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HomeMy WebLinkAboutCAFR - FY 2003-04r CITY OF DIAMOND BAR. CALIFORNIA Comprehensive Annual Financial Report Year ended June 30, 2004 Prepared by: FINANCE DEPARTMENT Linda G. Magnuson Director of Finance (This page intentionally left blank) CITY OF DIAMOND BAR Comprehensive Annual Financial Report Year ended June 30, 2004 TABLE OF CONTENTS Page INTRODUCTORY SECTION: Letter of Transmittal i CSMFO Certificate of Award Outstanding Financial Reporting vii GFOA Certificate of Achievement for Excellence in Financial Reporting viii Organization Chart ix List of Principal Officials x FINANCIAL SECTION: Independent Auditors' Report Management's Discussion and Analysis (Required Supplementary Information) 3 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Assets 13 Statement of Activities 14 Fund Financial Statements: Governmental Funds: Balance Sheet 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 17 Statement of Revenues, Expenditures and Changes in Fund Balances 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Proprietary Funds: Statement of Net Assets 20 Statement of Revenues, Expenses and Changes in Fund Net Assets 21 Statement of Cash Flows 22 Notes to the Basic Financial Statements Required Supplementary Information: 23 Notes to Required Supplementary Information 57 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual: General Fund 58 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) Page Supplementary Schedules: Non -Major Governmental Funds: Combining Balance Sheet 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 61 Non -Major Special Revenue Funds: Combining Balance Sheet 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 65 Schedules of Revenues, Expenditures acid Changes in Fund Balances — Budget and Actual: State Gas Tax 67 Proposition A Transit 68 Proposition C Transit 69 ISTEA 70 Traffic Congestion Relief 71 Integrated Waste Management 72 Air Quality Improvement 73 California Law Enforcement Equipment Program (CLEEP) 74 Park and Facility Development 75 Community Development Block Grant 76 Citizens Option for Public Safety (COPS) 77 Asset Seizure 78 Landscape Maintenance District 79 Non -Major Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Public Financing Authority Debt Service 81 Major and Non -Major Capital Projects Funds: Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Public Financing Authority Capital Project 83 Capital Improvement 84 Grand Avenue Construction Capital Project 85 CITY OF DIAMOND BAR Comprehensive Anrival Financial Report, (Continued) TABLE OF CONTENTS, (CONTINUED) LM. Internal Service Funds: Combining Statement of Net Assets 87 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 88 Combining Statement of Cash Flows 89 STATISTICAL, SECTION: Table Page Government -wide Expenses by Function 1 91 Govermnent-wide Revenues 2 92 General Government - Expenditures by Function 3 93 General Goverm-nent - Revenues by Source 4 94 Property Tax Levies and Collections 5 95 Assessed and Estimated Actual Value of Taxable Property 6 96 Property Tax Rates — Direct and Overlapping Debt 7 97 Computation of Legal Debt Margin 8 98 Computation of Direct and Overlapping Debt 9 99 Residential and Commerical Construction and Bank Deposits 10 100 Principal Taxpayers 11 101 Schedule of Insurance 12 102 Miscellaneous Statistics 13 103 Schedule of Credits 14 104 (This page intentionally left blank) Retention of Country Living Character & Preservation ofOpen Space Resources Maintaining a careful balance of housing, businesses and services, public facilities, and preservation ofsignificant natural environmental resources ° Landscaping Projects ° New Residential Street Signs " Diamond Bar Center (open March 20U4) " Trail Improvements atSycamore Canyon Park Provision of Wel-Maintained.Attractive Housing Housing which accommodates people oya0ages, cultures, occupations and levels o/ financial status ° Neighborhood Improvement Program ° Home Improvement Programs Creation mfNuturing Community Environment Acommunity which nutunssocial, cultural, religious, educational and recreational opportunities ° Diamond Bar Center (open March 2004 ' ° Sports Complex Task Force ° Youth Master Plan Pomotion of Viable Commercial Activity /he City plays aproactive role in business andeconomic development toprovide ufull range of desired retail goods and services and nofdesired[hysalestaxoevenue ° Economic Development " Revitalization cfCountry H|UsTowne Center • Possible development of Grand Avenue & Golden Springs Drive Property Reduction of Regional Traffic Impacts The City bcommitted toaproactive involvement in regional e0brt.5tosolve and/o/reduce circulation impacts onthe local community " Participation in RegionalTmnsportohon[ommittee» " Ca|TmnsS7/60Project ° Traffic Signal ization Plan I AM INTRODUCTORY SECTION (This page intentionally left blank) 21825 Copley Drive - Diamond Bar, CA 91765-4178 (909) 839-7000 - Fax (909) 861-3117 www.CityofDiamondRar.com November 29, 2004 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, 2004. This is the second year that the City's annual financial report has been reformatted to comply with the new financial reporting model developed by the Governmental Accounting Standards Board (GASB) Statement 34. The new financial reporting model changes the format of the City's financial statements. It is intended to improve financial reporting by including significant additional information not previously available in local government financial statements. This report consists of management's representations concerning the finances of the City. Consequently, responsibility for both the accuracy Bob Zirbes of the presented data and the completeness and fairness of the Mayor presentation, including all disclosures, rests with the City's management. Carol Herrera To provide a reasonable basis for making these representations, Mayor Pro Tem management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, Wen Chang theft, or misuse and to compile sufficient reliable information for the Council Member preparation of the City's financial statements in conformance with Bob Huff GAAP. Because the cost of internal controls should not outweigh their C01,111M Member benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that Deborah H. O'Connor the financial statements will be free from material misstatement. As COL/oCil Member 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 Conrad and Associates, L.L.P., a firm of certified public accountants. The goal of the independent audit was to provided reasonable assurance that the financial statements of the City for fiscal year ended June 30, 2004, are -i- Recycled paper 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 unqualified opinion that the City's financial statements for the fiscal year ended June 30, 2004, 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 statement, 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. 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 59,000, 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, a new 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 City Attorney. 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. During the last few years, the City of Diamond Bar's economy has seen a slight improvement. This fiscal year was no exception as illustrated by higher sales tax revenues and transient occupancy tax revenues. Now, with the shifts in State revenue and the anticipated loss of two major sales tax producers, the future is not as stable as it once was. The City has, however, built General Fund reserves to fill in any gaps created by the economy or the State. A careful analysis of the FY 04-05 budget will be done mid -year to adjust anticipated revenues as well as appropriations. Of major concern, are efforts by the State to reduce municipal revenue resources. These include motor vehicle license fees and gas tax revenues. This along with the taking of revenue that was to "backfill" shortages in property tax revenues Iost through Proposition 13, is of a major concern to most California cities. The City of Diamond Bar joined forces with other cities via various organizations to support and pass a State- wide ballot measure to protect local revenue sources. The City continues to market opportunities for business expansion and business attraction. Late in the fiscal year a major economic development opportunity presented its self. Lewis Development has proposed a residential and retail project called the Village at Diamond Bar which will be located at the intersection of Grand Avenue and Golden Springs Drive. This location was formally know as the Calvary Chapel/Citrus Valley site and is targeted as one of the prime retail locations in the City. It is anticipated that this project will make up for some of the erosion in the City's sales tax base. FY04-05, the City will continue to explore opportunities to expand its sales tax and property tax base with new development opportunities in its commercial areas. These include the Country Hills Town Center; Walnut Valley Trailer Park site; L.A. County Golf Course site; and the K -Mart Property. 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, 2003. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, with contents that conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last nine consecutive years (fiscal years ended 1995 through 2003 ). 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. The City of Diamond Bar has also been awarded the Certificate of Award for Outstanding Financial Reporting by the California Society of Municipal Finance Officers for its comprehensive annual financial report for the last seven consecutive years. 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, solid waste contract management and subsidized transit ticket sales), community services (which includes senior services, park maintenance, recreation services and landscape maintenance), community relations, grant administration, financial management, and administrative management. All of these activities are included in this report. -1v- Cash Management The City invests temporarily idle funds in accordance with the Government Code and the investment policy approved annually by the City Council. During FY03-04, most of the City funds were invested in the Local Agency Investment Fund (LA11F), which is administered by the State Treasurer's Office. In addition to LAIF, the City maintains Money Market Mutual Fund accounts that are in accordance with the City's investment policy. The City manages all of its cash and investments on a pooled basis. Interest earnings are allocated to the various funds based on their share of cash and investment balances. Risk Management The City of Diamond Bar is a member of the California Joint Powers Insurance Authority (CJPIA) for the purpose of pooling its general liability losses and claims with the other member agencies. The City retains the first $20,000 of each claim. Claims above $20,000 are shared by all the member agencies up to a maximum of $50,000,000 per occurrence. The City has also joined the CJPIA's Workers' Compensation Insurance Program. The administration of the workers' compensation program is similar to that of the authority's liability program. The City is charged for the first $50,000 of each claim. Costs from $50,001 to $100,000 per claim are pooled based on the member's losses under its retention lever. Costs between $100,001 & $500,000 are pooled based on payroll. Costs in excess of $500,000 are paid by excess insurance purchased by the CJPIA. The excess insurance provides coverage to statutory limits. Additionally, the City has all risk property insurance through the Authority. The City's property is currently insured according to a schedule of covered property submitted to the Authority by the City. Total all-risk property insurance overage is $100,000,000 per occurrence. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually. The City has also established a self-insurance internal service fund to cover the City's share of any potential losses not covered by the CJPIA. The City Council established a policy of annually transferring $100,000 to the fund to create a self-insurance reserve. Policy states that when the reserve reaches $1,000,000, the reserves are deemed to be sufficient. No transfer was necessary this fiscal year, since the reserves reached that milestone in fiscal year 1998-99. The self-insurance reserve at June 30, 2004 was $1,477,668. -v- Defined Benefit Pension Plan The City has contracted with the California Public Employees Retirement System (PERS) to provide retirement, disability, death and survivor benefits for all eligible full and part --time City employees. The pension benefit obligation varies from year to year and is computed as part of an actuarial valuation. For the three years ended June 30, 2002, 2003, and 2004 the total contribution to PERS was 11.05%, 11.66% and 12.70% respectively, of the annual covered payroll. The City's total contribution to the system was $288,999 for FY003-04. The total contribution paid by the City included employer contributions as well as member contributions for which the City is contractually obligated to pay on behalf of its employees. Acknowledgements The preparation of this Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the City's Finance Department staff, and through the cooperation of the entire City staff. Each staff member has my sincere appreciation for the contributions made in the preparation of this Report. I would also like to thank our independent auditor, Conrad & Associates L.L.P., for its expertise and advice in the preparation of the City's Comprehensive Annual Financial Report. In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this Report would not have been possible. Sincerely, `Linda C. Lowry City Manager -vi- - -mzma�e.� HI Vil r►` � M� i Certificate Achievement for Excellence in Financial Presented to California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. t �UNITEDOWF STATES W AND 6 fAAPOMTgN A President `� 81�L aos LYICAW / �/ Executive Director viii .9 2 0 U Q) MO C: c: ii Ea < C: < E Q) E o u o o 0 U -i CL --j --j U 0 V� E Q) cE < w (1) C: L -to :3 >- .0 0 0 u 0 7 Q) 2 Q) E Q) Lu r" u 0 u > E -0 E E LU m m 0 u to 0 < (LI E En o U U 0• 0 Q) OD 7i u C: 0) U < j cL -0 :3 M ro C: LZ It 13O Q) U > It 2 0 OA Q, U E � y LU u ro ,2 .o u Q) Uro Q) > CL a_ 22c Q) u E 0 OA 0 Q) 0 In C: rn 0 0) E Q) u 0) CL W Lu V) LU .9 2 0 U Q) MO C: c: ii Ea < C: < E Q) E o u o o 0 U -i CL --j --j U ix 0 V� ami 2 0 u > LU m m to E En o E Q) U > 0 OA Q, E .o u Q) Uro > 22c Q) u 0 0 c rn 0 0) E Q) CL V) LU E 0� 0 > Q) V) c—Q, E c ?Q) u Faa Q) > 0 =- V) E Q) 0 .10 u o E C -)u m E a) U Q) a " CL w C)�� > Q) M 0 V) U c a_ ce LnQ) V) m Q) E C: Q) :t" u 8. E c 0 C: 0 p E rz > N *�= > E 0 a.) CL Q = Lu U E (D -e u (D CO 2 u U 0 0 V) ro ix ELECTED AND ADMINISTRATIVE OFFICIALS Mayor Mayor Pro Tem Councilmember Councilmember Councilmember City Manager/City Clerk Deputy City Manager Deputy City Manager Director of: Community Services Finance Public Works 0 Robert Zirbes Carol Herrera Wen P. Chang Deborah H. O'Connor Robert Huff Linda C. Lowry James DeStefano David A. Doyle Bob Rose Linda G. Magnuson David G. Liu City of Diamond Bar The City of Diamond Bar is a general law city incorporated on April 18, 1989. It is governed by a city council/city manager form of government. City Manager's Office A City Manager is appointed by the Council to oversee the daily activities of the City. The City of Diamond Bar is organinzed into two main areas - the Administrative Services Department and the Community and Development Services Department - with several Divisions in each Department. City Clerk's Office The City Clerk's office has a statutory duty to record the official minutes of all City Council meetings; maintain original resolutions and ordinances, and is the custodian of the City seal. Additionally, the Clerk is the chief election officer for municipal elections and the depository for all official documents and records. FINANCIAL SECTION (This page intentionally left blank) ` • • CERTIFIED PUBLIC ACCOUNTANTS 2301 DUPONT DRIVE, SUITE 200 IRVINE, CALIFORNIA 92612 (949) 474-2020 Fax (949) 263-5520 Honorable Mayor and City Council City of Diamond Bar Diamond Bar, California Independent Auditors' Report We have audited the accompanying financial statements of the goveriunental activities, each major fund and the aggregate remaining fund information of the City of Diamond Bar, California, as of and for the year ended June 30, 2004, which collectively comprise the City's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the management of the City of Diamond Bar. 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 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 fiuzd and the aggregate remaining fund information of the City of Diamond Bar, California, as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, of the City of Diamond Bar, California for the year then ended in conformity with accounting principles generally accepted in the United States of America. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information is not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION Honorable Mayor and City Council City of Diamond Bar, California Page Two Our audit was conducted for the purpose of forming opinions on the financial statements that collective comprise the City of Diamond Bar's basic financial statements. The introductory section, combining and individual nolvmajor fund financial statements and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nomnajor fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements arid, accordingly, we express no opinion on them. In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2004 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. c'� L2m cl /10;5 0 -Ce a Ct�o` • L ' �` October 15, 2004 Public Safety The City of Diamond Bar's primary public safety services are provided by the County of Los Angeles. The City of Diamond Bar contracts with the Los Angeles County Fire Department for al I of its fire and emergency medical service needs. There are three fire stations that are strategically located within the City limits. For all law enforcement services, the City contracts with the Los Angeles County Sheriff's Department. Diamond Bar is served by the Walnut - Diamond Bar Sheriff Station with more than 20 full-time personnel assigned specifically to Diamond Bar. Both entities are trained to provide the highest level of public safety and emergency assistance. Other public safety services include animal control, pest control, emergency services, and risk management. al M I- 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, 2004. 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 During the fiscal year, the City's total net assets increased by $124,426 while the composition of the net assets changed from having 65% to 77% unrestricted net assets. This is due the completion of the Diamond Bar Center and the use of lease revenue bond proceeds that were reported in the prior fiscal year as restricted net assets. ® The total revenues from all sources equaled $18,306,947. ® The total cost of all City programs equaled $18,431,573. The total costs exceeded total revenues due to the costs associated with construction of the Diamond Bar Center and the use of resources for economic development purposes. The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by $40,307,154 (net assets). Of this amount, $31,231,827 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, unreserved fund balance for the general fund was $22,663,502, or one and three quarters the amount of general fund expenditures. 1*I- M_411011FINUIS. �M if �_11 � 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. E The statement of net assets presents information on all of the City of Diamond Bar's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in new assets 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 assets changed during the most recent fiscal year. All changes in net assets 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. 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. This information helps to determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. CI 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 assets may serve over time as a useful indicator of the City's financial position. The City of Diamond Bar's assets exceeded liabilities by $40,307,154 at the close of 2004. (see Table 1) Included in the net assets of the City of Diamond Bar is its investment in capital assets (e.g., land, buildings, machinery, construction in progress and equipment), 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. 5 Table 1 CITY OF DIAMOND BAR'S Statement of Net Assets Current and other assets Capital assets Total Assets Long-term debt outstanding Other Liabilities Total Liabilities Net assets: Invested in capital assets, net of debt Restricted Unrestricted Total Net Assets Governmental Activities 2004 2003 $35,763,758 $42,305,020 21,411,077 15,009,406 57,174,835 57,314,426 13,530,722 13,809,092 3,336,959 3,073,754. 16,867,681 16,882,846 8,833,560 8,237,553 241,767 5,988,178 31,231,827 26,205,849 $40,307,154 $40,431,580 Less than one percent of the City of Diamond Bar's net assets are resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($31,231,827) may be used to meet the City's ongoing obligations to citizens and creditors. The major change that occurred in the categorization of the Net Assets from the prior fiscal year is due the completion and capitalization of the new community/senior center (Diamond Bar Center). The Capital Assets category increased as a result, and the use of bond proceeds to complete construction resulted in the major decrease in Restricted Net Assets. There was a slight decrease in net assets of $124,426. Table 2 illustrates this change. The City's total revenues were $18.3 million, while the total cost of all programs and services were $18.4 million. Revenues this fiscal year were less than those of the prior year. There were both increases and decreases in several of the revenue categories. The following are highlights of some of the major differences: ® Sales tax, transient occupancy tax and franchise taxes were all higher this year due to a growing economy. ® The dramatic decrease in Capital Grants and Contributions is due to the receipt of funds during FY03 for the construction of the Diamond Bar Center. ® The reduction in Motor Vehicle in Lieu fees was due to the change in the allocation of funds from the State. Investment Income was lower due to a lower return on investments and lower cash balances. Table 2 City of Diamond Bar's Changes in Net Assets Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues Property taxes Transient occupancy taxes Sales Taxes Franchise Taxes Motor vehicle in lieu Property transfer tax Othertaxes Investment Income Other Total revenues Expenses: General Government Public Safety Highways and Streets Community Development Parks, Recreation and Culture Interest and Fiscal Charges Increase in net assets Net assets - 0701/03 Net assets - 06/30/04 7 2004 2003 $3,033,645 $2,872,909 4,068,446 4,390,722 261,994 1,779,510 2,682,872 2,692,723 628,564 578,680 3,167,901 2,965,292 912,531 828,242 2,716,134 3,370,387 367,464 367,638 35,077 34,989 182,069 439,455 250,250 84,795 18,306,947 20,405,342 3,713,530 3,315,082 4,875,823 4,988,449 1,365,737 1,006,768 5,724,606 3,370,116 2,580,454 2,309,150 171,223 535,752 18,431,373 15,525,317 (124,426) 4,880,025 40,431,580 35,551,555 $40,307,154 $40,431,580 The significant increase in the Community Development category is as a result of the construction of the Diamond Bar Center. The other increases in operating expenses are primarily as a result of increased services to the City. 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, unreserved fund balance may serve as a useful measure of a City's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Diamond Bar's governmental funds reported combined ending fund balances of $29,560,397, a decrease of $6,811,685 in comparison with the prior year. Of this amount, there is $128,350 reserved to liquidate contracts and purchase orders outstanding at the end of the year. The general fund is the chief operating fund of the City of Diamond Bar. At the end of the current fiscal year, unreserved fund balance of the general fund was $21,796,659, while the total fund balance reached $22,663,502. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 169.9% of total general fund expenditures, while total fund balance represents 176.6% of the same amount. During the current year, the fund balance of the City of Diamond Bar's general fund increased by $309,876. Since the City's incorporation, the City has been fiscally conservative. Other factors contributing to this growth are as follows: • An increase in transient occupancy tax as a result of improved travel business. 0 Sales tax as a result of a growing economy. The exchange of Proposition A — Transit Taxes for General Fund money. 4�z), X6_0 A There were more funds transferred to the General Fund from the Gas Tax Fund to reimburse for street maintenance expenses. W i k P" 7-1 TR' =7,11,11 Although the changes to the original revenue estimates were relatively insignificant, the differences between the original expenditure budget and the final expenditure budget were not. The budget amendments and supplemental appropriations were made during the year to prevent budget overruns and to increase appropriation for unanticipated expenditures after adoption of the original budget. Some of these expenditures did not materialize and as a result the actual expenditures actually remained lower than the original budget. "n -Won- a�i Capital assets - The City of Diamond Bar's investment in capital assets for its governmental activities as of June 30, 2004 amounts to $21,411,077 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, furniture and fixtures, vehicles and equipment and construction in progress. The total increase in the City's investment in capital assets was 42.7%. (Table 3) The City has not valued its infrastructure and therefore it has not been included at this time. The major capital asset event during the current fiscal year was the completion of the construction on the new Diamond Bar Center (community/senior center). This is by far the largest project constructed by the City. As a result, the construction in progress from the previous year was eliminated and the new building was capitalized at $14,062,338. The City upgraded its computers last fiscal year and as a result, the old equipment was disposed of. Increases in vehicles and equipment were primarily due to the furnishing of the new Diamond Bar Center. Table 3 City of Diamond Bar Capital Assets (net of depreciation) Land Buildings and Improvements Furniture and Fixtures Vehicles & Equipment Construction in Progress 2004 2003 $5,252,465 $5,252,465 15,762,883 2,144,916 3,887 24,213 391,842 314,739 7,273,073 $21,411,077 $15,009,406 Additional information on the City's capital assets can be found in note 4. Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt equaled $13,837,566. The following table shows the breakdown of the debt outstanding. Outstanding Long Term Debt at Year-end Variable Rate Lease Revenue Bonds (backed by the Public Financing Authority) 13,755,000 Unamoritzed Bond Discount (132,965) Compensated Absences (backed by the City) 215,531 $13,837,566 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 2004-05 budget is a fiscally conservative budget, this year, however, is the first year in which operating appropriations are slightly higher than estimated revenue in the General Fund. When the City issued bonds to assist with the funding of the Diamond Bar Center, it was a conscientious decision that some general fund balance reserves should be used for Hill economic development. As a result, the FY05 budget includes an increase in the economic development budget. It is anticipated that these efforts will be rewarded in the near future with the development of a new retail center and housing project. 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, 21825 Copley Drive, Diamond Bar, California 91765. 11 (This page intentionally left blank) Finance The Finance Division provides accounting control over revenues, receivables and rn8intliDS budgetary control over al ICity funds. The Finance Division processes all financial transactions [fthe City. Specific activities include accounts payable, cash receipts, payroll, fixed as5etg,budg8t DOGiDt8D8nce/audits, financial reporting, and the refinements and maintenance ofthe general accounting system. � Human Resources |nconjunction with the payroll function, the Finance Division also serves asthe Human Resources Division. This includes ' employee recruitment, benefit administration, personnel review and salary $ASIC FINANCIAL STATEMENTS 12 (This page intentionally left blank) CITY OF DIAMOND BAR. Statement of Net Assets June 30, 2004 Governmental Total assets 57,174,835 Liabilities: Accounts payable Activities Assets: 262,221 Cash and investments (note 2) $ 32,034,456 Cash and investments with fiscal agent (note 2) 653,680 Accounts receivable, net 452,055 Interest receivable 111,215 Due from other goverm-nents 1,813,075 Notes receivable 88,585 Unamortized issuance costs 610,692 Capital assets, not depreciated (note 4) 5,252,465 Capital assets, depreciated (note 4) 16,158,612 Total assets 57,174,835 Liabilities: Accounts payable 1,608,975 Accrued payroll 262,221 Deposits 1,019,488 Retentions payable 50,846 Advance to other governnients 88,585 Long-term liabilities (note 5): Due within one year 306,844 Due in more than one year 13,530,722 Total liabilities 16,867,681 Net assets: Invested in capital assets, net of related debt 8,833,560 Restricted for: Capital projects 241,767 Unrestricted 31,231,827 Total net assets $ 40,307,154 See accompanying notes to the basic financial statements. 13 CITY OF DIAMOND BAR Statement of Activities Year ended June 30, 2004 Program Revenues Operating Capital Net Charges for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities Governmental activities: General government $ 3,713,530 225,656 20,685 - (3,467,189) Public safety 4,875,823 733,902 133,241 - (4,008,680) Highways and streets 1,365,737 529,330 2,714,122 - 1,877,715 Community development 5,724,606 933,985 1,102,007 261,994 (3,426,620) Parks, recreation and culture 2,580,454 610,772 - - (1,969,682) Interest and fiscal charges 171,223 - 98,391 - (72,832) Total governmental activities $ 18,431,373 3,033,645 4,068,446 261,994 (11,067,288) General revenues: Taxes: Property taxes 2,682,872 Transient occupancy taxes 628,564 Sales taxes 3,167,901 Franchise taxes 912,531 Motor vehicle in lieu 2,716,134 Property transfer tax 367,464 Other taxes 35,077 Investment income 182,069 Other 250,250 Total general revenues 10,942,862 Change in net assets (124,426) Net assets at beginning of year 40,431,580 'Net assets at end of year $ 40,307,154 See accompanying notes to the basic financial statements. 14 Informatior System The Informatior Systems Divisior provides ongoing technical anc software suppor to all the departments o the City --ie Division is also !sponsible for enhancing A managing the City's formation technology --tivities including the valuation, procurement, A maintenance of )mputer/network systems A software; as well as -)sisting in the nplementation of the e- Dvernment plan. GENERAL FUND 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 PROJECTS FUNDS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities. The following Capital Projects Funds have been classified as major funds in the accompanying financial statements: Capital Iimprovement Fund — This fund is used to account for the costs of constructing street improvements, park improvements, and other public improvements. Public Financing Authority Fund — This fund is used to account for the financing of the construction of a conmmunity/senior center project. 15 Assets: Cash and investments (note 2) Cash and investments with fiscal agent (note 2) Accounts receivable, net Interest receivable Due from other funds (note 3) Due from other governments Notes receivable Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued payroll Deposits Due to other funds (note 3) Deferred revenue Retentions payable Advance to other governments Total liabilities Fund balances (deficit): Reserved for: Encumbrances Improvements Bond retirement 'Notes receivable Unreserved: Reported in: General fund Special revenue funds Debt service fund Capital projects funds Total fund balances (deficit) Total liabilities and fund balances CITY OF DIAMOND BAR Governmental Funds Balance Sheet June 30, 2004 (With Comparative Data for Prior Year) Capital Projects Funds Public Non -Major General Capital Financing Governmental Fund Improvement Authority Funds Totals 2004 2003 $ 23,406,416 - - 6,952,588 30,359,004 30,769,268 - 147,765 505,915 653,680 6,983,147 247,981 - - 44,598 292,579 253,577 110,273 - 942 - 111,215 134,000 339,957 627,415 - - 967,372 1,410,154 960,224 33,519 - 819,332 1,813,075 1,929,753 - - - 88,585 88,585 - $ 25,064,851 660,934 148,707 8,411,018 34,285,510 41,479,899 $ 1,122,277 273,419 - 245,854 - - 1,019,488 - - - 321,671 - 13,73033,518 - - 50,846 - 2,401,349 679,454 - 212,614 1,608,310 1,808,012 16,367 262,221 189,306 - 1,019,488 996,480 642,305 963,976 1,410,154 684,439731,687 623,909 - 50,846 79,956 88,585 88,585 - 1,644,310 4,725,113 5,107,817 111,074 - - 17,276 128,350 748,744 250,250 - - - 250,250 - 505,519 - - - 505,519 - - - - 88,585 88,585 21,796,659 - - - 21,796,659 21,913,219 - - - 6,043,352 6,043,352 7,264,535 505,915 505,915 614,143 (18,520) 148,707 111,580 241,767 5,831,441 22,663,502 (18,520) 148,707 6,766,708 29,560,397 36,372,082 $ 25,064,851 660,934 148,707 8,411,018 34,285,510 41,479,899 See accompanying notes to the basic financial statements. 16 CITY OF DIAMOND BAR Govermnental Funds Reconciliation to the Balance Sheet of Gover iiiental Funds to the Statement of Net Assets June 30, 2004 Fund balances of governmental fields $ 29,560,397 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in goveriunental field activity. 21,379,548 Long -tern debt and compensated absences from the General Long Term Debt Account Group that have not been included in the governmental fund activity: Revenue bonds payable (13,755,000) Compensated absences (215,531) Unamortized issuance costs 610,692 Unamortized discount and deferred charges 132,965 Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. 731,687 Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net assets. 1,862396 Net assets of governmental activities $ 40,307,154 See accompanying notes to the basic financial statements. 17 CITY OF DIAMOND BAR Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2004 (With Comparative Data for Prior Year) See accompanying notes to the basic financial statements 18 Capital Projects Funds Public Non -Major General Capital Financing Governmental Totals Fund Improvement Authority Funds 2004 2003 Revenues: Taxes $ 7,759,331 - - - 7,759,331 7,432,575 Special assessments - - - 555,232 555,232 557,601 Intergovernmental 3,001,461 201,184 - 3,150,507 6,353,152 8,602,856 Charges for services - - - 709,011 709,011 706,137 Fines and forfeitures 733,903 - - - 733,903 813,617 Licenses, permits and fees 1,457,345 - - - 1,457,345 1,467,127 Investment income 182,068 - 93,186 120,675 395,929 658,922 Other 225,656 9,295 - - 234,951 74,818 Total revenues 13,359,764 210,479 93,186 4,535,425 18,198,854 20,313,653 Expenditures: Current: General government 3,661,541 - 25 1,489 3,663,055 3,163,516 Public safety 4,821,298 - - 35,881 4,857,179 4,973,248 Highway and streets - - - 1,365,737 1,365,737 1,006,768 Parks, recreation and culture 2,114,090 - - - 2,114,090 1,946,025 Community development 2,235,765 - - 1,184,091 3,419,856 2,808,613 Capital outlay - 9,261,289 - - 9,261,289 8,057,482 Debt service: Interest charges - - - 145,580 145,580 86,562 Fiscal charges and issuance costs - - - - - 1,080,940 Total expenditures 12,832,694 9,261,289 25 2,732,778 24,826,786 23,123,154 Excess (deficiency) of revenues over (under) expenditures 527,070 (9,050,810) 93,161 _^ 1,802,647 (6,627,932) _ (2,809,501) Other financing sources (uses): Bonds issued - - - - - 13,755,000 Bonds discount - - - - - (137,550) Transfers in (note 3) 1,109,362 8,763,973 - 33,635 9,906,970 10,259,848 Transfers out (note 3) (1,326,556) - (5,664,315) (3,099,852) (10,090,723) (10,453,243) Total other financing sources (u (217,194) 8,763,973 (5,664,315) (3,066,217) _ (183,753) 13,424,055 Net change in fund balances 309,876 (286,837) (5,571,154) (1,263,570) (6,811,685) 10,614,554 Fund balances at beginning of year, as restated (note 13) 22,353,626 268,317 5,719,861 8,030,278 36,372,082 25,757,528 Fund balances (deficit) at end ofyear $ 22,663,502 (18,520) 148,707 6,766,708 29,560,397 36,372,082 See accompanying notes to the basic financial statements 18 CITY OF DIAMOND BAR. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Goveriu-nental Funds to the Statement of Activities Year ended Julie 30, 2004 Changes in fund balances of goverril-nental funds Amounts reported for goveriu-nental activities in the statement of activities are different because: $ (6,811,685) Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period. 6,423,134 Bond issuance costs, discounts and deferred charges are recorded as an expenditure in the governmental funds while full accrual requires the amortization of these costs over the life of the debt. Compensated absences expense reported in the statement of activities does not require the use of current financial resources and therefore is not reported as expenditure in governmental funds. Revenues that are measurable but not available. Amounts are recorded as deferred revenue under the modified accrual basis of accounting. Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. Changes in net assets of governmental activities. See accompanying notes to the basic financial statements. 19 (25,643) (23,889) 107,778 205,879 (124,426) CITY OF DIAMOND BAR Proprietary Funds Statement of Net Assets June 30, 2004 (With Comparative Data for Prior Year) Internal Service Funds Assets: 2004 2003 Current assets: Cash and investments (note 2) $ 1,675,452 1,511,807 Accounts receivable 159,476 91,718 Total current assets 1,834,928 1,603,525 Property, plant and equipment: Machinery and equipment 98,323 98,323 Less accumulated depreciation (66,794) (45,331) Net property, plant and equipment 31,529 52,992 Total assets 1,866,457 1,656,517 Liabilities: Current liabilities: Accounts payable 665 - Due to other funds (note 3) 3,396 - Total current liabilities 4,061 - Net assets: Invested in capital assets 31,529 52,992 Unrestricted 1,830,867 1,603,525 Total net assets $ 1,862,396 1,656,517 See accompanying notes to the basic financial statements. 20 CITY OF DIAMOND BAR Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets Year ended June 30, 2004 (With Comparative Data for Prior Year) Internal Service Funds 2004 20031 Operating revenues: Insurance deposits $ 213,087 91,718 Total operating revenues 213,087 91,718 Operating expenses: Insurance premiums 183,752 162,064 Depreciation 21,463 19,032 Maintenance 6,430 4,644 Total operating expenses 211,645 185,740 Operating income (loss) 1,442 (94,022) Non-operating revenues: Investment income 20,684 27,650 Total non. -operating revenues 20,684 27,650 Income (loss) before transfers 22,126 (66,372) Transfers in (note 3) 183,753 193,395 Change in net assets 205,879 127,023 Total net assets at beginning of year 1,656,517 1,529,494 Total net assets at end of year $ 1,862,396 1,656,517 See accompanying notes to the basic financial statements. 21 CITY OF DIAMOND BAR Proprietary Funds Statement of Cash Flows Year ended June 30, 2004 (With Comparative Data for Prior Year) Supplemental information: During the year ended June 30, 2004, there were no rioncash investing, capital or financing activities. See accompanying notes to the basic financial statements. 22 Internal Service Funds 2004 2003 Cash flows from operating activities: Insurance deposits $ 145,329 72,838 Insurance payments (183,752) (5,815) Cash paid for operating expenses (2,369) _ (4,644) Net cash provided by (used for) operating activities (40,792) _ 62,379 Cash flows from rroncapital financing activities: Cash transferred from other funds 183,753 193,395 Net cash provided by noncapital financing activities 183,753 193,395 Cash flows from capital and related activities: Purchase of capital assets _ (24,330) Net cash provided by (used for) capital and related activities - (242330) Cash flows from investing activities: Interest received from investments 20,684 27,650 Net cash provided by investing activities 20,684 27,650 Net increase in cash and cash equivalents 163,645 259,094 Cash and cash equivalents at beginning of year 1,511,807 1,252,713 Cash and cash equivalents at end of year $ 1,675,452 1,511,807 Reconciliation of net operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) $ 1,442 (94,022) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 21,463 19,032 (Increase) decrease in accounts receivable (67,758) (18,880) (Increase) decrease in prepaid insurance - 156,249 Increase (decrease)in accounts payable 665 - Increase (decrease) in due to other funds 3,396 - Net cash provided by (used for) operating activities $ (40,792) 62,379 Supplemental information: During the year ended June 30, 2004, there were no rioncash investing, capital or financing activities. See accompanying notes to the basic financial statements. 22 Community Services The Community Services Division's programs; activities, and events help to strengthen the community's fabric, health and w ' ell -being, economic base, and security. Some of the Division's major programs/projects include: * Diamond Bar- Center * Parks & Facilities * Recreation Activities * Senior Services Information ® Maintenance Programs * Parks & Recreation Commission r CITY OF DIAMOND BAR Notes to the Basic Financial Statements Year ended June 30, 2004 (1) Surmnary of Significant Accounting Policies The City of Diamond Bar (City) was incorporated April 18, 1989 under the general laws of the state of California and enjoys all the rights and privileges pertaining to such "General Law" cities. The City is a municipal corporation governed by an elected five - member council. The accounting policies of the City conform to generally accepted accounting principles. The following is a summary of the more significant policies. (a) Reporting Entity As required by generally accepted accounting principles, these financial statements present the City of Diamond Bar and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete. A brief description of each component unit follows: The Diamond Bar Community Redevelopment Agency (Agency) was established February 6, 1996, pursuant to the State of California Health and Safety Code Section 33000 entitled, "Community Redevelopment Law." Although it is a legally separate entity from the City, the Agency is reported as if it were part of the City because of its purpose to prepare and execute plans for the improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City. According to the California Supreme Court's decision on August 9, 2000, the Agency's Redevelopment Plan was invalid. No activities were made during the year ended June 30, 2004. Accordingly, no financial statements of the Agency were issued. The Diamond Bar Public Financing Authority was formed on November 19, 2002. The purpose of the Diamond Bar Public Financing Authority is to issue debt to finance public improvements and other capital purchases for the City and the Community Redevelopment Agency. 23 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (a) Reporting Entity, (Continued) Since the City Council serves as the governing board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are reported with the interfund data of the primary government. (b) Measurement Focus and Basis of Accounting The basic financial statements of the City are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Financial reporting is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncements. FASB pronouncements issued after November 30, 1989 are not followed in preparation of the accompanying financial statements. Govermnent-wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business -type activities of the primary government (including its blended component units), as well as its discretely presented component units. The City of Diamond Bar has no business - type activities or discretely presented component units. Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City. 24 CITY OF DIAMOND BAR. Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Measurement Focus and Basis of Accounting, (Continued) Government -wide financial statements are presented using the economic resources measurement focus and accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government -wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and excharige-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33. Program revenues include charges for services and payments made by parties outside the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets in the government - wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. Fund Financial Statements The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Govermnental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government's governmental and proprietary funds are presented after the governinent-wide financial statements. These statements display information about major funds individually and non - major funds in the aggregate for govermnental funds. The City does not have fiduciary fiands. 25 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Measurement Focus and Basis of Accounting, (Continued) Governmental Funds In the fund financial statements, govermnental funds are presented using the modified -accrual basis of accounting. Their revenues are recognized when they become measurable and available as net: current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of sixty days. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government -mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. 26 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Measurement Focus and Basis of Accounting, (Continued) Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as govemmnental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long -team debt are recorded as an other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. 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. Proprietary Funds The City's internal service funds are proprietary fiu7ds. In the field financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary fields are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. 27 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Measurement Focus and Basis of Accounting, (Continu 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 customers for sales and services. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as noncapital revenues and expenses. Amounts paid to acquire capital assets are capitalized as assets in the internal service fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the internal service fund financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the internal service fund are reported as a reduction of the related liability, rather than as an expenditure. (c) Major Governmental Funds and Internal Service Fund 'Types The City's major governmental funds are as follows: General Fund — The primary fiord of the City is used to account for all revenue and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fiord including City Manager, City Attorney, Finance, City Clerk, Public Works, Building and Safety and Parks and Recreation. Capital Improvement Fund — To account for the costs of constructing street improvements, park improvements, and other public improvements not normally included within the other Capital Projects funds. Financing is provided by developer fees and interfund transfers from the Special Revenue Funds and the General Fund. Public Financing Authority Capital Project Fund — To account for the financing of public improvements and other capital purchases for the City. 28 ,�IInrtoIlk Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (c) Major Govermiiental Funds and Internal Service Fund Types, (Continued) Other fund types of the City are as follows: Internal Service Funds: Self -Insurance Fund — To account for payments made for the City's general liability insurance premium. Equipment Replacement Fund — To account for the replacement of the City's rolling equipment stock or vehicles. Computer Replacement Fund — To account for the replacement and/or enhancements of the City's computer-related equipment. (d) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets The "total find balances" of the City's governmental funds $29,560,397 differs from "net assets" of governmental activities $40,307,154 reported in the statement of net assets. This difference primarily results from the long-term economic focus of the statement of net assets versus the spending measurement focus of the governmental balance sheets. Capital Related Items When capital assets that are to be used in governmental activities are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds. However, the statement of net assets includes those capital assets among the assets of the City as a whole. Cost of capital assets $24,798,657 Accw-nulated depreciation (3,419,109) Total capital assets, net $21,379,548 29 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (d) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets, (Continued) Long -Term Liabilities Transactions Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the statement of net assets. Bonds payable $13,755,000 Compensated absences payable 215,531 $13,970,531 Deferred Revenue Because the focus of governmental funds is on short term financing, some assets will not be available to pay for current period expenditures. Those assets are offset by deferred revenue in governmental funds, and thus are not included in fund balances. Deferred revenue eliminated Internal Service Fund $731,687 Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Net assets added Bond Costs $1,862,396 Costs of issuance, discounts and deferred charges of new debt are expensed in the governmental funds. Under full accrual, these costs must be deferred and amortized over the life of the debt. Issuance costs Discount 30 $610,692 132,965 $743,657 Notes to the Basic Financial Statements (Continued) (1) Sum nary of Significant Accounting Policies, (Continued) (d) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets, (Continued) Reclassifications and Eliminations Interfund balances must generally be eliminated in the governinental statements, except for residual amounts due between governmental activities. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that the expenses are reported only once in the function in which they are allocated. 31 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) 11 Summary of Significant Accounting Policies, (Continued) (d) Explanation of Differences between Governmental Funds Balance Sheet and the Statement of Net Assets, (Continued) Total Capital Long -teen Governmental Related Debt Funds Items Transactions Assets: Cash and investments Cash and investments with fiscal agent Accounts receivable, net Interest receivable Due from other funds Due from other governments Notes receivable Unamortized issuance costs Capital assets, net Total assets Liabilities: Accounts payable Accrued payroll Deposits Due to other funds Deferred revenue Retentions payable Advance to other governments Compensated absences payable Bonds payable, net of discount Total liabilities Fund balances/net assets Total liabilities and fund balances/net assets $ 30,359,004 - - 653,680 - - 292,579 - - 111,215 - - 967,372 - - 1,813,075 - - 88,585 - - - - 610,692 - 21,379,548 - $ 34,285,510 21,379,548 610,692 $ 1,608,310 - - 262,221 - - 1,019,488 - - 963,976 - - 731,687 - - 50,846 - - 88,585 - - - - 13,622,035 4,725,113 - 13,622,035 �n ctin 207 71 '270 CA !12 fill QAQZ $ 34,285,510 21,379,548 610,692 32 Compensated Certain Internal Reclassifications Govermuent-wide Absences Deferred Service and Financial Payable Revenue Funds Eliminations Statements 1,675,452 - 32,034,456 _ - - 653,680 159,476 - 452,055 - - 111,215 (967,372) - - 1,813,075 - 88,585 - - 610,692 - - 31,529 - 21,411,077 1,866,457 (967,372) 57,174,835 665 - 3,396 (967,372) - (731,687) - - 215,531 - - - 215,531 (731,687) 4,061 (967,372) (215,531) 731,687 1,862,396 - 1,866,457 (967,372) 33 1,608,975 262,221 1,019,488 5 0, 846 88,585 215,531 13,622,035 16,867,681 40,307,154 57,174,835 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (e) Explanation of Difference and the Statement of Activil Funds Operating S The "net changes in fund balances" for governmental funds of $(6,811,685) differs from the "changes in net assets" for the governmental activities of $(124,426) reported in the statement of activities. The differences arise primarily from the long term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effects of the differences is illustrated below. Capital Related Items When capital assets (land, buildings, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds. However, in the statement of activities, the cost of those assets is allocated over their useful lives and reported as depreciation expense. As a result, fund balance increases by the amount of financial resources expended, whereas net assets decrease by the amounts of depreciation expense charged for the year. Capital outlay Depreciation expense $6,967,306 (523,803) $6,443,503 The change in net assets differs from the change in fund balance by the net loss ori disposition of capital assets. $20,369 Long-term Debt Transactions Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Net change in compensated absences $23,889 Bond issuance costs and deferred charges are reported as an expenditure in governmental funds and, thus, has the effect of reducing the fund balance because current financial resources have been used. Bond issuance costs and deferred charges $25,643 34 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (e) Explanation of Difference between Govermnental Funds Operating Statements and the Statement of Activities, (Continued) Deferred Revenue Because the focus of governmental funds is on short terns financing, some assets will not be available to pay for current period expenditures. Those assets are offset by deferred revenue in governmental funds, and thus are not included as revenues. $107,778 Internal Service Fund Internal service fimds are used by management to charge the costs of certain activities, such as equipment management, to individual funds. The adjustments for internal service funds "closes" those funds by charging additional amounts to participating governmental activities to completely cover the internal service fund's cost for the year. $205,879 Reclassifications and Eliminations Interfund balances must generally be eliminated in the governmental statements, except for residual amounts due between governmental activities. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once — in the function in which they are allocated. W CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (11 Sunimary of Significant AccountingPolicies, (Continued) (e) Explanation of Differences between Governmental Funds Operating Statements and the Statement of Net Assets, (Continued) Revenues: Taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Licenses, permits and fees Investment income Other Total revenues Expenditures: Current: General government Public safety Highways and Streets Community development Parks, recreation and cutlure Capital outlay Debt service: Interest charges Fiscal charges Total expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances/net assets Fund balances/net assets at beginning of year, as restated Fund balances/net assets at end of year 36 Total Capital Long-term Governmental Related Debt _P11"Ac )tame Traneartinnc $ 7,759,331 - - 555,232 - - 6,353,152 - - 709,011 - - 733,903 - - 1,457,345 - 395,929 - - 234,951 (20,369) 1 Q 1 UR RSd (N) I(NQ) - 3,663,055 44,994 - 4,857,179 18,644 - 1,365,737 - - 3,419,856 6,699 - 2,114,090 453,466 - 9,261,289 (6,967,306) - 145,580 - - 25,643 E 24,826,786 (6,443,503) 25,643 9,906,970 - - (10,090,723) - - (183,753) - - (6,811,685) 6,423,134 (25,643) 36,372,082 14,956,414 (12,985,700) $ 29,560,397 21,379,548 (13,011,343) Compensated Certain Internal Reclassifications Government -wide Absences Deferred Service and Financial Payable Revenue Funds Eliminations Statements 107,778 - - - 20,684 107,778 20,684 - 7,759,331 - 555,232 - 6,460,930 - 709,011 - 733,903 - 1,457,345 - 416,613 - 214,582 6,923 - (1,442) - 4,068 - - - 12,898 - - - 23,889 - (1,442) 183,753 - 183,753 (23,889) 107,778 205,879 (191,642) 623,909 1,656,517 (215,531) 731,687 1,862,396 (10,090,723) 10,090,723 37 18,306,947 3,713,530 4,875,823 1,365,737 3,430,623 2,580,454 2,293,983 145,.580 25,643 18,431,373 (124,426) 40,431,580 40,307,154 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Sununary of Significant Accounting Policies, (Continued) (f) Investments For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair market value and the carrying amount is material. 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. (g) Cash Equivalents For purposes of the statement of cash flows, 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 that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of Diamond Bar. Cash equivalents have an original maturity date of three months or less from the date of purchase. For purposes of the statement of cash flows, the entire balance of cash and investments on the combined balance sheet for the internal service fund is considered cash and cash equivalents. (h) Capital Assets Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of the contribution. Generally, capital asset purchases in excess of $1,500 are capitalized if they have an expected useful life of three years or more. The straight-line method is used for depreciation. 38 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (h) Capital Assets, (Continued) Capital assets include additions to public domain (infrastructure) general fixed assets consisting of certain improvements including roads, streets, sidewalks, medians and storm drains. Public domain assets acquired prior to July 1, 2002 have not been included in the accompanying financial statements. The City expects to value and record all infrastructure asset data in its entirety by fiscal year ended June 30, 2007. The following schedule summarizes fixed asset useful lives: Buildings and improvements 10-20 years Equipment and furniture 3-5 years Vehicles 5 years Infrastructure 10-50 years (i) Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of foi7nal budgetary control in the governmental funds. Encumbrances outstanding at year- end do not constitute expenditures or liabilities, but are reported as reservations of fund balance. 0) Compensated Absences Vacation and sick leave time begin to accumulate as of the first day of employment to a maximum of 160 hours. Employees who accumulate sick leave in excess of 160 hours are paid for the excess annually at one half the employee's current wage rate. In accordance with GASB Statement No. 16, 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. 39 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accourrting Policies, (Continued) 0) Compensated Absences, (Continued) Under GASB Statement No. 16 a liability is recorded for unused sick leave balances only to the extent that it is 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 payment, 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 tenninates with a minimum of one year of service, the employee is entitled to receive 10% of the value of his unused sick leave. The percentage increases to 50% for two to three years of service and 100% of the value of his unused sick leave upon the completion of more than three years of continuous employment. (k) Property Taxes (1) (m) 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 of Diamond Bar accrues only those taxes which are received from the county within 60 days after year-end: Lien date Levy date Due dates Delinquent dates Use of Estimates March 1 July 1 November 1 and February 1 December 11 and April 11 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 expenses during the reporting year. Actual results could differ from those estimates. Prior Year Data The information included in the accompanying financial statements for the prior year has been presented for comparison purposes only and does not represent a complete presentation in accordance with generally accepted accounting principles. 40 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (2) Cash and Investments Cash and investments are reported as follows: Statement of Net Assets: Cash and investments Cash and investments with fiscal agent Cash and investments consist of the following at June 30, 2004: Cash and investments: Imprest cash on hand Demand deposits Money market mutual funds Local Agency Investment Fund Mutual funds Total $32,034,456 653,680 $32,688,136 $ 600 777,332 166,281 31,596,803 147,120 $32,688,136 The City is generally authorized under Section 53601 of the California Government Code and the City's investment policy to invest in demand deposits with financial institutions; passbook. savings accounts; certificates of deposit; negotiable certificates of deposits; barker's acceptances; U.S. Treasury issues; Federal agency securities; commercial paper; repurchase agreements (repos); Local Agency Investment Fund (LAIF) of the State of California; medium term corporate notes; and money market fiuzds. Deposits Under the California Government Code, a financial institution is required to secure deposits made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. 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. 41 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Deposits of cities and other state or local governments are classified in three categories to give an indication of the level of custodial risk assumed by the entity. Category 1 includes deposits that are insured or collateralized with securities held by the City or its agent in the City's name. Category 2 includes deposits collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent. of Depository and subject to certain regulatory requirements under State law. Category 3 includes deposits collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the City's name. Category 3 also includes any uncollateralized deposits. Deposits are categorized as follows: Form of Deposit Deposits held by City: Demand deposits Deposits held by fiscal agent: Demand deposits Total deposits Investments Category 1 _ 2 3 $100,000 114,254 100,000 406,560 $200,000 520,814 - Bank Book Balance Balance 214,254 270,772 506,560 506,560 720,814 777,332 Investments of cities and other state or local governments are classified in three categories to give an indication of the level of custodial risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or the City's custodial agent (which must be a different institution other than the party through which the City purchased the securities) in the City's name. Investments held "in the City's name" include securities held in a separate custodial or fiduciary account and identified as owned by the City in the custodian's internal accounting records. Category 2 includes uninsured and unregistered investments for which the securities are held by the dealer's agent in the City's name (or by the trust department of the dealer if the dealer was a financial institution and another department of the institution purchased the securities for the City). Category 3 includes uninsured and unregistered investments for which the securities are held by the dealer's agent but not in the City's name. Category 3 also includes all securities held by the broker-dealer agent of the City (the party that purchased the securities for the City) regardless of whether or not the securities are being held in the City's name: 42 Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Category _ Form of Investment 1 2 3 Investments held by City not subject to categorization: Investment in State Investment Pool - LAIF Money market mutual funds Investments held by fiscal agents not subject to categorization: Mutual funds Total investments Carrying Amount $31,596,803 166,281 147,120 $31,910,204 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. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, govermnent-sponsored enterprises, and corporations. (3) Interfdid Receivables, Payables and Transfers Current interfund receivables and payables balances at June 30, 2004 were as follows: Due from other funds General Fund Due to other fluids Non -Major Governmental Funds $ 14,890 (A) Capital Improvement Fund 321,671 (A) Internal Service Funds 3,396 (A) Capital Improvement Fund Non -Major Governmental Funds (A) Short-term borrowing to cover temporary cash shortfalls. (B) Short-term borrowing to cover construction project expenditures. 43 627,415 (B) 967 372 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (3) Interfund Receivables, Payable and Transfers, (Continued) ended June 30 2004 were as follows: Transfers m and out for the year en , Transfers In Transfers Out Amount General Fund Non -Major Governmental Funds $ 1,109,362 (C) 1 Capital Improvement Fund General Fund 1,142,803 (A) Public Financing Authority Capital Project Fund 5,630,680 (B) } Non -Major Governmental Funds 1,990,490 (C) Non -Major Governmental Funds Public Financing Authority Capital Project Fund 33,635 Internal Service Funds General Fund 183,753 $10,090,723 (A) To provide capital projects funds with the funding necessary to accomplish those projects approved by the City Council. (B) To transfer the bond proceeds for the Community/Senior Center project. (C) To transfer the fundings for reimbursement of various capital projects. 44 CITY OF DIAMOND BAR. Notes to the Basic Financial Statements (Continued) Capital Assets Capital asset activity for govermnental activities for the year ended June 30, 2004 was as follows: Capital assets being depreciated: Building and improvements Furniture and fixtures Vehicles and equipment Total cost of depreciable assets Less accumulated depreciation for: Buildings and improvements Furniture and fixtures Vehicles and equipment Total accumulated depreciation Net depreciable assets Capital assets not depreciated: Land Construction in progress Total capital assets, not depreciated Capital assets, net Balance at Balance at June 30, 2003 Additions Deletions June 30, 2004 $ 4,430,820 14,062,338 - 18,493,158 62,963 - - 62,963 1,112,651 178,041 202,298 1,088,394 5,606,434 14,240,379 202,298 19,644,515 2,285,904 444,371 - 2,730,275 38,750 20,326 - 59,076 797,912 80,569 181,929 696,552 3,122,566 545,266 181,929 3,485,903 2,483,868 13,695,113 20,369 16,158,612 5,252,465 _ - 7,273,073 - 7,273,073 12,525,538 7,273,073 15,009,406 13,695,113 7-293J42 45 5,252,465 5,252,465 21,411,077 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (4) Capital Assets, (Continued) Depreciation expense was charged in the following functions in the Statement of Activities: General governinent $ 66,457 Public safety 18,644 Community development 6,699 Parks, recreation and culture 453,466 Total J545 266 (5) Long-term Liabilities Changes in long-term liabilities during the year ended June 30, 2004 were as follows: Governmental activities: Amount Due Amount Due Balance at Balance at Within One Beyond One July 1, 2003 Additions Retirements June 30, 2004 Year Year Bonds payable: Revenue bonds $13,755,000 - - 13,755,000 235,000 13,520,000 Unamortized discount (137,550) 4,585 - (132,965) - (132,965) Compensated absences 191,642 230,828 206,939 215,531 71,844 143,687 $13,802,092 235 413 206,939 13 837566 306,844 13.530.722 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 City purchased a 10 year 4.5% interest rate cap. After ten years, the interest rate will be set at the market rate. As of June 30, 2004, $13,755,000 of the bonds are outstanding. 46 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (5) Long-term Liabilities, (Continued) Debt Service Requirements to Maturity The following schedule surninarizes the debt service to maturity requirements for governmental activities bonds outstanding as of June 30, 2004: Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $215,531 at June 30, 2004 is expected to be paid in future years from future resources, typically liquidated from the General Fund. (6) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. 47 2002 Series A Variable Rate Lease Year ending Revenue Bonds June 30 Principal Interest 2005 $ 235,000 10,575 2006 240,000 10,800 2007 255,000 11,475 2008 265,000 11,925 2009 280,000 12,600 2010-2014 1,600,000 72,000 2015-2019 2,010,000 90,450 2020-2024 2,535,000 114,575 2025-2029 3,195,000 143,775 2030-2033 3,140,000 141,300 $13,755,000 618,975 Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $215,531 at June 30, 2004 is expected to be paid in future years from future resources, typically liquidated from the General Fund. (6) Postemployment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. 47 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (7) Liability, Property and Workers' Compensation Protection The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 91 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 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 coverages. The Authority's pool 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 9 -member Executive Committee. (a) Self -Insurance Programs of the Authority General Liability The City pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the City; costs from $30,001 to $750,000 are pooled based on a member's share of costs under $30,000; costs from $750,001 to $5,000,000 are pooled based on payroll. Costs of covered claims above $5,000,000 are currently paid by reinsurance. The protection for the City is $50,000,000 per occurrence and $50,000,000 annual aggregate. Workers' Compensation The City participates in the workers' compensation pool administered by the Authority. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The City is charged for the first $50,000 of each claim. Costs are pooled above that level to $50,000. Costs from $50,001 to $100,000 per claim are pooled based on the member's losses under its retention level. Costs between $100,001 and $2,000,000 per claim are pooled based on payroll. Costs between $2,000,000 and $5,000,000 are paid by excess insurance purchased by the Authority. Costs in excess of $5,000,000 are pooled by the members based on payroll. 48 CITY OF DIAMOND BAR. Notes to the Basic Financial Statements (Continued) (7) Liability, Property and Workers' Compensation Protection, (Continued) �a) Self -Insurance Programs of the Authority, (Continued) Protierty Insurance The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City's property is currently insured according to a schedule of covered property submitted by the City to the Authority. Total all-risk property insurance coverage is $100,000,000 per occurrence. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Environmental Liability The City participates in the pollution legal liability and remediation legal liability insurance which is available through the Authority. This policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of $120,000,000 for the 3 -year period from July 1, 2002 through June 30, 2005. Each member of the Authority has a $10,000,000 limit during the 3 -year term of the policy. Fidelity Bonds The City participates in the Blanket Fidelity Bond issued by the Authority to protect the City from employee dishonesty, faithful performance, depositor's forgery, computer fraud, crime -money and securities. This bond covers all employees, the Treasurer, City Clerk and/or Tax Collector and any employee required by law to be individually bonded. The bond's limit is $1,000,000 and the deductible is $2,500 per occurrence. (b) Adequacy of Protection During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. There were no significant outstanding claims at June 30, 2004. 49 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (8) Fund Deficits At June 30, 2004, the following funds had deficit balances: Amount Capital Improvement Capital Projects $ 18,520 (A) ISTEA 559,870 (B) Community Development Block Grant 124,561 (C) (A) The deficit will be funded with various government grants in future years. (B) The deficit will be reimbursed through the California Department of Transportation. (C) The deficit will be funded by future year allocations from Los Angeles County. (9) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2004 exceeded the appropriations of the following funds/departments: Budget Actual Variance Debt Service: Public Financing Authority $ - Capital Projects: Public Financing Authority - 147,069 (147,069) 25 (25) (10) Pension Plan The City of Diamond Bar contributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of PERS' annual financial report may be obtained from its executive office at 400 "P" Street, Sacramento, California 95814. 50 CITY OF DIAMOND BAR. Notes to the Basic Financial Statements (Continued) (10) Pension Plan, (Continued) Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. Benefit provisions and all other requirements are established by state statute and city contract with employee bargaining groups. Under GASB 27, the City reports an annual pension cost (APC) equal to the amzual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the "net pension obligation (NPO)." The ARC for the period July 1, 2003 to June 30, 2004 has been determined by an actuarial valuation of the plan as of June 30, 2001. The contribution rate indicated for the period is 5.696% of payroll for the Retirement Program. In order to calculate the dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2004, this contribution rate, as modified by any amendments for the year, would be multiplied by the payroll of covered employees that was actually paid during the period July 1, 2003 to June 30, 2004. The employer and the employer's auditor are responsible for determining the NPO and the APC. A summary of principle assumptions and methods used to determine the ARC is shown below. Valuation Date Actuarial Cost Method Amortization Method Average Remaining Pool Asset Valuation Method Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Inflation Payroll Growth Individual Salary Growth Retirement Program 51 June 30, 2001 Entry Age Actuarial Cost Method Level Percent of Payroll 16 Years as of the Valuation Date 3 Year Smoothed Market 8.25% (net of administrative expenses) 3.75% to 14.20% depending on Age, Service, and type of employment 3.50% 3.75% A merit scale varying by duration of employment coupled with an assumed annual inflation component of 3.50% and an annual production growth of 0.25% CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (10) Pension Plan, (Continued) Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20 -year period. Gains and losses that occur in the operation of the plan are amortized over a rolling period, which results in an amortization of 10% of unamortized gains and losses each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year amortization period. For the miscellaneous plan, the unfunded actuarial liability is amortized over a period ending June 30, 2019. Police and fire protection services are contracted services from outside agencies. Accordingly, no contribution is required for police and fire protection services. The Schedule of Funding Progress below shows the recent history of the actuarial value of assets, actuarial accrued liability, their relationship, and the relationship of the unfunded actuarial liability to payroll. The most recent PERS information is not available. Required Supplementary Information — Miscellaneous Actuarial Unfunded Annual UAAL Entry Age Normal Value Liability/ Funded Covered As a % of Valuation Date Accrued Liability of Assets (Excess Assets) Status Payroll Payroll 6/30/00 $2,587,205 $3,255,428 $(688,223) 125.8% $1,867,943 (35.773%) 6/30/01 2,999,675 3,606,037 (606,362) 120.2% 2,110,121 (28.7%) 6/30/02 3,602,219 3,682,236 (80,017) 102.2% 2,078,905 (3.8%) Miscellaneous Employees Three -Year Trend Information Fiscal Annual Pension Cost Percentage of Net Pension Year (employer contribution) APC Contributed Obligation 6/30/02 $ 85,696 100% $0 6/30/03 100,464 100% 0 6/30/04 134,451 100% 0 52 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (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. Conunitments SIGMA -Internet, Inc. (SIGMAnet) In May 2002, the City entered into an agreement with SIGMAnet. Under this agreement, for a period of three years cominencing with the first quarter of calendar year 2002 and ending with the fourth quarter of year 2004, the City shall pay to SIGMAnet, each half- year period that the City receives tax receipts from sales generated by SIGMAnet in excess of $100,000, an amount each half-year period equal to 45% for the two half-year periods during 2002 and 50% for the four half-year periods in 2003 and 2004, of all sales tax receipts generated by SIGMAnet and remitted to the City by the State Board of Equalization. (13) Prior Period Adjustments The accompanying financial statements reflect several reclassifications and adjustments which resulted in a restatement of beginning fund balances of the Proposition A and C Transit Funds. The prior period adjustment had no effect on the fund balances in total. The following schedule summarizes the effect of the prior period adjustments to the opening fund balances as of June 30, 2004: Non -Major Governmental Funds Proposition A Proposition C Transit Transit Fund balances at beginning of year, as previously reported $1,396,233 1,267,613 (a) Adjustment to properly reflect revenues previously recognized in prior year 68,851 (68,851 Fund balances at beginning of year, as restated $1,465,084 1,198,762 53 CITY OF DIAMOND BAR Notes to the Basic Financial Statements (Continued) (14) Construction Commitments The following material construction commitments existed at June 30, 2004: Project Name Golden Springs/Grand Improvements Community/Senior Center Traffic lights improvements Sycamore Canyon improvements (15) Operating Leases Expenditures as of Remaining June 30, 2004 Commitments $ 349,116 15,170 14,061,426 45,466 1,044,720 102,553 216,220 79,399 The City leases building and office facilities under noncancelable operating leases. The total costs for such leases were $247,187 for the year ended June 30, 2004. The future minimum lease payments for the lease of building and office facilities are as follows: Year ending June 30 2005 $ 261,860 2006 254,457 2007 256,880 2008 261,727 2009 264,151 2010-2011 537,995 Total $1,837,070 54 Community Development The City of Diamond Bar's Community Development Division is responsible for planning and land use administration; economic development activities; engineering and public works construction/maintenance activities; neighborhood improvement; and zoning. De Ve Bar The Community Development Division also works closely with the Building and Safety Division to ensure that the City of Diamond Bar's residents and businesses continue to live, work and play in a beautiful and safe environment. Building & Safety The Building and Safety Division is responsible for the protection of public health and safety through the enforcement of the Building Code and other related codes. This Division provides for Building and Safety plan check, permit issuance, and inspection services. IM REQUIRED SUPPLEMENTARY INFORMATION 6sl (This page intentionally left blank) i INOW) General Fund — This fund has been classified as a major fund and is used to account for resources traditionally associated with governinent which are not required legally or by sound financial management to be accounted for in another fund. 56 CITY OF DIAMOND BAR Notes to Required Supplementary Information Year ended June 30, 2004 (1) Budgetary Control and Accounting The City adheres to the following general procedures in establishing its annual budget, which is reflected in the accompanying basic financial statements: ® The annual budget adopted by the City Council provides for the general operations of the City. It includes proposed expenditures and the means of financing them. Budgeted appropriations lapse at the end of the year. ® The City Council approves total budgeted appropriations and amendments to appropriations throughout the year. The City Council must approve budget appropriation transfers between departments within a fund. The departments of the General Fund are considered to be departments for purposes of this requirement. Actual expenditures may riot legally exceed budgeted appropriations at the fund level. ® Annual budgets are adopted for all Governmental Fund Types on a basis substantially consistent with Generally Accepted Accounting Principles (GAAP). ® The budgetary information shown for revenues and expenditures represents the original adopted budget adjusted for any changes made by the City Council. For the year ended June 30, 2004, supplemental appropriations in the amount of $4,952,953 were made. ® Formal budgetary information is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations which are encumbered at year end lapse, and then are added to the following year's budgeted appropriations. However, encumbrances at year-end are reported as reservations of fund balance. (2) Expenditures in Excess of Appropriations There were no expenditures exceeding appropriations in the General Fund departments for the year ended June 30, 2004. 57 CITY OF DIAMOND BAR. General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Revenues: Taxes Intergovernmental Fines and forfeitures Licenses, permits and fees Investment income Other Total revenues Expenditures: General government: City Council City Manager City Clerk City Attorney Finance Human resources Infonnation systems General government Public information Planning Public safety: Law enforcement Fire protection Animal control Emergency preparedness Building and safety Community development Parks, recreation and culture 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 at beginning of year Fund balances at end of year Year ended June 30, 2004 12,972,400 14,207,137 12,832,694 1,374,443 11,752,364 684,781 (528,647) 527,070 1,055,717 1,937,886 1,141,360 1,221,630 (2,009,120) (2,585,3.59) (867,760) (1,363,729) (182,979) (1,892,376) 22,353,626 22,353,626 $ 22,170,647 20,461,250 58 1,109,362 (112,268) 1,029,617 (1,326,556) 2_004 (217,194) 2003 309,876 2,202,252 2,301,487 22,353,626 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Actual $ 7,190,000 7,340,000 7,759,331 419,331 7,432,575 3,151,500 3,065,480 3,001,461 (64,019) 3,463,241 612,000 662,000 733,903 71,903 813,617 2,219,981 2,144,310 1,457,345 (686,965) 1,466,557 400,000 3.50,000 182,068 (167,932) 439,45.5 83,700 116,700 225,656 108,956 74,805 13,657,181 13,678,490 13,359,764 (318,726) 13,690,2.50 150,4.50 167,020 158,224 8,796 146,567 577,025 589,330 567,445 21,885 502,914 304,670 304,.543 255,900 48,643 217,374 120,000 109,000 88,709 20,291 66,942 347,050 354,900 349,172 5,728 304,092 117,300 176,800 143,702 33,098 100,753 145,940 228,940 223,301 5,639 208,040 678,99.5 1,126,334 1,041,019 85,315 826,290 420,410 441,654 408,377 33,277 350,954 437,850 445,050 425,692 19,358 438,517 4,454,750 4,457,750 4,297,019 160,731 4,256,945 7,360 7,360 7,359 1 7,359 94,500 90,500 79,525 10,975 79,044 11,410 72,410 47,777 24,633 7,188 415,000 435,990 389,618 46,372 419,932 2,429,920 2,868,776 2,235,765 633,011 1,873,428 2,259,770 2,330,780 2,114,090 216,690 1,946,025 12,972,400 14,207,137 12,832,694 1,374,443 11,752,364 684,781 (528,647) 527,070 1,055,717 1,937,886 1,141,360 1,221,630 (2,009,120) (2,585,3.59) (867,760) (1,363,729) (182,979) (1,892,376) 22,353,626 22,353,626 $ 22,170,647 20,461,250 58 1,109,362 (112,268) 1,029,617 (1,326,556) 1,258,803 (666,016) (217,194) 1,146,535 363,601 309,876 2,202,252 2,301,487 22,353,626 - 20,052,139 22,663,502 2,202,2.52 22,353,626 (This page intentionally left blank) Public Works The Public Works Divisionprovides information on general engineering matters relating to City streets, publ is right-of-ways, City's capital projects, utilities, traffic related issues, and more. The Division coordinates City projects and plans with other governmental agencies to ensure that k the City's concerns are addressed.;., y In addition, staff are also responsible for the day-to-day maintenance of all publicly owned properties, including streets, curbs, gutters, sidewalks, traffic signals, signs, street lights, sewers/storm drains and landscaping. SUPPLEMENTARY SCHEDULES 59 Assets Cash and investments Cash and investments with fiscal agent Accounts receivable, net Due from other governments Notes receivable Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other funds Deferred revenue Advance to other governments Total liabilities Fund balances: Reserved for: Encumbrances Notes receivable Unreserved Total fund balances CITY OF DIAMOND BAR Non -Major Governmental Funds Combining Balance Sheet June 30, 2004 $ 212,614 - Debt 206,616 16,367 - - 16,367 5,517 Service Capital Project 623,749 684,439 - - 684,439 Fund Fund - 88,585 - Special Public Grand Revenue Financing Avenue Totals Funds Authority Construction 2004 2003 $ 6,841,008 - 111,580 6,952,588 7,918,594 - 505,915 - 505,915 614,143 44,598 - - 44,598 39,718 819,332 - - 819,332 917,614 88,585 - - 88,585 - $ 7,793,523 505,915 111,580 8,411,018 9,490,069 $ 212,614 - - 212,614 206,616 16,367 - - 16,367 5,517 642,305 - - 642,305 623,749 684,439 - - 684,439 623,909 88,585 - - 88,585 - 1,644,310 - - 1,644,310 1,459,791 17,276 - 88,585 - 6,043,352 505,915 6,149,213 505,915 17,276 40,020 - 88,585 - 111,580 6,660,847 7,990,258 111,580 6,766,708 8,030,278 Total liabilities and fund balances $ 7,793,523 505,915 111,580 8,411,018 9,490,069 M CITY DfDIAMOND BAR Non -Major Governmental Funds Combining Statement ofRevenues, Expendituresand Cbanges ioFund Balances Total revenues . Expenditures _—_ Current: General government Public safety Highway and streets Community development Debt service: Interest charges Year ended June 30, 2004 Debt - 555,232 Service Capital Project Fund Fuu Gpeciul Public Grand Revenue Financing Avenue Funds Aothodtv Construction $ 555,232 - - 555,232 3,150`507 - - 3,150"507 709,011 - - 709,011 115,469 5,206 - - - 120"675 - - 4,530,219 5,206 557/6)l 4,899,615 706,l]7 163,946 13 6,327,312 - 1,489 - 1/489 752 35,881 - - 35,881 202,780 1,365,737 - - 1,365,737 1,006"768 1,184,091 - - 1,184"091 935,185 - 145,580 - 145,580 86,562 Total expenditures 2,585,709147,069 - 2,732,778 2�32,047 Excess (defioieuov)nfrevenues over (ooder)expenditures 1,944'510 - 1`802,647 4,095,265 Other fiouooiugsources (oueo): Transfers in - 33,635 - 33,635 1,321,275 Transfers out - - Total other financing sources (uses) 33,635 - Net change iufund balances (1,155,342) (108,228) - (I,263`570) 2`501`162 Fund balances a1beginning nfyear, unrestated 7,304,555 614,143 111`580 8,030,278 5,529,116 Fund balances u1end ofyear % 6]49,213 505`915 lll,580 6,760,708 8,030,278 00 (This page intentionally left blank) �,-Iyxzjgn �,,w The following Special Revenue Funds have been classified as non -major funds in the accompanying financial statements: State Gas Tax Fund - To account for state gasoline taxes received under Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highways Code. State law requires that these revenues be utilized solely for street related purposes. Proposition A Transit Fund - To accow-it for the receipt and expenditure of the City's share of the V2cent sales tax levied in Los Angeles County for local transit purposes. Proposition C Transit Fund - To account for the receipt and expenditure of Proposition C funds from the Los Angeles Coui-ity Metropolitan Transportation Authority for the City's transit and transit -related improvement projects. ISTEA Fund - The Intermodal Surface Transportation Enhancement Act (ISTEA) Fund accounts for transport related receipts and expenditures. Traffic Congestion Relief Fund - To account for revenues and expenditures for the City's street or road maintenance or reconstruction pursuant to A132928. Integrated Waste Management Fund - To account for revenues and expenditures related to the City's waste reduction efforts as related to AB939. Air Quality Improvement Fund - To account for motor vehicle registration fees received from the South Coast Air Quality Management District to reduce air pollution from motor vehicles pursuant to the California Clean Air Act of 1988. California Law Enforcement Equipment Program Fund (CLEEP) - To account for revenues received from the California CLEEP fund and expenditures made for the purchase of high- tecl-niology equipment. Park and Facility Development Fund - To account for the development and enhancement of the City's parks. Community Development Block Grant Fund - To account for the City's allotment of CDBG funds from the federal government via the County of Los Angeles Community Development Commission. These funds are used to fund community development programs and projects benefiting low and moderate income citizens. Citizens Option for Public Safety Fund (COPS) - To account for COPS grants received from both the state and federal government. The purpose of these funds are to effliarice the City's public safety budget and to fund special public safety related projects. Asset Seizure Fund - To accotint for Narcotics Asset Forfeiture funds received from the federal government. It is required that these funds be used to enhance drug and law enforcement activities. Landscape Maintenance District Fund - To account for revenues and expenditures related to the special property tax assessments which were set up in accordance with the Landscape and Lighting Act of 1972. The purpose of these districts is to improve the landscaping of City owned medians and hillsides. 62 Assets Cash and investments Accounts receivable Due from other governments Notes receivable Total assets Liabilities and fund balances Liabilities: Accounts payable Accrued payroll Deferred revenue Due to other funds Advance from other governments Total liabilities Fund balances: Reserved for: Encumbrances Notes receivable Unreserved Total fund balances (deficit) Total liabilities and fund balances CITY OF DIAMOND BAR Non -Major Special Revenue Funds Combining Balance Sheet June 30, 2004 State Prop. A Prop. C Gas Tax Transit Transit ISTEA Traffic Integrated Congestion Waste Relief Management f $ 358,933 1,549,393 581,331 - - 529,729 - - - - - 44,598 104,010 - - 559,870 - - `I $ 462,943 1,549,393 581,331 559,870 - 574,327 i $ - 89,832 - - - 4,317 - - - - - 559,870 - - 559,870 - 94,149 - 1,119,740 - 5,780 7,657 13,437 462,943 1,455,244 581,331 (559,870) - _ 560,890 462,943 1,455,244 581,331 (559,870) - 560,890 $ 462,943 1,549,393 581,331 559,870 - 574,327 63 Air Park and Community 5,517 Landscape 623,909 - - 642,305 Quality Facility Development Asset Maintenance Totals CLEEP Development Block Grant {OPS Seizure District 2004 ----- 2003 ----' 152,800 85,844 1,873,323 - 221,409 913,025 1,175,161 6,841`008 7`807,014 _ - - - - - - 44,598 99,718 18,587 - - 124,569 - - 12,290 819,322 917,614 - - - 88,585 - - - 88,585 - 171 ,387 85,844 1,873,323 213`154 221,469 313,025 1,187,457 7793 52] 8,764,346 24 - - 41`787 147 564 - - 339 - - - - 124,569 - ' - - 82,435 - - - - 88.585 - - ' 337,715 147 - 75,044 212,614 286/616 - 3,490 10"367 5,517 - - 684,439 623,909 - - 642,305 623,749 - - 88,585 - 78,534 1/44,310 )`459.791 15`182 - - - - - 2/093 17,276 40,020 - - - 88,505 - - - 88"585 - l55���� 616 85,844 1,873,323 __-��46 221,322 313"025 1,106,830 6,043,352 7_z2 ,��� 170799 85,844 1,873,323 221,322 313,025 1,108,923 6,149213 7,304,555 171 ,387 85,844 1,873,323 213,154 221,469 313/025 1,187,457 7793 523 8,764,346 64 CITY OF DIAMOND BAR Non -Major Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2004 Revenues: Special assessments Intergovernmental Charges for services Investment income Other revenues Total revenues Expenditures: Public safety Highways and streets Community development 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 (deficit) at beginning of year, as restated Fund balances (deficit) at end of year State Prop. A Prop. C Gas Tax Transit Transit - 40,006 32,495 - - 1,080,550 805,898 670,980 - 529,330 - 7,400 20,669 16,915 1,087,950 1,355,897 687,895 1,365,737 - 1,365,737 - 1,087,950 (9,840) 687,895 (964,817) - (1,305,326) (964,817) - (1,305,326) 123,133 (9,840) (617,431) . Traffic Integrated Congestion Waste k ISTEA Relief Management - 40,006 32,495 - - 179,681 - 272 7,982 - 40,278 220,158 - - 208,169 - - 208,169 40,278 11,989 (40,278) (40,278) - - - 11,989 339,810 1,465,084 1,198,762 (559,870) _ - 548,901 i $ 462,943 1,455,244 581,331 (559,870) - 560,890 i 65 Air Park and Community Landscape 571,214 4,530,219 Quality Facility Development Asset Maintenance Totals Improvement CLEEP Development Block Grant COPS Seizure District 2004 2003 - - - - - - 555,232 55.5,232 557,601 69,098 - - 327,199 124,281 - - 3,150,507 4,899,615 - - - - - - 709,011 706,137 2,335 1,218 34,953 - 3,300 4,443 15,982 11.5,469 160,555 13 71,433 1,218 34,953 327,199 127,581 4,443 571,214 4,530,219 6,323,921 7,304,555 5,397,215 - - - - 35,881 - 221,322 35,881 202,780 - - - - - - - 1,365,737 1,006,768 78,872 - - 304,510 - - 592,540 1,184,091 935,185 78,872 - - 304,.510 35,881 - 592,540 2,585,709 2,144,733 (7,439) 1,218 34,953 22,689 91,700 4,443 (21,326) 1,944,510 4,179,188 - - - - - - - - 623,209 - - (619,409) (83,217) (65,993) - (20,812) (3,099,852) (2,895,057) - - (619,409) (83,217) (65,99.3) - (20,812) (3,099,852) (2,271,848) (7,439) 1,218 (584,456) (60,528) 25,707 4,443 (42,138) (1,155,342) 1,907,340 178,238 84,626 2,457,779 (64,033) 195,615 308,582 1,151,061 7,304,555 5,397,215 170,799 85,844 1,873,323 (124,561) 221,322 313,025 1,108,923 6,149,213 7,304,555 66 CITY OF DIAMOND BAR State Gas Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Investment income Total revenues Excess of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 67 2004 2003 Variance with Final Budget Final Positive Budget Actual (Negative) Actual $ 1,031,760 1,080,550 48,790 1,170,239 3,000 7,400 4,400 6,520 1,034,760 1,087,950 53,190 1,176,759 1,034,760 1,087,950 53,190 1,176,759 (1,038,520) (964,817) 73,703 (1,040,361) (1,038,520) (964,817) 73,703 (1,040,361) (3,760) 123,133 126,893 136,398 339,810 339,810 - 203,412 $ 336,050 462,943 126,893 339,810 67 CITY OF DIAMOND BAR Proposition A Transit Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Charges for services Investment income Total revenues Expenditures: Current: Highways and streets Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances at beginning of year, as restated Fund balances at end of year .: 2004 2003 Variance with Final Budget Final Positive Budget Actual (Negative) Actual $ 803,130 805,898 2,768 694,969 550,000 529,330 (20,670) 517,930 30,000 20,669 (9,331) 26,717 1,383,130 1,355,897 (27,233) 1,239,616 1,557,810 1,365,737 192,073 1,006,768 1,557,810 1,365,737 192,073 1,006,768 (174,680) (9,840) 164,840 232,848 (174,680) (9,840) 164,840 232,848 1,465,084 1,465,084 - 1,163,385 $ 1,290,404 1,455,244 164,840 1,396,233 CITY OF DIAMOND BAR Proposition C Transit Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Investment income Total revenues Excess of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year, as restated Fund balances at end of year 2004 Final Budget Actual $ 659,000 670,980 20,000 16,915 308,002 679,000 687,895 1,129,227 679,000 687,895 (1,604,433) (1,305,326) (925,433) (617,431) 1,198,762 1,198,762 $ 273,329 581,331 We Variance with Final Budget Positive (Negative) 11,980 702,295 (3,085) 28,507 308,002 8,895 730,802 1,129,227 8,895 730,802 299,107 (592,416) 299,107 (592,416) 308,002 a 138,386 - 1,129,227 308,002 1,267,613 i i CITY OF DIAMOND BAR, ISTEA Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Total revenues Excess of revenues over expenditures Net change in fund balances Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year 70 2004 2003 Variance with Final Budget Final Positive Budget Actual (Negative) Actual 752,130 752,130 752,130 - 752,130 (559,870) (559,870) - (1,312,000) $ (559,870) (559,870) - (559,870) CITY OF DIAMOND BAR 40,006 Traffic Congestion Relief Fund 123,020 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 3,049 Year ended June 30, 2004 163,000 40,278 2004 2003 126,069 Variance with Final Budget Final Positive Budget Actual (Negative) Actual Revenues: Intergovernmental Investment income Total revenues Excess of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 71 $ 158,000 40,006 (117,994) 123,020 5,000 272 (4,728) 3,049 163,000 40,278 (122,722) 126,069 163,000 40,278 (122,722) 126,069 (40,278) (40,278) (40,278) (40,278) i - (268,668) - (268,668) 122,722 - (122,722) (142,599) - - - 142,599 $ 122,722 - (122;722) - CITY OF DIAMOND BAR Integrated Waste Management Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Charges for services Investment income Other revenues Total revenues Expenditures: Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 60,000 200,000 20,000 326,220 2004 32,495 179,681 7,982 2003 Variance with Final Budget Positive (Negative) Actual (27,505) 39,916 (20,319) 188,207 (12,018) 10,406 13 220,158 (59,842) 238,542 208,169 118,051 135,810 208,169 118,051 135,810 (46,220) 11,989 58,209 102,732 (46,220) 11,989 58,209 102,732 548,901 548,901 - 446,169 $ 502,681 560,890 58,209 548,901 72 CITY OF DIAMOND BAR Air Quality Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Investment income Total revenues Expenditures: Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 2004 Final Budget Actual 2003 Variance with Final Budget Positive (Negative) Actual $ 65,000 69,098 4,098 68,679 5,000 2,335 (2,665) 4,695 70,000 71,433 1,433 73,374 117,810 78,872 38,938 154,696 117,810 78,872 38,938 154,696 i (47,810) (7,439) 40,371 (81,322) (47,810) (7,439) 40,371 (81,322) 178,238 178,238 - 259,560 $ 130,428 170,799 40,371 178,238 73 CITY OF DIAMOND BAR. CL EEP Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Investment income Total revenues Expenditures: Public safety Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fu -id balances Fund balances at begimling of year Fund balances at end of year 2004 Final Budget Actual 1,218 1,218 2003 Variance with Final Budget Positive (Negative) Actual - 24,624 1,218 2,055 1,218 26,679 60,215 60,215 - 1,21.8 1,218 (33,536) - 1,218 1,218 (33,536) 84,626 84,626 - 118,162 $ 84,626 85,844 1,218 84,626 74 CITY OF DIAMOND BAR Park and Facility Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Investment income Total revenues Excess of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 2004 Variance with Final Budget Final Positive Budget Actual (Negative) $ 40,000 34,953 (5,047) 40,000 34,953 (5,047) 40,000 34,953 (5,047) (943,216) (619,409) (903,216) (584,456) $ 1,554,563 1,873,323 75 2003 Actual 42,038 42,038 42,038 - 623,209 323,807 - 323,807 623,209 318,760 665,247 318,760 2,457,779 CITY OF DIAMOND BAR Community Development Block Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Total revenues Expenditures: Community development, Total expenditures Excess of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances (deficit) at beginning of year Fund balances (deficit) at end of year (232,082) 2004 148,865 2003 (232,082) (83,217) Variance (786,811) 33,252 (60,528) with Final 246,554 (64,033) (64,033) Budget (310,587) Final (124,561) Positive (64,033) Budget Actual (Negative) Actual $ 629,385 327,199 (302,186) 1,168,890 629,385 327,199 (302,186) 1,168,890 364,051 304,510 59,541 135,525 364,051 304,510 59,541 135,525 265,334 22,689 (242,645) 1,033,365 (232,082) (83,217) 148,865 (786,811) (232,082) (83,217) 148,865 (786,811) 33,252 (60,528) (93,780) 246,554 (64,033) (64,033) - (310,587) $ (30,781) (124,561) (93,780) (64,033) 76 CITY OF DIAMOND BAR COPS Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Investment income Total revenues Expenditures: Public safety Total expenditures Excess of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 2004 2003 Variance with Final Budget Final Positive Budget Actual (Negative) Actual $ 159,500 124,281 (35,219) 154,853 5,000 3,300 (1,700) 6,666 164,500 127,581 (36,919) 161,519 45,500 35,881 9,619 94,158 45,500 35,881 9,619 94,158 119,000 91,700 (27,300) 67,361 (173,000) (65,993) 107,007 (155,029) (173,000) (65,993) 107,007 (155,029) (54,000) 25,707 79,707 (87,668) 195,615 195,615 - 283,283 $ 141,615 221,322 79,707 195,615 77 CITY OF DIAMOND BAR. Asset Seizure Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Investment income Total revenues Expenditures: Public safety Total expenditures Excess (deficiency) of revenues over (under) expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 2004 Final Budget Actual 4,443 4,443 2003 Variance with Final Budget Positive (Negative) Actual 4,443 6,604 4,443 6,604 48,407 48,407 4,443 4,443 (41,803) - 4,443 4,443 (41,803) 308,582 308,582 - 350,385 $ 308,582 313,025 4,443 308,582 78 CITY OF DIAMOND BAR Landscape Maintenance District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Special assessments Investment income Total revenues Expenditures: Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 552,047 29,000 581,047 2004 Actual Variance with Final Budget Positive (Negative) 2003 Actual 555,232 3,185 557,601 15,982 (13,018) 23,298 571,214 (9,833) 580,899 800,115 592,540 207,575 509,154 800,115 592,540 207,575 509,154 (219,068) (21,326) 197,742 71,745 (614,010) (20,812) 593,198 (51,772) (614,010) (20,812) 593,198 (51,772) (833,078) (42,138) 790,940 19,973 1,151,061 1,151,061 - 1,131,088 $ 317,983 1,108,923 790,940 1,151,061 79 The Debt Service Fund is used primarily to account for the accumulation of resources for the payment of principal and interest on general long-term debt of the City. The following has been classified as a non -major fund in the accompanying financial statements. Public Financing Authority Fund — To account for the payment of principal and interest on the Lease Revenue Bonds. 80 CITY OF DIAMOND BAR Public Financing Authority Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Investment income Total revenues Expenditures: General government Debt. service: Interest charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources: Transfers in Total other financing sources Net change in fund balances Fund balances at beginning of year Fund balances at end of year 2004 (1,489) 2003 - 145,580 Variance 86,.562 with Final (147,069) 87,314 Budget - (141,863) Final Positive Budget Actual (Negative) Actual $ - 5,206 5,206 3,391 - 5,206 5,206 3,391 - 1,489 (1,489) 752 - 145,580 (145,580) 86,.562 - 147,069 (147,069) 87,314 - (141,863) (141,863) (83,923) 33,635 33,635 698,066 33,635 33,635 698,066 - (108,228) (108,228) 614,143 614,143 614,143 - - $ 614,143 505,915 (108,228) 614,143 81 Capital Projects Funds are established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Special Revenue Funds). Major Funds: Public Financing Authority Capital Project Fund — To account for the financing of public improvements and other capital purchases for the City. Capital Improvement Fund — To account for the costs of constructing street improvements, park improvements, and other public improvements not normally included within the other Capital Projects funds. Financing is provided by developer fees and interfimd transfers from the Special Revenue Funds and the General Fund. Nonmajor Fund: Grand Avenue Construction Fund — To account for the expenditure of Rinds received from the Comity of San Bernardino in settlement of the Grand Avenue litigation. These funds are used for street and traffic improvements along Grand Avenue. 82 CITY OF DIAMOND BAR Public Financing Authority Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 2004 Final Budget Actual Revenues: Investment income $ - 93,186 Total revenues - 93,186 Expenditures: General government - 25 Fiscal charges and issuance costs - Total expenditures - 25 Excess (deficiency) of revenues over (under) expenditures - 93,161 Other financing sources (uses): Transfers out Bonds issued Bonds discount Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 2003 Variance with Final Budget Positive (Negative) Actual 93,186 55,521 (25) 321 (25) 1,081,261 93,161 (1,025,740) (5,631,177) (5,664,315) (33,138) (6,871,849) 13,755,000 (5,631,177) (5,664,315) (33,138) 6,745,601 (5,631,177) (5,571,154) 60,023 5,719,861 5,719,861 5,719,861 - - $ 88,684 148,707 60,023 5,719,861 83 CITY OF DIAMOND BAR Capital Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Revenues: Intergovernmental Licenses and permits Other Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources: Transfers in Total other financing sources Net change in fund balances Fund balances at beginning of year Fw-id balances (deficit) at end of year 2004 Final $ 201,184 201,184 130,000 - 89,706 9,295 Variance with Final Budget Positive 240,000 (130,000) 570 14,008,645 9,261,289 4,747,356 8,057,482 14,008,64.5 9,261,289 4,747,356 8,057,482 (13,587,755) (9,050,810) 4,536,945 (7,816,912) 12,382,060 8,763,973 (3,618,087) 7,908,956 12,382,060 8,763,973 (3,618,087) 7,908,956 (1,205,695) (286,837) 918,858 92,044 268,317 268,317 - 176,273 $ (937,378) (18,520) 918,858 268,317 84 CITY OF DIAMOND BAR Grand Avenue Construction Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2004 Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 85 2004 2003 Variance with Final Budget Final Positive Budget Actual (Negative) Actual $ (111,580) - (111,580) - 111,580 (20,321) 111,580 (20,321) (111,580) - 111,580 (20,321) 111,580 111,580 - 131,901 $ - 111,580 111,580 111,580 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. Funds included are: Self -Insurance Fund — To account for payments made for the City's general liability insurance premium. Equipment Replacement Fund — To account for the replacement of the City's rolling equipment stock or vehicles. Computer Replacement Fund — To account for the replacement and/or enhancement of the City's computer-related equipment. 86 Assets Current assets: Cash and investments Accounts receivable Total current assets Property, plant and equipment: Machinery and equipment Less accumulated depreciation Net property, plant and equipment Total assets Liabilities Current liabilities: Accounts payable Due to other funds Total current liabilities Net assets Invested in capital assets Unrestricted Total net assets (deficit) CITY OF DIAMOND BAR Internal Service Funds Combining Statement of Net Assets June 30, 2004 Self- Equipment Computer Totals Insurance Replacement Replacement 2004 2003 $ 1,481,256 194,196 159,476 - 1,640,732 194,196 - 1,675,452 1,511,807 -- 159,476 91,718 - (55,384) - 1,834,928 1,603,525 - 84,817 13,506 98,323 98,323 - (55,384) (11,410) (66,794) (45,331) - 29,433 2,096 31,529 52,992 1,640,732 223,629 2,096 1,866,457 1,656,517 665 665 3,396 3,396 4,061 4,061 - 29,433 2,096 31,529 52,992 1,640,732 194,196 (4,061) 1,830,867 1,603,525 $ 1,640,732 223,629 (1,965) 1,862,396 1,656,517 87 CITY OF DIAMOND BAR. Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Year ended June 30, 2004 Operating revenues: Insurance deposits Total operating revenues Operating expenses: Insurance premiums Depreciation Maintenance Total operating expenses Operating income (loss) Non-operating revenues: Investment income Total non-operating revenues Income (loss) before transfers Transfers in Net change in net assets Total net assets at beginning of year Total net assets (deficit) at end of year Self- Equipment Computer Insurance Replacement Replacement $ 213,087 213,087 Totals 2004 2003 - 213,087 91,718 213,087 91,718 183,752 - - 183,752 162,064 - 16,961 4,502 21,463 19,032 _ - 6,430 6,430 4,644 183,752 16,961 10,932 211,645 185,740 29,335 (16,961) (10,932) 1,442 (94,022) 17,915 2,756 13 20,684 27,650 17,915 2,756 13 20,684 27,650 47,250 (14,205) (10,919) 22,126 (66,372) 183,753 - - 183,753 193,395 231,003 (14,205) (10,919) 205,879 127,023 1,409,729 237,834 8,954 1,656,517 1,529,494 $ 1,640,732 223,629 (1,965) 1,862,396 1,656,517 88 CITY OF DIAMOND BAR Internal Service Funds Combining Statement of Cash Flows Year ended June 30, 2004 Self- Equipment Computer Insurance Replacement Replacement Cash flows from operating activities: Insurance deposits Insurance payments Cash paid for operating expenses Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: Cash transferred from other funds Net cash provided by noncapital financing activities Cash flows from capital and related activities: Purchase of fixed assets Net cash provided by (used for) capital and related activities Cash flows from investing activities: Interest received from investments Totals 2004 2003 $ 145,329 - - 145,329 72,838 (183,752) - - (183,752) (5,815) - —Q369) ,369) (2,369) 4.644 (38,423) - (2,369)—(4D-792 ) 62.379 183,753 183,753 183.753 193,395 183.753 193.395 (24,330) - - - - (24,330) 17,915 2,756 13 20,684 27,650 Net cash provided by investing activities _, 17,915 2.756 13 20.684 27.650 Net increase (decrease) in cash and cash equivalents 163,245 2,756 (2,356) 163,645 259,094 Cash and cash equivalents at beginning of year 1,318.,011 191,440 2.356 1,511,807 1.252,713 Cash and cash equivalents at end of year $ 1,481,256 194,196 - 1,675,452 1,511,807 Reconciliation of net operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) $ 29,335 (16,961) (10,932) 1,442 (94,022) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation - 16,961 4,502 21,463 19,032 (Increase) decrease in accounts receivable (67,758) - - (67,758) (18,880) (Increase) decrease in prepaid insurance - - - - 156,249 Increase (decrease) in accounts payable - - 665 665 - Increase (decrease) in due to other funds - - 3.396 3,396 Net cash provided by (used for) operating activities $ (38,423) - (2,369) (40,792) 62,379 Noncash investing capital and financing activities: During the fiscal year ended June 30, 2004, there was no noncash investing, capital or financing activities. 89 Public Information The primary mission of the Public Information Division is to distribute public information to Ce%6p Ate tae �ia�an� Satrer��01 Bar Center brand'©. Jo'n e ZOOM Ommhunity celebration of the O. ndCPentn9 of ala AcGv e d Bar Center. s wtll include a ribbon cgtffng ceremony, Ifni gulded tours, Graff 7 1 acBvifies, special demonstrations, a special and guest appear ay an Cale Will SdarThis,and dotn., muss W�'bg: eawaysn del r chugs street from grandest facilFor ina,ity of ap a excitement of Chef ood and morel So ffs FfHt the Call 8 9 707 or�or n., n about mpg actio heed opening Bar C Of tba doors fniao hear 839 70,5 p I 'On On Grand 7 ut the Diacall mond Bar �entee facility, residents, businesses-�?/l%JJia1no11c%Blrr Please friu�l, and City employees �eCitY°fpa o9a11/f'0"ll'i m°nd Bar as wet l as marl<et^the arterceMa9�q nz any o'bea r Center Cyan Hasse he D,amond Be, City's programs and "'O'niallona e available al np Ybalhspa �%17rp�Fy.1,1/• activities to the °jPta'zalio S panepanlsa dare avM4,1°�(�t�O�" �Td�a1F h� game or re invi /+� /v!'tile �• community. want to m:°ns ias Inamarion "Ong with their Enlei J'(�y�fn�Qf��1y! representYarrhis oPPonunit"' DIha Year -rha elan�zalionariheeveni (-iu morL �' J ammdBarCenterrdCpanin9It1ha n "rnatigq't��� tit Parlicipa oneeaficn on Open caH°We Plea=�, (niaef (irri�t 13'�lliir,, L uro9aas7055 7O9,939.i05g ���1�' ,� se�arth W L7N� W not yr si}9 �Pt°$FA4mw Cts a.,mail n�ficacion of nc NaWsi Ccan�l d rni' AOandlab e' OPva�nities an 3ezt ��21. 'dB•,?1 Unu}k6ail,..es 4t9d}li+ p` Ainnivi\oil fxxle Cnlitx b> Chip 1tt1rC The Division accomplishes its mission through a variety of activities including: a monthly City newsletter; the City's website; the government access cable channel DBTV 3; the Info ToGo automated telephone system; periodic surveys; promotional materials; and media relations. 40 �i STATISTICAL SECTION a $7,000,000 *o.mm.mm $5,000,000 $4,000,000 � $3.000.000 $2,000,000 Government -Wide Expenses byFunction City of Diamond Bar Government -wide Expenses by Function (unaudited) ` Fiscal Year �^ Function 2OO2-O3 2003-O4 \ / General government $ 3.315.082 $ 3.713.530 Public safety _~ 4.SO8.44S 4.875.823 > j Highways and streets 1.008.768 1.365.737 Community development 3.370.118 5.724,606 Parks, recreation &culture 2.300.150 2.580.454 interest and Fiscal Charges 535,752 171,223 / $ 15.525.317 $ 18.431.373 $7,000,000 *o.mm.mm $5,000,000 $4,000,000 � $3.000.000 $2,000,000 Government -Wide Expenses byFunction General Public safety Highways and Community Parks, recreation /nmresand government streets development ucuuure Fiscal Charges Fiscal Year 2003-04 Source: City Finance Department This iathe second year hoshow this information since the implementation of GASB 34 MRA P IM on RON gg General Public safety Highways and Community Parks, recreation /nmresand government streets development ucuuure Fiscal Charges Fiscal Year 2003-04 Source: City Finance Department This iathe second year hoshow this information since the implementation of GASB 34 City of Diamond Bar Government -wide Revenues General revenues Taxes Investment income Other Program revenues Charges for services Operating grants and contributions Capital grants and contributions Total government -wide revenues: FY 2002-03 FY 2003-04 $ 10.837,951 $ 10.510.543 438.455 182.089 84,795 250250 $ 11.362.201 $ 10.942.862 $ 2.872.909 $ 3`033.845 4.390.722 4.008.446 1,779,510 261,994 $ 9.043.141 $ 7.384.085 Source: City Finance Department This is the second year to show this information since the implementation of GASB 34 92 Table 3 City of Diamond Bar General Government Expenditures by Function (1) Last Ten Fiscal Years (unaudited) Fiscal Year General Government* Public Safety Public Works Culture & Recreation Capital Outlay* Debt Service Total 1994-95 2,270,162 4,099,515 2,678,261 1,072,288 1,726,067 108,780 11,955,073 1995-96 2,319,801 4,110,104 2,372,404 1,127,136 1,579,421 104,930 11,613,796 1996-97 2,615,272 4,095,518 2,279,731 1,270,617 1,541,307 10,320 11,812,765 1997-98 3,145,257 4,094,401 2,402,426 1,666,198 5,189,027 28,064 16,525,373 1998-99 2,895,986 4,738,375 2,839,789 1,489,708 10,666,740 106,440 22,737,038 1999-00 4,071,192 4,654,187 2,679,598 1,805,489 6,397,292 305,090 19,912,848 2000-01 4,159,392 4,960,517 2,679,692 1,898,087 3,131,469 3,526,460 20,355,617 2001-02 3,231,328 4,933,713 2,987,084 1,737,357 6,375,957 0 19,265,439 2002-03 3,299,041 4,973,248 3,679,856 1,946,025 8,057,482 535,752 22,491,404 2003-04 3,663,055 4,857,179 4,785,593 2,114,090 9,261,289 145,580 24,826,786 28,000,000 26,000,000 24,000,000 22,000,000 20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Total General Fund Expenditures 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year (1) Includes General, Special Revenue, Capital Project and Debt Service Funds. *Note: General Government includes Community Development Expenditures Capital Outlay includes Cost of Property sold. Source: City Finance Department 93 g � 00 �" .} t7'^� 10, y 000 : 0- I'V I' 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year (1) Includes General, Special Revenue, Capital Project and Debt Service Funds. *Note: General Government includes Community Development Expenditures Capital Outlay includes Cost of Property sold. Source: City Finance Department 93 Table 4 City of Diamond Bar General GovernmentRevenuesb Sourcet 4 Last Ten Fiscal Years (unaudited) Fiscal Year Taxes* Special Assessments Licenses & Permits Inter- Governmental Fines & Forfeitures Use of Money & Property Other"* Revenue Total 1994-95 5,174,343 476,148 881,588 5,640,400 253,824 732,693 56,399 13,215,395 1995.96 5,538,406 538,896 1,066,475 5,735,096 261,138 863,855 50,787 14,054,653 1996-97 5,708,029 530,375 1,417,073 6,354,150 176,267 1,005,683 42,856 15,234,433 1997-98 5,943,775 561,772 1,247,155 9,178,049 219,075 1,166,554 1,329,957 19,646,337 1998-99 6,359,624 553,443 2,147,195 6,535,812 573,449 1,191,305 6,159,240 23,520,068 1999-00 8,006,841 547,041 1,666,726 7,713,344 556,527 1,395,785 59,443 19,945,707 2000-01 7,229,142 547,407 2,012,263 7,131,505 509,676 1,672,384 92,227 19,194,604 2001-02 7,665,970 546,662 1,786,971 6,534,225 529,921 998,283 95,190 18,157,222 2002-03 8,138,712 557,601 1,467,127 8,602,856 813,617 658,922 74,818 20,313,653 2003-04 8,468,342 555,232 1,457,345 6,353,152 733,903 395,929 234,951 18,198,854 W. Total General Fund Revenues 24,000,000 22,000,000 20,000,000 18,000,000 16,000,000 14,000,000 IN 0 12,000,000 10,000,000 8,000,000 6,000,000 pg 4,000,000 2,000,000 Q 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year W. t (1) Includes General, Special Revenue and Capital Project Funds. *Note: Taxes category includes Charges for Services. **Note: Other Revenue includes proceeds from sale of property, Source: City Finance Department 3,000,000 2,500,000 (n 2,000,000 C cn 1,500,000 ~ 1,000,000 500,000 0 Total Secured Property Tax Collections ¢4: Y x-` Rat" IR -g Table 5 City of Diamond Dar AN W RIP Secured Property Tax Levies and Collections ��" IT, r Last Ten Fiscal Years X"�'` (unaudited) Fiscal Total Total Current Percentage of Deliquent Tax Year Current Levy Collections Levy Collected Receivables 1994-95 1,804,068 1,625, 911 90.12% 178,157 j 1995-96 1,796,593 1,711,983 95.29% 84,610 1996-97 1,809,197 1,625,252 89.83% 183,945 1997-98 1,781,264 1,680,816 94.36% 100,448 1998-99 1,810,266 1,758,764 97.16% 51,502 1999-00 1,904,915 1,813,904 95.22% 91,011 2000-01 1,954,530 1,847,817 94.54% 106,713 2001-02 2,129,310 2,017,399 94.74% 111,911 2002-03 2,301,716 2,211,793 96.09% 89,923 2003-04 2,504,974 2,390,554 95.43% 114,420 'i 3,000,000 2,500,000 (n 2,000,000 C cn 1,500,000 ~ 1,000,000 500,000 0 Total Secured Property Tax Collections 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year *Note: The City of Diamond Bar settled a property tax lawsuit with Los Angeles County that resulted in additional property tax payments totalling $1,882,789. The funds were received in three (3) payments dated February 1994, August 1994 and August 1995. These amounts are not included in the above figures as they were associated with the initial property tax transfer at the date of incorporation. Source: Los Angeles County Auditor/Controller. W ¢4: Y x-` Rat" IR -g AN W RIP ��" IT, r X"�'` 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year *Note: The City of Diamond Bar settled a property tax lawsuit with Los Angeles County that resulted in additional property tax payments totalling $1,882,789. The funds were received in three (3) payments dated February 1994, August 1994 and August 1995. These amounts are not included in the above figures as they were associated with the initial property tax transfer at the date of incorporation. Source: Los Angeles County Auditor/Controller. W � - • City of Diamond Bar Assessed and Estimated Actual Values of Taxable Property Last Ten Fiscal Years (unaudited) Fiscal Year Secured Gross Value Unsecured Gross Value Public Utility Exemptions Total Percentage Increase 1994-95 3,619,436,021 57,158,841 820,862 33,523,553 3,643,892,171 2.30% 1995-96 3,659,337,876 60,689,091 825,138 35,979,540 3,684,872,565 1.12% 1996-97 3,660,223,979 64,187,086 828,963 27,479,616 3,697,760,412 0.35% 1997-98 3,645,994,575 67,863,390 884,347 37,731,129 3,677,011,183 -0.56% 1998-99 3,730,370,102 74,441,058 876,688 38,373,706 3,767,314,142 2.46% 1999-00 3,873,275,798 63,844,054 125,921 36,494,583 3,900,751,190 3.54% 2000-01 4,098,200,125 67,438,047 116,405 40,088,648 4,125,665,929 5.77% 2001-02 4,327,911,837 71,622,089 127,441 41,869,703 4,357,791,664 5.63% 2002-03 4,574,521,268 69,971,865 122,697 44,188,829 4,688,804,659 7.60% 2003-04 5,051,058,871 77,407,924 140,122 47,621,182 5,080,985,735 8.36% M. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone Net Assessed Value 6,000,000,000 5,000,000,000 4,000,000,000 3,000,000,000 _ EMIR gg- Ir 2,000,000,000 Sr 1,000,000,000 0 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year M. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone Typical Property Tax Rates (Percent of Assessed Value) 2.0000000 1,7500000 1.5000000 1.2500000 1;0000000 0.7500000 0.5000000 INTO 4� 0.2500000 IN 0.0000000 1994-95 1995-96 1996-97 1997.98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year {� Table 7 City of Diamond Dar �'�`, Property Tax Rates -All Direct and Overlapping Governments (Per$100 of Assessed Valuation) Last Ten Fiscal Years (unaudited) Fiscal General Los Angeles Walnut Valley Walnut Valley L.A County L.A County Metropolitan Year Levy County School District Water District Flood Control Sanitation Water District Total 1994-95 1.0000000 0.0019930 0.0649030 0.0000000 0.0060410 0.0000000 0.0089000 1.0818370 1995-96 1.0000000 0.0018140 0.0089866 0.0000000 0.0009630 0.0000000 0.0089000 1.0206636 1996-97 1.0000000 0.0016040 0.0850380 0.0000000 0.0019910 0.0000000 0.0089000 1.0975330 1997-98 1.0000000 0.0015840 0.1025300 0.0000000 0.0021970 0.0000000 0.0089000 1.1152110 1998-99 1.0000000 0.0014510 0.0694610 0.0000000 0.0019530 0.0000000 0.0089000 1.0817650 1999-00 1.0000000 0.0014220 0.0784890 0.0000000 0.0017650 0.0000000 0.0089000 1.0905760 2000-01 1.0000000 0.0013140 0.0884030 0.0000000 0.0015520 0.0000000 0.0088000 1.1000690 2001-02 1.0000000 0.0011280 0.0916300 0.0000000 0.0004730 0.0000000 0.0077000 1.1009310 2002-03 1.0000000 0.0010330 0.1008580 0.0000000 0.0008810 0.0000000 0.0067000 1.1094720 2003-04 1.0000000 0.0009920 0.0966020 0.0000000 0.0004620 0.0000000 0.0061000 1.1041560 Typical Property Tax Rates (Percent of Assessed Value) 2.0000000 1,7500000 1.5000000 1.2500000 1;0000000 0.7500000 0.5000000 INTO 4� 0.2500000 IN 0.0000000 1994-95 1995-96 1996-97 1997.98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year Note: Property tax rates based on a typical tax rate area. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone {� �'�`, �°t=s��'^�. ' `r Note: Property tax rates based on a typical tax rate area. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone City of Diamond Bar Computation of Legal Debt Margin June 30, 2004 Assessed Valuations: Assessed Value $ 5.033.364.553 Add Back�Exempt Property 47,621,182 Total Assessed Value $ 5080985735 Legal Debt Margin: Debt |imitationn-15%ofTotal Assessed Value* $ 702.147.860 Debt Applicable toLimit Total Bonded Debt O Less: Special Assessment Bonds U Revenue Bonds 13.755.000 Available for Repayment ofGeneral Obligation Bonds O Total Debt Applicable toLimitation O Legal Debt Margin $ 748332860 *Section 43SObofthe California Government Code Source: City Finance Department, Hdl Coren & Cone M. City of Diamond Bar June 30, 2004 Total Gross Direct and Overlapping Bonded Debt 2O03/O4Assessed Valuation: $5.O8O.S85735 Debt toAssessed Valuation Ratios: Direct Debt 0.00Y6 Overlapping Debt 2.38% Total Debt 2.38% Report reflects general obligation debt which isbeing repaid through voter -approved indebtneao. it excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations and certificates ofparticipation. This fund ioaportion ofolarger agency, and ioresponsible for debt inareas outside the city. Source: City Finance Department, Hdl Coren & Cone 990 Gross Bonded 96Applicable Net Bonded Governm Debt Balance To City Debt Los Angeles County Detention Facilities 1S87Debt Svc $23.470,000 0.812 8190`672 LACoFlood Control (Storm Drain Bond No4)DS 5.600.000 0.824 46.121 ima Rood Control Ret Bonds 1993 Debt Service 555 .000 0.824 4,571 *Metropolitan Water District Three Valley Area 1112 447.475.000 0.775 3.488.696 K8tSan Antonio Comm Col Dio2OU1 Ser ADG 28.050.000 13.792 3.992.914 W1tSan Antonio Com Col Dia2OO1 Ser 8O4 75.000.000 11853 10.300.085 Pomona Unified School District 2O02Ser COG 15.000.000 29.233 4.385.008 Pomona Unified School District 2OO2Ser BD8 15.000.000 29.233 4`385.009 Pomona Unified School District Refund Ser iSS7ADG 44.950.000 29233 13`140.411 Pomona Unified GDRefund 2OOOSeries A DobtServio 20.005.000 29.233 5.848.141 Pomona Unified GD18S8Series D Debt Service 8.740.000 29,233 2.847.333 Pomona Unified SDRefunding 2OO1Ser ADebt 8en/io( 21.860.000 29.233 6.380.420 Pomona Unified SD20O2Ser ADebt Service 8.770.000 29.233 2.856.103 Walnut Valley Unified GD2OOOSeries CDS 21.888.114 78.126 16.746.116 Walnut Valley Unified 8ORefund Series 1007AO8 39.392.718 76125 29.887.800 Walnut Valley Unified SO20OOSeries AD8 6.630.000 76.125 5.047.103 Walnut Valley Unified GD2UO0Series BDS 6.710.000 76.125 5.108.003 Walnut Valley Unified SD2OOOSeries CDG 7.945.000 76.125 6048150 Total Gross Direct and Overlapping Bonded Debt 2O03/O4Assessed Valuation: $5.O8O.S85735 Debt toAssessed Valuation Ratios: Direct Debt 0.00Y6 Overlapping Debt 2.38% Total Debt 2.38% Report reflects general obligation debt which isbeing repaid through voter -approved indebtneao. it excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations and certificates ofparticipation. This fund ioaportion ofolarger agency, and ioresponsible for debt inareas outside the city. Source: City Finance Department, Hdl Coren & Cone 990 Table 10 City of Diamond Bar Residential and Commercial Construction and Bank Deposits Last Ten Fiscal Years (unaudited) (1) Includes multiple dwellings Source: City's Contract Building & Safety Provider, Findley Reports 100 New Construction Fiscal Residential (1) Commercial Year Units Value Units Value 1994-95 8 4,619,400 0 0 1995-96 26 16,715,000 0 0 1996-97 15 9,516,000 1 4,300,000 1997-98 66 32,539,000 0 0 1998-99 88 36, 303, 000 5 21, 516, 000 1999-00 28 18,274,000 2 1,706,000 2000-01 92 42,558,001 3 8,431,000 2001-02 73 37,849,631 1 6,621,000 2002-03 16 12,370,771 1 1,733,000 2003-04 15 12,166,000 0 0 Alterations and Additions Fiscal Residential (1) Commercial Year Units Value Units Value 1994-95 487 5,649,500 81 2,454,800 1995-96 651 7,285,100 52 2,460,200 1996-97 595 12,150,400 58 3,826,800 1997-98 639 8,618,400 52 2,453,000 1998-99 751 19,163,240 53 10,099,900 1999-00 632 8,255,650 99 8,324,100 2000-01 716 10,069,605 57 4,614,427 2001-02 784 8,227,250 54 9,737,510 2002-03 847 13,388,981 59 3,022,200 2003-04 877 12,093,300 61 1,914,750 Bank Deposits 6/30/1994 379,581,000 6/30/1995 423,640,000 6/30/1996 480,610,000 6/30/1997 472,071,000 6/30/1998 532,147,000 6/30/1999 557,969,000 6/30/2000 636,590,000 6/30/2001 744,419,000 6/30/2002 898, 305, 000 6/30/2003 1,076,100,000 (1) Includes multiple dwellings Source: City's Contract Building & Safety Provider, Findley Reports 100 Table 11 City of Diamond Bar | Principal Property Taxpayers / June 30, 2004 . � Taxpayer Primary Use 24.877.750 Opus Real Estate California Commercial Gem Gateway Limited Inc. Commercial 1O22South Grand Avenue Apartment Residential Hidden Manna Corporation Commercial Country Hills OB LLC Commercial Bridge Gate Partners LP Commercial Muller Gateway LLC Commercial DanohDiamond Bar LLC Commercial Margaret M. Tam Trust, Et. Al. Commercial Emerald Pointe Apartments LLC Commercial 101 2003-04 Percentage ofTotal Assessed Valuation Net Assessed Valuation $28.335/498 0.559Y6 24.877.750 0493Y6 22.828.277 0,447Y6 21.790.905 0.43096 21.118.272 0A1796 18.465.893 0,304Y6 17.102.423 0.338Y6 15,913.505 031496 15.325.465 0.30296 14.884.980 0.204Y6 200,552,968 3.958% Type of Coverage Liability: General Liability, Automobile Liability, Bodily Injury, Property Damage, Personal Injury. Special Liability: Errors and ommissions, Employment Practices injury, Contractual Liability injury, Broadcast/Publication injury Employee Benefits, Administration injury, Discrimination injury. Pollution & Remediation Legal Liability: Scheduled property, streets, storm drains, approved underground tanks & non -owned disposal sites. Property: All -Risk, including buildings, contents, garaged vehicles, contractor's equip- ment, fine arts, rental income and other miscellaneous extentions of coverage, Automobile: Automobile Physical Damage Crime: Public Employee Blanket Fidelity Bond - Faithful Performance Bond Coverage 'Q' Depositor's Forgery Coverage 'B' Crime- Money & Securities Coverage 'C' Computer Fraud Coverage 'F' Worker's Compensation: Work related injury/illness claims for temporary and permanent disability. Special Events: Tenants/Users for Property damage/bodily injury City of Diamond B »i June (unaudited) Limits/Deductibles $50,000,000 limit each occurrence, $50,000,000 annual aggregate. Retained loss of $30,000 per occurrence. $50,000,000 limit each occurrence, $50,000,000 annual aggregate. Retained loss of $50,000 per occurrence. CJPIA Limit $50,000,000 for 3 years. $10,000,000 per member. Self insur- ed retention $50,000 per occurrence. $100,000,000 per occurence, deductible of $5,000 per occurrence. $100,000,000 per occurence, deductible of $1,000 per occurrence Insurer Self Insured Program/ California Joint Powers Insurance Authority, Self Insured Program/ California Joint Powers Insurance Authority. Self Insured Program/ California Joint Powers Insurance Authority. Robert F. Driver Assoc, Table 12 Policy period 07/l/02 -Until suspended or terminated. 07/l/02 -Until suspended or terminated. 07/01/02-06/30/05 12/31/03-12/31/05 Robert F. Driver Assoc. 12/31/03-12/31/05 $1,000,000 limit, deductible of Robert F. Driver Assoc. 01/01/04-04/01/06 $2,500 per occurrence $1,000,000 limit, deductible of Robert F. Driver Assoc. 01/01/04-04/01/06 $2,500 per occurrence $1,000,000 limit, deductible of Robert F. Driver Assoc. 01/01/04-04/01/06 $2,500 per occurrence $1,000,000 limit, deductible of Robert F. Driver Assoc. 01/01/04-04/01/06 $2,500 per occurrence $50,000 Self Insured Program/ 10/01/03-10/01/05 employers liability incl defending costs. California Joint Powers Insurance Authority. $1,000,000 per occurrence and aggregate per event. $5,000 medical expense limit. Source: City Finance Department 102 Robert F. Driver Assoc. 04/01/04-04/1/06 Table 13 City of o • Bar Demographic anr Miscellaneous Statistical Informatior June 1 2004 (unaudited) Date of Incorporation.........:........................................................................April 18, 1989 Form of Government.................................................................................. Council -Manager Area........................................................................ 14.9 Square miles Milesof Streets...................................................................... 137 Employees(full-time)................................................................................ 51 Employees(part-time).................................................................................. 35 Fire Protection (Los Angeles County Consolidated Fire protection District) Numberof Stations.................................................................................. 3 Numberof Officers................................................................................. 39 Sewers: SanitarySewers............................................................................... 146.88 StormSewers................................................................................. 31.95 Recreation & Culture: CommunityCenters............................................................ I ....... .............. 1 11 Parks................................................................................. . Park Acreage (developed)................................................................................. . 27 Park Acreage (undeveloped........ .......................... .......... ................ 439 Education: Elemantary Schools Middle Schools High Schools Population of past ten years:* Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 ...................................................... 9 .........................................I..........1..... 3 ........................................................................ 2 Population Percentage Increase 54,284 -0.41% 56,003 3.17% 56,659 1.17% 57,271 1.08% 58,300 1.80% 59,100 1.37% 56,287 -4.76% 58,100 3.22% 57,469 -1.09% 59,487 3.51% *Source: State of California, Department of Finance 103 City of Diamond Bar Schedule of Credits Year Ended June 30, 2004 Linda C. Lowry, City Manager David A. Doyle, Deputy City Manager Linda G, Magnuson, Finance Director Conrad and Associates, CP/A,LLP. April Blakey, Public Information Manager Source: City of Diamond Bar 104 Area of Contribution General Overview Letter ofTransmittal Management Discussion & Analysis General Overview Letter ofTransmittal Management Discussion & Analysis General Overview Letter ofTransmittal Management Discussion QAnalysis Statistical Tables Financial Statements Cover and Divider Page Design (This page intentionally left blank)