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HomeMy WebLinkAboutComprehensive Annual Financial Report - Fiscal Year Ending 6 t i I 1 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF HUNTINGTON BEACH FISCAL YEAR RIIDED JONE 30, 1907 1 ..1 1 PREPARED BY ADMIXISTRATIVE SERVICES DEPARTMENT CITY OF BUNTIJOGTON BEACH J _ � T -j CITY OF HUNTINGTON BKACH f COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal year ended June 30, 1987 -, Table of Contents i INTRODUCTORY SECTION Page iDumber Table of Contents i - iii Letter of Transmittal iv - xiv Elected and Administrative Officials xv ' Organizational Chart xvi Financial Reporting Awards xvii - xviii I FINANCIAL SECTION Schedule —' Accountants' Report 1 _1 Cenral Purpose Financial Statements, Combined Balance Sheet - All Fund Types and Account Croups A-1 2 - 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental J Fund Types A-2 4 - 5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types A-3 6 - B Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 9 Combined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 10 Notes to Financial Statements 11 - 57 Financial Statements of Individual Funds and Arcourt Groups: General Fund: Comparative Balance Sheet B-1 56 _ Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual L-2 59 -i- ..J r Page Schedule Humber Special Revenue Funds: Combining Balance Sheet C-1 60 - 61 Combining Statement of Revenues, Expenditures } and Changes in Fund Balances C-2 62 - 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-3 64 - 68 Debt Service Fundas Combining Balance Sheet D-1 69 - 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 71 - 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual D-3 73 - 75 Capital Projects Funds: Combining; Balance Sheet E-1 76 - 71 Combining Statement of Revenues, Expenditures and Changes in Fand Balances E-2 78 - 79 Enterprise Funds: lit Combining Balance Sheet F-1 80 - 81 Combining Statement of revenues, Expenses and - POO Changes in Retained Earnings F-2 82 - 83 1 Combining Statement of Changes in Financial Position 7-3 84 85 ' i internal Service Funds: I Combining Balance Sheet G-1 86 1. Combining Statement of revenues, Expenses and Changes in Retained Earnings G-2 87 ^- Combining Statement of Changes in Financial Position G-3 88 I Agency Fund: Statement of Changes in Assets and Liabilities H-1 89 General Fixed Assets Account Group: Schedule of General Fixed Assets I-1 90 Schedule of General Fixed Assets by Function. and Activity I-2 91 Schedule of Changes in Fixed Assets by - Function and Activity I-3 92 General bong-Term Debt Account Group: Schedule of Changes in General Long-Term Debt J-1 93 1 STATISTICAL SECTION Page Exhibit Number -J Governmental Fund Types - Revenues by Source - Last Ten fiscal Years A 94 - 95 Governmental Fund Types - Expenditures by Function - Last Ten Fiscal Years B 96 - 99 Property Tax Levies and Collections - Last Ten Fiscal Years C 100 - 101 Assessed and Actual Value of All Taxable Property D 102 - 103 ^' Property Tax Rates - All Overlapping Governments - Last Ten Fiscal Years E 104 General Bonded Debt Ratios - Last Ten Fiscal Years F 105 - 105 Computation of Legal Debt Margin G 107 Computation of Direct and Overlapping Bonded Debt H 108 Water Revenue bond Coverage - Last Ten Fiscal Years I 109 - 110 Demographic Statistics .I 111 Construction Activity and Bank and Savings and -.� Loan Deposits - Last Ten Fiscal Years K 112 i Inourance in Force L 113 - 114 Principal Private Employers M 115 Miscellaneous Statistics N 116 i J � J � I _i 7 J I � I -• -iii- 1 1 � CITY OF HUNTINGTON BEACH -LJJW 2000 MAIN STREET CALIFORNIA 92648 October 29, 1987 -� The Honorable Mayor and City Councilmembers City of Huntington Beach, California _., Mayor and Council memberes We are pleased to submit to you the Comprehensive Anneal Financial Report for the City of Huntington Beach for the fiscal year ending June 30, 1987. We believe that the f data, as presented, is accurate in all material rimpecta and presents the financial condition of our City to you and other readers of this report in a clear and concise roamer. The financial statements are prepared in accordance with the standards of the -j Government Accounting Standards Board and its predecessor, the National Council on r Governmental Aocwnntiog and includes the report of our ant accountants, Diehl, Evww and Company. The report consists of three parts: 1. Introductory Section- letter of transmittal, City organizational chart and identification of principal City officials. 2. Financial Section- accountants' report, combined financial statements, combining financial statements and footnote disclosures. -' 3. Statistical Section- pertinent financial and non-financial data that gives readers a broader perspective on our City. J A tSG SYSI'b!! AND BUa 97W CCNrWL The City's financial statements are prepared on the modified accrual basis for all governmental find types except for the financial statements of the proprietary fund types which are prepared on the accrual basis. The City's system of internal control has been carefully designed to protect City aseeta while ensuring that the cost of a ..: particular control does not exceed its expected benefits. The City Council adopts the annual budget and may wwA or revise the budget at awl time. Budgetary control in maintained at the departmental level. A department head, with the Finance Director's approval cars tranmfer funds within like object categories of the saw department. The City Administrator can transfer finds from one object i -iv- A i category to another without increasing the total budget of a department. The City Administrator mat approve any changes to capital outlay requests. Any increases to a w• total departmental budget oust be approved by the City Council. The City utilizes an encumbrance system as a management control technique. EncUMbrances represent orders for goods or services unfilled or services not yet performed. At year end these are reported as reservations of fund balance in governmental fund types. These cwtstanding encumbrances are then reappropriated in the new fiscal year. The Accounting Division of the Administrative Services Deparbmmt is rexponsible for maintaining the City's financial information and for preparing this report. , i IMM, W1'M AND 1'1'S SMVICFS Huntington Beach is a full-service City including public safety, parks and recreation, beach services ,library services, planning and zoning, public works and related administration. The City also provides water services to residents and businesses. This report includes the financial activity of certain separate legal entities. These entities are: Huntington Beach Public Facilities Corporation- (Public Facilities Corporation) This entity was formed in 1970 to issue buds to finance the construction of the Civic Center and Library vaWlexes. Its original governing body was appointed by the City _ Council and its sole activity relates to leasing the Civic Center and Library complexes to the City. During the year the lease for the Civic Center site was discharged due to the formation of the Huntington Beach Civic Improvement Corporation • (see below). Huntington Beach Civic IMMyement Corprration- (Civic Improvement Corporation) This entity was formed in July, 1986 to provide for the issuance of $20,000,000 of certificates of participation of which a portion of these proceeds were used to defease the remaining Huntington Beach Public ►'acilities Corporation Leamahold Mortgage Revenue Bonds, First Tssuz. Parkin Authority of the City of Huntington Beach- (Parking Authority)- This entity was formed in 1967 to issue bonds to finance the construction of off-street parking facilities and then lease these to the City. The Parking Authority's governing body is the City Council. RedevelgEment A9ency of the City of Huntington Beach- (Aedevelognent Agency)-This _ entity was formed in 1967 to facilitate the renovation of certain areas within the City. The• members of the City Council also function as the governing body of the - Redevelopment Agmay. There are many other governmental agencies which provide services within the City. Thee agencies have independently elected governing boards and they are not a component unit of the City of Huntington Bouch. Therefore, their financial information is not included in this report. Cvsponent unit financial reports have been prepared for. the Public Facilities Corporation and the Redevelogwnt Agency. These reports show the finamr_ial activiti" of these entities on a "star d-alone" basis. Copies of these reports are available �- from this office. -v- General governmental functions include the operertions of the General, special Revenue, Debt Service and Capital Projects ''Lords. Below is an analysis of general governental re_venmm, which increased by $7,725,749 or 10.1% over the prior year: Amount Amount mk Charge 85/86 86/87 from 85/86 Property Taxes $19,427,642 $23,087,093 18.8 Other Taxes 27,622,057 28,884,962 4.4 Licenses and Permits 4,427,014 4,918,549 11.1 Fines, Forfeitures & Penalties 1,973,670 2,095,714 6.2 Fran Use of Mcxmey and Prop 5,718,196 7,634,071 33,5 From other Agencies 14,143,061 14,422,660 1.9 Charges for Current Service 2,525,401 2,799,219 10.8 -� other 735,484 4560006 (38.0) Total ,s76,572,525 04,298,274 10.1 PMM tv Taxes- The increase in property tax revenue is controlled by the guidelines of Article 13 A of the California constitution and by the California S-Wth and Safety Ccxie. Law interest rates helped trigger a real-estate boom which increased now residential and oarmerm:ial development and increased the value of existing property in the City. This, along with Redevelopment, Agency tax increment which totalled approximately $1.4 million aceoasrted for a large portion of the increase. Other Taxes- Normal increases. Licenses and Permits- Increases due to higher oontruction activity as a result of - lower interest rates. Fines,- Forfeitures and Penalties- Normal increases. I ; ~ From U&g of 02g7 ► and Property- Increases due to increased interest income resulting from certificates of participation and tax and revenue anticipation notes issued in July, 1986. Prom other Agencies- The amaller thamu expected increase is a result of reduced grant � activity. Charges for Current Service- Incre.ammes due to increased use of the City's recreation facilities. Other- Decrease due to reduced receipts for miaeellaneaus property damage. -vi- C Belcw is an analysis of general governmental expenditures which increased by $3,791,591 or 4.8% for the year and a comparison with the prior year followed by an explanation of significant fluctuations: + Percent Amount Amuunt Change w 85/86 86/87 from 85/86 City Council $90,029 $82,121 (8.8) PM City Administrator 629,890 709,952 12.7 1 City Treasurer 286,648 281,848 (1.7) City Attorney 644,685 563,804 (12.5) City Clerk 163,608 152,622 (6.8) Administrative services 2,600,737 2,680,065 3.1 Community Development 3,825,545 4,715,013 23.2 Fire 10,251,710 11,186,607 9.1 Police 18,744,618 20,519,431 9.5 Community services 5,668,499 6,089,924 7.4 Public �brke 15,045,519 14,567,248 (3.2)Non-Departmental 6,795,596 7,708,794 13.4 Capital Outlay 11,791,251 10,?30,436 (9.0) Debt service 1,846,950 2,189,011 18.6 Total $78,385,285 &176,876 4.8 The total increases closely approximate inflation and salary increases. The changes in the various departmental expenditures are largely due to a Lost allocation plan which allocated redcvelopaent related costs of various departmmts. These allocations caused the decreases in the City Council, City Treasurer, City Clerk, City Attorney and Public Works departments. The increases in the City Administrator's department is due to this office spending leas Redevelopment-related time than the prior year. The increase in the Fire department is due to increased overtime costs as a result of implementation of the Fair Labor Standards Act. The increase in the Police department is due to the addition of seven more positions in the table of organization. The increase in Caammity Services is due to the add;.tion of twelve permanent positions. Non-depwtmental expenditures .increased due to interest expenses associated with the issuance of tax and revenue anticipation notes. Capital outlay expenditures decreased due to the change in the Wray that capital outlay expenditures are reported in relation to the E;quipuent Replacement FW4 described below. pI*METARY FUNDS The City operates three enterprise and two internal service funds. Enterprise funds include the Water Utility Fund, the Meadowlark Golf Course Fund and the Ewrald Cove Homing Fund and are supported through user charges to the public. The internal service funds include the Self-Insurance Fund and the ET ipment Replacement Furl and are supported by charges to user departments within the City. -vii- 1 Shown below is a table couparing the performance of the City's enterprise funds to the prior year. Meadowlark Waiter Utility Golf Course 1985i86 1986/87 1985/86 1986/87 Operating 68,172,637 $9,161,618 $218,437 $229,984 Revenues Operating (1,761,013) (531,132) 185,850 202,447 Incom (tam) Net Income (Loss) (1,336,313) (202,517) 75,826 116,377 1 1 Iro=w Available (169,063) 1,060,185 263,502 269,192 for Debt service Debt Service, Bords N/A 279,298 150,000 150,000 and Notes D!!bt service N/A 3.8 1.7 1.8 Coverage -n I fterald Cove Hmning 1985/86 1986/87 Operating $575,826 $618,012 Operating 265,509 251,242 incrnpe (Doss) Net InMM (Loss) (26,484) (77,775) In ecroe Available —' for Debt Service 502,686 452,353 Debt service, Certificates 449,795 449,795 _. of Participation Debt service 1.1 1.0 Coverage -viii- t ' A The Water Utility Fund net lase decreased as a result of an increase in water rates in April and October, 1986. The increase approved for fiscal year 1987/88 should eliminate any future losses. The increase in Emerald Cave rents in July, 1987 should r also elimia%ale any future losses in the Eherald Cove Fund. shown below is a table comparing the performance of the City's internal service funds r to the prior year: Equipment ► � self-Insurance Replacement ' 1965/86 1906/87 1985/86 1966/87 Operating Revenues $5,543,657 $6,859,456 $1,658,402 $1,r66,286 Operating Inome (235,903) 102,722 1,498,235 (349,449) r Net Irew a 158,722 517,077 1,826,693 (97,70) ` The changes in the income ammults for the Equipment Replacement Fund are a result of changes in the way the City records capital outlay expbnditures described below.FM Baurrm I � Total fund e*dties increased $31,748,321, or 42.7% as shmon in the table below: r Total Total Percent ~� Equity Equity Increase 85/86 86/87 (DMrcase) Governmental funds General $12,430,480 S 13,744,528 50.8 Special Revenue 14,741,476 14,178,488 (3.8) Debt service 6,864,970 6,925,942 3.6 Capital Projects 2,622,043 18,114,460 590.7 $36,658,969 S 57,963,418 58.1 Total Proprietary Funds Enterprise $34,829,635 $ 35,090,571 1.0 laternal Service 2,848,422 12,561,136 340.0 Total Proprietary Funds $37,678,037 47,651,707 26.5 Grand total J 41337,026 --.105,615,125 42.11 ! -ix- f `r The equity increases in the governmental funds show the financial health of the _. City's general operations. The large increase in the fund equity of the capital ' projects funds is due to the proceeds from the Huntington Beach Civic IWrove:ment Corporation Certificates of Participation that will be used to construut parking structures and land now held by the Redevelopment Agency that will be resold to developers. The large increase in fund equity for self i.n$aranc:e funds is due to the charge in procedure used to record transactions in the Dquipmant Replacent Fund described below. AGENCY rams _ Total aasets and liabilities of the City's agency funds increased by $1,686,584, or ' 23.2% to $8,968,426. This is due to increased mployee participation in the City's section 457 deferred conpensation plan which is the only agency fund maintained. 17[iB�' below is a sumaary of the City's outstanding longterm debt at June 30, 1987: Am�.rnt j DesCriPtion Outstandim General Obligation Buds $ 2,885,000 1.970 Park Bonds Revenue Bonds 1963 Water Bonds 069,000 Parking Authority Bands 945,000 Certificates of Participation Redevelopment Agency- 4,600,000 Hnerald Cove Housing Huntington Beach Civic Improvement 20,000,000 Corporation i Leasehold Mortgage Bonds Public Facilities Corporation-- 2nd Issue 3,210,000 Notes Payable _ Meadowlark Golf Course 1,755,949 San Joaquin Reservoir 271,785 State Coastal Conservancy 425,000 Other Compensated Absences 3,575,550 RedeveloSrent Agency Debt 16,122,777 Self-Insurance Claimer 7,167,000 Amounts Due Under Owner Participation 1t408,047 Agreement Total 563,235,108 -x- Furt1wr information on the City's long-term indebtedness is included in notes 10 arra 11 to the general purpose .financial statements. rA ChM MNQ%GEMM I � r The City Treasurer is re3ponsible for investing available cash in allowable instruments. These include insured or collateralized certificates of deposit, A certain government secw ities, five year or less co m. rcial paper rated A or better I � and the State Treasurer s Local Agency Investment FUnd. The cash management system of the City is designed to monitor and forecast reve,uam and expenditures to ensure the investment of monies to the fullest extent possible. The criteria for selecting r investments are, in order of priority, (1) safety, (b) liquidity, (c) yield. auther li information on the City's investments are detailed in note 3 to the general purpose financial statements. p The average total of non-restricted cash and investments was $60,140,859 which yielded interest of $4,916,495 for a return of 8.2%. At June 30, 1987, 91.5% of the City's total investment portfolio matured in less than one year. The California Government Code requires the City Treasurer to prepare an annual statement of investment policy and monthly report containing specific information regarding the City's investment policy. The City Treasurer has complied with this r law. Further information on the City's investment is detailed in note 3 of the financial statements. FIM ASMM , The City's general fixed assets are used for general governmental operations and do �- not include the fixed assets of the enterprise and internal service funds. At June 30, 1987 the City's general fixed assets totalled $64,793,754. 'this amount represents w cost of the assets and is considerably less than their present value. Depreciation of general fixed assets is not recognized. The City operates an Equipment Replacement Fund which owns all general governmental equipment and leases it to user departments. The Equipment Replacement Fund phases all replacement equipment for general governmental operations. At July 1, 1986 all equipment which had been recorded in the General Fixed Assets Account Group was transferred to the Equipment Replacement Fund. Governmental fund equirsment purchases which do not replace existing equipment are purchased by the respective fund and transferred to the the Equipment Replacement Fund.. The transfers are recorded in the Equipment Replacement Rand as contributed capital. PP413PLI I'S EM THE rumtE H'antington Beach faces the future as one of the leading cities in California. However, many difficult, challenging uncertainties remain for the City Council and h. staff to over+come0 -xi- 6 Redevelopment will play a critical role in our future and construction is scheduled to begin soon in the Main/Pier project area which is the largest Redevelopment Project undertaken so far. There has already been positive results due to our efforts in the Oakview, Talbert/Beach and Huntington Center project areas. Redevelopment is an impnrtant tool to face the challenges of the 1990s. Article 13(b) of the California Constitution (the Gann limit) is also a very important issue facing Huntington Beach as well as many other local governments. The Gann limit allows the City's expenditures from "proceeds of taxes" to grow from fiscal year 1978-- 79 only by a factor Lvmprted from population growth and inflation. The inflation of the late 19709 and early 1980s lulled many local governments into believing that this limitation would not ever become a concern. however, recent economic growth and low inflation have reversed the earlier trend. There are currently several proposed ..y legislative amendments to this law that will be brought before the California voters in the June, 1988 election. We are hopeful that these proposed legislative changes will correct meaae inequities of the current law. If not, it is possible that in two to three years, Huntington Beach may approach its Gann limit. The state and national eaananies are in a state of uncertainty. The economic health of. Huntington Beach in in many ways related to the economic health of the country. -; Record federal budget deficits, foreign trade deficits and the recent stock market volatility threaten to end the recent economic expansion. The City must do everything possible to ensure that our City will be able to maintain current service levels in .� the event of a significant national or local recession. SIQ'+iIFI(al� I�O['AL � There were significant economic events in the Orange County area and particularly Huntington Beach during the year that will have a financial impact on the City. The dramatic drop in mortgage interest rates during the year caused a real-estate boom in Huntington Beach. The median resale price of an existing hems in orange County increased to over $168,000 at year end from approximately $132,000 at the beginning of the year. This should result in substantially increased property tax revenues in the future as resales occur. Interest rates been climbing again near the end of the fiscal year and the iTpact on the real-estate market is unclear at this time. _) Also, low-interest auto rate loans combined with Federal income tax changes caused many people to purchase automobiles during the late months of 1986. Since Huntington Beach has many auto dealerships, this caused a significant increase in sales tax revenues. This was a one-time occurrence. DEPEASANM OF POETIC FACII.I UM R4MON Dams _1 In July, 1.986 the Huntington Beach Civic Improvement Corporation was formed which formed which provided for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- First Issue, totalling $7,010,000. The Civic Improvement Corporation issued $20,000,000 of Certificates of Participation to provide for this defeasance. The City plans to construct parking structures in the Main/Pier project area of the Redevelopment Agency with the net proceeds $11,682,978. -- -xii- T) i 1 + C r t ; SIINME Marr In accordance with the Single Audit Act of 1-984, the City's grant programs which utilize Federal funds, either directly or passed through from state or county agencies, have been subjected to audit requirements of the Office of Management and Budget. This included testy of compliance with Federal laws and regulations and an 1 organization-wide examination of financial operation.. The results of this expanded audit of grant activity are included under separate cover. Copies of the report are available from this office. , E*II i NCIAL RFMcR = CFXPIFICA'I The City has prepared an easily readible and efficiently organized Comprehensive Annual Financial Deport. The City'► report for the fiscal year ending June 30, 1986 has been given appropriate recognition from the Government Finance Officer's Association (GFOA) and the California Society of Municipal Finance Officers (CRIED). The GFOA awarded the City a Certificate of Achietement for Excellence in Financial Reporting which is the highest fc.-m of recognition for financial reporting that the GEM awards. The certificate is valid for one year only and is awarded only to cities whose reports conform substantially with high standards of public financial reporting. The C9IE10 awarded the City a Certificate of Award for Outstanding Financial Reporting. This is also the highest form of award given by the CRIED. We believe that this year's report continues to conform to the requirements of both ~ award programs and we are submitting it to both organizations to determine its eligibility for another award. The City received similar recognition for its Anmia1 Budget for 1986/87 from both the GEM and CRIED. We are one of very few cities to receive recognition for both cur Annual Budget and Comprehensive Annual Financial Report. r • -X r kin I i 1 i kr 1 f 1 -} We wish to thank the City Council and the various City departments for conducting the fiscal affairs of Huntington Beach in a responsible and progressive manner. M. would also like to thank the members of the Accounting Division, especially Wayne Lee, .� Accounting officer and Robert Sedlak, Principal Accountant for their work in the } preparation of this report. We would also like to tatce this opportunity to fledge the retirement of Warren G. Hall, City Treasurer who retired on August 17th, 1987 and to thank him for his nineteen years of dedicated service to the citizens of Huntingt-on Beach. 1 ~ • 7 DAN T. VILLRLIA Dir" f F' ti ROBERT J. FP.ANZ Deputy City Administrator/ Administrative Services Department i -xiv- CITY OF HUNTING70M HEACB PRINCIPAL CITE OFFICIALS CITY COUNCIL Jack Kelly Mayor :iohn Erskine Mayor Pro-Tem Wes Banriater Councilperson Ruth Finley Councilperson Peter Green Councilperson Thomas Mays Councilperson Grace Winchell Councilperson OTHER ELECTED OFFICIALS Donald L. Watson City Treasurer Gail Hutton City Attorney x Alicia Wentworth City Clerk I ' ADMINISTRATIVE OFFICIALS Paul Cook Interim City Administrator/ Public Works Director Robert J. Fianz Deputy City Administrator Douglas LaBelle Deputy City Administrator James Palin Deputy City Administrator Melvin Bowman Community Services Director Raymond Picard Fire Chief G.L. Payne Police Chief Dan T. Villella Director of Finance - Fnow PEOKE City Of CITY carNrak Huntington ]beach Organization Chart GTY A AWIINIiT1iATOR CITY CITY TREASURER ATT1011MY CITY CLERK 1KM1MG1O1 iIIK>t x FOi.ICf FIRE F1iiLIC WORKS COMMUNITY ADMINISTRATIVE COMMUNITY OEVELOPMEBT SERVICES SEA6lm Jr ' UNIFORM FIRE JDivis IN PAI VEIMOM ENGINEERING Pi.AtiilYIIIiG tEliSaWlrEL LIBRARY H RECREATION i ADWN. QPFAATIOINS HWATER IlUiLOIMG HREAL. NUYAlY lmvm iN PROPERTY RESOMAN YEStIGATION EMERGENCY NGustmet FINAIrICE OIVISiON MVICU REDEVELO►. iEAClt nVAOICU INFORMATION CUiLTURAL Mum" MAINTENANCE INFORMATION ARiT BENEFITS Certificate of Achievement Excellence for �- in Financial Reporting Presented to City of Huntington Beach, California rl For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1986 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Car..da to governmental units and public employee retirement systems whose comprehensive annual financial .�. reports (CAFR's) are judged to substantially conform to program standards. TIMMS ' _ President SLA Executive Director •xvii» CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS DEDICATED TO THE PROFESSIONAL ADVANCEMENT OF MUNICIPAL FINANCE ADMINISTRATION 1WIWI te FOR OUTSTANDING FINANCIAL REPORTING PRESENTED TO THE Cl"t nr In ronBeach This certificate is issued in recognition of meeting professional standards and criteria in reporting %,hich reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared for the fiscal year f 965/1966. Chair,Professional SMnftFd ComintUft Cent fe � a "1 1 i f I i I I � I i I I i I i `i I i i - I I i DIEHL,E�/ANS N7N l: :11 111/M IxINAuI n 17 n ItxMr c rA AII I &C{r✓)LR-A1PANY I.ml/V nr Mt f.l rA I Cf R11F 1 F I)1'UBI1C ACCOUNTANTS Oil M.1,A AI.I1AN{I 1.ll'A KA1111.1 MINIRA10(I•A +� ArA�IM,4M MKIU�N/.A{l{x.+nAlAIIIMNgATx%N� NN 11411 M IL1 MN 91•A nuur n IMM ILANr 1910 NORM BU811'SUEE( CPA 1 5AWA ANA•CAUFORNIA 9rA)&-2A44 nxx lASM nlllcxvsw.ClA PHONE(714)3424453 September 9, 1987 ACCOUNTANTS' REPORT '1 l City Council City of Huntington Beach Huntington Beach, California 1 We have examined the general purpose financial statements of the City of A Huntington Beach, as of and for the year ended June 30, 1987, as listed in the table of contents. Our examination was made in accordance with generally —� accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedure# as we considered necessary in the circumstances. In our opinion, the general purpose financial statements referred to above present fairly the financial position of the City of Huntington Beach at June 30, 1987, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving effect to the changes with which we -1 concur, in the method of accounting for contributed capital, equipment purchases, sales tax revenue, and land held for resale as more fully described in Notes 88, 15 and 18 to the financial statements. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and individual account group financial statements are presented for purposes of -I additional analysis and are not a required part of the general purpose financial statements of the City of Huntington Beach. Such information has been subjected to the auditing procedures applied in the examination of the general purpose financial statements and, in our opinion, is fairly stated in all material i respects in relation to the general purpose financial statements taken as a whole. The other data included in the Statistical Section is presented primarily for supplemental analysis purposes. The scope of our examination did not include the statistical information and we do not express an opinion or any other form of assurance concerning it. -1- On RX OMMS AT. ONE CMC PLAZA SURE M 2965 KOOSMLT ST. 120 WEST WOODWARD AVE. NEWr`ORT BEACH,CA 9*4).S9!1 CARLS/AD,CA 9M-2269 ESCONDIDO,CA 920259M (714)M4.606 (619)M2363 (619)741.7141 CITY OF HUNTINGTON BEACH ~ COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS � June 30, 1987 04 Governmental Fund Types 11 Special Debt Capital ASSETS General Revenue Service Projects 04 Cash and investments 1 ! (Notes lc and 3) $ 10,884,333 $ 14,592,075 $ 1,773,079 $15,034,809 Cash with fiscal agent (Note 3) - - 5,045,537. 83,457 r Taxes receivable (Note lg) 1,890,934 - 31,958 1,263 if Accounts receivable 315,349 59,951 82,105 54,917 UnbiciaJ receivables - - - M Inventory (Note lj) 146,073 - - - Due from other funds (Note 8) 10000,000 - - Advancen to other funds (Note 8) 11,750,547 5,144,301 - Due from other agencies 462,462 598,453 - - Land held for resale (Note ld) - - - 3,009,109 ( i Property, plant and equipment, net (Notes Id and 12) - - - - Amount available for debt service - - - - Amount to be provided for payment of long-term debt - - TOTAL ASSETS 26,4494698 $ 20,394,780 § 6,932,674 $18,183,555 11 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable $ 1,341,838 $ 1,097,507 $ 6,732 $ 8,050 Accrued expenses 2,212,343 17,940 - 11,045 sw Deposits 776,586 18,259 - 50,000 Due to other funds (Note 8) - 1,000,000 - - Advanees from other funds (Notes 8 & 10) - - I Deferred compensation (Note 4) - Claims payable (Note 7) - - - - Deferred revenue (Note 5) 3,374,403 4,082,586 Long-term debt (Notes 10 and 11) - - Compensated absences payable (Notes le, 10 and 11) - - t TOTAL LIABILITIES 7,705,170 6,216,292 6,732 69,095 ;. FUND EQUITY: Contributed capital - - - - Investment in general fixed assets - - - - Retained earnings: r� Reserved (Note 13) - - - - Unreserved - - - - Fund Balances: Reserved (Note 13) 10,456,808 5,248,872 6,925,942 18,214,460 Unreserved: �- Designated (Note 13) 1,5630034 1,656,417 - - ' Undesignated 6,724,686 7,273,199 Total retained earnings/ ►.. fund balances 18�7444528 14,178,488 0,925,942 1801149460 TOTAL LIABILITIES AND FUND EQUITY , 26,449,698 $ 20,394,780 $ 6.932,674 $18,183,555 See accountants' report and notes to financial statements. 1 ' -2- Mr SCHEDULE A-1 1 Account. Croups Proprietary Fund Types Fiduciary General General Totals Internal Fund Type Fixed Long-Term (Memorandum Only) Enterprise Service Astency Assets Debt _ 1987 1986 i ..� $ 6,070,499 $ 9,184,226 $ $ - $ - $ 57,539,021 $ 37,842,745 1,485,499 - 8,407,725 - - 15,022,213 15,642,425 - - - - 1,924,155 499,936 514,021 519172 560,701 - - 1,638,216 1,292,226 929,749 - - - - 929,749 803,105 ' 146,073 146,073 - - - - - 1,000,000 - 7 171,770 - - - - 17,066,618 11,937,268 j - - - - - 1,060,915 777,179 3,OU9,109 1,227,109 36,244,075 10,611,681 - 64,793,754 - 1110649,510 110,761,157 - - - - 6,925,942 6,925,942 60864,968 - - 412645.432 41,645,432 23.738,756 ' $45_,415,613 $19,847,079 j8,968,426 $64,793,75k $48,571.374 $259,556,953 $211.532,947 $ 879,409 $ 85,472 $ - S - $ - $ 3,419,008 $ 2,748,222 147,823 33,471 - - - 2,422,622 2,140,248 821,217 - - - - 1,666,062 1,405,378 - - - - - 1,000,000 - 943,841 - - - 16,122,777 17,066,618 11,937,268 8,939,926 - - 8,939,926 7,253,342 7,167,000 - - - 7,167,000 5,625,000 - - - - - 7,456,989 5,358,660 7,407,162 - 28,500 - 28,873,047 36,308,709 23,181,749 `i 125,590 - - 3 575,550 317010140 3,380 978 10,325,042 7,2851943 8,968,426 - 48,571,374 89.148,074 63.030,845 34,654,835 11,793,345 - - - 46,448,180 36,730,204 .J - - - 64,793,754 - 64,793,754 72,937,969 -� 16,676 408,000 - - - 424,676 872,231 419,060 359,191 - - - 778,851 75,622 - - - - 40,746,082 21,248,367 - - 3,219,451 4,104,558 - - - 13 L997,885 12,533,151 35,090,571 12,561,136 ...._� 64,793,754 - 170,408,879 148.502.102 $45,415,613 $19.847,079 $8_,968,426 $64,793,754 $48,571-,,374 $259,556,953 L5211,532,947 -3- CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the year ended June 30, 1987 orGeneral I Fund ' REVENUESt Property taxes (Note IS) $ 21,174,423 A Other taxes 28,698,414 Licenses and pei-tnits 3,308,990 Fines, forfeitures and penalties 2,095,714 From use of money and property 4,397,997 S From other agencies 7,880,417 Charges for current services 2,799,219 Other 456,006 TOTAL REVENUES 70,811,180 EXPENDITURES: Currents City Council 82,121 City Administrator 555,452 City Treasurer 281,848 City Attorney 563,804 1 City Clerk 152,622 Admiuistrative services 2,680,065 Community development 1,849,015 Fire 11,186,607 Police 20,511,085 r ! Community services 5,959,254 Public works 14,567,248 Non-departmental 7,708,794 Capital outlay 1,027,609 Debt Service (Note 10)t Principal - Interest - r TOTAL EXPENDITURES 67,125,724 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 3,685,456 r- OTHER FINANCING SOURCES (USES)s Operating transfers in 1,284,790 `- Advances from General Fund (Note 10) - Proceeds of long-term debt (Note 10) - Operating transfers out (3,017,633) Loss on Investments (Note 3) (470,222) Other (Note 16) TOTAL OTHER FINANCING SOURCES (USES) (2,203,065) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 1,482,391 FUND BALANCE - BEGINNING OF THE YEAR 12,430,480 Prior period adjustments (Note 18) 1,098,900 Residual equity transfers in 3,732,757 Residual equity transfers out - , FUND BALANCE - END OF YEAR 18 744,5 -1 b.. i See accountants' report and notes tc financial statements. -4- t i �, i t -- SCHEDULE A-2 1 i 1 Special Debt Capital Totala Revetwe Service Projects (Memorandum Only) ' Funds Funds Funds 1987 1986 $ - $ 1,630,923 $ 281,747 $ 23,087,093 $ 19,427,642 j 186,548 - - 28,884,962 27,797,491 1,609.559 - 4,918,549 4,427,014 - - 2,095,714 1,973,670 1,586,250 457,773 1,192,052 7,634,072 5,718,196 , 6,542,243 - - 14,4220660 it,,143,061 - - - 2,7990219 2,349,967 - - 456,006 ;35,484 9,924,600 2,088,696 1,473,799 8G,298,275 76,5',2, 5 • - 82,121 90,029 154,500 - - 709,952 629,890 - - - 281,848 286,648 5630804 644,685 1520622 163,608 - - - 206809065 2,600,737 487,203 - 2,378,795 49715,013 3,825,545 - - - 11,186,607 10,251,710 8,346 - - 20,519,431 18,744,618 130,670 - - 6,0890924 50668,499 - - - 14,567,248 15,045,519 - - - 7,708,794 6,795,596 7,864,767 - 1,837,860 10,7300436 11,791,251 - 595,^00 - 595,000 960,000 -� 1.594 A011 1,594,011 886,950 8,645,486 21189,011 4.216,655 82,176,876 78,3@5,285 1,279,114 (100,315) (2,742,856) 2,121,399 (1,812,760) 22,728 2,137,412 2,625 3,447,565 4,647,943 - - 4,380*032 40380*032 4,913,841 - 14,017,187 14,017,187 216,100 „j (1,864,830) (2,625) (54,050) (4,9399138) (4,647,943) - - - (470,222) - -, - - 371,619 371,619 ' (1,842,102) 2,134,797 18,717,413 16,807,043 5.129,941 J (562,988) 2,034,482 15,974,557 18,9280442 3,317,181 14,741,476 6,864,968 2,622,043 36,658,967 34,568,895 J - - 1,277,109 2,376,009 - 2,004,376 - 5,737,133 - - (3,977,884) (1,759,249) 45.737,133) - 6 14,178,488 6 925,942 $,18,114,460 $ 57,963a418 $ 37,886,076 -5- I 1 CITY OF HUNTINGTON BEACH A COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES r For the year ended ,Lune 30, 1987 General Fund Variance - Favorable Budget Actual (Unfavorable) REVENUESs Property taxes (Note lg) $ 20,391,000 $ 21,174,423 $ 7E3,423 q Other taxes 29,637,100 28,698,414 (938,686) Licenses And permits 3,195,400 3,308,990 113,590 Fine,., forfeitures and penalties 2,195,000 2,095,714 (99,286) From use of money and property 3,994,500 4,397,997 403,497 From other agencies 7,3630600 7,880,417 516,817 Charges for current services 2,573,900 2,799,219 225,319 Other 512,402 456,006 (56,396) TOTAL REVENUES 69,862,902 70,811,180 948,278 f EXPENDITURES, ru Currents City Council 85,669 82,121 3,548 City Administrator 568,191 553,452 12,739 City Treasurer 289,888 281,848 8,040 City Attorney 567,783 563,804 39979 City Clerk 133,484 152,622 (19,138) Administrative services 2,7340699 2,680,065 54,634 Community development 1,860,533 1,849,015 11,518 Fire 11,267,922 11,106,607 81,315 Police 20,892,160 20,511,085 381,075 �- Community Services 6,139,17h 5,959,254 179,922 Public Works 15,967,564 14,567,248 1,400,316 Non-departmental 7,133,395 7,708,794 (575,399) r Loss on investments (Note 3) - 470,222 (470,222) Capital outlay 1,915,543 1,017,809 887,734 Debt Service (Note 10): Principal - - - Interest - TOTAL EXPENDITURES 69,556,007 67,595,946 1j960A061 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 306,895 3,2151234 Y,908,339 OTHER FINANCING SOURCES (USES): Operating transfers in 1,300,000 1,284,790 (15,210) Operating transfers out (3,,017,633) (3,017,633) - TOTAL OTHER FINANCING SOURCES (USES) (1,717,633) (1,732,843) (15,210) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,410,738) 1,482,391 2,893,129 FUND BALANCES - BEGINNING OF THE YEAR 12,430,480 12,430,480 - Prior period adjustments - 1,098,900 (11098,900) Residual equity transfers in 3,732,757 3,732,757 - Residual equity transfers out - FUND BALANCES - END OF YEAR S 14,762,499 $ 18,744,528 L..-34992,029 I See accountants' report and notes to financial statement&. -6- ►,. i SCHEDULE A-3 I i Special Reverue Funds Debt Service Funds Variance - Variance - -1 Favorable Favorable i Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ - $ - $ 1,349,400 $ 1,630,923 $ 281,523 213,000 1860548 (26,452) - - - 1,405,000 1,609,559 204,559 - - - 1,105,000 1,586,250 481,250 653,400 457,773 (195,627) 11,739,350 6,542,243 (5,197,107) - - _ 100,000 - (100,.000) 14,562,350 9 924 600 7(A ,637,750) 21002,800 2,086,696 8,54896 { .� 184,637 154,500 30,137 = i 140,923 487,203 (346,280) - - 17,042 8,346 8,696 - - 161,765 130,670 31,095 - - - -' 23,665,748 7,864,767 15,800,981 - - - I' �J • - 595,000 595,000 - '� - - - 1,795,943 1,594,011 201,932 1 24A170,115 8,645,486 15,524,629_ 2,390,943 2,189,011 201,932 (9,607,765) 1,279,114 (20,162,379) (388,143) (100,315) 287,828 J 22,728 22,728 - 2,137,422 2,137,422 - �; (1,8609040) (1,864,830) 15,210 (2,625) (2,625) 7 (1,857,312) (1,842,102) 15,210 2.t.134,797 2,134,797 - (11,465,077) (562,988) 10,902,089 1,746,654 2,034,482 287,828 14,741,476 14,741,476 - 6,864,968 6,864,968 - 2,004,376 2,004,376 - (3t977,884) (31977,884) - $ 3t,276„ ,399 $_14,178,488 $ 10,902,089 § 6,638,114 $ 6,925,,942 287,828 (CONTINUED) -7- I I SCHEDULE A-3 G7 , r CITY OF H UNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) [I f GENERAL, SPECIAL. REVENUE AND DEBT SERVICE FUND TYPES For the year ended June 30, 1987 Totals (Memorandum Only) Variance - Favorable Budget Actual (Unfavorable) REVENUES: PQ Property taxes (Note lg) $ 21,740,400 $ 22,805,346 1,064,946 � Other taxes 29,850,100 28,884,962 (965,138) Licenses and permits 4,600,400 4,918,549 318,149 Fines, forfeitures and penalties 2,195,000 2,095,714 (99,286) p From use of money and property 5,752,900 6,442,019 689,119 From other agencies 19,102,950 14,422,660 (4,680,290) Charges for current services 2,573,90U 2,799,219 225,319 Other 612,402 456,006 (156,396) TOTAL REVENUES 86,428,052 82,824,475 (3,603,57.7) EXPENDITURES: Current: City Council 85,669 82,121 3,548 City AdmLnstrator 752,828 709,952 42,876 City Treasurer 289,888 281,848 8,040 City Attorney 567,783 563,804 3,979 � City Clerk - 133,484 152,622 (19,138) Administrative services 2,734,699 2,680,065 54,634 J Comuaunity development 2,001,456 2,336,218 (334,762) Fire 11,267,922 11,186,607 81,315 Police 20,9090202 20,519,431 389,771 Cnmmunity services 6,300,941 6,089,924 211,017 Public works 15,967,564 14,567,248 1,400$ 16 1 Non-departmental 7,133,395 7,708,794 (575,399) Capital outlay 25,581,291 8,892,576 16,688,715 r" Debt Service (Note 10): Principal 595,000 595,000 - Interest 1,795,943 1,594,011 201,932 r- TOTAL EXPENDITURES 96,117,065 77,960,221 18,1561844 EXCESS OF REVENUES OVER EXPENDITURES (9,6B9,,013) 4,864,254 (21,760,421) OTHER FINANCING SOURCES (USES): `- Operating transfers in 3,460,150 3,444,940 (15,210) Operating transfers out (4,900,298) (4,885,088) 15,210 Loss on investments (Note 3) - (470,222) (470,222) TOTAL OTHER FINANCING SOURCES (USE'S) (1,440,148) (1,910,370) (4701222) EXCESS OF REVENUES AND OTHER SOURCES OVER -- (UNDER) EXPENDITURES AND OTHER USES (11,129,161) 2,953,884 14,083,045 FUND BALANCES - BEGINNING OF THE YEAR 34,026,924 34,036,924 - Prior period ad,juetmenta (Note 18) - 1,098,900 (1,098,900) Residual equity transfers in 5,737,133 5,737,133 - Residual equity transfers out (3,977,884) (3,977,884) - FUND BALANCES - END OF YEAR 24,667,012 39,848,957 $ 15,181,945 �. See Accountants' report and notes to financial statements. "8" � SCHEDULE A-4 CITY OF HUNTINGTON BEACH COMBINED STATEMENT OF REVENUES, EXPENSES A14D CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES For the year ended June 30, 1987 Totals Internal (Memorandum Only) -, Enterprise Service 1987 _ 1986 OPERATING REVENUES: Charges for services $ - $ 8,425,742 $ 8,425,742 $ 7,202,059 Water sales 8,977,514 - 8,977,514 7,912,216 Rentals 798,308 - 798,308 781,077 Other 233,792 - _ 2333,792 273*607 1 TOTAL OPERATING REVENUES 10,009,614 8,425,742 _ 18,435,356 16,168,959 --, OPERATING EXPENSES:Water purchases 2,585,733 - 2,585,733 2,881,891 Administration 537,878 1,301,137 1,639,015 2,087,043 Engineering 571,250 - 571,250 159,919 Production 2,262,538 - 2,262,538 2,311,984 Maintenance 975,737 - 975,737 1,544,692 Water Meters 501,987 - 501,987 542,825 Contribution to general fund in lieu of taxes 1,328,048 - 1,328,048 1,186,132 Workers compensation claims - 1,598,000 1,598,000 934,635 Liability claims - 1,768,456 1,768,456 1,792,779 Employee medical claims - 2,392,456 2,392,456 1,380,738 Depreciation (Note ld) 1,323,886 1 ,612,867 _ 2 j936,753 1,393,643 TOTAL OPERATING EXPENSES 10,087,057 89672*916 18.759,973 16.216.281 .J 1 OPERATING INCOME (LOSS) (77,443) (247,174)_ (324,617) (47,322) ') NON-OPERATING REVENUES (EXPENSES): Interest income 534,549 666,543 1,201,092 1,404,284 Interest expense (620,801) -� (620,801) (629,,251) TOTAL NON-OP:RATING REVENUES (EXPENSES) (86,252) 666,543 _ 580,291 775,033 _J NET INCOME (LOSS) (163,695) 419,369 255,674 727,711 RETAINED EARNINGS (DEFICIT) BEGINNING OF YEAR 599,431 348,422 947,853 (571,095) PRIOR PERIOD ADJUSTMENT - � 79111237 .J RETAINED EARNINGS - END OF YEAR $ 435,736 $ 767,791 1 1,203,527 947,853 - See accountanto' repurt and noteo to financial statements. -9- s SCHEDULE A-5 CITY OF IIUNT11IGTON BEACH COHBENED STATEMENT OF CHANGES IN FINANCIAL POSITION - ALL PROPRIETARY FUND TYPES For the year ended June 30, 1987 Totals E Internal (Memorandum Only) _ SOURCES OF HORKING CAPITAL: Enterprise Service Fund 1987 1986 Operations: I Net loss (loss) $ (163,695)$ 419,369 $ 255,674 $ 727,711 Loss on sale of plant property and equipment 33,869 57,987 91,856 Depreciation 1,323,886 16612.867 22936,753 1,393,643 Working capital provided PQ by operations 1,194,060 2,090,223 3,284,283 2,121,354 Increase in belf-insurance claims payable - 1,542,000 1,542,000 439,000 Sale of plant, property and equipment - 42,374 42,374 2,770 i� Contributions (Notes 8 and 15) 1,257,061 16,620,748 17,877,809 1,794,978 Amortization of Certificates ?14 of Participation Discount 12,795 - 12,795 - Net Reduction in restricted assets 6,871 - 6,871 (32,887) � Increase in advances to other funds 943BE41 - 943,841 TOTAL SOURCES OF WORKING i CAPITAL 3,414,628 20,295�345 23,709,973 4,325.215 USES OF WORKING CAPITAL: Increase in property, plant III and equipment 1,545,692 17,840,300 19,385,992 3,335,506 Decrease in long-term notes/bonds 275,467 - 275,467 140,076 Decrease in compensated absences 22,481 - 22,481 26,596 Increase in advances from other funds 171,770 - 171,770 - r^ Contributions to Park Acquisition. and Development Fund 832,430 832,430 - TOTAL USES OF {CORKING CAPITAL 2,847,840 w 17,840,300 209688,140 32502,178 NET INCREASE IN WORKING r _ `- CAPITAL $ 566,788 $ 2,455,045 $ 3.021,833 _823,037 ELEMENTS OF hET INCREASE (DECREASE) IN WOP.KING CAPITAL: Cash and investments $ 371,421 $ 2,506,059 $ 2,877,480 $ 761,461 Accounts receivable 126,869 4,418 131,287 (63,896) ,__ Dice from other funds (24,428) - (24,428) 2,220 Prepaid expenses and other assets - - - (136,010) Accounte payable 63,821 (55,432) 8,389 31,507 Due to other funds 111,411 - 111,411 - Interest payable 154 - 154 215,450 Deposits (65,875) - (65,875) 25,768 ►-- !Current portion of long-term debt (16,585) - (16,585) (133463) NET INCREASE (DECREASE) IN WORKING CAPITAL 566,788 $ 2,455,045 S 3.071,833 $ 823,037 �r Sae accountants' report and notes to financial statements. -10- w i • ,.. CZ ry OF HUNTINGTON BEACH NOTES TO FINANCIAI. STATEMENTS JUNE 30, 1987 1. SIMUM Oa SICNIFIOW A n"ITING FOLICIM: i a. Description of klmd Types and Am.-ow, Groups: '1 The City of Huntington Beach (City) accounts for its financial Position and operations in accordance with generally accepted accounting principles for governmental units prescribed by the Government Accounting Standards Hoard (GASH). The City uses various funds and account groups to record its financial activity. A fund or account group is an accounting entity with a self-balancing set of accounts established to record fiche financial position and results of operations of a specific governmental activity. The City maintains the following fund types and account groups: Governmental Fund Types: 1 The General Fund is used to account for all financial activity that is not required to be accounted for in another fund. Special Revenue Funds are used to account for the receipt and expenditure of monies legally restricted to a specific use. Debt Service Funds are used to account for the receipt and disbursement of w� monies used for the payment of general and redevelopment long-term principal and interest. Capital projects Funds are used to account for monies used for the acquisition and construction of major capital facilities. `1 --' Proprietary Fund Types: Enterprine Funds are used to account for City operations that are financed in a inanner similar to private businesses. Enterprise funds are used when the City wishes to recover the cost of a particular service furnished to See accountants' report 11 CITY OF UUNTINGTON I3BACII i NOTES TO FINANCIAL STATEMENTS DA (continued) DUNE 30, 1987 fl 1. SL"4%qy OF SIGNIFICAW AOMtWI'IP1(' FOUCIW: a. Description of Fund types and Account Groups (Continued): the public on a cost (expenses including depreciation) rot sement i�ebas3iii ke � or when the City wishes to ma 1 Internal Service Funds are used to account for goods and services provided by one department- of the City to another on a cost-reimbursement basis. me 1 Piduci.ar* EUnd Typie: i e�timd$ are used to account for assets held by the City as an agent for individuals or Private organizations. i Account Groups: General Fixed Assets Account G is used to record and control The Gene other than those awned by proprietary capital assets awned by the City , fund types. The General La Term Debt Account Groups us ed to aunt for the r• usmatured long-term liabilities that will be financed from gavernmental funds. b. Basis of Accounting: agency Governmental and a fund types use a modified accrual basis of f accounting. The only exception is that the assets of the aTployee Deferred Compensation fund, an agency fund, are reported at :market value rather than at cost in accordance with GASB Statesmm_nt 2. Revenues are recognized when they are susceptible to accrual. This means that they trust be measurable and available to finance current period expenditures. Revenues susceptible to accrual are received within 60 days after year-end See accountants' report 12 I li I CITY OF HUNTINGTON UEACH NOTES TO FINANCIAI, STATEMENTS (continued) JUNE 30, 1987 1. SLM JtY OF SIGNIFICANT ACODUM VG POLICIES ((JC.[ rt1VCW): i b. Basis of Accounting: and include property taxes, sales tax, federal and state grants and subventions, interest and certain charges for current service. Revenues which are not susceptible to accrual include certain licenses, permits., fines and forfeiture and other miscellaneous revenue. Cxpeaditures, other 7 than principal and interest on long-term debt are recorded when incurred. Proprietary fund types are accounted for on the accrual basis. Accounting for these fund types normally follows accounting for private businesses. Revenues are recognized when earned, regardless of the date of receipt. Expenditures are recognized when incurred. T' c. Investments: Investments are stated at the lower of cost or market value except that market value declines below cost are not recorded unless such declines are considered permanent (see note 3). -' d. Property and Equipment: .-a Acquisitions of property and equipment are generally recorded are expenditures in governmental fund types at the time of purchase and are -� capitalized at cost in the General Fixed Assets Account Group. Land held by the Redeveloprent Agency for resale is capitalized at a& lower of cost or market in the Redevelopment Agency Capital Projects Fund. Expenditures for infrastructure (roads, curbs, sidewalks, sewers, etc.) are not capitalized as such assets are immovable and generally of valus only to the City. No depreciation is provided for any asset capitalized in the General Fixed Assets Account Group. a J See accountants' report 13 CITY OF UUNrINGTON BEACH N NOTES TO FINANCIAL STATEMENTS (continued) !�+ JUNE 30, 1987 1. SUIT M RY OF SIGNII?ICWr ACCOURrM POLICIES (C0NrLWW): i d. Property and Equipment: r Property and equivent acquired by proprietary fund types are capitalized at cost at the time of purchase in the fund making the purchase. Asp. is acquired from gifts or contributions are capitalized at fair market value at the time received, or in the case of water fixed assets, at City Council acceptance date. Depreciation for both donated and acquired assets is calculated on the straight-line method over the estimated useful lives of the assets shown below and charged to the operations of the respective fund. Production, pumping, transmission 7 and distribution plant - 10 to 50 years General plant- 20 to 50 years i TransFortation equipment- 5 to 30 years e. Employee Canpensated Absences: The City records the cost of vacation and nick leave when paid in the governmental fund types and when incurred in the proprietary fend types. At .Tune 30, 1987, the unfunded liability for vacation and sick leave - accumulated by the City's governmental funds totalled $3,575,550 (note Ing). The City has recorded this amount in the General inng-Term Debt - Account Gaoup with the asmxnption that these amounts will be paid with future finzmci.al resources rather than currently available spendable resources. In the proprietary fund types the liability of $125,590 has been recorr,�l. These amounts represent the "cash surrender value" of all accunulatel vacation and sick leave which is the amount that would be paid to employe-es if they terminate. Vacation is paid at 100% of the accrued amount while sick leave is paid at varying amounts depending on the eWloyece's contract. See accountants' report 14 L. i CITY OF HUNTTNGTON BEACH TOTE'S TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 1. SQPM(Y OP SIGNIFICANT A00DSY+7 = POLICIL3 (00N`rINM): -� f. Budgetary Accounting: The City Council annually adopts a budget by June 30th of the prior fiscal year. The budgeted expenditures become the appropriations to the various departments. Estimates are also made for revenue which, along with the appropriations, are used to compute the budgetary fund balance. This appropriated budget, as defined by GASB Code Section 2400.109, covers substantially all City expenditures with the exception of capital improvement projects (mapital projects funds) carried forward from prior --� years, which constitute a legally authorized non-appropriated budget. The City Council may amend the budget at any time. The City Administrator may transfer funds from one object purpose (personal services, operating expenditures or capital outlay expenditures) to another within the same department without changing the total budget of a department. A department head may transfer funds fran like object categories of the same department. Any changes to a total departmental budget must be approved by the City Council. Expenditures may not exceed appropriations at the departmental level. All unused appropriations lapse at year-end. Budgets for governmental fund types are adopted on a basis substantially consistent with generally accepted accounting principles as legally required. There are no significant non-budgeted expenditures. Revenues for special revenue funds are budgeted by entitlements, grants and estimates of future development and economic growth. Expenditures and transfers are budgeted based upon available financial resources. Budgetary data is presented for the General, Special Revenue and Debt Service Funds. Budgetary information is not presented for the Capital Projects funds since these are budgeted on a long-term project by project basis. The City utilizes an etcunbrance syntem as an aid in controlling expenditures. Encumbrances represent amz)unts committed for goods or services for which a purchase order has been issued and the goods have not been received or the services have not been rendered. At year-end, all - outstanding encumbrances are rer;;ortead as reservations of fund balance in governmental fund types. These outstanding enc-unibran:es are then reappropriated into the new fiscal year. See accountants' report 15 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) r' JUNE 30, 1987 I. CRY OF SI(NIFICANT AOCrAWrIM EK)LICIFS (00WINUED): f. Budgetary Accounting: The budgetary information presented for estimated revenue and appropriations represent the original budget adjusted for changes made by action of the City Council, City Administrator or Department 1". All changes to the original, adopted appropriations (expenditures plus other financing uses) are summarized belrw (funds with no changes are not shown): P" i � fund original Revised rp General $70,634,126 $72,573,640 Special Revenue Funds: Gas Tax 11,613,000 15,612,258 Sewer 688,200 739,514 ' Planned Local Drainage 410,000 1,666,430 Public Camimications 206,040 220,180 r' I� Grants 1,107,000 4,638,721 i Park Acquisition and Development 2,812,599 2,08,550 ; Debt Service •. Civic U provement Corporation - 965,000 9. property Tax Revenue: Property tax in California is levied in accordance with article 13 A of the California constitution. The basic levy is a countywide-levy of one percent of total assessed valuation. This basic levy is allocated to county government, school districts, cities and special districts. Additional levies require two-thirds approval by voters and are allocated directly to the specific government unit. Property tax revenue is recognized in the fiscal year levied provided that the revenue is collected during the year or within 60 days of year-end. I 4 J -- ISee accountants' report 16 1 CITY ON HUNTINGTON DRAC11 NOTES TC FINANCIAL STATEMENTS (continued) JUNE 30, 1907 ' 1. SOWAPAY OF SIGNIFICARr A000UR17 rIG FCUCIFS (cURrIIrI W) j g. Prcperty Tax Revenue: -� The County acts as a collection agent for property tax for all of the local governmental units. Property taxes are normally collected twice per year. The property tax calendar is as follows: Lien Date- March Inc of prior fiscal year i Levy Date- July 1st Due Date, First Installment- November 1Cth -7 Due Date, Second Installment- February 10th Delinquent Date, First Installment- December 11th Delinquent Date, second Installment- February llth The taxes are remitted to the local governments periodic.Ally duw•ing the year. Below are shown the dates and percentages from the County (dater and percentages vary slightly from year to year) November 30th- 5% December 19th- 20% December 28th- 20 February 1st- Balance of First Installment March 28th-5% April 26th- 34% July 26i.h of next fiscal year- Balance of second Ins3tallmsment 1 h. Total Columns on Combined Financial statemnts: The canbined financial statements include total columns which aggregate the financial statements of the various iund types and account groups. The columns are designated "memorandum only" because the totals are not comparable to a consolidation since interfund transactions (with the exception of certain transactions betw.-en the City and entities which are part of the City's reporting entity described in note 2) are not el imir.3ted. See accountants' report 17 w I � i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS � (continued) JUKE 30, 1987 A 1 : 1. S[M4iRY OF SIGNZFICWr ACODUNTM EC.ICIPS WOMT W ED) 1N i. Measurement Focus: # ' The City's governmental funds are accounted for on a upending or on "financial flow" teasurement focus. This mans that generally only + current assets and current liabilities are included on their balance sheets. Statements of revenue, expenditures and changes in fund balance for governmental funds generally present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All proprietary funds are accounted for on a cost of services or "capital maintenance" reammement focus. 'this means that t� all assets and liabilities are included on their balance sheets. The fund equity amount represents total net assets., Proprietary funds are accounted for on a capital maintenance measurement focus. This means that r all assets and liabilities, whether current or noncurrent, are sham on the balance sheets. Their reported fund Equity represents total net assets. Proprietary fund operating statar.ents present increases (revenues) and decreases (expenses) in total net assets. j. Inventories: Inventories are accounted for on the purchase (expenditure) method. Expenditures for inventory are written off as incurred. Inventories of materials and Supplies totalled $146,073. This amount is recorded as an asset in the general fund with an appropriate reservation of fund balance. k. Allocation of Interest Income Among Funds: I The City pools all non-restricted cash for investment Fx=bases. Interest income is allocated monthly to the various funds based on the month-end _. cash balances. Interest income from restricted cash is recorded directly in the fund earning the income. . . I I See accountants' report 18 � I • CITY OF HUNTINGTON ©EACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1907 2. WX OF THE REIL'RTING ENrM: This report incorporates GASB Code Section 2100, "Defining the C,overnmsntal Reporting Entity," which outlines criteria to determine whet1wr a separate legal entity's financial information should be included in the City's financial statements. Based upon the statement's guidelines, certain separate legal entities have been included in the report. The criteria used in evaluating the different entities was oversight responsibility and financial dependency. Below is a description of each of these entities and how their financial activity has been evaluated and incorporated into this report: Huntington Beach Public Facilities Corporation (Public Facilities Corporation)- This entity was formed in 1970 to issue bonds to construct the civic center and library complexes. The City leases the facilities from the Public Facilities Corporation. The lease is a capital lease because title to the facilities passes to the City upon termination of the lease. The corporation's original governing body was appointed by the City Council. However, the governing board itself appoints any successors, The entire financial activity of the corporation is a lease with the City, the retirement of the bonds and the construction of various capital improvements. The City Council adopts an annual budget for the Public Facilities Corporation which cannot terminate its lease with the City if the City meets the tends of the lease. At the termination of the lease, the Public Facilities Corporation will dissolve and its assets will revert to the City. The assets and related revenue w-4 expenditures that are used for repayment of the bonds are recorded as a debt service fund. Assets used to construct capital improvements are recorded as a capital projects fund. The capital projects fund normally receives no revenue t other than interest. if additional funds are required for capital projects, they will be transferred from the the Public Facilities Corporation Debt Service Fund. since the Public Facilities Corporation u' is a part of the City's reporting entity, the capital lease between the City and the Public Facilities Corporation has been eliminated. Parkinq_Authority of the City of '.1antiR9!;9n Beach (Parking Nuthority)- This entity was formed in 1967 L;o issue bonds to construct off-street parking facilities. The City leases the facilities from the Parking Authority. The lease is a capital lease because even though the assets are retained by the Parking Authority at the end of the lease, the City Council my, by resolution, dissolve the Parking Authority and deed the See accountants' report 19 • w 1 i ` CITY OF HUNTINGTON BEACH I NOTES TO FINANCIAL STATEMENTS �u (continued) .;ONE 30, 1967 pp t 2. DesmapnoN GP Tw REPawrING F3J m (coRmI w) assets to the City. The Parking Authority's governing body is the City CoL-wil. At any time during the term of the lease the lease payment may be forgiven by resolution of the City Council if there is sufficient cash in the Parking Authority to mEN_t the debt service requirements. The assets and related revenue and expenditures that are used for repayment of the bonds are recorded in a debt service fund. Assets used to construct capital improvements are recorded in a capital projects fund. The capital projects fun-3 normally receives no revenue. If additional " funds are required, they will be transferred from the Parking Authority Debt Service Fund. Since the Parking Authority is a part of the City's reporting entity, the lea:;e has been eliminated. + ' Redevelopment agency of the City of Huntington Beach (Redevelopment Agency)- This entity was formed in 1967 to facilitate the renovation of older areas in the City. The City Council serves as governing body of and adopts an annual budget for the Redevelopment Agency. The Agency is financially dependent on the City for all of its operations. The tax increment revenue received by the Agency is recorded in a debt service fund and the capital improvements made are recorded in a capital projects fund. tmV-term advances from the City to the Agency have been recorded as a long-term advance on the respective fund's balance sheet ' with an appropriation reservation of fund equity. The Agency's debt is recorded in the General Long-Term Debt Account Group since these aw mts .T will be paid from future financial resources. Huntington Beach Civic Improvement Corporation (Civic Improvement Corporation)- This corporation was formed to provide for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- Iot Issue as described in Note 14. The Civic Improvement - Corporation issued $20,000,000 of certificates of p►Yrticipation to provide for this defeasance. The governing board of the Civic laprovement Corporation is the City Council which also adopts its annual budget. The - Civic Improvement Corporation has title to the Civic Center a mplex and leases it to the City. It is a capital lease because title to the Civic Center complex reverts to the City at the end of the lease. The lease cannot be terminated if the City meets all its financial obligations. The I See accountants' report 20 t i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1967 2. DESCRIPTION OF THE SING E NrM (O[WrDRW): assets pledged for repayment of the certificates of participation and the related revenues ajd expenditures are recorded in the Civic Improvement Corporation Debt Service FWA. The capital lease has been eliminated in accordance with NCGA Statement 5. i There are many other governmental agencies, including the County of Orange, various elementary school districts, the Coast Community College District, the Huntington Beach Union High School District and various q=ial districts which provide eervice; within the City. These entities have independently elected gwerni► boards and are not a component unit of the City of 11untington Beach an3 their financial information is not included in this report. 3. ChM AND RNESMERM: Cash and investments at June 30, 1987 consisted of the £.-flowing: Cash and investments $57,539,052 Cash with fiscal agent 15,022,213 _J 710tal $72,561,234 'J Irrvestments are stated at the lower of cost or market value with the _► exception of the investments of the Deferred compensation ruml which are recorded at market value. if market values decline below cost, no lose is recorded if such declines are considered temporary. The cost basin of Investment in Mutual Funds was adjusted downward by $470,222 to reflect a 7 permanent decline in value thrasgh June 30, 1987. As of September 9, .,.J 1987, there is additional, unrealized loss in these investments of $478,034. J See accountants' report 21 ■ w CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 IM 3. CASH AND (SDI: 1 The following disclosures are made in accordance with GA.cB Statenent *hvi>--r 3. s Authorized Inveutmentsa esi The City of Huntington Beach operates its pooled ca-., investnments under the "Prudent Man Rule" (California Civil Code sections 2261 et seq.). This allows a broad spectrum of investments as long as the investment is deemed prudent and allowable under legislation of the State of California (Gr,vernmP:,t. Code Section 53600 et seq.). Under the provisions of the City's investrent policy and in accordance with Section 53601 of the California Govermient Code, the City may invest in the following types of instrLawnts: �M a. Bankers accLTtances b. Negotiable certificates of deposit c. Commercial paper d. Bonds issued by the City " e. Obligations of the United States Treasury f. Federal Agency Obligations of: Federal Intermediate Credit Dank (FICBs) Federal Land Hank (EI.Bs) Federal Dome Loan Hank (FFRA-! Federal National Mortgage Asaxiation QW,%s) Small Business Administration (SBAs) Government Notiemil Mortgage Association (GRIAs) Tennessee Valley Authorities (TVAs) Student Loan Association Notes (Sallie Mae'm?s) See accountants' report 22 I I I i CITY OF HUNTINGTON BEACH MOTES TO FINANCIAL STATEMENTS (continued) JUNE 30,, 1987 3. ('I j 1 AND INVes'I EW11,� (CXJ[+Tfnwm): g. obligations of the State of California or of any local agency within the State of ailiforriia: The Incal Agency Investment Fund (IAIF) is a special fund of the California State Treasury through which any local government may pool investments. Each agency may invest up to $5,000,000 in this fund. Investments in IAIF are highly liquid and may be converted to cash within 24 hours. Investments with IAIF are secured by the full faith and credit of the State of California. h. Repurchase Agreements: Throughout the Year ending June 30, 1987, the City utilized overnight repurchase agreements for tergorary investment of idle cash. Such agreements Caere used on average of 20 to 22 thus 3 per month and generally did not exceed 10 0 of tie City's investment portfolio. i. Reverse-Repurchase Agreements: Although the City's invest-nent policy does not preclude the use of R-averse-Repurchase Agreements, the City did not borrow t-h.-vugh the use of reverse repurchase agreements at any time during the year. j. Medium-Term Corporate dotes k. Mutua; ands Collateral for Deposits Under provisions of the California Governaaent Code, California banks and savings and '-oan associations are required to secure a City's depoaitu by pledging government securities with a value of 110% of a City'n deposit. California law also allows financial insitutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City'H total deposits. J See accountants' report 23 i CITY OF HUNTINGTIrW BEACH l I NOTES TO FINANCIAL STATEMENTS (continued) r` JUNE 30, 19::7 ' 3. CASH AND IIAMMM (L'ONMIM): � m T'ne City Treasurer, at his discretion, may waive the collateral requirement for deposits which are fully insured ua to $100,000 by the r• Federal Deposit Insurance Corporation or the Federal Savings and Loan + j Insurance corporation. It is the City's policy to wAve the collateral I requirement if there is a higher interest yield on the investments. � Saf_ ,e aina Arrancxnts for Inwesrtments Under Sn tiona 53651 to 53653 of the California Government Code, as amender', the collateral underlying an agency's investments trust be delivered to the City. If U.S. Treasury Bills are used as the underlying collateral, the delivery may be made by "Look-entry" only. P- For all other collateral, the security mist be physically delivered to the city or a third-party custodial agent. Under Cali;arni.a Senate Bill number 2115, passed in 1986, a bank is r- i permitted co maintain tk a underlying securities in its Trust or Wekeepjag Department when acting as a third-party custodial agent. ; GASB Statement 3 requires the City's investments to be categorized as follows: Category 1- Insured or registered, or securities held by the City or its agent in the City's name. Category 2- Uninsured and unregistered, with securities held by Or! cocmterparty's trust departs---nt or agent in the city's name. Category 3-- Uninsured and unregistered, with securities held by the caur-terparty, or by its trust department or agent, hut not in the City's name. ,. See accountants' report 24 , i I CITY OF HUNTINCTON BEACH NOTES TO FINANCIAL STATEMENTS -' (continued) JUNE 30, 1987 3. CASH AND INVEMMM (M11'MM): Category Carrying Market 1 2 3 Anount Value rttepurctase agreement $ - $ -- S 4,125,000 $ 4,125,000 $ 4,125,000 EIUB Sec=itieFs 954,650 - - 954,650 970,000 Corporate Notes 1,476,590 - 2,249,254 3,725,844 3,722,720 Small Business Administration - - 230,300 230,300 241,815 Cash with Fiscal Agent - 15,022,213 15,022,213 15,022,213 Fulrtotal $2,431,240 $21,626,767 524,058,007 $24,081,748 Deposits which are 100% inrA ed or collateralized: Demand Accounts (749,866) (749,866) Certificate of deposit 36,341,000 36,341,000 _i Investment in IAIF 51000,000 51000,000 In ee'trvmt in Mutual Funds 7,912,093 7,912,093 Total Degonits end Invesbwnts $72,561,234 S72,584,795 At June 30, 1987, the City had deposits totalling S5,065,000 in out-of state financial institutions, which is in violation of California Code nection 53635. See accountants' report 25 i 1 I A CITY OF HUNTINGTON BEACH i NOTES TO FINANCIAL STATEKENTS (continued) JUNE 30, 1987 NI A Permanent City employees have the option of deferring a F�rtion of their � ! salary under Section 457 of the Internal Revenue Code. These amounts are invested in savings accounts, certificates of deposit and other prudent r� investments. The City retains title to these fiords until withdrawn by the employee, which may take place at termination or any later date. The assets of the plan remain subject to Ow general claims of ered3tors of the City. The amount of deferred sation y aoapfn payable at June 30, 1987 was $8,939,926 which represents the market value of the investmenta. t ` Since the City has a fiduciary responsibility to administer the plan, the ! assets are recorded in an agency fund in the City'u financial statements, 'fie assets of the plan mast remain the property of the City until paid or made available to the participants. S. i]PWERM kEVENUE: Certain revenues in goverrm-,,ntal funds due from the Redevelopwnt Agency have been deferrad until received from the Agency. Interest. on these i amounts acacrueR at 10% per annum. They are detailed below: I GENERAL E M: `T i Salext price c* the Huntington Breakers i apartment site in 1983 $ 405,536 Development fees deferred in 1994 and 1985 302,539 1987 Sale of land in Main/Pier project area 1,228,381 Interest on above amcvnts and on ge.^:eral fund advarcez frm 1978/79 to 1986/87 1,437,947 '.total General Fund $S,374,403 i I ' See accountants' report 26 4 CITY OF HUNTINGTON BEACH NOTES TV FINANCIAL STATEMENTS (continued) JONE 30, 1987 ' S. DEVERM RPVMM ((IHWH1 W1: S '`M REVEWE F[]IM: Park Acquisition and Developrent Eland: Sale of Etaerald Cove site to Redevelopmnt Agency 1,917,570 reveloEwnt fees deferred in 1985 247,664 Land sale proceeds paid to Emerald Cove 832,430 Interest on alxrre amounts 941 ,966 Total Park Acquisition and Develolxnent Fund 3,939,630 Sespr Fund: Developwnt fees deferred in 1985 43,459 Interest on above amounts 9,127 Total Sewer E'" 52,586 Planned Local Drainage: Development fees deferred it 1985 72,398 Interest on above amounts 1.5,A4 Total Drainage Fund 87,6( 2 -, Grant: raterred grant revenues 2,768 Total Special RE-,venue Fm-ds $ 4 082,586 -► Total Deferred Revenue ,$7,456,989 G. UETIREHM PIAN The City in a participant in the public Fuployees Retirement Syctcfn (PERS) of the State of California covering all of the City'sa permanent erployeexr -uxl temporary employees ift work over a specified number of hours during the year. Euployees are either considered s3afetlr or mis3cellarre-ous See accountants' report 27 r.. CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEKENTS «.. (continued) JUNE 30, 1987 A 6. 01*W PLAN (CONTM): + members. Contributions to the system are based on rat•ss set by PERS based on azrtain actuarial assumptions, such as length of eiaployment, estimated + salary rates, mortality rates, projected retirement benefits and ether factors. Pension costs are recorded .3s expenditures in government funds r. and expen.3e in proprietary funds when the related salary is incurred. + . There are separate plans for safety and iron-safety employees which are ,,separately recorded by PIM. Information below is for both plans oambined. Total pensioi expense for the year ending June 30, 1987 was p ' $7,095,774, cf which $1,103,393 was for prior service costs. Actuarial + information related to the plan was not available from PERS for June 30, 1987. fkwver, at June 30, 1.986, plan net assets available for benefits e" totalled $94,934,294 and the present value of the City's unfunded pe;-sion obligation for prior service costs totalled $12,013,715, which will be ! funded through the year 2000 through established contribution rates. The .•, actuarial present value of vested and non-vested benefits is not determined under the PERS system of ak:oounting. ;. 7. SEW n URVOR: The City is self-insured for workers' cor4wmsation, general liability and certain health claims. The self-insurance covers t1w first f000 150 for r WO_-Ret"s CQE1pensation claims and the first $75,000 0£ each health claim. Claim in excess of self-insurance limits are covered by insurance up to ,... $1,000,000 for health and the statutory limit for workers' ccmpeiurtion. The City maintains no general liability policy. Self--Insurance: activity is recorded in an Internal Service Mid. It is � the City's policy to clarge expense claim that are reasonably determinable and where the evidence of the City's liability is probable in accordance with GASB Code Section C.50.110. Expense is rEvz . "zed for claims that have occurred but have no': yet been rer-orted to the City. Charges are made by the self-Insurance nznd to other funds based on estimated costs. The liability for self-insurance claims includes an estimate for armounts incurred but not reported at year-end. Transfers from the General Fund are periodically made to cover deficits caused from inadecluat chards to other funds. See accountants' report �8 r i CITY OF HUNTING'10N H4'ACH NOTES TO FINANCIAL STATEMENTS (continued) ` JUNE 30, 1987 8. DflIVEM TRANSACTIOM: a. Receivables/ Payables: Individual interfund receivables and piyablas at June 30, 1987 were as follows: Due from/ Due to/ Advarr--es to Advances fncxn Ot vor Funds other Funds General Fund $12,750,547 Special Revenue Funds: Sewer 52,586 ► Planned Local Drainage 87,602 Grants 1,064 483 Park Acquisition and 3,939,630 $1,000,000 Development Enterprise Funds: Water Utility 171,770 drierald Cave Housing 943,841 General Long-Term Debt Acxxmt Group 16,122'777 71ota18 10,066,610 ,$18,066,618 Y; The amount payable from the Park Acquisition and Development Fund to the General Fund i.z intended to be repaid within one year and is classified on the balance shee:4.s as current. The remaining arm mts are long-term in nature and are cl.assfied as long-term. ..j Wring the year the City reclassified amounts representing lard sale proceeds that had originally been recorded as contributed capital in the Emerald Cove Housing Fund. The amount is now intended to be repaid to the Park Acquisition and Development Fund .frrm the Emerald cave Fund since the + land was originally owned by the Park Acquisition and Development Fund. The Emerald Cove Housing Fund "contributed capital" has been reduced by $832,430. The amount is also s}rown as deferred revenue in the Park Acquisition and Development Fund (see note 5). See accountants' report 29 ... 1 A i CITY OF HUNTINGTON BEACH r. NOTES TO FINANCIAL STATEMENTS � (continued) .TUNE 30, 1987 + �r ®. IWERFU D 'MiAtd'3F1L° C S (CUMOM): ! b. Operating Transfers: Below is a schedule reconciling total operating transfers in with total ► operating transfers out: Operating transfers in $3,447,565 Plus current year transfers to &Iuipmeut replacement 1,437,523 ,. Fund (a proprietary fund) which were recorded as c:ntributed capital ir.. the Equipment Replacement Fund { Plus transfers from Low Income Housing Fund to the Fherald Carve Housing Fund (a proprietary fund) which were recorded ar, contributed capital in the Ewrald 54,050 Cove Housing l:tud. ►- i Operating, transfers out $4,939,138 c. Residual Equity Transfers: Residual equity transfers consisted of items related to the defeasance of Public Facilities Corporation Leasehold 10brtgage Bonds- 1st Isom, and the issuance of. the Huntington Beach Civic Improvement Corporation Certificates of Participation described in note 14. r Certain cash which, prior to the defeasanc* had been held by a t:rustle, was transferred from the Public Facilities Corporation to the City and the Civic IL provemait Corporation. Also, becatme of requirements of the Certificate Indentttre, certain certificate proceeds were transferred fran `- Uke- Parking Structure Capital Projects Fund to the Civic Tzprovawnt Corporation Debt Service Fund. Below is a awrary of these residwal equity transfers: r • 1 I See accountants' report 30 .. � ►r CITY OF HUNTINGTON HEACR NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 8. INTERFUND IRANHAC WHS (CMfMWW): c. Residual Equity Transfers: Civic Improvement Corporation General Debt Service TRANSFERRED M: ktnul _ Fund Total TWSFERRED FROM: Public Facilities Corporation Debt $3,019,017 $ 958,867 $3,977,884 Service Fund Public Facilities Corporation Capital 713,740 0 713,740 Projects Fund Parking Structure Capital - Projects Fund 0 1,045,509 $1.045,509 7btal $3,732,757 $2,004,376 _ $5,737,133 9. SEaqw. iCR ENrERPRISF F[ RS: i The City maintains three enterprise funds; Water Utility, Mearlow)ark WIf Course and Emrald Cove Housing. Certain key financial data was as follows: �1 See accountants' report 31 i j rr CITY OF HUNTINGTON BEACH MOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 9. Somewr MWICH FM EtIMMSE FriW (CURrIMM MEADOK ARK EMERALD WATER GOLF COVE � UTILITY COURSE M!-e iNG IMAL I .r, i Operating Revenues S 9,161,618 S 229,984 $ 618,012 $10,009,614 '~ Depreciation Expense $ 1,216,974 ;ice 2-1 537 g 79E 375 $ 1,323,886 Grating Incom (Lass) ($ 531,132) $ 202,447 $ 251,242 ($ 77,r,443) ,. Net incane (Loss) 1, 202,517) $ 116,377 ($ 77,775)($ 163,695) Contributed Capital Received, Net P1,203,011 0 ( $778,380) $ 42.41_�31 Net Acquisitions { (Dispositions) ,w of Fixed Assets $ 1,545,692 $ 0 0 S 1,545,692 Net Working Capital 1 3,942,286 1 504,953 960,877 5,408,116 ; Total Assets $34 732,007 $3,782,374 S64901.232 $45,415,613 Wng-'berm Obligations, Net of. Current Portion S 910,615 $I,728,865 ,54,510428 $ 7149,908 Total Equity 3$31 747,002 $1,984,273 _�I,359,296 $35,090,571 I See accountants' report 32 CITY or nuNTINGT0N BEACH NOTES TO FINANCIAL. STATEKENTS (continued) JUNE 30, 1987 10. C221MAi, MG-TEM LI M: Below is a mzmiary of changes in general long-term debt for the year ending June 30, 1987: Balance Balance Outstanding Outstanding July 1, Additions June 30, 1986 (Retirements) 1987 1970 Park Bonds $ 3,165,000 $ ( 280,000) $2,865,000 Public Facilities -, Corporation Leasehold 7,440,000 (7,440,000) 0 mortgage Bonds- 1st Ism3e Public Facilities Corporation Leasehold 3,410,000 (200,000) 3,210,000 mortgage Bonds- 2nd lowie Parking ALthority 1,060,000 (115,000) 945,000 Revenue Bonds Civic Improvement Corporation Certificates 0 20,000,000 20,000,000 ' of Participation Coastal Conservancy 425,000 0 425,00 -, Note Compensated Absences 3,277,869 297,681 3,575,550 Advances Fran 11,825,857 4,296,920 16,122,777 Other Funds Amcwts Dim Under Owner Participation Agreement 0 1,408,047 1,408,047 Total $30,603,726 $17,967,648 $46,571,374 See accountants' report 33 A CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 I 10. C224WAL LCW-TEM DWr (CONTEWW: 7 f a. 1970 Par:: Bonds: r' J � 11 On March 1, 1970 the City gold $6,000,000 of general obl,.�ation bonds to acquire and construct park facilities. Principal matures annually on March let with interest, at 6%, payable semi-annually. The annual debt service requirements to amortize the bonds outstanding at June 30, 1987 are as follows: .� Year ' End �. f Jtme 30, Principal Interest Total 1988 $295,000 $173,100 $468,100 1939 310,000 155,400 465,400 1990 305,000 136,800 441,800 1991 350,000 118,500 468,500 1992 370,000 97,500 467,500 1993 395,000 75,300 470,300 1994 415,000 51,600 466,600 1995 445,000 26,700 471,700 Total $2,885,000 $834,900 g3j719,900 r` b. Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds-First Issue: r- The Huntington Beach Public Facilities Corporation Leasehold Mortgage Honda -1st Issue were defeased on July 15th, 1986 as described in note 14. - Funds totalling $6,940,860 were placed in an eacrow accxxmt. The escrow account contained Federal securities with guaranteed returns which will fund the debt service to retirement. The total bonds outstanding at June _ 30, 1987 were $7,010,000. Principal matures annually on March 1 and bears interest ranging between 5.0% and 5.5% per annum, payable semi.-annually. See accountants' report 34 i CITY OF HUNiTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) i JUNE 30, 1987 I 10. GPIyHM II1NG-TEM DWr (CORrINUM: c. Huntington Beach Public Facilities corporation Leasehold Mortgage Bor&- Seoond Issue: -+ On September 1, 1972 $5,000,000 of Ieasehold mortgage bonds were issuM to construct the Central Library am Alex. The bonds are securest by a lease whereby the City annually transfers $399,000 to the Public Facilities Corporation. Principal matures annually on September 1st with interest ranging from 5.0% to 5.9% per annun payable scam-annually The annual debt service requirements to amortize the bonds outstanding at June 30, 1987 are as follasm: 1 i Year Wing June30, Princi l Interest 71otal 1988 $ 210,000 $ 170,812 $ 380,812 1989 230,000 158,712 388,712 1990 240,000 145,667 385,667 1991 260,000 131,667 391,667 1992 270,000 116,827 366,827 1993 290,000 101,002 391,002 1994 305,000 83,968 388,968 ^� 1995 320,000 66,000 386,000 1996 340,000 4i,025 387,025 1997 360,000 28,250 388,250 1998 385,000 91625 394,625 a 7bta1 $3,210,000 $1,059,555 $4,269,555 _J See accountants' report 35 CITY OF HUNTINGTON BEACH NOTES To FINANCIAL STATEMENTS (continued) JUNE 30, 1987 10. Gemam Law-TEW DEBT (CoN rINm): d. Parking Authority Revenue Bonds: A � I on September 1, 1968 $2,300,000 of revenue bonds were issued to construct � riff-street parking improvements. The bonds are secured by a lease which t + requires that the City budget annual transfers to the Parking Authority sufficient: to meet -the debt service requirements on the bonds. Principal matures annually on September 1 and bears interest at 5.25% per annum, payable semi-annually. The annual debt service requirements to am ortize the bonds outstanding at June 30, 1987 are as follows: , i Year June 30, Principal Interest Total 1988 $ 120,000 $ 46,463 $ 166,643 1989 125,000 40,031 165,031 1990 135,000 33,206 168,206 1991 140,000 25,988 165,988 1992 150,000 17,849 167,849 1993 160,000 10,238 170,238 1994 115,000 3,019 110,019 Total $ 945,000 $ 176,794 $1,121,794 - e. Huntington Beach Civic Improvement Corporation Certificates of Participation: On July 15, 1986 the Huntington Civic 7mproveme�(c Corporation issued $20,000,000 of certificates of participation in order to defease the Huntington Beach Public Facilities Corporation Leaaehold Mortgage Bonds- First Issue and construct certain parking facilities (note 14). The Civic Improvement Corporation o is the Civic Center cmplex and leases it to the See accountants' report 36 w CITY OF HUNTINGTON ©EACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 7 10. GENOM DEW (03NTHXM): i e. Huntington Beach Civic Improvement Corporation Certificates of Participation: City. 1 e City has agreed to make annual lease payments equal to debt ,service requirements on the certificates. The interest rates on the certificates varies between 4.75% ar:d 7.9%. Interest is payable semi- annually on February lot and August 1st with principal maturing annually I on August lot. Debt service requirements to maturity are as follows: -� Year Ending June 300, Principal Interest Total 1988 $ 170,000 $ 1,530,425 $ 1,700,425 1989 220,000 1,520,613 1,740,613 1990 230,000 1,508,225 1,738,225 1991 245,000 1,494,263 1,739,263 1992 260,000 1,478,788 1,738,788 1993 275,000 1,461,725 1,736,725 1994 295,000 1,442,831 1,737,831 1995 315,000 1,421,850 1,736,850 1996 335,000 1,398,765 1,733,765 1997 360,000 1,373,565 1,733,565 1990 385,000 1,346,180 1,731,180 1999 415,000 1,316,373 1,731,373 2000-2007 4,715,000 9,079,141 13,794,141 2008-2016 11,780,000 5,233,752 17,G13,752 Total $20e000,000 $ 31,606,496 $ 51,606,,496 _` f. California Coastal Conservancy Note Payable: In March, 1983, a storm damaged the municipal pier. The California -- Coastal Conservancy agreed to lend the City $425,000 to cover a portion of the repair costs. The first $150,000 of the note bears interest at 8.00% per arnum and the remaining $275,000 bears interest at 8.66% per annun. Payr,ents caamence July 1, 1987 and are due annually thereafter until July 1, 1997. Future required payments on the note are as follows: See accountants' report 37 ww- A A CITY OF HUNTINGTON BEACH � NOTES TO FINANCIAI. STATEKENTS (continued) JUNE 30, 1987 � Na 10. Gnamm LONG-'1P1W DEsr (ml+imcm): ' f. California Coastal Conservancy Note Payable: Fiscal Year Ending June 30, Amount 1988 $66,796 1989 66,796 � - 1990 66,796 1991 66,796 m 1992 66,796 1993 and after 338e971 $ 672,951 Less Interest (247,951) Principal at June 30, 1987 $ 425,000 g. Oampensated des Payable: -- There is no fixed payment schedule to pay the governmental fund liability r- of $3,575,550 for ccapensated absences earned through June 30, 1987 (see note le). h. Long-tern Advances from Other Funds: _ There is no fixed repayment schedule for the Redevelopment Agency to pay the long-term advances from the City which totalled $36,122,777 at June - 30, 1987. Belay is a description of the various transactions: i i i I See accountants' report. 38 j CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) ' JUNE 30, 1987 10. GERWAL IJONG-TO" DM T (OORrINURD): 1 h. Lnng-term Advances from Other Funds: Sale of land by the Park Acquisition and Development Fund for $1,917,570 plus interest at 10% per annum: $ 2,807,551 Sale of Land by the General Fund in 1983 for $405,535 plus interest at 10% per annum: 593,745 Cash advanced from the General Rand from 1979 to the present totalling $8,267,096 plus at 10% per annumu 9,448,419 Cash advances from the Grant Fund in 1983- no interest: 1,064,483 Developers fees payable to various funds totalling $690,329 which are subsidized by the Agency with interest: at 10% per annutn: 835,298 r Land sale from the General Rand in June, 1987 for $1,228,381 at 10% interest: 1,228,381 ..; Advances frrm the Water Fund of $138,000 in 1986/07 plus interest at 10% per annum: 144t900 Total amount due f rom other funds $16,122,777 Below is a reconciliation of the .�ch-nges in amounts advanced from other funds by the Redevelopment Agency recorded are general long-term debt for the year ended June 30, 19R7: Amount due to other funds on July 1, 1986 $11,825,857 Advances Received 4,380,032 Reclansifications of deferred revenue, see note 8 (832,430) Transactions recorded in other funds as deferred revenue 749,318 Amunt dibe to other funds June 30, 1987 $16,122,777 See accountants' report 39 � 1 i A CITY OF HUNTINMTON BEACH j NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 M 10. (22MR4L IrW-r4V iM DW (CCNTIIm): i. Amounts Dix Under Owner Participation Agreemment: In 1983, the Redevelopment Agency entered into an Owner Participation Agreement (OPA) with Mola Development Corporation. The agreeuent set forth term wherein Nola Development Corporation agreed to construct certain public improvements and right of way in the Oakview Redevelopnent project area known as the Charter Centre improvements. The City agreed to purchase these public improvements for $1,408,047 anr3 to defer receipt of building permits and development fees, totalling $211,394 which would would normally have been payable at time of initial occupancy. The l Redevelopment Agency agreed to advance these fees to the City. ' For the purchase of the public improvements and right-of-way, the C Redevelopment Agency agreed to pay to Mola on or before July lot of each year (beginning July 1, 1987) from tax increment revenje received by w, the Agency directly attribatable to the development by the Charter Centre I improvements, the lesser of: . the costs of the public improvements and right of way totalling r« $1,408,047 plus interest accruing at 11% per annum (totalling $1,648,893 at year end). . an amount equal to 65% of the tax increment revenues directly caused by the Charter Centre improvements and received by the Redevelopment Agency during the 10 calendar years commencing with the 1986 calendar year. ru i The Agency has the right to offset the deferred development fees described above against the amounts due to Mola Development Corporation for the public improvements and right of way. On July 1, 1987, subsequent to year end, the City paid to Mina Development Corporation, $125,000 which represented the first installment payment on the right-of-way and public improvements. There is no fixed repayment schedule for this debt except that it mast be fully raid by Deacamber 31, jI 1995. { tY! • ` I See accountants' report 40 r t.r � CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 11. P�3�RIET�Yaf FIND L0h1G-TERM Dl : The following is a mmm ary of changes in proprietary ford long-term debt for the year ending June 30, 1987.- Balance Balance i Outstanding Outstanding July 1, Additions June 30, 1986 (Retirements) 1987 i _, 1963 Water Revenue Bonds $ 1,053,000 ($ 184,000) $ 869,000 San Joaquin 321,355 (49,570) 271,785 Reservoir Note Meadowlark Golf Course Note 1,781,261 (25,312) 1,755,949 nnerald Cave Certificates of Participation, net 4,497,633 12,795 4,510,428 of disomit of $89,572 -1 Ca Vensated Absences 103,109 22,481 125,590 -� Total $ 7,756,358 ($22.3,606) $7,532,752 See accountants' report 41 AN CITY OF HUNTINGTON LEACH , NOTES TO FINANCIAL STATEMENTS (continued) JONE 30, 1987 i 1'�.. �RIETARSI F�+D ILM'�:YFd7 DF>BT ((II�1F'IIIUH]): � a. 1963 Water Revenue Bonds: � On November 1, 1963 the City sold $3,750,000 of revenue bonds to construct rater improvements. The bands are secured by revenues of the Water Bold. i Principal matures annually on November 1 and bears interest at 3.5% per anntxn► Payable semi-annually. Pat The annual debt service requirements to amortize the bonds outstanduv at June 30, 1987 are as follows: Year i Junes 30, Principal Interest Total � I 1908 $ 180,000 $ 26,326 $ 206,326 1989 180,000 19,915 199,915 1990 190,000 13,382 203,382 i 1991 200,000 6,498 206,498 1992 119,000 2,083 121,083 ►+. Total ,$ 869,000 $ 68,204 S 937,204 ► . I The bond indenture requires that the Water Fund net revenues equal or r- exceed 1.25 tinees the annual debt service requirement (principal and interest). Net revenues are defined as geoss revenues lens maintenance and operation revenues, excluding deprecistion. The City has emplied with this requireceat as shown below: . i Gross revenues $9,161,618 Operating expenses, excluding (� interest and depreciation Be475,776 �- Net revenues $ 685,842 J Debt service $ 218,455 Debt service coverage 3.1 1- f t 1 t +I I See accountants' report 42 � , -� CITY OF QUNTINGToN emcn NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 12. FROPRIMM FUM MC-TEM EMr (C!I NrDKM): b. San Jo aquin Reservoir Note Payable: In 1979 the City and several other local cities and water districts purlhased the San Joaquin Reservoir. The City is paying a portion (13.56%) of the debt service for the 1961 construction of the reservoir plus operating and improvement costs. In the event of default, the expenses and/or debt service payments shall be reallocated among the remaining nondefaulting owners in proportion to the percentage interest awned as though the party in default dial not exist. The City has recorded its portion of the reservoir as a fixed asset in the Water Fund. -, The future required payments on the note are as follow$: Year Ending Required June 30, Payment 1988 $ 60,228 1989 60,284 1990 60,464 1991 61,028 -. 1992 54,984 296,988 Leas amount representing interest (25,203) Principal outstanding at June 30, 1987 71 785 See accountants' report 43 CITY OP HUNTINGTON REACH NOTES TO FINANCIAL STATEMENTS (continued) 1r JUNE 30, 1987 A U. PRJPEiIEMW FUND WNG-TEM DEBT (CORrIN(M): c. Meadowlark Golf Course Note Payable: The City financed its purchase of the Meadowlark Golf Course through a long-term 7% note. The note payable is collateralized by future revenues and does not represent a general obligation of the City. The City has leased the golf course to an outside party for a minimum amxmt of A i $150,000 ajunsally through 2007 and a percentage of income based upon gross � y revenues for the years 2008-2009. As part of the City's initial payment of $928,000 the County of Orange contributed $600,000 upon the City's guarantee to use general City funds, when and if necessary, to ensure that meadowlark Golf Course will be maintained as open space. i The required payments on the note are as follows: F' Year Ending Required ►�° June 30, Payment 1988 $ 150,000 1989 150,000 1990 150,000 ' 1991 150,000 1992 and after 31015,703 3,615,703 Less amount representing (1,859t754) r interest Principal outstanding r_ at June 30, 1987 $1,755,949 1 J! ` � t + + I See accountants' report 44 CITY OF HUNTINGTON BEACH -t NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 i 11. P1i�ltJETARX F W WNG-TERM BEEP (00WINUED): d. Emerald Cave Housing Certificates of Participation: On June 1, 1987, the Redevelopment Agency sold certificates of participation to finance the construction of a senior citizens apartment ► complex. The certificates bear interest at 9.5% per anr:um, which is payable semi--annually. The land upon which the project is being built was sold to the Redevelopment Agency by the City. The City is leasing back j the project and operating it as an enterprise. Lease payments, equal to interest of $36,417, are payable monthly. The holders of the certificates -.� have a proportionate interest in the lease payments to be made by the City. The certificates are secured by the lard and the buildings ' eonutructed, an assignment of rents and an irrevocable letter of credit issued by a bank. A discount of $126,500 is being amortized to maturity. r' Below is a schedule of debt service requirements to maturity: Year Ending June 30, Principal Interest Total 1988 $ 0 $ 437,000 $ 437,000 1989 0 437,000 437,000 1990 0 437,000 437,000 1991 0 437,000 437,000 1992 0 437,000 437,000 ' 1993 0 437,000 437,000 J 1994 4,600,000 400,583 5,000,583 -, Totals 14,600,000 $3,022,503 $7,622,583 e. Compensated }'absences: ..a ' There is no fixed repayment schedule to repay the c ulpensated absences for i proprietary fund types of $125,590 at June 30, 1.987. See accountants' report 45 • r i i CITY OF HUNTINGTON BEACH NO2eS TO FINANCIAL STATEMENTS (continued) JUNK 30, 1987 i 1.2. CEANGES IN FDQ'D ASSM: Below is a schedule of the changes in general fixed assetu for the year: + ' Balance Balance �1 July 1, 1986 Additions DLspMitions June 30 1987 Land $ 30,864,013 $8,051,904 $ 1,012,694 $37,903,023 Buildings 25,158,461 0 0 25,158,461 � S Machinery and Equipment 9,333,328 0 9,333,328 0 Other 71582,167 0 5,849,897 1,732,270 r Total 72,937,969 8 051 904 $16,196,119 $64,793,754 Belay is a schedule of changes in proprietary fund fixed assets for the year: Balance Balance Enterprise Ends: July 1, 1986 Additions Dispositions June 30, 1967 Land $ 4,751,395 0 $ 19,958 $ 4,731,437 Buildings 5,200,795 0 0 $ 5,200,795 Machinery and equipment 45,016,018 1,579,119 13,470 �46,581,667_ Total Coet $54,968,208 7 ,579,119 $ 33,428 $56,513,899 Less acc►mrlated depreciation (18,957,032) (20,269,825) �a Net Hook Value, 536,011,_176 $36,244,074 Enterprise Funds �f Cr1 1 I See accountants' report. 46 i CITY OF OUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 12. CHANMS IN FIM ASWfS (03WINIUED): Internal Service Balance Balance Raids: July 1, 1986 Additions Dispositions June 30, 1967 Mchinery and $ 1,944,035 $17,840,300 $ 333,000 $19,451,335 Equipment - Less acctmdated ' depreciation (132,023) (8,839,654) Net Bask Value, $ 1,812,012 $10,611,681 Internal Service Fluids 13. RESERM AND ESItH'ION , OF PM BMTY: Under the provisions of GASB Code Sections 1800.121-123, the City has set up reserves and designations of fund equity. Reserves indicate amounts which cannot be appropriated in future periods or which are legally set �? asida for a specific future use. Designations represent amounts that the City has made tentative plans to uue in a future period. The City's reserves and designation are described below: See accountants' report 47 CITY GE HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 13. R&SERVEN AND 'LLSIGNATIGNS OF KW BQUITY (Ci1 nVM): Internal Special Debt Capital Service/ General Revenue Service Projects Enterprise Floyd Ew de Flvyds Rinds Funds RESERVES on Encumbrances $1,934,542 $3,461,506 $ - $ Long-term p� receivables 8,376,193 1,202,032 -• - - ( � Reimbursement - 585,334 -- -agreements " Continuing projects - - -• 15,105,351 - !� Debt service - - 6,925,942 - 16,676 Land held for � regale - - - 3,009,109 - Inventory 146,073 - - - DESIGNATIONS Subsequent year's I- expenditures - 1,656,417 - - 408,000 Other fund �.. deficits 1,563,034 - - - 4. IWAL $12,019,842 $6,905,289 $6,925,942 518,114,460 4$ 24,676 k� See accountants' report 46 CITY 0, ";TINGTON BEACH NOTES To FIft,. �L STATEKENTS (cony... ed) JUNE 30, 190 13. RAVES AND DE'bIGOMOM OF Pao E*UITY (CC1?►Z!"1 I f)1. ' a. Reserves for encumbrances represent amounts commit -nd for unperformed services or for undelivered goads where a commitment ti, rurchase has been made. ' b. Reserves for long-term receivables represent amounts inL,.IiX ed in advances to other funds and other receivables which are not E^heduled to be repaid until future years. c. Reserves for reimbursement agreements represent expected future.' -� reimbursements to developers for sewer and drainage construction. d. Reserves for continuing projectf, represent amounts committed for loing- terns projects not yet completed. e. Reserves for debt service represent amoemts acc►mulated in debt service funds or set aside in ar.o'4yer fund in accordance with a band indenttu-e or uimilar covenant. i f. Reserves for land held for resale represent land held by the Agency -, that is legally committed for resale. g. Reserves for inventory represent amounts for general supplies. inventory. -� h. Designations for subsequent years' expenditures are made to provide for � deficits buxlgeted in mibsequent years. i �l i. Designations for other fund deficits represent wounts to cover fund deficits in the Self-Insurance Fwd. 14. USMS<VKZ OF flMff7IWM BOKS PUBUC FACILIT=9 '!'ION LB D NOFUGAM Hi>NDG- lff ICE: on July 15. 1986, the newly-formed Huntington Beach Civic Improveinent Corporation issued $20,000,000 of certificates of participation to provide for the defeasance of the Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds- lot Issue and construct certain parking improvements. The certificates were issued on July 15th, but the procee & + weren't delivered until August 13th. See accountants' report 49 I r• . I A CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) ~ ++ JUNE 30, 1967 i ON 14. nVENVAX OF HURrIYUM EENZ PIIIL.IC FACi'I. .rrM WJrKW LEASERIED t MORIGIM BONN- in issue $6,940,860 of the proceeds of the certificates were placed in an escrow account consisting of U.S. government seLvrities which will fund Use debt service requirementi6 of the Public Facilities Corporation Leasehold ., Mortgage Bonda- lot Issuee to maturity. As a result these bands are considered to be defeaseed and have been removed from the General bxq-Term t Debt Account Group. Tne City and the Public Facilities Corporation discharged their lease and sublease dated September 15, 1972 and all lard � and improvements reverted to the City. The City then transferred all land and inap ...ts to, and entered into a thirty year lease agreement with, the Hu ntirx3to n Roach Civic Imprtio P-WIMt Corporation. The bonds were defeased because Citl runagenent determined that financing ` wrarld have to be obtained to contras } desired parking and other public impra in the downtown area. Significantly lower interest rates were obtained by forming the Civic Improvement Corporation to obtain the cash from the certificates to +defease the Public Facilities Corporation bonds since the Civic Improvement Corporation now owns the Civic Center txxmplex which represents the security fer the certificates. Financing e for parking inQrovan mts without similar security would bear prohibitively high interest rates. Thus, even though there is a not economic loss of $402,376 as shmm below, City management. feels that the resultant interest savings from isouirg long-term debt with the Civic Center a mplex as security will be significant. I Below is a echtidule of sources and uses of the certificate procaeds: Sourrss Principal amoetmt of new debt $20,000,000 eY Interest earnings (7/15/87 to 8/13/87) 119,347 j Underwriter discount (344,000) e' Imn a x:e discount (106,000) Tbtal Sources $19,669,347 f I e I e I See accountants' report 50 � i i I -' CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL !ITATEMENTS 7 (continuer'.) .TUNE 30, 1987 14. DEVERSANCE OF HU11iNMM BEACH RELIC FACILrIMM IUD MMMMZ BOWS- M I (DOMIN OW) i Uses Deposit to escrow fund 6,940,860 Issuance costs (non-recoverable), transferred to Civic Ipprovement 129,074 i Corporation, see note 8 Other transfers to Civic U provement 916,345 --� Corporation- we note 8 Proceeds to Parking Structure Capital 11,682,978 Projects EtNd Total Uses 1, 19,669,347 7 The net proceeds of the certificates are $12,609,140 which is recorded in the Parking Structure Capital Projects Fund as prxmeds of long-term debt. The amoant is computed as follows: Total proceeds $20,000,000 -' Less underwriter discount (344,000) Less issuance discount (106,000) Less deposit to escrow fund (6,940,860) Net Proceeds S12,609,140 The effective interest rate of the new certificates is 8.07029%. The effective interest rate target is $19,540,273 which is ccu,puted as --� follows: Total proceeds $20,000,000 Plus interest earnings from 7/15/87 119,347 to 8/13/87 Less underwriter discount (344,000) Less issuance discount (106,000) Less issuance costs (129,074) Effective interest rate target $19,540,273 See accountants' report 51 CITY OF HUNTINGTON BENCH �} NOTES TO FINANCIAL STATENENTS (continued) JUNE 30, 1987 14. MrONOW OP HUWrIINM= MPM PM C Below in a calculation of the net economic loses (total cash flows � + discounted at effective intererjl: rate) and difference in total rash flow requirements from the defeasance as of July 15, 1986: t Net Economic Loss i Present value of defeased Public Facilities Corporation bonds $ 6,657,810 Present value civic Inprovement corporation certificates adjusted for net proceeds received (7 060,186) Economic loss $ (4021376) r Cash glow Differenoom ' rM Total debt service requirements of defeased t.. Public Facilities Corporation roods $10,301,130 7btal debt service requirments of Civic TiVroven ent Corporation certificates of $52,441,921, redLumd by net proceeds of received of $12,609,140 ($39,832,781) r. Difference of cash f=owe ($29,531,751) r� r • � I See accountants' report 52 � � i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) i JUNE 30, 1987 15. ACLUMM CHNGS: Beginning July 1, 1984, the equipment Replacement Fund became responsible for replacing all non-enterprise equipment. However, new equipment which -, did not replace existing equipment was purchased from the general or other govermmental funds and carried in the General Fixed Assets A000:nt Group. Effective July 1, 1986, all non-enterprise equipment which does not replace existing equipment is recorded as a transfer from the respective fund and as contributed capital in the Dq:iipment Replacement Fund. -_i On July 1, 1906 the net book value of all machinery and equipment carried 7 in the General Fixed Assets Account Group van transferred to the equipment Replammc:tt Fund. The machinery and equipment in the General Fixed Assets Account Group had been recorded at cost without considering depreciation. -, The transfer into the Equipment Replacemment Fund was at depreciated book value and is shown as contributed capital. Below is an analysis of the transfer: Transfers out of General Fixed Assets Account Group, (Cast of Machinery and Squipment in General Fixed Assets Acoount Group at July 1, 1986) $15,183,225 1 Aecua:lated depreciation on machinery and equipment transferred to equipment Replacement Fund (7,327,403) Contrihted capital (net book value of equipment transferred) recorded in equipment Replacement Fund due to transfer in of machinery and equipment S 7,855,655 i 16. LAND DOFO EM: During the year, Pacific Railroad company donated land valued at $371,619 to the Redevelopment Agency Capital Projects Fund which will be used in i future Agency activity. The land is recorded in the Redevelopment Agency apitir.l Projects fund as "Land Held for Resale" on the balance sheet with _ art appropriate reservation of fund equity. The contribution is recorded as an "otther financing source." i See accountants' report 53 A f ; 81 CITY OF HUINTI!'GTON BEACH HATES TO FINANCIAL STATEMENTS A (continued) JU]NE 30, 1987 M 17. AND a. Legal Actions: } i There are certain legal actions pending against the City that have arisen in the course of normal operations. In the opinion of management and the City Attorney, the ultimate resolution of these actions is not expected to 'y have a significant impact on these financial statements. � 1 b. Mortgage Povenue Bonds: The City astabliWYA a program in February. 1983 to provide funds for the fl purchase of home mortgages within the City. Under this program, a total of $40,000,000 of mortgage revena bonda has been issued, $20,000,000 in March, i983 and an additional $20,000,000 in July, 1904. The bonds are payable fram, and are secured by, a pledge of payments made on the home ` mortgages and all funds held by the trustee under the indenture agreements. The bonds are not an ' of the City and there I exists no legal obligation on the part of the City to make payments can the r' bmAs from any source other than the revenue and assets that were pledged. Accordingly, this program has been excluded from the acomqayi.ng combined financial statements. w � c. Lxnd Purchases- A.C. Marion: The City has entered into an agreement during the year to purcM&-- a ! parcel of land from a private party for $3,190,000. The agreement { required the City to pay $1,000,000 for the purchase of phase I of the parcel. For the next four years the City may purchase one of the remaining phases each year. For the use of the remaining parcels the City - pays a rental/option fee which is paid quarterly on February 28th, May i 31st, August 31st and November 30th. The City may cancel the agreement at I any time in which case the obligation to pay the remaining rental/option fees or to purchase any remaining phases ceases. Listed below is the schedule of payments and rental/option fees for the life of the contract: — 1 i See accountants' report 54 i '1 i CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS (continued) JUNE 30, 1987 7 1 17. AND C=111301M= (CUPrIHOBD) 1 Fiscal Year Ending Purchase Quarterly June 30, Price Prase Rents 1988 $500,000 2 $138,658 1989 500,000 3 108,002 1990 500,000 4 70,502 -j 1991 690,000 5 25,870 71bta1 $2,190,000 1111J38 J 18. FR= FMOD a. Taxes Receivable: .J On June 30, 1986, the City did not accrue males tax receivable totalling $1,098,900. The beginning General Fund Balance has been restated to i reflect this correction: Total fund equity as originally reported $12,430,480 -' Adjustment S 1,096,900 Total fund equity restated $13,529,380 I J --It J See accountants' report 55 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATMENTS (continued) JUNE 30, 1987 /1 18. MUM PM OD (t't' aIl r Elf b. ma-development Agency Land field for Resale: � � 1 On June 30, 1986 the City did not record land held for rule by the �+ Red1evelopoent, Agency. The am unt that should have been recorded was ( ► $1,277,109. The Redevelopment Agency Capital Projects Etuxd fund equity at June 30, 1906 has been restated to reflect this changes r 4f 'total fund equity as originally reported $1,532,097 Adjustment 1,277,109 Retained earnings restated �2,809,206 rr i 19. vmt FNQUNM ' a. Fund Deficit- Self Insurance Eland: The Self-Insurwice Fund (an internal service fund) has a deficit retained earnings of $1,563,034. This deficit will be funded in future years rM ' through increased charges to other funds. b. Fund deficit- Water Fund: The Water Fund (an enterprise fund) has a deficit retained earnings of $297,889. A rate increase was enacted in July, 1987 which will help this deficit to be eliminated in future years. i e. Budgetary Infcrmation: General Fund a xpenditureg exceeded appropriations by $470,222, which represents a non-budgeted entry recognizing the decline in market value• of the City's investments at .nine 30, 1987 (see note 3). k•r See accountants' report 56 � t1 fq i CITY OF HUNTINGTON BEACH MTES TO FINANCIAL STATEWNTE ~' (continued) DONE 30, 1987 20. SUBWOMW Ems=-. On July 1, 1987, the City ismed $5,000,000 of Tax and Revenue Anticipation Notes bearing annual interest of 4.50%. The notes mature on June 30, 1988. 't I I II "1 { .J { _J i I � i ..J { w I If i See accountants' report 57 ' 1 .� FIMWIAL s=ATORM j l Q 1 IMIYIDUAL !tWM ADD ACQDQI? QD0M J I .J r J J � it 1 t I j GENERAL FOND The General Fund is used to account for all financial activity that is not required to be accounted for in another fund. "1 J J J , SCHEDULE B-1 CITY OF HUNTINGTON BEACH 7 GENERAL FUND COKPARATIVE BALANCE SHEET June 30, 1987 and 1986 ASSETS 1987 1986 -� Cash and investments $ 10,894,333 $ 9,401,307 Taxes receivable 1,890,934 486,185 Accounts receivable 201,503 344,429 Interest receivable 43,368 51,763 l Advances to other funds 12,750,547 6,788,235 Due from other agencies 462,462 150,213 Deposits and other assets 216,551 179,900 TOTAL ASSETS L 26,4�49,698 $ 17,40I,337 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable $ 1,341,838 $ 1,180,524 Accrued payroll 2,212,343 1,933*167 Deposits 776,586 558,628 Deferred revenue _3,374,403 `1�298,538 �1 _i TOTAL LIABILITIES 7,705,179 4,970,857 FUND BALANCE: Reserved for encumbrances 1,9349542 19237,826 aeserved for long-term receivables 9,376sl93 5,469,697 Designated for other fund deficits 1,563,034 2*080,140 JUnreserved/undesignsted 5,87_ 0_,759 3,622,817 TOTAL FUND BALANCE 18,744,528 12,430,430 1 TOTAL LIABILITIES AND FUND BALANCE $ 26.449,698 $ 17,401,337 -58-. AM SCHEDULE B-2 CITY OF HUNTINGTON BEACH ' GENERAL FUND on E ` STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL t� For the year ended June 30, 1987 With cou,varative totals for the year ended June 30, 1986 1987 Variance - Favorable 1986 1 + Budget Actual (Unfavorable) Aetuai REVENUES s Property taxes ¢ 20,391,000 $ 21,174,423 $ 783,423 $ 18,456,192 Other taxes 29,637,100 28.698,414 (938,686) 27*622,057 Licenses and permits 3,195,400 3,308,990 113,590 3,042,450 Fines, forfeitures, and penalties 2,195,000 2,095,714 (99,286) 1,9730670 From use of money and property 3,994,500 4,397,997 403,497 3,782,431 From other agencies 7,363,600 7,880,417 516,817 7,125,470 r Charges for current services 2,573,900 2,799,219 225,319 2,325,401 ` ! Other 5122 L402 456j006 .. (56,396) 735,484 TOTAL REVENUES 69,862,902 70.811.190 948,278 65:263,155 EXPENDITURES: Currents ' City council 85,669 82,121 3,548 9U,029 City Administrator 5686191 555,452 12,739 483,064 City Treasurer 289,868 281,848 80040 286,648 } City Attorney 567,783 563,804 3,979 644,685 City Clerk 133,484 152,622 + 19,138) 1639608 Administrative services 2,7340699 2,680,065 549634 2,600,737 r Comsunity development 10860,533 1,849,015 11,518 1,7739596 Fire 11,2679922 11*186,607 81,315 10,236,204 Police 20,892,160 20,511,085 381,075 18,729,315 Cowaanity Services 6,1390176 5,959,254 179,922 5,385,738 r� Public works 15,9670564 14,567,248 1,400,316 14,911,530 Non-departmental 76133,395 7,708,794 (575,399) 6,795,596 u� Capital outlay 1,915,543 1,027.809 887,734 2,,186,520 F-r TOTAL EXPENDITURES 69,556 007 67,125,724 2,430,283 64.492,270 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 306,895 3.6852456 3,378,561 770,885 OTHER FINANCING SOURCES (USES): Operating transfers in 1,300,000 1,284,790 (15,210 1,221,368 Proceeds of long-term debt - - - 216,100 Operating transfers out (3,017,633) (3,017,633) (1,423,950) Loss on Investments - _ (470,222) (470,222) TOTAL OTHER FINANCING 1 � SOURCES (USES) (1,717,633) (2,203,065) (485,432) 13,518 irr EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES (1,410,738) 1,482,391 2,893,129 784,403 ! FUND BALANCE - BEGINNING OF YEAR 12,430,480 12,430,480 - 11,646,077 Prior period adjustment - 1,098,900 (1,098,900) - ` Residual equity transfers in 3,732,757 3,732,757 J FUND BALANCE - END OF YEAR $ 14,753,499 $_ 18 73 44,528 $ 3,992.029 C 12.430,480 j -54- ►1 I 1 i SPECIAL REVENUE FUNDS Gag Tax- This fund accounts fo:: financial activity apportioned under the Street and Highway Code of California. Expenditures may be made for any street-related purpose allowable under the code. Sewer- This fund is used to account for fees received from developers to construct new sewer facilities. Planned Local Drainage- This fund is used to account for fees received from developers to improve and upgrade the City's drainage system. Federal Revenue Sharing- This fund accounts for receipt and disbur4ement of revenue sharing entitlements. Public Communications- This fund accounts for revenue received from cable television righter granted within the City limits. Thene monies must be spent on community-oriented television ' Grants- This fund accounts for grant monies received from federal , state and county agencies not accounted for in other funds. Expenditures for these funds are restricted to the granting agencies requirements. -` Park Acquisition and Development- This fund is used for fees received _j form developers to develop the City's park system. i .J r CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET June 30, 1987 r With comparative totals for June 30, 1986 r Planned Federal I ' Local Revenue ASSETS Can Tax Sewer Drainage Sharing I Cash and investments $ 3,789,669 $ 4,4919960 $ 3,322,561 $ 570,64 i Accounts receivable - - 3,537 - Interest receivable 1+4,649 17,365 12,843 2,206 Advances to other funds - 52,586 67,602 - Due from other agencies 292,373 - - - Deposits and other assets - - TOTAL ASSRTS 4,096,691 $ 4,561,911 $ 3,426,543 572 806 M 1 � LIABILITIES AND FUND BALANCES LIABILITIES, Accounts payable $ 942,059 $ 7,913 y 59,234 $ - Accrued payroll - - .. Deposits 14,100 - - Due to other funds - - - _ Deferred revenue - 529586 87,602 �- TOTAL LIABILITIES 956,159 60,499 146,836 FUND BALANCES; Reserved for encumbrances 2,556,473 108,251 212,157 - Reserved for long-term receivables - - - - Reserved for reimbursement agreements - 26,181 559,153 - Unreserved: ' Designated for subsequent years expenditures 584,059 - 200,000 515,000 Undesignated - 49366s980 2,30SL397 57AS06 '- TOTAL FUND BALANCES _ 3,140,532 4*5010412 312790707 572,806 TOTAL LIABILITIES AND yI FUND BALANCES $ 4LO96,691 4,561,911 $ 3,426,543 572.006 " i t — -60- w i SCHEDULE C-1 7 p -, Park Acquisition Public and Totals Communications Grants Development 1987 1986 $ 72,470 $ 345,115 $ 1.,999,700 $ 14,592,075 $ 13,518,325 - 638 - 4,175 - 280 - 7,732 55,075 63,038 - 1,064,483 3,939,630 5#144.301 5,124,605 168,531 137,549 598,453 626,961 701 - 701 - 73 451 $ 1.5783767 $ 6,084,611 $ 20,394.7E0 19,332,929 .1 j $ 988 $ 50,403 $ 36,910 $ 1,097,507 $ 447,260 A 6,070 10,471 1,399 17,940 17,663 - 4,159 - lh,259 66,408 - 1,000,000 1,000,000 - 2a768 3,939,630 4,082,586 4,060&122 7,058 67,801 4,977,939 6,216,292 4,591,453 16,947 446,483 121,195 3,461,506 969,899 - 1,064,483 137,549 1,202,032 1,202,032 - - - 585,334 756,762 -' - - 357,358 1,656,417 2,877,449 49,446 - 49015:0 7,273,199 8,935,334 66,393 1,510,966 1,106,672 14,178,488 14,741,476 7$ 3,451 $ 1,578,767 S 6,084,611 $ 20,394,780 $ 19,3321929 -61- A CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS COMBINING STATEHEVT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES r For the year ended June 30, 1987 With comparative totals for the year ended June 30, 1986 ` Planned Federal Local Revenue Gas Tax _ Sewer DraiusKe Sharing REVENUES: - - - Other taxes $ $ $ - $ j Licenses and permits - 166,760 227,032 - From use of stoney and property 331,602 310,550 497,091 20,801 From other agencies 4,312.2439 2451030 I ti TOTA1. REVENUES 4,6441061 477,310 724_,123 265,831 EXPENDITURESs Current: City Administrator - - - i Community development - - - - Fire Police - - - Community services Public works - - - - Capital outlay 4,720,203 84,400 223.174 - TOTAL EXPENDITURES 4,720,203 84,400 223,174 - r EXCESS OF FBVENUES OVER (UNDER) EXPENDITURES (76,142) 392,910 500,949 265,831 OTHER FINANCING SOURCES (USES): Operating transfers in - - - - Operating transfers out _(1,284a790) (41.780)_ _ (242,244) (284.500) TOTAL OTHER FINANCING I' SOURCES (USES) (1,284,790) (41,780) (242,244) (284,500) EXCESS OF REVENUES AND AND ii;HER SOURCES OVER ! ! (UNI : 'j EXPENDITURES AND OTHER USES (1,360,932) 351,130 258,705 (18,669) FUND BALANCE: - BEGINNING OF YEAR 4,501,464 44150.282 _ 3,021,002 591.475 FUND BALAT',&',.3 - END OF YEAR $ 3,140,532 $ 41501,412 4�3,279,707 $ 572,806 1 -62- Y i SCHEDULE C-2 i f Park Acquisition y Public and Totals i Communications Grants Development 198) 1986 j $ 186,548 $ - $ - $ 186,548 $ 175,434 - - 1,215,767 1,609,5�9 1,209,130 5,916 317,262 103,028 1,rdO,250 1,246,023 11309,207 675,547 b,542,243 7,017,591 192,464 1,626,469 1,994,342 9.924.600 9,648,178 J 15k,500 - _ 154,500 1410826 487,203 487,203 342,545 - - - 15,506 i 8,346 - 89346 150303 I { - 29,206 101,464 130,670 82,761 1 - - - - 133,989 61,904 943,013 1,887,073 7,864,767 _9.085,352 _1 161,404 1,467,768 1.988,537 8,645,466 9,817,282 � 31,060 158,701 51805 1,279,114 169 104) 7 - 22,728 - 22,728 2,000,000 _i (11.516) - - (1,864,830) (1,996,368) (11,5161) 22,728 (1,842,102) 3,632 19,544 181,429 5,805 (562,988) (165,472) 46,849 1 ,329,537 _1,100,867 14,741.476 14,906,948 66,393 4 1,510,966 $ 1,106,672 14,178.488 14 741 476 -63- CITY OF HUNTINGTON BEACH SCHEDULE C-3 SPECIAL REVENUE FUNDS M COMBINING STATEMENT OF REVENUES, EXPENDITURES AND ( CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June 30, 1987 AS TAX Variance - Favorable Budget Actual r (Unfavorable) 9x'.'?NUES: From ose of money and property $ 300,000 $ 331,602 $ 31,602 From other agencies 91358,350 4,312,459 45.045L 891) TOTAL REVENUES 91658,.150 4A644.061 (5,014,299) BY.P6NDITURES: Capital outlay 14,312,258 4,720,203 _ 9.,592,055 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (4,653,908) (76,142) 4,577,766 OTHER FINANCING USES: Operating transfers out (1,300,000) (lA284,790) 15,210 k + EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (5,953,908) (1,360,932) 4,592,976 FUND BALANCE - BEGINNING OF YEAR 4,501,464 _4,501,464 FUND BALANCE - END OF YEAR $0.452L44013,140,532 g 4,592,976 � SEWER REVENUES: Licensss and permits $ 105,000 $ 166,760 $ 61,760 � y From use of money and property 300.000 310,550 10,550 TOTAL REVENUES 405,000 477.310 72j310 EXPENDITURESs Capital outlay 697,734 84,400 613,334 w �r) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (292,734) 392,910 685,644 OTHER kA.::/.!+KING USES s Operating transfers out (41,780) (41,780) � h'7 EXCESS OF REVENUES EVER (UNDER) EXPENDITURES AND OTHER USES (334,514) 351,130 635,644 t ' FUND BALANCE — BEGINNING OF YEAR 4.150,282 4.150,282 — tr FUND BALANCE - END OF YEAR $ 31815,768 $ 4.501,412 $ 685,644 � (CONTINUED) -64- 4, • �I I 4 1 SCHEDULE C-3 CITY OF HUNTINGTON BEACH j COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FL1VD BALANCES - BUDGET AND ACTUAL (Continued) For the yaar ended June 30, 1987 PLANNED LOCAL DRAINAGE Variance - Favorable Budget Actual (Unfavorable) REVENUESs Licenses and permits $ 200,000 $ 227,032 $ 279032 From use of money and property 250,000 497,091 247,091 Frcm other agencies 100,000 - (100,000) TOTAL REVENUES 550,000 724s123 174,123 ,3XPENDITURs:S s Capital outlay 1,424,186 223,174 1,201,012 EXCESS OF REVENUE OVER (UNDER) -� EXPENDITURES (874,186) 500,949 1,375,135 j OTHER FINANCING SOURCES (USES): JJ Operating transfers out (242,244) (242,244) - EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,116,430) 258,705 1,375,135 1'UND BALANCE - BEGINNING OF YEAR 3,021,002_ 3,021,002 i - ..J FUND BALANCE - END OF YEAR $ 1,904,572 $ 31279,707 1,375,135 FEDERAL REVENUE SHP.RING I � LEVENUESs From use of Loney and property $ $ 209801 $ 20,501 From other agencies 300,000 245,030 (54,970) i -� TOTAL REVENUES 300,000 265,831 (34,169) 0;7HER FINANCING USES s Operating transfers out (284,500) (284,500) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 15,500 (18,669) (34,169) FUND BALANCE - BEGINNING OF YEAR 591,475 591,475 -� FUND BALANCE - END OF YEAR 606j 975 $ 572,806 ^� (34,169) -� (CONTINUED) -65- � CITY OF HUN'_'INGTON BEACH SCHEDULE C-3 SPECIAL REVENUE FUNDS CMBINING STATEMENT OF REVENUES. EXPENDITURES AND ' CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) For the year ended June '10, 1987 PUBLIC GOHMUNICATIOHS Variance - Favorable Budget Actual (Unfavorable) REVENUES: Other taxes $ 213,000 $ 186,1548 $ (26,452) Use of money and property 8,_000 5,916 (2,084) TOTAL REVENUES 221,000 192,464 (28,536) EXPENDITURES: City Administrator 184,637 154,500 30,137 �1 Capital outlay 24,027 6,904 17 123 Ei TOTAL EXPENDITURES 208,664 161,404 47,260 EXCESS OF REVENUE OVEP. EXPENDITURES 12,?36 31,060 18,725 1 ! OTHER FINANCING USES: Operating transfers out (11,516) (11,516) - EXCESS OF REVENUES OVER EXPENDITURES AND OTHER USES 820 19,544 18,724 ` FUND BALANCE - BEGINNING OF YEAR 46,849 46,849 - FUND BALANCE - END OF YEAR 47,669 $ 66,393 9_ 18,724 I � OTHER GRANTS REVENUES: r From use of money and property $ 47,000 $ 317,262 $ 270,262 ( From other agencies _ 1,107,000 1,309,207 202,207 TOTAL REVENUES I,154,000 1,626,469 472,469 rM EXPENDITURES: LI Current: Community development 140,923 487,203 (346,280) ;« i Police 17,042 8,346 6,696 Community services 30,622 29,206 1,416 Capital outlay 44650,134 943,013 3,707,.121 TOTAL EXPENDITURES 4,838,721 1,467,768 3,370 r953 40 f EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (3,684,721) 158,701 3,843,422 OTIIER FINANCING SOURCES: Operating transfers in 22,728 22,728 - EXCESS OF REVENUES AND OTHER SOURCES OVER j (UNDER) EXPENDITURES (3,661,993) 181,429 3,843,422 + FUND BALANCE - BEGINNING OF YEAR 1,329,357 16329537 - FUND BALANCE - END OF YEAR $(2,332,636)$ 1,510,966 L 3,843,422 �,► (CONTINUED) _66- a i SCHEDULE C-3 CITY OF PUNTINGTON BEACH 7 SPECIAL REVENUE. FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND �+ CHANGES IN FUND BALANCES - BUDCET AND ACTUAL (Continued) For the year ended June 30, 1987 I 1 ! PARK ACQUISITION AND DEVELOPMENT —� Variance - Favorable Budget Actual (Unfavorable) REVENUES: Licenses and permis:s $ 1,100,000 $ 1,215,767 $ 115,767 From use of money and property 200,000 103,028 (96,972) From other agencies 974,000 67A,z547 (298,453) TOTAL REVENUES 2s274,000 1.994,342 (279,658) EXPENDITURES: i Cosnrinity Services 131,143 101,464 29,679 Capital outlay 2,557,409 1,887,073 670,316 TOTAL EXPENDITURES 2,683,552 11 988,537 7CO.015 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (414,552) 5,805 420,357 FUND BALANCE - BEGINNING OF YEAR 1,100.867 1,100,867 FUND BALANCE - END OF YEAR $ 6868315 4Z 1,106,672 420,357 1 .J � I .J (CONTINUED) -67- SCHEDULE C-3 A CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS A i COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL M (Continued) For the year ender! June 30, 1967 TOTALS Variance - Favorable Budget Actual (Unfavorable) REVENUFSs Other taxes $ 213,000 $ 186,548 $ (26,452') Licenses and permits 1,405,000 1,609,559 204,559 From use of money and property 1,1050000 1,586,250 4810250 From other agencies 11,7399350 6,542,243 (5,1979107) Other 100_1000 - (100,000) r TOTAL REVENUES 14,562,350 _ 96 924,600 (4,637,750) EXPENDITURES: r 1 : Currents City administrator 184,637 154,500 300137 W Community development 140,923 487,203 (3469280) Police 179042 8,346 8,696 Community services 1619765 130,670 319095 Capital outlay 23 A665,748 7,864,767 15,800,981 TOTAL EXPENDITURES 24,170,115 , 8.6452486 15,524,629 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (9,607s765) 1,279,114 10,886,879 OTHER FINANCING SOURCES (USES): Operating transfers in 22,728 22,728 - Operating transferR out (1,880,040) (1,864,830) 15,210 4i TOTAL OTHER FINANCING w, SOURCES (USES) (6857,312) (1,842,102) 15,110 h• EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) " EXPENDITURES AND OTHER USES (11,465,077) (562,988) 10,9020089 FUND BALANCE - B3GINNING OF YEAR 14,741,476 14,741,476 ►• FUND BALANCE - END OF YEAR $ 3,276,399 $14,178,488 $10.902,089 i k-► w -68- 1 i i i IWT SMICIS runs 1970 Park Bonds - This fund records the accusn•lation and distribution of ponies to meet the debt service requirements of the City's 1970 Park Bonds, a general --� obligation bond. Jedevelopmnt A8 encX " This fund records the accumulation and disburse■-rnt of s.` monies to meet the debt service requirements of the Redevelopment Agency. Public jacilities Corporation - This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Huntington Beach Public Facilities Corporation. 'Parking Authority - This fund records the accumulation and disbursement of -� monies to meet the debt service requirements of the Parking Authority Revenue Bonds. Civic Im2rovemen,tCargorat� ion - This fund records the accumulation and disbursement of monies to meet the debt service requirements of the Civic Iaprovement Corporation Certificates of Participation. _i t IJ on , CITY OP HUNTINGTON BEACH ; � l DEBT SERVICE FUNDS M COMBINING BALANCE SHEET � June 30, 1987 an With comparative totals for June 30, 1986 1 1 i 1970 Park + Bonds ASSETS: Cash and investments $ 81,913 Cash with fiscal agent - + Taxes receivable 17,833 r Interest receivable 317 TOTAL ASSETS 100 063 pw LIABILITIES AND FUND EQUITY r* LIAEILITIESs (•, Accounts payable FUND BALANCES: r• Reserved for Debt Service 100,063 �..I TOTAL LIABILITIES AND FUND BALANCE: 100 063 "~ , wl f� w r l Ia+ l ' i !w � fM i i / 1 r✓ 1 -69- 4. . e -` SCBSDULIs D-1 ir I 7 II Public Civic Redevelopwnt Facilities Parking Improvement Totals -� ARency Corporation Authority Corporation 1987 1986 r $ 1,691,166 $ - $ - $ - $ 1,773,079 $ 543,322 1,845,760 1,2976590 1,902,182 5,045,532 60233,240 j 14,125 - - - 31,958 13,751 6,537 35,489 39,762 - 152,105 74 655 f 1,711,828 $ 1,881,249 $_ _1,337,352 $ 1,902,182 6.932,674 $ 6,864,978 i i -� 6,732 $ $ $ - 6_ 6,732 J 1,705,,096 1,881,249 1.„3371352 1,902,182 6,925,942 6,864,968 -� I 1 7, 11,828 $ 1,881,249 1 1,337,352 $ 12902,182 # 6,932,674 $ 6,864,968 J •'1 1 I J J J I -70- A CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES ( , AND CHANCES IN FUND BA.T.ANCES ' t ! For the year ended June 30, 1907 With camp arative totals for June 30, 1986 ( 1 F .i 1970 Park r Bonds 11 R,;VEUUES s Property taxes $ 5036922 From use of money and property 71224 TOTAL REVENUES 511,146 EXPENDITURES: r Currents Principal 280,000 �y Interest 190,702 t TOTAL EXPENDITURES 470,702 I EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 40,,444 OTHER FINANCING SOURCES (USES)s P+ Operating transfers in - Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) - I� EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 40,444 � FUND BALANCES - BEGINNING OF YEAR 59,619 Residual equity transfer In - �� { Residual equity transfer out - ly FUND BALANCES - END OF YEAR 100 L.063 1 i i -71- j SClIII5DUL6 D-2 1 I Public Civic IRedevelopsent Facilities Parking Improvement Totals - Corporation Corporation A�uthority Corporation 1987 1986 $ 1,127,001 $ - $ - $ - $ 1,630,923 $ 870,134 80,372 131,086 901256 148,8835 _ 457,773 527.606 11207,373 131,086 90,256 148,835 2,0881696 1,397,740 i -� - 200,000 115,000 - 595,000 960,000 386,177 52,631 964,301 1,594,011 886,950 - 586,177 167,631 964,501 2,1g9.011 1,846,950 1,207,373 (4-55,091) (77,375) (815,666) (100,15) (449.210) i 1,253,900 170,050 7130472 2,137,422 1,4230950 (2,625) - (2,625) -,,(2,6,25.) - 1,253,900 167,425 713,472 2,134,797 1.421,325 1,207,373 798,809 90,050 (102,194) 20034,482 972,115 J 497,723 5,060,324 1,247,302 - 6,864,968 5*892,855 j - - - 2,004,376 2,004,376 - (3,977,884) - 3,977,884) $ 11705,096 1,8814249 t 1,337,352 $ 1,902,182 ' 4925,942 $ 6,864,,968 J 'l J 1 -%2- I 7n. • SORDULE D-3 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS i COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL. � For the year ended June 30, 1987 A t ; 1970 PARK BONDS Variance: - Favorable r _,.,Budget Actual (Unfavorable) e REVENUES s Property taxes $ 462,000 $ 503,922 $ 419922 from use of money and property 5,000 7,224 2,224 TOTAL. REVENUES 467,000 511,14E 44,146 EXPENDITURES s i l Principal 280,000 280,000 - Interest 195,000 190,702 4,298 r TOTAL EXPENDITURES 475,000 470,702 4,298 EXCESS OF REVENUE OVER. (UNDER) I� EXPENDITURES (8,000) - 40,444 48,444 FUND BALANCE - BEGINNING OF YEAR 59,619 59,619 FUND BALANCE - EYD OF YEAR $ 51a619 �„ 100,063 48,444 F-e REDEVELOPMENT AGENCY k., REVENUESs Property taxes $ 887,400 $ 1,127,001 $ 239,601 From ure of money and property 37,100 80,372 43,272 TOTAL, KEVENUES 924,500 r, 1,207,373 282,873 i FUND BALANCE - BEGINNING OF YEAR 4979723 497,723 - f ' FUND BALANCE - END OLD YEAR $ 1,422,223 §„11705i1 096 L28:,873 le, (CONTINUED) 1 ' -73- ,h SGIIEDULE D-3 CITY OF' HUNTINGTON MCN DEBT SERVICE FUNDS COMBINING STt.TFMNT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALAYCES - BUDGET AND ACTUAL -7 (Continued) For the year ended June 30, 1987 PUBLIC FACILITIES COP.PORATiON Variance - -, Favorable j Budget ^ _ Actual (Unfavorable) REVENUES: From use of money and property 8331,300 $ 1312086 $(200,214) EXPENDITURES: Principal 200,000 200,000 - Interest 5833312 3862177 197,135 TOTAL EXPENDITURES 783,312 586,177 197L135 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (452,012) _ (455,091) (33079) i OTHER FINANCING SOURCESs Operating transfers in 1,253,900 1,253,900 � - EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES 801,888 798,909 (3,079) FUND BALANCE - BEGINNING OF YEAR 5,060,324 5,060,324 - Residual equity transfers out (3,977,884) (3,977,884) FUND BALANCE - END OF YEf $ 1�884� ,328 4 1,881.249 (3,079) PARKING AUTHORITY. REVENUES: From use of whey and property 8 120,000 S 90,256 (� Z9,744) EXPENDITURES: -, Principal 115,000 115,000 - Interest 52,631 54,631 � TOTAL EXPENDITURES 167,631 1679631 EXCESS OP REVENUE OVER (UNDER) EXPENDITURES (47,631) (77,375) (29,744) OTHER FINANCING SOURCES (USES)s Operating transfers in 170,050 170,030 - Operating transfers out (2,625) (2,625) TOTAL OTHER FINANCING SOURCES (USES) 167,425 167,425 . EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 119,794 90,050 (29,744) 'FUND BALANCE - BEGINNING OF YEAR 1,247s302 1,2472302 FUND BALANCE - END OF "EAR $- 1t367,096 $ 1,337,352 (29,744) (CONTINUED) -74- w` y nri f'}' i� �: '�$IlRfa'. •7t1 A:t�' '!/:r..d••='�q.Sv, 5, ! l r...MP. ^` dc7d991�'r.ecan M'' �a SCHEDULE D•3 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS (�') COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 114 FUND BALANCES - BUDGL•'T AND ACTUAL (Continued) P� For the year ended June 30, 1987 i CIVIC IMPROVEMENT CORPORATION Variance - Favorable Budget Actual (Unfavorable) �{ REVENUES: fi From use of money and property $ 160,900 $ 148,835 (11,165) EXPENDITURES: Principal - - - Interest 965,,000 964,501 499 TOTAL EXPENDITURES 965,000 964,501 499 EXCESS OF :REVENUE OVER (UNDER) j EXPENDITURES (805,000) (815,666) (10,666) OTHER FINANCING SOURCESs P� Operating transfers in 713,472 713,472 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES (91,528) (102,194) (10,666) FUND BALANCE - BEGINNING OF YEAR - - - Residual equity transfers out 2,004,376 2,004,376 ca FUND BALANCE - END OF YEAR 1.912,b48 $ 1,902,182 (10.666) TOTALS REVENUESs Property taxes $ 1,349,400 $ 1,630,923 $ 281,523 Prim use of money and property 653,400 4571773 (195,627) ( . TOTAL REVENUES 2,002,800 2,088,696 85j,896 EXPENDITURESs Principal 595,000 595,000 - Interest 1,795,943 1,594,011 201,932 TOTAL EXPENDITURES 2,390,943 2,189,011 201,932 EXCESS OF REVENUE OVER (UNDER) ' EXPENDITURES (388,143) (100L 315) 287,828 OTHER FINANCING SOURCESs Operating transfers in 2,137,422 2,137,422 - i Operating transfers in (7,625) (2,625) TOTAL OTHER FINANCING SOURCES (USES) 2,134,797 261340797 - EXCESS OF REVENUE AND OTHER SOURCES OVER EXPENDITURES f : AND OTHER USES 1,746,654 2,034,482 287,828 FUND BALANCE - BEGINNING OF YEAR 6,864,968 6,864,968 - Residual equity transfers in 2,004,376 2,004,376 Residual equity transfers out (31977,884) (32977,884) - ti FUND BALANCE - END OF YEAR $-75- 6,638.114 6.925.942 287,828 1 � e,. I I ' CAPITAL PROJECTS FUNDS Parking Structure- This fund accounts for the construction of parking garages from proceeds of the Huntington Beach Civic Improvement Corporation Certificates of Participation. � Redevelopment Agency-- This fund accounts for acquisition and construction activity in the five project areas. Low-Income Housing- This fund accounts for acquisition and construction activity for low-income housing. The California Health and Safety Code requires that 20% of all tax increment revenue received by the - Redevelopment Agency be set aside in this fund for low-income housing development. Public Facilities Corporation- This fund accounts for major capital improvements made to the Library comp�.ex by the Huntington Beach Public Facilities Corporation. Parking Authority- This fund accounts for capital improvements made to certain off-street beach parking facilities. CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS f� COHBIHING BALANCE SHEET June 30, 1987 i With comparative totals for June 30, 1986 W 1 Parking Redevelopment Structure Agency Fe 1 ASSETS Cash and investments $ 12,124,115 $ 2,355,993 Cash with fiscal agent - Accounts receivable - 2,k.66 p, Interest receivable 46,865 29581 Land held for resale - 3.009,109 TOTAL ASSISTS $ 12,170.980 $ 5.369,951 en 1 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ - $ 61367 ,a Accrued payroll - 11,045 Deposits - 50,000 TOTAL LIABILITIES _ 67,412 jW FUND BALANCESs Reserved for land held for resale - 3,009,109 Reserved for continuing projects 12,170,980 2,293,430 TOTAL FUND BALANCES 12,1702980 5,302,,539 �.., TOTAL LIABILITIES AND FUND BALANCES $ 12.170,980 $ 5,369,951 �- r- w -76- i SCHEDULE E-1 Low Public Income Facilities Parking Totals Housing- Corporation Authority 1987 1986 j $ 365,249 $ - $ 189,452 $ 15,034,809 $ 2,002,544 - 83,457 - 84,457 782,238 1,263 - - 3,531 6,509 1,879 592 732 52,649 10,890 - 3,009,109 1,227 109 `i5, 367,391 $ 85,049 _ 190 184 4_ 1.8,183,555_ $ 4,029,290 7 $ 1,683 $ - $ - $ 8,050 $ 147,155 - - - 11,045 7,983 - - 50,000 25,000 7 19683 692095 180,138 - - - 390099109 1,227,109 365,708 85,049 190,184 1511059351 2,662,043 365,708 85,049 190,184 18,114,460 3_,849,152 367 391 85,049 190,184 $ 18,183,555 $ 4,029,290 �1 -a i -77- CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the year ended June 30, 1987 With comparative totals for June 30, 1986 I Parking Redevelopment Structure AstencX I� REVENUES: 1 Property taxes From use of money and property 898,E159 259,480 f TOTAL REVENUES 898,159 259,480 t EXPENDITURESs t Currents r" Community development - 2,378,795 E , Capital outlay _ 290 IO 1,547,050 TOTAL EXPENDITURES 290,810 3,925,845 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 607,349 Qs666,365) � OTHER FINANCING SOURCES (USES)s , Operating transfer:; in - - r- Advances from other funds - 4,380,032 Other - 371*619 Proceeds of long-term debt 12,609,140 1,408,047 Operating transfers out - 4 TOTAL OTHER FINANCING SOURCES (USES) 12,6094140 6,159,698 EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES 13,216,489 2,493,333 FUND BALANCES - BEGINNING OF YEAR - 1,532,097 Prior period adjustment - 1,277,109 Residual equity transfers out (1,045,509) FUND BALANCES - END OF YEAR 12,1 700,980 $ 5,302.539 I I -78- ` SCHEDULE E-2 Low Public Income Facilities Parking Totals _ Housing Corporation Authoritv 1987 f 1986 $ 281,?47 $ - $ - $ 281,747 $ 101,318 13,473 8,049 12,891 1,192 052 162,136 295,220 8,049 12,891 1,473,799 263,454 - - 2.378,795 19709,404 - 1,837,860 519,379 4,,216,655 2,228,783 295,220 8,049 12,891 (2,742L856) (1,965,329) - - 2,625 2,625 29625 - 4,380,032 4,913,841 371.0619 - - 14,017,187 • (54,050) (54,050) (1,225,000) (54,050) - 2,625 18,727,413 3,691,466 241,170 8,049 15,516 15,974,557 1,726,137 124,538 790,740 174,668 2,622,043 2,123,015 - - - 1,277,109 - (713,740) (1,759,249) _ 365 7r8 $ 85,049 $ 190,184 �18,114,460 3,849,152 -- -79- 1 ENTERPRISE FUNDS r Water Utility- Tt:is accounts for the City's water service to residents and businesses. '1 j Meadowlark Golf Course- This fund accounts for the operations of a City- owned golf course which is leased to a private corporation which pays the pity rent based on the operation's total revenues. Emerald Cove Housing- This fund is used to account for the operation of a senior citizen apartment complex. _j i CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS .� COMBINING BALANCE SHEET June 30, 1987 With comparative totals for June 30, 1906 Water UtilitX ASSETS CURRENT ASSETSs Cash and term investments $ 4,461,443 Accounts receivable 479,713 Accrued interest receivable 20,631 Due from other funds - Unbilled receivables 929,749 TOTAL CURRENT ASSETS 5,,891,536 OTHER ASSETSs Cash with fiscal agent 731,486 Advances to other funds 171,770 ' TOTAL OTHER Al;SETS 903,256 PLANT, PROPERTY AND EQUIPMENT (AT COST): Land 390,763 Buildings 971,219 �.. Machinery and equipment 46,2211871 47,583,853 Less accumulated depreciation (19,646,638) TOTAL PLANT, PROPERTY AND EQUIPMENT 27,937,215 ~ TOTAL ASSETS $ 34,732.007 LIABILITIES AND FUND EQUITY FM CURRENT LIAMITIS8% Accounts payable $ 851,501 Accrued payroll 629843 Accrued 'interest 6,412 �4 Due to other funds - Deposits 797,874 Current portion of long-teta liabilities 2306620 TOTAL CURRENT LIABILITIES is949„,250 LONG-TERM LIABILITIES: Bonds payable 869,000 Note payable 271,785 Compensated absences payable 125,590 Certificates of Participation - - Advances to other funds - Leos current portion (230,620) " TOTAL LONG-TERM LIABILITIES 1.1035,755 TOTAL LIABILITIES 2,985.,005 FUND EQUITYt -- Contributed capital 32,044,891 Retained earnings% Reserved for Debt Service - Unreserved (297,889) TOTAL FUND EQUITY 31.747,002 TOTAL LIABILITIES AND FUND EQUITY $34A732,007 -80•• SCHEDULE F-1 Meadowlark Emerald Golf Cove Totals Course Houein&_- 1987 1986 $ 571,860 $ 1,037,176 $ 6,070,499 5,699,078 100 1,260 481,073 480,518 2,209 10,108 32,948 33,278 - - - 24,428 - 929,749 803,106 5742189 1,048,544 745144."F9 7,0402,407 ~' 754,013 1,485,499 1,492,370 171,770 754,013 1,657,269 1,492,370 1 3,052,004 1,288,670 4,731,437 4,751,395 260,821 3,968,755 5,200,795 50200,795 -' 359A797 46,581,666 4,506,018 3,672,622 5,257,425 56,513,900 54,968,208 (464,437) (158,750) (20,269,825) (18,957,032) 3,20A,185 5,04�8 b75 361244,075 363011,176 ' $ 3,782,374 6,901,232 $ 45,415,613 $ 44,543,953 7 $ - $ 27,908 $ 879,409 $ 944,235 • 62,843 62,426 42,152 36,416 $4,980 84,544 J - - - 111,411 - 23,343 821,217 7550342 27,084 - 257,704 241,119 69,236 87,667 2,106,153 2,199,079 869,000 1,053,000 1,755,949 - 2,027,734 2,102,616 - - 125,590 103,109 -, - 4,510,428 4,510,428 4,4976633 943,841 943,841 - (27,084) (257,704) (241:_119) 11728,865 _ 51 454,269 8,218.889 7_.515,239 1,798,101 5,541,936 101325,042 9,714,318 1,267,324 1,342,620 34,654,835 34,230,204 - 16,676 16,676 94,231 716,949 - 419L060 505,200 1,984,273 1,359,296 35.090,571 34,829,635 $ 3,782,374 6,901,232 $ 45,415,613 2_ 44,543,953 i -81- t� CITY OF IIUIITIIIGTO14 BEACH ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the year ended June 30, 1987 With comparative totals for year ended June 30, 1986 M 1 Water Utility i OPERATING REVENUES: Water sales $ 8,977,514 Golf course rentals - Apartment rentals - Other revenues 184,104 spa TOTAL OPERATING REVENUES 9„161a618 > > OPERATING EXPENSES: �► Water purchases 2,585,733 j Administration 316,474 Engineering 571,250 Production 2,262,538 ; Maintenance 909,746 Water me,.-are 501,987 Contribution to General Fund in lieu of taxes 1,328,048 r ` Depreciation 14216,974 TOTAL OPERATING EXPENSES 9,6922 750 «- OPERATING INCOME (LOSS) (531,132) NON-OPERATING REVENUES (EXPENSES): i Interest income 374,343 Interest expense (45,728) i TOTAL NON-OPERATING REVENUES (EXPENSES) 328,615 i,.. NET INCOME (LOSS) (202,517) r— RETAINED EARNINGS - BEGINNING OF YEAR (950372) Prior Period Adjustment RETAINED EARNINGS - END OF YEAR $ (297,889) �- i -82- i s SCHEDULE F-2 Meadowlark Emerald Golf Cove Totals Course Housing 1987 1986 8,977,514 229,984 - 229 984 $ 7,21 , 3 - 568,324 ' 18,437 5b8,324, 562,640 49,688 �33792 - -- __- 273 507 229,984 61�O.O12 10.009,614 _ 8t966,900 " 2,585,733 2,881,891 2219404 537,878 363,533 571,250 159,919 I _ " 2,262,538 2,311,984 65,991 975,737 1,544,692 - 501,987 542,825 - 1,328,048 1,186,132 27,537 _ 79,375 �1,323,886 _ 1,285,578 27 537 _ 366,770 10,087,057 10�2.76,554 i 202,447 _ 251,242 (77,443) 0.309.654) 39,208 (125,_278) 449.795) (620998 ,801)549 681,201 629.251) -_ (86.070) 328 797) (86,252) 51,950 I -? 116,377 (77,775) (163,695) (1,257,704) 600,572 94,231 599,431 1,065,898 ----=-- 791,237 $ 716.949 16,676 $ 435,736 599,431 CITY OF HUNTINGTON BEACH ENTERPRISE FU11DS coH. BINING STATEMENT OF CHANGES IN FINANCIAL POSITION M For the year ended June .0, 1987 With comparative totals for year ended .Tune 30, 1986 Water utility i SOURCES OF WORKING CAPITALs Operations: (202,517) N- Net income (loss) 33,869 Loss on sale of plant, property and equipment 1 216 974 Depreciation 1,048,326 Working capital prov+ded by operations - r- Sale of plant, property and equipment 1,203,011 Contribution. received - Increase in certificates of participation 21,466 ^' j Reduction in restricted assets - Increase in advance to other fund , TOTAL SOURCES OF WORKING CAPITAL 2,272,803 USES OF WORKING CAPITAL: 1,545,692 �I Increase in plant, property and equipment - r" Increase in restricted assets 61,383 Decrease in long-term notes 187,000 Decrease in long-term bonds 229481 Decrease in compensated ab6encea payable 171,770 Increase in advances from other funds _ Contributions to park acquisition and development fund TOTAL USES OF WORKING CAPITAL 1,968,326 NET INCREASE (DECREASE) IN WORKING CAPITAL ?'�-477 .-- ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL: 199,250 Cash and term investments (929) Interest receivable 125,839 Accounts receivable (24,426) Due from other funds .,_ Prepaid expenses 66,501 Accounts payable Due to other funds (415) Accured p;+yroll 154 Interest payable - Deferred revenue (66,682) Deposits (14,813) ` Current portion of long-term debt �' NET INCREASE (DECREASE) IN WORKING CAPITAL 4y 284,477 .84- �r r SCHEDULE P-3 Meadowlark Emerald Golf Cove Totals Courses, Housing 1987 1986 $ 116,377 $ (77,555) $ (163,695) $(1,257,704) - - 33,869 - 27,S37_ _ 79,375 1,323,886 1,285,578 143,914 1,820 1,194,060 27,874 - .. - 2,770 - 54,050 1,257,061 1,294,978 12,795 12,795 - --� _ - 21,466 34,005 - 943,841 943,841 - --� 143,914 _1,012,506 3,429,223 1.359,627 .. - 1,5459692 1,636,756 14,595 14,595 66,892 27,084 - 88,467 70,269 - 187,000 69,807 - 22,481 26,596 .. - 171,770 - 832,430 832,430 - 27,084 847,025 2,862 435 r 1,870,320 $ 116,830 $ 165A481 $ 566,788 $ (510j693) $ 119,068 $ 53,103 $ 371,431 $ (5320304) 24 575 (330) (19,637) _. 100 1,260 127,199 (50,020) - - (24,428) 2,220 .. _ - (136,010) (1,675) 64,826 (2,676) - 111,411 111,411 - (590) (1,005) (22,229) 154 215,450 - - 22,208 - 807 (65,875) 25,768 (1,772) (16.,585) _ (13,463) $ 116,630 $ 165a481 $ 566,780 $ (510,693) -85- ' 1 --� INTERNAL SERVICE FUS S Self Inonrauce This fund accounts for the City' s self insurance activities f � -- (liability, health and workers' compensation). Sgui ent Replacement - This fund accounts for :he purchase and operation of certain vehicles and equipment leased to City departments. I ' I I . i SCHEDULE G-1 A CITY OF HUNTINGTON BEACH ! INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET A June 30, 1987 With comparative totals for June 30, 1986 r Self Equipment Totals ASSETS Insurance Replacement 1987 1986 CURRENT ASSET: Cash and term investments $ 5,599,929 $ 3,584,297 $ 9,1846226 $ 6,678,1.67 Accounts receivable 16,160 - 16,160 14,645 Accrued interest receivable 21,319 130693 356012 32,109 TOTAL CURRENT ASSETS 5,637,408 3059711990 9.2351398 6.724,921 PROPERTY AND EQUIPMENT (AT COST): Machinery and equipment - 19,451,335 19,451,335 1,944,035 Accumulated depreciation - (8,839,654) (8,839,654) (132,023) w TOTAL PROPERTY AND EQUIPMENT - 10.611.681 10,611.681 16812,012 TOTAL ASSETS 5,637,408 $14,209,671 y$19,8473079 R 8,536,933 r ?,IABILITI,%S AND FUND EQUITY CURRENT LIABILITIES: Accounto payable $ - $ 85,472 $ 85,472 $ 29,048 Accrued payroll 33,471 - 33 471 34,463 TOTAL CURRENT LIABILITIES 33,471 856472 118,943 63,511 r LIABILITY FOR SELF-INSURANCE CLAIMS: Workers compenoation 3,519,000 - 3,519,000 2,895,000 Health 290,000 - 290,000 290,000 r General liability 3,358,000 3,358,000 - 20440,000 TOTAL LIABILITY FOR SELF-INSURANCE CLAIMS _ 7,167,000 - 761674000 56625,000 TOTAL LIABILITIES 7,200,471 856472 7,285.943 5,6881511 FUND EQUITY: Contribute.: capital -• 11,793,345 11,793,345 2,500,000 Retained earningo appropriated - 408,000 408,000 - Unreserved (1,563,063) 1,922,854 359,791 3481422 TOTAL FUND EQUITY (DEFICIT) (1,563,063) 14,124,199 12 L561,136 21848,422 TOTAL LIABILITIES AND FUND _ EQUITY 5,637,408 $14,209,671 $19,847,079 $ 8,52-6,933 -86- SCHEDULE G-2 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINEr. EARNINGS June 30, 1987 With comparative totals for June 30, 1986 Self Equipment Tocals Insurance Replacement 1987 1986 OPERATING REVENUES: -• Charges for service Sy 6,859,456 $ 11566,286 $ 8,425,742 .� 7,202,059 OPERATING EXPENSES: -, Administration and general 993,272 302,865 1,301,137 1,723,510 Depreciation 1,612,867 1,612,867 108,065 Workers compensation claims 1,598,000 - 1,598,000 934,635 Employee medical claims 2,392,456 - 2,392,456 1,792,779 Liability claims 1,768,456 - 1,768,456 1138OA73_8_ TOTAL OPERATING EXPENSES 6,757,184 . 1,915,732 _81672,916 5,939,727 OPERATING INC ME (LOSS) 102,272 (349,446) (247,174) 1,262,332 _ II NON-OPERATING REVENUES: Interest income 414,805 251.738 666,543 723.083 NET INCOME (LOSS) 517,077 (97,708) 419,369 1,985,415 RETAINED EARNINGS (DEFICIT) - BEGINNING OF YEAR (2,080,140) 26428/562 348,422 (1,636,993) FETAINED EARNINGS (DEFICIT) - -; END OF YEAR 2(lr 563,063)$ 2.330,854 S 767,791 $ 3481_22 _1 I ' i -87- J ♦ II r SCHEDULE H-1 -, CITY OF HUNTINGTON BEACH AGENCY FUND J i STATEMENT OF CY.INGES IN ASSETS AND LIABILITIES June. 30, 1987 I I I June 30, June 30, EMPLOYEE DEFERRED COHPENSATION_FUND_ 1986 Additions Reductions 1987 ASSETS: Cash with fiscal agent $ 7,134,577 $ 2,660,823 $1,387,675 $ 8,407,723 Notes receivable, net of allowance for amounts uncollectable 117,890 501,203 87,767 531,326 Other assets 29,375 29,375 TOTAL ASSETS L2.1 281•,842 3,162,026 1,4754442 $ 8,968,426 LIABILITIES: Note payable $ 28,506 $ - $ - j 28,500 1 Employee deferred compensation 7,253,342. 3,074,259 1.3871675 8,939,926 � TOTAL LIABILITIES i,7.281,842 1_ 3.074.259 $1,387.675 $ 8,968.426 -89- J ACINCT FM Em to ee Referred Compensation - This fund accounts for the deposit of monies authorized by employees to be withheld form salaries for payment at a later date. The City rer.ains title to the funds until the employee withdraws the _. funds, Which may not be done until employment is terminated, or any later date. i - I I SCHEDULE I-1 CITY OF HUNTINGTON BEACH SCHEDULE OF GENERAL FIXED ASSETS June 30, 1987 GENERAL FIXED ASSETS: Land $ 37,903,023 Buildings 25,158,461 Improvements other than buildings 11732,270 TOTAL, GEh`FNAL FIXED ASSETS $ 644793.,754 INVEST4ENTlS IN GENERAL FIXED ASSETS FROM: General Fund $ 9,610,067 Special Revenue Funds :3,363,694 Capital Prcjects Funds 21,216,765 ^. Donations 20,603,228 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 64,793,754 f r� _.1 t -90- i a A SCHEDULE I-2 � . CITY OF HUNTINGTON BEACH SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1987 1 � ,- Function and Activitit Land Building Improvements Total r i Fire $ - $ 3,356,490 $ - $ 3,356,490 .q Police - 545,944 - 545,944 Community services 31,155,191 8,887,107 1,732,270 41,774,568 r� Public vorke - 3,289,879 - 3,289,879 r� Hon-departmental 6.,747,832 9,079,,041 15,826,873 S 37,903,023 9_ 25,'-58s461 L_, 732,270 64 793,754 - r� i r i . r r• r -91- L. SCHEDULE I-3 CITY OF HUNTINGTON BEACH SCHEDULE OF CHANGZS IN FIXED ASSETS BY FUNCTION AND ACTIVITY June 30, 1997 1 a General General ;I Fixed Assets Fixed Asses JulZ 1, 1986 Additions Deletions June 30, 1907 City Council $ 7,595 $ _ $ 70595 $ - City Administrator 4,147 - 4,147 - City Treasurer 16,063 - 16,063 - City Attorney 3,063 - 3,063 - City Clerk 5,095 - 5,09.5 - - � I Administrative Services 1,5170533 - 1,517,533 - Community Development 81,361 - 81,361 - I Fire 5,409,918 - 2*053,428 3,356,490 Police 2,747,075 - 2,201,131 545,944 -, Community services 42,202,020 19723,523 2,150,975 41,774,568 Public works 11,445,607 - 8,B5,728 39289,879 Hon-depAremencwl 9,.498,492 6.328.381 _ 5 8261873 Total General '? Fixed Assets 72�931969 ,8,051,904 16 196LI19 64 793,754 i -92- • 1 17 i ,.� GRERSAL XAMG-TKD( DIBT ACCOUNT GROUP . 1 This group is used to account for City long-term debt not reported in proprietary fund operations or Accounted for in Trust Funds. I i I 1 I P� i , j I r � � 1 � V t� it i rA SCHEDULE J-1 CITY OF HUNTINGTON BEACH "i SCHEDULE OF CHANGES IN GENERAL LONG-TERM DEBT June 30, 1987 Outstanding Outstanding June 30, June 30, 1986 Additiono Retirements 1987 1970 Park Bonds $ 3,165,000 $ - $ 280,000 $ 2,885,000 Public Facilities Corporation Mortgage Bonds payable 10,850,000 - 7,640,000 3,210,000 Parking Authority Revenue Bonds 1,060,000 - 115,000 945,000 California Coastal Conservancy note payable 425,000 - - 425,000 Civic Improvement Corporation Certificates of Participation - 20,000,000 - 20,000,000 Compensated absences 3,277,869 297,681 - 3,575,550 Amountb due under owner participation agreement - 1,408,047 - 1,408,047 Advances from other funds 11,825,857 4�296�920 - 16,122,777 ' r Totals �530,603,726 ,$ 26.002,648 81035,000 48,571,374 i M f+1 l r, r•� H 1�L -93- a+f • i I I� I t i STATISTIC&L SECTION WdP- I 'at I 1 r� I A CITY OF HUNTINGTON BEACH , GOVERNMENTAL FUND REVENUES BY SOURCE Last Ten Fiscal Years P� Fiscal Property Other Licenses and Fines and Year Taxes Taxes Permits Forfeitures �+ 1 1977-78 $12,990,877 $11,207,184 $4,977,744 $720,517 1978-79 6,741,720 12,838,538 3,841,745 1,005,451 ' i 1979-80 9,690,005 14,557,330 4,075,945 1,285,038 1980-81 11,761,291 16,994,341 5,496,256 1,526, 072 1981-82 13,646,046 19,050,227 3,002,807 1.,515, 914 I' 1982-03 15,830,448 20,661,102 3,147,981 1,748,017 , 1983-84 16,935,465 22, 878,559 5,099,573 1, 923,143 1984-85 17,638,321 25,923,113 5,963,411 2,093,975 1985-86 19,427,642 27,797,491 4,427,014 1,973,670 r- 1986-87 23,C87,093 28,884,962 4,918,549 2,095,714 ' r- Source: Administrative Services Department, City of Huntington Beach Note: Includes General , Special Revenue Capital Projects and Debt Service Funds i --9G- - ` I� s EXHIBIT A 1 ► I Use of Money From Other Charge: for other Total "1 and Property Agencies Current Service Revenue $1,957,111 510, 495,618 $938,182 $3.68,997 $43,456,230 2,006,834 12,320,144 950,674 162, 735 39,887,041 -� 2,585,767 9,294,178 1,158,294 314,760 42,961,317 4,250, 129 11,402,686 1,488,964 374,249 53,293,988 r 5,375,601 9,109,290 1,316,278 529,704 53,545,867 4, 550,760 7,954,059 2,917,449 1,179,902 57, 990,518 f 6,177,364 9,937,325 2,009,901 1 , 052,519 66,013,849 5,895,407 12,888,344 2,161,424 364,156 72, 928,151 5,718,196 14,143,061 2,349,967 735,484 76,572,525 -w 7,634,071 14,422,660 2,799,219 456,C06 84, 298,274 I' r. r � �i 1 r, I c-, n� �i -95- 1 P P CITY OF HUNTINGTON BEACH GOVERNMENTAL FUND EXPENDITURES BY ^UNCTION ` Last Ten Fiscal Years i Fiscal City City City City Year Council Administrator Treasurer Attorney 1977-78 $59,403 $3,845,700 $866,716 $296,813 PM 1978-79 37,463 3,759,877 1,352,898 373,891 1979-80 48,409 1,941,152 861,840 349,993 1980-81 80,993 402, 983 1,027,518 435,102 1981-82 77,403 399,402 157,703 872,251 1982-83 97,804 498,373 264,221 629,000 1983-84 111,048 480,390 141, 158 729,693 1984--85 128,635 730,966 267,882 806,146 1985-66 90,029 629, 890 286,648 644,685 1986-87 82,121 709,952 281,848 563,804 i Source: Administrative Services Department, City of Huntington Beach Note: Includes General , Special Revenue Capital Projects and Debt Service Funds f -96- .l 1 EXHIBIT B '1I City Administrative Community Clerk Services Development Fire ,^ $154,415 $495,612 $1,512,258 $4,711,161 107,347 541,326 1,411,873 5,658,406 163-533 626,152 1,617,357 6,059 038 1 ' 143,289 1,681,625 1,645,222 6,861,735 193,563 2,059,688 1,750,178 7,315,493 165,076 2,140,377 1,711,545 7,758,422 163,473 2,362,261 2,318,519 8,568,812 --� 194,834 2,550,796 2,725,926 9,493,834 163,608 2,600,737 3,825,545 10,251,710 i 152,622 2,680,065 4,715,013 11,186,607 nJ ►x r n� °•j I t,1 VA (CONTINUED) -97- � I i i II p i I CITY OF HUNTINGTON BEACH GOVERNMENTAL FUND EXPENDITURES BY FUNCTION ` (Continued) Last. Ten Fiscal Years r+ Community Public Fiscal .., Year Police Services Works 1977-78 $0,931,202 $4,183,316 $4,753,345 µ 1978-79 9,44 5,272 272 3,788,705 4,502,434 1979-80 10,879,198 2,654,O06 5,442,196 1980-81 11,721,106 4, 339,820 8,779,723 r 11 9,706,874 t 1981-82 13,366,919 4,404,602 1982-83 14,103,479 5,028,173 10,989,138 1983-84 150,601,080 5,070,115 12,528,418 ; . I1984-85 17,122,642 5,286,948 13,651,510 �-- 1985-86 18,744,618 5,668,499 15,045,519 l.. 1986-87 20,519,431 6,089,924 14,567,248 C' i Source: Administrative Services Department, 4 ! City of Huntington Beach I � Note: Includes General, Special Revenue �- { Capital Projects and Debt Service Funds -98- EXHIBIT B Son Capital Debt Departmental Outlay Service Total I $2,497,049 $8,867,086 $504,375 $41,670,451 4,687,607 5,233,229 504,746 41,405,674 .- 5,644,931 9,627,769 503,986 46,419,560 5,177,413 8,724,986 502,588 51,524,103 4,009,907 8,859,891 470,896 53,644,775 4,058,277 9,639,227 469,006 57,552,118 j 3,740,992 8,620,833 1,830,149 62,266,941 4,867,215 7,873,719 1,896,104 67,605,157 6,795,597 11,791,250 1,846,950 78,385,285 7,708,794 10,730,436 2,189,011 82,176,876 I -99- c.� f A I CITY OF HUNTINGTON BEACH PROPERTY TAX LEVIES AND COLLECTIONS ; Last Ten Fiscal Years da I SECURED TAXES Fiscal Total Total - Delinquency- Year Levy Collections Amount Percent I � 1977-78 $12,5631144 $12,336,834 $166,310 1.48 1978-79 5,635,879 5,525,120 110,759 1.97 --. II . I 1979-80 8,842,899 8,602,751 240,148 2.72 1930-81 10,244,680 9,872,496 352,184 3.44 ' I 1981-82 10,300,308 9,893,563 406,745 3.95 r II 1982-83 11,405,210 11,116,699 288,511 2•53 I 1983-84 11,402,791 11,664,690 430,471 3.7E' �. 1984-85 12,418,398 11,633,797 424,700 3.42 1985-86 13,607,853 12,780,632 452,047 3.32 1986-87 15,088,967 14,447,882 572, 469 3.79 i � r Source- County of Orange j Note- Delinquency does not necessarily equal the levy amount minus the collections since there are always collections of amounts levied in prior years. I i -100- _. _.i i j EXHIBIT C i r w I � i UNSECURED TAXES I Total Total - Delinquency- Levy Collections Amount Percent 1 _ $742,053 $711,519 $30,534 4.11 -, 561,420 537,307 24,113 4.30 861,976 839,468 22,508 2.61 827.168 789,078 38,090 4.60 808,024 737,425 46,596 5.77 960,008 908,666 51,342 5.35 982,118 942,305 25,543 2.60 '} 1,032,103 955,100 33,094 3.21 W! 1,130,254 1,059,541 39,631 3.51 _1 1,186,690 11100,619 44,496 3.75 "1 i 11 i t� -101- c • P tr CITY OF HUNTINGTON BEACH ASSESSED AND ACTUAL VALUE OF ALL, TAXABLE PROPERTY A Last Ten Fiscal Years t ' Fiscal Common Public Total Year Property Utilities Secured on 1 , 1977-78 $755,037,495 $55,476,730 $81.0,514,225 R i 1978-79 710,286,880 59,829,480 778,116,360 ' • 1979-80 872, 397,080 60,d54,280 932,851,360 r" i 1980-81 932,145,962 79,646, 917 1,011,792,879 1981-82 4,608,702,866 322,527,240 4,931, 230,106 1982-83 5,171,181, 975 330,030,190 5,501,212, 165 1983-84 5,559,791,250 362,185,700 5,921,976,950 1984-85 5,940,642,022 426,592,970 6,367,234,992 r' 1985-86 6,519,922,590 450,742,080 6,970,664,670 r- 1986-87 7,019,854,076 475,467,220 7,495, 321,296 r r Source: Orange County Auditor-Controller Note: Assessed value approximates market value for �- years beginning in 1981-82. Prior to this ' Assessed value was approximately 25% of market value. Assessed valuation follows the guidelines of article 13-A of the California `- Constitution. i 1 -102- J c ■roru�+ss.�� - - -- - i 1 i EXHIBIT D Total Estimated Full Percent Assessed Market Increase Unsecured Valuation Valuation (Decrease) $43,807,520 $854,321,745 $3,417, 286,980 53,667, 320 831,783,680 3, 327,134,720 (2.64) 61,546,730 994,398,090 3,977,592,360 19.55 62,512,167 1,074,305,045 4,297,220,181 8.04 288,452,654 5,219,682,760 5,219,682,760 21.47 374,691,841 5,875,904,006 5,875,904,006 12.57 370,949,364 6,292,926,314 6,292,926,314 7.10 466,570,592 6,833,805,584 6,833,805,584 8.60 441,125,438 7,411,790,100 7,411,790,108 8.46 504, 939,681 8,000,260,977 8,000,260,977 7.94 �.J li i M, i i 4J i a f -103- i j i - I EXHIBIT E t i I � PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS LARGEST TAX RATE AREA iN CITY Last Ten Fiscal Years Metro. Basic Orange School Water Year Levy City County Districts Dist. Others Total 1977-78 - $0.38750 $0.33250 $1.56920 $0.03250 $0.13013 $2.45183 1978-79 1.00000 0.04930 0.00080 0.14987 0.02750 0.00428 1.23175 1979-80 1.00000 0.04930 0.00070 0.12572 0.02560 0.00393 1.20525 -� 1980-81 1.00000 0.04635 0.00057 0.12430 0.02225 0.00325 1.19672 i 1981-82 1.00000 0.04635 0.00080 0.12810 0.01980 0.00270 1.19775 1982-83 1.00000 0.05756 0.00043 0.11656 0.01660 0.00237 1.19352 - 1983-84 1.00000 0.05682 0.00039 0.12096 0.02370 0.00210 1.20397 1984-85 1.00000 0.05630 0.00032 0.09962 0.01560 0.00177 1.17361 ( --, 1985-86 1.00000 0.05565 0.00030 0.09329 0.01640 0.00161 1.16725 1986-87 1.00000 0.05529 0.00027 0.10677 0.01480 0.00142 1.17855 Source- County of Orange i � Note- Rates are per $100 of Assessed Valuation Y� i I I 1 I , ,1 IZ -104- I t 1 A i w t CITY OF HUNTINGTON BEACH e� GENERAL OBLIGATION BONDED DEBT RATIOS Last Ten Fiscal Years r Assessed Percent of Bonded P" General Market Debt to Debt Fiscal Bonded Valuation Assessed Per Year Debt (in 1,000s) Valuation Population Capita 1977-76 $5,020,000 $3,417,287 0.15 161,301 $31 .12 1978-79 4,810,000 3,327,135 0.14 167,409 28.73 r 1979-80 4,590,000 3,977,592 0.12 172,200 26.66 1980-81 4,360,000 4,297,220 0.10 173,393 25.15 1981-82 4,150,000 5,219,683 0.08 175,714 23.62 r 1982-83 3,930,000 5,875,904 0.07 178,706 21.99 , 1 1983-84 3,695,000 6,292,926 0.06 179,990 20.53 r^ 1984-85 3,425,000 6,833,806 0.05 181,000 18.92 1985-86 3,165,000 7,411,790 0.04 184,838 17.12 r„ 1986-87 2,895,000 8,000,261 0.04 186,757 15.50 V �f 'Y Source- Administrative Services Department, City of Huntington Beach i.. -105-- EXHIBIT F I --s Debt Service Debt Service- to Total General fund General Fund Principal Interest Total Expenditures Expenditures $200,000 $310,925 $510,925 $29,077,330 1.8 210,000 $292,437 502,437 32,466,386 1.5 220,000 $282,375 502,375 36,901,644 1.4 230,000 $272,737 502,737 40,494,393 1.2 210,000 $260,525 470,525 44,093,600 1.1 220,000 $248,450 468,450 48,747,039 1.0 235,000 $235,800 470,800 53,177,133 0.9 270,000 $221,700 491,700 59,693,628 0.8 260,000 $205,500 465,500 64,492,270 0.7 -� 280,000 $190,702 470,702 67,125,724 0.7 1 •aa� 1 !Y J `�11{ Rf 1 't c4 I � -206- i i i w EXHIBIT G j CITY OF HUNTINGTON BEACH COMPUTATION OF LEGAL DEBT MARGIN i June 30, 1987 Assessed Valuation EBB 000,260`977 Debt Limit: 15% of Assessed Value $1,200,039, 146 r� Amount of Debt Applicable to Limit $2,885,000 Less Net Assets in Debt Service Fund $ 99,305 j Total amount of Debt Applicable to Limit $ 2,785,659 Legal Debt Margin $1,197,254_L4_7 r-� source: Administrative Services Department, City of Huntington Beach r- r 4• --107- v EX41BIT H f CITY OF HUN7INGTION BEACH + COMPLYrATION. OF DIRECT AM) OVFRLAPPINiC; BONDED DEBT June 30, 1987 oat 1986-87 Assessed Valuation: $7,861,210,245 (after deducting $139,050,732 in ; j redevelopment tax allocation increment.) DIRECT AND CNER APPING BONDED DEBT Percent Debt at AWlicable June 30, 1987 f Orange County 8.050 $ 172,642 Orange County Building Authorities 8.050 6,423,316 Orange County Flood Control District 8.053 793,623 Metropolitan Water District 1.660 8,924,641 Municipal Water District of Orange County, 10.430 7,374,010 Water Facilities Corporation + ' Orange County Sanitation Districts #1,2 and 5.256 6,149,520 3 Certificates of Participation Orange County Sanitation District #3 11.254 128,183 Orange County Sanitation District #11 99.912 288,745 Coast Comity college District Authority 30.418 5,338,359 Los Alamitos Unified School Distract 1.903 16,365 Huntington Beach Union High School District 70.937 1,686,924 � i Huntington Beach School District 96.627 1,546,032 Ocean View School District (Various Issues) 92.722-92.981 2,631,366 Fountain Valley School District 31.458 34,603 k. City of Huntington Beach 100.000 2,910,000 City of Huntington Peach Building Authorities 100.000 24,205,000 MrAL GPDSS DIRECT AND OVMUAPPINr BONDED DEBT $ 68,823,329 Less M )OC water Facilities Corporation (100% self-supporting) (7,374,010) Less Orange County Sanitation Dist. #3 (100% self-supporting) (128,183) TOTAL NET AND OVfREAPPIIPS BONDED DEBT $ 61,321,136 I t (I) Excludes tax and revenue anticipation notes, revenge, mortgage revenue and tax allocation bonds • nd non-bonded capital lease obligations. Includes certificates of participation to bc: gold. Ratios to Assessed Val, on: Share of Unauthorized and Unsold Bands: N Direct Debt ($27,115,000) 14% Metropolitan Water District- $4,399,000 H ?btal Gross Debt + Fountain Valley School District-$1,556,542 Total Net Debt 0. 1 Ocean View School District- $1,729,447 State School Building Aid Repayable " 6/30/87- $35,651,300 t' Source: California Municipal Statistics, o -108- ell CITY OF HUNTING. 'FACH + WATER REVENUE BOND C_v. 'RAGE i Last Ten Fiscal Years Expenses (Excluding Net Revenue Fiscal Total Interest and Avaii ble for 4 Year Revenues Depreciation) Debt . 'ervice 7 1977-78 $4, 951,770 $3, 496,631 $1,4S5,139 1973--79 5,539,891 3,653,791 1,886,100 1979-80 6,082,925 3,643,233 2,439,692 1980-81 5,814,133 4,780,478 L,033,655 ' 1981-82 6,557,815 5,286, 338 1,271,477 F' 1982-83 6,521,826 6,255,114 266,712 1983-84 7,035,318 6,657,552 377,766 1984-85 8,049,882 7,687,105 362,777 1985-86 8,650,971 8,760,034 (109,063) 1986-37 9,161,618 8,475,776 685,842 r r- source, Administrative Services Department, City of Huntington Beach �M Note- The 1963 Water Revenue Bond trust indenture requires that the net revenue available for debt service he at least 1.25 times the annual debt service requirement. --109- b. A EXHIBIT I Debt Service Requirements - Principal Interest Total Coverage $120,000 95,400 $215,400 6.8 -a 120,000 91,500 211,500 8.9 130,000 87, '05 217,405 11.2 j 130,000 83,11=j 213,115 4.9 140,000 78,660 218,660 5.8 150,000 73,800 223,800 1.2 ! 150,000 68,700 218,700 1.7 160,000 42,718 202,718 1.8 58,000 39,631 97,631 N/A 184,000 34,455 218,455 3.1 r-•j+ Rai �-1 r� -ii0- i EXHIBIT J t CITY OP HUNTINGTON BEACH DEMOGRAPHIC STATISTICS City Population Percent Square Orange County as a Percent of Year Population Increase Hiles Population County Popoulation r t � 1910 815 3.57 34,436 2.4 1920 1,687 107.0 3.57 61,375 2.7 1930 3,690 118.7 3.57 118,647 3.1 1940 3,738 1.3 3.57 130,760 2.9 1950 51158 38.0 4.72 216,224 2.4 r 1960 11,492 122.8 23.47 702,995 1.6 r 1970 116,400 912.9 26.73 1,420, 386 8.2 1980 172,200 47.9 27.20 1,931,570 8.9 r, 1981 173,393 0.7 27.20 1,972,724 8.8 1982 175,714 1.3 27.20 1,993,831 8.8 1983 178,706 1.7 27.20 2,036,390 8.0 1984 179,990 0.7 27.20 2,066,498 8.7 1965 181,000 0.6 27.20 2,074,326 8.7 r. 1986 184,838 2.1 27.20 2,130,428 8.7 1967 186,757 1.0 27.20 2,193,614 8.5 !w r Source: Community Development Department, City of Huntington Beach F._ `- r i 1 EXHIBIT K 1 ' "1 CITY OF HUNTINGTON BEACH ^' CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSIT i Last Ten Fiscal Years Estimated Bank ., Number Valuation and Savings of of New and Loan Fix-.al Building Percent Construction Percent Deposits Percent Year Permits Chanye (00018) Change in (000's) Change _l 1977-78 6,939 - 150,287 - 714,203 -• 1978-79 6,187 (10.8) 91,462 (39.1) 956,340 19. 9 1979-80 4,457 (28.0) 91,289 ( .2) 955,539 11.6 , 1 1980-8i 4,012 (10.0) 108,794 19.2 1,045,345 9. 4 1981-82 3,230 (19.5) 58,298 (46.4) 1,134,324 8.5 .J 1982-83 2,539 (21.4) 52,458 (10.0) 1,388,634 22.4 1983-84 2,776 9.3 110,747 111.1 1,801,778 29.8 1984-85 3,163 13.9 142,336 28.5 2,033,763 12.9 ...i 1985-86 3,173 0.3 133,579 (6.2) 2,310,482 13.6 n 1986-87 4,098 29.2 92,230 (31.0) I Note- Bank and Savings and Loan Deposits for 1986/87 were not available in time for this report. i Source- Community Development Department, City of Huntington Beach +=' and The Findley Reports on California Financial Institutions. yi -112- CITY OF HUNTINGTON BEACH ZM INSURANCE IN FORCE June 30, 1987 ' f * I Cal--Surance•- Broker E Helicopter Liability-- Hughes 500E '• Helicopter Liability-Bells 47 i Helicopter Liability, Excess Heliport and Hanger Watercraft Hull and Liability Watercraft Hull and Liability, Excess Excess Workers Compensation r r. Robert E. French - Broker Medical Stop Lose Employees Travel Accident Policy r. ;l !I Robert F. Driver- Broker Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake r Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake Fire, Extended Coverage, Flood, Earthquake r Fire, Extended Coverage, Flood, Earthquake 4 Boiler and Machinery Public Official and Employee Faithful Performance Bond r' TOTAL r� Source: Administrative Services Department City of Huntington Beach -113- t 1 EXHIBIT L i w Annual Insurance Camwarw Pblioy4 Expires Premium Arx:ricaIa Insurance Company 0125502 4/1/88 $56,930 Traw aamrica Insurance CamWy 01203180 4/1/88 24,820 Lloyds of L"Wbn 14318 4/1/80 7,938 Trunsamerica Insurance Company 12013i0 4/1/88 5,000 Albany Insurance Company 8H10601 4/1/88 5,700 St. Paul Insurance Company 388FA6607 4/10/88 7,425 Employer's Reinsurance dampany C35059R 7/1/88 87,350 � 1 j American Insurance Comxany 19086 4/30/88 20,000 -� Provident Life and Accident GPA1116 7/1/88 3,398 Insurance Company _+ National Union Fire Inca Co. IMS4281834 6/5/87 112,460 Home Inwurance Company TR314873 6/5/87 90,192 Commrorwealth Insurance Co. C*V1624 6/5/87 23,198 Associated Inter. Ins Coo PP301685 6/5/87 40,185 Allianz Underwriter Ins Co. FC5023054 6/5/87 20,043 Commcm malth Insurance Co. OVP1625 6/5/87 20,620 Progressive Casualty Ins. Co. CF4678350 6/5/87 20,043 Kemper Grp, Amer Mfg Ins Co. 3XNO-17455-01 4/1/88 10,350 IM, Cigna CPBJ01-10-98-6 7/1/88 6,973 p56$ 2,625 L I -11G- EXHIBIT M CITY OF HUNTINGTON BEACH PRINCIPAL PRIVATE EMPLOYERS (Alphabetical Order) .Tune 30, 1987 � 1 r � American Eagle ['heel Company Cambro Manufacturing Company � John Thomas Trucking Company General Telephone Huntington Center ' r � Huntington Humana Hospital �- McDonnel Douglas i.. Mercury Savings r Pacifica Hospital Rainbow Disposal Weiser bock l.. Source: Adminstrative Services Department, City of Huntington C" Beach �- r w.. r L r- 4 EXHIBIT N CITY OF HUNTING"MN BEACH MISC�B S STATISTICS June 30, 1987 Year of incorporation 1909 Form of Government Charter City- Council, City Administrator Area 27.2 Square Miles Population 186,757 Miles of Streets 370 Number of Street Lights 14,250 Fire Protection: Number of Stations 7 Number of Firefighters 132 Police Protection: Number of Stations 1 Number of Sworn Polio Officers 209 Municipal Water Department Number of Gusto mars 46,028 Average Daily Consumption 29.0 Million Galles -- Miles of Water Maine 473 '-? Sewers: Sanitary Sewers 270 Miles Storm Sewers 31 Miles „j Recreation and Culture Number of Parks 57 Miles of Beach 3.4 Annual Beach Visitors 6,000,000 Number of Libraries 4 Library of Volumes 11800,000 ,..1 Full-Time bVloyees 1,038 Bourse: Atine:niertrative Services Department, City of fiuntingtore Beach '~t r � e� -116- tsl I • SCHEDULE C-3 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION ry June 30, 1987 With comparative totals for June 30, 1986 r Self Equipment Totals Insurance Replacement 1987 1986 SOURCES OF WORKING CAPITAL: Operations: Net income (loss) $ 517,077 $ (97,708)$ 419,369 $ 1,985,415 Depreciation - 1,612,867 1,612,867 108,065 Loss on sale of plant property and equipment - 57,997 57,987 - Working capital provided (used) by operations 517,077 1,573,146 2,090,223 2,093,480 Increase in self-insurance claims payable 1,542,000 - 1,542,000 439,000 Sale of plant, property and i equipment - 42,374 42,374 - Contributions received - 1626201748 16 620,748 500,000 TOTAL SOURCES OF WORKING CAPITAL 2j 059,077 18,236,268 20,295,345 3,032,480 r USES OF WORKING CAPITAL: Increase in plant, property and equipment - 1768406300 17*8401300 1.698,750 r NET INCREASE (DECREASE) IN WORKING CAPITAL $ 21059,077 $ 395.968 $ 2,455,045 $ 1.333,.730 r„ ELEMENTS OF INCREASE (DECREASE) IN WORKING CAPITAL: Cash and investments $ 2,037,689 $ 468,370 $ 2,506,059 $ 1,293,765 �~ Interest receivable 4,246 (1,343) 2,903 6,147 Accounts receivable 1,515 - 1,515 (386) Accounts payable 14,635 (71.059) (56,424) 43,860 r Accrued payroll 992 - 992 (91656) NET INCREASE (DECREASE) IN WORKING CAPITAL $ 2t059tO77 $ 395,968 $ 2,455,045 1.1.333730 -88- '-