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HomeMy WebLinkAboutReport on Examination of Financial Statements - 6/30/73 i �i CITY OF HUNTINGTON REACH i REPORT ON ;LAMINATION OF FINANCIAL STATDIENTS # For the year ended June 30, 1973 � i i �i �i i �i A CITY OF HUNTINGTON BEACH COFTENTS • P, age Accountants' Report 1 Balance Sheet, All Funds 2 . • Balance Sheet, Special Revenue Funds 3 Balance Sheet, Debt Service Ft ids 4 Balance Sheet, Capital Project Funds 5 i Analysis of Changes in Fund Balances, All Funds 6 Analysis of Changes in Fund Balances, Special Revenue Funds 7 Analysis of Changes in Fund Balances, Capital • Pro,iect Funds 8 Statement of Revenue, All Funds 9 Statement of Revenue - Estimated and Actual - General Fund 10 i Statement of Revenue - Estimated and Actual - Special Revenue Funds 11 Statement of Revenue, Expenditures and Fund Balances - Debt- Service Funds 13 i Statement of Revenue - Estimated and Actual - Capital Project Funds 14 Statement of Expenditures and Encumbrances Compared with Appropriations - General Fund 1.5 • Statement of Expenditures and Encunjorances Compared with Appropriations - Special Revenue Funds 16 Statement of Income - Budgeted and Actual - Water Utility Fund �7 Analysis of Changes in Retai:r--d Earnin;s - Water Utility Fund 18 Schedule of Operating Expense - Budgeted and Actual - Water Utility Fund 19 Statement of Changes in Financial Position - Water Utility Fund 20 Notes to Financial Stateztents 21 COOPERS & LYBRAND CI NTlfl{O VUauc ACCOUf1TANT5 IN PRINCIPAL ARCAS or tmr woRIO i City Council City of Huntington Beach Huntington Beach, California i We have examined the financial statements of the various funds and account groups of the City of Huntington Beach as of June 30, 1973 for the year then ended, listed in the foregoing table of contents. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests i of the accounting records and such other auditing procedures as we considered necessary in the circiunstances except as stated in the following paragraph. The Water Utility Fund does not maintain detailed records of approximately $9,420,000 of purchased property and equipment that i is capitalized. In addition, the Water Utility Fund has capitalized approximately $833703000 for assets contributed to the City through June 30, 1966 by subdividers at values estimated by City personnel. There is no supporting documentation Oor the amount capitalized. Contributions by subdividers since Ju a 30, 1968 have not been recorded on thQ books. Because we were unable to satisfy ourselves by appropriate audit tests or by other means as a result of these i incomplete records we are unable to express an opinion on the accompanying financial statements of the Water Utility Fund. The Cit.,* has not maintained a record of its general fixed assets, and accordingly a statement of General Fixed Assets, required �. by generally accepted aceo=--sting principles is not included in the financial report. In our opinion, the financial statements listed in the table of contents other than the financial statements of the Water Utility Fund present fairly the financial position of such funds � and account groups of the City of Huntington Beach at June 30, 1973 and the results of operations of such funds for the year then ended, in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year. r CJ Newport Beach California March 18_, 1974 1M 1 I Tr ` .. .r.'. `..Q!xfa �} \f --- �.r-i X1' j�' Cw: +_ - y.s;•ig �.. - ,,+ .. _ � • , 3 '•'•� .h•-- _ +.yr�+•`ij.-`� ' �i a�� pylvyYi �P {a� !=r`•'r• �h'�'.G ��r. .f"-ti:: �?'iltty a-. •. „ti' Y` fir.'.... .• .. CITY O ` H[iIgTIPGiTf]�1 EACH ' • . ,:{•.y+. �. _ .r� 'Mlt�'s uy 4' .�=. �; ���_ _ `•�• . _ •x, t;'.."Y.�Jr r� _ -.��'-..�1�• �:s}�� `' :��1.%-s e.. 't,•'^� I � t .,. i}.:R`4.� BAIA= SREETy ILL FUNDS June 30, 1.973 Totals Sreciarl-, Debt Capita.? hater General (Memorandum General i6iemi -Service- Praject Utility Trust Bonded only)_ Fund Funds` . Funds Vwd fund Debt ASSETS: 1 Cash (Note 2) $10 220 907 $2 015 681 $7 402 476 $35 '764 $44 260 $621 955 $100 771 Cash advanced to fiscal agent 334 693 5 925 - 328 766 Accounts receivable 1 26 627 344 5 710 623 9 399 8 730 196 342 Less, Allowance for doubtful accounts [R 758) (2 ) (1 670)- (21 000) Receivable - Federal grants 587 383 687 3a3 Property taxes impounded 572 561 572 561 Less, Reserve for property taxes impounded (572 561) (572 561) Special assessments receivable 86 773 86 773 Deposits 32 269 32 26 Due from other ftmds 905 870 173 617 721 577 202• 1 27 9200 Estimated future revenue and resources for bond redemption (Dote 3) 5 930 000 $►5 930 00.0 Property and egaipment, less allowance for depreciation (Note 1) 15 517 607 15 517 607 4 96o 37l 2 51 743 919 172 40� 16 677 215 i 0 000 LIABILITIES, RESERVES, FUND BALANCES, AND RETAINED EARNINGS: General payables 1 477 397 668 721 609 211 73 606 .125 859 Contracts payable (Note 4) 253 737 252 837 900 Payroll payables 485 970 06 416 216 58 347 10 74g3Due to other funds 905 10 613 594 764 2 927 111 850 185 716 Other liabilities 119 224 99 070 13 453 6 701 Matured interest payable 33 973 5 925 28 048 Bonded debt, not matured (Nome 3) 9 283 667 93 667 3 260 000 5 930 000 Resernled for: Encumbrances (Note IE) 2 830 937 557 427 2 186 553 86 957 Revenue bond retirement 514 052 • 514 052 Other 13 484 13 184 Contribution to utility 8 �465 006 6 466 006 Fund balances 6 497 528 779 696 5 097 463 42 ,438 467 960 109 971 � Retained earnings 4 o79 190 A 079-190 f $ 4 960 3LI $2 l *4 $8 $ l 2 a $ 4°.' 677211 $ o aQa See accompanying notes. p• _ .' - .. .4• _ ;} _.j •.yr.:`Nr^` Y.. tea.• • , L • :` ..�•.t; �. ;.[" -mac ' - `= t• `` r w' . rt �l ti .5;. ._ �, �rtt`.yams fy T^' ,a nF •'y�..': a � ti _ _ .. ►.`^�;. �ir �� �'•r '`�N';�`% �y P `'•t',c .�;_ a.f •r r •,f�'1•r -.�_¢.L� .. t = _.a ti �, � . , T --,p_ .. .�fi�w'4 :• S a_ AM f� ..w JIM 40 .'4 - �*"` '•_,, ;5.=ti •--+. �;.-�-. fir wmc- `MJJ''.1'�1i (/���e 1•.�-*y or /�� y���s•�• \` - Y.: i t.Y,•r!._;• _ }y1,3 ,1t 3rt•''r�`' - T •.5,�-...��• +i. / aE e+.i Y. .. - '•i a` ••�• p-Y `4„• ���.,•'• .+Y i^4ti�• � =�'�`}.' +�it�,�x,._ wY�•• `b-y,Yi..• ti- .�'_� w= Bum �r/n�E SHEET - `�: '•:. .!" _-.•ic.. •. :: 'mow E*.y• _ .:y: :�.s_r,, �+. •fi. - '. •.'...ti{ t._ '.T iFLLC1.l, SPECIAL RFIT UE FUND "La`�'c•`'�• �E-;� ` 'S,•.•EN 3•lrY • .,S,r� '` .�;'�4`-.• . Ss: S` ,t '€i#• .a• �� .TlI11a 30, 1973 - Yout z Civic Flamed. Special ftpl.oy- Special Parke and Improve- Local - Assess- Revenue meet Animal Music arid., . Librarj Gas Tax Recreation meet Sever Drain a.ge araut agent Sharing Service License Prowtion Total Fund Fund Fund Fund Fund Fluid Fund- Fund Fmd Fund- Fund Fund i - AS S ETS: Cash $7 4o2 476. $169 662 $712 648 $1 o89 989 $1 576 696 $1 534 938 $1 552 142 ($181- 445)- $16;.31.5 $926 099 *1 935 $8 750 45 203) Accounts receivable 710 623 12 529 147 366 35 091• 55 901 8 578 7 531 198 046 23 280 219 899 30 2 322 d Less, Allowance for doubtful accounts (1 670) (1 670) Special assessments receivable 86 773 86 773 Due from other funds 721 577 93 538 7 035 508.430. 111 850 724 8 919 M 182 191 3 552 1 125 080 1 §_U 9Q 2 01 L6 1 6 3- 1� 1268 1 1 8: (2 } LIABILITIES, RESERVES, AND FUAD BALANCES: I General payables 6o9 211 18 689 9'e 665 257 556 152 548 25 473 28 612 3 7u8 878 3 780 15 262 Contracts payable (Note 4) 252 837 252 _837 Payroll payables 58 347 13 376 42 882 2 089 Due to other funds 594 764 205 242 85 791 491 000 17 430 96 Other liabilities 13 453 2 107 11 346 Bonded debt, not matured 93 667 93 667 Reserved for: Encumbrances 2 186 553 26 114 221 487 831 387 986 636 5 979 101 754 63 30 13 103 Other 13 484 13 484 Fund balances 5 o97 463 121 7oo 634 400 (6 987) 49& 778 1 923 357 703- 83a 12 DO 15 271 1 14.5, 99E. 1 027 (32 707) $8 1182 l�l $ 2 $1 12 080 $1 6 �2 $2 1 + 6I 6 1 2 �;31 . 1.2�6, $t 1 81 $880 ($2,1 ) See accompanying notes. •+• S. a et�Y^•�G.'t•y,' i S y. •..' - � a .«t ty• +' - 1 r•• t Sr `. � �. _ -s.^.w�9-?'i,4•��i �'!.s'�.`- 4.-'"-,.I� ''r•.+'%1'r` t ' } ' CITY OF HUNTINGTON Bms . . .. . . 'a 4; =H�" ..A{�#• i< -.t �'''` .'ar'�A+•w �S"r.'s.'.,�t~� }�*' : ,may `•:Z y. BALANCE SHEET, DEBT SERVICE PURM * June 303 1973 . Whte M 1qq0 park { 4,` 1 a•�.N Interest"and Bond Interest • h ': Redem*tion' : and RediaW+Aon Total Ftimd Pt�rd , ASSETS: .: 4 Cash 435 76ai +70 37 {$3 61v _. Cash advanced to fiscal agent 5 925 1 725 4 200 Accounts receivable 9 399 1 033 8 366 Due from other funds 202 28 73 ' 21low 0 LIABILITIES f AND FMD BALANCES: Due to other funds 2 Se7 35e 2 535 _•: Matured interest payable 5 925 1- 725„ 4200 Fnnd 42 430 71 o43 . 26 60�} $ ( See accompw*1t Rol - �{ - \ C7.TY OF HUNTINGTON BEACH BALANCE SHEET, CAPITAL PROJECT FUNDS inne 303 1973 1970`. 1955 Special' Capital' Park -Bond Water,Bond Total _ outlay Fund- Construction -Fund Construction Fund ASSETS: Cash $44 260 $96 503 ($129 553) $77 310 Accounts receivable 8 730 1 415 7 315 Receivable - federal grants 687 38373 40r18 l77 310 LIABILITIES, RESERVES, AND FUND BAIMICES: General payables 73 606 73 606 Me to other funds 111 850 ill 850 Reserved for encumbrances 86 g57 86 957 ' • Fund balances 467 960 10261.. .179 689 .77 310 145 . if�,� •� may,_y.. . '9e�e acc�apangiiag:raotee+ ,� #- • ..i - -• ... .. - . •, , .=� •,�:.,,:a}�''� '._dr.aiL`. �,�;•�:a*,1;�a,,,. ...j;�.;,�j�a'►3r�.t� ±$:r.i _ .. _ •.c .. _ ,r. .e- ._ y ,--".1�wY:�:t5 cx• e,R .r, :r: fir"a:�•r CITY OF HUNTINGTON BEACH ANALYSIS OF CHANGES IN FUND BALANCES3 ALL FUNDS For the year ended June 303 1973 Totals Special Debt Capital (Memorandum General Revenue Service Project Trust Only Fund Funds Frauds- Funds Funds Balances, July 1, 1972 $,7 431 098 $530 100 $5 664 35 41 $1 119-627 $77 b00 d Revenues 23 626 968 13 439 329 6 536 o72 515 .513 1 136 o54 Transfers from other funds 1 312 7o4 1 260 336 52 368 Reserve for encumbrances July 1, 1972 7o 418 8 866 21 552 4o aao Reimbursement of prior year' s expenditure (library project) 534 182 534 182 Reverse prior year's reserve for amount due otter funds 329 048 322 303 6 745 Other additions 39 177 2 006 3 900, 900. 32 371 Total additions 25 912 497 15 032 84o 9 154 81a 515 5.13 1 1 6 32 371 • Less: Expenditures and nonexpenditure disbursements 22 618 746 14 053 977 6 317 194 507- 494. 2 740 081 Transfers to other funds 1 269 129 52 368 1 216 761 Reserve for encumbrf ices June 30, '1973 2 830 937 557 427 2 186 553 S6 957 Other deductions _ 127 255 119 472 6 200 . 1 583 Total deductions 26 846 o67 14 783 244 2 726. 708 507- 43k. - 1 828-621. Balances, June 30, 1973 $6 4 7 8 $_ 6 6 $ pf $ 8 f *Lam .. -. .. 1 ~• �*�- .'v .el' '.L�-.fit'.�_;S'+_�t-a y+4� -, r .. �:t �� _;�, - '1•� ''t.�•,.' F' A� .`s'„� - i�'• "� ice. '+�. .:.,t -.;� �, - :' �� yr? ` �• �� -.ti'�kti .r - 1,.,._ z,...� :�� �r t. .,•.� `•�. ��:. See accompanying notes. •t, ..+,:�. of •..i: C -•Tr..�., _L�l. i •: .�.�.tla:• '.'.k;ti�- _' -'f ti'Y�i•'�f-• !s`{'.: -yV .. - • i i `t '�' '.tr S f - a �' _ v t :.•�-4- .-53..- �i iJi Pyti'+1i --It+. •. .r y r T Sit ' :t:_` z � b ' `�Y` ti: ,� l- .. S: _-A'.•'F_F ��FrX•.`J .F � -� „�v..t:'AID-2. tiSK.. i�_}� y, � ;.. �l Yr �» _�.y~•- t• - aT•- • .. � +'� t.. ^A.-.ti.i• .Rv '-� 1[.ice^ -`i,{ C�.. 'Y •a CITY OFIi1JNIT 11�lGTtSN BEACH . :,: - ! ,i.:• F� •�: .a.' - `.a�i:�.!w�.£y. :Y�i+ cYc�-- ',1• t '`i - 'S. :"Y. • . .+ i ham. »..t?LEI - `-7. _ -F•_ .� Y � - _ �.F�a .�. _ .f.-e', ..a ANXLVSI S OF CHANGES I N•FRlNU HAL/rNC E5, SPEC I kL I;EY€NUE FiJNlSs• FOR .TIE YEAR LNDED .aUNE 30t 1.973 YOUTH. Civic PLANNED SPECi--w EwLOY- Music SPECIAL PARKS AND INPROYE- L*CAL A33ES3- ►rvismE moo PAteui No, MwAL AND TRAF� LIBRARY GA3 TAX RECREATION 14ENT SEWER DRA)NA6'. GRANT "CUT swo,ONa* SaII CC METER" LI CENSE FROMoTi Ott SAFE1 TOTAL FUND FUND FUND FUND FUND_ F� tIND� FUND NN-D NND FUND FUND ! FUND FUND fU!j BALANCES, .JULY 1, 1972 66 52 $132 612 $1 250 572 J95c 873 *t a 6 2 3k 4] 13 121 * z REV ENU ES 8 536 o72 641 699 1 34o 8o2 1 536 683 1 608 722 313 509 656 i98 646 435 $1 145 998 $18 264 $82 481 $121 301 133 648 TRANSFERS FROM OTHER FUNDS 52 368 52 368 RESERVE FOR ENCUMBRANCES, JULY 1, 1972 21 552 20 821 731 REIMSURSERENT OF PRIOR YEARS E%PENJITURE a., (LIORARY PROJECT) 534 182 534 1& REVERSE PRIOR YEAR'S AESERYE FOR AMOUNT DUE OTHER FUNDS 6 745 6 745 OTHER ADDITIONS 3 900 3 8 wo t0 TOTAL ADDITIONS 154 819 662,52o 1 341 533 i 540 573 2 11i9 69 313 7o& 646 09 1 1# 18.264 $2 4+31 t2t .gat 186 026 289 LESS ExPENDITURES Ai10 NONEXPENDiTURE DISBURSEMENTS 6 317 194 647 318 1 359 657 1 664 173 1 279 443 96 h22 320 133 663 728 86t 17 207 i1 f}66 1+j 1$6 TRANSFERS TO OTHER FUNDS 1 216 761 376 561 460 752 82 481 1 235 289 !� PESERVE FOR ENCUMBRANCES, I JUNE 30, 1973 2 186 553 26 114 221 487 831 387 9% 636 5 979 101 754 63 30 13 103 OTHER DEDUCTIONS 6 200 2 873 976 1 080 196 1 wo: � 5 TOTAL DEDUCTIONS 2g..� 7oQ ' 67 1 97 7{ 2 14 4 2 72`7 �T 103 48122 08� 6fil1 i $ 121 3a1 16 64 2 BALANCES, •. JUNE 30s 1973 �. $121 00 $6 *.42L718 1 i6l 02., ...:..... ..�:.� 2 0 } �...� SEE ACCOKPANYI N4 NOTES. . /• ' t '.•r,♦` ` �'�� � � r ..4•� ..,�.'�+-.. 't _ •K`..i. •.4� -+.'�'eft ,.1 . - f -� _+ "r``;S�`1�"mod•,• ^`;.k%���;�,'�:� .:-,Y« - s�$}_*f_ .�i �;. i ,7c-:.;k�ti�.. ..a- •%-';. - f.'::�e:�:t _-e�„l�.+h -ye" T.•r�ia�^r...��• a`"�7F.d`--f+J al� ti77 t ..'s CITY OF HUNTINGTON BEACH ANALYSIS OF CHANGES IN FUND BALANCES, CAPITAL ,PROJECT FUIM -' For the year ended June 30, 1973 Special 1970 Park 1955.Water Capital Bond Bond Outlay Const-action Construction Total Fund Fund Fund y y Balances, July 13 1972 $1 119 627 $13 8?6 $.988 41 $77 310 ; ' Revenues 1 136 054 4 042 1 132 012 i . Reserve for encumbrances, July 13 1972 40 000 40 400 3 Other additions 900 g00 s ' Total additions 1 176 954 44 042. 1 132 912 4 Less: Expenditures: Central Park 1 544 7g8 1 544 798 Edison Community 195 28$3 195 2 3 1 740 081 1 740 081 Reserve for encumbrances, June 30, 1973 86 957 86 957 Other deductions 1 58 1 583•. Total deductions 1 828 621 1 7_ s Balancee, June 30, 1973 :. $.379 689 10 -< . - j,., ..-rY s+ `'`�y�Ts•�'T.i'.� mot. .+'*� y�•. 4F',���i�M1 y Tr... �-..+:�� .{s: ' •� - ••: ,� r 's�.ri yr=`!+^!•' - �` . _ �. •--# See asCC@IIffiylljg�l #!i. • .. . : + � :� "1.yF ���_ate{E"�•��+` �a.- . . .. at .`{RL. :" _fT +� •ti-_ � 'S �`..�i. '_' 'S1" �'ar•-��_S'e. ____'�-� ;,=,3LY 7[`s-� v -.���:_� a �i, CITY OF HUMINGTOH BEACH STATEMENT OF REVEM3 ALL FUNDS For the year ended June 30, 1973 _ Totals Speeial Debt Capital (Memorandum general Revenue Service Projfct Only) Fund - ninds � Taxes $12 096 312 $8 586 300 $2 996 571 $513 441 Licenses and permits 2 260 913 1 875 68o 385 233 Fines, forfeitures and penalties 405 536 115 804 289 732 t Use of money and property 949 092 607 816 321 702 2 072 $17 502 Current services 2 015 655 580 OVt 1 435 571 From other agencies 5 762 212 1 589 742 3 077 419 1- 0+95°. 051 other revenue 137 248 83 923 29 844 23 501. $23 626 96fi $13 439 32� $S 536, 2 $ 1, 1� $1 4 i I 1C i i See. accompanyfng, notelsa.1, - � _ � '�+{ 'X'e+.JJi"�'��J` .S•"i`Lt' � •Rs�c.:i `�._ L .. CITY OF HUNTINGTON BEACH • STATEMENT OF REVENUE - ESTIMATED AND ACTUAL - GENERAL FUND For the year ended June 30, 1973 • Over Estimated Actual (Under) Revenue Revenue Estimated Taxes: Property taxes - current year $4 69 595 $4 694 750 ($4 845) Property taxes - prior year 9 000 76 T 4 21 236 Other property taxes 3 000 3 248 248 Penalties on delinquent taxes 17 300 10 810 (6 490) Sales and use taxes 2 800 000 2 871 o41 71 0IL]. Franchises 250 200 254 950 4 750 In lieu water utility 174 000 168 941 (5 059 r Cigarette tax 470 000 456 924 (i3 0763 Occupancy tax 45 000 48 872 3 872 Total taxes 8 557 095 8 566 300 22 205 Licenses and permits: Business 3icences 390 000 424 345 34 345 • oil well licenses 6?5 450 744 805 69 355 Building permits 330 000 325 646 (4 3354) Other licenses and permits 395 300 38o 884 (14 416 Total licenses and permits 1 790 750 1 875 680 84 930 Finea, forfeitures and penalties 100 000 115 804 15 804 Revenues from use of money and property 632 60o 6o7 816 (24 784) Revenue from other agencies: • State 1 380 000 1 310 ?90 (69 210) County 200 000 231 045 31 045 Federal 15 000 10 925 (4 0?5) Other 35 000 36282 1 982 Total revenue - from other agencies 1 630 000 1 589 742 (40 258) # Charges for current service 419 500 580 084 160 584 other revenue 17 100 83 903 66 803 Total revenue - general funs $13 147 045 $13 439 329 $2 2 284 • See accompanying notes. 10 CITY OF HUNTINGTON BEACH ,d STATD4ENT OF REVENUE - ESTIMATED AND ACTUAL - SPECIAL REVENUE FUNDS For the year ended June 30, 1973 Over Estimated Actual (Under) Revenue Revenue Estimated Library fund: property taxes $622 038 $626 151 $4 113 Interest income 2 800 4 6g0 1 890 Fines and fees 12 000 10 847 (1 153 Other revenue 50 11 393 Total revenue - library fund 636 888 641 A99 4 811 Special gas tax fund: State gas tax 1 300 000 1 2g3 953 (6 047) Interest income 9 500 6 849 37 349 Total revenue - special gas tax fund 1 309 00 1 340 802 31 302 Parks and recreation fund: Property taxes 714 210 709 313 (4 957) Use of money and property 30 850 39 243 8 393 Subdivision license and unit lot fees 900 000 64o 894 (259 l06) Recreation and other current service fees 120 043 121 676 1 633 other revenue 26 390 25 557 833) Total revenue - parks and recreation fund 1 791 553 1 536 683 (2,4 870) Civic improvement fund: Utility taxes 1 428 000 1 530 160 102 160 Interest income 30 000 78 484 48 484 Other revenue 78 78 Total revenue - civic improvement fund 1 458 000 1 6o8 722 150 722 Sewer fund: Sewer permits 180 000 131 451 1 451 Interst income 60 000 71 612 11 612 Local assessment 14o 000 60 446 (79 54) Total revenue - sewer fund $380 000 $313 509 ($66 491) Continued i 11 CITY OF HUNTINGTON BEACH STATEMENT OF REVENUE ESTIMATED AND ACTUAL - • SPECIAL REVENUE FUNDS, Continued For the year ended June 30, 1973 + Over Estimated Actual (Under) Revenue Revenue EstiME.ted Planned local drainage fund: Interest income $55 000 $55 090 1,10 Local assessment 505000 601 708 9 Total revenue - planned local drainage fund 560 000 656 798 96 79r► Grant fund: Grants 496�604_ 646 435 149 831 Revenue sharing fund: Interest income 25 734 25 734 Federal revenue sharing 1 120 264 l 120 264 Total revenue - revenue sharing fund - _ 1 145 998 1 145 228 Youth employment service fund: Various city' s contributions 16 766 16 767 1 Other revenue 1 497 1 497 Total revenue - youth employment service fund 16 766 18 264 1 498 Parking meter fund: Meter collections 90 000 82 481 (7 519) Animal license fund License fees 95 000 121 301 26 301 Music and promotion fund: Property taxes 131 054 130 947 (107) Other revenue 10 050 2 701 {? 349 Total revenue - music and promotion fund 141 io4 133 61,.8 (7? 456) Traffic safety fund: Vehicle code fines 280 000 289 ?32 9 732 Total revenue - special revenue funds $ 255 415 $ 536 072 $1 280 65_ See accompanying notes. • 12 r CITY OF HUNTINGTON BEACH • STATEMENT OF REVENDE, EXPENDITURES AND FUND BALANCES - DkBT SERVICE FUNDS For the year ended Jane 30, 1973 • 1955 Water 1970 Park Interest Bond Interest and and Redemption Redemption i Ta al Fund Fund RevenueE;: Property taxes $513 441 $4o o17 $4?3 424 Interest income 2 072 2 072 Total revenue 515 513 42 089 47 I• Expenditures: Redemption of serial bonds 16o 0o0 35 000 125 000 Interest on bonds 347 038 7 525 339 513 Fiscal agent' s fees 456 108 348 i Total expenditures 507 494 42 633 464 861 Excess (deficit) to fund balance 8 019 (544) 8 563 Fund balances, July 1, 1972 34 419 71 587 . (37 168) i i Fund balance, June 30, 1973 $42 438 $71 013 ($28 605) 1 I i f See accompanying notes. i i i 13 CITY OF :iUNTINGTON BEACH STATEMENT OF REVENUE - ESTIMATED AND ACTUAL - CAPITAL PROJECT FUNDS For the year ended June 30, 1973 Ove r Estirated Actuc 1 (Under) Revenue Revew , Estimated Special capital outlay fund: Interest income $4 042 $4 042 1970 park bond construction fund: Interest income $50 000 i3 460 (36 54o) Revenue from federal government 150 000 1 095 051 1 045 051 Sale of property 23 501 23 501 "'otal revenue - 19?0 park bond construction fund 100 000 1 132 012 1 032 012 Total revenue - capital project funds $100 000 $1 136 $1 036 054 i • See accompanying notes. 14 - - .} _ - • ti �C z' n�.—a:l�- ,}� fit' I CITY OF HUNTIRGTQF BEACH STA TERM?T OF EXPEIMITURES AND ENCUMBRANCES C CMPARED WITH APPROPRIATIONS - GENERAAL FUND For the year ended June 30, 1973 Ex erad:Ytures Supplies Total and Other JbTendituree Original Personal Fees and Capital and Appropriations Unencumbered Services Services Outlay Total Encumbrances Encumbrances (Note: ID) Balance General government: City administration $137 371 $7 649 $4 819 $149 839 $699 450 538 $124 177 ($26 361) Finance department 246 885 (25 118) 5 945 227 712 9 923 237 635 237 852 217 City attorney 177 257 24 398 633 202 288 3 235 205 523 207 756 2 233 Flanning 260 878 27 159 2 942 29<: 979 11 652 302 631 305 468 2 837 All other 400 845 616 174 9 748 1 026 767 16 112 1 042 879 978 957 63 922) 1 223 236 650 262 24 087 1 8107 535 41 621 1 939 2o6 1 854 210 8( 4 6) Public safety: Polio 3 609 77l 391 4-27 Z42 871 4 144 069 56 182 4 200 251 3 952 349 (247 902) Fire 2 352 264 161 212 31 691 2 545 167 47 061 2 592 228 2 537 9W (54 236) Harbors and beaches 329 700 58 922 26 925 415 547 15 779 431 326 388 217 (43 109) Lifeguard 407 000 40 540 10 165 457 705 14 361 472 o66 468 233 (3 833) Building 374 583 17 755 1 290 393 628 5 812 399 44o 405 692 6 252 Other 202 514 237 320 93 662 533 490' 14 4i5 54.7 93.1 553 361 5 450 - 7 2T5 832 907 176 306 604 8 489 612 153 610 8 643 222 8 305 84) (337 378) - Highway, sanitation and waste removal: Streets 849 135 739 519 81 324 1 669 978 233 312 1 903 290 2 034 041 130 751 Engineering 631 922 46 9l0 13 435 692 267 12 592 704 859 660 170 (44 689) Other 386 638 E105 017 112 880 1 ?34. 535 11� 1-42o 827 1 AT 247 C73 5§2) a 1 86 6 3 1 446 20 6 666 8o 7 S` 59 7 3 3 7 362 196 4 026 5t76 0 ��48 12 482 Total $10 306 763 *3 148 384 $ � 0 14 053 9�f7 4?• 14". 611 404 14 201 i?`_- oL .� See accaarx,YinB nQtta. �'_ Via , ��.� T , _ -J .'Y'=4 �-'i'Y R:VT S''�iK�• -ice _ _ a _•' 6Z CITY OF HUNTINGTON BEACH STATREM NT OF EXPENDITURES AND ENCUMBRMCES COMPARED WITH APPROPRIATIONS - SPECIAL REVEMM FUNDS For the year ended June 33, 1973 Parks Planned Special and Civic Local Special music gecial Employment Animal and - Library Gas Tax Recreation Improvement Sewer Drainage Grant Assessment Service License Promotian Original eppropri- Total Fund Fund Fund Fluid Fund Ftmd Fund . Fund mind Find Fund --- ations (Note 1D) $6 319 033 008 588 $925 000 $1 890 452 $1 216 Goo $380 000 $560 000 1482 689 765 $87 000 $152 53s Expenditures 6 317 193 647 318 1 359 657 2. 664 173 1 279 443 96 422 320 133 663 727 $861 17 207 114 o66 154 186' Encumbrances 2 186 553 26 114 221 487 831 387 9B6 636 5 979 101 754 63 30 1 i0 Total expenditures and i encumbrances 8 503 746 673 432 1 581 144 2 495 560 2 266 079 102 401 421 887 663 790 861 17 237 .114066 15�28� I! Unencumbered balance. ($2 184 713} ($64 844} ($6 ) ($60 l08} ($1 0 0 0 ) $2 $1 8 11� ($18 } ($gam} ($ } t$2Z 6=6) (#1 } r ... � •r, _ _' .n1 i'+"�'� _max r c Rs '. _1 :_ 4L � ��'•-_ i � _ See �4eampan "'R "�yQ`i yfis • `'' 4 its t` ~."�' Q� .t"� °'-�s.' ". a11 — ----��_ — '-- — - ... ._. _ .... - • �'x' a... _ y r.�. ._ _'si•. .. .. v __ :.e,. _'L. w~ _ �...t'' #_ '�e`o�L. _ tl�iai ter."_ _ CITY OF HUNTINGTON BEACH WATER UTILITY FUND i STATEMENT Or, INCOME BUDGETED AND ACTUAL For the year ended June 30, 1973 Over • (Under) Budget Actual Budge Operating revenues: Metered wati,er sales $2 200 000 $2 063 81 ($].36 18 Other water sales 54 190 47 94 6 249� r 2 254 190 2 Ill 761 (142 429) Less, Operating expenses 1 740 o86 1 762 282 22 196 Net operating income 514 104 34-9 479 (164�625) Add nonoperating income: i Interest income 50 000 34 721 (15 2?9 Acreage fees 72 000 30 795 41 2053 Tract fees 72 000 New service 50 000 162 31 5 0 12 270 Other 47 64o 6o 048 12 408 0 805 744 668 819 (136 925) Legs, Nonoperating expense: Bond interest 116 850 116 o58 (792) Fiscal agent fees 3 920 1 300 620 Other 20 000 27 2Z4 7 074 i 3B 770 144432 5 662 Net income $66FL4 $ 25 4 38Z ($14_ 587) r See accompanying notes. 1 CITY OF HUNTINGTON BEACH WATER UTILITY FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS For the year ended June 30, 1973 • i Balance of retained earrings, July 1, 1972 $3 498 068 Add: Net income for the year ended June 30, 1973 524 387 Reversal of reserve for encumbrances July 1, 1972 39 226 i Reduction in reserve for 1955 G.O. bonds 17 450 Other 59 Balance of retained earnings, June 30, 1973 $4 QZ9 190 i r • �r .i See accompanying notes. r .r 18 CITY OF HUN1'INGTON BEACH WATER UTILITY r UND SCHEDULE OF OPERATING EXPENSE - BUDGETED AND ACTUAL For the year. ended June 30, 1973 Under (over) i et Actual Budget Water source: 4 41 865) Purchase of water $4 05 500 $ 47 365 ($ Materials, supplies 8� �425) and service 42 2 Total water source 413 240 455. 530 ( 0_ Wells and treatment plant: 1 i5 000 17 589 2 589) pump tax Labor 235 000 172 726 52 27t� Materials, supplies 077 and service 105 120 10�F 01�3 _ Total wells and treatment plant 355 120 29, 4_358 60 762 Transmission and distribution: 138 300 129 610 8 69p Labor Materials, supplies 8_240 117 i77) and service Total transmission 8 513 and distribution 147 240 138 727 Customer accounting: 17 748 19 685 41 937 Labor 108 000 114 363 (6 363 Accounting 4 000 34 362 (3, 3 2 Uncollectible accounts -------- Total customer 12 748 168 410 (38 662) � accounting ...- Administration and general: 21 612 18 781 2 r31 Labor lob 416 87 919 53 4-41 2$4 Leases Other 90 71 ' 220 738 161 132 �9 606 Deprcciation 300 000 375 184 (75,i84) In-lieu tax 174 000 168 941 5 05 Total operating expense $1 7 0 086 $1 62 g82 ($22 196) See accompanying notes . 19 �i CITY OF HUNTIRGTON BEACH WATER UTILITY FUND STATEMENT OF CHANGES IN FINANCIAL POSITION For the year ended June 30, 1973 � i Funds were provided by: Net income $524 387 Plus items not requiring working capital - depreciation75 18'� i 899 5'r]. Funds were used for: Additions property and equipment 538 383 1963 water revenue bond repayment 100 000 Transfer to general fund for 11955 water bond redemption 43 575 i Other 229 682 257 Increase in working capital 2 i Changes in working capital are comprised of: 153 035 Cash Cash advanced to fiscal agent 5 313 Accounts receivable, net 9 277 T Due from other funds 1 07 General payables (105 359 Payroll payables 9 04i Due to other funds 176 063 Other liabilities 6 452 Matured interest payable (3 9761 Increase in working capital $.2l'�_314 I See accompanying notes. fi e?0 i CITY OF HUNTINGTON BEACH • ;TOTES TO FINANCIAL STATEMENTS June 30, 1973 1, Summary of Accounting policies : • A. Method of Accounting: The City, like most municipalities, uses a modified accrual basis of accounting under which expenditures are recorded when incurred and revenues are generally recorded when , • received. B. General Fixed Assets: The general fixed assets of the City Pre not included in the Cityfs books. C. Water Utility Plant, Property and Equipment and Depreciation: The accounts for the water utility plant include $17,?94,428 of property and equipment, less $2 276 821 accumulated depreciation. Of the total $17,79 ,426, $9,421,030 represents capital outlay at cost and $5,373,398 represents an amount for assets contributed to the City through June 30, 1968 by subdiviaers, at values estimated by City personnel. Contributions by subdividers since June 30, 1968 are not recorded on the books of the City. Depreciation is provided on the straight-line method over the estimated useful lives , i of the assets. D. Appropriations: tiThe City adopts abud et annually which appropriates amounts for each department or division. As of year-end the City i Council revises these appropriations. Amounts included in the financial statements represent original rather than revised appropriations. f E. Reserve for Encumbrances: i The City records obligations in the form of purchase orders, contracts and other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when the actual liability is incurred. Continued 21 s �i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued June 30, 1973 2. Cash: r At June 301 1973 cash consisted of the following: Active bank accounts $439 847 Time certificates of deposit 8 975 000 i Temporary investments in U.S. Government securities, at cost, which approximates market 803 coo Cash on hand 3 060 $lo 220 907 3. Bonded Debt Not Matured: Matured/ Original Balance Retired Balance Amount Not Matured During Not Matured Issue Sold July 1,_1972 .1972.-1 73 June 30, 1973 General obligation ones: 1970 park bonds, with interest rates 5.25% to 6%. Maturing annually on j March 1 in varying amounts with final maturity in 1-995 $6 000 000 $5 775 000 $125 000 $5 650 000 1955 water bonds with interest rates 2% to 3%, maturing on I August 1, in install.. nts of $35,000 to 1980 860 000 315 000 35 00 280 000 ' $6 86o 000 $6 0 o 000 $160 000 $5 930 000 Continued 23 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS., Continued June 30, 1973 3. Bonded Debt Not Matured, Continued: Matured/ Original Balance Retired Balance Amount Not Matured During Not Matured Issue Sold July 12 1972 1972-19?3 June O., 1973 Revenue Bonds: 1963 water revenue bonds Series A, 3.25% to 4.75% + maturing annually on November I in varying amounts with final maturity in 1993 $3 no 000 $3 360 000 $100 000 $3 260 goo The general obligation bond balance of 5,930400 represents a future liability of the City. The $3,2�0,000 wafer revenue bonds do not represent a general liability of the City of Huntington Beach. At June 30, 1973 there were $1,950,000 authorized but unissued 1963 water revenue bonds. Special assessment district bonds outst.ending totaled $93,667. j! 4. Contracts Payable: The City has water, sewer and drainage reimbursement agreements • developers cost incurred which provide for reimbursement to devel pe of c n In constructing water, sewer and drainage facilities to tha ' extent fees are collected from users of the Facilities. The City follows the practice of recording the fees as a liability as they are collected and charges payments to developers under the agreements to a liability account. Continued 24 CITY OF HUNTINGTON 13EACH NOTES TO FINANCIAL STATEMENTS, Continued June 30, 1973 5. Commitments and Contingencies: • The City has entered into lease agreements as follows: (a) Water storage capacity in the San Joaquin Reservoir for a term of 50 years commencing in 1967. (b) Parking facilities from the Huntington Beach Parking Authority commencing in 1969 for a term of 24 years or after all of the 1968 revenue bonds of the Authority are retired. (c) Civil Center buildings from the Huntington Beach Public Facilities Corporation, for a term of 30 years or after all of the debts of the Corporation have been discharged. The City expects to take possession of the facilities on July 1, 1974, when the initial payment will be due. (d) Library buildings from the Huntington Beach Public Facilities Corporation, for a term of 30 years or after all of the debts of the Corporation have been discharged. The City expects to take possession of the facilities approximately February 15, 1975, at which time lease payments will commence. The minimum annual rental commitment under the above leases is as follows: 15 1$272 270 525 1976 1 523 950 1977 1 518 950 1978 1 518 950 Five years 1979-1983 7 594 750 Five years 1984-1988 7 584 750 Five years 1989-1993 7 569 750 Remainder 14 27 325 Continued 25 I CITY OF HUNTING TON BEACH NOTES TO FINANCIAL STATEMENTS, Continued June 30, 1973 M 5. Commitments and Contingencies, Continued ; As of June 301 1973 the City is defendant in a number of suits arising in the normal course of business and covered by insurance. In addition to the above suits there is a class action suit against the City in the amount of $8,000,000 for which, according to the Office of the City Attorney, settle- ment is being proposed through the payment of attorney' s fees without further indemnification. I 26