enterprise Funds:
Land $ 2,438 $ - $ - $ 2,438
Buildings 8,059 - - 8,059
Construction
in Progress 7,571 1,507 1,347 7,731
Machinery and -
Equipment 57,210 1,853 182 58,881
Total Cost 75,278 3,360 1,529 77,109
Less Accumulated
Depreciation (34,835) (1,584) 141 (36,278}
Net Book Value
Enterprise Fund $ 40,443 $ 1,776 $ 1,388 $ 40.831
October 1, 1998 Additions Dispositions Sept. 30, 1999
a Internal Service Funds:
Machinery and
Equipment $ 37,629 $ 1,917 $ 1,878 $ 37.;668
a
Construction
in Progress 4,432 - - 4,432
Total Cost 42,061 1,917 1,878 42,100
Less Accumulated
Depreciation 25 784) (2,626) 1,482 (26,928}
Net Book Value
Enterprise Fund $ 16.277 (709) $ 396 15.172
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See independent auditors report.
56-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
15. FIXED ASSETS AND CAPITAL LEASES (CONTINUED):
b. Leases:
The City has various lease agreements that qualify as capital leases involving a helicopter, sewer
truck. fire truck,sweepers,asphalt truck,backhoe and trailer,mowers,office equipment,and aerial
devices.
The equipment is carried in the accompanying financial statements as follows(in thousands):
Machinery and Equipment $ 4,339
Less Accumulated
Depreciation (1,301)
Carrying Value $ 3.038
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.
See independent auditors' report.
-57-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
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 for which the City has made tentative plans to use in a future period.The
City's reserves and designations in governmental funds at year end are(in thousands):
Special Debt Capital
General Revenue Service Projects Trust
Fund Funds Funds Funds Funds Total
Reserves:
Encumbrances 2,868 3,149 S 2,688 $ 8,705
Long-term
receivables 20,284 881 19,324 4,807 45,296
Pension benefits 4,128 4,128
Employee benefits 361 361
Land held for
resale 17,018 17,018
Debt service - 10,655 - 10,655
Inventory 476 - 476
Low income
housing 2,879 2,879
Total
Reserves 23,628 4,030 29,979 27,392 4-489 89,518
Designations:
Future
expenditures 6,035 3,935 2,449 12,419
Economic
uncertainties 3,000 .3,000
Total
Designations 9,035 3,935 - 2.4 15,419
TOTAL
RESERVES AND
DESIGNATIONS S 32663 7,965 29,979 29,841 4,489 104,937
See,independent auditors' report.
-58 -
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
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. 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/Costa Mesa withdraw from
CNOA prior to August 20,2021 the City shall reimburse them by an amount equal to 1/5&of their
contributions. At year-end these amounts totaled $366,000.
c. Townsquare Commercial Loan:
During 1995 the Redevelopment Agency and the Resolution Trust Corporation (RTC) sold the
interest in the Townsquare development for$820,000.The Agency/RTC financed$799,000 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.
d. Huntington Beach Union High School District(HBUHSD) Sharing Agreement:
In 1997 the City Council agreed to pay the HBUHSD certain increased sales tax revenues relating
to the development of a new commercial site by Home Depot.The City will retain the first$50,000
of annual increased sales tax revenues and will pay HBUHSD a portion of the amount over
$50,000 until the year 2015/2016.
e. CALPERS:
CALPERS has indicated that the City may be responsible for paying an unfunded liability of
approximately $13 million associated with 153 employees' conversion of certain benefits to
compensation in fiscal year 1993/94.
See independent auditors' report.
- 59-
CITY OF HUNTINGTON BEACH
j NOTES TO FINANCIAL STATEMENTS
I (CONTINUED)
September 30, 1999
17. COMMITMENTS AND CONTINGENCIES (CONTINUED):
f. CIM Group, LLC Disposition and Development Agreement:
In:June 1999, the Redevelopment Agency entered into a disposition and development agreement
with the CIM Group,LLC to allow development of a hotel,retail and restaurant improvements and
a public parking facility.The project costs are to be paid initially by the developer with the Agency
reimbursing the developer a maximum of$900,000 plus project costs exceeding$45,800,000.
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(in thousands): -
General Fixed Assets Account Group:
Central Net Operations Authority $ 107
Metro Cities Fire Authority 297
1 Public Cable Television Authority 741
Total General Fixes Assets Account Group 1,135
Joint Venture Amounts Reported in Proprietary Funds:
San Joaquin Reservoir Trust 202
Reported as Part of Other Balance Sheet Amounts:
Reported as Part of Water Fund Cash:
West Orange County Board . 264
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Total Joint Venture Amounts $ 1,601
a. 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. The City of Huntington Beach acts as fiscal agent for CNOA. Each
member agency is billed for a portion of the operating costs.Other non-member local governments
are allowed to participate in certain training programs for a fee. In June 1996, the member cities
agreed to eliminate the communications services provided by CNOA. These services became the
responsibility of a new and independent joint powers authority,funded by seven participating cities
(see Note 19b).
See independent auditors'report.
-60-
CITY OF HUNTINGTON BEACH
NOTES TO'FINANCIAL STATEMENTS'
(CONTINUED)
September 30, 1999
18. JOINT VENTURES (CONTINUED):
a. Central Net Operations Authority (Continued):
Central Net is governed by a three 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 13.67%
Newport Beach 50.00%
Fountain Valley 36-33%
Total 100,00%
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 Central Net are available from City of Huntington Beach
Administrative Services Department.
b. Metro Cities Fire Authority;
In July, 1996 the Metro Cities Fire Authority(the Fire Authority) was created by a joint-powers
agreement between the Cities of Anaheim, Fountain Valley,Newport Beach,Huntington Beach,
Garden Grove, Orange and Fullerton.
The agreement provides fire suppression,emergency medical assistance,rescue service,and related
services of the members to a central communication network and record keeping systems.
Members of the governing board are appointed by each member city. The City of Anaheim acts
as fiscal agency for the Fire Authority. The Fire Authority collects contributions from each
member agency based upon each entity's share of the total recorded incidents in the calendar year
preceding the fiscal year. The City's equity interest of 25% (based on assessments charged for
fiscal year 98-99)of the total net assets of the Metro Cities Fire Authority$1,148,834 is recorded
in the General Fixed Assets Account Group.
See independent auditors' report.
-61 -
CITY OF HUNTINGTON BEACH
� NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
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 participant's share of the PCTA is:
l Agency Percent
City of Huntington Beach 62.6%
City of Stanton 5.9%
City of Fountain Valley 15.90/0
City of Westminster 15.6%
Total 100.00°/a
The City's equity interest is recorded in the general fixed assets account group. Separate audited
financial statements are available from PCTA.
d. West Orange County Water Board(WOCWB):
g ty ( }
The City is involved in a joint-venture with the Cities of Westminster Seal Beach and Garden
Grove formed in 1955 to provide for the operation and maintenance of water transportation.
WOCWB is governed by a five member board.The City appoints two members while each other
participant appoints one member each. Thus no participant appoints a voting majority. The City
acts as fiscal agent for WOCWB and retains 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
i 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 Fund's cash and
investments. WOCWB has no long-term debt and no plant,property and equipment.
Each participants' share of the assets, liabilities and fund equities are:
Agengy Percent
City of Huntington Beach 55.0%
City of Garden Grove 5.3%
City of Seal Beach 14.7%
City of Westminster 25.0%
Total 100.00%
See independent auditors' report.
-62-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
18. JOINT VENTURES (CONTINUED):
e. San Joaquin Reservoir Trust:
In 1980 the City entered into a joint venture agreement with seven other entities for the operation
and use of the San Joaquin Reservoir.The entity's official name is the San Joaquin Reservoir Trust
(the Reservoir Trust). The Metropolitan Water District of Southern California(MWD) operates
the reservoir and acts as administrator.The entity is not active and the.City is negotiating to sell
its interest in the joint venture.
Separate reviewed financial statements are available from the Reservoir Trust.
19. OTHER INFORMATION:
a. Expenditures Exceeding Appropriations:
Expenditures exceeded appropriations at the departmental level in the funds shown in thousands):
General Fund:
City Council $ 15
City Treasurer 26
Community Services 77
Library Services 62
Nondepartmental 3,712
Special Revenue Fund:
Gas Tax—Capital Outlay 2,532
Sewer- City Attorney 31
Grants- Fire 31
Fourth of July Parade-Community Services 28
Library Service—Library Service 3
Library Service-Public Works I
Debt Service Funds:
Redevelopment Agency—Debt Service 9,670
Reservoir Hill Assessment District-Interest I
Civic Improvement Corporation-Interest 23
See independent auditors' report.
-63 -
.... ................. .........................
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
September 30, 1999
19. OTHER INFORMATION (CONTINUED):
b. Fund and Accumulated Deficits:
The following governmental funds had total fund deficits at year-end(in thousands):
Special Revenue Funds:
Narcotics Forfeiture $ 5
Capital Projects Fund:
Pier Plaza 496
These deficits will be eliminated through monitoring of expenditures.
The following proprietary funds had accumulated deficits at year-end(in thousands):
Enterprise Funds:
Emerald Cove Housing $ 38
Refuse Collection 253
Cultural Affairs 522
Internal Service Fund:
Medical Insurance 946
Workers' Compensation Insurance 5,341
General Liability Insurance 1,579
The deficits in the Emerald Cove Fund will be eliminated through increased rents and user charges.
The deficit in the Refuse Collection will be eliminated through an increase in rates. The deficit in
the Cultural Affairs Fund will be eliminated through increased donations.The deficit in the Internal
Service Insurance Funds will be eliminated by increasing charges to other funds.
c. Supplemental Appropriations:
During the year various supplemental appropriations were necessary for items that were not
originally budgeted.
See independent auditors' report.
-64
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SUPPLEMENTARY INFORMATION—
' COMBINGING FINANCIAL STATEMENTS AND SCHEDULES OF
+ INDIVIDUAL FUNDS AND ACCOUNT GROUPS
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CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
3
(CONTINUED)
September 30, 1999
20. SUBSEQUENT EVENTS:
In October 1999,the City issued$16,400,000 in Tax and Revenue Anticipation Notes due October 4,
2000 bearing interest at 4.25%.
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See independent auditors' report.
-65
GENERALFUND
The General Fund accounts for activity not required to be accounted fcr in another fund.
-66 -
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CITY OF HUNTINGTON BEACH
1
COMPARATIVE BALANCE SHEET
GENERALFUND
September 30, 1999 and 1998
(In Thousands)
1999 1998
ASSETS
Cash and investments $ 10,069 $ 2,417
Taxes receivable 14,697 12,834
Other receivables 1,088 1,195
Due from other funds 200 155
Unbilled receivables 660 573
Inventory 476 370
Advances to other funds 25,751 24,934
Deposits and other assets - 109
TOTAL ASSETS $ 52,941 $ 42,587
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts payable $ 4,366 $ 1,813
Other accrued liabilities - 3,605
Deposits 626 803
Other deferred revenue 5,030 3,561
TOTAL LIABILITIES 10,022 . 9,782
FUND BALANCE:
Reserved for:
Encumbrances 2,868 2,064
Long-term receivable from other funds 20,284 21,373
Inventory 476 370
Unreserved:
Designated for future expenditures 6,035 2,022
Designated for economic uncertainties 3,000 3,000
Undesignated 10,256 3,976
TOTAL FUND BALANCE 42,919 32,805
TOTAL LIABILITIES AND FUND BALANCE $ 52,941 $ 42,587
-67-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL FUND
For the year ended September 30,1999
With comparative actual amounts for the year ended September 30, 1998
(In Thousands)
1999 1999
Variance
Favorable
Budget Actual (Unfavorable) Actual
REVENUES:
Property taxes $ 27,869 $ 29,320 $ 1,451 $ 27,585
Other taxes 42,280 46,419 4,139 42,674
Licenses and permits 5,846 7,050 1,204 6,529
Fines,forfeitures and penalties 3,094 2,744 (350) 2,649
From use of money and property 6,170 6,379 209 7,178
From other agencies 9,976 11,780 1,804 10,528
Charges for current service 9,678 9,076 (602) 9,662
Other 1,002 2,899 1,897 1,137
TOTAL REVENUES 105,915 115,667 9,752 107,942
EXPENDITURES:
1 GENERAL GOVERNMENT:
City Council 260 275 (15) 207
City Administrator I,154 1,114 40 694
City Treasurer 920 820 100 805
City Attorney 1,694 1,720 (26) 1,521
City Cleric 551 474 77 434
Administrative services 3,067 2,876 191 3,056
Community development 4,322 4,067 255 3,919
Fire 16,583 15,545 1,038 16,362
Police 34,930 33,728 1,202 33,508
Economic development - - - 10
Community services 7,551 7,629 (77) 7,140
Library services 2,895 2,957 (62) 2,736
Public works 17,799 16,993 906 16,791
Nondepartmental 9,113 12,825 (3,712) 14,270
Capital outlay 3,778 1,303 2,475 1,588
Debt service:
Interest 994 825 69 834
TOTAL EXPENDITURES 105,511 103,050 2,461 iO3,875
EXCESS OF REVENUES OVER EXPENDITURES 404 12,617 12,213 4,067
OTHER FINANCING SOURCES(USES):
Operating transfers in 1,915 2,038 123 2,402
Operating transfers out (7,717) (4,541) 3,176 (8,224)
TOTAL OTHER FINANCING SOURCES(USES) (5,802) (2,503) 3,299 (5,822)
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (5,398) 10,114 15,512 (1,755)
FUND BALANCE AT BEGINNING OF YEAR 32,805 32,805 - 34,500
RESIDUAL EQUITY TRANSFERS IN - - 60
FUND BALANCE AT END OF YEAR $ 27,407 $ 42,919 $ 15,512 $ 32,805
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- 69-
SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues and expenditures legally restricted to a specific purpose.
The Gas Tax Fund accounts for moneys 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 moneys received from the State of California for special law
enforcement expenditures.
The Transvortation Fund accounts for moneys received from the countywide %cent sales tax and-bther
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 moneys received from the traffic impact fee levied on new
developments in the City.
The Fourth of July Parade Fund accounts for the activities of the City's annual parade.
The Library Services Fund accounts for revenues and expenditures related to the expanded Central Library
including some construction.
'^r 3
- !7 V -
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands) I.
i;
Gas Public
Tax Sewer Drainage Communications Grants
ASSETS
Cash and investments $ 1,193 $ 1,800 $ 1,844 $ 59 $ 1,654
Taxes receivable 326 - - - -
Other receivables 26 28 19 100 4,537
Deposits and other assets - - - - -
Due from other funds - 41 - - -
Advances to other funds 1,096 281 532 - -
TOTAL ASSETS $ 2,641 $ 2,150 $ 2,395 $ 159 $ 6,191
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ 6 $ 3 $ 7 $ 6 $ 625
Other accrued liabilities 12 3 3 8 22
Due to other funds - - - 22 -
Deferred revenue 596 150 290 - 2,825
TOTAL LIABILITIES 614 156 300 36 3,472
FUND BALANCES:
Reserved for:
Encumbrances 81 157 46 22 1,537
Long-term receivables from other funds 500 131 250 - -
Unreserved:
i'
Designated for future expenditures - - 897 101 1,182
Undesignated 1,446 1,706 902 - -
TOTAL FUND BALANCES(DEFICIT) 2,027 1,994 2,095 123 2,719 \;
TOTAL LIABILITIES AND FUND BALANCES $ 2,641 $ 2,150 $ 2,395 $ 159 $ 6,191
I
i
-71 -
i
Park
Acquisition Traffic Fourth
and Narcotics Air Impact of July Library Totals
Development Forfeiture Transportation Quality Fee Parade Services 1999 1998
$ 1,372 $ 16 $ 4,007 $ 725 $ 1,364 $ 32 $ 443 $ 14,509 S 11,751
326 313
7 4 10 11 22 1 3 4,768 1,164
2,851 - - - - - - 2,851 2,856
290 - 46 - - - - 377 389
4,136 - - - - - - 6,045 5,737
$ 8,656 $ 20 $ 4,063 $ 736 S 1,386 $ 33 $ 446 $ 28,876 $ 22,209
$ 104 S - $ 36 $ - $ - $ - $ 14 S 801 $ 641
- 5 14 - 2 - 2 71 68
- 20 - - - - 336 378 391
6,987 - - - - - - 10,848 8,321
7,091 25 50 - 2 - 352 12,098 9,421
204 - 1,042 37 21 - 2 3,149 3,070
881 873
-. - 1,334 412 - 9 - 3,935 2,142
1,361 (5) 1,637 287 1,363 24 92 8,813 6,703
1,565 (5) 4,013 736 1,384 33 94 16,778 12,788
S 8,656 S 20 $ 4,063 $ 736 $ 1,386 $ 33 $ 446 $ 28,876 $ 22,209
72-
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES;EXPENDITURES AND
CHANGES IN FUND BALANCES-ALL SPECIAL REVENUE FUNDS
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Gas Public
Tax Sewer Drainage Communications Grants
REVENUES:
Other taxes
Licenses and permits - 78 739
From use of money and property 47 66 65 - 52
From other agencies 6,113 - - 438 4,571
Charges for current service - - - 5 -
Other - - - - 715
TOTAL REVENUES 6,160 144 804 443 5,338 -
EXPENDITURES:
Current:
City Adminstrator - 31 - 424 -
Fire _ _ _ _ 94
Police - - - - 288
Economic development - - - 2,174
Community services - - - - I I
Library services - - - - 62
Public works 312 1.14 64 - 54
Capital outlay 4,088 260 538 21 1,976
TOTAL EXPENDITURES 4,400 405 ' -602 445 4,659
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 1,760 (261) 202 (2) 679
OTHER FINANCING SOURCES(USES):
Operating transfers in - - - 405
Operating transfers out (1,700) (125) (25) (60)
TOTAL OTHER FINANCING SOURCES(USES) (1,700) (125) (25) - 345
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES 60 (386) 177 (2) 1,024
FUND BALANCES(DEFICITS)-
BEGINNING OF YEAR 1,967 2,380 1,918 125 1,695
FUND BALANCES(DEFICITS)-END OF YEAR. $ 2,027. $ 1,994 $ 2,095 $ 123 $ 2,719 '
-73- s
Park
Acquisition Traffic Fourth
and Narcotics Air -Impact of July Library Totals
Development Forfeiture Transportation Quality Fee Parade Services 1999 1998
$ - S - $ 1,571 $ - S - $ - $ - $ 1,571 $ 1,488
2,049 - - - 312 - - 3,178 1,578
- - 115 21 46 - 270 682 1,173
276 71 207 - - - 11,676 10,988
- - - - 474 479 485
191 15 33 315 27 1,296 355
2,049 276 1,948 243 391 315 771 18,882 16,067 _
- - - - - - 455 398
94 6
327 - - - - - 615 619
- - - - - - - 2,174 1,673
435 - - - - 270 - 716 578
- - - - - - 224 286 212
- - 801 26 - - 1 1,372 1,740
638 - 474 - 65 - - 8,060 7,193
1,073 327 1,275 26 65 270 225 13,772 12,419
976 (51) 673 217 326 45 546 5,110 3,648
- 717 - - - - 1,122 86
(332) (2,242) (3,080)
717 - - - (332) (1,120) (2,994)
a
976 (51) 1,390 217 326 45 214 3,990 654
589 46 2,623 519 1,058 (12) (120) 12,788 12,134
$ 1,565 $ (5) $ 4,013 S 736 $ 1,384 $ 33 $ 94 $ 16,778 $ 12,788
-74-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES;EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GAS TAX SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 50 $ 47 $ (3)
From other agencies 6,010 6,113 103
TOTAL REVENUES 6,060 6,160 100
EXPENDITURES:
Current:
Public works 2,838 312 2,526
Capital outlay 1,736 4,088 (2,352)
TOTAL EXPENDITURES 4,574 4,400 174
EXCESS OF REVENUES,
OVER(UNDER)EXPENDITURES 1,486 1,760 274
OTHER FINANCING USES:
Operating transfers out (1,700) (1,700) -
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (214) 60 274
FUND BALANCE-BEGINNING OF YEAR 1,967 1,967 -
FUND BALANCE-END OF YEAR $ 1,753 $ 2,027 $ 274
-75-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
SEWER SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 100 $ 78 $ (22)
From use of money and property - 66 66
Other 20 - (20)
TOTAL REVENUES 120 144 24
EXPENDITURES:
Current:
City Administrator - 31 (31)
Public works 313 114 199
Capital outlay 1,851 260 1,591
TOTAL EXPENDITURES 2,164 405 1,759
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (2,044) (261) 1,783
OTHER FINANCING USES:
Operating transfers out (125) (125) -
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (2,169) (386) 1,783
FUND BALANCE-BEGINNING OF YEAR 2,380 2,380 -
FUND BALANCE-END OF YEAR $ 211 $ 1,994 $ 1,783
-76-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
DRAINAGE SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits S 400 S 739 S 339
From use of money and property 24 65 41
Other 2 - (2)
TOTAL REVENUES 426 804 378
EXPENDITURES:
Current:
Public works 197 64 133
Capital outlay 1,111 538 573
TOTAL EXPENDITURES 1,308 602 706
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (882) 202 1,084
OTHER FINANCING USES:
Operating transfers out (25) (25) -
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (907) 177 1,084
FUND BALANCE-BEGINNING OF YEAR 1,918 1,918 -
FUND BALANCE-END OF YEAR S 1,011 S 2,095 S 1,084
-77-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURFS AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
PUBLIC COMMUNICATIONS SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 2 $ - $ (2)
From other agencies 501 438 (63)
Charges for current service - 5 5
Other 2 - (2)
TOTAL REVENUES 505 443 (62)
EXPENDITURES:
Current:
City Administrator 441 424 17
Capital outlay 21 21 -
TOTAL EXPENDITURES 462 445 17
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 43 (2) (45)
FUND BALANCE-BEGINNING OF YEAR 125 125 -
FUND BALANCE-END OF YEAR $ 168 $ 123 $ (45)
-78-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES;EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GRANTS SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 7 $ 52 $ 45
From other agencies 6,977 4,571 (2,406)
Other 1,425 715 (710)
TOTAL REVENUES 8,409 5,338 (3,071)
EXPENDITURES:
Current:
Fire 63 94 (31)
Police 775 288 487
Economic development 3,625 2,174 1,451
Community services 41 11 30
Library services 90 62 28
Public works 2,110 54 2,056
Capital outlay 8,015 1,976 6,039
TOTAL EXPENDITURES 14,719 4,659 10,060
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (6,310) 679 6,989
OTHER FINANCING SOURCES(USES):
Operating transfers in 171 405 234
Operating transfers out (350) (60) 290
TOTAL OTHER FINANCING SOURCES(USES) (179) 345 524
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (6,489) 1,024 7,513
FUND BALANCE-BEGINNING OF YEAR 1,695 1,695 -
FUND BALANCE-END OF YEAR $ (4,794) $ 2,719 $ 7,513
-79-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
PARK ACQUISITION AND DEVELOPMENT SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 230 $ 2,049 $ 1,819
From use of money and property 80 - (80)
From other agencies 75 - (75)
TOTAL REVENUES 385 2,049 1,664
EXPENDITURES:
Current:
Community services 563 435 128
Capital outlay 858 638 220
TOTAL EXPENDITURES 1,421 1,073 348
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (1,036) 976 2,012
FUND BALANCE-BEGINNING OF YEAR 589 589 -
FUND BALANCE-END OF YEAR $ (447) $ 1,565 $ 2,012
-80-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
NARCOTICS FORFEITURE SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 5 $ - $ (5)
From other agencies 503 276 (227)
TOTAL REVENUES 508 276 (232)
EXPENDITURES:
Current:
Police 454 327 127
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 54 (51) (105)
FUND BALANCE-BEGINNING OF YEAR 46 46 -
FUND BALANCE(DEFICIT)-END OF YEAR $ 100 $ (5) $ (105)
-81 -
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
TRANSPORTATION SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Other taxes $ 1,525 $ 1,571 $ 46
From use of money and property 150 115 (35)
From other agencies 1,866 71 (1,795)
Other - 191 191
TOTAL REVENUES 3,541 1,948 (1,593)
EXPENDITURES:
Current:
Public works 1,131 801 330
Capital outlay 3,904 474 3,430
TOTAL EXPENDITURES 5,035 1,275 3,760
EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (1,494) 673 2,167
OTHER FINANCING SOURCES(USES):
Operating transfers in 737 717 (20)
Operating transfers out (21) - 21
TOTAL OTHER FINANCING SOURCES(USES) 716 717 1 ,.
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (778) 1,390 2,168
FUND BALANCE-BEGINNING OF YEAR 2,623 2,623 -
FUND BALANCE-END OF YEAR $ 1,845 $ 4,013 $ 2,168
-82-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES 1N FUND BALANCE-BUDGET AND ACTUAL
AIR QUALITY SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 5 $ 21 $ 16
From other agencies 180 207 27
Other - 15 15
TOTAL REVENUES 185 243 58
EXPENDITURES:
Current:
Public works 419 26 393
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (234) 217 451
FUND BALANCE-BEGINNING OF YEAR 519 519 -
FUND BALANCE-END OF YEAR $ 285 $ 136 $ 451
-83-
i
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
TRAFFIC IMPACT FEE SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 400 $ 312 $ (88)
From use of money and property 13 46 33
'Other - 33 33
TOTAL REVENUES 413 391 (22)
EXPENDITURES:
Capital outlay 279 65 214
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 134 326 192
FUND BALANCE-BEGINNING OF YEAR 1,058 1,058 -
:FUND BALANCE-END OF YEAR $ 1,192 $ 1,384 $ 192
-84-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
FOURTH OF JULY PARADE SPECIAL REVENUE FUND
For the year ended September 30, 1999
(in Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 1 $ - $ (1)
Other 180 315 135
TOTAL REVENUES 181 315 134
EXPENDITURES:
Current:
Community services 242 270 (28)
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (61) 45 106
FUND BALANCE(DEFICIT)-BEGINNING OF YEAR (12) (12) -
FUND BALANCE-END OF YEAR $ (73) $ 33 $ 106
-85-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
LIBRARY SERVICE SPECIAL REVENUE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 187 $ 270 $ 83
Charges for current service 390 474 84
Other 60 27 (33)
TOTAL REVENUES 637 771 134
EXPENDITURES:
Current:
Library services 221 224 (3)
Public works - 1 (1)
TOTAL EXPENDITURES 221 225 (4)
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 416 546 130
OTHER FINANCING USES:
Operating transfers out (340) (332) 8
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES 76 214 138
FUND BALANCE(DEFICIT)-BEGINNING OF YEAR (120) (120) -
FUND BALANCE-END OF YEAR $ (44) $ 94 $ 138
-86-
THIS PAGE LEFT BLANK INTENTIONALLY
- 87 -
DEBT SERVICE FUNDS
Debt Service Funds account for the receipts for and payment of general long-term debt.
The Redevelopment Agency records the property tax increment revenues received from
Redevelopment projects. The tax increment repays the debt of the Redevelopment Agency.
The Public Financing Authority records the debt service activity of the Huntington Beach Public
Financing Authority.
The Reservoir Hill Fund records the debt service activity of the Reservoir Hill Assessment bonds.
The Civic Improvement Cor2oration Fund records the debt service activity of the Huntington Beach Civic
Improvement Corporation.
- 88 -
CITY OF HUNTINGTON BEACH
COMBINING'BALANCE SHEET
ALL DEBT SERVICE FUNDS
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Public
Redevelopment Financing
Agency Authority
ASSETS
Cash and investments $ 2,358 $ -
Cash with fiscal agent 772 2,824
Taxes receivable 1,249 -
Other receivables 146 55
Advances to other funds - 19,324
TOTAL ASSETS $ 4,525 $ 22,203
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ 70 $ -
FUND BALANCES:
Reserved for:
Long-term receivable from other funds - 19,324
Debt service 4,455 2,879
TOTAL FUND BALANCES 4,455 22,203
TOTAL LIABILITIES AND FUND BALANCES $ 4,525 $ 22,203
-89-
I
Reservoir Hill Civic
Assessment Improvement Totals
District Corporation 1999 1998
$ 266 $ - $ 2,624 $ 1,802
114 2,862 6,572 6,549
50 - 1,299 1,224
6 26 233 68
- - 19,324 28,144
$ 436 $ 2,888 $ 30,052 $ 37,787
$ 3 $ - $ 73 $ 76
- - 19,324 28,144
433 2,888 10,655 9,567
433 2,888 29,979 37,711
$ 436 $ 2,888 $ 30,052 $ 37,787
-90-
CITY OF HUNTINGTON BEACH
COMBINING`STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-ALL DEBT SERVICE FUNDS
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Public
Redevelopment Financing
Agency Authority
REVENUES:
Property taxes $ 4,838 $ -
From use of money and property 271 1,943
Otherrevenue 30 -
TOTAL REVENUES 5,139 1,943
EXPENDITURES:
Current:
Nondepartmental - -
Debt service:
Cost of issuance 361 -
Issuance discount 139 -
Principal 9,700 775
Interest 6,965 2,255
TOTAL EXPENDITURES 17,165 3,030
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (12,026) (1,087)
OTHER FINANCING SOURCES(USES):
Proceeds from long-term debt 15,542 -
Operating transfers in - 740
Payment to escrow agent (791) (9,210)
Operating transfers out (968) -
TOTAL OTHER FINANCING SOURCES(USES) 13,783 (8,470)
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES 1,757 (9,557)
FUND BALANCES-BEGINNING OF YEAR 2,698 31,760
RESIDUAL EQUITY TRANSFERS OUT - -
FUND BALANCES-END OF YEAR $ 4,455 $ 22,203
-91 -
Reservoir Hill Civic
Assessment Improvement Totals
District Corporation 1999 1998
$ 187 $ - $ 5,025 $ 4,892
25 149 2,388 2,708
- - 30 -
212 149 7,443 7,600
32 - 32 294
- - 361 -
- - 139 -
60 1,025 11,560 2,313
88 1,814 11,122 8,814
180 2,839 23,214 11,421
32 (2,690) (15,771) (3,821)
- - 15,542 1,179
2,726 3,466 3,278
- (10,001) -
- (968) (951)
2,726 8,039 3,506
32 36 (7,732) (315)
401 2,852 37,711 38,086
- - _ - (60)
$ 433 $ 2,888 $ 29,979 $ 37,711
-92-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
REDEVELOPMENT AGENCY DEBT SERVICE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 4,506 $ 4,838 $ 332
From use of money and property 131 271 140
Other revenue - 30 30
TOTAL REVENUES 4,637 5,139 502
EXPENDITURES:
Current:
Nondepartmental 136 - 136
Debt service:
Cost of issuance - 361 (361)
Issuance discount - 139 (139)
Principal 530 9,700 (9,170)
Interest 7,453 6,965 488
TOTAL EXPENDITURES 8,119 17,165 (9,046)
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (3,482) (12,026) (8,544)
OTHER FINANCING SOURCES(USES):
Proceeds from long-term debt 4,706 15,542 10,836
Payment to escrow agent - (791) (791)
Operating transfers out (883) (968) (85)
TOTAL OTHER FINANCING SOURCES(USES) 3,823 13,783 9,960
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES 341 1,757 1,416
FUND BALANCE-BEGINNING OF YEAR 2,698 2,698 -
FUND BALANCE-END OF YEAR $ 3,039 $ 4,455 $ 1,416
-93-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 3,466 $ 1,943 $ (1,523)
EXPENDITURES:
Debt service:
Principal 930 775 155
Interest 2,544 2,255 289
TOTAL EXPENDITURES 3,474 3,030 444
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (8) (1,087) (1,079)
OTHER FINANCING SOURCES(USES):
Operating transfers in - 740 740
Payment to escrow agent - (9,210) (9,210)
TOTAL OTHER FINANCING SOURCES(USES) - (8,470) (8,470)
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (8) (9,557) (9,549)
FUND BALANCE-BEGINNING OF YEAR 31,760 31,760 -
FUND BALANCE-END OF YEAR $ 31,752 $ 22,203 $ (9,549)
-94-
1
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
RESERVOIR HILL ASSESSMENT DISTRICT DEBT SERVICE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 250 $ 187 $ (63)
From use of money and property 16 25 9
TOTAL REVENUES 266 212 (54)
EXPENDITURES:
Current:
Nondepartmental 39 32 7
Debt service:
Principal 60 60 -
Interest 87 88 (1)
TOTAL EXPENDITURES 186 180 6
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 80 32 (48)
FUND BALANCE-BEGINNING OF YEAR 401 401 -
FUND BALANCE-END OF YEAR $ 481 $ 433 $ (48)
-95-
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
CIVIC IMPROVEMENT CORPORATION DEBT SERVICE FUND
For the year ended September 30, 1999
(In Thousands)
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ 175 $ 149 $ (26)
EXPENDITURES:
Debt service:
Principal 1,025 1,025 -
Interest 1,791 1,814 (23)
TOTAL EXPENDITURES 2,816 2,839 (23)
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (2,641) (2,690) (49)
OTHER FINANCING SOURCES:
Operating transfers in 2,650 2,726 76
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES 9 36 27
FUND BALANCE-BEGINNING OF YEAR 2,852 2,852 -
FUND BALANCE-END OF YEAR $ 2,861 $ 2,888 $ 27
-96-
THIS PAGE LEFT BLANK INTENTIONALLY
- 97 -
CAPITAL PROJECTS FUNDS
Capitol Projects Funds account for the acquisition and construction of capital assets other than those
financed by proprietary fund types.
The Redevelopment Agency 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.
The Capital Improvement Fund accounts for major capital improvements not made by other capital
projects funds or proprietary funds.
The Pier Rebuilding Fund accounts for the rebuilding of the City's pier.
The Mello-Roos Assessment District Fund accounts for expenditures made from the Community Facilities
District bonds.
The Parking In-Lieu Fund records construction activity from developers who pay fees in-lieu of directly
providing parking spaces in certain areas of the City.
The Holly Seacliffe Fund accounts for capital improvements mad to the Holly Seacliffe area.
The Pier Plaza Fund accounts for capital improvements for the Pier Plaza area.
The Library Cultural Facilities Fund accounts for the continued costs of the expansion of the City's Library
facilities related to the City's growth.
- 98 -
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
ALL CAPITAL PROJECTS FUNDS
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Low
Redevelopment Income Capital Pier
Agency Housing Improvement Rebuilding
ASSETS
Cash and investments $ 2,213 $ 2,956 $ 2,089� $ 1,692
Cash with fiscal agent - - - -
Taxes receivable 60 - - -
Other receivables 55 58 64 31
Long-term receivables 2,513 - 725 -
Due from other funds - - 484
Advances to other funds - 2,094 399 -
Land held for resale(net) 15,944 1,074 - -
TOTAL ASSETS $ 20;785 $ 6,182 $ 3,761 $ 1,723
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ 43 $ - $ 242 $ 1
Other accrued liabilities 21 - - 10
Deposits 129 - - -
Due to other funds - - -
Deferred revenue - - 924 -
TOTAL LIABILITIES 193 - 1,166 I 1
FUND BALANCES:
Reserved for:
Encumbrances 308 135 883 739
Long-tern receivables 2,513 2,094 200 -
Capital projects - - -
Land held for resale 15,944 1,074 - -
Low income housing - 2,879 - -
Unreserved:
Designated for future expenditures 1,827 - 622 -
Undesignated - - 890 973
TOTAL FUND BALANCES 20,592 6,182 2,595 1,712
TOTAL LIABILITIES AND FUND BALANCES $ 20,785 $ 6,182 $ 3,761 $ 1,723
-99-
Mello-Roos Library
Assessment Parking Holly Pier Cultural Totals
District In-Lieu Seacliffe Plaza Facilities 1999 1998
$ 10 $ 327 $ 598 $ - $ 540 $ 10,425 $ 12,934
306 - - 9 - 315 301
- - - - - 60 -
6 139 - 10 363 264
_ _ - 3,238 2,671
- 484 130
- 2;493 2,472
_ - - 17,018 18,513
$ 316 $ 333 $ 737 $ 9 $ 550 $ 34,396 $ 37,285
$ - $ - $ 130 $ 5 $ 31 $ 452 $ 470
- 1 - 32 22
- - - 129 5
- 499 - 499 130
- - - 924 178
130 505 31 2,036 805
607 - 16 2,688 2,093
- - - 4,807 4,965
- 976
17,018 18,513
2,879 608
- - - - - 2,449 5,182
316 333 - (496) 503 2,519 4,143
316 333 607 (496) 519 32,360 36,480
$ 316 $ 333 $ 737 $ 9 $ 550 $ 34,396 $ 37,285
- 100-
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-ALL CAPITAL PROJECTS FUNDS
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Low
Redevelopment Income Capital Pier
REVENUES: Agency Housing Improvement Rebuilding
Othertaxes S 767 S - �—
Licenses and permits - - -
From use of money and property 679 110 152 324
From other agencies 2 - 223 -
Charges for current service - - -
Other 216 32 - 24
TOTAL REVENUES 1,664 142 375 348
EXPENDITURES:
Current:
City Attorney 173 - -
Economic development 1,423 1 -
Community services - - '
Library services - - '
Public works - -
Nondepartmental - 9 -
Capital outlay 6,999 906 2,380 178
Debt service:
Principal 51 - - -
Interest 4,707 - - -
TOTAL EXPENDITURES 13,353 916 2,380 178
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (11,689) (774) (2,005) 170
OTHER FINANCING SOURCES(USES):
Proceeds from long-term debt 10,142 - - -
Operating transfers in - 968 76 -
Operating transfers out - (35) (850) (87)
TOTAL OTHER FINANCING SOURCES(USES) 10,142 933 (774) (87)
EXCESS OF REVENUES AND
OTHER FINANCING SOURCES
OVER(UNDER)EXPENDITURES
AND OTHER FINANCING USES (1,547) 159 (2,779) 83
FUND BALANCES(DEFICITS)-BEGINNING OF YEAR 22,139 6,023 5,374 1,629
Prior period adjustments - - - -
FUND BALANCES(DEFICITS)-
BEGINNING OF YEAR,AS RESTATED 22,139 6,023 5,374 1,629
FUND BALANCES(DEFICITS)-END OF YEAR $ 20,592 $ 6,182 $ 2,595 $ 1,712
- 101 -
Mello-Roos Library
Assessment Parking Holly Pier Cultural Totals
District In-Lieu Seacliffe Plaza Facilities 1999 1998
21 - - 278 299 741
14 12 16 136 21 1,464 1,494
- - 1,072 - - 1,297 23
2 - - 2 _
- - 3 - - 275 2,306
14 33 1,093 136 299 4,104 5,297
- - 76 - - 249 819
- - - 1,424 1,769
- 95 - 95 5
- 267 267 264
- 22 - 22 155
- 32 - - 41 10
855 58 - 11,376 7,113
- - - 51 -
- - - 4,707 -
- - 963 175 267 18,232 10,135
14 33 130 (39) 32 (14,128) (4,838)
- - - - - 10,142 -
124 - - 1,168 6,728
- (330) - (1,302) (597)
- - 124 (330) - 10,008 6,131
14 33 254 (369) 32 (4,120) 1,293
302 300 353 (127) 487 36,480 32,367
- - - - - - 2,820
302 300 353 (127) 487 36,480 35,187
$ 316 $ 333 $ 607 $ (496) $ 519 $ 32,360 $ 36,480
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- 103 -
ENTERPRISE FUNDS
Enterprise Funds account for operations similar to private businesses. The City', intent is to recover the
costs to the general public through user charges or where the City wished to periodically determine net
income.
The Water Utility Fund accounts for the City's water services.
The Emerald Cove Housing Fund accounts for the operations of a senior-citizens apartment complex.
The Emergency Fire Medical Fund accounts for the user-fee portion of the City's paramedic service.
The Refuse Collection Fund accounts for the City's refuse collection program.
The Hazmat Service Fund accounts for user fees charged for City's hazardous material program.
The Cultural Affairs Fund accounts for the operation of the City's Art Center.
- 104 -
CITY OF HUNTINGTON BEACH
COMB INING-BALANCE SHEET-:ALL ENTERPRISE FUNDS
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Water Emerald Cove
Utility Housing
ASSETS
CURRENT ASSETS:
Cash and investments $ 21,481 $ 1,918
Accounts receivable 725 -
Interest receivable 131 37
Unbilled receivables 3,084 -
Due from other fund 1,301 -
Inventory 892 -
TOTAL CURRENT ASSETS 27,614 1,955
RESTRICTED ASSETS:
Cash and investments with fiscal agents - 459
NONCURRENT ASSETS:
Investment in joint venture 264 -
Advances to other funds 6,528 -
TOTAL NONCURRENT ASSETS 6,792 -
PROPERTY,PLANT AND EQUIPMENT:
Land 391 1,288
Buildings 2,708 4,102
Machinery and equipment 58,466 -
Construction in progress 7,731 -
TOTAL PROPERTY,PLANT AND EQUIPMENT 69,296 5,390
LESS ACCUMULATED DEPRECIATION (34,732) (1,148)
NET PROPERTY,PLANT AND EQUIPMENT 34,564 4,242
TOTAL ASSETS $ 68,970 $ 6,656
- 105-
Emergency Refuse Hazmat Cultural Totals
Fire Medical Collection Service Affairs 1999 1998
$ 731 $ - $ 107 $ - $ 24,237 $ 20,915
923 1,415 3 - 3,066 2,471
18 1 - - 187 168
- - - - 3,084 4,057
- - - 1,301 1,143
- - - - 892 934
1,672 1,416 110 - 32,767 29,688
- - - - 459 461
- - - 264 202
- - - 6,528 6,220
- - - 6,792 6,422
- - 759 2,438 2,438
- - - 1,249 8,059 8,059
390 - 20 5 58,881 57,210
- - - - 7,731 7,571
390 - 20 2,013 77,109 75,278
(284) - (9) (105) (36,278) (34,835)
106 - 11 1,908 40,831 40,443
$ 1,778 $ 1,416 $ 121 $ 1,908 $ 80,849 $ 77,014
(Continued)
- 106-
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET-ALL ENTERPRISE FUNDS-
(CONTINUED)
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Water Emerald Cove
Utility Housing
LIABILITIES AND FUND EQUITY
LIABILITIES:
CURRENT LIABILITIES(PAYABLE FROM CURRENT ASSETS):
Accounts payable $ 1,334 $ 4
Accrued payroll 139 -
Accrued interest 13 32
Deposits 1,636 21
Due to other funds - -
Current portion of long-tern debt 38 110
TOTAL CURRENT LIABILITIES
(PAYABLE FROM CURRENT ASSETS) 3,160 167
LONG-TERM LIABILITIES(LESS CURRENT PORTION):
Leases payable 46 -
Advances from other funds - 244
Certificates of participation - 5,105
Compensated absences 278 -
Less current portion (38) (110)
TOTAL LONG-TERM LIABILITIES 286 5,239
TOTAL LIABILITIES 3,446 5,406
FUND EQUITY:
Contributed capital 30,104 1,288
Retained earnings(deficits) 35,420 (38)
TOTAL FUND EQUITY 65,524 1,250
TOTAL LIABILITIES AND FUND EQUITY $ 68,970 $ 6,656
- 107-
Emergency Refuse Hazmat Cultural Totals
Fire Medical Collection. Service Affairs 1999 1998
$ 114 $ 692 $ 1 $ 11 $ 2,156 $ 2,551
31 5 2 2 179 162
- - - - 45 191
- - - 1,657 2,810
946 - 510 1,456 1,298
- - - - 148 135
145 1,643 3 523 5,641 7,147
- - - - 46 79
- 244 243
- - - - 5,105 5,205
24 26 5 - 333 331
- - - - (148) (135)
24 26 5 - 5,580 5,723
169 1,669 8 523 11,221 12,870
311 - - 1,907 33,610 28,980
1,298 (253) 113 (522) 36,018 35,164
1,609 (253) 113 1,385 69,628 64,144
$ 1,778 $ 1,416 $ 121 $ 1,908 $ 80,849 $ 77,014
- 108-
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES;EXPENSES AND
CHANGES IN RETAINED EARNINGS-ALL ENTERPRISE FUNDS
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Water Emerald Cove
OPERATING REVENUES: Utility Housing
Sales $ 17,839 $ -
Rentals - 661
Fees for service - -
Other 1,291 3
TOTAL OPERATING REVENUES 19,130 664
OPERATING EXPENSES:
Water purchases 4,019 -
Supplies and operations 5,276 334
I Engineering 810 -
r
Production 4,278 -
Maintenance 1,224 -
Water meters 945 -
City Attorney 5 -
Water quality 245 -
In-Lieu taxes to General Fund 2,808 -
Depreciation 1,441 82
TOTAL OPERATING EXPENSES 21,051 416
I
OPERATING INCOME(LOSS) (1,921) 248
NONOPERATING REVENUES(EXPENSES):
Interest income 1,895 72
Joint venture income(expense) 48 -
Interest expense (128) (365)
TOTAL NONOPERATING REVENUES(EXPENSES) 1,815 (293)
NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (106) (45)
OPERATING TRANSFERS IN - 35
OPERATING TRANSFERS OUT - -
NET INCOME(LOSS) (106) (10)
ADD DEPRECIATION ON CONTRIBUTED CAPITAL 1,228 -
NET INCREASE(DECREASE)IN RETAINED EARNINGS 1,122 (10)
RETAINED EARNINGS(DEFICITS)-BEGINNING OF YEAR 34,298 (28)
RETAINED EARNINGS(DEFICITS)-END OF YEAR $ 35,420 $ (38)
- 109-
I
Emergency Refuse Hazmat Cultural Totals
Fire Medical Collection Service Affairs 1999 1998
$ 7 $ 17,839 $ 18,140
- _ _ - 661 639
3,596 8,552 82 81 12,311 12,598
2 - 23 1,319 3,021
3,596 8,554 82 104 32,130 34,398
- - - 4,019 4,029
3,475 8,839 92 308 18,324 17,802
- _ - 810 759
- 4,278 4,352
_ - 1,224 1,411
- - - - 945 983
- - 5 57
- - 245 250
- - 2,808 2,651
32 - 4 25 1,584 1,604
3,507 8,839 96 333 34,242 33,898
89 (285) (14) (229) (2,112) 500
43 2 2 - 2,014 1,745
- - - - 48 (311)
- - - - (493) (569)
43 2 2 - 1,569 865
132 (283) (12) (229) (543) 1,365
120 155 383
132 (283) (23) (109) (399) 1,748
- - - 25 1,253 957
132 (283) (23) (84) 854 2,705
1,166 30 136 (438) 35,164 32,459
$ 1,298 $ (253) $ 113 $ (522) $ 36,018 $ 35,164
i
CITY OF HUNTINGTON BEACH
j COMBINING STATEMENT OF CASH FLOWS-ALL ENTERPRISE FUNDS
II
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
is
Water Emerald Cove
Utility Housing
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss) $ (1,921) $ 248
Adjustments to reconcile operating income(loss)to net cash
net cash provided(used)by operating activities:
Depreciation 1,441 82
Changes in operating assets and liabilities:
(Increase)decrease in accounts receivable 553 -
(Increase)decrease in interest receivable (12) (1)
(Increase)decrease in unbilled receivables (151) -
(Increase)decrease in advances to other funds (308) -
(Increase)decrease in due from other funds (158) -
(Increase)decrease in inventory 42 -
Increase(decrease)in accounts payable (644) 6
1 Increase(decrease)in accrued payroll 20 -
Increase(decrease)in lease payable - -
Increase(decrease)in due to other funds - 1
Increase(decrease)in deposits (1,154) -
Increase(decrease)in compensated absences 23 -
TOTAL ADJUSTMENTS (348) 88
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES (2,269) 336
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
' Operating transfers in - 35
Operating transfers out - -
I t'.
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES - 35
p 1. CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
r Contributions from water customers 5,882 -
,,L; Interest paid (128) (365)
Acquisition and construction of capital assets (1,961) -
Proceeds from sale of plant,property and equipment - -
Principal paid on long-term debt (33) (100)
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES 3,760 (465)
CASH FLOWS FROM INVESTING ACTIVITIES:
Joint venture cash received(paid) -
P ) (14)
Interest on investments 1,895 74
NET CASH PROVIDED(USED)BY INVESTING ACTIVITIES 1,881 74
NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 3,372 (20)
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 18,109 2,397
CASH AND CASH EQUIVALENTS-END OF YEAR $ 21,481 $ 2,377
f} NONCASH ACTIVITIES:
Ip Joint venture activity
j{F - Ill -
, f
I f
Emergency Refuse Hazmat Cultural _ Totals
Fire Medical Collection Service Affairs
$ 89 $ (285) $ (14) $ (229) $ (2,112) $ 500
32 - 4 25 1,584 1,604
(208) 110 22 - 477 (365)
(8) - - - (21) (63)
- 52 - - (99) 648
- _ - (308) (323)
(158) 134
- - - - 42 5
43 53 (4) 5 (541) 215
1 2 (5) 18 29
- - - - (55)
66 - 93 160 (56)
- - - - (1,154) 342
(18) 1 5 (9) 2 24
(159) 283 29 109 2 2,139
(70) (2) 15 (120) (2,110) 2,639
- 120 155 383
(11) - (11) -
(11) 120 144 383
- - 5,882 5,562
(493) (569)
(1,972) (2,572)
- 204
(133) (95)
3,284 2,530
(14) (15)
43 2 2 - 2,016 1,745
43 2 2 - 2,002 1,730
(38) - 6 - 3,320 7,282
769 - 101 - 21,376 14,094
$ 731 $ - $ 107 $ - $ 24,696 $ 21,376
$ - $ - $ - $ - $ - $ (407)
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� il
INTERNAL SERVICE FUNDS
Internal Service Funds account for goods and services provided by one City department to another on a
cost-reimbursement basis.
Insurance Reserve Funds:
The Medical Insurance Fund accounts for self-insurance activities for health costs.
The Workers' Compensation Fund accounts for self-insurance activities for workers' compensation
costs.
The General Liability Fund accounts for self-insurance activities for disability costs.
The Equipment Replacement Fund accounts for the purchase, operation and replacement of vehicles and
equipment leased to City departments.
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET.-ALL INTERNAI .SERVICE FUNDS
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Insurance Reserve Funds
Workers' General
i' ASSETS Medical Compensation Liability
CURRENT ASSETS:
Cash and investments $ - $ 12 $ 2,155
Prepaid insurance 46 25 614
Other receivables 363 - -
Due from other funds - - 783
TOTAL CURRENT ASSETS 409 37 3,55T_
RESTRICTED ASSETS:
Cash and investments with fiscal agents - - -
PROPERTY,PLANT AND EQUIPMENT:
Machinery and equipment - - -
Construction in progress - -
> SUBTOTAL - - -
} Less accumulated depreciation - - -
NET PROPERTY,PLANT AND EQUIPMENT - - -
TOTAL ASSETS $ 409 $ 37 $ 3,552
r
t LIABILITIES AND FUND EQUITY
` CURRENT LIABILITIES:
a Accounts payable $ 2 $ 4 $ 776
Accrued payroll 10 5 3
r Accrued interest - - -
Due to other funds 1,032 - -
Current portion of long-term debt - - -
TOTAL CURRENT LIABILITIES 1,044
LONG-TERM LIABILITIES:
Leases payable - - -
Workers'compensation claims - 5,352 -
Health claims 286 -
General liability claims - 4,344
Compensated absences 25 17 8
Less current portion - - -
TOTAL LONG-TERM LIABILITIES ITT- 5,369 4,352
TOTAL LIABILITIES 1,355 5,378 5,131
b
FUND EQUITY:
l' Contributed capital
Retained earnings(deficits):
Unreserved (946) (5,341) (1,579)
TOTAL FUND EQUITY (946 (1,5'77
I? TOTAL LIABILITIES AND FUND EQUITY $ 409 $ 37 $ 3,552
Oil-
y
Equipment Totals
Replacement
$ 5,614 $ 7,781 $ 5,298
- 685 509
48 411 82
82 865 66
1,084 1,084 1,291
37,668 37,668 37,629
4,432 4,432 4,432
,
(26,928) (26,928) (25,784)
--f5,TT ,
$ 22,000 $ 25,998 $ 23,523
$ 453 $ 1,235 $ 359
- 18 16
12 12 17
- 1,032 176
533 533 88 %
1,587 1,587 2,136
- 5,352 5,199
- 286 286
- 4,344 6,289
- 50 44
(533) (533) (88)
2,052 13,916 14,522
4,040 4,040- 4,833
15,908 8,042 4,168
12,08r 9,001
$ 22,000 $ 25,998 $ 23,523
I
- 116-
CITY OF HUNTINGTON BEACH
COMB INING'STATEMENT OF REVENUES,EXPENSES AND `
CHANGES IN RETAINED EARNINGS-ALL INTERNAL SERVICE FUNDS
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Insurance Reserve Funds
Workers' General
Medical Compensation Liability
OPERATING REVENUES:
Fees for service $ 5,215 $ 2,698 $ 31750
Other 367 91 13
i
`F
TOTAL OPERATING REVENUES 5,582 2,789 3,763
� OPERATING EXPENSES:
Supplies and operating 707 228 527
Employee medical claims and insurance 4,099 - -
Liability claims and insurance - - 753
Workers'compensation claims and insurance - 3,079
Depreciation - -
TOTAL OPERATING EXPENSES 4,806 3,307 1,280
OPERATING INCOME(LOSS) 776 (518) 2,483
i
NONOPERATING REVENUES(EXPENSES):
Interest income - 3 168
Interest expense - -
Gain(loss)on disposal of assets - - -
TOTAL NONOPERATING REVENUES(EXPENSES) - 3 168
NET INCOME(LOSS)BEFORE OPERATING TRANSFERS 776 (515) 2,651
OPERATING TRANSFERS IN - - -
OPERATING TRANSFERS OUT - - -
a
NET INCOME(LOSS) 776 (515) 2,651
ADD DEPRECIATION ON CONTRIBUTED ASSETS - - -
INCREASE(DECREASE)IN RETAINED EARNINGS 776 (515) 2,651
E' RETAINED EARNINGS(DEFICITS)-BEGINNING OF YEAR (1,722) (4,826) (4,230)
RETAINED EARNINGS(DEFICITS)-END OF YEAR $ (946) $ (5,341) $ (1,579)
a
- 117-
Equipment Totals
Replacement 1999 1998
$ 2,560 $ 14,223 $ 14,304
- 471 1,663
2,560 14,694 15,967
838 2,300 3,015
- 4,099 3,946
753 5,185
- 3,079 2,326
2,626 2,626 3,198
3,464 12,857 17,670
(904) 1,837 (1,703)
305 476 528
(230) (230) (373)
(364) (364) (72)
(289) (118) 83
(1,193) 1,719 (1,620)
i
990 990 -
- - (25)
(203) 2,709 (1,645)
1,165 1,165 1,133
962 3,874- (512)
14,946 4,168 4,680
$ 15,908 $ 8,042 $ 4,168
118-
I
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF CASH FLOWS-ALL INTERNAL SERVICE FUNDS"
For the year ended September 30, 1999
R' With comparative totals for the year ended September 30, 1998
(In Thousands)
Insurance Reserve Funds
or ers enera
Medical Compensation Liability.
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income(loss) $ 776 $ (518) $ 2,483
Adjustments to reconcile operating income(loss)
to net cash provided(used)by operating activities:
Depreciation - - -
Changes in operating assets and liabilities:
(Increase)decrease in prepaid insurance (2) (2) (172)
(Increase)decrease in due from other funds - - 544
(Increase)decrease in accounts receivable (339) 5 (52)
Increase(decrease)in accounts payable (19) (1) 747
Increase(decrease)in due to other funds (416) - -
Increase(decrease)in claims payable - 154 (1,952)
Increase(decrease)in leases payable - - -
k
Increase(decrease)in compensated absences - 2 4
Increase(decrease)in accrued payroll - I i
Increase(decrease)in accrued interest - - -
TOTAL ADJUSTMENTS (776) 159 (880)
NET CASH PROVIDED(USED)BY.OPERATING ACTIVITIES - (359) 1,603
j CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Operating transfers in - -
z Operating transfers out - -NET CASH PROVIDED(USED)BY
t NONCAPITAL FINANCING ACTIVITIES - -
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Interest paid
Acquisition and construction of capital assets - -
Principal paid on long-term debt - -NET CASH PROVIDED(USED)BY CAPITAL
AND RELATED FINANCING ACTIVITIES - - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Joint venture cash paid - - -
Interest on investments - - 168
NET CASH PROVIDED(USED)BY INVESTING ACTIVITIES - - 168
NET INCREASE(DECREASE)
CASH AND CASH EQUIVALENTS - (359) 1,771
CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR - 371 384
CASH AND CASH EQUIVALENTS-END OF YEAR $ - $ 12 $ 2,155
NONCASH ACTIVITIES:
Equipment contributions
Joint venture activity - - -
j Acquisition of assets through capital leases - -
I TOTAL NONCASH ACTIVITIES —$ - $ ! $r____�
- 119-
Equipment Totals
Replacement
$ (904) $ 1,837 $ (1,703)
2,626 2,626 3,198
- (176) 1,291
(16) 528 1,736
11 (375) 3
149 876 (118)
- (416) (26)
(1,798) 13
- 1,279
6 6
2 6
(5) (5) 9
2,765 1,268 7,397
1,861 3,105 5,694
990 990 -
- - (25)
990 990 (25)
(230) (230) (373)
(1,438) (1,438) (4,179)
(549) (549) -
(2,217) (2,217) (4,552)
- - (72)
230 398 528
230 398 456
864 2,276 1,573
5,834 6,589 5,016
$ 6,698 $ 8,865 _ $ 6,589
$ 372 $ 372 $ 415
(364) (364) (823)
- - 1,279
--8
- 120-
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TRUST AND AGENCY FUNDS
Trust and Agency Funds account for assets held by the City as an agent for individual., private
organizations or other governments.
Agency Funds
The General Deposit Fund accounts for the deposit of general moneys held by the City for private
individuals and businesses.
The Mello-Roos Assessment District Fund accounts for the debt service requirements of the Mello-Roos
Assessment District bonds.
The Retiree Medical Insurance Fund accounts for the City's medical retirement program.
The Business Improvement District accounts for the activities of the Huntington Beach Auto Business
Improvement District.
The Central Net Fund accounts for the activity of the Central Net Operations Authority.
Trust Funds
The Retirement Supplement Trust Fund accounts for the supplemental retirement plan provided to retirees.
The Employee Deferred Compensation Trust Fund accounts for moneys held for employees under the
City's section 457 deferred compensation plan.
i
- 122 -
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
ALL AGENCY AND TRUST FUNDS
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
i
Agency Funds
Mello-Roos
General Assessment
Deposit District
ASSETS
Cash and investments $ 462 $ 26
Restricted cash and investments with fiscal agent - 850
Interest receivable - -
Due from other funds - -
Notes receivable,net of allowance for doubtful accounts - -
Other assets - 68
TOTAL ASSETS $ 462 $ 944
f LIABILITIES AND FUND BALANCES ,
i
LIABILITIES:
Accounts payable $ - $ -
Deposits payable 462 944
Notes payable - -
{ .Funds held for others - -
i
TOTAL LIABILITIES 462 944
FUND BALANCES:
Reserved for pension benefits -
Reserved for employee benefits -
TOTAL FUND BALANCES - -
TOTAL LIABILITIES AND FUND BALANCES $ 462 $ 944
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Agency Funds(Continued) Trust Funds Totals
Retiree Business Employee
Medical Improvement Central Retirement Deferred
Insurance District Net Supplement Compensation 1999 1998
$ 3,893 $ - $ 774 $ 4,066 $ 32 $ 9,253 $ 8,308
- - 850 809
1 1 13
68 - - 70 - 138 113
- 339 339 338
61 10 - - 139 119
$ 3,961 $ 61 $ 784 $ 4,136 $ 372 $ 10,720 $ 9,700 .
$ 8 $ - $ 8 $ -
61 784 - - 2,251 2,132
11 11 21
3,961 - - - 3,961 3,886
3,961 61 784 8 11 6,231 6,039
4,128 - 4,128 3,283
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- 361 361 378
4,128 361 4,489 3,661
$ 3,961 $ 61 $ 784 $ 4,136 $ 372 $ 10,720 $ 9,700
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K CITY OF HUNTINGTON BEACH
1
COMBINING STATEMENT OF CHANGES IN'ASSETS'AND LIABILITIES
f
ALL AGENCY FUNDS
For the year ended September 30, 1999
.N
Balance Balance
K September 1, September 30,
1998 Additions Deletions 1999
GENERAL DEPOSIT FUND
ASSETS:
Cash and investments $ 472 $ - $ 10 $ 462
x LIABILITIES:
Deposits payable $ 472 $ - $ 10 $ 462
MELLO-ROOS
ASSESSMENT DISTRICT FUND
r
t ASSETS:
.0 Cash and investments $ 27 $ 263 $ 264 $ 26
Restricted cash and investments with fiscal agent 809 255 214 850
Other assets 71 - 3 68
TOTAL ASSETS $ 907 $ 518 $ 48.1 $ 944
LIABILITIES:
Deposits payable $ 907 $ 518. $ 481 $ 944
RETIREE MEDICAL INSURANCE FUND
ASSETS:
Cash and investments $ 3,816 $ 590 $ 513 $ 3,893
Due from other funds 70 61 63 68
TOTAL ASSETS $ 3,886 $ 651 $ 576 $ 3,961
j LIABILITIES:
( Funds held for others $ 3,886 $ 651 $ 576 $ 3,961
(Continued)
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CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
. ALL AGENCY FUNDS(CONTINUED)
For the year ended September 30, 1999
Balance Balance
September 1, September 30,
1998 Additions Deletions 1999
BUSINESS IMPROVEMENT DISTRICT FUND
ASSETS:
Cash and investments $ 8 $ 184 $ 192 $ -
Other assets 9 52 - 61
TOTAL ASSETS $ 17 $ 236 $ 192 $ 61
LIABILITIES:
Deposits payable $ 17 $ 236 $ 192 $ 61
CENTRAL NET FUND
ASSETS:
Cash and investments $ 726 $ 360 $ 312 $ 774
Other assets 10 - 10
TOTAL ASSETS $ 736 $ 360 $ 312 $ 784
LIABILITIES:
Deposits payable $ 736 $ 360, $ 312 $ 784
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TOTAL-ALL AGENCY FUNDS
y � ASSETS:
Cash and investments $ 5,049 $ 1,397 $ 1,291 $ 5,155
Restricted cash and investments with fiscal agent 809 255 214 850
Due from other funds 70 61 63 68
Other assets 90 52 3 139
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TOTAL ASSETS $ 6,018 $ 1,765 $ 1,571 $ 6,212
LIABILITIES:
Deposits payable $ 2,132 $ 1,114 $ 995 $ 2,251
Funds held for others 3,886 651 576 3,961
TOTAL LIABILITIES- $ 6,018 $ 1,765 $ 1,571 $ 6,212
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�I{II
VI
CITY OF HUNTINGTON BEACH
STATEMENT OF PLAN NET ASSETS,
' RETIREMENT SUPPLEMENT TRUST FUND
September 30, 1999
With comparative totals for September 30, 1998
(In Thousands)
Totals
1999 1998
ASSETS
' Cash and investments $ 4,066 $ 3,228
Due from other funds 70 50
Interest receivable _ 5
TOTAL ASSETS $ 4,136 $ 3,283
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ 8 $ _
FUND BALANCES:
Reserved for pension benefits 4,128 3,283
TOTAL LIABILITIES AND FUND BALANCES $ 4,136 $ 3,283
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CITY OF HUNTINGTON BEACH
STATEMENT OF CHANGES IN PLAN NET ASSETS
RETIREMENT SUPPLEMENT TRUST FUND
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Totals
1999 1998
ADDITIONS:
Employer contributions $ 1,559 $ 1,514
Interest income 133 183
TOTAL ADDITIONS 1,692 1,697
DEDUCTIONS:
Benefits 847 729
Administration - 19
TOTAL DEDUCTIONS 847 748
NET INCREASE IN PLAN ASSETS 845 949
FUND BALANCE-BEGINNING OF YEAR 3,283 2,334
FUND BALANCE-END OF YEAR $ 4,128 $ 3,283
- 128-
CITY OF HLNTINGTON BEACH
BALANCE'SHEET
EMPLOYEE DEFERRED COMPENSATION TRUST FWD
September 30, 1999
With comparative totals for September 30, 1998
(in Thousands)
Totals
1999 1998
ASSETS
Cash and investments $ 32 $ 31
Notes receivable and other assets 339 367
Interest receivable i I
TOTAL ASSETS $ 372 $ 399
LIABILITIES AND FUND BALANCES
LIABILITIES:
Notes payable $ 11 $ 21
FUND BALANCES:-
Reserved for employee benefits 361 378
TOTAL LIABILITIES AND FUND BALANCES $ 372 $ 399
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1
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
EMPLOYEE DEFERRED COMPENSATION TRUST FUND
For the year ended September 30, 1999
With comparative totals for the year ended September 30, 1998
(In Thousands)
Totals
1999 1998
REVENUES:
Interest income $ 14 $ 61
EXPENDITURES:
Transfers to participants 31 106
Loss on notes receivable - 239
TOTAL EXPENDITURES 31 345
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES (17) (284)
FUND BALANCE-BEGINNING OF YEAR 378 662
FUND BALANCE-END OF YEAR $ 361 $ 378
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I
GENERAL FIXED ASSETS ACCOUNT GROUP
e
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, 1999
(In Thousands)
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I GENERAL FIXED ASSETS:
Land $ 74,414
Buildings 68,283
Improvements other than buildings 2,162
Construction in progress 2,083
Joint Ventures 1,135
TOTAL GENERAL FIXED ASSETS $ 148,077
INVESTMENT IN GENERAL FIXED ASSETS:
General Fund $ 12,610
Special Revenue Funds 30,608
Capital Projects Funds 82,112
Donations 21,612
Joint ventures 1,135
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 148,077
- 133-
I CITY OF HUNTINGTON BEACH
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the year ended September 30, 1999
(In Thousands)
Balance Balance
October 1, September 30,
1998 Additions Retirements 1999
Fire $ 3,185 $ - $ - $ 3,185
Police 701 141 - 842
Community services 91,576 3,658 2,991 92,243
Public works 6,190 803 - 6,993
Library services 13,286 - - 13,286
Nondepartmental 31,565 206 243 31,528
$ 146,503 $ 4,808 $ 3,234 $ 148,077
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CITY OF HUNTINGTON BEACH
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SCHEDULE OF GENERAL"FIXED ASSETS
BY FUNCTION AND ACTIVITY
As of September 30, 1999
(In Thousands)
Improvements Construction
Other than in Joint
Function Land Buildings Buildings Progress Venture Total
Fire $ - $ 3,185 $ - $ - $ - $ 3,185
Police - 784 58 - - 842
Community services 53,349 36,790 2,104 - - 92,243
Public works - 5,118 - 1,875 - 6,993
Library services - 13,213 - 73 - 13,286
Nondepartmental 21,065 9,193 - 135 1,135 31,528
Total $ 74,414 $ 68,283 $ 2,162 $ 2,083 $ 1,135 $ 148,077
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{
GENERAL LONG-TERM DEBT ACCOUNT GROUP
{
The General Long-Term Debt Account Group accounts for long-term debt not recorded in proprietary or
trust funds.
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CITY OF HUNTINGTON BEACH
SCHEDULE OF CHANGES IN GENERAL LONG'-TERM DEBT. .
September 30, 1999
(In Thousands)
Balance Balance
October 1, September 30,
1998 Additions Retirements 1999
GENERAL LONG-TERM DEBT PAYABLE:
Civic Improvement Corporation Refunding
Certificates of Participation(Civic Center)- 1993 $ 18,670 $ - $ (640) $ 18,030
Civic Improvement Corporation
Refunding Certificates of Participation
(Police Administration Building)- 1993 14,310 - (385) 13,925
Compensated absences 5,323 999 (859) 5,463
Advances from other funds 67,264 4,707 (12,074) 59,897
1992 Public Financing Authority Revenue Bonds 30,860 - (9,585) 21,275
Notes payable 502 - (51) 451
1999 Redevelopment Agency Tax Allocation
Refunding Bonds - 10,835 (495) 10,340
Mayer Disposition and Development Agreement - 10,142 - 10,142
Reservoir Hill Assessment Bonds 1,090 - (60) 1,030
1997 Public Financing Authority
Leasehold Revenue Bonds 7,840 - (400) 7,440
Pension benefit obligation 6,271 2,532 (1,559) 7,244
Energy financing loan 308 - - 308
TOTAL GENERAL
LONG-TERM DEBT PAYABLE $ 1.52,438 $ 29,215 $ (26,108) $ 155,545
- 137-
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STATISTICAL SECTION
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CITY OF HUNTINGTON BEACH
SCHEDULE OF EXPENDITURES'BY FUNCTION:
GOVERNMENTALAND EXPENDABLE TRUST FUNDS
Last Ten Fiscal Years
(In Thousands)
Fiscal City City City City City Administrative Community
Year Council administrator Treasurer Attorney Clerk Services Development Fire Police
i 1989-90 s 215 $ 853 $ 439 S 1,308 S 330 $ 3,835 S 5,404 S 14,148 $ 26,369
}
i
1990-91 197 1,564 700 1.340 457 4.187 5,306 14,169 28,148
1991-92 297 1,569 127 1.563 402 4,042 6.628 13,173 30,417
1992-93 213 1,480 709 1,807 449 4,109 6,097 16,505 32,355
•1993-94 282 2.691 897 2.168 517 5,140 10,406 19,502 40,535
i
1994-95 224 1,672 709 1,866 485 4,200 3,252 15.304 32.795
1995-96 224 2.140 743 1.466 488 4,191 3,252 14,747 32,650
19%-97 233 1,856 781 1,738 470 4.208 3,694 15,906 33,413
1997-98 207 1,092 805 2,340 434 3,056 3,919 16,369 34.267
1998-99 275 1,569 820 1,969 474 2,876 4,067 15.639 34,343
Fiscal Economic Community Library Public Non- Capital Debt
Year Development Services Services Works departmental Outlay Service Totals
1989-90 S S 8,307 S S 18,428 S 7,955 S 20,622 S 10,626 S 118,838
1990-91 9,127 20,275 7,052 24,076 11,895 128,493
1991-92 9,420 15,899 11,255 39,069 48,643 183,094
1992-93 7,228 2,775 16,633 21,488 17,328 9,397 138.572
1993-94 9,892 3,513 20.802 10,787 22,228 18,699 169,059
1994-95 2,637 7,064 2,921 16,714 9,953 12,958 11.933 124.687
1995-96 3,010 7,535 2,951 16,297 9.399 9,823 14,227 123,133
19%-97 2.142 7.301 3,034 17,159 9,867 13,833 12,529 128,064
1997-98 3,216 7,703 3,212 18,676 14,698 15,978 11,941 137,912
1998-99 3.598 8,439 3.510 18,287 12,929 20,739 28,765 158,299
•-Fiscal year 1993-94 is a fifteen month fiscal year
Source:Administrative Services Department-City of Huntington Beach
- 138-
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j CITY OF HUNTINGTON BEACH
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SCHEDULE OF REVENUES BY SOURCE
j GOVERNMENTAL AND EXPENDABLE TRUST FUNDS
Last Ten Fiscal Years
(In Thousands)
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iUse of Charges
Licenses Fines Money From for
Fiscal Property Other and and and Other Current
1
1
Year Tax Taxes Permits Forfeitures Property Agencies Service Other Totals
i
1989-90 $ 30,460 S 32,679 S 3,944 S 2,256 S 14,140 S 15,211 S 7,267 S 1.0l9 S 106,976
1990-91 33,697 32,092 3,629 1,904 11,954 27,243 8,341 2,012 120.772
1991-92 35,376 35,069 4,236 1,324 19,451 21,850 4,699 3,192 125,197
1992-93 33,163 36,332 4,846 1,354 11,382 19,334 6,453 2,493 115,357
•1993-94 32,545 46,194 6,579 1,894 17,303 25,894 9,528 6,221 146,158
1994-95 25,265 38,259 5,978 2,134 11,704 19,941 8,706 1,071 113,058
1995-% 29,320 39,879 6,567 2,134 14,291 18,171 13,129 3,579 127,070
1996-97 29,341 42,203 8,121 2,707 12,971 19,810 10,448 743 126.344
1997-98 32,477 44,895 8,948 2,649 12,614 21,539 10,147 3,798 136,%7
1998-99 34,345 48,757 10,527 2,744 10,913 24,753 9,557 4,514 146,110
•-Fiscal year 1993-94 is a fifteen month fiscal year.
Source:Administrative Services Department-City of Huntington Beach
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6 -
CITY OF HUNTINGTON BEACH
PROPERTY'TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(In Thousands)
i
SECURED TAXES UNSECURED TAXES
Fiscal Total Total Delinquency Delinquency Fiscal Total Total Delinquency Delinquency
Year Levy Collections Amount Percentage Year Levy Collections Amount Percentage
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1989-90 S 17,283 S 16,654 S 500 3.00% 1989-90 S 1,524 S 1,421 S 71 5.00%
1990-91 18,764 17,827 747 4.19% 1990-91 1,509 1,377 62 4.50%
1991-92 20,171 18,948 899 4.74% 1991-92 1,646 1,525 63 4.13%
1992-93 19,060 17,847 853 4.78% 1992-93 1,542 1,205 30 2.49%
•1993-94 16,612 15,632 572 3.66% '1993-94 1,205 1,106 56 5.06%
1994-95 16,781 16,300 481 2.95% 1994-95 1,231 1,299 69 5.31%
1995-96 16,272 16,100 647 4.02% 1995-96 1,165 1,138 27 2.37%
1996-97 16,722 16,401 320 1.95% 1996-97 1,102 1,085 17 1.57%
1997-98 17,630 17,176 272 1.58% 1997-98 1,247 1,077 40 3.71%
1998-99 18,341 17,868 262 1.47% 1998-99 1,243 1,146 35 3.05%
RESERVOIR HILL MELLO-ROOS
Fiscal Total Total Delinquency Delinquency Fiscal Total Total Delinquency Delinquency
Year Levy Collections Amount Percentage Year Levy Collections Amount Percentage
1989-90 S 214 S 211 S 3 1.42% 1989-90 S S - S 0.00%
1990-91 168 163 4 2.45% 1990-91 - - 0.000/6
1991-92 170 167 3 1.80% 1991-92 264 236 27 11.44%
1992-93 191 187 3 1.60% 1992-93 264 245 19 T76%
•1993-94 180 175 4 2.29% '1993-94 264 181 83 45.86%
1994-95 187 183 4 2.19% 1994-95 264 258 6 2.33%
1995-96 186 176 9 5.11% 1995-96 264 239 25 10.46%
1996-97 182 179 3 1.68% 1996-97 264 251 13 5.18%
1997-98 173 184 9 4.89% 1997-98 264 255 9 3.53%
1998-99 194 184 9 4.89% 1998-99 264 255 8 3.14%
•-Fiscal Year 1993-94 is a fifteen month fiscal year.
NOTE: Delinquency amount does not always equal levy amount minus collections amount since there are always amounts
collected from prior years.
Source:County of Orange Auditor Controller's Office
- 140-
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CITY OF HUNTINGTON BEACH
ASSESSED AND ACTUAL VALUE OF ALL TAXABLE PROPERTY
i Last Ten Fiscal Years
I
(In Thousands)
1
j Total Estimated Percent
Fiscal Common Public Total Assessed Full Market Increase
Year Property Utility Secured Unsecured Valuation Valuation (Decrease)
1989-90 $9,030,107 $ 3,298 $9,033,405 $ 717,652 $9,751,057 $9,751,057 13.65%
I1 1990-91 9,979,107 3,324 9,982,431 536,847 10,519,278 10,519,278 7.88%
1
I 1991 -92 10,639,970 10,011 10,649,981 678,150 11,328,131 11,328,131 7.69%
1992-93 11,125,356 2,311 11,127,667 758,178 11,885,845 11,885,845 4.92%
1993-94 11,313,256 1,964 11,315,220 560,665 11,875,885 11,875,885 -0.08%
1994-95 11,712,153 2,151 11,714,304 599,842 12,314,146 12,314,146 3.69%
1995-96 11,817,571 2,218 11,819,789 538,559 12,358,348 12,358,348 0.36%
1996-97 11,761,075 2,129 11,763,204 542,084 12,305,288 12,305,288 -0.43%
1997-98 12,338,032 2,297 12,340,329 624,469 12,964,798 12,964,798 5.36%
1998-99 12,968,754 2,257 12,971,011 566,077 13,537,088 13,537,088 4.41%
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Source:Administrative Services Department-City of Huntington Beach
- 141 -
CITY OF HUNTINGTON BEACH
PROPERTY TAX RATES-ALL DIRECT AND OVERLAPPING GOVERNMENTS
TAX RATE 04-001 LARGEST AREA IN CITY
(Rates are per$100 of assessed value)
Last Ten Fiscal Years
Metro
Fiscal Basic Orange School Water
Year Levy .City County Districts District Others Totals
1989-90 1.00000 0.05419 0.00022 0.01004 0.01210 0.00029 1.07684
1990-91 1.00000 0.05406 0.00110 0.00841 0.00970 0.00015 1.07342
i
1991 -92 1.00000 0.05339 0.00098 0.00482 0.00890 0.00012 1.06821
1992-93 1.00000 0.05325 0.00087 0.00201 0.00890 0.00013 1.06516
1993-94 1.00000 0.05320 0.00081 0.00227 0.00890 0.00019 1.06537
1994-95 1.00000 0.04930 0.00078 0.00046 0.00890 0.00019 1.05963
1995-96 1.00000 0.04930 0.00050 0.00033 0.00890 0.00018 1.05921
1996-97 1.00000 0.04930 0.00012 - 0.00890 - 1.05832
1997-98 1.00000 0.04930 0.00010 - 0.00890 - 1.05830
1998-99 1.00000 0.04930 0.00020 - 0.00890 - 1.05840
s
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Source:County of Orange
- 142-
CITY OF HUNTINGTON BEACH
GENERAL OBLIGATION BONDED DEBT RATIOS
Last Ten Fiscal Years
Percent of
General Assessed Percent of Bonded Total General Debt Service
Bonded Market Debtto Debt Debt Fund to Total
Fiscal Debt Value Assessed Per Principal Interest Service Expenditures General Fund
I
I Year (OOOs) (OOOs) Value Population Capita (OOOs) (OOOs) (000s) (NOS) Expenditures
i
1989-90 S 1.975 S 9,751 057 0.020% 188.701 S 10 S 305 S 139 S 444 S 93.616 0.53%
A
1990-9l 1,625 10,519,278 0.015% 181,155 9 350 118 468 88,079 0.53%
1991-92 1,255 11,328.131 0.011% 192,353 7 370 98 468 91,457 0.51%
1
1992-93 860 11,885,945 0.007% 186,867 5 395 75 470 91,650 0.51%
1993-94 445 11.975,885 0.004% 189,159 2 415 52 467 115,757 0.40%
1994-95 - 12.314.146 0.000% 186,587 - 445 13 458 92,467 0.501/6
1995-96 12,358.348 0.0001% 187,190 - - 92,211 0.00%
19%-97 12,305,288 0.000% 188,518 - %.165 0.00%
1997-98 12.964,799 0.000% 1,924.300 - I03,875 0.00
1S 1998-99 13,537,083 0.000% 196,660 - 103,050 0.00%
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Source:Administrative Services Department-City of Huntington Beach
- 143-
I
CITY OF HUNTINGTON BEACH
SCHEDULE OF CONSTRUCTION ACTIVITY AND
BANK AND SAVINGS AND LOAN DEPOSITS
Last Ten Fiscal Years
Estimated Bank
Number Value of Savings
of New and Loan
Fiscal Builing Percentage Constriction Percentage Deposits Percentage
Year Permits Change (000s) Change (000s) Change
1989-90 4,318 N/A $ 102,907 N/A S 2,598,415 N/A
1990-91 4,650 7.70% 76,175 -25.98% 2,803,740 7.90%
1991 -92 5,041 8.40% 81,250 6.66% 2,458,259 -12.30%
1992-93 10,400 106.30% 100,400 23.57% 2,121,253 -13.70%
1993-94 6,844 -34.20% 107,420 6.99% 2,141,528 1.00%
1994-95 4,471 -34.70% 84,388 -21.44% 2,183,210 1.90%
1995-96 7,594 69.90% 110,375 30.79% 2,185,412 0.10%
1996-97 5,413 -28.70% 205,970 86.61% 2,341,933 7.20%
1997-98 6,368 17.60% 206,035 0.03% 2,259,604 -3.50%
1998-99 6,735 5.78% 308,319 49.64% 2,259,604 0.00%
Sources:Community Development Department-City of Huntington Beach.
Findley Reports on California Institutions-Information is the most recent available
- 144-
CITY OF HINTINGTON BEACH
COMPUTATION OF LEGAL DET MARGIN
September 30, 1999
(In Thousands)
ASSESSED VALUATION S 13,537,088
DEBT LIMIT:
12%of Assessed Valuation S 1,624,451
Debt applicable to limitation
LEGAL DEBT MARGIN S 1,624,451
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Source:Administrative Services Department-City of Huntington Beach
- 145-
CITY OF HUNTINGTON BEACH
STATEMENT OF'DIRECT AND OVERLAPPING BONDED DEBT
September 30, 1999
1998-99 Assess Valuation$13,102,482,975(After deducting$437,535,836 incremental redevelopment valuation)
Percent Debt at
Applicable September 30, 1999
OVERLAPPING TAX AND ASSESSMENT DEBT:
Orange County Teeter Plan Obligations 7.53% $ 9,818,686
Metropolitan Water District 1.54% 8,872,837
Orange County Sanitation District No. 11 1.43% 188,594
City of Huntington Beach Community Facilities District No. 1990-1 100.00% 2,145,000
City of Huntington Beach 1915 Act Bonds 100.00% 1,030,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 22,055,117
DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Orange County General Fund Obligations 7.53% $ 80,435,169
Orange County Pension Obligations 7.53% 22,720,164
Orange County Transit Authority 7.53% 926,305
Municipal Water District of Orange County Water Facilities Corporation 11.37% 7,309,624
Orange County Sanitation District No.3,COPs 12.38% 13,950,598
Orange County Sanitation District No. 11,COPs 99.94% 22,897,554
Orange County Water District COPS 12.27% 22,543,664
Coast Community College COPS 30.71% 5,296,785
Huntington Beach Union High School District COPS 72.43% 387,517
Los Alamitos Unifed School District COPS 1.43% 65,944
Fountain Valley School District COPS 97.51% 4,724,263
City of Huntington Beach General Fund Obligations 100.00% 46,733,006
TOTAL DIRECT AND OVERLAPPING.GENERAL FUND OBLIGATION DEBT 227,990,593
Less: Orange County Transit Authority(80%self supporting) (741,044)
Orange County Water District COPS(100%self supporting) (22,543,664)
MWD Orange County Water Facilities Corporation(100%self supporting) (7,309,624)
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT _ $ 197,396,261
GROSS COMBINED DEBT* $ 250,045,710
NET COMBINED TOTAL DEBT $ 219,451,378
RATIOS TO ASSESSED VALUATION:
Total Overlapping Tax and Assessment Debt................................................ 0.16%
Combined Direct Debt($46,733,006).................... .................. 0.36%
Gross Combined Total Debt..................................................................... 1.91%
Net Combined Total Debt........................................................................ 1.67%
STATE SCHOOL BUILDING AID REPAYABLE AS OF SEPTEMBER 30, 1999 $9,096,701
* Excludes tax and revenue anticpation notes,revenue,mortgage revenue and tax allocation bonds,and nonbonded
capital lease obligations.
Source: California Municipal Statistics
- 146-
CITY OF HUNTINGTON BEACH
DEMOGRAPHIC STATISTICS
September 30, 1999
City
Population
Percent Orange as a Percent
Increase Square County of County
Year Population (Decrease) Miles Population Population
1910 815 N/A 3.57 34,436 2.37%
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 11,492 122.8% 23.47 703,995 1.63%
1970 116,400 912.9% 26.73 1,420,386 8.19%
1980 172,200 47.9% 27.20 1,931,570 8.92%
1990 188,701 9.6% 27.20 2,362,211 7.99%
1991 191,630 1.6% 27.20 2,453,277 7.81%
1992 182,783 -4.6% 27.20 2,512,198 7.28%
1993 184,962 1.2% 27.20 2,557,346 7.23%
1994 186,866 1.0% 27.20 2,596,511 7.20%
1995 186,587 -0.1% 27.20 2,627,949 7.10%
1996 187,180 0.3% 27.20 2,624,335 7.13%
1997 188,518 0.7% 27.20 2,659,316 7.09%
1998 192,430 2.1% 27.20 2,722,291 7.07%
1999 196,660 2.2% 27.20 2,775,619 7.09%
Source:Administrative Services Department-City of Huntington Beach
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CITY OF HUNTINGTON BEACH
TOP TEN PROPERTY TAXPAYERS
September 30, 1999
Assessed Percent Estimated . Percent
Valuation of Tax of
Taxpayer (000s) Total (000s)** Total
McDonnel Douglas Corporation $ 253,189 1.87% $ 505 1.47%
Waterfront Construction 35,250 0.26% 318 0.93%
Macerich Huntington,Ltd. 43,238 0.32% 287 0.84%
Huntington Breakers Apartments,Ltd. 26,800 0.20% 242 0.70%
Cat Resources LLC 112,153 0.83% 230 0.67%
Ox Pierside Corporation 21,442 0.16% 215 0.63%
Huntington Breakers Apartments,Ltd. 18,135 0.13% 164 0.48%
LIU Corporation 78,806 0.58% 163 0.47%
Goldenwest Refining Company 22,125 0.16% 162 0.47%
Bentall US Partners 21,877 0.16% 145 0.42%
TOTAL TOP TEN 633,015 4.68% 2,431 7.08%
All Other Properties 12,904,073 95.32% 31,914 92.92%
GRAND TOTAL $ 13,537,088 100.00% $ 34,345 100.00%
+* The estimated total tax includes only the portion of the total tax paid to the City's reporting entity. Properties in
different tax areas or in a redevelopment agency project area pay a different percentage of tax to the City's
reporting entity.
Source:HdL Coren&Cone
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CITY OF HUNTINGTON BEACH
MISCELLANEOUS STATISTICAL INFORMATION
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September 30, 1999
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YEAR OF INCORPORATION 1909
Charter City-City Council
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FORM OF GOVERNMENT City Administrator
AREA 27.2 Square Miles
POPULATION 196,660
MILES OF STREETS AND ALLEYS 539
NUMBER OF CITY TREES 54,563
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FIRE PROTECTION:
Number of stations 7
Number of firefighters 139
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POLICE PROTECTION:
Number of stations 4
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} Number of sworn police officers 223
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MUNICIPAL WATER DEPARTMENT:
Number of Customers 49,000
Average daily consumption total 32.0 million gallons
Average daily consumption per person 163
Miles of water mains 520
PUBLIC WORKS:
Sanitary sewers 576 miles
Storm sewers 136 miles
RECREATION AND CULTURE:
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Number of parks 57
' Park acreage developed 529
Miles of beach 3.4
i Annual beach visitors 7,000,000
Number of libraries 4
C Volumes in libraries 370,945
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NUMBER OF CITY EMPLOYEES:
Full-time 1,039
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Source:Administrative Services Department-City of Huntington Beach
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