HomeMy WebLinkAboutFY 1982/1983 City of Huntington Beach Comprehensive Annual CITY OF
T
HUNTING ON
• BEACH
JSTATE OF CALIFORNIA
* ANNUAL
HUNTINGTON BEACH
FINANCIAL
REPORT
FOR THE FISCAL YEAR ENDED JUNE,30 1983
ARTHUR YOUNG & COMPANY
SUITE 900
3200 PARK CENTER DRIVE
P. O. BOX 2410
COSTA MESA, CALIFORNIA 92626
(714) 850-9500
The Members of the City Council
City of Huntington Beach, California
We have examined the combined financial statements of the City of Huntington Beach at June 30, 1983 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.
In our opinion, the statements mentioned above present fairly the financial position of the City of Huntington Beach at June
30, 1983 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, except for the change, with which we concur, in the method of accounting for compensated absences.
Our examination was made for the purpose of forming an opinion on the combined financial statements, 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 purposes of additional analysis and are not a required part of the
combined financial statements of the City of Huntington Beach. Such additional financial information has been subjected to
the auditing procedures applied in our examination of the combined financial statements and, in our opinion, is fairly
stated in all material respects 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. These statistical exhibits were not audited by us
and, accordingly, we do not express an opinion on them.
September 16, 1983
Combined Financial Statements,
_ _ 0040J-Page 1
CITY OF HUNTINGTON BEACH STATEMENT I
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1983
Governmental Fund Types Proprietary Fund Types Fiduciary Account. Groups
Fund Types General General Total
Special Debt Internal Expendable fixed long-term (Memorandum
General revenue service Enterprise service trust assets obligations Only)
ASSETS
Cash (including short-term
interest-bearing
securities of $29,908,053) $ 9,198,511 $ 9,892,715 $15,434 $ 5,119,898 $4,717,248 $2,955,332 $ - $ - $ 31,899,138
Accounts and interest receivable,
net of allowance for
uncollectible accounts of $93,434 182,595 84,578 - 376,879 35,477 - - - 679,529
Property taxes receivable, net
of allowance for uncollectible
taxes of $531,481 464,636 - 11,314 - - - - - 475,950
Notes receivable, net of allowance
of $234,339 - 194,664 - - - 528,806 - - 723,470
Other assets 263,992 - - 32,269 - - - - 296,261
Due from Redevelopment Agency 640,602 2,750,000 - - - - - 3,390,602
Due from other funds 332,409 - - - 96,006 - - - 428,415
Due from other governmental units 748,678 956,000 - - - - - - 1,704,678
Leased facilities under
financing leases (Note 4) - - - - - - 13,913,304 - 13,913,304
Property, plant and equipment,
net of allowance for
depreciation (Note 3) - - - 31,795,980 - - 45,039,464 - 76,835,444
Restricted assets - cash
and investments (Note 6 ) - - - 566,591 - - - - 566,591
Amount available in debt service fund - - - - - - - 26,748 26,748
Amount to be provided for
debt retirement - - - - - - - 3,903,252 3,903,252
Amount to be provided for
future lease payments (Note 4) - - - - - - 11,865,107 11,865,107
Amount to be provided for future
vacation and sick leave - - - - - - - 2,550,000 2,550,000
$11,831,423 $13,877,957 $26,748 $37,891,617 $4,848,731 $3,484,138 $58,952,768 $18,345,107 $149,258,489
See accompanying notes to combined financial statements.
0040J-Page 2
CITY OF HUNTINGTON BEACH STATEMENT I
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1983
Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups
Fund Types General General Total
Special Debt Internal Expendable fixed long-term (Memorandum
General revenue service Enterprise service trust assets obligations Only)
LIABILITIES
Accounts payable $ 917,290 $ 772,545 $ - $ 577,026 $ 79,489 $ - $ - $ - $ 2,346,350
Accrued salaries and wages 1,326,646 7,394 - 148,675 7,101 - - 1,489,816
Liability for self-insurance
claims - - - - 3,351,219 - - - 3,351,219
Refundable deposits 345,292 1,717 - 409,790 - 104,244 - - 861,043
Due to other funds 20,169 - - 408,246 - - - - 428,415.
Interest payable - - - 46,325 - - - - 46,325
Current installment of
notes payable (Notes 7, 8) - - - 59,662 - 868 - - 60,530
Current installment of bonds and
interest payable from
restricted assets - - - 156,875 - - - - 156,875
Deferred rental and other
income 578,913 2,750,000 - - - - - - 3,328,913
Lease obligations (Note 4) - - - - - - - 11,865,107 11,865,107
Bonds, net of current
installment (Note 6) - - - 1,271,000 - - - 3,930,000 5,201,000
Notes payable, net of current
installment (Notes 7, 8) - - - 2,238,164 - - - - 2,238,164
Obligation for future .
vacation and sick leave - - - - - - - 2,550,000 2,550,000
3,188,310 3,531,656 - 5,315,763 3,437,809 105,112 - 18,345,107 33,923,757
Commitments and contingencies
(Note 4, 5, 8, 9)
0040J-Page 3
CITY OF HUNTINGTON BEACH STATEMENT I
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1983
Governmental Fund Types Proprietary Fund Types Fiduciary Account Groups
Fund Types General General Total
Special Debt Internal Expendable fixed long-term (Memorandum
General revenue service Enterprise service trust assets obligations Only)
FUND EQUITIES
Investment in general property
and equipment - - - - - - 58,9523-768 - 58,952,768
Contributed capital:
From developers - - - 28,628,945 - - - - 28,628,945
From General Fund - - - 1,359,932 - - - - 1,359,932
Retained earnings
Allocated for:
Revenue bond retirement - - - 409,716 - - - - 409,716
Future insurance claims - - - - 500,000 - - - 500,000
Unallocated - - - 2,177,261 910,922 - - 3,088,183
Fund balances -
Reserved:
Encumbrances 1,544,122 1,910,049 - - - - - - 3,454,171
Amounts due beyond one year 804,785 518,757 - - - - - - 1,323,542
Reimbursement agreements (Note 5) - 622,825 - - - - - - 622,825
Inventories 176,847 - - - - - - - 176,847
Unreserved:
Designated for:
Approved projects by
City Council 25,000 170,475 - - - - - - 195,475
Vacation and sick leave 2,550,000 - - - - - - - 2,550,000
Fund balances available (Note 9) 3,542,359 7,124,195 26,748 - - 3,379,026 - - 14,072,328
8,643,113 10,346,301 26,748 32,575,854 1,410,922 3,379,026 58,952,768 - 115,334,732
$11,831,423 $13,877,957 $26,748 $37,891,617 $4,848,731 $3,484,138 $58,952,768 $18,345,107 $149,258,489
See accompanying notes to combined financial statements.
0040J-Page 4
CITY OF HUNTINGTON BEACH STATEMENT II
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types
and Expendable Trust Funds
Year Ended June 30, 1983
Fiduciary
Governmental Fund Types Fund Types Total
Special Debt Expendable (Memorandum
General revenue service trust Only)
Revenues:
General property taxes $15,356,424 $ - $474,024 $ - $15,830,448
Other local taxes 20,661,102 - - - 20,661,102
Licenses and permits 2,673,912 474,069 - - 3,147,981
Fines and forfeitures 1,748,817 - - - 1,748,817
Use of money and property 3,237,373 1,313,387 - 468,725 5,019,485
Aid from other governmental units 1,459,278 6,494,781 - - 7,954,059
Charges for current services 1,916,286 1,001,163 - - 2,917,449
Employee contributions to deferred
compensation plan - - - 482,850 482,850
Other 1,179,902 - - - 1,179,902
Total revenues 48,233,094 9,283,400 474,024 951,575 58,942,093
Expenditures:
Administrative 4,592,245 - - - 4,592,245
Support services 3,237,842 31,271 - - 3,269,113
Community services 18,533,206 340,070 - - 18,873,276
Public safety 22,383,746 1,864,442 - - 24,248,188
Highways and streets - 1,279,388 - - 1,279,388
Drains and sewers - 683,764 - - 683,764
Park development - 2,224,325 - - 2,224,325
Paid to participants in
employee deferred compensation plan - - - 43,606 43,606
Loan subsidies and loan losses - 79,601 - - 79,601
Grants - 1,909,951 - - 1,909,951
Miscellaneous - - 646 - 646
Debt service:
Principal retirement - - 220,000 - 220,000
Interest - - 248,450 - 248,450
Total expenditures 48,747,039 8,412,812 469,096 43,606 57,672,553
r -
L
City Of Huntington Beach
Fiscal Year A ual
Ended June 30, 1983 •Fi it •
a ia
Report
DEPARTMENT OF ADMINISTRATIVE SERVICES .
Robert Franz, Chief
HUNTINGTON BEACH
CITY OF HUNTINGTON BEACH
ANNUAL FINANCIAL REPORT
June 30, 1983
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
Elected City Officials
Departments of the City
Statement 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 III 6
Combined Statement of Revenues, Expenses and Changes in Equity
All Proprietary Fund Types IV 10
Combined Statement of Changes in Financial Position - All Proprietary Fund Types V 12
Notes to Combined Financial Statements 13
Additional Financial Information:
Combining Financial Statements Schedule Page
General Fund:
Statement of Appropriations, Expenditures and Encumbrances I 29
Special Revenue Funds:
Combining Balance Sheet II 30
Combining Statement of Revenues, Expenditures and Changes in Fund Balances III 31
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Budgetary Basis Actual IV 33
TABLE OF CONTENTS (CONTINUED)
Schedule Page
FINANCIAL SECTION (continued)
Additional Financial Information (continued):
Combining Financial Statements (continued)
Enterprise Funds:
Combining Balance Sheet V 37
Combining Statement of Revenues, Expenses and Changes in Equity VI 38
Combining Statement of Changes in Financial Position VII 39
Expendable Trust Funds:
Combining Balance Sheet VIII 40
Combining Statement of Revenues, Expenditures and Changes in Fund Balances IX 41
STATISTICAL EXHIBITS (Unaudited) Exhibit Page
Statement of General Fund Revenues - Other than Property Taxes - Last Ten Fiscal Years I 42
Statement of General Fund Expenditures - Last Ten Fiscal Years II 43
Statement of Assessed Value, Debt Limit and Ratio of General Obligation Bonded Debt to Assessed Value and Per
Capita - Last Ten Fiscal Years III 44
Statement of Tax Delinquencies and Impounds - Last Ten Fiscal Years IV 45
Statement of Bonded Debt V 46
Statement of Future General Obligation Bonded Debt Requirements by Year Based on Outstanding Debt VI 47
Statement of Future Water Revenue Bond Requirements by Year Based on Outstanding Debt VII 48
Miscellaneous Statistics VIII 49
OFFICE OF THE
CHIEF OF ADMINISTRATIVE SERVICES
ROBERT J. FRANZ, 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, 1983. 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 the General Fund totaled $51,710,607 in FY-1983, an increase of $6,694,074 or 14.9%
when compared to FY-1982. The revenue from various sources and the changes as compared with FY-1982 are as follows:
Percent Change from FY-1982
Source Amount of Total Amount Percent
General property taxes $15,356,424 29.7% $2,412,016 18.6%
Other local taxes 20,661,102 40.0 1,620,875 8.5
Licenses and permits 2,673,912 5.2 (62,873) (2.3)
Fines and forfeitures 1,748,817 3.4 232,903 15.4
Use of money and property 3,237,373 6.2 14,260 0.4
Aid from other governmental units 1,459,278 2.8 (1,211,725) (45.4)
Charges for current services 1,916,286 3.7 762,847 66.1
Other 1,179,902 2.3 650,198 122.7
Transfers from other funds 3,477,513 6.7 2,275,573 189.3
Total $51,710,607 100.07. $6,694,074 14.9%
Gross expenditures and encumbrances for the General Fund totaled $50,291,161 in FY-1983 -- an increase of $5,302,694 or
11.8% over FY-1982.
OFFICE OF THE
CHIEF OF ADMINISTRATIVE SERVICES
ROBERT J. FRANZ, CHIEF
The undesignated General Fund balance increased from $1,546,489 in FY-1982 to $3,542,359 in FY-1983, an increase of $1,995,870 or
129%. The City continues to reserve fund balance for accrued employee vacation and sick leave which increased from $2,282,473 in
FY-1982 to $2,550,000 in FY-1983, an increase of $267,527 or 11.7%.
Assessed valuation increased by $452,529,858 to $5,672,213,998 in FY-1983 -- an 8.7% increase. In FY-1984 it is anticipated the
assessed valuation will increase to $6,292,926014 an increase of $620,712,316 or 10.9%. A comparison of assessed valuation over
the last five years with anticipated FY-1984 assessed valuation is as follows:
Assessed Change from Prior Year
Fiscal Year Valuation Amount Percent
1984 $6,292,926,314 $ 620,712,316 10.9%
1983 5,672,213,998 452,529,858 8.7
1982* 5,219,684,140 922,465,336 21.5
1981 4,297,218,804 361,508,124 9.2
1980 3,935,710,680 608,576,200 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 1980 and FY 1981
assessed valuation data indicated above was restated to the new method for the purpose of presenting comparable data.
Outstanding general obligation bonds as of June 30, 1983 totaled $3,930,000. This is comprised of 1963 Park Bonds. There is, as
of June 30, 1983, $1,416,000 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 $.05756 per $100 of
assessed valuation. This is in addition to the City's share of the overall $1.00 per $100 of assessed valuation permitted as a
result of the passage and implementation of Proposition 13.
For fiscal year 1984, the tax rate necessary to provide funds for the voter approved indebtedness will be $.05682 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.
OFFICE OF THE
CHIEF OF ADMINISTRATIVE SERVICES
ROBERT J. FRANZ, CHIEF
Operating revenues amounting to $5,732,984 were derived from water sales, service charges and connection fees during fiscal year
1983. Operating expenses, including depreciation of $1,157,496 (a non-cash expense), totaled $6,987,165. Net loss after
inclusion of non-operating items was $964,664 for fiscal year 1983.
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.
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 & 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 i est in planning a conducting the fiscal affairs of this city in a responsible and progressive manner.
Re c u ly s ted
e J.
Chief of Ad inistrative Services
RJF:ds
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CITY OF HUNTINGTON BEACH
ELECTED OFFICIALS
CITY COUNCIL
Donald A. MacAllister Mayor
Jack Kelly Mayor Pro Tem
Ruth S. Bailey Councilperson
Ruth E. Finley Councilperson
Robert P. Mandic, Jr. Councilperson
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
Robert J. Franz 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
Financial Section
- 0040J-Page 5
CITY OF HUNTINGTON BEACH STATEMENT II
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types
•and Expendable Trust Funds
Year Ended June 30, 1983
Fiduciary
Governmental Fund Types Fund Types Total
Special Debt Expendable (Memorandum
General revenue service trust Only)
Excess- of revenues over (under) expenditures (513,945) 870,588 4,928 907,969 1,269,540
Other financing sources:
Operating transfers from (to) other funds 3,477,513 (3,387,312) - - 90,201
Increase in inventories 176,847 - - - 176,847
•Excess of revenues and other financing sources
over (under) expenditures 3,140,415 (2,516,724) 4,928 907,969 1,536,588
Fund balances, beginning of year 5,502,698 12,863,025 21,820 2,471,057 20,858,600
Fund balances, end of year $8,643,113 $10,346,301 26,748 $3,379,026 $22,395,188
See accompanying notes to combined financial statements.
0040J-Page 6
CITY OF HUNTINGTON BEACH STATEMENT III
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Budgetary Basis Actual
Governmental Fund Types
Year Ended June 30, 1983
General Fund Special Revenue Funds
Budgetary Variance - Budgetary Variance -
Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
General property taxes $15,471,900 $15,356,424 $ (115,476) $ - $ - $ -
Other local taxes 20,275,000 20,661,102 386,102 - - -
Licenses and permits 2,647,000 2,673,912 26,912 350,500 474,069 123,569
Fines and forfeitures 1,616,000 1,748,817 132,817 - - -
Use of money and property 3,209,000 3,237,373 28,373 1,206,391 1,313,387 106,996
Aid from other governmental units 2,124,697 1,459,278 (665,419) 10,835,777 6,494,781 (4,340,996)
Charges for current services 1,609,000 1,916,286 3073,286 884,488 1,001,163 116,675
Other 548,200 1,179,902 631,702 2,000 - (2,000)
Total revenues 47,500,797 48,233,094 732,297 13,279,156 9,283,400 (3,995,756)
Expenditures:
Administrative 4,821,556 4,619,267 202,289 38 - 38
Support services 3,507,605 3,347,701 159,904 100,544 100,399 145
Community services 20,581,843 19,369,141 1,212,702 297,236 360,398 (63,162)
Public safety 23,572,400 22,955,052 617,348 1,956,085 1,942,443 13,642
Highway and streets - - - 3,307,519 2,074,071 1,233,448
Drains and sewers - - - 2,841,887 760,577 2,081,310
Park development - - - 2,500,169 2,497,284 2,885
Loan subsidies and loan losses - - - 591,000 79,601 511,399
Grants - - - 4,853,423 2,508,088 2,345,335
Miscellaneous - - - (2,743) - (2,743)
Total expenditures 52,483,404 50,291,161 2,192,243 16,445,158 10,322,861 6,122,297
0040J-Page 7
CITY OF HUNTINGTON BEACH STATEMENT III
Combined Statement of Revenues, Expenditures and
Changes in Fund- Balances - Budget and Budgetary Basis Actual
Governmental Fund Types
Year Ended June 30, 1983
General Fund Special Revenue Funds
Budgetary Variance - Budgetary Variance -
Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable)
Excess of revenues over (under) expenditures (4,982,607) (2,058,067) 2,924,540 (3,166,002) (1,039,461) 2,126,541
Other financing' sources:
Operating transfers from (to) other funds 3,742,200 3,477,513 (264,687) (3,420,296) (3,387,312) 32,984
. .. Increase in inventories - 176,847 176,847 - - -
Excess of revenues- and ,other financing
sources over (under) expenditures (1,240,407) 1,596,293 2,836,700 (6,586,298) (4,426,773) 2,159,525
Fund balances, beginning of year 5,502,698 5,502,698 - 12,863,025 12,863,025 -
Budgetary basis fund balances, end of year 4,262,291 7,098,991 2,836,700 6,276,727 8,436,252 2,159,525
Encumbrances outstanding, end of year 1,544,122 1,5441122 - 1,9102,049 1,910,049 -
GAAP basis fund balances, end of year $ 5,806,413 $ 8,643.113 $2,836,700 $ 8,186,776 $10,346,301 $2,159,525
See• accompanying._ notes:.to.:combined financial statements.
0040J-Page 8
CITY OF HUNTINGTON BEACH STATEMENT III
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Budgetary Basis Actual
Governmental Fund Types
Year Ended June 30, 1983
Total
Debt Service Fund (Memorandum Only)
Budgetary Variance - Budgetary Variance -
Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
General property taxes $468,450 $474,024 $5,574 $15,940,350 $15,830,448 $ (109,902)
Other local taxes - - - 20,275,000 20,661,102 386,102
Licenses and permits - - - 2,997,500 3,147,981 150,481
Fines and forfeitures - - - 1,616,000 1,748,817 132,817
Use of money and property - - - 4,415,391 4,550,760 135,369
Aid from other governmental units - - - 12,960,474 7,954,059 (5,006,415)
Charges for current services - - - 2,493,488 2,917,449 423,961
Other - - - 550,200 1,179,902 6291,702
Total revenues 468,450 474,024 5,574 61,248,403 57,990,518 (3,257,885)
Expenditures:
Administrative - - - 4,821,594 4,619,267 202,327
Support services - - - 3,608,149 3,448,100 160,049
Community services - - - 20,879,079 19,729,539 1,149,540
Public safety - - - 25,528,485 24,897,495 630,990
Highways and streets - - - 3,307,519 2,074,071 1,233,448
Drains and sewers - - - 2,841,887 760,577 2,081,310
Park development - - - 2,500,169 2,497,284 2,885
Loan subsidies and loan losses - - - 591,000 79,601 511,399
Grants - - - 4,853,423 2,508,088 2,345,335
Miscellaneous - 646 (646) (2,743) 646 (3,389)
Debt service:
Principal retirement 220,000 220,000 - 220,000 220,000 -
Interest 248,450 248,450 - 248,450 248,450 -
Total expenditures 468,450 469,096 (646) 69,397,012 61,083,118 8,313,894
_ M M M M 0040J-Page 9
CITY OF HUNTINGTON BEACH STATEMENT III
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - -Budget and Budgetary Basis Actual
-Governmental Fund Types
Year Ended June 30, 1983
Total
Debt Service Fund (Memorandum Only)
Budgetary Variance - Budgetary Variance -
Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable)
Excess of revenues over (under) expenditures - 4,928 4,928 (8,148,609) (31,092,600) 5,056,009
Other financing sources:
Operating transfers from (to) other funds - - - 321,904 90,201 (231,703)
Increase in inventories - - - - 176,847 176,847
Excess of revenues and other financing
sources over (under) expenditures - 4,928 4,928 (7,826,705) (2,825,552) 5,001,153
Fund balances, beginning of year 21,820 21,820 - 18,387,543 18,387,543 -
Budgetary basis fund balances, end of year 21,820 26,748 4,928 10,560,838 15,561,991 5,001,153
Encumbrances outstanding, end of year - - - 3,454,171 3,454,171 -
GAAP basis fund balances, end of year 21,820 L26..748 4 928 $14,015,009 $19,016,162 $ 5,001,153
See accompanying notes to combined financial statements.
1
I
0040J-Page 10
CITY OF HUNTINGTON BEACH STATEMENT IV
Combined Statement of Revenues, Expenses and
Changes in Equity - All Proprietary Fund Types
Year Ended June 30, 1983
Proprietary Fund Types
Internal Total
Enterprise service (Memorandum Only)
Operating revenues:
Charges for current services $ 5,587,451 $1,874,665 $ 7,462,116
Golf course rentals 193,166 - 193,166
Other 145,533 - 145,533
Total operating revenues 5,926,150 1,874,665 7,800,815
Operating expenses:
Purchased water 1,014,187 - 1,014,187
Pumping expense 1,546,710 - 1,546,710
Water treatment 52,269 - 52,269
Transmission and distribution 1,421,051 - 1,421,051
Administrative and general 947,494 537,389 1,484,883
Contribution to General Fund in
lieu of taxes 847,958 - 847,958
Depreciation 1,198,438 - 1,198,438
Workers' compensation claims - 1,249,884 1,249,884
Employee medical claims - 1,395,033 1,395,033
Liability claims - 519,576 519,576
Total operating expenses 7,028,107 3,701,882 10,729,989
0040J-Page 11
CITY OF HUNTINGTON BEACH STATEMENT IV
Combined Statement of Revenues, Expenses and
Changes in Equity - All Proprietary Fund Types
Year Ended June 30, 1983
Proprietary Fund Types
Internal Total
Enterprise service (Memorandum Only)
Operating loss (1,101,957) (1,827,217) (2,929,174)
Non-operating revenues (expenses) :
Interest income 732,079 634,419 1,366,498
Other income 56,763 - 56,763
Interest expense (222,606) - (222,606)
Net non-operating revenues 566,236 6342,419 1,200,655
Loss before operating transfers (535,721) (1,192,798) (1,728,519)
Operating transfers from (to) other funds (407,409) 317,208 (90,201)
Net loss (943,130) (875,590) (1,818,720)
Retained earnings, beginning of year 32530,107 2,286,512 5,816,619
Retained earnings, end of year $ 2,586,977 $1,410,922 $ 3,997,899
-Contributed capital,_ beginning of year $29,365,043 $ - $29,365,043
Capital contributions received 623,834 - 623,834
Contributed capital, end of year $29,988,877 - $29,988,877
See accompanying notes to combined financial statements.
0040J-Page 12
CITY OF HUNTINGTON BEACH STATEMENT V
Combined Statement of Changes in Financial Position All Proprietary Fund Types
Year Ended June 30, 1983
Proprietary Fund Types
Internal Total
Enterprise service (Memorandum Only)
Sources of working capital:
Operations:
Net loss $ (943,130) $(875,590) $(1,818,720)
Depreciation not requiring working capital 19198,438 - 1,198,438
Working capital provided from operations 255,308 (875,590) (620,282)
Increase in contributed capital 623,834 - 623,834
Total sources of working capital 879,142 (875,590) 3,552
Uses of working cppital:
Addition of property, plant and equipment, net 1,128,706 - 1,128,706
Increase in restricted assets 60,841 - 60,841
Long-term note payable reclassified to current liabilities 39,756 - 39,756
Long-term bonds payable reclassified to current liabilities 165,662 - 165,662
Total uses of working capital 1,394,965 - 1,394,965
Net decrease in working capital $ (515,823) $(875,590) $(1,391,413)
Elements of net increase (decrease) in working capital:
Cash and short-term investments $ 266,253 $(530,736) $ (264,483)
Accounts and interest receivable, net (65,914) (31,978) (97,892)
Accounts payable (248,211) (76,557) (324,768)
Accrued salaries and wages (15,261) .(5,931) (21,192)
Customer deposits (42,231) - (42,231)
Due to/from other funds (407,608) 78,472 (329,136)
Liability for self-insurance claims - (308,860) (308,860)
Current installment of long-term notes payable (2,851) - (2,851)
Net decrease in working capital $ (515,823) $(875,590) $(1,391,413)
See accompanying notes to combined financial statements.
0040J-Page 13
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1983
Note (1) Summary of .Signif.icant 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.
0040J-Page 14
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
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 in a trustee capacity for private individuals or organizations.
Expendable Trust Funds are accounted for in essentially the same manner as governmental funds.
B. General Fixed Assets and Long-term Obligations Account 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 Obligations 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.
M M M M M M r M M M M M M M M M � � �
�r rr r �r �r r rr �r ■r r r r� �r r� r■ rr r� r■ �r
0040J-Page 15
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
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 Obligations 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 or, in the case of the water distribution assets, at
the City Council acceptance date. 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 capital 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 Obligations Account Group.
.0040J-Page 16
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
C. Total Columns on Combined Financial Statements
Total columns on the Combined Financial Statements are captioned memorandum 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.
D. Reporting Entity
The accompanying financial statements of the City include the financial activities of 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, the Redevelopment Agency and the West Orange County Water Board. 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 as required by the statutory law or by the appropriate bond indenture agreements. The
financial activities with the Public Facilities Corporation, the Parking Authority and the Redevelopment Agency have been fully described in
Notes 4, 5 and 1.E, respectively. The operations and financial activities with the West Orange County Water Board are immaterial to the City.
Accordingly, the financial statements for these related entities are not included herein.
E. Transactions with the Redevelopment Agency of the City of Huntington Beach
The City and the Redevelopment Agency of the City of Huntington Beach (the Agency) are separate but related entities, and the members of the
City Council serve as the governing body of the Agency. The amounts due from the Agency consist of the following:
Amount
Notes receivable in consideration for
land conveyed to the Agency for development $3,155,536
Advances to the Agency for the purpose of providing
operating capital and to assist in the acquisition
of land for development in the Main-Pier Project 235,066
3 390 602
The notes bear interest at ten percent per annum, which amount is recognized when received under the modified accrual basis of accounting.
Additionally, these amounts have been offset by a corresponding deferred income account and payments will be recorded as revenues when
received. The notes will be paid as follows:
rr r it it r r r r r r r r r r r r r r r
0040J-Page 17
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Amount
From tax increment revenues as they become available
and after repayment of all other obligations of
the Main-Pier Project $ 405,536
From proceeds of the sale of the land in the
Talbert-Beach Project 2,750 000
3 155 536
The City and the Agency also provide certain administrative and other services for each other on a cost reinbursement basis.
F. Basis of Accounting
Governmental fund types and the expendable trust funds use a modified accrual basis of accounting. Revenues are recognized when measurable and
available. Revenues which are accrued include federal and state grants and subventions, property taxes, interest and certain charges for current
services. Revenues which are not considered susceptible to accrual include certain licenses, permits, fines, forfeitures and penalties.
Expenditures, other than interest on long-term debt and employee compensated absences (vacation and sick leave), are recorded when the liability
is paid. Proprietary fund types are accounted for on the accrual basis.
G. 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 Revenue Funds. Encumbrances
outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities.
H. Cash and Investments
Short-term interest-bearing securities generally consist of federal government-backed securities, bankers acceptances, and time certificates of
deposit and are stated at cost, which approximates market value. Investment income is allocated to the various funds based on the month-end
investment balances.
I. Inventories
Inventories, which consist of materials and supplies, are stated at weighted-average cost.
0040J-Page 18
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
J. 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. In fiscal 1983, the City recorded transfers of federal revenue sharing and state gas tax monies from the appropriate
special revenue funds to the General Fund as operating transfers. Interfund transactions are not eliminated, nor are interfund payables and
receivables outstanding at year-end.
K. Vacation and Sick Leave
For the govermental fund types, 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, 1983 has been partially designated for $2,550,000 which is the total unrecorded liability for vacation and sick leave
accumulated by City employees. In fiscal 1983 the City recorded this amount in the General Long-Term Obligations Account Group under the
assumption that no amounts will be paid with expendable available financial resources. In the proprietary funds, the liability of $99,341 has
been recorded.
L. 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, 1983 was approximately $4,296,000. As a result of revisions of PERS
evaluation procedures, the City's gross contributions for fiscal 1983 were reduced by credits of $1,075,000 based on the City's PERS reserve
account balances. 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.
M. Self-Insurance
The City is self-insured for various types of risks, principally workers' 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. The City is self-insured for the first $250,000 of each workers' compensation claim and for the
first $100,000 of each general liability claim. General liability losses in excess of $100,000 up to $20,000,000 are covered by insurance.
N. Operational Reserve Fund
The City has established an Operational Reserve Fund (Special Revenue) under Article XIIIB, 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.
M =
0040J-Page 19
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
0. 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.
P. Interest
The City incurs interest expense on general obligations bonds, water revenue bonds, notes payable and capital leases. During the year ended June
30, 1983, no interest was capitalized; the City's interest expense was as follows:
Interest expense
Governmental fund types:
General Fund (capital lease obligations) $ 905,370
Debt Service Fund (general obligation bonds) 248,450
1 153 820
Proprietary fund types:
Water Enterprise Funds (water revenue bonds and note payable) $ 91,916
Meadowlark Golf Course Fund (note payable) 130,690
222,606
Note (2) 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 used in the "Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All
Governmental Fund Types." With the exception of encumbrances, the same basis is used in the "Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Budgetary Basis Actual" for the purposes of allowing comparison of expenditures to budget data. As a
result, expenditures are greater in the latter statement by the amount of encumbrances outstanding at June 30, 1983. These encumbrances are
then added back to the fund balance so that the ending fund balance is equal in both statements.
0040J-Page 20
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Note (3) Property, Plant and Equipment
Property, plant and equipment net of allowance for depreciation consists of the following at June 30, 1983:
General Total
Property Enterprise (Memorandum
and Equipment funds only)
Land $22,437,659 $ 3,462,725 $25,900,384
Buildings 9,703,628 1,232,039 10,935,667
Machinery and equipment 8,555,441 1,360,062 9,915,503
Improvements other than buildings 4,342,736 41,074,422 45,417,158
45,039,464 47,129,248 92,168,712
Accumulated depreciation - 15,333,268 15 333,268
45.039.464 31,795,980 76 835 444
A summary of changes in the General Property and Equipment Account for the year ended June 30, 1983 follows:
Balance Balance
June 30, 1982 Additions Disposals June 30, 1983
Land $16,293,193 $6,528,586 $ 384,120 $22,437,659
Buildings 9,386,744 316,884 - 9,703,628
Machinery and equipment 8,673,287 1,530,957 1,648,803 8,555,441
Improvements other than buildings 4,813,825 500,274 971,363 4,342,736
39,167,049 $8,876,701 $3,004,286 $45,039,464
0040J-Page-. 21
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
A summary of changes in the Enterprise Fund Account Group net of allowance for depreciation for the year ended June 30, 1983 follows:
Balance Allowance For Balance
June 30, 1982 Additions Depreciation June 30, 1983
a
Land $ 3,462,725 $ - $ - $ 3,462,725
Buildings 1,069,716 - 33,846 1,035,870
Machinery and equipment 706,192 149,050 79,618 775,624
Improvements other than buildings 26,627,079 979,656 1,084,974 26,521 761
31,865,712 TT128,706 $1,198,438 $31,795,980
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. 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.
0040J-Page 22
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
B. Central Library
This involves a noncancellable lease and sublease agreement with the Corporation for the Central Library. The City has leased the site to
the Corporation for $300,000 advance rental. The term -of the lease is from September 1, 1972 to one week after 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.
In addition to the above, the City has leases for certain equipment. 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, 1983:
General
Year ended Long-Term Obligations
June 30, Account Group
1984 $ 1,394,000
1985 1,394,000
1986 1,341,000
1987 1,323,000
1988 1,293,000
1989 and after 12,5784000
Total minimum lease payments 19,323,000
Less amount representing interest (7,457,893)
Present value of minimum lease payments $11,865,107
Changes in the General Long-Term Obligations Account Group lease obligations during the year ended June 30, 1983 are summarized below:
Balance Balance
June 30, 1982 Additions Payments June 30, 1983
$12,129,768 J218.156 482 817 $11,865,107
0040J-Page 23
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
The following is a schedule of property leased under capital leases by major classes at June 30, 1983:
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 ended Amount
June 30,
1984 $ 170,050
1985 170,050
1986 170,050
1987 170,050
1988 170,050
1989 and after 680,200
$1,530,450
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.
0040J-Page 24
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Note (6) Bonded debt
The following is a summary of bond transactions for the year ended June 30, 1983:
General Water
obligation revenue
bonds bonds
Bonds payable at June 30, 1982 $4,150,000 $1,566,000
Bonds retired during the year 220,000 150,000
Bonds payable at June 30, 1983 $3,930,000 $1,416,000
General obligation bonds (interest 6%) and water revenue bonds (interest ranging from 3.4% to 3.5%) are payable in annual principal
installments with semi-annual interest payments. Water revenue bonds are secured by revenue earned by the Water Enterprise Fund.
The following is a schedule of required principal payments during the next five fiscal years and thereafter:
General Water Total
Year ended Obligation Revenue (Memorandum
June 30, Bonds Bonds Only)
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
1988 295,000 180,000 475,000
1989 and after 2,615,000 601,000 3,216,000
$3,930,000 $1,416,000 $5,346,000
Enterprise fund restricted assets represent unexpended proceeds and interest earnings thereon, of water revenue bonds issued in 1963. Under the
bond resolution and indenture, the remaining proceeds are restricted for use for future construction of improvements in the City's water system,
or for retiring bonds.
0040J-Page 25
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Note (7) 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
seven percent note. The note payable is collateralized by future revenues and does not represent a general obligation of the City. At June 30,
1983, the balance of the note was $1,847,687. The following is a schedule of required principal and interest payments during the next five
fiscal years and thereafter:
Year ended
June 30, Amount
1984 $ 150,000
1985 150,000
1986 150,000
1987 150,000
1988 150,000
1989 and after 3,465,703
4,215,703
Less amount representing interest (2 368 016)
1.847.687
In connection with the above purchase, the City has leased the golf course operation to an outside party, 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.
0040J-Page 26
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Note (8) 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. The City has recorded its portion of the reservoir as a fixed asset in
the Water Utility Fund.
The following is a schedule of required principal and interest payments for the next five fiscal years and thereafter:
Year ended Amount
June 30,
1984 $ 58,915
1985 57,318
1986 57,714
1987 58,018
1988 60,228
1989 and after 236,760
Total payments 528,953
Less amount representing interest (78,814)
Principal payments due under
under purchase agreement $450,139
Note (9) 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 actions are not expected to have a significant impact on the financial statements or
operations of the City.
CITY OF HUNTINGTON BEACH 0040J-Page 27
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Note (10) Residential Mortgage Revenue Bond Program
The City is- sponsoring a Program under which $20,000,000 of Residential Mortgage Revenue Bonds were issued in March 1983. This represented the
first issue under the program established in February 1983 to provide funds for the purchases of home mortgages to be secured by newly
constructed and existing single family homes located in the City. The bonds are payable solely from, and are secured by, a pledge of payments
made on the Home Mortgages and all funds (as defined) held by the trustee, Security Pacific National Bank, under the trust Indenture agreement.
The bonds are not an indebtedness of the City and there exists no moral or legal obligation on the part of the City to make payments on the
bonds from any source other than the revenue and assets pledged therefor. Accordingly, this program has been excluded from the accompanying
combined financial statements.
Note (11) Loans-to-Lenders Revenue Bond Program
The City is sponsoring a Program under which $16,000,000 of Loans-to-Lenders Revenue Bonds (the "bonds") were issued in March 1983. The bonds
were issued to provide funds to purchase a certificate of deposit with Home Federal Savings and Loan Association ("the lender"). In
consideration for the deposit, the lender will make a mortage loan to the developers to finance the cost of the Huntington Breakers project, a
multi-family residential rental project to be located in Huntington Beach. The bonds are secured by the certificate of deposit issued by the
lender pursuant to a deposit agreement. The bonds are not an indebtedness of the City and are payable solely from the certificate of deposit
and certain funds (as defined) in the trust Indenture. Accordingly, the program has been excluded from the accompanying combined financial
statements.
0040J-Page 28
CITY OF HUNTINGTON BEACH
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
Note (12) Segment information for enterprise funds
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, 1983 for those funds are as follows:
Water Meadowlark
Utility Golf Course Total
Operating revenues $ 5,732,984 $ 193,166 $ 5,926,150
Depreciation expense $ 1,157,496 $ 40,942 $ 1,198,438
Operating income (loss) $(1,254,181) 152,224 $(1,101,957)
Operating transfers to other funds $ (407,409) $ - $ (407,409)
Net income (loss) $ (964,664) 21,534 $ (943,130)
Capital contributions received $ 623,834 $ - $ 623,834
Acquisition of fixed assets $ 1,128,706 1,128,706
Net working capital 3,762,088 $ 117,234 $ 3,879,322
Total assets $34,354,432 $3,537,185 $37,891,617
Bonds and notes payable (long-term) $ 1,682,139 $1,827,025 $ 3,509,164
Total equity $30,932,681 $1,643,173 $32,575,854
� ■■� � r r� ri � r r r■ rr rr rr r� r� r■ r � �
Combining Financial Statements.
0040J-Page 29
CITY OF HUNTINGTON BEACH SCHEDULE I
General Fund
Statement of Appropriations, Expenditures and Encumbrances
Budget and Actual
Year Ended June 30, 1983
Appropriations Expenditures Total Percentage
Outstanding Expenditures Variance - of Appro-
Original Budget Revised Personal Operating Capital Total Encum- and Favorable priation
Budget Changes Budget Services Expenses Outlay Expenditures brances Encumbrances (Unfavorable) Expended
Expenditures:
Administrative:
City Council $ 89,682 $ 13,560 $ 103,242 $ 50,202 $ 47,602 $ - $ 97,804 $ 724 $ 98,528 $ 4,714 94.7%
Non-Departmental 4,210,200 51,739 4,261,939 - 4,058,277 - 4,058,277 19,913 4,078,190 183,749 95.2
Administration 447,230 9,145 456,375 370,751 64,564 849 436,164 6,385 442,549 13,826 95.6
4,747,112 74,444 4,821,556 420,953 4,170,443 849 4,592,245 27,022 4,619,267 2029289 95.2
Support:
Administrative
Services 2,359,995 72,529 2,432,524 1,606,859 533,518 37,243 2,177,620 90,565 2,268,185 164,339 89.5
Attorney 634,413 191 634,604 567,909 61,091 - 629,000 3,313 632,313 2,291 99.1
Clerk 175,573 5 175,578 145,922 16,940 2,214 165,076 14,056 179,132 (3,554) 94.0
Treasurer 503,706 (238,807) 264,899 211,431 52,772 1,943 266,146 1,925 268,071 (3,172) 100.5
3,673,687 (166,082) 3,507,605 2,532,121 664,321 41,400 3,237,842 109,859 3,347,701 159,904 92.3
Community Services:
Community Services 5,600,772 124,549 5,725,321 3,662,887 19365,286 194,942 5,223,115 159,113 5,382,228 343,093 91.2
Development Services 1,869,781 (2,412) 1,867,369 1,595,316 36,377 11,424 1,643,117 24,292 1,667,409 199,960 88.0
Public Works 11,861,298 1,127,855 12,989,153 6,452,013 4,537,125 677,836 11,666,974 652,530 12,319,504 669,649 89.8
19,331,851 1,249,992 20,581,843 11,710,216 5,938,788 884,202 18,533,206 835,935 19,369,141 1,212,702 90.0
Public Safety:
Police 15,063,439 94,850 15,158,289 12,728,435 1,375,044 287,131 14,390,610 377,756 14,768,366 389,923 94.9
Fire 8,217,901 196,210 8,414,111 7,274,359 484,063 234, 714 7,993,136 193,550 8,186,686 227,425 95.0
23,281,340 291,060 23, 572,400 20,002,794 1,859,107 521,845 22,383,746 571,306 22,955,052 617,348 94.9
Total Expenditures $51,033,990 $1,449,414 $52,483,404 $34,666,084 $12,632,659 $1,448,296 $48,747,039 $1,544,122 $50,291,161 $2,192,243 92.9%
Huntington Beach
Public Facilities Corporation
Financial Statements
June 30, 1983
( With, Report Of Certified Public Accountants )
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
ANNUAL FINANCIAL REPORT
June 30, 1983
TABLE OF CONTENTS
INTRODUCTORY SECTION
Board of Directors
Administrative Officials
FINANCIAL SECTION
Report of Certified Public Accountants
Combined Financial Statements: Statement Page
Combined Balance Sheet I 1
Combined Statement of Revenues, Expenses and Changes in Retained Earnings II 2
Combined Statement of Changes in Financial Position III 3
Notes to Combined Financial Statements 4
STATISTICAL EXHIBITS (Unaudited) Exhibit
Statement of Bonded Debt I 8
Statement of Future Debt Requirements by Year on Bonded Debt II 9
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
BOARD OF DIRECTORS
William Wamhoff, Jr. President
D. L. Nowlin Vice President
Mary Ellen Houseal Secretary/Treasurer
Jerry Sapp Director
Anton Teixeira Director
ADMINISTRATIVE OFFICIALS
Charles W. Thompson City Administrator .
Robert J. Franz Chief of Administrative Services
Daniel Villella Finance Director
r r r� �r �r r■ r� ■r r� r■ r� r� �r r r� r� rr � �■
L�,�W�WVU11 U�I�JU�1�
ARTHUR YOUNG & COMPANY
SUITE 900
3200 PARK CENTER DRIVE
P. O. BOX 2410
COSTA MESA, CALIFORNIA 92626
(714) 850-9500
The Board of Directors
Huntington Beach Public Facilities Corporation
Huntington Beach, California
We have examined the combined balance sheet of the Huntington Beach Public Facilities Corporation at June 30, 1983
and the related combined statements of revenues, expenses and changes in 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, 1983 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.
The accompanying statistical exhibits are presented for the purpose of additional analysis and are not a required
part of the combined financial statements of the Huntington Beach Public Facilities Corporation. These statistical
exhibits were not audited by us and, accordingly, we do not express an opinion on them.
September 16, 1983
Financial Section
0040J-Page 30
CITY OF HUNTINGTON BEACH SCHEDULE II
Special Revenue Funds
Combining Balance Sheet
June 30, 1983
HUD
Park Rehab
Special Planned Federal Public Acquisition Special Loan and
Gas Library Local Revenue Communi- Other and Operational Capital Interest
Tax Sewer Service Drainage Sharing cations Grants Development Reserve Outlay Subsidy Total
ASSETS
Cash including short-term
interest-bearing
securities $2,958,916 $2,774,340 $ - $1,885,653 $ - $48,758 $530,888 $ 693,268 $71,811 $657,074 $272,007 $ 9,892,715
Interest receivable 32,745 19,717 - 13,405 - 288 - 13,262 473 4,688 - 84,578
Due from other governments 222,754 487,723 - - - - 83,956 161,502 - 65 - 956,000
Due from Redevelopment Agency - - - - - - - 2,750,000 - - - 2,750,000
Notes receivable, net of
allowance - - - - - - - - - - 194,664 194,664
3,214,415 $3.281.78099,058 49 046 614 844 3,618,032 72 284 661 827 466 671 $13,877,957
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 279,325 $ 35,490 $ - $ 1,681 $ - $ - $ 85,491 $ 362,853 $ 7,705 $ - $ - $ 772,545
Accrued salaries and wages - - - - - - 6,785 609 - - - 7,394
Refundable deposits 1,035 - - - - - - 682 - - - 1,717
Deferred rental and
other income - - - - - - - 2,750,000 - - - 2,750,000
Total liabilities 280,360 35,490 - 1,681 - - 92,276 3,114,144 7,7 55 - - 3,531,656
Fund balances:
Reserved:
Encumbrances 794,683 800 - 76,013 - - 598,137 272,959 61,661 105,796 - 1,910,049
Amounts due beyond
one year - 437,500 - - - - - 81,257 - - - 518,757
Reimbursement agreements - - - 622,825 - - - - - - - 622,825
Unreserved:
Designated for:
Approved projects by
City Council - - - 31,226 - - 92,249 47,000 - - - 170,475
Fund balances available 2,139,372 2,807,990 - 1,167,313 - 49,046 (167,818) 102,672 2,918 556,031 466,671 7,124,195
Total fund balances 2,934,055 3,246,290 - 1,897,377 - 49,046 522,568 503,888 64,579 661,827 466,671 10,346,301
3,214,415 3,281,780 1.899.058 49 046 614 844 3,618,032 72 284 661 827 466 671 13,877,957
0040J-Page 31
CITY OF HUNTINGTON BEACH SCHEDULE III
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Year Ended June 30, 1983
Special Planned Federal Public
Gas Library Local Revenue Communi-
Tax Sewer Service Drainage Sharing cations
Revenues:
Licenses and permits $ - $ 163,752 $ 85,140 $ 146,029 $ - $ -
Use of money and property 385,569 329,554 - 254,962 5,407 9,596
Aid from other governmental units 2,330,118 26,195 - - 1,765,373 -
Charges for current services - - - - - 102,508
Total revenues 2,715,687 519,501 85,140 400,991 1,770,780 112,104
Expenditures:
Support services - - - - - -
Community services - - - - - 63,058
Public safety - - - - 6,143 -
Highways and street 1,279,388 - - - - -
Drains and sewers_ - 113,942 - 569,822 - -
Park development - - - - - -
Loan subsidies and loan losses - - - - - -
Grants - - - - - -
Total expenditures 1,279,388 113,942 - 569,822 6,143 63,058
Excess of revenues over
(under) expenditures 1,436,299 405,559 85,140 (168,831) 1,764,637 49,046
Operating transfers
from (to) other funds (1,138,338) - (85,140) - (1,770,780) -
Excess of revenues and
net operating transfers
over (under) expenditures 297,961 405,559 - (168,831) (6,143) 49,046
Fund balances, beginning of year 2,636,094 2,840,731 - 2,066,208 6,143 -
Fund balances, end of year $2,934,055 $3,246,290 $1,897,377 $ - 49 046
0040J-Page 32
CITY OF HUNTINGTON BEACH SCHEDULE III
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
. Year Ended June 30, 1983
Hud
Park Rehab
Acquisition Special Loan and
Other and Operational Capital Interest
Grants Development Reserve Outlay Subsidy Total
Revenues:
Licenses and permits $ - $ 79,148 $ - $ - $ - $ 474,069
Use of money and property - 116,618 82,665 107,799 21,217 1,313,387
Aid from other governmental units 2,373,095 - - - - 6,494,781
Charges for current services - 898,655 - - - 1,001,163
Total revenues 2,373,095 1,094,421 82,665 107,799 21,217 9,283,400
Expenditures:
Support services - - - 31,271 - 31,271
Community services - - - 277,012 - 340,070
Public safety - - 1,519,047 339,252 - 1,864,442
Highways and street - - - - - 1,279,388
Drains and sewers - - - - - 683,764
Park development - 2,224,325 - - - 2,224,325
Loan subsidies and loan losses - - - - 79,601 79,601
Grants 1,909,951 - - - - 1,909,951
Total expenditures 1,909,951 2,224,325 1,519,047 647,535 79,601 8,412,812
Excess of revenues over
(under) expenditures 463,144 (1,129,904) (1,436,382) (539,736) (58,384) 870,588
Operating transfers
from (to) other funds (268,572) - (110,254) (282,800) 268,572 (3,387,312)
Excess of revenues and
net operating transfers
over (under) expenditures 194 572 (1,129 904) (1,546,636) (822 536) 210 188 P , . , , (2,516,724)
Fund balances, beginning of year 327,996 1,633,792 1,611,215 1,484,363 256,483 12,863,025
Fund balances, end of year 522,568 $ 503,888 $ 64,579 $ 661,827 $466,671 $10,346,301
0040J-Page 33
CIiF OF MiNTINGTON BEACH SCHEDULE IV
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Budgetary Basis Actual
Year Ended June 30, 1983
Special Gas Tax Sewer Library Service
Budgetary Variance Budgetary Variance Budgetary Variance
Basis favorable Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
Licenses and permits $ - $ - $ - $ 10,000 $ 163,752 $ 153,752 $ 45,500 $ 85,140 $ 39,640
Use of money and property 265,000 385,569 120,569 320,000 329,554 9,554 - - -
Aid from other
governmental units 4,183,239 2,330,118 (1,853,121) 8,000 26,195 18,195 - - -
Charges for current services - - - - - - - - -
Other - - - 2,000 - (2,000) - - -
Total revenues 4,448,239 2,715,687 (1,732,552) 340,000 519,501 179,501 45,500 85,140 39,640
Expenditures:
Support services - - - - - - - - -
Community services - - - - - - - - -
Public safety - - - - - - - - -
Highways and street 3,307,519 2,074,071 1,233,448 - - - - - -
Drains and sewers - - - 1,338,206 114,742 1,223,464 - - -
Park development - - - - - - - - -
Loan subsidies and loan losses - - - - - - - - -
Grants - - - - - - - - -
Total expenditures 3,307,519 2,074,071 1,233,448 1,338,206 114,742 1,223,464 - - -
Excess of revenues over
(under) expenditures 1,140,720 641,616 (499,104) (998,206) 404,759 1,402,965 45,500 85,140 39,640
Operating transfers
from (to) other funds (1,200,000) (1,138,338) 61,662 - - - (45,500) (85,140) (39,640)
Excess of revenues and -
other net operating transfers
over (under) expenditures (59,280) (496,722) (437,442) (998,206) 404,759 1,402,965 - - -
Fund balance,
beginning of year 2,636,094 2,636,094 - 2,840,731 2,840,731 - - - -
Budgetary basis fund balances,
end of year 2,576,814 2,139,372 (437,442) 1,842,525 3,245,490 1,402,965 - - -
Encumbrances outstanding,
end of year 794,683 794,683 - 800 800 - - - -
GAAP basis fund balance,
end of year $ 3,371,497 $2,934,055 $ (437,442) L1,843,325 $3,246-290 $1,402,965 _ $ -
0040J-Page 34
CITY OF HUNTINGTON BEACH SCHEDULE IV
.Special Revenue Funds
'Combining Statement of Revenues.; Expenditures and
Changes in Fund Balance - Budget and Budgetary Basis Actual
Year Ended June 30, 1983
Planned Local Drainage Federal Revenue Sharing Public Communications
Budgetary Variance Budgetary Variance Budgetary Variance
Basis favorable Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
Licenses and permits $ 220,000 $ 146,029 $ (73,971) $ - $ - $ - $ - $ - $Use of money and property 290,000 254,962 (35,038) - 5,407 5,407 - 9,596 9,596
Aid from other governmental units - - - 1,852,700 1,765,373 (87,327) - - -
Charges for current services _ - - - - - - - 102,508 102,508
Other revenues - - - - - - - -
Total 'revenues 510,000 400,991 (109,009) 1.2,852,700 1,770,780 (81,920) - 112,104 112,104
Expenditures:
Support services - - - - - - - - -
Community services - - - - - - - 63,058 (63.,058)
Public safety - - - 6,143 6,143 - - - -
Highways and street - - - - - - - -
Drains and sewers 1,503,681 645,835 857,846 - - - - - -
Park development - - - - - - - - -
Loan subsidies and loan losses - - - - - - - - -
Grants - - - - - - - -
Total expenditures 1,503,681 645,835 857,846 6,143 6,143 - - 63,058 (63,058)
Excess of revenues over
(under) expenditures (993,681) (244,844) 748,837 1,846,557 1,764,637 (81,920) - 49.,046 49,046
Operating transfers
from (to) other funds - - - (1,852,700) (1,770,780) 81,920 - - -
Excess of revenues -and
other net operating transfers
over (under) expenditures (993,681) (.244,844) 748,837 (6,143) (6,143) - - 49,046 49,046
Fund balances
beginning of year 2.,066,208 2,066,208 - 6,143 6,143 - - - -
Budgetary basis fund balances,
end of year 1,072,527 1,821,364 748,837 - - - - 49,046 49,046
Encumbrances outstanding,
end of year 76,013 76,013 - - - - - - -
GAAP basis fund balances,
end of year $1,148,540 $1,897,377 $ 748,837 $ - $ - = 49 046 49,046
0040J-Page 35
CITY OF HUNTINGTON BEACH SCHEDULE IV
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Budgetary Basis Actual
Year Ended June 30, 1983
Other Grants Park Acquisition & Development Operational Reserve
Budgetary Variance Budgetary Variance Budgetary Variance
Basis favorable Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
Licenses and permits $ - $ - $ - $ 75,000 $ 79,148 $ 4,148 $ - $ - $Use of money and property - - - 135,050 116,618 (18,432) 185,000 82,665 (102,335)
Aid from other governmental units 4,791,838 2,373,095 (2,418,743) - - - - - -
Charges for current services - - - 884,488 898,655 14,167 - - -
Other - - - - - - - - -
Total revenues 4,791,838 2,373,095 (2,418,743) 1,094,538 1,094,421 (117) 185,000 82,665 (102,335)
Expenditures:
Support services - - - - - - - - -
Community services - - - - - - - - -
Public safety - - - - - - 1,589,114 1,580,708 8,406
Highways and street - - - - - - - - -
Drains and sewers - - - - - - - - -
Park development - - - 2,500,169 2,497,284 2,885 - - -
Loan subsidies and loan losses - - - - - - - - -
Grants 419853,423 2,508,088 2,345,335 - - - - - -
Total expenditures 4)-853,423 2,508,088 2,345,335 2,500,169 2,497,284 2,885 1,589,114 1,580,708 8,406
Excess of revenues over
(under) expenditures (61,585) (134,993) (73,408) (1,405,631) (1,402,863) 2,768 (1,404,114) (1,498,043) (93,929)
Operating transfers
from (to) other funds (268,572) (268,572) - - - - (110,254) (110,254) -
Excess of revenues and
other net operating transfers
over (under) expenditures (330,157) (403,565) (73,408) (1,405,631) (1,402,863) 2,768 (1,514,368) (1,608,297) (93,929)
Fund balances
beginning of year 327,996 327,996 - 1,633,792 1,633,792 - 1,611,215 1,611,215 -
Budgetary basis fund balances,
end of year (2,161) (75,569) (73,408) 228,161 230,929 2,768 96,847 2,918 (93,929)
Encumbrances outstanding,
end of year 598,137 598,137 - 272,959 272,959 - 61,661 61,661 -
GAAP basis fund balances,
end of year $ 595,976 $ 522,568 $ (73,408) $ 501,120 $ 503,888 $ 2,768 $ 158,508 $ 64,579 $ (93,929)
_ r 0040J-Page 36
CITY OF HUNTINGTON BEACH SCHEDULE IV
Special Revenue Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Budgetary Basis Actual
Year Ended June 30, 1983
HUD Rehabilitation Loan
Special Capital Outlay and Interest Subsidy Total
Budgetary Variance Budgetary Variance Budgetary Variance
Basis favorable Basis favorable Basis favorable
Budget Actual (unfavorable) Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
Licenses and permits $ - $ - $ - $ - $ - $ - $ 350,500 $ 474,069 $ 123,569
Use of .money and property - 107,799 107,799 11,341 21,217 9„876 1,206,391 1,313,387 106,996
Aid from other governmental units - - - - - - 10,835,777 6,494,781 (4,340,996)
Charges for current services - - - - - - 884,488 1,001,163 116,675
Other - - - - - - 2,000 - (2,000)
Total revenues - 107,799 107,799 11,341 21,217 9,876 13,279,156 9,283,400 (3,995,756)
Expenditures:
Administrative 38 - 38 - - - 38 - 38
Support services 100,544 100,399 145 - - - 100,544 100,399 145
Community services 297,236 297,340 (104) - - - 297,236 360,398 (63,162)
Public safety 360,828 355,592 5,236 - - - 1,956,085 1,942,443 13,642
Highways and street - - - - - - 3,307,519 2,074,071 1,233,448
Drains and sewers - - - - - - 2,841,887 760,577 2,081,310
Park development - - - - - - 2,500,169 2,497,284 2,885
Loan subsidies and loan losses - - - 591,000 79,601 511,399 591,000 79,601. 511,399
Grants - - - - - - 4,853,423 2.,508,088 2,345,335
Miscellaneous (2,743) - (2,743) - - - (2,743) - (2,743)
Total expenditures 755,903 753,331 2,572 591,000 79,601 511,399 16,445,158 10,322,861 6,122,297
Excess of revenues over
(under) expenditures (755,903) (645,532) 110,371 (579,659) (58,384) 521,275 (3,166,002) (1,039,461) 2,126,541
Operating transfers
from (to) -other funds - (282,800) (282,800) 56,730 268,572 211,842 (3,4203.296) (3,387,312) 32,984
Excess of revenues and
._ _ _.other .net operating transfers
over (under) expenditures (755,903) (928,332) (172,429) (522,929) 210,188 733,117 (6,586,298) (4,426,773) 2,159,525
Fund balances
beginning of year 1,484,363 1,484,363 - 256,483 256,483 - 12,863,025 12,863,025 -
Budgetary basis fund balances,
end of year 728,460 556,031 (172,429) (266,446) 466,671 733,117 6,276,727 8,436,252 2,159,525
Encumbrances outstanding,
end of year 105,796 105,796 - - - - 1,910,049 1,910,049 -
GAAP basis fund balances,
end of year $ 834,256 $ 661,827 $(172,429) $(266,44b) $466,671. J112,117 $ 8,186,776 $10,346,301 $ 2,159,525
0040J-Page 37
CITY OF HUNTINGTON BEACH SCHEDULE V -
Enterprise Funds
Combining Balance Sheet
June 30, 1983
Water Meadowlark
Utility Golf Course Total
ASSETS
Current assets :
Cash, including short-term interest-bearing
securities $ 4,936,972 $ 182,926 $ 5,119,898
Accounts and interest receivable, net of allowance for
uncollectible accounts 375,584 1,295 376,879
Other assets 32,269 - 32,269
Total current assets 5,344,825 184,221 5,529,046
Property, plant, and equipment, net of allowance for depreciation 282443,016 3,352,964 31,795,980
Restricted assets - cash and investments 566,591 - 566,591
34,354,432 3,537,185 37,891, 617
LIABILITIES AND FUND EQUITIES
Current liabilities:
Accounts payable $ 5772026 $ - $ 577,026
Customer deposits 409,790 - 409,790
Interest payable - 462325 46,325
Accrued salaries and wages 148,675 - 148,675
Due to other funds 408,246 - 4082246
Current installment of long-term notes payable 39,000 20,662 59,662
Total current liabilities 1,582,737 662987 126492724
Liabilities payable from restricted assets-
current installment of bonds and interest payable 1562875 - 156,875
Notes payable, net of current installment 411,139 1,8272025 22238,164
Bonds payable, net of current installment 12271,000 - 1,271,000
Total liabilities 3,421,751 1,894,012 523152763
Fund equities :
Contributed capital:
From Developers 28,6282945 - 28,628,945
From General Fund 92,608 1,2672324 1,359,932
Retained earnings :
Allocated for revenue bond retirement 4092716 - 409,716
Unallocated 12801,412 3752849 2,1772261
Total fund equities 30,9322681 1,6432173 32,5752854
$34,354,432 $3,537,185 $37,891, 617
0040J-Page 38
CITY OF HUNTINGTON BEACH SCHEDULE VI
Enterprise Funds
''Combining Statement of Revenues,- Expenses and
Changes in Equity
Year Ended June 30, 1983
Water Meadowlark
Utility Golf Course Total
Operating revenues:
Charges for current service $ 5,587,451 $ - $ 5,587,451
Golf course rentals - 193,166 193,166
Other revenues 145,533 - 145,533
Total operating revenues 5,732,984 193,166 5,926,150
Operating expenses:
Purchased water 1,014,187 - 1,014,187
Pumping expense 1,546,710 - 1,546, 710
Water .treatment 52,269 - 52,269
Transmission and distribution 1,421,051 - 1,421,051
Administrative and general 947,494 - 947,494
Contributions to General Fund in
lieu of taxes 847,958 - 847,958
Depreciation 1,157,496 40,942 1,198,438
Total operating expenses 6,987,165 40,942 7,028,107
Operating income (loss) (1,254,181) 152,224 (1,101,957)
Non-operating revenues (expenses) :
Interest income 732,079 - 732,079
Other income 56,763 - 56,763
Interest expense (91,916) (130,690) (222,606)
Net non-operating revenues 696,926 (130,690) 566,236
-Income-before operating transfers (557,255) .21,534 (535,721)
Operating transfer to other funds (407,409) - (407,409)
Net income (loss) . (964,664) 21,534 (943,130)
Retained earnings, beginning of year 3,175,792 354,315 3,530 107
Retained earnings, end of year 2, 111.128 375.849 2 586 977
Contributed capital, beginning of year $28,097, 719 $1,267,324 $29,365,043
Capital contributions received from developers 623,834 - 623,834
Contributed capital, end of year 28,721,553 $1.267.324 $29,988,877
0040J-Page 39
CITY OF HUNTINGTON BEACH SCHEDULE VII
Enterprise Funds
Combining Statement of Changes in Financial Position
Year Ended June 30, 1983
Water Meadowlark
Utility Golf Course Total
Sources of working capital:
Operations:
Net income (loss) $ (964,664) $21,534 $ (943,130)
Depreciation not requiring working capital 1,157,496 40,942 1,198,438
Working capital provided from operations 192,832 62,476 255,308
Increase in contributed capital 623,834 - 623,834
Total sources of working capital 816,666 62,476 879,142
Uses of working capital:
Addition of property, plant and equipment 1,128,706 - 1,128,706
Increase in .restricted assets 60,841 - 60,841
Long-term note payable reclassified
to current liabilities 39,756 - 39,756
Long-term bonds payable paid or reclassified
to current liabilities 145,000 20,662 165,662
Total uses of working capital 1,374,303 20,662 1,394,965
Net increase (decrease) in working capital $ (557,637) jLlJ14 $ (515,823)
Elements of net increase (decrease) in working capital:
Cash and short-term investments $ 222,713 $43,540 $ 266,253
Accounts and interest receivable (65,539) (375) (65,914)
Accounts payable (248,211) - (248,211)
Accrued salaries and wages (15,261) - (15,261)
Customer deposits (42,231) - (42,231)
Due to/from other funds, net (407,608) - (407,608)
Current installment of long-term notes payable (1,500) (1,351) (2,851)
Net increase (decrease) in working capital $ (557,637) 41 814 (515,823)
0040J-Page 40.
CITY OF HUNTINGTON BEACH SCHEDULE VIII
Expendable Trust Funds
Combining Balance Sheet
June 30, 1983
Employee
Special Deferred Improvement
Deposit Compensation Act Total
ASSETS
Cash including short-term interest-bearing
securities $104,244 $2,850,220 $ 868 $2,955,332
Notes receivable, net of unearned
discount - 528,806 - 528,.806
1104.244 $3,379,026 868 $3,484,138
. LIABILITIES AND FUND BALANCE
Liabilities:
Refundable deposits $104,244 $ - $ - $ 104,244
Bond principal and interest payable - - 868 868
Total liabilities 104,244 - 868 1052112
Fund balance:
Available - 3,379,026 - 3,379,026
104 244 $3,379,026 868 $3,484,138
0040J-Page 41-
CITY OF HUNTINGTON BEACH SCHEDULE IX
Expendable Trust Fund
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Year Ended June 30, 1983
Employee Deferred
Compensation
Revenues:
Employee contributions to
deferred compensation plan $ 482,850
Interest 468,725
951,575
Expenditures:
Paid to participants in employee
deferred compensation plan 43,606
Excess of revenues over (under) expenditures 907,969
Fund balance, beginning of year 2,471,057
Fund balance, end of year $3,379.026
Statistical Exhibits (Unaudited)
0040J-Pa-ge 42-
EXHIBIT I
CITY OF HUNTINGTON BEACH
STATEMENT OF GENERAL FUND REVENUES - OTHER THAN PROPERTY TAXES
Last Ten Fiscal Years
(Unaudited)
Use of Aid From Charges
Fiscal Other Licenses and Fines and Money and Other for Current Other
Year Taxes Permits Forfeitures Property Governmental Units Services Revenue
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 12-5,698 767,233 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 2,56.7,992 942,760 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 3,223,113 2,671,003 1,153,439 529,704
1983 20,661,102 2,673,912 .1,748,817 3,237,373 1,459,278 1,916,286 1,179,902
0040J-Page 43'
EXHIBIT II
CITY OF HUNTINGTON BEACH
STATEMENT OF GENERAL FUND EXPENDITURES
Last Ten Fiscal Years
(Unaudited)
Fiscal Community Support Total
Year Administrative Services Public Safety Services General Fund
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 3,654,024 44,093,600
1983 4,592,245 18,533,206 22,383,746 3,237,842 48,747,039
0040J-Page 44 -
EXHIBIT III
CITY OF HUNTINGTON BEACH
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
1974 143,636 $ 442,271,658 $ 66,340,749 $5,765,000 $ 60,575,749 1.30 $40.14
1975 146,400 529,973,310 79,495,997 5,590,000 73,905,997 1.05 38.18
1976 151,500 580s623$450 87,093,518 5,410,000 81,683,518 .93 35.71
1977 157,800 710,079,235 106,5ll,885 5,220,000 101,291,885 .74 33.08
1978 161,200 854,321,745 128,148,262 5,020,000 123,128,262 .59 31.14
1979 167$ 00 831,783,620 124,767,543 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$ 60,000 156,785,705 .41 25.23
* 1982 174,847 5,219,684,140 195,738,155 4,150,000 191,588,155 .32 23.74
1983 178,706 5,672,213,998 212,708,025 3,930,000 208,778,025 .28 21.99
* The percentage used to determine Assessed Valuation was changed in FY-1982 to 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.
0040J-Page 45
EXHIBIT IV
CITY OF HUNTINGTON BEACH
STATEMENT OF TAX DELINQUENCIES AND IMPOUNDS
Last Ten Fiscal Years
(Unaudited)
SECURED TAXES UNSECURED TAXES
Fiscal Total Total Delinquency Total Total Delinquency
Year Levy _ Collections Amount Percent Levy Collections Amount Percent Impounds
1974 $;6,703,620 $ 6,499,009 $ 66,654 .99 $461,181 $456,296 $ 4,885 1.06 $137,957
1975 .8,099,022 7,844,596 74,987 .93 486,545 484,124 11,169 2.30 179,439
1976 8,852,049 8,587,784 82,622 .93 545,344 516,539 28,798 4.36 186,648
1977 9,982,983 9,844,450 116,794 1.17 549,994 538,370 6,791 1.23 328,451
1978 12,563,144 12,336,834 186,310 1.49 742,053 711,519 30,534 4.11 204,883
1979 5,635,879 5,525,120 110,759 1.97 561,420 537,307 24,113 4.30 195,202
1980 8,842,899 8,602,751 240,148 2.72 861,976 839,468 22,508 2.61 2,962
1981 10,224,680 9,8729496 352,184 3.44 827,168 789,078 38,090 4.60 28,585
1982 10,300,308 9,893,563 406,745 3.98 808,024 737,425 46,596 5.77 6,972
1983 11,405,210 11,116,699 288,511 2.53 960,008 908,666 51,342 5.35 13,007
0040J-Page 46 _
EXHIBIT V
CITY OF HUNTINGTON BEACH
SCHEDULE OF BONDED DEBT
June 30, 1983
(Unaudited)
Bonds Bonds Bonds
Date of Years of Rate of Amount of Outstanding Matured During Outstanding
Issue Bonds Maturity Interest Original Issue June 30, 1982 Year June 30, 1983
General Obligation Bonded
1970 Park Bond 1970 1971-1972 5.00% $ 225,000 $ - $ - $ -
1973-1974 5.25 255,000 - - -
1975-1977 5.50 440,000 - - -
1978-1983 5.75 1,150,000 220,000 220,000 -
1984-1995 6.00 3,930,000 3,930,000 - 3,930,000
6,000,000 4,150,000 2202000 3,930,000
Water Revenue Bonds
1963 Water Revenue Bond 1963 1965-1974 4.75% 700,000 - - -
1975-1978 3.25 460,000 - - -
1979-1981 3.30 400,000 - - -
1982-1983 3.40 300,000 295,000 150,000 145,000
1984-1993 3.50 1,890,000 1,271,000 - 1,271,000
3,750,000 1,566,000 150,000 1,416,000
$9,750,000 $5,716,000 1370.000 $5,346,000
0040J-Page 47 -
EXHIBIT VI
CITY OF HUNTINGTON BEACH
STATEMENT OF FUTURE GENERAL OBLIGATION BONDED DEBT REQUIREMENTS
BY YEAR BASED ON OUTSTANDING DEBT
June 30, 1983
(Unaudited)
Fiscal Year Principal Interest Total
1984 $ 235,000 $ 235,800 $ 470,800
1985 245,000 221,700 466,700
1986 260,000 207,000 467,000
1987 280,000 191,400 471,400
1988 295,000 174,600 469,600
1989 310,000 156,900 466,900
1990 330,000 138,300 468,300
1991 350,000 118,500 468,500
1992 370,000 97,500 467,500
1993 395,000 75,300 470,300
1994 415,000 51,600 466,600
1995 445,000 26,700 471,700
Total $3,930,000 $1,695,300 $5,625,300
0040J-Page 48 ,
EXHIBIT VII
CITY OF HUNTINGTON BEACH
STATEMENT OF FUTURE WATER REVENUE BOND REQUIREMENTS BY YEAR
BASED ON OUTSTANDING DEBT
June 30, 1983
(Unaudited)
Fiscal Year Principal Interest Total
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 $1-416.000 390 35.0 $1,-806.350
0040J-Page 49
EXHIBIT VIII
CITY OF HUNTINGTON BEACH
MISCELLANEOUS STATISTICS
June 30, 1983
(Unaudited)
Date of incorporation 1909
Form of government Charter City - Council - City Administrator
Area 28 square miles
Population 178,706
Miles of streets 362.4 miles
Number of street lights 12,275
Fire Protection:
Number of stations y 7
Number of firemen and officers 126 ._
Police protection:
Number of stations 1
Number of policemen and officers 189
Municipal water department:
Number of customers 44,603
Average daily consumption 24.9 million gal.
Miles of water mains 430
Sewers:
Sanitary sewers 270 miles
Storm sewers 31 miles
Building permits issued 2,426 per year
Recreation and Culture:
Number of parks 57
Number of people using parks 750,000
Acres of beach 43.3
Number of people using beaches 4.2 million
Number of libraries 4
Number of volumes 300,000
Total library circulation 1,700,000
Number of people using libraries 560,600
Em 10 ees 1,160
0044J-Page 1
STATEMENT I
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
COMBINED BALANCE SHEET
June 30, 1983
Civic
Center Project Library Project Total
ASSETS
Current asset:
Current portion of net investment in direct financing
leases (Note 3) $ 280,789 $ 129,725 $ 410,514
Restricted assets:
Time certificates of deposit 928,765 46,500 975,265
Temporary investments in U.S. government
securities, at cost (market: $3,203,112) 1,940,566 1,221,950 3,162,516
Accrued interest receivable 92,594 51,050 143.,644
Total restricted assets 2,961,925 1,319,500 4,281,425
Long-term portion of net investment in direct financing
leases (Note 3) 7,509,917 3,491,770 11,001,687
$10,752,631 $4,940,995 $15,693,626
LIABILITIES AND RETAINED EARNINGS
Liabilities payable from restricted assets:
Accrued interest $ 213,141 $ 75,050 $ 288,191
Current installment of bonds payable (Note 4) 360,000 170,000 530,000
Total liabilities payable from restricted
assets 573,141 245,050 818,191
Deferred.-rent-al income- 64,445 - 64,445
Bonds payable, net of current installment (Note 4) 8,220,000 3,780,000 121000,000
Total liabilities 8,857,586 4,025,050 12,882,636
Retained earnings 1,895,045 915,945 2,810,990
$10,752,631 $4,940,995 $15,693,626
See accompanying notes to combined financial statements.
0044J-Page 2
STATEMENT II
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year ended June 30, 1983
Civic
Center Project Library Project Total
Operating revenue:
Interest on direct financing leases (Note 3) $ 595,568 $279,278 $ 874,846
Operating expenses, net (4,326) (12,788) (17,114)
Operating income 591,242 266,490 857,732
Non-operating revenue (expense):
Interest income 334,620 140,929 475,549
Interest expense (4725,497) (222,928) (695,425)
Net income 453,365 184,491 637,856
Retained earnings, beginning of year 1,441,680 731,454 2,173,134
Retained earnings, end of year $1,895,045 IL15.945 $2,810,990
See accompanying notes to combined financial statements.
0044J-Page 3
STATEMENT III
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
Year ended June 30, 1983
Civic
Center Project Library Project Total
Sources of working capital:
Operations:
Net income $453,365 $1840491 $ 637,856
Item not requiring working capital:
Amortization of deferred rental income (4,028) - (4,028)
Working capital provided from operations 449,337 184,491 633,828
Decrease in long-term portion of net investment
in direct financing leases 280,789 129,725 410,514
730,126 314,216 1,044,342
Uses -of working capital:
Long-term bonds payable reclassified to liabilities
payable from restricted assets 360,000 170,000 530,000
Increase in net restricted assets 348,670 134,213 482,883
708,670 304,213 1,012,883
Increase in working capital 21 456 10 003 31,459
Element of net increase in working capital:
Current portion of net investment in direct financing lease 21.456 10.003 $ 31,459
See accompanying notes to combined financial statements.
0044J-Page 4
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1983
(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 (which are adjusted for amortization of purchase premium
or discount) and bank time certificates of deposit.
Bond Accounts
Under the provisions of the bond indenture agreements, the Corporation is required to maintain separate accountability for various types of funds
received. In addition, certain assets are restricted in the form of reserves for the protection of bondholders. 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
0044J-Page 5
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
(•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. _
0044J-Page 6
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
(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, 1983, leases receivable from the City of
Huntington Beach for the Civic Center and Central Library facilities total $11,412,201, net of unearned income. The site advances are included in the
long term leases receivable and are amortized over the term of the leases.
The following is a schedule of future minimum payments to be received under the terms of the leases:
Year ended
June 30, Amount
1984 $ 1,253,900
1985 1,253,900
1986 1,253,900
1987 1,253,900
1988 1,253,900
1989 and after 12,539,000
Total minimum lease payments 18,808,500
Less amount representing interest 7,396,299
Net investment in direct financing leases $11,412,201
(4) Bonded Debt
A summary of the Corporation's bonded indebtedness at June 30, 1983 is as follows:
Maturities
Date of Interest Original Outstanding Annual Period
Bond issue issue rates issue June 30, 1983 requirements covered
Civic Center:
Leasehold Mortgage Bonds, Varying amounts from
First Issue (a) January, 1972 5.00 - 7.00% $11,100,000 $ 8,580,000 t200,000 to $890,000 1975-1998
Central Library:
Leasehold Mortgage Bonds, Varying amounts from
Second Issue (b) September, 1972 5.00 - 7.00% 5,000,000 3,950,000 tl05,000 to $385,000 1975-1997
$16,100,000 $12.530,000
0044J-Page 7
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
NOTES TO COMBINED FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
(4) Bonded Debt, Continued
(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.
The outstanding bonds are subject to call and redemption at the option of the Corporation on any interest payment date. 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.
(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 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
1984 $ 360,000 $ 170,000 $ 530,000
1985 380,000 180,000 560,000
1986 400,000 190,000 590,000
1987 430,000 200,000 630,000
1988 450,000 210,000 660,000
1989 and after 6,560,000 3,000,000 9,560,000
$8,580,000 $3,950,000 $12,530.000
Statistical Exhibits (Unaudited)
0044J-Page 8
EXHIBIT I
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
STATEMENT OF BONDED DEBT
June 30, 1983
(Unaudited)
Date Years Rate Bonds Bonds Bonds
of of of Original Outstanding Matured Outstanding
Description Bonds Maturity Interest Issue July 1, 1982 During Year June 30, 1983
Civic Center Jan. 1972 1975-1982 7.00% $ 2,010,000 $ - $ - $ -
Leasehold 1983 5.70 330,000 330,000 330,000 -
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 81910,000 330,000 8,580,000
Central Library Sept. 1972 1975-1983 7.00% 1,220,000 330,000 160,000 170,000
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 - 640,000
1989-1991 5.60 770,000 770,000 - 770,000
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 4,110,000 160,000 3,950,000
Total bonded debt $16,100,000 $13,020,000 490 000 $12,530,000
0044J-Page 9 -
EXHIBIT II
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION
STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR
BASED ON BONDED DEBT
June 30, 1983
(Unaudited)
Fiscal Civic Center Issue Library Issue Total
Year Principal Interest Total Principal Interest Total Principal Interest Total
1984 $ 360,000 $ 463,925 $ 823,925 $ 170,000 $ 214,417 $ 384,417 $ 530,000 $ 678,342 $ 1,208,342
1985 380,000 444,125 824,125 180,000 203,157 383,157 560,000 647,282 1,207,282
1986 400,000 423,225 823,225 190,000 192,717 382,717 590,000 615,942 1,205,942
1987 430,000 401,225 831,225 200,000 182,087 382,087 630,000 583,312 1,213,312
1988 450,000 377,575 827,575 210,000 170,812 380,812 660,000 548,387 1,208,387
1989 465,000 352,825 817,825 230,000 158,712 388,712 695,000 511,537 1,206,537
1990 530,000 327,250 857,250 240,000 145,667 385,667 770,000 472,917 1,242,917
1991 555,000 298,100 853,100 260,000 131,667 391,667 815,000 429,767 1,244,767
1992 600,000 267,575 867,575 270,000 116,827 386,827 870,000 384,402 1,254,402
1993 640,000 234,575 874,575 290,000 101,002 391,002 930,000 335,577 1,265,577
1994 675,000 199,375 874,375 305,000 83,968 388,968 980,000 283,343 1,263,343
1995 725,000 162,250 887,250 320,000 66,000 386,000 1,045,000 228,250 1,273,250
1996 775,000 122,375 897,375 340,000 47,025 387,025 1,115,000 169,400 1,284,400
1997 830,000 79,750 909,750 360,000 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 $8,580,000 $4,192,400 $12,772,400 $3,950,000 $1,851,933 $5,801,933 $12,530,000 $6,044,333 $18,574,333
Principal Due: January September
Interest Due: July and January September and March
Parking Authority Of The
City Of Huntington Beach
Financial Statements
June 30, 1983 and 1982
With, Report: Of Certified Public Accountants
PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
ANNUAL FINANCIAL REPORT
June 30, 1983
TABLE OF CONTENTS
INTRODUCTORY SECTION
Board of Directors
Administrative Officials
FINANCIAL SECTION
Report of Certified Public Accountants
Financial Statements: Statement Page
Balance Sheets I 1
Statements of Revenues, Expenses and Changes in Equity II 2
Statements of Changes in Financial Position III 3
Notes to Financial Statements 4
STATISTICAL EXHIBITS (Unaudited) Exhibit
Statement of Bonded Debt I 7
Statement of Future Debt Requirements by Year on Bonded Debt II 7
PARKING AUTHORITY OF THE
CITY OF HUNTINGTON BEACH
BOARD OF DIRECTORS
Donald A. MacAllister Chairman
Jack Kelly Vice-Chairman
Ruth S. Bailey
Ruth E. Finley
Robert P. Mandic, Jr.
Ronald R. Pattinson
John A. Thomas
ADMINISTRATIVE OFFICIALS
Charles W. Thompson City Administrator
Robert J. Franz Chief of Administrative Services
Daniel T. Villella Finance Director
Alicia Wentworth - Secretary City Clerk
Financial Section
&RUNLIUMFO)l VOUH8
ARTHUR YOUNG & COMPANY
SUITE 900
3200 PARK CENTER DRIVE
P. O. BOX 2410
COSTA MESA, CALIFORNIA 92626
(714) 850-9500
The Members of the Parking Authority
City of Huntington Beach
Huntington Beach, California
We have examined the balance sheets of the Parking Authority of the City of Huntington Beach at June 30, 1983 and 1982 and
the related statements of revenues, expenses and changes in equity and changes in financial position for the years then
ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included
such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the statements mentioned above present fairly the financial position of the Parking Authority of the City
of Huntington Beach at June 30, 1983 and 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 consistent basis during the
period.
The accompanying statistical exhibits are presented for the purpose of additional analysis and are not a required part of
the financial statements of the Parking Authority of the City of Huntington Beach. These statistical exhibits were not
audited by us and, accordingly, we do not express an opinion on them.
September 16, 1983
0041J-Page 1
STATEMENT I
PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
BALANCE SHEETS
June 30, 1983 and 1982
ASSETS
1983 1982
Current assets:
Cash and short-term interest-bearing
investments of $100,000 in 1982 $ 201,118 $ 181,366
Receivables:
Interest receivable 36,091 41,422
Due from other entities 781 1,808
Total current assets 237,990 224,596
Restricted assets:
Investments, at cost which approximates market (Note 3) 1,051,719 895,037
Cash with fiscal agent 906 12,062
Total restricted assets 1,052,625 907,099
Property and improvements, at cost:
Land 371,06-5 371,065
Improvements 1,694,089 1,694,089
Less allowance for depreciation (964,347) (893,153)
Net property and improvements 1,100,807 1,172,001
$2,391,422 $2,303,696
LIABILITIES AND RETAINED EARNINGS
Liabilities payable from restricted assets:
Interest payable $ 24,591 $ 26,092
Current installment of bonds payable (Note 3) 95,000 90,000
Matured interest payable 906 12,062
Total liabilities payable from restricted assets 120,497 128,154
Bonds payable, net of current installment (Note 3) 1,325,000 1,420,000
Total liabilities 1,445,497 1,548,154
Retained earnings 945,925 755,542
$2,391,422 $2,303,696
See accompanying notes to financial statements.
0041J-Page 2
STATEMENT II
PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN EQUITY
Years ended June 30, 1983 and 1982
1983 1982
Operating revenue:
Rentals (Note. 2) $170,050 $170,050
Operating expenses:
Depreciation 71,194 71,194
Parking meters' - 3,225
Total operating expenses 71,194 74,419
Operating income 98,856 95,631
Non-operating revenue (expense) :
Interest income 166,053 131,781
Interest expense (74,526) (78,982)
Net income 190,383 148,430
Retained earnings, beginning of year 755,542 607,112
Retained earnings, end of year 12A5 _925 755 542
See accompanying notes to financial statements.
0041J-Page 3
STATEMENT III
PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
STATEMENTS OF CHANGES IN FINANCIAL POSITION
Years ended June 30, 1983 and 1982
1983 1982
Sources of working capital:
Operations:
Net income $190,383 $148,430
Item not requiring working capital:
Depreciation of land improvements 71,194 71,194_
Working capital provided from operations 261,577 219,624
Uses of working capital:
Long-term .bonds payable reclassified to liabilities 95,000 90,000
payable from restricted assets
Increase -in net restricted assets 153,183 127,198
248,183 217,198
Increase in working capital 13,394 2 426
Elements of net increase (decrease) in working capital:
Cash and short-term interest-bearing investments $ 19,752 $ 17,503
Interest receivable - (5,331) (14,851)
Due from other entities (1,027) (226)
Increase in working capital L13..394 2,426
See- accompanying notes to financial statements.
0041J-Page 4
PARKING AUTHORITY OF THE CITY
OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
June 30, 1983
(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 solely 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 W 0,050 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 I. 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.
� �
_ 0041J-Page 5
PARKING AUTHORITY OF THE CITY
OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
(2) Operations (Continued)
Under the terms of the lease agreement dated September 30, 1968 between the Parking Authority and the City, the lease is to
terminate after all of the 1968 revenue bonds are retired or provision for retirement has been made. All costs of maintenance
and operation have_ been assumed by the City. The City must also pay, in the form of additional rent, all taxes, assessments,
insurance, fees and other expenses of the Parking Authority. At the termination of the lease, the Parking Authority will retain
title to the parking facility.
(3) 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 1981 1982 June 30, 1982 1983 June 30,1983
1968 Parking September, 1970-72 6.00% $ 150,000 $ - $ - $ - $ - $ -
Revenue Bonds 1968 1973-79 4.75 470,000 - - - - -
1980-85 5.00 570,000 485,000 85,000 400,000 90,000 310,000
1986-93 5.25 1,110,000 1,110,000 - 1,110,000 - 1,110,000
$2,300,000 $1,595,000 85 000 $1,510,000 90 000 $1,420,000
The following is a schedule of required principal payments during the next five fiscal years and thereafter:
Year ended
June 30, Amount
1984 $ 95,000
1985 105,000
1986 110,000
1987 115,000
1988 120,000
1989 and after 875,000
$1,420,000
0041J-Page 6
PARKING AUTHORITY OF THE CITY
OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS, CONTINUED
June 30, 1983
(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.
Investments are maintained for the following accounts pursuant to the terms of the bond agreement (see Note 1):
1983 1982
Bond Service Fund $ 930,214 $787,814
Reserve Fund 121,505 107,223
$1,051,719 $895,037
The outstanding bonds are subject to call and redemption 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.
Statistical Exhibits (Unaudited)
0041J-Page 7-
PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH
June 30, 1983
EXHIBIT I
STATEMENT OF BONDED DEBT
(Unaudited)
Date Years Rate Bonds Bonds Bonds
of of of Original Outstanding Matured Outstanding
Description Bonds Maturity Interest Issue July 1, 1982 During Year June 30, 1983
1968 Parking Sept. 1968 1970-1972 6.00% $ 150,000 $ - $ - $ -
Revenue Bonds 1973-1979 4.75 470,000 - - -
1980-1985 5.00 570,000 400,000 90,000 310,000
1986-1993 5.25 11110,000 1,110,000 - 1,110,000
Total $2,300,000 $1,510,000 I9LOOO $1,420,000
EXHIBIT II
STATEMENT OF FUTURE DEBT REQUIREMENTS BY YEAR
BASED ON BONDED DEBT (Unaudited)
Fiscal Year Principal Interest Total
1984 $ 95000 $ 71,400 $ 166400
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 $1,420,000 J4L8 4631.868,463