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Annual Financial Reports - Finance Department - HB Public Fa
" aff OF HUM WT N MACH i TABLE OF CONTENTS . 1 ' t Exhibit Page Letter of Transmittal 1 Elected City Officials 4 Departments of the City 4 Accountants' Report 5 Financial Statements: Combined Balance Sheet - All Funds A 6 General Fr-id: Baiance ;heet E 10 ' Stateme. : of Changes in Fund Balance C It Statement of Rev-.nue - Estimated and Actual D 12 jStatement of Appropriations, expenditures and Encumbrances E 16 i Special Revenue Funds: Combined Balance Sheet F 20 Combine.: Statement of Changes in Fund Balance G 22 L Statement of Revenue. Expenditures and Encumc;-ances - Budget and Actual : j Special Gas Tax Fund H 24 } Civic Improvement Fund 1 25 Sewer Fun ft 26 Planned Local Drainage Fund K 27 General Revenue Sharing Fund L 28 Federal Manpower Grant Fund M 30 _ Other Grants Fund N 31 Park Acquisition and Development Fund 0 33 Self Insurance Fund P 35 Traffic Safety Fund Q 36 Parking -heter Fund R 37 r I - -- CITY of HUNTINiGTONt BLACK TABLE OF CONTENTS Exhibit Page Debt Service Funds: Combined Balance Sheet S 38 Combined Statement of Revenue, EApenditur..s and Fund Balance (Deficit) T 39 e Capital Prcject Funds: t Combined Balance Sheets U 40 Combined Statement of Revenue, Expenditures and F"d Balance V 41 Enterprise Funds: Combined Balance Sheet W 42 Water Utility Fund: Statement of Revenue and Expenses % 44 Statement of Changes in Retained Earnings Y 45 Statement of Changes in Financial Position Z �5 ` Meadowlark Golf Course Fund: Statement of Revenue and Expenses AA 48 Statement of Changci in Accumulated Deficit Be 49 Statement of Chan-•- in Financial Position CC 50 Trust and Agency Funds: Combined Balance Sheet DD 51 Combined Statement of Changes in Fund Balance FE 52 • CITY OF HUNnN=N BFACH TABU: OF CONTEPTS i w Exhibit page Mares to Financial Ste tements 53 Supplemental Information Statement of General Fend Riwenues - Other than Prcp.rty Taxes Schedule 1 62 Stacement of Expenditures and Encumbrances for General Fund Schedule II 63 Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bond Debt to Assessed Value and Per Capita Schedule III 65 4 Statement o'° Tax Delinquencies and Imp -unds Schedule IV 66 Statement of Future General Obligation Bond Debt Requirements by Year Based an Bond Debt Schedule V 67 Statement of Future Water Revenue Bond Requirements by Year on Outstanding Debt Schedule VI 68 Huntington Beach Public Facilities Corporation - Statement of Bonded Debt Schedule Vil 69 Huntington Beach Public Facilities Corporation - Statement of Future Debt Requirements by Year Based on Bonded Debt Schedule Vill 70 Parking Authority of the City of Huntington Beach - Statement of Banded Debt Schedule IX 71 Parking Authority of the City of Huntington Beach - Statement of Future Debt Requirements by Year Based on Bond Debt Schedule IX 71 City of Huntington Beach Public Facilities Corporation I Accountants` Report 72 t Financial Statements Combined Balance Sheet A 73 Combined Statement of Earnings and Retained Earnings (Accumu)ated Deficit) B ;A Combined Statement of Changes in Cash Position C 75 Notes to Financial Statemvnts 76 City of Huntington Beach Parking Authority Accountants' Report 81 � s CITY OF HUNMGTON BEACH — I TABLE OF CONTENTS • Exhibit Page City of Huntington Reach Parking Authority, Continued Financial Statements 8a1anLe Sheet A 62 Statement of Earnings and Retained £arnin,-s a 83 j Statement of Changes in Financial Position C $$ Notes to Financial Statements 85 1 R Crff OF HUhiTING'TOF Bilvl.CK I OFFICE OF DIRECTOR OF FINANCE FRANK B. ARGOELLO, DIRECTOR 1 Mr. Floyd G. Belsito City Administrator City of Huntington Beach, California Dear Mr. Belsito: I Submitted herewith is the Finance Department s annual report containing the City's financial statements for the fiscal year ended .tune 30, 1977. The comprehensive report covers all funds, reflects the results of ell financial transactions, and represents the culmination of all a:counting processes carried out during the fiscal year. � . General Fund Revenues and transfers from Other Funds for general fund purposes totalled $27.541 .643 in FY-1977, an Increase of 16% over FY-1976. The amount of revenue from various sources and the increase (decrease) over prior � year Is as follows: Percent increase (decrease) Source Amount of Total Over ry-1976 Property Taxes 10,643,971 38.6 $ 2,031 ,165 Other Local Taxes 6,785,656 24.6 1,063.553 { Licenses and Permits 2.817,209 10.2 228,277 4 Fines and Forfeitures 21.4,808 .8 79,592 From Use of Money and Property 1,050.938 3.8 143.468 E From Other Agencies 2.567,992 9.3 527,785 From Charges for Current Services 942,760 3.4 116,848 Other Revenue 48,714 .2 (563) Transfers from Other Funds 2,469,595 9.1 (350,274) Total S 27,54i,643 t00.0% S 3.839.851 Gross expenditures ane- encumbrances for general fund purposes totalled $21,993,705 in FY-1977, an Increase of 16.4% over FY-1976. Expenditures and encumbrances by function are indicated as follows and demonstrate changes in axpenditure and encumbrance levels relative to prior fiscal year: f � 1 .� ----- CI'f'y t)F HU1kTIPiGTQN BEACH Increase Percent (Decrease) Function fount of Total Over FY-1976 Administrative Services $ 2,817,679 10.1 (57i,421) Community Services 8,183.433 29.3 1 ,279.800 Public Safety Services 14,391,957 51.5 1 .954,769 'support Services 2,540,63,6 9.1 1 ,285,456_, Total direct costs 27.933,705 100.0% 3,942,604 Less: applied costs (transfers from other funds) 765,000 2.7 (961 .568) Total S 27,168,705 97.3 4,904o n The unappropriated general fund balance increased from $1 .826,067 to $2,850,079 in FY-1977, an increase of S1 ,024,0123or 56%. This is the second consecutive year that the City`s unappropriated fund balance has in- creased significantly and is a positive indication that our financial position is on a relatively sound basis. Assessed va Nation increased by $1419,455.785 to $710.079,235 in current fiscal year. Current assessed valuation Is 22.3% greater than that of the prior year and has been made possible because of continuing re-valuation if property and addition of new construction to the tax rolls. A comparison of assessed valuation over the last three years with anticipated FY-1978 assessed valuation is as follows: f Assessed Increase Over Prio* Year Fiscal Year Valuation Amount Percent 1978 854,321 ,745 144,242,510 20.3 1577 710,079,235 129,455,785 22.3 19?6 580.623.450 50,650,140 9.6 1975 529.973,310 87.701.652 19.8 Outstanding general obligation bonds as of June 30. 1977 totalled $5,2:0,000, comprissd of $140,000 outstanding on the 1955 Water Bond !%sue and $5,080.000 outstanding on the 1970 Park Bond issue. There is, as of June 30, 1977, $2,830,000 outstanding on the 1963 Water Revenue Bond ►-,ut this does not represent a general obligation of the City of Hgntington Beach. The tax rate necessary C.i corer bond interest and redemption on the general obligation bond issues totalled $.07449 per $100 of assessed valuation 1n FY-1977 and is anticipated to he S.05904 per $]GO of assessed valuation in FY-1978. f . ' MY OF HUNMGTON BBACH ! Comparative data for the City's Water Utility operations for the past two years is as €ollows% 1977 1976 Total operating revenue $ 4,252,495 3,66e,608 get I nemme 111095,O24 631,222 A supplemental information section has been included in this report which contains =omprehensive statistical 1 data. Such data is presented so as to relate physical, economic, social and political characteristics of our City which should give the readers of this report a more broad and more complete understanding of the City and its financial operations. In accordance with Section 1219 of the City Chartar, the City Council shall employ at O e beginning of each fiscal year an independent certified public accountant who shall examine the books, records, inventories and reports of all officers and employees who receive, control , handle or disburse public funds. The r::port of Peat, Barwick, Mitchell s Co.. Certified Public Accountants, is included is this report. i I wish to express my appreciation to the members of the Finance Department withoet whose dedicated effort this report would not be possible. In addition, I would express my appreciation to you zed the City Council for the cintinuing support and interest in planning and conducting the fiscal affairs of this city in a { responsible and progressive manner. l Respectfully submitted, Frank B. Arg to Director of Finance 3 i - CITY OF HUNTINGTON SUCH ELECTED OFFICIALS City Council Ronald R. Pattinson Mayor Ron Shenkman Hayor Pro Tom Ted W. Bartlett Councilpersun Alvin H. Coen Councilperson Norma B. Gibbs Counciiperson Richard W. Siebert Cowicl:person Harriett M. Wieder Cour-iiperson ; 1 Other Don P. Bonfa City Attorney Warren G. Hall City Treasurer Alicia H. Wontwcrth City ClerkDepartments of the City 1, Floyd G. belsito City Administrat-3r Richard A. Harlow Assistant ;.ity Administrator Frank 8. Arguello Director oe' Finance John F. Beh;cns Building and Community Development C;rector Henry H. Hartge Director of Pubitc Works Walter W. Johnson Library Director v;ncent G. Moorhouse Harbors & Beaches Director Raymond C. Picard Fire Chief ` Earle W. Robitaiile Police Chief Edward Sellch Planning and Environment Director Edward Thompson Personnel Director Norman L. Worthy Recreation S Parks Director i i PEAT, MARWICK, MIT'CHELL +fit CO. CENTMIaD PUBLIC AC MUNTI;-NT!� aeo xaw"Wr cwrran ORIVS !!awroA7 Doane 1 The Honorable City Council of the City of Huntington Beach, California ' vle have examined the financial statements of the various funds and account groups of the City of Huntington Beach for the year ended June 30. 1977 (Exhibits A through EE, on Pages 6 through 61) . as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards, tnd except as to the General Fixed assets Group of Accounts and as explained in the third paragraph below, in- cluded such tests of the accounting records and sucl, other auditing procedures as we considered necessary in the circumstances. As cAplained in Note 1 of notes to financial statements, the City has not maintained a detail record of its general fixed assets. Because we were unable to satisfy ourselves by appropriate audit tests or by other j means, as a result of such incomplete records, we are unable to express an opinion on the accompanying fi- nancial statements of the General fixed Assets Group of Accounts. As explained in Note I of notes to financial statements, the Water Utility Fund does not maintain adequate i detail records of its fixed assets. The amounts by which the flaanciai statements would change if appropri- ate records were maintained, cannot be determined. { in our opinioi, the aforementioned financial statements, except for the General Fixed Assets Group of Accounts and the Water Utility Fund. present fairly the financial position of the various funds and general long term debt group of accounts of the City of Huntington Ceach at .tune 30, 1977 and the results of operations of the various funas and changes b: financial position of the Mea,;awlark Gulf Course Fund for the year then ended In conformity with genera►ly accepted accounting principlei applied on a basis consistent with that of the preceding year. Also, in our opin;-+n, Pucept for the effeets of such adjustments, if any, as might have been determined to be necessary had adequate detail fixed asset records been maintained, the financial state- ments of the Water Utility Fund present fairly its financial position at June 30, 197' and the results of its operations and changes in its financial position far the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. j November It , 1977 CITY OF H1' NIM ,TON BEACH COMB I NtD BALANCE SMT • ALL FUNDS JUNE P, 1977 Special Debt General Revenue Service iFund Funds funds Assets Cash and term deposits S 41825,206 10,556,122 52,101 Accounts receivable, net 70,811 727.041 Delinquent property taxes receivable-not of reserve for delinquent taxes 100,289 4.821 Notes receivable Investments at cost which rpprox;,ate market (Note 5 10,447 Other receiviiM es Due from other funds 210,160 Die from other governmental un;ts, net 8?,001 1 ,658,205 Prepaid expenses 313,421 Deposits 8,70G Nnt project costs Amount to be provided for debt retirement t Amount to be provided under financing leases (Note 3) f Leased facilities under financing leases (Nnte 3) Property plant and equipment,net of allowance for depreciation _ Restricted assets - cash and investments i Total assets G 068 56,922 S 5.7�,340 12.g5 , See accompanying notes to financial statements, j CITY OF HUNTINGTON BTACH COMBINED BALANCE SKEET - ALL FUNDS kXltla1 f A .DUKE ).0, 1577 • Capital Trust General General Projects ;nterprise and Agency Long Term Fixed funds Funds Funds debt Assets ( (Unaudited) t . 91,flb4 1,935,449 765.083 204,021 61300 202.797 196,305 R 9,40 32,269 1 42,b5i 5�425,§y0 � ' 13,292,698 ` 13,292,698 • 20,716,322 18.563,761 1 1 91 ,864 23,402,711 1 .116,831 18.718.188 11 ,856.459 I ' { 7 1 CM OF HUMN&TON BEACH CMINED BALANCE SHEET - ALL. FUNDS JIJWE 30, 1977 Special Debt General Revenue Service Liabilities, Reserves, Fund Balances fund Funds Funds and Retained Earnings Liabilities: Cash overdraft S 489,303 17,462 Accounts payable and accrued expenses 1 ,601 ,608 366,783 Prepaid revenue 104 4 Customer deposits 229,743 Due to other furat 1,448 491,000 Accrued Interest payable Current iristallment of bones/notes payable (notes 2,6, and 7) natured interest payablo Deferred rental Inco+ra (Note 3) b13,381 1 Special assessment tonds and Interest p+. -ale Bond interest payable in future years Obligation undetr capital leases Sonds, net of current Installment (note 6) Notes payable, net of current installment (Notes 2 and 7! Total liabilities 1.936.241 I2 0 17.462 Encumbrances outstanding 1 746,796- Reserves; Contributions, Fund Balances and Retained Earnings Reserve for revenue brnd retirement Reserve for workers' compensation disability claims 260,418 Other 156.035 � Total reserves za1 m r, _ f Contributlr�ns: Contributions in aid of construction Contribution from general fund Total contributions - Fund balances: Unappropriated fund balance 2,850,079 8,564,968 3S.4000 Apprnpriated fund balance 25,000 220 872 Total fund balarces 2,L"75,079 EJY5140 p Reserve for Investments In general fired assets Retained earnings Commitments and contingencles (Notes 4 and 8) Total liabilities, reserves, fund balances and retained earnings S 5,765,340 12,950,068 56,922 See accompanying motes to financial statements. S t . ..-. fiT1r OF ififN'!iNG+TaN REACH CO"i NED BALA11Ct SHLET - ALL FUNDS kXH IE I T A, Continued JUN€ M, 1977 • Capita' Trust Genera) General Projects Enterprise and Agency Long Term Fixed Funds _ Funds Funds Oebt Assets i (Unaudited) 249,103 1,326 77,438 162,3" 250,000 16,590 133,768 300,478 5,822 36,877 13,292,698 21?10,OOG — 5.020.000 1,932,405 105 012 5,125,12 CIS ,571 18.71�.!$� 540,127 - - - 27, 10.268,252 91,864 656,2b0 6,109,274 f ' 91,K64 23Z 02,711 6,831 18,718,188 51 ,856,459 i 071 OF HUNInNGTON BEACH GENERAL FUND EXHIBIT 8 BALANCE SHEET JURE 30, 1977 Assets Cash and term deposits $ 4,825,206 Accounts receivable - net 70,811 Delinquent property taxes receivable - net 100,288 Due from other funds 210,160 Due from other governmental units 87,007 Investments, at cost which approximate market (Note 5) 158,447 Prepaid expenses 313,421 Total assets 5.765,340 Liabilities, Reserves and Fund Balance Liabilities: Accounts payable and accrued expenses S 1 ,601,608 1 Prepaid revenue 103,444 1 + Customer deposits 229,743 Due to other funds 1 ,448 Total liabilities 1 ,936.243 Encumbrances outstanding 954,018 Fund balance Appropriated fund balance 25,000 Wappropriated fund balance 2.850,079 Total fund balance 2,875,079 S Total liabilities, assets and fund balance S 5,765,340 See accompanying notes to financial st,Lenents. 10 i t - CITY OF RUIMNG'!OM BEACH — GENERAL FUND EXH1$1T C STATEt4EHT OF CHANfES iN FUND BALANCE YEAR ENDED JUNE 30, 1977 Fund balance, MY 1 , 1976 $ 1 ,826,067 Add: 27,541 ,643 Revenues 6620483 Cancellation of 1976 out:tanding encumbrances 13,591 Transfer of excess special assessment equity , 28,217,717 ( Total add=ts-nl_ Deduct: 27,168.705 zxpenditures and encumbrun:-es Fund balance, June 30, 1977 $_2.875,079 i See accompanying notes to financial statements. i . I ' CITY OF HUNTINGTON BEACH GENERAL FUND EXHIBIT 0 STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 1977 • Excess of Actual Percentage Revenue Over of Original Revised Actual sunder) Estimate _ 8udge_t_ fhange Budget Revenue Estimate Aralized General Property Taxes Current taxes - secured $ 9,674,1300 689,78U 10,364,588 10,021 ,748 (342,840) 97% Current taxes - unsecured 509,200 101,642 61O,a42 60O,596 (10,246) 98 Interest and penalties MOOD (15,000) 20,000 17,220 (21780) 86 Aircraft 4,000 _ 4ZL 4,477 4,407 .1 0} - �2 Total general property taxes 10,223,000 776 9: 07 10,299,207 10,643,971 (355.936) 97 Other Local Taxe,. Sales and use tax 4,617,000 4,617,000 51205,890 598,890 113 Franchises - utility 44O,0D0 44O,09O 415.659 (24:301) 94 Franchises - pipeline 10,000 10,000 19.715 9,715 197 in lieu - water utility 520,000 520,000 567.036 47,036 109 Occupancy tax 70,000 MOGO 76.530 b,530 l09 Cigarette tax 545,000 545,000 498,782 (46,218) 92 Real property transfer tax -0- 2,004 2,004 - Totai other local taxes 6L202,000 6,202,O00 6,785,656 583,656 109 Licenses and Permits License - business 545,000 545,004 544,367 (693) 100 License - all well production 1,200,000 1,200,000 1 ,051,893 UB License - bicycle 2.0,000 2O,00O 18,356 0 ,644) 92 License - oil inspection 76,000 76,000 75,850 (150) 1O0 License - animal 160,000 160,0OO 150,821 (9.179) 94 Permits - building 435.320 435,320 571 ,E-49 I36,O89 131 Permits - plumbing 105,720 1O5.72O 128,919 23.1% 122 Permits - electrical 1111955 111,955 135,83O 23,875 121 Permits heating 47,005 47,005 6.- ,862 14,857 132 Permits - waste water 20,00O 20,000 21,630 1,b3O 108 Permits street and curb cut S 40,000 40,000 371-150 (2.950) 93% 12 '1 CITY OF HUNTINGTON BEACH f GENERAL,FUND EXHIBIT D, Continued STABEHENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 19,7 Excess of Actual Percentage c.. Revenue Over of Drtginal Rpvlsed Actual (tinder) Estimate Budget Change Budget Revenue Estimate Realized i Licenses and Permits, Continued Permits - other g 12.000 12.000 '_ t82 7,282 161% Total licenses and permits 2,773,00^_ 2,773,000 2,817,209 44,209 102 E Fines and Forfeitures i Court fines 125,0G0 125,000 186,876 61,876 150 Library fines and fees 17,000 17,000 27,93Z _ 10,932 '164 Total fines and forfeitures 1 2,000 142,000 214.808 72,808 151 Use of Honey and Property Interest income 130,000 130,000 194, 83 64,783 150 Lease - Huntington Driftwood 96,000 96,000 107,3y6 11 ,366 1*2 Rentals - land 24,0G0 24,000 25,451 1 ,451 106 Rentals - park buildings 39,259 39,259 i4,386 (24.873) 37 l Rentals - pier and concessions 25,000 25,000 39,296 14,296 157 Rentals - beach and concessions 90.000 90,000 103,287 13,287 115 I { City oil wells a0,000 90,000 69,900 (20.100) 78 1 Royalties and easements 90.000 901000 83,420 (b,560) 93 Royalties - park 1,000 1,000 798 (202) ao Parking lots 393,000 393,000 361A05 (31 .595) 92 Sunset vista camper facility 38,1fq 3911;4 Showmobile rental 683 683 - Community gardens 244 244 - Central Park concessions 7,000 7,000 10,217 3,217 146 Gther 30,000 (25,D0U_ 51000 1 ,528 (3,472) 31 Total use of money and property $1 ,008,259 _ 118 000) 990,259 ) ,050.938 60.679 I 13 4 CITY OF HUMONGTON RUM GENERAL, FUND EXHIBIT D, Zon t i nued STATEMENT OF REVENUE - ESTIMATEC AND ACTUAL YEAR ENDED J NE 30, 1977 Excess of Actual Percentage Revenue over of Original Revised Actual (Under) Estimate Budget Lhange Dudget Revenue Estimate Realized Revenue from u jr Agencies Trailer coach ilcense 75,000 75,000 102,947 27,947 137% Alcoholic beverage fee 55000 55,000 40,738 (14,2b2) 74 County lifeguard and maintenance 110,000 110,000 92,959 (17,041) 85 Documentary transfer tax 200,000 200,000 319,866 i19,866 160 State oil and gas lease 100,000 100,000 77,015 (22.985) 77 Federal government -0- 2,421 2,421 Motor vehicle in lieu 1 ,57a,000 1 ,578,000 I M2,217 104,217 107 Bagley conservation fund -O- 1,405 1,405 - Joint Powers - Fire 116,000 116,000 139,00 23,600 120 Injury leave reimbursements 61 ,728 61 ,728 - State mandated cost reimbursements 14,336 i4,336 - Other 10,000 10,000 32.760 22.1,60i 337 Total revenue from other 2,244,000 2,244,000 2.567,992 323,992 114 agencies Charges for Current Services Zoning and subdivision 30,000 30,000 48,292 18,292 i61 Sale of maps and publications 8,GOO 13,000 9.691 1,691 12. Oil well application fees 4,000 4,000 1 ,375 (2,625) 34 Misc. filing and cent. fees 11000 1,000 1,000 l00 Plan check fees 160,000 lb0,000 284,407 124,407 178 Engineering and inspection fees 160,000 150,000 203,U25 430S25 127 Need abatement 25,000 25.000 29,732 4,732 119 Special Police services 29,488 29.488 - Recreation fees 168,259 168,259 128,688 (39.371) 71 Recreation contract 90,000 31000 93,000 104,119 11 ,119 112 Exemption declarations 8,000 13,000 9,020 '. ,020 113 Water quality analysis 2,000 2,000 1,041 (959) 52 1 Junior lifeguard program 11,022 11 .022 13,163 2,141 119 L.=brary service 12,000 12,000 8,569 (3.431) 71 Post reimbursement $ 80,000 80,000 35.215 (44.785) 442 14 CITE'OF HUNTINGTON BEACH GENERAL FUND EX41 BIT D, Continued -STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR kNDED JUNE 30, 1977 • Excess of Actual Percentage i Revenue Over of Original Revised Actual (Underi Estimate Charges for Current Services, $udget Change Budget Revenue Estimate �. Realized Continued - Adventureland $ 2,000 2,600 735 (1 ,265) 37% Certificate of occupancy fees 5,000 5,00 9,289 4,289 186 Geological review 5,000 51GOO (5,000) - t Grading plan check fee 1 ,885 1 ,885 - Sanitation District fee 14,926 14 926 - ! Special plan check fees 7,172 7072 - Other 928 928 - Total charges for current - services 771 ,281 3,000 774,281 942,760 968,479 122 1 . Other Revenue Sale of property - equipment 15,000 15,003 14,582 (418) 97 Sale of merchandise 2,000 2,000 6,071 4,071 304 Discounts earned 51000 5,000 4,916 (84) 98 i Special fees - engineering 4,000 41000 (4,030) - I Spheral fees - inspection 3,000 3,000 4,115 1 ,'.15 13Z 3,000 3,000 19,030 16,030 63 Total other revenue 32,000 12,000 48,714 16,714 152 i -- Total general fund revenue 23,395,540 761 ,907 24,157,447 25,072,048 914,601 103 i Transfers From Other Funds Special Gas Tax Fund 396,000 396,OnO 403,733 7,73- 102 Civic Improvement Fund 1 ,585,000 1.585,000 1 ,521 ,G00 , (64000) Q6 Traffic Safety Fund 400,00{t 440,000 3T8,517 (64,00 ) 95 Parking Meter Fund 105,000 105 000 125,607 21 ,607 121 Water Utility Fund 39,400 39,400 39,400 Other _ 338 338 Total transfers 2,525,400 2 525.E+00 2,469,S95 (55,805) 98 Total General Fund revenue and transfers S25,920,940 761,9G7 26.682,847 27,541 ,643 858,796 103 t See accompanying note= to financial statements. 15 - CM OF HUNMNGTON BEACH GENERAL FUND STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES YEAR ENDED JUNE 30, 1977 Appropriations Expenditures Personal Maintenance Original Revised Services and Capital Budget_ Change Budget Cost Operation Outlay Administrative y City Council S 59,533 14,`.83 74,116 36,819 26,550 735 Non-Departmental 2,933,550 (419,732) 2,513,79 2,143,784 Administration 347,483 63.753 411 ,2;6 329.124 71 .n65 697 Civic Promotion 55.604 44,5b1 100.165 4,8156 48,618 Total Administrative 3.396.170 (296,855) 31099,315 372,829 2,290.017 1 .632 Community Services Planning 544,113 52,4�5 596.538 475,624 32,678 2,489 Library 915.437 123,525 1 ,038,962 680.845 217,326 12,404 RecreatiOFI and Parks 1,571 ,453 144,8bi 1,716,314 1 .283,055 311 ,240 24,838 Public Works 4,865,rS1 510.007 5,375,508 3,074.166 1 ,1154,110 178,760 Total Community Services 7,896,504 830,818 8,727,322 5.513,690 2,015,354 218,431 Public Safety 4.047,4h8 313,4i7 103,752 Fire 4:293,790 409,064 4,702,tS54 Police 7,02b,498 636,884 7,663.382 6,827,177 620,901 221,290 Harbors and Beaches 1,079,06i 64 456 1 ,143,921 805,412 312,612 375 Building 797,25;'_ _ 55,219, 852,476 796,350 19,924 5.668 Total Public Safety 13,196,6i0 1 ,166,023 14,362,633 12,476,387 1 ,266,854 331,085 Support 102 334 Treasurer 1 ,206,923 14,889 1 ,221,812 1 ,073,925 4,330 Attorney 279,155 18,566 297.721 243,Ob5 27,179 21 Clerk 94,222 23,967 118,189 81 ,385 19,652 1.943 Personnel 192,53U 14,362 20b,900 128,358 43,v04 1 ,252 Finance 738,81tt _ 42,920 781 ,738 621 ,150 138,154 6,696 Total Support 2,511,b56 ' 14,704 2,626,360 1 ,176.292 1.302,814 14.242 Total General Fund Direct Costs $27,000,940 1 ,814,690 28,13(5,630 19,539.198 6.87;,039 565,450 i6 i CITY OF HUNnNGTON BEACH GENERAL FUND EXHIBIT E STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCE YEAR EIiAEO J1}NE 3D, 1977 j Ens mbr�n � Percentage - Total Excess of Appropriations Outstanding Expenditures and Over tUndcrl Expenditures of Appropriations Encumbrances Encumbrances and Encumbrances Used 8,809 74,913 (7797) 101% 115,194 2,258,978 254420 90 3,094 404.180 ,557 056 98 20 26,1o4 _ 79,608 79 153.201 2,817,679 281 ,636 91 _ 8,988 519,779 76,759 87 93,276 1,003,851 35,111 97 ,053 I ,668,18b 48128 97 49 _ 24905 �+,991 ,517 383:891 93 435,898 $-183,433 543,8$9 94 i 210,01%9 4,6l4,b66 28,188 99 7,744,874 {81 ,492) 101 75,506100 26,525 1 ,144,924 (1 ,003) 97 5,551 827,493 24.983 k 29,324) 313.6'!1 i4,391,557 ( __ ` 1 ,206,947 14,865 99 26,358 2681� 91 , 642 270,907 14,717 88 492 )03.472 84 537 1 74,051 2,84yy 15,259 7$51259 3,521) -- _97 47,288 2,540,636 85,724 - _9b 27,933,705 881 ,925 9� 954,018 --- ---------- 17 1 ' - - CITY OF HUN17NGTON BF.ACIF -� GENERAL FUND STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUYBRA6CES YEAR ENDED JUNE 30, 1977 Appropriations Expenditures Personal KaIntena;Ze Original Revised Services and Capital Budget Change Budoet Cost Operation _ Outlay less Applied Costs Revenue Sharing Fund S 765.000 765,000 486,952 278,o4B_ Total applied costs 765,000 765,000 486,952 278,048 Net General Fund S 26,235,940 11814,690 28,050,630 19,052,246 6,875.039 287,402 i f See actsipanying notes to financial statements. I 41 } I l3 --- CiTY OF HUMNGTON REM.-! GENERAL FUND EXHIBIT E, Continued S''ATEMENT :,r APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES • YEAR ENDED JUNE 30, 1977 Encumbrances Total Excess of Appmpriations Percentage Outstanding Expenditures and Over (Under) Expenditures or Appropriations Encumbrances Encumbrances and Encumbrances Used 765,000 iOD$ 765,000 .Do 954,018 27.168,705 881 ,925 970b' I � � i I S_ 1 19 -- 4 ©TY OF HUNIMNGTON 'BEACH SPECIAL REVENUE FUNDS COMBINED BALANCE SHEET JUNE 30, 1977 Special Civic Total Gas Tax lrprovement Sew--r 1 Assets i Cash and term deposits $10,556,122 2,766,478 923,490 1 ,69S.564 Accounts receivable, net 727,041 234,529 492,512 Due from other Sovernoentai units, net 1 ,658,205 373,389 26.564 7.898 Deposits 8,700 8.701D Total assets $ 12,950,068 3.139,867 _ 1 ,184,56_ _2,204.674 Liabilities, Reserves and Fund Balance Liabilities: ! Cash overdraft $ 489.303 . Accrued payroll 102,375 Accounts payable 264,408 1 ,306 183,680 Deposits 512 Due to other funds 491,0G0 Deferred rental income 613,381 613,381 Total liabilities 1 ,960,279 1 ,306 l 797,061 l Encumbrances outstanding 1 ,'06,T96 547,126 39,230 Reserves: Writers' compensation disability claims 260,418 Other 156,035 - 84,584 - Total Reserves 1 53 - ,5 Fund Balance (deficit) Unappropriated 6,564,968 2,591 .435 302,938 2,165.'+44 Appropriated 220,872 Total fund balance 4,785,840 2,591 .435 302,938 2,165.444 Total liabilities, reserves, and f„nd balance $12.950,068 3,139.867 1 ,184,563 2,204,674 See accompanying notes to financi_11 -tatements. 20 s � i . f3TY OF HUIMNGWON BEACH SPECIAL REVENUE FUNDS EXHtBIT F COMBINED BALANCE SHEET JUNE 301, 1977 Park Planned Federal Federal Acquisition Local Revenue Manpower Other and Salf Traffic Parking I Drainage Sharfnq_ Grant Grants Development insurance Safety Meter 1,974,625 58.,086 1.787.516 826,763 - lb,046 348,464 706.779 119,338 55.054 4,673 i 1 ,990,671 930,150 706,77? 119,338 1 ,842,570 831 ,436 349,693 139,610 96,616 4,729 1 ,030 73.857 385 2,133 3,047 512 491 ,000 _ I 491,000 - 520,166 144,724 2.b45 4,077 - - 195.870 W6,443 5,505 6bi,729 30,ts04 49 - - - 260.,418 31 ,226 1 ,225 39,000 - 31-,226 _ - - 1 ,225 39,000 1 ,051,703 623,707 181 ,108 (08,340} 1 ,770,121 566,852 220,872 1 ,272,575 623,707 181,108 (688,340) 1 ,770,121 566,852 1 ,990,671 930,150 706,779 119,338 1 .842,570 831 ,436 - 1 - ( 21 i . CITY OF HUNIMOTON BEACH SPECIAL REVENUE FUNDS f COMBINED STATEMENT OF CHANGES IN FUND BALANCE i YEAR ENDED JUKE 30, 1977 I Special Civic Total Gas T4x Worovement Sewer Fend balance (deficit) at July 1 , 1976 a 6,062,038 1 ,784.031 277,730 2,G54,550 Additions: Excess (deficiency) of revenue over expen- ditures and encumbrances 1 ,510,406 (190,518) 22,590 (92,068) Cancellation of encumbrances outstanding at July 1 , 197E 1 .299.555 9:7,922 2,61E 202,962 Total fund balance and additions 8,871 .999 2,591 ,435 302.938 2.165,444 Deduct i osis: Repayment of excess grart funds received 86,159 _1 Fund balance (deficit) at .tune 30, 1977 $ 8,785,840 2,591 ,43.. _ �02,938 2,165,444 i See accompanying notes to financial statements. y i 22 CITY OF ii}l iN"NCTON BEACH -----r SPECIAL REVE6111: c"UNDS EXHIBIT G COMr " 40 STATEMENT OF CHANGES IN FUND 3ALANCE YEAR ENDED JUNE 30, 1977 Park 4 Planned Fderal Federal Acquisition Local Revenue Manpower Ocher and Self Traffic Parking Drainage Shiring Grant Grants Development Insurance Safety Meter { 615,061 212,607 (103,311) 6,875 1 ,146,015 68,481 4 (698,624) 97 $7i b57,51�+ 341 ,637 3 7,973 4 624o3i , 69,463 22,605 3,409 75 Soo .`- 1 ,272,575 623,707 267,267 (688,340) 1,770.121 565.852 - - 1 1. 86,159 j 1.272.575 623,707 181 ,108 (688,340) 1 ,770.12i 566,852 - - 1 t 23 1 - CITY OF HUNTING'V%"i BEACH SPECIAL REVENUE FJNDS ;XHIBIT N � ,CiAL GAS TAX FUND STATEMENT OF P.EVENUc, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL 4 i�YEAR ENDED ,TUNE 30, 1977 , # Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: b Interest income 5 50,000 50,000 119i766 State tax: Section 2107 638,000 638,000 672,888 Section 2107.5 10,000 10,000 10,G00 Section 2106 713,000 713,000 160,682 1 ;�„ Total revenue 1 ,411 ,000 1 ,411,000 1 ,563,336 Expenditures a-a encumbrances: ' o Genera: F 6 000 6 000 403 733 403.733 Transfer tc Genera, and 39 39 , Capital Traffic sionals 28,839 d5,773 114 M 2 64,693 8,152 72,t545 .street irprovements 1 ,242,569 949,088 2,191,657 735,907 538.975 1 ,274,8d2 Engineering 10,000 10,000 2.395 (1) 2,35k Other 1 ,083,516 (1,444,863) 38,653 Total expenditures and encumbrances 2,750,924 (2) 2,750,922 1 ,206,728 547026 1 ,753,854 } Excess (deficiency) of revenue =_= `='' over expenditures and encum- brances $ 1 ,339,924) (2) (1 ,339,922) _ t1gO,'- � See accompanying notes to financial statements. 24 rt CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXri t B i T 1 i CIVIC IHPFtGVEMENT FUND EXPE1401TURES AND ENCUMBRANCES STATEMENT OF REVENUE, BUDGET AND ACTUAL. t YEAR ENDED JUNE 30, 1977 Budget Actual Original Revised BL ' ,,tt Change Sudaet Expenditures Encumbrances Total Revenue: Rental Incocw_ 14 52 S, Interest income S 30,000 30,000 31 .E+5^ F �� Utility taxes: Water 165,000 165,000 155,541 3 `y Gas 501,000 501 ,000 452,2190 Telephone 798,000 798,000 632,673 Electricity 1 ,345,000 1,345,000 1 ,31U,693 l i Sale of surplus land 5,533 Total revenue 2,839,000 2,839,000 ry T^^ Expenditures and encumbrances: 4 `' Transfer to General Fund 1,582.195 2,805 1 ,585,000 1 ,521 ,000 1 ,521 ,000 Civic Center Icase 854,900 854,900 854,900 854.9004=-ti: 3` ;.; Li;jrary lease 399,000 399,000 399,000 399,000 Ca itai outlay 3, 67 (2,605) 362 2,aO5 2.805 - 2,437 .437Ot r2.437 _ Total expenditures and r i - 4 encumbrances 2,839,262 - 2,839,262 2,780,142 2.780,142 � Excess (deficiency) of revenue : t ovet• expenditures and encum- brances S (262) (262) 22,590 f }- See accompanying notes to financial statements. F 25 E 4 CITY OF HUN'i7Pl6Tt)N BEAC>Ei --r----- SPECIAL REVENUE FUNDS EXHIBIT J SEWER FUND { STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1977 _ Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances _ Total Revenue: r -' Interest income $ 7:.,000 75,000 86,264 Sewer permits 105,600 105,600 150,434 Local assessments 134,400 134,400 1133,811 Special assessments $,5b7 Total revenue 315,000 - 315.000 - - 359,076 Expenditures and encumhrances: ` =� Sunset Beach Sanitary District 203, 122 203, 122 191 ,594 191 ,594 lieil,'Bolsa Chica 186,354 186,354 167,828 18,526 186,354 k Pump Station C improvements 15,000 15,000 487 11,762 12,249 Master sanitary sewer plan 2,000 2,000 2,000 2,000 Appropriations 20,929 20,929 (10,762) (10,762) Sewer mains 13 13 13 13 Sunset Beach sewer meters 10,000 10,000 16 7,369 7,385 Newland Street improvements 14,170 14,170 14,170 14,170 Stewart Street sever 16,471 16,471 14,7'.4 t,573 16,317 Warner Avenue sewer 10,063 10,063 2t,�b 1 43 Other , ; Total expenditures and encumbrances 203,122 275,000 478,122 _ 411 ,914 39,230 ^451 ,144 , I ' Excess (deficiency) of revenue over expenditures and encum- brances S 111 ,878 (275,000) (16L 122) 92 068) See accompanying notes to financial statements. .K k 26 CITY OF HUNMNGT43N BU.Q4 + SPECIAL REVENUE FUNDS gXNIBIT K PLANNED LOCAL DRAINAGE FUND • STATEMENT OF REVENUE, EXPEND'o ,URES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED .TUNE 30, 1977 Budget Actual Original Revised i Budget Change Budget Expenditures Encumbrances Total Revenue: Interest income $ 75,000 75,000 82,077 Local assessments 675;000 675,C00 923,332 Special assessments _ 31 ,980 1 ' Total revenue 750,000 - 75C,000 - - 1 ,037.389 Expenditures and encumbrances: ,. Graham Street storm drain 4,800 4,800 Drainage District #7 54,486 54,06 Beach Blvd. storm drain 2,000 2,00 1 ,862 1 ,862 �n- Avenue s o rm drain i n 12 4 12 4 12 4 Ada � t 12 4 3 39 39 3, 9 3, 3 3, 39 Solsa Chica storm drain 197,070 197,070 1 ,109 195,870 196,979 f Delaware St. storm drain-Phase I 500 500 52,795 _ 52,795 Other 750,000 (377,495) 372,505 • Total expenditures and 005 195,870 379.875 i encumbrances 750,000 - 750,000 _ 184, E Excess of revenue over expendi- tures and encumbrances S - - - - - 6572514 I See accompanying notes to financial statemgnts. r - �7 ! CM OF YUKnNGTON BEACH ---- SPECIAL REVENUE FUNDS EXHIBIT L GENERAL REVENUE SHARING FUND t .STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES RUOGET AND ACTUAL YEAR ENDED JUNE 30, 1977 � Budget Actual Original Revised _ Budget Change _ Budget Expenditures Encumbrances Total $ Revenue: interest income lg,t;flg General Revenue Sharing 565,000 134,000 699,000 1 ,395,Od6 Anti-Recession F'scal Assistance 113,544 Other _ _ 12 Total revenue 565,00n 134,000 699,000 _ 1 ,528,050 i Expenditures and encumbrances: Transfer to General Fund 765,000 765,000 765,000 765,000 Warner Ave. fire station 69,463 69,403 28,b42 40,t$21 69,463 Crahan St. fire station 37,585 37,585 37,585 37,585 k Librzry materials 76.763 76,763 1 ,763 1 ,763 ! G Fire engine 41 .000 91 ,000 91 ,000 91 ,000 i Shamel Ash program 218,200 21b,200 Recreation and Parks equipment 60,300 60,300 5,5bi 41 ,610 47,191 Huntington Beach Playhouse 50,000 50,000 Public Works equipment 115,000 115,000 21 ,463 60,040 Al so; Parking control equipment 22,000 22,000 18,461 18,461 Newland House landscaping 9,000 9,000 58 2,740 2,798 Validation study 55,000 55,000 Word processing equipment 25.375 25,375 884 9,220 10,104 Automated reporting system 75,000 75,000 High school chimes 3.500 3,500 3,500 3,500 Audit fees 2,000 2,000 Anti recession program: Street tree replacement 18,000 18,000 9,778 541 10,313 Right of way agent 19,151 19,151 5,726 5.726 Banning Ave. sewer manhole 4,373 4,373 t Parking meters - 42,000 42,000 (10) 42,010 42 000 Total expenditures and tr encumbrances 765,000 993,710 1 ,758,710 879,970 306,443 1 ,186.413 _.. _ 2 QTY OF HUPITIHG'TOM BEACH # SPECIAL REVENUE FUNDS EXHIBIT L . continued . GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES I ' BUDGET AND ACTUAL YEAR ENDED JUNE 30. 1977 Budget Actual 11 Grig;nal Revised Budget Change Budget Expenditures Encumbrances Total ..xcass (deficiency) of revenue t over expenditures and encum- brances 5(2G0,000! (859,710) (1,059,710) See accompanying notes to financial statements. i i I 29 1 CITY OF HILIN 3NGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT M FEDERAL MANPOWER GRANT FUND STATEMENT OF R€VENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1977 Budget Actual I Original Revised Budget Change $udget Expenditures Encumbrances Total _ Revenue: , Title I program S 444,366 466,814 911,180 531 ,3- Title 11 program 588,000 726,457 1 .3t4,457 726,5 Title VI program 1,248,234 1 ,248,234 903,953 j Title X program 107,000 107,000 101 ,186 Manpower Planner 25,000 25,000 23,000 Summer Youth program 27,GOO Sumner Youth 1976 program 63,235 Non-Disadvantaged Summer Youth program 6,780 Other 4-008 Total revenue 2,387,600 1 ,218,271 3,605,1371 - - 2,432,032 - A and encumbrances: I Expenditures I CETA Title I program 579,420 491 ,814 1 ,07z ,234 587,612 1 ,050 588,667 CETA Title 11 program 47,278 726,457 773,735 696.666 696,666 C:'TA Title VI program 42d.586 428,586 682,226 2,844 685,070 CETA Title X program 101,1E5 101 ,186 101 ,173 39 101 ,212 Non-d i sa lvan taped Sur-r-a r Youth program 7,672 7,672 Recreation support 4,000 4,000 3.205 1 ,572 4.777 total expenditures and encumbrances 1 ,160,470 1 ,218,271 2,378,741 2,078,554 5.505 2,084,059 Excess of revenue over expendi- tures and encumbrances $1,227,130 - 1 ,227030 - - 347,973 See accompanying notes to financial statements. 30 E i . CM OF 11UNnNGTON BEACH - SPECIAL REVENUE FUNDS 1_XHl81T N OTHER GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL � YEAR ENDED JUNE 30, 1977 i Budget Actual Original Revised Budget Change Uudget Expenditures Encumbrances Totai Revenue: EDA Grant - Gothard Street $ 175,000 175,000 1^40,000 NLtional Science Foundation ;,ircuit Rid_r 30,000 30,000 2U,616 j i District Guisance Center 244 HUD 701 Grant 16,938 Juv. Diversion and Counseling 326,150 326,150 1 ,030 E Juvenile Diversion Treatment 104,104 ` County Revenue Sharing 63,416 63,416 62,393 HUD ;clock Grant 690,000 690,000 540.325 EDA Grant - fire station 567,000 567,000 1C2,926 Burglary Prevention 85,624 85,b24 10,427 Step Program 57,A?0 57,820 40,907 Other 47,000 Total revenue 1 ,294,566 710.4 4 1 ,995,010 - - 1�0 {.,g16 Expenditures and encumbrances: EDA Grant-Gothard Street 175,000 175,000 175,000 175,OUO EDA Grant-Warner Ave Fire Sta. 567,000 567,000 103,292 55:,760 659,052 National Science Foundation Circuit hider 1d,2t$7 18,2t37 22,364 56 22,420 HUD 701 Grant 2,744 2,744 lb,938 16,938 Juv. Diversion and Counseling 145 145 11009 11009 ( Juvenile Diversion Treatment 326,150 326:150 96,443 96,443 HUD Block Grant 1 .072,626 1 ,072,626 540,352 25,259 565,611 Bike trails 377,000 377,000 1 ,392 2,911 4.303 Police grants 143,444 143,444 51 ,191 75,160 126,351 Seniors Outreach program 41 ,079 41 ,079 15,078 437 15,515 Seniors Outreach program-1977 63,416 63,416 51 ,469 2,146 53,615 Other 29,277 29,277 Total expenditures and - encumbrances S 626,676 2,160,215 2,786,891 1 ,103,805 661 ,729 1 ,765,534 i Cr ff OF HUN`nNGTON REACH SPECIAL REVENUE FUNUS EXHIBIT N, continued OTHER GRANTS FUND • STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED .TUNE 30, 1977 Budget Actual Oridinal Revised Budget Change Budget Expenditures Encumbrances Total E Excess (deficiency) of revenue over expenditures and encum- brances S 657,890 0 ,449,771) (791 ,881) - _ (698,624) I li See accompanying notes to financial statements. 32 �, 1 --� CITY OF HUNTINGTON BENCH SPECIAL REVENUE FUNDS EXHIBIT u PARK ACQUISITION AND DEVELOPMENT FUND STATEMENT CF 7.EVENUE, EXPENDITURES AND ENCUMBRANCES • BUD!:'-TT AND ACTUAL YEAR ENDED .TUNE 30, 1977 Budget Actual ' Original Revised Budget _ Change Budget Expenditures Encumbrances Total Revenue: Interest income S 130,b1': Federal grant 115,000 115,000 State of California grant 1,U,044 190,044 Subdivisior license fee 482,592 482,592 685.237 Unit lot tet: 646,m 646,812 607,140 Other 53 �. T.ital revenue 1 .414.44s - i -4i4.448 - Expenditures and encumbrances: Park improvements Golden West 188,000 (182,232) 5,765 5,768 5,768 � Old Town 75,000 84,300 159,300 159,902 159,902 { } Yorktown 24,354 24,354 24,354 24,354 I 1 Sunset Heights 43U,267 438,267 318,038 31d,038 Go1derrwest Fields S44 844 I;44 844 Central 235,000 (199,666) 35,334 13,007 22,325 35,332 Oakview 25,000 (18.979) 6,021 4,484 1 ,475 5,959 Chris Carr 8,500 4,969 13,469 13,469 13,469 Aarina 243.075 (230,158) 12,917 12,842 12,Q42 1 Pleasant View 1,280 1,280 1 ,280 1 ,280 Hawes 1 ,280 1 ,280 1 ,280 1 ,280 Ta, lor 131,666 131 ,666 131 ,666 13i ,666 Sims Grove 35,000 (35,000) 4 Robinwood 1 ,280 1 ,280 1 ,280 1 ,280 Glenview 850 701 1 ,551 i .551 1 ,551 - New I and 30,000 (26,823) 3,177 3, '71 3, 177 Lutheran 20,000 20,000 2C,O00 20,000 Other 414,610 (4)4,610) Recreation Centers 6,600 6,60 0 1 ,483 5,117 6,600 33 CITY OF HUNTING"ION MACH SPECIAL. REVENUE FUNDS EXHIBIT 0 , continued PARK ACQUISITION AND DEVELOPMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES • BUDGET AND ACTUAL I YEAR EMDED JUNE 302 1977 Budget actual Original Revised Expenditures and encumbrances, Budget Change Budget Expenditures Encumbrance. Total Continued Bike trails 2.143 2,1 43 285 1 .887 2,172 �, Other2,700 700 , Appraisals 195,188 3K7,n84 582 272 _ 3,497 _ 3,497 ; Total expenditures and encuirl-rances 1 ,450,223 - 1,450,223 718,207 30,804 749,011 'I Excess (deficiency) of revenue over expenditures and encum- brances S (15,775) - (15,7i5) _ _ 624,031 See accompanying notes to financial statements. E 1 34 E i . OTY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT P SELF INSURANCE FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1977 Budget Actual Original Revised Budget _ Change Budget Expenditures Encumbrances Total Revenue: Interest income S 12,102 Compens.:ion premiums: General Funs! 789,E52 Grant Fund 36,425 t Water Utility Fund 18,000 Redevelopment Agency 264 Other _ 271 Total revenue - - - - - _ 856,gi4 i Expenditures and encumbrances: Operating expenses 145,500 (145,500) Personal service costs 19,856 19,656 20,474 20,474 Travel costs 750 750 380 380 I Contractual services: . Insurance administrator 15,000 15,000 17,026 17,026 Legal 5,520 5,520 5,507 5,507 Medical 100,000 100,000 90,692 90,692 Insurance - excess coverage 48,050 48,050 46,950 46,950 Disability payments: Permanent employees 75,000 75,OC.; 48,573 48.573 Temporary employees 10,G00 10,000 2.,847 2,847 Permanent disability 5,000 5,000 2,060 2,06E Establish reserve for claims - - 124,007 124,007 l Other 1 .C94 1 ,094 438 89 527 Total expenditures and encumbrances 145,500 134,770 280,270 358,954 89 359.043 Excess (deficiency) of revenue over expenditures and encum- brances S (145,500) (134.770) (280,270) - 497,871 See accompanying notes to financia 35 i _ C1TY OF HUNTING T4N REACH --- SPECIAL REVENUE FUNDS EXHIBIT Q TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDriET AND ACTUAL. YEAR EWDED JUNE 30, 1977 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue I Traffic fines S 400,000 400.000 _, 378,517 ti Total revenue 400,000 - 400,000 - _ _ 378,517 Expenditures and encumbrances Transfer to General Fund 400,000 - 400,000 378,517 373,517 Excess of revenue over expenditures and encumbrances j See accompanying notes to financial statements. r i I I I 36 ` l r CITE'4F HUMNGTON BEACH SPECIAL. REVENUE FUNDS -EXHIBIT R PARKING METER FUND tTATEKENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES f BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1977 } � . J Budget __ Actual Original Revised -Budget Change audget Expenditures Encumbrances Total Revenue Parking meters: Commercia'. $ 15,870 15,870 17,1S3 k Residential 8,000 8,000 9,791 Pacific Coast Highway 81030 81, 130 99,653 Total revenue 105,000 - 105,000 - - 126,607 f ' f Expenditures and encumbrances Traw;fer to General Fund 105,000 - 105,000 126,607 - 126.607 Excess of revenue over expendi- tures and encumbrances I � See accompanying notes to Financial statements. i t� I 1 ' 37 � . l I CITY OF i1JNIhGTON BEACH DEBT SERVICE FUNDS EXHIBIT S COMBINED BALANCE SHEET JUKE 30, 19/7 1955 hater Bond 1970 Park Bond Interest and lnterebt and Total Redemption Fund Redemption Fund Assets Cash and term deposits $ 52,10 52,101 Due fk•oin other governmental units, net of allowance for delinquent property taxes 4,821 354 4,467 Total assets $ 56,922 52,45= 4,467 Liabilities and Fund Balance (Deficit) Liabilities - cash overdraft $ 17,462 17.462 Fund balance_ (deficit) 39,460 52,455 (12,995) Total liabilities and fund balance (deftsi0 $ 36.322 52,455 4,467 i See accompanying notes to financial statements. t 1 38 CITY OF IIUM ING T©N BEACH{ DEBT SERVICE FUNDS EXHIBIT T COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE YEAR ENDED JUNE 30, 1977 f 1955 Water Bond 1970 Park Bond 4 . Interest and Interest and Total Redemption Fund Redemption Fiord Fund balance (deficit) at July 1 , 1976 S 8,b45 55,909 _ (47,264) Revenue: Property taxes 534,181 34,039 503,142 Interest inccme 936 936 Total revenue 535,117 34,975 _500 J 42 Expenditures: Redemption of matured bonds 190,000 35,000 155,000 Interest on bends 313,775 3,325 310,450 Other _ 527 104 423 Total expenditures 504,302 3B,429 �+65,873 Excess (deficiency) fund balance and revenue 39,460 52,455 (12,995) ever expenditures Fund balance (deficit) at June 30, 1977 $ 39,460 52,455 (12,995) , i See accompanying notes to financial statements. I i i I 1 M � - 39 1 - CITY OF HUNTINGT0N BEACH CAP'TAL PROJECTS FUNDS EXHIBIT U -! COMS' INED BALANCE SHEET i • JUNE 30, 1977 Special 1955 Water Capital Bond Total outlay Construction Assets Cash $ 91 ,864 14,554 77,310 Unappropriated Fund Balance 4- 91,1164 14,_; _ 771310 i 1 3 See accompanying notes to financial statements. ii 40 1 CITY 4r HUNIINGTON LEACH CAPITAL PRC.i£CTS FUNDS EXHIBIT V t COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUNU BALANCE YEAR ENDED JUNE 30, 1977 Special 1955 Water Capital Bond Total Outlay Construction Fwzd balance at .July 1 , 1976 $ 91 ,864 14,554 77,310 Revenue _ Expend;tures Fund balance at June 30, 1977 S 91 ,864 14,554 77.310 } See accompanying notes to financial statements. I I t I 1 to i CCri Y OF BUrMNG'»UN BEACH ENTLRPRISE FUNDS EXHIBIT W COMBINED BALANCE SHEET • .TUNE 30, 1977 Water Utility Meadowlark Golf Total fund Course Fund I Assets Cash and term deposits. $ 1 ,935,448 1 ,871 ,488 63,960 Accounts receivable, net: Trade 176,324 176,324 Other 27,697 27,691 t Investments , at cost which approximate market (Note 51 196,305 196,305 Deposits 32,2b9 32,269 Due from other entities �468 9,468 ! Total current assets 2,377511 2,313 551 F, Property, plant and cquipment, net of allowance 3,960 for depreciation 20,716,322 17,554,002 3,162,320 Assets restricted as to use - cash with fiscal agent. 308,878 308,878 Total assets $ 23,4022711 20,176,431 3,226,28C i See accompanying notes to financial statements. 42 i I CITY OF 11UN771I.GTON BEACH ENTERPRISE FUNDS t j! COMBINED BALANCE SHEET 1`^MI@1T W. cantiHued i r 4UNE 30, 1977 i Water Utility Meadowlark Golf j Total Fur� bourse Fund liabilities, Reserves. Contrc:)utions and Retained Earnings Deficit) ' Current liabilities payable from current assets): Accounts pal-able S 166,867 166,867 Contracts payable 900 900 Customer deposits 77,436 77,43b Accrued interest payable 47,028 L17,028 Accrued expenses 34,308 34,308 Current installment of long term note payable 13,768 13.768 c (Note 7 ) Current Installment of bonds payable (Note v ) 120,000 120,000 Current liat, Iitirs (payabie From restricted asszt0: t Matured interest payable 5,822 5,822 Accrued interest. payable 16,590 16.590 Total current liabilities 482,721 421 .925 60,736 Long termnote payable, net of current installment (Mote 7 ) 1 ,932.405 1 ,932,405 Bc nds payable in future years net of current install- ment (Nate 6) 2,710,000 _ 2.710,000 Total liabilities 5.1255,126 3. 131 22_5 �1 ,993.201 Reserve for revenue bond retirement 540,127 540,127 Contributions: In aid of construr_tior+ 10,268,252 10,268,252 From General Fund 1 .354`932 _ ?.6J$ 1 .2b7.'s24 Total contributio 11 .628.184 i0.�60.8b0 1 .?.67.324 Retained earnings (-`e At) 6,109,274 6.143,519 (34,245) } Total liabilities, reserves, contributions and retained earning. $ 23,402,711 20,176.431 i 3,226,280 i i See accompanying notes to financial statements. 1 � I 17 43 CITY OF HUN77NGTON BEACH WATER UTILITY FUND EXHIBIT X STATEMENT OF REVENUE AN'D EXPENSES YEAR ENDED JUNE 30, 1977 0 Operating Revenue: Metered :grater sales $ 3,743,574 Municipal water sales 98,030 Fire hydrant rentals b6,571 Acreage tees 74,841 ] Tract fees 7b,964 New services 166,156 Other water services 261359 i Total operating revenue -- 4,252,495 Operating Expenses: Source of SL'pnly S 497,3�7 Pumping expense 679,639 Water treatment 27,528 T,ansmission and distribution 292,871 Pdministrative and general 531 ,608 Contributions to general fund in lieu of taxes 567436 2.596.000 Depreciation 538.067 Total operating expenses 3, 134.076 t Operating income 1 ,118,419 Nonoperating Income: Interest income 73,235 Other 7,523 Tr,-al nonoperating income 8p 8 Teral operating and nonoperating income l b-91 77 Ilonopernting Expense Bond interest 102,812 Fiscal agent fees lam Total nonoperating expense Net incim- SP �_P arcmmanvina notes to fina"fal sta!emenLs. 44 S Z J ILM OF HUN77NGT.ON BEACH WATER UTILITY FUND EXHIBIT Y � . STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1977 I . Retained earnings at July 1 , 19706 S 5,396.173 I : Add. j Net income { . 1 ,095,024 Total balance and add'tions Less: Increase in reserve for revenue Mond retirement Transfers to General Fund - 1955 Water Bonds 308.878 39,400 i Retained earnings at June 30, 1977 S b,l i t See accompanying notes to financial statements. I 1 i II l ( 45 • CITY QF I,UNT�N CTQN SEq,� Sr�;TLrhEt1T pFWATFR UTILITY CHi�NGES t,y Fl1(�p Sources YEAR ENDED Fl1+ANCtAL POSITION es o f Vo rk i n �t1tNl; 30, 1977 EXHIBIT 2 Current oPerationsaP�tal: t earnings Charges against # DePreciatlon earn;nSs not involving Wv>-Icin ! �*orkin 9 cap;r�t. g caPitaI Pruvided Decrease From operations S 1095,024 se in assets lncrea5e 'n accumulated restricted as to use 53$•067 •n cantr;buttons epreciat!on on as5esh with fiscal 1 6 To n 4id of is con agent 33.Og1 t contributed in prior j/ Dis Total working capital provided eonstructtan Years r1,8�3 Position of Worki Additions to f• n; Capital: 601'7SI Additions r 'xed assets 1 894>$53 increase 'c fi`ad ;n assets Cr t�•14 T tans fe r to reserve for �_. 753$ Decrease General reversetbond rat atio ea.,e ;n tan Fund for red recIrementaF assets contrib 9 term e,Pc'on a uted in bands Payable f T955 {►afar Bonds Prior ;ear$ 2 358,01 To to 1 ti�c;-king capita, ,4-96,6o5 used i7.30 Increase in Work'*' 39,4o0 Chances in Com capital 120.000 Increase (decronents of Working 3 0 s Cash and decrease) in current C�P1taI mere as 3t.321 r Accounts deposits assets: follows: S 1 1Ib Accounts t Pce i uab 1 e --L'�-217.._ Due om reeeivable, POthere (net) f" other entities (net) Due tram other entities Total 1,261,655 f24, 122j , 19,479 20,278 � 468 S 1.286-758 46 is - CCU'4F HUNnNGTON BEACH WATER UTILITY FUND EXHIBIT 2, continued STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1977 Changes in Components of Working Capital , Continued ; . Decrease in current liabiiitics: Accounts payable 77,726 I Customer deposits S 77.037 s Accrued payro ll 5 778 j Current :nstailment of bonds payable _ 10,01410 Total 170,541 Increase in working capital S l , fi6,217 1 See accompanying notes ;o financial statements. i i i i I 1 � - a� i CITY OF NUMINGTON BEACH MEADOWLARK GOLF �^URSE FUND EXHIBIT AA STATEMENT OF REVEN;IE AND EXPENSES YEAR ENDED JUKE 30, 1977 Revenue: Lease revenue Interest income $ 150,000 II 1.348 � i Total revenue _ 15t,548 Expenditures: Interest 136,951 Depreciation 15.760 total expenditures 152,711 Net i055 S 1 ,163 See accompanying notes to Financial statements. 1 l 48 i CITY OF HUN77NGTON BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT DR STATEMENT OF CHANGES IN ACCUMULATED DEFICIT I YEAR ENUED J UNE 30, 1977 Accumulated deficit at July 1 , 1976 $ 33,082 Add: t l Net loss 1 .163 ! Accumulated deficit at June 30, 1977 S 34,245 } See accompanying notes to financial statements. I I r --- - 49 E . CITY OF HUNIZINGTON BEACH MEADWLARK i;OLF COURSE FUND EXHIBIT CC STATEMENT OF CHANGES IN FINANCIAL. POSITION YEAR ENDED JUNE 30, 1977 Sources of Working Capital : Net loss $ 1 ,163 Charges against net loss not involving working capital : Depreciation 15,760 Working capital provided from operations 14,597 Disposition of Working Capital: Payment of principal position of notes payable 13,768 Increase in working capital $ 629 { i Changes in the components of working capital were as follows: Increase in current assets- cash S 1 ,548 O ncuease) Decrease in-current liabilities: Increase in current portion of notes payable (901) Decrease in accrued interest payable 182 . { I Total increase in current liabilities (719) Incraase in working capital S 829 1 See accompanying notes to financial statements. 50 CITY OF HU.-NUNGTON BEACH TRUST AND AGENCY FUNDS E`4HIBET DD COMBINED BALANCE SHEET .. jUNE 30, 1977 • Employee Redevelopment Trust Deferred Agency Special Total Fund compensation Fund Assessments , 1 _ Assets Cash and germ deposits $ 765.083 162,368 363.784 202,054 36,877 Accounts receivable 6.300 6,300 Notes receivable 202,797 202,797 Net project. costs 142,651 142.651 Total assets $ 1 , 116,831 162.368 572,881 344,705 36,877 Liabilities and Fund Balance i Liabilities: Due to other funds $ 260,000 260,000 Refundable deposits 162,368 162,368 Special assessment bond principal and interest payable 36,877 36.877 Accounts mlayable and accrued payroll 1 ,326 1 ,326 Total liabilities 460,571 162,368 261 ,326 36,877 Fund balance 656,260 - 572.881 83,379 Total liabilities and fund balance S 1 ,116,831 16',363 572,88; 344.705 36.877 See accompanying notes to financial statements. k t { l CITY OF 11UNUNGI)ON BEACH TRUST AND AGENCY FUNDS EXHIBIT EE COMBINED STATEMENT OF CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1977 Employee Redevelopment Trust Deferred Agency Special Total Fund Compensation Funds Assessments Fund balance at .July 1 , 1976 $ 405,422 389,289 16,133 Add: Interest earned 46,136 42,0912 41044 Contributions received 223,bZl 144,486 79,335 p Capitalised project costs 136,610 _ 136,610 { r 1 Total additions and fund balance 811,989 - s75,867 219.989 16.133 Less: Contributions to General Fund 13,591 13,591 Paid to participants in employee deferred compensation plan 2,986 2,986 Expenditures 139,152 136,610 2.542 Total deductions 155,729 - 2,986 136,610 16,133 Fund balance at ,June 30, -1977 $ 656,260 - 572,881 83,379 - See accompanying notes to financial staterr,�nts. I i i 52 OTY 4F HUPMNGTON BEACH --- NOTES TO FINANCIAL STATEMENTS JUNE 30, 1977 1 Note i Summary of Significant Accounting Policies r ? Description of Funds and Account Groups The basic accounting and reporting entry In government is a "fund." A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources i together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. Because a clear distinction should be made between the accounts relating to current assets and liabilities and those related to fixed assets and long term liabilities, a self balancing "group of accounts" is utilized. The types of funds and account groups used and their respective definitions are as follows: Funds a) The General Fund-to account the City's ordinary operations which are financed from taxes and € other general revenues and to account for all financial transactions not properly accounted ! for in another type of fund. b) Special Revenue Funds-to account for the proceeds from specific revenue sources {other than special assessments) or to finance specified activities as required by law or administrative reytilation. c) Debt Service Funds-to account for the payment of interest and principal of general obligation long- term debt. d) Capital Project Funds-to account for the receipt and disbursement of monies used for the acquisi- tion of capital facilities other than those financed by special assessment and enterprise funds. �. e) Enterprise Funds-to account for the financing of services to the general public where all or most of the casts involved are financed through charges by users of such services. f) Trust and Agency Funds-to account for resources held by a governmental unit as trustee Cr agent fo: Individuals, private organizations, and other governmental units. t E Account Groups a) General Fixed Assets Group of Accounts-to account for the general fixed assets of the City other than those accounted for in the enterprise or trust funds. b) General Long Term Debt Group of Accounts-to account for the genr_ral obligation long term dnbt of the City. 53 1 CITY OF HUNnNGTON BEACH NOTES TO FINANCIAL STATERNTS, Continued Note: 1 , Sursiary of Significant Accounting Policies, Continued I Basis of Accounting The accrual basis of accounting is followed for enterprise and trust and agency funds. The accrual basis of accounting is defined as that basis of accounting under which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, not withstanding that the receipt of the revenue or the payment of the expenditures may take place, in whole or in, part, in another accounting period. The nodified accrual basis of accounting is followed for the general, special revenue, capital project, and debt service funds. The modified accrual basis of accounting is eefined as that basis of accounting under which expenditures other than accrued interest on general long-term debt are recorded at the time liabilities are incurred :.4nd revenues are recorded .when received in cash, except for material and/or avall- able revenues which should Lim accrued to reflect properly the taxes levied and the revenues earned. Investments } Investments are stated at cost, adjusted for amortization of premium or discount. Investments generally co-+sist of Federal Government-backed securities, bankers acceptances and municipal securities (note 5). Fixed Assets The general fixed assets of the City, those fixed assets which are not accounted for in the enterprise funds, are accounted for in a separate self-balancing group of accounts described as the "General Fixed Assets Group of Accounts." General fixed assets are not depreciated. General fixed assets acquired by the City prior to .July 1 , 1973 and during 1977 are not recorded in the City's accounting records. General fixed assets, except municipal improvements other than buildings acquired from July 1 , 1973 through June 30, 1976 are recorded at cost in the City's accounting records. The accounts of the water utility fund include $21 ,634,870 of property and equipment, less $4,080,668 accu• i iulated depreciation. Of these assets, approximately S8,3713,000 represents Crater service assets which have been donated to the City by independent contractors prior to Jane 30, 1968. Such donated assets have been recorded at values estimated by City personnel . During 1977, the City conducted an inventory of fixed i assets of the Water utility fund. This inventory resulted in the recording of approximatel; $1 ,894,000 in .� water servvice assets that were previously unrecorded. The City's evaluation of its :•rater utility fixed assets is still continuing. Depreciation of the fixed assets of the Water !Utility Fund is charged to operations using the straight-line method on the estimated useful life or an asset within a particular group of assets as follows: Asset Group Life Production and pumping plant 15- 0 years TraAsmission and distribution plant 25-75 years General plant 10-30 years ' Transportation equipment 6-10 years 54 C TY OF HUNIINGTDN D ACH NOTES TO FINANCIAL STATEMENTS, Continued • Nate 1 , Summary of Significant Accounting Policies. Continued General Long Term Debt General long term debt, except for enterprise funds, is not carried with the current liabilities of a fund, but rather is recorded in a separate solf-balancing group of accounts described as the "General } Long Term Debt Group of Accounts." (Notes 2, 3 and 6). , Budgetary Control Budgetary control is an essential element in governmental accounting and reporting. The City a;,:,pts ' an annual budget and utilizes an "encumbrance system." Under this procedure, obligations or cUmmit- meets in the form of purchase orders or contracts which are chargeable to an appropriation are recorded E� + as restrictions of fund balance through a reserve account. Vacation and Sick Leave It is the policy of the City to record the cost of vacation and sick leave when paid. A.t .iune 30, 1977, the total unrecorded liability for vacation and sick leave accumulated by City employees was approximately S 1 ,640,669. E pension Plan City employees participate in the Public Employees Retirement System administered by the State of Califor- nia. This retirement plan covers substantial'y all City employees. The total pension expense recognized by the City for the fiscal year ended June 30, 1977 was approximately S1,534,257. The excess, if s any, of the actuarially computed value of vested benefits over the total of the above pension fund is not determinable. { Deferred Emplaxee Compensation f The City has initiated a deferred compensation plan whereby eligible City employees may elect to defer a portion of their earnings for Federal income tax purposes. The deferred compensation plan has been ( approved by the Internal Revenue Service (Service). The Service stipulate-1 to its approval that legal l title to the deferred compensation funds, together with any interest thereon, Rust rest with the City. For purposes of financial statement presentation, these deferred compensation funds have been treated as a separate trust fund of the City. 55 F 1 >B (XTY OF HUNIINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note ! , Su^mary of Significaiit Accounting Policies, Continued Descri2tion of Leasing Arrangements The City has entered into long term sublease agreements with the Huntington Beach Public �aciiities Cor- poration for the rental of the Civic Center complex and the Central Library. Both sublease agreements pro- vide that the ownership of the facilities, constructed on land owned by the City, will be transferred to the City, at no additional cost, upon completion of the term of the subleases. Proper accountinc under such circumstances requires that such leases be accounted for under the financing method. Under the financing method, the transaction is regarded as an installment purchase, whereby an asset and an associated long term liability are established. Annual rental payments are treated as reductions of a long term liability. ;lute 2 Equipment Sale - Leaseback Agreements The City has entered into two sale-leaseback agreements with outside parties for the lease of computer peripheral equipment. These agreements are for less than five years duration and represent financial arrangements that, in essence, are considered installment purchases. At June 30, 1977, the City owed the lessors approximately $205,000. Annual payments under the agreements aggregate approximately SI44,048, including interest. The agreements represent future general obligations i of the City and have been recorded as liabilities in the "General Long Term Debt Group of Accounts." Note Leases The City has entered into two noncancellable lease and sublease agreements with the Huntington Beach Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the Central Library. Under both agreements, the City is to pay all taxes, insurance, administrative and maintenance i crests. Title to the site improvements will pass to the City at the termination of the leases. The City has determined that such leases are financing leases. Under the financing method a transaction is regarded as an installment purchase, whereby an asset and related liability are recorded. Annual rental r payments are treated a,; reductions of the liability. Advance rentals from the Corporation received by the City i:,: lease of the site upon which the facilities are constructed are recorded as deferred rental income In the Civic Improvement Fund and are being amortized over the terms of the sublease. i A description of each lease agreement is as follows: i a) Civic Center l The City has entered into a noncancellable lease and sublease agreement with the Corporation for the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation j for $350,000 advance rental. The term of the lease is from January 15, 1976 to one week after 56 E CITY OF HUNIIINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued •; _ Note j, Leases, Continued tha termination of the sublease. The Corporation has subleased the civic center site and Improvements to th; City for $854,900 `nnual = base rental . The sublease commenced July 1, 1974 for a term of >0 years or until all debts of the Corporation related to the civic center have been discharged, whichever cores first. b) Central Library the City has entered Into a noncanceilable lease and sublease agreement with the Corporation for the Central Library. The City has leased the site to the Corporation for $300,000 advance rental. The term of the lease is from September 1, 1972 to one week after termination of the sublease. The Corporation has subleased the library site and Improvements to the City for $399.000 annual g base rental. The sublease commenced February 15, 1975 for a term of 30 years or until ail _# debts of the Corporation related to the library have been discharged, whichever comes first. Mote Commitments The City hat entered into the following agreements: a) 1n 1967, the City entered into an agreement for the lease of water storage capacity in the San Joaquin Reservoir for a term, of 50 years at an anneal rental of $100,000 for the fl -st ten years, $95,000 per year for the next ten years, $90,000 per year for the next seven years, and $10,000 Yar year through the remaining term of the lease. b) in 1969, the: City entered into an agreement with the ltuntl .gton 4each Parking Authority for Lne lease of certain parking facilities. The term of the lease is 24 years or until all of the Parking Authors ty's 196d revenue bonds have been retired. Annual base rental payments under the lease agreement are $170,050. f c) In .tune, 1974, the City leased a park site from the Ocean View School District for s term of five years. The City may cancel the agreement at the end of any be dgetary year. 1f the City makes all lease payments, title to the property will pass to the City. Annual rentals under the eg aement aggregate $64,875. Due to its Insignificance, the City has elected not to capitalize this finnn- cing lease. ;i Minimum aggregate rental commttments under the above agreements are as Gallows: r i 57 ._.._. ... 7 ■ �1s J QTY OF HUMNGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued note 4, Commitments, Continued i Year Amount 1978 S 329,875 i979 265,050 1980 265,050 1391 265,o5o 1982-1986 1,325,250 1987-` 3i 1,300,250 1992 1996 550,100 Remainder $ 200,000 The City has entered into agreements with contractors which generally provide for possible reimburse- ment to the contractors, of costs incurred in constructing Water, sewer, and drainage facilities. The extent of such reimbursement shall generally be limited to subsequent fees which are collected from other users of the facilities which are not used to provide improvement to the facilities. The City follows the practice of recognizing fees as revenue as they are collected and charges subsequent payments to expenditures as they are made. Note Investments in Marketable Securities A summary of the City's marketable securities at June 30, 1977 is as follows: Approx. Interest Principal Amortized Market Description Rate Maturity Amount Cost Value General Fund Huntington Beach Public Facilities Corporation Leasehold Mortgage ( ! Bonds, First and Second Issues 5.55% 1985-098 5 55.000 48,636 48,636 -j City of Huntington Beach 1970 Park Bonds 6.0 1960 25,000 24,509 24,509 Huntington Beach Parking Authority 1968 Parking Revenue Bonds 5-5.25 1984-1998 100,000 85,302 85,302 Total 180,000 158,447 158,447 Water Utility Fund City of 4untington Beach 1963 Wc.tcr Revenue Bond 3.4-3.5% 1983 330,000 196,305 196,305 Total investments 58 S 510,000 3:4.752 354.752 - — CITY OF HUNIMNGIVN BEACH NOTES TO FINANCIAL STATEMENTS, Continued s 1 hate 6 Outstanding Indebtedness summary of bonded Indebtedness :ststanding as of June 30, 1977 1s as follows: Zonds Bonds Ilatured Bonds Date of Years of Rate of Amount of Outstanding During Outstanding Issue Bonds Maturity Interest Orig. Issue .July 1 . 1976 Year .tune 30, 1977 General Obligation Bonded Debt Group 1955 Water Bond 1955 1956-1962 5.50% S 230,000 1963-1976 3.00 490,0no 35,000 35,000 -0- fff 1577-198D 2.00 140,000 _ 1401000 -0 140,000 i Total 1955 Water Bond 860,000 175,000 35,000 140,000 1970 Park Bond 1970 1971-1972 5.00 225,000 -0- 1973-1974 5.25 255,000 -0- 1975-1977 5,50 440,000 155,000 155,000 -0- f ' 197E-1983 5.7r, 1 ,150,000 1,150,000 -0- 1 ,15G,000 1984-1995 6.00 3.230,000 31930,000 -0- 3,930,000 Total 1970 Park Bond 6,000.000 23r,,000 155, ,000 - 510801000 r Total general obligation boned debt s 6.860,000 5,410,Ob0 190,000 5,220,000 t I 3 I 3 's i 59 1 CITY OF HUNTlNGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 6, Outstandina indebtedness, Continued Bonds Bonds Matured Bonds Dite of Years of Rate of Amount of Outstanding During Outstanding Issue Rands Maturity Interest Orig. Issue July 1 , 1976 Year June 30, 1977 Revenue 0nnds �.ater Utility Fund - 1°''� Dater Revenue @ond 1963 1963-1974 4.75% S 700,000 -0 1975-1978 3.25 460.000 350,000 110,000 240,000 1979-1931 3.30 400,000 400,000 -0- 40n,000 1982-1983 3.110 300,000 300,000 ••O- 300,000 1984-1993 3.50 1 ,890.000 1,890.000 ;a- 1 ,890,000 "'_ 1 Total Revenue Bonds (a) (b) 3.750,O0a 2,940_,00O 110,000 2.830,000 1 i Total bonds payabic S 10,610,000 r8,350,000 300.000 8,050,000 Is ' (a) The water revenue bond. do not represent a general liability of this City of Huntington Beach. (b) At June 30, 1977, there were $1 ,950,000 authorized but unused 1963 water revenue bonds. (c) Special assessment district bonds outstanding at June 30, 1977 totalled approximately $111 ,300. :h bonds do not constitute an obligation of the City of Huntington Beach. Mote 7 Meadowlark Golt Course Note Pa able i In 1975, the City entered into an agreement to purchase the Headowlark Golf Course from an independent .] party for a total purchase price of $3,200,000. Terms of the agreement called for an initial down payment i of $ 928,000 with the remaining S2,272,000 being in the form, of long-term 7% note. At June 30, 1977 the balance of the note was $1 ,946,173. A schedule of yearly principal and interest pay- ments is as follows: Year Amount 1978-2001 $ 150,000 2002-2008 200,000 4 2009 s 115,703 ,�.� 60 CITY OF HUN't'i>GTON BEACH MOTES TO FINANCIAL STATEMENTS, Continued 1 Note 7, Meadowlark Golf Course Note Payable, Continued In connection with the above purchase, the City has leased the golf course operation to an outside party i for 34 years at a minimum leave Income of $150,000 annually through 2007 and a percentage of income based upon gross revenues for the years 2008 and 2009. As part of the initial payw.nt of $928,000, the County of Orance contributed $600,00 upon the City's guarantee to use general City funds when ana If necessary to ensure that Meadowlark Golf Course wiO be maintained as open space. The note payable is coilateralized by future revenues and does not represent a general obligation of the City. I Litination I At June 30, 1977, the City was defendant in severcl legal actions arising in the normal course of busi- ness. The City Is insured for public liability and property damage through va: 'ous insurance policies aggregating up to $10,000.000 coverage for each occurrence. In the opinion of the City Attorney, the : actual impact to the City upon resolution of the outstanding claims is insignificant. I ss � E i i 3 i � l OTY OF HUMNGTON BEACH STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES SCHEDULE 1 � II July 1 , 1967 through June 30, 1977 i Fines Use of From Charges for Fiscal Other Licenses S S For- Honey S Other Current Other Year Taxes Permits feltures Property Agencies Services Revenue 1967 $ 988,130 557,267 60,635 251,379 787.372 265,546 42,910 1968 1 ,468,851 677.740 75094 249,186 849,395 492,440 31 ,519 1M 1 ,938,841 742.853 65,007 295,504 1 ,053,917 816,856 40,607 1970 2,256,982 809.773 79,169 541 ,283 1 ,101 ,752 774.850 159,339 1971 2,569,358 772,347 90, 197 510,099 1.332,432 348,834 51 ,i29 1972 3.115,977 1 ,269,922 109,851 596,857 1 ,373,140 489,013 59:200 1973 3800,728 1,997,185 126,651 651 ,746 1,589,742 701 .760 112, 172 1974 4:386,433 1 ,534,:30 152,769 682,395 1 ,830,265 615,379 32,325 15?5 5,723.995 2,236,292 125,698 767,233 1 ,774.i92 639,064 41 ,427 197i 5,722.103 2,588,932 135,216 907,470 2,040,207 82S.912 49,277 1977 S 6,785,656 2,817,209 214,808 1 .050.938 2.567,992 942,760 48.714 jI f ' I i 62 CITY OF H11rMNCTON BEACH STATEKENT OF EXPENDITURES AND ENCUMBRARCES FOR GENERAL FUND SCHEDULE 11 July 1 , 1967 through June 30, 1977 ' Fiscal Administrative Services Community Services Public Safety Services s Year Expenditures Encumbrances Ex�en Lures Encvmbrances Expend tures Encu fences 1967 S 1 ,125,620 5,463 2,054,22) 67,720 2,480,294 17,741 1968 1,112,929 2,585 2,263,295 84,930 3.035,672 18,155 1969 1 ,730,483 1,767 2,522,111 89,304 3,820,166 65,171 1970 2,346,300 156,241 3,806,162 206,532 4,728,247 198,844 1971 2,328,085 630 4.016,357 228,289 5,410,562 41 ,583 072 1,676,714 12,781 4,736,550 105,091 6,966,277 84,117 1973 1 .330,792 16,811 5,978,271 1 ,244,452 8,489,612 153,610 1974 1,494,073 6,601. 6,6ol,075 36,110 9,541,847 21 ,679 i 1975 2,802,27009 14,501 6,9757,233 190,353e 10.8588.325 117,564 1 1976 S 2,194,09 6 ,�78 153.201 7.7 7.535_ 250 5LB 8 1 ,071, 26 317,13 1977 i 1 j 63 I -- -- CITY OF HUN71NGTON BEACH STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND, CONTINUED SCHEDULE 11 . 'ulY 1 , 1967 through '_ne 30, 1977 continued Y support sarmle"s 7eta1 Ganerai Fund Expenditures encumbrances Expenditures Encumbrances $ 221,554 415 5,881 .6R9 91 ,339 293,751 1,198 6,705,64? 106,868 355,440 7,139 8,428,200 163,381 444,o95 3,879 11,324,803 565,496 544,078 4,456 12,299,082 274,957 724,723 8,283 14,104,264 210,272 720,979 1..3,158 16.519.654 1,428,031 I 1 906,900 5,966 18,543,895 70.356 813,411 5,367 21 ,451 ,239 327,790 1 .247,564 7.616 23,328,618 662,483 S 2.493.348 47,288 26,979,687 9,4.018 1 1 _ � 64 •1 . aY'may.�•+►�} -, J'f ... { f ' �, y` _ .- h - i tit :: • 4e. Loa ftj 1. -y .,•� �L• �h' �' "+,.�: - .; `.� -� •�_.i[ a ,. :• '^Z' � - * des*��"��� ,yi.•• if L - rt _ p :.�"f W CITY OF NlJMTll;GTON BEAM ----- STATEMENT OF TAX DEL1NQJEK 1ES ANL iMP4UNDS SCHEDULE 1y July 1 , 1967 through June 30, 1977 Secured Taxes Unsecured Taxes Fiscal flax Total Delinquency Total Delinquency Year Rate Total Levy Collections Amount Percent 'Total '.e_ y Collections Amount Percent ! ounds 1967 S 1.33 2,864,489 2,692.137 58,931 2.06% g8,746 97,746 11000 1,0)% )13,Q), 1968 1.33 3►471 ,790 3,314,279 51 ,781 1.49 168,867 167►923 944 .56 105,730 1969 1.43 3,898.311 3,763,889 41,777 1.07 204,032 201 .964 2,068 1 .0! 92,645 1970 1 .45 4.179,522 4,015,842 50,787 1.22 252,136 250,534 1 ,602 .63 112,893 197) ).45 4,433,058 4,3)6:156 62,315 1.41 291 ,311 288,965 2,346 .80 54.587 1972 1 .62 5,565,713 5,395►846 59.651 1.07 432,0250 401,297 4,628 1 .07 136,322 1973 1.62 4,249,372 6,094,.1il 51 ,276 .82 397,216 391,186 6,030 1.51 130,985 1974 1.62 6,703.620 6,499,009 66,6E4 .99 461 ,181 456,296 4,BB5 1 .06 137,957 1g75 1.62 8,099,022 7.844,556 74,987 .93 486,545 484,124 11 ,169 2.30 179,439 1976 1 .62 8,852,049 8,587,784 82,622 .93 545,344 51C,539 28.798 4.36 186,648 1977 1 .62 91982,983 51844,450_ 116,794 1 .17% 549.99-4 538.370 6.791 1 .23$ 328A51 66 MY OF HUN97NGTHN BEACH STATEMENT OF FUTURE GENERAL OBLIGATION BOLDED DEBT REQUIREMENTS BY YEAR SCHEDULE V BASED ON BONDED DEBT JUNE 30, 1977 Fiscal Year Principal Interest Total 1978 S 200,000 304,375 504,375 1973 210,000 294,187 504087 1980 220.000 283,425 503,425 198) 230,000 272,088 502,088 1982 210,000 260,525 470,525 1983 220,000 248,450 468,450 1984 235,000 235,8GO 470,800 ' 1985 245,000 221,700 466,700 1986 260,000 207,000 467,000 1987 280,000 l9i ,400 471 ,400 i 1988 295,000 174,600 469.600 1 1989 310,000 156.900 466,9no 1990 330,000 138,300 468.300 1991 .450,000 118,500 468,500 1992 370,000 97.500 467,500 1993 395,000 75,300 470,300 1954 415,000 51 ,600 466,600 I 1995 445,000 26,700 471 ,700 Total S 5,220,060 1,358,350 $,578,',O The 1955 Water General Obligation Bonds will be totally pa!d in August, 1980. e 1 a 67 CITY OF HUNTINGTON BEACH STATEKEKT OF FUTURE WATER REVENUE BOND REQUIRE►'+ENT BY YEAP SCHEDULE V1 BASED ON GUTSTANDIH6 DEBT • JUNE 30, 1277 { Fiscal Year Pr=nctgal Interest Total 1 1978 $ 124 000 95,400 21$,400 1979 120.000 91,500 2119500 1980 130,000 87,405 217,405 1981 130,000 63,115 213,115 1982 140,000 78,660 218,650 1983 150,000 73,800 223,800 1984 150,000 68.700 218,700 1985 160,000 65.350 225,350 1986 160,000 59,350 219.350 1987 170,000 53,250 2c3,250 1988 180,000 47,030 227,030 1989 180,0M -'0,000 2?0,000 1990 19c,000 33,075 223,075 1991 200,000. ' 26,250 226,250 j 1992 210,000 19,075 229,075 1993 220,000 11 ,550 231 ►550 1994 220,000 3.850 223,850 Total $ 2,830,000 937,360 3.767,360 i i PUNYINGTON BEACH PUBLIC FACILITIES CORPORATION SCHEDULE Vil STATEMENT Of BONDED DEBT YEAR €LADED JUNE 30, 1977 Date Years Bonds Rands Bonds of of Pate of Original Outstanding Matured Outstanding Description Bonds _ Maturity interest Is ue Ju,ly ti 1976 During Year _ June 30, 1977 Civic Center Jan. , 1972 1975-1982 7.00% $ .2,010,000 1,600,OGO 239,000 1,379,000 Leasehold Mort- i983 5 70 336.000 336,000 -0- 330,000 ' gage Bonds, 1984-1996 5.50 7440,000 7,040.000 -0- 7,040700 First !slue 1997-1998 5.00 1,720.OW 1,720,000 -0- _ 1,720,000 _ Total 11,100,000 10,690,000 230,000 10,460.000 Central Library Feb. , 1972 1975-i983 7.00% 1.220,000 1 .115.000 110,000 1 ,005.000 Leasehold Mort- 1984 5.90 180,000 180,000 -0- 180,000 gage Bonds, 1985 5.40 190,000 190,000 -0- )90,000 Second Issue 1986-1988 5.50 640,000 640,000 -0- 440,000 1989-199) 5.60 770,000 770,000 -0- 770,000 1992 5.70 290.000 290,0e0 -0- 290,000 1993-199a 5.75 965,000 965,000 -0- 965,000 ( 1996-1997 5.00 145,000 745,600 -0- 745,000 i Total ;1000,006 4,895,OU0 110,000 4,785,000 l Total bonded debt $)6,109,000 15,585,000 340,000 15,245,000 I � 1 I 69 Qff OF HUMNGTON D€AM HUNTIN6704 BEACH POBLIC FACILITIES CORPORATION SCHEDULE Y1II STATFMGNT OF FUTURE DEBT REQUIREKENTS e': YEAR 13ASED ON BONDED E,-"BT • JUNE 30,' 1977 Fiscal Clylr Center Issue llhrarw lEsl,a Total Year Principal _ Interest,__ Total _ Principal _ Interest Total Principal _ Interest Total 1978 $ 240.000 587,910 827,910 120,000 274,617 394,617 36a,000 B62,527 1 ,222,527 1579 260,000 571 ,110 831,110 130,000 265,867 395.867 390,000 836,977 1 ,226,977 1380 270,000 552,310 822,910 135,000 256,592 391 ,592 405,000 809,502 1 ,214,502 1981 290.000 534,010 824,010 140,000 246,967 386.967 430,000 780.977 1 ,210.977 1g82 .310,000 5t3,710 823,710 150,000 236.817 386,817 460,000 750,527 1 .210,527 1983 330,000 492,010 822,010 160,GOO 225,967 385.967 490,000 717,97? 1 ,207,977 11984 360,000 473,200 83;,200 170,000 214,417 384,417 530,000 687,617 1 ,217,617 1985 380,OGO 453,400 833,400 180,00C 203,157 383,15" 560,6c0 656,557 1 ,216.557 1986 400,000 432.500 832,500 190,000 1.92,717 382,717 590.000 625,217 1 ,215,217 1987 430,OCO 410,500 840,500 200,000 182,087 382,087 630,000 592,587 1 .222►587 1988 460,000 386,850 846,850 210,000 170,812 380,812 670,000 557,662 1 ,227,662 i 1989 490,ODO 361,550 851,550 230,000 158,712 388,i12 720,003 520.262 1 ,240,262 1990 530,000 334,600 864,600 240,000 145,667 385,667 770,000 480,267 t,250,267 1991 560,000 305,450 865,450 260,000 131 ,667 391,667 820,000 437.117 1 ,257.117' 1992 600,000 274,650 874,650 270,000 116,3'77. 386,827 870,000 391 .477 1 .261 .477 1993 640,000 241 ,650 • 881 ,650 290,COD 101 ,002 391'O'n 930,000 342,652 1,272,652 1994 68n,000 206,450 886,450 305,000 83,968 388,965 985,000 290,418 1,275,418 1995 730.000 169,050 899.050 320,COO 66,000 386,00^ 1 ,050,000 235,050 11295,OFO 195t. 780,000 128.900 908,900 340,000 47,025 387.025 1,120,000 175,925 1.295,925 1997 830,000 86,000 916,000 360,000 28,250 388,250 1,190,000 114,250 1 ,304,250 1958 890,000 44,500 934,500 385,000 9,625 354,625 1,275,000 '4,125 1 ,329,125 Total $10,460,000 7,560,910 1B 020,9!0 4,785,000 y,358,760 3.143.7b0 15,245,000 10,91S1670 26 164 670 Principal Due: January �epttmber Cnterest Due: July and January September and March 70 CITY OF HUNTINGTON 3EAal PARKING AUTHORITY OF THE CITY SCHEDULE IX OF HUNTINSTON BEACH STATEMENT OF BONDED DEBT JUNE 30. 1,� 7 t . Date Years Bonds Bands Bonds of of state of Original Outstanding Matured Outstanding Description Bonds M;turlty interest Issue July I, 1976- During Year June 36, 1977 y 1968 Parking Sept., 1968 1970-1972 r 00% 5 150,000 -0- -0- Revenue Bonds 1973-1979 4.75 470,000 290;000 65,600 225,000 1980-1985 5.00 570,000 570,000 -0- 570,000 1986-1993 5.25 11110,000 1,11,0,000 -O- I1110,000 Total $ 2,300,000 1,970,000 65,Goo 1 ,905,000 PARKING AUTHORITY OF THE CITY OF WNTiNGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR 1 BASED ON BONDED DEBT JUNE 30, 1977 Fiscal Year Principe* Interest Total I -- 1978 70,000 9518M 165,9n0 1979 75,000 92,356 167.356 1980 80,000 88,675 168,675 1981 85,000 84,650 169,650 1982 85,000 80,400 165,400 1983 90,000 76,025 1",025 - 1984 95,000 71 ,400 i66,400 1985 ins,000 66,400 171.400 1986 110,000 61,025 171,025 1987 115,000 55,256 170,256 1988 120,000 49,088 169,088 1989 125,000 42,656 167,656 1990 135,000 35,831 170,831 1591 140,000 28,613 168,613 1992 150,000 21 ,000 171,000 1993 160,000 12,863 172,863 1994 165,OGO 4,331 169,331 Total 9 2,87t.3fiq 71 - --�` i i . i I HUNTINGTON DEAN PUBLIC FACMITtE.S. CORPORATION FINANCIAL STATEMMI S t JUNE 30.1977 (With Accountante Report 7tereon) i i I � I 7hn Honorable Board of Directors Huntington Beach Publin Fat:i!ities Co r oration Huntington Beach, California We have examined the combined balance sheet of :his Huntington Beach Public Facilities Corporation at of June 30, 1977 and the related statements of earnings and retained earnings (accumulated deficit) and changes in cash position for the year then ended. Our examination was made In accordance with generally accepted auditing standards, and accord- ingly in:ludid such tests of the accounting records and such other auditing procedure:; as ke considered necessary in the circumstances. in our opinion, the aforementioned financial statements present fairly the financial position of ;he Huntington Beach Public Facilities Corporation at Jura 30, t977 and the results of its operations for the year then vr�-ed fr. coi„ormity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. qwe46�, November 11 , 1977 72 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED BALANCE SHEET E„XH131T A JUNE 30, 1977 i Civic Tocal Center Prolect Library Project Assets Assets restricted as to use: Cash held by trustee $ 4,690 143 4,54: r Time certificates of deposit 552,551 351,815 200,736 ` Temporary investments in U.S. government ` securities, at cost (market: $1 ,526,358) 1 ,527,895 1,042,061 495,d34 Accrued interest receivable 31,859 20,459 1 . ,400 Inter project balances - (1 ,383) 1 ,383 Total assets restricted as to use 2,116,995 1 ,413,09S 703,900 Long term leases receivable less unearned Income of $13,039,201 (Dote ;) �13,292,699 a 077,319 4,214,?80 Total assets 515,409,ng4 10,491 ,014 k,W,680 ►.iabill0 es and Retained Earnings (Accumulated Deficit) � — Current iabi i i.tits: Accrued Interest payable S 366,339 2T1 ,355 94,984 ? Natured interest payable 1 ,900 1 ,900 Accounts payable 16,722 5,750 10,972 "urrent installment of bnnds payable (Note 4) 360,000 241),000 1?C,C00 ue to (from) the City of Huntington Beach 2,459 (2 J.-44) _ 4,763 . Total current liabilities 747,420 516,)61 230.659 i Bonds payable, c►et of current installment (Note 4) 14,885,000 10,220,000 4,665,000 i Total liabilities 15&1,420 10,736,761 41895,659 ( Retained earnings (accumulated deficit) (222,724) (245,747) 23,021 Liabilities and retained earnings taccumulated deficit) $ ,15,409,694 10.491.014 4,918,680 i "Ste accompanying notes to financial statements 73 ` HUNTINGTON BEACH PUBLIC FACILITIES CORPORM ON COMBINED STATEMENT OF EARNINGS AND�TA I NED EARNINGS (ACCUM LATi:D DEFICIT) YEAR ENDED JUNE 30, 1977 EXHIBIT B • Civic library Comb i�:.i Center Proje t i rmject Operating revenue: Lease Income (dote 3) a 1 ,253.900 354.9C5 359,0c10 3 Operating expenses: Amortization of lease receivable 234,892 160,922 73,970 Other 42,994 19,439 23,555 Net operating Income 976.014 674,539 301 ,475 Nonoperating revenue: Interest earned 147,631 100,312 47.319 ; Total operating and nonoperating into nz 1 ,123,645 774.851 348.794 Nonorerating expenses: Irterest expense 886,677 604,010 282,667 i Net earnings 236,968 170,841 66,127 Accumulated deficit at July 1 , 1976 (453,694) (416,588) (43.106) Retained earnings (accumulated deficit) at June 30, 1977 $ (222,7 .6) _ (245,i47) 23,021 See accompanying notes to finencia) statements. 74 HUitTINGTON BEACH PUBLIC FACIL1TiE5 CORPORATION COMBINED STATEMENT OF tMNGES IK CASH POSITION EXHIBIT C • YEAR ENDED ,DUNE 30, 1977 Civic Library Combined Center Prolect Project So,irce of funds: } : funds provided from operations: Net earnings $ 236,968 170,841 66,127 Decrease in long term lease receivable 234,892 160,922 73.970 i� Decrease in time certificates of deposit 140,053 91,506 48,589 i increase (decrease) In inter-project balances - 1,383 (1 ,383) Increase In amount due to City of Hu;tington Beach 61081 816 5,265 618,036 425,468 192,568 Use of funds: Redemption of bonds payabl2 30,000 230.000 110,000 , Increase In temporary investments in U.S. government securities 265,796 187,775 A.021 Increase in accrued interest receivable 91E00 9,200 - 614,996 426,975 188,021 Net increase (decrease) in cash 3,040 0 ,5137) 4,547 Cash balance at July 1, 1976 1,650 1,650 - ICash balance at ,tune 30, i977 4,690 143 4,547 See acccmpsnying notes to financial statements. j. ( ' - 75 KUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 309. 1977 I . Stmanary of Significant Accounting Policies The following is a sumna ry of significant accounting policies used by the Huntington Beach Pubiic Facilities Corporation (Corporation) . Basis of accounting The accompanying coir4ined financial statements of the Corporation have been prepared using the acr-aal basis of accounting. investments Investments are stated at cost. Such investments generally consist of Federal Government backed secur:ties and bank time certificates of deposit. Investments of the Corporation, other than bank time certificates of deposit, are not adjusted for amortization of purchase premium or discount, which has been determined to be immaterial at June 30, 1977. Funds S Under the provisionsof the bond indenture agreements, the Corporation Is r+quired to maintain separate 1 accountability for %+arious types of funds the Corporation receives. A descripti;,n of these funds, which have been combined for financial statement presentation, is as follows: Account Source Use Reserve Fund Bond proceeds and rental revenue fund Bond principal and interest Constructiot: Fund Bond proceeds Cost of•project Interest During Construction Bond proceeds First twenty- six months' interest Fund on bands 76 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATtAENTS, C014T1NUED r 1 . I . Summary of Significant Accounting Policies, Continued Account Source Use Rental Revenue Fund City of Huntington Beach rent payments Required transfers to various funds and/or other specified purposes i Debt Service Fund Transfers from revenue fund Bond principal and interest i A4.ministrative Expenses Fund Transfers from reve�sue fund Corporation operating expenses Bond P.ederaption Fund Transfers from revenue fund Call and redemption of bonds, changes, alterations or additions to the project, or reimbursement of any rase rent or additional rent ' previously paid by the City of i . Huntington Beach Upon completion of construction, separate rental revenue funds were established to account for all lease and other revenues from the City of Huntington Beach for the Civic Center and Library. The separate construction funds for the Civic Center and Library projects have been left open to pay for impr-yements and modifications to the project structures as approved by the W rectors of the Corporation. Money in the respective rental revenue funds is disbursed as follows: First, to debt service funds In amounts suf. icient to pay one succeeding principal and two succeeding interest installments; Second, ( amo+sn.s, necessary to restore the respective reserve funds to armunts equal to (.ne year's lease revenue; i Third, admi-istrative expense funds equal to the budgeted administrative expenses of the Corporati.-)n; I Fourth, all remaining amounts to the bond redemption funds. Money accounted for in the bond redemption fund is to be used to correct deficiencies, as may arise, in t the debt service funds, reserve funds or administrative: expense funds, respectively. Money remaining After the minimum requirem-nts of the bond agreements have been met may be used to purchase or redeem outstanding bonds to make improvements or nodiffcations to the project structures or to reimburse the City of Huntington death for rents paid to the Corporation. 2. Crganizat;on The Huntington Beach Public Facilities Corporation was incorporated under the laws of the State of California as a non-profit corporation on November 25, 1970. The Corporation was formed for the primary purpose of financing and constructing a civic center complex and central library for th:City of Huntington Beach. The constructed c=vic facilities have been leased to the City of Huntington Beach under long term le3se agret;e:nts. {Note 3). 77 HUNTIN&TOII BEACH PJBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS, CONTINUED • 3. Leases The Corporation has entered into two lease and sublease agreements with the City nf Huntington Beach. The terms of the leases are sumnariaed as follows: a) Civic Center lease - The Corporation has entered into a -ase and sublease agreement with the City of Huntington Beach for the Huntington Beach Civic Center. The site upon which the Civic Cuter is constructed is awned by the City and has been leased to the Corporation for an advance rental of S350,000. The term of the lease is from January 15, 1972 to one week after the termination of the sublease described in the next paragraph. The Corporation has subleased the Civic Center site and civic buildings constructed thereon, to the City for an annual rental of $854,900. This sublease commenced July 1 , 1974 and extends for a term of the earlier of: (a) thirty (30) years or (b) until the borded indebtedness incurred by the Corporation to r5nstruct the Civic Center has been paid. b) Central Library lease - The Corporation has entered into a lease and su�lease agreement with the City of Huntington Beach for the Central Library. The site upon which the Central Library is constructed is awned by the City and has been leased to the Corporation for an advance rental of $300,000. The term of the lease is from September 1 , 1972 to one week after the termination of he sublease described in the next paragraph. The Corporation has subleased the Central Library site and building constructed thereon to the Cit- for an ar+tual rental of $399,000. This sublease commenced February 15, 1.975 and extends for a team of: (a) thirty (30) years or i.b) until the bonded indebtedness incurred by the Corporation to construct the Central Library has been paid. y Under both agreements, the City is required to pay all taxes, insuraice, aJministrative and maintenance costs associated with the facilities under lease. At the conclusion of the lease agreements title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such lease be treated as a financing lease. Under the financing method, the excess of aggre- gate rentals over the cost of the leased property is generally designed to compensate the lessor for the use of funds invested. Accordingly, at June 30, 1977, leases receivable from the laity of Huntingtur. Beach totaling $13,292,699 net of unearned interest, for the Civic Center and Central Library facilities have been reflected to the financial statements. 78 1 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION ?TOTES TO FINANCIAL STATEMENTS, CONTINUED I . 4. Outstanding Indebtedness A summary of the Corporation's bonded indebtedness as of June 30, 1977 is as follows: Maturities Date Interest Original Outstanding Annual Period Bond issue issue rate issue June 30, 1977 requirements covered Civic Center: l Leasehold Varying amounts Mortgage Bonds, January 5.00 - from $200,000 to 7irst Issue (a) 1972 7.00% $ 11 , 100,000 $ 10,460,000 $890,000 1975-1998 Central Library: Leasehold Varying amounts Mortgage Bonds, February 5.00 - from $105,000 to Second Issue (b) 1972 7.00% 5,000,000 4,765.000 S385,000 1975-1997 $ 16,100,000 S 15,245,000 a) The $11 ,100,000 principal amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972 and have been issued as coupon bonds in $5,000 denominatons. The Bonds, which are serial in nature, mature annually on January 15 of each year. Interest is payable semiannually on January 15 and July 15 of each year. f Bonds maturing on or prior to January 15, 1582 are generally not subject to call and redemption prior to their l Final maturity date. Peads maturing or, or after January 15, 1983 (a principal amount of $9,090,000) are subject to tail and redemption at the option of the Corporation, In total or in part, on January 15, 1982 j or on any interest payment date thereafter. Call price of the bonds shall be an amount equal Co the prin- cipal amount plus a premium equal to 1/4 of 1 percent of the principal amount redeemed, plus 1/4 of I percent for each year or fraction of a year from the redemption date to the maturity date of the bonds. In no event shall the premium exceed 4 1/2 percent. b) The $5,000,000 of principal amount of Leasehold Mortgage Bonds, Second 1ss--je (Bonds) are sated September 1 , 1972 and have been issued as coupon bonds in $5,000 denominations. The Bonds., which are serial in nature, mature annually on September I of each year. Interest is payable semiannually on March 1 and September 1 of each yecr. Bonds maturing on or prior to September 1 , 1982 are generally not subject to call and redemption prior to their fixed maturity date. Bonds maturing on or after September 1 , 1983 (a principal amount of $3,950,000) are subject to call and redemption at the option of the Corporation, in total or in part, on September 1 , 1982 79 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO fINANMI—f TAfEMENTS, CONTINUED y. OuZr tstt�.�=:ng indebtedness, Continued or on any intern. _ :ayment date thereafter. Cali price of the Bonds shall be an amount equal to the prin- cipal amount redeemed plus a premium equal to 1/4 of I percent of the principal amount redeemed, plus 1/4 of i percent for each year or fraction of a year from the redemation date to the maturity date of the Bonds. In no event shall the premium exceed 4 percent. � f 1 80 eg 0 i PARKING ACri'HORITY OF THE R CITY OF HUNTINGTON BEACH FINANCIAY. STATEMENTS JUNE 30,1977 (With Accountants'Report Thereon) i I PEAT, MARWICK,IMITCHELL & v7. CERTI ISI) PUBLIC 1CCOUIM.42MS ' eeo 24IlWPOW CRNTEB DRIVE Hs�r.•o�rr nasce,cs�Iroaxtr► eeeco The Honorable Members of the Parking g Authority City of Huntington Beach Huntington Beach, California We h3ve examined the Lambined balance sheet of the Parking Authority of the City of tuntington Beach as of June 30, 1977 and the related statements of earnings and retained earnings and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards and accordingly Included such tests of the accounting records and such other auditing procedures as we enn- :Aiaered necessary in the circumstances. i in our opinion, the aforementioned financial statements present fairly the financial position of the Parking Authority of the City of Huntington Beach at June 30, 1977 and the results of Its operations for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. I N 4* .e-,W tt' November 11 , 1977 el • � i PARKING AUTHORITY OF THE CITY OF HUNTING—ION BEACH BALANCE SKEET EXHIM T A JUNE 30, 1977 Assets: Current assets: Cash and term deposits $ 131 ,357 Receivables: Due from general fund $ 1 ,448 Accrued Interest receivable 28,474 Total receivables _ 29,922 Total current assets 161 ,279 Assets restricted a! to use - investments, at cost which approximates market value (Mote 4) 693,417 Fixed asse's, at cost: I Land 371 ,065 Improvements $ 1 ,694,089 Less: allowance for depreciation 532,533 1 .161 .556 Total fixed assets 1,532,621 Total assets S 2.3871317 Liabilities and Retained Earnings: Current liabilities: Accrued interest payable $ 32,309 Current installment of bonds payable (Note 4) 70,000 Total current liabilities 102,309 Deferred lease income (Note 3) 170,050 Bords payable, net of current installment (Note 4) 1 ,835,000 _ Total liabilities 2,107.359 Retained earnings 279,958 Total liabilities and retained earnings $ 2.387.317 See accompanying notes to. financial statements. 82 � I PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1977 EXHIBIT 9 Operating revcaue: Lease income (Note 2) S 170,050 Operating expenses: Depreciation 72.684 Net operating income 97,366 Nonoperating revenue: Interest earned 50,197 Total operating and nonoperating income 147,563 Nonoperating expenses: 1 Interest expense 97.983 1 Net earnings 49,580 Retained earnings, July 1 , 1976 230,378 Retained earnings, June 30, 1977 S 279,953 I j See accompanying notes to financial statements. E i 83 f : PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF CHARGES IN FINANCIAL POSITION YEAR ENDEn *10HE 30, 1977 EXHIBIT C • Sources of working capital : Current operations: Net earnings $ 49.580 Charges against earnings not involving working capital - depreciation 72,684 Total working capital provided 122,264 Disposition of working capital : Retirement of bonds 65,000 Increase in restricted assets 38,814 l Additions to parl 'n0 improvements 23,006 Total 12b,820 i . Decrease in working capital S 4,55e Changes in components of working .-aplgal were as follows: Increase (decrease) In current assets: Cash and term deposits $ (15,722) Receivables 111,142 ( Total (5,580) ! Decrease in current 'liabilities -- accrued interest payable 1 ,024 Decrease In working capital S 4,556 See accompanying notes to financial statements. T 7' 1 � 84 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS J UNE 30, 1977 (1) Summary of Significant Accounting Policies Basis of Accounting The accompanying combined financial statements of the Parking Authority of the City of Huntirgton Beach (Parking Authority) have been prepared using the accrual basis of accounting. Fixed Assets and Ccpreciation { Fixed assets are recorded at cost. Land improvements are depreciated using the straight line method over i the term of the lease (26 years) with the City of Huntington Beach (City). Investments Investments are stated at cost. Such investments consist of Federal governmen- backed securities and I bank time certificates of deposit. The :nvestments of the Parking Authority, other than time certifi- 1 c,:-tes o; deposit, are not adjusted for amortization of purchase premium or discount, which has been determined to be immaterial at June 30, 1977. (See Note 4) tit} Operations The Parking Authority is an independent public agency established in 1967 under provisions of the Parking Law of 1949. The primary purpose of the Parking Authority is to provide off-street parking facilities for the City of Huntington Beach. The Parking Authority leases its parking facilities to the City under a lease agreement which requires minimum annual rentel payments of $17U,05O through July 1 , 1993. The Parking Authority obtained the funs to acquire and construct these facilittes through the issuance of $2,300,000 of revenue bonds which are s,,cured by the rental payments received from the City. The rental is payable annually on July 1 . Rental incoh.e is to be used for bond principal and interest requirements. Exciss funds, if any, including Interest earned thereon, which are not required to meet scheduled principal and interest payments and which are not required by the bond indenture agreement to be established as a reserve may be: (1) used to finance additions and improvements to the parking facility, or (2) applied as a credit against annual rental payments from the City. E 85 i i PARKING AUTHORITY OF THE CITY ' OF HUNTINGTON BEACH N07ES TO FINANCIAL STATEMENTS, CONTINUE© {2} Operations, Continued Under the terms of the lease agreement dated September 30, 1968 between the Parking Authority and the City the lease is to terminate after all of the 1968 revenue bonds are retired or provision for retirement has been made. All costs of maintenance and cperation have been assumed by the City. The City must also pay, in the form of additional rent, all taxes, assessments, insurance, fees and ether expenses of the Parking Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility. I ` (3) Deferred Lease income Prior to June 30. 1977, the City prepaid the 1978 fiscal year annual rental parking facility rental aggregating $170,050. Such rental , normally due on Jul} 1 , has been treated as deferred lease Income for financial statement purposes. (4) Bonded Debt A summary of the Parking Authority bonded det)t is as follows: Bonds Amount of Bonds Matured Binds Date "ears of Rate of Original Outstanding During Outstanding Description of Issue Maturity Interest Issue July 1 , 1976 Year 6/30/77 1.968 Parkin September, 1970-72 6.00$ 150,000 g p 5 Revenue Bonds 1968 1973-79 4.75 470,000 290,000 65,000 225,000 1980-85 5.00 570,000 570,000 570:000 1986-93 5.25 1 ,110,000 1,110,000 - 1.110,000 $2,300.000 1 .970,000 6i;000 1 ,905,000 _ 86 - PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH MOTES TO FINANCIAL STATEMENTS, CONTINUED (4) Bonded Debt, Continued II Interest is payable semiannually each year on March I and September 1. Provisions of the bond agreement provide for the establishment of three special funds as follows: a) Sond Service Fund - All revenues received by the Parking Authority fron the lease of the parking facility are placed in the bond service fund. Money in this fund is used to pay bond principal and interest. Amounts received in excess of the amount required to meet principal and interest requirements may be transferred to the reserve rund or working capital fund. under certain circumstances such excess funds may be used to finance additions and improvements or reduce the annual rental due from the City. t b) Reserve Funds - An amount equal to one-haif the maximum annual debt service must be set aside to be used to pay principal and interest coming due =n the event there is ;asufficient money in the bond service fund and may be applied to the final payments of principal and interest. c) Working Capital Fund - After provision has been :Wade for payment of bond principal and interest and an appropriate reserve fund balance has been established, excess money, if any, remaining in the bond service fund may be transferred to the working capital fund to be used to pay the administrative expenses of the Parking Authority and maintain the working capital fund's cash at a balance of at least $1 ,500. l At June 30, 1977, the Parki.ig Authority maintained the following investments pursuant to the terms of �! the bond agreement (See blot~ I: : Bond Service Fund $ 602,629 Reserve Fund 90,788 , $ 693.417 I i 87 i . l PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH I NOTES TO FINANCIAL STATEMENTS, CONTINUED • Bonds maturing on and after September 1 . 1980 are subject to call and redemption at the option of the Parking Authority as a whole or in part, In inverse order of maturity and by bond number within a single maturity on September 1 , )979 and on any interest payment date thereafter. " The bonds are redeemable at par value plus accrued Interest and a premium equal to 114 of i percent for each year or portion of a year from the redemption date to the maturity data, up to a maximum of 3 1f2 ' percent. I i i I � 88 fiil�lUt� L FIFIfiFICIfiL FiEP0fim'v of the CITY OF HUNTINGTON BEACH for the FISCAL YEAR ENDED JUNE 30, 1978 _ L[� DEPARTMENT OF PINAf�F .. Frank B. lvgtrelb, Directs' Earl Horton, Asst. Director CITY OF HUNTINGTON BEACH ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Exhibit Page Letter of T-ansmittal 1 Elected City Officials 4 Departments of the City 4 Accountants' Report 5 Financial Statements: Combined Balance Sheet - All Funds and Account Groups A 6 General Fund: Balance Sheet B 10 Statement of Changes in Fund Balance C 11 Statement of Revenue - Estimated and Actual D 12 Statement of Appropriations, Expenditures and Encumbrances E 16 Special Revenue Funds: Combined Balance Sheet F 20 Combined Stats,ent of Changes in Fund Balance G 22 Statement of Revenue, 'expenditures and Encumbrances Budget and actual: Special Gas Tax Fund H 24 Civic Improvement Fund la 25a Equipment Replacement Fund lb 25b Sewer Fund J 26 Planned Local Drainage K 27 General Revenue Sharing Fund L 28 Federal Kanpower Grant Fund M 30 I Other Grants Fund 8 31 Park Acquisition and Development Fund 0 33 Self Insurance Fund P 35 Traffic Safety Fend Q 36 Parking Meter Fund R 37 _.._..._... i f ------ �--- CITY OF HUN71NGTON BEACH ANNUAL FINANCIAL REPORT TABLE OF CONTENTS w ` t Exhibit Page II[ Debt Services Funds: Combined Balance Sheet S 38 Combined Statement of Revenue. Expenditures. and Fund Balance (Deficit) T 39 Capital Project Funds: Combined Balance Sheets U 40 Combined Statement of Revenue, Expenditures, Encumbrances and Fund Balance 41 Enterprise Funds: Combined aalance Sheet W 42 Water Utility Fund: - Ptatement of Revenue and Expenses X 4i Statement of Changes in Retained Earnings Y 45 _ Statement of Changes in Financial Position 2 46 Meadowlark Golf Course Fund: -� Statement of Revenue and Expenses AA 48 Statement of Changes in Accumulated Deficit SB 49 Statement of Changes in Financial Position CC 50 Trust and agency Funds: i Combined Balance Sheet DD 51 Combined Statement of Changes in Fund Balance EE 52 - It CITY OF HUNUN'GT0N BEACH ~ AI:HUAL FINANCIAL REPORT ' TABLE OF CONTENTS Exhibit Paqe i Motes to Financial Statements 53 ' Supplemental Information (not coverec: in accountant's reports •`� 1 Statement of General Fund Revenues - Other than Property Taxes Schedule 1 62 Statement of r�penditures and Encunbrar.=es for General Fund Schedule 11 63 Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bond Debt to Assessed Value and Per Capita Schedule 111 65 Statement of Tax Delinquencies and ImpoLnds Schedule IV 6e Statement of Future General Obligation Bond Debt Requirements by Year Based on Bond Debt Schedule V 67 _ Statement of Future Water Revenue Bond Requirements by Year on Outstanding 1 Debt Schedule V1 68 Huntington Beach Public Facilities Corporation - Statement of Bonded Debt Schedule VII 69 Huntington Beach Public Facilities Corporation - Statement of Future Debt f" Requirements by Year Rased on Bonded Debt Schedule Vill 70 Parking Authority of the City of Huntington Beach - Statement of Bonded • Debt Schedule IX 71 t Parking authority of the City of Huntington Beach - Statement of Future Debt Requirements by Year Based on Bond Debt Schedule IX 71 . P City of Huntington Beach Public Facilities Corporation Accountants' Report 72 j Financial Statements €' ( Combined Balance Sheet 73 Combined Statement of Earnings and Retained Earnings (Accumulated Deficit) 74 *" Coofibined Statement of Changes in Cash Position 75 I ; Motes to Financial Statements 76 City of Huntington Beach Parking Authority '- Accountants' Report j t .. _ CITY OF::UNnNGTON BEACH ANNUAL FINANCIAL REPORT i TABLE OF CONTENTS Exhibit Page City of Huntington Beach Parking Authority, Continued Financial Statements p Balance Sheet 82 Statement of Earnings and Retained Earnings $3 Statement of Changes in Financial Position 84 t Notes to Financial Statements 85 t�3 r t `7`� arc I iv s e t� ---- CITY OF HUNTiNGTON BEACH !_ OFFICE OF q D1RSCTOR OF FINANCE FRANK B. ARGUELLO, DIRECTOR Mr. Floyd G. Belsito City Administrator City of Huntington Beach, California Dear Mr. 8elsito: Submitted herewith is the Finance [department's annual report containing tha City's financial statements foi- the fiscal year ended June 30, 1978. The comprehensive report encompasses all funds, reflects the results of all , financial transactions, and represents the culmination of accounting processes performed during the fiscal year. General Fund Revenues and transfers from Oth�- Funds for general fund_ g purposes totatl..d $31 ,942,771 in FY-1978, an increase of lk over FY-1977. The revenue from various soLrces and the increase (decrease) over prier year is as follows: Percent Increase (Decrease) Over FY-1977 Source Amount of Total Amount Percent Property Taxes $ 12.491.934 39.1% $ 1,847,963 17.4% Other Local Taxis 7,953.048 24.9 1 .167,392 17.2 Licenses and Pert-its 2,653.129 8.3 (164,080) (5.8) Fines and Forfeitures 216,362 ,7 1 ,554 .7 From Use of Money and Property 1,415,212 4.4 364,274 34.7 From Other Agencies 3,076,250 9.7 508,258 19.3 From Charges for Current Services 938,182 2.9 (4,578) (,5) Other Revenue 99,600 .3 50,886 104.5 Transfers from Other Funds 3,099,054 9.7 629,459 25.5 Total $ 31.942,771 100.J$ $ 4,401 ,128 I5.0$ Gross expenditures and encumbrances for general fund purposes totalled $29,931 ,474 in FY-1978, an increase of 7.71% over FY-1977. Expenditures and encumbrances by function are indicated as follows and demonstrate changes in expenditure and encumbrance levels relative to prior year: i I , 1 ' t ' CITY OF HUNT NGTON BEACH Percent !ncrease (Decrease) Over FY-1977 Function Amount df Total Amount Percent Administrative Services $ 3.797,183 12.7% $ 979,504 34.8% Community Services 9,120,736 30.5 937,303 1.1 .5 Public Safety Services 15,176,821 50.7 784,U4 5.5 Support Services 1 ,836,734 6. 1 (703,902) (27.7) Total Costs $ 29,931 .474 100.0% _$ 1 ,997,769 7.2% t _ j Thy unappropriated general fund balance decreased from $2,650,079 in FY-1977 to $2,158,779 in FY-1978, a decrease of $591,300, or 20.7%. This decrease cannot be attributed to the result of operations but rather to the fact that the City has created an Equipment replacement fund in the amount of $50G,000 and has appropriated $1 ,798,350 to fund employee sick leave and vacation earned and outstanding as of June 30, 1978. Assessed valuation increased by $144,242,510 to $854,321 ,745 in current fiscal year. Current assessed valuation is 20.3% greater than that of the prior year. In fiscal 1.079, it is anticipated that the assessed valuation will decrease to $831 ,783,620 as a result of passage of Proposition i3 i,t June, 19i8. A comparison of assessed valuation over the last three years with anticipated FY-1979 assessed valuation is as follows: y � Assessed Increase (Decrease) Over Prior Year Fiscal Year Valuation Amount Percent 1979 S 831 ,783,620 (22,538,125) (2.0% )978 854,321 ,745 144,242.510 20.3 1977 710.079,235 129.455,785 22.3 1976 580,623,450 5o,6.o,i4o !.6 n obligation b d -Outstanding generalbonds as of June 30, 19i8 rstalled $5,020,000, comprised of $105,000 outstanding on the 1955 Water Bond issuc anal $4,915,000 outstanding on the 1970 Park Bond Issue. There is, as of June 30, 1978, $2,415,000 outstanding on the i963 water Revenue Bond but .his does not represent a general obligation of the City of Huntington Beach. The tax rate necessary to cover bond Interest and redemption on the general } obligation bond issues totalled $ .059 per $100 of assessed valuation in FY-1978 and is anticipated to be $ .059 per $100 of assessed valuation In FY-1979. Comparative data for the City's Water Utility operation for the past two years is as follows: ' 2 1 ► CITY OF BUNUNGTON BFACH T 197E 1977 Total operating revenue S 4,759,570 4,252,495 Net income 905,882 1 ,C95,024 w A supplemental it+fo:mation section has been Included In this report which contains comprehensive statistical data. Such data Is presented so as to relate physicsl, economic, social and political characteristics of our city which should give the readers of this report a more broad and more complete understanding of the City and its financial operations. s In accordance with Section 616 of the City Charter, the City Council shall employ at the beginning of each fiscal year an independent certified public accountant who should examine all City accounts and the results reported to the City Council . The report of Peat, Marwick, Mitchell b Co. , Certified Public Accountants, is Included In th;s report. i wish to express my appreciation to the members of the Finance Department without whose dedicated efforts this report would not be possible. in addition, i would express my appreiclation to you and the City Ccune=l for the continuing support and interest in planning and conducting the fiscal affairs of this city in a responsible and progressive manner. Respectfully submitted,OIL j i r Frank B. Arguello Director of Finance i E _ " � f (31 ,OF HUNInNCTON BEALCH 3 ! ELECTED OFFICIALS ! City Council Ron Shenkman Mayor Richard W. Siebert Mayor Pro Tem Ruth Bailey Councilperson i Don McAllister Councilperson Robert Mandic Councilperson Ronald R. Pattlnson Councilperson John Thomas Councilperson Other Gail Hutton City Attorney W3rren G. Hall City Treasurer pp Alicia M. Wentworth City Clerk ? 1 Departments of the City 2 Floyd G. Belsito City Administrator Richard A. Harlow Assistant City Administrator Frank B. Arguello Director of Finance John F. Behrens Building and Community Development Director Henry H. Hartge Director of Public Works Walter W. Johnson Library Director Vincent G. Moorhouse Harbors s Beaches Director Raymond C. Picard Fire Chief 1 Earle W. Robit3ill+: Police Chief .. James Palin Planning and Environment Director Edward Thompson Personnel Director Norman L. Worthy Recreation 6 Parks Director b t 4: PEAT. ML ARWIC.K. MITCHELL & CO. CERTITIED Pt:i3LIC ACCOU\TA\'TS t 000 SLN}'OHT CENTER DU M NEtitPORT DEACH.CALMORXIA OV060 The Honorable City Council of the City of Huntington Beach 1 . We have examined the financial statements of the various funds and account groups of the City of Huntington Beach for the year ended June 30, 1978 (Exhibits A through EE, on Pages b through 61) , as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, except for the matters discussed in the second paragraph below, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. ` = As explained in 4ote 1 of notes to financial statements, the City has not maintained adequate detailed records of its general fixed assets and those fixed assets of the Water Utility Fund. As a result of such incamplete records, we were unable to satisfy ourselveE, by appropriate audit tests or other means, as to the reasonableness . of the amounts recorded as fixed assets in either the General Fixed Assets Group of Accounts or the Water Utility Fund. � . Because of the materiality of amounts recorded as property, plant and equipment in the General Fixed A.sets Group of Accounts, we are unable to axpress our opinion on the accompanying financial statements of the General Fixed Assets Group of Accounts. In our opinion, except for ,he matters discussed in the preceding paragraph, relative i to the Water Utility Fund, the aforementioned financial statements present fairly the financial position of the various funds and General Lung Term Debt Group of Accounts of the City of Huntington Beach at June 30, 1973 and the results of operations of the various funds and changes in financial position of the Water Utility Fund and the i Meadowlark Golf Course Fund for the year them ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. October b, 1978 5 . -- CITY OF HUNTINGTON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS � JUNE 30, 1978 Special Debt General Revenue Service Fund Funds Funds Assets Cash and term deposits $ 5,743,919 12,997,552 51 ,447 Accounts receivable, net 115,237 17,639 - Delinquent property taxes receivable-net of reserve for t delinquent taxes 176,436 - - I totes receivable - - - Investments at cost which approximate market (Note 5 ) 118,532 - - Other receivables 636 - - Lue from other funds 210,000 691,000 - Due from other governmental units, net 107,087 820,582 7,200 Prepaid expenses 33,401 84,584 - Deposits Amount to be provided for debt retirement - - - - Amount to be provided under financing teases (Note 3) - - - Leased facilities under financing leases (Note 3) Property plant and equipment, net of allowance for depre.latlon - - - Restricted assets - cash and investments 22,664 - - k' i S 61627,912 14.611 .3 7 58,647 I See accempanying notes to financial statements. 1 , 6 �1 j 1CM OF HUNMNGTON MACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS EXHIBIT A i_ ONE )0, 1978 Caaital Trust General General Projects Enterprise and Agency Long Term Fixed -Funds Funds Funds Debt Assets i 82,403 2,966,546 563,513 - - - 264.306 23,975 - - - - 76,101 - 8,379 - - - - 32,269 - - - - - 5,125,011 - - 13,C38,306 - - 13,036,306 25,450.552 - - 18,563,761 327,197 - - - r i .- 82,403 29,049.249 11063,589 18,163,317 31 .602,067 y r 7 WY W»unMncTori BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS JUNE 30. 1978 Liabilities, Reserves, Fund Balances Special Debt and Retained Earnings General Revenue S :rvice Liabi es: Fund Funds Funds Cash overdraft S - 193,7 +3 25,240 Accounts payable and accrued expenses 1 ,367,588 370,773 - Unearned revenue 3,168 - - LiabiiFty insurance claims payable - 47,473 korkman's compensatior claims .payable - 272,623 - 1 Customer exposits 193,800 1 ,517 - f Due to other funds - 491 ,000 - i Accrued interest payable Current installment ox bonds/notes paya blo (Notes 2,6, and 7) - - Matured interest payable - - - Deferred rental income (Note 3) - 601 ,321 - Bonds and interest payable - - - Obligation under financing lea-zes - - Bonds, net of current instal:zrent (Mote 6) - - Notes payable, net of current installmeett (Notes 2 and 7) - - - Tuca! liabilities _ 1 ,564.556 _ 1 ,578,4130 25,240 Encumbrances outstanding 854,144 11308,609 - ,Contributions. Fund balances and Retained Earnings ,Reserves for: Revenue bond retirement - - Future disability _)aims - 572.049 - 1 Other - 70,226 Total reserves - 6477 M - Contributions: -� Contributions in aid of construction. - - - Contribution from. general fund - - - Total contributions - - - Find balances: Una,lpropriated fund balance 2.258.779 10,535,318 33.1107 Appropriated fund balance 1 8 ' 33 176.655 - Total fund balances 4j 2 i07o ,993 3 . + Reserve for investments in general fixed assets Retained earnings Commitments avid contingencies (Notes 4 and 8) - - - $ 6 527.912 14.611 .3,7 5$.647 111 } See accompanying notes to financial statements. 8 1 1 Crff OF HL'MNCTON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS ZXHIB:T A, Continued .TUNE 309 1978 Capital Trust General General Projects Enterprise and Agency Long Term Fixed Funds Funds Funds debt Assets 619,205 - - _ 162,798 203,673 134,732 305,011 16,370 - - 17,698 - - 13,038,306 - L,i75.000 - 4,820,000 - - - - I.917_673 - 5,087,b78 221 ,371 18,10,317 - 5,093 - 175.252 - - 15,121,693 i l 35��932 ' 77,310 _ 842,218 _ 7,304,695 82,403 29,049,250 1 ,063.589 18,163,317 31 ,602,067 9 CITY OF HUN71NGTON BEACH GENERAL FUND EXHIBIT B BALANCE SHEET ' JUNE 30, 1978 Assets Cash and term deposits $ 5.743,919 Accounts receivable - net 115,237 Delinquent property taxes receivable - net 1'/c,436 Other receivables 636 Due from other funds 210,000 Due from other governmental units 107,087 Investments, at cost which approximate market (Note 5) 118,532 Prepaid expenses 33,401 Restricted assets - cash 22,664 S 6,527,912 Liabilities, Reserves and Fund Balance Liabilities: Accounts payable and accrued expenses g 1 ,367,588 j Unf..rned revenue 3,168 r I Customer deposits 193,800 1 Total liabilities 1 ,564.556 n Encumbrances outstanding 854,144 Fund balance: Appropriated fund balance t ,850,433 Unappropriated fund balance 2,258.779 t Total fund balance 4,109,212 S 6,577.912 1 See accompanying notes to financial statzments. le CITY OF HUN77NGTON REACH GENERAL STATEMENT OF CHANGES F1 UND EXHIBIT C N FORD BALANCE YEAR ENDED JUNE 30. 1978 Fund balance. July 1 , 1977 $ 2.05,079 f Add: Revenue and tr�ins+rers 31 ,942.771 Cancellation of 1977 outstanding encumbrances 954,018 } Other 4.421 Total additions 32,901 ,210 f Deduct: 1 Expenditures and encumbrances M 931 ,474 Transfer to Self Insurance Fund 1 ,225,249 j Transfer to Equipment Replacement Fund 500,000 A Transfer f balances of closed grant from Grant Fund 10,354 i. Total dt.iuctions 31 ,667,077 1 Fund balance, June 30, 1978 $ 4,109,212 � At June 30, 1978 fund balance was comprised as follows: Unappropriated $ 2.258,779 f i Appropriated I ,850,4?z 1 ! $ 4.109,212 i See accompanying notes to financial statements. x i I c 'S E i CITY OF HU)Y' INGTON BF-ACH .GENERAL FUND EXHIg1T D STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 1978 Excess � of Actual Percentage Revenue Over o'• Original Revised Actual (Under) Estimate " Qudget Change Budget Revenue Estimate _ Realized General Property Taxes Current taxes - secured S 11 ,417,103 56,588 11 ,473,691 11 ,793,833 320,142 103 r Current taxes - unsecured 673,775 (9,175) 664,600 670,140 5,540 101 Interest and penalties 20,000 20,000 24,035 4,035 1?11 Aircraft 4,503 (1 ,328) 3.172 3,926 754 124 Total general property taxes 12,115,378 46,085 12,161 ,463 12,491,93? 3301471 _ 103 I Other Local T3xes ! , Sales and use tax 5,830,000 5,830,000 6,147,068 317,068 105 Franchises - utility 450,000 450,000 490,167 40,167 109 Franchises - pipeline 10.000 10,000 21 ,311 11 ,311 3 In lieu - water utility 584.000 584,000 663,535 79,535 11 Occupancy tax 80.000 80,000 79,594 (406) 99 Cigarette tax 500.000 500,000 550,S03 50,503 110 Real property transfer tax 870 870 7,454.000 - 7,454,000 7,953,048 499,048 107 Total other local taxes � Licenses and Permits License - business 560,000 560,000 648,648 88,648 116 License - oil well production 900,000 900,000 903,338 3,338 100 License - bicycle 20,000 20,000 8,581 01 ,414) 43 License - oil inspection 76,000 76,000 75.386 ;614) 99 License - ani-nal 160,000 160,000 163,426 3,426 102 Permits - building 570,000 570,000 464,715 (105,285) 82 Permits - plumbing 135,000 135,000 102,019 (32,981) 76 Permits - electrical 14C,000 140,000 148,858 8,858 1,,16 Permits - heating 65,000 65,000 50,118 04,882) 77 Permits - waste water 22,000 22,000 2: ,960 (40) 100 Permits - street and curb cut $ 45,OOC "5,000 29,994 (15,006) 6' a 12 Z CITY OF IJUN13NGTON BEACH a GENERA! FUND EXHIBIT D. Continued � • STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30. 1$7$ ' Excess of Actual Percentage Pevenue Over of Orig►nal �.evIsed Actual (under) Estimate Budget Change Budget Revenue Estimate Realized Licenses and Permits, Continued Permits - other S 18,000 18,000 36,086 18,086 200% Total license-. and permits 2.711 ,000 _ 2,71110�q 2.653,129 (57,871) _ 98 Fines and Forfeitures Court fines 170,000 170,000 185,243 15,243 l09 Library fines and fees 28,500 - 28,500 31 ,119 2,619 i09 Tctai Fines and forfeitures 196,500 198,500 216,362 17,862 109 Use of Money and Property Interest income 150,000 150,000 389,986 239.986 260 Lease - Huntington Driftwood 96,000 96,000 96,000 i00 Rentals - land 25,000 25,000 25,127 127 101 Rentals - park buildings 20,000 20,000 23,750 3.750 119 Rentals - pier and concessions 40,000 '40,000 4s,41:1 3,441 109 Rentals - beach and concessions 135,000 U5,000 150,899 15,899 12 city all hells 65,000 u5,000 83,023 18,023 128 1 Royalties and easements 90,000 90,000 82,298 (7,702) 91 Royalties - park 8,000 8,000 622 (7,378) 8 ' Parking lots 450,000 450,000 465,490 15,490 103 Sunset 'vista camper facility 40,000 40,000 42,098 2,098 1C= Sha:mobile rental ] ,DOD 1 ,000 747 (253) 77 1_ Community gardens 500 $00 202 (298) 40 Central Park concessions 10,000 10,000 10,720 720 107 Other 2,500 _ 2,500 809 (1 ,691) 32 Total use of Roney and $1 ,133,000 1 ,133,000 1 ,415,212 282,212 125e � property 13 CIT'n OF HUMINGTON BEACH GENERAL FUND EXHIBIT D, Continued STATEMENT OF R:VENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE: 30, 1978 Excess of Actual Percentage Revenue Over of Original Revised Actual (Under) Estimatp Budget Change Rudoet Revenue Estimate Realized Revenue from Other Agencies Trailer coach license fee 5 105,000 105,000 90,365 (14,635) 86% Alcoholic beverage fee 42,000 42,000 60,397 0,397 144 County lifeguard and maintenance 121 ,100 121 ,100 121 ,148 -t$ 100 Documentary transfer tax 275,000 275,000 330,970 55,970 120 State oil and gas lease 80,o00 80,000 102,186 22,186 128 Federal government 23,038 23,038 - Motor vehicle in lieu 1 ,752,500 i ,792,500 2,059,030 266,530 115 Bagley conservation fund 1 ,000 1 ,000 - 0 ,000) - Joint Powers - Fire 120,000 120,000 148,864 28,1?64 124 Injury leave reimbursements 40,000 40,000 62,290 22,290 156 State mandated cost reimbursements 24,508 24,508 - ) Other 10,000 10,000 53,454 43.454 535 Total revenua from other 2,586,600 2,586,600 3.o76.250 ___JU3a6ig _ its agencies Charges for Current Services Zoning and subdivision 40,000 4o,000 59,507 19,507 149 Sale of reaps and publications 9,000 9,000 6,984 (2,016) 78 Oil well application fees 4,Oo0 4,000 4,537 537 li3 Misc. filing and cert. fees 1 ,000 1 ,000 885 (11 5) $9 Plan check fees 175,000 275,000 219,668 (55,332) 80 Engineering and inspection fees 240,000 240,000 178,084 (61 ,916) 74 Weed abatement 25,G00 25,000 24,805 (195) 99 Special Police services 30,000 30,000 34,344 4,844 116 Recreation fees 179,000 179,000 136,258 (42,742) 76 Recreation contract 93,000 93,000 100,389 7,389 108 Exemption declarations 10,200 10,200 10. 178 (22) 100 Water quality analysis 2,000 2,000 560 (1 ,440) 28 Junior lifeguard program 11 ,400 11 ,400 29,239 17,835 256 Library service 24,000 24,000 25,108 1 ,108 105 Past reimbursement $ 50,000 6o,000 42,915 (17,085) 72% 14 CITY OF HUMUNGTON BEACH GENERAL FUND EXHIBIT 0, Continued .STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR LRDED JUNE 30, 1978 Excess of Actual Percentdge Revenue Over of Original Revised Actual (Under) Estimate, Charges for Current Services, Qudget Change _ Budget Revenue Estimate Realized Continued Adventureland $ 1 ,000 1 ,000 850 ail) 85% Certificate of occupancy fees 10,000 10,000 14,153 4.153 142 Geological review 11000 1 ,C00 75 (925) 8 Special Fee - Engineering 3,000 3,000 6.410 3,410 214 r Summer Day Camp 3,120 3,120 2,315 (805) 74 Other 5,200 5,200 40,418 35,218 777 Total charges for current services 1,026,920 1,026,920 �38,182 l'8$,738) 91 other Revenue !. Sale of property - equipment 20,000 20,000 49,830 29.83:' 249 Sale of merchandise 10,000 10,000 9,206 (794) ^. Oiccovnts earned 5,000 5,000 3,000 (21000) 60 i Special fees - engineering 1 ,000 1 ,000 0 ,000) Special fees - inspection 4,000 4,ow 5,887 1 .987 147 c Other 21000 2,000 31 ,677 29,677 1584 i i Total other revenue 42,000 - 42_1000 g ,6p0 57,'On 237 Total general fend revenue 27,267,398 46,085 27.313,483 28.343 717_ 1 ,530.234 106 Transfers From Other Funds Special Gas Tax Fund 686,000 685,000 697,601 li .661 102 Civic Improvement Fend 1 ,711 ,100 1 ,711 ,100 1 ,711 ,100 100 Traffic Safety Fund 400,000 400,000 504,155 104,155 126 Parking deter Fund 160,000 160,000 148,638 0 1 ,36a) 93 Water utility Fund 37,500 37,500 37,500 IOC Total transfers 2,994,604 - 2,994,600 ,Ogg,a 104,1:54_ 103 ± Total General Fund revenue and transfers $10,261 ,998 46,085 30,308,083 31 ,942..771 __1,_634.638 105% _ See accompanyinS notes to financial statements. 15 CM OF HUNTINGTON M4,C11 GENERAL FUND EXHIBIT E STATEMENT OF APPROPRIATIONS, EXPEND1TURcS AND ENCUMBRANCE; YEAR ENDED JUNE 30, 1978 Encumbrances Total Excess of Approprictions Percentage Outstanding Expenditures and Over (tinder) Expenditures of Appropriations Encumbrances Encumbrances and Encumbrances Used i 256 59,850 7,824 88% 107,252 2,6a t.0 83,663 97 36,487 i ,u;6,065 43,9577 96 17,469 76,957 21 ,020 79 _ 161 ,464 3,797.183 156.504 96 1 ,873 685,875 514,0*18 93 64,602 1 ,305,044 41 ,840 97 48,347 1 ,880,957 151 ,511 93 332.409 5,248,U60 21-3:320 447,231 9,120,735 463,789 91 100,263 4,984,9;4 186,312 96 90,510 8.389,543 421 ,132 95 29,3056 •,032,5?5 112,481 q0 2.430 769,709 �f tl jy7 .�93 _ i 223,169 15.176,821 780,632 95 9,570 876,286 5C:,091 63 3,292 300.IC5 12,615 96 9,353 163,768 10,846 94 - 171 ,296 i9,80 90 65 325 1279 18.377 95 22,280 1 .836,734 567.773_ 76 ` l854,144 23,931`474 1 .968.698 94� t 17 CITY 4F HUNTINGTON 13EACH GENERAL FUND j STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES YEAR ENDED JUNE 30, 1978 Appropriations Expenditures Personal Maintenance Original Revised Services and Capital Budget Chenge Budget Cost Operation Outlay I Less Applied Costs_ Revenue Sharing Fund S - f,17Q� 71174 Total applicd costs 7.170 7.17o Net General Fund S 30,976,571 916,431 31 ,893,002 21 ,4So.841 7,230,695 325,794 t See accompanying „otes to Financial statements. j i t i i f f 18 M OF Het UNGTON BEACH ! GENERAL FU'l0 EXHIBIT E. Continued L STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENC1148RANCES YEAR ENDED .TUNE 30, 1978 s Encumbrances Total Exress of Appropriations Percentage Outstanding Expenditures and Over (Udder) Expenditures of Appropriations i Encu�Mrances Encumbrances and Encumbrances Used (7.170) - (7,170) — 854,144 29.931.474 1 .961.528 94% ' I z- i i 6 i } s 19 CITY OF HUNINNGTON BEACH SPECIAL REVENUE FUNDS COHBiNED BALANCE SHEET .TUNE 30, 1978 Special Civic Equipment Total 0as Tax Improvement Replacement Sewer Assets Cash and term deposits 12,997,552 3.033,368 872,217 500,000 ! ,r10,306 Accounts receivable , net 17,639 12,079 i ,692 Due from other governmental units, net 820,582 54,593 24,515 65 30,851 # Due from other funds 691 ,000 200,000 491 ,000 Prepaid expenses 84,584 84,584 t 14,611 .357 3.087,0061 ! .193,395 00,065 2.133,849 I Liabilities, Reserves and Fund Balance Liabilities: Cash overdraft $ 193.743 Accrued payroll 100,558 Accounts payable 270,215 11 ,7412 Liability i.isurance claims payable 47,473 Workman's corpensation claims payable 2;2,623 Deposits 1 ,547 1 ,035 Due to other funds 491 ,000 Deferred rental income 601 ,321 601 ,321 Total liabilities 1 ,978,480_ 12,757 601 ,321 - _ Encumbrances outstanding 1 ,308,609 46,507 15,836 Reserves: Reserve for future ;nsurance claims 572.049 Other 70,226 iota) reserves 642.275 - - - Fund balance (deficit) Unappropriated 10,505,338 3,028,697 592,074 500,065 2,118,013 Appropriated 176,655 Total fund balance 10.681 ,993 3,028.691 592,074 500.065 2,116,013_ $ 14,611 .357 3.087,96i 1 ,193,395 500,065 2,133,849 20 CITY 0F HUNTINWON BEACH SPECIAL REVENUE FUNDS EXHIBIT F COMBINED BALANCE SHEET JUKE 30, 1973 Park Planned Federal Federal Acquisition Local Reve-nue Manpower Other and Self Traffic Parking Drainage Sharing Grant - Grants Development Insurance Safety deter 2,187,157 6^o,941 2,289,On7 1 ,904,556 3,868 17,634 343,339 128,564 197.388 16,360 7,273 2,208,659 244,280 128,5b4 197,388 . 2�305.367 25,142 168,601 97,389 2,738 371 385 26,781 86,978 18,234 126,115 47,4r'3 272,6�3 491 .rnn 512 491 ,385 26,781 209.502 189,633 126 62.7 32n.462 61 ,531 271,978 36, 49 73,845 802,448 15 31 ,226 39,000 572,049 31 .226 39,000 s77_n a 1 ,447,862 645,521 (117.394) (66.0y0) 1 ,337,292 l ,O19, 9.G 176,655 _ 11624,517 645,5a.1 (ImI94) (66,0903 __.1.:�37,2c _ t nta 7qA - - 1 2 L208,6a9 � 944.284 128 zfiL Mlg7_ AR 367 1 ,911 _829 _ - CITY OF HUNTING ON BEACH SPECIAL REVENUE FUNDS COMBINED STATEMENT OF CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1Q78 A Special Civic Equipment Total Gas Tax improvement Replacement Sewer Fund balance (deficit) at July 1 , 1977 $ 8,785,840 2,591 ,435 302,938 2,)65,444 Additions: Excess (deficiency) of revenues over expenditures and encumbrances 1156,840) (109,864) 289.136 65 (86,661) Cancellation of July 1 , 1977 reserve for encumbrances 1 ,7860 ,796 547,126 39,230 Transfer from general fund 529,529 500,000 Transfer from park acquisition and development fund 58,447 Correction of error )38,841 ; Total fund balance and additions 11 ,243,013 3,028,697 S92,074 SOG%O65 2018,013 Deductions: Transfer to self insurance fund 32,527 Transfer to grant fund 58,447 Transfer to general fund 19,575 Net addition to liability reserve 4r0,472 l Fund balance (deficit) at June 30, 1978 SiO,PiRI ,992 3,028,697 592,074 500,065 2,118,013 ! See accompanying notes to financial statements. 1 i 22 ------ CITY OF UUNTIN(MIN BEACH -�--�-- SPECIAL REVENUE FUNDS EXHIBIT G COMBINED STATEMENT OF CHANGES 1N FUND 84LAUCE • YEAR ENDED JUKE 30, 1978 Park I Planned Federal Federal Acquisition Local Revenue Manpawer Other and Self Traffic Parking Drainage Sharing Grant Grants Development Insurance Safety Meter j 1 . 1 ,272,575 623.707 181 ,108 (688,340) 1 ,770.121 566,852 ' 156,072 (284,629) (304,007) (75.753) (405,186) 763,987 195.870 306,443 5,505 661 ,729 30,804 89 29,929 58,447 _ 138,841 _ 1 ,624,517 645,521 (117,394) 03,988) 1 .395,739 1 .469,769 - 3 32,527 58,447 19.575 450.472 I ,624,517 645,521 (117,394) (66.090) 1,337,292 1,019,297 - - � 1 ' i f � i �3 1 ' CITY OF MUNTINGTON BEAM SPECIAL REVENUE FUNDS EXHIBIT H SPECIAL GAS TAX STATEMENT OF REVENCT., EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 _ Budget _ Actual Original Revised Budget Change Budget Expenditures Encumbrance; Total Revenue: Interest income $ 80,000 80,000 176,573 State tax: Section 2107 686,000 686,000 697.661 Section 2107.5 10,000 10,000 10,000 Section 2106 815,000 815,000 813,566 Total revenue 1 ,591 ,000 11.591 ,000 1,697.800 i Expenditures and encumbrances: Transfer to general fund 686,000 686,000 697,661 6r7,661 Capital outlay: E Traffic signals 45.837 45.837 39,211 2,442 41 ,653 r Street improvements 2,239,893 2,139.893 962,8y9 9.875 972,774 Engineering 6.550 6.550 6,550 6,550 Other 3.717.205 (1,745,153) 1 ,972,052 61 .387 27,639 89,026 1 Total expenditures and encum- brances 4,403,205 547,.27 4,950.332 1,761 .158 46.506 1 .80` 7,664T Deficiency of revenue over expenditures and encumbrances $(2,812,205) (547,127) (3,359,3321 : (t0g,864) 1 See accompanying notes to financial statements. 24 is CITY OF HUNTIINGTO19 BEACH SPECIAL REVENUE FUNDS EXHIBIT la CIVIC IMPROVEMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED .TUNE 30, 1978 + Budget Actual Original Revised Budget __hange Budget Expenditures Encumbrances _Total Revenue: Interest Income $ 30,000 30,000 42,332 Utility taxes: Water 160,000 160,000 18SA SO Gas 475,000 475,000 479,206 Telephone 900,000 900,000 , "2 1 Electricity 1 ,400,OOC 1,400,000 is 5 Sale of surplus land 139,040 Rental income 12,060 Total revenue 2,965,000 _ � 2,965,000 _ 3,254,136 I ' Expenditures and encumbrances: Transfer to general fund 1,711 ,100 1 ,711,100 1,711 ,100 1,711 ,100 j Civic Center lease 854,900 854,900 854,900 854.900 k Library lease 399,000 j99 000 395,000 399,000 Total expenditures and encum- brances 2,965,000 2.96S,000 219 _ _ — 65,000 2,965,000 Excess of revenue over - - 1 expenditures and encumbrances S 2$9,136 1 ( 25a CITY OF HUNTINGTON BEACH --- SPECIAL REVENUE FUNDS EXHIBIT lb EQUIPMENT REPLACEMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actuai Original Revised i - Sudget Change Budget Expenditures Encumbrances Total Revenue i Interest Income S _ 65 Total revenue - - - - - 65 i Expenditures and encumbrances Excess of revenue over expenditures M and encumbrances a - - - 65 See accompanying notes to financial statements. i 1 25b MY OF HUN12NG'TON BF-AC-0 SPECIAL REVENUE FUNDS SEWER FUND STATEMENT OF REVENUE, FXPENDiTURES .AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total { Revenue: Interest incor: $ 75,000 75.000 92,205 Sewer permits 170,003 170,000 102,598 Local assessments 100,000 _ 100,000 68.440 Total revenue 345,C00 345,000 263.243 k Expenditures and encumbrances: j Sunset Reach Sanitary District 691 4,749 5,::40 Pump Statian C improvements 11,762 11,762 11 ,8O6 11,806 Gothard St. im-provenvents 661 601 Sunset Bcach sewage meters 8,467 8,467 8,467 8,467 He: 1/Bolsa Chica sewer 18,526 18,526 18,526 18,526 Sty-wart Street sewer 1 ,573 1 -573 1 ,573 11�13 k Main Street trunk sewer 90,000 (80,300) 10,000 108 25 ;33 Warner Avenue relief sewer 304,324 304,324 '292,237 11 ,061 3C3,298 Beach Blvd. trunk sewer 270,000 (225,422) 44,578 { Kansion Ave. sewer 40,000 40,000 Saybrook lane sewer 21,600 21,600 _ t # Total expenditures and 1 encumbrances 421,600 39,230 460,830 334.069 15,835 349,904 Deficiency of revenue over expenditures and encumbrances $ (76,600) (39,230)_ (1i5,830) (86,661). 1 See accompanying notes to financial statements. 26 _ ii 1 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT K PLANNED LOCAL DRAINAGE FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDSET AND ACTUAL YEAR ENDED .TUNE 30. 1978 Budget Actual Original Revised Budget Chan%e Budget Expenditures Encumbrances Total Revenue: Interest income $ 60,000 60,000 113,973 Local assessments 800,000 800,000 707.874 Total revenue 860.000 860,OOG 826.847 Expenditures and encumbrances: Drainage District #9 85,000 85,000 Drainage District #7G 1 ,250 1 ,250 12,927 12,927 Channel lining s/o Slater 5,000 5,000 385 385 Old Town storm drain, Phase It 500,000 (41,154) 458,846 284,5i6 61 ,456 346,072 Bolsa Chica storm drain 195,870 195,870 199.551 199,551 Harper Channel reconstruction 29,904 29,904 26,765 26,765 Delaware storm drain Phase If 5,000 5,000 75 75 Speer Ave. to Gothard St. 160,000 160,000 Beach Blvd. 60,000 _ 60,000 _ Total expenditures and fi encumbrances 720,000 195,870 915,870 609,244 61 ,531 670.775 Excess (deficiency) of revenue over expenditures and encum- brances S 140,000 (195,870) 55.870 156.072 See accompanying notes to financial statements. . 2� CITY OF HUN77NGTON MACH SPECIAL REVENUE FUNDS EXHIBIT L } . GENERAL REVENUE SNARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR EASED JUNE 30, 1978 ! Budget Actual Original Revised Budget _ Change Budget expenditures Encumbrances Total Revenue: Interest income $ 30,000 30,000 27,341 Federal revenue sharing 1 ,430,000 1 ,430,000 1 .375.231 General revenue sharing-Tole 11 11 .733 Other 1 ,243 Tot.! revenue 11460,000 1 1160,000 1 ,415,548 ! Expenditures and encumbrances: Warner Avenue fire station 40,821 40,821 40,621 40,821 Fire vehicles 151 ,427 (117,955) 33,472 33,420 33,420 Fire equipment 62,752 62,752 43,087 18,648 61 ,735 Fire paramedic equipment 54,321 54,321 40,728 I3,426 54,154 Fire engine 91 ,882 9i,882 31 ,213 60,121 91 ,334 ! Audit fees 2,000 2,000 115GO 1 ,500 Recreation and Parks equipment 54,719 54,719 54.718 54,718 Library materials 75,000 75,000 30,054 44,865 74.919 Huntington Beach Playhouse 50,000 50,000 50,000 50,000 I Public works equipment 96,380 96,380 93,045 3,335 96,380 Parking control equipment 22,000 22,000 20,245 20,245 Newland House landscaping 81942 8,942 5,536 5.536 i . Validation study 55,000 5151000 30,118 14,309 44,427 .lord processing equipment 24,491 24,4B1 23.370 '870 24,240 Automated reporting systec, 75.000 75,000 Police vehicles 390,357 (200,471) 189,886 189,886 189,886 Police radios 86,294 86,234 30,430 39,143 69,573 Heliport MOOD 75,000 9,202 300 9,502 Police equipment 39077 39,177 36,472 347 36,819 Administration equipment 58,468 (48,780) 9,688 61342 6,342 Data Processing equipment 26,213 26,213 25,192 C33 25,825 Central Services equipment 22,567 22,567 21 ,431 S93 22,024 ? Planning vehicle 5,833 0 .533) 11,300 4,095 �- 28 .._.! CITY OF HUM IiGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT L, Continued GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES • BUDGET AND ACTUAL YEAR ENDED JUNE 30. 1978 Budget Actual _ Original Revised Budget Change Budget Expenditures Encumbrances Total Planning equipment 1 ,533 1 ,533 1 ,499 1 ,499 Building vehicles $ 30,807 (807) 30,000 28,663 28,663 City Attorney equipment 825 825 792 792 Harbors and Beaches vehicle 157,480 (114,045) 43.435 37,583 3l,583 Harbors and Beaches building 44,180 44,180 8,945 8,945 1 Harbors and Beaches equipment 1 ,300 1 ,300 1 ,272 1 ,272 Parking meter replacement 68,565 68,565 68,565 68,565 Public works Vehicles 226,972 (66,353) 160,619 103,337 57,210 160,547 Gasoline tank 11 ,583 11 ,583 11 ,583 11 ,583 Storm drain pump repair 20,000 20,000 18,151 18,151 Manhole rehabilitatien 10,000 10,000 9,070 9,070 } Public Works equipment 21 ,585 21 .585 19,694 1 ,265 20,959 E Building equipment 807 807 6 6 City Treasurer equipment 1 ,295 1.295 1 ,217 1 ,217 Shamel Ash Program 218,376 218,376 201 ,642 16,767 218,409 j Anti-Recession Program 109.783 109,783 95.275 146 95,421 Total expenditures and encumbrances 1 ,023,464 920,327 1 ,943,791 1 ,428,199 271 ,978 1 ,700,177 Excess (deficiency) of revenue over expenditures and encum- brances $ 436,536 (920,327) (483,791) (284,629) I e See accompanying notes to financial statements. 29 - CITY OF HUNTINGTON BENCH ! SPECIAL REVENUE FUNDS EXHIBIT M FEDERAL MANPOWER GRAFT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actual Original Revised Budget Change Budget Expenditures Enc=brances Total Revenue: Title I program S 989,000 989,000 300, 125 Title Ii program 742,000 742,000 558,218 Title VI program 687,000 687,000 1 ,638,057 Summer Youth program 71 ,003 Hon-Disadvantaged Summer Youth 4,500 s Manpower Planner 2,'20 �. Other 5 Total revenue 2,418.000 2,418,000 2,574,428 1 Expenditures and encumbrances: CETA Title 1 program. 989,000 (611,965) 377,035 526,665 i1,187 53',852 CETA Title I program 742.000 (39,990) 702,010 455,744 16,678 472,422 CETA Title VI program 687,000 1 ,871 ,610 2,558,610 1 ,850,063 8,584 1 .858,647 Recreation Support 809 809 5,035 5,035 Mon-Disadvantaged Summer Youth 4,479 4,479 Total expenditures and encumbrances 2,418,000 1 ,220,464 3,638,464 2,841 ,986 36,449 2,878,435 ` - Deficiency of revenue over j expenditures and encumbrances $ (I ,220,464) (1 ,220,464) (304.007) 4 t E Se,: accompanying notes to financial statements. 30 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT N OTHER GRANTS FUND f STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES _ - M BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actual Original Revised _ Budget Change Budget Expenditures Encumbrances_ Total Revenue: EDA grant $ 12 1.117 Natioral Science Foundation Circuit Rider 15,000 15,000 8,250 Juvenile Diversion/Treatment 5,000 314,276 319,276 407.601 Y County Rcvenue Sharing 65,222 12,657 77,87° 45,08 dousing and Community Development 1 ,244,000 1 ,244,000 5 EDP. grant - fire station 398.957 Burglary Prevention - county 75,440 LCP grant 4,128 4,128 4,128 SET grant 195,868 195,868 133,449 Bicycle Lane - SB021 36,358 Robber;, Suppression and Apprehension 35,000 35,000 6,750 :3 Other 35,000 35,000 _ - Total revenue 1 ,329,222 596,929 1 .926,151 1 ,872,213 - � 1 t Expenditures and encumbrances: T' EDA grant-Warner Avs. fire station 555,760 555,760 463,051 658 463t709 National Science Foundation Circuit Rider 10,000 56 10,056 19,986 19,986 v Juvenile diversion/Treatment 5,000 543,983 548,983 458,370 9,190 467,560 sA ��- 1 Bike Trails 376,212 376,212 35,628 2,823 38,451 S- dousing and Commnunity Development 1 ,519,000 256,575 1 ,775,575 629,139 45,426 60-4,565 1 Police grants 271 ,028 271 .028 18-1,603 14,524 199, 127 LCP grant 4,128 4,128 18,253 264 18,517 Seniors Outreach 1977 19,096 19,096 16,783 16,783 Seniors Outreach prograin 65,222 51000 70,222 48,308 960 49.268 t ' Other 35,000 35,000 - - - Total expenditures and encumbrances $ 1 ,599,222 2,06E,838 3.666,060 1 ,874,121 73,$45 1 .947,96 31 CITY OF HUNTINGTON BEACH - SPECIAL REVENUE FUNDS EXHIBIT N, Continued OTHER GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 i Budget Actual Original Rev=sed Budget Change Budget Expenditures Encumbrances Total i Deficiency of revenue over expenditures and encumbrances $ (270,000) 0 .469,9W (11739,909) (75,753) i t See accompanying notes to financial statements. r- 31 I --- CITY OF HUNi7NGTON BEACH SPECIAL REVENUE i'UNDS EXHIBIT 0 t PARK ACQUISITION AND DEVELOPMENT FUND I STATEMENT OF REVENUE, EXPENDITURES AND ENCUMOFtANCES • BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actual 0riginai Revised Budget Chan c Budget Expenditures Encumbrances Total Revenue: interest income $ 25,000 25,000 134,591 State of California grant 73,237 Subdivision license fee 750,000 750,000 920,726 Unit ;,:Pt fee 350,000 350,000 _524.077 Total revenue 1 ,125,000 1 ,125.000 1 ,653.531 f ! Expenditures and encumbrances: ' j Park improvements: Ole 7zwn 125,OCO (:5,125) 109,875 109,875 109,675 Sunset Heights 1 ,776 1 ,776 2,326 2,326 f i Col _2nwest Fields 209,413 209,413 156,850 13,464 170,3314 Greer 174 :74 174 174 Hurdy 2,198 2.198 • 958 1 ,240 2,198 Leb, 328 328 - - Perry 11,899 10,899 4.753 35 4,78E Central 48,574 48,574 35,276 9,309 44,585 tuakview 1 ,781 1 ,781 1 .491 30 1 ,521 Sunvi2w 637 637 - - Marina 834,261 834,261 298,696 - 535.522 834.218 College View 10,324 10,324 4,760 35 41?95 Edison 5.529 5,529 25,888 25,888 Huntinnton Community 315.000 - 315,044 - - PI_asant t ;cw 89,702 89,702 76,144 13,557 89.701 Goldenwest and Palm 75,000 75,000 Hawes l00,470 i00.470 74,204• 26,264 i00,468 Taylor 6L,?50 359,038 423:.'QR 257,'447 156.059 413,506 Havenview i019110 10,910 4,751 35 4,786 Robinwood 74,429 74,429 57,344 17,084 74,428 and 107,994 107,994 81 ,122 26,922 108,044 33 CITY OF HUNUNGTON BEACH ----- � EXHIBIT 0 Con, inued SPECIAL REVENUE FUNDS •. _ PARK ACQUISITION AND DEVELOPMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES � BUDGET AND ACTUAL t YEAR ENDED JUNE 30, 1978 Budget Actual Original Revised Budget Changa Budget ExpenOltures Encumbrances Total (C::penditures and encumbrances cunt.) j l Talbert $ 10,481 10,481 4,651 33 4,686 Site #974 100,000 (72,256) 27,744 6 KCP Phase III property 350,000 (350,000) Summerfic?d 70,000 (70,000) Lutheran 10,000 10,000 10.000 10,000 rancho Schcol 19,425 19,425 15,896 15,856 Lamb 10,321 10,321 4,749 35 4,781, Oceanview 5,100 5,100 5,001 5,001 Moffett 70,000 70,000 Recreation centers 20,269 20,269 16,516• 936 17,452 I Bike trails 4,152 4,152 2,265 1 ,886 4,151 Other 605,000 {402,253} 202,747 5,132 5,112 _ Total expenditures and I encumbrances 1 ,784,750 1 ,028,551 2,813.301 1 ,256,269 802,448 2,058 717 Deficiency of revenue over expenditures and encumbrances (655,750) (1 ,028,551) {1 ,688,301) 40 1Er t See acccirpanrsng notes to financial statements. i 34 i . CITY OF HUNnNGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT P SELF INSURANCE FUND , STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: Interest income $ 50,000 50,000 66,276 Compensation premiums: Transfer frG.-n other funds 912,000 912,000 1 ,286,84U Redevelopment Agency 34 Self insurance fund _ 2514 Total revenue 962,000 962,000 1 ,353,404` i Expenditures and encumbrances: Personnel service costs 25,110 25,110 23,449 23,449 Travel costs 675 675 1 ,444 1 ,444 Contractual services: Administrative 18,000 18,000 19.044 19,044 Legal 25,000 25,000 22,842 22,842 Medical 125,000 125,000 264,601 264,601 Insurance 65,000 65,000 164 164 Disability payments: Permanent employees 75,000 75,000 211 ,7i8 211 ,718 4 Temporary employees 10,000 10,000 1,626 1 ,626 1 Permanent disability 20,000 20,000 8,006 8,006 Other 1 ,075 89 1 ,164 1 ,168 15 1 ,183 Liability insurance claims paid 35.340 - 35,340 _ Total expenditures and encumbrances 364,860 _ 89 364,949 589,402 15 = 589.417 E Excess (deficiency) of revenue over expenditures and encum- brances $ 597.140 (89) 597,051 763.987 See accompanying notes to financial statements. I 35 CU Y OF HUNnNGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT Q TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED 3UNE 30, 1978 I Budget _ Actual � Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: Traffic fines S 400,000 400,000 _ 504,155 i Total revenue 400,000 400,OOO 504,155 i Expenditures and encumbrances: Transfer to General Fund 400,000 400,Oe0 504,155 504,155 l_ Excess of revenue over expendi- tures and encumbrances $ - - - t 1 See accompanying notes to financial statements. j- i �.. 36 1 f!f . i CITY OF 1HU1r IINGTON MACH SPECIAL REVENUE FUNDS EXHIBIT R PARKING METER FUND STATEMENT OF REVENUE, EXPENDITURES AND ERCUMBRAIICES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1978 Budget Actual Original Revised Budget Change Budget Expenditures . Encumbrances Fatal Revenue: Parking meters: Commercial S 18,000 16,000 17,632 Residential 12,000 12,000 11 ,968 Pacific Coast Highway 130,000 _ 130,000 119,038 Total revenue 160,000 160,000 148�638 Expendii:ires and encumbrances: Transfer to General Fund 16o,000 160,000 148,638 _ 148,638 Excess of revenue over expendi- tures and encumbrances $ - - - See accompanying notes to financial statements. 37 l OT'li OF HUNnNGTON BEACH DEBT SERVICE FUNDS EXHIBIT S COMBINED BALANCE SHEET JUNE 30, 1978 1955 Water Bond 1970 Park Bond Interest and Interest and Total Redemption Fund Redemption Fund :ts Cash and term deposits S 1 4451 ,447 p 5 7 t Due from other governmental units, net of allowance for delinquent property taxes 7,200 518 6,682 5 58,647 51 ,965 6,682 Liabilities and Fund Balance (Deficit) Liabilities - cash overdraft $ 25,240 25,240 Fund balance (deficit) 33,407 5i ,965 (18,558) $ 58,647 51 .965 6,682 See accompanying notes to financial statements. k i j 38 i L l CITY OF HUMNGTON BEACH DEBT SERVICE FUNDS FXHISIT T COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE YEAR ENDED JUNE 30, 1978 1955 'Water Bond 1570 Park Bond Interest and Interest and l..tal Redemption Fund Redemption Fund Fund balance (deficit) at July 1, 1977 S 39 A6a Revenue: Property taxes 498,477 36,588 461 ,PP,f Interest income 466 h 66 _ Total revenue 498,943 37,054 ,88g Expenditures: , Redemption of matured bonds 200,000 35,000 165,OQ0 ) !nterest on bonds 304.375 2,4s4 301 ,525 Other Total expenditures 504,996 37.544 467,452 Deficiency of revenue over expenditures (6.053) (490) (5.563� Fund balance (deficit) at J:!ne 30, 1978 S 33,407 See. accompanying notes to financial statements. I � I 39 CITY OF NU1!MNGTOh BEACH CAPITAL PROJECTS FUNDS EXHIBIT U COMBINED BALANCE SHEET JUNE 30, 197B Special 1955 Water Capital Bond Assets Total Outlay Constyuction Cash S 52,403 5,093 77,310 $ 82,403 5,093 77,310 Liabilities, Reserves and Fund Balance Encumbrances 5,093 5,093 ! Unappropriated fund balance 77,310 77,310 1 � $ 82,403 5,093 77,310 See accompanying notes to financial statements. a f; 40 MY OF HUN13NGTON BEACH CAPITAL PROJECTS FUNDS EXHIBIT V 1 COMBINED STATEMENT OF REVENUE, EXPENDITURES, ENCUMBRANCES AND FUND BALANCE f YEAR ENDED .TUNE 30, 1978 � Special 1955 Water Capital Bond Total Outlay Construction Fund valance at July 1 , 1977 $ 91 ,864 14,554 77,310 Revenue - - Expenditures and encumbrances __ 14,554 Fund ba.ance at tune 30, 1978 g 77,310 77,310 See accompanying notes to finbncial statements. I I 41 --- CITY OF HUNTINGTON REACH ENTtRPRISE FUNDS EXHIBIT W COMBINED BALANCE SHEET _ JUHE ?D, 1978 Water utility Meadowlark Golf Total Fund Course Fund Assets Cash and term deposits $ 2,960,546 2,894►073 72,473 Accounts receivable, net: Trade 256,708 256,708 j Other 7,598 71598 l Deposits 32,269 32,269 Due from other entities 8.379 8,379 Total current assets 3,271 ,500 3,199,027 72,473 1 Property, plant and equipment, net of allowance for depreciation 25,450,552 22,303,992 3,146,560 Assets restricted as to use - cash with fiscal agent 327.197 327_197 I 1 ' 1 $ 22,049,249 25,830,216 3,21 033 See accompanying notes to financial statements. I 42 CITY OF HUIMMGTON REACH ENTERPRISE FUNDS EXHIM W, continued t comB I NED BALANCE SN.ErT .TUNE 30. 1978 Water utility Meadowlark Golf Total Fund Course Fund iabilities, Reserves Contributions and Retained Earnings (Deficit) i Current liabilities payable from current assets): Accounts payab', S 605.236 605,236 Contracts payable 900 90C Customer deposits 162,798 162,798 Accrued interest payable 46,325 46,325 Accrued expenses 13,069 13,069 Current installment of long term note payable 14,732 14,732 (Note 7 ) Current Installment of bonds payable (Note 6 ) 120,000 120,000 Current liabilities (payable from restricted assets): Natured interest payable 16,370 16,370 Accrued interest payable i5,575 15,575 Total current liabilities _ 99510es 933,948 ,� 2 Long term note payable, net of current installment Note 7 ) 1,917.673 1,917,e73 Bonds payable in future years net of current install- ment jNote 6) —?.175.OGU 2.175,000 Total liabilities 5,087,678 3,108,248 3 ,978..]30 Reserve tar revenue bona retirement 175,252 175,252 - Contributions: In aid of construction 15,121 ,693 15,121,693 From General Fund 1 .35E,932 92.638 1 ,267,324 Total contributions 16,481 &E 15.214.301 1 ,26 _324 I Retained eat'nings (deficit) 7,304.694 7,331.715 (27,G21) $ 29.049,249 25.830,216 3,219,033 �f 1 43 CITY OF HU1Y'i>IPiC1'' IN BEACH t l WA'rR UTILITY i'UND EXHIBIT X STATEMENT OF REVENUE AND EnPENSES YEAR ENDED JINiE s: 1978 ! Operating Revenue: Metered water salas $ 4,248,804 Municipal water sales 133,713 j Fire hydrant rentals 60,161 Acreage fees 39,870 l Tract fees 47,987 New services 162,220 ! Other water services b 815 { Total operating revenue 4.759,570 Operating Expenses: Source of supply S 838,582 Pumping expense 1 ,Do6,889 Dater Lreatment 48,517 Transmission and distribution 4:6,588 Administrative and general 507,850 Contributions to general fund in ties: of taxes --fifix'sas 3,49),961 Depreciation 6 03,28J Total operating expenses 1►,Q95.24 Operating income 664,325 Nonoperating income: ! Interest Income 148:460 Other 192,200 Total nonoperating income _340.660 Total operating and nonoperating income i3Oo4.985 $; Nonoperating Expense Bond interest 94,433 Other 674 Total nonoperating expense 99,103 Net i n comeSt- rmmnanXing nntna to i� iai statements. 44 CITY OF HU)!IMPIGTON BEAC1i WATER UTILITY FUND EXHIBIT Y i STATEMENT OF CHANGE: IN RETAINED EARNINGS YEAR ENDE4 JUHE 30, 1978 Retained earnings at July 1 , 1977, •as previously reported S 6, 143,519 Add: - I Net income 905,882 Decrease in reserve for bond retirement 348,878 Total balance and additions 7,398.279 Less: Transfers to general fund - 1955 Dater Bonds 37,500 Transfers to self insurance fund 29,064 Retained earnings at June 30, 1978 $ 7,331 ,715 See accompanying notes to financial statements. 1 . I �1 45 LJ 4 CITY OF NUNnNG','ON MUM DATER UTILITY FUND EXHIBIT 2 STATEMENT OF CHANCES IN FINANCIAL POSITION YEAR ENDED JIINE 30, 1978 ( f i ' 5ources of Working Capital: Current operations: ( � Net earnings $ 405,882 1 Charges egainst earnings not involving working capital: Depreciation 603.284 Working capital provided from operations 1 ,509,166 Increase in contributions in aid of construction 4,6531441 1 Total working capital provided 6,362,607 Disposition of Working Capital : l Additions to fixed assets 5,353,275 Increase in assets restricte6 as to use - cash with fiscal agent 18,319 Decrease :n reserve for revenue bond retirement 15,996 Transfer to general fund for redemption of 1955 water Fonds 37,5CO Transfer to self insurance fund 29,064 Decrease in lor►g term bonds payable 535,000 Total vnrking capital used 5,989,154 _ {{ Increase in working capital $ 373,453 1 Changes in Components of Working Capite! were as foilows: Increase (decrease) in current assets: Cash and term deposits $ 1 ,022,585 Accounts receivable, trade (net) 80,384 Accounts receivable, other (net) (20,099) Investments (196.305) Due from other entities _ (11089) Total $ 885,476 46 OTY OF HUNnNGTON BEACH WATER UTILITY FUND EXHIBIT Z, continued � i STATEMENT OF CHANGES IN FINANCIAL POSITION � t YEAR ENDED JUKE 30. 1978 Changes in Components of WorkitiS Capital , Continued Decrease (increase) in current liabilities: Accounts payable S 1%438,369} Accrued interest payable 1 .015 Customer deposits 05.360) Accrued payroll 2i .239 Matured interest payable {10.548) Total i512.023) Increase in working capital 373.453 See accompanying notes to financial statements. i i 47 . i ! ! CITY OF H'UN'Ii GTOrl BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT AA STATEMENT OF REVENUE AND EXPENSES YEAR ENDED JUNE 30, 1978 Revenue: Lease revenue $ iSO,Odd Interest intone 8•513 Total revenue 158,513 Expenditures: Interest 135,529 Depreciation 15,760 . t Total expenditures 151 ,289 Net income g 7,224 i � See accampanving notes to financial statements. 1 : j� • 48 I — . l CITY OF HUNI"NGTON BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT 98 STATEMENT OF CHANGES IN RETAINED DEFICIT { YEAR ENDED JUNE 30, 197a I Retained daficit at July 1 , 1977 $ (34,245) -� Add: Net income 7,224 Retained jeficit at June 30, 1978 (27,020 See accompanying rotes to financial statements. I f CITY OF HUN71NIGTONI SEAM { MIEAD0VLt.RK SOLI: COURSE FUND EXHIBIT CC STATEHEh'T OF CHARGES IN FINANCIAL POSITION ' ff YEAR F!iDED 1UYE 30, 1978 i � Sources of Working Capital: Net incom- S 7,224 1 Charges against net income not involving working capital : Depreciation 15.76O jWorking capital prokided from operations 22 984 Disposition of Working Capital : Payment of principal portion of notes payable l._____'`:. ._ 3 Increase in working capital S 8,252 Changes in the components of working capital were as follows: Increase in current assets- cash $ 8,:13 i I (Increase) Decrease in-current liabilities: Increase in current portion of notes payable (964) f Decrease in accrued interest payable 703 l Total increase in current llaW ittes (260 Increase in working capital $ 8,252 Seo accompanying notes to financial statements. 54 ,1 CITY OF Hi: MIGTON BEACH TRUST AND AGEI►. "UNDS EXHIBIT DD COMBINED BALANCE SHEET JUHE 20, 1978 i Employee Trust Deferred t rip rovement ,Total _ Fund Compensation Act Assets Cash and term deposits $ 963,513 203.673 742,142 17,696 Accounts receivable 23.975 23,975 Notes receivable 76,101 76,101 Total assets $ 1 ,063,589 203,673 842,218 17,693 Liabilities and Fund Balance Liabilities: Refundable deposits 203,'73 203,673 Bond principal and interest payable 17,698 _ 17,698 Total liabilities 221,371 203,673 - 17,698 Fund balance 842,218 - $42,21a $ 1 ,063.589 203,673 842,218 17,698 See accompanying notes to financial statements. # 51 t I QTY OF H1UNTINGTON BEACH TRUST AND AGENCY FUNDS EAHIBIT EE COMBINED STATEKENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, !978 • Employee Trust Deferred Improvem. nt Total Fund _ Compensation Act IFund balance at July 1 , 1977 $ 572,881 - 572,881 Add: t Interest earned 64,017 64,017 Contributions received 2D5.355 _ 105.355 Total additions and fund balance $ 342,253 - 842,253 Less: Paid to participants in employee deferred compensation plan 35 35 Total deductions 35 35 Fund balance at June 30, 1978 $ 842,218 - _ b-ce,218 i See accompanying notes to financial statements. s � l + e._. _.....��, 52 r � CITY OF HUMTINGTON BEACH -- NOTES TO FINAK1AL STATEMENTS JUNE 30, 1978 Note I Summary of significant Accounting Policies Descrlptior: of Funds and Account Groups i The basic accounting and reporting entry in government is a "eund." A fund is defined as ar. independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities .which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. Because a clear distinction should be made between the accounts y relating to current assets and liabilities and those related to fixed assets and lone, term iizSilities, a self balancing "group of accounts" is utilized. The types of funds and account groups used and their respective d2 finitions are as fellows: j Fund a) The General Furs; - to account the :ity's ordinary operations which are financed from taxes and other general revenues and to account for all financial transactions not properly accounted for in another type of fund. �1 Special Revenue Funds - to account for the proceeds from specific revenue sources (other thin spec al assessments) or to finance specifiea activities as required W law or administrative regulation. c) Debt Service Funds - to account for the asyment of interest and principal of general obligation long term debt. d) Capital Project Funds - to account for the receipt and disbursement of monies used for the Icquisi- :ion of capltal facilities other than those financed by special assessment and enterprise funds. e) Enterprise Funds - to account for the financing of services to the general public where all or most of the costs involved are financed through charges by users of such services. • f) Trust and Agency Funds - to account for resources held by a governmental unit ss trustee or agent for individuals, private organizations, and other governmental units. } + Account r3roups ; a) feneral Fixed Assets Crow of Accounts - to account for the general fixed assets of the City other than those accounted for in the enterprise L- trust funds. b) General Long Term Debt Group of Acc•. -_-%ts - to account for the general obligation long term debt of tka City.. -� 53 . 1 CITY OF HUNMGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued ` r Note i Summary of Significant Accountinc_ Policies, Continued_ Basis of Accounting I � The accrual basis of accounting is followed fer enterprise, capital project, and trust and agency funds. The accrual basis of accounting is defined as that basis of accour hig under which revenues a m recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received, not withstanding that the receipt of the revenue or the payment of the expenditures may take place, in whole or in part, in another accounting period. The modified accrual basis of accounting is followed for thr: general , special revenue, and debt service funds. The .modified accrual basis of accoun►.ing is defined as that basis of account;ng under which expenditures other than accrued interest on general long-tern debt are recorded at the tine liabilities are incurred and revenues are recorded when received in cash, except for material and/or available revenues :ihich should be accrued to reflect properly the taxes levied and the revenues earned. I eves tnxn is Investments are stated at cost which approximate market value. Investments generally consist of Federal Government-backed securities, bankers acceptances and municipal securities (Note 5). Fixed assets The general fixed assets of the City, those fixed assets which are not accounted for in the enterprise funds, are accounted for in a separate self-balancing group of accounts described as the "General Fixed Assets Group of Accounts." General fixed assets are not depreciated. General fixed assets acquired by the City prior to July 1 , 1973 and during 1577 and 1978 are not recorded in the City's accounting records. General fixed assets, except municipal improvements outer than buildings acquired from July 1 , 1973 through June 30, 1976 are recorded at cost in the City's accounting records. The accounts of the water utility fund include $27,254,083 of property and equipment, less 54,329,069 �- accumulated depreciation. Of these assets, approximately $8,373,000 represent water service assets which have been donated to the City by independent contractors prior to June 30, 1968, Such donated assets have been recorded at values estimated by City personnel. During 1977 and 1978 the City conducted an inventory _ of fixed assets of the water utility fund. This inventory resulted in the recording of approximately 51,834,000 in water service assets that were previously unrecorded. The City's evaluation of its water utility fixed assets is still continuing. Depreciation of the fixed assets of the Water Utility Fund is charged to operations using the straight-line method on the estimated useful life of an asset within i particular group of assets as follows: 54 _ OTY OF HUMINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 1 Summary of Significant Accounting Policies. Continued • Asset Group Life Production and pumping plant 15-40 years Transmission and distribution plant 25-75 years General plant 10-30 years Transportation equipment 6-10 years General Long Term Debt_ General long term debt, except for enterprise funds, is not carried with the current liabilities of a fund, but rather is recorded in a separate self-balancing group of accounts described as the "General Long Term Debt Group of Accounts." (Notes 2, 3, and 6) . Budgetary Control Budgetary control is an essential element in governmental accounting and reporting. The City adopts an annual budget and utilizes an "encumbrance system." Under this procedure, obligations or commit- ments in the form of purchase orders or contracts which are chargeable to an appropriation are recorded as restrictions of fund balance through a reserve account. Vacation and Sick Leave It is the policy of the City to record the cost of vacation and sick leave when paid. At June 30, 1978, the total unrecorded liability for vacation and sick leave accumulated by City employees was approximately $1,852,900. Pension Plan Substantially all City employees partici-)ate :n the Public Employees Retirement System administered by the State of California. This retirement plan covers substantially all City employees. The total pension ex- pense recognized by the City for the fiscal year ended June 30, 1978 was approximately $2,lf:j,800. At June 3J, i1978, the excess of vested benefits over available assets, if any, was considered to be ins .gnificant. j Deferred Employee Compensation The City has initiated a deferred compensation plan whereby eligible City employees may elect M defer a portion of their earnings for Federal income tax purposes. The deferred compensation plan has been i 55 GIVE OF HUNTINGTON BEACH NOTES TO F MANCIAL STATEMENTS, Continued Note I Summary of Significant Accounting Policies, Continued approved by the internal Revenue Service (Service) . The Service stipulated in its approval that legal title the compensation funds, interest sti rest with the • For purposes of financial statement these deferredeompenaon fundahave beentreatedas a separate trust fund of the City. Description of Leasing Arrangements tiThe City has entered into long term sublease agreements with the Huntington Beach Public Facilities Cor- poration for the rental of the Civic Center complex and the Central Library. Both sublease agreements provide that the ownership of thn facilities, constructed on land owned by the City, will be transferred to the City, at no additional cost, upon completion of the term of the sublease. Proper accounting under such circumstances requires that such lease be accounted for under the financing method. Under the financing method, the transaction is regarded as an installment purchase, whereby an asset and an associated long term liability are established. Annual rental payments are treated as reductions of a long term liability. Note 2 Equipment Sale - Leaseback Agreements 'rhe City has entered into two sale-leaseback agreements with outside parties for the lease of computer peripheral equipment. These agreements are for less than five years duration and represent financial arrangements that, in essence, are considerer' installment purchases. I At June 30, 1978: the City owed the lessors approximately $105,000. annual payments under the agreements aggregate imely beenl0recorded including ilitiesinterest. the "General LongrTermSDebtf:'ndrGeneralaFixediAssetss of the Cityy and and have t Groups of Accounts." Dote 3 Leases iThe City has entered into two noncancellable lease and sublease agreements with the Huntington Beach ` Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the Central Library. Under both agreements, the City Is to pay all taxes, insurance, administrative and maintenance costs. Title to the site improvements will pass to the City at the termination of the )cases. The City has determined that such teases are financing leases. Under the financing method a transaction is regarded as an installment purchase, whereby an asset and related liability are recorded. Annual rental - payments are treated as reductions of the liability. Advance rentals from the Corporation received by l the City for lease of the site upon which the facilities ere constructed are recorded as deferred rental income in the Civic Improvement Fund and are being amortized over the terms of the sublease. A description of each lease agreement is as follows: 56 CITY OF HUNIINGTON BEACH . I NOTES TO FINANCIAL STATEMENTS, Continued Mote 3 Leases, Continued a) Civic Center The City has entered into a noncancellable lease and subleasi agreement with the Corporation for the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation for '$350,000 advance rental. The term of the lease 1s from January 15. 1976 to one week after the termination of the sublease. The Corporation has subleased the civic cen . .r site and improvements to the City for $854,900 annual base rental . The sublease commenced July 1, 1974 for a term of •30 years or until all debts of the Corporation related to the civic center have been discharged, whichever comes first. b) Central Library The City has entered into a noncancellable lease and sublease agreement with the Corporatioi, for the Central Library. The City has leased the site to the Corporation for $300.000 advance rental. The term of the lease is from September 1 , 1972 to one week after termination of the sublease. l The Corporation has subleased the librarysite and improvements mprovements to the City for $399.000 annual base rental. The sublease commenced February 15, 1957 for a term of•30 years cr until al; debts of th- Corporation related to the library have been discharged, whichever comes first. Note 4 Commitments The City has entered into the foilowing agreements: 1 a) In 1967, the City entered into an agreement for the lease of water storage capacity in the San Joaquin Reservoir for a term of 50 years at an annual rental of $100,000 for the first ten years, $95,000 per year for the next ten years, '$90,Ci!0 per year for the next seven years, and $-10,000 per year through the remaining term of the lease. The City will hold no ownership interest in the San Joaquin Reservoir at the conclusion of the lease. b) In 1969, the City entered into an agreement with the Huntington Beach Parking Aut:rarity for the lease of certain parking facilities. The term of the lease is'24 years or until all of the Parking Authority's 1968 revenue bonds have Lien retired. Annual base rental payments under the lease agree- ment are $170,050. Ownership of the parking facilit, will always remain with the Parking Authority. c) In June, 1974, the City leased a park site from the Ocean View School District for a term of five ` years. The City may cancel the agreement at the end of any budgetary near. !f the City makes all lease payments, title to the property will pass to the City. Annua' rentals under the agreement aggregate .$64,875. Due to its insignificance, the City has elected not to capitalize this finansing lease. 57 CITY OF HUNTINGTION BEACH WITES TO FINANCIAL STATEMENTS, Continued !! Note 4 Commitments, Continued r ' Minimum aggregate rental commitments under the above agreements are as follows: Year Amount '1979 S 265,050 1980 265,050 1981 265,050 1982 265,050 1983-1987 1 ,320,250 1988-1992 1 ,300,250 1993-1997 300,500 Remainder $ 190,000 The City has entered into agreement with contractors which generally provide for possible reimburse- ment to the contractors, of costs incurred in constructing water, sewer, and d raina-e facilities. i The extent of such reimbursement shall generally be limited to subsequent fees which are collected from other users of the facilities which are not used to provide improvement to the facilities. The City follows the practice of recognizing fees as revenue as they are collected and charges sub- sequent payments to expenditures as they are made. i Vr^te 5 Investments in Marketable Securities A summary of the City's marketable securities at June 30,* 1978 is as follows: � A pprox. Interest Principal Market Description Rate Maturity Amount Cost Value t Genera) Fund Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds, First and Second Issue 5.55% 1985-1998 $ 10,000 8,721 9,000 City of Hua tington Beach t970 Park Bonds 6.0 1980 25,000 24,509 23,0G0 Huntington Beach Parking Authority 1968 Parking Revenue Bonds 5-5.25 1984-1998 100,000 85,302 , 9 000 Total Investments $135,000 118,53k 12 5,090 '�'_ 58 CITY OF HUNnNGTON BEACH �4 NOTES TO FINANCIAL STATEMENTS, Continued Mote 6 Outstanding indebtedness A summary of bonded indebtedness outstanding as of ,tune 30, 1978 is as follows: Bonds Bands Matured Bonds Date of Years of Rate of Amount of Outstanding During Outstanding Issue Bonds Maturity Interest Orig. Issue June ;,0, 1977 Year June 30, 1978 General Obligation Bonder.. Debt Group I 1955 dater Bond 1955 1956-1962 5.50% S n 30,OOO -0- -0- -0- 1963-1976 3.00 490,000 -0- -a- -0- 1977-1980 2.00 140,000 140.000 35,000 105,000 Total 1955 Water Bond 860,000 140,^v.0 35,00 105,000 1970 Park Bond 1970 1971-1972 5.00 225,000 -C- -0- -0- 1973-1974 5.25 255,000 -0- -0- -0- 1975-1977 5.50 440,000 -0- -0- -0- 1978-1983 5.75 1,150,000 1 ,15G,000 165,000 985,000 1984-1995 6.00 3,930,000 3,930,000 -0- 3,930,000 Total 1970 Park Bond 6,ODO.000 5 080•OGO i6S 000 4 l_ 5 O O0 Total general obligation bo^ded debt $ 6,860,000 5.220,0000 20010010 5,020.000 59 L CITY OF HUNTINGTON BEACH — NOTES TO FINANCIAL STATEMENTS, Continued Note Ii Outstanding 1, q ndebtedness. Continued f Bonds Matured- Bonds Purchased Bonds Date of Years of Rate of Amount of Outstanding During Outstanding Issue Bonds Maturity Interest Orig. issue June 30,1977 Year June 302 1978 Revenue Bonds Water Utility Fund - 1963 Water Revenue Bond 1963 1963-1974 4.75% $ 700,000 -0- -0- •-0- 1975-1978 3.25 460.000 240,000 120,000 120,000 ( 1979-1981 3.30 400,000 400,000 -0- 400,000 1"82. 1983 3.40 300,000 300,000 5,000 295,000 1984-1993 5.50 1,890,000 1,890,0-o0 410,000 11480,000 Total Revenue Bonds (a) (b) 3,750,000 2,830.000 535_,0`_ 2,295,000 'Total bands payable $ 10,610,_0.00 8,050.000 735,000 7.315,Q00 (a) The water revenue bonds do not represent a general liability of the City of Huntington Beach. (b) At June 30, 1978, there were $1,950,000 authorized but unused 1963 water revenue bonds. i Note 7 Meadowlark Golt Course Note Payable In 1575, the City entered into an agreement to purchase the Meadowlark Golf Course from an independent party for a total purchase price of $3,200,000. Terms of the agreement called for an Initial down payment of $ 928,000 with the remaining $2,272,000 being In the form of long-termn'7% note. At June 30, 1978 the balance of the note was $1,932,405. A schedule of earl principal and interest pay- ments is as follows: . yearly p Year Amount 1979-2001 S 150,000 2002-2008 200,000 2009 60 S 115,703 � . UTY OF HUN77NGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 7, Meadowlark Golf Course Rote Payable, Continued In connection with the above purchase, the City has leased the golf course operation to an outside party for 34 years at a minimum lease income of $150,000 annually through 2007 and a percentage of incom based upon gross revenues for the years 2008 and 2009. As part of the initial payment of $928,000, the County of Orange contributed $600 000 u guarantee to use general City funds when and if necessary to ensure that Meadowlark Golf Course the C will sbe maintained as open space. The note payable is collaterali ,ed by future revenues and does not represent a general obligation of the City. Note 8 L=tigation 1 At June 30, 1978, the City was defendant in several legal actions arising in the normal course of busi- ness. In several suits, the City was insured for public liabili!'v and property damage through various insurance policies aggregating up to $10:000,000 coverage for each occurrence. In the remainder of the suits, the City is self-insured. In &e opinion of the City Attorney, the actual impact to the City upon reseiutlon of the outstanding claims is insignificant and the reserve for self-insurance is ade- quate. 6 1 1 " CITY OF HUN31NGT4N BEACH STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPEhTY TAXES SCHEDULE 1 l July 1 , 1968 through June 30, 1978 Fines Use of From Charges for Fiscal Other Licenses b b For- Honey b Other Current Other year _ Taxes Permits features Property Agencies Services Revenue I 1968 $ 1 .468,851 `-'??.740 75,194 249,186 849,395 43n,440 31 ,519 1969 1 ,938,841 742.853 65,007' 295,504 1 ,053,9i7 81b,856 40,507 1970 2,256,982 809,773 79,169 541 ,283 1,101 ,752 774,850 159,339 1971 2.569,358 772,347 90097 510,099 1,332,432 348,834 51 ,129 1972 3,115,977 1 ,269,922 109,851 596.857 1.373,140 409,013 59,200 19?3 3,800:728 1 ,997,105 126,651 651 ,746 1 .589,742 701,760 112,172 19 4 4,386,433 1,834,580 152,769 682,395 1,830,265 615,379 32,325 i 1975 723,955 2,236,292 125,698 767.233 1,774,192 639,064 41 .427 1976 5,722,103 2,588,932 135,216 907.470 2,040,207 325,912 49,277 1977 6►785.656 2,817,209 214,808 1 .050.938 2,567,992 42 6 9 ,7 0 46,714 1978 $ 7,953,048 2,653029 216,362 1 ,415,212 _ 3,n76,250 938,182 9q.600 t � 1 i 1 � I i i j 62 ' 1 CM, ?HUNTINGTON BEACH STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND SCHEDULE it July 1, 1968 through .tune 30, 1979 Fiscal Administrative Services Community Services Public Safety Services ,Year Expenditures Encumbrances Expend Lures Encumbrances Expenditures— Encumbrances 1968 $ 1,112,929 2,585 2.263,295 84,930 3.035,672 IR,155 i 1969 1,730,483 1 ,767 2,522,111 89,304 3,820,166 65,171 t 1970 2,346,300 156,241 3,806,162 206,532 4,728,247 198,844 1971 2,328,085 630 4,016,357 228,289 5,410,562 41 ,583 1972 1,676,714 12,781 4,736,550 105,091 6,966,277 84,117 1973 1 ,330,792 16,811 5,9?8,271 1,244,452 8,489,612 153,6:0 1974 1,494,073 6,60). 6,601,075 .110 9.541 ,847 21 ,679 1975 2,802,270 14,501 6,977,233 190,358 10,858,325 117,556644 11976 977 2.664;476 153 2 1 7:7 7,535 435,89H 14.071•3296 317,81 153,201 T,7 • 1978 S 3.635.719 161 :464 8,673.505 447,231 14,-053.652 223,169 i 63 CITY OP HUMNGTON REACH of STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND, CONTINUED SCHEDULE 11 , July 1 , 1968 through June 30, 1978 Contlnue6 . Surannr� ter i ne Total G ner 1 Fun Expenditures Encumbrances Expenditures Encumbrances S 293,751 1,198 6,705,647 106,86 i :55,440 7,139 8,428,200 163,381 444,095 3.879 11,324,803 565,496 544,078 4,456 12,299,082 274,957 724,723 8,283 14, 104,264 210,272 { 720,979 13,158 16,519,654 1 ,428,031 f 906,900 5,966 18,543,895 70►356 813,411 5,36' 21 ,451,239 327.790 1 .247,564 7,616 23,328,618 662,483 2;4933, 48 47,288 26,979,687 954,018 S 1 ,3l4 22,28o 29.473.330 854,144 1 1 1 i :� 64 CITY OF HUNTiNGT0N BEACH STATEMENT OF ASSESSED VALE, DEBT LIMIT AND SCHEDULE Ill RATIO OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND PER CAPITA .July 1 , 1968 through June 30, 1978 $ Bonded -� Debt to Fiscal Estlmdted Totai Legal Debt Total General Legal Assessed Bonded Debt Year Population Assessed Value `Limit (15%) - Bonded Debt- Debt Margin Value -Per Capita ' 1968 94,377 $ 273,265,300 40,989,795 455,OOG 40,534.795 .17 4.82 1969 104,124 284,033,290 42,604,994 420,000 42,184,994 .15 4.03 1 1970 115,960 293,272.790 43,990,919 6,385,000 37,605,915 2.18 55.06 } 1971 122,976 339,783►M 50,967,588 1,240.000 44,727,588 1.84 50.74 1972 129,992 370,230,779 55,534,617 6,090,000 49,444,617 1.64 46.85 1973 143.325 410,283,199 61 ,542,480 5193O.000 55,612,480 1.45 41.37 1974 143,636 442,271,658 66,340,749 5,765,000 60.575,749 1 .30 40.14 1975 146,400 529.973.310 79.495.997 51590,000 73,905,997 1.05 38.18 1 197E 151,503 5BO,623,45O 87.093,518 5,410,000 81 ,683,518 .93 35.71 1977 157,800 710,079,235 106,511,885 5,220,000 1012291,885 .74 33.08 f 1978 161 ,200 $ 854,321 ,745 128,148,262. • •5,020,000 123,128.262 .59 31.14 1 i 1 65 1 l.. CITY OF HUNG` NGTOti BEAC11 STATEMENT OF TAX DELtNQUENCiES AND IMPOUNDS SCHEDULE 1Y JW y 1 , 1968 through .tune 30, 1978 Secure -d Taxe.. Unsecured Taxes Fiscal Tax Total Delinquency Total Delinauency Year Rate Total Levy Collections Amount Percent 'Total Levy Zollectiom Amount Percent 1m ounds 1968 > 1.33 3,471 ,790 3,314.279 51 ,78) ..49% 168,867 167.923 944 .5c% 1a5,73a 1969 1 .45 3►898,311 3,763,889 -.1,777 1 .07 204,032 201 ,964 2,068 1.01 92,645 1970 1.45 4,179.522 4,015,842 50,787 1.22 252,136 250,534 1 ,602 .63 112,893 1971 1.45 4,433,058 94,3ib,i56 62,315 1 .41 291 ,311 288,965 2,346 .80 54.587 19-2 1.62 5,565,713 5,395,846 59.651 1 .07 432,025 401 ,297 41628 1 .r7 136,322 1973 1.62 6,Z':9,372 6,034,111 51 ,276 .82 397.216 391,186 6,030 1 .51 13c,985 1974 1.62 6,703,620 6.499,009 66,654 .99 461 .18i 456,296 4,885 !.06 137,957 1975 1.62 8,099,022 7,844,596 74,987 .93 486,545 484,124 11 ,169 2.30 179,439 1576 1.62 8,852,049 8,587,784 82,E22 .93 -745.344 516,539 28,798 4.36 186,648 1977 1.62 9,982,983 9.844,450 116,794 117 549,994 538,370 6,791 1.23 328,4L'1 1978 $ 1 .55 12,563,144 12,336,834 186,310 1:49% 742,053 711,519 30,534 4.119 204,W3 1 . i is 66 CITY OF HUNTINGTON BEACH -- STATEMENT OF FUTURE GENERAL. OBLIGATION BONDED DEBT REQUIREME3TS BY YEAR SCHEDULE V BASED ON BONDED DEBT JUNE 30, 1978 Fiscal Year Principal Interest Total - 1979 $ 210,000 294,07 504,187 1980 220,000 283,415 503,425 198) 230,000 272,088 502,088 ►� 1982 210,000 260,525 00,525 1983 220,000 248,450 468,450 1984 235,000 235,600 470,800 1985 245,000 221 ,700 466 XG 1986 260,000 207,000 467,000 ,987 280,000 191 AGG 471,400 1988 295,000 174,6u4 469.600 1989 310,000 156,900 466,900 *50 330,000 138,100 468,300 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 445,000 26,700 471 ,700 Total 5,020,000, 3 05 8 0 , 3.975 ` The 1955 Water General Obligation Bonds wlll be totally paid in August, 1980. 67 1 -- CITY OF HUNTINGTON MC11 - STATEMENT OF FUTURE ;CATER REVENUE eO%D REQUIREMENTS BY YEAR SCHEDULE VI BASED ON OUTSTANDING DEBT JUNE 30, 1978 Fiscal Ycar Principal Interest Total 1979 S 120,000 91 ,SOO 211 ,500 1980 130,000 87,405 217,405 1981 130,000 83,115 213,115 '982 140,000 78,66o 2?8,66o 1983 145,000 71 ,340 216,340 1984 150,000 68,700 218,700 1985 160,000 65,350 225,350 1986 160,000 59,350 219,350 1987 170.000 53,250 223,250 1988 180.000 47.030 227,030 1989 180,000 40,000 220,000 4 1990 190,000 33,075 223,075 1991 200,000 26,250 226,250 1992 210,000 !9.075 229,075 1993 30,000 1 ,575 31,575 E Total $ 2,295,000 5225.675 3.120.675 � ' 58 M � 1{ 4 CITY OF IIUN71NGTON BEACH HUNTINGTON eEACH PUBLIC FACILITIES CORPORATION (a) SCHEDULE ► II STATEMENT OF BONDED DEBT YEAR ENDED JUNE 30, 1978ti 4_ - _-r: Date Years Bonds Bonds Bonds t of cf Rate of Original Outstanding Matured Outstandingf-; -� Description Bonds Maturity Interest Issue July 1 , 177 During Year June 30, ig78 Civic Centel Jan. , 1972 1975-1982 7.00% $ 2,010,000 1 ,370,000 240,000 1 ,130,000 q= � Leasehold Mort- 1983 5.70 330,000 330,000 -0- 330,000 t gage Bonds, 1984-1996 5.50 7,040,000 7,040,000 -0- ;,OLO,000 First Issue 1997-1998 5.00 _ 1 ,720,000 1 ,720,000 -0- 1 ,720,000 Total 11,100,000 10,460,000 240,000 _ :0,220,000 Central Library Feb. , 1972 1975-1983 7.00$ � 1 ,220,000 I ,G05,000 120,000 885,000 � ' - -- Leasehold Mort- 1984 5.50 160,000 180,000 -0- 180,000 gage Bonds, 1985 5.40 190,000 190,000 -0- 190,000 Second Issue 198E-1988 5.50 640,000 640,OCO -0- 640,000 1989-1991 5.60 770,000 770,000 -0- 770,G00 t=tom 1992 5.70 29G.000 290,000 -0- 290,000 1993-1995 5.75 965,000 965,000 -0- 9051000 ~ 1996-1997 5.00 745,000 745,000 -0- 745.000 Total 51000,000 4.785,000 120,000 4. F 5.000 3� ti Total bonded debt S16, ioo,000 15,245.000 __360.000 14.885.coo (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporation is an independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. fig aW OF HUNMIGTON MACH HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION SCHEDULE VIII STATFHENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT (a) • JUNE 30, 197 g Fiscal Civic Center estup Library Icc a Tnta1 Year Principal Interest, Total Principal Interest Total Principal i-.terest Total 1979 $ 260,000 571 ,110 831,110 130,000 265,867 395.867 390,000 836.977 1 ,226,977 1980 270,000 552,910 822,910 135,000 256,592 391 .502 405,000 809,502 1 ,214,502 1981 290,000 534,010 824,010 140,000 246,967 386,967 430,000 780,977 1 ,210,977 !982 310,000 513.710 823,710 150,000 236,817 386,817 460,ODo 750,527 1 ,210,527 t 1983 330,000 492,010 822,010 160,000 225.967 385,967 490,000 717,977 1 ,207,977 l[ 1984 36o,oeo 473,200 833,200 170,000 214,417 384,417 530,000 687,617 1 ,217,617 1985 380,000 453,400 833,400 180,000 203,157 383,157 560,000 656,557 1 ,216,557 1986 400,000 432,500 832,500 190,000 192,717 382,717 590,000 625,217 1 ,215,217 ? 1987 430,000 410,500 840,500 200,000 182,087 382,087 630,000 592,587 1 ,222,587 _ 1988 460,000 386,850 846,850 210,000 170,812 380,812 670,000 557,662 1 ,227,662 1909 1190,000 361 ,550 851,550 230,000 158,712 388,712 720,000 520,262 1 ,240,262 , I 1990 530,000 334,600 864,600 240,000 745,667 385,667 770,000 480,267 1 ,250,267, 1991 560,000 305,450 865,450 260,000 131 ,667 391 ,667 820,000 437. 117 1 ,257, 117 1992 600,000 274,69 874,650 270,000 116,827 386,827 870,000 391 ,477 1 ,261 ,477 1993 640,000 241 ,650 • 881 ,650 240,000 101,002 391,002 930,000 342,652 1 ,272,652 1 1994 680,000 206,450 886,450 305,000 83,968 388,968 985,000 290,418 1 ,275,418 1995 730,000 169,050 899,050 320,000 66,OOU 385,000 1 ,050,000 235,050 1 ,285,050 1996 780,000 128,900 908,900 340,000 47,025 387,025 1 ,120,n00 175,925 1 ,295,925 1997 8.0,000 86,000 916,000 360,000 28,250 388.250 1 ,190,000 114,250 1 ,3o4,250 1998 890,000 44,500 934,500 385,000 9,625 394,625 1 ,275,000 54,125 1 ,329,125 Total $1o,220,000 6,973�000 17,193,000 4,665,000 3 08. 4,143 7,749,14. 14,885,000 10,0{7,143 24,942.141 Principal Due: January September Interest Dose: July and uanuary September and March (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Cerporatlop is an Independent entity. Accordingly, the obligations of the Public Facilities Corporation do "t constitute an obligation of the City. 70 _3 CITY OF HUNTINGTON BEAM! PARKING AUTiiGRI TY OF THE C I TY SCHEDULE IX OF HUNTINGTON BEACH STATEMENT OF BONDED DEBT (�} JUNE 50, 1973 i I Date Years Bonds Bonds Bands of of Rate of original Outstanding Matured Outstanding Description Bonds Maturity inter+-st Issue July 1 , 1977 During Year .tune 30, 1978 1968 Parking Sept. , 1968 1970-1972 6.00% y 1501,300 -0- -0- Revenue Bonds 1973-1979 4.75 470,000 225,000 70,000 155,000 1980-1985 5.00 570,000 570,000 -0- 570,000 1986-1993 5.25 1 ,110,300 11110,000 _O 11110,000 Total $ 2,300,000 1 ,905,000 70,000 1 ,835,000 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT JUNE 301, 1978 Fiscal Year Principal Intnrest Total 1979 $ 75,000 a2,356 167.356 i 1980 80,000 88,675 168.675 1981 85,000 84,650 169,650 1982 85,000 8o,400 165,400 1983 90,000 75,025 166,025 1984 95,000 71 ,400 166,40o 1985 105,000 66,400 171,4oa 1586 110.000 61 ,025 171,025 1987 115,000 55,256 170,256 1988 120:.000 4.9,088 169,088 1989 125,000 42,656 167,656 1990 135,000 35,831 170,831 ' 1991 140,000 28,613 1G8,613 1992 150,000 21,000 171 ,OnO 1993 160,000 12,863 172,863 1994 165,000 4,331 169,331 Total $_1&35,000 8 0,564 2,70S.S69 (a) The above schedules have been included here!n for In orresational purposes only. The Parking Auchority is an indepen- dent entity. Accordingly, Its obligations am nct obligations of the City. �, HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION FINANCIAL,STATEMENTS JUNE 30,1978 (With Accountants'Report Thereon) t i PEAT. MAM ICK.MITCHELL CO. CERTIFIED PUBLIC ACCOUNTA\7S ! 000 NEWMT.T CEXTLR DRIVE ` NEWPOUT SELk M.CALIMRNI� 92000 The Honorabie Board of Directors Huntington Beach Public Facilities Corporation Huntington Beach, California We have examined the combined balance sheet of the Huntington Beach Public Facilities Corporation as of June 30, 1978 and the related combined statement of earnings and retained earnings and changes in cash position for the year then ended. Our examination was nade In accordance with generally accepted auditing standards, and accordingiy included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. in our opinion, the aforementioned combined financial statements present fairly the financial position of the Huntington Beach Public Facilities Corporation at June 30, 1978 and the results of its operations and the changes { in its cash position for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. t � i. August 25, 1978 ` 72 j HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED BALANCE SHEET ' JUKE 301 1978 Civic Total Center Project Library Project Assets Assets restricted as to use: Cash held by trustee $ 546 546 Time certificates of deposit 824,203 568,578 Temporary investments in U.S. government secu+ ities, at cost ;market: $1 ,439,641) 1 ,528,013 1 ,070,C$3 457, 130 Accrued interest receivable 54,581 33,401 21 ,180 Inter project balances - (14,8261 14,876 Total assets restricted as to use 2,407,343 1 ,658,532 748,811 i Long term leases receivable less unearned income of $12,039,694 (Note 3) 13,038,306 8,903,677 _ 4,134,62g Total assets _ 15,445,649 10,562,209 4,883,44o Liabilities and Retained Earnings 1 Current liabil ties: Accrued interest $ 366,339 271 ,355 94,984 y Cur.-ent installment .f bonds payable (Nate 4) 390,000 260,000 130.000 1 Total current liabilities 756,339 531 ,355 224,984 t Deferred lease income 84,584 84,584 _ 1 ` Bonds payable, net of current installment (Note 4) 14,4ig,000 918801000 4,535.000 Total liabilities 15,255.923 _ 10,495,939 4,759,984 Retained earnings 189,726 66,270 123,456 Liabilities and retained earnings $15,445,649_ 10,5622209 4,883.440 See accompanying notes to financial statements 73 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1978 Civic Library Comoined Ce- ter Pro]ect Project Operating revenue: Interest inccmL (Mote 3) $ 999,507 680,658 318,849 Operating expenses: ?dministrative expenses 14,710 568 14,'42 Met operating income 984,797 680,090 304,707 Nonoperating revenue: Intergovernmental revenue 103,766 88,090 15,676 � . Interest earned 186,055 131 .385 54,670 i Total operating and nonoperating income 1 ,274,618 899,565 375,053 i Nonoperating expenses: Interest expense 862,16L 587.548 274,618 i Net earnings 412,452 312,017 100,435 '! Retained earnings (accumulated deficit) at July 1 , 1977 (222,726) (245,747) 23.021 Retained earnings at .tune 30, 1978 $ 189,726 66,270 123.456 See accompanying notes to financial statements. 74 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATtPN COMBINED STATEMENT OF CHANGES IN CASH POSITION ! YEAR ENDED JUNE 30, 1978 Civic Library Source of funds: Combined Center Project Project Funds provided from operations: Net earnings $ 02,452 312,017 100,'435 Decrease in long term lease receivable 254,393 174,242 80,151 Increase (decrease) in interproject balances - 13,493 Increase (decrease) in amount due to City of (l3'493) Huntington Beach (2,459) 2,244 (4,703) Increase in deferred lease income. 84,584 84.584 - 748,970 586,580 162,390 1 Use of funds: � Redemption of bonds payable 440.000 320,000 120,000 Increase (decrease) in temporary investments in U.S, government securities lib 28,822 (28,704) Increase in accrued interest receivable 22,722 12,942 9,780 Increase in time certificates of deposit 271 ,652 216,763 54,889 Decrease in matured interest payable 1 ,900 1 ,900 Decrease in accounts payable 16,722 5,750 10.972 753,114 586,177 166.937 Net increase (decrease) in cash j (4,144) 403 (4,547) Cash balance at July 1 , 1977 4,690 143 4,547 Cash balance at June 30, 1978 $ 546 546 - See accompanying notes to financial statements. j i 75 y HUNT 114GTOI4 BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1978 1 . summary of siignifica.:t Accounting Policies The following is a summary of significant accounting policies used by the Huntington Beach Public: facilities Corporation (Corporation). i Basis of Accounting j . The accompanying combined financial statements of the Corporaton have been prepared using the accrual basis of accounting. Investments Investments are stated at cost. Such investments generally consist of Federal Government backed securities and bank time certificates of deposit. Investments of the Corporation, other than bank time certificates of deposit. are not adjusted for amortization of purchase premium or discount, which has been determined to he immaterial at June 30, 1976. Funds Under the provisions of the bond indenture agreements, the Corporation is required to a►aintain separate accountability for various types of funds the Corporation receives. A description of these funds, which have been combined for financial statement presentation, is as follows: 1 Account Source Use Reserve Fund Band proceeds and rental revenue fund Bond principal and interest Construction Fund Bond proceeds Cost of project - Interest During Construction Band proceeds First twenty-six months' interest Fund on bonds }• 76 1 ?. HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS, CONTINUED I . Summary of Significant Accounting Policies, Continued Account Source Us: Rental Revenue Fund City of Huntington Beach rent payments Required transfers to various funds and/or other specified purposes Debt Service Fund Transfers from revenue fund Bond principal and interest administrative Expenses Fund Transfers from revenue fund Corporation operatinc, expenses Bond Redemption Fund Transfers from revenue fund Call and redemption of bonds, changes, alterations or additions to the project, or reimbursement of any base rent or additional renr previously paid by the City of Huntington Beach Upon completion of construction, separate rental revenue funds were established to account for ail lease and other revenues from the City of Huntington Beach for the Civic Center and Library. The separate construction ' Funds for the Civic Center and Library projects have been left open to pay for Improvements and modifications to the project structures as approved by the Directors of the Corporation. Money in the respective rental revenue funds is disbursed as follows: First, to the debt service funds in amounts sufficient to pay one succeeding principal and two succeeding interest installments; Second, { amounts, necessary to restore the respective reserve funds to amounts equal to one year's lease revenue; i Third, administrative expense funds equal to the budgeted administrative expenses of the Corporation; Fourth, all remaining amounts to the bond redemption funds. Money accounted for in the bond redemption fund is to be used to correct deficiencies, as may arise, in , the debt service funds, reserve funds or administrative expense funds, respectively. Money remaining 5fte: the minimum requirements of the bond agreements have been met may be used to purchase or redeem outstanding bonds to make improvements or to reimburse the City of Huntington Beach for rents paid to the Corporation. 2. Organization The Huntington Beach Public racilities Corporation was incorporated under the laws of the State of California as a non-profit corporation on November 25, 1970. The Corporation was formed for the primary purpose of financing and constructing a civic center complex end central library for tIe City of Huntington Beach. The constructed civic facilities have been leased to the City of Huntington Beach under long term lease agreements. (Note 3). 77 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS, CONTINUED • 3. Leases The Corporation has entered into two lease acid sublease agreements with the City of Huntington Beach. The terms of the leases are summari-:ed as follows: a) Civic Center lease - The Corporation has entered into a lease and sublease agreement with the City of Huntington beach for the Huntington Beach Civic Center. The site upon which the Civic Center is constructed is owned by the City and has been leased to the Corporation for an advance rental _ of $350,000. The term of the lease is From Januar., 15, 1972 to one week after the termination of the sublease described in the next paragraph. The Corporation has subleased the Civic Center site and civic buildings constructed thereon, to the City for an annual rental of $854,900. This sublease commenced July 1 , 1974 and extends for a term of the earlier of: (a) thirty (30) years or (b) until the bonded indebtedness incurred by the Corporation to construct the Civic Center has been paid. b) Central Library lease - The Corporation has entered into a lease- and sublease agreement with the 7 City of Huntington Beach for the Central Library. The site upon which the Central Library is 1 constructed is owned by the City and has been leased to the Corporation for an advance rental of $300,000. The term of the lease is from September 1 , 1972 to one week after the termination of a the sublease described in the next paragraph. The Corporation has subleased the Central Library site and building constructed thereon to the City for an annual rental of $399,000. This sublease commenced February 15, 1975 and extends for a term of: (a) thirty (30) years or (b) until the bonged indebtedness incurred b, the Corporation to construct the Central Library has been paid. j Under both agreements, the City is required to pay all taxes, insurance, administrative and maintenance # costs associated with the facilities under lease. At the conclusion of the lease agreenernts title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such lease be treated as a financing lease. Under the financing method, the excess of aggre- gate rentals over the cost of the leased property is generally designed to compensate the lessor for the use of funds invested. Accorc'*,ugly, at June 30, 1978, leases receivable from the City of Huntington Beach totaling $13,038,306 net of unearned interest, for the Civic Center and Central Library facilities have been reflected in the financial statements. 78 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL. STATEMENTS, CONTINUED t . 1 4. Outstanding Indeb►edness ► A summary of the Corporation's bonded indebtedness as of June 30, 1978 is as follows: Maturities Date Interest Original Outstanding Annual Period Bond issue issue rate issue June 30, 1978 requirements covered Civic Center: Leasehold Varying amounts Mortgage Bonds, January 5.00 - from S200,000 to First Issue (a) 1972 7.00% $ 11 ,100,000 $ 10,140,000 S890,000 1975-1998 Central Library: Leasehold Varying amounts { Mortgage Bonds, February 5.00 - from $105,000 to Second issue (b) 1972 7.00% _ 5,000,000 4.665,000 $385,000 1975-1997 $ 16.100,000 $ 14,805,000 a) The $i1 ,100,000 principai amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972 and have been issued as coupon bonds in $5,000 denominations. The Bonds, which are serial in nature, mature annually on January 15 of each year. Interest is payable semiannually on January 15 and July 15 of each year. Bonds maturing on or prior to January 15, 1982 are generally not subject to call and redemption prior to their final maturity date. Bonds maturing on or after January 15, 1983 (a principal amount if $9,090,000) are subject to call and redemption at the option of the Corporation, in total or In art on January 15 1962 .! mP P P + part, Y or on any interest payment date thereafter. Call price of the bonds shall be an amount equal tc the prin- cipal amount plus a premium equal to 1/4 of i percent of the principal amount redeemed, plus 1/4 of 1 jercert for each year or fraction of a year from the redemption date to the maturity date of the bonds. in no event shall the premium exceed 4 1/2 percent. b) The $5,000.000 of principal amount of Leasehold Mortgage Bonds, Second Issue (Bonds) are doted September 1 , 1972 and have been issued as coupon bonds in $5,000 denominations. The Bonds, which are serial in nature, mature annually on September 1 of each year. Interest is payable semiannually on 'larch 1 and September 1 of each year. , Bonds maturing on or prior to September i , 1982 are genefall;r not subject to call and redemption prior to their fixed maturity date. Bonds maturing on or after September 1 , 1983 (a principal amount of $3,950,000) i are subject to call and redemption at the option: of the Corporation, in total or in part, on September 1 , 1982 i 79 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANC A A EMENTS, CONTINUED ,. �►. Outstanding Indebtedness, Continued or on any Interest payment date thereafter. Call price of the Bonds shall be an amount equal to the prin- cipal amount redeemed plus a premium equal to 1/4 of I percent of the principal amount redeemed, plus 1/4 of I percent for each year or fraction of a year from the redemption date to the maturity date of the Bonds. In no event shall the premium excead 4 percent. i i f T, 1 i I . '� 80 i i PARKING AUTI?ORITY OF THE CITY OF HUNTINGTON BEACH t FINANCIAL STA`TEM-NTS JUNE 30, 1978 (With Accountants'Report Thtnon) 1f i I I S i j � i 1_ PEAT. M.,�.RATICK, 1%1ITGIIELL RC CO. • CERTIFIED PUBLIC ACCOUNTANTS l000 NEWPORT CENTER DRIVE NEWPORT DE.ICII,CALIFORNIA 0:76 0 i 1 . The Honorable Members of the Parking Authority it City of Huntington Beac10 t Huntington Beach, California i We have examined the balance sheets of the Parking Authority of the City of Huntington Beach as of June 30, 1978 and 1977, and the related statements of earnings and retained earnings and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedure! as we considered ;necessary in the circumstances. In our opinion, the aforementioned combined financial statements present fairly the financial position of the Parking Authority of the City of Huntington Beach at June 30, 1978 and 1977, and the results of its operations 1 and the changes in its financial position for the years then ended, in conformity with generally accepted acc3unting principles applied on a consistent basis. 1 August 25, 1978 81 PARKING AUTHORITY OF THc CITY OF HUNTINGTON BEACH BALANCE SHEET JUNE 30, 1978 AND 1977 Assets: 1978 1977 Current assets : Cash and term deposits $ 137,503 131 ,357 Receivables: Due from general fund - 1 ,448 Accrued interest receivable 14,63i 28,474 Total receivables 14,631 29,922 Total current assets 152,134 161 ,279 Assets restricted as to use - investments, at cost which approximates market value (Mote 3) 572,107 6:3,417 i Fixed assets, at cost: i Land 371,065 371 ,065 Improvements 1 ,624,089 1 ,694,09 Less: allowance for depreciation 605,217 532,533 Total fixed assets 1 ,459,937 1 ,532,621 Total assets $ 2,184,178 2.367.317 Liabilities and Retained Earnings: Current liabilities: Accrued interest payable $ 30,078 32,309 Current installment of bonds payable (dote 3) 75,000 70.000 Total current liabilities 105,076 102,309 Deferred lease income (Note 4) - i70,0SO Bonds payable, net of current installment {"cote 3) - 1 ,7601000 1 ,835,000 Total liabilities 1 ,865,078 2.107.359 Retained earnings 319,100 279.958 Total liabilities and retained earnings $ 2,184,178 2,387,3 See accompanying notes to financial ttatements. 82 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF EARNINGS AND RETAINED EARNINGS i i `- YEARS ENDED JUNE 30, 1978 AND 1977 1978 1977 Operating revenue: j Rentals Note 2 I S 17a,O5a l7O,o5o Operating expenses: , Depreciation 72,684 72,684 Net operating income 97,366 97,366 Noiioperating revenue: Interest earned 35,345 50,197 Total operating and nonoperating income 132,711 147,563 Nonoperating expenses: Interest expense 93,569 97,983 Net earnings 39,142 49,580 Retained earnings, begi•.ning of year 279.958 230,378 Retained earnings, end of year $ 319.100 279,958 See accompanying notes to financial statements. V 'J i 1 7j J 83 i I PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENTS OF CHANGES IN FINANCIAL POSITION YEARS ENDED .JUNE 30, 1978 AND 1977 Sources of :working ;:api tal 1978 1977 Net earnings S 39,142 49,580 Items ,which do not use (provide) working capital : Depreciation of land improvements 7c,S$4 72,6$4 Working capital provided by operations 111 ,826 122,264 De_reas^ in restricted assets 121 ,310 - y Decrease in working capital 11 ,914 4,556 $ 245,050 126,820 Uses of working capital : Decrease in bonds payable $ 75,000 65,000 Reduct;on in deferred lease income 170,050 - f increase in restricted assets - 38,$14 Additions to parking improvements - 23,006 E $ 245,050 126,-820 t Changes in components of working capital : i Decrease (increase) in current assets: Cash and term deposits $ (6,i46) 15,722 Receivables 15,29) (10,142) 9,145 51580 Increise (decrease) in current liabilities: Accrued interest payable (2,231) (1 ,024) ` Current instailment of bonds payable 51000 - 21769 (1 ,024) Decrease in wor%ing capi tcl $ 11 ,914 4,556 See accompanying notes to finaticl,-ii statements. i I t PARKING AUTHORITY OF THE CITY OF HUNT I ii4TON BEACH 4. is NOTEf TO FINANCIAL STATEMENTS JUNE 30, 1978 (1) Summary o '_'°gnificant Accounting Policies oasis of Accounting 1 The accompan•fing combined financial statements of the Parking Authority of the City of Huntington Beach 1 (Parking Authority) have been pre;:;red using the accrual basis of accounting. Fixed Assets and Depreciation Fired assets are recorded at cost. !and improvements are depreciated using the straight line method over the term of the lease (26 years) with the City of Huntington Beach (City) . Investments f Investments are stated at cost. Such investments consist of Federal government backed securities and bank I time certificates of deposit (see Mote 3). } Luse E The P; ing Authority leasing operations consist principally of the leasinq of its parking facilities to the s City a Huntington Bach. The Parking Authority lease with the City of Huntington Beach is classified as an 1 operatirq lease. 9 (2? Operations a The Parking Authority is an independent public agency estaLlished in 1967 under provisions of the Parking Law of 1949. The primary purpose of the Parking Authority Is to provide off-street parking facilities for the City of Huntington Beach. The Parking Authority leases its parking facilities to the City under a lease agreement which requires minimum annual rental payments of $170,050 through July 1 , 1993. The Parking Authority obtained the funds :o acquir-. and construct these facilittes through the issuancp of $2,300,000 of revenue bonds which are secured by the rental payments rece=ved from. the City. The rental is payable annually on July 1. Rental income is to be used for bond principal and Interest requirements. Excess funds, if any, including Interest eart;ed thereon, which are net squired to meet scheduled principal and interest payments and wh!r-h. are not required by the bond Indenture agreement to be establish-d as a �- reserve may be: (1) used to finance additions and inprc4ements to the parking facility, or (2r appi:_d as 2 a 4�edit again_t annual rental payments from the City. 85 PARKING AUTHnRITY OF THE CIT7 OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, CONTINUED (2) Operations, Continued Under the terms of the lease agreement dated September 30, :968 between the Parking Authority and the City the lease is to terminate after all of the 1968 revenue bonds are retired or provision for retirement has been made. All casts of maintenance and operation have been assumed by the City. The City must also pay, in the Form of additional rent, all taxes, assessments, insurance, fees and other expens— of the Parking Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility (3) Bonded Debt A summary of the Parking Authority bonded debt is as follows: Bonds Bonds 1 , Matured Matured Amount of Bonds During Bonds During Bonds Date Years of Rate of Original Outstanding Fiscal Outstanding Fiscal Outstandir Des�rlption of Issue Maturity [nterest issue 4u�, 1976 1977 6/30/77 1978 6/30/78 1968 Parking September, 1970-72 6.00% 1501000 Revenue Bonds i968 1973-79 4.75 47010n0 290,000 65,000 225,000 70,000 155,000 1980-85 5.00 570,000 570,000 - 570,000 - 570,000 1986-93 5.25 111101000 1 , 110,00 - 1,110,000 - 1 ,110.000 $2,300,000 1 ,970,000 65,000 1 .905,000 70,000 1 ,835,000 Interest is payable semiannually each year on March 1 and September 1 . Provisions of the bond agreement provide for the establishment of three special funds as follows: (a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking facility are placed in the 3ond service fund. Money in this fund is used to pay bond principal and interest. Amounts received in excess of the amount required to meet pri;�-ipal and interest requirements may be transferred to the reserve fund or working capital fund. Under certain cir- cumstances such excess funds may be used to finance aad'tions and improvements or reduce the annua. rental due from the City. B6 PARKING AUTHGkITy OF THE CITY OF HUNTIIIGTON BEACH NOTES TO FINANCIAL STATSMENTS, CONTINUED (3) Bonded Debt, Continued . I (b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside to l be used to pay principal and interest coming due in the event there is insufficient mar:cy 'n the bond service fund and may be appi'led to Vie final payment-, of principal and interest. (c) Working Capital Fund - After provision has been made for payment of bond principal and interest and an appropriate reserve fund balance has been established, excess money, if any, remaining in the bond service fund may be -transferred to the working capital fund to be used to pay the adminis- trative expenses of the Parking Authority and maintain the working capital fund's cash at a balance of at least $1 ,500. At iw.ie 30, 1976, the Parking Authority maintained the following investments pursuant to the terms of the bond agreement (see Note 1) : 1978 1977 Bond Service fund S 483,79L 602.629 Reserve Fund 88,3:3 90.788 $ 572,}07 693.417 Bonds maturing on and after September I , 1980 are subject to tali and redemption at the option of the Parking Authority as a whole or in part, in inverse Grder of maturity and by bond number within a single maturity on September 1 , 1979 and on any interest payment date thereafter. The bonds are redeemable at par value plus accrued interest and a premium equal to 1/4 of 1 percent for each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3 1/2 percent. (4) ieferred Lease Income Prior to June 30, 1977, the City prepaid the 1978 fiscal near annual rental parking facility rental aggre- gating $170,050. Srch rental, normally due on July 1, has been treated as deferred lease Income for finan- cial statement purposes. 87 1 L i. 1 of the CITY OF HUNTINGTON BEACH for the FISCAL Y.;,.=.AR ENDED JUNE 3071979 DEPARTMENT OF FINANCE +" Frank B. ArguE;lo, Director f Daniel T.Viliella, Asst. Director CITY OF HUN71INGTON BFACH A14NUAL F1RANCIAL REPORT TABLE OF CCUTENTS • r Exhibit Page Letter of Transmittal i Elected City Officials 4 Departments of the City 4 Accountants' Report 5 Financial Statements: Combined Balance Sheet - All Funds and Account Groups A b General Fund: �{ Balance Sheet B 10 • Statement of Chanaes in Fund Balance C 11 Statement of Revenue - Estimated and Actual D 12 Statement of Appropriations, Expenditures and Encumbrances E 16 I 1 Special Revenue Funds: ` Combined Balance Sheet F 20 Combined Statement of Changes in Fund Balance G 22 ! Statement of Revenue, Expenditures and Encumbrances - C i Budget and Actual : Special Gas Tax Fund H 24 i Civic Improvement Fund la 25 Library Service Fund 1b 26 r Sewer Fund 1 27 i1 Planned Local Drainage K 2.8 General Revenue Sharing Fund L 29 Federal Manpower Grant Fund M 31 j Other Grants Fund N 32 Park Acquisition and Development Fund 0 33 Traffic Safety Fund P 35 Parking Meter Fund Q 3E i If I . - CITY OF HUN77NGTON BEACH ANNUAL FINANCIAL REPORT 1 TABLE OF C01iTENTS Exhibit Page • Internal Service Fund Self InsuranceII Balance Sheet R 37 Statement of Revenue, Expense and Retained Earnings S 38 Statement of Changes in Financial Position T 39 Debt Service Funds: Combined Balance Sheet U 40 Combined Statement of Revenue, Expenditures and Fund Balance (Deficit) V 41 Capital Project Funds: Combined Balance Sheets W 42 Combined Statement. of Revenue, Expenditures, Encumbrances and Fund Balance X 43 Enterprise Funds: Combined Balance Sheet y 44 Water Utility Fund: Statement of Revenue and Expenses 2 46 Statement of Changes in Retained Earnings AA 47 Statement of Changes in Financial Position BB 48 Meadowlark Golf Course Fund: Statement of Revenue and Expenses CC 50 Statement of Changes in Accumulated Deficit DD 51 Statement of Changes in Financial Position EE 52 Trust and Agency Funds: Combired Balance Sheet FF 53 Combined Statement of Changes in Fund Balance GG 54 ii ` CITY OF HIIN77NGTON BEAM ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Exhibit Page t I Dotes to Financial Statements 55 Supplemental Information (not covered in accountants' report) i Statement of General Fund Revenues - Other than Property Taxes Schedule 1 64 Statement of Expenditures and Encumtrances for General Fund Schedule 11 65 Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bond Debt to Assessed Value and Per Capita Schedule 111 67 I Statement of Tax Delinquencies and Impounds Schedule 1V 68 Statement of Future General Obligation Bond Debt Requirements by Year Based on Bond Debt Schedule V 69 Statement of Future Water Revenue Bond Requirements by Year on Outstanding Debt Schedule VI 70 Huntington Beach Public Facilities Corporation - Statement of Bonded Debt Schedule VII 71 l Huntington Beach Public Facilities Corporation - Statement of Future Debt Requirements by Year Based on Bonded Deb, Schedule Vill 72 Parking Authority of the City of Huntington Beach - Statement of Bonded Debt Schedule IX 73 ( Parking Authority of :he City of Huntington Beach - Statemeat of Future Debt Requirements by Year Based on Bond Debt Schedule IX 73 City of Huntington Beach Public Facilities Corporation ` Aeeoe:ntants' Report 74 Financial Statements Combined Balance Sheet 75 Combined Statement of Earnings and Retained Earnings 76 Combined Statement of Changes in Financial Position 77 Notes to Financial Statements 78 City of Huntington Beach Parking Authority Accountants' Report 133 iii F HCITYO N71NGTON BEACH U ANNUAL FINANCIAL REPORT TABLE Of CLNTENTS Exhibit Page City of Huntington Beach Parking Authority, Continued Financial Statements Balance Sheet 84 Statement of Earnings and Retained Earnings 851 Statement of Changes in Financial Position e6 Notes to Financial Statements 87 I f 1 iv l : CITY OF HUNT3NCT0N BEACH OFFICE OF DIRECTOR OF FINANCE FRANK B. ARGUELLO, DIRECTOR � I 28, 1979tember Mr. Floyd G. Belsito September ' City Administrator City or Huntington Beach, California Dear Mr. Belsito: Submitted herewith is the Finance Department's annual report containing the City's financial statements for the fiscal year ended June 30, 1979. The comprehensive report encompasses all funds, reflects the results of all financial transactions, and represents the culmination of accounting processes performed during the fiscal year. iienera I Fund Revenues and transfers from Other Funds for general fund purposes totalled $32,330,003 in FY-1979, an increase of 5 387,232, or 1 .2"= when compared to FY-1978. The greatest impact on City revenue of course, was brought about F•, the passage of Proposition 13. The decrease in property tax -everue of $5,820,�85 was softened by the Clty's receipt of 52,133,703 in State surplus aid funds. The revenue from various sources and the changes as compared I to FY-1978 are as follows. { Percent Change from F.-1978 ��•���� Amount _ of Total Amount Percent Property Taxes $ 6,671 ,049 20.6% S (5,820,385) (46.6%) Other Local Taxes 12,825,531 39.7 4,872.543 61 .3 Licenses and Permits 2,485.540 7.7 (167,589) (6.3) Fines and For�eitures 224,026 .7 7,664 3.5 From Use of Money and Property 1 ,814,115 5.6 398,903 28.2 From Other Agencies 5,502,464 17.0 2,426,214 78.Q From Charges for Current Services 953►790 3.0 15,608 1 .7 Other Revenue 84,458 .3 (15,142 15.2 Transfers from Other Funds 1 .768,970 5.4 (1 ,3s0,084 42. Total $ 32,330,003 100.0% $ 3$7,232 i.2 i r l f CITY OF HUNTINGTON BEACH • Gross expenditures and encumbrances for gener40 fund purFoses totalled $33,594,546 in FY-1979 - an increase of S3,663,072 or 12.2=� over FY-1978. Expenditures and encumbrances are indicated by function as follows. The change in relation to FY-1978 expenditure and encumbrance activity is also demonstrated. Percent Change from FY-1978 Function Amount of Total A.-taunt Percent _ it Administrative Servires S 5,800,398 17.3% S 2,003,215 52.8t Community Services 8,384,971 25.0 i735,765) (8.7) Public Safety Services 17,017,425 50.6 1 ,81•0,604 12.1 Support Services 2,391 ,752 7.1 5555,018 _ 30.2 Total S 33,594,546 100.0% S 3,663,072 12.2Z The unappropriated general fund balance decreased from S2,258,779 in FY-1978 to $2,091 ,495 in FY-1979, a decrease of S167,779, or 7.4 The City continues to fund accrued employee vacation and sick leave in the amount of t 51 ,715,887• Assessed valuation decreased by $22,538,125 to $831 ,783.620 in FY-1979 - a 2.6% decrease, in FY-1980, it is anticipated the assessed valuation will increase to S983,927,670, an increase of $152,144,050, or 18.3%. A comparison of assessed valuation over the last three years with anticipated FY-1980 assessed valuation is as follows. Assessed Change from Prior Year Fiscal Year Valuation Amount Percent 1980 $ 983,927.670 152,144,050 18.3% 1979 831 ,783,620 (22,538,125) (2.6) 1978 854,321 ,745 144,242,510 20.3 1977 710,079,235 129,455,875 22.3 11 Outstanding general obligation bonds as of June 30, 1979 totalled $4,810,000, comprised of $70,000 outs,4-.anding on the 1955 Water Bond issue and $4,740,000 outstanding on the 1970 Park Bond issue. There is, as of June 30, 1379, $2,160,000 outstanding on the 1963 Water Revenue Bond but this does not represent a general obligation of the City of Huntington Beach. The tax rate necessary to provide funds for voter approved indebtedness totalled $.1972 per $100 of assessed valuation in FY-1979 and is anticipated to be the same rate per $100 of assessed valuation in FY-1980. This is in addition to the City's share of the overall $4.00 per $100 of assessed 2 CITY OF HUNTINGTON BEACH valuation permitted as a result of the passage and implementation of Proposition 13. ' Comparative data for the City's Water Utility operation for the past two years is as follows. 1979 1978 Total operating revenue $ 5,168,GO3 $ 4,759,570 Net income 1 ,146,467 905,882 A supplemental information section has been included in this report which contains comprehensive statistical data. Such data is presented so as to relate physical , economic, social and political characteristics of our city which should give the readers of this report a more broad and more complete understanding of the City and its financial operations. In accordance with Section 616 of the City Charter, the City Council shall employ at the beginning of each fiscal year an independent certified public accountant who should examine all City accounts and the results reported to the City Council. The opinion of Peat, Marwick, Mitchell & Co. , Certified Public Accountants, is included in this report. I` I wish to express my appreciation to the members of the Finance Department without whose dedicated efforts this ` report would not be possible. in addition, 1 would express my appreciation to you and the City Council for the l continuing support and interest in planning and conducting the fiscal affairs of this city in a responsible and l progressive manner. Respeztfully submitted, Frank B. Ar ello t Director of Finance i t — 3 CITY 4F HUNTING ON BEACH -- ELECTED OFFICIALS _ City Council Donald A. MacAllister Mayor Robert P. Mandic, Jr. Mayor Pro Tem Ruth S. Baiiey Councilperson Ruth E. Finley Councilperson Ronald R. Pattinson Councilperson John A. Thomas Councilperson Clancy F. Yoder Councilperson Other Gail Hutton City Attorney Warren G. Hall City Treasurer Alicia M. Wentworth City Clerk i _ Departments of the City Floyd G. 8elsito City A,�^'^;strator Frank B. Arguello ►':rector of Finance James Palin Development Services Director Michael Zambory Director of Public Works Walter W. Johnson Library Director Vincent G. Moorhouse Community Services Director Raymond C. Picard Fire Chief Earle W. Robitaiile Police Chief Edward Thompson Personnel Director a 4 _ PEAT. MARIVICI{. %-'rITCIiELL & CO. CERTIMED PCISLIC ACCOUNTANTS 060 NXWPORT CENTES DRIVE 2 EWPORT DF.AC11.CALrFORX1A 92000 The Honorable City Council of the City of Huntington Beach i i We have examined the financial statements of the various funds and account groups of the City of Huntington Beach for the year ended June 30, 1979 (Exhibits A through GG, cn Pages 6 through 63) , as listed in the :able of contents. our examination was made in accordance with generally accepted auditing standards and, except for the matters discussed in the second paragraph below, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. 1 As explained in Note 1 cf notes to financial statements, the City has not maintained adequate detailed records of its general fixed assets and those fixed assets of the Water Utility fund. As a result of such incomplete records, we were unable to satisfy ourselves, by appropriate audit tests or other means, as to the reasonableness 1 of the amounts recorded as fixed assets in either the General Fixed Assets Group of Accounts or the Water Utility Fund. Because of the materiality of amounts recorded as property, plant and equipment in the General fixed Assets Group of Accounts, we are unable to express our opinion on the accompanying financial statements of the General Fixed f Assets Group of Accounts. In our opinion, except for the matters discussed in the preceding paragraph, relative to the Water Utility Fund, the aforementioned financial statements present fairly the financial position of the various funds and General Long Term Debt Group of Accounts of the City of Huntington Beach at June 30, 1979 and the results of operations of the various funds and changes In financial position of tie Water Utility Fund, Meadowlark Golf Course Fund and Internal Service Fund - Self Insurance for the ye:-r then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of tiva preceding year. 4AW i i September 14, 1579 5 CITY OF HUN71NGTON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT'GROUPS .TUNE 30, 1979 Special Internal Debt General Revenue Service Service Assets Cash and tern deposits S 6,418,035 10,459,768 3.306,159 52,526 J Accounts receivable, net 35.325 1 ,512 - - Property taxes receivable-net of reserve for taxes 228,635 - - - Notes receivable - 230,706 - - Interest receivable 138,501 - 47,728 Investments at cost which approximate market (Note 5) 189.245 - _ _ Other receivables - _ ! Due from other funds 486,150 505,136 - - ! I Due from other governmental units, net 137.446 2,023,448 - 19,102 Prepaid expenses 99.551 - - - Deposits _ _ Amount a•:ailanle in Debt Service - _ Amount to ae n-avided for debt retirement _ Amount to be provided under financing leases (Note 3) - - _ Leased `acilities under financing leases (dote 3) - 4 Proper:;, plant and equipment, net of allowance for depre- I ciation y Restricted assets - cash and investments 22,664 1 _ s 3 Total assets S 7,755,552 13,220,570 3.353.887 71 ,628 See actcmpanying notes to financial statements. 6 CITY OF 11MINGTON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS EXHIBIT A .TUNE 30, 1979 � General Capital Trust General Fixed Projects Enterprise and Agency LonSTerm Assets _ 624,614 3.701 .036 1 .269.497 - - - 280,269 - - - _ _ 52,788 _ 21 ,009 16,507 - - - 17,315 - - - - 15,179 - - - 4,341 - - - - 32,269 - - - - - _ 52,280 - - 4,757,720 - j 12,795,831 - _ - - - 12.7b2.795 i t - 25,960,710 - - 18,563,761 j 357,286 1 649,964 30.440.�7 1.3�,,Z 1:,605.831 3i.?26,-.0 S I 7 7 i I CITY OF HUNTINGTON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT -GROUPS JUNE 30, 1979 Liabilities, Reserves, Fund Balances Special Internal Debt and Retained Earnings seneral Revenue Service Service L*,abiiities: Cash overdraft - 922,491 - 19,348 Accounts payable and accrued expenses S 1 .523,147 335,150 12,911 - Unearned revenue 15,568 Liability insurance claims payable (Nate 9) - - 552,2$0 - worHr-cn's compensation claims payable (dote 9) - - 570,928 - Customer deposits 205,354 1 ,548 - - Due to other funds 25,940 573,714 3,458 - Accrued interest payable - - - - Deferred revenue - 14,960 Current instailment of bonds/notes payable (Notes 2,6,7) - - - Matured interest payable - - - Deferred rental income (Note 3) 588,354 - - - Bonds and interest payable - - - - Obligation under financing leases - - - - Bonds, net of current installment (Note 6) - - - - Notes payable, net of current installment (dotes 2,7) - _ - - Total liabilities 2,358,363 1 ,847,863 1 ,139.577 i9.348 l Encumbrances outstanding 1 ,12$,161 2,586,$55 - _ Reserves , contributions, fund balances & retained earnings: Reserves for: Revenue bond retirement - - - Other 410,000 78,226 - - Total reserves 410,000 78,226 - - Contributions: Contributions in aid of construction Contributions from general fund _ . Total contributions - - _ - 1 Fund balances : Unappropriated fund balance (Note 10) 2.091 ,495 8,572,681 52,280 Appropriated fund halance 1 ,767.533 134,945 _ - _ - T�tal fund balances 3, 59,028,767,626 - 52 — Re;erve for Investments in general fixed assets _ - - - - Re�aincd e::r.zings - - 2.21 .310 - Commitments and contingencies (Notes 4,8) - - - - S 7,755,552 13,220,570 _ 3.353.887 71 ,628 See accompanying notes to financial statements. --- — CITY OF HUNTINGTON BEACH COMBINED BALANCE SHEET - -LL !UNDS AND ACCOUNT GROUPS EXHIBIT A; continued JUN' 30, 1979 General General C3pit•'i Trust Long Term Fixed ' -ejects Enternrise and Agency Debt _ Assets 904,940 2J:5,239 220,940 -61 ,250 - - - - 145,M - - - ' �J,062 - - - 6,4 _ - - 12,795.831 _ = 2.010,000 = —4,810,000 = - 1 ,901 ,910 ' 5.309,164 227.384 17,605,831 194,924 - - - 194 15. i7.1 ,59t 11 ,35M. 12 — - - - i _ - 16.481 .62 - - 647,302 - 1 ,094,901 - - _ - - 8,454,858 _649,964 30,44o,571 1 ,322,2E5 i7,605,83i 31 ,326.556 � 9 CITY OF IIUN nNGTON BEAM ' GENEIUAL FUND EXHIBIT B BALANCE SHEET JUNE 30, 1979 Ca-z- and term deposits $ 6,4i8,035 . ccc--:s receivable - net 35,325 ProLer_y taxes receivable - net 228,635 -�;ceivable 138,501 at cost which approximates market 189,245 other funds 486,150 E Due from., other governmental units 137,446 Prepaid expenses 99,551 Restricted assets cash 22,664 Total assets $ 7,755,552 Liabilities, Reserves and Fund Balance Liabilities: Accounts payable and accrued expenses $ 1 ,523,147 Unearned revenue 15,568 CJs :o-r_r deposits 205,354 Deterred rental income 588,354 Cue to other funds 25.S40 Total liabilities 2,358,363 Encurbrances outstanding 1 ,128,161 Reserve for amounts due beyond one year 41o,500 Fund Balance: Unappropri.'ted fund balance 2,091 ,495 rppr•3priated fund balance 1 ,767.533 Total fund balance 3.859,028 i Total liabilities, reserves and fund balance S 7.755,552 See accompanying notes to financial statements. 1 10 { 1 . CITY OF HUNTINOTON BEACH GENERAL FUND EXHIBIT C 1 STATEMENT 3F CHANGES IN FUND BALANCE YEAR LADED JUNE 30, 1979 f Fund balance, July 1 , 1978 $ 4,105,212 Add: Revenue and transfers 32.330.003 Cancellation of 1978 outstanding encumbrances 854,144 Transfer to close Civic Improvement Fund 592,074 Total additions 33,776,221 Deduct: Expenditures and encumbrances 33,594.546 Amount reclassified to reserve 410,000 Transfer to Grant Fund 21 ,859 Total deductions 34.026,405 # Funa balance, June 30, 1979 $ 3.859.028 F See accompanying notes to financial statements. I r - { 11 f i CITY OF HUNIINGTON BEACH GENERAL REND EXHIBIT D STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR EWDED JUNE 30, 1979 Excess -� of Actual Percentage Revenue Over i, Original Revised Actual (Under) Estimate Budget Change Budget Revenue Estimate Realized General Property Taxes Current taxes - secured $ 5,777,240 5.777,240 5,951 ,007 173.767 103% Current taxes - unsecured 678,483 678,483 675,892 (2,591) 100 Interest and penalties 23,000 23,000 38,208 15,208 i66 Aircraft 5,569 5.369 5,729 160 103 Other 213 213 - Total general property taxes 6,484,292 - 6,484,292 6.67,1 ,o49 186,757 _ 103 Other Local Taxes Sales and use tax 7,200,000 7,200,000 7,251,302 51,302 10) Franchises - utility 530,000 530,000 576,294 46,294 l09 Franchises - pipeline 22,000 22,000 27,243 5,243 124 In lieu - water utility 749.250 749.250 748,880 (370) 100 Occupancy tax 85,000 85,000 98,156 13056 115 Cigarette tax 590,000 590.000 534,407 (55,593) 91 i Utility tax - water 200,000 200.000 227,421 27,421 114 I Utility tax - gas 500,000 500,000 640,305 140.305 128 Utility tax - telephone 1 ,000.000 1,000,000 1 .047,370 47,370 105 i Utility tax - electricity 1 ,580,000 11580,000 1 ,673,983 93,983 106 1 Other 230 230 Total other local taxes 9,176,250 3,280,000 12,456,250 12,82S.591 369,341 103 Licenses and Permits Lic.-ise - business 610,000 610,000 643,801 33,801 106 License - oil well production 1 ,062,500 1 ,062,500 969,243 (93.257) 91 License - bicycle 10,000 10.000 13.932 3,932 139 License - oil inspection 76,000 76,000 107,250 31,2SO. 141 License - animal 150,000 150,000 120,739 (29.261) 80 Permits - building 425,000 425,000 256.395 (168.605) 6o Permits - plumbing 90,000 90,000 76.435 0 3.S65) 85 Permits - electrical 130,000 130.000 124,153 (5,841) 96 Permits - heating S 45,000 45,000 4S.079 79 100% � 12 I i _ CITY OF HUN71NGTON BEACH "ENERAL FUND EXHIBIT•D, Continued �- STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED .TUNE 30, 1979 Excess 1 of Actual Percentage Revenue Over of Original Revised Actual (Under) Estimate Budget Change Budget Revenue Estimate Realized Licenses and Permits, Continued Permitz - aiste water S 22,000 22,000 13,004 (8.996) 59% Permits - street and curb cut 46,000 40,000 50,132 10,132 125 Permits - other 27,000 27,000 65,377 38,377 242 Total licenses and permits 2,687.500 2,687,500 2,485,540 (201 ,960) 92 Fines and Forfeitures j Court Tines 225,000 225,000 184,837 (40,163) 82 Library fines and fees 32,000 32,000 39,189 7,189 122 ! Total fines and forfeitures 257,000 257,000 224,026 (32,974) 47 (t Use of Money and Property Interest income 325,000 50,000 375,000 755,723 380,723 202 Lease - HUntington Driftwood 96,000 96,000 32,000 (64,000) 33 Rentals _ land 50,000 50,000 53,244 Rentals park buildings 25,000 3,036 124 Rentals pier and concessions 45,000 45,000 31 ,088 6,088 124 - p' 45,00o So,o88 5,088 111 Rentals - beach and concessions 160,000 160,000 177,159 17,159 City oil wells 70,C-J0 70,000 79,721 9,721 114 Royalties and easements 90,000 30,000 79,440 (10,560) 88 Royalties - park 900• 900 364 (536) 40 -- Parking lots 490,000 490,C00 488,735 (1 ,265) 10D Sunset Vista camper facility 55,000 55,000 52,219 (2,781) 55 Showmobtle rental 1 ,000 1 ,000 11050 50 105 Community gardens 200 200 180 (20) 98 Central Park concessions. i5,000 15,000 6,709 (8,291) 45 Other 1 ,500 _ 1,500 6,447 4,947 430 Total use of money and $. 1 ,424,600 50,000 1 ,474,600 1 ,814,115 339,515 property i 13 - 1 ti NGTGN MACH � II CITY OF t7NTt GENERAL FUND EXHIBIT D, Continued 1 STATEMENT OF REVEMJE - ESTIKATED AND ACTUAL. � YEAR ENDED JUNE 30, 1979 Excess of Actual Percentage Revenue Over of Original Revised Actual (Under) Estimate Budget Change _ Budget+ Revenue Estimate Realized Revenue from Other Agencies Trailer coach license fee $ 100,000 100,000 87,140 (12,860) 87% Alcoholic beverage fee 70,000 70,000 63,827 (6,273) 91 County lifeguard and maintenance 130,000 130,000 125,981 (4,019) 97 1 Documentary transfer tax 340,000 340,000 321 ,236 (18,764) 95 State oil and gas lease 90,000 90,000 89,142 (858) j9 Federal government 25,000 25,000 20,335 (L.965) 80 Motor vehicle in lieu 2,300,000 2,300,000 2,341 .592 41 ,592 102 Bagley conservation fund 500 50^. - (500) - Joint Powers - Fire 145,000 145,000 170,304 25,304 118 injury leave reimbursements 65,000 65,000 70,172 5,172 i08 State mandated cast reimbursements 68,309 68,309 - State surplus aid 2.133,703 2,133.703 2,133,703 - 100 Other 20,000 20,000 11 .023 „ (8,,377) 55 Total revenue from other ag•-ncies 5,09,,291 5,419,203 5..502.464 83.261 _ 143 Charges for Current Services Zoning and subdivision 60,000 60,000 30,876 (29,124) 51 Sale of m?ps and publications 9,000 9,000 10,103 1 ,103 112 Oil well application fees lC,000 10,000 500 (9,500) 5 Misc. filing and cert. fees 1 ,000 1 ,000 630 (370) 63 Plan check fees 205,000 205,000 169,325 (35,675) 83 'engineering and Inspection fees 160,000 163.000 144,256 (15,744) 90 Weed abatement 23,000 23,000 25,577 2,577 111 Special Police services 35,000 35,000 51,035 16,035 146 1 Recreation fees 130,000 130,000 167,92S 37,925 129 Recreation contract 90,000 90,000 152,928 62,028 170 Exemption declarations and resources 11 ,000 11 ,000 5,803 (5,197) 53 Water quality analysis 2,000 2,000 765 (1 ,235) 38 Junior lifeguard program 23,800 21,800 31 ,579 7,779 133 Library service 25,000 25,000 35,080 iO,080 140 Post reimbursement $ 50,000 50,000 76,157 26,157 152% 14 CITY OF NUNMNGTON BEAM GENERAL FUND EXHIBIT D, Continued { STATEMENT OF REVENUE - ESTIMATED AND ACTUAL. YEAR ENDED .TUNE 30, 1979 Excess of Actual Perc,:i,tage Original Revised Actual Revenue Over r+f Estimate Charges for Current Services, Budget Change Budget Revenue (tinder) Estirnatr .,-aIIzed Continued Adventureland $ 1 ,000 1,0GO 4,885 3,885 489Z Certificate of o:tupancy fees 15,000 15,000 9,588 (5,412i 64 Grading plan check fees 3,000 3,000 2,131 (36<1 71 Special fee - Engineering 6,000 6,000 4.307 (1 ,F;3) 72 Fire Department reports 30U 300 326 26 109 Other i0'100 10,100 30,014 .91914 297 Total charges for current { services 870.200 870,200 953L1.70_ 83,590 110 C her Revenue Sale of property - equipment 25,GOO 25,000 ii,926 (7,074) 72 gale of surplus real property - - 33,660 33 AP2 - Sale of merchandise 15,000 15,00 v 5,528 (9,472) 37 ni_counts earned 6,50 6,B00 1 .049 (5,451) 16 Special fees - inspection 5,500 „500 7.933 2,413 144 Other 6,000 6,000 181362 17,J! 306 r Total other revenuF 58,t;00 r8,nrn 04.458 26,458 146 Total general fund revenue 26,377,045 3 �r� 30,561,033 $53.988 IO i Transfers From Other Funds ' Civic improvement Fund s,076" (2,076,100) -0- - - Special Gas Tax Fund 755. _ 755,000 740.462 (14,538) 98 r Traffic SaFety F_nd 5�5. ,000 540,000 78I,425 241,415 145 Parking Meter Fund 1+5,000 MAW 141,938 (13,062) 92 Revenue Sharing 9.562 9,562 9,562 too Liorary Service Fund 130,000 130,000 95.583 (34.417) 73 II Grant Fund - - - Total transfers 3,65b;100 (2,066,538) 1 ,589,562 1 ,768,970 179,408 Total general fen ' „ revenue and transfers $30.033.145 1 .263,462 31 ,296,607 32,330,003 1.033►396 10 X See accrr..p,r\. ing Totes to financial statev*nts. • i Crff OF HUNInNEG ON MACH -� GENERAL FUND _ STATEMENT OF APPROPRIATIONS, EVENDITURES AND ENCUMoRANCES YEAR ENDED J--NE P, 1979 Appropriations Expenditures rsanaI Ma ntenance Original Revised Services and Capital Budget Change Budget Cost Operation Outlay i AdministrativeI City Council 43,187 256 43,443 26,008 11,455 Non-Oepartmentai 3,636,457 2,1'8,718 5,825,175 4.543,525 Adm:nistration 979,913 45.137 1 ,025,050 775,868 t554'W 36,963 Civic Pro;notion 38,918 17,469 56,387 8O9 �i3,lr 4 Total Administrative 41628,475 2,2511,5110 6*950,055 802,685 4,752, 4W Comm Gi ty Services Planning 650,000 7.185 657,18S 524,209 19,015 Library 1 ,123,300 107,949 1,231,249 786,649 283,685 61890 Recreation and Parks 1 ,709,000 58,549 1 .767,549 1,295,651' 3=7,339 6,424 Public Works 4,603A21 402,886 5,006,607 3.363,165 I-M-29n 34,670 T,stal Community Servl�es 8,086,221 S76369 8,662,790 5,9691680 i, MRR 47,984 Public Safety Fite 5,200,000 526,024 5,726,024 5.290,921 340,320 31 ,047 Police ,200,�0 3 760 9,511,760 8,537,685 609,867 +3,598 Harbors and Beaches ?,107.789 ��,560 1 ,172,349 698,942 196,436 481 Building _ 859.780 2,430 862,210 772350 16.918 298 Total Public Safety 16.367,569 904,774 17,272,343 15,500,498 1 ,163,541 45,424 Support Treasurer 1,388,000 9,723 1,397,723 140,316 1 .212,582 21 Attorney 355,000 21,904 376.904 290,312 83,579 62 Clerk 108,700 2,494 111,194 91,538 15,809 Personnel 183,000 36,500 219.500 134,635 59,003 211 Finance 334,800 26,340 361,140 350,8Y3 (3,155) . 1 Total Support 2,369,500 _ 96.961 2,466,461 1 .007,644 11367,818 294 Total Goneral Fund Direct $31321,765 3.829_884 35,351,649 23,280307 _ 9 n53 ilh 132,665 Costs 16 13TY OF HUNIINGTON BLACH GENERAL FUND EXHIBIT E STATEMENT OF APPROPRIATIONS, EXPENDITURES AND FNCUMBRANCES YEAR ENDED JUNE 30, e979 Encumbrances Total Excess of Appropriations Percentage Outstanding Expenditures and Over (Under) Expenditures of Appropriations Encumbrances Encumbrances and Encumbrances _ llsad i ! 37,463 51980 86% 143,782 4,687,607 1 ,137.568 83 53.677 1 ,022,761 2,289 100 8,744 52367 3,820 93 206,203 5,800,398 1049,657 F4 ;5,589 558,813 98,372 a5 108,890 1 ,186,114 45,135 96 60,584 1,690,004 77,545 96 _ 412,936 4,950,040 56,767 99 597,999 8,384,971 277,319 97 i 66,536 2s 824 (2 600) 100 ,53 5,7 , 204.825 91365.975 145,785 98 29,834 1,125.693 46,656 96 6,767 796,933 65,277 2 307,962 17,017,425 254,918 08 10,374 1,363,293 34.430 97 3,413 377,366 (462) 10C 1 ,442 108,789 2,405 98 167 1gg4016 25,�484 88 j 600 348:288 12,852 96 1 15.996 2,391 .752 ?4,709 97 1 ,128.160 33,554r546 1 .757,103 25% { 17 . 1 . CM OF HUNnNGTON BEACH GENERA:. FUND - STATEMENT OF AP^ROPRIAT10N5, EXPCNDITUPSS AND ENCUMBRANCES YEAR ENDED JUNE 30, 1979 Approprlations Expenditures 3 Pars nal Maintenance 3 Original Remised Services and Capital Budget — Ch:,n..-a _ Budget Cost Operation Outlay y� Total General Fund direct costs 31 ,521 ,7C5 3,829.884 35.351 ,649 23,280,,,507_ 9,053,214 132,665 See accompanying notes to fin&nciai statements. 0V 1a Cr"OF HUM'llTriGTIDM MACH — GENERAL FUND EXHIBIT E. Continued STATENENT OF APPROPRIATIMS, EXPENDITURES AND ENCoIIiBR Krs YEAR ENDED JkNE 30 1979 Encumbrances Total Excess of pprt,.. !ations Percentage Outstanding Expenditures and Over (Under) Expenditures of Appropriations neumbrances Encumbrances and Encumbrances Used 33,194,546 1,757003 95% l s i 19 i . ' CITY 4F H1UH'!l NGTON BUCK SPECIAL REVENUE FUNDS COMMUED P.ALAKE SHEET JUNE 30, 1979 s .f Special Library 1...ta1 .Ws Tax Service Sewer Assets Cash and term deposits S 10.459,769 2,03,1,123 2.057.394 Accounts receivable, net 1,512 1 ,512 Interest receivable 230,706 68,809 59,563 Due from other governmental units, net 2.023,448 984,556 Due from other funds 505,136 4.404 491,000 $ 13,220 570 3088.892 - 2,60,469 1 Liabilities. Reserves and Fund Balance Liabilities: Cash overdraft $ 922,491 Accrued pay.oli 74 674' Accounts payable 260,478 Deposits 1,548 1,035 Due to other funds 573,714 1,563 Deferred revenue 14,960 14,960 Total liabilities 1,847,863 1,035 - _ 16,523 j Encumbrances outstanding 2,586.855 1 ,443,494 34,631 Reserves: Other 78,226 Total reserves 78,226 - - - Fund balance (deficit) Unappropriated 8,572,681 1.644,363 _ 2,558,315 Appropriated - developer deposits 134.945 total fund balance 8,707,626 1,644,363 2,558.315 See acco an to notes to financial 13,220, 8g2 2,649,46 � Y� 9 S 570 statements. _ ! WY OF HUNMGM BEACH SPECIAL REVENUE FUNDS EXHIBIT COMBIKED BALANCE SHEET ' JUllE 30, la79 Park Planned Federal Federal Acquisition Local Revenue Manpower Other any Traffic Psrkinq Drainage Sharing Grant Grants Development Safety Meter 2,244,684 1 ,550,355 2,576,212 45.333 42,490 14,511 858,9: 103,808 76,150 5,990 3,742 2,296,007 1 .596,587 858,934 103,808 2.590.723 76,150 - l r . 821 ,897 40159h 71 ,197 3.475 2 7,440 199.782 32,245 11011 513 491 ,000 5,001 76,150 491,000 27,440 1,092,876 1;E ,314 6,525 76,150 _ ii 161 ,371 633,219 314,140 1 226 a 3 47* � 31,226 - - - 4 000 - - 1 ,477,465 935,928 (233,942) (32,506) 2.223,058 )34,945 1 ,612,410 935,928 (233,942) 132.06) 2,21 03. 58 _ 1 - 2 296 007 11596,587 858 934 103,808 = 2.590.723_ 76 0 - I t J CITY OF Hilt' IaNGTON BEACH SPECIAL REVENUE FUNDS COMBINED STATEMENT OF CLANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1979 Sp,ecial Civic Equipment Library Total Gas Tax Imerovement Replacement Service Fund balance (deficit) at July 1, 1978 S 9,662,695 3,028,697 592,074 500,065 Additions: Excess (deficiency) of revenues over expenditures -1nd encumbrances (1 ,183,622) (1,430.841) Cancellation of July 1 , 1978 reserve for encumbrances 1 ,308,595 46,507 Transfer from general fund 211859 Total fund balance and additions 9.809,327 1 ,644,363 592,074 500,065 - 1 Deductions: Transfer to capital proiects fund 500,065 500,065 Transfer to generai fund 601 ,636 592,074 Fund balance (deficit) at June 30, 1979 $ 8,707.4%-26 1 ,644,3G3 - - - See accompanying notes to financial statements. r i 22 QTY OF HUPiMNGTQf1 BEACH SPECIAL REVENUE FUNDS EXHIBIT G WMBINED STATEMENT OF CHANGES IN FUND BALAN6E YEAR ENDED JUNE 30, 1979 • ' ' Park Planned General Federal Actuisition Local Revenue Manpower Other and Traffic Parking Sewer Drainage -Sharing grant Grants Development Safety Meter 2,118,013 1 ,624,517 645,521 (117,394) (66►090) 1,337.292 424,466 (73.639) 27.991 (152,997) (62,120) 83,318 15,836 61 ,532 271,97h 36,449 73,845 802,448 21.859 2,558.315 1 .612,410 945,490 (233,942) (32.506) 2,223,058 9,562 2.558.315 1 ,612,410 935,928 (233.942) (32,506) '.223,058 - - 1 I 23 CM OF HUMNGTON BILACH SPECIAL REVENUE FADS EXHIBIT H SPECIAL GAS TAX STA EMENT OF REVENUE, EXPENDITUREt AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED .TUNE 30. 1979 � Budget Actual i -ur.gin ev Budget Change Budget Cxpenditures Encumbrances 7o;al Revenue: "'--' Interest income S 160,000 160,OG0 293,679 State tax: Section 21C7 755,000 755,000 740,462 Section 2107.5 10,006 10,000 10,000 Section 2106 8?0,000 870,000 From Federal government 515,500 515,500 From State of California - 1 .017,387 F roai Orange County 909,500 909,500 Fran other municipalities 16.200 16,200 From other funds 91700 9,700 From developars 81,000 8,004 Total revenue 3,253,900 - 3,253,900 2.908.659 Expenditures and encumbrances: Transfer to general fund 755.000 755,000 740.462 740,462 ! ' Capital outlay: Traffic signals 1 ,166,400 2,442 1,168,842 794,815 242.439 1 ,037,254 Street Improvements 2332,500 9,875 2.742,375 462,336 1.085.094 !,547,430 Drainage 955,000 955,000 881,663 85.090 966,758 i Engineering 6.550 6,550 5.7E0 79C 61550 Other 27,640 27,640 11 ,001 30,045 41 ,046 Total expenditures and encumbrances 5,608,900 46.5o7 5,655,497 2,8363042 1,443.458 4.139.500 i Excess (deficiency) of revenue aver expenditures and encumbrances '*' 2,1SS,00O1 f46,S071 f2 A01,5071 Q A30.8hiL See ancompanving notes to financial statements. ___"" 24 CITY of HUMNGTON BEACH --- SPECIAL REVENUE FUNDS EXHIBIT la CIVIC IMPROVEKENT FUND • STATEMENt OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR LADED JUNE 30, 1979 Budget r Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: Interest income $ 50,000 (50,000) -0- Utility tax - water 200,000 (200,000) -0- Utility tax - gas 500,000 (500,000) -0- Utility tax - telephone 1 .000,000 (1 ,000,060) -0- Utility tax - electricity 1,580,000 (1,580.000)_ -0- Total revenue 3,330,000 (3,330,000) - ! Expenditures and encumbrances: Transfer to General Fund 2,076,100 (2,076,100) -a- Civic Center lease 354,900 (854,900) -0- Library lease 399,000 (399,000) -0- _ Total expenditures and encumbrances 3.330,000 (3,330,000) ! Excess of revenue over expendi- tures and encumbrances $ i I i Sec accompanying notes to financial statements. f 1 �5 F CITY OF HUNMNGTCN BEACH t SPECIAL REVENUE FUNDS EXHIBIT Ib LIBRARY SERVICE FUND STATEMENT DF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 Budget Actual Original Remised Budget Change Audget Expenditures Encumbrances Total _f Revenue: Library Service Fee 5 130t0OO 130,000 88,198 Total revenue 130,000 - 130,000 88,198 Expenditures and encumbrances: Transfer to Ceneral Fund 130,000 130,000 88,198 - 8$,198 Excess of revenue over expenditures and encumbrances S - - - f See accompanying notes to financial statements. f ' i i 26 i � CH CiZ`Y OF HUI�I'LZP1G'1'+HIV Bel SPECIAL REVENUE FWDS EXHIBIT J i SEWER FUWn STATEMENT OF REVENUE, EXpENDI)_ ._; AND E.4C"RANCES BUDGET AND ACTUAL YEAR ENDED •TUNE 30, i 979 _ Budget actual original Revised Budget Change _ 1ludget Expenditures Encumbrances To7r.,1 r :venue: Interest income $ 95,000 95,000 205,302 Sewer permits 14G,000 140,000 67,171 local assessments 80,000 80.000 29.872 Warner Avenue relief sewer _ 290,223 Total revenue 315,000 �_ 315,000 , . Expenditures avid encumbrances: Sunset Beach Sanitary District 5-5q9 5.549 35,050 35.050 Pump Station improvements 31 ,759 31 .759 13.923 11 ,647 25,570 Remote transmitter 1,887 1 ,887 1,887 1.88i Michael Drl )e storm drain 17,673 17,673 4,879 12,793 17,672 Master plan of sewers 55,000 55.000 41.376 8,303 49.679 Huntington Street sewer 13,000 13:000 39 39 Hain Street trunk sewer 2,725 2,725 2.697 2,697 Warner Avenue relief sewer 11 .062 11 ,062 30,139 30.139 Other 470,000 (122,819) 347OIBI 5.369 5.36g Total expenditures and 1 encumbrances 470,000 _ 15,836 4853836 133.472 34.630 168,102 Excess (deficiency) of revenue over expenditures and encumbrances $ 0 55,000) (15,836) (170,836} 424.466 See accow anying notes to financial statements. 27 i CITY OF HU141UNGTON BLACH SPECIAL REVENUE FUNDS EXHISIT K PLANNED LOCAL DRAINAGE rUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUNRANCES BUDGET AND ACTUAL -� YEAR ENDED JUNK 30. 1979 B"get Act") Original Rev sad Budget Change Budget _ Expenditures Encumbrances Tote Revenue: Interest Income $ 120,000 120.G04 219,140 Local assessments 700.000 700,000 , 370,224 Total revei,ue 820,000 - 820,000 589,364 i Expenditures and encumbrances: Channel lining - Slate- 175,00,C (45;000) 130,000 115,082 12,800 127.882 Pump Station 88 - Atlanta - 75,557 75,557 72,597 72,597 Delaware SD - Phase 2 - 46,10", 46,109 1 ,9k2 39,012 40.954 Michael Drive Storm Drain - 81 ,6 = 81 ,672 76,853 3,147 80,000 Storm Drain Master Plan - 50.00 50,000 41,252 7.945 49197 0 137,239 NG Engine/Pump/Gear/Drive 175,000 (35.000) 140,000 52,772 84,467 Gothard/Talbert Storm Drain 300,000 (285,500) 14.540 42 14,000 14.042 Other - 173.694 173,694 141 ,092 141.092 Total expenditures and encumbrances 650,000 611532 711.532 501,bsZ la11Z71 663,003 Excess (deficien .y) of revenue ever expenditures and encum- brarices $ 170,400 61 1 1t�8,4b$ (?3_ See accompanying notes to financial statements. 1 i I� I f i 28 i CITY OF HU1'MNGTGN WACH SPECIAL REVENUE FUNDS EXHIBIT L is GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE. EXPENDITURES AND ENCUMBRANCES + BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 audgEt _ Actual Original ev se Budget change Budg; t Expenditures Encumbrances Total Revenue: Interest income S 45,000 45,000 148,438 F.deral revenue sharing 1 ,430,000 1,430,000 1 ,093,610 General revenue sharing-Title 11 9,562 9.562 3,562. Other 434 i Total revenue 1 ,4751000 9,562 1 .484,562 _ 1L2S2,044 f Expenditures and encumbrances: Fire equipment 104,14o iO4,140 32.871 43.993 76,864 Fire paramedic equipment 19,426 19,426 6.29; 13,139 19,434 Fire vch!c!es 201 ,422 (26,301) 175,121 69,068 101 .122 170,190 Fire building improvements 2,000 2,000 2,000 2,000 Police equipment 148,674 148,674 39,521 39,521 1 rolice vehicles 537,528 [ y2r) 180,103 20.390 155,901 176,291 } Police heliport R 0U 247.600 14,424 14,424 Public Works equipment 60,19r 80.190 27,577 125 27,702 Public Works vehicles 180,035 3:,0%,035 iQ�1 , 2 4g, � 151 ,173 ! Public Works shamei ash 106,767 106,767 �'+. 5 39, _t 104,412 Pudl is Works heavy equipment 128,S56 128,656 20,724 20,724 Public Works traffic equipment 5,500 5,50 5,500 5,500 Public Works street 10,500 10,500 7,500 7,500 Public Works other 453,671 (225,261) 228,410 29,658 28,150 57,R08 Library books 751000 75,000 14,736 60.305 MOO Library security system 12,000 12,000 262 il ,99D 12,252 Library modification 29,000 29,000 989 6,451 7.44( Library materials 44,865 44,865 38,462 5,201 43,663 Library equipment 272,878 (1 4, 4 ) 148,6,8 ROM equipment 2, 1 42,614 3,093 7,846 10,539 ` 148PsR human sarfices 284,914 (218.339) 66,575 - _ .._. 29 i J CITY OF HUNnNGTON KAM SPECIAL REVENUE FUNDS EXHIBIT L, Continued GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUPIBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 I E..deer Ac qua' Original Revised Budget Change _ Bud ecett _ _Expenditures Encumbrances Total _ (Expenditures and encumbrances, cont.) H8PSR Senior Center 2,980 2,980 2,526 2,526 HBP&I; Pay 26,320 26,320 19,506 ' 1915 26,421 HBP&R Dock 49,000 0,000 82 82 HBP&R Pier 236,380 (181 ,380) 55,000 23,632 31 .950 55,582 HBP&R vehicles 19,900 19,900 12,317 763 13,080 HSPSR parking lot 31 ,680 31,680 23,437 8,243 31,680 Data Processing equipment 73,358 (15,365) 57,993 715 23081 23,8 6 Office equipment 5,860 15,347 21 ,207 7,907 4,362 12,2 9 Vapor recovery system 18,275 18,275 181 181 Miscellaneous capital items 91 ,412 746 92,158 1 ,483 550 2,033 Transfers to general fund 2,562 9.562 _ 33,425 33,E+25 j Total expenditures aAd encumbrances 2,157,423 262,466 2,1E19�,889 590.834 633,219 1 ,224,053 Excess (deficiency) of revenue over expenditures and encum- brances S (682,423) (252,904) (935.327) (27.991) .,ce accompanying notes to financial statements. 30 CITY OF HUM7INGTON REACH SPECIAL REVENUE FUNDS EXHIBIT H l FEDERAL MANW)WER GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED .TUNE 30, 1979 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances T:'—:' Revenue: Title I program $ 78„000 789,000 6 + pp1�0 Title It program 175,000 175.000 3i;4 9 Title. VI program 1 ,157,000 1,157,000 1,836,907 1 Summer Youth program 196,259 Other 1 ,261 t Total revenue 2,121 ,000 - 2,121,000 2,632,936 t Expenditures and encumbrances: CETA Title I program MAW 4,173 793,173 450,958 450,258 CETA Title I ! program 175,000 23,692 198,642 575,355 575,355 CETA Title VI program 1 ,157,000 8,584 1 ,165,584 1 ,759,620 W59.620 Total expenditures and encumbrances 2,121,000 36,449 2,157,449 2.785,933 - 2,785,933 Excess (deficiency) of revenue over Iexpenditures and encumbrances S (_;6.4491 (36.449} 152,992 I ESee accompanying notes to financial statements. i � # 31 I - CITY OF NUNMNGTON BEAM SPECIAL REVENUE FUNDS EXHIBIT N OTHER. GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: National Science Foundation Circuit Rider S 6,750 Juvenile Diversion/Treatment ' 128,000 128,690 253,204 t County Revenue Sharing 57,561 57,561 iJ Housing and Community Development 1 .259.000 1 ,259,000 665.757 LC? Grant ••35,COO 35,000 28.373 SET Grant 48,568 48,568 :31932 Robbery Suppression and Apprehension 35.000 35,000 130:015 i Orange County - Public Docks 35,000 35,000 26,835 Delinquency Program 24,86; Other 6,224 Total revenue 1 .598.129 - 1.598.129 _ _ 1,327 338 Expenditures and encumbrances: EDA Grant 35,553 35,658 26,776 26,776 National Science Foundation f Circuit rider 3,860 3,860 i Juvenile Diversion/Treatment 128.000 (82,922) 45,078 293.860 293,860 Bike Trails 2,823 2,823 2,716 2,716 Housing and Co.-nunity Development 1 ,249,000 1,134,134 2.383,134 673,022 673,022 SET Program 48,568 14,524 63,092 162,317 162,317 Robbery Suppression and Apprehension 35,000 111,110 146,110 133,050 133,050 LCP Grant 35,000 128,265 163,265 27,165 27,165 Seniors Outreach 1977 4,990 4,990 4,588 ,see Seniors Outreach Program 53,530 53,530 62,104 62,104 I Total expenditures and encumbrances 1 ,495,568 1 ,402,112 2,897,680 1 ,389,458 - 1.389 45b Excess (deficiency) of revenue over expenditures and encumbrances S 102,561 (1 .402�112} {1,299,5513 (62,1201 See accompanying notes to financial statements. 32 _1 CITY OF HUNMNGTQM BEACH SPECIAL REVENUE FUNDS EXHIBIT 0 PARK.ACQUISITION AND DEVELOPMENT FUNA STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised Budget Change _ Budget Expenditures Encumbrances Total Revenue: I Interest income $ 90,000 90,000 180,583 1 Subdivision license fen 800,000 80o,000 849.107 Unit lot fee 500,000 500,000 115,226 Rental ;ncome 5,204 From Orange County _ 50,000 Total revenue 1 ,390.000 - jj390,000 1 ,200,120 ,I t Expenditures and encumbrances: Park improvements: Old Town 74,565 74,565 75,412 75,412 s Hain Street 256 256 172 172 Goldenwest Fields 14,i40 14,140 14,M 14,i4i, Murdy Park 1 .456 1 ,456 215 215 LeBard Park 65 65 38 38 Perry Park 3,249 3,249 3,144 173 3,317 Gisler Park 4,065 4,065 3,722 3,722 Eader School Park 281 281 281 281 Central Park 162,680 162,68o 22,893 127,800 150,693 Oak.View Park 30 30 30 30 Huntington Harbor Park 226 226 226 226 Chris Carr Park 858 85P Marina Park 573,865 573,865 494,687 77,490 572.177 College View Park 35 35 77 77 Seabridge Park 1 ,285 1 ,285 1 ,052 1 ,052 • Edison Community Park 1,583 1 ,583 1 .556 1,556 Arevalos Park 195 195 168 168 Pleasant View Park 17,304 17.304 8,W 6,510 15,448 Hawes Park 26,299 26,299 19,490 6,800 26,290 Sunset Heights $ 150,000 (149,450) 550 - r- ( 33 . J ----- CITY OF HUNTING'i'ON BEACH SPECIAL REVENUE FUNDS EAHIBIT 0, Continued PARK ACQUISITION AND DEVELOPMENT FUND •STATEMFNT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL • YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised Budget Change Budget -Expenditures Encumbrances Total (Expenditures and encumbrances, Cont.) Taylor Park S len,614 160,614 124,370 34,323 158,693 Davenport Mini Park 201 2OI Haven View Park 35 35 67 67 I Robinwood Park 20,831 20,831 13,875 5,100 18,975 Newland Park 30,669 30,669 19,903 C,910 23,813 Talbert Park 100 100 104 104 Lutheran Park 70,000 (60,000) 10,000 10,000 10,000 1 Lambert Park 60,000 (59,965) 35 161 161 ! Appraisals 407 407 Park signs 9,800 9,800 930 2,968 3,898I Landscape architect 50,000 50 50,050 7,412 43,537 50,949 Bike trails 1 ,887 1,887 Recreation center 935 935 936 936 Other 60O,ODO (34,637) 565,363 (22,492) 218 (22,274) ' Total expenditures and encumbrances 930,000 302,448 1 ,732,448 802,662 314,140 1,116,802 j Excess (deficiency) of revenue over expenditures and encumbrances $ 460,000 -$02,448) (342,448) 83,318 See accompanying notes to financial statements. 34 CITY OF HUNIINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT P f TRAFFIC SAFETY FJND STATEMENT Or REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL. YEAR ENDED JUNE 30, 1979 Budget _ Actual i Original Revised � . Budget Change Budget Expenditures Encumbrances Total Revenue: _ Traffic fines $ 54o. 000 545,000 781,42S Tonal revenue 540,000 - 5401000 781,425 Expenditures and encumbrances: Transfer to General Fund 540,000 - 540,000 781 ,425 - 781 ,425 Excess of revenue over expenditures and encumbrances p $ - - - - I l See accompanying notes to financial statements. ( 35 . I CITY OF HUNTINGTON BEACH SPEC!AL REVENUE: FUNDS EXhiBIT Q PARKING METER FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised +� Budget Change Budget Expenditures Encumbrances Total Revenue: ' Parking meters: Commercial $ 18,000 18,000 14,869 Residential 12,003 12,000 12,851 Pacific Coast Highway 125.000 114,218 Total revenue 155,000 — 155,000 141,933 i Expenditures and encumbrances: ! Transfer to General Fund I55,000 — 155,000 141 ,938 — 1411938 I Excess of revenue over expenditures and encumbrances s 1 See accompanying notes to financir.1 statements. . i 1 36 _� CITY 4F HUN71NGT©N BEACH tt 1,,TERNAL SERVICE FUND - SELF INSURANCE EXHIBIT R i BALANCE SHEET .TUNE 30, 1979 o - Assets Current assets: Cash and term deposits $ 3.306,159 Interest receivable 47,728 S 3,353,887 Liabilities and Retained Earnings Current liabilities: Due to other funds $ 3,458 Accrued payroll 702 Accounts payable 12,209 Liability insurance claims 552.280 Workmen's compensation claims 570,928 Total liabilities 1 ,139,577 Retained earnings Appropriated for future insurance claims 750,000 Unappropriated 1 ,464,310 Total retained earnings 2,2 A,310 $ 3,353.887 1 See accompanying notes to financial statements. 37 -- — — - CITY OF HUhiTINGTUN BEACH INTERNAL SERVICE FUND - SELF INSURANCE EXHIBIT S � STATEMENT OF REVENUE, EXPE::'.E AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1979 Sevenues: Workmen's compensation contributions from other funds S 860,443 Liability contributions from other funds 765,824 Interest income 209,597 Total revenues 1 ,835,864 Expenses: Liability insurance claims 552,280 Workmen's comoensation claims 298,305 Contractual services 219,808 Disability payments 111 ,571 Personal service cost 23,781 Travel costs 493 Insurance 6,088 Other 574 Total expenses ) ,2)2,900 Net income S 622,964 Retained earnings at July 1 , 1978, as previously reported S 1 ,019,297 Add: Net income 622,964 I Amount recl-i^sified from reserve 572,049 Retained earnings at June 30, 1979 S 2.214,310 See accompanying notes to financial statements. 38 r -- C1Ty or;IUN77NGTON BEACH INTERNAL SEK.CE FUND - SELF INSURANCE EXHIBIT T STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30. 1979 Sources of Working Capital: Current operations: Net income S 622.964 Increase in working capital $ S221964 Changes in Components of {.forking Capital were as follows: Increase (decrease) in current assets: Cash and term deposits $ 1 ,401 ,603 Interest receivable 41 ,582 Due from other governmental agencies (',127) Total increase In current assets 1 ,442,058 Decrease (increase) in current liabilities: Due to other funds (3.458) Accrued payroll (331) Accounts payable (12.19; Liability insurance claims (523.455) Workmen's compensation claims (279.557) Total increase in current liabilities (819.094) Increase in working capital $ 622,964 f - See accompanying notes to financial statements. I J . 39 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS -EXHIBIT U C04BINED BALANCE SHEET JUNE 30. 1979 • 1955 dater Bond 1970 Park Bond J Interest and Interest and Total Redemption Fund Redemption Fund Assets Cash and term deposits $ 52,526 52,526 Due from other governmental units, net of a' lowance for delinquent property taxes 19,102 1,416 17,656 $ 71 ,628 53,942 17,686 Liabilities and Fund Balance (Deficit) Liabilities - cash overdraft $ 12,348 - 19,348 Fund balance (deficit) 52,220 53,942 (1,662) $ 71,628 53,942 17,686 See accompanying notas to financie' s`atements. I i M _ 40 ■ CITY OF HUNT1NGTON BEACH •DEBT SERVICE rUNDS EXHIBIT V •COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE + YEAR ENDED JUNE 30, 1979 1955 Water Bond 1970 Park Bond Interest and Interest and Total Redemption Fund Redemption Fund Fund balance (deficit) at July 1 , 1978 S _33,407 51,965 _0 8,558) Revenue: Property taxes 523.619 .8,828 484.791 Total revenue 523,619 38,$28 484.7a1 Expenditures: Redemption of matured bonds 210,000 35,000 175,000 Interest an bonds 294,187 1 ,750 292,437 Other 559 101 458 Total expenditures 504,746 36,851 467,895 Excess of revenue over expenditures 18,873 1 ,977 16.$96 Fund balance (deficit) at June 30, 1979 $ 52,280 53,942 See accompanying notes to financial statements. f � 41 It i CITY OF HUNTING:ON BEACH CAPITAL PROJECTS FUNDS EXHIBIT W 'ONBINED BALANCE SHEET JUNE 30, 1979 Special 1955 Water Capital Bond Total _ Outlay Construction Assets Cash S 624,614 547,304 77,310 Interest receivable _ 21 ,009 21,00$ Due from other entities 4341 4,341 649.964 572,654 77.310 Liabilities, Reserves and Fund Balance Encunbrances 2,662 2,662 Unappropriated fund balance 647,302 569,992 77,310 S 649,964 572,654 77,310 See accompanying notes to financial statements. i 1 42 i { t --- CITY OF HEMNGTON BEACH ; CAPITAL PROJECTS FUNDS -EXHIBIT X COMBINED STATEMENT OF REVENUE, EXPENDITURES, ENCUMBRANCES AND FUND BALANCE YEAR ENDED JUNE 30 1979 Special 1555 Capital Bond Total Outlay •Constructiion Fund balance at July 1 , 1978 $ 77,310 - _�.7.3:0 Revenue: Interest revenue 69,921 69,921 Cancellation of July 1 , 1978 reserve for en- cumbrances 5,093 5,093 j Transfer of Equipment Replacement Fund Balance 500.065 _500,065 Total revenue 575,079 575,079 Expenditures and encumbrances 5,087 5.087 Excess of revenue over expenditures 569.992 569.992 - } Fund balance at June 30, 1979 S 647,302 569.992 77,310 i i See accompanying notes to financial statements. -- 43 CITY OF HUNMNGTON BEACH EA TERPRISE FUNDS EXHIBIT Y COW NED BALANCE SHEET JUNE 30, 1979 Water � r� U;i1Ity Meadowlark Golf Total Fund Course Fund Assets Current assets: ' - Cash and t:.rm deposits $ 3,7011036 3,625,239 75,707 Accounts receivable: � Trade, net of allowance of $17,143 280,269 2$0,269 Deposits Other 17,315 17,315 Interest receivable 32,269 32,269 76,507 75005 1 ,401 Due from other funds 15,179 15,179 Total current assets ,122,5757,045,377 77i99 i .:; Property, plant and equipment, net of allowance F:A for depreciation 25,960,710 22,829,910 3,130,800 Assets restricted as to use - cash with t fiscal agent 357,2$6 357,286 r: $ 30',440,571 27,232,573 3,207,998 =' r See accompanying notes to financial statements. -. r y t t 44 1 CITY OF NUN77NGT3N BEACH ENTERPRISE FUNDS EXHIBIT Y, Continued COMBINED BALANCE SHEET a =" JUNE 30, 1979 (`` Water V f-�- Utility Meadowlark Co l f Total Fund Course Fund Liabilities, Reserves, Contributions and Retained Earnings Deficit ` Current liabilities ',payable from current assets) : Accounts payable $ 885,108 885,108 - Customer deposits 245,239 245,239 Accrued interest payable 46,325 46,375 t= - . Accrued expenses 19,832 19,832 '�£; . Current installment of long term note payable 15,763 15,763 t`yam i (note 7) ! '- 1 Current installment of bonds payable (Note 6) 130,000 130,000 ._. Current liabilities (payable from restricted assets) : :rti Matured interest payable 20,062 20,062 Accrued interest payable 14,925 14,925 Total current liabilities 1 ,377,254 1 ,315,166 62,088 Long term note payable, net of current installment (Nr,ce 7) 1 ,901 ,910 1 ,901 ,910Y Bonds payable in future years net of current install- 4 � ment (Note 6) 2,030,000 2,030,000 Total liabilities 5,309,1 3,3+5 166 1 ,963,998 Reserve for revenue bond retirement 194.924 194,924 - _ + Contributions: 1n aid of construction 15,121 ,693 15,121 , 693 From general fund 1 ,359,932 92,608 1 ,267 324 Total contributions 16,481 ,625 15,21 ,301 192 7 32 = _0. l Retained earnings (deficit) 8,454,858 1 K (23,324) _ :_�:: �4 30,440,571 27,232,573 3,207,998 _ 45 _.. CITY OF 11UP477NGTON LEACH WATER UTILITY FUND EXHIBIT 2 STATEMENT OF REVENUE AND EXPENSES t YEAR ENDED JUNE 30, 1979 Operating Revenue: Metered water sales $ 4,926,624 Municipal grater sales 126,990 F'.re hydrant rentals 61 ,478 Acreage fees 16,838 Tract fees 43,2-6 New services 46.252 Other water services 46,595 Total operating revenue 5,168,003 Operating Expenses: Source of supply 7C3,280 Pumping expense 1 ,167,138 Water treatment 25,630 Transmission and distribution 312,619 Administrative and general 691 ,906 1 j Contributions to general fund in lieu of taxes :49880 Depreciation 650,000 Total operating expenses 4,299,4s3 Operating income a68,550 Nonoperating Income: Interest income 329,310 Other 42,578 Total nonoperating income 371 ,888 Total operating and nonoperating income 1 240, 3 Nonoperating Expense Bond interest- 89,633 Other 4,338 Total nonoperating expense 93,971 • Net income $ financialSee arrnmpanxing natcs to 46 CITY OF HUN71NGTON BEACH WATER UTILITY FUND EXHIBIT AA f STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1979 Retained earnings at July 1 , 1978 $ 7,331 ,715 i Add: Net income 1 ,146,1167 Total balance and additions 81478,182 I , Retained earnings at June 30, 1979 $ 8=478,182 I See accompanying notes to financial statements. �I I 47 1� 1 CITY OF HUMINGTON BEACH WATER UTILITY FUND -EXHIBIT BS STATEMENT OF CHANGES IN FINANCIAL POSITION ¢ • YEAR ENDED JUNE 30, 1979 Sources of Working Capital : Current Gperations: Net earnings $ 1 ,146,467 Items which do not require an outlay of working capital : Depreciation 650,0Q0 Working capital provided from operations 1,796,467 Increase in reserve for revenue bond retirement 19,672 Total working capital provided 1 ,816,319 Disposition of Working Capital: Additions to fixed assets 1,175,918 lncrea,e in assets restricted as to use - cash with fiscal agent 30,089 Dicrease in long term bonds payable i45,00n Total working capital used 1 ,351 ,007 t Increase =n working capital $ 465,132 CFanges in Components of Working Capital were as follows: Increase (decrease) in current assets: + Cash and term deposits $ 731,166 l Accounts receivable, trade (net) 23,561 Accounts receivable, other (net) 9,i17 Interest receivable 66,727 Due from other funds 150',.3 Total $ _ 846,350 48 i CITY OF HUNWNGTON BEACH WATER UTILITY FUND EXHIBIT B8, Continued STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1979 Changes in Components of Working Capital , Continued Decrease increase in current liabilities: Accounts payable S (278,972) j Customer deposits (82,440 i Accrued expenses (6,763) Accrued interest payable 650 Fatured interest payable (3,692) Increase in current installment long term debt (10,000) Total (381 ,2i8) Increase in working capital S 465.132 See accompanying notes to financial statements. I t 49 CITY OF HUNUNGTON BEACl; -- _• MEADOWLARK GOLF COURSE FUND EXHIBIT CC STATEMENT OF REVENUE AND EXPENSES YEAR ENDED JUNE 30, 1979 i Revenue: Lease revenue $ 150,000 Interest income 4,725 Total revenue 154,725 Expc,;d 1 tures: Interest 135,268 Depreciation 15,760 Total expenditures 151 ,028 tlet income ? 3,697 See accompanying notes to financial stptements. i 50 CITY OF BUNnNGTON BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT DD STATEMENT OF CHANGES III RETAINED DEFICIT YEAR ENDED JUNE 3011 1979 I , Retained deficit at July 1 . 1978 $ 27,021 Add: Net income 3*697 Retained deficit at June 30, 1979 $ �3•324 1 1 See accon,aanying notes to financial statements. i 51 CITY OF HUN71NGTON BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT Ei STATE:1ENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1Q79 Sources of Working Capital : Net income $ 3,697 Items which do not require an outlay of working capital Depreciation 15,760 Working capital provided from operations 19,457 Disposition of Working Capita: : Payment of principal portion of notes payable 15,763 Increase in working capital $ _ 3,694 Changes in the components of working capital were as follows: Increase in current assets I Cash 3,324 li Accounts receivable 1 ,360 Due from general fund 41 Total increase in current assets 4,725 (increase) Decrease in current liabilities: 1 ' Increase in current portion of notes payable (1,030 Total increase In current liabilities _ (1 .031) Increase in working capital $ 3,694 1 See accompanying notes to financial statements. i 52 0 CITY OF HUNTINGTON REACH i TRUST AND AGENCY FUNDS EXHIBIT FF COMBINED BALANCE SHEET JUNE 30, 1979 j Employee Special Deferred Improvement Total Deposit Compensation Act Assets Cash and term deansits S 1 ,269.497 220,94Q 1 ,042,113 6,444 } dotes re::_,vable 52,788 52,788 � 1 Total assets $ 1 ,322,285 220,940 1 ,094,901 6,444 Liabilities and Fund Balance Liabilities: Refundable deposits $ 220,940 220,940 Bond principal and interest payable 6,444 6,444 ITotal liabilities 227,384 220,940 - _ 6,444 Fund ba;ante 1 ,094,901 - 1 ,094,901 - I $ 1 ,322,285 22O 940 1.094,901 6,444 j See accompanying notes to financial statements. 53 CITY OF HUN71NGTON BEM11 TRUST AND AGENCY FUNDS EXHIVIT GG COMBINED STATEMENTS OF REVENUES, EM17DITURES, AND CHANGES 14 FUND BALANCE ; YEAR ENDED JUNE 30, 1979 ' Employee Special Deferred Improvement Total Dgposi t Compensation Act Fund balance at July 1 , 1978 $ 842,218 - 842,218 - Add: Interest earned 85,751 85,791 Contributions received 207.457 207,457 Total additions and fund balance $ 1 ,135,466 - 1 ,135,4t6 1 i Less: i ?aid to participants in employee deferred compensation plan 40,565 40,565 Total deductions 40,565 - 40,565 Fund balance at June 30, 1979 $ 1 ,094,901 - `1 ,094,901 - � I i See accompanying notes to financial statements. 54 ` CITY OF HUNTINGTON BEAM ------- NOTES T8 FINANCIAL STATEMENTS JUKE 30, 1979 h 1 1 ' Note 1 Summary of Significant Accounting Policies Description of Funds and Account Groups i The basic accounting and reporting entry in government is a "fund." A fund is defined as an independent fiscal and accounting entity with a self-balancing se' if accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special rcg0 ations, restrictions or limitations. Because a clear distinction should be made between the accounts relating to current assets and liabilities and those related to fixed assets and long term liabilities, a self balancing "group of accoants" !. utilized. The types of funds and account groups used and their � respective definitions are as follows: Funds aj The General Fund - to account for the_ City's ordinary operations which are financed from taxes and other general revenues and to account for all financial transactions not properly accounted for in another type of fund. b) Special Revenue Fundy - to account for the proceeds from specific revenue sources {other than special assessments) or to finance specified activities,as required by law or administrative regulation. i c) internal Service Funds - to account for financing and providing goods and services by one department to other departments of the City. d) Debt Service Funds - to account fer the payment of interest and principal of general obligation long 4 e) Capital ProjectFunds - to account for the financial resources used for the acquisition of capital facilities other than those financed by special assessment and enterprise funds. f) Enterprise Funds - to account for the financing of services to the general public where all or most of the costs involved as-a financed through charges to users of such services. l g) Trust and Agency Funds_ - to account for resources held by a governmental unit as trustee or agent for individuals, private organizations, and other governmental units. Account Groups a) General Fixed Assets Group of Accounts - to account for the general fined assets of tF- City other than those accountea for in the enterprise or trust funds. h) General Lonq Term Debt Group of Accounts to account for the general obligation ionG term debt of the City.. - 55 I . I CITY 4F HUN'TIlNGTON BEACH � NOTES TO FINANCIAL RTATEMENTS, Continued Note 1 Summary of Significant Accounting Poiic:es, Continued • Basis of Accounting t The accrual basis of accounting is followed for enterprise, internal service fund, and trust and agency funds. The accrual basis of accounting is defined as that basis of accounting under which revenues are recorded wnen earned and expenditures are recorded as soon as they result in liabilities for benefits received, not withstanding that the receipt of the revenue or the payment of the expenditures may take place, in whole or in part, in another accounting period. The modified accrual basis of accounting is folloticd for the general , special revenue, debt service and capital project funds. The modified accrual basis of accounting ;s defined as that basis of accounting under which expenditures other than accrued interest on general long-tarm debt are recorded at the time liabilities are incurred and revenues are recorded when received in cash, except for material and/or availabi revenues which should be accrued to reflect properly the taxes levied and the revenues earned. Investments Investments are stated at cost which approximate market value. Investments generally consist of Federal I Government-backed securities, bankers acceptances and municipal securities (Note 5). Fixed Assets The general fixed assets of th,: City, those fixed assets which are not accounted for its the enterprise funds, are accounted for in a separate self-balancing group of accounts described as the "General Fixed Assets Group of Accounts." General fixed assets are not depreciated. General fixed as:;ets acquired by the City prior to July 1 , 1973 and during 1977 - 1979 are not recorded in the City's accounting records. General fixed assets, except. municip-:�l improvements other than buildings acquired from July 1 , 1973 through June 30, 1976 are recorded at cost in the City's accounting records. � � I i The accounts of the water utility fund include $28,399,471 of property and equipment, less $5,569,561 ~ accumulated depreciation. Of these assets, approximately $8,373,000 represent water service assets which have been donated to the City by independent contractors prior to .tune 30, 1968. Such donated assets have been recorded at values estimated by City personnel. During 1977 and 1978 t5e City conducted an laventory of fixed assets of the water utility fund. This inventory resulted in the r-tcording of approximately $1,894,000 in water service assets that were previously unrecorded. The City's evaluation of its water utility fixed assets is still continuing. Depreciation of the fixed assets of the Water Utility Fund is charged to operations using the straight-line method on the estimated useful life of an asset within a particular group of assets as foltaws: 56 t �yy 1 . MY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 1 Summary of b'igniflcant Accounting Policies. Continued e — Asset Group Life Production and p,.mping plan: 15-40 years Transmission and distribution plant 25-75 years General plant 10-30 years Transportation equipment 5-10 years The Meadowlark Golf Course property and equipment are stated at cost and are depreciated using the straight line method over the estimated useful lives of the assets. E General Long Term Debt_ �€ E General long term debt, except for enterprise funds, is not carried with the current liabilities of a fund, but rather is recorded in a separate self-balancing group of accounts described as th- "General Long Term Debt Group of Accounts." (Notes 2, 3, and b). Budgetary Control Budgetary control i-� an essential element in governmental accounting and reRorting. The City adopts an annual budget and utilizes an "encumbrance system." Under this, procedure, obligations or commit- ments in the form of purchase orders or contracts which are chargeable to an appropriation are treated as expenditures in the operating statements of the General , Special Revenue, Debt Service and Capital Project � Vacation and Sick Leave � 1 ` It is the policy of the City to record the cost of vacation and sick lcdve when paid. At June 30, 1979 the total unrecorded liability for vacation and sick leave accumulated by City employees was approximately $1 ,715.887. } Pension Plan ` Suostantiaily all City employees participate in the Public Employees Retirement System administered by tag State of California. This retirement plan covers substantially all City employees. The total perisian ex- pense recognized by the City for the fiscal year ended June 30, 1979 was approximately 53,291,400. At June 30, 1979, the excess of actuarially computed value of vested benefits over available assets, if any, was not available De i ferred npioyee Compensation The City has initiated a deferred compensation plan whereby eligible City employees may elect to defer a portion of their earnings for Federal income tax purposes, The deferred compensation plan has been 57 , 1 . CITY OF EIUPiTING TON BEACH MOTES TO FINANCIAL STATEMENTS, Continued _ Note I Summary of Significant Accounting Policies, Continued 61 approved !-y the Internsl Revenue Service (Service) . The �Irvlce stipulated in its ai.oroval that legal title to the deferred compensation funds, together with ./ Interest thereon, must rest with the City. For purposes of financial statement presentation, these deferred compensation funds have been treated as � a separate trust fund of the �.ity. j Description ,f Leasing Arrangements The City ha.z entered into long term sublease agreements with the yuntington Beach Fub!ic Facilities Cor- poration for the rental of the Civic Center complex and the Central Library. Both sublease agreements provide that the ownership of the facilities, constructed on land owned by the City, wi ! l be transferred to the City, at no additional cost, upon completion of the term of the sublease. Proper accounting under such circumstances requires that such lease be accounted for under the financing method. Under the financing method, the transaction is regarded as an installment purchase, whereby an asset and an associated long term liability are established. Annual rental payments ara treated as reductions of a long term liability. Note 2 Equipment Sale - Leaseback Agreements The City has entered into a sale and leaseback agreement with an outside party for the !ease of computer peripheral equipment. The ag.-eement is for less than five years duration and represents a financial arrangement that, in essence, is considered an installment purchase. At .tune 30, 1979, the City owed the lessor approximately $33,000. The annual payment under the agreet,..nt approximates S36,000, including interest. The agreement represent.- a future general obligation of the City and has been recorded as a liability in the "Genera; Long Term Debt and General Fixed Assets Groups of Accounts." Note 3 Leases The City has entered into two noncancellable lease and sublease agreements with the Huntington Beach Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the Cenral Library. Under both agreements, the City ?s to pay all taxes, insurance, administrative and maintenance costs. Title to the site improvements will pass to the City at the termination of the leases. The f City has determined that such leases are capital leases. Under the financing method a transaction is f regarded as an installment purchase, whereby an asset and related liability are recorded. Annual rental payments are treated as reductions of the liability. Advance rentals from the Corporation received by the City for lease of the rite upon which the facilities are constructed are recorded as deferred rental income in the General Fund and are being amortized over the terms of the sublease. A description of each lease agreement is as follows: 58 ---- i CITY OF HUNTINGTON BEACH ! NOTES TO FINANCIAL STATEMENTS, Continued t 1 . Note 3 Leases, Continued a) Civic Center The City has entered into a noncancellable lease and sublease agreement with the Corporation for the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation for '$350,000 advance rental . The term of the lease is from January IS, 1976 to r_ne week after the termination of the sublease. The Corporation has subleased the civic center site and improvements to the City for 1854,900 annual base rental . The sublease commenced July I , 1974 for a term of •;0 years or until .all debts of the Corporation related to the civic center have been discharged, whichever comes first. b) Central Library The City has entered into a noncanc:ellable lease and sublease agreement with the Corporation for the Central Library. The City has leased the site to the Corporation for $300,000 advance rental. The term of the lease is from September 1 , 1972 to one week after termination of the sublease. 1 The Corporation has subleased the library site and improvements to the City for $399,000 annual base rental . The sublease commenced February 15, i957 for a term of,30 years or until all debts 1 of the Corporation related to the library have been discharged, whichever comes first. Note G Ccrmi tments The City has entered into the following agreements: a) In 1967, the City entered into an agreement for the lease of water storage capacity in the San I Joaquin Reservoir for a term of 50 years at an annual rental of $100,000 for the first ten yea-•s, $95,000 per year for the next tc:. years, '$90,000 per year for the next seven years, and $-10,000 per year through the remaining term of the lease. The City will hold no ownership interest in the San jJoaquin Reservoir at the conclusion of the lease. b) to 1969, the City entered into an agreement with the Huntington Beach Parking Authority for the lease of certain parking facilities. The term of the lease is-24 years or until ali of the Parking Authority's 1968 revenue bonds have been retired. Annual base rental payments under the lease agree- ment are $170,050. Ownership of the parking facility will always remain with the Parking Authority. c) In June, 1974, the City leased a park site from the Ocean View School District for a term of five years. The City may cancel the agreement at the end of any budgetary year. If the City makes all ;ease payments, title to the property will pass to the City. Annual rentals under the agreement aggregate .$64,875. Due to its insignificance, the City has elected not to capitalize this financing lease. � � 59 ---�-- CITY OF HUNnNGTON$EACH -� NOTES TO FINANCIAL STATEMENTS, Continued f o Note 4 Commitments, Continued Minimum aggregate rental commitments under the abovis agreements are as follows: Year Amount 1980 $ 265,050 1981 265,050 1 1982 265,050 I 1983 264,050 1984 264,050 [ 1985-1985 1 ,310,250 i 1990-1994 880,150 1995-1999 50,000 j Remainder $ 70,G00 The City has entered into agreement with contractors which generally provide for possible reimburse- ment to the contractors, of costs incurred in constructing water, sewer, and drainage facilities. The extent of such reimbursement shall generally be limited to subsequent fees which are collected from other users of the facilities which are not used to provide improvement to the facilities. The City follows the practice of recognizing fees as revenu-- as they are collected an►' charges sub- r sequent payments to expenditures as they are made. Note 5 Investments in Marketable Securities A summary of the City's marketable securities at June 30,*1979 is as follows: Approx. Interest Principal Market Description Rate Maturity Arrount Cost Value General Fund Huntington Beach Public Facilities Corporation leasehold Mortgage Bonds, First and Second Issue 5.55% 1988-1998 $100,000 79,434 85,700 City of Huntington Beach 1970 Park Bonds 6.fj 1980 25,000 24,509 22,800 Huntington Beach Parking Authority 1968 Parking Revenue Bonds 5-5.25 1984-1998 100,000 85,302 90_g0Q I Total Investments $225,000 18q,245 !99_400 � 60 CITY OF HUNnNGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 6 Outstanding Indebtedness A summary of bonded indebtedness outstanding as of June 30, 1979 is as follows: i Bonds Bonds Matured Bonds Date of Years of Rate of Amunt of Outstanding Djrirg Outstanding Issue Bonds Maturity Interest Orig. issue June 30, 1978 Year June 30, i979 I General Obligation Bonded 1 . Debt Group 1955 water Bond 1955 1956-1962 5.50% S 230,000 -0- -0- 1 1963-1976 3.00 490,000 -0- -0- -0- 1977-1980 2.00 140,000 105,000 35,000 70,000 Total 1955 stater Bond 860,000 105,000 35,000 70,000 1970 Park Bond 1974 1971-1972 5.00 225,000 -0- -0- -0- 1973-1974 5.25 255,000 -0- -0- -0- 1975-1977 5.50 44o,0oo -0- -0- -0- 1978-1983 5.75 1 ,150,000 985,000 175,000 810,000 1984-1995 6.00 3,930,000 3,930,000 -0- 3,930,000 Total 1970 Park Bond 6,000,000 4,915,000 175,000 4,740,0o0 Total general obligation bonded debt S 6,860,000 5,020,000 2101000 4,810,000 61 a C:TY OF IJUN71NGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 6, Outstanding Indebtedness, Continued Bonds t Matured- I Bonds Purchased Bonds Date o` Years of Rate of Amount of Outstanding During Outstanding Issue Bonds _ Maturity Interest Orig. Issue June. 30, 1978 Year JLoe 30, 1979 . l Revenue Bonds Water Utility Fund 1963 Water Revenue Bond i963 1963-1974 4.75% 5 100,000 -0- -0- -O- 1975-ir76 3.25 460,000 120,000 120,000 -O- 1979-1981 3.30 400,000 400,000 -0- 400,000 1982-1983 3.40 300,000 295,000 -0- 295,000 iSA-1993 3.5V 1_,890,000 1 ,480,000 15,000 1 ,465,000 f Total Revenue Bonds (::1 (b) 5 3,750,000 2,235,000 135,000_ 2,160,u00 Less current portion 130,000 Long term portion 5 2,036,0 00 (a) The water rz�venue bonds do not represent a general liability of the City of Huntington Beach. (b) At June 30, .979 , there were $1 ,950,000 authorized b:t unused 1963 water revenue bonds. i I Note 7 Meadow ark Golf Course dote Payable In 1975, the City entered into an agreement r,) purchase the Meadowlark Golf Course from an independent party for a total purchase price of $3,200,000. Terms of the agreement called for an initial down payment of $ 928,000 with the remaining $2,272,000 being in the form of long-term'7% note. A: June 30, 1979 the balance of the note was $1 ,917,673. A schadule of yearly principal and interest pay- ments is as follows: Year Amount I i 1980-2001 $ 150,000 2002-2008 200,000 2009 115,703 62 ` CITY OF HUN17NGTON BEAST { NOTES TO FINANCIAL STATEMENTS, Continued t- Mote 7, Meadowlark Golf Course dote Payable, Continued In connection with the above pur,:hare, the City ::as leased the golf corirse operation to an antside party For 3h years at a minimum lease income of $150,000 annually through 2007 and a percentage of incom based upon gross revenues for the years 2008 and 2005. jAs part of the 'Initial payment of 5928,000, the County of Orange contributed $600,000 upon the City`s guarantee to use g,n,rz.l City funds when and if necessary *, insure that Meadowlark Golf Course will be }! maintained a- open space. 1 The note payable is collateralized by Future revenues and does not represent a general obligation of the City. 1 ?tote 8 Litigation r 4 At June 30, i379, the City was defendant in several legal actions arising in the normal course of busi-ness. In several suits, the City was insured for public: liai)ility and property damage through various insur nce policies aggregating up to $10,000,000 coverage for each occurrence. in the remainder of the suits, the City is self-insured. In the opinion of the City Attorney, the actual impact to the City upon resolr:tion of the outstanding claims is tnscgnificant and the self insurance fund is adequate. Note 9 Accounting for Self Insurance Hi 1979, the City elected to account for the self insurance fund as an internal service fund. In prior ;'ears, this fund was carried as a special revenue fund. !tote 10 Grant Fu.!-'s The Mairpover Grant fund and the Other Grants fund have accumulated deficits of $233,942 and $32,506, respectiveiy. These deficits can be primarily attributed to expenditures incurred, but may or may root be fully reimbursed under the various grants. Any amounts not fs'ly reimbursed from the various grant ] funds will be reisnbursed from thG _'eneral Fund. i;- 63 i i -- ---- -- - ---- � -"_ -` . ©TY OF HUNTINGTO?V BEACH STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES SWEDULE July 1 , 1965 through June 30, 1979 _ I • f Fines Use of Fran Charges for Fiscal Other Licei:ses s E For- !coney S Other Current Other Year Taxes Permits feitures Property Agencies +5er4ices Revenue 1969 S 1 ,938,841 74z 853 65,007 295,504 1 053 17 816,856 40,607 9 9 2,256,982 80 ,16 41 ,28 1 ,101 '9 2 4,8Z0 1 7 19703,773 79, 9 5 3 ,75 77 .. 59,339 197! 2,569,358 772,347 90,197 510,099 1 .332,432 348,834 51,129 1972 3,115,977 1 ,269,922 109,851 596.857 1 ,373040 489,013 59,200 1973 3,800,728 1 ,997,105 126,651 651,746 1 ,589„42 701,760 112,172 1974 4,386.433 1 ,834,580 152,763 682.395 1 ,830,265 615,379 32,325 ' 1975 5,723,995 2,236,292 125,698 767.233 ' ,774,192 639,064 41 ,427 1976 5,722,103 2,588.932 135,216 907.470 2,O4o,207 825,912 49,277 1977 6,785.656 2,817,209 214,808 1 ,050,938 2,567.992 942,760 48,714 1978 7.953,048 2.653,129 216,362 1,415,212 3,o;6,250 938,182 99,600 1979 S 12.825,591 2,485,540 224,026 1 ,814.115 5,5o2,46114 953.790 84,458 r '"' 64 CITY OF HUN71NGTON BEACH STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND SCHEDULE ! l _ July 1 . 1969 through .tune 30, 1979 Fiscal Administrative Services Community Services Public Safety Services Year Expenditures Encumbrances Expenditures Encumbrances Expenditures Encumbrances I 1969 S 1 ,7--0,483 1 ,767 2,522,111 89,304 3,820,166 65,171 1970 2,346,300 156,241 3,806,162 206.532 4,728,247 198,844 1971 2,32E,085 630 4,016,357 228,289 5,410,562 41 ,583 1972 1 ,676,714 12,781 4,736,550 105,091 6,966,277 84,117 1973 1 ,330,792 16,811 5,978,271 1 ,244,452 8,489,612 153,610 1974 1 ,494,073 6,6oi. 6,601 ,075 36,110 9,541 ,847 21 ,679 1975 2,802,270 14,501 6,977,233 190,358 10,858,325 117,564 1976 3,194,089 201 ,011 6.653,560 250,073 12,233,405 203,783 1977 2:664,478 153,201 7:7117:535 435:898 14,07 ,326 317:631 1978 3,635,719 161 ,464 5,673,505 447,231 14,953,652 223,169 1979 S 5,594,195 206,203 7,786.977 597,999 16,709,1'.63 307,962 I i 1 1 1 65 CITY OF HUNTINGTON BEACH STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND, CONTINUED SCHEDULE It , t July 1 , 1969 through June 30, 1979 Continued Support Services Tatr,l Goneral_ Fend Expenditures Encumbrances Expenditures Encumbrances 355,440 7, 139 8,428,200 163,381 444,095 3,879 11 ,324,803 565,496 544,078 4,456 12,299,082 274,957 724,723 8,283 14, 104,264 210,272 720,979 13,158 16,519,654 1 ,428,031 906,900 5,966 18,543,895 70,356 813,411 5,367 21 ,451 ,239 327,790 1 ,-47,564 7,616 23,328,618 662,483 i 2,493,343 47,288 26.979,687 954.018 € 1 .814,454 22.280 29,077,3J0 854,144 S 2,375,756 15.996 32,466,3 6 1 ,128,i6O ` I 1 i i 66 _- ` Cl:Y OF HUN71NGTON©EACH STATEMENT OF ASSESSED VALUE, DEBT LIMIT AND SCHEDULE III Win OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND PER CAPITA July 1 , 1969 through June 30, 1979 $ Bonded Pebt to Fiscal Estimated Total Legal Debt Total General. Legal Assessed Bonded Debt Year Population Assessed Value Limit (15$) Bonded Debt. Debt Margin Wale!e .-Pe- Capita i 1969 10h,124 $ 284,033,290 42,604,994 420,000 42,184,994 .15 4.03 1970 115,960 293,272,790 "3,990.319 6,385,000 37,605,919 2.18 55.06 1971 122,976 339,783,919 50,967,588 1 ,240,000 44,727,588 1 .84 50.74 1972 129,992 370,230,779 55,534,617 6,090,000 49,444.617 1 .64 46.85 1973 143,325 410,283.199 61 ,542,480 5,930,000 55,612,480 1.45 111.37 1y74 143,636 442,271 ,658 66,340,749 5,765.000 60,575,749 1.30 40.14 1975 146,400 529,973.310 79,495,997 5.590.000 73,905,997 1.05 38.18 1976 151 ,500 580,623,450 87,093,518 5,410,000 81 ,683,518 .93 35.71 I1977 157,800 710,079,235 106,511 ,885 5.220,000 101 ,291 ,885 .74 33.08 1978 161 ,200 854,321 ,745 128,148,262_ • •5,020,000 123,!28,262 .59 31.14 1979 167,500 $ 831 ,783,620 124.767,543 4,810,000 119,957.543 .58 28.72 . i 67 CITY OF HUNTINGTON BEACII STATEMENT OF TAX DELINQUENCIES AND IMPOUNDS SCHEDULE IV July : , 1969 through June 30, 1979 Secured Taxes Unsecured Taxes Fiscal Tax Total Delinquency Total Delinquency Year Rate Total Levy Collections Amount Percent 'Total Levy Collections Amount Percent Impounds l 1969 $ t .45 3.898,311 3,763,889 41 ,777 1 .07a 204,032 201 ,964 2,068 1 .0;% 92,645 1970 1 .1#5 4, 179,522 4,015,842 50,787 1 .22 252,136 250,534 1 ,602 .63 112,893 1971 1 .45 4,433,058 4,316,156 62,315 1.41 291 ,311 288,965 2.346 .80 54.587 1972 1 .62 5,565,713 5,395,846 59,651 1 .07 432,025 401 ,297 4,628 1 .07 136,322 1973 1 .62 6,249,372 6,094, 111 51 ,276 .82 397.216 391 , 186 6,030 1.51 130,985 1974 i .62 6,703,620 6,499,009 66,654 .99 461 ,181 456,296 4,885 i .06 137,957 1975 1 .62 8,099,022 7,844,596 74,987 .93 486,545 484,124 11 ,169 2.30 179,439 1976 1 .62 8,852,o49 8,587,784 82,622 .93 545,344 516,539 28,798 4.36 186,648 1 19?7 1 .62 9,982.983 9.844,1150 116,794 1 .17 549,994 538,370 6,791 1 .23 328,4 1 1 1978 1 -55 12,563,144 12,336,834 186,310 1 .49 742,053 711 ,519 30.534 4. 11 204,593 1979 $ . 1972 5,635,879 5,525,120 110,759 1 .97% 561 ,420 537,307 24,113 4.30% 195,202 f i 68 i CITY OF I1UlMNGTON BEACH STATEMENT OF FUTURE GENERAL OBLIGATION BONDED DEBT REQUIREMENTS BY YEAR SCHEDULE V BASED ON BONDED DEBT JUNE 30, 1979 Fiscal Year Princiaal interest Total f 1980 $ 220,000 283,iQ5 503,425 1981 230,000 272,088 502,088 1982 210,000 260,525 470,525 1983 220,000 248,450 468,450 1984 235,000 235,8nO 470,8Oo 1985 245,000 22!,700 466,700 { 1986 260,000 207,000 467,000 1987 290,000 191 ,400 471,400 1988 295,000 174,600 469,600 E 1989 310,ODO 156,go0 466,900 1 . 1390 330,000 138,300 468,300 1991 350,000 118,5oo 468,500 1992 370,000 97,500 467,500 I 1993 395,000 75,:00 470,300 J 1994 415,000 51 ,600 466,600 1995 445,000 26,7o0 471 ,700 Total $ 4,81o,000 2,759,788 7,569,788 E i { x The 1955 Water General Obligation Bonds will be totally paid in August, 1980. R I I CITY OF HUN I NGTON BEACH STATEMENT OF FUTURE WATER REVENUE BOND REQUIREMENTS BY YEAR SCHEDULE VI BASED ON OUTSTANDING DEBT JUNE 30, 1979 Fiscal Year Principal Interest Total 1980 $ 130,000 87,405 217,405 i9$1 130,000 83,115 213,115 1982 140,000 78,660 218,66o t983 145,000 71,340 216,34o 1984 150,000 68,700 218,700 1985 16o,0oo 65,350 225,350 1986 160,000 59,350 219,350 1987 170,000 53,250 223,250 1988 180,000 47,030 227,030 1989 180,000 40,000 220,000 1990 190,000 33,075 223,075 1991 200,000 26,250 226,250 1992 210,000 19,075 229,075 i 10093 15,000 78t3 15.738 i 1 Total $ 2,160,000 73 ,338 2,893,388 i 70 ` CITY OF NUNTINGTON BEACH HURTINGTON BEACH PUBLIC FACIL M ES CORPORATION (a) SCHEDULE V1F STATEMENT OF BONDED DEBT YEAR ENDED JUNE 30, 1979 Date Years Bonds Bonds Bonds of of Rate of Original Outstanding Matured Outstanding Description Bonds Maturity Interest Issue .July 1. 1978 During Year June 30, 1979 Civic Center Jan. , 1972 1975-1982 7.00% $ 2,010,000 1 ,130,000 26O,Oo0 870.00O Leasehold Mort- 1983 5.70 330,000 330.000 -0- 336,000 gage Bonds, 1984-1996 5.50 7,040,0o0 7,005,000 ..a- 7,005,000 First Issue 1997-1998 5.00 1,720,000 1 ,675,000 -0- 1 ,675,000 I Total 11,100,000 10,140,000 260.o00 3,880,000 Central Library Feb. , 1972 1975-1983 7.00% '. ,220,000 885,000 130,000 755,000 ` Leasehold Mort- 1984 5.90 180,000 180,000 -C- 180,OOD gage Bonds, 1985 5.40 190,000 190,UOO -0- 190,000 Second Issue 1986-1988 5.50 64o,ODO 640,00o -0- 640,OOG ' 1989-1931 5.60 770,000 770,003 -0- 770,000 { 1992 5.70 290.000 290,000 -0- 290,000 f 1993-1995 5.75 965,G00 965,000 -0- 965,000 1996-1997 5.00 745.G00 745,000 -0- 745,000 Total 5_000,000 4,665,000 _ 130000 4,53 ,004 i Total bonded debt $16,100,000 j4.8os.000 390,000 14.4m,nnm (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public 1 Facilities Corporation is ar; independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. 1 7i CITY OF HUNTINGTON BEACH HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION SCHEDULE Vlll STATFMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT (�) JUNE 30, 1979 ! Fiscal Civic Center ls5ue Lihr,aCg tsc� Total Year Principal Interest Total Principal Interest Total Principal Interest Total � f 1980 s 270,000 552,910 822,910 135,000 256.592 391,599'. 405,000 809,502 1,214,502 1981 290,000 534:o)o 824,o10 14o,000 246.967 386.967 430,000 780,977 1 210 977 1982 310,000 513,710 823,710 150,000 236,817 386,817 46o,000 750,527 1 :210:527 , 1983 330,000 492,010 822,010 160,000 225,967 385,967 490000 717,977 1207,977 1984 160,000 473,200 833,200 liO,000 214,417 384,417 530,000 687,617 1 ,217,617 1985 380,000 453,400 833,400 180,000 203,157 383,157 560,000 656,557 1 ,216,557 1986 400,0UO 432,500 632,500 190,000 192,717 382,717 590,000 625,217 1,215,217 1987 430,000 410,500 840,500 200,000 182,087 382,087 630,000 592,587 1,222,587 1988 460,000 386,85o 846,850 210,000 170,812 380,812 6770,000 5"I,bbG2 t 2 ,�� 1 , 1989 465,oeo 360,175 825,175 230,000 158,712 388,712 695,000 5�8,87 1;2 , 1990 530,000 333,225 863,225 24o,000 145,667 385.667 770,ODo 478,892 1 ,248,892 � 1991 56o,000 3011,075 864,075 260,000 131 ,667 391 .667 820,000 435,742 1 ,255,742 1992 600,000 L73,275 873,275 270,000 116,827 386,827 870,000 390,102 1 ,260.102 1993 64o,000 24o,275 880,275 290,000 101,002 391,002 930,000 341 ,277 i ,271 .277 1994 68o,000 205,075 885,075 305,000 83:968 388,968 985,000 289,043 1 ,274,o43 I� 1995 725,000 167,400 892,400 320,000 66,000 386,000 1 ,045,000 233,400 1 ,278,40 1996 775,000. 126,975 901 ,975 340,000 47,025 387,025 1 ,115,000 174,000 1 *289,000 1997 830,000 84,075 914,075 36o,000 28,250 388,250 1,190,000 112,325 1 ,3u: ,32 ! 1998 _-845,MO 40.325 885,325 385,000 9,625 394,625 1,230,000 49,,950 1 ,279,950 Total S g.8R0.o00 6,383.965 16.263,965 4,535,000 2,818,2Z6 7.353,276 14,415,000 9,202,241 23,6�17,�241 Principal Due: January September f Interest Due: July and January September and March i (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporatiop is an independent entity. Accordinglv, the obligations of the Public Facilities Corporation do not constitute an obligation or the City. 72 r CITY OF HUNTINGTON BEACH PARKING AUTHORITY OF THE CITY SCHEDULE 1X OF HUNTINGTON BEACH STATEMENT OF BONDED DEBT (a) • JUNE 30, 1979 Date Years Bonds Bonds Bonds of of Rate of Original Outstanding Matured Outstanding Description Bonds Maturity interest Issue July i , 1978 During Year June 30, 1979 1968 Parking Sept. , 1968 1970-1972 6.00% $ 150,000 -0- -0- Revenue Bonds 1973-1979 4.75 470,000 155,000 75,000 80,000 1980-1985 5.00 570,000 570,000 -0- 570,000 1986-1993 5.25 1 ,110,000 1 ,110,000 -0- 111101000 Total $ 2,300,000 198359000 75,000 I ,760,000 I PARKING AUTHORITY OF THE CITY 1 OF HUNTINGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR i I BASED ON BONDED DEBT JUNE 30, 1979 Fiscal Year Principal Interest Total 1980 $ 80,000 88,675 168,675 1981 85,000 84,65o 169,65o 1982 85,000 8o,4o0 165,400 1983 90,000 76,025 166,025 1984 95,000 71 ,400 166,400 1985 105,000 66,400 171 ,400 1986 110,000 61 ,025 171 ,025 1987 115,000 55,256 170,256 i 1988 120,000 49,088 169,088 1989 125,000 42,656 167,656 199D 135,000 35,831 170,831 i991 14o,000 28,613 168,613 1992 150,000 21 ,000 171 ,000 1993 160,000 12,863 172,863 1994 165,0oo 4,331 169.331 Total $ i ,760,000 _Z78.213. 2,538,213 13 (a) The above schedules have been included herein for informational purposes only. The (irking Authority is an indzpen- dent entity. Accordingly, its obligations are not obligations of the City. j 1 . ' E I E I HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION 91 NANCIAL STATEMEWS JUNE 30,1979 (With Accountants'Report Thereon) a i i y Y J t e: �. PENT. MARWICK. TAITCHELL & Co. CERTII*IED PUBLIC ACCOUNTA\'TS _ 000 NEWP08T CENTER DRIVE \EWI-ORT BEACII.CALIMUNIA 32660 ' The Honorable Board of Directors Huntington Beach Public Facilities Corporation Huntington Beach, California 1 j . We have examined the combined balance sheet of the Huntington Beach Public Facilities Corporation as of June 30, 1979 and the related combined statement of earnings and retained earnings and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as tie considered ner�-ssary in the circumstances. In our opinion, the aforementioned combined financial statements present fairly the financial position of the Huntington Beach Public Facilities Corporation at .tune 3G, 1979 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. i . September 14, 1979 f 74 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED BALANCE SHEET Jt1NE 30, 1979 Civic Total Center Project Library Project Assets 1 Current assets restricted as to use: Cash held by trustee $ 82 - 82 Time certificates of depos;t 963,362 644,768 318,594 Temporary investments in U.S. government securities, at cost (market: S1 ,550.747) 1 ,628,116 1 ,156,878 471 ,238 Accrued interest receivable 41 ,786 21 ,412 20,374 Interproject balances - 5,815 (5,815) Total current assets restricted as to use 2,633,346 1 ,828,873 804,473 � I 4 Long term leases receivable less unearned } I income of $11 ,061 .307 (dote 3) 12,762,795 8,715,012 4,0 47,783 Total assets _$15.396,141 10,543,085 4,852,256 1 Liabilities and Retained Earnings Current liabilities payable from restricted assets: s Accrued interest $ 338,240 253.587 84,653 Current installment of bonds payable (dote 4) 405,000 270?000 135,000 i I Total current liabilities 743,240 523,587 219,653 Deferred lease income 80,557 80,557 - Bonds payable, net of current installment (Note 4) 14,010,000 9,610,000 4,400,000 Total liabilities 14,833,797 10,214,144 4,619,653 i Retained earnings 562,344 329,741 232,603 Total liabilities and retained earnings $15,396,141 10,543,885 4,852,256 y a See accompanying notes to financial statements 75 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1979 Civic Library Operating revenue: Total Center Project Project Interest income: a Lease payments received $ 1 ,253,900 854,900 399,000 Lass portion applicable to principal 275,513 188,665 86,848 978,387 666,235 312,152 Operating expenses: Storm drain repai r 5,498 5�__ ,—Q8 Net operating income 972.889 660,737 312,152 Nonoperating revenue: Interest earned 205,432 152,901 52,531 } Total operating and nonoperating income 1 ,178,321 813,638 364,683 f 1 ! Nonoperatino expenses: Interest expense 805,703 550,167 255,536 Net earnings 372,618 263,471 109,147 i Retained earnings at July 1 , 1978 169,726 66,270 123,456 Retained earnings at June 30, 1979 $ 562.344 329,741 232,603 See accompanying notes to financial statements. I i i 76 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1979 Civic Library Total Center Project Project Source of Funds: _ Funds provided from operations: Net earnings S 372,618 263,471 109,147 Decrease in long term lease receivable 275,513 188,665 86.848 S 648,13I 45-2,136 i95.9q� Use of funds: Redemption of bonds payable $ 405,000 270,000 135,000 Decrease in deferred lease income 4,027 4,027 - Increase in working capital 239,104 178,10g 60.995 S 648,131 452,136 195,995 Changes in components of working capital : Increase (decrease) in current assets: Cash held by trustee $ (464) (546) 82 Time certificates 139,159 76,190 62,969 ` Temporary investment in government securities 10D,103 85,995 14,108 I Accrued interest receivable (12.795) (11 ,989) (806) Interproject balances -0- 20,691 (20.691) 226,003 170.341 55,662 : Decrease (increase) in current liabilities: Accrued interest payable 28,101 17.768 10,333 Current installment of long-term debt (15,000) (10,000) (5,000) I � 13,101 7,768 Increase in working capital S 239,104 178,109 60,995 + t � 1 See accompanying notes to financial statements. 77 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEKENTS JUNE 30. 1979 I . Summary of Significant Accounting Policies The following is a summary of significant accounting policies us►:d by the Huntington Beach Public Facilities Corporation (Corporation) . Basis of Accounting The accomparying combined financial statements of the Corporation have been prepared using the accrual basis of accounting. i Temporary Investments I Investments are stated at cost. Such investments generally consist of Federal C-overnment backed securities and are not adjusted for amortization of purchase premium or discount, which has been determined to be ir;-.aterial at June 30, 1979. Funds Under the provisionsof the bond indenture agreements, the Corporation is required to maintain separate accountability for various types of funds the Corporation receives. A desr ription of these funds, which have been combined for financial ;tater,ent presentation, is as follows: Account Source Use i Reserve Fund Bond proceeds and rental revenue fund Bond principal and interest Constructicn rand Bond proceeds Cost of project !nterest During Construction Bond proceeds First twenty►-six months' interest Furl on bonds 78 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION -� !TOTES TO FINPNCIAL STATEMENTS, CONTINUED i . Summary of Significant Accounting Policies, Continued � I Account Source Use _ Rental Revenue Fund City of Huntington Beach rent payments Required transfers to various funds and/or other specified pure. ses 1 . jnebt Service Fend Transfers from revenue fund Bond principal and interest Administrative Expenses Fund Transfers from revenue fund Corporation operating expanses Bond Redemption Fund Transfers from revenue fund Call and redemption of bonds, I changes, alterations or additions project,1-o the of any b-serent or reimbursement additional rent l previously paid by the City of Huntington Beach t Upon completion of construction, separate rental revenue funds were established to account for a)? lease andI other revenues from the City of Huntington Beach for the Civic Center and Library. The separate construction funds for the Civic Center and Library projects have been left open to pay for improvements and modifications to the project structures as approved by the Directors of the Corporation. Monev in the respective rental revenue funds is disbursed as follows: First, to the debt service funds in a-our n sufficient to pay one succeeding principal and two succeeding interest installments; Second, amounts, necessary to restore the respective reserve funds to amounts equal to one year's lease revenue; Third, administrative expense funds equal to the budgeted administrative expenses of the Corporation; Fourth, all remaining amounts to the bond redemption funds. Money accounted for in the bond redemption fund is to be used to correct deficiencies, as may arise, in the debt service funds, reserve funds or administrative expense funds, respectively. honey remaining &fter the minimum requirements of the bond agreements have been met may be used to purchase or redeem ou' :.ending bonds to make improvements or to reimburse the City of Huntington Beach for rents paid to the Corr- •- tion. 2. Organization The Huntington Beach Public Facilities Corporation was incorporated under the laws of the State of California as a non-profit corporation on November 25, 1970. The Corporation was forted for the primary purpose of financing and constructing a civic center complex and central library for tfe City/ of Huntington Beach. The constructed civic facilities have been leased to the City of Huntington Beach under long term lease agreements. {Note 3}. 79 ■ HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS, CONTINUED 1 3. Leases The Corporation has entered into two lease and sublease agreements with the City of Huntingtcn Beach. The terms of the leases are summarized as follows: a) Civic Center lease - The Corporation has entered into a lease and sublease agreement with the City of Huntington Beach for the Huntington Beach Civic Center. The site upon which the Civic Center is constructed is owned by the City and has been leased to the Corporation for an advance rental of $350,000. The term of the lease is from January 15, 1972 to one week after the termination of the sublease described in the next paragraph. I The Corporation has subleased the Civic Center site and civic buildings constructed thereon, to the City for an annual rental of $854,900. This sublease commenced July € , 1974 and extends for a term of the earlier of: (a) thirty (30) years or (b) until the bonded indebtedness incurred by the Corporation to construct the Civic Center has been pall. b) Central Library lease - The Corporation has entered into a lease and sublease agreement with the City of Huntington Beach for the Central Library. The site upon which the Central Library is l constructed is owned by the City and has been leased to the Corporation for an advance rei.tai of 1 $300,000. The term of the lease is from September 1 , 1972 to one week after the termination of the sublease described in the next paragraph. ( The Corporation has subleased the Central Library site and building constructed thereon to the City for an annual rental of $399,000. This sublease commenced February 15, 1975 and extends for a term of the earlier of: (a) thirty (30) years or (b) until the bonded indebtedness incurred by the Corpora- tion to construct the Central Library has been paid. Under both agreements, the City is required to pay all taxes, insurance, administrative and maintenance costs associated with the facilities under lease. At the conclusion of the lease agreements title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such lease be treated as a financing lease. Under the financing method, the excess of aggre- gate rentals over the cost of the leased property is generally designed to compensate the lessor for the use of funds invested. Accordingly, at June 30, 197% leases receivable from the City of Huntington Beach totaling $12,762,795 net of unearned interest, for the Civic Center and Central Library facilities have been reflected in the financial statements. The site advances are included in the long term leases receivable and are amurtized over the term of the leases. s . 80 I HU14TINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS, CONTINUED • 4. Outstanding indebtedness A summary of the Corporation's bonded indebtedness as of June 30, 1979 is as follows: Maturities Date interest Original Outstanding Annual Period Bond issue issue.— rate issue June 30. 1979 requirements covered Civic Center: Leasehold Varying amounts Mortgage Bonds, January 5.00 - from $200,000 to First Issue (a) 1972 7.00% $ 1111001000 S ' 9,880,000 $890,000 1975-1998 { Central Library: Leasehold Varying amountf. ; Mortgage Bonds, February 5.00 - from $105,000 to Second Issue (b) 1972 7.00% 5,000.000 4.535.000 $385,000 1975-1997 $ 16,lomoo $ 14,415,000 a) The $11 ,100,000 principal amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972 and have been issued as coupon bonds in $5,000 denominations. The Bonds, which are serial in nature, mature ` annually on January 15 of each year. Interest is payable semiannually on January 15 alid July 15 of each year. Bonds maturing on or prior to January 15, 1982 are generally not subject to tail and redemption prior to their final maturity date. Bonds maturing on or after January 15, 1983 (a principal amount of Y9,090,000) are subject to call and redemption at the option of the Corporation, in total or in part, on January 15, 1982 or on any interest payment date thereafter. Call price of the bonds shall be an amount equal to the prin- cipal amount plus a premium equal to 1/4 of 1 percent of the principal amount redeemed, plus 1/4 of l percent for each year or fraction of a year from the redemption date to the maturity date of the bonds. In no event shall the premium exceed 4 1/2 percent. b) The $5,000,000 principal amount of Leasehold Mortgage Bonds, Second Issue (Bonds) are dated September 1972 and have been issued as coupon bonds in $5,O00 denominations. The Bonds, which are serial in nature, mature annually on September 1 c, each year. Interest is payable semiannually on March 1 and September 1 of each year. Bonds maturing on or prior to September 1 , 1982 are generally not subject to call and redemption prior to their fixed maturity date. Bonds maturing on or after September 1 . 1983 (a principal amount of $3.950,000) are subject to call and redemption at the option of the Corporation, in total or in part, on September 1 , 1982 i 81 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL. STATEMENTS, CONTINUED 4. Outstanding Indebtedness, Continued_ ' or on any interest payment date thereafter. Call price of the Bonds shall be an amount equal to the prin- cipal amount redeemed plus a premium equal to 1/4 of i percent of the principal amount redeemed, plus 1/4 of 1 percent for each year or fraction of a year from the redemption date to the maturity date of the Bonds. In no event shall the premium exceed 4 percent. i I 82 I PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH FINANCIAL STATEMENTS JUNE 30, 1979 1 (With Accountants'Report Thereon) { S i 1 i 2_ i I:AT. M.A RWICN. MITCHELL & CO. CERTIr1ED PUBLIC ACCOUNTANTS • ! GGG 1n PORT CENTER DRIVE ! - tiLW PORT HEACII.C—LiroN.si A o2oao The Honorable Members of the Parking Authority City of Huntington Beach Huntington Beach, California We have exanined the balance sheets of the Parking Authority of the City of Huntington Beach as of June 30, 1375 and 1978, and the related statements of earnings and retained earnings and changes in financial positior r the years then ended. Our examinations were made in accordance with generally accepted auditing standard, accordingly included such tests of the accounting reco-ds and such other auditing procedures as we - :red necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of arking ' Authority of the City of Huntington beach at June 30, 1979 and 1978, and the results of its P•, _:ations and the changes in its financial position For the years then ended, in conformity with general?, accepted accounting i principles applied on a consistent basis. a i Q � Ct11MJ September 14. 1979 1 1 83 J PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH BALANCE SHEET JUNE 30, 1979 AND 1978 Assets: 1979 1978 Cu-rent assets: Cash and term deposits $ 137.503 137,503 Receivables: Due from general funs 2,330 Accrued interest receivable 9,165 14,631 Total receivables 11 ,495 14,631 Total current assets 148,998 152,134 Assets restricted as to use: Investments, at cost which approximates market value (Note 3) 631 ,548 572,107 Cash with fiscal agent 6,537 - Total restricted assets 638.085 572.107 Fixed assets, at cost: Land 371 ,065 371 ,065 improvements 1 ,694.089 1 ,694,089 Less allotaance for depreciation (677.901) (605.217) Total fi .ed assets 1 .387.253 1,459,937 Total assets $ 2.174.336 2,184,178 L'abilities and Retained Earnings: Current liabilities: Accrued interest payable $ 30,078 30,078 Current installment of bonds payable (Note 3) 80,000 75,000 Matured interest payable from restricted assets 6.537 - l Total current liabilities 116,61; 105,078 Bonds payable, net of current installment (Note 3) 1 ,680.00o 1 ,76C,o00 Total liabilities 1 ,7:6,615 1 ,865.378 Retained earnings 377,721 319,100 Total liabilities and retained earnings $ 2,174,336 2.184,178 r' See accompanying notes to financial statements. 84 l t r 1 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF EARNINGS AND RETAINED EARNINGS YEARS ENDED JUNE 30, 1979 AND 1978 1979 1978 Operating revenue: Rentals (Note 2) S 170,050 170,050 Operating expenses: Depreciation 72,684 72,684 Net operating income 97,366 97,366 Nonoperating revenue: Interest earned 53,61) J5,345 Total operating and nonoperating income 150.977 132,711 i Nonoperating expenses: 1 . Int -est expense 92,356 93.92 Ne: earnings 58,621 39,142 Retained earnings, beginning of year 319.100 279,45E Retained earnings, end of year 377.721 319.100 See accompanying notes to financial stat►:wets. t . 85 J PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENTS OF CHANGES IN FINANCIAL. POSITION � YEARS ENDED JUNE 30, 1979 Aiao '978 • _ Sources of working capital : 1979 1978 Net earnings $ 58,621 300,142 Items which do not use working capital : Depreciation of land improvements 72,684 72,684 Working - 1 0 1 Working capital provided by aperati.,n, 31 ,3 5 111826 Decrease in restricted assets - 121 ,310 Decrease in working capital 14,673 11 ,914 $ 145.978 _. 245,050 Uses of working capital : 80,000 75,000 Decrease in bonds payable $ 170,050 Reduction in deferred lease income 65,978 Increase in restricted assets - S 145-978 245,050 f Change, in components of working capital : Decrease (increase) in current assets: Cash and term deposits $ - (6,146) Receivables 3,136 15,291 i 3,136 9,145 f Increase (decrease) in current liabilities: Accrued interest payable - (2,231) Matured interest payable 6,537 - Current installment of bonds payable 5,000 5,000 11 ,537 21769 Decrease in working capital $ 14,673 11 ,914 See accompanying notes to financial statements. QS PARKING AUILMITY OF THE CITY E' OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ' JUNL 0 3 . 1975 (1) Sunrnary of Significant Accoui:ti ng Policies basis of Ac-counting The accompanying financial statements of the Parking Authority of the City of Huntington Beach (Parking Authority) have been prepare4 using the accrual basis of accounting. Fixed Assets and Depreciation Fixed assets are recorded at cost. Land improvements are depreciated using the straight-line methc,6 over the term of the lease (23 years) with the City of Huntington Beach (City). Investments Investments are stated at cost. Such investments consist of Federal government backed securities and bans _ time certificates of deposit (see Note 3)• Lease The Parking Authority leasing operations consist principally of the leasing of its parking facilities to the City of Huntington Beach. The Parking Authoril-y lease with the City of Huptington Beach is classified as an operating lease. I (2) Operations The Parking Authority is an independent public agency established in 1967 under provisions of the Parking Law of 1949. The primary purpose of the Parking Authority is to provide c,ff-street parking facilities fcr the City of Huntington Beach. The Parking Authority leases its parking facilities to the city under M a lease agreement which requires minimum annual rental payments of $170.050 through July 1, 1993. The Parking Authority obtained the funds to acquire and construct thew facilities through the issuance of $2,300,000 of revenge bonds which are secured by the rental payments received from the City. The rental is payable annually on July 1. Rental income is to be used for bond principal and interest requirc.nents. Ex;ess funds, if any, includio,g intereEt earned thereon, which are not required to meet scheduled principal and interest payments and which are not required by the bond indenture agreement to be established as a reserve may be: (1) used to finance additions and improvements to the parking facility, or (2) applied as a credit against annual rental payments frog the City. E 87 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH i ' I EMOTES TO FINANCIAL STATEMENTS, CONTINUED Gaerations. Continued Tinder the terms of the lease agreement dated September 30, 1968 between the Parking Authority and the City the lease is to terminate after all of the 1968 revenue bonds are retired or provision for retirement has been made. All costs of maintenance and operation have been assumed by the City. The City must also pay, in the form of additional rent, all taxes, assessments, insurance, fees and other expenses of the Parking Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility. (3) Bonded Debt A su.:nary of the Parking Authority bonded debt is as follows: Bonds Bonds i Matured Matured Amount of Bonds During Bonds During fronds Hate Years of Rate of Original Outstanding Fiscal Outstanding Fiscal Outstandir. Description of Issue Naturity Lnterest Lssue 6/30/77 _ 1978 6/30/78 1979 6/30/79 1968 Parking September, 1970-72 6.00% $ 150,000 Revenue Bonds 1368 1973-79 4.75 470,000 225,000 70,000 155,000 75,OOO 80.000 1980-85 5.00 570,00 570,900 - 570,000 - 570,000 1986-93 5.25 1 ,110,000 1 ,i lO,OC�'1 - 1 ,110,000 - _ 1,110.000 $2,300,000 1 ,905,I)DO 70,000 1 ,835,000 75,000 1 ,760.000 Interest is payable semiannually each yepr on March 1 and September 1 . Provision.-, -)f the bond agreement provide for the establishnent of three special funds as follows: ' (a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking i facility are placed in the bond service rued. Money in this fund is used to pay bond principal i and interest. Amounts received in excess of the an-aunt required to meet principal and interest requirements may be transferred to the reserve fund-or :corking capital fund. Under certain cir- cumstan!es such excess funds may be used to finance additions and improvements or reduce the annua rental due from the City. 1 88 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS, CONTINUED (3) Bonded Debt, Continued (b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside to be used to pay principal and interest coming due in the event there is insufficient money in the bond service fund and may be applied to the final payments of principal and interest. (c) Working Capital Fund - After provision has been made for payment of bond principal and interest and an appropriate reserve fund balance has been established, excess money, if any, remaining in the bond service funo may be -transferred to the wc.rking capital fund to be used to pay the adminis- trative expenses of the Parking Authority and maintain the working capital fund's cash at a balance of at least $1 ,500. At June 30, 1979. the Parking Authority maintained the following investments pursuant to the terms of the bond agreement (see "ore 0 : _ 1979 _ 1978 Bond Service Fund $ 542,965 483,794 Reserve Fund 88,583 88,313 i S 631,548 572,107 ! Bonds maturing on and after September 1 , 1980 are subject to call and redemption at the option of the Parking Authority as a whole or in part, -n inverse order of maturity and by bond number within a siaryle maturity on September 1 , 1979 and on ai.y interest payment date thereafter. The bonds are redeemable at par value plus accrued interest and a premium equal to 1/4 of I percent for each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3 1/2 percent. 89 Certified Public Accountants Newport anter Drive [Pteat�1Marw1r.k,M1tche11&Co. Newpntt Beach,California 92660 September 30, 1980 Honorable City Council, City of NuatinSton Beach, Gilifroraiao We have examined the financial of the various funds and acco-r;t groups of the City of Huntington Beach for the year ended June 30, 1480 and issued our report thereon dated Se tember 1S have s po p , 1980. The City has not maintained adequate general fired asset records aa:, fixed asset records relat- ing to the hater Utility Fund. Accordingly, we were unabla to satisfy ourselves as to the General Fixed Asset group of accounts of $18,563,761 and net fixed asset balances and the ralated deprsciatiou expense in the Water Utility Fund amounting to $2299219595 and $678,000 respectively. Therefore, the scope of our work was not sufficient to enable us to express as opinion on the financial stata.:•rnts of the General Fixed Assett group of accounts and the hater utility Fund. Our examination was made in accordance with generally accepted auditing standards and accordingly included such L:sts of the accounting records and such other auditing procedures as we corsldersd necessary in the circumstances. As part of car examination, we made s study and evaluation of the City's system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards. Under these standards, the purposes of such evaluation are to establish a basis for reliance on the system of internal accounting control in determining the natLre, timing and extent of other auditing procedures that are necessary for expressing an opinion on the financial statements and to assist the auditor in planning and performing his examination on the financial statements. Also we have performed tests of compliance with the Revenue Sharing Acts and regulations as required by Section 11.C.3 of the Audit Guide and Standards ,for Revence Sharin and Anti- recession Fiscal Assistance Fund Recipients Guide issued by the Office of A.eveenue Sharing, U.S. Department ofTreasury, and .ompared the data on Bureau of Census Form RS-5 with the records at the City of Huntington Beach, California requited by Sections 11.C.4 of the Guide. i Honorable City Council City of Huntington Beach September 30, 1980 2. I The objective of interuai accounting control is to provida reasonabla, but not abuolute, rssurances as to the safeguarding of assets against loss from. uuau- thorixed use or disposition, and the r9liabilicy of finauaal records for pre- it paring financial statements and maintaining accountability for &abets. We understand that the objective of those administrative control procedures co,z- � I prehecded in Section 11 of the Guide is to provide similar assurance as to compliance with revenue sharing acts and regulations. The con:ept of reasonable assurance recognises that the cost of a system of internal accounting control should not exceed the benefits derivedt and also recognizes that the evaluation of these factors necessarily requires estimates All judgments by mminagement. There are inherent limitations that should be recognized in considering the potential effectiveness of any system of internal accounting and administrative control. In the performance of most control procedures, errrrs can result frog misunderstanding of iastr%%ctiomj, mistakes of judgment, carelessness, or other personal factors. Control oroceduras whose effectiveness depends upon segraga- tion of duties can be eircurventad by collusion. Ssm.ilarly, control procedures can be circumvented intotationally by management, either with respect to the exe- cution and recording of traosactions or with respect to the estimate and judg- ments required in the preparation of financial statements and with respect to caspliance with applicable laws and regulations. Pusher, projectioc of any evaluation of internal accounting are: a4aiulstratire control to future periods i Is subject to the risk that the procViurae my :oecome iL:!adequate because of changes in conditions and that the degree of c;apliunce with the procedures way deteriorate. Our examination of the financial state ants made iu accordance with generally accepted auditing standards, including thg study and evaluation of the City's systm of internal accounting control and compliance with tic revenue sharing acts and regulations for the year ended June 30, 1900 that was made for the purposes set forth in the first paragraph of this report, would not necessarily disclose all weakuesses in the system nor all compliance violations because it was booed on selective tests of accounting records and related data. However, such s..sdy and evaluation disclosed the following conditions that we bell-:ve to be material weaknesses and/or compliance violations. I. The City does not maintain adequate records of its property, plant and equipment. Office of Revenue Sharing regulations, Section 51..73, re- quire that cities mainta i the following minimum property information: date of purchase, date of dispQsal, daze of transfer and transferral, and location. The City is currently in the process of developing a system whereby the necessary inigrwation will be collected and main- tained.. 2. One construction project agreement totaling $279890 did not include the provisions of the Davis-Bacon Act as required by Section 51.42. I i Honorable Ct Ly Couicil City of Runtingtm Beach September 30, 1980 3. Based upon procedures described in the first paragraph of this report, wa noted no material differences betwedu the data un rho Bureau of Rancus Form IS-8 and the records of the City of Huntingtoa Beach, California, for the year ended June 30, 1980. The foregoing conditions were considered in determining the nature, tiring, and extent of audit tests applied in our examination of the financial statements, and this report of such conditions does not *modify our report dated September 159 1980 on such financial statements. vim 1 I I i i � Ri1�)UfiL � FillfillElfiL 13EPORT, of the i CITY OF HUNTINGTON BEACH forme I FISCAL YEAR ENDED ,TUNE 30, 1980 oEanFxrr,¢rrr OF FINANCE I ��► o"" T. vat Acln9 Di'ector of Frence - CITY of HUr4T MT0N BEACP ANNUAL FINANCIAL REPORT TABLE OF CONTE14TS 1 . Exhibit Page i Letter of Transmittal 1 Elected City Officials 4 Departments of the City $ Accountants' Report 5 Financial Statements: Combined Balance Sheet - All Funds and Account Groups A 6 General Fund: Balance Sheet B 10 Statement of Changes in Fund Balance C 11 Statement of Revenue - Estimated and Actual D 12 I� Statement of Appropriations, Expenditures and Encumbrances E 16 � 4 I Special Revenue Funds: Combined Balance Sheet F 18 Combined Statement of Changes in Fused Balance G 20 Statement of Revenue, Expenditures and Encumbrancus - t ;udget and Actual: Special Gas Tax Fund N 22 Library Service Fund 1 23 Sewer Fund J 24 Planned Local Drainage K 25 General Revenue Sharing Fund L 26 Federal Manpower Grant Fund M 28 Other Grants Fund N 29 Park Acquisition aad Development Fund 0 30 Traffic Safety Fund P 32 Parking Keter Fund Q 33 i MY OF HUNIIfNGTON BEACH ANNUAL F WAKCIAL REPORT + TABLE OF CONTENTS Exhibit Page i Internal Service Funds - Self insurance Combined Ba i ante Sleet P. 34 Combined Statement of Revenue. Expenses and Retained Earnings S 35 Combined Statemen; of Changes in Financial Position T 36 Debt Service Funds: Combined Balance Sheet U 37 Combined Statement of Revenue, Expenditures and Fund Balance (Deficit) V 3e Capital Project Funds: Combined Balance Sheet W 39 Combined Statement of Revenue, Expenditures, Encumbrances and Fund Balance X 40 Enterprise Funds: Combined Balance Sheet Y 42 Water Utility Fund: Statement of Revenue and Expenses Z 44 Statement of Changes in Retained Earnings AA 45 Statement of Changes in Financial Position I!B 46 Meadowlark Golf Course Fund: I Statement of Revenue and Expenses Cr. 48 _ Statement of Changes in Accumulated Deficit DD 44 i Statement of Changes in Financial Position EE 50 Trust and Agency Funds: Combined Balance Sheet FF 51 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance GG 52 ii -� - aff QF E 11WIL 4GTOM TEACH ANNUAL MANC1AL REPORT TABLE C e C04UNTS ! Exhibit Page I Notes to Financial Statements 53 Supplemental information: Statement of General Fund Revenues - Other than Property Taxes Schedule 1 bl Statement of Expenditures and Encurkrances for General Fund Schedule 11 62 Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bond Debt to Assessed Value and Pet, Capita Schedule 111 64 Statement of Tax Delinquencies and tropounds Schedule IV 65 Statement of Future General Obligation Bond Debt Requirements Iry Year Based on Bond Debt Schedule V 66 ( Statement of Future Water Revenue Bond Requirements by Year on Outstanding ,. Debt Schedule VI 67 Huntington Beach Public Facilitiet " rporation - Statement of Bonded Debt Schedule VII 68 j Huntington Beech Public Facilities Lorporation - Statement of Future Debt I Requirements by Year Based on Bonded Debt Schedule Vill 69 Parking Authority of the City of Huntington Benz;% - Statement of Bonded ! Debt Schedule IX 70 I Parking Authority of the City of Huntington Beach - Statement of Future Debt Requircnients by Year Based or, Bond Debt Schedule IX 70 City of Huntington Beach Public Facilities Corporation Accountants' Report 71 Financial Statements Combined Balance Sheet 72 Combined Statement of Earnings and Retained Earnings 73 Combined Statement of Changes in Financial Position 74 Notes to Financial Statements 75 City of Huntington Beach Parking Authority i Accountants` Report 80 I iii -- Crff OF HUN'MGTION REACH -- _ ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Exhibit Page City of Huntington Beach Parking Authority, Contin+ied Financial Stat-°ments Balance Sheet 81 Statement of Earnings and Retained Earnings 82 St;-Lament of Changes in Financial Position 83 Notes to Financial Statements 84 i 11 1 I ' iv � I II - CITY OF HUN MNGTON BEACH OFFICE OF DIRECTOR OF FINANCE DAN T. VILL£LLA, ACTING DIRECTOR Hr. Frank B. Arguello September 15, 1980 Acting City Administrator City of Huntington Beach, California Dear Mr. Arguello: Submitted herewith is the Finance Department's annual report containing the City':. financial statements for the fi-cal year ended June 30, 1980. The comprehensive report encon-asses all funds, reflects the -exults of all financial transactions, and represents the culmination of accounting processes performed during the fiscal year. General Fund t Revenues and transfers from Other Funds for general Fund purposes totalled $35,772,295 :r :'r-19bO, an increase of S3,442,292, or 9.6% when compared to FY-1979. The revenue from various sources and the changes as compared j FY-1979 are as follows: Percent Change from FY-1979 Source Amount of Total Amount Percent Property Taxes $ 9.324.669 26.1% $ 2,653,620 28.1% Other Local Taxes 14.557.330 40.7 1 .731,739 11.9 License and Permits 2.597.954 7.3 112.414 4.3 Fines and Forfeitures 398,877 1.1 174,851 43.8 From Use and honey and Property 1 ,820,700 5.1 6.;85 .4 From Other Agencies 3,8?4.763 10.8 (1,627.701) (42.0) ' From Charges for Current Services 1 ,158,294 3.2 204,504 17.7 Other Revenue 90,149 .3 5.691 6.3 Transfers from Gther Funds 1 ,949,559 5.4 180,589 9.3 ' Total $ 35.772.295 100.0% $ 3,442,292 9.6% I 1 Crff OF HUrMNGTPON BEACH f Gross expenditures and encumbrances for general fund purposes totalled $36.901,644 in FY-1980 - an increase of $3,307,09 or 9 8 .0% over FY - 1979• Expenditures and encumbrances are indicated by function as follows. The change in relation to FY-1979 expenditure and encumbrance activity is also demonstrated. Percent Change from FY-1978 Function Amount of Tota! Amount Percent Administrative Services S 6.723,175 18.2 S 922,777 13. . {{ ComFnuni ty Services 11 .367,668 30.9 3.002,697 26.4 Public Safety Services 16,789,782 45.5 (227,643) (1.4) Support Services 2.001 ,019 5.4 (390,733) (19.5) Total $ 36,901.644 100.0% $ 3.307.098 9.0% The unappropriated general fund balance decreased from $2,091 ,4% in FY-1979 to S1,972,908 in FY-1980, a decrease of $118,587, or 5.7%. The City continues to fund accrued employee vacation and sick leave in the amount of S1 ,225,205. Assessed valuation increased by $152,144,050 to $583,927,670 in FY-1580 - an 18.3$ increase. in 4-f-1981 , it is anticipated the assessed valuation will increase to $1 A74,304.701, an increase of $90,377,031, or 9.2%. A comparison of assessed valuation over the last three years with anticipated FY-1981 assessed valuation is as follows. Assessed Change from Prior Year j Fiscal Year Valuation Amount Percent 1 1981 > 1 ,074,304,701 90,377,031 9.2% 1980 983,927,670 152,144,050 18.3 1979 831 .783.620 (22,538,125) (2.6) 1978 854.321 .745 144,242,510 20.3 Outstanding general obligation bonds as of June 30, 1980 totalled $4,590,000, comprised of $35.000 outstanding on the i955 Water Bond issue and $4,555,000 outstanding on the 1970 Park Bond issue. There is, as of June 30, j 1980, $1 ,990,000 outstanding on the 1963 Water Revenue Bond but this does not represent a general obligation of the City of Huntington Beach. The tax rate necessary to provide funds for voter approved indebtedness totalled $.1972 per $100 of assessed valuation in FY-1980 and is anticipated to be the same rate per S100 of assessed valuation in FY-198i. This is in addition to the City`s share of the overall $4.00 per $100 of assessed 2 is CITY OF HUMNGTON BEACH • valuation permitted as a result of the passage and implementation of Proposition 13. Comparative data for time City's Water Utility operation for the past two years is as follows. la80 1979 Total operatin;, revenue $ 5,451 ,565 $ 5,168,003 r Net income 1 ,674.765 1 ,146,467 i A supplemental information section has been included in this report which contahis comprehensive statistical data. Such data is presented so as tc relate physical, economic, social and political characteristics of our city which should give the readers of this report a more broad and more complete understanding of the City and its financial operations. In accordance with Section 616 of the City Charter, the City Council shall employ at the beginning of each fiscal year an independent certified public accountant who should examine all City accounts and the results reported to the City Council . The opinion of Peat, Marwick, Mitchell S Co. , Certifies: Public Accountants, is included in this report. i wish to express my appreciation to the members of the Finance Departmnt without whose dedicated efforts this report would not be possible. In addition, 1 would express my appreciation to you and the City Council for the continuing support and interest in planning and conducting the fiscal affa'.rs of this city in a responsible and progressive manner. Respectfm ' ' • _ubmi tted, Dan T. Villella Acting Director of Finance 1 € 3 --- C17 f OF HUNnNGTON BEACH ELECTED OFFICIALS � I City Council Ruth S. Bailey Mayor Ruth E. Finley Mayor Pro Tem Jack Kelly Councilperson Robert P. Mandie, Jr. Councilperson Donald A. MacAllister Councilpers.,n Ronald R. Pattinson Councilperron John A. Thomas Councilperson Other Gail Hutton City Attorney Warren G. Rail City Treasurer Alicia M. Wentworth City Clerk. i 1 Departments of the City Frank B. Arguello Acting City Administrator Daniel T. Villella Acting Director of Finance Janes Paiin Development Services Director Pall Cook Director of Public Works Walla W. Johnson Library Director Vincent G. Moorhouse Community Services Director i Raymond C. Picard Fire Chief Earle W. Robitailie Police Chief Edward Thompson Personnel Director f 1 i _ PEAT. `-kR'%ICK. MITCHEI.L & CO. CEPTIFIED PUBLIC ACCOU7%TA%TS I 060 NEWPOET C"TZR 301tIYE XM POnT Dr_ACn.CALIPORMIA 992060 The Honorable City Council of the City of Huntington Beach We have examined the financial statements of the various funds and account groups of the City of Huntington Beach, as listed in the accompanying table of contents, as of .tune 30, 1980 and for the year then ended. Except as sct forth in the following two paragraphs, our examin:-- ion was made in accordance with generally accep• •d auditing standards and, accordingly, included such tests of the accounting records and such other. auditing p.ocedures as we considered necessary in the circumstances. The City has not maintained adequate records of the fixed assets of the water Utility Fund. Therefore, we were unable to satisfy ourselves as to the balance of net fixed assets, stated at $22,921,595, and the related deprecia- tion expense of $678,000. The scope of our work was not sufficient to enable us to express, and •-e do not express, an opinion on the financial statements of the Water Utility Fund. The City has not maintained adequate records of the General Fixed Assets account group. Therefore, we were unable to satisfy ourselves as to the balance of the General Fixed Assets account group, stated at $18,553,761. The scope of our work was not sufficient to enable us to Express, and we do not express, an opinion on the financial statr- ments of the General Fixed Assets account group. In our opinion, the aforementioned financial statements, other than those of the Water utility Fund and General Fixed .assets account group as noted in the two preceding paragraphs, present fairly the financial position of the various funds and account groups of the City of Huntington Beach at ,tune 30, 1980 and the results of operations of the various funds and the changes in financial position of the Enterprise and Internal Service Funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. The examinatior referred to above was directed prim.:rily toward formulating an opinion on the financial statements of the various funds and account groups of the City of Huntington Beach. The supplementary data included in Schedules 1 through IX are presented for suppleamentary analysis purposes and are not necessary for a fair presentation of the financial position of the various funds and account grow,.., cf the City of Huntington Beach and the results of opmra- tions of the various fun-Is and the changes in financial position of the Enterprise and Internal Service Funds. The supplementary data have been subjected to the auditing procedures applied in the examination of the aforementioned financial statements and, in our opinion, except as stated in the second and third preceding paragraphs, a.-e stated fairly in all material respects only when considered in conjunction with the financial statements taken as a whole. l= September 15, 1980 N 5 - CITY OF HU1ti'71N6TON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT*GROUPS � .,UNE 30, 1980 Internal '.erv!ce- ' Special Self Debt General Revenue insurance Service Assets Cash and term deposits 5 5.713.707 9,732,674 4.059.017 58,124 Accounts receivable, net 96,179 42,490 - - Property taxes receivable-net of reserve for taxes 457,466 - - = Notes receivable - - - - Interest receivable 162,650 88,397 94.577 Investments, at ccst which approximates market (Note 4) 109,811 - - - Other receivables - - - - Due from other funds 184,150 109,307 12.758 - Due from other governmental units, net 244,423 812,045 - 24,543 Prepaid expenses 84,728 7,343 - - Deposits - - - - Amount a•c-ilable in Debt Service - - - - Amount to be provided for debt retirement - - - - Amount to b- provided under financing leases (Note 2) - - - - Leased facilities under financing leases (Note 2) - - - - Property plant and equipment, net of a] Imance for depre- ciation - - - - Restricted assets - cash .and investments - - - - _ Total assets S 7,053,114 10,%92,256 4,166,352 82,667 ! See actompanyin, notes to financial statements. } } 6 �- UTY OF HUNTINGTON REACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS EXHIBIT A .iUNf 30, 1950 General Capital Trust General Fixed Projects _ Enterprise _ and Agency Long Term Assets 1 ,736,498 4,662,410 1,371 .123 - - 345,200 - - - 180,774 _ 65412 - - - 12,724 - - - 5,8DO _ - 32,169 - - - - - 82,667 - - 4,755,784 - - - - 12,464,406 12,762,735 26,036,635 - - 18,563,761 391,466 - - - i [ 1 ,742,298 31.545.716 +,551 ,897 17,302,857 31,326,556 i f 7 I CM OF HiJNMG'TON BEACH -� COMBINED BkLANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS vnt::rnal JU%E 30, 1980 Service- Special Self Debt Liabilities. Encumbrances, Reserves, Contributions( General Revenue _Insurance Service Fund Balances and Retained Earnings Liabilities: Cash overdraft $ - 402.832 Accounts payable and accrued expenses 1,814,305 782,458 17,645 - Insurance claims payable (Note 8) - - 1 ,836.294 Customer deposits 270,206 1,718 - - Due to other funds 12,267 105,574 - Accrued interest payable - - - - Due to other governmental units - 105,565 Current installment of bonds/notes payable (Notes 5,6) - - - Matured interest payable - - - Deferred rental and other income (Note 2) 598,746 14,g60 - Bonds and interest payable - - - - Obligation under financing leases - - - - Bonds, net of current installment (Note 5) - - - - Notes payable, net of current installment (Note 6) - - - - Other 12,438 - - - Total liabilities 2,707,962- 1, i3 C7 1, 53.939 Encumbrances outstanding 962,889 1,307,013 - - Reserves for: Revenue bond retirement - - - Other 184.150 94.951 - - Total reserves l ,150 1,401,964 - - Contributions: In aid of construction - -From general fund - - - Total contributions - - - - Fund balances: 1 .972,90$ Unappropriated (Note 9) 7,478,671 - 82,667 • Appropriated 1 ,225,205 498,514 = _�_��_ Total fund balances 3.14+�l3 ~7.977, Reserve for Investments in general fixed assets - - - - Retained earnings: - - - Unappropriated - - 1,562,413 Appropriated 750,000 Total retained earnings - - 2 312. :3 Commitments and contingencies (Notes 3.7.9) - _ . - - Total S 7,OS3 1Imo- 10,792,256 ,352 . 7 See accompanying notes to financial statements. $ - QTY OF MUN73NGTON BEAM COMBINED BALANCE SKEET - ALL FUNDS AND ACCOU!!T GROUPS EXHIBIT A. Continued JUNE 30, 1980 General General Capital T-ust Long Term Fixed P r+;ects Enterprise_ and Agency Debt assets 48,272 429,177 - - - 295,280 174,884 - - 474 - - - 60,772 - - - 146,866 - -5,462 - - - 19.839 - - 12,464,406 - 1 ,860,000 - 4,590,000 - 1 ,885,044 - 248,451 - 1 --48,272 4,683.075 !9 .723 17,302, 57 - 658,701 - 241 .557 - - - - 241 .557 - - - - 15,121 ,693 - - - f - 1,359.932 - - - 1 ,y 1, 25 - - 1 ,035,325 - 1 ,357.174 - - � 3.'3 — - 1.357.17 - _ - - - 3i.326,556 r - 10,139.459 - - 10,139_ 59 - - 7 2,29 31.5 5.71 1.551* 97 - 17.302.857 31,326.556 1 9 T MY a HUNMNGTON BEACH GENERAL FUND EXHIBIT 8 BALANCE SHEET JUN€ 30, 1980 Assets Cash and term deposits $ 5,713,707 Accounts receivablu - net 96,179 Property taxes receivable - net 457,466 Interest receivable 162,650 Investments, at cost which approximates mark:-t 109,811 Due from other funds 184,150 Due from other governmental units 244,4k3 Prepaid expenses 84.728 Total assets $_ 7.053.114 Liabilities, Encumbrances,. Reserves and Fund Balance Liabilities: Accounts payable and accrued expenses $ 1 ,814,305 Customer deposits 270.206 Deferred rental and other income 598,746 Due to other funds 12,267 Other liabilities 12.438 Total liabilities 2.707.962 Encumbrances outstanding 962,889 Reserve for amounts due beyond one year 184,150 Fund Balance: Unappropriated 1 .972,904 Appropriated - vacation and sick leave _1 ,225,205 Total fund balance 3,198.113 Commitments and contingencies - Total liabilities, encumbrances, reserves and fund balance $ 7.053.114 i See accompanying notes to financial statements. 10 - CITY OF 11UN MGT0r BEACH GENERAL FUND EXHIBIT C f STATEMENT OF CHANGES IN FUND BALANCE ` YEAR ENDED .ERNE 30, 1980 • Fund balance, July 1 , 1979 $ 3,859,028 Add: Revenue and transfers 35.772,296 Cancellation of 1979 outstanding encumbrances 1 ,128,161 Amount reclassified from reserve 225,850 Transfer from Bond Construction Fund 77,310 Total additions 37.203.617 Deduct: Expenditures and encumbrances 37.864,532 ti Total deductions 37,864,532 Fund balance, .tune 30, 1980 $ 3,198.113 See accompanying notes to financial statements. i t { CITY OF HUN nNG PON BEACH GENERAL FIND EX"IDIT D STATEMENT OF REVENUE - ES':IMATED AND ACTUAL YEAR ENDED JUNE 30. 1980 Excess of Actual Percentage Revenue Over of Original Revised Actual _ (Under) Estimate Budget Change Budget Revenue Estimate Realized General Property Taxes Current taxes - secured $ 6,400,892 1 ,945,266 8,346,158 8,386,N54 40,296 100% Current taxes - unsecured 729,000 28.596 757,596 879,768 122,172 116 Interest and penalties 23,000 23,000 51,883 28,883 226 Aircraft 4,000 495 4,495 5,491 996 122 Other 1,073 1,073 - Total general property taxes 7.156.892 1,974.357 9.131,249 9.324.669 193,420 102 Other Local Taxes Sales and use tax 8,000,000 100,000 8,100,GOO 8,221,403 121,403 101 Franchises - utility 660,000 660,000 727.773 67,773 110 Franchises - pipeline 30,000 30,000 26.887 (3,113) 90 j In lieu - water utility 853,900 853,900 784,795 (69,105) 92 ` Occupancy tax 90,000 90,ODO 128,062 38,062 142 Cigarette tax 54n,000 54C.000 527.499 (12,501) 98 Utility tax - water 280,000 (15,000) 265.000 235.451 (29,549) 89 Utility tax - gas 812,00 (50.000) 762,000 761,903 (97) )Do Utility tax - telephone 111501000 I050,000 1,133,405 (11315) 99 Utility tax - electricity 1 ,903,000 (50,000) 1 ,853,000 2,005,07.2 152,072 108 Total other local taxes 14,318,900 (15.000) 14.303,900 14.557,330 253.430 102 Licenses and Permits License - business 700,00Q 90 406- 8- License - oil well action 990 000 990.000 b92,564 (_ , 1 l production 99o,aDO 1,092,564 102,564 �;0 License - bicycle 8,000 8.000 11 ,$03 3,803 148 License - oil inspection 74,000 74,000 72,150 (11 ,850) 97 License - aninal 145,000 145.000 87,314 (57,6861 60 Permits - building 240,000 90.000 330,000 306,522 (23.478) 93 Permits - plumbing 70,000 IO,O04 80,000 75.881 (41119) 95 permits - electrical 125,000 125,000 126.843 1 ,843 101 Permits - heating $ 42,000 42,OnO 55,368 13,368 132% .- 12 -- - C.TY OF HGiVnNGTON BEACH GENERAL FUND EXHIBIT D, Continued STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED .TUNE 30. 1980 Excess of Actual Percentage t Revenue Over of Original Revised Actual (Under) Estimate Licenses and Permits, Continued Budget Change Budget Revenue Estimate Realized i . Pernits - waste water 5 13,000 13,000 9,240 (3,760) 71% Permits - street and curb cut 40,000 40,000 54,290 14,290 136 Permits - grading 10,000 10,000 11 ,201 1 ,20i 112 Pernits - swim pool 551000 55,000 56,4�5 1 ,425 103 Permits - other 50,000 (28,000 22,000 28,759 6,759 _ 131 Total licenses and permits 2,497,000 137,000 2,634,000 2,597,954 06,06) _ 98 Fines and Forfeitures Court fines 190,000 100,000 290,000 361,348 71 ,348 125 Library fines and fees 40,000 40,000 37.529 (2.471) 94 r Total fines and forfeitures 230,000 100,000 330,000 398,877 68.877 121 Use of Money and Property Interest income 500,000 300,000 8GO1000 510,599 (2E9,401) 64 Lease - Huntington Driftwood 96,000 96,000 - (96,000) - Rentals - land 40,000 40,000 55,461 15,461 103 Rentals - park buildings 30,000 301000 7,217 (22,783) 24 Fznta:s - pier and concersic,ns 55,000 55,000 57.027 2,027 104 Rentals - beach and concessions 20G,0GO 200,000 179.572 (20,428) 90 City oil wells 60,000 80,000 140,000 207,753 67,63 148 Royalties and easements 90,000 90,000 123.995 33,995 138 # Royalties - park 700 700 677 (23) 97 Parking 1Lts 625,000 (25,000) 60,000 6U9,181 9,181 102 Sunset Vista camper facility 62,000 62,000 56,?32 (5,268) n j Showmobile rental 800 800 1 ,007 207 126 Corinunity gardens 200 200 - (20re, - Cen u al Park c�-% _essions 10,000 10,000 1 ,370 (8,6301 14 Other 10,500 10,500_ 10,109 037) 96 Total use of money and S 1,780,200 355,000 .. 2,135,200 1,820,700 (314.500) 85t i property 1 13 I CITY 4F H1;3:�i'li'1N1G7'GNI BENCH GENERAL FUND EXHIBIT 0, Continued STATEMENT OF REVENUE - ESTIMATED AND ACTUAL • YEAR ENDED JUNE 30% 1980 Excess of ,actual Percentage Revenue Over of Original Revised Actual (Under) Estimate Budget Change Budget Revenue Estimate Realized Revenue from Other Agencies j Trailer coach license fee $ 85,000 R5,000 38,707 (46,293) 46% Alcoholic beverage fee 70,OD0 70,000 70,834 334 101 County lifeguard and maintenance 130,000 130,000 117.231 (12,763) 30 Documentary transfer tax 330,00C 30,000 360,000 352,343 (7,657) a8 State oil and gas lease 90,000 90,000 95,155 91155 110 Federal oovernment 30,000 30,000 29,81R (1 ,122) 96 Motor vehicle in lieu 2.500,no0 300,000 2,800,000 2:953,676 153.676 105 Joint Powers - fire 150,000 1g0,000 Ish.'►44 4,744 103 Injury leave reimbtersements 65,000 65,000 55,275 (9,725) 85 State mandated cost reimbursewents 15,000 15,000 1 ,922 (13.078) 13 State surplus aid 1,958,891 (1 .958,891) -0- 1.9g8 (2) l00 Other 2,000 2,000 Total revenue from other agencies 5,425,891 (11628,891) 3,797,000 3.874.763 77.763 Charges for•Currene Services Zoning and subdivision 30,000 30,000 31,133 1 ,133 104 Sale of maps and publications 9,000 9,000 8,125 (875) 90 Oil well application fees 1 ,000 1 ,000 23 (977} 2 Mist. f►:ing and cert fees 1,000 1 ,000 1,320 320 132 Plan check fees 150,000 60.000 210,00D 184,571 (25,429) 88 Engineering and inspection fees 140,000 25,000 165,000 121 ,834 (43,166) 74 Weed abatement 23,000 5,099 28,099 30,100 2;001 107 Special Police services 50,000 50,()00 63,236 13,236 126 Recreation fees 160,000 160,000 253,584 93.584 158 Recreation contract 50,000 90,000 156.545 66,545 174 Exemption declarations and resources 7,000 7,000 7,321 321 105 Water quality analysis 1.000 1 ,000 - (1 ,000) - Jt,nior lifeguard program 25,200 25,200 32,436 7,236 129 l Library service 35,000 3S,000 41.573 6.573 119 Post reimbursement $ 75,00C 75,000 158.039 83,039 211% 14 --- --- � -� CITY OF HUN'.1. NGTaN BF-ACH GENERAL FUND EXHIBIT D, Continued j STATEMENT OF REVEV.UE - EST1irb1TED AMD ACJUA! YEAR ENDED JUNE 30, 1980 Excess o' Actual Percentage 1 Charges for Current Services, Original Revised Actual Rcvdnue Over of Estimate i Continued Budget Change _ sue.;et Revenue (Under) Estimate Rei.I ized Ac%,cntureland S6,000 6,000 00) Certificate of occupancy fees 10,000 10,000 10,574 5-74 I0691 Grading plan check fees - - 2,298 2"ge- - Special fee - plan check 4,500 4,500 3,109 (1 ,391) 69 Fire Department reports 400 400 249 (151) !;2 Alarm billings - 30,000 30,000 30,331 33; 101 Other 40,600 40.600 21 .393 (18.707) 54 Total charges for current services 858,700 120,099 978.799 1 ,158,294 );9,4?5 118 Other Revenue 1 Sale of property - equipment 25,000 15,000 40,000 48,613 8,613 1 2 Sate of r,terchandise 6,000 6,000 1 .160 (4,840) 19 DiscGunts earned 1,000 1 ,000 447 (553) 115 Special fees - inspection 8,030 81000 4,110 (3,390) 51 Other 5,500 5,500 35,819 30,319 0!+2 r Tonal other revenue 45,500 15,000 60,500 90,11.9 29,649 Total general fund revenue 32,313,G33 1,25L.5§S 33,37O.E�.8 33,322,736 452,08 IOt Transfers From Other Funds Special Gas Tax Fund 780,000 (30,000) 750,000 707,754 (b- .} 94 Traffic Safety Fund 800,000 800,000 886,161 _ , loi 111 Parking Meter Fund 205,000 205,000 181,431 (23,569) 89 Revenue Sharing 70.Q.30 70,000 j0,000 - - E Library Service Ftind 95.000 !50,000 145.00n1 104,213 40,787) 72 E • f t Total transfers 1,950,000 a 20,000 1 ,970,000 1,949,559 - L20.441) Total general fund revenue ! and transfers $ 34.263,083 1 .077.565 35.340,648 35,772,295 431 ,647 1011", 1 1 1 ! See accompanying notes to financial statements. I CITY OF HUNTINGTON BEACH GENERA! FUND STATEMENT CF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES YEAR FNDED .TUNE 30, 1980 Appropriations Expenditures Personal Maintenance Original Revised Services and Capital - Budget Chanqe Budget Cost Operation 0uclav , Administrative City Council $ 62,910 148 63,058 24,044 24,365 ` Nor,-Departmental 5,812,230 (416,285) 5,393,945 5,644,931 Administration 1 .047,057 94,684 1 ,141 ,741 897,269 112,205 10,071 Civic Promotion 10,300 9,571 19,871 i0,290 ` _ i Total Administrative 6,932,497 (313,882) 6,618,615 921 ,313 51191 .i91 10,071 Cormunity Services Development Services 1 ,496,260 86,258 1 ,582,518 1 ,419,743 47,122 Library 1 ,094,623 157,504 1,252,127 231,984 248,499 980 Community Services 2,966,578 527,653 3.494,231 2,160,107 413,434 823,503 Public works 4,845,566 794,985 5,640.551 4,172,357 1 ,269,839 100 f Total Community Services 10,403.027 1 ,566400 11 ,969.427 8.584,191 1 ,978.894 824,583 , Public Safety i Fire 5,793,289 286,794 6,080,063 5,732.789 326,245 15,514 Police 10,672,388 143,909 10,816.297 9.585.931 1,053.283 76,016 {� Total Public Safety 16,465,677 430.703 16,896,380 15,318,720 1 ,379,532 91 ,530 I � Support Treasurer 948,157 21 ,505 969,662 180,463 681 ,377 Attorney 347,098 24,380 372.078 315,716 34,277 Clerk 172,692 12,362 185,054 108,627 54,706 Personnel 220.600 7,186 227,786 138,388 58.093 Finance 412,506 31 ,718 444,224 435,254 (6,084) _ Total Support 2,101 ,053 97,751 21198,804 1 ,178.648 622,371 i Total General Fund Direct Costs $35 902,254 1 ,780,972 37,683,226 26,002,372 9,972,588 _G_^6,184 See accompanying notes to financial statements. CITY OF HUNTINGTON BEACH GENERAL FUND EXHIBIT E ,STATEMENT OF APPROPRIM ONS, EXPENDITURES ANG ENCUMBRANCES YEAR ENDED JUNE 30. 1980 Encur6b rances : total Excess of Appropriations Percer.•=,ge Outstanding Expenditmes and Over (Under) Expenditures of Appropriations Encumbrances Encumbrances and Encumbrances Used t 974 49.383 13,675 78'% 180.983 5,825,914 (431 ,969) 108 67,900 1 ,087,445 54,296 95 10,290 91581 52 249.857 6,973,032 (354,417) 105 9,543 1 ,476,08 106,110 93 i 51 ,775 1 ,133,238 118,889 90 64,579 3.461 ,623 32,608 99 382,998 5.825,294 (184,743) 103 508.895 11,896,563 72,864 99 6o,183 6.134,735 (54,652) 100 111 ,300 10,826,571 (10,274) 100 171 ,524 16.961 ,306 (64,926) 100 ` 11 ,574 873,414 ;6,248 90 1 .573 351.566 20,512 94 9,853 173,386 11 ,668 94 1 9.364 205,847 21.939 90 248 429.418 14,806 97 i 32,6i2 2.033.631 165.173 92 ; _ 962,888 37.864,532 (181 ,306) 100% 17 -- CITY OF HUNUNGTON BEACH -- SPECIAL REVENUE FUNDS COMBINED BALANCE SHEET .TUNE 309 1980 Special Library Assets Total Gas Tax Service Sewer Cash and "term deposits $ 9,732,674 2,823,780 2,5 ,050 Accounts receivable, net 42,490 Interest receivable 88,397 7,856 16,789 Due from other governmental units, net 312,045 198,045 28,340 Due from oche r funds 109,307 - Prepaid expenses 7.343 - S 10,792,256 3,029.681 - 2.591 .179 y Liabilities, Encumbrances, Reserves and fund Balance Llabi it.es: Cash overdraft $ 402,832 Accrued payroll 21 ,540 Accounts payable 760,918 626.760 Deposits 1 ,718 1 ,035 Due to other funds 105,574 105,565 Deferred revenue 14,960 14,960 Due to other governmenta3 units 105,565 S Total liabilities 1 ,413,107 733,360 - 14,960 Encumbrances outstanding 1 ,307,013 581 ,203 52,340 Reserves: Other _ 94,951 16,725 Total reserves 1.401 ,964 597,928 - 52,340 Fund balance (deficit) Unappropriated 7,478,671 1 ,698,393 2.523,879 Appropriated - developer deposits 498,514 - } Total fund balance (deficit) 7,:77,185 1 ,698,393 - 2,523,879 I Commitments and contingencies - -accompanying - Seenotes to financial statements. 10,792,256 3.029,681 - 2,591 , 179 t 18 1< f !. - CITY OF HUIMNGTON SLAU SPEr.1AL REVENUE FUNDS EXHIBIT F ( COMBINED BALANCE SHEET JUNE 30, 1980 Park ! Planned Federal Federal Acquisition Local stevenue Manpower Other and Traffic Parkinq Drainage _ Sharin Grant Grants Development Safety Meter 1 . i7$ 972 498,596 2,046,276 42,490 33,00 8,610 29,843 t 264,950 131 ,886 180,214 3.742 105,565 t 7.343 1 ,851 ,881 553,438 264,950 244,794 2.256,333 - !) 333,793 69.039 18,492 2,629 419 { 69,475 63,668 11015 t 683 9 105,565 - - 421 ,760 240,901 2,126 - - 310,170 124,032 139,268 31,226 47.000 341 ,396 124,032 - - 286,268 _ - } 1 ,011,971 429,406 (156,810) 3,893 1 ,967,939 498,514 1 .510.485 429,406 (15E,810) 3,893 1 .967,939 _ - 1 ,851,881 553,438 264,950 2 ,794 2,256,3y3 - 1 19 j . CITY OF HUPMNGTON BEACH SPECIAL REVENUE FUNDS COMBINED STATEMENT OF CHANGES IN FUND BALANCE YEAR ENDED JUKE 30, 1980 • P i ansted Special Local Total Gas Tax Sewer _ Drainage_ z Fund balance (deficit) at July 1 , 1979 $ 8,?07,626 1 ,644,363 2.558.315 1 ,612,Li0 Additions: Excess (deficiency) of revenues over expenditures and encumbrances (3,317,296) (1 ,389,464) (6a,067) (263.296) Cancellation of July 1 , 1979 reserve for enc+.jmbrances 2,586,855 1,443,494 34,631 161 .371 Fund balance (deficit) at June 30, 1580 S 7,977,185 1 .698,393 2,523,879 1 ,510.485 i See accompanying notes to financial statements. J ' i 20 . QTY OF HUN71NGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT G COMBINED STATEMENT OF CHAt1GES IN FUND BALANCE YEAR; ENDED JUNE 30, 1980 ! Park General Federal Acquisition Revenue Manpower Other and Library Traffic Parking Sharing Grant _ Grants D-m..velopment Service Safety Meter 935,928 (233,942) (32,506) 2,223.058 - - - e 1 i i (1 ,139,741) 77,132 36.399 (569,259) 633,219 314.140 _ 429,06 (156,810) 31893 1 ,967,939 - - — - i . 1 '� 2' •y�a.0+o�wa Cirf OF 11UNIINGTON REACH SPECIAL REVENUE FUNDS EXHIBIT H SPECIAL GAS TAX STAiE14ENT OF REVENGE, EXPENDITURES AND ENCUMBRANCES ' BUDGET ACID ACTUAL YEAR ENDED JUVE 300 1980 1 Budget actual Original evise Eudget Change Budget Expenditures Encumbrances Total Revenue: Interest income S 200,000 200,000 228,507 State Lax: Section 2107 780,000 780,000 7O7,i54 Section 2107.5 10,000 10,000 g,971 Section 2106 900,000 900,000 812,755 From Federal government 13From State of California 1 .275.217 I Other 2.297 Total revenue 1 ,850,000 11890.000 3,054.230 Expenditures and encumbrances: Transfer to general fund 780,000 780,000 707,754 707,754 Capital outlay: t Traffic signals 805,418 305,418 523.973 199,817 723,790 Street improvements 408,000 6,497,356 6,905.356 2,460,176 360,945 2,8211121 I Drainage 138,090 138,090 106,172 2,847 109,019 Other ti9,124 119.124 77,371 4,632 82,010 Total expenditures and encumbrances 1,188,000 7.559,988 8,747.980 3,875,446 568,248 4,443,694 Excess (deficiency) of revenue over expenditures and encumbrances 702,000 (7,559,988) (6,857,988) (1 .389,464) See accompanying notes to financial statements. j 22 G LhL 1 - CITY OF HUNnNGTON BEACH i SPECIAL REVENUE FU.:DS EXHIBIT I LIBRARY SERVICE F'.1ND ` STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES 8UKET AND ACTUAL f YEAR ENDED .TUNE 30, 1980 � Budget actual Original Revised Budget Change _Budget -Expenditures Encumbrances Total' P,evenue: 1 library Service Fee S 95.000 50,000 145,000 !04,212 Total revenue �95,000 50,000 145,000 I04,212 Expenditures and encumbrances: Transfer to general 'Fund 95,000 50,000 145.000 104,212 - 104,212 Excess of revenue over expenditures and encumbrances S -0- _0_ _0_ -0- N See accompanying notes to financial statements. I I i i, F 23 - 8 M -"-' CITY 0>t� Ti KUNN6TON Eh SPECIAL REVEME FUNDS EXHIBIT J E SEWER FUND � STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES i BUDGET AND ACTUAL YEAR ENDED JUNE 301k 1980 Budget Actual Original Revised Budget Change Budget Enenditures Encumbrances Total Revenue: 000$ 127;000 125, Interest income 216,333 Sewer permits 100,000 100,000 44►751 Local assessments 40,000 40,000 23•589 5 Sunset ^each Sanitary District 3 , 81 ,181 Other Total revenue 265.000 265,000 327.640 Expenditures and encumbrances: Warner Avenue - Bolsa Chica 500,000 500,000 16,827 2,200 19,027 vothard Talbert Bypass s-4er 70,000 1 .000 71 ,000 5.470 R1,941 33,411 Ellis Bypass sewer 165.000 165,000 '87,Z99 20 671 208 93 99 I Florida Street sewer 15,000 210,000 225,000 i Hunt. Hbr.-seawaier Infil. study 25,000 (60) 24,940 fi,876 1 ,528 6,404 I Talbert Ave. sewer -0- 50,000 50,000 4 4 41 4?� SuGset Beach Sanitary District _ 14,207 14,207 1�+.:99 14,199 Pump station imorovements Michael Drive storm drain 12,793 12,793 12,793 12,793 { Huntington Street sewer - 12,000 12,000 li .781 11 ,781 Other 225,000 _ (212,750) 12,250 26,129 26,129 Total expenditures and } 340 396.707 encumbrances ,0001000 $7,190 1 .087,190 34'�,361 52, Excess (deficiency) of revenue over expenditures and encumbrances S (735,004) ($7,194) {822,i90) (69,067) See accompanying notes to financial statements. 24 6 1 QTY OF flUIMNGTON REACH SPECIAL REVENUE FUNDS EXHIBIT K PLANNED LOCAL DP.AINAGF FUND ' STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1980 I Budget Actual Original Revised I Bud-et � Change Budget _ Expenditures Encumbrances Total 2evenu-: interest Income $ 175,000 175,000 226, 166 Local assessments 350,000 350,000 285,169 Total revenue 525,000 - 525,000 551 ,335 Expenditures and encumbrances: Talhe rt Avenue storm drain 1501000 1501000 146,3%.0 '46,360 i De:aware storm drain 45,012 45,012 44,034 44,034 Cypress/Ash storm drain 40,500 40,500 29,557 215,6 32,093 NG engine/pump/gear drive 84,467 84,467 84,467 84,467 Gothard/Talbert storm drain 159.250 159,250 14,250 138.170 152.420 Slater Avenue pump station 236,000 236,000 9,827 169,396 179,223 Yorktown/uorchester storm drain 180,000 180,000 488 57 545 Mola Development - 94,352 94,352 Other 40,000 2,175 42,175 41 ,127 10 41 .137 'total expenditures and encuirbramces 40,0o0 897,404 937,404 464,4-62 310,169 774,631 Excess (deficiency) of revenue over expenditures and encum- < < prances $ 485,000 (897,404) (412,404) (263,296) See accompanying no'.es to financial statements. 7 25 CITY OF HUhi'INGTO77 REACH ' SPECIAL REVENUE FUNDS EXHIBIT L GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1980 Budget _ Actual Original Revised Budget Change _ Budget Expenditures Encumbrances Total Revenue: Interest income $ 40,000 40,000 135,207 Federal revenue spar?ng 1 ,582,554 1 ,582,554 1 ,541 .555 General revenue sharing-Title 11 10,000 10,000 - Other .-- 336 Total revenue 1 ,632.554 1 ,632,554 1 ,677, �a Expenditures and encumbrancest Transfer to general fund 70,000 70,000 70,000 70,000 Transfer to capital outlay fund 2,118,000 2,118.000 21118,000 2,118.000 Fire equipment 42,994 42,994 36,859 6,006 42,865 Fire paramedic equipment 13.139 13,139 6.996 6,143 13,139 Fire vehicles 101 ,122 101 ,122 2,500 98,622 101 ,122 Fire building Improvements 27.680 27,680 27,680 27,68o Poilce vehicles 162,646 162,646 156,054 156,054 Public Works vehicles 70.447 70,447 48,591 2,291 50,882 Public Works shamel ash 39,556 ?9.556 38.676 38,676 Public Works heavy equipment 20,424 20,724 20,000 20,OC-; Public Works other 13, 70 13. 70 13,161 13.1f�I Library books 60,305 b0,305 55,213 4,978 60,191 Library security system 11 ,990 11 ,990 12,092 12,092 Library other 11,652 11 ,652 91461 9,461 Community Svcs. equipment 8,610 8,610 8,610 8,610 Community Svcs. gym 7,215 7,215 7,166 7,166 Community Svcs. pier 39,893 39,893 39,358 39,358 Data Processing equipment 23,181 :3,181 17,188 5,992 23,180 Office equipment 4,362 4,362 4,362 4,362 disc; capital ltnms 673 673 840 840 Total expenditures and I 2�692,807 I24,032 2,816,83q encumbrances 2Ileeloeo 659,659 2,847,659 r 26 t ---- CITY OF HUN71NGTON REACH SPECIAL REVENUE FUNDS EXHIBIT L, Continued GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES s BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1980 Budget Actual Original Revised � Budget _ Change Budget Expenditures Encumbrances Total f Excess (deficiency) of revenue i over expenditures and encum- brances S (555,446) (659,659) (1 .215.105) t'. ,139,741) 1 ( 'ee accompanying notes to financial statements. 1 f i i i i i 1 27 —_ CITY OF HUNTINGTON REACH SPECIAL REVENUE F'U10S EXHIBIT M � 4 FEDERAL MANPOWER GRANT FUND 3TATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL � YEAR ENDED JUNE 30, 19C0 Budget Actual Original revised Budget Change Budget Expenditures Encumbrances Total 5 Revenue, Title 1 program $ 51 30- Title 11 program 288,3C;, Title VI program 435,290 5urrrner Youth program 210,846 Other _ 12,693 _ Total revenue - Gg8,520 Expenditures and encumbrances: CETA Title 1 program 4,C4O 4,090 179,570 179,570 r+ CETA Title 11 program 1,097 1 ,097 215,562 215,562 1 CETA Title VI program 17,E75 17.175 526,i56 _ 526.256 Total expenditures and ` encumbrances - 22,362 22,367 921 ,388 — 921 .388 Excess (deficiency) of revenue over expenditures and encumbrances $ - (22.362) (22,362) '77,1'32 Sec accompanying notes to financial statements. ti i 28 4 a� t� I i _ CITY OF 11UNnNGT0N REACH ------ SPEC IAL REVENUE FiNDS EXHIBIT N OTHEk GRANTS FI STATEMENT OF REVENUE, EXPENDITUR:: AND ENCUMMANCES BUDGET AND ACTUAL YEAR ENDED JUNE 301 Budget Actual Original Revised Revenue:Robbery Suppression 6 Apprehension 3 _ ge Budget Chance Budt _ - Expenditures Encumbrances Total - SB 821 Bicycle Lane 990, - , SET Program 7 7'990 1 125 25 Juvenile Diversion/Treatment �79.767 279,767 15,522 County Revenue Sharing 60,488 60,438 244,442 Rousing & Comm. Development 1 ,365,000 1 ,635,000 3,000,000 69,908 De?t. of Transporcation Grant 83,73 83,737 871 ,368 1 Neighborhood Watch Grant I1,OO ' LOCO 30,193 Downtown C'.eanup 10,978 Agency on Agency Title 1118 24,9 24,9 19,934 Delinquency Program 4.971 4,971 4,971 LCP Grant 8,567 Coastal Energy Impact Program ?�,78] F]A Grant j,988 -�.. 225 { Total revenue 1 ,365,000 2,107,906 3,472.90fi _ .- 1 ,396,974 � Expenditures and encumbrances: EDA Grant 8,883 8,8$3 4,725 Neighborhood Watch 11 ,000 11 ,000 .7�5 Juvenile Diversion/Treatment 14,631 10,978 307,016 307,016 2l4,631 214,E31 Bike Trails 7,950 7.990 13,868 l4,01 Housing and Community Development 1 ,365,000 1 ,703,083 3,068,083 914,088 913,868 Dept. of Transportation Grant 83,083 68,083 14,088 Robbery Suppression & App:ehenslon 723 52,723 LCP Grant 14,375 t4,375 State Litter Grant 33 33 78,491 74,252 24,953 24,953 8,4g1 Seniors Outreach Program 65,825 65,825 52444 8'49l , - 52.444 Total expenditures an•.'. encumbrances 1 ,365,000 2,212,790 3,577,790 1 , 1 ,360,575 � 360 575 Excess (deficiency) of revenue over expenditures - !and encumbrances S_ f101,884) (104,884) ,5,399 See ac_om an 29 --� p yi^g notes to financial statements. CITY OF UUr.'M EG')iON BEACH SPECIAL REVENUE FUNDS EXHIBIT 0 PARK ACQUISITION AND DEVELOPMENT FUND 1 STATEMENT OF REV`HUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1980 Budget _ Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: Interest income 5 245832 Subdivision license fee 850,000 850,000 591 :201 Unit tot fee 175,000 175,000 211 ,634 City gym and pool grant 35,576 35,576 35,576 City gym and pool - development 26,089 26,08g 23.4$0 H.U.O. Central Park 143.771 143,771 143,771 Dumping fees 34,�47 From .state of California 15,495 i Other 7.900 Total revenue 1.025,000 205,436 i ,230,436 _ 1 ,309,136 Expenditures and encumbrances: Operating expenses 39,08) 39,081 28,021 9,422 37.443 i Park improvements: Faith Lutheran 15,000 (3 A 0 W 12,000 12,000 12,000 Huntington Central Park 1 ,000,090 83,232 1 ,083,232 808,765 192,842 1 ,00) ,607 City gym and pool parking lot 318,000 (200,288) 117,712 111 ,712 11,379 116,091 Landscape architecture 50,000 13,537 63,537 56,815 5,889 62.704 Marina Park 94,415 94,415 81,295 111 .300 92.595 i Taylor Park 35,923 35,923 35,911 35,911 Oid Town 240,984 240,984 239,492 239,492 ' Sunset Heights 134,122 134,122 132,157 132,157 Sims Grove 24,556 24,556 24,556 24,556 i Murdy Park 20,870 20,870 20,869 20,869 LeBard Park 11 ,450 11 ,450 5,197 6,250 11,447 Newland Park 14,056 14,056 14,854 14,894 Moffett Park 29,466 29,466 28,796 28,796 3 E 1 30 OTT OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT 0, Continued PARk ACQUISITION AND DEVELOPMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND EHCUKBRANCES -BUDGET AND ACTUAL YEAR ENDED .TUNE 30. 1980 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total (Expenditures and encumbrances, cont.) Unallocated and other 507,032 (224,264) 282,768 38,648 9,186 47,334 Total e::pendi tares and encumbrances 1 ,890,032 314.140 2,204,172 1 ,639,128 239.268 1 ,878,396 Excess (deficiency) of revenue over expenditures and encumbrances S (865,032) 008,704) (973.736) (5=-),260) See accompanying notes to financial statements. f 1 1 t � 31 _.i CITY OF HUNTIN+GTON BEACH SPECIAL REVENUE FUNDS EXHIBIT P TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 309 1980 4 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: 886,161 Traffic Tines S 800.000 800,000 Total revenue 800,000 800,000 886,161 Expenditures and encumbrances: _ Transfer to general fund 800,000 800.000 $8b,1bi 886,161 Excess of revenue over expenditures and encumbrances $ _0 j l i f See accompanying notes to financial stateFments. 32 i _ CITY OF HUN I3NGTON BEACH i SPECIAL REVENUE FUNDS EXHIBIT Q PARKING METER FURL STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL. YEAR ENDED JUNE 30, 1980 Budget Actual Origins' Revised _ _ Budget Change_ _Budget Expenditures Encumbrances Total Revenue: ! Parking metfrs: Corrrercial $ 2P1000 5,000 25,000 15,513 Residential 15,000 3,000 18,000 13,089 Pacific Coast Highway 17G,000 (8,000) 102,000 152,$29 Total revenue 205,000 - 205,000 181 ,431 1 Expendituret and encumbrances: Transfer to general fund _205:000 - 205,000 181 ,431 181 ,431 i Excess of revei,;ie over expenditures and encumbrances $ - - { i See accompanying notes to financiai statements. i i 33 CITY OF HUN71NGTON BEACH INTERNAL SERVICE FUNDS - SELF !NSUP :r C EXHIBIT R COMBINED ?ALANCE SHEET jUNE 30, 1980 i Public Employee Workman's +, Assets Tctal i_labiiity Health Compensation - Current assets: Cash and tarm deposits $ 4,055,017 1 ,808,976 233,507 2,016,534 Interest receivable 94,577 1 ,400 93,177 Due from other funds 12,758 _ 12,7:8 S 4,166.352 808�97b z34,907 2,122,469 Liabilities and Retained Earnings Current liabilities: i ,Accrued pay-oil Accounts payable $ 16:560 1 ,085 Insurance claims payabip 1 ,836,2y4 16,560 1 ,008,750 203,510 _ 624,034 j Total liabi? sties 1 ,853,939 1 ,008,750 203,510 641 ,679 Retained earnings: ! Appropriated for future insurance claims 750.000 750,000 Unappropriated 1 ,562,413 50,22b 31 .397 _ 1 .480.790 Total ret.,:ned earnings 2.312,413 800,226 31 ,397 1 ,480.790 Com�itments and contingencies - _ _ _ S 4,166,352 1 ,808,976 294,90i 2,122,469 See accompanying notes to financial statements. 1< 34 T 1 - CITY OF HUNMN GTON BLACH --- INTERNAL SERVICE FUNDS - SELF :NSURANCE EXHIBIT S COMBINED STATEMENT OF REVENUE, EXPE-NSES AND RETAINED EARNINGS I YEAR ENDED JUNE 30, 1980 Public Employee Wo rkm--n I s Total Liability Health Compensation Revenue: Premiums - employer contribution $ 18.353 18,353 Premiums - employee contribution 553,727 553,727 Premiums - from other funds 894,229 364,218 530,011 } Interest income 362,596 161 ,040 15,971 1$5,585 Total revenue 1 ,828,905 525.258 588,C, 715,596 Expenses: Workman's compensation claims 53,106 53,106 } Employee medical claims :13,703 513,703 Contractual services 330,75y 33C,759 Disability pay",.ats 127,321 127,321 Personal service cost 39,492 39,492 Operating expenses 662,269 619,318 42,951 Other 4,152 4,152 j Total expenses 1 .730,802 619,318 556,654 554,830 1 ` Net income (loss) S 98,103 (94,060) 31 ,397 _ 160,766 Retained earnings at July 1 , 1979 S 2,214,310 - - 2,214,310 Add: Net income (loss) 98,103 (94,060) 31 ,397 160,766 Transfer from workman's compensation fund 894,286 894,286 iransier to public liabili�y fund (894,286) (894.286) r Retained earnings at June '40, 1980 S 2,312,413 800,226 31 ,397 1 ,480,790 t Ser accompanying notes to financial statements. 1 35 I CITY OF HUNMNGTON BEACH - SELF INSURAHCF1NTERNA. SPr3 EXHIBIT T COMBINED STATEMENT OF CHANGES iN riruy;C1AL POSITION YEAR ENDED JUNE 30, i 980 r r i • Total Public Employee _ Workman's Liability Neaith Compensation Sources of Working Capital : Current operations: Net income (loss) $ 98,103 {94,060) Transfer from worltmin's compensation, funs $a4,286 31,397 16o ;a6 (894:286) Increase (decrease) in working capital S 98,103• _ 'DO,22b 31 ,397 (733,520) Changes in components of working capital : Increase (decrease) in current assets: Casio and term deposits $ 752,858 i ,808 g76 Interest receivable 46,849 233,507 (1 ,289.625) Due frim other funds 12,758 1 ,400 45,449 ! - ---- 12,758 Total increase in current assets 812.465 1 ,808,976 234,907 (1 ,231 ,418) Decrease (increase) In current liabilities: Due to other funds 3,45i3 Accrued payrol 1 3$3j 3,458 { Accounts payable t4351) {383) Insurance Clair., Rayable (713,086) (1,n08,750) (203,510) 499.i74 ) i Total increase in current liabilities {714,362j (1 ,008,750j t203,S10) 497,898 increase in working capital $ 9$,iO3 $00,226 ----- 31 .397 (733,520) See accompanying notes to financial statements. I 36 1 . CITY OF tiilrl'I NGTON BEACH l DEBT SERVICE FUNDS C"'Nc0 BALANCE SHEET EXHIBIT 0 JWIE 30, 1980 1955 water Bond 1970 Park Bond Interest and interest and Total Redemption Fund Redemption Fund Assets -- Cash and term deposits $ 58,124 54,849 f Due from other governmental units, net of 3.275 allowance for delinquent property taxes 24,s43 1 ,688 22.$55 $ 82,667 56,537 26,130 Liabilities and Fund Balance Liabilities Fund balance Be.,667 56,537 26,130 i $ 82,667 56,537 26,130 See accompanying notes to financial statements. i ! t i � � r 37 ---- CITY OF HUNTINGEON BEACH -DEBT SERVICE FUNDS EXHIBIT V -COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE YEAR ENDED JUNE 30, 1980 • i955 Water Bond 1970 Park Bond Interest and Interest and Total Redemption Fund Redemption Fund Fund Revenue: balance (deficit) at July i , 1979 $ 52,280 53,942 (1 ,662) Revenue: Property taxes 530.194 38,413 1'91 ,781 Interest 4,179 341 _ 3,838 I Total revenue 534,373 38,754 495,619 Expenditures: Pedemption of matured bonds 220,000 35,000 185,000 inerest on bonds 283,425 1 ,050 282,375 Other 561 109 452 Total expenditures 503,986 36,159 467,827 Excess of revenue over expenditures 30,387 2,595 27,792 Fund balance at .tune 30, 1980 $ 82,667 56,537 26,130 l i k See accompanying notes to financial statements. ' -- 38 .� CITY OF HUMINGTON BEACH f CAPITAL PROJECTS FUNDS EXHIBIT W COMBINED BALANCE SHEET JUNE 30, 1980 ' Special 1955 Water ` Capital Bond Total Outlay Construction t Assets Cash $ 1 ,736,498 1 ,736,498 - 1 Due From other entities 5,800 MOO 1 ,742,298 1 ,742,298 - Liabilities, Reserves and Fund Balance Accounts payable $ 4a,272 48,272 Reserve for en,:umbrances 658,7O1 E58,701 . Unappropriated fund balance 1 ,035,325 11035,325 - $ 1 ,742,298 1 ,742,298 - C i See accompanying notes to financial statements. 1 r -- 39 CITY OF HUNTINGTON AEA01 i CAPITAL PROJECTS FUNDS EXHIBIT X COMBINED STATEMENT OF REVENUE, EXPENDITURES, ENCUMBRANCES AND FUND BALANCE } YEAR ENDED JUNE 30, 1980 • Special Capital 1955 Bond Total Outlay Construction Fund balance at July 1 , 1979 $ 647,302 569,992 77,310 Add: Revenue: Interest revenue 76,736 76,736 Transfer from Federal Revenue Sharing Fund 2,118,000 2,118.000 Tota: revenue 2,194,736 2,194,736 - Deduct: Expenditures and encumbrances: Administration equipment 27,108 27,108 Administration vehicles 19,919 19,919 City Clerk equipment 1 ,813 1 ,813 Finance equipment 1 ,136 1 ,136 Fire equipment 45,684 45,6,24 Fire equipment paramedics 12,336 12,336 I Fire vehicles 24,137 24,137 Fire building improvements 5,146 5,146 Police equipment 91,193 91 .193 Police vehicles 283.530 283.530 Police heliport 6.717 6,717 Development Services equipment 9.316 9,316 t Library books 49,992 49,992 Library modifications 39,189 39,189 Library vehicles 6,100 6,100 Library equipment 25,648 25,648 I Community Services equipment 79,707 79.707 Community Services building improvements 85,766 85,766 Community Services vehicles 115,806 115,806 Public Works equipment 143.909 143,909 Public works vehicles 357,536 357,536 4o - CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS EXHIBIT X, Continued COMBINED STATEMENT OF REVENUE, EXPENDITURES, ENCUMBRANCES AND FUND BALANCE YEAR ENDED JUNE 30, 1980 Special Capital 1955 Bond ' Total Outlay Construction {Expenditures and encumbrances, continued) — Public Works building modifications $ 52,611 52,611 Public Works other 144,763 144,763 Shammei Ash 99.354 99.354 Other 3,648 3,648 Total expenditures and encumbrances 1 ,732,065 1 ,732,065 Less expenditures encumbered in the prior year 2,662 2,662 - Net expenditures and encumbrances 1 ,729.403 1 ,729,403 - Transfer of fund balance to General Fund 77,310 - 77,310 ! Total deductions 1 ,806,713 1 ,7219,403 77,310 Fund balance at June 30, 1980 $ 1 ,035,325 1 ,035.325 - i i 1 1 41 CITY OF HUNnNGTON BEA01 ENTERPRISE FUNDS EXHIBIT Y COMBINED BALARCE SHEET JUNE 30, 1980 Water Utility Meadowlark Golf Assets _ -- Total Fund Course Fund Current assets: Cash and term deposits 62$ 6 4i0 4 ' Accounts receivable: 5e75, ,379 87,03 � Trade, net of allowance of $2,000 345,200 345,200 Other 12,724 12,724 Deposits 32,269 32,269 Interest receivable 65,01-2 65.012 Total current assets 5,117,615 5,030,584 87,031 Property, nlZi:t and equipment, net of allowance for depreciation 26,036,635 22,921 ,595 3,115,040 f Restricted assets - cash with fiscal agent 391 ,460 391 .466 $ 31 ,545,i16 28,343,645 2_ 3, a2,071 I 1 See accompanying notes to financial statements. l I 42 i CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS EXHIBIT Y Continued t nued COMBINED BALANCE SHEET JUNE 30, 1980 Water Utility Meadowlark Golf Total Fund Course Fund 1 ►.iabilities. Reserves, Contributions and Retained Earnings Accumulated De is t Current liabilities payable from current assets) : Accounts payable $ 402,838 402,838 Custor:er deposits 295,280 295,280 Accrued interest payable 46,325 b6,325 Accrued expenses 26,339 26,339 Due to other funds 474 474 Current installment of long term note payable 16,866 16,866 Current installment of bonds payable 130,000 130,000 Current liabilities (payable from restricted assets) : 'natured interest payable 5,462 5,462 Accrued interest payable 14,447 14,447 Total current liabilities " 38,03 r— !ong term note payable, net of current ' in-Ltaliment 1 ,885,044 1 ,885,044 Bonds payable in future years net of current install- rrent 1 ,860,000 1,860,000 Total liabilities +, ,4 2, 3 0 1 ,9 ,�35 Re,erve for revenue bond retirement f Contributions: In aid of construction 15,121 ,693 15,121 ,693 Fran general fund 1 ,359,932 92,608 1 .267,324 f Total contributions 1 25 15,21 3D� 1 ,2 1,32 Retained earnings (accumulated deficit) 10,139, 59 10,152,9 7 13, Commitments and contingencies _ _ $ 31 ,545,716 28,343,645 3,202.071 43 CITY 0>r HUN711VGTON BEACH I WATER UTILITY FUND EXHIBIT Z STATEMENT OF REVENUE AND EXPENSES YEAR ENDED JUNE 30, 1980 Operating Revenue: Metered water sales $ 5,142,089 Municipal water sales 117,177 Fire hydrant rentals 61 ,236 Acreag-- fees 20,650 Tract fees 18,775 New, services 1 ,534 Other water services 40,104 Total operating revenue _ 5,451 .565 Operating Expenses: Source of supply 452,184 Pumping expense 1 ,147048 Water treatment 35,0'35 Transmission and distribution 523,518 Administrative and general 699,953 Contributions to general fund in lieu of taxes 784,795 Depreciation 678,000 Total operating expenses 4,321 .233 Operating income. 1 ,130,332 Hon-operating Income: ' Interest income 416,805 Other 214,555 { Total non-operating income 631 .360 Total operating and non-operating Income I ,j6i ,692 Non-operating Expense Bond interest 86,927 Net income S 1 ,674.765 See accompanying notes to financial statements. i CITY OF HUNTINGTON BEACH i WATER UTILITY FUND EXHIBIT AA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1980 Retained earnings at July 1 , 1979 $ 8,478,182 Add: Net income 1 ,674,765 Retained earnings at June 30, 1980 $ 10,152,947 See accompanying notes to financial statements. k 1 9 45 CITY OF HUNUNGTON BEACH WATER UTILITY FUND EXHIBIT BB STATEMENT OF CHARGES IN FINANCIAL POSITION YEAR ENDED JUNE 301 1960 Sources of Working Capital : Current operations: Net earnings $ 1 ,674,765 Items which do not require an outlay of working capital : Depreciation 678,000 Working capital provided from operations 2,352,765 Increase in reserve for revenue bond retirement 46,633 Total working capital provided 2,399,398 Disposition of Working Capital : Additions to fixed assets 769,( °'5 I Increase in restricted assets - cash with fiscal agent 34,180 Reclassification and redemption of long term bonds payable 170,000 Total working capital used 973,865 1 Increase in working capita) $ 1 ,425,533 Changes in components of ►corking capita) : Increase (decrease) in current assets: f Cast, and term deposits $ 950,140 Accounts receivable, trade (net) 64,931 Accounts receivable, other (net) (4,591) Interest receivable (1G,094) Due from other funds (15,179) Total 98S.?07 i 46 4 CITY OF Ht1MINGTON BEACH f WATER UTILITY FUND EXHIBIT BE, Continued j STATEMENT OF CHANGES IN =INANCIAL POSITION YEAR ENDED JUNE 30, 1980 Changes in components of working capital , continued Decrease increase in current liabilities: Accounts payable $ 482,270 Customer deposits (50,041) Accrued expenses (6,507) Due to other funds (474) Accrued interest payable 478 Matured interest payable 14,6OO Total 440,326 Increase in a:orking capital $ 1 ,425,533 I it k f See accompanying notes to financial statements. i .a 1 47 CITY OF NUN'Y1NGT0 N BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT CC STATEMENT OF REVENUE AND EXPENSES J YEAR ENDED JUNE 30, 1980 Revenue: Lease revenue $ 150,000 Interest income 9,833 Total revenue 159,833 Expenses: !merest 134.237 Depreciation 15.760 Total expenses 149.997 Net income S 9.836 i I kSee accompanying notes to financial statements. I } t 4 � + i f � 48 i aTY OF HUNInN TON BEACH MEADOWLARK GOLF COURSE rUND EXHIBIT DD STATEMENT OF CHANGES IN RETAINED DEFICIT YEAR ENDED JUNE 30, 1980 � 1 Accumulated deficit at July 1 , 1979 S 23,324 j Add: Net income 9.836 1 Accumulated deficit at June 30, 1980 13,E+88 See accompanying notes to financial statements. I t l } 49 CITY GF HUPMNGTON BEACH - S MEADOWLARK GOLF COURSE FUND EXHIBIT EE STATEMENT OF CHANGES IN FINANCIAL POSITION 1 YEAR ENDED JUNE 30, 1980 -� Sources of Working Capital : Net income $ 9,836 q Items which do not require an outlay of working capital Depreciation 15,760 ' Working capital provided from operations 25,596 Disposition of Working Capital : Reclassification of current portion of notes payable _ 16.866 Increase in working capital S 8.730 Changes in the components of v.�orking capital : Increase (decrease) in current assets Cash $ ii ,234 Interest receivable (1 ,401) Total increase in current assets 9,833 (increase) Decrease in current liabilities: Increase in current portion of notes payable 0 ,103) Total increase in current liabilities (1 ,103) Increase in working capital $ 8.730 ! I � - See accompanying notes to financial statements. t 1 J D 50 -- CITY OF Hu19TIHGTON BEAM TRUST AND AGENCY FUNDS EXHIBIT FF COMBINED BALANCE SHEET .TUNE 30, 1980 Employee Special Deferred Improvement Total Deposit Compensation Act 1+ Assets � Cash and term deposits $ 1 ,37i ,123 174,884 1 ,17G,400 19.839 Notes receivable, net of unearned eiscount c� $32,804 180,774 i40.774 Total assets $ 1 ,551 ,897 174,884 1 ,357,174 19,839 Liabilities and Fund Balance I Liabilities: Refundable deposits $ 174,884 174,884 Bond principal and interest s oayablc 19,839 19.839 Total liabilities 194,723 174,884 - 19,839 i Fund balance 1 ,357,174 - 1 ,357.174 - I $ 1 ,551 .897 174,884 1 ,357.174 19,839 II y II I See accompanying notes to financial statements. 1 a 1 � i 51 _ 1 --- �} f CITY OF HUNTINOTON BEACH TRUST AND AGENCY FUNDS EXHi;:IT GG COMBINED STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALAtti'E YEAR ENDED JUNE 30, 1980 Employee Special Deferred Improvement Total Deaosit Compensation Act Fund balance at July 1 , 1979 $ 1 ,094,901 - 1 ,094,901 - Add: ) Interest earned 138,902 138,902 } Contributions received 196,818 196,818 Total additions and fund balance 1 ,430,621 - 1 ,430,621 - Less: Paid to participants in employee deferred compensation plan 73,E+47 73,447 Total deductions 73,447 - 73,447 - Fund balance at ,tune 30, 1980 $ 1,357,174 - 1 ,357,174 - See accompanying notes to financial statements. I ` I i 1 52 i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS JUNE 30, 1980 • Note 1 Summary of Significant Accounting Policies Description of Funds and Account Groups The basic accounting and reporting entity in government is a "fund." A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts, recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which segregate specific ac- tivities or attain certain objectives in accordance with special regulations, restrictions or limitations. Pecause-a clear distinction should be made between the accounts relating to current assets and liabilities and those related to fixed assets and long term liabil€ties, a self-balancing "group of accounts" is utilized. The types of funds and account groups and their respective definitions are as follows: Funds a) The General Fund - to account for the City's ordinary operations which are financed from taxes and other general revenues and for all financial transactions not properly accounted for in another type of fund. b) Special Revenue Funds - to account for the proceeds from specific revenue sources (other than special assessments) or to finance specified activities,as required by law or administrative regulation. c) Internal Service Funds - to account for financing and providing goods and services by one department to other departments of the City. d) Debt Service funds - to account for the payment of interest and principai of general obligation long term ifebt. e) Capital Project Funds - to account for the financial resources used for the acquisition of capital facilities other than those financed by special assessment and enterprise funds. f) Enterprise Funds - to account for the financing of services to the general public where all or most of the costs involved are financed through charges to users of such services. g) Trust and Agency Funds - to account for resources held by a governmental unit as trustee or agent for individuals, private organizations, and other governmental units. f Account Groups a) General Fixed Assets Group of Accounts - to account for the general fixed assets of the City other } than those accounted for in the enterprise or trust funds. b) General Long Term Debt _Group of Accounts - to account for the general obligation long term debt of The City.. 53 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note ! Summary of Significant Accounting Policies, Continued Basis of Accounting The accrual basis of accounting is followed for enterprise, internal service, and trust and agency funds. The accrual basis of accounting records revenues when earned and expenditures when they result in liabi- lities for benefits received, notwithstanding tt -t the receipt of the revenue or the payment of the expenditure may take place, in whole or in part, in another accounting period. The modified accrual basis of accounting IL followed for the general , special revenue, debt service and capital project funds. The modified accrual basis of accounting records expenditures, other than accrued interest on general long-term debt, at the time liabilities are incurred and revenues when received i in cash, except for material and/or avaitable revenues which should be accrued to reflect properly taxes levied and revenues earned. Investments Investments are stated at cost, which approximate market value, Investments generally consist of Federal Government-backed securities, bankers acceptances and municipal securities (Note 5). Fixed Assets M`4 The general fixed assets of the City are fixed assets which are not accounted for in the enterprise funds. S They are accounted for in a separate self-balancing group of accounts described as the "General Fixed Assets Group of Accounts." General fixed assets are not depreciated. General fixed assets acquired by the City prior to July 1 , 1973 and during 1977 - 1980 are not recorded in the City's accounting records. General fixed assets, except. municipal improvements other than buildings acquired from July 1 , 1??3 through June 30, 1976 are recorded at cost in the City's accounting records. The accounts of the water utility fund include $29,169,156 of property and equipment, iess $6,247,561 accumulated depreciation. Of these assets, approximately $8,373,000 represent water service assets which have been donated to the City by independent contractors prior to June 30, 1968. Such donated assets have + been recorded at values estimated by City personnel . During 1977 and 1978 the City conducted an inventory of fixed assets of the water utility fund. This inventory resulted in the recording of approximately $1 ,894,000 in water service assets that were previously unrecorded. The City's evaluation of its water utility fixed assets is still continuing. Depreciation of fixed assets is charged to operations using the straight-line method, based an the estimated useful life of an asset within-a particular group as follows: 54 CITY OF W INCTON REACH NOTES TO FINANCIAL STATEMENTS, Continued Note I Summary of S} :nificant Accountinq Pt,licies, Continued • a Asset Group Life ` Production and pumping plant 15-40 years Transmission and distribution plant 25-75 years General plant 1G-30 years Transportation equipment 5-10 years The Meadowlark Golf Course property and equipment are stated at cost and are depreciated using the straight- line method over the estimated useful lives of the assets. General Long Term Debt General long term debt, except for enterprise funds, is not carried with the current liabilities of a fund, but rather is recorded in a separate self-balancing group of accounts described as the "General Long Term Debt Group o` Accounts." (Notes 2, 3, and 6). Budgetary Control Budgetary control is an essential element in governmental accounting and reporting. The City adopts an annual budget and utilizes an "encumbrance system." Under this procedure, obligations or commit- ments in the Form of purchase orders or contracts which are chargeable to an appropriation are treated as expenditures in the operating statements of the General and Special -Revenue funds. Vacation and Sick Leave It is the policy of the City to record the cost of vacation and sick leave when paid. At June 30, 1980 the total unrecorded liability for vacation and sick leave accumulated by City employees was approximately $2,043,405. In the genera? fund, fund balance has been partially restricted for this amount. Pension Plan Substantially all City employees participate in the Public Employees Retirement System administered by the State of California. The total pension expense recognized by the City for the fiscal year ended June 30, 1980 was approximately $3,346,70. At June 30, 1980: the excess of the actuaridlly computed value of vested benefits over available assets, if any, was not available. f Deferred Employee Compensation I The City has initiated a deferred compensation plan whereby eligible City employees may elect to defer a portion of their earnings for Feceral income tax purposes. The deferred compensation plan has been 55- -� CITY OF HUIMNGTON BEACH - NOTES TO FIWJ4CIAL STATEMENTS, Continued Note l Summary of Significant Accounting Policies, Continued_ • approved by the Internal Revenue Service (Service). The Service stipulated in its approval that legal title to the deferred compensation funds, together with any interest thereon, must rest with the City. For purposes of financial statement presentation, these deferred compensation funds have been treated as a separate trust fund of the City. Note 2 Leases The City has entered into two noncancellable lease and sublease agreements with the Huntington Beach Public Facilities Corporation (Corpora Lion) for the Huntington Beach Civic Center complex and the Central Library. Under both agreements, the City is to pay all taxes, insurance ,administrative and maintenance costs. Title to the site improvements will pass to the City at the termination of the leaves. The City has determined that such leases are capital leases and require using the financing method. Ur ' the ' financing method a transaction is regarded as an installment purchase, whereby an asset and ref, iia i 9 � p Y L•i l ity are recorder'. Annual rental payments are treated as reductions of the liability. Advar, itals k from the Corporation received by th= City for lease of the site upon which the 6acilities are _:ucted are recorded as deferred rental income in the general fund and are being amortized over the f the sublease. A description of each lease agreement is as fulic-s: a) Civic Center This involves a noncancellable lease and sublease agreement with the C . poration fot the Huntington Beach Civic Center. The City has leased the Civic Center site to t' : Corporation for $350,000 advance rental. The term of the lease is from January 15, 1976 t3 onp week after the terminat'on of the sublease. _-_ The Corporation has subleased the civic center site and improvements to the City for $954,900 annual base rental. The sublease commenced July 1, 1974 for a :arm of 30 years or until atl debts of Corporation related to the civic center have been di%charged, whichever comes First. b) Central Library This involves a noncancellable lease ant .'ith the Corporation For the Central Library. The City lies leased the site _ motion for $300,000 advance rental. The term I of the lease is from September I , u, „at- week after termination of the sublease. — -- 56 _ CITY OF HUNT NGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 2 t_aases, Continued TLe Corporatlon has subleased the library site and improvements to the City for $399,000 annual j base rental . The sublease commenced February 15, 1957 for a term of 30 years or until all debts of the Corporation r%lated to the library haves been discharged, whichever coitus first. Nota 3 Commitments The City has entered into the following agreements: i a} In 1967, the City entered into an agreement for the lease of water storage capacity in the San Joaquin Reservoir for a term of 50 years at are annual rental of $100,000 for the first ten years, I $95.000 for the next ten years, $90,000 for the next seven years, and $10,000 through the remaining term of the lease. The City will hold no ownership interest In the San Joaquin. Reservoir at the conclusion of the lease. b} in 1969, the City entered into an agreement with the Huntington Beach Parking Authority for the lease of certain park}na facilities. The term of the lease is 24 years or until all of the Parking Authority's 1968 revenue bonds have been retired. Annual base rental payments under the lease agreement are $170,050. Ownership of the parking facility will remain with the Parking Authority. Minimum aggregate rental commitments under the above agreements are as follows: Year Amount 1931 $ 2C5,050 1982 265,:.50 I 1983 264,050 1984 264,050 1985 264,050 1986-1590 1,305,250 V 1991-1995 E30,100 1996-2000 ;a,000 Remaindar S 160,000 I The City has entered Into agreements with contractors which generally provide for possible reimburse- ment to the contractors of costs ►ncurred In constructing water, sewer, and drainage facilities. The extent of such reimbursement will generally be limited to subsequent fees which are collected from other users of the facilities and which are not used to provide improvements to the facilities. The City recognizes fees as revenue as they are collected and charges subsequent payments to expenditures as they are made. 57 f Q TY OF NurrnHCT4n BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 4 Investments in Marketable Securities A summary of the City's marketable securities at Juna 30, 1980 is as follows: Approx. Interest Principal Market Descri tion Rates Maturlty Amount Cost Value General Fund City of Huntington Beach 1970 Park Bonds 6.0 1900 $ 25,000 24,509 20,250 t Huntington Beach Parking authority 1968 Parking Revenue Bonds 5-5.25 1984-1998 100.000 95,302 80,000 Total investments $ i25,000 109.811 100,250 Note 5 Outstanding indebtedness t A summary of bonded indebtedness outstanding as of June 30, 1980 is as follows: Bonds j t Bonds Matured Bonds i Date of Years of Rate of Amount of Outstanding During Outstanding Issue Bonds Maturity Interest Orig. Issue June 30,1919 Year June 30,1980 General Obligation Bonded Debt Group 1955 Water Bond 1955 1956-1962 5.50., S 230,000 -0- -0- -0- ]y63-1976 3.00 490,000 -0- -0- -0- 1977-1980 2.00 140,000 70.000 35,000 35,000 i ITotal 1955 water Bond 860,000 70,000 35,000 35,000 1970 Park Bond 1970 1971-1972 5.00 725,000 -0- -0- -0- 1973-1974 5.4 255,000 -0- -0- -0- 1975-19:7 5.50 440.000 -0- -0- -0- 1978-1983 5.75 1,150,000 810,000 185,000 625,000 1984-1995 6.00 3,930,000 3,930,000 -0- 3,93u,000 Total 1970 Park Bond 6,000,400 4,740,000 185,000 4,555,000 Total general obilgatlon bonded debt S 6,860,000 4,810,OCO 220,000 4,590,000 513 i t CITY OF RUIwBNGTOIV MACH i NOTES TO FINANCIAL STATEIIEMTS, Continued Note 5 Outstanding Indebtedness, Continued Bonds • ` Matursd- Bonds Purchased Bonds Date of Years of Rate of Amount of Outstanding Durirag Outstanding Issue Bonds Maturity Interest Trig. Issue June 30 _ 1979 Year June 30. 1980 i Revenue Bonds Water Utility Fund - 1963 Water Revenue Bond 1963 MI-1974 4.75% $ 700,000 -0- -0- - 0- 1975-Mb 3.25 460,0e0 -0- -0- -0- 1979-1s31 3.30 400,000 400,000 130,000 270,000 1982-1983 3.40 300,000 295,000 -0- 295,000 1984-1933 3.50 1,890,000 1 ,465,000 40,0DO 1 ,425,GOO Total Revenue 2,160,000 170,000 11990,000 i Bonds (a) (b) $ 3.750.000 .� Less current portion _ 130, 00 i Long term portion 1 ,BWOOO (a) The water revenue bonds do not represent a general liability of the City of Huntit.gton Beach. (b) At June 30, 1980, there were. $1,950,000 authorized but unusad 1963 water revenue bonds. Note 6 Meadowlark Golt Course Note Payable In 1975, the City entered into an agreement to purchase the Meadowlark Calf C.-urse from an independent party for a total purchase price of $3,200,06v. Terms of the zgreement called for an initial down payment ` of $928,000, with the remaining $2,272,000 In the form of long-terra 7% note. - At June 30, 1980 the balance of the note was$ 1 ,901,91Q• A schedule of yearly principal and interest pay- ments is as follows: Year Amount 1 . 1981-2001 $ 150,000 2002-200& 200,000 2009 115,703 59 +IITY OF HUN711 GTON BEAM NOTES TO FINANCIAL STATEMENTS, Continued � Note 6 Meadowlark Golf Course Note Payable, Continued In connection with the above purchase, the City has leased the golf course operation to an outside party for 3$ years, at a minlinum lease income of $150,030 annually through 2C07 and a percentage of income based upon gross revenues for the years 2008 and 2009. J ks 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 necessary to ensure that Meadowlark Golf Course will be maintained as open space. The n^?e sayable is collateralized by future revenues and does not represent a general obligation of the City. Note 7 Litigation At June 30, 1980, the City was defendant in several legal actions arising in the normal course of busi- ness. In several suits, the City was Insured for public liability and property damage through various insurance policies aggregating sap to $10,000,000 coverage for each occurrence. In the remainder of the suit_ , the City is self-insured. !n the opinion of the City kttorney. the actual impact to the City upon resolution of the outstanding claims '.s insigniflaint and the self insurance funds are adequate. Note 8 Accounting for Self Insurances The Cityaccounts for the 'public viability, employee health, and workman s compensation self insurar,�- funds as internal service funds. During 1980, the City established the employee health fund and established separate public liability and workman's compensation fundn. These two funds were accounted for as a single fund in the prior year. Note 9 ?Manpower Grant fund The manpower grant fund has an accumulated deficit of $156.810 at June 30, 1980. Deficit is primarily i •' attributed to expenditures incurred which may or may not be fully reimbursed under the grant. any amounts not fully reimbursed from the various grant funds must be reimbursed from the City's general fund. f i ' i ' � i 60 1- CITY OF HUNIMMON BEACH SCHEDULE i STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES July 1 , 1969 through June 30, 1990 Fines Use of From Charges for Fiscal Other Licenses b & For- Money 6 Other Current Other Year Taxes Permits features Property Agencies Services Revenue i 1970 S 2,256,982 809,773 79,169 541 ,283 1,101 ,752 774,850 159,339 ! 1971 2.569,358 772,347 30,197 510,099 1 ,332,432 348,834 51 ,129 1972 3,115,977 1 ,269,922 109,851 596.857 1 ,373,140 489,013 59,200 1973 3,800,728 1 ,997,105 126,651 651,746 1 ,589,742 701 ,760 112,172 1974 4,386,433 1 ,834,580 '52,769 682,395 1 .830,265 615.379 32.325 1975 5.723.995 2,236,292 125,698 767,233 1 ,774,192 639,064 41 ,427 1976 5,722,103 2,!i88,532 135,216 907.470 2,040,207 825,912 49,277 1977 6,785,656 2,1117,209 214,808 1,050,938 2,567,992 942,760 48,714 1978 7,953,048 2.653.129 2161362 1,415,212 3,076,250 938,182 99,600 1979 12,825,591 2,485,540 224.026 1 ,814,115 5,502,464 953,790 84,458 1980 $ 14,557,3� _2,597,954 398,877 1 ,820,700 3,874,763 11158 294 90,149 i 1 I See accompanying accountants' report. 61 I CffY OF HUNTINGTaN BEAal. STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR 6ENEPAI. FUND SCHEDULE it July 1, 1969 through June 30, 1980 Fiscal Administrative Services Community Services Public Safety Services Year Expenditures Encumbrances Expend tures Encumbrances Expenditures Encumbrances 1970 $ 2,346,300 156,241 3,806,162 206,532 4,728,247 198,844 1 1971 2,328,085 630 4,016,357 22a,289 5,410.562 41 ,583 19772 1 ,676,714 12,781 4,736,550 105,091 6,966,277 84,t17 1973 1,330,792 16,811 5.978,271 1 ,244,452 8,489,612 153,010 1974 1,494,073 6,601. 6,601,075 36,110 9,541,847 2+ ,579 1975 2,802,270 14,501 6,977,233 190,358 10,358,325 117,564 1976 3,194,089g Z01 ,011 6,6 3,560 250,0733 12,23 ,405 203,1783 ' 1977 2:664,4,'8 153,201 7,7 7►535 435:891 14,07 ,326 317,631 ! 1978 3,635,719 161 ,464 8,673.55705 4477,g2391 14,953,652 22:,i65 1980 $ 6,723,175 2049,857 11:387;668 508;8 5 16,789.782 171,524 i I � I � I i I � II 62 i QTY OF HUNnNGTON BEACII STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND, CONTINUED SCHEDULE il , Continued July 1 , 1969 through June 30, 1980 i Support Services Total General Fund Expenditures Encumbrances Expenditures Encumbrances 444,095 3,879 11,324,803 565,496 544,078 4,456 12,299,082 274.957 724,723 8,283 14,104.264 210,272 720.979 13,158 16,519,654 1 ,428,031 : 906,900 5,966 :8.543,895 70,356 813.411 5,367 2i.451,739 327.790 1,247.564 7,616 23.328,618 662,483 24g33, 48 47,288 26.979,687 %. 4,018 1 :89IN54 22.22g88g0 239,077,33 {0, 854,14h 2,371 :056 15'6i2 3 ;901;6 4 1 'g12,A8� j $ 2,001 ,019 32, I f - S - See accomdanying accountants' report. 63 t C1T;GF Hi1"NGTQN BEACH -- . I SWEDULE III STATEMENT OF ASSESSED VALUE, DEBT LIMIT AND RATIO OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND PER CAPITA j July 1 . 1969 through .Tune 30, 1980 % Bonded Debt to Fiscal Estimated Total Legal Debt Total General Legal Assessed 8onded Debt Year Population _Assessed Value Limit 0 5%) Bonded Debt Debt Marlin Value Per Capita , i 1970 115,960 $ 293,272,790 43,990.919 6,385,000 37.605,919 2.18% 55.06 1971 122,976 339,783.919 50,967,588 1 ,240,000 44,727,588 1.34 50.74 1972 129,992 370,230,7i9 55.534,617 6.090,000 49,44h,617 1.64 46.85 1973 143.725 410.283,199 61 ,542,480 5,930,000 55,612,480 i.45 41.37 1974 143,636 442,271.658 66,3+40,749 5,765,000 60,575,749 1.30 40.14 ' 1975 146,400 529,973,310 79.495,997 51i9o,o00 73,905,997 1.05 38.18 1976 1511500 580,623,450 87,093,518 5,410,000 81 ,683,5'.8 .93 35.11 1977 157,800 710,079,235 106 511 885 5,270,000 101,291,885 .74 33.08 i 'r978 161,200 854,321,745 128:148:262_ • -5,020,000 123,128,262 .59 31.14 1979 167,500 831,783,620 124,767.543 4,810,000 ? 19,957,543 _ •58 2a,72 1980 172,200 $ 994,398.090 149.153,713 h,590,000 14 ,569,713 46 26,6G wee accompanying accountants' report. t I i 64 .� i e t - CITY OF RUNITKGTQY KAM STAM'IFNT OF TAX DELINQUENCIES AND IMPOUNDS SCHEDULE IV ! July 1 , 1969 through .fungi 30, 1980 Secured Taxes unsecured Taxes i Fiscal Tax Total Delinquency Total Delinquency Year Rate Total Levy Collections Amount Percent Total Levy _ Collections Amount _ Percent _ Impou-cs 1970 $ 1.45 4.179,522 4,015,842 50,787 1.22% 252,136 250,534 1 ,602 .63% 112,8;3 1971 1 .45 4,433,058 4,31S,156 62,315 1.41 291 ,311 268,965 2.346 .80 54,587 1972 1 .62 5,565,713 5,395.846 59,651 1 .07 432,025 401 .297 4,628 1 .07 :36,322 1973 1.62 6,249,372 6,094.,Il 51 ,276 .82 397,216 391,186 6,030 I.S. 130,985 1974 1.62 6,703,620 6,4?9,009 66,654 .99 46i ,181 456,296 4,885 1.05 137.957 1975 1 .62 8,099,022 7,844.596 74.987 .93 486,545 484,124 11 ,169 2.30 179.439 1970 1.6t 8.852,0G; 8,587,784 82,622 .93 545.344 516,539 28,798 4.36 186,643 i 1977 1.62 9,98?.083 9,844,450 116s794 1.17 549,994 538,370 6.791 1.23 328,4 i 1978 1 .55 12,563,l44 12,336,e34 186,310 1 .49 742,053 711 ,519 30,534 4.11 204,893 0 972 8i 8; o2a o :72 _ ; 3 8 i lgz 198 S i ;899 15 24 ; i9�b 5 2.6 $8 2 8_ 1 Sce accompanying accountants' report. I 65 i ------ CITY OF HUNTINGTON BEACH STATEMENT OFF FUTURE GENERAL OBLIGATION BODED DEBT REQU1REHENTS BY YEAR SCHEDULE V BASED ON BONDED DEBT JUNE 30, 1980 I 'iscal Year Principal interest Total 1981 230,000 272,088 502,188 1982 210,000 260,525 470,525 1983 220,000 248,45o 468,450 ' 1384 235,00D* 235,800 470,800 1985 245,000 221,700 466.700 1986 260,000 207,000 467,000 1987 280,000 1y1 ,400 471:40-1 1988 295,000 174,600 469,5w:o 1989 V. 1000 156,900 466,400 i 1990 330,000 138,300 468,300 1991 350,000 118,500 468,500 1992 370,000 97,500 467,506 1993 395.000 75.300 470,300 1994 415,000 51 ,600 466,600 1995 445,000 26,700 471,700 III Total 5 4.590..000 2.476,363 7.066.363 { I The 1955 Water General Obligation Bonds will be totally paid in August, 1980. See accompanying accomtants' report. 1_ CM OF NIUIMNGTON BLACH STATENENT OF FUTURE WATEk REVENUE BOND 1EQ11IREMENTS BY YEAR SCkE ULE V1 BASED ON OUTSTANDING DrAT JUNE 10, 1980 t Fiscal Year Principal Interest Total 1981 S 130,000 :,6,g60 196,960 1982 140,000 62,435 202,435 1983 145,000 57.590 202,590 1984 150,000 52,500 202,500 1985 160,000 47.075 207:075 1986 160,000 41,475 201 ,475 1987 ;70,000 35,700 205,700 1988 180,000 29,5?r 209.575 1989 180,000 23,275 203,275 1 1990 190,000 16,Sa0 206,800 1991 200,000 9,975 209,975 1992 185,000 3,238 13,8,238 f Total S 1,99Q,OD0 446,599 ?.436.598 t I i See accompanying accountants' report. ti 67 C rff OF HElIMNGTOPI BEACH _ HUNTINGT" BEACH PUBLIC FACILITIES CORPORATION (a) SCHEDULE V11 STAT€KENT OF MWED DEBT YEAR ENDED JUNE 10. 1980 Date Years Bonds Bonds Bonds of of Race of Original Outstanding Natured Outstanding Description Bonds Maturity Interest _ `--suit July 1 . 1979 DurinS Year ,tune 30, 19co Civic Center Jan., 1972 !975-1982 7.00% $ 2,010,000 870,000 270,000 600.000 Leasehold Mort- 104-1996 5.0 7,040,000 7,000 005,000 20,000 6,985,0 0 000 gage Bonds, �1 1 ,675.000 80,000 1 ,595,000 First Issue 19.7-1998 5.00 1 ,720.000 Tcta; 11,100,000 91880,000 370,000 9,510,000 Central Library Feb. , 1572 1975-1983 7.00% 1 ,220,000 735,000 135,000 620,000 Leasehold Mort- 1984 5.90 180,000 180,000 -0- 180,000 gage Bonds, 1985 5.40 195,000 190,000 -0- 190,000 Second Issue 1986-1988 5.50 640,000 640,000 -0- 640,000 1989-1991 5.6o 770,000 770,000 -0- 770,000 1992 5.70 290.000 290,000 -0- 290,000 1993-1995 5.75 965,000 965,000 -0- 965,000 1996-1997 5.0 _ 745,000 745,oe0 -0- 745,000 Total 5,000,000 4,535.000 135,a0 4,400,o00 Total bonded debt $16,100,000 14.415,000 505,000 13,310,003 (a) The above schedule has been included for informational purposes only. The Nuntingto.. Beach Public .. Facilities Corporation Is an independent entity. Accnrdingly, the obligations of the °ublic Facilities Corporation do not constitute an obligation of the City. See accompanying accountants' report. 68 �- CITY OF Hl11VT1NGT N BEACH HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION SCH'tDUtE VIIl STATERENT OF FUTURE DEBT RMIRE►MENT3 BY YEAR BASED ON BONDED DEBT (a) JUME 30, 1Ig80 Fiscal Civic Center Issue library Issue Total Year Principal Interest Total Principal Interest Total Principal interest Total 1981 $ 290.000 524,735 814,735 140.000 246,967 386,967 430,000 771 ,702 1112tr1 ,702 814 435 1982 310,000 504,435 150,000 236,8i7 386,817 460,000 741 ,252 i ,201 ,252 1983 330,000 482,735 812.735 160,000 225,967 385.967 490,000 708,702 1.138,702 1984 360,000 463.925 823,925 170,000 214,417 384,417 530,000 678,342 1 ,2OE,342 1985 380,000 444,125 824,125 180,000 203,157 383.157 566,C O 64-7,262 1 ,207,282 1986 400,000 423,225 823,225 190,000 192,717 382.717 550,00C 615,942 1 ,205.942 087 430,000 401 ,225 831 ,225 200,000 182,087 362,087 630,000 583,312 1,213.312 1988 450,000 377►575 827.575 210,000 170,812 380,812 660,000 548,387 1 ,208,387 1989 465,000 352,825 817,825 230,000 158,712 388,712 695,000 511 ,5'7 1 ,206,537 1990 530,000 327,250 857,250 240,000 145,667 385,667 70,000 472►917 1,242,917 1991 555,000 298,100 853,100 260.00C. 131,667 391,667 5,000 429,767 1 ,244,767 1992 6o0,000 267,575 367.575 270,000 116.827. 386,827 870.000 33 ,4o2 1 ,254.402 1993 64o,ono 234,575 874.575 290,OOC 101 ,002 3g1 ,002 930.000 ?35.577 1 .265,577 1994 675,000 199,375 474.375 305,000 83,%8 388,968 98D,000 283,343 i ,263.343 1995 725,000 162,250 887.250 320,OC: 66,000 386,000 1 ,045.000 228,250 1 .273,25t} 1996 775,000 122:375 897,375 34o,Ooo 47,025 387,025 1 ,115,000 169►400 1 ,284,400 1997 30,000 79,750 909,75C 360,000 28,250 388,250 i11901000 la,000 1 ,298.000 , . ,385000 962S 394 ,0 875 197, 1998 765.000 38.250 03.250 625 1.150 000 47, 1,Y T5 Total $ 9,510•000 5.704,305 15,214,305 4,400.000 2►56i ,684 6.961,684 )�,310,000 8,265,989 22,175.989 Principal Due: January Septenber Interest Due: July and January September and March i (a) The above schedule has been included herein for Informational purposes only. )Wb Huntington Beach Public ( Facilities Corporatiop is an independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation or the City. See accompanying accountants` report. y 69 i E2TY OF Elri}iri?=NG'E'aN SF.Ae71' _ "PARKING AUTHORITY OF THE CITY SCHEDULE IX OF HUNTINGTON BEACH STATEMENT OF BONDED DEBT �a) JUNE 30, 1}PO Sate Years Bonds Bonds Bonds of of Rate of Original Outstanding Matured Outstending Description Bonds Flaiurity Interest Issue _ Ju�_1 , 1979` During Year June 30, 1980 1968 Parking Sept. , 1968 1970-1972 6.00% $ 150,000 -0- -0- Revenue Bonds 1973-1979 4.75 470,000 80.000 80,000 -0- 1980-1985 5.00 570,000 570,000 -0- 5;0,000 1986-1993 5.25 1 ,110,noo J .1101000 -0- 1 ,110,000 Total S 2,30C,000 1 ,760,000 Wow 1 ,680,os;o PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACil STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT JUNE 30, 1980 Fiscal Year Principal Interest Total 1981 85,000 84,63o 16g,650 1982 85,000 80,400 16s,Oo 1583 901.000 76,025 166,025 �J84 95,000 71.,400 166,4o0 1985 105,000 66,400 171,400 :i 1986 110,000 61 ,025 171,02: 1987 115low 55.256 110,256 1988 120,00c 49,088 169,088 1989 125,000 42,656 167,656 1990 135,000 35,831 170,831 1991 140.000 28,613 168.613 1992 i50,000 21 ,000 171,000 1993 160"000 12,863 172,863 Sea accompanying 1994 165,000 4,331 165,331 i ,6$0 000 6$3 53t# 2. 369, accountants' report. Total 70 ,,.� �# 8 (a) The abase schedules have been included herein for Informational purposes only. The Parking authority Is an Indepen- dent entity. Accordingly, its obligations are not -bligations of the City. 1 i t IIIINTINGTON BEACH PUBIJC FACII.MES CORPORATION r FINANCIAL STATEMENTS TUNE 30,1980 t (With Accountanti Report Thmon) i { i i 4 t PEAT. MARI-VICK HITCHED. &- CO. CERTII*IED PUSUC ACCOUI`TAN-rS 660 NEM►PORT CENTER DRIVE \I:tYolrr REACU.CALIMMNIA oC+aeo l The Honorable Board of Directors Huntington Beach Public Facilities Corporation t Huntington Beach, California We have examined the combined balance shset of the Huntington Beach Public Facilities Corporation as of June 30, 1980 and the related combined statement of earnings and retained earnings and changes in financial position for ;he year then ended. Our examination was made 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 aforementioned combined financial statements present fairly the financial position of the Huntington Beach Public Facilities Corporation at .tune 30, 1980 and thy: results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. i i 1 Septerber 15, 1980 1 . 71 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COKB1NED BALAACE SHEET _f JUNE 30, 1980 J • Civic Total Center Project Library Pra ect Assets Restricted assets: Cash held by trustee $ 32 32 Time certificates of deposit 1 ,204,392 806,088 358.304 Temporary investments in U.S. government securities, at cost (market: $1,555.354) 1 ,604,611 1 ,133.931 -70,68t* Accrued interest receivable 56,280 31 ,026 25,254 Interproject balances - 5,815 (5.815) _ 1 Total restricted assets 2,865,315 1 ,976,892 888,423 Long term leases receivable less unearned intone of S10,105,794 (Note 3) 12,464,406 8,510L730 3,953,676 � i Total assets $ 15.329,721 10,487,622 4.842,099 Liabilities and Retained Earnings Current liabilities payable from restricted assets: Accrued interest $ 328,729 245,656 82,133 Current installment of bonds payable (Note 4) 430,000 290,0t0 140.000 Total current liabilities payable from restricted 758.789 5-6,656 222,133 assets Deferred rental income 76.529 76,529 Bonds payable, net of current installment (Note 4) 13,480,000 5,220,000 4,260,000 Total liabilities 14,315.318 9.833,185 4,482,133 Retained earnings 1,014,403 654.437 _ 359,966 Total liabilities and retained earnings $ 15.37.9,721 10,487,622 4,642,099 See accompanying notes to financial statements 72 R 1 : HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1980 I Civic Library ' Opero,'ng revenue: Total Center Project ProJect Lease income: Lease payments received $ 1 ,253,900 854,900 399,000 Less amortization of leases receivable (228,389) (204,282) (94,107) 955,511 650,618 304.893 ` Operating expenses: Library sign expense (4,293) - (41293) Net operating income 951 ,218 650,618 300,600 Non-operating revenue: l Gain on bond redemption 19,329 19,329 Interest earned 270.354 191 ,786 78►568 Administrative expense reimbursement (net) 6,035 3.76? 2,268 ._ Total operating and non-operating income 1 ,246,936 865,500 381 ,436 Non-operating expenses: Interest expense (794.877) (540,804) (254,073) ! Net earnings 452.059 324,696 127.363 Retained earnings at :Qty 1 , 1979 562,344 329,741 232,603 Retained earning at .tune 30, 1980 $ 1 ,014,403 654,437 359.966 See accompanying notes to financial statements. t t 1 73 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION YEAa ENDED JUNE 30, 1980 Civic Library+ Total Center Project Pro`ect Source of funds: Funds provided from operations: Diet earnings $ 452,059 324,696 127.363 Amortization of leases receivable 298,385 204,284. 94t107 S 7501448 528,978 c21 ,470 Use of funds: Reclassification and redemption of bonds payable $ 530,000 390.000 i40,000 Decrease in deferred rental income 4,028 4,028 - Increase in working capital 216,420 134,:50 81 ,470 S 750,448 528,978 221 ,470 Changes in components of working capital : Increase (decrease) in restricted assets: Cash held by trustee $ (50) 32 (d3) Time certificates of deposit 241 ,030 161 ,320 72.710 Temporary investments in government securities (23,505) (22,947) (558) Accrued interest receivable 14.494 9,614 4,880 Interproject balances - - 231,969 148,Gi5 82,95 0 Decrease On -.rease) in current liabilities: Accrued interest payable 9,451 6,931 2,520 Currint installment of bonds payabie (25,00D) (20,000) 000 (15,549) ()3,069) UAW Increase in working capital $ 216,420 134.950 81,470 } I See accompanying notes to financial statements. 74 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1960 l 1. Summary of Significant Accounting Policies The following is a summary of significant accounting policies used by the Huntington Beach Public Facilities Corporation (Corporation) . Basis of Accounting The accompanying combined financial statements of the Corporation have been prepared using the accrual basis of accounting. t a Temporary Investments investments are stated at cost. Such investments consist of Federal Government backed securities and are not adjusted for amortization of purchase premium or discount, which has been determined to be Immaterial t at June 30, 1980. Funds Under the provisions of the bond' indenture agreements, the Corporation is required to maintain separate accountability for various types of funds received. A description of these funds, which are combined for financial statement presentation, is as follows: } Account Source Use Reserve Fund Bond proceeds and rental revenue, fund Bond principal and interest Construction Fund Bond proceeds Cost of project Interest During Construction Bond proceeds First twenty-six months' interest Fund on bonds I i 75 HUNTINGTON BEACH PUBLIC FACILITIES CORPORAMN NOTES TO FINANCIAL. STATEMENTS, CONTINUED 1 . Summary of Si r.lficant Accounting Policies, Continued Account Source Use Fund City of Huntln ton Beach rent payments Required transfers to various funds - and/or Revenue u d y g p y q and/or other specified purposes Debt Service "tend Transfers from revenue Fund Bond principal and interest Administrative Expenses Fund Transfers from revenue fund Corporation operating expanses Bond Redemption 7und Transfers from revenue fund Call and redemption of bonds, changes, alterations or additions i to the pr-iject, or reimbursement ] of any base rent or additional rent previou_ly paid by the City of Huntington Beach Upon completing construction, separate rental revenue funds were established :o account fc%r all lease and other revenue from the City of Huntington Beach for the Civic Center and Library. The separate construction funds for the Civic Center and Library projects continue to account for improvements and modifica`ions to the project structures as approved by the Directors of the Corporation. Money in the respective rental re%en ue funds is disbursed as follows: First, to the debt service funds• In amounts sufficient to pay one succeeding principal and two succeeding interest installments; Second, to the respective reserve funds in amounts necessary to restore a balance equal to one year's lease revenue; Third, to the administrative expense funds in amounts equal to the budgeted administrative expenses of the Corporation; Fourth, to the bond redemption funds. Money in the bond redemption fund is used to correct a3ficiencies In the debt service funds, reserve funds or administrative expens^ funds. honey remaining after meeting the minimwn rer,airements of the bond agreements may be used to purchase o, redeem outstanding bonds in order to make Improvements or to reimburse the City of Hunting- ton Beach for rent paid to the Corporation. 2. Organization The Huntington Beach Public Facilities Corporation Was Incorporated under the laws of the State of California as a non-profit corporation on November 25, 1970. The Corporation was formed for the primary purpose of financing and constructing a civic center complex and central library for th; City of Huntington Beach. The constructed civic facilities have been leased to the City of Huntington aeach under long term lease agreemerts. (Nate 3). 76 44 t- HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS. CONTINUED i 3. Leases • The Corporation has entered into two tease and sublease agreements with the City of Huntington Beach. The terms of the leases are as follows: a) Civic C-nter lease - This involves a lease and sublease agreement with the City of Huntington Beach for the Huntington Beach Civic Center. The site occupied by the Civic Center is owned by the City and was leased to the Corporation for an advance rental of $350,000. The term of the lease is from January 15, 1972 to one week after the termination of the sublease described in the next paragraph. The Corporation has sumsleased the Civic Center site and civic buildings constructed thereon to the City for an annual rental of $854,900. This sublease commence) Juiy 1 , 1974 and extends for a tern of the earlier of: (a) thirty years or (b) until the bonded indebtedness incurred by the Corporation to construct the Civic Center has been paid. b) Central Library lease - This involves a lease and sublease agreement with the City of Huntington Beach for the central Library. The site occupied by the Cent al Library is owned by the City and was leased to the Corporation for an advance rental of $300.000. The term of the lease Is from September 1, 1972 tc, one week after the termination of the sublease described in the next paragraph. i The Corporation has subleased the Central Library site and building constructed thereon to the City for an annual rental of $399,000. This sublease commenced February 15, 1975 and extends for a term of the earlier of: (a) thirty years or (b) until the bonded indebtedness incurred by the Corporation to construct the Central 1.113rary has been paid. Under both agreements, the City is r,%quired to pay all taxes, insurance, administrative and maintenance costs associated with the leased facilities. At the conclusion of the lease agreements, title to the leased facilities will be transferred to the Lity at no additional cost. Proper accounting treatment requires that such leases be treated as financing leases. !Under the financing method, the excess of aggregate rentals o%3r the cost of the leased property is considered compensation to the lessor for the use of -lunds invested. At June 30, 1980, leases receivable from the City of Hunt;ngton Beach for the Civic Center and Central Libras. facilities total $12,464,406. net of unearned income. The site advances are included in the long term leases receivable and are amortized over the term of the leases. I I 77 1 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS, CONTINUED 4. Outstanding indebtedness s A summary of the Corporation's bonded indebtedness as of June 30, 198D is as follows: Haturities Date Interest Original Outstanding Annual Period Bond issue issue rates issue June 30. 1980 re9uirements covered Civic Center: Leasehold Varying amounts Mortgage Bonds, January 5.00 - from $200,000 to First Issue (a) 1972 7.GO% $ 11 ,100,000 $ 9,510,000 S390,000 1975-1998 Central Library: Leasehold Varying amounts j Mortgage Bonds, FeLruary 5.00 - From $105,000 to Second Issue (b) 1972 7.00% 51000,000 4,400,000 $385,000 i975-1997 S 16,100,000 $ 13.910,000 a) The $11 ,100,000 principal amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972 and were issued as coupon bonds in $5,000 denominations. These serial bonds mature annually on January 15. Interest is payable semiannually on January 15 and July 15. Bonds maturing on or prior to January €5, 1982 are generally not subject to call and redemption prior to their rinal maturity date. Bonds maturing on or after January 15, 083 (a principal amount of S9,090,000) are subject to call and redemption at the option of the Corporat€on, in total or in part, on January 15, 1982 .r on any interest payment date thereafter. Call price of the bonds shall be an amount equal to the prin- cipal amount plus a premium equal to 1/4 of € percent of the principal amount redeemed, plus 1/4 of 1 percent for each year or fraction of a year from the redemption date to the maturity date of the bonds. In no event shall the premium exceed 4 1/2 percent. I b) The $5,000,000 principal amount of Leasehold Mortgage Bonds, Second Issue (Bonds) are dated September 1 , 1972 and were issued as coupon bonds in $5,000 denominations. These serial bonds mature annually on September 1 . Interest is payable semiannually on lurch 1 and September 1. Bonds maturing on or prior to September 1 , 1982 are generally not subject to call and redemption prior• to their fixed maturity date. Bonds maturing cn or after September 1 , €983 (a principal amount of $3,950,000) are subject to call and redemption at the optlon of the Corporation, i-� total or in part, on Septer*ar 1 , 1982 78 i_ �' OJT I NGTt1lI BEACH PUBLIC FACILITIES CORPIGMT 144i NOTES TO f 'ANCIAL STATEMENTS, CONTINUED i 1►. Outstanding Indebtedness_, Continued or on any interest payment date thereafter. Call price of the Bonds shall be an ammunt equal to the prin- cipal amount redeemed plus a premium equal to 1/4 of 1 percent of the principal amount redeemed, plus 1/4 of i percent for each year or fraction of a year from the redemption date to the maturity date of the Bonds, In no event shall the premium exceed 4 percent. 1 i i i t 79 t _ � f i ! PARMG AUTHOIRM Y OF THE � l CITY OF HUNI'iNiGTON1 BEACH i FINANCIAL STAB i JUNE 30, 198D (With Actnuotaote Report Thereon) 1 i f l.: i PEAT. K&MVICH.MITCHELL & CO. CERTIFIED PUBLIC ACCOU\'TAR'TS s i 060 24XWMUT CENTER Zr. E NEW PORT DEACII.CALIPOILMA 0.660 1 The Honorable Hembers of the Parking Authority City of Huntington beach Huntington Beach, California f We have examined the balance sheets of the Parking Authority of the City of Huntington Beach as of June 30. 1980 and 1979, and the related statements of earnings and retained earnings and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures es we considered Necessary in the cr.cumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the Parking Authority of the City of Huntington Beach at June 30, 1980 and 1979, and the results of its operations and the changes in its financial position for the years then ended, -In conformity •with generally accepted accounting f principles applied on a consistent basis. i r t , September 15, 1980 I • f . ! 80 PARKM AUTH0P%I Y OF THE CITY OF HUNTINGTON BEACH BALANCE SHEET JUNE 30, 1980 AND 1979 Assets: i980 1979 _ Current assets: Cash and term deposits S. 149.094 137,503 Receivables: Due from general fund 871 2.330 Accrued interest receivable 30,659 9,165 Total receivanles 31 ,530 11,495 Total current assets 180,624 148,998 Restricted assets: Investments, at cost which approximates market (Note 3) 690,555 b31 ,545 Cash with fiscal agent 1,156 6.537 Total restricted assets 691 ,711 638,085 Fixed assets, at cost: Land 371,065 371.065 Improvements 1 ,694,0$9 1 ,694,089 Less allowance for depreciation (750.7€5) (677,501) Total fixed assets, net 1 ,314,389 1 ,387.253 Total assets $ 2,186,724 2,174,336 i I Liabilities and Retained Earnings: Current liabilities: Accrtad interest payable $ 28,925 30,078 Current installment of bonds payable (Note 3) 85,000 80,000 &,tured interest payab'e from restricted assets 1 ,156 6,W Total current :iabilitles 115,081 116,615 Bonds paycjle, net of current Installment (Mote 3) 1 ,595,000 1 ,680„,000 Total liabilities 1,710,081 1,796,615 Retained earnings 476,643 377.721 Total liabilities and retained earnings $ 2,186.724 2.174,336 See zctompanying notes to financial statements. 61 PARKING AUTHORIT". OF THE CITY OF HllNT:NGTON BEACH STATEMENT OF EARNINGS AND RETAINED EARNINGS YEARS ENDED .TUNE 30, 1580 AND 1979 1980 1979 Operating revenue: Rentals (Note 2) $ 170,050 170,050 Operating expenses: i Depreclatlen 72,864 72.684 Net operating income 97,186 97,366 Mon-operating revenue: I Interest earned 89.257 53,611 Total operating and non-operating income p 9 P y 186,443 150,977 Non-operating expenses: Interest expense 87,521 92,356 Net earnings 98,922 Retained earnings, beginning of year 377,72) 319.100 Retained earnings, end of year $ 476,643 377,7:1 f 1 See accompanying notes to financial statements. t ( 8' PARKING AUTHORITY OF THE CITY OF IIUHTINGTON BEACH STATEMENTS OF CHANGES IN FINANCIAL POSITION `!EARS. ENDED JUNE 30, 1980 AND 1979 Sources of working capital : 1980 1979 Net earnings $ 98,922 58,621 Items which do not use wor►,ing capital : Depreciation of land improvements 72,864 - 72,684 Working capital provided by operations 17; ,786 131 ,305 Decrease in working capital - 14,673 $ 171,7E6 145,978 j 1 i Uses of working capital : Reclassification of current installment of bonds payable $ 85,000 80,0GO Increase in restricted assets 53,626 65,978 Increase in working capital 33,160 _, - $ 171 ,786 145,978 I i t � Changes in components of working capital: Increase (decrease) in current assets: Cash and term deposits $ 11 ,591 - Receivables 20,035 (3, 136) 31 ,626 {313`1 Decrease (increase) in current liabilities: ( - Accrued interest payable 1 ,153 Matured interest payable 5,381 (6,537) Current Installment of bonds payable MOW) (5,000) 1 ,534 (11 ,537) Increase (decrease) In working capital $ 33,160 (14,673) See accompanying notes to financial statements. i 83 PARKING AUTHORITY OF THE CITY E OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS ► JUNE 30, 1980 ll} Summary of Significant Accounting Policies Basis of Accounting h M The accompanying financial statements of the Parking Authority of the City of Huntington Beach (Parking �= Authority) hr,ie been prepared using the accrual basis of accounting. I` Fixed Assets and Depreciation 1' Fixed assets are recorded at cost. Land improvements are depreciated using the straight-line method ever I" the term of the lease (23 years) with the City of Huntington Beach (City) . l Investments �4 j investments are stated at cost and consist of Federal government backed securities ind bank tir^ certi- ficates of deposit (see note 3). � Lease The Parking Authority leasing operations consist principally of the leasing of its parking facilities to tile- City of Huntington Beach. The Parking Authority lease with the City of Huntington Beach is classified as all ooerating lease. (2) operations r I The Parking Authority is an independent public agency established in 1967 under provisiotis of the Parking Law of 1949. The primary purpose of the Parking Authority is to provide off-street parking facilities for the City of Huntington Beach. The Parking Authority leases its parking facilities to the City under a lease agreement which requires minimum annual rental payments of $170,O50 through July 1 , 1993. I E The Parking Authority obtained the funds to acquire and construct these facilities through the issuance of $2,300,000 of revenue bonds which are secured by the rental payments received from the City. The rental is payable annually on July 1. Rental income Is to be used for bond principal and interest requirements. Excess funds, if any, Including interest earned thereon, which are not required to meet scheduled principal and interest payments and which are not required by the bond indenture agreement to be established as a i reserve may be: (1) used to finance additions and Improvements to the parking facility , or (2) applied as a credit against annual rental payments from the City. 84 1 PARKING AUTHO;;ITY OF THE CITY OF HUNTINGTON BELCH e NOTES. TO FINANCIAL STATEMENTS, CONTINUED (2) aerations, Continued Under the terms of the leas, agreement dated September 30, 1968 between the Parking Authc.: 'ty and the City, j the lease is to terminate after all of the 1968 revenue lends are retired or provision for retirement has been made. All costs of maintenance and operation have bean assumed by the City. The City must also pay, 1 in the form of additional rent, all taxes, assessments, insurance, fees and other expenses of the Parking Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility. (3) Bonded Debt A summary of the Parking Authority bonded debt is as follows: Bonds Bonds Matured Matured Amount of Bonds During Bonds During Bonds Date Years of Rates of Original Outstanding Fiscal Outstanding Fiscal Outstanding Description of Issue _ Maturity Interest Issue 6/30178 1979 6130/79 1980 6/30/80 1968 Parkinq September, 1970-72 6.00% $ 150,000 Revenue Bonds 1968 1973-79 4.75 470,000 355,000 75,000 80,000 80,000 - 1980-85 5.00 570,000 570,000 - 570,000 - 5701000 1986-93 5.25 1 ,110,000 1 ,110,000 - 1 ,110,000 - 1 ,110,000 $21300,000 1 ,835,000 75,000 1 ,760,000 80,000 1 ,6801000 Interest is payable semiannually on March i and September 1 . Provisions of the bond agreement provide for the establishment of three special funds as follows: (a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking facility are placed In the bond service fund. Money in this fund Is used t., psy' bond principal and interest. Amounts received in excess of the amount required to meet principal and interest requirements may be transferred to the reserve fund or working capital fund. Under certain cir- cumstances'. such excess funds may be used to finance additions and =mprovements or reduce the annual I rental due from the City. II � 85 1.. PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, CONTINUED i (3) Bonded Debt, Continued (b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside to be used to pay principal and interest currently payable in the event there is ;nsufficient money in the bond service fund and may ba appiled to the final payments of principal and interest. t (c) Working Capital Fund - After provision has been Trade for payment of bond principal and interest and an appropriate reserve fund balance has been established, excess money, if any, remaining in the bond service fund may hc •transferred to the working capital fund to be used to pay the adminis- trative expenses of the Parking Authority, and maintain the working capital fund's cash at a balance of at least $1 ,5UO. At June 30, 1980, the Parking Authority maintained the following Investments pursuant to the terms of the bond agreement (see Note 1): I 1980 1979 Bond Service Fund $ 598.833 542,965 Reserve Fund 91,722 88,583 $ 690,555 631,548 Bonds maturing on and after September i , 1980 are subject to call and redemption at the option of the Parking Authority as a whole or in part, in inverse order of maturity and by bond number within a single maturity on September 1, 1979 and on any interest payment date thereafter. The bonds are redeemable at gar value plus accrued Interest and a premium equal to 1/4 of 1 percent for each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3 1/2 percent. f f f 86 I Cal CITY OF HUNTINGTON BEACH � � FISCAL YEAR e ENDED DUNE 30, 1981 F i*.,n a alo I"' Repor AK i DEPT. OF ADMINISTRATIVE SERVICES �- Frank S. Arguello,Chief HUNTINGTON MACH CITY OF HUNTINGTON BEAC" ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Letter of Transmittal Elected City Officals Departments of the City Exhibit Page i FINANCIAL SECTION �I Accountants' Report j Combined Financial Statements: Combined Balan_e Sheet - All Fund Types and Account Groups I 1 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds ii b Combined Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual - Governmental Fund Types I!1 o Combined Statement of Revenues, Expenses and Changes 1n Retained Earning: - All Proprietary Fund Types IV 10 Combined Statement of Changes in Financial Position - All Proprietary Fund Types V 12 Notes to Combined Financial Statements 14 Combining Financial Statements Statement Page Special Revenue Funds: Combining Balance Sheet I 25 Combining Statement of Revenues, Expenditures and Changes in Fund Balance II 27 Combining Statement of Revenues, Expenditures and Change In Fund Balance - Budget and Actual 111 29 t Schedule Page Statistical Section (continued) Statement of Future Water Revenue Bond Requirements by Year Based or: outstanding Debt V! 53 Huntington Beach Public Facilities Corporation Statement of Bonded Debt Vit 54 Huntington Beach Public Facilities Corporation Statement of Future Debt Requirements by Year Based on Bonded Debt Vill 55 Parking Authority of the City of Huntington Beach Statement of Bonded Debt IX 56 Parking Authority of the City of Huntington Beach Statement of Future Debt Requirements by Year Based on Bonded Debt X 55 City of Huntington Beach Miscellaneous Statistics X1 Huntington Beach Ptelie Facilities Corporation Exhibit PaQe Accountants' Report Financial Statements: Combined Balance Sheet I t Combined Statement of Earnings and Retained Earnings It 2 Combined Statement of Changes in Financial Position III 3 Motes to Combined Financial Statements 4 Parking Authority of the City of Huntington Beach Accountant's Report Financial Statements: Balance Sheet i I Statements of Earnings and Retained Earnings !I 2 Statements of ChangeF in Financial Position III 3 Hot_, to Financial btatements 4 Stato ent Page Coobining Financial Statements (continued) Debt Service Funds: Combining balance Sheet IV 35 Ceabining Stateoet.t of Revenues, Expenditures and Changes In fund Balances V 36 Combining Statement of Revenues, Expenditures and Changes in fund Balances - Budget and Actual Vi 37 Enterprise Funds: Combining 3alance Sheet Vii 38 Combbining Statement of Revenues, Expenses and Changes in Retajncd Earnings Vill 40 Combining Statement of Changes In financial Positlen IX 41 Internal Service Fundst Combining balance Sheet X k3 CaEtntng Statement of Revenues, Expenses and CSmnges In Retained Earnings Xt 44 Combining h-3tement of Changes in financial Position X11 45 Expendable Trust funds: Combining balance Sheet X111 46 Combining Statement of Revenues. Expenditures and Changes in Fund Balances XIV 47 Ststistical Section Schedule Page j Statement of General Fund Revenues - Other than Property Taxes - Last Ten Fiscal Mears 1 48 Statement of General Fund Expenditures - Last Ten Fiscal Mears It 49 , Statement of Assessed Value, Debt Limit and Ratio of General Obligation bonded Debt to Assessed Value and Per Capita - Last Ten Fiscal Years fit 50 Statement of Tan Delinquencies ar:d Impounds - Last Ten fiscal Years IV 51 Statement of future General Obligation Bonded Debt Resluiremients by Year Based ern )landed Debt V 52 {1 I i i t OFFICE OF THE CHIEF OF ADMINISTRATIVE SERVICES FRAW B. ARGUELLO, CHIEF Mr. Charles H. Thompson City Administrator City of Huntington Beach Dear Mr. Thompson: Submitted herewith is the Department of Administrative Services Annual Report coataining the City's financial statements far the fiscal year ended June 33, 1481. The comprehensive repert encompasses all funds, reflects the results of all financial transactions, and represents the culmination of accounting processes performed during the fiscal year. General Fund Revenues and transfers frnem Other Funds for general fund purposes totaled $42,390,145 In FY-1981, an Increase of $6,617,850, or 15.6% when compared to FY-1980. The revenue from various sources and the changes as compared with FY-1990 are as follows: Percent Change from FY-1980 Source Amount of Total Amount Percent General Property Taxes $11,250,790 26.5% $1926,121 17.1I Other Lout Taxes 16,9 ,338 40.1 2:437,008 14.3 Licenses and Permits i,9 ,303 7.0 386,349 12.9 Fines and Forfeitures (1) 1►526,072 3.6 1,127,195 73.9 Use of Money and Property 2,552,637 6.0 731,937 26.7 Revenue fray Other Agencies 4,495,318 10.6 620,565 13.8 Charges for Current Services 11382,055 3.3 22j,761 16.2 Other Revenue 3",125 .9 275,976 75.4 Transfers from Other Funds (1) 838,497 2.0 (1,111,062) (132.5} Total $42 0 1 100.01 Sb 6, 17.850 15.6% ` (1) Fines and Forfeitures includes traf?lc fines which were Included In Transfers from Otheo• Funds in FY-198D. I Gross expenditures and encumbrances for general fund purposes totaled 541,422,839 1" FY-1981 -- an increase of S66,116.f76 or 14.2% I over FY-1980. 1 i f f i i i 1 f i r t l T Tho -:;:::;gnated general fund haiance decreased from $1,972,908 In FY-1980 to $1,028,111 in FY-1981, a decrease of $544,797 or ' 47.9%. The City continues to fund accrued employee vacation and sick leave which increased from $1,225,205 In FY-1980 to $2,050,501 in FY-1981, an increase of $825,256 or 67.42. Assessed ►aiuotion In!reased by $90,377,031 to $1,074,364,751 in FY-:98l -- a 9.21 increase. In FY-1982 It Is anticipated the assessed -::uation will increase to $5,219,684,144, an Increase of $4,145,379,439 or 385.9%. A comparison of assessed valuation over the :dot three years with anticipated FY-1982 assessed valuation Is as follows: Assessed Change from Prior Year Fiscal Year valuation Aeaount Percent * 1982 $S,219,684,140 $4,145,379,439 365.9% t981 1,074,304,701 90,377,031 9.2 1980 983,927,670 152,144,050 18.3 1979 831,783,620 i22,539,125) (2.6) t The method used to determine Assessed Valuation has been changed for FY-1982. Previously, assessed valuation was 252 afi market value. The new method Is 100% of market value. Therefore, to compute the change from the prior year, the FY-1981 assessed valuation should be stated at $4,297,218,804 ($1,074,304,701 tt 4). The change then mould be $922,46S,336 or 21.51. Outstanding general obligation bonds as of June 30, 19111 totaled $4,360,000. This is comprised In total of :963 Park bonds. The 1955 Water Bonds were retired in August, 1980. There is, as of June 30. 1981, $1,766,00 outstanding an the 1963 Water Revenue Bond but this does not represent % genersl obligation of the City of Huntington Coach. The trz r=te r3ecessary to provide funds for voter approved indebtedness totaled $.iS-r4 per $100 of assessed valuation. This is In addition to the Clty's share of the overall $4.00 per $100 of assessed valuation permitte-S as a result of the passage and implemeurta:lon of Proposition 13. The method of determining assessed valuation has changed for the FY-1981. The tax rate necessary to provide funds for the voter approved debt will be $C.04615 per $100 of assessed valuation. This, In addition to the City's pcwtion of th- •overall tax rate of $145 per $100 of assessed value, will be the Clty's,total property tax revenue. Cos;:.%rativc data for the City's Water Utility operation for the post two years is as follows: 1961 1990 Total operating revenue $5,814,133 $5,4519S55 Net income 1,0989393 1,674,765 A supple:sental informaticn section has beer+ Included In this report which contain• comprehensive statistical data. Such data is presented so as to relate physical, economic, social, and political characteristics of our City which should give the readers of this rsport a more broad and complete understanding of the City ez-d its financial operations. This financial report has been changed to report in conformance with Statement i of the Rational Council on Goverr-rental Accounting printed by the Municipal Finance Officers' Association of the United States and Canada dated March, 1979. in accordance with Section 615 of the City Charter, the City Council shall employ at the beginning of each fiscal year, an independent certified public accountant who should examine all the City's accounts and the results report-d to the City Council. The opinion of Peat, Marwick, "itchell and Company, Certified Public Accauntsnts, Is Included in this repcirt. 1 wish to express my appreciation to the members of the Administrative Services Department without whose dedicated efforts rtiis report would r=t be Possible. in addition, 1 would express ivy appreciation to you and the City Council for the continuing support and interest in planning and conducting the fiscal affairs of this city In responsible and Progressive manner. Respectfully submitted, Frank 11. Arguello Chief of Admintstrative Services 1 t • CITY OF H+IiT t"GTOR KA:M ELECTED OFFICIALS CITY COUNCIL Ruth S. Bailey Councilpersai Ruth E. Finley llayor .lack Kelly CcumII per mn Robert P. Randic, Jr. Councitperson D•xald A. MacAllister Councilperson Ronald R. Pattinson Mayor Pro Tom John A. Thomas CouncIIperson OTKU Gail Hutton City Attorney I Warren G. Nall City Treasurer 1111c1e R. Wentworth City Clerk DEPARTMENTS OF THE CITY Charles W. Thompson City Administrator Frank 0. Arguello Chief of Adtlnistrative Services James Palin Davelop@ant Services Director Paul E. Director of Public works Vincent G. Poorhouse Community Services Director Rayeond C. Picard Fire Chief Earls V. Robltalile Police Chief This page Left Blank Intentionally i G:AM1ii�.�JY��Y���4.�LYL:rL7CJP.��rol���:i.._ raari�6k��•IM�.� � I I I i son I I —. wo i J apt -A Certified Public Kcoountrmu 4- R!dacAnhw Boulevard k F,1:a4 M1-rwkk1Mftt VH&CQ New"ll.sdsCaldomia 92M (714)tS1-M The Honorable ite hers of the City Coun-pil rsty of Hunti+gton Beach, California Ma have examined the c=bined financial statements of the City of Runtington Beach, Californla, as tistod in the accompanying ta:,le of contents. as of and for the year ended, June 30, IAI. Except a: sit forth in the following two paragraphs, our examinstiC61 was made in accordance with generally accepted auditing standards and, accordingly, included such tests of Owe accounting records and such other auditing procedures " we considers$ nec:isery to the circumstancsss. The City's records of thu fixed assets of the hater Utility Fund ware not adequsto to allow us to satisfy ourselves as to the balance of net fixed assets, stetbd at $24,096.761, and the related dsprectatlen expanse of $766,803. The scope of our work was not sufficient to enable us to express, and we do not express, an optnicn on Ott financial statements of the Hater Utility Fur.d. The City's records of the General Fixed Assets Actouat Group were not adequtte to char us to satisfy oi:rsnlves as to the balance of the General Fixed Assets Account Croup, stated at $32,477,06F. The scope of our work was not sufficient to enable us tc express, and ws da not erprest, an opinion en the financial statements of the Ceaeral Fixed Assets Account Group. I in cur opinion, the cambine3 financial stater-ants referred to above, other then those of the Water Utility Fund and Central Fixed Assets Account Group as noted In the two preceding paragraphs, present fairty the financial posl:ion of the City of Huntington be th, California, at June 30, 1981 and the results of Its operations and the changes in flotanctat position of Its proprietary funds for the 1 yew than ended, in ccnformity with generally accepted accounitng princtpt92 applied an a basis consistent with that of the preceding year after giving retroactive effect to the chaige, with which we concur, in the method of re•:ording encumibrazces as described in Kate 2 to the ccs�ined financial statements. Our examination was made for the purpose of forming or •pinion on the cemb;ned financial statements taken as a whole. The combining financial statem:entt and schedules listed in the table of contents are presented for supplementary analysis purposes and are not a required part of the ccmbinad financial statements of the City of ?fwitingCon Beach, California. The Information has been subjected to the auditing procedures applied In the examination cf the co*inad financial statements and. In our opinion, except as stated in the second and third preceding paragraphs, is stated `airl;r In all material respects In relation to the --ombinPd financiat statements taken as a whole. i September 25, 10,31, wxcept as to the second paragraph of note 10, which is at of lioyamber 33, 14a1. I Combined Financial Statements :ITV Cr HUNTINGTON BEACH EXHIBIT i Combined Balance Sheet - All Fund Types and Account Groups .tune 20, 1981 Governmental Fund Types Prcprietary Fund types Fiduciary Arco--_ Groups Fund Type General General Special Debt Enter ri.. Internal Expendable Fixed Long-Term Totals General Revenue Service Note 12' Service Trust Assets Debt !tie+ao Onl Assets and Other Debts Cash and term deposits $5,745,407 11.922,252 44,802 4,902,145 4,900,348 1,462,475 -- -- 28,977,429 Accounts receivable, net 109,435 -- 337,357 -- -- -- 446,792 Property taxes receivable, net of allowance for uncollectible taxes 573,249 -- 27,191 -- -- -- -- 600,440 Notes receivable, net -- -- -- -- -- 872,267 -- -- 872,267 Interest receivable 94i557 190,076 1,175 81,278 80,405 -- -- -- 447,491 Other receivables -- -- 15,050 -- -- -- 15,050 Investments at cost which approximates market (Note 6) 109,811 -- -- -- -• -- 109,811 Due `rcm redevelopment agency 784,150 -- -- -- -- -- -- 184,150 Due from other funds -- -- -- -- 13,722 -- -- -- 13,722 Due from other governmental units, net 890,094 1,571,026 -- -- -- -- -- -- 2,461,120 Prepaid expenses 85,568 -- -- -- -- -- -- 85,566 Deposits -- -- -- 32,269 -- -- -- 32,269 Ascent available in debt service -- -- -- -- -- -- -- 73,166 73,168 Amount to be provided fcr debt retirement -- -- -- -- -- -- -- 4,286,832 4,286,832 Amount to be provided for under financing leases (Note 4) -- -- -- -- -- -- -- 12,556,577 ,55 ,577 12,556.571 Leased facilities under financing leases (Note 4) -- -- -- - 13,913.3C4 -- 1 04 -- -- - 3,913,3 Property plant and equipment, net of allowance for depreciation -- -- -- 27,196,041 -- -- 18,563,761 -- 45,759,802 Restricted assets - cash and investments -- -- -- 405,504 -- -- -- -- 405,504 Total assets and other debits $ T 2 271 i ,687, 54 73L168 44 2.3a42 111,241s?627 6 See accompanying notes to combined financial statements I i I CIT1 OF HUNTINGTOtI BEACH EXHIBIT 1 Combined Balance Sheet - All Fund Types and Account Groups Jane 30, 19al Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups Fun.1 Type General General Special Debt Entar rise Internal Expendabla Fixed Long-Term Totals General Revenue Service Note 12 Service Trust Assets Debt Mena On1 Liabilities Cash overdraft S -- 273,241 -- -- -- -- -- -- 273,241 Accounts payable 1,102,624 475,790 -- 286,646 18,331 -- -- -- 1.883,391 Accrued payroll 882,512 19,538 -- 122,196 989 -- -- -- 1,025,245 insureaca claim: payabis -- -- -- 2,006,876 -- -- - 2,006,876 Deposits 420,738 4,4-.M -- 329,650 -- MOO -- -- 924,996 Due to other funds 13,185 -- -- 537 -- -- -- -- 13,722 Accrued interest payable -- -- -- 46,325 411.325 Current Installment of notes payable (Notes 8, 9) -- -- -- 56,725 -- 21,691, -- -- 78,417 Deferred rental t other Income (Note 4) 578,787 -- -- -- 32,843 -- -- 611,630 Current liabilities (payable free restricted 433ets) -- -- -- -' -- -- -- -- -- Current Installment of bonds, payable (Note 7) -- -- -- 140,000 -- -- -- -- 1G0,000 Accrued interest payable -- -- -- 14,000 -- -- -- -- 14,000 'E Obligation under financing lease: -- -- -- -- -- -- -- 0.556,577 12,556,S77 Bonds, met of Curren: Installment (Note 7) -- -- -- 1,626,000 -- -- -- 4,360,000 5,986,000 Notes payable, net of current Installment (Motes 8, 9) -- -- -- 213551136 -- -- -- -- 2,355,136 Other 8,48$ -- -- -- -- -- _, -- _ 8,486 Total liabilities $ 00}, 6,344 773,008 - 4,977,215 2,026,196 16,916,577 27,924,044 See aceimpanying notes to combined financial statements 2 1 t1, 7 • CITY OF M4T1NGTON :LEACH EXHIBIT 1 Combined Balance Sneet - All Fund Types and Account Groups June 30, 1981 Goverrmentcl Fund Types Proprietary Fund Types Fiduciary Account Groups Fund Type General General Special Debt Enterprise internal Expendable Fixed Long-Term Totals General Re.-nue Service Note 121 Service Trust Assets Debts Karoo Only Fund Equity Contributed capital: In aid of construction -- -- -- 15,121,693 -- -- -- -- 15,121,693 From general fund -- -- 1,359,932 -- -- -- -- 1.359,931 -- -- �- -- -- -- -- 16,481,625 Investment in general fixed asse:s -- -- -- -- -- 32-477,065 -- _AZ,477,065 Retained earnings: Reserved for revenue bond retirement -- -- -- 251,504 -- -- -- -- 251,50% Reserved far future insurance claims -- -- -- 750,000 -- -- -- 750,000 Unreserved -- -- -- 11,259,300 2,218,279 -- -- -- 13,477,579 Fund balance: Reserved for encumbrances 928,445 2,103;`.49 -- -- -- -- -- -- 3,032,095 Reserved for ;mounts due beyond one year 753,FA9 437,500 -- -- -- -- -- -- 1,191,369 Reserved for rsi;mbursenent agreements -- 632.469 -- -- -- -- -- -- 632,469 Resarvad for dJirster relief -- 115,102 -- -- -- -- -- -- 115,102 Unreserved: Designated For: Vacation and skk !eave 2,050,501 -- -- -- -- -- -- -- 2,050,501 Special enforcement 25,000 -- -- -- -- -- -- 25,000 Future development -- 78,226 -- -- -- -- -- -- 78,226 UndesEynated (iJot2 11) 11028,111 9,543,400 73,101 -- -- 2 1, 10,038 -- 12,754,717 Total rotained earning=/fund bal:.nce 4,785,927 i2 ?i6 4: "(11 11,510,804 I 8 2 2,110,038 - 34,358,562 Totdl fund equity 4,785,92t 12,910,346 73,16.9 27.992,429 2,968,279 8,279 2.110 0 B 32.477.055 - 63,317,252 Ccm.I traents and contingencles (Notes 4, 5, 10, 11} -- - -- - - -- -- -- Total liabilities and fund equity $' g„7,Z,271 1 .ER 3 4 73,168 32,969,61A 4 a,.94.475 1,334:742 21LVL K A77,916,5 111,241,296 tb See accampanylan note± to cenbinea financial statementz 3 i CITY OF HUNTINGTON BEACH EXHIBIT II • Combined Statement of Revenues, Expenditur?s and Changes jn Fund ^ounces - All 6overnarrntal Fund Types and Expendable Trust Funds Year Ended June 30, 1981 Government&) Fund Types _ Fiduciary Fund Types Special Oebt Expendable Total General Revenut Service Trust (Memo only) R evc,ues Ganeral property taxes ke..te 3) $11,250,750 -- 514,217 -- 11,765,007 Other loc_I taxes 16,994,338 -- -- -- 16,954,338 Licenses and permits 21984,303 1,879,380 -- -- 4,963,683 Fines and forfeitures 1,526,072 -- -- -- 1426,072 Usa of -money and property 2:552.�-:1 1,481,445 -- 262,958 4,297,040 P y.cnue from otner age-cie3 4,495,328 7,698,023 -- -- 12,193,351 Charges for current !ervices 1,382,055 106,909 -- -- 1,488,964 Cm tributlons -- -- -- 257,846 257,846 Other ►evenuaa 366,12$ 8,124 -- -- 374,245 Totti revenues b1,55.,648 i1,173,R91 514,217 520,804 53,760,550 Expend 1 t urea: Administrative 479,481 9,773 -- -- 499,254 Support 4,792,744 73.361 -- -- 4,866,105 Comr,4-wity services 5,337,407 303,190 -- 5,640,597 Public safety 18,916,394 1,061,231 -- -- 19,977,625 Highways and streets 6,077,756 3,174,106 -- -- 9,251,852 O.vins and Sorer! 368,991 1,609,262 -- -- 1,978►103 Park development -- 96;,355 -- -- 963,355 Paid to participants In en layee deferred :ar.pensation plan -- -- -- 13,136 13,186 Relmbursement egreements 430 -- -- iy30 Loan subsidies -- -- -- 104,754 104,754 Grants -- 2,379,240 -- -- 2,379,240 Miscellaneous 4,521,710 33,704 442 4,555,856 Aedemp_ion of matured bonds -- -- 230,000 -- 230,000 Interest 272 J8 272,087 - �— Total expenditures 401494093 ",,07,652 502,525 117,940 50,722,514 4 I` I { I CITY OF HUHTIHGTIIli B!ACH C.:HIBIT li Combined Statement of Revenues, Exprn_itures as:� Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Y-ar Endpd .tune 30, 1991 roverneent%l Fund Types Fiduciary Fund Type Special Debt Expandable Total General Revenue Service Trust (Memo only) Excess of revenues Rv_r expenditures $I A57,2S5 1.566,229 11,688 402,804 3,038,036 Other finai::%ng sources (uses): Operating transfers in (out) (615,004) 615,604 Exccas of revenue and operating transfers ii over expenditures and operating transfers cjt 442,251 2,181,233 11,688 4112,Bbh 3,038,036 Fund balance at June 30, 1980 as previously reported 39382,263 9,090,736 32,667 1,357,174 13,912,840 CL;;i*uiativ-- effect of change t- accounting principal (Mote :} 69 2,890 1,545,7113 -- -- 2,928,603 Fund balance, as adjusted June 30, 1980 49345,i53 11,056,449 82,667 1,357,174 16,841,443 Equity transfers in (out) 1 47 ) O27,336) (21J1 1) 350,006 -- Fund balance at .Tune 30, 1981 ;4,785,9c7 RAM,346 M 168 2.110,038 19,879,479 See r_, panying notes to combined finaxial statements I 5 1 CITY OF HUHTINGT'3N BEACH EXHIBIT III Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Governmental Fund Types Year Ended June 30, 1981 _ General Fund Special Revenue Funds Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: General property taxes $11,238,626 $11,250,790 S(4?1836) S - other local tax_s 16,175,000 16,994,338 819,338 - -- -- Licenses and permits 3,047,108 2,984,303 (62,805) 1,769,000 1,879,360 90,380 Fines and forfeitures 1,367,000 !,526,072 159,072 -- -- -- Use of money and property 2,614,770 2,552,637 (62,133) 1,233,200 1,451,�45 246,245 tev-_nue from other agencies 4,031,160 4,495,328 4G4,168 11,983,544 7,698,023 (4,285,521) Charges for current services 1,531,890 1,382,055 (149,835) 24,000 :*6,989 82,909 Other revenue 45,1100 _ 66,125 _• +:"i 2.394,609 8,124 (2,386,435) Total revenues !L0,110,954 41,551,648 1,440,694 17,424,353 11*173,881 (6,250,472) Expenditures: Adainistrativ: 433,042 480,512 (47,470) 13,446 9,773 3,673 Support 5006,597 4,913,560 193,037 114,889 76,810 38079 Com:.unity services 5,232,126 5,434,608 (202,482) 564,671 456,828 107,843 Public safety 19,242,710 19,007,983 234,727 1,611,G39 1.499,060 lt29575 High"y and st-ee_s 6,547,195 6,538,397 8,798 17,614,892 4,014,826 8,600,066 Brains and sewers 399,247 :?5,446 23,801 2,571,861 1,726,188 045,673 Park development -- -- -- 2,972,273 1,212,453 1,759,820 Reimbursement agreewnts -- -- -- 10,75C 430 10,320 Grants -- -- -- 5,933,595 2,681,229 3,252,366 Miscellaneous 6,221,714 4,672,313 11549,381 1,844,357 33,704 JAM AU Total expenditures 43,182.631 41,422,839 1,7592792 28,252,373 t1 711 301 16,541 072 6 CITY OF HUNTINGTON BEACH EXHIBIT III Combined Statement of Revenuue, Expenditures and Changes in Fund dalances - Budget and Actual Governmental Fund Types Year Ended .tune 30, 1981 General Fund Special Revenue Funds Yar I ante - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Excess (deficiency) of revenue over expenditures (3071,677) 128,809 3,700,486 00,828,020) (537,420) 10,290,600 Other financing: Operating transfers in (out) 951,000 (615,604) (1,566,0134 6,Bn4} (1,020,000} b15�,004 1,6351G04 Excess (deficiency) of revenue and operating transfers in over expenditures and operating transfer: out (2 12f) 67 ) (486,195) 1,6 4,482 (11,848,020) 77,584 11.225,604 Fund balance June 30, 1980 as previou 17 report!d 3.382,263 3,332,263 -- 9,090,736 9,090,736 -- Cu;,ulative effect of chance In accounting principle. (Note 2) 962,890 962,890 -- 1,965,7,11) IQGS,713 Fund balance, at June 30. 1980, as adjusted 4,345,153 4,345:153 -- 11,056,449 11,056,449 Equity transfers in (out) -- (1,477) 1,4 7) -- (327,336) 327 1,6) Fund balance at June 30, 1981 budgetary basis 2,224,476 3,657.481 1,633,005 (791,571) 10.906,697 1•„98,268 fncumbrences outstanding at June 30, 1981 -�4+.?,446 2� 8,446 — 2,103,649 21103,649 _ Fund balance et June 30, 1981 GAUP basis $3 1, 52,922 $4 8 27 $1,633,005 $'. 31_ • 2,078 $12,910,346 511.5981258 See accur,:anying notes to combined financial statements 7 ?r i.NTINGTON BEACH EXHIBIT III ,--m Zed State-.:ant of Revenues, Expenditures -nd C-anges i-t fund Delences - Budget and Actual Cov,erro.cr.tai T,.nd Types 'fear Ended Jun- 30, 1981 i Debt Service Funds Total Variance - Variance - Fsverable Favorable Sue2et Actual (Unfavorable) 0 et Actual (Unfavorable) Rere-%ues: General property taxes $483,915 SS14,217 $30,302 $1i,782,541 $11,765,007 $0 7,534) Other local taxes -- 16,175,000 16,994,338 819,338 Licenses and permits -- 4,836,109 4,863.03 27675 rines and forfeit'-jres -- -- 1,367,000 1,526,072 155,072 Use of money and property -- 3,047,970 4,034,002 186,112 Rcvenue from other agencixs -- -- -- 16,014,704 1209303S1 (3,921)353) Charges for current services -- 11S55,850 1,488,964 (fi6,526) Other revenaas 2,44L OOg 374124y (21065,760) Total revenues 4}1915 15 4.21� 30,302 58.019.222 53,I3.746 (' ,779,476) Expe:►di Lures: Acbeinistrative -- -- -- 446,488 440,285 (43,797) Support -- -- -- 5.221,486 4,990,370 231,116 Comunity zervices -- -- -- 5,796,797 5,891,436 (94,639) Public safaty -- -- -- 10,554,349 20,507,C43 347,306 MIghw*ys and streets -- -- -- 19,162,087 10,SS3,223 8,608,86! Drains and sewers -- -- i,971,108 2,101,634 865,474 Paris develWne t -- -- -- 2,972,273 1,21?0153 1,759,820 Reiaburaeeaent agreea'ents -- -- -- 10,750 430 10,320 Grants -- -- 5,933,595 2,681,229 3,25:,366 Miscellaneous 600 442 158 8,066,671 4,7064479 31360,192 RedenS.tion and natured bonds 230,000 230,000 -- 230,000 230,000 -- Interest 271,988 272,087 _ ' ) 2714988 272,097 (99) Total expenditures 502,588 502,S29 S,� 71!,937,5a2 53.E+36.669 18,300,92) 8 i i • :IT OF 4UHTIHGTOH REACH EM BIT lit :oat);ned Statement of Revenues, Expenditures and CN&naes in Fund balances - tludget and Actual Governments] fund Types Year Ended June 30, 1931 Debt Service Funds Total Variance - Variance - Favorsble Favorable Su et Actual (Unfavorable] budget Actual Unfavorable) Excess (deficiencies) of revenues ovxr expenditures $(18,673) $11,688 $30,361 S0 3,918,370) S (396,923) $13,521,447 Other financings Operating transfer► In (out) - -- 6 000} __ 59,000 Excess (deficiencies) of revenues end operating transfers In over expendituras and operating transfers out (t .f,73) 11,688 2.361 (IL27.170) 6 "Z } 11 O 44 Fund balance at June 39, 1980 as previously reported 82,667 82,667 -- 12,555,66E 12,555,666 -- Cww lative effect of change in accountily principle - 2,9228,603 t E,� 8,603 Fund belan.e at June 30, 19N, as adjusted 82,667 $2,667 -- 15,484,269 15.484,269 -- Equity tranfers in (out) (21 t8 ) COOy Fund balance at June 30, 1981 budgetary basis 63,994 73,168 9,174 1,496,899 "037,346 13,240,447 Eacu rances outstanding at June 30, 1931 - 0;, ?2,095 3,032,095 FuM balance at June 30, 1981 GAIT* basis $63,994 $D-1` $ 9,174 $ 1,. 28 $17,769,41#1 $1 ,21Y0,447 Soe accompanying notes to cwbine+l financial statements 9 CITY OF HUNTINCTOM BEACH EXHIBIT Iv Coabined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year Ended .tune 30, 1981 F.n.er rise Internal Total (tote 12 Servite (Mma Only) Operating Revenues: Charges for current services SS96691115 1,954,176 71523,291 Use of -money and property 170,342 -- 170,342 Other operating revenue 14 018 145,018 Total operating revenues 52994,475 4,475 1,854,176 7,838,651 Operating Expenses: Source of supply 1,078,819 -- 1,079,819 Pumping expense 1,030,123 -- 1,030,1?3 Vatar treatment 32,671 -- 32,671 Transmission and distribution 5739666 -- 573,656 Administrative and general 1,065,301 I13,955 1,179,2S6 Contribution to general fund In lieu of taxes 913.667 -- 923,667 Depreciation 794,569 784,908 1lorkars' compensation claims -- 654,05S b54,055 Employee medical claims -- 784,808 784,569 Liability Claims -- 199,579 195,579 Other 5,774 5,774 Total operating expenses $5 4, 88,836 1,758071 7,247.007 { w i CITY Or HUNTINGTON @£RCM EXMiBtT IV Combined Statement of Revenues, Expenses and Changes In Retained Earnings - All Proprietary fund Types Year Ended June 30, 1581 Enterprise Internal Total Note 12 Service me;-pnly} Operating income 495109 96,005 5g1,64� Non-operating Revenue (_xp*nse)s Interest income 636,880 554 AI 1098,741 Other revenue 194,667 -- 194,667 Interest expense 20 ) �y (209,345) Total non-operating revenue 624,202 559,861 1,tf 1063 Net Incas& 1,119,841 655,866 1.075,707 Ratalned earnings at June 30, 1580 10,3R1,016 2,312,413 12,693,429 Increase in reserve for retirement of rew7nut fronds 9,947 92947 Retained earnings at June 30, 1981 S11 l0 tiz4 2 8 2 14,479,083 See accompanying notes to combined financial statements 1! CITY OF HUNTING)?" BEACH EXHIBIT V Combined Statement of Changes In Flnenciai Position - All Proprietary Fund Types Year Ended .Tune 30, 1981 Enterprise Internal Total Note 12 Service Kemo Only) Sources of Working Capital: Opzratloasi 4et Income $1,119,S41 655,866 1,775,707 Item not requiring working capitalt Depreciation _ 784,503 87 h.S69 Larking capital provided for by operetions 1,904,410 655,866 2,560,276 Increase in note payable 526,817 -- 526,917 Increase in reser►: for revenue bond retirement 9.07 9 hj Total sources of working capital 2,441,174 655,8b6 03. 57.040 Uses of Working Capital: Addition of fixed assets le943,975 Increase in restricted assets - cash with fiscal agents 14,038 -- 14.038 iteclassification of note payable 38,678 -- 33,678 :tecla:slfication and redcmption of long-tare bonds payable 252.047 252,047 Total uses of working capital 2 2. ►e,738 - 2.248,738 i� tint increase in working capital 1gI.4;6 6�5,t�6 84$,302 E — I 12 t ----j CITY GP HUNTIPIV ON OEACN EXHIBIT V Ca*bin.d StateRu nt of Changes in Financial Position All Proprietary Fun! Typv: Year Ended .tune 30, 1981 Enter rise Internal Total Mote I Service (how Only) Changes In Cor..ponents of Vorking Capitals Increase (dctrease) In current assotst Cash and Icing term deposits $239,735 841,331 1.081,066 Accounts receivable, trade (net) (7,843) -- (7,943) Accounts receivable, other (net) 2,626 -- 2,426 Interett receivable 16.166 (}6�}72j 11994 Due from other funds ._ 96; Total 258,484 028,123 1 D. Z8,6 7 Decrease (Increass) in current liabllltiest Arcm nts payable �16.192 (1,771) 116,521 Accrued payroll afi96 Accruotd expenses (9S,857) -- (95,857) Custc-er dtpesits (34,370) -- (34,370) Due to other funds (63) -- (63) Accrued Interest payable 447 -- 447 Matured Interest payable 5,462 -- 51462 insuran:e claims payable -- (170,582) (170,502) Increase in current portion of notes and bonds payable (49,859) - kn B59) Total (58,048) (172,257) (230,105) Net increase in working capital =192,M6 v35,86b 8L8,302 See accompanying notes to coa+bined financial statru+ents t 13 • CITY OF M14T I NGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS June 34, 1981 Note (1) 3umnary of Significant Accounting Policies The following is a sumary of the significant accounting policies of The City of Huntington Beach, California (City). A. fund Accounting The accounts of the City are organized an the basis of funds and acc--jn: ,groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures, or expenses, es appropriate. Government resources are allocated to and occaanted for In Individual funds based upon the purposes for which they are spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements in this report Into six generic fund types and three broad fund cvregorles as follows: GOWM%ENTAL FUNDS General Fund The General—Fund Is the general operating fund of the City. It Is used to account for all financial resources except those required to be accounted for In another fund. Special Revenue Funds I` Special .avenue Funds are used to account for the proceeds e. speciftc revenue sources (other then special assassments and expendable trusts) that are restricted to expenditures for specified purposes. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, Interest, and rotated costs. MPRIETARY RINDS Enterprise Funds Enterprise TG7 ds are used to account for operations that are financed and operated In a wanner sir.ltar 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 public on a continuing basis be finances or recovered primarily thrcugh user charges. 1 14 1 1 I i f I i 1 f i s CITY Of HUNTINGTON BEACH NOTES TO CDMNiNED f1MAMCIAYL STATEMENTS internal Service Funds Internal Sery c• ands are used to account for the financing of services provided by one departm"t to the other departments of the City on a cost reimburseoent basis. FIDUCIARY FUN6S �endable Trust Funds xpendsb t Trust Funds are used to account for assets held by the City for individuals, private organizations or other governments. Expendable Trust Funds are accounted for In essentially the some manner as governmental funds. B. FIXED ASSETS AN4 LOK-TERM LIABILITIES AND RECEIVABLES The accounting and reporting trestment applied to %Via fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds and Expandable Trust Funds are accounted for on a spending or "flnanclat flow" measurement focus. This meens that only current assets and currant liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental furl operating statements preeent Increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a sumnary of sources and uses of "available spendable resources" Ouring a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for In the General Fixed Asset Group, rather than in 9wensmentel fr'nds. Public tlosain ("Infrastructure") general fixed assets consisting of certain improvements other than buildings, are not capitalized along with other general fixed assets. Me depreciation has been provided on general fixed assets. Long-term liabilities axsected to be financed from governments) funds are accounted for In the General Long-Tema Debt Account Group. not In the governmental funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Noncurrent portions of long-term receivables due to governwntal funds are reported on their balance sheets, in spite of their spending measurement focus. Special reporting troatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent not current assets. Reco9nitlon o; Governmental fund type ravenues represented by noncurrent receivablas Is deferred until they become current receivables. Noncurrent portions of ions-term loens receivable are offset by fund balance reserve accounts. I5 1 ` CITY OF HUNTIHGTO14 BEACH MOTES TO CAMSiiIED rIHAHCiAL STATEMENTS 1 Because of their spending measurement focus, expenditure recognition for governments) fund types is limited to exclude &amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-tertian amaounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General tong-Term Debt Account Group. Al! proprietary founds are accounted for on a cost of services or "cap!tai maintenance" measurement focus. This ,means that all assets and all liabilities (whether current or noncurrent) associated with their activity are Included on their balance shatts. Their reported fund equity (net total assets) Is segregated Into contributed capital and retained earrings components. Proarietao -und type operating statements present Increases (revenues) ind decreases (expenses) in net total assets. The accounts of the Water Utility Fund include $31,113,131 of property and equipment, less $7,016,370 accumulated depreciation. Of these assets, approximately $8,3730000 represent water service assets which have been donated to the City br Independent contractors prior to June 30, 1968. Such donated assets have been recorded at values estimated by City personnel. During 1977 and 1978 the City conducted an inventory of fixed assets of the Water Utility Ftind. This inventory resulted in the recording of approximately $1,e94,000 in water service assets that wers previously unrecorded. The Clty's evaluation of its water utility fixed assets Is still continuing. Depreciation of fixed assets is charged to operations using the straight-line method, based on the useful life of an asset wlzhin a particular group as follows: Asset Group Life Production and pumping plant IS-40 years Transmission and distribution pleat 25-75 years General plant 10-30 years Transportation equipment 6-10 years Ttx Meadowlark Golf Course property and equipment are stated at cost and ere drpreclated using the straight-line method over the estimated useful lives of the assets. C. 0asis or Accounting Ersis of accounting refers to the recognition or revenues end expenditures or expenses in the accounts amid the reporting of revenues and expenditures In the financial statements. oasis of accounting relates to the timing of the massurerents maede, regardless of the measurement focus applied. i6 i t ! CITY OF MKINVON BEACH • NOTES TO COMBINED FINANCIAL STATEMENTS All governmental funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditure: are generally recognized under the m*difiad accrual basis of accounting when the related fund liability is Incurred. Exceptions to this general rule includet (1) accumulated unpaid vacation, sick leave, and other employee amrounts which are not eczrued; ani (2) principal and Intwrest on general lone)-term debt whl-h is retognized when due. All proprietary funds are accounted for using the accrual basis of acccunting. Revenues are recognized when earned, and expenses are recognized when incurred. D. Audg+Lary Process Annual budgets adopted by the City Council provide for the general operations of the City. Revenues for the Special Revenue Funds are budgeted by entitlements and grants; expenditures .,nd transfers are budgeted based upon available fund resources. The modified accrual basis of accounting is emsployed In the preparation of the budgetary Information. Encumbrances are thus includtd with expenditures for comparison with budget data but not in the combined statement of Revenues, Expenditures and Changes In fund Balance. Expenditures In that statement will be less than expenditures reported in the combined Stctes"t of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual by the amount of encumbrances outstanding at June 30. 1981. These encumbrances are suotracted from the fund balances In the later statement so the ending fund balance In the two stater. is will be equal. C. Encushraneas 'Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded In order to reserve that portion of the applicable appropriation. Is employed as a budgetary control In the General and Special Revainue Funds. Encumbrances outstanding at year and are reported as reservations of fund balances since they do not constitute expenditures or liabilities. F. Investments Investments are stated at cost, which approximate market value. Investments generally consist of federal government-backed securities, bankers acceptances, and municipal securities. C. Va=atlon and Sick tsava h it is the policy of them City to record the cost of vacation and sick leave men paid. At June 30, 1581 the total unrecorded liability for vacation and sick leave acckowlated by City employs was approximaataly $2,154,000. In the General Fund, funs; balance has been partially designated fur this amount. The liability has been recorded In the proprietary funds. i 1� i CITY OF HIINTINGTON BEACH NOTES TO COME111ED FINANCIAL STATEMENTS 1 H. Pension Plan Substantially all City employees participate in the Public Employees Retirement System (PU')) administered by thi State of California. The total pension expense recognized by the City for the fiscal year ended Jmoe 30, i381 was approximately 3;,oi2,koo. At 3une 38, 10,81, the excess of the actuarially computed value of vested benefits over avoliable asset%, If any, was not available. J. Deferred Employee Compensation The City has a deferred compensation plan whereby eligible City employees may elect to defer a portion of their earrings for federei Income tax purposes. The deferral corpensetlon plan has been approved by the Internal Revenue Service (Service). The Service stipulated in Its approval that legal title to the deferred comWsatlon funds, together with any interest thereon, must rest with the City. For purposes of f►:anclat statmaent presentations, these deferred cementation funds have been treated as a separate Expendable Trust Fund of the city. X. Total W%-Ans on Combined Financial Statements Total columns on the Combined Financial Statements are captioned moArandum (mono) to indicate they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes In financial position in conformity with generally accepted accounting pr"nciples. Neither is such data comparable to a consolidation. Interfund rllnirations have not been mrde in the aggregation of this date. L. Op*rational Reserve Fumd The City has established an Operational Reserve Fund (Special Revenue Fund) under Articls Xllis Section 5 cr the State Constitution. Thi, purpose of the fund Is to provide sources of monies for operating expenditures In the event of future declines ir, revenues from the State and Federal government. Mote (2) Accounting Chanr A change in accounting principla has been effected for fiscal year 1991 to conforms with Statement 1 of the National Council on Govarratintal accounting. In prior years, encumbrances were treated as expenditures and reserves were consl0tred separate from fund balance. In i._cordance with Statement 1, encumbrances are reported as reservations of fund balances since they do not represent expenditures or liabilitles. The curaulativa effect of this change In accounting principle at .tune 30, 1984 was to increase boginning fund balance by $962,890 for the Central Fund and 51,955,?13 for the Special (:venue Funds. Beginning fund balances also Include reserves reported separately at June 30, 19110. Certain other reclassifications were made to confooR with Statement It the only significant revisions were the inclusion of the Capital Outlay Fund as a Special Revenue Fund rather than a Capitol Projects Fund and the combinatton of the Parklnq Meter and Traffic Safety Funds (pre-icusly Special Revenue Funds) with the General Fund. 18 v CITY OF HUNTINGTON BEACH NOTES TO COMSIXEO FINANCIAL STATEMENTS Hot* (3) Property Taxes Property taxes receivable as of June 30, 1981 and expected to be collected during fiscal year 1982 are recognized as revenues In 1981. IrT ound and delinquent taxes are recognized as revenue when received. Note (4) teases The City has entered into two noncanceiable lease and sublease agreements with the Huntington beach Public Facilltits Gorporttlen (Corporation) For the Huntington beach f�'vic Center complex and the Central Library. Under both agreements, the City is to pay all texas, insurance, administrative and cN itenance costs. Title to the site Improvezwnts will pals to the C!ty at the termination of the leases. The City has determined that such leases art capital leases and require use of the financing rsethod. Under the financing method, a transaction Is regarded as an Installment purchase whereby an asset and related liability are recorded. Annual yenta: oayaents are treated as reductions of the liability. Advance rentals from the Corporation received by the City for leas* of the sit* upon which the facilities are constructed are recorded as deferred rental Income In the General fund and are amortised over the term of the sublease. A description of each tease agreement Is as follows: A. Civic Center This involves a noncancelable lease and sublease agreement with the Corporation for the Huntington beach Civic Center. The City has leased thw Civic Center site to the Corporati-m for $350,000 advance rental. Tim tam of the lease is from January 15, 1972 to one week after the termination of the sublease. The Corporation has subleased the Civic Center site and Improvements to the City for $054,500 annual base rental. The sublease commenced July 1, 1974 for a torn of 30 years or until all debts of the Corporation related to the Civic Center have been discharged. whichever came% first. >S. Central Library This involves a nonconcelable lease and sublease agree.ent with thu Corporation for the Central Library. The Clty has leased the site to I the Co-parW on for $300,000 advance rental. The teem of the tease is from September 1, 1972 to one week after the termination of the i sublease. The Corporation has subleased the Library site and Improvements to the City for $393,000 cnnual bate rental. the sublease comteenced February 15, 1975 for a term of 30 years or until all debts of the Corporation related to the Library have been discharged, whichever cones first. II k tg CITY OF 1RlItT 1IF OU UAC1i NOTES TO COMDINE?[! FIHA*C1AL STATE►IENTS Note i51 Ckmitments In 1969, the City entered Into an operating lease agr*n-unt with the lluntlngton Beach Parking Authority for the least of cartaln parking 'acilities. Tht ternm of the leaaa Is 24 years or until all of the Parking A-ithority`s 196a r-avenua kends have boon wetlred. Annual base rental payments under the lease agreement are $170,050. I`ncrshlp of the parking facility will rekaain with the PArk!ng Authority. Mlniersa aggrcyate rental com Itments under the agreement are as followst Year Amount 19>a� S I70,0S0 ija; ,1TB,O5O !9a�4 12l,OSO t96S 170,OS0 19a6 t70,0S0 :MMAder 11,215,344 sl.atats5o j i The City has entered Into egraesaents w:th contractors ►Alch generally provide for possible raiabursemnt to contractors of costs incurred in the construction of +sitar, sewer, and drainage facllitie,s. The extent of such relmburswtnt will generally be subsequent fees which are collected for other users of the facilities. The City recognizes fees as revenue as they are collected and charges sabtaquent paymnts to expenditures as they are made. (tote (6) In-tszments In Marketable Socurlelts A sw-wary of tho City s marketaTtecurltIts at dune 30, 1981 is as followat Approx. I Interest Principal Market Description Rates Maturlty Amount Cost 1Nlos General Fund City of 14ntingtian Beach 197Q Park Bends 6.0 ISU $25,000 $24,509 S1S,75B Huntington iaach Parking Authority i9E:8 Parking Raven-it Jonas 5-5.25 194M-1994 104,095 $5,302 64,I2S Total investments $123,000 %L call see 12 29 CITY OF 1RINTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS N otx (7) Outstanding Indebtedness R sumnary of tonded Indebtedness outstandi% ,, of June 30. lot is as follm st bonds Bonds Rands Data of Years of Rate of Amount of Oututanding Natured During Outstanding lssue Bonds Itiaturlt7 Interest Or Issue .lvr►a 30. 1 3O Year Jtna 35, 1381_ General Obligation Bonded Debt Groupt 1955 Voter bond 1555 1956-1902 S.5114 S 330,000 -0- -0- -0- 1953-1976 3.00 490,002 -0- -9- -0- 1977-1500 2.00 1kojeR0 3S.000 35,0Bq -O- Total 19SS Water Bond sole" 35,000 35■20 -t,- 1970 Park pond 1975 1971-1972 5.00 225,102 -R- -11- -0- j 1973-1974 5.25 255,02 .0. -0- -0- 1975-1977 5.55 440,004 -a- -0- -a- 1970-1983 5.75 1,150,e00 625,000 195,000 430,060 *m-1995 6.00 3,910000 AX&O00 -0- 3,930,000 6 ti• 500R 1 800 A Total 1970 Park Bond 000000���_ 5 95. _ + 60000? Total general obligation bonded debt 36,860.QRL" Si R00 5230,040 Si_ ,360,003 I ss ue i Revenue sends Water Utility Fund - 1963 Water Revenue Bond 1963 1963-1970 4.75% $700,008 3 -0- $ -0- S -G- i 1975-1978 3.25 460,900 -0. -0- .0- ` 1979-1961 3.30 400,000 270,000 130,000 140,000 1982-1903 2.40 304,000 295,000 -a- 235,000 190-1"3 3.50 1.94.000 1 b� 25.0a0 94,000 1_,331,000 Total Revenue i Bonds (a)(b) s 0,0Ra 31,g90.0a0 s22i3Oa0 $1,766,000 Ler currant portion 140,000 Loag ten► portion 1 626 000 21 s CiTY OF HUNTINGTON NEACH NOTES TO COMP IKED F I NANC i AL STATIENINTS (a) The water revenue bonds do not represent a 9tneral liability of the City of 1luntington peach. (b) At June 30, 1581, there were $1,950,000 authorized but unused 1963 water revenue bonds. Thert are a number of limitations and restrictions contained in the various bond indentures. TM City iY in cotspliance with all llmttations and restrictions. Note Hetdwlark r1oif Course Note Payable In 191S, the City entered Into an agreement to purchase the iesdwiark Golf Course from an Independent party for a total purchase trice of $3,M,000. Terms of the agreement tatted for an Initlal down payment of $928,000, with the ramalning 32,272,000 in the fora of a long-term 7 percent note. At June 30, 1981, the balance of the note was $1,68S,044. A schedule of yearly principal and interest paymientz is as followst Year Amiount 1982-2001 Si;0,000 2002-2008 2C4,4Q0 2009 1 U 0-01 in connection with the above purchase, the City has leased the golf course operation to an outside party for 34 years, at a minim n lease income of $150,000 annually through 2007 and a percentage of Inca= based upon gross "vents for the years 2008-2009. As cart of the Initial p"nt of 3929,000, the Courty of Orange centributed $600,000 upon the City's guarantee to use general City funds when and If necessary to ensure that Meadawiark Golf Course will be mraintained as open spate. f The note payable Is collateralized by future revenues and does not represart a general obligation of the City. Note (9) San Joaquin Reservoir �I In 1979 the City and several other local titles end water districts purchased the San Joaquin Reservoir. The City is paying a portion of the debt service for the 1961 construction of the reservoir based an Its percentage ownership The construction bonds will be fully redee=ed in 1992. Operating and Im►proverrant costs are also allocated to the omiara in the Name proportion. At June 30, 1581, the City's total principal payments due under the purchase agreement are M6,817. Annual principal and Interest paymrants for the next five years and the remalnder of the +rgrotment are as folloarst 22 I CiTY Of KUNTiN6TDN REACH ! NOTES TO COMBIKI) FINANCIAL STATEMENTS Year Amount 1 33 S 56,61 1384 5e191S 1983 57,310 1986 57,71; 1987-92 152,006 Total Payments SM Lit The City has recorded Its portlan of the reservoir as a fixed asset In the Hater Utility fund. Note (10) Litiastion At June 30, 1981. the City was defendant in several actions arising In the normal course of business. li saverat suits, the City was Insured for public tlab(llty and property damage through various Insurance policies aggregating up to $20,000,000 coverage for each occurrence. In the remainder of the suits, the City Is self-insured. In the opinion of the City attorney, the actual impact to the City upon resolutloa of the outstanding claims Is Insignificant and the self Insurance funds are adequate. The City has been naesed as a defendant In a class action case seekinp a refund of certain proparty taxes levied for the fiscal years andnd June 30, 1979, June 30, 1990 and June 34, 1941 by the City. The complaint alleges that property taxes have been assessed and paid In excess of the limitations provided by Article X1i1 A of the California Constitution (Proposition 13). The excess taxes In question are thfyse property tax amounts authorized by city charter, and approved by the Voters, to partially Watt the City's contribution to the Public Employees Retlresent System MRS) on behalf of the employees of the City of Huntington Beach. The class of persons whose the plaintiffs are attempting to represent has not yet been Certified by the court; hywevsr, the purported class represents all real property owners within the City who paid property taxes during the years in question. The actlons against the City are similar to other actions, to which this City Is not a party to, flied against other municipalities In the State. Final resolution of such casts Is not expected for some tide and several significant legal Issues are yet to be resolved before proceeding further. Legal counsel for the City has determined that at this time there is no reasonable basis for concluding that the City will be required to refund the special property tax collected during the years ended June 30, 1973, 1980 and 159). Mote (11) Manpa„er Grant Fund The Manpower Grant Fund has an occm.uleted deficit of s1191US at June 30, 1301. The deficit Is primarily due to expenditures Incurred which may or may not be fully relwlbursed under the Comprehensive t,layment and Training Act (CETA). Any am was not fully reimbursed from the various grant funds watt be reimbursed from the Clty's General Fund. f 23 I CITY OF MMTi*GTON KACN • NOTES TO COMIiNED FINAK IAL STATEMENTS Rote (12) Stern ents of Enterprise Activity The City has two _nterprist Funds which are run on the save basis as coeasarciai enterprises -- water utility and Meadowlark Golf Course. The key financial data for the year ended suns 30, 1981 for those funds are as followst eater ilaadowlark tkility Calf Course Total Operating revenues S S B1 13 18,528 5,832,"l Operating expensest Depreciation 168,809 1S,J6o 78�,569 Other 5,;J3,03d 1 60 S,kfl8,836 Operating Intone S 3h1,05J 2,74E 3;3,g25 Net Income 3 1,09a 21.A>.R 1 11 6►1 Assets 529,J62,9p1 20, 5,653 2 Gk� D onds and notes payable S 2,I1R,U9 1,846.E 3,981,136 Fund Equity S26,JiJ,lAS 1 2Jy ,28k 2J:'192,k29 Acquisition of fixed assets S .112iWzs i 24 I I i I Combining Financial Statements I �I f 1 This tige Left elm* intentionally t } CITY OF HUNTINSTON ILAC14 STATEMENT 1 Special Revenue funds CoDbinln0 Balance Sheet June 35, 1941 Park Special Planned Federal Federal Aequlsltlan Special Gas Library Local Reveaue llanporar Ottter and Operetlonal Capital Tax Service Serer Drei mae Shart I:raats 67+mte Deveim wart Reserve Outlay Total Assets Cash and tors deposits $1,939,491 -- 2,2516,070 1,763,069 5,207 -- 91,365 2,592,h6 1,472,021 1,796,203 11,922,252 Interest receiv`ble 31,594 -- 36,747 28,711 -- -- -- 31,867 23,955 332,212 1"'076 Sue frui other yaeernsents, net 413,913 $95.114 126,367 3446,30 133,192 l.S7i,025 Total assets J2 a,3 i.g99 2 E, 4c,00 1- ,791,?74 i1 128,367 }�� j��} 2.7i+. , t j6 1,126,415 tJi3d3,3S; Liahilltles and Fund lalancr 1.14b1littest Cash overdraft -- -- -- -- -• 273,241 .._ -- -- -- 273.241 Accounts payable 83,7" -- 31,632 -- -- 21,416 129,211 50,722 -- 151,02t 675.790 Accrued payroll -- -- .- -- -- 1S,S35 3,357 06 -- -- 19,531 Deposits 1,035 - 21664 740 _ 4,439 Total liabilities 34,833 �_ �„}1iZ6 13 0 1 132,558 52,101 �1.02i 3,OO4 See accaapanylnl accountants, report. 25 I t CITY OF HUMTINGTOO BEACH STATEMENT I Special Revenue Funds Combining Balance Sheet June 3P, 1981 Park Special Planned Federal Federal Acitulsitlea Special Get Library Local Revawa Manpower Gt%tr and Operational Capitie, Tax Service Sewer Oral Sharing treats, 4rattts Oftsic"not Reserve Outlay 1ote1 Fund balanceat Reserved fora t:ncuabre►.ces 598,767 -- 39,265 71,743 9,207 1,265 300,744 249r"a -- M3,560 2,103,649 Amounts due beyond one Year -- -- 437,500 -- -- -- -- -- -- -- 637,500 Relabursemont Agreements -- -- -- 632,469 -- -- -- -- -- -- 632,469 Disaster Relief -- -- -- -- -- -- 115,102 -- -- 115,102 Unrerervodt 0@21gnated fort Future development -- -- -- 31,226 •- -- -- 47,000 -- -- 78,226 Undeti9nated 1,711,398 ZjZ8,942 1 0 12 t 1 O 0) 1' i 1) 2,416,679 I S.97S.9 6_ 831,836 91543,400 Total tune balancer oG.161 2,855,707 1.791, 0 jar (Ift,30} ISSL175 2,7121777 21777 1, 91,376 1.675,396 12,910.346 Total liabilities and fund balances $2 !+t s - 32 8 ,00] S ! $12�� �� !2 S1�Jt95:17i s1 82, 6,615 S1�t6 See accompanying accountants' report. 26 • CITY OF WJ16TI*GTON KAth STATEMENT I Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund •rionces Year Ended June 301, 1991 Park Special Planned Federat federal Acquisition Special Cal Library Local Revenue hanpawr Other and operatlonai Capital Tax Service Sower Drainaip Sharing Gra..t Grants DevelSMnt deserve Outlay_ Total Revenues: Licenses and permits f -- 73,003 439,614 S49,005 - -- -- 657,553 -- -- 1,279,380 Use of ,.money a property 273,823 -- 335,404 221,535 ",213 -- -- 361,011 4:,476 207,546 1,461.445 Revenue from other agencies 2,927,609 -- -- -- 1,6::,96i 08,814 2,510,C33 315,610 -- -- 7,594,023 Charges Mr current services -- -- -- -- » 106,945 -- -- 1061909 Other revenues J 124 - - 6.124 Total revenws 3,101,632 73,003 574,84 730,S40 1.693.M 418,410 2,510,033 1,421.9 k2,Sfi Z'i7.546 11,171,8111 Expend 1 tures: Administrative -- -- -- -- » -- -- -- -- 9,773 9,773 Support -• -- -- -- -- -- -- -- -- 73,361 73,361 Community services -- -- -- -- 14,1M -- -- -- -- 293,002 313,194 Pub11c safety -- -- -- -- 124,428 -- -- -- -- 956,603 1,061,231 Hlg;:"ys and street 2,383,375 -- -- -- -- -- -- -- -- 790,731 3,174,106 Drains and sears -- -- 6941"D 790,654 -- -- -• -- -- 123,712 1,60y,262 Park develop t -- -- -- -- -- -- 963,355 -- -- 963,355 Rolobursewnt agreements -- » 4jfi -- -- -- -- -- -- 430 Grants -- -- -- -- -- 451,a2S 1,527,415 -- -- -- 2,379,244 Miscellaneous - 33,704 33,7" Total expenuitures U.383,371 - 695,310 7911.658 `1.14,a16 451,12S 13P?,4:5 m als 2,299,886 9,607 Z 27 I t .-- l ___._I . _._! 1 .--__! .__1 __! __1 i ' CITY Or HUNTIPGTON !}EACH STATEMbiT 11 Sppcial Revaunue Funds Combining Statewtnt of Ravenuas, Expenditures and Changes In Fund Valances Year Ended June 30, 1991 Park Special Planned Faderal Federal Acgeialtion Special Gas Library Local Revenue Monpo+nr Other and Operational Capital Tic Service Sewer Ora Ina" Sharinp front Grants Oevelooment Reserve Outer_ Total Excess (deficiency) of revenue over expenditures 71 a51 73,043 279.489 (60,110) 1,570,482 (33,015) 582.618 459,370 421,476 ;2,07`040) 1,566,:29 t "or financing sources operating transfers In (out) (697,488; (73,003) _ (l 6 2. ) -- Excess (deficiency) of revenue and operating trans"ers In over expeno, •-as and operating transfers out 20,569 -- 279.488 (60,110) (114,484) (33►015) 582,619 458,:70 1,495,576 (448,M) 2,1C1,233 Fund balance at June 30, 1970 as previously reported 1,698,393 -- 2,523,97? 1,541,711 429,406 (156,810) 3,893 2,014.939 -- 1,335,325 9,990,736 Cumulative effect of change In accounting principle 591,203 52,340 ' 1� 0,165 124,032 - ?�39,26a 558,701 1,965,713 Fund balance as ad;usted June 30, 1980 2,279,596 -- 2,576,219 1,851,880 553,438 (t56,810) 3 0% 2,254,207 •- 1,694,026 1;,056,449 Equity transfer} In (out) - 1429,747) (327.33u) 429,747 (127,336) Fund balance at June 30, 1981 st got 0,165 2.855,707 1,791,770 L207 (143,025) !us) � 2 t 1=;95`976 1, =24 12.s1o.346 - See acconpanying accountants' report. E 28 i i CITY OF HUNTIMCTON BEACH STPTEMEMT 1!1 Special Revenue Funds Combining 3t4t~t of Revaquas, Expenditures and Chanyas In Fund balance - Budget and Actual year Ended June 30, 1981 Federal Revenue Shari Federal ita� Grant Park Acquisition and Var axe Other Grants evalotreant ar we Var ante Favorable Favorable 1'7arta`Ica Budget Actual (unfavorable) 8 t Actwl Favorable Favorable —__� 1k+farorab:e} Bu t Actual (unfavorable} L_ftet Actual (Unfavortblal Revenuest licenses :nd permits S -- -- _- -- Use of money and prope,ty 90,000 59,213 (30,767) -- -- -• -- •- -• l,117,400 657,55>! (459,442} Revenue from other - -- "- -- 243,200 341,643 98,648 as 1,5y2,000 1,625,961 83,961 972,St7 Chargesrges f f 411,810 f5S],717} 4,841,819 2 , 1 or current ,511,033 (2,311,785) 1,439,699 315610 ( �12i ,a") ecru 1 us _ _ Other revenues 9,124 3,1_4 -- "- '• 24,000 106,509 82,909 ..____ 211128080 (2 12 000) Tate: revanua� 1,6}z,0a0 61,294 2 2 418,810 (U),717} 4 841.gl1 2 10 0 2 1 85) 5,135-In 1,421,92 €xpenditurast AdoW strative Supwt. _ -- -- Comounity serv;ces S 100970 10,961 y _ -- _ •_- -- -' -- Public safety 110,771 110,771 -- -- - -- .4191ways and street 21291 2,291 _- _ -- -- -- -- "- -- -- -- Drains and severs __ _ -' '" "" -• -- __ _, Park 9evelopment 20,000 Rslmlwisament agreements -- -- -' -- 2,952,273 1,212,453 1,739,926 Grants -- 972,527 453,0T0 519,457 ♦ , ,228 1 2 .961 0A . 59 ,732,909 .- -- Miscellaneous __ _- _- Total expenditures 114,032 12k.023 20,009 22t bS3.02f1 i 1 068 2 t28 , t 21 1 3:. 120 519,4S7 _ti_ ��..�� ,7 `:,95 .273 rl - I 29 r 9 CITY OF MKTIN97014 BEACH STATEMENT Ill Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - budget and Actual Year Ended June 30, 1991 Park Acquisitlol and Federal Revenue Shari Fedaral Manpower Cram Other Grants revitlopment Yar once Var I once Variance VarIanct favorable Favorable Favorable FavoreV e Excess (deficiency) of Bu t Actual (Unfavorable) Budget Actual. (Unfavorable) %ftt Actual (Unfavorable) B_ udget Actual (Unfavorable) revenut over expenditure 1,487,90 1,565,275 81,307 -- (34,260) (34.260) (119,250) 291,874 441,124 2,183i62i 209,471 0197411541 Other financing sources (uses) (1.6c),060) (i 6 2 ) (91,946) Excess (deficiency) of revenue and other sourcts over expenditure and other uses 11 0 2) 12 C'1) 10 6 ) - (34,260) Q!,V26%) 11 2 ) 2:1 4 491.124 2 1. 83.626 209,473 Fund balance at June 30, 1990 as previously reported 4291406 429,1106 (156,810) (156,010) 3.�3 31893 2,0146939 2,014,939 Cumulative effect of Chan" In accounting principle 124,032 124,032 _ 239,268 2:3,268 - Fund balance as adjusted �— June 39, 1980 553,436 SS3,438 -- (156,910) (156,01C) -- 3,8l3 31893 -- 21254,20i 21254,207 -- Equity transfers in (out) 4 4 ) (429.747) - (327,336) (327,336) Fund W ance at June 30, 1901 budgetary basis 440,406 -- (444,406) (156,>l!0) (iy1,070) (34,261) (115,357) (41,569) 73.736 4.437,933 2.463,679 (1,974,ISO Add encumbrances outstanding June 30, 1981 9,207 300,74; 011-74 Ma" 249,098 - Fund balance at June 3C, 1991 CAV basis 9,207 (440,406) 11 r ) •t e2 ) 134.260; l8S.3R 159.0 ZL2 4.68i,9 2,712,777 (1 4 1 ) Sea accompanying accountants, report. 30 i CITY OF HUNT1NiMN BEACH STATEKENT Ill Special Revenue Funds Combining Statement of Revenues, Fxpenditures and Changes In Fund Balance - Budget and Actual Year Ended June 30, 1981 Special Gas Tao Library Service Sswr Manned Lo:at Oralna�_ Variance liar ante ar ante 1refjanca Favorable 114vorable Favorable Favorable Bu t Actual (Unfavorable) Bu t Actual (Unfsrorabis) 11gftat Actual tUnfavorable) to at Actual [Unfavorable) Revenuest Licenses and permits $ -- -- -- 102,1" 73►023 (24,997) 128.010 639,814 519,014 450,000 509,005 $910' 5 Use of moray t property 300,000 273,523 (26,177) -- -- -- 250,090 335,004 85,004 250,000 221,535 ( AL;) Revenue from other agencIas 3,187,500 2,827,609 (353,851) -- -- -- -- -- -- __ __ Charges for current services -- -- -- -- -- -- -- -- -- -- -- -- Other revenues 822M -- -- - Total revenues 3,570,109 1j. 01.4.R 068 CV) 102,000 71,OU9 (28M7) 3?0,000 2Z4.$18 604,81a Z08.00O 730,540 30,560 Expenditures% Administrative -- -- -- -- -- -• -- Suppo►t -- -- -- -- •- -- -- -- --Coma unity services -- -• -- -- _- -- _- -- _- -- -- Public safety -- -- -- -- -- -- -- -- -- 1ligomys and street 11,319,792 2,972,142 8,347,650 -- -- -- -- -- - Oratna and sewers 12,848 -- 12,848 -- -- -- 1,460,553 734,165 726,3U 944,986 662,413 82,573 Part development -- -- -- -- -- -- -- _- -• -- -- -- Reimbursarnt agreements -- » -- -- -- •• 430 430 -- 10,320 -- 10,320 Grants -- -- -- -• -- -• -- -- -- -- Mlscelleneous Total expenditures 11,3)22640 2,972,142 8 6U 4 - 1 4G0 734-595 726-SM 5S:,306 "211#13 NAM 31 !I I I t CITY OF HUNTINGTOO 3EACff STATEHENIT III • Special Revenue Funds Cunbining Statement of Revenues, Expenditures and Changes In Fund Balance - budget and Actual Year Ended June 30, 1981 SoeclaI Gas Fax _ Library Service S oer Planned Local Drala _ War I anca er ones parlance ar ante Favor .ola ?"webie favorable BON-at Act FavtrMle wil (Onravorable) Bu t Acetyl (Ilnfavarablsl ludnet Actual Qftfavorabier Bu t Attu&) d3.� (W►favorab Is) , Excesz (deficiency) cf raven" over expenditure (7,7624531) 129,290 7,991,521 102,000 73,003 (29'"?) (1,091,91i} Othr financing sources 21t0,223 1,3}1,IGi (255,306) (131,873) 123,433 e (uses} (841,110011 t 09 lsl- 2 t102 000 ?3�003) Ie.9s7 -- Excess (deficiency) of revenue and other sources over expenditures and other uses 8 611 1 a I } $ O. b3,333 - _ i 1 ria.223 1.j3i� _J2�y�} (131,873) 1:3.�33 Fund balance at •June 30, 1983 as previously reported %69$,393 1,698,393 -- -- 2,5:3,879 2,523•a79 -- 1 1,5b1,711 Cumulative effect or ,541,711 -- change in accounting principle a 1,2o581,243 -- -- 52.11�i 4_ 310,169 _ 10 16 Fund balance as adjusted - !�' '- .tune 30, 1990 2 179,596 2,279,595 -- -- -- 2,S7i•21a 2$ 76,219 -- 1,851,894 1,951,881 Equity transfers In (out) -- '- and be 1 ante at June 10, 1991 (6,331,935) 1,7119398 9,041,333 1,415,236 2 @i6 budgetary basis -• -- r • 3 1,331,266 1,5%,574 1,770 007 123,433 Add encumbrances outstandtnq June 30, 1981 589•767 5H.767 9.265 34,265 71,763 _ 71,76; Fund balance at June 30, 19$1 CARP basis ${S,7b),1i11) 2+300,165 a a, b3,333 1'i 2 1,331,206 1 66Es337 1 i MO 123,433 See accompanying accountants' report. 32 CITY OF HUNTINGTO14 BEACH STATEAEHT It spe,,Ial Revenut Funds Conbining Statement of Re4enuas. Expenditures and Changes in Fund Bala;': - Budget and Actual Year Ended ?une 30, „8t Operational Reserve Fund S0e41e1 Calt41 0atlay 'fa2ai Mar an�ce Variance Variance Favorable Favorable saturable Buffet Actual (unfavorable) beet Actual :unfavorable) Budget Actual unfavorable Revenuest Licenses and permits -- -- -- -- -- 1,789,000 1,4",350 90,380 Use of money and property 42,47b 42,476 100,000 207,54[. 107,54 1433,200 1,841,445 268,245 Revenue from other agencies -- -- -- -- -- -- 119913,544 7,659,023 (4,295,521) Charges for current services -- -- -- -- -- -- 24,000 106,909 324,90 Other revenues - _ 21394,609 82126 �a6.01) Total revenues 42.06 42,476 100,6W 207,S46 107,E 4,424,353 11.173.1111 1`6 2 0 6 2} Expenditures: Adolnlstrative -- -- -- 13,4" 9073 3,673 13,446 911013 3.673 Support -- -- -- 114,09 76,810 39,079 114,us ;a.ti:0 38,07% Comunity services -- -- -- 553,741 445,1167 107,034 564,671 456,926 107,843 Public safety -- -- -- 1,564,E T,388,z" 112,579 1,611,633 i,499,060 112,579 Hlghways and street -- -- -- 1,29219" 1104083l3 252,416 12,S11I,et'2 4,014,62E 3,690,066 Oratns anc sewers -- -- -- 153.474 129,611 23,8" 2,571,661 1,726,1ED W,673 Park developm4nt -- -• -- -- 2,972,273 1,212,453 1,7559,820 Retabursewent agreeeents -- -- -- -- -- -- 101,750 430 10,320 Grants -- -- -- -- -- -- 5*933,595 2,651,224 3.252,366 hiscetlaneous 1,720,001 - 1_179C.000 54 33,704 20:i53 1,ii1w,35T 33,704 1,810,553 Total expnnlltures 11790,040 1,790,dOB 3 611MA 123, 4,446 SUM 28 t ! 11,711 61 16,551,072 33 e CITY OF W14TINCTOR DEAC14 STiITEI'IEMT 111 Special Revenue Funds Coabining Statement of Revenues, Expenditures and Changes in Fund Balance - Oudgct and Actual iF Year Ended June 30, 1981 Operatlonal Resfrva Fund Soec:at Castel 6ut1 variance Zotai ar area FavofaDte Favorable ver ante Budget Actual Unfavorablo. Qu et DCtuel �W,fa Mbl e} Favorebta Budget i liM+favwable) Excess (dafrctencr) of ravanuas ovtr cap enditure (1►790,000) 12,476 1,83:,476 {3,5�3•5��1) Other financing {2,116.980} 6ib,li# 110,.l28,020) (537,620) 10,290,600 sources (uses) - iWiMOD 1,453,500 1,532.000 1,424,961 •Si Excess (daficiency) of 2 _ y�o,aoaj 615,O04 I pS,004 revenges and other sources over expenditurst sources (uses) and other uses (1,790,600) 1,495,976 23, 95,976 {,a 1 , Fund balance at -- �' ( 1_ ?0} „ 77:- 4 11 92J.604 June 30, 1930 as pravlousiy reported -- -- Emulative effect of change S,0}p,736 9,090,736 In accounting principle -- Fund balance as adjusted — 6 BI 6 4t 1 I 1LSlj-11 June 30, lySO -- -- •- 1•ri90,02b 1,6>J►,a26 -- 11,036,6�9 II,OS5,D69 Equity transfers in (out) -- -- Fund ba:anca at ;Z -.—�sLL27,335y27,336y June 30, 1941 budgetary basis 0,790,000) 1,495,976 3.255,976 (:57+518) 931,834 i,189.352 Add e w acbrances MIMI) 10,806,697 11,S99,268 outstanding June an 1981 Fund balance at - June 30, 19181 GNIr basis SI1�.OhO) S1 ► s],2aS,976 S �i i!2 91 6 �s � 3�1 SI 12 0 8 sit_ .SIOs?b6 �11_�598,26f! See actampanying accountants' report. I 34 r CITY OF HUNTINCTOM BEACH STATEMENT IV Oeat Service Funds CambinIng Balance Sheet June 30, 1981 '955 Voter fond 1979 park fm. anterost and Interest and Bond Redrytlon lead lledwatica Total Assets Cash and term dsposits -- $411,892 Ah,8t2 Property taxes :eceivabla -- 27,191 27,191 i,iterest recel%,able 1,175 1,175 Total assets �j;■t6! 73,1 Liabilities and fund Balances Liabilities s -' fund balances Z).168 DAM Total liabilities and fund balances EZiba j3■10 See accompanying accountants' report. 35 i. . i t- --- t_-. i i-_A (-_._i ;__I L__S L._A L.A L`1 3 CITY 4F WoIT I MGTM BEACH STATEMERT V Debt Service Funds Combining Statement of Revenues, Expend;tures, and Cbangos In Fund valences Year Ended June 30, 1981 1355 Voter 1PA lark Bond interest load Interest and Iledtmot l on Fund -d Redyna t l on Fund Total Revenue!: General property taxes 3 514,217 5t4,217 Total revenues 214,21714 2l Expenditures: Ree,awtion of matured wads 35,000 195,000 230,000 Interest miscellaneous 350 271, �72,087 32 Total expenditures -'3S.3SO 46ILI2 502,J22 Excess (deficiency) of revenues over expenditures (35,354) 47,038 1'.,688 Fund balances at June 30, 1980 56,537 26,130 62,667 Equ!ty transfer in (out) (21,187) 21,18 Fund balances at .tune 30, 1481 3 7],168 7j. " See accompanying arca•rntents` recort. 36 i CITY OF MPITINRTGN 3EACN HATEMM V1 Debt Service funds Canbining Statement of Revenues, Expenditures, and Changes in Funa Balances - Budget and ictuat Year Ended .tune 30. t981 WS water Bond Interett t976 Park Bond tnterest and ite tlon Fund and Redemption fund Total .. varlince- Variance- Yariarce- Favorabie Favorable Favorable budOet Actual (Unfavorable} /fit Actual (Unfavorable) Budget Actual Unfavorable Revanuess General property taxes $ 2,428 5 -- $ (2,42a) S481,487 %14,217 $32030 $483,915 S514,217 $30,302 Total revenues 2,428 (2,428 481,4V klh.217 124M 433,9.1s 514,217 ,30= E.tpenditurest 4edemptlon of matured bonds 35,000 35,200 -- 195,010 195,000 -- 230,000 230,001 -- Interest 250 350 (100) 2719739 271,737 1 271,988 271,007 (99) Miscallane(us too - lob — 500 442 _ so- 600 _ 442 158 Total expenditures ,15,390 35.350 - 467,238 467,179 _ 59 502,588502,529 5 Excess (deficiency) of revenues over expenditures (j2.522) (.NJ3-0) (2.Aal 14,249 J,7.838 11z688 10,351 fund balances at .tune 30. 1980 56,537 56.537 -- 26,�30 26,133 -- 82,667 82.667 -- il Equity transfers in (out) 121,187) (21,197) (21,21) (21.i87) Fund balances at June 30, 19B1 523.611 S -- Stz}.61V : 40,313 SJ��,lba $3LM $ 63,444 S_Z,z,168 S 114 See accompanying accountants' report. 37 Tills "age left flank Intentlon&llr I 1 I i e CITY OF HUNTINGTON BEACH STATE11E11T V11 Enterprise Funds Canbining Balance Sheet June 30, 1981 Pater Meadowlark Utility Golf Course Total Assets Current assets: Cash and term deposits $ 4,796,590 105,555 4,90:,Ik5 Accounts receivable: Trade, net of $2,C00 allowance 337357 337,357 Other 15,050 F __ I i5,O5o Deposits 32,269 -- 32,269 Int!-est receivable 32,269 i,818 81,278 Total current assets 5,260,726 107,373 5,368'09r Property, plan;, and equipment, net of allowance for depreciation 74,096,761 3499,280 27,196,Chl Restricted assets - cash with fiscal agent 405,504 ;05,504 Total assets $29,7 62.94 1 Yob 6 2 Sae accompanying accountants' report. 38 CITY OF HUNTINGTON BEACH STATEMENT Y11 Enterprise Funds Combining Balance Sheet Jun- 30, 1981 Water 1leadoitl ark Utility Golf Course Total Liabilities and Fund Equity Current liabilities payable from current assets): Accounts payable 5 286,646 -- 286,546 Customer deposits 329,650 -- 329,650 Accrued interest payable -- 46,325 4E,325 Pccrued payroll 122,196 -- 12I,196 Due to other funds 537 -- 537 Current installment of long-term note payable 38,678 18,047 56,725 Current liabilities (payable from restricted assets): Current Installment of bonds payable 140,000 -- 140,000 Accrued interest payable 14,000 14,008 Total current liabilities 931007 64,372 .07 Long-term liabilities: - Long-term note payable net of current Installment 488,139 1,566,997 2,355,136 Bonds payable In future years net of current installment 1,626,000 1,626,000 Total liabilities 31245,846 1 i,9. 1,369 4,977.215 Fund equity: Contributed capital% In aid of construction 15,121,693 -- 15,121,693 From general Fund 92,608 1,267,324 1,352,532 Total contributed capital 15,214,301 1,267,324 16,481,625 Retained earnings: Reserved for the retirement of revenue bonds 251,504 -- 251,504 Unreserved/undesignated 11,251,3A0 7,960 11,259,300 Total retained earnings 11,502,844 71960 11,510■b04 Total fund equity 26,717,1115 11275,284 27 2 4 Total liabilities and fund equity $2 2 1 3,206164% 32,469,644 See accompanying accountant's report 39 CITY OF HUNTINGTON BEACH STATEMEKT Vill Enterprise Funds Combining Statement of Revenue, Expenses and Changes In Retelned Earnings Year Ended Jme 30, 19111 Uater Meadowlark Utility Fund Calf Course Total Operattra Revenues: Charges for current service $ 5,669,ti5 Il ,115 5.6E9se of money and property 170,3i2 9 Other operating revenues 145,018 -- 170,362 ,018 Total ape-sting revenues 5,F1�,1;; t71,3{2 5'V Operating expenses: Source of supply 1,078,819 i,Q7$,81g Pumping expense,later treatment 1430,123 :2,671 1,030,12; 371 Transmission and distribution 573,686 -- 532 Administrative and general t,065,331 -- 1,573,,,6671 696 Contributions to general fund in lieu of taxes 923,b67 Depreciation 768,E iS,7� g .667 Total operating expenses 5,473,076 1;,750 ;5 Operating income 3t,t,057 156,582 ;g5.639 Non-operating revenues (expenses): Interest Income WAD638,880 Other revenue 19ll,667 t9i;66] lalnosi expense 6 21i} (133,13;) 2 67 Total non-operating revenues (expenses): 757,336 (133,134) 6f>t,202 Mat Income s,0V,393 21,4ifj :,119,8�i Retained earnings (accumulated deficit) at June 30, 1980 10,354,504 I13,k8a} :0,381,ot6 Increase in reserve for retirement cf revenue bonds 9+147 � + Retained earnings at June 30, 1981 1,S02`44 il.$10,80♦ See aceaspanying accountants' report 40 I i i This Page Left Blank Intentionally i i CITY OF MINTINGTOM BEACH STATEMENT IX i . Enterprise Funds Combining Statement of Changes in Financial position Year Ended June 30, 1981 Water Meadow l ark Utylit� Coif Course Total of Working Capital: III Operottonst Net earnings Si,098,393 21,i►:a ;�tty,8�1 Item not requiring working capitalt Depreciation _•168,909 Working capital provided from operations 1,867,202 37,20a 1.90;,41a Increase In note parable 526,817 $26,817 Increase in reserve for revenue bond rettrenent 9,947 — 9,947 Total sources of working :apital 2 4G M 2 ;_ . 1,174 Uses of Vorking Capital% Addition of fixed assets 1,943,975 -- 1,�+I,975 Increase in rtstricted assets - cash with fiscal ag,2nts 14,018 _- 14.038 [reclassification of note payable 38,678 -- 38,678 keciass M cation and redoaption of long-term bonds payable 234,000 18,047 252,947 Total usas of working capital 2 230,691 1$,2k; 2.248 8 Not increase ;n working capital $ 173,275 t 161 192,11 I i i1 i I i CITY OF HU14TINGTON BEACH STATEMENT 1x En cr t prise Funds Combining Statement of Changes to Financial Position Year Ended June 30, 1981 Nate: Meadowlark Utillty Calf Course Total Changes in components of .corking capital: Increase (decrease, in current assetst Cash and long term deposits $221,211 18,524 239,735 Account receivable, trade (net) (7,1A3) (718113) Account receivable, other (net) 2,326 too 2,426 Interest receivable 14,448 1.718 16,166 Total 230,142 20.3�2 250.484 Decrease (increase) In current Liabilities% Accounts payable 116,192 -- 116,192 Customer deposits (34,370) -- MOMAccrued expenses (95,957) OM -- (95 Out to other funds (63) 3) Accrued interest payable 447 -_ (6(6T Matw ed interest payable S,462 -_ 5,%62 Increase In current portion of bands rayable (10,904) (10,000} Increase in current portion of reate payable 8 6 8 Totalj % tiltj (39,85g) .L�8667.) Net increase in working capital 5173.275 1],161 192,416 See atcoapanylng accountants' report. 42 i • CITY 9F HUNtik6TOK eEl!CH STATEMENT x internal Servic: Funds Combining WanLe Shut June 30, 1981 Public Employee Vorker's Liability Health Capensation Self-Insurance Self-Insurance Self-insurance Total Assets C-.sh and term deposits $2,241,626 416,833 2,261,809 14+"0+3'18 interest receivable 37,2Sb 6,463 36,676 80,605 Due from other funds --2 — 13,722 Total assets S2 2 a 2 k23,296 Liabilities and Fund Equity Liabilities: Accrued payroll989 9a9 Acco.n,ts payable 35 -- 18,2% 18,3;1 Insurance claims payable S76.742 �a1.116 T y01t 2 OOb i. Total liabilities �g 6� 2251,116 796.' Y 0, 26.19�C Fund Equity; Retained Earnings: Reserved for future insurance claims 750,900 -- -- 750,000 Unreserved 552,115 172,106 i b 2,219,279 Total fund QWI ty 1,302,115 1_72,190 1.RS3. 2 7 73 Total liabilities and fund equity S2 2 2 1M2 2 2 2 2 2� 6.�36,b7S See accompanying accoentants' report. 43 CITY OF HUNTIHFTOM BEACH STATCMEMT XI • Internal Service Funds Combining Statement of Revenues, Expenses and Changes In Retained Earnings For Year Ended .tune 30. 1981 Public Employ" Yorker's Liability Health Compensation Self-insurance Self-Insurance Self-Insurance Total Operatinp revenues: Charges for current .arvice S I►40,p00 0 161 lr Oi 1 11;k l Total operating ,evenues �00,p00 t61 O1 i B. 5i.176 Operating expenses: Worker's compensation claims Lmployee medical claims -- 784,008 -- 784:W Administrative and general -- 7�:92! 3i,02i 113,955 LlaLlllty claims 199,579 Other - - 5,774 Total operating. expenses 199,579 i162,737 695.855 1,758,171 I OFerating income (loss) 250,421 2Z.424 1201,8411) g6,00� Non operating reeanuss: Interest income 151,468 4,359 215,034 559,861 Met Income 501,899 140,783 13,194 65S.WA Retained earnings at June 20, 1980 800,226 -Xi-in 1,498,7390 2,312,413 Retained earnings at June 30, 1981 S 02 11 See accompenring accountants' report. �14 I CITY of Mil INSTON $EJICN STATEHf.+T XI I Internal Service Funds Canbining Statement of Changes in financial Position Year Ended June 30, 19e1 Public Employee Yorker's Liability health Cempensation Self-insurance Self-insurance Self-Insurance Total Sources of working capital% Current operations, Net Income $5 WM_ 14D+7f3 13,silk 6 566 Increase in working cepitat ; 01 lkwull 1 1 655,�fi6 Change-. in caapoionts of working capital: Increase (decrees) in current assets: Cash and term deposits $432,650 193,326 225,35S 841,331 Interest receivable 37,266 5,063 (S6,501) (14,172) out from other funds 964 - 63, Total increase in current assats 469,916 165.389 169,818 929,123 Decrease (increase) In current liabilities% Accrued payroll -- 96 96 Accounts payable (35) -- (1,736) (1,771) Insurance claims payable 32,00E �6, (15i.9i1i} (1 0 2} Total decrease (increase) in current liabilia:n 31,973 (47.6% Increase in worki;.g -r itai S 05 1,8L3 160,76� 1 1 655,566 See accompanying accountants' report. i5 I CITY LW W MTIMGTOM BEACH STMEMENT $111 Expendable Trust Funds Caabining balance Sheet Jim 30, 1541 loyee M110 Special Warred Improvewent Interest- Deposit Caepeasation Act Subsidy Total 1 ASSETS Cash and teem deposits 3170,169 1,D•2,4�7 21,612 2,S,1i7 1,462,475 Notes receivable, net of unearned discount 872,267 - -- 97_ 2,267 Total assets $mt.U6 1,884,764 21 - 2 258,117 2 4 ?42 LIABILITIES AID FUNO BALAmCE Liabllitiest Refundable depvslts $170,169 -- -- 170,169 Bond principal and '- interest payable 0eferred revenu► 32.843 21-692 -- 21,692 32,843 Total liabilities 170,169 32,943 21,692 -- 224,704 Fund Balances: Unresarved-undesignsted: I B 1 21 258,117 2,110,039 Total liabilities and fund balances Si 0 i 1 884 " jjLq2 2,334,742 See accompanying accountants` report. I ;6 I CITY OF HUNTINGrON QEACY. UATEMENT XIV Expendable Trust Funds Combining Stateam,t of Revenues, Expenditures and changes In Fund Balances Year Ended June 301 1991 Employee 11tli1 Special Warred imp rowimunt I nt a rest- ' Qeposit C2!=9atlon Act S_ubsidy, Total Revtnvest Contributions Interest 12 1 262,95% Total revenues - 507 M) - 12,371 •;2111,E04 Expenditures: Loan subsidies -- -- -- 104,7514 10R,75; Paid to participants in employee deferred coapensat}on plan 13,1" Total expanditur" 113,1116 1 � i 111 Excess (deficiency) of revenue over expenditures Fund balances at June 30, 1980 -- 1,357,174 -- -- 1,3U.M Equity transfers in (out) -- - 3350,08 3SP-000 Fund balances at June 30, 1981 Sae accompanying accountants' report. 47 1 Statistical Section !- --1 l • SC4EDULE i STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES Last Ten Fiscal Years Ilse of From Charges Fiscal Other Licenses i Fines i Money i Other !ar Currant Other Year ?axes kra►lts Forfeltures Property m:as Services Revenue 1972 S 3,115,977 $1,269,522 S 109,851 S 596,957 $1,373,14 S 419,013 S 59,200 1973 3,800,7:8 1,997,105 126,651 651,746 1,589,762 701760 112,172 2 f 1974 4,386,433 1,834,580 152,769 692,395 118301265 615079 32,325 1975 5,723,995 2,236,292 125,698 767,233 1,77;91+32 63999b6 41,627 1976 5,722,103 2688,932 135,216 307,470 2,560,207 825,912 49,277 1977 1978 ,785,656 2,817,209 214,805 1,050,238 2,567,992 942,760 68.71t 7,953,048 2,653,129 216,362 1,415,212 3,076,250 938,182 99,600 1979 12,825,591 21485,540 224,026 1,814,115 5,502,E 181 1 • . + � 58t,7o9 34,458 80 4,557,330 2,S97,90 39Z,877 1,020,700 3,67;,763 1,129at '�6a72 , +g s� 12 48 SCHEINILE i i STATEMENT OF 4ENEIIAL FUND EXPENDITURES Last Tan Fiscal Years Fiscal Administrative CoaRnmity Public Safety Support Total Year Services Services _Services Services Caneral Fund 1972 $1,676,714 $ 41736,`50 $ 6,966,2,'7 S 724,723 $14,104,264 1973 1330.792 5,978.:71 3,499,612 720,979 4,519,654 1974 1:494,073 6,EDI,07S 9,541,847 906,900 18443.e95 1975 2,802,270 6,977,233 10,858.325 813,411 21,4S1,239 1976 3.194,089 6.653,560 12,233,405 1,247,564 li,32b,616 1977 2,664,473 14,747,53S 14,074,326 2,493,344 26.979,687 1970 3,635,719 8,673►505 14,953,652 1,814,454 29,0779330 1979 3,594.195 7,786.972 16,705,463 2075,756 32,4",396 1980 6,723,175 11,387,668 16.739►792 2,001,019 36,901,644 1981 c Oa, l.t9t 11,784,054 18 16 4.T42, 44 W.4 1�i 393 � 1 i 49 1 ` .- � c� r • SCHEDULE III I STATEMENT OF ASSESSED VALUE, BEAT LIMIT AND RATIO OF GENERAL OBLIGATION OCKED DEBT To ASSESSED VALUE AND PER CAPITA Last Ten Fiscal Years - x t Bonded Debt to - Fiscal Estimated Total Legal Debt total General Legal Assessed bonded Debt Year 82eulation assessed Value Limit-A1511 Bonded Debt Debt Mrrgin Value Per Caalta 1972 1291992 a370,230,779 S 55,534,617 5 6,094,000 q 49,444,617 1.64 46.85 1973 143,325 410,283,199 61,542,460 5,930,000 55,612,480 1.45 41.37 1974 143,636 442,271.658 56,346,749 5,76S,000 60,57S,749 1.30 40.14 d 1975 146,400 529,973,310 79,495,997 5,590,000 73,905,997 1.05 38.18 1976 151,500 580,623,450 87,093,S1$ S,410,000 81,683,S18 .93 33-71 r 1977 157,800 710,079,235 106.511,885 5,220,020 101,?91,I385 .74 33.08 1978 161,2013 854,321,745 128,148,262 5.020,000 123,128,262 .59 31.14 1579 t67,500 831,783,620 124.767,543 4,810,000 119,957 MS .5C 28,72 1980 172,200 983,927,670 147,599,151 4,590,000 142,995,151 .46 26.66 _ t981 _8 1,074,304.701 151,145.7o¢ 4,g60.000 156,785,705 .fit I .2 _ — �=r F' � •y,��' fir'.-" SCHEDULE IV STATEMENT OF TAX OELINQUEPCIES AOD WOUNDS Last Tao Fiscal Years ��_ SECUIED ;AXES UNSECURED TAXES Fiscal Tax Totai Total Delinquency Total Total 0eIInquency 4'r Year Rate Levy Collections Amount Percent Levy Collections I,%ount Percent laaounds 1972 S 1.62 15,S65,713 $5,395,W S 59,651 1.07% 032,025 $ 401,297 S 4,628 1.07; S 136,322 1973 1.62 6,249,372 6,094,111 51,276 .62 357,216 391,186 6,030 1.51 13C,985 1074 1.62 6,703,620 C,49g,Jog A6,654 .59 461,181 456,296 4,P95 1.06 137,557 1y15 1.62 8,099,022 7,844,596 74,987 .93 486,545 484,124 ii,i69 2.30 179,439 - 1976 1.62 8,852,049 8.587,784 82,622 .93 545,344 516,539 28,798 4.36 186,648 ` 1977 1.62 9,982,983 9,844,45, 116,794 1.17 549 494 538,370 6,791 1.23 328,451 1978 1.55 12,563,144 12,336,834 186,310 1.49 742,053 711,519 30,534 4.11 204,883 ? 179 .1972 5,635,879 5,525,120 110,759 1.97 561,420 537,307 24,113 4.30 195,202 1.180 .1972 8,842,899 9,602,751 240,148 2.72 861,976 839,468 22,508 2.61 2,562 1581 _ 18 10,224,680 87z.4 5�184 3_0 8'7.138 789,078 38,090 1+.60 28=585 T• G ty 1 va-'4y, • SCHEDULE V STATEMENT OF FUTURE GEWAAL OBLIGATION DONDED DENT REQUIREPIENTS BY YEAR BASED ON BONDED DEBT ,)'SKE 30L i9ai Fiscal Year Principal interest Total 1982 S 210,000 S 250,525 $ h70,52S 1983 220,000 248,450 468,450 1984 235,000 235,800 470,600 1985 245,000 221,700 4",700 1986 2611,000 207,000 467,000 1987 280,1300 191,400 471,400 :988 295,000 174,660 46q,600 1989 310,000 156,900 456,gD0 1990 330,000 138,300 468,300 1991 468,580 1992 17,0++0 97,590 467,S90 1993 355,000 75,300 470,300 ` 1994 415,000 51,600 466,608 4!` 1595 445,000 26,700 47?.700 ! Total SAJ-60-000 An Sfi 4 27 i 52 r SCIIEJVLE VI STATEMENT OF FUTURE WCER REVINUE S M. REQUIREME14TS BY YEAR PSED OK OUTSTAXDIWG OEDT JUKE 30, !981 Fiscal Year Principal Interest Total 1982 S 140,060 S 62,k;5 $ 202,435 1933 145,003 57,590 202,590 1984 150,008 52,508 202,500 19@5 160,000 47,0?5 207,075 1986 160,000 41,475 201,475 11187 1 0 9 7 ,000 35,700 205,704 1583 160,000 29,575 209,575 109 180,000 23,275 203,275 1590 190,000 16;580 206,800 1991 200,000 51975 209,975 1992 91,050 :sue 239 Total y L - a $2,145,638 i E 53 z SCHEDULE VIt HUNTIN rOR BEACH MALIC FACILITIES CORPORRPOR (+� STA7Dtc-Vr OF BONDED OUT JUNE 30, 1931 Qat_ Years �.-:e Bonds Bonds fonds of of of Original Outstandln Maturad lutstending Description Bonds Maturity Interest Issue July I. 19L Ourina Year Juna 30, 101 Civic Center Jan., 1972 1975-1982 7.00% $ 2.010,000 600,000 290,000 310,000 Leasehold 19P 5.70 330,000 330,000 6 330,000 tiortgagc Bonds, 1984-1990 5.50 7,040,000 5,9a5,600 a 6,935,I)00 rirst 1s;ue 1997-1998 5.00 1,720,000 1,595,000 0 1,525,404 Total 11,1_092000 9,510,000 22D.000 9,Y20.000 Central library Feb., 1972 1975-1993 7.00: 1,220,005 620,000 140,000 480,000 Leasehold 198h 5.90 18:,000 180,000 0 180,440 Mortgage hands 1985 5.40 150,000 190,000 0 190,000 Second Issue 1086-1988 r.50 640,000 WO,OOO 0 640,040 19$9-1991 i.62 770,600 770,000 0 770,DDO 1992 5.70 290,084 290,000 0 290,000 1993-19% 5.75 965,000 965,000 0 965,040 19%-1997 5.00 745,009 741,000 0 745,000 Total 5,000,COO 41400,000 140,000 4,210,000 Total bonded debt 81S,100,000 $1-, 14.000 S 6_ 30,000 S1L. 0,000 (a) Tke above schedule nas been Included for informational purposes only. The Huntington leach Public Facilities Corporation Is an Independent entity. 1lccordingly, the obligations of the public Facilities Corporation do nat const:tita an obligation of the City. 54 i SCHEDULE VIII • NPNTINGTON BLACH PUBLIC FACILITIES CORPORATION STATEMENT OF :UTURE DEBT REQUIREMENTS BY YEAR j BASED ON BONDED DEBT (a) !I JUNE 30, 19B1 Fiscal Civic Center Issue Library Issue Total Year Principal Interest Total Principal Interest Total Princiowi Interest Tntai 1982 S rz-'000 S 504,435 S 814,435 159,000 S 236,817 $ 386,617 $ 460,000 S 741,252 5 1,201,252 1983 330,000 482,735 812,735 160,000 225,967 385,967 49o,000 708,702 1,198,702 1984 360,000 463,925 823,925 170,000 214,417 384,417 530,000 678,342 1,208,342 1985 380,000 444125 824,125 180,000 203,157 MOW W 560400 647,282 1,207,:82 1986 400,000 423:225 823,225 190,000 192,7l? 382,717 590,000 615,942 1,2n5,942 1987 430,000 401,225 831,2I5 290,060 182,087 382,08-1 630,000 583,312 1,213,312 1988 450,000 377,515 827,575 210,000 170,812 380,812 660,000 548,387 1,208„87 1909 465,000 352,325 817,825 230,000 158,712 388,712 695,000 511,537 1,206,537 1953 530,000 327,250 857,250 240,000 145,667 385,667 770,0110 472,917 1,242,91) 1991 555,000 298.100 853,100 260,000 131,667 391,667 815,000 429,7,17 ',244,767 1992 600,000 267,575 867,575 270,000 116,827 386,827 870,000 384,402 1,254.402 1993 64U,009 234,575 674,575 290,000 101,002 391,002 930,On 33S,577 1,265.577 1954 675,000 199,375 874,315 305,000 33,968 388,968 980,000 283,343 1,26393L3 193S 725,000 162,250 887►250 320,000 66,000 386,000 1,045,000 220,250 1,273,250 1996 775,000 122,375 897,375 340,000 47,025 387,025 1,115,000 169,400 1,284,400 1997 830,000 79,750 909,75a 360,000 28,250 398,:50 1,190,000 108,000 ;,298,000 1998 765,000 38,250 503,250 05,000 9,625 39h.625 1,150,000 47,875 1,197,875 Total $9,220,000 $5,179,570 $14.3991S70 $4,260,008 S2.31_ 4.717 $6 57. 4,717 $13,480,000 $7 4i 94,287 $20,974,287 Principal Due: January September Interest Out: July and January September and March (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporation Is an independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. 55 SCHCLULE IX PARKING AUTHORITY OF THE CITY OF WNTINGTON BEACH STATEMENT OF BONDED DEBT (a) JUNE 30, 1981 Date Years Rate Bonds Bonds Bonds of of of Original Outstanding Matured Outstanding Description Bonds Maturity Interest Issue July Ig80 During Year tune 30i 1581 1968 Parking Sept., 1958 1970-1972 6.00% $ 150,000 S 0 $ O S 0 Ravenue Bonds 1973-1979 4.75 470,900 0 0 0 1980-1985 5.00 570,000 570,000 85,000 485,000 1986-1993 5.25 1,110,000 1,110,400 0 1,110,000 Total $2,300,000 $1,690,003 $a,-92 $1,59�440 SCFEDUi.E X PARKING AUTHORITY OF THE CITY OF MINTINGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR 3ASED ON BONDED DEBT (a) JUNE 30, 1981 Fiscal Yemr Principal Interest Total 1982 $ 85,300 $ 8C,400 S 165,400 1983 90,000 76,025 166,025 1584 95,000 71,400 166,400 1985 105,000 66,40o 171,400 1986 110,006 61,025 171,025 19B7 115,000 55,256 170,256 1988 .120,000 149,088 169,088 1989 125,000 42,656 167,656 1990 135,000 35,831 170,831 1991 140,000 28,613 168,613 1992 150,000 21,000 171,000 1993 160,600 12,863 172,863 1994 165,090 4,331 169,311 Total 5i.595,a0o $604,889 S2,199,88s .a) The above 5chedeles have been included herein for Informational purposes only. The Parking Authority Is an indeper< ..it ent .t. Accordingly, Its obligations are not obligations to the City. 56 SCHEDULE X 1 City of Huntington Beach Miscellaneous Statistics June 30, 1981 Date of incorporation 1909 'orm of government Charter City - Council - City Administrator Area 28 square mi1es Population 172,000 Hiles of streets 362.E miles Humber of street lights 12,190 fire Protection: Number of stations 7 Number of firemen and officers 130 Police protection: Number of stations 1 Number cf policemen and officers 190 t ?Immicipal water department% Number of consumers 44,036 i Average daily consumption 24.9 million gal. Miles of water mains 423 Sewers: Sanitary sewers '50 miles i Storm sewers 30 miles Building permits is}ued 3,230 per year Recreation and Culture: Number of parks 51 Number of people using parks 670,000 Acres of beach 43.3 Humber of people using beaches 3.9 million Number of libraries ; Number of volumes 370,153 Total library circulation 796,695 Number of people usi:rj libraries 85,424 Employes 1,250 57 E w 919 S Huntington Beach Public Facilities Corporation i Financial Statements June 30, 1981 (With Accountants' Report Whereon) CeniNd Public Accountants 44M MacArthur Boulewmd. 1PtaLt,Marwjck,M1tdx1&Ca Newport Reach,Ciidmnia 92AW (714)SSI.2000 The Honorable Board s: 0irectora Huntington Bean Public Facilities Corporation Huntington B,:aca, California Ne have examined the ew bined balance sheet of the Huntington Beach Public Facilities Corporation as of June 30, 1981 and the related combined � statement of earning: and retained earnings and changes in financial position for the year then ended. Our evamiration was made in accordance ' with generally accepted auditing standards and, accordingly, 1+tcluded such tests of the accounting records anti such other auditing procedures as we considered necessary in the circumsta •:es. to cur opinion, the aforementioned combined financial s!atemcnts present.fairly the financial position of the 1luntiogton Beach Public Facilities Corporation at ,tune 30, 1981 and the results of Its operations and the changes in Its financial position for the year they, ended in conformity vrlti 2eneraily accepted accounting principles applitd on a basis contlstent with that of the preceding year. CA.J September 25, 1981 EXHIBIT 1 ' HUNTINGTON BEACH PUBLIC FACILITIES CORFOMTi11N COMBIFED BALANCE SHEET Juror 30, 1981 Civic total Center Project Library Project Assets Restricted assets: Time certificates of deposit $ 1,998,854 604,910 493,944 T"urary investments in U.S. goverment securities, at cost (market: $1,998,060) 2,016,420 '.9537,229 471,191 Accruer! interest receivable 111,196 75,25) 35443 Total restricted Lssets 3,226.470 2,217,392 1,009.078 Long term leases receivable less unearned Income of $ 9,175,OS4 (Mote 3) 12,141,24E 8.28LM 3,851,707 Total assets $15,367216 $10,50 '"1 $4,860,7q Liabilitiez and Retained Earnin s Current Ilsbl itles payable from restricted assets: Accrued interest S 316,117 236,647 79,520 Current Installment of bonds payable (Rote 4) 460,000 310,006 150400 Total current liabilities payable from restricted assets 761,167 546.647 229,520 +eferred rental income 72,5f2 72,502 donds payable, net or current Installment (Mote 4) 48-20201r0 8.21D,000 4.110,On0 Total liabilities 13,869,669 9,S29,149 4,339.52P Retained earnings 1,499,047 977,782 521,265 Total liabilities and retained earnings $15,367,716 1i1,5C6,931 4,860,785 See accompanying notes to combined financial st_:ements. 1 1 ' EXHIBIT li WNTINGTOK BEACH PUBLIC FACILITIES CORPGRATION CON INED STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1981 Civic Total Center Project Library Protezt Operating revenue: Lease Income: Lease payments received $1,253,900 $854,900 $399,000 Leis amortisation of leases receivable 0-3,160) 221 1 1) (101,969) 9.0,7 0 33,7 9 297,031 ) Operating expenses: (7,263) - (7,263) Net operatinr_- rnca•e 923,477 633,709 269,768 Non-operating revenje: Interest earned �29,216 211,330 117,886 Total operating and non-operating income 1,252.693 845,039 407,654 Non-operating expenses: interest expense _ 9) 21 6 0) (246,355) Net earnings 484,644 323,345 161,299 Retained earnings at July 1, 1380 I,Olh,hC3 654,437 359,966 Retained earnings at June 30, 1981 St.4 O4 $977.7$2 5521,2b5 See accompanying notes tc combined financial statements. • EXHIBIT III MUNTINCTON BEACH PUBLIC FACILITIES CORPORATIOK COMBINED STATEMENT OF CWW6ES IN FINAK 1AiL POSITION YEAR ENDED .TUNE 30, 1981 i Civic Total Center Project Library Project 1 Source of fundst Funds provided from operationst Yet earnings $484,644 $323 045 $161,299 Amortization of leases receivable 23,!60 221,191 101,969 S8_o)��k S4y,536 526 268 Use of fundst Reclassification and redemption of bond's parable $460,000 $310,000 5150.000 Decrease in deferred rental Incoeo 41027 4,027 -- Increase In working capital 343,777 230 5509, 11),268 seo SO4 S544,536 sz63,268 - I Ch mQes in components of working cepitalt Increase (decrease) in restricted assetst Cash held by trustee S (32I s (32) -- Tine certificates of deposit (1Q3,53d) (201,178) 951640 Temporary investments In governmrent securities 411,809 403,298 6,511 Accrued interest receivable 54,916 44,227 10,669 Interproject balances (S.815) 5,815 161,155240,500 120,655 Decrease (increase) in currer► Ilabilitiest Accrued Interest payable 12,622 10,009 2,613 Current Installment of bands payable (31,000 (20,000 (10,000) 17 •8) ?1) ] 3V I'I Increase In working capital S343 7 S2 0 0 Sit 26Fj See accompanying notes to combinvd financial stateasents. 3 I WNTIM6TOP #EACH PUBLIC FACILITIES CORPORATION MOTES TJ COMBINED FIX WC1AL STATIRNTS JUNE 30, 1941 i (1) Su wwy of Significant Aeeoantins Policies 1 The following is a suenary of significant accounting polieles used by the Huntington #each Pubiic Fecillties Corperatlon (Corporatitn). i Basis of Accounting The a•cempanying combined financial statew is of the Corforetion have been prepared using the accrual basis of accounting, Tesporary Investments Investments are stated at cost. Such investments consist of Federi.l Carernment backed securities and are adjusted fcr amortization �. purchase premluw or discount. funds Under the provisions of the bond indexure agreearanta, the Corporatlon Is required to maintain separate accountability for various types of fund+ received. A description of thaw funds, ahlch are combined for financial statwwnt presentation, is as folloys: Accoent Source Use Reserve fund Bond proceeds ant rental revenue fund Sand principal and Interest Construction Fund fond proco"s Cost of project Interest During Construction Fund Bond proceeds First ts,enty-six months' interest on tongs Mental Revenue fund City of Huntington Beach rent payments Requ'.red transfers to varia-is funds and/or other specified purposes Debt Servico fund Trans-tars From revenue fund fond principal and interest. Ami►,l:trative Expenses 'et" Transfers from revee„» fund Corr-oratlon c,>eratlny expense-Bond Reetemption Fund Transfers from revenue fund Call ant' redemption of bonds, changes, alterations or edditlao% to the project, or rel=bcrseatnt of any base rent ar additional rent previously paid by the City of Huntington Reach 4 (1) iu.Mary of Significant Accounting Polities, Continued Upon completing construction, separate rental revenue funds were etta31ished to account for ail lease and other revenue from the City or Huntington Beach for the Civic Center and Library. The separate construction funds for the Civi_ Center and L14rarI projects continue to account for Improvisscnts end modifications to the project structures as aprroved by the Directors of the Corporation. Honey in the respective rental revenue funds Is disbursed as toitowst Flo— to the debt rervics funds in asiwtts sufficient to pay one succeeding prin_tpsl and two succeeding Interest installments; Se:ond, to rest>ective rpaerve fun-Is in armounts r.acassary to restore a balance equal to one year's lease revenual Third, to the administrative exFense funds in arnou,tts :.,cal to the hudgited adalnistrativo expenses of the Corporation; Fourth, to :l-e bond raderaptlon funds. Honey In the bond redemption fund Is used to correct deflclancies In the debt service funds, reserve funds or administrative expense funds. Money reins ring Oter rwating the minimum requirements of the bend agreements may, ae ussd to purchase or redeem outstanding bonds In order to r..ske r srovemeits or to reimburse the City of HLAtington lurch for rent paid to the Corporation. (2) atomization The Huntington Beach Public Facillties Corporations was incorporated under the laws of the State of Caitfornia as a non-profit corporation on November 23, 1970. The Corporation was formed for tee prirary purpose of financing and constructing a civic center._omplax and central library for the City of Huntington Beach. The constructed civic fi,ciiitles have been leased to the City of Ituntingtoo Beach under tong term lease agreements. (Note 3). (3) Leases II The Corporation has entered ln:o two lease and sublease agreements with the City of Huntington :each. The tacrosa of the leases are as foltatst (a) ClA c Center tease - This involves a lease and sublease agreowent Keith the City of Huntington Beach `or the Huntington beach Civic Center. The site occupied by the Civic Center Is awned by the Cit1 and was leased to the Corporation for an advance rental of S350,000. Tim terra of the 1rese is from January IS* 1972 to one welt after the termination of the sublease destribea to the next paragraph. The Corporation has subleased the CI-sic Center site and civic buildings constructed thereon to the City for to annual rental of $3549900. This sublease commenced July 1, 1974 and Rxtends for a ter+e of the earlier oft (a) thirty years jr (b) until the bonded Indebtedness incurred by the Corporation to construct the Civic Canter has been paid. N) Central Library +ease - This involves a lease and sublease agreaR nt with the City of Huntington Reach for the Central Library. The site occupied by the Central Library is owned by the City a,sd was leased to the Corporation for an advance rents! of $300,000. The tent, of the lease is from September 1, 1972 to one w-tx after the termination of the sublease described an the next paragraph. I 5 i (3) Lease%,_Continued The Corpvration has subleasad the Centrai Library site and buiidinC ccnstrur-ted thereon to the City for an annual rental of S399,000 This subleasa cuevenced Feb-uary 15. 1975 and extends for a term cf the earlier oft (a) thirty yeers or (b) until the handed lndebtedncss incurred by the Corporation to construct the Central Library has been paid. Under both 49re".ments, the City is required to pay all tans, insurance, admI nlstrative and mairtanance costs associated with the leased facilities. At the cancluslon of the lease agreements, title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such leases be treated as financing leases. Under the fl-isncing methoe, the a:.cess of aggregate rentals over the cost of the leased property is considered compensation to the lessor for the use of funds Invested. At June 10, 1981, leases receivable from the City of Huntington ileach for the Civic Canter and Central Library facilities tolai s12,141,2a6, net of unearned intone. The site advances are included in the long terra leases receivable and are sffmrtized over the rerm of the teases. (4) Long-Term Debt A sumary of the Corporatlon'i bonded indebtedness as of June 30. 1981 is as ►oliaes. Nturltles oat* Interest Original Outstandlng Annual erred Bond issue is?uo rates issue J.u�e 10, 19B1 raq,•Iramants covered Civic Center: Leasehold Mortr Bonds, Varying ammunts from First Issue (a) January, 1912 5-CO - 7.001 $11,100,005 $9,220,000 $200,000 to $890,000 1975-1988 Central Libraryt Leasehold MortMe Bonds, Varying amounts from Second Issue (b) September, 1972 5.00 - 7.00% 51000,000 4,260,000 $165,C09 to 5385,noC 1975-1997 S16,t00,000 13,480,000 (a) The $11,100,000 principal amount of Leasehold Mortgage Drinds, First issue (Bonds) are dated January 15, 1972 and were issued as coupon bonds in 15,00C dsnovminations. These serlai bonds mature annually an January 15. interest is payable seal-annually on January 15 and July 15. Bonds maturing on or prior to January 15. 1982 are jAnerally not subject to tali and redemption prior to their linai maturity date. Bonds maturing on or after January 15, 1953 (a prin:l,al emount of $9,090,000) are subject to call and redemption at the optlor. of the Corporatlon, In total or in part, on January 15, 1982 or or, any Interest payment date thereafter. Call price of the bonds shalt be an anraunt equal to the principal amount plus _ pi•ealto equal to 1/4 of I percent of the principal amount redeemed, plus 114 of t percent for each year or fraction o! a war !ram the redemption data to the maturity date of the bonds. In no event shall the pre+mlum onceed 4-1/2 percent. 6 1 (4) Long-Tana Debt. Continued (b) The $5,000,000 principal. amount of Leasehold :.ortgags bonds, Second lsuw (Sonds) are dated September 1, 1972 and were Issued a. coupon fronds In 55,000 denaeinations. These sei-iat bonds mature annually on Septswbor 1. Interest is payable salmi-annually on March 1 and Septemlrsr 1. bonds maturing as or prior to September Is 1982 are "nerally mat subject to call and redemption prior to tholr fixed maturity � date. bonds maturing an or after September 1, 1983 (e principal amount of $3,350,150) are subjast to call and redeeptlon at the option of the Corporation, In total or in part, on September 1, 1942 o* on any interest payment date thereafter. pail pr'_a of the Bonds shall be an amount ecuat to the principal amount rede6med plus a premium aQv-0 to I/4 of i percent of the principal mount redeem.-d, plus 1/4 of 1 peicant for each year or fraction of a year from the reditgt on date to the maturity date of the bonds. In no event shall the premium exceed 4 percent. A Parking Authority Of The City Of Huntington Bead. Financial Statements June 30, 1981 and 198 (With Accountants� Report 'Whereon) E Cettritl Public AccounWts 1 "MM=A9thw Boukvatd 1i R4MarWk*-M1'd1d1&CQL sera beed;,C&VomiaVoo (TIQ a:M The Honortble iterbers of the Parking Authority City of ttuntin;:cn Beach Huntic:gton Beach, California We have examined the balance sAeets of the parking Authority of tho City of hun+ingtoa Besch as of June 30, 1981 and 1940. and :he related scatttaents of *!arningt and re;aired earnings and ch;,itges in financial position for the yeerx then ended. Our examinations were made in accurdanct with generally accepted auditing. standards •nd, accordingly, Included such tests of the #=—counting records and such ether auditing prockdures as .ot considerad necessary In the ctrcumstsnces. In our opinion, the aforementined financiat statownts present fairly the financial position of the parking Authority of the City of Huntington Beach a: June 30, 1981 and 1980, and tl* results o7 its operations and the changes in :ts financial position for the years then ended, in conformity with gsneraily accepted accounting principles applied an a coi:slstent basis. Septt-Aber :j, 1981 I EXHIBIT 1 ?ARKINZ AUTHORITY OF Tll'c CITY OF NUYTIH6TOH BEACH BALANCE SHEETS ZUNE 30, 1981 and 1980 Assets: F48i i 0 Current assets: Crsh an-' .aria ee;--site S 153,�3 S ik9.09; Receivables: Out From general fund 2,03! 871 Accrued interest receivable S6,273 J0,659 Total receivables Sd,?07 31.530 Total cur , assets 222,170 160,624 Restricted assets? Investments. at cost which approximates market (Note 3) 70,255 690,555 Cash with fiscal agent 7 Mh I.I56 Total restricted assets 771,849 691.711 Fired assotn, at colt: Lend 37t06S 371,065 Inprovemsnts 1,694:089 1,694,089 Less allowance for citpreciaticn -(4.1l (750,765) Total fixed assets, net 11243,195 i,31l,380 Total assets S2,2 7,21! i2.186,72ti Liabilities and Retained Earningst Current-ilabFfrtW : Azrrue3 interest payable S 271508 S 2$,925 Current installment of bonds payable (note 3) 85,01b 35,0d0 K*t ur2d interest payable rrom restrlcteC ascats 7,5941. Total current liabilities 120,102 115,081 Bonds sayable. t or current W I.alimt t (Hot% 3) 1,510,900 .,595 00 Total li&bllltie: 1,630,102 1,710,081 Retained earnings 6m ii2 476�641 ITotal liabilities and retained earnings2t2`7,z1! I �`:t��{{; � S�:• t!+ ri'+at:: t1 Li['!*tR23, i I I I PARKING AUTHOR.:':—. isF T11E Clii OF HUNTIMGTOH BEACH STATEME91S OF EARNINGS AND RETAINED EMHiNGS YEARS EMOED MH 10, :581 and 1980 1�81 __19dQ_ Operating revenue: Rentals (:tote 2) S {70.050 170,050 Operdting expenses: Depreciation 72,064 Het operating 1ncawt yo,o;6 97086 Mon-operating revenue: Interest earnee �16,867 _ 59,257 Total operating ead non-opera:fng incooe 213,703 186,443 Mon-operating: expenses: Interest expense 83,234 87,521 Het earnings 130,469 98,922 Retained earnings, beginning of year ge..643 377,721 Retained earnings, end of year S 607.112 3 {70,043 See eccomy_nying note! to financial statements. i EXHIBIT iil PAW NG AUlriuntV OF THE CITY OF HUNTINCTON BEACH STATEMENTS OF CHUGES iw r1tW4CIAL M317104 YEARS ENDEO .TUNE 30. 1581 and 1980 1 i 0 Sources of working capitait Net earnings Si3a,�69 S 98,922 Itm. which does not use working caprtalt Oepreciation of land improvements i1,19R 72,116k 00 1:b63 5171.L86 Uses of working capita% Current installment of bonds payable j 85,000 $ a5,000 inc(taie in restricted assets 8:,138 S3,626 Increase In working capital 306.525 31,160 201 E6 $l 1 86 Changts In caoponents of working capital: Increase (decrease) in current assets: Cash and terra deposits = 1h,769 3 11,591 Receivables 26.777 20,03 ;1_SiEs 626 Decrease (lncreatu) In current llabllitlest Accrued Interest payable 1,07 1,153 Matured interest payable (6,08) 5,361 Current installment of bonds payable 000 (51V1} W1 increase in wor7.:ag capital 5 3{�:S25_ S 13,160 See ac_oapa^.yang notes to financlal stataaents. i 3 __! -__1 PARKING AUTHORITY OF THE CITY OF HUNT MGTOR BEACH NOTES TO FIHANCtAL STATEMENTS lttar (1) SLroary of Significant Accountina Pniicies Sasis of Accountin: The arce"nying financial statemnts of the Parking Auttority of the City of Huntington Beach (Parking Authority) have been prepared using the accrual basis of accounting. Fixed Assets and Oeorecistion Fixed assets are recorded at cost. Land Imprav-- +ents ara depreciated ueing the straight-line methot over the term of the lease with the City of Huntington Beach (City). Investments tnvestmtnts are slated at cost and consist of Federal eovernment backed securities and bunk time certificates of dtposit (see Note 3). Lease The Parking Authority leasing operations consist principally of the leasing of Its parking facilities to the Cir-, of Huntington 32ach. The Parking Authority lease with the City of huntington 8,ach Is classified as an operating Tease. (2) Operations The Parking Authority is an indepanda:t public agency established in 1g67 under provisions of the Parking Law of 1949. The primary purpose of the Parking Authority Is to provide c.f-street parking facilities for t4a City of Huntington Beach. The Parking Authority leases its parking fr:illties to the City uneef a lease agreement which requires mini.aum annual rental payments of 5170,11SO through July 1, 1993. The Parking Authority obtained the Funds to acquire and construct these facilities through the issuance of $2,300,000 of reierue bands which are secr,red by the rental payments received from the City. The rental Is paya:le annually ai July 1. Rental income is �o be csed for bend principal and interest requirements. Excess fonds, if any, Including =nterest earned thereon, which are not required to meet :chedulvd principal ant interest payments and which are not required by the bond irode.^.ture a remnant to be established as a reserve may be: (1) used to finekte additions a,:: Ptpro►ements to the parking facility, cr �.) applied as a credit against annual rental payments fran the City. 4 I I y r • PARKING AUTHORITY OF THE CITY OF HUNTINGTON REACH NOTES TO FINANCIAL STATEKEMTS, CONTINUED !2) -1aerations (Continued) Under the terms of the lease agreement dated September 30, 1968 bet4aen t`» Parking Authority and the City, the lease I: to terminate after all of the 1968 revenue bonds are retired or provisieve for retirement has been wade. All costs of maintenance and operation have been assumed by the City, The Pity must also pay, in the form of additional rent, all taxes, aisesments, insurance, fees and other expanses of the Parking Authority. At the te741natlan of the tease, the Parking Authority will retain title to the parking facility. (3) Bonded Debt A stmary of the Parking Authority bonded debt is cs follows: Bonds Bonds Matured Katured P..-aunt Roods During Bonds During aonds Date Years of Rates of Original Outstanding Fiscal Outstanding Fiscal Outstanding Description of Issue Nsturity Interest Issut 1919 1�8D ` 6! 03 !80 19111 6/30/Bl 1963 Parking Septeeber, 1970-72 6.00% $ 1S01000 Revenue 9onds 1%8 1973-79 4.7S 470,000 80,000 80,090 -- -- -- i9e0-as 5.00 S70,090 570,00c -- 570,aoo as,00a 4a5,000 1986-93 5.2S 111101000 1,110,000 1,II0,000 52 00 000 t 6,7 s-006 80,000 116a0,DD0 81,s100 1 5 000 Interest Is payabi; seml-annually or: March I and September 1. Provisi%ns of the bond agresownt provide for the estabiistaent of three s;�eclal funds as follows: (a) Bond Service Fund - All revenues received by the Parking Authority from the leas:, of the parking fatitlty are placed In the be-od service fund. Money In th:s fund Is used to pay bond principal and interest. Amounts receive) in excess of the account required to ateet principal and Interest rarulrements may be transferred to the reserve fund or working capita: fund. Under certain circumstances, such excess funds may be used to fincnce additions and improveieents or reduce the annual rental due from the City. I 5 k f pi I PARKING AUTHORITY OF THE CITY OF HUHTINGTOH BEACH ROTES T3 FINANV AL STATEMEW S, CONTINUED (3) 3-)nded 3ibt (:untinu--d) (b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside to be used to pay principal and interest currently payable In the event there 1s insufficient money in the bond service fund and may be applied to the final payments of principal and Interest. (c) porting Capital Fund - Aftar provision has been made for payment of bond principal and interest and an appropriate reserve fund balance has been --stablished, excess mo..ay, if any, remaining In the bond service fund may be transferred to this working capital fund to oe used to pay the administrative expenses of the Parking Authority and maintain the working capital fund's cash at a balance of at least $1,SQQ. At June 30, 1981, the Parking Authority maintained the following investments pursuant to the terms of the bond agreement (see !tote 1}: Bond Service Fund 5666,01t g59$,8 : Reserve Fund 98,2M6 yt.):2 76k2_ 605 Bonds maturing on and after September 1, 1950 are subject to call and redemption at the rtion of the Parking Authority as a .+hole• or in part, in inverse order of maturity and by bond number within a single maturity on September 1, 1979 'Ind on any interest payment date thereafter. The bonds are redeemable at par value plus cccrued Interest and a !)remlum equal to 1/4 of ? percent for each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3-1/2 percent- 6 i i This Page left Blank Intentionally 1 1 Lr�JlIU���J� U \JIJU�J� ARTHUR YOUNG 3 COMPANY I SUITE 900 3200 PARK CENTER DRIVE P, O. BOX 2410 COSTA MESA. CALIFORNIA 02021; Honorable City Council City of Huntington Beach, California + We have examined the combined financial statements of the City of Huntington Beach for the year ended June 30, 1982, and have issued our report thereon dated September 16, 1982. Our examination was made in accordance with generally accepted j auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures are we � considered necessary in the circumstances. . 1 In connection with our examination, we also (1) performed tests of compliance with the Revenue Sharing Act and regulations required by Section II.C.2. of the Audit Guide and Standards for Revenue Sharins and Antirecessi5n 1� a�`�cal` Assistance un Recipients (Guide) issued by the Office of Revenue Sharing, U. bepartment of the Treasury, and (2) compared the data on the attached Bureau of Census Form RS-8 for the year ended June 30, 1981 (the latest periel available at the time of our examination) with records supporting the City's combined financial statements for the year ended June 30, 1981, which were examined by other auditors, as required by Section II.C.3. of the Guide. In connection with our examination, nothing came to our attcation that caused us to believe that the City of Huntington Beach was not in compliance with the regulations for the year ended June 30, 1962 or that there were any material differences between the data on Bureau of Census Farm RS-8 and the records of the City of Huntington Beach for the year ended June 30, 1981. Hoe ever, it should be noted that our examination was not directed primarily at obtaining such knowledge. In addition, certain of the above--mentioned procedures were performed on a teat basis and Would not necessarily have disclosed all instances for noncompliance. t.,�W V"_V September 16, 1932 i I f l City Of Huntington Reach � Fiscal Year Annual V nde l June 30, 1 -82Fi6inan ia Report DEPARTMENT OF ADMINISTRATIVE SERVICES Frank S. Arguello, Chief HUNTIN'GTON BEACH CITY OF HUNT I NGTON BEACH ANNUAL FINANCIAL REPORT JUNE 30, 1982 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Elected City Officials Departments of the City Exhibit Pa c FINANCIAL SECTION Report of Certified Public Accountants j I Combined Financial Statements: Combined Balance Sheet - All Fund Tyr-:; ai,d Account Groups I I Combined Statement o° Revenues, Expenditures and Changes In Fund Balances - All Governmental Fund Types and Expendable Trost Funds 11 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis actual - Governmental Fund Types ill o Combined Stc'2ment of Revenues, Expen_bs and Changes In Retained Earnings - All Proprietary Fund Type-- IV 10 Combined Statement of Changes in Financial Position - All Proprietary Fund Types V 12 Votes to Combined Financial Statements 14 i Additional Financial Wormation: Combining Financial Statements Statement Paoe General Fund% Statement of Appropriations, Expenditures and kncurmbrances I 31 Special Revenue Funds: Combining Balance Sheet 11 32 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 111 34 Combining Statement of Revenues, Expenditures and Changes In Fund Bal3nces - Budget and Budgetary Basis Actual IV 36 Statement 1'a ec FINANCIAL SECTION (continued) i Additional Financial Information (continued): �! Combining Financial Statements (continued) Debt Service Funds: Combining Balance Sheet V 42 Combining Statement of Revenues, Expenditures and Changes in Fund Balances VI 4j Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Actual Vil 44 Enterprise Funds: Combining Balance Sheet Vill 45 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 1X 47 Combining Statement of Changes in Financial Position X 45 Internal Service Funds% Combining Balance Sheet XI 5o Combining Statement of Revenues, Expenses and Changes in Retained Earnings Xil 51 Combining Statement of Changes in Financial Position Xiil 52 Expendab:e Trust Funds: Combining Balance Sheet XIV 53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances XV S4 STATISTICAL EXHIBITS (Unaudited) Schedule La le Statement of General Fund Revenues - Other than Property Taxes - Last Ten Fiscal Years I !i5 Statement of General Fund Expenditures - Last Ten Fiscal Years li 56 Statement of Assessed Vaiva, Debt Limit and Ratio of General Obligation Bonded Debt to Assessed Value and Per Capita - Last Ten Fiscal Years 111 5; Statement of Tax Delinquencies and Jr.-pounds - Last Ten Fiscal Years IV g8 Statement of Future General Obligation Bonded Debt Requirements by Year based on Bonded I:ebt V Sy Schedule Fage STATISTICAL EXHIBITS (Unaudited) (continued) Statement of Future Water Revenue Bond Requirements by Year Based on Outstanding Debt VI 60 Huntington Beach Public Facilities Ccrporatica Statement of Bonded Debt VII bl Huntington Beach Public Facilities Corporation Statement of Future Debt Requirements by Year Based on Bonded Debt Vlll 62 Parking Authority of the City of Huntington beach Statement of Bonded Debt IX 63 Parking Authority of the City of Huntington Beach Statement of Future Debt Requirements by Year Based on Bonded Debt x 63 City of Huntingtoc. Beach Miscellaneous Statistics X1 64 I This Page Left Blank Intentionally r --j r- � j---j ;-- 1 r- j . Y__j . ..1 L_._J L—.1 L _J i_._ i •-._-' -� �-.._� OFFICE OF THE CHIEF OF AD"INISTRATIVE SERVICES FRANK B. ARGUELLO, CHIEF yr. Charles W. Thompson City Administrator City of Huntington Beach Dear Mr. Thompson: Submitted herewith is the Department of Administrative Services Annual Report containing the City's financial statesrents for the Fiscal year ended June 30, 1582. The compreFensive report encompasses all funds, reflects the results of all financial transactions, cnd represents the culmination of accounting processes performed during the fiscal year. General Fund Rev^_hues and transfers from other funds for general fund purposes totaled $45,016,533 in FY-19821 an increase of $2,626:388, or 5.11% when compared to FY-1981. The revenue from various sources and the changes as compared with FY-1981 are a: follows: Percent Change from FY-1981 Source Amount of Total Amount Percent General Property Taxes $1219441408 28.8% $19693,618 13.1% Other Local Taxes 1990407227 42.3 2,045,889 10.7 f Licenses and Permits 2,7362785 6.0 (247,518) (9.0) Fines and Forfeitures 19515,914 3.3 (10,158) (.7) Use of Money and Property 312239113 7.2 670,476 20.8 E Revenue from Other Agencies 2,671,003 5.9 (11824025) (68.3) Charges for Current Services 1,1539439 2.6 (228,616) (19.8) Other Revenue 5299704 1.2 163,579 30.9 Transfers from Other Funds i,201,940 2.7 3, 63,443 30.2 Total $45,016,533 100.0% $2,62n,388 5.8E Gross exrcn1ituri:s and encumbrances for General Fund purposes totaled $44,9889467 In FY-1982 -- an increase of $3,565,628 or 7.9% ,', ova- FY-1981. 3 The undesignated General Fund balance increased from $1,028,111 in FY-1981 to $1,546,489 in FY-1982, an increase of $518,378 or 33.5%. The City continues to fund accrued employee vacation and sick leave which increased from $2,050,501 in FY-1987 to $27282,473 in FY-1982, an increase of $231,972 or 10.2%. Assessed valuation increased by $4, 11%5,379,439 to $5,2199684,140 In FY-1982 -- a 385.9% increase. in FY-1983 it is anticipated the assessed valuation will increase to $5,883,904,006, an increase of $664,219,866 or 12.7%. A comparison of assessed valuation over the last three years with anticipated FY-1983 assessed valuation is as fellows: Assessed Change from Prior Year Fiscal Year Valuation amount Percent 1983 $5,8839904006 $ 664,219,866 12.7} 1982 5,210,684:140 43,14523799439 385.9 1981 1,074,304,701 9093779031 9.2 1980 983,927,670 152,144,050 18.3 * The method used to determine Assessed Valuation was changed for FY-1982. Previously, assessed valuation was 25% of market value. The new method is 100% of market value. Therefore, to compute the change from the previous year, the FY 1981 assessed valuation should be stated at 4,297,2189804 (1,074,304,701 x 4). The change then would be $922,465,336 i or 21.5%. Outstanding general obligation bonds as of June 30, 1982 totaled $4,150,000. This Is comprised in total of 1963 Park Bonds. There is, as of .June 30, 1982, $1,566,030 outstanding on the 1963 Water Revenue Bond but this does not represent a general obligation of the City of Huntington Beach. The tax rate necessary to provide funds for voter approved indebtedness totaled $0.04635 per $100 of assessed valuation. This is In addition to the City's share of the overall $4.00 per $100 of assessed valuation permitted as a result of the passage and implementation of Proposition 13. For fiscal year 1983, the tax rate necessary to provide funds for the voter approved debt will be $0.05756 per $100 of assessed valuation. This, in addition to the City's portion of the overall tax rate of $1.00 per $100 of assessed value, will be the City's total property tax revenue. I Comparative data for the City's Water Utility operation for the past two years is as follows: 1932 1981 Total operating revenue $59739:349 $5,814,133 liet income 81,797 1,098,1093 The City completed the reconstriction of the accounting records for fixed assets of the enterprise funds and of the General Fixed Assets Account Group. This resulted in the restatement of the beginning balances, which caused the reduction in net income in the Water Utility net operations. A supplemental information section has been Included in this report which contains comprehensive statistical data. Such data is presented so as to relate physical, economic, social, and politic&l characteristics of our City which should give the readers of this report a more broad and complete understanding of the City and Its financial operations. i t This fln3ncial report has been changed to report In conformance. with Statement I of the National Council on Governmental Accounting. In accordance with Section 616 of the City Charter, the City Council shall employ at the beginning of each fiscal year, an independent certified public accountant who should examine all the City's accounts and the results reported to the City Council. The opinion of Arthur Young 6 Company, Certified Public Accountants, is included In this report. 1 wish to express my appreciation to the members of the Administrative Services Department without whose dedicated efforts this report would not be possible. In addition, I would express my appreciation to you and the City Councii for the continuing support and interest in planning and conducting the fiscal affairs of this city in a responsible and progre5�lVe manner. Respectfully submitted, Frank S. Argue to Chief of Administrative Services FBA:dp I This Page Left Blank intentionally l i L —1 ! .1 __ _1 `_.1 L__1 CITY OF HUNTINGTON BEACH ELECTED OFFICIALS CITY COUNCIL Ruth S. Bailey Councilperson Ruth E. Finley Counciiperson Jack Kelly Councilperson Robert P. Handic, Jr. Mayor Donald A. MacAllister Mayor Pro Tem Ronald R. Pattinson Councilperson John A. Thomas Councilperson OTHER Gail Hutton City Attorney Warren G. Hall City Treasurer Alicia 11. Wentvibrth City Clerk i ADMINISTRATIVE OFFICIALS Charles W. Thompson City Administrator Frank D. Arguello Chief of Administrative Services James Palin Development Services Director Paul E. Cook Director of Public Works Vincent G. Hoorhouse Community Services Director Raymnd C. Picard Fire Chief r Earle W. Robitaille Police Chief i This Page Left Blank intentionally i i _ _ j f Financial Section r � J L_� l_._ L_1 L—J L_J l___, L _.l —_1 ARTHUR YOUNG & COMPANY SUITE 90 The Honorable Members of the City Council 3200 NARK CENTER DRIVE City of Huntington Beach, California P. O. BOx 2410 COSTA MESA, CAUFORNIA 92626 We have examined the combined financial statements of the City of Huntington Beach, California, at June 30, 1982 and for the year then ended, 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 accounting records and such other auditing procedures as we considered necessary in the circumstances. As more fully described in Note 2 to the combined financial statements, the City reconstructed its accounting records for fixed assets of the enterprise funds and of the General Fixed Assets Account Group. This resulted In a restatement of the beginning balance of retained earnings for the enterprise funds and an increase to the Investment in general fixed assets for the General Fixed Assets Account Group. In our opinion, the statements mentioned above present fairly the financial position of the City of Huntington Beach, California, at .tune 30, 1982 and the results of operations and 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 primarily for the purpose of forming an opinion on the combined financial statements above, taken as a whole. The combining, individual fund and account group financial statements and other schedules listed as additional financial information in the table of contents are presented for analyses purposes and are not necessary for a fair presentation of the financial information referred to In the preceding paragraph. It has been subjected :o the tests and auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all respects material In relation to the combined financial statements taken as a whole. The accompanying statistical exhibits are also presented for the purpose of additional analysis and are not a required part of the combined financial statements of the CIty of Huntington Bleach, California. These statistical exhibits were not audited by us and, accordingly, we do not express an opinion on them. September 15, 19$2 a4i" Jk7 I This Page Left Blank Intentionally i I I i i Combined Financial Staterae its a A L—.1 L__I L_J L___1 �_.__i _ _ L____1 L-._J _1 __._1 ^i _I __.I _' j CITY OF HUNTINGTON BEACH EXHIBIT 1 Combined Balance Sheet - All Fund Types and Account Groups June 30, 1982 Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups Fund Type General General 5peclal Debt Enterprise Internal Expendable Fixed 1-ong-term Totals General Revenue Service Note 12 Servict. Trust Assets Debt lliemo on17 Assets Cash and term deposits $6,493„21 $129222,430 $ 91668 $ 49853,645 $5,247,984 $19626,069 $ $ $ 30,453,517 Accounts receivable, net of allowance 169,765 -- -- 375,668 -- -- -- -- 545,453 Property taxes receivable, net of allowance for uncollectible taxes ($2,223,169) 467,468 -- 12,152 -- -- -- -- -- 419,b2u Notes receivable, net of allowance -- 13,547 -- -- -- 378,g79 __ __ 9929426 Interest receivable 83,839 153049 -- 67,i05 67,455 -- -- -- 3719748 Deposits -- -- -- 329269 -- -- -- -- 32,265 Investments, at cost which approximates market (Note 6) 1091811 -- -- __ __ __ 1099811 Due from Redevelopment Agency 1849150 -- -- __ __ __ __ __ W4115n Due from other fuc.ds -- -- -- -- 17,534 -- -- -- 17,534 Due froe, other governmental units 672015 736074 -- -- -- -- -- -- 19408,481 Prepaid expenses 83,523 -- -- -- -- -- -- -- 83s52s Amount available in debt service Fund -- -- -- __ __ __ __ 219820 c1,820 Amount to be provided fur debt retirement -- -- -- -- -- -- -- 41128,180 4,126,i30 Amount to be provided under financing leases (Note 4) -- -- -- -- -- -- -- 12,129,768 12,12%768 Leased Fazilit=es under financing leases (Note 4) -- -- -- -- -- - 13 013,304 -- 13r513,304 Property, plant and equipment, net of allowance for depreciation (Note 3) -- -- -- 3198659711 -- -- 39,167,049 -- 71,0329760 Restricted assets - cash and investments -- - -- 511,600 -- -- -- -- j11'600 Total assets $8,264,592 $13,125,500 $21,820 $3L 705,018 $5,332,973 $2 60�-�948 43,080,353 516,279,768 4136,415,272 See accompenying notes to combined financial statements. 1 CITY OF HUNT14GTON BEACH EXHIBIT i Combined Balance Sheet - Ail Fund Types and Account Groups .tune 30, 1982 Governmental Fund Types ProprietarX Fund Types Fiduciary Account Groups Fund Type General General Special Debt Enterprise Internal Expendable Fixed Long-term Totals General Revenue Service Note 12 Service_ Trust Assets debt Mlema oni Liabilities Accounts payable $ 716,758 $255,686 $ -- $ 3289815 $ 2,932 $ -- $ -- -- S 1,304091 Accrued payroll 1,067019 5007 -- 1339416 19170 -- -- :,206,612 Insurance claims payable -- -- -- -- 39042,359 -- -- -- 31042,359 Deposits 299,354 1,717 -- 367,559 -- 1279350 -- -- 795:y80 Due to other funds 16,833 65 -- 636 -- -- -- -- 17,534 Accrued interest payable -- -- -- 46,325 -- -- -- -` 46025 Current installment of notes payable (Notes 8, 9) -- -- -- 56981n -- 6,541 -- -- 63,351 Deferred rental and other Income 6612930 -- -- -- -- -- -- 601030 Current liabilities (payable from restricted assets): Current installmenL bonds, payable (Note 7) -- -- -- i50,00iI -- -- -- -- 150,003 Accrued Interest payable -- -- -- 12,725 -- -- 129725 Obligption under financing leases (Nate 4) -- -- -- -- -- -- -- 121129970 12,129,76c Fonds, net of current installment (Note 7) -- -- -- 1,4169000 -- -- -- 4,15�,00L� 595669600 Notes payable, net of current Installment (Notes 8, 9) -- -- -- 29:y81582 -- -- -- 29298,562 Total liabilities ?, 1, 9 2T2-;V7 -- t 11�0,# � 3 b� l—T9l -- 16,2279,7,7 a 27,255,357 Commitm^_nts an3 contingencies (Note 49 51 9, 10) 2 f 1 . l ___: l 1 L L-_J L__! l .-__I I..__J J C_.__i !__J i __J t _ ._I t 1 CITY OF HUNTINGTON BEACH EXHIBIT I Ccmbined Balance Sheet - All Fund Types o:,d Account Groups June 30, 1982 Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups i Fund Type General General Special Debt Enterprise. internal Expendable Fixed Long-Term Totals General _Revenue Service Note 11 Service Trust Assets Debt (Demo only) l Fund Equity (Note 2) Contributed capital: j In aid of construct!on -- -- 28005,111 -- -- -- -- 2820050111 j From General Fund -- -- -- I.�59,932 -- -- -- -- 19350P9932 Investment in general fixed assets -- -- -- -- -- 539080,353 -- 53,080,353 Retained earnings: Reserved for revenue bond retirement -- -- -- 348,975 -- -- -- -- 348,875 Reserved for future insurance claims -- -- -- -- 7509000 -- -- - 750,000 Unreserved -- -- -- 31181,232 1,536,512 -- -- -- 4,717,744 Fund balance: Reserved for encumbrances 894,867 1,64b,g68 -- -- -- -- -- -- 295399835 Reserved for amounts due beyond one year 7539869 5189757 -- -- -- -- -- 1,172,b26 Reserved for reimbursement agreements (Note 5) -- 635M O -- -- -- -- -- 635,410 reserved for disaster re!1ef -- 92,249 -- -- -- -- -- __ 92,245 Unreserved: Designated For: Vacation and sick leave 2,282,473 -- -- -- -- -- -- -- 2,262,473 Special enforcement 259000 -- -- -- -- -- -- -- 253,000 Future development -- 78,226 -- -- -- -- -- -- 76,226 Unde51gnated (Note 10) 1,546,489 6w489 9 89, 3L 415 21,820 -- -- 2,471,057 -- - 13,932,781 Total fund equity 5,502,628 1;!,863,025 21,820 32,895,150 2T�E6�512 22471 .057 53,080,353 -- 109 L120,b15 Total liabilities and fund equity $8,264,592 $13,125,500 $21,820 $37,706,018 $5 33,?,973 $E,604,948 45MAJ53 S16,275,7b8 4134,415,972 See accompanying notes tj combined financial statements. I 3 F HU i NGTON BEACH CITY 0 HT EXHIBIT 11 H Combined Statement of Revenues, Expenditures and Channes in Fund Balanccs - All Governmental Fund Types and Expendable Trust Funds Year Ended June A 1982 Governmental Fund Types Fiduciary Fur.d Tykes Special Debt Expendable Totals General Revenue Service Trust (nema only} Revenues: General property taxes $12,944,408 $ -- $419,638 $ -- $139364,046 Other local taxes ;99040,227 -- -- -- :9,040,227 Licenses and permits 2,7369785 266,122 -- -- 39002,907 Fines and forfeitures :,515,914 -- -- -- 1,515,414 Use of money and property 3122:. 1" 1,779,365 -- 373,123 5,375,601 Revenue from other agencies 2,671,003 6,438,287 -- -- 991099290 Charges for current services 1,15311-639 162039 -- -- 1,316,278 Contributions to deferred compensation plan -•- -- -- 311,455 31i,455 Other revenues 529,704 -- -- -- 522,704 Total revenues 43,814,593 8,646,613 419,638 634,578 53,565,422 Expenditures: Administrative 4,493,484 211 -- -- 4v4939695 Support 3,6549024 45,665 - 396990689 Community services 15,516,826 1 ,052054 16,56899811 Public safety 20,4299266 1,077050 -- -- 2i,506,316 Highways and sC-eets -- 2,656,408 -- -- 2,6569408 Drains and sewers -- 532,055 -- 53=,055 Park development -- 19684,621 -- 1AU49621 !I Paid to participants in -- -- employee deferred compensation plan 65,442 65,442 Loan subsidies and lawn losses -- 389575 -- -- 38,575 Grants -- 1,256,813 -- -- 1,256,813 Miscellaneous -= -_143 461 == 604 Redemption of matured 'bonds 210,000 210,000 Interest _ -- -- 260,525 -- 260,525 Total expenditures 44,093,600 8,343,695 470,986 65,442 529973,723 _ _ _ 1 -- - I r I ; I I 1 f 1 1 i - } f-- I i---] V-1 I I l .. I- _.. t _ I _. L � : ►_._ J I L_..t LJ t _J �1 _l 1 t____1 L____J !___.i _-_- _ I -__J _J __j I CITY OF HUNTINGTON BELCH EXHIBIT If Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Year Ended June 30, 19B2 Governmental Fund Types riduciary Fund Type Special Debt Expandable Total General Revenue Service Trust %,demo on 1 y) Excess (deficiency) of revenues over expenditures (279,007) 302,918 (519348) 6191,136 591,099 Other financing sources (uses): Operating transfers in (out) 1,201,940 (814,521) - -- 387,419 Excess (deficiencies) of revenue and oiler-sting transfers In over expenditures and operating transfers out 9229933 (5119603) (51,348) 619,136 W9018 Fund balance at .tune 30, 1981 4,785,927 1391689466 73068 i,8519921 192679,482 Deficit transfer (in) out (Note 11) (206,162) 206,162 Fund balance at June 30, 1982 $5,502,698 $12,863,025 $ 21,820 $2 4� 71,057 s20,858,boo See accompanying notes to combined financial statements, 5 CITY OF HUNTINGTON BEACH EXHIBIT lie Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actuai Governmental Fund Types Year Ended June 30, 1982 General Fund Special Revenue Funds Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget actual (Unfavorable) Revenues: General property taxes $13,1399170 $12,944,408 $ (1949762) $ -- $ -- $ -- Other local taxes 18,887,000 19,040,227 153,227 -- -- -- licenses and permits 3,293,000 297369785 (556,215) lt6609000 266,122 (1,393,878) Fines and forfeitures 1,,545,000 1,515,914 (29,086) -- -- -- Use of money and property 2M0,000 3,223013 511,113 1:267,500 19779065 511,865 Revenue from other agencies 3,2069000 2,671,003 (534,997) 10,446t683 6,438,287 (4,008096) Charges for current services 1,796,914 1,153,439 (643,475) 70,0b0 162039 92,839 Other revenues 44,200 529,704 485,504 10,000 -- 10 000) Total revenues 44,621,284 43,814,593 (806,691) 13,454,183 8,646,613 4 807 570) Expenditures: Administrative 6,4079115 4,574,928 1,8329187 1739350 249 173,101 Support 3,9609258 3:6849863 275,395 83,024 883,684 (51660) Community services 16,786,758 16,088:990 697068 1,715,678 1,356,755 3589923 Public safety 20,8909033 20,639,686 250047 %461,695 1,440,729 20,966 Highway and streets -- -- -- 59796,102 2,693,062 3,1039640 Drains and sewers -- -- 294699411 835*363 19634,O48 Park development -- -- 4,676,778 29078,960 295979818 Loan subsidies and loan losses -- -- -- -- 383,575 CO MO Grants -- -- 4,8089069 1t4569143 3,3519926 Miscellaneous -- - - 9,948 143 9,805 Total expenditures 48,044,164 44,988,467 3,055,697 21,194,655 82,9 8,663 112205.992 6 1 f f 1 I [ [ [ [ I i L-_i L_J L_4 L.-_i L__1 L J i__J CITY OF HUNTINGTON BEACH EXHIBIT lit Coma. =ned Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual Governmental Fund Types Year Ended June 30, 1982 General Fund Spec;al Revenue Funds Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Excess (deficiencies) of revenues over expenditures f3,h223,8.30) (1,173,874) 2,249,006 (7,7409472) (1,3429050) 623989422 Ocher financing sources (uses): Operating transfers in (out) 1,414,000 1 20, 1,944 (212,060 ( 611,8001 (814,521 (202,721 Excess (deficiencies) of revenue and operating transfers In over expenditures and operating transfers out (290089880) 289066 20361946 (8,3529272) (29156,571) 61195,701 Fund balance June 30, 1981 4,785,927 4,7859927 -- 139168,466 13,168,466 -- Deficit transfers (in) out 20b 162j (206,162 -- 206,162 _ 206,162 Flind balance at June 30, 1982 2,7779047 4,607,831 19830,784 M163,194 11,2181057 6,401,863 budgetary basis Encumbrances outstanding at June 30, 1982 894,BE7 894,867 -- 1*1644 B 1,644,90 rand balance at June 30, 1982 GAAP basis $3 671 i4 $ 02 6 $1_,,,,, LOjZL4 $6,46i z162 $12,863,025 $0 40, 1,863 See accompanying notes to combined financial statements. 7 CrTY OF NUNTINGTON BEACH E%HIBI7 111 Combined statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual Governmental Fund Types Year Ended June ;0, 1982 Debt Service Fend Total (Memo only) _ Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual Unfavorable Reve—cnci o l i v vs {. uparty Ynv.J W S MO "19,638 V 55,362) $13,614,170 $13,364,046 S (250,124) L Other local :axes -- -- -- 18,887400 19,0402227 153,227 Licenses and permits -- -- -- 4,953000 39002007 (19950,093) Fines and forfeitures -- -- -- 1,54590V 195159914 (299086) Use of money and property -- -- -- 3,9773,500 5,002,478 i,024:a79 Revenue from other agencies -- -- -- l3,6529683 991099290 (4,5439393) Charges for current services -- -- -- 1,866,914 1,3169278 (S509636) Other revenues -- _ -- -- 542200 529,704 _ 475,504 Total revenues 475,000 419,638 (55;.362) 58,550,467 52,880,844 (5669,623) Expenditures: Administrative -- -- -- 6,5809465 4,575077 2,005,288 Support -- -- -- 4,043,2R2 3 713,547 269,735 Community services -- -- 18,502,436 179445,745 19056,691 Public safety -- -- -- 2293519728 2.2,0809415 271,313 Highways and streets -- -- 5,7069702 2,6a39062 39103,640 trains and sewers -- -- 21469,411 B359363 1,634,048 Park development -- -- -- 4,676:778 2,078,960 21597,818 Loan subsidies and loan losses -- -- -- -- 38,575 (38,575) Grants -- -- -- 49808,069 13,456,14? 39351,926 Miscellaneous 500 461 39 10,448 604 99844 Redemption and rr.:tured bonds 205,000 210,000 (5006) 2115,500 210,000 (5,000i Interest 265,000 260,52E 4,47E 265,000 260,525 4,475 Total expenditures 470,500 470,986 (486) 69,709,319_ 55,448,116 14,2611203 8 I i f - - 1 i- --1 1--1 —1 ] i`-1 r---1 -----1 -1 ----1 --1 ---1 --A L_J U! L.-1 �.___1 LrI -A -J J CITY OF HUNTINGTON BEACH EXHIBIT IIt Combined Statement of Revenues, Expenditures and Changes In Fund Balances - Budget and Budgetary Ba• ,s Actual G.ivernmental Fund Types Yebr Ended .tune 30, 1982 bebt Service Fund Total (demo only) Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget _Actual (Unfavorable) BTdAot Actual (Unfavorable) Excess (deficiencies) of revenues over expenditures 4,500 (519348) (;5,8W (11,1589852) (29567*272) b,591,5ba Cther financing sources (uses): Operating transfers in (out) -- 8023200 387,419 (414,61 i Excess (deficiencies) of revenues and operating transfers in over expenditures and operating transfers out 4,500 (51,348) MOW (1093569652) (21179053) 8117b,795 Fund balance at June 30, 1981 73,168 73,168 -- 18,027,561 13,02.7,561 -- Deficit tranfers in (out) -- -- -- -- -_ -- Fund balance at June 30, 1982 77,668 2t,820 (55,848) 7967000 15,8479708 8076,?99 budgetary basis Encumbrances outstanding at -- _ _ June 30, 1982 - 2,539,835 2 53 935 Fund balance at June 30, 1982 GAAP basis a77,b68 $21,870 $ 48) $10,210,744 $18,3b7,543 $ ?y See accompanying notes to comvined financial statements. 9 CITY OF HUNTINGTON BEACH EXHIBIT IV Combined Stijtement of Rever+ues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year Ends: Jane 309 1982 Enterprise Internal Total (tote 12F Service (mom ;nlyj operating revenues: Char;es for current services $5,640s482 $1,9079258 $7,547,140 Usz- of money and propert} 183,683 -- 1832683 Other operating revenue _�8,867 -- _ 48,867 Total operating revenues 51923,032 1,9072iffe 7,830,220 Operating expenses: Snurce of supply 1,164,g08 -- 1,164,908 Pumping expense 19418,205 -- 1,41$1205 Water treatment 349158 -- 34058 Transmission and distribution 4229049 -- 422,049 Admi::istrat've and general 1,018094 1369049 19i5k,843 Contributioi to General Fund in lieu of taxes 8449197 -- MOW Depreciation 191529105 -- 19152,105 Workers' compen_ation claims -- 1,437s75� 1.437,758 Employee medical claims 191099035 1,149035 Llability claims 7029223 702,223 Other -- 4,621 4,621 Total operating expenses 6,08,416 1,389,686 9,444,102 i 10 : .. 1 ---_I L.__, L__J i___} L I L_J _1 L__J i____.! :_1 L__J &L—I CITY OF HUNTINGTON BEACH EXHIBIT IV Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year Ended June 30, 1982 I Enter rise Internal Tota! Dote 12 Service memo only Ope_-eting loss (131,384) (19482,428) (1,b139812) Non-operating revenue (expense): I� Interest Income 730,498 800r661 19531,159 Other revenue 87,968 87,968 Interest Expense (207,221) _ ,_(207,221) Total non-operating revenue 6"'245 800,661 i 411 06 Income (loss) before operating transfer 479s861 W-1,767) (201,906) Operating transfer to General Fund (387,419) 87 4l ) Net income (loss) 929442 (681J67) (585,325) Retained earnings at June 30, 1981, as previously stated 1195109804 i,968,279 1j�,479,083 Prior period adjustment (Note 2) 8 170 510) _- (8,174,510 4,510) Retained earnings at June 30, 1981, restated (Dote 2) 39340,294 2,968,279 60089573 Increase in reserve for retirement of revenue bonds 97,371 -- 97,371 Retained earnings at June 30, 1982 $ 3.530,107 $2 28b 12 $ $lb bl See accompanying notes to combined financial statements. i CITY OF HUNT13GTON BEACH EXHIBIT V Combined Statement of Changes to Financ=al Position All Proprietary Fund Types Year Ended Junc 30, 1982 Enter rise Internal Total Note 12F Gel-vice (Memo only) Sources of Working Capital: Operations: Net income $ 92,442 V681,767) $ (589,325) Item nut requiring working capita+: Oepreciatian 1 1�05 -_ 1,152,105 Working capital provided for by operations 11,2449547 (08ld67) 5629780 rontributed capital 1077,866 -- 1077,886 Increase In reserve for revenue bond retirement 97,371 97,371 Total sources of working capital 2,419,804 (681,767) 1,79,037 Uses of working Cepital: Addition of fixed assets 2086,753 -- 21186,753 increase in restricted assets - cash with fiscal agents 106,096 __ 1069096 Reclassification of note payable 379244 __ 37,244 Reclassification and redemption of long-term bonds payable 229,310 __ 222.31n Total uses of working capital 2 55, 9,403 2 •ram Net decrease in working capital ital S t139,�g9? � 681 6 j � 821 66l I 12 f - F- i F-1 -- --_ -� ;---i L-_1 L_j I _ I L—J L___1 L--J L._J L J 1._-__.! I :__ J __J __1 __S -__j C1TV OF HUNT1NG70N BEACH EXHIBIT W Combined Statement of Changes in financial Position All Proprietary Fund Tyypes ! Year Ended June 30, 19 Enterprise Internal Total Note 12T Service (Memo only) Changes in Components of Working Capital: ! Increase (decrease) in current assets: Cash and deposits $ (48,500) $ 347,636 $ 2999136 Accounts receivable, trade (net) 38031 -- 38933i Accounts receivable, other (net) (159050) -- (159050) Interest receivable (14,173) (129950) (27,123) Due from other funds -- 3.812 3,812 Total 9 3 2} 338,498 299,106 Decrease (increase) in current liabilities: Accounts payable (429169) 15,399 (269770) Accrued payroll 0 1,22^' (181) (11,401) Customer deposits (37,909i -- (37003) Due to other funds (99) -_ (99) Accrued interest payable 1,�75 12275 Insurance claims payable -- (1,035.483) (10359483) Current portion cf notes and bonds payable (10.085 Total (10` 0,207 (1 02,E az26�} (L120,4L} Net decrease in working capital (82� 1,366) See accompanying notes to combined financial state.aents. I 13 CITY OF IUNTI NGTO-H BEACH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1982 Note (1) Summary of Significant Accounting Poticias The feilowing in a sumpr-y of the significant accounting policies of The Clty of Huntington 3each, California (City). A. Fund Accounting The accounts of ::.e City are organized on toe basis of funds and account groups, each of which is considered a separate accounting entity. The operatians of each fund are accounted for with a :.eparate se_ of self-balancing accounts that compriae its assets, liabilities, fund eQuity, revenge and expenditures, or expenses, as appropriate. Government, resources are allocated to and accounted for in individual funds based upon the •,urposes for which they are spent and the means by which spending activities are controlled. The various funds are grouped in the fWanclal statements in this report into six generic fund types and three broad fund categories as fol loves: j GOVERNMENTAL FUNDS vet;ra 1 Fund The General Fund is the general operating fund of the City. it Is used to account for all financial resources except those required to be accounteo ";7 !;, another fund. Special Revenue Funds Special Revenue Funds are ueed to account for the proceeds of specific revenue sources (other than expendable trusts) that are restricted to exp::nditures for specified purposes. Debt Service rLnds ;.ebt Service Funds :..,e used to account for the accumulation of resources for, and the payniert of, general tong-term d:bt principsi, interest, and related costs. PROPRIETARY FUNDS Enterprise Funds The City's enterprise Funds are used to account for operations that are financed and operated In a manner similar is private business enterprises and where the Intent tjf the governing body Is that the costs (expenses, including dc.ireclation) of providing goods or services to the general public o!, a continuing basis be financed or recovered primarily through user charges. 14 I r -- i 1 7-1 __� _ 1 _l __ _ -� _._1 ..� _73 r CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS I Internal Service Funds Internal Service Funds are used to account for the financing of services provided by one department to the other departments of the City on a cost reimbursement basis. FIDUCIARY FUNDS Expendable Trust Funds Expendable Trust Funds are used to account for assets held by the City for ind'vlduals, private organizations or other governments. Expendable Trust Funds are accounted for in essentially thu same Winner as govern-mental funds. i B. General Fixed Assets and long-term Debt Groups The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds and Expendable Trust Funds are accounted for on a spending or "financial flc:0" measurement focus. This means that only current assets and current liabilities are generally Included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other Financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Acquisitions or" property, plant 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. Assets acquired from gifts or contributions are recorded at fair market value at the time received. Self-constructed assets are recorded at the amount of direct labor, material and interest costs. Expenditures for infrastructure (roads, curbs and gutters, sidewalks, drainage systems, etc.) normally are not capitalized as such assets are lmwvable and generally of value only to the City. No depreciation is provided for assets capitalized in the General Fixed Assets Account Group. Long-term liabilities expected to be financed from governmental funds are accounted for In the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "Funds." They are concerned only with the measurement of financial position. They are not involved wl:;) measurement of results of operations. 15 CITY OF HUNTINGTON BEACH NOTES TO COMB1N€D FINANCIAL STATEMENTS Noncurrent portions of long-term receivables of governmental funds are reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues r_presented by noncurrent receivables is deferred until they become current receivables. Receivables for amounts due beyond one year are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmenta! fund types Is limited to exclude amounts represented by noncurrent liabilities. Since they de not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities In the General Long-Term Debt Account Group. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are Included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) In net total assets. Property, plant and equipment acquired by proprietary funds are capitalized at cost at the time of purchase in the respective fund. Asr2ts acquired from gifts or contributions are recorded at fair market value at the time received. Depreciation on such assets Is ca.culated on the straight-line method over the estimated useful lives shown below and charged to the operations of the respective fund. Fixed Asset Category Useful Life Production and pumping plant 10-50 years Transmission and distribution plant 10-50 years General plant 20-50 years l Transportation equipment 5-30 years Assets leased under capital leases by governmental fund typ• - (Note 4) are included in the General Fixed Assets Account Group. The related lease obligations are recorded In the general Long-: 3 Debt Account Group. 4 .16 L_J ;__� _J L -.; _ _J __ CITY OF HUNTINGTON BEACH MOTES TO COMBINED FINANCIAL STATEMENTS C. Basis of Accounting Basis of accounting refers to the recognition of revenues and expenditures or expenses in the accounts and the reporting of revenues and expenditures in the financial statements. Basis of accounting relates to the timing of the measurements made. regardless of the measurement focus applied. All governmental funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditures are ger orally recognized under the modified accrual basis of accoupting when the related fund liability is incurred. Exceptions to this general rule include: (1) accumulated unpaid vacation, sick leave, and other employee amounts which are not accrued; and (2) principal and interest on general long-term debt which is recognized when due. All proprietary funds are accounted for using the accrual basis of accounting. Revenue- are recognized when earned, and expenses are recognized when incurred. O. Budgetary Process Annual budgets adopted by the City Council provide for the general operation.; of the City. Revenues for the Special Revenuc Funds are budgeted by entitlements and grants; expenditures and transfers are budgeted bast.- upon available fund resources. The City Council adopts an operating budget at the beginning of the City's fiscal year. The resolution approving the budget authorizes the Chief of Administrative Services to transfer funds from like objects or purpose within the s;me 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 reappropriatlon of prior year encumbrances to fund approved protects am _-r.ain operational expenditures. The Council is authorized to make and has made appropriation adjustments to the budget during the year as deemed necessary. The adjustments are Included In the budget amounts in the accompanying financial statements. Tie modified accrual basis of accounting is employed in the preparation of the budgetary Information. Encumbrances are thus incloded with expenditures for comparison with budget data bait not in the combined statement of Revenues, Expenditures and Changes In Fund Balance. Expenditures in that statement will be less than expenditures reported In the combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual by the amount of encumbrances outstanding at June 30, 1582. These encumbrances are subtracted from the fund balances in the later statement so the ending fund balance In the two statements will be equal. 17 CITY OF HUNTINGTON BEACH NOTES TO C0148INED FINANCIAL STATEMENTS E. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as a budgetary control In the General and Special hevenue Funds. Encumbrances outstanding at year end ore reported as reservations of fund balances since they do not constitute expenditures or liabilities. F. Investments 1 investment generally consist of federal 3overnment-backed securities, bankers acceptances, and municipal securities. Vacation and Sick Leave It Is the policy of the City to record the cost of vacation and sick leave when paid. The fund balance in the General Fund at June 30r 1982 has been pdrtially designated for $2,282,000 which is the total unrecorded liability for vacation and sick leave that has been accunnslated by City employees. H. Pension Plan Substantially all City employees participate in the Public Employees Retirement System (PERS) administered by the State of California. The tetal pension expense recognized by the City for the fiscal year ended June 30, 1982 was approximately $4,098,000. It is the C!tv's policy to fund current retirement costs as accrued. Actuarial valuations and calculations are made for the PERS plan as a whole and not individually for the City and its employees. Therefore, the City's share of the actuarial present value of PERS benefits and net assets are not determinable. J. Deferred Employee CoRRensation The City has a deferred compensation plan wh;reby eligible City employees may elect to defer a portion of their earn:rgs for federal Income tax purposes. The deferred compensation plan has been approved by the Internal Revenue Service (Service). The Service stipulated in Its approval that legal title to the deferred compensation funds, together with any interest t4ereon, mist rest with the City. For purposes of financial statement presentations, theie deferred compensation, funds have been treated as a separate Expendabie Trust Fund of the City. 18 i r [ [ [ - l � " - t - [ {' s E "" 1 l i r —i L __ l.__-� l_-__-: L__: f—' L__f L! L____.I `J L__I _ 1 t-- L---J : _f L__I -3 ___1 A ____-! CITY OF HUNTINGTON BEACH MOTES TO COMBINED FINANCIAL STATEMENTS K. Total Columns on Combined Financial Statements Total columns on the Combined Financial Statements are captioned memorandum (ffee4w) to indicate they are presented caly to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither Is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. L. Property Taxes Property taxes receivable as of June 30, 1982 and expected to be collected during fiscal year 1983 are recognized as reve►rues in 1982. Impound and delinquent tares are recognized as revenue when received. M. Interfund Transactions In the course of normal operations, transactions occur between various City funds. Internal service funds record charg:s to other funds as revenue and the receiving funds record such charges as expenditures or expenses. The General Fund provides administrative services to the enterprise funds. Amounts charged to a fund, if any, for these services are treated as revenue in the General Fund and as operating expenses or expenditures in payor funds. Interfund transactions are not eliminated, nor are Interfund payables and receivables cutstanding at year-end. N. Reporting Entity The accompanying financial statements include data f.,r all departments and agencies comprising the City of Huntington Beach as a legal entity. There are certain separate legal entities which share the title "City of Huntington Beach", including the Public Facilities Cirporation, the Parking Authority and the Redevelopment Agency. These entities are autonomous organizations with their own governmental powers and constituencies. They maintain their own financial records and Issue financial statements separate and distinct from those of the City. Accordingly, they are not Included In the accompanying financial statements. 0. Operational Reserve Fund The City has established an Operational Reserve Fund (Special Revenue) under Article XII111, Section 5, of the State Constitution. The purpose of the fund is to provide sources of monies for operating expenditures in the event of future declines in revenues from the State and Federal government. i I3 i CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS P. Self-insurance The City is self-insured for carious types of risks, principally worker's compensation, public liability and employee health. Operating revenues of these funds comprise payments from other City funds and are based upon estimated insurance policy premiums expense, se'f-insured losses and other operating expenses. it is the City's policy to charge to expense amounts of claims which are reasonably determinable and where the existence of the City's liability Is probable. 0.. Interest The City Incurs Interest expense on general obligations bonds, water .revenue bonds, notes payable and capital leases. During the Year ended June 30, 1982, no interest was capitalized; the City's Interest expense was as follows: Interest expense Governmental fund types% General Fund (capital lease obligations) $ 754s726 Debt Service Fund (general obligation bonds) 260,525 $1 Proprietary fund types: Water Enterprise Funds (water revenue bonds and not2 payable) $ 75,268 Meadowlark Golf Course Fund (note payable) 1312953 $207,221 Note (2) Prior Period Adjustments The City's system of accounting for property and equipment In prior years did not include sufficient controls to ensure all property and equipment acquired b; the City was properly recorded In the accounting records. touring the year ended .tune 30, 1982, the City determined that assets acquired by the slater Utility Fund and Meadowlark Golf Course Fund In prior years had previously been excluded from the books and records. According%, contributed capital and retained earnings for the Water Utility Fund have been restated at $111,805,532 and $(89506,220), respectively, to properly record' the property and related accumulated depreciation. Retained earnings for the Meadowlark Golf Course has been restated at $335,M to properly retort+ the property. Additiorialiy, $17,697033 of property, plant and equipment acquired by the City's General Fixed Assets Account Group In prior years was recorded as a fund asset in the year ended June 30, 1982, with a corresponding Ir.--ease to Pnvestment In General fixed Assets In the accompanying financial statements. 20 i f t , r i V _ i . - i ;---1 - 1 -7 --� -- _- --8 `_7 L,? i._-� L_� z! U i_ L_! L__1 ►___J L---J L A �_1 C I Ty OF HUNTI NGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS P. Self-Insurance The City is self-insured for various types of risks, principally worker's compensation, public liability and employee health. Operating revenues of these funds comprise payments from other City funds and are based upon estimated umbrella insurance policy premiums expense, self-insured losses and other operating expenses. I Q. Interest The City Incurs Interest expense on general obligations bonds, water revenue bonds, notes payable and c;.pital leases. During the year ended June 309 1982, no interest was cant*ali=ed; the City's interest expense was as follows; Interest expense Governmental ,fund types: General Fund (capital lease obligations) $ 754,726 Debt Service Fund (general obligation bonds) 260,525 $101 21 Proprietary fund types: Water Enterprise Funds (water revenue bonds and note payable) $ 75,268 Meadowlark Golf Course Fund (note payable) 131,953 $2072221 Mote (2) Prior Period Adjustments The City's systtm of accounting for property and equipment in prior years did not Include sufficient controls to ensure all property and zgilpment acquired by the City was properly recorded In the accounting records. During the year ended June 3:, 1982, the City determined that assets acquired by the Water Utility Fund and Neadowlatk Golf Course Fund in prior years had previously been excluded from the books and records. Accordingly, contrihuted capital and retained earnings for the Water Utility Fund have been restated at $11,805*532 and $(8,506,220), respectively, to properly record the property and related accumulated depreciation. Retained earnings for the Meadowlark Golf Course has been restated at $335,710 to properly record the property. Additionally, $17,697,033 of uroperty, plant and equipment acquired by the City's General fixed Assets Account Croup In prior years was recorded as a fund asset in the year ended June 30, 1982, with a corresponding increase to Investment in General Fixed Assets in the accompanying financial statements. 21 CITY OF HUNTINGTON BEACH i NOTES TO COMBINED FIRMCIAL STATEMENTS Note (3) Property, Plant and Equipment 1 Property, plant and equipment net of allowance for depreciation consists of the following at June 309 1982% General Total Fixed Enterprise (memo Assets Funds Only) Land $16,2939193 $ 31462,725 $19,755,918 Buildings 9,386,744 1,232,039 10,618,783 Machinery and equipment 8,6739287 1,255,901 999290188 Improvements other than buildings 4,813,825 40,313,501 45,12Z,326 $39067,049 $46,2E49166 $85,4319215 398,455 14,328,455 Accumulated depreciation -- �'4 L $35,167,042 $31,865,711 $71,932,760 A stimmary of changes in the General Fixed Assets Account Group for the year ended June 30, 1982 follows: Balance June 30, 1981 Prior (As previously Period Balance reported } ALiustment Aeditions Disposals June 30; 1982 Land $ 669,442 $14,9:8,751 $ 715,000 $ -- $16,2937193 Buildings 17,2969217 (8,940432) 11205,421 1743,462 9086,744 Machinery and equipment 5989102 7,051:654 11221,323 197,792 81,673,287 Improv.-rents other than buildings -- 4,677,C60 136j765 4,813,82E $1$,563,761 $17,697,033 $s,278,509 SI72,254 $32,167,049 i 22 E 1 F - i i- t - - i-- t LJ LJ L___1 LJ LJ L__J i-- _i !-J J 'J L_4 -_._E CITY Or HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS i A summary of changes in the Enterprise Find Account Group net of allowance for accumulated depreciation for the year ended June 30, 1982 follows: Balance June 30, 1981 Prior (As previously Period Allowance For Balance reported ) Adjustment Additions Depreciation June 30, 1982 Land $ 310529094 $4109721 $ -- $ -- $ 3,462,725 Buildings 479276 369,028 687017 (33,905) 1,069,i16 Machinery and equipment -- 4982911 271037 (64,556) 706,192 Improvements other than buildings 24,096,761 2,356,362 -,227,599 (110532644) 26,6270z8 $27,196,041 $3,635,022 $2 i$, 6,753 $(1 1, 52,105) 531,$65,711 Note (4) Leases The City has entered into two noncancelable lease and sublease agreements with the Huntington Beach Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the Central Library. Under both agreements, the City is to pay all taxes, insurance, administrative and maintenance costs. Title to the site improvements will pass to the City at the termination of the leases. The City has determined that such ?eases are capital leases and require use of the financing method. Under the financing method, a transaction is regarded as art installment purchase whereby an asset and related liability are recorded. The principal portion of annual rental payments are treated as reductions of the liability. Advance rentals from the Corporation received by the City for lease of the site upon whirl: the facilities are c.anstructed are recorded as deferred rental income in the General Fund and are amortized over the term of the sublease. A description of each lease agreement is as follows: A. Civic Center This involves a noncancelab!-! lease and sublease agreement with the Corporation for the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation for $350,000 advance rental. The term of the lease is from January 15, 1972 to one week after the termination of the sublease. The Corporation has subleased the Civic Center site and Improvements to the City for $854,900 annual base rental. The sublease commenced July 1, 1974 for a term of 30 years or until all debts of the Corporation related to the Civic Center have baen discharged, wFlchever comes first. 23 CITY OF h.;riTINGTON r1Er .y NOTES TO COMBINED F I NANC I AL -.ATEMENTS 6. Central Library This involves a noncancelable lease and sublease agreement with the Corporation for the Central Library. The Cit1 has leased the site to the Corporation for $300,000 advance rental. The term of the lease is from September 11 1972 to one week after the termination of the sublease. The Corporation has subleased the Library site and Improvements to the City for $399,000 annual base rental. The sublease commenced February 15, 1975 for a term of 30 years or until all debts of the Corporation related to the Library have been discharged, Whichever comes First. The following is a summary, by years, of future minimum lease payments under all capital leases, together with the present value of the net minimum lease payments, as of June 30, 1982% General Lonq-Terre Debt Year Ended June 30 Account Group 1983 $ 1,360,000 1984 11360000 1985 1,360,000 1986 10079000 1987 1,2879900 1988 and after 13,7922000 Total minimum lease payments 202466,000 Less amount representing interest (8036,232) Present value of minimum lease payments $12,12¢,768 Changes in the General Long-term Debt Account Group lease obligations during the year ended June 30, 1982 are summarized below% Balance Balance June 30, 1981 Payments June 30, 1982 02,556,57, $12,129,768 24 i.�.. L.... L 1._ 1____ L L L_J L__.1 '_._.! L_J L.__J !1 :—J ___1 rJ Lrl _..1 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATERENTS The fallowing is a schedule of property leased under capital leases by major classes at June 30, 1982: General Fixed Assets Account Group Land $ 669,442 Bu!ldings 13,243,862 Total $13,913,304 Note (5) Cemnitments In 1969, the City entered into en operating lease agreement witi- the Huntington Beach Parking Authority for the lease of certain, parking � facilities. The term of the lease is 24 years or until all of the Parking Authority's 1968 revenue bonds have been retired. Annual base rental payments under the lease agreem-:nt are $170,050. Ownership of the parking facility will remain with the Parking Authority. { Minimum aggregate rental commitments under the agreement are as follows: Year Amount 1983 $ 170,050: 1984 170050 1985 MOP 1986 170050 1987 170050 Remainder 850,250 $1,700,500 The City has entered Into agreements with contractors which generally provide for possible reimbursement to contractors of costs incurred In the construction of water, sewer, and drainage facilities. The extent of such reirrhursement will generally be subsequent fees which are collected from other users of the facilities. =he City recognizes fees as revenue a: they are collected and charges subsequent payments to expenditures as they are made. The City ham reserved a portion of the fund balance In the Planned Local Drainage Fund (Specie] Revenue Fund; for this purpose. 25 CITY OF HUNTINGTON BEACH MOTES TO COMBINED FINANCIAL STATEMENTS Note (6) Investments in Marketable Securities A summary of the City's marketable securities at June 30, 1982 is as follows: Approx. Interest Principal Market Description Rates Maturity Amount Cost Value General Fund City of Huntington Beach 1970 Park Bonds 6.0 1990 7 25,000 24,509 $19A03 Huntington Beach Parking .authority 1968 harking Revenue Bonds 5-5.25 1984-1993 1001000 85,302 77,470 Total Investments $1251000 $1091811 $96,333 Note fly Outstanding indebtedness i A summary of bonded indebtedness outstanding as of June 309 1982 is as follows: Bonds Bonds Bonds Date of Years of Rate of Amount of Outstanding Matured During Outstanding Issr+ Bonds Maturity Interest Orig. Issue June 30, 1981 Year __.. June 30, 1982 General Obligation Bonded 1970 Park Bond 1970 1971-1972 5.00 $ 225000 $ -- 1973-1974 5.25 255*000 -- -- -- 1;75-1977 5-SO 4404000 -- -- -- 1978-1983 5.75 11150V000 430,000 210,000 220,O0D 1984-1995 6.00 33,9 0,000 3,930,000 3,930,000 Total general obligation bonded debt $6,00C3000 0,360,000 $2101000 a4 1, 50,040 26 l _ _. i _-• 1-_- - I... L_ .: L-_-� 1__j L__' L__! l ! !__J i __1 ?__? i _ 1 _ C I TY OF HUM.'1 NGTOM BEACH NOTES TO COMBINED FIAANCIAL STATEIIEHTS Bonds Bonds Bonds Date of Years of Rate of Amount of Outstanding Matured During Outstanding Issue Bonds hlaturitY Interest Orig. Issue June 30, 1981 Year .tune 30, I 2 Issue Revenue Bonds Water Utility Fund - 1963 Water Revenue Bond 1963 1965-1974 4.75% $ 700,000 1975-1978 3.25 4609000 -- -- 1979-1981 3.30 400,000 1401000 140,000 -- 1982-1983 3.40 3009000 295,000 -- 295,000 1984-1993 3.50 1,890,000 1,334000 bo,00o 1,2710930 Total Revenue Bonds (a)(b) $ 53,7 0,000 $1 6, b,000 $200,000 1,3bb,400 Less current portion �� 150,000 Lori term portion $1,y1u,000 (a) The water revenue bonds do not represent a general liability of the City of Huntington Beach. (b) At June 30, 1982, there were $1:350,000 authoriztd gut unused 1963 water revenue bonds. There are a number of limitations and restrictions contained In the various bond indentures. The City Ia in compliance with all limitations and restrictions. The following is a schedule of required principal payments during the next five fiscal years and thereafter: General Water Total Year ending Obligation Revenue (mom June 30 so lds Bonds iniyl �1283-" $ 2209007 $ 150000 $ 3709000 1984 2359000 145,000 380t000 1585 245,000 160,000 405,000 j 1986 2609000 160,000 420,000 1987 180,000 170000 4509000 ^,=.,alnder 2191C,000 781,000 63, 91,000 $43150,00'' $1 b,5 6,aao $5,716,000 �7 I CITY of HUNTiNGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Note (8) Meadowlark Golf Course Note Pa ay ble In 1975, the City er-tered into an agreement to purchase the Meadowlark Golf Course from an independent party for a total purchase price of $3,2P0,000. Terms of the agreement called for an initial down payment of $9280000, with the remaining $2,272,000 In the form of a long-term 7 percent note. At June 30, 1982, the balance of the note was $1,866,997. A schedule of yearly principal and interest payments is as follows% Year Amount 1983-2001 $1501,000 2002-2008 200,000 2d09 ELM f i with the above purchases the City has leased the of tour..., operation to an outside c-t far 4 - ears at a In lease In connection h p : Y 3 oP R Y 3 �► , minimum a se 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 $9282000, the Cosnty 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 maintilned as open space. The note payable is collateraliteo by suture revenues and does not represent a general obligation of Lhe City. Note (9) San Joaquin Reservoir In 1979 the City and sevcral other local cities and water districts purchased the San Joaquin Reservoir. The City Is paying a portion (13.50) of the debt service for the 19A1 ccnstruction of the reservoir which is partially based on Its percentage ownership (13.1%). The construction bonds will be fully redeemed in 1992. Operating and Improvement costs are also allocated to the owners In the same proportion. In the event of default. the expenses and/or debt service payments shall be reallocated among the remaining non-defaulting owners In the proportion to the percentage Interest owned a3 though the party in default did not exist. A 28 r C 1 TY OF HUNT 1 NGTON BEACH NOTES TO COMB,tiEO F i NANC i AL STATEMENTS At June 30, 1982, the City�s total principal payments due under the purchase agreement are $488,395. Annual principal and Interest pa-pizen2s for the next five years and the rcnainder of the agreement are art follows: Year Amount 1983 $ 56:361 1984 AM 1985 57,318 1986 57.714 ML, 1587 56,018 1988-1992 296,988 Total Payments $585,314 The City has recorded its portion of the reservoir as a fixed asset in the Water Utility Fund. i� Note (10) Litigation t There are certain legal actions pending against the City which have arisen in the normal course of operations. In the opinion of management and the City Attorney, the ultimate resolution of such action is not expected to have a significant impact on the financial statements or operations of the City. Note (11) 3an2ower Grant Fund '.: . The accumulated deficit of $206,162 in the Manpower Grant Fund was recorded as a deficit transfer to the General Fund at June 30: 1582 since the expenditures incurred oere not fully reimbursed under the Comprehensive Employment and Training Act (CETA). -Y 5 20 � �Z CITY OF HUHTiHGTON BEACH (: NOTES TO COMBINED FINANCIAL STATEMENTS ?tote (12) Segments of Enterprise Activity The City has two Enterprise Funds which are run on the same basis as commercial enterprises -- Water Utility and Meadowlark Golf Course. The key financial data for the year ended June 30, 1982 for those funds are as follows: ' ~ Water Meadowlark r Utility Golf Course iota] - -_ "._ Operating revenues S? 5,739,:49 $ 1839683 $ 5,923,032 Operating expenses: Depreciation 10113020 41,085 1,152,105 Other ,4,902,311 -- 5 289 730 6,013,331 ;�1,�g5 598 $ (131,384) Qpzrating inco�rte (loss} $ (273,982} $_ 142 - = Operating transfer to other fund $ 387,419 $ -- $ 387,419 L..- Net intone $ 81,797 $ 10 645 $_ 92,442 { Total assets 4 1 1 0 , M61 06 018$3 , 7 S7 $3 53 $37,7 Bonds and and notes payable (long-term) 1,866,89S 1 84 68 r� P Y 9- } $ $ 7. 7 S 3,71b,582 Fund equity $311273,511 $1,621,639 $32,895,150 Acquisition of fixed assets 2 186 -- q S � .753 S_ $ 2,186,7;3 Capital contributions received $ 1,077,886 $ -- $ 1,077,886 .: s,� Net working capital $ (172,019) $ 32,420 $_Li _ 9 X5.99) - y_- 4 R�1 F`. 30 I 1 1 i Combining Financial Statements i I t _ 1 __-. L.. -: l L_ 1___ i i -_ i _ 1 i 1 .-- --i CITY OF HUNTINGTON BEACH STATEMENT I General Fund Statement of Appropriations, Expenditures and Encumbrances Budget and Actual Year Ended June 30, 1982 w Appropriations Expenditures Encumhrancas Variance - Percentage of Original Budget Revised Personal paint. Capital Total Outstanding Total ExVanditurez Favorable Appropriation Budget Changes Budget Services Operations outlay Expenditures Encumbrances and Encumbrances (Unfavorable) Expended � Expenditures: I Administrative: City Council $ 97,638 $ (457) $ 97,181 $ 49,104 $ 28,277 $ -- $ 77,381 $ -- $ 77081 $ 19,600 I..62 Non-Depzrtmental 5,970,400 (74,724) 5,895,676 -- 4,013,719 -- h,613,719 779889 410919608 11804,068 65.4o E Administration 415,668 (1,410) 414,258 332,793 6 1 -- 402,384 3,554 405,930 tl 320 97,b9 $, + �3:70� 76,591 �+07,1 55 3�g7 ,1�11,50 -- -V,TV93,484 1,4 3 ,5�4,927 1, 3+ 32,,1188 71.40 Support: Administrative Services 1,9959784 111,343 2,107,127 11521,865 499,473 5,891 21027,229 283,774 21056,DO3 51,124 97.57 � I Attorney 509,970 72034 582,304 487,373 97,442 -- 5843,815 .,991 586,806 (4,y02; 100.;7 Clerk 213:437 (ls973) 2119464 141075 57,850 -- 159,625 6 199,631 11,833 y4.4L, Treasurer 1 024 651 34 712 1,059,363 256,647 585,708 -- 842 _ 6 842,424 �216032 75.52 3,7�i38r2 21 3,- 50 258 21407*660 1,2 0, 73 5,a91 31 5 ,O2 30�,,40 -3-jU4v864 275,394 93.04 Community Services: Community Services 4,598,853 78036 49676,989 3,4149045 986,154 -- 41400,199 70,601 41470000 2C6,189 95.60 Developfrr:nt Services 1,920,443 (21966) 1,917,477 17725,413 371,446 -- 1,7523459 93,,0044 1,765,903 1519574 y2.09 1 Public Works 9,792,708 399 584 10092,292� 5.7912447 3 48 058 14,263 9� 498.519 8 340,005 �o.b� 16,312,00 j 16,786,75B 10,930,905 ,571, 5 1 v2 3- 15,51 , 2 572,1 1 ,0 ,990 697,� 95.E Public Safety: Police 13 0 50 A65 839899 139234,564 11052,902 11251,959 3016 13007,977 128,120 13,2369097 (1,533) 100.01 Fire _O,b 217,309 20 t 90,03 18,88 752,185 1,60a.266 7 20, 29.2a 2a0, 21 20,639,2,300 86 250,3k7 98.83 Total Expenditures $47,212,276 $83t,888 $48,044,164 $32,472,647 $11,525,984 $24,� $44,093,600 $894,867 $44,988,46? ��Si S y3.h 31 CITY OF HUNTiRGTON BEACH STATEMENT It Special Revenue Funds Combining Balance Sheet June 30: 1982 HUD Park Rehabilitation Special Planned Federal Federal Acquisition Special Loan and Gas Library Local Revenue Manpower Other and Operational Capital Interest Tax Service Sewer Drainage Sharing Grants Grants Development Reserve Outlay Subsidy Total Assets Cash & term deposits $2,622,218 $-- $2,334,687 $29065,458 $6,143 $ -- $191,085 $19638,436 $1,599,346 $19522,121 $242,336 512,222,430 Interest receivable 33,396 -- 29,743 26,317 -- -- -- 24,059 20,369 199465 -- 153,s49 Due from other governments, net 6,503 -- 491,261 -- -- -- 1439082 95,264 -- 64 -- M,174 Rotes receivable, net of loan loss reserve -- -- -- -- -- - -- -- -- _ 13,547 :3,54/ Total assets $2s662,117 $-- $2,855,691 $2,091,775 $6 4 $ -- $334,167 $1 57 5 $?,6191715 $1,5411650 $256,483 $13ii25,500 Liabilities and Fu:id Balance Liabilities: Accounts payable $ 243,988 $-- $ 14,960 $ 25,567 $-- $ -- $ 33,503 $ 1203,881 $ 8,500 $ 57,287 $ -- $ 255,06b Accrued payroll -- -- -- -- --- -- 2,668 2,339 -- -- -- 5,007 Deposits 1,035 -- -- -- -- -- -- 682 -- -- -- 1,717 Due to other Funds -- -- -- -- -- -- -- 65 -- -- 05 j Total liabilities 26,023 -- 14,960 25,567 -- -- 6,171 1239,967 8,500 57,287 -- 262,475 32 ice: i..o. i . .- 1__-- ► _ t__.: l._..: ! __' 1___-' L---I L.__I L._-J t_.I !.. i � ..--.i - 1 J l I _-I I CITY OF HUNTiN.TON BEACH STATEMENT 11 Special Revert-ie Funds Combining Balance Sheet June 30, 1982 HUD Park Rehabilitation Special Planned Federal Federal Acquisition Special Loan and Gas Library Local Revenue Manpower other and Operational Capital interest Tax Service Sewer Drainage Sharing Grants Grants Development Reserve Outlay Subsidy Total Fund balances: Reserved for: Encumbrances 36,654 -- k1,970 261,338 6,143 -- 199,330 394035 108,250 5960944 -- 1,b44,568 Amounts due beyond one year -- -- 437,500 819257 -- -- -- 51, 57 Reimbursement agreements -- -- -- 635*410 -- -- -- -- -- -- - -- 635,4l0 Disaster Relief -- -- -- -- -- -- 52,249 -- -- -- -- 52,245 Unreserved: Designated for: Future development -- -- -- 31,226 -- -- -- 47,000 -- -- -- 78,226 Undesignated 2,599,440 -- 2,361,261 1,261 i i 8 2 4 � 36,417 i ill 2 1,502,965 $87,439 25614d3 __21 8y3,415 Total fund balances 2,636,094 -- 2,840,731 2,066,208 6t143 -- 327,996 1,633,792 1,611,215 1,484,363 256,483 12,863,025 Total liabilities and fund balances $2 662 11 $ -- $2 8, 55,69t $2 9, 91,775 Y6,�1 i -- � 167 $,1,,j57.759 $1 6, l9,liS $1 4,5 1,650 $LS_ 1 $13,1252500 33 CITY OF HUNTiNGTON BEACH STATEMENT ill Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances i Year Ended .tune 30, 1982 i j HUD Park Rehabilitation: Special Planned Federal Federal Acluisition Special Loan and Gas Library Local Revenue Manpower Other and Operaticnal Capital Interest Tax Service Sewer Drainage Sharing Grant Grants Development Reserve Outlay Subsidy iotaI � i Revenues: Licenses and permits $ -- $ 34v515 $ 34039 $113,417 S-- $ -- $ -- $ 83,401 $ -- -- $ -- 2br,12Z Use o` money s property 3262966 -- 347,213 :'96,098 851,258 -- -- 359096 237,855 113,552 12s5b7 ;'9,3a5 Revenue from other agencies 3,338076 -- -- -- 1:766,463 26,521 1,306,727 -- -- -- -- 61 436,267 Charges for current services -- -- -- -- -- -- _ -- 162,839 -- - - 162,839 Total revenues 3,665,542 34,515 382,002 409,515 11851,721 26,521 .1,306t72Z 605,636 237,855 113,592 12,_987 6,646,613 Expenditures: Administrative -- -- -- -- -- -- -• -- -- 211 -- 211 Support -- -- -- -- -- -- -- -- 45,665 -- 4516b5 Comun i ty services -- -- -- -- 592 -- -- -- -- 11051,562 -- 1,052, %4 Public safety -- -- -- -• -- -- -- -- 122,616 954,434 -- 1,077,050 Highways and street 2,656,408 -- -- -- -- -- -- -- -- -- -- 2,65o,40u Drains and sewers -- -- 396,978 135,0?7 -- -- -- -- -- -- -- 53210j� Park development -- -- -- -- -- -- -- 196841,621 Loan subsidies and loan losses -- -- -- -- -- -- -- -- -- -- 36,575 36,57!) Grants -- -- -- -- -- 42,858 1,213,955 -- -- -- -- 1,256,613 Miscellaneous -- -- - -- -- -- -- 143 -- 143 I fotai expenditures 2,656,408 -- 396,978 135,077 592 42,858 1,213,255 1,684,621 122,616 2,052,015 38,575 6,343,055 I 34 -J L! L__1 � i �. 1 1 ..... 1 --A -- CITY OF HUNTiNGTON BEACH STATEMENT III Special Reveunue Funds Ccmbining Statiment of Revenues, Expenditures and Changes in Fund Balances Year Ended .tune 30, 19B2 HUD Park RehoW lltation Special Planned Federal Federal Acquisition Special Loan and Ga3 Library Local Revenue Hanpovicr Other and Operational Capital Interest Tax Service Sewer Drainage Sharing Grant Grants Deveiowent Resevve Outlay Subsidy Total Excess (deficiencies) of revenues over expenditures 19009,134 ?4,515 (14;975) 2749438 1,851,129 (16,337) 92072 (1,078,3d5) 115,239 (1038,423) WISP) 3022y18 Other financing sources operating transfers in (out) (673,205) (341515) (23 51} - -- 1 4 3 2 23,951 81a 521) Excess (deficiencies) of revenues and operating transfers in over expenditures and operating transfers out 135,929 (14,976) 274,438 (3064) (16,337) 08,821 (1,078,985) 1152239 (191,031) (1,637) (511,bD31' Fund balance at .tune 30, 1981 2,300,165 -- 29855,707 1,791,770 9,207 (189,825) 259,:75 2,712,777 114959976 11675094 258) 120 13, 168,46o Defic!t transfers out -- -- -- -- -- 206,162 -- -- -- -- -- 206,162 Fund balance at .tune 30; 1982 $2,636,094 $ -- $2 840 ]31� $2,066,208 $ 6,143 Y32 $1,633,792 $1,611,215 $1 48i 4,363 y256,483 $12,863,425 I I I 35 CITY OF HUNTINCTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures anI Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Park Acquisition and Federal Revenue Sharing Federal Manpower Grant Other Grants _ 0evelopment Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) and et Actual (unfavorable) L Revenues:Licenses and permits $ -- $-- $-- $ -- $ '- $ -- $ -- $ -- $ -- $ 960,000 $ 83,401 $(876,575) Use of money and property -- 85,258 85,258 -- -- -- -- -- -- 252,500 359,396 1061870 Revenue from other agencies 1,8309000 1,766,463 (63,537) 46,245 26,521 (19,724) 4,067074 1,306,717 (2,7619247) -- -- Charges for current services -- -- -- -- -- -- -- -- -- 70,000 162,839 jz-h39 Otherrevenues -- -- -- -- -- -- - -- -' -- ' Total revenues 1,830,000 1,351,721 21,721 46,245 26,521 (19,724) 4,067,974 1 306 2 (2 76i 24 ) 1,282,500 b05,636 (67b,664) Expenditures: Administrative -- -- -- -- -- -- -- -- -' -- -- Support -- -- -- -- -- -- -� -- -- -- - -- Community services 618 6,735 (63,117) -- -- -- -- -- -- -- Public safety 6,143 -- 63,143 Highways and street -- -- -- -- -- -- -- -- -- -- -- Drains and sewers -- -- -- -- -- -- -- -- -- _- _- Park development -- -- -= -- -- -- -- -- 4,676,778 2,078,960 2,597,bl8 Loan subsidies and ::an losses -- -- -- -- -- -- -- -- -- -- -- Grants -- -- -- 489205 42,858 5047 4,759,864 1,413,285 3,346,579 -- -- -- Miscellaneous -- -- -- -- - -- -- -- - -- -- Total expenditures 6,761 6,735 26 48,205 42,858 5,347 4,759,864 1 A�zB5 3,246,579 6,579 4,676,778 2,08,90 2,597,816 36 f i f I 1 f 1 1 , i ' 1 i 1 1 i A - 1 i._- _ ' L L__ L. _.1 i . i____l i-J }_-i _.I __.1 P CITY OF HUNTINGTON BZAGH STATEMENT IV Special Revenue Funds Combining Statement of R_venues; Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Park Acquisition and Federal Revenue Sharing Federal Manpower Grant Other Grants Development Budgetary Variance Dpsdgetary Variance Budgetary Variance Budgetary Variance Basis Favcrable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) budget Actual Unfavorabl Excess (deficiencies.. revenues over expenditures 1,8232239 11844,986 21,747 (19960) (16037) (14,377) (691,890) 0 06,558) 585 032 (3,394,278) (1,473,324) 1,5201954 Other financing sources (uses) (1,550,000) (1,854,193) (304,193) -- - -- - (23,951 (23,951) -- - -- Excess (deficiencies) of revenues and other sources over expenditures and other uses 273,239 (99207) (282,446) (i996O) (16 037) (14,377) (6g19890) (1300rg9) 561,3$1 (3,394,278) (1,473,324) 1,920,954 � Fund balance at June 30, 1981 91207 99207 -- (1899825) (189,825) -- 2$99175 2599175 -- 2,D 2,777 2,712,777 -- Deficit transfers out _ - - -- -- 206,162 206,162 -- - -- Fund balance at June 30, 1982 I budgetary basis 282,446 -- (282,446) 091085) -- 191085 (432,715) 1289666 561,381 («3`.9501) 11239,453 1,920,954 Aed encumbrances outstanding -- -- -- I! June 30, 1982 6,143 6,143 199,330 199,330 - 394,339 394,339 -- Fund balance at Jane 30, 1982 446) $(1 1 8 ) $ $1'�1 8 $ 2 � 8 GAUP basis $ 288,55? $ 6,143 $(282, 9 ,7 5 -- � j 5 { 33,3 5) $327,996 $ WRI $ 287 162) $ 6 3 1 2 $1,920,y54 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Special Gas Tax Library Service Sewer Planned Local Drainage Budgetary Variance Budgetary Variance Budgetary Variances Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorablel Budget Actual (Unfavorable)_ Budget Actual (Unfrvorable) Budget Actual (0favorable) Revenues: Licenses and permits $ -- $ -- $ -- $100,000 $34,515 $(65,485) $ 125,000 $ 34,789 Y(90,2ll) $ 415,000 $1139417 $Oal,583) Use of ..,oney s property 200,000 326,966 126,966 -- -- -- 275000 3479213 72,213 250,000 29b,098 46,096 Revenue from other agencies 4,502,464 3,338,576 (1,163,888) -- -- -- -- -- -- -- -- -- Charges for current services -- -- -- -- -- -- -- Other revenues Total revenues 4.7021464 3.6rj,542 (1,036,922) 100,000 34,515 (65,485) 400,000 382,002 (17,998) _ 725,000 409,515 {31-L 85, Expenditures: Administrative -- -- -- -- -- -- -- -- Support -- -- -- -- -- -- -- Community services -- -- -- -- -- -- Public safety -- -- -- -- -- -- -- -- -- -- -- -- Highways and street 59796,702 216939062 39103,640 -- -- -- -- -- -- -- -- Brains and sewers -- -- -- -- -- -- 10789148 438048 639,200 12391,263 396,415 �7y41846 Park development -- -- -- -- -- -- -- -- -- -- -- - Loan subsidies and loanlosses -- -- -- -- -- -- -- -- -- -- -- -- Grants -- -- -- -- -- -- Miscel'aneous - -- -- -- -- -- -- �- -- -- -- -- Total expe.iditures 5,796,702 2,693,062 3,103,640 -- -- -- t,0 pl, 8 438,948 639,200 391,263 396,415 994,846 3� L_.i i_ _? l__-_1 t_ tMJ -__J -_.I C i lY OF HUNT f NGTON BEACH STATEMENT IV Special Rev^.nue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Special Gas Tax Library Service Sewer Planned Local Drainage Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Easis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (unf'avorabie) Excess (deficiencies) of revenues over expenditures (110949238) 972,480 2,066,718 1009000 349515 (65:485) (6�8,148) (569546) 621,202 (666,263) 13000 679,363 Oth;r financing sources (uses) 685 000) (`,73,205) 11 95 (100,000) {I4,515) 65,485 -- -- _-- - -- -- Excess !deficiencies) of revenues and other sources over expenaitares and other uses (197799239) 299,275 2,07895i3 -- -- (678048) (56,946) 621,202 (666,263) 13000 09,3o3 Fund balance at .tune 30, 1981 2,3009 165 2000065 -- -- -- -- 29855,707 298559707 -- 1,791,770 1,791,770 -- Deficit transfers out _ -- -- -- -- -- -- -- -- Fund balance at June 309 1982 i 0 -- -- -- 2 1 2098,761 621 202 1 12 0 11049870 b' b budgetary bass 520,327 2,399,440 2, 78,513 , 77,559 , , 5,5 7 /9,3 3 Add encumbrances outstanding June 30, 1982 _ 36,654 36,654 _ -- !- - 41,970 41,970 - 261,338 261,338 Fund balance at June 30, 1982 GAAP basis a 557 581 $2,636,094 $2 07, 8,513 $ -- *� -- s -- 2 2, 19,529 52,840,7 1 $621,202 $S 3� 86,845 $2,066,208 W9,363 39 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds 1 Combining Statem?nt of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 HUD Rehabilitation Loan Operational Reserve Fund Special CaRital Outlay and interest Subsidy Total Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Sasly Favorable Budget Actual (unfavorable) Budget Actus) (Unfavorable} Budget actual (Unfavorable) Budget Actual (Unfavorable) i Revenues: Licenses and t 660� 122 000 266 1 ,8 n permits $ -- $ -- $ -- $ -- $ -- $ .,_ $ -- $ -- $ -- � � $ � $( ,393 7 ) Use of money and property 150,000 237,855 87,855 140,000 113,592 (26,408) -- 12,987 123,987 1,267:500 1 ,M,365 511 ,865 Revenue from other agencies -- -- -- -- -- -- -- -- 10,446,683 6,438,287 (4,008.396) Charges for current services -- -- -- -- -- -- -- -- -- 70,000 162,839 32,639 Other revenues 10,000 -- (10,000) -- _ -- 10,000 -- ( 10,000) Total revenues 150,000 237,855 87,855 150,000 113,592 (363408) -- 12,987 12,987 13,454,183 8,646,611 (4,867,570) Expenditures: Administrative 1739100 -- 173,100 250 249 1 -- -- -- 173,350 249 173,101 Support -- -- -- 333,024 88,684 (5,660) -- -- -- 83,024 68,684 t5.660, Community services 179940 -- 17.940 1,697,120 1050,020 347000 -- -- '- 1,715,678 1,3569755 356,521 Public safety 409525 230,866 (190,341) 19415,027 1,209,863 2059164 -- -- -- 11461,695 11440,729 20,900 Highwals and street -- -- -- -- -- -- -- -- -- 59796,702 7,69310b2 3,103,640 Drains and sewers -- -- -- -- -- -- -- -- 2,4698411 835063 1,6314,048 Paris development -- -- -- -- -- -- -- -- 49676,778 2,078,900 2,597,818 Loan subsidies and loan losses -- -- -- -- -- -- 38,575 (38,575) -- 38,575 OP,575) Grants -- -- -- -- -- -- -- -- -- 49808,069 1,45b,143 3,351:926 Miscellaneous -- -- -- 91,948 143 %805 -- -- _ 9,948 _ 143 9,dU5 Total expenditures 231,565 230,866 699 3,205,369 2 64, 8,959 556,410 38,575 (38,575} 2),194,655 9 88.r.6 11,20S,952 40 -A - is L-._} L-_-1 L_1 E-----1 1__ f l--J --i CITY OF HUNT1HGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Sudgetary Basis Actual Year Ended June 30, 1982 HUD Rehabilitation Loan Operational Reserve Fund Special Capital Outlay and Interest Subsidy Total Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Excess (deficiencie3) of revenues over expenditures (819565) 61,989 88,554 (3,0+5936-0) (29535067) 520002 -- (259588) (25,588) (7,7409472) (1,342,050) 0,398,422 Other financing sturces (uses) -- -- -- 1,723,200 1,747,392 24,192 -- 23,951 23,951 (511,$00) bIt ,r21) 02,i211 F-xcess (deficiencies) of revenues and ocher sources over expenditures and a:her uses (819565) 61989 88,554 (19332,i69) (787,975) 5449194 -- (1,637) {1.637) (8,352,272) {2, i56,571) 6, 195,701 _ Fund balance at .iune 30, 1981 1,495,976 1,495,976 -- 1,675,394 1,675,394 -- 258,120 258,120 -- 130681466 i3,168;466 -- Deficit transfers out -- -- -- _ -- -- -- ^- -- -- 206,162 206,161 E� Fund balance at ►' .lone 30, 1982 budgetary basis 1,4141411 1,502,965 88,554 ?4392i5 887,419 544,194 258,120 256,483 (1,637) 4;8161194 11,218,057 o9401,8b3 Add encumbrances i outstanding _- I .tune 30, 1982 108,250 108,250 � 3 4 596.944 -- -- -- : -- 1,64-4,968 1,644,968 _ Fund balance at June 30, 1982 483 $(1 6 ) $ 6,461 162 $12,863,025 $6,401,36_ GAAP basis $1,522,661 $1�611,215 $88,554 $ 940,169 $1,484,363 $544 194 $258.120 $256. 37 ' ° L 4 41 CITY OF HUKTIRGTON BEACH STATEMENT V Debt Service funds Combining Balance Sheet .tune 30, 1982 1970 Park Bond Interest and Bond Redemption Assets Cash and term deposits %tA Property taxes receivable 12 ; 2 Totai assets $212820 Liabilities and Fund Balance Liabilities $ -- Fund balance 21,820 Total liabilities and fund balance $2�820 See accompanying accountants' report. 42 e i• a� s� r.. ace. �--- rr-- _ C_ i— ' 1 1 _ I I I —A __A _ CITY Or HUNTINGTON BCACN STATEMENT VI Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1982 1970 Paris Bond Interest and Redemption Fund Revenues: i General property taxes $419,638 Total revenues 419,638 Expenditures: Redemption of matured bonds 210,000 Interest 260,525 Miscellaneous 461 Total expenditures 470,986 O,tficiency of revenues wer expenditures (51,348) Fund balance at June 30, 1981 73,16$ Fund balance at June 30, 1982 $_ 21,820 43 CITY OF HUNTINGTON BEACH STATEMENT V11 Debt Service Fund Combining Statement of Revenues, Expenditurr-�s, and Changes in Fund Balances - Budget and Actual Year Ended .tune 30, 1982 1970 Park Bond Interest and Redemption Fund uarlance- Favorable Rudget Actual (Unfavorable) Revenues: r General property taxes $4Z51000 $419,638 ${55,362) Total revenues 475,000 419,638 (55,362) Expenditures: Redemption of matured bonds 205,000 210,000 (51,000) Interest 265,000 :60)525 4,475 Miscellaneous 500 461 39 Total expenditures 470,500 470,986 (486j Excess (deficiency) of revenues over expenditures 4,500 (51048) (75,848) Fund balance at June 3n, 198: 73,168 73068 -- Fund balance at June 30, 1982 $ 77,668 $ 21L$20 S{55,848) 44 -J i_----I n- I s Page Left Blank Intentionally i i CITY OF HUNTINGTON BEACH STATEMENT VIII Enterprise Funds rambining Balance Sheet June 30, 1982 Water Meadowlark Utllit22.• Golf Course Total Assets Current assets: Cash and term deposits 3 4,714,259 $ 139,386 $ 4,833,645 Accounts receivable-trade, net of $2000 allowance 3753,688 -- 375,688 Deposits 32,269 -- 32,269 Interest receivable 65,E+35 1,670 67,105 Total current assets 5,187,651 141,056, 5,328t701 Property, I.lant, and equipment, net of allowance for depreciation 23,4719806 3093005 31,865,711 Restricted assets - cash with fiscal ;gent � 511.600 - 511,600 Total assets $.342171,057 $37,706,018 I 45 ITY OF HUNTIMGTON BEACH STATEMENT :iili Enterprise Funds Combining C ;ance Sheet .tune 30, 11082 I Water Meadowlark Utillty Golf Course Total i Liabilities and Fund Equity Current liabilities payable from current assets): Accounts payable $ 328,815 $ -- $ 328,815 Customer deposits 367,559 -- 367,559 Accrued interest payable -- 46,325 46,325 Accrued paytol1 133,416 -- 133,416 Due to other funds 636 -- '36 Current installment of long-term notes payable 37,500 19,310 56,810 Current liabilities (payable from restricted assets): Current installment of bonds payable 150,000 -- 150,000 Accrued interest pa;abie 12,725 -- 12.725 Total current liabilities i,03Or651 65,635 1,096,286 Long-term liabilities: Notes payable net of current installment 450,895 1,847,687 21298,592 Bonds payable in future years net of current installment 1,4!6,000 _ -- 11416,000 Total liabilities 2,897,546 1,913022 4,810,868 Fund egdi t;;: Contributed capital: In aid of construction 289005,111 -- 28,065011 From general Fund 92,608 11 267,324 1,359,932 Total contributed capital 28,097,719 1.26i,324 29,365 043 Retained earnings: Reserved for the retirement of revenue tends 348 875 348,875- - Unreserved/undesignated 2,826,917 354,315 3,181,232 Total stained earnings 3,175,792 354,315 3,530,107 Totai fund equity 31,273.511 1.621 6?9 32,895,150 Total liabilities and fund equity 4342171,057 $3,53k-961 $37,706,018 46 I CITY OF HUNTINGTON REACH STATEMENT IX Enterprise Funds Combining Statement of Revenue, Expenses and Changes in Equity Year Ended .tune 30, 1982 Water Meadowlark Utility FundGolf Course Total Operating Revenues: Charges for current service $ 5,6409482 $ -- $ 5,64Q,482 Use of money and property 183,683 163,683 Other operating revenues 98,867 g8,8i,7 Total operating revenues 5,739,349 183,683 5,923,032 Operatinq expenses: Source of supply 1,i64,9o8 -- 1,164,908 Pumping expense 1,0 80205 -- 1,418,205 Water treatment 34,158 -- 34,158 Transmission !nd distribution 413,049 __ 422,049 Administrative and general 1,0183,794 -- 1,018,794 Contributions to general fund In lieu of taxes 844,197 -- 8449197 Depreciation 1,111,020 4%HE 1,152,105 Total operating expenses 61013,331 4148; 6,054,416 Operating income (lass) (2732982) 142,598 (131,384) Non-operating revenues (expenses): Interest inco-e 7301498 -- 730,498 Other revenue 87,9fi8 __ 879968 Interest expense (75.268) (131,951) 20 221y j i Total non-operating revenues (expenses): 743.198 (13. 1,953) 611,245 I Income before operating transfer 469,216 10.645 4?9,861 Operating transfer to other fund (387,419)ze_ __ 387.41 ) i Net Income 61,797 10i645 92,442 I 4) --� CITY OF HUnTiNGTOH BEACH STATEMENT IX Enterprise Funds Combining Statement of Revenue, Expenses and Changes in Equity Year Ended June 30, 1982 j Water Meadowlark Utility Fund Golf Course Total Retained earnings at June 30, 1981, as previously stated 11,502,844 79960 11,510,804 Prior period adjustment, Increase (decrease) (8 506.220) 335.710 (8 170 5t0) Retained earnings at June 30, 19819 restated 2, 624 343,670 ,670 3,3 �i1,2y Increase in reserve for retirement of revenue bonds 97,371 -_ 97,3.9 Retained earnings at 3une 30, 1982 71 S3_175,792 $354,315 $ 3,530,107 Contributed capital June 30, 1981 $15,214*301 $11267024 $10,481,625 Contributions by developers: ers: Additional contribution unrecorded in prior years 11,805,532 -- tt,805,532 Contributions for year ended June 30, 1582 1,077,886 1,077,886 Contributed capital, June 30, 1982 $28_097,719 $13267,324 S2S,3b5,ti43 i f I I 48 CIT`l OF HUNTINGTON BEACH STATEMENT X Enterprise Funds Combining Statement of Changes in Financial Position Year Ended June 30, 1982 water Meadowlark Utiiity Golf Course Total Sources of .*rking capital: Operations: Net earnings $ 81,797 $102645 $ 92,442 Item not requiring working capital: Depreciation 11111,02U 41,085 1,152,105 Work t provided Working capital p o ided from operations 1092,817 51,730 11244,547 I Capital contributions received in the current year 1,077;886 -- 1,077,886 Increase in reserve for revenue bond retirement 97,371 - 97,371 Total sources of working capital 2,368.074 51,730 2,419,804 Uses of working capital: Addition of fixed assets 2,186,753 -- 2,186.753 Increase in restricted assets - cash with fiscal agents 106,096 -- 106,096 Reclassification of note payable 371,244 -- 37,244 Reclassification and redemption of long-terin bonds payable 210,000 19,310 229,310 Total uses of working capital 2j540,093 19,310 2,559,403 Net Increase (decrease) in working capital $ (172,019) $32,420 $ ((139,599) 49 6=. L....� i~ ( i i 1 1 i F f i 1 1 1 l - # - -_ - L_ L L.-_.i L-. J L__1 L__1 t-_A __j ___I 1 CITY OF HUNTINGTON BEACH STATEMENT XI Internal Service Funds Combining Balance Sheet June 30, 1982 Public Employee Worker's Liability Health Compensation Self-Insurance Se;f-Insurance Self-Insurance 'fatal _Assets Cash and term deposits $2,414,733 $56:1520 $29271,731 $5,247,y84 Interest receivable 31,875 6,814 28,766 67,455 Due from other Funds -- -- _ 17,534 17,534 total assets $2,442,603 $572.334 $21318,031 $S 332 3 Liabilities and Fund Equity Liabilities: Accrued payroll $ $ -- $ 1,170 $ 1,170 Acccunts payable -- -- 2,932 2,932 Insurance claims payable 1,307,362 303,719 1,431,278 3,02,359 Total liabilities 1,307,362 �03,719 1,4+ 5,380 31046,461 Fund Eger i ty: Retained Earnings: Reserved for future insurance claims 750,000 -- -- 750000 Unreserved 385,246 268,615 882,651 1 36 5i2 Total fund equity 1,135,246 268,615 882,651 2,286,512 Total liabilities and fund equity $2,442,608 $572,334 $2,318 031 $5,332,973 50 CITY OF HUNTINGTON BEACH STATEMENT XI1 Internal Service Funds Combining Statement of Revenues, Expensas and Changes In Retained Earnings For Year Ended June 30, 1982 Public Employee marker's Liability Health Coi-pensation Self-Insurance Self-Insurance Self-insurance Total Operating revenues: Charges for current service $ 164,267 $1,198,2€35 $ 544,706 $1,907,258 Total operating revenues 164,267 1,198,285 544,706 1,907,258 Operating expenses: Worker's compensation claims -- -- 1,4379758 Employee medical claims -- 13,109,035 -- 1,10q9035 Administrative and general -- 77,232 58,817 1369049 Liability claims 702:223 -- -- 702,223 Other -- -- 4,621 4,621 Total operating expenses 702,223 12186,267 1,501,196 3,385,686 Operating income (loss) (537,956) -12,018 (956,490) (1,482,428) Non operating revenues: Interest income 371,087 84,417 345,157 800,661 Net income (loss) (166,869) 96,435 (6112333) (68?,767) Reta=ned earnings at June 30, 1981 1,302,115 172,180 1,493,2L4 2,968,279 Retained earnings at June 30, 1982 $1,135,246 $ 268,615 $ 882,651 $2,286,512 I 51 I - - � - A ---a i ---= L--- L__: i__. L_ LV_l i - '--A l_! 1._-.i i_-.- 1 �...._1 �.__1 L- 1 `--A A ---1 —A __j __..i -" J C I TY OF HUNT I NGTON BEACH STATEMENT XIII Internal Service Funds Combi-ing Statement of Changes in Financial Position Year Ended June 30, 1982 Public Emp 1 oyee I,'orker's Liability Health Compensation Self-Insurance Self-Insurance Self-Insurance Total Sources of working capital: Operations: Met income (loss) os - { ) $(166,869) $ 96,435 $(611 333) S (68l 6 ) Increase (decrease) In working capital s(166,869 $ 9_6435 $%611,333) $ (681 76 ) Changes in components of working capital: Increase (decrease) in currant assets: Cash and term deposits $ 169:107 $148,687 $ 29,842 $ 347,636 Interest receivable (5091) 351 (7,910) (12,950) Due from other funds -- - 3,812 Total. Increase In 3:8 12 current assets 163,716 149,038 25,744 3_ 38,498 Decrease (increase) in current liabilities: Accrued payroll __ __ (181) (181) Accounts payable 35 -- 159364 15,399 f Insurance claims payable (330,620) 52 60 ) (b52 260) (1,035,483) Total decrease (increase) In current liabilities G30,585} 52 60 } (637,077) (1,020F265) Increase (decrease) In working capital $0 6_ 6,869) $ 2L435 $(611,33"3) $ (681,767r) r2 CITY OF HUNTINGTON BEACH STATEMENT XIV Expendable Trust Funds Combining Balance Sheet June 30, 1982 Employee Special DeferrEd Improvement Deposit Compensation Act Total ASSETS Cash and term deposits $127,350 �1,492s178 $ 6,541 $1,626ja6!) Notes receivable, net of unearned discount -- 978,879 -- 978�879 Total assets $127,350 $2,471,057 $ 61541 $2,604,948 LIABILITIES AND FUND BALANCE Liabilities: 1, Refundable deposits $127,350 $ -- $ -- $127,350 Bond principal and interest payable -- -- 6,541 6,541 Total liabilities 127,350 -- 6,541 133;891 Fund balances: Unreserved-undesignated -- 2L4111051 -- 2,471,057 Tc-al liabilities and fund balances 9127,350 $2,471,057 $ 6,541 $2,604,945 53 1 --A � - �_- - L----j 1---i L.. L._-1 -__--1 1-_-.._1 t.i i Y OF HUNT I NGTON BEACH STATEMENT XV Expendable Trust Funds Combining Statement of #revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 1982 Employee Special Deferred Improvement Deposit Co+mensat ion Act 'total Revenues: Contributions $ -- $ 311,455 s -- $ 311,455 Interest 373023 -- 373,123 Total revenues 684,578 684,57— Expenditures: Paid to participants in ernp?oyee deferred compensation plan 6�5 44�2. -- 65,442 Tot31 expenditures 65,'44Z 65` 442 Excess of revenues over expenditures -- 619,136 -- 6199136 Fund balances at June 30, 1981 1,851,921 - 1,851,921 Fund balances at June 30, 1982 i 54 i I This rage Left Blank intentionally LA t_-- J t_-.-1 L. .-I Statistical Section i L_i L I f! :—J v i I L-__1 J �tJ ___._1 :J i _.! .--j -- 1 ._.1 r__J SCHEDULE i STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY 17AXES Last Ten Fiscal Years (Unaudited) Use of From Charges Fiscal Other Licenses 5 Flnes 5 Money b Other for Current Other Year Taxes Permits Forfeitures Property Agencies Services Revenue 1973 $ 3,800,728 $1,997,105 $ 1260651 $ 651,746 $1,589,742 $ 7019760 $112,172 1974 4,3869433 1,834,580 152069 682,395 198309265 615,379 32,325 1975 5,723,995 2,236,292 1253,698 767,233 1,774,192 639,964 419427 1976 5,7229103 2,588,932 135,216 9079470 2;040,207 8251912 49,277 1977 6„85,656 2,817,209 214,808 1:050,938 2,56799g2 9429760 48,714 1978 7,953,048 2,6539;29 216,362 1,4152212 3,076,250 9381182 99,600 1979 12,8259591 21485,540 224,026 1,8149115 55029464 953,790 84,458 1980 14,557,330 2,597,954 3989877 1,820:700 3:874,763 1,1589294 go,149 1981 16,994,338 2,984,303 1,526,072 2,552,637 4,495,328 1,382,055 3669125 1982 19,040,227 2,736,785 1,515,914 3,223,113 2 6OJO1a153t439 529,704 r 55 SCHEDULE 11 STATEMENT OF GENERAL FUND EXPENDITURES i Last Ten Fiscal Years f (Unaudited) I I Fiscal Community Public Safety Total i Year Administrative Services Services Support General Fund I 1973 $1,330,792 $ 5,978,271 $ 8,489,612 $ 720,979 $16,519,654 1974 11494,073 6,601,075 9,541,847 906,900 18,543,895 1975 22802,270 6,977,233 10,858,325 813,411 21,451,239 1976 3:1g4,089 6,653,560 12,233,405 1,247,564 23,328,618 1977 2,664,478 7,747,535 14t0749326 2,4939348 26,979,687 1978 3,635,719 8,673,505 1479539652 ir814,454 29,077,330 I 1979 5,594,195 7:786,972 16,709,463 2,375,756 329466,386 1980 6,723,175 11,387,668 16089,782 29001,019 36,501,644 1981 5,001,191 11,784,064 18,916094 4,792,744 40,4940g3 1982 4,493,484 15,516,826 20,429,266 3,654,024 44-093,600 I Ii ' I 56 �---1 1---- ;--1 1 -- -1 ---1 ----1 • - - f ' A -- --1 •- -I -- - ; -� ---1 ------------------- L.--_; 1—J L.—! L--1 L _ 1 L__j ! _J Li —J ____# SCHEDULE III STATE14ENT OF ASSESSED VALUE, DEBT LIMIT AND RATIO OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND PER CAPITA Last Ten Fiscal Years (Unaudited) % Bonded Debt to Fiscal Estimated Total Legal Debt Total General Legal Assessed Bonded Debt Year _ Population Assessed Value Limit (15%) Bonded Debt Debt Margin Value Per Capita 1973 143,325 $ 410,283,199 $ 61,542th80 $5,930,000 $ 55,612,480 1.45 $41.37 1974 143,636 442,271,658 66,34o,749 5,765,000 60,575,749 1.30 40.14 1975 146,400 529,973,310 79,495,997 5,590,000 730059997 1.05 AM 1976 151,500 580,623,450 87,093,518 5,4101000 81,683,518 .93 35.71 1977 157,800 710,0792235 1069511,885 59220,000 101,291,885 .74 33.06 1978 161,200 854,321,745 1289148,262 5:020,000 1239128,262 .59 31.14 1979 167,500 831,7839620 124,7679543 4,8109000 119,9579543 .58 28.72 1330 172,200 983,927,670 147,589,151 4,5909000 142,999,151 .46 26.66 1981 172,813 1,074,3042701 161,145,705 4,360,000 156,785,705 .4i 25.23 -�1982 174,847 5,219,684 I 5,219,684,140 195,738,155 42150,000 19588, 5 - 2 4 — 3 — * The method used to determine Assessed Valuation has been changed. Beginning with FY-1982 Assessed Value will be based on 100% of market value. Previously, assessed valuation was 25; of market value. Accordingly, the legal debt limit for years subsequent to 1981 will equal 3.75% of the total assessed value. 57 SCHEDULE IV STATEMENT OF TAX DELINQUENCIES AND IMPOUNDS Last Ten Fiscal Years (Unaudited) SECURED TAXES UNSECURED TAXES Fiscal Tax Total Total Delinquency Total Total Delinquency Year Rate Levy Collections Amount Percent Levy Collections Mount Percent Impounds 1973 1.62 6,249,372 6,o94,m 51,276 .82 397,216 391,186 6,030 1.51 130,985 1974 1.62 6,703,620 6,490,009 66,654 .99 461,18? 4569296 4,685 1.06 137,957 1975 1.62 8,099,022 79844,596 74,987 .93 486,545 484,124 11,169 2.30 179,439 1976 1.62 8,852,049 9,587,784 82,622 .93 545,344 5161,539 28,798 4.36 186,64E 1977 1.62 9,982,983 9,344,450 116,794 1.17 5499994 538,370 69791 1.23 328,451 1978 1.55 12,563,144 12,336,834 1869310 1.49 742,a53 711,519 30,534 4.11 204,883 1979 .1972 5,635,879 5,525,120 110,759 1.97 561,420 537,307 24,113 4.30 1959202 1980 .192 8,842,899 8,602,751 240,148 2.72 8619976 839,468 229508 2.61 2,962 1981 .1854 10,224,68o 998729496 3527184 3.44 827068 789,078 38,090 4.60 28,585 1982 .04635 10,300,308 9t 893.563 406,745 3.98 808,024 737,425 46,596 j-71 46159b I 58 I _._. SCHEDULE V STATEMENT OF FUTURE GENERAL OBLIGATION BONDED DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT JUNE 30, 1982 (Unaudited) 4 { Fiscal Year Principal Interest Total 1983 $ 220,000 y 248,450 $ 468,450 1984 235,000 235,800 470,800 1985 245,000 221,700 4609700 1986 260,000 237,000 467,000 1987 280,000 151,400 4719400 1988 295,000 174,600 4699600 1989 3109000 156,900 4669900 1990 3302000 1389300 468000 1991 350,000 118,500 468,500 1992 370,000 979500 467,500 1993 395,000 75,300 470000 1994 415,000 51,600 466,600 1995 445,000 _ 26,700 471,700 Total $4L150y000 $1,943,750 $6,093,750 59 SCHEDULE VI STATEMENT OF FUTURE WATER REVENUE BOND REQUIREMENTS BY YEAR BASED ON OUTSTANDING DEBT JUNE 30, 1982 (Unaudited) Fiscal Year Prin-ipal_ Interest Total 1983 $ 150,000 $ 73:300 $ 223,800 1984 145,000 68,700 213,700 1985 160,000 63,350 2239350 1986 160,000 57,750 217,750 1987 170000 519975 221P975 1988 180,000 45,850 225,850 1989 180,000 39,550 219,550 1990 1901000 33075 A23075 1991 200,000 26,250 2269250 1992 31,000 3,850 34,850 Total $1,566.000 $464,150 $2,030,150 i I i s� t 6O SCHEDULE V11 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION (a) STATEMENT Or BONDED DEBT JUNE 30, 1982 (Unaudited) Date Years Rate Bonds 'Bonds Bond of of of Or;ginal Outstanding Matured Outstanding Description Sondz Maturity_ Interest Issue July 1, 1981 During Year Juna 30, 1982 Civic Center .fan. 197-. +"75-1982 7.00$ $ 2,010,000 $ 310,000 $310,000 $ '- Leasehold 1983 5.70 330,000 330,000 330000 Mortgaa^ Bonds, 1984-1996 5.50 7,040,000 6,965,000 -- 6,985,000 First issue 1597-1998 5.00 1,720,000 1,595,000 1,595 L00 Total 112100,000 9,220,000 310,000 81910,000 Central Library Sept. 1972 1975-1983 7.0004 112201,000 480,01110 150,000 3301000 II Leasehold1984 5.90 180,000 180,000 -- 1800000 Mortgage Bonds 1985 5.40 190,000 1902000 -_ 190,000 Second Issue 1986-1988 5.50 640,000 640,000 -- 6409000 i 1989-1991 5.60 770,000 770,OOC �- 7709000 1992 5.70 290,000 290,000 -- 290,000 1993-190' 7.75 965,000 965,000 9659000 1996-1597 5.00 745,000 745,000 - 145,000 Total 5,000,000 4,260,006 150,000 4,110000 ! 000 $460,000 16,100,000 $13,480 513,020,000 Total banded debt �. L (a) The above schedule has been included for Informational pur30sL5 only. The Huntington Beach Public l:acli:ties Corporation is an independent entity. Accnrdingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. 61 J SCHEDULE Vill HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDEU DEBT (a) JUNE 30, 1982 (Unaudited) Fiscal Civic Center Issue _ Library Issue Total Year Principal Interest Total Principal Interest Total Principal Interest Total 1983 S 3302000 $ 462,735 $ 812,735 $ 160,000 $ 225,967 $ 385,967 $ 490,000 $ 7089702 1,198002 t984 3609000 463,925 823,925 170 000 214,417 384,417 530000 678042 1,208*342 1985 3809000 444,125 824,125 180,000 203,157 383,157 560,000 647,282 1,2079282 1986 400,000 423,225 8232225 1901000 192,717 3829717 590,000 6159942 1,205,942 1987 4301000 401,225 831,225 200000D 182,487 382087 630000 5839312 t,213,312 1988 4501000 377,575 827,575 210,000 170,b12 380,812 6609000 5489387 1,2089387 1989 465,000 352,825 8179825 2309000 158,712 388,712 '959000 511,537 1,206,537 1990 530,0c0 327,250 857,250 240,000 145,667 385,667 770,000 472,917 1,242,917 1991 555,000 298,100 8533100 260,000 131,667 3919667 815,000 429,767 1,244,767 1992 600,000 267,575 867,575 2709000 1162827 386,827 8709000 384,402 1 254 402 1 40 993 u000 234,575 874,575 290,000 101,002 391,002 930,000 335,577 1,265,57? 1994 675,000 199075 874,375 305,000 83,968 388,968 980,000 283,343 1,263,343 1995 7259000 162s250 887,250 320tOOO 66,000 386,OD0 11045000 228,250 19273,Z50 1996 775,000 122,375 897,375 340000 47,D25 387,025 1,1159000 169,400 19284,400 1997 830,000 79,750 909,750 360,000 28,250 388,250 1,190,000 108,000 1*298,000 1998 765,000 38,250 803,250 385,000 9,625 3941,625 1,150,000 47,875 1,197,875 Total S8,910,000 $4,b75,135 $13z 585,135 $4,1i0,fl0fl $2,077,900 $6,187,900 $13,020,000 $6 5_ ,7 3,035 $19,773,035 Principal Due: January September Interest Due: July and January September and March (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporation is an l independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. ' I 62 1 L 1 SCHEDULE IX PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF BONDED DEBT (a) JUNE 30, 1982 (Unaudited) j Date Years Rate Bonds Bonds Bonds of of of Original Outstanding Matured Outstanding Descriotion Bonds Maturity Interest Issue July 1, 1981 During Year June 30, 1982 1968 Parking Sept. 1968 1970-1972 6.00t $ 150000 $ -- Revenue Bonds 1973-1979 4.75 470,000 -- 1980-1985 5.00 570,000 485,000 851,000 400,000 1986-1993 5.25 11110,000 1,110,000 - 1t110,000 Total $2,300,000 $1,595,000 __ Es 000 $1 lE o0a SCHEDULE X PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT (a) JUNE 30, 1982 Fiscal Year Principal Interest Total 1983 $ 901000 76025 166025 1984 953,Q00 71:400 166:400 1985 105.000 669400 171,400 1986 710,000 619025 171,025 1987 115,000 55,256 170,256 1988 7209000 492088 169,088 1989 1259000 429656 167,656 1990 135,000 351,831 1709831 1991 1409000 289613 1689613 1992 1509000 21,000 171,000 1993 160,000 12,863 172,863 1954 165,000 4,331 163,331 Total $1,510,000 $524,488 _ $2 0, 34,4$$ (a) The above schedules have been Included herein for informational purposes only. The Parking Authority Is an Independent entity. Accordingly, its obligations are not obligations to the City. 63 SCHEDULE XI CITY OF HUNTINGTON BEACH MISCELLANEOUS STATISTICS JUNE 30, 1982 ! (Unaudited) I Date of incorporation 19D9 Form of government Charter City - Council - City Administrator Area 28 square miles Population 1749847 fill-- of streets 362.4 miles Number of street lights 12,275 r Fire Protection: Number of stations 7 Number of firemen and officers 141 Police protection: Hum=ijer of stations 1 Number of policemen and officers 194 Municipal water department: Number of customers 459114 Average daily consumption 24.9 mI'lion gal. Miles of water mains 423 Sewers: Sanitary sewers 270 miles Storm sewers 31 miles Building permits Issued 2,533 per year Recreation and Culture: Number of parks 54 Number of people using parks 640,000 Acres of beach 43.3 Humber of people using beaches 3.7 million Number of libraries 4 Number of volumes 382,118 Total library circulation 1,004,063 Number- of people using libraries 89083 Employees lv250 64 t t it i I Huntington Beach Public Facilities Corporation Financial Statements June 30, 1982 With Accountants' Deport Thereon � --j -.A HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION ANNUAL F13ANCiAL REPORT jUNE 30, 1982 TABLE OF CONTENTS s a F10;CIAL SECTION Exhibit Report of Certified Public Accountants Financial Statements: i Combined Balance Sheet i 1 Combined Steterient of Earnings and Retained Earnings 11 2 Combined Statement of Changes in Financial Position 3 Notes to Combined Financial Statements 4 Mm i i • �___ — — --- I i This Page left Blank Intentionally II --- I now L---J L--J l._J (r_-j I 1e�1 LM ARTHUR YOUNG S COMPANY The Honorab 1 e Board of Directors SUITE 900 Huntington Beach Public Faculties Cor, ,)ration 3200 PARK CENTER DRIVE Huntington Beach, California P. o. BOX 2410 COSTA MESA. CALIFORNIA 92626 We have examined the combined balance sheet of the Huntington Beach PuW c Facilities Corporation at .tune 309 1982 and the related combined statements of earnings and retained earnings and changes In financial pasltion for the year then, ended. Our examination was made In accordance with generally accepted auditing standards and, accordingly, included such tests o` the accounting records and such other auditing procedures as we considered necessary in the circumstances. in our opinion, the statements mentioned above present fairly the financial position of the Huntington Beach Public Facilities Corporation at June 30, 1982 and the results of operations and changes in financial position for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. September 16, i5d2 jo This Page Left Blank intentionally i I � ■i■� i ii i�■i iii fii r.:�: L..� i �:�:J ---3 L _J EXHIBIT 1 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION � COMB I NEO AND CONii i N l tie OALANCE SHEET June 30, 1982 ' Civic Total Cent_ eer Project Library Protect Assets Restricted assetst Time certificates of deposit $ 2,0449909 1,334,�170 Y 716,039 i Temparary invastments In U.S. governmew6 securities, at cost (marl,ett $1,558,656) t,589,302 i,1901302 jgd,500 Accrued Interest receivable 13 ,61! 67,823 '9,T88 Tr-tal restricted assets $3,7719822 $ 29593,495 $19178,327 Long term leases receivable less unearned Income of $ 8:271,144 (Vote 3) -71,7_ 91 8,050,02 2 41 21 'iat,Gi assets $15.5 6_3` Liabilities and Retained Earninas Current liabilities payable from restricted assets: Aceriied interest $ 301,471 $ °23,381 Current Installment of bonds payable (Note 4) _ 320,404381 =o0w00078,oy0 _ Total current ltabll '.tles payable from restricted 490L000 assets 751*471 5539381 2.3SOC30 Deferred rental income 68,473 4$ 473 Bonds payable, net of current instalimen. (Note 4) 13,5_30�040 8,560�B�O Total liabilities 13,389,g44 9,201�$54 E Retainet. earnings _ 2,t, 1'4 1,4��0 �! 4 4 I Total linbillLles and retained earnings $1;y56�� $l0 64 r 4 s� See accompary k. notes to comb!ned financial statements. i i I EXHIBIT Il HUNTINGTON BELCH PUBLIC FACILITIES CORPORATION COMBINED AND COMBINING STATEMENT OF EARNINGS AND RETAINED EARNIKGS YEAR ENDED JUNE 30, 1982 Civic Total Center Project Libre m,1ro ect Oper;.-Ling revenue: Lease income: Lease payments received $1,253000 $ 854:900 3992000 Less amortlxatton of leases receivable (3492990) f239}500) (IID,49,0} Interest income on capital leases 9039910 61%400 2889510 Operating expenses 1 62 ) 268) 1 3 ) Net operating Income 902,287 615032 287053 Non-operating revenue: Interest earned 497,746 339,324 158,422 Total operating and non-operating income 1000,033 954,456 44%577 Non-operating expenses: Interest expense (725,946) (490,558) 2 388) Net earnings 674087 4632858 2109189 Retained earnings at July 1, 1g81 1 4 a o4 977,782 2, 19265 Retained earnings at June 30, 1982 $2,173 034 $b 4412680 $ 7312454 See accomptnyirg notes to ctAbined financial statements, 2 f---1 F—1 C--1 j.'. .! • -- •� •�-- t.. - . �? F- .. L__i L J L_J l____] LJ L—J L__1 LJ L.J L`3 L. J ?1 LJ LJ Z:-J ::.A -1 �A �l EXHIBIT III HUNTISGTOR SEAC11 PUBLIC FACILITIES CORPORATION COMBINED AND COMBINING STATEMENT OF CHANGES IN FINARCIAL POSITION YEAR ENDED nNE 309 1982 Civic Total Center Prc.lect Library Pro]ent Source of funds: Funds provided from operations: Net earnings $ 674087 $ 4631,898 $210,1p9 Amortization of leases receivable 349,g:W 239=5110 11C,490 $i 02_.z_._4i7 Use of funds: Reclassification and redemption of bonds payable $ 4909000 $ 330,000 $1609000 Decrease In deferred rental Income 40929 41029 -- Increase in working capital 530,048 369,369 160,679 j $1 02, 4,077 $ 703,398 $ 203 .679 Changes In components of working capita h Increase (decrease) In restricted assets: Time certificates of deposit $ 946U5 $ 7290960 $216,G95 Temporary investments In government securities (427:118) (3460427) (800691) Accrued Interest receivable 26.415 4 0} 33,845 545,352 176,101 169,24,9 Decrease ;increase) in current IlAbllltles: Accrued Interest payable 14,696 1392" Is430 Current installment of bongs payable 10 600) (25.099) 10 000) Increase In working capital $ ;048 $ 6 $1b0,611 See accompanying notes to combined financial statements. 3 HUNT I NGTON BEACH PUBLIC FAC I L I T 1 ES CORPORAT i QN NOTES TO COMBINED F€NARCIAL STATEMENTS JUNE 30, 1982 (1) Summary of Significant accounting Policies The following is a summary of significant accounting policies used by the Huntington Broach Public Facilities Corporation (Corporation). Basis of Accounting The accompanying combined financial statements of the Corporation have been prepared using the accrual basis of accounting. TemEarary Investments investments are stated at cost. Such investments consist of Federal Government backed securities and are adjusted for amortization of purchase premium or discount. aond Accounts Under the provisions of the bond indenture agreeinnts, the Corporation is re:;uired to maintain separate accountability for various types of fends received. A description of these funds, which are combined for financial statement presentation, Is as follows: Account Source Use Reserve Fund Bond proceeds and rental revenue fund Bond principal and interest Construction Fund Bond proceeds Cost of project Interest During Construction Fund Bond proceeds First twenty-six months' Interest on bonds Rental Revenue Fund City of Huntington Beach rent payments kequlred transfers to various funds and/or other specified purposes Debt Service Fund Transfers from revenue fund Bond principal and interest Administrative Expenses Fund Transfers from revenue fund Corporation operating expenses Bond Redemption Fund Transfers from revenue fund Call and redemption of bonds, changes, alterations or additions to the project, or reimbursement of any base rent or additional rent previously paid by the City of Huntington Death 4 i - t t t t t i i t t . t I t .-_J —J —1 -- _1 (1) Summary of Significant Accounting Policies, Continued Upon completing construction, separate rental revenue funds were established to account for all lease and other revenue from the City of Huntington Beach for the Civic Center and Library. Ths separate construction funds for the Civic Center end Library projects continue to account for improvements and modifications to the project structures as •pproved by the Directors of the Corporation. Money in the respective rental revenue funds Is disbursed as follows: first, to the debt service funds In amounts sufficient to pay one succeeding principal and two succeeding interest installments; secoatd, to the respective re-arve funds in amounts necessary to restore a balance equal to one year's lease revenue; th=rd, to the administrative expense funds in mounts equal to the budgeted administrative expenses of the Corporation; fourth# to the bond redemption funds. Money in the bond redemption fund is used to correct dericiencles in the debt service funds, reserve funds or administrative expo^:n funds. Money remaining after meeting the minimum requirements of the bond agrd--tments may to used to purchase or redeem outstanding bonds In order to make improvements or to reimburse the City of Huntington Beach for rent paid to the Corporation. (2) Organization The Huntington Beach Public Facilities Corporation was incorporated under the laws of the State of Californib as a nop--profit corporation on November 25, 1970. The Corporation ii+tas formed "'or the primary purpose of financing and constructin!+ a civic center complex and central library for the City of Huntington Beach. The constructed civic facilities have been leased t_ 'he City of Huntington Beach under long term lease agreements (Note 3). (3; Leases The Corporation has entered Into two lease and sublease agreements with the City of Huntington Beach, The terms of the leases are as follows: (a) Civic Center lease - This involves a lease and sublease agreement with the City of Huntington Beach for the Huntington Beach Civic Center. The site occupied by the Civic Center Is owned by the City and was leased to the Corporation for an advance- rental of $350,000. The term of the lease le from January 15, 1972 to one week after the terminstion of the sublease described in the next paragraph. The Corpordtion has subleased V)e Civic Center site and civic buildings constructed thereon to the City for ..: annual rental of $854,900. This subleases commenced July Is 1974 and extends for a terra of the earlier of: (a) thirty years or (b) until the bonded indebtedness incurred by the Corporation to construct the Civic Center has been paid. (b) Central Library lease - This involves a lease and sublease agreement with t4* City of' Huntington Beach for the Central Library. The site occupied by the Central Library Is owned by the City and tax leased to the Corporation for an advancd rental of $300,000. the term of the lease: is from September i, 1972 to one week after the termi.:atlon of the sublease described In the next paragraph. c AW (3) Leases, Continued The Corporation has subleased the Central Librar-r site and building constructed thereon to the Cit. for an annual rental of $399,000. This sublease commenced February 159 1975 and extends for a tern of the earlier of % (al thirty years or (b) until the bonded indebtedness incurred by the Corporation to construct the Central I.ibrary has been paid. Under both agreements, the City is regi1 red to pay all taxes, insurance, adininistrative and maintenance costs associated with th- leased facilities. At the conclusion of the lease agreements, title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such leases be treated as financing leases. Under the financing method, the excess of aggregate rentals over the cost of the leased property is considered compensation to the lessor for the use of funds Invested. At June 30, 1982, leases receivable from the City of Huntington Beach for tiia Civic Center and Central Library facilities total $i2,141,24c9 net of unearned income. The site advances are included in the long term leases receivable and are amortized over the term or tue leases. (4) Long-term Debt A summary of the Corporation's bonded indebtedness as of Jana 309 1982 is as follows: _ Maturities Date of interest Criginal Outstandin Annual Period Bond issue Issue rates issue June 30, 1912 requirements covered Civic Center: Leasehold Mortgage Bonds, Varying amounts from First Issue (a) Ja.tuary, 1972 5.00 - 7.00% $1191009000 $8,9101060 $200,000 to $890,000 1975-1998 Central Library: Leasehoid Mortgage Bonds, �arying amounts flan Second Issue W September, 1972 5.00 - 7.00% 51000,000 4*110400 $105100n to $385,000 1975-1597 $16=100,000 $3,02J,000 (a) The $11,100,000 principal amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972 and warn Issued as coupon bonds in $5,000 denominations. These se:-ial bends mature annually on January 15. Interest is ayabis semi-annually on January 15 and July 15. Bonds maturing on or after January 15, 1983 (a principal amount of $9.090,000) are subject to tall and redempt;on at the Option of the Corporation, In total or in part, on January 15, ta$2 c- on any interest payment date thereafter. Call price of the bonds shall be an amount e•;uai to the principal amount plus premium equal to 1/4 of 1 percent of the principal amount reo3amed, plus 1/4 of 1 percent for each yjar or !7;.Ztion of a year from the redw*tlon date to the maturity date of the bonds. in no avant shall the premium exceed 4-1/2 percent. 6 I 1 f - 1 f. "I i_ .l t._..1 t _1 7 - 1 1_._? I__± I__.A 1—.! L-J t__-J l_J '.._! L__t ` _.! LJ L J :_ __i L . _i .—A : _J ____! t4) Long--Term Debt, Continued (b) The $59000,OOO principal amount of Leasehold Mortgage Bonds, Second issue (Bonds) are dated September 1, 1972 and were : %Sued as cotipon Londs in $5,000 denominations. These serial bonds mature annually on September 1. Intarest Is payable semi-annually on March 1 and September 1. Bonds maturing on or prior to Septe.-aber 1, 1982 are neraily not subject to call and redemption prior to their fixod maturity date. Bonds maturing on or after s!ptember 1, 1983 ra principal amount of $3,950,000) are subject to call and redemption at the option of the Corporation, in total or in part, on September t, 1982 or on any interest pavmeat date thereafter. Call prt;e of the Bonds shall be an amount equal to the principal amount redeemed plus a premium equal to 1/4 of i percent of the principai amount redeemed, piur 1/4 of 1 percent for each year or fraction of a year from thQ redemption da%e to the maturity data cf the Bonds. In no event shall the premium exceed 4 percent. 'f .e following I.; o schedule of required principal payments during the next five fiscal years and thereaftert Civic Year Ended Center Library June 30 Pro ect Project Total t983 MOOD $ 160,000 $ 4909000 1984 3600000 T709000 S30,000 198S 3800000 1809000 560,000 1986 400,000 1909000 5902000 1587 430,OOO 2009000 6309000 1988 010 000 21L 0,000 10,210,000 $8291� $421101000 $13,020,000 i I 7 This Page Left Blank Intentionally I . f ---I [ -._I i Y [:_.._.t t_.__i t.---! L J `__,.! [__J lwJ L__1 L i L-! Parking Authority Of The City Of Huntington Beach Financial Statements June 30, 1982 and 1981 Witb Accountants' Repa rt Tbereom � I [_J [__1 L_-1 E-J L_J L`J LJ :____1 L--J; t.___.( PARKING AUTHORITY OF THE CITY OF HUNTIHGTON BEACH ANNUAL FINANCIAL REPORT JUKE 30, 1982 TABLE OF CONTENTS FINANCIAL SECTION File Report of Certified Public Acountants Exhibit i Financial Statements: Balance Sheets 1 Statements ut Earnings and Retained Earnings i! 2 Statements of Changes In Financial Position ill 3 Notes to Financial Statements I This Fzge Lett Blank intentionally i i ( 1.__ _ l - _-• t . i ( . i _ . : !___.1 �.- E.____-! L_J !___J : .i L__1 __-J L ...1 1 —] .—J _._1 -�—j :_I ARTHUR YOUNG a COMPANY 00 The Honorable Members of the Parkin Authi..-i: s SUITE Wk: 9 Y 20o PARK CENTER DRIYi City of Huntington Beach P. G. BOX 2410 Huntington Beach, Cal ifernia COSTA MESA. CALIFORNIA 92M Ve have examined the balance sheet of the Parking Authoeity of the City of Huntington Beach at June 301 1982 and the related statements of earnings and retained earnings and changes in financial ,Ositlon for the year then ended. Our examination was made 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. The financial statements of the Parking Authority of the City of Huntington Beach for the year ended Jrne 30, 1931 were examined by other auditors whose report dated September 253, 1981 expressed an unqualified opinion on those statemnts. In our opinion, the 1982 statements mentioned above present fairly the financial position of the Parting Authority of the City of � Huntington Beach at .;jne 30, 1902 and thL resul Z of operatlonba and changes in financial position for tine years then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the vreceuding year. i f ' l September 15, 1982 it E I This Page Left Blank Intentionally i t_ _ - [._ L_ ..J L._ J t___! L__J L-A - EXH121T I PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH BALANCE SHEETS JUNE 30, 1982 and 1981 Assets: 19E2 1981 Current assets: Cash and term deposits $ 1815366 $ 163,863 Receivables: Accrued interest receivable 419422 589307 Due from other entitles 1,808 Tatar receivables 43 230 58,107 Total current assets 224:59 222,170 Restricted assets: Investments, at cost which approximates market (Note 3) 895037 764,255 Cash with fiscal agent 12,069 7,594 Total restricted assess 207,099 8 ,° Fixed assets, at cost: Land 371,065 371,065 Improvements 1316941089 11,694,089 Less allowance for depreciation (893,15)) (821,259) Net fixed assets 1,172,1101 1 243,1� Total assets $2 O $2-2--21T Liabilities and Retained Earnings: Current liabilities payable from restricted assets): Accrued Interest payable 2F,092 279508 Current Installment of bonds payable (W.,te 3) gv9000 85900D Matured interest payable 12,062 7.59-4 Total current liabi!ItTes 128,154 1203102 Bonds payable, net of current installment (Nate 3) i,420,000 1,510,000 0,000 Total liabilities 13,548058 19630,102 Retained earnings 755,542 607,112 Total liabilities and retained earnings . See accompanying notes to finaacial statements. 1 EXHIBIT II PARKING AUTHORITY OF THE CITY OF HUNTING ON BEACH STATEMENTS OF EARNINGS AND RETAINED EARNIMS YEARS ENDED JUNE 309 1982 and 1981 1282 _ 1281 — Operatiag revenue: Rentals (Note 2) $1700SO $170,050 j O?eraring expenses: Depreciation 719144 71,194 Parking meters 3,225 -- Total operating expenses —747.71! 71,124 Net operating income 95_631 98,g5 Nan-operating revenue: Interest earned 131,781 114,847 Total operating and non-operating Income 227,412 2139703 Non-operating expenses: Interest expense (78,982) 83 2 4) Net earnings 148,430 130*469 Retained +:arnings, beginning of year 607,112 R6,643 Retained earnings, end of year $7 542 T6O 112 See accompanying rotes to financial statements. 2 ; ---, ---� --, ---� ---.� ---3 ---3 _---7 --� "-"f �� - EXHIBIT III PARKING AUTHORITY OF THE CITY OF HUNTINGTON LEACH STATEMENTS OF CHANGES IN FINANCIAL POSITION YEARS ENDED JUNE 30, 1981 and 1981 1982 1981 Sources of working capital: Net earnings 0148,430 $1309469 Item which does not use working capital: Depreciation of iand Impro ements 713,194 713,134 Decrease in working capital 5,626 $225,230 $201,66 Uses of working capital: Current Installment of bonds payable 901000 85�00Q Increase in restricted assets 135,250 80,138 Increase In working capitol -_ 36,525 $225,250 $201166 Changes in components of working capital: Increase (decrease) In current assets: Cash and term deposits 17„03 14,769 Receivables (14,951) 26,777 Due from other entities 226) 2,426 41,546 Decrease (increase) in current liabilities: Accrued Interest payable 1,416 Matured interest payable 01468) (n,43a) Current installment of bonds pa-:sble (g g00) • (8,052 (5,021) Increase (decrease) in working -apital $ (5j626) $ 36 52 See accompanying notes to financial statements. 3 PARKING AUTHORITY OF THE CITY _ OF HUNTINGTON BEACH NOTES TO FINAi1CIAL STATEMENTS JUNE 30, 1902 (1) Summary-of_ Significant Accounting Policies I Basis of Accounting The accompanying financial statements of the Parking Authority of the City of Huntington Beach (Par ing Authority) have been prepared using the accrual basis of accounting. Fixed Assets and Depreciation k Fixed assets are recorded at cost. Land improvements are depreciated using the straight-line method over the term of the lease with the "ity of Huntington Beach (City). I nves t:ren is investments are stated at cost and consist of Federal government backed securities and bank time certiFicates of deposit (see Note 3)• Lease The i-a king Authority leasing operations consisc .totally of the leasing of Its parking facilities to the Cit1j of Huntington Beach. fie Parking Authority lease with the City of Huntington Beach is classified as an operating lease. (2) Operations The Parking Atithorlty is an independent public agency established in 1967 under provisions of the Parking Law of 1949. The primary purpose of the Parking Authority is to provide off-street porkinq facilities for the City of Huntington Beach. The Parking Authority leases its parking facilities to the City under a le3s3 agreement which requires minimum annttal rental payments of W0,050 through July 19 1992. The Parking Authority obtained the funds to acquire and construct these facilities through the Issuance of $2060,000 of revenue bonds which ar, secured by t'oie rental payments received from the City. The rental Is payable annually on July 1. Rental income is to be used for bond principal and interest requlrements. Excers funds, if any, including interest earned thereon, which are not required to meet scheduled principal and interest payments and which are not required by the bond Indenture agreement to be established as a reserve may be: (1) used to finance additions and improvements to the parking facilit;, or (2) applied as a credit against annual rental payments from the City. 4 �- --- t tILt _� ; 1--i !— 1 ---Ji_.. .) 1 ,.__� :� _ _� ---] ___ :� :__1 --i ---A PARKING AUTHORITY OF TH1 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, CONTINUED (2) Operations (Contlnued) Under the terms of the lease agreement dated September 30, 196G between the Parking Authority and the City,, the lease Is to terminate after all of the 1563 revenue bonds are retired or provision for retirement has bean made. 'All costs e7t maintenance and operation have been assumed by the City. The City must also pay, in the form of additional rent, all taxes, assessments, insurance, fees and other expenses of the Parking Authority. At the termination of the lease, the parking Authority will retain title to the parking facility. (3) Bonded Debt A summary of the Parking Authority bonded debt is as follovis: Bonds Bonds Matured Matured Amount Bonds During Bonds During i3onds Date Years of Rates of Original Outstanding Fiscal Outstanding Fiscal Outstanding Description of Issue Maturity Interest Issue 1980 1981 6/30/81 1982 6/30/82 1968 Parking September, 1970-72 6.00% $ 1509000 $ -- $ -- $ -- -- Revenue Bonds 1968 1973-79 4.75 470000 -- -- -- -- -- 1980-85 5.00 570000 570,000 85,000 4859000 853,000 400,000 198E-53 5.25 1,110,000 1,110,000 -- 1,110,000 - 1,110,000 $21300,000 $1,680,oc0 $85,000 $1 59, 5,000 $a5,000 $1 1,5 0,000 The following is a schedule o? required p-incipal payments during tha next five fiscal years and thereafter: Year Ended June 30 Amount 1983 901000 1194 959000 1985 1059000 1536 110,000 1987 1159008 Recra i nder 995,000 $1 t510,600 5 PARK;NG AUTHORITY OF THE CITY OF HUNTIOGTON BEACH! NOTES TO FINANCIAL STATEMENTS, CONTINUED (3) Bonded Debt (Continued) interest is payable semi-annually on March 1 and September 1. Provisions of the bend agreement provide for the establishment of three special funds as follows: (a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking facility are placed In the bond service fund. honey in this fund is used to pay bond principal and Interest. Ainounts received In excess of the amount required to meet principal and interest requirements may be transferred to the reserve fund or working capital fund. Under certain circumstances, such excess funds may be used to finance additions aad improvements or reduce the annual rental due from the City. (b) Reserve Funds - An aniount equal to one-half the maximum annual debt service must be set aside to be used to pay principal and Interest currently payable In the event there is insufficient money in the bond servlca fund and ;.--ay be applied to the final payments of principal and Interest. (c) Working Capital Fund - After provision has been made for payment of bond principal and Interest and an appropriate reserve fund balance has been establt:hed, excess money, if any, remaining In the bond service fiend -ray be transferred to the working capital fund to be used V7 pay the administrative expenses of the Parking Authority and maintain the working capital fund's cash at a balance of at least $1,500. At June 30, 10,81, the Parking Authority maintained the following investments pursuant to the terms of the bond agreement (see note 1): 1982 1981 Bond Service Fund $78;,814 $666,OZ1 Reserve Fund , 107,223 2BA244 y895 03 $764�255 Bonds maturing on and after September 11 1980 may be called before maturity and redeemed at the option of the Parking Authority on any Interest payment date prior to maturity. If less than all the outstanding bonds are redeemed at any one time, these bonds will be redeemed 1c inverse order of maturity and bond number. The uonds are redeemable at par value plus accrued interest and a premium equal to 1A of 1 percent for each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3-1/2 percent. 6 CM OF HtlMNGTON BEAM GENERAL FUND STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUHSRANCES YEAR ENDED JUNE 30, 1978 Appropriations Expenditures Personal Maintenance Original Revised Services and Capital Budget Change Budget Cost 0perGtlon Outlay Administrative City Council S 49,129 18,c.45 67,674 28,452 30,951 191 j Non-Departmental 3,015,853 (327,889) 2,687,964 - 2.497,049 Administration 1 ,016,308 33,754 1 ,100,062 768,515 235,199 15,864 Civic Promotion 77.503 20, 84 97.987 4,410 t 55,083_ Total Administrative 4, 158.793 20 _)06) 3,953.5 687 801 ,377 2.818.237 ;6,055 } Community Services Planning 767,663 (27.170) 740,493 644,675 36,1=5 3,182 Library 1 ,24b,524 100,360 1 ,346,884 796,510 423,273 20,659 Recreation and Parks 1 ,993,697 38,771 2,032,468 1 ,417,161 414,212 i ,237 Public Storks 4,883,993 580,687 5,464,680 3.323.452 1 ,429,893 10,106 Total Community Services 8,891 ,877 692_,648 9,584,525 5,181 .758 2,303,523 188,184 Public Safety Fire 4,940,609 230,637 5,171 ,306 4,397,856 t13.305 173,570 Poiice 8,746,664 64,011 8,810,675 7,565,532 722,697 10,804 Harbors and Beaches 1 ,073,537 71 ,519 1 ,145,056 844,318 156,059 2,232 } Building 796,596 _3, 8, 20 _ 830,416 742,328 20,897 4L034 i Total F :blic Safety 1 hr)6 400,04_ 15,957,453 1 &50,034 1 ,2)2,958 _)90,660 i Support 1 .354,707 27 670 1 .382 377 112 030 754,686 Treasurer + + + Attwney 319,627 (6,904) 312,723 260,869 35,944 Clerk 146,978 27,636 174,614 90,j10 63,705 Personnel 195,010 (3,873) 191 ,137 126,986 41 ,592 718 Finance 352,173 (8,517) 343.656 325,037 177 i J r q27 895 Total Support 2,363.495 ,5,0i2 2, �Q4,507 917,632 895._ - Total General Fund Direct Costs S30,976,571 _ 92:.601 31190011 2 21 ,450.841 7,2301695 395,794