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HomeMy WebLinkAboutFY 1981/1982 Comprehensive Annual Financial Report FY Ended CITY OF HUNTINGTON .BEACH STATE OF CALIFORNIA N A NUAL FINANCIAL HUNTINGTON BEACH REPORT . FOR THE YEAR ENDED JUNE 30,1982 The undesignated General Fund balance increased from $1 ,028, 111 in FY-1981 to $1 ,546,489 in FY-1982, an increase of $518,378 or 33.5%. The City continues to fund accrued employee vacation and sick leave which increased from $2,050,501 in FY-1981 to $2,282,473 in FY-1982, an increase of $231 ,972 or 10.2%. Assessed valuation increased by $4, 145,379,439 to $5,219,684, 140 in FY-1982 -- a 385.9% increase. In FY-1983 it is anticipated the assessed valuation will increase to $5,883,904,006, an increase of $664,219,866 or 12.7%. A comparison of assessed valuation over the last three years with anticipated FY-1983 assessed valuation is as follows: Assessed Change from Prior Year Fiscal Year Valuation Amount Percent 1983 $5,883,904,006 $ 664,219,866 12.7% * 1982 5,219,684, 140 4, 145,379,439 385.9 1981 1,074,304,701 90,377,031 9.2 1980 983,927,670 152, 144,050 18.3 * The method used to determine Assessed Valuation was changed for FY-1982. Previously, assessed valuation was 25% of market value. The new method is 100% of market value. Therefore, to compute the change from the previous year, the FY 1981 assessed valuation should be stated at 4,297,218,804 (1,074,304,701 x 4). The change then would be $922,465,336 or 21 .5%. Outstanding general obligation bonds as of June 30, 1982 totaled $4, 150,000. This is comprised in total of 1963 Park Bonds. There is, as of June 30, 1982, $1,566,000 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 totaled $0.04635 per $100 of assessed valuation. This is in addition to the City's share of the overall $4.00 per $100 of assessed valuation permitted as a result of the passage and implementation of Proposition 13. For fiscal year 1983, the tax rate necessary to provide funds for the voter approved debt will be $0.05756 per $100 of assessed valuation. This, in addition to the City's portion of the overall tax rate of $1.00 per $100 of assessed value, will be the City's total property tax revenue. Comparative data for the City's Water Utility operation for the past two years is as follows: 1982 1981 Total operating revenue $5,739,349 $5,814, 133 Net income 81 ,797 1,098,393 The City completed the reconstruction of the accounting records for fixed assets of the enterprise funds and of the General Fixed Assets Account Group. This resulted in the restatement of the beginning balances, which caused the reduction in net income in the Water Utility net operations. A supplemental information section has been included in this report which contains comprehensive statistical data. Such data is presented so as to relate physical , economic, social , and political characteristics of our City which should give the readers of this report a more broad and complete understanding of the City and its financial operations. This financial report has been changed to report in conformance with Statement I of the National Council on Governmental Accounting. In accordance with Section 616 of the City Charter, the City Council shall employ at the beginning of each fiscal year, an independent certified public accountant who should examine all the City's accounts and the results reported to the City Council . The opinion of Arthur Young S Company, Certified Public Accountants, is included in this report. I wish to express my appreciation to the members of the Administrative Services Department without whose dedicated efforts this report would not be possible. In addition, I would express my appreciation to you and the City 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, J"'a'-4 Frank B. Argue to Chief of Administrative Services FBA:dp CITY OF HUNTINGTON BEACH ELECTED OFFICIALS CITY COUNCIL Ruth S. Bailey Councilperson Ruth E. Finley Councilperson Jack Kelly Councilperson Robert P. Mandic, Jr. Mayor Donald A. MacAllister Mayor Pro Tem Ronald R. Pattinson Councilperson John A. Thomas Councilperson OTHER Gail Hutton City Attorney Warren G. Hall City Treasurer Alicia M. Wentworth City Clerk ADMINISTRATIVE OFFICIALS Charles W. Thompson City Administrator Frank B. Arguello Chief of Administrative Services James Palin Development Services Director Paul E. Cook Director of Public Works Vincent G. Moorhouse Community Services Director Raymond C. Picard Fire Chief Earle W. Robitaille Police Chief CITY OF HUNTINGTON BEACH ANNUAL FINANCIAL REPORT JUNE 30, 1982 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Elected City Officials Departments of the City Exhibit Page FINANCIAL SECTION Report of Certified Public Accountants Combined Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups I 1 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds II 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - Governmental Fund Types Ili b Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types IV 10 Combined Statement of Changes in Financial Position - All Proprietary Fund Types V 12 Notes to Combined Financial Statements 14 Additional Financial Information: Combining Financial Statements Statement Page General Fund: Statement of Appropriations, Expenditures and Encumbrances I 31 Special Revenue Funds: Combining Balance Sheet II 32 Combining Statement of Revenues, Expenditures and Changes in Fund Balances III 34 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual IV 36 Statement Page FINANCIAL SECTION (continued) Additional Financial Information (continued): Combining Financial Statements (continued) Debt Service Funds: Combining Balance Sheet V 42 Combining Statement of Revenues, Expenditures and Changes in Fund Balances VI 43 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual VII 44 Enterprise Funds: Combining Balance Sheet V111 45 Combining Statement of Revenues, Expenses and Changes in Retained Earnings IX 47 Combining Statement of Changes in Financial Position X 49 Internal Service Funds: Combining Balance Sheet XI 50 Combining Statement of Revenues, Expenses and Changes in Retained Earnings XII 51 Combining Statement of Changes in Financial Position XI11 52 Expendable Trust Funds: Combining Balance Sheet XIV 53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances XV 54 STATISTICAL EXHIBITS (Unaudited) Schedule Page Statement of General Fund Revenues - Other than Property Taxes - Last Ten Fiscal Years I >5 Statement of General Fund Expenditures - Last Ten Fiscal Years II 56 Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bonded Debt to Assessed Value and Per Capita - Last Ten Fiscal Years III 57 Statement of Tax Delinquencies and Impounds - Last Ten Fiscal Years IV 58 Statement of Future General Obligation Bonded Debt Requirements by Year Based on Bonded Debt V 5y Schedule Page STATISTICAL EXHIBITS (Unaudited) (continued) Statement of Future Water Revenue Bond Requirements by Year Based on Outstanding Debt VI 60 Huntington Beach Public Facilities Corporation Statement of Bonded Debt VII bl Huntington Beach Public Facilities Corporation Statement of Future Debt Requirements by Year Based on Bonded Debt VIII 62 Parking Authority of the City of Huntington Beach Statement of Bonded Debt IX 63 Parking Authority of the City of Huntington Beach Statement of Future Debt Requirements by Year Based on Bonded Debt X 63 City of Huntington Beach Miscellaneous Statistics X1 64 City Of Huntington Beach A ual Fiscal Year Ended June 30, 1982 F it • 10 n ia Report DEPARTMENT OF ADMINISTRATIVE SERVICES Frank B. Arguello, Chief HUNTINGTON BEACH HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION ANNUAL FINANCIAL REPORT JUNE 30, 1982 TABLE OF CONTENTS FINANCIAL SECTION Exhibit Page Report of Certified Public Accountants Financial Statements: Combined Balance Sheet I 1 Combined Statement of Earnings and Retained Earnings II 2 Combined Statement of Changes in Financial Position III 3 Notes to Combined Financial Statements 4 L Combined Financial Statements. EXHIBIT I HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED AND COMBINING BALANCE SHEET June 30, 1982 Civic Total Center Project Library Project Assets Restricted assets: Time certificates of deposit $ 2,044,909 $ 1 ,334,870 $ 710,039 Temporary investments in U.S. government securities, at cost (market: $1 ,558,656) 1 ,589,302 1 ,190,802 398,500 Accrued interest receivable _ 137,611 67,823 69,788 Total restricted assets $3,771 ,822 $ 2,593,495 $1 ,178,327 Long term leases receivable less unearned income of $ 8,271 , 144 (Note 3) 11 ,791 ,256 8,050,039 3,741 ,217 Total assets $15,563,078 $10,643,534 $4,919,544 Liabilities and Retained Earnings Current liabilities payable from restricted assets: Accrued interest $ 301,471 $ 223,381 $ 78,Oy0 Current installment of bonds payable (Note 4) 490,000 330,000 160,000 Total current liabilities payable from restricted assets 791 ,471 553,381 238,090 Deferred rental income 68,473 68,473 -- Bonds payable, net of current installment (Note 4) 12,530,000 8,580,000 3,950,000 Total liabilities 13,389,944 9,201 ,854 4,188,090 Retained earnings 2,173,134 1 ,441,680 731 ,454 Total liabilities and retained earnings $15,563,078 $10,643,534 $4,919,544 See accompanying notes to combined financial statements. 1 EXHIBIT II HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED AND COMBINING STATEMENT OF EARNINGS AND RETAINED EARNINGS YEAR ENDED JUNE 30, 1982 Civic Total Center Project Library Project Operating revenue: Lease income: Lease payments received $1 ,253,900 $ 854,900 $ 399,000 Less amortization of leases receivable (349,990) (239,500) ( 110,490) Interest income on capital leases 903,910 615,400 288,510 Operating expenses (1 ,623) (268) (1 ,355) Net operating income 902,287 615, 132 287, 155 Non-operating revenue: Interest earned 497,746 339,324 158,422 Total operating and non-operating income 12400,033 954,456 445,577 Non-operating expenses: Interest expense (725,946) (490,558) (235,388) Net earnings 674,087 463,898 210,189 Retained earnings at July 1 , 1981 1 ,499,047 977,782 521 ,265 Retained earnings at June 30, 1982 $2,173, 134 $14441 ,680 $ 731,454 See accompanying notes to combined financial statements. 2 ARTHUR YOUNG & COMPANY The Honorable Board of Directors SUITE9 00 3200 PARK CENTER DRIVE Huntington Beach Public Facilities Corporation P. 0. BOX 2410 Huntington Beach, California COSTA MESA, CALIFORNIA 92626 We have examined the combined balance sheet of the Huntington Beach Public Facilities Corporation at June 30, 1982 and the related combined statements of earnings and retained earnings and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the statements mentioned above present fairly the financial position of the Huntington Beach Public Facilities Corporation at June 30, 1982 and the results of operations and changes in financial position for the year then ended in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. September 16, 1982 d r Financial Section OFFICE OF THE CHIEF OF ADMINISTRATIVE SERVICES FRANK B. ARGUELLO, CHIEF Mr. Charles W. Thompson City Administrator City of Huntington Beach Dear Mr. Thompson: Submitted herewith is the Department of Administrative Services Annual Report containing the City's financial statements for the fiscal year ended June 30, 1982. 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 totaled $45,016,533 in FY-1982, an increase of $2,626,388, or 5.8% when compared to FY-1981. The revenue from various sources and the changes as compared with FY-1981 are as follows: Percent Change from FY-1981 Source Amount of Total Amount Percent General Property Taxes $12,944,408 28.8% $1 ,693,618 13.1% Other Local Taxes 19,040,227 42.3 2,045,889 10.7 Licenses and Permits 2,736,785 6.0 (247,518) (9.0) Fines and Forfeitures 1 ,515,914 3.3 (10,158) (.7) Use of Money and Property 3,223,113 7.2 670,476 20.8 Revenue from Other Agencies 2,671,003 5.9 (1 ,824,325) (68.3) Charges for Current Services 1 ,153,439 2.6 (228,616) (19.8) Other Revenue 529,704 1.2 163,579 30.9 Transfers from Other Funds 1 ,201,940 2.7 363,443 30.2 Total $45,016,533 100.0% $2,626,388 5.8% Gross expenditures and encumbrances for General Fund purposes totaled $44,988,467 in FY-1982 -- an increase of $3,565,628 or 7.9% over FY-1981. fi EXHIBIT I PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH BALANCE SHEETS JUNE 30, 1982 and 1981 Assets: 1982 1981 Current assets: Cash and term deposits $ 181 ,366 $ 163,863 Receivables: Accrued interest receivable 41 ,422 58,307 Due from other entities 1 ,808 -- Total receivables 43,230 58,307 Total current assets 224,596 222, 170 Restricted assets: . Investments, at cost which approximates market (Note 3) 895,037 764,255 Cash with fiscal agent 12,062 7,594 Total restricted assets 907,099 771,849 Fixed assets, at cost: Land 371,065 371,065 Improvements 1 ,694,089 1 ,694,089 Less allowance for depreciation (893,153) (821 ,959) Net fixed assets 1,172,001 1 ,243, 195 Total assets $2,303,696 $2,237,214 Liabilities and Retained Earnings: Current liabilities payable from restricted assets): Accrued interest payable 26,092 27,508 Current installment of bonds payable (Note 3) 90,000 85,000 Matured interest payable 12,062 7,594 Total current liabilities 128, 154 120,102 Bonds payable, net of current installment (Note 3) 1,420,000 1,510,000 Total liabilities 1,548, 158 1,630, 102 Retained earnings 755,542 607, 112 Total liabilities and retained earnings $2,303,696 $2,237,214 See accompanying notes to financial statements. 1 EXHIBIT II PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENTS OF EARNINGS AND RETAINED EARNINGS YEARS ENDED JUNE 30, 1982 and 1981 1982 1981 Operating revenue: Rentals (Note 2) $170,050 $170,050 Operating expenses: Depreciation 71,194 71,194 Parking meters 3,225 -- Total operating expenses 74,419 71,194 Net operating income 95,631 98,856 Non-operating revenue: Interest earned 131 ,781 114,847 Total operating and non-operating income 227,412 213,703 Non-operating expenses: Interest expense (78,982) (83,234) Net earnings 148,430 130,469 Retained earnings, beginning of year 607,112 476,643 Retained earnings, end of year $755,542 $607,112 See accompanying notes to financial statements. 2 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH ANNUAL FINANCIAL REPORT JUNE 30, 1982 TABLE OF CONTENTS FINANCIAL SECTION Exhibit Page Report of Certified Public Acountants Financial Statements: Balance Sheets I 1 Statements of Earnings and Retained Earnings II 2 Statements of Changes in Financial Position III 3 Notes to Financial Statements 4 Parking Authority Of The City Of Huntington Beach Financial Statements June 30, 1982 and 198.1 ( With Accountants' Report Thereon ) Q3'�LI U�MD ARTHUR YOUNG & COMPANY SUITE 900 The Honorable Members of the Parking Authority 3200 PARK CENTER DRIVE City of Huntington Beach P. O. BOX 2410 Huntington Beach, California COSTA MESA, CALIFORNIA 92626 We have examined the balance sheet of the Parking Authority of the City of Huntington Beach at June 30, 1982 and the related statements of earnings and retained earnings and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The financial statements of the Parking Authority of the City of Huntington Beach for the year ended June 30, 1981 were examined by other auditors whose report dated September 25, 1981 expressed an unqualified opinion on those statements. In our opinion, the 1982 statements mentioned above present fairly the financial position of the Parking Authority of the City of Huntington Beach at June 30, 1982 and the results of operations and changes in financial position for the years then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceeding year. September 16, 1982 EXHIBIT III HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION COMBINED AND COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1982 Civic Total Center Project Library Project Source of funds: Funds provided from operations: Net earnings $ 674,087 $ 463,898 $210,189 Amortization of leases receivable 349,990 239,500 110,490 $1 ,024,077 $ 703,398 $320,679 Use of funds: Reclassification and redemption of bonds payable $ 490,000 $ 330,000 $160,000 Decrease in deferred rental income 4,029 4,029 -- Increase in working capital 530,048 369,369 160,679 $1,024,077 $ 703,398 $J201679 Changes in components of working capital: Increase (decrease) in restricted assets: Time certificates of deposit $ 946,055 $ 729,960 $216,055 Temporary investments in government securities (427,118) (3469427) (80,691) Accrued interest receivable 26,415 (7,430) 33,845 545,352 376,103 169,249 Decrease ( increase) in current liabilities: Accrued interest payable 14,696 13,266 1,430 Current installment of bonds payable 00,000) (20 000) (10 000) 05,304) Increase in working capital $ 530,048 $ 3692369 $160,679 See accompanying notes to combined financial statements. 3 HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 1982 ( 1) Summary of Significant Accounting Policies The following is a summary of significant accounting policies used by the Huntington Beach Public Facilities Corporation (Corporation) . Basis of Accounting The accompanying combined financial statements of the Corporation have been prepared using the accrual basis of accounting. Temporary Investments Investments are stated at cost. Such investments consist of Federal Government backed securities and are adjusted for amortization of purchase premium or discount. Bond Accounts Under the provisions of the bond indenture agreements, the Corporation is required to maintain separate accountability for various types of funds received. A description of these funds, which are combined for financial statement presentation, is as follows: Account Source Use Reserve Fund Bond proceeds and rental revenue fund Bond principal and interest Construction Fund Bond proceeds Cost of project Interest During Construction Fund Bond proceeds First twenty-six months' interest on bonds 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 4 ( 1) Summary of Significant Accounting Policies, Continued Upon completing construction, separate rental revenue funds were established to account for all lease and other revenue from the City of Huntington Beach for the Civic Center and Library. The separate construction funds for the Civic Center and Library projects continue to account 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, to the respective reserve funds in amounts necessary to restore a balance equal to one year's lease revenue; third, to the administrative expense funds in amounts equal to the budgeted administrative expenses of the Corporation; fourth, to the bond redemption funds. Money in the bond redemption fund is used to correct deficiencies in the debt service funds, reserve funds or administrative expense funds. Money remaining after meeting the minimum requirements of the bond agreements may be used to purchase or redeem outstanding bonds in order to make improvements or to reimburse the City of Huntington Beach for rent paid to the Corporation. (2) Organization The Huntington Beach Public Facilities Corporation was incorporated under the laws of the State of 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). (3) Leases The Corporation has entered into two lease and sublease agreements with the City of Huntington Beach. The terms of the leases are as follows: (a) Civic Center lease - This involves a lease and sublease agreement with the City of Huntington Beach for the Huntington Beach Civic Center. The site occupied by the Civic Center is owned by the City and was leased to the Corporation for an advance rental of $350,000. The term of the lease 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 years or (b) until the bonded indebtedness incurred by the Corporation to construct the Civic Center has been paid. (b) Central Library lease - This involves a lease and sublease agreement with the City of Huntington Beach for the Central Library. The site occupied by the Central Library is owned by the City and was leased to the Corporation for an advance rental of $300,000. The term of the lease is from September 1, 1972 to one week after the termination of the sublease described in the next paragraph. 5 (3) Leases, Continued The Corporation has subleased the Central Library site and building constructed thereon to the City for an annual rental of $399,000. This sublease commenced February 15, 1975 and extends for a term of the earlier of: (a) thirty years or (b) until the bonded indebtedness incurred by the Corporation to construct the Central Library has been paid. Under both agreements, the City is required to pay all taxes, insurance, administrative and maintenance costs associated with the leased facilities. At the conclusion of the lease agreements, title to the leased facilities will be transferred to the City at no additional cost. Proper accounting treatment requires that such leases be treated as financing leases. Under the financing method, the excess of aggregate rentals over the cost of the leased property is considered compensation to the lessor for the use of funds invested. At June 30, 1982, leases receivable from the City of Huntington Beach for the Civic Center and Central Library facilities total $12,141 ,246, net of unearned income. The site advances are included in the long term leases receivable and are amortized over the term of the leases. (4) Long-term Debt A summary of the Corporation's bonded indebtedness as of June 30, 1982 is as follows: Maturities Date of Interest Original Outstanding Annual Period Bond issue issue rates issue June 30, 1982 requirements covered Civic Center: Leasehold Mortgage Bonds, Varying amounts from First Issue (a) January, 1972 5.00 - 7.00% $11 , 100,000 $8,910,000 $200,000 to $890,000 1975-1998 Central Library: Leasehold Mortgage Bonds, Varying amounts from Second Issue (b) September, 1972 5.00 - 7.00% _ 5L000,000 4, 110,000 $105,000 to $385,000 1975-1997 $16,100,000 $13,020,000 (a) The $11 , 100,000 principal amount of Leasehold Mortgage Bonds, First Issue (Bonds) are dated January 15, 1972 and were issued as coupon bonds in $5,000 denominations. These serial bonds mature annually on January 15. Interest is payable semi-annually on January 15 and July 15. Bonds maturing on or after January 15, 1983 (a principal amount of $9,090,000) are subject to 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 principal 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. 6 (4) Long-Term Debt, Continued (b) The $5,000,000 principal amount of Leasehold Mortgage Bonds, Second Issue (Bonds) are dated September 1 , 1972 and were issued as coupon bonds in $5,000 denominations. These serial bonds mature annually on September 1. Interest is payable semi-annually on March 1 and September 1. Bonds maturing on or prior to September 1 , 1982 are generally not subject to call and redemption prior to their fixed maturity date. Bonds maturing 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 or on any interest payment date thereafter. Call price of the Bonds shall be an amount equal to the principal amount redeemed plus a premium equal to 1/4 of 1 percent of the principal amount redeemed, plus 1/4 of 1 percent for each year or fraction of a year from the redemption date to the maturity date of the Bonds. In no event shall the premium exceed 4 percent. The following is a schedule of required principal payments during the next five fiscal years and thereafter: Civic Year Ended Center Library June 30 Project Project Total 1983 $ 330,000 $ 1609000 $ 490,000 1984 360,000 170,000 530,000 1985 380,000 180,000 560,000 1986 400,000 1901000 590,000 1987 430,000 200,000 630,000 1988 7,010,000 3,210,000 10,220,000 $8,910,000 $4,110,000 $13,020,000 7 CITY OF HUNTINGTON BEACH EXHIBIT I Combined Balance Sheet - All Fund Types and Account Groups June 30, 1982 Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups Fund Type General General Special Debt Enterprise Internal Expendable Fixed Long-term Totals General Revenue Service Note 12 Service Trust Assets Uebt (Memo only) Assets Cash and term deposits $6,493,721 $12,222,430 $ 9,668 $ 4,853,645 $5,247,984 $1,626,069 $ $ $ 30,453,517 Accounts receivable, net of allowance 169,765 -- -- 375,688 -- -- -- -- 545,453 Property taxes receivable, net of allowance for uncollectible taxes ($2,223,169) 467,468 -- 12,152 -- -- -- -- -- 479,62U Notes receivable, net of allowance -- 13,547 -- -- -- 378,879 -- -- 952,426 Interest receivable 83,839 153,349 -- 67,105 67,455 -- -- -- 371 ,748 Deposits -- -- -- 32,269 -- -- -- -- 32,265 Investments, at cost which approximates market (Note 6) 109,811 -- -- -- -- -- -- -- 109,811 Due from Redevelopment Agency 184, 150 -- -- -- -- -- -- -- 184,150 Due from other funds -- -- -- -- 17,534 -- -- -- 14534 Due from other governmental units 672,315 736,174 -- -- -- -- -- -- 1 ,408,483 Prepaid expenses 83,523 -- -- -- -- -- -- -- 83,.523 Amount available in debt service fund -- -- -- -- -- -- -- 21 ,820 21 ,820 Amount to be provided for debt retirement -- -- -- -- -- -- -- 4,128,180 4,128, 180 Amount to be provided under financing leases (Note 4) -- -- -- -- -- -- -- 12,129,768 12,129,768 Leased facilities under financing leases (Note 4) -- -- -- -- -- -- 13,913,304 -- 13,913,JU4 Property, plant and equipment, net of allowance for depreciation (Note 3) -- -- -- 31,865,711 -- -- 39, 167,049 -- 71 ,032,760 Restricted assets - cash and investments -- -- -- 511,600 -- -- -- -- 511,600 Total assets $8,264,592 $13,125,500 $21 ,820 $37,706,018 $5,332.973 $2,604,948 $53,080,353 $16,279,768 $136,415,972 See accompanying notes to combined financial statements. 1 - CITY OF HUNTINGTON BEACH EXHIBIT I Combined Balance Sheet - All Fund Types and Account Groups June 30, 1982 Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups Fund Type General General Special Debt Enterprise Internal Expendable Fixed Long-term Totals General Revenue Service Note 12 Service Trust Assets Uebt Memo only) Liabilities Accounts payable $ 716,758 $255,686 $ -- $ 328,815 $ 2,932 $ -- $ -- $ -- $ 1 ,3U4, 191 Accrued payroll 1,067,019 5,007 -- 133,416 1 ,170 -- -- -- 1,206,612 Insurance claims payable -- -- -- -- 3,042,359 -- -- -- 3,042,359 Deposits 299,354 1,717 -- 367,559 -- 127,350 -- -- 795,y60 Due to other funds 16,833 65 -- 636 -- -- -- -- 17,534 Accrued interest payable -- -- -- 46,325 -- -- -- -- 46,325 Current installment of notes payable (Notes 8, 9) -- -- -- 56,810 -- 6,541 -- -- e3071 Deferred rental and other income 661 ,930 -- -- -- -- -- -- -- 661 ,93U Current liabilities (payable from restricted assets) : Current installment of bonds, payable (Note 7) -- -- -- 150,000 -- -- -- -- 150,000 Accrued interest payable -- -- -- 12,725 -- -- -- -- 12,725 Obligation under financing leases (Note 4) -- -- -- -- -- -- -- 12, 129,768 12, 129,76b Bonds, net of current installment (Note 7) -- -- -- 1 ,416,000 -- -- -- 49150,000 5,566,OU0 Notes payable, net of current installment (Notes 8, 9) -- -- -- 2,298,582 -- -- -- -- 2,298,582 Total liabilities 2,7�1 �9T+ 2 2T,475 -- VIM 3,O ,Tim 133—',�91 -- 16,279,768 27,295,357 Commitments and contingencies - (Note 4, 5, 9, 10) 2 CITY OF HUNTINGTON BEACH EXHIBIT I Combined Balance Sheet - All Fund Types and Account Groups June 30, 1982 Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups Fund Type General General Special Debt Enterprise Internal Expendable Fixed Long-Term Totals General Revenue Service Note 11 Service Trust Assets Uebt (Memo only) Fund Equity (Note 2) Contributed capital : In aid of construction -- -- -- 28,005,111 -- -- -- -- 28,005,111 From General Fund -- -- -- 1 ,359,932 -- -- - 1,.359,932 Investment in general fixed assets -- -- -- -- -- -- 53,080,353 -- 53,080,353 Retained earnings: Reserved for revenue bond retirement -- -- -- 348,875 -- -- -- -- 348,875 Reserved for future insurance claims -- -- -- -- 750,000 -- -- -- 750,OOU Unreserved -- -- -- 3,181,232 1 ,536,512 -- -- -- 4,.717,744 Fund balance: Reserved for encumbrances 894,867 1 ,644,968 -- -- -- -- -- -- 2,539,835 Reserved for amounts due beyond one year 753,869 518,757 -- -- -- -- -- -- 1,z72,626 Reserved for reimbursement agreements (Note 5) -- 635,410 -- -- -- -- -- -- 535,410 Reserved for disaster relief -- 92,249 -- -- -- -- -- -- 92,249 Unreserved: Designated For: Vacation and sick leave 2,282,473 -- -- -- -- -- - 2,262,473 Special enforcement 25,000 -- -- -- -- -- -- - 25,000 Future development -- 78,226 -- -- -- -- -- -- 78,226 Undesignated (Note 10) 1 ,546,489 9,893,415 21 ,820 -- -- 2,471 ,057 -- -- 13,932,761 Total fund equity 5,502,698 12,863,025 21,820 32,895,150 2,286,512 2,471,057 53,080,353 -- 109,120,615 Total liabilities and fund equity $8,264,592 $13,125,500 $212820 $37,706,018 $5,332,973 $2,604,948 $53,080,353 $16,279,7b8 $13b,415,972 See accompanying notes to combined financial statements. 3 CITY OF HUNTINGTON BEACH EXHIBIT II Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Year Ended June 30, 1982 Governmental Fund Types Fiduciary Fund Types Special Debt Expendable Totals General Revenue Service Trust (Memo only) Revenues: General property taxes $12,944,408 $ -- $419,638 $ -- $13,364,046 Other local taxes 19,040,227 -- -- -- 19,040,227 Licenses and permits 2,736,785 266, 122 -- -- 3,002,907 Fines and forfeitures 1 ,515,914 -- -- -- 1 ,515,914 Use of money and property 3,223, 113 1 ,779,365 -- 373,123 59375,601 Revenue from other agencies 2,671,003 6,438,287 -- -- 9, 109,290 Charges for current services 1 ,153,439 162,839 -- -- 1 ,316,278 Contributions to deferred compensation plan -- -- -- 311 ,455 311 ,455 Other revenues 529,704 -- -- -- 529,704 Total revenues 43,814,593 826469613 419,638 684,578 53,565,422 Expenditures: Administrative 4,493,484 211 -- -- 4,493,695 Support 3,654,024 45,665 -- -- 3,699,689 Community services 15,516,826 1 ,052,154 -- -- 16,568,980 Public safety 20,429,266 1 ,077,050 -- -- 21 ,506,316 Highways and streets -- 2,656,408 -- -- 2,656,408 Drains and sewers -- 532,055 -- -- 532,055 Park development -- 1 ,684,621 -- -- 1 ,664,621 Paid to participants in employee deferred compensation plan -- -- -- 65,442 65,442 Loan subsidies and loan losses -- 38,575 -- -- 38,575 Grants -- 1 ,256,813 -- -- 1 ,256,.813 Miscellaneous -- 143 461 -- 604 Redemption of matured bonds -- -- 210,000 -- 210,000 Interest -- -- 260,525 -- 260,525 Total expenditures 44,093,600 8,343,695 470,986 65,442 52,973,723 4 CITY OF HUNTINGTON BEACH EXHIBIT II Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Year Ended June 30, 1982 Governmental Fund Types Fiduciary Fund Type Special Debt Expendable Total General Revenue Service Trust (Memo only) Excess (deficiency) of revenues - over expenditures (279,007) 302,918 (51,348) 619, 136 591 ,699 Other financing sources (uses) : Operating transfers in (out) 1 ,201 ,940 (814,521) -- -- 387,419 Excess (deficiencies) of revenue and operating transfers in over expenditures and operating transfers out 922,933 (511 ,603) (51 ,348) 619, 136 379, 116 Fund balance at June 30, 1981 4,785,927 13,168,466 73,168 1 ,851 ,921 19,879,482 Deficit transfer ( in) out (Note 11) (206,162) 206, 162 -- -- -_ Fund balance at June 30, 1982 $5,502,698 $12,863,025 $ 21 ,820 $2,471 ,057 $20 -858,600 See accompanying notes to combined financial statements. 5 CITY OF HUNTINGTON BEACH EXHIBIT III Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual Governmental Fund Types Year Ended June 30, 1982 General Fund Special Revenue Funds Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: General property taxes $13, 139,170 $12,944,408 $ (194,762) $ -- $ -- $ -- Other local taxes 18,887,000 19,040,227 153,227 -- -- -- Licenses and permits 3,293,000 2,736,785 (556,215) 1 ,660,000 266, 122 ( 1 ,393,878) Fines and forfeitures 1 ,545,000 1 ,515,914 (29,086) -- -- -- Use of money and property 2,710,000 3,223,113 513, 113 1 ,267,500 1 ,779,365 511,865 Revenue from other agencies 3,206,000 2,671 ,003 (534,997) 10,446,683 6,438,287 (4,008,396) Charges for current services 1 ,796,914 1 , 153,439 (643,475) 70,000 162,839 92,839 Other revenues 44,200 529,704 485,504 10,000 -- (10,000) Total revenues 44,621 ,284 43,814,593 (806,691) 13,454, 183 8,646,613 (4,807,570) Expenditures: Administrative 6,407,115 4,574,928 1 ,832,187 173,350 249 173,101 Support 3,960,258 3,684,863 275,395 83,024 88,684 (5,660) Community services 16,786,758 16,088,990 697,768 1 ,715,678 1,356,755 358,923 Public safety 20,890,033 20,639,686 250,347 1 ,461 ,695 1,440,729 20,966 Highway and streets -- -- -- 5,796,702 2,693,062 3, 103,640 Drains and sewers -- -- -- 2,469,411 835,363 1 ,634,048 Park development -- -- -- 4,676,778 2,078,960 2,597,818 Loan subsidies and loan losses -- -- -- -- 38,575 (38,575) Grants -- -- -- 4,808,069 1 ,456, 143 3,351 ,926 Miscellaneous -- -- -- 9,948 143 9,805 Total expenditures 48,044, 164 44,.988,467 3,055,697 21 ,194,655 9,9881663 11 ,205,992 6 M � m m m m m m CITY OF HUNTINGTON BEACH EXHIBIT III Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual Governmental Fund Types Year Ended June 30, 1982 General Fund Special Revenue Funds Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Excess (deficiencies) of revenues over expenditures (3,422,880) (1 ,173,874) 2,249,006 (7,740,472) (1 ,342,050) 6,398,422 Other financing sources (uses) : Operating transfers in (out) 1 ,414,000 1,201 ,940 (212,060) ( 611 ,800) (814,521 ) (202,721 ) Excess (deficiencies) of revenue and operating transfers in over expenditures and operating transfers out (2,008,880) 28,066 2,036,946 (8,352,272) (2,156,571 ) 6, 195,701 Fund balance June 30, 1981 4,785,927 4,785,927 -- 13,168,466 13, 168,466 -- Deficit transfers ( in) out -- (206,162) (206,162) -- 206, 162 206,162 Fund balance at June 30, 1982 2,777,047 4,607,831 1 ,830,784 4,816,194 11 ,218,057 6,401 ,863 budgetary basis Encumbrances outstanding at June 30, 1982 894,867 894,867 -- 1 ,644,968 1 ,644,968 -- Fund balance at June 30, 1982 GAAP basis $3,671 ,914 $5,502,698 $1 ,830,784 $62461 ,162 $12,863,025 $6,401 ,863 See accompanying notes to combined financial statements. 7 CITY OF HUNTINGTON BEACH EXHIBIT III Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual Governmental Fund Types Year Ended June 30, 1982 Debt Service Fund Total (Memo only) Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: General property taxes $475,000 $419,638 $(55,362) $13,614, 170 $13,364,046 $ (250, 124) Other local taxes -- -- 18,887,000 19,040,227 153,227 Licenses and permits -- -- -- 4,953,000 3,002,907 (1 ,950,093) Fines and forfeitures -- -- -- 1,545,000 1 ,5159914 (29,086) Use of money and property -- -- -- 3,977,500 5,002,478 1 ,024,978 Revenue from other agencies -- -- -- 13,652,683 9,109,290 (4,543,393) Charges for current services -- -- -- 1,866,914 1 ,316,278 (550,636) Other revenues -- -- -- 54,200 529,704 475,504 Total revenues 475,000 419,638 (55,362) 58,550,467 52,880,844 (5,669,623) Expenditures: Administrative -- -- -- 6,580,465 4,575, 177 2,005,288 Support -- -- -- 4,043,282 3,773,547 269,735 Community services -- -- -- 18,502,436 17,445,745 1 ,056,691 Public safety -- -- -- 22,351 ,728 22,080,415 271 ,313 Highways and streets -- -- 5,796,702 2,693,062 3,103,640 Drains and sewers -- -- -- 2,469,411 835,363 1 ,634,048 Park development -- -- -- 4,676,778 2,078,960 2,597,818 Loan subsidies and loan losses -- -- -- -- 38,575 (38,575) Grants -- -- 4,808,069 1,456,143 3,351 ,926 Miscellaneous 500 461 39 10,448 604 9,844 Redemption and matured bonds 205,000 210,000 (5,000) 205,000 210,000 (5,000) Interest 265,000 260,525 4,475 265,000 260,525 4,475 Total expenditures 470,500 470,986 (486) 69,709,319 55,448, 116 14,261 ,203 8 CITY OF HUNTINGTON BEACH EXHIBIT III Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual Governmental Fund Types Year Ended June 30, 1982 Debt Service Fund Total (Memo only) Budgetary Variance - Budgetary Variance - Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Excess (deficiencies) of revenues over expenditures 4,500 (51 ,348) (55,848) (11 , 158,852) (2,567,272) 8,591 ,5bu Other financing sources (uses): Operating transfers in (out) -- -- -- 802,200 387,419 (414,781) Excess (deficiencies) of revenues and operating transfers in over expenditures and operating transfers out 4,500 (51 ,348) (55,848) (10,356,652) (2,179,853) 8, 17b,799 Fund balance at June 30, 1981 73,168 73, 168 -- 18,027,561 18,027,561 -- Deficit tranfers in (out) -- -- -- -- -- -- Fund balance at June 30, 1982 77,668 21,820 (55,848) 7,670,909 15,847,708 8, 176,799 budgetary basis Encumbrances outstanding at June 30, 1982 -- -- -- 2,539,835 2,539,835 -- Fund balance at June 30, 1982 GAAP basis $77,668 $21 ,820 $(55,848) $10,210,744 $18,387,543 $8, 176,799 See accompanying notes to combined financial statements. 9 CITY OF HUNTINGTON BEACH EXHIBIT IV Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year Ended June 30, 1982 Enterprise Internal Total Note 12 Service (Memo only) Operating revenues: Charges for current services $5,640,482 $1 ,907,258 $7,547,740 Use of money and property 183,683 -- 183,683 Other operating revenue 98,867 -- 98,867 Total operating revenues 5,923,032 1 ,907,258 7,830,290 Operating expenses: Source of supply 1 ,164,908 -- 1 ,164,908 Pumping expense 1 ,418,205 -- 1,418,205 Water treatment 34, 158 -- 34, 158 Transmission and distribution 422,049 -- 422,049 Administrative and general 1 ,018,794 136,049 1 ,154,843 Contribution to General Fund in lieu of taxes 844,197 -- 344,197 Depreciation 1 ,152,105 -- 1 ,152,105 Workers' compensation claims -- 1 ,437,758 1 ,437,758 Employee medical claims -- 1 ,109,035 1 ,109,035 Liability claims -- 702,223 702,223 Other -- 4,621 4,621 Total operating expenses 6,054,416 3,389,686 9,444, 102 10 Huntington Beach Public Facilities Corporation Financial Statements dune 30, 1982 ( With Accountants' Report Thereon. ) M EXHIBIT III PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENTS OF CHANGES IN FINANCIAL POSITION YEARS ENDED JUNE 30, 1982 and 1981 1982 1981 Sources of working capital : Net earnings $1489430 $130,469 Item which does not use working capital : Depreciation of land improvements 71094 71094 Decrease in working capital 5,626 -- $225,250 $201 ,663 Uses of working capital : Current installment of bonds payable 90,000 85,000 Increase in restricted assets 135,250 80,138 Increase in working capital -- 36,525 $225,250 $201 ,663 Changes in components of working capital : Increase (decrease) in current assets: Cash and term deposits 17,503 14,769 Receivables (14,851) 26,777 Due from other entities (226) -- 2,426 41 ,546 Decrease ( increase) in current liabilities: Accrued interest payable 1,416 1 ,417 Matured interest payable (4,468) (61438) Current installment of bonds payable (5,000) -- (8,052) (5,021) Increase (decrease) in working capital $ (5,626) $ 36,525 See accompanying notes to financial statements. 3 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS JUNE 30, 1982 (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 with the City of Huntington Beach (City). Investments Investments are stated at cost and consist of Federal government backed securities and bank time certificates of deposit (see Note 3). Lease The Parking Authority leasing operations consist .totally 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, 1992. 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. 4 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, CONTINUED (2) aerations (Continued) Under the terms of the lease agreement dated September 30, 1968 between the Parking Authority and the City, the lease is to terminate after all of the 1968 revenue bonds are retired or provision for retirement has been made. All costs of maintenance and operation have been assumed by the City. The City must also pay, in the form of additional rent, all taxes, assessments, insurance, fees and other expenses of the Parking Authority. At the termination of the lease, the Parking Authority will retain title to the parking facility. (3) Bonded Debt A summary of the Parking Authority bonded debt is as follows: Bonds Bonds Matured Matured Amount Bonds During Bonds During Bonds Date Years of Rates of Original Outstanding Fiscal Outstanding Fiscal Outstanding Description of Issue Maturity Interest Issue 1980 1981 6/30/81 1982 6/30/82 1968 Parking September, 1970-72 6.00% $ 150,000 $ -- $ -- $ -- $ -- $ -- Revenue Bonds 1968 1973-79 4.75 470,000 -- -- -- -- -- 1980-85 5.00 5709000 570,000 85,000 485,000 85,000 400,000 1986-93 5.25 1 ,110,000 1 ,110,000 -- 1 ,110,000 -- 1 ,110,000 $2,300,000 $1,680,000 $85,000 $1,595,000 $85,000 $11510,000 The following is a schedule of required principal payments during the next five fiscal years and thereafter: Year Ended June 30 Amount 1983 $ 90,000 1984 95,000 1985 105,000 1986 110,000 1987 115,000 Remainder 995,000 $1 ,510,000 5 PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH NOTES TO FINANCIAL STATEMENTS, CONTINUED (3) Bonded_Debt (Continued) Interest is payable semi-annually on March 1 and September 1. Provisions of the bond agreement provide for the establishment of three special funds as follows: (a) Bond Service Fund - All revenues received by the Parking Authority from the lease of the parking facility are placed in the bond service fund. Money in this fund is used to pay bond principal and interest. Amounts received in excess of the amount required to meet principal and interest requirements may be transferred to the reserve fund or working capital fund. Under certain circumstances, such excess funds may be used to finance additions and improvements or reduce the annual rental due from the City. (b) Reserve Funds - An amount equal to one-half the maximum annual debt service must be set aside to be used to pay principal and interest currently payable in the event there is insufficient money in the bond service fund and may be applied to the final payments of principal and interest. (c) Working Capital Fund - After provision has been made for payment of bond principal and interest and an appropriate reserve fund balance has been established, excess money, if any, remaining in the bond service fund may be transferred to the working capital fund to be used to pay the administrative expenses of the Parking Authority and maintain the working capital fund's cash at a balance of at least $1,500. At June 30, 1981, the Parking Authority maintained the following investments pursuant to the terms of the bond agreement (see Note 1 ): 1982 1981 Bond Service Fund $787,814 $666,011 Reserve Fund 107,223 98,244 $8951037 $764,255 Bonds maturing on and after September 1, 1980 may be called before maturity and redeemed at the option of the Parking Authority on any interest payment date prior to maturity. If less than all the outstanding bonds are redeemed at any one time, these bonds will be redeemed in inverse order of maturity and bond number. The bonds are redeemable at par value plus accrued interest and a premium equal to 1/4 of 1 percent for each year or portion of a year from the redemption date to the maturity date, up to a maximum of 3-1/2 percent. 6 ARTHUR YOUNG & COMPANY SUITE 900 The Honorable Members of the City Council 3200 PARK CENTER DRIVE City of Huntington Beach, California P. O. BOX 2410 COSTA MESA, CALIFORNIA 92626 We have examined the combined financial statements of the City of Huntington Beach, California, at June 30, 1982 and for the year then ended, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, ,accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. As more fully described in Note 2 to the combined financial statements, the City reconstructed its accounting records for fixed . assets of the enterprise funds and of the General Fixed Assets Account Group. This resulted in a restatement of the beginning balance of retained earnings for the enterprise funds and an increase to the investment in general fixed assets for the General Fixed Assets Account Group. In our opinion, the statements mentioned above present fairly the financial position of the City of Huntington Beach, California, at June 30, 1982 and the results of operations and changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made primarily for the purpose of forming an opinion on the combined financial statements above, taken as a whole. The combining, individual fund and account group financial statements and other schedules listed as additional financial information in the table of contents are presented for analyses purposes and are not necessary for a fair presentation of the financial information referred to in the preceding paragraph. It has been subjected to the tests and auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all respects material in relation to the combined financial statements taken as a whole. The accompanying statistical exhibits are also presented for the purpose of additional analysis and are not a required part of the combined financial statements of the City of Huntington Beach, California. These statistical exhibits were not audited by us and, accordingly, we do not express an opinion on them. September 16, 1982 aa44400L Combining Financial Statements CITY OF HUNTINGTON BEACH EXHIBIT IV Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year Ended June 30, 1982 Enterprise Internal Total Note 12 Service (Memo only) Operating loss (131 ,384) (1 ,482,428) (1 ,613,812) Non-operating revenue (expense): Interest income 730,498 800,661 1 ,531 ,159 Other revenue 87,968 -- 87,968 Interest expense (207,221 ) -- (207,221) Total non-operating revenue 611,245 800,661 1 ,411 ,906 Income ( loss) before operating transfer 479,861 (681,767) (201,906) Operating transfer to General Fund (387,419) -- (387,419) Net income ( loss) 92,442 (681 ,767) (589,325) Retained earnings at June 30, 1981 , as previously stated 11,510,804 2,968,279 14,479,083 Prior period adjustment (Note 2) (8,170,510) -- (8,170,510) Retained earnings at June 30, 1981, restated (Note 2) 3,340,294 2,968,279 6,308,573 Increase in reserve for retirement of revenue bonds 97,371 -- 97,371 Retained earnings at June 30, 1982 $ 3,530,107 $2,286,512 $5,816,619 See accompanying notes to combined financial statements. 11 CITY OF HUNTINGTON BEACH EXHIBIT V Combined Statement of Changes in Financial Position All Proprietary Fund Types Year Ended June 30, 1982 Enterprise Internal Total Note 12) Service (Memo only) Sources of Working Capital : Operations: Net income $ 92,442 $(681 ,767) $ (589,325) Item not requiring working capital : Depreciation 1 ,152,105 -- 1 ,152,105 Working capital provided for by operations 1 ,244,547 (681,767) 562,780 Contributed capital 1 ,077,886 -- 1 ,077,886 Increase in reserve for revenue bond retirement 97,371 -- 97,371 Total sources of working capital 2,419,804 (681 ,767) 1 ,738,037 Uses of Working Capital : Addition of fixed assets 2,186,753 -- 2,186,753 Increase in restricted assets - cash with fiscal agents 106,096 -- 106,096 Reclassification of note payable 37,244 -- 37,244 Reclassification and redemption of long-term bonds payable 229,310 -- 229,310 Total uses of working capital 2,559,403 -- 2,559,403 Net decrease in working capital $ (139,599) $(6812767) $ (821 ,366) 12 CITY OF HUNTINGTON BEACH EXHIBIT V Combined Statement of Changes in Financial Position All Proprietary Fund Types Year Ended June 30, 1982 Enterprise Internal Total Note 12 Service (Memo only) Changes in Components of Working Capital : Increase (decrease) in current assets: Cash and deposits $ (48,500) $ 347,636 $ 299, 136 Accounts receivable, trade (net) 38,331 -- 38,331 l Accounts receivable, other (net) (15,050) -- (15,050) Interest receivable (14,173) (12,950) (27, 123) Due from other funds -- 3,812 3,812 Total (39,392) 338,498 299,106 Decrease ( increase) in current liabilities: Accounts payable (42,169) 15,399 (26,770) Accrued payroll (11 ,220) (181) (11,401) Customer deposits (37,909) -- (37,909) Due to other funds (99) -- (99) Accrued interest payable 1 ,275 -- 1 ,275 Insurance claims .payable -- (1 ,035,483) (1 ,035,483) Current portion of notes and bonds payable ( 10,085) -- (10,085) Total (100,207) (1 ,020,265) (1 , 120,472) Net decrease in working capital $0 39,599) $ (681 ,7671) $ 821 366) See accompanying notes to combined financial statements. 13 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1982 Note ( 1) Summary of Significant Accounting Policies The following is a summary of the significant accounting policies of The City of Huntington Beach, California (City) . A. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements in this report into six generic fund types and three broad fund categories as follows: GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts) that are restricted to expenditures for specified purposes. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal , interest, and related costs. PROPRIETARY FUNDS Enterprise Funds The City's enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises and where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. 14 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Internal Service Funds Internal Service Funds are used to account for the financing of services provided by one department to the other departments of the City on a cost reimbursement basis. FIDUCIARY FUNDS Expendable Trust Funds Expendable Trust Funds are used to account for assets held by the City for individuals, private organizations or other governments. Expendable Trust Funds are accounted for in essentially the same manner as governmental funds. B. General Fixed Assets and Long-term Debt Groups The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds and Expendable Trust Funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Acquisitions of property, plant and equipment are recorded as expenditures in governmental fund types at the time of purchase. These assets are capitalized at cost in the General Fixed Assets Account Group. Assets acquired from gifts or contributions are recorded at fair market value at the time received. Self-constructed assets are recorded at the amount of direct labor, material and interest costs. Expenditures for infrastructure (roads, curbs and gutters, sidewalks, drainage systems, etc.) normally are not capitalized as such assets are immovable and generally of value only to the City. No depreciation is provided for assets capitalized in the General Fixed Assets Account Group. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. 15 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Noncurrent portions of long-term receivables of governmental funds are reported on their balance sheets, in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables is deferred until they become current receivables. Receivables for amounts due beyond one year are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Property, plant and equipment acquired by proprietary funds are capitalized at cost at the time of purchase in the respective fund. Assets acquired from gifts or contributions are recorded at fair market value at the time received. Depreciation on such assets is calculated on the straight-line method over the estimated useful lives shown below and charged to the operations of the respective fund. Fixed Asset Category Useful Life Production and pumping plant 10-50 years Transmission and distribution plant 10-50 years General plant 20-50 years Transportation equipment 5-30 years Assets leased under capita.] leases by governmental fund types (Note 4) are included in the General Fixed Assets Account Group. The related lease obligations are recorded in the general Long-term Debt Account Group. 16 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS C. Basis of Accounting Basis of accounting refers to the recognition of revenues and expenditures or expenses in the accounts and the reporting of revenues and expenditures in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) accumulated unpaid vacation, sick leave, and other employee amounts which are not accrued; and (2) principal and interest on general long-term debt which is recognized when due. All proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized when earned, and expenses are recognized when incurred. D. Budgetary Process Annual budgets adopted by the City Council provide for the general operations of the City. Revenues for the Special Revenue Funds are .budgeted by entitlements and grants; expenditures and transfers are budgeted based upon available fund resources. The City Council adopts an operating budget at the beginning of the City's fiscal year. The resolution approving the budget authorizes the Chief of Administrative Services to transfer funds from like objects or purpose within the same department. The City Administrator is authorized to transfer funds from one department to another within the adopted budget. Subsequent to the approval of the budget document, the Council authorizes the reappropriation of prior year encumbrances to fund approved projects and certain operational expenditures. The Council is authorized to make and has made appropriation adjustments to the budget during the year as deemed necessary. The adjustments are included in the budget amounts in the accompanying financial statements. The modified accrual basis of accounting is employed in the preparation of the budgetary information. Encumbrances are thus included with expenditures for comparison with budget data but not in the combined statement of Revenues, Expenditures and Changes in Fund Balance. Expenditures in that statement will be less than expenditures reported in the combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual by the amount of encumbrances outstanding at June 30, 1982. These encumbrances are subtracted from the fund balances in the later statement so the ending fund balance in the two statements will be equal . 17 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS E. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as a budgetary control in the General and Special hevenue Funds. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. F. Investments Investments generally consist of federal government-backed securities, bankers acceptances, and municipal securities. G. Vacation and Sick Leave It is the policy of the City to record the cost of vacation and sick leave when paid. The fund balance in the General Fund at June 30, 1982 has been partially designated for $2,282,000 which is the total unrecorded liability for vacation and sick leave that has been accumulated by City employees. H. Pension Plan Substantially all City employees participate in the Public Employees Retirement System (PERS) administered by the State of California. The total pension expense recognized by the City for the fiscal year ended June 30, 1982 was approximately $4,098,000. It is the City's policy to fund current retirement costs as accrued. Actuarial valuations and calculations are made for the PERS plan as a whole and not individually for the City and its employees. Therefore, the City's share of the actuarial present value of PERS benefits and net assets are not determinable. J. Deferred Employee Compensation The City has a deferred compensation plan whereby eligible City employees may elect to defer a portion of their earnings for federal income tax purposes. The deferred compensation plan has been approved by the Internal Revenue Service (Service). The Service stipulated in its approval that legal title to the deferred compensation funds, together with any interest thereon, must rest with the City. For purposes of financial statement presentations, these deferred compensation funds have been treated as a separate Expendable- Trust Fund of the City. 18 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS K. Total Columns on Combined Financial Statements Total columns on the Combined Financial Statements are captioned memorandum (memo) to indicate they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. L. Property Taxes Property taxes receivable as of June 30, 1982 and expected to be collected during fiscal year 1983 are recognized as revenues in 1982. Impound and delinquent taxes are recognized as revenue when received. M. Interfund Transactions In the course of normal operations, transactions occur between various City funds. Internal service funds record charges to other funds as revenue and the receiving funds record such charges as expenditures or expenses. The General Fund provides administrative services to the enterprise funds. Amounts charged to a fund, if any, for these services are treated as revenue in the General Fund and as operating expenses or expenditures in payor funds. Interfund transactions are not eliminated, nor are interfund payables and receivables outstanding at year-end. N. Reporting Entity The accompanying financial statements include data for all departments and agencies comprising the City of Huntington Beach as a legal entity. There are certain separate legal entities which share the title "City of Huntington Beach", including the Public Facilities Corporation, the Parking Authority and the Redevelopment Agency. These entities are autonomous organizations with their own governmental powers and constituencies. They maintain their own financial records and issue financial statements separate and distinct from those of the City. Accordingly, they are not included in the accompanying financial statements. 0. Operational Reserve Fund The City has established an Operational Reserve Fund (Special Revenue) under Article XI11B, Section 5, of the State Constitution. The purpose of the fund is to provide sources of monies for operating expenditures in the event of future declines in revenues from the State and Federal government. 19 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS P. Self-Insurance The City is self-insured for various types of risks, principally worker's compensation, public liability and employee health. Operating revenues of these funds comprise payments from other City funds and are based upon estimated insurance policy premiums expense, self-insured losses and other operating expenses. It is the City's policy to charge to expense amounts of claims which are reasonably determinable and where the existence of the City's liability is probable. Q. Interest The City incurs interest expense on general obligations bonds, water revenue bonds, notes payable and capital leases. During the year ended June 30, 1982, no interest was capitalized; the City's interest expense was as follows: Interest expense Governmental fund types: General Fund (capital lease obligations) $ 754,726 Debt Service Fund (general obligation bonds) 260,525 $1 ,015,251 Proprietary fund types: Water Enterprise Funds (water revenue bonds and note payable) $ 75,268 Meadowlark Golf Course Fund (note payable) 131 ,953 $2072221 Note (2) Prior Period Adjustments The City's system of accounting for property and equipment in prior years did not include sufficient controls to ensure all property and equipment acquired by the City was properly recorded in the accounting records. During the year ended June 30, 1982, the City determined that assets acquired by the Water Utility Fund and Meadowlark Golf Course Fund in prior years had previously been excluded from the books and records. Accordingly, contributed capital and retained earnings for the Water Utility Fund have been restated at $11 ,805,532 and $(8,506,220), respectively, to properly record the property and related accumulated depreciation. Retained earnings for the Meadowlark Golf Course has been restated at $335,710 to properly record the property. Additionally, $17,697,033 of property, plant and equipment acquired by the City's General Fixed Assets Account Group in prior years was recorded as a fund asset in the year ended June 30, 1982, with a corresponding increase to Investment in General Fixed Assets in the accompanying financial statements. 20 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS P. Self-Insurance The City is self-insured for various types of risks, principally worker's compensation, public liability and employee health. Operating revenues of these funds comprise payments from other City funds and are based upon estimated umbrella insurance policy premiums expense, self-insured losses and other operating expenses. Q. Interest The City incurs interest expense on general obligations bonds, water revenue bonds, notes payable and capital leases. During the year ended June 30, 1982, no interest was capitalized; the City's interest expense was as follows: Interest expense Governmental fund types: General Fund (capital lease obligations) $ 754,726 Debt Service Fund (general obligation bonds) 260,525 $1 ,015,251 Proprietary fund types: Water Enterprise Funds (water revenue bonds and note payable) $ 75,268 Meadowlark Golf Course Fund (note payable) 131 ,953 $207,221 Note (2) Prior Period Adjustments The City's system of accounting for property and equipment in prior years did not include sufficient controls to ensure all property and equipment acquired by the City was properly recorded in the accounting records. During the year ended June 30, 1982, the City determined that assets acquired by the Water Utility Fund and Meadowlark Golf Course Fund in prior years had previously been excluded from the books and records. Accordingly, contributed capital .and retained earnings for the Water Utility Fund have been restated at $11 ,805,532 and $(8,506,220), respectively, to properly record the property and related accumulated depreciation. Retained earnings for the Meadowlark Golf Course has been restated at $335,710 to properly record the property. Additionally, $17,697,033 of property, plant and equipment acquired by the City's General Fixed Assets Account Group in prior years was recorded as a fund asset in the year ended June 30, 1982, with a corresponding increase to Investment in General Fixed Assets in the accompanying financial statements. 21 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Note (3) Property, Plant and Equipment Property, plant and equipment net of allowance for depreciation consists of the following at June 30, 1982: General Total Fixed Enterprise (Memo Assets Funds Only) Land $16,293, 193 $ 3,462,725 $19,755,918 Buildings 9,386,744 1 ,232,039 10,618,783 Machinery and equipment 8,673,287 1 ,255,901 9,929, 188 Improvements other than buildings 4,813,825 40,313,501 45,127,326 $39,167,049 $46,264, 166 $859431 ,215 Accumulated depreciation -- 14,398,455 14,398,455 $39,167,049 $31 ,865,711 $71 ,032,760 A summary of changes in the General Fixed Assets Account Group for the year ended June 30, 1982 follows: Balance June 30, 1981 Prior (As previously Period Balance reported ) Adjustment Additions Disposals June 30, 1982 Land $ 669,442 $14,908,751 $ 715,000 $ -- $16,293, 193 Buildings 17,296,217 (8,940,432) 1 ,205,421 174,462 9,386,744 Machinery and equipment 598,102 7,051 ,654 1 ,221 ,323 197,792 8,673,287 Improvements other than buildings -- 4,677,060 136,765 -- 4,813,825 $18,563,761 $17,697,033 $3,278,509 $372,254 $39,167,049 22 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS A summary of changes in the Enterprise Fund Account Group net of allowance for accumulated depreciation for the year ended June 30, 1982 follows: Balance June 30, 1981 Prior (As previously Period Allowance For Balance reported ) Adjustment Additions Depreciation June 30, 1982 Land $ 3,052,004 $410,721 $ -- $ -- $ 3,462,725 Buildings 47,276 369,028 687,317 (33,905) 1 ,069,716 Machinery and equipment -- 498,911 271 ,837 (64,556) 706, 192 Improvements other than buildings 24,096,761 2,356,362 1 ,227,599 (1 ,053,644) 269627,078 $27096,041 $3,635,022 $2, 186,753 $(1 , 152, 105) $31 ,865,711 Note (4) Leases The City has entered into two noncancelable lease and sublease agreements with the Huntington Beach Public Facilities Corporation (Corporation) for the Huntington Beach Civic Center complex and the Central Library. Under both agreements, the City is to pay all taxes, insurance, administrative and maintenance costs. Title to the site improvements will pass to the City at the termination of the leases. The City has determined that such leases are capital leases and require use of the financing method. Under the financing method, a transaction is regarded as an installment purchase whereby an asset and related liability are recorded. The principal portion of annual rental payments are treated as reductions of the liability. Advance rentals from the Corporation received by the City for lease of the site upon which the facilities are constructed are recorded as deferred rental income in the General Fund and are amortized over the term of the sublease. A description of each lease agreement is as follows: A. Civic Center This involves a noncancelable lease and sublease agreement with the Corporation for the Huntington Beach Civic Center. The City has leased the Civic Center site to the Corporation for $350,000 advance rental . The term of the lease is from January 15, 1972 to one week after the termination of the sublease. The Corporation has subleased the Civic Center site and improvements to the City for $854,900 annual base rental. The sublease commenced July 1 , 1974 for a term of 30 years or until all debts of the Corporation related to the Civic Center have been discharged, whichever comes first. 23 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS B. Central Library This involves a noncancelable 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 the termination of the sublease. The Corporation has subleased the Library site and improvements to the City for $399,000 annual base rental . The sublease commenced February 15, 1975 for a term of 30 years or until all debts of the Corporation related to the Library have been discharged, whichever comes first. The following is a summary, by years, of future minimum lease payments under all capital leases, together with the present value of the net minimum lease payments, as of June 30, 1982: General Long-Term Debt Year Ended June 30 Account Group 1983 $ 1 ,360,000 1984 1 ,360,000 1985 1 ,360,000 1986 1 ,307,000 1987 1 ,287,000 1988 and after 13,792,000 Total minimum lease payments 20,466,000 Less amount representing interest (8,336,232) Present value of minimum lease payments $12, 129,768 Changes in the General Long-term Debt Account Group lease obligations during the year ended June 30, 1982 are summarized below: Balance Balance June 30, 1981 Payments June 30, 1982 $12,556,577 $426,809 $12,129,768 24 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS The following is a schedule of property leased under capital leases by major classes at June 30, 1982: General Fixed Assets Account Group Land $ 669,442 Buildings 13,243,862 Total $13,913,304 Note (5) Commitments In 1969, the City entered into an operating lease 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 agreement are $170,050. Ownership of the parking facility will remain with the Parking Authority. Minimum aggregate rental commitments under the agreement are as follows: Year Amount 1983 $ 170,050. 1984 170,050 1985 170,050 1986 170,050 1987 170,050 Remainder 850,250 $1,700,500 The City has entered into agreements with contractors which generally provide for possible reimbursement to contractors of costs incurred in the construction of water, sewer, and drainage facilities. The extent of such reimbursement will generally be subsequent fees which are collected from other users of the facilities. The City recognizes fees as revenue as they are collected and charges subsequent payments to expenditures as they are made. The City has reserved a portion of the fund balance in .the Planned Local Drainage Fund (Special Revenue Fund) for this purpose. 25 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Note (6) Investments in Marketable Securities A summary of the City's marketable securities at June 30, 1982 is as follows: Approx. Interest Principal Market Description Rates Maturity Amount Cost Value General Fund City of Huntington Beach 1970 Park Bonds 6.0 1990 $ 25,000 $ 24,509 $18,863 Huntington Beach Parking Authority 1968 Parking Revenue Bonds 5-5.25 1984-1993 100,000 85,302 77,470 Total Investments $125,000 $109,811 $96,333 Note (7) Outstanding Indebtedness A summary of bonded indebtedness outstanding as of June 30, 1982 is as follows: Bonds Bonds Bonds Date of Years of Rate of Amount of Outstanding Matured During Outstanding Issue Bonds Maturity Interest Orig. Issue June 30, 1981 Year June 30, 1982 General Obligation Bonded 1970 Park Bond 1970 1971-1972 5.00 $ 225,000 1973-1974 5.25 255,000 -- -- __ 1975-1977 5.50 4409000 -- -- __ 1978-1983 5.75 1 ,150,000 430,000 210,000 220,000 1984-1995 6.00 3,930,000 3,930,000 -- 3,930,000 Total general obligation bonded debt $62000,000 $4 360,000 210,000 L $ $ _50,000 26 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Bonds Bonds Bonus Date of Years of Rate of Amount of Outstanding Matured During Outstanding Issue Bonds Maturity Interest Orig. Issue June 30, 1981 Year June 30, ljb2 Issue Revenue Bonds Water Utility Fund - 1963 Water Revenue Bond 1963 1965-1974 4.75% $ 700,000 $ -- $ -- $ 1975-1978 3.25 460,000 1979-1981 3.30 400,000 140,000 140,000 - 1982-1983 3.40 300,000 295,000 -- 295,0U0 1984-1993 3.50 1 ,890,000 1 ,331 ,000 60,000 1 ,271000 Total Revenue Bonds (a)(b) $3,750,000 $1 ,766,000 $200,000 11560"1000 Less current portion 150,0`OU Long term portion $1 ,41b,000 (a) The water revenue bonds do not represent a general liability of the City of Huntington Beach. (b) At June 30, 1982, there were $1 ,950,000 authorized but unused 1963 water revenue bonds. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all limitations and restrictions. The following is a schedule of required principal payments during the next five fiscal years and thereafter: General Water Total Year ending Obligation Revenue (Memo June 30 Bonds Bonds Unly) 1983 $ 220,000 $ 150,000 $ 370,000 1984 235,000 145,000 380,000 1985 245,000 160,000 405,000 1986 260,000 160,000 420,000 1987 280,000 170,000 450,000 Remainder 2,910,000 781 ,000 3,691 ,000 $4,150,000 $1,566,000 $5,716,000 ` 27 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Note (8) Meadowlark Golf Course Note Payable 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 in the form of a long-term -7 percent note. At June 30, 1982, the balance of the note was $1 ,866,997. A schedule of yearly principal and interest payments is as follows: Year Amount 1983-2001 $150000 2002-2008 200,000 2009 115,703 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 2008-2009. 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 (9) San Joaquin Reservoir In 1979 the City and several other local cities and water districts purchased the San Joaquin Reservoir. The City is paying a portion (13.56%) of the debt service for the 1961 construction of the reservoir which is partially based on its percentage ownership (13.1%). The construction bonds will be fully redeemed in 1992. Operating and improvement costs are also allocated to the owners in the same proportion. In the event of default, the expenses and/or debt service payments shall be reallocated among the remaining non-defaulting owners in the proportion to the percentage interest owned as though the party in default did not exist. 28 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS At June 30, 1982, the City' s total principal payments due under the purchase agreement are $488,395. Annual principal and interest payments for the next five years and the remainder of the agreement are as follows: Year Amount 1983 $ 56,361 1984 58,915 1985 57,318 1986 57,714 1987 58,018 1988-1992 296,988 Total Payments $585,314 The City has recorded its portion of the reservoir as a fixed asset in the Water Utility Fund. Note (10) Litigation There are certain legal actions pending against the City which have arisen in the normal course of operations. In the opinion of management and the City Attorney, the ultimate resolution of such action is not expected to have a significant impact on the financial statements or - operations of the City. Note (11) Manpower Grant Fund The accumulated deficit of $206, 162 in the Manpower Grant Fund was recorded as a deficit transfer to the General Fund at June 30, 1982 since the expenditures incurred were not fully reimbursed under the Comprehensive Employment and Training Act (CETA). 29 CITY OF HUNTINGTON BEACH NOTES TO COMBINED FINANCIAL STATEMENTS Note (12) Segments of Enterprise Activity The City has two Enterprise Funds which are run on the same basis as commercial enterprises -- Water Utility and Meadowlark Golf Course. The key financial data for the year ended June 30, 1982 for those funds are as follows: Water Meadowlark Utility Golf Course Total Operating revenues $ 5,739,349 $ 183,683 $ 5,923,032 Operating expenses: Depreciation 1 , 111 ,020 41,085 1 , 152,105 Other 4 902,311 -- 5 289,730 6,013,331 1 ,0 5 ,, F1,835 Operating income ( loss) $ (273,982) $ 142,598 $ (131 ,384) Operating transfer to other fund $ 387,419 $ -- $ 387,419 Net income $ 81,797 $ 10,645 $ 92,442 Total assets $34, 171,057 $3,534,961 $37,706,018 Bonds and notes payable (long-term) $ 1 ,866,895 $1 ,847,687 $ 3,714,582 Fund equity $31 ,273,511 $1 ,621 ,639 $32,895,150 Acquisition of fixed assets $ 2, 186,753 $ -- $ 2,186,753 Capital contributions received $ 1 ,077,886 $ -- $ 1 ,077,886 Net working capital $ (172,019) $ 32,420 $ (139,599) 30 m CITY OF HUNTINGTON BEACH STATEMENT I General Fund Statement of Appropriations, Expenditures and Encumbrances Budget and Actual Year Ended June 30, 1982 Appropriations Expenditures Encumbrances Variance - Percentage of Original Budget Revised Personal Maint. Capital Total Outstanding Total Expenditures Favorable Appropriation Budget Changes Budget Services Operations Outlay Expenditures Encumbrances and Encumbrances (Unfavorable) Expended Expenditures: Administrative: City Council $ 97,638 $ (457) $ 97, 181 $ 49, 104 $ 28,277 $ -- $ 77,381 $ -- $ 77,381 $ 19,800 19.62 Non-Departmental 5,970,400 (74,724) 5,895,676 -- 4,013,719 -- 4,013,719 77,889 4,091 ,608 1 ,804,.068 69.40 Administration 415,668 (1 410) 414,258 332,793 69 591 -- 402,384 3,554 405,938 8,320 97.59 3,,706 7 ,591 07,115 3811,9 4, 111,587 -- 4,493 484 81,443 4,574,927 1,832, 188 71.40 Support: Administrative Services 1 ,995,784 111 ,343 2, 107, 127 1,521 ,865 499,473 5,891 2,027,229 28,774 2,056,003 51 , 124 97.57 Attorney 509,970 72,334 582,304 487,373 97,442 -- 584,815 1 ,991 586,806 (4,502) 100.77 Clerk 213,437 (1 ,973) 211,464 141 ,775 57,850 -- 199,625 6 199,631 11 ,833 94.4O Treasurer 1 ,024,651. 34 712 1,059,363 256 647 585 708 -- 842,355 69 842,424 216 939 75.52 3,743,84221-b,f+1� 3,9 0,25 2,407,660 1 ,240,473 5,891 3�T+ 30, 4_0 3,68 ,864 275,i-T+ 93 0 Community Services: Community Services 4,598,853 78, 136 4,676,989 3,414,045 986, 154 -- 4,400, 199 70,601 4,470,800 2O06, 189 95.60 Development Services 1 ,920,443 (2,966) 1,917,477 1,725,413 37,446 -- 1,762,859 3,044 1 ,765,903 151 ,574 y2.O9 Public Works 9,792,708, 399 584 10, 192,292 5,791 ,447 3,548,058 14 263 9,353,768 498,519 9,852,287 340,06 y6.6o 16,312,004 74r+ 75�+ 1 ,7 ,75 10,930,905 4,571 ,65814�2� 15,516,826 572, 164 160 8, 6- 9 68 95.84 Public Safety: Police 13, 150,665 83,899 13,234,564 11 ,852,902 1,251 ,959 3, 116 13,107,977 128, 120 13,236,097 (1 ,533) 100.01 Fire 7,522,059 133,410 7,655,469 6,899,283 350,307 71 ,699 7,321,289 82,300 7,403,589 251 ,860 96.70 20,672,724 217,309 20,8901033 18,752,185 1 ,602,266 74,815 20,429,266 210,420 20,639,686 250,347 98.80 Total Expenditures $47,212,276 $831 ,888 $48,044, 164 $32,472,647 $11 ,525,984 $94,969 $44,093,600 $894,867 $44,988,467 $3,055,697 53.63 31 CITY OF HUNTINGTON BEACH STATEMENT II Special Revenue Funds Combining Balance Sheet June 30, 1982 HUD Park Rehabilitation Special Planned Federal Federal Acquisition Special Loan and Gas Library Local Revenue Manpower Other and Operational Capital Interest Tax Service Sewer Drainage Sharing Grants Grants Development Reserve Outlay Subsidy Total Assets Cash & term deposits $2,622,218 $-- $2,334,687 $2,065,458 $6, 143 $ -- $191 ,085 $1 ,638,436 $1 ,599,346 $1 ,522, 121 $242,ti36 $12,222,430 Interest receivable 33,396 -- 29,743 26,317 -- -- -- 24,059 20,369 19,465 -- 153,349 Due from other governments, net 6,503 -- 491 ,261 -- -- -- 143,082 95,264 -- 64 -- 736, 174 Notes receivable, net of loan loss reserve -- -- -- -- -- -- -- -- -- -- 13,547 13,54% Total assets $2,662, 117 $-- $2,855,691 $2,091,775 $6, 143 $ -- $334, 167 $1,757,759 $1 ,619,715 $1 ,541 ,650 $256,483 $13,125,500 Liabilities and Fund Balance Liabilities: Accounts payable $ 24,988 $-- $ 14,960 $ 25,567 $-- $ -- $ 3,503 $ 120,881 $ 8,500 $ 57,287 $ -- $ 255,e86 Accrued payroll -- -- -- -- -- -- 2,668 2,339 -- -- -- 5007 Deposits 1 ,035 -- -- -- -- -- -- 682 -- - 1 ,717 Due to other funds -- -- -- -- -- -- -- 65 -- -- __ 05 Total liabilities 261023 -- 14,960 25,567 -- -- 6,171 123,967 8,500 57,287 -- 262,475 32 CITY OF HUNTINGTON BEACH STATEMENT II Special Revenue Funds Combining Balance Sheet June 30, 1982 HUD Park Rehabilitation Special Planned Federal Federal Acquisition Special Loan and Gas Library Local Revenue Manpower Other and Operational Capital Interest Tax Service Sewer Drainage Sharing Grants Grants Development Reserve Outlay Subsidy Total Fund balances: Reserved for: Encumbrances 36,654 -- 41 ,970 261 ,338 6,143 -- 199,330 394,339 108,250 596,944 -- 1 ,644,968 Amounts due beyond one year -- -- 437,500 -- -- -- 81,257 -- -- -- 518,757 Reimbursement agreements -- -- -- 635,410 -- -- -- -- -- -- -- 635,410 Disaster Relief -- -- -- -- -- -- 92,249 -- -- -- -- 92,249 Unreserved: Designated for: Future development -- -- -- 31,226 -- -- -- 47,000 -- -- -- 78,226 Undesignated 2,599,440 -- 2,361 ,261 1 ,138,234 -- -- 36,417 1 ,111 ,196 1,502,965 887,419 256,483 y,893,415 Total fund balances 2,636,094 -- 2,840,731 2,066,208 6,143 -- 327,996 1 ,633,792 1,611,215 1,484,363 256,483 12,863,025 Total liabilities and fund balances $2,662,117 $ -- $2,855,691 $2,091,775 $6, 143 $-- $3341167 $1,757,759 $1,619,715 $1,541,650 $256,483 $13, 125,500 33 CITY OF HUNTINGTON BEACH STATEMENT III Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 1982 HUD Park Rehabilitation Special Planned Federal Federal Acquisition Special Loan and Gas Library Local Revenue Manpower Other and Operational Capital Interest Tax Service Sewer Drainage Sharing Grant Grants Development Reserve Outlay Subsidy Total Revenues: Licenses and permits $ -- $ 34,515 $ 34,789 $113,417 $-- $ -- $ -- $ 83,401 $ -- -- $ -- $ 266, 122 Use of money & property 326,966 -- 347,213 296,098 85,258 -- -- 359,396 .237,855 113,552 12,987 1,779,365 Revenue from other agencies 3_,338,576 -- -- -- 1,766,463 26,521 1,306,727 -- -- -- -- 6,438,267 Charges for current services -- -- -- -- -- -- -- 162,839 -- -- -- 162,839 Total revenues 3,665,542 34,515 382,002 409,515 1 ,851 ,721 26,521 1 ,306,727 605,636 237,855 113,592 12,987 8,646,613 Expenditures: Administrative -- -- -- -- -- -- -- -- -- 211 -- 211 Support -- -- -- -- -- -- -- -- -- 45,665 -- 45,665 Community services -- -- -- -- 592 -- -- -- -- 1,051 ,562 -- 1 ,052, 154 Public safety -- -- -- -- -- -- -- 122,616 954,434 -- 1,077,050 Highways and street 2,656,408 -- -- -- -- -- -- -- -- -- -- 2,656,408 Drains and sewers -- -- 396,978 135,077 -- -- -- -- -- -- -- 532,055 Park development -- -- -- -- -- -- -- 1,684,621 -- -- -- 1,684,621 Loan subsidies and loan losses -- -- -- -- -- -- -- -- -- -- 38,575 38,575 ` Grants -- -- -- -- -- 42,858 1 ,213,955 -- -- -- -- 1,256,813 Miscellaneous -- -- -- -- -- -- -- -- -- 143 -- 143 Total expenditures 2,656,408 -- 396,978 135,077 592 42,858 1,213,955 1,684,621 122,616 2,052,015 38,575 5,343,05 34 CITY OF HUNTINGTON BEACH STATEMENT III Special Reveunue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 1982 HUD Park Rehabilitation Special Planned Federal Federal Acquisition Special Loan and Gas Library Local Revenue Manpower Other and Operational Capital Interest Tax Service Sewer Drainage Sharing Grant Grants Development Reserve Outlay Subsidy Total Excess (deficiencies) of revenues over expenditures 1,009, 134 34,515 (14,976) 274,438 1,851, 129 (16,337) 92,772 (1,078,985) 115,239 (1,938,423) (25,588) 302,918 Other financing sources operating transfers in (out) (673,205) (34,515) -- -- (1,854, 193) -- (23,951) -- -- 1,747,392 23,951 (814,521) Excess (deficiencies) of revenues and operating transfers in over expenditures and operating transfers out 335,929 -- (14,976) 274,438 (3,064) (16,337) 68,821 (1,078,985) 115,239 (191,031) (1 ,637) (511,603) Fund balance at June 30, 1981 2,300,165 -- 2,855,707 1,791 ,770 9,207 (189,825) 259, 175 2,712,777 1 ,495,976 1,675,394 258, 120 13,168,46o Deficit transfers - out -- -- -- -- -- 2062162 -- -- -- -- -- 206, 162 Fund balance at June 30, 1982 $2,636,094 $ -- $2,840,731 $2,066,208 $ 61143 $ -- $327 996 $1,633,792 $11611i215 $1,484,363 $256,483 $12,863,u25 35 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund .Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Park Acquisition and Federal Revenue Sharing Federal Manpower Grant Other Grants Development Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (unfavorable, Revenues: Licenses and permits $ -- $-- $-- $ -- $ -- $ -- $ -- $ -- $ -- $ 960,000 $ 83,401 $(876,5y5) Use of money and property -- 85,258 85,258 -- -- -- -- -- -- 252,500 359,396 106,856 Revenue from other agencies 1 ,830,000 1 ,766,463 (63,537) 46,245 26,521 (19,724) 4,067,974 1,306,727 (2,761 ,247) -- -- -- Charges for current services -- -- -- -- -- -- -- -- -- 70,000 162,839 92,639 Other revenues -- -- -- -- -- Total revenues 1,830,000 1 ,851,721 21,721 46,245 26,521 (19,724) 4,067,974 1 ,306,727 (2,761,247) 1,282,500 605,636 (676,864) Expenditures: Administrative -- -- -- -- -- -- -- Support -- -- -- -- -- -- Community services 618 6,735 (6, 117) -- -- -- -- -- -- -- -- Public safety 6, 143 -- 6, 143 -- -- -- -- -- -- -- -- Highways and street -- -- -- -- -- -- -- -- Drains and sewers -- -- -- -- -- Park development -- -- -- -- -- -- -- -- -- 4,676,778 2,078,960 2,597,818 Loan subsidies and loan losses -- -- -- -- -- Grants -- -- -- 48,205 42,858 5,347 4,759,864 1,413,285 3,346,579 -- -- -- Miscellaneous -- -- -- -- - Total expenditures 6,761 6,735 26 48,205 42,858 5,347 4,759,864 1,413,285 3,346,579 4,676,778 2,078,960 2,597,818 36 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Paris Acquisition and Federal Revenue Sharing Federal Manpower Grant Other Grants Development Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorablf Excess (deficiencies) of revenues over expenditures 1,823,239 1 ,844,986 21 ,747 (1,960) (16,337) (14,377) (691 ,890) (106,558) 585,332 (3,394,278) 0,473,324) 1,920,954 Other financing sources (uses) (1,550,000) (1 ,854, 193) (304, 193) -- -- -- -- (23,951) (23,951) -- -- -- Excess (deficiencies) of revenues and other sources over expenditures and other uses 273,239 (9,207) (282,446) (1,960) (16,337) (14,377) (691,890) (130,509) 561 ,381 (3,394,278) (1,473,324) 1,920,954 Fund balance at June 30, 1981 9,207 9,207 -- (189,825) (189,825) -- 259, 175 259, 175 -- 2,712,777 2,712,777 -- Deficit transfers out -- -- -- -- 206, 162 206, 162 -- -- -- -- -- -- Fund balance at June 30, 1982 budgetary basis 282,446 -- (282,446) (191,785) -- 191 ,785 (432,715) 128,666 561,381 (681,501) 1,239,453 1,920,954 Add encumbrances outstanding June 30, 1982 6, 143 6, 143 -- -- -- -- 199,330 199,330 -- 394,339 394,339 -- Fund balance at June ,30, 1982 GAAP basis $ 288,589 $ 6, 143 $(282,446) $0 91,785) $ -- $1912785 $(233,385) $327,996 $561,381 $ (287, 162) 41 ,633,792 $1 ,920,954 37 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Special Gas Tax Library Service Sewer Planned Local Drainage Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (unfavorable) Revenues: Licenses and permits $ -- $ -- $ -- $100,000 $34,515 $(65,485) $ 125,000 $ 34,789 $(90,211) $ 475,000 $113,417 $(301 ,583) Use of money & property 200,000 326,966 126,966 -- -- -- 275,000 347,213 72,213 250,000 296,098 46,098 Revenue from other agencies 4,502,464 3,338,576 (1 , 163,888) -- -- -- -- -- -- - Charges for current services -- -- -- -- -- Other revenues - -- -- -- -- -- -- Total revenues 4,702,464 3,665,542 (1,036,922) 100,000 34,515 (65,485) 400,000 382,002 (17,998) 725,000 409,515 (315,485) Expenditures: Administrative -- -- -- -- -- -- -- -- -- -- -- Support -- -- -- -- -- -- -- -- -- -- -- -- Community services -- -- -- -- -- -- -- Public safety -- -- -- -- -- -- -- -- -- -- Highways and street 5,796,702 29693,062 3,103,640 -- -- -- -- -- -- -- -- Drains and sewers -- -- -- -- -- -- 1,078, 148 438,948 639,200 1 ,391 ,263 396,415 ti94,846 Park development -- -- -- -- -- -- -- -- -- -- -- Loan subsidies and loan losses -- -- -- -- -- -- -- -- - Grants -- -- -- -- -- Miscellaneous -- -- -- -- -- -- -- -- -- Total expenditures 5,796,702 2,693,062 3,103,640 -- -- -- 1,078,148 438,948 639,200 1,391,263 396,415 994,848 33 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revinue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 Special Gas Tax Library Service Sewer Planned Local Drainage Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Excess (deficiencies) of revenues over expenditures (1,094,238) 972,480 2,066,718 100,000 34,515 (65,485) (678, 148) (56,946) 621,202 (666,263) 13, 100 679,363 Other financing sources (uses) (685,000) (673,205) 11 ,795 ( 100,000) (34,515) 65,485 -- -- -- -- Excess (deficiencies) of revenues and other - sources over expenditures and other uses (1,779,239) 299,275 2,078,513 -- -- (678, 148) (56,946) 621,202 (666,263) 13, 100 679,303 Fund balance at June 30, 1981 2,300, 165 2,300, 165 -- -- -- -- 2,855,707 2,855,707 -- 1,791 ,770 1,791 ,770 -- Deficit transfers out -- -- -- -- -- -- -- -- Fund balance at June 30, 1982 budgetary basis 520,927 2,599,440 2,078,513 -- -- -- 2, 177,559 2,798,761 621,202 1, 125,507 1,804,870 b79,3b3 Add encumbrances outstanding June 30, 1982 36,654 36,654 -- -- -- -- 41,970 41,970 -- 261 ,338 261,338 -- Fund balance at June 30, 1982 GAAP basis $ 557,581 $2,636,094 $2,078,513 $ -- $ -- $ -- $2,2192529 $2,840,731 $6211202 $1,386,845 $2,066,208 4679,363 39 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 HUD Rehabilitation Loan Operational Reserve Fund Special Capital Outlay and Interest Subsidy Total Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: Licenses and permits $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ 1,660,000 $ 266, 122 $0 ,393,876) Use of money and property 150,000 237,855 87,855 140,000 113,592 (26,408) -- 12,987 12,987 1,267,500 1 ,77y065 511 ,865 Revenue from other agencies -- -- -- -- -- -- -- -- -- 10,446,683 6,438,287 (4,008,396) Charges for current services -- -- -- -- -- -- -- -- -- 70,000 162,839 92,839 Other revenues 10,000 -- (10,000) -- -- -- 10,000 -- (10,000) Total revenues 150,000 237,855 87,855 150,000 113,592 (36,408) -- 12,987 12,987 13,454,183 8,646,613 (4,807,570) Expenditures: Administrative 173, 100 -- 173, 100 250 249 1 -- -- -- 173,350 249 173,101 Support -- -- -- 83,024 88,684 (5,660) -- -- -- 83,024 68,684 (5,660) Community services 17,940 -- 17,940 1,697, 120 1,350,020 347, 100 -- -- -- 1,715,678 1 ,356,755 356,923 Public safety 40,525 230,866 (190,341) 1,415,027 1,209,863 205064 -- -- -- 1,461 ,695 1 ,440,729 201966 Highways and street -- -- -- -- -- -- -- -- -- 5,796,702 2,693,Ob2 3, 103,640 Drains and sewers -- -- -- -- -- -- -- -- 2,469,411 835,363 1 ,634,048 Park development -- -- -- -- -- -- -- -- -- 4,676,778 2,078,960 2,597,818 Loan subsidies and loan losses -- -- -- -- -- -- -- 38,575 (38,575) -- 38,575 (38,575) Grants -- -- -- -- -- -- -- -- -- 4,808,069 1 ,45b, 143 3,351 ,926 Miscellaneous -- -- -- 9,948 143 9,805 -- -- -- 9,948 143 9,8u5 Total expenditures 231,565 230,866 699 3,205,369 2,648,959 556,410 -- 38,575 (38,575) 21,194,655 5,988,663 11,205,952 40 CITY OF HUNTINGTON BEACH STATEMENT IV Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Budgetary Basis Actual Year Ended June 30, 1982 HUD Rehabilitation Loan Operational Reserve Fund Special Capital Outlay and Interest Subsidy Total Budgetary Variance Budgetary Variance Budgetary Variance Budgetary Variance Basis Favorable Basis Favorable Basis Favorable Basis Favorable Budget Actual (unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) budget Actual (Unfavorable) Excess (deficiencies) of revenues over expenditures (81 ,565) 6,989 88,554 (3,055,369) (2,535,367) 520,002 -- (25,588) (25,588) (7,740,472) (1,342,050) b,398,422 Other financing sources (uses) -- -- -- 1,723,200 1,747,392 24, 192 -- 23,951 23,951 (611 ,800) (b14,521) (202,721) Excess (deficiencies) of revenues and other sources over expenditures and other uses (81,565) 6,989 88,554 (1,332, 169) (787,975) 544, 194 -- (1,637) (1,637) (8,352,272) (2, 156,571) 6, 195,701 Fund balance at June 30, 1981 1,495,976 1,495,976 -- 1,675,394 1,675,394 -- 258, 120 258, 120 -- 13068,466 13068,466 -- Deficit transfers out -- -- -- -- -- -- -- -- -- 206, 162 206, 162 Fund balance at June 30, 1982 budgetary basis 1,414,411 1,502,965 88,554 343,225 887,419 544, 194 258, 120 256,483 (19637) 4,816, 194 11,218,057 b,401 ,863 Add encumbrances outstanding June 30, 1982 108,250 108,250 -- 596,944 596,944 -- -- -- -- 1 ,644,968 1,644,968 -- Fund balance at June 30, 1982 GAAP basis $1,522,661 $1,611,215 $88,554 $ 940, 169 $12484,363 $544, 194 $258, 120 $256s 483 $0,637) $ 6,461 , 162 $12,863,025 $6,401,8b3 41 CITY OF HUNTINGTON BEACH STATEMENT V Debt Service Funds Combining Balance Sheet June 30, 1982 1970 Park Bond Interest and Bond Redemption Assets Cash and term deposits $ 9,668 Property taxes receivable 12, 152 Total assets $211820 Liabilities and Fund Balance Liabilities $ -- Fund balance 21,820 Total liabilities and fund balance $21,820 See accompanying accountants' report. 42 CITY OF HUNTINGTON BEACH STATEMENT VI Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1982 1970 Park Bond Interest and Redemption Fund Revenues: General property taxes $419 638 Total revenues 193$ Expenditures: Redemption of matured bonds 210,000 Interest 260,525 Miscellaneous 461 Total expenditures 470,986 Deficiency of revenues over expenditures (51,348) Fund balance at June 30, 1981 73,168 Fund balance at June 30, 1982 $ 21,820 43 CITY OF HUNTINGTON BEACH STATEMENT VII Debt Service Fund Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended June 30, 1982 1970 Park Bond Interest and Redemption Fund Variance- Favorable Budget Actual (Unfavorable) Revenues: General property taxes $475,000 $419,638 $(55,362) Total revenues 475,000 419,638 (55,362) Expenditures: Redemption of matured bonds 205,000 210,000 (51000) Interest 265,000 260,525 4,475 Miscellaneous 500 461 39 Total expenditures 470,500 470,986 (486) Excess (deficiency) of revenues over expenditures 4,500 (51,348) (55,848) Fund balance at June 30, 1981 73,168 73, 168 -- Fund balance at June 30, 1982 $ 77,668 $ 21 ,820 $(55,848) 44 CITY OF HUNTINGTON BEACH STATEMENT VIII Enterprise Funds Combining Balance Sheet June 30, 1982 Water Meadowlark Utility Golf Course Total Assets Current assets: Cash and term deposits $ 4,714,259 $ 139,386 $ 4,853,645 Accounts receivable-trade, net of $2,000 allowance 375,688 375,688 Deposits 32,269 -- 32,269 Interest receivable 65,435 1,670 67, 105 Total current assets 5, 187,651 141 ,056 5,328,707 Property, plant, and equipment, net of allowance for depreciation 28,471 ,806 3,393,905 31 ,865,711 Restricted assets - cash with fiscal agent — 511,600 -- 511,600 Total assets $34, 171 ,057 $3,534,961 $37,706,018 45 CITY OF HUNTINGTON BEACH STATEMENT VIII Enterprise Funds Combining Balance Sheet June 30, 1982 Water Meadowlark Utility Golf Course Total Liabilities and Fund Equity Current liabilities payable from current assets): Accounts payable $ 328,815 $ -- $ 328,815 Customer deposits 367,559 -- 367,559 Accrued interest payable -- 46,325 46,325 Accrued payroll 133,416 -- 133,416 Due to other funds 636 -- 636 Current installment of long-term notes payable 37,500 19,310 56,810 Current liabilities (payable from restricted assets): Current installment of bonds payable 150,000 -- 150,000 Accrued interest payable 12,725 -- 12025 Total current liabilities 1,030,651 65,635 1 ,096,286 Long-term liabilities: Notes payable net of current installment 450,895 1 ,847,687 2,298,582 Bonds payable in future years net of current installment 1,416,000 -- 1,416,000 Total liabilities 2,897,546 1 ,913,322 4,810,868 Fund equity: Contributed capital : In aid of construction 28,005, 111 -- 28,005, 111 From general fund 92,608 1 ,267,324 1 ,3599932 Total contributed capital 28,097,719 1,267,324 29,365,043 Retained earnings: Reserved for the retirement of revenue bonds 348,875 -- 348,875 Unreserved/undesignated 2,826,917 354,315 3,181,232 Total retained earnings 3, 175,792 354,315 3,530,107 Total fund equity 31 ,273,511 1,621 ,639 32,895, 150 Total liabilities and fund equity $34, 171,057 $3,534,961 $37,706,018 46 CITY OF HUNTINGTON BEACH STATEMENT IX Enterprise Funds Combining Statement of Revenue, Expenses and Changes in Equity Year Ended June 30, 1982 Water Meadowlark Utility Fund Golf Course Total Operating Revenues: Charges for current service $ 5,640,482 $ -- $ 5,640,482 Use of money and property -- 183,683 183,683 Other operating revenues 98,867 98,8b7 Total operating revenues 5,739,349 183,683 5,923,032 Operating expenses: Source of supply 1, 164,908 -- 1, 164,908 Pumping expense 1,418,205 -- 1,418,205 Water treatment 34, 158 -- 34, 158 Transmission and distribution 422,049 -- 422,049 Administrative and general 1,018,794 -- 1,018,794 Contributions to general fund in lieu of taxes 844, 197 -- 844, 197 Depreciation 1, 111,020 41,085 1 , 152, 105 Total operating expenses 6,013,331 41 ,085 6,054,416 Operating income (loss) (273,982) 142,598 (131,384) Non-operating revenues (expenses): Interest income 730,498 -- 730,498 Other revenue 87,968 -- 87,968 Interest expense (75,268) (131 ,953) (207,221) Total non-operating revenues (expenses): 743, 198 (131,953) 611,245 Income before operating transfer 469,216 10,645 479,861 Operating transfer to other fund (387,419) -- (387,419) Net Income 81 ,797 10,645 92,442 47 CITY OF HUNTINGTON BEACH STATEMENT IX Enterprise Funds Combining Statement of Revenue, Expenses and Changes in Equity Year Ended June 30, 1982 Water Meadowlark Utility Fund Golf Course Total Retained earnings at June 30, 1981, as previously stated 11 ,502,844 7,960 11 ,510,804 Prior period adjustment, increase (decrease) (8 506 220) 335,710 (8,1701510) Retained earnings at June 30, 1981 , restated 2,99 , 2 3 3 3,340,294 Increase in reserve for retirement of revenue bonds 97,371 -- 97,371 Retained earnings at June 30, 1982 $3,175,792 $354,315 $ 3,530,107 Contributed capital June 30, 1981 $15,214,301 $1 ,267,324 $16,481,625 Contributions by developers: Additional contribution unrecorded in prior years 11 ,805,532 -- 11 ,805,532 Contributions for year ended June 30, 1982 1,077,886 -- 1 ,077,886 Contributed capital , June 30, 1982 $28,097,719 $1 ,267,324 $29,365,043 48 CITY OF HUNTINGTON BEACH STATEMENT X Enterprise Funds Combining Statement of Changes in Financial Position Year Ended June 30, 1982 Water Meadowlark Utility Golf Course Total Sources of working capital : Operations: Net earnings $ 81 ,797 $10,645 $ 92,442 Item not requiring working capital : Depreciation 1, 111 ,020 412085 1 , 152, 105 Working capital provided from operations 1 , 192,817 51 ,730 1 ,244,547 Capital contributions received in the current year 1 ,077,886 -- 1 ,077,886 Increase in reserve for revenue bond retirement 97,371 -- 97,371 Total sources of working capital 2,368,074 51 ,730 2,4192804 Uses of working capital : Addition of fixed assets 2,186,753 -- 2,186,753 Increase in restricted assets - cash with fiscal agents 106,096 -- 106,096 Reclassification of note payable 37,244 -- 37,244 Reclassification and redemption of long-term bonds payable 210,000 19,310 229,310 Total uses of working capital 2,540,093 19,310 2,559,403 Net increase (decrease) in working capital $ (1721019) $32,420 $ (139,599) 49 CITY OF HUNTINGTON BEACH STATEMENT XI Internal Service Funds Combining Balance Sheet June 30, 1982 Public Employee Worker's Liability Health Compensation Self-Insurance Self- Insurance Self-Insurance Total Assets Cash and term deposits $2,410,733 $565,520 $2,271 ,731 $5,247,984 Interest receivable 31 ,875 6,814 28,766 67,455 Due from other funds -- -- 17,534 17,534 Total assets $2,442,608 $572,334 $2,318,031 $5,332,973 Liabilities and Fund Equity Liabilities: Accrued payroll $ $ -- $ 1 ,170 $ 1 ,170 Accounts payable -- 2,932 2,932 Insurance claims payable 1 ,307,362 303,719 1 ,431 ,278 3,042,359 Total liabilities 1,307,362 303,719 1,435,380 3,046,461 Fund Equity: Retained Earnings: Reserved for future insurance claims 750,000 -- -- 750,000 Unreserved 385,246 2682615 882,651 1 ,536,512 Total fund equity 1 ,135,246 268,615 882,651 2,286,512 Total liabilities and fund equity $2,442,608 $572,334 $2,318,031 $5,332,973 50 CITY OF HUNTINGTON BEACH STATEMENT XII Internal Service Funds Combining Statement of Revenues, Expenses and Changes, in Retained Earnings For Year Ended June 30, 1982 Public Employee Worker's Liability Health Compensation Self-Insurance Self- Insurance Self-Insurance Total Operating revenues: Charges for current service $ 164,267 $1 ,198,285 $ 544,706 $1,907,258 Total operating revenues 164,267 1 ,1981285 544,706 1 ,907,258 Operating expenses: Worker's compensation claims -- -- 1 ,437,758 1 ,437,758 Employee medical claims -- 1 ,109,035 -- 1 ,109,035 Administrative and general -- 77,232 58,817 136,049 Liability claims 702,223 -- -- 702,223 Other -- -- 4,621 4,621 Total operating expenses 702,223 1 ,186,267 1,501 ,196 3,389,686 Operating income ( loss) (537,956) _12,018 (956,490) (1 ,482,428) Non operating revenues: Interest income 371 ,087 84,417 345, 157 800,661 Net income (loss) (166,869) 96,435 (611 ,333) (681 ,767) Retained earnings at June 30, 1981 1 ,302,115 172,180 1 ,493,984 2,968,279 Retained earnings at June 30, 1982 $1L135,246 $ 2682615 $ 882,651 $2,286,512 51 CITY OF HUNTINGTON BEACH STATEMENT XIII Internal Service Funds Combi::ing Statement of Changes in Financial Position Year Ended June 30, 1982 Public Employee Worker's Liability Health Compensation Self-Insurance Self-Insurance Self-Insurance Total Sources of working capital : Operations: Net income ( loss) $(166,869) $ 96,435 $(611,333) $ (681,767) Increase (decrease) in working capital $(166,869) $ 96,435 $(611 ,333) $ (681 ,767) Changes in components of working capital : Increase (decrease) in current assets: Cash and term deposits $ 169,107 $148,687 $ 29,842 $ 347,636 Interest receivable (5,391) 351 (7,910) (12,950) Due from other funds -- -- 3,812 3,812 Total increase in current assets 163,716 149,038 25,744 338,498 Decrease ( increase) in current liabilities: Accrued payroll -- -- (181) (181) Accounts payable 35 -- 15,364 15,399 Insurance claims payable (330,620) (52,603) (652,260) (1 ,035,483) Total decrease ( increase) in current liabilities (330,585) (52,603) (637,077) (1 ,020,265) Increase (decrease) in working capital $(166,869) $ 96,435 $(611 ,333) $ (6811767) 52 CITY OF HUNTINGTON BEACH STATEMENT XIV Expendable Trust Funds combining Balance Sheet June 30, 1982 Employee Special Deferred Improvement Deposit Compensation Act Total ASSETS Cash and term deposits $127,350 $1 ,492,178 $ 6,541 $1 ,626,O69 Notes receivable, net of unearned discount -- 978,879 -- 978,879 Total assets $127,350 $2,471 ,057 $ 6,541 $22604,948 LIABILITIES AND FUND BALANCE Liabilities: Refundable deposits $127,350 $ -- $ -- $127,350 Bond principal and interest payable -- -- 6,541 6,541 Total liabilities 127,350 -- 6,541 133,891 Fund balances: Unreserved-undesignated -- 2,471 ,057 -- 2,471,057 Total liabilities and fund balances $127,350 $2,471 ,057 $ 6,541 $2,604,948 53 This Page Left Blank Intentionally CITY OF HUNTINGTON BEACH STATEMENT XV Expendable Trust Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 1982 Employee Special Deferred Improvement Deposit Compensation Act Total Revenues: Contributions $ -- $ 311 ,455 $ -- $ 311 ,455 Interest -- 373, 123 -- 373, 123 Total revenues -- 684,578 -- 684,578 Expenditures: Paid to participants in employee deferred compensation plan -- 65,442 -- 65,442 Total expenditures -- 65,442 -- 65,442 Excess of revenues over expenditures -- 619, 136 -- 619, 136 Fund balances at June 30, 1981 -- 1 ,851,921 -- 1 ,851 ,921 Fund balances at June 30, 1982 $ -- $2,471 ,057 -- $21471,057 54 Statistical Section SCHEDULE I STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES Last Ten Fiscal Years (Unaudited) Use of From Charges Fiscal Other Licenses Fines Money Other for Current Other Year Taxes Permits Forfeitures Property Agencies Services Revenue 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 ,774,192 639,964 41,427 1976 5,722,103 2,588,932 135,216 907,470 2,040,207 825,912 49,277 1977 6,785,656 2,817,209 214,808 1 ,050,938 2,567,992 942,760 48,714 1978 7,953,048 2,653, 129 216,362 1 ,415,212 3,076,250 938, 182 99,600 1979 12,825,591 2,485,540 224,026 1 ,814,115 5,502,464 953,790 84,458 1980 14,557,330 2,597,954 398,877 1 ,820,700 3,874,763 1 ,158,294 90,149 1981 16,994,338 2,984,303 1,526,072 2,552,637 4,495,328 1 ,382,055 366, 125 1982 19,040,227 2,736,785 1 ,515,914 3,223,1t3 2,671 ,003 1 ,153,439 529,704 55 SCHEDULE 11 STATEMENT OF GENERAL FUND EXPENDITURES Last Ten Fiscal Years (Unaudited) Fiscal Community Public Safety Total Year Administrative Services Services Support General Fund 1973 $1 ,330,792 $ 5,978,271 $ 8,489,612 $ 720,979 $16,519,654 1974 1 ,494,073 6,601,075 9,541 ,847 906,900 18,543,895 1975 2,802,270 6,977,233 10,858,325 813,411 21 ,451,239 1976 3, 194,089 6,653,560 12,233,405 1 ,247,564 23,328,618 1977 2,664,478 7,747,535 14,074,326 2,493,348 26,979,687 1978 3,635,719 8,673,505 14,953,652 1 ,814,454 29,077,330 1979 5,594,195 7,786,972 16,709,463 2,375,756 32,466,386 1980 6,723,175 11 ,387,668 16,789,782 2,001,019 36,901 ,644 1981 5,001 ,191 11 ,784,064 18,916,394 4,792,744 40,494,393 1982 4,493,484 15,516,826 20,429,266 3,6542024 44,093,600 56 mm no SCHEDULE III STATEMENT OF ASSESSED VALUE, DEBT LIMIT AND RATIO OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND PER CAPITA Last Ten Fiscal Years (Unaudited) % Bonded Debt to Fiscal Estimated Total Legal Debt Total General Legal Assessed Bonded Debt Year Population Assessed Value Limit (15%) Bonded Debt Debt Margin Value Per Capita 1973 143,325 $ 410,283,199 $ 61 ,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 1469400 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 1619200 854,321 ,745 128, 148,262 5,020,000 123, 128,262 .59 31. 14 1979 t67,500 831 ,783,620 124,767,543 4,810,000 119,957,543 .58 28.72 1980 172,200 983,927,670 147,589,151 4,590,000 142,999, 151 .46 26.66 1981 172,813 1,074,304,701 161 , 145,705 4,360,000 156,785,705 .41 25.23 *1982 174,847 5,219,684,140 195,738,155 4,150,000 191 ,588,155 .32 23.74 * The method used to determine Assessed Valuation has been changed. Beginning with FY-1982 Assessed Value will be based on 100% of market value. Previously, assessed valuation was 25% of market value. Accordingly, the legal debt limit for years subsequent to 1981 will equal 3.75% of the total assessed value. 57 SCHEDULE IV STATEMENT OF TAX DELINQUENCIES AND IMPOUNDS Last Ten Fiscal Years (Unaudited) SECURED TAXES UNSECURED TAXES Fiscal Tax Total Total Delinquency Total Total Delinquency Year Rate Levy Collections Amount Percent Levy Collections Amount Percent Impounds 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 81852,049 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 .23 328,451 1978 1.55 12,563,144 12,336,834 186,310 1 .49 742,053 711 ,519 30,534 4. 11 204,883 1979 . 1972 5,635,879 5,525,120 110,759 1.97 561 ,420 537,307 24, 113 4.30 195,202 1980 . 1972 8,842,899 8,602,751 240, 148 2.72 861 ,976 839,468 22,508 2.61 2,962 1981 .1854 10,224,680 9,872,496 352,184 3.44 827, 168 789,078 38,090 4.60 28,585 1982 .04635 10,300,308 9,893,563 406,745 3.98 808,024 737,425 46,596 5.77 46,59b 58 mm r SCHEDULE V STATEMENT OF FUTURE GENERAL OBLIGATION BONDED DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT JUNE 30, 1982 (Unaudited) Fiscal Year Principal Interest Total 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 3309000 138,300 468,500 1991 350,000 118,500 468,500 1992 37 O N 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 $42150,000 $1 ,943,750 $6,093,750 59 SCHEDULE VI STATEMENT OF FUTURE WATER REVENUE BOND REQUIREMENTS BY YEAR BASED ON OUTSTANDING DEBT JUNE 30, 1982 (Unaudited) Fiscal Year Principal Interest Total 1983 $ 150,000 $ 73,800 $ 223,800 1984 145,000 68,700 213,700 1985 160,000 63,350 223,350 1986 160,000 57,750 217,750 1987 170,000 51,975 221 ,975 1988 180,000 45,850 225,850 1989 180,000 39,550 219,550 1990 190,000 33,075 223,075 1991 200,000 26,250 226,250 1992 31,000 3,850 34,850 Total $1 ,566,000 $464,150 $2,030,150 60 SCHEDULE VII HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION (a) STATEMENT OF BONDED DEBT JUNE 30, 1982 (Unaudited) Date Years Rate Bonds Bonds Bonds of of of Original Outstanding Matured Outstanding Description Bonds Maturity Interest Issue July 1, 1981 During Year June 30, 1982 Civic Center Jan. 1972 1975-1982 7.00% $ 2,010,000 $ 310,000 $310,000 $ -- Leasehold 1983 5.70 3301000 330,000 -- 330,000 Mortgage Bonds, 1984-1996 5.50. 7,040,000 6,985,000 -- 6,985,000 First Issue 1997-1998 5.00 1 ,720,000 1 ,595,000 -- 1 ,595,000 Total 11,100,000 9,220,000 310,000 8,910,000 Central Library Sept. 1972 1975-1983 7.00% 1 ,220,000 480,000 150,000 330,000 Leasehold 1984 5.90 180,000 180,000 -- 180,000 Mortgage Bonds 1985 5.40 190,000 190,000 -- 190,000 Second Issue 1986-1988 5.50 640,000 640,000 -- 6401000 1989-1991 5.60 770,000 770,000 -- 7701000 1992 5.70 290,000 290,000 290,000 1993-1995 5.75 965,000 965,000 -- 965,000 1996-1997 5.00 745,000 745,000 -- 745,000 Total 5,000,000 4,260,000 150,000 4, 110,000 Total bonded debt $16,100,000 $13,480,000 $460,000 $13,020,000 (a) The above schedule has been included 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. 61 SCHEDULE VIII HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT (a) JUNE 30, 1982 (Unaudited) Fiscal Civic Center Issue Library Issue Total Year Principal Interest Total Principal Interest Total Principal Interest Total 1983 $ 330,000 $ 482,735 $ 812,735 $ 160,000 $ 225,967 $ 385,967 $ 490,000 $ 708,702 4 1 , 198,702 1984 360000 463,925 823,925 170,000 214,417 384,417 530,000 678,342 1 ,208,342 1985 380,000 444,125 824,125 180,000 203057 383,157 560,000 647,282 1 ,207,282 1986 400,000 423,225 823,225 190,000 192,717 382,717 590,000 615,942 1 ,205,942 1987 430,000 401,225 831 ,225 200,000 182,087 382,087 630,000 583012 1 ,213,312 1988 450000 377,575 827,575 210,000 170,812 380,812 660,000 548,387 1 ,208087 1989 465,000 352,825 817,825 230,000 158,712 388,712 695,000 511 ,537 1 ,206,537 1990 530,000 327,250 857,250 240,000 145,667 385,667 770,000 472,917 1 ,242,917 1991 555,000 298, 100 853000 260,000 131 ,667 391 ,667 815,000 429,767 1 ,244,767 1992 600,000 267,575 867,575 270,000 116,827 386,827 870,000 384,402 1 ,254,40z 1993 640,000 234,575 874,575 290,000 101,002 391 ,002 930,000 335,577 1 ,265,577 1994 675,000 199075 874,375 305,000 83,968 388,968 980,000 283,343 1 ,263,343 1995 725,000 162,250 887,250 320,000 66,000 3869000 1 ,045,000 228,250 1 ,273,z50 1996 775,000 122,375 897075 340,000 47,025 387,025 1, 115,000 16g,400 1,284,400 1997 830,000 79,750 909,750 360,000 28,250 388,250 1 ,190,000 108,000 1 ,298,000 1998 765,000 38,250 803,250 385,000 9,625 394,625 1, 150,000 47,875 1, 197,875 Total $8 910,000 $4,675, 135 $13,585035 $4, 110,000 $2,077,900 $6,187,900 $13,020,000 $6,753,035 $19,773,035 Principal Due: January September Interest Due: July and January September and March (a) The above schedule has been included herein for informational purposes only. The Huntington Beach Public Facilities Corporation is an independent entity. Accordingly, the obligations of the Public Facilities Corporation do not constitute an obligation of the City. 62 SCHEDULE IX PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF BONDED DEBT (a) JUNE 30, 1982 (Unaudited) Date Years Rate Bonds Bonds Bonds of of of Original Outstanding Matured Outstanding Description Bonds Maturity Interest Issue July 1, 1981 During Year June 30, 1982 1968 Parking Sept. 1968 1970-1972 6.00% $ 150,000 $ -- $ -- Revenue Bonds 1973-1979 4.75 470,000 -- -- -- 1980-1985 5.00 570,000 485,000 85,000 400,000 1986-1993 5.25 1, 110,000 12110,000 -- 121102000 Total - $2,300,000 $1 ,595,000 $85,000 $1 ,510,000 SCHEDULE X PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR BASED ON BONDED DEBT (a) JUNE 30, 1982 Fiscal Year Principal Interest Total 1983 $ 90,000 $ 76,025 $ 1662025 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 $1 ,510,000 $524,488 $22034,488 (a) The above schedules have been included herein for informational purposes only. The Parking Authority is an independent entity. Accordingly, its obligations are not obligations to the City. 63 SCHEDULE XI CITY OF HUNTINGTON BEACH MISCELLANEOUS STATISTICS JUNE 30, 1982 (Unaudited) Date of incorporation 1909 Form of government Charter City - Council - City Administrator Area 28 square miles Population 174,847 Miles of streets 362.4 miles Number of street lights 12,275 Fire Protection: Number of stations 7 Number of firemen and officers 141 Police protection: Number of stations 1 Number of policemen and officers 194 Municipal water department: Number of customers 45, 114 Average daily consumption 24.9 million gal . Miles of water mains 423 Sewers: Sanitary sewers 270 miles Storm sewers 31 miles Building permits issued 2,533 per year Recreation and Culture: Number of parks 54 Number of people using parks 640,000 Acres of beach 43.3 Number of people using beaches 3.7 million Number of libraries 4 Number of volumes 382,118 Total library circulation 1 ,004,063 Number of people using libraries 89,383 Employees 1 ,250