Loading...
HomeMy WebLinkAboutAccountants Report - Fiscal Year Ending 6/30/66 CITY OF HUNTINGTON BEACH ACCOUNTANTS' REPORT JUNE 30, 1966 CITY OF HUNTINGTON BEACH INDEX June 30, 1966 Page Number Accountants' Report 1 - 2 Combined Balance Sheet 3 - 4 Combined Statement of Unappropriated Surplus 5 General Fund: Statement of Revenues 6 - 8 Statement of Expenditures and Encumbrances 9 - 10 Special Revenue Funds: Balance Sheets 11 Statement of Unappropriated Surplus 12 Statement of Revenues 13 Statement of Expenditures 14 Capital Outlay Fund: Statement of Revenues 15 Statement of Expenditures and Encumbrances 16 ll 1955 Water Bond Interest and Redemption Fund: ' ! Statement of Revenues 15 ff Special Assessment Fund: Statement of Revenues 15 Library Fund: Statement of Revenues :5 Statement of Expenditures and Encumbrances 16 Water Utility Funds: Balance Sheets 17 Statements of Unappropriated Surplus 18 Statement of Income 19 - 20 Supplementary Coments 21 - 25 DIEHL, EVANS AND COMPANY 4EPTIF1ED PUBLIC ACCOUNTANTS CLLIS C.OICNL.C.r A.(IS>'S•IfS6I I910 NORTH BUSH STREET OTHLR QfItCLS AT: SRTN N.CVANS,C.R A. 307 SOUTH LINCOLN STREET WIN 6.PLTLRS.C.P A, SANTA ANA,CALIFORNIA 92706 SANTA MARIA,cAUFORNIA DONALD H.PCTLRSON.C.R A. KINGERLV 2-A453 WALNUT 5•2779 ROWN L.CUNNINGS.C.P.A. ,'.'NALO C.CALLAHAN,C.R A. 4335 NORTµ µ STTILCT L.PETER SCNCRCR.C.PA. LOMPOC.CAurnRMIA OIIN A.RAAECffO.C.R A. RCYi Nf 6-8292 • October 3, 196E ACCOuiCTANTS' REPORT City Council City of Huntington Beach ` Huntington Beach, California We have examined the balance sheets of the various funds of the City of Huntington Beach at June 30, 1966, and the related statements of „ unappropriated surplus, revenues, and expenditures and encumbrances for the year then envied. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such ocher auditing procedures as we consid.red necessary in the circumstances. except that our examination did not include tests of the historical cost of general fixed assets because cordplete records were not available. Therefore, these assets are omitted from the attached statements. The City has entered into a number of agreements providing for refund of water and sewer acreage fees in exchange for offsite development by the subdi-ider. Accounting records in connection with these refund agreements were not sufficient for us to determine the extent of the City's liability at June 30, 1966 for possible refunds due to subdividers, ariEing from offsite development. Since we were unable to satisfyuurselves as to the liability with Y regard to water and sewer refund agreements, and because of the omission of general fixed assets as noted above, we are unable to express an opinion that the accompanying balance sheets and related statements of unappropriated surplus, revenues, and expenditures and encumbrances present fairly the over-all financial position of the City at June 30, 1966. and the results of its transactions for _1_ I i the year then ended. It is our opinion, however, that the accompanying statements present fairly the financial position of the General Fund Special Revenue Funds (except Sewer Fund) Capital Outlay Funds Library Fund 1955 Bond Construction Fund 1955 Bond Interest and Redemption Fund W.O.C.W.B. Agency Fund Treasurer's Departmental Trust Fund Special Assessment Funds General Bonded Debt at June 30, 1966, and the results of fund transactions for the year then ended, and that the statements present fairly the assets and liabiliuies (except the liability with regard to water and sewer refund agreements) of the Water Utility and Sewer Funds at June 30, 1966, and their revenues (except acreage fees) and Expenditures for the year then ended, all in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The accompanying supplementary comments have been subjected to the tests and other auditing procedures applied in the examination of the financial statements and are subject to the same limitations expressed with regard to the financial statements mentioned above. _2- t�"Mm, C2TT Or YY..iI ± .'S. •• !mil.`,'__..•+•(4~k,A tea.' �y t• 1 *_ t J'rNtie �• �/� /� _. _ r t ! .. • Z• C0l01•l= mil*+� +'S At JunI 30' l%6 1955 saed Intar�ast Tr�raseaarar'• Bow Con. and W.O.C.W.B. Depart- Special General Special Capital Library Dater Utility struction Redemptions AgiftF, mental Assessment Loaded ASSETS Torah, GeBMI Fund venueAl ..21S ' Y &........ .� '..,.:,.�.� 1.._ . •a. 'Frstiat land beda oft _ Da6t Treasurer's cash $ 4,290,995.26 $ 1,638,447.59 $ 1,659,107.33 $ 37b,564.59 $- 22,707.36 $ 231,198.53 $ '77,310.35 $•45,488.53 IA,3.36.15 $ 79.520.00-1 36,820.80 4 • Treasurer's cash for Assessment District bonds and coupons 6,104.88 - - - - - 6,104.38 Cash and Invest- wents with fiscal agent 235,803.07 - • - - 235,5.33.07 - 270.00 - - - • Ntty cash 3,025.00 3.OW.00 - - - - - 35.C"0 • - - Accounts receivable 124,136.11 5,737.85 46,255,00 - 4.69 72,138.57 - - - - Interfund loan ' receivable 321,876.30 321,867.30 - Due from Water Fund for 1955 Bovd Interest and Redemption 519,885.50 519,885.50 - - - - - - - - Due from other Funds 77,879.41 73,468.08 - - 4,411.33 - - - - Due from other entities 19,330.79 - - - - - • - 19,330.79 - - - Due from the State 1,361.57 1,361.57 - - - - - - - - - - Due from other cities 14,930.80 14,930.80 - - - - - - - Deposits 29,269.00 - - 29,269.00 - - • - - - Plant in service • (net) 5,966,940.64 - - - 5,066,940.64 - - - - Spare partc . inventory 542.62 - - - - - - 342.62 - • Amount available and to be provided for "nd Interest and Redemption ..�618,kJ0 Gib - - � AIR-in al TOTAL ASS2TS $ 12,230,521.95 i 2,578,698.69 0 1,705,362.33 �3`76,R64�9 22 712. $ 6.339I491:14 $ 77� 30.38 '2521-1 3 $•14i,234.36 7 74.320.00 S 42.925." 618.450. See accompanying accountants' report. - ... _ ?..� � .cam ❑ �,�'e-,i.;n�v�_Y� .�` - � ,• _ ��•,,�g•,-' ... `. �C t yF-aa� •j"1 r'K I'�, .a+•"••4 f Y r...4 ` T4�+' � Y •-.. ice , PA I ism 111W." jj,, t. y L` �.. s .ram-.`>= `a '!••i ..+.'�!•. • 8 vim-• I ✓Ft. , 19 r• `. Ki -., .. a"r,`i' rr tip:2 v. •` - r,r - .- ... 12. IIM,. y�• `..+.`_�:'!a�y`$�.. if�'�• .. _. ll55 fo1$ •lsaa�nr�r'a - . 1955. ':ntsrast ' impart- 1 Capital Soak Con- and rntel special Geswlral Special Outlay Lfbriry Voter Utility'. structiou Radraption aincy• Trust Assessment son4ed LIABILITIES An SURPLUS Igtal General Fund Revenue Funds . F"�utu1 �mdr Fymsl litind Tiind' Mled �.aw�u��� ��r:�.r�..�r w�i►mat+aY��ai�.s�•������-.— � Accounts payable $ 388,770.58 $ 154,353.01 $ 100,462.27 $ - , 2,026.17 $ 91,2b6:Of. '# = - 40,661A7 $ - ! - - Accrued payroll 156,727.28 147,460.06 - - 5,198.82 4,060-40 - Matured interest payable 8,312.50 - - - - 8,312.50 - - - - Accrued bond principal, 1963 water bonds 13,360.61 - - - - 13,360.61 •. - - - Accrued bond interest, 1963 water bonds 22,879.20 - .. - - 22,879.20 Refundable acreage fees 11,346.00 - 11,346.Ofi - - - - - - - Refundable deposits 5,287.00 5,287.00 - Due to other funds 597,807.20 - 43,569.06 - 166.89 554,028.% - - 42.29 - - Due to Assessment Dfstrict bondholders 6,10Yi.88 - - - - - - - - - 6,104.88 - Inter€und loans payable 321,867.30 - - - - 321,867.30 Prepaid licenses 21,363.75 21,363.75 - •• - - - - - - Advances for construction 26,955.70 - - - - 26,955.70 - - - - - - Matured bond interest payable 270.00 - - - - - 270.QC - - - Interest payable in future years 93,450.00 - - - - - - - - General bonded debt 523,000.00 - - - - - - - - - - 43,450.00 Revenue bonds payable 3,726,666.72 - - - - 3,726,666.72 - - - - - 525r0.00 Reserve for en^umbrances 94,742.13 87,483.75 - - 3,434.11 3,824.27 - - - - Reserve for accounts receivable 46,000.tg - 46,000.00 - - - - - - - - - Reserve for amount due from other entities 19,330.79 - - - - - - 19,330.79 - - Reserve for payment of general obligation bonds 618,450.00 - - - - 618,450.00 - - - - • - Reserve for amount due from water fund for 1955 Bond Interest and Redemption 519,885.50 519,885.50 - - - - - - - - - Reserve for amounts due from other funds 89,160.45 89,760.45 Reserve for interfund loans receivable 321,867.30 321,867.30 • .. - - - - - - - - Rcserve for future engineering 90,360.55 90,360.55 - - - - - - - - Riserve for contingencies 145,388.21 145,388.21 Reserve for pier repair and maintenance 10,000.00 10,000.00 - - - _ - - - - - - j Contributions in aid of construction 137,366.79 - - - - 137.366.79. - - - - - City contributions to rater Fund 92,607.51 - - - - 92,607.51 - - - Fund balance 199,541.21 - - - - s4,2N641•-•.7'8;520.00 • 361820.a4 t� Su-7plus invested in fixed assets 527,552.45 - Unappropriated Surplus 3,391,500.34 965 4891.11 1 503 485.00 '376 564. 9. 11 886.06• - 3 - TOTAL LIANILITM AND SURPLUS r1L 230.2.-l.95 See accompanying accountants' report. •- ' -a V� t:�_�'k � 1�; a• `-„�••r-'u'' r•v- '"�' f/a. � ♦ - --.t'�!+"y L`Pg r,•..;� t,, •. C. " yy�,� i . 4 �, • L - `Yy!t/1c '°kt. t', .:E.1 11Y For the your ended Jura 30, 1956 _ _ 1955 .li 1955 , Soad Special Capital slater Bond laterest and _ General Revenue outlay Library utility Camstructica Redemption Tote --_..rund BALANCE, JULY 1, 1965 $ 3,133,876.59 $ 886,568.03 $ 1,484,837.40 ' 94,184:95 $ 12,126.33 528,803.13 $ 77.310.38 45,046.29 . ADD: Revenues 7,623,150.15 3,807,560.79 2,177,633.94 277,319.64 167;i66.04 1,1+2,767.32 - .50,722.42 Reimbursements and refoads 23,514.73 - - - - 23,514.73 - - Adjustment of refundable deposits 11.70 - - - - 11.70 - - Adjustment of prior year expenditures 49,859.69 - 49,859.69 - - - - - Adjustment of prior years' accounts receivable 7.69 - - - - 7.69 - - Adjustment of surplus invested in fixed assets 70,933.97 - - - - 70,933.97 - - Reserve for interfund loans receivable, July 1, 1966 420,880.00 420,880.0D - - - - - - Transfers from other funds 1,272,339.07 1,272,339.07 - - - - - - Reserve for encumbrances, July 1, 1965 288,139.11 46,445.62 201,013.56 38,890.28 148.66 1,640.97 - - Portion of bond principal accrued in Bond Redemption Fund 13,333.28 - - - - 13,333.28 - - Reserve for amount due to General Fund for retirement of General Obligation Bonds, July 1, 1965 6M325.00 - - 668J2,00 - I TOTAL BALANCE AND ADDITIORS 13,564,370.98 6,433,793.21 3413, s.§2 412 J54—U - 179,361.03: _ 2,4k9.33?.79 77MIR 92,7 .71 DEDUCTIONS: Expenditures 7,696,671.38 4,930,323.20 1,166,895.62 - 160,276.28 1,369,39G.10 • - 49,786.16 Expenditures on prior years' encumbrances 65,676.91 26,637.97 - 38,990.28 148.66 - - - Reserve for encumbrances, June 30, 1966 94,742.13 87,483.75 - - 3,434.11 3,824.27 - - Adjust for revenue of prior period 189.04 189.04 • - - - " Adjust for expenditures of prior period 5,396.12 - 1;780.20 - - 3,615.92 • - - Adjustment of reserve for amount due from other funds 80,022.94 80,022.94 - - - i Reserve for interfund loans receivable, June 30, 1966 321,867.30 321,867.30 - Write-off of uncollectible accounts receivable 17,515.75 - - - - 17,51,75 - Fond for retirement of General Obligation Bonds, June 30, 1966 618,450.00 - - 618,450.00 - - Transfers to other funds 12272,339,07 - 1.2 4fr4.07": - 149; I75,0d - TOTAL DEDUCTIONS l0,l72,870J �„ � _�2+,52 _.:�� � `�d A7-474,97 BAF 2.1154�06*�.72 .ANCE JUNE 30 1%6 ' • . : ,;- 3Ia:3 $ 45. � 3.391.50�0 34 $ 485,489.1>: . $ 1,50F3;�185:� � 376,544.54 .•l�` -11;886 1I�6�; `90� � 7T, 98Z.53 See accompanying accountants' report. ; C .. 1 ',Ln"'k• - ,,°��-?X...:rs�ye .''4..„' tiy' •P�;,�.Spx�»f'H.�,:i7u�"'•":.i-�t_ ''�+;1�•`x�;, • . __i" ,.4..�.� „ � - - - .•t. , -�r yam. ` - CITY OF HUNTINGTON BEACH GENERAL FUND STATEMENT OF REVENUES • For the year ended June 30, 1966 Over or Budget Actual (Under) Estimate_. .W� Bpvenue _ Estimate TAXES, Property taxes $ 1,571,278.00 $ 1,527,990.74- $ (43,287.26) Interest and penalties on delinquent taxes 1,000.00 7,899.33% 6,899.33 Solvent credits 2,702.00 902.50• (1,799.50) Aircraft 375.00 300.04/ (74.96) Water utilities in lieu taxes 32,700.00 29,711.45, (2,988.55) Franchise, utility 63,000.00 75,441.66" 12,441.66 Franchise, dry gas 3,500.00 1,888.22' (1,611.78) Franchise, pipeline 12,000.00 18,631.95, 6,631.95 Sales and use taxes 650,000.00 560,666.41' (89,333.59) Occupancy tax 10,000.00 ..!_,17,404.91' 7,404.91 TOTAL TAXES , .2,346�555 00 2,240`837.21 105 71.7.7 LICENSES AND PERMITS: Business licenses 105,000.00 100,482.51- (4,517.49) Subdivision licenses 235,003.00 202,700.00r (32,300.00) Bicycle licenses 300.00 718.00' 418.00 Oil derrick licenses 21,000.00 199517.20, (1,482.80) Journeyman plumbers' certificates 400.00 - (400.00) Building permits 240,000.00 226,244.75, (13,7:5.t5) Plumbing permits 85,000.00 83,853.60, (1,146.40) Electrical permits 80,000.00 69,829.96' (10,170.04) Heating permits 19,000.00 27,165.9Y 8,165.95 Excavation, streets and curb permits 30,000.00 54,866.61 24,866.61 Waste water disposal permits and fees 22,000.00 15,907.50' (6,092.50) Other permits and licenses 4,500.00 5.5i 3 65/ 1,053.65 TOTAL LICENSES AND 8420,200.00 806,839 73 (35,360.27) PERMITS FINES AND FORFEITURES: Court fines, non-traffic �- 48.000.00 .48,993.47 ✓ 993.47 REVENUE FROM USE OF MONEY AND PROPERTY: Interest income 21,000.00 26,242.52 r 5,242.52 Lease - Huntington Driftwood 39,600.00 39,600.00 r� - Land rental 2,000.00 2,640.00 640.00 Building rental 14,500.00 14,199.32 (300.68) Pier rentals aad concessions 9,800.00 8,773.37 (1,026.63) See accompanying accountants' report. -6- CITY On HUNTINGTON BEACH GENERAL FUND STATEMENT OF REVENUES For the year ended June 30, 1966 Over or Budget Actual (Under) • Estimate Revenue Estimate REVENUE FROM USE OF MONEY AND PROPERTY: (Continued) Beach rentals and concessions $ 34,000.00 $ 27,069.76 $ (6,930.24) Golf course rental 41,000.00 12,822.65 -- (8,177.35) Royalties and easements 24,000.00 28,036.31 4,036.31 Parking lot collections 40,000.00 45,558.00 5,558.00 Other revenue from use of y money and property 500.00 595.13 _ 95.13_ TOTAL CHARGES FOR USE OF MONEY AND PROPFRTY 226,400.00 225,537.06 � (862.W REVENUE FROM OTHER AGENCIES: Trailer coach license fees 11,500.00 14,907.56 y 3,407.56 State alco'.olic beverage y license fees 19,000.00 21,674.70 2,674.70 County grants - lifeguard and beach maintenance 55,000.00 54,000.00 (1,000.00) Statc oil and gas lease 50,000.00 39,952.58 -' (10,047.42) Lifeguard services 30,700.00 30,698.00 �� (2.00) v Beach mai�ttenance 12,000.00 11,967.191 (32.81) Other revenue from other agencies 1 5„00.00 ���1 274.05 (225,_95r) TOTAL REVENUE FROM OTHER AGENCIES 179,700.00 174,474e_08 {5,7.25.92) ^a��� CHARGES FOR CURRENT SERVICES: Zoning and subdivision fees 35,000.00 29,660.60 (5,339.40) Sale of maps and publications 2,800.00 1,963,05 (636.95) Oil well application fees 4,500.00 8,803.50 4,303.50 Plan check fees 100,000.00 101,793.75 1,793.75 Engineering and inspection fees 100,000.00 110 912.56 20,912.56 Weed abatement 21,000.00 �' ,471.12 2,471.12 Special police department services 3,500.00 3,205.30 (294.70) Special fire service 2,000.00 32.50 (1,967.50) Other charges for current services,r 1,500.00 3,813.83 �r2,313.83 TOTAL CHARGES FOR CURRENT SERVICES 270,300.00 293,6� 5,,. 6.21/ , 23.356.21 See accompanying accountants' report. .7_ w CITY OF HUNTINGTON BEACH GENERAL FUND STATEMENT OF REVENUES (Continued) For the year ended June 30, 1966 Over or Budget Actual (Under) Eotlmate _Revenue _ l,�Lwte REVENUE FROH SALE OF PROPERTY: Sale of real and personal property 1,000 00 $ 867.60 _. C1,3, 2_40) OTHER RLVEMES: Surfing championship 13,000.00 13,213.61 213.61 Other revenue 4,000,00 3,141.82 (858.18) TOTAL OTHER REVENUE 17,000,00 16,355.43 (644.57) TOTAL REVENUES $ 3.931.155.00 $ 3,807,560.79 "'$(123 594.21) See accompanying accountants' report. -8- CITY OF HUNTINGTON BEACH GENSIL%L FUND STATEMENT OF EXPENDITURES AND ENCUMBRANCES For the year ended June 30, 1966 Appropriations Expenditures Encumbrances Unen- (After against Current and Projects cumbered K.evistgns) - APP&oPr at{ns Authorized .balance .. City Council $ 12,180.00 $ 12,105.88 $ 59.70 $ 14.42 City Administration 58,212.00 58,181.63 - 30.3i City Treasurer 30,224.00 29,619.78 574.68 29.5E City Attorney 38,650.00 38,398.74 231.99 19.27 City Clerk 45,069.00 45,035.64 10.00 23.36 Purchasing Department 19,435.00 19,345.88 74.69 14.43 Finance Department 49,665.00 49,643.15 - 21.85 Elections 27,715.00 27,702.09 - 12.91 Planning Department 76,805.00 76,778.80 - 26.20 Celebrations 14,795.00 13,490.00 1,284.63 20.29 Municipal buildings 25,388.00 25,297.41 72.63 17.96 City general - Non-departmental 1,080,158.00 1,010,263.09 1,773.01 68,121.90 Fire Department 562,407.00 562,119.61✓ 227.41 59.98 Weed abatement 31,503.00 31,487.38 - 15.62 Parking meters 12,236.00 11986.05 94.94 155.01 Police Department 819,890.00 813:904.50 5,906.08 79.42 Lifeguard Department 268,253.00 267,084.58 1,17.6.12 52.30 Civil Defense 6,304.00 6,266.73 - 37.27 Building Department 234,625.00 232,770.04 1,815.58 39.38 Oil field inspection 9,047.00 9,037.15 • 9.85 Engineering Department 284,127.00 283,972.78 116.61 37.61 Maintenance Yard #1 49,150.00 47,327.66 1,774.22 48.12 Building Maintenance 36,995.00 36,967.13 10.56 17.31 Sewer System Maintenance 31,744.00 31,064.64 650.00 29.36 Flood Control 40,000.00 40,000.00 - Pump Station 20,985.00 20,961.33 - 23.67 Street Maintenance 282,616.00 246,525.84 36,037.04 53.12 Street Bridges Maintenance 1,535.00 1,532.38 - 2.62 Street Trees 49,221.00 42,406.68 6,785.68 28.64 See accompanying accountants' report. i -9- J CITY OF HUNTINGTON BEACH GENERAL YUND STATEMENT OF EXPENDITURES AND ENCUMBRANCES (Continued) For the year ended June 30, 1966 Appropriations Expenditures Encumbrances Unen- (After against Currant and Projects cumbered Revisions) Appropriations Authorized B laUce _ Street cleaning $ 46,071.00 $ 45,Q43.22 $ 112.80 $ 14.98 Street marking 39,440.00 38,549.87 839.37 50.76 Street lighting 198,757.00 195,926.97 2,812.25 17.78 Traffic signals 4,210.00 4,203.9_ - 6.05 Beach maintenance A4,200.00 57,669.75 6,497.24 33.01 Municipal Beach parking lot 14,170.00 14,153.19 - 16.81 Municipal Pier 9,226.00 9,215.63 - 10.37 Municipal Parks maintenance 55,256.00 55,136.95 82.78 36.27 Lake Pnrk building 910.00 903.37 6.63 Pavalon building 1,370.00 1,366.61 - 3.39 Recreation Department 407,689.00 401,118.88 441.86 6,128.26 West Coast Surfing 0% Championship 14,820.00 14.858.16 31.84 TOTAL EXPEND- ITURES AND ENCUMBRANCES S,975 1 3.00 S 4.930.323.20 $ 69.401.87 $ 75.397 .93 See accompanying accountants' report. -10- 1 '`�'. • '=Sa�k'�y_1•1'.i•�}1t _ 'a}�' f �_ -..s'""•-�f`,hE t"yd� ..lr'�. � f 1. to t •t , •R4'a a. ( _ :4� .T". E•P"-IGv.._Y'�� .S' �^ '}. a °5'�j.'f •7y+e^4}�'xk� v„a �_� v a.:,3* �'�;�:�t''1'.t 1. -� < .ram • �~ ` � �}�.s`` •'••� s.--+4�-:•.. :t".` .'Y3''�'�:R 4• K;Jv.:i"�•+:� �ti 4 CITY,ow mwnwwmid SPWM VHEMS .. At Jame 30, 1966 Planned local • Special Drainage' ParkIft . Special Park Special Anisial Recreation Facilities Neter =•• Acquisition Can Tax License Pea ASSETS Total lund Fund saver ed fiord - Fund Fund Fund Treasurer', cash $ 1,659,107.33 $ 46,001.00 607,255.43 $. 818,905.74 $ 420'347.09 $ 29,204.10 $ 110,472.84 $ 4,921.13 Accounts receivable 46.255.00• 35.00 46:ON,06 220.04 TOTAL ASSIM $ 1,705,362.33 $ 46,a36.60 $ 653,255.43 $ 819 125.74 $ 42.347 09 $ 292204.10 $ 110.472.&4 4,921.13 LIABILITIES AND SURPLUS i Accounts payable $ 100,462.27 $ - $ - $ - $ - $ - $ 95,541.14 $ 4,921.13 Acreage fees refundable 11,346.00 - - 11,345:00 - - - nose to other funds 43,569.06 129.00 - 42,341.09 1,092.97 - - Reserve for accounts receivable 46,000.00 - 46,000.00 - - - Reserve for encumbrances, Jui:e 30, 1966 - - - - - - - - Unappropriated surplus 1,503.9B5.00 _;5.207.00 607:255.43 8i}7i772.74 28,111.13 14,931.70 - TOTAL LIABILITIES AND SURPLUS $ 1,705,362.33 I 46:,�.6.00. $ 653.255.43 3 819.125.74 42.347.09, 3 29.204.10 $ 110.472.84 L.IAL21.13 1.i • See accowpanving accountants' report. n ' ,. .<. • _ 'L"t�,at'�y��ti 'mil. "��' 4 ,4;} '• cm OF HI7lfnmG3'01i BXAM _ }�VI STA'TEkW:T OF LtiJlYi' PRIA13D SURPLOS For the year e,Aed June 30, 1966 Planned 'Local Special Music and Special Drpinage Traffic Auto in Park Aniisal Promotion Recreation Facilities Safety Parking Lieu Tax Acquisition Special License lice. Total Fund AMd Fund Sewer Fund Fund Heter Fund Fund ,_, Gas Talc Fund Find BAIANCE, JUL7 1, 1965 $ 1,484,837.48 $ - $ 30,095.92 $ 434,601.10 734,705.43 $ - $ - $ - $ 140,310.20 $ 145,124.83 $ - ADD: i Revenues 2,177,633.94 272,619.23 179,173.72 328,122.85 266.365.22 106,245.69 42,347.09 497,912.40 23,648.86 423,390.88 37,308.00 � Adjustment of prior year's i expenditures 49.859.69 - - 5,336.30 - - - - - 44,523.39 - Encumbrances, July 1, 1965 201.013.58 - - ._ - - 221,011 TOTAL BAIANCE AND ADDITIONS 3,913,344.62 272,619.23 209.269.64 768.060.25 1,0010570.65 _106.245.69 42,347.99 497,912.40 163,559.06 814.032,68 DEDUCT: - Expenditures 1,186,895.62 - - 160,804.82 193,790.91 - - - 135,847.93 662,120.98 34,330.98 Transfers to other funds 1,222,464.07 272,619.23 163,362.64 - - 106,245.69 42,347.49 497,912.40 - 137,000.00 2,977.02 - I Adjustment of prior year's revenue - - - - - - - - - - - Encumbrances, June 30, 1966 TOTAL DEDUCTIV14S 2,409,359.69 272 6l9.23 163,362.64 160,804.82 193 790.9I 106,245.69 42.347.09 497,912,40 135.847.93 799.124.98 37.3LIB.00 ' BALANCE, J1rr1E 30, 1966 $ 1,503,985.00 $! $ 453907.JC $ 607,255.43 $ 807.779.74 $ - $ - 2L+�13 � 14� 93�` See accompanying accountants report. - _, ... - 46 •. -. - l �� .....4C. �YT-�. ?. '�@' '�Y.`i_ -r. : 'fir SMCUL llama FUR06 S"tATEHWr OF SEVMWU j For tte year ended June 30, 1966 Planned �_�•._: ..: Local Special Music and Drainage Traffic Auto in Park . Special Animal Promotion Recreation Facilities Safety Parking Lieu Tax Acquisition Gas Tax LicaMO P e Toga Fund Fund FAmd- Sewer Fund Fund lister Fund Fund -Ledi . bw Property taxes g 316,463.75'�$ 268,916.10 $ 127,547.65 Royalties and easements 2,674.92 1- - 2,674.92 - - - - - - - - Ocean View School agreement 8,500.00 ./ - 8.500.00 - - - - - - - Recreation Department fees and charges 36,847.78' - - 36,847.78 Z. - - - - - - - Federal grant for park sites 22,430,00- _ - - - - - - 22,430.00 - - Sewer permits 176,585.70 - - - 176,585.70 - - - - - - Interest 71,427.55-, 3,703.13 3,fii: ,"�- 19,265.964 30,642.17 717.56 719.09 3,724.34 1,218.86 7,833.07 Local assessments 368,494.24 - - 308,656.89 59,637.35 - - - - - - Vehicle code fines 105,528.13 ✓ - - - - 105,528.13 - - - - Parking meter collections 41,628.00 " - - - - - 41,628.00 - - - - Motor vehicle license fees 494,188.06 ✓ - - - - - - 494,188.06 - - State gasoline taxes 415,557.81.- f - - - - - - - 415,557.81 Animal licenses 37.308.00 - 37_3W_Qt! TOTAL $ 2.177.633.94 S 272.619,23 S_ 179.173.72 2.347.01 8 4 Ins t 23_E,48.86 423.390.88 S 3?_3EIR.OQ See accompanying accountants' report. Ji _L3- • - t r 7'' l-•��--•cam-'ry.�;� t'._ :'¢t - •{1�' � ti _ft:.0 f•.•"�V t �5.�4 w3,.S1-.� 1 _ ti 'F!;..,-.•ems s _=Y,�S �"•�!+�`?`'t"3 �.� �~ - - „ 1� •�`-> .. .L��s ..erg 4 _• } c or VZ •IIVRJ,ilMiM•i' 7• - s _ `�;•:-?'_rt ' 4' �" 't- ;.•- SPECJ/IW XZVMWR a Mir/ ' • _ ± STATOMT OF XOMOMMISS For the year ended June 30,' 1966 Planned Local .Drainage Special park knitai Facilities Sever Acquisition license Fee Special Total Funi3 1�c�nd y Gas That PMd Drainage improvements; Drainage area #5 $ 21,059.00 21,059.Doi $ • $ - $ - $ • Drainage urea #5A 631.?U 631.70'r ' - - - Drainage area MA 19,902.00 19.902.041 - - - Drainage area #7D 43,353.20 43,353.20+J - • Drainage area #7G 40,451.49 40,451.494 - - - Drainage area 09 35,247.43 35.247.434 - - -Graham-Edinger to to Bolsa sanitation sever 109,612.00 - 109,612.00 - - - Refunds and reimbursements 52,906.59 - 52,906.59 - - Warner Avenue sanitation sewer 14,616.00 - 14,616.00 - - - Huntington Street sewer lines 8,303.20 - 8,303.20 - - • Springdale and Slater pump station 4,217.67 4,217.67 - - - Equipment 461.53 - 461.53 - - • Miscellat:eoLs sewer costs 3,583.92 - 3,583.92 - - - Contractual services 250.00 160.004 90.00 - - - Purchase of land for park sites 135,847.93 - - 135,847.93 • - Street projects 662,120.98 - • - - 662,120.98 General supplies 753.78 - •' 753.78 - Contractual services, humane Society 33,577.20 - ,�.� 31,577.20 - TWAL 1 386 895.6�2 $ 160,804.82 $ 193,790.91 $ 135,847.9334,3� 3U= S 6b2,120.98 See accompanying accountants' report. - : - .icy _ .k-� ..� _•,��.�y .�,_'- j- '•r: ,;�� ; 'Za��� �'t�e.�• � •:i �-N�,-�,: �:. • - _ ♦ 1_. � ... ty�1,..`'•r•' _ .tip. fig. '+'S CITY OF HUNTINGTON BEACH STATEMENT OF REVENUES For the year ended June 30, 1966 CAPITAL. OUTLAY FUND • Over or (Under) Estimated Actual Estimate Property taxes $ 276,10.00 $ 270,050.73 ;$ (6,055.27) Interest 500.00 7 328.91 6,,�828.91 TOTAL $ 276.606.00 2_ 277,379.64 773.64 LIBRARY FUND Property taxes $ 161,614.00 $ 156,815.11 1"$ (4,798.89) Library fines and fees 6,000.00 10,265.94 4,265.94 Earned discounts 4.99 4.99 TOTAL $ 167,614.00 $ 167,086.0I (527.96) 1955 WATER BOND INTEREST AND REDEMPTION FUND Property taxes $ 49,883.00 S 49,475.18 �$ (407.82) Interest • _ 1,24 .24 1�,247 24 TOTAL $ 49 8883.00 $ 50,722.42 839.42 SPECIAL ASSESSMENT FUND Engineering inspection fees $ - $ 5,656.25 $ 5,656.25 Interest 84.75/ 84.75 TOTALS $ 5,741.0 5,741.00 i i f See accompanying accountants' report. -15- s CITY OF HUNTINGTON BEACH STATEMENT OF EXPENDITURES AND ENCUMBRANCES For the year ended June 30, 1966 CAPITAL OUTV%Y FUND Expenditures Against Encumbrances Unen- Appropriations Current and Projects cumbered (as.ftyi Ap2roprigtions Authorized Balance: FIRE DEPARM. NT: Fire trucks S 40.000.00 $ $ $ 40.000.00 LIBRARY FUND Salaries $ 121,759.00 $ 121,755.11 $ $ 3.89 Book rental 2,600.00 2,597.40 - 2.60 Materials and supplies 4,615.00 4,560.60 47.74 6.66 Books 23,205.00 20,320.61 3,026.37 (142.00) Utilities 2,630.00 2,626.10 - 3.90 Te lE phone 903.00 902.60 - .40 Bouk repairs and binding 2,170.00 1,809.01 360.00 .99 Building maintenance 1,475.00 1,474.22 - .78 Equipment maintenance 325.00 321.83 - 3.17 Vehicle operation 2,200.00 2,199.66 - .34 Conference expense 265.00 261.31 - 3.69 Equipment 1,133.00 1.,128.81 • 4.19 Miscellaneous and sundry 320.00 319,;00 1.00 TOTAL 16.1,600.00 $ 160,276.28 3.434.11 $ (110.39) See accompanying accountants' report. -16- s • .- _ .Sr.>w _ .. _ ...... ~.,,ice i -�s .\ _. -_:•?'C E_�� ,�Z ..�=-tea - ....L>��G' —;•_.i''_ .����.•t,. I _ . _. , � t •; �:ty.+i i. "`ALA i'4 t _ ..4 _ ->'j\"•` CM OF' M runs At June 30, 1966 1963 Water - 1963 Water 1963 hater Revenue Revenue Revenue Bond Bond 1963 Water Bonded Water Bond Con- Interest and Investment Revenue Debt Group Combined Utility struction Redemption Revenue Bond Reserve of Adjustments Balance ASSETS Fund Fund nd � 'Fund Fund Total (Note) Sheet Treasurer's cash $ 226,787.20 $ 4,411.33 $ - $ - $ - $ - $ 2.31,198.53 $ - $ 231,198.53 Cash and investments with fiscal agent - - 44,552.31 765.76 190,215.00 - 235,333.07 - 235,533.07 38.57 Accounts receivable 72,1 - - - - - 72,138.57 - 72,138.57 Due from other funds 4,411.33 - - - - - 4,411.33 - 4.411.33 Deposits 29,269.00 - - - - - 29,269.00 - 29,269.00 Plant in service (Less accumulated depreciation of $25 1,541.57) 5,966,94 0.64 - - - - - 5,966,940.64 - 5;966,940.E-� Amount to be provided from future revenue for bond redemption - - - - - 3,726,666.72 3,726,666.72 (3,726,666.72) - Amount to be provided from future revenue for bond interest - - - - - 2,227,738.30 2,227,738.30 (2.227-738.30) - { TOTAL ASSETS $6,299,546.74 $ =+�4� 111-33 $ 44.552.31 $��76 S 19'0,212.00 85,954,405.42 $12.493.B96.16 �,C5,g54,405.•02)$6.539.491.14 LIABILITIES AND SURPLUS Accounts payable $ 91,268.06 $ - $ - $ - $ - $ - $ 91,268.06 $ - $ 41,268.06 Accrued payroll 4,^r8.40 - - - - - 4,068.40 - 4,0ER-40 Accrued bond principal, 1963 water bonds - 13,360.61 - - - 13,360.61 - 13,360.6: Accrued bond interest, 1963 water bonds - - 22,879.20 - - - 22,879.XO - 22,8-1.20 Matured interest payable - - 8,312.50 - - - 8,312.50 - 8,311.50 Due to other funds 549,617.63 4,411.33 - - - - 554,028.96 - 554,C29.% Interfund loans payable 321,867.30 - - - - - 321,867.30 - 321,867-30 Advances for construction 26,955.70 - - - - 26,955.70 - 26,955.70 Reserve for encumbrances 3,824.27 - - - - - 3,824.27 - 3,824.27 Reserve for payment of general obligation bonds 618,450.00 - - - - - 618,450.00 - 618,450.€* Bonds payable in future years - - - - - 3,726,666.72 3,726,666.72 - 3,:26,666.72 Interest payable in future years - - - - - 2,227,738.30 2,227,738.30 (2,227,738.30) - Contributions in aid of construction 137,366.79 - - - - - 137,366.79 - 137,366.79 City contributions to water fund 92,607.51 - - - - - 92,607.51 - 92,607.51 Surplus invested in fixed assets 4,254,219.17 - - - - - 4,254,219.17 (3,726,666.72) 52?,512.45 Unappropriated surplus 199,,301.91 - 65.76 190.2154r} - 39Q.282.57 - 3"-282.17 TOTAL LIABILITIES AND SI3RPMS =a6,299,546.74 4�3 $ 44,552.31 $ 765.76 190 215-00 $5,E-54,405.02 $12.4.93.396.16 $(5.954,405.02)$6,539,4�JZ.14 NOTE: Adjustments remove future revenue and offsetting surplus invested in fixed assets from combined balance sheet. br•_ accompanying accountants' report. -17- 7. _ _ ,�. 2 --.;. '� '�,"4�►-'o-a_ �._ .ram' � s..C ...�-_. .�.5 ' 'E�. }E* � ,. •.i • .` '..;ti.� ... _,!aii�• x.' .y i .� �'� '1�1�� L� � 1' t=}fir.._ '�..2 `ti,,•��`c� �7 _ _ �'t[ f'-.�__ti � '•^ti-`"�`� +v �j"a�'- ...��,•� is- 'i - .. - •l •4- ... _ �<-•a:_��&"•`L. 'b. '= :�-�='V` �-ram SIM 43 � .� \ - .+..�• 4� `,aye i'� _ - CIM OF.in,,, IR WATER UTILM' FUMS- , k STlITFJiffimrs OF urAPPRoPRiAM sum us For the year ended June 30, 1966 190 Water 1963 Water 1963 Water &,venue Revenue Revenue Bond Bond 1963 hater Water r-ond Interest and Investment Revenue Utility Construction Redemption Revenue Bond Reserve Adjuetmer+ts Fund Fund Fund Fund _ Fund Total (Note) Ccasbined BALM.-CE, JULY 1, 1965 $ 462,523.10 $ 111,389.72 $ - $ - $ 182,480.00 $ 756.392.82 $(227,589.69) $ 528,003.1 ADD: Revenues 1,125,869.67 8,396.89 - 765.76 7,735.00 1,142,767.32 - 1,1.-+2,767.32 Reimbursements for transmission main (Feeder No. 2} - 14,502.03 - - - 14,502.03 - 14,502.03 Adjustments of prior year's accounts receivable 7.69 - - - - 7.69 - 7.69 Adjustment of surplus invested in fixed assets 70,933.97 - - - - 7D,933.97 - 70,933.97 Adjustment of refundable deposits 11.70 - - - - 11.70 - 11.70 Portion of bond principal accrued in Bond Redemption Fund - - - - - - 13,333.28 13,333.28 Reserve for amount due General Fund for retirement of general obligation bonds, July 1, 1965 668,325.00 - - - - 668,325.00 - 668,325.00 Reserve for encumbrances, July 1, 1965 1,640.9? - - - - 1,640.97 - 1,640.97 Refund from West Orange County WateT Board 91012.70 - - - - 9,0 2.70 - 0 12_70 TOTAL BALANCE AND ADDITIONS 2,338,324.80 134,288.64 765.76 190.215,00 2.663.594.20 (214.256.41) 2,449,337.79 DEDUCT: Expenditures: Operating 425,904.96 - - - - 425,904.96 - 425,904.96 Non-Operating 333,778.90 - - - - 333,778.90 - 33311-778.40`• r Additions to fixed assets 689,674.01 = - - - 689,674.01 (79,967.77) 609,706.24 Additions to fixed assets transferred to utility fund fixed assets - 134,288.64 - - - 134.3298.64 (04,288.64) - Transfers to other funds 49,875.00 - - - - 49,875.00 - 49,875.00 Reserve for encumbrances, June 30, 1966 3,824.27 - - - - 3:A24.27 - 3,824.27 Reserve for ancunt due General Fund for retirement of general obligation bonds, - - - - - June 30, 1966 618,450.00 618,454.00 618,450.00 Write off of uncollectibie accounts receivable 17.515.75 17,515.75 17.515.75 - TOTAL DEDUCTIONS 2,139,022.89 13E*,288.64 - - 2,273,311.53 f214,256.41 2.059,055.3,2 BALANCE, JUNi: 30, 1966 $ 199,301.91 765.76 $ 190,215.00 $ 390,282.67 330,2882.67:.-- Note: Adjustments remove from unappropriated surplus; the change in investment in fixed assets. See accompanying accountants' report. T• --M`y- i Yam~"V ��E�� ,-4i�:a`�` - ==�y�ice.`i C`-i! { .. �� �S.• '„��.^'S '�.^ ,vim •'�`.'�� � `� � I E CITY OF HUNTINGTON BEACH WATER UTILITY FUND STATEMENT OF INCOME For the year ended June 30, 1966 OPERATING REVENUE: Metered dales 0- 974,002.99 Unmetered sales 4,996.12 Municipal sales 4,553.81 Irrigation sales may,6,828.66 TOTAL OPERATING REVENUE 9 90,381.58 OPERATING EXPENSES: Source of supply: Operation $ 2,359.08 Maintenance 835.59 Purchased water 198,469.06 201,663.73 Power and pumping: Operation 3,118.24 Purchased power 22,783.03 Maintenance 6,407.66 Pumping tax _.6,5,685.;40 97,99C33 Water treatment: Operation 9,703.14 Plant maintenance 738.07 Equipment maintenance „ 2.70_ 10,443.91 Transmission and Distribution: Operation 11,728.35 Maintenance 17,701.21 Meter maintenance 7,809.33 Hydrant maintenance 917.28 Service maintenance 1,110.53 Meter test and repair 2,942.49 Other 183.03 42,392.22 Customer Accounting: Meter reading 11,907.20 Billing 26,566.77 Collection expense 6,237.83 Other ,3„,1517.76 47,909.56 Administration and General Expense: Supervisory salaries 11,928.00 Conferences and conventions 772.31 Office supplies 409.83 Utilities 358.57 Retirement 8,546.63 Maintenance 548.24 J Uniform allowance 84.57 22,648.15 See accompanying accountants' report. -19- • I • I C11Y OF HUNTINGTON BEACH WATER UTILITY FUND STATEMENT OF INCOME (Continued) . For the year ended June 30, 1966 OPERATING EXPENSE: (Continued) Other expense: Vehicle operation and maintenance $ 1,672.21 Radio repair 629.89 Other 550.96 5�2,853;06 TOTAL OPERATING EXPENSE 422 904 .96 OPERATING INCOME 564,476.62 NON-OPERATING REVFNUE: Acreage service fees 74,626.13 Fire hydrant rentals 15,685.00 Reimbursable services 2,069.46 Interest earned 10,809.56 Other 32.1297.94 TOTAL NON-OPERATING REVENUE 135,488.09 LESS NON-OPERATING EXPENSE: Depreciation 117,551.95 Fiscal agent fees 1,650.50 Interest transferred to General Fund on G. 0. Bonds 49,875.00 interest on 1963 Revenue Bonds 154,100.12 Payments to City in lieu of taxes 29,711.45 W.O.C.W.B. expense 17,748.89 Payments on reimbursable services 13,0015;,99 TOTAL NON-OPERATING EXPENSE 383.653.90 NET NON-OPERATING INCOME (LOSS) (249,1�65.81 NET INCOME 316,310.81 See accompanying accountants' report. -20- I I� SUPPLEMENTARY COMMENTS I r , { CITY OF 11uNTINCTON BEACH SUPPLEMENTARY COMMENTS TREASURER'S CASH: • Treasurer's cash balances at June 30, 1966, consist of the following: • M-mand Deposits: Security First National Bank, General Account $ 217,487 21 Security First National Bank, l'ruqt Account - Security First National Bank, Water AccounL 26,787.20 United California Bank, General Account 53,806.62 Uni.tad California Bank, Special Assessment Funds 6,104.88 United California Bank, Treasurer's Trust Fund 78,«52„ 0.000 Total Demand Deposits $ 382,705.91 Time Deposits: Security First National Bank 1,789,394.23 United California Bank 625,000.00 Bank of America 500,000.00 Crocker-Citizens National Bank 500,000.00 Huntington-Valley Bank S,901000.00 Total Time Deposits 3,914,394.23 TOTAL TREASURERS CASH IN BANKS 14,297 100.14 It is required by the Government Code that banks holding funds of public entities pledge with a trustee agency collateral in the amount of 110% of the public funds on deposit. We determined by direct correspondence with the trust--es of each of the City's depositories if adequate collateral had been pledged. All depositaries had met this requirement. See: accompanying accountants' report. -21- ,w REVENUES: Revenues of the General Fund totalled $3,807,560.79 for the year ended June 30, 1966, an increase of $389,491.55 over the previous year. A comparative statement of revenues follows: Increase 1964-65 1965-b6 Decreasr) Property taxes $ 1,270,593.24 $ 1,527,990.74 $ 257,397.50 Interest a-id penalties on delinquent taxes 4,386.97 7,899.33 3,512.36 Solvent credits 598.80 902.50 303.70 Aircraft taxes 300.04 300.04 Water utilities in lieu taxes 24,467.84 29,711.45 5,243.61 Franchise, utility 61,210.26 75,441.66 14,231.40 Franchise, dry gas 2,973.94 1,888.22 (1,085.72) Franchise, pipeline 11,712.42 10,631.95 6,919.53 Sales and use taxes 474,456.59 560,666.41 86,209.82 Occupancy tax 7,052.56 17,404.91 10,352.35 Business licenses 95,763.05 100,482.51 4,719.46 Subdivision licenses 312,200.00 202,700.00 (109,500.00) Bicycle licenses 261.00 718.00 457.00 Oil derrick licenses 19,559.60 19,517.20 (42.40) Building permits 219,485.75 226,244.75 6,759.00 Plumbing peru,its 75,810.86 83,853.60 8,042.74 Electrical permits 72,587.33 69,829.96 (2,757.37) Heating permits 19,917.40 27,165.95 7,248.55 Excavation, streets and curb permits 24,514.82 54,866.61 30,351.79 Waste water disposal permits and fees 20,290.00 15,907.50 (4,382.50) Lifeguard services 85,831.34 30,698.00 (55,133.34) Beach maintenance 11,853.75 11,967.19 113.44 Court fines, non-traffic 39,406.38 48,993.47 9,587.09 Interest income 17,384.54 26,242.52 8,857.98 ' Land rental 35,407.20 42,240.00 6,832.80 Building rental 12,242.00 14,199.32 1,957.32 Pier rentals and concessions 9,108.15 8,773.37 (334.78) Beach rentals and concessions 31,937.38 27,069.76 (4,867.,)2) Golf course rental 38,260.23 32,822.65 (5,437.58) j Royalties and easements 17,477.91 28,036.31 10,558.40 Parking lot collections 37,873.50 45,558.00 7,684.50 { See accompanying accountants' report. -22- 1 i Increase 1964-65 1965-66 (Decrease) Trailer coach license fees $ 9,608.99 $ 14,907.56 5,298.57 State alcoholic beverage license fees 16,852.95 21,674.70 4,821.75 Oil and gas lease 43,818.91 39,952.58 (3,866.33) County grants - lifeguard and beach maintenance - 54,000.00 54,000.00 Zoning and subdivision fees 33,862.50 29,660.60 (4,201.90) Oil well application fees 4,300.00 8,803.50 4,503.50 Sale of maps and publications 2,573.29 1,963.05 (610.24) Special police department services 2,J34.80 3,205.30 370.50 Engineering fees and inspection fees 110,672.54 120,912.56 10,240.02 Plan check fees 101,070.00 101,793.75 723.75 Weed abatement 18,795.66 23,471.12 4,675.46 Other revenue _19.054,.79 ^, 28,492.19 , 9a437.40 TOTAL REVENUES $ 3,418,069.24 $ 3.801,560.79 1 3894491.55 1963 WATER REVENUE BONDS: The following comments are made in reference to the accompanying balance sheet of the water utility funds. 04* Pursuant to Resolution #1730 adopted by the City Council, a special election was held on April 30, 1963, for the purpose of submitting to the voters the proposition of issuing water revenue bonds in the amount of $5,700,000.00 pursuant to the Revenue Bond Law of 1941. The proposition was approved by the voters and on November 1, 1963, the City sold a portion of the bonds amounting to $3,750,000,00. Under the provisions of Resolution #1844, certain cash accounts were established to assure the proper disposition of bond proceeds and provide • for the repayment of such bonds in a systematic manner. Payments may be made: from these accounts only as provided by law and the resolutions mentioned abcve. r See accompanying accountants' report. -23- 1963 WATER REVENUE BOND INTEREST AND REDEMPTION FUND: Payments from t'!is fund are restricted to bond int:erent maturities and bond redemption of the water revenue bonds. For the purpose of paying the matured interest, the bond resolution requires that the fiscal agent set aside out of the bond revenue fund at least • one-sixth of the semi-annual interest maturity each month. For the purposes of bond redemption, the resolution requires that the fiscal agent set aside each u.onth out of the revenue fund at least one- twelfth of the amount of the bonds that will mature and be payable within the ensuing year. Money in this fund may be temporarily invested in any authorized investments provided that the maturity of such investments is not later than the date that money is required for the payment of bond interest or redemption. The fiscal agent for the City is authorized to make such investments. 1963 WATER BOND INVESTMENT REVENUE FUND: The cash balance in this fund represents that portion of the interest earned on the Bond Interest and Redemption Fund cash invested by the fiscal i I agent, not yet paid to the City. This fund is not required by the Bond Indenture and is adjusted to the fiscal agents' records annually. 1963 BOND RESERVE FUND: From the proceeds of the bond issue an amount of $175,000.00, • (a sum equal to the maximum annual debt service) was required to be set aside !.n a Bond Reserve Fund. This fund is restricted solely to the payment of principal and interest on the bonds in the event that insufficient ironies are not available from the Bond Interest and Redemption Fund. Any monies used i 1 See accompanying accountants' report. -2G- i 1963 BOND RESERVE FUND: (Continued) out of the Bond Reserve Fund for purposes within its restrictions, are to be replaced immediately from the Bond Surplus Fund or the Bond Revenue Fund. 1963 WATER BOND - CONSTRUCTION FUND: After the establishment of the required reserves descriLed above, the remaining bond proceeds were placed in the Construction Fund. At June 30, 1966, there was $4,411.33 in cash in this fund. Any sum remaining in this fund after the full accomplishment of the purpo.ies of the bond issue, is to be transferred to the Water Fund. GENERAL COMMENTS ON 1963 WATER BOND FU14DS: Sufficient review and examinations were made to satisfy ourselves that the necessary steps had been taken by the City for compliance with the prcvisions of the bond resolutions. Bank balances were reconciled with balances confirmed directly with the bank for each fund. Collateral pledged by the banks as security for City funds on deposit with them was confirmed directly from the trustee agency. Cash was provided to each of the required funds as required by the bond resolution. The Security First National Bank, Main Office, Los Angeles, California, is the designated fiscal agent for the City. i i �i See accompanying acct-un, ^'it5 ' report. I -25- f �,I ,LLj;L,.j0j Di F_H L EV,10,- At J C C014 PAN Y PLID( IC AL;,70(,'I4TA!jrz, 11CRIt. JOI SOLV" LINCO01 Slaccir no"a.PLIERS.C.P.A, eAhTA ANA,CkL1Pr.1F1'4.A W2706 UJ8TA S1AA1S.,CAL1FC%:JtA DONALD H.PCIr'1S0N.C.Fk A WALK at M-88Y6 POWN C.P.A. DONALD C.CALLAIJAN.C.Pt A. six "Dort##1 fraver L.PSY[M 2Cb41R9R.C A A November 9, 1966 LOMPOC.CALIFORVLA, JORN A.RAAStM C.k A. Itragwr*-*jet The Honorable City COUnLl I City of Huntington Beach Huntington Beach, California Gentleman: In connection with our examination of the records of the City of % Huntington Beach for the year ended June 30, 1966, three points came to our atte.,j- tion which might be of sufficient interest to report to you at this time. Theme points were discussed wich the Director of Finance. 1. We noted throughout the year that daily cash receipts collected by otiter departments were not being turned over to the City Treasurer'n office d:iii. Ac we have mentioned in numberous previous letters and reports, this Pr ct cc constitutes a weakness in internal control over cash and cash control. For example In May, 1966, we discovered two checks being held by the Engineering Departmept, both payable to the City of Huntington Beach, dated June 30, 1965 or print-. These checks totaled $551.56. Apparently both checks were first held pending a future determination and then were overlooked in the files. This was discusser; with the Director of Public Works. We suggert that even if the ultimate ,isposiLion of certain receipts cannot be determined they should be dqpLsItcd, and recorded in a Trust and Agency Account where they will not be overlooked. 2. The present procedire of departments collecting receipts and alga maintaining the billing and accounting functions relating to their sources of revenue LE a serious weakness in internal control. One of the basic procedures in achieving a good system of internal COIILL01 telatea to the segregation of duties, so that no one employee can control an entire trans- action. For example, the employee preparingla permit should not also collect for that pat-nit, and valida..s that permit. In the Water Department, the persons responsible for preparation of the billings, including computations and mailing of billings, should not have an opportunity to also collect for the billing, and to also mintain stibsidiary ledgers or controls of uncollected water billings. We feel thaL the proposed central cashiering SynLctn to be initiated by the Clity will remove this serious conflict and improve the City's internal control over the cash and cash transactions. i ! l I The honorable City Council City of llurttington 1;criCh -?- November 9, 1966 ' 3. Our inil ial examinatiOT1 of accotntts recei:able for water billings dis- closed that a significant a.nuunt (If the accounts receivable at June 30, 1966 were probably rmcollectible, our ,••;amination in this area included confirmation of water accounts rt�L:ivable , and a detailed review of the ending balance. These t-es• :: revealed that the total amount of accounts receivable represented by "closing; hills" increasi•d ftor.i $11,83i.0',, as of Juno 30, 1965, to $25,660.61 , as of Junt• 30, 1960. in past periods there was reason to believe that significant anioutits of ihusv closing; bills would be collected, since after a certain period of time had t;lapsed thi•y were: turned over to collection agencies for collection. however, 1,istorical experience has revealed that these collections are not being; made. Mailing of confirmations of the closing bills r. , • . i" ', .t.. ; • . • , , T•T ierf \' of tt.ese confirmations being; retartred by Lm- pots! office. A few customers ma:a pay- ments on their closing; bills to the City and a few sent us the money wiich we turned over to the City. This pointt•d out the fact that perhaps wish stricter well defined collection procedu.es and prompt action the City might be successful in collecting; many of the• closing bills. All closing; bills over one year old .ere deemed uncollectible and therefore were written off and a charge was made to the Water Utility Fund Unappropriated Surplus in the amount of $17 ,515.75. We discussed this write-off with officers of the City. 7 Very truly ;,-ours, DIEHL, EVANS MID C014PAIIY Bye 1 U 5 3.17 QUOU 00000 9 2.52 4.000 00000 + 2.3132.00000000 4- 1116.076,00000000 0 1.71 5.000 00000 u 1 46.07 6.0000 1.715.0000 + 149.791.0000 0 174.841.0000 - 2J,Oa 0.0000 28.639.8100 54.767.6100 + 146.2700 + 58 5.0000 + 84.138.6900 0 244.4000 37.5000 + 124.030.8000 + 12,5000 + 719.9000 + 6.0500 + 74.809.0000 + 1.31 6.7000 + 1.237.5500 + 41 8.6500 + 729.7400 + 203.612.7900 0 84.138.6900 + 287.751.4800 0 303,404.6200 - •1 ).6»,1400 • i I I I i ,r• f'4!- 1«m M5c'9 wpw — 7 f � '.7 l �✓ a �_1�✓ ' 'arssuaars.rr ats� +.era assr.=.=arrnv (1) (2) (3 (A) 15I (91 171 (e) N .10 1.. 11-7 ir TT alb$/ ,--- i i � ►.,m r1s.1 i r I a /�j % / r:., -�f//•'i,' fir a . i._, ._.------ - -�_.__. 17/ 1 1 421 I 131 2 � , 41 14 Is I I I 1� fr f'wo . } 9 ! t p f 17 27 21 30 34 it 9 4 . . � 1_. �-• — + -} - Is 41 4241 1 1