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HomeMy WebLinkAboutFY 1978/1979 City of Huntington Beach Annual Financial Repor V\V cl r i CITY OF HUNTINGTON BEACH 1 STATE OF CALIFORNIA ' • 310, ANNUAL �o •1 & /3o1,g � 5 FINANCIAL HUNTINGTON BEACH 1 REPORT FOR THE YEAR ENDED JUNE 30, 1979 1 1 1 CITY OF H TON BEACH ' UNTI NG COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS ' JUNE 30, 1979 Liabilities , Reserves, Fund Balances Special Internal Debt and Retained Earnings General Revenue Service Service ' Liabilities: Cash overdraft 922,491 19,348 Accounts payable and accrued expenses $ 1 ,523, 147 335,150 12,911 - Unearned revenue 15,568 - - - ' Liability insurance claims payable (Note 9) - - 552,280 _ Workmen 's compensation claims payable (Note 9) - - 570,928 - Customer deposits 205,354 1 ,548 - - ' Due to other funds 25,940 573,714 3,458 - Accrued interest payable - - - - Deferred revenue - 14,960 Current installment of bonds/notes payable (Notes 2,6,7) - - - - Matured interest payable - - - - Deferred rental income (Note 3) 588,354 - - - Bonds and interest payable - - - - , Obligation under financing leases - - - - Bonds , net of current installment (Note 6) - - - - Notes payable, net of current installment (Notes 2,7) - - - - ' Total liabilities 2,358,363 1 ,847,863_ 1 , 139,577 19,348 Encumbrances outstanding 1 , 128, 161 2,586,855 - - Reserves , contributions , fund balances & retained earnings : ' Reserves for: Revenue bond retirement - - - - Other 410,000 78,226 - Total reserves 41o,000 7 ,226 - - Contributions : Contributions in aid of construction - — - - - Contributions from general fund - - - - Total contributions - Fund balances : Unappropriated fund balance (Note 10) 2 ,091 ,495 8,572 ,681 52,280 Appropriated fund balance 1 ,767,533 134,945 Total fund balances 3, 59 ,02 8,707,626 - 52,28 Reserve for investments in general fixed assets _ - - Re>ained earnings - - 2,214,310 - Commitments and contingencies (Notes 4,8) - - - - $ 7,755,552 13,220,570_ 3,353,887 71 ,628 ' See accompanying notes to financial statements. --- — 8 ' ' CITY OF HUNTINGTON BEACH COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS EXHIBIT A, Continued ' JUNE 30, 1979 General General Capital Trust Long Term Fixed Projects Enterprise and Agency Debt Assets 904,940 - - - ' = 245,239 220,940 = _ 61 ,250 145,763 _ - - 20,062 6,444 - ' - - 12,795,831 - 2,030,000 _ 4,810,000 _ 1 ,901 ,910 _ - - 5,309, 164 227,384 17,605,831 - 2,662 - - - - 194,924 - - 15, 121 ,693 - - - ' _ 1,359,932 647,302 _ 1 ,094,901 -647.302 - 1 ,094,36T- - - - - - 31 ,326,55E _ 8,454,858 ' _649„964 30,440,571 1 ,322,285 17,605,831 31 ,326,556 9 U CITY OF H NTINGTON BEACH ' GENERAL FUND EXHIBIT B ' BALANCE SHEET JUNE 30, 1979 Assets Ca .'- and term deposits $ 6,418,035 , Iccou; zs receivable - net 35,325 ProGer=; taxes receivable - net 228,635 Inte-=s: receivable 138,501 , 1 - ✓e t-�r:ts at cost which approximates market 189,245 Due from other funds 486, 150 Due from other governmental units 137,446 , Prepaid expenses 99,551 Restricted assets - cash 22,664 Total assets $ 7,755,552 ' Liabilities , Reserves and Fund Balance Liabilities : ' Accounts payable and accrued expenses $ 1 ,523, 147 Unearned revenue 15,568 Custoner deposits 205,354 ' Deferred rental income 588,354 Due to other funds 25,940 Total liabilities 2,358,363 ' Encumbrances outstanding 1 , 128, 161 Reserve for amounts due beyond one year 41o,000 ' Fund Balance: Unappropriated fund balance 2,091 ,495 Appropriated fund balance 1 ,767,533 e Total fund balance 3,859,028 Total liabilities , reserves and fund balance $ 7,755,552 ' See accompanying notes to financial statements . ' 10 CITY OF-HUN-TINGTON BEACH- ' GENERAL FUND EXHIBIT C STATEMENT OF CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1979 Fund balance, July 1 , 1978 $ 4, 109,212 ' Add: Revenue and transfers 32,330,003 Cancellation of 1978 outstanding encumbrances 854,144 Transfer to close Civic Improvement Fund 592,074 Total additions 33,776,221 Deduct: Expenditures and encumbrances 33,594,546 Amount reclassified to reserve 410,000 ' Transfer to Grant Fund 21 ,859 Total deductions 34,0261405 ' Fund balance, June 30, 1979 $ 3,859,028 1 See accompanying notes to financial statements. 1 11 1 CITY OF HUNTINGTON BEACH GENERAL FUND EXHIBIT D ' STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 1979 Excess ' of Actual Percentage Revenue Over of Original Revised Actual (Under) Estimate ' Budget Change Budget Revenue Estimate Realized General Property Taxes Current taxes - secured $ 5,777,240 5,777,240 5,951 ,007 173,767 103% Current taxes - unsecured 678,483 678,483 675,892 (2,591 ) 100 ' Interest and penalties 23,000 23,000 38,208 15,208 166 Aircraft 5,569 5,569 5,729 160 103 Other 213 213 - ' Total general property taxes 6,484,292 - 6,484,292 6,67.1 ,049 186,757 103 Other Local Taxes t Sales and use tax 7,200,000 7,200,000 7,251 ,302 51 ,302 101 Franchises - utility 530,000 530,000 576,294 46,294 109 Franchises - pipeline 22,000 22,000 27,243 5,243 124 , In lieu - water utility 749,250 749,250 748,880 (370) 100 Occupancy tax 85,000 85,000 98, 156 13, 156 115 Cigarette tax 590,000 590,000 534,407 (55,593) 91 ' Utility tax - water 200,000 200,000 227,421 27,421 114 Utility tax - gas 500,000 500,000 640,305 140,305 128 Utility tax - telephone 1 ,000,000 1 ,000,000 1 ,047,370 47,370 105 Utility tax - electricity 1 ,580,000 1 ,58o,000 1 ,673,983 93,983 106 ' Other 230 230 - Total other local taxes 9, 176,250 3,280,000 12,456,250 12,825,591 369,341 103 e Licenses and Permits License - business 610,000 61o,000 643,801 33,801 106 ' License - oil well production 1 ,062,500 1 ,062,500 969,243 (93,257) 91 License bicycle 10,000 10,000 13,932 3,932 139 License - oil inspection 76,000 76,000 107,250 31 ,250. 141 License - animal 150,000 150,000 120,739 (29,261) 80 ' Permits - building 425,000 425,000 256,395 (168,605) 60 Permits - plumbing 90,000 90,000 76,435 (13,565) 85 Permits - electrical 130,000 130,000 124,153 (5,847) 96 ' Permits - heating $ 45,000 45,000 45,079 79 100% 12 CITY OF HUNTINGTON BEACH ' GENERAL FUND EXHIBIT D, Continued STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 1979 Excess ' of Actual Percentage Revenue Over of Original Revised Actual (Under) Estimate ' Budget Change Budget Revenue Estimate Realized Licenses and Permits, Continued ' Permits - waste water $ 22,000 22,000 13,004 (8,996) 59% Permits - street and curb cut 46,000 40,000 50, 132 10, 132 125 Permits - other 27,000 27,000 65,377 38,377 242 ' Total licenses and permits 2,687,500 2,687,500 2,485,540 (201 ,960) 92 Fines and Forfeitures ' Court fines 225,000 225,000 184,837 (40,163) 82 Library fines and fees 32,000 32,000 39, 189 7,189 122 ' Total fines and forfeitures 257,000 257,000 224,026 (32,974) 87 Use of Money and Property Interest income 325,000 50,000 375,000 755,723 380,723 202 ' Lease - Huntington Driftwood 96,000 96,000 32,000 (64,000) 33 Rentals - land 50,000 50,000 53,244 3,244 106 Rentals - park buildings 25,000 25,000 31 ,036 6,036 124 ' Rentals - pier and concessions 45,000 45,000 50,088 5,088 111 Rentals - beach and concessions 160,000 160,000 177,159 17,159 ill City oil wells 70,000 70,000 79,721 9,721 114 Royalties and easements 90,000 90,000 79,440 (10,560) 88 ' Royalties - park 900 ' 900 364 (536) 40 Parking tots 490,000 490,000 488,735 (1 ,265) 100 Sunset Vista camper facility 55,000 55,000 52,219 (2,781 ) 95 ' Showmobile rental 1 ,000 1 ,000 1 ,050 50 105 Community gardens 200 200 180 (20) 90 Central Park concessions 15,000 15,000 6,709 (8,291 ) 45 ' Other 1 ,500 1 ,500 6,447 4,947 430 Total use of money and $ 1 ,424,600 50,000 1 ,474,600 1 ,814,115 339,515 123% property 13 � f1f1f1Ufi � � F111fii101fiL FiEPOFiT � o, the 1 CITY OF HUNTINGTON BEACH � for the � FISCAL YEAR ENDED JUNE 3071979 1 DEPARTMENT OF FINANCE �,.� Frank B. Arguello, Director Daniel T. Villelle, Asst. Director ' H CITY OF HUNTINGTON BEAC ' OFFICE OF DIRECTOR OF FINANCE FRANK B. ARGUELLO, DIRECTOR Mr. Floyd G. Belsito September 28, 1979 ' City Administrator City of Huntington Beach, California ' Dear Mr, Belsito: Submitted herewith is the Finance Department's annual report containing the City's financial statements for the fiscal year ended June 30, 1979. The comprehensive report encompasses all funds, reflects the results of all ' financial transactions , and represents the culmination of accounting processes performed during the fiscal year. General Fund ' Revenues and transfers from Other Funds for general fund purposes totalled $32 ,330,003 in FY-1979, an increase of $ 387,232 , or 1 .2 when compared to FY-1978. The greatest impact on City revenue, of course, was brought about by the passage of Proposition 13. The decrease in property tax revenue of $5,820,885 was softened by the City's receipt of $2, 133,703 in State surplus aid funds. The revenue from various sources and the changes as compared to FY-1978 are as follows . ' Percent Change from FY-1978 Source Amount of Total Amount Percent Property Taxes $ 6,671 ,049 20.6% $ (5,820,885) (46.6%) ' Other Local Taxes 12,825,591 39.7 4,872,543 61 .3 Licenses and Permits 2,485,540 7.7 (167,589) (6.3) Fines and Forfeitures 224,026 .7 7,664 3.5 ' From Use of Money and Property 1 ,814, 115 5.6 398,903 28.2 From Other Agencies 5,502,464 17.0 2,426,214 78.9 From Charges for Current Services 953,790 3.0 15,608 1 .7 Other Revenue 84,458 .3 (15, 142) �42.9) 15.2) Transfers from Other Funds 1 ,768,970 5.4 0 ,330,084) Total $ 32,330,003 100.00 $ 387,232 1 .2 1 CITY OF HUNTINGTON BEACH Gross expenditures and encumbrances for general fund purposes totalled $33,594,546 in FY-1979 - an increase of $3,663,072 or 12.2 over FY-1978. Expenditures and encumbrances are indicated by function as follows. The change ' in relation to FY-1978 expenditure and encumbrance activity is also demonstrated. Percent Change from FY-1978 ' Function Amount of Total Amount Percent Administrative Services S 5,800,398 17.3% $ 2,003,215 52.8% ' Community Services 8,384,971 25.0 (735,765) (8.7) Public Safety Services 17,017,425 50.6 1 ,840,604 12. 1 Support Services 2,391 ,752 7. 1 555,018 30.2 Total S 33,594,546 100.0% S 3,663,072 12.2% ' The unappropriated general fund balance decreased from S2,258,779 in FY-1978 to $2,091 ,495 in FY-1979, a decrease ' of $167,779, or 7.4 . The City continues to fund accrued employee vacation and sick leave in the amount of 51 ,715,887. Assessed valuation decreased b $22 538 125 to $831 783 620 in FY-1979 - a 2.6% decrease. In FY-1980 it is ' anticipated the assessed valuation will increase to 5983,927,670, an increase of $152, 144,050, or 18.3%. A comparison of assessed valuation over the last three years with anticipated FY-1980 assessed valuation is as ' follows. Assessed Change from Prior Year ' Fiscal Year Valuation Amount Percent 1980 $ 983,927,670 152, 144,050 18. 3% 1979 831 , 783,620 (22,538, 125) (2.6) 1978 854,321 ,745 144,242,510 20.3 1977 710,079,235 129,455,875 22.3 Outstanding general obligation bonds as of June 30, 1979 totalled $4,810,000, comprised of $70,000 outstanding ' on the 1955 Water Bond issue and $4,740,000 outstanding on the 1970 Park Bond issue. There is, as of June 30, 1979, $2, 160,000 outstanding on the 1963 Water Revenue Bond but this does not represent a general obligation ' of the City of Huntington Beach. The tax rate necessary to provide funds for voter approved indebtedness totalled $. 1972 per S100 of assessed valuation in FY-1979 and is anticipated to be the same rate per $100 of assessed valuation in FY-1980. This is in addition to the City's share of the overall $4.00 per $100 of assessed 2 CITY-OF HUNTINGTON BEACH ' valuation permitted as a result of the passage and implementation of Proposition 13. Comparative data for the City's Water Utility operation for the past two years is as follows . ' 1979 1978 Total operating revenue $ 5, 168,003 $ 4,759,570 Net income 1 , 146,467 905,882 A supplemental information section has been included in this report which contains comprehensive statistical data. Such data is presented so as to relate physical , economic, social and political characteristics of our city which should give the readers of this report a more broad and more complete understanding of the City and its financial operations . In accordance with Section 616 of the City Charter, the City Council shall employ at the beginning of each fiscal year an independent certified public accountant who should examine all City accounts and the results reported to the City Council . The opinion of Peat , Marwick, Mitchell & Co. , Certified Public Accountants, is included in this report. wish to express my appreciation to the members of the Finance Department without whose dedicated efforts this report would not be possible. In addition, I would express my 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, -�Aa,A 9. Frank B. Ar�ello Director of Finance 3 CITY OF HUNTINGTON BEACH ELECTED OFFICIALS ' City Council Donald A. MacAllister Mayor , Robert P. Mandic, Jr. Mayor Pro Tem Ruth S. Bailey Councilperson Ruth E. Finley Councilperson ' Ronald R. Pattinson Councilperson John A. Thomas Councilperson Clancy F. Yoder Councilperson ' Other Gail Hutton City Attorney ' Warren G. Hall City Treasurer Alicia M. Wentworth City Clerk ' Departments of the City ' Floyd G. Belsito City Administrator Frank B. Arguello Director of Finance James Palin Development Services Director ' Michael Zambory Director of Public Works Walter W. Johnson Library Director Vincent G. Moorhouse Community Services Director ' Raymond C. Picard Fire Chief Earle W. Robitaille Police Chief Edward Thompson Personnel Director e 4 PEAT. MARIVICK. MITCHELL & CO. CERTIFIED PUBLIC ACCOUNTA_N""TS ' 660 NEW PORT CENTER DRIVE NEW PORT BEACH,CALIFORNIA 92660 The Honorable City Council of the City of Huntington Beach We have examined the financial statements of the various funds and account groups of the City of Huntington Beach for the year ended June 30, 1979 (Exhibits A through GG, on Pages 6 through 63) , as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, except for the matters discussed in the second paragraph below, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As explained in Note 1 of notes to financial statements , the City has not maintained adequate detailed records of its general fixed assets and those fixed assets of the Water Utility Fund. As a result of such incomplete records , we were unable to satisfy ourselves, by appropriate audit tests or other means, as to the reasonableness of the amounts recorded as fixed assets in either the General Fixed Assets Group of Accounts or the Water Utility Fund. Because of the materiality of amounts recorded as property, plant and equipment in the General Fixed Assets Group of Accounts , we are unable to express our opinion on the accompanying financial statements of the General Fixed ' Assets Group of Accounts. In our opinion, except for the matters discussed in the preceding paragraph, relative to the Water Utility Fund, the aforementioned financial statements present fairly the financial position of the various funds and General Long Term Debt Group of Accounts of the City of Huntington Beach at June 30, 1979 and the ' results of operations of the various funds and changes in financial position of the Water Utility Fund, Meadowlark Golf Course Fund and Internal Service Fund - Self Insurance for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 4AW ' September 14, 1979 ' 5 CITY OF HLiVTINGTON BEACH ' COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT" GROUPS , JUNE 30, 1979 Special Internal Debt ' General Revenue Service Service Assets ' Cash and term deposits $ 6,418,035 10,459,768 3,306, 159 52,526 Accounts receivable, net 35,325 1 ,512 - - Property taxes receivable-net of reserve for taxes 228,635 - Notes receivable - 230,706 - - Interest receivable 138,501 - 47,728 - Investments at cost which approximate market (Note 5) 189 ,245 - - - Other receivables - - Due from other funds 486, 150 505, 136 - - Due from other governmental units , net 137,446 2,023,448 - 19, 102 Prepaid expenses 99,551 - - - ' Deposits - - - - Amount available in Debt Service - - - - Amount to be provided for debt retirement - - - - p ' Amount to be provided under financing leases (Note 3) - - - - Leased facilities under financing leases (Note 3) - - - - Property plant and equipment , net of allowance for depre- ciation - - - - ' Restricted assets - cash and investments 22,664 - - - Total assets S 7,755,552 13,220,570 3,353,887 71 ,628 ' See accompanying notes to financial statements . 6 ' CITY OF HUNTINGTON BEACH ' COMBINED BALANCE SHEET - ALL FUNDS AND ACCOUNT GROUPS EXHIBIT A JUNE 30, 1979 General ' Capital Trust General Fixed Projects Enterprise and Agency Long Term Assets ' 624,614 3,701 ,036 1 ,269,497 - - - 280,269 - - - ' 52,788 - - 21 ,009 76,507 17,315 15, 179 4,341 - - - - - 32 ,269 - - - - - 52,280 - 4,757,720 - - _ _ 12 ,795,831 - 12,762,795 25,960,710 _ _ 18,563,761 357,286 ' 649,964 _ 30,440 l 11122-1285_- 17,605,831 31 ,326,556 7 CITY OF HUNTINGTON BEACH ' GENERAL FUND EXHIBIT D, Continued ' STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 1979 Excess of Actual Percentage ' Revenue Over of Original Revised Actual (Under) Estimate Budget Change Budget Revenue Estimate Realized ' Revenue from Other Agencies Trailer coach license fee $ 100,000 100,000 87, 140 (12,860) 87% Alcoholic beverage fee 70,000 70,000 63,827 (6,173) 91 ' County lifeguard and maintenance 130,000 130,000 125,981 (4,019) 97 Documentary transfer tax 340,000 340,000 321 ,236 (18,764) 95 State oil and gas lease 90,000 90,000 89,142 (858) 99 , Federal government 25,000 25,000 20,035 (4,965) 80 Motor vehicle in lieu 2,300,000 2,300,000 2,341 ,592 41 ,592 102 Bagley conservation fund 500 500 - (500) ' Joint Powers - Fire 145,000 145,000 170,304 25,304 118 Injury leave reimbursements 65,000 65,000 70, 172 5, 172 108 State mandated cost reimbursements 68,309 68,309 - State surplus aid 2, 133,703 2,133,703 2,133,703 - 100 ' Other 20,000 20,000 11 ,023 (8,977) 55 Total revenue from other ' agencies 5,419,203 5,419,203 5,502,464 83,261 102 Charges for Current Services ' Zoning and subdivision 60,000 60,000 30,876 (29,124) 51 Sale of maps and publications 9,000 9,000 10, 103 1 ,103 112 Oil well application fees 10,000 10,000 500 (9,500) 5 Misc. filing and cert. fees 1 ,000 1 ,000 630 (370) 63 e Plan check fees 205,000 205,000 169,325 (35,675) 83 Engineering and inspection fees 160,000 160,000 144,256 (15,744) 90 Weed abatement 23,000 23,000 25,577 2,577 111 ' Special Police services 35,000 35,000 51 ,035 16,035 146 Recreation fees 130,000 130,000 167,925 37,925 129 Recreation contract 90,000 90,000 152,928 62,928 170 Exemption declarations and resources 11 ,000 11 ,000 5,803 (5, 197) 53 ' Water quality analysis 2,000 2,000 765 (1 ,235) 38 Junior lifeguard program 23,800 23,800 31 ,579 7,779 133 Library service 25,000 25,000 35,080 10,080 140 ' Post reimbursement $ 50,000 50,000 76,157 26, 157 152% 14 CITY OF HUNTINGTON BEACH ' GENERAL FUND EXHIBIT D, Continued STATEMENT OF REVENUE - ESTIMATED AND ACTUAL YEAR ENDED JUNE 30, 1979 Excess of Actual Percentage ' Original Revised Actual Revenue Over of Estimate Charges for Current Services , Budget Change Budget Revenue (Under) Estimate Realized Continued Adventureland $ 1 ,000 1 ,000 4,885 3,885 489% ' Certificate of occupancy fees 15,000 15,000 9,588 (5,412) 64 Grading plan check fees 3,000 3,000 2,131 (869) 71 Special fee - Engineering 6,000 6,000 4,307 (1 ,693) 72 ' Fire Department reports 300 300 326 26 109 Other 10, 100 10,100 30,014 19,914 297 ' Total charges for current services 870,200 870,200 953,790 83,590 110 ' Other Revenue - - - Sale of property - equipment 25,000 25,000 17,926 (7,074) 72 Sale of surplus real property 33,660 33,660 Sale of merchandise 15,000 15,000 5,528 (9,472) 37 ' Discounts earned 6,500 6,500 1 ,049 (5,451 ) 16 Special fees - inspection 5,500 5,500 7,933 2,433 144 Other 6,000 6,000 18,362 12,362 306 ' Total other revenue 58,000 - 58,000 84,458 26,458 146 Total general fund revenue 26,377,045 3,330,000 29,707,045 30,561 ,033 853,988 10 ' Transfers From Other Funds Civic Improvement Fund 2,076,100 (2,076,100) -0- - - - Special Gas Tax Fund 755,000 755,000 740,462 (14,538) 98 ' Traffic Safety Fund 540,000 540,000 781 ,425 241 ,425 145 Parking Meter Fund 155,000 155,000 141 ,938 (13,062) 92 Revenue Sharing 9,562 9,562 9,562 100 ' Library Service Fund 130,000 130,000 95,583 (34,417) 73 Grant Fund Total transfers 3,656,100 (2,066,538) 1 ,589,562 _1 ,768,970 i79,408 III Total general fund revenue and transfers $30,033, 145 1 ,263,462 31 ,296,607 32,330,003 1 ,033,396 103% See accompanying notes to financial statements. 15 CITY OF HUNTINGTON BEACH ' GENERAL FUND ' STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES YEAR ENDED JUNE 30, 1979 Appropriations Expenditures ' Personal Maintenance Original Revised Services and Capital Budget Change Budget Cost Operation outlay , Administrative City Council $ 43,187 256 43,443 26,008 11 ,455 Non-Departmental 3,636,457 2, 138,718 5,825,175 4,543,825 ' Administration 979,913 45, 137 1 ,025,050 775,868 1554,2533 38,963 Civic Promotion 38,918 17,469 56,387 809 43,014 Total Administrative 4j698,475 2,251 ,580 6,950,055 802,685 4.752,547 �8.963 ' Community Services , Planning 650,000 7, 185 657, 185 524,209 19,015 Library 1 ,123,300 107,949 1 ,231 ,249 786,649 283,685 6,890 Recreation and Parks 1 ,709,000 58,549 1 ,767,549 1 ,295,657 327,339 6,424 Public Works 4,603,921 402,886 5,006,807 3,363,165 1 .139,69 34,670 ' Total Community Services 8,086,221 576,569 8,662,790 5,969,680 1 ,769,308 47,984 Public Safety ' Fire 5,200,000 526,024 5,726,024 5,290,921 340,320 31 ,047 Police 99 200 090 31lJ] , 660 9,511 ,760 8,537,685 609,867 13,598 Harbors and Beaches 1 ,107;79 64,�60 1 ,172,349 898,942 196,436 481 ' Building 859,780 2,430 862,210 772,950 16,918 298 Total Public Safety 16,367,569 904,774. 17,272,343 15,500,498 1 , 163,541 45,424 Support Treasurer 1 ,388,000 9,723 1 ,397,723 140,316 1 ,212,582 21 Attorney 355,000 21 ,904 376,904 290,312 83,579 62 ' Clerk 108,700 2,494 111 ,194 91 ,538 15,809 Personnel 183,000 36,500 219,500 134,635 59,003 211 Finance 334,800 26,340 361 , i4o 350,843 (3, 155) Total Support 2,369,500 96,961 2,466,461 1 ,007,644 1 ,367,8.18 294 Total General Fund Direct $31 ,521 ,765 3-829,884 35,351 ,649 23,280,507 �,n5�,�14 132,665 ' Costs 16 CITY OF HUNTINGTON BEACH ' GENERAL FUND EXHIBIT E STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES YEAR ENDED JUNE 30, 1979 ' =ncumbrances Total Excess of Appropriations Percentage Outstanding Expenditures and Over (Under) Expenditures of Appropriations ' Encumbrances mEncumbrances and Encumbrances Used 37,463 5,980 86% ' 143,782 4,687,607 1 , 137,568 80 53,677 1 ,022,761 2,289 100 8,744 52,567 3,820 93 ' 206,203 5,800,398 1 , 149,657 84 ' 15,589 558,813 98,372 85 108,890 1 , 186, 114 45, 135 96 60,584 1 ,690,004 77,545 96 ' 412,936 4,9502040 56,767 99 597,999 8,384,971 277,819 97 66,536 5,728,824 (2,800) 100 204,825 9,365,975 145,785 98 29,834 1 , 125,693 46,656 96 6,767 796,933 65,277 92 ' 307,962 17,017,425 254,918 98 10,374 1 ,363,293 34,430 97 ' 3,413 377,366 (462) 100 1 ,442 108,789 2,405 98 167 194,016 25,484 88 ' 600 348,288 12,852 g6 15,996 2,391 ,752 74,709 97 ' 1 , 128,160 33,594,546 1 ,757,103 95% 17 CH ' CITY OF HUNTINGTON BEACH GENERAL FUND ' STATEMENT OF APPROPRIATIONS, EXPENDITURES AND ENCUMBRANCES YEAR ENDED JUNE 30, 1979 Appropriations Expenditures , Personal Maintenance Original Revised Services and Capital Budget Change Budget Cost Operation Outlay , Total General Fund ' direct costs $ 31 ,521 ,765 3,829,884 35,351 ,649 23,280,507 9,053,214 132,665 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, 1979 ' Encumbrances Total Excess of Appropriations Percentage Outstanding Expenditures and Over (Under) Expenditures of Appropriations ' Encumbrances Encumbrances and Encumbrances Used 1 , 128, 160 33,594,546 1 ,757,103 95% 1 1 19 CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS ' COMBINED BALANCE SHEET JUNE 30, 1979 Special Library Total Gas Tax Service Sewer ' Assets Cash and term deposits $ 10,459,768 2,031 ,123 2,057,394 Accounts receivable, net 1 ,512 1 ,512 ' Interest receivable 230,706 68,809 59,563 Due from other governmental units , net 2,023,448 984,556 Due from other funds 505, 136 4,404 491 ,000 $ 13,220,570 3,088,892 - 2,609,469 ' 1 Liabilities , Reserves and Fund Balance Liabilities : ' Cash overdraft $ 922,491 Accrued payroll 74,672 Accounts payable 260,478 Deposits 1 ,548 1 ,035 ' Due to other funds 573,714 1 ,563 Deferred revenue 14,960 14,960 Total liabilities 1 ,847,863 1 ,035 - _ 16,523 Encumbrances outstanding 2,586,855 1 ,443,494 34,631 Reserves: Other 78,226 Total reserves 78,226 - - - ' Fund balance (deficit) Unappropriated 8,572,681 1 ,644,363 — 2,558,315 Appropriated - developer deposits 134,945 Total fund balance 8,707,626 _ 1 ,644,363 2,558,315 ' See accompanying notes to financial $ 13,220,570 3,088,892 - 2,609,463 statements. 20 ' ' CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS EXHIBIT F COMBINED BALANCE SHEET JUNE 30, 1979 ' Park Planned Federal Federal Acquisition Local Revenue Manpower Other and Traffic Parking ' Drainage Sharing Grant Grants Development Safety Meter 2,244,684 1 ,550,355 2,576,212 t 45,333 42,490 14,511 858,934 103,808 76, 150 5,990 3,742 _ 2,296,007 1 ,596,587 858,934 103,808 2,590,723 76,150 - ' 821 ,897 100,594 71 , 197 3,475 27,440 199,782 32,245 1 ,011 ' 513 491 ,000 5,001 76, 150 491 ,000 27,440 1 ,092,876 136,314 _ 6,525 76, 150 - ' 161 ,371 633,219 314, i4o 31 ,226 47,000 ' 31 ,226 - - - 47,00-0 - - ' = 1 ,477,465 935,928 (233,942) (32,506) 2,223,058 - 134,945 1 ,612,410 935,928 (233,942) (32,506) 2,223,058 - - ' 2,296,007 1 ,596,537 858,934 103,808 2,590,723 76, 150 21 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS ' COMBINED STATEMENT OF- CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1979 1 Special Civic Equipment Library Total Gas Tax Improvement Replacement Service ' Fund balance (deficit) at July 1 , 1978 $ 9,662,695 3,028,697 592,074 500,065 Additions : ' Excess (deficiency) of revenues over expenditures and encumbrances (1 , 183,822) (1 ,430,841 ) Cancellation of July 1 , 1978 reserve for ' encumbrances 1 ,308,595 46,507 Transfer from general fund 21 ,859 Total fund balance and additions 9,809 ,327 1 ,644,363 592,074 500,065 Deductions: Transfer to capital projects fund 500,065 500,065 ' Transfer to general fund 601 ,636 592,074 Fund balance (deficit) at June 30, 1979 $ 8,707,626 1 ,644,363 - - See accompanying notes to financial statements. 22 CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS EXHIBIT G COMBINED STATEMENT OF CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1979 Park Planned General Federal Acquisition Local Revenue Manpower Other and Traffic Parking ' Sewer Drainage Sharing Grant Grants Development Safety Meter 2, 118,013 1 ,624,517 645,521 (117,394) (66,090) 1 ,337,292 424,466 (73,639) 27,991 (152,997) (62, 120) 83,318 ' 15,836 61 ,532 271 ,978 36,449 73,845 802,448 21 ,859 ' 2,558,315 1 ,612,410 945,490 (233,942) (32,506) 2,223,058 - - t 9,562 ' 2,558,315 1 ,612,410 935,928 (233,942) (32,506) 2,223,058 - - 23 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT H ' SPECIAL GAS TAX STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL ' YEAR ENDED JUNE 30, 1979 Budget Actual ' Original- evise Budget Change Budget Expenditures Encumbrances Total Revenue: Interest income S 160,000 160,000 293,679 ' State tax: Section 2107 755,000 755,000 740,462 Section 2107.5 10,000 10,000 10,000 Section 2106 870,000 870,000 847, 131 ' From Federal government 515,500 515,500 From State of California - 1 ,017,387 From Orange County 909,500 909,500 From other municipalities 16,200 16,200 , From other funds 9,700 9,700 From developers 8,000 8,000 Total revenue 3,253,900 - 3,253,900 2,900,659 ' Expenditures and encumbrances: Transfer to general fund 755,000 755,000 740,462 740,462 ' Capital outlay: Traffic signals 1 , 166,400 2,442 1 , 168,842 794,815 242,439 1 ,037,254 Street improvements 2,732,500 9,875 2,742 ,375 462,336 1 ,085,094 1 ,547,430 ' Drainage 955,000 955,000 881 ,668 85,090 966,758 Engineering 6,550 6,550 5,760 790 6,550 Other 27,640 27,640 11 ,001 30,045 41 ,046 Total expenditures and encumbrances 5,608,900 46,507 5,655,407 2,896,042 1 ,443,458 4 ,339,500 Excess (deficiency) of revenue over expenditures and encumbrances $(2,355,000) (46,507) (2,401 ,507) 1 430 841 ' See accompanying notes to financial statements . , 24 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT la CIVIC IMPROVEMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES ' BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 ' Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total t Revenue: Interest income $ 50,000 (50,000) -0- Utility tax - water 200,000 (200,000) -0- ' Utility tax - gas 500,000 (500,000) -0- Utility tax - telephone 1 ,000,000 (1 ,000,000) -0- Utility tax - electricity 1 ,580,000 (1 ,580,000) -0- ' Total revenue 3,330,000 (3,330,000) - ' Expenditures and encumbrances : ' Transfer to General Fund 2,076,100 (2,076,100) -0- Civic Center lease 854,900 (854,900) -0- Library lease 399,000 (399,000) -0- ' Total expenditures and encumbrances 3,330,000 (3,330,000) ' ' Excess of revenue over expendi- tures and encumbrances $ - See accompanying notes to financial statements. 25 CH ' CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT lb ' LIBRARY SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL ' YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised ' Budget Change Budget Expenditures Encumbrances Total Revenue: ' Library Service Fee $ 130,000 130,000 88, 198 Total revenue 130,000 - 130,000 88, 198 ' Expenditures and encumbrances: Transfer to General Fund 130,000 - 130,000 88, 198 - 88, 198 Excess of revenue over expenditures , and encumbrances $ - - - - See accompanying notes to financial statements. ' 26 i 1 CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS EXHIBIT J SEWER FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL ' YEAR ENDED JUNE 30, 1979 Budget Actual ' Original Revised Budget Change .Budget Expenditures Encumbrances Total ' Revenue: Interest income $ 95,000 95,000 205,302 Sewer permits 14o,000 140,000 67,171 Local assessments 80,000 80,000 29,872 ' Warner Avenue relief sewer 290,223 Total revenue 315,000 - 315,000 592,568 ' Expenditures and encumbrances : Sunset Beach Sanitary District 5,549 5,549 35,050 35,050 ' Pump Station improvements 31 ,759 31 ,759 13,923 11 ,647 25,570 Remote transmitter 1 ,887 1 ,887 1 ,887 1 ,887 Michael Drive storm drain 17,673 17,673 4,879 12,793 17,672 Master plan of sewers 55,000 55,000 41 ,376 8,303 49,679 ' Huntington Street sewer 13,000 13,000 39 39 Main Street trunk sewer 2,725 2,725 2,697 2,697 Warner Avenue relief sewer 11 ,062 11 ,062 30,139 30, 139 ' Other 470,000 (122,819) 347,181 5,369 5,369 Total expenditures and encumbrances 470,000 15,836 485,836 133,472 34,630 168, 102 Excess (deficiency) of revenue over expenditures and encumbrances $ (155,000) (15,836) (170,836) 424,466 ' See accompanying notes to financial statements. 27 1 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT K , PLANNED LOCAL DRAINAGE FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL , YEAR ENDED JUNE 30, 1979 Budget Actual , Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: ' Interest income $ 120,000 120,000 219, 140 Local assessments 700,000 700,000 370,224 Total revenue 820,000 - 820,000 589,364 ' Expenditures and encumbrances : Channel lining - Slater 175,000 (45,000) 130,000 115,082 12,800 127,882 ' Pump Station 8B - Atlanta - 75,557 75,557 72,597 72,597 Delaware SD - Phase 2 - 46, 109 46,109 1 ,942 39,012 40,954 Michael Drive Storm Drain - 81 ,672 81 ,672 76,853 3, 147 80,000 ' Storm Drain Master Plan - 50,000 50,000 41 ,252 7,945 49, 197 NG Engine/Pump/Gear/Drive 175,000 (35,000) 140,000 52,772 84,467 137,239 Gothard/Talbert Storm Drain 300,000 (285,500) 14,500 42 14,000 14,042 Other - 173,694 173,694 141 ,092 141 ,092 ' Total expenditures and encumbrances 650,000 61 ,532 711 ,532 501 ,632 161 ,371 663,003 ' Excess (deficiency) of revenue over expenditures and encum- brances $ 170,000 (61 ,532) 108,468 (73,639) See accompanying notes to financial statements. ' 28 ' 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, 1979 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total ' Revenue: Interest income $ 45,000 45,000 148,438 Federal revenue sharing 1 ,430,000 1 ,430,000 1 ,093,610 General revenue sharing-Title II 9,562 9,562 9,562 ' Other 434 Total revenue 1 ,475,000 9,562 1 ,484,562 1 ,252,044 ' Expenditures and encumbrances: Fire equipment 104, 140 104, 140 32,871 43,993 76,864 ' Fire paramedic equipment 19,426 19,426 6,29 13, 139 19,434 Fire vehicles 201 ,422 (26,301 ) 175,121 69,068 101 , 122 170, 190 Fire building improvements 2 ,000 2,000 2,000 2,000 Police equipment 148,674 148,674 39,521 39,521 ' Police vehicles 537,528 (357,425) 18o,103 20,390 155,901 176,291 Police heliport 2 , 00 247,600 14,424 14,424 Public Works equipment 80, 190 80,190 27,577 125 27,702 ' Public Works vehicles 18o,035 18o,035 101 ,421 49,75 151 ,173 Public Works shamel ash 106,767 106,767 64,856 39,75� 104,412 Public Works heavy equipment 128,656 128,656 20,724 20,724 ' Public Works traffic equipment 5,500 5,500 5,500 5,500 Public Works street 10,500 10,500 7,500 7,500 Public Works other 453,671 (225,261 ) 228,410 29,658 28, 150 57,808 Library books 75,000 75,000 14,736 60,305 75,041 ' Library security system 12,000 12,000 262 11 ,990 12,252 Library modification 29,000 29,000 989 6,451 7,440 Library materials 44,865 44,865 38,462 5,201 43,663 Library equipment 272,878 (124,24p) 148,638 - HBP&R equipment 42,614 42,614 3,093 7,846 10,939 HBP&R Human Services 284,914 (218,339) 66,575 - 29 1 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT L, Continued t GENERAL REVENUE SHARING FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL , YEAR ENDED JUNE 30, 1979 811dget Actual ' Original Revised Budget Change Budget Expenditures Encumbrances Total (Expenditures and encumbrances, cont. ) ' HBP&R Senior Center 2,980 2,980 2,526 2,526 HBP&R Gym 26,320 26,320 19,506 6,915 26,421 HBP&R Dock 49,000 49,000 82 82 , HBP&R Pier 236,380 (181 ,380) 55,000 23,632 31 ,950 55,582 HBP&R vehicles 19,900 19,900 12,317 763 13,080 HBP&R parking lot 31 ,680 31 ,680 23,437 8,243 31 ,680 Data Processing equipment 73,358 (15,365) 57,993 715 23, 181 23,896 ' Office equipment 5,860 15,347 21 ,207 7,907 4,362 12,269 Vapor recovery system 18,275 18,275 181 181 Miscellaneous capital items 91 ,412 746 92 , 158 1 ,483 550 2,033 , Transfers to general fund 9,562 9 ,562 33,425 33,425 Total expenditures and encumbrances 2, 157,423 262,466 2,419,889 590,834 633,219 1 ,224,053 ' Excess (deficiency) of revenue over expenditures and encum- brances $ (682,423) (252,904) (935,327) (27,991 ) See accompanying notes to financial statements . 30 CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS EXHIBIT M FEDERAL MANPOWER GRANT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES ' BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 ' Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total ' Revenue: Title I program $ 789,000 789,000 167,040 Title II program 175,000 175,000 431 ,469 ' Title VI program 1 ,157,000 1 ,157,000 1 ,836,907 Summer Youth program 196,259 Other 11261 ' Total revenue 2, 121 ,000 - 2,121 ,000 2,632,936 Expenditures and encumbrances: ' CETA Title I program 789,000 4, 173 793, 173 450,958 450,958 CETA Title II program 175,000 23,692 198,692 575,355 575,355 CETA Title VI program 1 , 157,000 8,584 1 , 165,584 1 ,759,620 1 ,759,620 ' Total expenditures and encumbrances 2, 121 ,000 36,449 2,157,449 2,785,933 - 2,785,933 ' Excess (deficiency) of revenue over expenditures and encumbrances $ - (36,449) (36,449) 052,997 ' See accompanying notes to financial statements. 31 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT N ' OTHER GRANTS FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL , YEAR ENDED JUNE 30, 1979 Budget Actual , Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: , National Science Foundation Circuit Rider $ 6,750 Juvenile Diversion/Treatment 128,000 128,000 253,204 County Revenue Sharing 57,561 57,561 53,387 ' Housing and Community Development 1 ,259,000 1 ,259,000 665,757 LCP Grant 35,000 35,000 28,373 SET Grant 48,568 48,568 131 ,932 , Robbery Suppression and Apprehension 35,000 35,000 130,015 Orange County - Public Docks 35,000 35,000 26,835 Delinquency Program 24,861 , Other 6,224 Total revenue 1 ,598, 129 - 1 ,598, 129 1 ,327,338 Expenditures and encumbrances: , EDA Grant 35,658 35,658 26,776 26,776 National Science Foundation ' Circuit Rider 3,860 3,860 Juvenile Diversion/Treatment 128,000 (82,922) 45,078 293,860 293,860 Bike Trails 2,823 2,823 2,716 2,716 Housing and Community Development 1 ,249,000 1 , 134, 134 2,383,134 673,022 673,022 SET Program 48,568 14,524 63,092 162,317 162,317 Robbery Suppression and Apprehension 35,000 111 , 110 146, 110 133,050 133,050 LCP Grant 35,000 128,265 163,265 27,165 27, 165 ' Seniors Outreach 1977 4,990 4,990 4,588 4,588 Seniors Outreach Program 53,530 53,530 62, 104 62, 104 Total expenditures and 1 encumbrances 1 ,495,568 1 ,402, 112 2,897,680 1 ,389,458 - 1 ,389 458 Excess (deficiency) of revenue over ' expenditures and encumbrances $ 102,561 0 ,402. 112) (1 ,299,551 ) (62,120) See accompanying notes to financial statements. 32 ' CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS EXHIBIT 0 PARK. A000ISITION AND DEVELOPMENT FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised Budget Change Budget Expenditures Encumbrances Total Revenue: ' Interest income $ 90,000 90,000 180,583 Subdivision license fee 800,000 800,000 849. 107 Unit lot fee 500,000 500,000 115,226 ' Rental income 5,204 From Orange County 50,000 Total revenue 1 ,390,000 - 1 ,390,000 1 ,200, 120 Expenditures and encumbrances : Park improvements : Old Town 74,565 7-4,565 75,412 75,412 Main Street 256 256 172 172 Goldenwest Fields 14, 140 14, i40 14, 140 14, 140 Murdy Park 1 ,456 1 ,456 215 215 LeBard Park 65 65 38 38 Perry Park 3,249 3,249 3,144 173 3,317 Gisler Park 4,065 4,065 3,722 3,722 Eader School Park 281 281 281 281 Central Park 162,68o 162,68o 22,893 127,800 150,693 Oak -View Park 30 30 30 30 ' Huntington Harbor Park 226 226 226 226 Chris Carr Park 858 858 Marina Park 573,865 573,865 494,687 77,490 572, 177 College View Park 35 35 77 77 ' Seabridge Park 1 ,285 1 ,285 1 ,052 1 ,052 Edison Community Park 1 ,583 1 ,583 1 ,556 1 ,556 Arevalos Park 195 195 168 168 Pleasant View Park 17,304 17,304 8,938 6,510 15,448 Hawes Park 26,299 26,299 19,490 6,800 26,290 Sunset Heights $ 150,000 (149,450) 550 - 33 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, 1979 Budget Actual Original Revised ' Budget Change Budget Expenditures Encumbrances Total (Expenditures and encumbrances, cont. ) ' Taylor Park $ 160,614 16o,6i4 124,370 34,323 158,693 Davenport Mini Park 201 201 Haven View Park 35 35 67 67 Robinwood Park 20,831 20,831 13,875 5, 100 18,975 Newland Park 30,669 30,669 19,903 8,910 28,813 Talbert Park 100 100 104 104 Lutheran Park 70,000 (60,000) 10,000 10,000 10,000 Lambert Park 60,000 (59,965) 35 161 161 Appraisals 407 407 Park signs 9,800 9,800 930 2,968 3,898 ' Landscape architect 50,000 50 50,050 7,412 43,537 50,949 Bike trails 1 ,887 1 ,887 Recreation center 935 935 936 974 Other 600,000 (34,637) 565,363 (22,492) 218 (22, ) Total expenditures and encumbrances 930,000 802,448 1 ,732,448 802,662 314, 140 1 , 116,802 ' Excess (deficiency) of revenue over expenditures and encumbrances $ 460,000 (802,448) (342,448) 83,318 Q See accompanying notes to financial statements . 34 CITY OF HUNTINGTON BEACH ' SPECIAL REVENUE FUNDS EXHIBIT P TRAFFIC SAFETY FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES ' BUDGET AND ACTUAL YEAR ENDED JUNE 30, 1979 Budget Actual ' Original Revised Budget Change Budget Expenditures Encumbrances Total ' Revenue: Traffic fines $ 540,000 540,000 781 ,425 ' Total revenue 540,000 - 540,000 781 ,425 Expenditures and encumbrances : Transfer to General Fund 540,000 - 540,000 781 ,425 - 781 ,425 ' Excess of revenue over expenditures and encumbrances $ - - - - 1 ' See accompanying notes to financial statements. 35 CITY OF HUNTINGTON BEACH SPECIAL REVENUE FUNDS EXHIBIT Q ' PARKING METER FUND STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES .BUDGET AND ACTUAL , YEAR ENDED JUNE 30, 1979 Budget Actual Original Revised , Budget Change Budget Expenditures Encumbrances Total Revenue: ' Parking meters: Commercial $ 18,000 18,000 14,869 Residential 12,000 12,000 12,851 Pacific Coast Highway 125,000 125,000 114,218 ' Total revenue 155,000 — 155,000 141 ,938 Expenditures and encumbrances : ' Transfer to General Fund 155,000 — 155,000 141 ,938 — 141 ,938 Excess of revenue over expenditures t and encumbrances $ - - - See accompanying notes to financial statements . 1 36 CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUND - SELF INSURANCE EXHIBIT R BALANCE SHEET JUNE 30, 1979 ' Assets Current assets : ' Cash and term deposits $ 3,306 159 Interest receivable 47,728 $ 3,353,887 Liabilities and Retained Earnings Current liabilities : ' Due to other funds $ 3,458 Accrued payroll 702 Accounts payable 12,209 Liability insurance claims 552,280 ' Workmen 's compensation claims 570,928 Total liabilities 1 ,139,577 ' Retained earnings Appropriated for future insurance claims 750,000 ' Unappropriated 1 ,464,310 Total retained earnings 2,214,310 ' $ 3,353,887 See accompanying notes to financial statements . 37 CITY OF HUNTINGTON BEACH ' INTERNAL SERVICE FUND - SELF INSURANCE EXHIBIT S ' STATEMENT OF REVENUE, EXPENSE AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1979 Revenues : ' Workmen 's compensation contributions from other funds $ 860,443 Liability contributions from other funds 765,824 , Interest income 209,597 Total revenues 1 ,835,864 Expenses : ' Liability insurance claims 552,280 Workmen's compensation claims 298,305 ' Contractual services 219,808 Disability payments 111 ,571 Personal service cost 23,781 Travel costs 493 ' Insurance 6,088 Other 574 Total expenses 1 ,212,900 , Net income S 622,964 , Retained earnings at July 1 , 1978, as previously reported $ 1 ,019,297 Add: Net income 622,964 , Amount reclassified from reserve 572,049 Retained earnings at June 30, 1979 S 2,214,310 See accompanying notes to financial statements. 38 ' CITY OF HUNTINGTON BEACH INTERNAL SERVICE FUND - SELF INSURANCE EXHIBIT T STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1979 Sources of Working Capital : ' Current operations : Net income $ 622,964 ' Increase in working capital $ 622,964 Changes in Components of Working Capital were as follows : ' Increase (decrease) in current assets: Cash and term deposits $ 1 ,401 ,603 Interest receivable 41 ,582 Due from other governmental agencies (1 , 127) ' Total increase in current assets 1 ,442,058 ' Decrease (increase) in current liabilities : Due to other funds (3,458) Accrued payroll (331 ) ' Accounts payable (12, 193) Liability insurance claims (523,455) Workmen 's compensation claims (279,657) Total increase in .current liabilities (819,094) Increase in working capital $ 622,964 See accompanying notes to financial statements. ' 39 CITY OF HUNTINGTON BEACH DEBT SERVICE FUNDS EXHIBIT U ' COMBINED BALANCE SHEET JUNE 30, 1979 1955 Water Bond 1970 Park Bond ' Interest and Interest and Total Redemption Fund Redemption Fund Assets , Cash and term deposits $ 52,526 52,526 Due from other governmental units , net of ' allowance for delinquent property taxes 19, 102 1 ,416 17,686 $ 71 ,625 53,942 17,686 , Liabilities and Fund Balance (Deficit) Liabilities - cash overdraft $ 19,348 - 19,348 Fund balance (deficit) 52,280 53,942 (1 ,662) ' $ 71 ,628 53,942 17,686 See accompanying notes to financial statements. ' 40 CITY OF HUNTINGTON BEACH ' DEBT SERVICE FUNDS EXHIBIT V COMBINED STATEMENT OF REVENUE, EXPENDITURES AND FUND BALANCE YEAR ENDED JUNE 30, 1979 ' 1955 Water Bond 1970 Park Bond Interest and Interest and ' Total Redemption Fund Redemption Fund Fund balance (deficit) at July 1 , 1978 $ 33,407 51 ,965 (18,558) ' Revenue: Property taxes 523,619 38,828 484,791 ' Total revenue 523,619 38,828 484,7g1 Expenditures: Redemption of matured bonds 210,000 35,000 175,000 Interest on bonds 294, 187 1 ,750 292,437 Other 559 101 458 ' Total expenditures 504,746 36,851 467,895 Excess of revenue over expenditures 18,873 1 ,977 16,896 ' Fund balance (deficit) at June 30, 1979 $ 52,280 53,942 0 ,662) See accompanying notes to financial statements. 41 CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS EXHIBIT W ' COMBINED BALANCE SHEET JUNE 30, 1979 Special 1955 Water t Capital Bond Total Outlay Construction Assets Cash $ 624,614 547,304 77,310 Interest receivable ` 21 ,009 21 ,009 Due from other entities 4,341 4,341__ 649,964 572,654 77,310 ' Liabilities , Reserves and Fund Balance Encumbrances 2,662 2,662 Unappropriated fund balance 647,302 569,992 77,310 $ 649,964 572,654 77,310 See accompanying notes to financial statements . 42 CITY OF HUNTINGTON BEACH CAPITAL PROJECTS FUNDS EXHIBIT X COMBINED STATEMENT OF REVENUE, EXPENDITURES, ENCUMBRANCES AND FUND BALANCE YEAR ENDED JUNE 30, 1979 ' Special 1955 Capital Bond Total Outlay Construction ' Fund balance at July 1 , 1978 $ 77,310 - 77,310 ' Revenue: Interest revenue 69,921 69,921 Cancellation of July 1 , 1978 reserve for en- cumbrances 5,093 5,093 Transfer of Equipment Replacement Fund Balance 500,065 500,065 Total revenue 575,079 575,079 - Expenditures and encumbrances 5,087 5,087 Excess of revenue over expenditures 569,992 569,992 - Fund balance at June 30, 1979 $ 647,302 569,992 77,310 ' See accompanying notes to financial statements. 1 43 CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS EXHIBIT Y ' COMBINED BALANCE SHEET JUNE 30, 1979 Water ' Utility Meadowlark Golf Total Fund Course Fund , Assets Current assets : Cash and term deposits $ 3,7012036 3,625,239 75,797 Accounts receivable: ' Trade, net of allowance of $17, 143 280,269 280,269 Other 17,315 17,315 Deposits 32,269 32,269 , Interest receivable 76,507 75, 106 1 ,401 Due from other funds 15, 179 15,179 Total current assets 4, 122,575 4,045,377 77, 198 Property, plant and equipment, net of allowance ' for depreciation 25,960,710 22,829,910 3,130,800 Assets restricted as to use - cash with fiscal agent 357,286 357,286 ' $ 30;440,571 27,232,573 3,207,998 ' See accompanying notes to financial statements . 44 CITY OF HUNTINGTON BEACH ENTERPRISE FUNDS EXHIBIT Y, Continued COMBINED BALANCE SHEET JUNE 30, 1979 ' Water Utility Meadowlark Golf Total Fund Course Fund Liabilities, Reserves , Contributions and ' Retained Earnings Deficit Current liabilities payable from current assets) : Accounts payable $ 885, 108 885, 108 ' Customer deposits 245,239 245,239 Accrued interest payable 46,325 46,325 Accrued expenses 19,832 19,832 Current installment of long term note payable 15,763 15,763 (Note 7) Current installment of bonds payable (Note 6) 130,000 130,000 Current liabilities (payable from restricted assets) : ' Matured interest payable 20,062 20,062 Accrued interest payable 14,925 14,925 Total current liabilities 1 ,377,25 1 ,315, 166 62,088 Long term note payable, net of current installment ' (Note 7) 1 ,901 ,910 1 ,901 ,910 Bonds payable in future years net of current install- ment (Note 6) 2,030,000 2,030,000 Total liabilities 5,309, 164 3,345, 166 1 ,963,998 Reserve for revenue bond retirement 194,924 194,924 Contributions: In aid of construction 15,121 ,693 15, 121 ,693 From general fund 1 ,359,932 92,608 1 ,267,324 Total contributions 16,481 ,625 15,21 ,301 1 ,2 7,32_ Retained earnings (deficit) 5 5 7 , 1 (23,324) $ 30,440,571 27,232,573 3,207,998 45 CITY OF HUNTINGTON BEACH WATER UTILITY FUND EXHIBIT Z ' STATEMENT OF REVENUE AND EXPENSES YEAR ENDED JUNE 30, 1979 Operating Revenue: Metered water sales $ 4,826,624 Municipal water sales 126,990 Fire hydrant rentals 61 ,478 Acreage fees 16,838 ' Tract fees 43,226 New services 46,�52 Other water services 46,595 Total operating revenue 5, 168,003 Operating Expenses : Source of supply 703,280 Pumping expense 1 , 167, 138 ' Water treatment 25,630 Transmission and distribution 312,619 Administrative and general 691 ,906 ' Contributions to general fund in lieu of taxes 748,880 Depreciation 650,000 _ Total operating expenses 4.2 99,,45� Operating income 868,550 Nonoperating income: Interest income 329,310 Other 42,578 Total nonoperating income 371 ,888 ' Total operating and nonoperating income 1 2 0 3 Nonoperating Expense Bond interest 89,633 Other 4,338 Total nonoperating expense 93,971 ' Net income See— no notes tofinancial statements . 46 $ 1 , 1 6, 7 CITY OF HUNTINGTON BEACH WATER UTILITY FUND EXHIBIT AA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED JUNE 30, 1979 Retained earnings at July 1 , 1978 $ 7,331 ,715 Add: ' Net income 1 , 146,467 Total balance and additions 8,478, 182 Retained earnings at June 30, 1979 $ 8,478, 182 ' See accompanying notes to financial statements. i 47 CITY OF HUNTINGTON BEACH WATER UTILITY FUND EXHIBIT BB STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1979 Sources of Working Capital : Current operations : Net earnings $ 1 , 146,467 ' Items which do not require an outlay of working capital : Depreciation 650,000 Working capital provided from operations 1 ,796,467 , Increase in reserve for revenue bond retirement 19,672 Total working capital provided 1 ,816,319 ' Disposition of Working Capital : ' Additions to fixed assets 1 , 175,918 Increase in assets restricted as to use - cash with fiscal agent 30,089 Decrease in long term bonds payable 145,000 Total working capital used 1 ,351 ,007 ' Increase in working capital $ 465, 132 Changes in Components of Working Capital were as follows: Increase (decrease) in current assets : ' Cash and term deposits $ 731 ,166 Accounts receivable, trade (net) 23,561 Accounts receivable, other (net) 9,717 Interest receivable 66,727 Due from other funds 15, 179 Total $ 846,350 48 CITY OF HUNTINGTON BEACH ' WATER UTILITY FUND EXHIBIT BB, Continued STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1979 ' Changes in Components of Working Capital , Continued Decrease increase in current liabilities : ' Accounts payable $ (278,972) Customer deposits (82,441 ) Accrued expenses (6,763) Accrued interest payable 650 ' Matured interest payable (3,692) Increase in current installment long term debt 00,000) ' Total (381 ,218) Increase in working capital $ 465, 132 ' See accompanying notes to financial statements. 1 ' 49 CITY OF HUNTINGTON BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT CC ' STATEMENT OF REVENUE AND EXPENSES YEAR ENDED JUNE 30, 1979 Revenue: t Lease revenue $ 150,000 Interest income 4,725 ' Total revenue 154,725 Expenditures : ' Interest 135,268 Depreciation 15,760 ' Total expenditures 151 ,028 Net income $ 3,697 ' 1 See accompanying notes to financial statements. ' 1 50 CITY OF HUNTINGTON BEACH ' MEADOWLARK GOLF COURSE FUND EXHIBIT DD STATEMENT OF CHANGES IN RETAINED DEFICIT YEAR ENDED JUNE 30, 1979 ' Retained deficit at July ,1 1978 $ 27,021 7, ' Add: Net income 3.697 ' 23 324 Retained deficit at June 30, 1979 $ 1 See accompanying notes to financial statements. 51 1 CITY OF HUNTINGTON BEACH MEADOWLARK GOLF COURSE FUND EXHIBIT EE ' STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1979 Sources of Working Capital : ' Net income $ 3,697 Ite^s which do not require an outlay of working capital ' Depreciation 15,760 Working capital provided from operations 19,457 ' Disposition of Working Capital : Payment of principal portion of notes payable 15,763 ' Increase in working capital $ 3,694 ' Changes in the components of working capital were as follows: Increase in current assets ' Cash 3,324 Accounts receivable 1 ,360 Due from general fund 41 Total increase in current assets 4,7�5 ' ( Increase) Decrease in current liabilities : ' increase in current portion of notes payable (1 ,031 ) Total increase in current liabilities __(1 ,031 ) Increase in working capital $ 3,694 See accompanying notes to financial statements. ' 52 1 CITY OF HUNTINGTON BEACH ' TRUST AND AGENCY FUNDS EXHIBIT FF COMBINED BALANCE SHEET JUNE 30, 1979 ' Employee Special Deferred Improvement Total Deposit Compensation Act ' Assets Cash and term deposits S 1 ,269,497 220,940 1 ,042, 113 6,444 ' Notes receivable 52,788 52,788 Total assets $ 1 ,322,285 220,940 1 ,094,901 6,444 Liabilities and Fund Balance Liabilities: ' Refundable deposits $ 220,940 220,940 Bond principal and interest payable 6,444 6,444 ' Total liabilities 227,384 220,940 - 6,444 Fund balance 1 ,094,901 - 1 ,094,901 - $ 1 ,322,285 220,940 1 ,094,901 6,444 See accompanying notes to financial statements. ' 53 CITY OF HUNTINGTON BEACH TRUST AND AGENCY FUNDS EXHIBIT GG ' COMBINED STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 1979 Employee , Special Deferred Improvement Total Deposit Compensation Act Fund balance at July 1 , 1978 $ 842,218 - 842,218 - t Add: ' Interest earned 85,791 85,791 Contributions received 207,457 - 207,457 ' Total additions and fund balance $ 1 , 135,466 1 , 135,466 - Less : ' Paid to participants in employee deferred compensation plan 40,565 40,565 ' Total deductions 40,565 - 40,565 - Fund balance at June 30, 1979 $ 1 ,094,901 - 1 ,094,901 See accompanying notes to financial statements. 54 , CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS JUNE 30, 1979 ' Note 1 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 for the City's ordinary operations which are financed from taxes and other general revenues and to account for all financial transactions not properly accounted ' for in another type of fund. b) Special Revenue Funds - to account for the proceeds from specific revenue sources (other than special assessments or to finance specified activities,as required by law or administrative ' regulation. c) Internal Service Funds - to account for financing and providing goods and services by one department to other departments of the City. d) Debt Service Funds - to account for the payment of interest and principal of general obligation long ' term debt. e) Capital Project Funds - to account for the financial resources used for the acquisition of capital facilities other than those financed by special assessment and enterprise funds. ' f) Enterprise Funds - to account for the financing of services to the general public where all or most of the costs involved are financed through charges to users of such services. g) Trust and Agency Funds to account for resources held by a governmental unit as trustee or agent for individuals , private organizations, and other governmental units. ' 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.. 55 CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS, Continued ' Note 1 Summary of Significant Accounting Policies, Continued Basis of Accounting , The accrual basis of accounting is followed for enterprise, internal service fund, and trust and agency funds. The accrual basis of accounting is defined as that basis of accounting under which revenues are ' recorded 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, debt service and capital project 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 availabl revenues which should be accrued to reflect properly the taxes levied and the revenues earned. Investments Investments are stated at cost which approximate market value. Investments generally consist of Federal t 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 - 1979 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 $28,399,471 of property and equipment, less $5,569,561 accumulated depreciation. Of these assets , approximately $8,373,000 represent water service assets which have been donated to the City by independent contractors prior to June 30, 1968. Such donated assets have ' been recorded at values estimated by City personnel . During 1977 and 1978 the City conducted an inventory of fixed assets of the water utility fund. This inventory resulted in the recording of approximately $1 ,894,000 in water service assets that were previously unrecorded. The City's evaluation of its water ' utility fixed assets is still continuing. Depreciation of 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: , 56 CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS, Continued Note 1 Summary of Significant Accounting Policies, Continued ' Asset Group _ Life Production and pumping plant 15-40 years ' Transmission and distribution plant 25-75 years General plant 10-30 years Transportation equipment 6-10 years ' The Meadowlark Golf Course property and equipment are stated at cost and are depreciated using the straight- line method over the estimated useful lives of the assets. tGeneral 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 treated as expenditures in the operating statements of the General , Special Revenue, Debt Service and Capital Project funds Vacation and Sick Leave ' It is the policy of the City to record the cost of vacation and sick leave when paid. At June 30, 1979 the total unrecorded liability for vacation and sick leave accumulated by City employees was approximately $1 ,715,887. Pension Plan Substantially all City employees participate in the Public Employees Retirement System administered by the ' State of California. This retirement plan covers substantially all City employees. The total pension ex- pense recognized by the City for the fiscal year ended June 30, 1979 was approximately $3,293,400. At June 30, 1979, the excess of actuarially computed value of vested benefits over available assets , if any, was not available. ' 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 57 CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS, Continued ' Note I Summary of Significant Accounting Policies , Continued approved by the Internal Revenue Service (Service) . The Service stipulated in its approval that legal ' title to the deferred compensation funds , together with any interest thereon, must rest with the City. For purposes of financial statement presentation, these deferred compensation funds have been treated as a separate trust fund of the City. ' 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 provide 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 sublease. Proper accounting under such ' circumstances requires that such lease be accounted for under the financing method. Under the financing method, the transaction is regarded as an installment purchase, whereby an asset and an associated long term liability are established. Annual rental payments are treated as reductions of a long term liability. ' Note 2 Equipment Sale - Leaseback Agreements The City has entered into a sale and leaseback agreement with an outside party for the lease of computer ' peripheral equipment. The agreement is for less than five years duration and represents a financial arrangement that , in essence, is considered an installment purchase. At June 30, 1979, the City owed the lessor approximately $33,000. The annual payment under the agreement approximates 536,000, including interest. The agreement represents a future general obligation of the City and has been recorded as a liability in the "General Long Term Debt and General Fixed Assets Groups of Accounts." ' Note 3 Leases The City has entered into two noncancellable lease and sublease agreements with the Huntington Beach Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the 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 capital leases. Under the financing method a transaction is regarded as an installment purchase, whereby an asset and related liability are recorded. Annual rental payments are treated as reductions of the liability. Advance rentals from the Corporation received by , the City for lease of the site upon which the facilities are constructed are recorded as deferred rental income in the General Fund and are being amortized over the terms of the sublease. A description of each lease agreement is as follows: ' 58 CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, Continued Note 3 Leases , Continued ' a) Civic Center The City has entered into a noncancellable lease and sublease agreement with the Corporation for the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation ' for �350,000 advance rental . The term of the lease is from January 15, 1976 to one week after the termination of the sublease. ' The Corporation has subleased the civic center site and improvements to the City for $854,900 annual base rental . The sublease commenced July 1 , 1974 for a term of '30 years or until all debts of the Corporation related to the civic center have 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, 1957 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. The City will hold no ownership interest in the San ' Joaquin Reservoir at the conclusion of the lease. b) In 1969, the City entered into an agreement with the Huntington Beach Parking Authority for the lease of certain parking facilities. The term of the lease is -24 years or until all of the Parking Authority's 1968 revenue bonds have been retired. Annual base rental payments under the lease agree- ment are $170,050. Ownership of the parking facility will always remain with the Parking Authority. ' c) In June, 1974, the City leased a park site from the Ocean View School District for a term of five years. The City may cancel the agreement at the end of any budgetary year. If the City makes all 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 financing lease. ' 59 CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS, Continued Note 4 Commitments, Continued ' Minimum aggregate rental commitments under the above agreements are as follows : , Year Amount 1980 $ 265,050 1981 265,050 , 1982 265,050 1983 264,050 1984 264,050 ' 1985-1989 1 ,310,250 1990-1994 880, 150 1995-1999 50,000 ' Remainder S 70,000 The City has entered into agreement with contractors which generally provide for possible reimburse- ment to the contractors , of costs incurred in constructing water, sewer, and 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 sub- sequent payments to expenditures as they are made. ' Note 5 Investments in Marketable Securities ' A summary of the City' s marketable securities at June 30, 1979 is as follows: Approx. ' Interest Principal Market Description Rate Maturity Amount Cost Value General Fund , Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds , First and Second Issue 5.55% 1988-1998 $100,000 79,434 85,700 ' City of Huntington Beach 1970 Park Bonds 6.0 1980 25,000 24,509 22,800 Huntington Beach Parking Authority 1968 Parking Revenue Bonds 5-5.25 1984-1998 100,000 85,302 90.900 Total Investments $225,000 189.245 199.400 60 ' CITY OF HUNTINGTON BEACH ' NOTES TO FINANCIAL STATEMENTS, Continued ' Note 6 Outstanding Indebtedness ' A summary of bonded indebtedness outstanding as of June 30, 1979 is as follows: Bonds Bonds Matured Bonds ' Date of Years of Rate of Amount of Outstanding During Outstanding Issue Bonds Maturity Interest Orig. Issue June 30, 1978 Year June 30, 1979 General Obligation Bonded Debt Group 1955 Water Bond 1955 1956-1962 5.50% $ 230,000 -0- -0- -0- ' 1963-1976 3.00 490,000 -0- -0- -0- 1977-1980 2.00 140,000 105,000 35,000 . 70,000 Total 1955 water Bond 860,000 105,000 35,000 70,000 1970 Park Bond 1974 1971-1972 5.00 225,000 -0- -0- -0- ' 1973-1974 5.25 255,000 -0- -0- -0- 1975-1977 5.50 440,000 -0- -0- -0- 1978-1983 5. 75 1 , 150,000 985,000 175,000 81o,000 1984-1995 6.00 3,930,000 3,930,000 -0- 3,930,000 ' Total 1970 Park Bond 6,000,000 4,915,000 175,000 4,740,000 ' Total general obligation bonded debt $ 6,86o,000 5,020,000 210,000 4,810,000 61 CITY OF HUNTINGTON BEACH , NOTES TO FINANCIAL STATEMENTS, Continued , Note 6, Outstanding Indebtedness, Continued Bonds ' Matured- Bonds Purchased Bonds Date of Years of Rate of Amount of Outstanding During Outstanding Issue Bonds Maturity Interest Orig. Issue June. 30, . 1978 Year June 30, 1979 , Revenue Bonds Water Utility Fund 1963 Water Revenue Bond 1963 1963-1974 4. 75% $ 700,000 -0- -0- --0- 1975-197d 3.25 460,000 120,000 120,000 -0- 1979-1981 3.30 400,000 400,000 -0- 400,o00 1982-1983 3.4o 300,000 295,000 -0- 295,000 ' 1984-1993 3.50 1 ,89o,000 1 ,48o,000 15,000 1 ,465,000 Total Revenue ' Bonds (a) (b) $ 3,750,000 2295000 135,000 2160 000 Less current portion 130,000 Long term portion 2,030,000 ' (a) The water revenue bonds do not represent a general liability of the City of Huntington Beach. (b) At June 30, 1979 , there were $1 ,950,000 authorized but unused 1963 water revenue bonds. ' Payable Meadowlark Golf Course Note Pa ' Note 7 Y In 1975, the City entered into an agreement to purchase the Meadowlark Golf Course from an independent , party for a total purchase price of $3,200,000. Terms of the agreement called for an initial down payment of $ 928,000 with the remaining $2,272,000 being in the form of long-term 7% note. At June 30, 1979 the balance of the note was $1 ,917,673. A schedule of yearly principal and interest pay- ' ments is as follows : Year Amount , 1980-2001 $ 150,000 2002-2008 200,000 ' 2009 115,703 62 ' 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. ' Note 8 Litigation ' At June 30, 1979, the City was defendant in several legal actions arising in the normal course of busi- ness. In several suits, the City was insured for public liability and property damage through various insurance policies aggregating up to $10,000,000 coverage for each occurrence. In the remainder of the suits, the City is self-insured. In the opinion of the City Attorney, the actual impact to the City ' upon resolution of the outstanding claims is insignificant and the self insurance fund is adequate. ' Note 9 Accounting for Self Insurance In 1979, the City elected to account for the self insurance fund as an internal service fund. In prior ' years, this fund was carried as a special revenue fund. Note 10 Grant Funds ' The Manpower Grant fund and the Other Grants fund have accumulated deficits of $233,942 and $32,506, respectively. These deficits can be primarily attributed to expenditures incurred, but may or may not be fully reimbursed under the various grants. Any amounts not fully reimbursed from the various grant ' funds will be reimbursed from the General Fund. 63 CITY OF HUNTINGTON BEACH STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES SCHEDULE I July 1 , 1969 through June 30, 1979 Fines Use of From Charges for ' Fiscal Other Licenses & & For- Money & Other Current Other Year Taxes Permits feitures Property Agencies Services Revenue 1969 s 1 ,938,841 742,853 65,007 295,504 1 ,053,917 816,856 40,607 ' 1970 2,256,982 809,773 79, 169 541 ,283 1 , 101 ,752 774,850 159,339 1971 2,569,358 772,347 90, 197 510,099 1 ,332,432 348,834 51 , 129 t 1972 3, 115,977 1 ,269,922 109,851 596,857 1 ,373, 140 409,013 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 2,040,207 325,912 49,277 1977 6,785,656 2,817,209 214,808 1 ,050,938 2,567,992 942,760 48,714 ' 1978 7,953,048 2,653,129 216,362 1 ,415,212 3,076,250 938, 182 99,600 1979 S 12,825,591 2,485,540 224,026 1 ,814, 115 5,502,464 953,790 84,458 64 1 CITY OF HUNTINGTON BEACH 1 STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND SCHEDULE II July 1 , 1969 through June 30, 1979 ' Public Safety Services Fiscal Administrative Services Community Services Y Year Expenditures Encumbrances Expenditures Encumbrances Expenditures Encumbrances 1 1 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 1 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 6,977,233 190,358 10,858,325 117,564 1 1976 3, 194,089 201 ,011 6,653,560 250,073 12,233,405 203,783 1977 2,664, 478 153,201 7,747,535 435,898 141074,326 317,631 1978 3,635,719 161 ,464 8,673,505 447,231 14,953,652 223, 169 1979 $ 5,594, 195 206,203 7,786,972 597,999 16,709,463 307,962 i - 1 1 i 1 1 1 1 65 CITY OF HUNTINGTON BEACH i STATEMENT OF EXPENDITURES AND ENCUMBRANCES FOR GENERAL FUND , CONTINUED SCHEDULE II , ' July 1 , 1969 through June 30, 1979 Continued Support Services Total General Fund , Expenditures Encumbrances Expenditures Encumbrances 355,440 7, 139 8,428,200 163,381 444,095 3,879 11 ,324,803 565,496 ' 544,078 4,456 12,299,082 274,957 724,723 8,283 14, lo4,264 210,272 720,979 13, 158 16,519,654 1 ,428,031 t 906,900 5,966 18,543,895 70,356 813,411 5,367 21 ,451 ,239 327,790 1 ,247,564 7,616 23,328,618 662,483 2,493,343 47,288 26,979,687 954,018 1 .814,454 22.280 29,077,330 854, 144 $ 2,375,756 15 ,996 32,466,386 1 , 128, 160 66 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 , 1969 through June 30, 1979 % 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 1969 104, 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 6,090,000 49,444,617 1 .64 46.85 1973 143,325 410,283, 199 61 ,542,480 5,930,000 55,612,480 1 .45 41 .37 1974 143,636 442,271 ,658 66,340,749 5,765,000 60,575,749 1 .30 40. 14 1975 146,400 529,973.310 79,495,997 5,590,000 73,905,997 1 .05 38. 18 ' 1976 151 ,500 580,623,450 87,093,518 5,410,000 81 ,683,518 .93 35.71 1977 157,800 710,079,235 106,511 ,885 5,220,000 101 ,291 ,885 .74 33.08 1978 161 ,200 854,321 ,745 128, 148,262 •5,020,000 123, 128,262 .59 31 . 14 ' 1979 167,500 $ 831 ,783,620 124,767,543 4,810,000 119,957 ,543 .58 28. 72 67 CITY OF HUNTINGTON BEACII STATEMENT OF TAX DELINQUENCIES AND IMPOUNDS SCHEDULE IV ' July 1 , 1969 through June 30 , 1979 Secured Taxes Unsecured Taxes ' Fiscal Tax Total Delinquency Total Delinauency Year Rate Total Levy Collections Amount Percent 'Total Levy Collections Amount Percent Impounds , 1969 $ 1 .45 3,898,311 3,763,889 41 ,777 1 .07% 204,032 201 ,964 2,068 I .ol% 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 .80 54 ,587 1972 1 .62 5,565,713 5,395,846 59,651 1 .07 432,025 401 ,297 4,628 1 .07 136,322 ' 1973 1 .62 6,249,372 6,094,.111 51 ,276 .82 397,216 391 , 186 6,030 1 .51 130,985 1974 1 . 62 6, 703,620 6,499,009 66,654 .99 461 , 181 456,296 4,885 1 .06 137,957 1975 1 .62 8,099,022 7,844,596 74,987 •93 486,545 484, 124 11 , 169 2.30 179,439 ' 1976 1 .62 8,852,049 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 . 17 549,994 538,370 6,791 1 .23 328,4551 1978 1 .55 12,5637144 12,336,834 186,310 1 .49 7427053 711 ,519 30,534 4. 11 204,883 1979 $ . 1972 5,635,879 5,525, 120 110,759 1 .970 561 ,420 537,307 24, 113 4. 30% 195,202 ' 68 ' CITY OF HUNTINGTON BEACH ' STATEMENT OF FUTURE GENERAL OBLIGATION BONDED DEBT REQUIREMENTS BY YEAR SCHEDULE V BASED ON BONDED DEBT JUNE 30, 1979 Fiscal Year Principal Interest Total 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 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 $ 4,810,000 2,759,788 7,569,788 The 1955 Water General Obligation Bonds will be totally paid in August, 1980. 69 CITY OF HUNTINGTON BEACH STATEMENT OF FUTURE WATER REVENUE BOND REQUIREMENTS BY YEAR SCHEDULE VI , BASED ON OUTSTANDING DEBT JUNE 30, 1979 Fiscal Year Principal Interest Total ' 1980 $ 130,000 87,405 217,405 1981 130,000 83, 115 213, 115 1982 140,000 78,660 218,660 ' 1983 145,000 71 ,340 216,340 1984 150,000 68,700 218,700 1985 160,000 65,350 225,350 , 1986 160,000 59,350 219,350 1987 170,000 53,250 223,250 1988 180,000 47,030 227,030 ' 1989 180,000 40,000 220,000 1990 190,000 33,075 223,075 1991 200,000 26,250 226,250 1992 210,000 19,075 229,075 ' 1993 15,000 788 15,738 Total $ 2, 160,000 733,338 2,893,388 70 ' CITY OF HUNTINGTON BEACH ' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION (a) SCHEDULE V11 STATEMENT OF BONDED DEBT YEAR ENDED JUNE 30, 1979 Date Years Bonds Bonds Bonds ' of of Rate of Original Outstanding Matured Outstanding Description Bonds Maturity Interest Issue July 1 , 1978 During Year June 30, 1979 Civic Center Jan. , 1972 1975-1982 7.00% $ 2,010,000 1 ,130,000 260,000 870,000 ' Leasehold Mort- 1983 5. 70 330,000 330,000 -0- 330,000 gage Bonds, 1984-1996 5.50 7,040,000 7,005,000 -0- 7,005,000 First Issue 1997-1998 5.00 1 ,720,000 1 ,675,000 -0- 1 ,675,000 ' Total _ 11 , 100,000 10,140,000 260,000 _ 9,880,000 ' Central Library Feb. , 1972 1975-1983 7.00% 1 ,220,000 885,000 130,000 755,000 Leasehold Mort- 1984 5.90 18o,000 180,000 -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 4,665,000 130,000 4,535,000 ' Total bonded debt $16, 100,000 14,805,000 390,000 14.415,noo ' (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporation is an independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. ' 71 CITY OF HUNTINGTON BEACII HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION SCHEDULE VIII , STATFMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT (a) JUNE 30, 1979 Fiscal Civic Center Issue Library Issue Total Year Principal Interest . Total Principal Interest Total Principal Interest Total ' 1980 $ 270,000 552,910 822,910 135,000 256,592 391 ,592 405,000 809,502 1 ,214502 , 1981 290,000 534,010 824,010 140,000 249,967 386,967 430,000 780,977 1 ,210:977 1982 310,000 513,710 823,710 150,O00 236,817 386,817 460,000 750,527 1 ,210,527 1983 330,000 492,010 822,010 160,000 225,967 385,967 490,000 717,977 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 18o,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,o87 382,087 630,000 5922,6656687 1 ,222,6656687 1988 460,000 386,850 846,850 210,000 170,812 380,812 670,000 5i ,%2 1 ,227,%2 ' 1989 465,000 360, 175 825, 175 230,000 158,712 388,712 > 1990 530,000 333,225 863,225 240,000 145,667 385,667 770,000 478,892 1 ,248,892 1991 560,000 304,075 864,075 260,000 131 ,667 391 ,667 820,000 435,742 1 ,255,742 , 1992 600,000 273,275 873,275 270,000 116,827 386,827 870,000 390, 102 1 ,260, 102 1993 640,000 240,275 880,275 290,000 101 ,002 391 ,002 930,000 341 ,277 1 ,271 ,277 1994 680,000 205,075 885,075 305,000 83,968 388,968 985,000 289,043 1 ,274,043 1995 725,000 167,400 892,400 320,000 66,000 386,000 1 ,o45,000 233,400 1278,400 ' 1996 775,000_ 126,975 901 ,975 340,000 47,025 387,025 1 , 115,000 174,000 1289,000 1997 830,000 84,075 914,075 360,000 28,250 388,250 1 , 190,000 112,325 1 ,302 ,325 ' 1998 845-000 40,325 U5,325 385,000 9,625 394,625 1 ,230,000 49,950 1 ,279 ,950 Total $ 9,880,000 6,383,965 16,263,965 4,535,000 2,818,276 7,353,276 14,415,000 9,202,241 23,617,241 Principal Due: January September Interest Due: July and January September and March , (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporation is an independent entity. Accordingly, the obligations of the Public Facilities ' Corporation do not constitute an obligation of the City. 72 , CITY OF HUNTINGTON BEACH ' PARKING AUTHORITY OF THE CITY SCHEDULE IX OF HUNTINGTON BEACH STATEMENT OF BONDED DEBT (a) JUNE 30, 1979 Date Years Bonds Bonds Bonds of of Rate of Original Outstanding Matured Outstanding Description Bonds Maturity Interest Issue July 1 , 1978 During Year June 30, 1979 1968 Parking Sept. , 1968 1970-1972 6.00% $ 150,000 -0- -0- Revenue Bonds 1973-1979 4. 75 470,000 155,000 75,000 80,000 1980-1985 5.00 570,000 570,000 -0- 570,000 1986-1993 5.25 1 , 110,000 1 , 110,000 -0- 1 , 110,000 Total $ 2,300,000 1 ,835,000 75,000 1 ,760,000 ' PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT JUNE 30, 1979 Fiscal Year Principal Interest Total ' 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 ' 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 140,000 28,613 168,613 1992 150,000 21 ,000 171 ,000 1993 160,000 12,863 172,863 ' 1994 165,000 4,331 169,331 Total 73$ 1 ,760,000 778,213 2,538,213 ' (a) The above schedules have been included herein for intormational purposes only. The Parking Authority is an indepen-. dent entity. Accordingly, its obligations are not obligations of the .City. � CITY OF HUNTIN N BEACH � PUBLIC FACILITIES CORPORATION 1 1 1 1 1 1 1 1 1 1 1 1 HUNTINGTON BEACH PUBLIC ' FACILITIES CORPORATION FINANCIAL STATEMENTS JUNE 30,1979 (With Accountants' Report Thereon) 1 1 PEAT. MARWICK, -MITCHELL & CO. CERTIFIED PUBLIC ACCOUNTANTS 1 660 NEWPORT CENTER DRIVE NEWPORT BEACH,CALIFORNIA 92660 1 The Honorable Board of Directors 1 Huntington Beach Public Facilities Corporation Huntington Beach, California 1 We have examined the combined balance sheet of the Huntington Beach Public Facilities Corporation as of June 30, 1979 and the related combined statement of earnings and retained earnings and changes in financial position for the 1 year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. 1 in our opinion, the aforementioned combined financial statements present fairly the financial position of the Huntington Beach Public Facilities Corporation at June 30, 1979 and the results of its operations and the changes in its financial position for the year then ended in conformity with generally accepted accounting principles applied 1 on a basis consistent with that of the preceding year. 1 - 1 September 14, 1979 1 74 , HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED BALANCE SHEET JUNE 30, 1979 Civic r Total Center Project Library Project Assets Current assets restricted as to use: Cash held by trustee $ 82 - 82 Time certificates of deposit 963,362 644,768 318,594 , Temporary investments in U.S. government securities, at cost (market : $1 ,550,747) 1 ,628, 1 ]6 1 , 156,878 471 ,238 Accrued interest receivable 41 ,786 21 ,412 20,374 Interproject balances - 5,815 (5;815) , Total current assets restricted as to use 2,633,346 1 ,828,873 804,473 Long term leases receivable less unearned income of $11 ,061 ,307 (Note 3) 12,762,795 8,715,012 4,047,783 Total assets $15,396,141 10,543,885 4,852,256 Liabilities and Retained Earnings Current liabilities payable from restricted assets: Accrued interest $ 338,240 253,587 84,653 Current installment of bonds payable (Note 4) 405,000 270,000 135,000 , Total current liabilities 743,240 523,587 219,653 Deferred lease income 80,557 80,557 - . Bonds payable, net of current installment (Note 4) 14,010,000 9,610,000 4,400,000 Total liabilities 14,833,797 10,214,144 4,619,653 , Retained earnings 562,344 329,741 232,603 Total liabilities and retained earnings $15,396,141 10,543;885 4,852,256 See accompanying notes to financial statements 75 ' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1979 ' Civic Library Operating revenue: Total Center Project Project Interest income: ' Lease payments received $ 1 ,253,900 854,900 399,000 Less portion applicable to principal 275,513 188,665 86,848 978,387 666,235 312, 152 Operating expenses : Storm drain repair 5,498 5,498 _ - ' Net operating income 972,889 660,737 312,152 Nonoperating revenue: ' Interest earned 205,432 152,901 52,531 Total operating and nonoperating income 1 , 178,321 813,638 364,683 Nonoperating expenses : Interest expense 805,703 550,167 255,536 Net earnings 372,618 263,471 109, 147 ' Retained earnings at July 1 , 1978 189,726 66,270 123,456 Retained earnings at June 30, 1979 $ 562,344 329,741 232,603 ' See accompanying notes to financial statements. 76 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION , YEAR ENDED JUNE 30, 1979 Civic Library Total Center Project Project Source of funds: ' Funds provided from operations: Net earnings $ 372,618 263,471 109, 147 Decrease in long term lease receivable 275,513 188,665 86,848 $ 648, 131 452, 136 195..995 Use of funds : Redemption of bonds payable $ 405,000 270,000 135,000 Decrease in deferred lease income 4,027 4,027 - Increase in working capital 239,104 178,109 60,995 ' $ 648, 131 452, 136 195,995 Changes in components of working capital : Increase (decrease) in current assets: Cash held by trustee $ (464) (546) 82 Time certificates 139, 159 76, 190 62,969 Temporary investment in government securities 100,103 85,995 14, 108 Accrued interest receivable (12,795) (11 ,989) (806) Interproject balances -0- 20,691 (20,691 ) ' 226,003 170,341 55,662 Decrease (increase) in current liabilities : Accrued interest payable 28, 101 17,768 10,333 Current installment of long-term debt (15,000) (10,000) (5,000) 13, 101 7,768 5.333 Increase in working capital $ 239,104 178, 1o9 60,995 See accompanying notes to financial statements. 77 ' ' HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1979 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. Temporary Investments Investments are stated at cost. Such investments generally consist of Federal Government backed securities and are not adjusted for amortization of purchase premium or discount, which has been determined to be ' immaterial at June 30, 1979. Funds Under the provisionsof the bond indenture agreements, the Corporation is required to maintain separate accountability for various types of funds the Corporation receives. A 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 ' 78 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 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) . 79 ' ' 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 the earlier of: (a) thirty (30) years or (b) until the bonded indebtedness incurred by the Corpora- tion to construct the Central Library has been paid. Under both agreements, the City is required to pay all taxes , insurance, administrative and maintenance ' costs associated with the facilities under lease. At the conclusion of the lease agreements title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such lease be treated as a financing lease. Under the financing method, the excess of aggre- gate rentals over the cost of the leased property is generally designed to compensate the lessor for the use of funds invested. Accordingly, at June 30, 1979, leases receivable from the City of Huntington Beach totaling $12,762,795 net of unearned interest, for the Civic Center and Central Library facilities have been reflected in the financial statements . The site advances are included in the long term leases receivable and are amortized over the term of the leases. 8o 1 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, 1979 is as follows: ' Maturities Date Interest Original Outstanding Annual Period , Bond issue issue rate issue June 30, 1979 requirements covered Civic Center: Leasehold Varying amounts ' Mortgage Bonds , January 5.00 - from $200,000 to First Issue (a) 1972 7.00% $ 11 , 100,000 $ 9,880,000 $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 4,535,000 $385,000 1975-1997 $ 16, wo,00O $ 14,415,000 , a) The $11 , 100,000 principal amount of Leasehold Mortgage Bonds , First Issue (Bonds) are dated January 15, 1972 and have been issued as coupon bonds in $5,000 denominations. The Bonds, which are serial in nature, mature annually on January 15 of each year. Interest is payable semiannually on January 15 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 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 81 1 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION 1 NOTES TO FINANCIAL STATEMENTS,. CONTINUED 4. Outstanding Indebtedness, Continued 1 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 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. 1 1 1 i 1 1 1 1 1 ' 82 � CITY OF HUNTINGTON BEACH 1 PARKING AUTHORITY 1 1 1 1 1 1 1 1 1 1 1 1 1 ' PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH ' FINANCIAL STATEMENTS JUNE 30, 1979 ' (With Accountants' Report Thereon) t 1 PEAT. MARWICK. MITCHELL & CO CERTIFIED PUBLIC ACCOUNTANTS GGO \EWPORT CENTER DRIVE \EIti'PORT BEACII,CALIFORNIA 92660 1 The Honorable Members of the Parking Authority City of Huntington Beach Huntington Beach, California ' We have examined the balance sheets of the Parking Authority of the City of Huntington Beach as of June 30, 1979 and 1978, and the related statements of earnings and retained earnings and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered 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, 1979 and 1978, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting ' principles applied on a consistent basis. September 14 1 p 979 1 83 , PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH BALANCE SHEET ' JUNE 30, 1979 AND 1978 Assets : 1979 1978 I Current assets : Cash and term deposits $ 137,503 137,503 Receivables : Due from general fund 2,330 - , Accrued interest receivable 9, 165 14,631 Total receivables 11 ,495 14,631 , Total current assets 148,998 152, 134 Assets restricted as to use: ' Investments , at cost which approximates market value (Note 3) 631 ,548 572, 107 Cash with fiscal agent 6,537 - Total restricted assets 638,085 572, 107 ' Fixed assets , at cost: ' Land 371 ,065 371 ,065 Improvements 1 .694,089 1 ,694,089 Less allo„rance for depreciation (677,901 ) (605,217) ' Total fixed assets 1 ,387,253 1 ,459,937 Total assets $ 2,174,336 2.184, 178 ' Liabilities and Retained Earnings: Current liabilities: Accrued interest payable $ 30,078 30,078 Current installment of bonds payable (Note 3) 80,000 75,000 Matured interest payable from restricted assets 6,537 - ' Total current liabilities 116,61r, 105,078 Bonds payable, net of current installment (Note 3) 1 ,680,000 1 ,760,000 ' Total liabilities 1 ,796,615 1 ,865,078 Retained earnings 377,721 319, 100 ' Total liabilities and retained earnings $ 2, 174,336 2,184, 178 ' See accompanying notes to financial statements. 84 1 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH ' STATEMENT OF EARNINGS AND RETAINED EARNINGS YEARS ENDED JUNE 30, 1979 AND 1978 ' 1979 1978 Operating revenue: Rentals (Note 2) $ 170,050 170,050 ' Operating expenses: Depreciation 72,684 72,684 ' Net operating income 97,366 97,366 Nonoperating revenue: ' Interest earned 53_,611 35,345 Total operating and nonoperating income 150,977 132,711 ' Nonoperating expenses : Interest expense 92,356 93,569 ' Net earnings 58,621 39, 142 Retained earnings, beginning of year 319, 100 279,958 ' Retained earnings , end of year $ 377.721 319,100 See accompanying notes to financial statements. ' 85 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENTS OF CHANGES IN FINANCIAL POSITION ' YEARS ENDED JUNE 30, 1979 AND 1978 1979 1g78 Sources of working capital Net earnings $ 58,621 39,142 Items which do not use working capital : Depreciation of land improvements 72,684 72,684 , Working capital provided by operations 131 ,305 111 ,826 Decrease in restricted assets - 121 ,310 ' Decrease in working capital 14,673 11 ,914 $ 145,978 245,050 Uses of working capital : Decrease in bonds payable $ 80,000 75,000 ' Reduction in deferred lease income 170,050 Increase in restricted assets 65,978 - $ 145,978 245,050 ' Changes in comnponents of working capital : , Decrease ( increase) in current assets : Cash and term deposits $ - (6, 146) Receivables 3, 136 15,291 ' 3, 136 9, 145 Increase (decrease) in current liabilities : Accrued interest payable (2,231 ) Matured interest payable 6,537 - Current installment of bonds payable 5,000 5,000 ' 11 ,537 2,769 Decrease in working capital $ 14,673 11 ,914 See accompanying notes to financial statements . ' 86 ' PARKING AUTHORITY OF THE CITY ' OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS ' JUNE 30, 1979 ' (1 ) Summary of Significant Accounting Policies Basis of Accounting ' The accompanying 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 (23 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 (see Note 3) . Lease The Parking Authority leasing operations consist principally of the leasing of its parking facilities to the City of Huntington Beach. The Parking Authority lease with the City of Huntington Beach is classified as an ' operating lease. ' (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 facilities through the issuance of $2,300,000 of revenue bonds which are secured by the rental payments received from the City. The rental is payable annually on July 1 . Rental income is to be used for bond principal and interest requirements. ' Excess funds , if any, including interest earned thereon, which are not required to meet scheduled principal and interest payments and which are not required by the bond indenture agreement to be established as a 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. 87 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 t7e form of additional rent, all taxes , assessments , insurance, fees and other expenses of the Parking Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility. (3) Bonded Debt I su-r.ary of the Parking Authority bonded debt is as follows: ' Bonds Bonds Matured Matured Amount of Bonds During Bonds During Bonds Date Years of Rate of Original Outstanding Fiscal Outstanding Fiscal Outstandi Description of Issue Maturity Interest Issue 6/30/77 1978 6/30/78 1979 6/30/79 1968 Parking September, 1970-72 6.00% S 150,000 Revenue Bonds 1968 1973-79 4. 75 470,000 225,000 70,000 155,000 75,000 80,000' 1980-85 5.00 570,000 570,000 - 570,000 - 570,000 1986-93 5.25 1 , 110,000 1 , 110,000 - 1 , 110,000 - 1 , 110,000 $2 ,300,000 1 ,905,000 70,000 1 ,835,000 75,000 1 ,760,000 Interest is payable semiannually each year on March 1 and September 1 . Provisions of the bond agreement provide for the establishment of three special funds as follows : (a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking , facility are placed in the 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 cir- cumstances such excess funds may be used to finance additions and improvements or reduce the annuj rental due from the City. 88 , PARKING AUTHORITY OF THE CITY 1 OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, CONTINUED 1 1 (3) Bonded Debt , Continued(b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside to be used to pay principal and interest coming due in the event there is insufficient money in the 1 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 1 and an appropriate reserve fund balance has been established , excess money, if any, remaining in the bond service fund may be transferred to the working capital fund to be used to pay the adminis- trative expenses of the Parking Authority and maintain the working capital fund' s cash at a balance of at least $1 ,500. 1 At June 30, 1979, the Parking Authority maintained the following investments pursuant to the terms of the bond agreement (see Note 1 ) : 1979 1978 Bond Service Fund $ 542,965 483,794 1 Reserve Fund 88,583 88,313 $ 631 ,548 572,107 1 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 1 percent for each 1 year or portion of a year from the redemption date to the maturity date, up to a maximum of 3 1/2 percent. i 1 ' 89 CITY OF HUNTINGTON BEACH ' ANNUAL FINANCIAL REPORT TABLE OF CONTENTS 1 Exhibit Page ' Letter of Transmittal I Elected City Officials 4 Departments of the City 4 Accountants ' Report 5 ' Financial Statements : Combined Balance Sheet - All Funds and Account Groups A 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 la 25 Library Service Fund Ib 26 ' Sewer Fund 1 27 Planned Local Drainage K 28 General Revenue Sharing Fund L 29 Federal Manpower Grant Fund M 31 ' Other Grants Fund N 32 Park Acquisition and Development Fund 0 33 Traffic Safety Fund P 35 ' Parking Meter Fund Q 36 f CITY OF HTI'N NGTON BEACH ' L� ANNUAL FINANCIAL REPORT ' TABLE OF CONTENTS Exhibit Page Internal Service Fund - Self Insurance Balance Sheet R 37 Statement of Revenue, Expense and Retained Earnings S 3$ Statement of Changes in Financial Position T 39 , Debt Service Funds: Combined Balance Sheet U 40 ' Combined Statement of Revenue, Expenditures and Fund Balance (Deficit) V 41 Capital Project Funds: ' Combined Balance Sheets W 42 Combined Statement of Revenue, Expenditures , Encumbrances and , Fund Balance X 43 Enterprise Funds: Combined Balance Sheet y 44 ' Water Utility Fund: , Statement of Revenue and Expenses Z 46 Statement of Changes in Retained Earnings AA 47 Statement of Changes in Financial Position BB 48 ' Meadowlark Golf Course Fund: Statement of Revenue and Expenses CC 50 Statement of Changes in Accumulated Deficit DD 51 Statement of Changes in Financial Position EE 52 Trust and Agency Funds: ' Combined Balance Sheet FF 53 Combined Statement of Changes in Fund Balance GG 54 ' ii ' CITY OF HUNTINGTON BEACH ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Exhibit Page 1 Notes to Financial Statements 55 ' Supplemental Information (not covered in accountants ' report) ' Statement of General Fund Revenues - Other than Property Taxes Schedule 1 64 Statement of Expenditures and Encumbrances for General Fund Schedule II 65 Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bond Debt to Assessed Value and Per Capita Schedule 111 67 ' Statement of Tax Delinquencies and Impounds Schedule IV 68 Statement of Future General Obligation Bond Debt Requirements by Year Based on Bond Debt Schedule V 69 Statement of Future Water Revenue Bond Requirements by Year on Outstanding Debt Schedule VI 70 Huntington Beach Public Facilities Corporation - Statement of Bonded Debt Schedule VII 71 ' Huntington Beach Public Facilities Corporation - Statement of Future Debt Requirements by Year Based on Bonded Debt Schedule VIII 72 Parking Authority of the City of Huntington Beach Statement of Bonded Debt Schedule IX 73 ' Parking Authority of the City of Huntington Beach - Statement of Future Debt Requirements by Year Based on Bond Debt Schedule IX 73 City of Huntington Beach Public Facilities Corporation Accountants ' Report 74 Financial Statements ' Combined Balance Sheet 75 Combined Statement of Earnings and Retained Earnings 76 Combined Statement of Changes in Financial Position 77 ' Notes to Financial Statements 78 City of Huntington Beach Parking Authority ' Accountants ' Report 33 t iii CITY OF HUNTINGTON BEACH , ANNUAL FINANCIAL REPORT ' TABLE OF CONTENTS Exhibit Page ' City of Huntington Beach Parking Authority, Continued Financial Statements ' Balance Sheet 84 . Statement of Earnings and Retained Earnings 85 , Statement of Changes in Financial Position 86 Notes to Financial Statements 87 iv