HomeMy WebLinkAboutFY 1985/1986 City of Huntington Beach Comprehensive Annual F 1
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City of
1 HUNTINGTON BEACH'
California
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Comprehensive Annual
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inaneial Peeport
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For the, Fiscal Year Ended
June 30, 1986
Robert J. Franz, Deputy City Administrator
1 Daniel T. Villella, Director of Finance
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FUND EQUITIES
' Total fund equities increased $6,631,109 or 9.8% as shown in the table below:
Total Fund Total Fund Percent
' Equity 85/86 Equity 84/85 Increase (Decrease)
Governmental Fund Types
General $12,430,480 $11,646,077 6.7%
' Special Revenue 14,741,476 14,906,948 (1.1 %)
Debt Service 6,864,970 5,892,855 16.4%
Capital .'rojects 226222043 895,906 192.7%
Total $36,658,969 $3393419786 9.9%
Proprietary Fund Types
Enterprise 349829,635 34,001,424 2.4 %
Internal Service 2,848,422 363,007 684.7
Total $37,678,057 $34,364,131 9.6%
' Grand Total $74,331,026 $67,705,917 9.8
' The equity increases in the governmental fund types show the financial health of the
City's general operations. The large equity increase in the proprietary fund types is due
to the large net income for the Equipment Replacement fund.
AGENCY FUNDS
Total assets and liabilities for the City's Agency funds increased by $1,549,805 or 27.0%
to $7,281,842. 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, 1986.
' Description Amount Outstanding
General Obligation Bonds
1970 Park Bonds 3,165,000
Revenue Bonds
' 1963 Water Revenue Bonds 1,053,000
Parking Authority Bonds 1,060,000
Redevelopment Agency Certificates of Participation
' Emerald. Cove Housing Project 4,600,000
Leasehold Mortgage Bonds
' HBPFC Civic Center - 1st Issue 7,4409000
HBPFC Library - 2nd Issue 3,410,000
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Notes Payable
Meadowlark Golf Course 1,781,261 t
San Joaquin Reservoir 321,354
State Coastal Conservancy 425,000
Other
Compensated Absences (Vacation/Sick Leave) 3,277,869
Redevelopment Agency Debt 11,825,857
Self Insurance Claims 57625,000 '
$ 43,984,341
A further analysis of the City's bonded indebtedness is included in notes 10 and 11 to the '
financial statements.
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 ,
$37,232,304, which earned interest of $3,421,650, for a return of 9.19%. At June 30, 1986,
88% of the City's total investments matured in less than 365 days.
The California .Government Code requires 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 law.
FIXED ASSETS '
The genera[ 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, 1986, the
City's general fixed assets amounted to $72,937,969. 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 utilizes an Equipment Replacement fund. This fund is operated as an internal
service fund and all equipment purchased which replaces existing equipment is recorded in '
this fund, and leased to user departments.
General fixed assets are increasing at a lesser rate because much of the City's new '
equipment purchases are capitalized in- the Equipment Replacement fund and not recorded
as general mixed assets.
PROSPECTS FOR THE FUTURE '
lluntington Beach has always attracted people and industry because of a balmy clean-air
climate, coastal location and strong local economy. However, we are facing many of the '
same concerns that other cities are facing. Federal aid to cities is being phased out. We
have planned for this revenue loss, but this makes it imperative that our other revenue
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sources remain stable. The "deep pockets" insurance crisis has had profound effects on the
way cities across the country do business. During the year Huntington Beach became one
' of the many local governments that has -had to go without liability insurance because of the
rising costs of premiums. We are hopeful that the passage of Proposition 51 in June, 1986
will ease this situation and bring down the cost of liability insurance premiums.
Within a fc•w years, our annual expenditures inay approach the limit allowed under Article
13b of the California Constitution (the-..Gann Limit). We must search for alternatives to
deal with this situation. We are very confident that we will meet these challenges.
' Citizens. of Huntington Beach have come to expect the best from their .municipal
government. We will not disappoint them.
' Redevelopment of older areas of our City will continue at a rapid pace. -Construction is
scheduled to begin soon in the downtown area. The "new downtown" will provide new
sources of revenue for the City and will be an entertainment mecca for its citizens.
' DEFEASANCE OF PUBLIC.FACILITITY CORPORATION BONDS
In July 1986, subsequent to year-end, the Huntington Beach Civic Improvement Corporation
' was formed which provided for the defeasance of the Huntington Beach Public Facilities
Corporation Leasehold Mortgage Bonds - First Issue, totalling $7,010,000. The Civic
Improvement Corporation issued $20,060,000 of Certificates of Participation to provide for
' this defeasance. With the remaining proceeds totaling approximately $11,600,000, the City
plans to construct amulti-level parking-structure in the Main/Pier Redevelopment Project
Area. The dramatic drop in interest rates made this possible. Moody's Investors Service
' gave this debt issue a rating of "A" which is the highest rating the City ever received on a
debt issue. In addition, Moody's increased the rating on our 1972 Non-Profit Corporation
Bonds from "Baa-1" to "A" and our General Obligation rating from "A" to "AA". It is highly
unusual for a City to receive tin upgrade in credit ratings in this era of financial volatility
' and reduced public resources. This shows that the financial community has confidence in
the creditworthiness and stability of our City.
SINGLE 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 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. Copies of this report are available from this office.
FINANCIAL REPORTING CERTIFICATES
' The City has prepared an easily readable and efficiently organized Comprehensive Annual
Financial Report that conforms to industry standards. For last year's report, the City
' received a "Certificate of Award for Outstanding Financial Reporting" from the California
Society of Municipal Finance Officers (CSMFO). This year, the City is submitting its
report to both the CSMFO and the Government Finance Officer's Association (GFOA) in
hopes of also receiving the GFOA's. "Certificate of Achievement for Excellence in
' Financial Reporting" along with the CSMFO award. It is our belief that this report
conforms to these high standards.
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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, especially Wayne Lee, Accounting Officer
and Robert Sedlak, Principal Accountant, for their work in the preparation of this report. '
DAN T. VILLELLA
Director o - anc ,
ROBE RT J. '
Deputy City Ad inistrator
Administrative Services Department
DTV:skd ,
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CITY OF HUNTINGTON BEACH
PRINCIPAL CITY OFFICIALS
CITY COUNCIL
Robert P. Mandic, Jr. Mayor
Ruth E. Finley Mayor Pro Tem
Ruth Bailey Councilperson
Jack Kelly Councilperson
Peter Green Councilperson
Donald A. MacAllister Councilperson
John A. Thomas Councilperson
'OTHER ELECTED OF:F.I.CIALS
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Warren G. Mall City Treasurer
Gail Hutton City Attorney
Alicia M. Wentworth City Clerk
ADMINISTRATIVE OFFICIALS
Charles W. Thompson City Administrator
Robert J. Franz Deputy City Administrator
Douglas LaBelle Deputy City Administrator
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
PEOPLE
City Of
CITY COUNCIL
Huntington Beach
ORGANIZATIONAL CHART
CITY
ADMINISTRATOR
CITY CITY
u TREASURER ATTORNEY CITY CLERK
HUN TINGTON BEACH
BUSINESS
LICENSE
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~' POLICE FIRE PUBLIC WORKS DEVELOPMENT ADMINISTRATIVE COMMUNITY
SERVICES I SERVICES SERVICES
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UNIFORM FIRE
DIVISION PREVENTION ENGINEERING I I PLANNING PERSONNEL LIBRARY
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ADMIN. ( REAL
RECREATION&
SERVICES OPERATIONS WATER L J BUILDING PROPERTY HUMAN
RESOURCES
INVESTIGATION HOUSING/ L
DIVISION LANDSCAPE REDEVELOPMENT FINANCE BEACH
SPECIAL INFORMATION
OPERATIONS MA'WTENANCE SYSTEMS
INSURANCE&
BENEFITS"
CITY OF HUNTINGTON BEACH '
GOVERNMENTAL FUND TYPES - REVENUES BY SOURCE '
Last Ten Fiscal Years
1
Licenses Uses of ,
Fiscal and Fines and Money and
Year Taxes Permits Forfeitures Property_ '
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1977 $ 20,949,573 $ 5,329,143 $ 593,325 $ 1,598,632
1978 24,198,061 4,977,744 720,517 1,957,111
1979 19,580,258 3,841,745 1,005,451 2,006,834
1980 24,247,335 4,075,945 1,285,038 2,585,767 '
1981 28,755,.632 5 ,496,256 1 ,526,072 4,250,129 ,
1982 32 ,696,273 3,002 ,807 1,515,914 5,375,601
1983. 36,491,550 3,147 ,981 1 ,748,817 4,550,760 '
1984 39,814,024 5 ,099,573 1,923,143 6,177,364
1985 43,561,434 5 ,963,411 2,093,975 5,895,407
1986 47,049,701 4,427 ,014 1,973,670 5,718,196 '
Source: Administrative Services Department, City of Huntington Beach ,
Note: Includes General, Special Revenue, Capital Projects and Debt Service Funds.
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' EXHIBIT A
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' Charges
From Other For Current Other
Agencies Services Revenue Total
$ 8,915,766 $ 942,760 $ 109,258 $ 38,438,457
' 10,495,618 938,182 168,997 43,456,230
12,320,144 950,674 182,735 39,887,841
9,294,178 1,158,294 314,760 42,961,317
11,402,686 1,488,964 374,249 53,293,988
9,109,290 1,316,278 529,704 53,535,967
' 7,954,059 . 2,917,449 1,179,902 57,990,518
9,937,325 2,009,901 1,052,519 66,013,849
' 12,888,344 2,161,424 364,156 72,928,151
14,143 ,061 2,525,401 735,484 76,572,527
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CITY. OF HUNTINGTON BEACH
EXHIBIT B
GOVERNMENTAL FUND TYPES - EXPENDITURES BY FUNCTION
(Continued)
Last Ten Fiscal Years
Fiscal City City - City City Administrative
' Year _ Council Administration Treasurer Attorney Clerk Services
1977 $ 65,369 $ 2,532,247 $ 1,176,259 $. 270,244 $ 102,980 - $ 931,566
' 1978 59,403 3,845,700 866,716 296,813 154,415 495,612
1979 .37,463 3,7599877 1,352,898 373,891 107 ,347 541,326
' 1980 48,409 1,941,152 861,840 349,993 163,533 626,152
1 1981 80,993 402,983 1,027,518 435,102 143,289 1,681,625
1982 77,403 399,402 157 ,703 572,251 193,563 2,059,688
' 1983 97,804 498,373 264,221 629,000 165,076 2,140,377
1984 111,048 480,390 141,158 729,693 163,473 2,362,261
1985 128,635 730,966 267,882 806,146 194,834 2,558,796
1986 90,029 629,890 286,648 644,685 163,608 2,600,737
Source: Administrative Services Department, City of Huntington Beach
' NOTE: Includes General, Special Revenue, Capital Projects and Debt Service Funds.
' (CONTINUED)
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CITY OF HUNTINGTON BEACH ,
GOVERNMENTAL FUND TYPES - EXPENDITURES BY FUNCTION '
(Continued)
Last Ten Fiscal Years '
Fiscal Development Community Public
—Year _Services Fire Police Services Works '
1977 $ 1,324,576 $ 4,360,865 $ 7,596,721 ' $ 3,706,317 $ 4,528,276
1978 1 ,462,298 4,711,161 8,931,202 4,183 ,316 4,753,345 '
1979 1 ,359,868 5,658,406 9,445,272 3,788,705 4,502,434
1980 1 ,552,333 6,059,038 10,879,198 2,654,006 5,442,196 1
1981 1,574,076 6,861,735 11 ,721,106 4,339,820 8,779,723
1982 1,681,481 7,315,498 13,366,919 4,404,602 9,706,874
1983 1,631,693 7 ,758,422 14,103,479 5,028,173 10,989,138 ,
1984 1 ,632,865 8,568,812 15,601,080 . 5 ,070,115 12,528,418
1985 1,759,542 9,493,834 17 ,122,642 5,286,948 13,651,510 '
1986 1 ,773,596 10,251,710 18,744,618 5 ,668,499 15,045,519 '
Source: Administrative Services Department, City of Huntington Beach
Note: Includes General, Special Revenue, Capital Projects and Debt Service Funds. ,
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EXHIBIT B
rHousing and
Community Non- Capital Debt
' Development Departmental Outlay Service Total
$ 57,307 $ 2,166,148 $ 4,340,816 $ 504,302 $ 33,663,993
' 49,960 2,497,049 8,867,086 504,375 41,678,451
52,005 4,687,607 5,233,229 504,746 41,405,074
65,024 5 ,644,931 9,627,769 503,986 46,419,560
' 71,146 5,177,413 8,724,986 502,588 51,524,103
68,697 4,009,907 8,859,891 470,986 53,344,865
79,852 4,058,277 9,639,227 469,006 57,552,118-
685,654 3,740,992 8,620,833 1,830,149 62,266,941
966,384 4,867,215 7 ,873,719 1,896,104 67,605,157
3,276,949 6,295,596 11 ,791,250 1,846,950 79,110,284
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CITY OF HUNTINGTON BEACH ,
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Secured Taxes '
Fiscal Total Total Delinquency
Year Levy Collections Amount Percent
1977 $ 9,982,983 $ 9,844,450 $ 116,794 1.17
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 ,
1983 11 ,405,210 11,116,699 288,511 2.53
1984 11 402,791 11,664,690 430,471 3.78
1985 12,418,398 11,633,797 424,700 3.42 '
1986 13,607,853 12,780,632 452,047 3.32
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Source: Administrative Services Department, City of Huntington Beach
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EXHIBIT C
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' Unsecured Taxes
Total Total Delinquency
Levy Collections Amount Percent
' $ 549,994 $ 538,370 $ 6,791 1.23
' 142,013 711,519 30,534 .4.11
561,420 537,307 24,113 4.30
861,976 839,468 22,508 2.61
827 51.68 789,078 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
1,032,103 955,100 33,094 3.21
1,130,254 1,059,541 39,631 3.51
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CITY OF HUNTINGTON BEACH '
GENERAL BONDED DEBT RATIOS
Last Ten Fiscal Years '
Percent ,
Assessed of
General Market Debt to
Fiscal Bonded Value* Assessed '
Year Debt (in 1,OOOs) Valuation Population
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
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 ,
1986 3,165,000 7 ,375,477 .04 184,280
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Source: Administrative Services Department, City of Huntington Beach ,
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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' EXHIBIT D
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' Percent of
Debt Service
Bonded to Total
Debt Debt Service General Fund
Per Capita Principal Interest Total Expenditures
' $ 33.08 $ 190,000 $ 310,450 $ 500,450 1.9
31.12 200,000 301,925 501 ,925 1.7
28.73 210,000 292,437 502,437 1:5
1 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
17.17 260,000 205,500 465,500 .7
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CITY OF HUNTINGTON BEACH EXHIBIT E
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
Metropolitan '
Basic Orange School Water
Year Levy City County District District Others Total '
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
1984-85 1.00000 .05630 .00032 .09962 .01560 .00177 1.17361 1
1985-86 1.00000 .05565 .00030 .09329 .01640 .00161 1.16725 '
Source: County of Orange
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' EXHIBIT F
CITY OF HUNTINGTON BEACH
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
June 30, 1986
1985-1986 Assessed Valuation: $7,360,328,556 (after deducting $51,461,552
redevelopment tax allocation increment)
Amount
Percent Outstanding
Applicable June 30, 1986
DIRECT AND OVERLAPPING BONDED DEBT:
Orange County 8.243 $ 192,061
Orange County Building Authorities 8.243 3,670,092
Orange County Flood Control District 8.246 902,937
Metropolitan Water District 1.698 9,075,334
Municipal Water District of Orange County
Water. Facilities Corporation 10.719 7,760,556
' Orange County Sanitation District #3 11.258 188,458
Orange County Sanitation District #11 99.883 351,588
Coast Community College District Authority 30.807 5,589,930
Los Alamitos Unified School District 2.103 19,557
Huntington Beach Union High School District 71.102 2,189,941
Fountain Valley School District 31.827 119,351
Huntington Beach School District 96.788 1,834,132
' Ocean View School District (Various issues) 92.560-92.832 2,028,284
Westminster School District 28.872 10,105
City of Huntington Beach 100.000 3,165,000
' City of Huntington Beach Building Authorities 100.000 11,910,000
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT 49,007,326
' Less: MWDOC Water Facilities Corp. (100% self-supporting) 7,760,556
Orange County Sanitation District #3
(100% self-supporting) 188,458
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $ 41,058,312
' RATIOS TO ASSESSED VALUATION:
Direct Debt ($15,330,000) 0.21%
Total Gross Debt 0.67%
Total Net Debt 0..56%
SHARE OF AUTHORIZED AND UNSOLD BONDS:
Metropolitan Water District $ 4,499,700
' Fountain Valley School District $ 1,574,800
Ocean View School District $ 3,888,732
STATE SCHOOL BUILDING AID REPAYABLE AS OF JUNE 30, 1985: $37,152,896
Source: California Municipal Statistics, Inc. and Administrative Services
Department, City of Huntington Beach
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EXHIBIT G ,
CITY OF HUNTINGTON BEACH
COMPUTATION OF LEGAL DEBT MARGIN
June 30, 1986
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Assessed Valuation $ 7,360,328,556
Debt limit: 15% of assessed value $ 1,104,049,283 ,
Amount of debt applicable to debt limit:
Total bonded debt $ 3,165,000
Less net assets in debt service fund 59,619
Total amount of debt applicable
to .debt limit 3,105,381
Legal Debt Margin $ 1,100,943,902 ,
Source: Administrative Services Department, City of Huntington Beach
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CITY OF HUNTINGTON BEACH '
WATER REVENUE BOND COVERAGE
Last Ten Fiscal Years
Expenses Net Revenue '
(Excluding Available
Fiscal Total Interest and for Debt
Year Revenues Depreciation) Service
1976-77 $ 4,333,253 $ 2,597,350 $ 1,735,903
1977-78 4,951,770 3,496,631 1,455,139 '
1978-79 5,539,891 3,653,791 1,886,100
1979-80 6,082,925 3,643,233 2,439,692
1980-81 5 ,814,133 4,780,478 1,033,655
1981-82 6,557,815 5,286,338 1,271,477
1982-83 6,521,826 6,255,114 266,712 ,
1983-84 7 ,035,318 6,657,552 377,766
1984-85 8,049,892 7,687,105 362 ,787
1985-86 8,650,971 8,760,034 (109,063)
Source: Administrative Services Department, City of Huntington Beach ,
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' EXHIBIT H
_ Debt Service Requirements
' Principal Interest Total Coverage
$ 110,000 $ 110,012 $ 210,012 8.3
120,000 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
58,000 39,631 97 ,631 -
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EXHIBIT I ,
CITY OF HUNTINGTON BEACH
CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSITS
Last Ten Fiscal Years
Bank '
Number Estimated and Savings
of Valuation and Loan
Fiscal Building Percent of New Percent Deposits. . Percent '
Year Permits Change Construction Change (in 000's) Change
1976-77 6,939 - $179,328,608 - $ 607,297 ,
1977-78 6,187 (10.8) 150,287,067 (16.2) 714,203 17.6
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
1980-81 3,230 (19.5) 108,794,271 18.4 1,045,345 9.4 ,
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
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 2,033,763 12.9
1985-86 3,173 .3 133,578,080 (6.2)
*Bank and savings and loan deposits statistics for 1985-1986 were not
available in time for this report. ,
Source: City of Huntington Beach, Development Services Department and the
Findley Reports on California Financial Institutions. ,
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' EXHIBIT J
CITY OF-HUNTINGTON BEACH
PRINCIPAL PRIVATE EMPLOYERS
(Alphabetical Order)
June 30, 1986
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 BEACH
INSURANCE IN FORCE i
June 30, 1986 '
Cal-Surance - Broker '
Helicopter Hull & Liability
1984 & 1985 Hughes 500E
Helicopter Liability -
1964 & 1985 Bell 47's '
Helipad Liability
Watercraft Hull & Liability
Watercraft Hull & Liability
Heliocopter B.J. Excess '
Excess Workers' Compensation
Robert F. Driver - Broker ,
Fire, Ext. , Cov. , Flood, Earthquake ,
Fire, Ext. , Cov. , Flood, Earthquake
Fire, Ext. , Cov. , Flood, Earthquake
Fire, Ext. , Cov. , Flood, Earthquake
Fire, Ext. , Cov. , Flood, Earthquake '
Fire, Ext. , Cov. , Flood, Earthquake
Fire, Ext. , Cov. , Flood, Earthquake
Fire, Ext. , Cov. , Flood, Earthquake '
Fire, Ext. , Cov. , Flood, Earthquake
Boiler and Machinery
Public Official & Employee
Faithfull Performance Bonds ,
Robert E. French - Broker '
Medical Stop Loss
Employee Travel Accident Policy '
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Sources Administrative Service Department, City of Huntington Beach ,
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' EXHIBIT K
t
tAnnual
Insurance Company Policy No. Expires Premium
' Transamerica Insurance Co. 1200281 04/01/87 $ -120,925
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Transamerica Insurance Co. 1200280 04/01/87 10,438
tTransamerica Insurance Co. 1201241 04/01/87 3,263
St. Paul Insurance Co. 388FA6887 04/01/87 6,750
' Albany Insurance MH160 04/01/87 5,700
Southern Marine & Aviation 14179 04/01/87 19,361
Employers' Reinsurance Co. C-35059-R 07/01/87 61,264
RLI SFCO2360 06/05/87 100,729
Lloyds 1617 06/05/87 103,200
Commonwealth RXMP65447 06/05/87 51,600
RLI SFC002361 06/05/87 73,532
' Lloyds 1618 06/05/87 48,666
Progressive CF4678277 06/05/87 40,292
Allianz FC5022962. 06/05/87 20,146
Commonwealth RXMP65448 06/05/87 20,640
Arkwright Boston Manufacture Mutual PMMOIM02434 06/05/87 12,591
Kemper (American Manufacture) 3XN01745501 04/01/89 10,328
' INA Insurance CPBJ0110986 0-7/01/87 9,638
American General 19086 04/30/87 74,300
' Provident Life GTA-1116 07/01/87 625
$ 793,988
1
' -90-
t
'CITY OF HUNTINGTON BEACH EXHIBIT L
DEMOGRAPHIC STATISTICS ,
City Population
Percent Square Orange County as a Percent of ,
Year Population Increase Miles Population County Population
1910 815 - 3.57 34,436 2.3
1920 1,687 107.0 3.57 61,375 2.7
1930 3,690 118.0 3.57 118,647 3.1
1940 3,738 1.3 3.57 130,760 2.8
1950 5,158 38.0 4.72 216,224 2.4 ,
1960 11,492 122.8 23.47 703,925 1.6 t
1970 116,400 912.9 26.73 1,420,386 8.2
1980 172,200 47.9 27.20 1,931,570 8.9 '
1981 173,393 1.7 27.20 1,972,724 8.8
1982 175,714 1.3 27.20 1,993,831 8.8
1983 178,706 1.8 27.20 2,036,390 8.8 '
1984 179,990 .7 27 .20 2,066,498 8.7
1985 180,000 .0 27.20 2,074,326 8.7 '
1986 184,280 2.4 27.20 2,130,428 8.6
Source: Department of Development Services, City of Huntington Beach '
1
-91-
1
CITY OF HUNTINGTON BEACH EXHIBIT M
' MISCELLANEOUS STATISTICS
Jwm�
' Year of incorporation 1909
Form of government Charter City - Council
City Administrator
Area 27.2 square miles
Populat1 184 280
�iles of streets �24 mi es
rostreet lights 1275
Fire protection:
' Number of stations 7
Number of firefighters and officers 132.
Police protection:
Number of stations 1
Number of police officers 206
' 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
1 Full Time Employees 931
Source: Administrative Services Department, City of Huntington Beach
1 .
' -92-
1
1 •
tCOMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF HUNTINGTON BEACH, CALIFORNIA
' FISCAL YEAR ENDEDJUNE 309 1986
' PREPARED BY
ADMINISTRATIVE'ISERVICES DEPARTMENT
CITY OF HUM1NTINGTON BEACH
' CITY OF HUNTINGTON BEACH
' COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal year ended June 30, 1986
' Table of Contents
' INTRODUCTORY SECTION
' Page
Number
' Table of Contents
Letter of Transmittal iv-xxi
Elected and Administrative Officials xxii
Organizational Chart xxiii
FINANCIAL SECTION
Schedule
' Accountants' Report 1
General Purpose Financial Statements:
1 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 - 36
' Financial Statements of Individual Funds and Account Groups:
Genera]- Fund:
' Comparative Balance Sheet B-1 37
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual B-2 38
-i-
t
Page
Schedule Number '
Special Revenue Funds:
Combining Balance Sheet C-1 39 - 40 '
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 41 - 42
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual C-3 43 - 47 ,
Debt Service Funds:
Combining Balance Sheet D-1 48 - 49 '
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 50 - 51
Combining Statement of Revenues, Expenditures '
and Changes in Fund Balances - Budget and Actual D-3 52 - 54
Capital Projects Funds:
Combining Balance Sheet E-1 55 - 56 '
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances E-2 57 - 58
Enterprise Funds:
Combining Balance Sheet F-1 59 - 60
Combining Statement of Revenues, Expenses and '
Changes in Retained Earnings F-2 61 - 62
Combining Statement of Changes in Financial Position F-3 63 - 64
Internal Service Funds: ,
Combining Balance Sheet G-1 65
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings G-2 66 '
Combining Statement of Changes in Financial Position G-3 67
Agency Fund: ,
Statement of Changes in Assets and Liabilities H-1 68
General Fixed Assets Account Group: '
Statement of General Fixed Assets I-1 69
Schedule of General Fixed Assets by
Function and Activity I-2 70
Schedule of Changes in Fixed Assets by '
Function and Activity I-3 71
General Long-Term Debt Account. Group:
Statement of Changes in General Long-Term Debt J-1 72 '
t
STATISTICAL SECTION
Page
Exhibit Number
' Governmental Fund Types - Revenues by Source -
Last Ten Fiscal Years A 73 - 74
' Governmental Fund Types - Expenditures by Function -
Last Ten Fiscal Years B 75 - 77
Property Tax Levies and Collections -
' Last Ten Fiscal Years C 78 - 79
General Bonded Debt Ratios - Last Ten Fiscal Years D 80 - 81
Property Tax Rates - All Overlapping Governments -
Last Ten Fiscal Years E 82
' Computation of Direct and Overlapping Bonded Debt F 83
Computation of Legal Debt Margin G 84
Water Revenue Bond Coverage- Last Ten Fiscal Years H 85 - 86
' Construction Activity and Bank and Savings and
Loan Deposits - Last Ten Fiscal Years I 87.
Principal Private Employers J 88
Insurance in Force K 89 - 90
Demographic Statistics L 91
Miscellaneous Statistics M 92
1
;, CITY OF HUNTINGTON BEACH
IB
2000 MAIN STREET CALIFORNIA 92648
November :10, 1986
The Honorable Mayor and City Council Members
City of Huntington Beach, California
' Mayor and Councilmembers:
We are pleased to submit to you the Comprehensive.Annual Financial Report for the City
of Huntington Beach for the fiscal year ending June 30, 1986. 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
' identification of 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-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.
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. A
department head can transfer funds_ within like object categories within the same
department. The City Administrator can, transfer funds from one object category to
' another without increasing the total budget of any department. Any changes to a total
departmental budget must be .approved by the City Council. 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 re appropriated into the new fiscal year.
-iv-
REPORTING ENTITY AND ITS SERVICES
Huntington Beach is a full-service City, including public safety, parks and recreation, '
water services, planning and zoning, public works and related administration.
This report includes the financial activity of certain separate legal entities. These '
entities arf,-s
HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION - This entity was '
formed in 1970 to issue bonds to finance the construction of the Civic Center
and Central Library complexes.
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH This t
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 This entity
was formed in 1967 to 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. '
Component unit financial reports have also been prepared for the Huntington Beach Public
Facilities Corporation and the Redevelopment Agency of the City of Huntington Beach. ,
These reports show the financial activity of these entities on a "stand-alone" basis.
Copies of these reports are available from this office.
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 $3,544,376 or 4.9% over the prior year and a explanation of
the fluctuations:
Percent '
Amount Amount Change
85/86 84/85 from 84/85
Property Taxes 19,427,644 17,638,321 10.1 %
Other Taxes 27,622,057 25,923,113 6.6% '
Licenses and Permits 4,427,014 5,963,411 (25.8%)
Fines, Forfeitures & Penalties 1,973,670 2,093,975 (5.7%)
From Use of Money & Property 5,718,196 5,895,407 (3.0%) '
From Other Agencies 14,143,061 12,888,344 9.7 %
Charges for Current Service 2,525,401 2,261,424 11.7%
Other 135,484 364,156 101.2%
Total 7.6„5720527 $73xO28,151 4.9 % '
Property Taxes: The increase in property tax revenues is due. to normal reassessments of
property under the guidelines of Article 13=A -of the California Constitution and new
' residential and commercial development.
Other Taxes - Normal increases.
' Licenses and Permits: Fiscal year 1984/85 was an exceptional year for new residential
and commercial development. The decrease is more the result of a leveling off of new
development.
' Fines, Forfeitures and Penalties: A small decrease due to change in law resulting in lesser
amounts being forwarded to the City from the County.
From Use of Money and Property: The slight decrease is due largely to lower interest
rates.
' From Other Agencies: Normal increases.
Charges for Current Service - Normal Increases.
' Other Revenue: Increases due to more miscellaneous receipts such as miscellaneous
property damage reimbursements.
Below is an analysis of general governmental expenditures which increased by 10,780,128
or 15.9% for the year and a comparison with the prior year followed by an explanation of
' significant fluctuations:
Percent
Amount Amount Change
' 85/86 84/85 from 84/85
City Council 90,029 128,635 (30.0%)
' City Administrator 629,890 730,966 (13.8%)
City Treasurer 286,648 267,822 7.0 %
City Attorney 644,685 806,146 (20.0%)
' City Clerk 163,608 194,834 (16.0%)
Administrative Services 2,600,737 2,558,796 1.6%
Development Services 1,773,596 1,759,542 .1 %
' Fire 10,251,710 9,493,834 8.0%
Police 18,744,618 17,122,642 9.4%
Community Services 5,668,499 5,286,948 7.2%
Public Works 15,045,519 13,651,510 10.2%
' Housing & Community Dev. 2,051,949 966,384 112.3 %
Non-Departmental 6,795,596 4,867,215 29.4%
Capital Outlay 11,791,251 7,873,719 49.6%
' Debt Service 1,846,950 1,896,104 (3.2%)
Total $78,385,285 $67,605,157 15.9
' The large increase in total general governmental expenditures is due to increased activity
in the Redevelopment Agency. Major purchases of property are needed to carry out the
C:ity's redevelopment plans and the City was able to obtain a better price on certain
property by purchasing the land this year rather than waiting for future years. The City
' utilized a cost allocation plan to allocate the redevelopment related costs of the various
' .-vi-
cityde a;tments. The total of these allocations was 1 259 814. These allocations ,
P $ >
caused the decreases in the City Council, City Administrator, City Attorney and City
Clerk's departments. This also caused the smaller than expected increases in the '
Administrative Services and Development Services departments.
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 (lousing 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. A rate increase was enacted in April, 1986 which should enable the Water
Utility fund to break even in fiscal year 1986/87. '
Meadowlark Emerald Cove
Water Utility Golf Course Housing
1986 1985 1986 1985 1986 1985 '
Operating Revenues 89172,637 7,508,521 218,437 209,425 5759826 168,525
Operating Income
(Loss) (1,7619013) (1,368,003) 185,850 168,483 265,509 43,033
Net Income (Loss) (1,336,313) (882,781) 105,213 75,826 26,484 1209715 '
Income Available ,
for Debt Sorvice (169,063) 362,782 263,502 244,143 . 502,686 120,715
Debt Service 2009622 202,718 150,000 150,000 437,000 N/A
Debt Service
Coverage N/A 1.79 1.76 1.40 1.15 N/A
Below is a table comparing the performance of the City's internal service funds to the prior ,
year.
Self Insurance Equipment Replacement ,
1986 1985 1986 1985
Operating Revenues 5,543,657 2,352,842 1,658,402 477,305 t
Operating Income (235,903) (1,947,394) 1,498,235 385,853
Net Income 158,722 (1,5729809) 1,826,693 601,869 '
Both of the City's internal service fund showed a net income this year. The large net
income in the equipment replacement fund is intended to help that fund build up a large ,
cash balance for anticipated major equipment replacement needs in the next few years.
0
a�
y
Ci
�: ,
M�1
P4
1
r DIEHL, EVANS AND COMPANY
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
•M/IN G. PETERS'I-.P.A. CERTIFIED PUBLIC ACCOUNTANTS OTHER OFFICES AT:
*DONALD H. PETERSON, C.P.A.
*DONALD E. CALLARA' C.P.A. 1910 NORTH BUSH STREET 2965 ROOSEVELT STREET
r
`CARLSBAD. CALIFORNIA 9200E-23B9_
' .r'n h.. PETER SCHERER. . SANTA AN A,.CALIFORNIAGALIFORNIA 92706-2894
ROONEYROONEv K- M[DANIE L,C.P.A.. (714) 542-4453 16191 729.2343
'RALPH H. WEINTRAUB, '-:.PA. 120 WEST WOODWARD AVENUE
'PHILIP H. HOLTKAMP, CPA. ESCONDIDO, CALIFORNIA 92025-9990
'THOMA5 M. PERLOWSKI. C.P.A.
r EDWARU GRO_DSKY, C.P.A. (6191 741-3141
ONE CIVIC PLAZA, SUITE 265
ELLIS C. DIEHL. C.P.A. IRETIRED) NEWPORT BEACH, CALIFORNIA 92660
BRYN B. EVANS, C.P.A.(RETIRED) September 5, 1986
A 17141 644-6156
PROFESSIONAL CORPORATION
r
rACCOUNTANTS' REPORT
r
rCity- Council
City" of Huntington Beach
Huntington Beach, California
We have examined the general purpose financial statements of the City of
Huntington Beach, as of and for 'the year ended June 30, 1986 , 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
rin the circumstances.
In our opinion, the general purpose financial statements referred to above
r present fairly the financial position of the City of Huntington Beach at June
30, 1986 , 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.
Our examination was made for the purpose of forming an opinion on the general
purpose financial statements taken as a whole: The combining, individual fund
and individual account group financial statements are presented for purposes of
additional analysis and are not ;a required part of the general purpose financial
' statements of the City of Huntington Beach. Such information has been subjected
to the auditing procedures applied in the examination of the general purpose
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the general purpose financial statements taken as. a
r 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.
1
r -1-
CITY OF HUNTINGTON BEACH '
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
.June 30, 1986 '
Governmental Fund Types '
Special Debt Capital
ASSETS General Revenue Service Projects
Cash and investments '
(Notes lc and 3) $ 9,401,307 $ 13,518,325 $ 543,324 $ 2,002544
Cash with fiscal agent (Note 3) - - 6,233,240 782:238
Taxes receivable (Note lg) 486,185 - 13,751 -
Accounts receivable 344,429 - - 6,509 '
Interest receivable 51,763 63,038 74,655 10,890
Due from other funds (Note 8) . 6,788,235 5,124,605 -
Due from other agencies 150,218 626,961
Deposits and other assets 179,200 - - -
Property, plant and equipment,
net (Notes ld and 12)
Amount available in debt service
funds - - - -
Amount to be provided for payment
of long-term debt
TOTAL ASSETS $ 17,401,337 $ 19,332,929 $ 6,864,970 $ 2,802,181
LIABILITIES AND FUND EQUITY
LIABILITIES:
Accounts payable $ 1,180,524 $ 447,260 $ - $ 147,155
Accrued payroll 1 ,933,167 17,663 - 7,983 '
Deposits 558,628 66,408 - 25,000
Due to other funds (Notes 8 & 10) - - - -
Deferred compensation (Note 4) - - - -
Claims payable (Note 7) -
Deferred revenue (Note 5) 1 ,298,538 4,060,122 - -
Accrued interest payable - - - -
Bonds payable (Notes 10 and 11) -
Other long-term debt
(Notes 10 and 11) - - - -
Compensated absences payable ,
(Notes le, 10 and 11) - - - -
TOTAL LIABILITIES 4,970,857 4,591,453 - 180,138
FUND EQUITY: '
Contributed capital - - - -
Investment in general fixed
assets
Retained earnings:
Reserved (Note 13) - - - -
Unreserved (deficits) - - - -
Fund Balances: ,
Reserved (Note 13) 8,832,663 2,928,693 6,864,970 2,622,043
Unreserved:
.Designated (Note 13) - 2,877,449 - - '
Undesignated 3,597,817 8,935,334 - -
Total retained earnings/
fund balances 12,430,480 14,741,476 6,864,970 22622,043 ,
TOTAL FUND EQUITY 12,430,480 14,741,476 6,864,970 2,622,043
TOTAL LIABILITIES AND
FUND EQUITY $ 17,401,337 $ 19,332,929 $ 6,864,970 $ 2,802,181
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 1986 1985
' $ 5,699,078. $6,678,167 $ - $ - $ - $ 37,842,745 '$ 42.,366,651
1,492,370 7,134,577 - - 15,642,425 7,846,335
499,936 482,882
1 ,283,623 14,645 1 ,649,206 2,677 ,640
33,278 32,109 - - - 265,733 358,692
24,428 - - - - 11 ,137 ,268 6,690,523
' _ = 777,179 1,335,656
147,265 326,465 772,201
' 36,011,176 1 ,812,012 - 72,93i ,969 - 110,761,157 102,501,938
6,864,970 6,864,970 5,892,855
- _ - - - 23,738,756 2317382756 19,516,496
$44,543,953 $8,536,933 $7,281 ,842 $72,93,'1969 $30,603,726 $210,305,840 $190,441,869
1
$ 944,235 $ 29 ,048 $ - $ - $ - $ 2,748,222 $ 2,575,017
62,428 34,463 _ _ _ 2,055,704 1,686,27.1
755,342 1,405,378 1 ,536,303
111 ,411 - - - 11,825,857 11 ,937 ,268 6,690,523
7 ,253,342 _ - - 7 ,253,342 5,703,237
,. - 53625,000 - - - 5,625,000 5,186,000
- - - - - 5 ,358,660 4,403,226
84,544 - - - - 84,544 90,405
' 1,053,000 - - 15,075,000 16,128,000 17,146,000
6,600,249 - 28,500 - 425,000 7 ,053,749 7 ,221 ,260
' 103,109 - - - 3,277,869 3,380,978 3,088,630
9,714,318 516883511 7 ,281,842 - 3096035726 63,030,845 5593265872
34,230,204 2 ,500,000 - - 36,730,204 34,935 ,226
' - - - 72,937 ,969 - 72,937 ,969 66,617 ,843
94,231 - - - - 872,231 570,449
505,200 348,422 - - - 75,622 (350,307)
' - - - - - 21 ,248,369 15,285 ,318
2,877,449 1,150,431
12,533,151 162906,037
599,431 348,422 - - - 3-7,606,822 322770,691
34,829,635 2,848,422 72,937 ,969 - 147,274,995 1351114,997
$44,543,953 $8,536,933 $71281,842 .$72,931,969 .$30,603,726 $210,305,840 $190,441,869
-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, 1986 '
General
Fund
REVENUES: t
Property taxes (Note lg) $ 18,456,192
Other taxes 27 ,622,057
Licenses and permits 3,042,450 '
Fines, forfeitures and penalties 1 ,973,670
From use of money and property 3,782,431
From other agencies 7,125 ,470 '
Charges for current services 2,525,401
Other 735,484
TOTAL REVENUES 65,263,155
EXPENDITURES: ,
Current:
City Council 90,029
City Administrator 488,064
City Treasurer 286,648
City Attorney 644,685
City Clerk 163,608 '
Administrative services 2,600,737
Development services 1,773 ,596
Fire 10,236,204 '
Police 18,729,315
Housing and Community Development
Community services 5 ,585 ,738
Public works 14,911,530 '
Non-departmental 6,795 ,596
Capital outlay 2,186,520
Debt Service (Note 10) : '
Principal -
Intere3t and fiscal charges -
TOTAL EXPENDITURES 64,492,270
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 770,885 '
OTHER FINANCING SOURCES (USES) :
Operating transfers in 1 ,221 ,368 '
Advances from General Fund (Note 10) -
Proceeds of long-term debt (Note 10) 216,100
Operating; transfers out (1,423,950)
TOTAL OTHER FINANCING SOURCES (USES) 13,518 ,
EXCESS OF REVENUES AND OTHER SOURCES OVEF (UNDER)
EXPENDITURES AND OTHER USES 784,403 ,
FUND BALANCE - BEGINNING OF THE YEAR 11 ,646,077
Prior period adjustments
Residual equity transfers in -
Residual equity transfers out -
FUND BALANCE - END OF YEAR $ 12,430,480 '
See accountants' report and notes to financial statements .
-4- ,
SCHEDULE A-2
1
Special Debt Capital Totals
Revenue Service Projects (Memorandum Only)
Funds Funds Funds 1986 1985
$ $ 870,134 $ 101,318 $ 19,427 ,644 $ 17,638,321
- - 27,622,057 25,9235113
1 ,384,564 _ = 4,427 ,014 5,963,411
1,973,670 2,093,975
1 ,246,023 527 ,606 162 ,136 5,718,196 5,895,407
7,017,591 - - 14,143,061 12,888,344
' - _ _ 2,525,401 2,261,424
_ 735,484 364,156
9,648,178 1,397,740 263,454 76,572,527 73,028,151
- - - 90,029 128,635
' 141 ,826 _ _ 629,890 730,966
286,648 267,882
- 644,685 806,146
_ 163,608 194,834
2,600,737 2,558,796
- - - 1,773,596 1 ,759,542
15,506 - - 10,251 ,710 9 ,493,834
15,303 _ - 18,744,618 17 ,122 ,642
342,545 7 1 ,709,404 2,051,949 966,384
82,761 - - 5 ,668,499 5 ,286,948
133,989 - - 15,045,519 13,651 ,510
' - - - 6,795 ,596 4,867,215
9,085,352 - 519 ,379 11,791,251 7 ,873,719
- 960,000 - 960,000 960,000
-_ 886,950 - 886,950 936,104
9,817,282 1,846,950. 2,228,783 78,385 ,285 67,605,157
' (169,104) (449,210) (1,965,329) (1 ,812,758) (5,422,994)
' 2,000,O00 1 ,423,950 2 ,625 4,647 ,943 4,892,79.1
4,913,841 4,913,841 237 ,336
- - 216,100 -
(1,996,368) (2,625) (1 ,225,000) (4,647 ,943) (4,892,791)
3,632 1 ,421,325 3,691,466 5,129,941 237,336
' (165 ,472) 972,115 1 ,726,137 3,317 ,183 5,660,330
14,901,948 5 ,892,855 815,906 33,341,786 38,434,217
' - - .. . - - (3,460,462)
882,437
(8,174,736)
$ 14,741,4,b. $ 6,864,970 $ 2,622,043 $ 36,658,969 $ 33,341 ,786
-5-
CITY OF HUNTINGTON BEACH '
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES '
For the year ended June 30, 1986 '
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES: '
Property taxes (Note lg) $ 20,003,000 $ 18,456,192 $ (.1 ,546,808)
Other taxes 26,490,000 27 ,622,057 1,132,057
Licenses and permits 3,182,500 3:042,450 (140,050)
Fines, forfeitures and penalties 2,131,000 1 ,973,670 (157,330) '
From use of money .and property 4,213,200 3,782,431 (430,769)
From other agencies 6,107,900 7 ,125,470 1 ,017 ,570
Charges for current services 2,509,400 2,525,401 16,001 ,
Other 876,500 735,484 (141,016)
TOTAL REVENUES 65,513,500 65 ,263,155 (250,345)
EXPENDITURES: ,
Current :
City Council 88,708 90,029 (1 ,321)
City Administrator 534,314 488,064 46,250 ,
City Treasurer 298,037 286,648 111389
City Attorney 645,475 644,685 790
City Clerk 143,625 163,608 (19,983) ,
Administrative services 2,718,975 2,600,737 118,238
Development services 1 ,869,686 1 ,773,596 96,090
Fire 10,102,772 10,236,204 (133,432)
Police 19,241,487 18,729,315 512,172 '
Housing and Community Development - - -
Community Services 5 ,917,207 5 ,585 ,738 331,469
Public Works 15,766,862 14,911,530 855,332 '
Non-departmental 8,091,928 6 ,795 ,596 1 ,296 ,332
Capital outlay 2,295,469 2,186,520 108,949
Debt Service (Note 10) :
Principal - - - ,
Interest and fiscal. charges - - -
TOTAL EXPENDITURES 67 ,7149545 64,492,270 3,222,275
EXCESS OF REVENUES OVER '
(UNDER) EXPENDITURES (2,201,045) 770,885 2,971,930
OTHER FINANCING SOURCES (USES) : '
Operating transfers in 1 ,200,000 1,221,368 21 ,368
Proceeds from long-term debt (Note 10) 216,100 216,100 -
Operating transfers out (1 ,423,950) (1,423,950) -
TOTAL OTHER FINANCING ,
SOURCES (USES) (7,850) 13,518 21,368
EXCESS OF REVENUES AND OTHER SOURCES OVEI
.(UNDER) XXPENDITURES AND OTHER USES (2,208,895) 784,403 2,993 ,298 '
FUND BALANCES - BEGINNING OF THE YEAR 11,646,077 11 ,646,077 -
FUND BALANCES - END OF YEAR $ 9 ,4371.182 $ 12,430,480 $ 2,993,298
See accountants ' report and notes to financial statements. '
' SCHEDULE A-3
Special Revenue Funds Debt Service Funds
Variance - Variance -
Favorable Favorable
Budget _ Actual (Unfavorable) Budget Actual (Unfavorable)
$ - $ - $ - $ 860,400 $ 870,134 $ 9,734 -
2,643,000 1,209,130 (1,433,870)
' 778,000 1 ,246,023 468,023 714,000 527 ,606 (186,394)
6,731,000 7 ,017,591 286,591 - -
' 193,000 175,434 (17,566)
10,345,000 9,648,178 (696,822) 1,574,400 1,397,740 (176,660)
126,379 141,826 (15 ,447,) = _
15,269 15,506 (237' _ =
10,232 15,303 (5,021,'
143,768 82,761 61,007 - - -
205,493 342,545 (137,052) - - -
' 1,643,61.2 133,989 1 ,509,623 = _
17,087,8.)3 9,085,352 8,002 ,482 - - -
' - - - 960,000 960,000 -
- _ - - 896,706 886,950 9,756
' 19,232,6i6 9,817,282 9,415,355 13,856,706 1 ,846,950 9,756
(8,887 ,636) (169,104) (8,718,533) (282,306) (449,210) (166,904)
2,025,000 2 ,000,000 (25,000) 1 ,423,950 1 ,423,950 -
' ( 1.,975,000) ( 1 ,996,368) (21 ,3691 (2,625) (2 ,625) -
___ 501000 3 ,632 (40,369) 1 ,421,325 1 ,421,325 -
' (8,837 ,636) (165 ,472) 8,672,164 1 ,139,019 972,115 (166,904)
14,906,948 14,906,948 - 5 ,892,855 5,892,855 -
$ 6,069,312 $ 14,741,476 $ 8,672-,164 $ 7 ,031,874 $ 6,864,970 $(166,904)
(CONTINUED)
' -7-
'CITY OF HUNTINGTON BEACH SCHEDULE A-3
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND '
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (CONTINUED)
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES '
For the year ended June 30, 1986
Totals (Memorandum Only) ,
Variance -
Favorable
Budget Actual (Unfavorable) '
REVENUES:
Property taxes (Note lg) $ 20,863,400 $ 19,326,326 $ (1,537 ,074)
Other taxes 26,490,000 27 ,622,057 1,132,057
Licenses and _permits 4,065,500 4,427,014 361 ,514 '
Fines, forfeitures and penalties 2,131,000 1 ,973,670 (157,330)
From use of money and property 7 ,638,200 5 ,556,060 (2,082,140)
From other agencies 11,363,900 14,143,061 2,779,161
Charges for current services 2,509,400 2,525,401 16,001
Other 876,500 735 ,484 (141,016)
TIOTAL REVENUES 75,937,900 76,309,073 371,173 '
EXPENDITURES:
Current:
City Council 88,708 90,029 (1,321)
City Adminstrator 660,693 629,890 30,803 '
City Treasurer 298,037 286,648 11 ,389
City Attorney 645,475 644,685 790
City Clerk 143,625 163,608 (10,983) ,
.Administrative services 2,718,975 2,600,737 118,238
Development services 1 ,869,686 1 ,773,596 96,090
Fire 10,118,041 10,251 ,710 (133,669) '
Police 19,251,769 18,744,618 507 ,151
Housing and Community Development 205,493 342,545 (137,052)
Community services 6,060,975 5,668,499 392,476
Public works 17,410,474 15,045,519 2,364,955 ,
Debt service; principal 8,091,928 6,795,596 1 ,296,332
Capital outlay 19,383,302 11 ,271 ,872 8,111,436
Debt Service (Note 10) : ,
Principal 960,000 960,000 -
Interest and fiscal charges 896,706 886,950 9,756
TOTAL EXPENDITURES 88,803,887 76,156,502 12,647 ,385 '
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (12,865,987) 152,571 13,018,558
OTHER FINANCING SOURCES (USES) :
Operating; transfers in 4,648,950 4,645,318 (3,632)
Proceeds from long-term debt (Note 10) 216,000 216,100
Operating, transfers out (3,401,575) (3,422,943) (21,368) '
TOTAI.. OTHER F I.NANC I NG
SOURCES (USES) 1 ,463,475 1,438,475 (25,000)
EXCESS OF REVENUES AND OTHER SOURCES OVER '
(UNDER) EXPENDITURES AND OTHER USES (11 ,402,512) 1 ,591,046 12,993,558
FUND BALANCES - BEGINNING OF THE YEAR 32,445,880 32,445,880
FUND BALANCES - END OF YEAR 21 043 368 34 036 26 12 '$ $ ,9 $ ,993,558
See accountants' report and notes to financial statements. ,
-3-
' CITY OF HUNTINGTON BEACH SCHEDULE A-4
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS - ALL PROPRIETARY FUND -TYPES
' For the year ended June 30, 1986
' Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
OPERATING REVENUES:
Charges for services $ :: - $ 7,202,059 $ 7 ,202,059 $ 3,930,147
' Water sales 71912 ,216 _ 7 ,912,216 7,310,579
Rentals 781 ,077 781,077 377,950
Other 273,607 - 273,607 197,942
' TOTAL OPERATING
REVENUES 8,966 ,900 7,202,059 16,168,959 11,816,618
OPERATING EXPENSES:
' Water purchases 2,,881 ,891 - 2,881 ,891 1-1736,542
Administration 363 ,533 1,723,510 2,087,043 1.,697,666
Engineering 159 ,919 - 159,919 203,826
' Production 2,311 ,984 - 2 ,311 ,984 2,322 ,513
Maintenance 1 ,544,692 - 1 ,544,692 1,609,019
Water Meters 542,825 - 542,825 520,017
' Contribution to general fund in lieu of taxes 1 ,186,132 -
1,186,132 1,097,165
Workers compensation claims - 934,635 934,635 1,335,139
Employee medical claims _ 1,792,779 1,792,779 1,780,428
Liability claims 1,380,738 1 ,380,738 977,958
Depreciation (Note ld) 1 ,285,578 108,065 1,393,643 1,254,373
TOTAL OPERATING EXPENSES 10,276,554 5,939,727 16,216,281 14,534,646
OPERATING INCOME (LOSS) (1,309,654) 1 ,262,332 (47,322) (2,718,028)
' NON-OPERATING REVENUES
(EXPENSES):
t Interest income 681 ,201 723,083 1 ,404,284 1 ,244,372
Interest expense (629,251) (629,251) (183,524)
TOTAL NON-OPERATING '
' REVENUES (EXPENSES) 51 ,950 723,083 775,033 1 ,060,848
NET INCOME (LOSS) (1 ,257, 704) 1 ,985,415 - 727 ,711 (1,657,180)
RETAINED EARNINGS (DEFICLT) -
BEGINNING: OF YEAR 1 ,065,898 (1 ,636,993) (571,095) 1 ,086,085
' PRIOR PERIOD ADJUSTMENT (NOTE 15) 791,237 - 791,237 -
RETAINED EARNINGS (DEFICIT) -
END OF YEAR $ 5991431 $ 348,422 $ 947,853 $ (571,095)
See accouniants ' report and -notes to financial statements.
-9-
'CITY OF HUNTINGTON BEACH SCHEDULE A-5
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY .FUND TYPES
For the year ended June 30, 1986 ,
Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
SOURCES 01' WORKING .CAPITAL: '
Operations:
Net loss $(1,257,704)$ 1 ,985,415 $ 727,711 $(1,657,180)
Items not requiring working ,
capital:
Depreciation. 1,285,578 1085065 1093,643 1,254,373
Working capital provided
(used) by operations 27 ,874 2,093,480 2,121,354 (402 ,807) t
Increase in self-insurance
claims payable - - - 719,000
Sale of plant, property and ,
equipment 2,770 439,000 441,770 -
Contributions 1 ,294,978 500,000 1,794,978 4,130,022
Sale of Certificates of
Participation - - - 4,600,000
Reduction in .restricted assets 34,005 - 34,005 -
TOTAL SOURCES OF WORKING
CAPITAL 1 ,359,627 3,032,480 4,392,107 9,046,215 '
USES OF WORKING CAPITAL:
Increase in property, plant ,
and equipment 1 ,636,756 1,698,750 3,335,506 5 ,547 ,846
Increase in restricted assets 66,892 - 66,892 839,129
Decrease in long-term debt 140,076 - 140,076 226,570 '
Decrease in compensated absences
payable 26,596 - 26,596 802
TOTAL USES OF WORKING CAPITAL =870,320 1,698,750 3,569,070 61614,347
NET INCREASE (DECREASE) IN ,
WORKING CAPITAL $ (510,693)$ 1,333,730 $ 823,037 $ 2,431,868
ELEMENTS OF NET INCREASE (DECREASE',) '
IN WORKI14C CAPITAL:
Cash and investments $ (532,304)$ 1 ,293,765 $ 761 ,461 $ 3,128,398 '
Intere:;t receivable (19,637) (386) (20,023) 113
Accounes receivable (50,020) 6,147 (43,873) 72,194
Due from other funds 2 ,220 - 2,220 (3,219) ,
Prepaid expenses and other assets (1.36,010) - (136,010) 206,108
Accounes payable and accrued
payroll (24,905) 34,204 9 ,299 (255,462)
Intere:;t payable 215,450 - 215,450 (35 ,899) ,
Deferred revenue 22,208 - 22,208 (22,208)
Due to other funds - - - (320,045)
Due to other agencies - - - (90,082) ,
Deposits 25 ,768 - 25,768 (244,482)
Current portion of long-term debt (13,463) - (13,463) (3,548)
NET INCREASE (DECREASE) IN
WORKING CAPITAL $ (510,693)$ 1,333,730 $ 823,037 $ 2,431 ,868 ,
See accountants ' report and notes to financial statements.
-10-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
June 30, 1986
' 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 services provided by one
' departme:it to the other_departments of the City on a cost-reimbursement
basis.
' Fiduciary Find '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-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986 '
1. . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) : '
a. Description of Fund Types and Account Groups (Continued) :
Account Groups: '
The General Fixed Assets Account Group is used to maintain control and
cost information on capital assets owned by the City, other than those
of the proprietary fund types.
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:
Governmental fund types and agency funds use a modified accrual basis of
accounting except that assets of the Employee Deferred Compensation
Agency Fund are reported' at market value rather than cost, in accordance '
with GASB Statement 2.. Revenues are recognized when they are
"susceptible to accrual", that is, measurable and available to finance
expenditures of the current period. Accrued revenues include property '
taxes received within 60 days after year end (See Note lg) federal and
state grants and subventions, interest, and certain charges for current
services. Revenues which are not considered susceptible to accrual '
include certain licenses, permits , fines, forfeitures and penalties .
Expenditures, other than principal and interest on long-term debt and
employee compensated absences (vacation and sick leave) , are recorded '
when the liability is incurred. Proprietary fund types are accounted
for on the accrual basis:
c. Investments: '
Investments are stated at. cost, which was less than market value at June
30, 1986 (See Note 3) . If market value declines below cost , a loss is
recorded unless such declines are considered temporary.
d. Property and Equipment: '
Acquisitions of property and equipment are recorded as expenditures in
governmental fund types at the .time of purchase . These assets are
capitalized at cost in the General Fixed Assets Account Group. '
Expenditures for infrastructure (roads, curbs, sidewalks, sewers , etc . )
normally are not capitalized as such assets are immovable and generally '
of value only to the City . No depreciation is provided for assets
capitalized in the General Fix-ad Assets Account Group.
Set: accountants ' report .
-12-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
' d. 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.
Category Useful Life
' Production, pumping, transmission
and distribution plant 10-50 years
General plant 20-50 years
Transportation equipment 5-30 years
' e. 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, 1986 the
unfunded liability for vacation and sick leave accumulated by the City' s
governmental fund employees totalled $3,277 ,869. 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 rather than currently available expendable resources . In the
proprietary funds, the liability of $103,109 has been recorded.
f. Budgetary Accounting:
' The City Council annually adopts a budget by June 30 of the prior fiscal
year. The budgeted expenditures become the appropriations to the
various departments. This "appropriated budget" (as defined by NCGA
' Interpretation Number 10) covers substantially all City expenditures
with the exception of capital improvement projects carried forward from
prior years, which expenditures constitute a legally-authorized "non-
appropriated" budget. The. City Council may revise the budget at any
time. The City Administrator may transfer funds from one object purpose
to another within the same department without increasing the budget of
any one department . Any changes to the total budget of any department
Or fund must be approved by the City Council . Expenditures may not
exceed appropriations - at th.t departmental level . All unused
appropriations lapse at year-end.
tSee accountants' report.
' -13-
Y ,CIT . OF HUNTINGTON BEACH
NOTES' TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986 '
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: '
f. Budgetary Accounting (Continued) :
Budgets for governmental fund-types are adopted on a basis substantially '
consistent with generally accepted accounting principles. There are no
significant non-budgeted expenditures. Revenues for the Special Revenue
funds are budgeted by entitlements and grants ; expenditures and '
transfers are budgeted based upon available financial resources.
Budgetary data is presented for the General , Special Revenue and Debt
Service funds. Budgetary information is not presented for the Capital '
Projects funds since these funds are budgeted on a long-term project by
project basis.
The City utilizes an encumbrance system as a management control 1
technique to assist in controlling expenditures. Encumbrances represent
amounts committed for goads or services on purchase orders which are '
unperformed. At year-end, all outstanding encumbrances are reported as
reservations of fund balance in governmental fund types . These
outstanding encumbrances are then re-appropriated into the new fiscal
year. '
The budgetary information shown for revenues and expenditures represent
the original adopted budget adjusted .for any changes made by the City ,
Council or City Administrator.
g. Property Tax Revenues: ,
Property tax in California is levied in accordance with Article 13A of
the State Constitution at one percent of county-wide assessed
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
period or will be collected within 60 days thereafter.
The property tax calendar is as follows: ,
Lien Date: March 1
Levy Date:. July 1 '
Due Date: First Installment - November 10
Second Installment . - February 10
Delinquent Date: First Installment - December 11
Second Installment - April 11 '
See accountants' report.
•-14-
CITY OF HUNTINGTON-BEACH
' NOTES TO FINANCIAL STATEMENTS
(Continued)
' June 30, 1986
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
g. Property Tax Revenue (Continued) :
' Taxes are collected by Orange County, and are remitted to the City
periodically. (Dates and percentages may vary slightly from. year to
-year. )
' 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
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
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.
h. 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 cast of construction in the Emerald Cove
Housing Fund (an Enterprise Fund).
' i. Total Columns on Combined Financial Statements:
The combined financial statements include 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.
' See accountants ' report.
' -15-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986 '
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
j. Measurement Focus: '
All governmental funds are accounted for on a spending or "financial t
flow" measurement focus.. This means that generally only current assets
and current liabilities are included on their balance sheets, with the
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.
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.
k. Inventories. are accounted for on the purchase (expenditure) method , '
whereby expenditures for inventory are written off as incurred .
Inventories of materials and supplies aggregate $146 ,073 at June 30 ,
1986. '
2. DESCRIPTION OF THE REPORTING ENTITY:
This report incorporates NCGA Statement 3 which outlines criteria for '
deti:rmining whether an entity' s financial information should be included in
or excluded from the City's .report . The following separate legal entities
have been included with the City of Huntington Beach in the report based on ,
the statements guidelines:
Huntington Beach Public Facilities Corporation - This entity was formed in '
1970 to issue bonds to construct the civic center and library complexes .
The general fund annually transfers amounts to cover the debt service on the
corporation' s bonds . The corporation' s original governing body was
appointed by the City Council. '
Parking Authority of the City of Huntington Beach (Parking Authority) - This
entity was formed in 1967 to issue bonds to construct off-street parking '
facilities . The general fund annually transfers amounts to cover the
Parking Authority' s debt service requirements . The Parking Authority ' s
governing body is the City Council .
See accountants' report.
-16-
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
' June 30, 1986
2. DESCRIPTION OF THE REPORTING ENTITY (CONTINUED) :
Redevelopment Agency of the City of Huntington Beach (Redevelopment Agency)-
This entity was formed in 1967 to facilitate the rennovation of older areas
' in the City. The -City Council services as the governing body of the
Redevelopment Agency. Also, the City makes loans to the Redevelopment
Agency.
' There are many other governmental agencies, including the County of Orange,
the Huntington Beach and Ocean View Unified School Districts which provide
services within the City. These entities have independently elected
governing boards and are not a component of the City of Huntington Beach and
their financial information is not included in this report.
3. CASH AND INVESTMENTS:
Cash and investments .are .reported in the accompanying combined balance sheet
' as follows:
Cash. and investments $ 37,842,745
Cash with fiscal agent 15,642,425
' $ 53,485,170
' Cash held by fiscal agent is restricted and is not under the control of the
City Treasurer, and is not available for investment by the City.
The following disclosures are made in accordance with Statement No. 3 of the
Governmental Accounting Standards Board (GASB 3) :
' Authorized Investments
The City of Huntington Beach operates its pooled idle cash investments under
the Prudent Man Rule (California Civil' Code sections 2261 et seq. ) This
' affords the City a broad spectrum of investment_ opportunities as long as the
investment is deemed prudent. and is allowable under current legislation of
the State of California (Government Code Section 53600 et seq.)
Under provisions of the City' s Investment Policy and in accordance with
Section 53601 of the California Government Code, the City may invest in the
following types of instruments:
' a. Bankers acceptance.
b. Negotiable cerfificates of deposit.
c. Commercial paper.
d. Bonds issued by .the City.
e. Obligation of the United States Treasury.
See accountants' report.
' -17-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986 '
3. CASH AND INVESTMENTS (CONTINUED) :
f. Federal Agency Obligations': - '
Federal Intermediate Credit Bank Debentures (FICB's) '
Federal Land Bank- Bonds (FLB's)
Federal Home Loan Bank Notes and Bonds (FHLB's)
Federal National Mortgage Association (FNMA's)
Small Business Administration (SBA' s) '
Governmental National Mortgage Association (GNMA's)
Tennessee Valley Authority"Notes (TVA' s)
Student Loan Association Notes (Sallie MAE's)
g. Obligations of the State of California or of any local agency within the
State' of California: '
The Local Agency Investment Fund (LAIF) is a special fund of the
California State Treasury through which local governments may pool '
investments. Each agency may invest up to $5 ,000,000 in this fund.
Investments in LAIF are highly liquid, as deposits can be converted to
cash within 24. hours without loss of interest. Investments with LAIF
are secured by the full faith and credit of the State of California.
1 .
h. Repurchase Agreements:
Throughout the year ended June 30 , 1986 , the City utilized overnight '
repurchase agreements for temporary investments of City funds. Such
repurchase agreements were used on an average of twenty to twenty-two
times per month, and generally did not exceed 10% of the City ' s '
investment portfolio.
i. Reverse - Repurchase Agreements: ,
Although the City' s Investment Policy does not preclude the use of
Reverse - Repurchase Agreements, the City had no such investments at any '
time during the fiscal year.
Collateral For Deposits
Under provisions of the California Government Code, California banks and '
savings and loan associations are required to secure a City' s deposits by
pledging government securities with a value equal to 110% of a City ' s ,
deposits. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150%
of a City's total deposits.
See accountants' report. ,
-18-
' t
' CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
3. CASH AND INVESTMENTS (CONTINUED) :
1 Collateral for Deposits (Continued):
' The collateral for certificates of deposit is generally held in safekeeping
by the Federal Home Loan Bank in- San Francisco as the third-party trustee.
The securities are physically held in an undivided pool for all California
public agency depositors. The State Public Administrative Office for public
' agencies and the Federal Home Loan Bank maintain detailed records of the
security pool which are coordinated and updated weekly.
' The City Treasurer, at his discretion, may waive the collateral requirement
for deposits which are fully insured up to $100,000 by the FDIC or FSLIC.
It is the City's policy to waive the collateral requirement in order to
' receive a higher interest yield"on its investments.
Safekeeping Arrangements for Investments
' Under Sections 53651 to 53653 of the California Government Code, as amended,
the collateral underlying a City's investments must be "delivered" to the
City. If U.S. Treasury Bills are used as the underlying collateral ,
' delivery may be made .by book entry only. For all other collateral, the
security must be physically delivered either to the City .or to a third-party
custodial agent.
' Under California Senate Bill No. 2115, passed by the California Legislature
in 1986, when a bank is used as a third-party custodial agent, the bank is
permitted to maintain the underlying securities in either its "Trust
Department," or a separate "Safekeeping Department."
The City's deposits and investments are maintained with various financial
' institutions and are stated at cost.
As .defined in GASB 3 , the City' a investments are categorized in the
following manner:
' Category 1: includes investments that are insured or registered in the
City's name, or where the securities are held by the City' s
agent in the City's name.
Category .2: includes uninsured and unregistered investments, where the
' securities are .held by the broker ' s or dealer ' s trust
department or agent, in the City's name.
Category 3: includes uninsured and unregistered investments, where the
' securities are held by the broker or dealer, or by its trust
department or agent, but not in the City's name.
' See accountants' report.
-19-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986
3. CASH AND INVESTMENTS (CONTINUED) :
Safekeeping Arrangements for Investments (Continued) : '
Category Total Market
1 2 3 Cost Value '
Repurchase agreement $ 100,000 $2,620,000 $ - $ 22720,000 $ 2,720,000
Federal Home Loan
Bank 2,979.,063 - - 2,979,063 2,968,000 '
Small Business
Administration 589,113 - - 589,113 6271930
Subtotal $3,668,176 $2,620,000 $ - 6,288,176 6,315.,930 '
Deposits which are 100% insured or collateralized:
Demand Accounts (785,431) (785,431) ,
Certificates of deposits 28,540,000 28,540,000
Investment Local Agency
Investment Fund 3,800,000 3,800,000 ,
Total Deposits and
Investments $37,842,745 $37,870,499 '
Allocation of Interest Income Among Funds
The City pools all non-restricted cash for investment purposes. Interest '
income is allocated monthly to .the various funds based on the month-end cash
balances. Interest income from restricted cash is allocated directly to '
the fund earning the income.
4. DEFERRED COMPENSATION:
Full-time City employees have the option of deferring a portion of their '
earnings. The deferred amounts are primarily invested in savings accounts
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, 1986 was $7,253,342, which represents the market value of the
investments. I
Since the City has a fidiciary responsibility to handle the plan, assets of
the plan are included in an agency fund in the City's financial statements :
Under provisions of Internal Revenue Code Section 457 , the assets of the
plan remain the property of the City until paid or made available to the
participants. '
See accountants' report. '
-20- ,
' CITY OF -HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
' June 30, 1986
5. 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;536
Interest on amount due on sale of Huntington Breakers
site accruing at 10% per annum 134,232
' Development fees plus interest accruing at 10% per annum 335,210
Interest on other loans and advances accruing at 10%
per annum 423560
' Total General Fund 1,298:538
Special 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 935,016
' Development fees 247,664
Total. Park Acquisition and Development Fund 3,932,680
Sewer Fund:
' Development fees 47,804
Planned .Local Drainage Fund:
Development fees 79,638
Total Special Revenue Funds 4,060,122
' Total Deferred Revenue $ 5,358,660
' 6. 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 monthly contributions to
PERS. The total pension expense for the year ended June 30, 1986 was
$6,911,265, of which approximately $1,620,700 was for prior service costs .
' Actuarial information related to the plan was not available from PERS fo=
June 30, 1986. However, at June 30, 1985, the plan net assets available for
benefits totaled $.77,630,400, and the present value of the City' s unfunded
obligation for prior service costs totaled $17,414,500, which amount will be
funded through the year 2000 from established contribution rates .. The
actuarial. present value- of -vested and non-vested accumulated plan benefits
is not determined under the PERS system of accounting.
See accountants' report
' -21-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986 ,
7. SELF INSURANCE PLANS:
The City self-insures for health, workers ' compensation and general '
liability claims.
The City is self-insured for the first $75 ,000 of each health claim and
$150,000 of each workers' compensation claim. ' Claims in excess of self-
insurance limits are covered by. insurance up to $1,000 ,000 for health and
the statutory limit for workers ' compensation. The City maintains no '
general liability insurance policy. It is the City' s policy to charge to
expense amounts of claims which are reasonably determinable and where the
existence of the City' s liability is probable in accordance with NCGA ,
Statement 4.
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. The liability for self-insurance claims includes an amount for
liabilities incurred but not reported at June 30, 1986. Transfers from the
General Fund are periodically made to cover deficits caused from inadequate ,
charges to the other funds.
8. INTERFUND TRANSACTIONS: '
Individual interfund receivables and payables were as follows at June 30 ,
1986:
Due From Due to-
Other Funds Other Funds
General Fund $ 6,788,235 $
Special Revenue Funds:
Sewer 47,804 -
Planned Local Drainage 79,638
Federal Revenue Sharing - -
Other Grants 1,064,483
Park Acquisition and Development 3,932,680 -
Enterprise Funds: '
Water Utility 24,428 -
Emerald Cove Housing - 111,411
Long-term Debt Account Group (See Note 10) - 11,825,857 ,
$ 11,937,268 $ 11,937,268
9.. SEGMENT INFORMATION FOR ENTERPRISE FUNDS: '
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, 1986
for those funds was as follows: --
See accountants' report.
-22- ,
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
9. SEGMENT INFORMATION FOR ENTERPRISE FUNDS:
Emerald
Water Meadowlark Cove
Utility Golf Course Housing Total
1 Operating revenues $ 8,172,637 $ 2181437 $ 575,826 $ 8.966,900
Depreciation expense $ 1,173,616 $ 32,587 $ 79,375 $ 1,285,578
' Operating income (loss) $ (1,761,013)$ 185.850 $ 265,509 $ (1,309,654)
Net income (loss) $ (11336,343)$ 105,123 $ (26,484)$ (1,257,704)
' Capital contributions
received $ 1,294,978 $ - $ - $ 1,294,978
' Acquisitions
(dispositions) of
fixed assets, net $ 150,361 $ (2,770)$ 191,417 $ 339,008
' Net working capital $ 3,657,809 $ 388,123 $ 795,396 $ 4,841,328
Total assets $ 33,942,160 $ 3,690,719 $ 6,911,074 $ 44,543,953
' Long-term obligations,
net of current
portion $ 1,2611657 $ 1,755,949 $ 4,497,633 $ 7,515,239
Total equity $ 30,746,508 $ 1,867,896 $ 2,215,231 $ 34,829,635
' 10. GENERAL TANG-TERM DEBT:
The following is a summary of 'changes in general long-term debt .for the year
' ended June 30, 1986:
Balance Balance
Outstanding Outstanding
' June 30, June 30,
1985 Additions Retirements 1986
1970 Park Bonds $ .- 3,425,000 $ - $ 260,000 $ 3,165,000
Public Facilities
Corporation Leasehold
Mortgage Bonds 11,440,000 - 590,000 10,850,000
Parking Authority Revenue
Bonds 1,170,000 - 110,000 l,060j000
California Coastal
Conservancy Note Payable 208,900 216,100 - 425,000
' Compensated absences 2,958,925 318,944 - 3,277,869
Equipment leases 212 ,331 212,331
Due. to Other Funds 5,994,195 5,831,662 - 11,825,857
' Totals $ 25,409,351 $ 6,366,706 $ 1,172,331 $ 30,603,726
' See accountants' report.
-23-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986
10. GENERAL LONG-TERM DEBT (CONTINUED) :
a. 1970 Park Bonds: '
On March 1, 1970 $6 ,00 ,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, 1986 was as follows:
Year
Ending
June 30, Principal Interest Total
1987 $ 280,000 $ 189,900 $ 469,900 '
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
$ 3,165,000 $ 1,024,800 $ 4,189,800 '
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 ,
transfers $854,900 to the Corporation. Principal matures annually on
January 15 and bears interest ranging from 5% to 5.5% per annum, payable
semi-annually. The principal balance outstanding at June 30, 1986 is
$79400,000. '
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 transfers $399 ,600 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, 1986 is $3,410,000.
The annual debt service requirements to amortize the bonds outstanding '
at June 30, 1986 was as follows:
See accountants' report. '
-24-
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
16. GENERAL LONG-TERM DEBT (CONTINUED) :
' Year
Ending Civic Center Bonds, Library Bonds
June 30., Principal Interest Principal Interest _ Total
1987 $ 430.,000 $ 4019-225 $ 200,000 $ 182,087 $' 1,213,312
1988 450,000 371,575 210,000 170,812 1,208,387
' 1989 465,000 352,825 230,000 158,712 1,206,537
1990 530,000 327,250 240,000 145,661 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 1,284,400
1997 830,000 79,750 360,000 28,250 1,298,000
1998 765,000 38,250 385,000 9,625 1,197,875
$ 7,440,000 $ 2,861,125 $ 3,410.200 $ 1,241,642 $ 14,952,767
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, 1986 was as follows:
' Year
Ending
June 30, Principal Interest Total
' 1987 $ 115,000 $ 52,631 $ 167,631
1988 1205000 46;463 166,643
1989 125,000 40,031 165,031
1990 135,000 33,206 168,026
' 1991 140,b00 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
$ 1,060;000 $ 229,425 $ 1,289,425
See accountant's report.
' -25-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986 '
10. GENERAL LONG-TERM DEBT (CONTINUED) :
d. California Coastal Conservancy Note Payable: ,
In March, 1983, a storm damaged the municipal pier. The California ,
Coastal Conservancy agreed to lend the City $425,000 to cover a portion
of the repair costs. Through July 1, 1985 $208,900 had been advanced to
the City and during the year, the additional $216,100 was advanced. The
first $150 ,000 of the note bears interest at 8 .00% per . annum. The '
remaining $275,000 bears interest at 8.86% per annum. Payments commence
July 1, 1487 and. are due annually thereafter until the July 1, 1997 .
The future required payments on the note are as follows:
. Fiscal Year Ending
June 30, Amount ,
1988 $ 22,355
1989 65,025
. 1990 65,025
1991 65,025 '
1992 65,025
1993 and after 366,531
648,986 '
Less amount representing
interest (223,986)
Principal outstanding
June 30, 1986 $ 425,000
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, 1986 ,
of $3,277,869.
f. Due to Other Funds: ,
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. '
See accountants' report. '
-26-
' CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
10. GENERAL LONG-TERM DEBT (CONTINUED) :
f. Due to Other Funds:
' The various transactions are described below:
Sale of land by the Park Acquisition and
Development Fund for $2,750,000 plus
interest at 10% per annum $ 3,685,016
Sale of land by the General Fund for $405,536
plus interest at 10% per annum 539,768
Cash advances from the General Fund plus
accrued interest at 10% per annum 5,801,846
Cash advances from the Grants Fund 1,064,483
Developers fees payable to various funds
to be subsidized by the Agency 734,744
Total Amount Due to Other Funds $ 11,825,857
' Below is a reconciliation of the change in amounts due to other funds by the
Redevelopment Agency recorded as general long-term debt for the year ended
' June 30, 1986:
Amount due to other funds July 1, 1985 $ 5,994,195
' Advances received 4,913,841
Transactions recorded in other funds as
deferred revenue 917,821
Amount due to other funds July 1, 1986 $ 11,825,857
11. ENTERPRISE LONG-TERM DEBT:
' The following is a summary of changes in Enterprise Fund long-term debt for
the year ended June 30, 1986:
' Balance Balance
Outstanding Outstanding
June 30, June 30,
1985 Retirements 1986
1963 Water Revenue Bonds $ 1,111,000 $ 58,000 $ 1,053,000
San Joaquin Reservoir Note Payable 366,312 44,957 321,355
Meadowlark Golf Course Note
' Payable 1,804,917 23,656 1,781,261
Emerald Cove Housing Certificates
of Participation (net of discount
' of $102,367) 4,497,633 4,497,633
Compensated absences 129,705 26,596 103,109
$ 7,909,567 f 153,209 $ 7,756,358
See accountants' report.
' -27-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
11. ENTERPRISE LONG-TERM DEBT: '
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 beats
interest at 3.5% per annum, payable semi-annually.
The annual debt service requirements to amortize the bonds outstanding '
at June 30, 1986 was as follows:
Year
Ending
June 30, Principal Interest Total
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 133,000 4,113 137,113
$ 1,053,000 92 503 $ 1,145,503 I
The bond indenture requires that Water Utility revenues equal or exceed_ ,
1.25 times the annual debt .service requirement (principal and interest).
Net revenues are defined as gross revenues 1es�g_ma a-Ge.aa ce and
operation revenues, excluding depreciation. The Cift,, has not comp d
with this requirement for the year ended June 30, 1986, as—shown—below: ,
Gross revenues $ 8,650,971 ,
Operating expenses, excluding '
interest and depreciation 8,760,034
Net revenues (deficit) $ (109,063)
Debt service requirement $ 97,631
See accountants' report. 1
28 '
CITY .OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
11. ENTERPRISE LONG-TERM DEBT
b. San Joaquin Reservoir Note Payable:
In 1979 the City and several other local cities and water districts
purchased the San Joaquin Reservoir. The City is paying a portion
(13.56%) of the debt service for the 1961 construction of the reservoir
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
recorded its portion of the reservoir as a fixed asset in the Water
Utility Fund.
The future required payments on the note are as follows:
Year
Ending
June 30,
1987 $ 58,018
' 1988 60,228
1989 60,284.
1990 60,464
1991 61,028
' 1.992 54,984
355,006
Less amount representing
interest (33,651)
Principal outstanding at
June 30, 1986 $ 321,355
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.
See accountants' report.
-29-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS
(Continued) .
June 30, 1986
11. ENTERPRISE LONG-TERM DEBT:
c. Meadowlark Golf Course Note Payable (Continued): '
The future required payments on the note are as follows:
Year '
Ending
June 30, '
1987 $ 150,000
1988 150,000 ,
1989 150,000
1990 150,000
1991 and after 3,165,703
3,765,703
Less amount representing
interest (1,984,442)
Principal outstanding at '
June 30, 1986 $ 1,781,261
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 . The -entire principal of
$4,600,000 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 . 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. The unamortized '
discount. at .June 30, 1986 is $102,367.
See accountants' report. '
-30-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
' June 30, 1986
11 , CHANGES IN GENERAL FIXED ASSETS,
GENERAL FIXED ASSETS:
' Balance Balance
June 30, 1985 Additions Dispositions June 30, 1986
Land $ 25,871,290 $ 4,992,723 $ - $ 30,864,013
Buildings 23,450,615 1,720,558 12,712 25,158,461
Machinery and
equipment 9,329,761 349,351 345,784 9,333,328
Improvements other
' than buildings 6,846,597 774,862 39,292 7,582,167
Construction in
progress 1,119,580 - 1,119,580 -
' $ 66,617,843 $ 7,837.494 $ 1,517,368 $ 72,937,969
' PROPRIETARY FUNDS:
Enterprise Funds:
Land $ 4,751,395 $ - $ - $ 4,751,395
' Buildings 1,232,039 3,968,756 - 5,200,795
Machinery and
equipment 43,498,545 1,568,059 50,586 45,016,018
Construction in progress 3,879,880 - 3,879,880 -
53,361,859 $ 5,536,815 $ 3,930,466 54,968,208
Less: accumulated)
depreciation (17,699,091) (18,957,032)
' $ 35,662,768 $ 36,011,176
INTERNAL SERVICE FUNDS:
Machinery and -
equipment $ 245,339 $ 1,698,696 $ $ 1,944,035
Less: accumulated
depreciation (24,012) (132,023)
$ 221,327 $ 1,812,012
See accountants' report.
-31-
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
(Continued)
13. RESERVES AND DESIGNATIONS OF FUND EQUITY: '
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
Reserves:
Encumbrances $1,237,826 $ 969,899 $ - $ - $. -
Long-term '
receivables 5,489,697 1,202,032 - - -
Reimbursement
agreements 756,762 - - '
Continuing
projects - - - 2,662,043 -
Debt service - - 6,864,970 - 94,231
City council '
projects 25,000 - - - -
Other fund
deficits 2,080,140 -
Designations:
Subsequent year's
expenditures - 228775449
Totals $8,832,663 $5,806,142 $6,864,970 $2,622,043 $ 94,231
a. Reserves for encumbrances are the amounts committed for materials and
services on purchase orders and contracts which are unperformed. '
b. Reserves for long-term receivables represent amounts which may not be ,
repaid _until future years.
c. Reserves for reimbursement agreements represent expected future '
reimbursements to developers for sewer and drainage construction.
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.
See accountants' report.
-32-
t
' CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
13, RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED) :
' g. A reserve has been established in the general fund to cover deficit fund
equity in the Self Insurance Fund (an Internal Service Fund) of
$2,080,140.
h. The designations for subsequent years-' expenditures are made to provide
for deficits budgeted for the subsequent year.
' 14. COMMITMENTS AND CONTINGENCIES:
' 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 actions is not
' expected to have a significant impact ,. if any, on the financial
statements or operations of the City.
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 ADJUSTMENT:
' Through June 30, 1985, the City did not record unbilled receivables in the
Water Utility Fund. The amount that should have been recorded was $791,237 .
' The Water Utility retained earnings as of June 30, 1985 has been adjusted to
reflect this change.
' Retained earnings as originally reported
at June 30, 1985 $ 449,734
Adjustment 791,237
Retained earnings restated at
June 30, 1985 $ 1,240,971
' See accountants' report.
-33-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
(Continued)
June 30, 1986 '
16. SUBSEQUENT EVENTS:
a. Tax and Revenue Anticipation Notes: '
On July 1 , 1986 the City issued $12 ,200 ,000 of Tax and Revenue
Anticipation Notes bearing interest at 4.75%. These notes mature on
June 30, 1987 .
b. Defeasance of Public Facilities Corporation Leasehold Mortgage Bonds
First Issue:
In July 1986, the City of Huntington Beach Civic Improvement Corporation
was formed to provide for the acquisition of the Civic Center from the
Public Facilities Corporation. In order to provide for the defeasance
of the Public Facilities Corporation Leasehold Mortgage Bonds First ,
Issue, the Civic Improvement Corporation issued $20 ,000 ,000 of
certificates of participation. The governing board of the Civic
Improvement Corporation is the City Council and the Corporation will be
included under the City's reporting entity. '
The City and the Public Facilities Corporation discharged their lease
and sublease dated September 15, 1972 and all land and improvements at ,
the Civic Center site reverted to the City. The City then transferred
all interest in the land and improvements to the Civic Improvement
Corporation. The Civic Improvement Corporation placed $6,940,860 from '
proceeds of the certificates into an escrow account which will fund the
debt service requirements on the defeased Public Facilities Corporation
bonds. The City then entered into a thirty year lease agreement with
the Civic Improvement Corporation for the Civic Center. For financial '
statement purposes, the certificates will be shown in the general long-
term debt account group. The monies transferred from the general fund
for the lease payment will be shown as a debt service fund since this
will be used to meet the debt service requirements of the certificates.
The City agreed to budget the lease payment in its general fund where it '
will be recorded as operating transfers from the general fund to the
Civic Improvement Corporation Debt Service Fund. The lease payments are
equal to the debt service requirements on the certificates . The '
interest rates on the certificates vary from 4.75% to 7.9%. Interest is
payable semi-annually on February 1 and August 1 with principal maturing
annually on August 1 beginning 1987. Debt service requirements are as
follows:
See accountants report. t
-34-
1
' CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
(Continued)
June 30, 1986
16. SUBSEQUENT EVENTS (CONTINUED):
Fiscal
' Year
Ending
June 30 Principal Interest Total
' 1987 $ 170,000 $ 1,602,661 $ 1,772,661
1988 220,000 1,526,388 1,746,388
1989 230,000 1,514,838 1,744,838
' 1990 245,000 1,501,612 1,746,613
1991 260,000 1,486,913 1,746,913
1992 275,000 1,470,663 1,745,663
' 1993 295,000 1,452,788 1,747,788
1994 315,000 1,432,875 1,747,875
1995 335,000 1,410,825 1,745,825
' 1996 360,000 1,386,705 1,746,705
1997 385,000 1,360,425 1,745,425
1998 415,000 1,331,935 1,746,935
1999 445,000 1,300,810 1,745,810
' 2000 480,000 1,266,990 1,746,990
2001-2007 4,605,000 7,627,055 12,232,055
2008-2016 10,965,000 4,768,440 15,733,440
$ 20,000,000 $ 32,441,923 $ 52,441,924
The net proceeds of the certificates of participation of $11 ,691 ,517
' will be used for the construction of a parking structure in the
Main/Pier Redevelopment Project Area, although there is no legal
restriction requiring the City to use the net proceeds on these
projects.
Below is shown the difference between the aggregate debt service
requirements of the old issue and the debt service requirements of the
new issue both discounted at the true interest rate adjusted for the
additional cash received by the new issue.
Net Present Value of Public Facilities
Leasehold Mortgage Bonds, First Issue $ 6,846,129
Net Present Value of Civic Improvement
Corporation Certificates of Participation
Adjusted for Net Proceeds Received (8,171,782)
Loss on Refunding of Debt - Difference in
Net Present Value of Debt Service
Requirements $(1,325,653)"
' See accountants' report.
' -35-
CITY OF HUNTINGTON BEACH '
NOTES TO FINANCIAL STATEMENTS '
. (Continued)
June 30, 1986
16. SUBSEQUENT EVENTS (CONTINUED): '
c. Allocation of Property Tax Revenues:
On August 18, 1986, the City and the Redevelopment Agency entered into '
an agreement with the Orange County Superintendent of Schools regarding
the Huntington Beach Center Redevelopment Project Area property tax
revenues. Commencing with fiscal year 1990-91 , and each year
thereafter, the Redevelopment Agency will pay the Orange County
Superintendent of Schools one-fourth of the tax increment revenues
received by the Huntington Center Redevelopment Project Area. '
17. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES:
a. Expenditures in the Public Communications Special Revenue Fund exceed
appropriations by $2,299.
b. The Self-Insurance Fund (on Internal Service Fund) has a deficit fund '
balance of $2,080,140 at June 30, 1986. This deficit will be funded in
future years through increased charges to other funds and/or
contributions from the General Fund.
c. The Water Uutility Fund has a deficit retained earnings balance of
$95,372 at June 30, 1986. A rate increase was enacted in April, 1986.
It is expected that this increase will enable the deficit to be ,
eliminated in future years.
1
See accountants ' report.
-36- ,
i
FINANCIAL ST&TB�I?8
i OF
' IWIVIDDAL FUNQ8
AND
tACCOUNT GROUPS
1
1
1
1
1
GMM AL 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.
1
1
1
1
1
•CITY OF HUNTINGTON BEACH SCHEDULE B-1
GENERAL FUND
COMPARATIVE BALANCE SHEET
June 30, 1986 and 1985
1 +
ASSETS
1986 1985
Cash and investments $ 9,401,307 $ 11,667,648
Taxes receivable 486,185 473,441
Accrued interest receivable 51,763 73,280
' Accounts receivable 344,429 460,426
Due from other agencies 150,218 855,915
Due from other funds 6,788,235 1,926,495
Deposits and other assets 179,200 358,842
TOTAL ASSETS $ 17,401,337 $ 15,816,047
' LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts payable $ 1,180,524 $ 1,169,666
Accrued payroll 1,933,167 1,600,646
Deposits 558,628 689,785
.Deferred revenue 1,298,538 709,873
' TOTAL LIABILITIES 4,970,857 4,169,970
FUND BALANCE:
Reserved for encumbrances 1,237,826 2,275,715
Reserved for long-term receivables 5,489,697 1,372,206
Reserved for other fund deficits 2,080,140 2,248,962
Reserved for City Council projects 25,000 25,000
Unreserved/undesignated 3,597,817 5,724,194
' TOTAL FUND BALANCE 12,430,480. 11,646,077
TOTAL LIABILITIES AND FUND BALANCE $ 17,401,337 $ 15,816,047
1
1
-37-
'CITY OF HUNTINGTON BEACH SCHEDULE B-2
GENERAL FUND '
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL ,
For the year ended June 30, 1986
With comparative totals for the year ended June 30, 1985
1986
Variance
Favorable 1985
Budget Actual (Unfavorable) Actual
REVENUES:
Property taxes $ 20,003,000 $ 18,456,192 $(1,546,808)$ 17,073:983 ,
Other taxes 26,490,000 27 ,622,057 1,132,057 25,923113
Licenses and permits 3,182,500 3,042,450 (140,050) 3,591,493
Fines, forfeitures, and
penalties 2,131,000 1,973,670 (157,330) 2,093,975
From use of money and property 4,213,200 3,782,431 (430,769) 3,899,972
From other agencies 6,107,900 7 ,125,470 .1,017,570 5,953,540
Charges for current services 2,509,400 2,525,401 16,001 2,202,185 '
Other 876,500 735,484 (141,016) 364,156
TOTAL REVENUES 65,513,500 65,263,155 (250,345) 61,102 ,417 ,
EXPENDITURES:
Current:
City Council 88,708 90,029 (1,321) 128,635
City Administrator 534,314 488,064 46,250 633:514 '
City Treasurer 298,037 286,648 11,389 267882
City Attorney 645,475 644,685 790 806,146
City Clerk 143,625 163,608 (19,983) 194834
Administrative Services 2,718,975 2,600,737 118,238 2,558:796 ,
Development Services 1,869,686 1,773,596 96,090 1,759,542
Fire 10,102,772 10,236,204 (133,432) 9,469458
Police 19,241,487 18,729,315 512,172 17,114:924 '
Community Services 5 ,917,207 5,585,738 331,469 5 ,169,351
Public works 15,766,862 14,911,530 855,332 13,625,016
Non-departmental 8,091,928 6,795,596 1,296,332 4,867 ,215
Capital outlay 2,295,469 21186,520 108,949 3,098,315 '
TOTAL EXPENDITURES 67,714,545 64,492,270 3,222,275 59,693,628
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,201 ,045) 770,885 2,971,930 1,408,789 ,
OTHER FINANCING SOURCES (USES) :
Operating transfers in 1 ,200,000 1,221,368 21,368 2,795 ,907
Operating transfers out (1,423,950) (1,423,950) - (1,423,950
Proceeds of long-term debt 216,100 2165100 - -
TOTAL OTHER FINANCING
SOURCES (USES) (7,850) 13,518 21,368 1,371,957 '
EXCESS OF REVENUES AND
OTHER SOURCES OVER
(UNDER) EXPENDITURES (2,208,895) 784,403 2,993,298 2,780,746
FUND BALANCE - BEGINNING OF YEAR 11,646,077 11,646,077 - 10,382,894 '
Residual equity transfers in - - 682,437
Residual equity transfers out - - - (2,200,000)
FUND BALANCE - END OF YEAR $ 9,437,182 $ 12,430,480 $ 2,993,298 $ 11,646,077
-38- '
' SPECIAL REVS M FUNDS
' Gas Tax This fund accounts for revenues and expenditures apportioned under the
Street- and Highways Code of the State of California. Expenditures may be made for any
street-related purpose allowable under the Code. I
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 Citys 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-orient public television.
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.
1
1
1 -
CITY OF HUNTINGTON BEACH '
SPECIAL REVENUE FUNDS ,
COMBINING BALANCE SHEET
June 30, 1986
With comparative totals for June 30, 1985
Planned Federal ,
Local Revenue
ASSETS Gas Tax Sewer Drainage Sharing
Cash and investments $ 4,576,131 $ 4,073,869 $ 3,160,704 $ 287,258
Accrued interest receivable 22,080 19,657 15,250 -
Accounts receivable - - - - '
Due from other agencies 2,559 121 ,952 - 304,217
Due from other funds - 4-71804 79,638
TOTAL ASSETS $ 4,600,770 $ 4,263,282 $ 3,255,592 $ 591,475
LIABILITIES AND FUND BALANCES ,
LIABILITIES:
Accounts payable $ 99,306 $ 788 $ 154,952 $
Accrued payroll - - - -
Deposits - 64,408 -
Deferred revenue - 47,804 79,638 -
Due to other funds - - -
TOTAL LIABILITIES 99,306 1131000 234,590 -
FUND BALANCES: ,
Reserved for encumbrances 220,554 40,826 214,217 -
Reserved for long-term receivables - - - = ,
Reserved for reimbursement
agreements 45,419 711,343
Unreserved:
Designated for subsequent ,
years expenditures 1 ,954,650 283,200 - -
Undesignated 2,326,260 3,780,837 2,095,442 591,475
TOTAL FUND BALANCES 4 ,501,464 4,1501282 31021,002 591,475 '
TOTAL LIABILITIES AND ,
FUND BALANCES $ 4,600,770 $ 4,263,282 $ 3,255,592 $ 591,475
-39-
SCHEDULE C-1
Park
Acquisition
Public and Totals
Communications Grants Development 1986 1985
$ 54,303 $ 350,542 $ 1,015,518 $ 13,518,325 $ 13,250,052
283 856 4,912 63,038 79,738
873,622
60,684 137,549 626,961 479,641
- 1,064,483 3,932,680 5,124,605 4,735,628
$ 54,586 $ 1,476,565 $ 5,090,659 $ 19,332,929 $ 19,418,781
$ 2,307 $ 135,411 $ 54,496 $ 447 ,.260 $ 390,884
5,430 10,617 1,616 17,663 15,260
- 1,000 1,000 66,408 65,408
3,932,680 4,060,122 3,671,145
369,136
7,737 147 ,028 3,989,792 4,591,453 4,511,833
4,109 355,920 134,273 969,899 1,516,775
1 ,064,483 137 ,549 1,202,032 1 ,064,483
- - 7569762 -
' - 4- 639,599 2,877 ,449 1,150, 31
42,740 (90,866) 109,446 8,935,334 11,175,259
46,849 1 ,329,537 1,100,867 14,741,476 14,906,948
$ 54,586 $ 1 ,476,565 $ 5,090,659 $ 19,332,929 $ 19,418,781
' -40-
CITY OF HUNTINGTON BEACH '
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
For the year ended June 30, 1986
With comparative totals for the year ended June 30, 1985 ,
Planned Federal
Local Revenue
Gas Tax Sewer Drainage Sharing
REVENUES: '
Licenses and permits $ - $ 365,207 $ 143,686 $
From use of money and property 341,392 244,695 275,083 -
From other agencies 3,978,050 - 192,900 1,366,475
Charges for current services - - - -
TOTAL REVENUES 4,319,442 609,902 611,669 1,366,475
EXPENDITURES: t
Current:
City Administrator
Community services - - - -
Fire - - - -
Police - -
Public works - 133,989 ^ '
Housing and Community Development - - -
Capital outlay 2,121,048 - 269,081 -
TOTAL EXPENDITURES 2,121,048 1332989 269,081
EXCESS OF REVENUES OVER '
(UNDER) EXPENDITURES 2,198,396 4752913 342,588 1,366.475
OTHER FINANCING SOURCES (USES.):
Operating transfers in - - -
Operating transfers out (1,221,368) - - (775,000)
TOTAL OTHER FINANCING
SOURCES (USES) (1,221,368) - - (775 ,000) '
EXCESS OF REVENUES AND
AND OTHER SOURCES OVER
(UNDER) EXPENDITURES
AND OTHER USES 977,026 475,913 342,588 591,475
FUND BALANCES - BEGINNING OF YEAR 3,524,438 3,674,369 2,678,414 - '
Prior period adjustments - - -
Residual equity transfers in - - - -
FUND BALANCES - END OF YEAR $ 4,501,464 $ 4,150,282 $ 3,021,022 $ 591,475 '
-41- ' .
SCHEDULE C-2
Park
Acquisition
Public and Totals
Communications Grants Development 1986 1985
' $ - $ $ 700,237 $ 1,209,130 $ 2,371,918
7,680 140,490 236,683 1,246,023 1,240,579
- 1 ,480,166 - 7,017,591 6,934,804:
' 175,434 - - 175,434 59,239
183,114 1 ,620,656 936,920 9,648,178 10,606,540
' 141,826 - - 141,826 97,452
10,030 72,731 82,761 117 ,597
15,506 15,506 24,376
15,303 - 15 ,303 7,718
' _ - _ 133,989 26,494
342,545 342,545 661,965
27,093 1 ,350,564 5,317,566 9,085,352 4,718,986
168,919 1,733,948 5,390,297 9,817,282 5,654,588
' 14,195 (113,292) (4,453,377) (169,104) 4,951,952
2,000,000 2,000,000 628,309
- - - (1,996,368) (3,424,216)
t - - 2,000,000 3,632 (2,795,907)
14,195 (113,292) (2,453,377) (165,472) 2,156,045
32,654 1 ,442,829 3,554,244 14,906,948 16,011,365 .
- - - - (3,460,462)
200,000
$ 46,849 $ 1 ,329,537 $ .1,100,867 $ 14,741,476 $ 14,906,948
' -42-
,CITY OF HUNTINGTON BEACH SCHEDULE C-3
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
(Continued)
For the year ended June 30, 1986
1
GAS TAX '
Variance -
Favorable
Budget Actual (Unfavorable) ,
REVENUES:
From use of money and property $ 270,000 $ 341,392 $ 71,392
From other agencies 3,546,000 3,978,050 432,050
TOTAL REVENUES 32816,000 4,319,442 503,442
EXPENDITURES: '
Capital outlay 5,386,467 2,121,048 3,265,419
EXCESS OF REVENUE OVER (UNDER) ,
EXPENDITURES (1,570,467) 2,198,396 3,768,863
OTHER FINANCING USES: ,
Operating transfers out (1,200,000) (1 ,221,368) (21,368)
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES AND OTHER USES (2,770,467) 977,026 3,747,493
FUND BALANCE - BEGINNING OF YEAR 3,524,438 35524,438 -
FUND BALANCE - END OF YEAR $ 753 971 $ 4,501,464 3 747 493 1
SEWER '
REVENUES:
Licenses and permits $ 290,000 $ 365,207 $ 75,207 '
From use of money and property 90,000 244,695 164,695
TOTAL REVENUES 380,000 609,902 239,902
EXPENDITURES:
Public outlay (1,643,427) (133,989) 1 ,509,438 ,
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (1,263,427) 475,913 1,749,340
FUND BALANCE - BEGINNING OF YEAR 3,674,369 3,674,369 -
FUND BALANCE - END OF YEAR $ 2,410,942 $ 4,150,282 $ 1,749,340
(CONTINUED) ,
-43-
' SCHEDULE C-3
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
(Continued)
For the year ended June 30, 1986
PLANNED LOCAL DRAINAGE
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 250,000 $ 143,686 $ (106,314)
From use of money and property 197,000 275,083 78,083
' From other agencies . 200,000 1929900 (7,100)
TOTAL REVENUES 647,000 6112669 (35,331)
EXPENDITURES:
Capital outlay 1,079,528 269,081 810,447
' EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (432,528) 342,588 775,116
FUND BALANCE - BEGINNING OF YEAR 2,678,414 2,678,414 -
FUND BALANCE - -END OF YEAR $ 2,245,886 $ 3,021,002 $ 775,116
FEDERAL REVENUE SHARING
' REVENUES: -
From use of money and property $ 40,000 $ $ (40,000)
From other agencies 1,510,000 1 ,366,475 (143,525)
' TOTAL REVENUES 1,550,000 1 ,366,475 (183,525)
OTHER FINANCING USES:
' Operating transfers out (775,000) (775,000) -
EXCESS OF REVENUE OVER
' OTHER USES 775,000 591,475 (183 ,525)
FUND BALANCE - BEGINNING OF YEAR - - -
' FUND BALANCE - END OF YEAR $ 775,000 $ 591,475 $ (1831525)
' (CONTINUED)
-44-
'CITY OF HUNTINGTON BEACH SCHEDULE C-3
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL '
(Continued)
For the year ended June 30, 1986 ,
PUBLIC COMMUNICATIONS
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Charges for current services $ 193,000 $ 1759434 $ (17 ,566)
Use of money and property 5,000 7,680 2 ,680
TOTAL REVENUES 198,000 1832114 (14,886)
EXPENDITURES:
City Administrator 126,379 141,826 (152447)
Capital outlay 40,241 27,093 13,148
TOTAL EXPENDITURES 166,620 1685919 (2,299)
EXCESS OF REVENUE OVER
EXPENDITURES 31,380 14,195 17,185
FUND BALANCE - BEGINNING OF YEAR 32,654 32,654
FUND BALANCE END OF YEAR $ 64,034 $ 46,849 $ 17,185
OTHER GRANTS ,
REVENUES:
From use of money and property $ 26,000 $ 140,490 $ 114,490 ,
From other agencies 12475,000 1 ,480,166 5 ,166
TOTAL REVENUES 1,501,000 1,620,656 119,656
EXPENDITURES:
Current:
Development Services 15,269 15,506 (237)
Police 10,282 15,303 (5,021) ,
Community services 11,737 102030 1 ,707
Public works 1185 - 185
Housing and Community Development 205,493 342,545 (137 ,052) ,
Capital outlay 4,414.,666 12350,564 3,065,102
TOTAL EXPENDITURES 4,658,632 1,733,948 2,924,684
EXCESS OF REVENUE OVER (UNDER) ,
EXPENDITURES (3,157,632) (113,292) 3,044,340
FUND BALANCE - BEGINNING OF YEAR 1,442,829 1,442,829
FUND BALANCE - END OF YEAR $(12714,803)$ 1,329,537 $ 3,044,340
(CONTINUED)
-45- ,
SCHEDULE C-3
CITY OF HUNTINGTON BEACH
' SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
' CHANGES IN FUND BALANCES -..BUDGET AND ACTUAL
(Continued)
For the year-ended June 30, 1986
PARK AC UISIT10N AND DEVELOPMENT
Variance -
Favorable
Budget Actual (Unfavorable)
' REVENUES:
Licenses and permits $ 2,103,000 $ 700,237 $ 550,237
From use of money and property 150,000 236,683 (1,866,317)
' TOTAL REVENUES 2,253,000 936,920 (1,316,080)
EXPENDITURES:
' Community Services 132,031 72,731 59,300
Capital outlay 6,165,931 5,317,566 848,365
TOTAL EXPENDITURES 6,297,962 5,390,297 907 ,665
tEXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (4,044,962) (4,453,377) (408,415)
' OTHER FINANCING SOURCES:
Operating transfers in 2,025,000 2,000,000 (25 ,000)
' EXCESS OF REVENUE AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES (2,019,962) (2,453,377) (433,415)
FUND BALANCE - BEGINNING OF YEAR 3,554,244 3,554,244
FUND BALANCE - END OF YEAR $ 1,5342282 $ 1,100,867 $ (433,415)
(CONTINUED)
-46-
SCHEDULE C-3 '
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS ,
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ,
(Continued)
For the year ended June 30, 1986 ,
TOTALS ,
Variance
Favorable '
Budget Actual (Unfavorable)
REVENUES:
Licenses and permits $ 2,643,000 $ 1,209,130 $(1,433,870)
From use of money and property 778,000 1 ,246,023 468,023
From other agencies 6,731,000 7 ,017 ,591 286,591
Charges for current services 193,000 175,434 (17,566)
TOTAL REVENUES 10,345,000 9,648,178 (696,822)
EXPENDITURES:
Current:
Administration 126,379 141,826 (15,447)
Community Services 143,768 82,761 61,007 ,
Fire 15,269 15,506 (237)
Police 10,282 15,303 (5,021)
Public works 1,643,612 133,989 1,509,623
Housing and Community Development 205,493 342,545 (137,052) '
Capital outlay 17,087,833 9,085,351 8,002,482
TOTAL EXPENDITURES 19,232,636 9,817,281 9,415,355
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (8,887,636) (169,103) (8,718,533) '
OTHER FINANCING SOURCES (USES) :
Operating transfers in 2,025,000 2 ,000,000 (25,000)
Operating transfers out (1,975,000) (1,996,369) (21,369)
TOTAL OTHER FINANCING
SOURCES (USES) 50,000 3,631 (46,369) '
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER) '
EXPENDITURES AND OTHER USES (8,787,636) (165,472) 8,622,164
FUND BALANCE - BEGINNING OF YEAR 14,906,948 14,906,948 -
FUND BALANCE - END OF YEAR $ 6,119,312 $14,741,476 $ 8,622,164 '
-47- ,
1
' DEBT SERVICE FUNDS
1970 Park Bonds - 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.
Redevelopment 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 Huntington
Beach Public Facilities Corporation.
Parking Authority - This fund records the accumulation and disbursement of
' monies to meet the debt service requirements of the Parking Authority Revenue
Bonds.
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS ,
COMBINING BALANCE SHEET
June 30, 1986 ,
With comparative totals for June 30, 1985
1970 !
Park
Bonds
ASSETS: '
Cash and. investments $ 55,892
Cash with fiscal agent -
Taxes receivable 3,458 ,
Interest receivable 269
TOTAL ASSETS $ 591619 ,
FUND BALANCES:
Reserved for Debt Service $ 59,619
1
-48- ,
SCHEDULE D-1
1
' Public
Redevelopment Facilities Parking Totals
Agency Corporation Authority 1985 1984
' $ 487,432 $ - $ - $ 543,324 $ . 110,505
- 5,010,619 1,222,621 6,233,240 5,657,937
10,293 - - 13,751 9,441
' - 49,705 24,681 74,655 114,972
$ 497 ,725 $ 5,060,324 $ 1,247,302 $ 6,864,970 $ 5,892,855
$ 4971725 $ 5,060,324 $ 1,247,302 $ 6,864,970 $ 5,892,855
' -49-
CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS '
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES '
For the year ended June 30, 1986
With comparative totals for June 30, 1985 '
1970
Park ,
Bonds
REVENUES:
Property taxes $ 466,032 ,
From use of money and property 6,179
TOTAL REVENUES 472,211 ,
EXPENDITURES:
Principal retirement 260,000
Interest and fiscal charges 206,346 '
TOTAL EXPENDITURES 466,346
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,865 ,
OTHER FINANCING SOURCES (USES):
Operating transfers in '
Operating transfers out -
TOTAL OTHER FINANCING SOURCES (USES) -
EXCESS OF REVENUES AND OTHER SOURCES
OVER EXPENDITURES 5,865 '
FUND BALANCES - BEGINNING OF YEAR 53,754
Residual equity transfer out
FUND BALANCES - END OF YEAR $ 59,619
1
-50-
' SCHEDULE D-2
1
Public
tRedevelopment Facilities Parking Totals.
Agency Corporation Authority 1986 1985
' $ 404,102 $ - $ - $ 870,134 $ 549 ,312
261714 395,854 98,859 527,606 624,810
430,816 395,854 98,859 1,397,.740 1,174,122
- 590,000 110,000 960,000 960,000
' 622,204 58,400 886,950 936,104
1,212,204 168,400 1,.846,950 1,896,104
430,816 (816,350) (69,541) (449,210) (721,982)
' - 1,253,900 170,050 1,423,950 1,468,575
- (2,625) (2,625) -
1,253,900 167,425 1,421,325 1,468,575
' 430,816 437 ,550 97 ,884 972,115 746,593
66,909 4,622,774 1 ,149,418 5,892,855 5,859,901
-„ - - - (713,639)
$ 497,7t $ 5 ,060,324 $ 1 ,2471302 $ 6,864,970 $ 5,892,855
1
-`il-
'CITY OF HUNTINGTON BEACH SCHEDULE D-3
DEBT SERVICE FUNDS t
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL '
(Continued)
For the year ended June 30, 1986 '
1970 PARK BONDS
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 470,000 $ 466,032 $ (3,968) '
From use of money and property - 6,179 6,179
TOTAL REVENUES 470,000 472,211 2,211 '
EXPENDITURES:
Principal retirement 260,000 260,000 - '
Interest 215,000 206,346 8,654
TOTAL EXPENDITURES 475,000 466,346 8,654 '
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (5,000) 52865 10,865
FUND BALANCE - BEGINNING OF YEAR 53,754 53,754 - '
FUND BALANCE - END OF YEAR $ 48,754 $ 591619 $ 10,865
1
REDEVELOPMENT AGENCY
REVENUES: '
Property taxes $ 390,400 $ 404,102 $ 13,702
From use of money and property 64,000 26,714 (37 ,286) '
TOTAL REVENUES 454,400 430,816 (23,584)
FUND BALANCE - BEGINNING OF YEAR 66,909 66,909 - L
FUND BALANCE - END OF YEAR $ 521,309 $ 497,725 $(23,584)
(CONTINUED) t
-52- '
SCHEDULE D-3
CITY. OF HUNTINGTON BEACH
' DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE S- BUDGET AND ACTUAL
(Continued)
For the year ended June 30, 1986
PUBLIC FACILITIES CORPORATION
' Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
' From use of money and property $ 550,000 $ 395 ,854 $(154,146)
EXPENDITURES:
' Principal retirement 590,000 590,000 -
Interest 623,306 6221204 1,102
TOTAL EXPENDITURES 1,213,306 1,212,204 1,102
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES (663,306) (816,350) (153,044)
' OTHER FINANCING SOURCES: -
Operating transfers in 1,253,900 1,2531900
EXCESS OF REVENUE OVER
' (UNDER) EXPENDITURES 590,594 437,550 (153,044)
FUND BALANCE - BEGINNING OF YEAR 4,622,774 4,622,774 -
' FUND BALANCE - END OF YEAR $ 5,213,368 $ 5,060,324 $(153,044)
PARKING AUTHORITY
' REVENUES:
From use of money and property $ 100,000 $ 98,859 $ (1,141)
EXPENDITURES:
Principal retirement 110,000 110,000 =
Interest 58,400 58,400
TOTAL EXPENDITURES 168,400 168,400 -
' EXCESS OF REVENUE OVER
(UNDER) EXPENDITURES (68,400) (69,541) (1,141)
OTHER FINANCING SOURCES (USES):
' Operating transfers in 170,050 170,050
Operating transfers out (2,625) (2,625) -
EXCESS OF REVENUES AND OTHER -
' SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES 99,025 972884 (1,141)
' FUND BALANCE - BEGINNING OF YEAR 1,149,418 1,149,418
FUND BALANCE - END OF YEAR $ 1,248,443 $ 1,247,302 $ (1,141)
' (CONTINUED)
-53-
'CITY OF HUNTINGTON BEACH SCHEDULE D-3
DEBT SERVICE FUNDS '
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL '
(Continued)
For the year ended June 30, 1986
TOTALS ,
Variance
Favorable '
Budget Actual (Unfavorable)
REVENUES:
Property taxes $ 860,400 $ 870,134 $ 9,734
From use of money and property 714,000 5279606 (186,394) ,
TOTAL REVENUES 1,574,400 1,397,740 (176,660)
EXPENDITURES: ,
. Principal retirement 960,000 960,000 -
Interest and fiscal charges 896,706 886,950 9,756
TOTAL EXPENDITURES 1,856,706 1,846,950 9,756 ,
EXCESS OF REVENUE OVER (UNDER) '
EXPENDITURES (282,306) (449,210) (166,904)
OTHER FINANCING SOURCES: ,
Operating transfers in 1,421,325 1 ,421,325
EXCESS OF REVENUE AND OTHER
SOURCES OVER EXPENDITURES '
AND OTHER USES 1,139,019 972,115 (166,904)
FUND BALANCE - BEGINNING OF YEAR 5,892,855 5,892,855
FUND BALANCE - END OF YEAR $ 7,031,874 $ 6,864,970 $(166,904)
1
-54- '
1
y
1
1
' CAPITAL PROJECTS FUNDS
' Redevelopment Agency - This fund accounts for acquisition and construction
activity in the five Redevelopment Project Areas.
' Low Income Housing - This fund accounts for acquisition and construction
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
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.
1
1
CITY OF HUNTINGTON BEACH
CAPITAL PROJECTS FUNDS '
COMBINING BALANCE SHEET
June 30, 1986 '
With comparative totals for June 30, 1985
Redevelopment
Aptency '
ASSETS
Cash and term investments $ 1,704,176 '
Cash with fiscal agent -
Accounts receivable 6,509
Accrued interest receivable 1,550 '
Due from other' funds -
TOTAL ASSETS $ 1,712,235
LIABILITIES AND FUND BALANCES
LIABILITIES: ,
Accounts payable $ 147 ,155
Accrued payroll 7 ,983
Due to other funds - '
bDeposits 25,000
TOTAL LIABILITIES 180,138 '
FUND BALANCES (DEFICITS) :
Reserved for continuing projects 1,532,097
Unreserved - ,
TOTAL FUND BALANCES (DEFICITS) 1,532,097
TOTAL LIABILITIES AND FUND BALANCES $ 1,712,235
1
-55-
' SCHEDULE E-1
' Low Public
Income Facilities Parking Totals
Housing Corporation Authority 1986 1985
' $ 124,538 $ - $ 173,830 $ 2,002,544 $ 165,606
- 782,238 - 782,238 728,915
6,509 1,451
8,502 838 10,890 5,293
6,192
' $ 124,538 $ 790,740 $ 174,668 $ 2,802,181 $ 9071457
1
147 ,155 $ -
' 7,983 5 ,359
6, 92192
25,000
- - - 180,138 11,551
' 124,538 790,740 174,668 2,622,043 . 889,322
6,584
124,538 790,740 174,668 2,622,043 895,906
' $ 124,538 $ 790,740 $ 174,668 $ 2,802,181 $ 907 ,457
' -56-
CITY OIL HUNTINGTON BEACH ,
CAPITAL PROJECTS FUNDS '
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
For the year ended June 30, 1986
With comparative totals for June 30, 1985
Redevelopment ,
Agency
REVENUES:
Property taxes
From use of money and property 82,139
TOTAL REVENUES 82,139 '
EXPENDITURES:
Housing and Community Development 1,709,404
Capital outlay 519,379
TOTAL EXPENDITURES 2,228,783
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2,146,644) '
OTHER FINANCING SOURCES (USES): '
Operating transfers in -
Advances from General Fund 4,913,841
Proceeds from Certificates of Participation - '
Operating transfers out (1,225,000)
TOTAL OTHER FINANCING SOURCES (USES) 3,688,841
EXCESS OF REVENUES AND OTHER SOURCES OVER '
(UNDER) EXPENDITURES AND OTHER USES 1,542,197
FUND BALANCES - BEGINNING OF YEAR (10,100) '
Residual equity transfers out
FUND BALANCES - END OF YEAR $ 1,532,097
-57- ,
' SCHEDULE E-2
t
Low Public
Income Facilities Parking Totals
Housing Corporation Authority 1986 1985
' $ 101,318 $ - $ - $ _ 101,318 $ 15,026
6,53b 57,518 15,943 162,136 130,046
' 107,854 57,518 15,943 263,454 145,072
' _ _ _ 1,709,404 304,419
.519,379 56,418
2,228,783 360,837
1 107,854 57,518 15,943 (1,965,329) (215,765)
' - - 2,625 2,625 -
- 4,913,841 237,336
- _ - - (1,225,000) (44,625)
2,625 3,691,466 192,711
1
107,854 57 ,518 18,568 1,726,137 . (23,054)
' 16,684 733,222 156,100 895,906 6,180,057
- - - - - (5,261,097)
$ 124,538 $ 790,740 $ 174,668 $ 2,622,043 $ 895,906
1
1 '
-58-
' ENTZRPYIS$ FUNDS
Water Utility - This accounts for the City' s water service operations to
' residents and businesses.
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 operation's total revenues.
' Emerald Cove Housing - This fund is used to account for the operation of a
senior citizen apartment complex.
1
1
CITY OF HUNTINGTON BEACH '
ENTERPRISE FUNDS ,
COMBINING BALANCE SHEET
June 30, 1986 ,
With comparative totals for June 30, 1985
Water Utility '
ASSETS
CURRENT ASSETS:
Cash and term investments $ 4,262,193
Accounts receivable 1,283,623 '
Accrued interest receivable 21,560
Due from other funds 24,428
Prepaid expenses
TOTAL CURRENT ASSETS 5,591,804
RESTRICTED ASSETS:
Cash with fiscal agent 752,952 '
PLANT, PROPERTY AND EQUIPMENT (AT COST) :
Land 410,721 ,
Buildings and improvements 971,219
Machinery and equipment 44,656,221
Construction in process -
46,038,161 '
Less accumulated depreciation (18,440,757)
TOTAL PLANT, PROPERTY AND EQUIPMENT 27,5.97,404
TOTAL ASSETS $ 33,942,160 '
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES: '
Accounts payable $ 918,002
Accrued payroll 62,428
Deferred income
Accrued interest 6,566
Due to other funds -
Deposit:s 731,192 ,
Current portion of long-term liabilities 215,807
TOTAL CURRENT LIABILITIES 1,933,995
LONG-TER?( LIABILITIES:
Bonds payable 1 ,053,000
Note payable 321,355
Compensated absences payable 103,109
Certificates of Participation payable, net of discount of $102,367 - '
Less current portion (215,807)
TOTAL LONG-TERM LIABILITIES 1,261,657
TOTAL LIABILITIES 3,195,652 '
FUND EQUITY: :
Contributed capital 30,841,880 ,
Retained earnings:
Reserved for Debt Service
Unreserved (95,372)
TOTAL -FUND EQUITY 30,746,508 '
TOTAL LIABILITIES AND FUND EQUITY $ 33,942,160
-59- ,
' SCHEDULE F-1
Meadowlark Emerald
Golf Cove Totals
Course Housing 1986 1985
$ 452,812 $ 984,073 $ 5,699,078 $ 6,231,382
1,283,623 542,406
2,185 9,533 - 33,278 52,9115
24,428 22,208
- -
123,214
454,997 993,606 7,040,407 6,972,125
' - 739,418 1,492,370 1,459,483
3,052,004 1,288,670 4,751,395 4,751,395
260821 3,968,755 5,200,795 1,232,039
359:797 - 45,016,018 43,498,545
- - - 3,879,880
3,672,622 5 ,257,425 54,968,208 53,361,859
(436,900) (79,375) (18,957,032) (17,699,091)
3,235,722 5 ,178,050 36,011,176 35,662,768
$ 3,690,719 $ 6,9112074 $ 44,543,953 $ 44,094,376
'
$ - $ 26233 $ 944 235 $ 941,559
- 62,428 40,199
' - - - 22,208
62 36,4
16 84,544 90,405
- . 111,411 111,411 321,000
' - 24,150 755,342 781,110
25,312 241,119 227,656
66,874 198,210 2,199,079 2,424,137
- - 1,053,000 1 ,111,000
1,781 ,261 - 2,102,616 2,171,229
' - - 103,109 129,705
4,497,633 4,497,633 4,484,837
(25,312) (241,119) (227,656)
1,755,949 4,497,633 7 ,515.239 7,669,115
1,822 ,823 4,695,843 9,714,318 10,093,252
1,267,324 2,121,000 34,230,204 32,935,226
- 94,231 94,231 570,449
600,572 - 505,200 495,449
1,867,896 2,215,231 34,829,635 34,001,124
$ 3,690,719 $ 6,911,074 $ 44,543,953 $ 44,094,376
' -60-
CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS '
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ,
For the year ended June 30, 1986
With comparative totals for year ended June 30, 1985
Water ,
Utility
OPERATING REVENUES:
Water sales $ 7,912,216
Golf course rentals
Apartment_ rentals -
Other revenues 260,421
TOTAL OPERATING REVENUES 8,172,637
OPERATING EXPENSES:
Water purchases 2,881,891
Administration 211,596
Engineering 159,919
Production 2,311,984
.Maintenance 1,465,697
Contributions to General Fund in lieu of taxes 1 ,186,132
Water meters, . 542,825
Depreciation 1,173,616 '
TOTAL OPERATING EXPENSES 9,933,650
OPERATING INCOME (LOSS) (1,761,013) '
NON-OPERATING REVENUES (EXPENSES):
Interest income 478,334
Interest expense (53,664)
TOTAL NON-OPERATING REVENUES (EXPENSES) 424,670 ,
NET INCOME (LOSS) (1,336,34.3)
RETAINED EARNINGS - BEGINNING OF YEAR 449,734
Prior Period Adjustment (Note 15) 791,237
RETAINED EARNINGS - END OF YEAR $ (95,372) '
-61-
' SCHEDULE F-2
Meadowlark Emerald
Golf Cove Totals
Course Housing 1986 1985
$ - $ - $ 7,912,216 $ 7,310,579
218,437 - 218,437 209,425
562,640 562,640 168,525
- 13,186 273:607 197,942
' 218,437 575,826 8,966,900 7 ;886,471
- 2,881,891 1,736,542
151,947 363,533 323,515
- 159,919 203,826
- 2,311,984 2,322,513
78,995 1,544,692 1,609,019
- 1,186,132 1,097,165
' - - 542,825 520,017
32,587 79,375 1,285,578 1 ,230,361
_ 32,587 310,317 10,276,554 9,042,958
185,850 265,509 (1,309,654) (1,156,487)
45,065 157 ,802 681,201 653,771
(125,792} (449,795) (629,251) (183,524)
' (80,727) (291,993) 51,950 470,247
105,123 (26,484) (1,257,704) (686,240)
495,449 120,715 1,065,898 1,752,138
- - 791,237 -
' $ 600,572 $ 94,231 $ 599,431 $ 1,065,898
-62-
V
CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
For the year ended June 30, 1986 ,
With comparative totals for year ended June 30, 1985
Water
Utility. '
SOURCES OF WORKING CAPITAL:
Operations:,
Net income (loss) $(1,3369343)
Items not requiring working capital: '
Depreciation 1,173,616
Working capital provided by operations (162,727)
Contributions from developers 1,294,978
Contributions from Redevelopment Agency -
Sale of equipment -
Reduction in Restricted Assets - '
TOTAL SOURCES OF WORKING CAPITAL 1,132,251
USES OF WORKING CAPITAL: '
Increase in plant, property and equipment, net 1,445,339
Increase in restricted assets 66,892
Decrease in long-term note payable 44,957
Decrease in long-term bonds payable 69,807 '
Decrease in compensated absences payable 26,596
TOTAL USES OF WORKING CAPITAL 1,653,591 '
NET INCREASE (DECREASE) IN WORKING CAPITAL $ (521,340)
ELEMENTS OF NET INCREASE (DECREASE) IN WORKING CAPITAL: '
Cash and term investments $ (483,020)
Interest receivable (6991) ,
Accounts receivable (50:020)
Due from other funds 2,220
Prepaid expenses '
Other assets -
Accounts payable (2 628)
Accrued payroll (22 229)
Deferred income 22,208 '
Accrued interest payable 5,309
Due to other funds _
Due to other entities - '
Deposits 25 618
Current portion of bonds and note payable (11,807)
NET INCREASE (DECREASE) IN WORKING CAPITAL $ (521,340) '
0
-63-
' SCHEDULE F-3
Meadowlark Emerald
Golf Cove Totals
' Course Housing 1986 1985
$ 105,123 $ (26,484) $(1,257,704) $ (686,240)
32,587 79,375 1,285,578 1,230,361
137,710 52,891 27.,874 544,121
= _ 1,294,978 8,922
2,121,000
2,770 - 2,770 4,600,000
- 34,005 34,005 -
' 140,480 86,896 1,359,627 7 274 14.3
' - 191,417 1,636,756 5,302,507
- - 66,892 839,129
' 25,312 - 70,269 66,570
69,807 160,000
- 26,596 802
25,312 191,417 1,870,320 6,3691008
$ 115,168 $ (104,521) _$ (510,693) $ 905,135
$ 116,104 $ (165,388) $ (532,304) $ 1,641,866
' 168 (12,814) (19,637) 5 ,957
(50,020) 64,698
2,220 22,208
(136,010) (136,010) 238,377
(32,269)
(48) (2,676) (310,458)
- (22,229) (8,980)
- - 22,208 (22,208)
552 209,589 215,450 (35,899)
- - - (320,045)
- - (90,082)
150 25,768 (244,482)
(1,656) - (13,463) (3,548)
i $ 1�168 $ 104,521 $ (5101693) $ 905,135
' -64-
1
t
1
' UMRHAL SERVICB FUNDS
Self Insurance - This fund accounts for the City' s self insurance activities
(liability, health and workers' compensation) .
1
Equipment Replacement - This fund accounts for the purchase and operation of
' certain vehicles and equipment leased to City departments.
1
1
1
' SCHEDULE G-1
CITY OF HUNTINGTON BEACH
' INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
' June 30, 1986
With comparative totals for June 30, 1985
Self Equipment Totals
ASSETS Insurance Replacement 1986 1985
' CURRENT ASSET:
Cash and term investments $ 3,562,240 $ 3,115,927 $ 6,678,167 $.5,384,402
Accounts receivable 14,645 - 14,645 8,498
Interest receivable 17,073 15,036 32,109 32,495
Due from other funds
TOTAL CURRENT ASSETS 3,593,958 3,130,963 6,724,921 5,425,395
' PROPERTY AND EQUIPMENT (AT COST):
Machinery and equipment - 1,944,035 1,944,035 245,339.
Accumulated depreciation - (132,023) (132,023) (24,012)
TOTAL PROPERTY AND
EQUIPMENT - 1,812,012 1,812,012 221,327
1 TOTAL ASSETS $ 3 593 958 $ 4,942,975 $ 8,536,933 $ 5,646,722
' LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
' Accounts payable $ 14,635 $ 14,413 $ 29,048 $ 72,908
Accrued payroll 34,463 34,463 24,807
' TOTAL CURRENT LIABILITIES 49,098 14,413 63,511 97,715
LIABILITY FOR SELF-INSURANCE CLAIMS:
Workers compensation 2,895,000 - 2,895,000 3,150,000
' Health 290,000 _ 290,000 290,000
General liability 2,440,000 2,440,000 12746,000
' TOTAL LIABILITY FOR SELF-INSURANCE CLAIMS 5,625,000 - 5,625,000 561865000
TOTAL LIABILITIES 5,674,098 14,413 5,688,511 5,283,715
FUND EQUITY:
Contributions from General Fund - 2,500,000 2,500,000 2,000,000
' Retained earnings (deficit)/
unreserved (2,080,140) 2,428,562 (348,422) (1,636,993)
' TOTAL FUND EQUITY (DEFICIT) (2,080,140) 4,928,562 2,848,422 363,007
TOTAL LIABILITIES AND FUND
EQUITY $ 3,593,958 $ 4,942,975 $ 8,536,933 $ 5,646,722
1
-65-
'CITY. OF HUNTINGTON BEACH SCHEDULE G-2
INTERNAL SERVICE FUNDS '
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS '
June 30, 1986
With comparative totals for June 30, 1985 '
Self Equipment Totals
Insurance Replacement 1986 1985
OPERATING REVENUES:
Charges for service $ 5,543,657 $ 1,658,402 $ 7,202,059 $ 3,930,147 '
OPERATING EXPENSES:
Administration and general 1,671,408 52,102 1,723,510 1,3740151
Depreciation - 108,065 108,065 24,012 '
Workers compensation claims 934,635 - 934,635 1,335,139
Employee medical claims 1,792,779 - 1,792,779 1,780,428
Liability claims 1,380,738 - 1,380,738 977,958 '
TOTAL OPERATING EXPENSES 5,779,560 160,167 -5 939,727 5,491,688
OPERATING INCOME (LOSS) (235,903) 1,498,235 1,263,332 (1,561,541) '
NON-OPERATING REVENUES: '
Interest income 394,625 328,458 723,083 590,601
NET INCOME (LOSS) 158,722 1,826,693 1,985,415 (970,940)
RETAINED EARNINGS (DEFICIT)
BEGINNING OF YEAR (2,238,862) 601,869 (1,636,993) (666,053)
RETAINED EARNINGS (DEFICIT)
END OF YEAR $(2,080,140)$ 2,429,562 $ 348,422 $(1,636,993)
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' CITY OF HUNTINGTON BEACH SCHEDULE G-3
' INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
' June 30, 1986
With comparative totals for June 30, 1985
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Self Equipment Totals
' Insurance Replacement 1986 1985
SOURCES OF WORKING CAPITAL:
Operations:
Net income (loss) $ 158,722 $ 1,826,693 $ 1,985,415 $ (970,940)
Items .not requiring working
capital:
Depreciation - 108,065 108,065 24,012
Working capital provided
(used) by operations 158,722 1,934,758 2,093,480 (946,928)
Increase in self-insurance
' claims payable 439,000 - 439,000 719,000
Contribution from General Fund 500,000 500,000 2,000,000
TOTAL SOURCES OF WORKING
CAPITAL 597,722 2,434,758 3,032,480 1,772,072
USES OF WORKING CAPITAL:
' Acquisition of fixed assets - 12698,750 1,698,750 245,339
NET INCREASE (DECREASE)
' IN WORKING CAPITAL $ 597,722 736,008 $ 1,333,730 $ 1,526,733
ELEMENTS OF INCREASE (DECREASE)
' IN WORKING CAPITAL:
Cash and term investments $ 545,602 $ 748,163 $ 1,293,765 $ 1,486,532
Accounts receivable 6,147 - 6,147 7,496
Interest receivable (1,079) 693 (386) (5,844)
Due from other funds - - - (25,427)
Accounts payable 56,708 (12,848) 43,860 57,044
Accrued payroll (9,656) - (9,656) 6,932
' NET INCREASE (DECREASE)
IN WORKING CAPITAL $ 597,722 $ 736,008 $ 1,333,730 $ 1,526,733
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AGENCY FUND
' Employee Deferred Compensation - This fund accounts for the deposit of monies
authorized by employees to be withheld form 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, or any later date.
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SCHEDULE H-1
CITY OF HUNTINGTON BEACH
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
June 30, 1986
' June 30, June 30,
EMPLOYER DEFERRED COMPENSATION FUND 1985 Additions Reductions 1986
ASSETS:
Cash with fiscal agent $ 5,557,056 $ 2,070,691 $ 493,170 $ 7,134,577
Notes receivable, net of
allowance for amounts uncollectable 145,606 -
27,716 117,890
Other assets 29,375 - - 29,375
' TOTAL ASSETS $ 5,732,037 $ 2,070,691 $ 520,886 $ 7,281,842
' LIABILITIES:
Note payable $ 28,800 $ - $ 300 $ 28,500
Employee deferred compensation 5,703,327 1,716,094 165,989 7,253,342
TOTAL LIABILITIES $ 5,732,037 $ 1,716,094 $ 166,289 $ 7,281,842
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GENERAL FT BBD 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.
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' SCHEDULE I-1
CITY,OF-HUNTINGTON BEACH
' STATEMENT OF -GENERAL FIXED ASSETS
June 30, 1986
GENERAL FIXED ASSETS:
Land $ 30,864,013
' Buildings 25.,158,461
Improvements. other than buildings 7 ,582,167
Machinery and equipment 9,333,328
Construction in progress -
TOTAL GENERAL FIXED ASSETS $ 72,937,969
' INVESTME14TS IN GENERAL FIXED ASSETS FROM:
General Fund $ 17,754,282
Special Revenue Funds 13,363,634
' Capital Projects Funds 21,216,765
Donations 20,603,288
' TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 72,937,969
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SCHEDULE I-2 ,
CITY OF HUNTINGTON BEACH
:SCHEDULE OF 'GENERAL FIXED ASSETS ,
BY FUNCTION AND ACTIVITY
June 30, 1986 ,
Improvements Machinery
Other Than and '
Function and Activity Total Land Building Buildings Equipment
General Government:
City Council $ 7,595 $ - $ - $ 7,595
City Clerk 5,095 - - 5,095
City Attorney 3,063 - - 3,063 -
City Treasurer 16,063 - - 16,063
City Administrator 4,147 - - 4,147 -
Total General
Government 35,963 - - 35,963 -
Administrative Services 1,517,533 - - 1 ,408,125 109,408
Development Services 81,361 - - 11,578 69,783 '
Public Safety 8,156,993 - 3,902,434 1,148,749 3,105,810
Community Services 42,202,020 30,444,562 8,887,107 2,258,669 611,682 '
Public Works 11 ,445,607 - 3,289,879 2,719,083 5,4361645
Non Departmental 9,498,492 419,451 9,079,041 - -
Total General ,
Fixed Assets $72,937,969 $30,864,013 $25.158,461 $ 7,582,167 $9,333,328
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CITY OF HUNTINGTON BEACH SCHEDULE I-3
SCHEDULE OF CHANGES IN FIXED ASSETS
BY FUNCTION AND ACTIVITY
June 30, 1986
General General
Fixed Assets Fixed Assets
July 1, 1985 Additions Deletions June 30, 1986
' General Government: - -
City Council $ 7,595 $ $ $ 7,595
City Clerk 5 ,095 - - 5 ,095
City Attorney 3,063 _ _ 3,063
City Treasurer 16,063 16,063
City Administrator 4,147 - - 4,147
Total General Government 35,963 -
35,963
Administrative Services 1,326,490 198,996 7,953 1,517,533
' Development Services 94,350 2,315 15,304 81,361
Public Safety 7,146,142 1,214,801 203,950 8,156,993
Community Services 36,045,107 6,198,550 .41,637 42,202,020
' Public Works 11,351,719 222,832 128,944 11,445,607
Non Departmental 9,498,492 - - 9,498,492
' Construction in progress 1,119,580 - 1,119,580 -
Total General
' Fixed Assets $ 66,617,843 $ 7,837,494 $ 1,517,368 $ 72,937,969
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GENERAL LONG-TERM! DEBT ACCOUNT GROUP
iThis 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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SCHEDULE J-1
CITY OF HUNTINGTON BEACH
' STATEMENT OF CHANGES IN GENERAL LONG-TERM DEBT
June 30, 1986
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Outstanding Outstanding
' June 30, June 30,
1985 Additions Retirements 1986
1910 Park Bonds $ 3,425,000 $ - $ 260,000 $ 3,165,000-
Public Facilities Corporation -
Leasehold Mortgage Bonds 11,440,000 590,000 10,850,000
Parking Authority Revenue Bonds 1,170,000 - 110,000 1,060,000
' California Coastal Conservancy -
Note Payable 208,900 216,100 425,000
Compensated absences_ 2,958,925 318,944 3,277,869
Equipment leases 212,331 - 212,331 -
Due to other funds 5,994,195 558311662 11,825,857
Totals $ 25,409,351 $ 6,366,706 $ 1,172,331 $ 30.603,726
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