HomeMy WebLinkAboutFY 1976/1977 City of Huntington Beach Annual Financial Repor i
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CITY OF HUNTINGTON BEACH
STATE OF CALIFORNIA
1 �
ANNUAL
1 310,
FINANCIAL o
HUNTINGTON BEACH
REPORT 7 7
1 � - J
FOR THE YEAR ENDED JUNE 30, 1977
1
1
' PREPARED UNDER DIRECTION OF
DIRECTOR OF FINANCE
.1
PEAT, MMARWICK, MITCHELL & CO.
' CERTIFIED PUBLIC ACCOUNTANTS
660 NEWPORT CENTER DRIVE
' NEWPORT BEACH,CALIFORNIA 92660
The Honorable City Council of
the City of Huntington Beach, California
1 We have examined the financial statements of the various funds and account groups of the City of Huntington
Beach for the year ended June 30, 1977 (Exhibits A through EE, on Pages 6 through 61 ) , as listed in the
table of contents . Our examination was made in accordance with generally accepted auditing standards , and
except as to the General Fixed Assets Group of Accounts and as explained in the third paragraph below, in-
cluded such tests of the accounting records and such other auditing procedures as we considered necessary in
the circumstances .
As explained in Note 1 of notes to financial statements , the City has not maintained a detail record of its
qeneral fixed assets. Because we were unable to satisfy ourselves by appropriate audit tests or by other
means , as a result of such incomplete records, we are unable to express an opinion on the accompanying fi-
nancial statements of the General Fixed Assets Group of Accounts.
As explained in Note I of notes to financial statements , the Water Utility Fund does not maintain adequate
detail records of its fixed assets. The amounts by which the financial statements would change if appropri-
ate records were maintained, cannot be determined.
In our opinion, the aforementioned financial statements , except for the General Fixed Assets Group of Accounts
and the Water Utility Fund, present fairly the financial position of the various funds and general long term
debt group of accounts of the City of Huntington Beach at June 30, 1977 and the results of operations of the
' various funds and changes in financial position of the Meadowlark Golf Course Fund for the year then ended
in conformity with generally accepted accounting principles applied on a basis consistent with that of the
preceding year. Also, in our opinion, except for the effects of such adjustments , if any, as might have
been determined to be necessary had adequate detail fixed asset records been maintained, the financial state-
ments of the Water Utility Fund present fairly its financial position at June 30. 1977 and the results of its
operations and changes in its financial position for the year then ended in conformity with generally
' accepted accounting principles applied on a basis consistent with that of the preceding year.
' November 11 , 1977 5
CITY OF HUNTINGTON BEACH
COMBINtD BALANCE SHEET - ALL FUNDS '
JUNE 30, 1977
Special Debt
General Revenue Service '
Fund Funds Funds
Assets
Cash and term deposits 5 4,825,206 10,556,122 52,101
Accounts receivable, net 70,811 727,041
Delinquent property taxes receivable-net of reserve for '
delinquent taxes 100,288 4,821
Notes receivable
Investments at cost .which approximate market (Note 5 ) 158,447
Other receivables
Due from other funds 210, 160
Due from other governmental units, net 87,007 1 ,658,205
Prepaid expenses 313,421
Deposits 8,700
Net project costs
Amount to be provided for debt retirement
Amount to be provided .under financing leases (Note 3) ,
Leased facilities under financing leases (Note 3)
Property plant and equipment,net of allowance for depreciation
Restricted assets - cash and investments
Total assets $ 5,765,340 12,950,068 56,922 '
See accompanying notes to financial statements.
6
CITY OF HUNTINGTON BEACH
COMBINED BALANCE SHEET - ALL FUNDS kXHIBIT A
JUNE 30, 1977
' Capital Trust General General
Projects Enterprise and Agency Long Term Fixed
Funds Funds Funds Debt Assets
(Unaudited)
' 91 ,864 1 ,935,448 765,083
204,021 6,300
' 202,797
196,305
9,468
32,269
142,651
5,425,490
13,292,698
13,292,698
20,716,322 18,563,761
308,878
64 2 402 11 1 116 831 18 1 8 6 4 91 ,8 3, ,7 , ,718 188 3 5 59
7
CITY OF HUNTINGTON BEACH
COMBINED BALANCE SHEET - ALL FUNDS '
JUNE 30, 1977
Special Debt '
General Revenue Service
Liabilities, Reserves, Fund Balances Fund Funds Funds
and Retained Earnings
Liabilities: '
Cash overdraft $ 489,303 17,462
Accounts payable ar;d accrued expenses 1 ,601 ,608 366,783
Prepaid revenue 103,444 ,
Customer deposits 229,743 512
Due to other funds 1 ,448 491 ,000
Accrued interest payable
Current installment of bonds/notes payable (notes 2,6, and 7)
Matured interest payable
Deferred rental income (Note 3) 613,381
Special assessment bonds and interest payable ,
Bond interest payable in future years
Obligation under capital leases
Bonds, net of current installment (note 6)
Notes payable, net of current installment (Notes 2 and 7) ,
Total liabilities 1 ,936,243 1 960 979 17, 2
Encumbrances outstanding 954.018 1 ,1 ,796
Reserves; Contributions, Fund Balances and Retained Earnings
Reserve for revenue bond retirement
Reserve for workers ' compensation disability claims 260,418
Other 156,035
Total reserves 4j6.453
Contributions:
Contributions in aid of construction
Contribution from general fund
Total contributions - - -
Fund balances :
Unappropriated fund balance 2,850,079 8,564,968 39,460 '
Appropriated fund balance 25,000 220,872
Total fund balances 2,875,079 8,785,840 39,460
Reserve for investments in general fixed assets -
Retained earnings
Commitments and contingencies (Notes 4 and 8)
Total liabilities, reserves , fund balances and '
retained earnings $ 5,765,340 12,950,068 56,922
See accompanying notes to financial statements. 8
CITY OF HUNTINGTON BEACH
' .COMBINED BALANCE SHEET - ALL FUNDS EXHIBIT A, Continued
JUNE 30, 1977
Capital Trust General General
' Projects Enterprise and Agency Long Term Fixed
Funds .Funds Funds Debt Assets
' (Unaudited)
249, 103 1 ,326
' 77,438 162,368
260,000
16,590
t 133,768 300,478
5,822
' 36,877
13,292,698
2,710,000 _ 5,020,000
1 ,932,405 105,012
5, 125, 12 18,718, 18 -
540, 127
- 540,127 - -
10,268,252
1 ,359.932
10?*8_184 - -
' 91 ,864 656,260
gl .86 + - 65 o - -
' - - - 31 ,856,459
6, 109,274
91 ,864 23,402,711 1 , 116,831 18,718, 188 31 ,856,459
9
CITY OF HUNTINGTON BEACH
GENERAL FUND EXHIBIT B '
BALANCE SHEET
JUNE 30, 1977
Assets
Cash and term deposits $ 4,825,206
.Accounts receivable - net 70,811
Delinquent property taxes receivable - net 100,288
Due from other funds 210, 160 '
Due from other governmental units 87,007
Investments, at cost which approximate market (Note 5) 158,447
Prepaid expenses 313,421 '
Total assets $ 5,765,340
Liabilities, Reserves and Fund Balance
Liabilities:
Accounts payable and accrued expenses $ 1 ,601 ,608 ,
Prepaid revenue 103,444
Customer deposits 229,743
Due to other funds 1 ,448 ,
Total liabilities 1 ,936,243
Encumbrances outstanding 954,018
Fund balance
Appropriated fund balance 25,000
Unappropriated fund balance 2,850,079
Total fund balance 2,875,079 '
Total liabilities, assets and fund balance $ 5,765,340
See accompanying notes to financial statements.
10
CITY OF HUNTINGTON BEACH
' TABLE OF CONTENTS
' Exhibit Page
' .Letter of Transmittal 1
Elected City Officials 4
Departments of the City 4
Accountants' Report 5
Financial Statements:
' Combined Balance Sheet - All Funds A 6
General Fund:
' Balance Sheet B 10
Statement of Changes in Fund Balance C 11
Statement of Revenue Estimated and Actual D 12
' Statement of Appropriations, Expenditures and Encumbrances E 16
' Special Revenue Funds:
Combined Balance Sheet F 20
Combined Statement of Changes in Fund Balance G 22
' Statement of Revenue, Expenditures and Encumbrances -
Budget and Actual :
' Special Gas Tax Fund H 24
Civic Improvement Fund 1 25
Sewer Fund J 26
Planned Local Drainage Fund K 27
General Revenue Sharing Fund L 28
Federal Manpower Grant Fund M 30
Other Grants Fund N 31
' Park Acquisition and Development Fund 0 33
Self Insurance Fund P 35
Traffic Safety Fund Q 36
' Parking -Meter Fund R 37
CITY OF HUNTINGTON BEACH
TABLE OF CONTENTS '
Exhibit Page ,
Debt Service Funds:
Combined Balance Sheet S 38 '
Combined Statement of Revenue, Expenditures and
Fund Balance (Deficit) T 39 '
Capital Project Funds:
Combined Balance Sheets U 40 '
Combined Statement of Revenue, Expenditures and Fund Balance V 41
1
Enterprise Funds:
Combined Balance Sheet W 42 '
Water Utility Fund:
Statement of Revenue and Expenses X 44 '
Statement of Changes in Retained Earnings Y 45
Statement of Changes in Financial Position Z 46 '
Meadowlark Golf Course Fund: '
Statement of Revenue and Expenses AA 48
Statement of Changes in Accumulated Deficit BB 49
Statement of Changes in Financial Position CC 50
Trust and Agency Funds: '
Combined Balance Sheet DD 51
Combined Statement of Changes in Fund Balance EE 52 ,
..CITY OF HUNTINGTON BEACH.
' .TABLE OF CONTENTS
Eich i b i t Page
' Notes to Financial Statements 53
Supplemental Information
' Statement of General Fund Revenues - Other than Property Taxes Schedule 1 62
Statement of Expenditures and Encumbrances for General Fund Schedule 11 63
Statement of Assessed Value, Debt Limit and Ratio of General Obligation
' Bond Debt to Assessed Value and Per Capita Schedule 111 65
Statement of Tax Delinquencies and Impounds Schedule IV 66
Statement of Future General Obligation Bond Debt Requirements by Year
' Based on Bond Debt Schedule V 67
Statement of Future Water Revenue Bond Requirements by Year on Outstanding
Debt Schedule VI 68
Huntington Beach Public Facilities Corporation - Statement of Bonded Debt Schedule VII 69
' Huntington Beach Public Facilities Corporation - Statement of Future Debt
-Requirements by Year Based on Bonded Debt Schedule Vill 70
Parking Authority of the City of Huntington Beach - Statement of Bonded
Debt Schedule IX 71
Parking Authority of the City. of Huntington Beach - Statement of Future
Debt Requirements by Year Based on Bond Debt Schedule IX 71
' City of Huntington Beach Public Facilities Corporation
Accountants'. Report 72
' Financial Statements
Combined Balance Sheet A 73
Combined Statement of Earnings and Retained Earnings (Accumulated Deficit) B 74
' Combined Statement of Changes in Cash Position C 75
Notes to Financial Statements 76
City of Huntington Beach Parking Authority
Accountants' Report 81
CITY OF HUNTINGTON BEACH
TABLE OF CONTENTS '
Exhibit Page
City of Huntington Beach Parking Authority, Continued
Financial Statements
Balance Sheet A 82
Statement of Earnings and Retained. Earnings B 83 ,
Statement of Changes in Financial Position C 84
Notes to Financial Statements 85
1
CITY OF HUNTINGTON BEACH
' OFFICE OF
DIRECTOR OF FINANCE
FRANK B. ARGUELLO, DIRECTOR
Mr. Floyd G. Belsito
City Administrator
City of Huntington Beach, California
Dear Mr. B.eisito:
Submitted herewith is the Finance Department's annual report containing the City's financial statements for
' the fiscal year ended June 30, 1977. The comprehensive report covers all funds, reflects the results of all
financial transactions, and represents the culmination of all accounting processes carried out during the
fiscal year.
General Fund
Revenues and transfers from Other Funds for general fund purposes totalled $27,541 ,643 in FY-1977, an
increase of 16% over FY-1976. The amount of revenue from various sources and the increase (decrease) over prior
year is as follows:
Percent Increase (decrease)
Source Amount of Total Over FY-1976
Property Taxes $ 10,643,971 38.6 $ 2,031 ,165
Other Local Taxes 6,785,656 24.6 1 ,063,553
Licenses and Permits 2,817,209 10.2 228,277
Fines and Forfeitures 214,8o8 .8 79,592
From Use of Money and Property 1 ,050,938 3.8 143,468
' From Other Agencies 2,567,992 9.3 527,785
From Charges for Current Services 942,760 3.4 116,848
Other Revenue 48,714 .2 (563)
' Transfers from Other Funds 2,469,595 9. 1 (350,274)
Total $ 27,541 ,643 100.0% $ 3,839,851
' Gross expenditures and encumbrances for general fund purposes totalled $27,993,705 in FY-1977, an increase of
16.4% over FY-1976. Expenditures and encumbrances by function are indicated as follows and demonstrate
changes in expenditure and encumbrance levels relative to prior fiscal year:
1
CITY OF HUNTINGTON BEACH
Increase
Percent (Decrease) '
Function Amount of Total Over FY-1976
Administrative Services $ 2,817,679 10. 1 (577,421 )
Community Services 8, 183,433 29.3 1 ,279,800 '
Public Safety Services 14,391 ,957 51 .5 1 ,954,769
Support Services 2,540,636 9.1 1 ,285,456_
Total direct costs 27,933,705 100.0% 3,942,604
Less: applied costs (transfers from
other funds) 765,000 2.7 (961 ,568)
Total $ 27, 168,705 97.3 4,904,172 ,
The unappropriated general fund balance increased from $1 ,826,067 to $2,850,079 in FY-1977, an increase of ,
$1 ,024,012,or 56%. This is the second consecutive year that the City's unappropriated fund balance has in-
creased significantly and is a positive indication that our financial position is on a relatively sound basis.
Assessed valuation increased by $129,455,785 to $710,079,235 in current fiscal year. Current assessed valuation '
is 22.3% greater than that of the prior year and has been made possible because of continuing re-valuation of
property and addition of new construction to the tax rolls. A comparison of assessed valuation over the last
three years with anticipated FY-1978 assessed valuation is as follows: '
Assessed Increase Over Prior Year
Fiscal Year Valuation Amount Percent ,
1978 854,321 ,745 144,242,510 20.3
1977 710,079,235 129,455,785 22.3
1976 580,623,450 50,650,140 9.6
1975 529,973,310 87,701 ,652 19.8
Outstanding general obligation bonds as of June 30, 1977 totalled $5,220,000, comprised of $140,000 outstanding '
on the 1955 Water Bond issue and $5,080,000 outstanding on the 1970 Park Bond issue. There is, as of June 30,
1977, $2,830,000 outstanding on the 1963 Water Revenue Bond but this does not represent a general obligation
of the City of Huntington Beach. The tax rate necessary to cover bond interest and redemption on the general '
obligation bond issues totalled $.07449 per $100 of assessed valuation in FY-1977 and is anticipated to be
$-05904 per $100 of assessed valuation in FY-1978.
2
CITY OF HUNTINGTON BEACH.
Comparative data for the City's Water Utility operations for the past two years i.s as follows:
1977 1976
' Total operating revenue. $ 4,252,495 3,668,608
Net Income 1 ,095,024 631 ,072
A supplemental information section has been included in this report which contains comprehensive statistical
data. Such .data is presented so as to relate physical , economic, social and political characteristics of
our City which should give the readers of this report a more broad and more complete understanding of the
' City and its financial operations.
In accordance with Section )219 of the City Charter, the City Council shall employ at the beginning of each
fiscal year an independent certified public accountant who shall examine the books, records, inventories and
reports of all officers and employees who receive, control , handle or disburse public funds. The report of
Peat, Marwick, Mitchell & Co. , Certified Public Accountants, is included in this report.
I wish to express my appreciation to the members of the Finance Department without whose dedicated effort
this report would not be possible. In addition, I would express my appreciation to you and the City Council
for the continuing support and interest in planning and conducting the fiscal affairs of this city in a
' responsible and progressive manner.
Respectfully submitted,
.i,� ,4.
' Frank B. Argue to
Director of Finance
3
CITY OF HUNTINGTON BEACH
ELECTED OFFICIALS ,
City Council
Ronald R. Pattinson Mayor '
Ron Shenkman Mayor Pro Tem
Ted W. Bartlett Councilperson
Alvin M. Coen Councilperson '
Norma B. Gibbs Councilperson
Richard W. Siebert Councilperson
Harriett M. Wieder Councilperson
Other
Don P. Bonfa City Attorney ,
Warren G. Hall City Treasurer
Alicia M. Wentworth City Clerk '
Departments of the City
Floyd G. Belsito City Administrator
Richard A. Harlow Assistant City Administrator
Frank B. Arguello Director of Finance ,
John F. Behrens Building and Community Development Director
Henry H. Hartge Director of Public Works
Walter W. Johnson Library Director ,
Vincent G. Moorhouse Harbors & Beaches Director
Raymond C. Picard Fire Chief
Earle W. Robitaille Police Chief
Edward Selich Planning and Environment Director ,
Edward Thompson Personnel Director
Norman L. Worthy Recreation & Parks Director
4
CITY OF HUNTINGTON BEACH
' GENERAL FUND EXHIBIT C
STATEMENT OF.CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 1977
Fund balance, July 1 , 1976 $ 1 ,826,067
' Add:
Revenues 27,541 ,643
Cancellation of 1976 outstanding encumbrances 662,483
Transfer of excess special assessment equity 13,591
' Total additions 28,217,717
Deduct: 27,168,705.
Expenditures and encumbrances
Fund balance, June 30, 1977 $ 2,875,079
aSee accompanying notes to financial statements .
11
1
CITY OF HUNTINGTON BEACH
GENERAL FUND EXHIBIT D
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
YEAR ENDED JUNE 30, 1977
Excess '
of Actual Percentage
Revenue Over of
Original Revised Actual (Under) Estimate
Budget Change Budget Revenue Estimate Aealiied ,
General Property Taxes
Current taxes - secured $ 9,674,600 689,786 10,364,588 10,021 ,748 (342,840) 97% '
Current taxes - unsecured 509,200 101 ,642 610,842 600,596 (10,.246) 98
Interest and penalties 35,000 (15,000) 20,000 17,220 (2,780) 86
Aircraft 4,000 477 4,477 4,407 (70) 98 '
Total general property taxes 10,223,000 776,907 10,999,907 10,643,971 (355,936) 97
Other Local Taxes
Sales and use tax 4,617,000 4,617,000 5,205,890 588,890 113
Franchises - utility 440,000 440,000 415,699 (24,301 ) 94
Franchises - pipeline 10,000 10,000 19,715 9,715 197 ,
In lieu - water utility 520,000 520,000 567,036 47,036 109
Occupancy tax 70,000 70,000 76,530 6,530 109
Cigarette tax 545,000 545,000 498,782 (46,218) 92 '
Real property transfer tax -0- 2,004 2,004 -
Total other local taxes . 6,202,000 6,202,000 6,785,656 583,656 109
Licenses and Permits
License - business 545,000 545,000 544,307 (693) 100
License - oil well production 1 ,200,000 1 ,200,000 1 ,051 ,893 (148, 107) 88 '
License - bicycle 20,000 20,000 18,356 (1 ,644) 92
License - oil inspection 76,000 76,000 75,850 (150) 100
License - animal 16o,000 160,000 150,821 (9, 179) 94
Permits - building 435,320 435,320 571 ,409 136,089 131
Permits - plumbing 105,720 105,720 128,919 23,199 122
Permits - electrical 111 ,955 111 ,955 135,830 23,875 121
Permits - heating 47,005 47,005 61 ,862 14,857 132
Permits - waste water 20,000 20,000 21 ,630 1 ,630 108
Permits - street and curb cut $ 40,000 40,000 37,050 (2,950) 93%
12
CITY OF HUNTINGTON BEACH
GENERAL FUND EXHIBIT D, Continued
' STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
YEAR ENDED JUNE 30, 1977
Excess
' of Actual Percentage
Revenue Over of
Original Revised Actual (Under) Estimate
Budget Change Budget Revenue Estimate Realized
Licenses and Permits, Continued
' Permits - other $ 12,000 12,000 19,282 7,282 161%
Total licenses and permits 2,773,000 2,773,000 2,817,209 44,209 102
' Fines and Forfeitures
Court fines 125,000 125,000 186,876 61 ,876 150
Library fines and fees 17,000 17,000 27,932 10,932 164
Total fines and forfeitures 142,000 142,000 214,808 72,808 151
Use of Money and Property
Interest income 130,000 130,000 194,7b3 64,783 150
Lease - Huntington Driftwood 96,000 96,000 107,366 11 ,366 112
Rentals - land 24,000 24,000 25,451 1 ,451 106
Rentals - park buildings 39,259 39,259 14,386 (24,873) 37
Rentals - pier and concessions 25,000 25,000 39,296 14,296 157
Rentals - beach and concessions 90,000 90,000 103,287 13,287 115
City oil wells 90,000 90,000 69,900 (20, 100) 78
Royalties and easements 90,000 90,000 83,420 (6,560) 93
Royalties - park 1 ,000 1 ,000 798 (202) 80
' Parking lots 393,000 393,000 361 ,405 (31 ,595) 92
Sunset Vista camper facility 38,174 38, 174
Showmobile rental 683 683 -
Community gardens 244 244 -
' Central Park concessions 7,000 7,000 10,217 3,217 146
Other 30,000 (25,000) 5,000 1 ,528 (3,472) 31
Total use of money and property $1 ,008,259 (18,000) 990,259 1 ,050,938 60,679 106%
13
CITY OF HUNTINGTON BEACH
GENERAL FUND EXHIBIT D, Continued ,
STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
YEAR ENDED JUNE 30, 1977
Excess
of Actual Percentage ,
Revenue Over of
Original Revised Actual (Under) Estimate
Audget Change Budget Revenue Estimate Realized
Revenue from Other Agencies
Trailer coach license fee $ 75,000 75,000 102,947 27,947 137% '
Alcoholic beverage fee 55,000 55,000 40,738 (14,262) 74
County lifeguard and maintenance 110,000 110,000 92,959 (17,041 ) 85
Documentary transfer tax 200,000 200,000 319,866 119,866 160
State oil and gas lease 100,000 100,000 77,015 (22,985) 77 '
Federal government -0- 2,421 2,421 -
Motor vehicle in lieu 1 ,578,000 1 ,578,000 1 ,682;217 104,217 107
Bagley conservation fund -0- 1 ,405 1 ,405
Joint Powers - Fire 116,000 116,000 139,600 23,600 120
Injury leave reimbursements 61 ,728 61 ,728 -
State mandated cost reimbursements 14,336 14,336 ,
Other 10,000 10,000 32,760 22,760 337
Total revenue from other 2,244,000 2,244,000 2,567,992 323,992 114
agencies ,
Charges for Current Services
Zoning and subdivision 30,000 30,000 48,292 18,292 161 '
Sale of maps and publications 8,000 8,000 9,691 1 ,691 121
Oil well application fees 4,000 4,000 1 ,375 (2,625) 34
Misc. filing and cert. fees 1 ,000 1 ,000 1 ,000 100
Plan_ check fees 16o,000 160,000 284,407 124,407 178 '
Engineering and ins.pection fees 160,000 16o,000 203,825 43,825 127
Weed abatement 25,000 25,000 29,732 4,732 119
Special Police services 29,488 29,488 - '
Recreation fees 168,259 168,259 128,688 (39,371 ) 77
Recreation contract 90,000 3,000 93,000 104,119 11 ,119 112
Exemption declarations 8,000 6,000 9,020 1 ,020 113
Water quality analysis 2,000 2,000 1 ,041 (959) 52
Junior lifeguard program 11 ,022 11 ,022 13, 163 2, 141 119
Library service 12,000 12,000 8,569 (3,431 ) 71
Post reimbursement $ 80,000 80,000 35,215 (44,785) 44% '
14
CITY OF HUNTINGTON BEACH
GENERAL FUND EXHIBIT D, Continued
' .STATEMENT OF REVENUE - ESTIMATED AND ACTUAL
YEAR ENDED JUNE 30, 1977
Excess
' of Actual Percentage
Revenue Over of
Original Revised Actual (Under) Estimate
Charges for Current Services, Budget Change Budget Revenue Estimate Realized
Continued
Adventureland $ 2,000 2,000 735 (1 ,265) 37%
Certificate of occupancy fees 5,000 5,000 9,289 4,289 186
' Geological review 5,000 5,000 (5,000)
Grading plan check fee 1 ,885 1 ,885
Sanitation District fee 14,926 14,926 -
Special plan check fees 7, 172 7,172
Other 928 928
Total charges for current
services 771 ,281 3,000 774,281 942,760 168,479 122
' Other Revenue
Sale of property - equipment 15,000 15,000 14,582 (418) 97
Sale of merchandise 2,000 2,000 6,071 4,071 304
Discounts earned 5,000 5,000 4,916 (84) 98
Special fees - engineering 4,000 4,000 (4,000) -
Special fees - inspection 3,000 3,000 4, 115 1 , 115 137
Other 3,000 3,000 19,030 16,030 634
Total other revenue 32,000 32,000 48,714 16,714 152
Total general fund revenue 23,395,540 761 ,907 24, 157,447 25,072,048 g14,60i 103
' Transfers From Other Funds
Special Gas Tax Fund 396,000 396,000 403,733 7,733 102
Civic Improvement Fund. 1 ,585,000 1 ,585,000 1 ,521 ,000 (64,000) 96
Traffic Safety Fund 400,000 400,000 378,517 (21 ,483) 95
Parking Meter Fund 105,000 105,000 126,607 21 ,607 121
Water Utility Fund 39,400 39,400 39,400
Other 338 338
Total transfers 2,525,400 2.525,400 29469,595 (55,805) 98
Total General - Fund revenue and
transfers $25,920,940 761 ,907 26,682,847 27,541 ,643 858,796 103%
See accompanying notes to financial statements. 15
CITY OF HUNTINGTON BEACH ,
GENERAL FUND
.STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES ,
YEAR ENDED JUNE 30, 1977
Appropriations Expenditures ,
Personal Maintenance
.Original Revised Services and Capital
Budget Change Budget Cost Operation Outlay '
Administrative
City Council $ 59,533 14,583 74, 116 38,819 26,550 735
Non-Departmental 2,933,550 (419,752) 2,513,798 2, 143,784
Administration 347,483 63,753 411 ,236 329, 124 71 ,065 897 '
Civic Promotion 55,604 44,561 100, 165 4,886 48,618
Total Administrative 3,396, 170 (296,855) 3,099,315 372,829 2,290,017 1 ,632
Community Services
Planning 544, 113 52,425 596,538 475,624 32,678 2,489 '
Library 915,437 123,525 1,038,962 680,845 217,326 12,404
Recreation and Parks 1 ,571 ,453 144,8b1 1 ,71b,314 1 ,283,055 311 ,240 24,838
Public Works 4,865,501 510,007 5,375,5o8 3,074.166 1 ,1154,110 178,760
Total Community Services 7,896,5o4 830,di 8 8,727,322 5,513,690 2,015,354 218,491 ,
Public Safety 4,047 448 313,417
Fire 4,293,790 4o9,064 4,702,854 , 103,752
Police 7,026,498 636,884 7,663,382 6,827, 177 620,901 221 ,290
Harbors and Beaches 1 ,079,065 b4,656 1 , 143,921 805,412 312,612 375 ,
Building 797,257 55,219 852,476 796,350 19,924 5,668
Total Public Safety 13, 19b,610 1 , 166,023 14,362,633 12,476,387 1 ,266,854 331 ,085
Support I
Treasurer 1 ,206,923 14,689 1 ,221 ,812 102,334 1 ,073,925 4,330
Attorney 279, 155 18,566 297,721 243,065 27, 179 21
Clerk 94,222 23,967 118, 189 81 ,385 19,652 1 ,943
Personnel 192,538 14,362 20b,900 128,358 43,9o4 1 ,252
Finance 738,818 42,920 781 ,738 621 , 150 138,154 6,696
Total Support 2,511 ,b56 114,704 2,626,360 1 , 176,292 1 ,302,814 14,242
Total General Fund Direct
Costs $27,000,940 1 ,814,b90 28,815,630 19,539,196 6,875,039 5b5,450
16
CITY OF HUNTINGTON BEACH
' GENERAL FUND EXHIBIT E
STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES
YEAR ENDED JUNE 30, 1977
encumbrances
Total Excess of Appropriations Percentage
Outstanding Expenditures and Over (Under) Expenditures of Appropriations
Encumbrances Encumbrances and Encumbrances _ Used
8,809 74,913 (797) 101%
115, 194 2,258,978 254,820 90
' 3,094 4o4, 180 7,056 98
26, 104 79,608 20,557 79
' 153,201 2,817,679 281 ,636 91
' 8,988 519,779 76,759 87
93,276 1 ,003,851 35, 111 97
49,053 1668, 186 48,128 97
284,581 4:991 ,617 383,891 93
' 435,898 8, 183,433 543,889 94
' 2to,o49 4,64'864 88,488 99
75,506 7,7 7 ( , 9 ) 101
26,525 1 ,144,924 (1 ,003) 100
' 5,551 827,493 24,983 97
317,631 14,391 ,957 (29,324) -
26,358 1 ,206,947 14,865 99
' 642 270,907 26,814 91
492 103,472 14,717 88
537 1774,051 2,849 84
19,259 785,259 3,521) 97
' 47,288 2,540,636 85,724
96
954,018 27,933,705 881 ,925 9%
17
CITY OF HUNTINGTON BEACH
GENERAL FUND '
STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES
YEAR ENDED JUNE 30, 1977
Appropriations Expenditures '
Personal Maintenance
Original Revised Services and Capital
-Budget Change -Budget _ Cost Operation Outlay
Less Applied Costs
Revenue Sharing Fund $ 765,000 765,000 486,952 278,o48 ,
Total applied costs 765,000 765,000 486,952 278,048
Net General Fund $ 26,235,940 . 1 ,814,690 28,050,630 19,052,246 6-,875,039 287,402 '
See accompanying notes to financial statements. '
18
CITY OF HUNTINGTON BEACH
' GENERAL FUND EXHIBIT E, Continued
STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES
YEAR ENDED JUNE 30, 1977
Encumbrances
Total Excess of Appropriations Percentage
Outstanding Expenditures and Over (Under) Expenditures of Appropriations
Encumbrances Encumbrances and Encumbrances Used
765,000 100%
' 100
765,000
' 954,018 27, 168,705 881 ,925 97%
19
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS '
COMBINED BALANCE SHEET
JUNE 30, 1977
Special Civic
Total Gas Tax Improvement Sewer '
Assets
Cash and term deposits $10,556, 122 2,766,478 923,490 1 ,695,564
Accounts receivable, net 727,041 234,529 492,512 '
Due from other governmental units , net 1 ,658,205 373,389 26,564 7,898
Deposits 8,700 8.7pq
Total assets $ 12,950,068 3, 139,867 1 , 184,583 2,204,674 i
Liabilities, Reserves and Fund Balance '
Liabilities:
Cash overdraft $ 489,303 .
Accrued payroll 102,375
Accounts payable 264,408 1 ,306 183,680 ,
Deposits 512
Due to other funds 491 ,000
Deferred rental income 613,381 613,381 '
Total liabilities 1 ,960,979 1 ,306 797,061
Encumbrances outstanding 1 ,786,796 547, 126 39,230
Reserves:
Workers' compensation disability claims 260,418 ,
Other 156,035 - 84,584 -
Total Reserves — 416— 5+5 - 84,584 -
Fund Balance (deficit)
Unappropriated 8,564,968 2,591 ,435 302,938 2,165,444
Appropriated 220,872
Total fund balance 8,785,840 2,591 ,435 302,938 2,165,444 '
Total liabilities, reserves, and
fund balance $12,950,068 3,139,867 1 ,184,583 2,204,674
See accompanying notes to financial statements. 20
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT F
COMBINED BALANCE SHEET
JUNE 30, 1977
' Park
Planned Federal Federal Acquisition
Local Revenue Manpower Other and Self Traffic Parking
' Drainage Sharing Grant Grants Development -Insurance Safety Meter
1 ,974,625 581 ,686 1 ,787.,516 826.,763
16,046 348,464 706,779 119,338 55,054 4,673
' 1 ,990,671 930, 150 706,779 119,338 1 ,842,570 831 ,436 - -
349,693 139,610
' 96,616 4,729 1 ,030
73,857 365 2, 133 3,047
512
491 ,000 -
491 ,000 - 520, 166 144,724 2,645 4,077 - -
195,870 306,443 5,505 661 ,729 30,ts04 89
' - - - 26a,418
31 ,226 1 ,225 39,000
- - 1 ,225 39,000 260,418
- -
1 ,051 ,703 623,707 18i . lo8 (688,340) 1 ,770,121 566,852
220,872
' 1 ,272,575 623,707 181 , 108 (688,340) 1 ,770,121 566,852
1 ,9901671 930, 150 706,779 119,338 1 ,842,570 831 ,436 - -
21
1
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS '
COMBINED STATEMENT OF CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 1977
Special Civic
.Total Gas Tax Improvement Sewer '
Fund balance (deficit) at July 1 , 1976 $ 6,062,038 1 ,784,031 277,730 2,054,550
Additions: '
Excess (deficiency) of revenue over expen-
ditures and encumbrances 1 ,510,406 (190,518) 22,590 (92,068)
Cancellation of encumbrances outstanding at '
July 1 , 1976 1 ,299,555 997,922 2,618 202,962
Total fund balance and additions 8,871 ,999 2,591 ,435 302,938 2, 165,444
Deductions : '
Repayment of excess grant funds received 86, 159
Fund balance (deficit) at June 30, 1977 $ 8,785,840 2,591 ,435 302,938 2,165,444
See accompanying notes to financial statements. ,
22
i
CITY OF HUNTINGTON BEACH .
' SPECIAL REVENUE FUNDS. EXHIBIT G
COMBINED STATEMENT OF CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 1977
' Park
Planned Federal Federal Acquisition
Local Revenue Manpower Other and Self Traffic Parking
Drainage Sharing Grant Grants Development Insurance Safety Meter
615,061 212,607 (103,312) 6,875 1 ;146,015 68,481 - -
' 657,514 41 6 4 6 8 624 624 0 1 497 871 - -
57,5 3 37 3 7,973 ( 9 ,. ) 3 ,
69,463 22,606 3,409 75 500
1 ,272,575 623,707 267,267 (688,340) 1 ,770,121 566,852 - -
86,159
1 ,272,575 623,707 18i ,M (688,340) 1 ,770,121 566,852 - -
23
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT H ,
SPECIAL GAS TAX FUND
$TATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1977 ,
Budget Actual
Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue:
Interest income $ 50,000 50,000 119,766
State tax: Section 2107 638,000 638,000 672,888
Section 2107.5 10,000 10,000 10,000 ,
Section 2106 713,000 713,000 760,682
Total revenue 1 ,411 ,000 - 1 ,411 ,000 - - 1 ,563,336 ,
Expenditures and encumbrances:
Transfer to General Fund 396,000 396,000 403,733 403,733
Capital outlay: '
Traffic signals 28,839 85,773 114,612 64,693 8, 152 72,645
Street improvements 1 ,242,569 949,088 2, 191 ,657 735,907 538,975 1 ,274,882
Engineering 10,000 10,000 2,395 (1) 2,394
Other 1 ,083,516 (1 ,044,863) 38,653 '
Total expenditures and
encumbrances 2,750,924 (2) 2,750,922 1 ,206,728 547, 126 1 ,753,854 '
Excess (deficiency) of revenue
over expenditures and encum-
brances $(1 ,339,924) (2 Z _ (1 ,339,922) (190,518)
See accompanying notes to financial statements.
i
- 24
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT
CIVIC IMPROVEMENT FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET !AND ACTUAL
YEAR ENDED JUNE 30, 1977
Budget Actual
' Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue:
Rental Income i4,552
Interest income $ 30,000 30,000 31 , 50
Utility taxes:
' Water 165,000 165,000 155,541
Gas 501 ,000 501 ,000 452,290
Telephone 798,000 798,000 832,673
Electricity 1 ,345,000 1 ,345,000 1 ,310,693
Sale of surplus land 5,533
Total revenue 2,839,000 2,839,000
2,802,732
Expenditures and encumbrances :
Transfer-to General Fund 1 ,582, 195 2,805 1 ,585,000 1 ,521 ,000 1 ,521 ,000
Civic Center lease 854,900 854,900 854,900 854,900
Library lease .399,000 399,000 399,000 399,000
Capital outlay 3. 167 (2,805) 362 2,605 2,805
Other - - - 2,437 2,437
Total expenditures and
encumbrances 2,839,262 - 29839,262 2,780, 142 2,780, 142
' Excess (deficiency) of revenue
over expenditures and encum-
brances $ (262) (262) 22,590
See accompanying notes to financial statements.
25
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT J
SEWER FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL '
YEAR ENDED JUNE 30, 1977
Budget Actual ,
Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue:
Interest income $ 75,000 75,000 86,264
Sewer permits 105,600 105,600 150,434
Local assessments 134,400 134,400 113,811 '
Special assessments 8,567
Total revenue 315,000 - 315,000 - - 359,076
Expenditures and encumbrances:
Sunset Beach Sanitary District 203, 122 203,122 191 ,594 191 ,594
Heil/Bolsa Chica 186,354 186,354 167,828 18,526 186,354 ,
Pump Station C improvements 15,000 15,000 487 11 ,762 12,249
Master sanitary sewer plan 2,000 2;000 2,000 2,000
Appropriations 20,929 20,929 (10,762) (10,762)
Sewer mains 13 13 13 13
Sunset Beach sewer meters 10,000 10,000 16 7,369 7,385
Newland Street improvements 14, 170 14, 170 14, 170 14, 170 '
Stewart Street sewer 16,471 16,471 14,744 1 ,573 16,317
Warner Avenue sewer 10 063 10,063 10 0633 10 063
Other
21,761 21 ;7b1
Total expenditures and _
encumbrances 203, 122 275,000 478,122 411 ,gi4 39,230 451 , 144
Excess (deficiency) of revenue ,
over expenditures and encum-
brances $ 111 ,878 (275,000) (163,122) (92,068)
See accompanying notes to financial statements.
26
CITY UNTI G O BE O F H N T N CH
A
' SPECIAL REVENUE FUNDS FXHIBIT K
PLANNED LOCAL DRAINAGE FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1977
Budget -Actual
' Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue:
Interest income $ 75,000 75,000 82,077
Local assessments 675,000 675,000 923,332
Special assessments 31 ,980
' Total revenue 750,000 - 750,000 - - 1 ,037,389
Expenditures and encumbrances:
Graham Street storm drain 4,800 4,800
Drainage District #7 . 54,486 54,486
Beach Blvd. storm drain 2,000 2,000 1 ,862 1 ,862
Adams Avenue storm drain 123,439 123,439 123,439 123,439
Bolsa Chica storm drain 197,070 197,070 1 ,109 195,870 196,979
Delaware It. storm drain-Phase 1 500 500
Other 750,000 (377,495) 372,505 52,795 52,795
Total expenditures and
encumbrances 750,000 - 750,000 184,005 195,870 379.,875
i
Excess of revenue over expendi-
tures and encumbrances $ 657,514
' See accompanying notes to financial statements.
27
i
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT L
GENERAL REVENUE SHARING FUND
,STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1977
Budget Actual
Original Revised ,
Budget Change Budget Expenditures Encumbrances Total
Revenue: ,
Interest income $ 19,408
General Revenue Sharing 565,000 134,000 699,000 1 ,395,086
Anti-Recession Fiscal Assistance 113,544
Other
12
Total revenue 565,000 134,000 699,000 1 ,528,050
Expenditures and encumbrances:
Transfer to General Fund 765,000 765,000 765,000 765,000
Warner Ave. fire station 69,463 b9,463 28,b42 40,621 b9,463
Graham St. fire station 37,585 37,585 37,585 37,585
Library materials 76,763 76,763 1 ,7b3 1 ,763
Fire engine 91 ,000 91 ,000 91 ,000 91 ,000
Shame] Ash program 218,200 218,200
Recreation and Parks equipment b0,300 60,300 5,581 41 ,610 47, 191
Huntington Beach Playhouse 50,000 50,000
Public Works equipment 115,000 115,000 21 ,463 60,040 81 ,503
Parking control equipment 22,000 22,000 18,461 18,461
Newland House landscaping 9,000 91000 58 2,740 2,798
Validation study 55,000 55,000
Word processing equipment 25,375 25,375 884 9,220 10,104
Automated reporting system 75,000 75,000
High school chimes 3,500 3,500 3,500 3,500
Audit fees 2,000 2,000
Anti recession program:
Street tree replacement 18,000 18,000 9,778 541 10,319
Right of way agent 19,151 19, 151 5,726 5,726 '
Banning Ave. sewer manhole 4,373 4,373
Parking meters 42,000 42,000 (10) 42,010 42,000
Total expenditures and
encumbrances 765,000 993,710 1 ,758,710 879,970 306,443 1 , 186,413
2
i
CITY OF HUNTINGTON BEACH
' SPECIAL REVENUE FUNDS EXHIBIT L , continued
GENERAL REVENUE SHARING FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET. AND ACTUAL
' YEAR ENDED JUNE 30, 1977
Budget Actual
' Original Revised
Budget Change Budget Expenditures Encumbrances Total
Excess (deficiency) of revenue
over expenditures and encum-
brances $(200,000) (859,710) (1 ,059,710) - - 341 ,637
See accompanying notes to financial statements.
29
CITY OF HUNTING TON BEACH
SPECIAL REVENUE FUNDS EXHIBIT M ,
FEDERAL MANPOWER GRANT FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL ,
YEAR ENDED JUNE 30, 1977
Budget Actual ,
Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue:
Title I program $ 444,366 466,814 911 , 180 531 ,330
Title II program 588,000 726,457 1 ,314,457 726,540
Title VI program 1 ,248,234 1 ,248,234 903,953 '
Title X program 107,000 107,000 101 , 18b
Manpower Planner 25,000 25,000 23,000
Summer Youth program 27,000 '
Summer Youth 1976 program 63,235
Non-Disadvantaged Summer Youth
program 6,780
Other 49,008 '
Total revenue 2,387,600 1 ,218,271 3,605,671 - - 2,432,032
Expenditures and encumbrances : '
CETA Title I program 579,420 491 ,814 1 ,071 ,234 587,612 1 ,050 588,b62
CETA Title 11 program 47,278 726,457 773,735 696,666 696,666
CETA Title VI program 426,586 428,586 682,226 2,844 685,070
CETA Title X program 101 , i% 101 , 186 101 ,173 39 101 ,212
Non-disadvantaged Summer Youth
program 7,672 7,672
Recreation support 4,000 4,000 3,.205 1 ,572 4,777
Total expenditures and '
encumbrances 1 ,160,470 1 ,218,271 2,378,741 2,078,554 5,505 2,084,059
Excess of revenue over expendi-
tures and encumbrances $1 ,227, 130 - 1 ,227, 130 - - _ 347,973
See. accompanying notes to financial statements. '
30 _
' CITY OF HUNTINGTON BEACH
' SPECIAL REVENUE FUNDS jEXHIBIT N
OTHER GRANTS FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL
' YEAR ENDED JUNE 30, 1977
Budget Actual
' Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue:
EDA Grant - Gothard Street $ 175,000 175,000 120.,000
National Science Foundation
' Circuit Rider 30,000 30,000 20,616
District Guidance Center 244
HUD 701 Grant 16,938
Juv. Diversion and Counseling 326,150 326, 150 1 ,030
' Juvenile Diversion Treatment 104, 104
County Revenue Sharing 63,416 63,416 62,393
HUD Block Grant 690,000 690,000 540,325
' EDA Grant - fire station 567,000 567,000 102,926
Burglary Prevention 85,624 85,b24 10,427
Step Program 57,820 57,820 40,907
Other 47,000
' Total revenue 1 ,2 ,5 710, 1 ,995,010 - - lip ,,qiO
Expenditures and encumbrances:
EDA Grant-Gothard Street 175,000 175,000 175,000 175,000
EDA Grant-Warner Ave Fire Sta. 567,000 567,000 103,292 555,760 659,052
National Science Foundation
' Circuit Rider 18,287 18,267 22,364 56 22,420
HUD 701 Grant 2,744 2,744 16,938 16,938
Juv. Diversion and Counseling 145 145 1 ,009 1 ,009
Juvenile Diversion Treatment 326,150 326, 150 96,443 96,443
' HUD Block Grant 1 ,072,626 1 ,072,626 540,352 25,259 565,611.
Bike trails 377,000 377,000 1 ,392 2,911 4,303
Police grants 143,444 143,444 51 , 191 75,160 126,351
' Seniors Outreach program 41 ,079 41 ,079 15,078 437 15,515
Seniors outreach program-1977 63,416 63,416 51 ,469 2, 146 53,615
Other 29,277 29,277
' Total expenditures and
encumbrances $ 626,676 2,160,215 2,786,891 1 , 1032805 661 ,729 1 ,765,534
31 -
1
CITY OF_HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT N, continued '
OTHER GRANTS FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL 1
YEAR ENDED JUNE 30, 1977
Budget Actual 1
Original Revised
Budget Change Budget Expenditures Encumbrances Total
Excess (deficiency) of revenue 1
over expenditures and encum-
brances $ 657,890 (1 ,449,771 ) (791 ,881 ) - - (698,624) 1
1
1
See accompanying notes to financial statements.
1
i
1
1
1
1
32
1
CITY OF HUNTINGTON BEACH
' SPECIAL REVENUE FUNDS EXHIBIT 0
PARK ACQUISITION AND DEVELOPMENT FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
' BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1977
' Budget Actual
Original Revised
Qudget Change Budget Expenditures Encumbrances Total
' Revenue:
Interest income $ 80,612
Federal grant 115,000 115,000
' State of California grant 190,044 190,044
Subdivision license fee 482,592 482,592 685,237
Unit lot fee 646,812 646,812 607,140
' Other _ - - 53
Total revenue 1 '434,44s 1 ,434,448 1 ,373, 42
Expenditures and encumbrances:
Park improvements -
Golden West 188,000 (182,232) 5,768 5,768 5,768
' Old Town 75,000 84,300 159,300 159,902 159,902
Yorktown 24,354 24,354 24,354 24,354
Sunset Heights 436,267 438,267 318,036 311S,038
Goldenwest Fields . 844 844 844 844
' Central 235,000 0 99,66b) 35,334 13,007 22,325 35,332
Oakview 25,000 (18,979) 6,021 4,484 1 ,475 5,959
Chris Carr 8,500 4,969 13,469 13,469 13,469
Marina 243,075 (230,158) 12,917 12,842 12,842
Pleasant View 1 ,280 1 ,280 1 ,280 1 ,280
Hawes 1 ,280 1 ,280 1 ,280 1 ,280
Taylor 131 ,666 131 ,666 131 ,666 131 ,666
' Sims Grove 35,000 (35,000)
Rob.inwood 1 ,280 1 ,280 1 ,280 1 ,280
Glenview 850 701 1 ,551 1 ,551 1 ,551
Newland 30,000 (26,823) 3,177 3,177 3, 177
Lutheran 20,000 20,000 20,000 20,000
Other 414,610 (414,610)
' Recreation Centers 6,600 6,600 1 ,483 5, 117 b,600
33
1
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT 0 , continued '
PARK ACQUISITION AND DEVELOPMENT FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL ,
YEAR ENDED JUNE 30, 1977
Budget Actual ,
Original Revised
Expenditures and encumbrances, Budget Change ' Budget Expenditures Encumbrances Total
Continued
Bike trails $ 2, 143 2,143 285 1 ,887 2,172 '
Appraisals 2,700 2,700
Other 195, 1138 3B7,084 582,272 3,497 3,497
Total expenditures and ,
encumbrances 1 %450,223 - 1 ,450,223 718,207. 30,804 749,011
Excess (deficiency) of revenue ,
over expenditures and encum-
brances S (15,775) - (15,775) - - 624,031
See accompanying notes to financial statements. '
34
' E CH
CITY OF HUNTINGTON B A
' SPECIAL REVENUE FUNDS EXHIBIT P
SELF INSURANCE FUND
STATEMENT.OF REVENUE, EXPENDITURES AND ENCUMBRANCES
' BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1977
Budget Actual
' Original Revised
Budget Change Budget Expenditures Encumbrances Total
' Revenue:
Interest income $ 12, 102
Compensation premiums:
General Fund 789,852
' Grant Fund 36,425
Water Utility Fund 18,000
Redevelopment Agency 264
Other 271
Total revenue - - - - - 856,914
Expenditures and encumbrances:
Operating expenses 145,500 045,500)
Personal service costs 19,856 19,856 20,474 20,474
Travel costs 750 750 380 380
Contractual services:
Insurance administrator 15,000 15,000 17,026 17,026
' Legal 5,520 5,520 5,507 5,507
Medical 100,000 100,000 90,692 90,692
Insurance - excess coverage 48,050 48,050 46,950 46,950
Disability payments:
Permanent employees 75,000 75,000 48,573 48,573
Temporary employees 10,000 10,000 2,847 2,847
Permanent disability 5,000 5,000 2,060 2,060
' Establish reserve for claims - - 124,007 124,007
Other 1 ,094 1 ,094 438 89 527
' Total expenditures and
encumbrances 145,500 134,770 280,270 358,.954 89 359,043
Excess (deficiency) of revenue
over expenditures and encum-
brances $ (145,500) (134,770) (280,270) 497,871
See accompanying notes to financial 35
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS EXHIBIT Q '
TRAFFIC SAFETY FUND
STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
BUDGET AND ACTUAL '
YEAR ENDED JUNE 30, 1977
Budget Actual
Original Revised
Budget Change Budget Expenditures Encumbrances Total
Revenue '
Traffic fines S 400,000 400.000 378,517
Total revenue 400,000 _ - 400,000 378,517
Expenditures and encumbrances '
Transfer to General Fund 400,000 - 400,000 378,517 — 378,517
Excess of revenue over expenditures
and encumbrances $
. See accompanying notes to financial statements .
36
CITY OF HUNTINGTON BEACH
' -SPECIAL: REVENUE FUNDS •EXHIBIT R
PARKING METER FUND
•STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES
' BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1977
Budget Actual
Original Revised
•Budget Change -Budget Expenditures Encumbrances Total
' Revenue
Parking meters:
Commercial $ 15,870 15,870 17,163
Residential 8,000 8,000 9,791
' Pacific Coast Highway 81 ,130 81 , 130 99,653
Total revenue 105,000 - 105,000 - - 126,607
' Expenditures and encumbrances
Transfer to General Fund 105,000 - 105,000 126,607 - 126,607
Excess of revenue over expendi-
tures and encumbrances
' See accompanying notes to financial statements.
1
37
1
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS EXHIBIT S '
COMBINED BALANCE SHEET
JUNE 30, 1977
1955 Water Bond 1970 Park Bond
Interest and Interest and
Total Redemption Fund Redemption Fund '
Assets
Cash and term deposits $ 52, 101 52, 101
Due from other governmental units, net of ,
allowance for delinquent property taxes 4,821 354 4,467
Total assets $ 56,922 52,455 4,467 '
Liabilities and Fund Balance (Deficit)
Liabilities - cash overdraft $ 17,462 17,462 '
Fund balance (deficit) 39,460 52,455 (12,995)
Total liabilities and fund balance (deficit) $ 56,922 52,455 4,467 ,
See accompanying notes to financial statements.
38
CITY OF HUNTINGTON BEACH
' DEBT SERVICE FUNDS EXHIBIT T
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
YEAR ENDED JUNE 30, 1977
' 1955 Water Bond 1970 Park Bond
Interest and Interest and
Total Redemption Fund Redemption Fund
Fund balance (deficit) at July 1 , 1976 $ 8,645 55,909 (47,264)
' Revenue:
Property taxes 534, 181 34,039 500,142
Interest income 936 936
' Total revenue 535, 117 34,975 500,142
Expenditures:
Redemption of matured bonds 190,000 35,000 155,000
Interest on bonds 313,775 3,325 310,450
Other 527 104 423
' Total expenditures 504,302 38,429 465,873
Excess (deficiency) fund balance and revenue
over expenditures 39,460 52,455 (12,595)
Fund balance (deficit) at June 30, 1977 $ 39,460 52,455 (12,995)
' See accompanying notes to financial statements.
39
CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS EXHIBIT U ,
COMBINED BALANCE SHEET
JUNE 30, 1977
Special 1955 Water '
Capital Bond
Total Outlay Construction
Assets
Cash $ 91 ,864 14,554 77,310
Unappropriated Fund Balance $ 91 ,864 14,554 77,310 ,
See accompanying notes to financial statements. ,
40
CITY OF HUNTINGTON BEACH
' CAPITAL PROJECTS FUNDS EXHIBIT V
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE
YEAR ENDED JUNE 30, 1977
' Special 1955 Water
Capital Bond
Total Outlay Qonstruction
Fund balance at July 1 , 1976 $ 91 ,864 14,554 77,310
Revenue - - -
Expenditures - - -
Fund balance at June 30, 1977 $ 91 ,864 14,554 77,310
See accompanying notes to financial statements.
1
1
41
CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS EXHIBIT W '
COMBINED BALANCE SHEET
JUNE 30, 1977
Water ,
Utility Meadowlark Golf
Total Fund Course Fund
Assets
Cash and term deposits $ 1 ,935,448 1 ,871 ,488 63,960 ,
Accounts receivable, net:
Trade 176,324 176,324
Other 27,697 27,697
Investments , at cost which approximate-market (Note 5) 196,305 196,305 '
Deposits 32,269 32,269
Due from other entities 9,468 9,468
Total current assets 2,377,511 2,313 551 63,960 ,
Property, plant and equipment, net of allowance
for depreciation 20,716,322 17,554,002 3, 162,320
Assets restricted as to use - cash with '
fiscal agent 308,878 308,878
Total assets $ 23,402,711 20,176,431 3,226,280
See accompanying notes to financial statements. ,
42
CITY OF HUNTINGTON BEACH
' ENTERPRISE FUNDS EXHIBIT W, continued
COMBINED BALANCE SHEET
JUNE 30, 1977
' Water
Utility Meadowlark Golf
Total Fund Course Fund
iabilities, Reserves, Contributions and
Retained Earnings (Deficit)
' Current liabilities payable from current assets) :
Accounts payable $ 166,867 166,867
Contracts payable 900 900
Customer deposits 77,438 77,438
Accrued interest payable 47,028 47,U28
Accrued expenses 34,308 34,308
Current installment of long term note payable 13,768 13,768
' (Note 7 )
Current installment of bonds payable (Note 6 ) 120,000 120,000
Current liabilities (payable from restricted assets) :
' Matured interest payable 5,822 5,822
Accrued interest payable 16,590 16,590
Total current liabilities 482,721 421 ,925 60,796
Long term note payable, net of current installment -
(Note 7 ) 1 ,932,405 1 ,932,405
Bonds payable in future years net of current install-
ment (Note 6) . 2,1710,000 2,710,000
Total liabilities 5, 125, 126 3, 131 ,925 1 ,993,201
Reserve for revenue bond retirement 540, 127 540,127
Contributions:
In aid of construction 10,268,252 10,268,252
From General Fund 1 .359.932 92,608 1 ,267,324
Total contributions 11 ,628, 184 10.360.860 1 ,267,324
Retained earnings (deficit) 6,109,274 6,143,519 (34,245)
' Total liabilities, reserves, contributions
and retained earnings $ 23,402,711 20,176,431 3,226,280
See accompanying notes to financial statements.
43
CITY OF HUNTINGTON BEACH
WATER UTILITY FUND EXHIBIT X '
STATEMENT OF REVENUE AND EXPENSES
YEAR ENDED JUNE 30, 1977
Operating Revenue:
Metered water sales $ 3,743,574 ,
Municipal water sales 98,030
Fire hydrant rentals 66,571
Acreage fees 74,841 ,
Tract fees 76,964
New services 166, 156
Other water services 26,359
Total operating revenue 4,252,495
Operating Expenses :
Source of supply $ 497,327
Pumping expense 679,639 '
Water treatment 27,528
Transmission and distribution 292 -871
Administrative and general 531 :608 '
Contributions to general fund in lieu of taxes 567,036 2.596.009
Depreciation U 8.067
Total operating expenses 3, 134,076 - '
Operating income 1 ,118,419
Nonoperating Income:
Interest income 73,235
Other 7,523
Total nonoperating income 80.7_0 '
Total operating and nonoperating income - 1 , 199, 177
Nonoperating Expense '
Bond interest 102,812
Fiscal agent fees 1j4 .
Total nonoperating expense 104,153 ,
Net income $ 1 .095.024
Sae-a==Aay-ing notes to financial statements. 44
CITY OF HUNTINGTON BEACH.
' WATER UTILITY FUND EXHIBIT Y
STATEMENT OF CHANGES IN RETAINED EARNINGS
YEAR ENDED JUNE 30, 1977
' Retained earnings at July 1 , 1976 $ 5,396,773
Add:
Net income 1 ,095,024
Total balance and additions 6,491 ,797
' Less:
Increase in reserve for revenue bond retirement 308,878
Transfers to General Fund - 1955 Water Bonds 39,400
Retained earnings at June 30, 1977 $ 6,143,519
' See accompanying notes to financial statements.
I
45
CITY OF HUNTINGTON BEACH
WATER UTILITY FUND EXHIBIT Z ,
STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED JUNE 30, 1977
Sources of Working Capital :
Current operations:
Net earnings $ 1 ,095,024 ,
Charges against earnings not involving working capital :
Depreciation 538,067
Working capital provided from operations 1 ,633,091 ,
Decrease in assets restricted as to use - cash with fiscal agent 17,843 ,
Decrease in accumulated depreciation on assets contributed in prior years 601 ,751
Increase in contributions in aid of construction 1 ,894,853.
Total working capital provided 4,147,538 '
Disposition of Working Capital :
Additions to fixed assets 358,013
Additions to fixed assets from the recordation of assets contributed in prior years 2,496,605
Increase in reserve for revenue bond retirement 17,303
Transfer to General Fund for redemption of 1955 Dater Bonds 39,400 '
Decrease in long term bonds payable 120,000 .
Total working capital used 3,031 .321
Increase in working capital $ 1 ;116,217 '
Changes in Components of Working Capital were as follows:
Increase (decrease) in current assets:
Cash and term deposits $ 1 ,261 ,655
Accounts receivable , trade (net) (24,122)
Accounts receivable, other (net) 19,479 '
Due from other entities 20,278
Due from other entities 9,468
Total $ 1 ,286,758 ,
46
CITY OF HUNTINGTON BEACH
WATER UTILITY FUND EXHIBIT Z, continued
STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED JUNE 30, 1977
' Changes in Components of Working Capital , Continued
Decrease in current liabilities:
Accounts payable $ 77,726
Customer deposits 77,037
' Accrued payroll 5,778
Current installment of bonds payable 10,000
Total 170,541
Increase in working capital $ 1 , 116,217
See accompanying notes to financial statements.
1
47
CITY OF HUNTINGTON BEACH
MEADOWLARK GOLF COURSE FUND EXHIBIT AA
STATEMENT OF REVENUE AND EXPENSES
YEAR ENDED JUNE 30, 1977
Revenue:
Lease revenue $ 150,000
Interest income 1 ,548 ,
Total revenue 151 ,548
Expenditures:
Interest 136,951
Depreciation 15,760 '
Total expenditures 152,711
Net loss $ 1 , 163
See accompanying notes to financial statements. '
48
CITY OF HUNTINGTON BEACH
' MEADOWLARK GOLF COURSE FUND EXHIBIT BB
STATEMENT OF CHANGES IN ACCUMULATED DEFICIT
YEAR ENDED JUNE 30, 1977
Accumulated deficit at July 1 , 1976 $ 33,082
Add:
Net loss 1 ,163
' Accumulated deficit at June 30, 1977 $ 34,245
See accompanying notes to financial statements.
49
CITY OF HUNTINGTON BEACH
MEADOWLARK GOLF COURSE FUND EXHIBIT CC
STATEMENT OF CHANGES IN FINANCIAL POSITION '
YEAR ENDED JUNE 30, 1977
Sources of Working Capital :
ital : '
Net loss $ 1 ,163 ,
Charges against net loss not involving working capital :
Depreciation 15,760
Working capital provided from operations 14,597 ,
Disposition of Working Capital :
Payment of principal position of notes payable 1-3,768
Increase in working capital $ 829 ,
Changes in the components of working capital were as follows:
Increase in current assets- cash $ 1 ,548
( Increase) Decrease in-current liabilities: ,
Increase in current portion of notes payable (901 )
Decrease in accrued interest payable 182 ;
Total increase in current liabilities (719)
Increase in working capital $ 829 ,
See accompanying notes to financial statements.
50
CITY OF HUNTINGTON BEACH .. .
' TRUST AND AGENCY FUNDS EXHIBIT DD
COMBINED BALANCE SHEET
JUNE 30, 1977
' Employee Redevelopment
Trust Deferred Agency Special
Total Fund Compensation Fund Assessments
Assets
Cash and term deposits $ 765,083 162,368 363,784 202,054 36,877
' Accounts receivable 6,300 6,300
Notes receivable 202,797 202,797
Net project costs 142,651 142,651
Total assets $ 1 ,116,831 162,368 572,881 344,705 36,877
Liabilities and Fund Balance
' Liabilities:
Due to other funds $ 260,000 260,000
Refundable deposits 162,368 162,368
Special assessment bond principal
and interest payable 36,877 36,877
Accounts payable and accrued payroll 1 ,326 1 ,326
Total liabilities 460,571 162,368 261 ,326 36,877
Fund balance 656,260 - 572,881 83,379
Total liabilities and fund balance $ 1 , 116,831 162,368 572,881 344,705 36,877
See accompanying notes to financial statements.
51
T-
1Z
CITY OF HUNTINGTON BEACH
TRUST AND AGENCY FUNDS EXHIBIT EE
COMBINED STATEMENT OF CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 1977
Employee Redevelopment
Trust Deferred Agency Special
Total Fund Compensation Funds Assessments
Fund balance at July 1 , 1976 $ 405,422 389,289 - 16, 133
Add:
Interest earned 46,136 42,092 4,044
Contributions received 223,821 144,486 79,335
Capitalized project costs 136,610 136,610
Total additions and fund balance 811 ,989 575,867 219,989 16,133
Less:
Contributions to General Fund 13,591 13,591
Paid to participants in employee
deferred compensation plan 2,986 2,986
Expenditures 139,152 136,610 2,542
Total deductions 155,729 _ 2,986 1361610 16, 133
Fund balance at June 30, 1977 $ 656,260 _ 572,881 83,379 -
See accompanying notes to financial statements.
52
' CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1977
Note I Summary. of Significant Accounting Policies
' Description of Funds and Account Groups
The basic accounting and reporting entry in government is a "fund." A fund is defined as an independent
' fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources
together with all related liabilities, obligations, reserves, and equities which are segregated for the
purpose of carrying on specific activities or attaining certain objectives in accordance with special
' regulations, restrictions or limitations. Because a clear distinction should be made between the accounts
relating to current assets and liabilities and those related to fixed assets and long term liabilities,
a self balancing "group of accounts" is utilized. The types of funds and account groups used and their
respective definitions are as follows:
Funds
a) The General Fund-to account the City's ordinary operations which are financed from taxes and
other general revenues and to account for all financial transactions not properly accounted
' for in another type of fund.
b) Special Revenue Funds-to account for the proceeds from specific revenue sources (other than special
' assessments) or to finance specified activities as required by law or administrative regulation.
c) Debt Service Funds-to account for the payment of interest and principal of general obligation long-
term debt.
d) Capital Project Funds-to account for the receipt and disbursement of monies used for the acquisi-
tion of capital facilities other than those financed by special assessment and enterprise funds.
e) Enterprise Funds-to account for the financing of .services to the general public where all or
most of the costs involved are financed through charges by users of such services.
' f) Trust and Agency Funds-to account for resources held by a governmental unit as trustee or agent for
individuals, private organizations, and other governmental units.
Account Groups
' a) General Fixed Assets Group of Accounts-to account for the general fixed assets of the City other
than those accounted for in the enterprise or trust funds.
b) General Long Term Debt Group of Accounts-to account for the general obligation long term debt of
' the City.
53
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued '
Note 1 , Summary of. Significant Accounting Policies, Continued
Basis of Accounting
u
The accrual basis of accounting is followed for enterprise and trust and agency funds. The accrual basis
of accounting is defined as that basis of accounting- under which revenues are recorded when earned and
expenditures are recorded as soon as they result in liabilities for benefits received, not withstanding
that the receipt of the revenue or the payment of the expenditures may take place, in whole or in_ part,
in another accounting period.
The modified accrual basis of accounting is followed for the general , special revenue, capital project, ,
and debt service funds. The modified accrual basis of accounting is defined as that basis of accounting
under which expenditures other than accrued interest on general long-term debt are recorded at the time
liabilities are incurred and revenues are recorded when received in cash, except for material and/or avail-
able revenues which should be accrued to reflect properly the taxes levied and the revenues earned.
Investments
Investments are stated at cost, adjusted for amortization of premium or discount. Investments generally
consist of Federal Government-backed securities, bankers acceptances and municipal securities (Note 5) .
Fixed Assets
The general fixed assets of the City, those fixed assets which are not accounted for in the enterprise '
funds, are accounted for in a separate self-balancing group of accounts described as the "General Fixed
Assets Group of Accounts." General fixed assets are not depreciated. General fixed assets acquired by
the City prior to July 1 , 1973 and during 1977 are not recorded in the City's accounting records. General '
fixed assets, except municipal improvements other than buildings acquired. from July 1 , 1973 through June 30,
1976 are recorded at cost in the City's accounting records.
The accounts of the water utility fund include $21 ,634,870 of property and equipment, less $4,080,868 accu-
mulated depreciation. Of these assets, approximately $8,373,000 represents water service assets which
have been donated to the City by independent contractors prior to June 30, 1968. Such donated assets have
been recorded at values estimated by City personnel . During 1977, the City conducted an inventory of fixed '
assets of the water utility fund. This inventory. resulted in the .recording of approximately $1 ,894,000 in
water serivice assets that were previously unrecorded. The City's evaluation of its water utility fixed
assets is still continuing. Depreciation of the fixed assets of the Water Utility Fund is charged to
operations using the straight-line method on the estimated useful life of an asset within a particular group
of assets as follows:
Asset Group Life
Production and pumping plant 15 TO years '
Transmission and distribution plant 25-75 years
General plant 10-30 years
Transportation equipment 6-10 years '
54
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
Note 1 , Summary of Significant Accounting Policies, Continued
' l;eneral Long Term Debt General long term debt, except for enterprise funds, is not carried with the current liabilities of
a fund, but rather is recorded in a separate self-balancing group of accounts described as the "General
Long Term Debt Group of Accounts." (Notes 2, 3 and 6) .
Budgetary Control
Budgetary control is an essential element in governmental accounting and reporting. The City adopts
an annual budget and utilizes an "encumbrance system." Under this procedure, obligations or commit-
ments in the form of purchase orders or contracts which are chargeable to an appropriation are recorded
as restrictions of fund balance through a reserve account.
' Vacation and Sick Leave
It is the policy of the City to record the cost of vacation and sick leave when paid. At June 30, 1977,
the total unrecorded liability for vacation and sick leave accumulated by City employees was approximately
$ 1 ,640,669.
Pension Plan
' City employees participate in the Public Employees Retirement System administered by the State of Califor-
nia. This retirement plan covers substantially all City employees. The total pension expense recognized
by the City for the fiscal year ended June 30, 1977 was approximately $1.,534,257. The excess, if
' any, of the actuarially computed value of vested benefits over the total of the above pension fund is not
determinable.
' Deferred Employee Compensation
The City has initiated a deferred compensation plan whereby eligible City employees may elect to defer
a portion of their earnings for Federal income tax purposes. The deferred compensation plan has been
approved by the Internal Revenue Service (Service) . The Service stipulated in its approval that legal
title to the deferred compensation funds, together with any interest thereon, most rest with the City.
For purposes of financial statement presentation, these deferred compensation funds have been treated as
' a separate trust fund of the City.
55
CITY OF H N N 'U TI GTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued '
Note 1 , Summary of Significant Accounting Policies, Continued
Description of Leasing Arrangements
The City has entered into long term sublease agreements with the Huntington Beach Public Facilities Cor-
poration for the rental of the Civic Center complex and the Central Library. Both sublease agreements pro-
vide that the ownership of the facilities, constructed on land owned by the City, will be transferred to ,
the City, at no additional cost, upon completion of the term of the subleases. Proper accounting under such
circumstances requires that such leases be accounted for under the financing method. Under the financing
method, the transaction is regarded as an installment purchase, whereby an asset and an associated long
term liability are established. Annual rental payments are treated as reductions of a long term liability.
Note 2 Equipment Sale - Leaseback Agreements
The City has entered into two sale-leaseback agreements with outside parties for the lease of computer '
peripheral equipment. These agreements are for less than five years duration and represent financial
arrangements that, in essence, are considered installment purchases.
At June 30, 1977, the City owed the lessors approximately $205,000. Annual payments under the agreements ,
aggregate approximately $144,048, including interest. The agreements represent future general obligations
of the City and have been recorded as liabilities in the "General Long Term Debt Group of Accounts."
Note 3 Leases
The City has entered into two noncancellable lease and sublease agreements with the Huntington Beach
Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the Central
Library. Under both agreements, the City is to pay all taxes, insurance, administrative and maintenance '
costs. Title to the site improvements will pass to the City at the termination of the leases. The
City has determined that such leases are financing leases. Under the financing method a transaction is
regarded as an installment purchase, whereby an asset and related liability are recorded. Annual rental
paymemts are treated as reductions of the liability. Advance rentals from the Corporation received'by '
the City for lease of the site upon which the facilities are constructed are recorded as deferred rental
income in the Civic Improvement Fund and are being amortized over the terms of the sublease.
A description of each lease agreement is as follows: '
a) Civic Center
The City has entered into a noncancellable lease and sublease agreement with the Corporation for '
the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation
for $350,000 advance rental . The term of the lease is from January 15, 1976 to one week after
56
CITY OF H NTIN T BEACH
U G ON AC
NOTES TO FINANCIAL STATEMENTS, Continued
' Note 3, Leases , Continued
' the termination of the sublease.
The Corporation has subleased the civic center site and improvements to the City for $854,900 annual
base rental . The sublease commenced July 1 , 1974 for a term of 30 years or until all debts
' of the Corporation related to the civic center have been discharged, whichever comes first.
b) Central Library
The City has entered into a noncancellable lease and sublease agreement with the Corporation for the
Central Library. The City has leased the site to the Corporation for $300,000 advance rental . The
term of the lease is from September 1 , 1972 to one week after termination of the sublease.
' The Corporation has subleased the library site and improvements to the City for $399,000 annual
base rental . The sublease commenced February 15, 1975 for a term of 30 years or until all
debts of the Corporation related to the library have been discharged, whichever comes first.
Note 4 Commitments
' The City has entered into the following agreements:
a) In 1967, the City entered into an agreement for the lease of water storage capacity in the San
' Joaquin Reservoir for a term of 50 years at an annual rental of $100,000 for the first ten years,
$95,000 per year for the next ten years, $90,000 per year for the next seven years, and $10,000 per
year through the remaining term of the lease.
b) In 1969, the City entered into an agreement with the Huntington Beach Parking Authority for the lease
of certain parking facilities. The term of the lease is 24 years or until all of the Parking Authori
' ty's 1968 revenue bonds have been retired. Annual base rental payments under the lease agreement
are $170,050.
c) In June, 1974, the City leased a park site from the Ocean View School District for a term of five
' years. The City may cancel the agreement at the end of any budgetary year. If the City makes all
lease payments, title to the property will pass to the City. Annual rentals under the agreement
aggregate $64,875. Due to its insignificance, the City has elected not to capitalize this finan-
cing lease.
Minimum aggregate rental commitments under the above agreements are as follows:
57
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
Note 4, Commitments, Continued .
Year Amount '
1978 $ 329,875
1979 265,050 ,
1980. 265,050
1981 265,050
1982-1986 1 ,325,250
1987-1991 1 ,300,250 ,
1992-1996 550,100
Remainder $ 200,000
The City has entered into agreements with contractors which generally provide for possible reimburse-
ment to the contractors, of costs incurred in constructing water, sewer, and drainage facilities.
The extent of such reimbursement shall generally be limited to subsequent fees which are collected
from other users of the facilities which are not used to provide improvement to the facilities.
The City follows the practice of recognizing fees as revenue as they are collected and charges
subsequent payments to expenditures as they are made.
Note 5 Investments in Marketable Securities
A summary of the City's marketable securities at June 30, 1977 is as follows:
Approx.
Interest Principal Amortized Market
Description Rate Maturity Amount Cost Value
General Fund '
Huntington Beach Public Facilities
Corporation Leasehold Mortgage ,
Bonds , First and Second Issues 5.55% 1985-1998 $ 55,000 48.,636 48,636
City of Huntington Beach 1970 Park
Bonds 6.0 1980 25,000 24,509 24,509
Huntington Beach Parking Authority
1968 Parking Revenue Bonds 5-5.25 1984-1998 100,000 85,302 85,302
Total 180,000 158,447 158,447
Water Utility Fund
City of Huntington Beach 1963
Water Revenue Bond 3.4-3.5% 1983 330,000 196,305 196,305 ,
Total investments 58 $ 5109000 354,752 354,752
. i
CITY OF HUNTINGTON BEACH
1 NOTES TO FINANCIAL STATEMENTS, Continued
Note 6 0utstandin9 Indebtedness
' A summary of bonded indebtedness outstanding as of June 30, 1977 is as follows:
Bonds
' Bonds Matured Bonds
Date of Years of Rate of Amount of Outstanding During Outstanding
Issue Bonds Maturity Interest Orig. Issue July 1 , 1976 Year June 30, 1977
General Obligation Bonded j
Debt Group
1 1955 Water Bond 1955 1956-1962 5.50% S 230,000
1963-1976 3.00 49o,000 35,000 35,000 -0-
1977-1980 2.00 140,000 14o,000 -0- 140,000
1 Total 1955 Water Bond 860,000 175,000 35,000 140,000
1970 Park Bond 1970 1971-1972 5.00 225,000 -0-
1973-1974 5.25 255,000 -0-
1975-1977 5.50 440,000 155,000 155,000 -0-
1978-1983 5. 75 1 ,150,000 1 ,150,000 -0- 1 , 150,000
1 1984-1995 6.00 3,930,000 3,930,000 -0- 3,930,000
Total 1970 Park Bond 6,000.000 5,235,000 155,000 5,080,0oo
Total general obligation bonded debt $ 6,860,o00 5,410,000 190,000 5,220,000
i
1
59
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued ,
Note 6, Outstanding Indebtedness, Continued
Bonds '
Bonds Matured Bonds
Date of Years of Rate of Amount of Outstanding During Outstanding
Issue Bonds Maturity Interest Orig. Issue July 1 , 1976 Year June 30, 1977
Revenue Bonds
Water Utility Fund -
1963 Water Revenue Bond 1963 1963-1974 4. 75% $ 700,000 -0-
1975-1978 3.25 460,000 350,000 110,000 240,000
1979-1981 3.30 400,000 400,000 -0- 400,000 '
1982-1983 3.40 300,000 300,000 -0- 300,000
1984 1993 3.50 1 ,890,000 1 ,890,000 -0- 1 ,890,000
Total Revenue
Bonds (a) (b) 3,750,000 2,940,000 110,000 2,830,000
Total bonds payable $ 10,610,000 8,350,000 300,000 8,050,000
(a) The water revenue bonds do not represent a general liability of the City of Huntington Beach.
(b) At June 30, 1977, there were $1 ,950,000 authorized but unused 1963 water revenue bonds.
(c) Special assessment district bonds outstanding at June 30, 1977 totalled approximately $111 ,300. Such bonds do
not constitute an obligation of the City of Huntington -Beach.
Note 7 Meadowlark Golf Course Note Payable
In 1975, the City entered into an agreement to purchase the Meadowlark Golf Course from an independent i
party for a total purchase price of $3,200,000. Terms of the agreement called for an initial down payment
of $ 928,000 with the remaining $2,272,000 being in the form of long-term 7% note.
At June 30, 1977 the balance of the note was $1 ,946, 173. A schedule of yearly principal and interest pay-
ments is as follows:
Year Amount f
1978-2001 $ 150,000 ,
2002-2008 200,000
2009 S 115,703
60
' CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, Continued
Note 7, Meadowlark Golf Course Note Payable, Continued
' In connection with the above purchase, the City has leased the golf course operation to an outside party
for 34 years .at a minimum lease income of $150,000 annually through 2007 and a percentage of income based
upon gross revenues for the years 2008 and 2009.
' As part of the initial payment of $928,000, the County of Orange contributed $600,000 upon the City's
guarantee to use general City funds when and if necessary to ensure that Meadowlark Golf Course will be
maintained as open space.
The note payable is collateralized by future revenues and does not represent a general obligation of
the City.
Litigation
' At June 30, 1977, the City was defendant in several legal actions arising in the normal course of busi-
ness. The City is insured for public liability add property_ damage through various insurance policies
aggregating up to $10,000,000 coverage for each occurrence. In the opinion of the City Attorney, the
actual impact to the City upon resolution of the outstanding claims is insignificant.
61
CITY OF HUNTINGTON BEACH
STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES SCHEDULE I
July 1 , 1967 through June 30, 1977
Fines Use of From Charges for ,
Fiscal Other Licenses & & For- Money & Other Current Other
Year Taxes Permits feitures Property Agencies Services Revenue '
1967 S 988, 130 557,287 60,689 251 ,379 787,372 265,546 42,910
1968 15468,851 677,740 75, 194 249, 186 849,395 492,440 31 ,519
1969 1 ,938,841 742,853 65,007 295,5o4 1 ,053,917 816,856 40,607 '
1970 2,256,982 809,773 79, 169 541 ,283 1 , 101 ,752 774,850 159,339
1971 2,569,358 772,347 90, 197 510,099 1 ,332,432 348,834 51 ,129
1972 3, 115,977 1 ,269,922 1o9,851 596,857 1 ,373, 140 489,013 59,200
1973 3,800,728 1 ,997, 105 126,651 651 ,746 1 ,589,742 701 ,760 112, 172
1974 4,386,433 1 ,834,580 152,769 682,395 1 ,830,265 615,379 32,325
1975 5,723,995 2,236;292 125,698 767,233 1 ,774, 192 639,064 41 ,427
1976 5,722, 103 2,588,932 135,216 907,470 2,o4o,207 825.912 49,277 '
1977 $ 6,785,656 2,817,209 214,808 1 ,050,938 2,567,992 942,76o 48,714
i
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1
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62
CITY OF HUNTINGTON BEACH
' STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND SCHEDULE II
July 1 , 1967 through June 30, 1977
Fiscal Administrative Services Community Services Public Safety Services
Year Expenditures Encumbrances Expenditures Encumbrances Expenditures Encumbrances
1967 $ 1 , 125,620 5,463 2,054,221 67,720 2,480,294 17,741
1968 1 , 112,929 2,585 2,263,295 84,930 3,035,672 18, 155
' 1969 1 ,730,483 1 ,767 2,522, 111 89,304 3,820, 166 65, 171
1970 2,346,300 156,241 3,806, 162 206,532 4,728,247 198,844
1971 2,328,085 630 4,016,357 228,289 5,410,562 41 ,583
' 1972 1 ,676,714 12,781 4,736,550 105,091 6,966,277 84, 117
1973 1 ,330,792 16,811 5,978,271 1 ,244,452 8,489,612 153,610
1974 1 ,494,073 6,601. 6,601 ,075 36, 110 9,541 ,847 21 ,679
1975 2,802,270 14,501 62977,233 190,358 10,858,325 117,564
1976 3, 194,089 201 ,011 6653,560 250,073 12,233405 203783
1977 $ 2,664; 478 153,201 7:747,535 435,898 14,074:326 317:631
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CITY OF HUNTINGTON BEACH
STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND , CONTINUED SCHEDULE II , '
July 1 , 1967 through June 30, 1977 continued
Support Services Total General Fund
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Expenditures Encumbrances Expenditures Encumbrances
$ 221 ,554 415 5,881 ,689 91 ,339 '
293,751 1 ,198 6,705,-647 106,868
355,440 7, 139 8,428,200 163,381 ,
444,095 3,879 11 ,324,803 565,496
544,078 4,456 12,299,082 274,957
724,723 8,283 14, 104,264 210,272
720,979 13, 158 16,519,654 1 ,428,031 '
906,9oo 5,366 18,543,895 70,356
813,411 5,367. 21 ,451 ,239 327,790
1 ,247,564 7,616 23,328,618 662,483
$ 2,493,348 47,288 26,979,687 954,018
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CITY OF HUNTINGTON BEACH
' STATEMENT OF ASSESSED VALUE, DEBT LIMIT AND SCHEDULE III
RATIO OF GENERAL OBLIGATION BONDED DEBT .TO ASSESSED VALUE AND PER CAPITA
July 1 , 1967 through June 30, 1977
% Bonded
' Debt to
Fiscal Estimated Total Legal Debt Total General. Legal Assessed Bonded Debt
Year Population Assessed Value Limit (15%) Bonded Debt Debt Margin Value -Per Capita
' 1967 86,646 $ 220,691 ,540 33,058,731 49o,000 3.2,968,731 .22% 5.66
1968 94,377 273,265,300 40,989,795 455,006 40,534,795 J 7 4.82
1969 1o4, 124 284,033,290 42,604,994 420,000 42, 184,994 . 15 4.03
1970 115,960 293,272,790 43,990,919 6,385,000 37.,605,919 2. 18 55.06
1971 122,976 339,783,919 50,967,588 1 ,240,000 44,727,588 1 .84 50.74
1972 129,992 370,230,779 55,534,.617 6,o9o,000 49,444,617 1 .64 46.85
1973 143,325 4to,283,199 61 ,542,480 5,930,000 55,612:480 1 .45 41 .37
1974 143,636 442,211 ,658 66,340,749 5,765,000 66,5.75,749 1 .30 4o.14
1975 146,400 529,973.310 79,495,997 5,590,000 73,90.5,997 1 .05 38. 18
' 1976 151 ,500 . 580,623,450 87,093,518 5,41o,000 81 ,683,518 93 35.71
1977 157,800 $ 710,079,235 106,511 ,885 5,220,000 1011291 ,885- .74% 33.08
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CITY OF HUNTINGTON BEACH
--STATEMENT .OF TAX DELINQUENCIES AND IMPOUNDS SCHEDULE IV ,
July 1 , 1967 through June 30, 1977.
Secured Taxes Unsecured Taxes
Fiscal Tax Total Delinquency Total Delinquency
Year Rate Total Levy Collections Amount Percent . "Total Levy Collections Amount Percent Impounds '
1967 $ 1 .33 2,864,489 2,692, 137 58,931 2.06% 98,746 97,746 1 ,000 1 .01% 113,421,
1968 1 .33 3,471 ,790 3,314,279 51 ,781 1 .49 168,867 167,923 944 .56 105,730
1969 1 .45 3,898,311 3,763,889 41 ,777 1 .07 2049032 201 ,964 2,068 1 .0.1 92,645
1970 1 .45 4, 179,522 4,015,842 50,787 1 .22 252,136 250,534. 1-,602 .63 112,893
1971 1 .45 4,433,058 4,316,156 62,315 1 .41 291 ,311 288,965 2,346 . .86 54587
1972 1 .62 5,565,713 5,395,846 59,651 1 .67 432,025 401 ,297 4,628 1 .07 136:322 '
1973 1 .62 6,249,372 6,o94,.111 51 ,276 .82 397,216 391 ,186 6,030 1 .51 130,985 .
1974 1 .62 6,703,620 6,499,009. 66,654 .99 461 , 181 456,296 4,885 1 .o6 137,957
1975 1 .62 8,o99,022 7,844,596 74,987 .93 486,545 484,124 11 ,169 2.30. 179,439 ,
1976 1 .62 8,852,049 8,587,784 82,622 .93 545,344 516,539 28,798 4.36 186,648
1977 $ 1 .62 9,982,983 9,844,450 116,794 1 ..17% 549,954 538,370 . 6,791 1 .23% 328,451
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CITY OF HUNTINGTON BEACH
' STATEMENT OF FUTURE GENERAL OBLIGATION BONDED DEBT REQUIREMENTS BY YEAR SCHEDULE V
BASED ON BONDED DEBT
JUNE 30, 1977
Fiscal Year Principal Interest Total
' 1978 $ 200,000 304,375 504,375
1979 210,000 294,187 504, 187
1980 220,000 283,425 503,425
1981 230,000 272,088 502,088
' 1982 210,000 260,525 470,525
1983 220,000 248,450 468,450
1984 235,000 235,800 470,800
t 1985 245,000 221 ,700 466,700
1986 260,000 207,000 467,000
1987 280,000 191 ,400 471 ,400
1988 295,000 174,600 469,600
1989 310,000 156,900 466,900
1990 330,000 138,300 468,300
1991 350,000 118,500 468,500
1992 370,000 97,500 467,500
1993 395,000 75,300 470,300
1994 415,000 51 ,600 466,600
' 1995 445,000 26,700 471 ,700
Total $ 5,220,000 3,358,350 8,578,350
The 1955 Water General Obligation Bonds will be totally paid in August, 1980.
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STATEMENT OF FUTURE WATER REVENUE BOND REQUIREMENT BY YEAR SCHEDULE VI ,
BASED ON OUTSTANDING DEBT
JUNE 30, 1977
Fiscal Year Principal Interest Total ,
1978 $ 120,000 95,400 215,4o0
1979 120,000 91 ,500 211 ,500
1980 130,000 87,405 217,405
1981 130,000 83, 115 213,115 '
1982 140,000 78,660 218,660
1983 150,000 73,800 223,800
1984 150,000 68,700 218,700
1985 160,000 65,350 225,350
1986 160,000 59,350 219,350
1987 170,000 53,250 . 223,250
1988 18o,000 47,030 227,030 e
1989 180,000 4o,000 220,000
1990 190,000 33,075 223,075
1991 200,000 . - 26,250 226,250 e
1992 210,000 19,075 229,075
1993 220,000 11 ,550 231 ,550
1994 220,000 3,850 223,850
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Total $ 2,830,000 937,360 3,767,360
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' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION SCHEDULE VII
STATEMENT OF BONDED DEBT
YEAR ENDED JUNE 30, 1977
Date Years Bonds Bonds Bonds
' of of Rate of Original Outstanding Matured Outstanding
Description Bonds Maturity Interest Issue July 1 , 1976 During Year June 30, 1977
Civic Center Jan. , 1972 1975-1982 7.00% $ 2,010,000 1 ,600,000 230,000 1 ,370,000
' Leasehold Mort- 1983 5.70 330,000 330,000 -0- 330,000
gage Bonds, 1984-1996 5.50 7,040,000 7,040,000 -0- 7,040,000
First Issue 1997-1998 5.00 1 ,720,000 1 ,720,000 -0- 1 ,720,000
Total 11 ,100,000 10,690,000 230,000 10,460,000
' Central Library Feb. , 1972 1975-1983 7.00% 1 ,220,000 1 ,115,000 110,000 1 ,005,000
Leasehold Mort- 1984 5.90 180,00o 18o,000 -0- 180,000
gage Bonds, 1985 5.40 190,000 190,000 -0- 190,000
Second Issue 1986-1988 5.50 640,000 640,000 -0- 640,000
' 1989-1991 5.60 770,000 770,000 -0- 770,000
1992 5.70 290.000 290,000 -0- 290,000
1993-1995 5.75 965,000 965,000 -0- 965,000
1996-1997 5.00 745,000 745,000 -0- 745,000
Total 5,000,000 4,895,000 110,000 4,785,000
' Total bonded debt $16, loo,000 15,585,000 340,000 15,245,000
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HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION SCHEDULE VIII ,
STATFMENT OF FUTURE DEBT REQUIREMENTS BY YEAR
BASED ON BONDED DEBT
JUNE 30, 1977 '
Fiscal Civic Center Issue _ Library Issue Total
Year Principal Interest Total Principal Interest Total Principal Interest Total '
1978 $ 240,000 587,910 827,910 120,000 274,617 394,617 360,000 862,527 1 ,222,527
1979 260,000 571 , 110 831 , 110 130,000 265,867 395,867 390,000 836,977 1 ,226,97.7
1980 270,000 552,910 822,910 135,000 256,592 391 ,592 405,000 809,502 1 ,214,502 '
1981 290,000 534,010 824,010 14o,000 246,967 386,967 430,000 780,977 1 ,210,977
1982 310,000 513,710 823,710 150,000 236,817 386,817 460,000 750,527 1 ,210,527
1983 330,000 492,010 '822,010 16o,000 225,967 385,967 490,000 717,977 1 ,207,977 '
1984 360,000 473,200 833,200 170,000 214,417 384,417 530,000 687,617 1 ,217,617
1985 380,000 453,400 833,400 180,000 203, 157 383, 157 560,000 656,557 1 ,216,557
1986 400,000 432,500 832,500 190,000 192,717 382,717 590,000 625,217 1 ,215,217
1987 430,000 410,500 840,500 200,000 182,087 382,087 630,000 592,587 1 ,222587 '
1988 460,000 386,850 846,850 210,000 170,812 380,812 670,000 557,662 1 ,227:662
1989 490,000 361 ,550 851 ,550 230,000 158,712 388,712 720,000 520,262 1 ,240,262
1990 530,000 334,600 864,600 240,000 145,667 385,667 770,000 480,267 1 ,250,267-
1991 560,000 305,450 865,450 260,000 131 ,667 391 ,667 820,000 437, 117 1 ,257,117
1992 600,000 274,650 874,650 270,000 116,827. 386,827 870,000 391 ,477 1 ,261 ,477
1993 640,000 241 ,650 881 ,650 290,000 101 ,002 391 ,002 930,000 342,652 1 ,272,652 e
1994 680,000 206,450 886,450 305,000 83,968 388,968 985,000 290,418 1 ,275,418
1995 730,000 169,050 899,050 320,000 66,000 386,000 1 ,050,000 235,050 1 ,285,050 -
1996 780,000 128,900 908,900 340,000 47,025 387,025 1 ,120,000 175,925 1 ,295,925
1997 830,000 86,000 916,000 360,000 28,250 388,250 1 ,190,000 114,250 1 ,304,250 ,
1998 890,000 44,500 934,500 385,000 9,625 394,625 1 ,275,000 54,125 1 ,329,125
Total $10,460,000 7,560,910 18,020,910 4,785,000 3,358,760 8, 143.760 15,245,000 10,919,670 26,164,670 '
Principal Due: January September '
Interest Due: July and January -September and March
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PARKING AUTHORITY OF THE CITY SCHEDULE IX
OF HUNTINGTON BEACH
STATEMENT OF BONDED DEBT
JUNE 30., 1977
Date Years Bonds Bonds Bonds
of of Rate of Original Outstanding Matured Outstanding
Description Bonds Maturity Interest Issue July 1 , 1976 During Year June 30, 1977
1968 Parking Sept. , 1968 1970-1972 6.00% $ 150,000 . -0- -o-
Revenue Bonds 1973-1979 4. 75 470,000 290,000 65,000 225,000-
1980-1985 5.00 570,000 570,000 0- 570,000
1986-1993 5.25 1 , 110,000 1 , 110,000 -0- 1 , 110,000
Total $ 2,300,000 1 ,970,000 65,000 1 ,905,000
PARKING AUTHORITY OF THE CITY
OF HUNTINGTON BEACH
STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR
BASED ON BONDED DEBT
JUNE 30, 1977
Fiscal Year Principal Interest Total
1978 $ 70,000 95,800 165,800
1979 75,000 92,356 167,356
1980 80,000 88,675 168,675
1981 85,000 84,650 169,650
1982 85,000 80,400 165,400
1983 90,000 76,025 166,025
I 1984 95,000 71 ,400 166,400
1985 105,000 66,400 171 ,400
1986 110,000 61 ,025 171 ,025
' 1987 115,000 55,256 170,256
1988 120,000 49,088 169,088
1989 125,000 42,656 167,656
1990 135,000 35,831 170,831
1991 14o,000 28,613 168,613
1992 150,000 21 ,000 171 ,000
1993 16o,000 12,863 172,863
' 1994 165,000 4,331 169,331
Total 71 Si .905.000 966.369 2,871 .369
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� CITY OF HUNTINGTON BEACH
1 PUBLIC FACILITIES CORPORATION
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HUNTINGTON BEACH PUBLIC
' FACILITIES CORPORATION
FINANCIAL STATEMENTS
JUNE 30, 1977
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The Honorable Board of Directors
Huntington Beach Public Facilities Corporation
Huntington Beach, California
We have examined the combined balance sheet of the Huntington Beach Public Facilities Corporation as of June 30, ,
1977 and the related statements of earnings and retained earnings (accumulated deficit) and changes in cash position
for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accord-
ingly included such tests of the accounting records and such other auditing procedures as we considered necessary in
the circumstances.
in our opinion, the aforementioned financial statements present fairly the financial position of the Huntington Beach e
Public Facilities Corporation at June 30, 1977 and the results of its operations for the year then ended in conformity
with generally accepted accounting principles applied on a basis consistent with that of the preceding year.
(& VL' (%b A
November 11 , 1977 ,
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' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
COMBINED BALANCE SHEET EXHIBIT A
JUNE 30, 1977
Civic
Total Center Project Library Project
' Assets
Assets restricted as to use:
Cash held by trustee $ 4,690 143 4,547
' Time certificates of deposit 552,551 351 ,815 200,736
Temporary investments in U.S. government
securities, at cost (market: $1 ,526,358) 1 ,527,895 1 ,042,061 485,834
Accrued interest receivable 31 ,859 20,459 11 ,400
Inter project balances (1 ,383) 1 ,383
Total assets restricted as to use 2,116,995 1 ,413,095 703,900
Long term leases receivable less unearned
income of $13,039,201 (Note 3) 13,292,699 9,077,919 4,214,780
' Total assets
$15,409,694 10,491 ,014 4,918,680
' Liabilities and Retained Earnings (Accumulated Deficit)
Current liabilities :
Accrued interest payable $ 366,339 271 ,355 94,984
Matured interest payable 1 ,900 1 ,900 -
Accounts` payable 16,722 5,750 10,972
Current installment of bonds payable (Note 4) 360,000 240,000 120,000
Due to (from) the City of Huntington Beach _ 2,459 (2,244) 4,703
� . Total current liabilities 747,420 516,761 230.659
' Bonds payable, net of current installment (Note 4) 14,885,000 10,220,000 4,665,000
' Total liabilities 15,632,420 10,736,761 4,895,659
Retained earnings (accumulated deficit) (222,726) (245,747) 23,021
Liabilities and retained earnings
' (accumulated deficit) $ 15,409,694 10,491 ,014 4,918,680
' See accompanying notes to financial statements 73
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION '
COMBINED STATEMENT OF EARNINGS AND RETAINED EARNINGS (ACCUMULATED DEFICIT)
YEAR ENDED JUNE 30, 1977 -EXHIBIT B
Civic Library ,
Combined Center Project Project
Operating revenue: '
Lease income (Note 3) $ 1 ,253,900 854,900 399,000
Operating expenses : ,
Amortization of lease receivable 234,892 160,922 73,970
Other 42,994 19,439 23,555
Net operating income 976,014 674,539 301 ,475 '
Nonoperating revenue:
Interest earned 147,631 100,312 47,319
Total operating and nonoperating income 1 , 123,645 774,851 348,794
Nonoperating expenses: ,
Interest expense 886,677 604,010 282,667
Net earnings 236,968 170,841 66, 127
Accumulated deficit at July 1 , 1976 (459,694) (416,588) (43, 106) ,
Retained earnings (accumulated deficit) at June 30,
1977 $ (222,726) (245,747) 23,021 ,
See accompanying notes to financial statements. ,
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HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
COMBINED STATEMENT OF CHANGES IN CASH POSITION EXHIBIT C
YEAR ENDED JUNE 30, 1977
Civic Library
Combined -Center Project Project
' Source of funds:
Funds provided from operations :
Net earnings $ 236,968 170,841 66,127
Decrease in long term lease receivable 234,892 16o,922 73,970
' Decrease in time certificates of deposit 140,095 91 ,506 48,589
Increase (decrease) in inter-project balances 1 ,383 (1 ,383)
Increase in amount due to City of Huntington Beach 6,081 816 5,265
' 618-9036 425,468 192,568
Use of funds:
Redemption of bonds payable 340,000 230,000 110,000
' Increase in temporary investments in U.S. government
securities 265,796 187,715 78,021
Increase in accrued interest receivable 9,200 9,200 -
' 614,996 426,975 188,021
Net increase (decrease) in cash 3,040 (1 ,507) 4,547
' Cash balance at July 1 , 1976 1 ,650 1 ,650 -
' Cash balance at June 30, 1977 $ 4,690 143 4,547
See accompanying notes to financial statements.
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HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION ,
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1977 '
I . Summary of Significant Accounting Policies
The following is a summary of significant accounting policies used by the Huntington Beach Public Facilities '
Corporation (Corporation) .
Basis of Accounting '
The accompanying combined financial statements of the Corporation have been prepared using the accrual basis
of accounting. ,
Investments
Investments are stated at cost. Such investments generally consist of Federal Government backed securities '
and bank time certificates of deposit. Investments of the Corporation, other than bank time certificates
of deposit, are not adjusted for amortization of purchase premium or discount, which has been determined to
be immaterial at June 30, 1977. '
Funds
Under the provisionsof the bond indenture agreements, the Corporation is required to maintain separate
accountability for various types of funds the Corporation receives. A description of these funds, which
have been combined for financial statement presentation, is as follows: ,
Account Source Use
Reserve Fund Bond proceeds and rental revenue fund Bond principal and interest ,
Construction Fund Bond proceeds Cost of project
Interest During Construction Bond proceeds First twenty-six months ' interest
Fund on bonds
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' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO FINANCIAL STATEMENTS, CONTINUED
I . Summary of Significant Accounting Policies, Continued
Account Source Use
Rental Revenue Fund City of Huntington Beach rent payments Required transfers to various funds
and/or other specified purposes
Debt Service Fund Transfers from revenue fund Bond principal and interest
Administrative Expenses Fund Transfers from revenue fund Corporation operating expenses
' Bond Redemption Fund Transfers from revenue fund Call and redemption of bonds,
changes, alterations or additions
to the project, or reimbursement
of any base rent or additional rent
' previously paid by the City of
Huntington Beach
Upon completion of construction, separate rental revenue funds were established to account for all lease and
other revenues from the City of Huntington Beach for the Civic Center and Library. The separate construction
funds for the Civic Center and Library projects have been left open to pay for improvements and modifications
to the project structures as approved by .the Directors of the Corporation.
Money in the respective rental revenue funds is disbursed as follows: First, to the debt service funds
in amounts sufficient to pay one succeeding principal and two succeeding interest installments; Second,
amounts , necessary to restore the respective reserve funds to amounts equal to one year's lease revenue;
Third, administrative expense funds equal to the' budgeted administrative expenses of the Corporation;
Fourth, all remaining amounts to the bond redemption funds.
Money accounted for in the bond redemption fund is. to be used to correct deficiencies, as may arise, in
the debt service funds, reserve funds or administrative expense funds, respectively. Money remaining After
the minimum requirements of the bond agreements have been met may be used to purchase or redeem outstanding
bonds to make improvements or modifications to the project structures or to reimburse the City of Huntington
Beach for rents paid to the Corporation.
2. Organization
' The Huntington Beach Public Facilities Corporation was incorporated under the laws of the State of California
as a non-profit corporation on November 25, 1970. The Corporation was formed for the primary purpose of
' financing and constructing a civic center complex and central library for the City of Huntington Beach.
The constructed civic facilities have been leased to the City of Huntington Beach under long term lease
agreements. (Note 3) .
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HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION '
NOTES TO FINANCIAL STATEMENTS, CONTINUED
3. Leases
The Corporation has entered into two lease and sublease agreements with the City of Huntington Beach.
The terms of the leases are summarized as follows:
a) Civic Center lease - The Corporation has entered into a lease and sublease agreement with the City
of Huntington Beach for the Huntington Beach Civic Center. The site upon which the Civic Center
is constructed is owned by the City and has been leased to the Corporation for an advance rental '
of $350,000. The term of the lease is from January 15, 1972 to one week after the termination
of the sublease described in the next paragraph.
The Corporation has subleased the Civic Center site and civic buildings constructed thereon, to '
the City for an annual rental of $854,900. This sublease commenced July 1 , 1974 and extends for
a term of the earlier of: (a) thirty (30) years or (b) until the bonded indebtedness incurred
by the Corporation to construct the Civic Center has been paid. '
b) Central Library lease - The Corporation has entered into a lease and sublease agreement with the
City of Huntington Beach for the Central Library. The site upon which the Central Library is '
constructed is owned by the City and has been leased to the Corporation for an advance rental of
$300,000. The term of the lease is from September 1 , 1972 to one week after the termination of
the sublease described in the next paragraph.
The Corporation has subleased the Central Library site and building constructed thereon to the City
for an annual rental of $399,000. This sublease commenced February 15, 1975 and extends for a term
of: (a) thirty (30) years or (b) until the bonded indebtedness incurred by the Corporation to ,
construct the Central Library has been paid.
Under both agreements, the City is required to pay all taxes, insurance, administrative and maintenance
costs associated with the facilities under lease. At the conclusion of the lease agreements title to the '
leased facilities will be transferred to the City at no additional cost. Proper accounting treatment
requires that such lease be treated as a financing lease. Under the financing method, the excess of aggre-
gate rentals over the cost of the leased property is generally designed to compensate the lessor for the ,
use of funds invested. Accordingly, at June 30, 1977, leases receivable from the City of Huntington Beach
totaling $13,292,699 net of unearned interest, for the Civic Center and Central Library facilities have been
reflected in the financial statements. ,
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' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO FINANCIAL STATEMENTS, CONTINUED
4.. Outstanding Indebtedness
' A summary of the Corporation's bonded indebtedness as of June 30, 1977 is as follows:
Maturities
' Date Interest Original Outstanding Annual Period
Bond issue issue rate issue June 30, 1977 requirements covered
' Civic Center: -
Leasehold Varying amounts
Mortgage Bonds, January 5.00 from $200,000 to
First Issue (a) 1972 7.00% $ 11 ,100,000 $ 10,460,000 $890,000 1975-1998
Central Library:
' Leasehold Varying amounts .
Mortgage Bonds, February 5.00 - from $105,000 to
Second Issue (b) 1972 7.00% 5,000,000 4,785,000 $385,000 1975-1997
$ 16,100,000 $ 15,245,000
a) The $11 ,100,000 principal amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972
and have been issued as coupon bonds in $5,000 denominations. The Bonds, which are serial in nature, mature
annually on January 15 of each year. Interest is payable semiannually on January 15 and July 15 of each year.
Bonds maturing on or prior to January 15, 1982 are generally not subject to call and redemption prior to their
final maturity date. Bonds maturing on or after January 15, 1983 (a principal amount of $9,090,000) are
subject to call and redemption at the option of the Corporation, in total or in part, on January 15, 1982
or on any interest payment date thereafter. Call price of the bonds shall be an amount equal to the prin-
cipal amount plus a premium equal to 1/4 of 1 percent of the principal amount redeemed, plus 1/4 of 1 percent
for each year or fraction of .a year from the redemption date to the maturity date of the bonds. In no
event shall the premium exceed 4 1/2 percent.
b) The $5,000,000 of principal amount of Leasehold Mortgage Bonds, Second Issue (Bonds) are dated September 1 , 1972
and have been issued as coupon bonds in $5,000 denominations. The Bonds, .which are serial in nature, mature
' annually on September 1 of each year. Interest is payable semiannually on March 1 and September 1 of each year.
Bonds maturing on or prior to September 1 , 1982 are generally not subject to call and redemption prior to
their fixed maturity date. Bonds maturing on or after September 1 , 1983 (a principal amount of $3,950,000)
are subject to call and redemption at the option of the Corporation, in total or in part, on September 1 , 1982
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HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO FINANCIAL STATEMENTS, CONTINUED ,
4. Outstanding Indebtedness, Continued ,
or on any interest payment date thereafter. Call price of the Bonds shall be an amount equal to the prin-
cipal amount redeemed plus a premium equal to 1/4 of 1 percent of the principal amount redeemed, plus
1/4 of 1 percent for each year or fraction of a year from the redemption date to the maturity date of the '
Bonds. In no event shall the premium exceed 4 percent.
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� CITY OF HUNTINGTON BEACH
1 PARKING AUTHORITY.
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' PARKING AUTHORITY OF THE
CITY OF HUNTINGTON BEACH
FINANCIAL STATEMENTS
' JUNE 30, 1977
(With Accountants'Report Thereon)
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CERTIFIED PUBLIC ACCOUNTANTS
660 NEWPORT CENTER DRIVE
NEWPORT BEACH,CALIFORNIA 92660
The Honorable Members of the Parking Y Authorit '
City of Huntington Beach
Huntington Beach, California i
We have examined the combined balance sheet of the Parking Authority of the City of Huntington Beach as of ,
June 30, 1977 and the related statements of earnings and retained earnings and changes in financial position
for the year then ended. Our examination was made in accordance with generally accepted auditing standards ,
and accordingly included such tests of the accounting records and such other auditing procedures as we con-
sidered necessary in the circumstances.
In our opinion, the aforementioned financial statements present fairly the financial position of the Parking
Authority of the City of Huntington Beach at June 30, 1977 and the results of its operations for the year then
ended in conformity with generally accepted accounting principles applied on a basis consistent with that of
the preceding year.
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November 11 , 1977
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PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
BALANCE SHEET EXHIBIT A
JUNE 30, 1977
Assets :
Current assets :
Cash and term deposits $ 131 ,357
Receivables:
Due from general fund 1 ,448
Accrued interest receivable 28,474
Total receivables 29,922
Total current assets 161 ,279
' Assets restricted as to use - investments, at cost
which approximates market value (Note 4) 693,417
' Fixed assets, at cost:
Land 371 ,065
Improvements $ 1 ,694,089
' Less: allowance for depreciation 532,533 1 , 161 ,556
Total fixed assets 1 ,532,621
Total assets $ 2,387,317
' Liabilities and Retained Earnings:
Current liabilities:
Accrued interest payable $ 32,309
Current installment of bonds payable (Note 4) 70,000
Total current liabilities 102,309
Deferred lease income (Note 3) 170,050
Bonds payable, net of current installment (Note 4) 1 ,835,000
Total liabilities 2, 107,359
' Retained earnings 279,958
Total liabilities and retained earnings $ 2,387,317
See accompanying notes to financial statements.
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PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
STATEMENT OF EARNINGS AND RETAINED EARNINGS '
YEAR ENDED JUNE 30, 1977 EXHIBIT_ B
Operating revenue: ,
Lease income (Note 2) $ 170,050
Operating expenses:
Depreciation 72,684
Net operating income 97,366
Nonoperating revenue:
Interest earned 50, 197
Total operating and nonoperating income 147,563 '
Nonoperating expenses : '
Interest expense 97,983
Net earnings 49,580 '
Retained earnings, July 1 , 1976 230,378
Retained earnings , June 30, 1977 $ 279,958
See accompanying notes to financial statements.
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PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED JUNE 30, 1977 EXHIBIT C
! Sources of working capital :
Current operations :
' Net earnings $ 49,580
Charges against earnings not involving working capital - depreciation 72,684
Total working capital provided 122,264
Disposition of working capital :
Retirement of bonds 65,000
Increase in restricted assets 38,814
Additions to parking improvements 23,006
Total 126,820
' Decrease in working capital $ 4,556
' Changes in components of working capital were as follows:
Increase (decrease) in current assets :
' Cash and term deposits $ (15,722)
Receivables 10,142
Total (5,580)
Decrease in current liabilities - accrued interest payable 1 ,024
Decrease in working capital $ 4,556
See accompanying notes to financial statements.
84
PARKING AUTHORITY OF THE CITY
OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1977
(1 ) Summary of Significant Accounting Policies '
Basis of Accounting
The accompanying combined financial statements of the Parking Authority of the City of Huntington Beach
(Parking Authority) have been prepared using the accrual basis of accounting.
Fixed Assets and Depreciation '
Fixed assets are recorded at cost. Land improvements are depreciated using the straight line method over
the term of the lease (26 years) with the City of Huntington Beach (City) . ,
Investments
Investments are stated at cost. Such investments consist of Federal government backed securities and
bank time certificates of deposit. The investments of the Parking Authority, other than time certifi-
cates of deposit, are not adjusted for amortization of purchase premium or discount, which has been
determined to be immaterial at June 30, 1977. (See Note 4)
(2) Operations
The Parking Authority is an independent public agency established in 1967 under provisions of the Parking '
Law of 1949. The primary purpose of the Parking Authority is to provide off-street parking facilities
for the City of Huntington Beach. The Parking Authority leases its parking facilities to the City under
a lease agreement which requires minimum annual rental payments of $170,050 through July 1 , 1993.
The Parking Authority obtained the funds to acquire and construct these faciliites through the issuance of
$2,300,000 of revenue bonds which are secured by the rental payments received from the City. The rental is
payable annually on July 1 . Rental income is to be used for bond principal and interest requirements.
Excess funds , if any, including interest earned thereon, which are not required to meet scheduled principal '
and interest payments and which are not required by the bond indenture agreement to be established as a
reserve may be: (1 ) used to finance additions and improvements to the parking facility, or (2) applied as
a credit against annual rental payments from the City.
85
' PARKING AUTHORITY OF THE CITY
OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, CONTINUED
' (2) Operations, Continued
Under the terms of the lease agreement dated September 30, 1968 between the Parking Authority and the City
the lease is to terminate after all of the 1968 revenue bonds are retired or provision for retirement has
' been made. All costs of maintenance and operation have been assumed by the City. The City must also pay,
in the form of additional rent, all taxes , assessments, insurance, fees and other expenses of the Parking
Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility.
' (3) Deferred Lease Income
' Prior to June 30, 1977, the City prepaid the 1978 fiscal year annual rental parking facility rental
aggregating $170,050. Such rental , normally due on July 1 , has been treated as deferred lease income
for financial statement purposes.
' (4) Bonded Debt
A summary of the Parking Authority bonded debt is as follows :
Bonds
Amount of Bonds Matured Bonds
Date Years of Rate of Original Outstanding During Outstanding
Description of Issue Maturity Interest Issue duly 1 , 1976 Year 6/30/77
1.968 Parking September, 1970-72 6.o0% $ 150,000
' Revenue Bonds 1968 1973-79 4.75 470,000 290,000 65,000 225,000
1980-85 5.00 570,000 570,000 570,000
1986-93 5.25 1 ,110,000 1 ,110,000 - 1 ,110,000
' $2,300,000 1 ,970,000 65 Ooo 1 ,905,000
' 86
PARKING AUTHORITY OF THE CITY '
OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, CONTINUED '
(4) Bonded Debt, Continued '
Interest is payable semiannually each year on March 1 and September 1 . Provisions of the bond agreement
provide for the establishment of three special funds as follows: '
a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking
facility are placed in the bond service fund. Money in this fund is used to pay bond principal
and interest. Amounts received in excess of the amount required to meet principal and interest '
requirements may be transferred to the reserve fund or working capital fund. Under certain
circumstances such excess funds may be used to finance additions and improvements or reduce
the annual rental due from the City. '
b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside
to be used to pay principal and interest coming due in the event there is insufficient money in ,
the bond service fund and may be applied to the final payments of principal and interest.
c) Working Capital Fund - After provision has been made for payment of bond principal and interest
and an appropriate reserve fund balance has been established, excess money, if any, remaining in
the bond service fund may be transferred to the working capital fund to be used to pay the
administrative expenses of the Parking Authority and maintain the working capital fund's cash
at a balance of at least $1 ,500. '
At June 30, 1977, the Parking Authority maintained the following investments pursuant to the terms of
the bond agreement (See Note 1 ) : '
Bond Service Fund . $ 602,629
Reserve Fund. 90,788
$ 693,417
87
PARKING AUTHORITY OF THE CITY
' OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, CONTINUED
Bonds maturing on and after September 1 , 1980 are subject to call and redemption. at the option of the
Parking Authority as a whole or in part, in inverse order of maturity and by bond number within a
' single maturity on September 1 , 1979 and on any interest payment date thereafter.
The bonds are redeemable at par value plus accrued interest and a premium equal to 1/4 of l percent for
' each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3 1/2
percent.
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