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HomeMy WebLinkAboutComprehensive Annual Financial Report - Fiscal Years Ending i i l .! 11 1f ij COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF HUNTINGTON BEACH FIWAL YEAR ENDED JUNE 30, 198_% r- t .J i J 1 " I ,f • i .J I� I i' •owl� CITY OF HUNTINGTON BEACH 1 COMPREHEwSIVE ANNUAL FINANCIAL REPORT Fiscal year ended June 30, 1985 Table 'of Contents INTRODUCTORY SECTICH Page Number Table of Contents Letter of Transmittal 1ii-xi Elected and Administrative Officials xii Organizational Chart xiii FINANCIAL _SECTION Schedule „i Accountants' Report 1 -� General Purpose Financial Statements: Combined Balance Sheet - All Fund 'hypes and Account Groups A-1 2 - 3 (;mbined Statement of Revenues, Expenditures - and Changes in Furd Balances - All Governmental Fund Types A-2 4 - 5 Combined Statement of Ravenuvs, Expenditures and Changes in Fund Balances - Budget and Actual General, SSY-vial Revenue and Debt :service Fund Types A-3 6 - 8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 9 Combined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 10 Notes to Financial Statements 11 - 32 Financial Statements of Individual Funds and Account Groups: General Fund: Comparative E.-lance Sheet B-1 33 Statement of Revenues Expenditures and Changes in Fund Balance - Budget and Actual B-2 34 Special Revenue Funds: Combining Balance Sheet C 1 35 - 36 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 37 - 38 Combining Statement of Revenues, Expenditures _. and Changes in Fund Balances - Budget and Actual C-3 39 - 44 -r 0 as Page Schedule Number ` Debt Service Funds: Combining Balance Sheet D-1 45 - 46 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 47 •• 11 ! Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual D-3 49 - 51 Capital Projects Funds: Combining Balance Sheet E-1 52 - 53 Combining ,Statement of Revenues, Expenditures and Changes in Fund Balances E-2 54 :. 55 i Enterprise Funds: Combining Balance Sheet F-1 56 - 57 Combining Statement of Revenues, Expenses and ` Changes in Retained Earnings F•-2 58 - 59 Combining Statement of Changes in Financial Position F-3 60 - 61 r r Internal Service Fundss Zombining Balance Sheet - 1 62 Combining Statement of Revenues, Expenses and f' Changes: in Retained Earnings G-2 6,3 �.. Combining Statement of Changes in Financial Position G-3 64 Agency Fund: ` Statement of Changes on Assets and Liabilities H­1 65 I � General Fixed Assets Account Group: Schedule of General Fixed Assets by Source I-1 66 + General Long-T•_rm Debt Account Group: r" Statement of Changes in General Long-Term Debt J•-1 67 STATISTICAL SECTION ,-- Exhibit 4" General Fund :Revenues by Source - Last Ten Fiscal Years A 68 - 69 w General Fund Expenditures by Program - fast Ten j Fiscal Years 9 70 Property Tax Levies aid Collections - Last Ten Fiscal Years C 71 - 72 General Bonded Debt RJtioa - Lnst Ten Fiscal Years D 73 - 74 Property Tax Rates - All Overlapping Governments - .- Last Ten Fiscal Years x 73 Computation of Direct and Overlapping Bonded Debt r 76 Computation of Legal Debt Margin G 77 Water Revenue Bend Coverage - Last Ten Fiscal Years H 78 - 79 + Ccnstruction Activity and Bank and Savings and % �- Loan Deposits - Last Ten Fiscal Years I s0 J Principal Private Employers 1 81 � Insurance in Force K b? - 83 Demographic Statistics L 84 Miscellaneous Statistics H 85 t , CITY OF HUNTINGTON BEACH 1.4 N .I 2000 MAIN STREET CALIFORNIA 9260 November !4, 1985 I The Honorable Mayor and City C:oun:Il ; City of Huntington Beach, California Mayor and Counrilmemberes We rare pleased to submit to you the Compreh3nsive -Annual Financial Report of the City of Huntington Beach for the fiscal year ending Lune 30, 1985. We believe the data, as presented, Is accurate In all material respects and presents tl-e financial activity of the City In a manner that will enable the reader of this report to fully understand the fiscal position of the City. The :inancial statements are prepared In accordance with the pronouncements of the Government Accounting Standards Board (rASB) and Include the report of our Independent certified publl.: accountants, Diehl, Evans and Company. The report consists of three parts: 1 !. introductory Section - letter of transmittal, City Organizational Chart and principal city officials. 2. Financial Section - combined financial statements, combining financial statements and footnote disclosures. 3. Statistical Section - pertinent financial and non-financial data that gives �-� readers a broader perspective on our City. t~ ACCOUNTING SYSTEM AND BUDGETARY CONTROL l The City's financial statements are prepared on the modified accrual basis for all l governmental fund types except for the financial statements of the proprietary fund types which are prepared on the accrual basis. The City's system of Internal control is designed to provide reasonable, but not absolute assurance that City assets are safeguarded against Joao or misuse. The City hab been careful to analyze specific internal controls to ensure that the cost of implen.anting a control does not exceed the expected benefits. { i I i i • The City Council adopts the armual budget by resolution and may amend or revise the budget at anytime. 8udgetery control Is maintained at the df partmental level. The City Administrator can transfer funds from one object category to another without Increasing the totes budget of any department. The City utilizes the encumbrance system of accounting where outstanding encumbrances are reported as a reservation of fund balance at year-end in governmental fund types. These outstanding encumbrances are then reappropriated Into the new fiscal year. n REPORTING ENTITY AND ITS SERVICES 1 , Huntington Beach Is a full-service City, including public safety, parks and recreation, I planning and zoning~ public works and related administration. E j This report inrludea the financial activity of certain separate legal entities whose r activities are effectively controlled by the City. These entities are: HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION (119PFC) - This entity was formed in 1970 solely to issue bonds to finance the construction of the Civic Center and Central Library complexes. The HBPFC then entered into a long term leasing arrangement with the City where title to the facilities passes to the City at the end of the lease. The lease payments to HBPFC are to be used to retire the debt and to make capital Improvements to the facilities. The original governing board of HBPFC was appointed by the City Council. ►... REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH (THE r REDEVELOPMENT AGENCY) This entity was formed In 1967 to f9cilitate the Y redevelopment of certain areas of the City. The City Council serves as the governing board of the Redevelopment Agency. [BARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH (PARKING AUTHORITY) This entity was formed In 1967 to solely issue bonds to finance the construction of off-street parking facilities and then lease these to the CIty. The Parking Authority's governing body is the City Council. t i WEST ORANGE COUNTY WATER BOARD Huntington Beach serves as fiscal agent for this entity which provides for the construction, operation and maintenance of a water distribution system to various cities. The activity of this entity is recorded In thu Water Utility Fund. There are many other governmental agencies, including the County of Orange, the Huntington Beach 9nd Ocean View Unified School Districts, as well as the Coast Community College District which provide services within the City. These entities have Independently elected governing boards anJ are not a component unit of the City of Huntington Beech and their financial information is not included in this report. -iv- r � GENERAL GOVERNMENT FUNCTIONS , .� General governments] fui)ctions include the operations of the General, Special Revenue, I i Debt Service and Capital Projects Funds. Below is an analysis of general governmental revenues which Increased by $7,014,302 or 10.6% over the prior year and a axplanaUan of the fluctuations: Percent Amount Ansount Change 84/85 83/04 from 83/84 J it Property Taxes 17,638,321 16,9350465 4.2% Other Taxes 25,923,113 22,8781559 23.9% Licenses and Permits 599630411 5,0990573 16.9:. � Fines, Forfeitures do Penalties 29093,975 1,923,143 8.9% From Use of Money '& Property 5,895,407 611779364 (4.6%) From Other Agencies 12,808,344 99937,325 29.7% I Charges for Current Service 2,261,424 2,009,901 12.5% Other 36,4J156 _ 1,0�9 (65�.4) .� Total #73.051 3 6. 13.849 10.6% The Incresae In property tax revenues is due to normal reassessments of property under the guidelines and new development of Article 13-A of the California ConatituUnn. j . The increase In other tax revenues Is due to ia:ge Increases In sales and utility �- tax revenues. . License and permit and charges for current services was higher because of II Increased residential and commercial developrinent In the City. -, . Revenue from the use of money and property decreased a small amount due to lnwer Interest rates. ) . Revenue from other agencies Increased due to the reinstatement of the motor i vehicle In lieu state subventions which brought in an additional $4.1 million dollars. But there was also decreased grant activity In special revenue and capital projects funds which offset some of the o*her increases. ! [' Revenues from fines, forfeitures and penalties Increased due to more citations for traffic and general activity. ` Ocher revenue decreased substantially largely because $426,000 of Insurance money on pier damage from the March, 1983 Ptorm was received in fiscal year 1983!84. No such transaction occurred in fiscal year 1 0.84/85. i i i -Y- �J • Below Is an anolysib of general yovernmental expenditures for the year and a compnrlson with the prior yeor followed by an eyplanution of significant fluctuatinns: Percent Amount Amount Change 84/85 63/84 from 03/84 City Council 128,635 11!,048 15.8% { . City Administrator 730,966 480,390 52.1% City Tre.surer 267,882 i 41,158 89.1% City Attorney 806,146 729,693 10.5% C City Clork 154,834 163,473 19.2% Administrative Services 29558,796 2,362,261 8.3% Development Services 1,7599542 116329865 M% Fire 91493,834 8,568,812 10.8% Police 17,122,642 15,6019080 9.7% Community Servlces 59286,948 5,070,115 4.2%' r` Public Works 131651,510 1295282418 9.0% ti . Housing & Community Dev. 966,384 685,654 40.9%' Non-Departmental 4,867,215 3,740,992 30.1%, Capital Outlay 7,873,719 E,6201833 (8.6%)• F Debt Service IJ096,104 1,,830,l49 3.6% Total 67.e0 5 $62.266,9._ l 0.2% r City. Council Expenditures increased largely because the Secretary to the City Council position was filled for the entire year. In 1983/84 the position was vacant for a portion of he year. ;.., City Administrator - Expenditures increased due to the addition of the Productivity and Research Program this year. In prior years, this program was distributed to various departments. `- C1ty„Treasurer - Expenditures Increased because of a $64,nOD contract with Golden State Sanwa Bank to handle water and receivable billings. In prior years, �- this V. -13 done free of charge. r City Attorney - Increased personnel costs due to higher ectivity In civil litigation. . Cif Clerk - An election In Nofember, 1984 caused Increased expenditures. There was no election In the prior year. Administrative Services - The increase Is due to normal merit and coEt-of-living raises granted city employees and slightly higher operating costs. . Development Services - The Increase Is .'ue to normal merit and cost-of-living raises granted city employees and slightly higher operating costs. . Fire •. Increase largely done to the expansion of the Reserve Firefighter Program from 30 to 60 reservists on July 1, 1984. -vi- J Police The increase is dua to normal increases and nine full-time positions added on July 1, 1984. Community Services - The smaller then expected Increase is due to an elimination o? two management positions on July I, 1984. Public Works - The increase is caused by normal Increases and increcsed activity on tho maintenance of the City's Infrastructure. Housing and Community Development - F1'gher due to increased activity in the Redevelopment Agency and Increase in rehobilitation loan activity. 1 . Non-Departmental - The increase Is due to $1.1 million transferred to the Self Pq nsurance Fund for liability claims. Capital Outlax - Lower due to decreased capital project activity in Special Revenue and Capital Projects Funds. Debt Service - Changes in these expenditures is due to requirements of bond indentures. 1 PROPRIETARY FUNDS I �+ The City operated three enterprise funds and two Internal service funds during the year. Enterprise funds Include the Water Utility Fund, the Meadowlark Golf Course fund and the Emerald Cove Housing fund and are supported primarily through user �., charges to the public. The internal service funds include the Self-Insurance Fund and the Equipment Replacement Fund and are supported by charges to user departments within the city. Shown below is a table comparing the performance of the City's enterprise funds to the prior year. (The Emerald Cove Housing Fund was not In existence In the prior .1ar). 7 Meadowlark Emerald Cove Water Utility Golf Course Housing i 1985 1984 1985 1984 1785 -' Operating Revenues 7,508,521 69386,071 2091-425 188,311 168,525 Operating Income (Loss) (1,3689003) (1,435,9.56) 168,483 1479368 43,033 Net Income (882,781) (878,613) 75,826 73,774 120,715 Income Available ! fo* Debt Service 362,782 377,766 244,143 210,361 120,715 Dedt Service 202,718 218,700 150,000 150,000 N/A Debt Service Coverage 1.78 1.73 1.63 1.110 N/A 1 i -vii- i The Water Fund met al. IncumP and debt service requirements of the 1963 Water Revenue Bond trust indenture. The net loss is largely due to depreciation recognized on the i systtm's fixed assets. Debt service coverage Information for the Emerald Cove Housing Fund will be available In fiscal year .985/86 since interest coats were capitalized in the PM currant fiscal year, due to requirements of governmental accounting standards. Below is a table comparing the performance of the City's internal service funds to the r prior year. (The Equipment Replacement Fund was not in existence In the prior year). Self Insurance Equipment Replacement ' 1985 1984 1985 r Operating Revenues 21352,842 2,:97,964 4779305 Operating Income (1,9479394) (2,513,598) 385,653 r Net Income (1,5729809) (21076,975) 6019869 r• The net loss In the self-insurance fund Is expected to be made up in future year increases cherges to user departments and/or transfer from the General Fund. w.. FUND EQUITIES `.. Total fund equities Increased $840.953 or 1.3% as shown in the tabl.: below: Total Fund Total Fund Percent Equity 84/S5 Equity 83/84 Increase (Decrease) j Governmental Fund Types General $I1,646,077 $10,3829894 12.2% Special Revenue 14t906v94cJ 12,550,903 10.0% Debt Service 5,992,855 50859,901 .1% r" Capital Projects 895,906 6,180,057 (65.6;'s) Total $33,341,786 $34,973,755 (4.6%) Proprietary Fund Types Enterprise 34,001,124 32,557,342 4.4% •" Internal Service 363,007 (666,053) N/A '— Total $344 364,131 $31,891,289 7.8% .— Grand Total $61,1051.9 7 66,865,04i l�o -viii- Q . The large equity increases in the general and special revenue funds show the financial health of the Cty's general operations. Tha equity decrease in the capital projects fund and the small equity Increase In the debt service finds is due to the completion of the Emerald Cove Housing Project and Its subsequent reclassification as an enterprise fund. The Equipment Replccement Fund began operations du,Ing the year with a $2.6 million lcllar final fund equity which caused the largn inernase in fund equity for internat :service f Jnds. ACENC Y FUNDS (: Total assets and liabilities for the City's Agency funds increased by $1,330,795 or 23.2T1 � to $5,7329037. This is due to increased employee participation 1.1 the City's deferred compensation plan which Is the only Agency fund maintained. DEBT ADMINISTRATION Summarized below is the City's outstanding long-term debt at June 30, 1995. Description Amount Outstand[nG �.1 General Obligation Bonds 1970 Park Bonds 31425,000 Revenue Bonds 1963 Water Revenue Bonds 10111,000 ..� Parking Authority Bonds I v 170j000 -' Redevelopment Agency CertiflcPtes of Participation � I Emerald Cove Housing Project 49600,000 1 Leasehold Mortgage Bonds HBPFC Civic Center - Iat Issue 79840,00C —� HBPFC Library - 2nd Issue 31600,000 Notes Payable Meadrwlark Golf Course 11804,917 San Joaquin Reservoir 366,312 -- Stat3 Coastal Conservancy 208,900 (` Lease Obligations 212,331 Other Compensatcd Absences (Vacation/Sick Leave) 21958,925 Redevelopment Agency Debt 51994,195 ;elf Insurance Claims 5,186,000 Y3 91 i 1 A further analysis of the City's bonded Indebtedness is included in notes 9 and 10 to the financial statements. i -ix- r 1 r R 1 CASH MANAGEMENT r i The City Treasurer Is responsible for Investing available rash in investments allowable by law. These includn certificates of deposit which are either government insured or co!lsterallzcd, government securities Including SBA loans and Treasury Nutes, and the Stage Treasurer's Local Agency Investment Fund. The crsh management system of the 1 City is designed to monitor rind forecest revenues and expenditures to insure the P. Investment of monies to the fullest extent possible. The criteria for selecting i investments are, In order of priority; a) safety, b) liquidity, c) yiold. The average total of non-restricted cash and term investments duuring the year was r $30,739,834, which earned Interest of $3,408,730, for a return of 11.08%. At I June 30, 1985, 91.6% of the City's total Investments matured In lass than .565 days. r During the year, the California Gnvernment Code was amended to require the City Treasurer to prepare an annual statement of investment policy and monthly report containing specific Information regarding the City's investment policy. The ity Treasurer has compiled with this new law. FIXED ASSETS r The general fixed assets of the City are usad for general governmental functions and do i not include the fixed assets of enterprise and internal service funds. At June 30, 1985, the City's general fired assets amounted to $66,617,843. This amount represents the rI original cost of t ,e assets and Is considerably less than their present value. Depreciation of general fixed ;sets is not recognized. The City implemented an Equipment Replacement Fund during the year. This fund Is f operated as an internal service fund and all equipment purchased which replaces existing equipment will be recorded In this fund, and leased to user departments. r In the future, the general fixed assets total will Increase at a lesser rate due to fixed . asset retirements because much of the City's new equipment purchases will now be capitalized in the Equipment Replacement Fund and not recorded as general fixed assets. !— I FUTURE OUTLOOK r Huntington Beach has always been known as a desirable place to iive and work. A balmy, clean-air climate, a coaat:l location and a strong local economy have always lured people L and Industry here. But our future Is not without challenges. Housing and transportation concerns continue to Impact all of Orange County while the public pushes for reduced government costs without decreased services. We are also facing cutbacks In the Federal u_ Revenue Sharing and Community Development Block Grant Programs. There is the continuing possibility of new legislation limiting the City's ob!I:ty to generate revenue. r The defeat of Proposition 36 In 1984 did not eliminate the possibility of similar Initiatives and we must continue to practice fiscal prudence. We are very confident, however, that the City wlil meet these challenges. Our major revenue sources; property tax, sales tax, utility tax and all related revenues are diverse and stable enough to help provide a vinble economic base. We are prepared to absorb cutbacks in Federal programs since we have not developed a reliance on them In our operating programs. -x- Redevelopment of older areas In our City will play a vital part in future economic growth and stability. There are plans end construction underway for new hotels, shopping, theatres, office and residential construction in the five redevelopment areas. Redevelopment not only benefits people and businesses that rasidp In project areas, but the entire City as well. It can be used as a partnership teal between the private and public sectors to attract new industry and housing r.o Huntington Beach which will enhance thb quality of life for everyone. In short, Huntington Beach's future lies in the hands of its citizens. We can help by providing the citizens well run, and efficient government which helps carry out their desires. � SINGLE AUDIT in accordance with the Single Audit Act of 1984, the City's grant p.ograms which -tilize Federal funds, either directly or passed through from state or county agencies, have peen -subjected to audit requirements of the Federal Office of Manegement and Budget. This Included tests of compliance with Federal laws snd regulations and an organization-wide examination of firancial operations. The results of this expanded audit of grant ectivity are included under separate cover. FINANCIAL REPORTING CERTIFICATES Substantial Improvement in repnrt format and disclosure have been made to this year's report In order for the City to apply for certificates of conformance In financial reporting from the Governme:it Finance Officers Association and the California Society of Municloal Finance Officers. ?n order to be awarded a certificate, the City must publish r., an easi,y readable and efficiently urganized con.:irehen i•,a Annual Financial Report which T� must conform to industry standards. The report n+ust satisfy generally accepted accounting principles anJ legal requirements. IL is our belief that this report now conforms to these standards. ^� ACKNOWLEDGEMENTS "'! We wish to thank the C.ty Council and the various City departments for conducting the fiscal affairs of this City In a responsible and progressive manner. We would also like to thank the members of the Accounting Division for their work in the preparation of this .., report. /r DAN T. VILLELLA � Director of Finance RT FR , hief Administrativ Services Depart( nt DTV:skd `- -x i- 0004J w r L J v- CITY OF HUNTINGTON BEACH PRINCIPAL CITY OFFICIALS CITY COUNCIL Ruth S. Bailey Mayor Robert P. Mandic, Jr. Mayor Pro Tem Ruth E. Finley Councilperson. Jack Kelly Councilperscn Peter Green Councilperson Donald A. MacAllister Cuuncilperstin John A. Thomas Councilperson OTHER ELECTED OFFICIALS Warren G. Hall City Treasurer Gail Hutton City Attorney Alicia M, Wentworth City Clerk ADMINISTRATIVE OFFICIALS Charles W. Thompson City Administrator Robert J. Franz Chief of Admini-Arative Services James Palin Development Services Director Pawl E. Cook Director of Public Works I Melvin Bowman Community Services Director Raymond C. Picard Fire Chief Earle W. Robitaille Police Chief i ( i r i f 1 ( - s s j j —� ---� -• 3 _ 7 __ --A ,�-- PEorLE �r City Of • CITY COUNCIL Huntington Beach Organizational Chart CITY V ADMINISTRATOR /f CITY CITY TREASURER ATTORNEY CITY CLERK IitR*I1W.14A i1PH11 BUSINESS LICEtiiSE 1 x DEVELOPMENT ADMINISTRATIVE COMMUNITY I POLICE FIRE PUBLIC WORKS SERVICES SERVICES SERVICES r HUNIFORM FIRE 1 OIVISIO'Y FPIRIEVENT1014 ENGINEERING � ' PLANNING � PERSONNEL LIBRARV- - I H f ADMIN. REAL RECREATION& OPERATIONS WATER L J BUILDING t RESOt AN S ERVICE- 1 PROPERTY RCES 1 INVESTIGATION LANDSCAPE HOUSINCJ FINANCE BEACFf DIVISION REDEVELOPMENT i SPECIAL ;NFORMATIG OPERATIONS qUAINTENANCE SYSTEMS I INSURANCIE& BENEFITS E F I A 1 1 � i i i f � i rr' 7 r l I I f r (This page left blank intentionally) f r- `1 �l J J I I. ; 1 li tl I� �•1 11 FINANCIAL SECTION j tw I I i I �M M i 1 � i I • I �.1 MEHL. EVANS AND COMPANY J 'rvlN 6.►CtLR3.C.P.A. A PARTMC*50410 INCLUO-NQ ACCOUMTANC•CORPORATIONS CERTIFIED PUBLIC ACCOUNTANTS Or.ICw orrlc.t5 AT. DONALD M.PCTCRSUN C.PA. It 10 NORTH BUSH STACIIJ 8906 RDQSCVLLT STPCCT DONALD L.CAILAMAl1.CMA. PMI .1►CTLR ICMCRER•C.PA SANTA ANA, C;ALIFOFNIA 0870g-28174 CI^LSti1L0, 6191 7 RI1Ul 9t000•>:.IJ9 f 'ROONLV.MCDANILL.C.M, l�lYl 7t0•!]A7 i 1/la) 5a2 4•�53 ISO WCST WDOOWARD AVeNUC RAL/M 11.WCINfRAUO,C.PA, •►MIU►M.MOLTRAMP;C-PA. E5CON0100, CAU/ORNU 9i!025.9990 •THOMAS L' PCRLOW31.1.C.PA. 10191 741•3141 COWARD OROOSRY,C.P.A. OMC CIVIC /',AZA• -UITL j09 CLUE C.DICML.C.P.A.IRLTIREDI NEWPORT EACH,CAU1rOR41A C:0160 OR" IL CVAN4.C.►w.IRCTIRCDI September 24, 1985 17141 6".8156 'A 080TLSS1000A11,CORPORATION I ACCOUNTANTS' REPORT I 0" I .1 City Council City of Huntington Beach Huntington Beach, California �^ We have examined the combined financial statements of the City of Huntington ., ; Beach, as of and for the year ended June 30, 1985, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordinglj, included such tests of the accounting records and such other auditing procedures as We considered necessary. In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Huntington Beach, at June 30, 1985, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied or a basis consistent with that of the preceding year, ^xcept: for the change with which we concur , regarding the recording of Public Facilities Corporation and Parking Authority fixed assets and long--term debt as more fully described in Note 15 to the financial statements. Ou.- examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining and individual fund financial statements are presented for purposes of additional analysi ^ and are not a required part of the combined financial statements of the City of Huntington Beach. The information has been subjected to the audltiug procedures applied in the examination of the combined fir.incinl statements and, in our opinion, is fairly stated in all material respect.; in relation to the combined financial statements taken as a whole. the other data included in the i Statistical Section is presented primarily for supplemental analysis purposes. —4 The scope of our examination did not include the statistical Information and we do not express an opi•,ton or any other form of assurance concerning it. .a l� CITY OF HUNTINGTON BEACH COMBihED BALANCE SHEEP - ALL FUND TYPES AND ACCOUNT GFOUPS June 30, 1985 , _ Governmental Fund_ Types Special Debt Capita ; General Revenue Service Pro ects ` ASSETS Cash and investments (Note 10 i11,667,6118 $13025G,052 $ 110,505 $165,606 Cash with fiscal agent - - 3,657,937 728,915 Taxes receivable 4731441 - 9,441 - Accounts receivable 4609426 873,622 - 19451 Interest receivable 73,280 79038 114,972 5,293 ' Due from other funds (Note 7) 10926,495 4,735,628 - 6,192 Due from other agencies 855,914 479,741 - - Inventory (Note 1d) 148,906 - - - Deposits and other assets 209,937 - - Property, plant and equipment, not (Note le) - - - - Amaunt available in debt service funds - - - - Amount `o be provided for payment of long-term debt - - - TOTAI. ASSETS $15,816,047 $19.418,781 $5.892.855 $907.457 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 10169,666 $ 390t884 $ - $ - Accrued payroll 1,600,646 15,260 - 5,359 Deposits 689,785 65,408 - - ' Due to other funds (Note 7) - 369,136 - 6,192 Deferred compensation (Note 3) - - - Claims payable (Note 6) - - - - :-- Deferred revenue (Note 4) 709,873 3,671 ,145 - Accrued interest payable - - - - •- Certificates of participation (Note 10) - - . Bonds payable (Notes 9 and 10) - - - - ,... Other long-term debt (Notes 9 and 10) - - - - Compensated abacnees payable (Notes If and 9) - - - TOTAL LIABILITIES 4�1 9 970 4,511,833 �- 11,551 FUND EQUITY: Contributed capital - - - - Investment in general fixed assets - - - - Retained earnings: - Reserved (Note 12) - - - - Unreserved (deficits) - - - - " Fund balances: Reserved (Note 12) 6,070,789 20581 ,258 5,892,855 889,322 Unreserved: Designated (Note 12) - 1,150,431 - - Undesignated 5,575,288 11.075,259 6,584 TOTAL FUND EQUITY 11 ,646,077 14,906t948 5,892,855 895.906 TOTAL LIABILITIES AND FUND EQUITY $15.8.16,047 $191418,781 $5,892,855 $907.457 See accountants' r_port and notes to financial statements. I -2 SCHEDULE A-1 i i Account Groups Proprietarl Fund Types Fiduciary General General Totals Internal Fund Type Fixed Long-Term (Memorandum Only Enterprise Service A ency Assets Debt 1985 19811 I 6,231,382 $5,384,402 $5,557r056 $ _ ; = 42,3669651 $ 35071,161 i,459,483 - 7,8469-335 10,8589162 - - - - 482,882 6109980 542,406 39498 - - 1,8860403 i,o66724 5',915 32,49 - - - 3589693 457:249 22,206 - - - .. 69690,523 501110016 - - - - - 1,335,655 1,603,713 148,906 196,567 1 238,377 174,981 - 6230295 1057086 350662,760 221,327 = 66,617,643 - 102,501038 94,6;5,912 - - 5,8926855 5,892,855 739,664 w - - 19,516,496 19,516,496 28,977,968 �'i� 4 2-?a9,539 $5,64�6,722_ $5,7�32,0377 $66,617f843 125.409,351 $189,650,632 $181,287,102 ^" $ 941,559 $ 72,908 ; � -- -$ ; 2,640,799 ; 2088,792 409199 24007 - - 1,686,271 1,604,250 la Wi 781,110 - - -- - 1,4709521 1,521,u37 •� 321000 - - - 50994,195 6,690,523 5,111,016 - - 59703,237 - - 5,703,237 4,371,867 - 5,186,OOo - -- - 5,186,000 40467,000 <.1 . 22,208 - - - - 4,403,226 3,6019974 i 900405 - 90,405 42,631 4 600 000 - - - .- 4p600,000 1} r r ,600,000 10111,000 - - - 1600350000 17,146,000 18,291,000 29171,229 - 28,800 - 421,231 2,6219260 2,550,294 "1 129,705 - - 2,958,925 3,088 630 2,826,507 10 208 41 � _ , 5 5,283`?15 5,732,037 25. 09.351 55:326,872 _ 1,37 ,768 � OWL{ 329935,226 2,000,000• - - 34,935,226 30,805,2011 - - - 66,617,843 - 66,617,843 63,043,290 J 570,449 - - - - 570,449 448,479 495,449 (1;636,993) - - - (1,141,544) 637,606 �! - -- - - - 150434,224 15,927,600 - - • - 11150,431 170,474 j 16,757,131 18,875,681 k 39► 0`07, 12u` 3-`�c300? 17,843 114,321 .7�0 129,910,33 $44,209,539 $5,646,722 $5,732,037 $66,617,843 $25,409,351 $189,650,632 $181,287,102 �3- ( ' � CITY V HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES �- AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the y,.ar ended June 30, 1985 ; General Fund REVENUES: Property taxes S 17,073,983 Other taxes 259923,113 7 Licenses and permits 3,591 ,493 Fines, forfeitures and penalties 2t093t975 From use of money and property 3,899,972 From other agencies 5,953,540 Charges for current services 2,2G2 185 Other 364,156 TOTAL REVENUES 61 ,102.41? EXPENDITURES: City Council 128,635 ^- City Administrator 6330514 City measurer 267,882 City Attorney 8060146 City Clerk 194,834 Admt.nistrative services 29558,796 Devclopment aarvices 1,7590542 Fire 9,4690458 r` Polica 17,114,924 ,.. Housing and community development - Community services 5,169,351 �- Public works 13,625,016 Debt service, principal - Debt service, interest - Non-departmental 49867,215 Capital outlay 3,,098.315 TOTAL EXPENDITURES 59&931628 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,408,789 OTHER FINANCING SOURCES (USES): J Operating transfers in 2,795,907 Advances from General Fund - Proceeds from Certificates of Participation - Operating transfers out (1,423.950) TOTAL. OTHER FINANCING SOURCES (USES) 1,371 ,957 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 2,780,746 FUND BALANCE - BEGINNING OF THE YEAR 10,382,894 Prior period adjustments (Note 15) - Residual equity transfers in (Note 7) 682,437 Residual equity transfers out (Note 7) (2L200,000) FUND BALANCC - END OF YEAR S 11,646,O See accountants' report and notes to finanzial statements. SCHEDULE Awl IAA If Special Debt Capital Totala Revenue Service Projects (Memorandum Only) Funds Funds Funds 1985 19814 If » $ 549,312 $ 150026 $ 170638021 16,935,465 — — — 25,923,113 22,8789559 2,371,918 — 5*9639411 5,099,573 — — — 2,093,975 10923*143 10240,579 624*810 130,046 5,895,407 6,1779364 6,934,804 — — 12,888,344 9,937 025 59,239 — 2,261,424 20009,901 •• - 364 156 1 052,519 1 , 0 , 0 1�17 ,12 1 a5.0 73 02 ,1 i d ,013, F9 •i -• 1280635 111004E 97,452 730,966 . 480,390 — — — 267,882 141.158 806,146 729,691 194,834 163,473 — — — 2,558,796 293620261 1,759,542 10632,865 24,376 — — 9,493,834 8,568,812 7,718 — — 179122,642 15,6o1,080 i 661,965 — 304,419 966,384 685,654 117,597 — 5,286,948 5 .070,115 , w+ 26,494 — — 13,651,510 :2,528,418 — 9600000 — 9609000 860,000 936, iO4 — 936,104 970,1119 498679215 , , 92 4,718,986 — 56,418 7873719 8620833 5 0 5 4, 8 1, 9 ,_104 360,837 67t6O5rl57 62,266,941 4j951r952 ',721,982) _ (2152765) 5.422,994 3,746L908r aaw.� -+r.+rwr� 4 1..1 62.8,309 1,468,575 — 4,892,791 5,428,758 [� 237,336 237,336 — — — 4,287,620 (3,424,216) — (4...4�622.5.) (4,892 791) (5,428,758) 2,795,90 ) 1, 8i575 192E?11 23 y33 4,Z87,620 lJ 2,156,045 746,593 (23,054) 5,660,330 8,034,528 � 1b,011065 5,859,901 6, 180,057 38,434,217 30,805,225 — (3,460,462) — (3,460,462) (405r536) 200,000 — — 882,437 — l� — (713,639) (5,261,097) (8�174,736) — S 1u,9061.948 $ 5.892,855 S 895.906 $ 33,341,786 $ 38,434,217 —5• I U 4 I CITY OF HUHTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 300 1985 General Fund Variance - Favorable Budget Actual (Unfavorable) REVENUES: Proper'.y taxes $ 18,517,546 $ 17,073083 $ (1,443,563) Other taxes 25,266,000 25,923,113 657,113 Licenses and permits 3077000 3,591,493 214,493 Fines, forfeitures and penalties 10966,500 2tO93,975 1279475 From use of money and property 3,690,700 3,899072 209,272 From other agencies 1,660,100 5,95.3,540 4,293,440 Charges for current cervices 2,085,400 2,20,!9185 116,785 Other 553,400 364,156 (1899244) , TOTAL REVENUES 57,116,646 61 ,102,417 3,98 ,771 EXPENDITURES: City Council 127,436 1280635 (10199) City Administrator 6499060 633,514 15,546 City Treasurer 289,165 267,882 21 ,283 City Attorney 885,974 806,146 79,828 City Clerk 220,180 1949834 25,346 Administrative services 2,727,651 2,558,796 168,855 Development services 1,805,885 19759,542 46,343 Fire 91484,864 9,469,458 159406 P01102 179471 ,286 17014,924 356,362 Community services 5r479,462 59169,351 310,111 Public works 14487,685 13,625,016 1,262,669 Debt service, principal - - - Debt service, interest - Houaing and community services - - - Mon-departmental 3,694,251 4,867,215 (1,172,964) Capital outlay 4,82.9.011_ 3,098,315 1,730,696 TOTAL EXPENDITURES 59,ffl,628 2,858 282 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (5_,435,264) -_ , 1,408,,789 61844,053 OTHER FINANCING SOURCES (USES): Operating transfers In 2,598,500 2,795,907 197,407 j Operating transfers out (4,423,250) (1.429.950) - -= TOTAL OTHER FINANCING _. SOURCES (USES) 1,174,550 1,371,957 197,407 EXCESS OF REVENUES AND arHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES ('10260,714) 2,780,746 7,041 ,460 •- FUND BALANCES - BEGINNING OF THE YEAR 10082,894 10,382,894 - Prior period adjustments (Note 15) - - - Residual equity transfers in (Note 7) - 682,437 602,437 Residual equity transfers out (Note 7) - (2, !00,000) _ (2,200i 000) FUND BALANCES - END OF YEAR $ 6,122,180 3 11,646..077 $- 5,52.1,897 See accountants' report and notes to financial statements. A .` -6- V �' SCHEDULE A-3 ; l Special Revenue Funds Debt Service Funds Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget -Actual (Unfavorable.) _ - $ - $ 473,000 $ 549,312 $ 76,311 292800000 2,371 ,918 910918 r - - 600,O60 1t240v579 640,579 22,000 6240810 602,810 6,568,000 6,9349804 366,804 - - -- 285,000 59,239 (225,761) �- - - ` 9,733,000 r10.606�5i10 -y 873,540 495,000 1.,174 9122 679,1-:2 115,636 97,452 180184 - - _ r r r r r 28,701 24,376 4,325 r - w 18,000 7,718 10,282 -r - - 168,959 117,597 51,362 _ _ - 27,600 269494 12106 r .. .. - 9609000 960,000 - - - - 942,842 936,104 6,736 207078 661 ,965 %454,087) - - w w w 14,799,106 718,986 10,08,. - 15 80 5,654,588 �9 _,7•I 1,292 1,902.42 1,E 96�,_104 6,738 M1 , f5✓632r880) 4,951,952 (10,584j832) (1,407,842) (721t982) 605,860 628009 628,309 1,423050 1*468,575 44,625 000) (3,424,216) (695,2i6) - - --- i i (21729,000) (29795,907) (56,907) 1,42 950 �1t46,. 8.575 _44,625 i -� (8,361,880) 2,156,045 10,517,925 16,108 746,593 730,485 16,011,365 16,011,365 - 51859,901 5,859,901 - (3,460,462) (3,460,462) - - .. ` i r 200,000 200,000 - - - "� - - (7132639) (713,639) i $ 7,649,485 $ 14,906,948 $ 7,257,46 $j_,876,009 $ 5,892855 $ 16,846 i J N� -7- M SCHEDULE A-3 CITY OF HUNTINGTON BEACH COMBINED STATENOT OF REVENUES, EXPENDITURES AND .• CF'ANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 30, 1965 Totals Variance - r' Favorable Budget _y Actual (Unfavorable) REVENUES: Property taxes $ 18,990,546 3 17,623,295 $ (1 ,367,251 ) y Other taxes 27457000 28054,991s 797,994 Licenses and permits 5,657,000 5,9639411 306,41i Fines, forfeitures and penalties 1,966,500 2,093,975 1270475 "w From use of money and property 4,312►700 5,765,367 1,452,661 From other agencies 5037,100 10,456,463 49519*363 Charges for current services 2,3709400 1,261,424 (108,976) Other 353,400 364,156 - (189,244) TOTAL REVENUES 67,3.442646 ?2,.883,079 5,538433, EXPENDITURES: City Council 127,436 128,635 (10199) i City Administrator 764,696 730,966 33,730 i City Treasurer 289,165 267,882 210263 ; City Attorney 885,974 806,146 79,828 City Clerk 220,180 194,834 25046 Administrative services 2,727,651 2,5580796 163,855 Development services 1,8240185 1,773,517 500668 Fire 9,513,565 9,493,834 19,731 Police 17,489,286 17,1229642 366,644 Community services 5,64$,421 5,286,948 361 ,1173 _f Public works 14,9159285 13451 ,510 . 1,263,77S Debt service, principal 960,000 960,000 - Debt service, interest 942,842 936,104 6,738 Housing and community services 207,878 661,965 (454,087) Non-departmental 3,A940251 4o 867,215 (1 ,172,964) Capital outlay 19,609,817 7t803,326 11,806,491 TOTAL EXPENDITURES 79,820,632 67,244,320 12,576„i,31_2 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES _ 02,,475,.9g6) 5638,759 18,114,7'15 OTHER FINANCING SOURCES (USES): j Operating transfers in 4,022,450 4,892,791 870,341 Operating transfers out (4,152,950) (44848 J 66) (695,216) TOTAL. OTHER FINANCING SOURCES (USES) (130,500) 444625 175,125 ..-�..+ EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (120606,486) 5,683084 18,289,870 FUND BALANCES - BEGINNING OF THE YEAR 32,254,160 329254*160 - Prior period adjustment (Note 15) (3,460,462) (3,460,462) Residual equity transfers in (Note 7) -- 882,437 882,437 Residual equity transfers out (Note 7) (24913,639) (2� ,913,639) FUND BALANCES - END OF YEAR 6 19,647,674 S 32,445,880 $ 12,798,;:L6 See accountants' report and notes to financial statements. vow i CITY OF HUNTINGTON BEACH SCHEDULE A-4 COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES I For the year ended June 30, 1985 I. I Totals j Internal (Memorandum Only) Enterprise Service 1985 _ 1984 1 OPERATING REVENUES: Chargei for services $ i 3030047 i 3,930,147 $ 2097,964 Water sales 7010,579 - 7,310:579 6,168, 162 Rentals 3779950 - 377#950 188011 Other 197.942 197,942_ 335,321 { TOTAL OPERATING REVENUES 7,886,471 3.930.147 11,816.618 9,089r758 OPERATING EXPENSES: EI Water purchases 1,736,541 - 1,7369541 948,960 E Pumpirg 2 022,513 - 2,3220513 2,089,518 Water treatment 41,216 - 41 ,216 33,834 Tranzmission and distribution 1,3i7037 1.377,037 1,568,539 Administrative and general 1,238,125 1,374,151 2,612,276 1,745,756 Contribution to general fund in lieu of taxes 1,097, 165 - 1,0979165 941 ,641 Workers compensation claims - 1,335039 1,335 139 1,934,670 �1 Employee medical claims -- 1,780,428 1,780,428 19357,464 ' ...� Liability claims - 977,958 977,958 925,539 ` Depreciation (Note 1) 1,230.3,61_ 249012 1,254,373 1.2281_649 ~i TOTAL OPERATING EXPENSES � ,042,958 5.491.688 14.534,646 12,774,540 OPERATING LOSS (1 ,156,487) (1 .561 .541) (2,718,028) (3,684,782) NON.-OPERATING REVENUES (EXr"ENS F-1, Interest Income 653r771 590,601 1,244,372 990,508 Interest expense (183,524) (183,524) (217,540) rJ TOTAL HON-OPERATING ".EVENUCS (EXPENSES) 470,247 �540.601 1,0602848 772,968 NET (LOSS) (686,240) (970,940) (1,657080) (2,911,814) RniAINED EARNINGS (DEFICIT) - .-J BEGINNING OF YEAR 1,752,138 (666,053) 1 ,0861085 3,997,899 RETAINED EARNINGS (DEFICIT) - END Oi YEAR $ 1,065,898 Z(1 L636.993)S (5't+ .095)S 1.086.085 i 1 ' W� ' j See accountants' report and notes to financial statemets. ..,j -9- � � I ti 1 SCHEDULE A-5 CITY OF HUNIINGTON BEACH COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES For the year ended June 30, 1985 Totalr Internal (Memorandum Only) Enterprise Service 1985 1984 SOURCES OF WORKING CAPITAL: — -_ Operations: Met loss i (686,240)$ (970,9110)$(1,657,180)$(2,137,928) Items not requiring working capital: Depreciatan 11230,361 24.012 1,254,373 1,5C4,689 Working capital provided (used) r- by operations 544,121 (9116,928) (402,807) (573,239) Increase in self-insurance claims payable - 719000 719,000 1015,781 Contrib•�tions 2,130,022 29000,000 4,130422 816,327 .- Sale of Certificates of Participation 4,600,000 - 4,6001030 . - TOTAL SOURCES OF WORKING CAPITAL 7,274,143 12772,0?2 USES OF WORKING CAPITAL: Increase in property, plant and equipment 59302,507 245,339 5,547,846 19061,442 Increase in restricted assets 839,129 - 839029 482*670 Decrease in long-term debt 226,570 - 226,570 893,021 Decrease in compensate.l absences ` payable 802 - 802 - TOTAL USES OF WORKING CAPITAL 6g369,008 _ 245,339 6,614,347 _ 2.,437, 133 r NET INCREASE IN WORKING CAPITAL A 9050135 $ 1,526 733 $ 2.1131 ,868 w(1,078; 764) ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL: Cash and investments $ 1,641066 $ 1,486,532 $ 3028,398 $0,366;211 ) Interest receivable 5,957 (5,844) 113 - Accounts receivable 64,698 70496 72,194 131,751 Due from other funds 22,208 (259427) (39219) :335,931 •� Prepaid expenses and other assets 206,108 - 206,108 Accounts payable and accrued payroll (319,438) 63,976 (2559462) (142,227) Interest payable (35,899) - (35,899) 39694 Deferred income (22,208) - (22,2OB) - Due to other funds (320,045) - (320,0461 Due to other agennies (90,082) - (90,082) - Deposits (244,482) - (244,482) (36,756) Current portion of long-term debt (31548)_ (3,548) (4,41:6) NET INCREASE (DECREASE) IN WORKING CAPITAL $ 905,135 $ 1,526,733 A 2,431 ,868 S(1 ,078,264) See accountants' report and notes to financial statements. - 1 CITY 8F !'.gNTIN1+70N BEACH NOTES TO FINANCIAL STATEMENTS June 30, 1985 j 1. Sl1144ARY OF SIGNIFICANT ACCOUYTING POLICIES; a' a. Description of Fund Types and Account Groups: i The City of Huntingtor. Beach (City) accounts for its financial position . and operations in accordance with generally accepted acco► oting principles applicable to governmental units. Accordingly, the. City uses several funds and account groups. A fund or account group is an accounting entity with a self baianning se. of account* established to retort: the financial position and results of operations of a specific governmental activity. The City maint,iins the following fund types and account groups: Governmental Fund Types: The General Fund is used to account for all financial resources except those required to be accounted for in another fund. 1 Special__Revenue Funds are used to account for the proceeds of specific revenue bourses that are legally restricted to expend,tures for specified purposes. Debt Service Funds are used to account for- the accumulation of resources for, and the payment of, general and redevelopment long-term debt principal and interest. Capital ProJects are used to account for financial resources to be used for the acgi+isition or construction of major capital facilities. Proprietary Fund Types: Enterprise Funds are used to account for operations that are financed And operated in �a manner similar to private business enterprises and where the intent of the governing body is that the costs (expenses, Including depreciation ) of providing goods or services to the general "! pu►:lie on a cent;nuing basis be financed or recovered primarily through .� user charges. i Internal Service Funds are used to account fnr the financing of services provided by one department to the other departments of the i City on a cost-reimbursement basis. 1 Fiduciary Fund Type: i i ALenc FFut:+ids are used to account for ausets held by the City as au agent for individuals or private organizations. See accountants' report. 1 I s'' 7 �•,' ` ?�' ,'. ,,r.' � :� ,j7° ,./,�.1' fda'!;, c,!rF• 1:' r %•J�,,.. 1� S' !• •Ids ,i +'¢Y •r '•f..,i_ .n ,1:1 y..Y�L W�.vLa.,l: i:!s.."L::.,i ��Y' •''f !.�w.t.,. y;.,' r, ♦:w CITY OF HUNTINGTOM BEACH NOTES TO FINANCIAL STATEME11TS ' M)ntiriued) June 30, 1985 1. SLMMARY OF SIGNIFICANT ACCOUNTING POLICIE:, (CONTINUED): a. Description of Fund Types and Account Groups (Continued): Account Groups: ►~ The General Fixed Assets Account Group is used to maintain control and cost information on capital assets owned by the City, other than those of the proprietary fund types. The General Loti`—Term Debt Account Group i- used to account for the unmatured long—term liabilities that will be financed from governmental funds. b. Basis of' Accounting: Govertlmental fund types and agency funds use a modifieJ accrual basis of accounting, Revenues are recognized vilen measurable and available. Revenues which are accrued include federal and state grants and subventions, property taxes, interest, and certain charges for current services including unbilled receivables in •.nterprise funds. Revenues which are not considered susceptible to accrual include pertain licenses, permits, fines, forfeitures and penalties. Expenditures, other than principal and interest an long—term debt and employee compensated absences (vacation and sick leave) , are recorded when the liability is incurred. Proprietary Lund types are accounted for on the accrual ba:tis. • F r C Inves fronts•V Investments are stated at cost, which approximates market value. d. Inventories: Inventories, wh{ch consist of materials and supplies.' are stated at ►righted—average cost. e. Property and equipment: Aequisit:.ons of property and equipment are recorded as expenditures in - governmental fund types at the time of purchase. These assets are capitalized at cost in the General Fixed Assets Account Group. Expenditures for infrastructure (roads, curbs, sidewalks, sewers, etc.) normally are not capitalized as such assets are immovable and ,znerally of value only to the City. No depreciation is provided for assets capitalized in the General Fixed Assets Account Group. See accountants' report. _ lf/� —12 Iff,�i, v t y E.: �.t;., .•!y�� fir' 'tirqre „y�,e� '��tii irti'1,1�r�,} tt�, , r( d,f'•.�rrr',.°.�'rn ,.'�j,„�� •;^`!:', ,i'1?. � ., r, i '.;d,�'? ..�'�+1 i. .;' '�a $ �' •,I� �,,r�'•�'X. .. l, , 'rr• ;; '��. '�F1 YF�g; '' t:` •,�!,',,; �'�,. rrl {',: fff i'v•'f•'�'° •, i�9-�, {.�Y r�. •ir t`,r�� fl� .,f��4�./,f,'��'p rf,:;, � 1R.r'=JyrT��',v,.V,`l•''r,r+.i��;�;Yt�.��,r'�i'Vr•�.``.,+iil1�,''t*. '1 1"' i"�„�u"rf"I{' t i. .%�, rr••I :A,`. .�ll'. f+ r . 1 f., f 1,,+. 55 I¢4r •l�? .r...,a u...Y ..1..•r.( Y Yt......�tfi�L_i..«.-a.:..:1.isc.�..�:Lt.:...f.. .._..Y.--a..:1..i...:�L.`1:....:1:....• II _ .� al:.:.r..'. 1 f CITY OF HUNTINGTON BEACH c � NOTES TO FINANCIAL STATEMENTS (Continued) I June 30, 1985 MI 1. SUMMARY OF SIGNIFICA11T ACCUNTING POLICIES (CONTINUED): c• P. Property and equipment (continued). Property and equipment acquired by proprietary fund types are capitalized at cost at time of purchase in the respective fund. Assets acquired ft•om gifts or contributions are recorded at fair market value at the time received or, in the case of water distribution as ie ts, at the City Council acceptance date. Depreciation on such assets is f calculated on the straight-line method over the estimated useful lives shown below and charged to the operations of the respective fund. , j Category Useful Life Production, pumping, tramsmission and distribution plant 10-50 years General plant 20-50 years Transportation equipment 5-30 years 1K f. Employee Compensated Absences: For the governmental fund types, it is the policy of the City to record the cast of vacation and sick leave when paid. At June 30, 1985 the unfunded liability for vacation and sick leave accumulated by the - City's governmental fund employees totalled $2,958,925. The City has recorded this amount in the General Long-Term Debt Account Group under the assumption that such amounts will be paid with future financial resources, In the proprietary funds, the liability of $129,705 has been recorded. •i g. Budgetary Accounting: Annual budgets adopted by the City Council at the beginning of each fiscal year provide for the general operations of the City. This "appropriated budget" (as defined by National Council on Governmental Accounting (NCGA) Interpretation 10) covers substatially all City ' expenditures, except for the Capital Projects Funds as these funds are budgeted on a long-term project basis instead of an annual basis. Revenues for the Special Revenue Funds are budgeted by entitlements and grants; expenditures and transfers are budgeted based upon available fund resources. Budgets for the General, Special Revenue and Debt Service Funds are j adopted on a basis substantially consistent with generally accepted accounting principles. There are no significant non-budgeted IIIj expenditures. Actual expenditures may not exceed budgeted � appropriations at the fund level. , See accountants' report. -13- n t ��r' +i:.33iYEiT.AI.r:scr�a�''�tia�,u'Y��:t:�.•mu�RPlyTe��a�.d3i7�;j�u�sirl ruca�w:.rs..�_s.........--• � n CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (COWUNUED): g. Budgetary Accounting (Continued): The resolution approving the budget authorizes the Chief of Administrative Services to transfer funds frum like objects or purpose within the same department. The City Administrator is authorized to transfer funds from one department to another within the adopted budget. Subsequent to the approval of the Budget document, the Council authorizes the reappropriation of prior year encumbrances to fund approved projects end certain operational expenditures. The Council is authorized to make and has ma0 a appropriation adjustments to the budget during the year as deemed necessary. The adjustments are included in the budget amounts in the accompanying combined financial statements. t• Property Tart Revenue: r, Property tax in California is levied in accordance with Article 13A of the State Constitution at one percent of county-wide assesed valuations. This one ticreent is allocated pursuant to state law to the appropriate units of local envernment. Property tax revenue is recognized in the fiscal year for which taxes have been levied, provided that the revenue is collected in the current ^- period or will be collected within 60 days thereafter. The property tax calendar is as follows: r Lien Date: March 1 Levy Date: July 1 Due Date: First Installment — November 10 Second Installment — February 10 ._ Delit,quent Date ; First Installment — December 11 Second Installment — April 11 Taxes are collected by Orange County, and are remitted to the City periodically. - (Dates and percentages may var7 sligh:.ly from year to year.) November 30 5% December 19 20% December 28 20% February 1 Balance of First Installment March 28 5% April 26 34% July 26 Balance of $eeond Installment See accountants' report. -- —14— • t CITY OF HUNTINGTON PEACH wa NOTES TO FINANCIAL. STATEMENTS (Continued) , June 30, 1985 I i 1. SUMMARY OF SIGNIF1CAN7 ACCOUNTING POLICIES (CONTINUED): h. Property Tax Revenue (Continued): .� Tax Increment: ' Under provisions of the California Health acid Safety Code and the Redevelopment Plan, taxes levied by any taxing agency on all taxable ; .. property in the redevelopment project area ore divided between the es.n g g y p Redeveloment Agency and the various taxing aeci � i An amount equal to the current Lax rates applied to the assessed valuation (within the project area) prior to the adoption of the Redevelopment Plan is paid into the funds of the respective taxing agencies. The increment of taxes received over and above that amount ~j are remitted 80% to the Debt Service Fund of the Redevelopment Agency ' and 20A to the Lcw Income Housing Fund. i I. Capitalized Interest: Interest expense incurred, net of interest earned on unused proceeds from Certificates of Participations totalling $185,000 has been capitalized as part of the cost of construction in the Emerald Cove Housing Fund (an Enterprise Fund) . i 3. Total Columns on Combined Financial Statements: The combined financial statements inlude total columns which aggregate the financial statements of the various fund types and account groups. The columns are designated "memorandum only" because the totals are not comparable to a consolidation in that interfund transactions are not -� eliminated. k. ' Measurement Focus: All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that generally only current assets Fund current liabilities arF Included on their balance sheets, with the ''; exception that: the noncurrent portion of long-term receivables due to governmental funds are reported an their balance sheets, offset by fund balance reserve accounts. Statements of revenue, expenditures and changes in fund balances for governmental funds generally p.•esent increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets„ See accountants' report. CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1935 i I 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): r k. Measurement Ficus (Continued): All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with the activity are included on the balance sheets. Their reported fund equity presents total net assets. Proprietary fund operating statements present increases (revenues) and decreases (expenses) in total net assets. 2. DESCRIPTION OF THE REPORTING ENTITY: This comprehensive annual financial report incorporates NCGA Statement 3. One of the criteria for inclusion of ar entity in the report is oversight responsibility. The following separate legal entities under the oversight responsibility of the City are included with the City as components in this report: Parking Authority of the City of Huntington Beach, Huntington Beach Public Facilities Corporaton, Redevelopment Agency of the City of Huntington Beach, and the West Orange County Water Board. All components of the reporting entity report on a July 1 through June 30 fiscal year. 3. DEFERRED COMPENSATION: Full-time City employees have the option of deferring a portion of their earnings, he deferred amounts are primarily invested in savings accunts and certificates of deposit. The City stains title to the funds until withdrawal by the employee, which may take place at the employee' s termination or any later date. The amount of deferred compensation payable at June 30, 1985 was $5,703,237, 4. DEFERRED REVENUE: Certain revenues in the governmental and ei►terprise funds due from the redevelopment agency have been deferred until received from the agency. These amounts are as follows: General Fund: Sales price of the Huntington Breakers apartment site y 405,400 Interest on amount due on sale of Huntington Breakers site accruing at 10% per annum 81 ,216 Development fees 222,257 `- Total General Fund 709,673 See accountants' report. -16- C 17Y OF 110TItIGTO11 BEACH NO.__ TO FINANCIAL STATEM BITS (Continued) vs June 30, 1985 11. DEFERRED REVENUE (CONTINUED): , j Special Revenue Funds: Park Acquisition and Development Fund: Sales price of the Emerald Cove and adjacent site ; 2,750,000 ' Interest on amount due on sale of Emerald Cove and adjacent site 550,000 Development fees 247,664 Total Park Acquisition and Development Fund 3,5472664 -• Sewer Fund: 1 Development fees 51 ,083 ' Planned Local Drainage Fund: 17 Development fees _ 72.398 Total Special Revenue Funds L671 L145 Enterprise Fund: III Development Fees 22,208 Total Deferred Revenue ; 4j403'L226 i 5. RETIREKNT PLAN: ` I The City is a participant in the Public Employees Retirement System (PERS) j of the State of California covering all the Cityvs permanent employees. Contributions to the system are based on rates set by PERS based on certain actuarial assumptions, such as length of employment, estimated salary rate,, mortality rates, projected retirement benefits and other factors. -� Pensiou costs are recorded as expenditures when paid by monthy contributions to PERS. The total pension expense for the year ended June 7. 30, 1985 was ;6,870,908, of which approximately $1 ,622,900 was for prior service costs. Actuarial information related to the plan was not available from PERS for June 30, 1985. However, at June 30, 1984, the plan net assets available for benefits totaled ;66,237,806, and the present value of the City's unfunded obligation for prior service costs totaled $22,614,924, which amount will be funded through the year 2000 from established contribution rates. The acturial present value of vested and non-vested accumulated plan benefits is not determined under the PERS system of .- accounting, 6. SELF INSURANCE PLANS: The City self-insures for health, workers' compensation and general liability claims. See accountants' report. -17- CITY Cr HUNTINGTON BEACH 11OT" M FINANCIAL STATEMENTS (Continued) June 30, 1985 6. SELF INSURANCE PLANS (CONTINUED). The City is self—insured for the first $75,000 of each health claim , $150,000 of each workers' compensation claim and for the first $100,000 of each general liability claim. Claims in excesu of self—insurance limits are covered by insurance up to $1 ,000,000 for health, $30,000,000 for liability and the statutory limit: for workers' compar.ation. It is the City's policy to charge to expense amounts cf claiM3 ..h. ch are reasonably determinable and where the existence of the City's liability is probable. Charges are made by the Self—Insurance Fund to other City funds based upon estimated insurance policy costs, self—insurance losses and other operating expenses. Transfers from the General Fund are periodically made to cover deficits caused from inadequate charges to the otter funds. 7. INTERFUND TRANSACTIONS: a. Individual interfund receivables and payables were as follows at June 30, 1985: Due from Due to Other Funds Other Funds General Fund $ 1,9260495 $ — Special Revenue Funds: Sewer 51 ,083 — l Planned Local Drainage 729398 — Federal Revenue Sharing — 3690136 Other Grants 1,0640483 •- ,_. Park Aquisition and Development 3,547,664 Capital Projects Funds: Low Income Housing 6,192 Redevelopment Agency 6,192 Enterprise Fund: Water 229208 Emerald Cove Housing 321 ,000 Long—teas Debt Account Group (Sea Note 9) 5t 994,195 i 6,690j 523 $ 6 690,523 b. Residual Ecuity Transfers—. In the prior year Certificates of Participation (See Note 10) were issued in the amount of $4 ,600,000 which was classified as General Long—term debt. The proceeds were retained in a Debt Service Fund and -- a Capital Projecto Fund. During the year the Emerald Cove Senior Citizens Housing Project began operations as a City enterprise activity and the following related assets and liabilities were transferred to that fund: See accountants' report. —18— , CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 am i 7. INTERFUND TRANSACTIONS (CONTINUED): Transferred From Debt Capital Service Projects Long-term Capitalized end Fund Debt Costs Total I Cash 713,639 i 3,783,570 $ - $ 4,497,209 �+ Interest + receivable - 12,27:. - - 12,278 P~epaid expenses - - - 126,500 126,500 ,., 4ote receivable - 823,000 - - 823,000 Construction in Pro:eas - - - 314,201 314,201 Accounts payable - (40,188) - - (40,188) Due to other i funds - - (310000) - (310,000) Certificates of w participation payable (4,600,000) - (4600,a00) S 713,639 S 4►578,660 $(4,910,000)$ 1140,701 $ 823.000 Capitalized costs represent amount previously expended in the Redevelopment Agency Fund. The net assets transferred, as shown above, were recorded as contributed capital in the Emerald hove Housing Fund and as residual equity transfers in the debt service and Capital Projects Funds: Other residual equity transfers were made as follows: Transferred to Flood Equipment Transferred From General Control Replacement Special Capital Outlay (discontinued) $ 682,1139 $ - $ - --� General Fund - 200,000 2,000,000 ..r See accountants' report. -,. -19- L CITY OF 11UNTINGTON BEACH NOTES TO rINANCIAL STATCMENTS ` (Continued) June 30, 1985 �- 8. SEGMENT INFORMATIOA FOR ENTERPRISE FUNDS: The City has three enterprise funds which are run on the same basis as ' commercial enterprises -- Water Utility, Meadowlark Golf Course and Emerald j Cove Housing. Certain key financial data for the year ended June 3A, 1985 for those funds was as follows: I Emerald r Water Meadowlark Cove Utility Golf Course Housing Total Operating revenues $ 7`508,521 # 209,425 # 168.525 # 7,8862471 Depreciation expense # 1,1n9,419 $ 40,942 # # 1;230,361 j Opirating income (loss) $ (12368,003)# 168.483 # 113,033 # (1,156.487) Net income (loss) # (882L781)3 75,526 $ 120,715 # (686t240) Capital contributions received # 8,922 # # 2,121.100 # 2,130,022 Acquisition of fixed j Assets, net $ 236,399 # — # 5,320,507 S 5.556.906 .._ Net working capital i 258,207 $ 272i255 # 887,121 # 4,418,283 1 — Total assets #33,350,019 # 3.6091804 # 7.134,553 $ 44,094r376 ` Long-term obligations, net of current portion $ 1,273,312 1 11731,261 $ 4.484,837 # - 7.539=410 Total equity # 29.996,536 #1,762,773 # 2.241 .815 $ 34,001 ,124 i See acc it,ants' report. ._ -20- CITY OF HUNTINGfn-4 BEACH NOTES TO FINANCIAL STATEMENTS (Continued) i June 30, 1985 9. GENERAL LONG--TEhM DEBT: The following is a summary of changes in general long-term debt for the year cnded June 30, 1985: I Balance Balance Outstanding Outstanding June 30, Leatisfers/ June 30, 1984 Additions Retirenents 1985 ,-, 1970 Park Bonds $ 3,695,000 $ $ 270,O00 y 33;425,000 Public Facilities Corporation Lease- / hold Mortgage Bonds 12,000,000 - 560,000 11,440,000 V Parking Authority + Revenue Bonds 1025,000 - 155,000 1,17010001r California Coastal •� Cunservan:y Note w ,,pp Payable 208,900 - 208,900 Compensated absences 2,696,000 262,925 -- 2,954,925 Yam" -� Certificates of / participation 4,600,000 - 4,600*000 - ✓ Equipment teases 3160043 - 103,712 212,331 Due to Other Funds 5,0859589 19218960C 310,000 5.994,195 Totals $ 29,717,632 $ 1,690.431 $ 5,998.712 $ 25.409,351 a. 1970 Park Bonds: On March 1, 1970 $6,000,000 of general obligation bonds were sold to acquire and construct park facilities. Principal matures annually on March 1 and bears interest at 6$ per annum, due semi-annually. The annual debt service requirements to ataortize the bonds outstanding at June 30, 1985 was as follows: Year ._, Ending June 30, Principal Interest Total 1986 $ 260,000 $ 205,500 $ 4659500 198- 280,000 189,900 469,900 1988 295,000 173,100 468,100 1989 310,000 155,400 4650400 1990 305,000 136,800 4410800 i991 350,000 118,500 468*500 1992 370,000 97,500 467,500 1993 395,000 75,300 470t3OO 1994 415,000 51,600 466,600 1995 445.000 26,700 471,700 J $ 3,425,100 $ 11230,300 $ 4,655.300 1 See nucountants' report. -21- • CITY OF }!UNTINGTON ©EACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1S85 I 9. GENERAL LONGTERM DEBT (CONTINUED): ^ b. Public Facilities Corporation Leaseh-)ld Mortgage Bonds: On January 15, 1972 $11,100,000 of Leasehold Mortgage Fonds were issued to construct the Civic Cen:er Complex . The bonds are secured by a lease between the City and the Corporation whereby the General Fund annually pays $854,900 to the Corporation. Principal matures annually on January 15 and bears interest ranging from 5% to 5.5% per annum, payable semi-annually. The principal balance outstanding at June 30, 19B5 is 1,<7,840,000. On September 1, 1972 $5,000,000 of leasehold Mortgage goads; were issued to construct the Central Library Complex. The bonds are secured by a lease between the City and the Corporation whereby the General Fund •- annually pays $399,000 to the Corporation. Principal matures annually on September 1 and bears interest ranging from 5% to 5.9% per annum, payable semi-annually. The principal. balance outstanding at June -30, 1985 is $3,600,000. The annual debt service requirements to amortize the bonds outstanding at, June 30, 1585 was as follows: j Year Ending Civic Center Bonds Library Bonds •- June 0 Principal Interest Principal Interest Total 1986 $ 400,000 $ 423,225 $ 190,'a00 $ 192,717 $ 1,205,942 1987 430,0oo 4010225 2000000 182,087 1,2131,312 1938 450,000 377,575 210,000 1709812 1,208087 -- 1989 465,000 352,825 230000 158,712 102060537 1990 5309000 327r250 240,000 145,667 10242,917 1991 555000 2989100 260,000 1310667 1,244,767 1992 600,000 267,575 270,000 1169827 1,254,402 1993 6400000 234475 290,000 101,002 1,265,577 1994 675,000 199,375 305,000 83,968 1,263,343 1995 725,00t1 162,250 3200000 66,000 1,273,250 1996 775,000 122,375 340,000 47025 10284,400 1997 830.000 79,750 360,000 280250 1,298,000 1998 765,000 38,250 385,000 9,625 1.197,875 - $ 7,840,000 $ 3,284,350 $ 3,600,000 $ 1 ,434,359 $ 16,158,709 See accountants' report. -22- - CITY OF HUNTINGTOU BEACH w NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 q. GENERAL LONG—TERM DEBT (CONTINUED). j c. Parking Authority Revenue Bonds: .� On September 1 , 1968 $2,300,000 of revenue bonds wcre issued to construct off street beach parking improvements. The bond indenture requires that annual debt service be budgeted by the General Fund. Principal matures annually on September 1 and bears interest at 5.25% per annum, payable semi—annually. The annual debt—service requirement. to amortize the bonds outstanding R, at June 30, 1965 was as follows: - Year Ending June 30, Principal Interest TOW 1986 $ 110,000 $ 580400 $ 166,400 1987 115,000 52,631 167,631 1988 1200000 46,463 166,643 1939 125,000 40,031 165031 1990 135,600 33,206 1680026 1991 1409000 25,988 165,988 •.) 1992 150,000 17,649 AL849 1993 160,000 10,238 170,238 1994 115,000 _ 019 118,019 i $ 1,170,000 287,825 114.57,825 d. California Coastal Conservancy Mote Payable: During the year certain repairs were made to a pier which was damaged by a storm. Ue California Coastal Conservancy agreed to lend the City a portion of the repair costs at an interest rate of 8% per annum. At June 30, 1985 the total amount loaned by the conservancy was $208,900. Annual payments of no less than $22,375 are to be made beginning June 1, 1986 to amortize the loan through June 1, 1995. U e. Compensated Abs% . _eR Payable: There is no fixed payment schedule to pay the governmental fund types outstanding linbility for con.aensated absences earned at June 30, 1985 of $2,958,925. f. Equipment Leases: ' The City leases certain equipment under capital leases with terms ranging through five years. Such equipment (cost of approximately $500,000) is included in the General Fixed Assets Account Group. See accountants' report. �� -23- CITY OF HUNTINGTON BEACH NOTES TO F111-11CIAL STATEMENTS ^� (Continued) :une 30, 1985 9. GENERM LONG-TERM DEBT (C011TIN1'c'n): f. Equipment Leases (Continued): The future minimum lease payments required was as follows: �. Year ending June 30, 1986 i 79,398 1987 63,623 1988 63,623 1989 38,508 I 245,152 Le:s amount representing ; interest (32,821) Total future minimum lease payments $ 212.331 ' g. Due to Other Funds: The Redevelopment Agency has entered into various transactions with other funds. Since payment by the Agency wall be made from tax in,:rement revenues in future years, the debt is classified as long- term, , The various transactions are described below: Sale of land by the Park Acquisition and Development Fund for $2,750,000 plus interest at IOf per annum $ MOO,= Sale of land by the General Fund for $405,40Q plus interest at 10% per ; annum 0..6,616 Cash advances from the General Fund 5260486 Cash advances from the Other Grants Fund 1,0640483 Developers fees payable to various funds to be subsidized by the Agency 616,610 Total Amount Due to Other Funds $ 5,994,195 See accountants' report. CITY OF HUNTINGTON BEACH If NOTES T) FINANCIat STATEMENTS � (Continued) i June 30, 1935 10. ENTEP.PRISE IANG-TERN DEBT: The following is a summary of changes in Enterprise Funds ling-term debt for the year ended June 30, 1985: Balance Balance Outstanding Outstanding June 30, Transfers June 30, 1984 In Retirements 1985 1963 Water Revenue I Bonds $ 1,271 ,000 $ .- 160,000 $ 1,111,00D -� San Joaquin Reservoir i Note Payable 407,226 .. 40,914 366,312 I Meadowlark Golf - Course Note Payablc 1,82;,025 22,108 1,804,917 -' Emerald Cove Housing + Certificates of Pdrticipation _4,600,000 4,600,000 $ 3,5052251 $ 4,600t000 $ 223,022 $ 7,882,229 a. 1963 Water Revenue: Bonds: wl On November 1 , 1963 the City sold $3,750,000 of revenue bonds to construct Water Utility improvements. The bondu are secured by revenues of the Water Fund. Principal matures annually on November 1 and bears interest at 3.5% per annum, payable semi-annually. The annual debt zervice requirements to amortize the bonds outstanding at June 309 1983 was as follows: Year Ending June _10,_ Principal Interest Total 1986 $ 160,000 $ 36,086 $ 196,086 I 1987 170,000 300321 200,321 '4 1988 180000 24,186 2040186 F, 1989 180,000 17,886 197,886 i 1990 190,000 11 ,411 201 ,411 1991 200,000 40;;aS 264,586 1992 31,000 543 31 ,543 .i $ 1,111,000 $ 125,019 $ 1/2361019 See accountant's report. -25- � �D CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Cont1 nued) r� June 30, 1985 ' 10. ENTERPRISE LQNG-TERM DEBT (CONTINUED): a. 1963 Hater Rev.venue Bonds (Continued): The bond indenture requires that Water Fund revenues equal or exceed ' 1.25 times the annual debt service requirement (principal and interest). Net revenues are defined as gross raver-sues less maintenance , and operation revenues, excluding depreciation. The City has complied with this requirement for the year ended June 30, 1985, as shoum below: Gross revenues w 8,049,892 Operating expenses, excluding depreciation 7,687,105 Net revenues $ 362,787 Debt service requirement t 202,718 .� Hatte or net revenues to debt service requirement 1.79 b. San Joaqu.ir. eservoir Note Payable: In 1979 the City and several other local cities and water districts Purchased the San Joequin Reservoir. The City is paying a portion (13.56%) of the debt service for the 1961 construction of the reservoir - plus operating and improvement costs. In the event of default, the expenses and/or debt service payments shall be reallocated among the remaining m)ndefaulting owners in proportion to the percentage interest owned as though the party Aln default did not exist. The City has recorded its portion of the reservoir as a fixed asset in the Hater Utility Fund. Year Ending June 30, 198E $ 57,714 1987 58,018 1988 60,228 1989 60,284 1990 60,464 1991 61 ,028 1992 54,984 412,720 Less amount representing Interest (46,408) Prin--ipal outstanding at June 30, 1985 $ 366,212 See accountants' report. (�� -26- I t CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 10. ENTERPRISE: LONG-TERM• DEBT (CCNTINUED): c. Headowlark Golf Course Ncte i'ayable: I The City financed its parchasa of Meadowlark Golf Course through a long- term 71,t note. The note payable is collateralized by future revenues and do.:s ntt represent a general obligation of the City. The City has ! leased the golf course operation to an outside party at a minimum lease ' income of $150,000 annually through 2007 and a percentage of inccme based upon grrss revenues for the years 2008-2009. As part of the Initial ;ayment of $928,000, the County of Orange contributed $600,000 upon the City' s guarantee to use general City funds, when and if necessary, to ensure that Meadowlark Golf Course will be maintained as K- open space. i The future required payments on the note are as follows: I Year 1 i Ending i June 30, 1986 $ 150,000 1987 150,000 I 1988 150100U 1989 1500000 1990 1500000 1991 and after 3,165,703 3,915,703 Less amount representing interest (2,110,786) Principal outstanding at June 30, 1985 $ 1 ,804,917 d. Emerald Cove Housing Certificates of Participation: In 1984 the Redevelopment Agency sold Certificates of Participation to finance the construction of a senior citizens housing project. The certificates bear interest nt 9.50 per annum, which is payable semi- annually, totalling $437,000 per year. Principal is payable at maturity on Clay 1, 1994. The land upon which the prc.ject is being built waa sold to the Redeveloncn.znt Agency by the City. The City is leasing back the project and is operating it as an enterprise. Certificate proceeds of $437,000 were withheld to pay the first year's interest. Thereafter, beginning June 1, 1985 lease payments, equal to interest, of $36,417 are payable monthly. The holders of the certificates have a proportionate interest in the lease payments to be made by the City. The certificates are w secured by the land and the buildings eunstructed , an assignment of rents, and an irrevocable letter of credit issued by a bank. A discount of $126,500 on the sale of the certificates is being amortized through maturity. See accountants' report. • v -27- i I ..n CITY OF HUNTINGTON BEACH NOTES TO FI'IANCIAL STATEMENTS ;Continued) June 30, 1985 11. CHANGES IN GENERAL FIXEL, ASSETS: I r f Balance Balance June 30, 1984 Additions Dispositions June 30, 1985 Land 3 23051,207 $ 1,920,083 $ - $ 25,871 ,290 Buildings 23,2247,245 273,499 70,129 23,450,615 ' Machinery end .equipment 3,776,797 848,948 295,984 9,329,761 Improvements other than buildings 6,634, 1., 250,410 38,028 6,846,597 Construction in progress 4352826 907,744 223,990 1019,580 S 63,045,290 y 4,2D0,684 $ 62B 131 $ 66,617,843 12. RESERVES AND DESIGNATIONS OF FUND EQUITY: Under the provisionn of NCGA Statement 1, a city may set up "reserves" of fund equity to segregate fund balances which are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use. Fund "designations" also may be established to indicate tentative plans for financial resource utilization in a future period. Each of the City's reserves and designations are described below: r- Special Debt Capital General_ Revenue Service Projects Enterprise r Reserves: Encumbrances $2,275,715 $1,516,775 $ _ Inventory 148,906 - -- - - Long-term receivables 1,372,206 1,064,483 - - - Continuing projects - - - 889,322 ' -- Debt service - - 5,892,855 - 1 ,065,898 City council projects 25,000 - - .- - Other fund deficits 2,248,962 - - - - Designated: Subsequent year's expenditures 1,150,431 - Totals $6,070,789 $3,731 ,689 $5,892,855 $889,322 $1 ,065,898 See accountants' report. -28- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 12. RESERVFG AND DESIGNATIONS Or. FUND EQUITY (CONTINUED): a. Reserves for encumbrances are the accounts committed for materials and services on purchase orders and contracts which are unperformed. b. The General Fund supplies inventory of $1480906 is not available to pay for current expenditures. Therefore, a reserve for that amount has been established. 1 i I c. Reserve, for long—term receivables represent amountz bhich may not be repaid until future years. jd. The reserve for continuing projects was established to provide for long— term appropriations on projects not yet completed. Ie. The reserve for debt service is the amount acwrmulated in Debt Service Funds or the amount set aside in anether fund in accordance with a bond Indenture or similar covenant. f. The City Council has reserved $25,000 in the General Fund for certain spacial projects. g. A reserve has been established in the general fund to cover deficit fund equities in the Redevelopment Agency Fund (a Capital Projects Fund) of $10,100 and the Self—Insurance Fund (an Internal Service Fund) of $29238,862. h. The designations for subsequent years' expenditures are made to providj •`' for deficits budgeted for the subsequent year. 13. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES: j a. At June 30, 1985 the Redevelopment Agency Capital Project Fund has a deficit fund balance: of $10,100. This deficit will be funded through advances from the General Fund. At June 309 1985 the Self—Insurance Internal Service Fund has a retained evrnings deficit of $2,238,862, this deficit will be funded in future years through increased charges to other funds and/or contributions from the General Fund. b. The HUD Sub-tidy Fund (A Special Revenue Fund) had expenditures for the year ended Ju, c 30, 1935 of $26,876. No appropriations were made for this fund. See accountants' report. �(jl —29 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1985 -- ID. CGMMITIIENTS AND CONTINGEIICIES: a. mere are certain legal actions pending against the City which have arisen in the norimal course of operations. In the opinion of management and the City Attorney, the ultimate resolution of such actions is not expected to have a significant impact, ix any, on the financial statements or operation-s of the City. b. The City established a program in February 1963 to provide funds for the purchase of home mortgages secured by newly constructed and existing single—family homes within the City. Under this program, a total of $40,000,000 of mortgage revenue bonds has been issued , $20,000,000 in March, 1983 and $20,000,000 in July, 1934 . The bonds are payable .solely from, and are secured by, a pledge of payments made on the home mortgages and all fund,; held by the trustee under the Indenture agreements. The bonds are not an indebtedness of the City and there exists no legal obligation on the part of the City to make pa)7aents on the bonds fru.w any source other than the revenue and assets plt-dged therefor. Accordingly, thij program has been excluded from the accompanyin{; combined financial statements. 15, PRIOR PERIOD ADJUSTMENTS: a. During the year ended June 30, 1983 the General Fund scld land to the Redevelopment Agency for $405,400 The full amount of the sales price " was evidenced by a note bcurin„ intere�.: at 10% per annum. 'through June 30, 1984 the sales price plus accrued interest of $40,616 was recorded as revenue. Since the funds not available to the General Fund, the amounts should have been recorded as deferred revenue. The General Fund fund balance as of June 30, 1984 has been restated to - reflect this change. b. During the year ended June 30, 1983 the Part: Acquisition and Development Fund ( a Special Revenue Fund) sold ;land to the Redevelopment Agency for $2,750,000. The full amount of the sales - price was evidenced by a note. bearing interest at 10% per annura. Through June 30, 1984 the sales price plus accrued inte •eat of $275,000 war recorded as revenue. Since the funds were not available to the Park Acquisition and Development Fund, the amounts should have been recorded as deferred revenue . The Park Acquisition and Development Fund fund balance as of June 30, 1984 has bean reatat_d to reflect this change. See accountants' report. .. `Z7' —30— if CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS f (Continued) I June 30, 1985 15. PRIOR PERIOD ADJUSTMENTS (CONTINUED): c. Rehabilitation loans are made frou, grant funds received by the HUD Subsidy Fund (a Special Revenue Fund) . These loans should have been expensed in the Grait Fund when made; however, the balance of loans cuLstanding at ,rune 30, 1984 of $!!35,462 was capitalized . An adjustment has been made as of June 30, 19a4 to reduce the loans i receivable wacount and the fund balance of the Qrant Fund by $435,462. i d. At June 30, 1984 the Huntington Beach Public Facilities Corporation and Parking Authority were reported as internpl Service Funds. tinder that presf-station the fixed assets net of depreciation, and the related j bonds and i:.terest payable were reported. In the current year, the Assets are reported in the General Fixed Asset Account Group and the � bonds payable are reported in the General Long-term Debt Accow:t Group, I The activities of the Corporation and Authority are now being reported In debt service and capital projects funds. The cumulative effect on Fund Equity, General Fixed Assets and General Long-Term Debt as of June 30, 1984 due to the change in ancounting is as follows: .„ Public Facilities Parking Corporation Authority Total _ Fund equity as originally reported as Internal Service Funds $ ?,864,930 $ 931,357 $ 4,796,287 ^ Restated as Debt Service Funds (4,091,913) (1,026,324) (5,120,237) Restated as Capital i Project funds (697,033) (185,247)__(882,280) Cumulative effect of the Change in Accounting (926.016)$ (280r214)#(1 ,2U6 230) i I f.. See accountants' report. -31^ 1 i I • r CITY OF HUNTINGTON BEACH NOTES 70 FINANCIAL STATEMENTS (Continued) June 30, 1085 •— 15. PRIOR PERIOD ADJUSTMENTS (CONTINUED): r, i d. (Continued): Restatement for Balance _• Change in Accounting June 30, 1984 Public Balance rs originally Facilities Parking June 30, 1984 ... Reported Corporation Authority as Restated General Fixed Asr.Pts; Land $ 22,910,70 4 669,442 $ 371 ,065 $ 23,951 ,207 Buildings 10,003930 13,243,862 — 2;,247,24� Mechinery and equipment 8,774►735 — 2,062 8,776*797 ` Improvements other than i buildings 40904,007 - 1,730,208 6,634,215 Construction in progress 435,826 435,826 Total r. 47,028,651 $ 13,913,304 $ 21103,335 63,045,29n General Long-Term Debt: Bonds payable 3,695,000 $ 12,000,000 $ 1,325,OUO $ 17,020,000 Other long- term debt 12,697,632 .- 12,697,632 r Total 1 16,392,632 $ 12,000,000 $ 1,325,000 $ 29,717,632 i See accountants' report. I ; —32_ r. I i A 1 i S FINANCIAL STATEMENTS OF INDIVIDUAL FdNDi AHD ACCOUNT GROUPS i i i r ...j Ey 1 � v i r 1 GENERAL FUND f The General Fund is used to account for all revenues and expenditures of the , City which are not required to be accounted for in other special purpose funds. f I ji i ry I J tr i SCHEDULE E3-1 CITY OF HUNTINGTON BEACH GENERAL FUND j 1 I COMPARATIVE BALANCE SHEET 1 June 30, 1985 and 1981E 1985 1984 ASSETS j Cash and investments $ 11,667,648 $ 11*734,151 Taxes receivable 4730441 599.490 Accrued interest receivable 73,280 100,453 Accounts receivable 460,426 276,3h5 Due from other agencies 855,914 653 055 Due from other funds 10926,495 996,106 Inventory ' 148,906 1960567 it Deposits 209,937 27,184 TOTAL ASSETS $ 15,816,047 $ 14,5832754 ' LIABILITIES AND FUND BALANCE "i LIABILITIES: , ., Accounts payable $ 10169,666 $ 19011,766 Accrued payroll 1,600,646 1,513,464 .W, Deposits 689,785 1,074,209 Deferred revenue 709,873 576,974 Due to other funds _ 24,447 TOTAL LIABILITIES _4,169s 970 4,200,860 FUND BALANCE% w. Reserved for inventory 148,906 196,567 Reserved for encumbrances 20275,715 1,693,715 Reserved for long—term receivables 1,3729206 1,5650825 R ..;,%rved for other fund deficits 202480962 — Reserved for City Counr.il projects 25,000 25,000 Unreserved 5,575s288 6p901t787 "i TOTAL 4'UND BALANCE 11,646,077 10t382,894 TOTAL LIABILITIES AND FUND BALANCE $ 15,816,047 $ 14,583,7 4, f' r� t i i L ' L� -33- ,w SCHEDULE B-2 CITY OF HUNTINGTON BEACH GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN I FUND BALANCE - BUDGET AND ACTUAL •� For the year ended June 30, 1985 t fWith comparative totals for the year ended June 30, 1984 �• j 1985 � Varisnce - Favorable 1984 r. Budget Actual (Unfavorable) Actual REVENUES: Property taxes t18,517,546 $17,073,963 3(10443,563) $16,447,299 Other taxes 25,266,000 25,923,113 657013 22,878,559 Licenses and permits 3,377,000 3,591,493 214,493 3,384,322 Fines, forfeitures, and penalties 1,966,500 2,093,975 127,475 11923, 143 From use of m;ney and property 3,690,700 3,899,972 209,272 3,734,107 From other agencies 1,660,100 5,953,540 4,293,440 1,871,988 Charges for current services 2,085,400 2,202, 185 116,785 10924,693 Other 553,400 364.156 (189,244) 1,052,519 TOTAL REVENUES �570116,646 61.102:417 3,985 771 53,216 830 EXPENDITURES: City Council 127,436 128,635 (1099) 111,048 City Administrator 649,060 633,514 15,546 480,390 ; City Treasurer 289,165 267,882 21,283 141,158 City Attorney 885,974 806,146 79,8?8 729,693 r, City Cler't 220,180 194,834 25,346 1631473 ' Administrative services 2,7270651 2,558,796 168,855 2,3620261 Development services 1,805,885 1,7599542 46043 1,6320865 Fire 9,484,864 9,469,458 15,406 8,568,812 Police 179471 ,286 17,114,924 356,362 159601,080 Community services 5,479,462 5, 1699351 310011 4,955085 Public works 14,8879685 139625,016 1,262,669 12,528,418 Non-departmental 3,694,251 40867,215 (1,172,964) 3,740,992 Capital outlay 49829,011 3x098t315 1,730,696 2,161,a58 TOTAL EXPENDITURES 62,55129 10 59169.3,628 _ 2,858,282 53,177,133 .- ! EXCESS OF REVENUES OVER '(UNDER) EXPENDITURES (5,,435,264) 1,408,789 6,844,051 39,697 OTHER FINANCING SOURCES (USES); I Operating transfers in 20598,500 2,795,907 197,407 2,800,375 Operating transfers out _0t423,950) (1,423,950) - (11540,094) TOTAL OTHER FINANCING SOURCES (USES) 12174,550 ,371 ,957 197,047 1,260,281 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) ( � EXPENDITURES Atli) OTHER USES (4,260,714) 2,780,746 7,041,460 1,299,978 _ FUND BALANCE BEGINNING OF THE YEAR 10,382,894 10,382,894 - 9,488,452 Prior period ajdustment - - - (405,536) � I Residual eg4kty transfers in - 682,437 682,437 - y Residual equ'_'ty transfers out (22200,000) (2,200,000) FUND BALANCE - END OF YEAR $ 6,122,180 $11 ,646,077 $ 5,523,897 $10,382,8911 i -- `i`-r -34 � � w� i 1 i SPECIAL REVENUE FUNDS Gas Tax — This fund accounts for revenues and expenditures apportioned under the Streests and Highways Code of the State of Caliornia. Expenditures may be made for any street—related purpose allowable under the Code. i ' Sewer — This fund is used to account for fees received from developers to be used for new sewer facilities. jPlanned Local Drainage — This fund is used to account for fees received from aevelopers to be expended on the City's drainage system. jFederal Revenue Sharing — This fund is uped to account for the receipt and disposition of revenue sharing entitlements. own I� 1 Public Communications » This fund is used to account for monies received from ' cable television rights granted within the City limits. These monies must be expended on community—oriented public television. Other Grants -- This fund accounts for grant monies received from federal, state and county agencies not accounted for in other funds. Expenditures for these monies are restricted to the granting agency's requirements. Park Acquisition and Develo men': — Thi , fund is used to account for fees .., received from developers to develop the City's park system. Flood Control — Ahis fund accounts for the accumulation of monies to be spent on improving the flood control facilities within the City. HUD Subsidy — This fund accounts for transactions of rehabilitation loans made under the Community Development Block Grant program. ..J `J low 41 CITY OF HUNTINGTON PEACH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1985 With comparative totals for June 30, 1984 Planned Federal !� Local Revenue Gas Tax Sewer _Drainage Sharing ASSETS Cash and investments $ 3,647,942 $ 3,607,239 $ 1,958,931 - Accrued interest receivable 21,289 21,738 11,879 — Accounts receivable 4,191 144,219 545,699 — '^ Due from other agencies — — — 359,136 Due from other funds 51,083 72,398 — TOTAL ASSETS 3,673,422 $ 32824,279 $ 2,588,907 S 369, 136 LIABILITIES AND FUND BALANCES r LIABILITIES: Accounts payable $ 148,984 $ 34,419 " 47,490 $ Accrued payroll — — — — Deposits 64,408 — Deferred revenue - 510083 72,398 — Due to other funds — 369,136 TOTAL LIABILITIES 148,984 i49,910 119,8p8 369,136 FUND BALANCES: Reserved for encumbrances 438,792 43027 173,393 — Reserved for long-term receivables — — — — Unreserved: Designated for subsequent years expenditures 916,200 27,200 97,600 Undesignated (deficit) 2L1692446 3,603,842 2,198,026 •� I TOTAL FUND BALANCES 3,524,438 3,674,369 2,469,019 TOTAL LIABILITIES AND FUND BALANCES $ 3,673 1122 $ 3,824,279 $ 2,588.907 $ 369,136 1 _ I I -35- -_ 15- I it �{ SCHEDULE C-1 I i 1 i I i t Park w Acquisition j Public Other and Flood HUD Totals ' Communications Grants Development Control Subsidy � 1985 1984 $ 37,358 $ 336,846 $ 3,435,451 $ 208,050 $ 18,235 $ 13,250,052 $ 10,678,879 ! 224 2,645 20,618 1,345 - 79,738 98,016 �-. - 5,521 173,992 - - 873,622 311,669 110,605 - - - 479,741 950,255 1,0641483 , 3,547,664 � - 4,735,628 4,089,483 37,582 $ 1,520,100 $ 701779725 $ 2G9,395 $ 18,235 3 19_.418,781 $ 16,128,302 t $ 10501 850464 $ 73,426 $ •• $ - $ 390,884 $ 542,621 ^� 3,827 10,042 1091 - - 150260 9,071 - - 1,000 - - 65,408 682 } - 3,547,664 - - 3,671 ,145 3,025,000 ,136 25 4*_928 95.506 3,623,481 - 4,511,833 3,577,399 3,920 456,491 400,852 - - 1,516,775 564,406 - 1,064,483 - •- - 19064,483 1,407,410 i - 96,000 13,431 w - 1,150,431 170,474 28,734 (192,380) 3,139,951 209,395 _ 18,235 11,175,259 10,408 613 i t + 32,6511 1,'424,594 395511,244 209�395 18.235 14,905,948 12,550,903 Ii ......ram ..__._.. $ 37,5 8=2 $ 1,5_20, 100 $ 7.177.725 $ 209,395 $ 1.3 23 19,418,781 $ 16,128.302 t i ,., -36- i I I CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COHBININ IJ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES III FUND EALANCES For the year ended June 30, 1985 With comparative totals for the year ended June 30, 1984 Planned Federal Snecial Local Revenue Gas Tax Sewer Drainage Sharing REVENUES: �. Licenses and permits $ - $ 1200903 $ 2140898 $From use of money and property 349,116 364,301 210,176 - From other agencies 2,583,689 - 1,163,730 1,875,966 Chargee for current services 59_239 - TOTAL REVENUES 2,992,044 485,204 11588=804 10875,966 EXPENDITURES: City Aftiniatrator - - - - Community services - - - - Fire - - - - Police - - - Public Works - - - - Housing and Community Development - - - - Capital outlay 11798,146 558�20�i 1,420,078 ; TOTAL EXPENDITURES 1,7980 46 558,203 1,420tO78 - �- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,193,898 (72,999) 168,726 1#0750966 MIER FINANCING SOURCES (USES): Operating transfers in - - - - Operating transfers out (1 ,219 941 ) - (1 ,875 966) i TOTAL OTHER FINANCING SOURCES (USES) (1 ,2191.941 ) - - (1,875,966) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURE.` AND OTHER USES (26,043) (72,999) 168,726 -- FUND BALANCES - BEGINNING OF YEAR 3,550,4C: 3,747,368 2,300,293 - Prior period adjustments - - - - Residual equity transfers in - - - FUIID BALANCES - END OF YEAR $ 3.524,438 $ 3,674,369 $ 2,469,,019 $ - I -37- 5� .a. SCHEDULE C-2 1 + 1 rr I Park Aquisition 1 Public Other and Flood HUD Totals Communications Grants Development Control Subsidy 1985 1984 $ - _ - $ 2,036,117 $ - - $ 2,371,918 $ 1,715,251 ' 7,206 35,074 218,389 9,395 46,922 1,240t579 1,686,432 156,723 1,154,696 - - - 6,934,804 0,065,337 - - - M 59,239 85,008 163,929 1p189,770 2,254,506 9,395 46,922 10,606,540 �11,552,028 I 979452 - - - - 979452 - - 3,478 114,119 - - 1179597 1149730 i - 240376 - - - 2493715 - - 7,718 - - -- 7,7111 - - 26,494 - - - 26,494 - - 2139221 - - 448,744 661,965 394,339 58,091 675,423 2092045 - - 4,718,986 5L204,193 155W .543 950,710 323, 164 - 448,744 5,654,588 5,713.262 8,38.6_ 239,060 1.931,342 9,395 (401,822) 4,951,952 5.838,766 .. - 300,000 - 328,309 628,309 - �' (328,,309) - - (3,424,216) (3,888,664) (328,309) _ 300,000 - 328,309 (2,795,907) (, 3,88_8,664) "+ 8,386 (89,249) 2,231,342 9,395 (73,51 ) 2,156,045 1,950, 102 24,268 1,513,843 4047,902 - 527,210 16.011,365 14,061,263 - - (3,025,000) .- (435,462) (3,460,462) M 200,000 2009000 $ 32,654 $ 1,424,594 $ 3,554,244 S 209,395 18,235 $ 14,906,948 $ 161011,365 I .,i -38- s 1 OAR SCHEDULE C-3 CITY OF HUNTINGTON BEACH l+ SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL F•.�, the year ended June 30, 1985 SPECIAL GAS TAX w Variance Favorable Budget Actual (Unfavorable) REVENUES: Other taxes $ 2,291,000 2,431 ,881 $ 140,881 From use of money and property 180,000 349, 116 169, 116 From other agencies 1,047,000 151v808 (895,192) Charges for current services 285,000 59t239 (225,761 ) TOTAL REVENUES 3,603_,000 2,992,044 (810,956) EXPENDITURES: Capital outlay 4,566,884 1798,146 2,','68,738 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (763,884) 1,193,898 1,957,782 OTHER FINANCING USES: _ Operating transfers out 1,140,000 Y 1�219,941 79,941 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (1 ,903,084) (26,0113) 1,877,8111 FUND BALANCE - BEGINNING OF YEAR 31550,1181 3,550,481 FUND BALANCE - END OF YEAR 1,646,597 $ 3,524�438 $ 1,877,8111 SEWER } REVENUES: i Licenses and permits $ 32,000 $ 120,903 w 88,903 From use of money and property 1800,000 364,301 184,301 TOTAL REVENUES 212,000 485.204 273,204 EXPENDITURES: Capital outlay 1,925.163 558,203 1,366,960 EXCESS OF REVENUE OT.sn" (UNDER) EXPENDITURES (1,713,163) (72,999) 1,640, 164 FUND BALANCE - BEGINNING OF YEAR 3,747,368 _ 3,747,368_ FUND BALANCE - END OF YEAR $ 22034,205 $ 3.674.369 $ 1,640, 164 1 -39- S� _1 SCHEDULE C-3 CITY OF HUNTINGTON BEACH j SPECIAL REVENUE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ; CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For, the year ended June 30, 1985 PLANNED LOCAL DRAINAGE I Variance - Favorable Budget Actual (Unfavorable) � I REVENUES: � Licenses and permits $ 250,000 $ 2140898 $ (35,102) From use of money and property 150,000 210,176 60,176 PM From other agencies - 1,163,730 1,163,730 TOTAL REVENUES 400,000 1,588,804 11188,804 .,� EXPENDITURES: Capital outlay 2,732,981 16420#078 1 312 903 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (2,332,981 ) 166,726 2,501,707 FUND BALANCE - BEGINNING OF YEAR 2,300,293 2,3002293 1 FUND BALANCE - END OF YEAR Z (32 688)$ 2,469,019 $ 2t501.707 {, i ii N FEDERAL REVENUES: From use of money and property $ 400000 $ - $ (40,000) From other agencies 1,549,000 1,875,966 326,,966 -� TOTAL REVENUES 11589,000 _11875,966 286,966 OTHER FINANCING USES: ,.j Operating transfers out 1,589,000 1,875,966 (286,966) EXCESS OF REVENUE OVER OTHER USES — -. — FUND BALANCE — BEGINNING OF YEAR -� FUND BALANCE — END OF YEAR $ $ L i L -40- �� 5 U I, SCh9DULE C-3 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the year ended June 30, 1985 PUBLIC COMMUNICATIONS Variance Favorable Budget Actual (Unfavorable) REVENUES: From use of money and property $ - $ 7,206 $ 7,206 From other agencies 166,000 156,723 (9,277) TOTAL REVENUES 166,000 163,929 (2,071 ) EXPENDITURES: City Administrator 115,636 97,452 18, 184 Capital outlay 61j403 58,091 3,312 r TOTAL EXPENDITURES 177,039 155,543 21,496 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (11,039) 8,386 190425 FUND BALANCE - BEGINNING OF YEAR 24.268 24,268 FUND BALANCE - END OF YEAR $ 13,229 $_ 32,654 $ 19,425 OTHER GRANTS REVENUES: From use of money and property -- $ 35,074 $ 35,074 From other agencies 1,515,000 1.154,696 (360j304) TOTAL REVENUES 1,515,000 1, 189,770 325,230 EXPENDITURES: - Fire 28,701 24,376 4,325 Police 18,000 7,718 10,282 Community services 30840 • 3,478 362 _ Public works 27,600 26,494 10106 Housing and Community Development 207,878 213,221 (5,343) Capital outlay 31423,431 6759423 2.748,008 TOTAL EXPENDITURES 3,709,450 950,710 �2,758,740 EXCESS OF REVENUE OVER (UNDER) i ^ EXPENDITURES (2,194,450) 239,060 2,433,51C OTHER FINANCING USES: Operating transfers out 328,309 (326,309) - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (2, 194,450) (89,249) 2, 105,201 FUND BALANCE - BEGINNING OF YEAR 1,513,843 1L513.843 - FUND BALANCE (DEFICIT) - END OF YEAR 5 (680,607)s 12424,594 $ 2,105,201 57 -41- SCHEDULE C-3 I CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ,,. CHANGES IN FUND BALANCES — BUDGET AND ACTU/.L I ' � For the year ended June 30, 1985 f PARK ACQUISITION AND DEVELOPMENT i Variance Favorable Budget Actual — (Unfavorable) REVENUES: �.. ' Licenses and permits $ 1,998,000 $ 2,036,117 $ 28017 From use of money and property 501000 218,389 168,389 TOTAL REVENUES 2,0481000 � 2,254,506 206,506 .1 EXPENDITURES: Comawn ity services 165, 119 114,119 510000 Capital outlay 2,089,244 209,045 1,880,199 TOTAL EXPENDITURES 2,254,363 3231164 iL931 :199 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (206,363) 1031,342 2, 137,705 OTHER FINANCING USES: Operating transfers is — 300,000 30OX000 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (206,363) 2,231,342 2,437,705 -� FUND BALANCE — BEGINNING OF YEAR 4,347,902 4,347,902 Prior period adjustment (3,025,000) (3,025_,000) r� I FUND BALANCE — END OF YEAR $ 1,116,539 $ 3,554,244 $ 2,437.705 FLOOD CONTROL REVENUES: ' From use of money and property $ $ 9,395 S 91395 FUND BALANCE — BEGINNING OF YEAR Residual equity transfers in _ 200,000 2001000 i FUND BALANCE — END OF YEAR $ — $ 209 395 $ 209,395 i , —42— SCHEDULE C-3 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES — BUDGET AND ACTUAL For the year ended June 30, 1985 HUD SUBSIDY Variance Favorable Budget Actual (Unfavorable) REVENUES: From use of money and property $ — S 46,922 $ 462922 r. EXPENDITURES: Housing and Community Development — 448,7114 (448,744) EXCESS Or REVENUES OVER (UNDER) EXPENDITURES (401 ,822) (401,822) OTHER FINANCING SOURCES. Transfers in — 328,309 328,309 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES — (73,513) (73,513) FUND BALANCE — BEGINNING OF YEAR 527,210 527,210 — Prior period adjustment (435,462) (435,462) FUND BALANCE — END OF YF'AR $ 527,210 $ 18j235 $ (50$,975) I CITY OF HUNTINGTON BEACH SCHEDULE C-3 SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the year ended June 30, '1985 1 TOTALS Variance Favorable Budget Actual (Unfavorable) REVENUES: Licenses and permits $ 2,280,000 $ 2,371 ,918 $ 9109:8 From use of money and property 600,000 10240,579 640,579 From other agencies 6,568,000 6,934,804 366,804 J Charges for current services 285,000 59,239 -025,761 ) !! 1 TOTAL REVENUES _9,733,000 10,606.540 873,54� j I EXPENDITURES: Administration 115,636 97,452 18,184 j Cmmziunity services 168,959 117,597 51062 Fire 28,701 24,376 4,325 Police 18,000 - ,718 10,282 j ,.. Public works 27,600 26,494 1,106 Housing and community develo;:ment 207,878 661,965 (454,087) Capital outlay 14,799,106 4,713,986 10,080, 120 TOTAL EXPENDITURES 15,3651880 _5,654,58B 91711,292 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (5,632,880) 4,951.952 10,584,832 OTHER FINANCING SOURCES (USES): Operating transfers in 628,309 628,309 Operating transfers out (2,729,000) (3,4?4,216) (695t 216) N TOTAL OTHER FINANCING "w SOURCES (USES) ,(_2,7291000)__2,795,907 (66#907) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (8,361 ,880) 2, 156,045 10,517,925 FUND BALANCES - BEGINNING OF YEAR 16,011 ,365 16,011,365 - Prior period adjustment - (3,460,462) (3,460,462) Residual equity transfer: in - 20-0 000 2001, FUND BALANCES - END OF YEAR 7,649,485 $ 14,906,9118 $ 7,257,463 .-44- i DEBT SERVICE FUNDS 1970 Park Bond — This fund records the accumulation and distribution of monies to meet the debt service requirements of the City's 1970 Park Bonds, a general obligation bond. Redevelopment Agency -- This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Redevelopment �} Agency. Public Facilities Corporation — This fund records the accumulation and disbursement of monies to meet the debt service requirements of the first and second leasehold mortgage revenue bonds of the Huntington Beach Public Facilities, Corporation. -� Parking Authors — This fund records the accumulation and disbursement of monies to aeet the debt service requirements of the Parking Authority Revenue it Bonds. i All I � I i 1 I 1 � w.J 1 I 1 1 M 1. CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS ^- COMBINING BALANCE SHEET Jun-: 30, 1985 With comparative totals for June 30, 1984 1970 Park Bonds ASSETS: Cash and investments $ 45,730 Cash with fiscal agent - Taxes receivable 7,755 Interest receivable 269 TOTAL ASSETS $ 531.754 i FUND BALANCES: Reserved for Debt Service S 53L-154 r- -45- 3 �w SCHEDULE D-1 i r , i I Public: Redevelopment Facilities Parking Totals Agency Corporation Authority 1985 1984 i $ 64,775 $ — $ — $ 110,505 $ 14,535 -� — 4,519,808 1038, 129 5,657,937 5,6919965 10686 — — 9,4111 11,490 448 102,966 11,289 114.972 141,911 !� 66,909 4,622,774 $ 1�149,418 $ 5,892,855 $ 5,8591901 66r 909 $ 4,622,774 $ 1,149,418 $ 5,892 B55 $ 5,859,901 i i ^'1 I -46- w 1 i I I CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES r For the year ended June 30, 1985 With comparative totals for June 30, 1984 1970 Park ~' Bonds REVENUES: Property taxes $ 489,209 From use of money and property 6,782 TOTAL REVENUES 495,991 i EXPENDITURES: Principal retirement 245,000 Interest and fiscal charges 223,262 TOTAL EXPENDITURES 4668,262 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 27,729 OTHER FINANCING SOURCES: Operating transfers in Proceeds from Certificates of Participation TOTAL OTHER FINANCING SOURCES EXCESS OF REVENUES AND OTHER SOURCES ' OVER EXPENDITURES 27,729 -- { FUND BALANCES — BEGINNING OF YEAR 260025 Residual equity transfer out — FUND FUND BALANCES — END OF YEAR $ 53,754 —4 7— n SCHEDULE D-2 i ! Public Redevelopment Facilities Parking Totals Agency Corporation Authority _ 1985 1984 $ 60,103 $ — $ — $ 549,312 $ 470t887 6,806 489,278 121,944 624,810 653,861 f 66,909 _ 489,278 121 ,944 1�174j 122 1,124,748 560,000 155,000 960,000 8600000 654,317. 58,5?5 _ 936,104 970,149 1,214,317 213t525 1,896,104 1,830,149 66,909 (725,039) (91 ,581) (721 ,982) (705,401 ) r — 10253,900 214,675 1,468,515 1,253,900 IJ — — 713,639, 1,253,900 2142675 1,4681575 1,_967,539 1 669909 5289861 123.094 746,593 1,262,138 Cf 7130639 4,093,913 1,026,324 5,859,901 4,597,763 (713,639) - - (71.3 z 639) A 66,909 4,622,774 3 1,149,418 $ 5 892 855 v 5 859 9u1 ..._ .� .r... I1 � . -48- Qa SCHEDULE 0-3 CITY OF HUNTINGTON BEACH " DEBT SERVICE FUNDS Pft COMBINING •' 04T OF REVENUES, EXPF"DITURES AND CHANGES 1 BALANCES - BUDGET AND ACTUt'- �•- For th4 ended June 30, 1985 i 1970 Pk.. " BOND Varzance I � l;avc3rabl Bu ;*et Actual ;Unfsyvrable) REVENUES: Property taxes $ 473,. 10 $ 489,209 3 16 ,209 From use of money and property 2,W� 60782 4 ,7F2 TOTAL REVENUES 475,000 _ 495,991 _ a0,991 EXPENDITURES: Principal retirement 245,000 2.45,000 Interest 230,000 2231?62 TOTAL EXPENDITURES 475,000 46L 262 _ 133 ; EXCESS OF REVENUE OVER • r- EXPENDITURES -• 27,729 29 FUND BALANCE -• BEGINNING OF YEAR 26,025 26,025 FUND BALANCE END OF YEAR $ 26,025 $ 53.754 S 217 7 REDEVELOPMENT AGENCY REVENUES: - Property taxes $ - $ 60,103 $ 6% 1D3 From .use of money and property 20,000 6,806 1,4) TOTAL REVENUES 20-P000 66,909 .-.. 6 So9 FUND BALANCE - BEGINNING OF YEAR 713,639 713,639 Residual equity transfers out (713,639) (7,3 639) -- FUND BALANCE - END OF YEAR $ 20,000 $ 669909 ; �I� 6 909 -49- i c d 4 SCHEDULE D-3 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the year ended June 30, 1985 PUBLIC FACILITIES CORPORATION Variance Favorable Budget Actual (Unfavorable) REVENUES; - From use of money ante property $ $ 489,278 $ 489,278 EXPENDITURES; - Principal retirement 560,000 5600000 Interest 654,317 654,317 TOTAL EXPENDITURES 1,214g317 _ 1 ,214,317 - EXCESS OF REVENUE OVER EXPENDITURES (1,214,317)_ ,. ( -25 t 039) 489 A276 �? OTHER FINANCING SOURCES: •� Operating transfers in __ _1,25 .900 1 r•253,900 ,.� EXCESS OF REVENUE OVER (UNDER) EXPENDITURES 39083 528,861 489,278 j FUND BALANCE - BEGINNING OF YEAR � 4,093.91.3 ..,_4,093,913 �j FUND BALANCE - END OF YEAR $ 4,133,496 $ 4,622,774 489,278 ! "t PARKING AUTHORITY REVENUES; -, From use of money and property $ - $ 121,944 $ 121,944 EXPENDITURES: Principal retirement 155,000 155,000 - -, Intereit 58,525 58,525 TOTAL EXPENDITURES 213,525 213.525 - ,,� EXCESS OF REVENUE OV7q (UNDER) EXPENDITURES (213,525) (91 ,581 ) 121 ,944 OTHER FINANCING SOURCES (USES): 7 Operating transfers in 1701050 214,675 44,625 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) ry EXPENDITURES AND OTHER USES (43,475) 123,094 166,569 FUND BALANCE - BEGINNING OF YEAR 1,026,324 1,026,124 - FUND BALANCE - END OF YEAR $ 982,849 $ 1 ,149,418 $ 166,569 f `- -50- .r1 SCHEDULE D-3 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS ~" COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL f` For the year envied dune 30, 1985 TOTALS Variance Fzvorable Budget Actual (Unfavorable) �. REVENUES: Property taxes $ 473,000 549,312 g 76,312 From use of money and oroperty 22,000 624V810 602,810 r.. TOTAL REVENUES 495,000 1,1741122 679,122 ` EXPENDITURES: Principal retirement 960,000 960,000 -- +- Interest and fiscal charges 942,842 936,104 6,738 TOTAL EXPENDITURES 1,9022,842 1,896,104 4 6,7738 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (1,407,842)�(721,982) 685 60 ; OTHER FINANCING SOURCES (USES): Operating transfers in 1,42 ,950 _1,468,575 44,625 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES •- AND OTHER USES 16,108 746,593 730,485 FUND BALANCE - BEGINNING OF YEAR 5,859,901 5,859,901 - ,- Residual equity transfer out (713,639) (713,639) - - FUND BALANCE - END OF YEAR ';.162,370 1 2,855 ?30 485 r .:. 89 .._..._,._. r- -51- 1 "" CAPITAL PROJECTS FUNDS iI Redevelopment Agency, This Fund accounts for acquisition and construction activity in the five Redevelopment Project Areas. Low-Income.Rousing - This fund accounts for development and renovation activity for low-income housing. As prescribed by the California Health and Safety Code, 20% of Redevelopment lgency tax increment revenue is set aside in this fund for the purpose of low-income mousing development. Public Facilities-Corporation - This fund accounts for capital improvements to theCivic Center and Central Library Complexeb. Parking,hu oor-its; - This fund accounts fcr capital improvements made for off- street parking facilities. Special Capital Outlay -- This fund accounts for special miscellaneous capital projects and expenditures not appropriated at the beginning of the fiscal yecr. I � N s/ J CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET r June 30, 1985 With comparative totals for June 30, 1984 i i Redevqlopment i� 1 Agency ASSETS ~` Cash and tart investments ; Cash with fiscal agent - Accounta receivable 1,451 Accrued interest receivable - ' Note receivable Due from other fund TOTAL ASSETS $ 51 i �w LIABILITIES AND FUND BALANCES r- LIABILITIES: Aocounts payable ; Accrued payroll 50359 �- Due to other :und 6,192 TOTAL LIABILITIES 11,551 FUND BALANCES (DEFICITS): Reserved fcr continuing projects - Unressrved (10,100) r' TOTAL FUND BALANCES (DEFICITS) (10,100) TOTAL LIABILITIES AND FUND BALANCES L 11451 I , -52 7� SCHEDULE 8-1 , y , x Low Public Special. Income Facilities Parking Capital TotRls Houu3ing� Corporation Authority Outlay__ 1985 1984 1 :' 100447 155,1.5,, $ 1659606 4 830 001 728,915 - - 7280915 49545,843 - - - 1,451 0, — 45 4,307. 941 — 5,293 31,572 — — — — 823,000 ..1 6,192 - - .- — r 2?.2 i 56 100 a — 90 45 6 2�0,916 1 --� $ - $ — $ — $ — $ — $ 43,977 — 5,359 6,882 6,192 — �� ---- 1+11551 50,859 aim-• w+�.r.w�..-r rr++++rr.n r+r+rra _ _ IJ - 733,222 156,100 - 889*322 406149776 161684 - - 6:58 1,565,281 161684 7 33t222 15� 6,100 - 895,906 6,180,057 16,684 $ 733,222 156,100 $ _ $ 907,457 $ 6,230,916 -53- ` too CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS COMBININU STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the year ended June 30, 1985 With comparative totals for June 30, 1984 .- Redevelopment i Agency REVENUES: •- Property taxes - From use of money and property TOTAL REVENUES EXPENDITURES: Housing and Community Development 304,419 Capital outlay 2,527 TOTAL EXPENDITURES 306,946 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (306,946) OTHER FINANCING SOURCES (USES): Operating transfers in - Advances from General Fund 237,33-. Proceeds from Certificates of Participation •• '` Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) 237,336 �- EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (69,610) r FUND BALANCES •- BEGINNING OF YEAR 4,638,170 Residual equity tt-snafers out (4,578..660) FUND BALANCES - END OF YEAR . __((10,100) -5 4- w A SCHEDULE E-2 I 1 � I Low Public Special Income Facilities Parking Capitel Totals Hourins Corporation Authority Outlay 1985 1984 $ 150026 $ - $ - $ - $ 150026 $ 17,279 w1,654 6 0,162 15,478 52,748 130,046 102,964 �i 16*684 60,162 15.478 52,748 145,072 120.243 f - - - - 3040419 2919315 23,973 29,918 56,418 1,255,082 I .•� r___M__,.,_ 23.973 29,918 360,837 1,546,397 16�684 36JAJ 15,478 22,830 (215,765) f 1-,426,1 54) ._i .. - — — — 193740483 237,336 1 — — _ 3,573,981 .�� .� (411,625) ...� (44,625) 625) - — (44,625) - 192,711 4,948,464 w� 16,684 36,189 (29,147) 22,83G (23,054) 30522,310 697,033 185,247 659,607 6,180,057 2,657,747 (682,437) (51261 ,097) 16i684 733 22 $ 156,100 $ 895,9a6 $ 6,t8o,057 W � I _55- I 1 ENTERPRISE FUNDS �{i Water - This accounts lar the City' ., water service operations to residents and businesses. Meadowlark GnIfCourse - This fund is used to account for the operations of a City-own,d golf course :leased to a private corporation which pays the City a rental am41mt based on the golf course total revenues. ' + Emerald Cove Housing This fund is used to account for the operation of a senior citizen apartment complex leased by the City from the Redevelopment Agency. 7 7 j 7 „y w • � J CITY OF HUNTINGTON MCH ENTERPRISE FUNDS C',MINII;G OSLANCE SHELF June 30, 1935 With comparatl7z totals for June 30, 1984 Water Fund ASSETS CURRENT ASSETS: Cash and term investments $ 4,745,213 Accounts receivable 542,406 ; Accrued interest receivable 28,551 Due from other funds 2",,208 Prepaid expenses TOTAL CURRENT ASSET. REMICTED ASSETS: Cash with fiscal agent 6866 060 PLANT, PROPERTY AND EQUIPMENT (AT COST): Land 410,721 Buildings and improvements 971t219 Machinery and equipment 430130,528 Construction in process 102.4112 44,614,910 Less accumulrted depreciation (17,,289,529) TOTAL PLANT, PROPERTY AND EQUIPMENT 27 2.3 5,581 TOTAL ASSETS 5uz019 ` i LIABILITIES AND FUND EQUITY N CURRENT LIABILITIES: Accounts payable $ 915,374 Accrued payroll 40,199 Deferred tatome 22,208 Accrued interest 11,875 _ Due to other funds Deposits 756,810 Current portion of long-term liabilities , 20u,000 TOTAL CURRENT LIABILITIES !1,950,466 LONG-TERM LIABILITIES: Bonds ppiable 1,111,000 Note payable 366,312 Compensated absences payable 129,705 Certifi4ates of Participation payable - Less current portion (204,000) TOTAL LONG-TERM LIABILITIES G17 TOTAL LIABILITIES ,y 3,353,483 FUND EQUITY: Contributed capital 29,546,802 Retained earnings: Reserved for Debt Service 449,734 `- Unreserved - _ TOTAL FUND EQUITY '-9,996,536 TOTAL LIABILITIES AND FUND EQUITY i :33,3501019 ?r1 -56- 1 SCHEDULE F-1 i Meadowlark Emerald Golf rove Totals Course Housing 19H 1984 I 3a6,708 $ 1,149,461 $ 6,231,382 # 4,589•,516 - - 5429406 524,666 I 2,017 22,347 52,915 - - 22,268 - - 238.377 _ _ 233.377 32.269 338,725 1,410, 185 7,087.288 5,146,051 1 773.423 1,459,483 620,354 3,0529004 1,288,670 4,751095 39462,725 2609820 - 'i,232,039 102320039 358017 - 43,4989545 43,432,817 - 3,777.438 3,879,880 - ^� 3,680,841 5,066,108 539361,859 481,127,581 .1 (409.762) - (17 699 0„) (16,536459) . , 1.079 5,66 , 10 2.7b 31.590.60 # 3,609,804 $ 7,249,716 $ 44,209.539 4 37,357.427 { # - $ 26,185 # 941,559 # 631,101 ,. - - 4n,199 43,094 22,208 ~j 42,114 36,416 900405 429631 -' - 321,000 321,000 955 24,300 781,110 4469546 "1 23,656 _ 227,636 224,108 MJ 65,770 407,901 2,424,137 1,388,435 - = 10111,000 1,271,000 1,8040917 2,171,229 2.234,251 - - 129,705 130,507 -� - 4,600,000 4,600=000 - J (23 656) - (227,656) (224 108) _1L731,2 1 �,000 7, 84,278 3,411,653 -1 1,847,031 51007,901 10,208,415 4,800,085 1,267,3&:4 20121,100 32,935,226 30,805,204 J - 120,715 570,449 448,479 495,449 - 495,449 1,303.659 1,762,773 a 241,815 34 00: 124 _ r s l 32.5572342 S 3,609,804 $ 7,24g,716 $ 44,209,539 $ 37,357,427 l� -57- CITY OF HUNTINGTON BEACH ' ENTERPRISE FUNDS ^' COM3INING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS !� i For the year ended June 30, 1985 With comparative totals for year ended June 30 1984 Water OPERATING REVENUES: Fund� nd Water sales i 7,310,579 Golf acarse rentals - Apartment rentals Other revenues 197z942 TOTAL OPERATING REVENUES 7.308 A21 OPERATING EXPENSES: Water prucNases 1,736,541 PumpLng 2,322,513 ._ Water trQatment 410216 Transmission and distribution 19377,037 ` Administrative and general 101120633 Contributions to General Fund in lieu of taxes 1,097,165 Management - Depre0 et ion ,r 1,189,419 w- TOTAL OPERATING EXPENSES 8l876,524 OPERATING INCOME (LOSS) (1J3681003) NON-OPERATING REVENUES (EXPENSES): `- Interc3t income 541,371 Interest expense -(_56,4 49' ti TOTAL NON-OPERATING REVENUES QXP ENS£S) .485,222 NET INCOME (LOSS) (832,781 ) RETAINED EARNINGS - BEGINNING OF YEAR 1,332,515 RETAINED EARNINGS - EhD OF YEAR $ —58— �t SCHEDULE F-2 I ' Meadowlark Emerald , ) Golf Cove Totals Course — Housing 1965 1984 — S — $ 7010,579 >Z 69168,162 209,425 -- 209,425 188,311 168,525 168,525 209,425 166,525 7,886,411 6,6_91,794 — 1t7360541 948 960 � I 2,3229513 20089,518 41,216 33,834 , �• 19377,037 1,568,539 • 66,882 i,179,515 1,051,867 — 1,097065 941,641 580610 58,610 40..:442 — .'t 230 j 1,228,619 4�0•942 125,492 9.042."8 71862,978 16$,483 4 033 (1,156,487) (1,171,184) 34,718 7?,68-' 653,771 5539885 (127,375) — (183.52_4) (217,540) t92,657) _-- 77,682 —-- 470 R247 326,345 750826 120,715 (686,240) (834,839) _419.623$ 495449 1.752,_138 2,586,977 S 120 71 $ 1,% 5 898 $ 1.752,136 LI LJ , b --59- L CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS COMBIP HG STATEMENT OF CHANGES IN FINANCIAL POSITION For the year ended June 300 1985 '.Jith cAhiaarative totals for year ended June 30, 1'84 r. t Water Fund ' SOURCES OF WORKING CAPITAL: Operations: a. Net income (loss) # (882,781 ) Items not requiring working cupatal: Depreciation 1,189.419 .- Working capital provided by operations 306,638 Contributions from developers 8,922 Contributions from Redevelopment Agency - SAle of Certifieutes of Participation TOTAL SOURCES OF WORKING CAPITAL USES OF WORKING CAPITAL: Increase in plant, property and equipwenL, net 236,399 Increase in restricted assets 65,706 Decrease in long-term note payable 429914 Decrease in long-,term hc,vda payable 1600000 Decrease In cowp,:nsated absences payable 802 TOTAL USES OF WORKING CAPITAL 505.821 NET INCREASE (DECREASE) IN WORKING CAPITAL MO 261 ) ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL; _ Cash and term investments # 397,901 Interest receivable (16,029) Accounts receivable 64,696 Due from other fun.la 22 20F, r- Prepaid expenses '_ Other assets (32,2d9) �- Accounts payable (284,273) Accrued payroll (8,980) -- Deferred income (22,208) Accrued interest payable _ Due to othe^ funds 955 Due to other entities (65,782) Deposits (244,482) Current portion of bonds and notes payable (?.,000) NET INCREASE (DECREASE) IN WORKING CAPITAL $ 0 90 261 ) -60- ri SCHEDULE F-3 1 Meadowlark Emerald Golf Cove Totals _ Co_ urge Houma 1985 1q 4 $ 75,826 $ 120,715 $ (686,240) $ (834,839) 40 942 1,230,361 1,2282619 116,76 120,715 544,121 393,7 0 - - 8,922 816,327 20121,100 29121 ,100 - 4J600,300 4j0001000 - 116,768 _ 6,841 ,g15 7LP-7. 11143 1,210,107 1 - - 51066,108 5,302,507 38,763 773,423 839029 1#0239261 '1 23,656 - 669570 68,021 i - - 160,000 160,000 - - 802 23,656 5t839,531 6,3659S 008 1,290,045 I F# 93,1 2 $ 1,002,284 $ 906,135 7919 8 94,504 $ 1 ,1490461 $ 1 ,6419866 $ (530,382) j (361) 22,347 5,957 - •� - - 649698 147,787 22,208 - 238,377 238,377 - M' (32 9 269) (26,185) (310,458) (54.: (81960) - (229206) 517 (369416) (35,899) 3,694 (321,000) (3209045) 407,291 (24,300) (909082) - (244,482) (36,756) - ) - (3,548) (4,446) _�.93.112 1,OG2,284 90�5,135_ $ 79,938 + -61- � � Q � vrV Wab I i a+r 1 INTERNAL SERVICE FUNDS Self Insurance — This fund accounts for the City's self insurance activities (liability, health and workers' compensation). Enuivrent Replacement — This fund accounts for the,...� purchase and operation of certain vehicles and equipment leased to City departments, t 1 1 ' i 4, SCHEDULE G-1 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS ur 60 COMBINING BALANCE SHEET June 30, 1985 With comparative totals for June 30, 1984 Self Equipment Totals Insurance _ Replacement�� 1985 1984 i ASSETS � I CURRENT ASSETS: Cash and term investments $ 3,016,638 ; 2,367,764 ; 5,384,402 $ 3,897,870 Accounts receivable 8,498 8,498 1,002 Interest receivable 18,152 14,343 32,495 38.339 Due from other funds - - - 25,427 TOTAL CURRENT ASSETS 3,043,288 2,.382.107 5.k?5i395 3,962,638 PROPERTY AND EQUIPMENT (AT COST): Machinery and equipment 245,339 245039 - ! Accumulated depreciation - (24,012) (24,012) - TOTAL PROPERTY AND EQUIPMENT - 221 ,327 _ 221,327 TOTAL ASSETS ; 3,043,288 $ 2,603.434 ; 5,645y722 ; 3,9622638 ` .� LIABILITIES AND FUND EQUITY w CURRENT LIABILITIES: yi Accounts payable ; 71043 ; 1,565 $ 720908 ; 129,952 Accrued payroll 24,807 - _?4a807 ---31,739 TOTAL ,CURRENT LIABILITIES 96,150 _ 1,565 f7,_715 161 ,691 LIABILITY FOR SELF-INSURANCE CLAIMS: ..� Workers compensation 3,150,000 - 3,150,000 2,652,000 ! Health 290,000 - 290,000 290,000 " General liability 1,746,000 1,746,000 1,525,000 TOTAL LIABILITY FOR �.1 SELF-INSURANCE CLAIMS 5,186.000 51186,000 4#467,000 TOTAL LIABILITIES 5j282,150 1,565 __5,283,715 � 1628,691 FUND EQUITY: � Contributions from General Fund - 2,000,000 2,000,000 - Retained earnings (deficit) (2,238,862) 6012869 (1,636,993) (666,C53) TOTAL FUND EQUITY (DEFICIT) (2,238,862) 2,601,869 363,007 (666,053) r' TOTAL LIABILITIES AND -� FUMD EQUITY $ 3,043,288 ; 2,603,434 $ 5,646,722 ; 3,962,638 ._. w6e r 1 p _ J I n CITY OF HUNTINGTON BEACH SCHEDUI-E G-2 INTERNAL SERVICE FUNDS - ,. COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES ?N RETAINED EARNINGS r For the year endcJ June 30, 1985 With comparative totals for June 30, 1984 Self Totals �Insurance Replacement -- 1985 _ 19"P OPERATING REVENUES: Charges for service $ 3t452„,.842 $ 477,3c5 $ 3,3,01 y7 2,L97.964 OPERATING EXPENSES: Perx nnel services 203,486 2030486 237,847 Administration and general 1, 103,«� 67,440 1,170,665 456*0112 ~"Depreciation - 240012 24,012 Workers compensation claims 1,335,139 Employee medical claims 1780428 - 19335,139 1,934,670 Liwillity claims , , - 1,7900428 10570464 r- 977I 958 97�958 925 539 I TOTAL OPERATING EXPENSES 5,400.236 _ 911452 5 491 688 42 911 j 562 ... OPERATING INCOME (LOSS) (1,947,394) 3E5,853 (1,561 ,541) (2�513.598) ' NON-OPERATING REVENUES: Interest income 74,585 216,016 _ 590,601 436,623 NET INCOME (LOSS) (1 ,572,809) 601 ,869 (970,940) (2,076,975) RETAINED EAHNINGS (DEFICIT) - BEGINNING OF YEAR (665.05 ) - (666 1 410,922_ RETAINED EARNINGS (DEFICIT) - END OF YEAR S(2.23$.$62)$ 601 ,869 $Q 63-, 6,993)s (666,053) r —63- �}J CITY OF HUNTINGTON BEACH SCHEDULE G-3 INTERNAL CERVICE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL. POSITION For the year ended June 30, 1985 With comparative totals for June 30, 1984 ,a j Self Equipment Totals Insurance Replacement , _ 198r 5 19 4 j SOURCES OF WOR't7NG CAPITAL: I Operations: Net income (loss) S(1,572,809)$ 601,869 (970,940)$(2,076,975) Items no requiring working capital: Depreciaton - 24,012 2119012 Working ea^ital provided • 1 (used) by operations (1,572,809) 525,881 (946,928) (2,076,9751 I Increase in self-insurance claims payable 719,000 -- 719*000 1,115,781 Contribution from General Fund - 2.000,000 2.000_0-000 l I TOTAL SOURCES OF WJRKrKG CAPITAL (853,809) 2,625t881 1,772.0•72� (961 ,194) USES OF WORKING C! "ITAL: -1 Acquisition of fixed assets 245,339 245.339 NET INCREASE (DECREASE) IN -• WORKING CAPITAL $ (853 8O9)S 2,380,542 S 1,526,733 S (961,194) �.I ELEMENTS OF INCREASE (DECREASE) .., IN WORKING CAPITAL: Cash and term investments $ (881 ,232)S 2,367,764 $ 1,486,532 $ (819,378) Accounts receivable 7,496 - 7,496 3,864 Interest receivable (20,187) 14,343 (5,844) w Due from other funds (25,427) - (25,427) (70*579) Accounts payable 58,609 (1,565) 57,044 (50,463) Accrued payroll 6,932 - 6.932 (211.638) w MET INCREASE (DECREASE) IN WORKING CAPITAL S (853,809)i 2.38R,542 S 1.526.733 $ (961. 194) .� 64- iw" - l i i AGENCY FUND Emeloyee Deferred Compensation — This fund accounts for the deposit of monies authorized by employees to be withheld from salaries for payment at a later date. The City retains title to the funds until the employee withdraws the funds, which may not be done until employment is terminated, i i .1 i "1 M� r.Y jl1 1� w� C CITY OF HUNTINGTON BEACH SCHEDULE H»1 AGENCY FUND I STATEMENT OF CHANGES IN ASSETS AND LIABILITIES June 30, 1985 + June 30, June 30, 1984 Additions Reductions 1985 EMPL()YEE DEFERRED COMPENSATION FUND ASSETS: Cash and term deposits $ 40125,709 $ 1,59i,336 $ 165,989 $ 5,557,056 Notes receivable, net or allowance for amounts uncollectable 246,158 13,300 113*852 145,606 ! Other assets 29,375 - - 299375 TOTAL ASSETS $ 41401 ,242 $ 1.610`636 $ 279.8'11 5,732,037 LIABILITIES: 7 Note payable $ 29,375 $ -- i 575 = 28,8CO Employee deferred compensation 4,3712867 1.497.359 165,989 5,703,237 J TOTAL LIABILITIES $ 4,401,242 $ 1,497,359 166,564 1-5,732.r�7 7 wit wry J ' I F} J • t -65- I tab GENERAL FIXES ASSETS ACCOUNT GROUP This group is used to account fer CIXLd assets of the City which ore used in the performance of general government functions and are not accounted for in •j proprietary fund operations. I VIM I CITY OF HUNTINGTON BEACH SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE June 30, 1985 GENERAL FIXED ASSETS: Land Build<ags ; 25,871,29O Machinery and equipment 23t450,615 Improvements other than buildings 9,329,761 Construction in progress 60846,597 1,119,580 TOTAL GENERAL FIXED ASSETS i 66,617.843 - �I INVESTMENTS IN GENERAL FIXED ASSET General Fund S FROM: 1 Special ;tevenue Funds $ 11v434,156 Capital Project Fund 13,363,634 �-} Donations 210216,765 �2_ 0,03,288 66,617,843 wJ ' tia �1 r J r I G G C �(� -66- GENERAL LONG—TERM DEBT ACCOUNT GROUP riThis group is used to account for Citylong—term debt g not reported in r proprietary fund operations or accounted for in Trust Funds. i l J f ' I J f J J w ,� I I CITY OF HUNTINGTON BEACH STATEMENT OF CHANGES IN GENERAL, LONG—TERM DEBT June 30, 1985 i &,lance Balance Outstanding Outstanding ,.� June 30, Transfers/ June 30, 1984 Additions Retirements 1985 1970 Park Bonds 3,6950000 $ — $ 270,000 $ 3,425,000 + Public Facilities Corporation Leasehold Mortgage Bonds 12,000,000 560,000 '+1,4409000 — Parking Authority Revenue Bonds 1,325,000 — 1550000 1,170,000 California Coastal Conservancy Note Payable - 208,90 _ 208,900 Compensated absences 2,696,000 262,925 2,958,925 Certificates of participat' )n 4,6009000 — 4960U,000 -- i Equipment leases 316,043 — 103,712 212,331 Due to Other Funds 5,085,589 1L218,606 310,000 5,994`195 I ^'' Totals $ 29,717,632 $ 1,690,431 $ 5,998,712 $ 25,409,351 i .J r� .a�r rn .a -67- I -1 I 4 ' i A . y • J f -, STATISTICAL SECTION _i i - y� J ..i 1 CITY OF HUNTINGTON BEACH GENERAL FUND REVENUES BY SOURCE i Last ten fiscal years r 1 . Licenses Use of , Fiscal and Fines and Honey and Year Taxes Permits Forfeitures PropeUX_ ,.. 1976 3 14,034,909 $ 2,588,932 $ 135,216 ; 907,1170 1977 170429,627 20817,209 214,808 1,050,938 1978 200444,982 2,653,129 216,362 10415,212 r 1979 19.. +96,64C 2,485,540 224,026 1,8 i 11,115 1980 23,881,999 2,597,954 398,077 1,820,700 1981 28*245,128 21984,303 1,526,072 2,552,637 1982 31r984,635 2,?36,785 1,515,914 3,223,113 r- 1983 36,017,526 29673►912 1,?48,817 3,237►373 1984 39025,358 3►384,322 1,923,143 3r734,107 1965 42,9979096 3,591►493 2,093,975 3,899►972 ,- Source: Administrative Services Department, City of Huntington Beach i -68- 1 EXHIBIT A 1 i Charges From Other For Current Other Agencies Services Revenue Total t $ 2,040,207 i 825,912 i 49,277 $ 20,5810923 20567,992 942,760 48,714 25,072*048 3,0760250 938,182 990600 28,843,717 I 1 5,502t464 953,790 84,458 30t561,033 3,874,763 1,158,294 91,149 339822,736 i 4g495,328 19382455 366 41,551,648 7 2,671,003 1053,439 529,704 43,814,593 _a 1,459,278 1,916,286 1079002 48.233,094 1,871,9B8 1,924,893 1,0529519 5?,2160830 ., 5,953,540 2,202,185 364,156 61,102.417 ^I 1 _B9- EXHIBIT B j CITY OF HUNTINGTON BEACH GENERAL FUND EXPENDITURES BY PROGRAM Last ten V.scal years l Fiscal Support Public Public Total Year Administrative Services Services Safety __.. General Fund r� 1976 $ 311940089 $ 1,247,564 6,653,560 12,233 A05 $ 23028,618 I 1977 2,.j64,478 2g493,348 79747,535 14074,326 26,9790687 1978 30635,719 1,814,454 8,673,505 14,953,652 29,077,330 1979 5,594,195 2,375,756 7,786,972 16,709,463 32,466,386 j 1980 6,723,175 2,001,015 11,387,668 16,789,782 36,901,644 71981 5,001,191 4,792,744 11,784,064 18,916,394 40,494.193 ' 1982 4,493,484 3,65i:,024 15,516,826 20t429,266 44,093,600 1 1983 4,592,245 3,237o842 18,533,206 22,383,746 48,747,039 1984 6,097073 3,479,597 20,241,764 23,358,399 53,177033 J 1985 6,349,349 3098015 23,661,582 260584082 59,693,628 _.1 J i Source: Administrative Services Department, City of Huntington Beach I i II f I W CITY OF ll"TT f1GT0;1 PtZOPEffTY TAX UEACff LEVxE5 AND CO? Cr Ten Fiscal r01JS Lr st .year J (Unaudited) Fiscal. Year T"" o`..-Ot� "..,.�--....., Lev ".."..-- _Secured fdtoj-...,._ ,..Taxes 1975 Col�lons t 8►852,049 ---�� Del in uE � A��, ,punt nc 14T7 9,982 8,587,764 "`"" Percent 197,E ,983 82,622 9,844,45� 12►563. 144 •g' 1979 ia,336g34 1i6,794 5,63.5,879 , 19Q0 5,525. 12u 186,310 1. 17 8,842,899 1 1.49 19g1 80602 1Q,7S9 10,244,68Q ,751 1 r 97 1982 ,2 240, 148 10o300P308 ►496 1983 9r 67 352, 184 2•'12 11,405#210 ,563 19$4 11 9,893. 116,6g 406►745 3.44 11,402,791 9 1985 288.511 3.95 11,E64 12;418,398 0690 430,471 2.53 11,633,797 3.78 424,700 3.42 Source: AdministM w ative Sew . ... t ices Department, City op Hunt ington Beach 77 -71.. 4 �''�'.' / .� 1 9 tf„G:.; i ��r'r r a�'1,i '4 .�a Ji.f; r.•7 �'+�` Y �'`, 1 f° � ��. r k /. �A l. �Jr ••I 1 .�i 11, 5f 1�M.. J. �f•n h �.:�''� ���, iS � �.. y �'IIf a7 kr J': ;� '��: :.f� ,yi�n�••v!f" `r'r� �' ,t.y t; � A! r;,r ` '}y.,l�J, v��'th� �� r•E�'•i..•.! 'r,Y 1'j!*}'rr 1�.",i ;�r r.'r 4+f�. '��'�r rW. t p�F r �, �` 1�;, byMF���.�::✓ � + .5. .� r:��}�' � � 'l T' �.� ,{' 17P0. irll I ��I ., ;� �. ,.r. ra:..�:.:i..� s7t�.k.Lr:.�l..:.�..J.Ll.�..it..:i:`....�..:j1..........-%C..�.......:.._..�.-�..:.. .! '..L•�.,..:..w�:�:_.L:J..s�.:.7.:�,uW::..4.. .�.i.il. ii. .'' 1 � t.i. �Lr: -EXHIBIT C rsry I al 1 sec ed s Un ur Taxes , Total Total Delinquency Levy Collections Amount Percent 1 $ 545,344 $ 516,539 28,798 5.28 17 5499994 538,370 6,791 1.23 1 "42053 711,519 30,5311 4.11 1 561 ,420 537,307 24,113 4.30 861 ,9T6 839,468 22,508 2.61 827,168 789,078 38090 4.60 '7 808,024 737,425 469596 5.77 960,008 908,666 51042 5.35 982,118 942,305 250543 2.60 1,0329103 955,100 339094 3.21 -72_ a�b i. r 1 e MY CITY OF HUNTINGTON BEACH GENERAL BONDED DEBT RATIOS ,�.. Last Ten Fiscal Years Assessed Ratio of General Market Debt to fiscal Bonded Value* Assessed , Year Debt On 1,000n) Valuation Po ulation 1976 $ 5,410,000 $ 2,322,492 .23% 151 ,500 1977 5,220,000 2,840,296 .18% 157,800 1978 5*020,000 3,417,288 .15% 161 ,301 1979 4,810,000 39327,136 .14% 167,409 1980 4,590,000 3,935,712 .12% 172,200 1981 4,360,UOO 4,297,220 .10% 173,393 1932 4,1509000 5,219,684 .08% 175,714 1983 3.930000 5,672,214 .07% 178,706 19814 39695000 6,292,926 .06% 179,990 1985 3e425,000 6,825,900 .05% 1810000 Sources Administrative Services Department, City of Huntington Beach Orange County Assessor *Market value represents assessed valuation except for fiscal year 1976 through 1961. For t)? ese years assessed valuation was 25% of market value. Property is assessed under guidelines of Proposition 13, =3— i EYIIIBIT D I ' Ratio of Debt Service �1 Bonded Debt Total j Debt Debt Service General Fund Per Capita Principal Interest Total Expenditures $ 35.71 $ 170*000 $ 3180425 $ 488,425 2.1% 33.08 190,000 310,450 500,450 1.9% i 31.12 200,000 301,925 501 ,925 1.7; 28.73 210,000 292,437 502,437 1.5s 26.65 220,000 282,375 502,375 1.4% 7 25.14 230000 272,737 502,737 1.2% J i 23.62 210,000 260,525 470,525 1.1% 21.99 2?.0,000 248,-.:.0 468,450 1.0% 20.53 235000 235,800 470,8CO -19% 18.92 270000 221,700 491,700 .8% t I � f 1 i -74- ' �ub CITY OF HUNTINGTON BEACH EY.iiIBIT E PROPERTY TAX RATES - ALL OVZRLAPPING GOVERNIiENTS '- (Per $100 of Assessed Valuation% Last ten fiscal years r, Metropolitan Fiscal Basic Orange School Water Year Levy City county Districts � District Gthera total - 1973-76 S - j .40500 $ .40750 $ 1.55712 8 .03500 $ .11338 $ 2.51500 1976-77 - .40500 .35750 1.52302 .03250 .13013 2.44805 1977-78 - .38750 .33250 1.56920 .03250 .12020 2.44190 1978-79 1.00000 .04930 .00080 .14987 .02750 .00428 1.23175 1979-80 1.00000 .04930 .00070 .12572 .02560 .00393 1.20465 r- 1980-81 1.00000 .04635 .00057 .12430 .02225 400325 1.19672 1981-82 1000000 .04635 .00050 .12810 .01980 .00270 1.19745 r- 198243 1.00000 .05756 .00043 .11656 .01660 .00237 1.19352 1933-84 1.00000 .05682 .00039 .12096 .02370 .00210 1.20397 '^ 1985-85 . 1.00000 .05630 .00032 .09962 .01560 .00177. 1.17361 Source: County of Orange -75- tp a - CITY OF HUIIT114GTON BEACH EXHIBIT F wa COIiPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 1985 IL1 I �* 1934-85 Assessed Valuation: $6,825,899,949 (after deducting $7,905,635 ` redevelopment tax allocation increment) .l Amount Percent Outstanding DIRECT AND OVERLAPPING BONDED DEBT: Applicable June 30, 1985 M, _ Orange County 8.354 $ 210,103 Orange County Building Authorities 8.354 1,045,QO1 orange County Flood Control District 8.354 1,006,239 Metropolitan Water District 1.756 7,856,993 Municipal Water District of Orange County Water Facilities Corporation 10.824 8,008,280 •i Orange County Sanitation District 03 11,170 246,745 J Orange County Sanitation District 111 99.923 413,681 Coast Community College District Authority 30.864 5,770,024 _. Los Alamitos Unified School District 2.046 20,255 Huntington Beach Union High School District 70.8211 2,478,840 Fountain Valley School District 32.094 189054 Huntington Beach School District 97.118 20257,993 Ocean View School District (Various issues) 92.478-92.759 2,726,945 Westminster School District (Various issues) 30.438-30.735 25,931 City of Huntington Beach 1u0.000 3,450,000 �- City of Huntington Beach Building Authorities 100.000 1,2.8400 -10 -. TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT 480546,384 Less: MWDOC Water Facilities Corp. (100% self-supporting) 8,0081280 TOTAL HET DIRECT AND OVERLAPPING BONDED DEBT $ 40j538,104 RATIOS TO ASSESSED VALUATION: Direct Debt ($16,290,000) 0.24% Total Gross Debt 0.71% Total Net Debt 0.59% SHARE OF AUTHORIZED AND UNSOLD BONDS: Metropolitan Water District $ 6,409,400 Fountain Valley School District $ 1,588,011 Ocean Viest School District $ 3,80,675 STATE SCHOCL BUILDING AID REPAYABLE AS OF JUNE 30, 1984: $38,903,408 Source: California Municipal statistics Inc.P r 76- tati EXHIBIT G + CITY OF HUNTINGTON BEACH I COK UTATIOF Or LEGAL DEBT MARGIN June 30, 1985 I i rry I; Asa .ased Valuation $ 6,825,900,000 Debt limit: 15% of assessed value 1023,885,000 II J Amount of debt applicable to debt limit: ' 7 Total bonded debt� ; 3,425,000 Less nat assets in debt service fund 53_,7.511 Total amount of debt applicable to debt limit 3,371 ,2116 Legal Debt Margin $ 1,0209513,754 Source: Administrative Services Department, City of Huntington Beach i i I J _J �1 —77— l�3 FPWAUWAXMI CITY OF HUNTINGTO3 BEACH WATER REVENUE BOND COVERAGE Last Ten Fiscal Years Expenses Not Revenue (Excluding Available Fiscal Total Interest and for Debt Year Revenues Depreciation) Service 1976 i 3,798,707 3 2,591 ,971 $ 10206,736 1977 4033,253 2,597,350 19735,903 1976 4,951 ,770 3.496,631 10455,139 1979 595399891 30653,791 1,886,100 1980 6,0820925 3,643,233 2,439,692 1981 5,814,133 4,780,478 1033,655 1982 6,557,815 5,286,338 192719477 1983 6,5210826 69255,114 266*712 1984 7435,318 69657,552 377,766 1985 8,049,892 796879105 3629787 Source; Administrative Services Department, City of Huntington Beach —78— EXHIBIT H i as Debt Service Requiremen4s Principal_ interest. Total Coverage j S 110,000 i 106,596 $ 216,596 5.6% ` 110,000 110,012 210,012 8.3% i 120,000 95,400 215,400 6.8% t 120,000 91,500 211,500 8.9� 130,000 87,405 217,405 11.2% 130,000 83,115 213,115 4.8% 1400000 780660 218,660 5.8% 150,000 739800 223,800 1.2% ( I MAN 68,700 218,700 1.7% 160,000 42,718 202,718 118% i _a u 79- L L �d� EXHIBIT I CITY OF HU11TIhGTC1 BEACH CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAD! DEPOSITS Last ten fiscal years Bank r, Number And Savings of and Loan Fiscal Building Percent Estimated Percent Deposits Percent Year Permits Change -Valuation Chaff (in 000's) Chan&e 1975-76 6,476 - $ 119,913,390 - $ 473.917 - 1976-77 6,939 7.1% 179,328,608 49.6% 607,297 28.1% 1977-78 6,187 (10.8%) 150,287,067 (16.2%) 7140203 17.6% 1978 79 4,457 (28.0%) 91 ,461 ,610 (39.1%) 856,340 19.9% 1979-80 4,012 (10.0%) 910859,447 .4X 955,539 11.6% 1980-81 39230 (19.5%) 108,794,271 18.4% 1,0459345 q•4% 1981-82 2,539 (21 .41,1) 58,298,912 (46.4%) 19134,324 8.5% 1982-83 2,776 9.3% 520458015 10.0% 19388,634 22.4% 1983-84 3,090 11.3% 110,747,369 111 .1% 198019778 29.8% 1984-85 3063 2.3% 1420369138 28.5% " # ,v #Bank and savings and loan deposits statistics for 1984-85 were not ~ avail.sble in time for this report. .,)urce: City of Huntington Beach, Development Services Department and the Findley Reports on California Financial Institutions. CITY OF HUNTIHGTON BEACH EXHIBIT J PRINCIPAL PhIVATE EMPLOYERS (Alphabetical Order) June 30, 1985 i American f:CE3e Wheel Company w Cw.ibrr Manufacturing Company I Joan Thomas Trucking Company General Telephone 1 Huntington Center Huntington Humana Hospital i .q McDonr.•+1 Douglas Mercury Savings �( Pacifica Hospital C I Rainbow Disposal Weiser Look j a . Note: Excludes Governmental Agencies -�J Source: Business License Division, City of Huntington Beach .z� H rrr� rr t� �1 1 i e� I 1 CITY OF HUNTINGTON PEACH INSURANCE FORCE r June 30, 1965 w r Cal-Surance - Broker r" Municipal. General A Auto Liability Excess Liability Excess Liability Excess Liability Helicopter Hull & Liability - 1984 Hughes i Helicopter Liability - 1963 & 1964 Bell 4713 Helipad Liability Watercraft Hull & Liability �- ' Garagekeeper's Legal Lability jRobert F'., Driver - Broker Fire, Ext., Coy., Flood, Earthquake .� Fire, Ext.c. Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake ^) Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Boiler and Machinery --� Public Official & Employee Faithful Performance Bonds Special Event Liability Robert E. French - Broker ' I i Medical. Stop Loss Employee Travel Accident Policy Fred S. James & Co. - Broker Excess Workers' Compensation � . Source; Administrative Services Department, City of Huntington Beach I -82- fe � J i ( ` EXHIBIT K ui i Annual Insurance Company Policy No. Expires Premium Planet Insurance Company KL5973189 04/01/86 ; 182,142 AssoQiated International XS1110325 04/01/86 75,000 Insurance Company First State Insurance Co. EL982452 04/01/86 659081 Chuu Insurance Company 7937-88-67 04/01/86 22,304 Americas Insurance Company HA-2-0277 04/01/86 51,096 Puritan Insurance Co. H-2-6761 04/01/86 7,563 �q Puritan Insurance Co, P-2548 04/01/86 5013 Maryland Casualty Co. MH160 04/01/86 3,700 Admiral Insurance Co. A84EG5102 12/15/85 4,038 Harbor Insurance Co. H1215795 06/05/86 64,000 Progressive Insurance Co. CF 46781 78 06/05/86 64,000 Hudson Insurance Co. H5010112 06/05/86 32,000 First State Insurance Co. GCO04874 06/05/86 20,000 Integrity Insurance Co. SP203358 06/05/86 20,000 Imperial Casualty NUA-CF'25053 06/05/86 200000 Utica Insurance Co. PMMOIM01907 06/05/86 30,000 Kemper Group Ins. Co. 3XN17455 04/01/86 80500 INA CP8 JO 1110985 07/01/86 8,762 Western World GLA185203 05/15/86 1,500 Republic Natiinal ':"386 05/01/86 62,850 Mas.aehussett� Indemnity TAB 1664 07/01/86 625 Employers' Reinsurance Co. C-35059 07/01/86 42,000 TOTAL S 7901,974 K 1 1 -83- f I . , EXHIBIT L '- CITY OF HUNTINGTON BEACH DEMOGRAPHIC STATISTICS City Population Percent Square Orange County as a Percent of r, Year Population YnK crease Viles Population County Population 1910 3.57 ;4,436 2.3% 1920 1,687 107.0% 3.57 61 ,375 2.7% 1930 3,690 118.0121 3.57 118,647 3.1% 1940 3,738 1.3% 3.57 1309760 2.8% 1950 5,158 38.0% 4.72 216,224 2.4% 1960 11,492 122.8% 23.47 703,925 1.6% 1970 1160400 912.9% 26.73 1 ,420,386 6.2% 1980 172,200 47.9% 27.20 1 ,931470 8.9% 1981 173093 1.7% 27.20 1072,724 8.8% 1982 175,714 1.3% 27.20 1,993031 8.8% 1983 178,706 . 1.8% 27.20 2,036 090 8.8% -1984 1799990 .7% 27.20 2,066,493 8.7% 1965 180,000 .0% 27.20 2,074026 8.7% Source: Department of Development Services, City of Huntington B-ach -8�;- EXHIBIT M CITY OF HUNTINGTON BEACH MISCELLANEOUS STATISTICS June 30, 1985 1 Year of incorporation 1909 Form of government Charter City — Council — City Administrator Area 28 square miles Papulation 180,000 Miles of -treets 362.1; miles Number of street lights 12,275 i Fire pr( tection: Number of stations 7 Number of firefighters and officers 126 Police protection: Number of stations 1 4 Number of police officers 190 Municipal department: Number of t:ustomers 44,897 Avenge daily consumption 25.0 mi:lion gallon4 Hiles of grater mains 430 r Sewers: 9 Senitsry sewers 270 miles .� Storm sewers 31 miles Recreation and culture: Number of parks 57 Acres of beach 43.3 Number of libraries 4 Number oT volum's 300,000 Total library circulation 1,700,000 Employees 1,309 Source: Administrative Services Department, City of Huntington Beach -85- I COMPREHENSIVE ANNUAL F114ANCIAL REPORT CITY OF HUNTINGTON BEACH, CALIFORNIA i FISCAL YEAR ENDED JUNE 30, 1986 PREPARED BY ADMINISTRATIVE SERVICES DEPARTMENT CITY OF HUNTINGTON BEACH 1 V/ t I !!!� CITY OF HUNTINGTON V 1CH COHPREHENSiVr ANNUAL FINANCIAL REPORT f ' Fiscal year ended June 30, 1986 -, t Table of Conten; a INTRODUCTORY SECTION I Page Number -- 'Cable of Contents i--iii Letter of Transmittal i>>-xxi Elected and Administrative Officialu xxii Organizational Chart xxii3 FINANCIAL SECTICH Schedule Accountants' Report 1 General purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Croups A-1 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types A-2 4 - 5 - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types A-3 6 - 8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 9 Combined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 10 Notes to Financial Statements 11 - 36 Financial Statements of Individual Funds and Account Groups: General Fund: Compnrative Balance Street B-1 37 Statement of Revenues, Expenditures and Changers it Fund 'Balance - Budget at.1 Actual B-2 38 I I -i- l_ I 'I aq r f , Page J� Schedule Number Special Revenue Funds, i Combining Balance Sheet C-1 39 - 40 Combining Statement of Revenues, Expenditures , and Changes in Fund Balances C-2 41 - 42 Combining Statement of Revenues, Expenditures r•+ and Changes in Fund Balances - Budget and Actual C-3 43 - 47 Debt Service Funds: Combining Balance Sheet D-1 48 - 49 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 50 - 51 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget And Actual D-3 52 - 54 Capital Projects Funds: .� Combining Balance Sheet E�l 55 - 56 Combining Statement of Revenues, Expenditures and Changes in Fund Balances E-2 57 - 58 Enterprise Funds: Combining Balance Sheet F-1 59 - 60 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 61 - 62 Combining Statement of Change9 in Financial Position F-3 63 - 64 Internal Service Funds: Combining Balance Sheet G-1 b5 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 66 Combining Statement of Changes in Financial Position G-3 67 Agency Fund: �- Statement of Changes in Assets and Liabilities H-1 68 General Fixed Assets Account urcup: Statement of General Fixed Assets I-1 69 Schedule of General Fixed Assets by Function And Activity I-2 70 Schedule of Changes in Fixed Assets by Function and ActivLty 1-3 71 General Long-Term Debt Account Group: Statement of Changes in General Long-Terra Debt J-1 72 -if- I I I 1 I i STATISTICAL SECTION Page Exhibit Humber 1 Governmental Fund Types ftcvenuej; by Source - Last Tsr► Fiscal Years A 73 - 74 Governmental Fund Types - Expenditures by Function - i Last Ton Fiscal Years B 75 - 77 Property Tax Levies and Collections - -� Last Tun Fiscal Years C 78 - 79 General 3ionded Debt Ration - Last Ten Fiscal Years D 80 - 81 Property Tax Pates - All Overlapping Governments - Last Ton Fiscal Years E 82 Computation of Direct and Overlapping Bonded Debt F 83 Computation of 'Legal Debt Margin G 84 Water Revenue Bond Coverage - Last Ten Fiscal Yeara if 85 - 86 Construction Activity and Bank and Savings and Loan Deposits - Last Te,, Fiscal _'ears 1 87 Principal Private Employers J 88 Ins�.rancc in Force K 89 - 90 Demographic Statistics L 91 Miscellaneous Statistics M 92 i vs, I I I t •,, CITY OF IHLIR6"�`11'Vt�"�'Ott�M!! BEACH 4' 2000 tw1AiN STREET CALIFORNIA 02648 I November 10, 1986 The Honorable Mayor and City Council Members -� City of Huntington Beach, California Mayor and 1':7oc!..:`lmembers: We are pleased to submit to ;you the Comprehensive Annual FlnancIal Report for the City of Huntington Beach for the fiscal year ending June 30, 1986. We believe the deta, as presented, is accurate in all material respects and presents tine financial activity of the City In a manner that will enable the reader of this report to fully understand the fiscal position of the City. The financial statements are prepared in accordance with the pronouncements of the Governmen. Aceiunting Standards Board (GASB) and include the report of our Independent certified public accountants, Diehl, Evans and Company. The report consists of three arts: E P I, c + 1. In4rociu�tory Section -� letter of transmittal, City Organrz4tionj•1 Chart and Identification of principal city cffieials. 2. FinancIal Section - combined financial statements, combining financial statements and footnote diselosu.es. 3. Statistical Section - pertinent financial and non-financial data that gives readers a broader perspective on our City. ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City's financial statements are prepared on the modified accrual basis for all governmental fund types except for the financial statements of the proprietary fund types which are prepared on the accrual basis. The City's system of internal control is designed to provide essurarce that City assets are safeguarded against loss or rnisuse. The City tins been careful to analyze specific internal controls to ensure that the cost ` implementing - a control does not exceed the expeeted benefits. The City Council adopts the annual budget by resolution and may amend or revise the budget at anytime. Budgetary control is rnaintalned rat the departmental level. A department head can trnnsfer funds within like object categories within the same department. The City ninistrator can transfer funds from one object category to anather without inereasi. the total budget of any department. Any changes to a total - departmental budget must be approved by the City Council. Tile City utilizes the encumbrance system of accounting where outstanding encunibrarrces are repo.ted as a reservation of fund balance at year-end in governmental fund types. These outstanding - encumbrances are then reappropriated into the •iew fiscal year. -iv- R REPORTING ENTITY AND ITS SERVICES Iluntingtor Beach is a full-service City, including public safety, parks and recreation, w+iter services, planning and zoning, public works and related administration. i This report includes the financial activity of certain separate legal entities. These entities aren 4 HUNTING'TON BEACIi PUBLIC FACILITIES CORPORATION - This entity was ormed in 1970 to issue bonds to finance the construction of the Civic Center ' and Central Library complexes. REDEVELOPMENT AGE.4CY OF THE CITY OF HUNTINGTON BEACH This entity was formed in 1967 to facilitate the redevelopment of certain areas of the City. The City Council serves as the governing board of the Redevelopment j Agency. PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH This entity was formed in 1967 to issue bonds tofinance' the construction of off-street parking facilities and then leas: these to the City. The Parking Authority's governing body is the City Council. WEST ORANGE. COUNTY WATER BOARD Huntington Beach serves as fiscal agent for this entity which provides foi the construction, operation and maintenance of a water distribution system to various cities. The activity of this entity is recorded in the Water Utility funu. There are many other governmental agencies, including the County of Orange, the Huntington Beach and Ocean View Unified School Districts, as well as the Coast ^� Coirmunit) College District which provide services within the City. 'These entities have independently elected governing boards and are not a compot.ent unit of the City of Huntington Beach and their financial information is not included in this repo-t. -� Component unit financial reports have also been prepared for the Huntington Beach Public Facilities Corporation and the Redevelopment Agency of the City of Huntington Beach. These reports show the finvnelal activity of these entities on a "stand-alone" basis. Copies of l+:ese veports sire available from this office. GENERAL GOVERNMENT FUNCTIONS General governmental functions include the operations of the General, Special Revenue, Debt Service and Capital Projects Funds. Below Is an analysis of general governmental revenues which increased by $3,544,376 or 4.9% over the prior year and a explanation of the fluctuations: - Percent Amount Amount Change 85/86 84/85 from 84/85 Property Taxes 19,427,644 17,638,321 10.1 % - Other Taxes: 27,622,057 25,923,113 6.6% Licenses and Pe.snits 4,427,014 5,963,411 (25.h% _ Fines, Forfeitures & Penalties 1,973,670 2,093,975 (5.7%) From Use of bloney & Property 5,718,196 5,895,407 0.0%) From Other Agencies 14,1439061 12,888,344 9.7% Chartres for Current Service 2,5259401 2,261,424 11.7 Other 7351,184 364,156 101.2% TOtaI "7¢�U 27 . 73 028 151 4.9 + Property Taxes: The increase in proparty tag revenues is due to normal r.=assessments of property under the guidelines of Article 13-A of the California Constitution and new residential and commercial development. IOther Taxes - Normal increases. Licenses and Permits: Fiscal year 1984/85 was an exceptional year for new residential and coinraurcial development. The decrease is more the result of a leveling off of new development. Fines, Forfeitures and Penalties: A small decrease due to change In law resulting In lesser amounts being forwarded to the City from the County. I , From Use of Money and Property: The slight decrease is due largely to lower interest rates. From Other Agencies: ]'Normal increases. .� Charges for Current Service - Normal Incri-ises. Other Revenue: increases due to more miscellaneous receipts such as miscellaneous property damage reimbursements. Below is an analysis of general governmental expenditures which increased by 109780,128 or 15.9% for the year and u comparison with the prior year foi!owed by an explanation of -, significant fluctuations: Percent Amount Amount Change 85/86 84/85 from 84/85 City Council 90,029 128,635 (30.0%) City Administ^ator 6290890 730p966 (13.8%) City 'Measurer 286,648 267,822 7.0% City Attorney 6440685 806,146 (20.0%) City Clerk 1639608 1840834 (16.0%) Administrative Services 2,600,737 2,558,796 1.6% Developme,it Services 1,773,596 1,759,542 .1 % Fire 10,251,710 9,4939834 8.0% Police 18,744,618 179122,642 9.11% Community Services 5,668,499 50286,948 7.2% Public Works 15,045,519 13,651,510 10.2 6 Housing & t;ommunity Dev. 2,051,949 966,3K4 112.3% Non-Depart mental 61795,596 49867,215 29.4% Capital Outlay 11,791,251 7,873,719 49.6% Debt Service 1,846,950 1,896,104 (3.2%) Total $78.385.285 67.605.157 15.9$ The Inrge increase in total henernt governmental expenditures is due to increased activity - :n the Redevelopment Agency. hinjor purchuses of property are seeded to carry out the City's redevelopment plans and the City was able to obtain a better price on certain property by purchasing the land this yeer rather than waiting for future years. The City utilized a cost allocation plan to allocate tlW redevelopment related cWs of the various -VI- I l city departments. The total of these 0locations was $1,259,814. These allocations caused the decreases in the City Council, City Administrator, City Attorney and City Clerk's departments. This also caused the smaller than expected increases in the Ac' • 'Witrative Services and Development Services departments. PROPRIETARY FUNDS The City operat(id three enterprise funds and two internal service funds during the year. Enterprise funds include the Water Utility fund, the Meadowlark Golf Course fund and the Emerald cove (lousing fund and are supported primarily through user charges to the Iiublic. 'rite internal service funds include the Self-Insurance fund and the Equipment Repiacei.trnt fund and are supported by charges to user departments within the city, r Shown below is a table comparing the. performance of the City's enterprise funds to the prior year. A rate increase was enacted in April, 198t; which should enable the Water Utility fund to break even in fiscal year 1986/87. Meadowlark Emerald Cove Water Utility Golf Course Housing 1986 1985 1986 1985 1986 1985 Operating Revenues 8,172,637 7,508,521 21C,437 209,425 5759826 168,525 Operating Income (Loss) (1$761,013) (1,368,003) 185,850 168,483 265,509 43,033 r Not Income (Loss) (1,336,313) (882,781) 105,213 75,826 26,484 120,715 Income Available r for Debt Service (169,063) 362,782 263,502 244,143 502,686 120,715 Debt Service 200,622 2029718 150,000 150,000 437,000 N/A Debt Service Coverage N/A 1.79 1.76 1.40 1.15 N/A Below is a table comparing the performance or the City's internal set vice funds to the prior year. Self Insurance Equipment Replacement 19P6 1985 1986 1985 Operating Revenues 5,54:1,657 2,352,842 1,658,402 477,305 Operating income (235,903) (I,947,394) 1,498,235 3850853 Net Eticomo 158,722 (1,572,809) 1,826,693 601,869 Cloth of th.:! City's internal service fund showed a net Income tnis year. The large net income in the equipment replacement fund is intended to help that fund build up a large cash balnnve for anticipated major equipment replacement needs in the next few years. - 1 1 FUND EI;UITIES Total fund equities increased $6,6310109 or 9.8 8 as shown in the table below., Total Fund Total Fund Percent "! Equity 85/86 Equity 84/85 Increase (Decrease) I Governmental Fund Tapes General $12,430,480 $119646,077 6.7t Special Itevenue 149741,476 14,906,948 (1.1 %) Debt Service 6,864,970 5,8921055 1614% Capitid elrojects w 2,622,043 895,906 182.78 Total $361658,969 $33,341,786 9.9$ Propr.ietary Fund Wipes w, Enterprise 34;829,635 34,001,424 2.4 % Internal Service 21948,422 363,007 684.7 .,r Total $37,678,057 $34,364.131 9.6% Crand Tctal 74.337.026 l 2^L The equity increases In the governmental fund types show the financial health of the City's general operations. The large equity Increase in the pt,oprietiry fund types Is due to the large net Income for the Equipment Replacement fund. AGENCY FUNDS Total assets and liabilities for the City's Agency funds Increased by $1,549,805 or 27.0% to $7,281,842. This is due to increased employee participation In the City's deferred compensation plan which Is the only Agency fund maintained. DEBT ADMINISTRATION S-•-nmarized below is the City's outstanding lonT-term debt at June 30, 1986. Description Amount Outstanding TGeneral Obligation [fonds � 1070 Park Donds 3,165,000 Revenue ►fonds 1963 Water Kevenue Bonds 1,053,500 Pnrlcing Authority Bonds 1,060,000 lledevolopment Agency Certificates of Participation Emerald Cove Housing Project 4,600,000 Leasehold Mortgage ifonds HBk'1 C Civic Center - 1st Issue 7,440,000 11813FC Library- 2nd Issue 304100000 -viii- 0 Notes Payable Mendowlark Golf Course 1,781,261 r. San Joaquin Reservoir 321,354 State Coastal Conservancy 425,000 Other Compensated Absences (Vacation/Sick heave) 3,2779069 Redevelopment Agency Debt 1108259857 Self Insurance Claims 59625,000 A further analysis of the City's bonded indebtedness is included in notes 10 and 11 to t".? financial statements. CASH MANAGEMENT The City 'Treasurer Is responsible for investing available cash in investments allowable by law. These Include certificates of deposit which are either government insueed or collateralized, &overnment securities including SBA loans and Treasury Notes, and the State Treasurer's Local Agency Investment Fund. The cash management system of the City is designed to monitor and forecast revenues and expenditures to insure the investment of monies to the fullest extent possible. The criteria for selecting investments are, in order of priority; a) safety, b) liquidity, c) yield. The average total of non-restricted cash and term investments during the year was $37,232,304, which earned interest of $3,421,650, for a return of 9.19%. At June 30, 1986, 83% of the City's total investments matured in less than 365 drays. The California Government Code requires the City Treasurer to prepare an annual ~, statement of investment policy and monthly report containing specific information regarding the City's investment policy. Tile City Treasurer has complied with this law. FIXED ASSETS The general fixed assets of the City are used for general governmental functions and do not : Include the fixed assets of enterprise and internal service funds. At June 30, 1986, the City's general fixed assets amounted to $72,937,969. This amount represents the original cost of the assets and is considerably less than their present value. Depreciation of general -� fixed assets is not recognized. The City utilizes an Equipment Replacement fund. This fund is operated as an internal service fund and all equipment purchased which replaces existing equipment is recorded in this fund, and leased to user departments. General fired assets are increasing at a lesser rate because much of the City's new equipment purchases are capitalized in the Equipment Replacement fund and not recorded � as general i fixed assets. PROSPECTS FOR THE FUTURE Huntington Beach has always attracted people, and industry because of a balmy clean-air climate, coastal location and strong local economy. However, we are facing many of the same concerns that other cities are facing. Federal aid to cities is being phased out. We have planned for this rev^nue loss, but this makes it imperative that our other revenue -r t � sources reinain stable. Tire "deep pockets" insurance crisis has had profound effects on the •, way cities across the country do business. During the year Huntington Beach became one f of the many local governments that has had to go v,ithout liability Insurance because of the rising costs of premiums. We are hopeful that the passage of Proposition 51 in June, 1986 ( will ease this situation and bring down the cost of liability insurance premiums. Within a ft w years, our nanual expenditures inay approach the limit allowed under Article 131) of the California Constitution (the Gann Limit). We inust search for alternatives to deal with this situation. We are very confident that we will meet these challenges. Citizens of Huntington Beach have come to expect the best from their municipal government. We will not disappoint them. Redevelopment of older areas of our City will continue at a rapid pace. Construction Is scheduled to begin soon in the downtown area. The "new downtown" will provide new snurces of revenue for the City and will be an ents:-tainment mecca for its citizens. DEFEASANCE OF PUBLIC FACILITITY CORPORATION BONDS .., In July 198,i,#subsequent to yecr-end, the Huntington Beach Civic Improvement Corporation j was formed which provided for the defeasarloe of the Huntington Beach Public Facilities ' Corporation Leasehold Mortgage Bonds - First Issue, totallitig $7,010,000. The Civic Improvement Corporation issued $20,000,000 of Certificates of Particioation to provide for -, this defea&ince. With the remaining proceeds totaling approximately $11,600,000, the City plans to construct a multi-level parking structure in the Alain/Pier Redevelopment Project Area. The dramatic drop in Interest rates made this possible. Aloody's Investors Service gave this debt issue a rating of "A" which Is the highest rating the City ever received on a debt issue. In addition, Moody's increased the rating on our 1972 Non-Profit Corporation Bonds from "Ban-I" to "A" and our General Obligation rating from "A" to "AA". It is highly unusual for a City to receive tin upgrade in credit ratings in this era of financial volatility and reduced public resources. 71tis shows that the financial community has confidence in the creditworthiness and stability of our City. SINGLE AUDIT In accordance with the Single A edit Act of 1984, the City's grant programs which utilize Federal funds, either directly or passed through from state or county agencies, have been subjected to audit requirements of the Office of Management and Budget. This included tests of compliance with Federal laws and regulations and an organization-wide examinatio,i of financial operations. Tile results of this expanded audit of grant activity are include.] under separate cover. Copies of this report are available from this office. FINANCIAL REPORTING CERTIFICATES 'file City has prepared an easily readable and efficiently organized Comprehensive Annual Financial Report that conforms to industry Standards. For last yearts report, the City received a "Certificate of Award for Outstanding Financial Reporting" from the California Society of Municipal Finance Officers (CSMFO). This year, the City is stibmit.ing its report to both the CShiFO and the Government Finance OffIcer's Association (GFOA) In i hopes of tilso receiving the GFOA's "Certificate of Achievement for Excellence in Financial Reporting" along with the CSMFO award. It is our belief that this report conforms to these high standards. N� + 1 � I I I I ACKNOWLEDGEMENTS r-- We wish to thank the City Council and the various City departments for conducting the ;fiscal affairs of this City in a responsible and progressive manner. We would also like to ' Ounk the members of the Accounting Division, especially Wayne Lee, Accounting 'Jfficer zin(; Robert Sedink, Principal Accountant, for their work in the preparation of this report. DANrr. VILL> LZA Director o Franc 11 ROBERT J. . L r Deputy CIty Ad inistrator Administrative Services Department DTV:skd r� I r { -Xt- t)t)t)4,) It ... mom �Z CITY OF H UNTINGTON BEACH PRINCIPAL CITY OFFICIALS IP CITY COUNCIL Robert P. Manoic, Jr. Mayor Ruth E. Finley Mayor Pro Teat R»th Bailey Councilperson Jack Kelly Councilperson Peter Green Councilperson Donald A. MacAllister Councilperson John A. Thomas Councilperson x OTHER LLECTED OFFICIALS F+ Warren G. hall tatty Treasurer I Gail Hutton City Attorney Alicia M. Wentworth City Clerk ADMINISTRATIVE OFFICIALS Charles W. Thompson City Administrator Robert J. Franz Deputy City Administrator Douglas LaBelle Deputy City Administrator .lames Palin Development Services Director Paul E. Cook Director of Public Yorks Melvin Bowman Community Services Director Raymond C. Picard Fire Chief Earle W. Robitnille Police Chief ^ PEOPLE Of 'r CITY CDltNCll i Huntington Beach ORGANIZATIONAL CHART CITY we AOMIMtS7ItATOR CITY CITY TREASURER ATTORNEY CiTYCLERK HL'ti R4L 1(rV f��CH BUSINZSS LICENSE i i'CIICF FIRE PUBLIC WORKS FE) VELOEPMEN7 RfJMlNISTRATIKE COMMUhiTY w SERVICES I SERVICES SERVICES 1 UNIFORM FIRE DIVISION PREVENTIONENGINEERING 1 PLANINING PERSONNEL LIBRARY I I RECREATION a ADMIN. t REAL SERVICES OPERATIONS WATER L J BUILDING PROPERTY HUMAN RESOURCES i I INVESTIGATION NA1110E B HOUStftr F FIEACH DIVISION t LANDSCAPE REDEVELOPMERT SPECIAL INFORMATION OPERATION 5 MA'gTENAHCE SYSTEMS i INSURANCE a BENEvITS ► FD"CW. ENCTIOa 1 ..i i i r I � i I I pv DIEHLr EVANS AND COMPANY A PARTNCAS•.P(NCLUOIAG ACE OUN FANG, CQRPURADONS I •R"G PETCRS,CPA CCRTIFIC0 PUBLIC ACCOUNTANTS orH[w orrc(s .r •OQNAtDH /ZT`RSO4 CPA 191U NOgTN BUSN STpCCT JOSS ROOFIY(Lr St%LL( •AOMAItl ( f.ALIAf".C PA ,q • .►[r(R StHCRC-k C VA SANTA ANA, CALIFORNIA 92706-2094 CAJILSBAD. CAu/Op MIA PZC.09.2489 •AOONCr R WDANdL.( PA (e.►( 72►-a2,0] I n41 5�? •�453 •RALPH H WC(NTIrAUR I PA IJU W9161 WOO;;WANU •VCNUC •rH(ur H HONAArR C PA C5COr/0100. CALtranktA 920=5•9990 •TIIOMAS M nRtawsal CPA ..� COWARO GROOS.r C PA (eJr ru•a• ONE CIVi: PLAZA. AL((TZ ads LLUS C O.LHL.C P.A.I(+CTIRC01 , NCWPORT OLAGH,CA:I/CAN14 92060 ARrN O C,"S.COA (RCT(RCOI Septeaber 5, 1986 1)CAI eA.•Eris• ACCOUNTANTS' REPORT City Council City of Huntington Beach Huntington Beach, California We have examined the general purpose financial statements of the City of Huntington Beach, as of and for the year ended June 30, 1986, as listed in the table of contents. Our examination was mart in accordance With generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the general purpose financial statements referred to above present fairly the financial position of the City of Huntington Beach at June 30, 1986, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that .of the preceding year. Our examination was made for the purpose of forming an opinion an the general i purpose financial statements taken as a whole. The combining, individual fund and individual account group financial statements are presented for purposes of additional anslysin and are• not a required part of the general purpose financial statements of the City of Huntington Beach. Such information has been subjected to the auditing procedures applied in the examination of the: general purpose financial statements and, in our opinion, is fairly utated in all material respects in relation to the general purpose financial statements taken as a whole. The other data included in the Statistical Section is presented primarily for supplemental analysis purposes. The scope of our examination did not include the statistical information and we do not express an opinion or any other form of assurance concerning it. y 2 -1- 1 '1 i CITY OF HUNTINGTON BEACH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1986 Governmental Fund Types Special Debt Capital ASSETS G:.neral Revenue Service Projects Cash and investments (Notes le and 3) $ 9,401,307 $ 13,518,325 $ 543,324 $ 2,002,544 Coat: with fiscal agent (Note 3) - - 6,233,240 782,238 Taxes receivable (Note lg) 486,185 - 13,751 - Accounts receivable 344,429 - - 6,509 Interest receivable 51,763 63,038 74,655 10,89G Due from other funds (Note 8) 6,786,235 5,124,605 - - Due from other agencies 150,218 626,961 - - Deposits and other assets 179,200 - - - Property, plant and equipment, net (Notes Id and 12) - - - - Amount available in debt service funds - - - - Amount to be provided for payment of long-terra debt - - TOTAL ASSETS $ 172401,337 $19,334,929 $ 6 864,970 2,802,181 ' LIABILITIES AND FUND EQUITY 1,14BILITIESs - Accounts payable $ 1,180,524 $ 447,260 $ $ 147,155 Accrued payroll 1,933,167 17,663 - 7,983 Deposits 558,628 66 408 - 25,000 Due to other funds (Notes 8 & 10) - - - - Deferred compensation (Note 4) Claims payable (Note 7) - - - - Deferred revenue (Note 5) 1,298,538 4,060,122 - - Accrued interest payable - - - - Bonds payable (Notes 10 and 11) - - - - Other long-term debt (Notes 10 and 11) - - - - Compensated absences payable (Notes le, 10 and 11) - TOTAL LIABILITIES 4,970,857 4,591,453 - 180,138 FUND EQUITY: Contributed capital - - - - Investment is general fixed assets - - - - Retained earnings: Reserved (Note 13) - - - - Unreserved (deficits) - - - - Fund Balances: Reserved (Note 13) 8,832,663 2,928,693 6,864,970 2,622,043 v Unreserved% Designated (Note 13) - 2,877,449 - - Undesignated 3,597,817 _ 8,935,334 - Total retained earnings/ fund balances 12,k30,480 14.741.476 6,864,970 2,622,043 TOTAL FUND EQUITX 12,430,480 14,741,476 61864,970 2,622,043 TOTAL LIABILITIES AND FUND EQUITX $ 17,401,337 19,332i929 6 W.,970 $ 2,802,181 C� See accountants' report and notes to financial ntatementa. -2- • j SCHEDULE A-1 i Account Groups j aw Proprietary Fund Types Fiduciary General General Totals Internal Fund Type Fixed bong-Term (Memorandum Only) Entetprise Service Agency Assets Debt 1986 1985 _ $ 5,699,078 $6,678,167 S - S - $ - $ 37,842,745 $ 42,366,651 1,492,370 - 7,134,577 - - 15,642,425 7,846,335 - - - - - 499,936 482,882 1 ,283,623 14,645 - - - 1,649,206 2,677,640 33,278 32,109 - - - 265,733 358,692 24,426 - - - - 11,937,268 6,690,523 - - - - 777,179 1,335,656 - - 147,265 - - 326,465 772,201 36,011.,17i 1,812,012 - 72,93;",969 - 110,761,157 102,501,938 - - - 6,864,970 6,864,970 5,892,855 - - - 23,738,756 23,738*756 19.516,496 $44,543,953 $8,536,933 $7,281,842 $72,93:,969 $30.603,726 $210�305,840 $190.441.869 $ 944,235 $ 29,048 $ - $ - $ - $ 2,748,222 $ 2,575,017 62,428 34,463 - - - 2,055,704 1,686,271 755,342 - - - - 1,405,378 1,536,303 111 ,411 - - - 11,825,857 11,937,268 6,690,523 - - 7 ,253,342 - - 7,253,342 5,703,237 5,625,000 - - - 5,625,000 5,186,000 - - - - 5,358,660 4,403,226 84,544 - - - - 84,544 90,405 1,053,000 - - - 15,075,000 16,128,000 17,146,000 6,600,249 - 28,500 - 425,000 7,053,749 7,221,260 103,109 - - 3,277,869 3.380,978 3,088,630 9714,3)8 51688.511 722816842 - 30,603,726 6360300845 55.326,872 34,230,204 2,500,000 - - - 36,730,204 34,935,226 - - - 72,93►,969 - 72,937,969 66,617,843 94,231 - - - - 872,231 570,449 505,700 348,422 - - - 75,622 (350,307) - - - - - 21,248,369 15,265,318 ' - - - - - 2,877,449 1,150,431 - - 12,533,151 16,906,037 599,431 348,422 - - - 37,606,822 32,770,691 34,829,625 2`848,422 - 72,937,969 - 147,274,995 1351114,997 $44,543,953 $8,536, 33 $7,281 ,842 7�S 2,937,969 $30,603,726 $210,305,;40 $190,1.411869 vi -3- CITY OF HUNTINGTON BEACH ^OHBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE:; ALI, GOVERNMENTAL FUND TYPES For the year ended June 30, 19►i6 General Fund REVENUESs Property taxes (Note IS) 8 18,456,192 Other taxes 27,622,057 Licenseb and permits 3,042,450 .. Fines, forfeitures and penalties 1,973,670 From use of money and property 3,782,431 From otter agencies 7,125,470 Chartres for current services 2,525,401 Other 735,+84 70TAL REVENUI:S f5,263,155 EXPENDITURES: Current: City Council 90,029 City Administrator 488,064 City Treasurer 286,648 , City Attorney 644,685 City Clerk 163,608 .-- Administrative services 2,600,737 Development services 1,773,596 Fire 10,236,204 r Police 18,729,315 Housing and Community Development - Community services 5,585,738 Public works 14,911,530 Non-departmental 6,795,596 Capital •3utlay 2,186,520 Debt Service (Note 10): .- Principal - Intere;t and fiscal charges TOTAL EXPENDITURES 64,492,270 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 770,885 OTHER FINANCING SOURCES (USES)s Operating transft-re in 1,221,368 Advances from Gei,ara1 Fund (Note: 10) - Proceeds of long-term debt (Note 10) 21.6,100 Operating transfers out (1,423,950) TOTAL OTHER FINANCING SOURCES (USES) 13,518 e EXCV81; OF IIEVFNUE!; AND OTHER SOURCES OVER (UNDER) EXPENUITiIRES AND OTHER USES 784,403 FUND BALAW.E - BEGINNING Or THE YEAR 11,646,077 Prior perisid adjustments - Residual equity transfers in - Reaidual equity transfers out - FUND DALA WE - END OF YEAR $ 12,430,480 St:e accountants' report and notes to financial statements. 4 13 � -4- ._ I i SCHEDULE A-2 I f 1 special Debt Capital Totals Revenue Service Projects (Memorandum Only) w Funda Funde Funds 1986 1985 i 870,134 $ 101,318 $ 19,427,644 $ 17,638,321 - - - 27,622,057 25,923,113 1,384,564 - - 4,427,014 5,963,411 - - - 1,973,670 2,093,975 1,246,023 527,606 162,136 5,718,196 5,895,407 .� 7,017,591 - - 14,143,061 12,888,344 - - - 2,525,401 2*261,424 - - r - 735,484 364,156 w 9 JO9.178 1,397,740 263,454 76 572,517 73,028,151 I 90,029 128,635 % 141 ,826 - - 629,890 730,966 - - - 286,648 267,882 - 644,685 806,146 -" - - - 163,608 194,834 2,600,737 2,558,796 - - - 1,773,596 1,759,542 15,506 - - 10,251,710 9,493,834 15,303 - - 18,744,618 17,122,642 342,545 - 1,709,404 2,051 ,949 966,384 82,761 - - 5,668,499 5,286,948 133,989 - - 15,045,519 13,651,510 - - - 6,795,596 4,867,215 9,085,3i2 - 50,379 11,791,251 7,87.31,719 960,0(,0 - 560,000 960,000 886,950 - 886,950 936,104 9.817,232 1t846,95:�. _ 2,228,783 78,3851285 _ 67,605,157 (169,104) (449.210) (1,9(•5,329) (1,812,758) (5,422,994) ..j 2,000,0-)0 1 ,423,950 2,625 4,647,943 4,892,791 - - 4,913,841 4,913,841 237,336 - - 216,100 - (1,996,3a8) (2L625) (1,225J 000) (41647,943) (41892,791) 3,612 1 L41-1,325 - 3,691,466 5,129,941 237,336 1 .j (165,4 '2) 972,115 1 ,726,12.7 3,31;,183 5,660,330 14,90h,9-W 5,892,855 895,906 33,341 ,786 38,434,217 - - - (3,460,462) 882,437 1 (8,174,136) $ 14,741,4,h $ 6,864 ,97U 5 7.,622,U4s $ 30:558,969 S 33,341 , 786 ��` -5- CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL GENSU. L, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 30, 1986 General Fund Variance - Favorable Beset Actual (Unfavorable) REVENUESs Property taxes (Note lg) $ 20,003,000 $ 18,456,192 $ (1,546,808) Other tares 26,490,000 27,622,057 1,132,057 Licenses and permits 3,182,500 3,042,450 (140,050) Fines, forfeitures and penalties 2,131,000 1 ,973,670 (157,330) From use of money and property 4,213,200 3,782,431 (430,769) From other agencies 6,107,900 7,125,470 1,017,570 Charges for current services 2,509,400 2,525,401 16,001 Other 876,500 7351484 (141,016) TOTAL REVENUES 65,513,500 65,263,155 (250,345) EXPENDITURES% Current: City Council 88,708 90,029 (1,321) City Administrator 534 ,314 488,064 46,250 City Treasurer 298,037 286,648 11,389 City Attorney 645,475 644,685 790 city Clerk 143,625 163,608 (19,983)16 - Administrative :services 2,718,975 2,600,737 118,238 Development services 1,869,636 1,773,596 96,090 Fire 10,102,772 10,236,204 (133,432) Police 19,24.1,487 18,729,315 512,172 Housing and Community Development - - - Community Services 5,917,207 5,585,738 331,469 _ Public Works 15,766,862 14,911,530 855,332 Non-departmental 8,091,928 6,795,596 1,296,332 Capital outlay 2,295,469 2,186,520 108,949 Debt Service (Note 10): Principal - - - jInterest and fiscal charges - - TOTAL EXPENDITURES 67,714,545 64,492,270 3,222,275 EAC.ESS OF REVENUES OVER (UNDER) EXPENDITURES (21201z045) 770,d85 2,971,930 OTHER FINANCING SOURCES (USES): Operating transfers in ? ,200,000 1,221,368 21,368 Proceeds from long-terra debt (Note 10) 216,100 216,100 - Operatin„ transfers: our (1,423,950) (1,423,950) - TUTAL OTHER FINANCING SOURCES (U::ES) '71050) 13,518 21,368 EXCESS Of: REVENUES AND OTHER SOURCES OVEI (UNDER) KXIIENDITURES AND OTHER USES (2,205,895) 784,',03 2,993,298 FUND BALANt;FS - BEGINNING OF THE YEAR 11,646,077 11,646,077 - - FUND BALA1h:ES - END OF YEAR $ 91437LI82 $ 121430,480 $ 2,993,298 See accouni.antr: ' repi -t wid notes to financial star.ements. -6- SCHEDULE A-3 1 � Special Revenue Funds Debt Service Funds Variance - Variance - Favorable Favorable Btsdget Actual (Unfavorable) Budget Actual (Unfavorable) 860,400 $ 870,134 $ 9,734 2,643,000 1,209,130 (1,433,870) - - I 778,000 1,246,023 - 468,023 714,000 527,606 (186,394) 6,731,000 7,017,591 286,591 193,090 175,434 (17,56C - - - 10,345,000 9,648,178 - (696,822) 1,574,400 _1,3971740 (176,660) .� 126,379 141,826 (15,447'• - - - ». 15,20 15,506 (237" - - - 10,212 15,303 (5,021" - - - 143,768 82,761 61,007 205,4)3 342,545 (137,052) - - - 1,643,612 133,989 1,509,673 - - - ' 17,087,813 9,085,352 8,02,482 - - - - - - 960,000 960,000 - ! - _ w_ - - 896,706 886.950 9,756 19,232,616 91817,282 9,415,355 1 ,856,704 1t846,950 9,75b (8,847,636) (169,104) (8,718,533) (282,306) (449,210) (166,904) .) 2,025,000 2,000.000 (25,000, 1 ,423,950 1 ,423,950 i _( 1 ,975 000) 1 ,9rG,W) (21,369! (2,625) (2,625) 50,0O0 3 ,63:1 (G6,369) _11421,325 1,421 ,325 (8,837,616) (165,472) 8 ,67,',1b4 1 ,139,019 972,;15 (166,904) 14,90tt,9 -8 14,90b,948 _ - 5 ,d92,855 5,89216,5 - $ 6,069,3j � 14,741,476 $ 81672,164 7 031 874 S 6,864,970 $(166,904) E� (CONTINUED) SCHEDULE A-3 rr CITY OF HUNTINGTON BEACH COMBINED STATEMEN'r OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES ,.. i For the year ended June 30, 1986 Totals (Memoranduw OnIX) Variance - Favorable Budget Actual (Unfavorable) REVENUES: Property taxes (Note lg) $ 20,863,400 $ 19,326,326 $ (1,537,074) Other taxes 26,490,000 27,622,057 1,132,057 Licenses and permits 4,065,500 4,427,014 361,514 Fines, forfeitures and penalties 2,131,000 1 ,972,670 (157,330) From use of money and property 7,638,200 5,556,060 (2,082,140) From other agencies ,. 11,363,900 14,143,061 2,779,161 r Charges for current services ::,509,400 2,525,401 16,001 Other 876,500 735,484 (141j016) TOTAL REVENUES 75,937,900 76,309,073 371,173 EXPENDITURES: Current: City C,:uncil 88,708 90,029 (1,321) City Adminstrator 660,693 629,890 30,803 City Treasurer 298,037 286,648 11,389 City Attorney 645,475 644,685 790 City Clerk 143,625 163,608 (19,983) Administrative services 2,718,975 2,600,737 118,238 Development services 1,869,686 1,773,596 96,090 Fire 10,118,041 10,251,710 (133,669) Police 19,251,769 18,744,618 507,151 Housing; and Community Development 205,493 342,545 (137,052) Community services 6,060,975 5,668,499 392,476 Public works 17,410,474 15,045,519 2,364,955 Debt service, principal 8,091,928 6,795,596 1,296,332 Capital outlay 19,383,302 11,271,872 8,111,430 Debt Serk-ice (Note 10): Principal 960,000 960,000 - Intereut and fiscal charges 896,706 886,950 9,756 Tr►'PAL EXPENDITURES 88,803,887 76,156,502 12,647,385 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (12,865,987) 152,571 13,018,558 OTHER FINANCING, SOURCES (USES): Operating; transfers in 4,648,950 4,645,318 (3,632) Proceeds from long-term debt (Note 10) 216,000 216,100 Opet•atinl; tranafers out (3,401,575) (3,422,943) (21,368) TOTAL OTIIER F I NANO I NG SOURCES (USES) 1,463,475 1,438,475 (25,000) EXCESS OF bEVENUES AND OTHER SOURCES OVER (UNDER) tXPENDITURES AND OTHER USES (11 ,402,512) 1 ,591,046 12,993,558 FUND HALAWES - BEGINNING OF THE YEAR 32,445,880 32,445,880 - FUND bAI.AU(FS - END OF YEAR $ 21 ,043,368 $ 34,036,926 $ 12,993,558 See accountants' report and mites to finaicial statements. SCHEDULE A-4 CITY OF HUNTINGTON BEACH f COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANCES i IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES I For the year ended June 30, 1986 1 ' Totals Internal (Memorandum Only) '^ Enter rise Service 1986 1985 OPERATING REVENUESs - Charges for services $ $ 7,202,059 S 7,202,059 $ 3,930,147 Water sales 7,912,216 - 7,912,216 7,310,579 Rentals 781,077 - 781,077 377,950 Other 273,607 - 273j607 197,942 i TOTAL OPERATING i REVENUES 8,966,900 7,202,059 16,168,959 11,816,618 -� OPERATING EXPENSES: Water purchases 2,881 ,891 2,881,891 1,736,542 Administration 363,533 1,723,510 2,087,043 1,697,666 Ergineering 159 .919 - 159,919 203,826 Production 2,311 ,984 - 2,311,984 2,322,513 Maintenance 1,544.692 1,544,692 1,609,019 hater Meters 542,825 - 542,825 520,017 Contribution to general fund in lieu of taxes 1,186,132 - 1,186,132 1,097,165 Workers compensation claims - 934,635 934,635 1,335,139 Employee medical claims - 1,792,779 1,792,779 1,780,428 Liability claims - 1,380,738 1,380,738 977,958 Depreciation (Nnte Id) 11285,578 ;08�,065 1,393,643 1,254,373 TOTAL OPERATING EXPENSES 10,276,554 51939,727 16.216,281 144534.646 OPERATING INCOME (LUSS) (1,309,654) 1,262,332 (47,322) (21718 4028) _. NON-OPERATING REVENUES (EXPLNSES)s — Interest income 681,201 723,083 1,404,284 1,244,372 � Interest expense (629,251) - (629,251) (1831524) t TOTAL NON-OPERATING RAVF.NUES (EXPENSES) 51,950 7236083 775,033 _1,060,848 1 •J y NET INCOME (LOSS) (1 ,257, 704) 1,985,415 727,711 (1,657,180) RETAINED EARNINGS (11EFICIT) - BEG1NN1N(; OF YEAR 1 ,065,898 ( 1 ,636,993) (571,095) 1,086,085 PRIOR PERIOD ADJUSTMENT (NOTE 15) 79I ,237 - 791,237 - I j RETAINED EAkN1NGS (DEFICIT) - ' END OF YEAR $ 599,431 $ 348,422 $ 947.853 $ (571,095) i See accountants' report and uutes to financial statements. I SCHEDULE A-5 st, CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF CHANCES IN FINAPCIAL POSITION - ALL PROPRIETARY FUND TYPES For the year ended June 30, 1986 . i Totals Internal (Memorandum Only) Enterprise Service .._ 10,86 - 1985 SOURCES 01' WORKING CAPITAL: r` Operations: Net less $(I,257,704)$ 1 ,985,415 $ 727,711 $0,657,180) Items not requiring working Rw capital: Depreciation 1i285,578 1089065 1,393,643 10254*373 Working capital provided (used) by operations 27,874 2,093,480 2,121 ,354 (402,807) Increase in self-insurance claims payable - - - 719,000 i Sale of plant, property and equipment 2,770 439,000 441,770 - Contributions 1 ,294,978 503,000 1,794,978 4,130,022 Sale of Certificates of Participation - - - 4,600,000 Reduction in restricted assets 34,005 - 34,005 - TOTAL SOURCES OF WORKING CAPITAL 1 ,359,627 3,032,480 4,3923107 9,046,215 USES OF WORKING CAPITAL: Increase in property, plant and equipment : ,636,756 1,696,750 3,335,506 5,547,846 Increase in restricted assets 66,892 - 66,892 839,129 Decrease in long-term debt 14O,O 6 - 140,076 226,570 Decrease in compensated absences payable 26,596 - 26,596 602 TOTAL USES OF WORKING CAPITAL 1 *870,320 1 ,698,750 3,569,070 6i614,347 NET INCREASE (DECREASE) IN WORKING CAPITAL $ (510,693)$ 1,333,730 $ 823,037 $ 2,431,868 ELEMENTS OF NET INCREASE (DECREASE) .j IN WORKING CAPITAL: Cash and investments $ (532,304)$ 1,293,765 $ 761,451 $ 3,128,398 Intere-:t receivable (19,637) (386) (20,023) 113 Accounts receivable (50,020) 6,147 (43,873) 72,194 Due from other funds 2,220 - 2,220 (3,219) Prepaid expenses and other assets (136,010) - (136,01U) 206,108 Accuunt.a payable and accrued payroll (24,905) 34,204 9,299 (255,462) Interevt payable 215,450 - 215,450 (35,899) ' Deferred revenue 22,208 - 22,208 (22,208) Due to other funds - - - (320,045) Due to other agencies - - - (90082) Deposits �, 25,768 - 25,768 (244:482) Current portion of long-term debt (13�463) - (13,463) (3,548) NET INCREASE (DECREASE) 1N WORKING CAPITAL $ (1,10,693)$ 1,333.730 $ 823,037 $ 2,431,868 See accountants' report and n6,tes to financial statements. 1 I CITY OF HUNTINGTON BEACH I NOTES TO FINANCIAL STATEMENTS 1 � .tune 30, 1986 1. SUMhAkY OF SIGNIFICANT ACCOUNTING POLICIES: a. Description of Fund Types and Account Groups: The City of Huntington Beach %City) accounts for its financial position -, and operations in accordance with generally accepted accounting principles applicable to governmental unite. Accordingly, the Cit; uses several funds and account groups. A fund or account group i1 an j accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific i governmental activity. The City maintains the following fund types and account groups% Governmental Fund Types: The General Fund is used to account for all financial resources except those required to be accounte%: for in another fund. I ' ^ Special Revenue Funds are used to account for the proceeds of specific revenue sources thrt are legally restricted to expenditures for specified purposes. Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general and redevelopment long-term debt pri►icipal and interest. Capital Projects Funds are used to account for financial resources to be used foi- the acquisition or construction of major capital facilities. j Proprietary Fund "Types: Enterprise Funds are used to account for operations that are financed ` and operated in a manner similar to private business enterprises and Where the intent of the governing body is that the costs (expenses , including depreciation) of providing goods or services to the general III public in a continuing basis be €inanned or recovered primarily through user charges. If Internal Service Funds are used to account for serviceb provided by one department to the other depart:aents of the City on a cost-reimbursement basis. I` F'iduc intl Fund Type: i� AAgeitU_ Funds are used to accoui%t for assets held by the City an an agent % for individuals or private organizations. I I �-•f See act; Cants' rehn: f . • 11- i CITY OF HUNTINGTON BEACH NOTES TV FINANCIAL STATEMENTS (Continued) June 30, 1986 i 1. SUMHARY OF SIGNlr:% 1 ACCOUNTING POLICIES (roNnNun), a. Description of Funu Typeu and Account Groups (Continued): Account Groups: The General Fir.,d Assets ccount Group is used to maintain control and cost Informal !on on capita, insets owned by the City, other than those of the proprietary fund type The General Long-Term Debt Ae iunt Group is :-sed to account for the unmatured long-term liabilities chat will be fir .need from governmental funds. b. Basis of Accounting: Governmental fund types and agency fundf, use a rat. fed accrual basis of accounting except that assets of the Employee i erred Compeusation Agency Fund are reported at market value rather tL cost, in accordance with GASB Stateuent 2 . Revenues are r'.ecogn cel when they are "susceptible to accrual", that is, weasureble itnd a ilable to €int ce expenditures of the current period. Accrued revdnki, include property texes recel-ed Within 60 dayn after year end (See lg) federal and :state grants and subuertions, Interest, and nert=i crges for current services. Reven.:es which art not considered cY rible to accrual include certain licenses, permits, fines, forfeit. s and penalties. gxpenoitures, other than principal and interest on lLiig-term debt and employee compeneatrsd absences (vacation and sick lea,. are recorded - I when the liability is incurred. Proprietary fund typt re accounted for on the accrual basis. c. Investments: al Investments are stated at cost, whfch was leas than market value .at June ` 30, I986 (See Note 3). If market value declines bel-w coat, a to:g ' it recorded unless such declines are considered tempurarp. d. Property and Equipment: Acquisitionu of property and equipment are recorded am expenditures in governmental fund types at the time of purchase.. Thene assets are capitalized at coat In the General Fixed Assets Account Group. u Expenditures for infrastructure (roads, curbs, sidewalks, sewers, etc. ) normally are not capitalized au such assets av& imnovable and generally of value only to the City. No depreciation is provided for assets capitalized in the General Fixed Assets Account Group. Sae accuuntants' report . i I CITY OF HUNTINGTON BEACH •! NOTES TO FINANCIAL. STATEMENTS ' (Continued) June 30, 1986 1 1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESt d. Property and Equipment (Continued)t �± Property and equipment acquired by proprietary fund types are capitalized at cost at time of purchase in the respective fund. Assets acquired from gifts or contributions are recorded at fair market value ,.� at the time received or, in the case of water distribution assets, at the City Council anneptance date. Depreciation on such assets is calculated on the straight-line method over the estimated useful lives shown below and charged to the operativas of the respective fund. all Category Useful Life Production, pumping, transmission and distribution plant 10-50 years General plant 20-50 years Transportation equipment 5-30 years i e. Employee Compensated Absences: For the governmental fund types, it is the policy of the City to record the cost of vacation and sick leave when paid. At June 30, 1986 the unfunded liability for vacation and sick leave accumulated by the City's governmental fund employees totalled $3,277,869. The City has recorded this amount in Lhe General Long-Term Debt Account Group under the assumption that such amounts will be paid with future financial resources rather than currently available expendable resources. In the proprietary funds, the liability of $103,109 has been recorded. f. Budgetary Accounting: The City Council annually adopts a budget by June 30 of the prior fiscal year. The budgeted expenditures become the appropriations to the 1 varioub departments. This "appropriated budget" (as do-fined by NCGA _1 Interpreta►ion Number 10) covers substantially all City expenditures with the exception of capital improvement projects carried forward from prior years, which expenditL"ss constitute a legally-authorized "non- appropriated" budget. The City Council may revise the budget at any t-i ti*ae. The City Administrator may transfer funds from one object purpose to another within the same department without increasing the budget of anv one department. Any changes to the total budget of any department Y or fund must be approved by the City Council . Expenditures ray not exceed appropriations at th.! departmental level . All unused } appropriationa lapse at yehr-end. rj See accountants' report. w CI^_Y OF HUNTINGTON BEACH NOTES TO YVIANCIAL STATEMENTS (Continued) June 30, 1986 1. SUli4ARY OE' SIGNIFICANT ACCOUNTING POLICIES: !� i f. Budgetary Accounting (Continued): Budgets :or governmental fund-types are adopted on a basis substantially consistent: with generally accepted accounting principles. There are no significanr non-.:udgeted expenditures. Revenues for the Special Revenue funds are budgeted by entitlements and gratitsi expenditurns and transfers are budgeted based upon available financial resources. , Budgetary data is presented for the General , Special Revenue and Debt Service funds. Budgetary 'Information is not presented for the Capital Projects funds since the&e funds are budgeted on a long-tens project by project hesis. r- Tire City utilizes an encumbrance system as a management control technique to assist in controlling expenditures. Encumbrances represent amounts committed for goods or services on purchase orders which are r' unperformed. At year-end, ali outstanding encumbrances are reported as , reservations of fund balance in governmental fund types. These outstanding encumbrances are then re-appropriated into the new fiscal r year. The budgetary information shown for revenues and expenditures represent the original adopted budget adjusted for any changes Made by the City Council or City Administrator. �._. g. Property Tax Revenues: •- Property tax In California is levied in accurdance with Article 13A of the State Constitution at one percent of county-wide assessed �. valuations. This one percent is allocated pursuant to state law to the appropriate units of local government. i Property tax revenue is recognized in the fiscal year for which taxes have been levied, provided that the revenue is collected in the current period or will be collected within 60 days thereafter. The property t• calendar is as follows: Lien .te: March 1 Levy Data: July I Due Date: First Installment - November 10 �- Sec,)nd Installment - February 10 DeIiitqurt:L Date•: First Installment December 11 Second Installment - April 11 See accountants' report. 1cft> CITY OF HUNTINGTON BEACH VOTES TU FINANCIAL STATEMENTS ( intinued) June 30, 1966 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICiESs g. Property Tax RevenLe (Continued): Taxes are collected by Orange County, sad are remitted to the City periodically. (Dates and percentages may vary slightly from year to year.) November 30 y» December 19 20% December 26 20T jFebruary 1 Balance of First Installment !larch 28 5% April 26 34% �j July 26 Balance of Second Installment Tax Increments Under provisions of the California Health and Safety Code and the Redevelopment Plan, taxes levied by any taxing agency on all taxable property in the redevelopment project area are divided between the i Redevelopment Agency and the various taxing agencies. �J An amount equal to the current tax rates applied to the assessed valuation (within the area)project prior to the adapticn of the -� Redevelopment Plan is paid into the funds of the respective tasting agencies. The increment of taxes received over and above that amount -^ are remitted 80% to the Debt Service Fund of the Redevelopment Agency and 20% to the Low Income Housing Fund. h. Capitalized Interest: Interest expense incurred, net of interest earl -d on unused proceeds from Certificatec of Participation, totalling $185 ,000 has been "j capitalized as part of the cost of construction in the Emerald Cove -.� Housing Fund (an Enterprise Fund). i. Total Columns on Combined Financial Statements: ni( The combincat financiai statements include Lotal columns which aggregate the financial statements of the various fund types and account groups. The columns are designarec "memorandum only" because the totals are not is comparable to a conso!idation in that interfund transactions are not eliminated. 1 See acc:ount:ints' report. -15- 1 CITY or HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS PW (Continued) I June 30, 1966 �+• SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: J. Measurement Focuss ' All governmental funds ars accounted for on a spending or "financial '! flow" measurement focus. Thir means that generally only current assets 1 , and current liabilities are included on their balance sheets, with the exception that the noncurrent portion of long-term -eceivables due to .- governmental funds are reported on their balance sheets, offset by fund balance reserve accounts. Statements of revenue, expenditures and changes in fund balances for governmental funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprieLcry funds are accounted for on a cost of services or "capitil maintenance" measurement focus. This L..-.ens that all assets and , liabilities (whether current a-• noncurrent) associated with the activity are included on the balance sheers. Their reported fund equity presents total net assets. Proprietary :++nd operating statements present increases (revenues) and decr-!aces (expenses) in total net assets. k. Inventories are accounted for on the purchase (expeaditure) method, whereby expenditures for inventory are writt:ra off 4s incurred . Inventories of materials and supplies agpregate $146,M at June 30, 1986. -- 2. DESURIPTlON OF THE REPORTING ENTITY: This report incorporates NCGA Statement 3 which outlines criteria for det-:rmining whether an entity's financial information should be included in or excluded from the City's report. The following separate legal entities have been included with the City of Huntington Beach in the report bascd on the statemen[a guidelines: I Hunrington Beach Public Facilities Corporation - This entity was formed in •- 1970 to Losue bonds to construct the civic center and library complexes. The general fund annually transfers amounts to cover the debt service on the corporation's bonds. The corporation's original governing body was !ppointzd by the City Council. Parking Author. :y of the City of Huntington Beach (Parking Author::y) - This entity was forned in 1967 to issue- bonds to construct off-street parking facilities. The general fund annually transfers amounts to cover the larking Authority's debt servicc requirements . The Parking Authority' s governing body is the City Council . See acci-untants' report. I CITY OF HUNTINGTON BEACH NOTES TO YINANCIAI. STATZMXNTS i (Continued) ••+ June 306 1986 2. DESCRIPTION OF THS RYPORTING ENTITY (CONTINUED): Redevelo7mentAgency of the City of Huntington Beach (R:development Agency) Thi.e entity was formed in 1967 to facilitate the rennavation of older areas r; in the City. The City Council aerviccs as the governing body of the Redevelopment Agency. Also, the City makes loans to the Redevelopmeti:t Agency. There are many other governmental agencies, including the County of Orange, the Huntington ?each and Ocean Vi•--w Gaified School Districts which provide services within the City. These entities have independently elected governing boards and are not a component of the City of Huntington Beach and their financial information is not included in this report. 3. CASH AND INVRSTNZNTSs Cash and investments are reported in the accompanying combined balance sheet as follows$ cash and investments $ 37,842,745 _ Cash with fiscal agent 15,642,425 $ 53,485_170 Cosh held by fiscal agent is restricted and is not under the control of the City Treasurer, and is not available for investment by the City. The following disclosures are made in accordance with Statement No. 3 of the �3 Governmental Accounting Standards Board (GASB 3i1 .,� Authorized investments The City of Huntington Beach operates itu pooled idle cash investments under the Prudent Man rule (California Civil Code sections 2261 at seq.) This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California (Government Cod1 Section 53600 at seq.) Under provisions of the City's Investment Policy and in accordance with Suction 53601 of the California Government Code, the City may invest in the following types of instrusentas r. a. Bankers accep,�ance. b. Negotiable certificates of deposit. � i c. Commercial paper. d. Bonds issued by the City. e. Obligation of the United States Treasury. S � See accountants' report. �r� ^17- i I CITY OF HUNTIhGTON BEACH NOT'P.S TO FINA.YCIAL STATEMENTS (Continued) June 30, 1986 ... 3. CASH Al!D INVESTMENTS (CONTINUED): OM f. Federal Agency Obligations: Federal Iatcraediate Cr..dit Bank Debentures (FIC$ a) Federal Land Bank Bonds (FLB's) Federal Howe Loin Bank Notes and Bonds (FHLB s) Federal National Mortgage Association (FNMA's) Small Business Administration (SBA's) Governsitntal National Mortgage Association (GNMA's) Tennessee Valley Authority Notes (TWO Student Loan Association Notes (Sallie MAE's) g. Obligations of the State of California or of any local agency within the state of Californias The Local Agency investment Fund (LAIF) is a special fund of the California State Treasury through which local governments may pool ,. investments. Each agency may invest up to 05.000,000 in this fund. Investments in LAIF are highly liquid, as deposits can be converted to ' cash within 24 hours without loss of interest. Investments with LAIF are sec&ed by the full faith and credit of the State of California. r� h. Repurchase Agrsawents: Througho,st the year ended June 30, 1986, the Pity utilized overnight repurch&ae agreements for temporary investments of City funds. Such repurchase agreements were used on an average of twenty to twenty-two times per month, and generally did not exceed 10% of the City' s investment portfolio. I. Reverse - Repurchass Agreements: Although the City's Investment Policy does not preclude the use of Reverse - Repurchase Agreements, the City had no such investments at any �- time during the fiscal year. Collateral For Deposits Under provisions of the California Government Code, California binks and -- navings: and loan associations are required to secure a City'e 3apoeits by pledging government securities with a value equal to 110% of a City ' s deposits. California law also .allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. See accountants' report. -18- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Contiaued) June 30, 1986 i 3. CASH AND INVESTMINTS (CONTINUED): f*1 ' Collateral for Deposits, (Continued): .-, The collateral for certificates of deposit is generally held in safekeeping by the Federal Rose Loan Bank in San Francisco as the third-party trustee. The securities are physically held in an undivided pool for all California public agency depositors. The State Public Administrative Office for public agencies and tre Federal Horne Lean, Bank maintain detailed records of tie security pool which are coordinated and updated weekly. The City Treasurer, at his discretion, may waive the collateral requirement for deposits which arc fully insured up to $100,000 by the FDIC or FSLIC. It is the City's policy to waive the collateral requirement in order to receive a higher interest, yield on its investments. i Safekeeping Arramements for Investments Under Sections 53651 to 53653 of the California Government Code, as amended, the collateral underlying a City's investmento roust be "delivered" to the City. If U.S. Treasury Bills are used as the underlying collateral , delivery may be made by book entry only. For all other collateral, the security must be physically delivered either to the City or to a third-party custodial agent. Under California Senate Bill No. 2115, passed by the California Legislature in 1986, when a bank is used as a third-party custodial agent, the bank is permitted to maintain the underlying securities in either its "Trust Department," or a separate "Safekeeping Department " I The City'a deposits and investments are maintainer: with various financial - institutions and are stated at cost. As defined in GASB 3, the City's investments are categorized in the r1 following manner: + Category It includes investments that are in3ured or registered in the City's name, or where the securities are held by the City's agent in the City's name. 1A Category 2: includes uninjured and unregistered investments, where the securities are held by the broker' s or stealer' s trust tA department or agent, in the i4 ty's nose. i Category 3t includes uninsured knd unregistered investments, where the securities are field uy the broker or dealer, or by its trust department or agent, but not in the City's nose. See accountants' report. F �-19- tA r�c�' i j C1TY OF HUNTINGTON BEACH ROTES TO FINANCIAL STATEMENTS r (Continued) June 30, 1986 M t 3. CASH AND INVESTMENTS (CONTIWJLD): Safekeeping Arrangements for Investments (Continued)s M Citepyory T&tal liarket 1 2 3 Cost Value Repurchase agreement $ 100100n $216 Q 00 $ - $ 2,720,000 $ 2,720,000 Federal home Loan Bank 2,9791"3 - - :,979,063 2,966,000 r Small Business Administration e.589.113 - - 589i113 _627,930 subtotal $3,668,176 $2,620,000 $�� 6•,2G8,176 6,315.,930 Depcsits which are 100% insured or collateraliseds Demand Accounts (765,431) (765,431) Certificates of deposits 28,540,000 289540,000 Investmeent Local Agency Investment Fund 3,800,000 3,800,000 Total Deposits and Investments #37J42,745 IRLS70 499 A1L, •euion of Interest Incume Among Funds The City pools+ all nonrestricted cash for investment purpose, . Interest income is allocated monthly to the various funds based on the mouth-and cash balances. interest income from restricted cash is allocated direeLly to the fund earning the income. 4. DEFERRED CORPINSATIONs r• Full-time City employees have the option of deferring a portion of their �. earnin3s. The deferred amountp ace primarily invested in savings accounts and certificates of deposit. The City retains title to the funds until withdrawal by the employee, which may take place at the employee' s termination or .ny later date. The amount of deferred compensation payable at June 30, 19FG was $7.253,342, which represents the market value of the investments. Since the City has a fidiciary responsibility to handle the plan, assets of the plan are includeo in an &•Saucy fund in the City's financial statements. Und:r provisions of Internal Revenue Code Section 457, the assets of the plar remain the property of the City until paid or made available to the I participants. See accountants' report. _20- w 1 - rse 1 CITY OF HUNTINGTON BEACH ■4 NOTES TO FINANCIAL STAZ'xMENTS I (Cry' ' usd) am June 30, 1986 5. WIF,XRED RRVENUEs Certain revenues in the governmental and enterprise funds due from the redevelopment agency have been deferred until received frsm the agency. These amounts are as follows: Cenral Funds Sales price of the Huntington Breakers apartment site $ 405,536 Interest on amount due on sale of Huntington Breakers site accruing at 10% per annum 1349232 Development fees plus interest sccruing at 10% per annum 335,210 Interest on other loans and advances accruing at 10% per annul: 423,56.0_ .•� Total General fund 1,298,538 1 Special Revsnua Funds: Park AcquLviLion and Development Funds Sales price of the Emerald Cove and adjacent site 2,750,000 interest on amount due on scale of Imerald Cove and adjacent site 935,016 Development fees 247,664 w Total park Acquisition and Development Fund 3,932,680 Sewer Funds .--� Development fees 47,804 Planned Local Drainage Funds Develor.sent fees Total Special Revenue Funds 410�60.12� Total Deferred Revenue 1_5.358 L660 6. RETIREMENT PLAIT s i The City is a participant in the Public baployess Retirement System (PER$) of the State of CP!=fornia covering all the City's permanent employees. Contributions to the system are based on rated set by PER$ based in certain actuarial assuuptions, such as length of employment, estimated salary rates, , e mortality rates, projected retirement benefits and other factors. Pension costs are recorded as expenditures when paid by monthly contributions to � '"J MS. The total pension expense for the year ended June 30, 1986 was $6,911,265, of which approximately $1,620,700 was for prior service costs. Actuarial information related to the plin was not available from PERS for June 30, 1986. However, at June 30, 1985, the plau net assets available for benefits totaled $77,630,400, and the present value of the City' s unfunded obligation for prior service costs totaled $17,414,500, which amount still be funded through the year 2000 frost established contribution rates. The ! actuarial present value of vested and non-vested accumulated plan benefits is not determined under the YEM system of accounting. See accountants' report. Li`� -21- CITY OF HUNTINGTON REACH NOTES TO FINANCIAL. STATEMENTS -1 i (Continued) 4 June 30, 1986 7. SELF 1fISURANCE PLAITS: ' The City self-insures for health, workers' compensation and general ; { 1ia! tlity claims. i The City is self-insured for the V rst $75*000 of each health claim and s $150,000 of each workers' compensation claim. Claims in excess of self- insurance limits are covered by insurance up to 019000,000 for health and the statutory limit for workers' compensation. The City maiutains no general Iiability insurance policy. It is the City' s policy to charge to expense amounts of claims which are reasonably determinable and where the existence of the Cit-'s liability is probable in accordance with MCGA Statement 4. Charges are made by the Self-insurance Fund to other City funds based upon estimated insurance policy costs, self-insurauc: tosses and other operating expenses. The liability for self-insurance claims includes an *mount for liabilities incurred but not reported at June 30, 1y86. Transfers from the General Fund are periodically made to cover deficits c4.aL_: from inadequate '- charges to the other funds. 8. INTERFUND TRANSAGTIONS: r` Individual interfund receivables and payables were as follows at June 30, 19861 Due From Due to Other Funds Other Funds General Fund $,6 798,235 } Special Revenue Funds: Sewer 47,804 - Planned Local Drainage 79,638 - federal Revenue Sharing - Other Grants 1,064,483 Park Acquisition and Development 3,9320680 - Enterprise Funds: Water Utility 24,4?8 - Smerald'Cove Housing - 111,411 Long-term Debt Account Group (See Note 10) ;� 11,d25,857 $ 31,93 7,268 $ 11,937,268 9. :EGMENT INFORMATION FOR BN:ERPRISE FUNDS: The City has three enterprise funds which are, run on the sane basis as c, , rcial enterprises - Water Utility, rxadowlWk Golf Course and Enerald . Cove Housing. Certain key financial data for the year ended Juns 30, 1936 for those fucds was as follows: See accountants' report. -22- e r ` I I 1 � I ' CITY OF HUNTINGTON BEACH ~; NOTXS TO YINANCIAL STA'YZMENTS .Continued) I �+ June 30, 1986 ..ti 9. SEGMBUT INFORMrsTION FOR ENTERPRISE FUNDS: f Emerald Water Meadowlark Cove Utility Golf Course Houeins Total Operating revenues $_ . 8,172,637 4 218,437 575,826 $ 8,966,900 Depreciation erpense $ 18173,616 $ 32,587 1 79.379 1 1,285,578 j Operating income ( moss) ,$ (1,761,,Oi3)f 1851850 $ 265L509 $ s 1,309,654) qet income (loss) (1,336,343)8 105.123 $ 06,484)$(1, 257,704) , j Capital contributinua received 1,294,978 $ $ - 1,2941976 ^' 6cquisitioas (disporitions) of fixed assets, net 150,361 $ (2.770)$ 191,411 339t008 get working capital $ 3,657,,809 358,123 S,795,396 6�4,841,328 Total assets $ 33,9424160 # 3,690,719 6_,911,074 $ 44L543,9.53 Long-term obligations, net of current portion $ 1,251,657 1,755,949 $ 4,497,633 ¢_ 71515,239 Total equity 8 30,746,508 _1,867,,,8% 1 2,2113,231 L34,829�63! 10. GENERAL LONG-TERM DEBTt The following it a sumary of chaagec in general lung-term debt for the year -- traded June 30, 1986: - Balance Balance Outstanding Outstanding June 30, June 30, - 1985 Additions Retirements 1986 1970 Park Bonds $ 3,425,000 4 - $ 260,000 $ 3,165,000 Public Facilities Corporation Ltdsehold Mortgage Bonds 11,40,000 - 590,000 10,850,000 Parking Authority Rei<_nue ►fonds 1,170,000 - 110,000 1,060,000 California Coastal Conservancy Note ?4,)&bie 208,900 216,100 - 425,000 Compensated absencec 2,9589925 318,944 - 3,277,869 Equipment leases 212,33:. - 212,331 - Due to Other Funds 5,994,155 5.831,662 11,825*857 Totals $ 25,409,351 �$ 6.366,70E 0 1,172,331 1 30,603,726 See accountants' report. ILICA -?3- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS r� (Continued) ,Tune 30, 1986 r 10. GENILRAL LONG-TERK DEBT (CONTINUED): r� a. 1970 Park bonds: , On March 1, 1970 $6,00,000 of general obligation bonds were sold cj acquire and construct park facilities. Principai matures annually on March 1 and bears interest at 6% per annum, due semi-annually. ' The annual debt service requirements r4 amortize the bonds outstsnding ;~ at ruae 30, 1986 was as followse Year Ending 4 June 30, Principal Interest Tool r- 1987 $ 280,000 $ 189,900 $ 4690900 1988 295,000 173,100 468,100 ' 1989 310,000 155,400 46,42400 1990 305,000 136.800 441,00 1991 350,000 118,500 468,500 � . 1992 370,000 97,500 467,500 1993 395,000 75,300 470,300 r 1994 415,000 51,600 466,600 1995 445,000 26,700 471,700 $ 2,165,000 1,024,800 4,169,800 b. Public Facilities Corporation Leasehold Mortgage Bands: On January 15, 1972 $11,100,000 of Lessshold Mortgage bonds were issued �- to construct the Civic Center Complex. The bonds are secured by a lease between the City and the Corporation whereby the General Fund annually transfers $854,900 to the Corporation. Principal matures annually on January 15 and bears intere&: ranging from 5% to 5.5% per annum, payable semi-annually. The principal b,slance outstanding at June 30, 1986 is $7,400,000. On September 1, 1972 $5,000,000 of leasehold Mortgage Hondo were issued to construct the Central Library Complex. The bonds are secured by a lease between the City and the Corporation whereby the General Fund annually transfers $399,000 to the Corporation. Principal matures annually on September 1 and bears interest ranging from 5% to 5.9% per aunua, payable semi-annually. The principal balance outoicanding at June 30, 1986 is $3,410,000. The annual debt service requirements to amortize the bonds outstanding at June 30, 1986 was as follow,: See aco;ountt:.ts' report. _ /5b -24- i CITY OF HUNTINCTON BEACH +� NOTES TO FINANCIAL STATEMNNTS � (Continued) Jrtne 30, 1986 t 10. GENERAL WNG-TERH DEBT (CONTINURA)s r; Year 9nding Civic Center Bonds Library Bonds June 30, Principal Interest Principal Interest Total r 1937 43as000 $ 4019225 4 2009000 $ 182,037 $ 1,213,312 1988 450,000 377,575 210,000 170,812 1*208,387 1989 465,000 352,825 .630,000 158,712 1,206,537 1390 530,000 327,250 240,000 145,667 1,2420917 j 1991 555,000 298,100 2609000 131,667 1,2449767 1992 600,000 267,575 270,000 116,827 1,254,402 1993 640,000 234,575 290,000 101,CO2 1,2-5,577 s 1994 675,000 199,375 305,000 83,968 10263*343 1995 725,000 162,250 320,000 660000 1,2730250 ..., 1996 775,000 122,375 340,000 47,023 1,284,400 1997 830,000 79,750 360,000 28,250 112981.000 1998 765 JO0 381250 385.000 _ 9,625 1,1971875 $ 7,440,000 $ 2,861�125 $ 3,410.000 4 1,241.642 $ 14.952 1767 c. Parking .Authority .1.evonu. :,ondss On September 1, 1963 $2,300,900 of revenue bonds were issued to construct off street beach parking improvements. The bond indenture requires that annual debt service be budgeted by the Gcaeral Fund. PrincipaA matures annually an September 1 and bears intereac at 3.25% per annum, payable ..,•mi-annually. The annual debt-service requirement to amortize the bonds outstanding at June 30, 1986 was as follows, Year Spling •June_30, Principal Interest Total 1987 $ 1.15,000 52,631 $ 1679631 1988 120,000 46,463 166,643 1989 125,000 40,031 165,03). 1990 135,000 33,206 168,026 1991 140,000 23,988 to r988 1992 150,000 17,849 167,849 1993 160,000 10,238 170,236 1994 115.000 3.019 118F.019 11060,000 $ 2?9,425 '� 1.289.425 See accountant's r..:4ort. -25- i t� 1 CITY CP HUNTINGTON BEACH NOTES TO FINANCIAL STATEMEnTS (continued) June 30, 1986 10. GENERAL LONG-TERM DEBT kCONt'INUED): d. California Coastal Conservancy Note Payable: In March, 1983, a storm damaged the municipal pier. The California -^ Coastal Conservancy agreed to lead the City $425,000 to cover a portion , of the repair costs. Through July 1, 1985 $208,900 had be.n advau=ed to the City and during the year, the additional $216,100 Was Advanced. The first $150,000 of the note bears interest at 8.00% pmr annum. The remaining $275,000 bears interest at 8.86% per annum. Payments commence July 1, 1987 and are due annually thereafter until the July 1, 1997. The future required payments on the note are as follows: Fiscal Year Ending June 30. Amount r 1988 $ 22,355 r 1989 650025 1990 65,075 199= 65s025 ; 1992 65,025 1993 and after 366.531 648,986 Less amount representing interest (223.986) Principal outstanding June 30, 1986 425 000 e. Compensated Absences Payable: Thera is no fixed payment schedule to pay the governmental fund types outstanding liability for nomponsated absen2as earned at June 30, 1986 '~ j of $3,277,86D. f. Due to Other Funds: I Tlje Redevelopment Agency has entered into various transactionr With other funds. Since payment by the Agency will be wade from tax Increment revenues in future years, the debt is classified as long-term. See accountants$ report. -26 1� r l : CITY OF HUNTINGTON OEACH 'i NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1986 10. GENERAL LONG-TERN DEBT (CONTINUED), f. Due to Other Funds: �►II The various transactions are described below: , t Sale of land by the Park Acquisition and Development Fund for $2,750,000 plus interest at 10% per annum $ 3,6850016 Sale of land by the General Fund for $405,536 plus interest at 10% per annum 539,769 Cash advances from the General Fund plus accrued interest at 10% per annum 5,801,046 Cash advances from the Grants Fund 1,064,483 ..� Developers fees payable to various funds i to be subsidised by the Agency 734,744 Total Amount Due to Other Funds $ 11,8251857 Below is a reconciliation of the change in amounts due to other funds by the Redevelopment Agency recorded as general long-term debt for the year ended June 30, 19861 Amount due to other funds July 1, 1985 $ 5,994,195 Advances received 4,913,841 Transactions recorded in other funds as deferred revenue 917,,821 Amount due to other funds July 1, 1986 $ 11,825,857 11. ENTERPRISE LONG-TERM DEBT: The following is a summary of changes in Enterprise Fund long-term debt for � the year ended June 30, 19h6: � Balance Balance i ,. j Outstanding Outstanding June 30, June 30, 1985 Retirement• 1986 t � 1963 Water Revenue Bends $ 11111,000 $ 58,000 $ 1,g53,000 San Joaquin Reservoir Note Payable 366,312 44,957 v21,355 Meadowlark Golf Course Note ' Payable 1,804,917 23,656 1,781,261 P. Emerald Gove Housing Certificates of Participation (net of discount of $102,367) 4,497,633 4,497,633 r Compensated absences 129,705 _ 26,596 103,109 7,909,567 $ 1534209 7,756,358 See accountants' report. � t�3 -27- ' �; ' CITY OF HUNTINGTON REACH .•. HOTS$ TO FINANCIAL 6TATIONTS (Continued) .Tune 30, 1986 11. EKTNRPRISE LONGTERM DBETs ^ a. 190 Water Revenue Bonds: On Nuvember 1, 1963 the City sold $3,750,000 of revenue bonds to construct Water Utility improvemuts. The bonds are secured by revenues j of the Water. Fund. Principal matures annually on November l and bears i iCLgrest at 3.5% per &anus, payable semi-sunually. The annual debt service requirements to amortise tits bonds outstanding ' at June 30, 1986 vas as folloves Year Radiag June 30, Principal Interest Total 1987 $ 170,000 $ 30,321 $ 200,321 1988 160,000 249186 204,186 1989 180,000 17,886 197,886 1990 190,000 11,411 201,411 1991 200,000 40586 204,58E 1992 133,000 4,113 137,113 4 I,053,000 92 A03 f 1,145 5d3 The bond indenture requires that Water Utili:'y revenues equal or exceed 1.25 times the annual debt service requirement (principal and interest). Net revenues are defined as gross revenues less maintenance and operation revenues, excluding depreciation. The C4 y has not complicJ with this requirement for the year ended June 3" '386, as shown belovs Gross revenues $ 8,650,971 Operating expenses, excluding r Interest and depreciation 84760,034 Not revenues (deficit) 1"9.063) Debt service requirement $ 97,631 See accountancy' report. ._ 28_ f CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) June 30, 1986 i 11. EPTIRPRISE LONG-TERM DEBT b. San Joaquin Reservoir Note Payablei In 1979 the City and several other local cities and water districts j purchased the Ban Joaquin Reservoir. The City is paying a portion (13.56%) of the debt service for the 1961 construction of the reservoir plus operating and improvement costs. In the event of default, the ' expenses and/or debt service payments shall be reallocated among the rbmaining noudefau).:ing owners in proportion to tho percentage interest + owned as though the party in default did not exist. The City has recorded its portion of the reservoir as a fixed mews: in tho Water l Utility Fund. i —, The future required payments on the note are as followas Year Ending June 30A 1987 $ 58,018 1988 60,228 i 1989 60,284 1990 600464 1991 61,028 1992 544 j984_ 3551006 Lear amount representing Sc `.wrest .. (33J31) • Principal outstanding at r June 30, 1986 1.21LL355 t� c. Meadowlark Golf Course Note Payablei lens-The City financed its purchase of Meadowlark Golf Course through a term 7% note. The note payable is collateralized by future revenues and does not represent a general obligation of the City. The City has leased the golf course operation to an outside party at a minimum lease income of $150,000 annually through 2007 and a percentage of income based upon gross revenues for the years 2008-2009. As part of the initial payment of $928,000, the County of Orange contributed $600,000 upon the City's guarantee to use general City funds, when and if 1 necessary, to ensure that Meadowlark Golf Course will be maintained as open space. See accountants' report. -29. CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (Continued) Line 30, 1986 11. ENTERPRISE LONG-TERM DEBTi c. Meadowlark Golf Course Note Payable (Coutiuued)s The future required payments on the note are as follows: Yeir Ending .- June 30, 1987 $ 150,000 1988 150,000 1989 150,000 1990 150,000 1991 and after _ 3,165,703 r 3,7659703 Lees amount rep: :seating interest (1,984,442) Principal outstanding at June 30, 1986 1,781,261 d. Emerald Cove Housing Certificates of Participation: In 1984 the Redevelopment Agency sold Certificates of Participation to finance the construction of a senior citizens housing project. The certificates bear interest at 9.5% per annum, which is payable semi- annually, totalling $437,000 per year. The entire principal of $4,600,000 is payable at maturity on May 1, 1994. The land upon which the project is being built was sold to the Redevelopment Agency by the City. The City is leasing back the project and is operating it as an enterprise. Lease payments, equal to _ interest, of $36 ,417 are payable monthly. The holders of too certificates have a proportionate interest in the lease payments to be made by the City. The certificates are secured h7 the land and the buildings constructed, an assignment of rents, and an irrevocable letter of credit issued by a bank. A discount of $126,500 on the tale of the certificates is being amortized through maturity. The unamortizad discount at June 30, 1-986 is $102,367. - See accountants' report. -30- � I CITY OF HUNTINGTOW BEACH 00, NOTES TO PINANCIAL STATEMbNTS i (Continaed) June 30, 1986 12. CHAN, IN GENERAL FIXED ASSETSt Ai CINERAL FIXED ASSETSz "1 Bfklance Balance June 30, 1985 Additions Dispositions June 30, 1986 Land $ 25,871,290 $ 4,9926723 $ - $ 30,864,013 Buildings 23,450,615 1,720,558 12,712 25,158,461 Machinery and ' equipment 9,329,761 349,351 345,784 9,333,328 Improvements other than buildings 6,846,597 774,862 39,292 7,582,167 j Construction in progress 1,11" .580 _ 111191580 $ 66,617,843 8 7,8371494 1 1,517,368 72,937,969 .., PROPRINTARY FUNDS t t Enterprise Fundst Land $ 49751,395 $ - $ - $ 4,751,395 ~� Buildings 1,232,039 3,968,756 - 5,2000795 Machinery and equipment 43,498,545 10568,059 50,586 45,016,018 ^ C.na� . uction in progress 3,879,880 - 3,0 9,880 - 53,361,859 $ 5,536,815 1 3,93U,466 54,968,208 Least accumulated) depreciation 17 699,091) (18,957,032) i # 35t,66x,768 362011,176 w� INTIRNAL SERVICE FUNDSt Machinery and equipment $ 245,339 $ 1,,698,696 - $ 1,944,035 Least accumulated t depreciation (24,012) (132,023) 221j327 $ ;,812.012 r- See accountants' report. , � -31- w CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS j (Continued) ' 13. RESERVES AND DESIGNATIONS OF FUND EQUITY: Under the provisions of NCGA Statement 1, a city may set up "reserves" of fund equity to segregate fund balances which are not appropriable for - expenditure in future periods, or which are legally set aside for a specific futurti use. Fund "designations" also may be established to indicate tentative plane for financial resource utilisation in a future period. Each — of the City's reserves and designations are described belowi Special Debt Capital General Revenue Service Projects Enter isn Reserves: Encumbrances $1,t37,826 $ 969,899 $ - $ - $ - Long-term receivables 5,469,697 1,202,032 - Reimbursement agreements - 756,762 - - - Continuing projects - - - 2,6C2,043 - Labt service - - 6,864,970 - 94,231 City council "- projects 25,000 - - - - Other fund dc°icita 2,080,140 - - - - -- Designsvions: Subsequent year's expeneitures - 226771449 Totals j8,832,663 05,806,142 16,864,970 22,622,P41 9 94,231 a. Reserves for encumbrances are the amounts committed for materials and r services on purchase orders and contracts which are unperformed. b. Reserves for long-term receivables represent amounts which may not be repaid until future years. c. Reserves for reimbursement agreements represent expected future reimbursements to eavelopere for sewer and drainage construction. d. The reserve fox continuing projects was established to provide for long- term appropriations on projects not yet completed. e. The reserve for debt service is the. amount accumulated in Debt Service Funds or the amount Set aside in another fund in accordance with a bond indenture or similar covenant. f. The City Council hes reserved $25,000 in the General fund for certain special projects. Sea accountanto' report. -32- ». e ' I iCITY OF HUNTINGTON BEACH "9 NOTAS TO FINANCIAL STATEMENTS (Continued) June 30, 1986 I 13. RESERVIS AND DESIGNATIONS OF FUPS ZQUITf (CONTINUED)t g. A reserve has been established in the general fund to cover deficit fund i equity in the Self Insurance Fund (an Internal Service Fund) of ^t $2,080,140. h. The designations for subsequent years' expenditures are macs to provide ... for deficits budgeted for the subsequent year. l 14. COMMITMENTS AND CONTINGZACIESt a. There are certain legal actions pending against the City which have arisen in the normal course of operations, In the opinion of manag,2ment and the City Attorney, the ultimate resolution of such act'_^ = is not expected to have a significant impact , if any, on Zhe financial statements or operations of the City. b. The City established a program in Februzry 1983 to provide funds for the purchase of hcme mortgages secured by newly constructed and existing single-family hones within the City. Under this program, a total of $40,000,000 of mortgage revenue bonds has been issued, 020,000,000 in March, 1983 and $20,000,000 in July, 1984. The bonds are payable solely free, and are wecured by, a pledge of payments made on the home i mortgages and all funds held by the trustee under the indenture agreements. The bonds are not an indebtedness of the City and there exists no legal obligation on the part of the City to wake payments on the bonds from any source other then the revenue and assets pledged therefor. Accordingly, this program has been excluded from the accompanying combined financial statements. 15. PRIOR PERIOD ADJUSTMENT: Through June 30, 1985, the City did not record unbiV ed receivables in the Water Utility Fund. The amount that should he--* been recorded was $791,237. The dater Utility retained earnings as of June 30, 1985 has been adjusted to j reflect this change. Retained earnings as originally reported at June 30, 1985 $ 449,734 Adjustment 791,237 Retained earnings restated at June 30, 1985 $ 1,240,971 i i I � ` See accountants' report. _33_ I _: IJi CITY OF HUFTINGTON BUCK NOTILS TO FINANCIAL STATIMENTS F' (Continued) June 30, 1986 16. SUBSIQUENT HVSNTS: a. Tax and Revenue Anticipation Notess On July 1, 1986 the City issued 412 ,200,000 of Tax and Revenue «- Anticipation Notes bearing interest at 4.75%. These notes mature an June 30, 1a87. b. Defeasance of public Facilities Corporation Leasehold Mortgage Bonds - First Issues In July 1986, the City of Huntington Beach Civic Improvement Corporation was formed to pro,- :de for the acquisition of the Civic Center from the Public Facilities Corporation. In order to provide for the defeasance of the Public Facilities Corporation Leasehold Mortgage Bonds First Issue, the Civic Improvesent Corporatiou issued $20 9000,000 of certificates of participation. The governing board of the Civic Improvement Corporation is the City Council and the Corporation will be included under the City's reporting entity. The City and the Public Facilities Corporation dischArged their lease and sublease dated September 15, 1972 and all land and improvements at the Civic Center site reverted to tLe City. The City then transferred all interest in the laud and improvements to the Civic Improvement Corporatinn. The Civic Improvement Corporation placed $69940,860 from proceeds of the certificates into an oocrow accos±nt which will fund the debt service requirements on the A•-.eaded Public Facilities Corporatiou bonds. The City then entered into a thirty year lease agreement with the Civic Improvement Corporation for the Civic Center. For financial statement purposes, the certificates will be shown in the general long- ter-a debt account group. The monies transferred from the gene:al fund for the lease payment will be shown as a debt service fund since this will be used to sleet the debt service requirements of the certificates. The Cityagreed to budget toe lease payment in its general fund where it 8 g P y� will be recorded as operating transfers from the general fund to the Civic Improvement Corporation Debt Service Fund. The lease payments are equal to the debt service requirements on the certificates. The interast rates on the certificates vary from 4.75% to 7.9%. Interest is payable semi-annually on February l and August 1 with principal maturing annually on August 1 beginning 1987. Debt service requirene..ts are as follows% See accountants report. -34- II w CITY OF HUNTINGTON REACH NOTES TO FINANCIAL STATZMZNTS (Continued) June 30, 1986 l ' 16. SUBSEQUIXT EVENTS (CONiINUED)s i Fiscal Year Inding June 30 Princilal Interest Total -� 1967 $ 170,000 $ 10602,661 4 107729661 1988 220*000 1,526,388 1,7469368 1989 230,000 1,514,838 1,7449838 1990 245,000 1,3010612 1,746,613 1991 260,000 19486,913 1,7460913 1992 275,000 1o470,663 1,745,663 1993 295,000 1o452,788 1,7479788 1994 315,000 1,432,875 19747,875 ! 1995 335,000 1,410,825 19745,825 1996 360,000 1o386,705 1*746,705 1997 385,000 10360,425 1,7456425 1998 415,000 1,331,935 10746,935 1999 445,000 19300,810 1,745,810 2000 480,000 1,266,990 1,746,990 2001-2007 4,605,000 7,627,055 12,232,055 2003-2016 10,965,000 _ 4,7681440 15,733.440 $ 20,000�000 32,441,923 52,4414924 The net proceeds of the certificates of participation of $110691,517 will be used for the construction of a parking structure in the Main/Pier Redevelopment Project Area, although there is no legal restriction requiring the City to use the net proceeds on theme projects. Below is shown the difference between the aggregat,: debt service requirements of the old issue and the debt service requirements of the new issue both discounted at the true interest rate adjusted for the additional cash received by the new issue. Not Present Value of Public Facilities Leasehold Mortgage Bonds, First Issue $ 6,846,129 Net Present Value of Civic Improvement Corporation Certificates of Part elpi :ion Adjusted for Net Proceeds Received _ (8,171L782) Loss on Refunding of Debt. - Difference 1n Net Present Value of Debt Service Requirements $(1,325j,653) See accountants' report. -35. CT.TY OF HUNTINGTON BEACIS NOTIS TO FINANCIAL STA72MZNTS (Continued) i June 30, 1586 16. SUBSEQUENT EVENTS (CONTINUED)# c. Allocation of Property Tax Revenues: On August 13, 1986, the City and the Redevelopment. Agency entered into an agreement with the Orange County Superintendent of Schools retarding the Huntington Beach Center Redevelopment. Project Area property tax revenues. Commencing with fiscal year 1990-91, and each year thereafter, the Redevelopment Agency will pay the Orange County Superintendent of Schools one-fourth of the tax increwent revenues received by the Huntingtor Center Redevelopment Project Area. 17. OTHIR REQUIRED INDIVIDUAL YUND DISCLOSURESs a. Lxpeadittorea in the Public Communications Specijl Revenue Fund exceed appropriations by $2,299. b. The Self•Insurance Fund (on Internal Service Fund) has a deficit fund balance of 02,080,140 at June 30, 1986. This deficit will be funded in future years through increased charges to other funds and/or contri;)utions from the General Fund. c. The Water Uutility Fund has a deficit retained earnings balance of $95,372 at June 30, 1986. A rate increase was enacted in April, 1986. It is expected that this increase will enable the deficit to be -- eliminated in future years. r- I See accountants' report. ��� -36- I i «�. VIVANCIAL SLYXkNM or i IrDIVIDt" !mS i � I AND _I ACCOUn GWWS i l�I i ; 1 A ; J it it G=XAL rmw �ll The General Fund is used to account for all revenues and expenditures of the i City which are not required to be accounted for in other special purposs funds. V1 1 I CS , . 1 qG 1 i I SCHEDULE B-1 ' f CITY OF HUNTINGTON BEACH GENERAL FUND COMPAkATIVE BALANCE SHEET j .Tune 30, 1986 and 1985 i ASSETS i 1986 1985 ••� Cash and investments $ 9.401,307 $ 11,667,648 Taxes receivable 486,185 473,441 Accrued interest receivable 51,763 73,280 Accounts receivable 344,429 460,426 Due from other agencies 150,218 855,915 Due from other funds 6,788,235 1,926,495 Deposits and other assets 179,200 358,842 TOTAL ASSETS $ 17,401,337 4__15.816,047 �+ LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable $ 1,180*524 $ 1,169,66b Accrued payroll 1,9339167 19600,646 Deposits 558,628 689,785 Deferred revenue 1,2981538 __ 709j873 ' TOTAL LIABILITIES 4.970.857 4,169,970 FUND BALAN'-,&s Reserved for encumbrances 1,237,826 2,2751115 Reserved for long-tear receivables 5,489,697 1,372,206 � .� ReserveJ for other fund deficits 2,080,140 2,248,962 Reserved for City Council projects 25,000 25,000 Unreserved/undesignated 3 ,597,817 51724,194 i 1 TOTAL FUND BALANCE 12,430,480 _ 11,646,077 TOTAL LIAIiILITTES AND FUND BALANCE $ 17,401j337 $ 15=E164,047 i � 1 i1 1 1 -37- LU4� SCHEDULE 3-2 CITY OF HUVTINGTON BEACH GENERAL FUND P1 i STATEMENT OF REVi.11UES, EXPENDITURES AND CHANGES 1N FUND BALANCE - BUDGET AND ACTUAL ,n For the year ended Juue 30, 1986 With comparative totals for the year r:nded June 30, 1985 1986 Variance - •^ Favorsble 1985 Budget Actual (unfavorable) Actual REVENUES: �. Property taxee $ 20,003,000 $ 18,456,192 $(1,546,808)$ 17,073,983 Other taxes 26,490,C00 27,622,057 10132,057 25,923,113` Licenses and permits 3,182,500 3,042,450 (140,050) 3,591,493 Fines, forfeitures, and r- penalties 2,131,100 1,973,670 (157,130) 26093,975: From use of money and property 4,213,200 3,7820431 (430,769) 30899,972 From other agencies 6,107,900 7,125,470 1,017,570 5,953,540-- Charges for current rervices 2,509*400 2,525,401 16,001 2,202,185, , Other $76,500 7.156484 (141,M) 364,�156 TOTAL REVENUES 65,513,500 651263,155 (250,345) 61,102,417,-„ EXPENDITURES: Current: City Council 88,708 90,029 (1,321) 128,635 City hdministrator 534,314 488,064 46,250 633,514 '` City Treasurer 298,037 286,648 11,389 2679882 , City Attorney 645,475 644,685 790 806,146 City Clerk 143,625 163,608 (19,983) 1940834 .-- Administrative Servicer 2,718,975 2,600,737 118,23D 2,558,796 Developtert Services 1,669,686 1.773,596 96,090 1,759,542 "' Fire 10,102,772 10,236,204 (133,432) 9,469,458 w Police 19,241,487 18,729,315 512,172 17,114,924 Community Services 5,917,207 5,585,738 331,469 5 169 351 ' Public works 15,766,862 14,911,530 855,332 13:625:016 Non-departmental 8,091,928 6,795,596 1,296,332 4,8679215' i Capital outlay 2,295,469 2*1860S20 108,949 _ 3,098,315 TOTAL EXPENDITURES 67,714,545 649492,270 _ 3.222,273 �5966930628 EXCESS OF REVENUES OVER r (UNDER) EXPENDITURES (_2.20:,045) 770,885 2,971_,930 1,408,789 OTHER FINANCING SOURCES (USES): "I Operating transfers to 1,200,000 ?,221,368 21,368 2,795,907 Operating transfers out (1 ,423,950) (1,423,950) - (1,423,950).'� Proceeds of long-term debt 216,100 � 216,100 TOTAL OTHER FINANCING SOURCES (USES) (7,850) 13,518 21,368 14371.957 • • EXCESS OF REVENUES AND OTHER SOURCES MAR (UNDER) EXPENDITURES (2,208,895) 784,403 2,993,298 2,780,746 FUND BALANCE - BEGINNING OF YEAR 11,646,077 11,646,077 - 10,382,894 Residual equity transfers in - - - 682,437 `• f Residual equity transfers out - - (2�20011000) i FUND BALANCE - END OF YEAR $ 92437,182 i 12,430,480 $ 2,993,298 $ 11,646,077 ;�. 1� -38- .t ;•- .'..'''1' "+ :�) Yee. fkt!dYr�1+1 .,f ';j .,r;Y �'i"�•%� .'.( �j�tl ,�'.� ;•` r'' r'(?.'.• "/':r Y'' �Y�'.{y,t .�i''!,t' .t t'{'1,�yx T' ,Ti.;i:A,:•.Y�` J.•i�T` �e J,e r t., � � .IY�� � `j f. •i.,� t':f,•, '� ;�/�•�` .c .`..r.i..f' 9 .,..yi' ��.—.L.a...,L.':�...5---� '�f MUM M 1 SPSCM REVEUUX VMS Gas Tax - This fund accounts for revenues and e=pendituree apportioned under the Street and Highways Code of the State of California. Expenditurns may be made for any street-related purpose allowable under the Code. Sewer - This fund is uaed to account for fees received from developers to be uued for new sewer facilities. Planned Local br3inage - This fund is used to account for fees received from developers to be expended on the Cityn drainage aystem. Federal Reverue Sharing - This fund is used to account for the receipt and dispooition of revenue sharing entitlemento. Public Communications - This fut:d is used to account for monies received from cable television rights granted within the City limits. These monies must be expended on coununity-orlenc public television. Gra.atr - This fund accounts for grant mo-M es received from federal~ state and county agencies not accounted for in other funds. Expendi`ures for these monies are restricted to the granting agency's requirements. Park Acguisitiun and Develogment - This fund is used to account for fees received from -, developers to develop the City'; park ayatrm. I 1� ter , t !� r +,; �X �/�;•, + , �., yk qq,5,,5 } { 4'' •jjl, �.-,.rt'; rt!'�Fi'� "j 'T!.:I,.i, �f •! ..r��f,TTda �"+ r 'w ;J t � , .„# t '1 I •'r,Y�4'�j. i .,,J+t ',!,i .i` a}•" ' � ! YM,x I Yry.;.�'.•'�: r. tii 1 '7.�r; r••{j'�,•� " P ^,f'1� y, +G��' � ;{,: r rr,� r ° ^ • j.,.• , r• r,p%':75; Srl.' r.. +� ,, � ° 9r.•' i. 4 d,r IN �I • ,, ,{,I;4';i"f ..t✓...r^ r.. ., r r •.�J��+tr.{ . ,J.` � [ r'I' J r-:r k ��',Ip.', i�,� rl� �y�/�'!I �.�,. '��,� r r, �' ' '.j� l +1�. .,' k� Iro-4 �+ fl r'� :} .l.f� ,� - `+,!"�' I,' ; •°rr r.:r,.fi/^,.,l.l�l. ,� � ;S.L+y ,ir,ry r,l •,�•,k.,y�,�:Rrti'. •I +1,.f 1rJ�i+,. . '.,�. ;.1.::1-it .�:.L:��..,!.:.,.....:..:L!:,i_._:..,��......«.....:.t.::«.___.t:s..�:�.i..',..«1,'.�y...L]�J.'r'� i_:+.a...c....,:..::���.;c'.•IG+' - —:—..•»--: .:...•.., CITY OF HUNTINGTON BEACH I P• SPECIAL REVENUE FUNDS COMBINING BALA14CE SHERT June 30, 1996 With comparative totals ,cur June 30, 1985 Planned Federal Local Revenue ASSETS Gas Tax Sewer Drainage Sharing r' Cash and investments $ 4,576,131 $ 4,073,069 $ .1,160,704 $ 287,258 Accrued interest receivable 22,080 19,657 15,250 - Accounts receivable - - - - Due from other agencies 2,559 121,952 - 304,217 Due from other funds - 47,804 79,638 - TOTAL ASSETS $ 4,600,770 $ 4,263,282 $ 3,255,592 $ 591,475 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 99,306 $ 768 $ 154,952 $ - Accrued payroll - - - - Deposits - 64,408 - - Deferred revenue - 47,804 79,638 - Due to other funds - - - TOTAL LIABILITIES 99,306 1136000 234,590 FUND BALANCES: Reserved for encumbrances 220,554 40,826 214,217 - Reserved for long-term receivables - - - - Resr:: ved for reimbursement agreements - 45,419 711,A3 - Unreserved: Designated for subsequent years expenditures 1 ,954,650 283,200 - - Undesignated 2,3262_2.60 3*7800837 2,0952442 5919475 TOTAL FUND BALANCES 4,501,45r3 4,150,282 3,021,002 591,475 TOTAL LIABILITIES AND FUND BALANCES $ 4160O,770 $ 4,263,282 $ 3,255,592 $__591 475 -39- SCHEDULE C-1 i i I I Park ` AcquLsition Public and Torals Communications Grants Development 1986 1985 $ 54,303 $ 350,542 S 1,015,518 $ 13,518,325 $ 13,250,052 283 856 4,912 63,038 79,738 - - - - 873,622 - 60,684 137,549 626,961 479,641 • 1,064,483 3,932,680 5,124,605 4,735,628 I 5$ 4.586 $ 1,476,565 $ 5,090,659 $ 19,33Z�929 $ 19,_U6,781 i i $ 2,307 $ 135,411 $ 54,496 $ 447,260 S 390,804 5,430 10,617 1,616 17,663 15,260 - 1,000 1,000 66,408 65,408 - 3,932,680 4,060,122 3,671,145 -� - - 369,136 7,737 147,028 3,989,792 - 435912453 4,511,833 4,109 355,920 134,273 969,899 1,516,775 - 1,064,483 137,549 1,202,032 1,064,483 ' I • - 756,762 - -•' - - 639,599 2,377,449 1,150,431 424740 (90,866) 189,446 �. 8,935,334 11-175,259 46,849 1,329,537 1,100,u67 14,741,476 14,906,948 54,586 $ 1,476,555 $ 5,090,659 19,332,929 $ 19,418,7E1 i i `�� -40- CITY OF 11UINTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES 1N FUND BALANCES •— 'For the year ended June 30, 1986 ' With comparative totals for the year ended June 30, 1985 Planned Federal r- Local Revenue: ; Cas Tax Sewer Drainage Sharing REVENVESs Licenses and permits $ - $ 365,207 $ 143,686 $From use of money and property 341,392 244,695 275,083 - From other agencies 3,978,050 - 192,900 1,366,475 Charges for current services - - w TOTAL, KZVEhUES 4,319_,442 609.902 611,669 1,366, Z5 EXPENDITIIRBS i Current- City Adteinistrator - - - Community services - - - - Fire - Police - - - Public works - 133,9R9 - - Housitig and Community Develrpmert - - Capital outlay 2,121.048 - 269,081 TOTAL. EXPENDITURES 2,l21,048 1336999 269,081 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2�198.396 _475,913 342,588 113661475 OTHER FINANCING SOURCES (USES): Operating transfers in - - - - Operstiag transfers out (11221.368) - -� (775,000) TOTAL OTHER FINANCING SOURCES (USES) (11221,368) - (775,000) EXCESS OF REVENUES AND A11D OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 977,026 475,913 342,588 591,475 FUND BALANCES - BEGINNING OF YEAR 3,524,438 3,674,369 2,678,414 - Prior period ed justments - - - Residual equity transfers in - FUND BALANCES - END OF YEAR 4,501,464 $ 4,150,282 $ 3.021,022 591,475 -41- f 76 Y NMI SCHEDULE C-2 Park ~' Acquisition Public and Totals Co=unicationd _ Grants Development 1986 1985 700,23? $ 1,209,130 $ 2,371,918 7,680 140,490 7.j6,683 1,246,023 1,240,579 -• 1 480 166 - 7,017,591 6,934,804 175,434 - - 175,434 59,239 183,114 1162n.65b 936,920 9,648,178 10,606,540 � r --, 141,826 - - 141,826 97,452 - 10,030 72,731 82,761 117,597 150506 - 15,506 24,376 - 15,303 - 15,303 7,718 - - - 133,989 26,494 - 342,545 - 342,545 661,965 _27,093_ 1,350,564 5•,317,566 9,n85,352 4,7181986 168,919 1,733,948 5j390,297 9,817,232 5,654,588 14,195 (11312"M (4,453.377) (169,104) 44951,952 - - 2,000,000 2,000,000 628,309 -� - - - (1,996,368) (3,424,2_16) - - 2,000,000 31632 ( j795�907) 14,195 (113,292) (2,453,377) (165,472) 2,156,045 ,.,.; 32,654 1,442,829 3,554,244 14,906,948 16,011,365 - - - - (3,460,462) - - - _ - 200,000 46,849 $ 1,329,537 $ 1,100,867 $ 14,741=476 14 90 ..948 -42- SCHEDULE C-3 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ender! June 30, 1986 GAS TAX Variance - Favorable Actual e Budget ua (Unfavorable) ) REVENUE5: From use of money and property $ 270,000 $ 341,392 $ 71,392 From other agencies 3,546,000 3,978,050 432,050 TOTAL REVENUES 3,816,000 41319,442 503,442 r EXPENDITURESs Capital outlay 5,386,467 2,I211048 3,265,419 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (1,570,467) 2,198,396 3,768,863 OTHER FINANCING USES: Opetating transfers out (1,200,000) (1,221,368) (21, o) EXCESS OF REVENUES OVER (UNDER) I EXPENDITURES AID OTHER USES (2,770,467) 977,026 3,747,493 FUND BALANCE - BEGINNING OF YEAR 31524,436 3�524,438 - FUND BALANCE - END OF YEAR $ 753,971 $ 4,501,464 3 L747,493 SEWER REVENUES: Licenses and permits $ 290,000 $ 365,207 $ 75,207 From use of money and property 90,000 � .244,695 164,695 - TOTAL REVENUES 330=000 609,902 239,902 EXPENDITURES: Public outlay _(1,643,427)_ (133,989) 1,509,,438 EXCESS OF REVENUE OVER ('UNDER) EXPENDITURES (1,263,427) 475,913 1,749,340 FUND BALANCE - BEGINNING OF YEAR 3,674. 369 3,674,369 FUND BALANCE - END OF YEAR 2,410s942 $ 4,150,282 $ 1,749,340 +� (CONTINUED) l� r -43- • I SCHEDULE C-3 CITY OF NUNTINGTON BEACH COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CIIANCES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended .Tune 30, 1986 I i PLAN?IEDD LOCAL 2 `AINAGE Variance - Favorable Budget _ Actual (Unfavorable) REVENUES: Licenses and permits $ 250,000 $ 14306d6 $ (106,314) From use of money and property 197,000 2759083 78,083 From other agencies 200,000 1921900 _ (7�100) TOTAL REVENUES 6471000 611,669 (35,331) EXPENDITURES: Capital outlay 1,079,52b 269,081 810,4447„ EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (432,528) 342,588 775,116 FUND BALANCE - BEGINNING OF YEAR 2,678,414 2,678,414 - 1 FUND BALANCE END OF YEAR $ 2,245,886 $ 3,021,002 $ 7751116 FEDERAL REVENUE SHARING REVENUES: From use of money and property $ 43,000 $ $ (40,000) From other agencies 1,510,000 1,366,475 (143,525) 1 'DOTAL REVENUES 1,550,000 1,366A;475 (183,525) LxL OTHER FINANCING USES: ( : Operating transfers out (775,000) (775,000) EXCESS OF :.LVENUE OVER OTHER USES 775.000 591,475 (183,525) FUND BALANCE - BEGINNING OF YEAR - - - FUND BALANCE - END OF YEAR $ .- 775,000 $_ 591.475 $ (183,525) t (CONTINUED) -44- Y SCHEDULE C-3 CITY OF HUNTINGTON REACH SPECIAL REVENUL FUNDS COMBINING STATEKENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1986 PUBLIC COl1MUNICATIONS Variance - Favorable SudgEt Actual (Unfavorable) REVENUES: Charges for current services $ 193,000 $ 175,434 $ (17,566) Use of money and property 5,000 7,680 21680 TOTAL. REVENUES 198. 000 183.114 (14,886) EXPENDITURES: City Administrator 126,379 141,826 (15,447) Capital outlay 40,241 272093 13,148 TOTAL EXPENDITURES 166,620 168,919 (21299) EXCESS OF REVENUE OVER EXPENDITURES 31,380 14,195 17,185 FUND BALANCE - BEGINNING OF YEAR 32,654 32,654 FUND BALANCE - END OF YEAR $ 64,034 $ 464849 $ 17,185 OTHER GRANTS REVENUES: From use of money and property $ 26,000 $ 140,490 $ 114,490 From other agencies _ 1,475,000 1,4801166 5,166 TOTAL REVENUES 1,501,000 1,620,656 119,656 EXPENDITURES: a Current: Development Services 15,269 15,506 (237) Police 10,282 15,302 (5,021) Commanity eervices 11,737 10,030 1,707 Public works 1185 - 185 Housing and Community Development 205,493 342,545 (137,052) Capital outlay 4,414,666 1,350,564 3,065,102 TOTAL EXPENDITURES 4,658,632 1,733,948 2,924,684 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (3,157,632) (113,292) 3,044,340 _ FUND BALANCE - BEGINNING OF YEAR 1,442,829 1,442,829 - F1!ND BALANCE - END OF YEAR $(1,714,803)$ 1.329,537 $ 3,0441340 (CONTINUED) /?/ •45- �- ,.. f� SCHEDULE C-3 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND "! CHANGES IN FUND BALiQ'CES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1986 i PARK ACQUISITION AND DEVELOPMENT '~ Variance - Favorable Budget Actual (Unfavorable) REVENUES: Licenses and permits $ 2,103,000 $ 700,237 $ 550,237 From use of money and property 150,000 236,683 (1,8662317) TOTAL REVENUES 2,253,000 936,920 (1,316,080) EXPENDITURES: Community Services 132,031 72,731 59,300 J Capital outlay 6,165,931 51317,566 848,365 TOTAL EXPENDITURES 6,297,962 5,390,297 907,665 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (4,044,962) (4,453,377) (408,415) OTHER FINANCING SOURCES: Operating transfers in 2,025,000 29000y000 (25,000) EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES (2,0191962) (2,453,37') (433,415) FUND BALANCE - BEGINNING OF YEAR 3,554,244 3.554,244 FUND BALANCE - END OF YEAR $ 1,534,282 $ 1,100,867 $ (433,415) i - I I + (CONTINUED) I ri -46- I / t ta. i Fla SCHEDULE c-3 CITY OF IIUNTINGTON UF:ACII SPECIAL. REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) i For the year ended June 30, 1986 TOTALS Variance - Favorable _ Hudget Actual (Unfavorable) REVENUESs Licensee and permits $ 2,643,000 $ 1,209,130 $(1,433,870) From use of money and property 778,000 1,246,023 468,023 From other agencies 6,731,000 7,017,591 286,591 Charges for current services 193,000 175,434 (172566) r. TOTAL REVENUES 10,345,000 9,648,178 (696,822) EXPENDITURES: Current: Administration 126,379 141,826 (15,447) Community Services 143,768 82,761 61,007 Fire 15,269 15,506 (237) Police 10,282 15,303 (5,021) Public works 1,643,612 133,989 1,509,623 Housing and Community Development 205,493 342,545 (137,052) Capital outlay 17,087,833 94085,351 8,002,482 TOTAL EXPENDITURES 191232,636 9,817,281 9,415,355 -" EXCESS OF REVENUE OVER (UNDER) EXPFNDITURES (8,887,630;) (169,103) (St718,533) OTHER FINANCING SOURCES (USES): Operating transfers in 2,025,000 2,000,000 (25,000) Operrting transfers out (1,975,000) (1,996,369) .__ (211369) TOTAL OTHER FINANCING SOURCES (USES) 501000 3,631 (46,369) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (8,787,636) (165,472) 8,622,164 11UND BALANCE - BEGINH'NG OF YEAR 14,906,948 14,906,948 FUND BALANCE - END OF YEAR y 6,119,312 $14,741,476 $ Rt622,164 -47- r • DINT SERVICE TUNDS 1970 Park Bonds - This fund records the accumulation and distribution of monies to meet the debt service requirements of the City's 1970 Park Bonds, a general obligation bond. Redevelopment Agency - This fund records the accumulation and disbursement of monies to meet the debt service requirements of thu Redevelopment Agency. Public Facilities Corporation - This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Huntington Beach Public Facilities Corporation. Parking Authority - 'this fund records the ac,7umulation and disbursement of monies to meet the debt service requirements of the Parking Authority Revenue Bonds. t CITY OF HUNTINGTON PEACH DEBT SERVICE FU:iDS COMBINING BALANCE SHEET June 30, 1906 With comparative totals for June 30, 1985 1970 Park Bonds ASSETS: Cash and. investments S 55,892 Cash with fiscal agent - Taxes receivable 3,458 Interest receivable 269 TOTAL ASSETS 59,619 r FUND BALANCES: Reserved for Debt Service 59,619 -48- w S CITED ULE-D-1 •w i i 1 Public Redevelopment Facilities Parking Totals Agency Corporation _Authority__ 1985 1984� $ 487,432 $ - $ - $ 543,324 $ 110,505 - 5,010,619 1,222,621 6,233,240 5,657,937 -" 10,293 - - 13,751 9,441 49,705 24,681 74,655 114,972 -� 497,725 5,060,324 $ 1,247,302 6,864,970 $ 51892,855 $ 497,725 $ 5,0601324 $ 1,247L302 $ 6,864,970 $ 5,892,855 . �� �i(�yaio � �r'�.��t�i�'a�lt�`�i'�i�i�f�i"�'.%�I��NtIISBI '✓C4Y�f':�'+�'�..id/�ItT�Jr4".::� a:1��44t'�LIF�YY.(�.�7�I€'�S��i�i��lr:���i.. .:�� :1 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS COIJBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND HM—ANCES For the year ended Jiine 30, 1986 With comparative totals for June 30, 1985 r+w 1970 Park Bonds REVENUES: Property taxes $ 466,032 From use of money and property 6,179 TOTAL REVENUES 472,211 EXPENDITURES: Principal retirement 260,000 Interest and fiscal charges 2061346 TOTAL EXPENDITURES 466,346 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,865 OTHER FINANCING SOURCES (USES): • Operating transfers in - Operating; transfers out - TOTAL OTHER FINANCING SOURCES (USES) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES 5,865 FUND BALANCES - BEGINNING OF YEAR 53,754 Residual equity transfer out - FUND BALANCES - END OF YEAR $ 59,619 i 1 i�d -Sa- .M f SCHEDULE A-2 i i A. j i Public Re.levelopment Facilities Parking _ Totals ' AFency Corporation Authority 198E 1985 "1 $ 404,102 $ - $ - $ 870,134 $ 549,312 i 26,714 395,854 98,859 _ 527,606 624,810 --� 430,816 395,854 _ 98,859 1�397,740 1,174,122 590,OUO 110,000 960,000 960,000 622,204 .� 58,4Q0 886,950 936,104 1,212,204 168,400 1,846,950 1,896,104 430,816 (816,350) (69,541) (4i-91210) (721,982) - 1,253,900 170,050 1,423,950 1,468,575 - (2t62.;) (2,625) 1,253,900 167,425 114211325 1,468,575 i 430,816 437,550 97,884 972,115 746,593 66,909 4,a22,774 1,149,418 5,892,855 15 ,859,901 (713,639) $ 493,7!5 $ 5,060,324 $ 1 ,247,302 $ 6,866 ,970 $ 5r892 8855 I i i SCHEDULE D-3 CITY OF HUNTINGTON BEACH DEBT SERVIC2 FUNDS ^ COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year endaa June 30, 1986 .- 1970 PARK BONDS Variance - Favorable Budget Actual (Unfavorable) REVENUES: -- Property taxes $ 470,000 $ 466,032 $ (3,968) From use of money and property - 6,179 6.1179 TOTAL REVENUES 470,000 472,211 2,211 r- EXPENDITURES: Principal retirement 260,000 260,000 - �- Interest 2151000 706,346 8,654 TOTAL EXPENDITURES 475,000 466,346 8,654 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (5,000) 5_1865 104865 T FU11D BALANCE - BEGINNING OF YAAR 53.754 53,754 - FUND BALANCE - END OF Y1;AR 48 754 59 619 10,865 REDEVELOPMENT AGENCY REVENUES: Property taxes $ 350,400 $ 404,102 $ 13,702 i From use of money anti property 64,000 26,714 (37,286) 'rOTAL REVENUES 4544400 430,816 (23,584) FUND BALANCE - BEGINNING OF YEAR 662909 66,909 - FUND BALANCE - END OF YEAR $ 5211309 $ 497a725 (23 584) (CONTINUED) CITY OF NtINTIHGTON BEACH SCHEDULE D-3 DEBT SMRVICE FUNDS I COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ..� CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year Wed Juae 30, 1986 I PUBLIC FACILITIES CORPORATION Variance - Favarable Bjdget Actual (Unfavorable) ..� REVENUES: From use of money and property 550,000 $ 395.854 (154,,,146) EXPENDITURES: Principal re-j.;. .ent 590,000 590,000 - Interest 623,306 622,204 1,102 TOTAL EXPENDITURES 1,213,306 1 ,212,204 13102 EXCESS OF REVENUE OVER (UNDER) + EXPENDITURES (663,306) (816,350) (153,044) OTHER FINANCING SOURCES: Operating transfers in 1,253,900 1r253,900 - EXCESS OF REVENUE OVER i (UNDER) EXPENDITURES 590,594 437,550 (153,044) FUND BALANCE - BEGINNING OF YEAR 4,6223774 4,622,774 - FUND BALANCE - END OF YEAR $ 5,2131368 $. 5,060,324 (153 044) I - -. i PARKING AUTHORITY REVENUES: From use of money cnd property 100,000 $ 90.859 (1,141) EXPENDITURES: Principal retirement 110,000 110,000 Interest 58,400 58 4-00 - ! 'TOTAL EXPENDITURES 168,400 168,400 - j EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (68,400) (69.541) (1,141) 4 OTHER FINANCING SOURCES (USES): Operating transfers in 1i0,050 170,050 i ' � Operating transfers out (2,625) (21625) MESS OF REVENUES AND OTHER _ SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 99,025 97,884 (1,141) j + FUND BALANCE - BEGINNING OF YEAR 1,149,418 111491418 - ii FUND BALANCE - END OF YEAR � $ 11248,443 �S 1,247�302 3 (11141) 1 r (CONTINUED) $� -53- SCHEDULE D-3 CITY OF HIrATINGTON BEACH DEBT SERVICE FUNDS r- COMBINING STATEMENT OF REVENUES, EXPENDITUI AND CHANGES IN FUND BALANCES - BUDGET AND ACWAL -- (Continued) For the year ended June 30, 1986 TOTALS Variance - Favorable r— Budget Actual (Unfavorable) REVENUES: Property taxes $ 860,400 g 870,134 $ 9,734 _ From use of honey and property 714,000 527,606 (186,394) TOTAL REVENUES 1,574,400 1,397,740 (176,660) EXPENDITURES: Principal retirement 960,000 960,000 - Interest and fiscal charges — 8964706 886,950 99sa6 _. TOTAL hXPENDITURES 1,856,706 1,846,950 9,756 EXCCSS OF REVENUE OVER (UNDER) r EXPENDITURES (282,306) (449,210) (166,904) OTHER FINANCING SOURCESr Operating transfery in 11421,325 1,4214323 - EXCESS OF REVENUE AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,139,019 972,115 (166,904) FUND BALANCE - B8GINNIFG OF YEAR 5,892-,855 528920855 - FUND BALANCE - END OF YEAR $ 7,031,874 , 6,864,970 $(166,904) I -54- i I ^' I ; 1 i i -'' 4:11?'ITAL PROJECT$ Pans Redevelopment Agency - This fund accounts for cquisition and construction activity in the five Redevelopment P.oject Areas. Low Income iiousigg - This fund accounts for acquisition and construction activity for low-income hausina. As prescribed by the California ilenith end Safety Code, 20% ;if R: fevelopmr_nt Agency tax increment revenue is set aside in this fund for the purpose of low-income housing developuent. I Public Facilities Corporation - This fund accounts for capital improvements to the Civic Center and Central Library Complexes. Parking Authority - Thia fund accounts for capital improvements ■adt for off- street perking facilities. l a CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1986 With comparative totals for Jure 30, 1985 Redevelopment Agency r• ASSETS Cash and term investments $ 1,704,176 Cash with fircal agent - Acew., %to receivable 6,509 Accrued interest receivable 1,550 Due from other funds - TOTAL ASSETS $ 1t712,235 �— LIABILITIES AND FUND BALANCES LIABILITIES: Acccants paysble $ 147,155 Accrued payroll 7,983 Due to other !undo - Deposits 25_,,0C11 TONAL LIABILITIES 180,138 - • FUND BALANCES (DEFICITS): Reserved for continuing projects 1,532,097 Unreserved _ - TOTAL FLND BALANCES (DEFICITS) 1,532,097 TOTAL LIABILITIES AND FUND BALANCES 712t235 -55- i ~� SCHEDULE E-1 ' Low Public Income Faciaities Parking Totals Housing CorQoration Authority, �1986 1985 124,538 $ - $ 173,830 $ 2,002,544 $ 165,605 - 782,238 - 782,238 728,915 - - Er,509 1,451 • 8,50- 838 10,890 5,293 ► _ _ � 6,192 124`538. $ 790,740 $ 174,668 $ 2,802,181 & 907,457 - 7,983 5,359 _ 6,192 25 O,' 0 - - 180,`138 11,551 •-� 124,538 790,740 174,668 2,622,043 889 ,322 - - - - 6,584 124,538 790,740 114,668 �2,622,043 893,906 •�� L 1244538 $ 790,740 174,663 $ 7/8022181 0907,457 rrw I I I T- CITY OF NUNTJNGTON .1EAC11 CAPITAL PROJECTS FUNDS i COMBINING STATEMENT OF REVENUES, 3XPPNDITURES AND CHANGES IN FUND BALANCES r.. For the year endad June 30, 1966 With comparative totals for June 30, 1985 Now r r+ Redevelopment � • REVENUES: Agency, Property taxes $ - From use of money and prt. .4rty 82j139 TOTAL REVENUES 82,139 EXPENDITURES: Housing and Community Development 1,709,404 '- Capital outlay r 519.379 TOTAL. EXPENDITURM 2,228,783 ._ EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2 2146,644) OTHER FINANCING SOURCES (USES): Operating transfers in - Advances from General Fund 4,913,841 Proceeds from Certificates of Participation - Operating transfers out (1,225,000) TOTAL OTHER FINANCING SOURCES (USFS) 3,6881841 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 1,542,197 FUND BALANCES - BEGINNING OF YEAR (10,100) Residual equity transfers out - FUND BALANCES - LAND OF YEAR L 097 -57— a 4 r SCHI RULE E-2 i l 1 i i I I i --� Low Public Income Facilities Parking Totala _ Housing Corpo Rtion Authority 1986 1985 I - $ 101,318 $ - $ - $ 101,318 a 15,026 6,53b 57,518 15,943 162,136 130,046 ^107,854 57,518 15,943 _ 263,454 145,072 --1 - - - 1,709,404 304,419 r - _ 519L379 56,418 -__ 2,22f),783 360,837 107,854 57,518 (1,965,3129) (215,765) 2,625 2,625 - - 4,913,841 237,336 - _ (1l225,000) (&4,625) - _ - 2,625 3,691,466 192,711 107,854 57,516 18,568 1,72C,137 (23,054) 16,684 733,222 156,100 895,906 6,1110,057 (5,261,097) 124 538 $ 790,740 _ 174 6.if1 $ 2,622,043 $ 8951906 i -- -58- LV ,ter 1 11 r► r r � larr.hiss FUNDS II r, Water UtiliLy - This accounts for the City's water service operations to residents and busineares. Headovlark Golf Course - This fund is used to account for the operations of a City-awned golf course leas-id to a private corporation which pays the City a rental amount based on the operntion's total revenues. Emerald Cove Houses - This fund is used to account for the operation of a senior citizen apartwant conplex. i M� I l 1� ti! I1 I SA CITY OF H".NTINCTON BEACH ENTERPR139 FUNDS COMBINING BALANCR SKEET Junt 30, 1986 With comparative totals for June 30, 1985 Water Utility ASSETS CURRENT ASSETS: Cash and term investments $ 4,264,193 Accounts receivable 1,283,623 Accrued interest receivable 21,560 Due from other funds 24,428 T ' Prepaid expenses TOTAL CURRENT ASSETS 5,591,804 KESTRICTED ASSETSs Cash with fisca' agent 752,952 PLANT, PROPERTY AND EQUIPMENT (AT XST)s Land 410,721 .- Buildings and improvements 971,219 Machinery and equipment 44,656,221 Construction in process 46,038,161 Less accumulated depreciation (18,440,157) TOTAL PLANT, PROPERTY AND EQUIPMENT 27,5h7s404 TOTAL ASSETS $ 33,942,160 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ 918,002 Accrued payroll 62,428 Deferred income Accrued interest 6,566 Due to other funds - Depoairs 731,192 - Current portion of long-term liabilities 215,807 TOTAL CURRENT LIABILITIES 1,933,995 LONG-TERM LIABILITIESs Bonds payable 1,053,000 Note payable 326 ,355 Compensated absences payable 103,109 Certificates of Participation payable, net of discount of $102,367 - Less current portion (215,807) TOTAL LONG-TERM LIABILITIES 1�9261,657 TOTAL LIABILITIES 31195,652 FUND EQUITYs ' Contributed capital 30,841,880 Retained earnings: Reserved for Debt Service - -- 'Inreserved (95,372) TOTAL FUND EQUITY 30,746,508 TOTAL. LIABILITIES AND FUND EQUITY 33,942,160 1 '1 + SCHEDULE F-1 1 i I I Meadowlark Emerald !I Golf Cove Totals Course Housing„F 1986 1985 452,812 $ 984,073 $ 5,699,078 $ 6,231,382 I - - 1,283,623 542,406 I` 2,185 9.533 33,278 52,915 .� 24,428 22,208 - - - 123,214 ` 454,997 993,606 7,0401407 6,972,125 1 _ 739,418 1,492,370 12459,483 3,052,004 1,288,670 4,751,395 4,751,395 j 260,821 3,968,755 5,200,795 1,232,039 ! 359,797 - 45,016,018 43,498,545 3,879,880 ` 3,672,622 5,257,425 54,968,208 53,361,859 (436,900) (79,375) (18,9571032) (17,699,091) 3,235,722 5,178,050 36,011,176 35,662176e $ 3,6901719 $ 6,911,074 6 44,543,953 $ 44,094,376 $ - $ 26,233 $ 944,235 $ 941,559 - 62,428 40,199 - - - 22,208 41,562 36,416 84,544 90,405 • 111,411 111,417 321,000 - - 24,150 755,344' 781,110 25,312 241,119 227,656 66,874 198,210 2,199.079 2,424,137 1,053,000 1,111,000 1,781,261 - 2,102,616 2,171,229 - - 103,109 129,705 - 4,497,633 4,497,633 4,484,837 ` (25,312) - (241,119) (227,656) 1.755,949 _ 4,497,633 7,515,239 7,669,115 1,822,823 4,695,843 9,714,318 10,093,252 1,267,324 2,121,000 34.230,204 32,935,226 t� - 94,231 94,231 570,449 _600,572 - 505,200 495,449 1,867,096 2,215,231 _ 34,29,635 34,001 124 {� 074 911 3,690,719 6_ $ , $ 44,543,953 $ 44,094t376 + -60- r. CITY OF HUNTINGTON BEACH { ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES ! AND CHANGES IN RETAINED EARNINGS i i For the year ended June 30, 1986 With comparative totals for year ended June 30, 19B5 t Hater OPERATING REVENUESt Utility Water sale! $ 7,912,216 Golf course rentals - Apartment rentals - Other revenues 260,421 TOTAL OPERATING REVENUES 8,172,637 OPERATING# EXPENSES, Water purchases 2,80 1 891 Administration 211,5$6 Engineering 159,919 Production 2,311,984 Maintenance 1,465,697 Contributions to General Fund in lieu of tastes 1,186,132 Water merero 542,825 Depreciation 1.173,616 TOTAL OPERATING EXPENSES 9,933,650 OPERATING INCOME ("LOSS) (11761t013) NON-OPERATING REVENUES (EXPENSES)i Interest income 478,334 Interest expense (53,664) r TOTA1 NON-OPERATING REVENUES (3.XPEMSES) 4242670 NET INCOME (LOSS) (1,336,343) RETAINED EARNINGS - BZGINHING OF YEAR 449,734 Prior Period Adjustment (Note 15) 791,237 RETAINED EARNINGS - END OF YEAR $ (95,372) -61- SCHEAUIM F-2 i i w i q fi . j Meadowlark Emerald ,.� Golf Cove Totals y Couree 1906 1985 r $ - $ $ 7,912,216 $ 7,310,579 216,437 218,437 209,425 - 562,640 562,640 168,525 139186 273,607 197,942 j 218,437 575,826 8,966,900 71886,471 �t - - 22881,891 1,736,542 ' - 151,947 363,533 323,515 - 159,919 203,826 - 2,311,984 2,322,513 - 78,995 1,544,692 1,609,019 - 1,186,132 1,097,165 7 - - 542,825 520,017 32,587 79,375 1,285,578 1,230,361 32,587 310,317 10,276,554 _ 9,042,958 I -' 185,650 2651509 (1,309,054) (1,156,487) 45,065 157,802 681,201 653.771 �(125,792) (449,795) (629,231) (183,524) F� i (80,727) (291,993) 51,950 470,247 105,123 (26,484) (1,257,704) (686,240} � i 49j,449 120,715 1,065,898 1,752,138 191,,237 - ' 1 600,572 S 94,231 599,431 $ 1,065,098 f t 1 t�1 CITY OF HUNTINGTON BEACH ' ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION For the year ended June 30, 1986 With comparative total& for year ended June 30, 19CIP Water Utility SOURCES OF WORKING CAPITAL: Operations: Net income (loss) $(1,336,343) Items not requiring; working capital: Depreciation 1,173,616 Working capital provided by operations (162,727) Contributions from developers 1,294,978 r' Contributions from Redevelopment Agency - Sale of equipment - Reduction in Restricted Assets r-- TOTAL SOURCES OF WORKING CAPITAL 14132,251 USES OF WORKING CAPITAL: Increase in plant, property and equipment, net 1,445,339 Increase in restricted assets 66,892 Decrease in long-term note payable 44,957 Decrease in long-term bonds payable 69,807 Decrease in compensated absences payable 26,596 TOTAL USES OF WORKING CAPITAL 1,653,591 NET INCREASE (DECREAS'S) IN WORKING CAPITAL (521 2) ELEMENTS OF NET INCREASE (DECR%ASE) IN WORKING CAPITAL: Cash and term investments $ (483,020) interest receivable (6,991) Accounts receivable (50,020) Due from other funds 2,220 Prepaid expenses - Other assets Accounts payable (29618) Accrued payroll (22,229) Deferred income 22,208 Accrued interest payable 5,309 Due to other funds - Due to other entities Deposits 25,618 ... Current portion of bond; and not- payable. (11,807) NET IHCRFA3E (DECREASE) IN HONKING CAPITAL $ (521,,340) I SCHEDULE P-3 I I Meadowlark Emerald Golf Cove Totals Course Housing 1986 1985 I $ 105,123 $ (26,484) $(1,257,704) $ (686,24©) 32,587 79,375 1,285,578 1,230,361 137,710 52,891 27,874 544,121 - - 1,294,970 8,922 I - - - 2,121,000 2,770 - 2,770 4,600,000 34,005 34,005 i - i 140,480 86,896 1,3S9,627 7,274,143 191,417 1,636,756 5,302,507 - - 66,892 839,129 25,312 - 70,269 66,570 - - 69,807 160,000 - 26,596 $02 25,312 191�417. 1_,870,320 6j369,008 -, 115,168 $ (104,321) $ (510,693) $ 905,135 $ 116,104 $ (165,388) $ (532,304) $ 1,641,866 168 (12,814) (19,637) 5,957 - - (50,C20) 64,698 2,220 22,208 -� - (136,010) (136,010) 238,377 �-- - - - (32,269) (48) (2,676) (310,458) - (22,229) (8,98G) 22,208 (22,208) 552 209,589 215,450 (35,899) - - - (320,045) 150 25,768 (244,482) (1,656) - (13,463) (3,548) 115,168 $ 104,521 $ (510,693) $ 905,135 OQ -64- v 1 iW i r� I 1 I r 1 .� Imm" SSRVIVI FMMS Self Insurance - This fund accounts for the City's self insurance activities i --, (liability, health and workers' compensation). g ui at Ae lacexent - This fund accounts for the purchase and operation of certain vehiclea .snd equipment leased to City departments. 1 . c 1 r.e ! . 1 i I ; ,I -, SCHEDULE G-1 I C17Y OF HUNTINGTON BEACH ^ INTXRNAL SERVICE FUNDS f COMBINING BALANCE SHEET ^ June 30, 1986 With couFarative totals for June 30, 1985 ^ Self Equipment Totals ASSETS Insurance Replacement 1986 1985 CURRENT ASSET: i Cash and term investments $ 3,562,240 $ 3,115,927 $ 6,678,167 $ 5,384,402 Accounts receivable 14,645 - 14,645 8,498 ^ Interest receivable 17,073 15,036 32,109 32,495 Due from other funds - - - - TOTAL CURRENT ASSETS 3,593,958 361309963 6.724.921 5.425,595 PROPZRTt AND EQUIPMENT (AT COST): Machinery and equipment - 1,944,035 1,944,035 245,339 -'► Accumulated depreciation - (132,023) (132,023)_ (24,012) TOTAL PROPERTY AND EQUIPMENT 1.812,Al2 1.812-,012 221.327 TOTAL ASSETS $ 3,593,958 $ 4,942,975 $ 8,536,933 $ 5,646,722 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ 14,635 $ 14,413 $ 29,040 $ 72,908 Accrued payroll 34,463 - 34,463 24,807 - TOTAL CUR.AENT LIABILITIES _ 49,098 149413 63,511 97,715 LIABILITY FOR SELF-INSURANCE CLAIMS: Workers compensation 2,895,000 - 2,895,000 3,150,000 Health 290,000 - 290,000 290,000 -� General liability 2,440,000 - 2,440,000 1,746,000 TOTAL LIABILITY FOR -A SELF-INSURANCE CLAIMS 5,625,000 - 5R625,000 5 1,86,000 TOTAL LIABILITIES 5,674,098 14,413 5,688,511 512836715 .i FUND EQUITY: Contributions from General Fund - 2,500,000 2,500,000 2,000,000 Retained earnings (deficit)/ unreserved (2080,140) 2.428.562 (348,422) (1,636,993) TOTAL FUND EQUITY (DEFICIT) (2,080,140) 4,928_562 2.848,422 363,007 TOTAL LIABILITIES AND FUND EQUITY $ 3,593,958 $ 4,942,975 8,536,933 $ 5,646,722 4 -65- "l I aI>I SCHEDULE 0-2 CITY OF HUNTINGTON BEACK INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANCES IN RETAINED EARNINGS June 30, 1986 With comparative totals for June 30, 1985 .- self Equipment Totals ^ Insurance Replacement 1986 1985 OPERATING REVENUES: Charges for service $ 5,5431657 $ 1 658.402 . 7,202,059- $ 3,930,147 OPERATING EXPENSES: Administration and general 1,671,408 52,102 1,723,510 1,374,151 Depreciation - 108,065 108,065 24,012 Workers cos:P ensation claims 934,635 - 934,635 1,335,139 Employee medical claims 1,792,779 - 1,792,779 1,780,428 _ Liability claims 1,380,738 - 1,380,730 977,958 ' TOTAL OPERATING EXPENSES 5,779,560 160,167 5,939,727 5,491,688 OPERATING INCOME (LOSS) (235,903) 1,498,235 11263,332 (1,5614541) NON-OPERATING REVENUES: _ Interest. income 394,625 3281458 723,083 590,601 NET INCOME (LOSS) 158,722 1,826,693 1,985,415 (970,940) RETAINED EARNINGS (DEFICIT) - BEGINNING OF YEAR (2,238.862) 601,869 (1,636,993) (666.033) RETAINED EARNINGS (DEFICIT) - END OF YEAR (2 080 140)41 2,429,562 $ 3448.422 $(1 636,993) II � -66- I 1 of ._ - 1 0" SCHEDULE G-3 i CITY Od HUNTINGTON BE►AL'H �sr! INTMAu SERVICE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSI7ION June 30, 1986 With comparative totals for June 30, 1985 a� I Self Equipment Totals _ �+► Insurance Replacement 1986 1985 I 311RCES OF WORKING CAPITAL: operations: ' �n Net income (loss) $ 158,722 $ 1,826,693 $ 1,985,415 $ (970,940) I Items not requiring working capital: Depreciation ` , 108,J65 _lOt1.Q65 _ 24,012 Working capital provided (used) by operations 158,722 1,934,758 2,093,480 (946,928) Increase in self-insurance claim a payable 439,000 - 439,000 719,000 Contribution from General Fund 500,000 590,Oa0 2.000.000 .,, TOTAL SOURCES OF WORKING CAPITAL 597,722 24,4346758 3,0322480 1.772,072 USES OF WORKING CAPITALr Acquisition of fixed asuets 1,698,750 1,698,750 245,339 i NET INCREASE (DECREASE) IN WORKING CAPITAL $ 597.722 $, 736,008 $ 1,333,730 $ 1,: �,733 1 ELEMENTS OF INCREASE (DECREASE) ! IN WORKING CAPITAL: Cash and tens investments $ 545,602 $ 748,163 6 1,293,765 $ 1,486,532 Accounts receivable 6,147 6,147 7,496 ,..•� Interest receivable (1,079) 693 (386) (5,844) i Due from other funds - (25,427) Accounts payable 56,706 (12,848) 43,860 57,044 Accrued payroll (9,656)„_,_____,_ _ (9,656) 6,932 NET INCREASE (DECREASE) IN WORKING CAPITAL $ 597,722 736 008 �1,333.730 $ 1_,526�733 -67- S � Z t+wr . ..r�Q.e...a�r•arr��a Wells i 17 _. AGENCY FUND Employee Deferred P d Compensation - This fund accounts for the deposit of monies —. _ authorized by employees to be Withheld form salaries for payment at a later date. The City retains title to the funds until the employee withr!raws the funds, which may not be done until employment is terminated, or any later date. I r-i y�y I 'q SCHEDULE H-1 CITY OF HUNTINGTON BEACH AGENCY FUND STATEMENT OF CHANCES IN ASSETS AND LIAbILITI$8 June 30, 1986 June 30, June 30, EHPLOYFE DEFERRED COMPENSATION FUND 1085 Additions Reductions 1986 ASSETS: Cash with fiscal agent $ 5,557*056 $ 2,070,691 $ 493,170 $ 7,134,577 { Notes receivable, net of allowance for anaunts unco'l:ectahle 145,606 - 27,716 117,890 Other assets .79,375 - 29,375. ! TOTAL ASSETS 5,732.1037 $ 2,070,691 S 520.886 0 7,281,842 i 1 LIAHILMESs Note payable $ 28,800 $ - $ 300 $ 28,500 5�703,327 1,716,G94 165,989 7�253,342 Eaployee deferred coapeneation TOTAL LIAMITIES 5,732.037 A 1.716.0094 $ 166,289 7.281,842 I i i r r 1 1 i -68- �2 A 1 A 1 �I 1 (;gws L FIM ASSETS ACCOUNT GxdM This group is uned to account for fix. d assets of the City which are, used in the performance of general government functions and are no= accounted for in proprietary fund operations. w 1 . j I ff1 1') I � JJ� Z l rJ '� s SCHEDULE I-I CITY OF HUNTINGTON BEACH �! STATEMENT OF GENERAL FIXED ASSETS i Jun* 30, 1986 I � f GENERI,,' FIXED ASSETS: Land $ 30,864,013 Buildings 25,158,461 Improvements other than buildings 7,582,167 Machinery and equipwnt 9,333,328 Construction in progress ' TOTAL GENERAL FIXED ASSETS 72 9371969 INVE3'1'HENTS IN GENERAL PIXBri ABBEYS FROM: General Fund $ 17,754,282 Special Revenue Funds 13 363 634 Capital Projects Funds 21,216,765 j Donations _ 20,603,288 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 72,937,969 I I I t .! t.7 L3 �� -69- 1 !X EDULE 1-2 CITY OF HUNTINGTON BEACH 4 9 SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1986 Improvements Xachinery Other Than and Function and Activity —.Total Land Building_ Buildings Equipment General Government: City Council $ 7,595 $ - $ - $ 7,595 $ - " City Clerk 5,095 - - 5,095 - City Attorney 3,063 - - 3,063 - CiLy 'treasurer 16,063 - - 16,063 - City Administrator 4,147 - - 4,147 - Tota) General Covernment 35,963 - - 35,963 - _ Administrative Services 1,517,533 - - 1,408,125 109,408 Development Services 81,361 - - 11,578 69,783 Public Safety 8,156,993 - 3,902,434 1,148,749 3,105,810 { Community Services 42,202,020 30,444,562 8,887,107 2,258,669 611,682 Public Works 11,445,607 - 3,289,879 2,719,083 5,436,645 Non Departmental 9,498,492 419,451 9,079,041 - Total General Fixed Assets $72,937,969 $30,864,013 $25,158,461 7,582,167 $9,333�328 ` -70- i CITY OF HUNTINGTON BEACH SCHEDULE 1-3 e" SCHEDULE OF CHANGES IN FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1986 e.� i General General Fixed Assets Fixed Assets July 1 , 1985 Addition* Deletions .tune 30, 1986 General Government: j City Council $ 7,595 $ $ ` $ 7,595 City Clerk 5,095 - - 5,095 �• City Attorney 3,063 - - 3,063 City Treasurer 16,063 - 16,063 City Administrator 4,147 - _ - 4,147 Total General - - Government 35,963 35,963 Administrative Services 1,326,490 198,996 7,953 1,317,533 Development Services 94,350 2,315 15,304 81,361 i •.� Public Safety 7,146,11-2 1,214,801 203,950 8,156,993 � Cosrmunity Services 36,045,107 6,198,550 41,637 42,202,020 Public Works 11,351,719 222,832 128,944 11,445,607 Non Departmental 9,498,492 - - 9,498,492 Construction in progress 1,119,580 - 1,119,580 - Total General Fixed Assets 1 66,617,843 7 837 494 $ 1.517,368 $ 72,937,969 t t� t' -71- t.� i I I GUIRAL LAIC-771M1 DIBT ACCOUW GROUP This group in used to account for City long-term debt not reported in proprietary fund operations or accounted for in Trust Funds. II _. I SCHEDULE 3-1 CITY OF HUNTINGTON PEACH os STATEHENT OP CHANGES IN GENERAL LONG-TERM DEBT June 30, 1986 i Outstanding Outstanding „y June 30, June 30, 1985 Additions Retirements 1986 I 1970 Park Bonds $ 3,425,CLO $ - $ 260,000 $ 3,165,000 ryl Public Facilities Corporatiuc. Leasehold Mortgage Bonds 11,440,00;:r - 590,000 10,850,000 parking Authority Revenue Bonds 1,170,00C - 110,000 1,060,000 California Congtal Conservancy - � Note Payable 208,900 216,100 425,000 Compensated absences 2,958,925 318,944 - 3,277,869 Equipment leases 212,33: 212,331 Due to other funds 5,954,195 1831,b62 11,825,857 Totals $ 2514C-9 A351 _._ 366�70h $ 1.172,331 0 30,663,726 7 i ; 1 ' i -72- r i I i I f ir STATISTIC;. I� II p i 1 i i 1 CITY OF HUNTINGTON BEACH GOVERNHENTAL FUND TYPIS - REVENUES BY SOURCE Lart Ten Fisc Al Years Licenses uses of Fiscal and mines and Haney and Year Taxes Permits Forfeitures, Property 1977 $ 20,949,573 $ -%,3291143 $ 593,325 $ 1,5989632 1978 24,196,061 4,977,744 120,517 199570111 1979 19,580,258 3,841,745 1,00.5,451 2,006,534 1980 24,247,333 41075,945 1,2650038 2,585,767 1981 26,755,632 5,496,256 1,526,072 4,2500129 1982 32,696,273 3*002,807 1,515,914 5,375,601 1983, 36,491,550 3,147,961 1,748,817 4,550,760 1984 39,814,024 5,099,573 1,923,143 6,177,364 1985 43,561,434 5,963,411 2,093,975 59895,407 1986 47,049,701 4,427,014 1,9739670 5,7189196 r-- Satirce: Adminittrative Services Department, City of Huntington Beach 4 Mote: Includes General, Special Revenue, Capital Projects and Debt Service Funds. -73- YAHISIT A A Charges From Other For Current Other Aterncies Services Revenue Total 8,915,766 4 942,760 ; 109,255 36,438,457 100493,618 9389182 168,997 43,456,230 120320,144 950,674 162,735 39,887,541 1 9,294,178 1,158,294 314,760 42,961,317 11,402,686 1,483,964 374,249 53,293,988 91109,290 1,316,278 529,704 53,535,967 7,954,059 2,917,449 1,179,902 57,990,518 9,937,325 2,009,901 1,052,519 66,013,949 12,858,344 2,161,424 364,156 72,928,151 14,143,061 2,525,401 735,484 76,572,527 I C1 �� -74- i ' CITY OF HUNTINGTON BEACH EXHIBIT B GOVERNMTAL FUND TYPES - EXPENDITURES BY FUNCTION (Continued) Last Ten Fiscal Years i Fiscal City City city City Administrative Year Council Administration Treasurer Attorney Clerk Services 1977 $ 65,369 $ 2,532,247 1,176,259 $ 270,244 $ 102,980 $ 931,566 1978 59,403 3,645,700 866,716 296,813 154,415 495,612 1979 37,463 3,759,877 1,352,898 373,891 107,347 541,326 1980 48,409 1,941,152 8. � ',1,840 349,993 163,533 626,152 1981 80,993 402,983 1,027 435,102 143,289 1,681*625 1982 77,403 399,402 137,703 572,251 193,563 2,0590666 ! 1983 97,804 498,373 264,221 629,000 165,076 2,140,377 1984 111,048 480,390 141,158 729,693 163,473 2,362,261 1985 126,635, 730,966 267,882 806,146 194,834 2,558,796 1986 90,029 629,890 286,648 644,685 163,608 2,6000737 Sources Administrative Services Department, City of Huntington Reacb NOTE: Includes General, Special Revenue, Capital Projects and Debt Service Funds. `-� (CONTINUED) 1 w CITY OF HUNTINGTON BEACH GOVERNMENTAL FUND TYPES - EXPENDITURES BY FUNCTION (Continued) Last Ten Fiscal Years Fiscal Aevelopment Comunity Public Year Services Fire Police Services Yorks 1977 $ 1,324,576 $ 4,360,865 $ 7,596,721 $ 3,706,31i $ 4,528,276 1978 1,462,298 4,711,161 8,931,202 4,183,316 4,753,345 1979 1,359,868 5,658,406 9,445,272 3,788,705 4,502,434 1980 1,552,333 6,059,038 10,879,198 2,654,006 5,4429196 1981 1,574,076 6,861,733 11,721,106 4,339,620 8,779,723 r- 1982 1,681,481 7,315,498 13,366,919 4,404,602 9,706,874 1983 19631,693 70758,422 14,103,479 50028,173 10,189,138 1984 1,632,865 8,568,812 15,601,080 5,070,115 12,528,418 1985 1,759,542 90493,834 17,122,642 5,236,948 13*651,510 i ' 1986 1,773,596 10,251,710 18,744,618 5,668,499 15,045,519 r- Source: Administrative Services Department, City of Huntington Beach Note: Includes General, Special Revenue, Capital Projects and Debt Service Funds. " I -76- i EXHIBIT 8 housing and 1 Comunity Pion- Capital Debt Develoo!nt Departmental outlay Service Total I $ 57,307 $ 2,166,148 $ 4,340,816 $ 504,302 ¢ 33,663,993 49,960 2,497,049 6,967,086 504,375 41,678,451 52,005 4,687,607 5,233,229 504,746 41,405,074 659024 5,644,931 9,6279769 503,986 46,419,560 71,146 5,177,413 8,724,966 502,506 51,524,103 68,697 4,009,907 8,859,891 470,986 53,344,865 79,852 4,058,277 9,639,227 469,006 57,552,118 _J 665,654 3,740,992 8,620,833 1,830,149 62,266,941 966,384 4,867,215 7,873,719 1,896,104 67,605,157 -� 3,276,949 6,295,596 11,791,250 10846,950 79,110,254 _1 i J .i 'Y -77- 1`I�1 1 I CITY Or HUNTINGTON BEACH PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Secured Tax►a Fiscal Total Total Delinquency Year Levy Collections Amount Percrnt 1977 $ 9,982,983 $ 9,844,450 $ 116,794 1.17 1978 12,563,144 12,336,834 186,310 1.49 — 1979 5,635,879 5,525,120 110,759 1.97 1980 8,842,899 8,6029751 240,145 2.72 1981 10,244,680 9,8729496 352,184 3.44 1982 10,300,308 9,893,563 406,745 3.93 1963 11,405,210 11,1160699 258,511 2.53 r 1984 11,402,791 11,664,690 430,471 3.78 1955 12,418,398 11,633,797 424,700 3.42 1986 13,607,853 12,780,632 452,047 3.32 ~ r � Source: Administrative Services Department, City of Huntington Beach -78- EXHIBIT C Unsecured Taxes Total Total Delinquency LevZ collection• ^, Amount Percent $ 549,994 $ 53A,370 $ 6,791 1.23 742,053 711,519 30,534 4.11 561,420 537,307 24,113 4.30 8619976 839,468 22,508 2.61 8271168 789,078 38,090 4.60 808,024 737,425 460596 5.77 960,008 906,666 51,342 5.35 962,118 942,305 259543 2.60 1,032,103 915,100 33,094 3.21 1,130,2>4 1,059,541 39,631 3.51 •Ra ` 1 i 1Q, -79- N CITY OF HUNTINGTON BEACH GENZAAL BONDED DEBT RATIOS r Last Ten Fiscal Years � r f PM i Percent Assessed of General Market Debt to Fiscal Bonded Value* Assessed Year Debt (in 1,000s) Valuation Population 1977 5,220,000 $ 2,840,296 .18 157,300 r . i . 1978 59020,000 3,417,288 .15 161,301 1979 4,810,000 3,327,136 .14 167,409 �.., 1980 4,3909000 3,935,712 .12 172,200 1981 4,360,000 40297,220 .10 173,393 1992 4,150,000 5*219,684 .08 175,714 rl 1 LJ 1.983 3,930,000 5,672,214 .07 178,706 19" 3,695,000 6,292,926 .06 179,990 i 1985 3,425,000 6,823,900 .05 181,000 .- 1986 3,165,000 7,375,477 .04 184,280 lip Sources Administrative Services Department, City of Huntington Beach ^� Orange Cu:nty Assessor ` *Market value represents assessed valuation except for fiscal year 1976 through 1981. For these years assessed valuation was 25% of market value. Property Is assessed under guidelines of Proposition 13. I -80- 1/j �A A i EXHIBIT D i Percent of Debt Service Bonded to Total Debt Debt Service General Fund Per Capita PrineL al Interest Total Expenditures $ 33.08 $ 190,000 $ 310,450 $ 300,450 1.9 31.12 200,000 301,925 501,925 1.7 28.13 210,000 292,437 502,437 1 .5 26.65 220,000 282,375 502,375 1.4 25.14 230,000 272,737 5020737 1.2 23.62 210,000 260,525 470*525 1.1 21.99 220,000 248,450 468,450 1.0 J 20.53 235,000 235,800 470,800 .9 18.92 270,000 221,700 491,700 .8 17.17 260,000 205,300 465,500 .7 I i i J i I � f � ti - •81- LKHIBIT E CITY OF HUNTINGTON BEACH PROPERTY TAX RAPES - ALL OVERLAPPING GOVERNMENTS .w Last Ten Fiscal Years Metropolitan Basic OrauBe School Water Year Levy City__ County District , District Others Total 1976-77 - $ .40500 $ .35750 $ 1.52302 $ .03250 $ .13013 ¢ 2.44615 r 1977-78 - .38750 .33250 1.56920 .03250 .12020 2.44190 1978-79 1.00000 .04930 .00080 .14987 .02750 .00423 1.23175 1979-80 1.00000 .04930 .00070 .12572 .02560 .00393 1.20465 i 1980-81 1.00000 .04635 .00057 .12430 .02225 .00325 1.19672 1981-82 1.00000 .04635 .00050 .12810 .01980 .00270 1.19745 r 1982-83 1.00000 .05756 .00043 .11656 .01660 .00237 1.19352 1983-84 1.00000 .03682 .00039 .12096 .02370 .00210 1.20397 1984-85 1.00000 .05630 .00032 .09962 .01560 .00177 1.17361 1985-86 1.00000 .05565 .00030 .09329 .01640 .00161 1.16725 �- Source% County of Orange CITY OF HUNTINGTON BLACK EXHIBIT F COMPUTATIUN OF DIRECT AND OVERLAPPING BONDED DEBT 1 June 30, 1986 , l 1985-1986 Assessed Valuation: $7,360,328,556 (after deducting $510461,552 redevelopment tax allocation increment) Amount ` Percent Outstanding Applicable June 30, 1986 DIRECT AND OVERLAPPING BONDED DEBT: 1 Orange County 8.243 $ 192,061 Orange County Building Authorities 8.243 3,670,092 Orange County Flood Control District 8.246 902,937 Metropolitan Water District 1.698 9,0759334 Municipal Water District of Orange County Water Facilities Corporation 10.719 71760s556 Orange County Sanitation District #3 11.258 188,458 Orange County Sanitation District #11 99.883 351,588 Coast Community College District Authority 30.807 51589,930 .� Los Alamitos Unified School District 2.103 19,557 Huntington Beach Union High School District 71.102 2,1699941 Fountain Valley School District 31.827 119,351 Huntington Beach School District 96.788 1,6349132 Ocean View School District (Various issues) 92.560-92.832 2,028,284 Westsminater School District 28.072 10,105 City of Huntington Beach 100.000 3,165,000 City of Huntington >laach Building Authorities 100.000 11,910,000 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DXBT 49,007,326 ., Less: MWDOC Water Facilities Corp. (100% self-supporting) 7,760,556 �-' Orange County Sanitation District #3 (100% self-supporting) 188,458 + ...J TOTAL. NET DIRECT AND OVERLAPPING BONDED DEBT $ 41,058,312 RATIOS TO ASSESSED VALUATION: Direct Debt ($15,330,000) 0.21% Total Gross Debt 0.67% Total Net Debt 0.56% SHARE OF AUTHORIZED AND UNSOLD BONDS: Metropolitan Water District $ 4,499,700 Fountain Valley School District $ 1,574,800 E� Ocean View School District $ 3,888,732 ( � STATE SCHOOL BUILDING AID REPAYABLE AS OF JUNE 30, 19851 $37,152,896 Source: California Municipal Statistics, Inc. and Administrative Services „ Department, City of Huntington Beach -83- s EXHIBIT G CITY OF HUNTINGTON BEACH COKPUTATION OF LEGAL DEBT MARGIN June 30, 1986 Assessed Valuation $ 7,360"32$L'_56 Debt limits 15% of assessed value $ 1,104,049,283 Amount of debt applicable to debt limits Total bonded debt $ 3,165,000 Less net assets in debt service fund 59,619 Total amount of debt applicable to debt limit _ 3,105,381 i Legal Debt Margin $ 1,100.943,902 Sources Administrative Services Department, City of Huntington Beach sa i ��� -84- .. CITY OF HUNTINGTON Bum WATER REVENUE BOND COVERAGE Last Ten Fiscal Years w Expenses Net Revenue w (Excluding Available Fiscal Total Interest and for Debt Year _ Revenues Depreciation) Service 1976-77 0 4,333,253 $ 2,597,350 $ 1,735,903 1977-78 4,951,770 3,496,631 1,455,139 1978-79 5,539,891 3,653,791 1,8660100 1979-80 6,082,925 31643,233 29439,692 1980-81 5,814,133 4,760,478 16033,655 1981-82 6,5570815 5,286,338 1,271,477 ! I � r 1982-83 6,521,826 6,255,114 266,712 1983-84 7,035,318 6,657,552 377,766 1984-85 8,049,892 7,657,105 362,787 _ 1985-86 8,650,971 8,1600034 (109,063) r- Source: Administrative Services Depart:ent, City of Huntington Beach T -85- loft I 1 EXH131T H t i Debt Service Requirements Principal interest Total Covers-* $ 110,000 8 110,012 $ 210,012 8.3 120,000 95,400 215,400 6.8 120,000 91,500 211,500 8.9 130,000 87,405 217,405 11.2 130,000 83,115 213,115 4.8 I 140,000 78,660 218,660 5.8 150,000 73,800 223,800 1.2 150,000 68,700 218,700 1.7 160,000 42,718 202,718 1.8 58,000 39,631 97,631 - -86- f it EXH131T I CITY OF HUNTI14GTON BEACH i CONSTRUCTION ACTIVITY AND BANK ANJ SAVINGS AND LOAN DEPOSITS .- Last fen Fiscal Years Bank kumber Estimated and Savings of Valuation and Loan Fiscal Building Percent of New Percent Deposits Percent Year_ Permits Cha xe Construction Change (in 00018) Change 1976-77 6,939 - $179,328,608 - $ 607,297 - -- 1977-78 6,187 (10.8) 150,287,067 (16.2) 714,203 17.6 1978-79 4,457 (28.0) 91,461,610 (39.1) 8569340 19.9 . 1979-80 4,012 (10.0) 91,859,447 .4 955,539 11.6 ,I 1980-81 3,230 (19.5) 108,794,271 18.4 10045,345 9.4 i 1981-82 2,539 (21.4) 58,298,912 (46.4) 1,134,324 0.5 r 1982-83 2,776 9.3 52,458,315 10.0 1,368,634 22.4 1983-84 3,090 11.3 110,747,369 111.1 1,801.,778 29.8 1984-85 3,163 2.3 142,3360138 28.5 2,033,763 12.9 1985-86 3,173 .3 133,578,080 (6.2) *Bank and savings and loan deposits statistics for 1985-1986 were not available in time for this report. Sources City of Hunt ,. ;ton Beach, Development Services Department and the Findley Rya; :rts on California Financial Institutions. -87- •- CITY OF HUNTINGTON BRACH XXHIBIT J PRINCIPAL PRIVATE EMPLOYERS (Alphabetical Order) June 30, 1986 1 ' f 1 American Eagle Wheel Company Cambro Manufacturing Company John Thomas Trucking Company i Ceneral Telephone Huntington Center 1 Huntington Hunan& Hospital E McDonnel Douglas I� Mercury Savings 4 � Pacifica Hospital Rainbow Disposal Weiner Lock 1 Notes Excludes Governmental Agencies t j Source: Business License Division, City of Huntington Beach i f �88_ CITY OF HUNTINGTON BEACH INSURANCE IN FORCE June 30, 1986 r- Cal-Surance Broker Helicopter Hull :: Liability - r 19A & 1985 Hughes 5uud Helicopter Liability - 1964 & 1985 Bell 47's Helipad Liability Watercraft 'cull & Liability Watercraft Hull & Liability Helioeopter B.J. Excess Excess Workers' Compensation I Robert. Driver • Broker Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Fi !e, Ext., Cov. , Flood, Earthquake Fir%, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake Fire, Ext., Cov., Flood, Earthquake r- Fi.re, Ext., Cov., Flood, Earthquake Boiler and Machinery Public Official & Employee Faithfull Performance Bonds Fobe:t E. French - Broker r Medical Stop Loss Employee Tr4vel Accident Policy - Source: Administrative Service Department, City of Huntington Beach -89- KXHIBIT K i i Annual Insurance Comeany Policy No. Expires Premium Transamr.ica Insurance Co. 1200281 04/01/87 $ 120,925 i Transamerica Insurance Co. 1200280 04/01/87 10,438 Transamerica Insurance Co. 1201241 04/01/87 3,263 St. Paul Insurance Co. 388FA6887 04/01/67 6,750 Albany Insurance NH160 04/01/87 50700 Southern Marine 6 Aviation 14179 04/01/67 19,361 Employers' Reinsurance Co. C-35059-R 07/01/87 619264 i RLI SFCO2360 06/05/87 100,729 Lloyds 1617 06/05/87 1039200 Commonvealth U MP65447 06/05/87 51,600 RLI SPCGn3361 06/05/87 73,532 Lloyds 1619 06/05/87 46,666 Progressive CF4678277 06/05/87 40,292 Alliauz FC5022962 06/05/87 20,146 Com,sonvealth RXMP65448 06/05/87 20,640 Arkvright Boston Manufacture Mutual FMMOIN02434 06/05/67 12,591 Kemper (American Manufacture) 3XN01745501 04/01/89 10,328 INA Insurance CPBJ0110986 07/01/87 9,638 i American General 19086 04/30/87 74,300 Provident Life GTA-1116 07/01/87 625 793 988 -90- EXHIBIT L CITY OF HUNTINGTON BEACH DEMOGRAPHIC STATISTICS City Population Percent Square Orange County as a Percent of r Year Population Increase Miles Population County Population 1910 815 - 3.57 34,436 2.3 1920 1,687 107.0 3.57 61,375 2.7 1930 3,690 118.0 3.37 118,647 3.1 1940 3,73E 1.3 3.57 130,760 2.8 1950 5,158 38.0 4.72 216,224 2.4 ; 1960 11,492 122.0 23.47 703,925 1.6 r- 1970 116,400 912.9 26.73 1,420,386 8.2 1980 172,200 47.9 27.20 1,931,570 8.9 1981 173,393 1.7 27.20 1,972,724 8.8 1982 175,714 1.3 27.20 1,993,831 8.8 ' 1983 178,706 1.8 27.20 2,036,390 8.8 1984 179,990 .7 27.20 2,066,498 8.7 1985 180,000 .0 27.20 2,074,326 8.7 1986 184,280 2.4 27.20 2,130,428 8.6 Sources Department of Development Services, City of Huntington Beach -91- w. s.� it CITY OF HUNTINGTON BEACH EXHIBIT M MISCELLANEOUS STATISTICS June 30, 1986 1 I � I Year of iacorporstion 1909 Form of government Charter City - Council - "'� City Administrator Area 27.2 square miles Population 184,280 } --, Miles of streets 362.4 miles Number of street lights 12,275 i Fire Vrotections Number of stations 7 Fusjber of firefighter6 and officers 132 7 Police protections Nuber of stations 1 Number of police officers 20", Municipal water departments ' $ummber of customers 44,897 Average daily consumption 25.0 million gallons Miles of water mains 430 Seweres Sanitary sewers 270 miles Storm sewers 31 miles -, Recreation and culture: Number of parks 57 Acres of beach 43.3 Number of libraries 4 Number of volumes 300s000 Total library circulation 1,700,000 Full Time Employees 931 Source: Administrative Services Department, City of Huntington Beach t L -92- I V L. s 1 COMPREHEN€IVE ANNUAL FINANCIAL, REPORT / CITY OF HUNTINGTON BEACH FISCAL YEAR ENDED JONE 30, 1987 I , I PREPARED BY ADMINISTRATIVE SERVICES DEPARTMENT CITY OF HUNTINGTON BEACH J r ..r J AL 1 CITY OF HUNTINGTON BEACH COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal yecr ended June 30, 1987 Table of Contents INTRODUCTORY SECTION Mai Page Number Table of Contents i - iii I Letter of Transmittal iv - xiv Elected and Administrative Officials xv Organizational Chart xvi Financial Reporting Awards xvii - xviii FINANCIAL SECTION Schedule Accountants' Report 1 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups A-1 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental -� Futid Types A-2 4 - 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balance@ - Budget and Actual.- General, Special Revenue and Debt Service Fund Types A-3 6 - 8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 9 Combined &tatement of Changes in Financial Position - All Proprietary Fund Types A-5 10 -' Notes to Financial Statements 11 - 57 Financial Statements of Individual Funds and Account Groups: General Fund: Comparative Balance Sheet B-1 58 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-2 59 lI •i- ' , Page Schedule Humber Special Revenue Fundas , Combining Balance Sheet C-1 60 - 61 (.. Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 62 - 63 Combining Statement of Revenues, Expenditureb and Changes in Fund Balances - Budget and Actual C-3 64 - 68 � Debt Service Fundes Combining Balance Sheet D-1 69 - 70 71 1 Combining Statement of Revenues, Expenditures , and Changes in Fund Balances D-2 71 - 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual D-3 73 - 75 Capital Projects Fundas Combining Balance Sheet E-1 76 - 77 .� Combining Statement of Revenues, Expenditures and - Changes in Fund Balances E-2 78 - 79 Enterprise Funds% Combining Balance Sheet F-1 80 - 81 Combining Statement of Revenues, Expenses and Changes in Retained garnings F-2 82 - 83 Combining Statement of Changes in Finar:c:al Position F-3 84 - 85 - Internal Service Fundas Combining Balance Shr«t G-1 86 _. Combining Statement (-- Revenues, Expenses and Changes in Retained Earnings G-2 87 Combining Statement of Changes in Financial Fosition G-3 88 Agency Funds Statement of Changes in Assets and Liabilities H-1 89 General Fixed AEeets Account Croup: Schedule. of General Fixed Assets I-1 90 Schedule of General Fixed Assets by _ Function and Activity 1-2 91 Schedule of Changes in Fixed Assets by Function and Activity I-3 92 General Long-Terse Debt Account Groups Schedule of Changes in General Long-Term Debt J-1 73 I 7 J STATISTICAL SECTION Page 7Exhibit Number Governmental Fund Types Revenues by Source - Last Ten Fiscal Years A 94 - 95 Governmental Fund Types Expenditures by Function - Last Ten Fiscal Years B 96 - 99 Property Tax Levies and Collections - -� Last Ten Fiscal Years C 100 - 101 Assessed and Actual Value of All Taxable Property D 102 - 103 Property Tax Rates - All Overlapping Governments - Last Ten Fiscal Years E 104 General Bonded Debt Ratios - Last Ten Fiscal Years F 105 - 106 Computation of Legal Debt Margin C 107 Computation of Direct and Overlapping Bonded Debt H 108 Water Revenue Bond Coverage - Last Ten Fiscal Years I 109 - 110 DrAographic Statistics J 111 Construction Activity and Bank and Savings and --� Loan Deposits - Last Ten Fiscal Years K 112 J Insurance iti Force L 113 - 114 Principal Private Employers M 115 Miscallaneouo Statistics N 116 .i a , J 1l I � � -iii- 1 CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 October 29, 1987 AA 1 -� The Honorable Mayor and City Cmmilmembers City of Huntington Beach, California Mayor and Councilmembers: We are pleased to suUdt to you the Comprehensive Annual Financial Report for the City of Huntington Beach for the fiscal year ending Juw 30, 1987. We believe that the data, as presented, is accurate in all material respects a!y*. presents the financial II j condition of our City to you and other readers of this report in a clear and concise ' manner. The financial statements are prepared in accordance with the standards of the Government Accounting Standards Board and its predecessor, the National council on Governrwntal Accounting and includes the report of our independent accountants, Diehl, Evans and Da:pany. The report conaiats of three parts: 1. Introductory Section- letter of transmittal, City organizational chart and identification of principal City officials. 2. Financial Section- accountants' report, combined financial statements, combining financial statements and footnote disclosures. ~; 3. Statistical section- pertinent financial and non-financial data that gives readers a broader perspective on our City. ACCOUNC`M SYS'A'FM AID BUDGETMW OCN'1'M The City's financial statements are prepared on the modified accrual basis for all governmental fund types except for the financial statements of the proprietary fund types which are prepared on the accrual basis. The City's system of internal control has been carefully designed to protect City assets while ensuring that the cost of a particular control does not exceed its expected benefits. -� The City Council adopts the annual budget and may amend or revise the budget at any time. Budgetary control is maintained at the departmental level. A department head, with the Finance Director's approval can transfer funds within like object categories of the same department. The City Administrator can transfer funds from one object w 0 category to another without increasing the total budget of a department. The City Administrator must approve any changes to capital outlay requests. Any increases to a - total departmental budget must be approved by the City Council. The City utilizes an enmx brarw a wintem as a management control technique. Encumbrancca represent orders for goods or services unfilled or services not yet performed. At year end these are r. reported as reservations of fund balance in governmental fund types. These outstanding encur:brances are then reappropriated in the new fiscal year. The Accounting Division of the Administrative Services Department is responxi.ble for maintaining the City's financial information and for preparing this report. Kta-%= I+Ir EWIT Y AND IW 80MCES Huntington Beach is a full-service City including public safety, parks and recreation, beach services ,library services, planning and zoning, public works and related administration. The City also provides water services to residents and businesses. This report includes the financial activity of certain separate legal entities. These entities are: Iuntington Beach Public Facilities Corporation- (Public Facilities Corporation) This r entity was formed in 1970 to issue bonds to finance the construction of the Civic Center and Library complexes. Its original governing body was appointed by the City _ Council and its sole activity relates to leasing the Civic Center and Library complexes to the City. During the year the lease for the Civic Center site was discharged due to the formation of the Huntington Beach Civic Improvement Corporation (see below). Huntington Beach Civic Improvement Corporation- (Civic Improvement Corporation) Thin entity was formed in July, 1986 to provide for the issuance of $20,000,000 of certificates of participation of which a portion of these proceeds were used to defease the remaining Huntington Beach Public Facilities Corporation Lease.hold Mortgage Ravenue Bonds, First Issue. _ Parkina Authority of the City of Huntington Beach- (Parking Authority)- Ibis entity was formed in 1967 to issue bonds to finance the construction of off-street parking facilities and then lease these to the City. The Parking Authority's governing body is the City Council. Redevel nt Agency of the City of Huntington Beach- (Redevelopment Agency)-This entity was formed in 1967 to facilitate the renovation of certain areas within the City. The members of the City Council also function as the governing body of the Releveloanent Agency. There argil many other 90�ermntal agencies which provide services withinthe CitY• These agencies have independently elected governing boards and they are not a coutponent unit of the City of Huntington Beach. Therefore, their financial information is not included in this report. Cavonent, unit financial reports have been prepared for the Public Facilities Corporation and the Redevelopmwnt Agency. These reports show the financial activities of these entities on a "stand-alone" basis. Copies of these reports are available - frcm this office. I , i GHWERAL GOVERNMEREPAL FUWnCM General governmental functions include the operartions of the General, Special Revenue, Debt Service and Capital Projects Funds. Below is an acalysis of general governmental revenues, which increased by $7,725,749 or 10.1% over the prior year: Amount Amount Change 85/86 86/87 from 85/66 Property Taxes $19,427,642 $23,087,093 18.8 other Taxes 27,622,057 28,884,962 4.4 Licenses and Permits 4,427,014 4,918,549 11.1 Fines, Forfeitures & Penaltiea 1,973,670 2,095,714 6.2 j Frpm Use of Money and Prop 5,718,196 7,634,071 33.5 ' From other Agencies 14,143,061 14,422,660 1.9 Charges for Current Service 2,525,401 2,799,21.9 10.8 other 735,484 456,006 (38.0) i Total $76,572,525 rg84,298,274 10.1 Property,Taxes- 11we increase in property tax revenue is controlled by the guidelines { of Article 13-A of the California constitution and by the California Health airi Safety Code. Law interest rates helped trigger a real-estate boon which increased new residential and commercial development and increased the value of existing property in the City. This, along with Redevelopment Agency tax incremnt which totalled approximately $1.4 million accounted for a large portion of the increase. other Taxes- Normal increases. Licenses and Permits- Increases d:.+e to higher construction activity as a result of -' lower interest rates. Fines, Forfeitures and Penalties- 1,brmal increases. J Fran Use of (bwy and. Pmpe!ta- Increases due to increased interest income resulting from certificates of participation and tax and revenue anticipation notes istssW in July, 1906. -, Fran Other ncies- The smaller than expected increase is a result of reduced grant activity. J Charts for Current Service- Increases due to increased uBe of the City's recreation facilities. Other- Decrease due to reduced receipts for sniscellaneous property damage. -vi- ram• Below is an analysis of general governmental expenditures which increased by $3,791,591 or 4.6% for the year and a corparison with the prior year followed by an ._ explanation of significant fluctuations: Percent Amount Amount Change 85/86 86/67 from 85/86 City Council $90,02S $82,121 (8.81 -- City Administrator 629,890 709,952 12:7 , City Treasurer 286,648 281,848 (1.7) City Attorru_y 644,605 5c3,804 (12.5) City Clerk 163,608 152,622 (6.8) Administrative Services 2,600 737 2,680,065 3.1 Corrtunity Development 3,825,545 4,715,013 23.2 Fire 10,251,710 11,186,607 9.1 Police 10,744,618 20,519,431 9.5 Community Services 5,660,499 6,089,924 7.4 Public Works 15,045,519 14,567,248 (3.2) Non-Departm..ntal 6,795,596 7,708,794 13.4 Capital Outlay 11,791,251 10,730,436 (9.0) Debt Service 1,846,950 2,189,011 18.6 Total $78,385,285 ,582,176,8/6 4.8 The total increases closely approximate inflation and salary increases. The changes in the various departmental expenditures are largely due to a coat allocation plan which allocated redevelopment related costs of various departments. These allocations caused the decreazee in the City Council, City Treaaurer, City Clerk, City Attorney and Public Works departments. The increases in the City Administrator's department is dne to this office sending less Redevelopment--related time than the prior year. The increase in the Fire department is clue to increased overtime costs as a result of implementation of the Fair Iabor Standards Act. The increase in the Police department is due to the addition of seven more positions in the table of organization, The increase in Cc m mity Services is due to the addition of twelve permanent positions. Non--departmental expenditures increased due to interest expenses associated with the issuance of tax and revenue anticipation notes. Capital outlay expenditures decreased due to the change in the way that capital outlay expenditures are reported in relation to thr. Equipment Replacement Fund described below. PRKMST7'AU FL7hM The City operates three enterprise and two internal service funds. Enterprise funds im:lude the Water Utility Fund, the Meadowlark Golf Course Fund and the Emerald Cove Housing Fund and are mxoported through user charges to the public. The internal service fwxL- include the Felf-Insurance Fund and the Dquipment Replacement Fund and are supported by chargers to user departments within the City. -vii- 1 n� Shc7wn below is a table comparing the: performance: of the city`s enterprise fluids to the prior year. Meadowlark ' Water Utility Golf Course +; 1985/86 1986/87 1985/86 1986/87 t operating $0,172,637 $9,161,618 $210,437 $229,984 ^+ Revenues operating (1,761,013) (531,132) 105,850 202,447 ., Incom. (Loss) ` Net Income (Loss) (1,336,313) (202,517) 75,826 116,377 i Income Available (169,063) 1,060,185 263,502 269,192 for Debt Service 1 Debt Service, Sonde N/A 279,290 150,000 150,000 and Notes Debt Service N/A 3.8 1.7 1.8 Coverage 7 Emerald Cove Housing 1985/86 1986/87 J Operating $575,826 $618,012 Revenues Operating 265,509 251,242 Income (Lose) _.i Net Income (Loss) (26,484) (77,775) Incorw Available for Debt service 502,686 452,353 Debt Service, Certificates 449,795 449,795 of Participation Debt Service 1.1 1.0 Coverage J l.: -viii- i i i PM The Water Utility Fund net loss decreased as a result of an increase in water rates in April and October, 1986. The increase approved for fiscal year 1987/88 should eliminate any future losses. The increase in Emerald Cove rents in July, 1987 should also eliminate any future losses in the Emerald Cove Fund. Shown below is a table comparing the performance of the Cit-y's internal service funds to the prior year: I Equipment �. Self-Insurance Replacement ' 1985/86 1986167 1985/86 1986/87 Operating Revenues $5,543,657 $6,059,456 $1,650,402 $1,566,286 Operating Income (235,903) 102,722 1,490,235 (349,449) Net Income 158,722 517,077 1,826,693 (97,708) r The changes in the ineomne am=ts for the BTlipment Replacement Fund are a result of changes in the way the City records capital outlay expenditures described below. FUND HQOITIES 'Dotal fund equities increased $31,748,321, or 42.7% as shown in the table below: Total Total Percent - Dquity Equity Increase 85/86 86/87 (Decrease) Governmental Funds General $12,430,480 $ 18,744,528 50.8 Special Revenue 14,741,476 14,178,488 (3.8) Debt Service 6,864,970 6,925,942 3.6 Capital Projects 2,622,043 18,114,460 590.7 - $36,658,969 S 57,963,418 58.1 Total Proprietary Glsnds Enterprise $34,829,635 $ 35,090,571 1.0 Internal Service 2,048,422 12,561,136 340.0 Total Proprietary Funds $37,678,057 S 47,651,707 26.5 Grand total $74,337,026 2105,615,125 42.1 -ix- i `1 The equity increases in the governmental funds show the financial health of the City's general operations. The large increase in the fund equity of the capital projects funds is due to the proceeds from the ffuntington Beach Civic Improvement Corporation Certificates of Participation that will be used to construct parking structures and land now held by the Redevelopment Agency that will be resold to developers. The large incr9ase in fund equity for self insurance funds is due to the change in procedure used to record transactions in the Equipment Replacent Fund described below. j AGOr' FUNDS Total assets and liabilities of the City's agency funds increased by $1,686,584, or 23.2% to $8,968,426. This is due to increased employee participation in the City's section 457 deferred compensation plan which is the only agerx.-y fund maintained. � 17�T �IIHISlRATICN "1 Below is a summary of the City's outstanding long-term debt at June 30, 1987: t Description Outstandi.nq General Obligation Bonds $ 2,885,000 1970 Park Bonds Reverue Bonds 1963 Water Bonds 869,000 J Parking Authority 13onda 945,000 Certificates of Participation Redeveloprent Agency- 4,600,000 -� Ekwrald Cove housing Huntington Beach Civic Improvement 20,000,000 Corporation J Leasehold Mortgage Bonds Public facilities Corporation- 2nd Issue 3,210,000 Notes Payable Meadowlark Golf Course 1,755,949 San Joaquin Reservoir 271,785 ..� State Coastal Conservancy 425,000 Othar Compensated Absences 3,515,550 Y; Redevelopment Agency Debt 16,�22,:'77 Self-Insurance Claims 7,167,000 Amounts Due Under Owner Participation _3 ,408,047 Agreement Total �63,235 108 _X_ I� Further information on the City's long-term indebtedness is included in notes 10 and 11 to the general purpose financial statements. CASH !'1WVA2M I'T The City Treasurer is responsible for investing available rash in allowable instruments. These include insured or collateralized certificates of deposit, w, certain government securities, five year or less cc umrcial paper rated A or better and the State Treasurer's Local Agency Investment Fund. The cash management system of the City is designed to monitor and forecast revenue; and expenditure: to ensure the investment of monies to the fullest extent possible. The criteria for selecting investments are, in order of priority, (1) safety, (b) liquidity, (c) yield. Further information on the City's investments art- detailed in note 3 to the general purpose financial statements. r~ The average total of non--restricted cash and investments was $60,140,659 which yielded interest of $4,916,495 for a return of 8.2%. At June 30, 1987, 91.5% of the City's ,.. total investment portfolio matured in leas than one year. The California Government Code requires the City Treasurer to prepare an annual statement of investment policy and monthly report: containing specific information regarding the City's investment policy. The City Treasurer has complied with this law. Further information on the City's inve:st7 ent is detailed in note 3 of the financial statements. FIM The City's general fixed assets are used for general governmental operations and do not include the fixed assets of the enterprise and internal service funds. At June 30, 1987 the City's general fixed assets totalled $64,793,754. This amount represents Cost of the aseset:s and is considerably less than their present value. Depreciation of general fixed assets is not recognized. The City operates an Equipment Replacement Fund which owns all General governmental equipment and leases it to user departments. The Dquipment Replacement Fund purchases ` all replacement equipment for general governmental operations. At July 1, 1986 all equipment which had been recorded in the General Fixed Assets Account: Group was transferred to the Equipment Replacerwnt Fund. Governmental fund equipment purchases which do not replace existing equipaent are purchased by the respective fund and transferred to the the Equipment Replacement Fund. The transfers are recorded in the Equipment Replacement Fund as contributed capital. I MXWB 5 E'ER M FDtUW Huntington Beach faces the future as one of the leading cities in California. However, rrany difficult, challenging uncertainties remain for the City Council and I staff to overcomr .. -xi- I jiK f e I i nedevelopment will play a critical role in our future and construction is scheduled to begin soon in the Main/Pier project area which is the larger',: Redevelopment project undertaken so far. There has already been positive results due to our efforts in the Oakview, Talbert/Deach and Huntington Center project areas. Redevelopment is an important tool to face the challenges of the 1990s. ..� Article 13(b) of the California Constitution (the Gann limit) is also a very important issue facing Huntington Beach as well as many other local governments. The Gann limit allows the City's expenditures from "proceeds of taxes" to grow from fiscal year 1978- 79 only byka factor computed from population growth and inflation. The inflation of r" the late 19709 and early 1980s lulled many local governments into believing that this limitation would not ever become a concern. However, recent economic growth and low inflation have reversed the earlier trend. There are currently several proposed legislative amendments to this law that will be brought before the California voters in the June, 1988 election. We are hopeful that these proposed legislative changes will correct some inequities of the current law. If not, it is possible that in two .� to three years, Huntington Beach may approach its Gann limit. 1 The state and national economies are in a state of uncertainty. The economic health of Huntington Beach is in many ways related to the economic health of the country. Record federal budget deficits, foreign trade deficits and the recent stock market volatility threaten to end the recent economic expansion. The City mash do everything possible to ensure that our City will be able to maintain current service levels in , the event of a significant national or local recession. SIGNIFIC r 101AL EVEM J There were significant economic events in the Orange County area and particularly Huntington Beach during the year that will have a financial impact on the City. The _J dramatic drop in mortgage interest rates during the year caused a real-estate boom in Huntington Beach. The median resale price of an existing home in Orange County increased to over $168,000 at year end from approximately $132,000 at the beginning of the year. This should result in aubstanti.ally increased property tax revenues its the future as resales occur. Interesgt rates began climbing again near the end of the fiscal year and the impact on the real-estate market is unclear at this time. Also, law-interest auto rate loans combined with Federal income tax changes caused many people to purchase autcuabiles during the late months of 1986. Since Huntington �1 Beach has many auto dealerships, this caused a significant increase in sales t&( revenues. This was a one-time occurrence. JDEFEASANCE OF PUBLIC FACIISTM QORFCR TCN BONDS In July, 1986 the Huntington Beach Civic Improvement Corporation was formed which formed which provided for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- First Issue, totalling $7,010,000. The Civic �) Improvement Corporation issued $20,000,000 of Certificates of Participation to provide J for this defeasance. The City plann to construct parking structures in the Main/Pier project area of the Redevelopment Agency with the net proceeds $11,682,978. .� -X11- ' J y�'V r4 III i I I � s# SI2+RIE AUDIT In aceonlance with the Single Audit Act of 1984, the City's errant programs which utilize Federal funds, either directly or passed through frm state or county agencies, have been subjected to audit requirements of the office of Management and Budget. This included tests of compliance with Federal laws and regulations and an organization-wide examination of financial operations. The results of this expanded audit of grant activity are included under separate cover. Copies of the report are FIN available from this office. FIJUHCIAL RELCRTIM CFyfi PURR The City has prepared an easily readible and efficiently organized Comprehensive Annual Financial Report. The City's report for the fiscal year finding June 30, 1986 has been given appropriate recognition from the Government Finance officer's Association (GFOrA) and the California Society of Municipal Finance Officers (CSMM). The CFOA awarded the City a Certificate of hchievement for Excelle:we in Financial Reporting which is the highest. form of recognition for financial reporting that the GM awards. The certificate is valid for one year only and is awarded only to cities whose reports conform substantially with high standards of public financial reporting. The CSMM awarded the City a Certificate of Award for Outstanding Financial Reporting. This is also the highest form of award given by the CSMFn. We believe that this year's report continues to conform to the requirements of both award programs and we are submitting it to both organizations to determine its eligibility for another award. T)w- City received similar recognition for its Annual 9udget for 1986/87 from both the GY-Gh and CRIM. We are one of very few cities to receive recognition for both our l nnual Budget and Comprehensive Annual Financial Report. _ ,. j ACKNOWUMCEMEUrS We wish to thank the City Council and the various City departments for conducting the fiecal affairs of Huntington Beach in a responsible and progressive manner. We would also like to t}unk the members of the Accounting Division, especially Wayne Lee, ?Accounting officer and Robert Sedlak, Principal Accountant for their work in the preparation of this report. We would also like to take this opportunity to acknowledne the retirement of Warren G. Hall, City Treasurer who retired on August 17th, 1987 and to thank him for his nineteen years of dedicated service to the citizens of Huntington Beach. J LEAN T. VILIELIA Direct sr f E' A,,z.^ ROBOT J. FPANZ j Deputy City Administrator/ Administrative Services Department J ' J '1 J -X1 v- i CITY OF HUBTINGTON BEACH PRINCIPAL Cl2V OFFICIALS CITY COUNCIL Jack Kelly Mayor John Erskine Mayor Pro-Tem Wes Bannister Councilperson Ruth Finley Councilperson Peter Green Councilperson Thomas Mays Councilperson Grace Winchell Councilperson OTHER ELECTED OFFICIALS Donald L. Watson City Treasurer Gail Hutton City Attorney X Alicia Wentworth City Clerk c ADMINISTRATIVE OFFICIALS Paul Cook interim City Administrator/ Public Works Director Robert J. Franz Deputy City Administrator Douglas LaBelle Deputy City Administrator :games Palin Deputy City Administrator Melvin Bowman Community Services Director Raymond Picard Fire Chief G.L. Payne Police Chief Dan T. Villeila Director of Finance PEOPLE pit y 0 f ! CITY COMM Huntington Beach Organization Chart CATY I Igo PA WWWRATOR CITY CITY TREASURER ATTORNEY C1TV CLERK I I11N�1Ga0N M�I[!I i C POLICE FIRE PUBLIC WOUS CoIMiiUNitTY ADMINISTRATIVE CommullIITY DfvELar�EM= SERVICES SERVICES i I UNIFOIN FIRE DIVIS&OM PREVETION EItk:II�IEERlMG Pt-v"Ma P£RSO ;3 LIBRARY AMU. RECREATION i owls" f OPERATIONS WATER iutL01S10 PAREAL mum" REiOURCEi FLNVIOICATION EMERGENCY HOUSING/ FINANCE BEJICM • plyl�gM "ItwW 4 LASANCAPE RECf�tELO►. TIAIELMiTBNAlICE INFORMATION MILTURAL Olitwm SYsii;.:5 Aww INSURANCs A . il;liEFRi 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 _ June 30, 1986 A Certificate of Achievement for Excellence in Financial Reporting Is presented by the Government Finance Officers Association of the United States and Canada to governmental units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) are Judged to substantially conform to program standards. nas President tws+u�ss �' Executive Director i -Xv7i- I L__-- l_ I ._._i l._..: i_._-i !- _: !_.J -_J __J __J ___.1 --A .._j y__-_D __-__1 CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS DEDICATED TO THE PROFESSIONAL. ADVANCEMENT OF MUNICIPAL FINANCE ADMINISTRATION 0 dr • C/ ) A1717tep 0/ Award FOR OUTSTANDING FINANCIAL REPORTING PRESENTED TO THE C1'r of 14unrl'ns Beach This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared for the fiscal year 1985/1986. Chair,Professional Standapd Committee F6went VIM If 3e -- - - a i "I i 1 a FVIANCM SECTION I _J . J I � .rJ 1 i • 1 I%1%1: "it RS I.rA Dill -,J`rYAN�st �OL'li4 i,i\L 1111dA11111 AIIAIIIN lrA ' 1XWA1/11 IAll Al1P.N ll'A 1.rIILRM III RIR.IrA CERTn1EnMMI4CACC(IlUMANTS Rlrw/1► MIIAN.11.0A IIAI/7111 Wtlf`ItAIL ll'A i wq ArARTM N11►IN[71K7/+1:Al llAMTAI.IllU.111V1i117K5 ►MI IIAII■ Il'I11N.11'A I1910 NORTH 9USH STTZGIT n111lrn IKM I►A►IV IrA SANTA ANA•CAUFORNIA 92iW2894 nK74AS N flRlflw,Kl(TA r110NE(714)S42-44D September 9, 1987 j ACCOUNTANTS' REPORT City Council City of Huntington Beach i Huntington Beach, California .A We have examined the General purpose financial statements of the City of Huntington Beach, as of and for the year ended June 30, 1987, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the _1 accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the general nurpose financial statements referred to above present fairly the financial position of the City of Huntington Beach at June 30, 1987, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving effect to the changes with which Tie concur, in the method of accounting for contributed capital, equipment purchases, sales tax revenue, and land held for resale as more fully described in Notes 8a, 15 and 18 to the financial statements. -; Our examination was Made for the purpose of forming an opinion an the general purpose financial statements taken as a wlate. The combining, individual fund and individual account group financial statements are presented for purposes of additional analysib and are not a required part of the general purpose financial statements of the City of Huntington Beach. Such information has been subjected to the auditing procedures applied in the examination of the general purpose financial statemento and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken ac a whole. The other data included in the Statistical SectLon is presented primarily for supplemental analysis purposes. The scope of our examination did not include the statistical information and we do not express an opinion or any other form of assurance concerning it. " i 11P (MMt O Mt3 AT. ONE C MC PL4tA•SUrM 2M Va 000SMLT ST. 120 WEST WOODWARD AVE. NEWPORT REACH,CA 926C'b"13 CAKMAD.CA 9214m 2319 ESCONDIDO,CA 9M2S-VM ('N)W41% (619)T2 2M3 (614i 741-3141 I CITY OF HUNTINGTON BEACH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS June 30, 1987 r Governmental Fund Types + Specinl Debt Capital ASSETS General Revenue Service Projects .•� Cash and investments + (Notes le and 3) $ 10,884,333 $ 14,592,075 $ 1,773,079 $15,034,809 Cash With fiscal agent (Note 3) - - 5,045,532 83,457 Taxes receivable (Note lg) 1,890,934 - 31,958 1,263 Accounts receivable 315,349 59,951 82,105 54,917 Unbilled receivables - Inventory (:Iota lj) 146,073 - - - Due from other funds (Note 8) .1,000,000 -- - - Advances to other funds (Note 8) 11,750,547 5,144,301 - - Due from other agencies 462,462 598,433 - - Land field for resale (Note ld) - - - 3,009,109 Property, plant and equipment, ! net (Notes ld and 12) - - - - Amount available for debt service - - - - Amount to be provided for payment of long-term debt - - _ TOTAL ASSETS $ 20,449,698 $ 20,394,780 $ 6.9321674 $18,283,555 LIABILITIES AND FUND EQUITY — - LIABILITIES: Accounts payable $ 1,341,838 $ 1,097,507 $ 6,732 $ 8,050 Accrued expenses 2,212,343 17,940 - 11,045 �. Deposits 776,586 18,259 - 50,000 Due to other funds (Note 8) - 1,000,000 - - Advances from other funds (Notes 8 & 10) - - Deferred compensation (Note 4) - - - - Claims payable (Note 7) - - - - Deferred revenue (Note 5) 3,374,403 4,082,586 - ~� Long-term deb • (Notes 10 and 11) - - - - Compensated abbences payable ' (Notes le, 10 and 11) - - - TOTAL LIABILITIES 7,705,170 6,2161292 6,732 69,095 FUND EQUITYs Contributed capital - - - - Inveatuent In general fixed assets - - - - Retained earnings: Reservea (Note 13) - - - - Unreserved - - - - Fund Balances: Reserved ;Note 13) 10,456,808 K,248,872 6,92-0,942 18,114,460 Unreserved: Designated (dote 13) 1,563,034 1,656,417 - - Undesigna"ed 6,724,686 7,273,199 - Total retained earnings/ fund balances _ 18,744,528 14,178,488 6.925,942 18�114s460 TOTAL LIABILITIES AND PUt1D EQUITY ,S 26,449,698 $ 20,394,780 6.932,674 �418,183�555 See accountants' report and notes to financial statementa. 2� -2- . i SCHEDULE A-1 i Account Groups Proprietary Fund Types Fiduciary General General Totals „M Internal Fund Type Fixed Jong-Terms (Memorandum Only) Enterprise Service Agency Assets Debt _ 1987 _ 1986 $ 6,n70,499 $ 9,184,226 $ - $ - $ - $ 57,539,021 $ 37,842,745 1,485,499 - 8,407,725 - - 15,022,213 15,642,4 25 - - - - - 1,924,155 499,936 _ 514,021 51,172 560,701 - 1,638,216 1,292,226 929,749 - - - - 929,749 803,105 - - - - _ 146,073 146,073 - - - - - 1,000,000 - 171,770 - - - - 17,066,618 11,937,268 - - - - - 1,060,915 777,179 - - - - - 3,009,109 1,227,109 36,244,075 10,611,681 - 64,793,754 - 111,649,510 110,761,157 - - - - 6,925,942 6,925,942 6,864,968 412645/432 41.645,432 236738 L75F. ' $45,415,613 $19,847,079 $8,968,426 $64,793,754 $48,571,374 $259.5569953 $2111532,947 $ 879,409 $ 85,472 $ - $ - $ - $ 3,419,008 S 2,746,222 147,823 33,471 - - - 2,422,622 2,140,248 821,217 - - - - 1,666,062 1,405,378 - - - - - 1,000,000 - 943,841 - - - 16,122,777 17,066,6 16 11,937,268 - - 8,9:9,926 - - 8,939,426 7,253,342 j - 7,167,000 - _ - 7,167,000 5,625,000 - - - - - 7,456,989 5,358,660 7,407 ,162 - 28,500 - 28,873,047 36,308,709 23,181,749 _1 125,590 - - - 325752550 3,701,140 3,380,978 10,325,042 ; ,285,943 8s968,426 - 48,571,374 89-,148.074 63,030,845 -�4,654,835 11,793,345 - - - 46,448,180 36,730,204 _J - - - 64,793,754 - 64,793,754 72,937,969 i 16,676 4C8,000 - - - 424,676 872,231 419,060 359,791 - - - 778,851 75,622 - - - - - 40,746,082 21,248,367 - - - - 3,219,451 4,104,558 ` - - - 13,997,885 12,533,151 35,090 571 12,561,136 - 64,793,754 _ 170,408,879 _ 148-,502,102 $45_415,613 $19 8472079 $8,968,426 $64.793,754 148 571,374 4259,556,953 $211,5312 947 -3- e CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES FN FUND BALANCES ON ALL GOVERNMENTAL FUND TYPES 1 For the year ided June 30, 1987 �•+ General � Fund REVENUES: Property taxes (Note lg) $ 21,174,423 Other taxes 28,698,414 I � Licenses and permits 3,308,990 Fines, forfeitures and penalties 2,095,714 sU From use of money and property 4,397,997 1 From other agencies 7,880,417 Charges for current services 2,799,219 Other 4562006 TOTAL REVENUES 7775,811,180 EXPENDITURES: Current: City Council 82,121 City Administrator 555,452 City Treasurer 281,840 City Attorney 563,804 City Clerk 152,622 Administrative services 2,680,065 Community development 1,849,015 Fire 11,186,607 Police 20,511,085 .- Community services 5,959,254 Public works 14,567,248 Non-departmental 7,708,794 ^ Capital outlay 1,027,809 Debt Service (No* 10): Principal - Interest - TOTAL EXPENDITURES 67,125,724 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 3,685,456 OTHER FINANCING SOURCES (USES): Operating transfers in 1,284,790 Advances from General Fund (Note 10) - Proceeds of long-tern debt (Note 10) - Operating transfers out (3,017,633) Lous on investments (Note 3) (470,222) Other (Note 16) TOTAL OTHER FINANCING SOURCES (USES) (2,203,065) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 1,482,391 FUND BALANCE - BEGINNING OF HE YEAR 12,430,480 Prior period adjustments (Note 18) 1,098,900 ._ Residual equity transfers in 3,732,757 Residual equity transfers out - FUND BALANCE - END OF YEAR a 18,744,528 See accountants' report and notes to financial statements. r� -4- I 7 �) SCHEDULE A-2 i Special Debt Capital Totals Revenue Service Projects (Memorandum Only Funds Funds Funds 1987 1986 $ - $ 1,630,923 $ 281,747 $ 23,087,093 $ 19,427,642 ! 186,548 - - 28,884,962 27,797,491 1,609,559 - - 4,918,549 4,427,014 --, - - - 2,095,714 1,973,670 1,586,250 457,773 1,192,052 7,634,072 5,718,196 6,542,243 - - 14,422,660 14,143,061 - - - 2,799,219 2,349,967 456,006 735,484 9,924,600 2,080 696 _ 1.4?39799 �•841298,275 76,572,525 ' - - •• 82,121 90,029 154,500 - - 709,952 629,890 281,848 286,648 • - - 563,804 644,685 152,622 163,608 --� - - - 2,660,065 2,600,737 _� 487,203 - 2,378,795 4,715,013 3,825,545 • - 11,186,607 10,251,710 0,346 - - 20,519,431 18,744,618 130,670 - - 6,089,924 5,668,499 -� - - - 14,567,248 15,045,519 7,708,794 6,795,596 a� 7,864,767 - 1,837,860 10,730,436 11,791,251 J - 595,000 - 595,000 960,000 --� - 1,594,011 1,594,011 886,950 8.645.486 2,1891011 412164655 82,176,876 782385,285 1,279,114 (100,315) (2,742,856) W� 2.1211399 (1,812,760) 22,728 2,137,422 2,625 3,447,565 4,647,943 - - 4,380,032 4,380,032 4,913,841 14,017,187 14,017,187 216,100 (1,864,830) (2,625) (54,050) (4,939,138) (4,647,943) (470,222) - - _ 37'_,,619 371,619 a (1,842,102) 2,1341797 18,7174413 16,8072043 53129,941 �j (562,988) 2,034,482 15,974,557 18,928,442 3,317,181 14,741,476 6,864,968 2,622,043 36,658,967 34,568,895 I ` - - 1,277,109 2,376,009 i. 2,004,376 - 5,737,133 - - 0,977,884) (1,759,249) (5.737,133) - $ 14,178,488 1 6, 076 42 $18 114 460 ^� 57,963 418 $ 37,88G 925 9 , , -S- i CITY OF HUNTINGTON BEACH .� COMBINED STATEMM OF REVENUES, EXPENDITURES AND 4 CHANGES IN FUND BALANCES - BUDGET AUD ACTUAL rr GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES i f For the year ended .7»:.c :0, 1987 pa General Fund Variance - Favorable Budget Actual (Unfavorable) j REVENUES s I Property taxes (Note Ig) $ 20,391,000 $ 21,174,423 $ 783,423 a. Other taxes 29,637,100 28,698,414 (938,696) Licenses and permits 3,195,400 3,308,990 113,590 Fines, forfeitures and penalties 2,195,000 2,095,714 (99,286) From use of money and property 3,994,500 4,397,997 403,417 From other agencies 7,363,600 7,88U,417 516,817 Charges for current services 2,573,900 2,799,219 225,319 { Other _ 512,402 456,006 (56,39E) r TOTAL REVENUES 69,862,902 70.811,180 948 L278 EXPENDITURES: Current: City Council 85,669 82,121 3,548 City Administrator 568,191 555,452 12,739 City Treasurer 289,88E 281,848 8,040 City Attorney 567,783 563,804 3,979 City Clerk 133,1:a4 152,622 (19,138) Administrative services 2,734,699 2,680,065 54,634 Community development 1,660,533 1,849,015 11,518 Fire 11,267,922 11,186,607 81,315 Police 20,892,160 20,511,085 381,075 .— Community Services 6,139,176 5,959,234 179,922 Public Works 15,967,564 14,567,248 1,400,316 Non-departmental ",133,395 7,708,794 (575,399) + Loss on investments (Note 3) - 470,222 (470,222) Capital outlay 1,915,543 1,027,809 867,734 - Debt Service Note 10): Principal - - - -- Interest - - TOTAL EXPENDITURES 69.,5561 67,595,946 1,960,061 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 306,895 _ 3_,215,234 2,908,339 OTHER FINANCING SOURCES (USES): Operating transfers in 1,300,000 1,284,790 (15,2.10) Operating transfers out (3.017,633) (3,017,633) - TOTAL OTHER FINANCING SOURCES (USES) (1,717.633) (11732,843) (15,210) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,410,738) 1,482,391 2,693,129 FUND MANCES - BEGINNING OF THE YEAR 12,430,480 12,43n,480 - Pricer period adjustmenta - 11098,900 (1,093,900) Recidual equity transfers in 3,732,757 3,732,757 - -' Residual equity transfers out - - FUND BALANCES - END OF YEAS; 14 762_t499 Y 18,744,528 $ 3,992,029 See accountants' report and notes to financia_' statements. ?iS3r -6- SCHEDULE A-3 i 1 Special Revenue Funde Debt Service Funds Variance - 7ariancr. - Favorable Favoroble Budget .,_,_ Actual (Unfavorable) Budget Actual (Unfavorable) $ 1,J49,400 $ 1,630,92s $ 281,523 213.000 186,548 (26,452) - 1,405,000 1,609,559 20%,559 - - 1,105,000 19586,250 481,250 653,400 457,773 (195,627) 1.1,739,350 6,542,243 (5,197,107) 100,000 - (100,000) �- _ - - j 14,562,350 9.924,600 (41637,750) 2,002,801) 2,088,696 85.896 184,637 154,500 30,137 - - - 140,923 487,203 (346,280) - - - 17,042 8,346 0,696 - - 161,765 130,670 31,095 - - - 23,665,748 7,864,767 15,800,981 - - IJ - - - 595,000 595,000 - _ _ 1,795,943 1,594,0011 201,932 + 24;170.115 _ 8,645,486 15,524j629 2,390,943 2,189,01? --201,932 1 I �9,6072/65) _ 1,279,114 ,20,162,379) (388,143) (100,315) 287,828 EJ � .. 22,728 22,728 - 2,137,422 2,137,422 - (1,RB0,040) (1,864,830) 15,210 (2,625) (2,625) - (1,1357,312) (1 ,842,102) 15,210 2,134,797 211:14.797 (11,465,077) (562,908) 10,902,089 1,746,654 2,034,482 287,1128 14,741^,476 14,741,476 6,864,968 6,864,968 - - 2,004,37fi 2,004,:176 - (3,977,884) . (3.977,604) - $ 3,T.7G,•399 _ 14,178.4t $ 10,902,089 , 5,E38,114 ,RGp.925,942 287,828 (CONTIMD) -;- �I i i I i SCHEDULE A-3 CITY OF IIUNTINGTON BEACH I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND elm CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) 1 GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 30, 1987 i Totals (Memorandum Only) Variance `' Favorable i Budget _ Actual {Unfavorable) REVENUES: Property tares (Note 18) $ 21,740,400 $ 22,8059346 $ 2,064,946 Other taxes 29,850,100 2R,884,962 (965,138) Licences and permits 4,600,400 4,918,54cs 318,149 Fines, forfeitures and penalties 2,195,000 2,095,714 (99,286) From use of money and property 5,752,90D 6$442,019 689,119 From other agencies 19,102,950 14,422,660 (4,680,290) Charges for current services 2,573,900 2,799,219 225,319 Other 612,402 456,006 (156,396) ; TOTAL REVENUES 86.428.052 82,324,475 (3,603,577) EXPENDITURES: i Currents i City Ccuncil 85,669 82,121 3,548 City Adio:instrator 752,328 709,952 420R76 I City Treasurer 289,868 ".81,848 81040 City Attorney 567,783 563,804 3,979 ' City Clark " 133,484 152,622 (190138) Administrative services 2,734,699 2,680,065 54,634 Comstunity dwvelopment 2,001,456 2,336,218 (334,762) Fire 11,267*922 11 ,186,607 81,315 Police 20,909,202 20,5190431 389,771 ,-- Co=aunity services 6,300,941 6,089,924 211,017 Public works 15,967,5 64 14,567,248 1,400,316 Non-departmental 7,133,395 7,708,794 (575,399) r_ Capital outlay 25,581,291 8,692.576 16,688,715 Debt Service (Note 10)s Principal 595,00D 595,000 - Interest 1,795,943 1,594,011 201,932 TOTAL EXPENDITURES 96,117,065. 77,960,221 18 156,844 EXCESS OF REVENUES OVER EXPENDITURES (9,689,013) 4,8641254 (21.760,41�1) OTHER 'FIZtI+NCING SOURCES (11SES)s Operating transfers in 3,460,150 3,444,940 (15,210) Operating transfers out (4,900,298) (4,885,038) 15,210 Lose on investments (Note 3) - (470,222) (470,222) TOTAL OTHER FINANCING SOURCES (USES) (1,440,148) (1,910,370) (4701222) EXCESS OF REVENUES AND OTHER SOURCES OVER -- (UNDER) EXPENDITURES AND OTIM USES (11,129,161) 2,953,884 14,083,045 FUND HALANCES - BEGYNNING OF MW YEAR 34,036,924 34,036,924 - Prior period adjustments (Note 18) - 1,098,900 (1,098,900) �N Residual equity transfers in 5,737,133 5,737,133 - Residual equity transfers out (3,977,884) (3,977,884) FUND BALANCES - END OF YEAR $ 24,667,012 34 9,84B,957 15 18l�J945,. r. See accountants' report and notes to financial statements, 2377 -8- • SCHEDULE A-4 CITY OF HUN'"INGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES For the year ended June 30, 1987 �y I Totals Internal (Memorandum Only) Enter rise Service 1987 1986 OPERATING REVENUES: Charges for services '3 - $ 8,425,742 $ 8,425,742 $ 7,202,059 Water sales 8,9770514 - 8,977,514 7,912,216 Rentals 793,308 - 798,308 781,077 Other _ 233,792 - 233,792 273.9607 TOTAL OPERATING J REVENUES IJA009,614 �8,425,742 18,435,156 6,168,959 OPERATING EXPENSES: Water purchases 2,585,J33 - 2,535,733 2,081,891 Administration 537,878 1,301,137 1,839,015 2,087,043 Engineering 571,250 - 571,250 159,919 Production 2,2.62,538 - 2,262,538 20311,984 Maintenance 975,737 - 975,737 1,544,692 Water Meters 501,987 - 501,987 542,825 Contribution to general Fund in lieu of taxes 1,328,048 - 1,328,048 1,186,132 Workers cempeneation claims - 1,598,000 1,598,000 934,635 Liability claims - 1,768,E+56 1,768,456 1,792,779 Employee twdical claims - 2,392,456 2,392,456 1,380,738 -� Depreciation (Note ld) __ 11323,886 1,612,867 2,936,753 1,393,643 TOTAL OPERATING EXPENSES , 10,087,057 8,672,916 IS 759,973 16,216,281 - OPERATING INCOME (LOSS) (779443) (247,174) (324,617)_ (47,322) i NON-OPERATING REVENUES (EXPENSES): in-erest income 534,549 666,543 1,201,092 1,404,284 Interest expense (620,801) - (620,801) (629,251) TOTAL NON-OPERATING REVENUES (EXPENSES) (86,252) 666,543 580329! 775,033 NET INCOME (LOSS) (163,695) 419,369 255,674 727,711 RETAINED EARNINGS (DEFICIT) - �` BECINNINC OF YBAX 599,431 348,422 947,653 (571,095) PRIOR PERIOD ,ADJUSTMENT - __.. - _ - _ 791,237 EETATNED EARNINGS - END OF YEAR ^� 435,736 $ 767.791 ;_ 1,203,527 0_ 947,853 See accountants' report and notes to financial statements. -9- A SCHEDULE A-5 ~ CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES r For the year ended June 30, 1987 ar Totals i Internal (Memorandum Only) f ` Enterprise Service Fund 1987 1986 SOURCES CF WORKING CAPITALS Operations: I , Net loss (loss) $ (163,695)$ 419,369 $ 255,674 $ 727,711 Loss on. sale of plant property end equipment 33,869 57,987 91,856 - Depreciation 1.323,886 1,612,867 2,936,753 1.393.643 Working capital provided by operations 1,194,060 2,090,223 3,284,283 2,1:•1,354 `n Increase in .;elf-insurance claims payable - 1,542,000 1,542,000 439,000 Sale of plant, property and ^� equipment - 42,374 42,374 2,770 contributions (Notes 8 and 15) 1,257,061 16,620,748 17,877,809 1,794,978 Amortia,tion of Certificates of Participation Discount 12,795 - 12,795 - I Net Iteductio. in restrir.;ted asset3 6,871 - 6,871 (32,887) ' Increase in advmneen Lo other I ► funds 943,841 - 943,841 TOTAL SOURCES OF WORKING CAPITAL 3,414,628 20.2950345 23.709_.973 4932SI215 USES OF WORKING CAPITALS Increase in property, plant and equipment 1,545,692 17,840,300 19,385,992 3,235,506 Decrease in long-term notes/bond3 275,467 - 275,467 140,07E Decrease in compensated absences 22,481 - 22,481 26,596 Increase in advances from other funds 171,770 - 171,770 - - Contributions to Park Acquisition anti Development Fund _ 832,430 - 8321430 - TOTAL USES OF WORKING _ CAPITAL �2,847,840 _ 17,840,300 20 688,�.40 _ 3,502,178 NET INCREASE IN WORKING CAPITAL _ 566l 788 2 455,045 $ 3,021,833 $ 823,037 ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPIT.ALt Cash and investments $ 371,421 $ 2,506,059 $ 2,877,480 $ 761,461 Accounts receivable 126,869 4,418 131,287 (63,896) Due from other funds (24,428) - (24,426) 2,220 Prepaid expenses and other assets - - (136,010) Accounts payable 63,821 (55,432) 8,389 31,507 Due to other funds 111,411 - 111,411 - Interest payable 154 _ 154 215,450 Deposits (65,875) (65,875) 25,768 :.. I� Current portion of long-term i� debt _ (16,585) - (16,583) (13,463) NET INCREASE (DECREASE) IN W0:IKING ChPITAL 566,788 �, 2,455,045 $ 3L021,833 $_ 823,037 j See accountants' report and notes to financial statements. -10- i CITY OF HUNTI NGTON BEACH MOTES TO FINANCIAL STATEMENTS JUNE 30, 1987 1. SUP29M OC SICKPICANT A 00UNTIM FOUCIES: a. Description of Fund Types and anAccountGroups: i ' The Cite of 11untingto n Beach (City) accounts for its firanciaal position and ope-ati.ons in accordance with generally accepted accounting principles n for governmental units prescribed by the Government Accounting Standards I , Board ( MB). The City uses various funds and account groups to record its financial activity. A fund or account group is an accounting entity with a self-balancing set of accounts established to record the financial 1 position and results of operations of a specific ysnrernmental activity. � + The City maintainn the following .fund types and account groups: !' Governmental Fund Types: CThe General Fund is used to account for all financial activity that is not required to be accounted for in another fund. C Special Reveauo- Funds are used to acaotmt for the receipt and expenditure of monies legally restricted to a specific use. ` Debt Service Funds are used to ac-xt:ct for the receipt and disbursement of !: monies used for ':he payment of general and redevelopment long-term princip-al area interest. i Capital Projects _Fuzj4-s are used to account for monies used for the acquisition and construction of major capital facilities. 7 Proprietcaty FW4 Types: U11 Enterprise Funds are used to account for City operations that are financed in a manner similar to private bu:;inesses. Enterprise funds are used wt.en the City wishes to recover the cost o1a a particular service furnisIted to �J I,I . it See accountanta' report 11 r CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 1. S[>I"I'MY OF SIGrTIFIC W A000UMM RNACIM: a. Description of Fund types and Account Groupe (Continued): the public an a cost (expenses includi.Rg depreciation) reimbursement basis or when the City wishes to make periodic determinations of net inrame. Internal Service Funds are used to account for goods and services provided ! by one department of the City to another on a cost-reimbursement basis. Fiduc3za ry Fund Type: Actency Funds are used to account for assets held by the City as an agent for individuals or private organizations. Acvount Groups: The General Fixed Assets Account Grasp is used to record and control capital asretss owned by the: City other than those owned by proprietary fund types. The General Long Term Debt Account Graze is used to account for the unmatured lcr,g-tenn liaJ-ilities; that will be financed fran governmental funds. b. Basis of Accounting: Governmental and agency fund types use a modified accrual basis of accounting. The only exception is that the assets of the Employee Deferred Canpensation fund, an agency fund, are reported at market value rather than at c.,gt in accordance with GAM Statement 2. Revenues are recognized when they are susceptible to accrual. This means that they must be measurable and available to finance current period expenditures. Fevenues mmceptible to accrual are received within 60 days; after year-end III See accountants' report 12 6 .. 1 i I CITY Or HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 X. suWWRY OF SfCNrFICAW AiQMXWI M PQiL"YCIIS ((]WrIHU®): 13, Basis of Accounting: 4 ,., and include property taxes, sales tax, federal and state grants and subventions, interest and certain charges for current service. Revenues which are not susceptible to accrsal include certain licenses, permits, fines and forfeiture and other miscellaneous revenue. Expenditures, other than principal and interest on long-term debt are recorded whem, incurred. Proprietary fund types are accounted for on the accrual basis. Accounting for these fund types Normally follows accounting for private b;isin--sxses. i "1 Revenues are recognized when earned, regardless of the date of receipt. ,.j Expenditures are recognized when incurred. � I yJ c. Investments: Investments are stated at the laver of cost or market value except that. _i market value declines below cost are not recorded unless such declines are considered permanent (see note 3). .J a. Property and Equipment: Acquisitions of property and equipment are generally recorded as _ expenditures in governmental fund types at the time of purchase and are capitalized at cost in the General Fixed Assets Account Group. Land held J by the Redevelopment Agency for resale is capitalized at the lower of cost or market in the Redevelopment Agency Capital Projects Fund. Expenditures for infrastructure (roads, curbs, sidewalks, sesiers, etc.) are not fJ capitalized as such assets are immovable and generally of value only to the City. No depreciation is provided for any asset capitalized in the General Fixed Asssete Account Group. �J See accountants' report 13 r CITY OF HUNTINGTON BEACH i NOTES TO FINANCIAL STATEMENTS (continued) r' JUNE 30, 1987 i 1. SEMMFIRY oe STGN MCMT A00DWING RXJCIES (0WZ7 WW): d. Property and Equipment: Property and equipment acquired by proprietary fund types are capitalized at cost at the time of purchase in the f:utid making the purchase. Assets acquired fmm gifts or contributions are capitalized at fair market value at the time received, or in the case of water fixed assets, at City ... Cc-uncil acceptan►-e date. Depreciation for both donated and acquired assets is calculated on the straight-line rathod over the estimated useful i lives of the assets shown below and charged to the operations of the respective fund. i I Production, pimping, traimiiseion and distribution plant -- 10 to 50 years General plant- 20 to 50 yearn Transportation equiptnent- 5 to 30 years ' a. Employee Compensated Absences. --~ The City records the cost of vacation and sick leave when paid in the ._ governmental fund types and when incurred in the proprietary fund types. At June 30, 1987, the tu.fundad liability for vacation and sick leave accumulated by the City'rs govenrental funds totalled $3,575,550 (note 10g). The City has recorded this amount in the General Long-Term Debt Account Grasp with the assumption that these amounts will be paid with future firm-r-i.al resources rather than currently available spendable resources. In the proprietary fund types the liability of $125,590 has -- been recorded. These amounts represent the "cash surrender value" of all accumulated vacation and sick leave which is the amount that would be paid to employees if they terminate. Vacation is paid at 100% of the accrued ,wnunt while sick leave is paid at varying amounta depending on the eWloyee's contract. See accountants' report 14 -9 CITY OF HUNTING'TON BEACH f NOTES TO FINANCIAL STATEMENTS -� (continued) JUKE 30, 1987 1. RY W HIIGNIFICANT ACLU ING "MIC113S 10"IMM) f. Budgetary Accounting: The City Council annually adopts a budget by June 30th of the prior fiscal year. The budgeted expenditures became the appropriations to the various ' departrt-nts. Estimates are also made for revenuz which, alone with the appropriations, are used to compute the budgetary fund balance. This appropriated budget, as defined by GASB Code Section 2400.109, covers substantially all City expenditures with the exception of capital ,improvement projects (capit:al 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 Aininistrator may transfer funds from one object purpose (personal services, operating expenditures or capital outlay expenditures) to another within the name department without changing the total budget of a department. A department head may transfer funds from like object categories of the same der-;rtment. Any changes to a total departmental budget must be approved by the City Council. Expendituxes may not exc&.4 appropriations at the departmental lcr�el. All unused appropriations lapse at year-end. Budgets for governmental fund types are adopted on a basis substantially consistent with generally accepted accounting prirxriples as legally required. There are no significant non-budgets expenditures. Revenues 7 for special reveme funds are budgeted by entitlements, grants and estimates of future development: and economic growth. Expenditures and transfers are budgeted based upon available financial resources. Budgetary data is presented for the General, Special Revenue and Debt service EUnds. Budgetary information is not presented for the Capital Projects funds since these are budgeted on a long-term project by project basis. The City utilizes an encumbrance system as an aid in controlling expenditures. Encumbrances represent amounts catmitted for goods or services for which a purchase order has been issued and the goods have not been received or the services have not been rendered. At year--end, all outstanding encumbrances are reported as reservations of fund balance in cloverm ental fund types. 'these outstanding ercumbrances are then reappropriat-ed into the new fiscal year. .J Seib accountants' report 15 A Iv r ► CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) PW JUKE 30, 1987 w 1. SUIVVNRY OF SIGNIFICWr ABM PGLICIES (03VINUM): f. Budgetary Accounting: The budgetary information presented for estimated revenue and appropriations represent the original budget adjusted for changes rode by .., action of the City Council, City Administrator or Department Head. All 1 changes to the original, adopted appropriations (expenditures plus other financing uses) are summarized below (funds with no change!z are not shown): i Fund original Revised ► General $70,634,126 $72,573,640 Special Revenge Funds: Gas Tax 11,613,000 15,612,258 Sewer 688,200 739,514 Planned Local Drainage 410,000 1,666,430 Public Communications 206,040 220,180 Grants 1,107,000 4,838,721 Park Acquisition and Development 2,812,599 2,688,550 Debt Service Civic Improvement Corporation - 965,000 g. Property Tax Revenue: 4 Property tax in California is levied in accordance with article 13-A of the California constitution. The basic levy is a countywide--levy of one •~ percent of total assessed valuation. This basic levy is allocated tc ' county gowernment, school districts, cities and special districts. � Additional levies require two-thirdn approval by voterr and are allocated directly to the specific government unit. Property tax revenue is recognized d in the fiscal year levied provided that the revenue is collected during the year or within 60 days of year-end. See accountants' rel?orz 16 w I CITY ON HUNTINGTON BEACH 1 NOTES rO FINANCIAI. STATF.MNNTS -' (continued) i JUNB 30, 1907 .1. SEPMAfiY OF SI(NrFICANT AOMWr= R XdCM (CGNTINUM): g. Property Tax Revenue: The County acts as a collection agent for property tax for all of the local governmental units. Property taxes are normally collected twice per year. The property tax calendar is as follows: Lien Date- March 1st of prior fiscal year Levy Date- July lot Due Date, First Installment- November 10th Due Date, Second Installment- February loth Delinquent Date, First Installment Decayber llth Delinquent Date, second Installment- February 11th The taxes are remitted to the local governments periodically during the ' year. Belau are shown the dates and percentages from the County (dates and percentages vary slightly fron year to year) November 30th- 5% December 19th- 20% December 28th- 20% February 1st- Balance of First Installment March 28th-5% April 26th- 34% July 26th of next fiscal year- Balance of Second Installment J h. Total Columns on Combined Financial Statements: ' The coined financial statements include total columns which aggregate the fi.naw-ial statements of the various fund types and account groups. The columns are designated "memorandum only" because the totals are not comparable to a consolidation since interfund transactions (with the -' ♦ exception of certain transactions between the City and entities which are part of the City's reporting entity described in note 2) are not eliminated. J ..J See raccountants' report 17 � lJ� 0 a� CITY OF HUNTINGTON BEACH � NOTES TO FINANCIAL STATEMENTS �• 1 (continued) JU NE 30, 1987 i , I. sa4m of SIGNIFICANT A0000WrIHG POLICIES (t7QWI'DWED): i. Measurenent Focus: i t The City's governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that generally only i current assets and current liabilities are included on their balance I :sheets. Statements of revenue, expenditures and changes in fluid balance for governmental funds generally present increases (revenues and other r- financing am ices) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets arrd liabilities are included on their balance sheets. The fund ! equity amount represents total net assets. Proprietary funds are ► � accounted for on a capital maintenance measurement focus. This means that all assets and liabilities, whether current or noncurrent, are shown on the balance sheets. Their reported fund equity represents total net assets. Proprietary fund operating statements present increases (revenues) and decreases (expenses) in total net assets. j. Inventories: inventories are accounted for on the purchase (expenditure) method. Expenditures for inventory are written off as incurred. Inventories of i materials and supplies totalled $146,073. This amount is recorded as an j asset in the general fund with an appropriate reservation of fund balance. k. Allocation of Interest Income Among Funds: The City pools all non-restricted cash for investment purchases. Interest ' income is allocated monthly to the various Bands hased on the month-end cash balances. Interest income from restricted cash is recorded directly in the fund earning the income. i ► See accountants' report lei � I 1 CITY OF HUNTINGTON ©EACH ..� NOTES TO FINANCIAL STA'rEMP.NTS (continued) y JUNE 30, 1987 M 2. DIF 4IP'!'ICH OF TFiB R MXFar G 12nMrY: This report incorporates GAM Code Section 2100, "Defining the ' Governmental Reporting Entity," which outlines criteria to determine whether a separate legal entity's financial information should be included -' in the City's financial statements;. Based upon the statement's i guidelines, certain separate legal entities have been included in the report. The criteria used in evaluating the different entities was oversight responsibility and financial dependency. Below is a description j of each of these entities and how their financial activity has been evaluated and incorporated into this report: Huntingtons Beach Public Facilities Corporation (Public Facilities Corporation)- This entity was formed in 1970 to issue bonds to construct the civic center and library complexes. The City leases the facilities from t)me Public Facilities Corporation. The lease is a capital lease because title to the facilities passes to the City upon termination of the lease. The corporation's original governing body was appointed by the City Council. However, the governing board itself appoints any su mosors. The entire financial activity of the corporation is a lease with the City, the retirement of the bands and the construction of various capital vtprovtumnts. The City Council adopts an annual budget for the Public Facilities Corporation which cannot terminate its lease with the City if the City mrets the terms of the lease. At the termination of the lease, the Public Facilities Corporation will dissolve and its assets will revert -? to the City. The assets and related revenue and expenditures that are used for repayment of the bonds are recorded as a debt service fund. Assets used to construct capital ' :iprovements are recorded as a capital �. projects fund. The capital projects fund normally receives no revenue ' other than interest. If additional funds are required for capital projects, they will be transferred from the the Public Facilities _ Corporation Debt Service Fund. Since the Public Facilities Corporation i is a part of the City's reporting entity, the capital lease between the -� City and the Public Facilities Corporation has been eliminated. Parking Authority of the City of Huntington Beach (Parking Authority)- This entity was formed in 1967 to issue bonds to construct off-street parking facilities. The City leases the facilities from the Parking Authority. The lease is a capital lease because even though the assets are retained by the Parking Authority at the end of the lease, the City Council may, by resolution, dissolve the Parking Authority and deed the J See accountants' report 19 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) M JUNE 30, 1967 2. DE KRIMON OF THE RP.POE' U G ENTITY ((Vel rNUW): assets to the City. The Parking Authority's governing body is the City Council. At any tine dufing the term of the lease the lease payment may be forgiven by resolution of the City Council it there is wifficient cash in the Parking Authority to meet the debt service requirements. The assets and related revenue and expenditures that are used for repayment of the bonds are recorded in a debt service fund. Assets used to construct capital improvements are recorded in a capital projects fund. fll The capital projects fund normally receives no revenue. If additional funds are required, they will be transferred from the Parking Authority Debt Service Fund. Since the Parking Authority is a part of the City's reporting entity, the lease has been eliminated. Redevelopment Agency of the City of Huntington Beach (Redevelopment. Agency)- This entity was formed in 1967 to facilitate the renovation of older areas in the City. The City Council serves as governing body of and adopts an annual budget for the Redevelopment Agency. The Agency is financially dependent on the City for all of its operations. �a The tax increment revenue received by the Agency is recorded in a debt service fund and the capital improvements made are recorded in a capital '- projects fund. Long-term advances from the City to the Agency have been recorded as a long-tenn advance on the respective fund's balarx:e sheet with an appropriation reservation of fund equity. The Agency's debt is recorded in the General Long-Term Debt Account Group (since these amounts will be paid fran future financial resources. Runtip9ton Beach Civic LTrovement Cot ration (Civic Improvement Corporation)- This corporation was formed to provide for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mortgage bands- IsSt Issue as described in Note 14. The Civic Improvement Corporation issued $20,000,000 of certificates of participation to provide for this defeasance. The governing board of the Civic Tmprovermnt Corporation is the City Council which also adapts its annual budget. The Civic Irprovement Corporation has title to the Civic Center corTlex and leases it to the City. It is a capital lease because title to the Civic Center ccoplex reverts to the City at the end of the lease. The lease carmot be terminated if the City meets all its financial obligations. The 4-. I , i I See accountants' report 20 Z�4 f CITY OP HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 I + 2. DF9tRIMCN OF WE PEPCRTIM, ERrITY MWINUED): assets pledged for repayment of the certificates of participation and the related revenues and expe��, itures are recorded in the Civic L'np rovement I Corporation Debt Service Fund. The capital lease has been eliminated in j accordance with "Y]GA Statement 5. There are many other governmental agencies, including the County of Orange, various elementary school districts, the Coast Ca unity College District, the Huntington Beach Union High School District and various special districts which provide services within the City. These entities have independently elected qo erning boards and are not a component unit of the City of [Wtington Beach and their financial information is not included in this report. I 3. CAS; AND INVEMIS 1R: Cash and investments at June 30, 1987 consisted of the following: Cash and investments $57,539,052 Cash with fiscal agent 15,022,213 Thtal $72,551,234 J I Investmments are stated at the lower of cost or market value with the exception of the investments of the Deferred Compensation Rind which are recorded at market value. If market values decline below cost, no lore is -' rm-)riled if such declines are considered temporary. The cost basis of Investment in Mutual Funds was adjusters d--mmward by $470,222 to reflect a permanent decline in value through June 30, 1987. As of rcptember 9, 1987, there is additional, unrealized loss in these investments of $478,034. _J 1� See accountants' report 21 -r CITY OF HUNTINGTON BEACH MOTES TO FINANCIAL STATEMENTS on (continued) JUNE 30, 1987 3. CNE AND IWJ "'3DMM (03UII+F M: I The following disclosures are made in accordance with GASB Statement Number 3. Authorized Investments M1 11w City of Huntington Beach operates its pooled cash investments under the "Prudent Man Rule" (California Civil Code sections 2261 et seq.). i This allows a broad spectrum of investments a, long as the investment is dee ed prudent and allowable under legislation of the State of California a (Government Code Section 53600 et seq.). Under the provisions of the City's investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in. t>x-- following types of instruments: a. Bankers acceptances b. Negotiable certificates of deposit ` c. Cam rcial paper I d. Bonds issued by the City e. Obligations of the United States Treama y f. Federal Agency obligations of: Federal Intermediate Credit Bank (FICBs) Federal. Land Barn: ( lea) Federal Fkrse Moan Bank (F EPs) Federal National. Mortgage Association (FNMAs) Small Business Administration (SBAs) Government National Mortgage Association (GNMAs) Tennessee Valley Authorities (TVAB) Student Loan Association Notes (Sallie Mae's) See accountants' report 22 • i 1 I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS i (continued) ' JUNE 30, 1987 I ' 3. CAM AND l(!0[+1TINI®) ;I i g. Obligations of the State of California or of any local agency within the State of California: The Local Agency Investment Fund (LAIC') is a special fund of the California State Treasury through which any local government may pool .� investments. Each agency may invest up to $5,000,000 in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. Investments with LAIF are secured by the full faith and credit of the state of California. _i h. Repurchase Agreenwnt -. i -, Throughout the year ending June 30, 1987, the City utilized overnight rep.:rchaae agreemnts for tovrporary investment of idle cash. Such agreements were used on average of 20 to 22 times per month and generally did not exceed 10% of the City's investment portfolio. i. Reverse-Repurchase Agreemenica: Although the City's investment policy does not preclude the use of Reverse-Repurchase Agreements, the City did not borrow through the use of reverse repurchase agreements at any time during the year. j. Medium-Term Corporate Notes k. Mutual Funds �+ Collateral for PM2sits Under provisions of the California Government Code, California banks and savings and[ loan associations are required to secure a City's deposits by pledging government securities with a value of 110% of a City's deposit. California law also allows financial inaitutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. i • I See accountants' report 23 I it CITY OF HUNTINGTON DRACH NOTES TO FINANCIAL STATEMENTS ^, (continued) .TUNE 30, 1987 ' 3. CASB AND (CcNrINUED): r The City Treasurer, at his discretion, may waive the collateral requirement for deposits which are fully insured up to $100,000 by the r. Federal Depr>sit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. It is the City's policy to waive the collateral requirement if there is a higher interest yield on the investments. 3afSt2g1jM Arrangements for Investments ' Under Setrtions 53651 to 53653 of the Calfornia Government Code, as amended, the collateral underlying an agency's investments must be � . delivered to the City. If U.S. Treasury Bills are used as the underlying collateral, the delivery may be made by "book--entry" only. For all other collateral, the security mist be physically delivered to the City or a third--party custodial agent. Under California Senate Bill number 2115, passed in 1986, a bank is ~ ipermitted to maintain the underlying securities in its Trust or Safekeeping D%artment when acting as a third-party custodial agent. r GASB Statement 3 requires the City's invents to be categorized as follows: Category 1- Insured or registered, or securities held by + the City or its agent in the City's name. Category 2- Uninsured and unregistered, with securities held by the counterparty's trust department or aunt in the City's - name. Category 3- Uninsured and unregistered, with securities held by the counterparty, or by its trust department or i agent, but not in the City's name. See accountants' report 24 's i I ! CITY OF EIONTINGTON I3P.ACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 3. CAM AHD IWESTMEWS (CORrINUM: I i Category Carrying Market -� 1 2 3 A►munt value pepurchase agre rent $ - $ - $ 4,125,000 $ 4,125,000 $ 4,125,000 FHLB Securitiea 954,650 - - 954,650 970,000 -► Corporate Notes 1,476,590 -- 2,249,254 3,725,844 3,722,720 .J Small Dwiness Administration - 230,300 230,300 241,815 Cash with Fiscal Agent - - 15,022,213 15,022,213 15,022,213 Subtotal $2,431,240 g21,626,767 $24,058,007 $24,081,748 Deposits which are 100% insured or -� collateralized: Demand Accounts (749,866) (749,866) Certificates of deposit 36,341,000 36,341,000 JInvestment in LAIF 5,000,000 5,000,000 1 Investment in Mutual Minds 7,912,093 7,912,093 N; Total Deposits and Investments $72,561,234 $72,584,795 At June 30, 1987, the City had deposits totalling $5,065,000 in out--of -' state financial institutions, which is in violation of California Cade section 53635. See accountants' report 25 y.. CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 t 4. DEMR'D aM0W=0N-* i permanent City eMloyees have the option of deferring a portion of their salary under Section 457 of the Internal Revenue Code. These amounts are invested in savings accounts, certificates of deposit and other prudent «� I investments. The City retains title to these funds until withdrawn by the employee, which :nay take place at termination or any later date. The assets of the plan remain subject to the general claims of creditors of the City. The amount of deferred ca%iensation payable at June 30, 1987 ' was $8,939,926 which represents the market value of the investments. ' Since the City has a fiduciary responsibility to administer the plan, the assets are recorded in an agency fund in the City's financial statements. •. . I The assets of the plars must remain the property of the City until paid or made available to the participants. I 5, DEFMFAM REVEL: Certain revenues in governmental funds due from the Redevelopment Agency have been deferred until received from the Agency. Interest on these amounts accrues at 10% per annum. They are detailed below: GENERAL, RW: Sales price of the Huntington Breakers apartment site in 1983 $ 405,536 Development fees deferred in 1984 and 1985 302,539 1987 Sale of land in Main/pier project area 1,228,381 Interest on above amorous and on general fund advances from 1978/79 to 1986/87 1,437,947 Total General Fund $3,374,403 See accountants' report 26 2 7� -- w CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 5. DEFERRED IMM2WE (CuRrnWED): i SPWIA.L REVOM FUNDS: Park Acquisition and I]evelofinent F`ud: Sale of Emerald Cove site to Redevelopment ' Agency 1,917,570 Development fees deferred in 1985 247,664 Lard sale proceeds paid to Emerald Cove 832,430 Interest on above amounts 941,966 Total Park Acquisition and Development Eland 3,939,630 server Fund: -i Development fees deferred in 1985 43,459 1 Interest on above amounts 9,127 Total sewer Fund 52,586 _i Planned Local Drainage: Development fees deferred in 1985 72,396 Interest on above amounts 15,204 _J Total Drainage Fund 87,602 -� Grant: Deferred grant revenues 2,768 Total Special Revenue Funds $ 4,082,566 Total Deferred Revenue $ 7,456c989 6. mummm PUN ryi The City is a participant in the Public Employees Retirement System (PERS) of the State of California covering all of the City's p-.rmanent employees and teaporary employees who work over a specified number of hours during the year. Employees are either considered safety or miscellaneous J �I See accountants' report 27 r i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS � (continued) JUNE 30, 1987 6. RE".IRRNVlr PIAN (CQ'I.IIM): mnri�ers. Contributions to the system are h:,ssed on rates set by PERS based r" on certain actuarial assuRptionis, such as length of employment, estimated i salary rates, mortality rates, projected retirement benefits and other factors, Pension oasts are recorded as expenditures in government funds �- and expense: in proprietary funds when the related salary is incurred. i There are separate plans for safety and non-safety employees which are separately recorded by PERS. Information below is for both plans combined. Total pension expenc;e for the year ending ,Tune 30, 1987 was r $7,095,774, of which $1,103,393 was for prior service coats. Actuarial information related to the plan was not available from PERS for June 30, 1987. However, at June 30, 1986, plan net assets available for benefits totalled $94,934,294. and the present value of the City's unfunded pension obligation for prior (service costs totalled $12,013,715, which will be funded through the year 2000 through established contribution rates. The -- actuarial present value of vested and non-vested benefits is not I determined under the PERS system of accounting. j 7. SM II9CQfA M: The City is self-insured for workers' compensation, general liability and certain health claim. The self-insurance covers the first $150,000 for worker's e[ensation claims and the first $75,000 of each health claim. Claims in excess of self-insurance limita are covered by insurance up to �- $1,000,000 for health and the statutory limit for workers' caar1pensat:ion. The City maintains no general liability policy. " Self-Insurance activity is recorded in an Internal Service Fund. It is the City's policy to charge expense claims that are reasonably -- determinable and where the evidence of the City's liability is probable in accordance wi, ', GASS Code Section C.50.110. Expense is recognized for claims that have r)cmwred but have not yet been reported to the City. Charges are made , the Self-Insurance E1und to other funds based on estimated costs. liability for self-insurance claimac includes an estimate for amountu erred but not reported at year-end. Transfers frcen the General Fund ^riodically made: to cover deficits caused from inadequate charges to oth- ",ends. See a--countants' report 28 V71 1 I CITY OF IJUNTINGGi k_ REACH NOTES TO FINANCIAL, STA''TMENTS (continued) JUNE 30, 1987 a. Receivables/ Payables: Individual interfund receivables and payables at .Tune 30, 1987 wc"•re as follown: Due from/ Due to/ Advances to Advances frc:m Other Funds ,_ Other Funds ' General Fund $12,750,547 Special Revenue FU ds: Sewer 52,586 Planned Loral Drainage 87,602 Grange 1,064,483 Park Acquisition and 3,939,630 $1,000,000 Development Enterprise Funds: Water Utility 171,770 Einerald Cove Houaing 943,841 General Long-Term Dept Acount Group 16,122,777 _J Ibtals $18,066,618 $184066,618 The amount payable from the Park Acquisition and Develgxw nt Fund to the General Fund is intended to be raid within one year and is classified on 7 the balance sheets as current. The remaining amounts are long-term in nature. atna are classfied as long-term. During the year the City reclassified amounts representing land sale proceeds that had originally been recorded as contributed capital in the Emerald Crave Housing Fund. The amount is now intended to be repaid to the Park Acquisition And Development Fund from the Emerald Cove Fund since tine land was originally owned by the Park Acxlaisition and Developmnt Fund. The Emerald Cry.,e dousing Fund "contributed capital" has been reduced by $832,430. The amount is also shown as deferred revenue in the Park A^�+i sition and Developmnt Fund (see note 5). I i See .accountants' report 29 I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) �- JUNE 30, 1987 ^ 1 8. INMW= TRAl+i8MTIUM (COWDR 1 b. Operating Transfers:: Below is a schedule reconciling total operating transfers in with total ! operating transfers, out: Operating transfers in $3,447,565 Plus current year transfers to Dguipnent Replacement 1,037,523 Fund (a proprietary find) which were recorded as contributed capital in the Equipment Replacement Fund r Plus transfers from Low Income Housing Fund to the Emerald Cove Housing Fund (a proprietary fund) whit, were recorded as contributed capital in the Emerald 54,050 Cove Hoaxing Fund. Operating transfers out $4,939,138 c. Residual Bquity Transfers: Residual equity transfers consisted of items related to the defeeaaance of Public Facilities Corporation leasehold Mortgage Bonds- lst Issue, and the -- issuance of the Huntington Beach Civic Improvement Corporation Certificates of Participation described in note 14. Certain rash Which, prior to the defeasance had been held by a trustee, was transferred from the Public Facilities Corporation to the City and the -- Civic U provement corporation. Also, because of re*,;rements of the Certificate Indenture, certain certificate proceeds were transferred from the Parking Structure Capital Projects Fund to the Civic Improvement Corporation Debt Service Fund. Below is a summary of theze residual equity transfers: N — See accountants' report 30 i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 1 a. DMMM "Mom) c. Residual Equity Transfers: Civic -� lMrovettient Corporation General Debt service ..� TRANSFERRED M: Flur d Fund Total r. TRANSFERRED ET M: Public Facilities Corporation Debt $3,019,017 $ 958,867 $3,977,864 service Rtmi Public Facilities Corporation Capital 713,740 0 713,740 Projects Fund -� Parking Stracbtmd Capital Projects Fuld 0 1,045,509 $1,045,509 J Zbtal 53,732,757 82t004,376 $5,737s133 9. SIMM MR BNrORPRISE FLIM: The City maintains three enterprise funds; Water utility, Meadowlark Golf Oourse and Emerald Cove Housing. Certain ke.1 financial data was an follows: 1 l .J ! See accountants' report 31 V CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEKENTS (continued) JONE 30, 1987 9. SBm71` *VMaN FM ENIT1iFitYSE FtlriiH (OaNTIHLM. MEADOWLARK E?MRXD PATER GOLF ONE __._.tmLm COURSE HOUSING TOTAL Operating _ ReAenuee S 5.9,161,618 $ 229.984 6•_18i012 $10,009,614 Depreciation Eq nft S 1,216,974 $ 27,537 1 79.375 $ 1.,323,886 Operating Income (Loan) ($_531,132) S 202,447 ,� 251,242 ( 77,443) Net Income (Loss) 202,517) 116,377 (S 77,775){$ 163,695) Contributed Capital Reoeived, Net S 1,203,011 0 ( $778,380) $ 424,631 Net Aoquisitions (Dispositions) of Fixed Assets S 1,545,692 S 0 0 $ 1,545,692 Net. Working Capital 5 3,942,286 S 504,953 L_960,877 $ 5,408 116 Total Assets 634,732,007 �3,7824374 6,901,232 545,415,613 � Longterm � ,l obligations, Net of Current Portion $ 910,615 $1,728,865 �4,510,428 $ 7,149,908 Total Dguity $31,747,002 $1,984e273 1.359,296 $35x090,571 J J t See accountants' report 32 2 g� `- CITY OF HUNTING'TON BEACH Nri ES TO FINANCIAL STATEMENTS (continued) JUNK 30, 1987 1 10. CERWAL I00-11M Rom: Below is a wAm of c in general--� ry hand gene long-term debt for the year ending Jung 30, 1987: 1 Balance Balance Outstanding Outstanding July 1, Additions June 30, 1986 (Retirements) 1987 1970 Park Hoods $ 3,165,000 _ $ ( 280,000) $2,885,000 Public Facilities Corporation raeshold 7,440,000 (7,440,000) 0 MDrt B0nds- lent Issue Public Facilities Corporation Leasehold 3,410,000 (200,000) 3,210,000 mortgage Bonds- 2nd Issue -� Parking Authority 1,060,000 (115,000) 945,000 Re mme Btnds: Civic Lvrmement Corporation Certificates 0 20,000,000 20,000,000 f of Participation -' Ooaatal Cionservaincy 425,000 0 425,000 Note -' meted Absox.-cm 3,277,869 297,681 3,575,550 Advances 11,825,857 4,296,920 16,122,777 ' r Funds -1 Amotmta Due Under i Cwner Participation Agrewmt 0 1,408t047 1,408,047 Total $30,603,726 $17,967,648 $48,571,374 -,, Seen accountants' resort 33 —� `�/v 4f . i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 r 10. GBIWAL 14Wx- RN Obi' ([URrIINW): a. 1970 Park Honda: I C)n March 1, 1970 the City sold $6,000,000 of oral obligation bonds to r- ampire and construct perk facilities. Principal matures annually on March lot with interest, at 6%, payable semi-annually. The annual debt ,service requirements to amortize the bonds outxtanding at June 30, 1987 are as follows: r i. Year 841ing r. June 30, PrinciMl Interest Total 1988 $295,000 $173,100 $468,100 r. 1969 310,000 155,400 465,400 1990 305,000 136,800 "1'800 1991 350,000 118,500 468,500 1992 370,000 97,500 467,500 1993 395,000 75,300 470,300 1994 415,000 51,600 466,600 1995 4451000 26,700 471,700 -- Tbtal §21885,000 $834,900 13 719,900 ! r b. FAmtington beach Public Facilities Corporation Leaasehold Mortgage Bonds-First Issue: The Huntington Beach Public Facilities Corporation Leasehold Mortgage V Bonds -let Issue were defeased on July 15th, 1986 as described in note 14. Funds totalling $6,940,860 were placed in an escrow account. The escrow account contained Federal securities with guaranteed returns which will fund the debt service to retirement. The total bonds outstanding at Jame 30, 1987 were $7,010,000. Principal matures annually on March 1 and bears interest ranging between 5.0% and 5.5% per annun, payable san•i-annually. - See accountants' report 34 t g `" CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS j (continued) JUNE 30, 1987 10. GRNWlL Tom! EM (CURrIMM): -' c. Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- second Issue: 1 on September 11 1972 $5,000,000 of leasehold mortgage bonds were issued to construct the Central Library oaWlex. The bonds are secured by a lease whereby the City annually transfers $399,000 to the Public Facilities Corporation. Principal matures annually on September lot with interest ranging from 5.0% to 5.9% per ann m payable semi-annually The annual debt service i quireaents to amortize the bonds outstanding at June 30, 1987 are as follows: YearEnding June 30, Principal Interest Total 1988 $ 210*000 $ 170,812 $ 380,812 -j 1989 230,000 158,712 388,712 1990 240,000 145,667 385,667 1991 260,000 131,667 391,667 J 1992 270,000 116,827 386,827 1993 290,000 101,002 391,002 -� 1994 305,000 83,968 388,966 1995 320,000 66,000 386,000 1996 340,000 47,025 387,025 1997 360,000 28,250 388,250 1998 385,000 9,625 394,625 Total 3,'� ,210,000 $1,059,555 $4,2690555 , See accountants' report 35 J CITY OF HUNTINGTON BEACH 1 NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1907 10. (�'AL Lt MG-TM LWr (CCKfn[=): d. Parking Authority Revenue Bonds: On September 1, 1968 $2,300,000 of revenue bonds were issued to construct �. off-street parking i::provements. The bonds are secured by a lease which requires that the City budget annual transfers to the Parking Authority � sufficient to meet the dekt service requirements on the bonds. Principal matures annually on September 1 and bears interest at 5.25% per ann m, Payable semi-annually. �- The annual debt service requirements to ammortize the bonds outstanding at r' June 30, 1987 are as follows: Year .� Ending t June 30, Ptinciial Interest Total 1968 $ 120,000 $ 46,463 $ 166,643 1989 125,000 40,031 165;031 �- 1990 135,000 33,206 168,206 1991 140,000 25,988 165,988 '- 1992 150,000 17,849 167,849 1993 160,000 10,238 170,238 1994 115t000 3,019 118,019 ,- Total $ 945,000 $ 176,794 $1,121,794 I e, Huntington Beach Civic IWrove ent Corporation Certificates of Participation: On July 15, 1986 the Huntington Civic Improvement Corporation issued $20,000,000 of certificates of participation in order to defease the Huntington Beach Public Facilities Corporation. Leasehold Mortgage Bonds- First Issue and construct certain parking facilities (note 14). The Civic Improvement corporation owns the Civic Center complex and leases it to the See accountants' report 36 , j 1 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATENENTS (continued) JUNE 30, 1987 10. Gomm irwa-1m DW ta0mwa=): � e. Hurttirxltm Beach Civic Improvement Corporation Certificates of Participation: l City. The City has agreed to make annual lease payments equal to debt service requirements on the certificates. The interest rates on the certificates varies between 4.75% and 7.95k. Interest. is payable semi- annually on February lot and August 1st with principal maturing annually j on August 1st. Debt service requirements to maturity are as follow: ^i+ Year Juan 330, Prirraigal Interest Total 1988 $ 170,000 $ 1,530,425 $ 1,700,425 1989 220,000 1,520,613 1,740,613 1990 230,000 1,508,225 1,738,225 1991 245,000 1,494,263 1,739,263 1.992 260,000 1,478,788 1,738,788 1993 275,000 1,461,725 1,736,725 1994 295,000 1,442,831 1,737,831 1995 315,000 1,421,850 1,736,850 1996 335,000 1,398,765 1,733,765 1997 360,000 1,373,565 1,733,565 1998 385,000 1,346,180 1,731,180 1999 415,000 1,316,373 1,731,373 2000-2007 4,715,000 9,079,141 13,794,141 t 2008-2016 11,780,000 51233,752 17,013,752 J Total $20,000,000 , 3le606,496 $ 51,606,496 - f. California Coastal oonsetvancy Note Payable: In March, 1983, a storm damaged the mmicipal pier. The California Coastal Conaermncy agreed to lend the city $425,000 to cater a portion of the repair oasts. The first $150,000 of the note bears interest at 8.00% -� per annLm and the remaining $275,000 bears interest at 8.86% per annum. Payments comnance July 1, 1987 and are due annually thereafter until July 1, 1997. Fixture required payments on the note are as follows: ' � I I J See accountants' report 37 I I 1 ^. 1 i , t CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JOHN 30, 1987 10. anamALwwa-2im Dwr (Ownwv: 1 , f. California Coastal Conservancy Note Payable: Fiscal Year ErdiM June 30, Amount 1988 $66,796 1989 66,796 1990 66,796 1"1 66,796 1992 66,796 ; 1993 and after 338,971 $ 672,951 ( ' Less Interest (247,r951) r- Principal at ( ! June 30, 1987 $ 425,000 t g. meted Absences Payable: r I � r There is no fixed payment schedule to pay the governmental furid liability of $3,575,550 for corq sated absences earned through June 30, 1987 (see note le). h. Long-term Advances from Other Funds: There is no fixed repayment schedule for the Redevelopment Agen,,-y to pay Y the long-terns advances from the City which totalled $16,122,777 at June -- 30, 1987. Below is a description of the various transactions: See accountants' report 38 _. ?.,$7 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNK 30, 1987 10, aemwAL Lac,-Tim Dr (cournaM): h. Long-term Advances from Other Fwwb: i Bale of land the Park eition and Devel nt by �� �� Fund for $1,917,570 plus interest at 10% per ammn: $ 2,807,551 Sale of land by the General Fund in 1983 for $405,535 plus interest at 10% per ammn: 593,745 Cash advanorft from they General Fund from 1979 to the present totalling $8,267,096 plus at 10% per annLm: 9,448,419 J Cash a&4anme fram the Grant Pund in 1983- no intereerts 1,064,483 Develc►pers fees payable to various funds totalling $690,329 which are subaidizehd by the Agency with interest at 10% per annua: 835,298 Land sale_ im the General Fund in June, 1987 for $1,2284b: .,t 10% interest: 1,228,381 Advances from the Water Fund of $138,000 in 1986/87 plum interest at 10% per annun: 144,900 Total mount clue from other funds $16,122,777 1 f� Below is a reconciliation of the changes in amounts advanced from other funds by the Redevelopment Agency recorded as general long-term debt for [� the year ended June 30, 1987: IJ Amount due to other funds on July 1, 1966 $11,825,857 Advances Received 4,380,032 1 ` Reclassifications of deferrel revenue, see rate 8 (832,430) Transactions recorded in other funds as deferred revenue 749,318 J Amount due to other funds June 30, 1.987 $16,122,777 See accountants' report 39 CITY OF HUNTINGTON BLACK NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 10. GENWAL 100-Em (t7Ol9WKW): EI i. Amounts Due Under Owner Participation Agreement: In 1983, the Redevelopment Agency entered into an Owner Participation n Agreement (OPA) with Mala Development Corporation. The agreement set ( ' forth terms wherein Mola Development Corporation agreed to construct certain public improvements and right of way in the Oakview Redevelopment project area known as the Garter Centre improvements. The City agreed to purchase these public improvements for $1,408,047 and to defer receipt of building pemits and development fees, totalling $211,394 which would would normally have been payable at time of initial occupancy. The Redevelopment Agency agreed to advance these fees to the City. For the purchase of the public improvements and right-of-way, the IL Redevelopment Agency agreed to pay to Mola on or before July 1st of each year (beginning Judy 1, 1907) from tax increment revenue received by the agency directly attributable to the development by the Charter Centre ' the lesser of: . the costa of the public improvements and right of way totalling $1,408,047 plus interest accruing at 11% per annum (totalling $1,648,893 at year end). . an amount equal to 65% of the tax increment revenues directly caused by w the charter Centre improvements and received by the Redevelopment Agency during the 10 calendar years commencing with the 1986 calendar year. -1 The Agency has the right to offset the deferred development fees described above against the amrxmte due to Mola Development Corporation for the public improvements and right of way. On July 1, 1987, subskuluent to year end, the City paid to Mola Development ~ Corporation, $125,000 which represented the first installment payment on the right-of-way and public improvements. There is no fixed repayment schedule for this debt except that it mast be fully paid by December 31, 1995. See accountants' report 40 �� CITY OF HUNTINGTON BEACH J NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 U. PRt]]F'RIE'EW FM W04SM MU: The following is a nummary of changes in proprietary ftaid long-term debt for the year ending June 30, 1987: Balance Balance j Outstanding Outstanding July 1, Additions June 30, 1986 (Retire mta) 1987 1963 Water Fi veme Donds $ 1,053,000 ($ 184,000) $ 869,000 J San Joaquin 321,355 (49,570) 271,785 =+ Rtaervoir Note J Mamdowlark Golf oxwee Note 1,781,261 (25,312) 1,755,949 Dwrald Cove Certificates of Participation, net 4,497,633 12,795 4,510,428 of disms:t of $89,572 Cmpensated Absences 103,109 22,481 125g590 --� Thtal $ 7,756L358 ($223,606) $7 532,752 J r� J 1 _f See accountants' report 41 • rw I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JONE 30, 1987 r 11. PFIOPRIEzaW Fay LOG-TEM per (CURrIP&M: a. 1963 Water Revenue Honda: On November 1, 1963 the City sold $3,750,000 of revenue bonds to construct water itawovemcnta. The bonds are secured by revenues of the Water Fund. Principal matures annually on November 1 and bears interest at 3.5% per annum, payable semi-annually. ,.. The annual debt service requirements to amortize the Monde outstanding at 1 ' June 30, 1987 are as follows: Year i- owing Jame 30 Principal Interest Total 1988 $ 160,000 $ 26,326 $ 206,326 1989 180,000 19,915 1991915 1990 190,000 13,382 203,382 1"1 200,000 6,498 206,498 1992 119,000 2,083 121,083 r Total S 869,000 S 68,204 S 937,204 �. The bond indenture requires that the Water Fund net revenues equal or exceed 1.25 times the annual debit service requirement (principal and interest). Net revenues are defined as gross revenues lets rtaintmwxe and operation revenues, excluding depreciation. The City has canplied r with this requirement as shown below: Gross revmum $9,161,618 Operating expenses, excluding interest and depreciation 8,475,776 w Net revenues $ 685,842 Debt service $ 218,455 Debt service coverage 3.1 _ � W See accountants' report 42 i i CITY OF HUNTIRL'T R BEACH NOTBB To FINANCIAL STATzmNTS (continued) JUNE 30, 1987 1.1. NM M11301Y FM IONL-T= DEW (CCN1'IR): b. San Joaquin Reservoir Note Payable: In 1979 the City and several other local cities and water districts purchased the San Joaquin Reservoir. The City is paying a portion (13.56%) of the debt service for the 1961 construction of the reservoir plus operating and iuQrovement costs. In the-event of default, the expwnsesr and/or debt service payments shall be reallocated atsxng the rer fining nondefaulting owners in proportion to the percentage interest aid as though the party in default did not exist. The City has recorded its portion of the reservoir as a fixed asset in the Water Fund. The future required payments on the note are as follows: Year June 30 L P..aunt 1988 $ 60,228 1989 60,284 1990 60,464 1991 61,028 1992 54,984 296,988 Less avant representing interest (25,203) Principal outstanding at June 30, 1987 7S2 L 785 i -� See accountants' report 43 I r � i 1 CITY OF HUNTINGTON BEACH i NOTES TO FINANCIAL STATEMENTS (continued) JUN1E 30, 1987 r U. E774RY Fm rnwx4lm Dwr WxrrNm): c. Meadowlark Golf Course Note Payable: The City financed its tx=hanse of the Meadowlark Golf Course through a long-term 7% note. The note payable is collateralized by future revenues and does not represent; a general obligation of the City. The City has leased the golf course to an oiataide party car a minimm amount of $150,000 annually through 2007 and a percentage of income cased upon gross � revenues for the years 2008-2009. As part of the City's initial payment of $928,000 the County of Orange oontributed $600,000 upon the City's .•• guarantee to use general City funds, when and if ne+ceesary, to ensure that Meadowlark Golf course will be maintained as open space. The required payments on the note are as follows: Year Ending Required I June 30, Paymnt y i 1988 $ 150,000 1989 150,000 1990 150,000 1991 150,000 1992 and after 3,0151703 '� ! 3,615,703 u ;.- Leas amount representing (1,859,754.1 ~- interest Principal outstanding at June 30, 1987 11,755,949 See accountants' report 44 -03 low II I I 1 I I CITY OF HUNTING"ON BEACH NoTL5 TO FINANCIAL STATEMENTS (continued) JUNB 30, 1987 11. H10��f Ft3� IL�11Cr'Y'BW'! D@!fi' (ClLY4/PINi1ID): d. Emerald Cove Housing Certificates of Participation: on June 1, 1987, the PA&-velopment Agency sold certificates of participation to finance the construction of a senior citizens aparUwnt complex. The certificates bear interest at 9.5% per annu m, which is payable semi.-annually. The land upon which the project is being built was sold to the Px developwnt Agency by the City. The City is leasing hack the project and operating it as an enterprise. Lease payments, equal to ' interest of $36,417, are payable monthly. The holders of the certificates have a proportionate interest in the lease payments to be made lilt the City. The certificates are secured by the land and the buildings eonatructed, an assignment of ruts and an irrevocable letter of credit issued by a bank. A discount of $126,500 is being amortized to raturity. Below is a schedule of debt service reguirevents to maturity: Year Ending .Tune 30. Principal Interest Total 1988 $ 0 $ 437,000 $ 417,000 -, 1989 0 437,000 437,000 1990 0 437,000 437,000 -' 1991 0 437,000 437,000 1992 0 437,000 437,000 1993 0 437,000 437,000 1994 4,600a00 400,583 5,000.583 Totals. 14,600,000 $3,022,583 57,622 L5a3 Ir e. C urpeneated Abset=s: t There is no fixed repalr c•rit schedule to repay the coap-ansated absences for J proprietary ftrO types $125,590 at June 30, 1987. l� I � 1 See ace-untants' report 45 14q i CITY OF HUNTIN=N BEACB ROTES TO FINANCIAL STATPMENTS (continued) r .TONE 30, 19e7 r 12. a8As IN ern Assess: , Below is a schedule of the changeec in general fixed assets for the year: Balance Balance I July 1, 1986 Additions Dispositions June 30, 1987 I bend $ 30,864,013 $8,051,904 $ 1,012,894 $37,9.i3,023 ... , Buildings 25,158,461 0 0 25,158,461. Machinery and Bgtdpoent 9,333,328 0 9,333,328 0 other 7,582,167 0 5,849,891 _ 1,732,270 Total 6 72,937,969 S8,051,,904 216,196,119 $64,793,754 Belay is a sche&le of changes in proprietary fund fixed assets for the year. Balance Balance Entexprime Furdu: July 11 1986 Additions DilMsitione June 30, 1987 '- Lund $ 4,751,395 0 $ 19,958 $ 4,731,437 Buildings 5,200,795 0 0 $ 5,200,795 Machinery and Fq Apment 45,016,018 1,579,119 13,470 $46,581,667 -- Total Coast $54,968,208 $$1,579,119 S 33,428 $56,513,899 _ Leas accmtlated depreciation (18,957,032) (20,269,825) 1 Net Tx)ok Value, 3$ 6,011,176 $36,244,074 Enterprise ft-ds M i See accountants' report 46 i' �1 CITY OF BUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS "? (continued) JUNE 30, 1987 12. C9AN= in VIM ASORS (C0WrINW)): Internal Service Balance Balance 'duds: July 1, 1986 PAditions Dispositions June 30, 1987 Machinery md $ 1,944,035 A17r,840,300 8 333,000 $19,451,335 &,Ptipm,�t: Leas aamawl.ated i 1 depreciation (1321023) (8,839,654) Net: Brjok Value, S 1,812,012 $10,611,681 Internal Hervice -, 13. Rff=M AM DE S7341 WICHS (W FUND OWI Y: 1 Under the provisions of GASB Code Sections 1800.121-123, the City has set - up reserves and designations of fund equity. Reservew indicate amounts which carmotr be appropriated in famm periods or Which are legally set aside for a qxcific future use. Designation8 represent amounts that them J City has made tentative plans to use in a future period. The city's reserves and designations are describad below: I J See accountants' report 47 fr (y I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JONE 30, 1987 I� i � 13. Rsmms Am O mIGWIONS OF FEW EQUITY «) Internal special Debt Capital Service/ General Revenue Service Projects Enterprise Fund EHnds Funds Funds Funds r RESERVES Encumbrances $1,934,542 $3,461,506 $ - $ - $ - Lnng-tens �•+ receivables 8,376,193 1,202,032 - - - Rent - 585,334 - - - agreaffma*s Continuing projects - - - 15,105,351 - r' t7&L service - - 6,925,942 - 16,676 r Land held for renale - - - 3,009,109 - Inventory 146,073 - - - - (- DESIC44ATIONS j expenditures - 1,656,417 - - 408,000 Ctther fund ' deficits 1,563,034 - TOTAL 512,019,842 $0,905,289 $6,925 942 ,518,114,460 42$ 4 676 _ _„ r See accountants' report 48 ?fit 7 " ? s CITY OF liDHTIRGTOH BEACH NOTES TO FINANCIAL STATEMENTS < (continued) JUNE 30, 1987 13. RESORM AND nes IM of Fug► 8WM (CMffIHoPD) a. Reserves for et cukranoes represent amounts cannitted for unperformed services or for undelivered goods where a comi.tment to purchase has beers made. I b. Reserves for long-term receivables represent amounts included in advances to other funds and other receivables which are not achrdulL-d to be nepaid until future years. c. Reserves for reimburawmt agreements represent expected future --� :emits to developers for sewer and drainage ccnstruct3.on. I d. Reserves for continuing projects represent amounts camitted for long- term projects nut yet completed. e. Reserves for debt service represent amounts accumulated in debt service funds or set aside in another fund in accordance with a bond irxienture or 1 similar covenant. I f. Reserves for Dud held for resale represent land held by the Agency that is legally em nitted for resale: g. Reserves for inventory represent amounts for general supplies. inventory. -1 h. Designations for subsequent years' expenditures are made to provide for deficits budgeted in ant years. i. Designations for other fund deficits represent amounts to cover feud deficits in the Self-Insurance Fund. 14. DEMqk= OF HMM;" MKS PUBLIC FXWAT332S 03WOWli, LENNOM PER7CZ WNW- 1W ISM: On July 15, 1986, tba newly-fo:inEd Huntington Beach Civic Improvement ., Corporation issued $20,000,000 of certificates of participation to provide for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- let Issue and construct certain parking improvem mtci. Tile certificates were issued on July 15th, but the proceed$ weren't delivered until August 13th. J 1 J See accountants' report 49 J �,9� I • M�1 CITY OF HUNTINGTON BEACH I NOTES TO FINANCIAL STATEMENTS (continued) ^' JUNE 30, 1987 1 1 14. EEVEMPACE CW BUNTDOMM HENS PLUUC PKJ[Y.YTIE9 1W10N IWWROOCD M:R GAM HumBr- IST ISSUE ( ): $6,940,660 of the proceeds of the certificates were placed in an escrow account consisting of U.S. government securities which will fund the debt service requirements of the Public Facilities Corporation Leasehold Mortgage Bonds- let Issue to maturity. As a result these bonds are considered to be defeased and have been removed from the General Long-Term Debt Account Group. The City and the Public Facilities Corporation discharged their lease and sublease dated September 15, 1972 and all land and improvev.mts reverted to the City. The City then transferred all land [A and improvements to, and entered into a thirty year lease agreement with, the Huntmyjton D&ach Civic Improvement Corporation. r 'l:ae bcrAs were defeased because City management determined that financing would have to be obtained to construct desired parking and other public iWravementas in the downtown area. Significantly lower interest rates were obtained by forming the Civic Improvement Corporation to obtain the cash from the certificates to defease the P;hlic Faciliti"-:s Corporation bonds since the Civic Improvement Corporation now owns the Civic Center telex whicli represents the security for the certificates. Financing for parking improvements without similar security l,xxxdd bear prohibitively high interest rates. Thus, even though t ,Are is a net economic lose of $402,376 as shown below, City management feels that the resultant interest ravings f ismL long-term debt with the Civic Venter lex as n.n9 raro u.ng ongocrmp security will be significant. Below is a schedule of smu-ces and uses of the certificate proceeds: -� I Sourr*s Principal amount of new debt $20,000,000 Interest earnings (7/15/87 to 8/13/87) 119,347 Underwriter discount (344,000) -1 Issuance discount (106,000) ! Total Sources �19,669,347 r' J J Sep_ accountants' report 50 vf f CITY OF dUNTINGTON BEACH NOTES TO FINANCIAL STATENENTS � -� (continued) i 4 JUNE 30, 1907 i 14. DEPWOMM OF UbVINMM HEMS MANGIC P11CQ.ITIffi I,Ph9SM'D ldCW BMW- 19T ISSUE (CMIIK)) IUses Deposit to escrow fund 6,940,860 Issuance coats (non-recoverable), transferred to Civic Inprovenent 129,074 corporation, em note 6 other transfers to Civic Improvement 916,345 7 Corporation- see note 8 Proceeds to Parking Structure Capital 11,682,978 Projects Rn-d 7 Total Uwe $19,669,347 7 The net proceeds of the certificates are 012,609,140 which is recorded in _l the Parking Structure Capital Projecta Fund as proceeds of long-term debt. The ararxmt is ccepurted as follows: 1 Total proceeds $20,000,000 Less underwriter discount (344,000) ., Lem issuance discount (106,000) J Leers deposit to escrow fmid (6,940,860) Net Proceeds $12,609e140 -1 The effective interest rate of the new certificates is 8.07029%. The effective interest rate target is $19,540,273 which is Boar-sited as -1 follows: i Total proceeds $20,000,000 Plus interest earnings fram 7/15/87 119,347 to 8/13/87 -� Less underwriter discount (344,000) Less issuance discount (106,000) �1 Less issuance costs (129,074) .J Effective interest rate target $19,540,273 J See accountants' report 51 , PM i CITY OF HUNTINGTON BEACH MOTES 70 FINANCIAL STATEMENTS (continued) JUNE 30, 1987 I ' 14. EKWWMNM OF HNi'X'W"M BEVA C PP/-,LLxrHS IPNWAD= lU�1CA0E BaWg- M ISSUE MuNrI UM): Below is a calculation of the net economic Toes (tonal cash flows " discounted at effective interest rate) and difference in total cash flow requirements from the defeasanae as of July 15, 1986: r! I . tlet Economic Loss Present value of defeased Public Facilities Corporation bonds $ 6,657,810 ' Present value Civic Uprovexnt Corporation certificates adjusted for net proceeds received $(7,060,186) � Faormomic loss $ (402L376) :.1 I ' 1 Cash Flow Differences Total debt service requirements of defeased Public Facilities Corporation bonds $10,301,130 Total debt service requirements of Civic Improvement 1 Corporation certificates of $52,441,921, reduood by net proosede of received of $12,609,140 ($39,832,781) Difference of cash flows ($294531,751) r See accountants' report 52 �b � CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATOWNTS (continued) JUNE 30, 1987 I ' 15 AOCOUCING Beginning July 1, 1984, the Wjuipment Replacement Fund bacatae responsible for replacing all non-enterprise equipment. However, new equipment which did not replace existing equipment was pu=haeed from the general or other governmental funds and carried in the General Fixed Assets Account Group,, Effective July 1, 1986, all non-enterprise equipment which does not replace existing equipment is recorded an a transfer from the reactive fund and as contributed capital in the Equipment Replacement Fund. on July 1, 1986 the net book value of all machinery and e. aipnent carried in the General Fixed Assets Account Group was transferred to the Hquipment Replacement Fund. The machinery and equipment in the General Fixed Assets Aevcront Group had been recorded at cost without considering depreciation. The transfer into the Uquipment Replacement Fund was at depreciated book value and in shun as contributed capital. Below is an analysis of the transfer: Transfers out of Generals Fixed Assets Account Group, (CcA of Machinery and Dquipuent in General Fixed Aeoets Account GrcW at July 1, 1986) $15,183,225 Accumulated depreciatioa on machinery and equipment transferred to Equipment Replacement Fund (7,327.403) Contributed capital (net book value of equipment transferred) recorded in Equipment Replacement Fund due to transfer in of iachinery and equipment ,$ 7,855,855 16. LMV DLtNx'f M: During the year, Pacific Railroad Corny donated land valued at $371,619 to the ReclevelgpTent Agency Capital Projects Fund which will be used in future Agenv-T activity. The land is recon ed in the Redevelopment Agency -� Capital Projects fund as "Land Held for Resale" on the balance sheet with an appropriate reservation of fund equity. The contribution is recorded as an "other firming spout-ce." See accountants' report 53 30t on A CITY OF 8DNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS P4 (continued) II JUNE 30, 1987 t r 17. cmmmous Am : a. Legal Actions: There are certain legal actions pending against the City that have ariben in the course of normal operations. In the opinion of management and Jie City Attorney, the ultimate resolution of these actions is not expected to have a significant impact on these financial statements. b. Mortgage Revenue Bonds: The City established a program in February, 1983 to provide funds for the � purchase of hone mortgagee within the City. Under this program, a total of $40,000,000 of mortgage revern:w. bonds has been issued, $20,000,000 in March, 1983 and an additional $20,000,000 in July, 1984. The bonds are payable from, and are sect wed by, a plex1ge of payments made on the haae mortgages and all funds held by the trustee under the indenture agreements. The bonds are not an indebtedness of the City and there exists no legal obligation on the part of the City to make pke ments on the bonds from any source other than the revenue aril assets that were pledged. Accordingly, this program has been excluded from the aeco eying combined financial statements. c. Land Purchases- A.C. Marion: The City has entered into an agreement during the year to purchase a parcel of land from a private party for $3,190,000. The agreement r- required the City to pay $1,000,000 for the purchase of phase I of the parcel. For the next four year$ the City may purchase one of the reraituM phases each year. For the use of the remaining parcels the City pays a rental/option fee which is paid Quarterly on February 28th, May 31et, August 31st and November 30th. The City may cancel the agreement at any time in which case the obligation to pay the remaining rental/option fees or to purchase any retaining phases ceases. Listed below is the schedule of payments and rentallciption fees for tiv-- life of the contract: See accountants' report 54 I I I CITY OF HUNTING'TON BFACU NOTES TO FINANCIAL STATEMENTS (continued) JONE 30, 1987 i 17. a m-aww s AND 0Wrt03WKMW (CONrnNUIV: . i Fiscal Year ' Ending Purchase Quarterly June 30, Price Phase Renter 1980 $500,000 2 $138,658 r- 1989 500,000 3 108,002 1990 500,000 4 70,502 -� 1991 690e000 5 25,870 Total $2i190,000 . 345_ 3,038 18. PRIOR PERWO 1 a. Taxes Receivable: i t On June 30, 1986, the city did not accrue sales tax raoeivable totalling .� $1,098,900. The beginning General Fund Balance has been restated to reflect this correction: Total fts,d equity as originally reported $12,430,490 Adjustment $ 11098,900 7 Total fw d equity restated $13,529,380 �1 J J 'r I See accountants' report 55 a r i I CITY OF HUNTINGTON BEACB NOTHS TO FINANCIAL STATEMENTS (continued) DUNE 30, 1987 19. rRZOR PERIM b. Redevelopu nt Agency Lard Held for Resale: on June 30, 1986 the city did not r cord la►i held for resale by the hiedevelop ent Agency. The amount ti. ,t• AmixAAid have been recorded ww $1,277,109. The Redevelopment Agency Capital Projects Fund fund equity at June 30, 1986 has been restated to reflect this change: r 1 ' 'lb►tal fund equity as originally reported $1,532,097 Adjustment 1,277,109 Retained earnings restated ,$2,809,206 i r 19. 07M DID: t._ a. Fund Deficit- Self Insurance Ftzrd: The Self-Insurance Furd (an internal service fund) has a deficit retrained earnings of $1,563,034. This deficit will be funded in future years through increased charges to other funds. b. Fund Deficit- Water Fund: The Wager Fund (an enterprise fund) has a deficit retained earnings of $297,889. A rate increase was enacted in July; 1987 which will help this deficit to be eliminated in future years. c. Dudgetary Information: General Fund expenditures exceeded appropriations by $470,222, which represents a non-budgeted entry recognizing the decline in market value of titre City's investments at June 30, 1987 (am note 3). _ See accountants' report 56 ( i 36 � 5 I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 19V 20. SUBSEP.UW. EVPW'8 t an July 1, 1987, the City issued $5,000,000 of Tax and Revenue Anticipation Notes bearing annual interest of 4.50%. The notes mature on ^f June 30, 1988. I � I _ .r r i i ;III 7 I � i J J See accountants' report 57 _. - - _ �.�.r.+.+ -u.r�i.vawr.►aNu'�w.io'riaa�urwrsu.r"6��7:,.f1:.��f-.--a_,�:::�� i I f I 1 i i�6f4 V L[W ���io.flOJ� 07 W4 RLDIVIDUAL riFiPIIS PM r'q ! ACODOUT CUMPS I.1 n L_J -J �J 1 4 GENERAL FUND r., j The General Fund is used to account for all financial activity -hat is not required to be accounted for in another fund. _i �i _a I I -J D� SCHEDULE B-1 CITY OF HUNTINGTON BEACH n� 1 GENERAL FU?;D COMPARATIVE BALANCE SHEL'T June 30, 1987 and 1986 ASSETS 1987 1986 Cash and investments $ 10,884,333 $ 9,401,307 Taxes receivable 1,890,934 486*185 Accounts receivable 201,503 344,429 Interest receivable 43,368 51,763 Advances to other funds 12,750,547 6,788,235 Due from other agencies 462,462 150,218 Deposits and other assets 216,551 179,200 TOTAL ASSETS $ 26,449,698 17,401,337 LIABILITIES AND FUND BALANCE j LIABILITIES: Accounts payable $ 1,341,838 $ 1,180,524 Accrued payroll 2,212,343 1,933,167 Deposits 776,586 558,628 Deferred revenue 3,3744403 _ 1,298,538 TOTAL LIABILITIES 7,705,170 4,970,857 FUND BALANCE: f Reserved for encumbrances 1,934,542 1,237,826 'J Reserved for long-term receivables 9,376,193 59489,697 Designated for other fund deficits 1,563,034 2,080,140 Unreserved/undesignated 5,870,759 3,622,817 TOTAL FUND BALANCE 18,744,528 12,430,480 J TOTAL LIABILITIES AND FUFFD BALANCE $_ 26,449,698_ S 17,401 L337 -58- �� a i I I SCHEDULE B-2 CITY OF HUNTINGTON BEACH GENERAL FUND j LTATEME14T OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the year ended June 30, 1987 With comparative totals for the year ended June 30, 1986 i f 1987 Variance - Favorable 1986 f Budget Actual (Unfavorable) Actual REVENUES: Property taxea $ 20,391,000 $ 21,174,423 $ 783,423 $ 18,456,192 ! Other taxes 29,637,100 28,698,414 (938,686) 27,622,057 Licenses and permits 3,195,400 3,308,990 113,590 3,042,450 Fines, forfeitures, and ' penalties 2,195,000 2,095,714 (99,286) 1,973,670 ' From use of money and property 3,994,500 4,397,997 403,497 3,782,431 From other agencies 7,363,600 7,880,417 516,817 7,125,470 !� Charges for current services 2,573,900 2,799,219 225,319 2,525,401 Other 512,402 456,006 (56,396) 735.484 TOTAL REVENUES 69,,862,902 70,811,180 948,278 652263,155 EXPENDITURES: Current: City council 85,669 82,121 3,548 90,029 City Administrator 568,191 5550452 12,739 488,064 City Treasurer 289,888 281,848 8,040 266,648 i City Attorney 567,783 563,804 3,979 644,685 City Clerk 133,484 1520622 (19,138) 163,608 Administrative services 2,734,699 2,680,065 54,634 2,600,737 Community development 1,860,533 1,849,015 11,518 1,773,596 Fire 11,267,922 11,186,607 81,315 10*236,204 , Police 20,892,160 20,511,085 381,075 18,729,315 Community Services 6,139,176 5,959,254 179,922 5,585,738 Public works 15,967,564 14,567,248 1,400,316 14,911,530 Non-depArtmental 7,133,395 7,708,794 (575,399) 6,795,596 Capital outlay 1,915,543 1,027.809 887,734 2,186,520 TOTAL EXPENDITURES 69,556,007 671125,724 2,430,283 64,492,270 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 300,8951 _ 3.6852456 3,378,561 770,885 OTHER FINANCING SOURCES (USES): Operating transfers in 1,300,000 1,284,790 (15,210) 1,221,368 Priceede of long-term debt - - - 21.6,100 Operating transfers out (3,017,633) (3,017,633) - (1,423,951d) Loss on Investments (470,222) (4701222) TOTAL OTHER FINANCING SOURCES (US%3) (1.717,633) (2,203�065) (485,432) 13=518 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (1,410,738) 1,482,391 2,893,129 784,403 FUND BALANCE - BEGINNING OF YEAR 12,430,480 12,430,480 - 11,646,077 Prior period adjustment - 1,098,900 "1'098,900) - Residual equity transfers in 3,732,757 3,732,757 FUND BALANCA - END OF YEAR $ 14,753,499 18.744 528 $ 31992.029 412.430,4.80 -59- i i r SPECIAL REVENUE FUNDS i Gas Tax- This fund accounts for financial activity apportioned under the Street and Highway Code of California. Expenditures may be made for any 1 street-related purpose allowable under the code. Sewer- This fund is used to account for fees received from developers to construct new sewer facilities. -� Planned Local Drainage- This fund is used to account for fees received J from developers to improve and upgrade the City' s drainage system. Federal Revenue Sharing- This fund accounts for receipt and disbur5einent .:.f revenue sharing entitlements. Public Communications- This fund accounts for revenue received from cable television rights granted within the City limits. These monies must be spent on community-oriented television. ' -, Grants- This fund accounts for grant monies received from federal, state and county agencies not accounted for in other funds. Expenditures for these funds are restricted to the granting agencies requirements. Park Acquisition and Development- This fund is used for fees received __j form, developers 4o develop the City's park system. J i I it A CITY OF IIUNTINGTOII BEACH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET i r� i June 30, 1987 With comparative totals for June 30, 19% i i I Planned Federal Local Revenue ASSETS Gas Tax Sewer ,+Drainage Sharing P Cash and investments $ 3,709,669 $ 4,491,960 $ 3,322,561 $ 570,600 Accounts receivable - - 3,537 - Interest receivable 14,649 17,365 12,843 2,206 Advances to other funds - 52,586 87,602 - ' Due from other agencies 292,373 - - - Deposits and other assets - - - - i TOTAL ASSETS $ 41096,691 4 561 911 $ 3,426,543 572.806 LIABILITIES AND FUND BALANCES LIABILITIES: �^ Accounts payable $ 942,059 $ 7,913 $ 59,234 $ ` Accrued payroll - - Deposits 14,100 Due to other funds - - - - Deferred revenue - 52.566 870602 TOTAL LIABILITIES 956,159 609499 1461636 FUND BALANCES: Reserved for encumbrances 2,556,473 108,251 212,157 - r— Reserved for long-term receivables - - - - Reserved for reimbursement agreements - 26,181 559,153 - Unreserved: Designated for subsequent years expenditures 584,059 - 200,000 515$000 Undesignated - 4,366,980 2,308,397 57,806 TOTAL FUND BALANCES 3,140,532 4,501,412 31279,707 572,805- TOTAL LIABILITIES AND FUND BALANCES $ 4,0961691 LjIL611911 2 3,425 543 S 5724806 -60- SCHEDULE C--1 aq i 1 t Park Acquisition Public and Totals ..� Communications Grants Development 1987 1986 I $ 72,470 $ 345,115 $ 1,999,700 $ 14,592,075 $ 13,518,325 - 6311 - 4,175 - j 280 7,732 55,,,75 63,038 1,064,483 3,9390630 5,144,301 5,124,605 - 168,531 137,549 598,453 626,961 701 - - 701 - 13 451 $ 1,578,767 $ 6,084,611 $ 20,394,780 y„ �_9,332,929 -! $ 988 $ 50,403 $ 36,910 $ 1,097,5U7 $ 447,260 6,070 10,471 1,399 17,940 17,663 - 4,159 - 18,259 66,408 - 1,000,000 1,000,000 - 2,768 3,939,630 4,082,586 4,060,122 7,058 67,801 4,977,939 6,216,292 4,591 453 J 16,947 446,483 121,195 3,461,506 969,899 - 1,064,483 137,549 1,202,032 1,202,032 - - - 585,334 756,762 I - 357,358 1,656,417 2,877,449 49,446 - 490,570 7,273,199 8,935,334 -� 66,393 11510,966 1,106,672 141178,488 14,741,476 73 451 $ 1,578,767 $ 6,084,611 $ 70,394,780 $ 19,332,929 i i -61- A 1� 0 �n CITY OF HUNTINGTON Mk"11 SPECIAL REVENUE FUNDS rn COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 1 i For the year ended June 30, 1987 With comparative totals for the year ended June 30, 1986 i Planned Federal r Local Revenue ! Gab Tax Sewer Drainage Sharing REVENUES: Aa Other taxes Licenses and permits - 166,760 227,032 - From use of money and property 3319602 310,550 497,091 20,801 From other agencies 4,312j459 - - 245,030 TOTAL REVENUES 4,644,061 477,310 _ 724,123 265,831 WA EXPENDITURES: { Currents City Administrator Community development - - - - Fire - - - - Police - - - w Community services I Public works - - - - Capital outlay 4,720,203 846400 _ 223,174 TOTAL EXPENDITURES 4,720,1203 84,400 223,174 EXCESS OF REVENUES OVER. (UNDER) EXPENDITURES (76,142) 392,910 500,949 265,831 OTHER FINANCING SOURCES (USES): Operating transfers in - - - Operating transfers out (1,2842 790)..y (41,780) (2422244) (294,500) -- TOTAL OTHER FINANCING SOURCES (USES) (1,�284,790)• (41,780,' (242,244) (284.500) _ EXCESS OF REVENUES AND AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,360,932) 351,130 258,705 (18,669) FUND BALANCES - BEGINNING OF YEAR 4.5011464 4,150,282 3,021,002 ,- 591,475 -- FUND BALANCES - END OF YEAR $ 3,140,532 4,501,412 _C_3,279,707 $ _42,806 -62- `.. i C • SCHEDULE C-2 i Park Acquisition Public and Totals Communications Grants Development 1987 1986 $ 186,548 $ - $ - $ 186,546 $ 175,434 • - 1,215,767 1,609 .9 1,209,130 5,916 31;0262 103,028 1,586,s50 1,246,023 1t309,207 675,547 6,542,243 7,017,591 192,464 1,626,469 1,994,342 9,924,600 9,648,178 .1 1549500 - - 154,590 1419826 - 487,203 - 487,203 342,545 - - - 15,506 8,346 - 8,346 15,303 29,206 101,464 130,670 82,761 J - - - - 133,989 6.904 943,013 1,887,073_ 7,864,#767 9,085,352 161&4 1,467,768 1,988 L537 8,645,486 9,817,982 31,060 158,701 51805 1,279,114 (,169,104) - 22,728 - 22,728 2,000,000 (11.516) - (1,,864,830) (1,996,368) 11 16) 22,728 - (1,842,102) 3,632 19,544 181,429 5,805 (562,988) (165,472) 46,849 1,329,537 1,100,867 1.4,7419476 14,906,948 _f 6$ 6,393 1,510,966 $ 1,106,672 14,1781488 14,741,476 L OK -63- I _ SCHEDULE C-3 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS ' COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ! CHANGES IN FUND BALANCES - BUDGET AND ACTUAI. (Continued) on For the year ended June 30, 1987 GA TAX Variance - Favorable r Budget Actual (Unfavorable) r REVGNUESt From use of money and property $ 300,000 $ 331,60-7 $ 31,602 From other agencies 9,358,350 4,312,459 (5,045,891) TOTAL REVENUES 9,658,350 496441061 (5,014,289) ' EXPENDITURES t Capital outlay 14,312,258 417209203 9,592,055 l EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (4,653,908) (76,142) 4,577,766 OTHER 1INANCING USES t Operating transfers out (1,300,000) (1,284!790) 152210 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (59953,908) (1,3600932) 4,592,976 •- I FUND BALANCE - BEGINNING OF YEAR 4,501,464 4.501.464 - FUND BALANCE - END OF YEAR $(1.452,444)$ 3,140,532 $ 4,592,,976 ffiEti'ER i,BVENUL'S t Licenses and permits $ 105,000 $ 166,760 $ 61,760 From use of money and property - 300,000 310,550 10,550 M- TOTAL REVENUES 405,000 477,310 72,310 EXPENDITURES: Capital outlay 697,734 84,400 613,334 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (292,734) 392,910 685,644 OTHER FINANCING USES: Operating transfers out (412780) (41,78O) EXCESS OF REVENUES OVER (UNDER) `- EXPENDITURES AND OTHER USES (334,514) 351,130 68!,644 FUND BALANCE - BEGINNING OF YEAR 4,150,282 4,150,282 - FUND BALANCE - END OF YEAR $ 3,815,,768 $ 4,501,412 - 685,644 (CONTINUED) `- -64- 31 0 SCHEDULE C-3 CITY OF 11UNTING','ON BEACH w COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1987 PLANNED LOCAL DRAINAGE 1 Variance Favorable Budget Actual (Unfavorable) ' REVENUESs Licenses and permits $ 200,000 $ 227,032 $ 27,032 From use of money and property 250,000 497,091 247,091 From other agencies 100,000 - (1001000) 1 TOTAL REVENUES 550X000 724,123 174,123 1 EXPENDITURES: Capital outlay 1,424,185 223,174 11201 012 -� EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (874,186) 500,949 1,375,135 1 _.; OTHER FINANCING SOURCES (USES)s Operating transfers out (242,244) (242,244) - EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,116,430) 258,705 1,375,135 FUND BALANCE - BEGINNING OF YEAR 3,021,002 3.021.002 - FUND BALANCE - END OF YEAR 1,904,572 3,279 707 1,375,135 .a FEDERAL REVENUE SHARING REVENUES: I� From use of money and property $ - $ 20,801 $ 20,801 f-� From other agencies 300,000 2451030 (54,970) TOTAL REVENUES 300 000 265,831 (34,169) 1 OTHER FINANCING USESs Operating transfers out (284,,500) (284,500) f BXCRSS OF RMNUES AND OTHER SOURCES OVER I� (UNDER) EXPENDITURES AND OTHER USES 15,500 (18,669) (34,169) i, FUND BALANCE - BEGINNING OF YEAR ._ 591,475 591,475 - FUND BALANCE - END OF YEAR $ 606,975 572,806 (34,169) (CONTINUED) -65- 1 ^�11 SCHEDULE C-3 CITY OF HUNTINGTON BEACli SPECIAL REVENUE FUNDS COMBINING STATMIENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL � (Continued) i For the year ended June 30, 1987 PUBLIC COMMUNICATIONS Variance - Favorable Budget-` Actual (Unfavorable) ` REVENUESs Other taxes $ 213,000 $ 186,548 $ (26,452) Use of money and property 8,000 . 5,916 (2,084) TOTAL REVENUES 221,00 192.464 (288j 536) EXPENDITURES: City Administrator 184,637 154,500 30,137 Capital outlay 24,027 6,904 17,123,- TOTAL EXPENDITURES 208,664 161,404 47,260 a EXCESS OF REVENUE OVER ' EXPENDITURE3 12,336 31,060 18,725 OTHER FINANCING USES: Operating transfers out (11,516) (11,516) - EXCESS OF REVENUES OVER EXPENDITURES AND OTHER USES 820 19,544 181724 FUND BALANCE - BEGINNING OF YEAR 46,849 46,849 - FUND 1.UMCE - END OF YEAR $ 47,669 $ 66,393 18,724 l OTHER GRANTS RRVENUESt From use of money and propezty $ 47,000 $ 317,262 270,262 From other agencies 1,107,000 1.309.207 202,207 TOTAL REVENUES 1,154,000 1.626,469 472,,469 EXPENDITURES: Current: Community development 140,923 487,203 (346,280) Police 17,042 8,346 8,696 Community services ~ 30,622 29,206 11416 Capital outlay 4,650,134 943,013 3,,707,121 TOTAL EXPENDITURES 44838,721 1,467,768 3,370,953 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (3,684,721) 158,701 3,843,422 OTHER FINANCING SOURCES: --~ Operating transfers in 22,728 220728 - EXCESS OF REVENUES AND OTHER SOURCES OVER ` (UNDER) EXPENDITURES (3,661,993) 181,429 3,843,422 FUND BALANCE - BEGINNING OF YEAR 1,3 291357 11 329,537 FUND BALANCE - END OF YEAR $Q J32,636)$ 1,510,966 § 3,843,422 j (CONTINUED) -66- s SCHEDULE C-3 CITY OF IIUNTIIIGTO14 BEACH .-. SPECIAL REVENUE FUNDS COMBIVING STATMENT OF REVENUES, EXPENDITURES AND ^+ CHANGES IN FUND BALANCES - BUDCET AND ACTUAL (Continued) For the year ended June 30, 1987 I y PARK ACQUISITION AND DEVELOPMENT —+ Variance - Favorable Budget Actual (Unfavorable) REVENUES: Licenses and permits $ 1,100,000 $ 10215,767 $ 115,767 E From use of money and property 200,000 103,028 (96,972) From other agencies 974,000 675,547 (298,453) j TOTi-J, REVENUES 2,274,000 1,994,342 (279,658) -� EXPENDITURES: j Coaaunity Services 1310143 101,464 29,679 Capital outlay 2,557.409 1.887.073 670,336 TOTAL EXPENDITURES 2,688,552 12 988,537 700,015 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (414,552) 5,805 420,357 FUND BALANCE - BEGINNING OF YEAR 1,,100,867 1.100.867 FUND BALANCE - END OF YEAR 686,315 $ 1,106,672 $ 4204357 I 1 (CONTINUED) -67- • SCHEDULE C-3 CITY OF HUNTINGTON LEACIi SPECIAL REVENUE FUZIDS d� COMBMING STATEMENT C? REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) 1 For the year ended June 30, 1987 sr I TOTALS #� Variance - Favorable •� { Budget Actual (Unfavorable) REVENUES: Other taxes $ 213,000 $ 186,548 $ (26,452) Licenses and permits 1,405,000 1,609,559 204,559 From use of money and property 1,105,000 1,586,250 481,250 From other agencies 11,739,350 6,542,243 (5,197,107) Other 1001000 - (100,000) . I TOTAL REVENUES 14,562,350 9_.924.600 (4,637,750) i EXPENDITURES, E Current.: City administrator 184,637 154,500 30,137 Community development 1409923 487,203 (346,280) Police 17,042 80346 8,696 - Community services 161,765 130,670 311,095 Capital outlay 23,665,748 7,864,767 15,800,981 TOTAL EXPENDITURES 24,170,115. _ 8,645,486 15,524,629 EXCESS OF REVENUE OVER (UNDER) ' EXPENDITURES (9,607,765) 12279,114 10,,886,879 OTHER FINANCING SOURCES (USES): Operatiag transfers in 22,728 22,728 - OperaCing transfers out (1,880,040) (11864,830) 1.5,210 TOTAL OTHER FINANCING SOURCES (USES) (1,857L312) (1,842,102) 15,210 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (11,465,077) (562,988) 10,902,089 FUND BALANCE, - BEGINNING OF YEAR 14,741,476 14,741,476 - -- FUND BALANCE - END Ob YEAR $ 3,276,399 $14,178,408 10 902 089 -68- j i DUT ORVIC8 FIni1;B 197n Park Bonds - This fund records Lhe accumulation and distribution of monies to Beet the debt oervice requirements of the City's 1970 Park Bonds, a general obligation bond. Redeyelopeent Agency - This fund records the accumulation and disbursement of -, monies to meet the debt service requircme►tto of the Redevelopment. Agency. Public Facilities Corporation - This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Huntington Beach Public Facilities Corporation. Parking Authority - This fund records Lhe accumulation and disbursement of monies to meet the debt service requirements of the Parking Authority Revenue Bondo. Civic Improvement Corporation - This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Civic Improvement Corporation Certificates of Participation. J I CITY OF HUNTINGTON BEACH + DPBT SERVICE FUNDS j wr I I f COMBINING BALANCE SHEET I June 30, 1987 With comparative totals for June 30, 1986 r 1970 Park I ; Bonds ASSETS: Cabh and investments $ 81,913 ;.., � Cash with fioeal ©gent Taxes receivable 17,833 Interest receivable 317 TOTAL ASSETS $ 100,063 LIABILITIES AND FUND EQUITY c LIABILITIES: Accounts payable - FUND BALtsNCES r ' Reserved for Debt Service 100,063 TOTAL LIABILITIES AND FUND BALANCE LIRP,063 I r i r- r' -6 9- W sZZ { SCMULE A-1 1 f � i i Public Civic Redevelopment Facilities Parking Improvement Totals Agency Corporation Authority Corporation 1987 1986 i $ 1,691,166 v - $ - $ - $ 1,773,079 $ 543,322 - 1,045,760 1,297,590 1,902,182 5,045,532 6,233,240 14,125 - - - 31,958 13,751 j ?, 82 105 74,655 ..,537 35,489 34,762 � i �).,711,828 $ 1 881,249 1 1t337,352 $ 1,902,182 6,93,22. 74 $ 6,864,978 $_ 6,732 _ - - $ - � 61732 $ 1,70S.096 1,8811249 1,337,352 1,902,182 6,925,942 6,8641968 0 1,711,828 $ 1,881,249 $ 1,337,352 $ 1,902.152 6,932,674 $ 6l864 968 � � I J II a • CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS COMBINING STATEMENT OV REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES r• 1 For the year ended June 30, 1987 With comparative totals for June 30, 1986 1970 Park M. Bonds REVENUES: ' Property taxes $ 503,922 From use of woney and property 7,224 r" i TOTAL REVENUES 5111146 EXPENDITURES: ' Current: Principal 280,000 Interest 190,102 TOTAL EXPENDITURES 470,702 r- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 40,444 OTHER FINANCING SOURCES (USES): Operating transfers in t_ Operating transfers out .. TOTAL OTHER FINANCING SOURCES (USES) - EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 40,444 r FUND BALANCES - BEGINNING OF YEAR 59,619 Residual equity transfer ir. - Residual equity transfer out - FUND BALANCES - END OF YEAR $ 100,003 -71- 3Zy :- 1 SCHEDULE D-2 1 I { i / Public Civic Redevelopment Facilities Perking Improvement Tools Agency Corporation Authority Corporation 1987 1986 $ 1,127,001 $ - $ - $ - $ 1,630,92.2 $ 870,134 50,372 131,086 90,256 148,83r 457,773 527,606 1,207,373 131,086 90,256 148,835 2,088,696 1,397,740 1 - 200,000 115,000 - 595,000 960,000 - 386,177 521631 964,501 1,594,011 _ 88619,, .r 586,177 167,631 964,501 2,189,011 1,846 950 1,2077,,373 (455,041) .,_ (77,375) _ (8151666) (100,315) (449,210) - 1,253,900 170,050 713,472 2,137,422 1,423,950 2,625) _(22625-) (2,625) 71,253,900 167A425 713,472 21134,797 1,421,325 r' 1,-207,373 798,809 901050 (102,194) 2,034,482 972,115 497,723 5,060,324 1,247,302 - 6,864,968 5,892,855 i - - - 2,004,376 2,004,376 - ,_(3,977,884) ----- -- (3,977,884) 0 1,705,096 5 1,881,249 $ 1,337,352 $ 19 2j182 S 6,925+945 6 864,968 r _J I I �I SCHEDULE D-3 CITY OF HUNTINGiON BEACH DEBT SERVICE FUNDS � COMBINING STATAWNT OF REVENUES, EXPENDITURE'S AND ' CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the year ended June 10, 1987 ! } i 1270 PARK BONDS Variance - } Favorable w Budget. Actual (Unfavorable) REVENUEF Property tanea $ 462,000 $ 503,922 $ 41,922 From ust of money and property 53000 7,224 2,224 j TOTAL. REVENUBS 467,_g00 511,146 441146 } OPENDITURESs . . Principal 2809000 280,000 - Interest 195,000 :90,702 4,298 MIA I 4 TOTAL EXPENDITURES 475,000 470,702 4,298 EXCESS OF REVENUE OVER (UNDEF) EXPENDITURES (9,000) 40,444 48,444 FUND BALANCE - BEGINNING OF YEAR _ 59,619 59,619 FUND TJA.TANCZ - END OF YEAR $ 51,619 IDO,063 $ 48,444 W �v REDLVELOPMNT AGENCY REVENUESs Property taxes $ 887,400 $ 1,127,001 $ 239,601 From use of money and property _ 37.100 80,372 43�1272, TOTAL, 1W.VENUES 924,500 l 207,373 232 i873 PUMA DALANCE - BEGINNING OF YEAR 497,723 497,723 - FUND BALANCE - END OF YEAR $_ 1,422,223 1,705,096 S 2E11873 (CONTINU)ID) �Z� -73- CITY OF HUNTINGTON BEACH SCHEDULE D-3 DEBT SERVICE FUNDS COMBINING STATMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1987 tj PUBLIC FACILITIES CORPORATION fl Variance - Favorable Budget Actual (Unfavorable) REVENUES: From use of money and property y 331 30U 131,086 (200 214) EXPENDITURES: Principal 200,000 200,000 - „� Interest 583,312 386,177 197,135 f TOTAL F.X ONDITURES 783,,.312 5860177 19,7�135 ! EXCESS OF R-"MIUE OVER (UNDER) EXPENDITURES (452,012) (455.091.) ,079) OTHER FINANCING SOURCES: Operating transfers in 1,253,900 1..253,900 EXCESS OF REVFNUE A?ID OMR SOURCES .., OVrR (UNDER) EXPXNDJ_TURES 801,888 793,809 (3,079) .,t FUND BALANCE - BEGINNING OF YEAR 5,060,324 5,060$ 24 Reeldual equity transfers out (3,977,894) 0 977,884) - FUND BALANCE - END 01' YEAR 1.8842328 $ 1,881,249 ^§ (31079) PARKING AUTHORITY 1EVENUES: Fran use of money and property 120 Q00D_ $ 90,256 § (29.7414) EXPENDITURES: Principal 115,000 115,000 - Interest 52,611 52,631 TOTAL EXPENDITURES 167,631 167,631 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (47,631) (77,375) (29,744) OTHER FINANCING SOURCES (USES): Operating transfers in 170,050 170,050 - .r Operating transfero out (2,625) (2,625) TOTAL OTHER FINANCING SOURCES (USES) 167,425 �167,425 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 119,794 90,050 (29,744) FUND BALAIR E - BEGINNING OF YEAR 1,2478302 152479 302 - _J FUND MLA..NCE - EhD OF YEAR $ 1,3671096 1 337,352 (29 744) (CONTINUED) -74- TVA M SCHEDULE D-3 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND � CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1987 QVIC 7MPROVEHENT CORPORATION Variance Favorable Budget Actual (Unfavorable) REVENUES: l From use of money anti property 160,000 148 L835 (11,165) EXPENDITURES: on Principal - - - ' Interest 965,000 964.501 499 TOTAL 3"ENDITUR'3S 965,000 9641501 499 i EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (805,000) (815,666) _ (10,666) OTHER FINANCING SOURCES: Operating transfers in 713,472 713 72 - EXCESS OF REVENUE AND OTH:;R SOURCES OVER (UNDEF) EXPENDITURES (91,528) (102,194) (10,666) FUND BALANCE - BEGINNING OF YEAR - - - Residual equity transfers out 21004,L376 2,004,376 FUND BALANCE - END OF YEAR $ 1,912 L848 � 1,902,182 (10,666) TOTALS REVENUES: l Property tares 1,349,400 $ 1,630,923 $ 281,523 r From use of money and property 653,400 457L773 (195,627) TOTAL REVENUES 2,002,800 2.088.696 --_-85,896 - ZXPE!MITURES: Principal 595,000 595,000 - Interest 1,795,943 1,594,011 201_,932 TOTAL EXPENDITURES 2,390,943 2,109,011 201,4532 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (388,143) (100,315) 2878828 OTHER FINANCING SOURCES: Operating transfer in 2,137,422 2,137,422 Operating transfers in (2L625) (2,625) TOTAL OTHER FINANCING SOURCES (USES) 2,1341797 ?..13k-,L797 _ EXCESS OF REVENUE AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 1,746,654 2,034,482 187,82E FUND BALANCE - BEGINNING OF YEAR 6,864,968 6,864,968 - -. Residual equity transfers in 2,004,376 2,004,376 - Reaidual equity transfero out - (3,977,884) (3 L977,884) - I FUND BALANCE - END OF YEAR 6,638,114 6 6,925,942 287.828 I f F I 1 CAPITAT. PROJECTS FONDS -� Parking_ Structure- This fund accounts for the construction of parking garages from proceeds of the Huntington Beach Civic Improvement Corporation Certificates of Participation. Redevelopment Agency- This fund accounts for acquisition and construction A activity in the five project areas. 7 Low-Income Housing This fund accounts for acquisition and construction _.) activity for low-income housing. The California Health and Safety Codn requires that 20% of all tax increment revenue received by the -, Redevelopment Agency be sift aside in this fund for low-income housing i development. Public Facilities Corporation- This fund accounts for major capital improvements made to the Library complex by the Huntington Brach Public. -� Facilities Corporation. Parking Authority- This fund accounts for capital improvements made to certain off-street b••ach parking facilities. _J l.. l: i �� CITY OF HUNTiNGTON BEACH i VA.PITAL PRCIECU FUNDS p' COMBINING BALANCE SHEET ' June 30, 1987 I With comparative totals for June 30, 1986 r� Parking Redevelopment Structure Agency - 014 ASSETS Canh and investments $ 12,124,115 $ 2,355,993 ; Cash With fiscal agent - - Accounts receivable - 2,268 .a Interest receivable 46,865 2,581 T,and held for resale - _ 3/0093109 TOTAL ASSETS S 1k,170y980 $ 5w369,951 LIABILITIES AND FUND BALANCES j LIABILITIM Accounts payable $ - $ 6,367 Accrued payroll - 11,045 I ' Deposits 50,003 TOTAL LIABILITIES 67,412 . i FUND BALANCEES: i Reserved for land held for resale - 3,009,109 ►� Reserved for continuing projects 12,170,980 2,293,430 y •tJTAL FUND BALANCES 12,170 L980 5,302,539 TOTAL LIABILITIES AND FUND BALANCES 12,170,980 $ 5,369,951 i I M I I -76- i 33a 1 SCHEDULE E-1 r I i ` Low Public Income Facilities Parking Totals Housip Corporation Authority 1987 1986 $ 365,249 $ - $ 189,452 ff 15,034,809 $ 2,002,544 - 83,457 - $4,457 782,238 1,263 - - 3,531 6,509 879 1,592 732 52,649 10,890 - - 3,009,109 1,227,109 LIL7.j 391 $ 85,049 1_12L 134 18.183 555 �4,029,290 .l 1,633 $ - $ - $ 8,050 $ 147,155 - - - 11,045 7,983 - - - 50,000 25,000 1,683 - 69,095 180,138 - - - 3,009,109 19227,109 365,708 85,049 190,184 15,105,351 2,662,043 365,708 _ 85,049 190,184 18,114,460 3,849,152 367 391 85 Ok9 ,190,184 $ 18,183,555 �R 4,029,290 -77- rr CITY OF HUNTINGTON BEACH ' CAPITAL PROJECTS FUNDS I : COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES r For the year ended June 30, 1987 With comparative totals for June 30, 1986 Parking Redevelopment Structure � Apency REVENUES: a. Property taxes $ - $ - il From use of money and property 898,159 259a480 TOTAL REVENUES 898,159 259,480 jp EXPENDITURES: Current: 04 Community development - 2,378,795 Capital outlay 290,810 1,547.050 TOTAL EXPENDITURES 290,810 3,925,845 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 607,349 (3,666,365-) r- OTHER FINANCING SOURCES (USES): Operating transfers in - . - r' Advances from other fui:ds - 4,380,032 Other - 371,619 Proceeds of long-term debt 12,609,140 1,408,047 r, Operating transfers out 4. TOTAL OTHER FINANCING SOURCES (USES) 12,609,140 6,1594698 r- EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 13,216,489 2,493,333 FUND BALANCES - BEGINNING OF YEAR - 1,532,097 Prior period adjustment - 1,277,109 Residual equity transfers out (1,045,509) - FUND BALANCES - END OF YEAR $ 12,170,980 $ 5,302,539 -78- �3Z � ' SCHEDULE E-2 Low Public Income Facilities Parking Totals --� Housing_ Corporation Authority 1987 1986 _ f $ 2819747 $ - $ - $ 281,747 $ 101,318 13,473 8,049 121891 1,192,052 162,136 295,220 0,049 12,891 1,473,799 263,454 - - - 2,378,795 1,709,404 1,837,860 519,3'19 - - - b216,6555 21228,783 295,220 8,049 12,891 (2,742,856) (1,965,329) - - 2,625 2,625 2,625 4,380,032 4,913,841 - 371,619 - 14,017,187 j (54,050) - (54,050) (1,225,000) 1 (54,050) 2,625 18,7172413 3,691,466 j 241,170 8,049 15,516 15,974,557 1,726,137 124,538 790,740 174,668 2,622,043 2,123,015 - - - 1,277,109 - -» - (7131740) (1,759.249) - 365 708 $ 85,049 1 190,184 $ 18,114.460 3,849,1.52 -79- r I J i I I i i ENTERPRISE FUNDS Water Utility- This accounts for the City' s water service to residents and businesses. Meadowlark Golf Course- This fund accounts for the operations of a City- owned golf course which is leased to a private corporation which pays the City rent based on the operation's total revenues. Emerald Cove Housing- This fund is used to account for the operation of a senior citizen apartment complex. i I 3 � W A CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS COMBIN11IG BALANCE SHEET � I June 30, 1987 With comparative totals for June 30, 1986 i A Water Utility ASSETS CURRENT ASSETS: Cash and term investments $ 4,461,443 Accounts receivable 479,713 1 Accrued interest receivable 20,631 Due from other funds - w Unbilled receivables 9291749 TOTAL CURRENT ASSETS 5,891,536 OTHER ASSETS: Cash with fiscal agent 731,486 Advances to other funds 171070 TOTAL OTHER ASSETS 903,256 1 r PLANT, PROPERTY AND EQUIPMENT (AT COST): Land 390,763 Buildings 971,219 Machinery and equipment 46,221,871 47,583,853 Less accumulated depreciation (19,646,.63a) TOTAL PLANT, PROPERTY AND EQUIPMENT 27,937,215 TOTAL ASSETS $ 34,732,007 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ 851,501 Accrued payroll 62,843 Accrued interest 6,412 Due to other funds - Deposits 797,874 Current portion of long-term liabilities 230,620 TOTAL CURRENT LIABILITIES 1,949,250 - LONG-TERM LIABILITIES: Bonds payable 869,000 Note payable 271,785 Compensated absences payable 125,590 Certificates of Participation - Advances to other funds - Less current portion (230,620) TOTAL LONG-TER11 LIABILITIES 1,035,755 TOTAL LIABILITIES 2,,985,005 FUND EQUITY: Contributed capital 32,044,891 Retained earnings: Reserved for Debt Service - Unreserved (297,889) TOTAL FUND EQUITY 313747,002 TOTAL LIABILITIES AND FUND EQUITY 534,732.007 -so- , SCHEDULE F-1 I i Meadowlark Emerald .� Golf Cove Totals Course Housi_nit 1987 1986 ``I $ 571,880 $ 1,037,176 $ 6,070,499 $ 5,699,078 f 100 1,260 481,073 480,518 2,209 10,108 32,948 33,278 -, - - - 24,428 ' - - 929,749 803,106 574,189 1,048,544 7,514,269 71040,407 - 754,013 1,485,499 1,492,370 171,770 7542013 1,657,269 1,492,370 3,052,004 1,288,670 4,731,437 4,751,395 260,821 3,968,755 5,200,795 5,200,795 1 359,797 - 46,581,668 4,506,018 3,672,622 5,257,425 56,513,900 549968,208 (464,437) (158,750) (20,269,825) (16,957,032) -� 3,208,185 5,098,675 36,244 07S 36,0112176 L 3,782,374 $ 6x90I,232 � 45,415,613 $ 44,543,953 $ - $ 27,908 $ 879,409 $ 944,235 - 62,843 62,428 42,152 36,416 84,980 84,544 -� - - - 1119411 - 23,343 821,217 755,342 27,084 - 257,704 241,119 ! 69_,236 87,667 2w106,153 2,199,079 - - 869,000 1,053,000 1,755,949 - 2,027,734 2,1020616 - - 125,590 103,109 4,510,428 4,510,428 4,497,633 1 - 943,841 943,841 - (27,084) - (257,704) (2412119) 1,728A865 5,454,269 8,218,889 7,515,239 1,798,101 5,541,936 10,325,042 _9,714,318 1,267,324 1,342,620 34,654,835 34,230,204 - 16,676 16,676 94,231 7168949 - 419,060 505,200 1,984,273 1,359,296 35,090,571 34,829,635 $ 3,782,374 $ 6,901,232 $ 45,415,613 $ 44,543,953 -81- CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS a� i For the year ended June 30, 1987 Wit;i comparative totals for year ended June 30, 1986 on i Water 00 UtilitT+ OPERATING REVENUES: Water sales $ 8,977,514 Golf course rental8 - j Apartment rentals - Other revenues 184,104 i TOTAL OPERATING REVENUES 9.161,618 OPERATING EXPENSES: !s' Water purchases 2,5050733 Administration 3160474 Engineering 5710250 Production 2,2620538 Maintenance 9090746 Water meters 501,987 Contribution to General Fund in lieu of taxes 1,328,048 � Depreciation 1,216,974 i TOTAL OPERATING EXPENSES 9,692,750 i OPERATING INCOME (LOSS) (531,132) NON-OPERATING REVENUES (EXPENSES): Interest income 374,343 Interest expense (45,728) _ I TOTAL NON-OPERATING REVENUES (EXPENSES) _ 328,615 NET INCOME (LOSS) (202,517) I ' RETAINED EARNINGS - BEGINNING OF YEAR (95,372) Y Prior Period Adjustment - _. RETAINED EARNINGS END OF YEAR $ (2974889) -82- 33 7 .� e i SCHEDULE P-2 w i Meadowlark Emerald Golf Cove 'totals Course Housinz 1987 1986 8,977,514 $ 7,912,216 229,984 - 229,984 218,437 - 568,324 568,324 562,640 _ 49,688 233,792 273,607 229,984 618,012 10,009,614 8,966,900 2,585,733 21881,891 2210404 537,878 363,533 -� - - 571,250 159,919 ! - - 2,262,538 2,311,984 65,991 975,737 1,544*692 501,987 542,825 1,328,048 1,186,132 27,537 79,375 1,323,886 1,285,578 27,537 366,770 10,087,057 10,276A554 202,447 251,242 (77,443) (1,309.654) 39,208 120,996 534,549 681,201 (125_,278) 449 795) (620,801) (629A2,51) -! (86,070) (328,797) _ (86,252) 51,950 116,377 (77,775) (163,695) (1,257,704) 600,572 94,231 599,431 1,065,898 -� - _791,237 716,949 16,676 435,736 t_ 599,431 ' .J A CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS i COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION w For the year ended June 30, 1987 With comparative totals for year ended June 30, 1986 r I Water Utility SOURCES OF WORKING CAPITAL: 1 Operations: Net income (loss) $ (202,517) Loss on sale of plant, property and equipment 330869 Depreciation 1,216,974 Working capital provided by operations 1,048,326 Sale of plant, property and equipment - Contributions received 1,203,011 Increase in certificates of participation - Reduction in restricted assets 21,466 Increase in advance to other fund j , TOTAL SOURCES OF WORKING CAPITAL 2,2721803 USES OF WORKING CAPITAL: Increase in plant, property and equipment 1,545,692 Increase in restricted assets - Decrease in long-term notes 61,383 Decrease in long-term bonds 187,000 Decrease in compensated absences payable 22,481 r- Increase in advances from other funds 171,770 Contributions to park acquisition and development fund - TOTAL USES OF WORKING CAPITAL 1,988,326 NET INCREASE (DECREASE) IN WORKING CAPITAL 284,477 ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL: 4- Cash and term investments $ 199,250 e e Interest receivable 929 ( ) Accounts receivable 125,839 Due from other funds (24,428) Prepaid expenses -- Accounts payable 66,501 Due to other funds - - Accured payroll (415) Interest payable 154 Deferred revenue - --- Deposits (66,682) Current portion of long-term debt (14,813) NET INCREASE (DECREASE) IN WORKING CAPITAL 284,477 -84- w I 33f � a -1 I SCHEDULE Y-3 Meadowlark Emerald "Olf Cove. Totals Course Housing_ 1987 1986 $ 116,377 y (77,555) $ (163,695) $(1,257,704) - - 33,869 - 27,537 79,375 1,323,886 1,285,578 .� 143,914 1,020 1,194,060 27,874 - - - 2,770 54,050 1,257,061 1,294,978 12,795 12,795 - f - - 21,466 34,005 943,841 943_,841 143,914 _ 1,012,506 3,429_,223 1,359,627 - 1,545,692 1,636,756 14,595 14,595 66,892 27,084 - 88,467 70,269 - - 187,00,7 69,807 22,481 26,596 • 171,770 - - 832,430 832,430 - 27,084 847,025_ 21862,435 w 1,870,320 L_jL6.J30 165,481 11 566,788 $ (510_,b93_) $ 119,068 $ 53,103 $ 371,431 $ (535,304) 24 575 (330) (19,637) 100 1,260 127,199 (50,020) - (24,428) 2,220 - - - (136,010) - (1,675) 64,826 (2,676) - 111,411 111,411 (590) - (1,005) (22,229) - - 154 215,450 - - .22,208 - 807 (65,875) 25,768 (14772) - (16,585) (13,463) 116,830 $ 165,481 $ 566,788 $ (_510 693) -85- -,1 I i 7 1 � I t1 i INTZRM SERVIG: YUIMS &elf Insurance - This fund accounts for the City's self insurance activities --, (liability, health and workers' Compensation) . Equipment Replacement - This fund accounts for the purchase and operation of .� certain vehicles and equipment leased to City departments. VJ1 . I� lJ f i I I I j SCHEDULE G-1 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS ~' COMBINING BALANCE SHEET June 30, 1987 With comparative totals for June 30, 1986 Self Equipment Totals ' ASSETS Insurance Replacement 1937 1986 CURRENT ASSET: Cash and term investments $ 51599,929 $ 3,584,297 $ 9,184,226 $ 6,678,167 Accounts receivable 16,160 - 16,160 14,645 Accrued interest receivable _ 21,319 13,693 _ 35,012 32,109 TOTAL CURRENT ASSETS 5,637,408 3,597,990 91235,398 6,724,921 i PROPERTY AND EQUIPMENT (AT COST): Machinery and equipment - 19,451,335 19,451,335 1,944,035 Accumulated depreciation (8,839,654) (9,839,654) (132,023) I TOTAL PROPERTY AND EQUIPMENT 1016110681 _10,611,681 1�812,012 TOTAL ASSETS $ 5,637,408 J14,209,671 $y19.847,079 $ 8,536,933 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ - $ 85,472 $ .15,472 $ 29,048 Accrued payroll 33,471 33,471 34,463 TOTAL CURRENT LIABILITIES 33,471 85,472 118,943 63,511 LIABILITY FOR SELF-INSURANCE CL!.IMSs Workers compensation 3,519,000 - 3,519,000 2,895,000 Health 290,000 - 290,000 290,000 _ General liability 3,358,000 - 3,358,000 2,440,000 TOTAL LIABILITY FOR SELF-INSURANCE CLAIMS 7,167.000 - 7,167,000 5,6251000 TOTAL LIABILITIES 7,200,471 _ 85,472 7.285,943 5§6861511 FUND EQUITY: Contributed capital - 11,793,345 11,793,345 2,500,000 Retained earnings appropriated - 408,000 408,000 - Unreserved (11563,063) 1,922,854 357,791 348,422 TOTAL FUND EQUITY (DEFICIT) (1,563,063) 14,124,199 12,5611136 2,848,422 TOTAL LIABILITIES AND FUND EQUITY $ 5,6371408 $14,209,671 1124847LQ79 $ 8,536,933 -86- 3V i SCHEDULE C-2 + CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS ' COMBIN114G STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS June 30, 1987 With comparative totals for June 30, 1986 I -� Self Equipment Totals i Insurance Replacement 1987 1986 OPERATING REVENUES: 7 Charges for service $ 6,859,456 $ 1,566,,286 $ 8,425,742 7,202,059 OPERATING EXPENSES: Administration and general 998,272 302,865 1,301,137 1,723,510 Depreciation - 1,612,867 1,612,867 108,065 Workers com wnsation claims 1,598,000 - 1,598,000 934,635 Employee medical claims 2,392,456 - 2,392,456 1,792,779 Liability claims 1,768,456 1,768,456 1,380 L738 TOTAL OPERATING EXPENSES 6,757,184 1.915.732 8.672,916 509396727 OPERATING INCOXE (LOSS) 102,272 (349.446) (247,174) 19262/332 NON-OPERATING REVENUES: Interest income 414,,805 251,738 666_,543 723,083 NET INCOME (LOSS) 517,077 (97,708) 419,369 1,985,415 RETAINED EARNINGS (DEFICIT) BEGINNING OF YEAR (2,080,140) 2,428,562 3489422 (1,636,993) RETAINED EARNINGS (DEFICIT) - END OF YEAR $(1 j563.053)L 2,330L854 $ 767.791 $ 348.422 J "7 J "1 -87- w SCHEDULE G-3 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION June 30, 1987 With comparative totals for June 30, 1986 Self Equipment Totals Insurance Replacement 1987 1986 SOURCES OF WORKING CAPITAL: Operations: Net income (lose) $ 517,077 $ (97,706)$ 419,369 $ 1,985,415 Depreciation - 1,612,867 1,612,867 103,065 Lose on sale of plant property and equipment 57,987 57,987 - working capital provided (used) by operations 517,077 1,573,146 2,090,223 2,093,480 Increase in self-insurance claims payable 1,542,000 - 1,542,000 439,000 •- Sale of plant, property and equipment - 42,374 42,374 - Contributions received - 16,620.748 16,620,748 500,000 r„ TOTAL SOURCES OF WORKING CAPITAL 21059,077 189236.268 20z295,345 3§0.32,480 USES OF WORKING CAPITAL: Increase in plant, property and equipment - 17,840,300 17,840,300 1.698.750 �— NET INCREASE (DECREASE) III WORKING CAPITAL 2,059,077 $ 395.968 $ 2,455,045 Sy 1,333,730 ELEMENTS OF INCREASE (DECREASE) IN WORKING CAPITAL: r Cash and investments $ 2,037,689 $ 468,370 $ 2,506,059 $ 1,293,765 Interest receivable 4,246 (1,343) 2,903 6,147 �- Accounts receivable 1,515 - 1,515 (386) Accounts payable 14,635 (71,059) (56,424) 43,860 Accrued payroll 992 - 992 (9,656) NET INCREASE (DECREASE) IN WORKING CAPITAL 2,059,077 $ 395.968 $ 2.455,045 $ 1,333,730 -88- i j SCHEDULE H-1 I ..� CITY OF HUNTINGTON BEACH AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ' June 30, 1987 i i June 30, June 30, EMPLOYEE DEFERRED COMPENSATION FUND 1986 Additions Reductions 1987 ASSETS: Cash with fiscal agent $ 7,134,577 $ 2,660,823 61,387,675 $ 8,407,725 Notes receivable, net of allowance for amounts uncollectable 117,890 501,203 87,767 531,326 �. Other assets 29,375 - - 29,375 TOTAL ASSETS S 7,281,842 ^y 31162,026 $1,475,442 8,968,426 LIABILITIES, ' Note payable $ 28,500 $ - $ - $ 28,500 Employee deferred compensation 7,253.34Z 3,074,259 1,387,675 8 A939=926 TOTAL LIABILITIES S 7,281,842 $ 31074,259 $1,387,675 $ 8,968,426 -89- __ 1 A i I i 1 /CRM F _1 i -� Employee Deferred Compensation - This fund accounts for the deposit of monies authorised by employees to be withheld form salaries for payment at a later date. The City retains title to the funds until the enplovee withdraws the funds, which may not be done until employment is terminated,' t • any later date. _J _i i J I J vam t SCHEDULE I-1 CITY OF HUNTINGTON BEACH ~j SCHEDULE OF GENERAL FIXED ASSETS June 30, 1987 i GENERAL FIXED ASSETS: Land $ 37,903,023 Buildings 25,158,461 Improvements other than buildings 1,732,270 TOTAL GENERAL FIXED ASSETS 64,793,754 INVESTMENTS IN GENERAL FIXED ASSETS FROM: 1 General Fund $ 9,610,067 Special Revenue Funds 13 363,694 Capital Projects Funds 21,216,765 Donations 201603,228 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 64,7931754 t f J J i i ✓q ten. I SCHEDULE I-2 ; CITY OF HUNTINGTON BEACH SCHEDULE OF ',rtjF,RAL FIXED ASSETS B1 FUNGI. 'M ACTIVITY June 3u, 17 I I Function and Activity Land Building _ •I rovemcnta � TotuI � Fire 3,356,490 $ » $ 3:356 ,490 Police - 545,944 - 545, 944 Community services 31,155,191 8,887,107 1,732,.170 41,774,_ ,S Public works - 3,289,879 - 3,289,E Non-departmental 61747,832 9.079 1041 37A903,023 125,158j461 $ 1,732,270 64 i 93,751, i »91- 3q� - SCMULB I-3 CITY OF HUNTINGTON BZACH # SCHEDULE Or CHANGES IN FIXED ASSETS BY FUNCTION AND ACTIVITY r; June 30, 1987 I General General Fixed Asset* Fixed Assets —i July 1. 1986 Additions Deletions June 30, 1987 City Council $ 71595 $ - $ 7,595 $ j City Administrator 4,147 4;147 - 1 City Treasurer 160063 - 16,063 - City Attorney 3,063 - 3,063 w City Clerk 5,095 - 50093 - Administrative Services 10517,533 1,5170533 - Community Development 81,361 81,361 Fire 5s409j9l8 - 2,0530428 3,356,490 Police 2,7479075 - 2,201,131 545,944 Cumunity services 42,2029020 1,723,523 29150,975 41,774,568 Public works 11,4459607 - 8,155,728 3,289,879 Mon-departmental 9,498,492 6.32$.381 - 15,826,673 Total general Pieced Assets $ 72.937,969 1 8.051�904 6 16,196,119 64,793,754 I� I : 11 I ` 1 t 1 1' : I f i i This group is used to account for City long-tarot debt not reported in ..,� prnprietary fund operations or accounted for in Trust Funds. i on u `1 1 J � h t J i C L t 1 SCHEDULE J-1 CITY OF HUNTINGTON BEACH SCHEDULE OF CHANGES IN GENERAL, LONG-TERM DEBT June 30, 1987 i ' 1 11 Outstanding Outstanding June 30, June 30, 1986 Additions Retirements 1987 1970 Park Bonds $ 39165,000 $ - $ 260,000 $ 2,885,000 Public Facilities Corporation Mortgage Bonds payable 10,850,000 - 7,640,000 3,210,000 j Parking Authority R'venue Bonds 1,060,000 - 115,000 945*000 California Coastal Conservancy note payable 425,000 - - 425,000 Civic Improvement Corporation " Certificates of Participation - 20,000,000 20,0001000 Compensated absences 3,277,869 297,681 - 30573,550 i Amounts due under owner participation agreement - 1,408,047 - 1,408,047 Advances from other funds 11,825,857 4,296,920 16,122,777 { Totals $ 30,603,726 26,002,648 8,035,000 $ 48,571__ i 1 J J J ' J J M �� -93- 1 � J STATISTICAL SECTION J I I J 4 CITY OF HUNTINGTON BEACH PM GOVERNMENTAL FUND REVENUES BY SOURCE i Last Ten Fiscal Years Fiscal Property Other Licenses and Fines and Year Taxes Taxes Permits Forfeitures r- 1977-78 $12,990,877 $11,207,184 $4,977,744 $720,517 1978-79 6,741,720 12,838,538 3,841,745 1,005,451 j 1979-80 9,670,005 14,557,330 4,075,945 1,285,038 1980-81 11,761,291 16,994,341 5,496, 256 1,526,072 1981-82 13,646,046 19, 050,227 3,002,807 1, 515,914 1982-83 15,830,448 20,661,102 3,147,981 1,748,817 1983-84 16,935,465 22,878,559 5,099,573 1,923,143 �W 1 1984-85 17,638,321 25,923,113 5,963,411 2,093,975 1985-86 19,427,642 27,797,491 41427,014 1,973,670 r- 1986-87 23,087,093 28,884,962 4,918,549 2,095,714 Source: Administrat:.ve Services Department, City of Huntington Beach Note: Includes General, Special Revenue Capital Projects and Debt Service Funds -94- r 3 �. EXHIBIT A i I Use of Money From Other Charges sor Other Total and Property Agencies Current Service Revenue $1,957,111 $10,495,618 $938,182 $168,997 $43,456,230 2,006,834 12,320,144 950,674 182,735 39,887,841 2,585,767 9,294,178 1,158,294 314,760 42,961,317 4,250,129 11,402,686 1,488,964 374,249 53,293,988 5,375,601 91109,290 1,316,278 529,704 53,545,867 4,550,760 7,954,059 2,917,449 1,179,902 57,990,518 1 6,177,364 9,937,325 2,009,901 1,052,519 66,013,849 j 5,895,407 12,888,344 2,161,424 364,156 72,928,151 `1 5,718,196 14,143,061 21349,967 735,484 76,572,525 7,634,071 14,422,660 2,799,219 456,006 84,298,274 I -95- i CITY OF HUNTINGTON BEACH GOVERNMENTAL FUND EXPENDITURES BY FUNCTION i Last Ten Fiscal Years Fiscal City city City city Year Council Administrator Treasurer Attorney " 1977-78 $59,403 $3,845,700 $866,716 $296,813 1978-79 37,463 3,759,877 1,352,898 373,891 1979-80 48,409 1,941,152 061,840 349,993 1980-81 80,993 402,983 1,027,518 435,102 } 1981-82 77,403 399 402 157 703 872 2 , , , , 51 1982-83 97,804 498,373 264,221 629,000 r 1993-84 111, 048 480,390 141,158 729,693 ; 1984-85 128,635 730,966 267,882 806,146 r- L 1985-06 90,029 629,890 286,648 644,685 r- ! 1986-87 62,121 709,952 281,848 563,804 L r~ Source: Administrative Services Department, ' City of Huntington Beach r-- Note: Includes General, Special Revenue ` Capital Projects and Debt Service Funds ' r r -96- e 1 EXHIBIT B -. 1 City Administrative Community Clerk services Development Fire ! $154,415 $493,612 $1,512,258 $4,711,161 107,347 541,326 1,411,873 5,658,406 '1 163,533 626,152 1,617,357 6,059,038 J 143,289 1,681,625 1,645,222 6,661,735 193,563 2,059,688 1,750,178 7,315,498 165,076 2,140,377 1,711,545 7,758,422 _! 163,473 2,362,261 2,318,519 8,568,812 194,834 2,558,796 2,725,926 9,493,834 163,608 2,600,737 3,825,545 10,251,710 152,622 2,680,065 4,715,013 11,186,607 ! ' I (CONTINUED) •97- I CITY OF HUNTINGTON BEACH GOVERNMENTAL FUND EXPENDITURES BY FUNCTION (Continued) Last Ten Fiscal Years r i Fiscal Community Public Year Police Services Works 1977-78 $8,931,202 $4,183,316 $4,753,345 1978-79 9,445,272 3,788,705 4,502,434 1979-80 10,879,198 2,654,006 5,442,196 r. 1980-81 11,721,106 4,339,820 8,779,723 1981-82 13,366,919 4,404,602 9,706,874 r � 1982-83 14,103,479 5,028,173 10,989,138 2983-84 15,601,080 5,070,115 12,528,418 1984-85 17,122,642 5,286,948 13,651,510 1985•-86 18,744,618 5,668,499 l5o045,519 �- 1986-87 20,519,431 6,089,924 14,567,248 r- r Source: Administrative Services Department, City of Huntington Beach `- Note: Includes General, Special Revenue Capital Projects and Debt Service Funds -98- 0 F. 1 EXHIBIT B I Non Capital Debt Departmental outlay Service Total $2,497,049 $8,867,086 $504,375 $41,676,451 4,687,607 5,233,229 504,746 41,405,074 5,644,931 9,627,769 503,986 46,419,560 -� 5,177,413 8,724,986 502,588 51,524,103 -' 4,009,907 81859,891 470,896 $3,644,775 1 4,058,277 9,639,227 469,V06 57,552,118 i . 740,992 8,620,833 1,830,149 62,266,941 -� 167,215 7,873,719 1,896,104 67,605,157 6,795,597 11,791,250 1,846,950 78,385,285 7,708,794 10,730,436 2,189,011 82,176,876 -99- • w I CITY OF HUNTINGTON BEACH r PROPERTY TAX LEVIES AND COLLECTIONS • i Last Ten Piscal Years i SECURED TAXES pineal Total Total - Delinquency- ._ Year Levy Collections Amount Percent 1977-78 $12,563,144 $12,336,834 $186,310 1.48 1978-79 5,635,879 5,525,120 110,759 1.97 r- ! 1979-80 8,842,899 8,602,751 240,148 2.72 1980-81 10,244,680 9,872,496 352,184 3.44 1981-82 10,300,308 9,893,563 406,745 3.95 1982-83 11,405,210 11,116,699 288,511 2.53 1983-84 11,402,791 11,664,690 430,471 3.78 .- 1984-85 12,418,398 11,633,797 424,700 3.42 1985-86 13,607,853 12,780,632 452,047 3.32 1986-87 15,088,967 14,447,882 572,469 3.79 Source- County of Orange , Nate- Delinquency does not necessarily equal the levy amount minus the collections since there are always collections of amounts levied in prior years. ~ -100- EXHIBIT C i i I UNSECURED TAXES li Total Total - Delinquency- Levy Collections Amount Percent $742,053 $711,519 $30,534 4.11 -i 561,420 537,307 24,113 4.30 i 861,976 839,468 22,508 2.61 ^' 827,160 789,078 38,090 4.60 808,024 737,425 46,596 5.77 _ 960,008 908,666 51,342 5.35 982,118 942,305 25,543 2.60 I 1,032,103 955,100 33,094 3.21 1,130,254 1,059,541 39,631 3.51 1,186,690 1,100,619 44,496 3.75 a J L� u -101- ir } r r CITY OF HUNTINGTON BEACH r ASSESSED AND ACTUAL VALUE OF AI.L TAXABLE PROPERTY { Last Ten Fiscal Years it Fiscal Common Public Total Year Property Utilities Secured r a . 1977-78 $755,037,495 $55,476,730 $810,514,225 1978-79 718,286,880 59,829,480 778,116,360 1979-80 872,397,080 60,454,280 932,851,360 1980-81 932,145,962 79,646,917 1,011,792,879 1981-82 4*608,702,866 322,527,240 4, 931, 230,106 ja 1982-83 5,171,181,975 330,030,190 5,501,212,165 1983-84 5,559,791,250 362,185,700 5,921,976,950 1984-85 5,940,642,022 426,592,970 6,367,234,992 1985-86 6,519,922,590 450,742,080 6,970,664,670 r 1986-87 7,019,854,076 475,467,220 7,495,321,296 r a, Source: Orange County Auditor-Controller Note: Assessed value approximates market value for years beginning in 1981-82. Prior to this Assessed value was approximately 25% of r market value. Assessed valuation follows the guidelines of article 13-A of the California `- Constitution. r I" y rY -102- EXHIBIT D ~y Total Estimated Full Percent Assessed Market Increase -, Unsecured Valuation Valuation (Decrease) $43,807,520 $854,321,745 $3,417,286,980 i 53,667,320 331,783,680 3,327,134,720 (2.64) -, 61,546,730 994, 398,090 3,977,592,360 19.55 62,512,167 1,074,305,045 4,297,220,181 8.04 � 288,452,654 5,219,682,760 5,219,682,760 21.47 374,691,841 5,875,904,006 5,875,904,006 12.57 --' 370,949,364 6,292,926,314 6,292,926,314 7.10 466,570,592 6,833,805,584 6,833,805,584 8.60 441,125,430 7,411,790,108 7,411,790,108 8.46 504,939,681. 8,000,260,977 8,000,260,977 7.94 i J -103- EXHIBIT E 1 PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS i LARGEST TAX RATE AREA IN CITY I Last Ten Fiscal Years 7 i Metro. Basic Orange school Water 1 Year Levy City County Districts Diet. Others Total 1977-78 - $0.38750 $0,33250 $1.56920 $0.03250 $0.13013 $2.45183 1978-79 1.00000 n.04930 0.00080 0.14987 0.02750 0.00428 1.23175 1979-80 1.00000 0.04930 0.00070 6.12572 0.02560 0.00393 1.20525 -� 1960-81 1.00000 0.04635 0.00057 0.12430 0.02225 0.00325 1 .19672 ' 1981-82 1.00000 0.04635 0.00080 0.12010 0.01980 0.00270 1.19775 1982-83 1.00000 0.05756 0.00043 0.11656 0.01660 0.00237 1 .19352 1983-84 1.00000 0.05682 0.00039 0.12096 0.02370 0.0021.0 1.20397 1984-85 1.00000 0.05630 0.00032 0.09962 0 .01560 0.00177 1.17361 1985-86 1.00000 0.05565 0.00030 0.09329 0.01640 0.00161 1.16725 1986-87 1.00000 0.05529 0.00027 0.10677 0.01480 0.00142 1.17855 Source- County of Orange Note- Rates are per $100 of Assesaed Valuation �J 1 I �1 -104- ' I CITY OF HUNTINGTON BEACP ^ i GENERAL OBLIGATION BONDED DEBT RATIOS Last Ten Fiscal Years ' r Assessed Percent of Bonded General Market Debt to Debt Fiscal Bonded Valuation Assessed Per Year Debt (in 1,000s) Valuation Population Capita r 1977-78 $5,020,000 $3,417,287 0.15 161,301 $31 .12 1978-79 4,810,000 3,327,135 0.14 167,409 28.73 1979-80 4,590,000 3,977,592 0.12 172,200 26.66 1980-81 4,360,000 4,297,220 0.10 173,393 25.15 1981-82 4,150,000 5,219,683 0.08 175,714 23.62 1982-83 3,930,000 5,875,904 0.07 178,706 21.99 1983-84 3,695,000 6,292,926 0,06 179,990 20.53 1984-85 3,425,000 6,833,806 0.05 181,000 18.92 1985-66 3,165,000 7,411,790 0.04 184,838 17.12 1986-87 2,895,000 3 ,000,261 0.04 186,757 15.50 i�. r Source- Administrativ:-. Services Department, ._ City of Hunti ;.gton Beach -105- EXHIBIT F 1 ^, Deut Service -- Debt Service- to Total ' General Fund General Fund .� Principal Interest Total Expenditures Expenditures 4 f $200,000 $310,925 $510;'935 $29,077,330 1.8 ii 210,000 $292,437 502,437 32,466,386 1.5 i 220,000 $282,375 502,375 36,901,644 1.4 230,000 $272,737 502,737 40,494,393 1.2 210,000 $260,525 470,525 44,093,600 1.1 220,000 $248,450 468,450 48,747,039 1.0 235,000 $235,800 470,800 53,177,133 0.9 270,000 $221,700 491,700 59,693,62E 0.8 260,000 $205,500 :165,500 64,492,270 0.7 280,000 $190,702 470,702 67,125,724 0.7 i .�J -J -7 1 .J -106- r_ EXHIBIT G r CITY OF HUNTINGTON BEACH i COMPUTATION OF LEGAL DEBT MARGIN r June 30, 1987 r. i hasessed Valuation $8,000,260,977 f Debt Lil..it: 15% of Assessed Value $1,200,039,146 Amount of Debt Applicable � I to Limit $2,885,100 } Less Net Assets in Debt Service Fund $ 99,305 Total amount of Dnbt ^` Applicable to Limit 2 78 pp $ 5,659 Legal Debt Margin $1,197,254,487 r- r- Source: Administrative Services Department, City of Huntington Beach r r• V , 4 r- U 1� -107" A EXHIBIT H ' CITY 0(? HU?iMIVGTC!V SF�ICEI C)[WLITATIGN OF DIRECT AND OVMEAPPING BONDED DEBT June 30, 1987 1986-87 Assessed Valuation: $7,861,210,245 (after deducting 5139,050,732 in ' redevelopment tax allocation increment) DIRWr AND OVERLAPPING BONDED DEBT Percent Debt at Applicable June 30, 1987 Oranges County 8.050 $ 172,642 Orange County Building Authorities 8.050 6,423,316 Orange County Flood Control District 8.053 793,623 metrol.olitan Water District 1.660 8,924,641 Municipal Water District of Orange County, 10.430 7,374,010 )f Water Facilities Corporation Orange County Sanitation Districts #1,2 and 5.256 6,149,520 3 "'.ertificates of Participation Orange County Sanitation District #3 11.254 128,183 J Orange County Sanitation District #11 99.912 288,745 Coast Cam+unity College District Authority 30.418 5,338,359 Los Alamitos Unified School District 1.903 16,365 i cuntington Beach Union High School District 70.937 1,886,924 Huntington Beach School District 96.627 1,546,032 Ocean View School District (Various Issues) 92.722-92.981 2,631,366 { Fountain Valley school District 31.458 34,603 City of Huntington Beach 100,000 2,910,000 City of Huntington Beach Building Authorities 100.000 24e2051000 2GTAL Gi4W Dnwr AND ONE RCAPPING BONDED DEBT $ 68,823,329 Less MM)OC Water Facilities Corporation (100% self-supporting) (7,374,010) Less Orange County Sanitation Dist. #3 (100% self-smarting) (128,183) TOTAL NM AND aVEREA?PING BONDED DEBT $ 614321s136 (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bands and non-banded capital lease obligations. Includes certificates of participation to be sold. Ratios to Assessed Valuaticn: Share of Unauthorized and Unsold Bonds: ri Direct Debt ($27,115,000) 0.34% Metropolitan Water District- $4,399,000 Total Gross Debt 0.88% Fountain Valley school District-$1,556,542 Total Net Debt 0.78% Ocean View School District- $1,729,447 .J state School Building Aid Repayable as of 6/30/87- $35,651,300 I I �1 Source: California Municipal Statistics, Inc. 1 -108- I CITY OF HUNTINGTON BEACH WINTER REVENUE BOND :OVERAGE i Last Ten Fiscal Years r Expensed ., (Excluding Net Revenue Fiscal Total Interest and Available for ' Year Revenues Depreciation) Debt Service 1977-78 $4,951,770 $3,496,631 $1,455,139 1978-79 5,539,891 3,653,791 1,886,100 1979-80 6,082,925 3,643, 233 2,439,692 r 1980-81 5,814,133 4,780,478 1,033,655 I 1981-82 6,557,815 5,286,338 1 ,271,477 r" 1982-83 6,521,826 6, 255,114 266,712 r 1983-84 7,035,318 6,657,552 377,766 i 1984-85 8, 049,882 7,687,105 362,777 I 1985-66 8,650,971 8,760,034 (109,063) 1986--87 9, 161,618 8,475,776 685,842 !^ i Source, Administrative Services Department, City of Huntington Beach Note- The 1963 Water Revenue Bond trust indenture requires that the net revenue available for r debt service be at least 1.25 times the annual debt service requirement. `r r -109- EXHIBIT I 7 Debt Service Requirementn - Princioal Interest Total Coverage $120,000 95,400 $215,400 6.8 120,000 91,500 211,500 8.9 130,000 87,405 217,405 11.2 -� 130,000 83,115 213,115 4.9 - 140,000 78,660 218,660 5.8 150,000 73,800 223,800 1.2 I 150,000 68,700 218,700 1.7 I - 160,000 42,718 202,718 ?.8 � •-• 58,000 39,631 97,631 N/A 184,000 34,455 216,455 3.1 -llp- EXHIBIT J r CITY OF HUNTINGTON BEACH DEMOGRAPHIC STATISTIC'S I City Population Percent Square Orange County as a Percent of Year Population Increase Miles Population County Popoulation n l ! 1910 815 3.57 34,436 2.4 1920 1,667 107.0 3.57 61,375 2.7 1930 3,690 118.7 3.57 118,647 3.1 I 1940 3,738 1.3 3.57 130,760 2.9 1950 51158 38.0 4.72 216,224 2.4 (� 1960 11,492 122.8 23.47 703,995 1.6 1970 116,400 912.9 26.73 1,420,386 8.2 ' t. 1910 172,200 47.9 27.20 1,931,570 8.9 1981 173,393 0.7 27.20 1,972,724 8.8 4 1982 175,714 1.3 27.20 1,993,831 8.8 1983 176,706 1.7 27.20 2,036,390 8.8 1984 179,990 0.7 27.20 2,066,498 8.7 1985 181,000 0.6 27.20 2,074,326 8.7 ' 1986 184,838 2.1 27.20 2,130,428 8.7 1987 186,757 1.0 27.20 2,193,614 8.5 Sources Community Development Department, City of Huntington Beach -111- "1 EXHIBIT K 1 CITY OF HUNTINGTON BEACH CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSIT i Last Tcn Fiscal Years Estimated Bank Number Valuation and Savings of of New and Loan Fiscal Building Percent Construction Percent Deposits Percent Year Permits Change (0001e) Change in (000's) Change 1977-78 6,939 - 150,287 -- 714,203 - ~ 1978-79 6,187 (10.8) 91,462 (39.1) 856,340 19.9 1979-80 4,457 (28.0) 91,289 ( .2) 955,539 11.6 � ..: 1980-81 4,012 (10.0) 100,794 19.2 1,045,345 9.4 �- 1981-82 3,230 (19.5) 58,298 (46.4) 1,134,3:4 8.5 1982-83 2,539 (21.4) 52,458 (10.0) 1,388,634 22.4 1983-84 2,776 9.3 110,747 111.1 1,801,778 29.8 1984-85 3,163 13.9 142,336 28.5 2,033,763 12.9 1985-86 3,173 0.3 133,579 (6.2) 2,310,482 13.6 - 1986-87 4,098 29.2 92,230 (31.0) Note- Bank and Savings and Loan Deposits for 1986/87 were not available in time for this report. Source- Community Development Department, City of Huntington Beach and The Findley Reports on California Financial Institutions. -112- i S CITY OF HUNTINGTON BEACH INSURANCE IN FORCE r June 30, 1987 Cal-Surance•- Broker Helicopter Liability- Hughes 500E Helicopter Liability-Bells 47 Helicopter Liability, Excess Heliport and Hanger -- Watercraft Hull and Liability Watercraft Hull and Liability, Excess Excess Workers Compensation Robert E. French - Broker Medical Stop Lous Employees 'travel Accident Policy Robert-F. Driver- Broker Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake Fire, ExtL..3ed Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake �. Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake Boiler and Machinery Public Official and Employee Faithful Performance Bond TOTAL Sources Administrative Services Department City of Huntington Beach -113- • i I �} EXHIBIT L i l Ar"l Insurance GanparN Pblicy4 Expires Pr"-aim America's Insurance Company 0125502 4/1/88 $56,930 Transamerica Insurance Company 01203180 4/1/88 24,820 Lloyds of London 14318 4/1/88 7,938 Transamerica Insurance Company 1201320 4/1/88 51000 Albany Insurance Company 8H10601 4/1/88 5,700 St. Paul Insurance Company 388FA6867 4/10/88 7,425 _ Dmployer's Reinsurance Company C35059R 7/1/88 87,350 American Insurance Company 19086 4/30/88 20,000 - Provident Life arri Accident GTA1116 7/1/08 3,398 Insurance Campmny National Union Fire Ina Co. ZMB4281834 615/87 112,460 Home Insurance Caquny TR314873 6/5/87 90,192 Conmarwealth Insurance Co. OW1624 6/5/87 23,198 Associated Inter. Ins Co. FP301685 6/5/87 40,185 A1liana Underwriter Ins Co. FC5023054 6/5/87 20,043 Coxswnwealth Insurance Co. C*F1625 6/5/87 20,620 Progressive Casualty Ins. Co. CF4678350 6/5/87 20,043 Kemper Grp, Amer Mfg Ins Co. 3XNO-17455-01 4/1/88 10,350 INA, Cigna C WOI-10-98-6 711168 6 f 973 56 L625 -11G- � n f- EXHIBIT M CITY OF HUNTINGTON BEACH PRINCIPAL PRIVATE EMPLOYERS (Alphabetical Order) June 30, 1987 r- American Eagle Wheel Company Cambro Manufacturing Company John Thomas Trucking Company r Ger►eral Telephone i Huntington Center Huntington Humana Hospital -- MaDonnel Douglas Mercury Savings Pacifica Hospital Rainbow Disposal r Weiser Lock w r Source: Adminstrative Services Department, City of Huntington ' Beach -115- :� j EXHIBIT N i 1 CITY of 11UNTINGM BEACH MISCEUANDOt1S STATISTXCIR June 30, 1987 Year of incorporation 1909 Form of Government Charter City- Council, City Administrator Area 27.2 Square Miles Population 186,757 Miles of Streets 370 Number of Street Lights 14,250 Fire Protection: Number of Stations 7 Number of Firefighters 132 Police Protection: Number of Stations 1 Number of Sworn Police officers 209 Municipal Water Department Number of Customers 46,028 Average Daily Conmxgtion 29.0 Million Gallons Miles of Water Maine 473 Sewers: Sanitary Sewers 270 Miles Stoum Sewers 31 Miles Recreation and Culture Number of Parka 57 Miles of Beach 3.4 Annual Beach Visitors 6,000,000 Number of Libraries 4 Library of Volumes 11800,000 Full-Tire Employees 1,038 Source: Administrative Services Department, City of Huntington Beach -116- 1 I COMPREHENSIVE ANNUAL FINANCIAL REPORT (, CITY OF HUNTINGTON BEACH, CALIFORNIA I y FISCAL YEAR ENDED JUNE 3n, 2988 i I i PREPARED BY ADMINISTRATIVE SERVICES DEPARTMENT CITY OF HUNTINGTON REACH i i I i i Cover - "Creative Financing" , by Joanne Eonkowski w CITY OF HUNTINGTON BEACH, CALIFORNIA i CO.MPRENENSIVE ANNUAL FINANCIAL REPORT Fiscal year ended June 30, 1988 ar Table of Contents t INTRODUCTORY SECTION �t Page ! Number 1 Table of Contents i - Letter of Transmittal iv - xi Elected and Administrative Officials xi.v Organizational Chart XV Financial Reporting Awards xvi - xvii FINANCIAL SECTION i Schedule Accountants' Report l General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups A-1 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types A-2 G - 5 Combined Statement of Revenues, Expenditures and C; Changes in Fund Balances - Budget and Actual - Ganeral, Special Revenue and Debt Service Fund Types A-3 6 - 8 Combined Statement of Revenues, Expenses and F: Changes in Retained Earnings - All Proprietary Fund Types A-4 9 Cnmbined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 10 Notes to Financial Statements 11 - 60 Financial Statements of Individual Funds and Account Groups: General Fund: Comparative Balance Sheet B-1 61 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-2 62 "�,' �i:l oa *�'rv��•fi ., s..�j:�r '� � �':;� -�, � 1 l�,r.. ,� � . .u _ y, ¢nser �=sue'=---- —�' .a �G 1, ':i •� 'r'; •f'• .�t.�� r...`:..�,.�:'•.r:'!t1w��•��.Qi�'���_r_a�.r"Malmo,�,i"hff,a'al!jeS�jiNil:.+.v//.fan`IC.:.C`�Ri's�.i�l�! Pn re Schedule Nu:.i,rr Special Revenue Funds% Combining Balance Sheet C-1 63 - 64 Combining Statement of Revenues, Expendituren and Changes in Fund Balances C-2 65 - 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-3 67 - 71 -- Debt Service Funds: Combining Balance Sheet D-1 72 - 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 74 - 75 Combining Statement of Pnvenues, Expenditures and Changes in Fund Balancer - Budget and Actual D-3 76 - 79 Capital Projects Funds: Combining Balance Sheet E-1 80 - 81 ._ Combining Statement of Revenues, Expenditures and Changes in Fund Balances E-2 82 - 83 Enterprise Funds: Combining Balance Sheet F-1 84 - 85 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 86 - 87 -' Combining Statement of Changes in Financial Position F-3 88 - 89 Internal Service Funds: Combining Balance Sheet G-1 90 Combining Statement of Revenues, Expenses and Changes :n Retained Earnings G-2 91 Combining Statement of Changes in Financial Position C-3 92 Agency Fund: Statement of Changes in Assets and Liabilities 11-1 93 General Fixed Assets Account Group: Schedule of General Fixed Assets I-1 94 Schedule of General Fixed Assets by Function and Activity I-2 95 Schedule of Changes in Fixed Assets by Function and Activity I-3 96 General Long-Term Debt Account Groups Schedule of Changes in General Long-Term Debt J-1 97 -ii- i i STATISTICAL SECTION I �1 Page Exhibit Number wn Governmental fund Types - Revenues by Source - Last Ten Fi,acal Years A 98 - 99 Governmental Fund Types - Expenditures by Function - ` Last Ten Fifacal Years B 100 - 101 I Property Tax Levies and Collections - Last Ten Finical Years C 102 - 103 Assessed and Actual value of All Taxable Property D 104 - 105 ' . : Property Tax mates - All Overlapping Governments - Last Ten Finical Years E 106 -- General Bonded Debt Ratios - Last Ten Fiscal Years F 107 - 108 i Computation of Legal Debt Margin G 109 Computation of Direct and Overlapping Bonded Debt H 110 „f Water Revenue Bond Coverage - Last Ten Fiscal Years I ill Demographic Statistics J 112 r Construction Activity and Bank and Savings and Loan Deposits - Last Ten Fiscal Years K 113 Insurance in Force L 114 - 115 Miscellaneous Statistics N 116 I iC I _y i I s 1 � CITY OF HUNTINGTON BEACH 1 2000 MAIN STREET CALIFORNIA 92648 November 22. 1988 The Honorable Mayor and City Councilmembers City of Huntington Beach, California Mayor and Councilmembers: We are pleased to submit to you the Comprehensive Annual Financial Report for the City of Huntington Beach for the fiscal year ending June 30. 1988. We believe that the data is an accurate summary of the financial position and results of operations of our City to you. We have included all necessary disclosures to enhance your understanding of the financial condition of the City. The financial statements are prepared in accordance with the standards of the ~` Government Accounting Standards Board and its predecessor, the National Council on Governmental Accounting and includes the report of our independent auditors, Diehl, Evans and Company. The report is presented in three sections: introductory, financial and statistical . The introductory section includes this transmittal, the City's organizational chart and a list of principal officials. The financial section includes the General purpose financial statements and the combining and individual fund and account group financial - statements and schedules as well as the auditors report on the financial statements. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The Single Audit Act of 1984 requires that the City's grant programs which utilize Federal funds. either directly or passed through from state or county agencies be subjected to special audit requirements. These include tests of compliance with Federal laws and regulations and an organization-wide examination of financial operations. The results of this expanded audit of grant activity are included under separate cover. Copies of tha- report are available from this office. Huntington Beach is a full-service City including public safety, parks ,and recreation, beach services, library services. planning and zoning, public works and _elated administration. The City also provides water services to residents and buLinecses. This report includes the financial activity of certain separate legal entities wnuse activities are significantly controlled by and/or related to the City. These entitie% -iv- i are. the Redevelopment Agency of the City of Huntington (leach (Redevelopment Agency), the Huntington Beach Public Facilities Coreoration (Public Facilities Corporation), the Huntington Beach Public iinancing Authority (Public Financing Authority), the ,.. Huntington Beach Civic Improvement Corporation (Civic Improvement Corporation) and the Parking Allthoritv_of the City of Huntington Reach (Parking Authority). Component unit financial reports have been prepared for the Public Facilities Corporation. the Redevelopment Agency and the Public Financing Authority. These reports show the financial activities of these entities on a "stand-alone" basis. Copies of thesw reports are available from this office. -� I ECONOMIC CONDITION AND OUTLOOK Huntington Beach is located approximately 35 miles southeast of Los Angeles in Orange County. The economy of Orange County has had strong, sustained growth for the past five years. The median income for a family for a family of four in Orange County was $44.400 at year-end as opposed to $38,395 statewide. The real--estate market in Huntington Beach was particularly strong during the year. The median resale of existing homes in Orange County increased from $168,210 at the beginning of the fiscal year to $219,185 at year--end. This will cause increased prope.•ey tax revenues to the City in future years. Huntington Beach has made a commitment to affordable housing over the years by issuing mortgage revenue bonds which were used to develop or finance affordable housing. r t MAJOR INITIATIVES For the Year The City's capital improvement program over this and the next several years will be critical to the future quality of life in Huntington Beach. In January. 1988, the second major storm in five years destroyed the end of the municipal pier. In July, 1988, after careful study of the pier's structural integrity, it was permanently closed. The City has made a firm commitment to rebuild the pier. Currently several methods of financing the pier are being studied. Possibilities include federal and state assistance, Redevelopment Agency financing, private donations and City funds. In May. 1988 the Huntington Beach Public Financing Authority was formed which provided r over $14 million dollars of immediate financing for capital improvements and other projects in fnur of the five Redevelopment project areas. An additional $9.7 million dollars of financing is being held in an escrow account and will be released when the assessed valuation in the Redevelopment Agency grows to a sufficient level to finance the bond repavment. During the year. the City also received $1.35 million of excess funds previously held in reserve for the bonded indebtedness of the Public Facilities Corporation. This money will be used along with other public and private financing to construct improvements at the Central Library. _v- - 3� ! .. 1 � I For the Future Huntington Beach's future is one of economic promise and vitality. The City's coastal Iocation provides unique challenges in developing an ideal mix of tourism, light industry. residential and commercial development. This will require the efforts not only of local government but also of local businesses and citizens groups. The Redevelopment Agency will play a vital role in the City's economic future. Much •.. of the focus of the Agency's efforts will be on the downtown area or Main/Pier project ,i area. The economic poteRtial of this area for the local business community is great. I , Part of the downtown redevelopment effort will be to construct parking structures .i which will help accommodate the expected increased traffic in the downtown area due to ' the opening of Pierside Village and other developments. Funding for these structures will come from the proceeds of the the Civic Improvement Corporation certificates of participation issued in 1986. i The City has already gained positive results from Redevelopment efforts in the Talbert/Beach. Oakview and Huntington Center project areas. One of the biggest factors affecting quality-of-life in Huntington Beach is traffic. The City has worked in conjunction with other local governments. CALTRANS and the private sector to determine the best way to reduce congestion and speed the flow of traffic on local arteries. I Article 13(b) of the California constitution (The Gann Limit) will have a profound effect on many local governments in California. The Gann Limit allows the City's expenditures from "proceeds of taxes" to grow only at the rate of inflation and ... population growth. Huntington Beach is growing close to its Gann Limit and it is possible that within two years, it may be exceeded. In that event, the City will have to decide whether to rebate monies to taxpayers or to hold an election which would allow the City to exceed its Gann Limit. FINANCIAL INFORMATION The City's financial statements are prepared on the modified accrual basis for all governmental fund types except for the financial statements of the proprietary fund types which are prepared on the accrual basis. The City's system of internal control has been carefully designed to protect City assets while ensuring that the cost of a i particular control does not exceed its expected benefits. „R budgetinn Controls The City Council adopts the annual budget and may amend or revise the budget at any time. Budgetary control is maintained at the departmental level. A department head, with the Finance Director's approval can transfer funds within like object categories of the same department. The City Administrator can transfer funds from one object -vi- 3V-e i r ` category to another without Increasing the total budget of a department. The City ~ Administrator must approve any changes to capital outlay requests. Any increases to a total departmental budget must be approved by the City Council. The City utilizes an encumbrance system as a management control technique. E.i:umbrances represent oiders for goods or services unfilled cr services not yet performed. At year end these are reported as reservations of fund balance in governmental fund types. These outstanding encumbrances are then re-appropriated in the new fiscal year. The Accounting Division of the Administrative Services Department is responsible for ,I maintaining the City's financial information and for preparing this report. Financial Surmaa r General governmental functions include the operations of the General, Special Revenue, Debt Service and Capital Projects Funds. Below is an analysis (in thousands) of ' general novernmental revenues With an explanation of significant fluctuations: ; increase. Percent Percent (Decrease) of Increase Amount of Total from 1986/87 (Decrease) Property Taxes $24.275 27.1 $1,188 5.1 J Other Taxes 30,207 33.7 1,322 4.5 Licenses and Permits 4,348 4.8 (571) 01.6) Fines and Forfeitures 2,338 2.6 242 11.5 From Use of Money and Property 8,365 9.3 731 9.6 From Other Agencies 15,492 17.3 1,070 7.4 Charges for Current Service 3,208 3.6 409 14.6 Other 1,410 1.6 954 109.9 Total $891643 100.0 $5,345 6.3 I r- Licenses and permits decreased due to interest rate fluctuations which caused many builders -%:o forestall development in the City and also as a reduction of oil related revenuer. Fite-, forfeitures and penalties increased due to increase in parking and citation rates. A large increase in motor vehicle in-lieu revenues caused the major portic.n of the increase in revenue from other agencies. Charges for current service iner.:aced due to increased user fees for specific City services. Other revenue increased due to the sale of surplus City property during the year. There were no comparable sales in the prior year. Below is an analysis (in thousands) of general governmental expenditures with an explanation of significant fluctuations: -vii- J w -- i ^ Increase Percent Percent (Decrease) of Increase 1 Amount of Total from 1986181 (Decrease) City Council $ 130 .1 1 .4 City Administrator 1,106 1.2 147 15.3 "~ City Treasurer 290 .3 7 2.3 City Attorney 973 1.1 60 6.5 City Clerk 245 .3 (7) (2.8) -- Administrative Services 3,287 3.7 199 6.4 Community Development 4,187 4.7 939 28.9 Fire 11,840 13.2 653 5.8 Police 22.370 24.9 1,342 9.0 Community Services 6,954 7.7 864 14.2 ' Public Works 16,205 18.0 1,342 9.0 Non-Departmental 7,153 8.0 (573) (7.4) Capital outlay 9,786 10.9 (944) (8.8) Debt Service 5,243 5.8 3.054 _ 139.5 -� Total $89,769 100.0 $72592 9.2 City Administrator expenditures increased due to the addition of the Deputy City Administrator/Zoning Administration position. City Clerk expenditures decreased due j to personnel vacancies. Community Development expenditures increased due to reorganization and increased redevelopment activity. Police expenditures increased due to higher than expected salary increases and overtime. Community Services expenditures increased due to the acquisition of additional beach area from the State of California. Non-Departmental expenditures decreased due to a smaller Tax and Revenue Anticipation Note issue. This was due to Treasury Department regulations. Debt Service expenditures increased due to the Civic Improvement Corporation's ce.tificates of participation which had no acti•ity in 1986/87 but had activity in 1937/88 and due to repayment of debt from the Redevelopment Agency to the City. Capital Outlay expenditures decreased due to reduced authorized capital projects. Fund Equities- The City's total fund equities for governmental fur.ds increased 6.6% as shown in the table below (expressed in thousands): Total Total Percent Equity Equity Increase Governmental Funds 1987/88 1986/87 (Decrease) General $22,349 $18,775 19.0 _.. Special Revenue 14,848 14,178 4.7 Debt Service 32,875 6,926 274.6 Capital Projects 35,099 18,114 93.8 �..7 Total $105,171 $57,993 81.5 L II -viii- i Plgpriptary Funds Internal Service $13, 101 $12,561 4.7 r.. Enterprise 37.781 35,091 7.6 Total 550,878 S471 652 6.6 The total fund equity for the governmental fund types is classified as follows (expressed in thousands): Total Total Percent Equity Equity Increase 1987/88 1986187 (Decrease) Governmental Funds Reserved $88,415 $40,746 116.9 Unreserved/Designated 6,469 3,219 101.0 Unreserved/Undesignated 10,_287 13,998 (26.5) -- Total $105,171 S57_,993 81.4 Proprietary Funds Retained Earnings $1,516 $1,204 7.3 Contributed Capital 49,362 546_,41.8 M 4 Total $50,878 $47,652 6.6 The total increase in governmental fund and proprietary fund equity shows the financial health of the City. The increase in General Fund equity is largely due to increases in fund equity reserved for long-term debt from the Redevelopment Agency. The large increase in total equity for Capital Projects and Debt Service Funds is largely due to the issuance of $26,775,000 of bonds by the Public Financing Authority described above, The large increase in reserved fund equity for governmental funds is primarily due to the proceeds of the Public Financing Authority's bonds which is all reserved for future Redevelopment projects. The decrease in unreserved/undesignated fund equity is primarily due to specific Council action which designated fund equity for improvements at the Central Library and for Redevelopment projects. The increase in proprietary fund contributed capital is due to developer construction of water system improvements and their subsequent transfer to the City. Proprietary Operations The City operates three enterprise and two internal service funds. Enterprise funds include the Water Utility Fund, the Meadowlark Golf Course Fund and the Emerald Cove Housing Fund and are supported through user charges to the public. The internal service funds include the Self-Insurance Fund and the Equipment Replacement Fund and are supported by charges to user departments within the City. -ix- ... I � 1 1 asr 1 ..t Shown below is a table comparing the performance of the City's enterprise_ funds to the prior year (expressed in thousands). f Meadowlark Emerald Water Utility Golf Course Cove housing 1 j1987/88 1986/87 1987/88 1986/27 1987/88 1986/87 i --� Operating $10,147 $9,162. $305 $2%') $606 $618 Revenues i Operating (513) (531) 278 202 269 251 Income (Loss) ( Net Income (Loss) 15 (203) 213 116 (35) (78) Income Available 1,301 1,060 363 269 494 452 for Debt Service , Debt Service, Bonds 39 279 123 150 450 450 and Notes 1 Debt Service 33.3 3.8 3.0 1.8 1.1 1.0 Coverage The net income for the Water Utility Fund is due to a rate increase enacted in .July, 1987. The decrease in the net loss for Emerald Cove was due to a onetime expenditure in fiscal year 1986/87 that was not repeated in VJ87/88. The rent structure at Emerald Cove is not sufficient to recover the operation's cost. Council has commissioned a committee to study ways of eliminating the net loss at Emerald Cove through expenditure reductions rather than rent increases. The increo.-,e in net income i for Meadowlark Golf Course is due to increased public use of the golf course. ' c tlo _ Shown below i_ a table comparing . . �erformartce of the City s internal service funds - to the prior year (expressed ir. thousands) : ( - Equipment self--Insurance Replacement 1937/88 1986/87 1987/88 1986/87 Operating Revenues $ 6,896 $6,859 $1,581 $1 ,566 i ' Operating Income 130 103 (828) (349) Net Income 690 518 (571) (97) -x- J h I i I r I � The increase in the net loss for the Equipment Replacement Fund is due to increased expenditures and depreciation for the City's replacement equipment. Pension Obligations The City is a participant in the California Public Employee's Retirement System (PERS). PERS sets rates that the City uses to make contributions on behalf of all -- permanent employees and temporary employees who have worked in excess of 1000 hours during the year. At June 30, 1987, the most recent information available, the City's total future pension obligation for all current and retired employees was $115,355,000 r. and assets available for these obl'pations was $105,612,000 leaving, an unfunded pension benefit obligation of $9,743,000. This will be funded by future contributions to PERS. i Agency Binds Total assets and liabilities of the City's agency funds increased by $1,686,584, or 24.3% to $11,154,217. This is due to increased employee participation in the City's section 457 deferred compensation plan which is the only agency fund maintained. Debt Administration Below is a summary of the City's outstanding long-term debt at June 30, 1988 (expressed in thousands): Amount Description Outstanding General Obligation Bonds 1970 Park Bonds $2,590 r Revenue Bonds 1963 Water Bonds 869 Parking Authority Bonds 825 Public Financing Authority Bonds 26,775 Certificates of ."4 rticipation Redevelopment Agency- Emerald Cove Housing 4,523 Huntington Beach Civic Improvenent 19,830 Corporation Leasehold Mortgage Bonds Public Facilities Corporation- 2nd Issue 3,000 Notes Payable -xi- f !6. i i ff I � i Meadowlark Golf Course 1,729 San .loagnin Reservoir 220 State Coastal Conservancy 417 "1 County of Orange 409 Other ..l Compensated Absences 3,822 J Redevelopment Agency Debt 36,918 Self-Insurance Claims 7.336 Amounts Due. Under Owner Participation 1,408 Agreement 1 Total $110,671 Less Amounts due within one year in Proprietary Funds (333) Total Long-Term liabilities $110,338 Moody's Investor's Service rates certain obligations as to their safety as an investment. Below are the ratings of certain City obligations% 1970 Park Bonds Aa Civic Improvement Corporation Certificates Al of Participation Public Facilities Corporation Leasehold Mortgage Al Bonds Public Financing Authority Revenue Bonds R.3a Parking Authority Revenue Bonds Al The City's legal debt limitation for general obligation bonds is 15% of the total of assessed valuation in the City. At June 30, 1988 the City's general obligation debt was $1 .197,579,000 less than i.ts legal debt limitation. Further information on the City's long-term indebtedness is included in notes 10 and 11 to the general purpose financial statements. Cash Manafement The City Treasurer is responsible for investing available cash in allowable -- instruments. These include inured or collateralized certificates of deposit, certain government securities, five year or less commercial paper rated A or better and the State Treasurer's Local Agency Investment Fund. The cash management system of the City is designed to monitor and forecast revenues and expenditures to ensure the investment of monies to the fullest extent possible. The criteria for selecting investments are, in order of priority, (1) safety, (2) liquidity, (3) yield. Further information on the City's investments are detailed in note 3 to the general purpose financial statements. U The average total of non-restricted cash and investments was $65.071 ,278 which yielded interest of S5.031.950 for a return of 7.7%. The California Government Code requires the City Treasurer to prepare an annual ; statement of investment policy and monthly report containing specific information regarding the City's investment policy. The City Treasurer has complied with this law. Further information on the City's investment is detailed in note 3 of the "' 1 financial statements. i Risk ManMement e for liability, workers compensation and employee health The City is self-insured Y. P claims. In October. 11)88. subsequent to year-end, the City entered into a joint- powers arrangement Witt: five other local citit:s which will provide coverage for ; liability claims in excess of one.-million dollars. This will reduce the City's exposure from a large, liability claim. At year-end, an estimate was made of the total cash that will be eventually paid out by the City due to claims made through .tune 30. 1988. The total of these claims exceeded the cash set aside by the City to pay them by $873,000. This deficit will be funded by increased charges to City departments in future years. ; OTHER INFORMATION Single Audit In accordance with the Single Audit Act of 1984, the City's grant programs which utilize Federal funds, either directly or passed through from state or county agencies. have been subjected to audit requirements of the Office of Management and Budget. This included tests of compliance with Federal laws and regulations and an - organization-wide examination of financial operations. The results of this expanded audit of grant activity are included under separate cover. Copies of the report are available from this office. Financial Reporting; Certificates The City has prepared an easily readable and efficiently organized Comprehensive Annual Financial Report. The City's report for the fiscal year ending June 30, 1986 has been given appropriate recognition from the Government Finance Officer's Association (GFOA) and the California Society of Municipal Finance officers (CSMFO) . --. The GFOA awarded the City a Certificate of Achievement for Excellence in Financial Reporting which is the highest form of recognition for financial reporting that the GFOA awards. The certificate is valid for one year only and is awarded only to cities whose reports conform substantially with high standards of pubic financial reporting. The CSMFO awarded the City a Certificate or Award for Outstanding Financial Reporting. This is also the highest form of award given by the CSMFO. We believe that this year's report continues to conform to the requirements of bath _- award programs and we are submitting it to both organizations to determine its eligibility for another award. -xiii- J a ,1 �1 •� 4''•r d .r � f The City received similar recognition for its Annual Budget for 1987/88 from both the GFOA and CSMFb. We are one of very few cities to receive recognition for Unth our Annual Budget and Comprehensive Annual Financial Report. Acknowledgments We wish to thank the City Council and the ,various City departments for conducting the 1 fiscal affairs of Huntington Beach in a responsible and progressive manner. We would also like, to thank the iaembers of the Accounting Division, especially Robert Sedlak, -- Principal Accountant for their work in the preparation of this. report. ,44' DAN T. VILLELLA DirecP, of Financ.--," J is IRDBBRT J. F Z epsty City A ministrator/ Administrative Services Dep ent 4 v V i v- i CITY OF HUNTINGTON REACH PRINCIPAL CITY OFFICIALS CITY COUNCIL John Erskine Mayor Thomas Mays Mayor Pro-Tern Wes Bannister Councilperson Ruth Finley Councilperson Peter Green Councilperson Jack Kelly Councilperson Grace Winchell Councilperson OTHER ELECTED OFFICIALS Donald L. Watson City Treasurer Gail Hutton City Attorney w C01111.1e Brockway City Clerk ADMINISTRATIVE OFFICIALS •aul Cook City Administrator {tobert J. Franz Deputy City Aelnin;;trator Douglas LaBelle Deputy City Administrator James Palin Deputy City Administrator Lou Sandoval Public Works Director Melvin Bowman Community Services Director Raymond Picard Fire Chief G.L. Payne Police Chief Dan T. Villella Director of Finance I I V PEOPLE City Of CITY COUNCIL Huntington Beach ORGANIZATIONAL CHART CITY ffljo ADMINISTRATORCITY CITY TREASURER ATTORNEY CITY CLERK 141\T{\Lt(fY i(x(H I X POLICE FIRE PUBLIC WORKS DEVELOPMENT ADTJtINISTRATlVE COMMUNITY DEVELOPMENT SERVICES SERVICES UNIFORM FIRE ! ENGINEERING PLANNING PERSONNEL LIBRARY i DIVISION PREVENTION { ADMIN. REAL RECREATION b DIVISION OPERATIONS WATER BUILDING PROPERTY HUMAN RESOURCES __� INVFSTIGATION EMFROENCY 4- LANDSCAPE I HOUSING/ FINANCE 1 HBEACH DIVISION SERVICES REDEVELOP. SERVICES INFORMATION CULTURAL DIVISION MAINTENANCE SYSTEMS ARTS d INSURANCE& R BENEFITS • The Government Finance Officers Association of the United States and Canada presents this AWARD OF FINANCIAL REPORTING ACHIEVEMENT to: ROBERT J. FRANZ DEPUTY CITY ADMINISTRATOR X 1 CITY OF HUNTINGTON BEACH. CALIFORNIA i The Award of Financial Reporting Achiemment is presented by the Government Finance Officers Assodation to those indivrduais who hatx been instmmental in their gotvrrimental unit achi:-ving a Certificate of Achievement for Excelfence in Financial Reporting.A Certifi- cate o f A chiemment is presented to those gomrmnen tal snits whose annual financial reports are judged to substantic::s conform to program standards. Errcutive Direchore� Date MARCH 26, 1987 Z CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS DEDICATED TO THE PROFESSIONAL ADVANCEMENT OF MUNICIPAL FINANCE ADMINISTRATION I 6!Crtil, 01A FOR U 9 0 %TANDING FINANCIAL '-%P 'r. PRESENTED TO THE C onBeach untie ' w This certificate is issued in recognition of meeting proressional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system frem which the reports were prepares for the fiscal year 1986/1967 2r::hats,Fhatesstonot Standards CommltUe� � dot i - L _ 1 i 1 A i wn 1 FINANCIAL SECTION �J r q`� i 1 DIEHL,EVANS pOVAIE t CALLAIIAN,CPA &COM P`` Y (_P ONLY V.LUDA,CTA f fd"S jAy'�1/ RODNEY Y.►kpA}JC[l.CTA , CERnnrn"LIC'ACCOUNTANTS RA111111 WEINMAUS.C}A MICIIACL R.LUDIN,CTA , A►ARTMISNI/INCEUNMG►t(MWFAK►(M1W►Ftw� Rp67 KiR N•INf,C►A r it 1910NORM BUSH MEET MOMASM MR10"SKI CPA StXtA ANA&CAUFOILNIA 92706-2819 PHONE M4)542.4453 FAX(:l4)542a218 September 9, 1988 I I ACCOUNTANTS' REPORT City Council City of Huntington Beach ^-� Huntington Beach, California I We have examined the general purpose financial statements of the City of Huntington Beach, as of and for the year ended June 30, 1988, as listed in the table of contents. Our examination was Slade in accordance wi;:h generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Tn our opinion, the general purpose financial statements referred to above present fairly the financial position of the Ctcy of Huntington Beach at June _I 30, 1986, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consiotent with chat of the preceding year. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken is a whole. The combining, individual fund and individual, account )soup financial statements are presentee for purposes of _ additional analysis and are not a required part of the general purpose financial statements of the City of Huntington Beach. Such information has been subjected _ to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material —� respects in relatson to the general purpose financial statements taken as a whole. The other data included in the Statistical Sectien is presented primarily for supplemental analysis purposes. The scope of our examination did not include the statistical information and we do not express an opinion or any other fora of assurance concerning it. CC J �� Gl/Yy�•4/ ��G� L� ` �� Di1fEl p7Et(75 Ai I M ROOSEVELT ST. 120%TST WOOAWARD AVL•. f CARLS@AD,CA 42!'C?-LtS7 ESCONMDO,CA 9X259M (619)7P-2.141 (619)711-1141 a i rr CITY OF HUNTINGiON BEACH COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS ,,.. June 30, 1988 (expressed in thousands) Governmental fund Types _ special Debt Capital ASSETS General Revenue Service Projects Cash and investments (Notes lb and 3) $ 7.1,950 $ 13,543 $ 2,644 $ 30,856 Cash with fiscal agent (Note 3) 191 - 15,153 139 Taxes receivable (Note lm) 1,958 - 113 172 Accounts and notes receivable 956 67 96 - i Unbilled receivables - - - - Inventory (Note 1g) 208 Due from other fundu - - - Advances to other funds (Note 8) 16,710 4.766 15,237 - Deposi73 and other assets 28 - - - -- Due from other agencies 442 1,37 - - Land held for resale (Note lf) - - - 4,854 Property, plant and equipment, - - - - net (Notes if and 12) r Amount available for debt service funds Amount to be provided for payment - of long-tern debt - - TOTAL ASSETS $ 32,443 $ 18,813 $ 33,243 $ 36,021 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 1,241 $ 340 $ - $ 87 Accrued expenses 3,527 19 - 17 Deposits 1,200 14 - - Due to other funds - - - Advances from other funds (Voter 8 and 10) - 140 - - -� Deferred compensation (Note 4) - - - - Claims payable (Note 7) - - - - Deferred ;avenue (Note 5) 4,126 3,452 368 - -- Note payable, current - - - 818 Long-term debt (Notes 10 and 11) - - - - Compensated absences payable (Notes lk, 10 and 11) - - - - TOTAL LIABILITIES 16,094 3,965 368 922 FUND EQUITY: Cc ,ttributed capital (Note. 9) - - - - In-estment In general fixed assets - - - - Retained earnings - - - - Fund Balances: Reserved (Note 13) 15,984 4,457 32,875 35,099 Unreserved: Designated (Noce 13) 4,919 1,550 - - Undesignated _ 1,446 8,841 - - „- Total Fund Equity 22,349 14,848 32,875 35,099 TOTAL LIABILITIES AhD FUND EQUITY $ 321+43 $ 18,813 $ 33,243 $ 36,021 q� See accountants' report and niter to financial statements. -2- • SCHEDULE A-1 i t I i Account Groups Propriety Fund Types Fiduciary General General 'h W Internal Fund Type Fixed Long-Term Total (Memorandum Only) I Ente Erise Service Agency Assets- Debt - 1988 1987 $ 6,522 $ 9,917 $ $ $ $ 75,432 $ 57,539 1,448 _ 9,266 26,197 15,022 2,243 1,925 12 52 1,888 - - 3,571 1,638 5 1, 18 - - - - 1,218 930 - 208 146 - 1,000 1,289 - - - - 38,002 17,067 .. - 28 - _ - 879 1,060 - _ - - 4,854 3,009 ' 37,596 11,139 - 65,675 - 114,410 111,650 - 32,875 32,875 6,926 - - 62,701 62,701 41,645 $ 48,585 $ 21,108 $ 11,154 $ 65,675 $ 95,576 $ 362,618 $ 259,,557 $ 814 $ 219 $ - $ - $ - $ 2,701 $ 3,419 434 43 - - - 4,040 2,423 2,630 1,666 - 1,000 -- 944 - - - 36,918 38,002 17,067 - - 11,126 - - 11,126 8,940 - 7,336 - - - 7,336 7,167 - _ - - 7,946 7,457 - - - - 818 _ 71081 409 28 - 54,836 62,TA 36,309 119 - - - 3,822 31941 3,701 - l_0,808 8,007 11,154 - 95,576 140,894 89,149 37,148 12,214 - - - 49,362 46,448 - - - 65,675 - 65,675 64,794 629 887 - - - 1,516 1,203 _ - _ - - 88,415 1-1,746 - - - 6,469 3,219 _ W_ _ - - - 10,287 139998 37,777 13,101 - 65,G75 - 221,724 170,408 $ 48,585 $ 21,108 $ 11.154 $ 65.675 $ 95,576 $ 362,618 $ 259,557 -3- yM � III CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the year ended June 30, 1988 (et:pressed in thousands) General Fund j REVENUES: r Property taxes (Note lm) $ 21,827 ! Other taxes 30,021 Licenses and permits 3,276 Fines, forfeitures and penalties 2,335 From use of money and property 4,708 , From other agencies 7,920 i Charges for current services 3,208 -- Other 1,410 TOTAL REVENUES 74,705 EXPENDITURES: Current: City Council 78 City Administrator 633 City Treasurer 288 City Attorney 576 City Clerk 120 -- Administrative Services 2,856 Community Developr-ent: 2,015 Fire 11,840 Police 22,357 Community Services r 6,809 { Public Works 15,835 Non-departmental 7,040 Capital outlay 977 Debt Service (Note 10): Principal Interest - TOTAL EXPENDITURES 71,232 EXCESF OF REVENUES OVER (UNDER) EXPENDITURES 3.473 OTHER FINANCING SOURCES (USES): Operattt:g transfers in (Note 8) 1,280 Advances from General Fund (Note 10) - - Froceeda of long-term debt (Note 10) - Operating transfers out (Note 8) (2,137) Loss on investments (Note 3) (362) Gain on sale of land - Other _ - TOTAL OTHER FINANCING SOURCES (USES) .� (12219) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 2,254 FUND BALANCE - BEGINNING OF THE YEAR 18,745 Prior period adjustments - FUND BALANCE - BEGINNING OF YEAR, AS RESTATED 18,745 Residual equity transfers in (Note 8) 1,350 Residual equity transfers out (None 8) - FUND BALANCE - END OF YEAR _ 22,349 See accountants' report and notes to financial statements. _ yl -4. - I ,l SCHEDULE A-2 Special Debt Capital Totals Revenue Service Projects (Memorandum Only) Funds Funds _ Funds 1988 1987 it $ $ 2,057 $ 391 $ 24,275 $ 23,087 186 30,207 28,885 1,072 - - 4,348 4,919 , I 3 - - 2,338 2,096 . , 1,403 674 1,580 8,365 7,634 i 7,572 - - 15,492 14,423 ! j - - - 3,208 2,795 - - 1,410 455 _102236 2,731 1,971 89,643 84,298 I 52 130 129 175 - 298 1,106 959 - - " 290 283 - - 597 973 913 - - 117 245 252 7 - - 431 3,287 3,088 . 1 1,178 - 994 4,187 3,248 - - - 11,840 11,187 13 - - 22,370 20,519 145 - 6,954 6,090 - - 370 16,205 14,863 _. - 98 15 7,153 7,726 6,618 - 2,191 91786 10,730 975 - 975 595 - 2,545 1,723 4,268 1,594 8,129 3,618 _ 6,790 89,769 82,176 •M 21107 (887) _ (4,819) (126) 2,122 - 1,874 - 3,154 3,448 - 21,108 21,108 4,380 I - 26,31.1 - 26,313 14,017 -' (1,438) - (32) (3,607) (4,939) - (362) (470) 727 727 ! - _ 371 (1,438) 28,i87 21,803 47,333 16,807 .. j 669 27,300 16,984 47,207 18,929 ,• � 14 079 6,925 18,115 57,964 36,659 -,� - - - - 2,376 14,179 6,925 18,115 57,364 39,035 1,350 5,737 - (1,350) - (1.350) (5,737) (.' $ 14,848 32 875 $ 35�099 105,171 $ 57,964 CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CIIANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 30, 1988 ' (expressed in thousands) General Fund Variance Favorable Budget Actual (Unfavorable) REVENUES: ! Property taxes (Note lm) $ 21,154 $ 21,827 $ 673 f Other saxes 30,680 30,021 (659) Licenses and permits 3,512 3,276 (236) Fines, forfeitures and penalties 2,644 2,335 (309) From use of money and property 4,378 4,708 330 From other agencies 8,093 7,920 (173) Charges for current services 2,852 3,208 356 r. Other 535 1,410 875 TOTAL REVENUES 73,846 74,705 857 � EXPENDITUILES: -^ Currents City Council 97 78 19 City Administrator 582 633 (51) City Treasurer 279 288 (9) City Attorney 358 376 (18) City Clerk 126 128 (2) _ Administrative Services 2,913 2,856 57 Community Development 1,917 2,015 (98) Fire 11,745 11,840 (95) Police 22,010 22,357 (347) Community Services 7,442 6,809 633 Public Works 17,089 15,835 1,254 Non-departmental 9,282 7,040 2,242 Capital outlay 1,845 977 868 Debt Service (Note 10)s " Principal _ _ Interest _ _ r TOTAL EXPENDITURES 75,685 71,232 42 453 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES _ (11837) 3,473 51310 OTHER FINANCING SOURCES (USES): Operating transfers in 1,400 1,280 (120) Proceeds from long-term debt - _ - Operating transfers Tut (2,184) (2,137) 47 -- Loss in investments (Note 3) - (362) (3G2) TOTAL OTHER FINANCING SOURCES (USES) (784) (1,219) (435) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (2,621) 2,254 4,875 FUND BALANCES - BEGINNING OF THE YEAR 18,745 ).8,745 - Residual equity transfers in 1,350 1,350 - Residual equity transfers out - - FUND BALANCES - END OF YEAR 171474 $ 22,349 4,875 See accountants' report and notes to financial statements. -6- �- i j SCHEDULE A-3 Special Revenue Funds Debt Service Funds Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ $ - $ - $ 1,504 $ 2,057 $ 553 200 186 (14) - - - 1,543 1,072 (471) `A 3 3 1,009 1,403 394 655 674 (181) 1 8,071 7,572 (499) 01 10,826 10,236 (590) 27359 2,731 372 168 175 (7) - - 4,479 1,178 3,.301 ~ 14 13 1 i 227 145 82 - '-' - - - 98 98 - _ 19,530 6,618 12,920 - - 975 975 - - - 2,811 2,545 266 24,426 8,129 16,297 _. _ 3,884 31618 266 (13,600) 2,107 15,707 (1,525) (887) 638 i - 1,874 1,874 - ,� ` - 26,313 26,313 - (1,558) (1,438) 120 - - _ (1,558) (l 438) 120 28,187 28,187 - ' f (15,158) 669 15,827 26,662 27,300 638 K.i 14,179 14,179 - 6,925 6,925 - ` - (1,350) (1,350) - n $ (979) $ 14,848 $ 15,827 $ 22,237 $ 32,875 S 638 i (CONTINUED) j + `1 -7- I SCHEDULE A-3 CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 4 CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 30, 1988 (expressed in thousands) Totals (Memorandum Only) Variance - Favorable Budget Actual (Unfavorable) REVENUES: Property taxes (Note lm) $ 22,658 $ 23,884 $ 1,226 Other taxes 30,880 30,207 (673) Licenses and permits 5,055 4,348 (707) �- Fines, forfeitures and penalties 2,647 2,338 (309) From use of money and property 6,242 6,785 543 From other agencies 16,164 15,492 (672) _ Charges for current services 2,852 3,208 356 Other 535 1,410 875 ' TOTAL REVENUES 87,033 87,672 639 )EXPENDITURES: Current: City Council 97 78 19 City Administrator 750 808 (58) City Treasurer 279 288 (9) City Attorney 358 376 (18) City Clerk 126 128 (2) Administrative Services 2,913 2,856 57 Community Development 6,396 3,193 3,203 Fire 11,745 11,840 (95) Police 22,024 22,370 (346) Community Services 7,669 6,954 715 Public Works 17,089 15,835 1,254 Non-departmental 9,380 7,138 2,242 Capital outlay 21,383 7,595 13,788 Debt Service (Note 10): - Principal 975 975 - Interest 21811 2,545 266 TOTAL EXPENDITURES 103,995 82,979 21,016 EXCESS OF REVENUES OVER EXPENDITURES (16,962) 4,693 21,655 OTHER FINANCING SOURCES (USES): Operating transfers in 3,274 3,154 (120) Proceeds from long-term debt 26,313 26,313• - Operating transfers out (3,742) (3,575) 167 Loss on investments (Note 3) - (362) (362) TOTAL OTHER FINANCING SOURCES (USES) 25,845 25,530 (315) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 8,883 30,223 21,340 FUND BALANCES - BEGINNING OF THE YEAR 34,849 39,849 - Residual equity transfers in 1,350 1,350 - Cesidual equity transfers out (11350) (1,350) - FUND BALANCES - END OF YEAR $ 48,732 $ 70,072 $ 21L340 -' See accountants' report and noes to financial statements. 403 -8- - s r CITY OF HUNTINGTON BEACH SCIiEDULF. A-4 COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES t IN RETAINED EARNINGS - ALI, PROPRIETARY FUND TYPES .•. For the year ended June 30, 1980 (expressed in thousands) r' Totals Internal (Memorandum Only) Enterprise Service 1988 1987 OPERATING REVENUES: Water sales $ 9,698 $ - $ 9,698 $ 8,978 Golf course rentals 305 - 305 - Apartment rentals 606 - 606 798 Charges for services - 8,477 8,477 8,426 Other 449 - 449 234 ' TOTAL OPERATING ! REVENUES 111058 86477 19,535 18,436 'OPERATING EXPENSES: Water purchaves 21988 - 2,988 2,585 ' -- Administration 581 2,320 2,901 1,839 Engineering 827 - 827 571 Production 2,123 - 2,123 2,263 Maintenance 1,167 - 1,167 976 Water Meters 595 - 595 502 Contribution to General Fund in lieu of taxes 1,390 - 1,390 1,328 Workera compensation claims - 2,245 2,245 1,598 Employee medical claims - 1,834 1,834 2,392 Liability claims - 914 914 1,769 Depreciation (Vote ld) 1,353_ 1,862 3,215 2,937 TOTAL OPERATING EXPENSES 11,024 _ 9,175 201199 18,760 OPERATING INCOME (LOSS) 34 (698) (664) (324) NON-OPERATING REVENUES (EXPENSES): Interest income 771 817 1,588 1,201 Y Interest expense (612) - (612) (621) TOTAL NON-OPERATING REVENUES (EXPENSES) 159 817 976 580 NET INCOME (LOSS) 193 119 312 256 RETAINED EARNINGS - BEGINNING OF YEAR 436 768 _ 1,204 948 RETAINED EARNINGS - END OF YEAR 629 $ 887 $ 1,516 - 1,204 i See accountants' report and Motes to financial statements. qb� I SCHEDULE A-5 w 1 CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF CHANGES IN FINA11CIAL POSITION ALL PROPRIETARY FUND TYPES For the year ended June 30, 1988 (expressed in thousands) Totals Internal (Memorandum Only) Enterprise Service 1988 1987 SOURCES OF WORKING CAPITAL: Operations: Net loss $ 193 $ 119 $ 312 $ 255 Loss ou sale of plant, property and equipment 12 80 92 92 Depreciation 1,353 1,862 3,215 21937 Working capital provided by 1,558 2,061 3,619 3,284 operations Increase in self-insurance claims 163 163 1,542 payable Sale of plant, property and equipment 5 97 102 42 Contributions received 2,496 420 2,915 17,878 Increase in Certificates 13 - 13 13 of Participation 71 7 Reduction in restricted assets _70 336 336 - Increase in note payable _ - 944 V Increase in advances to other funds TOTAL SOURCES OF WORKING CAPITAL 4,142 3,077 7,219 23,710 USES OF WORKING CAPITAL: Increase in plant, property 2,720 2,299 5,015 19,386 and equipment Increase in restricted assets 34 34 Decrease in long-term notes 79 - 79 2 22 -- Increase in compensated absences 6 - 6 Increase in advances from other funds 1,118 - 1,118 172 Contributions to Park Acquisition 832 and Development Fund ._._.. TOTAL USES OF WORKING CAPITAL 3,957 2,299 6,256 20,688 NET INCREASE IN WORKING CAPITAL 185 L 778 963 $ 3,022 ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL: Cash and investments 452 733 1,185 2,878 _. Interest receivable 10 H 21 - Account s receivable (9) (16) (25) 131 Unbilled receivable 289 - 289 - Due from other funds - - (24) Prepaid expenses - Accounts payable 66 93 l59 Due to other funds - - 112 A (33) (�3) (76) - Accrued payroll Interest payable 6 6 Deposits (593) - (593) (66) Current portion of long-term debt (3) - (3) (17) NET INCREASE (DECREASE) IN WORKING CAPITAL 185 $ _ 778 $ 963 3$ ,022 See accountants' report and notes to financial statements. -10- 0" I oil 1 ! 00 NOTES TO FINANCIAL STATEMENTS i i Number Description ! 1 . Significant Accounting Policies 2 . Description of the Reporting Entity 3 . Cash and Investments I 4 . Deferred Compensation / 5 . Deferred Revenues 6 . Retirement plan J _ 7, Self Insurance 8 . Interfund Transactions - 9. Proprietary Funds 10 . General Long-Term Debt 11 . Proprietary Fund Long-Term Debt 12 . Changes in Fixed Assets 13 . Reserves and Designations of Fund Equity 14 . Commitments and Contingencies .�i 15 . Other Required Disclosures 16 . Subsequent Events i _i � 1 1 L(b1P f CITY OF HUNTINGTON BEACH ,., NOTES TO FINANCIAL STATEMENTS ' JUNE 30, 1988 1 1. sumi y OF SIGNIFICANT ACCOUNTING POLICIES: i i ` a. Description of Fund Types and Account Groups: The City of Huntington Beach (City) accounts for its financial position and operations in accordance with generally accepted accounting principles for governmental units prescribed by the Government Accounting Standards Board (GASB). The City uses various funds and account groups to record its finanrial activity. A fund or ..� account group is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The City maintains the following fund types and account groups: ...` Governmental Fund Types: The General Fund is used to account for all financial activity that is not required to be accounted for in another fund. + Special Revenue Funds are used to account for the receipt and ~' expenditure of monies legally restricted to a specific use. Debt Service Funds are used to account for the receipt and disbursement of monies used for the payment of general and redevelopment long-term principal and interest. Capital Projects Funds are used to account for monies used for the acquisition and construction of major capital facilities. Proprietary Fund Types: �- Enterprise Funds are used to account for City operations that are financed in a manner similar to private businesses. Enterprise funds are used when the City wishes to recover the cost of a particular service furnished to the public on a cost (expenses including depreciation) reimbursement basis or when the City wishes to make �. periodic determinations of net income. �J r See accountants ' reprrt -11- � I r 1 � CITY OF HUNTINGTON BEACH I NOTES TO F i i -VI"TAL STATRNENTS r" (continued ) JUNE 30, 1988 1. SUNl1ARY OF SIGNIFICANT ACCOUNTING POLICIES: 1 a. Description of Fund Types and Account Groups: ' Internal Service Funds are used to account for goods and services provided by one department of the City to another on a cost- reimbursement basis. Fiduciary Fund Type: Agerry Funds are used to account for assets held by the City as an - agent for individuals or private organizations. Account Groups: "- The General Fixed Assets Account Group is used to record and control capital assets owned by the City other than those owned by �- proprietary fund types. The General Long Term Debt Account Group is used to account for the unmatured long-term liabilities that will be financed from governmental funds. b. Basis of Accounting: Governmental. and agency fund types use a modified accrual basis of - accounting. The assets of the Employee Deferred Compensation Fund, an agency fund, are reported at market value rather than at cost in accordance with GASB Statement 2. Revenues are recognized when they are susceptible to accrual. This means that they must be measurable and available to finance current period expenditures. Revenues - susceptible to accrual are received within 60 days after year-end and include property taxes. sales tax, federal and state grants and subventions, interest and certain charges for current service. Revenues which are not susceptible to accrual include certain licenses, permits, fines and forfeiture and other miscellaneous revenue. Expenditures, other than principal and interest on long- term debt are recorded when incurred. Proprietary fund types are accounted for on the accrual basis. Accounting for these fund types, normally follows accounting for private businesses. Revenues are' II' recognized when earned, regardless of the date of receipt. - Expenditures are recognized when incurred. Unbilled water revenue is accrued when earned. See accountants ' report -12- 4d� -- i 0, I CITY OF HUNTINGTON BEACH .� NOTES TO FINANCIAL STATEMENTS ` ( continued) JUNE 30, 1988 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICII'S (CONTINUED): c. Measurement Focus: 1 The City's governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets. Statements of revenue, expenditures and changes in fund balance for governmental funds generally present increases (revenues .,� and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. The fund equity amount represents total net ~? assets. Proprietary funds are accounted for on a capital maintenance t measurement focus. This means that all assets and liabilities, whether current or noncurrent, are shown on the balance sheets. Their reported fund equity represents total net assets. Proprietary _j fund operating statements present increases (revenues) and decreases (expenses' in total net assets. -' d. Budgets and Budgetary Accounting: The City Council annually adopts a budget by June 30th of the prior fiscal year for all governmental fund types. The budgeted -� expenditures become the appropriations to the various departments. Estimates are also made for revenue which, along with the appropriations, are used to compute the budgetary fund balance. This appropriated budget. as defined by GASB Code Section 2400.109, covers substantially all City 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 one object purpose (personal services, operating expenditures or capital outlay expenditures) to another within the same department without changing the total budget of a department. A department head may transfer funds from like object categories of the same department. Any changes to a total departmental budget must be approved by the City Council. Expenditures may not exceed appropriations at the departmental level. IJ All unused appropriations lapse at year-end. k4 z See accountants ' report --13- 1� CITY OF HUNTINGTON [TEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30 , 1988 1. sUtiMY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): - i d. Budgets and Budgetary Accounting: Budgets for governmental fund types are adopted on a basis substantially consistent with generally accepted accounting principles as legally required. There are no significant non- w 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 February 28th of each year, each Department submits data to the City Administrator so that a budget may be prepared. Thj# budget is prepared by fund. function and activity and includes information on past years, current year estimates and requested appropriations for the next fiscal year. Before May 1st, the proposed budget is presented to the City Council. The City Council holds public hearings and may amend the budget by a majority vote. Lny changes to the budget must be within the revenues and reserves estimated as available. Budgetary data is presented for the General, special revenue and debt service Funds. Budgetary information is not presented for the ; capital projects funds since these are budgeted on a long--term project by project basis. The City utilizes an encumbrance system as an aid in controlling expenditures. Encumbrances represent ar+ounts committed for goods or services for which a purchase order has been issued and the goods have not been received or the services have not been rendered. At year-end. all outstanding encumbrances are reported as reservations of fund balance in governmental fund types. These outstanding encumbrances are then reprogrammed into the new fiscal year. The budgetary information presented for estimated revenue and ._ appropriations represent the original budget adjusted for changes made by action of the City Council, City Administrator or Department. head. All changes to the original, adopted appropriations (expenditures plus other financing uses) are summarized below (in thousands). Funds with no changes are not shown: ``6 See accountants ' report -14- �t 1 rt CITY OF HUNTINGTON BEACH ` NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 i 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): d. Budgets and Budgetary Accounting: Fund: Original Revised i — General 74,310 $77,869 -� Special Revenue Funds: i Gas Taz 6,657 14,103 ! � Sewer 320 918 IIII Planned Local Drainage 400 1,365 Public Communications 200 216 Grants 2,308 5,279 Park Acquisition 2,963 3,553 J and Development Debt Service Funds Public Financing Authority - 26,313 e. Investments: i s r Investments are stated at the lower of cos or market value except that market value declines below cost are not recorded unless such I ' declines are considered permanent (see note 3). f.. Property and Equipment: Acquisitions of property and equipment are generally recorded as expenditures in governmental fund types at the time of purchase and are capitalized at cost in the General Fixed Assets Account Group. Land held by the Redevelopment Agency for resale is capitalized at the lower- of cost or market in the Redevelopment Agency Capital Projects Fund. Expenditures for infrastructure (roads, curbs, sidewalks, sewers, etc. ) are not capitalized as such assets are immovable and generally of value only to the City. No depreciation is provided for any asset capitalized in the General Fixed Assets Account Group, I i i l See accountants ' report. -15- I � 1.r CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS -- ( continued) .TUNE 30, 1988 1. SUWIARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) f. Property and Equipment: Property and equipment acquired by proprietary fund types are capitalized at cost at the time of purchase in the fund making the purchase. Both proprietary and general fixed assets acquired from gifts or contributions are capitalized at fair market value at the time received, or in the case of water fixed assets, at City Council acceptance date, Depreciation for both donated and acquired assets is calculated on the straight-line method over the estimated useful lives of the asset: shown below and charged to the operations of the respective fund. Production, pumping, transmissier, and distribution plant - IC to 50 years General plant- 20 to 50 years Transportation equipment- 5 to 30 years Interest is capitalized on proprietary fund assets acquired with tax- exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred four. the date of borrowing until completion of the project with interest earned on the invested proceeds over the same period. The City has capitalized $185,000 of interest on the construction of the Emerald Cove apartment complex. .~ g. Inventories: Inventories are accounted for in governmental funds by the consumption method, whereby inventories are capitalized and recorded as expenditures when used. Inventories of materials and supplies totalled $208,398 and are valued using the weighted average cost method. This amount is offset with an appropriate reservation of fund balance. �(� See accountants ' report -16- CITY OF HUNTI NGTON REACH NOTES TO FINANCIAL STATEMENTS t (continued ) JUNE 30, 1988 i 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CCNTINUED): A.+ .. h. Restricted Assets: I � Certain procrPds of long-term debt as well as certain resources set aside for their repayment are classified as restricted assets on the i balance sheet because their use is limited by applicable bond covenants or other restrictions. f ) i. Interfund Transactions: During the course of normal operations, numerous transactions occur T between funds. These result in operating transfers, residual equity transfers, balances due to ordue from other funds and balances advanced to or from other funds. Residual equity transfers represent nonrecurring or non-routine transfers of equity between funds. Operating transfers represent transfers between funds that are normal and recurring. Amounts that are due to or due from other funds j represent the current (due within one year) portion of monies that are to be paid to or received from other funds. Amounts that are advanced from other funds represent the long-tern portion of monies which will be repaid to other funds. Amounts that are advanced to I other funds represent the long-term portion of amounts that will be received from other funds. In governmental funds amounts that are advanced to other funds are also offset equally by a fund balance reserve account, which indicates that they do not constitute expendable, available financial resources and therefore are not available for appropriation. In proprietary funds there is no " reservation of fund equity. Quasi-external transactions represent interfund transactions that would be treated as revenues, expenditures or expenses if they ' involved organizations external to the government. 1'he City has recorded all quasi-external transactions as revenues, expenditures or expenses. Transactions that constitute reimbursement to a fund for expenditures or expenses initially made from it that are properly j applicable to another fund. are recorded .,is expenditures/expenses in the fund that it is reimbursed. All other interfund transactions are reported as transfers. it r.1 1 \0 See accountants ' report -17- I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1988 1. SUMMARY OF SLJNIFICANT ACCOUNTING POLICIES (CONTINUED): j. Long-Term Obligations: Governmental fund long-term debt (principal, interest and fiscal charges) is recognized as an expenditure when due regardless of when the expenditure is incurred. Obligations that are expected to be financed from spendable, available financial resources are reported as a fund liability. The remainder of the obligation is reported in the General Long--Term Debt Account Group. Bond discounts and issuance costs are recognized in the period that the debt is issued. Proprietary fund long-term debt is accounted for in the respective funds. Interest on the debt is recorded when incurred. Principal that is due within one year is classified as a current liability. The remainder is classified as a long-term liability. Bond discounts are recorded as a reduction of outstanding debt and are deferred and amortized over the term of the debt. k. Employee Compensated Absences: The City records the cost of vacation and sick leave when paid in the governmental fund types and when incurred in the proprietary fund types. At June 30, 1988, the unfunded liability for vacation and sick leave accumulated by the City's governmental funds totalled $3,821,634 (note 10g). The City has recorded this amount in the General Long-Term Debt Account Group with the assumption that these -- amounts will be paid with future financial resources rather than currently available spendable resources. In the proprietary fund types the liability of $119,227 has been recorded. These amounts represent the "cash surrender value" of all accumulated vacation and sick leave which is the amount that would be paid to employees if they terminate. Vacation is paid at 1001 of the accrued amount, while sick leave is paid at varying amounts depending on the employee's contract. See accountants ' report -18-- i I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued ) JUNE 30, 1988 i 1. SUMfABY OF SIGNIFICANT ACCO01TING POLICIES (CONTINUED): k. Employee Compensated Absences: r� In the proprietary fund types the liability of $119,227 has been recorded. These amounts represent the "cash surrender value" of all accumulated vacation and sick leave which is the amount that would be paid to employees if they terminate. Vacation is paid at 100% of the accrued amount while sick leave is paid at varying amounts depending on the employee's contract. 1. Fund Equity. The various types of fund equity recorded on the balance sheet are -- described below: Governmental Fund Types Reserved Fund Balance represents that portion of fund balance that is not appropriable for expenditure or that is legally segregated for a specific future use. Unreserved/Designated Fund Balance represents that portion of fund balance that has been tentatively set aside by the City Council. Unreserved/Undesignated Fund Balance represents the portion of fund balance - that is available to be appropriated and spent by the City Council. Proprietary Fund Types Retained Earnings represents the accumulated earnings of an enterprise or internal service fund. Contributed Capital represents the permanent fund capital of a proprietary fund which is created when a general fixed asset is transferred to a proprietary fund or a residual equity or certain types of operating transfers are made to a proprietary fund. A description of the changes in these amounts is shown in note 9(b). i 1 f i -`` See accountants' report -19- r CITY OF HUNTINGTON BEACH '. NOTES TO FINANCIAL STATEMENTS •P, (continued) t JUNE 30, 1988 r l 1. SUN ARY OF SIGNIFICANT ACCOUNTING POLICIES (COKTINUBD): j 1. Fund Equity: Account Groups r T k. Investment in General Fixed Assets represents the City's monetary investment in general fixed assets at cost. m. Property Tax Revenue: r ; Property tax in California is levied in accordance with article 13-A of the California constitution. The basic levy is a countywide-levy of one percent of total assessed valuation. This basic levy is allocated to county government, school districts, cities and special districts. Additional levies require two-thirds approval by voters and are allocated -- directly to the specific government unit. Property tax revenue is recognized in the fiscal year levied provided that the revenue is collected during the year or within 60 days of year-end. 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 Bate- March 1st of prior fiscal year Levy Date- July 1st Due Date, First Installment- November loth Due Date, Second Installment- February loth ~' Delinquent Date, First Installment- December 11th Delinquent Date, Second Installment- February llth The taxes are remitted to the local governments periodically during the year. Below are shown the dates and percentages from the County (dates and percentages vary slightly from year to year) 1 November 30th- 5% December 19th- 202 December 26th-- 20% February lst- Balance of First Installment March 28th- 5% April 26th- 34% -- July 26th of next fiscal year- Balance of Second Installment See 11ccountants' report -20- 4 6- 1 CITY OF HUNTINGTON BEACH ..1 VOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1938 i t 1. SUWARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): I I ' n. Allocation of Interest Income Among Funds: I The City pools all non-restricted cash for investment purchases. Interest income is allocated monthly to the various funds based on the month-end cash balances. Interest income from restricted cash is recorded directly in the fund earning the income. I o. Equipment Replacement Fund: I 7 All machinery and equipment which is not owned by proprietary funds is �1 owned by the Equipment Replacement Fund, an internal service fund. The machinery and equipment is leased to user departments. All machinery and equipment which does not replace existing equipment is purchased by the � respective fund and transferred to the Equipment Replacement Fund. This is recorded as a transfer out in the purchasing fund and contributed capital in the Equipment Replacement Fund. These are recorded as i operating transfers because even though they are permanent transfers of equity, they are normal and recurring and therefore are considered an operating transfer raWir than a residual equity transfer. p. Emerald Cove Rousing Fund Subsidy: The City operates the Emerald Cove Senior Citizens Apartment Complex and records the activity in the Emerald Cove Housing Fund, an enterprise fund. The project L.' subsidized by the Low-Income Housing Fund, a capital projects fund. "'fie activity is recorded as an enterprise fund because even though the ire cost of service is not recovered through rents, the "i City still wishes %11 determinations of net income. The transfer from the Low-Income Housl. "lmd is recorded as an operating transfer out because even though iL pe nnanent transfer of equity, it is normal and �.� recurring and set by Cou,, authorization. This subsidy is recorded as contributed capital in the >, rald Cove Housing Fund (see note 9b). � 1 r� � I See accountants ' report -21- I CITY OF HUNTINGTON 1EACH NOTES TO FINANCIAL STATCIENTS �— (continued) JUNE 30, 1988 M. 1, SUm MRY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): _q. Total Columns and Comparative Data on Combined Financial Stateme.,r s: The combined financial statements include total columns which aggregat,.' the financial statements of the various fund types and account groups. The columns are designated "memorandum only" because the totals are not comparable to a consolidation since interfund transactions (with the exception of certain leases between the oversight unit and component units described in note 2) are not eliminated. Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. 2. DESCRIPTION OF THE REPORTING 7ATITY: This report incorporates GASH Code Section 2100, "Defining the Governmental Reporting Entity," which outlines criteria to determine whether a separate legal entity's financial information should be included in the City's financial statements. Based upon the statement's guidelines, certain separate lege.l entities have been included in this report. The criteria used in evaluating the different entities were oversight responsibility. financial dependency, ability to influence ~' operations. designation of management, budget adoption, s:.gnificant influence over hperations, financing deficits or entitlement to surpluses, location within the City's geographic boundaries and benefit and general availability to the citizens of Huntington Beach. Below is a description of each of these entities and how their financial activity has been evaluated and incorporated into this report: Huntington Beach Public Facilities Corporation (Public Facilities Corporation)-- This entity was formed in 1970 to issue bonds to construct the civic center and library complexes. The City leases the facilities from the Public Facilities Ccrporation. The lease is a capital lease because title to the [aciliti- passes to the City upon termination of the lease. The Public Facilities 'irporation's original governing body was -- appointed by the City Council. :Iowever, the governing board itself !`� See accountants ' report -22- CITY Of HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 , l Z. DESCRIPTION OF THE REPORTING ENTITY (CONTIWUED): ' appoints any successors. The City Council adopts an annual budget for the Public Facilities Corporation which cannot terminate its lease with the ! City if the city meets the terms of the lease. At the termination of the lease, the Public Facilities Corporation will dissolve and its assets will revert to the City. The assets and related revenue and expenditures that are used for repayment of the bonds are recorded as a debt service fund. j Assets used to construct capital improvements are recorded as a capital projects fund. The capital projects fund normally receives no revenue other than interest. If additional funds are required for capital projects, they will be transferred from the Public Facilities Corporation J Debt Service Fund. Since the Public Facilities Corporation is a part of the City's reporting entity, the capital lease between t..;. City and the 7 Public Faci'ities Corporation has been eliminated. Parking Authority of the City of Huntington Beach (Parking Authority)- This entity was formed in 1967 to issue bonds to construct off-street parking facilities. The City leases the facilities from the Parking Authority. The lease is a capital lease because the City Council may, by resolution, dissolve the Parking Authority and deed the assets to the City. The Parking Authority's governing body is the City Council which -- annually adopts a budget for the Parking Authority. The Parking Authority �..' is financially dependent on the City for all its operations. At any time . � during the term of the lease the lease payment may be forgiven by tJ resolution of the City Council if there is sufficient cash in the Parking Authority to meet the debt service requirements. The assets and related revenue and expenditures that are used for repayment of the bonds are r recorded in a debt service fund. Assets used to construct capital improvements are recorded in a capital projects fund. The capital projects fund normally receives no revenue. If additional funds are Ell required, they will be transferred from the Parking Authority Debt Service Fund. Since the Parking Authority is a part of the City's reporting entity, the lease has been eliminated. URedevelopment Agency of the City of Huntington Beach (Redevelopment Agency)- This entity was formed in 1967 to facilitate the renovation of older areas in the City limits. The City Council serves as governing body of and adopts an annual budget for the Redevelopment Agency. The Agency is financially dependent on the City for all of its operations. U See accountants ' report -23- f CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ..� (continued) JUNE 30, 1988 2. MCRIPTION OF THE REPORTING ENTITY (CONTINUED): The tax increment revenue received by the Agency which can only be used to repay Agency debt is recorded in a debt service fund and the capital improvements made are recorded in a capital projects fund. Long-term advances from the City to the Agency have been recorded as a luny.-term advance on the respective fund's balance sheet with a corresponding reservation of fund equity. The Agency's debt is recorded in the :eneral -- Long-Term Debt Account Group since these amounts will be paid from future financial resources. Huntington Beach Civic Improvement Corporation (Civic Improvement Corporation)- This corporation was formed to provide for the defea,,ance of the Huntington Beach Public Facilities Corporation Leasehold Mort+,age Bonds- 1st Issue as described in Note 10. The Civic Improvement Corporation isst,pd $20,000,000 of certificates of participatio.1 to provide for this defeasance. The governing board of the Civic Improvement Corporation is the City Council which also adapts its annual budget. The Civic Improvement Corporation is dependent upon the City for all of its operations. The Civic: Improvement Corporation has title to the Civic Center complex an►! leases it to the City. It is a capital lease because title to the Civic Center complex reverts to the City at the end of the lease. The lease cannot be terminated if the City meets all its financial obligations. The assets pledged for repayment of the certificates of participation and the related revenues and expenditures are recorded in the Civic Improvement Corporation Debt Service Fund. The lease has been eliminated. Huntington Beach Public Financing Authority (Public Financing Authority)- This corporation was formed in March, 1988 to issue bonds to finance loans to four of the five project areas of the Redevelopment Agency. The _ governing board of the Public Finance Authority is the City Council which also adopts its annual budget. The only financial activity of the Public Financing Authority is the issuance and repayment of the bonds, and the receipt of the loan repayments from the Redevelopment Agency. The activity r of the Public Financing Authority is recorded in a debt service fund. There are many other governmental agencies, including the County of Orange. various elementary school districts, the Coast Community College District. the Huntington Beach Union High School District and various special districts which provide services within the City. These entities have independently elected governing boards and are not a component unit of the City of Huntington Beach and their financial information is not included in this report. Clio See accountants ' report -24- I CITY OF HUNTINGTON BEACH All NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 f 3. CASE AND I NY!'S TKENTS: `1 Cash and investments at June 30, 1988 consisted of the fallowing (in i thousands): Cash and investments $75,432 Cash with fiscal agent 26,,197 Total 10$ 1,629 --� Investments are stated at the lower of cost or market value, with the 'I exception of the investments of the Deferred Compensation Fund, which are recorded at market value. If market values decline below cost, no loss is recorded if such declines are considered temporary. The cost basis of Investment in Mutual Funds was adjusted downward by $361,865 to reflect a permanent decline in value through June 30, 1988. As of September 9, 1988 there is additional, unrealized loss of $32,990. { The following disclosures are made in accordance with GASB Statement Number 3. Collateral for Deposits Under provisions of the California Government Code, California banks and -' savings and loan associations are required to secure a City's deposits by pledging government securities with a value of 110% of a City's deposit. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of '_50% of a City's total deposits. The collateral for deposits in Federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as a third-party trustee. These securities are physically held in an undivided pool for all California public agency depositors. The trustees keep detailed - records of the security pool. If a member financial institution fails. the entire collateral pool becomes available to satisfy the claims of governmental units. Accordingly, these collateral pools constitute pools II of public deposits. L See accountants ' report -25- i J "l CITY OF HUNTINGTON REACH NOTES TO FINANCIAL STATEMENTS (continued) JUKE 30. 1988 3. CASH AND INVESIMEN! (CONTINUED): The City Treasurer, at his discretion, may waive the collateral requirement for deposits which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. It is the City's policy to waive the collateral requirement if there is a higher interest yield on the investments. Authorized Investments _ The City of Huntington Beach operates its pooled cash investments under the "Prudent Man Rule" (California Civil Code sections 2261 et seq.). This allows a broad spectrum of investments as long as the investment is deemed prudent and allowable under legislation of the State of California (Government Code Section 53600 et seq.). Under the provisions of the City's investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in the following types of instruments: a. Bankers acceptances b. Negotiable certificates of deposit c. Commercial paper �- d. Bonds issued by the City e. Obligations of the United States Treasury f. Federal Agency obligations of: Federal Intermediate Credit Bank (FICBs) Federal Land Bank (FLBs) Federal Home Loan Bank (FHLBs) Federal Iational Mortgage Association (FNMAs) Small Business Administration (SBAs) - Government National Mortgage Association (GNMAs) Tennessee Valley Au'.horities (TVAs) Student Loan Association Notes (Sallie Mpe's) g. Obligations of the State of California or of any local agency within the State of California: The Local Agency Investment Fund (LAIF) is a special fund of the _. California State Treasury through which any local government may pool investments. Each agency may invest up to $5,000,000 in this fund. -- Investments in LAIF are highly liquid and may be converted to cash 7 1/� See accotntants ' report -26- �w CIT`! OF HUNTINGTON BEACH NOTES TO FINANCIAL. STATEMENTS (continued) JUNK 30, 1988 3. CASH AND IRMTHEM (CORTINUED): i g . obligations of the State of California or of any local agency within the State of California: within 24 hours. Investments with LAIF are secured by the full faith "1 and credit of the State of California. h. Repurchase Agreements: Throughout the year ending June 30, 1988, the City utilized overnight repurchase agreements for temporary investment of idle cash. Such agreements were used on average of 20 to 22 times per month and generally did not exceed 10% of the City's investment portfolio. i. Reverse-Repurchase Agreements: _j Although the City's investment policy does not preclude the use of Reverse-Repurchase Agreements, the City did not borrow through the use of reverse repurchase agreements at any time during the year. j. Medium-'term Corporate Notes � i J k. Mutual Funds I Safekeeping Arrangements for Investments Under Sections 53651 to 53653 of the California Government Code, as amended, the collateral underlying an agency's investments must be delivered to the City. If U.S. Federal obligations are used as the '^' underlying collateral, the delivery may be made by "book-entry" only. �.� For all other collateral. the security must be physically delivered to r r the City or a third-party custodial agent. 1 Under California Senate Bill number 2115, passed in 1986, a bank is permitted to maintain the underlying securities in its 'trust or Safekeeping Department when acting as a third-party custodial agent. CGASB Statement 3 requires the City's bank balance of investments to be categorized as follows (in thousands): i 'II oee accountants ' report -27- I � I I CITY OF HUNTINGTON BEACH NOTES TO FINAKCIAL STATEMENTS (continued) JUNK 30, 1988 3. CASH AIRS Ili'V88THENTO (CONTINUED)s Category 1- Insured or registered, or securities held by the City or its agent in the City's name. Category 2- Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name, r` Category 3- Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the City's name. �- Category Carrying Market 1 2 3 Amount Value FHLB Securities S 949 S - $ 500 $ 1,449 $1,470 Corporate Notes 1,477 - 2,239 3,716 3,721 Commercial Paper - - 13,500 13 z500 13,500 Subtotal S 2,426 p $l6,239 18,665 18,691 .- Deposits which are 100% insured or collateralized: Demand Accounts 11,188 11,188 Certificates of deposit 36,530 36,530 Investment in LAIF 51000 5,000 _1 Investment in Mutual Funds 7,712 7,712 Cash with Fiscal Agent 26,197 26,197 Total Bank Deposits and Investments 105.292 105,318 Less Demand Warrants outstanding (3,663) (3,663) Total Cash and Investments $1011629 $101,655 1 At June 30, 1988, the City had deposits totalling $1,587,000 in out-of =� j state financial institutions, which is in violation of California Code j section 53635. L� / See accountants ' report -28- i CITY OF HUNTINGTON BEACH -� MOTES TO FINANCIAL. STATEMENTS (continued) JUNK 30, 1988 A. p1:PENWM CANPSATION: 7 Permanent City employees have the option of deferring a portion of their salary under Section 457 of the Internal Revenue Code. These amounts are invested in savings accounts, certificates of deposit and other prudent investments. The City retains title to these funds until withdrawn by the employee. which may take place at termination or any later date. The Y, assets of the plan remain subject to the general claims of creditors of ; the City. The amount of deferred compensation payable at June 30, 1989 ' was $11.126,283 which represents the market value of the investments. Since the City has a fiduciary responsibility to administer the plan, the J assets are recorded in an agency fund in the city's financial statements. t The assets of the .Ian are subject to the claims of the City's general 1 creditors and mus. remain the property of the City until paid or made available to the participants. The City believes that it is unlikely that , -: it will use the assets to satisfy the claims of general creditors now or in the future. The City offers two different investment mediums for participants. The choice of investment is made by the participants. 5 � DIWENM REVENUE _ Certain revenues in governmental funds due from the Redevelopment Agency have been deferred until received from the Agency. Interest on these amounts accrues at 10% per annum. They are detailed below (in thousands): GENERAL FUND: Sales price of the Huntington Breakers apartment site in 1983 $ 406 Development fees deferred in 1984 and 1985 302 1986/87 sale of land to Redevelopment Agency 1,228 located in Main/Pier project area Interest an above amounts and on general fund advances from 1978/79 to 1987/88 2t190 -, Total General Fund 4,12E I : I See accountants' report -29- i CITY OF HUNTINGTON REACH I j I i NOTES TO FINANCIAL STATEMENTS r- (continued) JUNE 30, 1988 5. OMFZUW RE%'F= (CONTIMW: { SPECIAL REVENUE FUNDS: Park Acquisition and Development Fund: Sale of Emerald Cove site to Redevelopment Agency 1.918 �- Development fees deferred in 1985 248 Land safe proceeds paid to Emerald Cove 832 Interest on above amounts 274 Total Park Acquisition and Development Fund 3.272 Sewer Fund: -- I Development fees deferred in 1985 43 Interest on above amounts IS Total Bever Fund 58 Planned Local Drainage: Development fees deferred in 1985 72 Interest on above amounts and on advances -� from 1987/88 50 Total Drainage Fund 122 Total Special Revenue Funds 3.452 DEBT SERVICE FUNDS: L_ Public Financing Authority: Interest on advances from 1987/88 368 Total Deferred Revenue �7,946 6. RETIROIFJ1"p PLAN: a. PIan Description: The City contributes to the California Public Employees Retirement System (PERS). an agent, multiple employer retirement system that acts as a common investment and administrative agent for participating public f t�'� Sep accountants ' report -30- 2 CITY OF HUNTINGTON BEACH DOTES TO ►dINANCIAL STATEMENTS (continued) JUNE 30. 1988 6. MI1 EMENT PLAN (CONTINUED): 1 "I a. Plan Description: t entities in California. Generally only an employee's base salary l (excluding overtime) is subject to retirement benefits. The total payroll --. for the year ending June 30. 1988 was $36,712,672. The payroll subject to retirement benefits was $34,538,912. i 1 The plan covers all permanr,nt City employees and temporary employees who Work more than 1000 hours in a twelve month period. Benefits vest after five years of service. 71aere are two groups of covered employees: i Safety employees- include aWrrn police, fire and marine safety employees ~ Miscellaneous employeeL- all other covered employees b. Employee and Employer Contribution Obligations: The City makes two types of contributions on behalf of covered employees. The first contribution, represents the amount required to be made by the City (the employer rate). The second represents an amount which is normally paid 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. ,J The employer rate is set by PEELS and changes from year to year. The employer rates for the fiscal year ending June 30, 1988 are shown below: Miscellaneous Safety Category Category Normal Cost Rate 6.4232 15.7632 Unfunded Liability Rate 1.0782 3.630Z Total Required 7.501% 19.393% L t See accountants ' report -31- i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL. STATEMENTS + (continued ) .TUNE 30 , 1988 r l 6. RETIROWNT PLAN (CONTIMM): r b. Employee and Employer Contribution Obligations: The member rates for the fiscal year ending June 30, 1988 are as follows: Member Rates as a Percentage of Wages Local Miscellaneous Members- 72 1 Local Safety Members- 9% -' The employer rate contributes the remaining amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS actuari• • --id actuarial consultants and adopted by the Board of -- Administrat:.-vn- c. Funding Status and Progress: Pension benefit obligation is a standardized measure of the present value of future pension benefits estimated to be payable in the future due to ._ employee service to date. It helps assess the funding status of the system. assess progress made in accumulating sufficient assets to pay benefits When due, and make comparisons among employers. This measure is independent of the funding method used to determine City contributions to the system. PFRS conducted an actuarial valuation to determine the City's pension benefit obligation as of June 30, 1987, but reflected all plan amendments adopted through June 30. 1988. Significant actuarial assumptions used Were as follows: . Rate of return on present and future assets- 8.52 per annum . Projected salary increases for covered employees due to inflation- 5.75% per year _ 4rojected salary increases due to merit- 1.25% per year. Postretirement benefit increases- O% -- 4$ee accountants ' report -32- ` i i CITY OF HUNTINGTON If EACH �+ NOTES TO FINANCIAL STATEMENTS ' (continued) JUNE 30, 1988 i 6. RZTIRE14W PLAN (CONTINUED): i C. Funding Status and Progress: The pension benefit obligation as of June 30, 1987 was as follows (in thousands): Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $39,147 Current Employees: i Accumulated employee contributions and investment. Jearnings 28,695 Employer-financed, vested 46,133 Employer-financed, non-vested 1,380 Total pension benefit obligation 115,355 Met assets available for benefits 105,612 Unfunded pension benefit obligation $9,743 _ Since there was no analysis of the pension benefit obligation as of June 30, 1986. no analysis of the total change in the pension benefit obligation is presented. _. d. Actuarially Determined Contribution Requirements and Contributions Made: PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. This method states that the normal cost for an employee is the level amount Which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the _. Entry Age Cost method in Which the employer's total normal cost is expressed as a level percent of payroll. PERS also uses the level VIA See accountants ' report -33- � I CITY OF HUNTINGTON BEACH l NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 6,, RETIRFJIENT PLAN (CONTINUED): ' d. Actuarially Determined Contribution Requirements and Contributions Made: I percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the year 2000 for prior service benefits and in 2011 for current service benefits. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. The contribution to the system for 1987/88 of $7,134,000 was made in r accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1986. The contribution consisted of the normal cost, $3,633,000 (10.162 of current covered payroll) and a $757,000 amortization of the unfunded actuarial employer contributions of $4,390,000 (12.28% of covered payroll). The City made employer contributions of $4,390,000 (12.28% of covered payroll). e. Trend Information Trend information gives an indication of the progress made in accumulating '- sufficient assets to pay benefits when due. Ten year trend information may be found in the California Public Employee's Retirement System Annual Financial Report. Until ten years of data are available, as many years as are available will be presented. Three years of historical trend information is required in the City's Comprehensive Annual Financial Report. Until three years of information are available, as many years as are available will be presented. Only the information for fiscal year 1986/87 is available and is shown below: Net Assets available for benefits expressed as a percentage of 91.6% the pension benefit obligation � Unfunded pension benefit obligation, expressed 27.2% as a percentage of annual covered payroll Employer contributions expressed as a percentage of annual _ covered payroll. These contributions were made in accordance 12.3% �- with actuarially determined requirements See accountants ' report -34- i I 1 CITY OF HUNTINGTON BEACH ,.. NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 7. SFU INSURANCE: The City is self-insured for workers' compensation, general liability and certain health claims. The self-insurance covers the first $150,000 for worker's compensation claims and the first 075,000 of each health claim. l .. f Claims in excess of self-insurance limits are covered by insurance up to $1,000,000 for health and the statutory limit for workers' compensation. The City maintains no general liability policy. Self-Insurance activity is recorded in an internal service fund. It is i the City's policy to charge expense claims that are reasonably determinable and where the evidence of the City's liability is probable in accordance with GASB Code Section C,50.110. Expense is recognized for i claims that have occurred but have not yet been reported to the City. Charges are made by the Self-Insurance Fund to other funds based on estimated costs. The liability for self-insurance claims includes an estimate for amounts incurred but not reported at year-end. Transfers I from the General Fund are periodically made to cover deficits caused from Inadequate charges to other funds. S. INTlUMM TRANSACTIONS: a. Receivables/Payables: i --, Individual interfund receivables and payables at June 30, 1988 were as i follows (in thousands): Advances to Advances from —' Other Funds Other Funds --t General Fund $16,710 Special Revenue Funds: Sewer 58 Planned Local Drainage 372 Grants 1,064 Park Acquisition and 3,272 $ 140 Development "1 i ..J "1 •O See accountants ' report -35- J CITY OF HUNTINGTON BEACH MOTHS TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1988 8. Irt10Il= TRAMSACTIONS (CONTINUE): , it a. Receivables/ Payabies: Advances to Advances from ti Other Funds Other Funds Debt Service Funds: Public Financing Authority $15,237 Enterprise Funds: Water Utility 1,289 Emerald Cove Housing 944 General Long-Term Debt Account Group 36,918 _ Totals 3�4 8.002 JIL002 b. Operating Transfers: Below is a schedule reconciling total operating transfers in with total operating transfers out (in thousands): Operating transfers in $3,154 Plus current year transfers to Equipment Replacement Fund (a proprietary fund) which were recorded as 420 contributed capital in the Equipment Replacement Fund Plus transfers from Low Income Housing Fund to the -- Emerald Cove Housing Fund (a proprietary find) which were recorded as contributed capital in the Emerald Cove Housing Fund. 33 Operating transfers out 13 607 c. Residual Equity Transfers: During the year $1.350.000 was transferred from the Public Facilities Corporation Debt Service Fund to the General Fund to be used for capital improvements at the Central Library. This amount is reserved in the General Fund as described in note 13. q;I/ See accountants ' report •.36- I f CITY OF HUNTINGTON BEACH .� NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 9. nopitIETARY FUND suPPLCW.NTARY INFORMATION: r . a. Segment Information for Enterprise Funds. I � The City maintains thr.!e enterprise funds; Water Utility, Meaduwiark Golf Course and Emerald Cove Housing. Certain key financial data was as follows (in thousands): I.i MEADOWLERK EMERALD WATER GOLF COVE UTILITY COURSE. HOUSING TOTAL Operating Revenues $10,147 $ 305 $ 606 $11,058 Depreciation 1.147 27 79 1,253 �- Expense Operating (513) 278 269 34 Income (Loss) II_ Net Income (Loss) 15 213 (35) 193 Contributed Capital Received, 2,463 0 33 2,496 Net Net Acquisitions (Dispositions) 7,554 0 134 2.688 of Fixed Assets I � �= Net Working Capital 3.885 717 986 5,588 Total Assets 37,696 3,968 6,921 48,585 Long-Term [ ! Obligations, 977 1 ,700 5,467 8,144 " Net of Current Portion Total Equity 34,225 2,197 1.355 37,777 ` lee accountants' report -37- u CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS -- (continued) JUNE 30, 1988 � 9. PROPRIETARY FM SUPPLWIXTARY INFORMATION (CONTINUED): r b. Contributed Capital: ' Below is a schedule of the changes in contributed capital during the year (in thousands): Water Meadowlark Emerald Equipment Source: Utility Golf Course Cove Housing Replacement w Developer $ 2,463 ►_ Contributions Low Income Housing Transfer 33 (note 8b) -- Equipment Purchases by City (note 8b) 420 _ Total Additions $ 2,463 $ - $ 33 $ 420 -- j Contributed Capital July 1, 1987 32,045 1,267 1.340 11,794 _ i Contributed Capital, S_ 34_,5.0_8 I1.267 $ 1.373 �5 _12,214 June 30, 1988 Y 10. GFIIEM LONG-TERM DEBT: .-. i Below is a summary of changes in general long--term debt for the year j ending June 30, 1988 (in t.housands): I ~ Y) See accountants ' report -38- CITY Or KUNTINGTOM BEACK MOTES TO rINANCiAL STATEMENTS (continued) JUNE 30, 1988 10. CEMENAL tow.-Tsem W&T WONT ED) ' Balance Balance Outstanding Outstanding , •, July 1, June 30, I 1 1987 Additions (Retirements) 1988 1970 Park Bonds $2,885 $ 0 8(295) $2,590 Public Facilities Corporation Leasehold 3,210 0 (210) 3,000 Mortgage Bonds- "1 2nd Issue Parking Authority 945 0 (120) 825 w. Revenue Bands Civic Improvement Corporation w Certificates 20,000 0 (170) 19,830 of Participation -� Coastal Conservancy 425 0 (17) 408 [dote .► Compensated Absences 3,576 246 0 3,822 Advances From 16,123 23,161 (2,366) 36,918 Other Funds Amounts D►jc Under Owner Participation 1,408 0 0 1,408 -� ASreement Public Financing Authority Revenue 0 26,775 0 26,775 Bonds { Total S48,572 $50,282 jj3j178) 12LS76 See accountants ' report -39- ..1 4 w I ' } I w CITY OF HUNTINCTON REACH NOTES TO FINANCIAL STATEMENTS r (continued) JUNE 30, 1988 M i lo. GuatAL Lodi'.-TERK DEBT (CONTINUED): I a. 1970 Bark Bonds: On March 1, 1970 the City sold $6,000,000 of general obligation bonds to r acoluitc and construct pork facilities. Principal matures annually on March 1st with interest, at 6%, payable semi-annually. The annual debt service requirements to amortize the bonds outstanding at June 30, 1988 are as follows (in thousands): � . Year .- Ending June 30. Principal Interest Total 1989 $310 $155 $465 1990 305 137 442 1991 350 118 468 1992 370 98 468 1993 395 75 470 1994 415 52 467 1995 445 27 472 �- Total 2 590 J662 $3,252 b. Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- Second Issue: On September 1, 1972 $5,000,000 of leasehold mortgage bonds were issued to zonstrur•t the Central Library complex. The bonds are secured by a lease '~ whereby the City annually transfers $399,000 to the Public Facilities r- j Corporation. Principal matures annually on September 1st with interest ranging from 5.0% to 5.9% per annum payable semi-annually The annual debt '- service requirements to amortize the bonds outstanding at June 30, 1987 are as follows (An thousands): �13& W See accountants ' report -40- 1 CITY of HUNTINGTON BEACH NOTES TO FINANCIAL. STATEMENTS (continued) .JUNE 30, 1988 i 10. GF.MMA1. LONG-TERM MT (CONTINUED): I b. Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds Second Issue: Year Ending ^!( June 30, PrincIpal Interest Total .1 1989 S 230 $ 159 $ 389 1990 240 146 386 1991 260 132 392 1992 270 117 387 1993 290 101 391 1994 305 84 389 1995 320 66 386 1996 340 46 386 1997 360 28 388 1998 385 10 395 gal $3,000 $ 889 83,889 c. Parking Authority Revenue Bonds: On September 1, 1968 $2,300,000 of revenue bonds were issued to construct off-street parking improvements. The bonds are secured by a lease Which requires that the City budget annual transfers to the Parking Authority sufficient to meet the debt service requirements on the bonds. Principal matures annually on September 1 and bears interest at 5.25% per annum, payable semi-annually. The annual debt service requirements to amortize the bonds outstanding at June 30, 1988 ore as follows (in thousands): a u 1 u See accountants ' report -41- i r- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS .� (continued) ' JUNE 30, 1988 1 10. GENEK&L LOUG-TFRM DEBT (CONTI11I D) c. Parking Authority Revenue Bonds: i Year Ending June 30, Principal ,Interest Total - l . . 1989 $ 125 $ 40 S 165 1990 135 33 168 1991 140 26 166 1992 150 18 168 1993 166 10 170 1994 115 3 118 Total s 825 130 955 d. Huntington Beach Civic Improvement Corporation Certificates of .- Participation: On July 15, 1986 the Huntington Civic Improvement Corporation issued ;~ $20,000,n00 of certificates of participation in order to 3efease the �.- Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- First Issue and construct certain parking facilities. The Civic r- Improvement Corporation owns the Civic Center complex and leases it to the City. the City has agreed to make annual lease payments equal to debt service requirements on the certificates. Tile interest rates on the certificates varies between 4.75% and 7.92. Interest is payable semi- } annually on February 1st and August lst with principal maturing annually -r on August 1st. Debt service requirements to maturity are as follows (in thousands): r See accountants ' report -42- • ' CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 10. r.gnatAL LONG-TEEM DEBT (COIITINUED): d. Huntington Beach Civic Improvement Corporation Certificates of Participations Year Ending _; June 30. Principal Interest Total 1989 $ 220 $ 1,521 $ 1,741 j 1990 230 11508 1,738 19y'_ 245 1,494 1,739 1992 260 1,479 I,739 1933 275 1,462 1,737 w; 1994 295 1,443 1,738 1995 315 1,422 1,737 1996 335 1,399 1,734 1997 360 1,374 1,734 1998 385 1,346 1,731 1999 415 1,316 1,731 2000-2007 4,715 9,079 13,794 2008-2016 11,780_ 5,234 _ 17,014 Total $19.830 _ 30 U77 4$ 9,907 C� e. California Coastal Conservancy Note Payable: In March, 1983, a storm damaged the municipal pier. The California Coastal Conservancy agreed to lend the City $425,000 to cover a portion of the repair costs. The first $150,000 of the note bears interest at 8.00% per annum and the remaining $275,000 bears interest at 8.862 per annum. Payments are due annually on July 1, 1997. Future required payments on the note are as follows (in thousands): G i r� See accountants ' report -43- I� I t r, r CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 i 10. GENERAL LONG-TERM DENT (CLW.INUED): e. California Coastal Conservancy Note Payable: Fiscal Year Ending June 30,_ Amount 1989 $67 1990 67 1991 67 1992 67 1993 and after 338 $ 606 Less Interest (198) Principal at June 30, 1988 408 � f f. Compensated Absences Payable: There is no fixed payment schedule to pay the governmental fund liability of $3,821,634 for compensated absences earned through June 30, 1988 (see ►T note 1k). g. Long-term Advances from Other Funds: � I There is no fixed repayment schedule for the Redevelopment Agency to pay the lung-term advances from the City which totalled $36,917,666 at June 30, 1988. Below is a description of the various transactions (in thousands): I See accountants' report -44- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ' (continued) JUNE 30, 1988 1 ' 10. GEF,*-AA!. LUKC-TERM DEBT (CONTINUED) I C. Long-term Advances from Other Funds: Sale of land by the Park Acquisition and Development Fund for $1,918 plus interest of $192 which was $2,110 computed at 10% per annum (note: $860 of interest } was repaid during the year): _ Sale of Land by the General Fund in 1983 for $406 plus interest of $235 which was computed at 10% 641 per annum: Cash advances from the General Fund from 1978 to present for $12.334 plus interest of $1,722 14,056 which was computed at 10% per annum: l Cash advances from the Grant Fund in 1983- no interest: 1,064 Developers fees payable to various funds totalling -' $688 which are subsidized by the Agency plus -- interest of $236 which was computed at 11% per annum: 924 Land sale from the General Fund in June, 1987 for $1,228, plus interest of $123 computed 1,351 at 10% per annum: r. Cash advances from the Public Financing Authorit; -' in June 1988 totalling $14,869 plus interest of 15,237 $368 computed at varying rates: Advances from the Drainage Fund totalling $250 plus interest of $25 computed at 10% per annum: 275 `j Advances from the Water Fund totalling $1,139 in 1986/87 and 1987/88 plus interest of $121 which ,1 was computed at 10% per annum: 1,260 -� Total amount advanced from other funds $36,918 , i See accountants ' report -45- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL. STATENENTS (continued ) JUNE 30, 1988 to. GBILLBAL TANG-TEBII DEBT (CONTINUED): g. Long-term Advances from Other Funds: Below is a reconciliation of the changes in amounts advanced from other funds by the Redevelopment Agency recorded as general long-term debt for the year ended JUkie 30, 1988: Amount due to other funds on July 1, 1987 $16,123 Advances Received 21,108 r• Advances Repaid (2,366) Transactions recorded in other funds as deferred revenue 2.053 Amount advanced from other funds, June 30, 1988 $36,918 h. Amounts Due Under Owner Participation Agreement: 1. In 1983, the Redevelopment Agency entered into an Owner Participation ,- Agreement (OPA) with Mola Development Corporation. Mola Development Corporation agreed to construct certain public improvements and right of ` way in the Oakview Redevelopment project area known as the Charter Centre improvements. The City agre- ' to purchase these public improvements for $1,408,047 and to defer receipt of building permits and development fees, '�- totalling $211,394 which would would normally have been payable at time of initial occupancy. The Redevelopment Agency agreed to advance these fees to the City. For the purchase of the public improvements and right-of-way, the Redevelopment Agency agreed to pay to Mola on or before July 1st of each year (beginning July 1. 1987) from tax increment revenue received by the Agency directly attributable to the development by the Charter Centre improvements. the lesser of: the costs of the public improvements and right of Way totalling $1.408.047 plus interest accruing at 11% per annum (totalling $1,691,251 at year end). . an amount equal to 65% of the tax increment revenues directly caused by _. tP, Charter Centre improvements and received by the Redevelopment Agency during the 10 calendar years commencing with the 1986 calendar year. See accountants ' report -46- 4 I j CITY OF HUNTINGTON BEACH NOTE TO FINANCIAL STATEMENTS (continued) JUNE 30. 1988 7 10. GENE[tAL. L -TERK DENT (CONTINUED): i i � I � I It. Arounts Due Under Owner Participation Agreement: i The Agency has the right to offset the deferred development fees described above against the amounts due to Mola Development Corporation for the public improvements and right of way. On July 1, 1987 the Agency paid $125,000 to Mola Development Corporation as the first installment. payment. The amount represented interest on the 51,408,047 cost of public improvements and right of Way. I On July 6, 1988, subsequent to year-end, the City and Mola Development Corporation entered into agreement which discharged the prior financial commitments of both the City and the Agency (see note 16). I. Public Financing Authority Revenue Bonds: On May 1, 1988 the Public Financing Authority issued $26,775,000 of Revenue Bonds to finance loans to four of the Redevelopment project areas. - The bonds are secured by four separate loan agreements between the Public Financing Authority and the Redevelopment Agency. Each loan agreement is secured by a pledge of all taxes levied upon all taxable property within _i the related project area. A portion of the proceeds of the bonds were Withheld from the Public Financing Authority since the increment assessed valuation (assessed valuation minus base year valuation) was not sufficient to yield tax increment revenues to repay the loans. These proceeds are recorded as "Restricted Cash" on the Public Financing Authority's balance sheet. This escrowed cash is invested in securities ^� with yields sufficient enough to cover debt service on the bonds should the increment assessed valuation not increase enough to yield sufficient tax increment revenues. If the increment assessed valuation becomes large enough, this cash will be released for general use by the Public Financing Authority. Interest on the bonds ranges from 5.75% to 8.375%. Interest is payable semi-annually on May 1st and November 1st. Principal matstres annually on November 1st. Debt: service requirements are as follows (in thousands): ._i I :' ` See accountants report -47- i . CITY OF HUNTINGTOP BEACH NOTES TO FINANCIAL STATEMENTS r (continued ) ' 1 JUNE 30 , 1988 r 10. GUZ2AL LONG-TERM DEBT (CONTINUED): i. Public Financing Authority Revenue Bonds: I Year Ending June 30, Principal Interest Total 1989 $ 265 $ 2,181 $ 2,446 1990 270 2.165 2,435 1991 295 2,149 2,444 ,... 1992 305 2,131 2,436 1993 325 2,111 2,436 1994 340 2,089 2,429 1995 370 2,065 2,435 1996 405 2.038 2,443 1997 430 2,009 2,439 1998 465 1,976 2,441 1999 495 1,940 2,435 2000-2007 5,735 13.775 19,510 2008-2018 17,075 4,858 21 ,933 n6J 75 41 487 $ 68,262 J. Defeased Bonds Outstanding: As of June 30. 1988, there were $6,560,000 of defeased Public Facilities Corporation Leasehold Mortgage Bonds -1st Issue outstanding. The debt service on these bonds is being handled by an escrow account consisting of ._ guaranteed Federal securities with yields sufficient to fund all of the required debt service. 11. EMMIETARY FUND LORG-TERM DEBT: The follows is a summar of changes in proprietary fund long-term deb following Y E P p Y C I'm t for the year ending June 30, 1988 (in thousands): See accountants ' report -48-- � II II I �i i "1 CITY 0! HUNTINGTON BEACH --, NOTES TO FINANCIAL STATEMENTS j (continued) JUNE 30, 1988 t 11. PROPRIETARY PULED LMC-TYRM MT: ` Balance Balance Outstanding Outstanding `~ July 1, June 30, 1987 Additions (Retirements) 1988 1963 Water Revenue Bonds S 869 0 0 $ 869 San Joaquin 271 0 (51) 220 Reservoir Note Meadowlark Golf �. Course Note 1,756 0 (27) 1,729 Emerald Cove Certificates of Participation, net 4,510 13 0 4,523 .� of unamortized discount of $77 Note Payable County of Orange 0 409 0 409 _1 Compensatr.d Absences 126 0 (7) 119 Advances from other 944 0 0 944 Funds J Claims Payable 7,167 169 7,336 Total $15,643 591 (S85) 16 149 1 � The current portion of the proprietary fund long-term debt is $333,452. ~� I ~' I ee accountants ' report -49- CITY OF HUNTINGTON BEACH ? :zOTES TO FINANCIAL STATEMENTS .. (continued) { JUNE 30, 1988 11. PROPRIETARY FUND LOWr-TEL% DEBT (CONTIMIED) i I a. 1963 Hater Revenue Bonds: ;I on November 1, 1963 the City sold $3,750,000 of revenue bonds to construct water improvements. The bonds are secured by revenues of the Water Fund. Principal matures annually on November 1 and bears interest at 3.5% per annum, payable semi-annuall;,. The annual debt service requirements to amortize the bonds outstanding at June 30, 1988 are as follows (in thousands): Year Ending June 301 Principal Interest Total 1989 180 26 206 1990 190 20 210 1991 200 13 213 1992 200 6 206 1993 99 1 loll Total S 869 66 �4 935 The bond indenture requires that the Water Fund net revenues equal or exceed 1.25 times the annual debt service requirement (principal and interest). Net revenues are defined as gross revenues less maintenance and operation revenues, excluding depreciation. The City has complied with this requirement as shown below (in thousands): Gross revenues $10,714 Operating expenses, excluding $ 9.513 interest and depreciation Net revenues $ 1,301 Debt service $ 30 Debt service coverage 43.3 See accountants ' report -50- • I - - - d r, t 1 CITY OF HUNTIIIGTOR SPACH ROTES TO FINANCIAL STATEIIENTS i (continued) JUNE 30, 1988 r 11. PROPRXHTtRY FUND WNG-4WI DEBT (CONTIRIIED): b. San Joaquin Reservoir Note Payable: r In 1979 the City and several other local cities and water districts purchaser] the San Joaquin Reservoir. The City is paying a portion -� (13.56%) of the debt service for the 1961 construction of the reservoir plus operating and improvement costs. In the event of default, the expensrs and/or debt service payments shall be reallocated among the remaining non-defaulting owners in proportion to the peYcentage interest owned as though the party in default slid not exist. The City has recorded ' its portion of the reservoir as a fixed asset in the Water Fund. The future required payments on the note are as follows (in thousands): Year -- Ending Required June 30, Payment i989 S 60 _ 1990 60 1991 61 I992 55 236 less amount representing interest (16) Principal Outstanding $220 at June 30, 1988 e. Meadowlark Golf Course Note Payable: ..1 The City financed its purchase of the Meadowlark Golf Course through a lcng-term 72 note. The note payable is collateralized by future revenues and does not represent a general obligation of the City. The City has leased the golf course to an outside party for a minimum amount of $150,000 annually through 2007 and a percentage of income based upon gross revenues for the years 2003-2009. As part of the City's initial payment of $928.000 the County of Orange contrijuted $600,000 upon the City's guarantee to use general City funds, when and if necessary, to ensure that Ifeadowlark Golf Course will be maintained as open space. I See aicounLants ' report -51- -1 •,� '7j ' �• . � C;%•cJ%i'�/'�• ,,f.y.y"(f,!,;1Y•y'.y, fe"r ;°•. .,�'' +'• '}F; •'..S ,:5 ,P w fyf,.Rpy M.7'�'h'�+F;�'�r I•tT', rY . r.Cr r CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30;'r1988 11. PROPRIETARY FUND TANG-°TEKM BHBT (CONTINUED): c. Meadowlark Golf Course Note Payable: The future required payments on the note a� :s follows (in thousands): Year -- Ending Required June 30, Payment r 1989 S 150 1990 150 1991 150 1992 150 1993 and after 21865 3,465 -- less amount c.� representing interest 0,736) Principal Outstanding $1,729 at June 30, 1988 ` d. Emerald Cove Housing, Certificates of Participation: �.. r-- On June 1, 1987, the Redevelopment Agency sold certificates of participation to finance the construction of a senior citizens apartment complex. The certificates bear interest at 9.5% per annum, which is payable semi-annually. The land upon which the project is being built was sold to the Redevelopment Agency by the City. The City is leasing back the project and operating it as an enterprise. Lease payments, equal to interest of $36,417, are payable monthly. The holders of the certificates have a proportionate interest in the lease payments to be made by the City. The certificates are secured by the land and the buildings constrt►cted, an assignment of -rents and an irrevocable letter of credit issued by a bank. A discount of $126,500 is being amortized to maturity. Below is a schedule of debt service requirements to maturity (expressed in '- thousands): Vq6 Sec accountants ' report -52- t CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 11. PROMIETARY FUND LONG-TVRM DEBT (CORTIMM): w d. Emerald Cove Housing Certificates of Participation: Year Ending -- June_30,- _ Principal Interest Total 1989 $ 0 $ 437 $ 437 1990 0 437 437 1991 0 437 437 1992 0 437 437 ' 1993 0 437 437 1994 4,600 400 5,000 Totals $4,600 11,585 IL 185 e. Note Payable- County of Orange: In July, 1987 the City received Fire Communications Equipment valued at $409,140 under are agreement with the County of Orange whereby the City will repay the County for the equipment. The equipment and note are recorded in the Equipment Replacement Fund. Interest rates on the note vary between 5.4% and 6.5%. Debt service requirements are as follows (in thousands): Year Ending Required June 30, Payment .j 1989 $ 98 1990 98 1991 98 1992 97 1993 and after 97 less amount representing interest (79) ••� Principal Outstanding $409 at June 30, 1988 —"- ` See accountants ' report -5j- w N\ CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ,.. (continued) JUNE 30, 1988 r 11. MPEUETARY E'iJND LONG-TM DEBT (CONTINUED): f. Compensated Absences: There is no fixed repayment schedule to repay the compensated absences for proprietary fund types of $119,050 at June 30, 1988. g. Advances From Other Funds: There is no fixed repayment schedule to repay the amounts advanced from other funds of $943,811 at June 30, 1988. :- h. Claims Payable There is no repayment schedule for claims payable as of June 30, 1988 (see note 7). 12. CHARGES IN FIXED ASSETS: L.. r- Below is a schedule of the changes in general fixed assets for the year (in thousands): r Balance Balance July 1, 1987 Additions Dispositions June 30, 1988 - i Land $ 37,903 $1,492 $ 611 $ 38,784 Buildings 25,156 0 0 25,158 `- Other 1,733 0 0 1+733 Total L§L 794 $1J492 $ 611 LfL5 675 Below is a schedule of changes in proprietary fund fixed assets for the year (in thousands): See accountants' report _54_ I CITY OF 11UNTINGTOR BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30 1988 12. CEl RUES IN FIXED ASSt'±T5 (CONTI1fM): Enterprise Funds: Balance Balance July 1, 1987 Additions Dispositions June 30 1988 I - Land $ 4,732 S 0 S 0 $ 4,732 Buildings 5,201 132 0 5,333 Machinery and it Equipment 46,582 2,588 36 49,134 Total Cost $56,515 2 720 $ 36 $ 59,199 Less accumulated depreciation (201270) (21,503) Net Book Value, $36,245 S 37,696 --- Enterpris•. Funds Internal Service Funds i -. Balance Balance July 1, 1987 Additions Dispositions June 30, 1988 Machinery and $19,451 2,568 �L _752 JIL267 Equipment Less accumulated depreciation (8,840) (10,128) Net Book Value, 1S 0,611 I1 139 Internal Service I --- Funds i 13. RESERVES AND DESIGNATIONS OF FUND EQUITY: I tinder the provisions of GASB Code Sections 1800.121-123, the City has set up reserves and designations of fund equity. Reserves indicate amounts which cannot be appropriated in future periods or which are legally set aside for a specific future use. Designations represent amounts that the City has made tentative plans to use ;n a future period. The City's reserves and designations are described below (in thousands): i � `tpSee accountants ' report -55- J _ . Qrr+ws.�rr�arEa�w�rs�a�rsswrrs—.�� ----- F� rsn CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ... i (continued) JUKE 30, 1988 ' 13. RESERVES AND DESIGIATIONS OF FUND EQUITY (CONTINUED): Special Debt Capital General Revenue Service Projects Fund Funds Funds Funds Total RESERVES -- Encumbrances $ 1,842 $ 2,558 $ - $ - $ 4,400 Long-term 12,584 1,314 - - 13,898 receivables Reimbuisement - 585 - - 585 agreements Continuing 1,350 - - 30,245 31,595 projects Debt service - - 32,873 - 32,873 w Land held for - - - 4,854 4,854 resale r- Inventory 208 - - 208 ::: TOTAL RESERVES 15,984 42457 32,875 35,099 88,415 ,. DESIGNATIONS ` Stibsequent ;-ear's 4,046 1,550 - - 5,596 e�_penditures - Other fund deficits 873 - - _ 873 TOTAL DESIGNATIONS 4,919 1,550 6,469 TOTAL $20,903 $ 6,007 3�2,873 $35,099 $941984 tr,� See accountant7 ' report -56- CITY OF HUNTINGTON BZACIl UrTES TO FINANCIAL STATEMENTS (continued) JUKE 30. 1988 13. BESFAVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED): a. Reserves for encumbrances represent amounts committed for unperformed _ services or for undelivered goods where a commitment to purchase has been made. b. Reserves for long-term receivables represent amounts included in advances to other funds and other receivables which are not scheduled to be repaid until future years, and for which there is no offsetting deferred revenue. expected future Reserves for reimbursement agreements represent ex c. g P P reimbursements to developers for sewer and drainage construction. d. Reserves for continuing projects represent amounts committed for long- term projects not yet completed. -- e. Reserves for debt service represent amounts accumulated in debt service funds or set aside in another fend in accordance with a bond indenture or similar covenant. f. Reserves for land held for resale represent land held by the Agency that is legally committed for resale. g. Reserves for inventory represent amounts for general supplies inventory. �+ h. Designations for subsequent years' expenditures are made to provide for _ deficits b;idgeted in subsequent years. I. Desienatior:s for other fund deficits represent amounts to cover fund i deficits in tte Self-Insurance Fund. i 14. COMKITHMS PJM CONTIi10EIL^IES: a. Lesol Actions: There are certain legal actions pending against the City that have arisen in the course of normal operations. In the opinion of management and the �+ City Attorney, the ultimate resolution of these actions is not expected to have a significant impact on these financial statements. I t See accountants' report -57- CITY OF HUNTINGTON BEACH NOTE:; TO FINANCIAL STATEMENTS (continued) JUNE 30, 1988 14. COWITHENTS AND CONTINGE►.NCIE.S (CONTINUED): b. Mortgage Revenue Bonds: The City established a program in February, 1983 to provide funds for the purchase of home mortgages within the City. Under this program, a total of $40,000,000 of mort3age revenue bonds has been issued, $20,000,000 in -- March, 1983 and an additional $20,000,000 in July, 1984. In 1983 the City also issued $16,000,000 of Loans to Lender Revenue Bonds to construct an apartment complex for low and modarate income housing. In 1985 the City also issued $25,000,000 of Multi-Family Housing Revenue Bonds for construction of various apartment complexes. The bonds are payable from, and are secured by, a pledge of payments made on the home mortgages and all funds held by the trustee under the indenture agreements. The bonds are not an indebtedness of the City and there exists no legal obligation on the part of the City to make payments un the bonds from any source other than the revenue and assets that were pled¢ed. Accordingly, these programs have been excluded from the accompanying combined financial statements. c. Land Purchases- A.C. Marion: The City has entered into an agreement during the year to purchase a , parcel of land from a private party for $3,190,000. The agreement required the City to pay $1,000,000 for the purchase of phase I of the parcel and pay $500,000 for phase II of the parcel. For the next three years the City may purchase one of the remaining phases each year. For the use of the remaining parcels the City pays a rental/option fee which is paid quarterly on February 28th, May 31st, August 31st and November 30th. The City may cancel the agreement at any time in which case the obligation to pay the remaining rental/option fees or to purchase any remaining phases ceases. Listed below is the schedule of payments and rental/option fees for the life of the contract (in thousands): _. ��� See accountants ' report -58- i CITY OF HUNTINGTON BEAC11 [TOTES TO FINANCIAL STATEMENTS (continued ) ' JUNE 30, 1988 w 1 lh, CONHI'1WVNTS AND CONTINGENCIES (CONTINUED): c. Land Purchases- A.C. Marion: 1 Fiscal Year — Ending Purchase Quarterly June 30, Price Phase Rents 1989 S 500 3 $108 1990 500 4 71 1991 690 5 26 Total $1,690 $345 d. Postretirement Benefits: The City has agreed to provide post-retirement medical insurance benefits to safety employees. This plan pays a portion of medical insurance premiums from the employee's retirement date until age 65. Subsequent to year-end, the City agreed to provide this benefit to management employees. No costs were incurred during the year. The plan will be funded by contributions of the City and employee over the course of the empluyee's --� employment. 15. OTHER RP.Qt11RFD DISCLOSURES: a. Fund Deficit- Self Insurance Fund: ' The Self-Insurance Fund (an internal service fund) has a deficit retained earnings of $873,017. This deficit will be funded in future years through increased charges to other funds. J `1�See accountants ' report -59-- W CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUKE 30, 1988 15. OTHER REQUIRED DISCLOSURES (CONTINUED): r b. Fund Deficit- Water Fund: The Water Fund (an enterprise fund) has a deficit retained earnings o1 $283,052. A rate increase was enacted in August, 1988 which will help this deficit to be eliminated in future years. r c, Budgetary Information: General Fund expenditures exceeded appropriations by $361,865, which represents a non-budgeted entry recognizing the decline in market value of the City's investments at June 30, 1988 (see note 3). r 16, SU'ASEQUENT EVFXTS: On July 6, 1988, the Redevelopment Agency and Mola Development Corporation agreed on terms that satisfied the owner Participation Agreement which - originated is 1983. The terms of the agreement are described in note 10(h). The agreed upon payment for the construction of right-of-way and public improvements was $1,200,000 which was paid on 3uly 7, 1988. The agreed upon amount of deferred development fees due to t1r.- City was $300,000. Mola advanced the Agency $100,000 on July 7, 1988 for its first installment an the deferred development fees. The balance of $200,000 will be paid in three installments of $81,843 beginning June 30, 1989 at ��- 11% interest. cloth the Agency and Mola agreed that this would satisfy all financial terms of the Owner participation Agreement. r- �e �7v See accountants ' report -60- _ FINANCIAL STATEMENTS OF i INDIVIDUAL FUNDS --� AND ACCOUNT CROUPS I _l y I i GP�RAL P[1lID , � The General Fund is used to account for all financial activity that is not required to be accounted for in another fund. I.J 1 C r .. c� J ITI NJ SCHEDULE D-1 CITY OF HUNTINGTON BEACH GENERAL FUND COMPARATIVE BALANCE SHEET June 30, 1988 and 1987 (-expressed in thousands) 1i I , I ASSETS I 1988 1987 I Cash and investments $ 11,950 $ 10,884 Cash with fiscal agent 191 Taxes receivable 1,958 11891 Accounts receivable 867 201 4 Interest receivable 89 43 Inventory 208 146 Advances to other funds 16,710 12,751 Deposits and other assets 28 72 Due from other agencies 442 462 TOTAL ASSETS 432,443 $ 26,450 LIABILITIES AND FUND BALANCH LIABILITIES: Accounts payable $ 1,241 $ 1,342 Accrued salaries 3,527 2,212 Deposits 19200 777 Deferred revenue 4,126 3,374 TOTAL LIABILITIES 10,094 7,705 i FUND BALANCE: ~! Reserved for inventory 208 146 Reserved for encumbrances 1,842 1,935 Reserved for long-term receivables 12,584 8,376 .� Reserved for capital projects 1,350 - Designated for other fund deficits 873 1,563 -�' Designated for future year's expenditures 49046 - Unreserved/undesignated 1,446 6,725 TOTAL FUND BALANCE 22,349 10,745 TOTAL LIABILITIES AND FUND BALANCE $ 32,443 $ 26,450 �, l _61- SCHEDULE B-2 CITY OF HUNTINGTON f#EACII GENERAL FUND STATEHENi OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL „^ For the year ended June 30, 1988 With comparative totals for the year ended June 30, 1987 - (expressed in thousands) 1988 Variance - ^- Favorable 1987 Budget Actual (Unfavorable) Actual REVENUES: Property taxes $ 21,154 $ 21,827 $ 673 $ 21,175 �- Other tares 30,680 30,021 (659) 28,698 Licenses and permits 3,512 3,276 (236) 3,309 Fines, forfeitures, and penalties 2,644 2,335 (309) 2,096 From use of money and property 4,378 4,708 330 4,398 ; . From other agencies 8,093 7,920 (173) 71880 Charges for current services 2,852 3,208 356 2,799 •- Other 535 1,410 875 456 TOTAL REVENUES 73,848 74,705 857 _, 70,811 EXPENDITURESt r Current: City council 97 78 19 82 City Administrator 582 633 (51) 555 City Treasurer 279 288 (9) 282 City Attorney 358 376 (18) 564 City Clerk 126 128 (2) 153 Administrative Services 2,913 2,856 57 2,680 p- Community Development 19917 2,015 (98) 1,949 ' Fire 11,745 11,840 (95) 119187 Police 229010 22,357 (347) 20,511 Community Services 7,442 6,809 633 5,959 Public Works 17,089 15,835 1,254 14,567 - Non-departmental 90282 7,040 2,242 7,709 Capital outlay 1,845 977 868 1,028 TOTAL EXPENDITURES _ 75,685 71,232 4,453 67,126 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (ly 37) 3,473 5,310 3,685 OTHER FINANCING SOURCES (USES): Operating transfers in 1,400 1,280 (120) 19285 Operating transfers out (2,184) (2,137) 47 (3,017) , Lose on Investments - (362) (362) (470) TOTAL OTHER FINANCING SOURCES (USES) (784) (1,214) (435) (2,202) EXCESS OF REVENUES AND r OTHER SOURCES OVER _ (UNDER) EXPENDITURES AND OTHER USES _ (2,621) 2l 254 4,875 11483 FUND BALANCE - BEGINNING OF MiR 18,745 18,745 - 12,430 Prior period adjustment _._...�_... - - 1.0�9 FUND 3ALANCE - BEGINNING OF YEAR RESTATED 18,745 18,745 - 13,529 Residual equity transfers in 1,350 16350 3,733 FI1NTi BALANCE - END OF YEAR 17a474 22 34Q J 4 875 $ 18 7L5 110 -62- \A I SPF.CIM, PZW.NUR FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. r Gas Tax- This fund accounts for financial activity apportioned under- the Street and Highway Code of California. Expenditures may be made for any street-related purpose allowable under the code, Sewer- This fund is used to account for fees received from developers to construct new sewer facilities. Planned Local-Drainage- This fund is used to account for fees received from developers to improve and upgrade the City's drainage system. Vj Federal Revenue Sharin&- This fund accounts for receipt and disbursement of revenue sharim entitlements. Public Communications- This fund accounts for revenue received from cable television _1 rights grantee; within the City limits. These monies must be spent on community- oriented television. ' ~^ Grants- This fund accounts for grant monies received from federal, state and county agencies not accounted for in other funds. Expenditures for these funds are restricted to the granting agencies requirements. -.� ParL Acquisition and Development- This fund ib for fees received form developers to develop the City's park system. ..J Narcotics Forfeiture- This fund accounts is used to account for monies received from the State of California that are used for special law-enforcement purchases. J �J 1 L,ul w ' I CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS '- COMBINING BALANCE SHEET June 30, 1988 With comparative totals for June 30, 1987 (expressed in thousands) Planned Federal Local Revenue ASA)ETS Gas Tax Sewer Drainage Sharing Cash and investments a 1,633 $ 4,689 $ 3,084 $ 601 Accounts receivable - - - - Interest receivable 8 23 17 3 Advances to other funds - 58 372 • Due from other agencies 329 - - - Deposits and other assets - - - - .- TOTAL ASSETS $ 1,970 $ 4,770 $ 3,473 $ 604 LIABILM ES AND FUND BALANCES LIABILITIESs - - - - Accounts payable $ 231 $ 38 $ $ 3 Accrued salaries Deposits 14 - ~ Due to other funds - - - Advances from other funds - - - Deferred revenue 58 122 TOTAL LIABILITIES 245 96 122 3 FUND BALANCES: Reserved for encumbrances 1,725 92 239 7 r Reserved for long-term receivables - - 250 ~ Reserved for reimbursement agreements - 26 559 - Unreserveds Designated for subsequent years expenditures - - 945 594 Undesiguated 4,556 1,358 TOTAL FUND BALANCES 1,725 4,674 3,351 601 TOTAL LIABILITIES AND FUND BALANCES $ 11970 4,770_ 3,473 604 (,i�'� -63- SCHEDULE C-1 i Park i Acquisition i Public Other and Narcotics Totals Communications Grants Development Forfeiture _ 1988 1987 $ 47 $ 356 $ 3,041 $ 92 $ 13,543 $ 14,592 - - - 4 1 - 14 1 67 55 1,064 3,272 - 4,766 5,144 108 - - 437 599 yS 48 1 Sl8 6 327 $ 93 $ 18,813 20 395 - L_L -- $ 1 $ 27 $ 40 $ $ 340 $ 1,097 8 11 - - 19 18 - - - 14 16 _ - - - - - 1,000 140 - 140 - - - - 3�272 3,452 4,083 -" 9 38 3,452 � r 3,965 6,216 ._J - 426 69 - 2,558 3,462 - 1,064 - - 1,:.014 1,202 - - - - 585 585 j ..J 11 - - - 1,550 1,656 ` t 28 2,806 93 8,841 7,274 39 1,490 2,875 93 14,848 14,179 $ 48 1,528 §_ 6,327 $ 93 18,813 20 395 I f:J I� -64- CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALI.NCES For the year ended June 30, 1988 With comparative totals for the year ended June 30, 1987 (expressed in thousands) ^- Planned Federal Local Revenue Gas Tax Sever Drainage Sharing_ REVENUES: Other taxes - Licenses and permits - 144 - Fines, forfeitures and penalties - - - - From use of money and property 156 368 268 49 From other agencies 3,656 - 500 - TOTAL REVENUES 3,812 512 769 49 EXPENDITURESc Current: City Administrator - - - Community Development - - - - Police - - - - Community Services - - - - Capital outlay 3,948 248 677 21 TOTAL EXPENDITURES 3,948 248 677 21 T 4. EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (136) 264 91 28 OTHER FINANCING SOURCES (USES): ~ Operating trsnafera in - - - - Operating transfers out (11280) (91) _ 20) TOTAL OTHER FINANCING SOURCES (USES) (12280) (91) (20) EXCESS OF REVENUES AND • OTHER SOURCES OVER (UND-R) EXPENDITURES _ AND OTHER USES (1,416) 173 71 28 FUND BALANCES - BEGINNING OF YEAR 3,141 4,501 31280 S71 FUND BALANCES - END OF YEAR L i,725 - k 674 3 351 601 I . . SCHEDULE C-2 rrI i Park Acquisition Public Other and Fircotics Totals Commnnications Grants Develorment Forfeiture 1988 1987 $ 186 $ - $ - ;+ $ 186 $ 166 - - 928 - 1,072 1,610 - - - 3 3 9 356 197 - 1,403 1,586 1,456 1,870 90 77,572 6�.43 r� 195 1,812 2,995 93 10,236 9,925 ••-1 175 - - - 175 155 - 1,178 - - 1,178 487 �- - 13 - - 13 8 57 88 - 145 131 -16 569 1,139 61618 7,864 1 191 1,817 1,227 _ 8,129 8,645 4 (5) 1,768 93 2,107 1,280 --� - �..�... (I.- 23 (31) (16) 438) (1.L865; ~ (31) (16) (1,438) (1,842) ..1 � "1 (27) (21) 1,768 93 669 (562) 66 11511 1,107 - 14,179 14,741 39 1 490 2 875 $ 93 14 84t3 14 179 i l ( SCHEDULE C-3 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND � CHANGES 1N FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1988 (expressed in thousands) wr GAS TAX Variance - Favorable Budget Actual (Uufayorablo) REVENUES: From use of rwney and property $ 275 $ 156 $ 019) From other agencies 4,974 3,656 (1,318) TOTAL REVENUES 5,249 3,812 (1,437) EXPENDITURES: Capital outlay 12,703 _ 3,948 9,755 EXCESS OF REVENUE OVER (IWDER) EXPENDITURES (7,454) (136) 7,316 I , OTHER FINANCING USUS: Operating transfers out (11400) (1,280) 120 EXCESS OF REVENUES OVER (UNDER) EXPENDI7URES AND OTHER US,SS (8,854) (1,416) 7,438 ~- FUND BALANCE - BEGINNING OF YEAR 3,141 3,141 FUND BALANCE - END OF YEAR � 5 713)$ _ 1,725 $ 7.438 SEWER REVENUES: Licensee and permits $ 135 $ 144 $ 9 From use of money and property 275 368 ?3 From other agencies 10 r (10) TOTAL REVENUES 420 512 92 EXPENDITURES: Capital outlay 827 248 579 EXCESS OF REVENUE OVER (UNDER) EXPENDITUPY.S (407) 264 671 OTHER FINANCING USESs Operating transfers out (91) (91) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (498) 173 671 FUND BALANCE - BEGINNING OF YEAR 4,501 4.501 .� FUND BALANCE - END OF YEAR $ 4,O(13 $ 4,674 $ 671 (� (CONTINUED) [ (,v -67- SCHEDULE C-3 1 CITY OF HUNTINGTON LEACH COMBINING STATF14E11T OF REVENUES, EXPENDITURES AND j CHANGES IN FUND BALANCES - BUDGET AND ACTUAL. (Continued) For the year ended June 30, 1988 (expreesed in thousands) 7 PLANNED LOCAL DRAINAGE Variance - Favorahle Bud het Actual (Unfavorable) REVENUNG: Liccuees and permits $ 150 $ - $ (150) From use of money and property 150 268 118 From other agencies 150 Si10 350 TOTAL REVENUES 450 768 318 EXPENDITURE3: Capital outlay 1,345 677 668 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (895) 91 986 OTHER FINANCING SOURCES (USES): Operating transfers out (20) (20) - I f� EXCESS OF REVENUES AND OTHER SOURCES OVER ' (UNDER) EXPENDITURES AND OTF.ER USEF (915) 71 986 i FUND BALANCE - BEGINNING OF YEAR 3,280 3,280 - 1 FUND BALANCE - END OF YEAR $ 2.,365 $ 3.351. 986 I FEDERAL REVENUE SHARING REVENUES: From ure of money and property $ 35 Ss.-- 49 $ 14 EXPENDITURES: Capital outlay 550 21 529 EXCESS OF REVENUES AND OTHER SOURCES OVER �. (UNDER) EXPENDITURES AND 0111EP. USES (515) 28 543 FUND BAi(sUCE - BEGINNING OF YEAR 573 573 — FUND BALANG'F. - END OF YEAR $ 58 $ 60l ^�+ 543 •~ (CONTINUED) -68- R SCHEDULE C-3 CITY OF HUNTINGTON BEACH + IPM SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REP-NOES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) ,.., F(r the year a-nded .Tune 30, 1988 (expressed in thousands) PUBLIC COMMUNICATIONS Variance - Favorable r- Budget Actual (Unfavorable)_ REVENUES: other taxes $ 200 $ 186 $ (14) From use of money and property 8 9 1 TOTAL REVENUES 208 195 (13) EXPENDITURESs City Administrator 168 175 (7) Capital outlay 17 16 1 TOTAL EXPENDITURES 185 191 (6) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES 23 4 (19) OTHER FINANCING USESs Operating transfers out (31) (31) - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (8) (27) (19) FUND BALANCE - BEGINNING OF YEAR 66 66 FUND BALANCE - END OF YEAR 58 $ 39 �, (19) OTHER GRANTS REVENUESs From use of =ney and property $ 186 $ 356 $ 170 From other agencies _ 1,569 19456 (113) ` TOTAL REVENUES 1,755 11812 57 EXPENDITURES, Community Development 4,479 1,178 3,301 Police 14 13 1 Community Services 79 57 22 Capital outlay 691 369 122 TOTAL EXPENDITURES 5,263 1,817 31446 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (3,508) (5) 3,503 OTHER FINANCING SOURCES: Operating transfers in (16) (16) - EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (3,524) (21) 3,5)3 FUND BALANCE - BEGINNING OF YEAR _ 1,51.1 1,511 FUND BALANCE - END OF YEAR $ (2,013)L 1,490 3,�503 (CONTINUED) -69- r Lt� g SCHEDULE C-3 PITY OF HUNTINGTON BEACH iPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) i For the year ended June 30, 1988 ;.; (expressed in thousands) PARK ACgUISITION AND DEVELOrnENT Variance Favorable -Budget _ Actual (Unfavorable) FAWENUES: -- Licenses and permits $ 1,258 y" 928 $ (330) From use of money and property BO 197 117 From other agencies 1,268 11870 602 TOTAL REVENUES 2,606 2,595 389 .i EXPENDITURESs Community Services 148 88 60 Capital outlay 31405 1,139 22266 TOTAL EXPENDITURES 3,5.53 12227 2j326 EXCESS OF REVENUE OVER (UNPER) EXPENDITURES (947) 1,768 2,715 FUND BALANCE - BEGINNING OF YEAR I,107 1,107 YUND BALANCE - END OF YEAR 160 $ 2,875 $ 2,715 NARCOTICS FORFEITURE � REVENUES: -� Fines, forfeitures and penalties $ 3 $ 3 $From other. agencies 100 90 (10) } TOTAL REVENUES 103 93 (10) FUND BALANCE - BEGINNING OF YEAR - FUND bA1.ANCE - FND OF YEAR $ 103 $ 93 (10) i r.1 1 ..1 i �i M i i (CONTINUED) -70- SCHEDULE C-3 � CITY OF HUNTINGTON BEACH � SPECIAL REVENUE FUNDS i COMBINING STATEMENT OF T.ZVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PM (Continued) For the year ended June 30, 1988 �Y (expressed in thousands) TOTALS Variance Favorable Budget Actual (Unfavorable) REVENUES: M Other taxes $ 200 $ 186 $ (14) Licenses and permits 1,543 1,072 (471) Fines, forfeitures and penalties 3 3 - Prom use of money and property 1,009 1,403 394 Prom other agencies _ 8,071 71572 (499) TOTAL REVENUES 10,826 - 101236 (590) _. EXPENDITURES: City Administrator 168 175 (7) Community Development 4,479 11178 3,301 Police 14 13 1. Community Services 227 145 82 Capital outlay 19,538 6�,618 12j920 TOTAL EXPEhtDITURFS 24,426 82129 16,297 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES _ (13,600) 2,107 15,707 OTHER FINANCING USES: M. Operating transfers out (11558) (1=438) 120 EXCESS OF REVENUES OVER - (UNDER) EXPENDITURES AND OTHEM? USUS (15,158) 669 15,827 FUND BALANCE - BEGINNING OF YEAR 14,179 14t179 FUND BALANCE - END OF YEAR (979)$ 14,848 $ 15,827 -71- I I I i it I I I i r DEBT SERVICE FUNDS Debt service funds are used to account for the accumulation of resources for the payment of general long-term debt. 1970 Park Bonds- This fund records the receipt and disbursement of property tax revenues to meet the debt service requirements of the 1970 Park Bonds, a general obligation bond. I� Redevelopment Agency- This fund records the property tax increment revenues received due to Redevelopment projects. The tax increment will be used to repay the debt of the I� Redevelopment Agency. Public Facilities Corporation- This records the accumulation and disbursement of monies ' j -- required to meet the debt ser-rice requirements of the Huntington Beach Public Facilities Corporation. II Civic Improvement Corporation- This records the accumulation and disbursement of monies I required to meet the debt service requirements of the Huntington Beach Civic - Improvement Corporation. Parking Authority- This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Parking Authority of the City of Huntington Beach. Public Financing Authority- This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Huntington Heath Public Financing Authority. I I I I CITY OF HUNTINGTON BEACH , i DEBT SERVICE FUNDS .� COMBINING BALANCE SHEET June 30, 1988 With comparative totals for June 30, 1987 (expressed in thousands) 1970 ~ Park Redevelopment Bonds Agency ASSETS: Cash and investments $ 116 $ 2,528 Cash with fiscal agent - - Taxes receivable 13 100 — Interest receivable 1 13 Advancee to other funds - - TOTAL ASSETS 130 $ 2,641 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Deferred revenue - TOTAL LIABILITIES FUND BALANCES: Reserved for Debt Service 130 2,641 _ TOTAL LIABILITIES AND FUND BALANCES 130 2,641 -- , SCHEDULE D-1 j i , i Public Civic Public i Facilitizs Parking Improvement Financing Totals Corporation Authority Corporation Authority 1988 1987 $ .. $ - $ - $ - $ 2,644 $ 1,773 576 1,203 1,810 11,564 15,153 5,045 - - - 113 32 ' 5 27 2 48 96 82 - 15,237 15,237 - $ 581 1,230 1,812 26 849 $ 33,243 $6.932 i 7 - - 368 368 - j - - 366 360 7 581 1,230 1,812 26,481 32,875 6,925 i 581 1,230 1 812 26 849 $ 33,243 $ 6,932 , , I i 1 � i 1 r -73- �t i CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS ^' COMBINING STATEMENT OF REVENUES, EXPENDITURES AND MANGES IN FUND BALANCES ,.. For the year ended June 30, 1988 With comparative totals for June 30, 1987 (expressed in thousands) 1970 Park Redevelopment Bonds Agency REVENUES: Property taxes $ 492 $ 1,565 From use of money and property 9 170 TOTAL REVENUES 501 1,735 EXPENDITURES: -. Current: Non-departmental - - Principsl 295 180 Interest 176 619 TOTAL EXPENDITURE'S 471 799 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 30 936 r OTHER FINANCING SOURCES (USES): Operating transfers in - - Proceeds of long-term debt - - Operating transfers out - - TOTAL OTHER FINANCING SOURCES (USES) - , EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTTER USES 30 936 FUND BALANCES - BEGINNIVG OF YEAR U0 1,705 Residual equity transfer in - - Residual equity transfer out - __._. - :. FUND BALANCES - END OF YEAR 130 2,641 r SCHEDULE A-2 1 Public Civic Public Facilitiza Parking Improvement Financing Totals Corporation Authority Corporation Authority 1988 1987 $ - $ - $ 2,057 $ 1,631 -� 32 62 135 266 674 _ 458 32 62 135 266 2,731 2,089 I - - - 98 96 - 7 210 120 170 - 975 595 171 49 1,530 - 2,545 1,594, I 381 169 1,700 98 3,618 2,189 (349) (107) (1,565) 168 (887) (100) 399 - 1,475 - 1,874 2,137 - - - 26,313 26,313 - , I 399 1,475 26,313 26,187 2,134 50 (107) (90) 26,481 27,300 2,034 1,881 1,337 1,902 - 6,925 6,865 - - - - 2,004 (1,350) - - - (1,350) (3,978) 581 $ 11230 1,812 $ 26,481 32 875 S 61925 ~, I 1� -75- J 4 1 CITY OF HUNTINGTON BEACH SCHEDULE D-3 i DEBT SERVICE FUNDS �- COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL For the year ended June 30, 1988 (expressed in thousands) 1970 PARK BONDS Variance - r Favorable &EVENUESt Budget Actual (Unfavorable) Property taxes $ 459 $ 492 $ 33 From use of money and property 5 9 4 TOTAL REVENUES 464 501 37 EX_-PENDITURESt Principal 295 295 Interest 176 176 TOTAL EXPENDITURES 471 471 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (7) _ 30 37 FUND BALANCE - BEGINNING OF YEAR 100 100 FUND BALANCE - END OF YEAR $ 93 $ 130 37 r REDEVELOPMENT AGENCY ,- REVENUES: �r Property taxes 1,045 $ 1,565 $ 520 From use of money and property 105 170 61 TOTAL REVENUES 1,154 1,735 581 ,3XPENDITURESs Principal 180 180'* - �. Interest 619 619 .� TOTAL EXPENDITURES 799 799 EXCESS OF REVENUES OVER EXPENDITURES 355 936 581 �-• FUND BALANCE - BEGINNING OF YEAR 1,705 1,705 - FUND BALANCE END OF YEAR 2,060 2,641 581 - .� (CONTINUED) 4? -76- I SCHEDULE D-3 CITY OF HUNTINGTON BEACH .a DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1988 (expressed in thousands) PUBLIC FACILITIES CORPORATION ! Variance - 1 Favorable. Budget Actual (Unfavorable) ^' REVENUES: ! From use of money and property $ 165 $ 32 (133) EXPENDITURES: Principal 210 210 Interest 171 171 j TOTAL EXPENDITURES 381 381 - EXCESS OF REVENUE OVER (UNDER) Y! RXPENDITURES (216) (349) (133) OTHER FINANCING SOURCES: Operating transfers in 399 399 - EXCESS OF REVENUE AND OTHER SOURCES _ OVER (UNDER) EXPENDITURES 183 50 (133) FUM) BALANCE - BEGINNING OF YEAR 1,881 1,881 - Residual equity transfers out (1,350) (1,350) - FUND BALANCE - END OF YEAR $ 714 $ 581 $ (133) _j PARKING AUTHORITY REVENUES: y� From use of money and property $ 85 $ 62 (23) EXPENDITURES: Principal 120 120 - ••1 Interest 49 49 TOTAL EXPENDITURES 169 169 - EXCESS OF REVENUE OVER (U'IDER) EXPENDITURES (84) (107) (23) FUND BALANCE - BEGINNING OF YEAR 1,337 1t337 - FUND BALANCE - END OF YEAR $ I,253 $ 11230 $ (23) J (CCNTINULD) i 1 -77- ! i ,i SCHEDULE D-3 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS CCMBINING STATEMENT OF REVENUES, FXPP,'MITURES AND CHANGES IN FUND BALANCES - BUDGET i:iD ACTUAL (Continued) For the year ended June 30, 1988 (expressed in thousands) CIVIC IMPROVEMENT CORPORATION i Variance - Favorable Budget Actual (Unfavorable) REVENUES: _ From use of money and property $ _225 i 135 _ (90) 1 EXPENDITURES: Principal 170 170 - Interest 1,796 11530 266 TOTAL EXPENDITURES 11966 1,700 266 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (11741)� ( 5565) 176 OTHER FINANCING SOURCES: Operating transfers in 1,475 1.475 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES (266) (90) 176 »- FUND BALANCE - BEGINNING OF YEAR 1,902 1,902 - �. FUND BALANCE - END OF YEAR $ 1,636 $ 1.812 176 „- PUBLIC FINANCING AUTHORITY REVENUES: From use of money and property $ 266 $ 266 EXPENDITURESt Non-departmental 98 98 - EXCESS OF REVENUES OVER EXPENDITURES 168 _ 168 OT:iF;R FINANCING SOURCES: Proceeds of long-term debt 26,313 26.313 - EXCESS OF REVE14IIES AND OTHER SOURCES OVER (UNDER) EXPENDITURES 26,481 26,481 FUND BALANCE - BEGINNING OF YEAR - - FUND BALANCE - END OF YEAR 26,481 $ 26,481 � -78- e SCHEDULE D-3 i CITY OF HUNTINGTON BEACH M DEBT SERVICE FUNDS COMBINING STATMIENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ' (Continued) For the year ended June 30, 1988 (expressed in thousands) {. TOTALS I Variance - Favorable Budget Actual (Unfavorable) 1 REVENUES: Property taxes $ 1,504 $ 2,057 $ 553 From use of money and property 855 674 181) TOTAL REVENUES 2,359 22731 372 EXPENDITURES: Non-departmental 98 98 �? Principal 975 975 Interest 2,811 2,545 266 -- TOTAL EXPENDITURES 3,884 39618 266 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (1,525) (887) 638 OTHER FINANCING SOURCES: Operating transfers in 1,874 1,874 - �; Proceeds of long-tern debt 26,313 26,313 TOTAL OTHER FINANCING SOURCES 28,187 _28,187 EXCESS OF REVENUE AND OTHER SOURCES OVER EXPENDITURES 26,662 27-,300 638 ' j FUND BALANCE - BEGINNING OF YEAR 6,925 6,925 - I u Residual equity transfers out (1,350) (1,350) - I _. " FUND BALANCE - END OF YEAR 32123.7 ,$ 32,875 638 I I I i i 1 1 CAPITAL. PROJECTS FU1)W µ' Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Parkins Structure- This fund accounts for the construction of parking garages from proceeds of the Huntington Beach Civic Improvement Corporation Certificates of ,.� Participation. '- ' Redevelopment Agency- This fund accounts for acquisition and constructioni activity in the five project areas. Low-Income Housing- This fund accounts for acquisition and construction activity for low-income housing. The California Health and Safety Code requires that 20% of all tax increment reve^aQ received by the Redevelopment Agency be set aside in this fund for low-income housing development. Public Facilities Corporation- This fund accounts for major capital improvements made to the Library complex by the Huntington Beach Public Facilities Corporation. Parking .Authority- This fund accounts for capital improvements made to certain off- street beach parking facilities. i 1 �Av CITY OF HUMTINGTON BEACU CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET June 30, 1983 ' With comparative totals for June 30, 1987 (expre_sed in thousands) Parking Redevelopment .... Structure _ Agency ASSETS Cash and investments $ 12,072 $ 14,870 Cash frith fiscal agent - Accounts receivable - - Interest receivable 63 68 ; Land held for resale 4,854 TOTAL ASSETS ;► 12,135 $ 19,792 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 9 $ 78 Accrued salaries - 17 :.. Deposits - - Notes payable - 818 TOTAL LIABILITIES 9 913 FUND BALANCESs Reserved for land held for resale - 4,854 -- Reserved for continuing projects 12.126 14,025 TOTAL FUND BALANCES 12,126 18,879 TOTAL LIABILITIES AND FUND BALANCES $�_12,35 19,792 •-• y�l -80- SCHEDULE E-1 Low Public -- Income Facilities Parking Totals } Housing Corporation Authority _ 1988 1987 $ 3,709 $ - $ 205 $ 30,856 $ 15,035 - 139 - 139 84 24 - - 24 3 15 1 1 148 53 - - 49854 3,009 $ 3,748 140 206 0 36,021 $ 18,184 i I $ $ $ $ 87 $ 8 17 l.1 - I� - - 922 69 - - - 4,854 3,009 +' 3,748 140 206 30,245 15,106 3,748 140 206 35,090, 181115 3,748 $ 140 206 $ 36,021 18,184 I I I .,J "\%ti -81- CITY OF HUNTINGTON BEACH I CAPITAL PROJECTS FUNDS COMBINING STATEMEMT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES wt For the year ended June 30, 1988 With cc►mparative totals for June 30, 1987 (expressed in thousands) `- w Parking Redevelopment Structure Agency REVENUES: Property taxes $ $From use of money and property 984 476 TOTAL REVENUES 984 476 LXPENDITURESt Current: City Council - 52 ,r City Administrator - 298 City Treasurer - 2 ' City Attorney - 597 City Clerk - 117 Administrative Services - 431 Community Development - 994 Public Works - 370 -` Non-departmental - 15 Capital outlay 1,029 1,162 Deist Servicet r Interest - 1,723 TOTAL EXPENDITURES 1,029 5,761 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (45) (5,285) OMER FINANCING SOURCES (USES): Operating transfers in - - `r Advances from other funds - 18,134 .- Proceeds of long-term debt - - Operating transfers out - - Gain on sale of land - 727 _ Other - - TOTAL OTHER FINANCING SOURCES (USES) - 18,861 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES (45) 13,576 FUND BALANCES - BEGINNING OF YEAR 12,171 5,303 Prior period adjustment - - FUND BALANCE - BEGINNING OF YEAR, AS RESTATED 12,171 5,303 Residual equity transfers out - - FUND BALANCES - END OF YEAR $ 12,126 $ 181879 ' I -82- '.-. SCHEDULE E-2 , M . j Low Public ' Income Pacilicies Parking Totals i Housing Corporation Authority 1388 1987 $ 391 $ - $ - $ 391 $ 282 49 55 16 11580 1,192 440 55 16 1,971 1,474 I 52 47 - - 298 249 2 2 597 350 - - - 117 99 - - - 431 407 994 913 370 295 - - 15 16 2,191 1,838 1,723 - + - - - 6,790 4,216 440 55 16 (4,819) (2,742) 3 21974 - - 21,108 4,380 - - - - 14,017 (32) - - (32) (54) - - - 727 - - 371 2,942 - - 21,803 18,717 3,382 55 16 16,984 15,975 366 85 190 18,115 2,622 - - 1,277 366 85 190 18,115 3,899 - - (1,759) 3 7h8 $ 140 206 $ 35,099 18 115 i YL -83- i • i .w J r i w ..i. } ENTERPRISE PUl[D6 '^ Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the City is to recover the costs of providing the goods or services to the general public on a -, continuing basis be financed or recovered through user charges or where the City desires a periodic determination of net income. � I Water Utility, This accounts for the City's water service to residents and businesses. Meadowlark Golf Course- This fund accounts for the operations of a City-owned golf course which is leased to a private corporation which pays the City rent based on the operation's total revenues. Emerald Cove Housing- This fund is used to account for the operation of a senior -~ citizen apartment complex. i i f: L,' r i � I j CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS "^ COMBINING BALANCE SHEET June 30, 1968 With comparative totals for June 30, 1987 (expressed in thousands) Water Utility ASSETS CURRENT ASSETSs a Cash and term investments $ 4,667 Accounts receivable 470 Accrued interest receivable 24 Unbilled receivables 1,218 TOTAL CURRENT ASSETS 6,379 OTHER ASSETSs Cash with fiscal agent 765 ; Advances to other funds 1,289 TOTAL OTHER ASSETS 2,054 PLANT, PROPERTY AND EQUIPMENT (AT COST): Land 391 Buildings 971 Machinery and equipment 48,775 r 50,137 Leon accumulated depreciation (20,874) TOTAL PLANT, PROPERTY AND EQUIPMENT 29,263 TOTAL ASSETS _37,696 LIABILITIES AND FUND EQUITY CURRENT LIABILITIESs ' Accounts payable $ 776 .._ Accrued payroll 95 Accrued interest - Deposits 1,392 _ Current portion of long-term liabilities 231 ' TOTAL CURRENT LIABILITIES 2,494 LONG-TERM DEBTS Bonds payable 869 Note payable 220 '- Certificates of Participation - Compensated absences payable 119 Advances to other funds - r Less current portion (231) TOTAL LONG-TERM DEBT 977 TOTAL LIABILITIES 3,471 FUND EQUITY: Contributed capital 34,508 Retained earnings (deficit): Reserved for Debt Service - Unreserved (2$3) TOTAL FUND EQUITY 34,225 TOTAL LIABILITIES AND FUND EQUITY 37,696 -84- SCHEDULE F-1 i Headovlark Emerald '~ Golf Cove Totals Course Housing 1988 1987 $ 783 $ 1,072 $ 6,522 $ 6,071 - 2 472 480 5 11 40 32 I - 1,218 930 788 11085 8,252 7,513 683 1,448 1,485 - 1,289 172 683 2,737 11657 - 3,052 1,289 4,732 4,732 260 4,102 5,333 50201 359 - 49,134 46,5, 82 39671 5,391 59,199 56,515 (491) (238) (21,603) (20,270) -- 3,180 5,153 37,596 361245 3j968 61921 $ 48,585 $ 45,415 $ - $ 38 $ 814 $ 879 95 63 42 37 79 65 24 1,416 821 -', 29 260 258 71 99 2,664 2,106 869 869 19729 - 1,949 2,028 4,523 4,523 4,510 119 125 - 944 944 944 " (29) - _ (260) (258: 11700 '7 8,1414 8,218 1,771 5,_ 10,806 10,324 1,267 1,373 37,148 34,655 - - - 17 930 (18) 629 419 2,197 1,355 17,777 35,091 i $ 3,968 6,921 � 585 45,415 CITY OF HUNTIbGTON BEACH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, 'SES AND CHANGES IN RETAINED EAPNINu.. For the year ended .June 30, 1988 With comparative totals for year ended June 30, 1987 (expressed in thousands) Water ` Utilitx^ OPERATING REVENUES: Water sales $ 9,698 Golf course rentals - Apartment rentals Other revenues 4-49 " TOTAL OPERATING REVENUES 10,147 OPERATING EXPENSES: Water purchases 2,988 Administration 386 Engineering 827 Production 2,123 Maintenance 1,104 Water meters 595 Contribution to General Fund in lieu of taxes 1,390 Depreciation 1,247 TOTAL OPEPATING EXPENSES 10,660 OPERATING INCOME (LOSS) (513) NON-OPERATING REVENUES (EXPENSZS): Interest income 567 Interest expense (39) !" TOTAL NON-OPERATING REVENUES (EXPENSES) 528 NET INCOME (LOSS) 15 RETAINED EARNINGS (DEFICIT) - BEGINNING OF YEAR (298) RETAINED EARNINGS - END OF YEAR (283) Yee -86- w- SCHEDULE F-2 -� Meadowlark EmeraP Golf Cove Totals Course _ Housing _ 1988 1987 9,698 $ 8,978 305 - 305 230 • 606 606 368 449 234 305 606 11,058 1.01010 - • 2,988 2,586 • 195 581 536 - 827 571 - - - 29123 2,263 • 63 1,167 976 • - 595 502 1,390 19328 27 7" 1,353 1,323 27 337 11,024 10,081 278 269 34 (77) 58 146 771 534 (1231 (450) (612) (620) (304) 159 (8b) 213 (35) 193 (163) 717 17 436 599 930 (18) 629 $ 43C Lj�(1 -87- CITY OF HUNTINGTON BEACH I ENTERPRISE FUNDS i COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION For the year ended Jutie 30, 1988 With comparative totals for year ended June 30, 1987 � (expressed in thousands) Water Utilitv SOURCES OF WORKING CAPITALi Operations: Net in one (lass) $ 15 Loss on ... le of plant, property and equipment 12 Depreciaclon 1,247, We Ain& capital provided by operations 11274 Sale rt plant, property and equipment 5 Contributions received 2,463 Increase in certificates of participation - Reduction in restricted assets - Inerea3e in advance to other fund TOTAL SOURCES OF WORKING CAPITAL 3,742 USES OF WORKING CAPITALt Increase in plant, property and equipwint 2,566 Increase in restricted assets 34 Decrease in long-tern notes 51 Decrease in compensated absences sayable 6 Increase in advances from other funds lilts Contributions to park acquisition and development fund - TOTAL USES OF WORKING CAPITAL 3,795 :~r NET INCREASE (DECREASE) IN WORKING CAPITAL (53) l 91,111ENT6 OF NET INCREASE (DECREASO Ili WORKING CAPITALe Cash and term investments $ 206 Interest receivable 6 Accounts receivable (10) Unbilled receivables 269 Due from other funds - Accounts payable 77 Dus to other funds Accrued payroll (33) Interest payable 6 Deposits (593) J Current portion of long-term debt (1) NET INCREASE (DECREASE) IN WORKING CAPITAL $ (53) �l�l SCHEDULE P-3 Meadowlark Emerald Golf Cove Totals .� Course ,• Housing 1988 1987 ' $ 213 $ (35) $ 193 $ (164) - - 12 34 _w27 79 1353 1,324 240 44 1,558 1,194 i 5 33 2,496 1,257 --� - 13 13 13 70 70 21 944 243 , 160 4,142 _ 3 0 29 -' - 134 2,720 1,546 J - - 34 15 28 - 79 275 .. 6 22 1,118 172 - - - 832 j 28 134 3,957 2,862 J - , $ 212 26 $ 185 $ 567 211 $ 35 $ 452 $ 371 3 1 10 - ` 1 (9) 127 • 289 - - - - (24) • (11) 66 65 ill • (33) - • 6 (593) (66) (3) t17) $ 212 $ _ 26 185$ _ $ 567 I IIL.' i f { •89- 1 1 1 . j n , y PON IR?!!kltAL SERVICE FURN Internal service funds are used to account for the financins of Roods or services provided by one City department to others on a cost reimbursement basis. Self Insurance- This fund accounts for the City's self insurance activities (liability, health and workers compensation). Equipment Replacement- This fund accounts for the purchase and operation of certain j vehicles and equipment leased to City departments. '. -J r. J r 1 i I SCHEDULE G-1 •� CITY OF HUNTINGTON BEACH INTERNAL SLkVICZ FUNDS r. COMBINING BALANCE SHEET ' June 30, 1988 r` With comparative tutals for June 30, 1967 (expressed in thousands) Self Equipment Totals ASSETS Insurance Reelacement 1988 1987 CURRENT ASSETS Cash and term investments $ 6,509 $ 3,408 $ 9,917 $ 9,184 r" Accounts receivable - - - 16 Accrued interest receivable 34 18 52 35 r-, TOTAL CU,UMNT ASSETS 6,543 3,426 9,969 9,235 PROPERTY AND EQUIPMENT (AT CAST): Machinory and rquioMent - 21,267 219267 19,451 Less accumulated depreciation (10*128) _ (10,2,38) (8,840) TdCrAL PROPERTY AND EQUIPMMNT _- _ 11,139 11,139 10,611 TOTAL ASSETS 6 543 14 5655 Z1 L108 L121,846 .� r LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Accounts payable $ 37 $ 182 $ 219 $ 85 ; Accrued payroll 43 - 43 33 Current portion of long-term debt - 73 73 - TOTAL CURRENT LIABILITIES 80 255 335 118 LIABILITY FOR SELF-INSURANCE CLAIMSs Note payable - 409 409 - Workers compensation claims 3,977 3,977 3,519 Health claims 192 - 192 290 General liability 3,167 - 3$167 31358 Less current portion - (73) (73) - TOTAL LIABILITY FOR SELF-INSURANCE CLAIMS 7,336 336 7,672 7,167 TOTAL LIABILITIES 7,416 591 8,007 7,285 -- FUND EQUITY: Contributed capital - 12,214 12,214 11,793 Retained earnings (deficit) (873) 1,760 _ 897 768 TOTAL FUND EQUITY (DEFICIT) (873) 13,974 13,101 12,561 TOTAL LIABILITIES AND FUND EQUITY 6,543 S 14,565 S 21,108 19 846 -90- i _ 1 f CITY OF HUNTINGTON BEACH SCHEDULE G-2 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the year ended June 30, 1938 With comparative totals for June 30, 1987 (expressed in thousands) ! Self Equipment Totals _Insurance Replacement 1988 1987 OPERAT1NG REVENUES: Charges for service 6 896 1 581 8,477 8,425 OPERATING EXPENSES: Administration and general 1,773 547 2,320 1,301 Workers compensation claims 2,245 - 2,245 1,598 i Employee :sedicel claims 1,834 - 1,534 2,392 ; ri Liability claims 914 - 914 1,768 Depreciation � 1,862 1,862 1,613 TOTAL OPERATING ERFEHSES 6,766 2,409 9,175 88,672 ; 1 w OPERATING INCOME (LOBS) I30 �(828) � (698) (247) NON-OPERATING REVENUES: Interest income 560 257 �817 667 NET INC= (LASS) 690 (571) 119 420 RETAINED EARNINGS (DEFICIT) - BEGINNING OF YEAR 1 563) 2,331 768 �348 , RETAINED EARNINGS (DEFICIT) - END OF YEAR j (873) 1 760 887L 768 •J I 1 I L' li f I SCHEDULE G-3 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ' For the year ended June 30, 1988 With comparative totals for June 30, 1987 (expressed in thousands) Self Equipment Totals ' Insurance Replacement 1988 1987__ SOURCES OF WORKING CAPITALS Operationa: Net income (loss) $ 690 $ (571) $ 119 $ 419 Depreciation - 1,862 1,662 1,613 Loss on sale of plant property and equipment 80 80 58 Working capital provided f (used) by operations 690 1,371 29061 2,090 �„ I Increase in self-insurance claims payable 163 - 163 1,542 Sale of plant, property and equipment - 97 97 42 - Contributions received - 420 420 16,621 Increase in note payable 336 336 TOTAL SOURCES OF WORKING ,.- CAPITAL 353 2,224 3,077 20,295 USES OF WORKING CAPITALr Acquisition of plant, property "F and equipment .___. - 2,299 2._299 17,040 �-- NET INCREASE (DECREASE) IN WORKING CAPITAL 853 (75) 778 2 455 ELEMENTS OF INCREASE (DECREASE) r- IN WORKING CAPITAL: Cash and investments $ 909 $ (176) $ 733 $ 2,506 interest receivable 7 4 11 3 Accounts receivable (16) - (16) 1 Accounts payable (4) 97 93 (56) Accrued payroll (43) - (43) 1 NET INCREASE (DECREASE) IN WORKING CAPITAL 853 (75) $ 778 Z 455 -92- y I l/J f + l AGENCY RUMD Agency funds are used to accoum: for assets held by the City as an agent for f r„f individuala, private organizati,ins of other governments. i J Employee Deferred Comeensatio-j Fund- This fund accounts for the deposit of monies authorized by employees to b% withheld from salaries for payment at a later date. The City retains title to the funds until the employee withdraws the funds, Which may not be done until employment is terminated, or any later date. rn L f � le [ i i SCHEDULE H-1 CITY OF HUNTINGTON BEACH 1 AGENCY FUND ..� STATEMENT OF CHANCES IN ASSETS AND LIABILITIES For the year ended June 30, 1968 (expressed in thousands) . I July 1, June 30, 1987 Additions Deductions 1988 ASSRT8 s Cash with fiscal agent $ 8,408 $ 1,702 $ 844 $ 9,266 Eotes receivable, net of allowance for amounts uneollectible 531 1,798 470 1,859 Other assets 29 - - 29 TOTAL ASSETS 8,968 8 3,500 $ 1,314 _ 11,154 1 LIASILITISSz Notes payable $ 29 $ - $ 1 $ 28 limployee deferred compensation 8,939 26645 458 li�I26 TOTAL LIABILITIES 8,968 �i 2 L645 459 $ 11,154 i y q,� -93- I w I r 77 This account group accounts for plant, property and equipment that are nut recorded in -� proprietary funds. . j I< < I `i i bJ J �Q� e SCHEDULE I-1 CITY OF HUNTINGTON BEACH SCHEDULE OF GENERAL FIXED ASSETS ~" June 30, 1988 (expressed in thousands) �. f GENERAL FIXED ASSETSr Land $ 38,785 r' Buildings 25,158 improvements other than buildings 1,732 TOTAL GENERAL FIXED ASSETS 65,675 INVESTMENTS IN GENERAL FIXED ASSETS FROM: General Fund $ 10,491 Special Revenue Funds 13,364 t Capital Projects Funds 21,217 Doustions 20603 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 63,675 I r f `96- [l1 r SCHEDULE I-2 CITY OI' HUNTINGTON BEACH SCHEDULE OF GENERAL FIXED ASSETS BY '?UNCTION AND ACTIVITY June 30, 1988 f (expressed in thousands) t Land building Inprovesents Total i Tire $ - $ 3,357 $ - $ 3,357 Police 546 - 546 Coeawunity Services 32,037 8,887 1,732 42,636 ~� Public Works - 3,290 - 3,290 Non-departnental 64.748 9,078 - 15,826 1 38„.785 1. 25„,158 $ 1,732 $ 65,675 J I SCHEDULE I-7 CITY OF HUNTINGTON BEACH SCHEDULE OF CHANGES IN GENERAL FIXED ASSISTS BY FUNCTION AND ACTIVITY For the year ended June 30, 1988 r- (expressed in thousands) July 1. 1987 Additions Deletions Jung: 30, 1988 f" f Fire $ 3,357 $ - $ - $ 3,357 Police 546 - - 546 r- Community Services 41,775 1,492 611 42,656 Public Works 3,290 - 3,290 i- Non-departmental 15,826 - _ 15,826 Total General Fixed Assets d 64,794 , 1,492 $ 611 65� ,675 r.• r i._ i I -96- J 1 , I _I GEt1l CAL LONG-TERM MST ACCOUNT GRW This account group accounts for long-term debt that is not recorded in proprietary funds or trust funds. i I ' l� 1 SCR6DULE J-1 CITY OF HUNTINGTON BEACH SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT 1 For the: year ended June 30, 1988 ,..� (expressed in thousands) �i 1 -� Outstanding Outstanding July 10 June 30, 1987 Additions Retirements 1988 1970 Park Bonds $ 2,885 $ - $ 295 $ 2,590 Public Facilities Corporation Mortgage 7 Bonds payable 3,210 - 2I.0 3,000 Parking Authority Revenue Bonds 945 - lid 825 —• California Coastal 'I Conservancy note payable 425 - 17 408 I Civic Improvement Corporation •,� Certificates of Participation 20,000 - 170 19,830 Public Vinancing Authority Revenue Bonds - 26,775 26,775 "! Compensated absences 3,576 246 3,822 I _ Amounts due under owner - participation agreement 1,408 - 1,408 I� Advances from other funds 16,123 23,161 . 2,366 36,918 Totals $ 481572 y 50,182 3,178 $ 95,576 I .�1 I ..a -97-- _ _ 1 1 i I I I ii 1 I I I STATISTICAL SECTION l � I I I 1 - 1 l J I r .-v I ~I A table : 1 the ten largest property taxpayers was not presented as the information Was not readily attainable . 1 .+ e� t bA s i I I i CTTY OF HUNTINGTON BEACH ri GOVERNMENTAL FUND REVENUES BY SOURCE Last Ten Fiscal Years( in thousands) Fiscal Property Other Licenses and Fines and Year Taxes Taxes Permits Forfeitures w 1978-79 $6, 741 $19,574 $3 ,842 $1 ,005 i 1979-80 9.690 14 , 557 4 ,076 1 ,285 16 ,994 5 ,496 1 , 526 r 1980-81 11 . 7b1 1981-82 13 .646 19,050 3 ,003 1 ,516 1982-83 15 ,830 20 ,661 3 , 148 1 . 749 22 ,879 5 , 100 1 ,923 1983-84 16 ,935 I1984-85 17 ,638 25 ,923 5 ,963 2 ,094 1985-86 19,428 27 , 798 4 ,427 1 ,974 :T 1986-87 23 ,087 28,885 4 ,919 2,096 '- 1987-88 24 ,275 30 ,207 4, 348 2 ,338 Source : Administrative Services Department , City of Huntington Beach w. Note : Includes General , Special Revenue Capital Proj :cts and Debt Service Funds i r �J -98- J �J� 4 1Yshibit A i Use of Money From Other Charges for Other Total and property Asencies Current Svc . Revenue 4 ..� $2,007 $12 ,320 $951 $183 $46,623 i 2. 586 9, 294 1 , 159 315 42,962 i 4, 250 11 ,403 1 ,489 374 53 . 293 5 ,838 9. 109 1 , 316 529 54,007 I, 4 ,551 7,954 2,917 1 , 180 57 ,990 6, 177 9,937 2 ,009 1 ,053 66,013 ; I 5 ,896 12 ,888 2, 161 364 72,927 j 5 , 718 14, 143 2,350 736 76, 574 i .a 7 ,634 14 .422 2 , 799 456 84,298 8 , 365 15 ,492 3 ,208 1 ,410 89,643 `1 i i _i � -99- -� 50 I CITY or iLfifnN= Mal GDV13mmm FUND 1'3LPgADI'lL1RF.S BY FLU+MON ; Last 'lien Fiscal. Years (in Utumnds) rr i Fiscal City City city city City Administrative C wuri.ty Year Council Adub datrator Treasurer Attorney Cleric Services DMInp.,ent 1978-79 $37 $3,760 $1,353 $374 $107 $541 $1,412 -- 1979-M 48 1,941 362 350 1614 626 1,617 I9DJ41 81 403 1,028 435 143 1,682 1,645 1981-82 77 399 158 872 194 2,060 1,750 1962-P,3 98 498 264 629 165 2,140 1,712 190-84 111 480 141 730 163 2,362 2,319 •- )984-85 129 731 268 806 195 2,559 2,726 1985-6 135 948 288 897 203 2,949 2,715 IWA7 129 %9 283 913 252 3,088 3,248 1987-98 130 1,106 290 973 245 3,287 4,187 Sourm: Ad bi strative Services Deparbrent, City of fkM reton Beach Note: I:tcludes General, Special Fevenr.:e Capital Projects and Debt Service Funds -100- Exhibit B Comwdty Public inn Capital Debt "� Fine PbLice Services Ubdo Uepartmerrtal Outlay Service 'lbtal .� $5,658 $9,445 $3,789 $4,502 $4.688 $5,233 $505 $41,405 6,0Y. 10,879 2,654 5,442 5,645 9,628 504 46,42D -? 6,862 11,721 4,340 8,780 5,177 8.725 503 51,524 7,315 13,367 4,405 9,707 4,010 8,860 471 53,645 70i58 14,103 5,028 10,909 4,0558 9,639 469 57,552 .-, 8,569 15.601 5,070 12,528 3,741 8,621 1,830 62,267 i 9,494 17,123 5,287 13,652 4,867 7,874 1,8% 67,605 10,252 18,745 5,668 15,249 6,796 11,791 1,847 78,385 11,187 2D,519 6,09D 14,863 7,726 10,730 2,189 82,177 11,840 22,370 6,954 16,205 7,153 9,786 5,243 89,769 7 t� ` 1 r!� -101- t go$ i I A i 1 CITY OF HUNTINGTON BEACH 1 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years r• (expressed in thousands) ; 1 r SECURED TAXES Fiscal Total Total - Delinquency - Year Levy Collections Amount Percent r 1 1 1978-79 5 ,636 5 ,525 111 1 .97 1979-80 8,843 8 ,603 240 2.71 r t 1980-81 10 , 245 9 ,872 352 3 .44 1981-82 10 ,300 9 ,894 407 3 .95 l 1982-83 11 ,405 11 , 117 239 2 .53 i w 1985-84 11 ,403 11 ,665 430 3 . 77 1984-85 12,418 11 ,634 425 3 .42 1985-86 13 .608 12 ,781 452 3 .32 1986-87 15 ,089 14,448 572 3 .79 1987-88 16,055 1` ,419 5 , 800 3 . 12 Source- County of Orange Note- Delinquency does net necessarily equal the levy amount _. minus the Zollections since there are always collections of amounts levied in prior years. -- -102- �a�j • 1 LVh i hst C n UNSECURED TAXES f 1 , Total Total -- Delinquency- Levy `` Collectflnns Amount Percent s. 561 537 24 4.28 862 839 23 2.67 827 789 38 4.59 808 737 47 5 .82 I, 960 909 51 5 ,31 wJ 982 942 26 2.65 1 1 ,032 955 33 3 .20 i 1 , 130 1 ,060 40 3 .54 1 , 187 1 . 100 45 3 .75 1 , 250 1 , 180 46 3 .68 �J _J El -103- U J�� i CITY OF HUNTINGTON BEACH ASSESSED AND ACTUAL VALUE OF ALL TA'iAi3LE PROPERTY I Last Ten Fiscal Years (expressed in thousands) Fiscal Common Public Total Year Property Utilities Secured 1978-79 $718 , 267 $59,829 $778, 116 1979-80 872, 397 60, 454 932,851 1980-81 932, 146 79, 647 1 ,011 , 793 '.• 1981-82 4 ,608,703 322 , 527 4 .931 ,230 II 1982-83 5 , 171 , 182 330 ,030 5 , 501 , 212 1983-84 5 , 559, 792 362 , 186 5 ,921 ,977 1984-85 5 , 940,642 426 ,593 6, 367, 235 1985-86 6,519, 923 450, 742 6 ,970,665 ►-• 1986-87 7 ,019 ,854 475 ,467 7 ,495 ,321 1 1987-88 7 , 457 , 614 487, 793 7 .945 ,407 Source; Orange County Auditor-Controller Notes Assessed value approximates market value for `- years beginning in 1981-82. Prior to this Assessed value was approximately 25% of market value. Assessed valuation follows the guidelines of article 13-A of the California Constitution. --104- — I � EKhibit a {I iw I . Total Estimated Full Assessed Market Percent Unsecured Valuation Valuation Increase $53 ,667 $831 , 783 $3 ,327 , 132 (2.64) 61 , 547 994, 398 3 ,977,592 19.55 I — 62, 512 1 ,074, 305 4, 297 ,220 8.04 288,453 5, 219,683 5, 2B, 683 21 .47 374 ,692 5 ,875 , 904 5 ,875 ,904 12.57 370 .949 6,292 .926 6, 292,926 7. 10 466 ,571 6,833 ,806 6,833 ,806 8.60 7 441 , 125 7 ,411 , 790 7,411 , 790 8.46 I -, 504.940 8 ,000 ,261 8 ,000 ,261 7 ,94 436,502 8 ,381 ,909 8 ,381 ,909 4 .77 ,t i -- I Y.; I "' -105- i Exhibit E I PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS i LARGEST TAX RATE! AREA IN CITY Last Ten Fiscal Years I Metro. Basic Orange School Water Year Levy City County Districts Dist, Others Total 1978-79 1.00000 0.04930 0.00080 0.14987 0.02750 0.00428 1.23175 1979-80 1.00000 0.04930 0.00070 0.12572 0.02560 0.00393 1.20525 1980-81 1.00000 0.04635 0.00057 0.12430 0.02225 0.00325 1.19672 1981-82 1.00000 0.04635 0.00080 0.12810 0.01980 0.00270 1.19775 1982-83 1,00000 0.05756 0.00043 0.11656 0.01660 0.00237 1.19352 1983-84 1.00000 0.05682 0.00039 0.12096 0.02370 0.00210 1.20397 1984-85 1.00000 0.05630 0.00032 0.09962 0.01560 0.00177 1.17361 r I985-86 1.00000 O,h5565 0.00030 0.09329 0,01640 0.00161 1.16725 1986-87 1.00000 0.05529 0.00027 0.10677 0.01480 0.00142 1.17855 1987-88 1.00O00 0.05490 0.00022 0.09514 0.01120 0.00638 1.16784 Source- County of Orange Note- Rates are per $100 of Assessed Valuation • r -I06- 1 ' CITY OF HUNTINGTON BEACH .• GENERAL OBLIGATION BONDED DEBT RATIOS + Last Ten Fiscal Years ' r General Assessed Percent of Bonded Bonded Market Debt to Debt j Fiscal Debt Valuation Assessed Per Year (thousands) (in 1,000s) Valuation Population Capita 1978-79 $4,810 $3,327,132 0.14 167,409 $28.73 1979-80 4,590 3,977,592 L).12 172,200 26.66 ; 1980-81 4,360 4,297,220 0.10 173,393 25.15 1981-82 4,150 5,219,683 0.08 175,714 23.62 1982-83 3,930 5,875,904 0.07 178,706 21.99 �~ 1983-84 3,695 6,292,926 0.06 179,990 20.53 1984-85 3,425 6,833,806 0.05 161,000 18.92 1985-86 3,165 7,411,790 0.04 184,838 17.12 1986-87 2,885 8,000,261 0.04 186,757 15.45 1987-88 2,590 8,381,909 0.03 187,740 13.80 Source- Administrative Services Department, City of Huntington Beach -101- f Exhibit F 1 i ' Debt Service Debt Service- General Fund to Total (thousands) Expenditures General Fund Principal Interest Total (thousands) Expenditures 210 $292 $502 $32,446 1.5 —� 220 282 502 36,902 1.4 230 273 503 40,494 1.2 210 261 471 44,094 1.1 I� 220 248 468 48,747 1.0 235 236 471 53,177 0.9 -- 270 222 492 59,694 0.8 260 206 466 64,492 0.7 280 191 471 67,126 0.7 r� 295 175 470 71,232 0.7 r ' I i L3 EXhibih G r- - I � CITY OF HUNTINGTON BEACH COMPUTATION OF LEGAL DEBT MARGIN June 30, 1988 C' (in thousands) rl $8 000,261 ' Assessed Valuation 'I Debt Limit: 15% of Assessed Value 1,200,039 i Amount of Debt Applicable to Limit (General Obligation 1970 Park Bonds) $2,590 Less Net Assets in Debt Service Fund (1970 Park Bonds 130 Total amount of Debt Applicable to Limit Lesal Debt Margin 1'197,579 Source: Administrative Services Department, City of Huntington Beach -109- �. I � C.9 1 Exhibit 1i � c�a f i c:s CITY OF HUNTINGTON BEACH COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT ^' 1 June 30, 1988 1 fa{ 1987-88 Assessed Valuation: $8,381,909,365 (after deducting $174,654,025 in redevelopment tax allocation increment) Doi DIRECT AND OVERLAPPING BONDED DEBT Percent Debt at Applicable June 30, 1988 Orange County 7.883 $ 154,112 Orange County Building Authorities 7.883 8,566,388 0range County Flood Control District 7.883 690,726 Metropolitan Dater District 1.599 8,403,704 Municipal Water District of Orange County, 12.400 8,537,400 Water Facilities Corporation Orange County Sanitation Districts #1,2 and 5.253 6,146,010 3 Certificates of Participation Orange County Sanitation District #.2 11.168 67,454 Orange County Sanitation District 011 99.943 225,871 Coast Community College District Authority 30.138 6,291,307 Los Alamitos Unified School District 1.698 13,414 Huntington Beach Union High School District 70.196 1,544,312 -- Huntington Beach School District 96.760 1,458,559 Ocean View School District (Various Issues) 93.123 2,197,702 Fountain Valley School District 30.138 6,291,307 City of Huntington Beach 100.000 2,615,000 City of Huntington Beach Building authorities 100.000 23,705,000 TOTAL GROSS DIRECT .iND OVERLAPPING BONDED DEBT $ 71,899,629 Less MWDOC Water Facilities Corporation (100% self-supporting) (8,537,400) Legs Orange County Sanitation Dist. #3 (100% self-supporting) (67,454) TOTAL NET AND OVERLAPPING BONDED DEBT $ 71,899,629 I (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Includes certificates of participation to be sold. Ratios to Assessed Valuation: Share of Unauthorized and Unsold Bonds: Direct Debt ($27, 1)5,000) 0.31% Metropolitan Water District- $4,237,350 Total Grosc Debt 0.86' Fountain Valley School District-$1,506,065 Total Net Debt 0.76% Ocean View School District- $1,732,088 L � State School building Ald Repayable as of 6/30/88- $33,141 ,745 Source: California Municipal Statistics, I11c. -1 l0- i 1 f Fthil�it I CITY Or 111,117MM7 P001 ' t;1T1R REVL'l1@ a D C(MR1al. Last Ten E'iscal Years (Evresse-A in thumwds) (Emludirg Net Revenue - Wbt Service Pzquirenmits - Fiscal Tbtal Interest and Ava:Hable for Year Pp.vmjes Depreciation) Debt Service L'dwipal Interest Tbtal CL-mrc%-. •-� 1978-79 $5,540 $3,653 $1,887 $120 $92 $212 8.9 1979-0 6,083 3,643 2,443, 130 67 217 11.2 19w-.81 5.814 4,780 1,034 130 83 213 4.9 1981-82 6,558 5,286 1,272 140 79 219 5.8 1982-63 6,521 6,255 266 150 74 224 1.2 1983-Y# 7,035 6,658 377 150 69 219 1.7 19&"S 8,050 7,687 363 160 43 203 1.8 1%5-86 8,651 8,760 (109) 58 40 98 N/A 19%-87 9,162 8,476 656 184 34 218 3.1 1987-M 10,714 9,413 11301 0 30 30 43.4 Sourre, Adccdnistrative Services Department, City of Hm iMton Beach Note- The 1%3 Water revenue Bard trust indenture requires that the net revenue available for debt service be at least 1.25 timss tlx -.. anmil debt service requimm t. -111- 5"1 U Exhibit J CITY OF HUNTINGTON REACH �j D2610GRAPHIC STATISTICS City Population Percent Square Orange County as a Percent of Year Populatit;^Increase Miles Population County Yopoulation i 1910 815 - 3.57 34,436 2.4 . 1 1920 1,687 107.0 3.57 61 ,375 2.7 1930 3,690 118.7 3.57 118,647 3.1 1940 3,738 1.3 3.57 130,760 2.9 1950 5.158 38.0 4.72 216,224 2.4 1960 11,492 122.8 23.47 703,995 1.6 f f 1970 116,400 912.9 26.73 1,420,386 8.2 1980 172,200 47.9 27.20 1,931,570 8.9 1981 173,393 0.7 27.20 1,972,724 8.8 1982 175,714 1.3 27.20 1,993,831 8.8 _ 1983 178,706 1.7 27.20 2,036,390 8.8 J 1984 179,990 0.7 27.20 2,066,498 8.7 1985 1C1,015 0.6 27.20 2,074,326 8.7 4 1986 184,838 2.1 27.20 2,180,831 8.5 1987 186,757 1.0 27.20 2,193,614 8.5 1988 187,740 0.5 27.20 2,238,721 8.4 Sourcet Community Development Department, City of Huntington Beach I -112- w Exhibit x CITY OF HUNTINGTON BEACH "1 CONSTRUCTION ACTIVITY AND BANS: AND SAVINGS AND LOAN DEPOSITS Last Ten Fiscal Years f � it Estimated Bank Number� I Valuation and Savings of of New and Loan Fiscal Building Percent Construction Percent Deposits percent Year Permits Change (00015) Change in (000's) Change 1978-79 6,187 (10.8) $91,462 (39.1) $856,340 19.9 1979-80 4,457 (28.0) 91,289 (.2) 955,539 11.6 1980-81 4,012 (10.0) 108,794 19.2 1,045,345 9.4 1981-82 3,230 (19.5) 58,298 (46.4) 1,134,324 8.5 1982-83 2.539 (21.4) 52,458 (10.0) 1,388,634 22.4 � B1 1983-84 2,776 9.3 110,747 111.1 1,801,778 29.8 1984-65 3,163 13.9 142,336 28.5 2,033,763 12.9 �J 1985-86 3,173 0.3 133,579 (6.2) 2,310,482 13.6 1986-87 4,098 29.2 92,230 (31.0) 2,300,421 (.1) 1987-88 4,666 13 9 + � 177,297 92.2 rNote- Bank and Savings and Loan Deposits for 1987/88 were not availrble in time for this report. Source- Community Development Department, City of Huntington Beach and The Findley Reports an California Financial Institutions. I' '1 M. CW CITY OF HUNTINGTOII BEACH INSURANCE IN FORCF I June 30 , 1988 w• I Cal-Surance- Broker �. Watercraft Hull and Liability Watercraft Hull and Liability, Excess Excess Workers Compensation l I r � 1 I 1 � AIG- Broker + Helicopter and Hangar Helicopter and Liability r• Robert E. French -. Broker Medical Stop Loss Employees 'Travel Accident Policy � w- Robert F. Driver- Broker ` Boiler and Machinery Fidelity Bonds Fidelity Bonds i- Johnson & Higgins- Broker Fire, Ext . Cov. , Flood, Earthquake Fire , Ext . Cov. , Flood, Earthquake Fire, Ext . Cov. , Flood, Earthquake TOTAL Source: Administrative Services Department City of Huntington Beact. -11G� w Evjiibi i�- L 1, Annual Insurance Comp an Polic # Expires Premium .� v v . Albany insurance Company 8H10601 4/1/89 5,415 St. Paul Insurance Company 388FA6887 4/1"/89 7,425 Employer's Reinsurance Company 05059R 7/1/89 76,715 i U.S.A.I.G ALO-11987 4/l/89 3,800 (I U.S.A.I.G 400AC-22835 4/1/89 51,250 1 ! i - Ameri^an Insurance Company 19086 4/30/89 110,000 Proviient Life and Accident GTA1116 7/1/ff? 3,500 II Insurance Company I !I Kemper Group 3KNO-17455-01 4/1/89 10,350 Kemper Group BIN104900 9/8/88 1,885 !i The Hartford Ins. Group PEBBX6441 9/8/88 1,001 Insurance Co. of N. America HAUD1631975-2 6/6/89 12G,635 Allianz Insurance Co. IM 5027338 6/6/89 15,150 AssociAted Inter. Ins. Co. IM 303271 6/6/89 7,675 �I 415 044 -115- ' ICI i Exit it M CITY OF HUNTINGTON BFACI1 �- MISCELLANEOUS STATISTICS June 30, 1988 �• f Year of incorporation 1909 Form of Government Charter City- Council, City Administrator Area 27.2 Square Mires Population 187,740 Miles of Streets 370 Number of Street Lights 14,350 Fire Protection: ,lumber of Stations 7 r" Humber of Firefighters 133 Police Protection: Number of Stations 1 Numbcr of Sworn Police Officers 211 Municipal Water Department Number of Customers 46,360 - Average Daily Consumption 33.0 Million Gallons Miles of Water Mains 480 Public Works: Sanitary Sewers 270 Miles Storm Sewers 31 Miles ` dumber of Street Trees 36,000 Recreation and Culturc Number of Parks 57 �- Park Acreage Developed 555 Miles of Beach 3.4 Annual Beach Visitors 6,000,000 Number of Libraries 4 Library of Volumes 1,900,000 7 Full-Time Employees 1,038 Source: Administrative Services Department, City of Huntington Beach •-116- w .h I � i 1 � COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF HUNTINGTON BEACH, CALIFORNIA 1 1 FISCAL YEAR ENDED JUNE 30, 1989 I f I i PREPARED BY ADMINISTRATIVE SERVICES DEPARTMENT -; CITY OF HUNTINGTON BEACH J �J j CITY OF HLY11MGM4 MACH, CALII1QFaJIA OCIdPCtfliEtLiM AIUMAL FINANCIAL, PEPCBT Fiscal year ended June 30, 1989 Table of Contents IUD-IQp(J Y SDC'ITC�1 ' I i p !� Table of Cmtents Letter of Transmittal iv - xiv �I Elected and kbdnistrative officials xv Organizational Chart xvi Financial Reporting Award xvii - xviii I InJopendent A:r3i.toris' Report 1 General Purpose Financial Statements: _ C Imbined Balance sheet - All Fund Typal and A0=21t Groups A-1 2 - 3 O m bind Statmw* of Revenues, itures and C angm in -Amd Balances - All Gavex zental Fund Types A-2 4 - 5 Odabined State nent, of Revenues, Mures and amVes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types A-3 6 - 8 Ccubinod Statement of Revenues, Expenses and Changes in Retained Ean ings - All P=prietary Fund Types A-4 9 C IM biped State=tt of Changes in Firarri.al Position - All Proprietary Fund Types A-5 10 Notes to Fi nancit. Staterents 11 - 71 Financial Stateswz is of Individual Funds and Account (;xmips: General FuM: ' atiV Ccnpax- a Balance Sheet B-1 72 Statement of Revenues, Expenditures and . , Changes in Fund Balanoe - Budget and Actu31 B--2 73 I -i- � Z5' MA Page: Sc edu. a thrmYaer Special. Revenue Fund:: Combining Balarm Sheet C-•1 74 - 75 •- Owbinirg Statement of Revenues, Expen ibares and Changes in Fund Balances C-2 76 - 77 ctabinirg Statement of Revenues, Expenditut-es W. and Changes in Fund Balances Budget and Actual C-3 78 - 82 Debt Service Mids: C cirbining Balaroe Sheet D-1 83 - 84 aambinirg Statement of Revenues, F-VwAitures and changes in Fund Balances D-2 85 - 86 Owbining Statement of Revenues, Expenditurm and C mvjes in Fund Balances - Budget and Acic al. D-3 87 - 90 Capital Projects Funds: �- Ccmbining Balarxx Sheet E-1 91 - 92 Owbining Statemnt of Revenues, E*endibares and Changes in Fund Balances E 2 93 - 94 -- Enterprise R xis: Omb3ning Balanoe Street F-1 95 - 96 Cwbining Statement of Revenues, Exrwwes w-d Changes in Retained Earnings F-2 97 - 98 Combining Statement of Mz g in Fi rk-drrial Position F-3 99 - 100 Internal service Funds: Combining Balanae Sheet G-1 101 - 102 0=61ning statm ent of Revernties, E4mnres and Comb Statement of Changes in Firancial Position G-3 1.04 Agency Fund' CXnnbtning•Statement of Changes in 1swts and Liabilities H-1 105 - 106 General Fined Assets Ac=mt Group: Schedule of General Fixed assets I-1 107 SchixWe of Gwvxal Fixed. Assets by Function and A tivity 1:-2 108 Schedule of Charges in Fixed Assets by Relation and Activity I--3 109 General long-Terra Debt Acouunt GroW: Schedule of Changes in General Tong-Term Debt 17-1 110 -ii- i t� I � I i P I SI�ITIS�CrJ� SF�C'I'xC�N I Page Gw�mta1 F+sre Types - Revalm by S=-D-- - Last Ten Fiscal Years A Ill - 112 Governmental Fund Types - Egmn ditcues by Function - Last Ten Fiscal Years B 113 - 214 Ptgvrty Tax 1wies and Collectiam - I Last Ten Fiscal Years C 115 - 116 Assessed and AcU;al Value of All Table Property D 117 - 118 Property Tax Rates - All Overlapping Gwarnments -- Last Ten Fiscal Yeats E 119 I Genera]. Bonded Debt~ Ratios - Last Ten Fiscal Years F 120 - 121 C Multation of Legal Deist Margin G 122 -- Cetputatian of Dirwt and Overlapping Bonded Debt H 123 Water R,evom Bond Cow---age - La t Text Fiscal Years I 124 Denxx�rapixiC Statistics J 125 Const;ructiar: Activity and B.snk and Savings arLd I Loan Deposits - Last Ten Fiscal Years K 126 Insurw= in Fore L 127 - 128 ( _ Miscellwxxxm statistics M 129 t w I I J -' -fir- CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 December 8, 1989 The Honorable Mayor and City Counciltrw...mbers City of Huntington Beach, California ' Mayor and Councilmemmbcrs: �. We are pleased to sulmiL to you the Comprehensive Annual Financial Report for the City of ItuntingLon Beach for the fiscal year ending June 30, 1989. We believe that the data is an accurate summary of the financial position and results of operations of our City to you. The Administrative Services Department is responsible for the accuracy of the information presented. We have included all necessary disclosures to enhance your understanding of the financial condition of the City. The financial statements are prepared in accordance with the standards of the Government Accounting standards Board and its predecessor, the National Council on Governmental Ao hunting and includes the report of our independent auditors, Diehl, Evans and Company. The report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal, the City's organizational char: and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund aril account group financial statements and schedules as well as the auditors report on the financial statements. The statistical section includes selected financial and dm ographic information, generally presented on a multi-year basis, The Single Audit Act of 1984 requires that the City's grant programs which utilize Federal funds, whether directly or passed through from state or county agencies be subjected to special audit requirements. These include tests of conpliame with Federal laws and regulations and an organization-wide examination of financial operations. The results of this expanded audit of grant activity are included under a separate cover. Copies of the report are available from this office. ItuntingLon Beach is a full-service City including public safety, parks and recreation, beach services, library services, planning and zoning, public works and related administration. The City also provides water services to residents and businesses. This report includes the financial activity of certain separate legal entities whose activities are significantly controlled by and/or related to the City. These entities are, tl:e RedevelgMent Agency of the City of Huntington Beach (Redevelopment Agency), the Huntington Beach Public Facilities Corporation (Public Facilities Corporation), the Huntington Beach Public Financing Aut.'hority (Public Financing Authority), the Huntington Beach Civic Improvement Corporation (Civic Improvanent Corporation) and the Parking Authority of the City of Huntington Beach (Parking Authority) . �,ZQ -iv- GI 'I Component unit financial reports have been prepared for the Public CacilitieG Corporation, the Redevelopment Agency and the Public rinancing Authority. These reports show the financial activities of these entities on a "stand-alone" basis. Copies of these reports are available from this office. FXCMIC COMMON AND OUTLOOK Huntington Beach is located approximately 35 miles southeast of Los Angeles in Orange County. The economy of Orange County has had strong, sustained growth for the past seven years. Residents of Huntington Beach in general have a higher-than- average median incase. The unemployment rate of the City is below four percent. The median price of a single-family detached dwelling in the City approximates $280,000, over the years the City has developed diverse revenue sources including property tax, sales tax, utility tax and oil-related revenues which along with conservative fiscal p:A icies should lessen the impact of any local or rational recession. Ebr the Year During the year the renaissance of the downtown area began! Several owner participation and disposition and development agreements were signed during the year and construction began. Below are some of the more significant ones: . The Waterfront Hilton, a first-class hotel which will house restaurants, meeting roans, tennis courts and all the amenities necessary to attract people to Huntington Beach. The hotel will be one of few in California which is directly on the Facific Orean. The hotel is the first of four to be built as a result of an agreement with the Robert Mayer Corporation. The development wi'i also include condominiums. The first- hotel is scheduled to open in the summer of 1990. . The lluntingLon Bayshores, a 159 unit condominium development worth approximately $30 million developed by Newcomb Development Cerny which is complete and all the units are now sold. The Townsquare development by Mola Development Corporation which includes 16 t�homps and 73 condominiums. The Redevelopwnt Agency contributed land valued at $2.5 million to the project and will receive payment for the land through sale of the cosidominium units. Minimum payment to the Agency is $2.5 million. The project is expected to be completed in May, 1990. . The Pier Colony development by California Resorts, Inc. which will include a six- plex movie theatre, restaurants, office space and residential units. The total value of the development is approximately $45 million. The project began in Spring, 1989 and is expected to be completed by summer of 1990. The City initiated a refuse collection fee during the year which helped ease the burden of increased dumping fees charged by the County. I I Ii i c r' i For the F'ut_um- Huntington Beach's future is one of economic_ promise arx1 vitality. The City's coastal location provides unique challenges in developing an ideal mix of tourism, light industry, residential and comnercial development. This will require the efforts not only of local government but also of local businesses and citizenry groups. -- The Redevelopvent Agency will play a vital role in the City's econcunic future. Much of the focus of the Agency's efforts will be on the downtown area or Fain/Pier project area. The economic potential of this area for the local business camunity is substantial. During the year construction began on many exciting residential and commercial projects in the downtown area. The City Council is firmly committed to rebuilding the landmark pier. During the year fundraising continued and plans for the architectural design of the pier were agreed upon. The City has already gained positive results from Redevelopment efforts in the Talbert/Beach, Oakview and Huntington Center project areas. Article 13(b) of the California constitution (The Gann Lilnit) will have a profound effect on many local governments in California. The Gann Limit allows the City's expcnditures from "proct,eds of taxes" to grow only at the rate of inflation and population gro %&h. Huntington Beach is growing closer to its Gann Limit and if in the next several years it is exceeded, thry City will have to decide whether to rebate Ironies to taxpayers or to hold an Election which would allow the City to exceed its Gann Limit. LTaWIC]LAL I1KE'C MTICN The City's financial statements are prepared on the modified accrual basis for all governmental fund types except for the financial statements of the proprietary fund types which are prepared on the accrual basis. The City's system of internal contr.)l has been carefully designed to protect City assats while ensuring that the cost of a particular control does not exceed its expected benefits. I Ciudjetipq Controls The City Council adopts the annual budget and may amend or revise the budget at any tithe. Budgetary control is maintained at the departmental level. A department head, with the Finance Director's approval can transfer funds within like object categories of the same departlmcnt. The City Administrator can transfer funds from one object category to another without increasing the total Ixxlget of a department. The City Administrator must approve any changes to capital outlay requests. Any increases to a total departmental budget mist be approved by the City Council. The City utilizes an encumbrance system as a management control technigLu:. Encumbrances represent orders for goods or services unfilled or services not yet performed. At year end these are reported as reservations of fund balance in governmental fund types. These outstanding encumbrances are then re-appropriated in the new fiscal year. -vi- ww +l 1 M � The Accounting Division of the Administrative Services Department is responsible for maintaining the Ci,ty's financial information and for preparing this report. Financial & General governmental functions include the operations of the General, Special Revenue, Debt :service and Capital Projects runds. Below is an analysis (in thousands) of general governmental revenues with an explanation of significant i fluctuations: �I i Increase (Decrease) Percent from 1987/88 Amount of Total Amount Percent Property Taxes $26,970 24.5 $2,695 11.1 Other Taxes 30,736 27.9 529 1.0 Licenses and Periniis 5,773 5.2 1,425 32.8 Fines and rorfeitures 2,458 2.2 120 5.1 from Use of Money and Property 3.3,884 12.6 5,519 66.0 •- From Other Agencies 21,721 19.7 6,229 40.2 Charges for Current Service 5,886 5.3 2,678 83.5 Other 2,731 2.6 1,321 93.7 Total $110,159 100.0 $2Q,516 22.9 Property taxes increased due to the rapid increase in property values; in orange � County between 1987 and 1989 and new construction. There were a large number of property transactions during this period which under the guidelines of Article 13-A of the California constitution caused increased assessed valuation. Increased redevelufxnent Uix increment also caused part of the increase. Licenses and permits increased due to new construction. Revenue from the use of money and property increased because of larger cash balances dua to new bond issues done in June of 1988, and May of 1989 and slightly higher interest rates. Also during the year, debt was repaid from the Redevelopment Agency to the City with over $2 million of accrued interest. Revenue from other agencies increased due to a large number of capital projects which were partly financed by other governmental agencies. Charges for current services increased due to the itmplementation of a trash fee in September, 1988. Other revenue decreased because there were sales of surplus City property in fiscal year 1987/88 and there was no comparable sale this year and due - to rnntributions3 from, property owners for the Reservoir Hill Assessment District bonds. Below is an analysis tin thousands? of general governmental expenditures with an explanation of significant fluctuations: 531 -vii- Increase (Decrease) ' Percent from 1987/88 Amount _ of Total Amount Percent City Coln%cil $ 156 .1 $ 26 20.0 � City Administrator 1,304 1.0 198 17.9 i City Treasurer 322 .2 32 11.0 City Attorney 1,042 .8 69 7.1 City Clerk 293 .2 48 19.6 AriTdnistrative Services 3,409 2.5 122 3.7 Econotnic and Cczm mity D-avelopment 4,393 3.2 206 4.9 sire 12,722 9.3 882 7.4 Police 23,565 17.2 11195 5.3 C.amuzni.ty Services 7,595 5.5 641 9.2 Public Wbrlcs 16,893 12.3 688 4.2 Non-Departmental 7,088 5.2 (65) (A) { capital Outlay 43,289 31.5 33,503 342.4 Debt service 15,177 11.1 9,934 189.5 Total 13?i248 100.0 47,479 a2.9 City Cryancil expense, increased clue to the increased expense allowances adopted during the year. Administration expenditures increased clue to the effects of reorganizatior. and higher temporary salaries for the cable television operation. -- Expenditures for the City Clerk increased clue to contractual services relating to the November, 1.988 election. Expenditures for the City Treasurer to increased due to salaries and printing costs for new forms. Community Services expenditures increased due to higher temporary salaries and beach maintenance costs. Capital j outlay exp--naitures increased due to large property acquisitions in the Main/Pier project area. Debt service expenditures increased clue to the requirements of the Public rinancing Authority's ravenue bonds and the repayment of debt from the Agency to the city- fury) Fkeitries- The City's total fund equities for governmental funds increased 30.2' and for proprietary funds increased 15.1% as shown in the table below (expressed in thousands): II' . . Total Total Percent Fiquity Dquity Increase Governmental rands 1988/89 1987/88 (Decrease) General $29,543 $22,349 32.2 Special Revenue 19,621. 14,848 32.1 Debt Service 39,146 32,875 3.9 Capital Projects 53,736 35,099 53.1 Total 13S 7,046 IIPL171 30.3 ProprietAU rbMs Internal Service $14,062 $12,561 11.9 Enterprise 40,640 35,091 15.8 i Total 5S 4,702 4$ 7,652 14.8 1 { r �-)1 2 -viii- The total fund equity is classified as follows (expressed in thousands): Total Total Percent Equity Equity Increase Governatntal Ebnds 1988/89 1987/88 Decrease) Reserved $1'9,976 —- $88,415 35.7 Unreserved/Designated 4,036 6,469 (37.6) Unreserved/Undesignated 13,034 10,281. 26.7 Total 1:5 7,046 $1Q511�1 30.3 PE2prietaEt rands Retained Earnings $ 4,462 1,516 194.8 Contrilxited Capital 504240 49,362 1.8 Tot:,l 5S 4i702 5S 0,878 7.5 The increases in governmental and proprietary fund equity show the general financial health of the City. The increases in General Fund equity is largely due to increases in amounts reserved for future, specific: long-term projects. The increases in Special Revenue rued equity its due to revenue received from other Wvernmental Agencies for projects to be completed in the future. The increases in 03pital Projects fluid Equity is due to advances from the City for specific future projects and land purchases. The increase in net income for Internal Service Cluxis is due to reduced liability and workers coopensation expenditures. The increaser; in Enterprise eland equity and retained earnings is due to t1z Water Fund's net income of $2,191,1'',2. E wwwieti a 0�--Ieations The City operateR three enterprise and two internal service funds. Enterprise funds include the Water Utility Fund, the Meadowlark Golf Course E'und and the Emerald Cove Housing fund and are supported through unar charges to the public. The internal service funds include the Self-Insurance Fund and the Equipment Replacement Eland and F are supported by charges to user departments within the City. Shown below is a table cormrparing the performance of the City's enterprise funds to — the prior year (dollar amounts expressed in tlxausands). I !Ieadowlark Eherald Water Utility Golf Course Cove housing 1988/89 1987/88 1988/89 1987/88 1988/39 1987/88 Operating $13,483 $10,147 $283 $305 $607 $6V Revenues Operating $1,442 $(513) $256 $278 $248 $251 1 �q incare (Loss) j Net Income (Loss) $2,191 $15 $221 $213 $13 $(35) Income Available 7,222 1,301 342 363 $462 $494 for Debt Service Debt Service, Hoods 31 39 121 123 $449 $450 and Notes ^� Debt Service 71.7 33.3 2.8 3.0 1.0 1.1 i Coverage A wate:- rate increase during the year caused the increase in net income for the Water rued. All other changes were due to rr3rmal conditions. Shown below ir, a table comparing the performance of the City's internal service funds to the prior year (expressed in thousands): Equipment Self-Insurance Replacement 1988/89 1987/88 198B/39 -- 1987/68 Operating Revenues $7,056 $6,896 $1,780 $1,581 Operating Income 812 130 (1,707) (828) Net Incom 1,749 690 (1,228) (571) The increase in the net loss for the Equipment Replacement Lund is due to increased depreciation charges (ran-cash) for the City's replacement equipment. The increase in the net irKum* for the Self-Insurance Fund is due to reduced claims expense. Paesmion Obligatim s I The City is a participant in the California Public Employee's Retirement System i (PERS). PERS sets rates that the City uses to make contributions on t-ehw-slf of all permnent eMloyees and temporary employees who have worked in exce-3s of 1000 hours during the year. At June 30, 1988, which is the most recent information available, the City's total future pension obligation for all current and retired mployees was � 1 �3� -x- $126,707,000 and assets available for these obligations was $120,609,000 leaving an unfurrled pension benefit. obligation cf $6,178,000. This will be funded by future contributions to PM9. The City also maintains a supplemental benefits plan. The City has not set aside funds to pay the plan's unfunded liability of $7,071,000. Adequate funding of this supplemental plan will be addressed in the next few years. v rumb ^ 'Total assets and liabilities of the City's agency funds increased by $3,054,687, or 27.3� to $14,209,157. This is due to increased c-Mlopee participation in the City's section 457 deferred cagxnsation plan and the Retiree Health insurance rued which began during the year. Debt Administration r' Delow is a am-amry of the City's outstanding long-term debt at .Tune 30, 1988 (expressed in thousands): Amount Description Outstanding General obligation Bonds 1970 Park Darxts $2,280 Special Assessment Bonds Reservoir Hill Bonds 1,654 _. Revenue Bonds 1963 Water Bonds 703 Parking Authority Dcnds 700 Public financing Authority Bonds (Bede ,eloEmnt Agency) 26,510 Certificates of Participation Redevelopment Agency- Emerald Cove Housing 4,536 Civic Irnprovenennt Corporation 19,610 Public financing Authority 51510 Leasehold Mortgage Bonds Public racilities Corporation- 2nd Issue 2,770 i Notes Payable Meadowlark Golf course 1,700 San Joaclui.n Reservoir 166 County of Orange 336 Mortgages 2,675 i i -xi.- .yr3, li 1 01.her Ccapensated Absences 4,435 Redevelop want Agency Debt 83,684 Self-Insurance Claims 7,422 Amounts Due Under Owner Participation 3,588 and P.isYpnsition and Develoimient Agreements i Total 16$ 8,679 hJoody's Investor's Service rates certain obligations as to their safety as an investment. Below are the ratings of certain City obligations: 1970 Park Bonds PA Civic Inprovwment Corporation Certificatea Al of Participation Public Facilities Corporation Leasehold Mortgage Al Bonds Parking Authority Revenue Bondn Al The City's legal debt limitation for general obU ation bonds is 15% of the total of _ assessed valuation in the City. At June 30, 1989 the City's general obligation debt was $1,284,950,000 less than its legal debt limitation. Further .information on the City's long-term indebtedness is included in notes 10 and _ 11 to the general purrasa financial s3tatemnts. Cash NMs 2g� The City Treasurer is respon3ible for investing available cash in allowable instruments. These include insured or collateralized certificates of deposit, _ certain government securities, five year or less ccomercial paper rated A or better and the State Treasurer's Local Agency Investment ftu4. The cash managem.nt system of the City is designed to monitor and forecast x�:venues and expenditures to ensure the investment of monies tn the fulleLt extent po::sible. The criteria for selecting -- iw.,eabnents are, in order or priority, (1) safety, (2) liquidity, (3) yield. Further information on the City's investments are detailed in note 3 to the general " purpose financial statements. The average total of non-restricted cash and investments was $79,818,723 which ;Melded interest of $6,745,466 for a return of 8.33%. j The California Government Code requires the CityTreasurer to r prepare an annual j statanent of investment policy exd monthly report containing specific information � regarding the City'n invesstzx!nt policy. The City Treasurer has complied with this law. Further :information on the City's investment in detailed in note 3 of the financial satates»ents. � I v I The City is self-insured for liability, workers compensation and employee health claims. In October, 1988, the City entered into a joint-powers arrangement with ' five other local cities which will provide coverage for liability claims in excels of one-million dollars. This will reduce the City's exposure from large liability claims. At year-end, an estimate was made of the total cash that will be eventually paid out by the City due to claims made through June 30, 1989. The City has set aside sufficient cash to fund all outstanding liability, workers c wt)ensation and employee health insurance claims outstarxiing as of ,Tune 30, 1989 w OTC{ Single Audit In accordarr�e with the Single Audit Act of 1984, the City's grant programs which utilize Federal funde, either directly or Passed through frun state or county agencies, have been. subjected to audit requirements of the Office of Management and -- Budget. This included tests of compliance with Federal laws arid regulations and an oi3anization-wide ercmination of fin3nci.al operations. The *esult.s of this expanded audit of grant activity are included under separate cover. Copies of the report are available from this office. Fim-mial Re 6difiratea The City has prepared an easily readable and efficiently organized Comprehensive Annual Financial Report. 'III City's report for the fiscal year ending June 30, 1980 has been given .recognition from the Goverricent Finance officer's Association (GI.M.) - and tine California Society of Municipal Finance officers (CW-D). The GFIOA awarded the City a Certificate of Achie;ement for Exzellence in Financial Reporting which is the highest form of recognition for financial reporting that the GEM awaiis. The certificate is valid for one year only and is awarded only to cities whose reports► o:)n:orm substantially with high standards of public financial reporting. The C%ff-D awarded the City a Certificate of Award for Outstanding rinancial Reporting. This is also the highest form of award given by the CW0. We believe that this year's report continues to conform to the recuirerients of both award programs and we are submitting it to both organizations to determine its eligibility for another award. The City received similar recognition for itekinual Budget for 1987/88 from GLOA. Wee are one of very few cities to receive recognition for both our Annual Budget and Comprehensive Annual Financial mTurt. 0 -xiii- i i 1 f j he wish to thank the City Council ajA the various City departments for condwting the fiscal affairs of Huntington Beach in a responsible and progressive manner. We would also like to thank the mmbers of the Accounting Division, especially Robert Sedlak and Annabelle Richards, Principal Accountants for their work in the preparation of this report. DAN T. VILLkLI.A Direr r f Finance ROBERT J. 1, 'Z / Deputy City Administrator/ Administrative Services Department <"�CL -xiv- CITY OF HUNTINGTON BEACH PRINCIPAL CITY OFFICIALS CITY COUNCIL Wes Bannister Mayor Thomas Mays Mayor Pro-Tern John Erskine Councilperson 'Peter Green Councilperson Don Mac Allister Councilperson Jim Silva Councilperson Grace 11inchell Councilperson OTHER ELECTED OFFICIALS Donald L. Watson City Treasurer Gail Hutton City Attorney Connie Brockway City Clerk i ADMINISTRATIVE OFFICIALS i Paul Cook City Administrator Robert J. Frans Deputy City Administrator Douglas LaBelle Deputy City Administrator James Palin Deputy City Administrator Lou Sandoval Public works Director Melvin Bowman Community Services D:*.rector Raymond Picard Fire Chief Ron Lowenberg Police Chief Mike Adams Director of Community Development Dan T. Villella Director of Finance {' PEOPLE CITY OF HUNTlfliGTON BEACH crrYCOUNCIL C1TY i ADMINISTRATOR JIJ i CITY CITY CITY H TIII%ASttltlilt A'i'I'llitNl 1' [:LIi1tK UNTL2GTOr:Y1J1CH ELONOMIC CO.MUNIT1' ADMINISTRATIVE COMMUNITY POLICE. PUBLIC WORKS DEVELOPMENT DEVE1.01'6EEf�T SERVICES SERVIM I M jam++ N' t uNIF►Irt,l FIRE ECONOMIC ; !tri':sl[ln i'IIEI'E:YTtON t.Nlr.114GliR1NG DEVELOP. tl'lNInc FINANCE. L!!ln.tRt' PUBLIC HECRE.JLTION a ADMIN. H � INFORMATION INFORMATION HUMAN t31'liltAT(ONS T:,t7lslt 1fllfl.!)(1[; Sl'�"[lst15 IIIYISIUN /VIDEO NFsuCB[:Fti JN%'!%rljATI0N EMERGENCY REDEV./ 1 ANDSCAI'ti 11OUSINC PLRSOAA(:L BEACH'l.^.itilON SEnVlCFG ItlsAl. 1:1'I:l'1 HAI. l:F.Itt WENTHIN. AlA1N'1'kNhN1:3� t'llllPli::1':' 11t'1� titl'ItilUn 1: MMIINIt:AT1UNS INSURANCE It ORGANIZATIONAL CHART- ITEM£}ITS .I 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 ' June 30, 1988 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance officers Association of the United States and Canada to government units and public employea retirement systems whose comprehensive annual financial reports (CAFR's)achieve the highest standards in government accounting and financial reporting. am Q M President >�SLJIL�. ��iw`�4 R07 Emcutive Director CALIFORNIA SOCIETY OF MUNICIPAL FINANCE '6FFI-dERS' DEDICATED TO THE PROFESSIONAL ADVANCEMENT OF MUNICIPAL F114ANCE ADMINISTRATION tilt s c Cate 0/A ward FOR OUTSTANDING FINANCIAL REPORTING PRESENTED TO THE ciru untie ronBeach This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared for the fiscal year 1981/196S - t Cteafr,Prolessionel Standards Commlttae r E' la t I l FINATiCIAL SECTION f � DIEHL.,F-VANS &COMPANY' Or11ER OFFICES AT: CEAMEDMSLILIC ACCOUNTAWS 2965 ROOSEVELT ST. CARISFAU.CA 92008-2389 A PAI/M#A%MfrIM'l l'WdC A(rM*IAM(v rimmMAr"s 16191 7i9.234) 18401 VON KARMAN.SUITE 200 120 WFST WOODWARD A.M. IRVINE • CALIFORNIA 92715.1542 �r 14 F.sroNUn3n.CA92n25.9-M PHONE 11141111,7700 r 19R9 1619►7411141 FAX(714) 757.2707 .r INDEFENDEW WDIM S' MEM I 1 i city council City of Huntington Beach Huntington Bead, California We have audited the general purpose financial statements of the City of -. Hhrhtington Beach, California as of and for the year ended June 30, 1989, as listed in the table of contents. These financial statements are the ' responsibility of the City's management. Our responsibility is to express an opinion on these financial statements bated on our audit. We conducted our audit in accordance with generally accepted auditing stmianls. Those srz*Eb*ds require that we plan and perfa m the audit to obtain reasonable ��assurance about. xWwar the general purpose financial statements are free of material miwtatzwnt. An audit includes examining, on a test basis, evidence � supporting the anounts and disclosures in the financial statements. An audit also includes assessing the aoaounting principles used and significant estimates mace by managatient, as well as evaluatircj the overall general purpose financial , statement presentation. W.3 believe that c= audit provides a reasonable basis for our opinion. In out- opinion, tha general purpose financial statements referred to above present fairly, in all material respects, the financial position of the city of Huntington Beach as of June 30, 1989, aWl the results of its operations and the changes in financial position of its proprietary fund types for the year then eaAed in conformity with q zerally accrued accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The financial statements of the _ individual funds and account groups listed in the table of contents are gxesentod for purposes of additional analysis and are not a required part of the -- general purpose financial statements of the City of Huntington Beach. The information has been subjected to the auditing prccedures applied in the audit of trio general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical informatiah listed in the table of contents is not a required part of the basic financial statements, and we did not audit or apply lindtad pr=dtxes to such information and do not express any assurance on such information. i -1- _. i CITY OF MJNI'l21G M BEPCH CCPU31NED BUMCM Sir - AIL RIND TYYf.'S A14D Acaxjh-r Gf4:lm ... ,7u1e 30, 1989 (expressed in 'tWwwxls.) Governmental Ard T ms �» Special Dom Capital ASSM Genwal Swaim Service_ Pz3 .ects ._ Cash and invests (Notes le and 3) $ 21,279 $ 16,901 $ 31894 $ 24,238 Oksh with fiscal agent (Note 3) 224 - 91069 864 Taxes receivable (Note lc) 21164 - 48 8 Other receivables 697 1,717 156 21464 Unbilled reoeivables (Nate 1b) - - - - IrNwItory (Nate lg) 263 - - - Dum ftow other funds 505 - - - -- kWwxxm to other ftu-ds (Nate 10) 48,402 5,300 21,340 71425 Deposits and atiyer assets (Note 20) 13 - - - land held for rule (Note 1f) -• - - 19,549 may, ply and equipment, net (Nol"- 1f and 15) - - - - Am=Tt available for debt service ibnds - - - - Ammmt to be prmidred for payment of lcrq-term debt - 'lUM A sSM LIL 547 23 918 L214507 JjjL548 _ r Ta�rrr rrrF� AND FUND DQUITY LAnrrrr►M: i Acownts payable $ 1,528 $ 390 $ - $ 129 Aactued liabilities 11614 10 * a hits 701 14 -- - Tax and revenm anticipation note -- payable (Note 19) 5,000 - - Die to other funds - 505 - - Advarices from other funds (Notes 10 and 12) - - - - Deferznd mpermtion (Nate 4) Claims payable (Note 9) - .. - - - Deferred reve" (Nosh 5) 35,161 3,378 361 675 Current portion of long-term debt - -- - - Iang-texm debt (Jos .2 and 13) Oapeneated abserxm payable (Notes lj, 12 and 13) - - - 'IOrm MAM r IES 44,004 4,297 361 812 FUND DQITny: Cm*rlbuted capital (Note 10) - - - Ievest;D8m i21 ganeral fixed assets - -- - -- r FWd Fes : ReAived (Note 16) 27,043 5,051 34,146 53,736 Unreserved: Designated (Nate 16) 486 3,550 - - LWasignated 24014 11,020 - 7aiAL mm E WITZ 29c 543 19,621 34 f 146 53,736 70ML MAFrrr r M15 AM FUND EQUITY JILS47 23 918 34 507 154 548 See independent auditors' ruport and notes to financial statents. SCHED= A-1 a� Account Grouo Prwriety Fund Types Fiduciary General General Internal Ftmd lfvpa Mced Long-Tem Total (Memoxwe= Only) Enterprise Service Agency Assets [fit 1989 1988 $ 91783 $ 11,653 $ 573 $ _ $ $ 88,321 $ 75,432 936 41822 10,172 26,087 26,197 - - - - - 2,220 2,243 1 1,204 109 3,255 - 91602 41450 1,373 1,373 11,218 - .. - - - 263 208 505 1,417 - - - - 830884 38,002 ' - 184 29 - - 226 28 - - -- .. 19,549 4,854 1 36,654 10,902 - 69,442 - 3. .01998 114,410 - - - - 12,806 12,806 17,638 - - 3,32,774 132,774 7.7 $ 51,367 $ 27,670 $ 14,029 $ 69.442 $ 145,580 $ 494,608 362,618 $ 1,321 $ 179 $ - $ - $ - $ 31547 $ 2,701 120 161 -- - -- 11913 4,040 1,109 - - - - 1,824 2,630 - -- - 5,000 - - - - - - 505 - 944 - - - 82,940 83,884 38,002 - - 13,429 - -- 13,429 11,126 71422 573 - - 70995 7,336 - - - - 39,575 7,946 270 73 - - - 343 818 6,835 51773 27 - 58,333 70,968 62,354 128 - - - 4,307 4 435 3,941 10,727 13,608 14,029 - W 145,500 233,418 140,894 37,586 12,654 - - - 50,240 49,362 - - - 69,442 - 69,442 65,675 3,054 1,408 - - - 4,462 1,516 - - - -- - 119,976 88,415 - 41036 6,469 13,034 10,287 ' J 40,640 14,062 - 69,442 - 261,190 221,724 $ 51,367 $ 27,670 $ 14,029 $ 69,442 145f580 $ 494,608 $ 362,618 -3- C rY OF }itJNI7Ti(7M BEACH CXmom swzw Y' OF Row&w, E}wF? nL 'TS AND CHAN 5 IN FUND HAIANM ALL GOVEMMEYM FM TYF W For the year shied Jury 30, 1989 (wqxew.ed J n tha wands) Coral IMVEJtM: Property taxes (Note 1i) $ 23,072 Other taxes 30,519 Lic _>a and permits 3,650 Fines, forfeitures and penalties 2,458 Frcm use of ma»ey and property 6,530 From other agencies 8,542 CIMrges for current services 5,886 Other 1,077 Omtributia-Z from prcpex'ty aAvrs (Note 14) UM, REYENU 5 81,734 - E3�1DI'![�: ' Cw.zerrt• j City cim=il 113 - City Administrator 782 City Treasurer 320 City Attorney 415 City Clerk 170 _ Adainistrative Services 21956 O=zunity Develgment 2,110 Fire 12,722 I Police 23,556 Eioanamic Develcpw t - am unity services 71472 Public Works 16,503 Nwrldepartbrtal 7,1)12 Capital outlay Del* Service: Principal Interest - 228 TOM NDMTW 759 387 EMESS OF REVENUES OVER (UNDER) MaIENMURES 6,347 OTHER F1Iumcnm SCURMS (USM) Operating transfers in 1,291 Aftwxxs from other' funds (Nate 12g) - Praae eft of lcrq-term debt -. Operating tratg3fers out (21170) Other (Note 20) 6,191 'I ML an= Fn iam =Mcm (ICES) 5,312 E}UC$`SS OF REVENM AND anM SCE MM OVER , vArMuI'UMM AND OMM USES 11,659 " FUND F3 LVKE - BWnWM OF YEAR 22,349 Residual equity transfers in (Note lob) 346 Residual equity transfers out (Note lob) (4,011) RWD BhWKE - END OF YEAR $ 29,543 Soe endlent auditors' repcbrh and notes to financial statements. er s St3EDTIE A-2 � ~ ` Tatals I Special Debt capital (Henorard m► only) !! Revenue service Pro ects 1989 1988 1 � $ 3,298 $ 600 $ 260,970 $ 24,275 217 - - 30,736 30,207 j 2,123 - -- 5,773 4,348 - - - 2,458 2,338 S 2,449 3,192 11713 13,884 8,003 13,179 - - 21,721 15,492 - - - 5,886 31208 j - - - 1,077 11410 1,654 1,654 17,968 6,490 3,967 110,159 89,281 - - 43 156 130 198 - 324 1,304 1,106 - - 2 322 290 - - 627 11042 973 - - 123 293 245 - - 453 31409 3,287 - - 11535 31645 41187 - - - 12,722 11,840 9 - - 230,565 22,370 748 - - 7,18 - 123 - - 71595 6,954 -- - 388 16,893 16,205 4 55 17 71088 7,153 10,810 - 31,453 43,289 9t786 - 11362 51037 61399 975 - 5,799 2,751 8,778 4,268 11,892 71216 42,753 137,248 _ 89,769 -� 6,076 (726) (38,786) (27,089) (488) - 21000 173 3,464 31154 - 46,033 46,033 21,108 6,463 61463 26,313 (1,291) (3) - (30464) (31607) - 1,250 7,441 727 !1,291) 1,997 53,919 59,937 47,695 41785 11271 15,133 32,848 47,207 14,848 32,875 35,099 105,171 57,964 782 - 3,864 4,992 1,350 (794) (M0) (5,965) (19350) _ 19,621 $ 341 146 53 736 $ 137,046 $ 105,171 -5- i J w. • - r CITY OF H[1M'17Al31CN BiAaH DINED S'MTE10JT OF REVENUES, FXC31DrMRES AND .. =4CM IN Fi1ND BkWCES - H DGEr AND ACIVAL CV. WAL, SPECIAL REVEMM AND DEBT SMMCE TM TYPI For the year erd d June 30, 1989 (expressod iri thousands) General Fund Variaam - F`avorable Buc mt_ Actual (Unfavorable) _- REVENUES: Prcpetty tares $ 22,440 $ 23,072 $ 632 Other taxes 31,978 30,519 (1,459) Lim and permits 3j,366 31650 284 Fines, forfeitures and penalties 21570 2,458 (112) Fmn use of money and property 61875 6,530 (345) Firm other agencies 8,894 81542 (352) Chart 2s for aunt services 50197 5,886 689 Other 596 11077 481 CAL DU 1MVENUES 81,916 81,734 r (182) EKPOD17JM: oarrent• City Council 90 113 (15) City motor 772 782 (10) City Tra surer 319 320 (1) City Attorney 398 415 (17) City Clerk 199 170 29 �- Adininistrative Service 3,2IS 21956 259 amity it Nacpnent 21219 21110 109 Fire 12,701 12,722 (21) Police 23,373 231556 (193) mmu pity Services 71386 7,472 (86) Publt.a Wb7:ks 18,558 16,505 2,053 Ncxrdepaxnt.al 7,086 71012 74 Capitol outlay 1,915 11026 889 Debt Service: Principal - - - Interest 228 228 - - TOM DAUM IrI[JRES 78,467 75,387 3,080 EXCESS OF RE'VE LW OVER (UNUM) F.}CE'E3QDrMW 3,449 6,347 24898 01HER F.IrtANCIHO SOURCES (USES): Operating tmnsfem in 11300 11291 (9) Opesatirxg transfers out (21044) (2,170) (126) Other 6,191 61191 Sammy (USES) 5,447 5,312 (135) EXCESS OF REVENUES AND 0MLER SOURCE'S OVER (UNMR) EXPFNUrI[JNES PND O1F1Et: USES 81896 11,659 2,763 FUND BALANCES - BMIDDUM OF ME YEAR 22,349 22,349 - Residual equity tramfers in 346 346 - - Presidual equity transfers out (4,811) (4,811) FfJM) BALANCES - END OF YEAR 26,780 $_ 29,543 $ 2.1763 See irdepencient auditors, report and note to financial. statownts. _ --6- 5q I saOXTLE A-3 'i ftec ial Revowe Rm Is - debt Sexvia F+x1ds V Variance- ' Favorable Favorable t3r�et Actual Mfayorable) Bt t Actua.L , nfavorablel. i $ _ $ - $ 21221 $ 3,298 $ 1,077 209 217 8 - - r ! 1,720 21123 403 M - - _ 1,567 21449 882 31268 3,192 (76) i ..� 9,438 13,179 3,741 - - - 12,934 17,968 51034 5,489 6,490 11001 f 189 198 -(9) - - r 437 748 (312) - - - 10 9 1 w - 189 123 66 - - -, 4 4 - 55 55 -1 22,909 10,810 12,099 - - 1,362 1,362 - _. - 6,490 5,799 _691 73 23, 8 11,892 11.846 7,907 7,216 __.. 691 (10,804) 6,076 16.880 _ (2,418) (726) 1,692 21099 21000 (99) L (1,300) (1,291) _ 9 - (3) (3) E (1,300) (1,291) 9 2,G99 1,997 102 (12,104) 4,785 16,889 (319) 1,27' 1,590 j "! 14,848 14,848 - 32,875 32,U'15 - 782 782 (744) (794) - __ - - - �j 2,732 19,621 $ 16.889 $ 32.556 $ 34,146 1 590 -7- �� 1 CITY OF HUNT.IIMM EFACH SCHEDULE A-3 aarIrm sTA OMM OF RWEN(lES, MMDMMES AND CtWXW IN FUND RUMCEs - WD=r AND AC RIAL mwimw) G)N RAL, SPECIAL =ENUE AND MBT SERVICE FUND TYPE For the year ended June 30, 1989 (expressed in thousarxis) Totals (Mmmandum Only) Variance - Favorable 1(EVEN u: Budget Actual (unfavorable) Property taxes $ 240661 $ 26,370 $ 1,709 -- other taxes 32,287 30,736 (11751) Limme s and permits 5,086 51773 637 Fines, forfeitures and penalties 20570 2,458 (112) nim use of mosey and property 11,710 12,171 461 mm ot1wr agencies 18,332 21,721 3,389 Charges for am-ent services 5,197 5,386 689 Other 596 r, 1,077 481 TOIAL REvt3 ES 100,339 106,192 5,853 E?�IDITiTRES: Cltzreitt. _-.. City Council 98 113 (is) City Administrator 961 980 (19) City Tmasurer 319 320 (1) City Attorney 398 41.55 (17) City Clerk 199 170 24 Administrative Services 31215 2,956 259 CI m unity Develapnent 2,656 21858 (202) -" Fire 12,701 12,722 (21) Police 23,383 23,565 (182) CxxwVdty Services 70575 70,595 (20) Public Works 18,558 16,505 21053 1kn-depart=tal 71145 7,071 74 Capital outlay 24,824 11,836 12,988 Debt Service: Principal 1,362 10,362 - Tntarest C,718 61027 _ 691 70Ii4L E'XIDI'AhiES 110,112 94,455 151 627 MMS OF TMENtUES OVER EXPFNDITLTL (9,773) 11,697 21,470 0►II M FINAZM; SOURCES (USES): Operating transfers in 3,399 31291 (108) Operating transfers out (30344) (3,464) (120) Other 6,191 6,191 TOTAL alwat FINANCING C (USES) 6,246 61018 (228) EXCESS OF REVENUES AND MUM SOURCES OVER ([NMM) E} NDI'I uTm AND On*R USES (3,527) 17,715 21,242 FUND BALAIr ms - mGmm;G OF Tim YEAR 70,072 70,072 - Resicival equity transfers in 1,128 1,m - Resi6lal equity transfers Out (5,605) (54605) - FUND BUMCES - :21D OF YEAR $ 62,068 83,310 S 21,242 See indgm-dent auditor:' report and notes to fi.natrial stat m s. Ss`� SCHEMU A 4 CITY OF tt[Jt11'LNC MN B&;M C'M= STATEMENP OF REV04JMI EOME5 AND GRANGES IN REI'AI= FAR WDM - ALL n- m TY S For the year en:k d June 30, 1989 (egr+essed in tbousands) Totals Internal LMewrandu�a�L_ �yx�,,��y. REVENUES: fscc��ltT Ente rise service 1989 1988 _ w OPERATING ING REVS'�i M • . j Sales $ 12,467 $ 8,836 $ 210303 $ 91698 Rentals 887 - 887 9,388 Other 1,019 11019 449 i 703 AL OPERATING R04ENUE^ 14,373 8,836 23,209 19,535 OPERATING EXPENSES: Water purctzses 21807 - 2,807 2,988 Action 1,104 3,277 4,381 2,901 Emirmairg 1,282 - 1,282 827 PL%d.yctiart 2,490 - 2,490 2,123 Maintenwx a 1,003 - 1,003 1,167 Water Meters 520 - 520 556 Contribution to Cameral Fund in lieu of taxes 1,829 - 1,829 1,390 Employee medical claims - 2,095 21095 1,834 id-ability alai - 1,127 1,127 914 W=kers ca Vensation claims - 1,491 1,491 2,245 Depreoiat;Cn (Note lf) 1,392 1,741 3,133 3,215 TOM OPERATING IXPEMEu _ 12,427 _ 9,731 22,158 20c199 OPgtA'ITsI'1G INCOME (IWS) 1.94E (895) _ 1,051 (664) NC N-OPERKM G R'EVFNUES (EXPENM) Interest room 1,080 11232 21312 11588 Joint 184 (601) 184 ( ) (6 -h ) TOM NON-OPERATIM - REVE'NCTES (E3 'LASES) 479 1,416 11895 976 NM INCM 2,425 521 2,90 312 ' H'EGI 013 OF YEAR 629 887 11516 1,204 REMINED EARNINGS - nM OF YFAR �_3 054 S 1►408 � 4,462 $ 11516 See independent auditory report aixl notes to firwancia] ._ '� statc4nents. , I w I J CITY OF HUNrINGM BEAM SC HE MLE A-5 CIMAINM STAMW OF CHANGES IN FINANCIAL, POSITION - ALL PROPRIETARY FUND TYPES Fbr the year ended June 30, 2989 (expressed in thousands) Totals Internal (I.L:iDrandLm On1Y) Enterprise Service 1989 1988 SCJUJRC'M OF WORMS CAPITAL: Cparations: Net innonme $ 21425 $ 521 $ 2,946 $ 33.2 I.css cal sale of plant, property -, and &TAp errt 9 15 24 92 Dep,riniaticn 1,392 1,741 3,133 3,215 Working capital provided by cpezatians 3,826 2,277 6,103 31619 '- Increase in self-insurance claims payable - 86 86 163 Increase in oomperisated absences 9 -- 9 - -- C10[ntributionLS received 438 819 1,257 20915 Increa ye in Clertificates of Part-icipation 13 5,510 51523 13 Decrease in restricted assets 512 - 512 71 Increase in note payable - - - 336 Sale of property, Plant and egttipimexzt - 60 60 102 TOTAL SOURCES OF WOMCM CAPITAL 4,798 8,752 13,550 7,219 -' USES OF WORKING CAPITAL: Increase in investment in joint venture - 184 184 - I„crease in ply/ prePertY and equipme�rtt 459 1,580 2,039 5,019 Increase in restricted assets - 4,822 40,822 j4 Decrease in long-term notes 93 73 166 79 Decrease in long-term bands 166 - 166 - Increase in advances from other fronds 128 - 128 1,118 Disposition of fixed assets ao Ddred with contributed capital - 379 379 - Decrease in aag3ansated absences - - - 6 TMAL USES OF WOI6{ M CAPITAL 846 7,038 7,884 6,256 NET D CRFASE IN WORKIM CAPITAL $ 31952 1 714 5 666 963 ELEMERTS OF NET INCREASE (DECREASE) IN WORUG CAPITAL: Cash and investments $ 31261 $ 1,736 $ 4,997 $ 11185 Ithereskk remivable 18 53 71 21 Aamunts receivable 674 4 678 (25) Unbilled receivable 155 - 155 289 A ;ou nts payable (507) 39 (468) 159 Due to other tluAs 59 -- 59 - Interest payable (5) (125) (130) 6 Deposits 307 - 307 (593) Current portion of long-term debt (10) - (10) (3) Ao=ued payroll - 7 7 !7� NET INMEPSE IN WORKING CAPITAL Sy 31952 1 714 5 666 963 See inxlent auditors, report and notes to financial. statements. -10-- i NOTES TO FINANCIAI, STATEMENTS Number Description 1. Summary of Significant Accounting Policies 2. Description of the Reporting Entity j 3. cash and Investments 4. Deferred Compensation t 5. Deferred Revenue 6. Retirement Plan (Normal ) 7. Retirement Plan (Supplemental ) 8. Postretirement Medical Insurance _. 9. Self Insurance 10. Inter£und Transactions 11. Proprietary Funds Supplementary Information 12. General Long-Term Debt 13. Proprietary Fund Long-Term Debt 14. Reservoir Hill Assessment Bonds -� 15. Changes in Fixed Assets 16. Reserves and Designations of Fund Equity 17. Commitments and Contingencies 18. Joint Ventures ..J 19. Tax and Revenue Anticipation Notes I 20..� Other Required Disclosures I 1 21 . Subsequent Events i I sue. ...�_ CITY OP HUNTINGTON BEACH ■1 NOTES TO FINANCIAL STATEMENTS 1 JUNE 30, 1989 1 1. Stfti IC OF SRWFICAW A000(firINr fULICIES: a. Description of Fund Types and Account Groups: ..� The City of HuntiinLon Beach (City) accounts for its financial position and operations in accordance with generally accepted accounting principles for governmental units prescribed by the Government Aacountipq standards Board (GASB). The City uses various funds and account groups to record its financial activity. A fund or account group is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The City -°� maintains the following fund types and account groups: Governmental Fund T M: The General Fund is used to account for all financial activity that is not requirod to be accounted for in another fund. sal Revenue Funda are used to account for the receipt and expenditure of -� monies legally restricted to a specific use. Debt service Eunds are used to account for the receipt and disbursement of monies used for the payme-nt of general and redevelopment long-term principal and interest. Capital Pro-iects Funds are used to account for wnies used for the acquisition and construction of major capital facilities. i Pro prietarXFund TyM: u Enterprise Punds are used to mount for City operations that are financed in a manner similar to private businesses. Enterprise funds are used when the �! City wishes to recover the cost of a particular service furnished to the public on a cost (expenses including depreciation) reimbursement basis or when ` the City wishes to make periodic determinations of net income. `J Internal Service Funds are used to account for goods and services provided by one department of the City to another on a cost-reimbursement basis. Fiduciary Fund 1E�-,: Agency Funds are used to account for assets held by the City as an agent for individuals or private organizations. See independent auditor's report -11- I I I I I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 1. StPffm of SICWFICAUr ACCOUNTING PICKS (03RrINUM: a. Description of Fund Types and Account Groups: Account Grog The General Fixed Assets Account Group is used to record and control capital assets owned by the City other than thoue owned by proprietary fund types. The General Fong Tetra Debt Account Group is used to account for the uncatured long-term liabilities that will be financed from governmental funds. b. Basis of Accounting: Governmental and agency fund types use a modified accrual basis of acting. Revenues are recognized when they are susceptible to accrual. This means that they mount be meaaurable and available t finance current period expenditures. Revenues susceptible to accrual are received within 60 days after year-end and include property taxes, sales tax, federal and state grants and subventions, interest and certain charges for current service. Revenues which are not susceptible to accrual include certain licenses, ^` permits, fines and forfeiture and other miscellaneous revenue. Expenditures, other than principal and interest on long-term debt are recorded when incurred. Proprietary fund types are accounted for on the accrual basis. — Accounting for these fund types normally follows accounting for private Y Lusinesses. Revenues are recognized when earned, regardless of the date of receipt. Expenditures are recognized when incurred. Unbilled water revenue is accrued when earned. c. Measuranent Focus: The City's governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets. Statements of revenue, expenditures and changes in fund balance for governmental funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. The fund equity amount represents total net assets. Proprietary funds are accounted for on a capital maintenance 67 ~ See independent auditor's report --12- CITY OF HUNTINGTON LEACH �! NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 1. St**Vi tY OF SI(NIFICWr ACCOUNTM POL.ICIPS (CCtMNUW): c. Measurement Locus: .- measurement focus. This means that all assets and liabilities, whether current or noncurrent, are shown on the balance sheets. Their reported fund equity represents tc,tal net assets. Proprietary fund operating statements present increases (revenues) and decreases (expenses) in total net assets. d. Budgets and Budgetary Accounting: The City Council annually adopts a budget by June 30th of the prior fiscal year for all governmental fund types. The budgeted expenditures become the appropriations to the various departments. Estimates are also made for revenue which, along with the appropriations, are used to compute the budgetary fund balance. This appropriated budget, as defined by GASB Code Section 2400.109, covers substantially all governmental fund type expenditures with the exception of capital improvement projects (capital projects funds) carried forward from prior years, which conmst.itute a legally authorized non-appropriated budget. The City Council may amend the budget at any time. The City Administrator may transfer funds from one object purpose (personal services, operating expenditures or capital outlay expenditures) to another within the same department without changing the total budget of a department. A department head my transfer funds from like object categories of the same derartment. Any changes to a total departmental b;dget must be approved by the City Council. Expenditures may not exceed appropriations at the departln- ital I—el. All unused appropriations lapse at year-end. w Budgets for cloverrcrtntal fund types are adopted on a basis substantially consistent with generally accepted accounting principles as legally required. _ There are no significant non-budgeted financial activities. Revenues for ,`special revenue funds are budgeted by entitlements, grants and estimates of future development and economic growth. Expenditures and transfers are ' lidgeted based upon available financial resources. On r -- Wore February 28th of each year, each Department submits data to the City ' •i nist.rator so that a budget may be prepared. This budget` is pnepmr• fund, function and activity and i:icludes information on past years, C. A- year estimates and requested appropriations for the next fiscal yea, "7fore May 1st, the proposed budget is presented to the City Council. Th<, v Council holds public hearings and may awed the budget: by See independent auditor nort -13- � i `i riTY OF HUNTINGTON BEACH NOTE. FINANCIAL STATEMENTS -ontinued) 30, 1989 1. a"mARY of siGNiFicAN ' AommuNG Pout .[_ ' (CuFI'C wm): d. Budgets and Budgetary Accounting: -- a majority vote. Any changes to the budget must 1, within the revenues and _ reserves estimated as available. Budgetary data is presented for the General, special r• -enue and de:. service Funds. Budgetary information is not presented for the c-.nital projt funds since these are budgeted on a long-term project by project. hasis. The City utilizes an encumbrance system as an aid in controll,4ng expenditures. Encumbrances represent amounts co mi tted for govls or :_ ��icen for which a purchase order has been issued and tiv-- goods have mt. beer, received or the services have not been rendered. At year-end, all' outstanding encumbrances are reported as reservations of fund balance t governmental fund types. These outstanding encumbrances are then reprogrammed into the new fiscal year. The budgetary information presented for estimated revenue and appropriat, nr represent the original budget adjusted for changes made by action of the C t-y Council, City Administrator or Department Head. All changes to the origin. adopted appropriations (expenditures plus other financing uses) are mim►arized below (in thousands). Funds with no changes are not shown: nInd Original Revise General $79,672 $85,322 Special Revenue Funds: Gas Tax 8,161 10,513 Sewer 525 736 Planned Local Drainage 1,795 2,133 Public Communications 219 220 Grants 1,930 6,490 Park Acquisition 2,326 4,858 and Development Narcotics Forfeiture 100 198 J See independent aL-idit:or' s report --14- 1 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNO 30, 1989 1 �I 1. SIH4W OF SIGNIFICANT AaX1WrINf3 RX ICIES (OWrINUE D): 1 e. Investments: ., Investments are stated at cost, which is less than market. If market values decline below cost, no loss is recorded if such declines are considered permanent. The assets of the Enployee Deferred donFensation Eland (an Agency Fund) are reported at market value rather than cost, in accordance with GASB Statement 2. f. Property and Equipment: Acquisitions of property aril equi.pnent are generally recorded as expenditures in governmental foal types at the time of purchase and are capitalized at cost in the General Fixed Assets Account Group. Tend held by the RWedevelopment Agency for > 'sale is capitalized at the lower of cost or market in the Redevelopment Agency Capital Projects Fund. Expenditures for infrastructure (roads, curbs, sidewalks, sewers, etc.) are not capitalized as such assets are immovable and generally of value only to the City. No depreciation is provided for any asset capitalized in the General Fixed Assets Account Group. Property and equipment acquired by proprietary fund types are capitalized at cost at the time of purchase in the fund making the purchase. Both proprietary and general fixed assets acquired from gifts or contributions are capitalized at fair market value at the time received, or in the case of water fixed assets, at City Council awe date. Depreciation for both donated and acquired assets is calculated on the straight-line method over the estimated useful lives of the assets shown below and charged to the operations of the respective fund. Production, pur:ping, transmission and distribution plant -- 10 to 50 years General plant- 20 to 50 years Transportation equipment- 5 to 30 years Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is calculated by offsetting T interest expense incurred form the date of borrowing u:stil cciTletion of the project with interest earned on the invested proceeds over the same period. The City has capitalized $185,000 of interest on the construction of the Emcrald Cove apartment caaplex. y ��Crr See independent auOitor's report -15- I CITY OF HUNTINGTON BEACH I NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 1. SI!'I4W OF SIGWFICAN`r Apt OOON17M POLICIES (03 I NM): g. Inventories: -- Inventories are accounted for in gover:vental funds by the consumption _ method, whereby inventories are capitalized ard recorded as expenditures when used. Inventories of materials and supplies totalled $262,662 at June 30, 1989 and are valued using the. weighted average cost method. This amount is offset with an appropriate reservation of fund balance. _ h. Interfund Transactions., -- . During the course of normal operations, numerous transactions occur between _ funds. Theme result in operating transfers, residual equity transfers, balances due to or due from other funds and baliuces advanced to or frrxn other funds. Residual equity transfers represent nonrecurring or non- routine transfers of equity between funds. Operating transfers represert transfers between funds that are normal and recurring. Amounts that are due to or due from other funds represent the current (due within one year) portion of monies that are to be paid to or received from other funds. Amounts that are classified as advances from other funds represent the long-term portion of monies which will be repaid to other funds. Amounts that are classified as advances to other funds represent the long-term portion of amounts that will be received from other funds. In governmental funds amounts that are advanced to other funds are also offset equally by a fund balance reserve account, which indicates that they do not constitute expendable, available financial resources and therefore are not available for appropriation. In proprietary funds there is no reservation of fund equity. Quasi-external transactions are interfund transactions that would be treated as revenues, expenditures or expenses if they had involved organizations external to the City. The City has recorded all Saasi- external transactions as revenues, expe*::itures or expenses. Transactions that constitute reicnburse ent :.o = fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the fund that it is reimbursed. All _ other interfund transactions are reported as operating transfers. See independent auditor' s report -16- jf CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL, STATEMENTS (continued) JUNE 30, 1989 1 1. S11n2 Y OF SIaff EgCAN`r AOODI CING PCUCIEs ( ): i. Long-Tenn Obligations: If Governmental fund long-teen debt (principal, interest and fiscal charges) is recognized as an expenditure when due regardless of when the expenditure is incurred. Obligations that are expected to be financed from spendable, available financial resources are reported as a fund liability. The .remainder of tie obligation is reported in the General Long-Te:m Debt Account Grog. Bond discounts and issuance costs are recognized in the period that the debt is issued. Proprietary fund long-teen debt is accounted for in the respective funds. Interest on the debt is recorded when incurred. Principal that is due within one year is classified as a current liability. The remainder is classified as a long-term liability. Bond discounts are recorded as a re5action of outstanding debt and are deferred and amortized over the term of the debt. J. Employee CaTpensated Absences: J -. The City records the cost of vacation and sick leave when paid in the Jgovernmental fund types and when incurred in the proprietary fund types. At June 30, 1989, the unfunded liability for vacation and sick leave accumulated by the City's governmental funds totalled $40307,025 (note +1 12f). The City has recorded this amount in the General Long-Term Debt L Account Group with the assumption that these amounts will be paid with future financial resources rather than currently available spendable ( resources. In the proprietary fund types the liability of $128,085 has l� been recorded. These amounts represent the "cash surrender value" of all accumulated vacation and sick leave which is the amount that would be paid to eaployees if they terminate. Vacation is paid at 100% of the accrued [ amount, while sick leave is paid at varying amounts depending on the er:ployee's contract. 1_ L L ' �4� See independent auditor's report -17- � 1 CITY OF HUNTINGTON' BEACH NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 1. SUH NNU OF SIMIFICANT ACUrICWING POLICIES (CONTINUED): k. Fund Equity: The various types of fund equity recorded on the balance sheet are described below: Governmental Fund Tyres Reserved Fund Balance represents that portion of fund balance that is not appropriable for expenditure or that is legally segregated for a specific future use. Unreserved/Designated Fund Balance represents that portion of find balance that has been tentatively set aside by the City Council. Unreserved/Undesigrate Fund Balance represents the portion of fund ball, that is available to by appropriated and spent by the City Council. I Proprietary Fund 2y3x Retained Earnings represents the accumulated earnings of an enterprise or internal service fund. r Contributed Capital represents the permanent fund capital of a proprietary fund which is created when a general fixed asset is transferred to a proprietary fund or a residual equity or certain types of operating transfers are made to a proprietary fund. A description of the changes in these amounts is shown in note 11(b). Account GrourA Investment in General Fixed Assets represents the City's monetary investment in general fixed assets at cost. r 1. Property Tax Revenue: Property tax in California is levied in accordance with article 13-A of the California constitution. The basic levy is a countywide-levy of one percent of total assessed valuation. This basic levy is allocated to See independent auditor's report -18- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL. STATEMENTS (continued) JUNE 30, 1989 I 1. Sfl�lM OF SI(NIFICW AOC XfMNG POLICIES (CWINUW): 1. Property Tax Revenue: county government, school districts, cities and special districts. Additional levies require two-thirds approval by voters and are allocated directly to the specific government unit. Property tax revenue is recognized in the fiscal year levied provided that the revenue is collected I during the year or within 60 days of year-end. 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. f The property tax calendar is as follows: j Lien Date- March 1st of prior fiscal year Levy Date- July lot ! Due Date, First Insctallment- November 10th Due Late, Second Installment- February 10th i Delinquent Late, First Installment- December 11th J Delinquent Date, Second Installment- February 11th The taxes are remitted to the local governments periodically during the year. Below are shown the dates and percentages from the County (dates and percentages vary slightly from year to year) 7 November 30th- 5% i -' December 19th- 20 0 December 28th- 20% February let- Balance of First Installment March 28th- 5% April 26th- 34% July 26th of next fiscal year- Balance of Second Installment I m. Allocation of Interest Income Among Funds: The city pools all non-restricted cash for investment purchases. Interest 7income is allocated monthly to the various funds based on the month-end cash balances. Interest income from restricted cash is recorded directly in the fund earning the income. Ll6V�7 See independent auditor's report -19- i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS '- (continued) .TUNE 30, 1989 w 1. suMMWy of SI(RiIFICANT AOMKWING POLICIES (COM'IIMV: , n. Equipment Replacement Fund: All machinery and equipment which is not owned by proprietary funds is -- owned by the Equipment Replacement Fund, an internal service fund. The machinery and equipment is leased to user departments. All machinery ::nd equipment which does not replace existing equipment is purchased by the _ respective fund and transferred to the Equipment Replacement Fund. This is recorded as a residual equity transfer out in the purchasing fund and contributed capital in the Equipment Replacement Fund. o. Emerald Cove Housing Fund Transfer: The City operates the Emerald Cove Senior Citizens Apartment Complex and records the activity in the Emerald Cove Housing Fund, an enterprise fund. ! The City annually transfers funds from the Law-Income Housing Find to subsidize operations. These transfers are recorded as a residual equity transfer in the Low-Income Housing Fund and contributed capital in the Emerald Cove Housing Fund since the City desires annual determinations of net income. I p. Total Columns and Comparative Data on Combined Financial Statements: The combined financial statements include total columns which aggregate the financial statements of the various fund types and account groups. The columns are designated "memorandum only" because the totals are not comparable to a consolidation since interfund transactions (with the exception of certain leases between the oversight unit and ca%xaent wits described in note 2) are not eliminated. Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data for individual funds have not been presented in all statemments because their inclusion would make certain statements unduly complex and difficult to understand. i I I •- C.� See independent auditor's report -20- I CITY OF HUNTINGTON BEACH 1 NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 1. SuwoiY OF SIG NIFICANr Aa0DUN17NG POLICIES MWINUM: 1 q. Joint Ventures: i The City is involved in one joint venture which is recorded in a proprietary fund type. It is recorded using the equity method of i ' accounting. The net increase in the City's equity position is recorded as a non-operating revenue or expense. s 2. DESCRIPTION OF TIC+ R ]G ENTITY: 1 This report incorporates CASB Code Section 2100, "Defining the Governmental Reporting Entity," which outlines criteria to determine whether a separate le"l entity's financial information should be included in the City's financial statements. Based upon the statement's guidelines, certain separate legal entities have been included in this report. The criteria -' used in evaluating the different entities were oversight responsibility, -.� financial dependency, ability to influence operations, designation of management, budget adoption, significant influence over operations, i financing defici,.,z or entitlement to surpluses, location within the City's geographic fo ndaries and benefit and general availability to the citizens of Huntington Beach. Below is a description of each of these entities and how their financial activity has been evaluated and incorporated into this report: HuntirALon Beach Public Facilities Corporation (Public Facilities -' Corporation)- This entity was formed in 1970 to issue bonds to construct .� the civic center and library cerplexes. The City leases the facilities from► the Public Facilities Corporation. The '_,v.se is a capital lease -� because title to the facilities passes to the City upon termination of the wj lease. The Public Facilities Corporation's original governing body was appointed by the City Council. However, the governing board itself appoints any successors. The City Cm=il adopts an annual budget for the Public Facilities Corporation which cannot terminate its lease with the City if -' the City meAts the terms of the lease. At the termination of the lease, the Public Facilities Corporation w-11 dissolve and its assets will revert to the City. The assets and related revenue and expenditures that are used ..J for repayment of the bonds are recorded as a debt service fund. Assets used to construct capital improver ents are recorded as a capital projects f id. The capital projects fund normally receives no revenue other than interest. If additional funds are required for capital projects, they will See independent auditor's report -21- J I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ' (continued) JUNE 30, 1989 2. DIIL9►ZtTff10N OF TUE REPCO TING 9WrM: be transferred from the Public Facilities Corporation Debt Service Fund. Since the Public Facilities Corporation is a part of the City's reporting entity, the capital lease between the City and the Public Facilities Corporation has been eliminated. ... i Parking Authority of the City of Huntington Beach (Parking Authority)- This entity was formed in 1967 to issue bonds to construct off-street parking facilities. The City leases the facilities from the Parking Authority. The lease is a capital lease because the City Council may, by +• resolution, dissolve the Parking Authority and deed the assets to the City. The Parking Authority's governing body is the City Council which annually adopts a budget for the Parking Authority. The Parking Authority is financially dependent on the City for all its operations. At any time during the term of the lease the lease payment ma- be forgiven by resolution of the City council if there is suffic:-ent cash in the Parking i Authority to meet the debt service requirements. The assets and related revenue and expenditures that are used for repayment of the bonds are _ recorded in a debt service fund. Amsets used to construct capital improvements are recorded in a capital projects fund. The capital projects fund normally receives no revenue. If additional funds are required, they will be transferred from the Parking Authority Debt Service Fund. Since the Parking Authority is a part of the City's reporting entity, the lease has baen eliminated. nedevoelotMnt Agency of the City of Huntincton Beach (Redevelopment ~ Agency)- This entity was formed in 1967 to facilitate the renovation of ~ older areas in the City limits. The City Council serves as governing body of and adopts an annual budget for the Redevelopment Agency. The Agency is financially dependent on the City for all of its operations. The tax increment revenue received by the Agency which can only be used to repay Agency debt is recorded in a debt service fund and the capital improvements made are recorded in a capital projects fund. Long-term advances from the City to the Agency have been recorded as a long-term advance on tl�e rest.-ative fund's balance sheet with a corresponding reservation of fund e-T_ .:... The Agency's debt is recorded in the General Long-Term Debt Account Group since these amounts will be paid fram future financial resources, Huntington Beach Civic Improvement corporation (Civic Improvement Corporation)-- This corporation was formed to provide for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mort:gage Bonds- 1st Issue as described in Note 12. The Civic Improvement See independent auditor's report -22- S�V CITY OF HUNTINGTON BEACH i NOTES TO FINANCIAL STATEMENTS (continued) 7 JUNE 30, 1989 I -, Z. DM3MMICH or TUB DING EMTY: Corporation issued $20,000,000 of certificates of participation to provide for this defeasance. The governing board of the Civic Improvement Corporation is the City Council which also adopts its annual budget. The Civic Improvement Corporation is dependent upon the City for all of its operations. The Civic brprovarent Corporation has title to the Civic Center complex and leases it to the City. It is a capital lease because title to the Civic Center complex reverts to the City at the end of the lease. The lease cannot be terminated if the City meets all its financial obligations. The assets pledged for repayment of the cerLificates of II participation and the related revenues and expenditures are recorded in the Civic Lrprovement Corporation Debt service Fund. The lease has been eliminated. jl Etuntir-gLon 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 Authority's governing body is the City Cm=, it which also adopts the annual budget. The Authority is totally financially dependent J on the City. 5"he Authority's activity is recorded as both a debt service fund and as a portion of the activity in the Equipment Replacement Fund (a proprietary fund type). J There are many other governmental agencies, including the County of Orange, various elementary school districts, the Coast Cmunnity College District, the Huntington Beach Union High School District and various special districts which provide services within the City. These entities have independently elected governing boards and are not a catponent unit of the City of Huntington Beach and their financial infornnation is not included in this report.. 3. CASH AND : J i Cash and investments at June 30, 1989 totalled $114,408,057 and are claesified in the accompanying combined balance sheet as follows (in thousands): Cash and Investments $. 88,321 Cash with Fiscal Agent 261087 Total 11$ 4,408 See independent auditor' s report -23- i M CITY OF HUNTINGTON BEACH ^, NOTES TO FINANCIAL STATEMENTS ' (continued) JUNE 30, 1989 1 am w 3. CASH AND DWWMENTS (CWrI:tWM): The following disclosures are made in accordance with GAM Statement Number 3. Collateral for Deposits �- Under provisions of the California Government Cade, California banks and savings and loan associations are required to secure a City's deposits by _ pledging government securities with a value of 110% of a City's deposit. California law also allow-s financial institutions to secure City deposits by pledging first trust deed marLgage notes having a value of 150% of a City's total deposits. The collateral for deposits in Federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of .- California Department of Bankbiy. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home boon Bank in San Francisco, California as a third-party trustee. These _ securities are physically held its an undivided pool for all California public agency depositors. The trustees keep detailed records of the security pool. The City Treasurer, at his discretion, may waive the collateral requirement for deposits which are fully insured up to $100,000 by the Federal Deposit -- Insurance Corporation or the Federal Savings and Loan Insurance Corporation. It is the City's policy to waive the collateral requirement if there is a higher interest yield on the investments. Authorized Investments The City of Huntington Beach operates its pooled cash investments under the "prudent Man Rule" (California Civil Code sections 2261 et seq.). This allows a broad spectrum of investments as long as the investment is deemed prudent and allowable under legislation of the State of California - (Government Code Section 53600 et seg.). Under the provisions of the City's investment policy and in accordance with section 53601 of the California Government Code, the City may invest in the following types of instruments: See independent auditor's report -24- .7 rA - 1 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) �I JUNE 30, 1989 I 3. CAM AND INESDMTS (OWINUM) a. Bankers acceptances b. Negotiable certificates of deposit i c. Cannercial paper 1 d. Bonds issued by the City e. obligations of the United States Treasury f. Federal Agency obligations of: 1 Federal Intermediate Credit Bank (FICBs) Federal Land Bank (F AO i •-� Federal Ham Loan Bank (FHLBs) Federal National Mortgage Association (FNMAs) small Business Administration (SBAa) Goverment National Mortgage Association (GNMU) Tennessee valley Authorities (TVAs) Student Loan Association Notes (Sallie Mae'e) g. obligations of the state of California or of any local agenr:y within the State of. California: The Local Agetx-y Investment Fund (LAIF) is a special fund of the California State Treasury through which any local government may pool investments. Each agency may invest up to $10,000,000 in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hags. Investments with LAIF are secured by the full faith -• and credit of the State of California. h. Repurchase Agreements: Throughout the year ending June 30, 1989, the City utilized overnight -- repurchase agreements for temporary investment of idle cash. Such agreements were used on average of 20 to 22 times per month and generally did not exceed 105%, of the City's investment portfolio. i i. Reverse-Repurchase Agreements: Although the City's investment policy does not preclude the use of Reverse-Repurchase Agreements, the City did not borrow through the use of reverse repurchase agreements at any time during the year. -, j, Medium-Term Corporate Notes J See independent auditor's report -25- i CITY OF HUNTINGTON BEACH on NOTES TO FINANCIAL STATEMENTS ' (conL'inued) JUNE 30, 1989 3. CASH AND L�NPSIl�TI"3 ICt[�Tl'I1�IU®) I i I ' k. Mutual Funds Safekeeaicxg Arrangements for Investments Under Sections 53651 to 53653 of the California Government Code, as amended, the collateral underlying an agency's investments must be delivered to the City. If U.S. Federal obligations are used as the _ underlying cmllateral, the delivery may be made by "book-entry" only. Ebr all other collateral, the security moat be physically delivered to the City or a third--party custodial agent. Under California Senate Bill number 2115, passed in 1986, a bank is permitted to maintain the underlying securities in its Trust or Safekeeping Department when acting as a third party custodial agent. GASB Statement 3 regLdres the City's bank balance of deposits and - investments be categorized as follows: sits . . Catcaory 1- Deposits which are insured by FUIC, CSLIC, a state - depository insurance fund or a multiple-financial institution collateral pool, or deposits which are collateralized with securities held by the City or the City's agent in the City's name. Category 2- Deposits which are collateralized with securities held by the pledging financial institutions trust department in the city's name. Catecioty 3:. Deposits which are uncollateralized, or collateralized but the pledged securities are not held in the City's name. Investinents -- Cat&gory 1- Investment which are insured by SIPC, or where the securities are held by the City or the City's agent in the City's name. - Category 2- Investmants which are uninsured, where the securities are held by the purchasing financial institution's trust department or agent in the City's name. see independent auditor's report -26- -" �b 1 CITY OF HUNTINGTON BEACH l NOTES TO FINANCILr, STATEMENTS (continued) JUNE 30, 1989 3, CAS11 AND ENV PS (CMrINUM) category-1- Investments which are uninsured, where the securities are held by the purchasirg financial institution's trust department or agent, but not in t1v t City's name. Category Market 1 2 3 Cost Value '� De sits ..l Demand Accounts $ - $ 1,853 $ - $ 1,853 $ 1,853 Certificates 7,144 45,596 - 52,740 52,740 of Deposit Cash with Fiscal 15,915 15,915 15,915 Agent Deferred - - 10,172 10,172 10,172 -` Compensation subtotal 7,144 47,449 26,087 80,680 60,680 Invesbrcnts Corporate Notes $ 2,936 $ 778 $ -- 3,714 3,672 Bankers 13,025 497 - $13,522 13,547 -' Acceptances Federal 1,444 - - 1,444 1,477 7 Obligations Mutual Funds - - 7,712 7,712 7,768 Repurchase - - 1,900 1 900 11900 Agreencnts Subtotal $ 17,40 $1,275 L9,612 28 292 $28,364 Investment in LAIF 10,000 10,000 Petty Cash 49 49 Savings Total Bank Deposits 119,021 119,093 and Investments Less Demand Warrants (4,613) (4,613) Outstanding Total Cash and 11S 4►408 11S 4,480 Investments i �r See independent auditor' s report -27- 1 CITY OF HUNTINGTON BEACH { NOTES TO FINANCIAL STATEMENTS ' (continued) JUNE 30, 1989 i 4. DEFE[EW OMPENSWIM r I Permanent City employees have the option of deferring a portion of their salary under Section 457 of the Internal Revenue Code. 1rhese amounts are invested in savings accounts, cer(.ificates of deposit and other prurient investments. The City retains title to these funds until withdrawn by the -- aVloyee, which may take place at temination or any later date. The assets of l.he plan remain subject to the general claims of creditors of the City. The amxmt of deferred casspensation payable at June 30, 1989 was $13,479,000 which represents the market value of the investments. Since the City has a fiduciary responsibility to administer the plan, the assets are recorded in an agency fund in the City's financial statements. The assets of the plan are subject to the claimer of the City's general _ creditors and mstust remain the property of the City until paid or made available to the participants. The City believes that it is unlikely that -- it will use the assets to satisfy the claims of general creditors now or in the future. The City offers two different investment meditme for participants. Titre choice of investment is made by the participants. Certain revenues in governmental funds due from the Redevelopment Agency have been deferred until received from the Agency. Interest an these ammmt.s accrues at 10% per antrum with the exception of interest on loans from the Public Financing Authority which accrues interest at varying rates. They are detailed below (in thousands): GENL AL FM: Development fees deferred in 1984 and 1985 $ 173 Land sales from the City to the Redevelopment Agency from 1982/83 to 30,636 1988/89 Interest on above amounts and on general 4.352 fund advances from 19:8/79 to 1987/88 Total General Fund 35,161 See independent auditor's report -28- _ I r JAI 1 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) .PONE :fin, 1989 i "1 5. DEFEWW REVENUE (tlWrJNUED): I i SPECIAL RFVENUE FUNDS: i Park Acquisition and Development Fund: i I Sale of Emerald Cove site to Redevelopment 1,741 Agency Development f�;!s deferred in 1985 248 Land sale proceeds paid to Emerald Cove 832 Interest on above amounts 289 Total Park Acquisition and Dowe)upment [land 3,110 Seer Fund: Development fees deferred in 15C5 43 Interest on above amounts 19 Total Sewer Fund 62 Gas Tax Lund Interest on advances from 1988/89 50 Planned Local Drainage: Development fees deferred in 1985 72 Interest on above amounts and on advances 84 from 1987/88 Total Drainage Fund 156 Total Spec is l Revenue glands 3,378 DEYr SFIVVICE FINDS: Public Financing Authority: Interest on advances frcm 1.988/89 361. -- CAPITAL P'ROJECI a FUNDS Parking Structure Interest on above advances from 1988/89 675 Total Deferred Revenue 112.L575 r' See independent auditor' s report -29- .r ac+ • CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNL 30, 1989 6. WrIREMERr PWI -- NOPMAL: a. Plan Description: The City contributes to the California Public Fxployees Retirement System -- (PEKS), an agent, multiple employer retiremenL system that acts as a common investment and administrative agent for participating public entities in California. Generally only an employee's base salary (excluding overtime) is subject to retirement benefits. The Latal payroll for the year ending June 30, 1989 was $46,537,456. The payroll :subject to retirement benefits was $38,113,271. The plan covers all permanent City employees and temporary employees who work more than 1000 hours in a twelve month period. Benefits vest after five years of service. Benefits for emp]oyees vary based upon such factors as final yearly compensation, i -mfety or non-safety status and age at retirement. There are two groups of covered employees: " Safety employees- include swotm police, fire and marine safety employees Miscellaneous employees- all other covered exployees b. Employee and Employer contribution obligations: The City makes two types of contributions on behalf of covered employees. ` The first contribution represents the amount required to be made by the _ City (the employer rate) . The second represents a:. amount which is normally paid by the employee, but is reimbursed to the employee by the - City (the mmTber rate) . The member rate is set by contract and normally remains unchanged. The employer rate is set by PE S and changes from year to year. The employer rates for the Fiscal year ending JurA 30, 1989 are shown below: See independent auditor' s report -30- V q I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 6. RETIRT91W PLAN - NOR L (OWrINUED) b. Employee and Employer Contribution obligations: .l Miacellaneous Safety ... catggory Catm y Normal Cost Rate 6.141% 16.384% Unfunded Liability Rate .038% .137% Total Required 6.179% 16.521% _I The member rates for the fiscal year ending June 30, 1989 are as follows: Member Rates as a Percentage ' of Wad Local Miscellaneous Members- 7% Local Safety Members- 9% _j The employer rate contributes the remaining amounts necessary to fund the benefits for its mwbers, using the actuarial basis re=mnended by the PER.S actuaries and actuarial consultants and adopted by the bird of i Adainistration. J c. Funding Status and Progress: Pension benefit obligation is a standav3ixed measure of the present value of future pension benefits estimated to be payable in the future due to M mployee service to dates. it helps assess the funding status of the system, assess progress mtsade in accumulating sufficient assets to pay j benefits when due, and make capparisons among employers. This measure is independent of the funding method used to determine City contributions to the system. PERS conducted an actuarial valuation to determine the City's pension -- benefit obligation as of June 30, 1969. Significant actuarial asm ssptions used were as follows: i See independent auditor' s report -31- j CITY OLD HUNTINGTON BIRCH NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 6. R8'T!'R"Wr PW - Nei. (l wrINUED): c. Ruviing Status and Progress: . Rate of return on present and future a:,sets- 8.5% per annum . Projected salary increases for covered employees due to inflation- 5.5% per year . Projected salary increases due to merit- 1..5% per year. . Postratireswrit benefit increases- 0% The pension benefit obligation as of June 30, 1989 based upon June 330, 1988 data adjusted for plan amendments adopted through January 9, 1989 was as follows (in thousands): ;.. Retirees and beneficiaries currently receiving benefits and tenninatrd employees not yet receiving benefits $44,478 Cuvrent Erzloyecs: Accumlated employee contributions and investment 32,135 earnings Employer-fina.iced, vested 48,521 E3nployer-finan-ed, non-vested 1,653 Total pension benefit obligation 126,787 Net assets, available for benefits at cast (market value is $136,408 120 L609 Unfunded pension benefit obligation S 6.178 d. Actuarially Determined Contrilution Requirements and Contributions Made: PENS uses., the Entry Age Normal Actuarial Cost Method which ie a projected lwniefit cvl;: metha3. That is, it takes into account those benefits that are expected to Lae earned in the future as well as those already accrued. This method states that the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of eimployment until retirem-ent. PERS uses a modification of the Entry Age _ See independent auditor' s report -32-- 7�O i � CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 6. fWEk9*W PIM - NMWL (OM?rD*=): d. Actuarially Determined Contribution Requirements and Contributions Made: i Cost method in which the employer's total normal cost in expressed as a level percent of payroll. PEELS also uses the level percentaS;e of payroll method to amarLize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the year 2000 for prior service benefits and in 2011 for current service benefits. The significant actuarial assumptions used to coupute the actuarially determined contribution requirement are the same as those used to crn+pute the pension benefit obligation, as previously described. The contribution to the system for 1988/89 of $6,817,910 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1987. The contribution consisted of the normal cost, $4,400,028 (11.54% of current covered -' payroll) and a $121,053 amortization of the unfunded actuarial accrued liability (.32% of covered payroll). The City made employer contributions of $4,521,078 (11.86% of covered payroll) and on behalf of employees contributed $2,296,832 (6.02% of covered payroll. -- e. Trend Tnformtion: Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information for the City of Huntington Beach is not published in the California Public Employees Retirement system Annual Report. Therefore, ten years of trend information are required within the City's financial statements since PEELS does not display financial information for individual agencies within their report. 1987/88 is the first year that this actuarial information has been made available by PERS and until ten years are available, an many years as are available will be presente3. Trend information for 1987/88 and 1988/89 are sham and employer contributions for 1936/87, 1987/88 and 1988/89 are shown (dollar amounts expressed in millions): See independent auditor's report -33- CITY OF HUNTINGTON ©EACH ^. NOTES TO FINANCIAL STATEMENTS ' (continued) JUNE 30, 1989 e. Trend Information: 1986/87 1987/88 1988/89 Net assets available .for benefits -- $105.6 $120.6 -- Pension benefit obligation - $115.3 $126.7 Net assets available for benefits, expressed - 91.6% 95.1% as a percentage of the pension benefit obligation Unfunded pension benefit obligation - 9.7% 6.1% Annual Covered Payroll $32.1 $ 36.7 $ 38.1 Unfunded pension benefit obligation as - 26.4% 16.0% a percentage of covered payroll EVloyer contributions $ 4.5 $ 4.4 $ 4.5 E ployer contributions expressed as a percentage of annual covered made 14.1% 12.7% 11.9% according to actor rxally determined reyuarez.,ants 7. WrIP0MPIAN - . a. Plan Description: The City provides a retirement supplement plan to all employees covered under the City's normal retirement plan with the California Public: &Vloyees Retirement System (see note 6). This plan will pay the retiree an additional a:aAunt to his or her normal amount for life. The amount will cease upon the enployee's death. The amount is carpeted at retirement and remains constant for his or her life. b. D Vloyer and Fxployee Contribution obligations: The City is funding the retirement supplement plan on a "pay-as-you-go" basis. This means that no funds are being set-aside to fund the future unfunded liabilities. See independent auditor's report -34- 616 - CITY OF HUNTINGTON BEACH ` NOTES TO PINANCIAh STATEMENTS (continued) JUNE 30, 1989 7. RETEREMW PLAN - iFlMAi. (03WCLWW): c. Funding Status and Progress: I The City conducted an actuarial valuation to determine the pion benefit obligation as of June 30, 1989. significant actuarial assunQtions used were identical to thr. assumptions described in note 6. The pension benefit obligation as of June 30, 1988 is as follows: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,292 Current employees who are vested 5L 779 Total pension benefit obligation $7,071 Net assets available for benefits 0 Unfunded pension benefit obligation g,071 Since there was no analysis of the pension benefit obligation as of June 30, 1988, no analysis of the total change in pion benefit obligation in presented. d. Actuarially Determined Contribution R egcurements and Contributions Made Since the City is on a "pay-as-you-go" basis, there was no computation as to the level of funding for the plan. e. Trend Information J This is the first year any analysis of funding status and ro trend .� information is available. As soon as trend information is available, it. will be presented. ( I f. Accounting For Supplemental Pension Plan U Expenditures for this pension plan are recorded in the general fund. During the year, expenditures of $156,170 were recorded. �I See independent auditor' s report -35- L i CITY OF HUNTINGTON BEACH �. NOTES TO FINANCIAL STATEMENTS � (continued) w JUNE 30, 1989 i 8. ETIRBMFW MFI)ICAL INSURANCE: i a. Plan Description: The City provides post-retirement medical insurance benefits to retirees who meet all three of the following criteria: .ht the time of retirement the employee is employed by the City; and .At the time of retirement the employee has a minimsn of ten years of service or is granted a service connected disability retirement. .Following official separation from the City, the retiree is granted a retirement allowance by the California Public RVloyee's Retirement System. •. The City's obligation to provide the benefits to a retiree ceases when any of the following occurs: .During any period the retiree is eligible to receive 14alth insurance at the expense of another employer. .The retiree beccmes eligible to enroll automatically or voluntarily in Medicare. If an retiree dies, the benefits that would be payable for his or her insurance would be provided to the spouse or fanny for eighteen months. Benefits for insurance premiums are payable based on the years of service credit for the retiree. The premiums may be used for any of the health ` plans that the City's active employees may participate in. b. Accounting and Funding: The Retiree Medical Insurance Fund is rep-urded as an agency fund. Contributions are made by the City's operating funds cn a periodic basis. The fund is only to be used to purchase medical insurance for retirees. There are no outstanding liabilities at year-end. During the year payments of $53,151 were made for insurance premiums. See independent auditor's report -36- ou ! 1 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATENENTS (continued) 1 JUNE 30, 1989 9. SEW INEASUMM: 'Give._ City is self-insured for workers' ccrV.:nsation, general liability and certain health claitnec. The self-insurance covers the first $150,000 for worker's cmpensation claims and the first $75,000 of each health claim. Claims in excess of self-insurance linute are covered by insurance up to $1,000,000 for health and the st:atulory limit for workers' motion. The City maintains nc general liability ,policy. Self-Insuram-e activity is recorded in an internal service fund. It is the City's policy to charge expersb claims that are reasonably determinable and where the evidence of the City's liability in probable in accordance with CASH Code Section C.50.110. Expense is recognized for claim that have J occurred but have not yet been reported to the City. Charges are made by the self-Insurance Fund to other funds based on estimated costs. The liability for self-insurance claims includes an estimate for ammmta incurred but not reported at year-end. Transfers from the General Fund are periodically made to cover deficits caused fran inadeguate charges to other funds. «J 10. : a. Receivables/Payables: Individual interfund receivables and payables at Jane 30, 1989 were as _ follows (in thousands): i Advances to Advances from ( � OLher FWds _ other Elands `i Getweral Fund $48,402 Special Revenue Ftutids: .., Sewer 62 Planned Local Drainage 406 Grants 1,172 Gas Tax 550 i Park Acquisition and 3,110 Development See independent auditor's report -37- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL 8TATHMENTS (continued) JUNE 30, 1989 10. EWrERF= 'IRANSAL. CM (QO[rTPI11i M: Debt Service F urds: Public Financing Authority 21,340 ; Capital Projects Funds: Parking Structure 7,425 Enterprise Funds: Water Utility 1,417 Emerald Cove housing $ 944 i General Long-term Debt Account Group 82,940 Totals 8$ 3,884 8ML884 b. Residual Equity Transfers Below is a schedule reconciling total residual equity transfers in with total residual equity transfers out (in thousands) :Residual Equity transfers $4,992 Plus current year transfers to Equipment Replacement Fund (a proprietary fund) which were recorded as contributed capital in `'•e Equipwnt Replacm ent Fund 819 Plus transfers from Low Income Housing Fund to the Ehw;rald Cove Musing Fund (a proprietary fund) which were recorded as contributed capital in the Emerald 60 - Cove Housing Fund. Plus transfers from Reservoir Hill Fixnd to the Water Fund (a proprietary fund) which were recorded as contributed capital in the Water Fend. 94 Residual transfers out $5,965 see independent auditor's report -38- CITY OF HUNTINGTON ©EACH NOTES TO FINANCIhL STATEMENTS (continued) JUNE 30, 1989 11. PROPKI817W k'1.*M SUPPIMMERENRY MATIM: a. Segment Information for Enterprise Funds: The City maintains three enterprise funds; Water Utility, Meadowlark Golf Course aril Emerald Cove Housing. Certain key financial data was as follows (in thousands): MEADOWLARK EMERALD D WATER GOLF CONE UTILITY COURSE HOUSING TOTAL, Operating Revenues $13,483 $ 283 $ 607 $14,373 Depreciation Expense 1,275 27 90 1,392 -� Operating Income (Loss) 1,442 256 248 1,946 Net Income (Loss) 2,191 221 13 2,425 � J Contributed --� Capital Received, 470 0 62 532 Net Net Acquisitions (Dispositions) of Fixed Assets 430 0 0 430 4 y 4' Net Working Capital 7,079 936 1,525 9,540 Total Assets 40,222 4,159 6,986 51,367 Long-Term Obligations, j Net of Current Portion 756 1,671 9,480 7,907 Total Equity 36,792 2,418 1,430 40,640 See indepcWdent auditor's report -39-- CITY OF HUNTINGTON BEACfi NOTES TO FINANCIAL STATEMUNTS (continued) JUNE 30, 1989 ' 11. PFDMLPVM FUMS fXjPPI ARY It TION: b, Contributed Capital: Below is a schedule of the changes in contributed capital during the year (in thousands): Water ''Meadowlark Dwrald Equipment Saur :e: Utilit_ Golf Course Cove Housing Replacement Additions Developer $ 282 S - $ - $ - Contributions Reservoir Hill Transfer (note 10b) 94 - - - Low Imome housing Transfer - - 62 - (note 11b) Equipment Purchases - - - by City (note 11b) 819 Total Additions $ 376 $ - $ 62 $ 819 Reductions - Disposals of Dquipnent - - 379 Total Reductions - - 379 Net Increase (Decrease) in Contributed Capital 376 - 62 440 Contributed Capital July 1, 1988 34,508 1,267 1,373 12,214 -- Contributed Capital, 3,S 4,884 $1,267 1S ,435 1,S 2,654 June 30, 1989 -' See independent auditor' s report -40- CITY OF nUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 12. GEMU%L WNG-TERM DWT: Below is a summary of changes in general long-term debt for the year ending .itarv--- 30, 1989 (in thousands): ..� Balance Balance ! Outstanding Outstanding July 1, June 30, 1988 ?additions (Retirements) 1989 1970 Park Bonds $2,590 $ 0 $(310) $2,280 ._i Public Facilities -� Corporation Leasehold 3,000 0 (230) 2,770 i Mo9e Bonds- 2nd Issue Parking Authority 825 0 (125) 700 Revenue Bonds Civic Improvement Corporation Certificates 19,830 0 (220) 19,610 of Participation Coastal Conservancy 408 0 (408) 0 Note -- Cbn ensated Absences 3,822 485 0 4,307 ^? Advances From 36,918 53 ,145 (6,194) 82,940 4 Other Funds Amounts Due Under Owner Participation 1,408 3,588 (1,408) 3,588 and Disposition and Development Agreements i --' Public Financing Authority Revenue 26,775 0 (265) 26,510 Bonda Mortgages Payable 0 2,875 0 2,875 Total 9S 5,576 60,871 ( 1_ $ 1,167) 14$ 5,580 J ' See independent auditor's report -41- .� V✓ C CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 12. C,MMM LAW-TIM iJEW (QOWINUED 1: a. 1970 Park Fronds: Cli March 1, 1970 the City sold $6,000,000 of general obligation bonds to acquire and construct park facilities. Principal matures annually on March 1st with interest, at 6%, payable semi-annually. The annual debt service requirements to amortize the bonds outstanding at June 30, 1989 are as follows (in thousands): I Year Finding June 30, Principal Interest Total '- 1990 $305 $137 $442 1991 350 118 468 1992 370 98 468 1993 395 75 470 1994 415 52 467 1995 445 27 472 Total ,52,280 5507 $2,787 - b. 13untingLan Leach Public Facilities Corporation Leasehold Mortgage Bonds- Second IsEn1e: On September 1, 1972 $5,000,000 of leasehold mortgage bonds were issued to construct the Central Library complex. The bonds are s3mued by a lease whereby the City annually tranafere $399,000 to the Public Facilities Corporation. PrirrripaI matures annually on September 1st with interest ranging from 5.0% to 5.9% per annm payable seni-annually The annual debt service requirements to amortize the bonds outstanding at June 30, 1989 are as follows (in thousands): Y- See independent auditor's report -42- 0 "I-, V CITY OF HUNTINGTON DCACH NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 12. GEMWAL ICIZ-TEM4 DM (COMMUM: b. 1juntingUon Beach Public Facilities Corporation Leasehold Mortgage Bonds- Second Issue: Year Ending Tune 30, Principal Interest Total 1990 $240 $146 $386 1991 260 132 392 1992 270 117 387 1993 290 101 391 1994 305 84 389 1995 320 66 366 1996 340 46 386 1997 360 28 388 1998 385 10 395 Totai I2,770 _5Z3 0 qjt 500 c. Parking Authority Revenue Bonds: On September 1, 1968 $2,300,000 of revenue bonds were issued to construct off-street parking improvements. 71he bonds are secured by a lease which requires that the City hudget annual transfers to the Parking Authority sufficient to reet the aebt service requirements on the bonds. Principal maturen annually on SeptEsd)er 1 and bears interest at 5.25% per annum, payable sani-annually. The annual debt cervice requirements to amortize the bonds outstanding at June 30. 1989 are as follows (in thousands) : is See independent auditor's report -43- .......... ....... C1'rY OP HUNTINGTON BEACH NOTES 'rO rINANCIAL STATEMENTS (continued) JUNE 30, 1909 12. (;ENFIM UXJG-IrffM DWr (COMENM) c. Parking Authority Revenue Bondy: Year Ending June 30, Princip2l Interest 'fotal 1990 135 33 168 1991 140 26 166 1992 150 18 168 1993 160 10 170 1994 115 3 118 Total C 700 9 S 790 d. Huntington Beach Civic Improvacent Corporation Certificates of Participation: on July 15, 1986 the Huntington Civic Improvement Corporation isaued $20,000,000 of certificates of participation in order to defease the IbmtingLon Beach Public Facilities Corporation Leasehold MorLgage Bonds- First Issue and construct certain parking facilities. The Civic Improvement Corporation owns the Civic Center complex and leases it to the City. The City has agreed to make annual lease payments equal to debt service requireme-nts on the certificates. The interest rates on the certificates variety between 4.75% and 7.9%. Interest is payable smi- annually on February lut, and August 1st with principal maturing annually on August Int. Debt service rEcluiremnts to maturity are as follows (in thousands) See independent auditor's report -44- 12 IM Tl>L) CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 71.2. G NEM ILWr4IM DWC (CO rDWED) d. Huntington ©each Civic Impro-Mnent Corporation Certificates of Participation: i t Year Eroding June 301 Principal Interetit Total 1990 $230 $1,508 $1,738 1991 245 1,494 1,739 1992 260 1,479 1,739 1993 275 1,462 1,737 1994 295 1,443 1,738 -� 1995 315 1,422 1,737 1996 335 1,399 1,734 1997 360 1,374 1,734 1998 385 1,346 1,731 1999 415 1,316 1,731 2000-2007 4,715 9,079 13,794 2C08-2016 111780 5,234 17,014 Total 1S 9L610 2�5 &556 ;L48,166 7 e. California Coastal Conservancy Note Payable: _, J In March, 1983, a storm damaged the municipal pier. The California Coastal Conservancy agreed to lend the City $425,000 to cover a portion of the - repair costs. Due to the cmplete destruction of the end of the pier in January of 1988 and the later conde ration of the entire pier, the State Coastal Conservancy Commission agreei to amend the original loan agreement and forgive the loan. f. Caripensated Absences Payable: J ; There its no fixed payment schedule to pay ttxe governmental fund liability of $4,307,025 for coapensated absences earned through June 30, 1989 (see note 1k). J see independent auditor's report -45- CITY OF nUNTINGTON BEACH p i NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 a° r 12. COGMAL. 10+Jt'-13 M DWr (CON MED): r g. Lang-term Advances from Other Funds: !�+ 1 � There is no fixed repayment schedule for the Bedevelopment Agency to pay the long-term advances from the City which totalled $82,940,076 at June 30, 1989. Below is a description of the various transactions (in thousands): Sale of land by the Park Acquisition and Development Fund in 1983 for $1,741 plus interest of $74 which was $1,915 computed at 10% per annum. During the year $177 of principal and $192 of interest was repaid. Land sales from the General Fund fran 1983 to 1989 totalling $30,635 plus interest totalling $3,064. 33,699 During the year 358 of interest was repaid. Cash advances fran the General Fund from 1978 to 1989 for $13,132 plus interest of $1,271 14,403 which was computed at 10% per annun. During the year $3,570 and $1,648 of interest was repaid. �- Cash advances from the Grant Fund in 1983 and 1989 " no interest. 1,1.73 Developers fees payable to various funds totalling $558 which are subsidized by the Agency plus interest of $190 which was computed at 10% per annum. -" During the year $130 of principal and $117 of interest 748 was repaid. Cash advances from the Public Financing Authority in 1988 and 1989 totalling $20,979 plus interest of 21,340 $361 ca►puted at varying rates. _ Advances fran the Drainage Fund in 1987 totalling $250 plus interest of. $53 computed at 10% per annum: 303 Advances from the Parking Structure Fund in 1988 totalling 7,425 $6,750 plus interest of $675 cvcputed at 10% per annum. See independent auditor's report -46- I � � f i m7 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 1 12. MERAL I,flt9Cy-79011 DEM T (cEMZNUED): { g. Long-term Advances from Other Funds: Advances from the Gas Tax Fund in 1988 totalling $500 plus 550 interest of $50 computed at 10% per annum. Advances from the Water Fund totalling $1,139 in 1986/67 and 1987/88 plus interest of $245 which was computed at 10% per annum: 11384 Total amount advanced from other funds 582,940 I Below is a reconciliation of the changes in amounts advanced from other funds to the Redevelopment Agency recorded as general long-term debt for the year ended Jury. 30, 1989: Amount due to other funds on July 1, 1988 $36,918 Advances Received 46,033 Advances Repaid (6,194) Interest recorded in other funds as deferred revenue 5 L112 Amount advanced from other funds, June 30, 1989 §82 940 h. Amounts Due Under Owner Participation and Disposition and Development Agreements: Beginning in 1983, the Redevelopment Agency entered into various a9 rents with outside parties to facilitate Redevelopment activities (see note 17). .� ParL of two of these agreements calls for debt to be incurred to outside L' developers. In 1983, the Redevelopment Agency agreed to purchase certain public i improvements from Mola Development� ! opment Corporation for $1,408,047. Tye atnotult carried interest at 11% per annum. The amount was to be repaid to Mola by a pledge of tax increment revenues generated by other improvements constructed by Mola. In July, 1988 the Agency and Mola agreed to settle ; the debt- for $1,200,000. i See independent audi:-or's report -47- CITY OF HUNTINGTON BEACH �. NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 12. (2NERAL I.arv4M D= (CMUNUEO): h. Amounts Due Under Omer Participation and Disposition and Development Agreements: In 1986 the Redevelopment Agency was loaned $2,730,332 by a private corporation to relocate tenants of a mobile home park. This advance carries no interest. There is no fixed repayment schedule for this advance but the amount will be repaid with a pledge of tax increwnt revemmes and transient ocrupancy tax revenues received by tfve Agency. Also in 1989 the Agency agreed to reimburse a private party for various public improvements made for a specific project totalling $857,771. There is no specific repayment schedule except that the amount is expected to be repaid by early 1991. -- i. Public Financing Authority Revenue Bonds: On May 1, 1988 the Public Financing Authority issued $26,775,000 of Revenue Bonds to finance loans to four of the Redevelopment project areas. The -- bonds are secured by four separate loan agreements between the Public Financing Authority and the Redevelopment Agency. Each loan agreement is secured by a pledge of all taxes levied upon all taxable property within - the related project area. A portion of the proceeds of the bonds were withheld from the Public Financing Authority since the increment assessed valuation (assessed valuation minus base year valuation) was not sufficient to yield tax increment revenues to repay the loans. These proceeds are recorded as "Restricted Cash" on the Public Financing Authority'3 balance sheet. This escrowed cash is invested in securities with yields sufficient enough to cover debt service on the bonds should the increment assessed valuation not increase enough to yield sufficient tax increment revenues. If the increment assessed valuation becomes large enough, this cash will be released for general use by the Public Financing Authority. Interest on the bonds ranges from 5.75% to 8.375%. Interest is payable semi-annually on May 1st and November 1st. Principal matures annually on November 1st. Debt service requirements are as follows (in thouiands): See independent auditor's report -48- w ``I I i CITY OF 11UNTIWGTON BEAC11 NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1909 i W 12. Q1EtAL ra r J11M DW WOWINUED): i. Public Financing Authority Revenue Fonds: Year Ending June 30f Principal Interest Total 1990 $270 $2,165 $2,435 1991 295 2,149 2,4 .4 1992 305 2,131 2,436 r' 1993 325 2,111 2,436 1994 340 2,089 2,429 1995 370 2,065 2,435 1996 405 2,038 2,444 1997 430 2,009 2,439 1998 465 1,976 2,441 -.. 1999 495 1,940 2,435 2000-2007 5,735 13,775 19,510 2000-2018 17,075 4,858 21,93.1 2S 6,510 3�_6 6$�5_ J. Miwellaneous Notes Payable: In 1988 the Redevelopment Agency purchased property in the Main/Pier project area and assmaed three: separate mortgages. The mortgagee bear interest at 119, with debt service payable monthly according to the mortgage contract. Below is a schedule of debt service requiremnts to maturity (expressed in thwra�.nds>. r See independent auditor's report -49 0 I I CITY OF RIRITTNGTON nEAC11 -- NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 12. CFA'M TnWr4IM DE[Tr (C RrIN=): j. Miscellarseous Notes Payable: Fiscal Year Ending June 30, Principal Interest Total 1990 S 14 321 $ 335 1991 1,050 200 1,250 1992 1,014 134 1,148 1993 18 67 105 1994 21 85 106 1995 758 759 1,517 Total 6 2,875 S 1,586 $4,461 k. Defeased Bonds outstanding: As of June 30, 1989, there were $6,095,000 of defeased Public Facilities Corporation Leasehold Mortgage Bonds -1st Issue outstanding. The debt service on these bonds iR being handled by an escrow ixx" nt consisting of guaranteed Feral securities with yields sufficient to fund all of the required debt service. - 13. PIKIRLETARY FM Tj3Wv-TEM DF:RP: The following is a summary of changes in proprietary fund long--term debt for the year endiry.j June 30, 1969 (in thousands): _ I I See independent auditor's report -SU- • ill I w7 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS i (continued) JUNE 30, 1989 Balance Balance outstanding Outstanding July 1, July 1, 1988 Additions (Retirements) 1989 1963 Water Revenue DoMs $ 869 $ 0 $166 $ 703 "j San Joaquin 220 0 54 166 Reservoir Note i !� Meadowlark Golf l; Course Note 11729 0 29 1,700 Swrald Cave Certificates of Participation, net 4,523 13 0 4,536 of unamortized discount of $64 Note Payable County of Orange 409 0 73 336 Copensated Absences 119 9 0 128 Advances from other 944 0 0 944 Funds Claims payable 7,336 85 0 7,422 Public rinancing Authority Certificates of Participation Q 5,510 0 5,510 Total 2116,149 $5,618 1122 2$ 1,445 The current portion of the proprietary fined long-term debt is $269,620 t See independent auditor's report -51- a CITY OP HUNTINGTON BEAC11 I NOTES TO FINANCIAL STATEMENTS r� (continued) i JUNE 30, 1939 13. A10PRIUVW FUND IDN3-47M DEUT (COUrMUM: a. 1963 Water Pevenue Bonds: 1 on November 1, 1963 the City sold $3,750,000 of revenue bonds to construct Water improveinents. The bonds are secured by revenues of the Water Fund. Principal matures annually on November 1 and bears interest at 3.5% per annum, payable semi-annually. The annual debt service requirements to amortize the bonds outstanding at June 30, 1989 are as follows (in thousands): :.1 Year Ending June 30, Principal Interest Total 1990 $ 190 $ 19 $ 209 1991 200 10 210 1992 200 6 206 1993 113 1 114 Total � _703 36 ,r,�739 The bond indenture requires that the Water Fund net revenues equal or exceed 1.25 times the annual debt service requirement (principal and interest) . Net revenues are defined as gross revenues less maintenance and operation revenues, excluding depreciation. The City has complied With this requirement as shown below (in V xmmnds) : Gross revenues $ 3.2,467 Operating expenses, excluding $ 10,766 ' interest. and depreciation Net revenues $ 1,701 Debt service $ 30 Debt service coverage 56.7 �� See independent auditor's report -52- 1 CITY OF HUNTINGTON BP.ACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 i 13. PH"IETARY FUAD L Ra-TEEM (03R`IImUE'I)): b. San Joaquin Reservoir Note Payable: -, In 1979 the City and several other local cities and water districts purchased the San Joaquin Reservoir. The City is paying a portion (13.560) of the debt service for the 1961 construction of the reservoir plus operating and improve:ent costs. in the event of default, the expenses and/or debt service payments shall be reallocated among the remaining non- defaulting owners in proportion to the percentage interest owned as though the party in default dic; not exist. The City has recorded its portion of the reservoir as a fixed • sset in the Water Fund. The future respired payments on the note are as follcma {ir, thausanids) Year Ending Required June 30, Payment 1990 $ 60 1991 61 1992 55 $ 176 less amrxmt representing interest (10) Principal outstanding 166 at June 30, 1989 c. Meadowlark Golf Course Note Payable: In October, 1974 the City financed the purchase of Meadowlark Golf Course through a long-term 7% note totalling $2,272,000 (Sales price of $3,200,000 less downpayment of $928,000. The! note payable is collateralized by future revenues and does not represent a general obligation of the City. The City has leased the golf course to an outside party for a minimum amount of ' $150,000 aiu►ually through 2002 plus a percentage of income based upon gross revenues. From 2003 until 2008 the minimm, payment will be $200,000 plus a percentage of income- based upon gross revenues. In 2009 the payment will f be $115,703. l_. See independent auditor's report -53-- it i CITY OF HUNTINGTON ©EACH i NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 13. SEW RY F(M IL7Wv-'I M DWr (d0N'I WD): c. Meadowlark Golf Course Note Payable: ^� As part of the City's initial payment of $928,000 the County of Orange ._ contributed $600,000 upon the City's guarantee to use general City funds, when and if necessary, to ensure that Meadowlark Golf Course will be maintained as open space The future required payments on the note are as follows (in thousands): Year Ending Required J!v)e 30, Patent 1990 $ 150 1991 150 1992 150 1993 150 1994 150 1995 and after 21565 3,315 � less atnou nt representing interest (1,615) Principal Outstanding $ 1,700 at June SO, 1989 d. Emerald Cove [sousing Certificates of Participation: On June: 1, 1984, the Redevelopment Agency sold certificates of participatiOn to finance the construction of a senior citizens apartment complex. The certificates bear interest at 9.5% per annum, which is payable sE►mi-annually. The eni-.ire principal is due on June 1, 1994 A discount of $126,500 is being amortized to maturity. Below is a schedule of debt service requirenentr to maturity (expressed in thousands): See independent auditor's report -54- r .1 I I � ! CITY OI' HUNTI NGTON BEAC11 .34 NOTES TO FINANCIAL, STATEMENTS (continued) 1 ! JUNE 30, 1989 13. PADPF ETARY FUND TCWx-T= DCXYI+ (CMIrINi.M) I ' d. Werald Cove Housing Certificates of Participation: i Year Ending June 301 Prir cil-al Interest Total 1990 $ 0 $ 437 $ 437 1991 0 437 437 1992 0 437 437 1993 0 437 437 j 1 1994 4,600 400 5L000 Totals S4,600 2 148 $6,748 e. Nate Payable- County of Orange: In July, 1987 the City received Fire communications Dguipmeut valued at $409,140 wxler an agreement with the County of Oranr.. whereby the City will i repay the County for the equipment. The equipment and note are recorded in the Dluipment Replacement Lund, an internal service fund. Interest rates on the note vary between 5.4% and 6.50. Debt service requirements are as follows (in thousands) : _ Year C'nding Required June 30, —Eaymmcnt .J 1990 $ 98 1991 98 1992 97 1993 and after 97 $390 less amount representing interest (54) �- Principal Outstanding 5336 at June 30, 1.989 L I , Aa See independent auditor's report -55- w I I � CITY OF I:UNTINGTON BEACH R, ltIOTHS TO FINANCIAL STATEMENTS (continued) JWIE 30, 1989 13. M40PfRWrNZY @Ili LaWY-TEFM DEU (OMMMM): i f f. Compensated Absences: f Thcre is ra-) fked repayment schedule to repay the compensated absences for I proprietary fund types of $128,075 at June 30, 1989. g. Advances From other r unds: There is no fixed repayment schedule to repay the amounts advanced from other funds of $943,01 at June 30, 1989. h. Claims Payable There is no repayment schedule for claims payable of $7,422,000 as of Ju:us 30, 1989 (see note 10). i. Public Financing Authority Certif'icat:ea of Participation: In March, 1989, the Public Fin^ncing Authority issued $5,510,000 of w ;. certificates of participation to finance the purchase of capital eguip mnt. The amount is recorded as a liability of the Equipment Replacement fund. Interest on the certificates ranges from 6.75% to 6.95%. Interest is payable semiannually on February 1st and August 1st with principal maturing annually on February 1st. A discount of $68,875 is being amortized to maturity. Dcbt service reauirem"nts to maturity are as follows: See independent auditor's report -56-- j CITY OP HUNTINGTON BEACH t ! �n NOTES TO FINANCIAL STATEMENTS j (continued) JUNE 30, 1989 I 13,. PfilDf"IZIE7M EMdD IANC ►i DEBT (00Rr I1I3)): i. Public rinancing Authority Certificates of Participation: Year Cnding June 30, Principal Interest Total 1990 $ 0 S 346 $ 346 1991 0 376 376 1992 960 376 1,336 1993 1,075 313 1,338 1994 11100 243 1,343 1995 1,170 168 1,338 1996 1,255 87 _ 1,342 Total S5f-510 ,51,909 ,57,419 14. IfiN IMIR [I11L ASSES.SMMr [ONDS: In January, 1989, the City issued $1,653,905 of special assessment bonds to finance certain public improvements. Proceeds from the issue which are to be used for improvements have been accounted for in a capital project fund, and :►ave been designated as "contribution from property owners". The bonds are only to be repaid by property taxes levied in the assessment district. The City has no liability on the bonds if revenues are insufficient to fir4 the required debt set-.,ice. Accordingly, these bonds have been excluded £ran the General Long-Term Debt Account Group. Principal matures annually on September 2nd, with interest payable semiannually on March 2nd and September 2nd. Interest rates on the bonds ��. range between 6.5- and 0.1% Debt service requirements to maturity are as follows (in thousands): L fSee independent auditor's report -57- l t _Q� � lS� ■ i t CITY OF HUNTINGTON REACH { NOTES TO FINANCIAL STATEMENTS (continued) �. 1 JUNE 30, 1989 14. nESMWII. DILL AS' FS^MW DMM (OaMlNUM): Year. ) Ending t Jame 30, Principal Interest Total 1990 $ 0 $ 146 $ 146 1991 4 133 137 1992 40 129 169 -� 1993 45 125 170 1994 50 122 172 1995 50 118 168 1996 55 114 169 1997 60 110 170 1998 65 105 170 1.999 70 100 170 2000-2010 1,215 610 1,825 Total 11,654 1$ ,812 IL466 - 15. �S 1A L IXM ASSETS: Below is a schedule of the changes in genaral fixed aswt:s for the year (in thousands) : Balance Balame — July 1, 1988 Additions Disix-rsitions June 30, 1989 Iznd $ 38,784 $ 3,714 $ 0 $42,490 _. Buildings 25,150 0 (511) 24,647 Other 1,733 0 0 1,733 Const.ructien in Prccesp 0 564 0 564 Total 65,675 11I 9,442$ S6 See independent auditor's report -58- - t I "1 .o, CITY OF HUNTINGTON PEACH r r NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 15. CIMNG S IN PIM ASS= (LIJe r NM l: Below is a schedule of changes in proprietary fund fixed assets for the year (in thousands): Enterprise runds: Balance Balance July 1, 1988 Additions Dispositions June 30, 1989 Land $ 4,731 $ 0 $ 0 $ 4,731 Buildings 5,334 0 0 5,334 Machinery and Equ ment 49,134 458 (28) 49,564 71otal Cost $59,199 "� 458 " (28) 59,629 Less accumlated = depreciation (21.,270) (22,9751 Net Boo'. Value, 3"�7,929 $ 36. 654 Enterpr-'.se runds Internal Service maids Balance Balance July 1, 1988 Additions Dispositions Jime 30, 1989 Machinery and $21,267 SllL580 S(505) 6 22,342 Equipment —" Less ac curmalated depreciation (10,128) (11,440) Net Bouk Value, 1S 1,139 10,902 Internal Service auxis See independent auditor' s report --59- CITY OF IIIINTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 ~' I 16. RMEWW AND DERGNATIOM OP FWD FQU TY: ' I Under the provisions of GASB Code Sections 1800.121-123, the City has set ^' j up reserves and designations of fund equity. Reserves indicate amounts which cannot be appropriated in future periods or which are legally set aside for a specific futw-e use. Designations represent amounts that the — City has made tentative plans to use in a future period. The City's i reserves and designations are described below (in thousands): Special Debt Capital General Revenue Service Projects Fund _ runds Funds E%z ds Total RESERVES Encumbrances $2,086 $2,706 $ - $ - $ 4,792 Long-term receivables 13,241 1,922 21,340 9,100 45,6C3 Reimbursement - 423 - - 423 agreements Capital 11,453 - - 25,087 36,540 projerte Debt service - - 12,806 - 12,806 - Lauri held for - - - 19,:549 19,549 resale Inventory 263 - - - 263 TOTAL RESFIZVES 27,043 5,051 34,146 53,736 119,476 DESIGNATIChNS Subsequent year's 48_6 31,550 - - 4,036_ expenditures TOTAL RrSERVES $27►529 jp,601 -4,146 �53,736g124,012 AND DESIGNATIONS�`"`� See independent auditor's report -60- 'A I� i e>w CITY OF HUNTINGTON DPACH NOTES TO FINANCIAL STATEMENTS (continued) JUNR 30, 1989 16. RE!q&M IM M SIGNATICM OF CiND E72UrIT: a. Reserves for encumbrances represent amounts committed for enperfoniied services or for undelivered goods where a ca mitment to purchase has been made. b. Reserves for long-term receivables represent amounts included in advances to other funds and other receivables which are not scheduled to be repaid until future years, and for which there is no offsetting deferred i revenue. c. Reserves for reimbursement agreements represent expected future reirka2rserrtent-s to developers for sewer and drainage construction. d. Reserves for continuing projects represent amunts committed for long- term projects not yet completed. e. Reserves for debt service represent: amounts ac cuxrulated in debt servi• s funds or set aside in another f»nd in accordance with a bond indenture or similar covenant. f. Reserves for land held for re_^•.ale represent land held by the Agency that is legally committed for resale. g. Reserves for inventor} represent amounts for general supplies inventory. h. Designations for subsequent years' expenditures are made to pvovide for -- deficits bLdgeted in subsequent years. i. Designations for other fund deficits represent amounts to cover fund deficits in the Self--Insurance Fund. 17. AND O011rINK2PK`=: a. Legal Actions: There are certain legal actions pending against tree City that have avisen in the course of normal operations. In the opinion of management and the City Attorney, t'_-rn ultimate resolution of these actions is not expected to have a significant impact on these financial sL-atecrents. �t i See independent auditor' s report -61- i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATNMENTS (continued) JUNE 30, 1989 .� 1 M 17. AND (aa INLIEW: b. FbrLgage Revenue Bonds: Tht's City established a program in February, 1983 to provide funds for the -- pur::hase of hone mortgages Within the City. Under this program, a tat.al of $40,000,000 of mortgage revenue bonds has been issued, $20,000,000 in March, 1983 and an additional $20,000,000 in July, 1984. In 1983 the City also issued $16,000,000 of Loans to Lender Revenue Bonds to cons-truct an apartment ccmplex for low and moeerate ii=m housing. In 1985 the City also issued $25,000,000 of Multi-Family W)Pasing Revenue &mds for construction of various apartment coaVlexes. The bonds are payable from, and are secured by, a pledge of payments made - on the home mortgages and all funda held by the trustee under the indenture agreements. The bonds are not an indebtedness of the City and there exists no legal obligation on the part of the City to make payments on the bonds foram any source other than :he revenue and assets that were Fledged. Accordingly, these programs have been"excluded from the accoalaar:ying 'I combined financial statements. c. Land Purchases- A.C. Marion: r The City has entered into an agreement to purchase a parcel of land from a private party for $3,190,000. The agreement required the City to pay $1,000,000 for the Purchase of phase I of the parcel and pay $500,000 for phase II of the parcel. For the r:esxt three years the City may purchase one of the remaining phases each year. For the use of the remaining parcels the City pays a rental/option fee which is paid quarterly on Vebruary 28th, May 31st, August 31st and Noved-jer 30th. The City may cancel the agreement at any t rxr in which case the obligation to pay the remaining rental/cj:)tioa fees or to purchase any remaining pl>ases ceases. Listed beelow is the szheuule of payments and rental/option fees for the life of the contract fin thmisands): See independent auditor's report -62- �n ot.v CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATHIMENTS (continued) JUNE 30, 1989 17. OM II'IIEi'15 AND t70Ni'INt`O CIES ({](x7'CIrAM: c. Land Purchases- A.C. Marion: Fiscal � Year Ending Purchase Quarterly ,Lune 30, Price Phase Rents ! 1990 $500 4 $ 71 1991 690 5 26 Total S11190 r 97 d. 1.988 Owner Participation Agreareent-Nola Develoixnent Corporation: w A f -� in July, 1988, the Redevelopment Agemy, the City and Mola 1)evelopnent- Corporation (Mola) entered into an owner participation agreement for the Townequare project (a residential and ccmercial development in the Main/Pier project area of the Re,!avelopment ijrency). Certain property which was owned by third partieu was acquired by both Cie Agency and M31a. -, This property was co►nbined with adjacent property owned by Mola, property ! cured by the Agency atd property sold to the Agency by the City for $1,956,000 (see note 17). The resultant configuration was used for the development. During the year, Mola obtained a land draw to construct the project:. Ze Agency received $1,250,094 of this land draw representing its share of the r total proceeds which was computer] based upon the relative value of the Redevelopment Agency's land to the total land value in the project. This amowit is recorded as an "othfx financing source" in the Redevelrpment Agency's Capital Projects M—A. The total value of Redevelopment Agency owned land in the project is $1,956,000 which is recorded as "Land field for Resale" on the balance shoat of the Agency's Capital Projects Fw,,d. I%ben the individual residential units are ccnpleted and sold, prweeds will be distributed which will r aimburse the Redevelopment Agency for the ••S-naining value of its land which was not reiml=sed by the land draw r 0i1,250,000) and pity a 9% developers fee to Mola. The remaining proceeds E will be divided ixctween the Agemy and Wla lased on the value of the ! respF-�ctive land contributed by each party. I See independent auditor's report -63- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 i 17. OOMRfM§Z S AND CM:INGENCEtiti (LWr NUkD): ~" i d. 1988 Owner Participation Agreement-M)la Development Corporation: one year after the commercial units are completed, Mola will be obligated i to pay to the Agency 501 of the nr-t operating income of the cum( ercial units for the proceedimx3 year and on a monthly basis thereafter. e. 1983 Owner Participation Agreement Mola Development Corporation: In 1.983, the City, the Redevelopment Agency and Nbla Development Corporation (Mola) entered into an owner participation agreement relating to certain improvements in the Oakview project area of the Redevelegrent -- Agency. The Agency agreed to purchase certain public improvements Lrom Mola for $1,408,047 plus interest at 11% per annu-n- The purchase price was to be paid by a pledge of certain tax increment revenues in the project area. The Agency agreed to advance W the City $211,394 plus interest at 111 per annum of building, fees normally due at the tirre of occupation. In July, 1988, the Agency and Mola agreed that the Agency would pay Mola - $1,200,000 to settle the liability for the public improvements. It was also agreed that the amount of deferred development fees plum interest was $300,000. Mola paid $100,000 in July, 1988 and agreed to pay $81,843 — annually on June 30th 1989, 1990 and 1991 to nettle the deferred development fees. f. Owner Participation Agreemment-N/R Huntington Partners: � In October, 1987, the City, the Redevelopment Agency and N/R entered into _ an owner participation agreement which will provide for a residential development in the Frain/Pier project area of the Redevelopment Agency. N/R liuntington Partners loaned the City $300,000 for certain parcel acquisitions. The amount will be repaid by a pledge of a portion of tax , increment revemms generated by the imVrovements. See independent auditor's report -64- bo it CITY OF HUNTINGTON BEACH NOTES Tr' FINANCIAL STATLMENTS (continued) .TUNE 30, 1989 17, AND caNnNaaCM (OWINUED)' g. Owner Participation Agreemnent--•I(oury: i M In November, 1988, the City, the Redevelopment Agency and Robert Koury, an I , individual entered into an owner participation agreement which will provide .for the development of a parking structure and related carariercial and M retail space in the Main/Pier Project area of the Redevelopment Agency. The Redevelopment Agency purchased land from the City valued at $3,133,500. This sales price will be paid to the City by future tax incraramit revenues of the Main/Pier project area (see note 12). This land was combined with ,., other Redevelopment Agency owread land and lanai owrv_d by Koury to provide the space for the dv.elopment. The Agency purchased the land held by Koury for $1,235,000 and, secured the perfortrance of the agrearent by issuing Koury a deed of trust:. The Ardency agreed to construct a parking cr<arage anr3 3:,000 square feet of retail/commarci,al space. When the constr,=Uon is completed the Agency will sell interest in the retail/eccmercial apace for $1,235,000. The Agency will retain title to the parking structure. h. Disposition and Development Agreetit rot-Robert L. Mayer Corporation: 1n August, 1988, they Redevelopment Agency, the City and Robert L. Mayer- Corporation (Mayer) entered into a disposition and development agreement ' for the development of hotels, residential and commercial parcels in the Main/Pier project area. The development will take place in three different residential and six different cam:erci.al phases. 1 Mayer agreed to loan to the Agency $4,800,000 to relocate residents of a mobi lehcr a park in the area. As of June 30, 1989, $2,730,332 of the costs has►e been incurred and $461,535 cash has been received from Mayer. Mayer will ba repaid by the Agency pledging a portion of the tax increment- and transient occupancy tax revenues that the improvements generate. After the indebtedness is repaid, the Agency will also be liable to rebate to Mayer -' additional tax increment and transient occupwscy tax revenue generated by the project when the project is ,r npleted. y The Agency purchased land from the City for $22,400,000. This sales price will be repaid to the City by future tax increment revenues of the y Main/Pier project area. The land purchased fran the City which will be See independent auditor' s report -65-- CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 I 17. cc MI1MVT15 AND 030124�LES (CO T1'INUM: I I h. Disposition and Development Agreemmnt-Robert L.. Mayer Corporation: j used for the comaiercial portion of the development will be leased by the -- Agency to Weyer for 99 years. The remaining land will be used for the residential development. When the residential units are sold, the Agency will receive revenue- based on a specific schedule in the agreement. At June 30, 1989, $8,377,000 of the lard representing the residential portion is recorded as "Land Held for Resale" on the balance sheet of the Re:;.evelopw-nt Agency's Capital Projects E►uxl. i. Disposition and Development Agreement-California Resorts: -- In August, 1988, the Redm elorkXn--nt Agency, the City and California Resorts entered into a disposition and development agreement. The City sold the Redevelocx:►ent Agency certain land for $1,512,506. This will be repaid from future tax increment revenues. This land was combined with land owned by California Resorts and other third parties to consi:ruct a hotel. 18. JOINT VENIVM: In October, 1988, the City and the cities of Pomona, San Bernardino, Santa Ana and Oxnard formed the Big Independent Cities Excess Pool Joint Powers AuLhorlty, (BICrP) to finance- a claims payment pool for certain liability claims in .•xcess of $1,000,000 per claim. BICEP is governed by a Board of Directors which is composed of one director representing each City, appointed b- each Ci 's City to ep ng y, ppo ea ty y Council. A director must he a member of the City Councif or an official or staff person of the City which he or she represents. Any changes to the board must be approved by the current board manbers. Each participating City pays an insurance pre nium to BICEP which is used to fund the operating and debt service expenditures of BICEP. The participants' shares of the assets, liabilities and fund equity are as follows: See independent auditor' s report -66-- f�l� i .� CITY OF HUNTINGTON BEACH I ' NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 18. JOTNx VFN'11 M (C9(7N'rIN M): "1 Huntingdon Beach 21.43% Oxnard 15.620 San Bernardino 19.090 Santa Ana 30.270 Pomona 13.59% In December, 1988, BICEP issued $15,055,000 of Insurance Program Revenue Bonds, 1988A which was used to initiate the insurance pool. The interest rates on these bonds varies between 6.5% and 8.25% and are payable from premium payments from the participating cities. The premiums paid from the parLicipants represents the security for the debt Debt service requiremw-nts to maturity are as follows (in thousands): Year Ending June 30, Principal TntereEt Total 1990 $ 90 ;1,208 $1,296 1991 360 1,203 1,563 1992 390 1,178 1,568 3.993 425 11151 1,576 3.994 450 1,120 1,570 1995 485 1,087 1,572 1996 520 11050 1,570 1997 560 11010 1,570 1998 620 967 1,587 1999 670 916 1,508 2G00-2009 10,485 8,639 19,124 Total 1$ L055 1$ 9,531 3$ L566 The City's share of the liability is $3,226,287. The June 30, 1989 financial information for BICEP is as f011O s (expressed in thaw ands) ~� See independent auditor's report -67- -� VA i CITY OF HUNTINGTON T3F.ACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 18. JOWL' VEKIUM (QED): BICEP City Balance Sheet Total Share 'I Assets $16,711 $3,581 Liabilities 15,850 3,397 Equity 861 184 Revenue.and Expense Revenues 1,824 391 Expenses 1,268 272 Non-Operating Revenue 305 65 Expense Exces^ of. Revenue over 861 184 Expense 19. TAX AND REVENUE ANTICIPATIC.N ,W'=: On November 21, 1988 ;he City issued $5,000,000 of tax and revenue anticipation notes which bear interest at 4.5%. The entire principal and interest is due on IJoverrber 20, 1989. At year-end the City had accrued $200,000 of interest on these notes. 20. 07M R02ULR D DI!9CD09WM: I a. Budgetary Information: Expenditures exceeded appropriations at the departm-antal level in the funds shown as follows (expressed in thousands): i I ' � I See independent auditor's resort -68- I I I I I CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEKENTS (continued) JUNE 30, 1989 i 20. 01M RBQUrM DI,9M : w a. Budgetary Information: I .,,. General Rind City Council $ 15 City Administrator 10 City Treasurer 1 City Attorney 17 Fire 21 Police 183 i -- community Services 86 operating Transfer Out 126 Public Comrunications } City Administrator 9 Grants Economic Development 311 Parking Authority Operating Transfer Out 3 b. Other Financing Sources (Other): other financing sources (other) totalled $7,441,097 which included the following: N .$1,250,094 of proceeds from the sale of City owned property (see note 17) in the Main/Pier project area of the Redevelopment Agency which is recorded in the Capital Projects Fund of the Redevelolrment Agency. .$6,191,003 of proceeds were recorded in the General Fund from the sale of the City's right to own its cable television franchise. c. Deficit Retained Earnings: The Emerald Cove Housing Fund (an enterprise fund) had a deficit retained earnings of $4,601 at year-end. This deficit, will be funded in future years through increased rents. i f � i See independent auditor' s report -69- i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) .TUNE 30, 1989 20. O'rWR F.F7QUIRM DISC: d. Other Assets: - Other assets include the following (in thousands): Prepaid Expenses, General Fund a 13 Investment in Joint Venture, Self--Insurance Fund 184 an Internal Service Fund - House owned by Deferred Compensation Fund, 29 an Agency► Eland Total 5�226 -- 21. S[iSL'.HN&T EVF RM. t _ In August, 1989 the Civic Improvement Corporation issutA $15,025,000 of _ additional certificates of particiration to provide further funds for parking structure and other public improvements in the Main/Pier redeveloptwnt project area. As described in note 2, the Civic Iiprovemeent owns the Civic Center complex which represents the security for the certificates. The City will annually transfer sufficient monies to fwKl the debt service requirement3 on the certificates. The interest rates on trio: certificates vary between 5.9% and 7.0% with interest payable semi-- annually on February lat anid August let with principal maturing annually on August list. Debt service requirements to maturity are as follows: I See independent auditor's report -70- CITY OF HUNTINGTON BP.AC© NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1989 i 21. suwSt� EVENN. (00N`rM-=) Year Ending June 30, Principal Interest Total 1990 $ 0 $ 517 $ 517 1991 135 1,031 1,166 1992 180 1,021 1,201 1993 190 11010 1,200 1994 205 998 1,203 1995 215 985 1,200 1996 230 971 1,201 1997 245 955 1,200 1998 260 939 11199 1999 275 921 1,196 2000 295 902 1,197 2001 315 882 1,197 _. 2002 335 860 11195 2003 360 837 1,197 2004 385 811 1,196 2005-2020 11,400 12,369 23,769 Total 1$ 5,025 2S 6,009 . 4$ 1,034 See independent auditor' s report --71- I i i 1 � i i FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS AND ACCOUNT GROUPS .J t wJ 1 II , 1 I l I GENERAL FIM i The General Fund is used to account for all financial activity that is not required to i be accounced for in another fund. i i SCHEMnE B-1 CITY OF HJMVIC K BEACH GENERAL FUND j CIMPARAME BALANCE SfEEEr June 30, 1989 and 1988 (expressed .u, thotmands) I I A.SSMS" 1989 1988 Cash and invesbuents $ 21,279 $ 11,950 Cash with fiscal agent 224 191 Taxes receivable 20,164 11958 Accounts receivable 591 867 Interest receivable 106 89 Inventory 263 208 Advances to other funds 48,402 160,710 ^� Deposits and other assets 13 28 M j Due from other agencies 442 Due from other funds 505 -- T01M ASSETS $ 73,M7 $ 32,443 r TaA T rr*r s AND FUND BALANCE Accounts payable $ 1,528 $ 1,241 Accrued. liabilities 11614 31527 Deposits 701 1,200 Tax and revenue anticipation note payable 5,000 -- Defer ed revenue 35,161 4,126 IOTALTIABI I FC 44,r34 10,094 FUND BALANCES Preserved for inventory 2.63 208 Reserved for enctimtbrarnces 2,086 1,842 Reserved for long-term receivables L3,241 12,584 Reserved for capital projects 111453 1,350 Designated for other fvnri deficits - 873 � Designated for futum years expenditures 486 4,046 Unreserved% -' Undesignated r__.. 2,014 1,446 TOTAL FUND BALANCE 29,543 22,349 TOTAL LIABIIZTIES AND FUND BALANCE $ 73,547 $ 32,443 i -72- CnY OF Hf�'HPn=W HEAai SCHEME B--2 ¢NEBAL MID STATf3oa OF nM2A S, EmMr=WS AND CFANGES IN FUND BALV= - IIJC� .T AND ACML , For the year ended June 30, 1989 30, 1988 With eative totals for the year ended (e*ressed In thawands) 1989 variarr.� - Favorable 1988 Acta31 Unfavorable Aattial._ - - REVEZ&W` $ 22,440 $ 23,072 $ 632 $ 21,827 `raperty taxas 31,978 30,519 (1,459) 30,021 - Other tam 31366 3,650 284 3,276 Licenses and permits 2,570 2,458 (3.12) 2,335 Fines, forfeitures, arxi ties 61875 6,530 (345) 41346 Fmn use of money and pxq=ty 81894 8,542 (352) 7,920 - Frm otter die'' 5 197 5,886 689 3,200 Charges for current services � 1,077 481 1,410 other 81_�916 _ 81,734. 182 74C343 TOM TMENUFS - EnpEND1'I[>RES: Council 98 113 (1.5) 78 city 772 782 (10) 633 City Ac3m�^ fit-'star 31g 320 (1) 288 City Treasurer 398 415 (17) 376 City Attorney 199 170 29 128 _ city Clerk 3,215 2,956 259 2,856 Administrative Services Coaxunity Develqiment. 2,219 21110 109 2,015 Fire 32,701 12,722 (21) 11,840 Police 23,373 23,556 (183) 22,357 cxxnnunity Services 7,386 7,472 (86) 61809 _ Public Works18,558 16,505 2,053 15,835 N ttal 7,086 7,012 74 71040 Capital altlay 1,915 11026 889 977 Debt Service: 228 288 - - Interest - - TOM EKPENDnUM 78,467 -75.387 3,080_ _ 71,232 _ EXCESS OF F04ENUES MER 3,449 6.347 2,89R 3,111 - (UNDER) EXMIDI'IURES aIIM FjNANCING can = (USES): _ Operating transfers in 2,044 1,291 (6) 2,137 Operating transfers out (2,044) (6,191 (3.26) (2,337) Sale of Public Cable Television riots 6 .191 6„�191 r..� -.---- TDM O'1HM FINANG'IriG SOU 6M (USES) 5g447 5,3 135 857 EXCESS OF REVENUES AND MHER SOURCES OVER (MMM) MMMI'IUFES 254 AND anM USES 8,896 11,65° 2,- 2,745 FUND F ALRNCE - BEGINNI OF YEAR 22,349 22,349 11,350 ptesidu,a1 transfers , equity in 346 346 1 - Residual sty tmmfer-- cart (4,811 4 811) 22 34 9 26 780 29 543 9 2,763 49 c FUND BAIRICE - EJD OF YV a L---- _ - -73- 1 w} I "q �I RPHaAL RLVLN[1E "'�.:MS - Special revenue funds are used to account for poses revenues that are legally restricted to expenditure for particular purpo Gas Tax- This fund accounts for financial activity apportioned unddeer-rthe elated purpose Street and Iiig�hway Code of California. Expenditures may be made for y s allowable under the code. -- Sewer- This fund is used to account for :tees received from developers to construct new Sewer facilities. Planned Local Drainage- This fund is used to account for fees received from developers to irprove and upgrade the city s drainage system. public communications- This fund accounts for revenue received from cablccxnntelmitY- evision rights granted within the City limits. These monies must be spent oriented television. federal, state and ry Grants- This fund accoun for granttherfmoniese. received fromres these funds are �restricted _ agencies not accounted or in to the granting agencies requirements. park Acquisition and Develtrrent- This fuM is used for fees received form developers - to develop the City's park system. Narcotics Forfeiture- This fundeaccccou is ispesed 1«-to aaccofnt foen�pur�haseslved from i the State of Cal iftrnia that ,... i CM OF MUSNC7IM DAM SPOCIAL REVWJE FUNDS COMMM BAIPM SMr June 30, 1989 With cmqantive totals for June 30, 1988 (expressed in thousands) Mwuied Local ASSM Gas Tax Sewer Drainage Cash and investments $ 41474 $ 5,070 $ 31833 Interest rooeivable 20 23 18 Advarx>gs to other funds 550 62 406 Due from other agencies 287 -- 68 TOTAL AS5EI5 5,331 $ 51 155 4,325 ttnnrr�r� AND FUND BAIANCM r.rAArr.rrM: Accounts payable $ 217 $ - $ - Aocxtejd liabilities - - - Deposits 14 - - Deferred revenue 50 62 156 11M frcu other funds - - - Advanoes frm other funds - - - TOTAL 281 62 156 FM MANCES: Reserved for erxambrances 1,536 243 252 Reserved for long-term receivables 500 - 250 Reserved for re agreements - 26 397 Uril'e<*ved: Desiccated for future years expenditures 216 1,047 864 Urdmsigmted 2,798 3,777 2,406 TO►rAL FUND BALANCES 51050 5,093 4.169 TOTAL LTABILITIFS AND FUND BAIMCES 5,331 �, 5,135 $ 4,325 -74- y o I SCMDUIE C-1 i 1 Park . Acquisition � Public and Namotics � Ca!p m tiow Grants pevelopait Forfeiture 1989 1988 ' $ -- 51 $ - $ 3,007 $ 466 $ 16,901 $ 13,543 f 1 _ 9 2 73 67 - 1,172 3,110 -- 51300 41766 i 11289 ____..__.':__ 11644 437 $ 52 2 4Gl 6 126 ,^ 468 21,918 1� S 813 R I A $ 6 $ 163 $ 4 $ .. $ 390 $ 340 i 4 6 .. -- 10 19 � 14 14 - 3,110 - 31178 31452 505 - - 05 - _ - 140 10 674 3,114 � 4.297 3,965 -- 463 212 - 2,706 2,558 1,172 -- - 1,922 1,314 - .. - - 423 585 M, 5 - 11418 - 3,550 1,550 37 152 1,38 468 11,020- _ 88841 42 1,787 3,012 468 19,621 14,848 52 2 461 6,126 $ 468 23 9l8 18,813 i i '"' -75- ' CTrY OF HUNIING"IC>tN BEACH SPECIAL REVENUE RMS COMBINING MUF3MEl1P OF REVENUES, EXPIIdDMIMS AND CENMM IN FUM BALMK ES -- For the year ended June 30, 1989 With ompatative totals for the year ended Jum 30, 1988 (expre-used in thaisands) Planned kcal Gas Tax Sewer DrajnNe -- REVE NUES: Other truces $ - $ -- $ - Liaenras and permits - 249 - Fr m use of tom► and property 429 458 346 Frram other wgenCies 8,314 - 864 Fines, forfeitures and penalties - - TOM REVENUES 8,743 707 1,210 EXMDIIVft -- air,wit: City A& ni stxator - - - Police - - - Daommic Development - - - 0MUL dty services - - - Capital a-itlay 41127 236 392 Non-degartowital - 'IOM EXPENDITURES 4,127 236 392 EXCESS OF REVENUES OVER (UNL'!ER) E}0?ENDI'IURES 4,616 471 818 OIM FINANCIM SOURCES (USES): Operadxq transfers out (1,291 - EXCESS OF REVENUES AND OTHER SOMEM OVER MNI M) E}Cbwr1URES AND OTHER LOSES 3,325 471 818 FUND BAZANOFS - EfaGIIII'NZZvG OF YFAR 1,725 4,674 3,351 Residual equity transfers in - - - Residual equity transfers out: - 52 - FUND BMANCES - END OF YEAR 5 050 5 093 4 169 -76- 1 SCREWLEi Park Acquisition Public and Narcotics Totals -- ammmicaticm Grants Development. Tbrfeiture 1989 19„_. 88 217 $ 186 $ - $ _ $ 1,874 $ - $ 2,123 11072 9 477 696 34 21449 1,403 _ 3,513 -- 468 131179 71572 - - - - 3 226 3,990 2,570 522 17,968 1OJ 236 198 _ 198 17 5 . .» - 9 _ - 9 13 T - 748 - - 748 1,178 i -- 76 47 - 123 145 25 21856 31110 64 10,810 6,618 4 _ - 4 - 223 3,693 3,157 64 11,892 8,129 3 297 (587) 458 61076 21107 - - - (1,291 1 438 _. 3 297 (587) 458 4,785 669 39 2,091 2,875 93 14,848 14,179 -- - 782 - 782 - (601) (58) (83) (794) - 42 $ 1,787 3 012 468 19,621 14,848 I -•77-- i I i i i + SCHEOUM C--3 CITY OF HtJMMN BEAM SPECIAL REVENUE FUND CQMUME STATE' OF REVENUES, EXPENDI'I[MM AND CHANGES GES M FUND BALN%CES - EUD= AND ACMAL (Conthmied) �. For the year wded June 30, 1989 (expressed in thaisands) Var'ianoe - .. Favorable BLxiq t w Actual (Unfavorable) Rom: From use of money and property $ 220 $ 429 $ 209 "- Y)nn Other agewies 6,906 8,314 1,40B TOTAL REVENUES 7,126 8,743 1.617 EXPENDITURES: Capital cutlay 9,213 4,127 54086 j EXCESS OF MOM OVER (UNDER) EXPEND S' (2,087) 4,616 6,703 CUM F NUKMr USES: i Operating transfers out (1,300) (1,291) 9 EXCESS OF REVENUES OVER (ME*R) _ EXPENDI'nJRF.S AND MUM USES (31 387) 3,325 61712 FUND BALANCE - PEGINNING OF YEAR 1,725 1,725 FUND BAIAIXZ - END OF YEAR $ (1,662)$ 51050 $ 6,712 ` S Licenses and permits $ 220 $ 249 $ 29 Fran use of money and property 302 458 256 70M RE'VM&MS 522 707 185 F.'XF�IJDITURES: •- Capital outlay 684 236 448 EXCESS OF REVENUE OVER (UNDER) F.XPENDI'1MN (162) 471 633 FUND BALANCE - HE.-MMn OF YEAR 41674 4,674 - Rtsidual equity transfer out (52) (52) - FUND BALMCE - END OF YEAR $$ 4,460 $_ 5,093 $ 633 (OGN!'] WED) -78- ~r 1 SCHEOiIE C-3 CITY OF HUNI'1 Q=J BELCH GIATEKW OF REVFri Mj WMDTUUW AND CHANCES IN RIND BALANC�ES�.�- � AND ACIUAL jII.Rr(�.il d) For the year wxW June 30, 1989 (expressed in thm"zils) i T=L >rE2AINAGE Variance - Favorable Hudcet Actual (Unfavorable) REVEJUFS: From use of money and property $ 203 $ 346 $ 143 mm other agencies 650 864 214 TOM REVENUES 853 11210 357 F.}LP�3JD�I'I[JFfic'S: Capital. outlay 2,133 392 1,741 - MMSS OF REVMM OVER (LINM) bL�+I+PiDI'1[JF (1,280) 818 2,098 FUND BALAIKE - BEGINNIM OF YEAR 3,351 30351 -- - FUND BALANCE - 1rND OF YEAR $ 2,071 $ 4,169 $ 2,098 I -79- .T.iYG = C-3 CITY OF mJNmJGIw BEAM SPECIAL REVENUE FUNDS SING STATEMM OF REVENUES, E TEMrIUM AND CHMES IN FUND BALANCES - BUDGET AND ACIVAL � (Conthmied) For the year ended June 30, 1989 (wq xessqed in thousands) ' w R1RT�C COMMLINICAwrQNS Variance - Favorable Budget Actual nfawzable j REVENUES: Other taxes $ 209 $ 217 $ _ 8 From use of marry and property 9 --- 9 TOTAL REVENUES 218 226 8 �. 189 198 (9) City motor •-- Capital outlay 31 25 6 TroML EJ{ UIDMURES 220 223 (3) EXCESS OF REVENUE am (LVM) E MODMURE'S (2) 3 5 FUND BAIANcE - BEGINNIM OF YEAR 39 39 FUND BALANCE -- END Of YEAR , 37 42 -- 5 - r�r rsr REVENUES: 265 $ 477 $ 212 `. From use of money and property $ Fran other agencies 1,272 3, 2, - TOTAL REVENUES 11 537 , 3,990 2, 53 453_ FMEWJDI'JURES: Nar�rtmpj*al 4 4 Fr�ni.0 Develo 10 9 1 pment 4 74 (311) Police 10 a -- 11 CmuLmity Services 87 76 9 Capital c *-lay 5,952 2.856 66 TOL.T, PEMI'1TJR S 6,490 3,693 2,797 EXCESS '• RENEI UE OVER (UNDER) EXM7L (41953) 297 5,250 FUND BAIANCE - HDGIt u, OF YEAR 21091 2,091 Residiml equity transf�_. ,t (601) (001) FUND BALANCE -- EM OF YM $ 3,,463)j_ 1,787 $ 5,250 SG�iEDIJII: C-3 *� CITY OF '"f['INDIt7N BEACH I SPLCIAL Fl. F11;1D6 CarBIxlru srATEPM OF REVEI.,. ZDT.WRF5 AND I CHMK;ES IN FUND BALANCES - 1,--r Er AND AMIAL (Contimied) For the ycar e. June 30, 1989 (ennmsscd in thousands) I PA.�K Ap3CTlSLTION AND �'VEIDPMENP Varim = - FavoxWL Inf REVENUES: 874 8 yjDes� axed permits $ �,500 $ 11 696 $ 3 1;,rM us$ of money and propert 06F1 2,570 y 5G TORAL RCVEMM 2, r cmu mity ServiCes 102 47 55 Capital outlay 4„c698 3�]10 1.588 'IMAL EXPENDMIRES 4. 000 3,157 J,(A3 EXCESS OF RE.MAM OVER (UMM) 2 732) (587) _ £XFEIDMURES ( , 2,14-- FUND BALANCE - EECINN7M OF YEAR 2,875 2,875 - Resichsal equity transfer in 782 782 Resiaaal equity tramfer out (58)_ (58) BJUMCE - END OF YEAR $ 867 3.112 $2,145 I WAROL7PI REVENUES. 34 $ 34 Frain WO of money ply $ 610 $ - 488 (122) Ftan armor a:gew TOM REVENUES 610 522 (88) � -� EXPIIdDI7UF�: Capital outlay - 198 64 - 134 .J EXCESS DFL'lUFtES OVER 432 458 46 EXPENFUMD BALANCE - BDGIPLUM OF YEAR 93 93 -' Residual equity transfer out (83) (83) w FMD BALANCE - END OF YEAR $ 4?.2 $ 4613 � 45 (CDN WJED) ..pl» li I I I I SCHEOM C-3 C MY OF H]Nl<ING'm Enum SPECIAL REVENUE FUNDS OMMINIM STATE M OF REVENUES, 11rIL1M AND ~� CHANGES M FUND BALANCE'S - BUDGET AND AL`IrIAL (Contimled) For the year en&d June 30, 1989 (eqnwer4d in thmuwds) Variance -- nworable Budget� AcbAal (Lh�ffuvo�ablel ,_ REVENUES• Other taxes $ 209 $ 217 $ 8 yfo weer and permits 11720 2,123 403 Frm use of morW and property 1,567 2,449 882 MR odd agewies 9,4313 13,179 3,741 TOIAL REVENUES 12,934 17,96:-. 5,034 Nat-dep�trtal 4 4 -- City At1 mist ator 189 198 (9) Eeat 10 DsVelagM=r.:: 437 748 (311) police 10 9 1 a=Kmity Services 189 123 66 Clrpital outlay 22,909, 100810 12,099 'ti IAL I rm- 23,738 , 11,892 11,846 — EKCESS of REVENUE OVER (UNM) EiC ND (10JO4 6,076 1.66,890_ 01H R PMQJICING MM: �- Operating transfers out (1,300) (1,291) 9 EKCMS Or REVENUE: OVER _. (U NEER) E u-MU'IURE3 AND 01HER USES (32,104) 41785 16,889 FUND BALANCE - BBGMQMG OF YEAR 140848 14,848 - Resid'a: equity transfers in 782 782 -- Residual equity transfers Out (794) (794) - FUND BA1X=- - END OF YEAR $ 2,732 $ 19,621 $ 16,889 -82- 2f I w l airSEMM FCMD9 i Debt service funds are used to account for the accumulation of resources for the payment of general long-term debt. 1970_Park_ Bonds- This fund records the receipt and disbursement of property tax revenues to meet the debt service requirements of the 1970 Park Bonds, a general obligation bond. -i Radcvelgoent AcEVa- This fund records the property tax increment revenues received _.J due to Redevelopment projects. The tax increment will be used to repay the debt of the Redevelopment Agency. Public Facilities Oorpora*ion- This records the accumulation and disbursement of ironies required to meet the debt ►service requirements of the Huntington Beach Public Facilities corporation. Larking kt writy- :Min fund re►nrds the accumulation and disbursement of monies to ' meet the debt service requirements of the Parking Authority of the City of Huntington Beach. Public Financing Authority- This fund records the accumulation and disbursement of monies to meet the debt: service requirements of the Huntington Beach Public Financing Authority. Reservoir-[till Assessment District- This fund records the accumulation and disbursements of monies to meet the debt service requirements of the Reservoir Hill Assessment Bonds. lip 3b CITY OF HMMU N BEAM f DFBr SERVICE FMW 7 OOKBDnM BAIL SHM JUM 30, 1989 With oapirative totals for June 30, 1988 (eWres ad in thouew ds) i 1970 Park laadevelopment Cash and investm t8 $ 180 $ 3,714 Omh with fish. agent - - Taxes receivable 14 34 i 7*Aweet receivable 1 17 Mean es to other funas - _ .- 20M ASSES 195 3,765 r,TABIr TMES AND RM BALANCE T?ATF�: Deferred revenue w � FUND BAtVKEB: ^- Reawv+ed for long-term receivable - .. Peommed for deft eerviae 195 3,765 ' 0IRL FZA1D HAIANCES 195 3,765 TOOL TLU MUS AND FM BALANM 195 3,765 SaSUJIE D-1 I f i Public Civic Public l --� Ftwilities Parking Firmwing Totals myrrraticn Autria_rity annaoratian 8Ijqjgri_q 1989 l $ .- $ - $ - $ 3,894 $ 2,644 630 11114 1,815 51510 9,069 15,153 - - - 48 113 20 32 4 82 156 96 _ - 21,340 21,340 15,237 8g0 1,146 1 1 819 26,932 34,507 33 243 { 7 J 361 361 368 21,340 21,340 _ 650 1,146 1,819 5,231 -IL2,806 32,875 +, 650 1,146 11819 26,571 34,146 32,875 6650 1,146 1 819 26,932 34 507 3_ 3 243 I � J -84- 1 CrPY OF HJIrI'1NG w HMM I BOT SEWICE FUCMS ! OamannNG SMTEM Nr OF REVENUES, E{3ENDI7LM AND CiWCES 3N FUND BhMWS For the year ended June 30, 1989 1 With comarative tctals for JLme 300, 1988 (mTressed in VwusWVIB) { � p I 1970 Park RedevelCPmmt ARM REVEIJM: $ 516 $ 2,782 15 298 ftm use of and Ply — ----- i ToTP1LJ 3MVENUES 531 3,080 E F8NDITURES s cmzvnt: _ NM-&pruw*al _ Dot sarvice' 310 212 princival 156 �-.. 1.744 TOTAL 466 1,956 EIS OF REVERM OVER (UMM) EKPSNDrIURM 65 1,324 _ unM F]]oNam m (Um): _ PMcoeeds of JaV-term debt Cpexatinq trmnSfera in Opexatinq transfers curt - - Tom%L OTM Fnvjxmr. 3UURC"E5 (USES) - - --- -= MMS OF DES AND OIRM SaMM65 1,124 OVER E?�I�3dD1'IS]RFS AND Ornm USES -- FfJt+iD BUANC 'S - wcne 33G OF YEAR 130 2,641 _ Resielml equity transfer cut Rm HAYANI'3+5 - END OF YEAR -85- 3 _. SaW= o-2 1 i Public Civic Public , Fa�cilitiM Parkirg Fitwroim 7bt�ls t{� Atttttioritr tiara Autt=Itt`C 19_�._._ 198�$ .-.- $ $ _ , .. $ - $ 31298 $ 2#057 83 147 2,590 3,197. 674 6,490 2,731 59 -- $3 147 �.2_,�590 .._.. ----��- 55 98 230 125 220 265 11362 975 159 39 11521 2.1$0 _ 5L799 5 389 -- --164 164 11743. 2,500 7 e.216 3.618 j i 330 $1 (1,594) 90 726 8$7 26,313 _) 399 - 11601 - 2,000 1�874 f3I _ --..� -- 601 _ 1,997 28,187 69 (84) 7 90 11271 27,300 y 581 1,230 11812 26,481 32,875 6,925 (1,3501 7 65Q 1,146 1,819 26,571 34 146 �$3_:Z 875 �- -86— SCHEMU D-3 CMY OF HURMV= EEACH OBI` SERVICE FUNDS 036MM STA'THOU OF H'VFfMS, Ea '�DI'J[Jlt S AND .- QHM S IN FUND BAJA CES - BUD= AND AMML For the year erred Jim 30, 1989 (wq,Tmsad in UmUsands) 1920 am am i Variance - Favorable .�. Buc3gst ACbml &favorable) REVENUES: Property 465 $ 516 $ 51 ^ From use of money and property 5 15 10 TOTAL REVENUES 470 531 61 pl 310 310 Inbsreat 179 1% 23 j TOM EXEMJDMUIRES 489 4" 23 j EMMW OF REVENUE OVER (UMM) EXPwD1'I[ (19) 65 84 FUM BALANCE -- BEGINNIM OF YEAR 130 130 FUND BALANCE - M OF YEAR fiL 112 ..�1195 �- I REVENUES: - PYopesty taxes $ 1,756 $ 21782 $ 1,026 Fig vae of money and property 174 298 124 %rfhL REVENUES 1,930 31080 11150 ` EXPENDMIJAMM: Principal 212 212 - - Ilterest 2,447 1,744 703 '!OM EXPENDInI M'c 2,659 1,956 703 EXCESS OF REVENUES OW (MM) F:XPEITDI'um (729) 11124 11853 - FUND BALANCE - BAGIZ+II+T M OF YEAR 2,641 2,641 FUM BALANCE - END OF YEAR $ 1,912 3,765 1,853 -8i- Crr5t CIF HURMIGM BEACH SC HEDUM D-3 DMI SEMCE FUNDS a:MBDMG &err OP �F , F30yE MMURF.S AND 1 CHANGES IN FUND BALANCES — BUDGET' AND ACTUAL ror the year erded June 30, 1989 (wgwe clad in thmmarx%) FA�i1TIF� 0�1aN Variance - � F'a�wrable .� aet Actual c�lnfavcrable) REv KIES• Fran uae of mmW and property $ B4 5 59 1__ 2B Principal 230 230 - j Interest 169 159 10 1 `1'OM.., 399 389 10 EXCESS OF REVENUE OVER ( ) _ 315 (330) (15) OTHER F7NANCMC SOURCES: Oparsting transfers in 399 399 - fliCESS OF REVENUE AND OTHER SOURCES am (UNDM) ErQ?ENDI'ItJRES 84 69 (15) FLM DAWKS - RMINNIM or YEAR 581 581 FtM BALAPKM - END OF YM $ 665 $ 650 (15) MOM REVENt)FS. - Fran use of money and p=p m ty $ 255 $ 83 172 Prim-ipal 125 125 �! Intarmt - 39 (39) 'LOOM ECFEdDITURE.S 12F,, 164 39) FPS OF REVENUE OVER ' . (LiH[ t) EiD1`IVRF 130 (81) 211 I OTK R FXMMKMVG SOURCES: ' ] Operating transfer art (3) (3) ,1 EXCESS OF REVENUE AND OniER SOURM J am (UNDER) F- 130 (84) (214) FUND BhLVKZ - BEGINNING OF YEAR 1,230 1`30 - FUND BALANCE — END OF YEAR $ 1,360 1,146 (214) (Owrmum) —88— SCHEDULE D-3 C.L'y OF HEJNI'IrIGM BEACH DEBT SERVICE FUNDS aMMMC S"ZA1'F3 M OF REVENUES, E?0WiDrIURES AND CHANZS IN FUND BALANCES - BUDGEP AND ACIUAL (oott�irmdj For the Imar ended June 30, 1989 (exptww d in thmmnds) BIZ Variarm - Favmvble BLxkjet Actual jaWavarable) REVENUES• — Me uae of m3ney and pareperty $ 160 $ 147 $ _( 'ir�ipa3. 220 220 - IrTbatmst 11515 1,521 -- 6) TOM 1,735 1,741 (6) EK=W OF REVF'm am (L1NM) (11575) (1,594) (19) Operating transfers in 1,700 1,60109) ENCESS OF REVERM AND SOIL OK (L1NDF3<ij OlM 7 (118) FERID BAWK - BE31+SrJnG OF YEAR 1412 _ _ 1,832 FUND BALANCE - END OF YEAR $ 1,937 14819 $ (118) _ i i Fina use Of =P-y and property $ 2,590 2,590 $ -- Nan--dep Unntal 55 55 - Principat 265 265 - Intermt 2,180 2,180 - T TOTAL EMMURES 2,500 2- ,5M E(COBS OF RhYr] UES OVER 90 90 - FUND M ANM - BMIr Nnv OF YEAR 26,481 26,481 - RM BALANCE - EM OF YEAR $ 26,571 $ 26,571 1 - -89- -- b3 7 i cny OF HURMOM MCH OW SERVICE FUNDS ammum seam ' OF Fib, FJCPFIIDI'I['. AND COMM IN FUND BALANCES - f 'r AND AG'I[1AY, (o ttin used) Fbr the year ended JUM 30, 1989 (wqrewed In Uiousamls) I ' Variance - -A Favorable Acdul. (Unfavorable) f pupwty tamest $ 21221 $ 31298 $ 110.77 _ From use of mmW and properly 3,268 31192 (76) 'IOML MVENUES 5,489 6,490 1,001 -� FX�amr - N 55 55 principal 1,362 11362 - mrtermt 6,490 S,799 691 -� TOTAL 7,907 7,216 691 EXCEW OF REVFME CIU' (UNDER) F1Z7I'IURF+S (2,418) (726) �1.,_692 -� ClDW FIB SOURCES (USES): Operating transfers in 21099 2,000 (99) Operating tramfers out - (3) (3) 70TAL 01M 'FINA KMM -� 9mm= (USES) 2,099 18997 (102) 7 EXCESS OF REVENUE AND CTM EXFEr1DI'It AND OTM USES (319) 1,271 1,590 FUM BALANCE - BE7GIl?IN6 OF YEAR 32,875 32.875 - FUND BALANCE - END OF YEAR $ 32,556 $ 34,146 1,590 l i -go- i 1 i i 1 i i _ CAPIML MUTECTS 1 . i Capital projects funds are used to account for the aoTdsition and construction of major capital facilities other than those financed by proprietary funds. Parking Sh ucture- This fund acwunta for the construction of parking garages from proceeds of the Huntington Beach Civic Uprovement Corporation Certificates of -' Participation. Redevelopment NEng ►- This fund accounts for acquisition and eonatruptimn activity in the five project areas. Low-Incase Housing- This fund acquits for a0cluisition and eonstrur-lion activity for low-incase housing. The California Health and Safety Cade regv.ires that 20% of all tax increment revenue received by the Redevelopment Agency be set aside in this fund for low-income housing deve:opment. Public Facilities Corporati-xi- This fund accounts for major capital improvements made to the Library emplex by- the Huntington Beach Public Facilities Corporation. - Parking Authority- This fund accounts for capital improvements nude to certain off- street beach parking facilities. Capital 1wrovement Fund- This fund accounts for major capital inprovements authorized by the City Cot=il. Reservoir Hill Assessment District- This fund accounts for the capital improvements rw3e from the proceeds of the Reservoir Hill Assessment District Bortids 88-1. .J V )� � i CITY OF H*n NMt:H BEMN CAPITAL PR33E= FUNDS CMGM YG MANCE steer Ii JUne 30, 1989 With tive totals for 30 �nl in thaxsaryrls ' 1988 (� ) Prarking Redevelopment StaCueb m Ate_ ASTS Cash and invest mts $ 21665 $ 12,919 Cash with fiscal agent - - Taxis receivable - - i Ac=xmts receivable - 2,350 IntAmwt remivable 20 75 Advarxm to other fps 71425 Lard held for resale 19.549 IMALL ASSETS $ 10,_110 $ 3 4,893 ! AND FUND BALANCES - LL&I%TLTrn . Amounts payable $ - $ 124 Accrued liabilities - g Deferred rwmwo 675 - -- Notes PWI&le - - TOTAL LIAHIMME5 675 132 FUND BALWES: - Reserved for land held for resale - 19,549 Reserved for =r tinuirng projects 2,685 12,862 Wme=ved For la g-te= receivables 6,750 2,350 TOTAL FUND BAIL 9,435 34,761 MI AL T TA AND Fjd BAI jN(E $ 10,110 $ 34,893 Vlo - - 'No. SOHEMU E-1 . l 1 Reservoir Iod Public Hill 3ties Puidig Capital Ffa.O tb�osaticn ltittx:arftY 7ncxvv�e�t �istric� _ 1989 5,260 $ r $ -- $ 3,394 $ - $ 24,238 $ 30,856 148 153 - 563 864 139 j 8 - - - - 8 24 -+ - - - - - 2,F350 - 6 5 1 7 - 114 148 - 7,425 - "' 19,549 41854 1 -� 5 274 153 154 $ 3,401 563 .1 54LM LI§LO21 129 $ 87 •. - .. - . 8 17 675 rq ---�! 8L - - 5 - 812 922 J w r w - r 19,549 4,854 51274 153 154 3,396 563 25,087 30,245 - - - - 91100 .� 5,274 153 154 3,396 663 53,736 35,099 5,274 $ 153 154 $ 3,401 $ 563 548 36 021 J i J -92- l� i CITY OF "s1JNPlI4' MN MACH C K!I"rAI+ FROJE S FUNDS - CCCBINING STkTkX dT OF RF.VDUM, EXPENDITURES AND C.M IN F[ M BALANCE^ For 'd* year ended June 30, 1989 With c c v**amtive totals for June 30, 1988 (e)pressed in thousands) W king Fadevelopment �- Sttrucbne Ager Y AVENUES: •P=Pw w Fry $ m um of money and property 189 951 Cantributicro from property owners _...,,� - 1EVEM89 189 951 EILMIrT1[]19MR: City Council - 43 .. City Administrator - 324 City Treasurer - 2 City Atb=ney - 627 City Clerk - 123 !d~aiJilat:ratiVe Services r 453 :.. Cummity DaVeILTmmt - 1,535 Public Wwkm - 388 Nan-departmental - 17 Copital outlay 2,880 26,648 Debt Setvive: prir:cip�a7, - 41,984 2,315 'IC7Ia1L 2,880 37,459 ECM OF REVERM MER (UNDER) UITUFMB (2,691) _ _ (36,508) 01M PIZiAN= SCEMCES (USFM) : ^ Operating transrerS in - - Ad`ranoes from other fu rds - 44,677 Proaaeft of lanq-term debt -- 6,463 Operating transfers out - w Gain on sale of land r w Other - 1,250 'n7in C1Liim FaiANCIIG sa (USES) - 52,390 E7OCM OF ME NUM AND OrMM SaMM OVER (UNM) F. AND omml USES (2,691) 15,882 FUND BUANM - BMINNM3 OF YFAR 12,126 18,679 Fasidaa3 equity transfers in - - Residol equity transfers out, - FUND BhLV ' - END OF YEAR $ 9,435 34.L761 -93- -P6- t:t 65G'g—Ef 9EL E5 E99 96£�rE- VT NY"Ty y�ZTs"� P98'E -- P9B'E STT'8T 660'S£ - - 90Z OPT 8PL'£ C (I P86'9T EEI'ST L99 (890 PST £T 98S'T E08 Z 6T6 - - ELT - - _' 9-9CIT LZL E9P'9 8UT'TZ EEG'9P - - -- - 9yE'T ; .. ELT - - ELT - 6T9 I P 98L 8£ L99 89P . . 6T ="'""` pE� 06L�9 £5L Z 6£T T M bZ - 68b EZL�T YS Z •• - - - 9Eti LEO'S - - - - ES '161'Z £SP'T£ 6ET'T M to ST LT OLE 88E TEV ESP LZT AZT L69 LZ9 ZZ -• - - - - 96Z Pz£ Z9 6P 1.. TL6'T L9�66 E — 96L T ME 8 El 6TL � . PS9 T__._ KFII 085'T ETL't SE � P6Z � 9 - $ �- � Ebb $ L T6E $ 009 $ LOT 896T 686T :PT—Fa Zan up'j' r GTW.?AL MTft ftq*MU ffaF;TIF'AU QWCUI L Tmi o'Ftqnd !'"I z-21 �I I �I i i Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the City is to ! recover the costs of providing the goods or services to the general public on a continuing basis be financed or recovered through user charges or where the City desires a periodic determination of net income. I Water Utility- This accounts for the City's water service to residents and businesses. Meadowlark Golf c7ouraL- This furl accounts for the operations of a City-owned golf course which is leased to a private corporation which pays the City rent based on the operation's total reveres. Emerald Cove Housing- This fund is used to account for the operation of a senior citizen apartment caplex. I J a CxTY OF H1NFI MM WACK SSE FUNDS COKBnMr, BALANCE SHEET June 30, 1989 With otx:rparative totals for June 30, 1988 (expressed in thmwands) Water Itti1gy ASSETS Ct ' ASSETS: Cash and te--m invents $ 71200 i Accounts receivable 11146 AncxuM interest receivable 34 - Unbilled receivables 2,373 TOTAL CURRM ASSETS 9,753 01M ASSETS: Cash with fiscal agent 614 Advances to other funds 1,417 TOTAL OTHER ASMSI S 2,031 PUM, PRDPEW AND EQUIRMC (AT COST): Land 391 Buildings 971 T MadWwry and equipment 49,205 50,567 Loss acamIl atM depreciation (22,129) 70ML '.nAW, MPEIUY AND EQUIfi'r = 28,438 TOTAL ASSETS 40 222 TTA `LI'TIIS AND FUND M7=Y (x)RRM LIAt LLSIII : Acoour►ts payable $ 11306 - Accrued payxoll 36 Accrued interest 6 Deposits 1,085 -- Current portion of long-term debt 241 TOTAL CUlamw MAXII 12ZES 2,674 Buds payable 703 Note payable 166 Oerti.ficatos of Participation - OMPM atsd absences payable 128 Advances to other funds - Ims anmit portion (241) TOTAL ICNG-Tti'R4 MW 756 TOTAL ISABI T'f�TES 3,430 FUND EQLM: Oontributed Capital. 34,884 Retained earnings (deficit) : Lid 1,908 70ML FM IMUITY 36,792 IML LIAULl'TIES AND FUND BWM $ 40,222 -95- ! SAIL' F-1 7 maacbwla& Emraid Golf cme T AU ctur a a Homing 1989 1988 $ 1,o01 $ 1,582 $ 9,783 $ 61522 ' - - 1,146 472 5 19 58 40 - .,_ - 1,373 1,218 1,006 11601 12,360 8.252 322 936 1,448 _ - - _ 1,417 1,289 322 _ 2,353 2,737 3,052 1,A89 4,732 41732 260 4,1.02 5,333 5,333 359 - 49,5" 49,134 3,671 51391 59,629 59,199 (518) �328) ,- (22,975) (21,603) -' 3,353 5,063 36,654 37.596 4,159 6,906 $ 51,367 $ 48,58E' - $ - $ 35 $ 3.,321 $ 814 - - 35 95 41 37 84 79 - 24 1,109 11416 .„�29 - 270 260 10 76 2,820 2,664 - - 703 869 11700 - 1,866 1,949 - 4,536 41535 41523 - 128 219 944 944 944 (29) - 270 (260) 1,671 5,480 7,907 8,4144 1,741 5,556 10,727 10,808 J 1,267 1,435 37,586 37,148 J 1,3251 5 3.054 629 2,418 1j430 40,640 37Z777 4,359 6,986 9 51,367 $ 48,585 -96- I. � J CJ. y OF murim©m HF. m i ERIEPI RM FUNDS OGM8I2nm SMTMM OF F VMM, E ffMES AND CHNGM IN RE.PAMM EARNMIS For the year ended Mme 30, 1989 Rith c miparative totals for year erred June 30, 1980 (mgmessed in thousands) _ I Water OFERATIM IMVENUES: -- Water sales $ 12,467 Rm"�ale - other tw4mim 1A 016 110M 01MATOG REVENUES _ 13,483 OPEPATDG F PENSM:Water pmdMom 21 �- 807 inistration Adw 882 Enginewing 1,282 Pzv&wticn 2,490 MAntenanoe 956 Water mabus 520 Oa-1 ibuti.al to General Fund in lieu of taxes 1,829 De�trecie►tian 1,275 710'.L'AL OPERAMC EXPENSES 32,041 - OPE WMC ]I =m (LOSS) 1,442 NOR-OPERAMMr. FOM4LW (fly); Inbaroti inCCMe 780 iiterefft expense (31) TOTAL NW-OPERA7TIM REVEMM (EVENSES) 749 NEI! 140:tM 21191 REMIM EARMM (C£PrCIT) - BDGM1 C OF YEAR (283_) RE'x' TM EARNINM - END OF YEAR $ 1,908 ` -97- �LI SCfEMU M. 7 I Meadowlark Em ald Golf can Zbtals .. 1989 -- 1988 $ $ 12,467 9,698 283 604 887 911 -- --------- - -- 3 _ 11019 449 283 607 14,373 ,058 I i 21807 2,988 222 11104 581 - 11282 827 2,490 2,123 " 47 11003 1,167 520 595 11829 11390 ._. 90 1,.392 1,353 27 359 12,427 11,024 �-�,— 256 �248 14946 34 86 214 11080 771 - (121:) (449) _ 601 (612) ,(35) 235 479 159 221 13 21425 193 930 -(18) 629 436 1151 5) $ 3,054 6+29 i -98- Q CrN OF 1 URrINOxCN BEACH ENrE rdVJ E FUNDS STATENEC1r OF CHAMES IN FIHANCIAL POSMON r• FUr the year erred Jtme 30, 1989 With cmVarative totals for y9ar 04W Jute 30, 1988 ' (expressed in ttxxn n6A) Water Vti].itZ► SUCMM OF WMGWIG C UTrAL: Opts"d"• Not in== $ 20,191 low on sale of plant, propetty and equipment 9 Depa�eci artian 1,275 Working capital provided by operations 3,475 Sale of plant, property and equiponent - Omtributims received 376 Increase in csttifieat:es of participation -- Decrease in restricted assets 151 Increase in cmperwated obtmrAw 9 TOM FAXMC ES OF WORK[NG CAPITAL 4,011 USrS CF WORKING CAP1'm-. lrc waw in per, Property and eCNipowt 459 -- Decrease in lanq-term rates 64 De=wm in lcrq-tern bonds 166 Immv eee in advarxm from other ftmds 128 Y*Lxeaoe in restricted asmts - Decrease in eanpenaated absences - 70ML USES OF WOR Mn CAPITAL 817 NET SASE IN WOWUM CAP17M $ 3,194 =mom of NET IN ,, (a sE) IN MM= CAP11ML: Cash and term $ 2,533 Interest reoeivable 10 - Acwmft receivable 676 Unbilled receivables 155 - Amounts payable (530) . Due tc aater funds 59 Interest payable Deposits J0 )7 Current portion of lag-terns debt (10) NET INaFmm IN WCRKa G CAPITAL 3,194 -99- " • 1 I 1 Moblowlaatk E nemld Golf Clore _ Totals . ; coirse HOWLM 1989 1988 i I $ 221 $ 13 $ 2,425 $ 193 - 9 12 27 90 1,392 IS 353 248 103 31826 1,558 5 62 4.38 20,4% 7 - 13 13 13 361 512 70 - 9 - 248 539 4,798 4,142 - - 459 21720 29 - 93 79 - - 166 -- __ .. - 128 1,118 - 34 6 29 - 846 3,957 0 219 $ 539 $ 31952 185 $ 218 $ 510 $ 30261 $ 452 -- 8 18 10 (2) 674 (9) - 155 289 23 (507) 66 59 (33) 1 - (5) 6 307 (393) (10) (3) $ 219 $ 539 $ 3,952 $ 185 r -100- J l ) I I INrERN1L SERVICE MON i , Internal service funds are used to account for the financing of goods or services i provided by onc• City deMrtraent to others on a cost relAxuoement. basis. Self Insurance- This fund accounts for the City's self insurance activities (liability, health and workers neation). Mq� p=t Pimlacement-- This fund accounts for the purchase and operation of certain vehicles and eguuipment leawA to City departments. i 1 i i 0 I CM OF HUM7NMM HEMM im7ERM iL SERVICE F LIM CaGMMG HALMM SHEEc .- JUrie 30, 1989 With aampazative totals for JU Me 30, 1988 (expnwm d in thuds) ASS Self t Totals -. Itt�udn FaeplaaeAt,ent 1989 1988__ QOtEffI' ASSET: Chah &-d browbumts $ 8,264 $ 31389 $ 11,653 $ 9,917 Aoo=*z receivable 4 - 4 Ammed interact receivable 42 63 105 52 T07AL DTI' ASi4M 8,310 3,452 _11,762 9,969 '- On= ASSETS: investmwt in joint venture M4 - 184 Owh With fiscal &germ — 4,822 4,822 TOM O TM ASSETS 184 4,822. 5,006 PLANT, PADPFRTY AND E9QUIPMERr (AT CWr) Pbddxwy and equipment - 22,342 22,342 21,267 tam acamlated dept bdatim - MC440) J11,440 (10,128 '- 'IO'M PLANT, PADPF W AND EQU aMW - 10,902 _0,902 11,1.39 70M ASSETS 8,494 176 27 670 f 21,108 1 _I �i -101- .i SCHW= G-1 1 1 1 TTARTTTTTF`_4 AND FUND DQMW II -� Self DglliplOWIt Totals Ix19li1Cance Miao t ]Q89 IM CEUM i INM.TT v : Acca vrts payable $ 160 y 19 $ 179 $ 219 Accrued Payroll 1 Accrued ifltet�e t 36 43 225 125 gtrnent pmtian of larg-rterm debt - 73 73 73 WIRL CLMFdw LIABnxl7w 196 217 413 335 OL'= T?ABILITMES: Hoge payable - 336 336 409 w0t3aM coapesrat.1 claims 3,901 - 31901 30977 _ Health claimm 192 - 192 192 General liability claims 31329 - 3,329 3,167 certificates of pszticipaticn - 50,510 5,510 Leers aus'za* pdrtim - (73) (73 (73) TOERL 0ITOM TXAR"T= 7,422 5,773 13,195 7,672 ZCTI'AL 1SA3 I1'I� - 7,618, 51990 13,608 8,007 FEW BMM, QoCttribAed capital - 12,654 12,654 12,214 Alined earning 876 532 1,408 887 TMt FUND M017Y 876 13,186 14,062 L1,101 TOI'AI, LIA8lI1'1'IFS AND FUND EQUITY 8 494 19 176 2'1 670 21 108 i ff � -102- V i ,OW i SCHE= c-2 Crry OF HMG7NG= BLUR OCeIIMiS S'A'IEl V OF TVAMM, FEES ... ANJ CHANGES IN MMUM EARNINGS For the year twded JUm 30, 1989 With am paiative totals for June 30, 1988 (eMLv seed in thmmards) Self Equiprtr Totals Insurance RepLagement 1989 1988 OPERATDG ems: - Cliargm for service 7,056 1,780 8,936 8,477 OPERATIM EXFENSES: A i.,iai ra.riram, and gen=&1 1,531 1,746 31277 21320 works= ration claim 1,491 - 1,491 2,245 Employee madical claims 21095 - 2,095 11834 Liability claim 11127 -- 11127 914 Drapreciatian - _ 1,741 1,741 1,862 ... ',OTRL OP'EPATIM EXP NSM 6,244 3,487 9,731 9,175 OPERiTI G n (ISS) 812 (1,707) (895) 698 IMMMM: Interest in.-Am 753 479 1,232 817 Joint venbMA 184 - 184 'O'I?1L NCH-OFF RL''JD&W � 937 479 1,416 817 NEr niam (II w) 11749 (1,228) 521 119 SING OF YEAR (873) 1,760 887 768 FMIAIM EARNINraS END OF YEAR 876 532 1,408 887 J -103-- V I MY OF HMMOM BE ACH SCHM E G-3 nnMFML SERVICE FUNDS CAI NING STATEKEMr OF CHM4GES IN FINM4CM FOSMCrt For the year ended Jurw 30, 1989 With owparative totals for June 30, 1988 (wgwessed in tlxiuea ub) Self Eg. Totals Insurance 1989 1988 -- OF�WOK[QNG CAPITAL: Net inom a (loss) $ 11749 $ (11228) $ 521 $ 119 ._ Depreciation -- 1,741 1,741 1,862 Toss on sale of plant property and - _ 15 15 so Wwking capitalided (tined) by operations 1,749 528 21277 2,061 Ir=ease in self-insurance claims payable - - - 163 We of plant, prgm=ty and equiptaent -- 60 60 97 Coatributicm received - 819 819 - In%mmase in ceftificates of Partiaipatian -- 5,510 5,510 -- Increaw in claims payable 86 - 86 Ilxardue in notes payable - - 336 0ontributions received _ - � 420 { ` ZC1M SOURCES OF WOMM G CAPITAL 1,835 6,P17 8,752 3,077 USES OF WCRKD G CAPITAL: Amj sition of plant, property and equipment - 11580 1,580 21299 Increase In restricted assets - 40,822 4,822 - Decrease in longue= debt - 73 73 - TnCre=- in investment in joint venture ].Ba - 184 - Disposition of feixed assets acquired with cmtaribited capi tal - 379 379 7QTAL' USES OF WoFaaw CAPITAL 184 6,854 7,038 2,299 NEr 1NCRVM (DECREASE) IN WORKIM CAPITAL 3 L651 63 1,71.4 778 ELEMMS OF INCRV0E (DECREASE) -" IN WORQNG (AP17ALS Casts and inveffbwnts 1,755 $ (19) $ 11736 $ 733 interest re ceivrable 8 45 53 11 -� Acemmts receivable 4 - 4 (16) Accounts payable (123) 162 39 93 Amxued payroll. 7 - 7 (43) Interest payable ._._. - (125) - NEr INCREASE (DECREASE) IN VMFdC O CAPITAL 1,651 63 1 714 778 I -104- �S5 TAM AND AGOWY FUNDS A9 J Trust and Agency funds are used to account for assets held by the City as an agent for individuals, private organizations of other governments. Ralovee Deferred Oxwerqation Fund- This fund accounts for the deposit of monies authorized by atployees to be withheld fran salaries for payment at a later date. The J City retains title to the funds until the employee withdraws the f:Tnds, which may not be done until employment is terminated, or any later mate. Retiree Medical T_nstirance ft-d- r'his fund accounts for the experAi.ture of. City provided benefits for medical insurance coverage for retired enployaes. i I I t I ; i ti W LM. .s. .l: Y y .. '"�.T:l�'I:✓,1 'dr� ] f7i: rY...,Y.,y r v -___ saa- M IJE, H-1 CI'I'X OF{�+FNtdI'IZIGI 1 BEAM AMMY MM r CCIMM-n SI'ATEMU Or COMES IN ASSE?S VM T-TA BII = For the year ended June 30, 19B9 (aq=msJ in thausan�) July 1, June 30, ... 1988 Additions Dqductions 1989 �F0 CCt��pN ASSETS: Cash with fiFial ardent $ 9,266 $ 1,871 $ 965 $ 101 372 Notes receivable, net of allowance for am=tts ln=llectible 1,859 1,620 424 3,255 Other P-.Sets 29 -- - 29 _ WAL AS13MS S 11,154 S 31691 $ 1,389 $ 13,456 Notes payable $ 28 $ - $ 1 $ 27 Employee deferred coupensati.on 11,126 21848 545 13 j 429 T0I'AL, F IIAMT 11,154 $ 2,848 6 13,456 MMMTI I ASSFJI'S: . Cash $ $ 626 $ 53 $ 573 TOM ASSETS t26 $ 53 $ 573 LIAHIIXIU-S: Claim payable 626 $ 53 A 573 'DOTAL LI1'_B' I= $ _ $ 626 $ 53 $ 573 -105- -- 'AIM 'i' 7 ., r i'I'• i r. ;.%. < 4' rl' ,rN.. r ' r rta'. r ' r 1F' ! ;1. r . . R .,�,� ._.��1''''�s ••'•,'�.�• i.tsR.s• :�...: _' - ii:f:ta'..::,a::lGr:1u:':.+�:1' 1.�••�:i'"t__._..s�.i.:u'�.'.t�i, ! 5CHFIXTI E I1-1 c4 CITY OF Fi[ nMiGM? HFAal { AGENCY RM sa M STA'i'I M-Tr JF aVerM IN ASSETS AND LTABILr= (Contbww) W4 i For the year ended Jura 30, 1989 I (exprEmsed in thousands) i July 1, June 30, 1988 Additions Deductions 1989 1 ASSETS: "i Cash $ - $ 626 $ 53 $ 573 Cash with fiscal agent 91266 1,871 965 1013.72 Notes receivable, net of allowance for a omts ! unaallectible 1,859 1,820 424 31255 i other assets 29 - - 29 TOTAL ASSETS g_11,154 $ 4t317 $ 1,442 $ 14,029 -' Notes payable $ 28 $ - $ 1 $ 27 Claims payable - 626 53 573 Employee deferred eaTpeacation 11,126 2,848 545 13,429 T 7M MBI T►r IES $ 11,154 ,$ 3,474 $ 599 $_ 14,029 i i I J -1G6- • i r , i I 1 (SAL FIXED AS'%*M A(33i GRuup This account group accounts for plant, property and equipmnt that are not recorded in proprietary funds. iW i• I i i i -, Scfm7IJIE I-1 i:l'I'Y OF HU1JPIriGICYl EEACEi Sail?J[JIE OF GENE M FDCED ASSETS June 30, 1989 (e)Tim %d in ttxxsands) GENERAL FIM ASSETS: Land $ 42,499 , Builc:lin,= 24,647 Improvements other tk an buildings 1,732 ... canstrvcticm in progress 564 TOTAL GENERAL FIXED ASSETS 69 442 INVESTMEN15 IN GENERAL FDM ASSETS FM4: General Fund $ 14,259 Specie]. RevMW Funds 23,363 "- Capital Projects Funds 21,217 DOnaU"a 20,603 TORT., INVESTMff1N ! IN GENERAL F M) ASSETS 69 442 r• --107- al..[1EUIi r- 1-2 CITY OF MU MUCION WA M SCHEDULF, OF GENERAL FIXED ASSMS BY MNG't CU AN'D 1LCIr. 7 Y w j June 30, 1989 (e)garzsed in thmmrds) , f 1XV1 Euildira Total 1 Fire $ - $ 3,357 $ -- $ 31351 Police -- 546 - 546 ; Qmmmity SwNioee 350751 8,376 1,732 451 859 I "j Public Works - 3,854 - 31854 J No 1 6,-743 9,078 15,826 I ^ 42,499 $ 25,211 � 14732 69,442 7 i I " ���� -108- CI'!'Y OF IRRUD GMI MACH SOU.31 QTIE OF C IL41 ES :0I GENERAL FUa.i'7 ASSEt'S BY MIMOU AND ACIZV,I'I'Y For the year ended June 30, 1989 (expressed in Umsands) July 1, 1988 Addit`.iam Deletions June 30, 1989 Fire $ 3,357 $ - $ - $ 31357 Police 546 - -- 546 Cmamity services 42,656 4,278 511 46,423 Public Works 3,290 - - 3,290 Non-d]epaartaental 15,826 - 15,826 $ 65,675 $ 4,278 L-511 a 69,442 I I ' I i i -3 09- 1 f ' 1 CRHML la'r-Tm DM ACOO 1P GROUP 1 This account group accounts for long-term debt that is not recorded in proprietary funds or trust funds. VOL "1 J J r.1 j J � 1 8C1 ED= J-1 my OF HUNmiGIm BEAM SQi�.-JIE OF CIIA14CMS Al GII1EW LMG-TF:�I DIET r� For the year ended June 30, 19119 (expresmsed in thaisands) i 1 o+.Ytstaryd3rg Q t Landing j Judy 1, June 30, 2988 Additions Reductions 1989 1970 Park Bonds $ 21590 $ - $ 310 $ 2,280 �1 Public Facilities Corporation 3,000 - 230 2,770 Parking Authority Revenue Bmids 825 - 125 700 California Coastal 408 - 408 - Civic Uprwemextt Corporation 19,830 - 220 19,610 ' Public FirAnCi.ng Authority 26,775 _ 265 26,510 Cmtpmsated absences 3,822 485 - 4,307 Amounts clue under owner participation mid diopwition 7 and development agrements 11408 3,588 1,408 3,588 I . Mcrtgagm peyable - 21875 - 2,875 Advances from other furls 36,916 53,923 7,901 82,940 j Zbtals $ 95,576 $ 60,871 $ 10,867 $ 145,580 I i i i it -110- I , I / I 4 i I ! 1 1 II STATISTICAL SECTION i I i ..J l J I l ' A table of the ten largest( property taxpayers was not presented as the I f � information was not readily attainable. i U I �0 f I CITY OF FKWrINGrON BEACH GOVEMD- II'AL MIND M NUM BY SOURCE Last Ten Fiscal Years (in thousands) Fiscal Property other Licent:es and Fines and Year Taxes Taxes Permits Forfeitures 1979-80 $9,690 $14,557 $4,076 $1,285 1980-81 11,761. 16,994 5,496 1,526 1981-02 13,646 19,050 3,003 1,516 1982-83 15,030 20,661 3,148 1,749 1983-84 16,935 22,879 51100 1,923 1984-85 17,638 25,923 5,963 2,094 1905-86 19,420 27,798 4,427 1,974 1986-87 23,087 28,885 4,919 2,096 1987-86 24,275 30,207 4, 348 2,338 1988-89 26,970 30,736 5,773 2,458 Source: Administrative Services Department, -- City of Huntington Beach Nate: includes General, special Revenue Capital Projects and Debt Service Funds -- i I i W � f I I I 1;`{HIBIT A i I ~� Use of Money From Other Charges for Other Total S and Property Agencies Clarrent Svc. Revenue $2,506 $9,294 $1,159 $315 $42,962 4,250 11,403 1,489 374 53:293 5,838 91101 1,316 529 54,007 it 4,551 7,954 2,917 11180 57,990 - 6,177 9,937 2,009 1,053 66,013 , I 5,096 12,888 2,161 364 72,927 5,718 14,143 2,350 736 76,574 7,634 14,422 2,799 456 84,298 8,355 015,492 3,208 1,410 89,643 ` ! 13,684 21,721 5,886 2,731 110,159 I iJ I 1 � I -112- CITY OF 11UNTINGTUy BEACH Gov--n %n.N,rAL rum) EXPENDITURE BY MCI'ICN Last Ten Fiscal Years (in thousands) Fiscal City City City City City Administrative Community �- Year Council Administrator Treasurer Attorney Clerk Services Development 1979-80 $48 $1,941 $862 $350 $164 $626 $1,617 1980-01 81 403 11028 435 143 1,682 1,645 1981-82 77 399 158 672 194 2,060 1,750 1982-83 98 498 264 629 165 2,140 1,712 1983-84 111 460 141 730 163 2,362 2,319 1984-65 129 731 268 806 195 2,559 2,726 1985-86 135 848 288 897 203 2,949 2,715 T 1986-87 129 959 283 913 252 3,088 3,248 1987-8.t 130 1,106 290 973 245 3,287 4,187 1988-89 156 1,304 322 1,042 293 3,409 4,393 Source: Administrative services Departrne City of Huntington Beach Note- Includes General, Special Revenue Capital Projects and Debt Service Pundss --113- l�61 is EDMB1T n Ccxznranity Public Non Capital Debt i Fire Police services Works Departmental Outlay Service Total JI � I $6,059 $10,879 $2,654 $5,442 $5,645 $9,628 $504 $46,420 I 6,862 11,721 4,340 8,780 5,177 8,725 503 51,524 7,315 13,367 4,405 9,707 4,010 8;860 471 53,645 I7,758 14,103 5,028 10,989 4,058 9,639 469 57,552 1 8,569 15,601 5,070 12,528 3,741 8,621 1,830 62,267 I9,494 17,123 5,287 13,652 4,867 7,874 1,896 67,605 ~ 10,252 18,745 5,668 15,249 6,796 11,791 1,847 78,385 11,187 20,519 6,090 14,863 7,726 10,730 2,189 82,177 11,840 22,370 6,954 16,205 7,153 9,786 5,243 89,769 12,722 23,565 7,595 16,893 7,088 43,289 15,177 137,248 1 r114- 1 i i PROPERTY TAX LEVIES AND COLLF,CI'IO`S 0 Fast Ten Fiscal Years (expressed in thaisinds) SECURED TAXES r Fiscal Total Total - Delinquency- Year Levy Collections Amount Percent ,.. 1979-80 $8,843 $8,603 $240 1.71 1980-81 10,245 9,872 352 3.44 1981-82 10,300 9,894 407 3.95 1982-83 11,405 11,117 289 2.53 1983-84 11,403 11,665 430 3.77 1984-85 12,418 11,634 425 3.42 1985-86 13,608 12,781 452 3.32 r 1986-87 15,089 14,448 572 3.79 1987-88 16,055 15,419 500 3.12 1988-89 16,963 16,346 493 2.91 �- Source- County of Orange Note- Delit%juency does not necessarily equal the levy amount , minus the collections since there are always collections of amounts levied in prior years. r -115- le 7D :_ EXHIBIT C { UNSECURM TAXES Total Total - Del incuency-- ., bevy Collections Amount Percent $862 $039 $23 2.67 I 827 789 38 4.59 V■ 808 737 47 5.82 960 909 51 5.31 1, 982 942 26 2.65 II 1,032 0955 33 3.20 1,130 1,060 40 3.54 1,167 1,100 45 3.75 1,250 11180 46 3.08 -� 1,287 1,234 37 2.87 I I , -116- I W 1 1 CITY OF HUNTINGTON BEACH ASSESSED AND ACTUAL VALUE OF ALL TAXABLE PROPERTY Last Ten Fiscal Years "» (expre8sied in thousands) 1 Fiscal Common Public Total Year Property Utilities Secured 1979-80 $872, 397 $60,454 $932, 851 1900-81 932,146 79,647 101 ,793 1981-82 4,608,703 322, 527 4,931 ,230 1982-83 5,171, 181 330,030 5,501 ,212 1983-84 5, 559,792 362,186 5, 921, 977 1984-85 5,940,642 426, 593 6, .367, 235 1985-86 6,519,923 450, 742 6,970,665 1986-87 7,019,654 475,467 7, 495,321 1987-88 7,457,614 487,793 7,945,407 1988-89 8,116,790 3,317 8, 120,107 Source: Orange County Auditor-Controller Note: Assessed value approximates market value for _ years beginning in 1901-82. Prior to this Assessed value was approximately 25% of market value. Assessed valuation foilows the guidelines of article 13-A of the California Constitution. Public Utility assessed valuations were adjusted to conform to Assembly Bill 454. -117- 4�Z ' 1 • EXHIBIT D I Total Estimated Full Assessed Market percent Unsecured Valuation Valuation Increase I $61, 547 $994,398 $3, 977, 592 19.55 62, 512 1,074, 305 4, 297, 220 0.04 288, 453 5, 219,683 5, 219,603 "1.47 374,692 5,875,904 5,875,904 12.57 370,949 6,292,926 6,292,926 7.10 466,571 6,833,006 6,833,806 8.60 441,125 7,411,790 7,411,790 8.46 504, 940 8,000',261 8, 000,261 7.94 436, 502 8,381,909 8, 381, 909 4..77 7 460, 095 8, 580, 202 8, 580,202 2. 36 J J ! i EXHIBIT E CITY OF HUNTINGTON BEACH PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS LARGEST TAX RATE AREA IN CITY Last Ten Fiscal Years .I Metro. Basic Orange School Water Year Levy City County Districts Dist. Others Total 1979-80 1.00000 0.04930 0.00070 0.12572 0.02560 0.00393 1.20525 1980-81 1.00000 0.04635 0.00057 0.12430 0.02225 0. 00325 1.19672 1981-82 1.00000 0.04635 0.00080 0.12810 0.01980 0.00270 1.19775 i 1982-03 1.00000 0.05756 0.00043 0.11656 0.016i0 0.00237 1.19352 i 1903-84 1.00000 0.05682 0.00039 0.12096 0.02370 0. 00210 1.20397 1984-85 1.00000 0.05630 0.00032 0.09962 0.01560 0.00177 1.17361 1985-86 1.00000 0.0556-50 0.00030 0.09329 0.01640 0.00161 1.16725 1986-87 1.00000 0.05529 0.00027 0.10677 0.01480 0.00142 1.17855 1987-88 1.00000 0.05490 0.00022 0.09514 0. 01120 0.00638 1.16784 1988-89 1.00000 0.05470 0.00022 0.09470 0.01100 0.00321 1.16383 i w Source- County of Orange Note- Rates are per $100 of Assessed Valuation ' I r I rrJ low r. i CITY OF HUNTINGTON BEACH GENERAL OBLIGATION BONDED DEBT W- CIOS Last Ten Fiscal Years i i General Assessed Percent of Bonded Bonded Market Debt to Debt. Fiscal Debt Valuation Assessed Per Year (thousands ( in 1,000s) Valuation Population Capita 1979-80 $4,590 $3, 977,592 3.12 172,200 $26.66 1980-81 4,360 4,297 ,220 0.10 173,393 25.15 1981-82 4,150 5,219,683 0.08 175,714 23.62 r 1982-83 3, 930 5,875,9U4 0.07 178,706 21.99 1983-84 3,695 6,292, 926 0.06 179,990 20.53 1984-85 3,425 6,633,806 0.05 181,000 18.92 1985-86 3,165 7,41.1 ,790 0.04 1S4,838 17.12 1986-87 2,885 8,000,261 0.04 186,757 15.45 ' 1987-88 2,590 8,301,909 0.03 187,740 13.80 1988-89 2,280 8,580,202 0.03 108,701 12.08 M� -120- Le75 + f 1 MIMIT F 1 Debt S-Brvice Debt Service- General Cund to Total (thousands) Expenditures Genera:. Fund Principal Interest Total (thousands) Lxnen&.tures I f I 11{ $220 $282 $502 $36,902 1 .4 230 273 503 40, 494 1.2 21.0 261 471 44,094 1.1 220 248 46b 48,717 1.0 235 236 471 53,177 0.9 I i 270 222 492 59,694 0.8 260 2n6 466 64,492 0.7 ..J 280 191 471 67,126 0.7 295 175 470 71, 232 0.7 310 ?55 465 75,593 0.6 L I i l� I I -121 3 �r 1 P0 Mi7BIT C, CITY OF HUNTINGION BEACH bOVMATION OF LFG1.L DEBT MARGIN June 30, 1989 j (in thousands) Assessed "Valuation $8,580,202 Debt Lbrdt: 14.% of Assessed Value 1,287,030 i Amoant. of Debt Applicable to Limit (Cw.Zeral (-bligation 1970 Park Bends) $2,280 Less Net Assets in Debt Service Fund (1g70' Park Bondi 195 -- Total amount of Dcbt Applicable to Limit 2e08r !� Legal Debt Margin $1,284f945 i l� 1 I.- f~ I Source: Administrative Services Deparbar-mt, City of fluntingLan Beac1, �.... � I tff --122- t � t y i 1, 1 Y11A 1 EXHIBIT H I CITY OF HUNTINGTON BEACH COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 1989 19JB-fl9 P,wm3ed%allot: $8,580,7A1,514 (after wing $201,634,519 in recLmelalrre t taut allcrsti in irrxeTerit) +� WILT AM OVRIAPFIMD B7M Cff{C pematt ift at. it ali�ahlP Je-g 30, LI89 son Omve axnty 7.611 $133,954 I Crack tlaxty aOding fthwiti.es 7.6U 14,918,797 Ctari3e Cbu#.y Clcxl Ox#inl. district 7.613 5M,537 ntL%�litdn Witw Q'str.-ict 1.480 7,6r5,5T1 tlnit qnl 4Ac-- Dist c of Ord Oatty, U.411 7,Q8,254 wltw n.ouitifis aarPWASrn QuVe 0"ty ftijtakirn dist:ri.-is #t1,2 and 5.310 5,907,1b0 ., 3 ontifimtes of PartidmUm O:a[pt sty ft tatim gift #3 10.864 7,4% C1wwrp Oirty ftaat im Dintriet #11 98.494 163,%5 M„ Omot(bm=ty Cbllap District Atttnrity 29.701 6,1217,316 j Las Ala dbc s Unifind 9diaal Distri& 1.745 12,390 Rxtimgbci Da:h ileum thcjh S*ml Diarit 70.723 1,230,545 aw rcitzn arch 9dm1 District 97.486 1,f(23;603 �. 0a9ar,View 9:fml Edi3 rice Wn mn Isuass) 90.1Z 1,M5,538 Ratain MdlPy s*xd District 29.585 1,347,597 City of llntjft-jt ►R":h 100.000 2,305,000 ... City of Ratan3bcx•► Omch ELdUng At3ixit;o 100.000 33,640,000 City cf tlrrlVmi Dmdi 1915 A:t Bmic 100.000 1,653,905 Tom►GUM PW WMAMM MNM)EEBr (2) $85,512,209 Leas Cdy of Urdrv-f= Bmch cat rot regid tl=rh pnperty taxes (35,293,905) Lem Me c f+lttter rdmil m( pxzztl n (100% cal£-mgmtirg) (7,623,254) .- Les Qrdnge Qxrt-y Sanitatim Dist. #3 (1M self-mTpwtim) (7,4%- ) TY,NIT AND afflEAWEr,MCcD UEr 582 554 (1) Ekchdm tax and remm�e &�c#miic+ notcu, rrkem-, nra•tx3jc_)e zeverue and tax allaaatxun kaxla and ncn- `- bcz Vital lrmse dAigatiam. WAM tr, AsHa W nti d lblu3tian: ,��y ue rf urarariaed and tYmld Ems: e ` Direct Irv• ($2,305,000) 0. 'u t'C1. qpliLaitl Tbbn-Ci:txict- $3,9 .(,,,000 lbtal Q-ms Dot. 0.58., cbm Visa nimi diatrid- $1,8z,086 7btal Nd;: tit 0.5% � i Stal-e S1=1 DAIding Aid Fgmyahle a13 of (:/30/89- $29,1.30,(326 stxum: Crlifurn+:a rLtUoip�l Sta�ticfiics, rnc. I III u i� r123r • I I r i EXHIBIT I CITY OF IILRMNG C)N BEACH i WATER RE<MME BOND COVERAGE r Last Ten Fiscal Years (Expressed in thousands) Expenses (Excluding Net Revenue -Debt Service Requirement Pw Fiscal Total Interest and Frvailable for Year Revenues De-preciation) t7Xebt Service Principal Interest Total Coverage 1979-80 $6,083 $3,643 ;2,440 $130 $87 $217 11.2 1980-81 5,814 4,78i, 1,034 130 83 ?13 4.9 1981-02 6,558 5,286 1,272 140 79 219 5.6 1982-83 6,521 6,255 266 150 74 224 1.2 1983-84 7,035 6,650 377 150 69 219 1.7 1984-85 8,050 7,667 363 160 43 203 1.6 1985-86 0,651 8,760 (109) ' 58 40 98 M/A 1906-87 9,162 8,476 686 184 34 23.8 3.1 1987-38 10,714 9,413 1,301 0 30 30 43.4 �- 1988-89 12,467 10,765 1,702 0 30 30 56.7 Source, Administrative Services Department, City of Iluntington Beach Note-- The 1963 Water Revenue Bond trust indenture I requires that the net revenue available for ho debt service be at least 1.25 times the annual debt service requirement:. � i i -124- :i EXHIBIT J CITY OF HUNTINGTON BEACH DEMOGRAPHIC STATISTICS : 1 City Population Percent Square Orange County as a Percent Year Population Increase Miles Population County Popoulation 1910 815 - 3.57 34,436 2.4 1920 1,607 107.0 3.57 61, 375 2.7 1930 3,690 118.7 3.57 61 , 375 3.1 1940 3,738 1.3 3.57 130,760 2.9 { 1950 5,158 38.0 4.72 216,224 2.4 1960 11,492 122.8 23.47 703,995 1.6 1970 116,4G0 912.9 26.73 1,420,38E 8.2 1980 172, 200 47.9 27.20 1 ,931, 570 0.9 1981 173,393 0.7 27.20 1,972,724 8.8 1982 175,714 1.3 27.20 1,993,831 8.8 1983 178,706 1 .7 27.20 2,036,390 8.8 1 1984 179,990 0.7 27.20 2,066,498 8.7 ,• 1905 161, 015 0.6 27.20 2,074, 326 8.7 , r 1906 184,838 2.1 27.20 2,180,831 8 .5 1987 1.86,757 1.0 27 .20 2,193,614 8.5 i 1988 187. 740 0.5 27.20 2, 238, 721 8.4 1909 188,701 0.5 27.20 2,200,405 8.3 h Source: Community Development Department, City of q Huntington Beach t� II ` !� -125- 0�V it EXHIBIT K CITY OF HUNTINGIM BEACH I q 00NSMUCTIO14 ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSITS } Last Ten Fiscal Years " Estimated Bank Number Valuation and Savings of of New and Loan Fiscal Building Percent Const:.-uetion Percent Deposits Percent Year Permits Change (0001s) Change in (0001s) Change 1978-79 6,137 (10.8) $91,462 (39.1) $85G,340 19.9 j1979-90 4,457 (28.0) 91,289 (.2) 955,539 11.6 a 1980-81 4,012 (10.0) 108,794 19.2 1,045,345 9.4 1981-82 3,230 (19.5) 58,298 i46.4) 1,134,324 6.5 1982-83 2,539 (21.4) 52,458 (10.0) 1,388,634 22.4 1983-84 2,776 930.0% 110,747 1.11..1 1,801,778 29.8 } j1984-85 3,163 1,390.0% 142,336 28.5 2,033,763 12.9 1985-06 3,173 30.0% 133,579 (6.2) 2,310,482 13.6 � 1986-87 4,098 2,920.0% 92,230 (31.0) 2,300,421 (A) �.. 1987-88 4,666 1,390.0% 177,297 92.2 1,746,335 (.24) 1988-89 5,039 800.0% 242,013 36.5 M vN Note- Bank and Savings and Loan Deposits for 1988/89 not available in time for this report. w. Source- Corr unity Development Department, City of lhmtington E)--ach and The Findley Reports on California Financial Institutions. i � 1 -126-- ` l I EXHIBIT L CITY OF HUNT1NGTON BEACH i~ t : INSURANCE IN FORCE June 30, 1989 1 i f' Cal-Surance- Broker PO Watercraft Null and Liability Watercraft Hull and Liability, Excess Helicopter and Hangar Liability ImoI ' ' Robert F. Driver- Broker 1 Boiler and Machinery Fidelity Bonds r i Fidelity Bonds Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Fire, Ext. Cov. , Flood, Earthquake Robert E. French - Broker �M.. Medical Stop Loss rw Employees Travel Accident Policy 4ti TOTAL I Source: Administrative Services Department City of Huntington Beach ' F L -127-- f i i i Annual Inmwance Co 21gy PolicY# Expires Premium Albany Insurance Company 8H10601 4/1/90 5,415 St. Paul Insurance Ccs%�any 388FA6887 4/1/90 7,425 -� U.S.A.I.G. 56GW404427 4/1/90 27,863 Kemper Group 3XND-17455-01 4/1/89 10,350 Kemper Group BTN104900 9/8/88 1,885 The Hartford Ins. Group PEBBX6441 9/8/68 11001 Commonwealth Ins Co CWMP 3323 6/5/90 46,395 Lloyds Underwriters 1922 6/5/90 46,395 j Continental Insuranr--e SFC 2983315 6/5;90 18,518 lkufrton Casualty Canpany 9HP 10623 6/5/90 18,903 i Lloyds Underwriters 1923 6/5/90 17,013 United Fire & Casualty UIM, 461122 6/5/90 11,110 North American Specialty NA 00127 6/5/90 9,260 ComTon wealth Ins C*T-3324 6/5/90 15,465 - Fircman's Fund Insurance XSP 0003973 6/5/90 15,150 American General Insurance 19086 1/1/90 116,000 Provident Life and Accident GTA-1348 7/1/91 5,934 _ 3773,536 -128- �163 4 EXHIBIT M j CITY OF HUNPING'IM DFACH r MISCELLMMUS STATIaTICS Jsxne 30, 1989 Year of incorporation 1909 Form of Government Charter City- Council, City Administrator Area 27.2 Square Miles Population 188,701 !� Miles of Streeta 370 Nw.ber of street Lights 14,350 Fire Protection: Number of Stations 7 Number of Firefighters 148 Police Protection: I Number of Stations 1 Number of Sworn Police Officers 238 w" l r1micipal Water Department Number of Customers 47,966 r Average Daily Const;rpt:ion 35.0 Million Gallons Miles of Water Mains 480 Public Works: Sanitary Sewers 270 Miles Storm Sewers 31 Miles mrnber of Street Trees 36,000 i Recreation and Culture Number of Parks 57 Park Acreage Developed 555 Miles of Beach 3.4 Annual Beach Visitorn 6,000,000 Nuber of Libraries 4 r Library of Volumes 11900,000 ►• Full-Time Employees 1,020 I Source: Administrative Services Department, City of Ehmtington beach r 4. I I -129- I