HomeMy WebLinkAboutFY 1984/1985 Comprehensive Annual Financial Report FY Ended I� � o
� City of
� Huntington Beach,
1 California
� Comprehensive Annual
� Financial Report
A 'k I A,
HUNTINGTON BEACH
� For the Fiscal Year Ended
1 June 30, 1985
� Robert J. Franz, Chief of Administrative Services
The Water Fund met all income and debt service requirements of the 1963 Water Revenue ,
Bond trust indenture. The net loss is largely due to depreciation recognized on the
system's fixed assets. Debt service coverage information for the Emerald Cove Housing
Fund will be available in fiscal year 1985/86 since interest costs were capitalized in the ,
current fiscal year, due to requirements of governmental accounting standards.
Below is a table comparing the performance of the City's internal service funds to the
prior year. (The Equipment Replacement Fund was not in existence in the prior year). '
Self Insurance Equipment Replacement
1985 1984 1985
Revenues 2,352,842 2,397,964 477,305 ,Operating u
Operating Income (1,947,394) (2,513,598) 385,853
Net Income (1,572,809) (2,076,975) 601,869
The net loss in the self-insurance fund is expected to be made up in future year increases ,
charges to user departments and/or transfer from the General Fund.
FUND EQUITIES ,
Total fund equities increased $840,953 or 1.3% as shown in the table below: ,
Total Fund Total Fund Percent
Equity 84/85 Equity 83/84 Increase (Decrease)
Governmental Fund Types '
General $11,646,077 $10,382,894 12.2%
Special Revenue 14,906,948 12,550,903 18.8% ,
Debt Service 5,892,855 5,859,901 .1 %
Capital Projects 895,906 6,180,057 (85.6%) ,
Total $33,341,786 $34,973,755 (4.6%)
Proprietary Fund Types '
Enterprise 34,001,124 32,557,342 4.4%
Internal Service 363,007 (666,053) N/A
Total $34,364,131 $31,891,289 7.8%
Grand Total $673705,917 66.865,044 1.3% '.
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The large equity increases in the general and special revenue funds show the financial
health of the City's general operations. The equity decrease in the capital projects fund
and the small equity increase in the debt service funds is due to the completion of the
' Emerald Cove Housing Project and its subsequent reclassification as an enterprise fund.
The Equipment Replacement Fund began operations during the year with a $2.6 million
dollar final fund equity which caused the large increase in fund equity for internal service
' funds.
AGENCY FUNDS
Total assets and liabilities for the City's Agency funds increased by $1,330,795 or 23.2%
to $5,732,037. This is due to increased employee participation in the City's deferred
compensation plan which is the only Agency fund maintained.
DEBT ADMINISTRATION
Summarized below is the City's outstanding long-term debt at June 30, 1985.
Description Amount Outstanding
General Obligation Bonds
1970 Park Bonds 3,425,000
Revenue Bonds
1963 Water Revenue Bonds 1,111,000
Parking Authority Bonds 1,170,000
Redevelopment Agency Certificates of Participation
Emerald Cove Housing Project 4,600,000
' Leasehold Mortgage Bonds
HBPFC Civic Center - 1st Issue 7,840,000
HBPFC Library - 2nd Issue 3,600,000
Notes Payable
' Meadowlark Golf Course 1,804,917
San Joaquin Reservoir 366,312
State Coastal Conservancy 208,900
Lease Obligations 212,331
Other
Compensated Absences (Vacation/Sick Leave) 2,958,925
Redevelopment Agency Debt 5,994,195
Self Insurance Claims 5,186,000
' $ 33,291,580
A further analysis of the City's bonded indebtedness is included in notes 9 and 10 to the
financial statements.
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CASH MANAGEMENT
The City Treasurer is responsible for investing available cash in investments allowable by
law. These include certificates of deposit which are either government insured or
collateralized, government securities including SBA loans and Treasury Notes, and the
State Treasurer's Local Agency Investment Fund. The cash management system of the
City is designed to monitor and forecast revenues and expenditures. to insure the
investment of monies to the fullest extent possible. The criteria for selecting '
investments are, in order of priority; a) safety, b) liquidity, c) yield.
The average total of non-restricted cash and term investments during the year was
$30,739,834, which earned interest of $3,408,730, for a return of 11.08%. At
June 30, 1985, 91.6% of the City's total investments matured in less than 365 days.
During the year, the California Government Code was amended to require the !
City Treasurer to prepare an annual statement of investment policy and monthly report
containing specific information regarding the City's investment policy. The .
City' Treasurer has complied with this new law.
FIXED ASSETS
The general fixed assets of the City are used for general governmental functions and do
not include the fixed assets of enterprise and internal service funds. At June 30, 1985,
the City's general fixed assets amounted to $66,617,843. This amount represents the
original cost of the assets and is considerably less than their present value. Depreciation '.
of general fixed assets is not recognized.
The City implemented an Equipment Replacement Fund during the year. This fund is
operated as an internal service fund and all equipment purchased which replaces existing
equipment will be recorded in this fund, and leased to user departments.
In the future, the general fixed assets total will increase at a lesser rate due to fixed �.
asset retirements because much of the City's new equipment purchases will now be
capitalized in the Equipment Replacement Fund and not recorded as general fixed assets. ,
FUTURE OUTLOOK
Huntington Beach has always been known as a desirable place to live and work. A balmy, ,
clean-air climate, a coastal location and a strong local economy have always lured people
and industry here. But our future is not without challenges. Housing and transportation
concerns continue to impact all of Orange County while the public pushes for reduced
government costs without decreased services. We are also facing cutbacks in the Federal
Revenue Sharing and Community Development Block Grant Programs. There is the
continuing possibility of new legislation limiting the City's ability to generate revenue. '
The defeat of Proposition 36 in 1984 did not eliminate the possibility of similar initiatives
and we must continue to practice fiscal prudence.
We are very confident, however, that the City will meet these challenges. Our major '
revenue sources; property tax, sales tax, utility tax and oil related revenues are diverse
and stable enough to help provide a viable economic base. We are prepared to absorb
cutbacks in Federal programs since we have not developed a reliance on them 'in our t
operating programs.
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Redevelopment of older areas in our. City will play a vital part in future economic growth
and stability. There are plans and construction underway for new hotels, shopping,
theatres, office and residential construction. in the five redevelopment areas.
Redevelopment not only benefits people and businesses that reside in project areas, but
' the entire City as well. It can be used as a partnership tool between the private and
public sectors to attract new industry and housing to Huntington Beach which will enhance
the quality of life for everyone.
In short, Huntington Beach's future lies in the hands of its citizens. We can help by
providing the citizens well run, and efficient government which helps carry out their
desires.
' SINGL_E AUDIT
In accordance with the Single Audit Act of 1984, the City's grant programs which utilize
! Federal funds, either directly or passed through from state or county agencies, have been
subjected to audit requirements of the Federal Office of Management and Budget. This
included tests of compliance with Federal laws and regulations and an organization-wide
! examination of financial operations. The results of this expanded audit of grant activity
are included under separate cover.
' FINANCIAL REPORTING CERTIFICATES
Substantial improvement in report format and disclosure have been made to this year's
report in order for the City to apply for certificates of conformance in financial reporting
from the Government Finance Officers Association and the California Society of
Municipal Finance Officers. In order to be awarded a certificate, the City must publish
an easily readable and efficiently organized comprehensive Annual Financial Report which
must conform to industry standards. The report must satisfy generally accepted
! accounting principles and legal requirements. It is our belief that this report now
conforms to these standards.
!. ACKNOWLEDGEMENTS
' We wish to thank the City Council and the various City departments for conducting the
fiscal affairs of this City in a responsible and progressive manner. We would also like to
thank the members of the Accounting Division for their work in the preparation of this
report.
DAN T. VILLELLA
Director of Finance
ERT FR Z, h i e f
Administrative..Services Depart nt
DTV:skd
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0004J
CITY OF HUNTINGTON BEACH
PRINCIPAL CITY.OFFICIALS
CITY COUNCIL
Ruth S. Bailey Mayor
Robert P. Mandic, Jr. Mayor Pro Tern
Ruth E. Finley Councilperson
Jack Kelly Councilperson
Peter Green Councilperson
Donald A. MacAllister Councilperson
John A. Thomas Councilperson
J.
OTHER ELECTED OFFICIALS
Warren G. Hall City Treasurer
Gail Hutton City Attorney
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
Melvin Bowman Community Services Director
Raymond C. Picard Fire Chief
Earle W. Robitaille Police Chief
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i • CITY OF HUNTINGTON BEACH•
SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
June 30, 1985
GENERAL FIXED ASSETS:
' Land $ 25,871 ,290
Buildings 23,450,615
Machinery and equipment 9,329,761-
-Improvements other than buildings 6,846,597
Construction in progress 1 , 119,580
TOTAL GENERAL FIXED ASSETS $ 66,617,843
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INVESTMENTS IN GENERAL FIXED ASSETS FROM:
General Fund $ 11,434, 156
Special Revenue Funds 13,363,634
Capital Project Fund 21 ,216,765
Donations 20,603,288
$ 66,617,843
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rGENERAL LONG—TERM DEBT ACCOUNT GROUP
This group is used to account for City long—term debt not reported in
proprietary fund operations or accounted for in Trust Funds.
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CITY OF HUNTINGTON BEACH•
STATEMENT OF CHANGES IN GENERAL LONG—TERM DEBT
' June 30, 1985
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' Balance Balance ,
Outstanding Outstanding
June 30, Transfers/ June 30.,
' 1984 Additions Retirements 1985
1970 Park Bonds $ 3,695,000 $ — $ 270,000 $ 3,425,000
Public Facilities Corporation Leasehold Mortgage Bonds 12,000,000 — 560,000 1.1,440,000
Parking Authority Revenue Bonds 1,325,000 - 155,000 1, 170,000
California Coastal Conservancy
rNote Payable — 208,900 _ 208,900
Compensated absences 2,696,000 262,925 2,958,925
Certificates of participation 4,600,000 — 4,600,000 —
Equipment leases 316,043 — 103,712 212,331
Due to Other Funds 5,085,589 1 ,218,606 310,000 5,994,195
Totals $ 29,717,632 $ 1,690,431 $ 5,998,712 $ 25,409,351
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CITY OF HUNTINGTON`% iACH r
GENERAL FUND REVENUES BY SOURCE
Last ten fiscal years
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Licenses Use of
Fiscal and Fines and Money and
Year Taxes Permits Forfeitures Property ,-
1976 $ 14,034,909 $ 2,588,932 $ 135,216 $ 907,470
1977 17,429,627 2,817,209 214,808 1,050,938
1978 20,444,982 2,653,129 216,362 19415,212
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1979 19,496,640 2,485,540 2249026 1 ,814, 115
1980 23,881 ,999 2,597,954 398,877 1,820,700 r
1981 28,245, 128 2,984,303 1,526,072 2,552,637
1982 31 ,984,635 2,736,785 1,515,914 3,223, 113
1983 36,017,526 2,673,912 1,748,817 3,237,373
1984 39,325,858 3,384,322 1,923, 143 3,734, 107
1985 42,997,096 3,591,493 2,093,975 3,899,972 r
Source: Administrative Services Department, City of Huntington Beach
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EXHIBIT A
' Charges
From Other For Current Other
Agencies Services Revenue Total
' $ 2,040,207 $ 825,912 $ 49,277 $ 20,581 ,923
' 2,567,992 942,760 48,714 25,072,048
3,076,250 938, 182 99,600 28,843,717
' 5,502,464 953,790 84,458 30,5610033
3,874,763 1 , 158,294 90, 149 33,822,736
4,495,328 1,382,055 366,125 41 ,551 ,648
2,671 ,003 1, 153,439 529,704 43,814,593
1,459,278 1,916,286 1, 179,902 48,233,094
1,871 ,988 1,924,893 1,052,519 53,216,830
5,953,540 2,202, 185 364, 156 61 , 102,417
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OCITY OF HUNTINGTON BEACH EXHIBIT B
GENERAL FUND EXPENDITURES BY PROGRAM
Last ten fiscal years
' Fiscal Support Public Public Total
Year Administrative Services Services Safety General Fund
1976 $ 3,194,089 $ 1 ,247,564 $ 6,653,560 $ 12,233,405 $ 23,328,618
1977 2,664,478 2,493,348 7,747,535 14,074,326 26,979,687
' 1978 3,635,719 1,814,454 8,673,505 14,953,652 29,077,330
1979 5,594, 195 2,375,756 7,786,972 16,709,463 32,466,386
1980 6,723, 175 2,001 ,019 11 ,387,668 16,789,782 36,901 ,64.4 .
1981 5,001 , 191 4,792,744 11 ,784,064 18,916,394 40,494,393
' 1982 4,493,484 3,654,024 15,516,826 20,429,266 44,093,600
' 1983 4,592,245 3,237,842 18,533,206 22,383,746 48,747,039
1984 6,097,373 3,479,597 20,241 ,764 23,358,399 53, 177, 133
1 1985 6,349,349 3,098,315 23,661 ,582 26,584,382 59,693,628
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Source: Administrative Services Department, City of Huntington Beach
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� CITY OF HUNTINGTON, ,ACH
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
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Secured Taxes
Fiscal Total Total Delinquency
Year Levy Collections Amount Percent
1976 $ 8,852,049 $ 8,587,784 $ 82,622 .93
1977 9,982,983 9,844,450 116,794 1 . 17 r
1978 12,563,144 12,336,834 186,310 1 .49
1979 5,635,879 5,525, 120 110,759 1 .97
1980 8,842,899 8,602,751 240,148 2.72
1981 10,244,680 9,872,496 352,184 3.44
1982 10,300,308 9,893,563 406,745 3.95 r
1983 11 ,405,210 11 ,116,699 288,511 2.53
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1984 11 ,402,791 11 ,664,690 430,471 3.78
1985 12,418,398 11 ,633,797 424,700 3.42
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Source: Administrative Services Department, City of Huntington Beach
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' 'EXHIBIT C
Unsecured._Taxes
Total Total Delinquency
Levy, Collections Amount Percent
$ 545,344 $ 516,539 $ 28,798 5.28
549,•994 538,810 6,751 1 .23
742,053 711 ,519 30,534 4. 11
' 561 ,420 537;307 24,113 4.30
861 ,976 839;468 22,508 2.61
827, 168 789,078 38,090 4.60
' 808,024 737,425 46,596 5.77
960,008 908,666 51 ,342 5.35
' 982, 118 942,305 25,543 2.60
1 ,032 003 955,100 33,094 3.21
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`\ CITY OF HUNTINGTO NCH r
GENERAL BONDED DEBT RATIOS .
Last Ten Fiscal Years
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Assessed Ratio of
General Market Debt to
Fiscal Bonded Value* Assessed
Year Debt (in 1 ,OOOs) Valuation Population
1976 $ 5,410,000 $ 2,322,492 .23% 151 ,500
1977 5,220,000 2,840,296 .18% 157,800
1978 5,020,000 3,417,288 .15% 161 ,301
1979 4,810,000 3,327, 136 .14% 167,409
1980 4,590,000 3,935,712 .12% 172,200
1981 4,360,000 4,297,220 .10% 173,393 r
1982 4, 150,000 5,219,684 .08% 175,714
1983 3,930,000 5,672,214 .07% 178,706
1984 3,695,000 6,292,926 .06% 179,990
1985 3,425,000 6,825,900 .05% 181 ,000
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Source: Administrative Services Department, City of Huntington Beach r
Orange County Assessor
*Market value represents assessed valuation except for fiscal year 1976 through
1981. For these years assessed valuation was 25% of market value. Property
is assessed under guidelines of Proposition 13.
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iEXHIBIT D
Ratio of
Debt Service
' Bonded to Total
Debt Debt Service General Fund
Per Capita Principal Interest Total Expenditures
$ 35.71 $ 170,000 $ 318,425 $ 488,425 2. 1%
33.08 190,000 310,450 500,450 1 .9%
' 31 .12 200,000 30.1 ,925 501 ,925 1 .7%
28.73 210,000 292,437 502,437 1.5%
26.65 220,000 282,375 502,375 1 .4%
25. 14 230,000 272,737 502,737 1 .2%
23.62 210,000 .260,525 470,525 1 . 1%
' 21 .99 220,000 248,450 468,450 1 .0%
20.53 235,000 235,800 470,800 .9%
18.92 270,000 221 ,700 491 ,700 .8%
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EXHIBIT E
CITY OF HUNTINGTONQACH
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS 7-
(Per $100 of Assessed Valuation) !
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Last ten fiscal years
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Metropolitan
Fiscal Basic Orange School Water
Year Levy City County Districts District Others Total
1975-76 $ - $ .40500 $ .40750 $ 1 .55712 $ .03500 $ . 11338 $ 2.51800
1976-77 .40500 .35750 1 .52302 .03250 .13013 2.44815
1977-78 - .38750 .33250 1 .56920 .03250 .12020 2.44190
1978-79 1 .00000 .04930 .00080 .14987 .02750 .00428 1 .23175
1979-80 .1 .00000 .04930 .00070 .12572 .02560 .00393 1 .20465
1980-81 1 .00000 .04635 .00057 . 12430 .02225 .00325 1 . 19672
1981-82 1 .00000 .04635 .00050 . 12810 .01980 .00270 1 . 19745
1982-83 1 .00000 .05756 .00043 . 11656 .01660 .00237 1 .19352
1983-84 1 .00000 .05682 .00039 .12096 .02370 .00210 1 .20397
1985-85 . 1 .00000 .05630 .00032 .09962 .01560 .00177. 1 . 17361
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Source: County of Orange
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' • EXHIBIT F
CITY OF HUNTINGTON BEACH
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
June 30, 1985
' 1984-85 Assessed Valuation: $6,825,899,949 (after deducting $7,905,635
redevelopment tax allocation increment)
Amount
Percent Outstanding
DIRECT AND OVERLAPPING BONDED DEBT: Applicable June 30, 1985
' Orange County 8.354 $ 210, 103
Orange County Building Authorities 8.354 1 ,045,001
Orange County Flood Control District 8.354 1 ,006,239
Metropolitan Water District 1.756 7,856,993
Municipal Water District of Orange County
Water Facilities Corporation 10.822 8,008,280
' Orange County Sanitation District #3 11 .170 246,745
Orange County Sanitation District #11 99.923 413,681
Coast Community College District Authority 30.864 5,770,024
' Los Alamitos Unified School District 2.046 20,255
Huntington Beach Union High School District 70.824 2,478,840
Fountain Valley School District 32.094 189,354
Huntington Beach School District 97.118 2,257,993
' Ocean View School District (Various issues) 92.478-92.759 2,726,945
Westminster School District (Various issues) 30.438-30.735 25,931
City of Huntington Beach 100.000 3,450,000
' City of Huntington Beach Building Authorities 100.000 12,840,000
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT 48,546,384
Less: MWDOC Water Facilities Corp. (100% self-supporting) 8,008,280
' TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $ 40,5381104
' RATIOS TO ASSESSED VALUATION:
Direct Debt ($16,290,000) 0.24%
Total Gross Debt 0.71%
Total Net Debt 0.59%
SHARE OF AUTHORIZED AND UNSOLD BONDS:
Metropolitan Water District $ 6,409,400
Fountain Valley School District $ 1 ,588,011
Ocean View School District $ 3,885,675
' STATE SCHOOL BUILDING AID REPAYABLE AS OF JUNE 30, 1984: $38,903,408
Source: California Municipal Statistics, Inc.
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' EXHIBIT G
CITY OF HUNTINGTON BEACH•
COMPUTATION OF LEGAL DEBT MARGIN
June 30, 1985
' Assessed Valuation $ 6,825,900,000
Debt limit: 15% of assessed value 1 ,023,885,000
' Amount of debt applicable to debt limit:
Total bonded debt $ 3,425,000
Less net assets in debt service fund 53,754
' Total amount of debt applicable
to debt limit 3,371 ,246
' Legal Debt Margin $ 1 ,020,513,754
' Source: Administrative Services Department, City of Huntington Beach
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\ CITY OF HUNTINGTON',jEACH
WATER REVENUE BOND COVERAGE k r
Last Ten Fiscal Years
Expenses Net Revenue
(Excluding Available
Fiscal Total Interest and for Debt
Year Revenues Depreciation) Service
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1976 $ 3,798,707 $ 2,591 ,971 $ 1 ,206,736
1977 4,333,253 2,597,350 1 ,735,903
1978 4,951 ,770 3,496,631 1 ,455, 139
1979 5,539,891 3,653,791 1 ,886, 100
1980 6,082,925 3,643,233 2,439,692
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1981 5,814, 133 4,780,478 1 ,033,655
1982 6,557,815 5,286,338 1 ,271 ,477
1983 6,521 ,826 6,255, 114 266,712
1984 7,035,318 6,657,552 3779766
1985 8,049,892 7,687, 105 362,787
Source: Administrative Services Department, City of Huntington Beach
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® • EXHIBIT H
' Debt Service Requirements
Principal Interest Total Coverage
' $ 110,000 $ 106,596 $ 216,596 5.6%
110,000 110,012 210,012 8.3%
t120,000 95,400 215,400 6.8%
' 120,000 91 ,500 211 ,500 8.9%
130,000 87,405 217,405 11 .2%
' 130,000 83, 115 213, 115 4.8%
140,000 78,660 218,660 5.8%
150,000 73,800 223,800 1 .2%
' 150,000 68,700 218,700 1 .7%
160,000 42,718 202,718 1 .8%
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n EXHIBIT I r
\ CITY OF HUNTINGTON BEACH
CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSITS
Last ten fiscal years
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Bank
Number and Savings
of and Loan
Fiscal Building Percent Estimated Percent Deposits Percent
Year Permits Change Valuation Change (in 0001s) Change r
1975-76 6,476 - $ 119,913,390 - $ 473,917 -
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1976-77 6,939 7. 1% 179,328,608 49.6% 607,297 28. 1%
1977-78 6,187 (10.8%) 150,2879067 (16.2%) 714,203 17.6%
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1978-79 4,457 (28.0%) 91 ,461 ,610 (39. 1%) 856,340 19.9%
1979-80 4,012 (10.0%) 91 ,859,447 .4% 955,539 11 .6% r
1980-81 3,230 (19.5%) 108,794,271 18.4% 1 ,045,345 9.4%
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1981-82 2,539 (21 .4%) 58,298,912 (46.4%) 1 , 134,324 8.5%
1982-83 2,776 9.3% 52,458,315 10.0% 1 ,388,634 22.4%
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1983-84 3,090 11 .3% 110,747,369 111 .1% 1 ,801 ,778 29.8%
1984-85 3,163 2.3% 142,336,138 28.5%
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*Bank and savings and loan deposits statistics for 1984-85 were not. r
available in time. for this report.
Source: City of Huntington Beach, Development Services Department and the
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Findley Reports on California Financial Institutions.
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0 EXHIBIT J
CITY OF HUNTINGTON BEACH•
PRINCIPAL PRIVATE EMPLOYERS
t (Alphabetical Order)
June 30, 1985
,. American Eagle Wheel Company
Cambro Manufacturing Company
John Thomas Trucking Company
General Telephone
Huntington Center
Huntington Humana Hospital
McDonnel Douglas
Mercury Savings
' Pacifica Hospital
Rainbow Disposal
Weiser Lock
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Note: Excludes Governmental Agencies
' Source: Business License Division., City of Huntington Beach
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CITY OF HUNTINGTON�-cACH
INSURANCE IN FORCE r
June 30, 1985
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Cal-Surance - Broker
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Municipal General & Auto Liability
Excess Liability
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Excess Liability
Excess Liability
Helicopter Hull & Liability -
1984 Hughes j
Helicopter Liability -
1963 & 1964 Bell 47's
Helipad Liability, r
Watercraft Hull & Liability
Garagekeeper' s Legal Liability
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Robert F. Driver - Broker
Fire, Ext., Coy., Flood, Earthquake
Fire, Ext., Cov., Flood, Earthquake
Fire, Ext., Coy., Flood, Earthquake
Fire, Ext., Cov., Flood, Earthquake
Fire, Ext., Cov., Flood, Earthquake r
Fire, Ext., Cov., Flood, Earthquake
Fire, Ext., Cov., Flood, Earthquake
Boiler and Machinery
Public Official & Employee
Faithful Performance Bonds
Special Event Liability
Robert E. French - Broker
Medical Stop Loss r
Employee Travel. Accident Policy
Fred S. James & Co. - Broker
Excess Workers' Compensation
r
Source: Administrative Services Department, City of Huntington Beach
-82-
EXHIBIT K
Annual
Insurance Company Policy No. Expires Premium
Planet Insurance Company KL5973189 04/01/86 $ 182, 142
Associated International XS1110325 04/01/86 75,000
Insurance Company
First State Insurance Co. EL982452 04/01/86 65,081
Chubb Insurance Company 7937-88-67 04/01/86 22,304
Americas Insurance Company HA-2-0277 04/01 /86 51 ,096
tPuritan, Insurance Co. H-2-6761 . 04/01/86. 7,563
Puritan Insurance Co. P-2548 04/01/86 5,813
Maryland Casualty Co. MH160 04/01/86 3,700
Admiral Insurance Co. A84EG5102 12/15/85 4,038
Harbor Insurance Co. H1215795 06/05/86 64,000
Progressive Insurance Co. CF 46781 78 06/05/86 64,000
Hudson Insurance Co. H5010112 06/05/86 32,000
First State Insurance Co. GCO04874 06/05/86 20,000
' Integrity Insurance. Co. SP203358 06/05/86 20,000
Imperial Casualty NUA-CF25053 06/05/86 20,000
Utica Insurance Co. PMMOIM01907 06/05/86 30,000
Kemper Group Ins. Co. 3XN17455 04/01/86 8,.500
' INA CPB JO 1110986 07/01/86 8,762
Western World GLA185203 05/15/86 1 ,500
Republic National 6J19086 05/01/86 62,850
Massachussetts Indemnity TAB 1664 07/01/86 625
' Employers' Reinsurance Co. C-35059 07/01/86 42,000
TOTAL $ 790,974
' -83-
n EXHIBIT L
/ CITY OF HUNTINGTON-,iACH
DEMOGRAPHIC STATISTICS
r
City Population
Percent Square Orange County as a Percent of
Year Population Increase Miles Population County Population r
1910 815 - 3.57 34,436 2.3%
r
1920 1 ,687 107.0% 3.57 61 ,375 2.7%
1930 3,690 118.0% 3.57 118,647 3. 1% r
1940 3,738 1 .3% 3.57 130,760 2.8%
1950 5, 158 38.0% 4.72 216,224 2.4%
i
1960 11 ,492 122.8% 23.47 703,925 1.6%
r
1970 116,400 912.9% 26.73 1 ,420,386 8.2%
1980 172,200 47.9% 27.20 1 ,931 ,570 8.9% r
1981 173,393 1 .7% 27.20 1 ,972,724 8.8%
1982 175,714 1.3% 27.20 1 ,993,831 8.8% r
1983 178,706 1 .8% 27.20 2,036,390 8.8%
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1984 179,990 .7% 27.20 2,066,498 8.7%
1985 180,000 .0% 27.20 2,074,326 8.7%
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Source: Department of Development Services, City of Huntington Beach
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i
' CITY OF HUNTINGTON BEACH EXHIBIT M
' MISCELLANEOUS STATISTICS
June 30, 1985
Year of incorporation 1909
Form of government Charter City — Council —
City Administrator
' Area 28 square miles
Population 180,000
Miles of streets 362.4 miles
Number of street lights 12,275
tFire protection
Number of stations 7
Number of firefighters and officers 126
Police protection:
' Number of stations 1
Number of police officers 190
Municipal water department:
' Number of customers 44,897
Average daily consumption 25.0 million gallons
Miles of water mains 430
' Sewers:
Sanitary sewers 270 miles
Storm sewers 31 miles
' Recreation and culture:
Number of parks 57
' Acres of beach 43.3
Number of libraries 4
Number of volumes 300,000
' Total library circulation 1 ,700,000
Employees 1 ,309
Source: Administrative Services Department, City of Huntington Beach
—85—
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11
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f
COMPREHENSIVE ANNUAL FINANCIAL REPORT
' CITY OF HUNTINGTON BEACH
FISCAL YEAR ENDED JUNE 30,E 1985
1
' ZITY OF HUNTINGTON BEACH
COMPREHENSIVE ANNUAL FINANCIAL REPORT
., Fiscal year ended June 30, 1985
' Table of Contents
' INTRODUCTORY SECTION
Page
Number
Table of Contents
Letter of Transmittal iii-xi
Elected and Administrative Officials xii
Organizational Chart xiii
FINANCIAL SECTION
Schedule
Accountants' Report 1
General Purpose Financial Statements:
' Combined Balance Sheet — All Fund Types and
Account Groups A-1 2 — 3
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances — All Governmental
Fund Types A-2 4 — 5
' Combined Statement of Revenues, Expenditures and
Changes in Fund Balances — Budget and Actual —
General, Special Revenue and Debt Service
' Fund Types A-3 6 — 8
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings — All Proprietary
Fund Types A-4 9
Combined Statement of Changes in Financial
Position — All Proprietary Fund Types A-5 10
Notes to Financial Statements 11 — 32
Financial Statements of Individual Funds and Account Groups:
General Fund:
Comparative Balance Sheet B-1 33
Statement of Revenues, Expenditures and
Changes in Fund Balance — Budget and Actual B-2 34
' Special Revenue Funds:
Combining Balance Sheet C-1 35 — 36
Combining Statement of Revenues, Expenditures
! and Changes in Fund Balances C-2 37 — 38
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances — Budget and Actual C-3 39 — 44
Page ,
Schedule Number
Debt Service Funds: ,
Combining Balance Sheet D-1 45 - 46
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 47 - 48 '
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual D-3 49 - 51
Capital Projects Funds: '
Combining Balance Sheet E-1 52 - 53
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances E-2 54 - 55
Enterprise Funds:
Combining Balance Sheet F-1 56 - 57 ,
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings F-2 58 - 59
Combining Statement of Changes in Financial Position F-3 60 - 61
Internal Service Funds:
Combining Balance Sheet G-1 62
Combining Statement of Revenues, Expenses and ,
Changes in Retained Earnings G-2 63
Combining Statement of Changes in Financial Position G-3 64
Agency Fund: '
Statement of Changes in Assets and Liabilities H-1 65
General Fixed Assets Account Group:
Schedule of General Fixed Assets by Source I-1 66
General Long-Term Debt Account Group: '
Statement of Changes in General Long-Term Debt J-1 67
STATISTICAL SECTION ,
Exhibit
General Fund Revenues by Source - Last Ten Fiscal Years A 68 - 69 ,
General Fund Expenditures by Program - Last Ten
Fiscal Years B 70
Property Tax Levies and Collections - Last Ten
Fiscal Years C 71 - 72 ,
General Bonded Debt Ratios - Last Ten Fiscal Years D 73 - 74
Property Tax Rates - All Overlapping Governments - ,
Last Ten Fiscal Years E 75
Computation of Direct and Overlapping Bonded Debt F 76
Computation of Legal Debt Margin G 77
Water Revenue Bond Coverage - Last Ten Fiscal Years H 78 - 79 ,
Construction Activity and Bank and Savings and
Loan Deposits - Last Ten Fiscal Years I 80
Principal Private Employers J 81 '
Insurance in Force K 82 - 83
Demographic Statistics L 84
Miscellaneous Statistics M 85
-ii- ,
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
' November 14, 1985
The Honorable Mayor and City Council
City of Huntington Beach, California
Mayor and Councilmembers:
' We are pleased to submit to you the Comprehensive Annual Financial Report of the City
of Huntington Beach for the fiscal year ending June 30, 1985. We believe the data, as
presented, is accurate in all material respects and presents the financial activity of the
City in a manner that will enable the reader of this report to fully understand the fiscal
position of the City.
The financial statements are prepared in accordance with the pronouncements of the
Government Accounting Standards Board (GASB) and include the report of our
independent certified public accountants, Diehl, Evans and Company.
The report consists of three parts:
1. Introductory Section - letter of transmittal, City Organizational Chart and
principal city officials.
2. Financial Section - combined financial statements, combining financial
' statements and footnote disclosures.
3. Statistical Section - pertinent financial and non-financial data that gives
readers a broader perspective on our City.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
' The City's financial statements are prepared on the modified accrual basis for all
governmental fund types except for the financial statements of the proprietary fund types
which are prepared on the accrual basis. The City's system of internal control is designed
' to provide reasonable, but not absolute assurance that City assets are safeguarded against
loss or misuse. The City has been careful to analyze specific internal controls to ensure
that the cost of implementing a control does not exceed the expected benefits.
-iii-
1
The City Council adopts the annual budget by resolution and may amend or revise the '
budget at anytime. Budgetary control is maintained at the departmental level. The City
Administrator can transfer funds from one object category to another without increasing
the .total budget of any department. The City utilizes the encumbrance system of ,
accounting where outstanding encumbrances are reported as a reservation of fund balance
at year-end in governmental fund types. These outstanding encumbrances are then
reappropriated into the new fiscal year. '
REPORTING ENTITY AND ITS SERVICES
Huntington Beach is a full-service City, including public safety, parks and recreation, ,
planning and zoning, public works and related administration.
This report includes the financial activity of certain separate legal entities whose
activities are effectively controlled by the City. These entities are:
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION (HBPFC) - This
entity was formed in 1970 solely to issue bonds to finance the construction of
the Civic Center and Central Library complexes. The HBPFC then entered into
a long term leasing arrangement with the City where title to the facilities
passes to the City at the end of the lease. ,
The lease payments to HBPFC are to be used to retire the debt and to make
capital improvements to the facilities. The original governing board of HBPFC
was appointed by the City Council. '
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH (THE
REDEVELOPMENT AGENCY) This entity was formed in 1967 to facilitate the ,
redevelopment of certain areas of the City. The City Council serves as the
governing board of the Redevelopment Agency.
PARKING AUTHORITY OF THE CITY OF HUNTINGTON BEACH (PARKING
AUTHORITY) This entity was formed in 1967 to solely issue bonds to finance
the construction of off-street parking facilities and then lease these to the '
City. The Parking Authority's governing body is the City Council.
WEST ORANGE COUNTY WATER BOARD Huntington Beach serves as fiscal ,
agent for this entity which provides for the construction, operation and
maintenance of a water distribution system to various cities. The activity of
this entity is recorded in the Water Utility Fund.
There are many other governmental agencies, including the County of Orange, the
Huntington Beach and Ocean View Unified School Districts, as well as the Coast
Community College District which provide services within the City. These entities have ,
independently elected governing boards and are not a component unit of the City of
Huntington Beach and their financial information is not included in this report.
-iv- '
GENERAL GOVERNMENT FUNCTIONS
General governmental functions include the operations of the General, Special Revenue,
' Debt Service and Capital Projects Funds. Below is an analysis of general governmental
revenues which increased by $7,014,302 or 10.6% over the prior year and a explanation of
the fluctuations:
Percent
Amount Amount Change
' 84/85 83/84 from 83/84
Property Taxes 17,638,321 16,935,465 4.2%
' Other Taxes 25,923,1 13 22,878,559 23.9%
Licenses and Permits 5,963,411 5,099,573 16.9%
Fines, Forfeitures & Penalties 2,093,975 1,923,143 8.9%
From Use of Money & Property. 5,895,407 6,177,364 (4.6%)
From Other Agencies 12,888,344 9,937,325 29.7%
Charges for Current Service 2,261,424 2,009,901 12.5%
Other 364,156 1,0522519 (65.4%)
Total $73,028,151 $662013,849 10.6%
. The increase in property tax revenues is due to normal reassessments of property
under the guidelines and new development of Article 13-A of the California
Constitution.
. The increase in other tax revenues is due to large increases in sales and utility
tax revenues.
' License and permit and charges for current services was higher because of
increased residential and commercial development in the City.
. , Revenue from the use of money and property decreased a small amount due to
lower interest rates.
. Revenue from other agencies increased due to the reinstatement of the motor
vehicle in lieu state subventions which brought in an additional $4.1 million
dollars. But there was also decreased grant activity in special revenue and
capital projects funds which offset some of the other increases.
' Revenues from fines, forfeitures and penalties increased due to more citations
for traffic and general activity.
Other revenue decreased substantially largely because $426,000 of insurance
money on pier damage from the March, 1963 storm was received in fiscal year
1983/84. No such transaction occurred in fiscal year 1984/85.
1
-v-
Below is an analysis of general governmental expenditures for the year and a comparison '
with the prior year followed by an explanation of significant fluctuations:
Percent ,
Amount Amount Change
84/85 83/84 from 83/84
City Council 128,635 111,048 15.8% '
City Administrator 730,966 480,390 52.1%
City Treasurer 267,882 141,158 89.7% ,
City Attorney 806,146 729,693 10.5%
City Clerk 194,834 163,473 19.2%
Administrative Services 2,558,796 2,362,261 8.3%
Development Services 1,759,542 1,632,865 7.8%
Fire 9,493,834 8,568,812 10.8%
Police 17,122,642 15,601,080 9.7%
Community Services 5,286,948 5,070,115 4.2%
Public Works 13,651,510 12,528,418 9.0%
Housing & Community Dev. 966,384 685,654 40.9%
Non-Departmental 4,867,215 3,740,992 30.1% .
Capital Outlay 7,873,719 8,620,833 (8.6%), 1
Debt Service 1,896,104 1,830,149 3.6%
Total $67,605,157 $62,266,941 8.2%
. City Council Expenditures increased largely because the Secretary to the .City
Council position was filled for the entire year. In 1983/84 the position was '
vacant for a portion of the year.
. City Administrator - Expenditures increased due to the addition of the
Productivity and Research Program this year. In prior years, this program was ,
distributed to various departments.
. City Treasurer - Expenditures increased because of a $64,000 contract with
Golden State Sanwa Bank to handle water and receivable billings. In prior years,
this was done free of charge.
. City Attorney - Increased personnel costs due to higher activity in civil litigation. ,
. City Clerk - An election in November, 1984 caused increased expenditures.
There was no election in the prior year.
. Administrative Services - The increase is due to normal merit and cost-of-living
raises granted city employees and slightly higher operating costs. ,
. Development Services - The increase is due to normal merit and cost-of-living
raises granted city employees and slightly higher operating costs. '
. Fire - Increase largely due to the expansion of the Reserve Firefighter Program
from 30 to 60 reservists on July 1, 1984.
-vi- ,
Police - The increase is due to normal increases and nine full-time positions
added on July 1, 1984.
' Community Services - The smaller than expected increase is due to an
elimination of two management positions on July 1, 1984.
Public Works - The increase is caused by normal increases and increased activity
' on the maintenance of the City's infrastructure.
Housing and Community Development - Higher due to increased activity in the
Redevelopment Agency and increase in rehabilitation loan activity.
Non-Departmental - The increase is due to $1.1 million transferred to the Self
Insurance Fund for liability claims.
Capital Outlay - Lower due to decreased capital project activity in Special
Revenue and Capital Projects Funds.
Debt Service - Changes in these expenditures is due to requirements of bond
indentures.
PROPRIETARY FUNDS
' The City operated three enterprise funds and two internal service funds during the
year. Enterprise funds include the Water Utility Fund, the Meadowlark Golf Course
fund and the Emerald Cove Housing fund and are supported primarily through user
charges to the public. The internal service funds include the Self-Insurance Fund and
' the Equipment Replacement Fund and are supported by charges to user departments
within the city.
' Shown below is a table comparing the performance of the City's enterprise .funds to
the prior year. (The Emerald Cove Housing Fund was not in existence in the prior
year).
Meadowlark Emerald Cove
Water Utility Golf Course Housing
1985 1984 1985 1984 1985
Operating Revenues 7,508,521 6,386,071 209,425 188,311 168,525
Operating Income
(Loss) (1,368,003) (1,435,956) 168,483 147,368 43,033
Net Income (882,781) (878,613) 75,826 73,774 120,715
Income Available
for Debt Service 362,782 377,766 244,143 210,361 120,715
' Debt Service 202,718 218,700 150,000 150,000 N/A
' Debt Service
Coverage 1.78 1.73 1.63 1.40 N/A
-vii-
PEOPLE
%Axy Of
CITY COUNCIL
Huntington
Organizational Chart CITY
ADMINISTRATOR
CITY CITY
TREASURER ATTORNEY CITY CLERK
HUNIINGTON B(A(H -
BUSINESS
LICENSE
1
X
J.
1 POLICE FIRE PUBLIC WORKS DEVELOPMENT ( ADMINISTRATIVE COMMUNITY
SERVICES ( SERVICES SERVICES
UNIFORM FIRE
DIVISION
PREVENTION ENGINEERING ! PLANNING PERSONNEL LIBRARY
RECREATION&
L BUILDING
ADMIN. J ' REAL OPERATIONS WATER PROPERTY HUMAN
SERVICES ' RESOURCES
INVESTIGATION HOUSING/
LANDSCAPE 1 REDEVELOPMENT FINANCE BEACH
DIVISION
SPECIAL INFORMATION
OPERATIONS L.MAiNTENANCE SYSTEMS
INSURANCE&
BENEFITS
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DIEHL, EVANS AND COMPANY
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
WIN G. PETERS, C.P.A. CERTIFIED PUBLIC ACCOUNTANTS OTHER OFFICES AT:
'DONALD H. PETERSON,C.P.A.
1910 NORTH '6USH STREET 2965 ROOSEVELT STREET
*DONALD E. CALLAHAN, C.P.A.
:L. PETER SCHERER. C.P.A. SANTA ANA. CALIFORNIA 92706-2894 CARLSBAD, CALIFORNIA19) 79-23 92008-2389
�RODNEY K. MCDANIEL, C.P.A. 1619) 729-2343
(714) 542-4453
*RALPH H.WEINTRAUB, C.P.A. 120 WEST WOODWARO AVENUE
•PHILIP H. HOLTKAMP, C.P.A. ESCONDIDO, CALIFORNIA 92025-9990
'THOMAS M. PERLOWSKI, C.P.A.
(619) 741-3141
EDWARD GRODSKY, C.P.A.
ONE CIVIC PLAZA, SUITE 265
ELLIS C. DIEHL. C.P.A.(RETIRED) NEWPORT BEACH, CALIFORNIA 92650
BRYN S. EVANS, C.P.A.(RETIRED) September 24, 1985
(714) 644-6156
'A PROFESSIONAL CORPORATION
ACCOUNTANTS' REPORT
City Council
City of Huntington Beach
Huntington Beach, California
' We have examined the combined financial statements of the City of Huntington
Beach, as of and for the year ended June 30, 1985 , 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 our opinion, the combined financial statements referred to above present
fairly the financial position of the City of Huntington Beach, at June 30,
1985, and the results of its operations and the changes in 'financial position
of its proprietary fund types for the year then ended , in conformity with
generally accepted accounting principles applied on a basis consistent with
that of the preceding year , except for the change with which we concur ,
regarding the recording of Public. Facilities Corporation and Parking Authority
fixed .assets and long—term debt as more fully described in Note 15 to the
' financial statements.
Our examination was made for the purpose of forming an opinion on the combined
financial statements taken as a whole. The combining and individual fund
financial statements are presented for purposes of additional analysis and are
not a required part of the combined financial statements of the City of
' Huntington Beach. The information has been subjected to the auditing
procedures applied in the 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 other data included in the
Statistical Section is presented primarily for, supplemental analysis purposes. .
The scope of our examination did not include the statistical information and we
do not express an opinion or any other form of assurance concerning it.
0 CITY OF HUNTINGTON(_)CH L
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
r
June 30, 1985 I
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
ASSETS r
Cash and investments (Note 1c) $119667,648 $13,250,052 $ 110,505 $165606 L
Cash with fiscal agent - - 5,657,937 728:915
Taxes receivable 473,441 - 9,441 -
Accounts receivable 460,426 873,622 - 1 ,451
Interest receivable 73,280 79,738 114,972 5,293
Due from other funds (Note 7) 1 ,926,495 4,735,628 - 6, 192
Due from other agencies 855,914 479,741 - -
Inventory (Note 1d) 148,906 - - - L
Deposits and other assets 209,937 - - -
Property, plant and equipment, r
net (Note le) -
Amount available in debt service funds - - - -
Amount to be provided for payment of
long-term debt
I
TOTAL ASSETS $15,816,047 $19,418,781 $51892,855 $907,457
LIABILITIES AND FUND EQUITY r
LIABILITIES:
Accounts payable $ 1 ,169,666 $ 390,884 $ - $
Accrued payroll 1 ,600,646 15,260 - 5,359
Deposits 689,785 65,408 - -
Due to other funds (Note 7) - 369, 136 - 6, 192
Deferred compensation (Note 3) - - - -
Claims payable (Note 6) -
Deferred revenue (Note 4) 709,873 3,671 ,145 - -
Accrued interest payable - -
Certificates of participation
(Note 10) - - - -
Bonds payable (Notes 9 and 10) - _
Other long-term debt (Notes 9 and 10) - - - -
Compensated absences payable
(Notes 1f and 9) - - - -
TOTAL LIABILITIES 49169,970 4,511 ,833 - 11 ,551
FUND EQUITY:
Contributed capital - _ _ _
Investment in general fixed assets - - - -
Retained earnings: L
Reserved (Note 12)
Unreserved (deficits)
Fund balances:
Reserved (Note 12) 6,070,789 2,581 ,258 5,892,855 889,322
Unreserved: r
Designated (Note .12) - 1 , 150,431 - -
Undesignated 5,575,288 11 ,175.259 - 6,584 L
TOTAL FUND EQUITY 11 ,646,077 14,906,948 508929855 8951906
TOTAL LIABILITIES AND l
FUND EQUITY $15,816,047 $19,418,781 $5,892,855 $907,457
I r
See accountants' report and notes to financial statements.
-2-
� - • _ • SCHEDULE A-1
1 Account-Groups
Proprietary Fund Types Fiduciary General General Totals
Internal Fund Type Fixed Long-Term (Memorandum Only)
' Enterprise Service Agency Assets Debt 1985 1984
$ 6,231 ,382 $5,384,402 $5,557,056 $ - $ - $ 42,366,651 $ 35,871 ,161
' 1,459,483 - - - - 7,846,335 10,858, 162
482:882 610,980
542,406 8,498 - - 1 ,886,403 i,o66,724
' 52,915 32,495 _ _ _ 358,693 457,249
22,208 6,690,523 5,1.11,016
- - - - 1,335,655 1,603,713
' - _ - - - - _ 148,906 196,567
238,377 174,981 623,295 .1, 157,986
35,662,768 221 ,327 66,617,843 - 102,501 ,938 94,635,912
' - - - 5,892,855 5,892,855 739,664
19,516,496 19,516,496 28,977,968
$44,209,539 $5,646,722 $5,732,037 $66,617,843 $25,409,351 $189,650,632 $181 ,287, 102
41 2 08 - - 2 640 2,388,792
$ 9 ,559 $ 7 ,9 $ $ $ $ ,799 $
409199 24,807 - - - 1,686,271 1,604,250
781 ,110 - _ = - 1,470,521 1,521 ,437
3219000 5,994, 195 6,690,523 59111 ,016
- 5,703,237 - - 5,703,237 4,371 ,867
5,186,000 - - - - 5,186,000 4,467,000
'. 22,208 - - - - 4,403,226 3,601 ,974
90,405 - - - - 90,405 42,631
1 4,600,000 = _ _ - 4,600,000 4,600,000
1,111 ,000 16,035,000 17,146,000 . 18,291 ,000
2,171 ,229 - 28,800 - 421 ,231 2,621 ,2W 2,550,294
129,705 - - - 2,958,925 3,088,630 2,826,507
10,208,415 5,283,715 5,732,037 - 25,409,351 55,326,872 51,376,768
32,935,226 2,000,000- - - 34,935,226 30,805,204
- - - - - 66,617,843- - 66,6179843 63,045,290
' 570,449 - - - - 570,449 448,479
495,449 (1 ,636,993) - - - (1 ,141 ,544) 637,606
15,434,224 15,927,600
1, 150,431 170,474
16,757, 131 18,875,681
34,001 , 124 363,007 66,617,843 134,323,760 129,910,331
' $44,209,539 $5,646,722 $5,732,037 $66,617,843 $25,409,351 $189,650,632 $181 ,287, 102
-3- -
CITY OF HUNTINGTON BEACH --
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
For the year ended June 30, 1985
General
Fund
REVENUES: L
Property taxes $ 17,073,983
Other taxes 25,923,113
Licenses and permits 3,591 ,493 l
Fines, •forfeitures and penalties 2,093,975
From use of money and property 3,899,972
From other agencies 5,953,540
Charges for current services 2,202, 185
Other 364,156
TOTAL REVENUES 61 ,102,417
EXPENDITURES:
City. Council 128,635
City Administrator 633,514 .
City Treasurer 267,882
City Attorney 806,146
City Clerk 194834
Administrative services 2,558:796
Development services 1 ,759,542
Fire 9,469458
Police 17,114:924
Housing and community development -
Community services 5, 169,351 F
Public works 13,625,016
Debt service, principal -
Debt service, interest -
Non-departmental 4,867,215
Capital outlay 3,098,315
TOTAL EXPENDITURES 59,693,628
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1 ,408,789
OTHER FINANCING SOURCES (USES): t
Operating transfers in 2,795,907 r
Advances from General Fund I
Proceeds from Certificates of Participation -
Operating transfers out (1 ,423,950)
TOTAL OTHER FINANCING SOURCES (USES) 1 ,371 ,957 I�
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES 2,780,746 r
FUND BALANCE - BEGINNING OF THE YEAR 10,382,894
Prior period adjustments (Note 15) -
Residual equity transfers in (Note 7) 682,437
Residual equity transfers out (Note 7) (2,200,000)
FUND BALANCE - END OF YEAR $ 11 ,646,077 r
L
See accountants' report and notes to financial statements.
-4- I�
• • SCHEDULE A-2
' Debt Capital Totals
. Special P
Revenue Service Projects (Memorandum Only)
' Funds Funds Funds 1985 1984
$ - $ 549,312 $ 15,026 $ 17,638,321 $ 16,935,465
25,923, 113 22,878,559
2,371 ,918 - - 5,963,411 51099,573
_ _ _ 2,093,975 1 ,923, 143
1 ,240,579 624,810 130,046 5,895,407 6, 177,364
' 6,934,804 _ _ 12,888,344 9,937,325
59,239 2,261 ,424 2,009,901
- 364,156 1 ,052,519
10,606,540 1, 174, 122 145,072 73,028,151 66,013,849
- 128,635 111 ,048
' 97,452 e _ 730,966 480,390
267,882 141 ,158
806, 146 729,693
194,834 163,473
2,558,796 2,362,261
1 ,759,542 1 ,632,865
24,376 - - 9,493,834 8,568,81.2
' 7,718 _ - 17, 122,642 15,601 ,080
661 ,965 304,419 966,384 685,654
117,597 - - 5,286,948 5,070, 115
269494 - _ 13,651 ,510 12,528,418
960,000 960,000 860,000
936, 104 - 936, 104 970,149
4,867,215 3,740,992
4,718,986 - 561418 7,873,719 8,620,833
5,654,588 1 ,896, 104 360,837 67,605, 157 62,266,941
4,951 ,952 (721 ,982) (215,765) 5,422,994 3,746,908
628,309 1,468,575 - 4,892,791 5,428,758
_ - 237,336 237,336 -
4,287,620
(3,424,216) - (44,625) (4,892,791 ) (5,428,758)
(2,795,907) 1,468,575 192,711 237,336 4,287,620
2, 156,045 746,593 (23,054) 5,660,330 8,034,528
' 16,-011 ,365 5,859,901 6, 180,057 38,434,217 30,805,225
(3,460,462) - - (3,460,462) (405,536)
200,000 - 882,437 -
- (713,639) (5,261,097) (8, 174,736) -
$ 14,906,948 $ 5,892,855 $ 895,906 $ 33,341 ,786 $ 38,4342217
-5-
r-
0
i
CITY OF HUNTINGTON BEACH L
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND r
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES
For the year ended June 30, 1985 r
L.
General Fund
Variance -
Favorable L
Budget Actual (Unfavorable)
REVENUES: F
Property taxes $ 18,517,546 $ 17,073,983 $ (1 ,443,563)
Other taxes 25,266,000 25,923, 113 657, 113
Licenses and permits 3,377,000 3,591 ,493 214,493
Fines, forfeitures and penalties 1 ,966,500 2,093,975 127,475
From use of money and property 3,690,700 3,899,972 209,272 t-.
From other agencies 1 ,660, 100 5,953,540 4,293,440
Charges for current services 2,085,400 2,202: 185 116,785
Other 553,400 364,156 (189,244)
TOTAL REVENUES 57, 116,646 61 , 102,417 3,985,771
EXPENDITURES:
City Council 127,436 128,635 (1 ,199)
City Administrator 649,060 633,514 15,546
City Treasurer 289,165 267,882 21 ,283 r
City Attorney 885,974 806,146 79,828
City Clerk 220, 180 194,834 25,346
Administrative services 2,727,651 2,558,796 168,855 r
Development services 1,805,885 1 ,759,542 46,343
Fire 9,484,864 9,469,458 15,406
Police 17,471 ,286 17, 114,924 356,362
Community services 5,479,462 5, 169,351 310, 111 r
Public works 14,887,685 13,625,016 1 ,262,669
Debt service, principal - - -
Debt service, interest - - -
Housing and community services - - -
Non-departmental 3,694,251 4,867,215 (1 ,172,964)
Capital outlay 4,829,011 3,098,315 1 ,730,696
r
TOTAL EXPENDITURES 62,551 ,910 59,693,628 2,858,282 j
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,435,264) 1 ,408,789 6,844,053 r
OTHER FINANCING SOURCES (USES):
Operating transfers in 2,598,500 2,795,907 197,407
Operating transfers out (4,423,950) (1 ,423,950) -
TOTAL OTHER FINANCING I
SOURCES (USES) 1 , 174,550 1 ,371 ,957 197,407
r
EXCESS OF REVENUES AND OTHER SOURCES OVER
(UNDER) EXPENDITURES AND OTHER USES (4,260,714) 2,780,746 7,041 ,460
FUND BALANCES - BEGINNING OF THE YEAR 10,382,894 10,382,894 -
Prior period adjustments (Note 15) - - -
Residual equity transfers in (Note 7) - 682,437 682,437
Residual equity transfers out (Note 7) - (2,200,000) (2,200,000)
FUND BALANCES - END OF YEAR $ 6,122, 180 $ 11 ,646,077 $ 51523,897
i
See accountants' report and notes to financial statements. i
-6-
• SCHEDULE A-3
Special Revenue Funds Debt Service Funds
Variance - Variance -
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ $ $ _ $ 473,000 $ 549,312 $ 76,312
2,280,000 2,371 ,918 91 ,918 - -.
' 600,000 1 ,240,579.. 640,579 22,000 624,810 602,810
6,568,000 6,934,804 366,804
285,000 59,239 (225,761 ) - - -
9,733,000 10,606,540 873,540 495,000 1 ,174,122 679, 122
115,636 97,452 18, 184
28,701 24,376 4.325
18,000 - 7,718 10,282 - - -
168,959 117,597 51 ,362
' 27,600 26,494 1 , 106 - -
960,000 960,000
- 942,842 936, 104 6,738
207,878 661 ,965 (454,087) - - -
14,799, 106 4,718,986 10,080, 120 - - -
15,365,880. 5,654,588 9,711 ,292 1 ,902,842 1 ,896, 104 6,738
(5,'632,880) 4,951 ,952 (10,584,832) (1 ,407,842) (721 ,982). 685,860
628,309 628,309 1 ,423,950 1 ,468,575 44,625
(2,729,000) (3,424,216) (695,216) - - -
' (2,729,000) (2,795,907) (66,907) 1 ,423,950 1 ,468,575 44,625
' (8,361 ,880) 2, 156,045 10,517,925 16, 108 746,593 730,485
16,011 ,365 16,011,365 5,859,901 5,859,901 -
(3,460,462) (3,460,462) - -
- 200,000 200,000 _ - -
(713,639) (713,639)
' $ 7,649,485 $ 14,906,948 $ - 7,257,463 $ 5,876,009 $ 5,892,855 $ 16,846
' -7
SCHEDULE A-3
0 CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND r
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED) I
L
.GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES
For the year ended June 30, 1985 r
L_
Totals
Variance - r
Favorable
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 18,990,546 $ 17,623,295 $ (1 ,367,25.1 ) r
Other taxes 27,557,000 28,354,994 797,994
Licenses and permits 5,657,000 5,963,411 306,411
Fines, forfeitures and penalties 1 ,966,500 2,093,975 127475 F
From use of money and property 4,312,700 5,765,361 1 ,452:661 l_
From other agencies 5,937,100 10,456,463 4,519,363
Charges for current services 2,370,400 2,261 ,424 (1081976)
Other 553,400 364,156 (189,244)
TOTAL REVENUES 67,344,646 72,883,079 5,5389433
EXPENDITURES: F
City Council 127,436 128,635 (1 , 199) IL
City Administrator 764,696 730,966 33,730
City Treasurer . 289,165 267,882 21 ,283
City Attorney 885,974 806, 146 79,828
City Clerk 220,180 194,834 25,346
Administrative services 2,727,651 2,558,796 168,855
Development services 1 ,824, 185 1 ,773,517 50,668 4
Fire 9,513,565 9,493,834 19,731 L
Police 17,489,286 17, 122,642 366,644
Community services 5,648,421 5,286,948 361 ,473
Public works 14,915,285 13,651 ,510 1 ,263,775
Debt service, principal 960,000 960,000 -
Debt service, interest -942,842 936,104 6,738 r
Housing and community services 207,878 661 ,965 (454,087)
Non-departmental 3,694,251 4,867,215 (1 , 172,964)
Capital outlay 19,609,817 7,803,326 11 ,806,491
TOTAL EXPENDITURES 79,820,632 67,244,320 12,576,312 r
EXCESS OF REVENUES OVER l
(UNDER) EXPENDITURES (12,475,986) 5-,638,759 18, 114,745
r
OTHER FINANCING SOURCES (USES):
Operating transfers in 4,022,450 4,892,791 870,341
Operating transfers out (4,152,950) (4,848, 166) (695,216) r
TOTAL OTHER FINANCING 1
L
SOURCES (USES) (130,500) 44,625 175, 125
EXCESS OF REVENUES AND OTHER SOURCES OVER
(UNDER) EXPENDITURES AND OTHER USES (12,606,486) 5,683,384 18,289,870 i.
FUND BALANCES - BEGINNING OF THE YEAR 32,254, 160 32,254, 160 -
Prior period adjustment (Note 15) - (3,460,462) (3,460,462) `
Residual equity transfers in (Note 7) - 882,437 882,437
Residual equity transfers out (Note 7) - (2,913,639) (2,913,639)
FUND BALANCES - END OF YEAR $ 19,647,674 $ 32,445,880 $ 12,798,206
L
See accountants' report and notes to financial statements.
-8- �.
CITY OF HUNTINGTON BEAC H SCHEDULE A-4
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
' IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
For the year ended June 30, 1985
Totals
Internal (Memorandum Only)
Enterprise Service 1985 1984
OPERATING REVENUES: -
Charges for services $ - $ 3,930, 147 $ 3,930, 147 $ 2,397,964
Water sales 7,310,579 7,310,579 6, 168, 162
Rentals 377,950 - 377,950 188,311
Other 197,942 - 197,942 335,321
TOTAL OPERATING REVENUES 7,886,471 3,930, 147 . 11 ,816,618 9,089,758
' OPERATING EXPENSES
Water purchases 1 ,736,541 - 1 ,736,541 948,960
Pumping 2,322,513 - 2,322,513 2,089,518
Water treatment 41 ,216 = 41 ,216 33,834
Transmission and distribution 1 ,377,037 1 ,377,037 1 ,568,539
Administrative and general 1 ,238, 125 1 ,374, 151 2,612,276 1 ,745,756
' Contribution to general fund
in lieu of taxes 1 ,097, 165 1 ,097, 165 941 ,641
Workers compensation claims - 1 ,335, 139 1 ,335, 139 1 ,934,670
' Employee medical claims = 1 ,780,428 1 ,780,428 1 ,357,464
Liability claims 977,958 977,958 925,539
Depreciation (Note 1 ) 1 ,230,361 24,012 1 ,254,373 1 ,228,619
' TOTAL OPERATING EXPENSES 9,042,958 5,491 ,688 . 14,534,646 12,774,540
OPERATING LOSS (1 , 156,487) (1 ,561 ,541 ) (2,718,028) (3,684,782) '
NON-OPERATING REVENUES (EXPENSES):
Interest income 653,771 590,601 1 ,244,372 990,508
Interest expense (183,524) - (183,524) (217.,540)
L TOTAL NON-OPERATING
REVENUES (EXPENSES) 470,247 590,601 1 ,060,848 772,968
NET (LOSS) (686,240) (970,940) (1 ,657, 180) (2,911 ,814)
' RETAINED. EARNINGS (DEFICIT) -
BEGINNING OF YEAR 1,752, 138 (666,053) 1 ,086,085 3,997,899
RETAINED EARNINGS (DEFICIT) -
END OF YEAR $ 1 ,065,898 $(1 ,636,993)$ (571 ,095)$ 1 ,086,085
t
' See accountants' report and notes to financial statemets.
-9-
SCHEDULE A-5 r
i` CITY OF HUNTINGTON BEACn
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - r
ALL PROPRIETARY FUND TYPES
For the year ended June 30, 1985 r
Totals
Internal (Memorandum Only)
Enterprise Service 1985 1984
SOURCES OF WORKING CAPITAL: r
Operations:
Net loss $ (686,240)$ (970,940)$(1 ,657,180)$(2, 137,928)
Items not requiring working
capital: r
Depreciaton 1,230,361 24,012 1 ,2541373 1 ,564,689
Working capital provided (used)
by operations 544, 121 (946,928) (402,807) (573,239)
Increase in self-insurance claims
payable - 719,000 719,000 1 , 115,781
Contributions 2, 130,022 2,000,000 4, 130,022 816,327 r
Sale of Certificates of Participation 4,600,000 - 4,600,000 -
TOTAL SOURCES OF WORKING CAPITAL 7,274, 143 1 ,772,072 9,046.,215 1 ,358,869
USES OF WORKING CAPITAL: r
Increase in property, plant and
i
equipment 5,302,507 245,339 5,547,846 1 ,061 ,442
Increase in restricted assets 839,129 - 839, 129 482,670 r
Decrease in long-term debt 226,570 - 226,570 893,021
Decrease in compensated absences
payable 802 - 802 -
TOTAL USES OF WORKING CAPITAL 6,369,008 245,339 6,614,347 2,437, 133
i
NET INCREASE IN WORKING CAPITAL $ 905, 135 $ 1 ,526,733 $ 2,431 ,868 $0 ,078,264)
ELEMENTS OF NET INCREASE (DECREASE)
IN WORKING CAPITAL:
Cash and investments $ 1 ,641 ,866 $ 1 ,486,532 $ 3, 128,398 $0 ,366,211 )
Interest receivable 5,957 (5,844) 113 - r
Accounts receivable 64,698 7,496 72, 194 131 ,751
Due from other funds 22,208 (25,427) (3,219) 335,931
Prepaid expenses and other assets 206, 108 - 206, 108 -
Accounts payable and accrued
payroll . (319,438) 63,976 (255,462) (142,227)
Interest payable (35,899) - (35,899) 3,694
Deferred income (22,208) - (22,208) -
Due to other funds (320,045) - (320,045) -
Due to other agencies (90,082) - (90,082) -
Deposits (244,482) - (244,482) (36,756)
Current portion of long-term debt (3,548) - (3,548) (4,446)
NET INCREASE (DECREASE) IN
WORKING CAPITAL $ 905, 135 $ 1 ,526,733 $ 2,431 ,868 $0 ,078,264)
See accountants' report and notes to financial statements.
-10-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
' June 30, 1985
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Description of Fund Types and Account Groups:
The City of Huntington Beach (City) accounts for its financial position
and operations in accordance with generally accepted accounting
principles applicable to governmental units. Accordingly, the City
uses several funds and account groups. A fund or account group is an
accounting entity with a self—balancing set of accounts established to
' record the financial position and results of operations of a specific
governmental activity. The City maintains the following fund types and
account groups:
' Governmental Fund Types:
The General Fund is used to account for all financial resources
' except those required to be accounted for in another fund.
Special Revenue Funds are used to account for the proceeds of
specific revenue sources that are legally restricted to expenditures
for specified purposes.
Debt Service Funds are used to account for the accumulation of
' resources for, and the payment of, general and redevelopment long—term
debt principal and interest.
' Capital Projects Funds are used to account for financial resources to
be used for the acquisition or construction of major capital
facilities.
Proprietary Fund Types:
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.
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 Fund Type:
Agency Funds are used to account for assets held by the City as an
agent for individuals or. private organizations.
See accountants' report.
—11—
n r-
/ CITY OF HUNTINGTON BEACH'" .
NOTES TO FINANCIAL STATEMENTS r
(Continued)
June 30, 1985 r
1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
r
a. Description of Fund Types and Account Groups (Continued) :
Account Groups: F
i
The General Fixed Assets Account Group is used to maintain control
and cost information on capital assets owned by the City, other than r
those of the. proprietary fund types. G
The General Long-Term Debt Account Group is used to account for the
unmatured long-term liabilities that will be financed from governmental
funds.
b. Basis of Accounting: r
Governmental fund types and agency 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 r
subventions, property taxes, interest, and certain charges for current
services including unbilled receivables in enterprise funds. Revenues
which are not considered susceptible to accrual include certain
licenses, permits, fines, forfeitures and penalties. Expenditures, i
other than principal and interest on long-term debt and employee
compensated absences (vacation and sick leave) , are recorded when the r
liability is incurred. Proprietary fund types are accounted for on the
accrual basis. L_
c. Investments:
Investments are stated at cost, which approximates market value.
r
d. Inventories:
Inventories, which consist of materials and supplies, are stated at r
weighted-average cost.
e. Property and equipment:
r
I
Acquisitions of property and equipment are recorded as expenditures in L
governmental fund types at the time of purchase. These assets are
capitalized at cost in the General Fixed Assets Account Group . f
Expenditures for infrastructure (roads, curbs, sidewalks, sewers, etc.)
normally are not capitalized as such assets are immovable and generally r
of value only to the City. No depreciation is provided for assets
capitalized in the General Fixed Assets Account Group.
r
See accountants' report.
-12- r
i
O
' CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
1 . SUMMARY OF SIGNIFICANT ACCUNTING POLICIES (CONTINUED):
' e. Property and equipment (continued) :
Property and equipment acquired by proprietary fund types are
capitalized at cost at 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 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. .
1 Category Useful Life
' Production, pumping, tram smission
and distribution plant 10-50 years
General plant 20-50 years
Transportation equipment 5-30 years
' f. Employee Compensated Absences:
For the governmental fund types, it is the policy of the City to record
the cost of vacation and sick leave when paid . At June 30, 1985 the
unfunded liability for vacation and. sick leave accumulated by the
City' s governmental fund employees totalled $2,958,925. The City has-
recorded this amount in the General Long-Term Debt Account Group
under the assumption that such amounts will be paid with future
financial resources, In the proprietary funds, the liability of
' $129,705 has been recorded.
g. Budgetary Accounting:
1 Annual budgets adopted by the City Council at the beginning of each
fiscal year provide for the general operations of the City. This
' "appropriated budget" (as defined by National Council on Governmental
Accounting (NC GA) Interpretation 10) covers substatially all City
expenditures, except for the Capital Projects Funds as these funds are
budgeted on a long-term project basis instead of an annual basis.
' Revenues for the Special Revenue Funds are budgeted by entitlements and
grants; expenditures and transfers are budgeted based upon available
fund resources.
Budgets for the General , Special Revenue and Debt Service Funds are
adopted on a basis substantially consistent with generally accepted
- accounting principles. There are no significant non-budgeted
expenditures. Actual expenditures may not exceed budgeted
appropriations at the fund level.
See accountants' report.
—13—
r
CITY OF HUNTINGTON BEACH
o
NOTES TO FINANCIAL STATEMENTS f
(Continued)
June 30, 1985
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Budgetary Accounting (Continued) : L
The resolution approving the budget authorizes the Chief of F
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 reappr,opriation 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 IF
during the year as deemed necessary. The adjustments are included in l
the budget amounts in the accompanying combined financial
statements. r
i
h. Property Tax Revenue: t
Property tax in California is levied in accordance with Article 13A of
the State Constitution at one percent of county-wide assesed
valuations. This one percent is allocated pursuant to state law to the
appropriate units of local government.
Property tax revenue is recognized in the fiscal year for which taxes
have been levied, provided that the revenue is collected in the current r
period or will be collected within 60 days thereafter. L
The property tax calendar is as follows:
Lien Date: March 1 l
Levy Date: July 1
Due Date: First Installment — November 10
Second Installment — February 10 lL
Delinquent Date: First Installment — December 11
Second Installment — April 11
Taxes are collected by Orange County, and are remitted to the City
periodically. . (Dates and percentages may vary slightly from year to
r
year.) ;
i
November 30 5%
December 19 20%
December 28 20%
February 1 Balance of First Installment
March 28 5%
April 26 34%
July 26 Balance of Second Installment
f
See accountants' report. �
—14— r
i
•CITY OF HUNTINGTON BEACH •
NOTES TO FINANCIAL STATEMENTS
' (Continued)
June 30, .1985
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
h. Property Tax Revenue (Continued) :
Tax Increment:
' Under provisions of the California Health and Safety Code and the
Redevelopment Plan, taxes levied by any taxing agency on all taxable
' property in the redevelopment project area are divided between the
Redevelopment Agency and the various taxing agencies:
An amount equal to the current tax rates applied to the assessed
1 valuation (within the project area), prior to the adoption of the
Redevelopment Plan is paid into the funds of the respective taxing
agencies. The increment of taxes received over and above that amount
' are remitted 80% to the Debt Service Fund of the Redevelopment Agency
and 20% to the Low Income Housing Fund.
' i. Capitalized Interest:
Interest expense incurred , net of interest earned on unused proceeds
from Certificates of Participation, totalling $185 , 000 has been
capitalized as part of the cost of construction in 'the Emerald Cove
Housing Fund (an Enterprise Fund) .
' J. Total Columns on Combined Financial Statements:
The combined financial statements inlude total columns which aggregate
the financial statements of the various fund types and account groups .
' The columns are designated "memorandum only" because the- totals are not
comparable to a consolidation in that interfund transactions are not
eliminated.
' k. - Measurement Focus:
' All governmental funds are accounted for on a spending or "financial
flow" measurement focus. This means that generally only current assets
and current liabilities are included on their balance sheets, with the.
t exception that the noncurrent portion of long—term receivables due to
governmental funds are reported on their balance sheets, offset by fund
balance reserve accounts . Statements of revenue , expenditures and
changes in fund balances for governmental funds generally present
increases ( revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
' See accountants' report.
—15—
• CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1985
1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. Measurement Focus (Continued) :
All proprietary funds are accounted for on a cost of services or
"capital maintenance" measurement focus. This means that all assets '
and liabilities (whether current or noncurrent) associated with the
activity are included on the balance sheets. Their reported fund
equity presents total net assets . Proprietary fund operating '
statements present increases ( revenues) and decreases ( expenses) in
total net assets.
2. DESCRIPTION OF THE REPORTING ENTITY: ,
This comprehensive annual financial report incorporates NCGA Statement 3. '
One of the criteria for inclusion of an entity in the report is oversight
responsibility. The following separate legal entities under the oversight
responsibility of the City are included with the City as components in this
report: Parking Authority of the City of Huntington Beach, Huntington '
Beach Public Facilities Corporaton, Redevelopment Agency of the City of
Huntington Beach, and the West Orange County Water Board.
All components of the reporting entity report on a July 1 through June 30
fiscal year.
3. DEFERRED COMPENSATION:
Full-time City employees have the option of deferring a portion of their
earnings. The deferred amounts are primarily invested in savings accunts ,
and certificates of deposit. The City retains title to the funds until
withdrawal by the employee, which may take place at the employee' s
termination or any later date. The amount of deferred compensation payable '
at June 30, 1985 was $5,703,237.
4. DEFERRED REVENUE:
Certain revenues in the governmental and enterprise funds due from the ,
redevelopment agency have been deferred until received from the agency.
These amounts are as follows: '
General Fund:
Sales price of the Huntington Breakers '
apartment site $ 405,400
Interest on amount due on sale of
Huntington Breakers site accruing at
10% per annum 81 ,216
Development fees 223,257
Total General Fund 709,873 ,
See accountants' report.
-16- '
' CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
' (Continued)
June 30, 1985
4. DEFERRED REVENUE (CONTINUED):
tSpecial Revenue Funds:
Park Acquisition and Development Fund:
Sales price of the Emerald Cove
' and adjacent site $ 2,750,000
Interest on amount due on sale of
Emerald Cove and adjacent site 550,000
' Development fees 247,664
Total Park Acquisition and
Development Fund 3,547,664
' Sewer Fund:
Development fees 51 ,083
Planned Local Drainage Fund:
Development fees 72,398
Total Special Revenue Funds 3,671 , 145
Enterprise Fund:
' Development Fees 22,208
Total Deferred Revenue $ 4,403,226
' 5. RETIREMENT PLAN:
' The City is a participant in the Public Employees Retirement System (PERS)
of the State of California covering all the City' s permanent employees.
Contributions to the system are based on rates set by PERS based on certain
actuarial assumptions, such as length of employment, estimated salary
rates, mortality rates, projected retirement benefits and . other factors.
Pension costs are recorded as expenditures when paid by month;
contributions to PERS. The total pension expense for the year ended June
' 30, 1985 was $6,870,908, of which approximately $1 ,622,900 was for prior
service costs. Actuarial information related to the plan was not available
from PERS for June 30, 1985. However, at June 30, 1984, the plan net assets
' available for benefits totaled $66,237,806, and the present value of the
City's. unfunded obligation for prior service costs totaled $22,614,924,
which amount will be funded through the year 2000 from established
contribution rates. The acturial present value of vested and non—vested
' accumulated plan benefits is not determined under the PERS system of
accounting.
6. SELF INSURANCE PLANS:
The City self—insures for health, workers' compensation and genera 1
liability claims.
' See accountants' report.
—17—
r
CITY OF HUNTINGTON BEACb.,.
\ i
NOTES TO FINANCIAL STATEMENTS
(Continued) r
June 30, 1985
r
6. SELF INSURANCE PLANS (CONTINUED): I
The City is self-insured for the first $75 ,000 of each health claim ,
$150,000 of each workers' compensation claim and for the first $100,000 of. r
each general liability claim. Claims in excess of self-insurance limits
are covered by insurance up to $1 ,000,000 for health, $30,000,000 for
liability and the statutory limit for workers' compensation. It is the
City' s policy to charge to expense amounts of claims which are reasonably j
determinable and where the existence of the City' s liability is probable.
r
Charges are made by the Self-Insurance Fund to other City funds based
upon estimated insurance policy costs, self-insurance losses and other
operating expenses. Transfers from the General Fund are periodically made
to cover deficits caused from inadequate charges to the other funds. r
I
"
7. INTERFUND TRANSACTIONS:
r-
a. Individual interfund receivables and payables were as follows at June
30, 1985:
r
Due from Due to
Other Funds Other Funds
General Fund $ 1 ,926,495 $ -
Special Revenue Funds:
Sewer 51 ,083 -
Planned Local Drainage 72,398 -
Federal Revenue Sharing - 369, 136 r
Other Grants 1 ,064,483 -
Park Aquisition and Development 3,547,664
Capital Projects Funds:
Low Income Housing 6, 192
Redevelopment Agency 6,192
Enterprise Fund:
Water 22,208 r
Emerald Cove Housing 321 ,000
Long-term Debt Account Group
(See Note 9) - 5,994,195
III $ 6,690,523 $ 6,690,523
r
b. Residual Equity Transfers:
In the prior year Certificates of Participation (See Note 10) were
issued in the amount of $4 ,600,000 which was classified as General r
f Long-term debt. The proceeds were retained in a Debt Service Fund and
a Capital Projects Fund . During the year the Emerald Cove Senior
Citizens Housing Project began operations as a City enterprise
activity and the following related assets and liabilities were
l
transferred to that fund:
I r
See accountants' report.
-18-
r
C
• CITY OF HUNTINGTON BEACH •
NOTES TO FINANCIAL STATEMENTS
' (Continued)
June 30, 1985
7. INTERFUND TRANSACTIONS (CONTINUED):
Transferred From
Debt Capital
Service Projects Long—term Capitalized
Fund Fund -Debt Costs Total
Cash $ 713,639 $ 3,783,570 $ — $ — $ 4,497,209
Interest — —
receivable — 12,278 12,278
Prepaid expenses — - — 126,500 126,500
Note receivable — 823,000 — — 823,000
' Construction in —
Process — — 314,201 314,201
Accounts payable (40, 188) — — (40, 188)
' Due to other — —
funds — (310,000) (310,000)
Certificates of
participation payable — — (4,600,000) (4,600,000)
$ 713,639 $ 4,578,660 $(4,910,000)$ 440,701 $ 823,000
Capitalized costs represent amount previously expended in the Redevelopment
Agency Fund. The net assets transferred, as shown above, were recorded as
' contributed capital in the Emerald Cove Housing Fund and as residual equity
transfers in the debt service and Capital Projects Funds:
' Other residual equity transfers were made as follows:
Transferred to
' Flood Equipment
Transferred From General Control Replacement
Special Capital Outlay
1 (discontinued) $ 682,439 $ — $ —
General Fund 200,000 2,000,000
See accountants' report.
r
CITY OF HUNTINGTON BEACH � -
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
l
8. SEGMENT INFORMATION FOR ENTERPRISE FUNDS:
r
I
The City has three enterprise funds which are run on the same basis as
commercial enterprises — Water Utility, Meadowlark Golf Course and Emerald
Cove Housing. Certain key financial data for the year ended June 30, 1985
for those funds was as follows:
Emerald
Water Meadowlark Cove
Utility Golf Course Housing Total t-
Operating revenues $ 7,508,521 $ 209,425 $ 168,525 $ 7,886,471
I
Depreciation expense $ 1 ,189,419 $ 40,942 $ — $ 1 ,230,361
r
Operating income
(loss) $ (1 ,368,003)$ 168,483 $ 43,033 $ (1 ,156,487)
r
Net income (loss) $ (882,781 )$ 75,826 $ 120,715 $ (686,240) L.
Capital contributions
received $ 8,922 $ — $ 2, 121 , 100 $ 2, 130,022
Acquisition of fixed
assets, net $ 236,399 $ — $ 5,320,507 $ 5,556,906
Net working capital $ 3,258,207 $ 272,955 $ 887, 121 $ 4,418,283
Total assets $ 33,350,019 $ 3,609,804 $ 7, 134,553 $ 44,094,376
Long—term obligations,
net of current
portion $ 1 ,273,312 $ 1 ,781 ,261 $ 494849837 $ ' 7,539,410 r
Total equity $ 29,996,536 $ 1 ,762,773 $ 2,241 ,815 $ 34,001 ,124
i
I
See accountants' report.
—20— r
r
I t_
WITY OF HUNTINGTON BEACH •
1
.NOTES TO FINANCIAL STATEMENTS
(Continued)
June 301 1985
9. GENERAL LONG-TERM DEBT:
The following is a summary of changes in general long-term debt for the
year ended June 30, 1985:
Balance Balance
' Outstanding Outstanding
June 30, Transfers/ June 30,
1984 Additions Retirements 1985
1970 Park Bonds $ 3,695,000 $ - $ 2709000 $ 3,425,000
Public Facilities
Corporation Lease-
hold Mortgage Bonds 12,000,000 - 560,000 11,440,000
Parking Authority Revenue Bonds 1,325,00E - 155,000 1, 170,000
California Coastal
Conservancy Note
tPayable - 208,900 - 208,900
Compensated absences 2,696,000 262,925 - 2,958,,925
Certificates of
' participation 4,600,000 - 4,600,000 -
Equipment leases 316,043 103,712 212,331
Due to Other Funds 5,085,589 1,218,606 3101000 5,994, 195
Totals $ 29,717,632 $ 1 ,690,431 $ 5,998,712 $ 25,409,351
a. 1970 Park Bonds:
On March 1, 1970 $6,000,000 of general obligation bonds were sold to
acquire and construct park facilities. Principal matures annually on
' March 1 and bears interest at 6% per annum, due semi-annually.
The annual debt service requirements to amortize the bonds outstanding
' at June 30, 1985 was as follows:
Year
Ending
' June 30, Principal Interest Total
1986 $ 260,000 $ 205,500 $ 465,50E
1987 280,000 189,900 b69,900
' 1988 295,000 173, 100 468, 100
1989 310,000 155,400 465,400
1990 305,000 136,800 441 ,800
1991 350,000 118,500 468,500
1992 370,000 97,500 467,500
1993 395,000 75,300 470,300
1994 415,000 51 ,600 466,600
' 1995 445,000 26,700 471 ,700
$ 3,425,000 $ 1 ,230,300 $ 4,655,300
See accountants' report.
-21-
r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS r
(Continued)
i_
June 30, 1985 r
i
9. GENERAL LONG-TERM DEBT (CONTINUED):
r
b. Public Facilities Corporation Leasehold Mortgage Bonds:
On January 15, 1972 $11 , 100,000 of Leasehold Mortgage Bonds were issued
to construct the Civic Center Complex . The bonds are secured by a
lease between the City and the Corporation whereby the General Fund
annually pays $854,900 to the Corporation. Principal matures annually
on January 15 and bears interest ranging from 5% to 5.5% per annum, r
payable semi-annually. The principal balance outstanding at June 30,
1985 is $7,840,000.
r
On September 1 , 1972 $5,000,000 of leasehold Mortgage Bonds were issued
to construct the Central Library Complex. The bonds are secured by a '
lease between the City and the Corporation whereby the General Fund
annually pays $399,000 to the Corporation. Principal matures annually
on September 1 and bears interest ranging from 5% to 5.9% per annum,
payable semi-annually. The principal balance outstanding at June -30,
1985 is $3,600,000.
The annual debt service requirements to amortize the bonds outstanding
at June 30, 1985 was as follows:
Year
Ending Civic Center Bonds Library Bonds r
June 30, Principal Interest Principal Interest Total
i
1986 $ 400,000 $ 423,225 $ 190,000 $ 192,717 $ 1 ,205,942
1987 430,000 401 ,225 200,000 182,087 1 ,213,312 r
1988 450,000 377,575 210,000 170,812 1 ,208,387
1989 465,000 352,825 230,000 158,712 1 ,206,537
1990 530,000 327,250 240,000 145,667 1 ,242,917
1991 555,000 298, 100 260,000 131 ,667 1 ,244,767
1992 600,000 267,575 270,000 116,827 1 ,254,402
1993 640,000 234,575 290,000 101 ,002 1 ,265,577
1994 675,000 199,375 305,000 83,968 1 ,263,343
1995 725,000 162,250 320,000 66,000 1 ,273,250
1996 775,000 122,375 340,000 47,025 1 ,2849400
1997 830,000 79,750 360,000 28,250 1 ,298,000
1998 765,000 38,250 385,000 9,625 1 ,197,875
$ 7,840,000 $ 3,284,350 $ 3,600,000 $ 1 ,434,359 $ 16, 158,709 e
r
i
See accountants' report.
r
-22-
r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
9. GENERAL LONG-TERM DEBT (CONTINUED) :
c. Parking Authority Revenue Bonds:
On September 1 , 1968 $2, 300,000 of revenue bonds were issued to
construct off street beach parking improvements. The bond indenture
requires that annual debt service be budgeted by the General Fund .
Principal matures annually on September 1 and bears interest at 5 .25%
' per annum, payable semi-annually.
The annual debt-service requirement to amortize the bonds outstanding
at June 30, 1985 was as follows:
Year
Ending
' June 30, Principal Interest Total
1986 $ 110,000 $ 58,400 $ 168,400
1987 115,000 52,631 167,631
' 1988 120,000 46,463 166,643
1989 125,000 40,031 165,031
1990 135,000 33,206 168,026
' 1991 140,000 25,988 165,988
1992 150,000 17,849 167,849
1993 160,000 10,238 170,238
' 1994 115,000 3,019 118,019
$ 1 , 170,000 $ 287,825 $ 1 ,457,825
' d. California Coastal Conservancy Note Payable:
During the year certain repairs were made to a pier which was damaged
by a storm. The California Coastal Conservancy agreed to lend the City
' a portion of the repair costs at an interest rate of 8$ per annum. At
June 30, 1985 the total amount loaned by the conservancy was $208,900.
Annual payments of no less than $22,375 are to be made beginning June
' 1, 1986 to amortize the loan through June 1, 1995.
e. Compensated Absences Payable:
' There is no fixed payment schedule to pay the governmental fund types
outstanding liability for compensated absences earned at June 30, 1985
' of $2,958,925.
f. Equipment Leases:
' The City leases certain equipment under capital leases with terms
ranging through five years. Such equipment (cost of approximately
$500,000) is included in the General Fixed Assets Account Group.
' See accountants' report.
-23-
CITY OF HUNTINGTON BEACH
r
NOTES TO FINANCIAL STATEMENTS r
(Continued)
June 30, 1985
9. GENERAL LONG-TERM DEBT (CONTINUED):
r
f. Equipment Leases (Continued) :
The future minimum lease payments required was as follows:Year ending June 30, 1986 $ 79,398
1987 63,623
1988 63,623 r
1989 38,508
245,152 r
Less amount representing
interest (32,821 )
r
Total future minimum lease
payments $ 212,331
r
g. Due to Other Funds:
i
The Redevelopment Agency has entered into various .transactions with
other funds. Since payment by the Agency will be made from tax
increment revenues in future years, the debt is classified as long—
term.
r
The various transactions are described below:
Sale of land by the Park Acquisition
r
and Development Fund for $2,750,000
plus interest at 10% per annum $ 3,300,000
Sale of land by the General Fund for
$405,400 plus interest at 10% per
annum 486,616
Cash advances from the General Fund 526,486
Cash advances from the Other Grants Fund 1 ,064,483 r
Developers fees payable to various funds
to be subsidized by the Agency 616,610
r
Total Amount Due to Other Funds $ 5,994, 195
r
r
r
See accountants' report.
-24-
r
CITY OF HUNTINGTON BEACH •
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
10. ENTERPRISE LONG-TERM DEBT:
' The following is a summary of changes in Enterprise .Funds long-term debt
for the year ended June 30, 1985:
' Balance Balance
Outstanding Outstanding
June 30, Transfers June 30,
' 1984 In Retirements 1985
1963 Water Revenue
Bonds $ 1 ,271 ,000 $ - $ 160,000 $ 1 , 111 ,000
' San Joaquin Reservoir -
Note Payable 407,226 40,914 366,312
Meadowlark Golf
Course Note Payable 1,827,025 - 22, 108 1 ,804,917
Emerald Cove Housing
Certificates of
Participation - 4,600,000 - 4,600,000
' $ 3,505,251 $ 4,600,000 $ 223,022 $ 7,882,229
a. 1963 Water Revenue Bonds:
On November 1 , 1963. the City sold $3,750 ,000 of revenue .bonds to
construct Water Utility improvements. The bonds are secured by
' revenues of the Water Fund.- Principal matures annually on November 1
and bears interest at 3.5% per annum, payable semi-annually.
The annual debt service requirements to amortize the bonds outstanding
at June 30, 1985 was as follows:
Year Ending
June 30, Principal Interest Total
1986 $ 160,000 $ 36,086 $ 196,086
1987 170,000 30,321 200,321
1988 180,000 24, 186 204, 186
1989 180,000 17,886 197,886
' 1990 190,000 11 ,411 201 ,411
1991 200,000 4,586 204,586
1992 31 ,000 543 31 ,543
$ 1 , 111 ,000 $ 125,019 $ 1 ,236,019
1
See accountant' s report.
-25-
CITY OF HUNTINGTON BEACC� r-
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
r
10. ENTERPRISE LONG-TERM DEBT (CONTINUED):
a. 1963 Water Revenue Bonds (Continued) :
The bond indenture requires that Water Fund revenues equal or exceed
1 .25 times the annual debt service requirement ( principal and
interest) . Net revenues are defined as gross revenues less maintenance
and operation revenues, excluding depreciation. The City has. complied
with this requirement for the year ended June 30, 1985, as shown below:
Gross revenues $ 8,049,892
Operating expenses, excluding
depreciation 7,687, 105
Net revenues $ 362,787
Debt service requirement $ 202,718
Ratio of net revenues to
debt service requirement 1.79
b. San Joaquin Reservoir Note Payable:
In 1979 the City and several other local cities and water districts r
purchased the San Joaquin Reservoir . The City is paying a portion
(13.56%) of the debt service for the 1961 construction of the reservoir
plus operating and improvement costs. In the event of default, the
expenses and/or debt service payments shall be reallocated among the
remaining nondefaulting owners in proportion to the percentage interest
owned as though the party in default did not exist . The City has r
recorded its portion of the reservoir as a fixed asset in the Water
Utility Fund.
r
Year
Ending
June 30, r
1986 $ 57,714
1987 58,018
1988 60,228
1989 60,284 r
1990 60,464
1991 61 ,028
1992 54,984 r
412,720
Less amount representing
interest (46,408)
r
Principal outstanding at
June 30, 1985 $ 366,312
r
See accountants' report.
-26- r
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
' 10. ENTERPRISE LONG-TERM DEBT (CONTINUED):
c. Meadowlark Golf Course Note Payable:
' The City financed its purchase of Meadowlark Golf Course through a long-
term 7% note. The note payable is collateralized by future revenues
and does not represent a general obligation of the City. The City has
leased the golf course 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.
The future required payments on the note are as follows:
Year
Ending
June 30,
1986 $ 150,000
1987 150,000
1988 150,000
1989 150,000
' 1990 150,000
1991 and after 3, 165,703
3,915,703
' Less amount representing
interest (2, 110,786)
Principal outstanding at
June 30, 1985 $ 1 ,804,917
d. Emerald Cove Housing Certificates of Participation:
' In 1984 the Redevelopment Agency sold Certificates of Participation to
finance the construction of a senior citizens housing project. The
certificates bear interest at 9.5% per annum, which is payable semi-
' annually, totalling $437,000 per year. Principal is payable at
maturity on May 1 , 1994.
The land upon which the project is being built was sold to the
Redevelopment. Agency by the City. The City is leasing back the project
and is operating it as an enterprise. Certificate proceeds of $437,000
were withheld to pay the first year' s interest. Thereafter, beginning
June 1 , 1985 lease payments, equal to interest, of $36,417 are payable
monthly. The holders of the certificates have a proportionate interest
in the lease payments to be made by the City. The certificates are
secured by the land and the buildings constructed , an assignment of
rents, and an irrevocable letter of credit issued by a bank . A
discount of $126,500 on the sale of the certificates is being amortized
' through maturity.
See .accountants' report.
' -27-
r
CITY OF HUNTINGTON BEACH'
NOTES TO FINANCIAL STATEMENTS r
(Continued)
June 30, 1985
11 . CHANGES IN GENERAL FIXED ASSETS:
Balance Balance
June 30, 1984 Additions Dispositions June 30, 1985
r
Land $ 23,951 ,207 $ 1 ,920,083 $ - $ 25,871 ,290 .
Buildings 23,247,245 273,499 70, 129 23,450,615
Machinery and
equipment 8,776,797 848,948 295,984 9,329,761
Improvements
other than
buildings 6,634,215 250,410 38,028 6,846,597
Construction in
progress 435,826 907,744 223,990 1 , 1199580
$ 63,045,290 $ 4,200,684 $ 628, 131 $ 66,617,843 r
12. RESERVES AND DESIGNATIONS OF FUND EQUITY:
r
Under the provisions of NCGA Statement 1 , a city may set up "reserves" of
fund equity to segregate fund balances which are not appropriable for
expenditure in future periods, or which are legally set aside for a
specific future use . Fund "designations" also may be established to
indicate tentative plans for financial resource utilization in a future
period. ' Each of the City' s reserves and designations are described below:
Special Debt Capital
General Revenue Service Projects Enterprise
r
Reserves:
Encumbrances $2,275,715 $1 ,516,775 $ - $ - $ -
Inventory 148,906 - - - -
Long-term
receivables 19372,206 1 ,064,483 - -
Continuing
projects - - - 889,322 -
Debt service - - 5,892,855 - 1 ,065,898
City council
projects 25,000 - - - -
Other fund
deficits 2,248,962 - - - -
Designated:
Subsequent year' s
expenditures - 1 , 150,431 - - -
Totals $6,070,789 $3,731 ,689 $5,892,855 $889,322 $1 ,065,898 ,
See accountants' report.
-2 8-
OITY OF HUNTINGTON BEACH •
' NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1985
12. RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED):
a. Reserves for encumbrances are the amounts committed for materials
and services on purchase orders and contracts which are unperformed .
' b. The General Fund supplies inventory of $148,906 is not available to pay
for current expenditures. Therefore, a reserve for that amount has
been established.
c. Reserves for long-term receivables represent amounts which may not be
repaid until future years.
' d. The reserve for continuing projects was established. to provide for long-
term appropriations on projects not yet completed.
e. The reserve for debt service is the amount accumulated in Debt Service
Funds or the amount set aside in another fund in accordance with a bond
indenture or similar covenant.
f. The City Council has reserved $25,000 in the General Fund for certain
special projects.
' g. A reserve has been established in the general fund to cover deficit
fund equities in the Redevelopment Agency Fund (a Capital Projects
1 Fund) of $10,100 and the Self-Insurance Fund (an Internal Service Fund)
of $2,238,862.
h. The designations for subsequent years' expenditures are made to provide
' for deficits budgeted for the subsequent year.
13. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES:
a. At June 30, 1985 the Redevelopment Agency Capital Project Fund has a
deficit fund balance of $10, 100. This deficit will be funded through
' advances from the General Fund. At June 30, 1985 the Self-Insurance
Internal Service Fund has a retained earnings deficit of $2,238,862.
this deficit will be funded in future years through increased charges
to other. funds and/or contributions from the General Fund.
b. The HUD Subsidy Fund (A Special Revenue Fund) had expenditures for the
year ended June 30, 1985 of $26,876. No appropriations were made for
tthis fund
' See accountants' report.
-29-
r
CITY OF HUNTINGTON BEACn
NOTES TO FINANCIAL STATEMENTS r-
(Continued)
j June 30, 1985
14. COMMITMENTS AND CONTINGENCIES:
r
a. 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 r
actions is not expected to have.a significant impact, if any, on the `
financial statements or operations of the City.
r
b. The City established a program in February 1983 to provide funds for
the purchase of home mortgages secured by newly constructed and
existing single-family homes within the City. Under this program, a
total of $40,000,000 of mortgage revenue bonds has been issued ,
$20,000,000 in March, 1983 and $20,000,000 in July, 1984 . The bonds
are payable solely from, and are secured by, a pledge of payments made
on the home mortgages and all funds held by the trustee under the
indenture agreements. The bonds are not an indebtedness of the City
and there exists no 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.
15. PRIOR PERIOD ADJUSTMENTS:
a. During the year ended June 30, 1983 the General Fund sold land to the
Redevelopment Agency for $405,400. The full amount of the sales price r
was evidenced by a note bearing interest at 10% per annum. Through
June 30, 1984 the sales price plus accrued interest of $40,676 was
recorded as revenue. Since the funds were not available to the General r
Fund, the amounts should have been recorded as deferred revenue . The
General Fund fund balance as of June 30, 1984 has been restated to
reflect this change.
r
b. During the year ended June 30 , 1983 the Park Acquisition and
Development Fund ( a Special Revenue Fund) sold land to the
Redevelopment Agency for $2,750,000. The full amount of the sales r
price was evidenced by a note bearing interest at 10% per annum .
Through June 30, 1984 the sales price plus accrued interest of $275,000
was recorded as revenue. Since the funds were not available to the
Park Acquisition and Development Fund , the amounts should have been
recorded as deferred revenue . The Park Acquisition and Development
Fund fund balance as of June 30, 1984 has been restated to reflect this
change.
See accountants' report.
-30-
OITY OF HUNTINGTON BEACH •
NOTES TO-FINANCIAL-STATEMENTS
(Continued)
June 30, 1985
15. PRIOR PERIOD ADJUSTMENTS (CONTINUED) :
c. Rehabilitation loans are made from grant funds received by the HUD,
Subsidy Fund (a Special Revenue Fund) . These loans should have been
expensed in the Grant Fund when made; however , the balance of loans
outstanding at June 30 , 1984 of $435 , 462 was capitalized . An
adjustment has been made as of June 30, 1984 to reduce the loans
receivable account and the fund balance of the Grant Fund by $435,462 .
1 d. At June 30, 1984 the Huntington Beach Public Facilities Corporation
and Parking Authority were reported as Internal Service Funds. Under
that presentation the fixed assets net of depreciation, and the related
bonds and interest payable were reported . In the current year , the
Assets are reported in the General Fixed Asset Account Group and the
bonds payable are reported in the General Long-term Debt Account Group.
' The activities of the Corporation and Authority are now being reported
in debt service and capital projects funds. The cumulative effect on
' Fund Equity, General Fixed Assets and General Long-Term Debt as of
June 30, 1984 due to the change in accounting is as follows:
Public
Facilities Parking
Corporation Authority Total
Fund equity as originally
' reported as Internal
Service Funds $ 3,864,930 $ 931 ,357 $ 4,796,287
Restated as Debt Service
Funds (4,093,913) (1 ,026,324) (5,120,237)
Restated as Capital
Project funds (697,033) (185,247) (882,280)
Cumulative effect of the
Change in Accounting $ (926,01.6)$ (280,214)$(1 ,206,230)
See accountants' report.
-31-
r
CITY OF HUNTINGTON BEACH t
NOTES TO FINANCIAL STATEMENTS !�
(Continued)
June 30, 1985
15. PRIOR PERIOD ADJUSTMENTS (CONTINUED):
r
I
I
d. (Continued) :
Restatement for
Balance _Change in Accounting
June 30, 1984 Public Balance
as originally Facilities Parking June 30, 1984
Reported Corporation Authority as Restated
General Fixed
Assets:
Land $ 22,910,700 $ 669,442 $ 371 ,065 $ 23,951 ,207
Buildings 10,003,383 13,243,862 — 23,247,245
Machinery and
equipment 8,774,735 — 2,062 8,776,797
Improvements
other than
buildings 4,904,007 — 1 ,730,208 6,634,215
Construction in
progress 435,826 — — 435,826
Total $ 47,028,651 $ 13,913,304 $ 2, 103,335 $ 63,045,290
General Long—Term
Debt:
Bonds payable $ 3,695,000 $ 12,000,000 $ 1 ,325,000 $ 17,020,000
Other. long—
term debt 12,697,632 — — 12,697,632 `
Total $ 16,392,632 $ 12,000,000 $ 1 ,325,000 $ 29,717,632
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f
s
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t
i
See accountants' report.
—32—
I .
FINANCIAL STATEMENTS
OF
INDIVIDUAL FUNDS
' AND
ACCOUNT GROUPS
1 .
J
t
1
I
' GENERAL FUND
' The General Fund is used to account for all revenues and expenditures of the
City which are not required to be accounted for in other special purpose funds.
i
1
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1
I
CITY OF HUNTINGTON BEACH SCHEDULE B-1
GENERAL FUND
COMPARATIVE BALANCE SHEET
' June 30, 1985 and 1984
' 1985 1984
ASSETS
' Cash and investments $ 11 ,667,648 $ 11,734,151
Taxes receivable 473,441 599,490
Accrued interest receivable 73,280 100,453
Accounts receivable 460,426 276,345
Due from other agencies 855,914 653,458
Due from other funds 1,926,495 996,106
Inventory ' 148,906 196,567
Deposits 209,937 27,184
TOTAL ASSETS $ 15,816,047 $ 14,5831,754
' LIABILITIES AND FUND BALANCE
LIABILITIES:
' Accounts payable $ 1,169,666 $ 1,011 ,766
Accrued payroll 1,600,646 1,513,464
Deposits 689,785 1 ,074,209
Deferred revenue 709,873 576,974
Due to other funds 24,447
TOTAL LIABILITIES 41169,970 4,200,860
FUND BALANCE:
Reserved for inventory 148,906 196,567
Reserved for encumbrances 2,275,715 1,693,715
Reserved for long—term receivables 1 ,372,206 1,565,825
Reserved for other fund deficits 2,248,962 —
,� Reserved for City Council projects 25,000 25,000
Unreserved 5,575,288 6,9010787
TOTAL FUND BALANCE 119646,077 10,382,894
TOTAL LIABILITIES AND FUND BALANCE $ 15,816,047 $ 14,583,754
1
—33—
SCHEDULE B-2 r
CITY OF HUNTINGTON BEACH
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the year ended June 30, 1985
With comparative totals for the year ended June 30, 1984
r-
1985
Variance -
Favorable 1984
: Budget Actual (Unfavorable) Actual
REVENUES:
Property taxes $18,517,546 $17,073,983 $(1 ,443,563) $16,447,299
Other taxes 25,266,000 25,923; 113 657, 113 22,878,559
Licenses and permits 3,377,000 3,591:493 214,493 3,384,322
Fines, forfeitures, and penalties 1,966,500 2,093,975 127,475 1 ,923,143
From use of money and property 3,690,700 3,899,972 209,272 3,734, 107
From other agencies 1,660, 100 5,953,540 4,293,440 1,871 ,988
Charges for current services 2,085,400 2,202, 185 116,785 1 ,924,893
Other 553,400 364,156 (189,244) 1,052,519 r
TOTAL REVENUES 57, 116,646 61 , 102,417 3,985,771 53,216,830
EXPENDITURES:
City Council 127,436 128,635 (11199) 111 ,048
City Administrator 649,060 633,514 15,546 480,390
City Treasurer 289,165 267,882 21,283 141 ,158
City Attorney 885,974 806, 146 79,828 729,693 r
City Clerk 220,180 194,834 25,346 163,473
Administrative services 2,727,651 2,558,796 168,855 2,362,261
Development services 1,805,885 1,759,542. 46,343 1,632865
Fire 9,484,864 9,469,458 15,406 8,568:812 r
Police 17,471 ,286 17,114,924 356,362 15,601 ,080
Community services 5,479,462 5, 169,351 310, 111 4,955,385
Public works 14,887,685 13,625,016 1,262,669 12,528,418
Non-departmental 3,694,251 4,867,215 (1,172,964) 3,740,992
Capital outlay 4,829,011 3,098,315 1,730,696 2, 161,558
TOTAL EXPENDITURES 62,551 ,910 59,693,628 2,858,282 53, 177,133
EXCESS OF REVENUES OVER
'(UNDER) EXPENDITURES (5,435,264) 1 ,408,789 6,844,053 39,697
OTHER FINANCING SOURCES (USES):
Operating transfers in 2,598,500 2,795,907 197,407 2,800,375
Operating transfers out (1 ,423,950) (1,423,950) - (1 ,540,094)
TOTAL OTHER FINANCING SOURCES
(USES) 1, 174,550 1,371 ,957 197,047 1 ,260,281
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES (4,260,714) 2,780,746 7,041 ,460' 1,299,978
FUND BALANCE - BEGINNING OF THE YEAR 10,382,894 10,382,894 - 9,488,452
Prior period ajdustment - - - (405,536) r
Residual equity transfers in - 682,437 682,437 -
Residual equity transfers out - (2,200,000) (2,200,000) -
FUND BALANCE - END OF YEAR $ 6, 122, 180 $119646,077 $ 5,523,897 $10,382,894 r
-34-
1 � •
' SPECIAL REVENUE FUNDS
' Gas Tax — This fund accounts for revenues and expenditures apportioned under
the Streests and Highways Code of the State of Caliornia. Expenditures may be
made for any street—related purpose allowable under the Code.
' Sewer, — This fund is used to account for fees received from developers to be
used for new sewer facilities.
Planned Local Drainage — This fund is used to account for fees received from
developers to be expended on the City' s drainage system.
Federal Revenue Sharing — This fund is used to account for the receipt and
disposition of revenue sharing entitlements.
Public Communications — This fund is used to account for monies received from
cable television rights granted within the City limits. These monies must be
expended on community—oriented public television.
Other Grants — This fund accounts for grant monies received from federal ,
state and county agencies not accounted for in other funds. Expenditures for
these monies are restricted to the granting agency's requirements.
Park Acquisition and Development — This fund is used to account for fees
received from developers to develop the City's park system.
Flood Control — This fund accounts for the accumulation of monies to be spent
on improving the flood control facilities within the City.
HUD Subsidy — This fund accounts for transactions of rehabilitation loans
made under the Community Development Block Grant program.
1
/ \ r
1. CITY OF HUNTINGTON 'tL1CH
SPECIAL REVENUE FUNDS r
COMBINING BALANCE SHEET
r-
June 30, 1985
With comparative totals for June 30, 1984
Planned Federal r
Local Revenue
Gas Tax Sewer Drainage Sharing
ASSETS
Cash and investments $ 3,647,942 $ 3,607,239 $ 1,958,931 $
Accrued interest receivable 21,289 21,738 11,879 -
Accounts receivable 4, 191 144,219 545,699 -
Due from other agencies - - - 369, 136
Due from other funds - 51,083 72,398 -
TOTAL ASSETS $ 3,673,422 $ 3,824,279 $ 2,588,907 $ 369, 136
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ 148,984 $ 34,419 $ 47,490 $ -
Accrued payroll - - - - r
Deposits - 64,408 - -
Deferred revenue - 51 ,083 12,398 -
Due to other funds - - - 369,136 r
TOTAL LIABILITIES 148,984 .149,910 119,888 369,136
r
FUND BALANCES:
Reserved for encumbrances 438,792 43,327 173,393 -
Reserved for long-term receivables - - - -
Unreserved:
Designated for subsequent years
expenditures 916,200 27,200 97,600 -
Undesignated (deficit) 2, 169,446 3,603,842 2, 198,026 -
TOTAL FUND BALANCES 3,524,438 3,674,369 2,469,019 -
r
TOTAL LIABILITIES AND
FUND BALANCES $ 3,673,422 $ 3,824,279 $ 2,588,907 $ 369, 136
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-35- i
r-
SCHEDULE C-1
Park
Acquisition
1 Public Other and Flood HUD Totals
Communications Grants Development Control Subsidy 1985 1984
$ 37,358 $ 336,846 $ 3,435,451 $ 208,050 $ 18,235 $ 13,250,052 $ 10,678,879
224 2,645 20,618 1 ,345 79,738 98,016
- 5,521 173,992 - - 873,622 311,669
- 110,605 - - - 479,741 950,255
- 1 ,064,483 3,547,664 - - 4,735,628 4,089,483
$ 37,582 $ 1 ,520, 100 $ 7, 177,725 $ 209,395 $ 18,235 $ 19,418,781 $ 1631128P302
$ 1 ,101 $ 85,464 $ 73,426 $ - $ - $ 390,884 $ 542,621
3,827 10,042 1 ,391 - 15,260 9,071
1 ,000 65,408 682
3,547,664 - - 3,671 , 145 3,025,000
- 369, 136 25
4,928 95,506 3,623,481 - - 4,51.1 ,833 3,577,399
3,920 456,491 400,852 - 1 ,516,775 564,406
- 1 ,064,483 - - - 1 ,064,483 1 ,407,410
13,431 - - 1, 150,431 170,474
28,734 (192,380) 3, 139,961 209,395 18,235 11075,259 10,408,613
' 32,654 1 ,424,594 3,554,244 209,395 18,235 14,906,948 12,550,903
' $ 37,582 $ 1 ,520, 100 $ 7, 177,725 $ 209,395 $ 18,235 $ 19,418,781 $ 16, 128,302
-36-
r
CITY OF HUNTINGTON BEKi:H
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
For the year ended June 30, 1985
With comparative totals for the year ended June 30, 1984
Planned Federal
Special Local Revenue
Gas Tax Sewer Drainage Sharing
REVENUES:
Licenses and permits $ $ 120,903 $ 214,898 $From use of money and property 349, 116 364,301 210, 176 —
From other agencies 2,583,689 — 1 ,163,730 1 ,875,966
Charges for current services . 59,239 — — —
TOTAL REVENUES 2,992,044 485,204 1 ,588,804 1 ,875,966
EXPENDITURES:
City Administrator — — — —
Community services — — — —
Fire
Police — — — —
Public works — — — —
Housing and Community Development — — — —
Capital outlay 1 ,798, 146 558,203 11420,078 —
TOTAL EXPENDITURES 1,798, 146 558,203 1 ,420,078 —
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1 ,193,898 (72,999) 168,726 1 ,875,966 F
OTHER FINANCING SOURCES (USES):
Operating transfers in — — — —
Operating transfers out (1 ,219,941 ) — — (11,875,966)
TOTAL OTHER FINANCING
SOURCES (USES) (1 ,219,941 ) — — (1 ,875,966)
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES (26,043) (72,999) 168,726 —
FUND BALANCES — BEGINNING OF YEAR 3,550,481 3,747,368 2,300,293
r
Prior period adjustments — — — —
{
Residual equity transfers in — — —
r
FUND BALANCES — END OF YEAR $ 3,524,438 $ 3,674,369 $ 2,469,019 $ —
r•
—37—
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t
' � _ • SCHEDULE C-2
Park
.Aquisition
Public Other and Flood HUD Totals
Communications Grants Development Control Subsidy 1985 1984
i $ - $ - $ 2,036, 117 $ - $ - $ 2,371 ,918 $ 1,715,251
7,206 35,074 218,389 9,395 46,922 1,240,579 1,686,432
156,723 1, 154,696 - - - 6,934,804 8,065,337
' - - - - - 59,239 85,008
163,929 1, 189,770 _2,254,506 9,395 46,922 10,606,540 11 ,552,028
97,452 - - - - 97,452 -
- 3,478 114, 119 - 117,597 114,730
24,376 _ _ _ 24,376
7,718 7,718
- 26,494 - - - 26,494 -
i - 213,221 - _ 448,744 661 ,965 394,339
58,091 675,423 209,045 4,718,986 5,204, 193
155,543 950,710 323, 164 - 448,,744 5,654,588 5,713,262
i
8,386 239,060 1,931,342 9,395 (401,822) 4,951 ,952 5,838,766
i
- - 300,000 - 328,309 628,309 -
(328,309) - - - (3,424,216) (3,888,664)
- (328,309) 300,000 - 328,309 (2,795,907) (3,888,664)
' 8,386 (89,249) 2,231 ,342 9,395 (73,513) 2,156,045 1,950, 102
24,268 1 ,513,843 4,347,902 - 527,210 16,011 ,365 14,061 ,263
- - (3,025,000) - (435,462) (3,460,462) -
- - 200,000 - 200,000 -
$ 32,654 $ 1 ,424,594 $ 3,554,244 $ 209,395 $ 18,235 $ 14,906,948 $ 16,011 ,365
-38-
1
SCHEDULE C-3
CITY OF HUNTINGTON�bc:ACH
SPECIAL REVENUE FUNDS r
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL r
For the year ended June 30, 1985
r
SPECIAL GAS TAX
r
Variance -
Favorable
Budget Actual (Unfavorable)
REVENUES:
Other taxes $ 2,291 ,000 $ 2,431 ,881 $ 140,881
From use of money and property 180,000 349,116 169,116
From other agencies 1 ,047,000 151 ,808 (895, 192) r
Charges for current services 285,000 599239 (225,761 )
TOTAL REVENUES 3,803,000 299929044 (810,956)
r
EXPENDITURES:
Capital outlay 4,566,884 1 ,798, 146 29768,738
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (7639884) 1 ,193,898 19957,782
OTHER FINANCING USES:
Operating transfers out 1, 140,000 1 ,219,941 79,941
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES (1 ,903,884) (269043) 1 ,877,8111
r
FUND BALANCE - BEGINNING OF YEAR 3,550,481 39550,481 -
FUND BALANCE - END OF YEAR $ 1 ,646,597 $ 3,524,438 $ 1 ,877,841
r
SEWER
r
REVENUES:
Licenses and permits $ 32,000 $ 120,903 $ 88,903
From use of money and property 1809000 364,301 184 ,301
r
TOTAL REVENUES 212,000 4850204 273,204
EXPENDITURES:
Capital outlay 1 ,925,163 558,203 1 ,366,960
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (1 ,7139163) (72,999) 1 ,640, 164
r
FUND BALANCE - BEGINNING OF YEAR 3,747,368 3,747,368 -
FUND BALANCE - END OF YEAR $ 2,034,205 $ 3,674,369 $ 1 ,640, 164
r
t
-39- r
CITY OF HUNTINGTON BEACH SCHEDULE C-3
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
' For the year ended June 30, 1985
PLANNED LOCAL DRAINAGE
' Variance -
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 250,000 $ 214,898 $ (35,102)
From use of money and property 150,000 210,176 60, 176
From other agencies - 1, 163,730 1 , 163,730
TOTAL REVENUES 400,000 115889804 11188,804
EXPENDITURES:
Capital outlay 2,732,981 1,420,078 1 ,312,903
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (2,332,981 ) 168,726 2,501 ,707
' FUND BALANCE - BEGINNING OF YEAR 2,300,293 2,300,293 -
FUND BALANCE - END OF YEAR $ (32,688)$ 2,469,019 $ 2,501 ,707
FEDERAL REVENUE SHARING
REVENUES:
From use of money and property $ 40,000 $ - $ (40,000)
From other agencies 1 ,549,000 1 ,875,966 32.6,966
TOTAL REVENUES 1,589,000 1,875,966 286,966
OTHER FINANCING USES:
Operating transfers out 1,589,000 1 ,875,966 (286,966)
EXCESS OF REVENUE OVER
OTHER USES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR $ - $ _ $ _
-40-
SCHEDULE C-3
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the year ended June 30, 1985
r
PUBLIC COMMUNICATIONS
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ - $ 7,206 $ 7,206
From other agencies 166,000 1561723 (9,277)
TOTAL REVENUES 1661000 163,929 (2,071 )
EXPENDITURES:
City Administrator 115,636 97,452 18, 184
Capital outlay 611403 589091 3,312 r
TOTAL EXPENDITURES 177,039 1559543 21,496
EXCESS OF REVENUE OVER (UNDER) r
EXPENDITURES (11 ,039) 8,386 19,425
FUND BALANCE - BEGINNING OF YEAR 24,268 249268 -
FUND BALANCE - END OF YEAR $ 13,229 $ 32,654 $ 19,425
OTHER GRANTS
REVENUES:
From use of money and property $ - $ 35,074 $ 35,074
From other agencies 1 ,515,000 1 , 154,696 (360,304)
TOTAL REVENUES 11515,000 1 , 1899770 325,230
EXPENDITURES:
Fire 28,701 24,376 4,325
Police 18,000 7,718 10,282
Community services 3,840 - 3,478 362
Public works 27,600 26,494 1, 106
Housing and Community Development 207,878 213,221 (5,343)
Capital outlay . 39423,431 675,423 2,748,008
TOTAL EXPENDITURES 3,709,450 950,710 2,7587740
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (2, 194,450) 239,060 2,433,510
r
OTHER FINANCING USES:
Operating transfers out - 328,309 (328,309)
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES (2, 194,450) (89,249) 2, 105,201
FUND BALANCE - BEGINNING OF YEAR 1 ,513,843 1 ,513,843 -
r-
FUND BALANCE (DEFICIT) - END OF YEAR $ (680,607)$ 1 ,424,594 $ 2, 105,201
i
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-41-
' SCHEDULE C-3
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
' COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the year ended June 30, 1985
PARK ACQUISITION AND DEVELOPMENT
' Variance
Favorable
Budget Actual (Unfavorable)
' REVENUES:
Licenses and permits $ 1 ,998,000 $ 2,036, 117 $ 38, 117
From use of money and property 50,000 218,389 168,389
TOTAL REVENUES 2,048,000 2,254,506 206,506
' EXPENDITURES:
Community services 165, 119 114,119 51 ,000
Capital outlay 2,089,244 209,045 1 ,880, 199
' TOTAL EXPENDITURES 2,254,363 323, 164 1 ,981 , 199
EXCESS OF REVENUE OVER (UNDER)
' EXPENDITURES (206,363) 1 ,931 ,342 2, 137,705
OTHER FINANCING USES:
Operating transfers in - 300,000 300,000
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES (206,363) 2,231 ,342 2,437,705
' FUND BALANCE - BEGINNING OF YEAR 4,347,902 4,347,902 -
Prior period adjustment (3,025,000) (3,025,000) -
FUND BALANCE - END OF YEAR $ 1 , 116,539 $ 3,554,244 $ 2,437,705
' FLOOD CONTROL
' REVENUES:From use of money and property $ - $ 9,395 $ 9,395
' FUND BALANCE - BEGINNING OF YEAR - - -
Residual equity transfers in - 200,000 200,000
FUND BALANCE - END OF YEAR $ - $ 209,395 $ 209,395
-42-
C-1 (7)
SCHEDULE C-3
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS r
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the year ended June 30, 1985
HUD SUBSIDY
r
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
From use of money and property $ - $ 46,922 $ 4.6,922
r
EXPENDITURES:
Housing and Community Development - 448,744 (448,744)
EXCESS OF REVENUES OVER '
(UNDER) EXPENDITURES - (401 ,822) (401 ,822)
OTHER FINANCING SOURCES: F
Transfers in - 328,309 328,309
EXCESS OF REVENUES AND OTHER
r
FINANCING SOURCES OVER (UNDER)
EXPENDITURES - (73,513) (73,5.13)
FUND BALANCE - BEGINNING OF YEAR 527,210 527,210 -
Prior period adjustment - (435,462) (435,462)
FUND BALANCE - END OF YEAR $ 5271210 $ 18,235 $ (508,975)
r
r
r
r
-43-
CITY OF HUNTINGTON BEACH SCHEDULE C-3
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the year ended June 30, 1985
TOTALS
' Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 2,280,000 $ 2,371 ,918 $ 91 ,918
From use of money and property 600,000 1,240,579 640,579
From other agencies 6,568,000 6,934,804 366,804
Charges for current services 285,000 59,239 (225,761 )
TOTAL REVENUES 9,733,000 10,606,540 873,540
' EXPENDITURES:
Administration 115,636 97,452 18, 184
Community services 168,959 117,597 51 ,362
Fire 28,701 24,376 4,325
Police 18,000 7,718 10,282
Public works 27,600 269494 1 , 106
' Housing and community development 207,878 661 ,965 (4549087)
Capital outlay 14,799, 106 427189986 101080, 120
TOTAL EXPENDITURES 15,365,880 59654*588 9,711 ,292
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (5,632,880) 4,951 ,952 10,584,832
OTHER FINANCING SOURCES (USES):
Operating transfers in - 628,309 628,309
Operating transfers out (2,729,000) (3,424,216) (695,216)
TOTAL OTHER FINANCING
SOURCES (USES) (2,729,000) 2,795,907 (66,907)
EXCESS OF REVENUES AND OTHER
' SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES (8,361 ,880) 2, 156,045 10,517,925
FUND BALANCES - BEGINNING OF YEAR 16,011 ,365 16,011 ,365 -
Prior period adjustment - (3,460,462) (3,460,462)
' Residual equity transfers in - 2001000 200,000
FUND BALANCES - END OF YEAR $ 7,649,485 $ 14,906,948 $ 7,257,463
' -44-
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(This page left blank intentionally)
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r
1 DEBT SERVICE FUNDS
' 1970 Park Bond — This fund records the accumulation and distribution of
monies to meet the debt service requirements of the City's 1970 Park Bonds, a
general obligation bond.
tRedevelopment Agency — This fund records the accumulation and disbursement
of monies to meet the debt service requirements of the Redevelopment
Agency.
' Public Facilities Corporation — This fund records the accumulation and
disbursement of monies to meet the debt service requirements of the first and
second leasehold mortgage revenue bonds of the Huntington Beach Public
Facilities Corporation.
Parking Authority — This fund records the accumulation and disbursement of
t. monies to meet the debt service requirements of the Parking Authority Revenue
Bonds.
CITY OF HUNTINGTON ACH
DEBT SERVICE FUNDS r
COMBINING BALANCE SHEET
June 30, 1985
With comparative totals for June 30, 1984
1970
Park
Bonds
r
ASSETS:
Cash and investments $ 45,730
Cash with fiscal agent _
Taxes receivable 7,755
Interest receivable 269
TOTAL ASSETS $ 53,754 r
FUND BALANCES:
Reserved for Debt Service $ 53,754
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—45—
F
• • SCHEDULE D-1
Public
Redevelopment Facilities Parking Totals
Agency Corporation Authority 1985 . 1984
$ 64,775 $ - $ - $ 110,505 $ 14,535
- 4,519,808 1, 138, 129 5,657,937 5,691 ,965
1,686 - - 9,441 11 ,490
448 102,966 11 ,289 114,972 141 :911
' $ 66,909 $ 4,622,774 $ 1 , 149,418 $ 5,892,855 $ 5,859,901
$ 66,909 $ 4,622,774 $ 1 ,149,418 $ 5,892,855 $ 5,859,901
1 -46
CITY OF HUNTINGTON BEACH
r
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
For the year ended June 30, 1985
With comparative totals for June 30, 1984
1970
Park
Bonds
REVENUES:
Property taxes $ 489,209
From use of money and property 6,782
t
TOTAL REVENUES 495,991
EXPENDITURES:
Principal retirement 245,000
Interest and fiscal charges 223,262
TOTAL. EXPENDITURES 468,262
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 279729
OTHER FINANCING SOURCES:
Operating transfers in -
Proceeds from Certificates of Participation -
TOTAL OTHER FINANCING SOURCES -
EXCESS OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES 27,729
FUND BALANCES - BEGINNING OF YEAR 26,025
Residual equity transfer out -
FUND BALANCES - END OF YEAR $ 53,754
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' SCHEDULE D-2
I
' Public
Redevelopment Facilities Parking Totals
' Agency Corporation Authority 1985 1984
$ 60,103 $ -- $ - $ 549,312 $ 470,887
' 6,806 489,278 121 ,944 624,810 653,861
66,909 489,278 121 ,944 1, 174, 122 1024,748
' - 5601000 155,000 960,000 860 000
654,317 58,525 936,104 970, 149
- 1 ,214,317 213,525 1 ,896, 104 1,8307149
66,909 (725,039) (91 ,581 ) (721 ,982) (705,401 )
= 1 ,253,900 2149675 1,468,575 1 ,253,900
713,639
1 ,253,900 2141675 12468,575 1 ,967,539
66,909 528,861 123,094 746,593 1 ,262,138
' 713,639 4,093,913 1,026,324 5,859,901 4,597,763
(713,639) - - (713,639) -
$ 66,909 $ 4,622,774 $ 1 , 149,418 $ 5,892,855 $ 5,859,901
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CITY OF HUNTINGTON`lir:ACH SCHEDULE D-3
DEBT SERVICE FUNDS r
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL r
For the year ended June 30, 1985
1970 PARK BOND
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 473,000 $ 489,209 $ 16,209
From use of money and property 2,000 . 6,782 4,782
TOTAL REVENUES 475,000 495V991 20,991
EXPENDITURES:
Principal retirement 245,000 245,000 -
Interest 2301000 2239262 69738
TOTAL EXPENDITURES 475,000 4681262 6,738
EXCESS OF REVENUE OVER
EXPENDITURES - 27,729 27,729 r
FUND BALANCE - BEGINNING OF YEAR 26,025 269025 -
r
FUND BALANCE - END OF YEAR $ 26,025 $ 53,754 $ 27,729
REDEVELOPMENT AGENCY
REVENUES:
Property taxes $ - $ 60,103 $ 60,103
From .use of money and property 209000 6,806 (13,194)
TOTAL REVENUES 20,000 669909 46,909
FUND BALANCE - BEGINNING OF YEAR 713,639 713,639 -
r
Residual equity transfers out (713,639) (713,639) -
FUND BALANCE - END OF YEAR $ 20,000 $ 66,909 $ 46,909
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CITY OF HUNTINGTON BEACH SCHEDULE D-3
' DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the year ended June 30, 1985
PUBLIC FACILITIES CORPORATION
' Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:From use of money and property $ - $ 489,278 $ 489,278
' EXPENDITURES: -
Principal retirement 560,000 560,000
Interest 654,317 654,317
' TOTAL EXPENDITURES 1 ,214,317 1 ,214,317 -
EXCESS OF REVENUE OVER
EXPENDITURES C1 ,214,317) (725,039) 489,278
OTHER FINANCING SOURCES: -
Operating transfers in 1,253,900 1 ,2539900
EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES 39,583 528,861 489,278
FUND BALANCE - BEGINNING OF YEAR 4,093,913 4,093,913 _ -
' FUND BALANCE - END OF YEAR $ 4, 133,496 $ 4,622,774 $ 489,278
PARKING AUTHORITY
REVENUES:
From use of money and property $ - $ 121 ,944 $ 121 ,944
EXPENDITURES:
Principal retirement 155,000 155,000 -
Interest 58,525 58,525 `
TOTAL EXPENDITURES 213,525 2139525
EXCESS OF REVENUE OVER
' (UNDER) EXPENDITURES (213,525) (91 ,581 ) 121 ,944
OTHER FINANCING SOURCES (USES):
Operating transfers in 170,050 214,675 44,625
' EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES (43,475) 123,094 166,569
tFUND BALANCE - BEGINNING OF YEAR 19026,324 11026,324 -
FUND BALANCE - END OF YEAR $ 982,849 $ 1 ,149,418 $ 166,569
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SCHEDULE D-3 r
CITY OF HUNTINGTO2EACH
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the year ended June 30, 1985
TOTALS
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Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 473,000 $ 549,312 $ 76,312
From .use of money and property 22,000 6249810 602,810
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TOTAL REVENUES 495,000 191749122 679, 122
EXPENDITURES:
Principal retirement 9609000 960,000 -
Interest and fiscal charges 942,842 9369104 6,738
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TOTAL EXPENDITURES 1 ,902,842 1 ,896, 104 6,738
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (11407,842) (721 982) 6859860
OTHER FINANCING SOURCES (USES):
Operating transfers in 11423,950 11468t575 441625 r
EXCESS OF REVENUES AND OTHER
SOURCES OVER EXPENDITURES r
AND OTHER USES 16, 108 746,593 730,485
FUND BALANCE - BEGINNING OF YEAR 5,859,901 5,859,901 -
Residual equity transfer out (713,639) (713,639) -
FUND BALANCE - END OF YEAR $ 5,162,370 $ 5,892,855 $ 730,485
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1
CAPITAL PROJECTS FUNDS
iRedevelopment Agency — This Fund accounts for acquisition and construction
activity in the five Redevelopment Project Areas.
Low—Income Housing — This fund accounts for development and renovation
activity for low—income housing. As prescribed by the California Health and
Safety Code, 20% of Redevelopment Agency tax increment revenue is set aside in
1 this fund for the purpose of low—income housing development.
' Public Facilities Corporation — This fund accounts for capital improvements
to the Civic Center and Central Library Complexes.
Parking Authority — This fund accounts for capital improvements made for off—
street parking facilities.
Special Capital Outlay — This fund accounts for special miscellaneous capital
projects and expenditures not appropriated at the beginning of the fiscal year.
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' CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
r
June 30, 1985
With comparative totals for June 30, 1984
r
Redevelopment r
Agency
ASSETS
i
Cash and term investments $
Cash with fiscal agent -
Accounts receivable 1 ,451
Accrued interest receivable -
Note receivable -
Due from other fund -
TOTAL ASSETS $ 11451
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ -
Accrued payroll 5,359
Due to other fund 6,192
TOTAL LIABILITIES 11 ,551
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FUND BALANCES (DEFICITS):
Reserved for continuing projects -
Unreserved (10, 100)
TOTAL FUND BALANCES (DEFICITS) (101100)
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TOTAL LIABILITIES AND FUND BALANCES $ 1 ,451
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SCHEDULE E-1
Low Public Special
Income Facilities Parking Capital Totals
Housing Corporation Authority Outlay 1985 1984
' $ 10,447 $ - $ 155, 159 $ - $ 165,606 $ 830,501
- 728,915 - - 728,915 4,545,843
- - - = 1 ,451 -
45 4,307 941 5,293 31 ,572
- - - - 823,000
6,192 - - - 6, 192 -
$ 16,684 $ 733 222 $ 156, 100 $ - $ 907,457 $ 6 230,916
$ - $ - $ - $ - $ - $ 43,977
5,359 6,882
- - - - 6, 192 -
11 ,551 50,859
- 733,222 156,100 - 889,322 4,614,776
16,684 - - - 6,584 1,565,281
16,684 733,222 156, 100 - 895,906 6, 180,057
$ 16,684 $ 733,222 $ 156, 100 $ - $ 907,457 $ 6,230,916
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CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
For the year ended June 30, 1985
With comparative totals for June 30, 1984
r-
Redevelopment
Agency
REVENUES: r-
Property taxes $From use of money and property
TOTAL REVENUES
r
EXPENDITURES:
Housing and Community Development 304,419
Capital outlay 2,527
TOTAL EXPENDITURES 306,946 -
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (306,946)
OTHER FINANCING SOURCES (USES):
Operating transfers in - i
Advances from General Fund 237,336
Proceeds from Certificates of Participation -
Operating .transfers out -
TOTAL OTHER FINANCING SOURCES (USES) 237,336
EXCESS OF REVENUES AND OTHER SOURCES OVER -
(UNDER) EXPENDITURES AND OTHER USES (69,610)
FUND BALANCES - BEGINNING OF YEAR 4,638,170
Residual equity transfers out (4,578,660)
FUND BALANCES - END OF YEAR $ (10, 100)
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SCHEDULE E-2
1
' Low Public Special
Income Facilities Parking Capital Totals
Housing Corporation Authority Outlay 1985 1984
$ 15,026 $ - $ - $ - $ 15,026 $ 17,279
17658 60, 162 15,478 52,748 )30,046 102,964
' 16,684 60, 162 15,478 52,748 145,072 120,243 -
_ - _ - 304,419 291 ,315
23,973 29,918 56,418 1 ,255,082
- 23,973 - 29,918 360,837 1 ,546.,397
161684 361189 15,478 22,830 (215,765) (19426,154)
- - - - - 1 ,374,483
237,336 -
- - _ - 3,573,981
(44,625) (44,625)
- - (447625) - 192,711 4,948,464
169684 36, 189 (29,147) 22,830 (23,054) 3,522,310
' - 697,033 185,247 659,607 6,180,057 2,657,747
1 - - - (682,437) (5,2611097) -
$ 16,684 $ 733,222 $ 156, 100 $ - $ 895,906 $ 6, 180,057
' -55-
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1 ENTERPRISE FUNDS
Water — This accounts for the City' s water service operations to residents
and bu$inesses.
Meadowlark Golf Course - This fund is used to account for the operations of a
City—owned golf course :Leased to a private corporation which pays the City a
rental amount based on the golf course total revenues.
' Emerald Cove Housing — This fund is used to account for the operation of a
senior citizen apartment complex leased by the City from the Redevelopment
Agency.
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CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
June 30, 1985
With comparative totals for June 30, 1984
Water Fund r
ASSETS
CURRENT ASSETS:
Cash and term investments $ 4,745,213
Accounts receivable 542,406
Accrued interest receivable 28,551
Due from other funds 22,208
Prepaid expenses - r
TOTAL CURRENT ASSETS 5,338,378
RESTRICTED ASSETS:
Cash with fiscal agent 686,060
PLANT, PROPERTY AND EQUIPMENT (AT COST):
Land 410,721 r
Buildings and improvements 971 ,219
Machinery and equipment 43,130,528
Construction in process 102,442 r
449614,910
Less accumulated depreciation (17,289,329)
TOTAL PLANT, PROPERTY AND EQUIPMENT 27,325,581
TOTAL ASSETS $ 33,350,019
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES: r
Accounts payable $ 915,374
Accrued payroll 40,199
Deferred income 22,208
Accrued interest 11 ,875
Due to other funds -
Deposits 756,810 r
Current portion of long-term liabilities 204,000
TOTAL CURRENT LIABILITIES 1 ,950,466
LONG-TERM LIABILITIES: r
Bonds payable 1 ,111 ,000
Note payable 366,312
Compensated absences payable 129,705
Certificates of Participation payable - r
Less current portion (2041000)
TOTAL LONG-TERM LIABILITIES 1 ,403,017
TOTAL LIABILITIES 3,353,483
FUND EQUITY:
Contributed capital 29,546,802 r
Retained earnings:
Reserved for Debt Service 449,734
Unreserved -
TOTAL FUND EQUITY 29,996,536 `-
TOTAL LIABILITIES AND FUND EQUITY $ 33,350,019
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• SCHEDULE F-1
' Meadowlark Emerald
Golf Cove Totals
Course Housing 1985 1984
$ 336,708 $ 1 , 149,461 $ 6,231 ,382 $ 4,589,516
- - 542,406 524,666
2,017 22,347 52,915
22,208 -
- 238,377 238,377 32,269
338,725 1 ,410, 185 7,087,288 5, 146,451
- 773,423 1,459,483 620,354
3,052,004 1,288,670 4,751 ,395 3,462,725
260,820 - 1 ,232,039 1,232,039
368,017 43,498,545 43,432,817
- 3,777,438 3,879,880 -
3,680,841 5,066, 108 53,361 ,859 48, 127,581
(409,762) - (17,699,091) (16,536,959)
3,271 ,079 5,0669108 35,662,768 31 ,590,622
$ 3,609,804 $ 7,249,716 $ 44,209,539 $ 37,357,427
$ _ $ 26,185 $ 941 ,559 $ 631 ,101
40, 199 43,094
- 22,208 -
42,114 36,416 90,405 42,631
3219000 321 ,000 955
24,300 781 , 110 446,546
23,656 227,656 224, 108
65,770 407,901 2,4241137 1,388,435
' - = 1 ,111 ,000 1,271 ,000
17 1 ,804,9 2, 171 ,229 2,234,251
129,705 130,507
4,600,000 4,600,000 -
(23,656) - (227,656) (224, 108)
1,781 ,261 4,600,000 7,784,278 3,411 ,650
1 #847,031 5,007,901 10,208,415 4,800,085
1 ,267,324 2, 121 , 100 32,935,226 30,805,204
r - 120,715 570,449 448,479
495,449 - 495,449 1,303,659
. 1,762,773 2,241 ,815 34,001 , 124 32,557,342
$ 3,609,804 $ 7,249,716 $ 44,209,539 $ 37,357,427
-57-
CITY OF HUNTINGTON nEACH
r
ENTERPRISE FUNDS r
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS r
For the year ended June 30, 1985
With comparative totals for year ended June 30, 1984 r
r
Water
Fund
OPERATING REVENUES:
r
Water sales $ 7,310,579
Golf course rentals _
Apartment rentals -
Other revenues 197,942 r
TOTAL OPERATING REVENUES 7,508,521
OPERATING EXPENSES:
Water pruchases 1 ,736,541
Pumping 2,322,513 r
Water treatment 41 ,216
Transmission and distribution 1 ,377,037
Administrative and general 19112,633
Contributions to General Fund in lieu of taxes 1,097,165 r
Management -
Depreciation 1 ,189,419
r
TOTAL OPERATING EXPENSES 8,876,524
OPERATING INCOME (LOSS) (1 ,368,,003)
NON-OPERATING REVENUES (EXPENSES):
Interest income 541 ,371
Interest expense (561149) r
TOTAL NON-OPERATING REVENUES (EXPENSES) 485,222
- r
NET INCOME (LOSS) (882,781 )
RETAINED EARNINGS - BEGINNING OF YEAR 1 ,332,515
RETAINED EARNINGS - END OF YEAR $ 449,734
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• 'SCHEDULE F-2
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Meadowlark Emerald
Golf Cove Totals
Course Housing 1985 1984
r $ - $ _ $ 7,310,579 $ 6, 168,162
209,425 209,425 188.,311
168,525 168,525 -
- - 197,942 335,321
209,425 168,525 7,886,471 6,691 ,794
r - - 1 ,736,541 948 960
2,322,513 2,089,518
_ _ 41 ,216 33,834
1 ,377,037 1 ,568,539
66,882 19179,515 1,051 ,867
- 1,097, 165 941 ,641
58,610 - 58,610
40,942 1,230,361 1 ,228,619
40,942 125,492 9,042,958 7,862,978 a
168,483 43,033 (1 , 156,487) (1 , 171 , 184)
1
34,718 77,682 653,771 553,885
(127,375) _ - (183,524) (217,540)
(92,657) 77,682 470,247 336,345
75,826 120,715 (686,240) (834,839)
419,623 - 1 ,752, 138 2,586,977
$ 495,449 $ 120,715 $ 1 ,065,898 $ 1 ,752,138
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1
CITY OF HUNTINGTON BEACH
r--
ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
For the year ended June 30, 1985
With comparative totals for year ended June 30, 1984
i�
r
Water
Fund
SOURCES OF WORKING CAPITAL:
Operations:
Net income (loss) $ (882,781 )
Items not requiring working capital:
Depreciation 1 ,189,419 r
Working capital provided by operations 306,638
Contributions from developers 8,922
Contributions from Redevelopment Agency -
Sale of Certificates of Participation - r
TOTAL SOURCES OF WORKING CAPITAL 315,560
r
USES OF WORKING CAPITAL:
Increase in plant, property and equipment, net 236,399
Increase in restricted assets 65,706
Decrease in long-term note payable 42,914
Decrease in long-term bonds payable 160,000
Decrease in compensated absences payable 802
r
TOTAL USES OF WORKING CAPITAL 505,821
NET INCREASE (DECREASE) IN WORKING CAPITAL $ (190,261 )
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL:
Cash and term investments $ 397,901
Interest receivable (16,029)
Accounts receivable 64,698
Due from other funds 22,208
Prepaid expenses -
Other assets (32,269)
Accounts payable (284,273)
Accrued payroll (8,980)
Deferred income (22,208)
Accrued interest payable -
Due to other funds 955
Due to other entities (65,782)
Deposits (244,482)
Current portion of bonds and notes payable (2,000)
NET INCREASE (DECREASE) IN WORKING CAPITAL $ (190,261 )
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• SCHEDULE F-3
Meadowlark Emerald
Golf Cove Totals
Course Housing 1985 1984
' $ 75,826 $ '120,715 $ (686,240) $ (834,839)
40,942 - 1 ,230,361 1 ,228,619
116,768 120,715 544,121 393,780
8,922 816,327
- 2,121 ,100 2,121 ,100 -
- 4,600,000 4,600,000 -
116,768 6,841 ,815 7,274 ,143 1 ,210, 107
- 5,066, 108 5,302,507 38,763
- 773,423 839, 129 1 ,023,261
23,656 _ 66,570 68,021
160,000 160,000
802 -
' 23,656 5,839,531 6,369,008 1 ,290,045
$ 93,112 $ 1 ,002,284 $ 905,135 $ 79,938
$ 94,504 $ 1 , 149,461 $ 1 ,641 ,866 $ (530,382)
(361 ) 22,347 5,957 -
64,698 147,787
- 22,208 -
238,377 238,377 -
- (32,269) -
(26,185) (310,458) (54 ,075)
(8,980) (13,051 )
- - (22,208) -
517 (36,416) (35,899) 3,694
- (321 ,000) (320,045) 407,291
t = (24,300) (90,082) -
(244,482) (36,756)
(1 ,548) - (3,548) (4,446)
$ 93, 112 $ 1 ,002,284 $ 905, 135 $ 79,938
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1
INTERNAL SERVICE FUNDS
Self Insurance - This fund accounts for the City's self insurance activities
(liability, health and workers' compensation) .
Equipment Replacement - This fund accounts for the purchase and operation of
certain vehicles and equipment leased to City departments.
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CITY OF HUNTINGTON BEACH
SCHEDULE G-1
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
June 30, 1985
With comparative totals for June 30, 1984
Self Equipment Totals
Insurance Replacement 1985 1984
ASSETS
CURRENT ASSETS:
Cash and term investments $ 3,016,638 $ 2,3679764 $ 5,384,402 $ 3,897,870
Accounts receivable 8,498 - 8,498 19002
Interest receivable 18, 152 14,343 32,495 38,339
Due from other funds - - - 25,427
TOTAL CURRENT ASSETS 3,043,288 2,3820107 50425,395 3,962,638
PROPERTY AND EQUIPMENT (AT COST): -
Machinery and equipment _ 245,339 245,339
Accumulated depreciation (24,012) (249012)
TOTAL PROPERTY AND
' EQUIPMENT - 221 ,327 221 ,327 -
TOTAL ASSETS $ 3,043,288 $ 2,603,434 $ 5,646,722 $ 3,962,638
' LIABILITIES AND FUND EQUITY
' CURRENT LIABILITIES:
Accounts payable $ 71 ,343 $ 1 ,565 $ 72,908 $ 129,952
Accrued payroll 24,807 - 24,807 31 ,739
TOTAL CURRENT LIABILITIES 96, 150 12565 97,715 161 ,691
LIABILITY FOR SELF-INSURANCE CLAIMS:
Workers compensation 3, 150,000 - 3,150,000 2,652,000
1 Health 290,000 - 290,000 290,000
General liability 1 ,746,000 - 1 ,746,000 1 ,525,000
TOTAL LIABILITY FOR SELF-INSURANCE CLAIMS 5, 186,000 - 59186,000 41467,000
TOTAL LIABILITIES 5,282, 150 11565 59283,715 49628,691
' FUND EQUITY:
Contributions from General Fund - 2,000,000 2,000,000 -
Retained earnings (deficit) (2,238,862) 601 ,869 (1 ,636,993) (666,053)
TOTAL FUND EQUITY
(DEFICIT) (2,238,862) 2,6019 363,007 (666,053)
TOTAL LIABILITIES AND
FUND EQUITY $ 3,043,288 $ 2,603,434 $ 5,646,722 $ 3,962,638
-62-
SCHEDULE G-2
CITY OF HUNTINGTON eiEACH
INTERNAL SERVICE FUNDS r
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the year ended June 30, 1985
With comparative totals for June 30, 1984
r
i
Self Equipment Totals
Insurance Replacement 1985 1984
OPERATING REVENUES:
Charges for service $ 3,452 842 $ 477,305 $_3,930, 147 $ 2,397,964 ,.
OPERATING EXPENSES:
Personnel services 203,486 — 203,486 237,847
Administration and general 1 , 103,225 67,440 1 ,170,665 456,042
Depreciation — 24,012 24,012 —
Workers compensation claims 1 ,335, 139 — 1 ,335,139 1 ,934,670
Employee medical claims 1 ,780,428 — 1 ,780,428 1 ,357,464
Liability claims 977,958 — 977,958 925,539
TOTAL OPERATING EXPENSES 5,400,236 91 ,452 5,491 ,688 4,911 ,562
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OPERATING INCOME (LOSS) (1 ,947,394) 385,853 (1 ,561 ,541 ) (2,513,598)
NON—OPERATING REVENUES:
Interest income 374,585 216,016 590,601 436,623
NET INCOME (LOSS) (1 ,572,809) 601 ,869 (970,940) (2,076,975)
RETAINED EARNINGS (DEFICIT) —
BEGINNING OF YEAR (666,053) — (666,053) 1 ,410,922
i
RETAINED EARNINGS (DEFICIT) -
END OF YEAR $(2,238,862)$ 601 ,869 $(1 ,636,993)$ (666,053)
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CITY OF HUNTINGTON BEACH SCHEDULE G-3
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
1 For the year ended June 30, 1985
With comparative totals for June 30, 1984
Self Equipment Totals
Insurance Replacement 1985 1984
SOURCES OF WORKING CAPITAL:
Operations:
Net income (loss) $(1 ,572,809)$ 601 ,869 $ (970,940)$(2,076,975)
Items no requiring working
capital:
Depreciaton - 24,012 249012 -
Working capital provided
(used) by operations (1 ,572,809) 625,881 (946,928) (2,076,975)
Increase in self-insurance
claims payable 719,000 - 719,000 1 , 115,781
' Contribution from General. Fund - 2,000,000 2,000,000 -
TOTAL SOURCES OF
1 WORKING CAPITAL (853,809) 296252881 1 ,772,072 (961 #194)
USES OF WORKING CAPITAL:
IAcquisition of fixed assets - 245,339 2451339 -
NET INCREASE (DECREASE) IN
WORKING CAPITAL $ (853,809)$ 2,380,542 $ 1 ,526,733 $ (961 , 194)
' ELEMENTS OF INCREASE (DECREASE)
IN WORKING CAPITAL:
Cash and term investments $ (881 ,232)$ 2,367,764 $ 1 ,486,532 $ (819,378)
Accounts receivable 7,496 7,496 3,864
Interest receivable (20,187) 14,343 (5,844) -
Due from other funds (25,427) - (25,427) (70,579)
Accounts payable 58,609 (1 ,565) 57,044 (50,463)
Accrued payroll 6,932 - 6,932 (241,638)
tNET INCREASE (DECREASE)
IN WORKING CAPITAL $ (853,809)$ 2,380,542 $ 1 .526,733 $ (961 , 194)
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AGENCY FUND
Employee Deferred Compensation — This fund accounts for the deposit of monies
authorized by employees to be withheld from salaries for payment at a later
date. The City retains title to the funds until the employee withdraws the
funds, which may not be done until employment is terminated.
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CITY OF HUNTINGTON BEACH SCHEDULE H-1
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
June 30, 1985
' June 30, June 30,
1984 Additions Reductions 1985
EMPLOYEE DEFERRED COMPENSATION FUND
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ASSETS:Cash and term deposits $ 4,125,709 $ 1 ,597,336 $ 165,989 $ 5,557,056
Notes receivable, net of
allowance for amounts
uncollectable 246,158 13,300 113,852 145,606
Other assets 29,375 29,375
' TOTAL ASSETS $ 4,401 ,242 $ 1 ,610,636 $ 279,841 $ 5,732,037
LIABILITIES:
' Note payable $ 29,375 $ $ 575 $ 28,800
Employee deferred compensation 4,371 ,867 1 .497,359 1659989 5,7031237
TOTAL LIABILITIES $ 41401 ,242 $ 1 ,497,359 $ 166,564 $ 5,732,037
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GENERAL FIXED ASSETS ACCOUNT GROUP
., This group is used to account for fixed assets of the City which are used in
the performance of general government functions and are not accounted for in
proprietary fund operations.