HomeMy WebLinkAboutReport on Examination of Financial Statements - 6/30/73 i
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CITY OF HUNTINGTON REACH
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REPORT ON ;LAMINATION OF FINANCIAL STATDIENTS
# For the year ended June 30, 1973
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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
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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
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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
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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.
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iFLLC1.l, SPECIAL RFIT UE FUND "La`�'c•`'�• �E-;� ` 'S,•.•EN 3•lrY • .,S,r� '` .�;'�4`-.• . Ss: S` ,t '€i#• .a• ��
.TlI11a 30, 1973
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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
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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.
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BALANCE SHEET, DEBT SERVICE PURM
* June 303 1973 .
Whte M 1qq0 park { 4,`
1 a•�.N
Interest"and Bond Interest
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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
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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
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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
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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
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See accompanying notes.
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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.
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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:
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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
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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
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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
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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
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See accompanying notes. i
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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.
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- - .} _ - • 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