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Home My WebLink AboutCAFR - FY 2015-16City of Diamond Bar, California Comprehensive Annual Financial Report Year ending June 30, 2016 ,.� y_ ..-.F.✓'��f 77 ol 0 Ir PT 010 4 f �,• .�:$ CITY OF DIAMOND BAR, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 Prepared by: Finance Department Dianna Honeywell Director of Finance THIS PAGE INTENTIONALLY LEFT BLANK CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal................................................................................................ GFOA Certificate of Achievement for Excellence in Financial Reporting ............... OrganizationChart.................................................................................................. List of Elected and Administrative Officials............................................................. FINANCIAL SECTION Independent Auditors' Report................................................................................. Management's Discussion and Analysis (Required Supplementary Information) .. BASIC FINANCIAL STATEMENTS Government -wide Financial Statements Statement of Net Position.......................................................................... Statement of Activities................................................................................ Fund Financial Statements Balance Sheet — Governmental Funds ...................................................... Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position................................................................ Statement of Revenues, Expenditures, and Changes in Fund Balances.. Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities Statement of Net Position — Proprietary Funds ......................................... Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds...................................................................... Statement of Cash Flows — Proprietary Funds .......................................... Statement of Fiduciary Net Position — Fiduciary Funds ............................. Statement of Changes in Fiduciary Net Position — Fiduciary Funds ......... Notes to Basic Financial Statements............................................................ Page(s) ... i .vi vii viii 1 5 15 16 18 .21 .22 .24 .25 .26 .27 .28 .29 .31 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page(s) REQUIRED SUPPLEMENTARY INFORMATION Notes to Required Supplementary Information...........................................................................61 Budgetary Comparison Information: Budgetary Comparison Schedule — General Fund.............................................................62 Budgetary Comparison Schedule — Transportation Grant Fund.........................................63 Schedule of Proportionate Share of the Net Pension Liability....................................................64 Schedule of Plan Contributions...................................................................................................65 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds.....................................................66 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds.......................................................................72 Budgetary Comparison Schedules - Special Revenue Funds: StateGas Tax Fund.................................................................................................................77 Proposition A Transit Fund......................................................................................................78 Proposition C Transit Fund.....................................................................................................79 Integrated Waste Management Fund......................................................................................80 TrafficImprovement Fund........................................................................................................81 SewerMitigation Fund.............................................................................................................82 AirQuality Improvement Fund.................................................................................................83 Trails& Bikeways Fund............................................................................................................84 MTAGrant Fund......................................................................................................................85 Beverage Center Recycling Grant Fund..................................................................................86 Used Oil Block Grant Fund......................................................................................................87 Park and Facility Development Fund.......................................................................................88 Community Development Block Grant (CDBG) Fund.............................................................89 Citizens Option for Public Safety (COPS) Fund......................................................................90 California Law Enforcement Equipment Program (CLEEP) Fund...........................................91 Landscape Maintenance District Fund.....................................................................................92 Measure R Local Return Fund.................................................................................................93 PEGFees Fund.......................................................................................................................94 WasteHauler Fund..................................................................................................................95 Budgetary Comparison Schedule — Capital Projects Fund: CapitalImprovement Funds.....................................................................................................96 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 TABLE OF CONTENTS Page(s) Budgetary Comparison Schedule - Debt Service Funds: PublicFinancing Authority........................................................................................................97 Combining Statement of Net Position — Internal Service Funds.................................................98 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position — Internal Service Funds................................................................................99 Combining Statement of Cash Flows — Internal Service Funds................................................100 STATISTICAL SECTION Financial Trends: Net Position by Component - Last Ten Fiscal Years................................................................102 Changes in Net Position - Last Ten Fiscal Years......................................................................104 Fund Balances of Governmental Funds - Last Ten Fiscal Years .............................................107 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ..........................108 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years...............111 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .......................................112 Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago ..........................114 Secured Property Tax Levies and Collections — Last Ten Fiscal Years ...................................115 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ...................................................116 Direct and Overlapping Debt.....................................................................................................117 Computation of Legal Debt Margin - Last Ten Fiscal Years .....................................................118 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years ..........................................119 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago ....................................120 Operating Information: Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years .............................121 Operating Indicators by Function - Last Ten Fiscal Years ........................................................122 Capital Asset Statistics by Function - Last Ten Fiscal Years....................................................123 THIS PAGE INTENTIONALLY LEFT BLANK Nancy A. Lyons Mayor Jimmy Lin Mayor Pro Tem Carol Herrera Council Member Ruth M. Low Council Member Steve Tye Council Member City of Diamond Bar 21810 Copley Drive. Diamond Bar, CA 91765-4178 November 2, 2016 (909) 839-7000. Fax (909) 861-3117 www.DiamondBarCA.gov Honorable Mayor and Members of the City Council City of Diamond Bar Diamond Bar, California It is a pleasure to submit the Comprehensive Annual Financial Report of the City of Diamond Bar for the fiscal year ended June 30, 2016. This report consists of management's representations concerning the finances of the City. Consequently, responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City's management. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformance with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide assurance that the financial statements will be free from misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. The City's financial statements have been audited by Lance, Soll, & Lunghard, LLP, a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for fiscal year ended June 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended June 30, 2016, were fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF DIAMOND BAR The City, incorporated in 1989, is located at the junction of the SR -57 and SR -60 freeways. As a result, the City of Diamond Bar is at the hub of the Los Angeles basin transportation network. A twenty-five mile radius encompasses Pasadena, downtown Los Angeles, Long Beach, Irvine and Riverside. Diamond Bar is a relatively young residential community of about 57,000, situated among the meandering hills and valleys of Brea Canyon. Many desired services can be found in Diamond Bar's shopping and business centers. Recreational opportunities within the City include more than 75 acres of developed park facilities, hiking trails, a community center, an 18 -hole public golf course and 370 acres of undeveloped publicly owned open space. The City has operated under the council-manager form of government since incorporation. Policy making and legislative authority are vested in a five member City Council. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and task forces, and hiring both the City Manager and contracting for City Attorney services. The City Manager is responsible for overseeing the day -to day operations of the City, and for appointing the heads of the various departments. The Council is elected on a non-partisan basis. Council members serve four-year staggered terms, with elections held every other year. Each December, the City Council selects a Mayor and Mayor Pro Tem from its membership. The City of Diamond Bar is a contract city and as such contracts for many of its services. This includes police services, building and safety services, engineering, road maintenance and landscape maintenance. The Los Angeles County Fire District provides fire protection, which is independent of the City. The County also provides library services through a Library District as well as sewer and sanitation services through a Sanitation District. Funds are collected through property tax bills and are disbursed directly by the Los Angeles County Tax Collector's Office. Water services for the City are provided by the Walnut Valley Water District. Refuse collection is provided by private waste collection companies. Additionally, schools are provided by both the Walnut Valley Unified School District and the Pomona Unified School District. Accordingly, none of these activities are included in this report. ECONOMIC CONDITION AND OUTLOOK Fiscal year 2015/16 saw sustained improvement in the national, state and local economies. Unemployment rates have continued to come down and consumer spending is on the rise. The housing market has also remained strong. Fiscal year 2015/16 was a year of continued growth for the City of Diamond Bar. It was another year of monitoring where revenues were headed, while holding costs to prior year levels wherever possible. The General Fund reserves increased by $1.7 million during FY 15/16 with the unassigned fund balance growing to $19.3 million and total General Fund reserves coming in at $23.9 million. These reserve figures represent 94.2% and 116.4%, respectively, of total General Fund expenditures. The City's sales tax base grew with an increase in revenue of 15.7% over last year. City officials have been working diligently toward its economic development goal to diversify its sales tax base. FY 15/16 saw the addition of new business' which have provided additional and significant sales tax revenue to the City. New retail and restaurant options are under construction or in the planning phase for openings in FY 16/17 and FY 17/18. In addition, hotel occupancy rates were high, thereby increasing the transient occupancy tax revenue. The largest revenue source in the City, Property Tax revenue, was up 4.9%. Homeowners took advantage of the strong housing market by selling their properties at a gain. Property transfers during FY 15/16 numbered 844 vs. 746 during the previous fiscal year. The average home price at June 30, 2016 was $740,000 while the median price was $575,000. Home values in the City during FY 2015/16 outpaced the growth seen countywide. Assessed valuations citywide increased by 6.4% which exceeded the countywide increase of 5.5%. As the City looks forward to FY 2016/17 there are many exciting projects on the horizon. The revitalization of the K -Mart Center will bring nationally known retail and restaurant partners to the City. A new housing development, South Point, will begin construction during the next fiscal year and bring 99 upscale, single family homes to the City. Finally, the City will embark on an all new General Plan for the first time in over 20 years. This process will allow the current residents of the City provide input as to their vision of the City for the next 20 years. It will be a very interactive, dynamic and exciting process that will continue for the next couple of years. The City's future economic health is being secured by building healthy reserves through fiscally conservative budgets and policies in addition to aggressively pursuing economic development opportunities. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Diamond Bar for its comprehensive annual financial report for the fiscal year ended June 30, 2015. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, with contents that conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last twenty-one consecutive years (fiscal years ended 1995 through 2015). We believe our current report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. REPORTING ENTITY AND ITS SERVICES This Comprehensive Annual Financial Report includes all funds of the City. The City directly provides a limited range of services and contracts for several other services. The City's significant reliance on contracted services has the benefit of reducing expenses to the citizens of the City of Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding to changing economic conditions. Contracted services include police protection, building and safety, street maintenance, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include: community development (which includes planning, economic development, building and safety management, and neighborhood improvement), public works (which includes engineering, capital projects administration, street maintenance contract management, traffic and transportation matters, engineering contract management, and solid waste contract management), community services (which includes senior services, park maintenance, recreation services, community center operation, and landscape maintenance), public information, subsidized transit ticket sales, grant administration, financial management, and administrative management. All of these activities are included in this report. iv INTERNAL CONTROLS The City of Diamond Bar's accounting system has been developed by giving consideration to the adequacy of internal accounting controls. Internal accounting controls are implemented by the City to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and that the City's financial records used for preparing financial statements are maintained in a reliable fashion. The concept of reasonable assurance recognizes that the cost of these controls should not exceed the benefits derived from them. The City's internal controls accomplish these objectives. ACKNOWLEDGEMENTS The preparation of this Comprehensive Annual Financial Report was made possible by the dedicated service and excellence found within the City's Finance Department staff, and through the cooperation of the entire City staff. Each City staff member has my sincere appreciation for their cooperation and contributions in the preparation of this Report. I would like to thank Dianna Honeywell, Finance Director, for her prudent fiscal stewardship. In addition, I would also like to thank our independent auditor, Lance, Soll, and Lunghard, L.L.P., who provided expertise and advice in the preparation of the City's Comprehensive Annual Financial Report. In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this Report would not have been possible. Sincerely, yll—c James DeStefano City Manager v Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Diamond Bar California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2015 *4 '-p je�W A0"--AWt..* Executive Director/CEO A .tdE a).( L. k {f}{ a u3 &2<2 . Im _ _ CL a- LULE � m2 kU §� \ E > Z, LU L.rl §6 — }: eE U e � } 3 j } ) \ \ c E % _ / > § o ) ° # - - \ 0 U ] \ �= a �( � � . . v § E ) ( E\ j } 2 ! .1 Ln } § _y u / )) m w 2 / 7 \ u § $ 2 1=0 c j\7} o E c [ ) }) & % ( E 0 } ( ( 2 ( � co 0 c ; E , K / 7 \ E $ § o § s § } \) k 2 o ƒ 0)} (� } I }(, §(\/ u:e #%2 2 —)( & CL \/u k w E / j 2 'E\ � 5 5 MLl ro > h - ` / \ - \ § ) ) \ 2 i - » ] Q / 2 { { � /) 2 o� u \ , 7 _ = O u / E ± vii... CITY OF DIAMOND BAR ELECTED AND ADMINISTRATIVE OFFICIALS Mayor Mayor Pro Tern Councilmember Councilmember Councilmember City Manager Deputy City Manager City Clerk Director of: Community Services Community Development Finance Information Systems Public Works FISCAL YEAR 15-16 viii Nancy A. Lyons Jimmy Lin Carol Herrera Steve Tye Ruth Low James DeStefano Ryan McLean Tommye Cribbins Vacant Greg Gubman Dianna Honeywell Ken Desforges David Liu LSUI* so• 00• CPAs AND ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Diamond Bar, California, (the City) as of and for the year ended June 30, 2016, and the related notes to financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. PrimeGlobal LSU*::: To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Diamond Bar, California, as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison schedules for the general fund and transportation grant fund, the schedule of proportionate share of the net pension liability and the schedule of plan contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 LSUe:::66 To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 2, 2016 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Brea, California November 2, 2016 3 THIS PAGE INTENTIONALLY LEFT BLANK Management's Discussion and Analysis As management of the City of Diamond Bar, we offer readers of the City of Diamond Bar's financial statements this narrative overview and analysis of the financial activities of the City of Diamond Bar for the fiscal year ended June 30, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlights • The total revenues and other financing sources from all sources equaled $33,022,952. • The total cost of all City programs equaled $32,800,979. • The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by $393,268,913 (net position). Of this amount, $22,742,992 represents unrestricted net position may be used to meet the City's ongoing obligations to citizens and creditors. • As of the close of the current fiscal year, the City of Diamond Bar's governmental funds reported combined ending fund balances of $30,330,518, an increase of $2,445,752 in comparison with the prior year. Approximately $18.4 million of the $30.3 million is available for spending at the City's discretion. • At the end of the current fiscal year, unrestricted fund balance for the general fund was $19,350,943, or 94.2% of the amount of general fund expenditures. The General Fund unrestricted balance of $19.4 million is in addition to a $4.5 million reserve for emergencies as established by City Council resolution. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Diamond Bar's basic financial statements. The City of Diamond Bar's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements — The government —wide financial statements are designed to provide readers with a broad overview of the City of Diamond Bar's finances, in a manner similar to a private -sector business. The statement of net position presents financial information on all of the City of Diamond Bar's assets, liabilities and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Diamond Bar is improving or deteriorating. 5 The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of Diamond Bar that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Diamond Bar include general government, public safety, highways and streets, community development, and parks and recreation. The City of Diamond Bar currently has no business -type activities or enterprise funds. The government -wide financial statements include not only the City of Diamond Bar itself, but also a legally separate financing authority. Although legally separate, the Diamond Bar Financing Authority is included because the City is financially accountable for it. Fund financial statements — A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Diamond Bar, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, available at the end of the fiscal year. Such information may be useful in assessing the near-term financing requirements necessary to finance City programs. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government - wide financial statements. By doing so, readers may better understand the long-term impacts of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Diamond Bar adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. 0 Proprietary Funds — The type of proprietary funds that the City maintains are internal service funds that are used to allocate costs internally among the various functions of the City. The City of Diamond Bar uses these funds to account for its liability insurance costs and vehicle, building and computer replacement costs. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities within the government -wide financial statements. Fiduciary Funds — Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City of Diamond Bar maintains one fiduciary fund which is the Other Post - Employment Benefits (OPEB) Trust Fund. This fund is used to report resources held in trust for retiree's post -employment health insurance premiums. Notes to the Financial Statements — The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. Other Information — In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's budgetary control and accounting and expenditures in excess of appropriations. Government -wide Financial Analysis As noted earlier, net position over time, may serve over time as a useful indicator of the City's financial position. The City of Diamond Bar's assets exceeded liabilities by $393,268,913 at the close of 2016. (see Table 1) By far the largest portion of the City's net position (92.4%) is its investment in capital assets (e.g., land, buildings, infrastructure, machinery, equipment, and construction in progress), less the related outstanding debt used to acquire those assets. The City of Diamond Bar uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 7 Table 1 CITY OF DIAMOND BAR'S Statement of Net Position Governmental Activities 2016 2015 Current and other assets $38,010,700 $36,937,467 Capital assets 373,438,626 379,401,376 Total Assets 411,449,326 416,338,843 Deferred pension related items Total Deferred Outflows Long-term debt outstanding Other Liabilities Total Liabilities Deferred pension related items Total Deferred Inflows Net position: Net investment in capital assets Restricted Unrestricted Total Net Position 1,169,894 503,376 1,169,894 503,376 14,554,269 14,868,078 4,292,550 5,667,561 18,846,819 20,535,639 503,488 1,143,840 503,488 1,143, 840 363,216,277 368,779,901 7,309,644 5,723,781 22,742,992 20,659,058 $393,268,913 $395,162,740 The City's net position decreased by $1,893,827. This reasons for this overall decrease is due primarily to depreciation expense and the correction of the valuation of construction in progress from last fiscal year. At the end of fiscal year 2016 the City reports an increase of nearly $2.1 million in the unrestricted net position from the prior fiscal year. The City has continually expended its resources conservatively in anticipation of economic downturns and future capital needs which has resulted in being able to end the year with $22,742,992 in Unrestricted Net Position. 0 Table 2 City of Diamond Bar's Changes in Net Position Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues Property taxes Transient occupancy taxes Sales Taxes Franchise Taxes Other taxes Motor vehicle in lieu Use of money & property Other Total revenues Expenses: General Government Public Safety Highways and Streets Community Development Parks, Recreation and Culture Interest and Fiscal Charges Total expenses Increase(Decrease) in net position Net position - beginning Restatement of Net Position Net position - ending Revenues 2016 2015 $9,027,647 $10,869,461 3,687,015 4,443,765 1,455,770 717,961 4,665,140 4,448,566 994,476 935,355 4,598,858 3,974,564 1,431,513 1,460,342 523,015 442,914 5,411,143 5,133,910 524,918 244,275 703,457 114,545 33,022,952 32,785,658 5,897,286 6,523,873 6,216,279 5,930,251 11, 966, 721 10, 225, 922 2,127,206 2,587,504 6,137,787 6,300,920 455,700 466,662 32,800,979 32,035,132 221,973 750,526 395,162,740 398,429,156 (2,115,800) (4,016,942) $393,268,913 $395,162,740 In the Statement of Activities, the City's total revenues were $33.0 million, while the total cost of all programs and services was $32.8 million. Revenues this fiscal year were 0.724% higher than those of the prior year. There were increases across the revenue categories which resulted in the overall change in revenue. The following are highlights of some of the major differences: Property Tax revenues were up 4.9% from FY14-15. The housing market continued to improve during FY 15-16 which afforded greater inflation/Proposition 13 based adjustments. Housing sales also continued to increase which allowed the County to increase overall assessed valuations by 5.5% during 2016 while Diamond Bar's assessed valuations were up by 6.4% during 2016. 9 Transient Occupancy Taxes grew by 6.3% in FY 15-16 as the local economy stabilized and business and vacation travel continued to increase. Sales tax revenues were up about 15.7% due to continued improvement in the local economy, new businesses within the City, as well as a one-time final payment of the triple flip portion of sales tax. Investment Income increased by 45.3%, excluding the fair market value adjustment of $229,072, due to improving investment yields available in the bond market coupled with more of the City's portfolio being further diversified into higher yielding investments such as highly rated corporate bonds and California municipal bonds. The Local Agency Investment Fund (LAIF) rate also started to show some improvement and ended the fiscal year at 0.55%. By the end of FY 15/16 the City's overall investment yield increased from 0.97% in FY 2014/15 to 1.297% in FY 2016/17. Expenses Once again this year, the City has continued to be very diligent in controlling growth in expenses. This year expenses for the City totaled $32.8 million which is approximately $766,000, or 2.4% higher than the previous fiscal year. This increase was due increases in expenses offset by decreases in various categories as follows: • There was a decrease in General Government expenses of approximately 10.9% this year. This was due primarily to lower capital outlay in this category this year compared to last year. • There was an increase in Public Safety expenses of approximately 4.8% this year. • The Streets and Highways category increased this year by $1.7 million. This is due to an increase in the number of Capital Improvement projects completed during the fiscal year. • Community Development expenses were lower in 2015/16 by $460,000. The decrease reflects lower professional services required due to a majority of the Willow Heights housing development being completed during FY 14/15. Financial Analysis of the City's Funds As noted earlier the City of Diamond Bar uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds - The focus of the City of Diamond Bar's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a City's net resources available for spending at the end of the fiscal year. 10 At June 30, 2016, the City of Diamond Bar's governmental funds reported combined ending fund balances of $30,330,518, an increase of $2,445,752 in comparison with the prior year. Approximately 60.8% of this amount ($18,445,008) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is either nonspendable, restricted or assigned to indicate that it is 1) not in spendable form ($75,866), 2) restricted for particular purposes ($7,309,644) or 3) assigned for particular purposes ($4,500,000). The general fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the general fund was $19,350,943, while the total fund balance was $23,926,809. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 94.2% of total general fund expenditures, while total fund balance represents 116.4% of the same amount. Since the City's incorporation in 1989, the City has been fiscally conservative contributing to healthy fund balance reserves. Several years ago the City chose to fund major maintenance projects from General Fund reserves when other funds were not available for this purpose. This fiscal year General Fund balance increased $1,694,263. Factors contributing to the change in General Fund balance reserves are as follows: • General Fund revenues were up $485,000 from FY14/15. The largest increase was in the Taxes category ($2.2 million) which is primarily attributed to sales tax, offset by lower license & permit revenue (down $1.8 million). This was due to the wind down of the Willow Heights housing project during FY 15/16. • Costs were higher this year in the General Fund by $1.1 million (5.7%) as compared to last year. There were notable increases in the General Government, Public Safety and Public Works category offset by lower costs in Community Development. • Conservative expenditure budgets over the years have contributed to the City's general fund healthy fund balance reserve. This includes a contract city business model which aids the City in containing costs. General Fund Budgetary Highlights Original revenue budget projections were increased during the year by 7.5% to reflect an increase in sales tax, licenses & permits and intergovernmental revenues. The actual revenue came in lower than anticipated by $289,000. This is due to higher than anticipated sales tax offset by lowers offset by the fact that transfers into the General Fund were lower than anticipated. General Fund appropriations were increased during the year by $1,096,318 or 4.1 % from the original budget to the amended budget. The final expenditures actually came in $4,146,555 less than the amended budget due primarily to fewer projects being completed therefore lower transfers out of the General Fund. These projects have been carried over to the new fiscal year. 11 Capital Asset and Debt Administration Capital assets - The City of Diamond Bar's investment in capital assets for its governmental activities as of June 30, 2016 amounts to $363,216,277 (net of accumulated depreciation). This investment in capital assets includes land, Right of Way, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and construction in progress. Table 3 City of Diamond Bar Capital Assets (net of depreciation) Land Right of Way Buildings and Improvements Furniture and Fixtures Vehicles & Equipment Infrastructure Construction in Progress 2016 2015 $5,633,624 $5,633,624 265,614,104 265,614,104 19,236,765 20,237,112 292,200 607,700 934,779 925,982 77,379,900 81,910,754 4,347,254 4,472,100 $373,438,626 $379,401,376 The City's capital assets decreased in value $5,962,750 during FY15/16. This decrease was due to depreciation expense offset by higher construction in progress than in previous years. Construction in progress at the end of the year included eleven projects in various stages of design or construction. The eleven projects equaling $4,347,254 include street rehabilitation and enhancement projects, traffic mitigation projects, median modification, city entry monuments, a clock, and various park projects. Additional information on the City's capital assets can be found in note 4. Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt equaled $10,800,547. The following table shows the breakdown of the long-term debt outstanding: Outstanding Long Term Debt at Year-end Variable Rate Lease Revenue Bonds (backed by the Public Financing Authority) $ 10,035,000 Unamortized Bond Premium 187,349 Compensated Absences 578,198 $ 10,800,547 12 See footnote 5 for additional information on the City's long-term liabilities as of June 30, 2016. Economic Factors and Next Year's Budgets and Rates While the City maintains a diverse and upscale housing stock, the City's economy is equally dependent on commercial and retail revenues. The City's concentration on maintaining and attracting new business clientele is of utmost importance. The City's 2016/2017 budget is a fiscally conservative budget. As the economy continues to improve, anticipated revenues in the General Fund reflect moderate yet realistic growth. The ongoing operations budget has been maintained at the status quo as much as possible. This budget presents an operating plan that permits the City to live within a reasonable estimate of revenues while continuing to provide community programs and services to the residents of the City of Diamond Bar. The City has made a conscientious decision to use some general fund balance reserves for economic development purposes. As a result, the FY 16/17 budget includes an appropriation for economic development. It is anticipated that these efforts will continue to be rewarded in the near future with the development of several new retail spaces. Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City of Diamond Bar's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Department, at the City of Diamond Bar, 21810 Copley Drive, Diamond Bar, California 91765. 13 THIS PAGE INTENTIONALLY LEFT BLANK 14 CITY OF DIAMOND BAR STATEMENT OF NET POSITION JUNE 30, 2016 Assets: Cash and investments Receivables: Accounts Notes and loans Accrued interest Prepaid costs Due from other governments Restricted assets: Cash with fiscal agent Due from employees Capital assets not being depreciated Capital assets, net of depreciation Total Assets Deferred Outflows of Resources: Deferred pension related items Total Deferred Outflows of Resources Liabilities: Accounts payable Accrued liabilities Accrued interest Unearned revenue Deposits payable Due to other governments Noncurrent liabilities: Due within one year Due in more than one year Net pension liability OPEB liability Total Liabilities Deferred Inflows of Resources: Deferred pension related items Total Deferred Inflows of Resources Net Position: Net investment in capital assets Restricted for: Community development projects Public safety Public works Capital projects Debt service Unrestricted Total Net Position See Notes to Financial Statements 15 Governmental Activities $ 34,317,512 543,514 345,592 101,862 75,866 2,622,024 29 4,301 275,594,982 97,843,644 411,449,326 1,169,894 1,169, 894 2,415,634 425,749 36,131 151,117 918,327 345,592 799,458 10,001,089 3,337,560 416,162 18,846,819 503,488 503,488 363,216,277 2,382,667 193,941 4,465,023 267,984 29 22,742,992 $ 393,268,913 CITY OF DIAMOND BAR STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 Functions/Programs Primary Government: Governmental Activities: General government Public safety Community development Parks, recreation and culture Highways and Streets Interest on long-term debt Total Primary Government Expenses Program Revenues Operating Capital Charges for Contributions Contributions Services and Grants and Grants Net (Expenses) Revenue and Changes in Net Position Governmental Activities $ 5,897,286 $ 661,910 $ - $ - $ (5,235,376) 6,216,279 470,722 235,341 - (5,510,216) 2,127,206 1,820,325 213,676 - (93,205) 6,137,787 1,684,814 38,111 11,233 (4,403,629) 11,966,721 4,389,876 3,199,887 1,444,537 (2,932,421) 455,700 - - - (455,700) $ 32,800,979 $ 9,027,647 $ 3,687,015 $ 1,455,770 (18,630,547) General Revenues: Taxes: Property taxes, levied for general purpose 4,665,140 Transient occupancy taxes 994,476 Sales taxes 4,598,858 Franchise taxes 1,431,513 Other taxes 523,015 Motor vehicle in lieu - unrestricted 5,411,143 Use of money and property 524,918 Other 703,457 Total General Revenues 18,852,520 Change in Net Position 221,973 Net Position at Beginning of Year 395,162,740 Restatement of Net Position (2,115,800) Net Position at End of Year $ 393,268,913 See Notes to Financial Statements 16 THIS PAGE INTENTIONALLY LEFT BLANK 17 CITY OF DIAMOND BAR BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2016 See Notes to Financial Statements 18 Special Revenue Capital Projects Funds Funds Capital Transportation Improvement General Grant Fund Fund Assets: Pooled cash and investments $ 24,202,998 $ - $ 131,727 Receivables: Accounts 350,784 - - Notes and loans - - - Accrued interest 101,862 - - Prepaid costs 75,866 - - Due from other governments 1,651,713 924,345 - Due from other funds 932,921 - - Due from employees 4,301 - - Restricted assets: Cash and investments with fiscal agents - - - Total Assets $ 27,320,445 $ 924,345 $ 131,727 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 1,992,878 $ - $ 113,680 Accrued liabilities 401,025 - - Unearned revenues 77,481 - - Deposits payable 918,327 - - Due to other governments - - - Due to other funds - 923,982 - Total Liabilities 3,389,711 923,982 113,680 Deferred Inflows of Resources: Unavailable revenues 3,925 924,345 - Total Deferred Inflows of Resources 3,925 924,345 - Fund Balances: Nonspendable: Prepaid costs 75,866 - - Restricted for: Community development projects - - - Public safety - - - Highways and streets - - - Capital Projects - - - Debt service - - - Assigned to: Emergency contingencies 4,500,000 - - Unassigned 19,350,943 (923,982) 18,047 Total Fund Balances 23,926,809 (923,982) 18,047 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 27,320,445 $ 924,345 $ 131,727 See Notes to Financial Statements 18 CITY OF DIAMOND BAR BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Accrued interest Prepaid costs Due from other governments Due from other funds Due from employees Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Assigned to: Emergency contingencies Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances See Notes to Financial Statements 19 Other Total Governmental Governmental Funds Funds $ 7,451,489 $ 31,786,214 182,671 533,455 345,592 345,592 - 101,862 - 75,866 45,966 2,622,024 - 932,921 - 4,301 29 29 $ 8,025,747 $ 36,402,264 $ 263,212 $ 2,369,770 24,724 425,749 73,636 151,117 - 918,327 345,592 345,592 8,939 932,921 716,103 5,143,476 - 928,270 - 928,270 75,866 2,382,667 2,382,667 193,941 193,941 4,465,023 4,465,023 267,984 267,984 29 29 4,500,000 - 18,445,008 7,309,644 30,330,518 $ 8,025,747 $ 36,402,264 THIS PAGE INTENTIONALLY LEFT BLANK 20 CITY OF DIAMOND BAR RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2016 Fund balances of governmental funds $ 30,330,518 Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 372,944,833 Deferred outflows related to pension items: Adjustments due to difference in proportions $ 676,232 Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions 3,249 Difference between expected and actual experiences 29,942 Current year contributions that occurred after the measurement date 460,471 1,169,894 Long-term debt, compensated absences, other post employee benefit obligation and net pension liability that have not been included in the governmental fund activity: Bonds payable $ (10,035,000) Unamortized bond premiums/discounts (187,349) Compensated Absences (578,198) Other post employment benefit obligation (416,162) Net pension liability (3,337,560) (14,554,269) Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds. (36,131) Deferred inflows related to pension items: Net difference between project and actual earnings on pension plan investments $ (142,012) Adjustment due to difference in proportions (373) Change in assumptions (283,280) Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions (77,823) (503,488) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 928,270 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. 2,989,286 Net Position of governmental activities $ 393,268,913 See Notes to Financial Statements 21 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2016 Special Capital Projects Revenue Funds Funds Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Capital Transportation Improvement General Grant Fund Fund $ 12,930,081 $ - $ - 3,183,449 - - 5,411,926 531,298 100,841 1,689,328 - - 492,443 - - 470,722 - - 177,449 - - 24,355,398 531,298 100,841 5,176,138 - - 6,197,285 - - 1,787,433 - - 4,160,806 - - 3,133,330 - - 178,477 - 4,843,554 20,633,469 - 4,843,554 3,721,929 531,298 (4,742,713) 1,199,015 (3,226,681) (1,455,643) 4,832,321 (2,027,666) (1,455,643) 4,832,321 1,694,263 (924,345) 89,608 22,232,546 363 (71,561) $ 23,926,809 $ (923,982) $ 18,047 See Notes to Financial Statements 22 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2016 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year See Notes to Financial Statements 23 Other Total Governmental Governmental Funds Funds $ 781,232 $ 13,711,313 937,938 4,121,387 4,340,352 10,384,417 1,411,775 3,101,103 70,857 563,300 - 470,722 539,465 716,914 8,081,619 33,069,156 1,150 5,177,288 4,700 6,201,985 525,620 2,313,053 71,625 4,232,431 2,398,375 5,531,705 576,966 5,598,997 385,000 385,000 470,741 470,741 4,434,177 29,911,200 3,647,442 3,157,956 1,256,385 7,287,721 (3,317,601) (7,999,925) (2,061,216) (712,204) 1,586,226 2,445,752 5,723,418 27,884,766 $ 7,309,644 $ 30,330,518 CITY OF DIAMOND BAR RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 Net change in fund balances - total governmental funds $ 2,445,752 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital Expenditures $ 3,507,482 Depreciation Expense (7,327,701) (3,820,219) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal repayments $ 385,000 Amortization of bond premium 14,126 Other post employment benefit obligation 20,082 Compensated Absences 24,492 443,700 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 915 Pension contributions are expenditures in the governmental funds, but reduce the Net Pension Liability in the statement of net position and changes in the Net Pension Liability are expensed in government -wide statements. 1,176,979 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. (67,759) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities. 42,605 Change in net position of governmental activities $ 221,973 See Notes to Financial Statements 24 CITY OF DIAMOND BAR STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2016 Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Total Liabilities Net Position: Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position See Notes to Financial Statements 25 493,793 $ 3,035,150 $ 45,864 45,864 493,793 2,495,493 2,989,286 $ 3,035,150 Governmental Activities - Internal Service Funds Assets: Current: Cash and investments $ 2,531,298 Receivables: Accounts 10,059 Total Current Assets 2,541,357 Noncurrent: Capital assets - net of accumulated depreciation 493,793 Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Total Liabilities Net Position: Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position See Notes to Financial Statements 25 493,793 $ 3,035,150 $ 45,864 45,864 493,793 2,495,493 2,989,286 $ 3,035,150 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2016 Operating Revenues: Sales and service charges Miscellaneous Total Operating Revenues Operating Expenses: Administration and general Insurance Premiums Equipment repair and maintenance Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers Transfers in Changes in Net Position Net Position: Beginning of Year End of Fiscal Year See Notes to Financial Statements 26 Governmental Activities - Internal Service Funds $ 10,048 9,000 19,048 38,548 423,335 62,176 186,143 710,202 (691,154) 21,555 21,555 (669,599) 712,204 42,605 2,946,681 $ 2,989,286 CITY OF DIAMOND BAR STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2016 Net Cash Provided (Used) by Operating Activities (382,388) Cash Flows from Non -Capital Financing Activities: Cash transfers in 712,204 Net Cash Provided (Used) by Non -Capital Financing Activities 712,204 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (159,412) Net Cash Provided (Used) by Capital and Related Financing Activities (159,412) Cash Flows from Investing Activities: Interest received 21,555 Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities See Notes to Financial Statements 27 21,555 191,959 2,339,339 $ 2,531,298 $ (691,154) 186,143 180,114 1,450 (58,941 308,766 $ (382,388) Governmental Activities - Internal Service Funds Cash Flows from Operating Activities: Insurance Premiums paid $ (232,743) Payments to suppliers (202,495) Cash received from others 52,850 Net Cash Provided (Used) by Operating Activities (382,388) Cash Flows from Non -Capital Financing Activities: Cash transfers in 712,204 Net Cash Provided (Used) by Non -Capital Financing Activities 712,204 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (159,412) Net Cash Provided (Used) by Capital and Related Financing Activities (159,412) Cash Flows from Investing Activities: Interest received 21,555 Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities See Notes to Financial Statements 27 21,555 191,959 2,339,339 $ 2,531,298 $ (691,154) 186,143 180,114 1,450 (58,941 308,766 $ (382,388) CITY OF DIAMOND BAR STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2016 Assets: Cash and investments with fiscal agents Total Assets Net Position: Held in trust for other post retirement benefits Total Net Position See Notes to Financial Statements 28 OPEB Trust Fund $ 74,868 $ 74,868 $ 74,868 $ 74,868 CITY OF DIAMOND BAR STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2016 Additions: Contributions from City Total Additions Deductions: Benefits Total Deductions Changes in Net Position Net Position - End of the Year See Notes to Financial Statements 29 OPEB Trust Fund $ 84,761 84,761 9,893 9,893 74,868 $ 74,868 THIS PAGE INTENTIONALLY LEFT BLANK 30 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies a. Description of Reporting Entity The City of Diamond Bar (the City) was incorporated April 18, 1989, as a "General Law" City governed by an elected five -member city council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Diamond Bar (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City of Diamond Bar's elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of: (1) the City (2) organizations for which the City is financially accountable; and, (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit's balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's or when the component unit provides services almost entirely to the City. Blended Component Units The Diamond Bar Public Financing Authority (the Authority) was formed on November 19, 2002. The purpose of the Authority is to issue debt to finance public improvements and other capital purchases for the City and Agency. The activity of the Authority is reported in debt service and capital projects funds. Separate financial statements are not prepared for this blended component unit. b. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The City has no business -type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 31 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to basic financial statements The government -wide financial statements, proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and liabilities (current and long-term) are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year, which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements imposed by the provider have been met. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to departments for services. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, generally only current assets and liabilities are reported in the governmental funds. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures only when payment is due. The City's fiduciary fund consists of a OPEB trust fund. OPEB trust funds are accounted for using the `economic resources" measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. 32 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) Property taxes, taxpayer -assessed taxes, such as sales taxes, gas taxes, and transient occupancy taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period to the extent normally collected within the availability period. All other revenue items are considered to be measurable and available only when cash is received by the City. The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity with a self -balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. As a general rule, the effect of Interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating contributions and grants, and 3) capital contributions and grants, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. d. Fund Classifications The City reports the following major governmental funds: The General Fund is the primary operating fund of the City and is used to account for all revenues and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Public Works, Building and Safety, and Parks and Recreation. The Transportation Grant Fund (MAP -21) has been classified as a major fund and is used to account for projects related to the City's arterial rehabilitation activity. The revenues in this fund have been allocated by the Federal Surface Transportation Program, which was created by the federal government to fund various improvements to the nation's streets and roads. The Capital Improvement Fund has been classified as a major fund and is used to account for City capital improvement projects. The revenues in this fund will generally come from transfers in from other funds and have been identified for specific capital projects. The City's fund structure also includes the following fund types: Debt Service Funds are used to account for the receipt of revenues and payments of debt service related to outstanding bonds. 33 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) Additionally, the City reports the following fund types: Internal Service Funds have been established to finance and account for goods and services provided by one City department to other City departments or agencies. These activities include self-insurance, equipment, building maintenance and computer maintenance. OPEB Trust Fund has been established to account for the prefunding of the City's obligation of postemployment benefits other than pensions (OPEB). e. Investments For financial reporting purposes, investments are stated at fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balances. f. Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity (an original maturity date of three months or less from the date of purchase) that they present insignificant risk of changes in value because of changes in interest rates. Cash and cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City. All cash and investments of the proprietary (internal service) funds are pooled with the City's pooled cash and investments and are therefore considered cash equivalents for purposes of the statement of cash flows. g. Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of contribution. Capital asset purchases (other than infrastructure) in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Capital assets include additions to public domain (infrastructure), certain improvements including roads, streets, sidewalks, medians and storm drains within the City. 34 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government -wide and Proprietary Fund Financial Statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The lives used for depreciation purposes of each capital asset class are: Buildings and improvements 10 - 20 years Furniture and fixtures 3 - 5 years Vehicles 5 years Infrastructure 10 - 50 years Equipment 5 — 20 years h. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has one item that qualifies for reporting in this category. It is deferred outflows relating to the net pension obligation reported in the government -wide statement of net position. These outflows are the results of contributions made after the measurement period, adjustments due to difference in proportions, and the difference between actual contributions made and the proportionate share of the risk pool's total contributions, and differences between expected and actual experiences. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The government has one item which arises under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grant revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the government has an item that qualifies for reporting in this category which relate to deferred inflows relating to the net pension obligation reported in the government -wide statement of net position. These inflows are the result of the net difference between projected and actual earnings on pension plan investments, changes in employer's proportion and difference between the employer's contributions and the employer's proportionate share of contributions, and adjustments due to difference in proportions. These amounts are deferred and amortized straight-line over a five-year period or over the remaining service life. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. 35 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. k. Compensated Absences Vacation and sick leave time begin to accumulate as of the first day of employment to a maximum of 360 hours and 280 hours, respectively. Employees who accumulate sick leave in excess of 200 hours are paid for the excess annually at one half the employees current wage rate. A liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. A liability is recorded for unused sick leave balances only to the extent that it's probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payments, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. If an employee retires, resigns, or terminates in good standing with a minimum of five years of service, the employee is entitled to receive 100% of unused sick leave at one half the employees current wage rate. Compensated absences will be reported in government funds only if they have matured, such as upon retirement. I. Pension Plan For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CaIPERS' website under Forms and Publications. m. Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1 % of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received from the County within 60 days after year end. 36 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) Property taxes are assessed and collected each fiscal year according to the following property tax calendar: Lien date Levy date Due dates Collection dates Delinquent dates n. Use of Estimates January 1 July 1 November 1 - 1st installment February 1 - 2nd installment December 10 - 1st installment April 10 - 2nd installment December 11 - 1 st installment April 11 - 2nd installment The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. o. Fund Equity In the fund financial statements, government funds report the following fund balance classification: • Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. • Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. • Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution. • Assigned include amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor committed. The Director of Finance is authorized to assign amounts to a specific purpose, which was established by the governing body in resolution. • Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes. 37 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 1: Reporting Entity and Significant Accounting Policies (Continued) An individual gover2nmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. Note 2: Cash and Investments As of June 30, 2016, cash and investments were reported in the accompanying financial statements as follows: Statement of Net Position Cash and investments $ 34,317,512 Cash and investments with fiscal agents 29 Statement of Fiduciary Net Position: Cash and investments with fiscal agents 74,868 $ 34,392,409 Cash and investments held by the City at June 30, 2016, consisted of the following: Cash and cash equivalents: Imprest cash on hand $ 2,150 Demand deposits 802,266 Total Cash and cash equivalents 804,416 Investments: United States Government Sponsored Enterprise Securities 12,806,614 Certificates of Deposit 9,698,398 Corporate Bonds 514,439 Municipal Bonds 3,211,599 Local Agency Investment Fund 7,282,046 Held by fiscal agents: OPEB Trust 74,868 Money Market Mutual Funds 29 Total Investments and held by fiscal agents 33,587,993 $ 34,392,409 Investments Authorized by the California Government Code and the Citv's Investment Pol The following table identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address' interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. 38 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 2: Cash and Investments (Continued) (1) Notes must be rated "A" or better N/A - Not Applicable Investments Authorized by Debt Aareements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type United States Treasury Obligations United States Government Sponsored Enterprise Securities Banker's Acceptance Time Certificate of Deposits Local Agency Investment Fund Money Market Funds Repurchase Obligations Tax Exempt Taxable Government Money Market Portfolios 39 Maximum Maximum Percentage Maturity of Portfolio None None None 1 year None None None 30 days None 10% None None None None None Equal to six months of principal and interest in the bonds Maximum Investment in None None None None None None None None Maximum Maximum Maximum Percentage of Investment in Authorized Investment Type Maturity Portfolio One Issuer United States Treasury Obligations 5 years None None United States Government Sponsored Enterprise Securities 5 years None None Banker's Acceptance 180 days 40% 30% Time Certificates of Deposits 5 years 30% $ 250,000 Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Money Market Mutual Funds 5 years 15% None Repurchase Agreements 1 year None None Medium -Term Corporate Notes (1) 5 year 30% 5% Local Agency Investment Fund (LAIF) N/A None $ 50,000,000 (1) Notes must be rated "A" or better N/A - Not Applicable Investments Authorized by Debt Aareements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type United States Treasury Obligations United States Government Sponsored Enterprise Securities Banker's Acceptance Time Certificate of Deposits Local Agency Investment Fund Money Market Funds Repurchase Obligations Tax Exempt Taxable Government Money Market Portfolios 39 Maximum Maximum Percentage Maturity of Portfolio None None None 1 year None None None 30 days None 10% None None None None None Equal to six months of principal and interest in the bonds Maximum Investment in None None None None None None None None CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 2: Cash and Investments (Continued) Disclosures Relatinq to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type US Government Sponsored Securities Certificate of Deposits Corporate Bonds Municipal Bonds Local Agency Investment Fund (LAIF) Held by Fiscal Agents: CaIPERS - CERBT Strategy 3 Money Market Mutual Funds Disclosures Relating to Credit Risk Remaining Maturity (in Months) Total as of 12 Months or Investment Type Less 1 - 3 years 3 - 5 years Total $ 2,000,985 $ 4,301,048 $ 6,504,581 $ 12,806,614 498,021 3,416,509 5,783,868 9,698,398 - - 514,439 514,439 - 1,280,740 1,930,859 3,211,599 7,282,046 - - 7,282,046 74,868 - - 74,868 9a - - 90 $ 9,855,949 $ 8,998,297 $ 14,733,747 $ 33,587,993 Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Moody's, as of year-end for each investment type: 40 Total as of Investment Type June 30,2016 Aaa Aa Unrated US Government Sponsored Securities $ 12,806,614 $ 12,806,614 $ - $ - Certificate of Deposits 9,698,398 9,698,398 - - Corporate Bonds 514,439 - 514,439 Municipal Bonds 3,211,599 - 3,211,599 Local Agency Investment Fund (LAIF) 7,282,046 - - 7,282,046 Held by Fiscal Agents: CaIPERS - CERBT Strategy 3 74,868 - 74,868 Money Market Mutual Funds 29 - - 29 Total $ 33, 587, 993 $ 22, 505, 012 $ 3,726,038 $ 7,356,943 40 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 2: Cash and Investments (Continued) Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs." The City has the following recurring fair value measurements as of June 30, 2016: Investments by fair value level Certificate of Deposit Corporate Bonds Municipal Bonds Local Agency Investment Fund U.S. Federal Agency Securities Cash with Fiscal Agents CaIPERS - CERBT Strategy 3 Totals Investments measured at amortized cost Level Totals 1 2 _ $ 9,698,398 $ 9,698,398 $ - $ 514,439 514,439 3,211,599 3,211,599 7,282,046 - 7,282,046 12,806,614 - 12,806,614 74,868 74,868 - 33,587,964 $13,424,436 $ 20,163,528 $ - Cash with Fiscal Agents Money Market Funds 29 Totals 29 Total Investments $ 33,587,993 Deposits and securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Local Agency Investment Funds classified in Level 2 of the fair value hierarchy are valued using specified fair market value factors. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes. Disclosures Relating to Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City does not accept 150% of the secured public totals. At June 30, 2016, the City deposits 41 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 2: Cash and Investments (Continued) (bank balances) were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California Law. The cash and investments held by Bond Trustee are uninsured and uncollateralized. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Note 3: Interfund Transfers and Due To/From Other Funds Transfers In Transfer Out Amount Internal Service Funds General Fund $ 712,204 Capital Improvement Fund General Fund 1,258,092 Other Governmental Funds General Fund 1,256,385 Capital Improvement Fund Transportation Grant Fund 1,455,643 Capital Improvement Fund Other Governmental Funds 2,118,586 General Fund Other Governmental Funds 1,199,015 $ 7,999,925 Transfers to the General Fund from the Other Governmental Funds were made to reimburse the General Fund for various capital projects and administrative expenditures. Transfers to the Capital Improvement Fund from the General Fund, Transportation Grant Fund and Other Governmental Funds were made to pay for various capital projects. Transfers from the General Fund to the Other Governmental Funds were made to fund various capital improvement projects, the City general plan revision, a fund deficit and debt service payments. Transfers from Other Governmental Funds to Other Governmental Funds were made to fund various capital improvement projects. Transfers from the Other Governmental Funds to the Internal Service Funds were made to fund the self-insurance, equipment replacement, computer equipment replacement and building facility maintenance. Due from other funds Due to other funds Amount General Fund Transportation Grant Fund $ 923,982 General Fund Other Governmental Funds 8,939 $ 932,921 Short-term borrowings were made from the General Fund to the Transportation Grant Fund and Other Governmental Funds due to negative cash. This is expected to be repaid in the immediate future with reimbursements. 42 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 4: Capital Assets A summary of changes in the Governmental Activities capital assets at June 30, 2016, is as follow: Depreciation expense was charged to functions in the Statement of Activities as follows: General government $ 719,140 Public safety 14,294 Highways and streets 4,778,653 Parks, recreation and culture 1,815,614 Internal Service Funds depreciation charges to program 186,143 $ 7,513,844 Note 5: Long -Term Liabilities Long-term liability activity for the year ended June 30, 2016, was as follows: Balance July 1, 2015 Balance at Due Within Additions Deletions June 30, 2016 One Year Bonds payable Revenue Bonds $ 10,420,000 $ - $ 385,000 $ 10,035,000 $ 400,000 Compensated Absences 602,690 391,887 416,379 578,198 399,458 Total $ 11,022,690 $ 391,887 $ 801,379 10,613,198 $ 799,458 Net unamortized bond premium 187,349 Net Long -Term Debt $ 10,800,547 43 Balance at Adjusted Balance Balance at July 1, 2015 Adjustments July 1, 2015 Transfers Additions Deletions June 30, 2016 Capital assets not being depreciated: Land $ 5,633,624 $ $ 5,633,624 $ $ $ $ 5,633,624 Right of way 265,614,104 265,614,104 265,614,104 Construction in progress 4,472,100 (2,115,800) 2,356,300 (1,345,432) 3,336,386 4,347,254 Total Capital Assets Not being Depreciated 275,719,828 (2,115,800) 273,604,028 (1,345,432) 3,336,386 275,594,982 Capital assets being depreciated: Buildings and improvements 40,969,762 40,969,762 1,144,381 124,446 42,238,589 Furniture and fixtures 1,607,645 - 1,607,645 - - - 1,607,645 Vehicles and equipment 2,574,289 - 2,574,289 - 206,062 96,444 2,683,907 Infrastructure 190,645,283 190,645,283 201,051 190,846,334 Total Capital Assets being Depreciated 235,796,979 235,796,979 1,345,432 330,508 96,444 237,376,475 Less accumulated depreciation for: Buildings and improvements 20,732,650 20,732,650 - 2,269,174 - 23,001,824 Furniture and fixtures 999,945 999,945 315,500 - 1,315,445 Vehicles and equipment 1,648,307 - 1,648,307 - 197,265 96,444 1,749,128 Infrastructure 108,734,529 108,734,529 4,731, 905 113,466,434 Total Accumulated Depreciation 132,115,431 132,115,431 7,513,844 96,444 139,532,831 Total Capital Assets Being Depreciated, Net 103,681,548 103,681,548 1,345,432 (7,183,336) 97,843,644 Governmental Activities Capital Assets, Net $ 379,401,376 $ (2,115,800) $ 377,285,576 $ $ (3,846,950) $ $ 373,438,626 Depreciation expense was charged to functions in the Statement of Activities as follows: General government $ 719,140 Public safety 14,294 Highways and streets 4,778,653 Parks, recreation and culture 1,815,614 Internal Service Funds depreciation charges to program 186,143 $ 7,513,844 Note 5: Long -Term Liabilities Long-term liability activity for the year ended June 30, 2016, was as follows: Balance July 1, 2015 Balance at Due Within Additions Deletions June 30, 2016 One Year Bonds payable Revenue Bonds $ 10,420,000 $ - $ 385,000 $ 10,035,000 $ 400,000 Compensated Absences 602,690 391,887 416,379 578,198 399,458 Total $ 11,022,690 $ 391,887 $ 801,379 10,613,198 $ 799,458 Net unamortized bond premium 187,349 Net Long -Term Debt $ 10,800,547 43 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Long -Term Liabilities (Continued) Bonds Pavable In December 2002, the Diamond Bar Public Financing Authority issued $13,755,000 of 2002 Series A Variable Rate Lease Revenue Bonds to finance the construction of a community/senior center project and other public improvements within the City. The bonds are special limited obligations of the Authority payable solely from revenues, consisting primarily of base rental payments paid by the City. The variable interest rate on the bonds are reset on a bi-weekly basis. In conjunction with the Bonds, the Authority executed a rate cap agreement on December 2, 2002, (the Agreement) with JPMorgan Chase (Counterparty) to minimize debt service cost on the 2002 Lease Revenue Bonds (the Bonds) by setting a cap on the interest rate on the Bonds. Under the Agreement, the Counterparty will pay the Authority an amount equal to the product of: (i) the amount by which the floating rate exceeds 4.5%, (ii) the notional principal amount and (iii) the actual number of days in the calculation period divided by 365 days. The Agreement is for a notional amount equal to the outstanding principal amount of the Bonds and will decline as the principal amount declines. The Agreement terminated on January 1, 2013. Credit Risk The Counterparty, JPMorgan Chase, has the following credit ratings of: (i) Standard & Poor's, AA- and (ii) Moody's, Aa2. Refinancing of the 2002 Series A Lease Revenue Bonds (Community/Senior Center Project) The 2002 Series A Lease Revenue Bonds were originally issued on December 19, 2002, in the aggregate principal amount of $13,755,000. Since the date of their initial issuance, the Bonds have borne interest at a Weekly Rate and the regularly scheduled payments of principal of and interest on the Bonds have been payable from the proceeds of draws upon an irrevocable direct -pay letter of credit issued by Union Bank, N.A., formerly known as Union Bank of California, N.A. On December 1, 2011, these Bonds were refinanced and $12,190,000 was defeased. Subsequently, $11,790,000 in Bonds were issued with the interest rate converted from a Weekly Rate to a Fixed Rate. The fixed rates range from 3.00% to 5.00% throughout the life of the bond. 44 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 5: Long -Term Liabilities (Continued) Payments and Associated Debt As of June 30, 2016, debt service requirements of the Bonds and the Counterparty's payments, assuming current interest rates remain the same for remainder of the term of the Agreement, are as follows. Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $578,198 at June 30, 2016, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Note 6: Liability, Property and Workers' Compensation Protection The City of Diamond Bar is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine -member Executive Committee. 45 Fixed Rate Debt Year Ending June 30 Principal Interest Total 2017 $ 400,000 $ 455,906 $ 855,906 2018 420,000 435,906 855,906 2019 440,000 414,906 854,906 2020 460,000 397,306 857,306 2021 485,000 378,906 863,906 2022-2026 2,780,000 1,526,569 4,306,569 2027-2031 3,500,000 864,588 4,364,588 2031-2033 1,550,000 109,013 1,659,013 Totals $ 10.035.000 $ 4.583.100 $ 14,618.100 Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $578,198 at June 30, 2016, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Note 6: Liability, Property and Workers' Compensation Protection The City of Diamond Bar is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine -member Executive Committee. 45 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Liability, Property and Workers' Compensation Protection (Continued) a. Self -Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Retrospective adjustments are scheduled to continue indefinitely on coverage years 2012-13 and prior, until all claims incurred during those coverage years are closed, on a pool -wide basis. This subsequent cost re -allocation among members, based on actual claim development, can result in adjustments of either refunds or additional deposits required. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is estimated using actuarial models and pre -funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk -sharing pool. Additional information regarding the cost allocation methodology is provided below. Liability In the liability program claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. 46 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Liability, Property and Workers' Compensation Protection (Continued) For 2015-16 the Authority's pooled retention is $2 million per occurrence, with reinsurance to $20 million, and excess insurance to $50 million. The Authority's reinsurance contracts are subject to the following additional pooled retentions: (a) $2.5 million annual aggregate deductible in the $3 million x/s $2 million layer, and (b) $3 million annual aggregate deductible in the $5 million x/s $10 million layer. There is a third annual aggregate deductible in the amount of $2.5 million in the $5 million x/s $5 million layer, however it is fully covered under a separate policy and therefore not retained by the Authority. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence losses have a sub -limit of $30 million per occurrence. Workers' Compensation In the workers' compensation program claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is valuated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2015-16, the Authority's pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to $10 million are pooled among members. 47 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 6: Liability, Property and Workers' Compensation Protection (Continued) b. Purchased Insurance Pollution Legal Liability Insurance The City of Diamond Bar participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Diamond Bar. Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3 -year period from July 1, 2014 through July 1, 2017. Each member of the Authority has a $10 million sublimit during the 3 -year term of the policy. Property Insurance The City of Diamond Bar participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Diamond Bar property is currently insured according to a schedule of covered property submitted by the City of Diamond Bar to the Authority. City of Diamond Bar property currently has all-risk property insurance protection in the amount of $35,246,271. There is a $5,000 deductible per occurrence except for non -emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Earthquake and Flood Insurance The City of Diamond Bar purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Diamond Bar property currently has earthquake protection in the amount of $0. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Crime Insurance The City of Diamond Bar purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments. c. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2015-16. 48 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Pension Rate Plans Rate Plan Description All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous (all other) Employee Pension Rate Plans, cost-sharing multiple employer defined benefit pension rate plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension rate plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to rate plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following: The Optional Settlement 2W Death Benefit or the Lump Sum Death Benefit. The cost of living adjustments for each rate plan are applied as specified by the Public Employees' Retirement Law. The Rate Plans' provisions and benefits in effect at June 30, 2016, are summarized as follows: Hire dates Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a percentage of eligible compensation Required employee contribution rates Required employer contribution rates Miscellaneous* Misc. PEPRA January 1, 2013 and Prior to January 1, 2013 thereafter 2% @55 2% @62 5 years of service 5 years of service monthly for life monthly for life Minumum 50 yrs Minumum 52 yrs 1.425% - 2.418%, 1.000% - 2.500%, 50 yrs - 63+ yrs, 52 yrs - 67+ yrs, respectively respectively 6.891% 6.250% 11.082% 6.237% * Miscellaneous rate plan is closed to new entrants. Contributions Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total rate plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 49 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Pension Rate Plans (Continued) For the year ended June 30, 2016, the employer contributions recognized as a reduction to the Net Pension Liability for each Rate Plan were $391,678 and $11,875 for the Miscellaneous Rate Plan and the Miscellaneous PEPRA Rate Plan, respectively. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2016, the City reported net pension liabilities(assets) for its proportionate shares of the net pension liability(assets) of each Rate Plan as follows: Miscellaneous PEPRA Total Net Pension Liability Proportionate Share of Net Pension Liability $ 3,337,790 (230) $ 3,337,560 The City's net pension liability for each Rate Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Rate Plans is measured as of June 30, 2015, and the total pension liability for each Rate Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014, rolled forward to June 30, 2015, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for each Rate Plan as of June 30, 2014 and 2015, was as follows: Proportion - June 30, 2014 Proportion - June 30, 2015 Change - Increase (Decrease) 50 Miscellaneous Miscellaneous PEPRA 0.12979% 0.12166% -0.00813% 0.00000% -0.00001% -0.00001% CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Pension Rate Plans (Continued) For the year ended June 30, 2016, the City recognized pension expense of $(684,390). At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Plan Difference between expected and actual experience Net Difference between projected and acutal earnings on pension plans investments Adjustment due to difference in proportions Change in assumptions Change in employer's proportion and differences between the employer's contributios and the employer's proportionate share of contributions Current year contributions that occurred after the measurement date of June 30, 2015 SubTotal Deferred Outflows of Deferred Inflows of Resources Resources $ 29,942 $ - - 142,012 676,232 373 283,280 3,249 77,823 460,471 - $ 1,169,894 $ 503,488 $460,471 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Miscellaneous Plan 51 Deferred Year ended Outflows/(Inflows) of June 30: Resources 2017 $ 22,709 2018 19,188 2019 (17,486) 2020 181,524 51 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Pension Rate Plans (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2015 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2014 total pension liability. The June 30, 2014 and the June 30, 2015, total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.65% 2.75% Varies by Entry Age and Service 7.65% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CaIPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on CaIPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. All other actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CaIPERS' website under Forms and Publications. Change of Assumptions GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate was changed from 7.50 percent (net of administrative expense in 2014) to 7.65 percent as of the June 30, 2015 measurement date to correct the adjustment which previously reduced the discount rate for administrative expense. Discount Rate The discount rate used to measure the total pension liability was 7.65 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.65 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CaIPERS' website under the GASB 68 section. 52 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Pension Rate Plans (Continued) The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1 - 10 (1) Years 11+ (2) Global Equity 51.0% 5.25% 5.71% Global Fixed Income 19.0 0.99 2.43 Inflation Sensitive 6.0 0.45 3.36 Private Equity 10.0 6.83 6.95 Real Estate 10.0 4.50 5.13 Infrastructure and Forestland 2.0 4.50 5.09 Liquidity 2.0 (0.55) (1.05) (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 53 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 7: Pension Rate Plans (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 7.65 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage -point lower (6.65 percent) or 1 percentage -point higher (8.65 percent) than the current rate: Miscellaneous and PEPRA Rate Plan Discount Rate - 1 % Current Discount Rate Discount Rate +1 % (6.65%) (7.65%) (8.65%) Plan's Net Pension Liability/(Assets) $ 6,085,703 $ 3,337,560 $ 1,068,648 Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Note 8: Post -Employment Benefits Other than Pensions Annual OPEB Cost and Net OPEB Obligation The City's annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period not to exceed thirty years. Funding PolicV The City sets its monthly contribution rates for health insurance on behalf of all eligible retirees according to the PERS Health Program's statutory minimum ($122/month for calendar 2015 and $125/month for calendar 2016, increased in all future years according to the rate of medical inflation). The City pays a 0.32% of premium administrative charge on behalf of all retirees. The City is currently funding this OPEB obligation on a pay-as-you-go basis usually using available resources in the general fund. For the year ended June 30, 2016, the City paid $7,410 in health care costs for its retirees and their covered dependents. 54 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 8: Post -Employment Benefits Other than Pensions (Continued) The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the PERS Health Program: Annual required contribution $ 84,761 Interest on net OPEB obligation 13,087 Adjustment to annual required contribution (25,759) Annual OPEB cost (expense) 72,089 Contributions made 92,171 Increase in net OPEB obligation (20,082) Net OPEB obligation - beginning of year 436,244 Net OPEB obligation - end of year $ 416,162 Three -Year Trend Information For fiscal year 2016, the City's annual OPEB cost (expense) $72,089 was equal to the ARC. Information on the annual OPEB costs, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation is only available for two fiscal years, as presented below: Funded Status and Funding Progress Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time Percentage of actuarial accrued liabilities for benefits. The information is as of the latest actuarial Fiscal Year Annual OPEB Actual Annual OPEB Costs Net OPEB Ended Costs Contributions Contributed Obligation 6/30/14 $ 70,389 $ 7,972 11.33% $ 369,104 6/30/15 73,775 6,635 8.99% 436,244 6/30/16 72,089 92,171 127.86% 416,162 Funded Status and Funding Progress Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation. Unfunded UAAL as a Actuarial Actuarial Actuarial Percent of Type of Valuation Value of Accrued Funded Covered Covered Interest Valuation Date Assets Liability Ratio Payroll Payroll Rate Actual 7/1/2014 $ - $ 596,261 0.0% $ 4,293,708 13.89% 5.00% Actual 7/1/2015 - 556,098 0.0% 4,376,116 12.71% 6.00% 55 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 8: Post -Employment Benefits Other than Pensions (Continued) Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and the plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long-term perspective of the calculations. In the July 1, 2015, actuarial valuation, the projected unit credit method was used. The actuarial assumptions included a discount rate of 6.0% per annum, a rate of return on assets of 6.0% per annum and a healthcare cost trend rate of 3.5% for medical and a healthcare cost trend rate of 7.0% for Rx initially, reduced by annual decrements of 1.0% to an ultimate rate of 5.0% after three years. The City's unfunded actuarial accrued liability will be amortized as a level dollar over an open period of 30 years. Note 9: Classification of Net Position and Fund Balance Details of the fund balance classifications at June 30, 2016, are as follows: Restricted for Community Development Projects: Integrated Waste Management $ 1,221,180 Beverage Center Recycling 51,569 Used Oil Block Grant 15,571 Park and Facility Development 920,448 PEG Fees 173,899 Total 2,382,667 Restricted for Public Safety: COPS 161,997 CLEEP 31,944 Total 193,941 Restricted for Public Works: State Gas Tax 369,602 Proposition A Transit 961,323 Proposition C Transit 665,015 Traffic Improvement 1,519,317 Sewer Mitigation 109,506 Landscape Maintenance District 33,753 Measure R Local Return 728,689 Waste Hauler 77,818 Total 4,465,023 Restricted for Capital Projects: Air Quality Improvement 267,984 Total 267,984 Restricted for Debt Service: 29 Total Restricted Funds $ 7,309,644 56 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2016 Note 10: Contingencies The City is presently involved in other matters of litigation that have arisen in the normal course of the City's business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to have a material adverse financial impact on the City. Note 11: Construction Commitments No material construction commitments existed at June 30, 2016. Note 12: Net Position Restatement Beginning Net Position has been restated by $2,115,800 related to the correction of the valuation of construction in progress. 57 THIS PAGE INTENTIONALLY LEFT BLANK 58 REQUIRED SUPPLEMENTARY INFORMATION 59 THIS PAGE INTENTIONALLY LEFT BLANK .c CITY OF DIAMOND BAR NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2016 Note 1: Stewardship, Compliance and Accountability a. Budgetary Data General Budget Policies The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City manager or his designee is authorized to transfer budgeted amounts between the accounts of any department or funds that are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Budget Basis of Accounting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). 61 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE GENERALFUND YEAR ENDED JUNE 30, 2016 62 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 22,232,546 $ 22,232,546 $ 22,232,546 $ - Resources (Inflows): Taxes 11,449,440 11,951,440 12,930,081 978,641 Licenses and permits 2,627,534 3,673,586 3,183,449 (490,137) Intergovernmental 5,313,400 5,411,143 5,411,926 783 Charges for services 1,833,599 1,751,949 1,689,328 (62,621) Use of money and property 199,400 265,400 492,443 227,043 Fines and forfeitures 552,500 550,000 470,722 (79,278) Miscellaneous 113,225 169,225 177,449 8,224 Transfers in 1,960,069 2,070,234 1,199,015 (871,219) Amounts Available for Appropriations 46,281,713 48,075,523 47,786,959 (288,564) Charges to Appropriation (Outflow): General government City Council 186,394 186,394 179,505 6,889 City Attorney 250,000 240,000 219,250 20,750 City Manager/Clerk 1,127,162 1,485,514 1,286,918 198,596 Finance 670,296 674,596 661,578 13,018 Human resources 321,251 321,251 301,060 20,191 Information systems 977,112 1,000,062 959,469 40,593 General government 327,770 343,770 351,166 (7,396) Public information 699,049 727,614 632,212 95,402 Civic Center 489,149 537,749 500,219 37,530 Contribution to OPEB trust - - 84,761 (84,761) Subtotal general government 5,048,183 5,516,950 5,176,138 340,812 Public safety Law Enforcement 6,329,116 6,329,116 5,974,462 354,654 Fire Protection 7,500 7,500 7,359 141 Animal Control 130,782 130,782 130,174 608 Emergency preparedness 61,900 88,550 85,290 3,260 Subtotal public safety 6,529,298 6,555,948 6,197,285 358,663 Community development Comm. Dev. & PI. Adm. 763,616 764,616 594,299 170,317 Building and Safety 662,228 835,553 749,021 86,532 Neigh.lmprv. 317,576 317,576 291,977 25,599 Eco. Devel. 369,436 302,974 152,136 150,838 Subtotal community development 2,112,856 2,220,719 1,787,433 433,286 Parks, recreation, and culture Comm. Srvcs. Adm. 329,668 329,568 329,120 448 Diamond Bar Ctr. 1,037,245 1,039,259 1,025,187 14,072 Park Operations 1,086,684 1,065,784 1,010,542 55,242 Recreation 2,036,970 1,976,862 1,795,957 180,905 Subtotal parks, recreation, and culture 4,490,567 4,411,473 4,160,806 250,667 Highways and streets Public Works 918,347 975,922 841,933 133,989 Engineering 445,361 583,840 367,311 216,529 Road Maint. 1,736,220 1,748,282 1,688,653 59,629 Landscape Maint. 184,205 237,140 235,433 1,707 Subtotal highways and streets 3,284,133 3,545,184 3,133,330 411,854 Capital outlay 144,828 265,839 178,477 87,362 Transfers out 5,300,522 5,490,592 3,226,681 2,263,911 Total Charges to Appropriations 26,910,387 28,006,705 23,860,150 4,146,555 Budgetary Fund Balance, June 30 $19,371,326 $ 20,068,818 $ 23,926,809 $ 3,857,991 62 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRANSPORTATION GRANT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 363 $ 363 $ 363 $ - 4,372,865 4,902,124 531,298 (4,370,826) 4,373,228 4,902,487 531,661 (4,370,826) 4,372,865 4,902,124 1,455,643 3,446,481 4,372,865 4,902,124 1,455,643 3,446,481 Budgetary Fund Balance, June 30 $ 363 $ 363 $ (923,982) $ (924,345) 63 CITY OF DIAMOND BAR SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (2) 2015 2016 Proportion of the Net Pension Liability Miscellaneous Plan Miscellaneous - PEPRA Plan Proportionate Share of the Net Pension Liability Miscellaneous Plan Miscellaneous - PEPRA Plan Covered -Employee Payroll Miscellaneous Plan Miscellaneous - PEPRA Plan Proportionate Share of the Net Pension Liability as Percentage of Covered -Employee Payroll Miscellaneous Plan Miscellaneous - PEPRA Plan Total Miscellaneous Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 0.05155% 0.01051% 0.00000% 0.00000% $ 3,207,627 $ 3,337,790 42 (230) $ 4,266,252 $ 4,421,461 109,864 130,250 75.19% 75.49% 0.04% -0.18% 81.15% 78.40% Notes to Schedule: Benefit Changes: None Changes of Assumptions: Discount rate change from 7.50% to 7.65°/x. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only two years are shown. 64 CITY OF DIAMOND BAR SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (2) Actuarially Determined Contribution Miscellaneous Plan Miscellaneous - PEPRA Plan Contribution in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered -Employee Payroll Contributions as a Percentage of Covered -Employee Payroll 2015 2016 $ 391,678 $ 452,347 11,875 8,124 (403,553) (460,471) $ 4,376,116 $ 4,551,711 9.22% 10.12% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only two years are shown. Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial Cost Method Amortization method Assets valuation method Discount Rate Projected Salaray Increases Inflation Payroll Growth Individual Salary Growth June 30, 2013 Entry Age Normal Cost Method Level Percent of Payroll Market value 7.5% (net of administrative expenses) 3.30% to 14.20% depending on Age, Service, and type of employment. 2.75% 3.00% A merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75% and an annual production growth of 0.25%. 65 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Total Fund Balances Special Revenue Funds Integrated Waste Traffic State Gas Tax Proposition A Proposition C Management Improvement Fund Transit Fund Transit Fund Fund Fund $ 369,602 $ 1,070,200 $ 715,387 $ 1,122,105 $ 1,527,734 - - - 127,523 - $ 369,602 $ 1,070,200 $ 715,387 $ 1,249,628 $ 1,527,734 $ - $ 105,678 $ 49,042 $ 11,479 $ - - 3,199 1,330 16,969 - - - - 8,417 108,877 50,372 28,448 8,417 - - - 1,221,180 - 369,602 961,323 665,015 - 1,519,317 369,602 961,323 665,015 1,221,180 1,519,317 Total Liabilities and Fund Balances $ 369,602 $ 1,070,200 $ 715,387 $ 1,249,628 $ 1,527,734 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities - - - Unearned revenues - - - - - Due to other governments - - - - Due to other funds - - - Total Liabilities - - - - - Fund Balances: Restricted for: Community development projects - - - - 51,569 Public safety - - - Highways and streets 109,506 - - Capital Projects - 267,984 Debt service - - - - Total Fund Balances 109,506 267,984 - - 51,569 Total Liabilities and Fund Balances $ 109,506 $ 267,984 $ - $ - $ 51,569 67 Special Revenue Funds Beverage Sewer Air Quality Center Mitigation Improvement Trails & MTA Grant Recycling Fund Fund Bikeways Fund Fund Grant Fund Assets: Pooled cash and investments $ 109,506 $ 248,595 $ - $ - $ 51,569 Receivables: Accounts - - - - - Notes and loans - - - - Due from other governments - 19,389 - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 109,506 $ 267,984 $ - $ - $ 51,569 Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities - - - Unearned revenues - - - - - Due to other governments - - - - Due to other funds - - - Total Liabilities - - - - - Fund Balances: Restricted for: Community development projects - - - - 51,569 Public safety - - - Highways and streets 109,506 - - Capital Projects - 267,984 Debt service - - - - Total Fund Balances 109,506 267,984 - - 51,569 Total Liabilities and Fund Balances $ 109,506 $ 267,984 $ - $ - $ 51,569 67 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds Park and Used Oil Facility Block Grant Development Fund Fund CDBG Fund COPS Fund CLEEP Fund $ 16,654 $ 985,667 $ - $ 161,997 $ 31,944 - - 345,592 - - 14,883 $ 16,654 $ 985,667 $ 360,475 $ 161,997 $ 31,944 $ 1,083 $ - $ 5,944 $ $ - 65,219 - - 345,592 - - 8,939 1,083 65,219 360,475 - - 15,571 920,448 - - - - 161,997 31,944 15,571 920,448 - 161,997 31,944 $ 16,654 $ 985,667 $ 360,475 $ 161,997 $ 31,944 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 (CONTINUED) Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Total Fund Balances Special Revenue Funds Landscape Measure R Maintenance Local Return PEG Fees Waste Hauler District Fund Fund Fund Fund $ 115,271 $ 728,689 $ 149,508 $ 47,061 - - 24,391 30,757 11,694 - - - $ 126,965 $ 728,689 $ 173,899 $ 77,818 $ 89,986 $ 3,226 93,212 - - 173,899 - 33,753 728,689 - 77,818 33,753 728,689 173,899 77,818 Total Liabilities and Fund Balances $ 126,965 $ 728,689 $ 173,899 $ 77,818 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2016 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Total Fund Balances Total Liabilities and Fund Balances 70 Debt Service Public Total Financing Governmental Authority Funds $ $ 7,451,489 182,671 345,592 45,966 $ 29 $ 8,025,747 $ $ 263,212 24,724 73,636 345,592 8,939 716,103 2,382,667 193,941 4,465,023 - 267,984 29 29 29 7,309,644 $ 29 $ 8,025,747 THIS PAGE INTENTIONALLY LEFT BLANK 71 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) 1,228,609 1,908,349 853,884 543,017 83,179 - - 430,469 - 71,625 - - - 1,263,497 386,488 - - 14,500 - 824 - 1,349,622 386,488 431,293 - 1,228,609 558,727 467,396 111,724 83,179 300,702 (1,633,593) - (207,185) (60,066) (195,489) (1,633,593) - (207,185) (60,066) 105,213 Net Change in Fund Balances (404,984) Special Revenue Funds 260,211 51,658 188,392 Fund Balances, Beginning of Year 774,586 Integrated 404,804 1,169,522 1,330,925 Fund Balances, End of Year $ 369,602 $ Waste Traffic $ 1,221,180 State Gas Tax Proposition A Proposition C Management Improvement Fund Transit Fund Transit Fund Fund Fund Revenues: Taxes $ $ $ - $ $ - Licenses and permits - 68,350 Intergovernmental 1,222,439 1,018,034 847,210 - Charges for services - 881,565 - 530,210 - Use of money and property 6,170 8,750 6,674 12,807 14,829 Miscellaneous - - - - - Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) 1,228,609 1,908,349 853,884 543,017 83,179 - - 430,469 - 71,625 - - - 1,263,497 386,488 - - 14,500 - 824 - 1,349,622 386,488 431,293 - 1,228,609 558,727 467,396 111,724 83,179 300,702 (1,633,593) - (207,185) (60,066) (195,489) (1,633,593) - (207,185) (60,066) 105,213 Net Change in Fund Balances (404,984) 558,727 260,211 51,658 188,392 Fund Balances, Beginning of Year 774,586 402,596 404,804 1,169,522 1,330,925 Fund Balances, End of Year $ 369,602 $ 961,323 $ 665,015 $ 1,221,180 $ 1,519,317 72 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) 73 Special Revenue Funds Beverage Sewer Air Quality Trails & Center Mitigation Improvement Bikeways MTA Grant Recycling Fund Fund Fund Fund Grant Fund Revenues: Taxes $ $ $ - $ - $ Licenses and permits - - - - Intergovernmental 72,066 117,497 78,502 15,079 Charges for services - - - - - Use of money and property 1,255 2,460 - - 667 Miscellaneous - - - - - Total Revenues 1,255 74,526 117,497 78,502 15,746 Expenditures: Current: General government - - - - - Public safety - - - - Community development - - - 8,388 Parks and recreation - - - - Public works - - - Capital outlay - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures - - - - 8,388 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,255 74,526 117,497 78,502 7,358 Other Financing Sources (Uses): Transfers in - - - - - Transfers out - (13,747) (117,497) (78,502) Total Other Financing Sources (Uses) - (13,747) (117,497) (78,502) - Net Change in Fund Balances 1,255 60,779 - - 7,358 Fund Balances, Beginning of Year 108,251 207,205 - - 44,211 Fund Balances, End of Year $ 109,506 $ 267,984 $ - $ - $ 51,569 73 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Special Revenue Funds Park and Used Oil Facility Block Grant Development Fund Fund CDBG Fund COPS Fund CLEEP Fund - 746,560 - - 15,700 125,018 80,482 114,618 127 4,549 - 2,077 366 15,827 876,127 80,482 116,695 366 - - - 4,700 14,781 - 71,982 - 2,565 14,781 - 71,982 7,265 1,046 876,127 8,500 109,430 366 (115,619) (8,507) (87,783) (115,619) (8,507) (87,783) - Net Change in Fund Balances 1,046 760,508 (7) 21,647 366 Fund Balances, Beginning of Year 14,525 159,940 7 140,350 31,578 Fund Balances, End of Year $ 15,571 $ 920,448 $ - $ 161,997 $ 31,944 74 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 (CONTINUED) Special Revenue Funds Total Revenues Landscape Measure R 99,195 124,080 Expenditures: Maintenance Local Return PEG Fees Waste Hauler Current: District Fund Fund Fund Fund Revenues: - - - - Taxes $ 683,346 $ - $ 97,886 $ - Licenses and permits - - 123,028 Intergovernmental - 633,707 - - Charges for services - - - - Use of money and property - 7,735 1,309 1,052 Miscellaneous 539,465 - - - Total Revenues 1,222,811 641,442 99,195 124,080 Expenditures: 94,317 122,978 Fund Balances, End of Year $ 33,753 $ 728,689 $ Current: 77,818 General government - - - - Public safety - - Community development - - Parks and recreation - - Public works 748,390 - - Capital outlay 539,464 - 19,613 Debt service: Principal retirement - - Interest and fiscal charges - - Total Expenditures 1,287,854 - 19,613 - Excess (Deficiency) of Revenues Over (Under) Expenditures (65,043) 641,442 79,582 124,080 Other Financing Sources (Uses): Transfers in 98,796 - - - Transfers out - (630,373) - (169,240) Total Other Financing Sources (Uses) 98,796 (630,373) - (169,240) Net Change in Fund Balances 33,753 11,069 79,582 (45,160) Fund Balances, Beginning of Year - 717,620 94,317 122,978 Fund Balances, End of Year $ 33,753 $ 728,689 $ 173,899 $ 77,818 75 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 76 Debt Service Funds Public Financing Authority 30 Total Governmental Funds $ 781,232 937,938 4,340,352 1,411,775 70,857 539,465 30 8,081,619 1,150 1,150 - 4,700 - 525,620 - 71,625 - 2,398,375 - 576,966 385,000 385,000 470,741 470,741 856,891 4,434,177 (856,861) 3,647,442 856,887 1,256,385 - (3,317,601) 856,887 (2,061,216) 26 3 $ 29 1,586,226 5,723,418 $ 7,309,644 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE STATE GAS TAX FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 77 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 774,586 $ 774,586 $ 774,586 $ - 1,290,660 1,263,404 1,222,439 (40,965) 3,500 5,500 6,170 670 2,068,746 2,043,490 2,003,195 (40,295) 2,056,416 2,230,919 1,633,593 597,326 2,056,416 2,230,919 1,633,593 597,326 $ 12,330 $ (187,429) $ 369,602 $ 557,031 77 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION A TRANSIT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Charges for services Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks, recreation and culture Highways and Streets Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 78 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 402,596 $ 402,596 $ 402,596 $ - 1,021,564 1,021,564 1,018,034 (3,530) 1,075,000 1,075,000 881,565 (193,435) 6,500 6,500 8,750 2,250 2,505,660 2,505,660 2,310,945 (194,715) 92,500 76,650 71,625 5,025 1,504,630 1,504,630 1,263,497 241,133 14,500 14,500 14,500 - 657,690 630,155 - 630,155 2,269,320 2,225,935 1,349,622 876,313 $ 236,340 $ 279,725 $ 961,323 $ 681,598 78 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION C TRANSIT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Highways and Streets Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 79 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 404,804 $ 404,804 $ 404,804 $ - 847,360 847,360 847,210 (150) 6,000 6,000 6,674 674 1,258,164 1,258,164 1,258, 688 524 578,061 578,061 386,488 191,573 897,600 634,765 207,185 427,580 1,475,661 1,212,826 593,673 619,153 $ (217,497) $ 45,338 $ 665,015 $ 619,677 79 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE INTEGRATED WASTE MANAGEMENT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Charges for services Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 1,169, 522 $ 1,169, 522 Variance with Final Budget Actual Positive Amounts (Negative) $ 1,169,522 $ - 512,000 512,000 530,210 18,210 8,000 10,000 12,807 2,807 1,689,522 1,691,522 1,712,539 21,017 551,227 779,627 430,469 349,158 - - 824 (824) 60,066 60,066 60,066 - 611,293 839,693 491,359 348,334 $ 1,078,229 $ 851,829 $ 1,221,180 $ 369,351 0 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAFFIC IMPROVEMENT FUND YEAR ENDED JUNE 30, 2016 Variance with 81 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,330,925 $ 1,330,925 $ 1,330,925 $ - Resources (Inflows): Licenses and permits 127,681 127,681 68,350 (59,331) Use of money and property 3,000 8,000 14,829 6,829 Transfers in - - 300,702 300,702 Amounts Available for Appropriations 1,461,606 1,466,606 1,714,806 248,200 Charges to Appropriation (Outflow): Highways and streets 16,465 16,465 - 16,465 Transfers out 1,082,035 1,213,480 195,489 1,017,991 Total Charges to Appropriations 1,098,500 1,229,945 195,489 1,034,456 Budgetary Fund Balance, June 30 $ 363,106 $ 236,661 $ 1,519,317 $ 1,282,656 81 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE SEWER MITIGATION FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1, as restated Resources (inflows): Use of money and property Amounts Available for Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 108,251 $ 108,251 $ 108,251 $ - - 1,000 1,255 255 108,251 109,251 109,506 255 Budgetary Fund Balance, June 30 $ 231 $ 1,231 $ 109,506 $ 108,275 82 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 83 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 207,205 $ 207,205 $ 207,205 $ - 65,000 65,000 72,066 7,066 750 1,750 2,460 710 272,955 273,955 281,731 7,776 220,000 220,000 13,747 206,253 220,000 220,000 13,747 206,253 $ 52,955 $ 53,955 $ 267,984 $ 214,029 83 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAILS & BIKEWAYS FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 36,053 36,053 117,497 250 250 - 36,303 36,303 117,497 81,444 (250) 81,194 162,021 130,021 117,497 12,524 162,021 130,021 117,497 12,524 Budgetary Fund Balance, June 30 $ (125,718) $ (93,718) $ - $ 93,718 84 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MTA GRANT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 85 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 2,361,266 2,361,266 78,502 (2,282,764) 2,361,266 2,361,266 78,502 (2,282,764) 2,361,266 2,366,261 78,502 2,287,759 2,361,266 2,366,261 78,502 2,287,759 $ - $ (4,995) $ - $ 4,995 85 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE BEVERAGE CENTER RECYCLING GRANT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 44,211 $ 44,211 $ 44,211 $ - 14,678 14,678 15,079 401 200 500 667 167 59,089 59,389 59,957 568 22,744 22,744 8,388 14,356 22,744 22,744 8,388 14,356 Budgetary Fund Balance, June 30 $ 36,345 $ 36,645 $ 51,569 $ 14,924 0 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE USED OIL BLOCK GRANT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 14,525 $ 14,525 $ 14,525 $ - 16,021 16,021 15,700 (321) - 100 127 27 30,546 30,646 30,352 (294) 16,021 16,021 14,781 1,240 16,021 16,021 14,781 1,240 Budgetary Fund Balance, June 30 $ 14,525 $ 14,625 $ 15,571 $ 946 87 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PARK AND FACILITY DEVELOPMENT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Licenses and permits Intergovernmental Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 159,940 $ 159,940 $ 159,940 $ - - - 746,560 746,560 107,000 107,000 125,018 18,018 1,000 2,000 4,549 2,549 215,400 215,400 - (215,400) 483,340 484,340 1,036,067 551,727 230,195 261,497 115,619 145,878 230,195 261,497 115,619 145,878 $ 253,145 $ 222,843 $ 920,448 $ 697,605 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG FUND) YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 7 $ 7 $ 7 $ - 289,834 289,834 80,482 (209,352) 289,841 289,841 80,489 (209,352) 128,521 128,521 71,982 56,539 161,313 161,313 8,507 152,806 289,834 289,834 80,489 209,345 Budgetary Fund Balance, June 30 $ 7 $ 7 $ - $ (7) CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with a Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 140,350 $ 140,350 $ 140,350 $ - 100,000 100,000 114,618 14,618 1,000 1,400 2,077 677 241,350 241,750 257,045 15,295 6,500 6,500 4,700 1,800 5,000 5,000 2,565 2,435 102,186 102,186 87,783 14,403 113,686 113,686 95,048 18,638 $ 127,664 $ 128,064 $ 161,997 $ 33,933 a CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 31,578 $ 31,578 $ 31,578 $ - 200 400 366 (34) 31,778 31,978 31,944 (34) 10,000 10,000 - 10,000 10,000 10,000 - 10,000 Budgetary Fund Balance, June 30 $ 21,778 $ 21,978 $ 31,944 $ 9,966 91 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE LANDSCAPE MAINTENANCE DISTRICT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Miscellaneous Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Highways and Streets Capital outlay Transfers out Total Charges to Appropriations Budget Amounts Original Final 684,398 684,398 - 539,465 284,032 311,948 968,430 1,535,811 Variance with Final Budget Actual Positive Amounts (Negative) 683,346 (1,052) 539,465 - 98,796 (213,152) 1,321,607 (214,204) 998,557 949,973 748,390 201,583 - 539,465 539,464 1 - 5,143 - 5,143 998,557 1,494,581 1,287,854 206,727 Budgetary Fund Balance, June 30 $ (30,127) $ 41,230 $ 33,753 $ (7,477) 92 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MEASURE R LOCAL RETURN FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 717,620 $ 717,620 $ 717,620 $ - 635,528 635,528 633,707 (1,821) 5,500 5,500 7,735 2,235 1,358,648 1,358,648 1,359,062 414 1,282,791 1,343,446 630,373 713,073 1,282,791 1,343,446 630,373 713,073 Budgetary Fund Balance, June 30 $ 75,857 $ 15,202 $ 728,689 $ 713,487 93 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PEG FEES FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 94 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 94,317 $ 94,317 $ 94,317 $ - 100,000 100,000 97,886 (2,114) 500 1,000 1,309 309 194,817 195,317 193,512 (1,805) 102,500 102,500 19,613 82,887 102,500 102,500 19,613 82,887 $ 92,317 $ 92,817 $ 173,899 $ 81,082 94 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE WASTE HAULER FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Licenses and permits Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 95 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 122,978 $ 122,978 $ 122,978 $ - 124,028 124,028 123,028 (1,000) 500 1,000 1,052 52 247,506 248,006 247,058 (948) 246,201 246,201 169,240 76,961 246,201 246,201 169,240 76,961 $ 1,305 $ 1,805 $ 77,818 $ 76,013 95 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2016 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Miscellaneous Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with XQ Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (71,561) $ (71,561) $ (71,561) $ - 426,892 456,185 100,841 (355,344) 4,088,333 4,088,333 - (4,088,333) 15,518,136 16,181,225 4,832,321 (11,348,904) 19,961,800 20,654,182 4,861,601 (15,792,581) 22,175,870 20,320,428 4,843,554 15,476,874 22,175,870 20,320,428 4,843,554 15,476,874 $ (2,214,070) $ 333,754 $ 18,047 $ (315,707) XQ CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2016 Variance with 97 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 3 $ 3 $ 3 $ - Resources (Inflows): Use of money and property - - 30 30 Transfers in 857,141 857,141 856,887 (254) Amounts Available for Appropriations 857,144 857,144 856,920 (224) Charges to Appropriation (Outflow): General government 1,185 1,185 1,150 35 Debt service: Principal retirement 385,000 385,000 385,000 - Interest and fiscal charges 470,956 470,956 470,741 215 Total Charges to Appropriations 857,141 857,141 856,891 250 Budgetary Fund Balance, June 30 $ 3 $ 3 $ 29 $ 26 97 CITY OF DIAMOND BAR COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2016 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 42,830 $ 3,034 $ - $ - $ 45,864 Total Liabilities 42,830 3,034 - - 45,864 Net Position: Governmental Activities - Internal Service Funds Investment in capital assets Self Equipment Computer Building 1,002,282 571,717 326,976 Insurance Replacement Equipment Facility & 594,518 2,989,286 Total Liabilities and Net Position Fund Fund Replacement Maintenance Totals Assets: Current: Cash and investments $ 1,045,112 $ 565,751 $ 326,976 $ 593,459 $ 2,531,298 Receivables: Accounts - 9,000 - 1,059 10,059 Total Current Assets 1,045,112 574,751 326,976 594,518 2,541,357 Noncurrent: Capital assets - net of accumulated depreciation - 170,174 323,619 - 493,793 Total Noncurrent Assets - 170,174 323,619 - 493,793 Total Assets $ 1,045,112 $ 744,925 $ 650,595 $ 594,518 $ 3,035,150 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 42,830 $ 3,034 $ - $ - $ 45,864 Total Liabilities 42,830 3,034 - - 45,864 Net Position: Investment in capital assets - 170,174 323,619 - 493,793 Unrestricted 1,002,282 571,717 326,976 594,518 2,495,493 Total Net Position 1,002,282 741,891 650,595 594,518 2,989,286 Total Liabilities and Net Position $ 1,045,112 $ 744,925 $ 650,595 $ 594,518 $ 3,035,150 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2016 Operating Revenues: Sales and service charges Miscellaneous Total Operating Revenues Operating Expenses: Administration and general Insurance premiums Equipment repair and maintenance Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers Transfers in Changes in Net Position Net Position: Beginning of Year End of Fiscal Year Governmental Activities - Internal Service Funds Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacement Maintenance Totals $ - $ - $ - $ 10,048 $ 10,048 - 9,000 - - 9,000 - 9,000 - 10,048 19,048 - 38,548 - - 38,548 423,335 - - - 423,335 - 29,417 32,759 - 62,176 - 36,534 149,609 - 186,143 423,335 104,499 182,368 - 710,202 (423,335) (95,499) (182,368) 10,048 (691,154) 6,379 7,145 3,454 4,577 21,555 6,379 7,145 3,454 4,577 21,555 (416,956) (88,354) (178,914) 14,625 (669,599) 412,204 - 100,000 200,000 712,204 (4,752) (88,354) (78,914) 214,625 42,605 1,007,034 830,245 729,509 379,893 2,946,681 $ 1,002,282 $ 741,891 $ 650,595 $ 594,518 $ 2,989,286 CITY OF DIAMOND BAR COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2016 Net Cash Provided (Used) by Operating Activities (189,913) (64,931) (137,564) 10,020 (382,388) Cash Flows from Non -Capital Financing Activities: Cash transfers in 412,204 - 100,000 200,000 712,204 Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities 412,204 - 100,000 200,000 712,204 - (107,077) (52,335) - (159,412) (107,077) (52,335) - (159,412) 6,379 7,145 3,454 4,577 21,555 6,379 7,145 3,454 4,577 21,555 228,670 (164,863) (86,445) 214,597 191,959 816,442 730,614 413,421 378,862 2,339,339 $1,045,112 $ 565,751 $ 326,976 $ 593,459 $ 2,531,298 $ (423,335) $ (95,499) $ (182,368) $ 10,048 $ (691,154) - 36,534 149,609 - 186,143 189,142 (9,000) - (28) 180,114 1,450 - - - 1,450 42,830 3,034 (104,805) - (58,941) 233,422 30,568 44,804 (28) 308,766 $ (189,913) $ (64,931) $ (137,564) $ 10,020 $ (382,388) 100 Governmental Activities - Internal Service Funds Computer Building Self Equipment Equipment Facility & Insurance Replacement Replacement Maintenance Fund Fund Fund Fund Totals Cash Flows from Operating Activities: Insurance Premiums paid $ (232,743) $ - $ - $ - $ (232,743) Payments to suppliers - (64,931) (137,564) - (202,495) Cash received from others 42,830 - - 10,020 52,850 Net Cash Provided (Used) by Operating Activities (189,913) (64,931) (137,564) 10,020 (382,388) Cash Flows from Non -Capital Financing Activities: Cash transfers in 412,204 - 100,000 200,000 712,204 Net Cash Provided (Used) by Non -Capital Financing Activities Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Net Cash Provided (Used) by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest received Net Cash Provided (Used) by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities 412,204 - 100,000 200,000 712,204 - (107,077) (52,335) - (159,412) (107,077) (52,335) - (159,412) 6,379 7,145 3,454 4,577 21,555 6,379 7,145 3,454 4,577 21,555 228,670 (164,863) (86,445) 214,597 191,959 816,442 730,614 413,421 378,862 2,339,339 $1,045,112 $ 565,751 $ 326,976 $ 593,459 $ 2,531,298 $ (423,335) $ (95,499) $ (182,368) $ 10,048 $ (691,154) - 36,534 149,609 - 186,143 189,142 (9,000) - (28) 180,114 1,450 - - - 1,450 42,830 3,034 (104,805) - (58,941) 233,422 30,568 44,804 (28) 308,766 $ (189,913) $ (64,931) $ (137,564) $ 10,020 $ (382,388) 100 DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2016 This part of the City of Diamond Bar's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health. Contents: Schedules Financial Trends — These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. 1 - 4 Revenue Capacity — These schedules contain information to help the reader assess the city's most significant local revenue source, the property tax. 5 - 8 Debt Capacity — These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to 9-11 issue additional debt in the future. Demographic and Economic Information — These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 12-13 Operating Information — These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 14-16 101 City of Diamond Bar Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, 102 2007 2008 2009 2010 2011 Governmental activities: Net investment in capital assets $ 375,216,400 $ 370,949,296 $ 367,529,907 $ 377,940,738 $ 381,985,940 Restricted for: Capital projects 3,446,872 2,912,276 3,526,991 2,260,872 146,567 Community development 1,013,495 889,176 568,280 725,667 1,644,861 Public safety 541,482 559,920 453,730 Public works 3,636,487 Debt service 321,747 309,533 305,915 319,815 333,694 Unrestricted 34,072,884 36,236,504 34,554,084 34,215,610 22,582,318 Total governmental activities net position $ 414,071,398 $ 411,296,785 $ 407,026,659 $ 416,022,622 $ 410,783,597 102 Schedule 1 2012 2013 2014 2015 2016 $ 382,660,310 $ 378,511,311 $ 372,068,596 $ 368,779,901 $ 363,216,277 163,603 165,587 135,914 207,205 267,984 958,293 1,084,434 1,174,082 1,482,522 2,382,667 285,508 196,503 140,747 171,928 193,941 3,504,339 3,964,252 4,015,113 3,862,123 4,465,023 2 3 4 3 29 18,288,491 18,508,423 20,894,700 20,659,058 22,742,992 $ 405,860,546 $ 402,430,513 $ 398,429,156 $ 395,162,740 $ 393,268,913 103 Expenses: Governmental activities: General government Public safety Highways and streets Community development Parks, recreation and culture Interest on long-term debt Total general expenses Program revenues: Governmental activities: Charges for services General Government Public safety Highways and streets Community development Parks, recreation and culture Operating grants and contributions Capital grants and contributions Total governmental activities program revenues General revenues: Taxes Property taxes Transient occupancy taxes Sales taxes Franchise taxes Other taxes Unrestricted Motor vehicle in lieu Use of money and property Other revenues Loss on disposal of capital asset Total general revenues Change in net position Net position at beginning of year Restatement of net position Net position at end of year Source: City Finance Department City of Diamond Bar Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, 2007 2008 2009 2010 2011 $ 4,784,314 $ 4,473,666 $ 5,159,300 $ 4,973,685 $ 6,370,986 4,876,435 4,944,729 5,396,083 5,526,099 5,591,049 14,019,550 12,034,669 13,931,211 12,287,325 10,619,860 2,292,757 2,251,196 1,959,303 1,624,547 1,969,540 4,779,588 5,188,977 4,950,687 5,091,215 5,153,264 498,042 392,548 177,633 57,948 72,592 31,250,686 29,285,785 31,574,217 29,560,819 29,777,291 262,541 225,553 132,262 131,633 118,016 537,068 632,980 596,375 605,262 558,544 3,493,798 2,851,187 1,732,985 2,070,167 2,400,272 996,424 567,302 438,563 430,081 955,380 1,385,788 1,581,597 1,705,282 1,754,789 1,829,409 6,968,824 4,307,074 5,588,818 4,358,895 3,685,378 1,254,314 219,193 2,272,580 15,960,279 40,779 14,898,757 10,384,886 12,466,865 25,311,106 9,587,778 3,754,955 3,927,073 4,001,276 3,837,288 4,187,896 774,757 800,390 633,075 569,916 642,509 3,943,345 4,102,177 3,085,223 3,122,229 3,355,127 1,064,621 1,024,710 1,093,039 1,115,980 1,259,471 331,096 283,433 199,365 259,384 172,687 4,356,641 4,563,127 4,687,515 4,599,922 4,766,225 1,476,010 1,420,988 833,270 618,963 474,598 41,362 4,388 304,463 7,090 91,975 15,742,787 16,126,286 14,837,226 14,130,772 14,950,488 (609,142) (2,774,613) (4,270,126) 9,881,059 (5,239,025) 414,680,540 414,071,398 411,296,785 407,026,659 416,022,622 (885,096) $ 414,071,398 $ 411,296,785 $ 407,026,659 $ 416,022,622 $ 410,783,597 104 Schedule 2 2012 2013 2014 2015 2016 $ 6,384,072 $ 6,942,983 $ 7,301,502 $ 6,524,968 $ 5,897,286 6,104,982 5,831,227 5,627,026 5,929,156 6,216,279 11,248,137 10,197,098 10,599,386 10,225,922 11,966,721 2,126,906 1,980,646 2,346,073 2,587,504 2,127,206 5,559,427 5,591,916 6,463,192 6,300,920 6,137,787 848,976 487,369 477,201 466,662 455,700 32,272,500 31,031,239 32,814,380 32,035,132 32,800,979 247,248 160,379 770,908 587,081 661,910 491,831 502,948 559,008 523,145 470,722 2,555,900 2,604,053 2,671,741 5,536,984 4,389,876 1,006,971 1,196,806 1,413,094 2,463,932 1,820,325 1,753,585 1,689,497 1,804,189 1,758,319 1,684,814 4,992,856 4,024,537 4,203,990 4,443,765 3,687,015 1,242,636 690,732 207,971 717,961 1,455,770 12,291,027 10,868,952 11,630,901 16,031,187 14,170,432 3,951,722 4,080,273 4,307,077 4,448,566 4,665,140 692,162 782,952 851,249 935,355 994,476 3,397,259 3,546,239 3,658,327 3,974,564 4,598,858 1,415,924 1,465,666 1,393,584 1,460,342 1,431,513 202,951 333,250 471,455 442,914 523,015 4,646,985 4,659,994 4,862,100 5,133,910 5,411,143 145,408 6,307 256,758 244,275 524,918 46,342 533,475 52,891 114,545 703,457 (21,057) 1,328,681 14,498,753 15,387,099 17,182,122 16,754,471 18,852,520 (5,482,720) (4,775,188) (4,001,357) 750,526 221,973 410,783,597 405,860,546 402,430,513 398,429,156 395,162,740 559,669 1,345,156 (4,016,942) (2,115,800) $ 405,860,546 $ 402,430,513 $ 398,429,156 $ 395,162,740 $ 393,268,913 105 THIS PAGE INTENTIONALLY LEFT BLANK m. City of Diamond Bar Schedule 3 Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) General fund: 2011 2012 2013 2014 2015 2016 Nonspendable: Reserved $ 1,893,287 $ 1,864,387 $ 1,612,181 Prepaid costs $ 41,451 $ 28,114 $ 26,331 $ 62,752 $ 75,887 $ 75,866 Committed to: 453,730 285,508 140,747 171,928 193,941 Emergency contingencies 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 Unassigned 16,726,964 12,616,200 13,010,385 15,199,698 17,656,659 19,350,943 Total general fund 21,268,415 17,144,314 17,536,716 19,762,450 22,232,546 23,926,809 All other governmental funds: Fiscal Year Ended June 30, 2007 2008 2009 2010 Restricted for: Reserved $ 1,893,287 $ 1,864,387 $ 1,612,181 Comm development projects 1,644,861 958,293 750 1,174,082 1,482,522 2,382,667 Public safety 453,730 285,508 140,747 171,928 193,941 Highways and streets 3,271,595 3,170,407 1,084,434 4,015,113 3,862,123 4,465,023 Capital Projects 146,567 164,867 196,503 135,914 207,205 267,984 Debt service 333,694 2 3,964,252 4 3 29 Assigned to: 165,587 Capital Projects 3 Unassigned 2,730 (88,639) (71,561) (905,935) Total all other governmental funds 5,850,447 4,579,077 (3,466) 5,377,221 5,652,220 6,403,709 5,410,793 Total fund balances $27,118,862 $ 21,723,391 $ 22,947,509 $ 25,139,671 $ 27,884,766 $ 30,330,518 All other governmental funds Reserved 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: Special revenue funds 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund Capital projects funds (4,681,728) (5,703,854) (2,701,642) (2,020,782) Total all other governmental funds 4,366,089 5,061,948 5,476,863 4,932,937 Total fund balances $34,827,639 $ 37,991,462 $ 37,130,401 $ 35,730,035 Note: The City implemented GASB 54, titled "Fund Balance Reporting and Governmental Fund Type Definitions" as of the fiscal year ended June 30, 2011. Source: City Finance Department 107 Fiscal Year Ended June 30, 2007 2008 2009 2010 General fund: Reserved $ 1,893,287 $ 1,864,387 $ 1,612,181 $ 1,955,477 Unreserved 28,568,263 31,065,127 30,041,357 28,841,621 Total general fund 30,461,550 32,929,514 31,653,538 30,797,098 All other governmental funds Reserved 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: Special revenue funds 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund Capital projects funds (4,681,728) (5,703,854) (2,701,642) (2,020,782) Total all other governmental funds 4,366,089 5,061,948 5,476,863 4,932,937 Total fund balances $34,827,639 $ 37,991,462 $ 37,130,401 $ 35,730,035 Note: The City implemented GASB 54, titled "Fund Balance Reporting and Governmental Fund Type Definitions" as of the fiscal year ended June 30, 2011. Source: City Finance Department 107 City of Diamond Bar Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Revenues: Taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Licenses and permits Use of money and property Other Total revenues Expenditures: Current: General government Public safety Public works Parks, recreation and culture Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Bond issued or refinancing Bonds discount or premium Transfers in Transfers out Proceeds from sale of capital asset Contribution to OPEB Trust Total other financing sources (uses) Net changes in fund balances Debt service as a percentage of noncapital expenditures Source: City Finance Department Fiscal Year Ended June 30, 2007 2008 2009 2010 2011 $ 9,876,760 $ 10,165,881 $ 9,119,375 $ 8,591,893 $ 9,646,883 541,382 543,561 550,822 556,989 556,562 11,169,052 9,896,948 12,081,466 11,478,456 9,441,959 1,002,210 1,111,655 1,460,828 3,191,416 3,390,367 546,902 637,484 601,533 607,936 567,575 4,247,626 3,121,476 1,445,324 640,287 818,913 1,716,194 1,629,257 938,053 648,503 499,377 767,457 826,177 1,018,956 30,766 113,578 29,867,583 27,932,439 27,216,357 25,746,246 25,035,214 4,402,235 3,987,656 5,071,860 4,435,858 4,977,021 4,880,290 4,933,958 5,407,476 5,524,279 5,580,507 5,114,274 4,926,418 5,607,870 5,183,964 5,002,456 3,475,549 3,714,762 3,673,282 3,655,029 3,712,194 2,292,757 2,246,496 1,945,951 1,604,220 1,960,125 5,344,935 4,271,890 5,508,167 5,161,924 11,480,595 240,000 255,000 265,000 280,000 290,000 493,840 411,583 187,212 33,904 37,461 26,243,880 24,747,763 27,666,818 25,879,178 33,040,359 3,623,703 3,184,676 (450,461) (132,932) (8,005,145) 6,030,764 7,266,149 6,629,225 4,379,718 2,929,528 (6,354,106) (7,608,749) (7,039,825) (4,795,374) (3,535,556) (323,342) (342,600) (410,600) (415,656) (606,028) $ 3,300,361 $ 2,842,076 $ (861,061) $ (548,588) $ (8,611,173) 2.91% 108 2.89% 1.77% 1.35% 1.45% Schedule 4 2012 2013 2014 2015 2016 $ 9,664,801 $ 10,200,419 $ 10,638,609 $ 10,730,234 $ 12,930,081 547,209 550,609 549,402 672,492 781,232 11,053,326 10,427,352 10,281,985 11,185,489 10,384,417 3,190,675 3,238,165 3,321,883 3,344,356 3,101,103 509,166 522,142 582,844 523,145 470,722 1,127,569 1,238,626 1,542,765 5,474,765 4,121,387 183,507 30,116 281,752 273,656 563,300 54,634 551,710 85,558 136,786 716,914 26,330,887 26,759,139 27,284,798 32,340,923 33,069,156 5,485,001 4,214,834 5,115,321 5,040,491 5,177,288 5,731,595 5,678,614 5,602,021 5,914,404 6,201,985 6,609,087 5,263,046 5,698,765 5,216,083 5,531,705 4,090,551 4,050,161 4,406,954 4,225,938 4,232,431 2,114,433 2,010,040 2,225,647 2,540,430 2,313,053 6,702,615 3,031,168 2,518,617 4,646,891 5,598,997 12,510,000 335,000 350,000 365,000 385,000 406,626 502,291 492,159 481,656 470,741 43,649,908 25,085,154 26,409,484 28,430,893 29,911,200 (17,319,021) 1,673,985 875,314 11,790,000 252,381 6,085,337 5,195,892 4,856,728 (6,494,449) (5,690,201) (5,822,286) 2,282,406 3,910,030 3,157,956 7,084,629 7,287,721 (8,249,564) (7,999,925) (84,761) 11,633,269 (494,309) 1,316,848 (1,164,935) (796,965) $ (5,685,752) $ 1,179,676 $ 2,192,162 $ 2,745,095 $ 2,360,991 35.00% 3.49% 3.35% 3.48% 109 3.24% THIS PAGE INTENTIONALLY LEFT BLANK 110 City of Diamond Bar Schedule 5 Assessed and Estimated Actual Values of Taxable Property 2006/07 - 2015/16 Taxable Property Values (unaudited) Fiscal Year Real Property Less Total Taxable Total Ended Secured Unsecured Other Tax Assessed Direct June 30, Property Property Property Exemptions Value Tax Rate % Change 2006-07 $ 6,359,723,846 $90,751,985 $ 134,088 $ 28,682,577 $ 6,421,927,342 0.05280 9.31% 2007-08 6,824,177,817 109,704,881 0 39,859,238 6,894,023,460 0.05485 7.35% 2008-09 7,151,359,322 99,170,064 0 48,909,164 7,201,620,222 0.05270 4.46% 2009-10 7,071,193,381 90,528,493 0 66,422,679 7,095,299,195 0.05274 -1.48% 2010-11 7,183,008,793 81,410,401 0 70,706,628 7,193,712,566 0.05270 1.39% 2011-12 7,347,032,537 77,283,606 0 74,296,191 7,350,019,952 0.05268 2.17% 2012-13 7,471,528,800 76,724,231 0 78,856,697 7,469,396,334 0.05267 1.62% 2013-14 7,765,883,788 69,544,511 0 83,574,453 7,751,853,846 0.05264 3.78% 2014-15 8,201,610,010 70,524,426 0 83,189,280 8,188,945,156 0.05260 5.64% 2015-16 8,649,508,385 72,343,401 0 85,103,082 8,636,748,704 0.05256 5.47% $10,000,000,000 $9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 o $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 Net Assessed Value 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Fiscal Year Exempt values are not included in Total Net Taxable Values. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Prior to 2007, all SBE Nonunitary Railroad Properties were taxed at the tax rate area level. As of 2007, there was legislation passed that requires Counties to track this value for the each county in a specific tax rate area and it's distributed differently. Therefore from this year forward, Cities can no longer keep tracking how much value there is on railroad properties within each City. Source: HDL Coren & Cone and Los Angeles County Auditor/Controller-Property Tax Division. 111 City of Diamond Bar Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Value) Agency 2006/07 2007/08 2008/09 2009/10 2010/11 Basic Levy* 1.00000 1.00000 1.00000 1.00000 1.00000 County Detention Facilities 1987 Debt LA County Flood Control Metropolitan Water District Mt. San Antonio College Pomona Unified School Dist Walnut Valley Unified School Dist Total Direct & Overlapping Tax Rates City's Share of 1% Levy Per Prop 13* General Obiligation Debt Rate Redevelopment Rate* Total Direct Rate* 0.00066 0.00000 0.00000 0.00000 0.00000 0.00005 0.00000 0.00000 0.00000 0.00000 0.00470 0.00450 0.00430 0.00430 0.00370 0.02530 0.01750 0.02333 0.02571 0.02636 0.12401 0.11379 0.11577 0.14546 0.17721 0.08749 0.08462 0.11297 0.11674 0.11839 1.2422 1.2204 1.2564 1.2922 1.3257 0.05192 0.05192 0.05192 0.05192 0.05192 0.05280 0.05485 0.05270 0.05274 0.05270 * In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for the Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school district the property is located in. Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. RDA rate is based on the largest RDA tax rate area(TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incredmental property values. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. Source: Hdl Coren & Cone 112 Schedule 6 2011/12 2012/13 2013/14 2014/15 2015/16 1.00000 1.00000 1.00000 1.00000 1.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00370 0.00350 0.00350 0.00350 0.00350 0.02642 0.02896 0.02023 0.02129 0.02154 0.17364 0.18488 0.16407 0.16599 0.15364 0.11735 0.12554 0.11342 0.11510 0.09285 1.3211 1.3429 1.3012 1.3059 1.2715 0.05192 0.05192 0.05192 0.05192 0.05192 0.05268 0.05267 0.05264 0.05260 0.05256 113 Current Taxpayers Roic Diamond Hills Plaza LLC SRGMF South Grand Diamond Bar LLC BSP Senita Gateway Corp Inc Pacifica Trenton Holdings -2 LLC Roic California LLC Target Corporation Muller Rock 2 Gateway Kaiser Millenium Diamond Road Partner Margaret M. Tam Trust ETAL Top Ten Total City Total Taxpayers Nine Years Ago Behringer Harvard Western Portfolio Hampton Apartments at Diamond Bar LP CRP -2 Holdings CC Gem Gateway Limited Inc Hidden Manna Corporation Muller Rock 2 Gateway Danari Diamond Bar LLC Millennium Diamond Road Partners LLC J.F. Shea Company Inc. Margaret M. Tam Trust, Et. Al. Top Ten Total City Total Source: Hdl Coren & Cone. City of Diamond Bar Top 10 Property Taxpayers Current Year and Nine Years Ago 2015-16 Assessed Valuation $ 50,180,866 46,355,981 40,000,000 30,840,781 28,484,169 27,451,357 26,779,531 26,038,552 24,346,712 18,464,858 $ 318,942,807 $ 8,636,748,704 2006-07 Assessed Valuation $ 39,150, 000 34,855,141 28,119, 840 26,283,641 24,231,313 23, 551, 362 19,518,942 17,646,000 16,398,921 16,241,200 $ 245,996,360 $ 5,874,950,276 114 Schedule 7 Percentage of Total Net Assessed Valuation 0.58% 0.54% 0.46% 0.36% 0.33% 0.32% 0.31% 0.30% 0.28% 0.21% 3.69% Percentage of Total Net Assessed Valuation 0.61% 0.54% 0.44% 0.41% 0.38% 0.37% 0.30% 0.27% 0.26% 0.25% 3.83% Fiscal Year Taxes Levied Ended for the June 30 Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3,351,647 3,598,889 3,760,371 3,704,133 3,750,806 3,844,101 3,908,533 4,075,791 4,326,040 4,568,789 City of Diamond Bar Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Collected within the Fiscal Year of Levy Amount % to Levy $ 3,090,289 92.20% 3,276,908 91.05% 3,436,585 91.39% 3,412,996 92.14% 3,505,792 93.47% 3,506,696 91.22% 3,778,461 96.67% 3,960,684 97.18% 4,189,390 96.84% 4,412,561 96.58% Source: Los Angeles County Auditor/Controller. City Finance Department 115 Schedule 8 Collections in Subsequent Years % to Levy $ 261,359 7.80% 321,981 8.95% 323,786 8.61% 291,137 7.86% 245,015 6.53% 337,405 8.78% 130,072 3.33% 115,107 2.82% 136,650 3.16% 156,228 3.42% City of Diamond Bar Schedule 9 Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Note: (a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements. (b) Details regarding the City's population and personal income can be found in the Demographic and Economic Statistics Table. Source: City Finance Department 116 Governmental Activities Fiscal Year Lease Unamortized Total Total % of Debt Ended Revenue Bond Premium Governmental Primary Personal Per June 30 Bonds (a) (Discount) Activities Government Income (b) Capita (b) 2007 $ 13,280,000 (119,210) $ 13,160,790 $ 13,160,790 0.72% 221 2008 13,025,000 (114,625) 12,910,375 12,910,375 0.68% 215 2009 12,760,000 (110,040) 12,649,960 12,649,960 0.66% 210 2010 12,480,000 (105,455) 12,374,545 12,374,545 0.66% 223 2011 12,190,000 (100,869) 12,089,131 12,089,131 0.62% 217 2012 11,470,000 243,853 11,713,853 11,713,853 0.63% 210 2013 11,135,000 229,727 11,364,727 11,364,727 0.57% 203 2014 10,785,000 215,601 11,000,601 11,000,601 0.55% 195 2015 10,420,000 201,475 10,621,475 10,621,475 0.55% 188 2016 10,035,000 187,349 10,222,349 10,222,349 0.53% 179 Note: (a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements. (b) Details regarding the City's population and personal income can be found in the Demographic and Economic Statistics Table. Source: City Finance Department 116 City of Diamond Bar Schedule 10 Direct and Overlapping Debt (unaudited) Gross Bonded % Applicable Net Bonded Debt Balance To City (1) Debt Direct Debt as of June 30, 2015 Diamond Bar Lease Revenue Bond $ 10,035,000 100.000 $ 10,035,000 Overlapping Debts as of June 30, 2015 (2) 330.10 Metropolitan Water District 44,916,916 0.840 377,157 809.53 Mt San Antomio CCD 2001 Series C 2006 1,000,000 10.913 109,126 809.54 Mt San Antonio CCD DS 2001, 2008 Series D 1,000,924 10.913 109,227 809.56 Mt San Antonio CCD DS 2008 Series 13A 202,351,691 10.913 22,081,860 809.57 Mt San Antonio CCD DS 2008 Series 2013B 9,555,000 10.913 1,042,700 809.58 Mt San Antonio CCD DS 2013 Series A 70,910,000 10.913 7,738,135 809.59 Mt San Antonio CCD DS 2013 Series B 44,045,000 10.913 4,806,461 809.60 Mt San Antonio CCD DS 2008 Series 2015C 39,130,000 10.913 4,270,106 915.62 Pomona Unified School District 2000 Ser A 14,110,000 20.031 2,826,334 915.64 Pomona Unified SD Refunding 2001 Ser A 13,330,000 20.031 2,670,095 915.70 Pomona Unified School DS 2007 Ref Bonds 7,421,815 20.031 1,486,643 915.71 Pomona Unified School District 2008 Series A 4,650,000 20.031 931,428 915.72 Pomona USD DS 2008 Series B 41,300,000 20.031 8,272,687 915.73 Pomona USD 2008 Series C 10,105,000 20.031 2,024,104 915.74 Pomona USD DS 2012 Refunding Bond Series A 25,115,000 20.031 5,030,715 915.75 Pomona USD DS 2012 Refunding Bond Series B 14,000,000 20.031 2,804,301 915.76 Pomona USD DS 2008 Series D QSCBS 24,285,000 20.031 4,864,460 915.77 Pomona USD DS 2008 Series E 23,000,000 20.031 4,607,065 915.78 Pomona USD DS 2008 Series F 18,320,000 20.031 3,669,628 915.79 Pomona USD DS 2015 Ref Bonds 45,038,077 20.031 9,021,450 980.60 Walnut Valley Unified USD DS 2000 Series E 16,694,951 59.493 9,932,367 980.62 Walnut Valley Unified SD 2007 Series A (Measure S) 1,685,000 59.493 1,002,461 980.63 Walnut Valley Unified SD 2007 Series A (Measure Y) 285,887 59.493 170,083 980.64 Walnut Valley Unified SD 2011 Refunding 27,329,521 59.493 16,259,217 980.67 Walnut Valley USD 2012 Ref Bonds 5,585,000 59.493 3,322,697 980.69 Walnut Valley USD 2014 Ref Bonds Series A 24,470,000 59.493 14,557,995 980.70 Walnut Valley USD 2014 Ref Bonds Series B 40,660,000 59.493 24,189,950 Total Overlapping Debts: 770,294,782 158,178,452 Grand Total Direct and Overlapping Debt: $ 780,329,782 $ 168,213,452 Debt to Assessed Valuation Ratios as of June 30, 2016: 2015/16 Net Assessed Valuation: $ 8,636,748,704 Direct Debt 0.12% $176 2015 Total City Population: 57,081 Overlapping Debt 1.83% $2,771 Total Debt 1.95% $2,947 Note: (1) Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city. (2) The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city. Source: Hdl Coren & Cone U.S. Census Bureau City Finance Department 117 Ficral Year Net assessed value Add back: Exemptions Gross assessed value Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit City Debts: Revenue bonds Legal debt margin Fiscal Year Net assessed value Add back: Exemptions Gross assessed value Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit City Debts: Revenue bonds Legal debt margin City of Diamond Bar Computation of Legal Debt Margin Last Ten Fiscal Years (unaudited) Schedule 11 2012 2013 2014 2015 2016 $ 7,350,019,952 $ 7,469,396,334 $ 7,751,853,846 $ 8,188,945,156 $ 8,636,748,704 74,296,191 78,856,697 83,574,453 83,189,280 85,146,082 7,424,316,143 7,548,253,031 7,835,428,299 8,272,134,436 8,721,894,786 25% 25% 25% 25% 25% 1,856,079,036 1,887,063,258 1,958,857,075 2,068,033,609 2,180,473,697 15% 15% 15% 15% 15% 278,411,855 283,059,489 293,828,561 310,205,041 327,071,054 11,470,000 11,135,000 10,785,000 10,420,000 10,035,000 $ 266,941,855 $ 271,924,489 $ 283,043,561 $ 299,785,041 $ 317,036,054 2007 2008 2009 2010 2011 $ 6,421,927,342 $ 6,894,023,460 $ 7,201,620,222 $ 7,095,299,195 $ 7,193,712,566 28,682,577 39,859,238 48,909,164 66,422,679 70,706,628 6,450,609,919 6,933,882,698 7,250,529,386 7,161,721,874 7,264,419,194 25% 25% 25% 25% 25% 1,612,652,480 1,733,470,675 1,812,632,347 1,790,430,469 1,816,104,799 15% 15% 15% 15% 15% 241,897,872 260,020,601 271,894,852 268,564,570 272,415,720 13,280,000 13,025,000 12,760,000 12,480,000 12,190,000 $ 228,617,872 $ 246,995,601 $ 259,134,852 $ 256,084,570 $ 260,225,720 The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local govern- ment located within the state. Source: Section 43605 of the California Government Code Hdl Coren & Cone City Finance Department 118 City of Diamond Bar Demographic and Economic Statistics (unaudited) General Information Date of Incorporation April 18, 1989 Form of Government Council -Manager Area 14.88 Square Miles Miles of Streets 128 Public Safety Police Protection Los Angeles County Sheriff Department Fire Protection Los Angeles County Fire Department Education School District Pomona Unified School District Schools 1 High School, 1 Middle School, & 4 Elementary Schools School District Walnut Valley Unified School District Schools 1 High School, 2 Middle Schools, & 4 Elementary Schools Schedule 12 Sinale Familv Residential Full Value Sales (01/01/2012-07/31/2016 Year Full Value Sales Personal Per Capita Median 789 $ 484,681 Pop 25+ Pop 25+ Calendar 591,380 Income Personal Household Unemployment Median High School Bachelor Year Population (In Thousands) Income Income Rate Age Degree Degree 2006 59,497 $ 1,827,966 $ 30,724 3.40% 2007 59,629 1,903,585 31,924 87,224 3.60% 2008 59,920 1,929,498 32,201 94,061 5.30% 2009 60,184 1,885,698 31,332 89,185 8.30% 39.2 93.1% 46.7% 2010 55,766 1,960,418 35,154 87,216 9.10% 39.8 92.0% 47.6% 2011 55,819 1,846,158 33,074 90,153 8.80% 40.5 92.5% 47.8% 2012 56,099 1,991,290 35,496 90,181 6.60% 40.6 92.6% 48.8% 2013 56,400 1,984,772 35,191 88,422 5.40% 41.3 92.4% 49.7% 2014 56,426 1,919,782 34,023 90,901 5.30% 40.9 92.0% 48.4% 2015 57,081 1,943,144 34,041 90,966 4.30% 41.1 91.5% 47.9% Population Distribution by Race (2010 US Census) Total Percent Asian 28,106.06 50.40% White 18,570.08 33.30% Hispanic or Latino 10,294.40 18.46% African American 2,174.87 3.90% Others - 0.00% Sinale Familv Residential Full Value Sales (01/01/2012-07/31/2016 Year Full Value Sales Average Price Median Price 2012 789 $ 484,681 $ 417,500 2013 814 591,380 500,000 2014 701 660,281 535,000 2015 726 626,515 551,000 2016 377 (Jan -Jul 2016)) 617,006 565,000 Median % Change 19.76% 7.00% 2.99% 2.54% Data Source: 1. L.A. County Recorder 2. HdL Cornen & Cone 3. US Bureau of the Census. The official population census of the United States is conducted every ten years, most recently in 2010. 4. Median household income source: US Bureau of the Census. 119 City of Diamond Bar Schedule 13 Principal Employers Current Fiscal Year and Nine Fiscal Years Ago (unaudited) Total Sources: (1) State of California - Labor Market Info (2) Info USA - Government Division (3) City Manager's Office 120 2,729 8.59% 2016 Number of Percent of Company Name Employees Rank Employment Walnut Valley Unified Schools District 1,400 1 4.90% South Coast Air Quality Management 800 2 2.80% Allstate Insurance - Claim Dept 485 3 1.70% Travelers Insurance 475 4 1.66% Pomona Unified School District 385 5 1.35% QTC/Lockheed 250 6 0.87% Liferay 200 7 0.70% Wells Fargo Bank 180 8 0.63% Kaiser Permanente 125 9 0.44% Graybar Electric 122 10 0.43% Total 4,422 15.09% Total city employment 29,300 in 2016. 2007 Number of % of City Company Name Employees Rank Employment South Coast Air Quality Management 762 1 2.40% Acosta Sales & Marketing 450 2 1.42% St Paul Travelers 402 3 1.26% Target Store - Diamond Bar 220 4 0.69% Diamond Bar High School 200 5 0.63% Lab Support Inc 200 6 0.63% J.F. Shea Co. Inc 135 7 0.42% Baybrook Services 120 8 0.38% Goodrich Corp 120 9 0.38% Southwest Patrol 120 10 0.38% Total Sources: (1) State of California - Labor Market Info (2) Info USA - Government Division (3) City Manager's Office 120 2,729 8.59% Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. A full-time emplyee is scheduled to work 2,080 hours per year (including vacation and sick leave). Source: City Finance Department 121 City of Diamond Bar Schedule 14 Full-time and Part-time City Government Employees by Function/Program Fiscal Year Ended June 30, Function 2012 2013 2014 2015 2016 General government 23 24 24 25 25 Community development 8 8 8 8 9 Community services 75 87 70 73 69 Public works 9 8 8 9 10 Total 115 127 110 115 113 Fiscal Year Ended June 30, Function 2007 2008 2009 2010 2011 General government 21 24 25 21 24 Community development 8 6 7 8 8 Community services 74 69 71 75 75 Public works 8 10 10 9 9 Total 111 109 113 113 116 Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. A full-time emplyee is scheduled to work 2,080 hours per year (including vacation and sick leave). Source: City Finance Department 121 Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Dep East Regional Operation Bureau (3) City Public Works Department (4) City Community Services Department (5) Includes online classes Note: Indicators are not available for the general government function. 122 City of Diamond Bar Schedule 15 Operating Indicators by Function Last Ten Fiscal Years Fiscal Year Ended June 30, Function 2012 2013 2014 2015 2016 Police:(in fiscal year) (1) Physical arrests 737 630 494 522 702 Street Sweeping Parking Citation 3,766 3,776 5,774 5,887 5,682 Fire: (in fiscal year) (2) Number of emergency calls 2,516 2,604 2,760 2,820 3,180 Inspections 1,287 1,477 1,434 1,413 1,667 Public works: (in fiscal year) (3) Street resurfacing (miles) 9.2 8.3 12.5 17.0 19.3 Parks and recreation:(in fiscal year)(4) Number of recreation classes(5) 2,096 2,082 2,623 2,591 2,546 Number of facility rentals 4,270 4,332 4,178 4,491 4,804 Fiscal Year Ended June 30, Function 2007 2008 2009 2010 2011 Police: (1) Physical arrests 582 543 591 700 647 Street Sweeping Parking Citation 5,684 5,200 5,103 5,110 4,137 Fire: (2) Number of emergency calls 2,612 2,595 2,561 2,654 2,594 Inspections 1,114 1,085 1,100 979 1,202 Public works: (3) Street resurfacing (miles) 19.6 18.5 13.8 23.3 12.0 Parks and recreation:(4) Number of recreation classes 1,558 1,569 1,315 2,456 2,115 Number of facility rentals 4,555 4,103 4,299 4,111 4,147 Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Dep East Regional Operation Bureau (3) City Public Works Department (4) City Community Services Department (5) Includes online classes Note: Indicators are not available for the general government function. 122 (a) The City fully implemented the new reporting model of the Infrastructure Valuation and Asset Management System in accordance with GASB 34 in FY2007. Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Department, Division VIII Office (3) City Public Works Department (4) City Community Services Department (5)LA County Golf Course Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. No capital asset indicators are available for the general government function. 123 City of Diamond Bar Schedule 16 Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year Ended June 30, Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Public safety (1) Police: Station 1 1 1 1 1 1 1 1 1 1 Patrol units (all shifts combined) 19 18 18 18 18 18 18 18 18 18 Fire stations (2) 3 3 3 3 3 3 3 3 3 3 Highways and streets (3) Streets (miles) 128 128 128 129.4 129.4 129.4 129.4 129.4 129.4 130.9 Streetlights 233 233 233 294 294 294 294 294 294 294 Traffic signals 74 74 74 76 76 76 76 76 76 76 Culture and recreation:(4) Parks acreage (developed) 62.7 62.7 62.7 62.7 63.6 67.9 67.9 67.9 67.9 67.9 Parks acreage (undeveloped) 439.0 439.0 439.4 439.4 440.3 440.3 440.3 440.3 440.3 440.3 Hiking Trails (developed miles) 2.7 2.7 2.7 2.7 2.7 3.2 3.2 3.2 4.0 4.0 Hiking Trails (undeveloped miles) 5.4 5.4 5.4 5.4 5.4 5.0 5.0 5.0 4.1 4.1 Parks 12 12 13 13 14 15 15 15 15 15 Public Tennis courts 8 8 8 8 8 8 8 8 8 8 Community centers 3 3 3 3 3 3 3 3 3 3 Golf Course:(5) County golf courses 1 1 1 1 1 1 1 1 1 1 Sewer (3) Sanitary sewers (miles) 157 157 157 158.4 158.4 158.4 161.21 161.21 161.21 161.21 (a) The City fully implemented the new reporting model of the Infrastructure Valuation and Asset Management System in accordance with GASB 34 in FY2007. Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Department, Division VIII Office (3) City Public Works Department (4) City Community Services Department (5)LA County Golf Course Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. No capital asset indicators are available for the general government function. 123 THIS PAGE INTENTIONALLY LEFT BLANK 124