HomeMy WebLinkAboutFY 1992/1993 Comprehensive Annual Financial Report FY 6/3 � City of
� Huntington Beach
� California
1
� Comprehensive Annual
1
� Financial Rep ort
1 For the Fiscal Year Ended
� June 30, 1993
1
Emerald Cove Fund net income increased because of a prior year charge of$357,000 due to refinancing of '
long-term debt. Emergency Fire Medical Fund income increased because of a prior year charge of
$750,000 for uncollectible accounts. Refuse Fund income decreased because of increased refuse costs ,
from the City's contractor and$250,000 of overhead charges transferred to the General Fund that was not
transferred in the prior year. Water Fund income decreased due to increased operational costs and an
additional $1.5 million of General Fund costs identified and transferred to the General Fund that was not
transferred in the prior year. Meadowlark Golf Course Fund net income decreased due to losses ,
recognized on sale of golf course assets and $25,000 transferred to the General Fund for overhead costs
that was not charged in the prior year.
Shown below is a table comparing the performance of the City's internal service funds to the prior year(in
thousands):
INTERNAL SERVICE FUNDS Equipment Equipment '
Self-Insurance Self Insurance Replacement Replacement
1992/93 1991/92 : 1992/93 1991/92 ..
Operating Revenues $7,036 $7,092 $2,448 $2,141 '
Operating Income(Loss) (3,251) (2,967) (822) (1,596)
Net Income(Loss) (3,216) 3,582 (371) (960
The Self-Insurance Fund net loss decreased due to a prior year transfer of$1.5 million to the Capital ,
Improvement Fund that did not occur during this year. The Equipment Replacement Fund net loss
decreased due to reduced equipment purchases. Depreciation accounts for $2,792,000 of the 1992/93
expense in the Equipment Replacement Fund. Since depreciation is a non cash expenditure, actual '
resources for equipment replacement increased during the year.
Pension Obligations '
The City participates in the California Public Employment Retirement System(CALPERS)which sets the
rates the City uses to make contributions on behalf of all eligible employees. At June 30, 1992, which is
the most recent information available from CALPERS, the City's total future pension obligation for all '
current and retired employees was $189,817,000 and assets available for these obligations was
$183,591,000 leaving an unfunded obligation of$6,226,000.
The City also maintains a supplemental retirement plan. An independent actuarial study performed as of ,
June 30, 1993 showed the total unfunded pension liability for this plan was $12,975,000. The
contribution rate required to fund this plan is 3.16%of total salary. During the next two years, a plan will
be developed to fund these benefits.
Aeencv Funds
Total assets and liabilities of the City's agency funds increased by $4,341,000, or 17.5%to$29,094,000.
This is due to increased employee participation in the City's deferred compensation plan and the ,
beginning of the Central Net Joint Powers operation which is recorded in an agency fund.
viii ,
Debt Administration
The City's outstanding long-term debt at year-end was(in thousands):
General Obligation Bonds:
1970 Park Bonds $860
' Reservoir Hill Assessment District Bonds 1,395
Community Facilities District: Mello-Roos Bonds 2,375
Revenue Bonds:
Parking Authority Bonds 115
' Public Financing Authority Bonds
(Redevelopment Agency) 33,495
Certificates of Participation:
Emerald Cove Housing(Redevelopment Agency)
5,710
Civic Improvement Corporation 38,245
Public Financing Authority 3,525
Leasehold Mortgage Bonds:
Public Financing Authority 1,710
Notes Payable:
Meadowlark Golf Course(including current 1,561
portion)
Notes Payable 993
Other:
Compensated Absences 5,578
Self-Insurance Claims 14,120
Arbitrage Rebates 88
1 Redevelopment Agency Advances from Other
Funds 114,573
Total $224.343
Moody's Investor's Service rates certain obligations as to their safety as an investment. Below are the
ratings of certain City obligations:
1970 Park Bonds Aa
Civic Improvement Corporation Certificates of Participation Al
Public Facilities Corporation Leasehold Mortgage Bonds Al
Parking Authority Revenue Bonds Al
Public Financing Authority 1989 Certificates of Participation(Insured) ___Aaajl
' The City's legal debt limitation for general obligation bonds is 12%of the total of assessed valuation in
ty g 8 g
the city. At June 30, 1993 the City's general obligation debt was $1.4 billion less than its legal debt
' limitation.
Notes 12 and 13 to the General Purpose Financial Statements include further information on the City's
' long-term debt.
ix
Cash Management '
The City Treasurer invests available cash in allowable instruments. These include insured or
collateralized certificates of deposit, certain government securities, five years or less commercial paper '
rated A or better,the Orange County Investment Pool, and the State Local Agency Investment Fund. The
cash management system of the City monitors and forecasts revenues and expenditures to maximize
investment capabilities. The criteria for selecting investments are, in order of priority, (1) safety, (2)
liquidity, (3) yield. Further information on the City's investments is detailed on note 3 to the general
purpose financial statements. The investment of non-restricted cash and investments yielded interest of
$7,111,584 for an average of 6.5%during the year.
The California Government Code requires the City Treasurer to prepare an annual statement of ,
investment policy and monthly report containing specific information about the City's investment policy.
The City Treasurer has complied with this law. Note 3 to the General Purpose Financial Statements '
includes further information on the City's cash and investments.
Risk Management
The City is self-insured for liability, worker's compensation and employee health claims. The City is a '
member of the Big Independent Cities Excess Pool (BICEP) which provides coverage for liability claims
in excess of$1 million. The City also maintains privately purchased insurance coverage for worker's
compensation and employee health claims in excess of certain amounts. At year-end, the City estimated ,
how much cash will be eventually paid due to claims made through June 30, 1993 and set aside sufficient
cash to pay these claims.
OTHER INFORMATION '
The Single Audit Act of 1984 requires the City's grant programs that use Federal funds, either directly or
passed through from other agencies, to be subjected to special audit procedures. This includes test of '
compliance with Federal laws and regulations and an organization-wide examination of financial
operations. Copies of this audit are available from this office.
This report includes the financial activity of separate legal entities whose activities the City controls. ,
These entities are the:
Redevelopment Agency of the City of Huntington Beach
Huntington Beach Public Facilities Corporation
Huntington Beach Public Financing Authority
Huntington Beach Civic Improvement Corporation
Parking Authority of the City of Huntington Beach
Component unit reports (stand-alone reports) are available for the Redevelopment Agency, the Public ,
Facilities Corporation and the Public Financing Authority.
Financial Renorting Certificates
The city prepares easily readable and efficiently organized Comprehensive Annual Financial Reports. '
The Government Finance Officer's Association (GFOA) awarded the City a Certificate of Achievement
for Excellence in Financial Reporting, which is the highest form of recognition for municipal financial
reporting for its June 30, 1992 report. The certificate is valid for a period of one year only. The GFOA
awards the certificate to governmental agencies whose reports conform substantially with high standards
of public financial reporting.
We believe that this year's report conforms to the award program's requirements and we will submit it to '
the GFOA for review.
x ,
' Acknowledements
We wish to thank the City Council and the various City departments for conducting the fiscal affairs of
Huntington Beach in a responsible manner. We would also like to thank Robert Sedlak, Principal
Accountant, for his work in the preparation of this report. We would also like to thank Enrique Reveles
for his work in preparing the report cover.
Sin ,
an T. Villella,
Direct f Fi ce-
7
Robert I Franz
' Deputy City Administrator/A inistrative Serv' es Department
CITY OF HUNTINGTON BEACH
' PRINCIPAL CITY OFFICIALS
CITY COUNCIL
Grace Winchell Mayor
Linda Moulton-Patterson Mayor Pro-Tem
1 Ralph Bauer Councilmember
Victor Leipzig Councilmember
Earle Robitaille Councilmember
' Jim Silva Councilmember
Dave Sullivan Councilmember
OTHER ELECTED OFFICIALS
Connie Brockway City Clerk
Gail Hutton City Attorney
Donald Watson City Treasurer
ADMINSTRATIVE OFFICIALS
Michael Uberuaga City Administrator
Ray Silver Assistant City Administrator
Robert J. Franz Deputy City Administrator/Administrative Services
Barbara Kaiser Deputy City Administrator/Economic Development
Michael Dolder Fire Chief
Ron Hagan Community Services Director
Ron Hayden Library Director
Ron Lowenberg Police Chief
Lou Sandoval Public Works Director
FINANCE AND ACCOUNTING PERSONNEL
Dan Villella Director of Finance
Wayne Lee Accounting Officer
Annabelle Richards Principal Accountant
Robert Sedlak Principal Accountant
Valaya Hull Senior Accountant
Joe Kraus Senior Accountant
Noi Nguyen Senior Accountant
Enrique Reveles Senior Accountant
Arnold Ross Senior Accountant
Debbie Hack Accounting Tech IV
Sandra Mears Accounting Tech IV
Carolyn Baker Accounting Tech III
' Arlene Dayton Accounting Tech III
Joanne Varga Accounting Tech III
Dulce Courtney Accounting Tech II
xii
PEOPLE
CITY COUNCIL CITY CITY CITY ATTORNEY=1 TREASURER CLERK
CITY
ASSISTANT CITY ADMINISTRATOR
ADMINISTRATOR
DIRECTOR DEPUTY CITY
OP SPECIAL
PROJECTS ADMINISTRATOR
PUBLIC
INFORMATION
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xiii
CITY OF HUNTINGTON BEACH ,
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL '
For the Year Ending June 30, 1993
(Continued)
(In Thousands)
Public Financing Authority ,
Variance '
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $3,096 $1,529 ($1,567)
EXPENDITURES '
Current:
Non-Departmental 35 35
Debt Service
Interest 3,739 1,718 2,021 ,
TOTAL EXPENDITURES 3,774 1,753 2,021
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (678) (224) 454
FUND BALANCE,BEGINNING OF YEAR 35,739 35,739
FUND BALANCE-END OF YEAR $35.061 $35.515 S454
Reservior Hill Assessment District '
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $147 $192 $45 '
From Use of Money and Property 10 12 2
TOTAL REVENUES 157 204 47
EXPENDITURES
Current: '
Non-Departmental 8 8
Debt Service
Principal 45 195 (150)
Interest 118 122 (4) '
TOTAL EXPENDITURES 171 325 (154)
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (14) (121) (107)
FUND BALANCE,BEGINNING OF YEAR 397 397 ,
FUND BALANCE-END OF YEAR $383 $276 (5107)
t
711 '
' CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(In Thousands)
' Civic Improvement Corporation
Varienoe
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $185 $164 ($21)
' EXPENDITURES
Current:
Non-Departmental 2,525 2,525
Debt Service
' Principal 465 465
Interest 2,472 2,472
TOTAL EXPENDITURES 5,462 5,462
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (5,277) (5,298) (21)
OTHER FINANCING SOURCES(USES)
Operating Transfers In 2,750 2,821 71
Proceeds of Long-Term Debt 38,245 38,245
Payments to Escrow (35,851) (35,851)
' Total Other Financing Sources(Uses) 5,144 5,215 71
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (133) (83) 50
' FUND BALANCE,BEGINNING OF YEAR 3,032 3,032
FUND BALANCE-END OF YEAR $2,899 $2,949 $50
TOTAL DEBT SERVICE FUNDS
variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $5,203 $4,358 ($845)
From Use of Money and Property 3,690 2,480 (1,210)
TOTAL REVENUES 8,893 6,838 (2,055)
EXPENDITURES
Current:
' Community Services 18 3 15
Non-Departmental 3,590 3,512 78
Debt Service
Principal 1,644 2,089 (445)
Interest 9,415 7,121 2,294
TOTAL EXPENDITURES 14,667 12,725 1,942
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (5,774) (5,887) (113)
1 OTHER FINANCING SOURCES(USES)
Operating Transfers In 3,149 3,220 71
Proceeds of Long-Term Debt 38,762 38,762
Payments to Escrow (35,851) (35,851)
' Total Other Financing Sources(Uses) 6,060 6,131 71
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES 286 244 (42)
' FUND BALANCE,BEGINNING OF YEAR 46,886 46,886
Residual Equity Transfers Out (100) (99) 1
FUND BALANCE-END OF YEAR $47.072 E47,031 (S41)
r79
CAPITAL PROJECTS FUNDS account for the acquisition and
' construction of capital assets other than those financed by proprietary
fund types.
The Parking Structure Capital Proiects Fund records the construction
of parking structures in the Main/Pier Project Area of the
Redevelopment Agency.
The Redevelopment Agency Capital Proiects Fund accounts for
acquisition and construction in the five project areas.
The Low-Income Housing Fund accounts for the 20% set-aside of tax
' increment revenues required by the California Health and Safety
Code.
' The Library Expansion Fund accounts for capital improvements
made to the Central Library.
' The Parking Authority Capital Proiects Fund accounts for capital
improvements made by the Parking Authority of the City of
Huntington Beach.
The Capital Improvement Fund accounts for major capital
' improvements not made by other capital projects funds or proprietary
funds.
The Pier Rebuilding Fund accounts for the rebuilding of the City's
pier.
The Mello-Roos Assessment District Capital Projects Fund accounts
for expenditures made from the Community Facilities District bonds.
The Reservoir Hill Assessment District Capital Projects Fund
' accounts for expenditures made from the Reservoir Hill Assessment
bonds.
' The Art Center Fund accounts for capital improvements made to the
City's new art center.
1
CITY OF HUNTINGTON BEACH '
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
JUNE 30,1993 WITH COMPARABLE TOTALS FOR JUNE 30,1992 '
(IN THOUSANDS)
Parldng Redevelopment Low4neome
ASSETS Structure Agency Housing Librery Expansion Parking Authority ,
Cash and Investments $6,295 $6,333 $3,764 $3,161 $45
Cash With Fiscal Agent
Taxes Receivable 41
Other Receivables 716 1 '
Advances to Other Funds 517 116
Land Held for Resale(Net) 15,468
TOTAL ASSETS $6,295 $22,517 $4,322 $3,162 $161
LIABILITIES AND FUND EQUITY '
LIABILITIES:
Accounts Payable $16 $11 '
Other Accrued Liabilities 21
Deposits 20
Due to Other Funds 4,815
Deferred Revenue 16 '
TOTAL LIABILITIES 4,872 11 16
FUND EQUITY
Reserved Equity
Reserved for Land Held for Resale 15,468 '
Reserved for Encumbrances 3,832 470 3,162
Reserved for Long-Term Receivables 517 100
Reserved for Capital Projects 6,295 500
Total Reserved Fund Equity 6,295 19,300 1,487 3,162 100
Unreserved Equity '
Designated for Future Expenditures 2,675
Undesignated (1,655) 149 45
Total Unreserved Fund Equity (1,655) 2,824 45 '
TOTAL FUND EQUITY 6,295 17,645 4,311 3,162 145
TOTAL LIABILITIES AND FUND EQUITY $6,295 $22,517 $4,322 53.162 5161
80 '
Mello-Roos Reservior Hill
Capital Pier Rebuilding Assessment Assessment
Improvement Fund Fund District District Art Center Fund Total 1993 Total 1992
$2,180 $1,220 $14 $2 $23,014 $32,072
361 361 620
41 85
264 981 264
276 909 365
15,468 24,120
$2,456 $1,484 $375 $2 $40,774 $57,526
$148 $21 $196 $728
21 21
20 20
4,815
76 92 64
224 21 5,144 833
15,468 24,120
1,344 235 9,043 6,047
200 817 303
6,795 18,776
' 1,544 _ 235 32,123 49,246
2,675 7,447
688 1,228 375 2 832
688 1,228 375 2 3,507 7,447
' 2,232 1,463 375 2 35,630 56,693
$2,456 $1,484 $375 $2 $40,774 $57526
' 81
CITY OF HUNTINGTON BEACH '
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ,
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(IN THOUSANDS)
Parldng Redrdabpwd Low-Income
REVENUES: Structure Agsry Housing Library Expansion Parking Authority
Property Taxes $906 '
Other Taxes 353
Licenses and Permits 17
From Use of Money and Property 588 1,038 282 255 7
From Other Agencies ,
Charges for Current Service 125
Other 120 748
TOTAL REVENUES 588 1,528 1,188 1,128 7
EXPENDITURES ,
Current:
Administrative Services
Economic Development 1,505 244
Community Services 37 '
Public Works 19
Non-Departmental 10,249
Capital Outlay 100 2,426 70 3,832 51
Debt Service
Principal
Interest
TOTAL EXPENDITURES 100 14,180 314 3,851 88
EXCESS OF REVENUES OVER(UNDER) ,
EXPENDITURES 488 (12,652) 874 (2,723) (81)
OTHER FINANCING SOURCES(USES)
Operating Transfers In ,
Proceeds of Long-Term Debt 263
Payments to Escrow
Operating Transfers Out (900) (80)
TOTAL OTHER FINANCING SOURCES(USES) (900) 263 (80) ,
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES _ (412) (12,389) 794 (2,723) (81) ,
FUND BALANCE,BEGINNING OF YEAR 10,536 34,246 3,517 1,954 226
Prior Period Adjustments (4,022)
FUND BALANCE AS RESTATED 10,536 30,224 3,517 1,954 226
RESIDUAL EQUITY TRANSFERS '
Residual Equity Transfers In 12 3,931
Residual Equity Transfers Out (3,841) (190)
TOTAL RESIDUAL EQUITY TRANSFERS (3,829) (190) 3,931
FUND BALANCE-END OF YEAR $6,295 $17.645 $4,311 $3,162 $145
1
82 ,
Mello-Roos Reservior Hill
Capital Pier Rebuilding Assessment Assessment
Improvement Fund Fund District District Art Center Fund Total 1993 Total 1992
$906 1,046
353 222
17
219 296 16 1 2,702 5,892
2
125 97
296 463 1,627 2,254
219 592 16 1 463 5,730 9,513
' 52
1,749 1,780
' 37 80
19 18
1 10,250 504
2,074 766 255 9,574 27,565
5,071
508
2,074 766 256 21,629 35,578
' (1,855) (174) (240) 1 463 (15,899) (26.065)
' 1,671
263 46,410
(4,941)
(421) (15) (1,416) (775)
' (421) (15) (1,153) 42,365
(2,276) (174) (255) 1 463 (17,052) 16,310
3,943 1,637 630 1 56,690 76,253
(4,022)
3,943 1,637 630 1 52,668 76,253
565 4,508 4,859
(463) (4,494) (40,719)
- 565 (463) 14 (35,860)
$2,232 $1,463 $375 $2 $35,630 $56,693
83
ENTERPRISE FUNDS account for operations similar to private
' businesses. The City's intent is to recover the costs to the general
public through user charges or where the City wishes to periodically
' determine net income.
. The Water Fund accounts for the City's water services.
The Meadowlark Golf Course Fund accounts for the opeations of the
Meadowlark Golf Course owned by the City and leased to a private
business.
The Emerald Cove Housing Fund accounts for the operations of a
senior-citizens apartment comples.
' The Emergency Fire Medical Fund acounts for the user-fee portion of
the City's paramedic service.
The Refuse Fund accounts for the City's refuse collection program.
1
CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING BALANCE SHEET ,
June 30,1993
(With Comparative Totals for June 30,1992)
(IN THOUSANDS) ,
Meadowlark Golf Emerald Cove Emergency Fire
ASSETS: Water Utility Course Housing Medical Refuse Collection Total 1993 Total 1992
Current Assets
Cash and Investments $14,008 $2,128 $2,096 $129 $18.361 $18,188 '
Accounts Receivable 790 1 1,506 384 2,681 2,451
Interest Receivable
Due from Other Funds
Inventory 609 609 730 '
Unbilled Receivables 1,216 413 1,629 1,749
Total Current Assets 16,623 2,129 2,096 1,506 926 23,280 23,118
Other Assets:
Cash With Fiscal Agent 478 478 482
Investment in Joint Venture
Advances to Other Funds 4,723 4,723 4,427
Total Other Assets 4,723 478 5,201 4,909
Plant,Property and Equipment
Land 391 3,052 1,289 4,732 4,731
Buildings 2,708 4,102 6,810 7,052
Machinery and Equipment 53,128 155 342 53,625 52,262
Construction in Process 35 35 ,
Subtotal 56,262 3,207 5,391 342 65,202 64,045
Less Accumulated Deprecation (27,119) (151) (656) (102) (28,028) (26,552)
Total Pant,Property and Equipment 29,143 3,056 4,735 240 37,174 37,493
TOTAL ASSETS $50,489 $5,185 $7,309 $1,746 $926 $65,655 $65,520 '
LIABILITIES AND FUND EQUITY
LIABILITIES
Current Liabilities '
Accounts Payable $265 $33 $495 $793 $833
Accrued Payroll 98 36 1 135 107
Accrued Interest 37 128 165 164
Deposits 1,952 25 1,977 2,047
Due to Other Funds 287 287 72
Current Portion of Long-Term Debt 40 75 115 68
Total Current Liabilities 2,315 77 228 356 496 3,472 3,291
Long-Term Liabilities
Notes Payable 1,561 1,561 1,599
Certificates of Participation 5,710 5,710 5,718
Compensated Absences 211 25 236 297
Advances from Other Funds 243 243 244 '
Less Current Portion (40) (75) (115) (68)
Total Long-Term Liabilities 211 1,521 5,878 25 7,635 7,790
TOTAL LIABILITIES 2,526 1,598 6,106 381 496 11,107 11,081
FUND EQUITY ,
Contributed Capital 37,989 1,267 1,288 311 40,855 40,855
Retained Earnings(Accumulated Deficit) 9,974 2,320 (85) 1,054 430 13,693 13,584
TOTAL FUND EQUITY 47,963 3,587 1,203 1,365 430 54,548 54,439
TOTAL LIABILITIES AND FUND EQUITY $50,489 $5,185 $7,309 $1,746 $926 $65,655 $65,520 ,
84 ,
' CITY OF HUNTINGTON BEACH
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS(ACCUMULATED DEFICITS)
FOR THE YEAR ENDING JUNE 30,1993
(With Comparative Totals for June 30,1992)
(IN THOUSANDS)
MeadaMark Golf Emerald Cove Emergency Fire
OPERATING REVENUES Water Utility Course housing Medical Refuse Collection Total 1993 Total 1992
' Sales $15,458 $15,458 14,899
Rentals 290 597 887 969
Fees for Service 2,141 6,138 8,279 8,636
Other 291 291 393
' TOTAL OPERATING REVENUES 15,749 290 597 2,141 6,138 24,915 24,897
OPERATING EXPENSES
Water Purchases 2,765 2,765 1,921
Administration and Contract Services 2,90 37 276 1,882 6,128 11,286 9,879
' Engineering 291 291 421
Production 4,280 4,280 2,844
Maintenance 1,200 1,200 1,040
Water Meters 1,128 1,128 1,013
Water Quality 350 350 315
In-Lieu Taxes to General Fund 2,221 2,221 2,158
Depreciation 1,368 1 82 54 1,505 1,523
TOTAL OPERATING EXPENSES 16,566 38 358 1,936 6,128 25,026 21,114
OPERATING INCOME(LOSS) (817) 252 239 205 10 (111) 3,783
NON-OPERATING REVENUES(EXPENSES)
Interest Income 1,731 156 181 1 14 2,083 1,380
Joint Venture Income 293 293
' Interest Expense (111) (407) (518) (715)
Issuance Costs
TOTAL NON-OPERATING REVENUES(EXPENSES) 2,024 45 (226) 1 14 1,858 665
' NET INCOME BEFORE OPERATING TRANSFERS,
AND EXTRAORDINARY ITEMS 1,207 297 13 206 24 1,747 4,448
' OPERATING TRANSFERS
Operating Transfers In 80 197 277 64
Operating Transfers Out (25) (200) (250) (475) (159)
TOTAL OPERATING TRANSFERS (25) 80 (3) (250) (198) (95)
NET INCOME(LOSS)BEFORE EXTRAORDINARY
' ITEMS 1,207 272 93 203 (226) 1,549 4,353
Extraordinary Loss on Early Extinguishment of Debt (357)
NET INCOME(LOSS) 1,207 272 93 203 (226) 1,549 3,996
' RETAINED EARNINGS-BEGINNING OF YEAR 10,207 2,048 (178) 851 656 13,584 9,588
RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers Out (1,440) (11440)
' RETAINED EARNINGS(ACCUMULATED DEFICIT)
END OF YEAR $9,974 $2,320 (E85) $1,054 $430 $13,693 $13,584
CITY OF HUNTINGTON BEACH ,
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS ,
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(IN THOUSANDS)
MeadmMark Golf Emerald Cove Emergency Fire
CASH FLOWS FROM OPERATING ACTIVITIES Water Utility Course Housing Medical Refuse Collection Total 1993 Total 1992
OPERATING INCOME(LOSS) (E817) $252 $239 $205 $10 ($111) $3,783
Adjustments Required to Reconcile Operating Income(Loss) '
to Net Cash Provided (Used)by Operating Activities
Depreciation 1,368 1 82 54 1,505 1,561
Loss on Sale of Capital Assets 188 37 225
Decrease(Increase)in Accounts Receivable (37) (1) (142) (50) (230) (559,
Decrease(Increase)in Interest Receivable 136
Decrease(Increase)in Unbilled Receivable 100 20 120 150
Decrease(increase)in Advance to Other Funds (296) (296) (2,745)
Decrease(Increase)in Inventory 121 121 (391
Increase(Decrease)in Accounts Payable (43) 1 2 (40) 125
Increase(Decrease)in Accrued Payroll 14 14 28 132
Increase(Decrease)in Amount Due to Other Funds 215 215 7
Increase(Decrease)in Deposits (70) (70) 31
Increase(Decrease)in Compensated Absences (10) (51) (61) 11
TOTAL ADJUSTMENTS 1,335 37 82 91 (28) 1,517 (1,087)
NET CASH PROVIDED(USED) BY OPERATING
ACTIVITIES 518 289 321 296 (18) 1,406 2,6961
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
Operating Transfers In From Other Funds 80 197 277
Operating Transfers Out to Other Funds (25) (200) (250) (475) (91
Residual Equity Transfers Out (1,440) (1,440)
TOTAL CASH FLOWS PROVIDED(USED)FROM
NON-CAPITAL FINANCING ACTIVITIES 1,440) (25) 80 3) (250) (1,638) (95
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Interest Paid (111) (407) (518) (711)
Acquisition and Construction of Capital Assets (871) (294) (1,165) (5800
Proceeds of Sale of Plant,Property and Equipment 49 49
Extraordinary Loss on Early Extinguishment of Debt (35
Issuance of Debt 5,718
Advances to Other Funds Repaid 0) (1) (700
Principal Paid on Long-Term Debt (39) (8) (47) (5,081
TOTAL CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES (822) (150) (416) (294) (1,682)
CASH FLOWS FROM INVESTING ACTIVITY
Interest on Investments 1,731 156 181 1 14 2,083 1,381@
NET INCREASE(DECREASE)IN CASH AND CASH
EQUIVALENTS (13) 270 166 (254) 169 2,291
CASH AND CASH EQUIVALENTS,BEGINNING OF
YEAR 14,021 1,858 2,408 383 18,670 16,37M
CASH AND CASH EQUIVALENTS END OF YEAR $14,008 $2,128 $2,574 $129 $18,839 $18,670
86 ,
' INTERNAL SERVICE FUNDS account for goods and services
provided by one City department to another on a cost-reimbursement
basis.
The Self-Insurance Fund accounts for the City s self-insurance activities
' (liability, health and workers compensation).
The Equipment Replacement Fund accounts for the purchase, operation
' and replacement of vehicles and equipment leased to City departments.
CITY OF HUNTINGTON BEACH '
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
June 30,1993
(With Comparative Totals for June 30,1992)
(IN THOUSANDS)
Equipment ,
ASSETS: Self-insurance Replacement Total1993 Total1992
Current Assets
Cash and Investments $5,962 $6,370 $12,332 $12,669
Due from Other Funds 4,815 $4,815 '
Other Receivables 8 8 4
Total Current Assets 10,785 6,370 17,155 12,673
Other Assets:
Cash With Fiscal Agent 79 79 602 ,
Advances to Other Funds
Investment In Joint Venture (4) (4) 196
Total Other Assets (4) 79 75 798
Plant,Property and Equipment ,
Machinery and Equipment 31,508 31,508 29,433
Less Accumulated Depreciation (18,373) (18,373) (16,561)
Total Plant,Property and Equipment 13,135 13,135 12,872
TOTAL ASSETS $10,781 $19,584 $30,365 $26,343 ,
LIABILITIES AND FUND EQUITY
LIABILITIES ,
Current Liabilities
Accounts Payable $124 $7 $131 241
Accrued Payroll 10 10 19
Leases Payable
Accrued Interest 101 101 154
Current Portion of Long-Term Debt 1,100 1,100 1,116
Total Current Liabilities 134 1,208 1,342 1,530
Long-Term Liabilities '
Certificates of Participation 3,525 3,525 4,550
Notes Payable 91
Leases Payable 900 900
Workers Compensation Claims 4,702 4,702 5,116
Hearth Claims 165 165 84
General Liability Claims 9,253 9,253 2,768
Compensated Absences 25 25
Less Current Portion (1,100) (1,100) (1,116) ,
Total Long-Terre Liabilities 14,145 3,325 17,470 11,493
TOTAL LIABILMES 14,279 4,533 18,812 13,023
FUND EQUITY
Contributed Capital 16,781 16,781 14,961
Retained Earnings (3,498) (1,730) (5,228) (1,641) ,
TOTAL FUND EQUITY (3,498) 15,051 11,553 13,320
TOTAL LIABILITIES AND FUND EQUITY $10,781 $19,584 $30,365 $26,343
87 ,
CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
' COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN ACCUMULATED DEFICITS
FOR THE YEAR ENDING JUNE 30,1993
(With Comparative Totals for June 30,1992)
(IN THOUSANDS)
' Equipment
OPERATING REVENUES Self-Insurance Replacement Total 1993 Total 1992
Fees for Service $6,831 $2,148 $8,979 $8,789
Other 205 300 505 444
TOTAL OPERATING REVENUES 7,036 2,448 9,484 9,233
OPERATING EXPENSES
Administration 2,504 478 2,982 3,229
' Employee Medical Claims 3,549 3,549 2,457
Liability Claims 3,026 3,026 2,344
Workers Compensation Claims 1,208 1,208 2,870
Depreciation 2,792 2,792 2,896
TOTAL OPERATING EXPENSES 10,287 3,270 13,557 13,796
OPERATING LOSS (3,251) (822) (4,073) (4,563)
NON-OPERATING REVENUES
Interest Income 641 468 1,109 1,082
Interest Expense (305) (305) (389)
Joint Venture Income(Lose) (606) (606) 255
TOTAL NON-OPERATING REVENUES 35 163 198 948
NET LOSS BEFORE OPERATING TRANSFERS (3,216) (659) (3,875) (3,615)
' Operating Transfers In 671 671 573
Operating Transfers Out (383) (383) (1,500)
NET LOSS (3,216) (371) (3,587) (4,542)
ACCUMULATED DEFICIT,BEGINNING OF YEAR (282) (1,359) (1,641) 2,901
ACCUMULATED DEFICIT, END OF YEAR ($3,498) ($1,730) ($5,228) ($1,641)
1
r
CITY OF HUNTINGTON BEACH
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS ,
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(IN THOUSANDS)
Setf- Equipment
Insurance Replacement Total1993 Total1992
CASH FLOWS FROM OPERATING
ACTIVITIES
OPERATING LOSS ($3,251) ($822) ($4,073) ($4,563) '
ADJUSTMENTS TO RECONCILE
OPERATING LOSS TO NET CASH
PROVIDED(USED)BY OPERATING '
ACTIVITIES:
Depreciation 2,792 2,792 2,896
Loss on Sale of Assets 283 283
Decrease(Increase)in Joint Venture 606 606 (255)
Decrease(Increase)in Amounts Due from
Other Funds (4,815) (4,815)
Decrease(Increase)in Interest Receivable (4) (4) 131
Increase(Decrease)in Accounts Payable (14) (96) (110) 158
Increase(Decrease)in Claims Payable 6,152 6,152 1,837
Increase(Decrease)in Compensated
Absences 25 25 '
Increase(Decrease)in Accrued Payroll (9) (9) (12)
Increase(Decrease)in Accrued Interest (53) (53)
TOTAL ADJUSTMENTS 1,941 2,926 4,867 4,755
TOTAL CASH FLOWS PROVIDED FROM '
OPERATING ACTIVITIES (1,310) 2,104 794 192
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITY
Operating Transfers In From Other Funds 671 671 573 ,
Operating Transfers Out to Other Funds (383) (383) (1,500)
TOTAL CASH FLOWS PROVIDED(USED)
FROM NON-CAPITAL FINANCING
ACTIVITIES 288 288 (927) '
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Interest Expense (273) (273) (389)
Acquisition and Construction of Capital Assets (650) (650) (1,038) '
Principal Paid on Long-Term Debt (1,116) (1,116) (1,047)
TOTAL CASH USED IN CAPITAL AND
RELATED FINANCING ACTIVTIES (2,039) (2,039) (2,474)
CASH FLOWS FROM INVESTING '
ACTIVITIES
Interest in Joint Venture (606) (606) 255
Interest on Investments 641 468 1,109 1,082
TOTAL CASH FLOWS PROVIDED FROM ,
INVESTING ACTIVITY 35 468 503 1,337
NET INCREASE(DECREASE)IN CASH AND
CASH EQUIVALENTS (1,275) 821 (454) (1,872)
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 7,237 5,628 12,865 14,737
CASH AND CASH EQUIVALENTS,END OF
YEAR $5,962 $6,449 $12,411 $12,865
NON-CASH ACTIVITIES:
Capital Lease Aquisitions $1,004 $1,004
Fixed Asset Contributions $1,821 $1,821
r
' TRUST AND AGENCY FUNDS account for assets held by the
City as an agent for individuls, private organizations or other
governments.
' Agency Funds:
The Employee Deferred Compensation Fund accounts for monies
' held for employees under the City's section 457 deferred
compensation plan.
The General Deposit Fund accounts for the deposit of general
monies held by the City for private individuals and businesses.
The Mello-Roos Fund accounts for the debt service requirements of
the Mello-Roos Assessment District bonds.
The Retiree Medical Insurance Fund accounts for the City's medical
retirement program.
' The Asset Seizure Fund accounts for the deposit of monies held b
P Y
' the City for narcotics cases pending court decisions.
The Central Net Fund accounts for the activity of the Central Net
' Operations Aurhority.
Trust Fund:
The Retirement Supplement Fund accounts for the supplemental
pp PP
' retirement plan provided to retirees.
1
CITY OF HUNTINGTON BEACH
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
June 30,1993 ,
WITH COMPARATIVE TOTALS FOR JUNE 30,1992
(IN THOUSANDS)
Pension Trust ,
ASSETS Agency Funds Fund Total 1993 Total 1992
Cash and Investments $4,159 $75 $4,234 $3,409
Cash With Fiscal Agent 23,404 23,404 19,431
Notes Receivable,Net of Allowance for Doubtful '
Accounts 1,472 1,472 1,990
Other Assets 49 49 70
TOTAL ASSETS $29,084 $75 $29,159 $24,900
LIABILITIES
Deposits $1,410 $1,410 956
Notes Payable 24 24 25 '
Funds Held for Others 3,241 3,241 2,711
Deferred Compensation 24,409 24,409 21,051
TOTAL LIABILITIES 29,084 29,084 24,743
FUND BALANCES
Reserved for Pension Payments 75 75 157
TOTAL LIABILITIES AND FUND BALANCES $29,084 $75 $29,159 $24,900 '
CITY OF HUNTINGTON BEACH
TOTAL AGENCY FUNDS '
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDING JUNE 30,1993
(EXPRESSED IN THOUSANDS)
July 1, '
ASSETS: 1992 Additions Deductions June 30,1993
Cash and Investments $3,252 $3,574 ($2,867) $4,159
Cash With Fiscal Agent 19,431 5,648 (1,675) 23,404 '
Notes Receivable,Net of Allowance for Doubtful
Accounts 1,990 (518) 1,472
Other Assets 70 20 (41) 49
TOTAL ASSETS $24,743 $9,242 ($4,901) $29,084 '
LIABILITIES
Deposit Payable 956 3,259 (2,805) 1,410
Notes Payable 25 (1) 24 '
Funds Held for Others 2,711 781 (251) 3,241
Deferred Compensation Payable 21,051 3,960 (602) 24,409
TOTAL LIABILITIES $24,743 $8,000 ($3,659) $29,084
90 ,
CITY OF HUNTINGTON BEACH
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDING JUNE 30,1993
(IN THOUSANDS)
EMPLOYEE DEFERRED COMPENSATION
ASSETS: July 1,1992 Additions Deductions June 30,1993
Cash and Investments $93 $360 ($366) $87
Cash With Fiscal Agent 18,964 5,023 (1,142) 22,845
Notes Receivable,Net of Allowance for Doubtful
Accounts 1,990 (518) 1,472
Other Assets 29 29
TOTAL ASSETS $21,076 $5,383 ($2,026) $24,433
LIABILITIES
Notes Payable 25 (1) 24
Deferred Compensation Payable 21,051 3,960 (602) 24,409
TOTAL LIABILITIES $21,076 $3,960 ($603) $24,433
' GENERAL DEPOSIT FUNDS
ASSETS: July 1,1992 Additions Deductions June 30,1993
' Cash and Investments 4 1 1 ) 1
LIABILITIES
Deposit Payable $374 $159 ($123) $410
MELLO-ROOS ASSESSMENT DISTRICT
ASSETS: July 1,1992 Additions Deductions June 30,1993
Cash and Investments $363 ($314) $49
' Cash With Fiscal Agent $467 625 (533) $559
Other Assets 41 5 (41) 5
TOTAL ASSETS $508 $993 (5888) $613
LIABILITIES
Deposit Payable $508 $993 ($888) $613
' 91
r
CITY OF HUNTINGTON BEACH
AGENCY FUNDS
STATEMENTS OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDING JUNE 30,1993
(IN THOUSANDS)
RETIREE MEDICAL INSURANCE
(CONTINUED) '
ASSETS: July 1,1992 Additions Deductions June 30,1993
Cash and Investments $2,711 $781 ($251) $3,241 ,
LIABILITIES
Funds Held for Others $2,711 $781 ($251) $3,241
r
ASSET SEIZURE
ASSETS: __July 1,1992 Additions Deductions June 30,1993 r
Cash and Investments $74 $92 ($85) $81
LIABILITIES '
Deposit Payable $74 $92 ($85) $81
CENTRAL NET r
ASSETS: July 1,1992 Additions Deductions June 30,1993 r
Cash and Investments $1,819 (E1,528) $291
Other Assets 15 15
TOTAL ASSETS $1,834 ($1,528) $306
LIABILITIES '
Deposit Payable $2,015 ($1,709) $306
r
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r
92 '
' CITY OF HUNTINGTON BEACH
RETIREMENT SUPPLEMENT TRUST FUND
' BALANCE SHEET
JUNE 30,1993 WITH COMPARATIVE TOTALS FOR JUNE 30,1992
(EXPRESSED IN THOUSANDS)
' ASSETS 1993 1992
Cash and Investments $75 $157
tLIABILITIES AND FUND BALANCES
Fund Balance Reserved for Pension Payments $75 $157
' STATEMENT OF REVENUE,EXPENSE AND CHANGE IN FUND BALANCE
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(EXPRESSED IN THOUSANDS)
' REVENUES 1993 1992
City Contributions $240 5240
Interest 16 17
' TOTAL REVENUES 256 257
EXPENSE
Pension Payments and Administration 338 275
' EXCESS OF REVENUE OVER(UNDER)EXPENSE (82) (18)
FUND BALANCE,BEGINNING OF YEAR 157 175
FUND BALANCE,END OF YEAR $75 $157
' STATEMENT OF CASH FLOWS
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
' (EXPRESSED IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES 1993 1982
' Operating Loss ($82) ($18)
CASH AND CASH EQUIVALENTS,BEGINNING OF
YEAR 157 175
CASH AND CASH EQUIVALENTS,END OF YEAR $75 $157
1
1
1
' 93
The GENERAL FIXED ASSETS ACCOUNT GROUP
' records plant, property and equipment not recorded in proprietary
funds.
1
1
1
1
1
CITY OF HUNTINGTON BEACH '
SCHEDULE OF GENERAL FIXED ASSETS
JUNE 30,1993
'GENERAL FIXED ASSETS (IN THOUSANDS)
Land $66,805
Buildings 50,606 '
Joint Ventures 648
Improvements Other Than Buildings 1,949
Construction in Process 6,489
TOTAL INVESTMENT IN GENERAL FIXED ASSETS $126.497 '
INVESTMENTS IN GENERAL FIXED ASSETS FROM: '
General Fund $9,749
Special Revenue Funds 21,863
Capital Projects Funds 72,979
Joint Ventures 648 '
Donations 21,258
TOTAL INVESTMENTS IN GENERAL FIXED ASSETS $126,497
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY '
FOR THE YEAR ENDING JUNE 30,1993
(IN THOUSANDS) '
July 1,1992 Additions Deletions June 30.1993
Fire $3,357 $92 $3,449
Police 552 68 620 '
Community Services 79,713 2,371 (372) 81,712
Public Works 2,726 247 2,973
Library Services 4,164 4,274 8,438
Non-Departmental 31,382 743 (2,820) 29,305 '
TOTAL $121,894 $7,795 (E3,192) $126,497
1
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
JUNE 30,1993
(IN THOUSANDS) '
Improvements Construction in
Land Buildings and Other Process Total '
Fire $3,449 $3,449
Police 552 68 620
Community Services 48,184 29,799 1,949 1,780 81,712
Public Works 2,726 247 2,973 '
Library 4,164 4,274 8,438
Non-Departmental 18,621 9,916 648 120 29,305
TOTAL $66,805 $50.606 $2,597 $6,489 $126,497
94 '
1
' The GENERAL LONG-TERM DEBT ACCOUNT
GROUP accounts for long-term debt not recorded in proprietary or
' trust funds.
1
1
1
1
CITY OF HUNTINGTON BEACH '
SCHEDULE OF CHANGES IN LONG-TERM DEBT
FOR THE YEAR ENDING JUNE 30,1993
(IN THOUSANDS) '
Outstanding Outstanding June
July 1,1992 Additions Reductions 30,1993
1970 Park Bonds $1,255 ($395) $860 t
Public Facilities Corporation Leasehold Mortgage
Bonds 2,000 (290) 1,710
Parking Authority Revenue Bonds 275 (160) 115
Civic Improvement Corporation Certificates of '
Participation-1993 38,245 38,245
Reservoir Hill Assessment Bonds 1,590 (195) 1,395
Civic Improvement Corporation Certificates of
Participation 1986 and 1989 33,585 (33,585) ,
1992 Public Financing Authority Revenue Bonds 33,495 33,495
Arbitrage Rebate 234 (146) Be
Compensated Absences 4,976 1,296 (955) 5,317
Notes Payable 1,121 (128) 993 '
Advances from Other Funds 109,126 6,703 (1,256) 114,573
TOTAL $187,657 $46,244 ($37,110) $196,791
1
1
95 ,
STATISTICAL SECTION
CITY OF HUNTINGTON BEACH ,
GOVERNMENTAL FUND EXPENDITURES BY FUNCTION AND ACTIVITY
LAST TEN FISCAL YEARS
(EXPRESSED IN THOUSANDS)
Economic and
City Administrative Community Community
City Council Administrator City Treasurer City Attorney City Clerk Services Development Fire Police Services '
leea ea $111 $480 $141 $730 $165 $2,362 42,319 $8,569 $15,601 $5,070
1984.85 129 731 268 806 195 2.559 2.726 9,494 17,123 5,287
1985-88 135 848 288 897 203 2,949 2.715 10,252 18,745 5,668
1988-87 129 959 293 913 252 3,088 3,248 11.187 20.519 6,090 '
1987.88 130 1,106 290 973 245 3,287 4,187 11,840 22.370 6,954
1988-89 156 1,304 322 1,042 293 3,409 4,393 12,722 23,565 7.595
1989.90 215 853 438 1,308 330 3,835 5,404 14.148 26,369 8,307
1990.91 197 1,564 700 1,340 457 4,187 5.306 14.169 28,148 9,127 '
1991.92 297 1.569 727 1,563 402 4,042 6,628 13.173 30,417 9,420
1992-93 213 1,480 709 1.807 449 4.108 6,097 16,505 32,355 7,228
GOVERNMENTAL FUND REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(EXPRESSED IN THOUSANDS)
Licenses and Fines and Use of Money From Other Charges for
Fiscal Year Property Tax Other Taxes Permits Forfeitures and Property Agencies Current Service Other Total
1993-84 $16,935 $22.879 $5,100 S1,923 $6,177 $9,937 $2,009 $1,053 $66,013 '
1984-85 17,638 25,923 5,963 2.094 5,896 12.888 2,161 364 72,927
1985-M 19.428 27,798 4,427 1.974 5,718 14,143 2,350 736 76,574
1988.87 23,087 28,885 4,919 2,096 7,634 14.422 2,799 456 84,298
1987.M 24,275 30,207 4.348 2,338 8,365 15,492 3,208 1,410 89,643 '
1988-89 26,970 30,736 5773 2,458 13,884 21,721 5,886 2,731 110.159
1989-90 30,460 32.679 3,944 2,256 14,140 15,211 7,267 1.019 106,976
199"1 33,697 32,092 3.629 1.904 11,854 27,243 8,341 2,012 120,772
1991-92 35,376 35,069 4,236 1,324 19,451 21,850 4,699 3,192 125.197 '
1992-93 33.163 36,332 4,846 1,354 11,382 19.334 6,453 2,493 115,357
PROPERTY TAX LEVIES AND COLLECTIONS '
LAST TEN FISCAL YEARS
SECURED TAXES UNSECURED TAXES
TOTAL DELINQUENCY DELINQUENCY TOTAL DELINQUENCY DELINQUENCY '
TOTALLEVY COLLECTIONS AMOUNT PERCENT TOTAL LEVY COLLECTIONS AMOUNT PERCENT
1983-84 $11.403 $11.665 $430 3.77% $982 $942 $26 2.65%
1984-85 12,418 11,634 425 3.42% 1,032 955 33 3.20% '
1985.88 13,608 12,781 452 3.32% 1,130 1,060 40 3.54%
1986-87 15.089 14,448 572 3.79% 1.187 1,100 45 3.79%
1967.88 16.055 15,419 500 3.11% 1,250 1,180 46 3.68%
1988-N 16,963 16,346 493 2.91% 1.287 1,234 37 2.87% '
1989-90 17,283 16,654 500 2.89% 1,524 1,421 71 4.66%
1990-91 18,764 17,827 747 3.98% 1,509 1,377 62 4.11%
1991-92 20,171 18,948 899 4.46% 1,646 1,525 63 3.83%
1992.93 19,060 17,847 853 4.48% 1.542 1,205 130 8.43% '
RESERVIOR HILL MELLO-LOOS
1989-90 $214 $211 $3 1.40%
199D-91 168 163 4 2.38%
1991-92 170 167 3 1.76% 264 236 27 10.23% '
1992-93 191 187 3 1.57% 264 245 19 7.20%
Source:County of Orange Auditor Controller's Office '
Note-Delinquency amount does not always equal levy amount minus collections
amount since there are always amounts collected from prior years
Page 98 ,
Library Non-
' _ Services Public Works Departmental Capital Outlay Debt Sevin Total
$12.528 $3,741 $8,621 $1,830 $62.268
13,652 4,867 7,874 1,896 67,607
15,249 6,796 11,791 1,847 78,383
' 14,863 7,726 12,168 2,189 83,614
16,205 7,153 10,206 5,243 90,189
16,893 7,088 42,462 15,177 136.421
18,428 7,955 20,622 10,626 118,838
' 20,275 7,052 24,076 11,895 128,493
15,889 11,255 39,069 48,643 183,094
2,775 16,633 21,488 17,328 9,397 138,572
1
' Page 97
CITY OF HUNTINGTON BEACH ,
ASSESSED AND ACTUAL VALUATION OF ALL TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(EXPRESSED IN THOUSANDS)
Tool Estimated
Common Total Assessed Full Market Percent
Property Public Utilities Secured Unsecured Valuation Valuation Increase '
1983-84 $5,559.792 $362,186 $5,921,978 $370,949 $6.292.927 $6.292,927
1964.85 5,940.642 426,593 6.367,235 488,571 8,833,806 6,833,806 8.8D%
1985.86 8,519,923 450,742 6.970.665 441,125 7,411,790 7.411.790 8.48%
198"7 7,019,854 475.467 7.495,321 5064,940 8,000,261 8.000,261 7.94%
1987-88 7,457,814 487,793 7,915,407 436,502 8,381,909 8,381,909 4.77% ,
1988-W 8,118,790 3,317 8,120.107 460,095 8,580,202 8,580.202 2.37%
1989-90 9.030,107 3,298 9.033,405 717,652 9,751.057 9.751.057 13.65%
1990-91 9,979.107 3,324 9,982,431 536.847 10,519,278 10,519,278 7.88%
1991-92 10,640,971 10.011 10,BSQ982 678,810 11,327.792 11,327,792 7.69% ,
1992-93 10,997.087 2,311 10,899,378 758,178 11.657,556 11.657,556 2.91%
PROPERTY TAX RATES-ALL DIRECT AND OVERLAPPING GOVERNMENTS
TAX RATE AREA 04-001(LARGEST AREA IN CITY) '
Orange School Metro Water
Year Basic L city County Districts District 0them Total
1983-84 1.00000 0.OW82 0.00039 0.12096 0.02370 0.00210 1.20397 ,
1984.85 1.00000 0.05830 0.00032 0.09982 0.01580 0.00177 1 A 7381
1985-W 1.00000 0.05565 0.00030 0.09329 0.01640 0.00181 1.18725
1 W"7 1.00000 0.05529 0.00027 0.10877 0.01480 0.00142 1.17855
1987.88 1.00000 0.05490 0.00027 0.09514 0.01120 0.00838 1.16789 '
1988-M 1.00000 0.05470 0.00022 0.09470 0.01100 0.00321 1.16383
1989-90 1.00000 0.05419 0.00022 0.01004 0.01210 0.00029 1.07684
1990-91 1.00000 0.05408 0.00110 0.00841 0.00970 0.00016 1.07342
1991-92 1.00000 0.05339 0.00098 0.00482 0.00890 0.00012 1.06821
1992-93 1.00000 0.05325 0.00087 0.00201 0.00890 0.00013 1.08516 '
Note-Rates are per$100 of assessed valuation
Source-County of Orange
GENERAL OBLIGATION BONDED DEBT RATIOS
LAST TEN FISCAL YEARS '
Percent of Debt Service ,
General Debt to Total Debt General Fund tD TOtOl
Bonded Debt Assessed Assessed Bonded Debt Principal Interest Service Expenditures General Fund
000s Market 000s value Population Per Capita OODs OODs) (OODs) Expenditures
190-84 $3,695 $8.292.927 0.o8 179,990 $20.53 $235 $236 $471 $53,177 0.59% ,
1984-85 $3,425 $6,833.808 0.05 181,000 $18.92 $270 $222 S492 S59,894 0.82%
1985-M $3,165 $7,411,790 0.04 184,838 S17.12 $280 S206 S488 $64,492 0.72%
1986.87 $2,885 $8,000.261 0.04 186,757 $15.45 $280 S91 $371 $67,126 0.55%
1987-88 $2.590 S8.381,909 o.03 187,740 $13.80 S295 $175 S470 $71.232 0.66% '
1988-89 $2,280 S8,580,202 0.03 188,701 SlIZ08 $310 $155 $465 $75,593 0.62%
1989-90 $1,975 $9,751,057 0.02 171,155 $11.54 $305 $139 S444 $83,616 0.53%
1990-91 S1,625 $10,519.278 0.02 172,353 S9.43 $350 S118 $468 S88,079 0.53%
1991-92 $1,255 $11.327.792 o.01 184,962 $6.79 $370 $98 S468 $91,457 0.51% '
1992.93 $860 S11,857,556 0.01 184,771 $4.65 S395 $75 $470 S91,850 0.51%
Source-AdminstrativeServices Department,City of Huntington Beach
Page 98 ,
' CITY OF HUNTINGTON BEACH
CONSTRUCTION ACTIVITY AND BANK AND SAVINGS AND LOAN DEPOSITS
LAST TEN FISCALYEARS
' Estimated
Value of Banks and
Number of New Savings and
Building Percent Construction Percent Loan Deposits
Permits Change (OOOs) Change (OOOs) Percent Change
' 19113.8e 2,776 $110,747 1,801.778
1%4.85 6.496 134.01 142.336 28.52 1,843,295 2.30
1985.88 3,173 (51.15) 133,579 (6.15) 2,052.766 11.36
198"1 4,098 29.15 92.230 (30.95) 2,138.624 4.18
1987.88 4,666 13.86 177,297 92.23 2,395.503 12.01
1988-89 5,039 7.99 272,013 53.42 2,653,166 10.76
1989-90 4,318 (14.31) 102.907 (62.17) 2,598,415 (2.06)
1990.91 4,650 7.69 76,175 (25.98) 2,746,519 5.70
1991,91 5,041 8.41 111,250 6.66 2,405,142 (12.41)
' 1992.93 10,400 106.31 100,400 23.57
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30,1993
(EXPRESSED IN THOUSANDS)
' ASSESSED VALUATION $11,657,557
DEBT LIMIT:12%OF ASSESSED VALUATION 1.398.907
' DEBT APPLICABLE TO LIMITATION:
1970 PARK BONDS sw
LESS ASSETS IN 1970 PARK BOND DEBT SERVICE FUND (530)
TOTAL DEBT APPLICABLE TO LIMITATION 330
' LEGAL DEBT MARGIN $1,398,577
STATEMENT OF DIRECT AND OVERLAPPING BONDED DEBT
' JUNE 30,1993
%Applicable Debt Q WWI
Orange County(O.C.) 7.48% $73.304
O.C. Building Authorities 7.48% 21.182,275
O.C.Flood Control District 7.48% 245.685
Metropolitan Water District(MWD) 1.51% 10.022,698
MWD of O.C.Water Facilities Corporation 11.51% 10.429.955
O.C.Sanitation Dist#3 COPS 11.51% 15,573,735
' O.C.Sanitation Dist 911 COPS 99.90% 26.855,557
O.C.Water District COPs 11.68% 14.918,308
Coast Community College District Authority 30.30% 5.221,217
Htg.Bch.Union H.S.Dist.COPS 71.21% 954.268
Fountain Valley School District 26.29% 801.936
Huntington Beach City School District 96.35% 144.522
City of Huntington Beach 100.00% 880,000
City of Huntington Beach Building Authorities 100.00% 52,310.197
City of Htg Bch Community Facilities District 100.00% 2,375,000
City of Htg.Bch.1915 Act Bonds 100.00% 1,565,000
TOTAL GROSS DIRECT AND OVERLAPPING 163,533.657
BONDED DEBT
LESS MWDOC WATER FACILITIES CORP (10,429,955)
' 100%SELF SUPPORTING
TOTAL NET DIRECT AND OVERLAPPING $153,103,702
BONDED DEBT
' 1.)Excludes tax and revenue anticipation notes,mortgage revenue bonds
and non-bonded capital lease obligations
Ratios to Assessed Valuation
' Direct Debt($53,170,197) 0.45%
Total Gross Debt 1.38%
Total Net Debt 1.29%
State School Building Aid Repayable at 6/30/93117,519,521'
1992/93 Assessed Valuation$11,885,461,394 excluding$481,714,272 redevelopment incremental valuation
Page 99
CITY OF HUNTINGTON(BEACH '
DEMOGRAPHIC STATISTICS
Orange County i
Year Population Percent Increase Square Miles Population
1910 815 3.57 34,436
1920 1,687 107.0% 3.57 61,375 ,
1930 3,690 118.7% 3.57 62,451
1940 3,738 1.3% 3.57 130,760
1950 5.158 38.0% 4.72 216.224
1960 11,492 122.8% 23.47 703,995 '
1970 116,400 912.9% 26.73 1,420,386
1980 172.200 47.9% 27.20 1.931,570
1990 188.701 9.6% 27.20 2,362,211
1991 181,155 -4.0% 27.20 2,453,277 ,
1992 182,353 0.7% 27.20 2,512,198
1993 184,771 1.3% 27.20 2.557,346
TOP TEN SECURED PROPERTY OWNERS '
JUNE 30,1993
Percent of '
P.ssessed Valuation Total
McDonnel Douglas Corporation $285,885,580 2.45%
Shell Western E 6 P Inc. In4,860,559 0.90%
Macench California Associates 57,231,401 0.49%
Richard Batagglia Trust 44,680,494 0.38% ,
Huntington Beach Company 43,878,564 0.38%
Robert Mayer Company 43.190,570 0.37%
Valacal Corporation 41,199.838 0.35%
GSL Real Estate 39,182,723 0.34%
JMP Institutional Apartment 39.105,514 0.34%
Bentall Properties Inc. 29,141.420 0.25%
Total $728,356,663 6.25%
MISCELLANEOUS STATISTICS '
JUNE 30,1993
Year of Incorporation 1909
Form of Government Charter City-City Council-City Administrator
Area 27.2 Square Miles
Population 184.771
Miles of Streets 370
Number of Street Lights 14,350
Fire Protection: ,
Number of Stations 7
Number of Firefighters 148
Police Protection:
Number of Stations 4
Number of Swam Police Officers 239
Municipal Water Department '
Number of Customers 48,000
Average Daily Consumption 35.0 Million Gallons
Miles of Water Mains 490
Public Works:
Sanitary Sewers 340 miles
Storm Sewers 31 miles
Recreation and Culture: '
Number of Parks 57
Park Acreage Developed 555
Miles of Beach 3.4
Annual Beach Visitors 7,000.000 '
Number of Libraries 4
Volumes in Libraries 345,675
Full-Time Employees 1,135 '
Pace 100
' COMPREHENSIVE ANNUAL FINANCIAL REPORT
' CITY OF HUNTINGTON BEACH, CALIFORNIA
FISCAL YEAR ENDING JUNE 30, 1993
PREPARED BY ADMINISTRATIVE SERVICES
DEPARARTMENT
t
1 CITY OF HUNTINGTON BEACH
COMPREHENSIVE ANNUAL FINANCIAL REPORT
t FISCAL YEAR ENDING JUNE 30, 1993
TABLE OF CONTENTS
1 INTRODUCTORY SECTION
Table of Contents
1 Letter of Transmittal iii-xi
Principal City Officials xii
Organizational Chart xiii
Financial Reporting Certificate xiv
FINANCIAL SECTION
Independent Auditors' Report 1
General Purpose Financial Statements
Combined Balance Sheet-All Fund Types and Account Groups 2-3
Combined Statement of Revenues, Expenditures and Changes in Fund Balances, 4
Budget and Actual -All Govemmental Fund Types
Combined Statement of Revenues, Expenditures and Changes in Fund Balances , 5-6
Budget and Actual- General, Special Revenue and Debt Service Funds
Combined Statement of Revenues, Expenses and Changes in Retained Earnings-All 7
Proprietary Fund Types and Similar Trust Funds
Combined Statement of Cash Flows-All Proprietary Fund Types and Similar Trust 8
Funds
Notes to General Purpose Financial Statements 9-59
' Combining Financial Statements and Schedules of Individual Funds and
Account Groups
General Fund:
Comparative Balance Sheet 60
Statement of Revenues, Expenditures and Changes in Fund Balances- Budget
and Actual 61
Special Revenue Funds:
Combining Balance Sheet 62-63
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances 64-65
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances- Budget and Actual 66-71
Debt Service Funds:
Combining Balance Sheet 72-73
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances 74-75
I Combining Statement of Revenues, Expenditures and Changes in Fund
Balances- Budget and Actual 76-79
Capital Proiects Funds:
Combining Balance Sheet 80-81
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances 82-83
Enterprise Funds: '
Combining Balance Sheet 84
Combining Statement of Revenue, Expenses and Changes in Retained 85
Earnings
Combining Statement of Cash Flows 86
Internal Service Funds: '
Combining Balance Sheet 87
Combining Statement of Revenue, Expenses and Changes in Retained 88
Earnings '
Combining Statement of Cash Flows 89
Trust and Agency Funds:
Combining Balance Sheet 90
Agency Funds: '
Combining Statement of Changes in Assets and Liabilities 90-92
Trust Funds:
Comparative Balance Sheet 93
Statement of Revenues, Expenditures and Changes in Retained Earnings 93
Statement of Cash Flows 93
General Fixed Assets Account Group:
Schedule of General Fixed Assets 94
Schedule of Changes in General Fixed Assets 94
Schedule of General Fixed Assets by Function and Activity 94
General Iona-term Debt Account Group:
Schedule of Changes in Long-Term Debt 95
STATISTICAL SECTION
Governmental Fund Revenues by Source- Last Ten Fiscal Years 96-97
Governmental Fund Expenditures by Function- Last Ten Fiscal Years 96-97
Property Tax and Special Assessment Levies and Collections- Last Ten Fiscal 96-97
Years
Assessed and Actual Value of All Taxable Property- Last Ten Fiscal Years 98
Property Tax Rates-All Direct and Overlapping Bonded Debt 98
Computation of Direct and Overlapping Bonded Debt 98
Construction Activity and Bank and Savings and Loan Activity- Last Ten Fiscal
Years 99
Computation of Legal Debt Margin 99
Statement of Direct and Overlapping Bonded Debt 99
Demographic Statistics 100
Top Ten Secured Property Tax Payers 100
Miscellaneous Statistics 100
ii ,
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
t ADMINISTRATIVE SERVICES
' December 1, 1993
1 The Honorable Mayor and City Council Members
City of Huntington Beach, California
' Mayor and Council Members
We are proud to submit the Comprehensive Annual Financial Report for the City of Huntington Beach for
the fiscal year ending June 30, 1993. We believe the data is an accurate summary of Huntington Beach's
financial position. The Administrative Services Department is responsible for the accuracy of the
information presented. We include disclosures to improve your understanding of the financial condition
of the city.
The financial statements comply with the standards of the Government Accounting Standards Board and
include the report of our independent auditors,KPMG Peat Marwick.
This report is organized into three sections:
INTRODUCTION
The introductory section includes this transmittal letter, the City's organizational chart and a list of
the principal officials of the City.
' FINANCIAL
The financial section includes the general purpose financial statements, the individual fund and
account group financial information and the auditors'report on the financial statements.
1 STATISTICAL
The statistical section includes selected financial and demographic information generally presented
' on a multi-year basis.
Huntington Beach is a full service City including public safety, parks and recreation, beach services,
library services, planning, zoning, economic development, public works and related administration. The
' City also provides water services to residents.
ECONOMIC CONDITION AND OUTLOOK
' Huntington Beach is located in Orange County whose economy, like the statewide economy, is mired in a
sluggish period of economic growth. Orange County's economy, like the rest of California, has been very
' slow to recover. There are signs of a national economic recovery but most forecasters see a continuation
of very little growth for California and for our local economy in the neat year.
While the recession has slowed City revenue growth,the State of California's legislative actions to balance
its own budget has negatively impacted the City's revenue base to a greater degree than the recession. The
State of California took over$3 million of City revenue (including $2.25 million from the General Fund)
to balance the State's 1992/93 budget. This problem continued in 1993/94 with the State permanently
taking an additional $3.3 million (including $3.0 million from the General Fund). We expect a
continuation of this problem since the State insists on balancing its budget by taking City and County
revenue.
Over the years Huntington Beach has developed diverse and stable revenue sources including property
taxes, sales taxes,utility taxes and oil-related revenues. In recent years, the City began implementation of
the Management Services Institute (MSI) cost recovery system. In 1992/93 these MSI revenues added
over$700,000 to the General Fund. This has and will help in coping with the recession.
MAJOR INITIATIVES '
For the Year
Staff and the City Council worked together during fiscal year 1992193 to develop budget alternatives to
absorb up to a$5 million revenue loss to the State in 1993/94. This was in addition to a shortfall of$5.1
million that was projected for 1993/94 even if the State took none of the City's revenue. The various
alternatives developed gave the Council flexibility to adjust the adopted budget based on economic
conditions and actions in Sacramento on the State Budget.
Construction neared completion during the year on the $8.5 million central library expansion that will
make Huntington Beach's library facilities among the finest in the nation.
Construction began on the Huntington Beach Art Center. The Art Center, estimated to be completed by
early 1994, will cost approximately $1,050,000 and will be funded by a combination of City funds and
private donations. When completed,the Art Center will provide Huntington Beach residents with a wide
range of art programs.
The City defeased two Civic Improvement Corporation bond issues to take advantage of lower interest I
rates resulting in a net economic benefit of over$1.5 million, expressed in present value of the economic
benefits that will occur in future years.
For the Future
Despite the harsh and negative impact of the recession, Huntington Beach's long-term future remains one
of economic promise and vitality. The City's coastal location provides unique challenges in developing a
mix of tourism, industry, residential and commercial development. This requires the efforts not only of
local government but also of businesses,developers and citizens'groups.
The City Council will be considering a change in the City's fiscal year from the traditional governmental
fiscal year(July 1st to June 30th) to the Federal fiscal year(October 1st to September 30th). This would
allow the City to properly plan for budgetary decisions made by the State affecting Huntington Beach. It
allows the City's fiscal year to more closely parallel the local economic cycle. If approved, there will be a
one-time fiscal year beginning July 1, 1993 and ending September 30, 1994. Beginning October 1, 1994,
normal twelve month fiscal years would begin.
Over the past 15 years, the Federal Government has passed on to state and local governments expenditure ,
mandates and the responsibility for providing many services previously funded by the Federal
Government. Both the State and Federal governments have sharply cut back funding to local
governments at the same time.
iv '
The greatest threat to City finances is not the general economic conditions but the continuing loss of
revenue to the State. Following is a chart of the revenue taken from the City by the State since 1990:
..
�'1TY REVEWESTAKEN SY THE'STATE OF ALiFORNIA:DtJitII+1G`TftE>IEtECES5 t1N.......> ;< <,
1990/91 1991/92 1992/93 1993/94 1994/95 TOTAL
' General Fund $310,000 $960,000 $3,210,000 $4,848,000 $6,248,000 $15,576,000
Redevelo ment 0 0 804,000 275,000 275,000 1,354,000
..
<To#al S310 t)t10 S960 tl()n l 014400... $5123 000. $6 SZ3 00t1 1G 3a :
FINANCIAL INFORMATION
' The City prepares financial statements on the modified accrual basis for all governmental fund types
except for the financial statements of the proprietary fund types that are prepared on the accrual basis.
The City's system of internal control protects City assets while ensuring that the cost of controls do not
exceed the expected benefits.
Budeetine Controls
The City Council adopts the annual budget and may amend or revise it at any meeting of the City Council
' that has been properly noticed for such action. Budgetary control is at the departmental level. A
department head,with the Finance Director's approval, can transfer funds within like object categories of
the same department. The City Administrator can transfer funds from one object category to another
without increasing the total budget of a fund. The City Administrator must approve any changes to
capital outlay requests. The City utilizes an encumbrance system as a management control technique.
Encumbrances are orders, or contracts, for goods or services not yet completed or received. The City
reports these as reservations of fund balance in governmental fund types.
Financial Summary
Below is an analysis of general fund revenues with an explanation of significant fluctuations (in
1 thousands):
lacrease(Decrease)from
1991/92
Revenue Source 1992193 Percent of Amount . Percent
Amount Total
roperty Taxes $27,899 31.0 ($1,511) (5.1
Sales Taxes 16,000 17.8 (18) (0.1
Other Taxes 17,434 19.4 (564) (3.1
Licenses and Permits 3,642 4.1 191 5.5
ines and Forfeitures 1,354 1.5 30 2.3
From Use of Money and Property 4,657 5.2 (4,162) (47.2
From Other Agencies 11,737 13.1 (1,636) (12.2
Charges for Current Service 6,313 7.0 1,711 37.
ther 859 1.01 181 26.
[Total $89,895 100% ($5,778) (6.0
Property taxes decreased because the State of California took City property tax revenue to balance its own
budget. Sales tax revenue was flat and other taxes decreased slightly due to the sluggish local economy.
Revenue from the use of money and property decreased due to a transfer of land from the Redevelopment
1 Agency that occurred in 1991/92. There was no comparable transaction in 1992/93. Revenue from other
agencies decreased largely because the "one-time" surplus revenues from CALPERS were received
predominately in 1991/92. Charges for current service increased because of new MSI revenues.
i
1
Below is an analysis of general fund expenditures with an explanation of significant fluctuations:
Dollar Amounts in Increase 0)*cr"w)from 1"IM
thousands
1992/93 Percent of Amount Percent 1991/92
Amount Total arrtt
City Council $213 0.2 (84) (28.3) $29
City Administrator 913 1.0 (263) (22.4) 1,17
City Treasurer 709 0.8 (18) (2.5) 72
City Attorney 1,807 2.0 244 15.6 1,563
City Clerk 449 0.5 47 11.7 40 '
Administrative Services 4,108 4.5 118 3.0 3,99
Community Development 3,499 3.8 (597) (14.6) 4,09
ire 16,505 18.0 3,332 25.3 13,173
Police 31,019 33.8 1,369 4.6 29,65
Community Services 6,936 7.6 445 6.9 6,491
Library Services 2,703 2.9 28 1.0 2,675 ,
Public Works 14,893 16.2 (232) (1.5) 15,125
Non-Departmental 7,709 8.4 50 0.7 7,65
Capital Outlay 0.0 (4,273) (100.0) 4,273
Debt Service 187 0.2 (63) (25.2) 25
$91,650 100 $103 0.1 $91,5431 '
City Council expenditures decreased largely to a reduction in the Intergovernmental Relations program.
City Administration expenditures decreased due to the elimination of the Productivity and Research
program. City Treasurer expenditures decreased due to the elimination of a position upon an employee
retirement. City Attorney expenditures increased due to increased contractual services with outside legal
firms. City Clerk expenditures increased due to expenditures associated with the November, 1992
election. Community Development expenditures decreased due to 1991/92 expenditures regarding the
General Plan Update and the Bolsa Chica development that were not made in 1992/93. Fire Department
expenditures increased due to retroactive salary increase payments to the Fire Association employees in
July, 1992. Capital outlay expenditures decreased due to a one-time transfer of land from the
Redevelopment Agency to the City in 1991/92.
The various fund equities of the city are analyzed below(dollar amounts in thousands):
GENERAL FUND Total Equity Total Equity Percent Increase
1992/93 1991/92 enrease
Reserved 20,823 $22,181 (6
Designated 5,064 (100
nreserved/Undesignated 8,152 3,409 13
$28,975 $30,654 5
vi
' GOVERNMENTAL FUNDS Total Equity Total Equity Percent Increase
:1992/93 1991/92 encease
' Reserved $105,066 $121,276 (13)11
Designated 8,090 18,321 (56
nreserved/Undesignated 14,061 9,914 42
' Total $127,217 $149,511 (15
1PROPRIETARY FUNDS
Contributed Capital $57,636 $55,814 3
etained Earnings 8,465 11,944 (29
' otal $66,101 $67,758 (2.45 11
The increase in Unreserved/Undesignated General Fund equity shows how City efforts to maintain the
City's financial reserves has paid off.
Pronrietary Operations
' The City operates five enterprise and two internal service funds. The Enterprise funds are the Water
Utility Fund,the Refuse Collection Fund,the Meadowlark Golf Course Fund,the Emergency Fire Medical
Fund and the Emerald Cove Housing Fund. These funds are supported through user charges to the public.
' The internal service funds are the Self-Insurance Fund and the Equipment Replacement Fund and are
supported by charges to user departments within the City.
Shown below is an analysis of the City's five enterprise funds. Financial information is compared to the
1 prior year(dollar amounts in thousands):
ENTERPRISE FUNDS
(Emerald Cove,Firemed,and Refuse) Emerald Emerald
Cove . Cove FireMed FireMed Refuse Refuse
1992/93 1"1/92 1"2/93 1"1/92 1992/93 1"1/92.
Operating Revenues $597 $598 2,141 $2,410 $6,138 $6,226
Operating Income(Loss) 239 296 205 (74) 10 627
Net Income(Loss) 93 (463) 203 (191) (226) 656
Income Available for Debt Service 500 525 N/A N/A N/A N/A
Debt Service Bonds and Notes 437 444 N/A N/A N/A N/A
Debt Service Coverage 1.1 1.2 N/A N/A N/A N/A
1 ENTERPRISE FUNDS
(Water and Golf Course)
Water Water Meadowlark Meadowlark
Golf Course "Golf Course
1992/93 1991/92 1992/93 1991/92
Operating Revenues $15,749 $15,289 $290 $374
' Operating Income(Loss) (817) 2,584 252 360
Net Income(Loss) 1,207 3,629 272 365
Income Available for Debt Service N/A N/A 428 480
Debt Service Bonds and Notes N/A N/A 150 150
Debt Service Coverage N/A N/A 2.9 3.3
i
' vii
1
1 Certificate of
1
Achievement
for Excellence
in Financial
1 Reporting
' Presented to
City of Huntington Beach,
California
1
For its Comprehensive Annual
1 Financial Report
for the Fiscal Year Ended
June 30, 1992
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
1
� OfFj��9
OF
ONfTFO STATES y
uri AND CA N
POM President
=6� fARPOTUl1UN
'off SEAL
S
CMIC�60Y��.Z2�;t
Executive Director
i
1
1 xiv
' FINANCIAL SECTION
XMW Peat Marwick
Certified Public Accountants
' Orange County Office
Center Tower
650 Town Center Drive
' Costa Mesa, CA 92626
Independent Auditors' Report
The Honorable Members of the City Council
City of Huntington Beach, California:
We have audited the general purpose financial statements of the City of Huntington Beach,
California, as of and for the year ended June 30, 1993, as listed in the accompanying table of
contents. These general purpose financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion of these general purpose financial
statements based on our audit.
' We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
' general purpose financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Huntington Beach, California, as of June
30, 1993, and the results of its operations and cash flows of its proprietary fund types for the year
then ended in conformity with generally accepted accounting principles.
Our audit 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 and schedules listed in the accompanying table of contents are presented for
the purpose of additional analysis and are not a required part of the general purpose financial
' statements of the City of Huntington Beach, California. Such information has been subjected to
the auditing procedures applied in the audit 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 whole.
November 19, 1993
S
Member Firm of
.on Klynveld Peat Marwick Goerdeler
CITY OF HUNTINGTON BEACH ,
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30,1993 WITH COMPARATIVE TOTALS FOR JUNE 30,1992
IN THOUSANDS '
GOVERNMENTAL FUNDS PROPRIETARY FUNDS
Special ,
ASSETS AND OTHER DEBITS Generel Revenue Debt Service Capital Projects Enterprise Internal Service
Cash and Investments(Notes to and 3) $6,123 $13,745 $7,179 $23,014 $18,361 $12,332
Cash With Fiscal Agent(Note 3) 8,8E2 361 478 79
Taxes Receivable(Note 1) 4,028 197 210 41 '
Other Receivables 1,050 1,274 233 981 2,681 8
Unbilled Receivables(Note lb) 1,629
Inventory(Note 1g) 388 609
Due from Other Funds(Note 10) 709 4,815
Deposits and Other Assets 256 2,878 9 '
Advances to Other Funds(Note 10) 73,694 4,732 30,758 909 4,723
Investment in Joint Venture(Note 18) (4)
Land Held for Resale(Note 1Q 15,468
Property,Plant and Equipment (Net)(Note 1f and 15) 37,174 13,135 '
Amount Available in Debt Service Funds(Note 16)
Amount to be Provided for Payment of Long-Term Debt
TOTAL ASSETS AND OTHER DEBITS $86,248 $221826 $47,251 $40,774 $65,655 $30,365
LIABILITIES,FUND EQUITY AND OTHER CREDITS '
LIABILITIES
Accounts Payable $802 $103 $46 $196 $793 $131
Other Accrued Liabilities 2,298 97 174 $21 300 111
Deposits 204 14 $20 1,977
Leases Payable(Note 15) 900
Due to Other Funds(Note 10) 422 4,815 287
Advances from Other Funds(Notes 10 and 12) 243 ,
Deferred Compensation(Note 4)
Claims Payable(note 9) 14,120
Funds Held for Others
Deferred Revenue(note 5) 53,969 6,684 92
Current Portion of Long-Term Debt 115 1,100
Long-Term Debt(notes 12 and 13) 7,156 2,425
Compensated Absences(notes 1j,12,13) 236 25
TOTAL LIABILITIES 57,273 7,320 220 5,144 11,107 18,812 '
FUND EQUITY AND OTHER CREDITS
Contributed Capital(note 11) 40,855 16,781
Investment in General Fixed Assets ,
Retained Earnings(Accumulated Deficits)(notes 16 and 19) 13,693 (5,228)
Fund Balances(Notes 16 and 19):
Reserved 20,823 5,014 47,031 32,123
Unreserved '
Designated 5,415 2,675
Undesignated _ _8152 5,077 832
TOTAL FUND EQUITY AND OTHER CREDITS 28,975 15,506 47,031 35,630 54,548 11,553
TOTAL FUND EQUITY,LIABILITIES AND OTHER CREDITS $86,248 $22,826 $47,251 $40,774 $65,655 $30,365 '
See independent suditors'report and notes to general purpose financial statements 2 ,
FIDUCIARY
FUND TYPES ACCOUNT GROUPS Memorandum Only
General Long-
Trust and General Term Debt
Aaency IFixed Assets Account Group Total 1993 Total 1992
$4,234 $84,988 $96,542
23,404 33,184 30,158
' 4,476 4,223
1,521 7,748 6,662
1,629 1,749
997 1,052
3,143 233
114,816 109,370
(4) 602
' 15,468 24,120
126,497 176,806 172,259
16,273 16,273 16,075
180,518 180,518 171,316
129,159 $126,497 $196,791 $645,566 $634,765
$2,071 $4,303
3,001 2,331
1,410 3,625 3,955
900
5,524 404
' 114,573 114,816 109,370
24,409 24,409 21,051
14,120 7,968
3,241 3,241 2,711
60,745 52,964
1,215 1,184
24 76,901 86,506 84,088
5,317 5,578 5,273
29,084 196,791 325,751 295,602
57,636 55,814
' 126,497 126,497 121,894
8,465 11,944
75 105,066 121,276
' 8,090 18,321
14,061 9,914
75 126,497 319,815 339,163
' $29,159 $126,497 $196,791 $645,566 $634,765
' 3
' CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(IN THOUSANDS)
' Totals 1993
Special Revenue DebtService Capital Projects (Memorandum
REVENUES: General Fund Funds Funds Funds Only) Total 1992
Property Taxes (note1) $27,8W $4,358 $906 $33,163 $35,376
Other Taxes 33,434 2,545 353 36,332 35,069
Licenses and Permits 3,642 1,187 17 4,846 4,236
Fines,Forfeitures and Penalties 1,354 1,354 1,324
From Use of Money and Property 4,657 1,543 2,480 2,702 11,382 19,451
From Other Agencies 11,737 7,597 19,334 2100
' Charges for Current Service 6,313 15 125 6,453 4,699
Other 859 7 1,627 2,493 3,192
TOTAL REVENUE 89,895 12,894 6,838 5,730 115,357 125,197
EXPENDITURES
Current:
City Council 213 213 297
City Administrator 913 567 1,480 1,569
City Treasurer 709 709 727
' City Attorney 1,807 1,807 1,563
City Clerk 449 449 402
Administrative Services 4,108 4,108 4,042
Community Development 3,499 413 3,912 4,096
Fire 16,505 16,505 13,173
Police 31,019 1,336 32,355 30,417
Economic Development 436 1,749 2,185 2,532
Community Services 6,936 252 3 37 7,228 6,677
' Library Services 2,703 72 2,775 2,743
Public Works 14,893 1,721 19 16,633 15,889
Non-Departmental(Note 19) 7,709 17 3,512 10,250 21,488 11,255
Capital Outlay 7,754 9,574 17,328 39,069
' Deb(Service(Notes 12 and 13)
Principal 2,089 2,089 36,810
Interest 187 7,121 7,308 11,833
TOTAL EXPENDITURES 91,650 12,568 12,725 21,629 138,572 183,094
' EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (1,755) 326 (5,887) (15,899) (23,215) (57,897)
OTHER FINANCING SOURCES(USES)
Operating Transfers In(Note 10) 3,093 3,220 6,313 6,896
Gain on Loan Restructuring 4,742
Proceeds of Long-Term Debt(notes 12 and 20) 38,762 263 39,025 79,905
Payments to Escrow(Note 20) (35,851) (35,851) (37,550)
Operating Transfers Out(note 10) (3,217) (1,785) (1,416) (6,418) (6,008)
TOTAL OTHER FINANCING SOURCES(USES) (124) (1,785) 6,131 (1,153) 3,069 47,985
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (1,879) (1,459) 244 (17,052) (20,146) (9,912)
FUND BALANCE,BEGINNING OF YEAR 30,654 15,121 46,886 56,690 149,351 159,263
Prior Period Adjustments(note 21) 907 172 (4,022) (2,943)
FUND BALANCE AS RESTATED 31,561 15,293 46,886 52,668 146,408 159,263
RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers In(note 10) 283 2,187 4,508 6,978 41,533
Residual Equity Transfers Out(note 10) (990) (515) (99) (4,494) (6,098) (41,533)
TOTAL RESIDUAL EQUITY TRANSFERS (707) 1,672 (99) 14 880
FUND BALANCE-END OF YEAR $28,975 $15,506 $47,031 $35,630 $127,142 $149,351
' See independent auditors'report and notes to general purpose financial statements 4
CITY OF HUNTINGTON BEACH '
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
GENERAL,SPECIAL REVENUE AND DEBT SERVICE FUNDS
FOR THE YEAR ENDING JUNE 30,1993 '
(EXPRESSED IN THOUSANDS)
GENERAL FUND SPECIAL REVENUE FUNDS
Variance '
Fevorable Variance Favorable
REVENUES: Budget Actual Unfavorable Actual Unfavorable
Property Taxes $29,773 $27,899 ($1,874)
Other Taxes 36,142 33,434 (2,708) 1,200 2,545 1,345 '
Licenses and Permits 3,688 3,642 (46) 1,235 1,187 (48)
Fines,Forfeitures and Penalties 1,650 1,354 (296)
From Use of Money and Property 6,289 4,657 (1,632) 1,003 1,543 540 '
From Other Agencies 11,544 11,737 193 8,193 7,597 (596)
Charges for Current Service S,158 6,313 (1,845) 15 15
Other 698 859 161 6 7 1
TOTAL REVENUE 97,942 89,895 8,047) 11,637 12,894 1,257
EXPENDITURES
Current:
City Council 262 213 49
City Administrator 1,003 913 90 552 567 (15)
City Treasurer 773 709 64 '
City Attomey 1,812 1,807 5
City Clerk 484 449 35
Administrative Services 4,276 4,108 168
Community Development 3,896 3,499 397 700 413 287 '
Fire 17,067 16,505 562
Police 31,629 31,019 610 1,373 1,336 37
Economic Development 876 436 440
Community Services 6,944 6,936 8 346 252 94 ,
Library Services 2,824 2,703 121 88 72 16
Public Works 16,571 14,893 1,678 1,784 1,721 63
Non-Departmental 7,919 7,709 210 152 17 135
Capital Outlay 22,138 7,754 14,384 '
Debt Service
Principal
Interest 225 187 38
TOTAL EXPENDITURES 95,685 91,650 4,035 28,009 12,568 15,441 '
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES 2,257 (1,755) (4,012) (16.372) 326 16,698
OTHER FINANCING SOURCES(USES) '
Operating Transfers In 3,093 3,093
Proceeds of Long-Term Debt
Payments to Escrow
Operating Transfers Out (3,217) (3,217) (1,785) (1,785)
TOTAL OTHER FINANCING SOURCES(USES) (124) (124) (1,785) (1,785) '
EXCESS OF REVENUE AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES 2,133 (1,879) (4,012) (18,157) (1,459) 16,698 '
FUND BALANCE,BEGINNING OF YEAR 30,654 30,654 15,121 15,121
Prior Period Adjustments 907 907 172 172
FUND BALANCE AS RESTATED 30,654 31,561 907 15,293 15,293
RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers In 283 283 1,789 2,187 398
Residual Equity Transfers Out 990 990 435 515 80
TOTAL RESIDUAL EQUITY TRANSFERS (707) (707) 1,354 1,672 318
FUND BALANCE-END OF YEAR $32,080 $28,975 ($3,105) ($1,510) $15,506 $17,016
r
See independent auditors'report and notes to general purpose financial statements 5 '
1
DEBT SERVICE FUNDS TOTAL
Variance
Favorable Variance Favorable
Budget Actual Unfavorable Budget Actual Unfavorsble
$5,203 $4,358 ($845) $34,976 $32.257 ($2,719)
37,342 35,979 (1,363)
4,923 4,829 (94)
1,650 1,354 (296)
' 3,690 2,480 (1,210) 10,982 8,680 (2,302)
19,737 19,334 (403)
8,158 6,328 (1,830)
704 866 162
8,893 6,838 (2,055) 118,472 109,627 (8,845)
262 213 49
1,555 1,480 75
' 773 709 64
1,812 1,807 5
484 449 35
4,276 4,108 168
' 4,596 3,912 684
17,067 16,505 562
33,002 32,355 647
876 436 440
' 18 3 15 7,308 7,191 117
2,912 2,775 137
18,355 16,614 1,741
3,590 3,512 78 11,661 11,238 423
' 22,138 7,754 14,384
1,644 2,089 (445) 1,644 2,089 (445)
9,415 7,121 2,294 9,640 7,308 2,332
14,667 12,725 1,942 138,361 116,943 21,418
(5,774) (5,887) (113) (19,889) (7,316) 12,573
' 3,149 3,220 71 6,242 6,313 71
38,762 38,762 38,762 38,762
(35,851) (35,851) (35,851) (35,851)
5 002 (5,002)
' 6,060 6,131 71 4,151 4,222 71
' 286 244 (42) (15,738) (3,094) 12,644
46,886 46,886 92,661 92,661
172 1,079 907
46,886 46,886 92,833 93,740 907
' 2,072 2,470 398
100 99 1 1525 1604 79
(100) (99) 1 547 866 319
' $47,072 $47,031 ($41) $77,642 $91,512 $13,870
' 6
CITY OF HUNTINGTON BEACH
COMBINED STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
FOR THE YEAR ENDING JUNE 30,1993 '
(IN THOUSANDS)
Fiduciary Fund
Types Memorandum Only
OPERATING REVENUES: Enterprise Internal Service Pension Trust Total 1993 Total 1992
Sales $15,458 $15,458 $14,899
Rentals 887 887 969
Fees for Service 8,279 8,979 17,258 17,425 '
Other 291 505 256 1,052 1,094
TOTAL OPERATING REVENUES 24,915 9,484 256 34,655 34,387
OPERATING EXPENSES:
Water Purchases 2,765 2,765 1,921 ,
Administration and Contract Services 11,286 2,982 14,268 13,115
Engineering 291 291 421
Production 4,280 4,280 2,844
Maintenance 1,200 1,200 1,040 t
Water Meters 1,128 1,128 1,013
Water Quality 350 350 315
Contribution to General Fund 2,221 2,221 2,158
Employee Medical Claims 3,549 3,549 2,457 ,
Liability Claims 3,026 3,026 2,344
Workers Compensation Claims 1,208 1,208 2,870
Pension Payments 338 338 268
Depreciation 1,505 2,792 4,297 4,419 '
TOTAL OPERATING EXPENSES 25,026 13,557 338 38,921 35,185
OPERATING INCOME(LOSS) (111) (4,073) (82) (4,266) (798)
NON-OPERATING REVENUES(EXPENSES)
Interest Income 2,083 1,109 3,192 2,462 ,
Issuance Costs (161)
Interest Expense (518) (305) (823) (943)
Joint Venture(Note 18) 293 (606) (313) 255
TOTAL NON-OPERATING REVENUES(EXPENSES) 1,858 198 2,056 1,613 ,
NET INCOME BEFORE OPERATING TRANSFERS 1,747 (3,875) (82) (2,210) 815
OPERATING TRANSFERS IN(OUT)(NOTE 10)
Operating Transfers In 277 671 948 637 '
Operating Transfers Out (475) (383) (858) (1,659)
TOTAL OPERATING TRANSFERS IN(OUT) (198) 288 90 (1,022)
NET INCOME BEFORE EXTRAORDINARY ITEMS 1,549 (3,587) (82) (2,120) (207) '
Extraordinary Loss on Early Extinguishment of Debt (357)
NET INCOME 1,549 (3,587) (82) (2,120) (564)
RETAINED EARNINGS-BEGINNING OF YEAR 13,584 (1,641) 157 12,100 12,664 '
RESIDUAL EQUITY TRANSFERS (NOTE 10)
Residual Equity Transfers In
Residual Equity Transfers Out (1,440) (1,440) '
Total Residual Equity Transfers (1,440) (1,440)
RETAINED EARNINGS-END OF YEAR $13,693 ($5,228) $75 $8,540 $12,100
1
1
See independent auditors'report and notes to general purpose financial statements 7 ,
CITY OF HUNTINGTON BEACH
' COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(IN THOUSANDS)
Fiduciary Memorandum
Proprietary Fund Types Fund Types Only
Internal Pension
Enterprise Service Trust Total1993 Total1992
OPERATING INCOME(LOSS) ($111) ($4,073) ($82) ($4,266) ($798)
' Adjustments Required to Reconcile Operating Income to Net
Cash Provided by Operating Activities
Depreciation 1,505 2,792 $4,297 4,457
Loss on Sale of Capital Assets 225 283 508
Decrease(Increase)in Joint Venture 606 606 (255)
Decrease(Increase)in Accounts Receivable (230) (230) (559)
Decrease(Increase)in Interest Receivable (4) (4) 267
Decrease(Increase)in Unbilled Receivable 120 120 150
Decrease(Increase)in Advance to Other Funds (296) (296) (2,745)
Decrease(Increase)in Inventory 121 121 (391)
Increase(Decrease)in Accounts Payable (40) (110) (150) 283
' Increase(Decrease)in Accrued Payroll 28 (9) 19 35
Increase(Decrease)in Claims Payable 6,152 6,152 1,837
Increase(Decrease)in Interest Payable (53) (53) 85
Increase(Decrease)in Amounts Due to Other Funds 215 215
' Decrease(Increase)in Amounts Due from Other Funds (4,815) (4,815) 72
Increase(Decrease)in Deposits (70) (70) 313
Increase(Decrease)in Compensated Absences (61) 25 (36) 119
TOTAL ADJUSTMENTS 1,517 4,867 6,384 3,668
' NET CASH PROVIDED BY OPERATING ACTIVITIES 1,406 794 (82) 2,118 2,870
CASH FLOWS FROM NON-CAPITAL FINANCING
ACTIVITIES
' Operating Transfers In From Other Funds 277 671 948
Operating Transfers Out to Other Funds (475) (383) (858) (1,022)
Residual Equity Transfers Out (1,440) (1,440)
TOTAL CASH FLOWS PROVIDED(USED)FROM NON-
CAPITAL FINANCING ACTIVITIES (1,638) 288 (1,350) (1,022)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Interest Paid (518) (273) (791) (1,100)
' Acquisition and Construction of Capital Assets (1,165) (650) (1,815) (1,618)
Proceeds of Sale of Plant,Property and Equipment 49 49
Extraordinary Loss on Early Extinguishment of Debt (357)
Issuance of Debt 5,718
Advances to Other Funds Repaid (1) (1) (700)
Principal Paid on Long-Term Debt (47) (1,116) (1,163) (6,107)
TOTAL CASH USED FOR CAPITAL (1,682) (2,039) (3,721) (4,164)
CASH FLOWS FROM INVESTING ACTIVITY
' Interest on Investments 2,083 1,109 3,192 255
Interest in Joint Venture (606) (606) 2,462
TOTAL CASH FLOWS FROM INVESTING ACTIVITY 2,083 503 2,586 2,717
NET INCREASE(DECREASE)IN CASH AND CASH
EQUIVALENTS 169 (454) (82) (367) 401
' CASH AND CASH EQUIVALENTS,BEGINNING OF YEAR 18,670 12,865 157 31,692 31,291
CASH AND CASH EQUIVALENTS END OF YEAR $18,839 $12,411 $75 $31,325 $31,692
NON-CASH ACTIVITIES:
Capital Lease Acquisitions $1,004 $1,004
Fixed Asset Contributions $1,821 $1,821
' Sea independent suditors'report and notes to general purpose financial statanents. 8
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
' 2. REPORTING ENTITY
3. CASH AND INVESTMENTS
4. DEFERRED COMPENSATION
' 5. DEFERRED REVENUE
6. RETIREMENT PLAN - NORMAL
' 7. RETIREMENT PLAN - SUPPLEMENTAL
8. POSTRETIREMENT MEDICAL INSURANCE
1 9. RISK MANAGEMENT
10. INTERFUND TRANSACTIONS
11. PROPRIETARY FUND SEGMENT INFORMATION
1 12. GENERAL LONG-TERM DEBT
i 13. PROPRIETARY FUND LONG-TERM DEBT
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS
15. FIXED ASSETS AND CAPITAL LEASES
' 16. RESERVES AND DESIGNATIONS OF FUND EQUITY
17. COMMITMENTS AND CONTINGENCIES
18. JOINT VENTURES
t 19. OTHER INFORMATION
20. DEFEASANCE OF LONG-TERM DEBT
21. PRIOR PERIOD ADJUSTMENTS
t
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
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
according to generally accepted accounting principles for governmental units prescribed '
by the Government Accounting Standards Board (GASB). The City uses various funds
and account groups to record its financial activity. A fund or account group is an
accounting entity with a self-balancing set of accounts 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 accounts for all financial activity not required to be accounted for in
another fund.
* Special Revenue Funds account for the receipt and expenditure of monies legally
restricted to a specific use.
. Debt Service Funds account for the receipt and disbursement of monies used for the '
payment of general and redevelopment long-term principal and interest.
. Capital Projects Funds account for monies used for the acquisition and construction of i
major capital facilities.
Proprietary Fund Types: '
. Enterprise Funds account for City operations financed similarly to private businesses
and are used when the City recovers the cost of a particular service fumished to the
public on a cost reimbursement (expenses including depreciation) basis or when the
City wants to determine net income.
. Internal Service Funds account for goods and services provided by one department of
the City to another on a cost-reimbursement basis.
Fiduciary Fund Tvpes: ,
. _Agency Funds account for assets held by the City as an agent for individuals or private
organizations.
. Pension Trust Funds account for contributions made and retirement benefits paid.
Account Groups: '
. The General Fixed Assets Account Group records and controls the City's capital assets
not owned by proprietary funds.
. The General Long Term Debt Account Group accounts for the unmatured long-term
liabilities financed from governmental funds. ,
9 '
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Accounting:
Governmental and agency funds use a modified accrual basis of accounting. The City
recognizes revenue when it is susceptible to accrual. This means that they must be
' measurable and available to finance current period expenditures. They include property
taxes, sales tax, federal and state grants and subventions, interest and certain charges
for current service. Revenues not susceptible to accrual include certain licenses,
permits, fines and forfeiture and other miscellaneous revenue. The City recognizes
expenditures when it incurs a measurable liability except that it recognizes interest on
long-term debt when due.
The City accounts for proprietary fund types and pension trust funds on the accrual basis
that is similar to private businesses. These funds recognize revenue when earned,
' regardless of the date of receipt, and recognize expenses when incurred.
c. Measurement Focus:
' The City's accounts for its governmental funds on a spending or "financial flow"
measurement focus where it generally includes only current assets and current liabilities
on the balance sheets. Statements of revenue, expenditures and changes in fund
' balance for governmental funds generally present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net current
assets.
' Proprietary funds and the pension trust fund record activity on a capital maintenance
measurement focus. Balance sheets show all current and non-current assets and
liabilities. Reported fund equity represents total net assets. Proprietary fund operating
' statements present increases (revenues) and decreases (expenses) in total net assets.
d. Budgets and Budgetary Accounting:
' The City Council annually adopts a budget by June 30th of the prior fiscal year for all
governmental fund types. The budgeted expenditures become the appropriations to the
various departments. The budget includes estimates for revenue that, along with the
appropriations, compute the budgetary fund balance. The appropriated budget covers
substantially all governmental fund type expenditures with the exception of capital
improvement projects (capital projects funds) carried forward from prior years, which
constitute a legally authorized non-appropriated budget. The City Council may amend
the budget at any time. The City Administrator may transfer funds from one object
purpose (personal services, operating expenditures or capital outlay expenditures) to
another within the same department without changing the total budget of a department.
A department head may transfer funds from like object categories of the same
department. The City Council must approve changes to departmental budgets.
Expenditures may not exceed appropriations at the departmental level. All unused
appropriations lapse at year-end. During the year the City Council made several
supplemental appropriations.
' 10
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Budgets and Budgetary Accounting:
The City Council adopts governmental fund budgets consistently with generally accepted
accounting principles as legally required. There are no significant non-budgeted
financial activities. Revenues for special revenue funds are budgeted by entitlements,
grants and estimates of future development and economic growth. Expenditures and
transfers are budgeted based upon available financial resources.
On or before February 28th of each year, each department submits data to the City
Administrator for budget preparation. Staff prepares the budget by fund, function and
activity. The budget includes information on past years, current year estimates and
requested appropriations for the next fiscal year. Before May 1st, the City Council
receives the proposed budget. The City Council holds public hearings and may amend
the budget by a majority vote. Any changes to the budget must be within the available '
revenues and reserves.
These financial statements show budgetary data for the General, Special Revenue and
Debt Service Funds. They do not show budgetary information for the Capital Projects
Funds since these are budgeted on a long-term project by project basis.
The City uses an encumbrance system as an aid in controlling expenditures. When the ,
City issues a purchase order for goods or services, it records an encumbrance until the
vendor delivers the goods or performs the service. At year-end, the City reports all
outstanding encumbrances as reservations of fund balance in governmental fund types. '
The City reappropriates these encumbrances into the new fiscal year.
e. Investments:
The City records Investments, other than Deferred Compensation investments, at cost,
which is less than market at June 30, 1993. If market values decline below cost, no loss
is recorded unless such declines are permanent. The assets of the Employee Deferred '
Compensation Fund (an agency fund) are reported at market value rather than cost.
f. Property and Equipment:
The City records acquisitions of property and equipment as expenditures in
governmental fund types at the time of purchase. It capitalizes them at historical cost or
estimated historical cost in the General Fixed Assets Account Group. Land held by the '
Redevelopment Agency for resale is capitalized at the lower of cost or estimated net
realizable value in the Redevelopment Agency Capital Projects Fund. Expenditures for
infrastructure (roads, curbs, sidewalks, sewers, etc.) are not capitalized as such assets
are immovable and generally of value only to the City. No depreciation is provided for
any asset capitalized in the General Fixed Assets Account Group.
ri
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
f. Property and Equipment:
The City records all purchased fixed assets acquired by proprietary funds at historical
' cost (where historical records are available) and at estimated historical cost where no
historical records exist. Both proprietary and general fixed assets acquired from gifts or
contributions are capitalized at fair market value at the time received, or in the case of
water fixed assets, at City Council acceptance date. Depreciation for proprietary fund
donated and acquired assets is calculated on the straight-line method over the estimated
useful lives of the assets shown below and charged to the respective fund.
' Production, pumping
transmission and distribution
plant 10 to 50 years
' General Plant 20 to 50 years
Transportation Equipment 5 to 30 years
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The
amount of interest to be capitalized is calculated by offsetting interest expense incurred
from the date of borrowing until completion of the project with interest earned on the
invested proceeds over the same period. In prior years the City capitalized $185,000 of
interest on the construction of the Emerald Cove apartment complex.
g. Inventories:
Inventories are recorded in governmental funds by the consumption method. Inventories
are capitalized and recorded as expenditures when used. Inventories of materials and
supplies totaled $388,000 at year-end and are valued using the average cost method.
This amount is offset with a reservation of fund balance.
h. Interfund Transactions:
' Numerous transactions occur between funds of the City resulting in; operating transfers,
residual equity transfers, amounts due to or due from other funds and amounts
advanced to or from other funds.
' . Operating transfers are non-recurring transfers between funds.
Residual equity transfers are non-routine permanent transfers of equity between
funds.
1 . Amounts due to or from are the current (due within one year) portion of monies that
are to be paid or to be received from other funds.
• Amounts that are classified as advances from other funds are the long-term portion
of monies which will be repaid to other funds.
1 Amounts classified as advances to other funds represent the long-term portion of
amounts to be received from other funds. In governmental funds, amounts
advanced to other funds are also offset equally by a fund balance reserve account,
1 indicating that they are not spendable financial resources.
i
� 12
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 309 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): '
h. Interfund Transactions:
Quasi-extemal transactions are interfund transactions that would be treated as
revenues, expenditures or expenses if they had involved organizations external to the ,
City. The City records all quasi-extemal transactions as revenues, expenditures or
expenses. Transactions that reimburse a fund for expenditures or expenses initially
made from it that, are recorded as expenditures/expenses. All other interfund
transactions are reported as operating transfers.
I. Long-Term Obligations:
The City records governmental fund long-term debt (principal, interest and fiscal 1
charges) as an expenditure when paid regardless of when the expenditure is incurred.
Obligations financed from spendable, available financial resources are reported as a
fund liability. The remainder is reported in the General Long-Term Debt Account Group.
Bond discounts and issuance costs are recognized in the period that the debt is issued.
Proprietary fund long-term debt is accounted for in the respective funds. Interest on the
debt is recorded when incurred. Principal due within one year is shown as a current
liability. The remainder is classified as a long-term liability. Bond discounts are
recorded as a reduction of outstanding debt and are deferred and amortized over the life '
of the debt.
j. Employee Compensated Absences:
The City records the cost of vacation and sick leave when paid in the governmental fund
types and when incurred in the proprietary fund types. The City records the
governmental fund liability in the General Long-Term Debt Account Group since these
amounts will be paid with future financial resources rather than currently available
spendable resources. The liability in proprietary fund types is recorded as a fund liability.
The City records sick leave liability using benefits earned by employees at the balance '
sheet date that will result in termination payments rather than compensated absences.
The City records vacation leave liability using employees' rights to receive compensation
attributable to services already rendered.
k. Fund Equity:
The various types of fund equity recorded on the balance sheet are described below:
Governmental Fund Tyoes
• Reserved Fund Balance is the portion of fund balance that is not appropriable for '
expenditure or that is legally segregated for a specific future use.
• Unreserved/Designated Fund Balance is the portion of fund balance that has been ,
tentatively set aside by the City Council.
13
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. Fund Equity:
• Unreserved/Undesignated Fund Balance is the portion of fund balance that is
' available to be spent by the City Council.
Proprietary Fund Types
i • Retained Earnings is the accumulated earnings of an enterprise or internal service
i fund.
' • Contributed Capital is the permanent fund capital of a proprietary fund created when
assets are contributed to a proprietary fund or a residual equity transfer is made to a
proprietary fund.
LFiduciary Fund Tyoes
Pension Trust Fund
• Reserved fund balance is the portion of fund balance that is reserved for future
pension payments.
Account Groups
I • Investment in General Fixed Assets is the City's investment in general fixed assets
recorded at cost.
I. Property Tax Revenue:
Property tax in California is levied according to Article 13-A of the California
Constitution. The basic levy is a countywide-levy of one percent of total assessed
' valuation and is allocated to county government, school districts, cities and special
districts. Additional levies require two-thirds approval by voters and are allocated
directly to the specific government. Property tax revenue is recognized in the fiscal year
levied provided that the revenue is collected during the year or within 60 days of year-
end.
The County acts as a collection agent for property tax for all of the local governmental
1 units. Property taxes are normally collected twice per year. The property tax calendar is
as follows:
' Lien Date- March 1 st of prior fiscal year
• Levy Date-July 1st
• Due Date, First Installment November 10th
Due Date, Second Installment- February 10th
' Delinquent Date, First Installment- December 11th
• Delinquent Date, Second Installment- February 11th
1 The taxes are paid to the local governments periodically during the year. Below are the
dates and percentages of the payments from the County (dates and percentages vary
slightly from year to year).
14
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
I. Property Tax Revenue:
November 30th- 5%
" December 19th-20% '
• December 28th-20%
February 1st- balance of first installment
March 28th- 5%
April 26th- 34%
• July 26th of next fiscal year- balance of second installment
m. Allocation of Interest Income Among Funds: ,
The City pools all non-restricted cash for investment purchases and records interest
income based on month-end cash balances. Funds that have restricted cash record
interest income in the respective fund.
n. Equipment Replacement Fund:
All machinery and equipment not owned by proprietary funds are owned by the
Equipment Replacement Fund, an internal service fund, and leased to user departments.
All machinery and equipment not replacing existing equipment is purchased by the
respective fund and transferred to the Equipment Replacement Fund. The City records
this transaction as a capital outlay expenditure in the fund making the purchase and
contributed capital in the Equipment Replacement Fund.
o. Total Columns and Comparative Data on Financial Statements:
The combined financial statements include "total (memorandum only)" columns which
total the financial statement amounts of the fund types and account groups. The columns
are labeled "memorandum only" because the totals are not comparable to a
consolidation since the City does not eliminate interfund transactions (except for certain
leases between the oversight unit and component units described in note 2).
Comparative total data for the prior year in the accompanying financial statements
provide an understanding of changes in the City's financial position and operations.
However, the City does not show comparative data for individual funds in all statements
because it would make the statements too long and confusing.
p. Joint Ventures:
The City is involved in five joint ventures. Two of them are recorded in a proprietary '
fund type using the equity method of accounting. The net increase or decrease in the
City's equity position is a non-operating revenue or expense. Three of the joint ventures
are recorded in governmental funds and the City's interest is recorded in the General
Fixed Assets Account Group(see note 18).
�s �
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
' q. PERS Surplus:
During the year the City utilized surplus funds in its account at the California Public
Retirement System (CALPERS) representing excess contributions received from past
years. The City elected to reduce future contribution rates to CALPERS and recorded
the reductions as revenues with offsetting expenditures.
r. Cash Flow Statements:
For purposes of the Statement of Cash Flows, the Proprietary and Similar Trust Fund
types consider all cash and investments to be cash equivalents, as these funds
participate in the city-wide cash and investment pool.
2. REPORTING ENTITY:
The City of Huntington Beach is the primary government. Component units are legally
' separate organizations for which the City Council is responsible for, or organizations that
if excluded from the accompanying financial statements, would make them misleading.
The component units described below are blended (presented as if they are part of the
primary government) with the primary government for financial reporting purposes
1 because either the component units have governing bodies identical to the City's (the
City Council) or provide services exclusively to the City.
' Huntington Beach Public Facilities Corporation (Public Facilities Corporation)- This
entity was formed in 1970 to issue bonds to construct the Civic Center and Central
Library complexes. The Public Facilities Corporation leases the Central Library
complex to the City. The lease is a capital lease because title to the facility passes
to the City upon termination of the lease. The City Council appointed the Public
Facilities Corporation's original governing body. The Public Facilities Corporation
appoints any replacements but can be vetoed by the City Council. The City Council
adopts an annual budget for the Public Facilities Corporation which cannot terminate
its lease with the City if the City meets the lease's terms. The assets and related
revenue and expenditures that are used for repayment of the bonds are recorded in
a debt service fund. Assets used to construct capital improvements were recorded
in a capital projects fund. Since the Public Facilities Corporation is a part of the
City's reporting entity, the capital lease between the City and the Public Facilities
Corporation is not shown on the combined balance sheet.
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 City
1 leases the facilities from the Parking Authority. The City Council serves as the
governing body of the Parking Authority. The lease is a capital lease because the
City Council may, by resolution, dissolve the Parking Authority and deed the assets
to the City. The Parking Authority's governing body is the City Council which
annually adopts a budget for the Parking Authority. The Parking Authority is
financially dependent on the City for all its operations. At any time during the term
of the lease the City Council may forgive a payment by resolution if there is enough
Icash in the Parking Authority to meet the debt service requirements. The assets and
i 16
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
2. REPORTING ENTITY (CONTINUED):
related revenue and expenditures used for repayment of the bonds are recorded in
a debt service fund. Assets used to construct capital improvements are recorded in
a capital projects fund. Since the Parking Authority is a part of the City's reporting
entity,the capital lease is not on the combined balance sheet.
• Redevelopment Agency of the City of Huntington Beach (the Agency)- This entity
was formed in 1967 to renovate older areas in the City. The City Council serves as
its governing body and adopts its annual budget. The Agency is financially
dependent on the City for all of its operations. The tax increment revenue received
and disbursed by the Agency is recorded in a debt service fund and the capital
improvements made are recorded in a capital projects fund. The Agency's debt is
recorded in the General Long-Term Debt Account Group since these amounts will be
paid from future financial resources.
• Huntington Beach Civic Improvement Corporation (Civic Improvement Corporation)-
This corporation was formed to provide for the defeasance of the Huntington Beach '
Public Facilities Corporation Leasehold Mortgage Bonds- 1st Issue and provide
funds for capital improvements. The City Council serves as the corporation's
governing body. The Civic Improvement Corporation is dependent upon the City for
all of its operations. The Civic Improvement Corporation has title to the Civic Center
complex and leases it to the City. It is a capital lease because title to the Civic
Center complex reverts to the City at the end of the lease. The lease cannot be
terminated if the City meets all its financial obligations. The assets pledged for
repayment of the certificates of participation and the related revenues and
expenditures are recorded in the Civic Improvement Corporation Debt Service Fund.
Since the Civic Improvement Corporation is a part of the City's reporting entity, the
capital lease is not shown on the combined balance sheet.
• Huntington Beach Public Financing Authority (Public Financing Authority)- This
corporation was formed in March, 1988 to issue debt to finance public improvements '
and other capital purchases for the City and Redevelopment Agency. The
Authority's governing body is the City Council which also adopts the annual budget.
The Authority is financially dependent on the City. The Authority's activity is
recorded as both a debt service fund and as a portion of the activity in the
Equipment Replacement Fund (a proprietary fund type).
• The City of Huntington Beach Community Facilities District 1990-1 (Community
Facilities District) and the Reservoir Hill Assessment District (the Assessment
District) were formed to construct public improvements within the City boundaries.
The governing board of these districts is the City Council. The proceeds of debt
issued and the expenditure for the public improvements are recorded in capital
projects funds. The Community Facilities District's debt is not an obligation of the
City and the monies collected for the debt are recorded in an agency fund. The
Assessment District's debt is recorded in a debt service fund. ,
1
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
2. REPORTING ENTITY (CONTINUED):
The Huntinaton Beach Auto Business Improvement District (the Business
Improvement District) was formed in 1992 to fund capital improvements within this
non-contiguous district. The District's governing body is the City Council. The
business owners within the district petitioned the City Council under the Streets and
Highways Code to form the district which will assist in the funding of an electronic
reader board sign advertising the auto dealers. There was no financial activity for
the district during the year.
The joint ventures described in note 18 are not part of the reporting entity because the
City does not have primary responsibility for their operations. The City is fiscal agent for
1 two of these joint ventures (Central Net Authority and the West Orange County Water
Board). The activity of the Central Net Authority is recorded in an agency fund. The
activity of the West Orange County Water Board is recorded in the Water Fund (an
enterprise fund).
There are many other governmental agencies, including the County of Orange, various
elementary school districts, the Coast Community College District, the Huntington Beach
Union High School District, various assessment districts, and other special districts which
provide services within the City. These are not component units of the City of
Huntington Beach and their financial information is not in this report.
1 3. CASH AND INVESTMENTS:
Cash and investments at June 30, 1993 totaled $118,172,000 and are shown in the
' accompanying financial statements as follows (in thousands):
Cash and Investments $84,988
Cash with Fiscal Agent 33.184
Total 118 172
The City's investment policy and section 53601 of the California Government Code
allows the following investments:
a. Bankers acceptances
b. Negotiable certificates of deposit
' c. Commercial paper
d. Bonds issued by the City
e. Obligations of the United States Treasury
f. Federal Agency Obligations of:
Federal Intermediate Credit Bank (FICBs)
Federal Land Bank (FLBs)
' Federal Home Loan Bank (FHLBs)
Federal National Mortgage Association (FNMAs)
Small Business Administration (SBAs)
' Government National Mortgage Association (GNMAs)
Tennessee Valley Authorities (TVAs)
Student Loan Association Notes (Sallie Mae's)
I ra
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
3. CASH AND INVESTMENTS (CONTINUED):
g. Obligations of the State of California or of any local agency within the ,
State of California:
The Local Agency Investment Fund (LAIF) and the County of Orange Investment
Pool are special funds of the California State Treasury and the County of Orange,
respectively, through which any qualified local government may pool investments.
Investments are highly liquid and are secured by the full faith and credit of each
agency.
h. Repurchase Agreements:
Throughout the year ending June 30, 1993, the City utilized overnight repurchase
agreements for temporary investment of idle cash. Such agreements were used 20
to 22 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 allows reverse-repurchase agreements, the City '
did not borrow through the use of reverse repurchase agreements at any time during
the year.
j. Medium-Term Corporate Notes
k. Mutual Funds
Safekeeping Arranoements for Investments
Under Sections 53651 to 53653 of the California Government Code, as amended, the
collateral underlying an agency's investments must be delivered to the City. If U.S.
Federal obligations are used as the underlying collateral, the delivery may be made by '
"book-entry" only. For all other collateral, the security must be physically delivered to
the City or a third-party custodial agent.
A bank may maintain the underlying securities in its Trust or Safekeeping Department
when acting as a third-party custodial agent.
The City categorizes its balance of deposits and investments with financial institutions
under the following risk categories:
Deposits
Category 1- Deposits insured by FDIC, RTC, a state depository insurance fund or a
multiple-financial institution collateral pool, or deposits collateralized with securities
held by the City or the City's agent in the City's name. ,
19
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
3. CASH AND INVESTMENTS (CONTINUED):
• Category 2- Deposits collateralized with securities held by the pledging financial
institutions trust department in the City's name.
• Category 3- Uncollateralized deposits, or collateralized but the pledged securities
are not held in the City's name.
Investments• Category 1- Investments insured by SIPC, or where the City or its agent hold the
securities.
Category 2- Uninsured investments, where the financial institution's trust department
or agent holds the securities.
' Category 3- Uninsured investments, where the financial institution's trust department
or agent holds the securities but not in the City's name.
A summary of the City's deposits and investments is(in thousands):
1 DEPOSITS Category 1 Category 2 Category 3 Bank Market Value
Balance/cost
Demand Accounts $200 $3,345 $3,545 $3,545
' Cash With Fiscal Agent 10,339 10,339 $10,339
Subtotal 200 3,345 10,339 13,884 13,884
INVESTMENTS
' Corporate Notes 4,000 4,000 4,000
Federal Mortgage Notes 1,000 1,000 1,000
' Deterred Compensation 22,845 22,845 22,845
Repurchase Agreements 3,400 3,400 3,400
Subtotal 31,245 31,245 31,245
' TOTAL CLASSIFIABLE CASH $200 $3,345 $41,584 45,129 45,129
ANDINVESTMENTS
Investment in L.A.I.F. 15,497 15,497
' Investment in County Pool 60,693 60,693
Petty Cash 61 61
Subtotal 121,380 121,380
' Less Warrants Outstanding (3,208) (3,208)
Total Cash and Investments $118,172 $118,172
These deposits and investments are recorded at cost, which approximates market value.
20
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
4. DEFERRED COMPENSATION:
1
Permanent City employees may defer a portion of their salary under Section 457 of the
Internal Revenue Code. The City (or fiscal agent) invests them in savings accounts,
certificates of deposit and other prudent investments. The City retains title to these
funds until the employee withdraws them, which may take place at termination or any
later date. The assets of the plan remain subject to the general claims of creditors of the
City. The amount of deferred compensation payable at June 30, 1993 was $24,409,000.
Since the City has the fiduciary responsibility to administer the plan, the assets are
recorded in an agency fund. The City believes it is unlikely that these assets will be
used to pay general creditors now or in the future.
5. DEFERRED REVENUE: '
Certain revenues in governmental funds are deferred until received. Interest on these
amounts varies. The amounts are (in thousands):
GENERALFUND
Land Sales from City to Agency from 1982 to 1993 $32,834
Interest on above amounts and on advances through 1993 21,135
TOTAL GENERAL FUND 53,969
SPECIAL REVENUE FUNDS
Park Acquisition and Development Fund: '
Sale of Emerald Cove Site to Redevelopment Agency 1.984
Development fees deferred in 1985 248
Land-in-lieu of park fees 2,878 '
Interest on above amounts 896
Total Park Acquisition and Development Fund 6,006
Sewer Fund: '
Deferred development fees 38
Interest on above amounts and on advances 103
Total Sewer Fund 141 '
Gas Tax Fund:
Interest on advances 261
Drainage Fund:
Deferred Development Fees 53
Interest on above amounts and on advances 223
Total Drainage Fund 276
TOTAL SPECIAL REVENUE FUNDS 6,684
CAPITAL PROJECT FUNDS
Capital Improvement Fund:
Interest on advances 76
Parking Authority Fund:
Interest on advances 16
TOTAL CAPITAL PROJECTS FUND 92 '
TOTAL DEFERRED REVENUE 60 745
21
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
6. RETIREMENT PLAN - NORMAL:
a. Plan Description:
The City contributes to the California Public Employees Retirement System (CALPERS),
' an agent, multiple employer retirement system that acts as a common investment and
administrative agent for participating public entities in California. Generally only an
employee's base salary (excluding overtime) is subject to retirement benefits. The total
payroll for the year ending June 30, 1993 was $59,998,741. The payroll subject to
' retirement benefits was$54,524,234.
The plan covers all permanent City employees and temporary employees who work
1 more than 1,000 hours in a twelve month period. Benefits vest after five years of
service. benefits for employees vary based upon final yearly compensation, safety or
non-safety status, age and retirement. There are two groups of covered employees:
( Safety employees- include sworn police, fire and marine safety employees.
.Miscellaneous employees-all other covered employees.
b. Employee and Employer Contribution Obligations:
The City makes two types of contributions for covered employees. The first contribution
represents the amount required to be made by the City (the employer rate). The second
represents an amount which is normally paid by the employee, but is reimbursed to the
employee by the City (the member rate). The member rate is set by contract and
1 normally remains unchanged.
The employer rate is set by CALPERS and changes from year to year. During the year
the rate also changed so there were three rates in effect during the year. The employer
rates for the fiscal year ending June 30, 1993 are shown below:
7/1/92 to 9/1/92 Miscellaneous Safety
Cateaory Cateaory
' Normal Cost Rate 6.845% 14.563%
Unfunded Liability Rate .392% .530%
Total Required 7.23�7% 15�093�%
9/1/92 to 1/1/93 Miscellaneous Safety
Cateaory Cateaory
Normal Cost Rate 6.167% 14.188%
Unfunded Liability Rate .690% .0j 58%)
Total Required 6.85�7% 14�130%
' 1/1/93 to 6/30/93 Miscellaneous Safety
Cateaory Cateaory
Normal Cost Rate 5.941% 14.063%
1 Unfunded Liability Rate .789% .254%
Total Required 6.73�0% 13.809%
i
t 22
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
6. RETIREMENT PLAN - NORMAL (CONTINUED): ,
b. Employee and Employer Contribution Obligations:
The member rates for the fiscal year ending June 30, 1993 are as follows:
Member
Rates as a
Percentage
Membership Group: of Wanes
Local Miscellaneous Members 7%
Local Safety Members I g%771
The employer rate contributes the remaining amounts necessary to fund the benefits for
its members, using the actuarial basis recommended by the CALPERS actuaries and
adopted by the Board of Administration.
c. Funding Status and Progress: ,
Pension benefit obligation is a standardized measure of the present value of pension
benefits estimated to be payable in the future due to employee service to date. It helps
assess the funding status of the system, assess progress made in accumulating enough
assets to pay benefits when due, and make comparisons among employers. This
measure is independent of the funding method used to determine City contributions to
the system.
CALPERS conducted an actuarial valuation to determine the City's pension benefit
obligation as of June 30, 1992. Significant actuarial assumptions used were as follows: ,
• Rate of return on present and future assets- 8.75% per annum
• Projected salary increases for covered employees due to inflation-4.5% per year
• Projected salary increases due to merit- .75% per year. ,
• Across the board real salary increases- 1.75% (2.00% for safety)
• Postretirement benefit increases-0%
The unfunded pension benefit obligation at June 30, 1992 was$6,226,220. '
There was no change from the prior year due to changes in benefit or actuarial
provisions.
13 ,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
6. RETIREMENT PLAN - NORMAL (CONTINUED):
' c. Funding Status and Progress:
Other actuarial information is (in thousands):
Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving benefits $75,751
Current Employees:
Accumulated employee contributions and
investment earnings 49,130
Employer Financed, vested 62,250
Employer Financed, Non-Vested 2.686
Total Pension Benefit Obligation 189,817
Less Net Assets Available for benefits at cost (market
value is$207,090) 18L 3,591)
Unfunded Pension Benefit Obligation 0,226
d. Actuarially Determined Contribution Requirements and Contributions Made:
CALPERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit
cost method and takes into account those benefits that are expected to be earned in the
future as well as those already accrued. This method states that the normal cost for an
employee is the level amount which would fund the projected benefit if it were paid
' annually from date of employment until retirement. CALPERS uses a modification of the
Entry Age Cost method in which the employer's total normal cost is expressed as a level
percent of payroll. CALPERS also uses the level percentage of payroll method to
amortize any unfunded actuarial liabilities. The amortization period of the unfunded
' actuarial liability ends in the year 2000 for prior service benefits and in 2011 for current
service benefits.
The significant actuarial assumptions used to compute the actuarially determined
contribution requirement are the same as those used to compute the pension benefit
obligation, as previously described. The contribution to the system for the year was
$9,833,753 made according to actuarially determined requirements computed through
an actuarial valuation performed as of June 30, 1992.
% of
CALPERS CONTRIBUTIONS Contribution Payroll
Employee share reimbursed by
City $4,358,987 7.99%
Employer Share 5,474,766 10.04%
' Total $9,833,753 18.03%
Analysis of Employer Share
1 Normal Cost $5,059,145 9.28%
Unfunded Actuarial Liability 415,621 .76%
Total Employer Share 5 474 766 10.04%
24
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
6. RETIREMENT PLAN - NORMAL (CONTINUED):
e. Trend Information:
Trend information gives an indication of the progress made in accumulating enough
assets to pay benefits when due. Ten year trend information for the City of Huntington
Beach is not published in the CALPERS Annual Report. Therefore, ten years of trend
information are required within the City's financial statements since CALPERS does not
display financial information for individual agencies within their report. 1987/88 is the
first year that this actuarial information has been made available by CALPERS and until
ten years are available, as much information as available will be presented (dollar
amounts in millions):
198"7 1987/88 1988/89 1989/90 1 1990/91 1991/92 1992/93 t
Net Assets Available for benefits $105.6 $120.6 $139.5 $158.7 $168.6 $183.5
Pension Benefit Obligation $115.3 $126.7 $138.9 $157.4 $171.9 $189.8
Net Assets Available for benefits expressed
as a percentage of the pension benefit 91.6 95.1 100.4 100.8 98.1 96.7
obligation
Unfunded Pension Benefit Obligation $9.7 $6.1 3. $1.3 $3.2 $6.2
Annual Covered Payroll $32.1 $34.4 $37.0 $40.4 $45.0 $48.4 $54.5
Unfunded Pension Benefit Obligation as a
percentage of covered payroll 26.3% 16.7% 1.5% 2.8% 6.9% 11.3% '
Employer Contributions $4.5 $4.4 $4.5 $4.1 $3.5 $5.0 $5.5
Employer Contributions expressed as a
percentage of annual covered payroll 14.1% 12.7% 11.9% 10.1% 7.8% 10.3% 9.3% '
made according to actuarially determined
requirements
7. RETIREMENT PLAN - SUPPLEMENTAL:
a. Plan Description:
The City provides a supplemental retirement plan to all employees covered under the
City's normal retirement plan with CALPERS (see note 6). It is a single-employer PERS.
It is a defined benefit plan and will pay the retiree an additional amount to his or her
normal amount for life. The amount will cease upon the employee's death. The amount
is computed at retirement and remains constant for his or her life. All employees '
participating in the City's normal plan participate in the supplemental plan. 157 retirees
received benefits during the year.
21
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
' 7. RETIREMENT PLAN - SUPPLEMENTAL ( CONTINUED):
b. Employer Obligations and Funding Status and Progress:
The City annually transfers the estimated payments for the year from the General Fund
to a pension trust fund (pay-as-you-go-basis). Cash remaining in the pension trust fund
results from differences between estimated and actual payments. An independent
actuary conducted a study of the plan and the required funding for the plan. Unless
otherwise stated, the actuarial information for the surmlemental plan is identical to the
1 Citv's normal elan. The employer contribution rate for all permanent non-safety
employees this year is 3.16% of base salary for all permanent employees covered under
the City's normal retirement plan. Below is an analysis of the pension benefit obligation
1 and unfunded liability for the plan (in thousands):
Retirees Currently Receiving Benefits $2,891
Active, Vested Safety Employees 4,743
Active, Vested Non-Safety Employees 5.416
Total Pension Benefit Obligation 13,050
Less Assets Available (7755)
Unfunded Liability 12 975
The changes in pension benefit obligation during the year were (in thousands):
Pension Benefit Obligation, Beginning of Year $11,339
Increase Due to Lack of Funding 1,400
Decrease Due to Assumption Change (100)
Salary Increase 300
New Participants 111
Pension Benefit Obligation, End of Year 13 O50
c. Trend Information
' Trend information is available only from fiscal year 1990/91 forward. Until ten years of
trend information is available, the City will present as many years as are available. The
available trend information is (in thousands):
' 26
CITY OF HUN TINGTON BEACH
NOTES TO FINANCIAL STATEMENTS ,
JUNE 30 , 1993
7. RETIREMENT PLAN - SUPPLEMENTAL ( CONTINUED):
c. Trend Information
1990/91 1991/92 1992/93
Net Assets Available for benefits $175 $157 $75
Pension Benefit Obligation $10,507 $11,402 $13,050
Net Assets Available for benefits '
expressed as a percentage of the
pension benefit obligation 1.67% 1.38% .57%
Annual Covered Payroll $40,400 $48,400 $54,524
Unfunded Pension Benefit Obligation $10,332 $11,245 $13,050
Unfunded Pension Benefit Obligation
as a Percentage of Covered 25.6% 23.2% 23.9%
Payroll
Employer Contributions $400 $240 $240
Employer Contributions expressed as
a percentage of annual covered '
payroll made according to 1.0% .5% .4%
actuarialy determined
requirements '
d.Accounting for Supplemental Pension Plan: '
The City records expenditures for this plan in a pension trust fund. During the year,
other funds contributed $240,000 and the pension trust fund expended $333,000. The ,
total pension benefit obligation for both the normal and supplemental plans are (in
thousands):
Total Obligation $202 867 '
Assets Available 18( 3.666) '
Unfunded Pension Benefit
Obligation 19 201
8. POSTRETIREMENT MEDICAL INSURANCE: ,
a. Plan Description:
The City agreed via contract with each employee association to provide post-retirement
medical insurance to retirees. The benefits are based on years of service and are
available to all retirees who meet all three of the following criteria:
. At the time of retirement the employee is employed by the city. ,
27 ,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 8. POSTRETIREMENT MEDICAL INSURANCE (CONTINUED):
a. Plan Description:
. At the time of retirement the employee has a minimum of ten years of service credit or
' is granted a service connected disability retirement.
. Following official separation from the City, CALPERS grants a retirement allowance.
The City's obligation to provide the benefits to a retiree ceases when either of the
following occurs:
' . During any period the retiree is eligible to receive health insurance at the expense of
another employer.
. The retiree becomes eligible to enroll automatically or voluntarily in Medicare.
If a retiree dies, the benefits that would be payable for his or.her insurance are provided
to the spouse or family for 18 months. Benefits for insurance premiums are payable
based on the years of service credit for the retiree. The retiree may use the subsidy for
any of the insurance plans that the City's active employees may participate in.
b. Accounting and Funding:
The Retiree Medical Insurance Fund is an agency fund. Other funds contribute on a
' periodic basis. Employees do not contribute. There are no outstanding liabilities at
year-end. During the year other funds contributed $549,000. The fund gave subsidies of
$251,000. The plan advance-funded, but not on an actuarial basis. Ninety-seven
participants were eligible to receive benefits at June 30, 1993.
' 9. RISK MANAGEMENT:
The City is exposed to various risks of losses related to torts; theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; natural disasters and
employee health insurance claims.
The City established a Self-Insurance Fund (an internal service fund) to finance
uninsured risks of loss. This fund provides insurance for individual liability claims in
excess of up to $1,000,000, workers compenstion coverage of up to $350,000 per claim
' and the first $100,000 of each health claim. The City is also a participant in the Big
Independent Cities Excess Pool Joint Powers Authority (see note 18) which provides
insurance for individual liability claims in excess of $1,000,000. The City purchases
' independent insurance coverage for health and workers compensation claims in excess
of the above amounts. Settled claims have not exceeded this commercial coverage in
any of the past three fiscal years.
1
' 28
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 309 1993
9. RISK MANAGEMENT CONTINUED): '
All funds of the City participate in the program and make payments to the Self-Insurance '
Fund based on historical cost information. The City adjusts payments over a reasonable
period of time so that the revenues and expenses of the Self-Insurance Fund are
approximately equal. ,
The claims liability of $14,120,000 is composed of the following claim totals (in
thousands):
Claim Type Amount
Liability $9,253
Workers Compensation 4,702 ,
Health 165
Total 14 120
The City reports liabilities at year-end to the extent that it can reasonably estimate the
claims prior to the issuance of the financial statements. '
Balance Balance,
July 1, June 30,
1992 Additions Reductions 1993 '
Liability $2,767 $7,222 ($736) $9,253
Workers 5,117 1,375 (1,790) 4,702
Compensation
Health 84 3.214 (3,1331 165 ,
Total $77,968 $11,811 LU.665J9 $14,120
19
,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 10. INTERFUND TRANSACTIONS:
' a. Receivables/Payables:
Interfund advances at year-end were (in thousands):
Advances
Advances from
to Other Other
Funds Funds
General Fund $73,694
Special Revenue Funds:
' Sewer 317
Drainage 527
Gas Tax 760
Park Acquisition and Development 3,128
Debt Service Funds:
Public Financing Authority 30,758
Capital Projects Funds
Parking Authority 116
Capital Improvement 276
Low-Income Housing 517
Enterprise Funds:
Water Utility 4,723
Emerald Cove Housing 243
Internal Service Funds
General Long-Term Debt Account - 114,573
Group
Totals 114 816 114 816
b. Transfers In/Out:
Below is a schedule reconciling operating and residual equity transfers in and out (in
thousands):
Operating Transfers In, Governmental Funds $6,313
' Operating Transfers In, Proprietary Funds 948
Transfer in to Mello-Roos Assessment District
Fund (a Trust and Agency Fund)which does
not show a statement of revenue and 15
expense
Total Operating Transfers In $7,276
Operating Transfers Out, Governmental $6,418
Funds
Operating Transfers Out, Proprietary Funds 858
Total Operating Transfers Out 7 276
30
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 309 1993
10. INTERFUND TRANSACTIONS (CONTINUED): '
b. Transfers In/Out: ,
Residual Equity Transfers In, Govemmental $6,978 ,
Funds
Residual Equity Transfers Out, Governmental
Funds 6,098
Residual Equity Transfers Out, Proprietary
Funds 1,440
Transfers from General Fund to Central Net ,
Fund (a Trust and Agency Fund)which does
not show a statement of revenue and
expense 5( 60)
Total Residual Equity Transfers Out 978
c. Due to/from Other Funds:
Below is a schedule of amounts due to and due from other funds(in thousands): '
Fund: Due From Due to ,
Other Other
Funds Funds ,
General Fund $709
Grant Fund (Special Revenue Fund) 422
Redevelopment Agency (Capital
Projects Fund 4,815 '
Emergency Fire Medical Fund
(Enterprise Fund) 287
Self Insurance Fund (internal Service ,
Fund) 4,815 -
Total IL524 IL524
31 ,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 11. PROPRIETARY FUND SEGMENT INFORMATION:
a. Segment Information for Enterprise Funds:
The City maintains five enterprise funds; Water Utility, Meadowlark Golf Course,
' Emerald Cove Housing, Emergency Fire Medical and Refuse. Certain key financial data
are (in thousands):
Emergency
Meadowlark Emerald Fire Refuse
Water Golf Course Cove Medical Collection Total
-Operating Revenues $15,749 $290 $597 $2,141 $6,138 $24,915
' Depreciation Expense 1,368 1 82 54 1,505
-Operating Transfers In -80 197 277
Operating Transfers - 25 - 200 250 475
Out
Operating Income (817) 252 239 205 10 (111)
Loss
Fixed Asset 871 - - 294 1,165
Acquisitions
Net Working Capital 14,308 2,052 1,868 1,150 430 19,808
' Total Assets 50,489 5,185 7,309 1,746 926 65,655
Long-Term 211 1,521 5,878 25 7,635
Obligations Net of
' Current Portion
Total Equity 47,963 1 3,587 1 1,203 1 1,365 1 430 1 54,548
b. Contributed Capital:
' The changes in Proprietary Fund Contributed Capital during the year were (in
thousands):
' Internal
Enterprise Service
Funds Funds Total
' Balance July 1, 1992 $40,855 $14,960 $55,815
Additions- Developer/City
Contribution - 1,821 1,821
' Balance June 30, 1993 HP&55 16 781 57 636
' 32
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS ,
JUNE 309 1993
11. PROPRIETARY FUND SEGMENT INFORMATION (CONTINUED): ,
b. Contributed Capital:
At year end the balances of Contributed Capital consisted of(in thousands):
Year- ,
End
Enterprise Funds Balance
Water Utility $37,989 '
Meadowlark Golf Course 1,267
Emerald Cove Housing 1,288
Emergency Fire Medical 311 ,
Total Enterprise Funds 40,855
Internal Service Fund
Equipment Replacement 16,781 '
Total 57 636
12. GENERAL LONG-TERM DEBT:
The changes in general long-term debt during the year were (in thousands): ,
July 1,1992 Additions Retirements June 30, '
1993
1970 Park Bonds $1,255 ($395) $860
Public Facilities Corporation Leasehold 2,000 (290) 1,710
Mortgage Bonds
Parking Authority Revenue Bonds 275 (160) 115 '
Civic Improvement Corporation 18,875 (18,875)
Certificates of Participation-1986
Civic Improvement Corporation 14,710 (14,710) '
Certificates of Participation-1969
Civic Improvement Corporation 21,895 21,895
Refunding Certificates of '
Participation(Civic Center)-1993
Civic Improvement Corporation 16,350 16,350
Refunding Certificates of
Participation(Police Administration '
Building)-1993
Compensated Absences 4,976 1,296 (955) 5,317
Advances from Other Funds 109,126 6,703 (1,256) 114,573 ,
1992 Public Financing Authority Revenue 33,495 33,495
Bonds
Notes Payable 1,121 (128) 993 '
Reservoir Hill Assessment Bonds 1,590 (195) 1,395
Arbitrage Rebates 234 (146) 88
187 657 46,�44 7 110 1 791
• 33 ,
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
12. GENERAL LONG-TERM DEBT (CONTINUED):
a. 1970 Park Bonds:
Year of Issuance 1970
Type of Debt General Obligation Bonds
Security Property Taxes
Original Issuance Amount $6,000,000
Interest Rates 6%
Interest Payment Dates March 1 st, September 1 st
Principal Payment Dates March 1 st
Purpose Financing of Central Park
improvements
Debt service requirements to maturity are (in thousands):
Year Ending Principal al Interest Total
June 30,
1994 $415 $52 $467
1995 445 27 472
Totals $860 $79 $939
1
b. Huntington Beach Public Facilities Corporation Leasehold Mortgage Bonds:
Year of Issuance 1972
Type of Debt Leasehold Mortgage Bonds
Security Lease on Civic Buildings
' Ori inal Issuance Amount $5,000,000
Interest Rates 5.0%to 5.9%
Interest Payment Dates March 1st and September 1st
' Principal Payment Dates September 1st
Purpose of Debt Finance Library construction
Debt service requirements to maturity are (in thousands):
Year Ending June Principal Interest Total
30,
1994 $305 $84 $389
1995 320 66 386
1996 340 46 386
' 1997 360 28 388
1998 385 10 395
Totals $1,710 $234 $1,944
' 34
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
12. GENERAL LONG-TERM DEBT (CONTINUED):
c. Parking Authority Revenue Bonds: '
Year of Issuance 1968
Type of Debt Revenue Bonds ,
Security Transfer from City's General
Fund
Original Issuance Amount $2,300,000
Interest Rates 5.25% '
Interest Payment Dates March 1st and September 1st
Principal Payment Dates September 1st
Purpose of Debt Finance parking improvements '
Debt service requirements to maturity are:
Year Ending June ,
30, 1994 Principal Interest Total
19�94 115 L3 118
d. Huntington Beach Civic Improvement Corporation Certificates of Participation-1986:
Year of Issuance 1986 '
Type of Debt Certificates of Participation
Security Lease on Civic Buildings
Original Issuance Amount $20 000,000 '
Interest Rates 4.75%to 7.9%
Interest Payment Dates August 1st and February 1st
Principal Payment Dates August 1st '
Purpose of Debt Refinance Public Facilities
Corporation bonds and construct
ca ital im rovements
During the year, the Civic Improvement Corporation defeased these certificates (see '
note 20).
e. Huntington Beach Civic Improvement Corporation Certificates of Participation-1989: '
Year of Issuance 1989
Type of Debt Certificates of Participation '
Security Lease on Civic Buildings
Original Issuance Amount $15,025,000
Interest Rates 5.9%to 7.0% '
Interest Payment Dates August 1st and February 1st
Principal Payment Dates August 1st
Purpose of Debt Construct capital improvements
During the year, the Civic Improvement Corporation defeased these certificates (see note 20).
33 ,
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
12. GENERAL LONG-TERM DEBT (CONTINUED):
f. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of
Participation (Civic Center Project):
Year of Issuance 1993
Type of Debt Refunding Certificates of
Participation
Security Lease on Civic Buildings
Ori inal Issuance Amount $21,895,000
Interest Rates 2.75%to 5.5%
Interest Payment Dates February 1st and August 1st
' Principal Payment Dates Au ust 1st
Purpose of Debt Refinance 1986 Civic
Improvement Corporation
Certificates of Participation
Year Ending June Principal Interest Total
' 30,
1994 $405 $1,144 $1,549
1995 525 1,133 1,658
' 1996 540 1,111 1,651
1997 560 1,088 1,648
' 1998 585 1,063 1,648
1999 610 1,036 1,646
2000 and after 18,670 10,728 29,398
' Totals $21,895 $17,303 $39,198
g. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of
Participation (Police Administration Project):
' Year of Issuance 1993
Type of Debt Refunding Certificates of
Participation
Security Lease on Civic Buildings
' Original Issuance Amount $16,350,000
Interest Rates 4.0%to 5.7%
Interest Payment Dates February 1st and August list
Principal Payment Dates August 1st
Purpose of Debt Refinance 1989 Civic
Improvements Corporation
' Certificates of Participation
' 36
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 309 1993
12. GENERAL LONG-TERM DEBT (CONTINUED): '
g. 1993 Huntington Beach Civic Improvement Corporation Refunding Certificates of
Participation (Police Administration Project):
Debt service requirements to maturity are (in thousands): ,
Year Ending June Principal Interest Total '
30,
1994 $330 $786 $1,116
1995 315 845 1,160
1996 330 832 1,162
1997 340 818 1,158
1998 355 803 1,158
1999 370 786 1,156
2000 and after 14,310 9,750 24,060
Totals $16,350 $14,620 $30,970 ,
h. Compensated Absences Payable: '
There is no fixed payment schedule to pay the governmental fund liability of$5,317,000 '
for compensated absences through June 30, 1993.
I. Long-Term Advances from Other Funds:
There is no fixed payment schedule for the Redevelopment Agency to pay the long-term ,
advances from the City and for the long-term advances from the Water Fund to the Pier
Rebuilding Fund at June 30, 1993 (in thousands):
General Fund:
Direct Advances from 1979 to 1987 $7,736
Direct Cash Advances from Proceeds of 1988 Public Financing 4,445
Authority Revenue Bonds Repaid to General Fund
Indirect Advances from 1987 to 1993 7,539
Land Sales from 1982 to 1992 32,837
Interest on Above Amounts 21.137 ,
Total Advances from General Fund 73,694
Special Revenue Funds: '
Paris Acquisition and Development Fund:
Land Sale in 1983 1,984
Deferred Development Fees 248
Interest on Above Amounts 896
Total Advances from Paris Acquisition and Development Fund 3.128
1
37 '
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 12. GENERAL LONG-TERM DEBT (CONTINUED):
' i. Long-Tenn Advances from Other Funds:
Sewer Fund:
' Advance in 1990/91 175
Deferred Development Fees 38
Interest on Above Amounts 104
Total Advances from Sewer Fund 317
Drainage Fund:
Advance in 1987/88 250
Deferred Development Fees 54
' Interest on Above Amounts 223
Total Advances from Drainage Fund 527
Gas Tax Fund:
Advance in 1988/89 500
Interest on Above Amounts 260
Total Gas Tax Fund 760
Total Special Revenue Funds 4.732
Capital Projects Funds:
Capital Improvement Fund:
Advance in 1989/90 200
Interest on Above Amounts 76
Total Capital Improvement Fund 276
Parking Authority
' Advance in 1991/92 100
Interest on Above Amounts 16
Total Parking Authority 116
Low-Income Housing Fund:
' Advance for Educational Revenue Augmentation Fund 517
Total Capital Projects Funds 909
Debt Service Funds:
' Public Financing Authority
Advances from 1991/92 30,758
Enterprise Funds:
Water Fund
Advances from 1986/87 to 1988/89 1,138
Interest from 1987 to 1993 777
Total Enterprise Funds 1.915
' Total Agency Advances 111,766
Non-Agency Advances
Advances from Water Fund to Pier Rebuilding Fund 2,500
Interest on Above Amounts 307
Total Non-Agency Advances 2.807
Total Advances from Other Funds 11�4 573
' 38
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
12. GENERAL LONG-TERM DEBT (CONTINUED): '
I. Long-Tenn Advances from Other Funds: ,
The changes in governmental fund long-term debt due from other funds for the fiscal
year ending June 30, 1993 (in thousands): ,
Advances July 1, 1992 $109,126
Advances Made 264
Advances Repaid (1,256) ,
Accrued Interest Reported in
Other Funds as Deferred
Revenue 6.439 '
Advances June 30, 1993 114 573
j. Public Financing Authority Revenue Bonds: '
Year of Issuance 1992
Type of Debt Revenue Bonds '
Security Loan Agreements with
Redevelopment Agency
Original Issuance Amount $33,495,000 ,
Interest Rates 4.0%to 7.0%
Interest Payment Dates May 1st and November!st
Principal Payment Dates May 1st
Purpose of Debt Provide funds to amend
agreements with Robert Mayer
Corporation. Remove
restrictive covenants on and to ,
refinance 1988 Public
Financing Authority Revenue
Bonds. '
Debt service requirements to maturity are (in thousands):
Year Ending June Principal Interest Total '
30,
1994 $385 $2,273 $2,658
1995 395 2,256 2,651
1996 430 2,234 2,664
1997 445 2,211 2,656
1998 480 2,184 2,664 '
1999 500 2,155 2,655
2000 530 2,124 2,654
2001-2025 30,330 30,610 60,940 ,
Totals $33,495 $46,047 $79,542
39 '
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 12. GENERAL LONG-TERM DEBT (CONTINUED):
' k. Miscellaneous Notes Payable:
Mortgages in Main/Pier Redevelopment Project Area
' Year of Issuance 1988
Type of Debt First trust deed mortgage
Security Real property
' Original Issuance Amount $881,000
Interest Rates 7.75% variable rate
Interest Payment Dates month)
Principal Payment Dates month)
Purpose of Debt Purchase of property
' Debt service requirements to maturity are (in thousands):
Year Ending June Principal Interest Total
30,
1994 $52 $58 $110
1995 52 54 106
' 1996 52 50 102
1997 52 47 99
1998 52 43 95
' 1999 and after 516 208 724
Totals $776 $460 $1,236
' Note Payable in Yorktown/Lake Project Area:
Year Debt Incurred 1991
Interest Rate 8.0%
Original Principal Amount $426,000
Current Principal Amount $217,000
Purpose of Debt Civic Center parking lot
Annually on July 1st
equal to 75% of
Repayment Terms previous year's
Yorktown/Lake tax
increment. No specific
repayment schedule.
1 40
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
12. GENERAL LONG-TERM DEBT (CONTINUED):
I. Reservoir Hill Assessment Bonds: '
Year of Issuance 1989
Type of Debt 1915 Improvement Act ,
Assessment Bonds
Security Property tax assessments
Ori inal Issuance Amount $1,653.905
Interest Rates 6.5%to 8.1% ,
Interest Payment Dates March 2nd and September 2nd
Principal Payment Dates September 2nd
Purpose of Debt Capital improvements
Debt service requirements to maturity are (in thousands):
Year Ending June Principal Interest Total '
30,
1994 $45 $108 $153 '
1995 45 104 149
1996 50 101 151
1997 55 97 152 ,
1998 55 92 147
1999 55 88 143 '
2000 60 84 144
2001-2011 1,030 467 895
Totals $1,395 $1,141 $1,934
1
m. Arbitrage Rebates: '
The Internal Revenue Code subjects governmental obligations to arbitrage restrictions.
If the yield on investments exceeds the interest costs, the City must rebate the amounts t
to the federal government every five years unless a rebate exception is made. As of
June 30, 1993, the following debt issues have arbitrage rebate amounts (in thousands):
1989 Public Financing Authority Certificates of
Participation Defeased $70
1988 Public Financing Authority Certificates of
Participation- Defeased 18 '
Total 188
1
41
r
CITY OF HUNTINGTON BEACH
r NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
1
1 13. PROPRIETARY FUND LONG-TERM DEBT:
Below is a summary of changes in proprietary fund long-term debt for the year (in
1 thousands):
1 July 1,1992 Additions Retirements June 30,1993
Meadowlark Golf Course Note $1,599 ($38) $1,561
1991 Emerald Cove Certificates of 5,718 (8) 5,710
Participation
r Note Payable,County of Orange 91 (91)
Compensated Absences 297 (36) 261
Advances from Other Funds 243 243
1 Claims Payable 7,968 11,811 (5,659) 14,120
Public Financing Authority Certificates 4,550 (1,025) 3,525
of Participation
Total $20,466 $11,811 ($6,857) $25,420
1
1 The above total is reported in the accompanying financial statements as follows (in
thousands):
1
Internal
1 Enterprise Service
Funds Funds Total
Advances from Other
1 Funds $243 $_ $243
Current Portion of
Long Term Debt 115 1,100 1,215
Long-Term Debt 7,156 2,425 9,581
1 Claims Payable 14,120 14,120
Compensated
Absences 236 25 261
1 Total IZ,.750 17 670 25 420
r
1
1
1 42
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 309 1993
13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED): ,
a. Meadowlark Golf Course Note Payable:
Year of Issuance 1974
Type of Debt Note payable ,
Security Revenues of Meadowlark Golf
Course
Original Issuance Amount $2,228,000
Interest Rates 7.0% '
Interest Payment Dates March 2nd and September 2nd
Principal Payment Dates February 28th
Purpose of Debt Purchase of golf course ,
Debt service requirements to maturity are (in thousands):
Year Ending Principal Interest Total
June 30, t
1994 $40 $110 $150
1995 43 107 150
1996 46 104 150 ,
1997 50 100 150
1998 53 97 150
1999 57 93 150 '
2000-2009 1,272 548 1,820
Totals $1,561 $1,159 $2,720
b. 1991 Emerald Cove Certificates of Participation (Redevelopment Agency): ,
Year of Issuance 1991
Type of Debt Certificate of Participation
Security Lease With City for Apartment '
Complex
Ori inal Issuance Amount $5,740,000
Interest Rates 4.8%to 7.0% ,
Interest Payment Dates March 1st and September 1st
Principal Payment Dates March 1st
Purpose of Debt Refinance 1984 Emerald Cove
Certificates of Participation
1
43 ,
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
' 13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED):
' Debt service requirements to maturity are (in thousands):
' Year Ending June Principal Interest Total
30,
1994 $75 $383 $458
1 1995 80 379 459
1996 80 375 455
' 1997 85 370 455
1998 90 365 455
1999 95 360 455
2000 100 354 454
2001 110 347 457
2002 115 340 455
2003 and after 4,880 4,525 9,405
Totals $5,710 $7,798 $13,508
c. Note Payable -County of Orange:
' Year of Issuance 1987
Type of Debt Note Payable
Security Pledge to budget repayment
1 Original Issuance Amount $409,140
Interest Rates 5.4%to 6.5%
Interest Payment Dates December 1st and June 1st
' Principal Payment Dates June 1st
Purpose of Debt Purchase fire communications
equipment
During the year the City paid the note in full.
d. Compensated Absences:
' There is no fixed repayment schedule to pay the compensated absences for proprietary
fund types of$261,000 at June 30, 1993.
e. Advances from Other Funds:
There is no fixed repayment schedule to repay the amounts advanced from the Park
1 Acquisition and Development Fund (a special revenue fund) to the Emerald Cove
Housing Fund (an enterprise fund) of$243,000 at June 30, 1993.
1
1 �
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
13. PROPRIETARY FUND LONG-TERM DEBT (CONTINUED):
f. Claims Payable: ,
There is no fixed repayment schedule for claims payable of $14,120,000 at June 30,
1993 (see note 9). The City will pay the claims when it reaches a final settlement. '
g. Public Financing Authority Certificates of Participation:
Year of Issuance 1989
Type of Debt Certificates of Participation
Security Lease With City on Equipment
Original Issuance Amount $5,510,000 ,
Interest Rates 6.75%to 6.95%
Interest Payment Dates February 1 st and August 1 st
Principal Payment Dates February 1st
Purpose of Debt Purchase Communications
System
Debt service requirements to maturity are (in thousands):
Year Ending June Principal Interest Total
30,
1994 $1,100 $243 $1,343
1995 1,170 168 1,338
1996 1,255 87 1,342
Totals $3,525 $498 $4,023 ,
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS:
a. Defeased Debt Outstanding: ,
At June 30, 1993, the following long-term, defeased debt was outstanding that is not
recorded in the financial statements (in thousands):
Public Facilities Corporation 1972
Leasehold Mortgage Bonds $4,410
Public Financing Authority 1988 '
Lease Revenue Bonds 26,315
Civic Improvement Corporation 1986
Certificates of Participation 18,600
Civic Improvement Corporation 1989
Certificates of Participation 14,710
Redevelopment Agency 1984
Emerald Cove Certificates of t
Participation 4,600
41 '
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
' 14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS:
' b. Community Facilities District 1990/91 Special Tax Bonds:
Year of Issuance 1990
' Type of Debt Community Facilities District
Assessment Bonds
Security Lease with City on equipment
Original Issuance Amount $2,400,000
Interest Rates 6,.75%to 6.95%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates February 1st
Purpose of Debt Public improvements and
police and fire services
' These bonds are excluded from the accompanying financial statements since the City is
not liable to make any payment on the bonds if taxes collected are not sufficient to pay
the debt service. Debt service requirements to maturity are (in thousands):
Year Ending June Principal Interest Total
30,
' 1994 $25 $177 $202
1995 30 176 206
1996 30 174 204
' 1997 30 172 202
1998 35 169 204
' 1999 40 167 207
2000 45 164 209
2001-2021 2,140 1,959 4,099
' Totals $2,375 $3,158 $5,533
' c. Other"No-Commitment" Debt:
The City is involved in various bond issues where the City or Redevelopment Agency
' issued bonds to assist in the financing of residential developments. A trustee holds all
funds and payment cannot be made from any other source than the mortgages
received.
1
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
14. LONG-TERM DEBT NOT RECORDED IN FINANCIAL STATEMENTS
(CONTINUED):
c. Other"No-Commitment" Debt: '
These bond issues are: ,
Original Issue
Bond Issue Amount
Five Points Senior Project Multi-
Family Housing Revenue
Bonds- Series A- 1991 $9,500,000
Seabridge Villas Project Multi-
Family Housing Revenue
Bonds- Series A- 1985 25,000,000
Rivermeadows Variable Rate
Demand Bonds-1985 Series A 10,000,000
Huntington Breakers Mortgage
Revenue Bonds Refunding
Issue- 1989 16,000,000 '
Huntington Breakers Mortgage
Revenue Bonds-Original
Issue- 1983 16,000,000
Warner Avenue Apartment Project
Multi-Family Housing Revenue
Bonds- October, 1985 8,165,000 '
1983 Series A Mortgage Revenue
Bonds 20,000,000
1984 Series A Mortgage Revenue '
Bonds 20,000,000
15. FIXED ASSETS AND CAPITAL LEASES: '
a. Changes in Fixed Assets: '
The changes in the general fixed assets account group for the year are (in thousands):
Balance,July 1, Additions D*)osftions Balance,
1992 June 30, ,
1993
Land $68,409 $1,216 ($2,820) $66,805
Buildings 50,353 253 50,606 ,
Other 1,949 648 2,597
Construction in Process 1,183 5,678 (372) 6,489
Total 1 1 894 7 7 E3.192 1 s497
47 ,
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 15. FIXED ASSETS AND CAPITAL LEASES (CONTINUED):
a. Changes in Fixed Assets:
The changes in proprietary fund fixed assets for the year are (in thousands):
ENTERPRISE Balance,July 1,1992 Additions Dispositions Balance,June 30,
' FUNDS: 19W
Land $4,731 $1 $4,732
Buildings 7,052 17 (259) 6,810
Construction in Process 35 35
Machinery and 52,262 1,604 (241) 53,625
Equipment
' Total Cost 64,045 1,657 200 65,202
Less Accumulated (26,552) (28,028)
Depreciation
' Net Book Value 12Z.,493 $37,174
Enterprise Funds
' INTERNAL Balance,July 1,1992 Additions Dispositions Balance,June 30,
SERVICE FUNDS: 1993
1 Machinery and 29,433 3,475 (1,400) 31,508
Equipment
Less Accumulated (16,561) (2,793) 981 (18,373)
Depreciation
' Net Book Value Internal 112,872 682 $13,135
Service Funds
b: Leases
' The City has a lease agreement containing a bargain purchase option to finance a
helicopter purchase. The lease is a capital lease. The City recorded the helicopter as
' an asset in the Equipment Replacement Fund (an internal service fund) at the present
value ($986,000) of the future minimum lease payments at the lease's inception.
1 48
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
15. FIXED ASSETS AND CAPITAL LEASES (CONTINUED): '
b: Leases
The equipment is carried in the accompanying financial statements as follows:
Machinery and Equipment $986 '
Less Accumulated Depreciation (99
Carrying Value IL87
The future minimum lease payments under this capital lease are (in thousands): '
Year Endina June 30, Amount
1994 $234
1995 234
1996 234
1997 234 '
1998 117
Total minimum lease 1,053
payments '
Less interest (153)
Present value of future 900
minimum lease payments
This amount is recorded as a liability on the balance sheet of the Equipment
Replacement Fund.
16. RESERVES AND DESIGNATIONS OF FUND EQUITY: '
The City maintains reserves and designations of fund equity in its governmental funds.
Reserves are amounts that cannot be appropriated in future periods or which are legally ,
set aside for a specific use. Designations are amounts that the City has made tentative
plans to use in a future period. The City's reserves and designations at year end are (in
thousands): '
General Special Debt Capital Trust and Total
Fund Revenue service Projects Agency
Funds Funds Funds Funds '
Reservations:
Encumbrances $710 $3,668 $9,043 $13,421
Advances to Other Funds 19,725 925 30,758 817 52,225
Capital Projects 421 6,795 7,216 '
Debt Service 16,273 16,273
Pension Payments 75 75
Land Held for Resale 15.468 15,468
Inventory 388 388
TOTAL RESERVED FUND EQUITY 20,823 5,014 47,031 32,123 75 105,066
Designated for Future Expenditures 5,415 2,675 8,090
TOTAL RESERVED AND DESIGNATED FUND $20,823 $10,429 $47,031 $34,798 $75 $113.156 '
EQUITY
49
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
17. COMMITMENTS AND CONTINGENCIES:
1 a. Legal Actions:
There are legal actions pending against the City resulting from normal operations. In the
' opinion of management and the City Attorney, the financial resolution of these actions
should not have a significant impact on these financial statements.
b. Disposition and Development Agreement-Robert L. Mayer Corporation:
In August, 1988, the Redevelopment Agency, the City and Robert L. Mayer Corporation
(Mayer) entered into a disposition and development agreement for the development of
hotels, residential and commercial parcels in the Main/Pier project area. Mayer agreed
to loan the Agency money to relocate the tenants of a mobile home park. The Agency
would repay the amounts by pledging a portion of the tax increment and transient
' occupancy tax revenue generated by the projects. The interest rate on the loan was
10% per annum. The Agency also would pledge additional tax increment and transient
occupancy tax revenue as an additional incentive.
The Redevelopment Agency paid during the year $263,000 to Dai-Ichi Kangyo Bank
representing final payment on the agreement with Robert Mayer Corporation originally
made in 1988 and amended various times until 1992.
c. Owner Participation Agreement-Abdelmuti:
' In 1991, in order to assist a private business in the demolition and the construction of a
new building, the Redevelopment Agency agreed to subsidize the loss of income up to
$1,530,000, make public improvements to the area totaling $250,000 and to loan the
business $3,500,000 for 15 years at 7% interest to make improvements to a building in
the Main/Pier Redevelopment Project Area. At June 30. 1993 the following amounts had
been spent (in thousands):
Public Improvements (grant) $28
Building Improvements (loan) 1,302
Other Expenditures(Grant) 146
1 476
' Accrued interest on the loans totaled $12,434 at year-end. Payments are not due until a
certificate of occupancy is issued.
d. Five-Points Seniors Housing:
In 1991 the Redevelopment Agency agreed to loan $500,000 over 5 years in $100,000
increments beginning in 1993/94 to a private partnership to facilitate affordable senior housing.
1
1 50
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS ,
JUNE 309 1993
17. COMMITMENTS AND CONTINGENCIES (CONTINUED):
e. Driftwood Mobilehome Acquisition and Relocation Agreement: '
In 1988 the Redevelopment Agency made an agreement with Robert Mayer Corporation
and a private mobilehomeowers association to purchase and provide relocation benefits ,
for up to 10 mobilehomes per year at an agreed value if the owners are unable to sell
their homes on the open market for a minimum of 90 days. To qualify for the buyout,
the owners must apply by September 26th of each year, meet the 90 day requirement
and submit an offer letter. If greater than 10 owners qualify, a lottery is held. At year-
end there were 153 remaining mobilehomes on the site. Each November 1st, the agreed
value for each mobilehome type is adjusted by a formula in the agreement. On
November 1, 1992, (the last adjustment date) the average adjusted value was $73,000 '
per mobilehome. After each home is purchased, the Agency markets the coaches for
resale at a value substantially less than the purchase price. The Agency's goal is to
clear the site to allow for commercial and residential development. During the year the ,
Agency spent$765,000 for purchase and relocation benefits.
f. Disposition and Development Agreement-Huntington Beach Auto Dealer's
Association: '
During the year the Redevelopment Agency entered into an agreement with the
Huntington Beach Auto Dealer's Association to construct a large electronic reader board
in the Huntington Center Project Area. The sign may increase auto sales (and City sales
tax revenues). The cost of the sign is as follows(in thousands):
Agency Grant $100
Increased Sales Taxes 261
Total Paid by the Agency 361
If the City's share of the sales tax revenue does not increase by a combined $261,000
over the next five years, the Auto Dealers Association will pay the Agency the
difference.
18. JOINT VENTURES: r
a. Big Independent Cities Excess Pool Joint Authority:
In 1988, the City and the cities of Pomona, San Bernardino, Santa Ana and Oxnard
formed the Bic Independent Cities Excess Pool Joint Authority (BICEP) to finance a
claims payment pool for certain liability claims in excess of$1 million.
BICEP's governing board has one representative from each city. The representative
may be a member or designate of the City Council. Any changes to the board must be '
approved by the current board members. Each participating City pays an insurance
premium to BICEP that is used to fund the operating and debt service expenditures.
The participants' share of the assets, liabilities and fund equity are as follows: '
s i '
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
1 18. JOINT VENTURES (CONTINUED):
a. Big Independent Cities Excess Pool Joint Authority:
Huntington Beach 21.43%
Oxnard 15.63%
San Bernardino 19.09%
Santa Ana 30.27%
Pomona 13.59%
Total 100�00%
Long-term debt information is as follows:
Year of Issuance 1988
Type of Debt Revenue Bonds
Security A reements with cities
' Original Issuance Amount $15,055,000
Interest Rates 6.5%to 8.25%
Debt service requirements to maturity are (in thousands):
' Year Ending June Principal Interest Total
30,
' 1994 $450 $1,120 $1,570
1995 485 1,087 1,572
1996 520 1,050 1,570
1 1997 560 1,010 1,570
1998 620 967 1,587
1999 670 918 1,588
2000-2009 10,485 8,639 19,124
Totals $13,790 $14,791 $28,581
1 The June 30 1993 condensed unaudited financial information for BICEP is as follows
(in thousands):
' Balance Sheet: BICEP Total City Share
Assets $17,380 $3,725
' Liabilities 17,399 3,729
Accumulated Deficit 19 4
Revenue and Expense:
' Revenues 4,106 880
Expenses 3,933 843
Excess of Revenue over Expense 174 37
1 52
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS ,
JUNE 309 1993
18. JOINT VENTURES (CONTINUED):
a. Big Independent Cities Excess Pool Joint Authority: '
The activity of BICEP is recorded in the Self-Insurance Fund (an internal service fund).
The City's equity interest is reported as an asset. Changes during the year are reported ,
as non-operating revenue or expense. Separate audited financial statements for the
fiscal year are available.
b. Orange County-City Hazardous Materials Emergency Response Authority:
The City also participates in the Orange County-City Hazardous Materials Emergency
Response Authority(Hazmat Authority). The Hazmat Authority coordinates responses to
hazardous material emergencies to provide an equitable sharing of risks associated with
such emergencies.
The Hazmat Authority consists of the cities of Huntington Beach, Santa Ana, Newport '
Beach, Anaheim and the County of Orange. The board of directors consists of a voting
member and an alternate appointed by the governing body of each member agency. '
Each year the board of directors adopts a budget and bills the associated costs to each
member agency. Below are the participants shares of the assets, liabilities and fund
equities: ,
City of Anaheim 25%
County of Orange 25%
City of Santa Ana 25% '
City of Huntington Beach 12.5%
City of Newport Beach 12.5%
Total 10� '
The June 30, 1993 financial information for the Hazmat Authority is as follows (in
thousands):
Hazmat
Balance Sheet Total Citv Total
Assets $192 $24
Liabilities 100 13 '
Equity 92 11
Statement of Revenue and Expense
Revenues 446 56 '
Expenses 521 65
Excess of Revenue over Expense 5 9
Separate audited financial statements are available for this agency. '
13 '
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS
JUNE 30 , 1993
18. JOINT VENTURES (CONTINUED):
1 c.West Orange County Water Board:
The City is involved in a joint-venture with the cities of Westminster, Seal Beach and
Garden Grove formed in 1955 to provide for the operation and maintenance of water
transportation. WOCWB is governed by a five member board. The City appoints two
members while each other participant appoints one member each. Thus no participant
appoints a voting majority. The City acts as fiscal agent for WOCWB and retains
custody of all assets. Members must either be a member of a City Council or employee
of a participant. The City records its share of WOCWB's assets as an asset of the Water
Fund and records the other participants' shares as deposits. At year end, the City
' recorded the investment in WOCWB as part of the Water Fund's cash and investments.
WOCWB has no long-term debt and no plant, property and equipment.
Each participants'share of the assets, liabilities and fund equities are:
Cit of Huntington Beach 52.5%
City of Garden Grove 7.8%
Cit of Seal Beach 14.3%
-City of Westminster 25.4%
The June 30, 1993 unaudited, condensed financial information for WOCWB is (in
' thousands):
WOCWB
Balance Sheet TOTAL City Total
' Assets $764 401
Liabilities 189 99
-Equity 575 302
Revenues 3,773 1,980
-Expenses 3,622 1,901
' Excess of Revenue over Expense 151 79
Separate audited financial statements are available for this agency.
1 d. Central Net Operations Authority:
In July, 1992 the cities of Huntington Beach, Fountain Valley, Newport Beach,
Westminster and the County of Orange formed the Central Net Operations Authority
(Central Net) as a training and dispatch joint-powers entity.
Central Net is governed by a four member board consisting of the Chief Executive
Officer of each entity and, as an alternate, the Fire Chief or designee. Each year the
board adopts a budget and each entity pays a portion of the costs. For 1992/93, the
allocated budget is determined by a formula based on the overall percentage of
' assessed valuation for each entity. For 1993/94 and beyond, each entity's share is
based on the number of recorded incidents during the preceding calendar year and the
number of authorized safety personnel in each entity. The breakdown for 1992/93 was:
1 54
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS '
JUNE 30 , 1993
18. JOINT VENTURES (CONTINUED): '
d. Central Net Operations Authority:
Aaency Percent '
Huntington Beach 39.6%
Newport Beach 39.2%
Fountain Valley 10.8%
Westminster 10.4%
Total 10�/0
The City will receive title to all communications equipment upon Central Net's
termination that occurs when two or more entities withdrawl. The City's equity interest is
recorded in the General Fixed Assets Account Group.
Condensed, summary financial information for the Central Net Authority for the fiscal '
year ending June 30, 1993 was (dollar amounts in thousands):
Central Net '
Balance Sheet Total City Total
Assets $306 $121
Liabilities 46 16 '
Equity 260 105
Statement of Revenue and Expense
Revenues 1,551 614 '
Expenses 1,528 605
Excess of Revenue over Expense 23 9
The financial activity for Central Net Operations Authority is recorded in an Agency Fund.
e. Public Cable Television Authority:
In 1971 the Public Cable Television Authority (PCTA) was formed to oversee the cable '
television franchise agreement for the cities of Huntington Beach, Westminster, Stanton
and Fountain Valley. PCTA enters into one franchise agreement with a cable operator
and then enters into agreements with the individual cities. PCTA collects all franchise ,
and utility tax revenue and remits them to the individual cities. PCTA is governed by a
four member body consisting of one councilmember from each city. Each participants
share of the PCTA are: '
City of Huntington Beach 62.6%
City of Stanton 5.9%
City of Fountain Valley 15.9% '
City of Westminster 15.6%
Total 100.0%
The City's equity interest is recorded in the general fixed assets account group. ,
The June 30, 1993 financial information for PCTA is (in thousands):
ss '
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
' 18. JOINT VENTURES (CONTINUED):
PCTA
Balance Sheet TOTAL City Total
' Assets $855 $534
Liabilities 3 2
Equity 852 532
Revenues 1,705 1,068
Expenses 45 28
' Excess of Revenue over Expense 1,660 1,040
19. OTHER INFORMATION:
a. Expenditures Exceeding Appropriations
' Expenditures exceeded appropriations at the departmental level in the funds shown as
follows (in thousands):
' Amount
Expenditures
Exceed
' S ecial Revenue Funds ADorooriations
Gas Tax Fund- Public Works $8
Public Communications-City 12
Administrator
Transportation - Public Works 57
Grants- Police 162
Grants- Operating Transfers Out 8
Air Quality- City Administrator 3
Debt Service Funds
Redevelopment Agency- Principal 295
' Reservoir Hill- Debt Service 154
b. Fund and Retained Earnings Deficits
' The following governmental funds had accumulated unreserved, undesignated deficits at
year-end:
Grant Fund (Special Revenue Fund $19
Redevelopment Agency Capital 1,655
Projects Fund
' This Grant Fund deficit will be eliminated by future revenues from other governmental
agencies. The deficit in the Redevelopment Agency Capital Projects Fund results from
accruals for settlements and construction activity that will not take place for several
' years.
' 56
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS ,
JUNE 309 1993
19. OTHER INFORMATION (CONTINUED):
b. Fund and Retained Earnings Deficits
The following proprietary funds had deficit retained earnings at year-end (in thousands): '
Emerald Cove Housing $85
Fund (Enterprise)
Self-Insurance Fund (Internal Service) 3,498
Equipment Replacement (Internal
Service) 1.730 ,
Total 11J3.13
The deficit in the Emerald Cove Fund will be eliminated by increased user charges. The
deficit in the Equipment Replacement Fund results from the method the City uses to
record contributed capital. Depreciation expense on assets contributed to the fund is
closed out to retained earnings. When the assets are disposed of, no entry is made to
contributed capital. A funding plan will be developed in the next two years to eliminate
the deficit in the Self-Insurance Fund. This deficit is primarily due to potential claims '
that are long-term in nature.
c. Supplemental Appropriations: '
During the year, various supplemental appropriations were necessary for items not
originally budgeted. None of these supplemental appropriations caused any fund deficits '
other than the deficit for the Grant Fund noted in 19(b).
d. Redevelopment Agency Non-Departmental Expenditure:
During the year the Agency wrote down Land Held for Resale in the Capital Projects '
Fund by $ 3,867,000 to account for reduced value. The reduction is recorded as a non-
departmental expense in Redevelopment Agency Capital Projects Fund. Also included ,
in the total non-departmental expenditures is $4,815,000 for estimated liability
expenditures.
e. Issuance Costs Recorded as Non-Departmental Expenditures: '
Included in the Non-Departmental expenditures for the Civic Improvement Corporation
Debt Service Fund is$2,474,000 of bond issuance costs. ,
17 ,
CITY OF HUNTINGTON BEACH
' NOTES TO FINANCIAL STATEMENTS
JUNE 309 1993
20. DEFEASANCE OF LONG-TERM DEBT:
a. 1986 Civic Improvement Corporation Certificates of Participation:
' On February 1, 1993 the Civic Improvement Corporation issued $21,895,000 of
certificates to "advance refund" the 1986 Civic Improvement Corporation Certificates of
' Participation. $18,708,000 of the proceeds plus $1,753,000 of existing cash were
deposited into an escrow account consisting of guaranteed federal securities with interest
yields sufficient to fund the debt service on the original certificates to maturity.
Below is an analysis of the economic gain of the transaction and the difference in cash
flows between the old and new certificates (in thousands):
' Economic Gain
Present value of debt service on
original certificates discounted at
effective interest rate target of 6.3% $21,544
Present value of debt service on new
certificates discounted at effective
' interest rate of 6.3% (20,407)
Cash paid for defeasance u
Economic Gain 1 049
' Difference of Cash Flows:
Cash flows of debt service on existing
certificates $41,212
Cash flows of debt service on new
certificates 3( 9.285)
Difference in cash flows $1,927
The original certificates were defeased to take advantage of lower interest rates. The
rates on the original certificates varied between 4.75% and 7.9% while the interest rates
on the new certificates vary between 2.5% and 5.8%.
1 b.1989 Civic Improvement Corporation Certificates of Participation:
On March 1, 1993 the City issued $16,350,000 of certificates to "advance-refund" the
1989 Civic Improvement Corporation Certificates of Participation. $14,159,000 of the
proceeds plus $1,231,000 of existing cash were deposited into an escrow account
consisting of guaranteed federal securities with interest yields sufficient to fund all of the
Irequired debt service on the original certificates.
58
1
CITY OF HUNTINGTON BEACH
NOTES TO FINANCIAL STATEMENTS ,
JUNE 30 , 1993
20. DEFEASANCE OF LONG-TERM DEBT (CONTINUED):
b.1989 Civic Improvement Corporation Certificates of Participation:
Economic Gain
Present value of debt service on
original certificates discounted at ,
effective interest rate target of 6.3% $15,900
Present value of debt service on new
certificates discounted at effective '
interest rate of 6.3% (15,334)
Cash paid for defeasance
Economic Gain 502 ,
Difference of Cash Flows:
Cash flows of debt service on existing
certificates $32,091
Cash flows of debt service on new '
certificates (31,033)
Difference in cash flows 1 058
21. PRIOR PERIOD ADJUSTMENTS: '
In prior years the City did not properly accrue certain taxes and franchise fees. Below is
a restatement of the beginning fund balance of the General Fund and the Public
Communications Fund, a special revenue fund (in thousands):
Public
General Communications '
Fund Fund
Fund Balance as Previously Reported $30,654 $365
Restatement to Include Franchise and Tax '
Revenue 907 172
Fund Balance as Restated $31,561 537
In prior years the City over-valued land held for resale in the Capital Projects Fund of the ,
Redevelopment Agency. Below is a restatement of the beginning fund balance of the
Redevelopment Agency's Capital Projects Fund (in thousands):
Redevelopment Agency Capital Projects Fund Balance as $34,246
Previously Reported
Restatement Due to over-valuation of land (4,022)
Fund Balance as Restated 30,2�24 ,
In prior years, the City overstated the bonds outstanding for the Reservior Hill
Assessment District in the General Long-Term Debt Account Group. Below is a
restatement of the beginning balance of the Reservior Hill Bonds outstanding in the
General Long-Term Debt Account Group (in thousands):
Beginning Balance $1,647
Restatement 5577)
Reservoir Hill Bonds as Restated 1 590
39
' FINANCIAL STATEMENTS OF INDIVIDUAL FUNDS AND ACCOUNT
GROUPS
1
1
1
1
The GENERAL FUND accounts for activity not required to be
accounted for in another fund
1
1
City of Huntington Beach '
General Fund
Balance Sheet
June 30, 1993 With Comparative Totals for June 30,1992 ,
(In Thousands)
ASSETS AND OTHER DEBITS 1993 1992 '
Cash and Investments $6,123 $9,959
Taxes Receivable 4,028 3,717
Other Receivables 1,050 358
Due from Other Funds 709 404
Inventory 388 322
Advances to Other Funds 73,694 69,357
Deposits and Other Assets 256 163
TOTAL ASSETS AND OTHER DEBITS $86,248 $84,280 '
LIABILITIES,FUND EQUITY AND OTHER CREDITS '
LIABILITIES:
Accounts Payable $802 $1,489
Other Accrued Liabilities 2,298 1,785
Deposits 204 938 '
Deferred Revenue 53,969 49,414
TOTAL LIABILIITES 57,273 53,626
FUND EQUITY AND OTHER CREDITS
Reserved for Inventory 388 322
Reserved for Encumbrances 710 1,916
Reserved for Long-Terre Receivables 19,725 19,943
Total Reserved Fund Equity 20,823 22,181
Unreserved: ,
Designated for Future Expenditures 1,591
Undesignated 8,152 6,882
Total Unreserved Fund Equity 8,152 8,473
TOTAL FUND EQUITY 28,975 30,654
TOTAL LIABILITIES AND FUND EQUITY $86,248 $84,280
1
BD ,
' CITY OF HUNTINGTON BEACH
GENERAL FUND
' STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
' (IN THOUSANDS)
Variance
Favorable
REVENUES: Budget Actual (Unfavorable) 1992
' Property Taxes $29,773 $27,899 ($1,874) $29,410
Other Taxes 36,142 33,434 (2,708) 34,016
Licenses and Permits 3,688 3,642 (46) 3,451
Fines,Forfeitures and Penalties 1,650 1,354 (296) 1,324
From Use of Money and Property 6,289 4,657 (1,632) 8,819
From Other Agencies 11,544 11,737 193 13,373
Charges for Current Service 8,158 6,313 (1,845) 4,602
Other 698 859 161 678
' TOTAL REVENUES 97,942 89,895 (8,047) 95,673
EXPENDITURES
Current:
City Council 262 213 49 297
' City Administrator 1,003 913 90 1,176
City Treasurer 773 709 64 727
City Attorney 1,812 1,807 5 1,563
City Clerk 484 449 35 402
' Administrative Services 4,276 4,108 168 3,990
Community Development 3,896 3,499 397 4,096
Fire 17,067 16,505 562 13,173
Police 31,629 31,019 610 29,650
Community Services 6,944 6,936 8 6,491
' Library Services 2,824 2,703 121 2,675
Public Works 16,571 14,893 1,678 15,122
Non-Departmental 7,919 7,709 210 7,659
Capital Outlay 4,276
Debt Service
Interest 225 187 38 250
TOTAL EXPENDITURES 95,685 91,650 4,035 91,547
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES 2,257 (1,755) (4,012) 4,126
OTHER FINANCING SOURCES(USES)
Operating Transfers In 3,093 3,093 1,995
Operating Transfers Out (3,217) (3,217) (3,312)
TOTAL OTHER FINANCING SOURCES(USES) (124) (124) (1,317)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES 2,133 (1,879) (4,012) 2,809
FUND BALANCE,BEGINNING OF YEAR 30,65.4 30,654 27,062
Prior Period Adjustments 907 907
FUND BALANCE AS RESTATED 30,654 31,561 907 27,062
' RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers In 283 283 940
Residual Equity Transfers Out (990) (990) (157)
TOTAL RESIDUAL EQUITY TRANSFERS (707) (707) 783
' FUND BALANCE•END OF YEAR $32.080 $28.975 (E3,105) $30,654
1
1
' 61
' SPECIAL REVENUE FUNDS account for revenues and
expenditures legally restricted to a specific purpose.
The Gas Tax Fund accounts for monies allocated under the Streets and
' Highways Code of California. Expenditures may be made for any
street-related purpose allowed under the code.
The Sewer Fund accounts for fees received from developers to
construct and maintain sewer facilities.
' The Drainage Fund accounts for fees received from developers to
construct and maintain the City's drainage system.
The Public Communications Fund accounts for revenues from cable
' television franchises granted within the City's limits spent on
community-oriented television.
' The Grants Fund accounts for federal, state and county grants not
accounted for in other funds. The granting agency restricts expenditures
to appropriate items.
' The Park Acquisition f r fees received
and Development Fund accounts o
' from developers to develop and maintain the City's park system.
The Narcotics Forfeiture Fund accounts for monies received from the
' State of California for special law enforcement expenditures.
The Flood Control Fund accounts for monies restricted to flood control
' purposes.
The Transportation Fund accounts for monies received from the
countywide 1/2 cent sales tax and other specific sources to be spent on
transportation-related expenditures.
' The Air Quality Fund accounts for revenues from the local agencies
used to improve local air quality.
CITY OF HUNTINGTON BEACH ,
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET ,
JUNE 30,1993 WITH COMPARATIVE TOTALS FOR JUNE 30,1992
(IN THOUSANDS)
Public '
ASSETS AND OTHER DEBITS Gas Tex Sewer Drainage Communications Grants
Cash and Investments $3,730 $4,304 $2,663 $305
Taxes Receivable 197
Other Receivables 806 435
Advances to Other Funds 760 317 527 '
Deposits and Other Assets
TOTAL ASSETS AND OTHER DEBITS $5,296 $4,621 $3,190 $502 $435
LIABILITIES,FUND EQUITY AND OTHER CREDITS ,
LIABILITIES:
Accounts Payable $2 $4 $16
Other Accrued Liabilities 15 3 6 11 16 ,
Deposits 14
Due to Other Funds 422
Deferred Revenue 261 141 276 '
TOTAL LIABILITTES 292 148 282 11 454
FUND EQUITY
Reserved Equity
Reserved for Encumbrances 2,273 173 747 8
Reserved for Long-Term Receivables 500 175 250
Reserved for Capital Projects 25 396
Total Reserved Fund Equity 2,773 373 1,393 8
Unreserved Equity
Designated for Future Expenditures 2,231 635 1,515 84 ,
Undesignated 3,465 399 (19)
Total Unreserved Fund Equity 2,231 4,100 1,515 483 (19)
TOTAL FUND EQUITY 5,004 4,473 2,908 491 (19)
TOTAL LIABILITIES AND FUND EQUITY $5,296 $4,621 $3,190 $502 $435 ,
62 '
' Perk Acquisition Narcotics
and Development Forfeiture Flood Control Transportation Air Quality Total 1993 Total 1992
$522 $1,295 $76 $813 $37 $13,745 $13,727
197
32 1 1,274 1,370
3,128 4,732 4,410
2,878 2,878
$6,560 $1,295 $76 $814 $37 $22,826 $19,507
1
15 61 5 103 494
' 30 14 2 97 61
14 14
422 332
6,006 6,684 3,485
' 6,021 30 75 7 7,320 4,386
122 10 330 5 3,668 1,463
' 925 925
421 421
122 10 330 5 5,014 2,809
' 516 409 25 5,415 5,807
417 739 76 5,077 6 505
417 1,255 76 409 25 10,492 12 312
539 1,265 76 739 30 15,506 15,121
$6,560 $1,295 $76 $814 $37 $22,826 $19,507
63
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES(DEFICITS) ,
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1M
(IN THOUSANDS)
Public ,
REVENUES: Gas Tax Sewer Drainage Communications Grants
Other Taxes '
Licenses and Permits 36 132
From Use of Money and Property 287 344 218 28 425
From Other Agencies 3,950 7 422 2,100
Charges for Current Service 15 '
Other 2 2
TOTAL REVENUES 4,239 402 350 452 2,525
EXPENDITURES
Current: ,
City Administrator 404 2
Community Development 413
Police 327
Economic Development 436
Community Services
Library Services 72
Public Works 687 107 147 13
Non-Departmental 17 ,
Capital Outlay 3,161 543 617 9 1,585
TOTAL EXPENDITURES 3,848 650 764 413 2,865
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES 391 (248) (414) 39 (340)
OTHER FINANCING SOURCES(USES)
Operating Transfers Out (1,600) (85)
EXCESS OF REVENUE OVER (UNDER)
EXPENDITURES AND OTHER USES (1,209) (248) (414) (46) (340) '
FUND BALANCES(DEFICITS),BEGINNING OF YEAR 4,432 4,921 3,322 365 89
Prior Period Adjustments 172
FUND BALANCES(DEFICITS)AS RESTATED 4,432 4,921 3,322 537 89
RESIDUAL EQUITY TRANSFERS
Residual Equity Transfers In 1,781 398
Residual Equity Transfers Out (200) (166)
TOTAL RESIDUAL EQUITY TRANSFERS 1,781 (200) 232
FUND BALANCES(DEFICITS)-END OF YEAR $5,004 $4,473 $2,908 $491 ($19)
r
64 ,
' Perk Acquisition Narcotics
and Development Forfeiture Flood Control Transportation Air Quality Told 19113 Total 1992
$2.545 $2,545 $653
863 156 1,187 785
36 101 6 97 1 1,543 1,886
121 782 215 7,597 8,475
' 15
3 7 65
1,020 883 6 2,801 216 12,894 11,864
' 161 567 393
413
1,009 1,336 767
436 752
252 252 106
72 68
767 1,721 746
17 1,612
782 137 917 3 7,754 7,231
1,034 1,146 1,684 164 12,568 11,675
(14) (263) 6 1,117 52 326 189
' (100) (1,785) (1,921)
(14) (363) 6 1,117 52 (1,459) (1,732)
548 1,633 70 (237) (22) 15,121 16.749
172
' 548 1,633 70 (237) (22) 15,293 16,749
5 3 2,187 700
(8) (141) (515) (596)
' 5 (5) (141) 1,672 104
$539 $1.265 $76 $739 $30 $15.506 $15.121
CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES, '
BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(in Thousands)
GAS TAX
Variance '
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Morley and Property $125 $287 $162
From Other Agencies 3,985 3,950 (35) ,
Other 2 2
TOTAL REVENUES 4,110 4,239 129
EXPENDITURES
Public Works 679 687 (8)
Capital Outlay 8,785 3,161 5,624 ,
TOTAL EXPENDITURES 9,464 3,B48 5,616
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (5,354) 391 5,745
OTHER FINANCING USES '
Operating Transfers Out (1,600) (1,600)
EXCESS OF REVENUE AND OTHER SOURCES OVER ,
(UNDER)EXPENDITURES AND OTHER USES (6,954) (1,209) 5,745
FUND BALANCE,BEGINNING OF YEAR 4,432 4,432
Residual Equity Transfers In 1,781 1,781
FUND BALANCE-END OF YEAR ($741) $5.004 E i 745 ,
SEWER
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Licenses and Permits $35 $36 $1
From Use of Money and Property 260 344 84
From Other Agencies 7 7
Charges for Current Service 15 15
TOTAL REVENUES 295 402 107 ,
EXPENDITURES
Current:
Public Works 170 107 63
Capital Outlay 1,094 543 551 ,
TOTAL EXPENDITURES 1,264 650 614
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (969) (248) 721
FUND BALANCE,BEGINNING OF YEAR 4,921 4,921
Residual Equity Transfers Out (200) (200)
FUND BALANCE-END OF YEAR $3,752 S4,473 5721
66 ,
' CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
' COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(In Thousands)
DRAINAGE
Variance
Favorable
REVENUES: Budget Actual (unlayorable)
Licenses and Permits $170 $132 ($38)
' From Use of Money and Property 150 218 68
Other 5 (5)
TOTAL REVENUES 325 350 25
EXPENDITURES
' Current:
Public Works 150 147 3
Capital Outlay 2,637 617 2,020
TOTAL EXPENDITURES 2,787 764 2,023
' EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (2,462) (414) 2,048
FUND BALANCE,BEGINNING OF YEAR 3,322 3,322
FUND BALANCE-END OF YEAR $860 $2,908 $2,048
PUBLIC COMMUNICATIONS
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
' From Use of Money and Property $20 $28 $8
From Other Agencies 410 422 12
Other 1 2 1
TOTAL REVENUES 431 452 21
' EXPENDITURES
Current:
City Administrator 392 404 (12)
Capital Outlay 14 9 5
TOTAL EXPENDITURES 406 413 (7)
EXCESS OF REVENUES OVER EXPENDITURES 25 39 14
OTHER FINANCING USES
Operating Transfers Out (85) (85)
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (60) (46) 14
' FUND BALANCE,BEGINNING OF YEAR 365 365
Prior Period Adjustments 172 172
FUND BALANCE AS RESTATED 537 537
FUND BALANCE-END OF YEAR _ U77 $491 E14
67
CITY OF HUNTINGTON BEACH '
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES '
BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(In Thousands) '
GRANTS
Variance '
Favorable
REVENUES: Budget Actual (UnfawraWe)
From Use of Money and Property $354 $425 $71
From Other Agencies 2,568 2,100 (468) '
TOTAL REVENUES 2,922 2,525 (397)
EXPENDITURES
Current:
City Administrator 2 2 ,
Community Development 700 413 287
Police 165 327 (162)
Economic Development 876 436 440
Library Services 88 72 16 '
Public Works 75 13 62
Non-Departmental 152 17 135
Capital Outlay 5,279 1,585 3,694
TOTAL EXPENDITURES 7,337 2,865 4,472
EXCESS OF REVENUES OVER(UNDER) '
EXPENDITURES (4,415) (340) 4,075
FUND BALANCE,BEGINNING OF YEAR 89 89
RESIDUAL EQUITY TRANSFERS ,
Residual Equity Transfers In 398 398
Residual Equity Transfers Out (86) (166) (80)
TOTAL RESIDUAL EQUITY TRANSFERS 312 232 (80)
FUND BALANCE-END OF YEAR ($4,014) (319) $3.995 '
PARK ACQUISITION AND DEVELOPMENT
Variance
Favorable ,
REVENUES: Budget Actual (unfavorable)
Licenses and Permits $1,010 $863 ($147)
From Use of Money and Property 16 36 20
From Other Agencies 121 121 '
TOTAL REVENUES 1,026 1,020 (6)
EXPENDITURES
Current:
Community Services 346 252 94 t
Capital Outlay 1,188 782 406
TOTAL EXPENDITURES 1,534 1,034 500
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (508) (14) 494 '
FUND BALANCE,BEGINNING OF YEAR 548 548
Residual Equity Transfers In 5 5
FUND BALANCE-END OF YEAR $45 $539 $494
B8
' CITY OF HUNTINGTON BEACH
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
' BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
1 (In Thousands)
NARCOTICS FORFEITURE
variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $75 $101 $26
From Other Agencies 1,050 782 (268)
TOTAL REVENUES 1,125 883 (242)
'EXPENDITURES
Current:
Police 1,208 1,009 199
Capital Outlay 152 137 15
TOTAL EXPENDITURES 1,360 1,146 214
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (235) (263) (28)
OTHER FINANCING USES
Operating Transfers Out (100) (100)
XCESS OF REVENUE OVER(UNDER)
XPENDITURES AND OTHER USES (335) (363) (28)
FUND BALANCE,BEGINNING OF YEAR 1,633 1,633
�ESIDUAL EQUITY TRANSFERS
Residual Equity Transfers In 3 3
Residual Equity Transfers Out (8) (8)
TOTAL RESIDUAL EQUITY TRANSFERS (5) (5)
UND BALANCE-END OF YEAR $1,293 $1,265 ($28)
FLOOD CONTROL
' Varianoe
Favorable
REVENUES: Budget Actual (Unfavorable)
9rom Use of Money and Property $6 $6
UND BALANCE,BEGINNING OF YEAR 70 70
FUND BALANCE-END OF YEAR $70 $76 $6
1 69
CITY OF HUNTINGTON BEACH '
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES ,
BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(Expressed in Thousands)
TRANSPORTATION
Variance ,
Favorable
REVENUES: Budget Actual (Unfavorable)
Other Taxes $1,200 $2,545 $1,345
Licenses and Permits 20 156 136
From Use of Money and Property 97 97
Other 3 3
TOTAL REVENUES 1,220 2,801 1,581
EXPENDITURES ,
Current:
Public Works 710 767 (57)
Capital Outlay 2,961 917 2,044
TOTAL EXPENDITURES 3,671 1,684 1,987 '
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (2,451) 1,117 3,568
FUND BALANCE,BEGINNING OF YEAR (237) (237) '
Residual Equity Transfers Out (141) (141)
FUND BALANCE-END OF YEAR ($2.829) $739 $3,568
AIR QUALITY ,
Vaname
Favorable
REVENUES: Budget Actual (Unfavorable) '
From Use of Morley and Property $3 $1 ($2)
From Other Agencies 180 215 35
TOTAL REVENUES 183 216 33
EXPENDITURES
Current:
City Administrator 158 161 (3)
Capital Outlay 28 3 25
TOTAL EXPENDITURES 186 164 22 '
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (3) 52 55
FUND BALANCE(DEFICIT),BEGINNING OF
YEAR (22) (22)
FUND BALANCE-END OF YEAR ($25) $30 S55
1
70 ,
' CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(In Thousands)
' TOTAL SPECIAL REVENUE FUNDS
Variance
' Favorable
REVENUES: Budget Actual (Unfavorable)
Other Taxes $1,200 $2,545 $1,345
Licenses and Permits 1,235 1,187 (48)
1 From Use of Money and Property 1,003 1,543 540
From Other Agencies 8,193 7,597 (596)
Charges for Current Service 15 15
Other 6 7 1
TOTAL REVENUES 11,637 12,894 1,257
EXPENDITURES
Current:
City Administrator 552 567 (15)
Community Development 700 413 287
Police 1,373 1,336 37
Economic Development 876 436 440
Community Services 346 252 94
' Library Services 88 72 16
Public Works 1,784 1,721 63
Non-Departmental 152 17 135
CapitalOutiay 22,138 7,754 14,384
TOTAL EXPENDITURES 28,009 12,568 15,441
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (16,372) 326 16,698
OTHER FINANCING USES
Operating Transfers Out (1,785) (1,785)
iEXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES (18,157) (1,459) 16,698
t FUND BALANCE,BEGINNING OF YEAR 15,121 15,121
Prior Period Adjustments 172 172
FUND BALANCE AS RESTATED 15,293 15,293
RESIDUAL EQUITY TRANSFERS
' Residual Equity Transfers In 1,789 2,187 398
Residual Equity Transfers Out (435) (515) (80)
TOTAL RESIDUAL EQUITY TRANSFERS 1,354 1,672 318
FUND BALANCE(DEFICIT)-END OF YEAR ($1,510) $15,506 $17,016
1
1
1 71
DEBT SERVICE FUNDS account for the receipts for and
payment of general long-term debt.
tThe 1970 Park Bonds Fund accounts for the receipt and payment of
property tax revenues for the 1970 Park Bonds, a general obligation
' bond.
The Redevelopment Agency Debt Service Fund records the property
tax increment revenues received from Redevelopment projects. The
tax increment repays the debt of the Redevelopment Agency.
' The Public Facilities Corporation Debt Service Fund records the debt
service activity of the Huntington Beach Public Facilites Corporation.
' The Parkinq Authority Debt Service Fund records the debt service
activity of the Parking Authority of the City of Huntington Beach.
The Public Financing Authority Fund accounts for the debt service
' activity of the Huntington Beach Public Financing Authority.
The Reservoir Hill Debt Service Fund accounts for the debt service
' activity of the Reservoir Hill Assessment bonds.
The Civic Improvement Corporation Fund records the debt service
iactivity of the Huntington Beach Civic Improvement Corporation.
DEBT SERVICE FUNDS 1
COMBINING BALANCE SHEET
JUNE 30,1993 WITH COMPARATIVE TOTALS FOR JUNE 30,1992
(IN THOUSANDS)
1970 Park Redevelopment Public Facilities
ASSETS Bonds Agency Corporation Parking Authority 1
Cash and Investments $516 $6,275 $225
Cash With Fiscal Agent 409 687
Taxes Receivable 14 195
Other Receivables 153 5 9
Advances to Other Funds '
Deposits and Other Assets 9
TOTAL ASSETS $530 $6,632 $414 $921
LIABILITIES AND FUND EQUITY 1
LIABILITIES:
Accounts Payable $32
Other Accrued Liabilities 174
TOTAL LIABILITIES 206 1
FUND EQUITY
Reserved Equity
Reserved for Long-Term Receivables
Reserved for Debt Service 530 6,426 414 921 '
Total Reserved Fund Equity 530 6,426 414 921
TOTAL FUND EQUITY 530 6,426 414 921
TOTAL LIABILITIES AND FUND EQUITY $530 $6,632 $414 $921
1
1
i
1
i
i
1
1
1
1
1
72 1
1
1
1 Public Financing Reservior Hill Civic Improvement
Authority Assessment District Corporation Total 1993 Toni 1992
$163 $7,179 $6,518
4,746 112 2,908 8,862 9,429
1 210 421
1 11 55 233 225
30,758 30,758 30,811
9
$35,515 $276 $2,963 $47,251 $47,404
1
1 $14 1$4674 $518
na
14 220 518
1 30,758 30,758 30,811
4,757 276 2,949 16,273 16,075
35,515 _ 276 2,949 47,031 46,886
35,515 276 2,949 47,031 46,886
' $35,515 $276 $2,963 $47,251 $47,404
1
1
1
1
1
1
1
1
1 73
CITY OF HUNTINGTON BEACH '
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES '
FOR THE YEAR ENDING JUNE 30,1993
WITH COMPARATIVE TOTALS FOR THE YEAR ENDING JUNE 30,1992
(IN THOUSANDS)
1970 Park Redevelq~ Public Facilities Public Financing
REVENUES: Bonds Agency Corporation Parking Authority Authority
Property Taxes $490 $3,676
Other Taxes '
From Use of Money and Property 38 683 13 41 1,529
Other
TOTAL REVENUES 528 4,359 13 41 1,529
EXPENDITURES
Current:
Community Services 3
Non-Departmental 943 1 35
Debt Service '
Principal 395 584 290 160
Interest 75 2,623 101 10 1,718
TOTAL EXPENDITURES 470 4,150 392 173 1,753
EXCESS OF REVENUES OVER(UNDER) '
EXPENDITURES 58 209 (379) (132) (224)
OTHER FINANCING SOURCES(USES)
Operating Transfers In 399
Proceeds of Long-Term Debt 517 ,
Gain on Loan Restructuring
Payments to Escrow
TOTAL OTHER FINANCING SOURCES 517 399
EXCESS OF REVENUE AND OTHER SOURCES OVER
(UNDER)EXPENDITURES AND OTHER USES 58 726 20 (132) (224)
FUND BALANCE,BEGINNING OF YEAR 472 5,700 493 1,053 35,739
RESIDUAL EQUITY TRANSFERS '
Residual Equity Transfers In
Residual Equity Transfers Out (99)
TOTAL RESIDUAL EQUITY TRANSFERS (99)
FUND BALANCE-END OF YEAR $530 $6,426 $414 $921 $35,515
74 '
1 Reservior Hill Civic Improvement
Assessment District Corporation Total 1993 Total 1992
192 $4,358 $4,920
178
12 164 2,480 2,854
195
204 164 6,838 8,147
3
8 2,525 3,512 1,480
1 195 465 2,089 31,739
122 2,472 7,121 11,075
325 5,462 12,725 44,294
1 (121) (5,298) (5,887) (36,147)
2,821 3,220 3,230
38,245 38,762 33,495
3,364
(35,851) (35,851) (27,867)
5,215 6,131 12,222
(121) (83) 244 (23,925)
397 3,032 46,886 35,838
35,034
(99) (61)
(99) 34,973
' $276 $2,949 $47,031 $46,886
' 75
CITY OF HUNTINGTON BEACH '
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL '
For the Year Ending June 30, 1993
(Continued)
(In Thousands)
1970 Park Bonds ,
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $500 $490 ($10)
From Use of Money and Property 20 38 18
TOTAL REVENUES 520 528 8 '
EXPENDITURES
Debt Service
Principal 395 395 '
Interest 75 75
TOTAL-EXPENDITURES 470 470
EXCESS OF REVENUES OVER EXPENDITURES 50 58 8 ,
FUND BALANCE,BEGINNING OF YEAR 472 472
FUND BALANCE-END OF YEAR $522 $530 Es-
Redevelopment Agency ,
Varian
Favorable
REVENUES: Budget Actual (Unfavorable)
Property Taxes $4,556 $3,676 ($11m)
From Use of Money and Property 257 683 426
TOTAL REVENUES 4,813 4,359 (454) ,
EXPENDITURES
Current:
Non-Departmental 1,021 943 78 '
Debt Service
Principal 289 584 (295)
Interest 2,900 2,623 277
TOTAL EXPENDITURES 4,210 4,150 60
EXCESS OF REVENUES OVER EXPENDITURES 603 209 (394)
OTHER FINANCING SOURCES(USES)
Proceeds of Long-Terre Debt 517 517
EXCESS OF REVENUE AND OTHER SOURCES
OVER EXPENDITURES 1,120 726 (394)
FUND BALANCE,BEGINNING OF YEAR 5,700 5,700
FUND BALANCE-END OF YEAR $6,820 $6,426 ($3941 '
I
1
76 ,
' CITY OF HUNTINGTON BEACH
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
' BUDGET AND ACTUAL
For the Year Ending June 30, 1993
(Continued)
(in Thousands)
' Public Facilities Corporation
' variance
Favorable
REVENUES: Budget Actual (Unfavorable)
From Use of Money and Property $38 $13 ($25)
EXPENDITURES
Current:
Non-Departmental 1 1
Debt Service
Principal 290 290
Interest 101 101
TOTAL EXPENDITURES 392 392
EXCESS OF REVENUES OVER(UNDER)
EXPENDITURES (354) (379) (25)
OTHER FINANCING SOURCES
Operating Transfers In 399 399
EXCESS OF REVENUE AND OTHER SOURCES OVER
' EXPENDITURES 45 20 (25)
FUND BALANCE,BEGINNING OF YEAR 493 493
Residual Equity Transfers Out (100) (99) 1
FUND BALANCE-END OF YEAR $438 $414 ($24)
' Parking Authority
Variance
Favorable
REVENUES: Budget Actual (Unfavorable)
' From Use of Money and Property $84 $41 ($43)
EXPENDITURES
Current:
Community Services 18 3 15
Debt Service
' Principal 160 160
Interest 10 10
TOTAL EXPENDITURES 188 173 15
EXCESS OF REVENUES OVER(UNDER)
' EXPENDITURES (104) (132) (28)
FUND BALANCE,BEGINNING OF YEAR 1,053 1,053
FUND BALANCE-END OF YEAR $949 $921 ($28)
1
77