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CITY OF HUNTINGTON BEACH, CALIFORNIA
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2003
WITH REPORT ON AUDIT BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
Prepared by the Finance Department
THIS PAGE INTENTIONALLY LEFT BLANK
INTRODUCTORY SECTION
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City of Huntington Beach
Comprehensive Annual Financial Report
Year Ended September 30, 2008
TABLE OF CONTENTS
INTRODUCTORY SECTION
Tableof Contents...................................................................................................................................... i-ii
Letter of Transmittal '""
CityOfficials................................................................................................................................................ vi
OrganizationalChart................................................................................................................................... vii
Certificate of Achievement in Excellence in Financial Reporting ""
1� FINANCIAL SECTION
IndependentAuditor's Report...................................................................................................................... 1-2
Management Discussion and Analysis........................................................................................................ 3-14
Basic Financial Statements:
Government-wide Financial Statements:
Statementof Net Assets.................................................................................................................... 17
Statement of Activities and Changes in Net Assets........................................................................... 18
Fund Financial Statements:
Balance Sheet— Governmental Funds .............................................................................................. 19
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets........... 20
Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds ...... 21-22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities........................................................................ 23
Statement of Net Assets— Proprietary Funds....................................................................................24
Statement of Revenues, Expenses and Changes in Fund Net Assets — Proprietary Funds.............. 25
Statement of Cash Flows— Proprietary Funds................................................................................... 26
Statement of Fiduciary Fund Net Assets............................................................................................ 27
Statement of Changes in Fiduciary Fund Net Assets—Trust Funds.................................................. 27
Notes to Financial Statements ..............................................................................................................28-76
Required Supplemental Information:
BudgetaryInformation........................................................................................................................ 80
Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget
AndActual — General Fund............................................................................................................. 81
Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget
AndActual —Grants Fund............................................................................................................... 82
Schedule of Funding Progress (Normal Retirement Plan, Supplemental Retirement Plan,
And Other Post Employment Benefits) ........................................................................................... 83
i
FINANCIAL SECTION (Continued)
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet—Other Governmental Funds.................................................................. 87-90
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
OtherGovernmental Funds ............................................................................................................ 91-94
Schedule of Revenues, Expenditures, and Changes in Fund Balances—
Budget and Actual— Other Governmental Funds ........................................................................... 95-104
Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget
And Actual — Redevelopment Agency Capital Projects and Debt Service...................................... 105
Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget
And Actual — Low Income Housing Fund........................................................................................ 108
Combining Statement of Net Assets—Other Enterprise Funds......................................................... 109
Combining Statement of Revenues, Expenses, and Changes in Net Assets—
OtherEnterprise Funds................................................................................................................... 110
Combining Statement of Cash Flows— Other Enterprise Funds........................................................ 111
Combining Statement of Fiduciary Fund Net Assets.......................................................................... 114
Statement of Changes in Fiduciary Assets and Liabilities.................................................................. 115-116
STATISTICAL SECTION
Net Assets by Component— Last Seven Fiscal Years................................................................................ 119-120
Change in Net Assets- Last Seven Fiscal Years......................................................................................... 121-122
Fund Balances—Governmental Funds — Last Ten Fiscal Years ................................................................ 123
Changes in Fund Balances— Last Ten Fiscal Years................................................................................... 125-126
Assessed and Actual Valuation of All Taxable Property (Excluding Redevelopment Agency) -
LastTen Fiscal Years .............................................................................................................................. 127
Property Tax Rates—All Direct and Overlapping Government Tax Rate 04-001
Largest Area in City— Last Ten Fiscal Years........................................................................................... 127
Property Tax Levies and Collections— Last Ten Fiscal Years .................................................................... 128
Ratios of Outstanding Debt by Type — Last Ten Fiscal Years..................................................................... 129
Top Ten Property Tax Payers — Current Year and Six Years Ago.............................................................. 130
Legal Debt Margin — Last Ten Fiscal Years................................................................................................ 131
Principal and Private Employers— Current Year and Two Years Ago......................................................... 131
Full-Time Budgeted City Employees by Program/Function — Last Six Fiscal Years.................................... 132
Operating Indicators by Function/Activity— Last Three Fiscal Years.......................................................... 133
Capital Assets Statistics by Function/Activity.............................................................................................. 133
Statement of Direct and Overlapping Bonded Debt .................................................................................... 134
ii
CITY OF HUNTINGTON BEACH
March 17, 2009
To the Honorable Mayor and City Council
As part of the City of Huntington Beach's ongoing commitment to transparent management
of its finances, the City is presenting its Comprehensive Annual Financial Report (CAFR).
This report outlines in detail the financial condition of all City funds through September 30,
2008.
As required by City Charter, and to ensure the reliability of the information contained within
this report, the City of Huntington Beach contracted with the independent auditing firm Diehl,
Evans & Company, LLP. The goal of the audit was to provide reasonable assurance that
the City's financial statements are free from material misstatement. After examining, on a
test basis, data contained within the CAFR, assessing the accounting principles used, as
well as significant estimates made by management, Diehl, Evans &Company, LLP granted
the City an unqualified (clean) opinion for the fiscal year ending September 30, 2008. The
auditor's opinion can be found in the Financial Section of this report. Management
assumes full responsibility for the completeness and accuracy of the information presented
in this document. This transmittal letter is designed to complement and should be read in
conjunction with the Management's Discussion and Analysis.
In addition to the City's financial information, this report includes financial reports for those
separate legal entities whose activities the City controls. These entities are:
• The Redevelopment Agency of the City of Huntington Beach
■ The Huntington Beach Public Financing Authority
■ Various community facilities districts
Additional Financial information for the Redevelopment Agency can be found in the
Agency's component unit (stand-alone) report.
CITY OF HUNTINGTON BEACH AND LOCAL ECONOMY
The City of Huntington Beach is located on the coast of Orange County, 35 miles south of
Los Angeles and 90 miles north of San Diego. With a population of just over 200,000
residents, it is known as Surf City due to its abundance of beaches, sunny, warm
Mediterranean climate, and casual lifestyle. With over eight miles of coastline to boast of,
Huntington Beach plays host to over eleven million visitors annually. Listed among the
nation's safest cities for decades, Huntington Beach has often been ranked among the Top
Ten Safest Cities by City Crime Rankings.
Founded in the late 1880's, Huntington Beach was incorporated as a Charter City in 1909.
Huntington Beach has a City Council/City Administrator form of government wherein seven
hi
City Council members are elected to four-year terms, and the Mayor is filled on a rotating
basis from the incumbent Council members.
The City of Huntington Beach is one of the leading commercial and industrial centers in
Southern California. As the third largest city in Orange County, more than 119,300 people
are currently employed by over 14,400 businesses and governmental entities in the City.
Huntington Beach businesses include aerospace and high technology, petroleum and
petroleum support, manufacturing, computer hardware and software, financial and business
services, automobile services, machine shop services, precision instruments, retailers and
surf apparel, just to name a few.
CASH MANAGEMENT POLICIES AND PRACTICES
The City operates on a fiscal year basis, beginning October 1 st and ending September 30tn
The budget is prepared under the supervision of the City Administrator and transmitted to
the City Council for deliberation sixty days prior to the end of the fiscal year. Per the City's
charter, the City Council must adopt the annual budget by September 30tn and may amend it
or revise it at any time at a properly noticed meeting. Budgetary control is at the department
level within each fund and a Department Head, with the Director of Finance's approval, may
transfer funds within like categories (salaries and benefits, operating, and capital
expenditures) of the same department.
Surplus cash is invested by the elected City Treasurer, in investments allowed by the City's
investment policy. The investment policy is adopted annually by the City Council after
approval by the Investment Advisory Board. It outlines guidelines to: meet the daily cash
flow needs of the City, maximize the efficiency of the City's cash management system, and
identifies prudent investment vehicles for the City's cash balances.
The rate of return earned for the period ending September 30, 2008 was 4.06%. The City
Treasurer, as required by California Government Code 53601, has prepared an annual
statement of investment policy which allows for the City to meet current obligations while
earning a market rate of return. Further information regarding the City's cash and
investments can be found in Note 2.
LONG-TERM FINANCIAL PLANNING
In 2006, the City Council adopted its Strategic Plan which outlines five goals: Engaging the
Community, Financial, City Services, Land Use & Economic Development, and
Infrastructure. As part of the Financial strategic goal, the City of Huntington Beach
completed and implemented a Long-Term Financial Plan. This plan enables the City to
forecast cause and effect relationships for large financial decisions such as employee labor
contracts, capital projects, service enhancements, as well as revenue fluctuations due to the
weakening economy or state takeaways.
The City's Strategic Plan drives budgetary decisions and the day-to-day operations of the
City by ensuring that the City is consistently working to achieve the goals outlined by the City
Council.
PENSION AND OTHER POSTEMPLOYMENT BENEFITS
The City of Huntington Beach contracts with the California Public Employees' Retirement
System (CaIPERS) to provide retirement benefits to all permanent employees. In addition,
the City maintains a supplemental retirement plan for employees hired before January 1,
iv
1998 (exact dates are different for various associations), and other post-retirement medical
benefits available to retirees. Detailed information of these plans can be found in Notes 6, 7,
and 8 respectively.
Percent Funded Unfunded Liability (in millions)
Retirement - Normal Plan 89% $79.3
Retirement - Supplemental 43% $30.1
Post-Employment Benefits 37% $14.7
During fiscal year 2007/08, the City implemented Government Accounting Standards Board
(GASB) Statement 45. This statement required the City to contribute additional amounts
towards post-retirement liabilities than in previous years. These amounts were included in
the 2007/08 budget and expended throughout the year. The City relies on actuarially sound
funding plans to pay down unfunded liabilities. These actuarial studies are conducted by
both CalPERS and independent actuaries.
RISK MANAGEMENT
The City is self-insured for both workers compensation and liability insurance, with both
programs recorded in the General Fund. For large claims,the City relies on its membership
in the Big Independent Cities Excess Insurance Pool (BICEP). Further information on the
City's risk management program can be found in Note 9 of the financial statements.
AWARDS AND ACKNOWLEDGEMENTS
Last year, the City of Huntington Beach was once again the honored recipient of the
"Certificate of Achievement for Excellence in Financial Reporting" award bestowed by the
Governmental Finance Officers Association (GFOA)of the United States and Canada. This
was the twentieth consecutive year the City has received this prestigious award. Receipt of
the award requires government entities to publish an easily readable and efficiently
organized Comprehensive Annual Financial Report, conforming to program, accounting, and
legal standards.
The Certificate of Achievement earned for fiscal year ending September 30, 2007, is valid for
one year only. The City believes that this Comprehensive Annual Financial Report
continues to conform to the Certificate of Achievement Program requirements and will be
submitted to GFOA for their consideration for another award.
I wish to thank the City Council and City Departments for their continued diligence in their
role as fiscal stewards for the City of Huntington Beach. Specifically, I would also like to
thank Robert Sedlak, Dahle Bulosan, Josh Brooks, Carrie Gonzales, Jennifer Lampman,
and Michael Solorza of the Finance Department who prepared this report.
Dan T. Villella, CPA
Director of Finance
v
City of Huntington Beach
City Council 2007/2008
Keith Bohr, Mayor
Cathy Green, Mayor Pro Tern
Joe Carchio, Councilmember
Gil Coerper, Councilmember
Devin Dwyer, Councilmember
Cathy Green, Councilmember
Don Hansen, Councilmember
Jill Hardy, Councilmember
Executive Team
Fred A. Wilson, City Administrator
Paul Emery, Deputy City Administrator
Robert Hall, Deputy City Administrator
Laurie E. Payne, Community Relations Officer
Elected Department Heads
Joan L. Flynn, City Clerk
Shari L. Freidenrich, City Treasurer
Jennifer M. McGrath, City Attorney
Department Directors
Stephanie Beverage, Library Services
Michele Carr, Human Resources
Ross D. Cranmer, Building & Safety
Jim B. Engle, Community Services
Scott Hess, Planning
Travis Hopkins, Public Works
Jack Marshall, Information Services
Chief Duane S. Olson, Fire
Stanley Smalewitz, Economic Development
Chief Kenneth W. Small, Police
Dan T. Villella, Finance
vi
CITY OF HUNTINGTON BEACH
THE PEOPLE
CITY CLERK CITY COUNCIL CITY CITY
Mayor TREASURER ATTORNEY
Administration Mayor Fro-Tem Administration
Public Support City Council Members i Investments Litigation
Records Cashiering
Management Collections Advisory
Disbursements
CITY
Elections ADMINISTRATOR
.FIRE POLICE
Fire Uniform
Administration Division
Fire Investigation
Prevention Division
Enter enc Administrative
9 Y
Response Operations
DEPUTY CITY DEPUTY CITY
ADMINISTRATOR ADMINISTRATOR
BUILDING& ECONOMIC PLANNING PUBLIC COMMUNITY FINANCE HUMAN INFORMATION LIBRARY
SAFETY DEVELOPMENT WORKS SERVICES RESOURCES SERVICES SERVICES
Permit& Economic Children's 1
Plan Check Development/ Planning Engineering Beach Operations Accounting R9 k Systems Branch 1 Media
Services Redevelopment Services Mana ement Services
Code Enforcemen
Ins lion Housin Bud et& Adult/Technical
Sery es Services Neighborhood Utilities Marine Safety Research Labor Communications Services
Prevention
Recreation,
Maintenance v Benefits&
Operations Human& Central Services Training Operations
Cultural Services
Facilities. Recruitment&
Transportation Concessions& Fiscal Services Retention
Development
General Services
Vii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Huntington Beach
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, ')001
A Certificate of Achievement for Excellence in Financial
Reporting is presented bV the Government Finance Officers
Association of the United States and Canacki to
`_OFelllllnellt 11111ts and public employee retirement
wStellls vvhose comprehensive alllllial finanncial
reports(C_'AFRs)achieve the highest
Standards Ill 20-,7er111Inent acconlltln$
and financial reportill;g.
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Executive Director
viii
FINANCIAL SECTION
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS
MIC'.HAEL.R.LUDIN.CPA
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W.SPRAKER,CPA
NITIN P.PATEL,CPA
ROBERT J.CALLANAN.CPA
5 CORPORATE PARK,SUITE 100 *PHI LIP H.HOLTKAMP,CPA
°THOMAS M.PERLOWSKI,CPA
IRVINE,CALIFORNIA 92 60 6-5 1 6 5 *HARVEY J.SCHROEDER,CPA
(949)399-0600.FAX(949)399-0610 KENNETH It AMES,CPA
W WW.dieh1eyans.coin *WILLIAM C.PINT2,CPA
"A PROPESSIONAI,CORPORATION
February 25, 2009
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and
Members of City Council
City of Huntington Beach
Huntington, California
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City of
Huntington Beach, as of and for the year ended September 30, 2008, which collectively comprise the
City's basic financial statements as listed in the table of contents. The financial statements are the
responsibility of the City of Huntington Beach's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Huntington Beach, as of
September 30, 2008 and the respective changes in financial position and cash flows, where applicable,
thereof for the year then ended in conformity with accounting principles generally accepted in the
United States of America.
- 1 -
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W.VALLEY PARKWAY,SUITE 330
CARLSBAD.CALIFORNIA 92008-2389 ESCONDIDO,CALIFORNIA 92025-2598
(760)729-2343*FAX(760)729-2234 (760)741-3141 e FAX(760)741-9890
As described in Note 8 to the financial statements, the City adopted the provisions of GASB Statement
No. 45, "Accounting and T,nancial Reporting by Tmployers for Postemployment Benefits Other Than
Pensions,"in 2008.
In accordance with Government Auditing Standards, we have also issued our report dated
February 25, 2009 on our consideration of the City of Huntington Beach's internal control over
financial reporting and our tests of its compliance with certain provisions of laws; regulations,
contracts and grant agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing;Standards and
should be considered in assessing the results of our audit.
The management's discussion and analysis and the other required supplementary information
identified in the accompanying table of contents are not a required part of the basic financial
statements but are supplementary information required by the accounting principles generally accepted
in the United States of America. We have applied certain limited procedures to the management's
discussion and analysis, the California Public Employees Retirement System's Schedule of Funding
Progress, and the Other Post Employment Benefits - Medical Retirement Schedule of Funding
Progress, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of this required supplementary information. However, we did not audit
the management's discussion and analysis, the California Public Employees Retirement System's
Schedule of Funding Progress, and the Other Post Employment Benefits - Medical Retirement
Schedule of Funding Progress, and we express no opinions on them. The budgetary comparison
schedules and related note have been subjected to the auditing procedures applied in the audit of the
basic financial statement and, in our opinion are fairly stated in all material respects in relation to the
basic financial statements taken as a whole
Our audit was conducted for the purpose of forming opinions on. the financial statements that
collectively comprise the City of .Huntington Beach's basic financial statements. The introductory
section, combining and individual other fund financial statements, and statistical section are presented
for purposes of additional analysis and are not a required part of the basic financial statements. The
combining and individual other fund financial statements and capital assets schedules have been
subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion are fairly stated in all material respects in relation to the basic financial statements taken as a
whole. The introductory section and statistical section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion on them.
- 2 -
V City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
As management of the City of Huntington Beach, we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City of
Huntington Beach for the fiscal year ended September 30, 2008. We encourage readers to
consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal, which can be found on pages iii-vii of this report.
Financial Highlights
Below is a summary of the City's government-wide financial information (in thousands):
Total Governmental and Business Activities
mount ercent
September 30, September 30, Increase Increase
2008 2007 (Decrease) (Decrease)
Assets $ 1,046,598 $ 1,030,304 $ 16,294 1.6%
Liabilities 211,163 202,787 8,376 4.1%
Total Net Assets 835,435 827,517 7,918 1.0%
Unrestricted Net Assets 93,319 113,655 (20,336) -17.9%
Long-Term Obligations 141,662 146,490 (4,828) -3.3%
Program Revenues 130,119 115,215 14,904 12.9%
Taxes 146,232 145,232 1,000 0.7%
Other General Revenues 19,269 29,879 (10,610) -35.5%
Expenses 287,702 256,119 31,583 12.3%
• The total assets of the City of Huntington Beach exceeded its liabilities at the close of
the most recent fiscal year by $835,435,000. Of this amount, $93,319,000 may be
used to meet the City's ongoing obligations to citizens and creditors. Net assets
increased $7,918,000 or 1.0%. This increase is due to in large part to investments in
capitalized infrastructure. Unrestricted net assets decreased by $15,760,000 or
13.9%.
• Long-term obligations decreased by $4,828,000 or 3.3%.
• Program revenues increased by $14,904,000 or 12.9% due to developer
contributions and other post employment benefit contributions in the current fiscal
year. Taxes increased $1,000,000 or 0.7%. Expenses increased $31,583,000 or
12.3%
Overview of the Financial Statements
This discussion and analysis serve as an introduction to the City of Huntington Beach basic
financial statements. The City of Huntington Beach's basic financial statements comprise
three components: 1) government-wide financial statements, 2) fund financial statements,
and 3) notes to the financial statements. This report also contains certain other
supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City's financial condition and are prepared similarly to those in the private
sector.
The statement of net assets presents information on all of the City's assets and liabilities,
with the difference between the two reported as net assets. Over time, continued increases
See Independent Auditors'Report and Notes to the Financial Statements
3
City of Huntington Beach
V Management's Discussion and Analysis
For the Year Ended September 30, 2008
or decreases in net assets may indicate whether the City's financial condition is improving or
deteriorating.
The statement of activities presents information on how the City's net assets changed during
the most recent fiscal year. These changes are reported on the accrual basis (when the
economic event occurs), not when the cash is received or paid.
The government-wide financial statements separate functions that are primarily supported
by taxes and intergovernmental revenues (governmental activities) from functions that are
supported by user fees (business activities). Governmental activities include public safety,
public works, general government, and community-related activities. Business activities
include the Water, Sewer, Refuse, Emerald Cove Housing, Emergency Fire Medical,
Hazmat Service, and Ocean View Estates.
The government-wide financial statements include the City and all of its component units
that are legally separate but whose activities entirely support the City of Huntington Beach.
These entities are, the Redevelopment Agency of the City of Huntington Beach, the
Huntington Beach Public Financing Authority, and various assessment districts described in
Note 1 to the financial statements.
The government-wide financial statements can be found on pages 17-18 of this report.
Fund Financial Statements
The City separates financial activities into funds to maintain control over resources that have
been legally separated. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for the same functions reported in governmental
activities in the government-wide financial statements. However, the focus in the
governmental fund section of these financial statements is on near-term resource inflows
and outflows available for spending, as well as balances of resources available for spending
at the end of the fiscal year.
It is useful to compare information presented for the governmental funds to information
presented for governmental activities in the government-wide financial statements. The
reconciliation indicates to the reader the differences in financial reporting between the
governmental activities section and the governmental funds section.
The City maintains 24 individual governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenue,
expenditures, and changes in fund balances for the General Fund, Grants Special Revenue
Fund, Redevelopment Agency Debt Service Fund, Redevelopment Agency Capital Projects
Fund, and Low-Income Housing Capital Projects Fund all of which are considered to be
major funds. Data from the other 19 funds are combined into a single, aggregated
See Independent Auditors'Report and Notes to the Financial Statements
4
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
presentation. Individual fund data for each of these other governmental funds is provided in
a combining statement elsewhere in this report.
The City provides an annual appropriated budget for its governmental funds. Budgetary
comparison schedules on pages 79-80 and 93-104 demonstrate compliance.
The basic governmental fund financial statements can be found on pages 19-22 of this
report.
Proprietary Funds
Proprietary funds or enterprise funds are used to account for the same activities as the
business-type activities in the government-wide financial statements. The City uses
enterprise funds to account for its Water, Sewer, Refuse, Emerald Cove Housing,
Emergency Fire Medical, Hazmat Service, and Ocean View Estates activities. The
Emergency Fire Medical Fund and Ocean View Estates Fund were closed and the
remaining funds were transferred to the General Fund in the current fiscal year.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statement provides
information for Water, Sewer Service, and Refuse Funds, which are considered to be major
funds of the City. The remaining proprietary funds noted above are combined into a single,
aggregated presentation.
The basic proprietary fund financial statements can be found on pages 24-26 of this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement
because the resources of those funds are not available to support the City of Huntington
Beach's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statements can be found on page 27 of this report.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial
statements can be found on pages 28-74 of this report.
Other information
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's progress in
funding its obligation to provide pension benefits to its employees and General Fund budget
to actual comparisons. Required supplementary information can be found on pages 76-81
of this report.
See Independent Auditors'Report and Notes to the Financial Statements
5
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
The combining statements referred to earlier in connection with other governmental funds is
presented immediately following the required supplementary information on pensions.
Combining and individual fund statements and schedules can be found on page 83-90 of
this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve, over time, as a useful indicator of a government's
financial position. Below is a summary schedule of the City's net assets at September 30,
2008 (in thousands):
Amount Percent
September 30, September 30, Increase Increase
Governmental Activities 2008 2007 (Decrease) (Decrease)
Current and Other Assets $ 192,243 $ 181,577 $ 10,666 5.9%
Capital Assets 637,997 633,421 4,576 0.7%
Total Assets 830,240 814,998 15,242 1.9%
Current Liabilities 63,267 50,301 12,966 25.8%
Long-Term Liabilities 140,578 145,422 (4,844) -3.3%
Total Liabilities 203,845 195,723 8,122 4.1%
Net Assets:
Invested in Capital Assets, Net of Related Debt 521,654 486,901 34,753 7.1%
Restricted 69,126 73,541 (4,415) -6.0%
Unrestricted 35,615 58,833 (23,218) -39.5%
Total Net Assets $ 626,395 $ 619,275 $ 7,120 1.1%
Amount Percent
September 30, September 30, Increase Increase
Business Activities 2008 2007 (Decrease) (Decrease)
Current and Other Assets $ 97,678 $ 95,420 $ 2,258 2.4%
Capital Assets 118,680 119,886 (1,206) -1.0%
Total Assets 216,358 215,306 1,052 0.50/0
Current Liabilities 6,234 5,996 238 4.0%
Long-Term Obligations 1,084 1,068 16 1.5%
Total Liabilities 7,318 7,064 254 3.6%
Net Assets:
Invested in Capital Assets, Net of Related Debt 118,671 119,874 (1,203) -1.0%
Restricted 32,665 33,546 (881) -2.6%
Unrestricted 57,704 54,822 2,882 5.3%
Total Net Assets $ 209,040 $ 208,242 $ 798 0.4%
The largest portion of the City's net assets reflects investment in capital assets (e.g., land,
buildings, machinery, equipment, and infrastructure); less any related debt used to acquire
those assets that is still outstanding. The City uses capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the
City's investment in its capital assets is reported net of related debt, the resources needed to
repay this debt must be provided from other sources, since capital assets themselves cannot
be used to liquidate these liabilities. An additional portion of the City's net assets is subject
to external (legally imposed or statutory) restrictions ($69,126,000 for governmental
activities, and $32,665,000 for business activities). These amounts represent 11.0% and
15.6% of net assets for governmental activities and business activities respectively. The
unrestricted assets ($35,615,000 for governmental activities and $57,704,000 for business
activities) represent 5.7% and 27.6%of net assets for governmental activities.and business
See Independent Auditors'Report and Notes to the Financial Statements
6
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
activities respectively. A condensed summary of governmental activities (in thousands)
follows:
Governmental Activities
Amount Percent
September 30, September 30, Increase Increase
Revenues: 2008 2007 Decrease Decrease
Program Revenues:
Charges for Current Services $ 43,509 $ 44,672 $ (1,163) -2.6%
Operating Grants and Contributions 7,684 1,996 5,688 285.0%
Capital Grants and Contributions 14,284 5,154 9,130 177.1%
Total Program Revenues 65,477 51,822 13,655 26.3%
General Revenues:
Property Taxes 84,016 79,369 4,647 5.9%
Sales Taxes 25,560 30,608 (5,048) -16.5%
Utility Taxes 21,591 21,479 112 0.5%
Other Taxes 15,065 13,776 1,289 9.4%
Use of Money and Property 5,714 7,895 (2,181) -27.6%
From Other Agencies 6,899 12,689 (5,790) -45.6%
Participation Payments - 1,564 (1,564) -100.0%
Other 2,332 2,696 (364) -13.5%
Total General Revenues 161,177 170,076 (8,899) -5.2%
Total Revenues 226,654 221,898 4,756 2.1%
Expenses:
City Council 295 287 8 2.8%
City Administrator 1,652 1,442 210 14.6%
City Treasurer 1,408 1,088 320 29.4%
City Attorney 2,914 2,534 380 15.0%
City Clerk 1,020 950 70 7.4%
Finance 4,944 4,454 490 11.0%
Human Resources 4,725 4,202 523 12.4%
Planning 3,881 3,098 783 25.3%
Building 5,747 4,899 848 17.3%
Fire 27,299 27,247 52 0.2%
Information Systems 7,311 6,591 720 10.9%
Police 58,378 56,988 1,390 2.4%
Economic Development 18,031 9,209 8,822 95.8%
Community Services 18,565 16,482 2,083 12.6%
Library Services 5,607 5,586 21 0.4%
Public Works 31,246 34,581 (3,335) -9.6%
Non-Departmental 30,814 15,131 15,683 103.6%
Interest on Long-Term Debt 5,291 5,875 (584) -9.9%
Total Expenses 229,128 200,644 28,484 14.2%
Change in Net Assets Before Transfers (2,474) 21,254
Transfers 9,594 491
Change in Net Assets After Transfers 7,120 21,745
Net Assets-Beginning of Year 619,275 597,530
Net Assets-End of Year $ 626,395 $ 619,275
The cost of all governmental activities this year was $229,128,000. However, as shown in
the Statement of Activities, the amount that the taxpayers ultimately financed for these
activities was only $163,651,000, because costs of $43,509,000 were paid by those who
directly benefited from the programs, or by other governments and organizations that
subsidized certain programs with operating grants and contributions of $7,684,000, and
capital grants and contributions of$14,284,000. Overall, the City's governmental program
revenues were $65,477,000. The City paid for the remaining "public benefit" portion of
governmental activities with $161,177,000 in taxes and general revenue (some of which
could only be used for certain programs) and with other revenues, such as interest and
See Independent Auditors'Report and Notes to the Financial Statements
7
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 200E
general entitlements. Capital Grants and Contributions have increased by $9,130,000 or
177.1% due to other post employment benefit contributions in the current fiscal year.
Total resources available during the year to finance governmental operations were
$835,435,000 consisting of net assets at October 1, 2007, of $619,275,000, program
revenues of$65,477,000, general revenues of$161,177,000, and transfers of$9,594,000.
Total expenses for governmental activities during the year were $229,128,000, thus, net
assets were increased by$7,120,000, to$626,395,000. A condensed summary of business
activities (in thousands) follows:
Business Activities
Amount Percent
September 30, September 30, Increase Increase
2008 2007 Decrease Decrease
Program Revenues:
Charges for Current Services $ 63,001 $ 56,294 $ 6,707 11.9%
Capital Grants and Contributions 1,641 7,099 (5,458) -76.9%
Total Program Revenues 64,642 63,393 1,249 2.0%
Use of Money and Property 4,324 5,035 (711) -14.1%
Total Revenues 68,966 68,428 538 0.8%
Expenses:
Water Utility 32,701 32,606 95 0.3%
Emerald Cove Housing 893 936 (43) -4.6%
Emergency Fire Medical 6,933 5,347 1,586 29.7%
Refuse Collection 10,561 10,542 19 0.2%
Sewer Service 7,120 5,766 1,354 23.5%
Hazmat Service 249 194 55 28.4%
Ocean View Estates 117 84 33 39.3%
Total Expenses 58,574 55,475 3,099 5.6%
Increase in Net Assets Before Transfers 10,392 12,953
Transfers (9,594) (491)
Net Assets-Beginning of Year 208,242 195,780
Net Assets-End of Year $ 209,040 $ 208,242
The City's net assets from business activities increased by $10,392,000 before transfers.
The largest reasons for this increase was operating income of $4,427,000, capital
contributions for the Water Master Plan of$1,641,000 and interest income of$4,324,000.
The cost of all Proprietary (Business Type)activities this year was $58,574,000. As shown
in the Statement of Activities and Changes in Net Assets, the amount paid by users of the
systems was$63,001,000, capital grants and contributions were $1,641,000,other revenue
was $4,324,000, and transfers were$9,594,000. Beginning net assets were$208,242,000
and ending net assets were $209,040,000. Of the ending net asset amount, $118,671,000,
or 56.8%, was invested in capital assets, $32,665,000 or 15.6% was restricted for
expenditures for the Water Master Plan, and $57,704,000, or 27.6% was unrestricted.
The City's programs for governmental activities include General Government, Fire, Police,
Public Works, Redevelopment, Community Services, and Library. Business type activities
include the Water, Sewer, Refuse, FireMed, Hazmat Service, and Ocean View Estates. A
listing of each program's revenues and expenses for the current year is presented below(in
thousands):
See Independent Auditors'Report and Notes to the Financial Statements
8
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
2007-2008 2006-2007
un e y Funded by
Taxes and Other Taxes and
Less Program General Other General
Governmental Activities: Expenses Revenues Revenues Revenues
City Council $ 295 $ (103) $ 192 $ 188
City Administrator 1,652 (404) 1,248 1,050
City Treasurer 1,408 (720) 688 390
City Attorney 2,914 (47) 2,867 2,488
City Clerk 1,020 (168) 852 740
Finance 4,944 (1,354) 3,590 3,142
Human Resources 4,725 (1,391) 3,334 2,855
Planning 3,881 (1,987) 1,894 (1,125)
Building 5,747 (4,582) 1,165 (551)
Fire 27,299 (2,890) 24,409 25,440
Information Systems 7,311 (697) 6,614 5,916
Police 58,378 (5,664) 52,714 51,976
Economic Development 18,031 (4,669) 13,362 5,191
Community Services 18,565 (16,152) 2,413 58
Library Services 5,607 (946) 4,661 4,496
Public Works 31,246 (13,123) 18,123 25,794
Non-Departmental 30,814 (10,580) 20,234 14,899
Interest on Long-Term Debt 5,291 - 5,291 5,875
Total Governmental Activities $ 229,128 $ (65,477) $ 163,651 $ 148,822
Business Activities
Water Utility 32,701 (35,751) (3,050) (5,356)
Emerald Cove Housing 893 (1,180) (287) (101)
Emergency Fire Medical 6,933 (6,762) 171 (721)
Refuse Collection 10,561 (10,521) 40 (8)
Sewer Service 7,120 (9,906) (2,786) (1,476)
Hazmat Service 249 (185) 64 (16)
Ocean View Estates 117 (337) (220) (240)
Total Business Activities $ 58,574 $ (64,642) $ (6,068) $ (7,918)
Financial Analysis of the City's Major Governmental Funds
Below is an analysis of the City's major governmental fund activities for the year (in
thousands):
GOVERNMENTALFUNDS
Amount Percent
September 30, September 30, Increase Increase
2008 2007 Decrease Decrease
Total Fund Equity:
General Fund $ 44,443 $ 43,696 $ 747 1.7%
Redevelopment Agency Capital Projects 15,663 21,757 (6,094) -28.0%
Redevelopment Agency Debt Service 3,655 1,380 2,275 164.9%
Low-Income Housing Fund 8,197 12,666 (4,469) -35.3%
Grants Special Revenue Fund 4,411 7,387 (2,976) -40.3%
Total Fund Equity $ 76,369 $ 86,886 $ (10,517) -12.1%
Unreserved Fund Equity:
General Fund $ 33,476 33,017 $ 459 1.4%
Redevelopment Agency Capital Projects 10,221 14,505 (4,284) -29.5%
Redevelopment Agency Debt Service 1,246 1,380 (134) -9.7%
Total Unreserved Fund Equity $ 44,943 $ 48,902 $ (3,959) -8.1%
See Independent Auditors'Report and Notes to the Financial Statements
9
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
The General fund balance increased by $747,000. Key factors in this growth were the
transfer and closing of several funds into the General Fund. These funds include the
FireMed, Ocean View Estates, Jail Program, and the Cultural Affairs fund.
The Redevelopment Agency Capital Projects Fund Balance and Low-Income Housing Fund
decreased primarily due to completion of anticipated projects.
The Redevelopment Agency Debt Service Fund Balance increased by$2,275,000 primarily
due to increased tax increment revenue.
The Grant Special Revenue Fund Balance decreased by $2,976,000 primarily due to
decreased grant revenues and increased grant capital outlay.
Financial Analysis of the City's Major Proprietary Funds
Below is an analysis of the fund equity of the City's proprietary funds (in thousands):
Enterprise Funds
Amount Percent
September 30, September 30, Increase Increase
2008 2007 Decrease Decrease
Net Assets:
Water Fund $ 156,684 $ 150,023 $ 6,661 4.4%
Sewer Fund 45,451 42,279 3,172 7.5%
Refuse Fund 249 232 17 7.3%
Total Net Assets $ 202,384 $ 192,534 $ 9,850 5.1%
Unrestricted Net Assets:
Water Fund $ 43,665 $ 38,810 $ 4,855 12.5%
Sewer Fund 10,638 8,044 2,594 32.2%
Refuse Fund 249 232 17 7.3%
Total Unrestricted Net Assets $ 54,552 $ 47,086 $ 7,466 15.9%
The Water Fund net assets increased by$6,661,000 and unrestricted net assets increased
by$4,855,000. Key factors in this growth were capital improvement fees of$1,641,000 and
net operating income of$1,409,000.
The Sewer Fund net assets increased by$3,172,000 and unrestricted net assets increased
by $2,594,000. The key factor in this growth was the net operating income of$2,786,000.
See Independent Auditors'Report and Notes to the Financial Statements
10
All
;,. City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
Debt Administration
Below is a schedule of the changes to the City's long-term debt (in thousands).
Balance
Balance September 30,
Governmental Activities: October 1,2007 Additions Retirements 2008
Certificates of Participation $ 14,215 $ - $ (700) $ 13,515
Revenue Bonds 52,115 - (2,500) 49,615
Tax Allocation Bonds 24,885 - (1,225) 23,660
Judgement Obigation Bonds 10,795 - (745) 10,050
Claims 4,672 2,268 (572) 6,368
Compensated Absences 11,068 4,277 (3,092) 12,253
Pension Obligation 4,775 - (335) 4,440
Loans 28,851 1,485 (2,464) 27,872
Leases Payable 2,281 - (600) 1,681
Total Long-Term Obligations-Governmental
Activities 153,657 8,030 (12,233) 149,454
Business Activities:
Compensated Absences 1,059 291 (272) 1,078
Leases 12 - (3) 9
Business Activities 1,071 291 (275) 1,087
Total Long-Term Obligations $ 154,728 $ 8,321 $ (12,508) $ 150,541
Additional information on the City's long-term debt is shown in note 11 to the financial
statements. The City of Huntington Beach is legally restricted to issuing general obligation
bonds to 15% of its assessed valuation. Since the City has no general obligation bonds
outstanding, the limit does not apply. This is shown on page 129 of the financial statements.
The City's total debt decreased $4,187,000 or 2.7%from its beginning amount primarily due
to debt repayment.
The City continues to maintain excellent credit ratings on all of its debt issues. The following
are the latest ratings as determined by Moody's Investors Service and Standard and Poor's.
Debt Instrument Moody's s & P
1998 Tax Allocation Refunding Bonds Aaa Not Available
2000 Lease Revenue Bonds, Series A AA AAA
2001 Lease Revenue Bonds, Series A AA AAA
2001 Lease Revenue Bonds, Series B AA AAA
2002 Tax Allocation Refunding Bonds Aaa Not Available
2004 Judgment Obligation Bonds AA AA-
Capital Assets
The capital assets of the City are those assets, which are used in the performance of the
City's functions including infrastructure assets. The City has elected to use the "Basic
Approach" as defined by GASB statement 34 for infrastructure reporting. The following
infrastructure networks are recorded as capital assets in the government-wide financial
statements:
• Storm drain system including pump stations, drainage system, and manholes.
• Streets, (including land underneath streets) traffic signals, curbs, gutters, and
sidewalks.
See Independent Auditors'Report and Notes to the Financial Statements
11
~' City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
Below is a schedule of the City's capital assets, net of accumulated depreciation (in
thousands):
Amount Percent
September 30, September 30, Increase Increase
Governmental Activities: 2008 2007 Decrease Decrease
Land $ 366,342 $ 360,971 $ 5,371 1.5%
Buildings 102,319 105,288 (2,969) -2.8%
Machinery and Equipment 14,849 19,895 (5,046) -25.4%
Construction in Progress 6,627 3,929 2,698 68.7%
Joint Venture 1,723 1,498 225 15.0%
Infrastructure 146,137 141,840 4,297 3.0%
Total Governmental Activities 637,997 633,421 4,576 0.7%
Business Activities:
Land $ 5,196 $ 7,840 $ (2,644) -33.7%
Buildings 34,947 36,654 (1,707) -4.7%
Machinery and Equipment 4,353 6,282 (1,929) -30.7%
Construction in Progress 12,211 10,786 1,425 13.2%
Infrastructure 61,973 58,324 3,649 6.3%
Total Business Activities 118,680 119,886 (1,206) -1.0%
Total Capital Assets $ 756,677 $ 753,307 $ 3,370 0.4%
Capital assets from governmental activities increased $4,576,000 (0.7%)and capital assets
from business activities decreased $1,208,000 (1.0%). The increases in capital assets from
governmental activities and decrease in capital assets from business activities is primarily
due to the transfer of capital assets of the Emergency Fire Medical Fund and Ocean View
Estates Fund from Business to Governmental Activities. Further information on the City's
capital assets can be found in note 12 of the financial statements.
General Fund Budgetary Highlights
Changes to Original Budget
Final budgeted revenues for the General Fund increased $818,000 (0.5%)from the original
(adopted) budget for the fiscal year ending September 30, 2008. The change from original
to final budget occurred in two areas:
e Other Taxes: Final budgeted revenue received from the Cable TV franchise
increased $66,000. This amount represented revenue owed the city from Time
Warner Cable. The Public Cable Television Authority (PCTA), through a routine
audit, found this amount was due the city from prior year underpayment of franchise
fees.
• Licenses and Permits: This category's final budgeted revenue increased $752,000
from the original budget. The reason for this increase was from reimbursement
revenue received from environmental impact reports (EIRs). Periodically,
agreements for EIRs are approved, with the developer reimbursing the city for the
cost of the EIR.
Comparing the fiscal year 2007/2008 original budget (or adopted) General Fund
(expenditures and transfers) amount of $188,130,000 to the final budgeted amount of
$197,259,000 shows a net increase of $9,129,000 (4.9%). Reasons for the increase
include:
See Independent Auditors'Report and Notes to the Financial Statements
12
City of Huntington Beach
` Management's Discussion and Analysis
For the Year Ended September 30, 2008
• Continuing appropriations from the prior fiscal year for Environmental Impact Reports
in the Planning department.
• Capital improvement projects and capital purchases were carried forward from the
prior fiscal year. Capital items included police vehicles as well as alternative fuel
vehicles for the Public Works department added subsequent to the original budget.
• Per financial policies the City transferred $1 million to the Infrastructure Fund mid-
year. This transfer is reflected as an increase to the budget as well as the
corresponding expense.
Variance with Final Budget
General Fund actual revenues were less than final budget by$6,352,000 for the fiscal year
ending September 30, 2008. The factors contributing to this shortfall are listed below:
• Sales Tax: Actual sales tax revenue was $2,126,000 less than the final budgeted
due to less retail activity citywide.
• Utility Tax: The net $1,534,000 negative variance in actual vs. final budgeted
revenue in this category was primarily due to lower than expected utility user tax
(UUT) revenue for telephone, electric and cable usage; even with higher than
anticipated UUT for gas.
• Licenses and Permits: The slowing economy, which lead to less development
activity citywide, lead to $1,972,000 less in revenue in this category. Building and
Safety and Planning permits and license revenue was less than originally anticipated.
• Intergovernmental: Vehicle License Fee (VLF) revenue apportioned from the State of
California was primarily responsible for the $1,056,000 shortfall in actual vs. final
budgeted revenue in this category. In addition, real property transfer tax revenue
was less than expected due to the slowing real estate market.
General Fund expenditures were $12,175,000 less than the final budget. The favorable
budget variance is due to the following:
• $4 million in savings in benefits due to lower worker's compensation claims. In
addition, funds budgeted for health insurance increases were not needed as a result
of memoranda of understanding negotiations with public safety units.
• The Planning department carried over $1 million in Professional Services into
FY2008/09 for Environmental Impact Reports for projects that were delayed. This
carryover resulted in a large amount of budget to expenditure savings in FY2007/08.
See Independent Auditors' Report and Notes to the Financial Statements
13
City of Huntington Beach
Management's Discussion and Analysis
For the Year Ended September 30, 2008
• Included in the FY2007/08 budget was the appropriation of $2.5 million for the
planned transfer to the Equipment Replacement Reserve. This transfer while
reflected as savings if comparing actuals to budget is accounted for in the fund
balance calculation.
• The purchase of several large pieces of equipment and capital items at the end of
FY2007/08 led to the need to carryover these encumbrances into FY2008/09 as they
were not received by year-end.
Economic Factors and Next Year's Budgets and Rates
The key assumptions in the General Fund revenue forecast for fiscal year 2008/2009 are:
• Moderate to slowing growth in secured property tax revenue, most prevalent slowing
evident in supplemental revenue and real estate transfer taxes
• Moderating growth in sales tax revenue due to slowing economy
• Conduct a comprehensive fee study and update of the cost allocation plan
• Slowing growth of development related revenues due to downturn in housing market
as well as fewer large development projects
• Increased growth in transient occupancy tax(TOT) late in summer 2008 with opening
of new hotel downtown with anticipation of greater TOT growth in 2009 as second
major hotel opens
• Continued growth in lease and concession revenue, especially with several new
cellular service site leases going into effect
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and investors
and creditors with a general overview of the City's finances and to show the City's
accountability for the money it receives. If you have questions about this report, separate
reports of the City's component units or need any additional financial information, contact the
Finance Department at 2000 Main Street, Huntington Beach, California, 92648-2702, phone
(714) 536-5907 or e-mail rsedlak@surfcity-hb.org.
See Independent Auditors' Report and Notes to the Financial Statements
14
THIS PAGE INTENTIONALLY LEFT BLANK
BASIC FINANCIAL STATEMENTS
CITY OF HUNTINGTON BEACH
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
(In Thousands)
Governmental Business-Type
ASSETS Activities Activities Total
Cash and Investments $ 29,556 $ 57,572 $ 87,128
Receivables 31,085 6,110 37,195
Inventories - 1,331 1,331
Prepaids 12,958 - 12,958
Other Assets 1,567 1,567
Subtotal 75,166 65,013 140,179
Restricted Assets:
Cash and Investments 52,984 32,665 85,649
Cash with Fiscal Agent 11,720 - 11,720
Receivables 41,464 - 41,464
Land Held for Resale 2,682 - 2,682
Other Postemployment Benefits Asset 8,227 - 8,227
Total Restricted Assets 117,077 32,665 149,742
Capital Assets :
Non-Depreciable 374,692 17,407 392,099
Depreciable 263,305 101,273 364,578
Total Capital Assets 637,997 118,680 756,677
Total Assets 830,240 216,358 1,046,598
LIABILITIES
Accounts Payable 5,860 4,290 10,150
Accrued Payroll 3,158 256 3,414
Deposits 834 1,685 2,519
Claims Payable 5,464 - 5,464
Current Liabilities 15,316 6,231 21,547
Current Liabilities Payable from Restricted Assets:
Accounts Payable 3,597 - 3,597
Accrued Interest Payable 942 - 942
Unearned Revenue 33,019 - 33,019
Deposits 1,517 - 1,517
Long-Term Obligations Due Within One Year 8,876 3 8,879
Total Current Liabilities Payable
from Restricted Assets 47,951 3 47,954
Long-Term Obligations:
Long-Term Obligations Due in More than One Year 140,578 1,084 141,662
Total Liabilities 203,845 7,318 211,163
NET ASSETS
Investment in Capital Assets, Net of Related Debt 521,654 118,671 640,325
Restricted for:
Debt Service 14,663 - 14,663
Capital Projects 20,428 32,665 53,093
Specific Projects and Programs 34,035 - 34,035
Total Restricted Net Assets 69,126 32,665 101,791
Unrestricted 35,615 57,704 93,319
Total Net Assets $ 626,395 $ 209,040 $ 835,435
See Independent Auditors'Report and Notes to the Financial Statements
17
CITY OF HUNTINGTON BEACH
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30,2008
(In Thousands)
Net(Expense)Revenue and Changes in
Program Revenues Net Assets
Charges for Operating Capital Grants Business-
Current Grants and and Governmental Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities:
City Council $ 295 $ 103 $ $ $ (192) $ $ (192)
City Administrator 1,652 404 (1,248) (1,248)
City Treasurer 1,408 720 (688) (688)
City Attorney 2,914 47 (2,867) - (2,867)
City Clerk 1,020 168 (852) (852)
Finance 4,944 1,354 (3,590) (3,590)
Human Resources 4,725 1,391 (3,334) (3,334)
Planning 3,881 1,987 (1,894) (1,894)
Building 5,747 4,582 (1,165) (1,165)
Fire 27,299 1,423 1,467 (24,409) (24,409)
Information Systems 7,311 697 - (6,614) (6,614)
Police 58,378 5,159 505 (52,714) (52,714)
Economic Development 18,031 3,001 1,668 - (13,362) - (13,362)
Community Services 18,565 15,383 163 606 (2,413) (2,413)
Library Services 5,607 851 95 - (4,661) (4,661)
Public Works 31,246 6,000 3,786 3,337 (18,123) (18,123)
Non-Departmental 30,814 239 - 10,341 (20,234) (20,234)
Interest on Long-Term Debt 5,291 - - - (5,291) (5,291)
Total Governmental Activities 229,128 43,509 7,684 14,284 (163,651) (163,651)
Business-type Activities:
Water Utility 32,701 34,110 - 1,641 - 3,050 3,050
Sewer Service 7,120 9,906 - 2,786 2,786
Refuse Collection 10,561 10,521 (40) (40)
Emerald Cove Housing 893 1,180 - - 287 287
Emergency Fire Medical 6,933 6,762 (171) (171)
Hazmat Service 249 185 (64) (64)
Ocean View Estates 117 337 - - 220 220
Total Business Type Activities 58,574 63,001 - 1,641 6,068 6,068
Total Business and Government
Type Activities $ 287,702 $ 106,510 $ 7,684 $ 15,925 (163,651) 6,068 (157,583)
General Revenues:
Taxes:
Property Taxes 84,016 - 84,016
Sales Taxes 25,560 25,560
Utility Taxes 21,591 21,591
Other Taxes 15,065 15,065
Total Taxes 146,232 - 146,232
Other:
Use of Money and Property 5,714 4,324 10,038
From Other Agencies 6,899 - 6,899
Other 2,332 2,332
Total Other General Revenues 161,177 4,324 165,501
Transfers 9,594 (9,594) -
Total General Revenues and Transfers 170,771 5,270 165,501
Change in Net Assets 7,120 798 7,918
Net Assets-Beginning of Year 619,275 208,242 827,517
Net Assets-End of Year $ 626,395 $ 209,040 $ 835,435
See Independent Auditors'Report and Notes to the Financial Statements
18
CITY OF HUNTINGTON BEACH
BALANCE SHEET
GOVERNMENTALFUNDS
SEPTEMBER 30,2008
(In Thousands)
Other Major Governmental Funds
ow-ncome
Redevelopment Redevelopment Housing Total Major Other
Grants Special Agency Debt Agency Capital Capital Governmental Governmental
ASSETS General Fund Revenue Service Pro ects Projects Funds Funds Total is
Cash and Investments $ 29,556 S 5,139 S 1,291 S 13,802 $ 6,490 $ 56,278 S 26,262 $ 82,540
Cash and Investments with Fiscal Agent - - 2,409 - - 2,409 9,311 11,720
Taxes Receivable 26,529 - 4,557 - - 31,086 637 31,723
Other Receivables 4,556 12,358 27 273 21,099 38,313 2,513 40,826
Due from Other Funds - - - 956 - 956 718 1,674
Advances to Other Funds 1,321 302 1,363 2,986 - 2,986
Land Held for Resale - 2,682 - 2,682 - 2,682
Other Assets - - 300 300 1,267 1,567
Prepaids 12,958 12,958 12,958
TOTAL ASSETS $ 74,920 $ 17,497 $ 8,284 $ 18,015 $ 29,252 $ 147,968 $ 40,708 $ 188,676
LIABILITES AND FUND BALANCE
Liabilities:
Accounts Payable S 5,860 S 1,050 S - S 831 S 1 $ 7,742 $ 1,715 $ 9,457
Accrued Payroll 3,060 29 - 28 8 3,125 33 3,158
Due to Other Funds - - 956 - 956 718 1,674
Advances from Other Funds - - 302 1,363 1,665 1,321 2,986
Deposits Payable 834 75 - 130 - 1,039 1,312 2,351
Deferred Revenue 15,259 11,932 3,371 21,046 51,608 - 51,608
Claims Payable 5,464 - 5,464 5,464
Total Liabilities 30,477 13,086 4,629 2,352 21,055 71,599 5,099 76,698
Fund Balances:
Reserved for:
Encumbrances 6,522 4,411 - 2,336 1,722 14,991 8,199 23,190
Long-Term Receivables 1,321 - - 424 1,363 3,108 - 3,108
Debt Service - 2,409 - - 2,409 6,787 9,196
Capital Projects - - 5,112 5,112 - 5,112
Land Held for Resale - 2,682 - 2,682 2,682
Prepaid Insurance 2,904 - - - - 2,904 - 2,904
Restitution 220 220 220
Total Reserved Fund Balance 10,967 4,411 2,409 5,442 8,197 31,426 14,986 46,412
Unreserved,Designated:
Designated for Future Expenditure(Reported in):
Special Revenue Funds - - - - - - 5,963 5,963
Debt Service Funds - - 1,246 - - 1,246 - 1,246
Capital Projects Funds - - 3,077 3,077 2,427 5,504
Other Designations:
Equipment Replacement 6,913 - 6,913 - 6,913
Capital Projects 3,280 3,280 3,280
Council Projects 890 - - - - 890 - 890
Second Tier 8,591 - - - - 8,591 - 8,591
Economic Uncertainties 13,628 13,628 13,628
Unreserved,Undesignated(Reported in):
General Fund 174 - - - - 174 - 174
Special Revenue Funds - 5,344 5,344
Debt Service Funds - - - - - - 4,221 4,221
Capital Projects Funds - - - 7,144 7,144 2,668 9,812
Total Unreserved 33,476 1,246 10,221 44,943 20,623 65,566
TOTAL FUND BALANCE 44,443 4,411 3,655 15,663 8,197 76,369 35,609 111,978
TOTAL LIABILITES AND FUND BALANCE $ 74,920 $ 17,497 $ 8,284 $ 18,015 $ 29,252 $ 147,968 $ 40,708 $ 188,676
See Independent Auditors'Report and Notes to the Financial Statements
19
CITY OF HUNTINGTON BEACH
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2008
(In Thousands)
Amounts reported for governmental activities in the statement of net assets are
different because:
Total Fund Balances Governmental Funds $ 111,978
Net capital assets used in governmental activities are not current financial resources and,
therefore, are not reported in the governmental funds
Capital Assets 869,508
Accumulated Depreciation (231,511)
Other long-term assets are not available to pay for current-period expenditures and,therefore,
are deferred in the governmental funds
Accrued Property Taxes Receivable 18,589
Other Postemployment Benefit Asset 8,227
Other long-term liabilities are not due in the current period and, therefore, are not recorded in
the governmental funds.
Accrued Interest Payable (942)
Long-term Liabilities, including bonds and certificates of participation payable,are not due and
payable in the current period and therefore are not reported in the governmental funds.
Long-Term Obligations Due in One Year (8,876)
Long-Term Obligations Due in More than One Year (140,578)
Net Assets of Governmental Activities $ 626,395
See Independent Auditors'Report and Notes to the Financial Statements
20
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Other Major Governmental Funds
Redevelopment Redevelopment Low-Income
Grants Special Agency Debt Agency Capital Housing Capital
REVENUES General Fund Revenue Service Projects Projects
Property Taxes $ 65,110 $ $ 17,028 $ $
Sales Taxes 23,934 -Utility Taxes 21,591
Other Taxes 15,065 - -
Licenses and Permits 7,831
Fines and Forfeitures 4,060 - - -
From Use of Money and Property 13,875 308 192 1,422 505
Intergovernmental 4,509 5,551 - .16 -
Charges for Current Service 16,019 - - -
Other 1,883 - 19 1 -
Total Revenues 173,877 5,859 17,239 1,439 505
EXPENDITURES
Current:
City Council 295 - - - -
City Administrator 1,588
City Treasurer 1,357 -
City Attorney 2,771 110
City Clerk 992 -
Finance 4,792 - - -
Human Resources 4,725 -
Planning 3,856 3 -
Building 3,844 113 - -
Fire 26,638 508 -
Information Services 6,741 -
Police 55,808 587 - - -
Economic Development 1,750 2,193 2,316 1,973 7,362
Community Services 13,919 207 - 36 -
Library Services 4,018 52 -
Public Works 21,824 147 - 219
Non-Departmental 21,382 - 112 - -
CapitalOutlay - 5,148 - 3,910 1,017
Debt Service:
Principal 600 110 3,579 - -
Interest 140 240 1,482 - -
Total Expenditures 177,040 9,308 7,489 6,248 8,379
Excess(Deficiency)Of Revenues Over
(Under)Expenditures (3,163) (3,449) 9,750 (4,809) (7,874)
OTHER FINANCING SOURCES(USES)
Transfers In 11,321 1,560 - 3,405
Transfers Out (7,411) (1,087) (7,475) (1,285) -
Total Other Financing Sources(Uses) 3,910 473 (7,475) (1,285) 3,405
Net Change In Fund Balances 747 (2,976) 2,275 (6,094) (4,469)
Fund Balance-Beginning Of Year 43,696 7,387 1,380 21,757 12,666
Fund Balance-End Of Year $ 44,443 $ 4,411 $ 3,655 $ 15,663 $ 8,197
See Independent Auditors' Report and Notes to the Financial Statements
21
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2008
(In Thousands)
(continued)
Total Major Other
Governmental Governmental
Funds Funds Total
$ 82,138 $ - $ 82,138
23,934 2,443 26,377
21,591 - 21,591
15,065 - 15,065
7,831 93 7,924
4,060 - 4,060
16,302 1,919 18,221
10,076 9,155 19,231
16,019 1,890 17,909
1,903 833 2,736
198,919 16,333 215,252
295 - 295
1,588 1,588
1,357 1,357
2,881 2,881
992 992
4,792 4,792
4,725 4,725
3,859 3,859
3,957 3,957
27,146 27,146
6,741 - 6,741
56,395 140 56,535
15,594 634 16,228
14,162 1,504 15,666
4,070 892 4,962
22,190 1,338 23,528
21,494 25 21,519
10,075 11,450 21,525
4,289 3,945 8,234
1,862 3,483 5,345
208,464 23,411 231,875
(9,545) (7,078) (16,623)
16,286 7,992 24,278
(17,258) (1,398) (18,656)
(972) 6,594 5,622
(10,517) (484) (11,001)
86,886 36,093 122,979
$ 76,369 $ 359609 $ 111,978
See Independent Auditors' Report and Notes to the Financial Statements
22
CITY OF HUNTINGTON BEACH
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Amounts reported for governmental activities in the Statement of
Activities are different because:
Net Changes in Fund Balances-Total Governmental funds $ (11,001)
Capital Expenditures- Governmental funds report capital outlays as
expenditures. However, in the Statement of Activities, the cost of these assets
is allocated over their estimated useful lives and reported as depreciation
expense.
Depreciable Assets Purchased 14,829
Non-Depreciable Assets Purchased 8,714
Captial Asset Dispositions (6,837)
Captial Asset Depreciation (12,130)
Accrual of Revenues - Certain revenues in the Statement of Activities do not
meet the"availability"criteria for revenue recognition in the governmental funds
and are not reported in the governmental funds as revenue.
Current Year Property Tax Accrual 18,589
Prior Year Property Tax Accrual (17,528)
Other Post Employment Benefits Payments-Revenues and expenses reported
in the statement of activities do not require the use of current financial
resources and therefore are not reported as revenues and expenditures in
governmental funds. 8,227
Liabilities not Liquidated with Current Resources-Some expenses reported in
the statement of activities do not require the use of current financial resources
and,therefore,are not reported as expenditures in governmental funds.
Current Year Interest Accrual (942)
Prior Year Interest Accrual 996
Long-Term Debt Proceeds-Issuances and changes in long-term debt(bonds,
leases,certificates of participation,compensated absences,etc)provide
current financial resources to governmental funds,while repayments of this
debt consumes the current financial resources of governmental funds. Neither
transaction,however, has any effect on net assets. Also,governmental funds
report the effect of issuance costs, premiums,discounts,etc.when debt is first
issued. These amounts are deferred and amortized in the Statement of
Activities. (8,030)
Payments of Long-Term Debt- Principal payments on long-term debt are
recorded as an expenditure in the governmental funds and a reduction of liability
in the government-wide statements. 12,233
Change in Net Assets of Governmental Activities $ 7,120
See Independent Auditors'Report and Notes to the Financial Statements
23
CITY OF HUNTINGTON BEACH
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2008
(In Thousands)
Total Major Other
Sewer Service Enterprise Enterprise
Water Fund Fund Refuse Fund Funds Funds Total
ASSETS
Current Assets:
Cash and Investments $ 43,063 $ 11,111 $ 180 $ 54,354 $ 3,218 $ 57,572
Restricted Cash 32,665 - - 32,665 - 32,665
Other Receivables 2,448 812 456 3,716 40 3,756
Inventories 1,331 - - 1,331 - 1,331
Unbilled Receivable 1,469 440 445 2,354 - 2,354
Total Current Assets 80,976 12,363 1,081 94,420 3,258 97,678
Capital Assets:
Land 3,907 - - 3,907 1,289 5,196
Buildings and Improvements 39,702 3,102 42,804 4,102 46,906
Machinery and Equipment 8,295 829 9,124 - 9,124
Infrastructure 79,134 39,704 118,838 118,838
Construction in Progress 11 12,200 12,211 12,211
Less Accumulated Depreciation (50,686) (21,022) (71,708) (1,887) 73,595
Total Capital Assets 80,363 34,813 - 115,176 3,504 118,680
Total Assets 161,339 47,176 1,081 209,596 6,762 216,358
LIABILITIES
Current Liabilities:
Accounts Payable 2,080 1,369 816 4,265 25 4,290
Accrued Payroll 188 57 6 251 5 256
Deposits Payable 1,631 2 - 1,633 52 1,685
Current Portion of Claims and Leases 3 - - 3 - 3
Total Current Liabilities 3,902 1,428 822 6,152 82 6,234
to Non-Current Liabilities:
Compensated Absences 747 297 10 1,054 24 1,078
Capital Leases 6 - - 6 - 6
Total Non-Current Liabilities 753 297 10 1,060 24 1,084
Total Liabilities 4,655 1,725 832 7,212 106 7,318
NET ASSETS
Invested in Capital Assets,Net of Related Debt 80,354 34,813 - 115,167 3,504 118,671
Restricted for:
Capital Projects 32,665 - - 32,665 - 32,665
Unrestricted 43,665 10,638 249 54,552 3,152 57,704
Total Net Assets $ 156,684 $ 45,451 $ 249 $ 202,384 $ 6,656 $ 209,040
See Independent Auditors'Report and Notes to the Financial Statements
24
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Total Major Other
Sewer Service Enterprise Enterprise
Water Fund Fund Refuse Fund Funds Funds Total
OPERATING REVENUES
Sales $ 31,464 S $ $ 31,464 $ - $ 31,464
Rentals - - 1,510 1,510
Fees for Service - 9,434 10,394 19,828 6,731 26,559
Other 2,646 472 127 3,245 223 3,468
Total Operating Revenues 34,110 9,906 10,521 54,537 8,464 63,001
OPERATING EXPENSES
Water Purchases 10,570 - - 10,570 - 10,570
Supplies and Operations 5,412 5,887 10,561 21,860 7,697 29,557
Engineering 1,189 1,189 - 1,189
Production and Distribution 5,947 - - 5,947 5,947
Maintenance 2,954 2,954 2,954
Water Meters 1,721 1,721 1,721
Water Quality 530 - 530 530
Depreciation 4,378 1,233 - 5,611 495 6,106
Total Operating Expenses 32,701 7,120 10,561 50,382 8,192 58,574
Operating Income(Loss) 1,409 2,786 (40) 4,155 272 4,427
NON-OPERATING REVENUES(EXPENSES)
Interest Income 3,611 386 6 4,003 321 4,324
Capital Improvement Fees 1,641 - - 1,641 - 1,641
Total Non-Operating Revenues(Expenses) 5,252 386 6 5,644 321 5,965
Change In Net Assets Before Transfers 6,661 3,172 (34) 9,799 593 10,392
TRANSFERS
Transfers In - - 51 51 - 51
Transfers Out - - (9,645) 9,645
Total Transfers - 51 51 (9,645) (9,594)
Total Change In Net Assets 6,661 3,172 17 9,850 (9,052) 798
Net Assets-Beginning Of Year 150,023 42,279 232 192,534 15,708 208,242
Net Assets-End Of Year $ 156,684 $ 45,451 $ 249 $ 202,384 $ 6,656 $ 209,040
See Independent Auditors' Report and Notes to the Financial Statements
25
CITY OF HUNTINGTON BEACH
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Total Major Other
Sewer Service Enterprise Enterprise
Water Fund Fund Refuse Fund Funds Funds Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 34,863 $ 9,446 $ 10,617 $ 54,926 $ 9,638 $ 64,564
Cash Paid to Employees for Services (6,622) (2,071) (243) (8,936) (4,272) (13,208)
Cash Paid to Suppliers of Goods and Services (21,019) (4,015) (10,310) (35,344) (3,731) 39,075
Net Cash Provided(Used)by
Operating Items 7,222 3,360 64 10,646 1,635 12,281
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers In - - 51 51 - 51
Transfers Out - 5,673 5,673
Net Cash Provided(Used)by Non Capital
Financing Activities - - 51 51 5,673 5,622
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of Capital Assets (7,060) (1,811) - (8,871) - (8,871)
Capital Surcharge 1,641 - 1,641 1,641
Net Cash Provided(Used)by Capital
and Related Financing Activities (5,419) (1,811) - 7,230 - (7,230)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 3,611 386 6 4,003 321 4,324
Net Increase(Decrease)in Cash
and Cash Equivalents 5,414 1,935 121 7,470 (3,717) 3,753
Cash and Cash Equivalents-
Beginning of Year 70,314 9,176 59 79,549 6,935 86,484
Cash and Cash Equivalents-End of Year $ 75,728 $ 11,111 $ 180 $ 87,019 $ 3,218 $ 90,237
RECONCILIATION OF OPERATING
INCOME(LOSS)TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES
Operating Income(Loss) $ 1,409 $ 2,786 $ (40) $ 4,155 $ 272 $ 4,427
Adjustments to Reconcile Operating
income to Net Cash Provided(Used)
by Operating Activities
Depreciation 4,378 1,233 - 5,611 495 6,106
Decrease(Increase)in Accounts Receivable 425 (352) 40 113 1,174 1,287
Decrease(Increase)in Unbilled Receivables 328 (109) 58 277 - 277
Decrease(Increase)in Inventory (69) - - (69) - (69)
Increase(Decrease)in Accounts Payable 467 (246) 3 224 (158) 66
Increase(Decrease)in Accrued Payroll 61 18 1 80 (61) 19
Increase(Decrease)in Claims Payable (6) - - (6) - (6)
Increase(Decrease)in Deposits 172 1 (2) 171 (17) 154
Increase(Decrease)in Compensated Absences 57 29 4 90 70 20
Net Cash Provided(Used)by
Operating Activities $ 7,222 $ 3,360 $ 64 $ 10,646 $ 1,635 $ 12,281
See Independent Auditors'Report and Notes to the Financial Statements
26
CITY OF HUNTINGTON BEACH
STATEMENT OF FIDUCIARY FUND NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2008
(In Thousands)
Trust Fund-
Retirement
ASSETS Total Agency Funds Supplemental Fund
Cash and Investments $ 3,670 $ 22,954
Cash with Fiscal Agent 4,140 -
Accounts Receivable, Net 246 188
Total Assets $ 8,056 $ 23,142
LIABILITIES
Accounts Payable $ 139 $ 14
Due to Bondholders 5,695 -
Held for Others 2,222 -
Net Pension/Benefit Obligation - 4,440
Total Liabilities 8,056 4,454
NET ASSETS
Held in Trust For Pension Benefits and Other Purposes $ - $ 18,688
CITY OF HUNTINGTON BEACH
STATEMENT OF CHANGES IN FIDUCIARY FUND NET ASSETS
TRUST FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Trust Fund-
Retirement
ADDITIONS Supplemental Fund
Employer Contributions $ 3,746
Other Income 343
Interest Income 903
Total Additions $ 4,992
DEDUCTIONS
Benefits 1,974
Total Deductions 1,974
Change in Net Assets 3,018
Net Assets- Beginning of Year 15,670
Net Assets- End of Year $ 18,688
See Independent Auditors'Report and Notes to the Financial Statements
27
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
Footnote
Number Description Page
1. Summary of Significant Accounting Policies................29-38
2. Cash and Investments .....................................................39-43
3. Other Receivable...............................................................43
4. Deferred Compensation...................................................44
5. Deferred Revenue.............................................................44
6. Retirement Plan — Normal ...............................................44-46
7. Retirement Plan — Supplemental ...................................47-49
8. Post-Employment Medical Insurance ...........................49-52
9. Risk Management..................................................... 53-54
10. Interfund Transactions............................................................55-57
11. Long-Term Debt Obligations...........................................58-70
12. Capital Assets....................................................................71-73
13. Commitments and Contingencies..................................74-75
14. Other Information ..............................................................76
15. Subsequent Event.............................................................76
28
.; City of Huntington Beach
Notes to Financial Statements
,c For the Year Ended September 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Reporting Entity
The City of Huntington Beach is the primary government. It was incorporated in 1909,
is a charter, full-service city. The form of government is Council-Administrator.
Component units are legally separate organizations for which the City Council is
financially accountable, or organizations that if excluded from the accompanying
financial statements, would make them misleading. The component units described
below are blended (presented as if they are part of the primary government)with the
primary government for financial reporting purposes because either the component
units have governing bodies identical to the City's (the City Council) or provide
services exclusively to the City. Financial accountability means the appointment of a
voting majority of the component unit's board and either the ability to impose will by
the City or the possibility that the component unit will provide a financial benefit or
impose a financial burden on the City.
• Redevelopment Agency of the City of Huntington Beach (the Redevelopment
Agency)—This entity was formed in 1967 to renovate older areas in the City. The
City Council serves as its governing body and adopts its annual budget. The
Redevelopment Agency is financially dependent on the City for all of its
operations. Separately prepared financial statements are available for the
Redevelopment Agency from the Finance Department.
• Huntington Beach Public Financing Authority (Public Financing Authority) —
This Corporation was formed in March 1988 to issue debt to finance public
improvements and other capital purchases for the City and Redevelopment
Agency. The Public Financing Authority's governing body is the City Council,
which also adopts the annual budget. The Public Financing Authority is financially
dependent on the City. There are no prepared financial statements available for
the Public Financing Authority.
• The City of Huntington Beach Community Facilities Districts 1990-1, 2000-1,
2002-1, and 2003-1 (Community Facilities Districts), were formed to construct
public improvements within the City boundaries. The governing board of these
districts is the City Council. The proceeds of debt issued and the expenditures for
the public improvements are recorded in capital projects funds. The Community
Facilities Districts' debt is not an obligation of the City. There are no separate
financial statements prepared for these entities.
29
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Government-wide Financial Statements
The government-wide financial statements include a Statement of Net Assets, a
Statement of Activities, and Changes in Net Assets. These statements present
summaries of Governmental and Business-Type Activities for the City accompanied
by a total column. Fiduciary activities of the City are not included in these
statements. These statements are presented on an "economic resources"
measurement focus and the accrual basis of accounting. Accordingly, all of the City's
assets and liabilities, including capital assets, as well as infrastructure assets, and
long-term liabilities, are included in the accompanying Statement of Net Assets. The
Statement of Activities presents changes in net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while
expenses are recognized in the period in which the liability is incurred.
The statement of activities demonstrates the degree with which the direct expenses
of a given function or segment is offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. Indirect
expenses are allocated to the various functions based on a proportionate use of
services. The types of transactions reported as program revenues for the City are
reported in three categories: 1)charges for current services, 2)operating grants and
contributions, and 3) capital grants and contributions. Taxes and other items not
properly included among program revenues are reported as general revenues.
When both restricted and unrestricted resources are available for use, it is the
government's policy to use restricted resources first, then unrestricted resources as
they are needed.
Government-wide financial statements do not provide information by fund or account
group. They simply distinguish between governmental and business activities. The
City's statement of net assets includes both current and non-current assets and
liabilities.
Financial Statement Classification
In the government-wide financial statements, net assets are classified in the following
categories:
Invested In Capital Assets, Net of Related Debt—This category groups all capital
assets, including infrastructure, into one component of net assets. Accumulated
depreciation and the outstanding balances of debt that are attributable to the
acquisition, construction, or improvement of these assets reduce this category.
30
City of Huntington Beach
_ Notes to Financial Statements
5 ; For the Year Ended September 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Restricted Net Assets — This category presents restrictions imposed by creditors,
grantors, contributors or laws or regulations of other governments and restrictions
imposed by law through constitutional provisions or enabling legislation. This
category presents restrictions placed on the categories of Capital Projects, Debt
Service, and Specific Projects and Programs as established by the City Council.
Unrestricted Net Assets—represent the net assets of the City, not restricted for any
project or other purpose.
c. Fund Financial Statements
Separate fund financial statements are prepared for governmental funds, proprietary
funds, and fiduciary funds. Major individual governmental and enterprise funds are
reported as separate columns in the fund financial statements.
The City applies all applicable Governmental Accounting Standards Board (GASB)
pronouncements (including all National Council on Governmental Accounting NCGA
Statements and Interpretations currently in effect) as well as the following
pronouncements issued on or before November 30, 1989, to the business type
activities, unless those pronouncements conflict with or contradict GASB
pronouncements, Financial Accounting Standards Board (FASB) Statements and
Interpretations, Accounting Principles Board (APB) Opinions, and Accounting
Research Bulletins (ARB) of the committee on Accounting Procedure. The City
applies all applicable FASB Statements and Interpretations issued after November
30, 1989, except those that conflict with or contradict GASB pronouncements.
Measurement Focus, Basis of Accounting, and Financial Statement
Presentation
All governmental funds are accounted for on a spending or "current financial
resources" measurement focus and the modified accrual basis of accounting. Only
current assets and current liabilities are included on the Balance Sheets. The
Statement of Revenues, Expenditures, and Changes in Fund Balances present
increases (revenues and other financing sources) and decreases (expenditures and
other financing uses) in net current assets. Under modified accrual basis of
accounting, revenues are recognized in the accounting period in which they become
both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except that revenues subject to
accrual (generally 60 days after year-end) are recognized when due. The primary
revenue sources, which have been treated as susceptible to accrual by the City, are
property tax, sales tax, intergovernmental revenues, and other taxes. Expenditures
are recorded in the accounting period in which the related fund liability is incurred.
31
City of Huntington Beach
(Votes to Financial Statements
For the Year Ended September 30, 2003
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In the Fund financial statements, reserves and designations segregate portions of
fund balance that are either not available or have been earmarked for specific
purposes. The various reserves and designations are established by actions of the
City Council and Management and can be increased, reduced, or eliminated by
similar actions.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement
of Revenues, Expenditures, and Changes in Fund Balances for all major
governmental funds and non-major funds aggregated. An accompanying schedule is
presented to reconcile and explain the differences in net assets as presented in these
statements to the net assets presented in the government-wide financial statements.
The City presents all major funds that met those qualifications.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Assets, a
Statement of Revenues, Expenses, and Changes in Fund Net Assets, and a
Statement of Cash Flows for each major proprietary fund and non-major funds
aggregated.
Proprietary funds are accounted for using the "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all assets and liabilities
(whether current or non-current) are included on the Statement of Net Assets. The
Statement of Revenues, Expenses, and Changes in Fund Net Assets present
increases (revenues) and decreases (expenses) in total net assets. Under the
accrual basis of accounting, revenues are recognized in the period in which they are
earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated
from the primary operations of the fund. All other revenues are reported as non-
operating revenues. Operating expenses are those expenses that are essential to
the primary operations of the fund. All other expenses are reported as non-operating
expenses.
32
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 309 2008
".a
um
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net Assets and a
Statement of Changes in Net Assets for Trust Funds. The City's Fiduciary funds
represent Agency Funds, which are custodial in nature (assets equal liabilities) and
do not involve measurement of results of operations. The Agency funds are
accounted for on the accrual basis of accounting. The Retirement Trust fund
accounts for the activities of the supplemental retirement plan for all employees hired
prior to 1997, which accumulates resources for pension benefits to qualified
employee. Contributions made are funded by a percentage of payroll and are
recognized when the payroll is incurred. Fiduciary funds are not presented in the
government-wide financial statements because these funds do not represent net
assets available to the City.
The City reports the following major funds:
Governmental Funds
• General Fund - accounts for activity not required to be accounted for in another
fund
• Grant Special Revenue - accounts for revenues and expenditures of grant
related activity
• Redevelopment Agency Debt Service - accounts for the related debt service
activity for certain projects in the City's Redevelopment project areas
• Redevelopment Agency Capital Projects - accounts for acquisition and
construction of capital assets for certain projects in the City's Redevelopment
project areas
• Low Income Housing Capital Projects - accounts for the activity related to low
income housing
Proprietary Funds
• Water Fund - used to account for water sales to customers
• Sewer Service Fund - accounts for user fees charged to residents and
businesses for sewer service
• Refuse Fund - used to account for the activities of the City's refuse program
The City's fund structure also includes the following fund types:
The Special Revenue Funds are used to account for proceeds of specific revenue
sources that are legally restricted or otherwise designated for specific purposes
The Debt Service Funds are used to account for the receipts for and payment of
general long-term debt
The Capital Projects Funds are used to account for the acquisition and construction
of capital assets other than those financed by proprietary fund types
33 �
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2003
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Other Enterprise Funds
• Emerald Cove Housing Fund—accounts for the operations of a senior-citizens
apartment complex
• Emergency Fire Medical Fund — accounts for the user-fee portion of the City's
paramedic service
• Hazmat Service Fund — accounts for user fees charged for City's hazardous
material program
• Ocean View Estates Fund — accounts for the operation of the Ocean View
Estates Mobile Home Park owned by the City
Fiduciary Funds
• General Deposit Fund - accounts for the deposit of general monies held by the
City for private individuals and businesses
• Community Facilities Districts Funds -accounts for the debt service activity of
the City's community facilities district
• Huntington Beach Auto Business Improvement District Fund - accounts for
the activities of the City's business improvement district
• Central Net Operations Authority Fund-accounts for the activity of the Central
Net Operations Authority
• Retiree Medical Insurance Fund - accounts for the City's medical retirement
program. During the year, the city adopted Government Accounting Standards
Board (GASB) Statement 45, and the balance of this fund was transferred to an
irrevocable trust (see note 8)
Reconciliations of Financial Statements
Reconciliation of the Fund financial statements to the government-wide financial
statements is provided to explain the differences created by the integrated approach
of GASB Statement No. 34.
d. Cash and Investments
The City records investments at fair value. The City pools cash resources of its
various funds to facilitate cash management. Cash in excess of current requirements
is invested and reported as investments. It is the City's intent to hold investments
until maturity. However, the City may, in response to market conditions, sell
investments prior to maturity in order to improve the quality, liquidity, or yield of the
portfolio. Interest earnings are apportioned among funds based on ending
accounting period cash and investment balances. The City's cash and cash
equivalents are considered to be cash on hand, demand deposits, and highly liquid
investments with original maturities of three months or less at the time of acquisition.
34
City of Huntington Beach
Notes to Financial Statements
__, For the Year Ended September 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for
Certain Investments and for External Investment Pools, highly liquid market
investments with maturities of one year or less at time of purchase are stated at
amortized cost. All other investments are stated at fair value. Market value is used
as fair value for those securities for which market quotations are readily available.
The City participates in the Local Agency Investment Fund (LAIF), an investment
pool managed by the State of California. LAIF has invested a portion of the pool
funds in Structured Notes and Asset-Backed Securities. LAIF's investments are
subject to credit risk with the full faith and credit of the State of California
collateralizing these investments. In addition, these Structured Notes and Asset-
Backed Securities are subject to market risk as a result of changes in interest rates.
The City's investment policy is further discussed in note 2 on page 38.
The City pools all non-restricted cash for investment purchases and allocates interest
income based on month-end cash balances. Funds that have restricted cash record
interest income in the respective fund.
e. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure, are
reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets have an acquisition cost of
$50,000 or greater($100,000 for infrastructure)and a useful life of two years or more.
The City records all purchased capital assets at historical cost (where historical
records are available) and at estimated historical cost where no historical records
exist. Capital assets acquired from gifts or contributions are recorded at fair market
value at the time received, or in the case of infrastructure assets, at City Council
acceptance date.
In the Government-Wide and proprietary fund financial statements, depreciation is
recorded on the straight-line method over the estimated useful lives of the assets
shown below and charged to the respective fund. No depreciation is recorded in the
governmental funds of the fund financial statements.
Production, pumping transmission, and distribution plant 10 to 15 years
General Plant 20 to 50 years
Transportation Equipment 5 to 30 years
Infrastructure 50 Years
35
' City of Huntington Beach
(Votes to Financial Statements
For the Year Ended September.30, 2003
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The
amount of interest to be capitalized is calculated by offsetting interest expense
incurred from the date of borrowing until completion of the project with interest earned
on the invested proceeds over the same period.
f. Inventories
Proprietary inventories are valued at weighted-average cost. There are no
inventories in governmental funds.
g. Interfund Transactions
As a general rule, interfund transactions have been eliminated from the government-
wide financial statements. Exceptions to this rule are payments in-lieu or charges for
current service between the City's enterprise activity and the City's General Fund.
Elimination of these transactions would distort the direct costs and program revenues
for the various functions. Certain eliminations have been made regarding interfund
activities, payables, and receivables. All internal balances in the Statement of Net
Assets have been eliminated except those representing balances between the
governmental activities and the business-type activities, which are presented as
internal balances and eliminated in the total primary government column.
Numerous transactions occur between funds of the City resulting in transfers,
amounts due to or from other funds. Amounts due to or from are the current (due
within one year) portion of moneys that are to be paid or to be received from other
funds.
h. Long-Term Obligations
In the government-wide and proprietary fund financial statements, long-term
obligations are recorded as liabilities in the applicable governmental activities,
business type activities, or proprietary fund-type statement of net assets. Bond
premiums and discounts, as well as issuance costs, are deferred and amortized over
the life of the debt. In the governmental fund financial statements, bond discounts
and premiums are recognized as other financing source or use. Issuance costs are
recorded a current year expenditure.
36
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i. Employee Compensated Absences
The City records the cost of all accumulated and unused leave time (vacation, sick,
comp)as a liability when earned in the government-wide financial statements. In the
fund financial statements these amounts are recorded as expenditures in the years
paid since it is the City's policy to pay these from future financial resources, rather
than available, spendable resources.
j. Property Tax Revenue
Property tax in California is levied according to Article 13-A of the California
Constitution. The basic levy is a countywide-levy of one percent of total assessed
valuation and is allocated to county governments, school districts, cities and special
districts. Additional levies require two-thirds approval by voters and are allocated
directly to the specific government.
In the government-wide financial statements, property tax is recorded when earned,
regardless of when levied, due, or received. In the fund financial statements,
property tax revenue is recognized in the fiscal year levied provided that revenue is
collected in time to pay current year liabilities. Deferred property tax revenue
represents property taxes related to the current fiscal year that are collected more
than 60 days after the fiscal year end. Since the City's fiscal year differs from the
County's property tax year, there is a difference between the property tax revenue
recorded on the fund financial statements and the government-wide financial
statements which is noted as a reconciling item in both the Reconciliation of the
Statements of Revenues, Expenditures, and Changes in Fund Balance of
Governmental Funds to the Statement of Activities and the Reconciliation of the
Balance Sheet of Governmental Funds to the Statement of Net Assets.
The County acts as a collection agent for property tax for all of the local governmental
units. Property taxes are normally collected twice per year. The property tax calendar
is as follows.
• Lien Date, January 1 - Prior Fiscal Year
• Levy Date, July 1 - Prior Fiscal Year
• Due Date, First Installment - November 1
• Due Date, Second Installment - February 1
• Delinquent Date, First Installment - December 10
• Delinquent Date, Second Installment - April 10
37
' City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The taxes are paid to the local governments periodically during the year. Below are
the dates of the payments from the County:
• Payments of First Installment November to December
• Balance of First Installment February 1
• Payments of Second Installment March to April
• Balance of Second Installment July 26
k. Cash Flow Statements
For purposes of the Statement of Cash Flows, the Proprietary Fund types consider all
cash and investments to be cash equivalents, as these funds participate in the
citywide cash and investment pool.
I. Estimates
The accompanying financial statements require management to make estimates and
assumptions that effect certain report amounts and disclosures. Actual results could
differ from those estimates.
m. Implementation of New Accounting Pronouncements
During the year, the city implemented Governmental Accounting Standards Board
(GASB) Statement 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions and GASB Statement 50, Pension
Disclosure — an amendment of GASB Statements No. 25 and No. 27.
38
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
2. CASH AND INVESTMENTS
Investments Authorized by the California Government Code and the City's
Investment Policy:
The table below identifies the investment types that are authorized for the City by the
California Government Code (or the City's investment policy, where more restrictive).
The table also identifies certain provisions of the California Government Code 53601 (or
the City's investment policy, where more restrictive)that address interest rate risk, credit
risk, and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer
United States (U.S.) Treasury Obligations 5 years No Limit No Limit
U.S. Government Sponsored
Enterprise Securities 5 years No Limit No Limit
Banker's Acceptances 180 days 25%/40%** 10%
Time Certificate of Deposits 3 years 50% 10%
Negotiable Certificates of Deposit 3/5 years*** 30% 10%
Repurchase Agreements 3 months 20% 10%
Reverse-Repurchase Agreements ***** 92 days 50% 10%
Local Agency Investment Fund (LAIF) 5 years No Limit $60,000,000
Commercial Paper 270 days 25% 10%
Municipal Bonds from Any State 5 years 50% 10%
Money Market Funds 60 Day Wgt Avg 15% 10%
Medium Term Notes 5 years 20%/30%**** 10%
N/A- Not Applicable
**- 40% only with City Council approval
*** - 5 years only with City Council approval
30% with City Council approval
Only with City Council approval
39
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2003
2. CASH AND INVESTMENTS (Continued)
Investments Authorized by Debt Agreements:
Investments of debt proceeds held by bond trustee are governed by provisions of the
debt agreements, rather than the general provisions of the California Government Code
or the City's investment policy. The table below identifies the investment types that are
authorized for investments held by a bond trustee, but bond indentures do allow for other
forms of investments if approved in writing by the bond insurer that are not identified
below. The table also identifies certain provisions of these debt agreements that address
interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer
United States (U.S.) Treasury Obligations Life of Bond No Limit No Limit
U.S. Government Sponsored
Enterprise Securities Life of Bond No Limit No Limit
Banker's Acceptances 180 days No Limit No Limit
Time Certificate of Deposits 360 days No Limit No Limit
Negotiable Certificates of Deposit 360 days No Limit No Limit
LAIF N/A No Limit No Limit
Commercial Paper 270 days No Limit No Limit
Municipal Bonds from Any State Life of Bond No Limit No Limit
Money Market Funds N/A No Limit No Limit
Investment Agreements Life of bond No Limit No Limit
Forward Purchase/Delivery Agreements Life of bond No Limit No Limit
N/A- Not Applicable
40
�,. City of Huntington Beach
- - (Votes to Financial Statements
For the Year Ended September 30, 2008
2. CASH AND INVESTMENTS (Continued)
Cash and investments were recorded in the government-wide statements as follows (in
thousands):
I►uestn-ert Maturities(In Years
DEPOSITS: Fair Value Less than 1 1 to 3 3 to 5 more than 5 Total
Demand Accounts $ 1,554 $ 1,554 $ $ $ $ 1,554
INVESTMENTS:
US Treasuries 12,098 12,098 12,098
US Agencies 112,015 34,085 41,988 35,942 112,015
Qaaranteed Investment Contracts 6,800 - - - 6,800 6,800
Commercial Paper 11,914 11,914 - 11,914
Money N}arketFunds 3,550 3,550 - 3,550
Medium Term Notes 3,967 2,000 1,967 3,967
Local Agency Investment Fund 63,363 63,363 - - - 63,363
Subtotal of Investments 213,707 127,010 43,955 35,942 6,800 213,707
Total Deposits and Investments $ 215,261 $ 128,564 $ 43,955 $ 35,942 $ 6,800 $ 215,261
At Year end the City had the following investments and maturities (amounts in
thousands):
Statement of Net Assets:
Cash and Investments $ 87,128
Restricted Assets(Cash and Cash
Equivalents) 85,649
Cash with Fiscal Agent-Restricted 11,720
Total Per Statement of Net Assets 184,497
Fiduciary Funds:
Cash and Investments 26,624
Cash with Fiscal Agent-Restricted 4,140
Total Fiduciary Funds 30,764
Total Cash and Investments $ 215,261
Interest Rate Risk- As a means of limiting exposure to fair value losses arising from
interest rates, the City's investment policy limits investments over three years to be 30%
or less.
Credit Risk- State law allows investment in United States Government sponsored
enterprise (GSE) obligations noted above as US Agencies. As of Year-end, the
Standard and Poor's and Moody's ratings of the LSE's were AAA. The investments in
the Guaranteed Investment Contracts (GIC) are backed by collateral of either 104% or
107% depending on the type of collateral and GIC provider. The GIC providers are rated
by Standard and Poor's and Moody's at AAA, AA, and AA- and Aaa, Aa2, or Aa3
respectively. State law limits investments in commercial paper and medium term notes
to have at least an A-1 or P-1 or an "A" rating respectively issued by a nationally
41
f City of Huntington Beach
1}
Notes to Financial Statements
For the Year Ended September 30, 2008
2. CASH AND INVESTMENTS (Continued)
recognized statistical rating organization. It is the City's policy to limit its investments in
these investment types to the top two ratings issued by these rating organizations. As of
year-end, Standard and Poor's and Moody's ratings of the City's investments in
commercial paper were Al or better, and P-1 respectively.
The City's investment policy for operating funds limits investments in Money Market
funds to 15% of the portfolio and both Standard and Poor's and Moody's have rated the
money market funds in our bond investment portfolio as AAA. Both Standard and Poor's
and Moody's rated the City's investments in medium-term notes as AAA.
Concentration of Credit Risk—The City's investment policy limits investments in any one
issuer, except for U.S. Treasury Securities and U.S. Government Agencies to no more
than 10% of the investments. In addition, no more than 50% can be invested in a single
security type or with single financial institution and every security type has a specific limit.
This is in addition to the limits placed on investments by State Law. Investments in any
one issuer that represent 5% or more of total City's investments are as follows:
Par Value
Issuer Investment Type Amount
Federal Home Loan Mortgage Corporation U.S. Government Sponsored
Enterprise Securities $32,000,000
Federal Home Loan Bank U.S. Government Sponsored
Enterprise Securities $40,000,000
Federal Farm Credit Bank U.S. Government Sponsored
Enterprise Securities $18,000,000
Federal National Mortgage Association U.S. Government Sponsored
Enterprise Securities $22,000,000
Local Agency Investment Fund — The City holds investments with the Local Agency
Investment Fund (LAIF), a State of California investment pool, which at year-end also
included a portion of the pool funds invested in Structured Notes and Asset-Backed
Securities. These investments included the following:
Structured Notes are debt securities (other than asset-backed securities)whose cash
flow characteristics (coupon rate, redemption amount, or stated maturity)depend on
one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities the bulk of which are mortgage-backed securities, entitle
their purchasers to receive a share of the cash flow from a pool of assets such as
principal and interest repayments from a pool of mortgages (such as Collateralized
Mortgage Obligations) or credit card receivables.
42
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
2. CASH AND INVESTMENTS (Continued)
Guaranteed Investment Contracts (GIC)—The City has recorded the GICs at cost versus
fair value due to the lack of readily available market pricing for these types of
instruments. All GICs held by the City are either collateralized with government
securities that under the GIC agreement are required to have a higher market value than
cost or fully guaranteed by a government entity and no losses are expected.
As of September 30, 2008, the City held $87,919,000 in callable securities, which
amounted to approximately 45% of investments. LAIF had invested 17.99% of the
pooled investments funds in Structured Notes and Asset-Backed Securities. This
external investment pool is not rated.
3. OTHER RECEIVABLE
a. Deferred Loans — Developers
Loans made to developers to construct or rehabilitate certain facilities under deferred
loan agreements total $28,986,000 at year-end. These loans are deferred until a
future event occurs. Loans made by the Agency total $21,046,000 and loans made
under the Home Program total $7,940,000.
b. Deferred Loans — Housing Rehabilitation
Loans made to qualified homeowners and landlords in the City of Huntington Beach
to rehabilitate certain single-family homes or multifamily rental housing under
deferred loan agreements total $3,046,000 at year-end. These loans are deferred
until a future event occurs.
c. Other Receivables
A summary of Other Receivable as of September 30, 2008 is as follows:
Descripton Amount
Deferred Loans Receivable $ 28,986,000
Housing Rehabilitation Loans Receivable 3,046,000
Emergency Medical Fee Receivable 1,028,000
Franchise Fee Receivable 1,859,000
Gas Tax Fund - Federal Grant Receivable 1,775,000
Other Receivables 4,132,000
Total $ 40,826,000
43
City of Huntington Beach
- Notes to Financial Statements
For the Year Ended September 30, 2008
4. DEFERRED COMPENSATION
Permanent City employees may defer a portion of their salary under tax-deferred plans
as permitted under Internal Revenue Code. These plan permits employees to defer a
portion of their salary until future years. The compensation is not available to the
employees until termination, retirement, or unforeseen emergency.
The City has established a trust for the assets of the plans held by third parties. All
property and rights purchased with these assets, as well as all income attributable to
them are held in trust for the exclusive benefit of the participant and their beneficiary.
The amounts are no longer the property of the City and are not subject to the claims of
the City's general creditors. Amounts administered by outside organizations in a trustee
capacity are no longer reported as assets of the City. The City does not have fiduciary
responsibility for these assets.
5. DEFERRED REVENUE
Certain revenues in governmental funds are deferred until received. The property tax
amounts are recognized in the year as revenue in the government-wide financial
statements, but are recorded as deferred revenue in the fund financial statements. The
other amounts are unearned revenue in both the funds and government-wide financial
statements. The amounts are as follows (in thousands):
Deferred
Deferred Loans-
Loans- Housing Other Deferred
Property Taxes Developers Rehabilitation Revenue Total
General Fund $ 15,218 $ $ - $ 41 $ 15,259
Redevelopment Agency Debt Service 3,371 - - 3,371
Low Income Housing - 21,046 - - 21,046
Grants - 7,940 3,046 946 11,932
Total $ 18,589 $ 28,986 $ 3,046 $ 987 $ 51,608
Deferred Loans to developers and for housing rehabilitation is discussed in the notes
receivable note.
6. RETIREMENT PLAN — NORMAL
a. Plan Description
The City contributes to the California Public Employees' Retirement System
(CalPERS), an agent, which is a multiple-employer public employee defined benefit
pension plan. CalPERS provides retirement and disability benefits, annual cost-of-
living adjustments, and death benefits to plan members and beneficiaries. CalPERS
acts as a common investment and administrative agent for participating public entities
44
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
6. RETIREMENT PLAN — NORMAL (Continued)
within California. Benefit provisions and all other requirements are established by
state statute and city ordinance. Copies of CalPERS annual financial report may be
obtained from their executive office: 400 P Street, Sacramento, CA, 95814.
b. Employer and Employee Contribution Obligations
The City makes two types of contributions for covered employees. The first
contribution represents the amount the City is required to make (the employer rate).
The second represents an amount, which is made by the employee, but is
reimbursed to the employee by the City(the member rate). The member rate is set by
contract and normally remains unchanged.
The employer rate is an actuarially established rate, is set by CalPERS, and changes
from year to year. The employer rates for the fiscal year ending Year-end are:
October 1, 2007 to July 1, 2008 to
June 30, 2008 Yearend
Local Miscellaneous 8.212% 8.245%
Local Safety 28.261% 28.142%
c. Employer and Employee Contribution Obligations
The member rates are as follows:
Rate
Local Miscellaneous 7.000%
Local Safety 9.000%
d. Annual Pension Cost
The City's annual pension cost of$13,704,000 was equal to the City's required and
actual contributions. The required contribution was determined as part of a June 30,
2005 and 2006, actuarial valuations using the entry age normal actuarial cost
method.
CalPERS conducted an actuarial valuation using the entry-age actuarial cost method
using a level percent of payroll to determine the City's net pension obligation as of
June 30, 2008. Significant assumptions were:
® Average amortization remaining period -18 years as of the Valuation Date —
closed end
• Asset valuation method - 3 years smoothed market
45 �
City of Huntington Beach
- Notes to Financial Statements
For the Year Ended September 30 a de , 2008
6. RETIREMENT PLAN — NORMAL (Continued)
• Investment Rate of Return -7.75%
• Projected salary increases - 3.25% to 13.15% (safety) and 3.25% to 14.45%
(miscellaneous) depending on age, service, and type of employment
• Inflation - 3.00%
• Payroll growth - 3.25%
• Individual salary growth - A merit scale varying by duration of employment
coupled with an assumed annual inflation component of 3.0% and an annual
production growth of .25%
Initial unfunded liabilities are amortized over a closed period that depends on the
plan's date of entry into CalPERS. Subsequent plan amendments are amortized as a
level percent of pay over a closed 20-year period. Gains and losses that occur in the
operation of the plan are amortized over a rolling period, which results in an
amortization of 10% of the unamortized gains and losses each year. If the plan's
accrued liability exceeds the actuarial value of the assets, then the amortization
payment on the total unfunded liability may not be lower than the payment calculated
over a 30-year amortization period.
e. Trend Information
Local Miscellaneous Local Safety
Annual Pension Annual Pension
Cost(in Percentage of Net Pension Cost(in Percentage of Net Pension
Fiscal Year thousands) APC Funded Obligation thousands) APC Funded Obligation
9/30/2006 $ 3,123 100% $ $ 8,616 100% $
9/30/2007 $ 3,375 100% $ $ 9,046 100% $
9/30/2008 1 $ 3,745 1 100% $ $ 9,959 1 100%1 $
f. Funded Status and Funding Progress
Below is the funding progress based on the June 30, 2007 actuarial valuation for the
miscellaneous and safety plans:
Entry Age Excess
Normal Assets as a
Actuarial Excess Assets Percentage
Accrued Actuarial Value (Unfunded Funded of Covered
Plan Liability(AAL) of Assets Liability) Ratio Covered Payroll Payroll
Safety $ 409,859 $ 338,305 $ (71,554) 82.5% $ 34,961 -204.7%
Miscellaneous 295,078 287,302 (7,776) 97.4% 44,249 -17.6%
Total $ 704,937 $ 625,607 $ (79,330) 88.7% $ 79,210 -100.2%
The schedule of funding progress presented as RSI following the notes to the basic
financial statements, presents multiyear trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
46
City of Huntington Beach
- Notes to Financial Statements
== For the Year Ended September 30, 2008
7. RETIREMENT PLAN — SUPPLEMENTAL
a. Plan Description
The City provides a supplemental retirement plan for all employees hired prior to
1997 (exact dates are different for various associations). It is a single-employer
CalPERS. It is a defined benefit plan and will pay the retiree an additional amount to
his or her normal amount for life. The City's contracts with employee bargaining
associations establish the plan. These associations must agree to any changes to
the plan. The amount will cease upon the employee's death. The amount that is
computed as a factor of an employee's normal retirement allowance is computed at
retirement and remains constant for his or her life. Of the 1,143 active employees
reported on the September 30, 2008 data, only 546 were eligible for plan benefits.
No separately prepared financial statements are prepared for this plan and it is not
included in the financial report of any other pension plan. The assets used to pay
these liabilities have not yet been set up in a legal trust.
b. Employer Obligations and Funding Status and Progress
The City annually transfers amounts from the various City funds to a pension trust
fund. The City is required to contribute the actuarially determined rate of 4.20% of
total payroll for all permanent employees. Administrative costs of this plan are
financed through investment earnings.
c. Annual Pension Cost and Net Pension Obligation
The City's annual pension cost and net pension obligation for this plan fiscal year
2007/08 were (in thousands):
Annual required contribution $ 3,419
Interest on net pension obligation 262
Adjustment to annual required contribution (389)
Annual pension cost 3,292
Contributions made (3,627)
Increase (decrease) in net pension obligation (335)
Net Pension Obligation — Beginning of Year 4,775
Net Pension Obligation — End of Year $ 4,440
47
City of Huntington Beach
- Notes to Financial Statements
For the Year Ended September 30, 2008
7. RETIREMENT PLAN — SUPPLEMENTAL (Continued)
The annual required contribution was determined as part of an independent actuarial
valuation using the Entry Age Normal Actuarial Cost Method which is a projected
benefit full-cost method which takes into account those benefits that are expected to
be earned in the future as well as those already accrued. The actuarial assumptions
used were:
• Rate of return on present and future assets - 5.5% per annum
• Projected salary increases for covered employees due to inflation - 3.0% per
annum
• Projected salary increases due to merit - 0%
• Inflation rate - 3.0%
• Post employment benefit increases - 0%
• Amortization of unfunded liability- level percentage of pay ending in 2027 (closed)
• Actuarial value of assets - market value
d. Trend Information
Below is the required three-year trend information (dollar amounts in thousands):
Annual Pension Percentage of Net Pension
Fiscal Year Cost APC Funded Obligation
2005/06 $2,851 138% $6,548
2006/07 $2,691 166% $4,775
2007/08 $3,292 110% $4,440
Below is other required trend information (dollar amounts in thousands):
Fiscal Year Annual Percentage
Ending Required of ARC
September 30 Contribution Contributed
2006 3,022 130%
2007 2,850 157%
2008 3,419 106%
e. Funded Status and Funding Progress
Below is the funding progress based on the September 30, 2008 actuarial valuation
update (dollar amounts in thousands):
Entry Age
Normal Accrued Actuarial Value Unfunded AAL UAAL as a%of
Liability of Assets (UAAL) Funded Ratio Covered Payroll Covered Payroll
$ 52,777 $ 22,722 $ 30,055 43.1% $ 78,777 -38.2%
48
" City of Huntington Beach
Notes to Financial Statements
;- For the Year Ended September 30, 2008
7. RETIREMENT PLAN — SUPPLEMENTAL (Continued)
The schedule of funding progress presented as RSI following the notes to the basic
financial statements, presents multiyear trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
f. Accounting for Plan
Since the City is required to adopt GASB 25 for the supplemental pension plan, the
difference between the ARC and the amount of pension cost funded for the years in
which there was an actuarial study must be recorded as a liability in the government-
wide financial statements. The amount of this liability is $4,440,000. Benefits are
recognized when due and payable (see Note 11).
8. POST-EMPLOYMENT MEDICAL INSURANCE
a. Plan Description
The City agreed, via contract, with each employee association to provide post-
employment medical insurance to retirees. These Other Post Employment Benefits
(OPEB) are based on years of service and are available to all retirees who meet all
three of the following criteria:
• At the time of retirement the employee is employed by the City
• At the time of retirement the employee has a minimum of ten years of service
credit or is granted a service connected disability retirement
• Following official separation from the City, CalPERS grants a retirement
allowance
The City's obligation to provide the benefits to a retiree ceases when either of the
following occurs:
• During any period the retiree is eligible to receive health insurance at the expense
of another employer
• The retiree becomes eligible to enroll automatically or voluntarily in Medicare
The maximum subsidy a retiree is entitled to is $344 per month after 25 years of
service. If a retiree dies, the benefits that would be payable for his or her insurance
are provided to the spouse or family for 18 months. Benefits for insurance premiums
are payable based on the years of service credit for the retiree. The retiree may use
the subsidy for any of the medical insurance plans that the City's active employees
may enroll.
49
City of Huntington Beach
(Votes to Financial Statements
For the Year Ended September 30, 2008
8. POST-EMPLOYMENT MEDICAL INSURANCE (Continued)
b. Accounting and Funding
The City implemented Governmental Accounting Standards Board Statement 45 for
2007/08 fiscal year and conducted an actuarial study to determine all of the required
disclosures. The City utilized the California Employers' Retiree Benefit Trust
(CERBT) to establish the trust for the benefit. In prior years, the City had prefunded
these benefits and recorded the amounts in an agency fund. During the year,
$10,341,000 was transferred to the CERBT. Benefits paid from the CERBT were
$1,969,000. The assets of the CERBT are excluded from the accompanying financial
statements since they are in an irrevocable trust. The City's policy is to make 100%of
each year's ARC. Actuarial assumptions were:
• Entry age normal — 30 year amortization of unfunded liabilities
• Discount rate — 7.75%
• All other retirement assumptions equivalent to CalPERS assumptions used for the
City's normal retirement plan
Below are the required disclosures for this plan in thousands):
Actuarial Accrued liability $23,470
Normal Cost $843
Assets $8,730
Funded Status 37.2%
The City's actual contributions, annually required contribution (ARC), Net OPEB
obligation/asset (NOO/NOA), and Annual OPEB Cost (AOC) were computed as
follows (in thousands):
Employer Contributions to CERBT $ 8,895
Direct Contributions—CALPERS and city health plan contributions 678
Implicit subsidy 768
Total Actual contributions $ 10,341
Annual Required Contribution (ARC)
Amortization of Actuarially Accrued Liability $ 1,298
Normal Cost 816
Total ARC—Equal to AOC $ 2,114
Development of NOO/ NOA
NOO, beginning of year $ -
AOC 2,114
Employer Contribution (10,341)
NOA $ (8,227)
50
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
8. POST-EMPLOYMENT MEDICAL INSURANCE (Continued)
The City's actual contributions exceed the annually required contribution by
$8,227,000. The excess contribution, or other postemployment benefits asset, is
reported as a governmental activity on the government-wide financial statements.
The actual contributions of $10,341,000 and annual required contribution of
$2,114,000 is reported as revenue and expenses in the non-departmental
governmental activities program.
c. Other Disclosures
Three-year trend information is disclosed below (in thousands)
Annual OPEB
Cost (AOC) Percentage of Net OPEB
(Employer Actual AOC Obligation
Fiscal Year Contribution) Contribution Contributed Asset
9/30/06 N/A N/A N/A N/A
9/30/07 N/A N/A N/A N/A
9/30/08 $2,114 $10,341 489.2% ($8,227)
d. Funding Status and Funding Progress
As of June 30, 2008, the most recent actuarial valuation date, the plan was 37.2%
funded. The actuarial accrued liability for benefits was $23.5 million, and the
actuarial value of assets was $8.7 million, resulting in an unfunded accrued liability
(UAAL) of $14.7 million. The covered payroll (annual payroll of active employees
covered by the plan) was $78.8 million, and the ratio of the UAAL to the covered
payroll was 18.7%.
The schedule of funding progress presented as Required Supplementary Information
following the notes to the basic financial statements, presents multiyear trend
information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits.
51
City of Huntington Beach
Notes to Financial Statements
7 ;; For the Year Ended September 30, 2008
8. POST-EMPLOYMENT MEDICAL INSURANCE (Continued)
e. Annual Medical Inflation ("Trend")
The medical trend rate represents the long-term expected growth of medical benefits
paid by the plan, due to non-age-related factors such as general medical inflation,
utilization, new technology, and the like. The following table sets forth the trend
assumption used for the valuation:
Year Annual Rate
2007/08 11.0%
2008/09 10.0%
2009/10 9.0%
2010/11 8.0%
2011/12 7.0%
2012/13 6.0%
2013/14 5.0%
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan
and the annual required contributions of the City are subject to continual revision as
actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents
multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive
plan (the plan as understood by the City and plan members)and include the types of
benefits provided at the time of each valuation. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
52
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
9. RISK MANAGEMENT
The City is exposed to various risks of losses related to torts; theft of, damage to and
destruction of assets; errors and omissions; injuries to employees, and natural disasters.
The City records all of these claims as expenditures in the General Fund. The liability for
these claims is recorded as part of long-term obligations in the government-wide financial
statements. The City records the amount of claims payable at year-end that is due and
payable at year-end in the fund financial statements. The full amount of claims is
reported as a liability in the government-wide financial statements. Liabilities include
amounts incurred, but not reported.
Liability Claims
Claims of up to $1,000,000 are paid from the General Fund. The City is also a
participant in the Big Independent Cities Excess Pool Joint Powers Authority (BICEP),
which shares payments for claims between $1,000,000 and $2,000,000. It also provides
general liability insurance of $25,000,000 above the City's retention of $1,000,000.
BICEP was created by a joint powers agreement between the City of Huntington Beach
and four other local entities for the purpose of providing joint insurance coverage and
related risk management services or member cities. BICEP allows member entities to
finance claims payment pool for certain liability claims in excess of$1,000,000 million to
a limit of$27,000,000. BICEP's governing board has one representative from each city
(either a member of the City Council or designate). Current members must approve any
changes to the board. Each participating City pays an insurance premium to BICEP that
is used to fund the operating and debt service requirements. There were no liability
claims in the last three years that exceeded the coverage limit.
Workers' Compensation Claims
Workers' compensation claims of up to $1,000,000 per claim are paid from the General
Fund. The BICEP is a member of CSAC-Excess Insurance Authority for excess workers'
compensation coverage. Payments for claims from $1,000,000 to $5,000,000 are
shared. Payments for claims between $5,000,000 and $200,000,000 are paid by excess
insurance coverage. All funds of the City participate in the program and make payments
to these funds based on estimated cost information.
53
City of Huntington Beach
Notes to Financial Statements
ss: ; For the Year Ended September 30, 2008
9. RISK MANAGEMENT (Continued)
Claims activity and liabilities relating to the current and prior year are (in thousands):
Workers Liability
Compensation Insurance Total
Balance September 30,2006 $ 6,734 $ 3,022 $ 9,756
Additions 1,585 2,772 4,357
Reductions (1,733) (2,184) (3,917)
Net Increase (Decrease) (148) 588 440
Balance September 30,2007 6,586 3,610 10,196
Additions 2,216 2,268 4,484
Reductions (2,298) (550) (2,848)
Net Increase (Decrease) (82) 1,718 1,636
Balance September 30,2008 $ 6,504 $ 5,328 $ 11,832
Below is a reconciliation of the above schedule of total claims payable to the financial
statements(in thousands):
Current Claims Payable- Reported on the Balance Sheet of Both the
Government-Wide and Fund Statements $ 5,464
Claims Payable - Long-Term (Greater than One Year)- Reported in
Government-Wide Statements, but not in Fund Statements 6,368
Total $ 11,832
54
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
10.INTERFUND TRANSACTIONS
a. Due To/From Other Funds
The amounts at Year-end were (in thousands):
Due from Other Due to Other
Funds Funds
Major Governmental Funds
Redevelopment Agency Capital Projects $ 956 $ -
Redevelopment Agency Debt Service - 956
Other Governmental Funds
Gas Tax 718 -
Special Library - 51
Drainage - 667
Total Due to/from Governmental Funds $ 1,674 $ 1,674
These outstanding balances result mainly from short-term borrowings to cover
payments for goods and services.
b. Advances to/from Other Funds
The amounts at Year-end were (in thousands):
Advances to Advances from
Other Funds Other Funds
Major Governmental Funds
General Fund $ 1,321 $ -
Redevelopment Agency Capital Projects 302 1,363
Redevelopment Agency Debt Service - 302
Low-Income Housing Capital Projects 1,363 -
Other Governmental Funds
Park Acquisition and Development - 1,321
Total Due to/from Governmental Funds $ 2,986 $ 2,986
There is a $1,321,000 advance from the General Fund to the Park Acquisition and
Development Fund (a non-major governmental fund) for closed school site
purchases. The amount will be repaid in within fiscal year ending September 30,
2012.
There is a $1,363,000 advance from the Low-Income Housing Fund to the
Redevelopment Agency Capital Projects Fund for Educational Revenue
Augmentation Fund payments and Main Pier property acquisitions. There are no
scheduled repayments for this advance.
55
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
10.INTERFUND TRANSACTIONS (Continued)
There is a$302,000 advance from the Redevelopment Agency Capital Projects Fund
to the Redevelopment Agency Debt Service Fund for the Southeast Coastal Project
Area. There are no scheduled repayments for this advance.
c. Transfers In/Out
The amounts at Year-end were (in thousands):
Transfers Out
Other Total
Grants Special RDA 7DebRDA Capital Governmental Governmental
Transfers In General Fund Revenue ServicProjects Fund Funds Funds
General Fund $ $ 820 $ 4,000 $ $ 1,142 $ 5,962
Low Income Housing Fund - 3,405 - 3,405
Grants 25 267 1,268 1,560
Other Governmental Funds 7,335 70 17 256 7,678
Total Governmental Funds 7,360 1,087 7,475 1,285 1,398 18,605
Refuse Fund 51 - 51
Total Transfers Out $ 7,411 $ 1,087 $ 7,475 $ 1,285 $ 1,398 $ 18,656
Transfer Out
Total Other
Governmental Enterprise Total Transfers
Transfers In Funds d I In
General Fund $ 5,962 $ 5,359 $ 11,321
Low Income Housing Fund 3,405 - 3,405
Grants 1,560 - 1,560
Other Governmental Funds 7,678 314 7,992
Total Governmental Funds 18,605 5,673 24,278
Refuse Fund 51 51
Total Transfers Out $ 18,656 $ 5,673 $ 24,329
The following is a summary of the significant transfers:
• $7,335,000 was transferred from the General Fund to Other Governmental Funds
primarily for debt service payments
• $4,000,000 was transferred from the Redevelopment Agency Debt Service Fund
to the General Fund to repay the General Fund Loan to the Redevelopment
Agency
• $3,405,000 was transferred from the Redevelopment Agency Debt Service Fund
to the Low Income Housing Fund to comply with the twenty percent set-aside to
Low Income Housing
• $5,359,000 was transferred from other enterprise funds to the General Fund for
funds that were closed
56
City of Huntington Beach
Notes to Financial Statements
-,.— For the Year Ended September 30, 2008
10. INTERFUND TRANSACTIONS (Continued)
Below is a reconciliation between the amounts in the above table to amounts in the
accompanying government-wide financial statements (in thousands):
Governmental Funds
Transfer In $ 24,278
Transfer Out (18,656)
Net Transfer In - Governmental Funds 5,622
Capital Asset Transfer In from Other Enterprise Funds 3,972
Net Transfer In - Governmental Activities $ 9,594
Other Enterprise Funds
Transfer In $ 51
Transfer Out (5,673)
Net Transfer Out - Other Enterprise Funds (5,622)
Capital Asset Transfer Out to Governmental Activities (3,972)
Net Transfer Out - Business Type Activities $
Capital assets of$3,972,000 were transferred from other enterprise funds, including
the Emergency Fire Medical Fund and the Ocean View Estates Fund, to
Governmental Activities on the government-wide financial statements. These
enterprise funds were closed as of year-end.
57
" City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS
Below is a schedule of changes in long-term governmental obligations for the year (in
thousands):
October 1, September 30, Accrued
Governmental Activities: 2007 Additions Retirements 2008 Interest Due Within One Year
Judgment Obligation Bonds $ 10,795 $ $ (745) $ 10,050 $ 246 $ 765
Public Financing Authority:
1997 Leasehold Revenue Bonds 3,025 (80) 2,945 133 85
2000 Certificates of Participation 14,215 (700) 13,515 60 730
2001-a Lease Revenue Bonds 27,750 (675) 27,075 107 700
2001-b Lease Revenue Bonds 21,340 (1,745) 19,595 136 1,800
Total Public Financing Authority 66,330 - (3200) 63,130 436 3,315
Redevelopment Agency:
1999 Tax Allocation
Refunding Bonds 7,790 (380) 7,410 58 390
2002 Tax Allocation
Refunding Bonds 17,095 (845) 16,250 124 870
Mayer Disposition and
Development Agreement 7,101 455 (746) 6,810 - -
Bella Terra OPA(Parking) 14,855 1,030 (1,353) 14,532 - -
Section 108 Loan/Bowen Court 6,895 - (365) 6,530 78 390
Total Redevelopment Agency 53,736 1,485 (3,689) 51,532 260 1,650
Other Long-Term Obligations:
Leases Payable 2,281 - (600) 1,681 - 521
Compensated Absences 11,068 4,277 (3,092) 12253 2,625
Net Pension Obligation 4,775 - (335) 4,440 -
Claims Payable 4,672 2,268 (572) 6,368 -
Total Other Long-Tenn Obligations 22,796 6,545 (4,599) 24,742 - 3,146
Total Long-Tenn Obligations-
Governmental Activities $ 153,657 $ 8,030 $ (12233) $ 149A54 $ 942 $ 8,876
Below are reconciliations from amounts in the above table to amounts in the
accompanying government-wide financial statements (in thousands):
Issuance of Long-Term Debt in Governmental Fund Financial Statements $ -
Increase in Mayer Disposition and Development Agreement 455
Increase in Bella Terra OPA(Parking) 1,030
Increase in Net Pension Obligation -
Increase in Compensated Absences 4,277
Increase in Claims Payable 2,268
Increases in Above Schedule $ 8,030
Principal Paid in Governmental Fund Financial Statements $ 8,234
Decrease in Compensated Absences 3,092
Decrease in Net Pension Obligation 335
Decrease in Claims Payable 572
Decreases in Above Schedule $ 12,233
58
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
a. Judgment Obligation Bonds
Year of Issuance 2004
Type of Debt Jud ment Obligation Bonds
Original Principal Amount $12,500,000
Security Council Appropriations
Interest Rates 2.00% to 4.20%
Interest Payment Dates February 1 st and August 1 st
Principal Payment Dates February 1 st
Purpose of Debt Pay claims on court judgment
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 765 369 1,134
2010 785 346 1,131
2011 810 320 1,130
2012 840 292 1,132
2013 865 260 1,125
2014-2018 4,885 741 5,626
2019 1,100 23 1,123
Total $ 10,050 $ 2,351 $12,401
b. Public Financing Authority
(1) 1997 Public Financing Authority Revenue Bonds
Year of Issuance 1997
Type of Debt Lease Revenue Bonds
Original Principal Amount $8,070,000
Security Lease Agreement with City for
Central Library
Interest Rates 5.00% to 5.50%
Interest Payment Dates June 15 and December 15 th
Principal Payment Dates December 15
Purpose of Debt Construct Pier Plaza and
Purchase 800 MHZ System
59
` City of Huntington Beach
- Notes to Financial Statements
-- For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 85 159 244
2010 90 154 244
2011 95 149 244
2012 100 144 244
2013 105 139 244
2014-2018 610 599 1,209
2019-2023 805 406 1,211
2024-2028 1,055 152 1,207
Total $ 2,945 $ 1,902 $ 4,847
(2) 2000 Public Financing Authority Certificates of Participation
Year of Issuance 2000
Type of Debt Certificates of Participation
® -Original Principal Amount $18,310,000
Security Lease with City
Interest Rates 4.0% to 5.0%
Interest Payment Dates September 1 s and March 1 s
-Principal Payment Dates September 1 s
Purpose of Debt Capital improvements and
defeasance of Emerald Cove
Certificates of Participation
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
September 30
2009 730 714 1,444
2010 760 680 1,440
2011 490 645 1,135
2012 510 622 1,132
2013 535 598 1,133
2014-2018 3,115 2,554 5,669
2019-2023 3,235 1,626 4,861
2024-2028 2,795 848 3,643
2029-2030 1,345 110 1,455
Total $ 13,515 $ 8,397 $21,912
I
60
< ' : City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
(3) 2001(a) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2001
T pe of Debt Lease Revenue Bonds
-Original Principal Amount $31,360,000
Security Lease Agreement with City for
Public Buildings
Interest Rates 2.45% to 5.0%
Interest Payment Dates March 1 S and September 1st
Principal Payment Dates September 1st
Purpose of Debt Construct Sports Complex and
South Beach Phase II
Improvements
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 700 1,288 1,988
2010 725 1,262 1,987
2011 750 1,234 1,984
2012 785 1,204 1,989
2013 815 1,170 1,985
2014-2018 4,640 5,284 9,924
2019-2023 5,835 4,092 9,927
2024-2028 7,425 2,502 9,927
2029-2031 1 5,400 548 5,948
Total 1 $ 27,075 1 $ 18,584 1 $45,659
(4) 2001(b) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2001
Type of Debt Lease Revenue Bonds
Original Principal Amount $31,095,000
Security Lease on Civic Center Buildings
Interest Rates 4.0% to 5.0%
Interest Payment Dates August 1, February 1
Principal Payment Dates August 1
Purpose of Debt Defease Civic Improvement
Corporation Certificates
61
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 1,800 818 2,618
2010 1,880 737 2,617
2011 1,955 662 2,617
2012 2,030 589 2,619
2013 2,110 510 2,620
2014-2018 8,785 1,235 10,020
2019 1,035 52 1,087
Total $ 19,595 1 $ 4,603 $24,198
c. Redevelopment Agency
(1) 1999 Redevelopment Agency Tax Allocation Refunding Bonds
Year of Issuance 1999
-Type of Debt Tax Allocation Refunding Bonds
-Original Principal Amount $10,835,000
-Security Tax Increment
Interest Rates 3.00% to 5.05%
Interest Payment Dates February 1S and August 1S
Principal Payment Dates August 1"
Purpose of Debt Prepay Agency's 1992 Loans to
Public Financing Authority
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 390 350 740
2010 410 334 744
2011 430 317 747
2012 450 298 748
2013 465 278 743
2014-2018 2,705 1,044 3,749
2019-2023 2,200 402 2,602
2024 360 18 378
Total $ 7,410 $ 3,041 $10,451
62
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
(2) 2002 Redevelopment Agency Tax Allocation Refunding Bonds
Year of Issuance 2002
Type of Debt Tax Allocation Refunding Bonds
Original Principal Amount $20,900,000
Security Tax Increment
Interest Rates 2.00% to 5.00%
Interest Payment Dates February 1 st and August 1S
Principal Payment Dates August 1s'
Purpose of Debt Prepay Agency's 1992 Loans to
Public Financing Authority and
fully defease 1992 Public
Financing Authority bonds
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 870 742 1,612
2010 910 712 1,622
2011 945 677 1,622
2012 995 641 1,636
2013 1,040 601 1,641
2014-2018 5,905 2,283 8,188
2019-2023 4,805 875 5,680
2024 780 39 819
Total $ 16,250 $ 6,570 $22,820
(3) Mayer Disposition and Development Agreement
In fiscal year 1996-97, the Agency entered into a disposition and development
agreement with Robert Mayer Corporation (Corporation)concerning additional
development adjacent to the Waterfront Hotel. Under the agreement, the
Corporation would advance payments for the project costs with the Agency
reimbursing up to $16,750,000 of the costs. As of year-end, the Agency
obligation under the agreement amounted to $6,810,000. Project-generated
revenues as available will repay these amounts over the time needed to fully
amortize the advance.
63
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
(4) Bella Terra Parking Structure
In fiscal year 2005-06, the agency entered into an owner participation
agreement with Bella Terra Associates, LLC (formerly Huntington Center
Associates, LLC). Under the agreement, the Corporation would construct
various public improvements, including a parking structure, which would then
be deeded to the City. The Agency would reimburse$15,000,000 of the costs
of the public improvements. As of year-end, the Agency obligation under the
agreement amounted to $14,532,000. Project-generated revenues as
available will repay these amounts over the time needed to fully amortize the
advance.
(5) Section 108 Loan
Year of Issuance 2000
-Type of Debt Loan from Federal Government
-Original Principal Amount $8,570,000
Security Loan Agreement with Federal
Government
Interest Rates 7.7%
Interest Payment Dates February 1st and August 1S
-Principal Payment Dates August 1 S
Purpose of Debt Capital Improvements. Section
108 Loan was made to both the
Agency and the City.
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 390 467 857
2010 415 439 854
2011 445 408 853
2012 970 375 1,345
2013 500 339 839
2014-2018 3,070 1,278 4,348
2019 740 59 799
Total $ 6,530 $ 3,365 $ 9,895
64
City of Huntington Beach
5_ Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
d. Other Long-Term Obligations
(1) Leases Payable
The City entered into capita leases for various items:
Year of Insurance 2001 through 2007
Type of Debt —Capital Leases
Original Principal Amount Various $10,000 to $1,800,000
Security Lease Agreement
Interest Rates 4.2% to 6.9%
Interest Payment Dates Monthly, Quarterly, Semi-Annually
Principal Pa ment Dates Monthly, Quarterly, Semi-Annuall
Pur ose of Debt —Equipment Financing
Future minimum lease payments to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 520 68 588
2010 304 47 351
2011 285 34 319
2012 282 21 303
2013 290 8 298
Total $ 1,681 $ 178
(2) Compensated Absences
There is no repayment schedule to pay the compensated absences amount of
$12,253,000 relating to governmental operations. The General Fund typically
liquidates the vacation and sick leave liability.
(3) Net Pension Obligation
There is no fixed repayment schedule to fund the actuarial liability for the
unfunded net pension obligation totaling $4,440,000 for the City's Retirement
Supplement Plan described in Note 7. The amount will be funded through a
contribution rate determined by an independent actuarial study (see note 7).
65
City of Huntington Beach
Notes to Financial Statements
- - For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
(4) Claims Payable
There is no repayment schedule for the claims payable of $6,368,000
described in note 9. The City pays the claims upon final settlement.
e. Long-Term Obligations — Business Activities
Below is a schedule of the long-term obligations of business activities (in thousands):
October 1, September Accrued Due Within
Long-Term Obligations-Business Activities: 2007 Additions Retirements 30,2008 Interest One Year
Compensated Absences $ 1,059 $ 291 $ (272) $ 1,078 $ $ -
Leases Payable 12 - (3) 9 3
Total Long-Term Obligations-
Business Activities $ 1,071 $ 291 $ (275) $ 1,087 $ $ 3
1) Compensated Absences
There is no repayment schedule for the compensated absences amount of
$1,078,000 relating to business activities.
(2) Leases Payable
The City entered into capital leases for various items:
Year of Issuance 2005
-Type of Debt Capital Lease
-Original Principal Amount $15,268
-Security Lease Agreement
Interest Rates 6.9%
Interest Payment Dates Monthly
-Principal Payment Dates Monthly
Purpose of Debt Equipment Financing
Future minimum lease payments to maturity are (in thousands):
Year Ending Principal Interest Total
September 30
2009 3 1 4
2010 3 3
2011 3 - 3
Total $ 9 $ 1 $ 10
66
City of Huntington Beach
Notes to Financial Statements
-„ For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
f. Long-Term Obligations for which City is not Liable in any Manner
Community Facilities Districts: (in October 1, September
thousands) 2007 Additions Retirements 30,2008
Community Facilities District No.1990-1
Special Tax Refunding Bonds $ 1,655 $ - $ (95) $ 1,560
Community Facilities District 2000-1
Special Assessment Tax Bonds 14,955 - (295) 14,660
Community Facilities District NO.2002-1
Special Assessment Tax Bonds 4,870 - (25) 4,845
Community Facilities District NO.2003-1
Special Assessment Tax Bonds 24,110 - (465) 23,645
Total Community Facilities Districts 45,590 - (880) 44,710
Residential Redevelopment Bonds 25,500 - 25,500
Total Obligations Not Recorded in
Financial Statements $ 71,090 $ - $ (880) $ 70,210
(1) Community Facilities District 1990-1 2001 Special Tax Refunding Bonds
Year of Issuance 2001
Type of Debt Community Facilities District
Assessment Bonds
Original Principal Amount $2,155,000
Security Special Tax Levies
Interest Rates 4.00% to 5.40%
Interest Payment Dates Aril 1 st and October 1 st
Principal Payment Dates October 1 s
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 100 80 180
2010 100 75 175
2011 110 70 180
2012 110 65 1 175
2013 120 59 179
2014-2018 690 187 877
2019-2021 330 19 349
Total $ 1,560 $ 555 $ 2,115
67
City of Huntington Beach
- - Notes to Financial Statements
Ca ;;A For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
(2) Community Facilities District 2000-1 2001 Special Tax Bonds
Year of Issuance 2001
Type of Debt Community Facilities District
Assessment Bonds
-Original Principal Amount $16,000,000
-Security Special Tax Levies
Interest Rates 3.80% to 6.40%
Interest Payment Dates September 1" and March 1S
-Principal Payment Dates September 1st
Purpose of Debt Public Improvements for Grand
Coast Resort
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 305 928 1,233
2010 325 912 1,237
2011 340 895 1,235
2012 360 876 1,236
2013 380 855 1,235
2014-2018 2,290 3,892 6,182
2019-2023 3,120 3,059 6,179
2024-2028 4,265 1,915 6,180
2029-2031 3,275 431 3,706
Total $ 14,660 $ 13,763 $28,423
(3) Community Facilities District 2002-1 Special Tax Bonds
Year of Issuance 2002
Type of Debt Community Facilities District
Assessment Bonds
-Original Principal Amount $4,900,000
Security Special Tax Levies
Interest Rates 3.80% to 6.20%
Interest Payment Dates March 1stand September 1S
Principal Payment Dates September 1s'
68
" City of Huntington Beach
(Votes to Financial Statements
.;: For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 30 296 326
2010 40 295 335
2011 50 293 343
2012 55 290 345
2013 65 288 353
2014-2018 515 1,371 1,886
2019-2023 905 1,179 2,084
2024-2028 1,460 834 2,294
2029-2032 1,725 282 2,007
Total $ 4,845 $ 5,128 $ 9,973
(4) Community Facilities District 2003-1 Special Tax Bonds
Year of Issuance 2003
Type of Debt Community Facilities District
Assessment Bonds
Original Principal Amount $25,000,000
Security Special Tax Levies
Interest Rates 2.65% to 5.85%
Interest Payment Dates March 1" and September 1s
Principal Payment Dates September 1"
Debt service requirements to maturity are (in thousands):
Year Ending principal Interest Total
September 30
2009 485 1,323 1,808
2010 500 1,305 1,805
2011 520 1,284 1 1,804
2012 545 1,263 1,808
2013 570 1,236 1,806
2014-2018 3,305 5,728 9,033
2019-2023 4,330 4,698 9,028
2024-2028 5,750 3,281 9,031
2029-2033 7,640 1,391 9,031
Total $ 23,645 $21,509 $45,154
69
" City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
11. LONG-TERM OBLIGATIONS (Continued)
(5) Residential Development Bonds
The City is involved in various bond issues where the City or Redevelopment
Agency issued bonds to assist in the financing of residential developments. A
trustee holds all funds and payment cannot be made from any other source
than the mortgages received.
These bond issues are in thousands):
Outstanding Original Issue
Bond Issue Yearend Amount
Five Points Senior Project Multi-Family Housing $9,500 $9,500
Revenue Bonds — Series A— 1991
Huntington Breakers Mortgage Revenue Bonds $16,000 $16,000
Refunding Issue — 1996 Series A
Total $25,500 $25,500
70
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
12. CAPITAL ASSETS
a. Changes in Capital Assets
Capital asset activity for the year was (in thousands):
October 1, September 30,
Governmental Activitites 2007 Additions Dispositions 2008
Capital Assets, Not Depreciated:
Land $ 360,971 5,371 - $ 366,342
Construction in Progress 3,929 3,118 (420) 6,627
Joint Ventures 1,498 225 - 1,723
Total Capital Assets-Not Depreciated 366,398 8,714 (420) 374,692
Capital Assets Being Depreciated
Buildings 138,765 560 (1,290) 138,035
Machinery and Equipment 60,478 3,932 (17,584) 46,826
Infrastructure 300,831 10,757 (1,633) 309,955
Total Capital Assets Being Depeciated 500,074 15,249 (20,507) 494,816
Less Accumulated Depreciation:
Buildings (33,477) (2,842) 603 (35,716)
Machinery and Equipment (40,583) (3,182) 11,788 (31,977)
Infrastructure (158,991) (6,106) 1,279 (163,818)
Total Accumulated Depreciation (233,051) (12,130) 13,670 (231,511)
Total Depreciated-Net 267,023 3,119 (6,837) 263,305
Total Capital Assets 866,472 23,963 (20,927) 869,508
Total Accumulated Depreciation (233,051) (12,130) 13,670 (231,511)
Capital Assets of Governmental Activitites-Net $ 633,421 $ 11,833 $ (7,257) $ 637,997
October 1, September 30,
Business Activities: 2007 Additions Dispositions 2008
Capital Assets, Not Depreciated:
Land $ 7,840 - (2,644) $ 5,196
Construction in Progress 10,786 1,425 - 12,211
Total Capital Assets -Not Depreciated 18,626 1,425 (2,644) 17,407
Capital Assets Being Depreciated
Buildings 48,114 76 (1,284) 46,906
Machinery and Equipment 12,550 1,528 (4,954) 9,124
Infrastructure 113,100 5,843 (105) 118,838
Total Capital Assets Being Depeciated 173,764 7,447 (6,343) 174,868
Less Accumulated Depreciation:
Buildings (11,460) (1,322) 823 (11,959)
Machinery and Equipment (6,268) (2,590) 4,087 (4,771)
Infrastructure (54,776) (2,194) 105 (56,865)
Total Accumulated Depreciation (72,504) (6,106) 5,015 (73,595)
Total Depreciated-Net 101,260 1,341 (1,328) 101,273
Total Capital Assets 192,390 8,872 (8,987) 192,275
Total Accumulated Depreciation (72,504) (6,106) 5,015 (73,595)
Capital Assets of Governmental Activitites-Net $ 119,886 $ 2,766 $ (3,972) $ 118,680
71
City of Huntington Beach
- Notes to Financial Statements
For the Year Ended September 30, 2008
12. CAPITAL ASSETS (Continued)
b. Depreciation Expense
Depreciation in governmental activities was charged to the following
functions/programs in the Statement of Activities (in thousands)
Department:
City Administrator $ 22
City Treasurer 21
City Clerk 15
Finance 23
Building and Safety 205
Fire 734
Information Services 103
Police 597
Community Services 1,482
Library Services 376
Public Works 7,568
Non-Departmental 984
Total $ 12,130
Depreciation in business activities was charged to the following functions/programs in
the Statement of Activities (in thousands):
Fund:
Water $ 4,378
Sewer Service 1,233
Fire Medical Program 402
Oceanview Estates 11
Emerald Cove 82
Total $ 6,106
72
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
12. CAPITAL ASSETS (Continued)
c. Capital Assets Acquired via Capital Leases
At year-end, the City's assets acquired through outstanding capital leases (see note
11) were (in thousands):
Governmental
Activities
Machinery and Equipment $ 1,869
Buildings 3,449
Less: Accumulated Depreciation (699)
Total $ 4,619
13. COMMITMENTS AND CONTINGENCIES
a. Legal Actions
There are legal actions pending against the City resulting from normal operations. In
the opinion of management and the City Attorney, the financial resolution of these
actions should not have a significant impact on these financial statements.
b. Sales Tax Sharing Agreements
City Council agreed to provide sales tax rebates to various companies. The sales tax
rebates serve to attract and retain various companies in the City of Huntington
Beach. City Council also agreed to pay increased sales tax revenues relating to the
development of a new commercial site by Home Depot to the Huntington Beach
Union High School District. The City of Huntington Beach has sales tax agreements
that extend until 2017. Sales tax rebates total $528,000 in fiscal year ending
September 30, 2008.
c. Disposition and Development and Owner Participation Agreements
Implementation of disposition and development agreement (DDA) and Six
Implementation Agreement (Agreements) between the CIM Group, LLC (CIM), and
the Redevelopment Agency(Agency)were entered into from June 1999 to November
73 �
City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
13. COMMITMENTS AND CONTINGENCIES (Continued)
2008. The Agreements allowed for the development of a hotel, retail and restaurant,
and a public parking structure. The project costs for infrastructure are to be paid
initially by the developer with the Agency reimbursing the developer a maximum of
$7.9 million from Agency tax increment revenues. The Agency funded $950,000 (a
reduction from the $1,500,000)for development of additional/surplus parking spaces.
Subsequent to year-end the City Council approved the Sixth Implementation
Agreement, as detailed in Note 15, included an additional one time payment of$2.4
million from the Agency to CIM for the development of the hotel and $950,000 for
additional parking spaces beyond what was funded prior by the Agency.
On September 2, 2003, the Redevelopment Agency Approved a Cooperation
Agreement Regarding Capital Improvements in the Southeast Coastal
Redevelopment Project with the City. This agreement commits the Redevelopment
Agency to reimburse the City for a number of capital improvement projects to be
undertaken as part of the Five Year Capital Improvement Program in the Southeast
Redevelopment project area starting in FY 2003/04 as they are undertaken.
On October 16, 2006, the Redevelopment Agency approved an Owner Participation
Agreement with Makallon Atlanta Huntington Beach, LLC (also know as Makar) to
develop a 31-acre site in the Main-Pier sub-area of the Huntington Beach
Redevelopment Project (Pacific City). Makar will advance $5,500,000 to the
Redevelopment Agency to fund the Agency's obligation for the Regional Urban
Runoff Treatment System and the Pacific View Drive Extension. The advance will be
repaid over 20 years from tax increment generated from the site.
As of September 30, 2008, the City has no outstanding obligations related to the
disposition and development and owner participation agreements discussed above.
d. Redevelopment Agency Debt to City
The City has advanced money to the Redevelopment Agency for capital
improvements and operations. There is no fixed repayment schedule for these
advances and the Council/Agency has no requirement for the timing of any
repayment. Accordingly, the City has not recorded the advances in the
accompanying financial statements. These advances have been made since 1984
and include direct advances of cash, overhead charges, deferred development fees,
deferred land sales, and interest. Below is a schedule of the activity for the year (in
thousands):
74
.r City of Huntington Beach
Notes to Financial Statements
For the Year Ended September 30, 2008
13. COMMITMENTS AND CONTINGENCIES (Continued)
Amount @ Amount @
10/1/07 Additions Reductions 9/30/08
General Fund
Direct Advances $ 4,235 $ - $ - $ 4,235
Overhead Charges 6,567 - - 6,567
Land Sales 32,833 - - 32,833
Interest 31,956 2,819 (3,699) 31,076
Total General Fund 75,591 2,819 (3,699) 74,711
Sewer Fund
Direct Advances 131 - - 131
Deferred Development Fees 38 - - 38
Interest 219 18 - 237
Total Sewer Fund 388 18 - 406
Drainage Fund
Direct Advances 250 - - 250
Deferred Development Fees 54 - - 54
Interest 430 33 - 463
Total Drainage Fund 734 33 - 767
Park Acquisition and Development Fund
Direct Advances 1,742 - - 1,742
Deferred Development Fees 247 - - 247
Interest 3,102 232 - 3,334
Total Park Acquisition and Development Fund 5,091 232 - 5,323
Water Fund
Direct Advances 1,138 - - 1,138
Interest 2,427 164 - 2,591
Total Water Fund 3,565 164 - 3,729
Total All Funds $ 85,369 $ 3,266 $ (3,699) $ 84,936
The cash repayments are recorded as transfers from the Redevelopment Agency to
the fund receiving the repayment.
75
City of Huntington Beach
- Notes to Financial Statements
For the Year Ended September 30, 2008
14. OTHER INFORMATION
a. Expenditures Exceeding Appropriations
Expenditures exceeded appropriations at the departmental level in the funds shown
(in thousands):
General Fund
Treasury Department $ 2
Fire Department 43
Major Funds
Redevelopment Agency Capital Projects - Public Works 212
Redevelopment Agency Debt Service - Non-Departmental 112
Other Governmental Funds
Transportation - Public Works 83
Cultural Affairs - Community Services 21
Property Tax Refund - Interest 9
Holly Seacliff- Police 2
Bella Terra Parking Structure - Economic Development 109
b. Fund and Accumulated Deficits
The Drainage Special Fund, Special Library Special Revenue Fund, and Bella Terra
Parking Structure Capital Projects Fund have total fund deficits of$667,000, $72,000,
and $104,000, respectively, at year-end. The deficit will be eliminated through
monitoring of expenditures.
15. SUBSEQUENT EVENT
On November 3, 2008, the Agency approved the Sixth Implementation Agreement, as
referenced in the Disposition and Development section of the Commitments and
Contingency Note 13c, to assist in the development of a hotel with a $2.4 million one-
time payment from the Agency to be paid to CIM Group, LLC (CIM). The$7.9 million
loan from CIM to the Agency was modified to come solely from Agency tax increment
revenues. The Parking in Lieu Fund will repay $500,000 and the Agency will repay
$450,000 to CIM for the additional parking spaces.
76
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REQUIRED SUPPLEMENTARY INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
City of Huntington Beach
Required Supplementary Information
Yearend
Budgetary Information
The City Council must annually adopt a budget by September 30 of the prior fiscal year. The
budgeted expenditures become the appropriations to the various departments. The budget includes
estimates for revenue that, along with the appropriations, compute the budgetary fund balance. The
appropriated budget covers substantially all governmental fund expenditures with the exception of
capital improvement projects (capital projects funds) carried forward from prior years, which
constitute a legally authorized non-appropriated budget. The City Council may amend the budget at
any time. The City Administrator may transfer funds from between object purposes (personal
services, operating expenditures, or capital outlay expenditures)within the same department without
changing the total departmental budget. Department heads may transfer funds from like object
categories of the same department. The City Council must approve any changes to departmental
budgets. Expenditures may not exceed appropriations at the departmental level. All unused
appropriations lapse at year-end. During the year the City Council made several supplemental
appropriations with included carryovers of prior year encumbrances all of which were within available
fund balance and estimated revenue amounts.
The City Council adopts governmental fund budgets consistent with generally accepted principles as
legally required. There are no significant non-budgeted financial activities. Revenues for special
revenue funds are budgeted by entitlements, grants and estimates of future development and
economic growth. Expenditures and transfers are budgeted based upon available financial resources.
On or before May 31 of each year, each department submits data to the City Administrator for budget
preparation. Staff prepares the budget by fund, function, and activity. The budget includes information
on past years, current year estimates and requested appropriations for the next fiscal year. Before
August 1, the City Council receives the proposed budget. The City Council holds public hearings and
may amend the budget by a majority vote. Changes to the budget must be within the available
revenues and reserves.
These financial statements show budgetary data for the General, Special Revenue, Capital Projects
and Debt Service Funds. The original budget, revised budget, actual expenditures, and variance
amounts are shown.
The City uses an encumbrance system as an aid in controlling expenditures. When the City issues a
purchase order for goods or services, it records an encumbrance until the vendor delivers the goods
or performs the service. At year-end, the City reports all outstanding encumbrances as reservations
of fund balance in governmental fund types. The City reappropriates these encumbrances into the
new fiscal year.
Below is a schedule of a budget to actual comparison of the General and Grant Fund's Revenues,
and Expenditures (in thousands):
80
Avk
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30,2008
(In Thousands)
General Fund
Variance with
Final Budget
Positive
REVENUES Original Budget Final Budget Actual (Negative)
Property Taxes $65,001 $65,001 $65,110 $ 109
Sales Taxes 26,060 26,060 23,934 (2,126)
Utility Taxes 23,125 23,125 21,591 (1,534)
Other Taxes 14,580 14,646 15,065 419
Licenses and Permits 9,051 9,803 7,831 (1,972)
Fines,Forfeitures and Penalties 4,969 4,969 4,060 (909)
From Use of Money and Property 14,126 14,126 13,875 (251)
Intergovernmental 5,565 5,565 4,509 (1,056)
Charges for Current Service 15,722 15,722 16,019 297
Other 1,212 1,212 1,883 671
Total Revenues 179,411 180,229 173,877 (6,352)
EXPENDITURES
Current:
City Council 305 305 295 10
City Administrator 1,970 1,851 1,588 263
City Treasurer 1,329 1,355 1,357 (2)
City Attorney 2,801 2,809 2,771 38
City Clerk 995 1,067 992- 75
Finance 5,121 5,114 4,792 322
Human Resources 5,778 5,622 4,725 897
Planning 3,093 4,792 3,856 936
Building 4,249 4,546 3,844 702
Fire 26,478 26,595 26,638 (43)
Information Services 6,818 7,125 6,741 384
Police 60,237 60,037 55,808 4,229
Economic Development 1,680 1,776 1,750 26
Community Services 13,853 14,147 13,919 228
Library Services 3,741 4,088 4,018 70
Public Works 21,719 22,673 21,824 849
Non-Departmental 20,557 24,573 21,382 3,191
Debt Service:
Principal 400 600 600 -
Interest 140 140 140 -
Total Expenditures 181,264 189,215 177,040 12,175
Excess(Deficiency)Of Revenues
Over(Under)Expenditures (1,853) (8,986) (3,163) 5,823
OTHER FINANCING SOURCES(USES)
Transfers In 5,636 10,868 11,321 453
Transfers Out (6,866) (8,044) (7,411) 633
Total Other Financing Sources(Uses) (1,230) 2,824 3,910 1,086
Excess Of Revenues And Other Souces
Over(Under)Expenditures And Other Uses (3,083) (6,162) 747 6,909
Fund Balance-Beginning Of Year 43,696 43,696 43,696 -
Fund Balance-End Of Year $ 40,613 $ 37,534 $ 44,443 $ 6,909
81
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Grants
Variance with
Final Budget
Positive
REVENUES Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 441 $ 441 $ 308 $ (133)
From Other Agencies 80 3,179 5,551 2,372
Other 4 4 - (4)
Total Revenues 525 3,624 5,859 2,235
EXPENDITURES
Current:
Planning - 3 3 -
Building - 318 113 205
Fire 86 800 508 292
Police 323 709 587 122
Economic Development 673 2,641 2,193 448
Community Services - 324 207 117
Library Services 103 52 51
Public Works 400 400 147 253
Capital Outlay 4,413 18,523 5,148 13,375
Debt Service:
Principal - 110 110 -
Interest - 240 240 -
Total Expenditures 5,895 24,171 9,308 14,863
Excess Of Revenues Over(Under)
Expenditures (5,370) (20,547) (3,449) 17,098
OTHER FINANCING SOURCES(USES)
Transfers In - 1,560 1,560 -
Transfers Out - (267) (1,087) (820)
Total Other Financing Sources(Uses) 1,293 473 (820)
Excess Of Revenues And Other Sources
Over(Under)Expenditures And Other Uses (5,370) (19,254) (2,976) 16,278
Fund Balance-Beginning of Year 7,387 7,387 7,387 -
Fund Balance-End Of Year $ 2,017 $ (11,867) $ 4,411 $ 16,278
82
CITY OF HUNTINGTON BEACH
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 2008
SCHEDULE OF FUNDING PROGRESS
RETIREMENT PLAN- NORMAL
(In Thousands)
Entry Age Normal Excess Assets Excess Assets as a
Actuarial Actuarial Accrued Actuarial Value of (Unfunded Percentage of
Valuation Date Liability(AAL) Assets Liability) Funded Ratio Covered Payroll Covered Payroll
2003
Safety S 320,670 S 270,538 S (50,132) 84.4% S 28,919 -173.4%
Non Safety 222,221 225,689 3,468 101.6% 36,918 9.4%
Total $ 542,891 $ 496,227 $ (461664) 91.4% $ 65,837 -70.9%
2004
Safety S 339,301 S 280,745 S (58,556) 82.7% S 27,412 -213.6%
Non Safety 234,602 236,189 1,587 100.7% 36,143 4.4%
Total $ 573,903 $ 516,934 $ (56,969) 90.1% $ 63,555 -89.6%
2005
Safety S 356,782 S 296,477 S (60,305) 83.1% S 29,081 -207.4%
Non Safety 253,268 249,443 (3,825) 98.5% 37,343 -10.2%
Total $ 610,050 $ 545,920 $ (64,130) 89.5% $ 66,424 -96.5%
2006
Safety S 382,934 S 316,038 S (66,896) 82.5% S 32,149 -208.1%
Non Safety 271,254 266,642 (4,612) 98.3% 41,263 -11.2%
Total $ 654,188 $ 582,680 $ (71,508) 89.1% $ 73,412 -97.4%
2007
Safety S 409,859 S 338,305 S (71,554) 82.5% S 34,961 -204.7%
Non Safety 295,078 287,302 (7,776) 97.4% 44,249 -17.6%
Total $ 704,937 $ 625,607 $ (79,330) 88.7% $ 79,210 -100.2%
SCHEDULE OF FUNDING PROGRESS
RETIREMENT PLAN-SUPPLEMENTAL
(In Thousands)
Actuarial Entry Age Normal Actuarial Value of Unfunded AAL UAAL as a%of
Valuation Date Accrued Liability Assets (UAAL) Funded Ratio Covered Pavroll Covered Payroll
6/30/96 Actual S 16,071 S 120 $ 16,191) -0.7% S 54,368 -29.8%
6/30/1997 Actual 25,342 2,334 23,008 9.2% 49,881 -46.1%
6/30/98 Update 26,493 3,251 (23,242) 12.3% 48,585 -47.8%
6/30/99 Actual 28,601 4,162 (24,439) 14.6% 50,723 -48.2%
6/30/2000 Update 28,844 5,077 (23,767) 17.6% 57,674 -41.2%
6/30/2001 Actual 36,453 6,678 (29,775) 18.3% 63,345 -47.0%
6/30/2002 Update 35,524 8,775 26,749 24.7% 65,137 -41.1%
6/30/2003 Actual 40,436 10,474 29,962 25.9% 65,227 -45.9%
6/30/2004 Update 40,978 11,936 (29,042) 29.1% 63,538 -45.7%
6/30/2005 Actual 40,873 14,227 (26,646) 34.8% 65,843, -40.5%
9/30/2006 Update 43,066 16,821 (26,245) 39.1% 72,186 -36.4%
9/30/2007 Actual 51,028 20,452 30,576 40.1% 73,380 -41.7%
9/30/2008 Update 52,777 22,722 30,055 43.1% 78,777 -38.2%
OTHER POST EMPLOYMENT BENEFITS - MEDICAL RETIREMENT
SCHEDULE OF FUNDING PROGRESS
(In Thousands)
Unfunded
Actuarial Actuarial Value of Actuarial Accrued Actuarial Accrued UAAL as a%of
Valuation Date Assets Liability Liability Funded Ratio Covered Payroll Covered Payroll
9/30/2008 $ 8,730 $ 23,470 S (14,740) 37.2% $ 78,777 -18.7%
83
SUPPLEMENTARY INFORMATION
tol
84
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■
(,
85
Other Governmental Funds
Special Revenue Funds account for revenues and expenditures legally restricted to a specific purpose.
• The Gas Tax Fund accounts for moneys allocated under the Streets and Highways Code of California. Expenditures may
be made for any street-related purpose allowed under the code.
• The Drainage Fund accounts for fees received from developers to construct and maintain the City's drainage system.
• The Narcotics Forfeiture Fund accounts for moneys received from the State of California for special law enforcement
expenditures.
• The Transportation Fund accounts for moneys received from the countywide'/2 cent sales tax and other specific sources
to be spent on transportation-related expenditures.
• The Air Quality Fund accounts for revenues from the local agencies used to improve local air quality.
• The Traffic Impact Fee Fund accounts for moneys received from the traffic impact fee levied on new developments in the
City.
• The Fourth of July Parade Fund accounts for the activities of the City's annual parade.
• The Special Library Fund accounts for revenues and expenditures related to the expanded Central Library including
some construction.
• The Cultural Affairs Fund accounts revenues and expenditures associated with the City's Art Center.
• The Park Acquisition and Development Fund accounts for fees received from developers to develop and maintain the
City's park system.
• The Highway Safety&Traffic Reduction Fund accounts for moneys used to fund transportation projects, improve the
movement of goods, improve air quality, and enhance the safety and security of the transportation system under the
Highway Safety, Traffic Reduction,Air Quality, and Port Security Bond Act of 2006.
• The Traffic Congestion Relief Fund accounts for moneys allocated for roadway maintenance as established by
Assembly Bill 2928.
Debt Service Funds account for the receipts for and payment of general long-term debt.
• The Property Tax Refund Fund records the payment of claims for repayment of the Judgment Obligation Bonds.
• The Public Financing Authority accounts for the activity of the Huntington Beach Public Financing Authority.
Capital Projects Funds account for the acquisition and construction of capital assets other than those financed by proprietary
fund types.
• The Holly Seacliff Fund accounts for capital improvements made to the Holly Seacliff area.
• The Parking in-lieu Fund records construction activity from developers who pay fees in-lieu of directly providing parking
facilities to the City.
• The Sewer Development Fund accounts for fees received from developers to construct and maintain sewer facilities.
• The Bella Terra Parking Structure Fund accounts for the fees paid by the developer for expenses related to the Bella
Terra Parking Structure.
• The Infrastructure Fund records activity for certain designate infrastructure related expenditures.
1
86
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
(In Thousands)
SPECIAL REVENUE FUNDS
Narcotics
ASSETS Gas Tax Drainage Forfeiture Transportation Air Quality
Cash and Investments $ 567 $ - $ 305 $ 6,051 $ 1,104
Cash and Investments with Fiscal Agent - - - - -
Taxes Receivable 260 - - 377 -
Other Receivables 1,785 - 2 48 9
Due from Other Funds 718 - - - -
Other Assets - - - - -
Total Assets $ 3,330 $ - $ 307 $ 6,476 $ 1,113
LIABILITIES
Accounts Payable $ 967 $ - $ 4 $ 2 $ -
Accrued Payroll 9 - - 9 3
Due to Other Funds - 667 - - -
Advances from Other Funds - - - -
Deposits Payable - - - - -
Total Liabilities 976 667 4 11 3
FUND BALANCES
Reserved for:
Encumbrances 2,354 - 34 3,095 92
Debt Service - - - - -
Total Reserved Fund Balance 2,354 - 34 3,095 92
Unreserved,Designated:
Special Revenue Funds - - 119 1,179 824
Capital Projects Funds - - - -
Council Projects - - - -
Total Unreserved, Designated Fund Balance - - 119 1,179 824
Unreserved,Undesignated:
Special Revenue Funds - (667) 150 2,191 194
Debt Service Funds - - - - -
Capital Projects Funds - - - - -
Total Unreserved, Undesignated Fund Balance - (667) 150 2,191 194
Total Unreserved Fund Balance - (667) 269 3,370 1,018
Total Fund Balances 2,354 (667) 303 6,465 1,110
Total Liabilites and Fund Balances $ 3,330 $ - $ 307 $ 6,476 $ 1,113 (,
87
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
(In Thousands)
(continued)
SPECIAL REVENUE FUNDS
Park Acquisition Highway Safety Traffic
Traffic Impact Fourth of July and &Traffic Congestion Total Special
Fee Parade Special Library Cultural Affairs Development Reduction Relief Revenue Funds
$ 2,762 $ 129 $ - $ - $ 5,211 $ 3,253 $ - $ 19,382
- - - - - - - 637
22 1 - - 39 - 493 2,399
- - - - - - - 718
- - 1,267 - - 1,267
$ 2,784 $ 130 $ - $ - $ 6,517 $ 3,253 $ 493 $ 24,403
$ 521 $ 2 $ 21 $ - $ 46 $ - $ - $ 1,563
7 - - - 5 - - 33
- - 51 - - - - 718
- - 1,321 - - 1,321
1 - - 1,266 - - 1,267
529 2 72 2,638 - - 4,902
2,255 - - 364 - - 8,194
2,255 - - 364 - - 8,194
- _ _ - 3,250 5,372
- - - - 591 - 591
- - - 591 3,250 - 5,963
128 (72) - 2,924 3 493 5,344
128 (72) - 2,924 3 493 5,344
- 128 (72) - 3,515 3,253 493 11,307
2,255 128 (72) - 3,879 3,253 493 19,501
$ 2,784 $ 130 $ - $ - $ 6,517 $ 3,253 $ 493 $ 24,403
88
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
(In Thousands)
(continued)
Debt Service Fund Capital Projects Funds
Property Tax Public Financing Total Debt
ASSETS Refund Authority Service Fund Holly Seacliff Parking in-lieu
Cash and Investments $ 1,672 $ - $ 1,672 $ - $ 1,133
Cash and Investments with Fiscal Agent 2,503 6,808 9,311 - -
Taxes Receivable - - - - -
Other Receivables 27 46 73 - 9
Due from Other Funds - - - - -
Other Assets - - - - -
Total Assets $ 4,202 $ 6,854 $ 11,056 $ - $ 1,142
LIABILITIES
Accounts Payable $ 2 $ 1 $ 3 $ - $ -
Accrued Payroll - - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - - -
Deposits Payable 45 - 45 - -
Total Liabilities 47 1 48
FUND BALANCES
Reserved for:
Encumbrances - - - - -
Debt Service - 6,787 6,787 - -
Total Reserved Fund Balance - 6,787 6,787 - -
Unreserved,Designated:
Special Revenue Funds - - - - -
Capital Projects Funds - - 525
Council Projects - - - - -
Total Unreserved, Designated Fund Balance - - - - 525
Unreserved,Undesignated:
Special Revenue Funds - - - - -
Debt Service Funds 4,155 66 4,221 - -
Capital Projects Funds - - - - 617
Total Unreserved, Undesignated Fund Balance 4,155 66 4,221 - 617
Total Unreserved Fund Balance 4,155 66 4,221 - 1,142
Total Fund Balances 4,155 6,853 11,008 - 1,142
Total Liabilites and Fund Balances $ 4,202 $ 6,854 $ 11,056 $ - $ 1,142
89
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
SEPTEMBER 30, 2008
(In Thousands)
(continued)
Capital Projects Funds
Bella Terra Total Other
Sewer Parking Total Capital Governmental
Development Structure Infrastructure Projects Funds Funds
$ 973 $ 45 $ 3,057 $ 5,208 $ 26,262
- - - - 9,311
- - - 637
8 - 24 41 2,513
- - - - 718
- - - - 1,267
$ 981 $ 45 $ 3,081 $ 5,249 $ 40,708
$ - $ 149 $ - $ 149 $ 1,715
- - - 33
- 718
- - - - 1,321
- - - 1,312
- 149 - 149 5,099
5 - - 5 8,199
- - - 6,787
5 - 5 14,986
- - - - 5,372
976 (104) 1030 2,427 2,427
- - - - 591
976 (104) 1,030 2,427 8,390
- - - - 5,344
- - - 4,221
- - 2,051 2,668 2,668
- - 2,051 2,668 12,233
976 (104) 3,081 5,095 20,623
981 (104) 3,081 5,100 35,609
$ 981 $ 45 $ 3,081 $ 5,249 $ 40,708
90
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Sp ecial Revenue Funds
Narcotics
REVENUES L Gas Tax Drainage Forfeiture Transportation Air Quality
Sales Taxes $ - $ - $ - $ 2,442 $ -
Licenses and Permits - - - - -
From Use of Money and Property 100 - 15 204 42
Intergovernmental 3,955 - 51 - 242
Charges for Current Service - 67 - - -
Other 2 - - 523 -
Total Revenues 4,057 67 66 3,169 284
EXPENDITURES
Current:
Police - - 138 - -
Economic Development - - - - -
Community Services - - - - -
Library Services - - - - -
Public Works 753 - - 240 59
Non-Departmental - - - -
-
CapitalOutlay 5,429 - 83 204 90
Debt Service: -
Principal - - - - -
Interest - - - - -
Total Expenditures 6,182 - 221 444 149
Excess Of Revenues Over
(Under)Expenditures (2,125) 67 (155) 2,725 135
Other Financing Sources(Uses):
Transfers In - - - - -
Transfers Out (900) - - - -
Total Other Financing Sources
Sources(Uses) (900) - - -Net Change in Fund Balances (3,025) 67 (155) 2,725 135
Fund Balance-Beginning Of Year 5,379 (734) 458 3,740 975
Fund Balance-End Of Year $ 2,354 $ (667) $ 303 $ 6,465 $ 1,110
91
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Special Revenue Funds
ar ig way
Acquisiton Safety& Traffic Total Special
Traffic Impact Fourth of July Special Cultural and Traffic Congestion Revenue
Fee Parade Library Affairs Development Reduction Relief Funds
$ - $ - $ 1 $ - $ - $ - $ - $ 2,443
188 33 371 4 225 - - 1,182
10 80 - - 537 3,253 493 8,621
512 130 412 151 428 - - 1,700
4 85 151 52 7 - - 824
714 328 936 207 1,197 3,253 493 14,771
- - - - - - - 138
323 - 414 767 - 1,504
- - 892 - - - - 892
284 - - - - - - 1,336
- - 11 - - 11
4,892 - 13 - 529 - 11,240
5,176 323 905 414 1,307 - - 15,121
(4,462) 5 31 (207) (110) 3,253 493 (350)
- 83 88 - - - 171
(456) (42) - - (1,398)
- (373) 46 - - - (1,227)
(4,462) 5 (342) (161) (110) 3,253 493 (1,577)
6,717 123 270 161 3,989 - - 21,078
$ 2,255 $ 128 $ (72) $ - $ 3,879 $ 3,253 $ 493 $ 19,501
92
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Debt Service Fund Capital Pro'ects Fund
Public
Property Tax Financing Total Debt
REVENUES Refund Authority Service Fund Holly Seacliff Parking In-Lieu
Sales Taxes $ - $ $ - $ - $ -
Licenses and Permits - - - - 90
From Use of Money and Property 182 366 548 - 44
Intergovernmental - - - - -
Charges for Current Service - - - -
Other - - - - -
Total Revenues 182 366 548 - 134
EXPENDITURES
Current:
Police - - - 2 -
Economic Development - - - -
Community Services - - - - -
Library Services - - - - -
Public Works - - - - -
Non-Departmental 2 12 14 -
Capital Outlay - - - 10 -
Debt Service:
Principal 745 3,200 3,945 - -
Interest 389 3,094 3,483 - -
Total Expenditures 1,136 6,306 7,442 12 -
Excess Of Revenues Over
(Under)Expenditures (954) (5,940) (6,894) (12) 134
Other Financing Sources(Uses):
Transfers In 1,025 5,708 6,733 - 17
Transfers Out - - - -
Total Other Financing Sources
Sources(Uses) 1,025 5,708 6,733 - 17
Net Change in Fund Balances 71 (232) (161) (12) 151
Fund Balance-Beginning Of Year 4,084 7,085 11,169 12 991
Fund Balance-End Of Year $ 4,155 $ 6,853 $ 11,008 $ - $ 1,142
93
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Capital Projects Fund
Bella Terra Total Other
Sewer Parking Total Capital Governmental
Development Structure Infrastructure Projects Funds Funds
$ - $ - $ - $ - $ 2,443
2 - - 92 93
37 - 108 189 1,919
13 521 - 534 9,155
190 - - 190 1,890
- - 9 9 833
242 521 117 1,014 16,333
- - - 2 140
634 634 634
- - - 1,504
- - - - 892
2 - - 2 1,338
- - - - 25
50 - 150 210 11,450
- - - - 3,945
- - - - 3,483
52 634 150 848 23,411
190 (113) (33) 166 (7,078)
- - 1,071 1,088 7,992
- - - - (1,398)
- - 1,071 1,088 6,594
190 (113) 1,038 1,254 (484)
791 9 2,043 3,846 36,093
$ 981 $ (104) $ 3,081 $ 5,100 $ 35,609
94
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Gas Tax
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 36 $ 36 $ 100 $ 64
Intergovernmental 7,200 7,200 3,955 (3,245)
Other 2 2 2
TOTAL REVENUES 7,238 7,238 4,057 (3,181)
EXPENDITURES:
Current:
Public Works 1,156 1,276 753 523
Capital Outlay 2,700 9,551 5,429 4,122
TOTAL EXPENDITURES 3,856 10,827 6,182 4,645
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,382 (3,589) (2,125) 1,464
OTHER FINANCING SOURCES(USES):
Transfers Out (1,156) (1,156) (900) 256
NET CHANGE IN FUND BALANCE 2,226 (4,745) (3,025) 1,720
FUND BALANCE-BEGINNING OF YEAR 5,379 5,379 5,379 -
FUND BALANCE-END OF YEAR $ 7,605 $ 634 $ 2,354 $ 1,720
Drainage
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 27 $ 27 $ - $ (27)
Charges for Current Service 50 50 67 17
TOTAL REVENUES 77 77 67 (10)
FUND BALANCE-BEGINNING OF YEAR (734) (734) (734) -
FUND BALANCE-END OF YEAR $ (657) $ (657) $ (667) $ (10)
95
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Narcotics Forfeiture
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 15 $ 15 $ 15 $ -
Intergovernmental 50 50 51 1
TOTAL REVENUES 65 65 66 1
EXPENDITURES:
Current:
Police 250 250 138 112
Capital Outlay 150 197 83 114
TOTAL EXPENDITURES 400 447 221 226
NET CHANGE IN FUND BALANCE (335) (382) (155) 227
to FUND BALANCE-BEGINNING OF YEAR 458 458 458 -
FUND BALANCE-END OF YEAR $ 123 $ 76 $ 303 $ 227
Transportation
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Sales Taxes $ 2,400 $ 2,400 $ 2,442 $ 42
From Use of Money and Property 122 122 204 82
Other 2 2 523 521
TOTAL REVENUES 2,524 2,524 3,169 645
EXPENDITURES:
Current:
Public Works 157 157 240 (83)
Capital Outlay 4,050 4,204 204 4,000
TOTAL EXPENDITURES 4,207 4,361 444 3,917
NET CHANGE IN FUND BALANCE (1,683) (1,837) 2,725 4,562
FUND BALANCE-BEGINNING OF YEAR 3,740 3,740 3,740 -
FUND BALANCE-END OF YEAR $ 2,057 $ 1,903 $ 6,465 $ 4,562
96
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Air Quality
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 33 $ 33 $ 42 $ 9
Intergovernmental 240 240 242 2
TOTAL REVENUES 273 273 284 11
EXPENDITURES:
Current:
Public Works 92 92 59 33
Capital Outlay 350 557 90 467
TOTAL EXPENDITURES 442 649 149 500
NET CHANGE IN FUND BALANCE (169) (376) 135 511
FUND BALANCE-BEGINNING OF YEAR 975 975 975 -
FUND BALANCE-END OF YEAR $ 806 $ 599 $ 1,110 $ 511
Traffic Impact Fee
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Licenses and Permits $ 12 $ 12 $ - $ (12)
From Use of Money and Property 56 56 188 132
Intergovernmental 5,350 5,350 10 (5,340)
Charges for Current Service 500 500 512 12
Other - - 4 4
TOTAL REVENUES 5,918 5,918 714 (5,204)
EXPENDITURES:
Current:
Public Works 748 912 284 628
Capital Outlay 4,601 12,644 4,892 7,752
TOTAL EXPENDITURES 5,349 13,556 5,176 8,380
EXCESS OF REVENUES OVER
(UNDER EXPENDITURES) 569 (7,638) (4,462) 3,176
OTHER FINANCING SOURCES(USES):
Transfers In 185 185 - (185)
Transfers Out (425) (425) - 425
TOTAL OTHER FINANCING SOURCES(USES) (240) (240) 240
EXCESS OF REVENUES AND OTHER SOURCES
OVER(UNDER) EXPENDITURES AND OTHER USES 329 (7,878) (4,462) 3,416
FUND BALANCE-BEGINNING OF YEAR 6,717 6,717 6,717 -
FUND BALANCE-END OF YEAR $ 7,286 $ (1,161) $ 2,255 $ 3,416
97
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Fourth of July Parade
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 4 $ 4 $ 33 $ 29
Intergovernmental - - 80 80
Charges for Current Service - - 130 130
Other 400 400 85 (315)
TOTAL REVENUES 404 404 328 (76)
EXPENDITURES:
Community Services 400 408 323 85
NET CHANGE IN FUND BALANCE 4 (4) 5 9
FUND BALANCE-BEGINNING OF YEAR 123 123 123
FUND BALANCE-END OF YEAR $ 127 $ 119 $ 128 $ 9
Special Library
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Sales Taxes $ - $ - $ 1 $ 1
Licenses and Permits - - 1 1
From Use of Money and Property 429 429 371 (58)
Charges for Current Service 947 947 412 (535)
Other 150 150 151 1
TOTAL REVENUES 1,526 1,526 936 (590)
EXPENDITURES:
Current:
Library Services 1,071 1,071 892 179
Capital Outlay - 13 13 -
TOTAL EXPENDITURES 1,071 1,084 905 179
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 455 442 31 (411)
OTHER FINANCING SOURCES(USES):
Transfers In - 83 83 -
Transfers Out (465) (465) (456) 9
TOTAL OTHER FINANCING SOURCES(USES) (465) (382) (373) 9
NET CHANGE IN FUND BALANCE (10) 60 (342) (402)
FUND BALANCE-BEGINNING OF YEAR 270 270 270 -
FUND BALANCE-END OF YEAR $ 260 $ 330 $ (72) $ (402)
98
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Cultural Affairs
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 17 $ 17 $ 4 $ (13)
Charges for Current Service 189 189 151 (38)
Other 82 82 52 (30)
TOTAL REVENUES 288 288 207 (81)
EXPENDITURES:
Current:
Community Services 392 393 414 (21)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (104) (105) (207) (102)
OTHER FINANCING SOURCES(USES):
Transfers In 88 88 88 -
Transfers Out - (64) (42) 22
TOTAL OTHER FINANCING SOURCES(USES) 88 24 46 22
NET CHANGE IN FUND BALANCE (16) (81) (161) (80)
FUND BALANCE-BEGINNING OF YEAR 161 161 161 -
FUND BALANCE-END OF YEAR $ 145 $ 80 $ - $ (80)
Park Acquisition and Development
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 96 $ 96 $ 225 $ 129
Intergovernmental - - 537 537
Charges for Current Service 645 645 428 (217)
Other 12 12 7 (5)
TOTAL REVENUES 753 753 1,197 444
EXPENDITURES:
Current:
Community Services 1,015 1,597 767 830
Public Works 205 205 - 205
Non-Departmental - 11 11 -
CapitalOutlay 1,153 3,190 529 2,661
TOTAL EXPENDITURES 2,373 5,003 1,307 3,696
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (1,620) (4,250) (110) 4,140
OTHER FINANCING SOURCES(USES):
Transfers Out (294) (294) - 294
NET CHANGE IN FUND BALANCE (1,914) (4,544) (110) 4,434
FUND BALANCE-BEGINNING OF YEAR 3,989 3,989 3,989 -
FUND BALANCE-END OF YEAR $ 2,075 $ (555) $ 3,879 $ 4,434
99
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(in Thousands)
(continued)
Highway Safety &Traffic Reduction
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Intergovernmental $ - $ - $ 3,253 $ 3,253
FUND BALANCE-BEGINNING OF YEAR - - - -
FUND BALANCE-END OF YEAR $ - $ - $ 3,253 $ 3,253
Traffic Congestion Relief
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Intergovernmental $ - $ - $ 493 $ 493
FUND BALANCE-BEGINNING OF YEAR - - - -
FUND BALANCE-END OF YEAR $ - $ $ 493 $ 493
100
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Property Tax Refund
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 175 $ 175 $ 182 $ 7
EXPENDITURES:
Current:
Non-Departmental - 3 2 1
Debt Service:
Principal 745 745 745 -
Interest 380 380 389 (9)
TOTAL EXPENDITURES 1,125 1,128 1,136 (8)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (950) (953) (954) (1)
OTHER FINANCING SOURCES(USES):
Transfers In 1,140 1,140 1,025 (115)
NET CHANGE IN FUND BALANCE 190 187 71 (116)
FUND BALANCE-BEGINNING OF YEAR 4,084 4,084 4,084 -
FUND BALANCE-END OF YEAR $ 4,274 $ 4,271 $ 4,155 $ (116)
Public Financing Authority
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ - $ - $ 366 $ 366
EXPENDITURES:
Current:
Non-Departmental 45 57 12 45
Debt Service:
Principal 3,638 3,200 3,200 -
Interest 2,657 3,095 3,094 1
TOTAL EXPENDITURES 6,340 6,352 6,306 46
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (6,340) (6,352) (5,940) 412
OTHER FINANCING SOURCES(USES):
Transfers In 6,320 6,320 5,708 (612)
NET CHANGE IN FUND BALANCE (20) (32) (232) (200)
FUND BALANCE-BEGINNING OF YEAR 7,085 7,085 7,085 -
FUND BALANCE-END OF YEAR $ 7,065 $ 7,053 $ 6,853 $ (200)
101
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Holly Seacliff
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 1 $ 1 $ - $ (1)
EXPENDITURES:
Current:
Police - - 2 (2)
Capital Outlay - 10 10 -
TOTAL EXPENDITURES - 10 12 (2)
NET CHANGE IN FUND BALANCE 1 (9) (12) (3)
FUND BALANCE-BEGINNING OF YEAR 12 12 12 -
FUND BALANCE-END OF YEAR $ 13 $ 3 $ - $ (3)
Parking in-Lieu
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Licenses and Permits $ 40 $ 40 $ 90 $ 50
From Use of Money and Property 43 43 44 1
TOTAL REVENUES 83 83 134 51
EXPENDITURES:
Current:
Economic Development 20 20 - 20
Debt Service:
Principal 40 40 40
TOTAL EXPENDITURES 60 60 - 60
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 23 23 134 111
OTHER FINANCING SOURCES(USES):
Transfers In - 17 17
EXCESS OF REVENUES AND OTHER SOURCES
OVER(UNDER)EXPENDITURES AND OTHER USES 23 40 151 111
FUND BALANCE-BEGINNING OF YEAR 991 991 991 -
FUND BALANCE-END OF YEAR $ 1,014 $ 1,031 $ 1,142 $ 111
102
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Sewer Development
Variance with
Final Budget
Positive
REVENUES: Original Budget Budget Actual (Negative)
Licenses and Permits $ 2 $ 2 $ 2 $ -
From Use of Money and Property 36 36 37 1
Intergovernmental - - 13 13
Charges for Current Service 150 150 190 40
TOTAL REVENUES 188 188 242 54
EXPENDITURES:
Current:
Public Works - 2 2 -
Capital Outlay 360 413 50 363
TOTAL EXPENDITURES 360 415 52 363
NET CHANGE IN FUND BALANCE (172) (227) 190 417
FUND BALANCE-BEGINNING OF YEAR 791 791 791 -
FUND BALANCE-END OF YEAR $ 619 $ 564 $ 981 $ 417
Bella Terra Parking Structure
Variance with
Final Budget
Positive
REVENUES: Original Budget Final Budget Actual (Negative)
Intergovernmental $ - $ - $ 521 $ 521
EXPENDITURES:
Current:
Economic Development 525 525 634 (109)
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (525) (525) (113) 412
OTHER FINANCING SOURCES(USES):
Transfers In 525 525 - (525)
NET CHANGE IN FUND BALANCE - - (113) (113)
FUND BALANCE-BEGINNING OF YEAR 9 9 9 -
FUND BALANCE-END OF YEAR $ 9 $ 9 $ (104) $ (113)
103
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Infrastructure
Variance with
Final Budget
Positive
REVENUES: Original Budget Budget Actual (Negative)
From Use of Money and Property $ 43 $ 43 $ 108 $ 65
Other - - 9 9
TOTAL REVENUES 43 43 117 74
EXPENDITURES:
Current:
Capital Outlay 150 1,206 150 1,056
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (107) (1,163) (33) 1,130
OTHER FINANCING SOURCES(USES):
Transfers In - 1,071 1,071 -
Transfers Out (746) (746) - 746
TOTAL OTHER FINANCING SOURCES(USES) (746) 325 1,071 746
NET CHANGE IN FUND BALANCE (853) (838) 1,038 1,876
FUND BALANCE-BEGINNING OF YEAR 2,043 2,043 2,043 -
FUND BALANCE-END OF YEAR $ 1,190 $ 1,205 $ 3,081 $ 1,876
104
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Redevelopment Agency Debt Service
Variance with
Final Budget
Positive
REVENUES Original Budget Final Budget Actual (Negative)
Property Taxes $ 16,085 $ 16,085 $ 17,028 $ 943
From Use of Money and Property 148 148 192 44
Other - - 19 19
Total Revenues 16,233 16,233 17,239 1,006
EXPENDITURES
Current:
Economic Development 3,245 3,245 2,316 929
Non-Departmental - - 112 (112)
Debt Service:
Principal 9,619 9,649 3,579 6,070
Interest 3,045 3,015 1,482 1,533
Total Expenditures 15,909 15,909 7,489 8,420
Excess Of Revenues Over(Under)Expenditures 324 324 9,750 9,426
OTHER FINANCING SOURCES(USES):
Transfers Out (8,033) (8,033) (7,475) 558
Excess Of Revenues And Other Sources Over
Net Change in Fund Balance (7,709) (7,709) 2,275 9,984
Fund Balance-Beginning Of Year 1,380 1,380 1,380 -
Fund Balance-End Of Year $ (6,329) $ (6,329) $ 3,655 $ 9,984
Redevelopment Agency Capital Projects
Variance with
Final Budget
Positive
REVENUES Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 1,715 $ 1,715 $ 1,422 $ (293)
Intergovernmental - - 16 16
Other 10 10 1 (9)
Total Revenues 1,725 1,725 1,439 (286)
EXPENDITURES
Current:
City Attorney 150 155 110 45
Economic Development 1,397 3,285 1,973 1,312
Community Services 240 240 36 204
Public Works - 7 219 (212)
Capital Outlay - 12,152 3,910 8,242
Total Expenditures 1,787 15,839 6,248 9,591
Excess Of Revenues Over(Under)Expenditures (62) (14,114) (4,809) 9,305
OTHER FINANCING SOURCES(USES):
Transfers In - 16 - (16)
Transfers Out (1,285) (1,285) -
Total Other Financing Sources(Uses) - (1,269) (1,285) (16)
Net Change in Fund Balance (62) (15,383) (6,094) 9,289
Fund Balance-Beginning Of Year 21,757 21,757 21,757
Fund Balance-End Of Year $ 21,695 $ 6,374 $ 15,663 $ 9,289
105
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
(continued)
Low Income Housing Fund
Variance with
Final Budget
Positive
REVENUES Original Budget Final Budget Actual (Negative)
From Use of Money and Property $ 470 $ 470 $ 505 $ 35
EXPENDITURES
Current:
Economic Development 495 9,300 7,362 1,938
Capital Outlay 2,000 2,000 1,017 983
Total Expenditures 2,495 11,300 8,379 2,921
Excess Of Revenues Over(Under)Expenditures (2,025) (10,830) (7,874) 2,956
OTHER FINANCING SOURCES(USES):
Transfers In 3,948 3,948 3,405 (543)
Net Change in Fund Balance 1,923 (6,882) (4,469) 2,413
Fund Balance-Beginning Of Year 12,666 12,666 12,666 -
Fund Balance-End Of Year $ 14,589 $ 5,784 $ 8,197 $ 2,413
106
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107
Other Enterprise Funds
Enterprise Funds account for operations similar to private businesses. The City's intent is to recover the costs to the
general public through user charges or where the City wished to periodically determine net income.
• The Emerald Cove Housing Fund accounts for the operations of a senior-citizens apartment complex.
• The Emergency Fire Medical Fund accounts for the user-fee portion of the City's paramedic service.
• The Hazmat Service Fund accounts for user fees charged for City's hazardous material program.
• The Ocean View Estates Fund accounts for the operation of the Ocean View Estates Mobile Home Park owned by
the City.
108
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF NET ASSETS
OTHER ENTERPRISE FUNDS
SEPTEMBER 30, 2008
(In Thousands)
Emerald Cove Emergency Fire Ocean View
ASSETS Housing Medical Hazmat Service Estates Total
CURRENT ASSETS:
Cash and Investments $ 2,985 $ $ 233 $ $ 3,218
Other Receivables 23 17 40
TOTAL CURRENT ASSETS 3,008 - 250 3,258
CAPITAL ASSETS:
Land 1,289 - 1,289
Buildings 4,102 4,102
Less Accumulated Depreciation (1,887) (1,887)
TOTAL CAPITAL ASSETS 3,504 - 3,504
TOTAL ASSETS 6,512 - 250 - 6,762
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Accounts Payable 25 - 25
Accrued Payroll - 5 5
Deposits Payable 52 - 52
TOTAL CURRENT LIABILITIES 77 - 5 82
NON-CURRENT LIABILITIES:
Compensated Absences - 24 - 24
TOTAL NON-CURRENT LIABILITIES - - 24 24
TOTAL LIABILITIES 77 - 29 - 106
NET ASSETS:
Invested in Capital Assets 3,504 - 3,504
Unrestricted 2,931 221 3,152
TOTAL NET ASSETS $ 6,435 $ - $ 221 $ - $ 6,656
109
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
OTHER ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2008
(In Thousands)
Emerald Cove Emergency Fire Ocean View
Housing Medical Hazmat Service Estates Total
OPERATING REVENUES:
Rentals $ 1,177 $ - $ - $ 333 $ 1,510
Fees for Service - 6,546 185 - 6,731
Other 3 216 - 4 223
TOTAL OPERATING REVENUES 1,180 6,762 185 337 8,464
OPERATING EXPENSES:
Supplies and Operations 811 6,531 249 106 7,697
Depreciation 82 402 - 11 495
TOTAL OPERATING EXPENSES 893 6,933 249 117 8,192
OPERATING INCOME(LOSS) 287 (171) (64) 220 272
NON-OPERATING REVENUES(EXPENSES):
Interest Income 121 97 17 86 321
TOTAL NON-OPERATING REVENUES(EXPENSES) 121 97 17 86 321
CHANGE IN NET ASSETS BEFORE TRANSFERS 408 (74) (47) 306 593
TRANSFERS:
Transfers Out (314) (4,013) (13) (5,305) (9,645)
TOTAL CHANGE IN NET ASSETS 94 (4,087) (60) (4,999) (9,052)
NET ASSETS-BEGINNING OF YEAR 6,341 4,087 281 4,999 15,708
NET ASSETS-END OF YEAR $ 6,435 $ - $ 221 $ - $ 6,656
110
STATEMENT OF CASH FLOWS
OTHER ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
(In Thousands)
Emerald Cove Emergency Fire Ocean View
Housing Medical Hazmat Service Estates Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers and Users $ 1,189 $ 7,906 $ 185 $ 358 $ 9,638
Cash Paid to Employees for Services - (4,082) (157) (33) (4,272)
Cash Paid to Suppliers of Goods and Services (917) (2,653) (66) (95) (3,731)
Other Operating Items
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES 272 1,171 (38) 230 1,635
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers Out (314) (4,013) (13) (5,305) (9,645)
NET CASH PROVIDED(USED)BY NON CAPITAL
FINANCING ACTIVITIES (314) (4,013) (13) (5,305) (9,645)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Earnings Received 121 97 17 86 321
NET INCREASE(DECREASE)IN CASH
AND CASH EQUIVALENTS 79 (2,745) (34) (4,989) (7,689)
CASH AND CASH EQUIVALENTS-
BEGINNING OF YEAR 2,906 1,877 267 1,885 6,935
CASH AND CASH EQUIVALENTS-END OF YEAR $ 2,985 $ (868) $ 233 $ (3,104) $ (754)
RECONCILIATION OF OPERATING INCOME
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES
Operating Income $ 287 $ (171) $ (64) $ 220 $ 272
ADJUSTMENTS TO RECONCILE OPERATING
INCOME TO NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES
Depreciation 82 402 11 495
Decrease(Increase)in Accounts Receivable 9 1,144 21 1,174
Increase(Decrease)in Accounts Payable (108) (48) - (2) (158)
Increase(Decrease)in Accrued Payroll - (62) 2 (1) (61)
Increase(Decrease)in Deposits 2 - - (19) (17)
Increase(Decrease)in Compensated Absences - (94) 24 - (70)
NET CASH PROVIDED(USED)BY OPERATING
ACTIVITIES $ 272 $ 1,171 $ (38) $ 230 $ 1,635
111
Fiduciary Funds
Fiduciary Funds account for assets held by the City as an agent for other organizations or individuals.
• The General Deposit Fund accounts for the deposit of general monies held by the City for private individuals and
businesses.
• The Community Facilities Districts Funds accounts for the debt service activity of the City's community facilities
district.
• The Huntington Beach Auto Business Improvement District Fund accounts for the activities of the City's
business improvement district.
• The Central Net Fund accounts for the activity of the Central Net Operations Authority.
• The Retiree Medical Insurance Fund accounts for the City's medical retirement program.
112
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113
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF FIDUCIARY FUND NET ASSETS
FIDUCIARY FUNDS
SEPTEMBER 30, 2008
Agency Funds
Community Business Central Net
Facilities Improvement Operations Retiree Medical Total Agency
Assets: General Deposit Districts Districts Authority Insurance Funds
Cash and Investments-
Local Agency Investment Fund $ 520 $ 1,321 $ 146 $ 1,683 $ $ 3,670
Cash with Fiscal Agent - 4,140 - - 4,140
Accounts Receivable,Net - 234 12 246
Total Assets $ 520 $ 5,695 $ 158 $ 1,683 $ - $ 8,056
Liabilities:
Accounts Payable $ - $ - $ 121 $ 18 $ $ 139
Due to Bondholders - 5,695 - - 5,695
Held for others 520 - 37 1,665 2,222
Total Liabilities $ 520 $ 5,695 $ 158 $ 1,683 $ - $ 8,056
114
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR FISCAL YEAR ENDED SEPTEMBER 30, 2008
Balance Balance
October 1,2007 Additions Deletions September 30,2008
General Deposit
Assets:
Cash and Investments $ 562 $ 274 $ (316) $ 520
Total Assets $ 562 $ 274 $ (316) $ 520
Liabilities:
Held for others $ 562 $ 127 $ (169) $ 520
Total Liabilities $ 562 $ 127 $ (169) $ 520
Community Facilities Districts
Assets:
Cash and Investments $ 1,272 $ 6,392 $ (6,343) $ 1,321
Cash with Fiscal Agent 4,264 288 (412) 4,140
Accounts Receivable, Net 147 494 (407) 234
Total Assets $ 5,683 $ 7,174 $ (7,162) $ 5,695
Liabilities:
Accounts Payable $ 1 $ 3,938 $ (3,939) $ -
Due to Bondholders 5,682 13 - 5,695
Total Liabilities $ 5,683 $ 3,951 $ (3,939) $ 5,695
Business Improvement Districts
Assets:
Cash and Investments $ 149 $ 925 $ (928) $ 146
Accounts Receivable, Net 14 268 (270) 12
Total Assets $ 163 $ 1,193 $ (1,198) $ 158
Liabilities:
Accounts Payable $ 11 $ 961 $ (851) $ 121
Held for others 152 - (115) 37
Total Liabilities $ 163 $ 961 $ (966) $ 158
Central Net Operations Authority
Assets:
Cash and Investments $ 1,680 $ 1,856 $ (1,853) $ 1,683
Total Assets $ 1,680 $ 1,856 $ (1,853) $ 1,683
Liabilities:
Accounts Payable $ 14 $ 302 $ (298) $ 18
Held for others 1,666 - (1) 1,665
Total Liabilities $ 1,680 $ 302 $ (299) $ 1,683
Retiree Medical Insurance
Assets:
Cash and Investments $ 7,320 $ 11,783 $ (19,103) $ -
Accounts Receivable, Net 82 2 (84)
Total Assets $ 7,402 $ 11,785 $ (19,187) $
Liabilities:
Accounts Payable $ 1 $ 290 $ (291) $ -
Held for others 7,401 - (7,401) -
Total Liabilities $ 7,402 $ 290 $ (7,692) $ -
115 �
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
ALL AGENCY FUNDS
FOR FISCAL YEAR ENDED SEPTEMBER 30, 2008
(CONTINUED)
Balance Balance
October 1,2007 Additions Deletions September 30,2008
Total-All Agency Funds
Assets:
Cash and Investments $ 10,983 $ 21,230 $ (28,543) $ 3,670
Cash with Fiscal Agent 4,264 288 (412) 4,140
Accounts Receivable, Net 243 764 (761) 246
Total Assets $ 15,490 $ 22,282 $ (29,716) $ 8,056
Liabilities:
Accounts Payable $ 27 $ 5,491 $ (5,379) $ 139
Due to Bondholders 5,682 13 - 5,695
Held for others 9,781 127 (7,686) 2,222
Total Liabilities $ 15,490 $ 5,631 $ (13,065) $ 8,056
116
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117
Statistical Section
This part of the City of Huntington Beach's Comprehensive Annual Report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information say about the City's overall financial health.
Financial Trends-contain trend information to aid the reader understand how the City's financial
performance has changed overtime.
Revenue Capacity-contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity - present information to assess the affordability of the City's current levels of
outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information—offers information to help the reader understand
the environment within which the City's financial activities take place.
Operating Information —contains service and infrastructure data to help the reader understand
how the City's financial report relates to the services the City provides and the activities it performs.
Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year. The City implemented GASB 34 in the 2002 fiscal year; schedules
presenting government-wide information include information beginning in that year.
118
CITY OF HUNTINGTON BEACH
NET ASSETS BY COMPONENT-LAST SEVEN FISCAL YEARS
(In Thousands)
Fiscal Year Ending September 30,
Governmental Activities 2008 2007 2006 2005 2004
Investment in Capital Assets,Net of Related Debt $ 521,654 $ 486,552 $ 472,372 $ 479,897 $ 448,217
Restricted 69,126 73,541 68,381 39,227 61,051
Unrestricted 35,615 59,182 34,269 40,226 (9,278)
Total Governmental Activities Net Assets $ 626,395 $ 619,275 $ 575,022 $ 559,350 $ 499,990
Business-Type Activities
Investment in Capital Assets,Net of Related Debt $ 118,671 $ 119,874 $ 111,651 $ 102,068 $ 92,890
Restricted 32,665 33,546 31,109 34,085 32,968
Unrestricted 57,704 54,822 53,020 41,563 33,664
Total Business-Type Activities Net Assets $ 209,040 $ 208,242 $ 195,780 $ 177,716 $ 159,522
Primary Government
Investment in Capital Assets,Net of Related Debt $ 640,325 $ 606,426 $ 584,023 $ 581,965 $ 541,107
Restricted 101,791 107,087 99,490 73,312 94,019
Unrestricted 93,319 114,004 87,289 81,789 24,386
Total Primary Government Net Assets $ 835,435 $ 827,517 $ 770,802 $ 737,066 $ 659,512
CITY OF HUNTINGTON BEACH
CHANGES IN NET ASSETS -LAST SEVEN FISCAL YEARS
(In Thousands)
Expenses: Fiscal Year Ending September 30,
Governmental Activities: 2008 2007 2006 2005 2004
City Council $ 295 $ 287 $ 271 $ 254 $ 280
City Administrator 1,652 1,442 5,540 1,990 1,188
City Treasurer 1,408 1,088 1,479 1,568 1,541
City Attorney 2,914 2,534 2,317 2,852 2,775
City Clerk 1,020 950 756 685 717
Administrative Services - - - 5,554 6,348
Finance 4,944 4,454 3,306 2,501 -
Human Resources 4,725 4,202 - - -
Planning 3,881 3,098 2,813 2,559 2,396
Building 5,747 4,899 3,930 3,321 2,858
Fire 27,299 27,247 24,787 23,365 20,000
Information Systems 7,311 6,591 7,361 6,806 6,423
Police 58,378 56,988 50,877 47,029 40,686
Economic Development 18,031 9,209 4,977 4,199 19,372
Community Services 18,565 16,482 15,777 13,693 15,735
Library Services 5,607 5,586 41829 4,394 4,138
Public Works 31,246 34,581 49,654 33,018 30,277
Non-Departmental 30,814 15,131 11,263 12,024 4,054
Interest on Long-Term Debt 5,291 5,875 5,575 6,810 6,001
Total Governmental Activities 229,128 200,644 195,512 172,622 164,789
Business-type Activities:
Water Utility 32,701 32,606 28,117 22,349 24,643
Sewer Service 7,120 5,766 3,855 5,924 4,042
Refuse Collection 10,561 10,542 10,289 9,826 9,806
Emerald Cove Housing 893 936 551 399 409
Emergency Fire Medical 6,933 5,347 5,637 5,497 5,605
Cultural Affairs - - - - -
Hazmat Service 249 194 163 141 204
Ocean View Estates 117 84 120 118 62
Total Business Type Activities 58,574 55,475 48,732 44,254 44,771
Total Business and Government Type Activities $ 287,702 $ 256,119 $ 244,244 $ 216,876 $ 209,560
119
CITY OF HUNTINGTON BEACH
NET ASSET ASSETS BY COMPONENT- LAST SEVEN FISCAL YEARS
(In Thousands)
(continued)
Fiscal Year Ending September 30,
Governmental Activities 2003 2002
Investment in Capital Assets,Net of Related Debt $ 446,061 $ 425,967
Restricted 51,261 42,417
Unrestricted (12,924) (10,745)
Total Governmental Activities Net Assets $ 484,398 $ 457,639
Business-Type Activities
Investment in Capital Assets,Net of Related Debt $ 88,884 $ 79,781
Restricted 30,946 31,043
Unrestricted 25,671 23,236
Total Business-Type Activities Net Assets $ 145,501 $ 134,060
Primary Government
Investment in Capital Assets,Net of Related Debt $ 534,945 $ 505,748
Restricted 82,207 73,460
Unrestricted 12,747 12,491
Total Primary Government Net Assets $ 629,899 $ 591,699
CITY OF HUNTINGTON BEACH
CHANGES IN NET ASSETS-LAST SEVEN FISCAL YEARS
(In Thousands)
(continued)
Expenses: Fiscal Year Ending September 30,
Governmental Activities: 2003 2002
City Council $ 267 $ 262
City Administrator 1,587 2,214
City Treasurer 1,341 1,160
City Attorney 2,899 3,634
City Clerk 559 698
Administrative Services 8,357 7,230
Finance - -
Human Resources - -
Planning 3,633 2,658
Building 3,045 3,101
Fire 19,490 19,361
Information Systems 4,401 4,464
Police 41,104 42,187
Economic Development 3,830 3,080
Community Services 9,989 12,440
Library Services 6,721 4,801
Public Works 25,386 28,237
Non-Departmental 25,604 19,725
Interest on Long-Term Debt 6,199 9,438
Total Governmental Activities 164,412 164,690
Business-type Activities:
Water Utility 24,943 27,250
Sewer Service 3,775 2,419
Refuse Collection 9,681 9,178
Emerald Cove Housing 401 405
Emergency Fire Medical 3,765 3,172
Cultural Affairs - 317
Hazmat Service 150 143
Ocean View Estates 58 11
Total Business Type Activities 42,773 42,895
Total Business and Government Type Activities $ 207,185 $ 207,585
120
CITY OF HUNTINGTON BEACH
CHANGES IN NET ASSETS -LAST SEVEN FISCAL YEARS
(In Thousands)
(continued)
Revenues: Fiscal Year Ending September 30,
Governmental Activities: 2008 2007 2006 2005 2004
Charges for Services
City Council $ 103 $ 99 $ 90 $ - $
City Administrator 404 392 1,612 -
City Treasurer 720 698 1,332 -
City Attorney 47 46 43 - -
City Clerk 168 210 95 111
Finance 1,354 1,312 325
Human Resources 1,391 1,347 - -
Planning 1,987 4,223 825 1,024 1,403
Building 4,582 5,450 4,859 5,068 4,513
Fire 1,423 1,267 1,086 1,095 1,183
Information Systems 697 675 641 - -
Police 5,159 4,890 5,355 5,254 1,605
Economic Development 3,001 2,944 505 385 5
Community Services 15,383 15,036 14,644 13,376 12,611
Library Services 851 835 714 714 4,290
Public Works 6,000 5,016 4,784 1,781 4,220
Non-Departmental 239 232 229 - 589
Total Charges for Services 43,509 44,672 37,139 28,808 30,419
Operating Grants 7,684 1,996 917 1,657 6,343
Capital Grants 14,284 5,154 6,893 43,341 7,384
Transfers 9,594 491 464 4,884 -
Total Governmental Activities Program Revenue 75,071 52,313 45,413 78,690 44,146
Business-Type Activities Program Revenue
Water Utility 35,751 37,962 37,946 40,371 40,172
Sewer Service 9,906 7,242 7,873 8,512 6,373
Refuse Collection 10,521 10,550 10,292 9,985 10,412
Emerald Cove Housing 1,180 1,037 960 866 781
Emergency Fire Medical 6,762 6,068 6,145 5,725 5,650
Cultural Affairs - - - - -
Hazmat Service 185 210 182 110 187
Ocean View Estates 337 324 273 263 258
Total Business Type Activities 64,642 63,393 63,671 65,832 63,833
Total Primary Government Program Revenue 139,713 115,706 109,084 144,522 107,979
Net(Expense)Revenue:
Governmental Activities: (154,057) (148,331) (150,099) (93,932) (120,643)
Business-Type Activities 6,068 7,918 14,939 21,578 19,062
Total Net(Expense)Revenue (147,989) (140,413) (135,160) (72,354) (101,581)
General Revenue and Other Changes in Net Assets
Governmental Activities:
Property Taxes 84,016 79,369 66,598 61,466 47,405
Sales Taxes 25,560 30,608 26,448 24,340 28,273
Utility Taxes 21,591 21,479 21,170 20,004 19,424
Other Taxes 15,065 13,776 13,226 14,952 11,365
Use of Money and Property 5,714 7,895 4,310 3,137 3,528
From Other Agencies 6,899 12,689 10,390 8,186 14,406
Participation Payments - 1,564 6,221 12,697 -
Other 2,332 2,696 9,278 8,510 7,328
Total Governmental General Revenue 161,177 170,076 157,641 153,292 131,729
Business-Type Activities:
Transfers (9,594) (491) (464) (4,884) -
Use of Money and Property 4,324 5,035 3,589 1,500 1,085
Total Business-Type Activities General Revenue (5,270) 4,544 3,125 (3,384) 1,085
Total General Revenue and Transfers 155,907 174,620 160,766 149,908 132,814
Changes in Net Assets-Governmental Activities 7,120 21,745 7,542 59,360 11,086
Changes in Net Assets-Business Activities 798 12,462 18,064 18,194 20,147
Net Assets-Beginning of Year 827,517 793,310 745,196 659,512 628,279
Net Assets-End of Year $ 835,435 $ 827,517 $ 770,802 $ 737,066 $ 659,512
121
City of Huntington Beach
CHANGES IN NET ASSETS -LAST SEVEN FISCAL YEARS
(In Thousands)
(continued)
Revenues: Fiscal Year Ending September 30,
Governmental Activities: 2003 2002
Charges for Services
City Council $ $ -
City Administrator 33
City Treasurer - -
City Attorney -
City Clerk 82 46
Finance - -
Human Resources - -
Planning 752 580
Building 3,067 3,940
Fire 1,157 500
Information Systems - -
Police 4,176 4,433
Economic Development 257 -
Community Services 9,433 8,510
Library Services 673 -
Public Works 3,356 1,103
Non-Departmental 5 4,411
Total Charges for Services 22,958 23,556
Operating Grants 1,736 5,063
Capital Grants 6,955 13,039
Transfers - (244)
Total Governmental Activities Program Revenue 31,649 41,414
Business-Type Activities Program Revenue
Water Utility 37,943 59,103
Sewer Service 5,876 4,540
Refuse Collection 9,123 9,182
Emerald Cove Housing 746 707
Emergency Fire Medical 4,103 4,103
Cultural Affairs - 189
Hazmat Service 233 145
Ocean View Estates 245 192
Total Business Type Activities 58,269 78,161
Total Primary Government Program Revenue 89,918 119,575
Net(Expense)Revenue:
Governmental Activities: (132,763) (123,276)
Business-Type Activities 15,496 35,266
Total Net(Expense)Revenue (117,267) (88,010)
General Revenue and Other Changes in Net Assets
Governmental Activities:
Property Taxes 40,633 38,106
Sales Taxes 28,011 -
Utility Taxes 18,310 -
Other Taxes 13,337 55,084
Use of Money and Property 9,923 13,895
From Other Agencies 16,414 20,359
Participation Payments - -
Other 5,491 2,604
Total Governmental General Revenue 132,119 130,048
Business-Type Activities:
Transfers - 244
Use of Money and Property 1,482 2,240
Total Business-Type Activities General Revenue 1,482 2,484
Total General Revenue and Transfers 133,601 132,532
Changes in Net Assets-Governmental Activities (644) 6,772
Changes in Net Assets-Business Activities 16,978 37,750
Net Assets-Beginning of Year 613,565 563,111
Net Assets-End of Year $ 629,899 $ 607,633
122
CITY OF HUNTINGTON BEACH
FUND BALANCES -GOVERNMENTAL FUNDS -LAST TEN FISCAL YEARS
(in Thousands)
(Modified Accrual Basis of Accounting)
Fiscal Year Ending September 30,
2008 2007 2006 2005 2004
General Fund:
Reserved $ 10,967 $ 10,679 $ 7,382 $ 5,915 $ 2,113
Unreserved 33,476 33,017 33,204 32,371 24,219
Total General Fund $ 44,443 $ 43,696 $ 40,586 $ 38,286 $ 26,332
Other Governmental Funds:
Reserved $ 35,445 $ 42,013 $ 25,472 $ 35,458 $ 30,143
Unreserved,Reported in:
Special Revenue Funds 11,307 13,500 20,631 17,833 11,810
Debt Service Funds 5,467 5,484 4,022 3,916 4,434
Capital Projects Funds 15,316 18,286 27,096 16,820 10,242
Total Other Governmental Funds $ 67,535 $ 79,283 $ 77,221 $ 74,027 $ 56,629
Fiscal Year Ending September 30,
2003(b) 2002(a) 2001 2000 1999
General Fund:
Reserved $ 2,757 $ 25,773 $ 23,677 $ 26,115 $ 23,628
Unreserved 12,217 15,972 11,741 17,618 19,291
Total General Fund $ 14,974 $ 41,745 $ 35,418 $ 43,733 $ 42,919
Other Governmental Funds:
Reserved $ 35,470 $ 45,259 $ 81,465 $ 72,056 $ 61,401
Unreserved,Reported in:
Special Revenue Funds 10,399 7,967 21,698 19,073 12,748
Debt Service Funds 10,992 (33,364) 12,969 - -
Capital Projects Funds 8,553 8,637 7,898 11,793 4,968
Total Other Governmental Funds $ 65,414 $ 28,499 $ 124,030 $ 102,922 $ 79,117
Notes:
(a)Beginning with fiscal year 2001/2002,the City implemented the new
reporting model which changed the way in which interfund
advances were reported and resulted in a larger negative fund balance
in the Redevelopment Agency Debt Service fund
(b)In fiscal year 2002-2003 the City changed accounting for
interfund advances and eliminated the advances to/from in each fund.
This results in a smaller reserved fund balance in the General Fund
and eliminates the deficit in the Redevelopment Agency Debt Service Fund
123
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124
CITY OF HUNTINGTON BEACH
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS-LAST TEN FISCAL YEARS
(In Thousands)
(Modified Accrual Basis of Accounting)
Fiscal Year Ending September 30,
2008 2007 2006 2005(d) 2004
REVENUES:
Property Taxes $ 82,138 $ 75,916 $ 69,065 $ 59,716 $ 43,501
Sales Taxes 26,377 26,271 26,448 24,340 28,273
Utility Taxes 21,591 21,479 21,170 20,004 19,424
Other Taxes 15,065 13,776 13,226 13,068 11,365
Licenses and Permits 7,924 10,131 7,432 7,457 7,736
Fines and Forfeitures 4,060 4,165 4,288 4,365 4,342
From Use of Money and Property 18,221 19,796 16,461 12,733 11,856
From Other Agencies 19,231 19,304 16,611 20,179 26,321
Charges for Current Service/Other Revenue 20,645 23,270 27,237 33,950 17,553
TOTAL REVENUES 215,252 214,108 201,938 195,812 170,371
EXPENDITURES
Current:
City Council 295 287 271 254 280
City Administrator 1,588 1,490 5,508 1,917 1,165
City Treasurer 1,357 1,060 1,446 1,547 1,519
City Attorney 2,881 2,526 2,313 2,848 2,771
City Clerk 992 932 828 679 712
Administrative Services - - - 5,731 6,295
Finance 4,792 4,400 3,283 2,501 -
Human Resources 4,725 4,202
Community Development - - - - -
Planning 3,859 3,092 2,800 2,548 2,382
Building 3,957 4,670 3,729 3,291 2,938
Fire 27,146 26,438 24,334 22,365 19,018
Information Systems 6,741 6,437 6,540 5,726 5,315
Police 56,535 55,461 50,151 45,778 39,414
Economic Development 16,228 8,292 4,172 2,866 5,132
Community Services 15,666 14,744 14,382 12,321 11,718
Library Services 4,962 5,097 4,359 3,969 3,745
Public Works 23,528 25,248 28,448 21,535 16,756
Non-Departmental 21,519 12,977 13,831 13,039 23,809
Capital Outlay 21,525 16,142 30,174 9,065 29,484
Debt Service:
Principal 8,234 10,453 9,406 8,474 8,718
Interest 5,345 5,514 6,512 5,999 5,987
TOTAL EXPENDITURES 231,875 209,462 212,487 172,453 187,158
EXCESS(DEFICIENCY)OF
REVENUES OVER(UNDER)
EXPENDITURES (16,623) 4,646 (10,549) 23,359 (16,787)
OTHER FINANCING SOURCES(USES):
Transfers In 24,278 16,313 21,531 20,890 30,274
Proceeds of Bankruptcy Settlements - - - - -
Reclassification of Interfund Advances
Capital Assets Reclassication for Changes in F
Payments to Escrow - - - -
Proceeds of Long-Term Debt 35 15,579 1,102 13,236
Transfers Out (18,656) (15,822) (20,075) (16,006) (24,148)
TOTAL OTHER FINANCING SOURCES(USES; 5,622 526 17,035 5,986 19,362
INCREASE(DECREASE)IN FUND BALANCES $ (11,001) $ 5,172 $ 6,486 $ 29,345 $ 2,575
DEBT SERVICE AS A PERCENTAGE OF
NON-CAPITAL EXPENDITURES 6.9% 9.0% 9.6% 9.7% 10.3%
(c)Community Development was reorganized into two separate departments(Planning and Building). Information Systems
was recorded originally in the Non-departmental area and transferred to a new department.
(d)Finance was originally included with Administrative Services
125
Fiscal Year Ending September 30,
2003 2002 2001 2000 1999(c)
$ 38,983 $ 33,204 $ 36,860 $ 37,645 $ 34,345
28,011 23,449 28,082 26,268 22,699
18,310 18,014 17,045 15,058 14,936
13,337 13,621 15,096 10,868 11,122
8,045 7,162 6,902 8,538 10,527
3,815 3,797 4,092 4,018 2,744
9,923 13,895 15,812 14,603 10,913
25,103 28,426 31,634 32,021 24,753
14,140 15,201 12,150 15,847 14,071
159,667 156,769 167,673 164,866 146,110
269 237 231 277 275
1,559 2,109 1,776 1,799 1,569
1,377 1,108 916 884 820
2,836 3,570 2,943 2,227 1,969
555 676 559 451 474
8,323 7,095 3,874 3,559 2,876
- - - - 4,067
2,544 2,585 2,329 2,180 -
3,043 2,991 2,589 2,384 -
19,021 18,024 18,142 17,471 15,639
3,619 3,500 2,814
41,184 37,990 39,081 36,140 34,343
3,616 3,073 2,816 6,749 3,598
10,182 11,065 11,395 9,815 8,439
4,215 4,350 4,265 3,984 3,510
19,832 21,565 24,870 25,263 18,287
31,236 13,407 15,298 18,572 12,929
24,217 54,356 33,687 18,740 20,739
7,427 5,541 11,884 6,333 12,111
6,273 7,152 16,204 14,965 16,654
191,328 200,394 195,673 171,793 158,299
(31,661) (43,625) (28,000) (6,927) (12,189)
54,463 58,948 21,267 30,529 7,794
- - - 3,833 -
16,018 -
(1,743)
- (52,673) - - (10,001)
24,582 61,514 37,947 30,110 25,684
(57,096) (59,818) (21,908) (32,958) (9,053)
36,224 7,971 37,306 31,514 14,424
$ 4,563 $ (35,654) $ 9,306 $ 24,587 $ 2,235
8.9% 9.5% 21.0% 16.2% 26.4%
126
CITY OF HUNTINGTON BEACH
ASSESSED AND ACTUAL VALUATION
OF ALL TAXABLE PROPERTY (EXCLUDING REDEVELOPMENT AGENCY)
LAST TEN FISCAL YEARS
(In Thousands)
Common Total Assessed Total Direct Tax
Fiscal Year Property Public Utilities Total Secured Unsecured Valuation Rate
1998-1999 $ 13,376,116 $ 2,705 $ 13,378,821 $ 598,733 $ 13,977,554 1.05840
1999-2000 13,386,740 1,670 13,388,410 581,160 13,969,570 1.05810
2000-2001 15,796,157 2,745 15,798,902 674,719 16,473,621 1.05810
2001-2002 16,081,760 2,449 16,084,209 699,307 16,783,516 1.00770
2002-2003 17,949,445 2,428 17,951,873 820,219 18,772,092 1.01902
2003-2004 17,987,861 2,876 17,990,737 911,027 18,901,764 1.02571
2004-2005 19,532,238 3,524 19,535,762 877,078 20,412,840 1.06575
2005-2006 20,925,190 1,522 20,926,712 790,513 21,717,225 1.06575
2006-2007 22,817,616 1,458 22,819,074 962,198 23,781,272 1.06487
2007-2008 24,294,404 305 24,294,709 1,066,668 25,361,377 1.07024
Source:County of Orange Auditor Controller
PROPERTY TAX RATES
ALL DIRECT AND
OVERLAPPING GOVERNMENTS
TAX RATE 04-001
LARGEST AREA IN CITY
LAST TEN FISCAL YEARS
Metro Water
Fiscal Year Basic Levy City Orange County School Districts District Others Total
1998-1999 $ 1.00000 $ 0.04930 $ 0.00020 $ $ 0.00890 $ $ 1.05840
1999-2000 1.00000 0.04930 - 0.00880 1.05810
2000-2001 1.00000 0.04930 0M880 1.05810
2001-2002 1.00000 - - 0.00770 1.00770
2002-2003 1.00000 - 0.01232 0.00670 - 1.01902
2003-2004 1.00000 0.00696 0.01214 0.00610 0.00051 1.02571
2004-2005 1.00000 0.00696 0.02850 0.00520 0.02509 1.06575
2005-2006 1.00000 0.00696 0.03814 0.00520 0.01545 1.06575
2006-2007 1.00000 0.00700 0.03718 0.00470 0.01599 1.06487
2007-2008 1.00000 0.00800 0.04273 0.00450 0.01501 1.07024
Note: Rates are per$100 of assessed valuation
Source:County of Orange Auditor Controller
127
CITY OF HUNTINGTON BEACH
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(In Thousands)
Secured Taxes Unsecured Taxes
Total Delinquency Delinquency Total Delinquency Delinquency
Fiscal Year Total Levy Collections Amount Percent Total Levy Collections Amount Percent
1998-1999 $ 18,341 $ 17,868 $ 262 1.47% $ 1,243 $ 1,146 $ 35 3.05%
1999-2000 21,001 20,676 284 1.35% 1,321 1,231 29 2.20%
2000-2001 22,724 22,035 629 2.77% 1,348 1,267 33 2.45%
2001-2002 24,581 24,238 343 1.40% 1,419 1,366 53 3.74%
2002-2003 27,634 26,765 507 1.83% 1,467 1,343 42 2.86%
2003-2004 31,024 30,033 441 1.42% 1,507 1,382 34 2.26%
2004-2005 34,403 33,423 570 1.66% 1,606 1,474 40 2.49%
2005-2006 36,556 35,318 795 2.17% 1,590 1,434 42 2.64%
2006-2007 39,174 37,194 1,278 3.26% 1,842 1,600 150 8.14%
2007-2008 1 42,269 40,001 1,734 4.10% 1 1,718 1,618 34 1.98%
Reservoir Hill Community Facilities Districts
Total Delinquency Delinquency Total Delinquency Delinquency
Fiscal Year Total Levy Collections Amount Percent Total Levy Collections Amount Percent
1998-1999 $ 194 $ 184 $ 9 4.89% $ 264 $ 255 $ 8 3.14%
1999-2000 184 181 3 1.63% 264 259 5 1.89%
2000.2001 184 180 4 2.17% 264 258 5 1.89%
2001-2002 188 184 4 2.13% 264 258 6 2.27%
2002-2003 192 189 3 1.56% 538 534 1 0.19%
2003-2004 191 190 1 0.52% 1,797 1,789 2 0.11%
2004-2005 - - - 0.00% 1,731 1,719 7 0.41%
2005-2006 - - 0.00% 4,085 4,069 11 0.27%
2006-2007 - - - 0.00% 4,061 4,041 7 0.17%
2007-2008 - - - 0.00% 1 4,106 4,085 9 0.22%
Source:County of Orange Auditor Controller's Office
Note- Delinquency amount does not always equal levy amount minus
collections amount since there are always amounts collected from prior
yea rs
128
CITY OF HUNTINGTON BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year Ending September 30,
Long-Term Indebtedness 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Governmental Activities:
Judgement Obligation Bonds $ 10,050 $ 10,795 $ 11,525 $ 12,245 $ 12,500 $ $ $ $ - $
Public Financing Authority:
1992 Revenue Bonds - - - - - - - 20,460 20,885 21,275
1997 Leasehold Revenue Bond 2,945 3,025 3,690 4,330 4,940 51515 6,070 6,580 7,020 7,440
2000 Certificates of Participation 13,515 14,215 14,885 15,525 16,140 16,730 17,295 17,840 18,310 -
2001-a Leasehold Revenue Bond 27,075 27,750 28,400 29,030 29,635 30,220 30,780 31,360
2001-b Leasehold Revenue Bond 19,595 21,340 23,030 24,670 26,265 27,800 29,275 - - -
Total Public Financing Authority 63,130 66,330 70,005 73,555 76,980 80,265 83,420 76,240 46,215 28,715
Civic Improvement Corporation:
Refunding Certificates of Participation(Civic Center 1993) - - - - - - - 16,655 17,360 18,030
Refunding Certificates of Participation(Police Admin Bldg 1993) - - 13,095 13,520 13,925
Reservoir Hill Assessment Bonds 360 415 605 815 1,030
Total Civic Improvement Corporation 360 415 30,355 31,695 32,985
Redevelopment Agency:
1999 Tax Allocation Refunding Bonds 7,410 7,790 8,155 8,505 8,840 9,160 9,470 9,770 10,060 10,340
2002 Tax Allocation Refunding Bonds 16,250 17,095 17,910 18,700 19,465 20,215 20,900 - - -
MayerDispositionandDevelopmentAgreement 6,810 7,101 8,197 10,083 10,730 10,549 11,280 4,756 11,678 10,142
Bella Terra OPA(Parking) 14,532 14,855 15,000 - - - - - -
Section 108 Loan/Bowen Court 6,530 6,895 7,235 7,550 7,850 7,630 7,890 8,130 8,355 -
Total Redevelopment Agency 51,532 53,736 56,497 44,838 46,885 47,554 49,540 22,656 30,093 20,482
Other Long-Term Obligations:
Notes Payable - - - 116 337 545 293 345 393 451
Energy Financing Loan - - - - - 742 927 1,173 308
Compensated Absences 12,253 11,068 9,630 9,045 8,037 8,223 8,950 8,075 6,135 5,463
Advances from Other Funds - - - - - - - 57,507 56,805 59,897
Net Pension Obligation 4,440 4,775 6,548 7,640 8,409 8,342 8,593 8,337 8,150 7,244
Capital Leases Payable 1,681 2,281 2,975 3,461 4,885 6,420 4,107 123 155 -
Claims Payable 6,368 4,672 3,956 14,545 11,937 15,053 12,612 - -
Property Tax Claims - 22,138 - - -
Total Other Long-Term Obligations 24,742 22,796 23,109 34,807 33,605 60,721 35,297 75,314 72,811 73,363
$ 149,454 $ 153,657 $ 161,136 $ 165,445 $ 169,970 $ 188,900 $168,672 $204,665 $180,814 $155,545
Long-Term Obligations-Business Activities:
Certificates of Participation S - S - S - $ - S - $ - $ - $ - $ - $ 5,105
Compensated Absences 1,078 1,059 868 786 710 623 491 472 400 333
Leases Payable 9 12 40 112 183 250 595 431 9 46
Total Long-Term Obligations-Business Activities $ 1,087 $ 1,071 $ 908 $ 898 $ 893 $ 873 $ 1,086 $ 903 $ 409 $ 5,484
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Population` 201,993 202,250 201,000 200,023 198,996 197,263 194,889 192,446 188,706 187,061
Debt Per-Capita S 740 $ 619 S 623 $ 705 $ 675 $ 719 S 695 S 723 S 705 S 585
Total Personal Income(In Thousands)- $ 8,000,943 $7,626,443 $7,436,799 $7,284,238 $7,246,837 $7,456,541
Per-Capita Personal Income- $ 39,610 S 37,708 S 36,999 $ 36,417 $ 36,417 S 37,800
Unemployment Rate- 4.70% 3.40% 2.70% 3.00% 3.20% 3.80% 4.00% 3.40% 2.80% 0.036
Total Employment- 119,300 121,100 121,400 119,600 117,200 114,400 112,600 111,800 110,200
Source:
State of California Department of Finance
"Claritas,Inc.
"'State of California Employee Development Department
NOTE:
Information on personal income is not readily available for year 2002 and earlier. Until Data is readily available,only available years will be presented.
129
CITY OF HUNTINGTON BEACH
TOP TEN PROPERTY TAXPAYERS
CURRENT YEAR AND SEVEN YEARS AGO
2007-2008
Revenue Percent
In Thousands of Total
Mayer Financial Limited Partnership $ 1,879 3.37%
Bella Terra Associates LLC 1,781 3.19%
Mullrock 1 Beach Pointe LLC 447 0.80%
Mc Donnel Douglas Corp/Boeing Corp 418 0.75%
Waterfront Construction 1 California LP 414 0.74%
Redevelopment Agency of Huntington Beach 386 0.69%
Essex Huntington Breakers 311 0.56%
NF Huntington Plaza 304 0.54%
CIM Huntington LLC 289 0.52%
Pierside Pavilion LLC 283 0.51%
Total Top Ten 6,512 11.67%
All Other Properties 49,290 88.33%
City Total $ 55,802 100.00%
2000-2001
Revenue Percent
In Thousands of Total
Mc Donnel Douglas Corp/Boeing Corp $ 764 2.10%
Huntington Center 357 0.98%
Waterfront Construction 1 A California 335 0.92%
Essex Huntington Breakers 259 0.71%
Kyray LLC 214 0.59%
Atlanta Huntington Beach LLC 211 0.58%
AES Huntington Beach LLC 205 0.56%
Liu Corporation 172 0.47%
Bentall US Partners 158 0.43%
JT Development Company 112 0.31%
Total Top Ten 2,787 7.66%
All Other Properties 33,609 92.34%
City Total $ 36,396 100.00%
Source: HdL Coren&Cone
Note: Information on the top ten property taxpayers is not readily available for fiscal year
ending September 2000 and earlier.
130
CITY OF HUNTINGTON BEACH
LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
(In Thousands)
Debt Limit-12%
Assessed of Assessed Debt Applicable Legal Debt
Valuation Valuation to Limit Margin
1998-1999 $ 13,977,554 $ 1,677,306 $ $ 1,677,306
1999-2000 13,969,570 1,676,348 1,676,348
2000-2001 16,473,621 1,976,835 - 1,976,835
2001-2002 16,783,516 2,014,022 - 2,014,022
2002-2003 18,772,092 2,252,651 - 2,252,651
2003-2004 18,901,764 2,268,212 2,268,212
2004-2005 20,412,840 2,449,541 - 2,449,541
2005-2006 21,717,225 2,606,067 - 2,606,067
2006-2007 23,781,272 2,853,753 - 2,853,753
2007-2008 25,361,377 3,043,365 - 3,043,365
PRINCIPAL PRIVATE EMPLOYERS
CURRENT YEAR AND THREE YEARS AGO
2008 %of total
Boeing 4,352 3.657/o
Qui ksilver 1,337 1.12%
Cambo Manufacturing 909 0.76%
Verizon 723 0.61%
Hyatt Regency Huntington Beach 670 0.56%
C&D Aerospace 600 0.50%
Huntington Beach Hospital 503 0.42%
Fisher&Paykel 441 0.37%
Rainbow Disposal 408 0.34%
Home Depot(inlcuding Expo) 386 0.32%
Total of top 10 10,329 8.66%
all others 108,971 91.34%
Total employment(public and private) 119,300 100.00%
2005 %of total
Boeing 4,282 3.58%
Quiksilver 1,550 1.30%
Cambo Manufacturing 886 0.74%
Dynamic Cooking Systems 706 0.59%
Triad Financial 637 0.53%
Verizon 556 0.46%
E-Trade Mortgage 554 0.46%
C&D Aerospace 554 0.46%
Huntington Beach Hospital 513 0.43%
Rainbow Disposal 408 0.34%
Total of top 10 10,646 8.90%
all others 108,954 91.10%
Total employment(public and private) 119,600 100.00%
Source- Economic Development Department, City of Huntington Beach
Note: Information on the principal private employers in not readily available forfiscal year
ending September 2004 and earlier. Until data is readily available, only the available
years will be presented.
131
CITY OF HUNTINGTON BEACH
FULL-TIME BUDGETED CITY EMPLOYEES BY FUNCTION/PROGRAM
LAST SEVEN FISCAL YEARS
General Government: 2008 2007 2006 2005 2004 2003 2002
City Council 1.00 1.00 1.00 1.00 1.00 1.00 1.00
City Administrator 8.00 8.00 29.00 29.00 7.00 13.00 17.00
City Treasurer 10.00 10.00 10.00 16.00 16.00 16.00 16.00
City Attorney 18.00 18.00 18.00 17.00 15.00 14.00 16.00
City Clerk 8.00 8.00 8.00 7.50 7.50 8.00 8.00
Finance 33.00 33.00 31.00 23.00 - - -
Human Resources 20.00 20.00 - - - - -
Administrative Services - - - - 47.00 49.00 53.50
Planning 28.00 28.00 28.00 27.50 25.00 26.00 28.00
Building 31.50 31.50 31.50 30.50 27.50 27.50 27.50
Information Systems 38.00 38.00 38.00 36.00 37.00 18.50 18.25
Economic Development 13.00 14.00 13.00 14.00 11.00 12.00 15.00
Library Services 37.25 37.25 37.25 37.25 38.25 40.25 45.75
Fire 184.00 184.00 160.00 157.00 156.50 162.00 166.00
Police 376.00 376.00 374.00 371.50 366.00 379.00 388.00
Community Services 69.75 69.75 69.75 64.50 62.25 67.50 71.50
Public Works 255.00 257.00 255.30 240.00 231.00 264.00 270.00
1,130.50 1,133.50 1,103.80 1,071.75 1,048.00 1,097.75 1,141.50
Source: Finance Department,City of Huntington Beach
i
132
CITY OF HUNTINGTON BEACH
OPERATING INDICATORS BY FUNCTION/ACTIVITY
LAST FOUR FISCAL YEARS
Function/Program 2008 2007 2006 2005
Finance:
Water Bills Processed 642,883 630,228 626,903 586,000
Business Licenses Issued 21,129 20,670 19,746 20,184
Accounts Receivable Billings Processed 26,263 21,352 22,453 22,768
City Clerk:
Passports Issued 4,929 5,755 3,069 3,676
Planning:
Entitlements Processed 674 504 566 523
Plan Reviews 1,941 1,456 2,105 2,296
Field Inspection Complaints 7,932 5,273 5,926 5,550
Code Violation Cases 3,385 2,231 3,580 3,906
Building:
#of Permits Issued 9,254 4,355 11,210 12,082
#of Inspections Completed 40,510 42,181 43,905 49,737
Value of Construction Permits(Thousands of Dollars) 123,843 141,277 196,453 169,570
Processed#of Certificate of Occupancies 540 590 307 683
Automated Information Requests n/a 78,243 77,006 78,868
Counter Vists 2,854 n/a n/a n/a
Fire:
Inspections 6,203 4,900 4,300 4,100
Responses 13,879 12,400 12,100 12,100
Police:
Physical Arrests 6,930 5,576 6,368 5,282
Parking Violations 67,270 123,096 68,712 112,698
Traffic Violations 18,882 19,859 22,755 25,902
Community Services:
Acreage of Parks 1,001 999 999 998
Estimated Beach Visitors 10,452,461 10,363,719 10,085,358 8,727,369
Enrollment in Recreation Classes 35,537 34,932 25,447 22,346
Public Works:
Water Sold(Acre Feet) 30,518 31,128 29,246 29,730
Gallons of Sewage Pumped Per Day 23 million 23 million 23 million 23 million
Library:
Volumes in Collection 438,467 431,304 437,472 441,523
Volumes Borrowed 879,225 826,921 823,116 931,347
Source:Various departments of the City of Huntington Beach
CAPITAL ASSET STATISTICS BY FUNCTION/ACTIVITY
SEPTEMBER 30,2008
Library Services One Main Library and Four Branches
Fire:
Fire Stations 8
Police:
Stations One Main Station and Three Substations
Community Services:
Acreage of Parks 1001
Community Centers 6
Miles of Beach Maintained 3.5
Public Works:
Centerline Square Miles of Streets Maintained 562
Miles of Storm Drains Maintained 130
Miles of Sewer Maintained 356
Source:Various departments of the City of Huntington Beach
133
CITY OF HUNTINGTON BEACH
STATEMENT OF DIRECT AND
OVERLAPPING BONDED DEBT
SEPTEMBER 30, 2008
2007-08 Assessed Valuation$25,623,506,085 (after deducting$1,616,381,648)of incremental redevelopment valuation
Debt Repaid with Property Taxes (Tax and Assessment Debt):
Percent Debt Applicable
Tax Debt: Applicable to City
Orange County Teeter Plan Obligations 6.9680% $ 8,621,158
Metropolitan Water District 1.4480% 4,738,073
Coast Community College District 30.4190% 103,932,253
Huntington Beach Union High School District 77.6340% 179,928,439
Huntington Beach City School District 97.3350% 27,773,532
Los Alamitos Unified School District Comm Facilities Dist. 1990-1 1.3030% 113,947
City of Huntington Beach Community Facilities Districts 100.0000% 44,805,000
Tax and Assessment Debt 369,912,402
Other Debt
Other Entities:
Orange County General Fund Obligations 33,764,559
Orange County Pension Obligations 4,857,602
Orange County Board of Education Certifictes of Participation 1,365,031
MWDOC Facilities Corporation 1,462,019
North Orange County Regional Occupation Program Certificates of Participation 13,549
Huntington Beach Union High School District Certificates of Participation 40,386,053
Los Alamitos Unified School District Certificates of Participation 264,778
Fountain Valley School Districts Certificates of Participation 4,067,177
Huntington Beach City School District Certificates of Participation 9,957,371
Ocean View School District Certificates of Participation 7,841,188
Westminster School District Certificates of Participation 7,051,067
City of Huntington Judgement Obligation Bonds 10,050,000
City of Huntington Reporting Entity Beach General Fund Obligations: 63,130,000
Total Gross and Overlapping Bonded Debt Not Repaid by Property Taxes 184,210,394
Less Self Supporting Debt of MWDOC Water Facilities Corporation (1,462,019)
Total Net Direct and Overlapping General Fund Obligation Debt 182,748,375
Gross Combined Total Debt $ 552,660,777
Ratios to 2006-2007 Assessed Valuation
Total Overlapping Debt and Assessment Debt 1.36%
Ratios to Adjusted Assessed Valuations
Combined Direct Debt($77,659,678) 0.29%
Gross Combined Total Debt 2.16%
Net Combined Total Debt 2.16%
State School Building Aide Repayable $ -
so Source:California Municipal Statistics and City of Huntington Beach Finance Department
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