HomeMy WebLinkAboutCOOPERS & LYBRAND - LYBRAND, ROSS BROTHERS AND MONTGOMERY - 1972-08-21A G R E E M E N T
THIS MIXEMENT, made and entered into thiso?�"
day of June, 197 , by and between the CITY OF HUNTINGTON BEACH,
a municipal corporation, hereinafter referred to as CITY, and
COOPERS & LYBRAND, 610 Newport Center Drive, Newport Beach,
California 92660, Certified Public Accountants, hereinafter _re-
ferred to as AUDITORS,
W I T N E S S E ^1 H:
In consideration of the agreements, covenants and
conditions hereinaf�oer contained and to be kept and performed by
the respective parties, hezeto, it is mutually agreed as follows:
1. AUDITORS shall make an audit and examination of
the books, accounts, records, and financial statements of CITY,
the Huntington Beach Public Facilities Corporation, and the
Parking Authority Lo:r the fiscal year July 1, 1974 through
June 30, 1975. Such audit anC examination shallbeconducted
by AUDITORS in accordance with generally accepted auditing
standards applicable in the circumstances and shall include such
tests of the accounting records aad such other auditing proce-
dures as AUDITORS consider necessary.
2. It is understood that, owing to the test character
of audits and examinations, reliance must be placed on the ade-
quacy of the systems of internal check and control as the prin-
cipal safeguard against irregularities which such audits might
not disclose. However, during the course of the audit and exam-
ination, the systems of internal, check and control will be re
viewed and weaknesses wirl be called to the attention of appro-
t r3ate CITY personnel,
l:
VISA; ahb
3. Upon completion of their work for the fiscal
year, but unless extended by mutual agreement or otherwise
altered by requirement of lawy not later than September 30,
1975, AUDITORS shall file with CITY fifty (50) copies of the
CITY' S financial statements containing AUDITORS' opinion on
the statementR,
4. AUDITORS shall render periodic reports on the
progress of their audit and examination, whenever required by
CITY or whenever deemed necessaryi prollided, however, that
written progress reports shall not be requested by CITY more
often than once a month during the progress of the work.
5. The total compensation for the services to be
provided hereunder shall not exceed Eighteen Thousand Six
Hundred Fifty and no/200ths Dollars ($18,650.00) without
prior written approve. if CITY. AUDITORS shall furnish to
CITY at the end of each month a certified,, itemized statement
of services rendered, containing manhours charged to each
specific proiect and the hourly rate therefor, and payment
thereon shall be made to AUDITORS as soon as practicable there-
after.
6. In the event that CITY shall request AUDITOFe
to perform wort or render services in addition to those which_
are usual and customavy in making Fn audit and examination of
the books and accounts of CITY, AUDITORS shall, before ren-
dering such services, advise CITY that such services are not
covered by this contract; any suc., additional services re-
i
quested after such advice shall be paid for by CITY at
{Pest of pag(, nct used)
2,
BMW
t M
AUDITORS' n.ornal hourly rates.
IN WITNEISS-WHERI�OF the part -',es hereto have set their
hands and seals the day, month and year appearing below,
DATE: Jill V s 9 1975.
;COOPELYBRAND
By C
DATE: 3 1975.
----
CITY OF HUNTINGTOi � BEACH
I
a. municipal corporation
Zi
Mayor
ATTEST: APPROVED AS TO FORM:
DON P. BONFA, City Attorney
u �� ���V ate_ �'�'f/�✓f�V �= � ; �
By - �J
City Clerk Acting City Attcrne
APPROVED AS TO CONTENT:
City Administrator
i
3.
AGREEMENT
THIS AGREEMENT, made and entered into this l7th day of June, 1974, by and
between the CITY OF HUNTINGTON BEACH, a municipal corporation, hereinafter referred
to as "Citvi", and COOPERS & LYBRAND, 610 Newport Center Drive, Newport Beach, Califor-
nia 92660, Certified Public Accountants, hereinafter referred to as "Auditors",
WITNESSETH:
In consideration of the'ab-eements, covenants and conditions hereinafter
contained and to be kept and performed by the respective parties hereto, it is
mutually agreed as follows;
1, The Auditors shall make an audit and examination of the books, accounts,
records, and financial statements of the City, the Huntington Beach
Public Facilities Corporation, and the Parking Authority for the fiscal
year July 1, 1973 through June 30, 1974. Such audit atird examination "
shall be conducted by the Auditors in accordance with generally accepted
auditing standards applicable in the circumstances and shall include such
tests of the accounting records and such other auditing procedures as the
Auditors consider necessary.
2. If is understood that, owing to the test character of audits and examina-
tions, reliance must be placed on the adequacy of the systems of internal
cEzck --nd control as the principal safeguard ;against irregularities which
such audits might not disclose. however, during the course of the audit
and examination, the systems of internal check and control will be re-
viewed and weaknesses will be called to the attention of appropriate
City personnel.
1
3.
Upon completion of their work for the fiscal year, but unless, extended
by mutual agreement or otherwise altered by requirement of law not
later than September 30, 1974, the Auditors shall file with the City
50 c4^1es of the, City's financial statements containing the Auditors'
opinion on the statements.
4.
The Auditors shall render periodic reports on the progress of their audit
and examination, whenever required by the City or whenever deemed
necessary; provided, however, that written progress reports shall not
be requested by the City more often than once a month during the
progress of the work.
5.
Compensation to the Auditors shall be payable on or about the first
of each month for services rendered during the preceding month. How-
ever, the total compensation fir the services herein provided shill
not exceed $18,000.00 Without further approval in writing from the
City.
6.
in the event that the City shall request the Auditors to perform work
or render services in addition to those which are usual and customary
in makinganaudit and examination of the books and accou: __ of the
City, the Auditors shall before rendering such services advise the 'City
that such services are not covered by this contract; any such additional
services requested after such advice shall be paid for by the City
at the Auditors' normal hourly rates,
IN
WITNESS WHEREOF, tha parties hereto have set 'their hands on the day,
month, and
year first abo.'e written.
2.
CITY 03FAK IS
'AGREEMENT COPY
THIS AGREEMENT, made and entered into this 21st
day of August 1972, by and between the CITY OF HUNTINGTON
BEACH; a municipal corporation, hereinafter referred to as
"City", and LYBRAND, ROSS BROS. & MONTGOMERY, 610 Newport
Center Drive, Newport Beach, California 92660, Certified
Public Accountants, hereinafter referred to as "Auditors",
WITNESSETH
In cons' ration of the agreements, covenants and
conditions hereinafter contained and to be kept and per-
formed by the respective parties hereto, it is mutually
agreed as follows
1. The Auditors shall make an audit and exami�iation
of the books, accounts, records, and financial
statements of the City for the fiscal year
July 1, 1972 through June 30, 1973. Such audit
and examination shall be conducted by the Auditors
in accordance with generally accepted auditing
standards applicable in.the circumstances and
shall include such tests of the accounting
records and, such other auditing procedures as
the Auditors consider necessary.
2_. It is understood that, owing to the test char-
acter of audits and examinations, reliance must
1.
DJW :1 m
be placed on the adequacy .of the systems of
internalcheck and control as the principal
safef,uard against irregularities which such
audits mightnot disclose. However, during
the course of the audit and examination, the
systems of internal check and control will be
reviewed and weaknesses will be called to the
attention of, appropriate City personnel.
" 3. Upon completion of their work for the fiscal year,
but unless. extended by mutual agreement or other
wise altered by requirement of law not later than
# September 30, 1973, the Auditors shall file with
the City 50 copies of the Cty's financial state-
ments containing the Auditors' opinion on the
statements,
4. The Auditors shall render periodic reports on
the progress of their audit' and examination,
whenever required by the City or whenever deemed
necessa.`-y; provided, however, that written
progress reports shall not be requested by the
City more often than oncrQ a month during the
progress of the work.
5. Compensation to the Auditors shall be payable
on or about the first of each month for _cervices
r.
2.
r
r3.ndered during the preceding month. However.,
the total compensation for the .services herein _
provided shall not exceed $8,000.00 without
further approval in writing from the City.
6. In the event that the City shall request the
Auditors to perform work or render services in
addition to those which are 'usual and customary
in making an audit and examination of the books
and accounts of the City, the Auditors shall
before rendering-s:uch services advise the City
that such services are not covered by this
contract; any such additional services requested
after such advice shall be paid for by the City
at the Auditors' normal hourly rates
IN WITNESS WHEREOF, the parties hereto have set
their hands on the day, month and year first above written.
LYBRAND., ROSS BROS. & MONTGOMERY CITY 0 HUNTINGTON BEAC
By �.
By_
ATTEST APPROVED AS TO FORM:
City erk Cit Attorrxey
3.
4
r T
mom
CITY CLERK'S
AGREEMENT COPY
THIS AGREEMENT, made and entered into this 21st
day of August 1972, by and between the CITY OF HUNTINGTON
BEACH, a *municipal corporation, hereinafter referred to as
"City'-', and LYBRAND, ROSS BROS. & MONTGOMERY, 610 Newport
Center Drive, Newport Beach, California 92660, Certified
Public Accountants, hereinafter referred to as "Consultants",
WITNESSETH:
WHEREAS, the City desires to have (1) a manage-
ment audit of the purchasing and licensing functions, and
(2) a review of the internal controls relating to cash
flow in the Finance and Treasury departments;
NOW, THEREFORE, It is mutually agreed, as fellows:
1. The Consultants agree to initiate their ser-
vices on or about September 5, 1972, by
participatinb JU. meetings with the City
Administrator, staff and department heads,
for the purpose of clarifying the objectives
of the broad plan referred to above and to
establish a guideline and time period. The
City will make available the services of staff
members to assist the Consultants in arrang-
ing conferences, gathering data and acting
as liaison between the 'City Administrator,
and Consultants' personnel in conducting; this
study.
1.
v
2. The Uonsultants will work with the City
Administrator, staff and department heads
so that they will be familiar with the
facts, reasoning,_ and conclusions reached
bg the Consultants in, its study.
3. The work to be performed by th-� Consultants
shall be as follows
At the conclusion of the management
audit of the purchasing and licensing func-
tions, and a review of the inte}nal controls
relating to can flout in the Finance and
Treasury departments, the Corizultants will
issue a report containing findings and
recommend"" -ions pertaining to each of the
departments. X.i addition, the Consultants'
report wD.1 contain a timetable which
indentifies the individuals resp msible
for implementing each, recommendation and
the implementation target dates,
The Consultants will meet with the
City Administrator periodically on an _In-
formal basis to keep him advised as to
progress, findings, tentative recommendations,
and problems.,so that he will have a thorough
understanding of the work and will be in a
position to direct the implementation of the
recommendations.
4AOL
After a birief indoctrination period
in which the Consultants' staff will become
familiar with the crirter, ordinances and
regulations governing the activities of
the selected departments, the Consultants
will perform the following tasks:
(1) Collect anti analyze systems docu-
mentation, forms and organization charts
to gain an understanding of the workflow
and systems weaknesses, both intra and Inter
departmentally.
(2) Interview key perscns in the pur-
chasing and licensing functions, and in the
Finance and Treasury departments, tV determine
the work performn ed by each per ion, workload
volumes, the structure of the control system,
and specifJo problems which hinder the depart-
ments in the performance of their work.
(3) Interview key persons in selected
departments to solicit their opinions as t"
the level of service provided by the depart-
ments being reviewed
S
(4) Review the flow of funds and
"< related accounting documents from the time
revenues are originally collected through
deposit.
(5) Summarize the information collected
and prepare explanatory materials such as
flow charts and graphs
3,
(6} Review an understanding of the
systems and procedures with the departments
to gain their concurrence as to the accuracy
of the facts
(7} Prepare a draft of the report and
review it with the City Council and the
City Admixrsstrator. This report will
incorporate:
Findings and recommendations;
The reasons underlying each recommendation;
Organization charts (if applicable);
Designs and diagrams, as needed, to illus-
trate and explain recommendations; and
,I suggested program and timetable for put-
ting the recommendations into effect.
(8) Incorporate suggested improvements
emanating from the review session in, the
final report.
(9) Meet with members of the Cit;r
Council and the City Administrator to review
the findings and recommendations contained in
the final report,
4. The City shall make availably the services of one
staff member to direct the personnel referred to
3n paragraphs 1 and 3`to work directly with the
Consultants at their request, The Administrator
of the Ciwy will be available on reasonable
notice for conference and direction.
u.
5.
Upon receipt of invoices reciting services
performed, addressed to the City of Huntington
Beach, P. 0. Box 190, Huntington Beach, Calif-
ornia, 92648, attention of David D. Rowlands,
City Administrator, the City will pay the
Consultants an amount not to exceed $8,000.00
plus out-of-pocket expenses which are so in-
voiced as to show that they were reasonably
and necessarily incurred in the performance
of the above described services.
6.
While engaged in carrying out and complying with
the terms of this agreement, the Consultants are
independent contractors, and not officers, agents,
or employees of the City.
7.
This agreement may be amended or modified, pro-
vided this is done in writing and accomplished
with the same formality as is required for the
execution of this agreement.
IN WITNESS WHEREOF, the parties have set their
hands on
the day, month, and year first above written.
LYBRAND,
OSS BROS. & MONTGOMERY CITYX HUNTINGTON I3EA
X I�Aj.
BY s
i
Mayor
BY
ATTEST:
APP D AS TO FORM:
City erl G y At orney
I
COOPERS &. L,YI31= AND
CCRTt FIFO PUBLIC ACCOUNTANTS
IN PRINCIPAL AREAS 610 NEWPORT CENTER, DRIVE
OF THP_WORLD NEWPORT BEACH, CALIFORNIA 92660
714.644-8920
November 18, 1975
Mr. David D. Rowlands
City Administrator
City of Huntington Beach
2000 Main Street
Huntington Beach, Ca. 92648
Dear Mr. Rowlands:
As discussed with you in our meeting on November 14,
1975, we are transmitting to you a list of projects that we
believe should be considered as assignments for the internal
auditor over the next year.
1. Review the accounts in the Trust Fund, including
performing a summary proof of cash on a periodic
basis.
i 2. Periodically determine that all subsidiary accounts A
receivable detail listings agreq with the general
ledger, control. account. Determine that follow-up is
bjing made on all old accounts receivable.
3. Assist the Finance Department in completing the fixed:
asset inventory, evaluating the results, and record-
ing the fixed assets on the general ledger.
4. Perform an audit of business license revenue. This
would include a review of the orocedures to ascertain
that all businesses in the City are p+ying license
fees as well as an audit of a sample of businesses to
determine that the fee is appropriaLe.
5. Conduct an audit of Harbor and Beaches concessionaires
to determine that the City is being properly paid.
6. Coi,duct an audit of several businesses remitting occu-
par,.y tax to the City to determine that the amounts
being remitted are proper.
I
I-
f
Ad
COOPERS & L.Yk-bR,,, p
CERTIFIED PUBLIC ACCOUNTANTS
Mr. David D. Rowlands 2. November 18, 1975
7. Obtain copses of all lease agreements entered into
with the City and determine that all lease payments
due, the CLty have been made.
8. Perform an audit of oil well license fees and deter-
mine that the City 1-ss receiving their proper revenue.
We would like to suggest that the receive a copy of
any reports the internal auditor makes regarding projects
which affect the financial results of the City.
We appreciated th;- opportunity to meet with you and
hope you will view our suggestions :s evidence of our continu-
ing interest in the City of Huntington Beach. We will be
pleased to discuss any of the above suggestions with you at any
time.
Sincerely yours,
WJM:W WfI"-, am J. McClellan
JLS
3
�Y
City of Huntington Beach
} ° P.O. BoA ISO CALIFORNIA 92eU OFFICE OF THE CITY CLERK
July 7, 1975
Coopera & Lybrand
Certified Public Accountants
610 Newport Center Drive
Newport Beach, CA 92660
Gentlemen:
We are enclosing for your records a fully executed copy of the
agreement between the City and your firm relative to the audit
and examination of the books, accounts, records, and financial
statements of the City, the Huntington Beach Public Facilities
Corporation and the Parking Authority for the fiscal year July
1,`1974 through June 30, 1975.
Said agreement was approved by the City Council of the City of
Huntington Beach at an adjourned regula, meeting held Monday,
June 23, 1975.
Sincerely yours,
Alicia M. Wentworth
City Clerk
AMW j r
enc. 1
p;
��t
COOPERS & LYBRAN`D
CERTIFIED PUBLIC ACCOUNTANTS.
IN PRINCIPALAREA9 510 NEWPO'4T CENTER DRIVE
OF THE. WORLD NEWPORT BEACH, CALIFORNIA 92660
714-644-8920
July 2; 1975
Mr. David D. Rowlands
City Administrator
City' of Huntington Beach
P . 0. Box 7 9C
Huntington Brach, California 92648
Dear Mr. Rowlands:
Enclosed is a -copy of the agreement
for the current fiscal year between the City of
Huntington Beech and Coopers & Lybrand, which
has been signed by me as a partner of the firm.
I am sorry for the delay in the process-
ing,, but I have ,just returned to town after being
back East for some time.
Sine r ly,
Fti Cle an
WJMsj
Enclosure
V
JUL R 1975
CITY 0
N(NGTO
N sEAC[a
ADMINISTRATIVE , r�
cr.
P.
CITY OF HUNTINGTON BEACH CA 74-35
He B COUNCIL ADMINISTRATORCOMMUNICATION
HUNTINGTON BEACH
To Honorable Mayor and From City Administrator
City Council Members
Subject COOPERS & LYBRAND AGREEMENT Date June 13, 1974
FISCAL` AUDIT (Agenda item D-23)
This is an agreement between the City of Huntington Beach and
the Certified Public Accountant firm of Coopers & Lybrand.
The purpose of the agreement is to enable thFse auditors to
make an audit and examination of the books, accounts, records
and financial statements of the City, the Huntington Beach
Public Facilities Corporation and the Parking Authority for
fiscal year 1974. It is imperative that this agreement be
approved as soon as possible so that the auditors caW �commence
the necessary preliminary analysis immediately.
RECOMMENDATION
Authorize the City to enter into agreement with Coopers u
Lybrand to perform fiscal au,'it.
Respectfully submitted,
'60G pc'v�_�
David D. Rowlands
City Administrator.
DDR:eh
�f
City o ea
OFFICE OF THE. CITY CLERK
June 1$, 1974
Coopers & Lybrand
610 Newport Center Drive
Newport Beach, U 92660
Gentlemen:
The City Council of the City of Huntington Beach at its regular
meeting held Monday, June 17, 1974, approved the agreement between
the City of Huntington Beach and Coopers & Lybrand, 610 Newport
Center Drive, Newport; Beach, California.
Enclosed for execution is one signed copy of the agreement. Please
return a fully executed copy for our files.
Sincerely yours,
Alicia M. Wentworth
City Cleric
AMW:>scPs
Enclosure
j
'// 4,"
Ile 0
I ei�
16 Augus'l 197
TO: City Council
FROM: City Attorney
SUBJECT: Agreement between City and Lybrand,, Ross
Bros. & Montgomery, Certified Public Accountants
At the request of the City Administra4,or and Finance
Director, we transmit herewith two agreements between
the City and Lybrand, Ross Bros. & Montgomory, Certified
Public Accountants. These agreements are for a management
audit of the purchasing and licensing functions and for a
review of the internal controls relating to cash flow in
the Finance and Treasury Departments.
Respectfully submitted,
DON P. BONFA
City Attorney
DPB:lm
Attachments
R�CEJYq� "
CtTv CAPEJJK. � }r
IIUNTur&tfrr��9�` �,
® 4C..CN, CALIF.
CITY OF HUNTINGTON BEACH
REPORT ON EXAMINATION OF FINANCIAL STATEMENTS
® For The Year Ended June 30, 1974
COOPERS & LYBRANG
CC071F1CD PU0%,IC ACCOUNTANM
CITY OF HUNTINGTON BEACH
'®
TABLE OF CONTENTS
P.
Accountants' Report
1
Balance Sheet, All Funds
3
Balance Sheet, Special Revenue Funds
4
Balance Sheet, Debt Service Funds
5
Balance Sheet, Capital Project Funds
6
Analysis of Changes in Fund Balances, All Funds
7
Analysis of Changes in Fund Balances, Special
Revenue Funds
$
Analysis of Changes in Fund Balances, Capital
Project Funds
9
Statement of Revenue, All Funds
10
Statement of Revenue - Estimated and Actual -
General Fund
11
Statement of Revenue - Estimated and Actual -
Special Revenue Funds
12
Statement of Revenue, Expenditures and Fund
€
Balances - Debt Service Funds
14
Statement of Revenue - Estimated and. Actual -
Capital Project Funds
15
Statement of Expenditures and Encumbrances
Compared with Appropriations - General Fund
16
Statement of Expenditures and Encumbrances
Compared with Appropriations - Special
Revenue Funds
17
Statement of Income - Budgeted and Actual -
Water Utility Fund
18
Analysis of Changes in Retained Earnings
Water Utility Fund
19
Schedule of Operating Expense - Budgeted and
Actual - Water Utility Fund
20
Statement of Changes in Financial Position -
Water Utility Fund
21
Notes to Financial Statements
�)2
COOPERS & LYBRAND
CERTIFIED PUBLIC ACCOUNTANTS
- IN PRINCIPAL AREAS
OF THE WORLD
n
�rJ
City Council
City of Huntington Beach
Huntington Beach, California
the financial statements of the various funds and
account groups of the City of Huntington Beach as of June 30, 1974
and for the year then ended, listed in the foregoing table of
contents. Our examination was made in accordance with generally
accepted auditing standards, and accordingly Included such tests
of the accounting records and such other auditing procedures as we
considered necessary in the circumstances except as stat/d in the
following paragraph.
The Water Utility Fund does not maintain detailed records of
approximately $9,600,000 of purchased property and eouipment that
is capitalized. In addition, the Water Utility Fund has capitalized
approximately $8,370,000 for assets contributed to the City through
June 30, 1968 by subdividers at values estimated by City personnel.
There is no supporting documentation for the amount capitalized.
Contributione by subdividers since June 30, 1968 have not been
recorded on the books. Because we were unable to satisfy ourselves
by appropriate audit tests or by other means as a result of these
incomplete records we are unable to express an opinion on the
accompanying financial statements of the Water Utility Fund.
The City does not maintain detail property accounts and is therefore
unable to properly account for its fixed assets as ex, Ined in
Note 1. Generally accepted accounting principles applicable to
municipalities recommend that, in the absence of complete historical
cost records,; the fixed asset accounts be adjusted to reflect actual
or estimated acquisition costs of property currently owned. Because
of the possible material effect of the foregoing deviation from
generally accepted accounting principles we do not expreu an
opinion on the financial statements of the General Fixed Assets..
® In our opinion, the financial statements listed in the table of
contents other than the financial statements of the Water Utility
Fund and the General Nixed assets present fairly the financial
position of such funds and account groups of the City of Huntington
Beach at June 30, 1974 and the results of operations of such funds
i
� 1
CITY OF HUNTINGTON BEACH
BALANCE SHEET, ALL FUNDS.
Tune 30, 1974
Totals
Special
Debt
Capital
Water
-
General
General
(Memorandum
General
Revenue
Service
Project
Utility
Trust
Long -Term
Fixed
Only)
Fund
Funds
Funds
Funds
Fund
Fund
Debt
Assets
A S, S. E. T S.:
Cash (Note 2)
$8 121 680
$1 412
904
$5 930 330
$22 853
0141 197)
$772 097
$124 693
Cash advanced to fiscal agent
Accounts receivable
354 910
1 002 '728
271
903
474 071
9 000
8 o40
9E9
345 910:
2117 725
Less, Allowance for doubtful accounts
(24 758)
(2
088)
(1 670)
460
419
(21 000)
Receivable - federal grants
Property taxes impounded
603 879
710 518
T10
518
295
308
Less, Reserve for property taxes impounded
(710 518)
(110
518).
Special assessments receivable
43 090
43 090
Prepaid leases and other
268 411
171
425
96 986
Deposits
32 269
32 269
Due from other funds
780 145
65
971
706 071 -
8 103
- Estimated future revenue and resources
for long-term debt retirement
(Notes 3 and 4)
16 330 878
$16 330 878
Property and equipment, less allowance
-
for depreciation (Note 1)
29 511 801
_
15 484 42o
$111 027 381
-
ST o24 M
1 920 115
,47 , 4 398..
d° '„�.;9,
168 211,
61 861 421
1a2 7�6
16J30 878
1L027.481
LIABILITIES, RESERVES, FUND BALANCES,
AND. RETAINED EARNINGSi
General payables
1 785 050
960
719
676 709
147 622
Contracts payable (Note 5)
290 122
289 222
goo
Payroll payables
551 084
535
181
15 903
Due to other funds
780 145
8
103
594 221
111 850.
65 971..
Deferred compensation payable
117 741
117
701
Other liabilities
164 529
149
764
14 064
701
Deposits held in trust
132 796
132 796
Natured interest payable
33 687
9 000
24 687
Bonded debt, not matured (`rote 3)
8 982 324
57 324
3 160 GOO
5 765 000
Long-term leases payable (Note 4)
10 565 878
10 565 878
Deferred rental income (Note 4)
650 000
650 000
Reserved for:
Encumbrances (Note 1E)
1 622 262
135
266
1 400 039
86 957
Revenue bond retirement
476 550
476 550'
Other
13 484
13 484
Contribution to utility
8 466 006
8 466 006
Investment in general fixed assets
14 027 381
14 027 381
Fund balances
3 862 953
13
381
3 849 275
30 893
(50 596)
Retained earnings
5o3 081
_
4 5C3 081
$ G25 ORa
$I 9go al
$7 544 V,
$32 893
$168 211
$IuL 421
$11 796
$16 xzo 878
$14 027 i
See accompanying notes.
IS M
CITY OF HUNTINGTON BEACH.
-
BALANCE ,SHEET;: SPECIAL REVENUE FUNDS
June 30, 1974
Youth
Civic
Planned
Special
Employ -
Special
Parks And
Improve-
Local
Assess-
Revenue
meet
Gas Tax
Recreation-
ment
Sewer
Drainage
Grant
ment
Sharing
Service
Total
- Fund
Fund
.Fund
Fund
Fund
Fund
Fund
Fund -
Fund
A S S E T S:
-
..
cash
$5 930 330
$508 66o
($9 047)
$1 010 585
$1 567 447
$1 285 109
($35 691'
$22 394
$1 580 501
$372
Accounts receivable
474 071
227 175
4 674
107 460
34 917
14 668
35 6o6
28 270
21 301
Less, Allowances for doubtful
accounts
(1 670)
(1 670)
Receivable - federal grants
295 460
35 483
259 977
Special a sessments receivable
43 090
43 090
.Prepaid lease .erpense
96986.
-
96 986
Die from other funds
7U6 071
85 791..
5o8 43o
ill 850
7 544 398
821 6
IL 61a
�6
?, II 794
1 41i fizz
45 798
as 75
i 001 779
Lmlit; . w3 :RESERVES,
AND 3hND BALANCES;
General payables
676 7U9
215 376
113 997
124 760
181 474
38 231
150
2 349
372
Contracts payable (Note 5)
289 222
289 227
Duo to other funds
394 221
85 790
491 001
17 430
Othor liabilities
14 064
11 346
2 718
Bonded debt, act^- matured (Note. 3)
57 324
57 324
Deferredrental income (Note 4)
- 650 000
650 000.
Reserved for:
Encumbrances (Note IE)
1 400 039
284 085
285 068
269 878
20 407
177 1577
32
363 394
le
Other
13 464
13 484
Fund balances
3 849 215
322 16
(03 6 452)
71 731
1 993 251
259 269
2 86)
16 132
i 496 036
18)
$7 544 a48.
$621 626
$$2 611
$1 Ili 375$2
110 794.
$1 411.627
sai 754
$L§jLUa.
$_M
See accompanying notes;..
4
CITY OF HUNTINGTON BEACH
BALANCE SHEET, DEBT SERVICE
FUNDS
June 30, 1974
1955 Water
1970 Park
Interest And
Bond Interest
Redemption
And Rede',I tion
Total
Fund
Fur
A S S E T S:
Cash
$22 853
$65 o66
($42 213)
Cash advanced to fiscal agent
9 000
900
8 100
Accounts receivable`
8 040
995
7 045
66
(2Z 068)
LIABILITIES
AND FUND BALANCES:
Matured interest payable
9 000
9Q0
a 100
Fund balances
30 893
66 06l
(35 168)
A66 261
($27 068)
See accompanying notes.
5
CITY OF HUNTINGTON BEACH
BALANCE SHEET, CAPITAL 'ROJECT
FUNDS
June 30, 1S(4
197E
Park Bond
1955
Special Capital
Construction
Water Bond
Total
Outlay Fund
Fund
Construction Fund
A S S E T S:
Cash
($141 197)
$99 429
($317 936)
$77 310
Accounts receivable
989
989
Receivable - federal grants
3o8 419
308 41
168 gli
129 41a
LIABILITIES, RESERVES
AND FUND BALANCES:
Due to other funds
111 850
ill 850
Reserved for encumbrances
86 957
86 957
Fund balances
0 96)
13 461
(121 6 )
77 310
$168 211
$100 418418
($2 517)
$23-110
See accompanying notes.,
6
CITY OF HUNTINGTON BEACH -
ANALYSIS OF CHANGES IN FUND BALANCES, ALL FUNDS
For The Year Ended June 30;
1974
Totals
Special
Debt
Capital
(Memorandum
General
Revenue
Service
Project
Only)
Fund
Funds
Funds
Funds
Balances, July 1, 1973
$6 387 557
$779 69.6
$5 097 463
$42 438
$45 6�0
Revenues
24 120 561
16 225 820
7`395 189
493 345
6 207
Transfers•from other funds
1 686 433
1 653 726
32 707
Other additions
1 958
1 097
861
Total additions
25 808 952
17 880 643
7 428 757
493 345
6 zo7
Less:
Expenditures and nonexpenditure
disbursements
24 676 n6
18 543 895
5 122 568
504 890
504 763
Reserve for encumbrances a'tlnt 30, 1974
1 363 558
70 356
1 293 202
Transfers to other funds
1 643 882
32 707
1 611 175
AdJustment to remove advance rental
income receiver- in prior yea,.,?,",
and credited to fund balance (Note 4)
—550 000
650 000
_
Total deductions
28.333 556
18 646 958
8 676 945
�04 890890
05 4 763
Balances, Juno 30, 1974
$3 865 953
$1 L8
$3 849 275
$�0 84�
($30 596)
See accompanying notes,
7
s�nen�im�n.111.1
��ie®
CITY OF HUNTINGTON BEACH
ANALYSIS OF CHANGES IN FU14D BALANCES,
SPECIAL REVENUE
FUNA5.
For The Year Ended June
30, 1974
Civic
Special
Parks And
Improve -
Library
Gas Tax
Recreation
meat
Sewer
-
Total
Fund
Fund
Fund
Fund
Fund
Balances, July 1, 1973
$5 097 463
$121 700
$634 400
($6 987)
$4498 778
$1 923 357
Revenues
7 395 189
' 329 145
709 102
1 993 241
267 711:
Transfers from other funds
32 707
�f6`
Other additions
861.
Total additions
7 428 757
1329 145
709 102
1 993 241
287 711
Leas:.
Expenditures and nonexpenditure
disbursements
5 122 568.
940 295
627 648
1 065 002
197 410
Reserve for encumbrances,
June 30, 1974
1 293 2r?
284 085
203 614
244 528
20 407
Transfers to other funds
1611.175
121 700
417 000
177 305
460 752
Adjustment to remove advance rental
.income received in prior ydars.
and credited to fund balance
(Note 4)
650 000
650 000
Total deductions
8 676 945
121 L0
1 641 380
1 008 567
2 420 282
217 81
Balances, June 30, 1974
$3 849 2+
-
$ 23 2 1G5
t$�06 452)
$71 7
$1
See accompanying. notes.
8
Planned
Local..
Special
Assess-
Revenue
Youth.
Employ-
meet
Parking
Music
And
Traff'c
Drainage
Grant
ment
Sharing
Service
Meter
Fund.
Promotion
Fund
Safety
Fund
- Fund
Fund.
Fund,
Fund
Fund
$783 836
Sit 790
$1 271
•1 145 998
$1 027
CS 2 0
446 522
1 Dos 923
1 174 494
13 633
S76 Rio
$357 608
32 707
861
44622
1 006 923
861
1 174 494
14 633
76 810
32 707
357 6o8
793 913
1 022 578
461 o62
14 660
177 156
363 394
18
76 810
357 6o8
971 DO
1 022 578
824 456
24 678
76 810
-
357 608
5259 289
(S2 A65)
$i6 lag
$1 496 096
(Wee)
CITY OF HUNTINGTON BEACH
ANALYSIS OF CHANGES IN FUND BALANCES,
CAPITAL PROJECT
FUNDS
For The Year Ended June
30, 1974
1970
Park Bond
1955
Special Capital
Construction
Water Bond
Total
Outlay Fund
Fund
Construction Fund
Balances, July 1, 1973
$467 960
$lo 961
$379 689
$7f 3110
Revenues
6 207;
2 500
3 707
Less
Expenditures, Central Park
M4 763)
( 05 4 763)
Balances, June 30, 1974
$13 461
($121 �57)
$77 31O
Seeaccompanying notes.
CITY OF HUNTINGTON
BEACH
STATEMENT OF REVENUE,
ALL FUND
For The Year Ended June 30, 1974
Totals
Special
Debt
Capital
(Memorandum
General
Revenue
Service
Project
Only)
Fund
Funds
Funds
Funds
Taxes
$13 381 686
$11 078 107
$1 814 o63
$489 516
Licenses and permits
2 033 158
1 834 580
198 578
Fines, forfeitures and penalties
510 377
152 769
357 6o8
Use of money .and property
1 184 556
682 395
495 832
3 829
$2 500
Current services
2 751 877
1 830 265
921 612
From other agencies
3 981 928
615 379
3 366 549
Other revenue
276 979
32 325
24o 947
3 707
$24 120 561
$16 225 820
$7 395 189
Ir
I
See accompanying notes.
10
l
CITYOF _HUNTINGTON BEACH
,STATEMENT OF REVENUE - ESTIMATED AND ACTUAL - GENERAL FUND
For The Year Ended June 30, 1974
Ov
Estimated
Actual
(Ur..
r)
Revenue
Revenue
Estimated
Taxes:
Property taxes - current year
$6 775
859
$6 238
642
($537
217)
Property taxes - prior year
143
690
429
368
285
678
0
Other property taxes
3
000
2
706
(294)
Penalties on delinquent taxes
16
o66
20
958
4
892
Sales and use taxes
3 300
000
3 300
470
470
Franchises
279
000
279
635
635
In lieu - water utility
260
000
280
163
20
163
Cigarette tax
48n
000
477
571
(2
429)
Occupancy tax.
6�
000
48
5.94
(11
406)
Total taxes
11 317
615
11 078
107
(239
508)
Licenses and permits:
Business licenses
430
000
429
294
(706)
4D
Oil well licenses
920
000
802
349
(11;
651)
Building permits
750
000
476
105
(273
895)
Other licenses and permits
146
000
126
832
(19
168)
Total licenses and permits-
2 246
000
1 834
580
(411
420)
Fines, forfeitures and penalties
154.000
152
769
(1
231)
0
Revenues from use of money
and property
817�875`
682-_395
(135
480)
Revenue from other agencies:
State
1 340
000
1 446
176
106
176
County
360
000
341
232
(18
768)
Federal'
11
707
11
707
Other
311
500500
31
150
(3
350)
Total revenue - from
other agencies
1 734
500
1 830
265
95
765
Charges for current service
730.495
015
379
(115
116)
Other revenue
59
550
32
325
(27
225)
Total revenue
general fund
$17 06o 035
$16 225 820
($8_.. )
See accompanying rotes.
11
CITY OF H NTINGTON
BEACH
STATEMENT OF REVENUE - ESTIMATED AND
ACTUAL
-
SPECIAL REVENUE
FUNDS
For The Year Ended June 30,
1974
Over
Estimated
Actual
(Under)
Revenue
Revenue
Estimated
Special gas tax funds
State gas tax
$1 431
000
$1 306
o91
($124
909)
�4
_Interest income
43
000
23
054
(19
946)
Total revenue -
special gas tax fund
1 474
'000
1 329
145
(144
855)
Parks and recreation fund:
Interest income
23
272
23
272
Subdivision license and
_unit lot fees
74o
0o0
685
830
(54
170)
Total revenue - parks and
recreation fund
740
000
709
102
(30
898)
Civic improvement fund:
Utility taxes
1 738
000
1 814
o63
76
063
Interest income
70
000
78
145
8
145
Other revenue
101
033
101
033
Total revenue - civic
improvement fund
1 808
000
1 993
241
185
241
Sewer fund:
Sewer permits
195
000
121
768
(73
232)
Interest income
70
000
126
942
56
942`
Local assessment
110
000
38
642
(71
358)
Other
359
359
Total revenue -
sewer fund
$375
000
$287
711
($87
289)
Continued
12
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
-
SPECIAL REVENUE•FUWDS,
Continued
For The Year Ended
June 30,
1974
Over
Estimated
Actual
(Under)
Revenue
Revenue
Estimated
Planned local drainage fund:
Interest income
$60
000
$109
82'j
$49
827
Local assessment
600
000
197
140
(402
860)
Other
139
555
139
555
Total revenue -
_planned
local drainage fund
660
00o
446
522
(213
478)
Grant funds
Grants
947
779
1 006
923
59
144
Revenue sharing fund:
Interest income
70
000
134
592
64
592
Federal revenue sharing
832
000
1 039
902
207
902
Total revenue - revenue
sharing fund
902
000
1 174
494
272
494
Youth employment service fund;
Various city's contributions
19
539
13
633"
(5
906)
i
Parking meter fund:
Meter collections
100
000
76
810
(23
190)
Traffic safety fund:
Vehicle code fines
360
U00
357
608
(2
392)
Total revenue -
special revenue funds
$7 386 31F
$7 U5,18�
$$ 871
See accompanying notes.
13
CITY OF
HUNTINGTON BEACH
STATEMENT OF REVENUE, EXPENDITURES AND
FUND BALANCES
-
DEBT
SERVICE FUNDS
For The Year
Ended June 30,
1974
1!b
- q55 Water
1970 Park
,terest
Bond Interest
,d
And
ReL,--iption
Redemption
Total
Fund
Fund
Revenues:
Property taxes
$489 516
$34 357
$455 159
Interest income
_ 3 829
2 244
1 585
Total revenue
493 345
36 601
456 744
®
Expenditures;
Redemption of serial bonds
165 000
35 000
130 000
Interest on bonds
339 425
6 !75
332 950
Fiscal agent's fees
�465
!'-08
357
Total expenditures
504 890
4l 583
463 307
(Deficit) to fund balance
(11 545)
(4 982)
(6 563)
Fund balances, July 1, 1973
42 438
71 043
(28 605)
Fund balances,
June 30, 1974
$
$66 061
{$35 168)
i
•
See accompanying notes.'
�
14
CITY OF HUNTINGTON
BEACH
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL - CAPITAL PROJECT
FUNDS
For The Year Ended June
30, 1974
. ver
Estimated
Actual
(Under)
Revenue
Revenue
Estimated
Special capital outlay fund:
Interest income
$1 000
$2 500
$1 500
1970 park bond construction fund:
Revenue from federal
government
423 000
(423 000)
Sale of property
30 000
3 707
(c6 293)'`
Total revenue -
1970 park bond
construction fund
453 000
3 707
(449 293)
Total revenue -
®
capital project funds
$45 00Q
$6 207
($447 79a)
See accompanying notes;
_l5
CITY
OF HUNTINGTON
BEACH
STATEMENT OF EXPENDITURES AND ENCUMBRANCES
COMPARED
WITH APPROPRIATIONS - GENERAL FUND
For The Year Ended. June
30, 1974
Expenditures
Supplies
Total
Original
And Ot?;er
Expenditures
Appropria-
Personal
Fees And
Capital
And
tiors
Unencumbered
Services
Services
Outlay
Total Encumbrances
Encumbrances
(Note 1D)
Balance
General government:
City administration
$196 u43
$112 711
$2
418
$311
572
$608
$312 180
$315 569
$3 389
Finance department
445 243
63 854
175
605
684
702
5 941
696 643
725 451
34 808
City attorney
194 660
25 536
2
002
222
198
25
222 223
249 794
27 571
Planning
358 942
113 922
2
166
475
030
639
475 669
398 461
(77 208)
All other
2112 452
937 610
2
439
1 182
501
5.993,
1 188 4911
964 841
(223 653)
1 437 740
1 253 633
184 630
2 876 o03
2 654_]1b
(235 093)
Culture - recreation:
Library
462 164
155 844
7
510
625
518
? 073
632 591
(40 a30
7 639
Parks and recreation
996 174
236�425
28
037
L 260 i36
9 498
1 270 134
1 2 9 2,;4
19 130
1 458 338
392 269
35
547
1 886
154
16 571
1 902 725
1 929 194
26 769
Public safety:
Police
4 223 848
482 712
53
600
4 760
16o
7 653
4 767 813
4 727 -530
(40 183)
Fire
2 619 526
246 206
8
001
2 873
733
3 789
2 877 522
2 ;:Or ;.93
27 571
Harbors and beaches
914 799
133 182
20
862
1 068
863
6 225
1 075 088
1 18t 4c-,
-06 314
Building
541 210
37 433
30
972
609
615
1 140
610 755
632 512
21 757
Other
4o 468
188 956
52
229
476
2.872
232 348
273 112
40 764
8 339 851,
1 088 489
113
507
9 541
347
21 679
9 563 526
9 719 749
156 223
Highway, sanitation
and waste removal
Streets
1 030 107
906 693
101
888
2 038
688
12 861
2 051 549
2 3,5 816
294 267
Engineering
692 .748
55 430
11
21y
758
897
693
759 590
741 830
(17 760)
Other
438 023
978 540
25 743
1 442 306
5 346
1 447 652
1 545 280
97 628
2 AD 378
1 940 663
138 850
4 239
891
18 goo
4 258 791
4 632 926
374 135
Total
$13 396 10Z
$A 675 054
$!2J.34
$18 544 $45
$
$18 614 251
$18. 936 285
$ U-. 0j 4
Sea accompanying notes.
16
CITY OF HUNTINGTON BEACH
STATEMENT ON EXPENDITURES AND ENCUMBRANCES
.COMPARED WITH APPROPRIATIONS - SPECIAL REVENUE. FUNDS
For The Year Ended June 30, 1974
Civic
Planned
Youth
Employ -
Special
Parks And.
Improve-
Local
:
Revenue
went
Gas Tax
Recreation
went.
Setter
Drainage
Grant
Sharing
Eervice
Total
Fund
.Fund
Fund
Fund
Fund
Fund
Fund
Fund
Original appropriations (Mote ID)
$8 230 4311
$1 213 000
$ 47 o 000
$2 631.Z79:
$325 945
$363 5 199.
$947 779.
$1 987 392
$19 44o
Expendit,-res
5 122 568
940 295
627 648
1 o65 002
197 410
793 913
1 022 578
1161 062
14 66o
Encumbrances
1 293.202
284.085
203. 614
244 528
2. o 4o7
177 156_�
363 394
18
Toal expenditures and encumbrances
6 415. 770
1 224 380
831 262
1 309 530
217 Rij
971 069
1 022578
824 456
14 678.
Unencumbered balance
$,1 814 664
($iT AO)
($ql 262)
$1 2149
$ 0,�8 128
($605 870)
($ Z44 ZU)
$ 162 6
to 162
See accompanying notes,
17
a
CITY OF HUNTINGTON BEACH
WATER
UTILITY FUND
STATEMENT OF INCOME - BUDGETED AND ACTUAL
For The Year
Ended June 30,
1974
Over
4
(Under) .:r
BudE t
Actual
Budget
Operating revenues;
Metered water sales
$2 527
500
$2-269
258
($258 242)
Other water sales
63
500
89
277
25 777
2 591
000
2 358
535
(232 465)
Less, Operating expenses
2. 008
830
2 078
646
69 816
Net operating income
582
170
279
889
(302 281)
Add nonoperating income:
Interest income
65
500
50
202
(15 298)
Acreage fees
75
000
19
603
(55 397)
Tract fees-
75
000
62
793
(12 207)
New service
70
000
85
639
15 639
Other
60
024
52
930
(7 094)
345
524
271
167
(74 357)
Less, Nonoperating expense:
Bond interest
105
433
111
308
5-875
Fiscal agent ,fees
1
_920
1
344
(576)
Other
20
000
6
963
(13 037)
®
127
353
119
615
(7 738)
Net income
$800
$431 441
($ 68,200)
See accompanying notes.
18
CITY OF HUNTINGTON BEAC
WATER UTILITY :F EJND
ANALYSIS OF CHANGES IN RETAINED EARNINGS
For The Year E�idea Jane 30, 1974
Balance of retained earnings, lulg 1, 1973
$4 079
190
A-1d
Net income for the year ended 3u ie 30, 1974-
431.
441
Reduction in reserve for 1955 G. 0. bonds-
35
000
Less transfers to general fund
(42
550)
Balance of retained earnings,, June 30, 1974
$1
See accompanying notes.
19
CITY OF HUNTINGTON BEACH
WATER UTILITY FUND
SCHEDULE OF OPERATING EXPENSE - BUDGETED AND AC''1U
For The Year Ended June 30, 1974
Under
(over)
Budget
Actual
Eudet
Water source:
Purchase of water
$350
000
$509
263
($159
2635
Materials, supplies and service
7
580
8
162
(582)
Total water sou-nle
357
580
517
425
(159
845)
Wello and treatment plant:
Labor
47
500
43
3117
4
153
Pump tax
300
000
220
488
79
512
Materials, supplies and service
112
170
105
082
7
088
Total wells and
treatment plant
459
670
368
917
90
753
Transmission and distribution:
Labor
177
504
164
652
12
852
Materials, supplies and service
l0
340
15
311
(4
971)
Total. transmission and
distribution
187
844
179
963
7
881
Customer accounting:
Labor
25
000
25
038
(38)
,V
Accounting
118
200
ill
155
7
045
Uncollectible accounts
4
0�J0
34
1,187
(30
487)
Total customer ac oou.nt;ing
147
200
170
680
(23
480)
Administration and general:
Labor
23
926
42
787
(18
861)
Leases
108
410
19
882
88
528
Other
104
200
108
989
(4
789)
236
536
171
658
P
878
Depreciation
360000
389
840
840)
In -Lieu tax,
260
000
280
163
(20
163)
Total operating expense
' 2 0082_
0 $
646
($69 8? 6 )
Zee accompanying not4s.
20
CITY OF HUNTINGTON BEACH
WATER UTILITY FUND
STATEMENT OF CHAA?GES IN FINANCIAL POSITION
For The Year Ended June,30, y74
Fund were provider] by:
Net i romp
$431
-441
Plus items not requiring
working capital - depreciation
389
84C
821
281
Funds wei,e used for;
Additions property and equipment
356
653
1963 water revenue bond repayment
100
000
Transfer to general fund
42
550
Other
2
502
501
705
Increase in working capital
Changes in working capital are comprised of:
Cash
150
142
�p
Cash a.dvanoed to fiscal agent
17
142
Accounts .receivable, net
51
383
Due from other .funds
(1
274)
,7eneral payables
(21:
763)
Pay-•dll pa,yables
(5
160)
Due to other funds
11.9
745
Other liabilities
J
000
Matured interest payable
3
36'.
Increase in working capital
$
See accompanying notes.
�
21
CITY OF HtiNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
June 30- 1974
0
1. Summary Of, Accounting Polici.�s:
A. Niethod Of Accounting:
The City, like most municipalities, uses a modified
accrual b�.is of accounting udder which expenditures
are recor -d when incurred and revenues are generally
recorded w,.:en received.
® B. General Fixed Assets:
The General Fixed Assets acquired by the City prior 'co
July 1, 1973 are not recorded on the City's books.
General Fixed Assets, excopt municipal improvements
other than buildings, acquired sinceJuly1, 1973 are
recorded at cost on she City's books.
C. Water Utility Plant, I'ropert And Eq ipment And Depreciati.:,,-
The accounts for the water utility plant include $17,970,235
of property and equipment, less $2,666,661 accumulated
•depreciation. Of the total $17,970,235, $9,596,837
represents capital outlay at cost and $8,373,398 represent'
an amount for assets contributed to the City through
Jun,- 30, 1968 by subdividers, at values estimated b
City personnel. Contributions by subdividers since
June 30, 1968 are not recorded on the books of the
City. Depreciation is provided on the straight-11ne
method over the estimated useful. `I:l.ves of the assets.
D. Appn.: t iat o.L� ;
The City adopts a budget annually which appropriates amounts
for each dep8:.rtment or division. As of year-end. the City
Council revJees these appropriations. Amounts included in
the financia", statements represent original rather than
revised appr,.)priations.
®, E. Reserve For Encumbrances;
The City records obligations in the form of purchase
contracts and other commitments which are chargeable to an
appropriation and for which a part of the appropriation is
reserved. They cease to be encumbrances when the actual
liability is incurred.
Continued
22
v
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1974
1. Summary Of Accounting Policies, Continued:
F. Special Assessments:
The City has numerous local improvement districts and
maintains a separate special assessment fund for each.
The City records tie monies received and disbursed for
the construction of the improvements for which the
District was created, and the receipt and disbursement
of monies handled for the payment of interest on and
retirement of principal amounts of the bonded indebtedness
in the respective funds. The City acts only as a fiscal
agent.
G. Fedcr al Grants, Revenue Sharing, Etc.:
The City maintains restricted use funds and special revenue
funds to comply with requirements of state and federal
statutes stipulating that monies apportioned, to the City
be spent only for certain designated _functions. During the
fiscal year ended June 30, 1974, the. City received monies
from the federal government under revenue sharing which
has been accounted for in a separate fund.
H. Pension Plan:
City employees participate in the Public Employees'
'retirement System (administered by the State of California)
which elan covers substantially all employees. The total
pension expensp, recognized by the City for the fiscal year
ended June 30,, 1974 was $975,000. The excess, if any, of
the :ictuaria.11y computed value of vested benefits over the
total of the above 'pension fund is not available.
I. Vacation And Sick Leave:
The City expenses vacations as they are taken rather than
as vested. The present; vacation policy is that the iacations
vest as earned with certain l:t:mitations. At June 3G, 19,,'4
the total tested vacation was approximately $765,000.
The City also expenses sick leave as taken rather than as
vested, At June 30, 1974 ,he total vested sick leave was
a approximately $305,000.
CITY OF HUNTINGTON BEACH
NOTES TO FINANVAL STATEMENTS,
Continued
June 30, 1974
2. Cash:
At June 30, 1974 cash consisted of the following:
Active bank accounts s163
670
Time certificates of deposit 6
830 000
Temporary investments in
U.S. Government securities,
at cost, which approximates
market, 1
125 000
Cash. on hand
3 010
�
$8
121 680
3, Bonded. Debt. Not Matured;..
Matured/
Balance
Retired
Balance
Original Not Matured
During
Not Matured
AmountJuly 1,-
1973-
June 30
Issue Sold 1973
1974
1974
General Obligation
Bonds:
16
1970 park bends,
with interest'
rates 5.5% to
6%. Maturing
annually on
March 1 in
varying amounts
wit"i final
maturity In
995 $6 000 000 $5 650 000
$130 000
$5 520 000
1955 water bonds,
with interest
rates 2% to 3%,
maturing on
August 1,, in
installments of
$35,000 bo 1980 860 000 280 006
35 000
245 000000
$6 860 000 5-93
$1k000
00;0
Continuer
�
24
I
,CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1974
3. Bonded Debt Not Matured, Continued:
Mats,
Balance Re' Balance
r_igina.l Not Matured Di loot Matured
sunount July 1, 1 June 30,
Issue Sold 1973 1974 1974
Revenue Bonds.
1963 water
revenue bonds
Series A,
'',.25% to 4.75
maturing annually
on Nove ,fiber 1
in var, . g
amount. ith
final ri._. urity
in 1993 o 000 $_3 260 000 $loo 000 16Q 0(000
•
The general obligation "pond balance of $5,765,000 represents a
future liability of the City. The $3,160,000 water revenue
bonds do not represent a general liability of the City of
Huntington Beach.
At June 30) 1974 there were $=,950,000 authorized but unissued
1163 water revenue bonds.
Special assessment district bonds outstanding totaled $57,324.
See Note 1P.
4. Long -Term Leases Payable:
Civic Center $8 _386 437
Central Library 2 179 441
$1Q =65
Civic Center;
The City has entered into a nonca.ncellable lease and sublease
agreement with the Hanting=:ion Beach Public Vacilit ies Corporation
for the; Huntington Beach Civic Center. the City has leased
to the corporation the civic center site for $350, 000 advance
rental. Term of the lease is from January 15, 1972 to ope week
after the termination of the sublease.
Continued
25
1J'
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1974
4. Long -Term Leases Payable, Continued:
•
The corporation has subleased the civic center site and
improvements to the City for $854,900 annual rental.
The sublease commenced July 1, 1974 for a term of 30 years
or until after all debts of the corporation related to the
civic center have been discharged, whichever comes first.
Central Library:
The City has entered into a noncancellable lease and sublease
agreement with the Huntington Beach Public Facilities Corporation
for the Central Library. The City has leased the site to the
corporation for $300,000 advance rental. Term of the lease
is from September 1, 1972 to one week after ternina-ion of
the sublease.
The library is currently under construction and is projected
to be completed in 1975 et which time the City will take
possession and the sublease �.11 commence for a term of 30 years
or until all debts of the corporation related to the library
have been discharged, whichever comes first.- Annual rental
under the sublease will be $399,000.
The City is to pay all taxes, insurance, administrative and
maintenance costs under the leases. Title to site improvements
will pass o the City at the termination of the leases. The
leases are deemed to be financing arrangements with the iela.ted
costs of land and buildings (equivalent to the future rental
payments discounted at approximately 8k%) being recorded in
the General Fixed Assets and the lease commitments teing
recorded in general long-term debt. Advance rentals received
by the City are recorded as deferred rental income and will be
amortized over the terms of the sublease.
5. Contracts Payable:
The City hf_ water, sewer and drainage reimbursement agreements
which provide for reimbursement to developers pf cost incurred
in constructing water, sewer and drainage facilities to the
extent fees are collected from users of the facilities. The
City follows the practice of recording the fees as a liability
as they are collected and charges payments to developers under
the agreements to a liability account.
r
CITY OF HUNTZK--TTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1974
6. Commitments
And Contingencies:
The City
has entered into lease agreements as follows:
(a)
Water storagecapacityin the San Joaquin
Reservoir fora term of 50 years commencing in 1967.
(b)
Parking facilities from the Huntington Beach
Parking Authority commencing in 1969 for a term
of 24 years or after all of the 1968 revenue bonds
of the Authority are retired.
(c
Park site from Ocean View School District commencing
®
June 19, 1974 for a term of five years. The City
may cancel the lease at the end of any budgetary
year. If the City makes all lease payments during
the five-year period title to ;he property will pass
to the City.
The minimum annual rental commitment under the above
leases is as Follows:
1975 $334 925
1970 334 925
1977 329 925
1978 329 925
1979 265 050
Five years
198o-19841 325 250
Five years
1985-1989 1 310 250
Five years
1990--1994 1 050 200
Remainder 220 000
Continued
+�
27
4
t
r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS,
Continued
June 30,,1974
6.
Commitments And Contingencies, Cor!tinued.
As of June 30, 1974 the City is defendant
in a number of
suits arising in the normal course of bu8iness
and covered by
insurance. In addition to the above suits
there: is a class
action suit against the City in the amount
of $8,000,000 for
which, according to the Office of the City
Attorney, settle-
ment is being proposed through the payment
of attorney's fees
in the sum of $300,000.
As a result of a police helicopter erc,-"sh in
August 1964, the
City has been named in two suits totaling
$1,750,000.
.
Maximum insurance coverage is $1,000,000.
Outcome of the suits
is not known at this time.
4
0
28
IN. PRINCIPAL AREAS 610 NEWPORT CENTER DRIVE.
OF THE WORLD NEWPORT BEACH, CALIFORNIA 92660
(7I4) 644-8920
September 15, 1975
t To the Members of. the City Council
City of Huntington Beach
I Attention: Mr. David D. Rowlands
I City Administrator
Gentlemen:
We have completed our preliminary work on the examination of
the City°s records for the year ended June 30, 1975, which
in(i,luded testsof the City's- acco anting, controls and related
procedures, and our review of the data processing activity of
the City for the year ended June 30, 1975.
In this letter, we would like to comment on our find'ngs and make
some recommendations which might -assist the City in better
performing its financial and operational functions. Those comments
which are repeated from previous years are indicated on the Table
of Contents.
In our review, we noted significant improvement in the areas of
cash receipts and revenue documentation.- These areas were the
subject of numerous continents by us in previous years.
Should you have any questions regarding any aspects of this report,
please call us. We will be pleased to meet with the City Council
or its designee to discuss these mattes further.
Very truly yours,
WJM: ds;
JLS
CITY OF HUNTINGTON BEACH
REPORT TO MANAGEMENT
TABLE OF CONTENTS
Page
A.
REVENUE:
1.
Accounts Receivable - Subsidiary Ledgers*
1
2.
Incomplete Fixed Asset Records*
1
B.
PURCHASING:
r
1.
Review Of Vendor :Invoices
2
2.
Purchase Orders
2(a) Proper Use of Purchase Orders*
2
2(b) Review Of Open Purchase Orders
3
3.
Prenumbered Receiving Report*
3
4.
Cash Contracts*
3
C.
PAYROLL:
1.
Personnel Files Are Not Maintained On a
Current Basis
4
D.
REIMBURSEMENT CONTRACTS:
1.
Incomplete Records*
4
2.
Timing Of Payments To Contractors
4
E.
DATA PROCESSING.
I
1.
Improve Current Data Processing Bac'zup And
Recovery Provisions
5
2.
Programming Work Orders Should Be Under
Numerical Control*
5
3.
Implement A Manual Log For .-ording Computer
Reruns
5
4.
Improve Control Over General Leafier Batch
Adjustments
6
5.
Revieur Batch Control Slips For Proper
Authorization Of Input
6
6.
Improve Control. Over General Ledger Report
Distribution*
6
*Comment
is a repeat from previous Reports to Management,
with
applicable update.
CITY OF HUN'TINGTON BEACH
REPORT TO MANAGEMENT
"v A. REVENUE
Management Comments Revenue Cycle
1. Accounts Receivable subsidiary Ledgers
f
As noted in the previous audit, the City is currently
recording amounts due from various persons and entities
to the general ledger of the appropriate fund. In some
cas(ys, we noted that subsidiary ledgers providing the
detail of amounts due are not being maintained and, in
most cases, are not being reconciled to the general ledger
control accounts on a monthly basis.
We again recommend the City maintain subsidiary records for
all accounts receivable and reconcile all subsidiary ledgers
to the general ledger on a monthly basis. We understand
that the City is currently reconciling all subsidiary
ledgers to the general ledger and that it is anticipated
that the reconciliations will be completed before completion
of our audit.
2. Incomplete Fixed Asset Records-
The water utility fund property, plant, and equipment
records do not include costs for assets contributed to the
City since 1968. The omission of these assets results in an
understatement of depreciation of property, plant, and
equipment.
In order to provide more accurate cost information for 'rate
setting purposes, we recommend the City develop costs fc�r
all plant assets contributed to th:e water utility.
i An attempt to develop t_iese costs is currently being made,
and it was planned that the completed cost analysis would
be included in the books at June 30, 1975.. The project is
still incomplete and it appears there will be no adjustment
of the books at June 30, 1975. At this time, there is no
reason to believe the adjustment to fixed asset will not be
made -it June 30, 1976.
1
B. PURCHASING
Management Comments - Purchasing Cycle
1. Review Of Vendor Invoices
There is no procedure for reviewing the accuracy of vendor
invoices for invoices without a purchase order. We also
noted that many invoices paid were not original ;invoices.
The procedure of not reviewing invoices for accuracy and
paying on other -than original invoices may result in
unauthorized disbursements.
h_ ,:ecommend the City verify mathematical accuracy of all
vendor invoices and authorize payments for original invoices
only. We further recommend the City design a stamp to be
used on all vendor invoices with spaces for each mathematical
function to be performed. The person performing the function
should initial the appropriate space.
2. Purchase Orders
a. Proper Use Of Purchase orders
At the time of our review, many departments were
making purchases directly with vendors and forwarding
invoices for payment on check requests. In situations
where immediate goods or aervices are required, this
procedure is acceptable. However, the enormous_
increase in the use of check requests indicates that
this procedure is being used to facilitate ease of
departmental purchasinginstead.
Excessive use of check requests for payment of goods
and services increases the possibility of duplicate
payments due to Tack of any numerical control over
such purchases. This procedure also decreases effective
and efficient management in the Purchasing Division
for items that could possibly be purchased at lower
costs through purchase order processing, and decfceases
the'reliance on budgetary analysis for Expenditures
and Encumbrances since no encumbrance is reported
nor expenditure recorded °ntil time of payment:
We understand that, subsequent to our review in the
above area, significant changes were implemented
throughout the purchasing system. As a result of
these changes, purchase orders and encumbrance runs
are being processed on a daily basis allowing for
toffective follow-through of pi�chases on a more
h
timely basis by the Purchasing Division. This should
enable requesting divisions to use purchase orders
for items not needed immediately but at the same time
ensuring immediate processing of the request, thereby
significantly improving the controls in the purchasing
system.
In addition, we understand that the City has closed
all open accounts effective June 11, 1975, and that
procedures have been implemented to decrease the
time needed by Purchasing to place orders. This
procedure should result in the increa::ed use of
purchase orders.
b. Review Of Open Purchase Orders
Open purchase orders are not reviewed on a timely
basis. our review revealed approximately 15 purchase
orders that had been outstanding in excess of one
year.. This resulted in undue amounts encumbered and
delays in receipt of items needed by the various
departments.
We understand that one year may not be excessive for
equipment orders; however, many of the orders reviewed
were for items other than equipment and should be
investigated.
We recommend that all open purchase orders be reviewed
on a more timely basis in order that the purchasing
function ma{- be more efficiently utilized.
3. Prenumbered Receiving Report
As previously noted, there is no prenumbered receiving
report used by the various departments of the City. At
present, each department submits various types of documents
to the Finance Department as evidence of the receipt of
goods. The effect of this is 'that there is no assurance
that all open receivers are matched and processed in a
timely manner. We again recommerd the City design a
prer_umbered receiving report to be used by all departments
and that accounts payable account for the processing of all
receivers by reference to the numbers issued, thereby
ensuring that all receivers are properly processed.
4. Cash Contracts
Cash contracts are not always encumbered, nor are formal
purchaso orders always written after contracts have been
awarded.
We recommend that all contracts be included in the normal
system of preparing purchase orders and encumbering
amounts committed.
M
C ; PAYROLL
Management Comments Payroll
1. Personnel Files Are Not Maintained On'A Current Basis
Personnel files in the Personnel Department did not
include currently authorized deductions and in one case
the employee range and step indicated within the personnel
file had not been updated since 1968
The effect is to weaken control over payroll transactions,
and to increase the amount of time needed to review
employee history.
We recommend that an employee deductions summary card be
prepared indicating all authorized reductions signed by
the employee and maintained in the individual personnel
file. An update should be performed at least annually with
a comparison of EDP output to ensure that personnel files
and EDP runs agree.
D. REIMBUM',IMENT CONTRACTS
t
Management Comments - Reimbursement Contracts
1. Incomplete Records
Detailed records for reimbursement contracts are not being
maintained on a current basis. Subsidiary recorde not.
complete and the general ledger is not adjusted lect
liabilities of the City. The lack of procedures icording
reimbursement contracts may result in a misstates
liabilities and fund balances.
We again recommend the City develop procedures for recording
G:.tivity in the reimbursement contracts on a timely basis.
We unde-Ystand an individual is currently being trained to
take overall responsibility for contract control and review.
P 2. Timing Of Payments To Contractors
�i We noted advances being paid to contractors for offsite and
oversize water development prior to the City being reimbursed..
This procedure does not appear to be in accordance with City
Code S.3454(b) which states that reLlnds shall be made from
subsequent development. Payments made prior to the collection
by the City causes negative cash flow and increases the
potential for '.loss to the City if the full cost of the
development is not subsequently collected
4
We recommend that the City Attorney make an interpretation
of the City Code regarding water development as was done
for sewer development and that the City comply with the
interpretation.
E. DATA PROCESSING
1. Improve Current Data Processing Backu1 And Recovery
Provisions
Currently, the client has backup for important master files
and source program decks. However, this backup is loused
in the same building as the computer center. In addition,
no backup exists for operations or program documentation.
We again recommend that transaction and master rile data
backup as well as operations and program documentation
should be stored at an offsite location.
2. Programming Work Orders Should Be Under Numerical Control
The programming work order form, used by the EDP Department
to authorize and initiate new systems or program modifications,
is not maintained under numerical control. Without numerical
control, there can be no assurance that all program changes
are implemented under an established authorization procedure.
We recommend that the programming work order form be maintained
under sequential numerical control. In addition, we recommend
that a control log be established to record each request and
its assigned sequence number and that the request number be
referenced in all documentation; all request forms should be
permanently filed with program documentation.
The implementation of this recommendation should improve EDP
management control over programming requests,
34, Impalement A Mattual Log. For Record$,ng Compute Reruns
Production program reruns are listed in the daily Time
Accounting Billing System reports. However, no documentation
exists as to the reason for these reruns.
We recommend that a manual rerun log be established and
implemented to document all, production program reruns. A
rerun code could be utilized to describe the reason for reruns
(operator errors, data errors or program errors, etc.). This
information would greatly assist EDP management in identifying
problem systems and programs and would provide a better audit
trail for production processing.
4. improve Control Over General Ledger Batch Adjustments
currently, accounting ma4ntains a batch control log for general
ledger input. This log provides for the record Ag of the batch
number, the batch control total, the number of items .in the
batch, arid the batch processing status. There is no provision
to record adjustments made due to out -of -balance conditions.
We recommend that the batch control. lag be amended to
include adjustments �,cade to batch totals. Compliance with
this recommendations should provide a greater degree: of
control over the completeness of processing of the general
ledger system.
S. Review Batch Control Chips For Proper Authorizazion
Of Input
In the course of, our review, we ,found that neither accounting
nos EDP reviews batch .'ips for proper authorization prior
to processing the data.
We recommend that the accounting control clerk (currently'
responsible for logging all input to the general ledger system)
review batch control slips for proper authorization prior to
logging and forwG:`ding the batches to EDP. The implementation
of this recommendation should ensure that only properly
author,l,sed transactions are processed.
6. Zm2rove Control Over General Ledger Repo.; Distribution
At present, general ledger reports are delivered to accounting
by EDP. These reports are placed in a basket. User department
per*onnel take -their reports from the basket and distribute
them to individuals in their department. There is no procedure
in effect to, assure distribution is restricted to authorized
personnel.
We recommend that a distribution procedure be established to
ensure that general ledger reports are distributed to proper
user personnel and only to such personnels
CITY OF HUNTINGTON BEACFI
REPORT ON EXAMINATION OF FINANCIAL STATEMENTS
For The Year Ended June 30, 1975
COOPERS &. LYBRAND
CEI4TIr160 PUBLIC ACCOUNTAN7O
C'TY OF HUNTINGTON BEACH
TABLE OF CONTENTS
Page
Accountants' Report
Balance Sheet, All Funds
Balance Sheet, Special Revenue Funds
Balance Sheet, Debt Service Funds
Balance Sheet, Capital Project Funds
Balance Sheet, Enterprise Funds
- Analysis Of Changes In Fund Balances, All Funds
Analysis Of Changes In Fund Balances, Special
Revenue Funds
Statement Of Revenue, All Funds
Statement Of Revenue Estimated And Actual -
General Fund
Statement Of Revenue Estimated And Actual
Special Revenue Funds
Statement Of Revenue, Expenditures And Fund
Balances - Debt Service Funds
Statement Of Revenue, Expenditures And Fund
Balances - Capital Project Funds
Statement Of Expenditures And Encumbrances
Compared With Appropriations'- General Fu•id
Statement Of Expenditures And Encumbrances
Compared with Appropriations - Special
Revenue Funds
Statement Of Income - Budgeted And Actual--
Water Utility Fund
Analysis Of Changes In Retained Earnings
Water Utility Fund
Schedule Of Operating Expenses —Budgeted And
Actual, - Water Utility Fund
;Statement Of Changes In Financial Position -
Water Utility Fund
Statement Of Income (Loss) And Retained
Earnings (Deficit) Meadowlark Golf
Course Fund
Statement Of Changes In Financial Position -
Meadowlark Golf Course Fund
Notes To Financial Statements
COOPERS & LYBRAND
CERTIFIED PUBLIC ACCOUNTANTS
IN PRINCIPAL AREAS
OF THE WORLD
City Council
City of Huntington Beach
Huntington Beach, California
We have examined the financial statements of the various funds and
account groups of the City of. Huntington Beach as of June 30, 1975
and for the year then ended, listed in the foregoing table of
contents. Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests of
the accounting records and such other auditing procedures as we
considered necessary in the circumstances except as stated in the
following paragraph.
The Water Utility Fund does notmaintaindetailed records of
approximately $10,400,000 of purchased property and equipment that
is capitalized. In addition, the Water Utility Fund has capitalized
approximately $8,370,000 for assets contributed to the City through
June 30, 1968 by subdividers at values estimated by City personnel.
There is no supporting documentation for the amount capitalized.
Contributions by subdividers since June 30, 1968 have not been
recorded on the books. Because we were unable to satisfy ourselves
by appropriate audit tests or by other means as a result of these
incomplete records we are unable to express an opinion on the
accompanying financial statements of the Water Utility Fund.
The City does not maintain detail property accounts and is therefore
unable to properly account for its fixed assets as 'explained in
Note 1. Generally accepted accounting principles applicable to
municipalities recommend that, in the absence of complete historical
cost records, the fixed asset accounts be adjusted to reflect actual
or estimated acquisition costs of property currently owned. Because
of the possible material effect o." the foregoing deviation from
generally accepted accounting principles we do not express an
opinion on the financial statements of the General Fixed Assets.
In our opinion, the financial statements listed in the table of
contents ether than the financial statements of the Water Utility
Fund and the Genera) Fixed Assets present fairly the financial
position of such funds and account groups of the City of
Huntington Beach at June 30, 1975 and the results of operations of
CITY OF HUNTINGTON ?TEACH
BALANCE SHEET, ALL FUNDS
Tune 30, 1975
Total
(Memorandum
' General
Special
Revenue
Debt
Service
Capital
Project
Enterprise
Trust
General
Long -Term
General
Fixed
Only)
Fund
Funds
Funds
Funds
Funds
Fund
Debt
Assets
A S S E T S:
Cash (Note 2,
$7 912 138
$1 582
697
$5 333
146
$14 810
$83 353
$768 060
$130 072
Cash advanced to fiscal agent
357 893
6 619
351 274
Marketable securities C.Ote 3)
166 000
166 000
Accounts receivable (Note 9)
1 320 864
320
144
769
93n
9 740
220 658
383
Less, Allowance for doubtful
.
accounts
(15 758)
(2
088)
(1
670)
(12 000)
Receivable - federal grants
271 015
271
015
Property taxes impounded
889 957
889
957
Less, Reserve for property
taxes impounded
(889 957)
(869
957)
Special assessments receivable
24 636
24
635
Prepaid leases and other
2779 896
217
154
62
742
Deposits
40 969
8
700
32 269
Due from other funds
693 538
71
258
62G
280
2 000
Estimated future revenue and
resources for long-term debt
retirement (Notes 4, 5, and 6)
18 615 532
$18 615 532
Property and equipment, less
allowance for depreci2tion
(Note 1)
37 063 558
18 837 899
$18 225 659
66 730 281
2 189 165
7 088 788
Z_l
8 =
20 364 160
132 455
18 615 5�2
18 225 .
LIABILITIES, RESERVES., i�'UND
BALANCES AND RL•TAINED EARNINGS:
General payables
903 270
538
460
246
Eui -
118 003
Accrued interest payable
141 203
13
786
127 417
Contracts payable (Note 8)
274 567
273
667
goo
Payroll payables
700 409
681
246
19 163
Due to other funds
693 538
510
430
111 850
65 971
5 267
Deferred compensation payable
2 6 260
246
260
Deferred revenue
110 885
110
885
Other liabilities
223 990
209
720
13
869
401
Deposits held in trust
127 168
127 168
Matured interest payable
21 985
6 619
15 366
Bonded debt, not matured (Note �'_
8 675 478
35
478
3 050 000
5 590 000
Long-term debt (Note 5)
260 000
260 000
Long-term leases payable,
including_ deferred rental
income (Note 6)
13 406 302
640
770
12 765 532
Notes payable (Note 7)
2 272 000
2 272 000
Reserved for:
Encumbrances (Note IE)
613 079
327
790
285
289
Revenue bond retirement
441 550
441 550
Other
31,526
31
526
Contributions to Enterprise Funds
9 733 331
9 733 331
Investment in general fixed assets
18 225 659
le- 225 659'
Fund balances
5 101 023
61
018
5 050
952
24 $50
(28 497)
Retained earnings
4 '20 058
__
058
66 30 281
$189 3.65
$ 08� 8 788
$ 1 16p
$83 153
_�J20
S20�j64 160
$1 2 4
$1'8 6I5 532
$18 225 659
See accompanying nokes.
3
CITY OF HUNTINGTON BEACH
BALANC4: SHEET, SPECIAL REVENUE FUNDS
June 30, 1975
Plantled
Parks And
Civic
Local
Special
Revenue
Manpower
Special Gas
Recreation
Improvement
Sewer
Drainage
Grant
Assessment
Sharing
Grant
Total
Tax Fund
Fund
Fund
Fund
'Pund
Fuad
Fund
Fund
Fund
ASSETS:
Cash
$5 333 146
$1 344 687
$45 506
$1 176 244
$1 346 006
$698 227
($14 568)
$44-168
$722 796
($29 920)
Accounts receivable (Note 9)
769 939
532 010
66 377
138 o49
8 898
5 588
5 389
4 246
9 382
Less, Allowance for doubtful
accounts
(1 670)
(1 670)
Receivable - federal grants
271 015
271 015
Special assess.metrts receivable
24 636
24 636
Prepaid lease expense
62 742
62 742
Deposits
8 700
8 700
Due from other funds
620 280
508 434
111 850
7 088 788
1 B 60,
174 625
1 312 G23
1 8 2 034
815 665
(9 179)
73 O�iO
7, c0� 19
(2' 9201
LIABILITIES, RESERVES
AND FUND BALANCES:
General payables
246 807
8 497
1 90o
139 507
5 549
77 313
790
13.251
Contracts payable tNote 8)
273 667
27` 667
Vae to, other funds
5io 430
491 oo0
19 430
Other liabilities
13 869
513
11 346
2 010
Bonded debt, not matured (Note 4)
35 478
35 478
Deferred rental income (Note 6)
640 770
640 770
Reserved for:
Encumbrances (Note lE)
211 219
55 324
101 115
20 211
700
111
97 101
9 122
Other
31 526
31 526
Fund balances
5 050 952
1 812 876
172 212
431 031
1 834 923
(58 541)
(9 284)
16 132
_ 904 596
(2 993}
$7 288 788
$LLZL 697
$17U 621
$x 31?_ 6.9
$1�4
$81566
a
$2
$� I
9
20)2
See accompanying notes:
4
CITY OF HUNTINGTON BEACH
BALANCESHEET, DEBT SERVICE FUNDS
June 30, 1975
I
1955 Water
1970 Park
Interest And
Bond Interest
Redemption
And Redemption
Total
Fund
Fund
A S S E T S:
Cash
$14 810
$6o 449
($45 639)
Cash advanced to fiscal agent
6 619
825
5 794
Accounts receivable
9 740
1 027
8 713
3
6
O
LIABILITIES
AND FUND BALANCES:
Matured interest payable
6 619
825
5 794
Fund balances`
24 550
61 476
(36 926)
$
$ .?,— 0011
($ )
See accompanying notes.
mile 9:
r'ITX OF HUNTINGTON BEACH
BALANCE SHEET, CAPITAL PROJECT FUNDS
June 30, 1975
1970
Park Bond 1955
Special Capital Construction Water Bond
Total Outlay Fund Fund Construction Fund
A S S E T S:
Cash $83 353 $14 554 ($8 511) $77 310
83 3� 11 17 310
LIABILITIES
AND 'FUND BALANCES:
Due to other Sunda ill 850 112, 850
Fund balances (28 497) 14 554 (12036 77 310
$83353 $14 554
see accompanying notes.
ti
i
CITY OF HUNTINGTON BEACH
BALANCE SHEET,
ENTERPRISE
FUNDS
June
30, 175
Water
Meadowlark
Utility
Golf Course
Total
Fund
Fund
i A S S E T S;
Cash
$768
060
$4' 3
721
$_354 339
Cash advanced to fiscal agent
351
274
351
274
Marketable securities (Note 3)
166
0o0
166
000
Accounts receivable
')20
658
195
658
25 000
Less, Allowance for doubtful
accounts
(12
000)
(12
000)
Deposits
32
269
32
2-�j9
Property and equipment, less
allowance for depreciation
(Note 1)
18 837
899
15 644
053
3 193 841
20364
160
1
!�73 180180
LIABILITIES, RESERVES, AND
RETAINED EARNINGS;
General payables
118
003
118
003
Accrued interest payable
127
417
17
417
l o 000
Contracts payable (Note 8)
900_
900
Payroll -aayab?es
19
163
19
163
Due to other funds
65
971
65
971
Other liabilities
401
401
Matured interest payable
15
366
15
366
Bonded debt, not matured
(Note 4)
3 050
000
3 P50
000
Notes payable (Note 7)
2 272
000
2 272 000
Reserve for revenue 4ond
retirement
441
550
441
554
Contributions to Enterpx,ise
Funds
9 733
331
8 466
006
1 267 325
Retained earnings (deficit)
4 52.0
058
4 596
203
_ ('76 145)
_$
$16 790 980
$3 57,3g 180
See accompanying notes.
7
CITY OF HUNTINGTON BEACH
ANALYSIS OF CHANGES IN FUND BALANCES, ALL FUNDS
For The Year Ended June 30, 1,975
Total.
Special
Debt
Capital
(Memorandum
General
Revenue
Service
Project
Only)
Fund
Funds
Funds
Funds
Balances, July 1, 1974
$3 862 953
$13
381
$3 849 275
$30 893
($30 596)
Revenues
27 485 248
19
388
406
7 593 005
500 793
3 o44
Current year abatements
116 014
116 014
Reversal of prior year encumbrances
228"050
16
770
211 280
Transfers from other funds excluding
Enterprise Funds
2 118 940
2
118
940
Transfers from Enterprise Funds
42 550
42
550
Transfers front long-term debt (Nate 3)
260 OOG
260
000
Adjustment to set up abatements
applicable to prior years
expenditures (Note 9)
932 350
932 350
Total additions
31 183 152
21
826
666
8 852 649
500 793
3 044
Lesc:
Expenditures and nonexnenditure
disbursements
27 ?06 063
21
451
239
5 246 743
507 136
945
Reserve €or encumbrances
June 30, 1975
613 079
327
790
�5 289
Transfers to other funds
2 118 940
2 118 94o
Total deductions
29 93 082
21
779
029
7 650 972
507 136
L45,
Balances, June 30, 1975
$5 108 023
$61
018
$5M0 952
$24 0
($28 497)
See accompanying notes,
8
CITY OF HUNTINGTON BEACH
ANALYSIS OF CHANGES IN FUND BALANCES, SPECIAL REVENUE FUNDS
For The Year Ended June 30, 1975
Planned
Special
Parks And
Civic
Local
$pecial
Revenue
Manpower
Parking
Traffic
Gas Tax
Recreation
Improvement
Sewer
Drainage
Grant
Assessment
Sharing
Grant
Meter
Safety
Total
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Balances, July 1, 1974
$3 849 275
$ 2� 2 165
0306 452!
$71 737
$1 99 251
$259 289
($2 8651
$16 132
$1 496 036
($ 8)
_
Revenues
7 593 005
1 347 944
562 366
2 274 578
219 499
527 429
179 237
1 193 295
790 406
$85 473
$412 778
Current year abatements
116 o14
116 G14
Reversal of prior year encu-mbrancos
211 2BO
106 027
105 253
Adjustment to set up abatements
applicable to prior years
expenditures (Note 9)
93e 350
932 356
Total additions
8 852 649
2 396 308
562 366
2 3B0 605
21 499
J27 429
179 437
1 298 548
796 406
473
412
Leaf.
Exdizburr—^ ntsandnonexpenditure
5 246 743
450 273
83 702
1 374 244
357 611
014 559
185 551
1 217 244
833 559
Reserve for encumbrances
June 30, 1975
285 289
55 324
101 315
20 216
700
105
97 807
9 822
Tvansfers to oener funds
2 118 94D
400 000
642 752
_ _,_
—_
,� _,_,
574 93T
85 473
412 778
Total deductions
7 650 972
205 597
83 702
2 021 311
?77 827
845 259
185 656
^;,�.r_
1 889"988
843 381
85 473
412 778
Balances, June 30, 1975
$$ 050 952
1 812 876
$l,Z22 2
$ jl 011
ti 834 921
($ B 41)
($9 284)
$16 LU
$204 595
($;Lg )
See snCempanykng, notes,
A
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUE, ALL FUNDS
For The Year Ended June 30, 1975
Total
Special
Debt
Capital
(Memorandum
General
Revenue
Service
Project
Only)
Fund
Funds
Funds
Funds
Taxes
$16 538 825
$13 804 500
$2 236 875
$497 450
Licenses and permits
2 394 811
2 236 292
158 519
Fines, forfeitures and penalties
538 476
125 698
412 778
Use of money and property
1 088 928
767 233
316 348
3 343
$2 004
Current services
1 562 120
639 064
923 056
From other agencies
5 140 529
1 774 152
3 366 337
Other revenue
221 559
41 427
179 092
1 040
$2 485 248
$I 8� 8 406
$Z Uj 005
$ 00
$3 044
See accompanying notes,
10
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL - GENERAL FUND
For The Year Ended June 30, 1975
Over
Estimated
Actual
(Under)
Revenue
Revenue
Estimated
Taxes
f Property taxes - current
j year
$8 087
829
$8 045
399
($42
430)
Property taxes - prior
year
120
000
11
520
(108
480)
Other property taxes
3
000
3
783
783
I Penalties on delinquent
taxes
18
000
19
803
1
803
Sales and use taxes
3 800
000
3 521
982
(278
018)
Franchises
299
000
334
969
35
969
In lieu - water utility
382
350
388
258
5
908
Cigarette tax
521
000
467
668
(53
332)
Occupancy tax
58
000
61
324
3
324
Real property transfer tax
1 235
000
949
794
(285
206)
Total taxes
14 524 179
13 804
500
(719
679)
Licenses and permits:
Business licenses
465
000
497
497
32
497
Oil well licenses
1 470
000
1 224
038
(245
962)
Building permits
684
000
429
447
(254
553)
Other licenses and permits
154
000
85
310
(68
690)
Total licenses and
permits
2 773
000
2 236
292
(536
708)
` Fw-aes, forfeitures and
t penalties
185.000
125
698
(59
302)
Revenues from use of money
and property
908
500
767
233
(141
267)
Revenue from other agencies:
State
1 487
000
1 415
948
(71
052)
County
36o
000
208
263
(151
737)
` F(,,deral
16
526
16
526
Other
125
000
133
455
8
455
Total revenue <-
from other
agencies
1 972
000
1 774
192
(197
808)
Charges for current service
722
000
639
o64
(82
936)
Other revenue
18
000
41
427
23
427
Total revenue -
general fund
$21 102 6
$12 588 4o6
($.l 714 273)
See accompanying notes.
11
SPECIAL REVENUE F �&S
For The Year Ended J :ne 30 s 1975
Over
Estimated
Actual
(Under)
f
I
Revenue
Revenue
Estimated
Special gas tax fund:
State gas tax
$1 492
000
$'1 312
634
($179
366)
Interest income
8
000
35.310
27
310'
Total revenue -
special gas tax fund
1 500
000
1 347 944
(152
056)
Parks and recreation fund;
Subdivision license and
unit lot fees
790
000
562
366
(227
634)
Civic improvement fund:
Utility taxes
2 070
000
2 236
875
166
875
Interest income
20
000
18
611
(1
389)
Other revenue
19
092
19
092
Total revenue -civic
improvement fund
2 090
000
2 274
578
184
578
Sewer fund
Sewer permits
180
000
73
046
(106
954)
Interest income
65
000
93
999
28
999
Local assessment
i
60
000
52
454
(7
546)
Total revenue- - newer
fund
h
$305
000
$219
499
($85
501)
Continued
12
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUE -
ESTIMATED AND ACTUAL -
SPECIAL REVENUE FUNDS,
Continued
For The Year Ended June 30,
1975
Over
E�,imated
Actual
(Under)
Revenue
Revenue
Estimated
Planned local drainage fund:
Interest income
$75 000
$59
193
($15
807)
Local assessment
47r-000
308
236
(166
764)
Other
160
GOU
160
000
Total revenue -- planned
local drainage fund
550 000
527
429
(22
571)
Grant fund:
Grants
1 294 000
179
237
(1 114
763)
Revenue sharing fund:
Interest income
60 000
109
235
49
235
Federal revenue sharing
1 l00 000
1 084
060
(15
940)
Total revenue - revenue
sharing fund
l 160 000
1 193
295
33
295
Manpower grant funds
Grants
30 586
790
406
479
82.0
Parking meter fund:
Meter. collections
115,000
85
473
(29
527)
Traffic safety fund:
Vehicle code fines
380 '000
412
778
32
778
Total revenue -
special revenue Funds
,$18 494 586
$7 593 005
($_g081)
See accompanying notes,
13
CITY OF
HUNTINGTON BEACH
STATEMENT OF REVENUE, EXPENDITURES
AND
FUND BALANCES
-
DEBT
SERVICE FUNDS
For The Year
Ended June 30,
1975
1955 Water
1970 Park
Interest Bond Interest
And
And
Redemption
Redemption
Total
Fund
Fund
Revenue:
Property taxes
$497 450
$33 744
$463 706
Interest income
3 343
2 202
1 141
Total revenue
500 793
35 946
464 847
Expenditures:
Redemption of serial bonds
175 000
35 000
140 000
Interest on bonds
331 550
5 425
326 125
Fiscal agent's fees
586
106
480
Toi- ',', expenditures
507 136
A0 531
466 605
(Deficit) to fund balance
1%6 343)
(4 585)
(1 758)
Fund balances, July 1,_1974
30_893
66 061
(35 168)
Fund balances,
June 30, 1975
$24 , 0
$§L 4 L6
($336 2'6)
See accompanying notes:
M
14
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUE, EXPENDI':TRES AND FUND BALANCES
CAPITAL PROdEI FUNDS
For The Year Ended A e 30, 1975
1970
1955
Park Bond
Water Bond
Special Capital
Construction
Construction
Total
Outlay Fund
Fund
Fund
Revenue:
Interest income
$2 004
$2 004
Sale of property
1 04o
$1 040
Total revenue
1 011
2'oo4
1 o40
Expenditures:
Central Park
945
911.
34
Increase in fund balance
2 099
1 093
1 006
Fund balances, July 1, 1974
(30 596)
13 461
(121 367)
$77 310
Fund balances, June 30,`1975
$ZL 497)
$JL4-,�4
($120 362)
$77 310
See accompanying notes.
CITY OF HUNTINGTON BEACH
STATEMENT OF EXPENDITURES AND ENCUMBRANCES COMPARED
WITH APPROPRIATIONS - GENERAL FUND
For The Year Ended June 30, 1975
Expenditures
Total
Supplies
Expenditures
Original
Personal
And Other Fees
Capital
And
Appropriations
Unencumbered
Services
And Services
Outlay
Total
Encumbrances
Encumbrances
(Note 1D)
Balance
j General government:
City administration
$193 077
$123 601
$1
315
$317 993
$12
167
$330
160
$367 539
$37 379
Finance department
463 828
91 831
2
694
558 333
5
080
563
413
632 340
68 927
City attorney
216 202
36 873
2
003
255 078
287
255
365
284'540
29 175
Planning
402 432
112 793
10F
515 330
30
512
545
842
557 590
11 748
All other
277 113
2 191 083
16
081
2 484 277
2 334
2 486
611
2 242 106
(244 505)
1 552 652
2 556 161
22
198
4 131 oil
3v
380
4 181
391
4 084 115
(97 276)
Culture - recreation:
Library
508 820
261 948
6
09
776 877
88
988
865
865
982 086
116 221
Parks and recreation
1 135 293
413 928
22
670
1 571 891
23
299
1 595 190
1 619 748
24 558
i 644 113
675 876
28
779
2 348 L
112-287
2 461
055
2 6o1 834
140 779
Public safety:
Police
5 007 029
508 359
132
678
5 648 266
60
695
5 708
961
5 611 306
(97 655)
Fire
3 000 366
118 779
55
260
3 374 405
43
993
3 1118
398
3 489 838
71 440
Harbors and beaches
844 687
160 962
38
911
1 044 560
12
197
1 056
757
1 287 212
230 455
Building
635 357
44 596
27
552
707 505
707
505
726 425
18 920
Other
48 593
33 114
1
882
83 589
679
84
268
103 831
19 56
9 536 o32
1 065 810
256
483
10 858 325
117
564
10 975 889
11 218 612
242 723
Highway, sanitation and
waste removal:
Streets
1 120 656
1 139 614
7
282
2 267 552
16
797
2 284
349
2 528606
244 257
Engineering
717 816
63 243
2
799
783 858
193
i84
051
818 124
34 073
Other
535 208
513 423
13
094
1 061 725
30
569
1 092
294
1 237 908-
115 514
2 ,7� 3 680
1 716 280
23 175
4 113 135
47 559
4 160
694
4 584 638
421 944
Total
$1L 106 4U
$6 014 127
$330 63
$3j jjL 23g
$ z�„L20
$ZLU4 OP
$22 484 U2
1� 0 172
See accompanying notes.
16
15
D?M
CITY OF HUNTINGTON Bc;ACH
STATEMENT OF EXPENDITURES AND ENCUMBRANCES
COMPARED WITH_ APPROPRIATIONS - SPECIAL REVENUE FUNDS
For T1.a Year Ended June 30, 1975
Planned
Special
Parks And
Civic
Local
Revenue
Manpower
Gas Tax
Recreation
Improvement
Sewer
Drainage
Grant
Sharing
Grant
Total
Fund
Pund
Fund
Fund
Fund
Fund
Fund
Fund
Original appropriations (Note 1D)
$5 702 113
$1 061 000
$810 000
$1 629 248
$ 03 5 000
$550 000
$29 000
$1 317 865
Expenditures
5 246 743
450 273
83 702
1 274 244
357,611
844 559
185 551
1 217 244
$833 559
Encumbrances
2.85 289
55 324
101 315
20 216
7700
105
97 807
9 822
Total expenditures and
encumbrances
5 532 032
505 597
83 702
1 375 559
377 827
845 259
185 656
1-115 051
843 381
Unencumbered balance
$220 081
$555 403
$ 27 6 298
$251 689
($12 827)
($2 2 )
($1 6 6 )
$2 814
($84a 381)
See accompanying notes.
17
CITY OF HUNTINGTON BEACH
WATER
UTILITY FUND
STATEMENT OF INCOME — BUDGETED AND
ACTUAL
For The Year
Ended June
30, 1975
Overk
(Under)
Budget
Actual
Budget
Operating revenues:
Metered water sales
$2 475
000
$2 527-569
$52
569
Other water sales
74
000
58
085
(15
915)
2 549
000
2 585
654
36
654
Less, Operating expenses
2 270
317
2 652
867
(382
550)
Net operating income
(loss)
278
683
(67
213)
(345�896)
Add nonoperating income;
Interest inoome
85
500
70
265
(15
235)
Acreage fees
30
000
29
820
(180)
Tract fees
100
000
36
677
(63
323)
New service
100
000,
94
481
(5
519)
Other
68
500
76
979
8
479
384
000
308
222
(75_
778)
Less,, Nonoperating expenses;
Bond interest
102
0.00
106
242
4
242
Fiscal agent fees
1
500
303
(197)
Other
20
vJO
32
792
12
792
123
500
140
337
16
837
Net income
$2
$10
($4 8 11)
See accompanying notes.
18
CITY OV ri4NTINGTON BEACH
WATER UTILITY FUND
ANALYSIS OF CHANGES IN RETAINED EARNINGS
For The Year Ended June 30, 1975
Balance of retained earnings, July 1, 1974 $4 503 081
Add:.
Net income for the year ende June 30, 1975 100 672
Reduction in reserve for 1955 G. 0. bonds 35 000
Less transfers to general fund (42 550)
Balance of retained earnings,
June 30, 1975 $96 20
R
See accompanying notes.
19
� CITY OF HUNTINGTON BEACH
WATER UTILITY FUND
SCHEDULE OF OPERATING EXPENSES
-- BUDGETED
AND
ACTUAL
For The Year Ended
June 30,
1975
Under
4
(Over)
Budget
Actual
Bum dget
' Water source:
Purchase of water
$450
000
$603
474
($153
474)
Materials, supplies and service
9
900
38
607
(28
707)
Total water source
459
900
642
081
(182
181)
Wells and treatment plant:
Labor
46
800
43
007
3
793
Pump tax
300
000
294
921
5
079
Materials, supplies and service
117
700
139
925
(22�225)
Total wells and
treatment plant
464
500
477
853
(13
353)
Transmission and distribution:
Labor
188
g00
196
724
(7
824)
Materials, supplies and service
12
960
13
221
(261)
Total transmission and
distribution
201
860
209
945
(8
085)
Customer accounting:
Labor
72
000
76
191
(4
191)
Accounting
91
504
91
132
372
Uncoliecti'ble accounts
4
000
3
161
839
Total customer. accounting
167
504
170
484
(2
980)
Administration and general:
Labor
40
000
50
932
(10
932)
Leases
105
510
105
01i
499
Other
151
043
187
855
(36
812)
296_
553
343�798
(47
245)
Depreciation
400
0oo
420
448
(20
448)
p In-lieutax
280
000
388
258
(108
258)
Total operating expenses
$2 270 317
$2 6�2 867,
($82 0)
See accompanying notes,
20
r
CITY OF HUNTINGTON BEACH
WATER UTILITY FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
For he Year Ended June 30, 1975
Funds were provided by:
Net income
$100
672
Plus items not requirinp working
capital - depreciation
420
448
521
120
Funds were used for:
Additions property and equipment
580
086
1963 water revenue bond repayment
110
000
Transfer to general fund
42
550
732
636
Decrease in working capital
21
Changes in working capital are comprised of:,
Cash
(358
376)
Cash advanced to fiscal agent
5
364
Accounts receivable, net
(43
067)
Marketable securities
3.66
000
General payables
29
619
Payroll payables
(3
260)
P Other liabilities
300
Interest payable
(8
006)
Decrease in working capital
i
$211 516
See accompanying notes.
6 21
y_
CITY OF HUNTINGTON
BEACH
MEADOWLARK GOLF COURSE
FUND
STATEMENT OF INCOME
kLOSS)
AND RETAINED EARNINGS
(DEFICIT)
For The Year Ended June
30, 1975
Lease income
$51
339
Less, Depreciation
17
484
Net operating income
33
855
Less, Interest expense
110
000
Net income (loss) and retained
earnings (deficit)
t
($6 14)
f
h
r
See accompanying notes
22
t
CITY OF HUNTINGTON BEACH
MEADOWLARK GOLF COURSE FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
For The Year Ended June 30, 1975
Funds were applied to:
Net loss
$76
145
Less, Items not requiring_ working
capital - depreciation
17
484
58
661
Purchase of property and equipment
939
325
u.
997
986
Funds were provided by:
Contributed capital':
County of Orange (rote'7)
$600 000
a'
Revenue sharing fund
667 325 1 267
325
Increase in working capital
2339
Changes in working capital are comprised of;
Cash
354
339
Accounts receivable
25
000
Accrued interest payable
(110
000)
Increase in working ca-.`,al
$2
See accompanying notes.
23`
CITY OF HUNTINGTO'N BEACH
NOTES TO FINANCIAL STATEMENTS
June 30, 1975
1. Summary Of Accounting Policies:
A. Method Of Accounting:
The City, like most municipalities, uses a modified ace lial
basis of accounting under which expenditures are recorded
when incurred and revenues are generally recorded when
received.
B. General Fixed Assets:
The General Fixed Assets au,juired by the City prior to
July 1, 1973 are not recorded on the Citv's books. General
Fixed Assets, except municipal improvements other than
buildings, acquired since July 1, 1973 are recorded at cost
' on the City's books. General Fixed Assets are not
depreciated.
'r C. Water Utility Plant, Property And Equipment And
f Depreciation:
The accounts for the water utility plant include $18,731,164
of property and equipment, less $3,087,109 accumulated
depreciation. Of the total $18,731,164, $10,357,766
represents capital outlay at cost and $8,373,398 represents
an amount for assets contributed to the City through
June 30, 1968 by subdividers, at values estimated by City
personnel. Contributions by subdividers since June 30, 1968
are not recorded on the books of the City. Depreciation is
provided on the straight-line method over the estimated
useful lives of the asse'cs.
' D. Appropriations:
The City adopts a budget - nually which appropriates amounts
for each department or di ,lion. As of year-end the City
Council revises these appropriations. Amounts included in
! the financial statements represent original rather than
revised appropriations.
` E. Reserve For Encumbrances
The City records obligations in the form of purchase orders,
contracts and other commitments which are chargeable to an
appropriation and for which a part of the appropriation is
reserved. They cease to be encumbrances when the actual
f liability is incurred.
Continued
24
CITY OF HUNTINGTONBEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1975
1.. Summary Of Accounting Policies, Continued:
F. Special Assessments:
The City has numerous local improvement districts and
maintains a separate special assessment fund for each. The
City records the monies received and disbursed for the
construction of the i.aprovements for which the District was
created, and the receipt and disbursement of monies handled
for the payment of interest on and retirement of principal
amounts of the bonded indebtedness in the respective funds.
The City acts only as,a fiscal agent.
G. Federal Grants, Revenue Sharing, Etc.:
The City maintains restriced use funds and special revenue
funds to comply with requirements of state and federal
statutes stipulating that monies apportioned to the City
be spent only for certain desir-Y.wted functions. During
the fiscal year ended June 30, 1975, the City received
monies from the federal government under revenue sharing
which has been accounted for in a separate fend.
H. Pension Plan
City employees participate in the Public Employees'
Retirement System (administered by the State of California)
which plan covers substantially all employees. The total
pension expense recognized by the City for the fiscal year
ended June 30, 1975 was $1,084,000. The excess, if any, of
the actuarially computed value of vested benefits over the
total of the above pension fund is not ,available.
I. Vacation And Sick Leave:
The, City expenses vacations as they are taken rather than
► as vested._ The present vacation policy is that the vacations
E vest as earned with certain limitations. At June 30, 1975
the total vested vacation WLs approximately $825,000,
The City also expenses sick leave as taken rather than as
vested. At June 30, 1975 the total vested sick, leave was
approximately $322,000
Continued
25
CITY OF HUNTINGTON BEACH"
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1975
2. Cash:
At June 30, 1975 cash consisted of the following:
Active bank accounts ($510 872)
Time certificates of deposit 7 210 000
Temporary investments in
U.S. Government securities,
at cost, which approximates
market 1 210 000
Cash on hand 010
$7 912 138
3. Marketable Securities:
The Water Utility Fund purchased at a cost of $166,00,0, $285,000
of City of Huntington Beach 1963, 3h% Water Revenue Bonds,
maturing 1993• The bonds were purchased as a short -germ invest-
ment. The market value at June 30, 1975 was $156,750•
Continued
26
CITY OF HUNTINGTON
BEACH
NOTES
TO FINANCIA''• STATEMENTS',
Continued
June 30, 1975
4. Bonded Dw -b Not Natured:
Matured/
Balance
Retired
Balance
Original Not
Matured
'During
Not Matured
Amount
July 1,
1974-
June 30,
? Issue
Sold;
1974
1975
1975
General Obligation
Bonds,
1970.park bonds,
with interest
rates 5.5% to
6%. Maturing
annually on
March 1 in
varying amounts
with final
maturity in
1995
$6 o0o 000
$5 520 000
$140 000
$5 380 000
1955 water bonds
with interest
rates 2% to 3%,
maturing on
August 1, in
installments of
$35,000 to 1980
860 000
245 000
35 000
210 000
$6 860 T000
$ 5 000
$175�000
$5 590 000
Revenue Bonds:
1963 water revenue
bonds Series A,
3.25% to 3.5%
maturing annually
on November 1
in varying
amounts with
final maturity
in 1993
$ s 0
$3 160 000
$110 000
$ 050 000
The general obligation bond balance
of $5,590,000
represents a
future liability of
the City. The
$3,050;,000
water revenue bonds
do not represent e general liability of the City
of Huntington r°
Beach.
Continued
27
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1975
4. Bonded Debt Not Matured, Continued:
At June 30, 1975 there were $1,950,000 -^authorized but unissued
1963 water revenue bonds
Special assessment district bonds outstanding totaled $35,478.
See Note lF.
5. Long -Term Debt:
Amount due bank, including
interest ataneffective rate
of approximately 7;c%,
collateralized by assets
of approximately $630,000 $260�000
The City has entered into a. sale -lease back agreement with a
bank. This agreement is for a term of four years and is
deemed to be a financing arrangement. Annual payments are
$77,193. This represents a future general liability of
;;he City of Huntington Beach.
6. Long -Tara Leases Payable
Iv l Center $9 068 923
Cent,r<?,l Library 4 337 379
$
Civic Cer,'5er,
The City has entered into a noncancellable lease and sublease
agreement with the Huntington Leach Public Facilities Corporation
for the Huntington Beach Civic Center. The City has leased to
the Corpc.eation the civic center site for $350,000 ad'�'Znce
rental. Term of the lease is from January 15, 1972 to one week
after the termination of the sublease.
The Corporation has subleased the civic center site and
improvements to the City for. $854,900 annual rental.. The
sublease commenced July 1, 1974 for a term of 30 years or
until after all debts of the Corporation related to the
civic center have been discharged, whichever cosecs first
Continued
28
CITE' OF HUNTINGTON REACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1975
6. Long --Term Leases Payable, Continued:
Central Librarv:
The City has entered into a noncancellable lease and sublease
agreement with the Huntington :Beach Public Facilities Corporation
for the Central Library-. The City has leased the site to the
Corporation for $300,000 advance .rental. Term of the lease is
from September 1, 1P72 to one week after termination of the
sublease
The Corporation has subleased the library site and improvements
to the City for $399,000 annual rental. The sublease commenced
February 15, 1975 for a term of 30 years or until after all
debts of the Corporation related to the library have been
discharged, whichever comes first.
Civic Center And Central Library:
The City is to pay all taxes, insurance, administrative and
maintenance costs under the _leases. Title to site improvements
will pass to the City at the termination of the leases. The
leases are deemed to be financing arrangements with the related
costs of land and buildings (equivalent to the future rental
payments discounted at approximately 7;4%) being recorded in the
General Fixed Assets and the lease commitments being recorded
in general long-term debt. Advance rentals received by the
City are recorded as deferred rental income and are being
amortj,zed over the terms of the sublease in the Civic improve-
ment Fund.
7. Note Payable:
7% note payable, for purchase of
Meadowlark Golf Course $2,272 000
The City has entered into a purchase agreement for the Meadowlark
Golf Course for $3,200,000 with an initial down payment of
$928,000 and annual principal and interest payments as follows:
1976 $472 000
E 1977 2001 150 000
2001 2008 200 000
2009 115 703
Continued
29
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1975
T. Note Payable, Continued:
r.^
In connection with the above purchase, the City has leased the
operation of the golf course to an outside party for 34 years
with minimum lease income of $150,000 annualy through 2007 and
income based on gross revenues for the years 2008 and 2009.
The note payable i<g.collateralized by gross revenues, and does
not represent a general liability of the City. As part of the
initial payment of $928,000 the County of Orange contributed
$600,000 with the City's guarantee to use general funds of the
City, if necessary to insure that Meadowlark Golf Course will.
be maintained as open space.
8. Contracts Payable:
The City has water, sewer and drainage reimbursement agreements
which provide for reimbursement to developers of cost incurred
in constructing water, sewer and drainage facilities to the
extent fees are collected from users of the facilities. The
City follows the practice of recording the fees as a liability
as they are collected and. charges subsequent payments to
developers under the agreements to the liabiJ.ty account.
9. Adjustment To Set Up Abatements Applicar''Le To Prior
Years Expenditures:
Prior to July 1, 1974, the City of Huntington Beach recognized
reimbursements for gas tax fund projects from the state and
county agencies on a cash received basis. Beginning in 1975 the
City is recognizing a receivable for reimbursable contracts as
f expenditures are incurred based on the individual agreements.
Reimbursements totaling $932,350 have been recognized for
expenditures incurred prior to July 1, 1974. $528,800 of that
balance has been received by.the City. The remaining $403,570
is included in the accounts receivable balance in the Gas Tax
Fund.
Continued
30
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
June 30, 1975
10. Commitments And Contingencies
The City has entered into !ease agreements as follows:
(a) Water storage capacity in the San Joaquin Reservoir
for a term of 50 years commencing in 1967.
(b) Parking facilities from the Huntington Beach Parking
Authority commencing in 1969 for a term of 24.years
or after all of the 1968 revenue bonds of the
Authority are retired.
(c) Park site from Ocean View School. District commencing
Jude 1.9, 1974 for a, term of five years. The City
may cancel the lease at the end of any budgetary year.
If she City makes all lease payments during the five-
year period title to the property will pass to the
City.
The minimum annualrentalcommitment under the above leases
is as follows:
19'T6 $334 925
1977 329 925
1978 329 925
1979 265 050
19G0 265 050
Naive years
1981--1985 1 325 256
Five yeart
1986-1990 1 305 250
Five years
1991--1995 800 1.50
Hemsin0er 210 000
As of Jure 303 1973 the CitL, is defendant in a number of suits
arising in the normal course of business and covered by insurance.
In addition, to the above suit:Y there is a, class action suit
again6 the City in the amourt of $8,000,000 for which, according
to the Office of uhe City Attorneys settlement is being proposed
throu&�n thr payment of attorne:y's fees in the sum o,c" $300,000.
Continued
31
CITY OF HU'NTINGTON .BEACH
NOTES TO FINANCIAL TATEMEFTS, Continued
June 30, 1975
10. Commitments And Contingencies, Continued;
As a rosult of a police helicopter cash in August 1964, the
City has been named in two suit-- totaling $1, 750, 000 . Maximum
insurance coverage is $1,000,,A0. Outcome of the suits is not
known dt this time
i
52