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Home My WebLink AboutCAFR - FY 2012-13City of Diamond Bar, California Comprehensive Annual Financial Report Year ending June 30, 2013 CITY OF DIAMOND BAR, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2013 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, 2013 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 Statementof 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. Budgetary Comparison Statement - General Fund .................................... Statement of Net Position — Proprietary Funds ........................................... Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds........................................................................ Statement of Cash Flows — Proprietary Funds ............................................ Notes to Basic Financial Statements.............................................................. Page(s) ... i .vi vii viii 1 5 17 18 .20 .21 .22 .....23 .....24 .....25 .26 .27 .29 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds ............................. Budgetary Comparison Schedules - Special Revenue Funds: StateGas Tax Fund............................................................................ Proposition A Transit Fund................................................................. Proposition C Transit Fund................................................................ Transportation Grant Fund.................................................................. Integrated Waste Management Fund ................................................. Traffic Improvement Fund................................................................... Air Quality Improvement Fund............................................................ Trails & Bikeways Fund....................................................................... Park and Facility Development Fund .................................................. Community Development Block Grant (CDBG) Fund ........................ Citizens Option for Public Safety (COPS) Fund ................................. Asset Seizure Fund............................................................................. California Law Enforcement Equipment Program (CLEEP) Fund ...... Landscape Maintenance District Fund ................................................ Measure R Local Return Fund............................................................ EECBGFund...................................................................................... Budgetary Comparison Schedule - Capital Projects Funds: Capital Improvement Fund ....................................................... Budgetary Comparison Schedule - Debt Service Funds: Public Financing Authority........................................................ Combining Statement of Net Position — Internal Service Funds. Combining Statement of Revenues, Expenses, and Changes in Fund Net Position — Internal Service Funds ................................ Combining Statement of Cash Flows — Internal Service Funds Page(s) 52 .63 .64 .65 .66 .67 .68 .69 .70 .71 .72 .73 .74 .75 .76 .77 .78 .79 .80 .81 .82 .83 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS STATISTICAL SECTION Financial Trends: Page(s) Net Position by Component - Last Ten Fiscal Years..................................................................86 Changes in Net Position - Last Ten Fiscal Years........................................................................88 Fund Balances of Governmental Funds - Last Ten Fiscal Years...............................................91 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ............................92 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years.................95 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years.........................................96 Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago ............................ 98 Secured Property Tax Levies and Collections — Last Ten Fiscal Years.....................................99 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ...................................................100 Directand Overlapping Debt.....................................................................................................101 Computation of Legal Debt Margin - Last Ten Fiscal Years .....................................................102 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years ..........................................103 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago ....................................104 Operating Information: Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years .............................105 Operating Indicators by Function - Last Ten Fiscal Years ........................................................106 Capital Asset Statistics by Function - Last Ten Fiscal Years....................................................107 THIS PAGE INTENTIONALLY LEFT BLANK Jack Tanaka Mayor Ron Everett Mayor Pro Tern Ling -Ling Chang Council Member Carol Herrera Council Member Steve Tye Council Member December 23, 2013 City ®f Diamond Bar 21810 Copley Drive . Diamond Bar, CA 91765-4178 (909) 839-7000 e 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, 2013. 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, 2013, 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, 2013, 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. The independent audit of the financial statements of the City of Diamond Bar was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited City's internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit 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 57 and 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 56,000, 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 70 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. Funds are collected through property tax bills and are disbursed directly to the Los Angeles County Fire District 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 2012-13 has been the first year out of the last several years that has seen meaningful improvement in the national, state and local economies. Unemployment rates have begun to come down and consumer spending is once again on the rise. The housing market has also begun to improve. Homes are starting to gain back the value lost during the recession and property sales are picking up. Fiscal year 2012/13 was a year of "status quo" for the City of Diamond Bar. It was a year of monitoring where revenues were headed, while holding costs to prior year levels wherever possible. FY 2012113 was the first full year that the new City Hall/Library building was fully operational. Staff was able to analyze what the true costs of operating the new building would entail. Some adjustments were made but, overall, the anticipated costs were within range of what was expected. The City's sales tax base saw the most significant growth seen in the last several years with an increase in revenue of 3.25% over last year. The City's interest in promoting economic development has become increasingly important. Since the City is located at a major freeway interchange, several of the City's major sales tax producers are service stations, so the price of gasoline greatly influences the sales tax revenue received. City officials have been working diligently toward its economic development goal to diversify its sales tax base. The coming fiscal year promises to bring new, exciting and more diverse options for residents and businesses to "Shop Diamond Bar". Home values also saw a significant rise during FY 2012/13. The largest revenue source in the City, Property tax revenue, was up 4.0%. The City also saw a significant increase in home sales which is evidenced by an increase of 13.1% in Property Transfer Tax revenue. Another sign that the local economy is starting to recover is the increase in building permit activity. All categories of permits saw a healthy increase in revenue for an overall increase of 19.1% in building permit revenue. FY 2013/14 will see a significant increase in this area due to the sale and development of the area commonly known as "Site D". The Walnut Valley Unified School District owned a piece of property at the south end of the City. The City of Diamond Bar was the owner of a small portion of that property. FY 2012/13 saw the approval of land use to develop this area, now known as the "Willow Heights" project, to include 182 dwelling units and a 2.5 acre public park. This is the first large-scale housing project constructed in the City during the last several 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, 2012. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local fmancial 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 eighteen consecutive years (fiscal years ended 1995 through 2012). 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. V Government Finance Officers Association Presented to For its Comprehensive Annual Financial Report for the Fiscal Year Ended Executive Director/CEO vi ad r a CL Vii to r a� i r r � r Ui UD 2 t� L y fy LL Vii a r IZ 'tii f a r IZ CITY OF DIAMOND BAR ELECTED AND ADMINISTRATIVE OFFICIALS Mayor Mayor Pro Tern Councilmember Councilmember Councilmember City Manager Assistant City Manager City Clerk Director of: Community Services Community Development Finance Information Systems Public Works FISCAL YEAR 12-13 viii Jack Tanaka Ron Everett Ling -Ling Chang Carol Herrera Steve Tye James DeStefano David Doyle Tommye Cribbins Bob Rose Greg Gubman Dianna Honeywell Ken Desforges David Liu 000 • David E. Hale, CPA, CFP • Bryan S. Gruber, CPA 000 LSE • Donald G. Slater, CPA • Deborah A. Harper, CPA • 0 • Richard K. Kikuchi, CPA • Gary A. Cates, CPA • Susan F. Matz, CPA • Michael D. Mangold, CPA CERTIFIED PUBLIC ACCOUNTANTS • Shelly K. Jackley, CPA • David S. Myers, CPA A Division of LSL, CPAs viLmure, peeLer & boucher INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Report on 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, 2013, and the related notes to the 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. Auditors' 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. 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, 2013, and, the respective changes Lance, Soil & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL 714.672.0022 Fax 714.672.0331 www.lslcpas.com Orange County Temecula Valley Silicon Valley Los Angeles County LSL 0 CEN7IFIEU PUBLIC 4CCU UNIhN iS A PAs viLmure, pee.er K boud,e, To the Honorable Mayor and Members of the City Council City of Diamond Bar, California in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund 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 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. Such 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2013 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 2 CERTIFIED PUBLIC ACCBUBFABIS w w...•o.. a Lsl, CP" viLMUte. Peeler & bouOef To the Honorable Mayor and Members of the City Council City of Diamond Bar, California 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 15, 2013 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, 2013. 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 $26,256,051. • The total cost of all City programs equaled $31,031,240. • The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by $402,430,513 (net position). Of this amount, $18,508,423 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 $22,947,509, an increase of $1,224,118 (after a restatement of prior years in the amount of $44,442) in comparison with the prior year. Approximately $13.0 million of the $22.9 million is available for spending at the City's discretion. • At the end of the current fiscal year, unassigned fund balance for the general fund was $13,010,385, or nearly 72% of the amount of general fund expenditures. The General Fund unrestricted balance of $13.0 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. 5 The statement of net position presents 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. 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 two categories: governmental funds, and proprietary 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. 0 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. 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 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. 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 mentioned earlier, net position may serve over time as a useful indicator of the City's financial position. The City of Diamond Bar's assets exceeded liabilities by $402,430,513 at the close of 2013. (see Table 1) By far the largest portion of the City's net position (94 percent) 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. Table 1 CITY OF DIAMOND BAR'S Statement of Net Position Current and other assets Capital assets Total Assets Long-term debt outstanding Other Liabilities Total Liabilities Net position: Net investment in capital assets Restricted Unrestricted Total Net Position Governmental Activities 2013 2012 $28,419,412 $28,061,069 389,876,038 394,374,163 418,295,450 422,435,232 12,301,447 12,000,543 3,563,490 4,574,143 15, 864, 937 16, 574, 686 378,511,311 382,660,310 5,410,779 4,911,745 18,508,423 18,288,491 $402,430,513 $405,860,546 The City's net position decreased by $3,430,033, which includes a restatement of net position in the amount of $1,345,156. This decrease is primarily due to higher depreciation expense which reduces net position At the end of fiscal year 2013 the City reports an increase of $219,932 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 $18,508,423 in Unrestricted Net Position. 0 Table 2 City of Diamond Bar's Changes in Net Position Expenses: General Government 2013 2012 Revenues: 5,831,227 6,104,982 Program revenues: 10,197,098 11,248,137 Charges for services $6,153,683 $6,055,535 Operating grants and contributions 4,024,537 4,992,856 Capital grants and contributions 690,732 1,242,636 General Revenues 31,031,240 32,272,500 Property taxes 4,080,273 3,951,722 Transient occupancy taxes 782,952 692,162 Sales Taxes 3,546,239 3,397,259 Franchise Taxes 1,465,666 1,415,924 Other taxes 333,250 202,951 Motor vehicle in lieu 4,659,994 4,646,985 Use of money & property 6,307 145,408 Other 533,475 46,342 Loss on Disposal of Capital Asset (21,057) - Total revenues 26,256,051 26,789,780 Expenses: General Government 6,942,983 6,384,072 Public Safety 5,831,227 6,104,982 Highways and Streets 10,197,098 11,248,137 Community Development 1,980,646 2,126,906 Parks, Recreation and Culture 5,591,917 5,559,427 Interest and Fiscal Charges 487,369 848,976 Total expenses 31,031,240 32,272,500 Increase (Decrease) in net position (4,775,189) (5,482,720) Net position - beginning 405,860,546 410,783,597 Restatement of Net Position 1,345,156 559,669 Net position - ending $402,430,513 $405,860,546 Revenues In the Statement of Activities, the City's total revenues were $26.3 million, while the total cost of all programs and services was $31.0 million. Revenues this fiscal year were 2.0% lower than those of the prior year. There were increases and decreases across the revenue categories which resulted in the overall change in revenue. The following are highlights of some of the major differences: • As expected, Property Tax revenues were up from FY11-12. This was due to the housing market continuing to improve which afforded greater inflation/Proposition 13 based adjustments. Housing sales also continued to increase which allowed the County to increase overall assessed valuations by 2.24% during 2012 and they are anticipated to increase 4.23% during 2013. 9 • Transient Occupancy Taxes grew by 13.1 % in FY 12/13 as the local economy stabilized and business and vacation travel continued to increase. • Sales tax revenues were up about 4.4% due to continued improvement in the local economy. • Investment Income decreased by 20.0%, excluding the fair market value adjustment of $116,309, due to significantly lower investment yields available in the bond market. With the Federal Reserve's stimulus plan in place for all of FY 2012/13, it was increasingly difficult to find yields over 1.0% on 5 year bonds and the Local Agency Investment Fund (LAIF) rate was at record lows, near 0.25%, much of the year. By the end of FY 12/13 the City's overall investment yield decreased from 0.82% in FY 2011/12 to 0.74% in FY 2012/13. Expenses Once again this year, the City has continued to be very diligent in controlling growth in expenditures. This year expenditures for the City totaled $31.0 million which is approximately $1.2 million, or 3.8% lower than the previous fiscal year. This decrease was due in part to one time expenditures reflected as follows: • There was an increase in General Government expenditures of approximately 8.8% this year. This was due primarily to an increase in capital outlay projects that were not capitalized but rather expensed. • There was a decrease in Public Safety expenditures of approximately 4.4% this year. This was due to the fact that the Community Relations Officer position was vacant for the entire FY 2012/13 due to the retirement of the officer. The position has been filled for FY 2013/14. • The Streets and Highways category was lower this year by a little over $1.0 million. This is due to a decrease in the number of Capital Improvement projects completed during the fiscal year. • Community Development expenditures were lower in 2012/13 by $146,000. The decrease reflects staff vacancies that occurred during the year. • Due to record low interest rates in 2011, the City refinanced the variable rate debt into a fixed rate on December 1, 2011. During FY 2010/11 there was increased interest expense on the long term debt coupled with one time bond issuance costs. This year's interest and fiscal charges are lower due to the absence of one-time costs that were recorded last year. 10 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. At June 30, 2013, the City of Diamond Bar's governmental funds reported combined ending fund balances of $22,947,509, an increase of $1,224,118 in comparison with the prior year. Approximately 56.7% of this amount ($13,006,919) 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 ($27,081), 2) restricted for particular purposes ($5,410,779) or 3) assigned for particular purposes ($4,502,730). 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 $13,010,385, while the total fund balance was $17,536,716. 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 72.0% of total general fund expenditures, while total fund balance represents 97.0% 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 Reserves increased $347,960 (net of a $44,442 prior period adjustment). Factors contributing to the change in General Fund balance reserves are as follows: • General Fund revenues were up significantly ($902,000) from FY11/12. The largest increase was in the Taxes category, primarily due to an increase in property tax, sales tax and franchise tax revenues. Permit revenue was also up due to increased volume in building activity. • The use of money and property category indicates negative General Fund revenue. This is due to the fact that governments are required by the Governmental Accounting Standards Board (GASB) to mark their investments held in their portfolios up or down to the current 11 market value at June 30th each fiscal year. As previously stated, interest rates and market values were down during the year; therefore, the City had to offset the actual interest revenue earned by the unrealized loss in the portfolio. It is the City's policy to hold all investments until maturity or sell them only when it can realize a gain. Due to the City's practice, it is highly unlikely that these losses would ever be realized. • For the past few years the City has been struggling with three landscape and lighting assessment districts which continue to see rising utility and maintenance costs. The assessments for these districts have not been adjusted to keep up with the cost of maintaining these districts. The general fund has continued to subsidize these districts while the City Council considers various options to make these districts self sustaining. • Costs were lower this year in the General Fund as compared to last year due primarily to the fact that last year's numbers included one- time use of General Fund Reserves for the completion of the new City Hall building. FY 2012/13 expenditures are more typical of an average year for the City. • 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 aides the City in containing costs. The Capital Projects Fund ended the year with a fund balance of $2,730 as opposed to a negative of $332,407 in the previous year. Ideally this fund should carry a zero fund balance. Capital project expenditures are accounted for in this fund along with their offsetting revenues and transfers. Due to revenue and expenditure accruals, it is not unusual for the fund to carry a negative balance since many of the capital improvement projects are funded with reimbursable grants. General Fund Budgetary Highlights Original revenue budget projections were increased during the year by 3.5% to reflect the improvement in the local economy and an increase in tax revenues due to the uptick in the housing market. The actual revenue came in lower than anticipated by $504,021. The General Fund Taxes category includes property tax, sales tax, franchise tax and property transfer tax. These revenues came in $355,170 more than anticipated. The variance between the amount budgeted and the amount received is due to growth in all components of this category. 12 There is a large variance in the Intergovernmental category due to the anticipated reimbursement from the County of Los Angeles, for expenditures related to the construction of the Library that was carried over from the prior year and not realized during the year. Originally, it was characterized in the budget as revenue when it really should have been characterized as a receivable on the Balance Sheet. The corresponding expenditures were also re -categorized. Additionally, the City did not sell any Proposition A revenue and convert it to General Fund revenue. These two items account for the $1.6 million that was originally anticipated in the General Fund. General Fund appropriations were increased during the year by $2,054,472 or 10.1% from the original budget to the amended budget. The final expenditures actually came in $2,322,725 less than the amended budget due to the previously mentioned reclassification of expenditures carried over for the building improvements made to the Library. Additional explanations for the difference between budget and actual expenditures include salary savings from staff vacancies, various studies and projects which were either postponed or cancelled and overall cost saving measures implemented by all departments. 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, 2013 amounts to $389,876,038 (net of accumulated depreciation). This investment in capital assets includes land, 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 2013 2012 $6,587,349 $6,587,349 265,614,104 265,614,104 24,719,493 24,763,259 960,421 1,229,664 829,352 1,152, 575 90,757,435 93,693,637 407,884 1,333,575 $389,876,038 $394,374,163 The City's capital assets decreased in value $4,498,125 during FY12/13. This decrease was due primarily to depreciation expense. 13 Construction in progress at the end of the year included four projects in various stages of design or construction. The four projects equaling $407,884 include median projects, drainage and erosion control projects, and a curb ramp installation project. Additional information on the City's capital assets can be found in note 5. Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt equaled $12,301,447. Of this amount $306,687 is the City's Net OPEB obligation. At this time the City is using a pay as you go methodology for funding its OPEB. The City's long-term debt includes the net OPEB obligation which is the difference between the amounts paid on the pay as you go basis versus the actuarially computed Annual Required Contribution. The following table shows the breakdown of the long-term debt outstanding: Variable Rate Lease Revenue Bonds (backed by the Public Financing Authority) $ 11,135,000 Unamortized Bond Premium 229,727 CJIPA General Liability Deposit 88,598 Compensated Absences 541,435 Net OPEB Obligation 306,687 $ 12,301,447 See footnote 6 for additional information on the City's long-term liabilities as of June 30, 2013. 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 2013/2014 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. 14 The City has made a conscientious decision to use some general fund balance reserves for economic development purposes. As a result, the FY 13/14 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. 15 THIS PAGE INTENTIONALLY LEFT BLANK 16 CITY OF DIAMOND BAR STATEMENT OF NET POSITION JUNE 30, 2013 Total Assets Liabilities: Accounts payable Accrued liabilities Accrued interest Unearned revenue Deposits payable Due to other governments Retentions Payable Noncurrent liabilities: Due within one year Due in more than one year Total Liabilities 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 17 418,295,450 1,705,332 321,895 38,746 58,958 1,087,758 349,509 1,292 757,288 11,544,159 15,864,937 378, 511, 311 1,084,434 196,503 3,964,252 165,587 3 18,508,423 $ 402,430,513 Governmental Activities Assets: Cash and investments $ 26,051,238 Receivables: Accounts 513,489 Notes and loans 349,509 Accrued interest 34,363 Prepaid costs 28,454 Due from other governments 1,425,056 Restricted assets: Cash with fiscal agent 15,003 Due from employees 2,300 Capital assets not being depreciated 272,609,337 Capital assets, net of depreciation 117,266,701 Total Assets Liabilities: Accounts payable Accrued liabilities Accrued interest Unearned revenue Deposits payable Due to other governments Retentions Payable Noncurrent liabilities: Due within one year Due in more than one year Total Liabilities 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 17 418,295,450 1,705,332 321,895 38,746 58,958 1,087,758 349,509 1,292 757,288 11,544,159 15,864,937 378, 511, 311 1,084,434 196,503 3,964,252 165,587 3 18,508,423 $ 402,430,513 CITY OF DIAMOND BAR STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 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 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Net(Expenses) Revenue and Changes in Net Position Governmental Activities $ 6,942,983 $ 160,379 $ - $ - $ (6,782,604) 5,831,227 1,167,012 167,795 - (4,496,420) 1,980,646 532,742 324,639 - (1,123,265) 5,591,917 1,689,497 170,189 233,692 (3,498,539) 10,197,098 2,604,053 3,361,914 457,040 (3,774,091) 487,369 - - - (487,369) $31,031,240 $6,153,683 $ 4,024,537 $ 690,732 (20,162,288) General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Othertaxes Motor vehicle in lieu - unrestricted Use of money and property Other 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 See Notes to Financial Statements 18 4,080,273 782,952 3,546,239 1,465,666 333,250 4,659,994 6,307 533,475 (21,057 15,387,099 (4,775,189) 405,860,546 1,345,156 $ 402,430,513 GOVERNMENTALFUNDS GENERALFUND The General Fund has been classified as a major fund and is used to account for resources traditionally associated with government, which are not legally or by sound financial management to be accounted for in another fund. CAPITAL PROJECT FUND The Capital Improvement Fund has been classified as a major fund and is used to account for receipts and expenditures of money for construction of various projects. 19 CITY OF DIAMOND BAR BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2013 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 Retentions payable 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: Capital Projects Emergency contingencies Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Capital Projects Improvement General Fund $18,929,086 $ - Other Total Governmental Governmental Funds Funds $ 5,527,221 $ 24,456,307 376,693 - 121,166 497,859 - - 349,509 349,509 34,363 - - 34,363 26,331 - 750 27,081 1,007,329 70,314 347,413 1,425,056 95,411 - - 95,411 2,300 - - 2,300 15,000 - 3 15,003 $ 20,486,513 $ 70,314 $ 6,346,062 $ 26,902,889 $ 1,194,121 $ 42,978 $ 431,447 $ 1,668,546 305,158 - 16,737 321,895 - - 58,958 58,958 1,087,758 - - 1,087,758 - - 349,509 349,509 14,063 81,348 95,411 1,292 - 1,292 2,587,037 58,333 937,999 3,583,369 362,760 9,251 362,760 9,251 372,011 372,011 26,331 - 750 27,081 - 1,084,434 1,084,434 - - 196,503 196,503 - - 3,964,252 3,964,252 - - 165,587 165,587 - - 3 3 - 2,730 - 2,730 4,500,000 - - 4,500,000 13,010,385 - (3,466) 13,006,919 17,536,716 2,730 5,408,063 22,947,509 $ 20,486,513 $ 70,314 $ 6,346,062 $ 26,902,889 See Notes to Financial Statements 20 CITY OF DIAMOND BAR RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2013 Fund balances of governmental funds 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. Long-term debt and compensated absences that have not been included in the governmental fund activity: Bonds payable $ (11,135,000) Unamortized bond premiums/discounts (229,727) Compensated Absences (541,435) Other post employment benefit obligation (306,687) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. 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. 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. Net Position of governmental activities See Notes to Financial Statements 21 $ 22,947,509 389,525,896 (12,212,849) (38,746) 372,011 1,836,692 $ 402,430,513 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2013 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, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year Capital Projects Funds Capital General Revenues: Improvement Taxes $ 10,200,419 Licenses and permits 1,212,488 Intergovernmental 4,659,994 Charges for services 1,689,497 Use of money and property (6,087) Fines and forfeitures 522,142 Miscellaneous 551,710 Total Revenues 18,830,163 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, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year Capital Projects Funds Capital Other Total Improvement Governmental Governmental Fund Funds Funds $ - $ 550,609 $ 10,751,028 - 26,138 1,238,626 408,481 5,358,877 10,427,352 - 1,548,668 3,238,165 - 36,203 30,116 - - 522,142 - - 551,710 408,481 7,520,495 26,759,139 4,214,834 - - 4,214,834 5,667,176 - 11,438 5,678,614 1,469,061 - 540,979 2,010,040 3,984,553 - 65,608 4,050,161 2,372,321 - 2,890,725 5,263,046 365,174 2,664,079 1,915 3,031,168 - - 335,000 335,000 - - 502,291 502,291 18,073,119 2,664,079 4,347,956 25,085,154 757,044 (2,255,598) 3,172,539 1,673,985 1,611,614 (2,020,698) 2,590,735 993,543 5,195,892 (3,669,503) (5,690,201) (409,084) 2,590,735 (2,675,960) (494,309) 347,960 137 496,579 1,179,676 17,144,314 (332,407) 4,911,484 21,723,391 44,442 - - 44,442 17,188,756 (332,407) 4,911,484 21,767,833 $ 17,536,716 $ 2,730 $ 5,408,063 $ 22,947,509 See Notes to Financial Statements 22 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, 2013 Net change in fund balances - total governmental funds 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 $ 1,099,358 Depreciation Expense (7,054,522) Loss on disposal of capital assets (21,057) 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 335,000 Amortization of bond premium 14,126 CJPIA General Liability Cumulative Deposit 235,647 Other post employment benefit obligation (64,454) Compensated Absences 9,663 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 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. 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. Change in net position of governmental activities See Notes to Financial Statements 23 $ 1,179,676 (5,976,221) 529,982 KTI (489,985) (19,437) $ (4,775,189) CITY OF DIAMOND BAR BUDGETARY COMPARISON STATEMENT GENERALFUND YEAR ENDED JUNE 30, 2013 See Notes to Financial Statements 24 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated $17,188,756 $ 17,188,756 $17,188,756 $ - Resources (Inflows): Taxes 9,751,904 9,845,249 10,200,419 355,170 Licenses and permits 1,033,217 1,133,217 1,212,488 79,271 Intergovernmental 4,826,700 6,268,514 4,659,994 (1,608,520) Charges for services 1,804,787 1,767,884 1,689,497 (78,387) Use of money and property 182,000 167,000 (6,087) (173,087) Fines and forfeitures 486,000 504,000 522,142 18,142 Miscellaneous 13,000 70,300 551,710 481,410 Transfers in 1,567,659 1,189,634 1,611,614 421,980 Amounts Available for Appropriation 36,854,023 38,134,554 37,630,533 (504,021) Charges to Appropriation (Outflow): General government City Council 177,630 177,630 156,874 20,756 City Attorney 285,000 285,000 243,296 41,704 City Manager/Clerk 1,018,554 917,476 897,885 19,591 Finance 432,183 439,683 415,452 24,231 Human resources 258,248 281,913 226,252 55,661 Information systems 746,259 1,175,259 1,064,687 110,572 General government 466,640 416,165 340,171 75,994 Public information 555,565 555,565 523,995 31,570 Civic Center 450,315 487,250 346,222 141,028 Subtotal general government 4,390,394 4,735,941 4,214,834 521,107 Public safety Law Enforcement 5,801,683 5,869,983 5,482,924 387,059 Fire Protection 7,500 7,500 - 7,500 Animal Control 143,141 143,141 128,587 14,554 Emergency preparedness 59,640 59,640 55,665 3,975 Subtotal public safety 6,011,964 6,080,264 5,667,176 413,088 Community development 1,643,562 1,735,331 1,469,061 266,270 Parks, recreation, and culture 3,988,153 4,060,651 3,984,553 76,098 Highways and streets 2,484,803 2,656,360 2,372,321 284,039 Capital outlay 140,500 915,256 365,174 550,082 Transfers out 1,702,694 2,232,739 2,020,698 212,041 Total Charges to Appropriations 20,362,070 22,416,542 20,093,817 2,322,725 Budgetary Fund Balance, June 30 $16,491,953 $ 15,718,012 $17,536,716 $ 1,818,704 See Notes to Financial Statements 24 CITY OF DIAMOND BAR STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2013 Assets: Current: Cash and investments Receivables: Accounts Prepaid costs Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Total Current Liabilities Noncurrent: CJPIA Retrospective Deposit Payable Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position See Notes to Financial Statements 25 Governmental Activities - Internal Service Funds $ 1,594,931 15,630 1,373 1,611,934 350,142 350,142 $ 1,962,076 $ 36,786 36,786 88,598 88,598 125,384 350,142 1,836,692 $ 1,962,076 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Operating Revenues: Sales and service charges Miscellaneous Total Operating Revenues Operating Expenses: Source of supply Pumping 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, as previously reported Restatements Beginning of Fiscal Year, as restated End of Fiscal Year See Notes to Financial Statements 26 Governmental Activities - Internal $ 8,985 8,985 498,857 5,374 26,454 530,685 (521,700) 7,954 (513,746) 494,309 (19,437) 1,940,016 (83,887) 1,856,129 $ 1,836,692 CITY OF DIAMOND BAR STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2013 Cash Flows from Operating Activities: Insurance Premiums (paid)/refund received Payments to suppliers Interfund allocation received Net Cash Provided (Used) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers in 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 Increase (decrease) in retrospective deposit payable Total Adjustments Net Cash Provided (Used) by Operating Activities See Notes to Financial Statements 27 Governmental Activities - Internal Service Funds $ 93,092 (578,350) 6,838 (478,420) 494,309 494,309 (64,063) (64,063) 7,954 7,954 (40,220) 1,635,151 $ 1,594,931 $ (521,700) 26,454 2,347 (1,373) (72,746) 88,598 43,280 $ (478,420) THIS PAGE INTENTIONALLY LEFT BLANK 28 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2013 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. 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. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds are reported as separate columns in the, fund financial statements. 29 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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 and proprietary 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. 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. 30 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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. 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 Capital Improvement Fund has been classified as a major fund and is used to account for receipts and expenditures of money for construction of various projects. The City's fund structure also includes the following fund types Proprietary Funds 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 and computer maintenance. 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. 31 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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. In the fiscal year ended June 30, 2013, the City, with the assistance of an outside consultant, valued and recorded its public domain assets acquired prior to July 1, 2002. The City now has all of its infrastructure asset data valued and recorded in its entirety as of June 30, 2013. 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 and equipment 5 years Infrastructure 10 - 50 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. 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 only one type of item, which arises only under a 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. 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 32 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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. 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. I. 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. 33 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 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 m. 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 - 1st 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. n. 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. An individual governmental 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 34 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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. The Entity implemented GASB Statement 65, Items Previously Reported as Assets and Liabilities. GASB 65, among other things, amends prior guidance with respect to the treatment of debt issuance costs. Debt issuance costs should be recognized in the period incurred rather than reported on the statement of net position as deferred charges and recognized systematically over the life of the debt. The accounting changes of this statement should be applied retroactively and therefore the Entity has reported a restatement of beginning net position for any unamortized debt issuance costs (deferred charges) previously reported on the statement of net position to conform. Note 2: 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. Justice Assistance Grant Fund is not presented in the budgetary comparison schedule. Budget Basis of Accounting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). b. At June 30, 2013, the following funds had deficit fund balances: Other Governmental Funds: Landscape Maintenance District Fund $ 2,716 Note 3: Cash and Investments Cash and Investments Cash and investments at June 30, 2013, consisted of the following: Statement of Net Position: Cash and investments $ 26,051,238 Cash and investments with fiscal agents 15,003 $ 26,066,241 35 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) Cash and investments held by the City at June 30, 2013, consisted of the following: Imprest cash on hand $ 1,500 Demand deposits 985,923 Escrow deposits 15,000 Investments: United States Government Sponsored Enterprise Securities 15,571,064 Local Agency Investment Fund 9,492,751 Held by Bond Trustee: Money Market Mutual Funds 3 $ 26,066,241 Investments Authorized by the California Government Code and the City's Investment Policy The table below 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. Maximum Authorized Investment Type Maturity United States Treasury Obligations 5 years United States Government Sponsored Enterprise Securities 5 years Banker's Acceptance Time Certificates of Deposits Commercial Paper Negotiable Certificates of Deposit Money Market Mutual Funds Repurchase Agreements Medium -Term Corporate Notes (1) Local Agency Investment Fund (LAIF) (1) Notes must be rated "A" or better N/A - Not Applicable 36 180 days 5 years 270 days 5 years 5 years 1 year 5 year N/A Maximum Percentage of Portfolio None 40% 40% None 25% 30% 15% None 30% None Maximum Investment in One Issuer None None 30% None 10% None None None None $ 40,000,000 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) Investments Authorized by Debt Agreements 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 Disclosures Relating to Interest Rate Risk 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 Ona Icsii-r None None None None None None None None 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. 37 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) 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 Local Agency Investment Fund (LAIF) Held by Bond Trustees: Money Market Mutual Funds Disclosures Relating to Credit Risk Remaining Maturity (in Months) 12 Months or Less 1 - 3 years 3 - 5 years Total - $ 498,565 $ 7,855,639 $ 8,354,204 992,844 2,986,801 3,237,215 7,216,860 9,492,751 - - 9,492,751 $ 10,485,598 $ 3,485,366 $ 11,092,854 $ 25,063,818 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: Total as of Investment TVDe June 30.2013 Aaa Unrated US Government Sponsored Securities $ 8,354,204 $ 8,354,204 $ Certificate of Deposits 7,216,860 7,216,860 - Local Agency Investment Fund (LAIF) 9,492,751 - 9,492,751 Held by Bond Trustees: Money Market Mutual Funds 3 3 - Total $ 25,063,818 $ 15,571,067 $ 9,492,751 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, 38 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 3: Cash and Investments (Continued) 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, 2013, the City deposits (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 4: Interfund Transfers and Due To/From Other Funds Transfers In Transfer Out Amount General Fund Other Governmental Funds $ 1,611,614 Capital Improvement Fund General Fund 158,115 Other Governmental Funds 2,432,620 Other Governmental Funds General Fund 993,543 Internal Service Funds General Fund 494,309 $ 5,690,201 Transfers to the General Fund from the Other Governmental Funds were made to reimburse the General Fund for various capital projects and administrative expenditures. 39 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 4: Interfund Transfers and Due To/From Other Funds (Continued) Transfers from the General Fund to the Other Governmental were made to provide for debt service payments and the transfer to the Internal Service funds was made to provide for the annual contribution of the Liability Program of the fiscal year 2012-13. The transfer from the General Fund to the Public Financing Authority Fund was made to fund the principal and interest payments for the bond issued under the Public Financing Authority. Due from other funds Due to other funds Amount General Fund Other Governmental Funds $ 81,348 General Fund Capital Improvement Fund 14,063 $ 95,411 Short-term borrowings were made from the General Fund to the Capital Improvement Fund and Other Governmental Funds due to negative cash. This is expected to be repaid in the immediate future with reimbursements. Note 5: Capital Assets A summary of changes in the Governmental Activities capital assets at June 30, 2013, is as follows: Capital assets not being depreciated: Land Right of way Construction in progress Total Capital Assets Not being Depreciated Capital assets being depreciated: Buildings and improvements Furniture and fixtures Vehicles and equipment Infrastructure Total Capital Assets being Depreciated Less accumulated depreciation for: Buildings and improvements Furniture and fixtures Vehicles and equipment Infrastructure Total Accumulated Depreciation Total Capital Assets Being Depreciated, Net Governmental Activities Capital Assets, Net Balance at Adjusted Balance Balance at July 1, 2012 Adjustments July 1, 2012 Transfers Additions Deletions June 30, 2013 $ 6,587,349 $ $ 6,587,349 $ $ $ $ 6,587,349 265,614,104 265,614,104 265,614,104 1,333,575 1,333,575 (1,707,715) 782,024 407,884 273,535,028 273,535,028 (1,707,715) 782,024 272,609,337 40,115,261 (330,728) 39,784,533 674,662 180,030 40,639,225 1,428,111 1,428,111 - - 1,428,111 2,801,935 (354,984) 2,446,951 - 201,367 404,183 2,244,135 188,391,084 672,079 189,063,163 1,033,053 - 190,096,216 232,736,391 (13,633) 232,722,758 1,707,715 381,397 404,183 234,407,687 15,352,002 (1,458,223) 13,893,779 - 2,025,953 - 15,919,732 198,447 (2,312) 196,135 271,555 - 467,690 1,649,360 4,593 1,653,953 143,957 383,127 1,414,783 94,697,447 1,822 94,699,269 4,639,512 99,338,781 111,897,256 (1,454,120) 110,443,136 7,080,977 383,127 117,140,986 120,839,135 1,440,487 122,279,622 1,707,715 (6,699,580) 21,056 117,266,701 $ 394,374,163 $ 1,440,487 $ 395,814,650 $ - $ (5,917,556) $ 21,056 $ 389,876,038 Depreciation expense was charged to functions in the Statement of Activities as follows: General government $ 709,510 Public safety 11,754 Highways and streets 4,750,508 Community development 1,582,750 Internal Service Funds depreciation charges to program 26,455 $ 7,080,977 40 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long -Term Liabilities Long-term liability activity for the year ended June 30, 2013, was as follows: Bonds Payable 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. 41 Balance Balance at June Due Within July 1, 2012 Additions Deletions 30, 2013 One Year Bonds payable Revenue Bonds $ 11,470,000 $ $ 335,000 $ 11,135,000 $ 350,000 CJPIA General Liability Cumulative Deposit Payable 235,647 - 147,049 88,598 - Compensated absences 551,098 457,074 466,737 541,435 407,288 Net OPEB obligation (Note 10) 242,233 72,644 8,190 306,687 - Total $ 12,498,978 $ 529,718 $ 956,976 12,071,720 $ 757,288 Net unamortized bond premium 229,727 Net Long -Term Debt $ 12,301,447 Bonds Payable 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. 41 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 6: Long -Term Liabilities (Continued) Payments and Associated Debt As of June 30, 2013, 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. Year Ending June 30 Principal 2014 $ 350,000 2015 365,000 2016 385,000 2017 400,000 2018 420,000 2019-2023 2,420,000 2024-2028 3,050,000 2029-2033 3,745,000 Totals $ 11,135,000 Compensated Absences Fixed Rate Debt Interest Total $ 488,906 $ 838,906 478,406 843,406 467,456 852,456 455,906 855,906 435,906 855,906 1,875,181 4,295,181 1,280,006 4,330,006 536,100 4,281,100 $ 6,017,867 $ 17,152,867 The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $541,435 at June 30, 2013, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Note 7: CJPIA Retrospective Deposit Liability Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013, for the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2011 annual retrospective adjustment is included in these balances. The City at June 30, 2013, had a retrospective deposit due of $88,598. Optional Payment Plans When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. Subsequent to the year end, the City voluntarily chose to accelerate payment and paid it off in July, 2013. 42 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 7: CJPIA Retrospective Deposit Liability (Continued) After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms. Retrospective Balances will Change Annually. Retrospective balances will change with each annual computation during the payment deferral period. Member balances may increase or decrease as a result of the most recent year's claim development. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computations. Conversely, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member. More information on the CJPIA retrospective balances can be found on the CJPIA website at CJPIA.org. Note 8: 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 over 120 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. a. Self -Insurance Programs of the Authority Each member pays an annual contribution (formerly called the primary deposit) to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period 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. 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 With respect to the liability program, claims are pooled separately between police and non -police 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 43 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 8: Liability, Property and Workers' Compensation Protection (Continued) 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 in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. On a cumulative basis for all 2012-13 reinsurance contracts the annual aggregate deductible is $3 million. (6) Costs of covered claims from $15 million up to $50 million are covered through excess insurance policies. The overall coverage limit for each member including all layers of coverage is $50 million per occurrence. Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub -limit of $25 million per occurrence. This $25 million subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR, (b) $10 million in reinsurance and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate. Workers' Compensation In the workers' compensation program claims are pooled separately between public safety (police and fire) and non-public safety 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 evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability 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. b. Purchased Insurance Pollution Legal Liability Insurance The City of Diamond Bar participates in the pollution legal liability insurance program (formerly called environmental insurance) 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 44 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 8: Liability, Property and Workers' Compensation Protection (Continued) a $50,000 deductible. The Authority has a limit of $50 million for the 3 -year period from July 1, 2011 through July 1, 2014. Each member of the Authority has a $10 million sub -limit 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 $31,631,644. 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. 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 2012-13. The aforementioned information is not included in the accompanying financial statements. Complete financial statements for the Authority may be obtained at their administrative office located at 8081 Moody Street, La Palma, California 90623. Note 9: Pension Plan Plan Description The City of Diamond Bar participates in the Miscellaneous 2% at 55 Risk Pool of the California Public Employee's Retirement System (PERS), a cost-sharing, multiple -employer defined benefit pension plan administered by PERS. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by State statue and District ordinance. Copies of the PERS' annual financial report may be obtained from the PERS Executive Office 400 P Street, Sacramento, California 95814. Funding Policy The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by PERS. Active City employees are required to contribute 7% of their annual covered salary to PERS. The City makes the contributions required of City employees on their behalf and for their account 45 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 9: Pension Plan (Continued) usually using available resources in the general fund. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The current rate is 11.46% of covered payroll. The City's contributions to CaIPERS for the years ending June 30, 2013, 2012 and 2011, were $318,334, $309,329 and $410,342 respectively and were equal to the required contribution for each year. Plan Description In connection with the retirement benefits for employees described in Note 10, the City provides post-retirement health care benefits to retirees through the California Public Employees' Retirement System Health Benefits program (the PERS Health program). The program is an agent multiple -employer defined benefit health care plan that provides healthcare insurance for eligible retirees, through the City's group plans, which cover both active and retired employees. Employees become eligible to retire and receive City -paid healthcare benefits upon attainment of age 50 and 5 years of covered PERS service, or by qualifying disability retirement status. Retired employees over the age of 65 must join one of the supplemental (Medicare -coordinated) options under the PERS Health Program. Benefits are paid for the lifetime of the retiree. Benefit provisions are established by city ordinance which references state statutes (the Public Employee Medical and Hospital Care Act). The PERS Health Program does not issue a publicly available financial report. Note 10: Postemployment Benefits Other than Pensions Annual OPEB Cost and Net OPEB Obliaation 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 Policy 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 ($112/month for calendar 2012 and $115/month for calendar 2013, increased in all future years according to the rate of medical inflation). The City pays a 0.36% 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, 2013, the City paid $8,190 in health care costs for its retirees and their covered dependents. 46 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 10: Postemployment 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 (in thousands): Annual required contribution $ 79,497 Interest on net OPEB obligation 4,845 Adjustment to annual required contribution (11,698) Annual OPEB cost (expense) 72,644 Contributions made 8,190 Increase in net OPEB obligation 64,454 Net OPEB obligation - beginning of year 242,233 Net OPEB obligation - end of year $ 306,687 Three -Year Trend Information For fiscal year 2013, the City's annual OPEB cost (expense) $72,644 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: Fiscal Year Annual OPEB Actual Ended Costs Contributions 6/30/11 $ 59,033 $ 5,772 6/30/12 74,774 7,512 6/30/13 72,644 8,190 Funded Status and Funding Progress Percentage of Annual OPEB Costs Net OPEB Contributed Obligation 9.78% $ 174,971 10.05% 242,233 11.27% 306,687 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. Actuarial Actuarial Actuarial Percent of Type of Valuation Value of Accrued Funded Covered Covered Interest Valuation Date Assets Liability Ratio Payroll Payroll Rate Actual 7/1/2008 $ - $ 402,007 0.0% Actual 7/1/2011 - 502,013 0.0% 47 3,936,516 10.99% 5.00% 3,959,573 12.68% 5.00% CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 10: Postemployment 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, 2011, actuarial valuation, the projected unit credit method was used. The actuarial assumptions included a discount rate of 5.0% per annum, inflation rate of 3.0%, a rate of return on assets of 5.0% per annum and a healthcare cost trend rate of 8.0% 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 11: 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 12: Construction Commitments The following material construction commitments existed at June 30, 2013: Expenditures as of Remaining Project Name June 30, 2013 Commitments Park Improvements $ 27,750 $ 27,750 Street Improvements 31,453 1,470,637 Transportation Infrastructure 219,810 900,190 Traffic Control Improvements 15,015 424,985 Misc. Improvements 8,953 940,268 $ 302,981 $ 3,763,830 48 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2013 Note 13: Operating Leases The City leases building and office facilities under non -cancelable operating leases. In January 2012, the City relocated to its new City Hall. However, the City will continue to lease meeting room space for the City Council to conduct its meetings. The total costs for such leases were $24,300 for the year ended June 30, 2013. The future minimum lease payments for the lease of building and office facilities are as follows: Year Ending June 30, 2014 2015 2016 2017 Total Note 14: Fund Balance/Net Position Restatements Major governmental funds: $ 24,725 25,219 25,724 12,989 $ 88,657 General Fund To reverse reimbursement from the County library for various construction costs which were booked into revenue. Internal Service Funds To record prior period restatements/adjustments for various capital assets. To record prior period restatements/adjustments for accumulated depreciation Government Wide To write off cost of issuance in the current year due to GASB 65 To record prior period restatements/adjustments for various capital assets. To record prior period restatements/adjustments for accumulated depreciation Total Net Position Restatements 49 $ 44,442 (83,163) (724) (139,773) 69,530 1,454,844 $ 1,345,156 THIS PAGE INTENTIONALLY LEFT BLANK 50 THIS PAGE INTENTIONALLY LEFT BLANK 51 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Prepaid costs 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 Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds State Gas Tax Proposition A Proposition C Transportation Fund Transit Fund Transit Fund Grant Fund $ 549,708 $ 882,308 $ 1,404,350 $ 363 119,542 - - - $ 669,250 $ 882,308 $ 1,404,350 $ 363 $ - $ 214,040 $ 93,795 $ - - 3,854 4,529 - 217,894 98,324 - 669,250 664,414 1,306,026 363 669,250 664,414 1,306,026 363 $ 669,250 $ 882,308 $ 1,404,350 $ 363 52 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 (CONTINUED) Assets: Pooled cash and investments Receivables: Accounts Notes and loans Prepaid costs 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 Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds Integrated Waste Traffic Air Quality Justice Management Improvement Improvement Assistance Fund Fund Fund Grant $ 910,644 $ 475,331 $ 162,956 $ - 121,166 - - - 750 - - - 15,206 - 17,631 - $ 1,047,766 $ 475,331 $ 180,587 $ - $ 9,737 $ - $ 15,000 $ - 7,975 - - - 15,206 8,417 - - 32,918 8,417 15,000 - 1,014,848 - - - - 466,914 - - - - 165,587 - 1,014,848 466,914 165,587 - $ 1,047,766 $ 475,331 $ 180,587 $ - 53 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ Special Revenue Funds Accrued liabilities - - Park and Unearned revenues - 35,335 - - Facility - - 349,509 - Trails & Development 19,270 - Total Liabilities Bikeways Fund Fund CDBG Fund COPS Fund Assets: Community development projects 69,082 502 Pooled cash and investments $ - $ - $ - $ 94,133 Receivables: - - - - Capital Projects Accounts - - - - Notes and loans - - 349,509 - Prepaid costs - - - - Due from other governments 69,082 97,915 20,453 - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 69,082 $ 97,915 $ 369,962 $ 94,133 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 802 $ - Accrued liabilities - - 379 - Unearned revenues - 35,335 - - Due to other governments - - 349,509 - Due to other funds - 62,078 19,270 - Total Liabilities - 97,413 369,960 - Restricted for: Community development projects 69,082 502 2 - Public safety - - - 94,133 Public works - - - - Capital Projects - - - - Debt service - - - - Unassigned - - - - Total Fund Balances 69,082 502 2 94,133 Total Liabilities and Fund Balances $ 69,082 $ 97,915 $ 369,962 $ 94,133 54 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 (CONTINUED) Assets: Pooled cash and investments Receivables: Accounts Notes and loans Prepaid costs 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 Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds Landscape Measure R Asset Seizure Maintenance Local Return $ 66,254 $ 36,116 $ 87,773 $ 857,285 - - 7,584 - $ 66,254 $ 36,116 $ 95,357 $ 857,285 98,073 $ - 98,073 - 66,254 36,116 - - - - - 857,285 - - (2,716) - 66,254 36,116 (2,716) 857,285 $ 66,254 $ 36,116 $ 95,357 $ 857,285 55 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Prepaid costs 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 Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 56 Special Revenue Debt Service Funds Funds Public Total EECBG Grant Financing Governmental Fund Authority Funds $ - $ - $ 5,527,221 - 121,166 - - 349,509 - 750 - - 347,413 - 3 3 $ - $ 3 $ 6,346,062 $ - $ - $ 431,447 - - 16,737 - 58,958 - - 349,509 - 81,348 937,999 - - 1,084,434 - 196,503 - - 3,964,252 - 165,587 - 3 3 - (2,716) 3 5,408,063 $ - $ 3 $ 6,346,062 THIS PAGE INTENTIONALLY LEFT BLANK 57 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: 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 Special Revenue Funds State Gas Tax Proposition A Proposition C Transportation 1,371,632 942,893 782,901 712,436 - 1,039,633 - - 1,374,215 1,986,479 794,198 712,799 - 65,608 - - 1,487,488 678,454 - - - 1,915 - 1,553,096 680,369 - 1,374,215 433,383 113,829 712,799 (1,428,869) - (463,294) (712,436) (1,428,869) - (463,294) (712,436) (54,654) 433,383 (349,465) 363 723,904 231,031 1,655,491 - $ 669,250 $ 664,414 $ 1,306,026 $ 363 58 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: 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 Special Revenue Funds Integrated Waste Traffic Air Quality Justice Management Improvement Improvement Assistance 17,546 92,550 67,336 1,264 509,035 - - - 532,821 95,957 68,459 1,264 353,509 - 67,739 - 353,509 - 67,739 - 179,312 95,957 720 1,264 (62,001) (92,550) - - (62,001) (92,550) - - 117,311 3,407 720 1,264 897,537 463,507 164,867 (1,264) $ 1,014,848 $ 466,914 $ 165,587 $ - 59 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: 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 Special Revenue Funds - - - 6,295 119,731 - 119,731 6,295 64,432 346,327 181,122 94,422 (45,380) (356,551) (181,120) (82,463) (45,380) (356,551) (181,120) (82,463) 19,052 (10,224) 50,030 10,726 $ 69,082 $ 502 $ 2 11,959 - 82,174 2 $ 94,133 Park and Facility Trails & Development Bikeways Fund Fund CDBG Fund COPS Fund - 26,138 - - 64,462 319,128 300,853 100,000 (30) 1,061 - 717 64,432 346,327 300,853 100,717 - - - 6,295 119,731 - 119,731 6,295 64,432 346,327 181,122 94,422 (45,380) (356,551) (181,120) (82,463) (45,380) (356,551) (181,120) (82,463) 19,052 (10,224) 50,030 10,726 $ 69,082 $ 502 $ 2 11,959 - 82,174 2 $ 94,133 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: 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 Special Revenue Funds Landscape Measure R Asset Seizure Maintenance Local Return 550,609 $ - - - - 585,876 1,063 289 550,639 589,886 - 5,143 - - 724,783 - 5,143 724,783 - 1,063 (4,854) (174,144) 589,886 - - 156,087 - (97,173) - - (147,666) (97,173) - 156,087 (147,666) (96,110) (4,854) (18,057) 442,220 162,364 40,970 15,341 415,065 $ 66,254 $ 36,116 $ (2,716) $ 857,285 61 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: 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 62 Special 335,000 - 502,291 Revenue Debt Service 4,347,956 Funds Funds 3,172,539 Public Total EECBG Grant Financing Governmental Fund Authority Funds $ - $ - $ 550,609 - - 26,138 - - 5,358,877 - - 1,548,668 93 4 36,203 93 4 7,520,495 11,438 540,979 65,608 2,890,725 1,915 - 335,000 335,000 - 502,291 502,291 - 837,291 4,347,956 93 (837,287) 3,172,539 168 837,288 993,543 - - (3,669,503) 168 837,288 (2,675,960) 261 1 496,579 (261) 2 4,911,484 $ - $ 3 $ 5,408,063 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE STATE GAS TAX FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 723,904 $ 723,904 $ 723,904 $ - 1,590,105 1,371,632 1,371,632 - 1,800 1,800 2,583 783 2,315,809 2,097,336 2,098,119 783 2,205,282 2,200,966 1,428,869 772,097 2,205,282 2,200,966 1,428,869 772,097 Budgetary Fund Balance, June 30 $ 110,527 $ (103,630) $ 669,250 $ 772,880 63 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION A TRANSIT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Charges for services Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): General government Parks, recreation and culture Highways and Streets Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 64 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 231,031 $ 231,031 $ 231,031 $ - 845,398 845,398 942,893 97,495 1,200,000 1,200,000 1,039,633 (160,367) 1,000 1,000 3,953 2,953 2,277,429 2,277,429 2,217,510 (59,919) 200,000 200,000 - 200,000 74,100 74,100 65,608 8,492 1,678,983 1,678,983 1,487,488 191,495 30,000 - - - 1,983,083 1,953,083 1,553,096 399,987 $ 294,346 $ 324,346 $ 664,414 $ 340,068 64 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION C TRANSIT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Highways and Streets Capital outlay Transfers out Total Charges to Appropriations Variance with Budgetary Fund Balance, June 30 $ 622,117 $ 288,482 $ 1,306,026 $ 1,017,544 65 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,655,491 $ 1,655,491 $ 1,655,491 $ - 701,235 701,235 782,901 81,666 8,000 8,000 11,297 3,297 2,364,726 2,364,726 2,449,689 84,963 703,609 743,384 678,454 64,930 - 2,362 1,915 447 1,039,000 1,330,498 463,294 867,204 1,742,609 2,076,244 1,143,663 932,581 Budgetary Fund Balance, June 30 $ 622,117 $ 288,482 $ 1,306,026 $ 1,017,544 65 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRANSPORTATION GRANT FUND YEAR ENDED JUNE 30, 2013 See Notes to Financial Statements 66 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated $ - $ - $ - $ - Resources (Inflows): Intergovernmental 2,242,000 2,242,000 712,436 (1,529,564) Use of money and property - - 363 363 Amounts Available for Appropriation 2,242,000 2,242,000 712,799 (1,529,201) Charges to Appropriation (Outflow): Transfers out 2,242,000 2,242,000 712,436 1,529,564 Total Charges to Appropriations 2,242,000 2,242,000 712,436 1,529,564 Budgetary Fund Balance, June 30 $ - $ - $ 363 $ 363 See Notes to Financial Statements 66 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE INTEGRATED WASTE MANAGEMENT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Charges for services Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Community development Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 67 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 897,537 $ 897,537 $ 897,537 $ - 20,000 20,000 17,546 (2,454) 500,000 500,000 509,035 9,035 3,000 3,000 6,240 3,240 1,420,537 1,420,537 1,430,358 9,821 436,310 470,300 353,509 116,791 62,001 62,001 62,001 - 498,311 532,301 415,510 116,791 $ 922,226 $ 888,236 $ 1,014,848 $ 126,612 67 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAFFIC IMPROVEMENT FUND YEAR ENDED JUNE 30, 2013 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 463,507 $ 463,507 $ 463,507 $ - Resources (Inflows): Intergovernmental - - 92,550 92,550 Use of money and property - - 3,407 3,407 Amounts Available for Appropriation 463,507 463,507 559,464 95,957 Charges to Appropriation (Outflow): Highways and streets 107,150 112,148 - 112,148 Transfers out 425,544 391,299 92,550 298,749 Total Charges to Appropriations 532,694 503,447 92,550 410,897 Budgetary Fund Balance, June 30 $ (69,187) $ (39,940) $ 466,914 $ 506,854 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 164,867 $ 164,867 $ 164,867 $ - 71,400 71,400 600 600 236,867 236,867 67,336 (4,064) 1,123 523 233,326 (3,541) 69,350 87,203 67,739 19,464 69,350 87,203 67,739 19,464 Budgetary Fund Balance, June 30 $ 167,517 $ 149,664 $ 165,587 $ 15,923 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAILS & BIKEWAYS FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 50,030 $ 50,030 $ 50,030 $ - 50,000 50,000 100,030 100,030 64,462 14,462 (30) (30) 114,462 14,432 50,000 50,000 45,380 4,620 50,000 50,000 45,380 4,620 Budgetary Fund Balance, June 30 $ 50,030 $ 50,030 $ 69,082 $ 19,052 70 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PARK AND FACILITY DEVELOPMENT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Licenses and permits Intergovernmental Use of money and property Amounts Available for Appropriation 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) $ 10,726 $ 10,726 $ 10,726 $ - - - 26,138 26,138 71 218,191 218,191 357,053 138,862 319,046 383,837 356,551 27,286 319,046 383,837 356,551 27,286 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG FUND) YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriation Charges to Appropriation (Outflow): Community development Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 539,966 539,966 300,853 (239,113) 539,966 539,966 300,853 (239,113) 227,291 227,291 119,731 107,560 178,505 165,965 181,120 (15,155) 405,796 393,256 300,851 92,405 Budgetary Fund Balance, June 30 $ 134,170 $ 146,710 $ 2 $ (146,708) 72 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Public safety Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 73 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 82,174 $ 82,174 $ 82,174 $ - 100,000 100,000 100,000 - 500 500 717 217 182,674 182,674 182,891 217 5,000 10,000 6,295 3,705 110,164 110,164 82,463 27,701 115,164 120,164 88,758 31,406 $ 67,510 $ 62,510 $ 94,133 $ 31,623 73 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE ASSET SEIZURE FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 162,364 $ 162,364 $ 162,364 $ 500 500 1,063 563 162,864 162,864 163,427 563 119,418 119,418 97,173 22,245 119,418 119,418 97,173 22,245 Budgetary Fund Balance, June 30 $ 43,446 $ 43,446 $ 66,254 $ 22,808 74 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Public safety Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 40,970 $ 40,970 $ 40,970 $ 200 200 289 89 41,170 41,170 41,259 89 10,000 10,000 5,143 4,857 10,000 10,000 5,143 4,857 Budgetary Fund Balance, June 30 $ 31,170 $ 31,170 $ 36,116 $ 4,946 75 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE LANDSCAPE MAINTENANCE DISTRICT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Use of money and property Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Highways and Streets Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 76 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 15,341 $ 15,341 $ 15,341 $ - 552,492 552,492 550,609 (1,883) - - 30 30 132,287 153,373 156,087 2,714 700,120 721,206 722,067 861 684,779 730,623 724,783 5,840 684,779 730,623 724,783 5,840 $ 15,341 $ (9,417) $ (2,716) $ 6,701 76 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MEASURE R LOCAL RETURN FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriation Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 415,065 $ 415,065 $ 415,065 $ - 525,941 525,941 585,876 59,935 1,500 1,500 4,010 2,510 942,506 942,506 1,004,951 62,445 877,665 849,092 147,666 701,426 877,665 849,092 147,666 701,426 Budgetary Fund Balance, June 30 $ 64,841 $ 93,414 $ 857,285 $ 763,871 77 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE EECBG GRANT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (261) $ (261) $ (261) $ 260,979 260,979 - (260,979) - - 93 93 - - 168 168 260,718 260,718 - (260,718) 260,979 260,979 - 260,979 260,979 260,979 - 260,979 $ (261) $ (261) $ - $ 261 78 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 $ (332,407) $ (360,129) $ 2,730 $ 362,859 79 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (332,407) $ (332,407) $ (332,407) $ - 25,000 27,750 408,481 380,731 6,366,473 6,645,127 2,590,735 (4,054,392) 6,059,066 6,340,470 2,666,809 (3,673,661) 6,391,473 6,700,599 2,664,079 4,036,520 6,391,473 6,700,599 2,664,079 4,036,520 Budgetary Fund Balance, June 30 $ (332,407) $ (360,129) $ 2,730 $ 362,859 79 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2013 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Transfers in Amounts Available for Appropriation Charges to Appropriation (Outflow): Debt service: Principal retirement Interest and fiscal charges Total Charges to Appropriations Budgetary Fund Balance, June 30 0 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2 $ 2 $ 2 $ - - - 4 4 833,981 837,316 837,288 (28) 833,983 837,318 837,294 (24) 335,000 335,000 335,000 - 498,981 502,316 502,291 25 833,981 837,316 837,291 25 $ 2 $ 2 $ 3 $ 1 0 CITY OF DIAMOND BAR COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2013 Assets: Current: Cash and investments Receivables: Accounts Prepaid costs Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Total Current Liabilities Noncurrent: CJPIA Retrospective Deposit Payable Total Noncurrent Liabilities Total Liabilities Net Position: Net investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Governmental Activities - Internal Service Funds Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacemen Maintenance Totals $ 1,238,718 $ 218,416 $ 130,948 $ 6,849 $ 1,594,931 13,483 - - 2,147 15,630 1,373 - - - 1,373 1,253,574 218,416 130,948 8,996 1,611,934 - 27,816 322,326 - 350,142 - 27,816 322,326 - 350,142 $ 1,253,574 $ 246,232 $ 453,274 $ 8,996 $ 1,962,076 $ 36,786 $ - $ 36,786 36,786 - 36,786 88,598 - - - 88,598 88,598 - - - 88,598 88,598 - 36,786 - 125,384 - 27,816 322,326 - 350,142 1,164,976 218,416 94,162 8,996 1,486,550 1,164,976 246,232 416,488 8,996 1,836,692 $ 1,253,574 $ 246,232 $ 453,274 $ 8,996 $ 1,962,076 81 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2013 Governmental Activities - Internal Service Funds Operating Revenues: Sales and service charges Total Operating Revenues Operating Expenses: Insurance Premiums Pumping 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, as originally reported Restatements Beginning of Fiscal Year, as restated End of Fiscal Year Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacemen Maintenance Totals $ - $ - $ - $ 8,985 $ 8,985 8,985 8,985 498,857 - - - 498,857 - - 5,374 - 5,374 - 6,153 20,301 - 26,454 498,857 6,153 25,675 - 530,685 (498,857) (6,153) (25,675) 8,985 (521,700) 5,950 1,576 417 11 7,954 5,950 1,576 417 11 7,954 (492,907) (4,577) (25,258) 8,996 (513,746) 404,309 - 90,000 - 494,309 (88,598) (4,577) 64,742 8,996 (19,437) 1,253,574 237,862 448,580 - 1,940,016 - 12,947 (96,834) - (83,887) 1,253,574 250,809 351,746 - 1,856,129 $ 1,164,976 $ 246,232 $ 416,488 $ 8,996 $ 1,836,692 82 CITY OF DIAMOND BAR COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2013 Governmental Activities - Internal Service Funds Net Cash Provided (Used) by Operating Activities (407,138) Cash Flows from Non -Capital Financing Activities: Cash transfers in 404,309 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 Increase (decrease) in retrospective deposit payable Total Adjustments Net Cash Provided (Used) by Operating Activities Increase in Fair Value of Investments Gain/(Loss) on Investments (78,120) 6,838 (478,420) 90,000 - 494,309 404,309 - 90,000 - 494,309 - - (64,063) (64,063) - - (64,063) - (64,063) 5,950 1,576 417 11 7,954 5,950 1,576 Computer Building (1,373) - - (1,373) Self Equipment Equipment Facility & 1,576 (51,766) Insurance Replacement Replacement Maintenance 182,714 - 1,635,151 Fund Fund Fund Fund Totals Cash Flows from Operating Activities: 218,416 $ 130,948 $ 6,849 $ 1,594,931 Insurance Premiums (paid)/refund received $ 93,092 $ - $ - $ $ 93,092 Payments to suppliers (500,230) - (78,120) (578,350) Interfund allocation received - - - 6,838 6,838 Net Cash Provided (Used) by Operating Activities (407,138) Cash Flows from Non -Capital Financing Activities: Cash transfers in 404,309 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 Increase (decrease) in retrospective deposit payable Total Adjustments Net Cash Provided (Used) by Operating Activities Increase in Fair Value of Investments Gain/(Loss) on Investments (78,120) 6,838 (478,420) 90,000 - 494,309 404,309 - 90,000 - 494,309 - - (64,063) (64,063) - - (64,063) - (64,063) 5,950 1,576 417 11 7,954 5,950 1,576 417 11 7,954 (1,373) - - (1,373) - - (72,746) (72,746) 31121 1,576 (51,766) 6,849 (40,220) 1,235,597 216,840 182,714 - 1,635,151 $ 1,238,718 $ 218,416 $ 130,948 $ 6,849 $ 1,594,931 $ (498,857) $ (6,153) $ (25,675) $ 8,985 $ (521,700) - 6,153 20,301 26,454 4,494 - - (2,147) 2,347 (1,373) - - (1,373) - - (72,746) (72,746) 88,598 - - 88,598 91,719 6,153 (52,445) (2,147) 43,280 $ (407,138) $ - $ (78,120) $ 6,838 $(478,420) 83 THIS PAGE INTENTIONALLY LEFT BLANK ms DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2013 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 85 Governmental activities: Net investment in capital assets Restricted for: Capital projects Community development Public safety Public works Debt service Unrestricted Total governmental activities net position Source: City Finance Department City of Diamond Bar Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 $ 10,844,807 $ 10,692,694 $ 14,593,935 $ 375,216,400 $ 370,949,296 241,767 3,775,552 3,323,474 3,446,872 2,912,276 1,398,057 1,296,806 1,013,495 889,176 245,763 243,697 321,747 309,533 31,231,827 29,775,169 29,461,178 34,072,884 36,236,504 $ 42,318,401 $ 45,887,235 $ 48,919,090 $ 414,071,398 $ 411,296,785 0 Schedule 1 2009 2010 2011 2012 2013 $ 367,529,907 $ 377,940,738 $ 381,985,940 $ 382,660,310 $ 378,511,311 3,526,991 2,260,872 146, 567 163,603 165,587 568,280 725,667 1,644,861 958,293 1,084,434 541,482 559,920 453,730 285,508 196,503 3,636,487 3,504,339 3,964,252 305,915 319,815 333,694 2 3 34,554,084 34,215,610 22,582,318 18,288,491 18,508,423 $ 407,026,659 $ 416,022,622 $ 410,783,597 $ 405,860,546 $ 402,430,513 87 Expenses: Governmental activities: General government Public safety Highways and streets Community development Parks, recreation and culture Interest on long-term debt Total general revenues 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 Othertaxes 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, 2004 2005 2006 2007 2008 $ 3,713,530 $ 3,997,319 $ 4,203,123 $ 4,784,314 $ 4,473,666 4,875,823 4,969,183 5,418,005 4,876,435 4,944,729 1,365,737 4,622,014 5,240,568 14,019,550 12,034,669 5,724,606 1,050,025 2,759,718 2,292,757 2,251,196 2,580,454 3,814,887 3,737,071 4,779,588 5,188,977 171,223 270,735 423,320 498,042 392,548 18,431,373 18,724,163 21,781,805 31,250,686 29,285,785 225,656 486,925 707,272 262,541 225,553 733,902 1,159,264 1,277,170 1,512,195 1,176,931 529,330 1,328,637 1,555,993 3,493,798 2,851,187 933,985 7,888 16,841 21,297 23,351 610,772 1,147,088 1,260,849 1,385,788 1,581,597 4,068,446 4,040,785 5,281,308 6,968,824 4,307,074 261,994 4,386,800 1,150 1,254,314 219,193 7,364,085 8,170,587 10,100,583 14,898,757 10,384,886 2,717,949 3,191,006 3,555,244 3,754,955 3,927,073 628,564 717,879 718,889 774,757 800,390 3,167,901 3,508,341 3,949,349 3,943,345 4,102,177 912,531 941,319 996,567 1,064,621 1,024,710 367,464 413,247 416,423 331,096 283,433 2,716,134 4,386,800 3,663,061 4,356,641 4,563,127 182,069 532,091 1,051,922 1,476,010 1,420,988 250,250 676,292 361,622 41,362 4,388 10,942,862 14,366,975 14,713,077 15,742,787 16,126,286 (124,426) 3,813,399 3,031,855 (609,142) (2,774,613) 40,431,580 42,318,401 45,887,235 414,680,540 414,071,398 $ 40,307,154 $46,131,800 $48,919,090 $ 414,071,398 $ 411,296,785 Schedule 2 2009 2010 2011 2012 2013 $ 5,159,300 $ 4,973,685 $ 6,370,986 $ 6,384,072 $ 6,942,983 5,396,083 5,526,099 5,591,049 6,104,982 5,831,227 13,931,211 12,287,325 10,619,860 11,248,137 10,197,098 1,959,303 1,624,547 1,969,540 2,126,906 1,980,646 4,950,687 5,091,215 5,153,264 5,559,427 5,591,917 177,633 57,948 72,592 848,976 487,369 31,574,217 29,560,819 29,777,291 32,272,500 31,031,240 132,262 131,633 118,016 247,248 160,379 1,017,336 1,014,237 996,409 1,050,851 1,167,012 1,732,985 2,070,167 2,400,272 2,555,900 2,604,053 17,602 21,106 517,515 447,951 532,742 1,705,282 1,754,789 1,829,409 1,753,585 1,689,497 5,588,818 4,358,895 3,685,378 4,992,856 4,024,537 2,272,580 15,960,279 40,779 1,242,636 690,732 12,466,865 25,311,106 9,587,778 12,291,027 10,868,952 4,001,276 3,837,288 4,187,896 3,951,722 4,080,273 633,075 569,916 642,509 692,162 782,952 3,085,223 3,122,229 3,355,127 3,397,259 3,546,239 1,093,039 1,115,980 1,259,471 1,415,924 1,465,666 199,365 259,384 172,687 202,951 333,250 4,687,515 4,599,922 4,766,225 4,646,985 4,659,994 833,270 618,963 474,598 145,408 6,307 304,463 7,090 91,975 46,342 533,475 (21,057) 14, 837, 226 14,130, 772 14, 950,488 14,498, 753 15, 387, 099 (4,270,126) 9,881,059 (5,239,025) (5,482,720) (4,775,189) 411,296,785 407,026,659 416,022,622 410,783,597 405,860,546 (885,096) 559,669 1,345,156 $ 407,026,659 $ 416,022,622 $ 410,783,597 $ 405,860,546 $ 402,430,513 THIS PAGE INTENTIONALLY LEFT BLANK a Schedule 3 City of Diamond Bar Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2011 2012 2013 General fund: Fiscal Year Ended June 30, Nonspendable: 2004 2005 2006 2007 2008 2009 2010 General fund: Emergency contingencies 4,500,000 4,500,000 4,500,000 Unassigned 16,726,964 Reserved $ 866,843 $ 1,125,918 $ 1,310,172 $ 1,893,287 $ 1,864,387 $ 1,612,181 $ 1,955,477 Unreserved 21,796,659 24,809,721 25,103,444 28,568,263 31,065,127 30,041,357 28,841,621 Total general fund 22,663,502 25,935,639 26,413,616 30,461,550 32,929,514 31,653,538 30,797,098 All other governmental funds: Comm development projects 1,644,861 958,293 1,084,434 Reserved 105,861 5,555,988 2,274,829 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: 146,567 164,867 165,587 Debt service 333,694 2 3 Special revenue funds 6,043,352 6,111,202 5,485,933 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund 505,915 274,426 (3,466) Total all other governmental funds Capital projects funds 241,767 (5,443,309) (2,612,373) (4,681,728) (5,703,854) (2,701,642) (2,020,782) Total all other governmental funds 6,896,895 6,498,307 5,148,389 4,366,089 5,061,948 5,476,863 4,932,937 Total fund balances $ 29,560,397 $ 32,433,946 $ 31,562,005 $ 34,827,639 $ 37,991,462 $ 37,130,401 $ 35,730,035 2011 2012 2013 General fund: Nonspendable: Prepaid costs $ 41,451 $ 28,114 $ 26,331 Committed to: Emergency contingencies 4,500,000 4,500,000 4,500,000 Unassigned 16,726,964 12,616,200 13,010,385 Total general fund 21,268,415 17,144,314 17,536,716 All other governmental funds: Nonspendable: Prepaid costs 750 Restricted for: Comm development projects 1,644,861 958,293 1,084,434 Public safety 453,730 285,508 196,503 Highways and streets 3,271,595 3,170,407 3,964,252 Capital Projects 146,567 164,867 165,587 Debt service 333,694 2 3 Assigned to: Capital Projects 2,730 Unassigned (3,466) Total all other governmental funds 5,850,447 4,579,077 5,410,793 Total fund balances $ 27,118,862 $ 21,723,391 $ 22,947,509 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 91 Revenues: Taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Other Total revenues Expenditures: Current: General government Public safety Highway and streets 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 Total other financing sources (uses) Net changes in fund balances Debt service as a percentage of noncapital expenditures Source: City Finance Department City of Statistical Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 $ 7,759,331 $ 8,632,837 $ 9,508,757 $ 9,876,760 $ 10,165,881 555,232 593,778 504,908 541,382 543,561 6,353,152 8,306,557 8,821,141 11,169,052 9,896,948 709,011 761,040 870,314 1,002,210 1,111,655 733,903 713,201 589,922 546,902 637,484 1,457,345 1,732,555 2,389,149 4,247,626 3,121,476 395,929 654,066 1,250,570 1,716,194 1,629,257 234,951 480,740 792,216 767,457 826,177 18,198,854 21,874,774 24,726,977 29,867,583 27,932,439 3,663,055 3,787,005 3,551,659 4,402,235 3,987,656 4,857,179 4,954,630 5,404,259 4,880,290 4,933,958 1,365,737 4,301,146 4,769,497 5,114,274 4,926,418 2,114,090 2,750,815 2,613,834 3,475,549 3,714,762 3,419,856 1,050,025 2,748,539 2,292,757 2,246,496 9,261,289 1,682,830 5,320,597 5,344,935 4,271,890 235,000 240,000 255,000 145,580 237,487 404,075 493,840 411,583 24,826,786 18,763,938 25,047,460 26,243,880 24,747,763 (6,627,932) 3,110,836 (320,483) 3,623,703 3,184,676 9,906,970 2,363,367 6,469,523 6,030,764 7,266,149 (10,090,723) (2,600,654) (6,733,961) (6,354,106) (7,608,749) (183,753) (237,287) (264,438) (323,342) (342,600) (6,811,685) 0.82% 92 2,873,549 (584,921) 3,300,361 1.38% 3.18% 2.91% 2,842,076 2.89% Schedule 4 2009 2010 2011 2012 2013 $ 9,119,375 $ 8,591,893 $ 9,646,883 $ 9,664,801 $ 10,200,419 550,822 556,989 556,562 547,209 550,609 12,081,466 11,478,456 9,441,959 11,053,326 10,427,352 1,460,828 3,191,416 3,390,367 3,190,675 3,238,165 601,533 607,936 567,575 509,166 522,142 1,445,324 640,287 818,913 1,127,569 1,238,626 938,053 648,503 499,377 183,507 30,116 1,018,956 30,766 113,578 54,634 551,710 27,216,357 25,746,246 25,035,214 26,330,887 26,759,139 5,071,860 4,435,858 4,977,021 5,485,001 4,214,834 5,407,476 5,524,279 5,580,507 5,731,595 5,678,614 5,607,870 5,183,964 5,002,456 6,609,087 5,263,046 3,673,282 3,655,029 3,712,194 4,090,551 4,050,161 1,945,951 1,604,220 1,960,125 2,114,433 2,010,040 5,508,167 5,161,924 11,480,595 6,702,615 3,031,168 265,000 280,000 290,000 12,510,000 335,000 187,212 33,904 37,461 406,626 502,291 27,666,818 25,879,178 33,040,359 43,649,908 25,085,154 (450,461) (132,932) (8,005,145) (17,319,021) 1,673,985 11,790,000 - 252,381 - 6,629,225 4,379,718 2,929,528 6,085,337 5,195,892 (7,039,825) (4,795,374) (3,535,556) (6,494,449) (5,690,201) (410,600) (415,656) (606,028) 11,633,269 (494,309) (861,061) (548,588) (8,611,173) (5,685,752) 1,179,676 1.77% 1.35% 1.45% 35.00% 3.49% 93 THIS PAGE INTENTIONALLY LEFT BLANK 94 Net Assessed Value $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 o $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 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. 95 Schedule 5 City of Diamond Bar Assessed and Estimated Actual Values of Taxable Property 2003/04 - 2012/13 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 2003-04 $ 5,051,058,871 $ 77,407,924 $ 140,122 $ 47,621,182 $ 5,080,985,735 0.05134 8.36% 2004-05 5,410,300,487 76,173,121 174,846 39,831,091 5,446,817,363 0.05313 7.20% 2005-06 5,842,972,449 83,223,023 163,090 51,408,286 5,874,950,276 0.05288 7.86% 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% Net Assessed Value $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 o $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 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. 95 Agency Basic Levy* County Detention Facilities 1987 Debt LA County Flood Control Metropolitan Water District Mt. San Antonio College Pomona Unified School Dist Rowland Heights Unified Walnut Valley Unified School Dist Total Direct & Overlapping Tax Rates City's Share of 1% Levy Per Prop 13* General Obligation Debt Rate Redevelopment Rate* Total Direct Rate* City of Diamond Bar Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Value) 2003/04 2004/05 2005/06 2006/07 2007/08 1.00000 1.00000 1.00000 1.00000 1.00000 0.00099 0.00092 0.00080 0.00066 0.00000 0.00046 0.00025 0.00005 0.00005 0.00000 0.00610 0.00580 0.00520 0.00470 0.00450 0.01525 0.01473 0.02122 0.02530 0.01750 0.12633 0.12910 0.12488 0.12401 0.11379 0.03780 0.03885 0.03633 0.07429 0.06944 0.09660 0.09515 0.09140 0.08749 0.08462 1.2835 1.2848 1.2799 1.3165 1.2899 0.05192 0.05192 0.05192 0.05192 0.05192 0.05134 0.05313 0.05288 0.05280 0.05485 * 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 incremental 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 Schedule 6 2008/09 2009/10 2010/11 2011/12 2012/13 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 0.00430 0.00430 0.00370 0.00370 0.00350 0.02333 0.02571 0.02636 0.02642 0.02896 0.11577 0.14546 0.17721 0.17364 0.18488 0.07029 0.06769 0.07538 0.09195 0.10053 0.11297 0.11674 0.11839 0.11735 0.12554 1.3267 1.3599 1.4010 1.4131 1.4434 0.05192 0.05192 0.05192 0.05192 0.05192 0.05270 0.05274 0.05270 0.05268 0.05267 97 Top Ten Total City Total Taxpayers Nine Years Ago Opus Real Estate California IV LP Gem Gateway Limited 1022 South Grand Avenue Apartments Country Hills DB LLC Bridge Gate Partners LP IRP Muller Associates LLC Danari Diamond Bar LLC ETAL Margaret M. Tam Trust Emerald Pointe Apartments LLC Shea Properties LLC Top Ten Total City Total Source: Hdl Coren & Cone. $ 261,613,766 $ 7,469,396,334 2003-04 Assessed Valuation 3.50% Percentage of Total Net Assessed Valuation $ 28,335,498 0.56% Schedule 7 0.49% City of Diamond Bar 0.45% 21,118,272 Top 10 Property Taxpayers 18,465,893 0.36% Current Year and Nine Years Ago 0.34% 15,913,505 2012-13 Percentage of Total Current Taxpayers Assessed Valuation Net Assessed Valuation Diamond Bar Gateway Corp Inc $ 40,000,000 0.54% VIF II Hampton at Diamond Bar LLC 38,877,824 0.52% Roic California LLC 30,937,432 0.41% Target Corporation 26,794,346 0.36% Pacifica Trenton Holdings -2 LLC 25,800,000 0.35% Muller Rock 2 Gateway 25,623,828 0.34% Hua Qing Enterprice LLC 22,022,250 0.29% Margaret M. Tam Trust ETAL 17,668,775 0.24% Emerald Pointe Apartments LLC 17,164,322 0.23% Roic DBTC LLC 16,724,989 0.22% Top Ten Total City Total Taxpayers Nine Years Ago Opus Real Estate California IV LP Gem Gateway Limited 1022 South Grand Avenue Apartments Country Hills DB LLC Bridge Gate Partners LP IRP Muller Associates LLC Danari Diamond Bar LLC ETAL Margaret M. Tam Trust Emerald Pointe Apartments LLC Shea Properties LLC Top Ten Total City Total Source: Hdl Coren & Cone. $ 261,613,766 $ 7,469,396,334 2003-04 Assessed Valuation 3.50% Percentage of Total Net Assessed Valuation $ 28,335,498 0.56% 24,977,750 0.49% 22,628,277 0.45% 21,118,272 0.42% 18,465,893 0.36% 17,102,423 0.34% 15,913,505 0.31% 15,325,465 0.30% 14,894,980 0.29% 14,735,174 0.29% $ 193,497,237 $ 5,080,985,735 3.81% Schedule 8 City of Diamond Bar Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Fiscal Year Taxes Levied Collected within the Collections in Ended for the Fiscal Year of Levy Subsequent June 30 Fiscal Year Amount % to Levy Years % to Levy 2004 $ 2,653,970 $ 2,538,085 95.63% $ 115,884 4.37% 2005 2,844,211 2,713,312 95.40% 130,899 4.60% 2006 3,068,292 2,761,804 90.01% 306,489 9.99% 2007 3,351,647 3,090,289 92.20% 261,359 7.80% 2008 3,598,889 3,276,908 91.05% 321,981 8.95% 2009 3,760,371 3,436,585 91.39% 323,786 8.61% 2010 3,704,133 3,412,996 92.14% 291,137 7.86% 2011 3,750,806 3,505,792 93.47% 245,015 6.53% 2012 3,844,101 3,506,696 91.22% 337,405 8.78% 2013 3,908,533 3,778,461 96.67% 130,072 3.33% Source: Los Angeles County Auditor/Controller. City Finance Department City of Diamond Bar Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year Ended June 30 Lease Revenue Bonds (a) 2004 $ 13,755,000 2005 13,655,000 2006 13,520,000 2007 13,280,000 2008 13,025,000 2009 12,760,000 2010 12,480,000 2011 12,190,000 2012 11,713,853 2013 11,364,727 Other Total Bond & Governmental Loans Activities Schedule 9 Total % of Debt Primary Personal Per Government Income (b) Capita (b) 0 $ 13,755,000 $ 13,755,000 0.84% 232 0 13,655,000 13,655,000 0.79% 229 0 13,520,000 13,520,000 0.74% 227 0 13,280,000 13,280,000 0.70% 223 0 13,025,000 13,025,000 0.68% 217 0 12,760,000 12,760,000 0.68% 212 0 12,480,000 12,480,000 0.64% 225 0 12,190,000 12,190,000 0.66% 218 0 11,713,853 11,713,853 0.63% 210 0 11,364,727 11,364,727 0.57% 203 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 100 City of Diamond Bar Direct and Overlapping Debt June 30, 2013 (unaudited) Gross Bonded Debt Balance % Applicable To City (1) Schedule 10 Net Bonded Debt Direct Debt as of June 30, 2013 Diamond Bar Lease Revenue Bond $ 11,364,727 100.000 $ 11,364,727 Overlapping Debts as of June 30, 2013 (2) 330.10 Metropolitan Water District 79,696,126 0.846 674,409 809.51 Mt San Antomio CCD 2001 Series 2004B 4,225,000 10.894 460,292 809.52 Mt San Antomio CCD 2005 & 2012 Refunding Bond 41,010,843 10.857 4,452,522 809.53 Mt San Antomio CCD 2001 Series C 2006 78,755,000 10.894 8,579,961 809.54 Mt San CD DS 2001, 2008 Series D 23,086,083 10.894 2,515,113 915.62 Pomona Unified School District 2000 Ser A 16,030,000 20.295 3,253,260 915.64 Pomona Unified SD Refunding 2001 Ser A 16,095,000 20.295 3,266,451 915.68 Pomona Unified School District 2002 Ser D 12,135,000 20.295 2,462,776 915.69 Pomona Unified School District 2002 Ser E 11,530,000 20.295 2,339,993 915.70 Pomona Unified School DS 2007 & 2012 Ref Bds 8,246,872 20.295 1,673,688 915.71 Pomona Unified School District 2008 Series A 33,055,000 20.295 6,708,453 915.72 Pomona USD DS 2008 Series B 3,890,000 20.295 789,469 915.73 Pomona USD 2008 Series C 57,400,000 20.295 11,649,227 915.74 Pomona USD DS 2012 Refunding Bond Series A 24,655,000 20.295 5,003,688 915.75 Pomona USD DS 2012 Refunding Bond Series B 29,595,000 20.295 6,006,252 915.76 Pomona USD DS 2008 Series D QSCBS 20,970,000 20.295 4,255,824 980.55 Walnut Valley Unified SD Refund Series 1997 A 10,330,000 59.310 6,126,711 980.59 Walnut Valley Unified SD 2000 Series D 12,570,543 59.310 7,455,574 980.60 Walnut Valley Unified USD DS 2000 Series E 6,001,837 59.310 3,559,682 980.61 Walnut Valley Unified SD 2005 Ref Bond 12,925,000 59.310 7,665,802 980.62 Walnut Valley Unified SD 2007 Series A (Measure S) 27,735,000 59.310 16,449,595 980.63 Walnut Valley Unified SD 2007 Series A (Measure Y) 6,575,887 59.310 3,900,151 980.64 Walnut Valley Unified SD 2011 Refunding 20,720,000 59.310 12,289,007 980.65 Walnut Valley USD 2007 Series B (Measure S) 19,996,838 59.310 11,860,100 980.66 Walnut Valley USD 2007 Series B (Measure Y) 7,990,547 59.310 4,739,184 Total Overlapping Debts: 585,220,576 138,137,184 Grand Total Direct and Overlapping Debt: $ 596,585,303 $ 149,501,911 Debt to Assessed Valuation Ratios as of June 30, 2013: 2012/13 Net Assessed Valuation: $ 7,469,396,334 Direct Debt 0.15% $203 2012 Total City Population: 56,099 Overlapping Debt 1.85% $2,462 Total Debt 2.00% $2,665 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 101 Schedule 11 City of Diamond Bar Computation of Legal Debt Margin Last Ten Fiscal Years (unaudited) Fiscal Year 2004 2005 2006 2007 2008 Net assessed value $ 5,080,985,735 $ 5,446,817,363 $ 5,874,950,276 $ 6,421,927,342 $ 6,894,023,460 Add back: Exemptions 47,621,182 39,831,091 51,408,286 28,682,577 39,859,238 Gross assessed value 5,128,606,917 5,486,648,454 5,926,358,562 6,450,609,919 6,933,882,698 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,282,151,729 1,371,662,114 1,481,589,641 1,612,652,480 1,733,470,675 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 192,322,759 205,749,317 222,238,446 241,897,872 260,020,601 City Debts: 12,760,000 12,480,000 12,190,000 11,470,000 11,135,000 Revenue bonds 13,755,000 13,755,000 13,520,000 13,280,000 13,025,000 Legal debt margin $ 178,567,759 $ 191,994,317 $ 208,718,446 $ 228,617,872 $ 246,995,601 Fiscal Year 2009 2010 2011 2012 2013 Net assessed value $ 7,201,620,222 $ 7,095,299,195 $ 7,193,712,566 $ 7,350,019,952 $ 7,469,396,334 Add back: Exemptions 48,909,164 66,422,679 70,706,628 74,296,191 78,856,697 Gross assessed value 7,250,529,386 7,161,721,874 7,264,419,194 7,424,316,143 7,548,253,031 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,812,632,347 1,790,430,469 1,816,104,799 1,856,079,036 1,887,063,258 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 271,894,852 268,564,570 272,415,720 278,411,855 283,059,489 City Debts: Revenue bonds 12,760,000 12,480,000 12,190,000 11,470,000 11,135,000 Legal debt margin $ 259,134,852 $ 256,084,570 $ 260,225,720 $ 266,941,855 $ 271,924,489 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 102 City of Diamond Bar Demographic and Economic Statistics General Information Date of Incorporation April 18, 1989 Form of Government Council -Manager Area 14.76 Square Miles Miles of Streets 128 Public Safety Police Protection Los Angeles County Sheriff Department Fire Protection Los Angeles County Fire Department Water Services Service Provider Walnut Valley Water District Education Full Value Sales 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 Demoaraohic and Statistical Information (Last Ten Calendar Years Sinale Familv Residential Full Value Sales (01/01/2011-07/31/2013 Year Full Value Sales Personal Per Capita 581 Calendar 2012 Income Personal Unemployment Year Population (In Thousands) Income Rate 2003 58,843 1,555,942 26,442 4.90% 2004 59,304 1,642,869 27,702 4.60% 2005 59,528 1,721,421 28,918 3.80% 2006 59,497 1,827,966 30,724 3.40% 2007 59,629 1,903,585 31,924 3.60% 2008 59,920 1,929,498 32,201 5.30% 2009 60,184 1,885,698 31,332 8.30% 2010 55,766 1,960,418 35,154 9.10% 2011 55,819 1,846,158 33,074 8.80% 2012 56,099 1,991,290 35,496 6.60% Sinale Familv Residential Full Value Sales (01/01/2011-07/31/2013 Year Full Value Sales Average Price 2011 581 $ 488,082 2012 771 $ 488,479 2013 494 $ 571,660 Sources: * U.S. Census Bureau HdL Cornen & Cone City Finance Department 103 Schedule 12 Pop 25+ Pop 25+ Median High School Bachelor Age Degree Degree 39.2 93.1% 46.7% 39.8 92.0% 47.6% 40.5 92.5% 47.8% 40.6 92.6% 48.8% Median Price $410,000 $ 420,000 $ 482,500 Median % Change 2.44% 14.88% Schedule 13 City of Diamond Bar Principal Employers (unaudited) Current Fiscal Year and Nine Fiscal Years Ago Note: Total city employment 30,600 in 2013, provided by California Labor Market. Data Source: Info USA HdL, 104 2013 Number of Percent of Company Name Employees Rank Employment South Coast Air Quality Management 786 1 2.66% Walnut Valley Unified School District 520 2 1.76% Video Transcription Services 500 3 1.69% Travelers 401 4 1.35% Magan Medical Inc 300 5 1.01% Pomona Unified School District 210 6 0.71% Carrescia James -First Team Sns 200 7 0.68% Diamond Bar High School 200 8 0.68% Rapid Rack Industries Inc 151 9 0.51% First Team Real Estate 150 10 0.51% Total 3,418 11.17% 2004 Number of % of City Company Name Employees Rank Employment South Coast Air Quality Management 725 1 n/a Avnet 600 2 n/a Acosta Sales & Marketing Group 450 3 n/a Allstate Insurance Co 200 4 n/a Diamond Bar High School 200 5 n/a Century 21 Diamond Realty 150 6 n/a Starside Security & Investigation 120 7 n/a Southwest Patrol 120 8 n/a Biosense Webster Inc 100 9 n/a First Mortgage Corp 100 10 n/a Total 2,765 n/a Note: Total city employment 30,600 in 2013, provided by California Labor Market. Data Source: Info USA HdL, 104 Function Schedule 14 City of Diamond Bar Full-time and Part-time City Government Employees by Function/Program Fiscal Year Ended June 30, 2009 2010 2011 2012 2013 General government 25 21 Community development 7 8 Community services 71 75 Public works 10 9 Total 113 113 Function 8 8 8 75 75 87 9 9 8 116 115 127 Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 General government 25 25 22 21 24 Community development 5 7 8 8 6 Community services 45 74 77 74 69 Public works 6 7 7 8 10 Total 81 113 114 111 109 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 employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Source: City Finance Department 105 Schedule 15 (a) Unavailable Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Dept 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. 106 City of Diamond Bar Operating Indicators by Function Last Ten Fiscal Years Fiscal Year Ended June 30, Function 2009 2010 2011 2012 2013 Police:(in fiscal year) (1) Physical arrests 591 700 647 737 630 Street Sweeping Parking Citation 5,103 5,110 4,137 3,766 3,776 Fire: (in fiscal year) (2) Number of emergency calls 2,561 2,654 2,594 2,516 2,604 Inspections 1,100 979 1,202 1,287 1,477 Public works: (in fiscal year) (3) Street resurfacing (miles) 13.8 23.3 12.0 9.2 8.3 Parks and recreation:(in fiscal year)(4) Number of recreation classes(5) 1,315 2,456 2,115 2,096 2,082 Number of facility rentals 4,299 4,111 4,147 4,270 4,332 Fiscal Year Ended June 30, Function 2004 2005 2006 2007 2008 Police: (1) Physical arrests 481 520 558 582 543 Street Sweeping Parking Citation 6,710 6,250 5,790 5,684 5,200 Fire: (2) Number of emergency calls 2,755 2,615 2,592 2,612 2,595 Inspections 1,206 1,159 837 1,114 1,085 Public works: (3) Street resurfacing (miles) 5.0 18.6 16.8 19.6 18.5 Parks and recreation:(4) Number of recreation classes 1,022 1,102 1,376 1,558 1,569 Number of facility rentals 1,736 4,123 4,305 4,555 4,103 (a) Unavailable Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Dept 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. 106 (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. 107 Schedule 16 City of Diamond Bar Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year Ended June 30, Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Public safety (1) Police: Station 1 1 1 1 1 1 1 1 1 1 Patrol units (all shifts combined) 20 20 19 19 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) 128 128 128 128 128 128 129.4 129.4 129.4 129.4 Streetlights (a) (a) (a) 233 233 233 294 294 294 294 Traffic signals (a) (a) (a) 74 74 74 76 76 76 76 Culture and recreation:(4) Parks acreage (developed) 62.7 62.7 62.7 62.7 62.7 62.7 62.7 63.6 67.9 67.9 Parks acreage (undeveloped) 439.0 439.0 439.0 439.0 439.0 439.4 439.4 440.3 440.3 440.3 Parks 11 11 11 11 11 12 12 13 14 14 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) (a) (a) (a) 157 157 157 158.4 158.4 158.4 161.21 (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. 107 THIS PAGE INTENTIONALLY LEFT BLANK 108