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HomeMy WebLinkAboutCAFR - FY 1994-95CITY OF DIAMOND BAR Diamond Bar, California I Comprehensive Annual Financial Report Year ended June 30, 1995 Prepared by FINANCE DEPARTMENT (This page intentionally left blank) A CITY OF DIAMOND BAR Comprehensive Annual Financial Report Year ended June .30, 1995 TABLE OF CONTENTS INTRODUCTORY SECI10N: Exhibit Page Table of Contents Letter of Transmittal v Officials of the City of Diamond Bar xiv Organization Chart xv FINANCIAL SECTION: 'Independent Auditor's Report I General Purpose Financial Statements: • Combined Balance Sheet - All Fund Types and Account Groups AA 2 • Combined Statement of Revenues, Expenditures and Changes BB 5 in Fund Balances - All Governmental Fund Types• Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental cc 6 Fund Types • Combined Statement of Revenues, Expenses and Changes DD 8 in Retained Earnings - Proprietary Fund Type Combined Statement o . f Cash Flows - Proprietary Fund Type EE 9 • Notes to Financial Statements 11 Supplemental Data: General Fund: • Comparative Balance Sheet A-1 28 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances A-2 29 e Revenue Detail - Budget and Actual A-3 30 9 Expenditure Detail - Budget and Actual A-4 31 CITY OF DIAMOND BAR Comprehensive Annual Financial Report .(Continued) TABLE OF CONTENTS, (CONTINUED) Exhibit Page Special Revenue Funds: ® Combining Balance Sheet B-1 ® Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 ® Traffic Safety Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-3 ® State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-4 ® Proposition A Transit Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-5 ® Proposition C Transit Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-6 ® Solid Waste Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-7 ® Air Quality Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-8 ® Park Fees Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-9 34 36 38 39 EN 4.1 42 43 44 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS (CONTINUEDI • Proposition A Safe Parks Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Community Development Block Grant Fund: Statement of Revenues, Expenditures and Changes - in Fund Balances - Budget and Actual • Landscape Maintenance Districts Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • AB 821 Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances • Grand Avenue Capital Project Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Traffic Mitigation Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Capital Improvement Fund: Statement of Revenues, Expenditures and Changes i in Fund Balances - Budget and Actual -iii- Exhibit Page B-10 45 B-11 46 B-12 47 B-13 48 C-1 50 C-2 51 C-3 52 C-4 53 C-5 54 CITY OF DIAMOND BAR t, Comprehensive Annual Financial Report (Continued) 1 1 TABLE OF CONTENTS. (CONTINUED) Exhibit Page Agency Fund: e Statement of Changes in Assets and Liabilities. D-1 56 General Fixed Assets Account Group: e Comparative Schedule of General Fixed Assets - by Source E-1 58 e Schedule of General Fixed Assets - by Function and Activity E-2 59 -iv- Table No. STATISTICAL SECTION: General Governmental Expenditures by Function 1 61 General Govenrmental Revenues by Source 2 62 Secured Property Tax Levies and Collections 3 63 Assessed Value of Secured and Unsecured Property 4 64 Property Tax Rates - All Direct and Overlapping Governments 5 65 Principal Taxpayers 6 66 Computation of Legal Debt Margin 7 67 Computation of Direct and Overlapping Debt 8 68 Schedule of Insurance in Force 9 69 Demographic and Miscellaneous Statistical Information 10 70 Residential and Commercial Construction 11 71 Ratio - Unreserved General Fund Balance to Annual General Fund Expenditures 12 72 Schedule of Credits 13 73 -iv- December 4, 1995 WWIjilim '11 All't, 0, 21660 E. Copley Drive, Suite 100 - Diamond Bar, CA 91765-4177 (909) 860-2489 - Fax (909) 861-3117 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, 1995. Responsibility for both the accuracy of the presented data and the completeness and fairness of -the presentation, including all disclosures, rests with the City. We believe the data presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds and account groups; and that all disclosures necessary to enable the reader to gain a full understanding of the City's financial affairs have been included. The Comprehensive Annual Financial Report is presented in three sections; introductory, financial and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principle officials. The financial section includes general purpose financial statements and schedules, the independent auditor's report, and the notes to the financial statements. The statistical section includes selected financial and demographic information on a multi-year basis. In addition to the financial audit, the City is legally required to also conduct an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the US Office of Management and Budget Circular A-128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditor's reports on the internal control structure and compliance with applicable laws and regulations, are not included with this report and are issued as a separate document. -v- Recycled paper REPORTING 1 ITS SERVICES This Comprehensive Annual Financial Report includes all funds and accountou the City. The City directly provides a limited range of services and contracts forseveral v 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, recreation services, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staffprovided services include t customer service, community development (which includes planning, building and safety management, and code enforcement), public works (which includes engineering, capital projects administration, street maintenance contract management, traffic and transportation matters, engineering contract management, and subsidized transit ticket sales), community services (which includes senior services, park maintenance, recreation contract management and landscape maintenance), economic development, community relations, grant administration, financial management and administrative management. Allof these activities are included in this report. Fire protection is provided by the Los Angeles County Fire District 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. ' 1 1 1 t 1 11 .� Located at the junction of the 57 and 60 freeways, the City of Diamond Bar is at the hub of the Los Angeles basin transportation network. A twenty-five mile radius encompasses Pasadena, downtown Los Angeles, Long Beach, Irvine and Riverside. Diamond Bar is a relatively young residential community of about 56,000, situated among the meandering hills and valleys of Brea Canyon. Many desired services can be found in Diamond Bar's shopping and business centers. Recreational opportunities ! within the City include more than 80 acres of park facilities and an 18 hole public golf course. During the past few years, the City of Diamond Bar has been affected as have many other areas of southern California by a general down turn in the economy. This past year the economy has seen a slight rebound. This has been reflected in Diamond Bar, in the building and sales of exclusive, upscale single-family homes. As the economy continues to improve, it is anticipated that vacancies which exist in commercial areas should be significantly reduced through business retention and attraction activities. TIT To help the City capitalize on the rebounding economy, the City's newly adopted General Plan requires the creation of an Economic Development Strategic Plan. This plan will concentrate on a variety of methods to enhance the City's revenue base. MAJOR INITIATIVES For the Year. In the FY94-95 budget, the City of Diamond Bar identified .several major programs and projects necessary to meet increased service levels and to prepare the City for the future requirements of its residents. The following is a list of the significant activities which were accomplished this fiscal year. The largest project completed this year was the reconstruction and rehabilitation of Diamond Bar Boulevard which is one of the major thoroughfares in the City . The section improved was an approximate two mile stretch from Brea Canyon Road to Grand Avenue. The project was unique because it took an environmental approach by using recycled old pavement for the road base and recycled rubber and asphalt for the surface. The Golden Springs Drive Landscape Medians Project was completed this. year. New. medians were installed from the westerly city limits to Lemon Avenue. As part of the City's plan for a uniform entry theme, the medians were constructed and landscaped to match median work which has been previously installed on other portions of Golden Springs Drive. Transportation and traffic have been major sources of concern for the City. This year the City implemented two programs in an effort to address these concerns and to serve its citizens. The first program implemented by the City Council was the transit subsidy program. This program offer's a 20% to 50% discount to citizens on transit passes for Foothill Transit, Metrolink, and the MTA. The other extremely popular program implemented by the City is the Dial -a -Cab program which offers senior and handicapped citizens taxicab transportation at a nominal rate. Both of these programs have been funded by Proposition A Transit Funds. The City has implemented an ongoing traffic signal program, which is designed to place signals at several warranted locations throughout the community. Traffic signals installed this year include Diamond Bar Boulevard at the intersections of Fountain Springs and Shadow Canyon, and Golden Springs at the intersections of Prospectors, Golden Prados, & Carpio. Faced by funding cuts and decreased hours of operation at the Diamond Bar Los Angeles County Library Branch, the City Council voted to provide funding to the library in an effort to maintain service levels. The City funded two additional days of service per week and identified materials which were to be purchased and used specifically by the Diamond Bar branch of the County Library. -VU- For the Future - The accompanying financial statements reflect an excellent financial condition. This has been accomplished through a combination of sound leadership and management; and a conservative financial approach. Reserves have been built in anticipation of a funding loss which is anticipated to occur in FY97-98. The City has received State subventions based upon an incorporation population of 74,115. By law, starting in FY97-98, these subventions will be based on the actual population which is estimated to be 56,000. The estimated loss in the General Fund revenue could be as much as $800,000 and the loss in Gas Tax revenue could be as much as $300,000. While programs to retain, attract and assist businesses in existing commercial areas are beneficial, full occupancy in those commercial areas are not going to significantly expand revenue as compared to the projected revenue shortfall. Comparative revenue expansion, in the form of new retail commercial development is being seriously considered. It is anticipated that the revenue shortfall will be primarily closed through revenue expansion policies and not solely through service reduction policies. Fiscal Year. 1995-96 budget has addressed the issue of economic development by allocating 100,000 to fund economic development activities, which would include a feasibility study of a potential redevelopment agency which may further increase economic growth opportunities within the City. 121 Q W4100) Internal Control Structures Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; (2) the valuation of costs and benefits requires estimates and judgements by management. Budgetary Controls The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Capital Projects Funds and Internal Service Funds are included in the annual appropriated budget. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established by function and activity within an -individual fund. The City also maintains an encumbrance accounting system as on technique of budgetary control. Encumbered amounts lapse at year-end. However, some encumbrances may be reappropriated as a part of the following year's budget. As demonstrated by the statements and schedules included in the Financial section of this Report, the City meets its responsibility for sound financial management. Accounting System The City's accounting records for general government operations are maintained on a modified accrual basis. Accordingly, revenues are recognized when measurable and available, and expenditures are recognized when goods and services are received. Accounting for the City's internal service operations are maintained on the accrual basis. In addition, the City maintains a General Fixed Assets Account Group to account for fixed assets acquired by the City which are not a part of the internal service funds. The City also maintains a General Long Term Debt Account Group to record the City's long term debt obligations including accumulated employee vacation and sick time. General Government Functions The following schedule presents a summary of general fund, special revenue funds, and capital projects funds, fund revenues for the fiscal year ended June 30, 1995 and the amount and percentage of increases or decreases in relation to prior year revenues. INCREASE PERCENT REVENUES AMOUNT PERCENT OF TOTAL (DECREASE) FROM 1993-94 INCREASE (DECREASE) Taxes $4,964,207 37.56% $(17,028) -0.34% Special Assessments 476,148 3.60% (22,882) -4.81% Licenses, Permits & Fees 881,588 6.67% (74,247) -8.42% Intergovernmental 5,640,400 42.68% 131,354 2.33% Fines and Forfeitures 253,824 1.92% 66,394 26.16% Charges for Services 210,136 1.59% 130,521 62.11% Interest 732,693 5.54% 266,484 36.37% Other Revenue 56,399 0.43% 18,027 31.96% TOTAL $13,215.395 100.00% $498.623 The largest revenue source for the City is intergovernmental revenue. This- category increased this fiscal year primarily due to the exchange of Proposition A Transit funds with another city for general fund revenues. The funds received, $207,000, have been reserved or used in providing funding to the City's County Library branch. In addition, this fiscal year the City received $116,100 in State grant funds for the improvements I made to Diamond Bar Boulevard. i Interest revenues increased due to the general increase in the City's cash balances. At the end of FY93-94, the City's investable cash balancesvere $12,469,428 by the end of FY94-95, the balance had increased to $14,960,154. This is an increase of $2,490,726. FY94-95, the balance had increased to $14,960,154. This is an increase of $2,490,726. This in addition to higher investment yields contributed to this substantial increase in interest revenue. Fines and Forfeiture Revenue increased significantly due to a full year's implementation of the recovery of false alarm fees. Additionally, an increased enforcement of parking regulations and parking fine collection resulted in an increase in parking fine revenue of $39,647 or 82%. The decrease in Licenses, Permits, and Fees revenue during fiscal year 1994-1995 reflects the relatively flat economy of southern California. In fiscal year 1993-94, the City processed two multifamily residential development projects. These projects consisted of a 32 unit condominium complex and a 54 unit apartment/condominium conversion project. Building permits were issued in the latter part of fiscal year 1993-94 for both projects. The level of new single family residential activity has remained consistent for the past two years. Commercial and industrial development and permit activity, has remained low. The condominium projects referenced during fiscal year 1993- 94 created a Building Permit revenue which was higher than normal. The following schedule presents a summary of general funds, special revenue funds, and capital projects funds expenditures for the fiscal year ended June 30, 1995 and the amount and percentage of increases and decreases in relation to prior years expenditures. INCREASE PERCENT EXPENDITURES AMOUNT PERCENT OF TOTAL (DECREASE) FROM 1993-94 INCREASE (DECREASE) General Government $1,922,452 16.08% (533,604) -27.76% Public Safety 4,099,515 34.29% 279,791 6.82% Highways and Streets 1,608,178 13.45% 1,608,178 100.00% Public Works 2,678,261 22.40% 367,948 13.74% Community Development 347,710 2.91% 347,710 100.00% Parks, Recreation & Culture 1,072,288 8.97% 95,331 8.89% Capital Outlay 117,889 .99% (1,520,520) -1289.79% Debt Service 108,780 0.91% (456,010) -419.20% TOTAL $119-55-073 100.00% 188.824 Expenditures for the 1993-94 fiscal year were $11,766,249 as compared with $11,955,073 for the 1994-95 fiscal year, an increase of $188,824, or 1.6 percent. Included within the General Government category is the City Attorney contract services. During the previous fiscal years, the City had been involved in several lawsuits. Fiscal year 1993-94, saw the settlement and dismissal of most of the litigation to which the City had been a party. As a result, City Attorney costs in fiscal year 1994-95 were $132,500, a reduction of $272,500 from fiscal year 93-94. a The City contracts with the Los Angeles County Sheriffs Department for police services. The rates for these contract services increased by 2.1% from FY93-94 to FY94-95. This accounts for most of the increase in Public Safety expenditures in FY94-95. This fiscal year the City implemented the Community Volunteer Patrol to supplement sheriffs department activities. A 10% increase in the cost of animal control services which are provided by the Pomona Valley Humane Society was another component of the increase in Public Safety increases in the year.. In fiscal year 1993-94, the City and the County of Los Angeles settled a property tax allocation lawsuit. Part of this lawsuit stated that the City should not pay for services rendered (in FY88-89) by the County. This was due to the fact that the County didn't remit revenues due the City for the same time period. The debt for the contract services was forgiven as a part of the lawsuit settlement. Since this was a one time reduction in the City's debt, this fiscal year's debt service requirement was much less. This fiscal year, the City made its third payment of $100,000 plus interest for the lease purchase . agreement with the Walnut Valley Water District for land. Previously, the City had recorded all capital improvement projects within the Capital Outlay category. This fiscal year street and highway improvements have been segregated. This year the City completed one of its largest capital improvement projects to date. This was the rehabilitation of Diamond Bar Boulevard at a cost of $1,237,293. Fund Balances The General Fund ended the 1994-95 fiscal year with a fund balance of $8,178,014. This an increase of $1,294,252 or approximately an 18.8% increase from the balance at June 30, 1994. Of this, $309,666 is reserved for encumbrances, debt service and special programs. In addition, there is $156,894 designated for library service enhancement. This leaves an undesignated fund balance of $7,711,454. Agency Fund The agency fund accounts for assets held by the City as trustee or agent. The City presently has a deferred compensation fund which is set up to account for contributions for employee participation in an income deferral program. Cash Management The City invests temporarily idle funds in accordance with the Government Code and the investment policy approved by the City Council. During FY94-95, funds were invested in the Local Agency Investment Fund, which is administered by the State Treasurer's Office. The City manages all of its cash and investments on a pooled basis with the exception of the Deferred Compensation Funds which are managed by the appointed fiscal agents. Interest earnings are allocated to the various funds based on their share of cash and investment balances. The average yield on investments managed by the City was 5.52%o. 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 was computed as part of an actuarial valuation performed as of June 30, 1994. Neither an actuarial nor an annual update as of June 30, 1995 is available at this time. The total over -funded pension obligation applicable to the City employees was $190,116. The City's contribution to the system based on actuarially determined requirements was $161,644 for FY9445. For the three years ended June 30, 1993, 1994 and 1995, the total contribution to PERS was 13.68%, 13.34%, and 13.31%, respectively, of the annual covered payroll. The total contribution paid by the City included employer contributions as well as member contribution for which the City is contractually obligated to pay on behalf of its employees. Debt Administration As of June 30, 1995, the City of Diamond Bar had no outstanding general obligation bonds. In July 1992, the City entered into a land lease purchase agreement with the Walnut Valley Water District. The term of the lease is four annual payments of $100,000 plus interest with the option to buy at the end of the lease for $1. During FY94-95, the third of the four payments was made. The total paid was $108,780 from General Fund Reserves. In fiscal year 1994-95, the City entered into a lease agreement for financing the acquisition of a telephone system in the amouaof $22,356 to be paid in sixty monthly installments ending in March 2000. Risk Management The City of Diamond Bar is a member of the Southern California Joint Powers Insurance Authority (SCJPIA) for the purpose of pooling its general liability losses and claims with the approximately 78 other member cities. Each member city retains the first $20,000 of each claim. Claims above $20,000 are shared by all the member cities up to a maximum of $10,000,000 per occurrence. 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 SCJPIA. The City Council established a policy of annually transferring $100,000 to the fund to create a self-insurance reserve. When the reserve reaches $1,000,000, the reserves will be deemed to be sufficient. The self insurance reserve at June 30, 1995 was $649,314. 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, for its expertise and advice in the preparation of the City's first -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, Terrence L. Belanger City Manager OFFICIALS OF THE CITY OF DIAMOND BAR __June_3.0,_1995 CITY COUNCIL Phyllis E. Papen, Mayor Gary H. Werner, Mayor Pro Tern Eileen R. Ansari, Councilmember Clair W. Harmony, Councilmember CITY OFFICIALS Terrence L. Belanger, City Manager Frank M. Usher, Assistant City Manager Michael Jenkins, City Attorney Lynda Burgess, City Clerk James DeStefano, Community Development Director . Bob Rose, Community Services Director George A. Wentz, PublicWorks Director/City Engineer David G. Liu, Deputy Director of Public Works Linda G. Magnuson, Accounting Manager -xiv- T V N Cc: c N CD .-0c - W co co U � u 49 u 0 U N U r Q L �Lr . ® V mo U U ro on w a- N 'G 91 w w N � N y� W 4c • '> L O _ L w 2 N U y � � o U �V) V U W �. .= o � o ,E a) (U 5 >1 C = U QE i.+ L cua U %4- 0 >. • a E W > W JE cn U ua2! uC C 00 E0 cu 0 0— U m U w c9 GL O (This page intentionally left blank) l t f. CERTIFIED PUBLIC ACCOUNTANTS i 4ASSOCIATES , L.L.P. IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474"2020 The Honorable Mayor and City Council City of Diamond Bar Diamond Bar, California Independent Auditors' Report We have audited the accompanying general purpose financial statements of the City of Diamond Bar, California as of and for the year ended June 30, 1995, as listed in the table of contents. These general purpose financial statements are the responsibility of .the management of the City of Diamond Bar, California. Our responsibility is. to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." 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 opinion. In our opinion, the aforementioned general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City. of Diamond Bar, California as of June 30, 1995, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Stand issued by the Comptroller General of'the United States, we have also issued a report dated September 1, 1995 on our consideration of the City's internal control structure and a report dated September 1, 1995 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Diamond Bar, California. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The scope of our audit did not include the supplemental statistical schedules listed in the table of contents and we do not express an opinion on them. ,.,-'Nw4 td/.4. September 1, 1995 -1- MEMBERS OF AICPA AND.CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CITY OF DIAMOND BAR Combined Balance Sheet - All Fund Types and Account Groups t June 30, 1995 l Proprietary Governmental Fund Types Fund Types Special Capital Internal i General Revenue Projects Service t Assets and other debits Assets: Cash and investments (note 2) $7,967,594 5,972,660 540,435 479,465' Accounts receivable 181,919 3,210 - - Interest receivable 217,738 - Due from other funds (note 9) 142,193 60,686 539,031 - Due from other governments 1,266,036 334,575 - - Prepaid expenses - - - 169,849 Fixed assets (note 3) - - - - Other debits: Amount to be provided for retirement of general long-term debt - - - - Total assets and other debits $9.775.480 .371.131 x,079.466 644,314. Liabilities equity and other credits �. Liabilities: Accounts payable $1,152,678 119,593 386,387 - Accrued expenses 62,922. 3,298 310 - Retentions payable 6,659 2,098 161,031 - Deferred revenue 112,723 - - - 'Due to other funds (note 9) 10,991 729;694 1,225 - { Deposits 251,493 - - - Compensated absences payable (note 4) - - - - Lease payable (notes 4 and 5) - - - - Deferred compensation payable (note 7) - - - - Total liabilities 1,597,466 854,683 548.953. - Equity and other credits: Investment in general fixed assets - - - - Retained earnings: Reserved - - - 169,849 Unreserved - - - 479,465 Fund balances (note 6):. Reserved for. Debt service 225,687 - - - Encumbrances 78,979 440,284 395,061 - Specific projects and programs .5,000 349,772 135,452 - Unreserved: Designated for: Specfic projects and programs 156,894 4,726,392 Undesignated 7,711,454 - - - Total equity and other credits 8,178,014 5,516,448 530,513 649.314 Total liabilities, equity and other credits $9.775.480 6.371,31 1.079,46614 See accompanying notes to the financial statements. -2- Fiduciary Fund Type A enc 325,131 325.131 325,131. Account Groups General General Fixed Asset Lona -Term Debt 4,084,540 4,084,540 4,084..540 ��� 225.687 225.6$7- 103,922 121,765 225.687 -3- 225,681 Exhibit AA Totals (Memorandum Only) 1995 1994 15,285,285 12,703,441 185,129 133,514 217,738 135,950 741,910 150,118 1,600,611 2,326,958 169,849 163,416 4,084,540 4,007,664 225,687 289.384 22.510.749 19,91 ,445 1,658,658 1,239,661 66,530 106,977 169,788 - 112,723 - 741,910 150,118 251,493 105,129 103,922 89,384 121,765 200,000 325,131 234.013 3 551.920 2,125,282 4,084,540 4,007.664 169.,849 575,732 479,465 - 225,687 289,384 914,324 289,333 490,224 .405.137 4,883,286 823;605 7,711,454 11.324j 18 958.829 17.785.14 22,510,749 12.910_$aS (This page intentionally left blank) MIM Exhibit BB CITY OF DIAMOND BAR Combined Statement of Revenues, Expenditures and Changes in. Fund Balances - All Governmental Fund Types Year ended June 30, 1995 r Expenditures: General government Public safety Highways and streets Public works Community development j Parks; recreation and culture Capital outlay Debt service: 1 Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of capital lease 1,922,452 - - 1,922;452 2,456,056 4,099,515 - - 4,099,515 3,819,724 327,168 1,281,010 1,608,178 - 1,123,633 701,265 853,363 2,678,261 2,310,313 - 111,141. 236,569 347,710 - 1,027,979 44,309 67,884 8,712 8,241,463 1,192,595 1,072,288 97.6,957 41,293 117,889 1,638,409 100,000 100,000 550,000 8,780 8.780 14,790 2,521, 11 955.073 11 766.249 905,389 2 691.503 (2,336,. 1,260,322 950,523 750,186 10,992 2,332,488 3,093,666 1,520,722 (383,679) (2,969,457) - (3,323,136) (1,668,117) 22.356 - - - Total other financing sources (uses) 388,863 (2,958.4 2,332,488 (237.114) (147,395) Excess (deficiency) of I revenues over expenditures and other financing sources (uses) 1,294,252 (266,962) (4,082) 1,.023,208 803,128 Fund balances at beginning of year 6,883,762 5,783,410 534.595 13 201.767 12 398.639 Fund balances at end of year $8.178,014.516.4.4 -�M 14,224 975 13,201.767 See accompanying notes to the financial statements. (_ -5- Totals Special Capital (Memorandum Only General Revenue Projects 1995 1994 Revenues: $4,964,207 - - 4,964,207 4,981,235 Taxes Special assessments - 748,198 476,148 74,190 - 59,200 476,148 881,588 499,030 955,835 Licenses, permits and fees Intergovernmental 2,859,755 2,664,545 .116_100 5,640,400 5,509,046 Fines and forfeits 130,253 - 123,571 210,136 253,824 210,136 187,430 79,615 Charges for services 393,439 330,109 9,145 732,693 466,209. Interest 51,000 5.399 - 56,399 38.372 Other revenue Total revenues 9,146.85 3 884,098 184:445 13.215,, 12,716.772 r Expenditures: General government Public safety Highways and streets Public works Community development j Parks; recreation and culture Capital outlay Debt service: 1 Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of capital lease 1,922,452 - - 1,922;452 2,456,056 4,099,515 - - 4,099,515 3,819,724 327,168 1,281,010 1,608,178 - 1,123,633 701,265 853,363 2,678,261 2,310,313 - 111,141. 236,569 347,710 - 1,027,979 44,309 67,884 8,712 8,241,463 1,192,595 1,072,288 97.6,957 41,293 117,889 1,638,409 100,000 100,000 550,000 8,780 8.780 14,790 2,521, 11 955.073 11 766.249 905,389 2 691.503 (2,336,. 1,260,322 950,523 750,186 10,992 2,332,488 3,093,666 1,520,722 (383,679) (2,969,457) - (3,323,136) (1,668,117) 22.356 - - - Total other financing sources (uses) 388,863 (2,958.4 2,332,488 (237.114) (147,395) Excess (deficiency) of I revenues over expenditures and other financing sources (uses) 1,294,252 (266,962) (4,082) 1,.023,208 803,128 Fund balances at beginning of year 6,883,762 5,783,410 534.595 13 201.767 12 398.639 Fund balances at end of year $8.178,014.516.4.4 -�M 14,224 975 13,201.767 See accompanying notes to the financial statements. (_ -5- X I VAli�11 i,' a Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual All Governmental Fund Types Year ended June 30, 1995 Revenues: Taxes Special assessments Licenses, permits and fees Intergovernmental Fines and forfeits' Charges for services Interest Other revenues Total revenues Expenditures: General government Public safety Highways and streets Public works Community development Parks, recreation and culture Capital outlay Debt service: Principal Interest Total expenditures 'Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of capital lease Total other financing sources (uses) General 2,122,865 1,922,452 200,413 4,143,130 4,099,515 43,615 1,395,974 1,123,633 272,341 1,243,805 1,027,979 215,826 93,735 67,884 25,851 8,999,509 8,241,463 758,046 617,791 905,389 287.,598 767,915 750,186 (17,729) (383,416) (383,679) (263) 22,356 22,356 384,499 388,863 4,364 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,002,290 1,294,252 291,962 Fund balances at beginning of year 6,883,762 6,883,762 Fund balances at end of.year $7,886,052 - 8,178.014 291.92 See accompanying notes to the financial statements. -6- Variance Favorable Budget Actual (Unfavorable) $5,751,000 4,964,207 (786,193) 771,100 748,198 (22,902) 2,657,700 2,859,755 202,055 124,000 130,253 6,253' 280,000 393,439 113,439 33,500 51,000 17,500 9,617,360 9,146,852 (470,448) 2,122,865 1,922,452 200,413 4,143,130 4,099,515 43,615 1,395,974 1,123,633 272,341 1,243,805 1,027,979 215,826 93,735 67,884 25,851 8,999,509 8,241,463 758,046 617,791 905,389 287.,598 767,915 750,186 (17,729) (383,416) (383,679) (263) 22,356 22,356 384,499 388,863 4,364 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,002,290 1,294,252 291,962 Fund balances at beginning of year 6,883,762 6,883,762 Fund balances at end of.year $7,886,052 - 8,178.014 291.92 See accompanying notes to the financial statements. -6- I Budget | Actu -- avorable-I Budget Actual. (Unfavorable) 478,966 ` 93 OOO 4�6 I48 , 74 lgO ` (2,0I0) `0 8lO' (18,810) ,l , ) - G5 �0O , - 59 3OO , - (6,300) | ` � 4,@6O,5O6 3,664,545 (2,Iq5,96l,) 116,100 116 ,100 - 75,008 - 123,571 48,571 - - - | | 27!�OUO " l�Q 03O ` �I�,l3� 33� l09 , (65,864) `�I 259' l ~~`~~^ - - - 9 I4� , - 9 l45 , _ ,3�9 ___-�= _ _ ______� _____ � ________ (2,068,) 181,600 184A45 2,845 � 3IO OO� 3Z7 l60 ` (l7,I60 `' ��727,3OI I,301,010 446,291 " 687,650 70I �G� ` �3 ( ,6l�) -- �I3 467 2, , 0�� 3G� , l 76O 104 " ^ / ` 151,230 111,141 40,089 549 �lO , 236 569 , 3�� , 94l / 122,000 l6`079 � , .44 ,309 0`7I� ' 77,691 �,l67 - I,92O,293 - 4l,293 - I,gI6,l0O | | - - _ 100,000 lOO - - 8^780 8,-�80 ` � | 4,664,563 2,691.,503 \ ( , ( l `1��=1��L��. (2,336, \ ��u ���}}". 10,992 10,992 6,025,920 2,332,480 (3,693.440) ` (6,446,260) (2,969,457) 3,476,803 - ^ - - ( ) � | �.' (2,958.46\ 3"487,795 6,1� ��2,332,..488(3,693,440)�� | | \ | '^ (1, 781,697) (266,962) �1,5I4,735 (7II,023) (4,002) 787,74l | | � � | =~=-�~-� - __5J4^��� -----�--- --53t�595 -------- � 1,514.7 (177,2 53 ..Sn .~m | � ' | -7- Exhibit DD CITY OF DIAMOND BAR Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type Year ended June 30, 1995 Retained earnings at end of year See accompanying notes to the financial statements. -8- Internal Service 1995 1994 Operating expenses: Insurance premiums $208,467 89,000 Total operating expenses 208,467 89,000 Operating income (loss) (208,467) (89,000) Nonoperating revenues (expenses): Nonoperating revenues: Interest revenue 22,579 16,682 Total nonoperating revenues (expenses). 22,579 16,682 Income (loss) before operating transfers (185,888) (72,318) Transfer from other funds: General fund 259,470 187,395 Net income 73,582 115,077 Retained earnings at beginning of year .575,732 460,655 Retained earnings at end of year See accompanying notes to the financial statements. -8- Exhibit EE CITY OF DIAMOND BAR Combined Statement of Cash Flows - Proprietary Fund Type Year ended June 30, 1995 Internal Service 1995 1994 Cash flows from operating activities: Insurance payments $(214,900) (252,416) Net cash provided by (used for) operating activities 214 900) -(252,416) Cash flows from noncapital financing activities: Transfer from other fund 259,470 187,395 Net cash provided by non -capital financing activities 259,470 187,395 Cash flows from investing activities: Interest earned on investments 22,579 16,682 Net cash provided by investing activities 22,579 16,682 Net increase (decrease) in cash and cash equivalents 67,149 (48,339) Cash and cash equivalents at beginning of year 412,316 460,655 Cash and cash equivalents'at end of year $479,465 412,316 Reconciliation of net operating income to net cash provided by (used for) operating activities: Operating income (loss) 208,467) (89,000) Adjustments to reconcile operating income to net cash provided by (used for) operating activities: Increase in prepaid insurance - (163,416) Decrease in accounts payable (6,433) Net cash provided by (used for) operating activities $(24,900) (�) See accompanying notes to the financial statements. i -9- (This page intentionally left blank) -10- CITY OF DIAMOND BAR Notes to Financial Statements Year ended June 30, 1995 (1) Summary of Significant Accounting Policies (a) Description of the Reporting Entit The City of Diamond Bar was incorporated April 18, 1989 under the general laws of the State of California. The City operates under the Council - Manager form of government and provides the following services as authorized by its general laws: Public Safety (police), Highways and Streets, Park Facilities, Public Improvements, Community Development (planning, building, zoning) and General Administrative Services. As required by generally accepted accounting principles, these financial statements present only the City of Diamond Bar, which has no component units. 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 improve 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. (b) Fund Accounting The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity h a self -balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities. with segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accounting records of the City are organized on the basis of. funds and account groups classified for reporting purposes as follows: GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. Expenditures of this fund include the general operating expenses and capital improvement costs which are not paid through other funds. -11- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) Summary of Significant Accounting Policies, (Continued) Special Revenue Funds The Special Revenue Funds are used to account for proceeds of specific revenue sources that are restricted by law or administrative action for specific purposes. Capital Project Funds Capital Project Funds are used to account for financial resources to be used for the acquisition, construction or improvements of major capital facilities and infrastructure. PROPRIETARY FUNDS Internal Service Fund The Internal Service Fund is used to account for goods and services provided by one department to other departments on a cost reimbursement basis. FIDUCIARY FUNDS Agency Funds Agency Funds are custodial in nature and account for assets that the City holds for others in an agency capacity. ACCOUNT GROUPS General Fixed Assets Account Group The General Fixed Assets Account Group is used to account for the costs of fixed assets acquired to perform general government functions. Assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the general fixed assets account group. Contributed fixed assets are recorded in general fixed assets at fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of future lease payments. -12- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) 11 Summary of Significant Accounting�Policies (Continued Fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. No depreciation has been.provided on general fixed assets. General Lone Term Debt Account Grouu The General Long -Term Debt Account Group is used to account for all long-term debt of the City, except that accounted for in the proprietary funds. (c) Measurement Focus and Basis of Accounting Governmental (general, special revenue, and capital projects) fund types are accounted for on a "spending" measurement focus. Accordingly, only current assets and current liabilities are included on their balance sheets. The reported fund balance provides an indication of available, spendable resources. Operating statements for governmental fund types report increases (revenues) and decreases (expenditures) in available spendable resources. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The modified accrual basis of accounting is followed by the governmental and agency funds. Under the modified accrual basis of accounting, revenues are susceptible to accrual when they become both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long-term debt, are recorded when a current liability is incurred. Liabilities are considered current when they are normally expected to be liquidated with expendable available financial resources. Taxes, subventions, entitlements, and taxpayer -assessed tax revenues held at year-end by an intermediary collecting government are recognized as revenue under the modified accrual basis of accounting. Reimbursement grant revenues are recognized when the related expenditures are incurred: Revenues from the use of money and property are recorded when earned. Licenses, permits, fines, forfeitures, charges for services, and miscellaneous revenues are recorded as governmental fund revenues when received in cash because they are generally not measurable until actually received. -13- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (d) Budgetary tory Data The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department. Revisions that alter the total appropriations of any department or fund and adjustments greater than $10,000 are approved by City Council. Prior year appropriations lapse unless they are reappropriated through the formal budget process. Expenditures may not legally exceed appropriations at the fund level. During the year, there were supplemental budgetary appropriations amounting to $924,607. (e) Interfund Transfers Nonrecurring transfers of equity between funds are reported as an adjustment to beginning fund balance. Operating transfers are reported as other sources and uses of funds in the statement of revenues, expenditures, and changes in fund balance. (f) 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 formal 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. (g) Investments Investments are valued at cost. An estimated loss is accrued for an impairment of investment market value when it is probable that the loss will become realized and the amount of loss can be reasonably estimated. (h) 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. -14- z CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (i) Due from Other Governments The amounts recorded as a receivable due from other governments include sales taxes, property taxes, and grant revenues, collected or provided by Federal, State, County, and City Governments and unremitted to the City as of June 30, 1995. The County of Los Angeles assesses, bills, and collects property taxes for the City. (j) Employee Leave Benefits 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. (k) Claims and Judgments The City records a liability for material litigation, judgments, and claims (including incurred but not reported losses) when it is probable that an asset has been impaired or a material liability has been incurred prior to year end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. (1) Capital Projects Capital projects expenditures include public domain or infrastructure projects which are not capitalized as additions to general fixed assets. (m) Postemplovment Benefits The City does not provide postemployment benefits (other than pension benefits) for its employees. (n) Property Tax Calendar The County of Los Angeles assesses, levies, and collects property taxes for the City. Property taxes levied for the year ended June 30, 1995 were due and payable in two installments on November 1, 1994 and February 1, 1995 and became delinquent on December 10; 1994 and April 10, 1995, respectively. -15- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) (o) Fixed Assets Fixed assets are not capitalized in the funds used to acquire or construct them. Instead,. capital acquisition and construction are reflected as expenditures in governmental funds, and 'ihe related assets are reported in the'-gerieral fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the government. Assets in the general fixed assets account group are not depreciated. (p) Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. Certain minor reclassifications of prior year data have been made in order to enhance their comparability with current year figures. (q) Memorandum Only Totals Columns in the accompanying financial statements captioned "Totals (Memorandum Only)" are not necessary for a fair presentation of the financial statements in accordance with generally accepted accounting principles, but are presented as additional analytical data. Interfund balances and transactions have not been eliminated and the columns do not present consolidated financial information. (2) Cash and Investments Cash and investments held by the City at June 30, 1995 consisted of the following: Petty cash Deposits Investments Total -16- Carrvina Amount $ 675 192,775 15.091,835 15.285.285 CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (2) Cash and Investments (Continued) The City is generally authorized under Section 53601 of the California Government Code and the City's investment policy to invest in the following types of investments: Demand deposits with financial institutions Savings accounts Certificates of deposit U.S. Treasury Securities Bankers' acceptances Commercial paper California Local Agency Investment Fund Repurchase Agreements Deferred compensation investments held it include investments legally, authorized for funds. a fiduciary capacity for City employees the City as well as investments in mutual 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. Deposits of cities and other state or local governments are classified in three categories to give an indication of the level of credit risk assumed by the City. 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 institutions 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 or 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. Category Bank Carrying Form of Deposit 1 2 3 Balance Amount Demand deposits $100.000 140.482 = 240.482 192,775 Total deposits $100,900 4 — 240.4 192, -17- Notes to Financial Statements (Continued) (2) Cash and Investments. (Continued) The investments below are not classified by custodial risk because they do not represent a direct investment in securities. Mutual Funds - deferred compensation Local Agency Investment Fund Total investments Carrying Market Amount Value $ 325,131 325,131 14,766,704 14,904,404 15.091.835 151229,535 At June 30, 1995 the management of the State of California Pooled Money Investment Account generally referred to as LAIF has calculated the market value of LAIF to be $27,116,056,206. The City's proportionate share of that value is $14,904,404. Included in LAIF's investment portfolio are certain market risk senstive investments including Federal Agency and Corporate and Federal Agency Asset and Mortgage backed pools and collateralized mortgage obligations. Information related to LAIF's exposure to credit and legal risk is not available. (3) Fixed Assets A summary of changes in general fixed assets follows: Balance at Balance at July 1. 1994 Additions Retirements June 30, 1995 Land $1,961,615 - - 1,961,615 Buildings 854,908 4,438 - 859,346 Improvements 579,301 - - 579,301 Vehicles and equipment 456,779 49,065 3,210 502,634 Furniture and fixtures 155,061 27,292 709 181.644 Total 00:�4,084, -18- CITY OF DIAMOND, BAR Notes to Financial Statements (Continued) (4) General Long -Term, Debt Changes in general long-term debt for the year ended June 30, 1995 were as follows: Balance at Balance at July 1,,1994 Additions Retirements June 30,_199 Compensated absences $ 89,384 14,538 - 103,922 payable obligations under capital lease 200.000 22.3.56 100,52-1 121,765 Total 36,82-4 22S.687 (5) Obligations Under Capital Leases Reservoir Site The City has entered into a lease agreement as lessee for financing the acquisition of a reservoir site in the amount of $400,000. Payments of principal and interest are payable in annual installments commencing July 1, 1992. The, interest payments are based on the average annual percentage interest paid on public investments made through the Local Agency Investment Fund of the State of California. Telephone System The City has entered into a lease agreement as lessee for financing the acquisition of a telephone system in the amount of $22,356 to be paid in sixty monthly installments ending in March 2000. The balance to be paid is $27,074 including $5j309 in interest. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the inception date in the general fixed assets account group.. Payments of principal and interest are made from the General Fund. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 1995 were as follows: Year Ending Reservoir Site Telephone System Tota June 30. $104,930 5,601 110,531 1996 - 5,601 5,601 19975,601 5,601 1998 5,601 5,601 1999 4.670 4,670 2000 Total minimum lease payments — 104,930 27,074 132,004 Less amount representing interest (4,93 (5,309) 1(0.239) Present value of minimum lease payments . UK = 21,765 121,M -19- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (6) Reserves and Designation of Fund Equity The City established "reserves" of fund equity to segregate fund balances which are not appropriable for expenditure in future periods, or which are legally set aside for specific future use. Fund "designations" also may be established to indicate tentative plans for financial resource utilization in future periods. Fund balances at June 30, 1995 consisted of the following reserves and designations (7) Deferred Compensation The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. As of� June 30,' 1995, the deferred compensation liability included in an Agency Fund was $325,131 carried at market value. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights, are solely the property and rights of the City, subject only to the claims of the. City's general creditors. Because the City handles these funds in a fiduciary capacity, the Deferred Compensation Fund is reported as an Agency Fund in the accompanying financial statements. mom Total Special Capital (Memorandum General Fund Revenue Projects Only_ Reserved for: Debt service $ 225,687 - - 225,687 Encumbrances 78,979 440,284 395,061 914,324 Specific projects and programs 5,000 349,772 135,452 490,224 Unreserved: Designated for: Specific projects and programs 156,894 4,726,392 - 4,883,286 Undesignated 7,711,454 - - 7,711,454 Total fund equity $8,178,014 5,516,448 530.5 14.224.975 (7) Deferred Compensation The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City makes no contribution under the plan. As of� June 30,' 1995, the deferred compensation liability included in an Agency Fund was $325,131 carried at market value. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights, are solely the property and rights of the City, subject only to the claims of the. City's general creditors. Because the City handles these funds in a fiduciary capacity, the Deferred Compensation Fund is reported as an Agency Fund in the accompanying financial statements. mom CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (8) City Employees Retirement Plan (Defined Benefit Pension Plan) Plan Description The City of Diamond Bar contributed to the California Public Employees Retirement System (PERS), 'an agent multiple -employer defined pension plan that acts as a common investment and administrative agent for participating public entities within the State of California. The City's payroll for employees covered by PERS for the year ended June 30, ' 1995 was $1,214,921. The total payroll for the year was $1,298,633. All full-time and part-time benefitted City employees are eligible to participate in PERS. Part-time hourly non -benefitted employees do not participate in PERS. Benefits vest after five years of service. City employees who retire at or after age fifty, with five years of credited service are entitled to an annual. retirement benefit, payable monthly for life, in an amount equal to the average monthly pay rate for the last twelve consecutive months. PERS also provides death and survivor's benefits. These benefit provisions and all other requirements are established by State statute and City ordinance. Employee and Employer Contribution Obligations Contributions required of City employees are paid by the City on behalf of the employees. The rates are set by statute and therefore remain unchanged from year to year. The present rates are: Member Rates as a Category Percentage of Wages Local miscellaneous members 7% The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial bases recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step -rate benefits. estimated to be payable in the future as a result of employee service to date. 1',e measure is intended to help assess the funding status of PERS on a going -concern bans. assess progress made in accumulating sufficient assets to pay benefits when due. and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to PERS. -21- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (8) Cid Employees Retirement Plan (Defined Benefit Pension Plan). (Continued) Funding Status and Progress. (Continued) The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Neither an actuarial valuation nor an annual update as of June 30, 1995 is available at this time. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 8.5 percent a year compounded annually, (b) projected salary increases of 4.5 percent a year compounded annually, attributable to inflation, (c) no additional projected salary increases attributable to seniority/merit, and (d) no post retirement benefit increases. The total overfunded pension obligation applicable to the City employees was $190,116 at June 30, 1994, as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees: Accumulated employee contribution including allocated investment earnings Employer -financed vested Employer -financed non -vested Total pension benefit obligation Net assets available for benefits at cost (Market value is $741,255) Overfunded pension benefit obligation Changes in the pension benefit obligation from last year resulted from the following: Changes in benefit provisions Changes in actuarial assumptions Total -22- $ 39,677 309,036 71,145 133.511 553,369 743.485 CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (8) City Employees Retirement Plan (Defined Benefit Pension Plan) PERS used the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost method in which the employer';s total normal cost is expressed as a level percent of payroll. PERS also uses the. level percentage of payroll. method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial liability ends in the year 2000 for prior service benefits and current service benefits. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit f obligation, as previously described. The contribution to PERS for the year ended June 30, 1995 of $161,644 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1993. The contribution consisted of the following: Percent of Covered Amount Payroll Normal cost $162,386 13.37% Amortization of unfunded (overfunded) actuarial accrued liability) .(.06)% Total contribution $161,644 13.31% Contribution: Employer $ 76,600 6.31% Employee 85.044 7.00% Total contribution $161 13.31% The actual employer contributions paid were reduced by $15,283 due to permitted use of surplus assets. Trend Information For the three years ended June 30, 1993, 1994 and 1995, the total contribution to PERS was 13.68%, 13.34% and 13.31%, respectively, of the annual covered payroll. The total contribution paid by the City included the employer contributions as well as the member contribution for which the City is contractually obligated to pay on behalf of its employees. The total contributions paid by the City was based upon actuarially determined requirements. -23- CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (8) CitEmployees Retirement Plan (Defined Benefit Pension Plan) Trend Information, (Continued) Since the required ten-year information for the City of Diamond Bar alone is not displayed in the California PERS annual report, this information must be disclosed in the financial statements of the City. This ten-year historical trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.. However, the year ended June 30, 1990 is the first year the City participated in PERS. Moreover, such information for the year ended June 30, 1995 is not yet .available. Until ten years of data are available, as many years as are available will be presented. Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation, thereby enhancing comparability for trend analysis purposes. Available trend information (in hundreds) is summarized as follows: (6) t (4) Unfunded Pension Actuarial (1) (2) (3) Unfunded (5) Benefit Obligation Valuation Net Assets Pension Percentage Pension Benefit Annual as a Percentage as of Available Benefit Funded Obligation Covered of Covered Payroll June 30 for Benefits Obligation (1)/(2) (2)=(1) Payroll (4)/(5) 1990 250.7 288.8 86.8 38.1 3,122.1 1.2 1991 1,318.0 1,220.6 108.0 (97.5) 9,360.3 (1.0) 1992 3,106.8 2,632.3 118.0 (474.6) 11,060.5 (4.3) 1993 4,743.9 3,839.9 123.5 (904.1) 10,098.5 (9.0) 1994 7,434.8 5,533.6 134.4 (1,901.2) 14,408.0 (13.2) (9) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 1995 are as follows: Current Current Interfund Interfund Receivables Payables General fund $142,193 10,991 Special revenue funds: Traffic safety - 14,031 State gas tax - 312,948 Proposition A 49,694 8,234 f Proposition C - 177,120 l Park fees - 546 Safe parks. - 53,166 Community development block grant - 139,017 Assessment districts 10,992 24,632 Capital projects funds: Traffic mitigation 1,249 1,225 Capital improvement 537,782 - Total .214 2?Q -24- i. CITY OF DIAMOND BAR Notes to Financial Statements (Continued) (10) Expenditures in Excess of Appropriations Expenditures and transfers out for the year ended June 30, 1995 exceeded the appropriations for expenditures and transfers out of the following funds: Capital projects funds: Traffic mitigation Budget Actual Variance $ - 1,249 (1,249) Management's explanation for the expenditures in excess of appropriations is summarized as follows: The project was completed in the previous year and the fund was closed. Subsequently, it was determined that a portion of the work was substandard and the City hired a consultant to evaluate the work. In order to track subsequent costs incurred, the City reopened the fund and recorded the costs to the project, which was not budgeted for in the current year. (11) Risk Management - Coverage The City participates in the Southern California Joint Powers Insurance Authority. The purpose of this organization is to reduce the cost of liability insurance coverage by having the member cities act as self insurers among themselves. The City's self-insurance retention level for Comprehensive General Liability claims is $20,000 with a pro rata sharing of all member incurred losses up to $10,000,000 per ocurrence. The membership of SCJPIA consists of approximately 78 cities with similar interests and needs regarding general liability insurance. Premiums are based upon the losses incurred by the insured and rebates are possible if the losses are minimal. The Board of Directors sets the premiums, and each member city is represented on the Board. (12) Contingent •Liabilities The City is a defendant in various litigation arising in the normal course of operations. In the opinion of management and counsel, the outcome is not expected to materially adversely affect the financial position of the City. -25- (This page intentionally left blank) -26- GENERAL FUND To account for all the general revenue of the City not specifically levied or collected for the other City funds and for expenditures related to the rendering of general services by the City. -27- CITY OF DIAMOND BAR General Fund Comparative Balance Sheets June 30, 1995 and 1994 Assets Cash and investments Accounts receivable Interest receivable Due from other funds Due from other governments Total assets Liabilities and fund eauit Liabilities: Accounts payable Accrued expenses Retentions payable Deferred revenue Due to other funds Deposits Total liabilities Fund balances: Reserved for: Receivable Encumbrances Debt service Specific projects and programs Unreserved: Designated for: Specific projects and programs Undesignated Total fund balances Total liabilities and fund balances -28- Exhibit A-1 1995 1994 $7,967,594 5,746,990 181,919 128,441 217,738 135,950 142,193 60,953 1.266,036 2,091,251 9.775.480 8,163,585 $1,152,678 1,084,418 62,922 90,276 6,659 - 112,723 - 10,991 - 251,_493 105.129 1.597.466 1,279.823 - 823,605 78,979 88,154 225,687 289,384 5,000 5,000 156,894 - 7,711,454 5,677,619 8,178,014 6,883,762 9.775,480 8,163,S8U5 Exhibit A-2 CITY OF DIAMOND BAR Comparative Statement of Revenues, Expenditures and Changes in Fund Balances General Fund For the fiscal years ended June 30, 1995 and 1994 -29- 19941995 , Revenues: $4,964,207 4,981,235 Taxes Licenses, permits and fees 748,198 2,859,755 740,308 2,926724 Intergovernmental 130,253 88,137 Fines and forfeits 393,439 242,248 Interest 51,000 37,492 Other revenues Total revenues 9,146,852 9, 016,144 Expenditures: 1,922,452 2,316,053 General government 4,099,515 31819,724 Public safety 1,123,633 1,735,770 Public works Parks, recreation and culture 1,027,979 976,957 30,927 Capital outlay 67,884 Debt service: 450,000 Principal Total expenditures 8,24.1,463 9,329,43, Excess (deficiency) of revenues over expenditures 905.3 1 89 (313,,,287) Other financing sources (uses): 750,186 219,792 Operating transfers in (383,679) Operating transfers out 22,356 Proceeds of capital lease Total other financing sources (uses) 388,863 219..,792 Excess (deficiency) of revenues over expenditures and other financing, 1,294,252 (93,495) sources (uses) Fund balances*at beginning of year .6 ,883,762 6,977.257 Fund balances at end of year 6,883,762 -29- CITY OF DIAMOND BAR Revenue Detail - Budget and Actual General Fund Year ended June 30, 1995 Taxes: Real estate transfer tax Sales and use tax Franchise fees Transient occupancy tax Property tax allocation Total taxes Intergovernmental: Motor vehicle in lieu tax Library services Homeowners exemption Off highway tax Grants Total intergovernmental Licenses, permits and fees Fines, forfeitures and penalties, and court fines Interest earned on investments Other: Rental income Donations Miscellaneous Total other revenue Total revenues Exhibit A-3 t. -30- 1995 Over/(Under) 1994 Budget Actual Budget Actual $ 95,000 113,394 18,394 123,772 2,150,000 2,173,979 .23,979 2,102:567 615,000 647,518 32,518 652,108 180,000 152,341 (27,659) 220,988 2,711,000 1,876,975 (834,025) 1,881,800 5,751.000 4,964,207 (786,793) 4,981,235 2,436,000 2,601,163 165,163 2,494,055 200,000 207,000 7,000 - 20,000 35,711 15-,711 35,273 1,700 411 (1,289) 1,219 15'.470 15,470 396,666 2,657,700 2,859,755 202,055 2,927,213 771,100 748,198 (22,902) 740,308 124,000 130,253 6,253 88,137 280,000 393,439 113,439 242,248 25,000 26,149 1,149 11,389 1,100 1,585 485 7,697 7,400 23,266 15,866 17,917 33,500 51,000 17,500. 37,003 $9,617,300 9,146.852 (470 .-44-8) 9-016_144 -30- CITY OF DIAMOND BAR Expenditure Detail - Budget and Actual General Fund Year ended June 30, 1995 General government: City Council City Manager City Clerk Finance City Attorney Planning General government Promotion i Total general government Public safety: Law enforcement Fire Building and safety Animal control Emergency preparation Total public safety Public works Parks, recreation, and culture Principal retirement Capital outlay Total expenditures 1995 Budget Actual $ 105,735 89,213 373,800 398,839 190,150 189,862 218,100 210,890 185,000 132,474 488,530 428,643 390,500 346,307 171,050 126.224 2.1 2,865 1922, 3,865,500 3,855,221 7,530 7,359 200,000 170,088 52,500 54,169 17.600 12.678 4,143,130 4,099.5 1,395.97 1,123.63 1,243.8. 1,027.97 -31- 67.884 8,241.4�t.3. Over/(Under) Budget 16,522 (25,039) 288 7,210 52,526 50,887 44,193 44,826 200.413 10,279 171 29,912 (1,669) 4.922 43.615 272.341 215.826 25.851 758.0 Exhibit A-4 1994 Actual 92,956 327,585 237,448 185,537 405,012 473,026 283,684 92,830 1 1 . 3,762,539 7,359 194,975 49,826 23,000 4.037,E 1,735..770 976,957 450.000 30,927 2-329-411 (This page intentionally left blank) MID SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. The City of Diamond Bar has eleven -Special Revenue Funds: Traffic Safety Fund — To account for fines collected.on Vehicle Code violations which can be expended only for traffic safety purposes. 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 account for the receipt and expenditure of the City's share of the 1/2 cent 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 County Metropolitan Transportation Authority for the City's transit and transit -related improvement projects. 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. Park Fees Fund - To account for revenues received and expenditures made for park development and improvement. nder the State of alifornia's Quimby Actpark development fees collected from developers Proposition A Safe Parks Act Fund - To account for funds received and expended as a result of the approval of the Los Angeles County Safe Neighborhood Parks Act passed in 1992. This Act provides funds to cities to improve, preserve, and restore parks. Community Development Block Grant Fund - To account for the City's allotment of CDBG funds from the federal government via the Los Angeles Community Development Commission. These funds are used to fund community development programs and projects benefiting low and moderate income citizens. SB 821 Fund - To account for �keures related to the and pedest pedestrian pathsreceipt of state funds allocated for the purpose of the construction of b Landscape Maintenance Districts Funds - 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. -33- CITY OF DIAMOND BAR Special Revenue Funds Combining Balance Sheet i June 30, 1995 Traffic State Prop. A Prop. C Solid Air Quality Safety Gas Tax Transit Transit Waste Improvement Park Fees Assets Cash and investments $ 358 2,589,373 1,040,245 1,413,871 63,945 85,411 365,950 Accounts receivable - - - - 3,210 - - Due from other funds - - 49,694 - - - _ Due from other governments 14:031 - 44,754 37.714 - 16,130 f Total assets 14 2.589,373 1,134,693 1.451.585 x,155 1 41 3rQ 1( Liabilities and Fund Balance Liabilities: Accounts payable $ - - 34,219 - 15,460 1,656 - Accrued expenses - 378 751 - 719 240 - Retentions payable - - - - Due to other funds 14,031 312,948 8,234 177,120 - 546 Total liabilities 14,031 313,326 43,204 177,120 16,179 1,896 546 Fund balances Reserved for: r Encumbrances - 128,476 - 294,302 1,360 - 15,632 I Specific projects and programs - - - - - - 349,772 Unreserved: Designated for: Specific projects and programs 358 2,147,571 1,091,489 980,163 49,616 99,645 - Total fund balances 358 2,276,047 1,091,489 1,274,465 50,976 99,645 365.404 Total liabilities and fund balance $14:__389 2.589.373 1.134.693 1.451.585 67,155 101,541 365,950 ' -34- Exhibit B=1 Community Landscape Totals 59,530 Prop. A Development Maintenance (Memorandum Only) 1994 Safe Parks Block Grant' Districts AB 821 1995 - 53.166 139.017 271,303 142,204 5,972,660 5,765,120 53.166 156.577 - 3,210 5,073 _ 109992 - 60,686 - - ,j 53.166 156.577 156.577 03 12.2 - cL4 142.20 334.575 6,371,131 235.707 6 005.900 16,418 51,840 _ 119,593 59,530 _ 1,142 68 - 3,298 12,842 _ 2,098 - 2,098 - 53.166 139.017 24.632 - 729.694 150.118 53.166 156.577 78.638 854.683 222.490 514 - 440,284 192,029 ,I 349,772 275,733 215.346 142.204 4,726,392 5,315 f6.371.131 �1�(z 156,577 i 215.860 294,498 142.204 5,516'. 142�Q 5,783, 6 .• U_o�2S24 -35- CITY OF DIAMOND BAR Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1995 -36- Traffic State Prop. A Prop. C Solid Air Quality Safety Gas Tax Transit Transit Waste Improvement Revenues: Special assessments $ - - - - - - Licenses, permits and fees - - - - - - Intergovernmental - 1,290,357 539,951 526,676 19,421 60,377 Fines and forfeits 1239'571 - - - - - Charges for services - - 137,966 - 72,170 - Interest 1,400 150,170 50,966 77,851 2,582 3,684 Other revenues - - 2,999 - - Total revenues 124,971 1,440,527 731,882 604,527 94,173 64,061 Expenditures: Highways and streets - 19,610 307,299 259 - - Public works - - 202,858 - 83,748 - Community development - - - - - 27,031 Parks, recreation and culture - - 44,309 - - - Capital outlay - - - - - 4,760 Total expenditures - 19,610 554,466 259 83.,748 31,791 Excess (deficiency) of revenues over (under) expenditures 124,971 1,420,917 177,416 604,268 10,425 32,270 Other financing sources (uses): Operating transfers in - - - - - - Operating transfers out (124,613) (1,620,231) (45,287) (708,788) - - Total other financing sources (uses) (124,613) (1,620,231) (45,287) (708,788) - - Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) 358 (199,314) 132,129 (104,520) 10,425 32,270 Fund balances at beginning of year - 2,475,361 959,360 1,378,985 40,551 67,375 Fund balances at end of year 5_ _358 2 �Z�,Q42 1,09.1,489 1.274,465 50 976 99 � -36- Exhibit B-2 jCommunity Landscape Totals Prop. A Development Maintenance (Memorandum Onlyl Park Fees Safe Parks Block Grant Districts AB 821 1995 1994 476.,148 - 476,148 499,030 - _ _ 74,190 93,132 74,190 _ 18,333 - 188,039 - 21,391 2,664,545 2,572,322 • _ _ 123,571 99,293 - _ _ 210,136 79,615 I 15,994 8,410 330,109 221,952 19,052 - - 5.399 880 2.400 - - 93,242 18,333 190:439 492.142 29,801 3,884, 3,566,224 _ _ 327,168 140,003 if _ _ _ _ 414,659 - 701,265 560,649 _ 84,110 - - 111,141 - _ _ 44,309 - _ 2.880 1.072 - 8.712 107,348 86.990 415.731 - 1,192.59 808,000 93.242 18,333 103,449 76,411 29.801 2.691.503 2,758.224 10,992 - 10,992 - (3,571) _ (18,333) (103.449) (295.185) 5( 0,000) (2,969, 457) (1.668.117) I (3,571) (18,333) (103,449) (284.193) 5( 0,000) (2,958, (1,668.117) 89,671 - - (207,782) (20,199) (266,962) 1,090,107 275.733 - - 423,642 162,403 5,783,410 4,693.303 -65 _ _ 215.860 142,x4Q 5.516.448 5,783,410 -37- Exhibit B-3 CITY OF DIAMOND BAR .Special Revenue Funds Traffic Safety Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Other financing sources (uses): Operating transfers out (75,600) (124.613) (49,013) Total other financing sources (uses) (75,600) (124.613) (49.013) Excess (deficiency) of revenues, over (under) expenditures and other financing sources (uses) - 358 358 Fund balances at beginning of year - - - Fund balances at end of year $ - 358 35g -38- Variance Favorable Budget Actual (Unfavorable) Revenues: Fines and forfeits $75,000 123,571 48,571 Interest 600 1.400 800 Total revenues 75,600 124.971 49.371 Excess (deficiency) of revenues over (under) expenditures 75.600 124,971 49.371 Other financing sources (uses): Operating transfers out (75,600) (124.613) (49,013) Total other financing sources (uses) (75,600) (124.613) (49.013) Excess (deficiency) of revenues, over (under) expenditures and other financing sources (uses) - 358 358 Fund balances at beginning of year - - - Fund balances at end of year $ - 358 35g -38- ............................... Exhibit B-4 CITY OF DIAMOND BAR Special Revenue Funds State Gas Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Intergovernmental Interest Total revenues Expenditures: Highways and streets Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other financing. sources (uses) Fund balances at beginning of year Fund balances at end of year Budget Actual $1,275,950 - 100.000 1.3 75-9-50 1,290,357 150.170 1.440.527 19.610 19.610 1 375,950 1,420, (2,819 .420) (-1,6-2-0-.- 231 ) (2 839 ,420) (1.620,231) (1,463,470) 2 475.361 !1.01.1.891 -39- (199,314) 2 475.361 2�76_S-47- Variance Favorable (Unfavorable) 14,407 50.170 64.577 (19,610) (19,610) 44,967 1,219,1 1,219,189 1,264,156 Exhibit B-5 CITY OF DIAMOND BAR Special Revenue Funds Proposition A Transit Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Revenues: Intergovernmental Charges for services Interest Other revenues Total revenues Expenditures: Highways and streets Public works Parks, recreation and culture Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses') Excess (deficiency) of revenues over (under) expenditures and other financing sources'(uses) Fund balances at beginning of year Fund balances.at end of year (60,900) 132,129 193,029 959,360 959,360 �898.4�i4 1.091.489 1�Q:�2 -40- Variance Favorable Budget Actual (Unfavorable) $538,600 539,951 1,351 195,000 137,966 (57,034) 15,000 50,966 35,966 - 2,999 2,999 748,600 731382 (16,718) 310,000 307,299 2,701 132,500 202,858 (70,358) 122,000 44,309 77,691 564,500 554,466 10,034 184,100 177,416 (6,684) (245,000) (45,287) 199,713 (245,000) (45,287) 199,713 (60,900) 132,129 193,029 959,360 959,360 �898.4�i4 1.091.489 1�Q:�2 -40- Exhibit B-6 CITY OF DIAMOND BAR Special Revenue Funds Proposition C Transit Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 I Variance Favorable 'i Budget Actual. (Unfavorable) Revenues: ' 438,150 Intergovernmental 526,676 88,526 47.851 30.000 77.851 Interest Total revenues 468.150 604.527 136.377 Expenditures: 2590 Highways and,streets - 259 ?59) Total expenditures - Excess (deficiency) of revenues over (under) expenditures 468.150 604,268 136.118 Other financing sources (uses): (900.000) Operating transfers out (708.788) 191.212 Total other financing (uses) (900,000) (708.788) 191.21' sources Excess (deficiency) of revenues over (under) expenditures and other financing (431,850) (uses) (104,520) 327,330 sources Fund balances at beginning of year 1,378,985 1,378,98 - Fund balances ' at end of year 947.1354_x.1..3! 4 I i -41- L -42- Exhibit B-7 j CITY OF DIAMOND BAR Special Revenue Funds Solid Waste Fund i Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Variance �. Favorable Budget Actual (Unfavorable) Revenues: Intergovernmental $ 22,427 19,421 (3,006) Charges for services 81,000 72,170 (8,830) Interest 500 2.582 2.082 t Total revenues 103.927 94.173 (9,754) Expenditures: Public works 96,500 83,748 12.752 Total expenditures 96,500 83,748 12.752 { Excess (deficiency) of revenues over (under) expenditures 7,427 10,425 2,998 Fund balances at beginning of year 40.551 40.551 - Fund balances at end of year42,..Q�$ -42- Exhibit B-8 CITY OF DIAMOND BAR Special Revenue Funds. Air Quality Improvement Fund Statement of Revenues, Expenditures nges in Fund Balances Budget and Actual - i Year ended June 30, 1995 Variance Favorable Budget Actual (Unfavorable) Revenues: Intergovernmental $40,000 60,377 20,377 1,934 1,750 3,684 Interest Total revenues 41.750 64,061 22,311 Expenditures: 41,01.0 27,031 13,979 Community development 9,500 4,760 4,740 Capital outlay Total expenditures 50,510 31.791 18.719 Excess (deficiency) of revenues over (under) expenditures 8,760) 32,270 41,030 Fund balances at beginning of year 67.375 67,375 - Fund balances at end of year Exhibit B-9 CITY OF DIAMOND BAR Special Revenue Funds Park Fees Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Fund balances at end'of year -44- Variance Favorable Budget Actual (Unfavorable) Revenues: Licenses, permits and.fees $ 93,000 74,190 (18,810) Interest 7.000 19.052 12.052 Total revenues 100.000 93.242 (6,758) Excess (deficiency) of revenues over (under) expenditures 100.000 93.242 (6,758) Other financing sources (uses): Operating transfers out 80 130)' -(3,571) 76.559 Total other financing sources (uses) 80 130) (3,571) 76.559 Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) 19,870 89,671 69,801 Fund balances at beginning of year 275.733 275.733 - Fund balances at end'of year -44- Exhibit B-10 CITY OF DIAMOND BAR Special Revenue Funds Proposition A Safe Parks.Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 -45- Variance Favorable Budget Actual (•Unfavorable) Revenues: Intergovernmental $2 020.000 18.333 (2 001,667) 2,020,000 18,333 (2,00L. Total revenues Excess (deficiency) of revenues over (under) expenditures 2,020.0 18.333 �2 001,667) Other financing sources (uses): Operating transfers out (1 590,000) (18.333) 1 571,667 Total other financing (uses) (i 590.000) (18,333) 1 571,667 sources Excess (deficiency) of revenues over (under) expenditures and other financing 430,000 - (430,000) sources (uses) Fund balances at beginning of year - - - (430,000) Fund balances at end of year 430.004 -45- Exhibit B-11 CITY OF DIAMOND BAR Special Revenue Funds Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Fund balances at beginning of year Fund balances at end of year -46- Variance Favorable Budget_ Actual (Unfavorable) Revenues: Intergovernmental $507,379 188,039 (319,340) Other revenues - 2:400 2,400 Total revenues 507,379 190,439 (316,940) Expenditures: Community development 110,220 84,110 26,110 Capital outlay 7,379 _ 2,880 4,499 Total expenditures 117,599 86,990 30,609 Excess (deficiency) of revenues over (under) expenditures 389,780 103,449 (286,331) Other financing sources (uses): Operating transfers out 1386,110) (103,449) 282,661 Total other financing sources (uses) 386 110) (103,449) 282,661 Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) 3,670 - (3,670) Fund balances at beginning of year Fund balances at end of year -46- Exhibit B-12 CITY OF DIAMOND BAR Special Revenue Funds Landscape -Maintenance Districts Fund Statement of Revenues, Expenditures Actual in Fund Balances - Budgetand A Year ended June 30, 1995 Revenues: Special assessments Interest Total revenues Expenditures: public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in -Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) Fund balances at beginning of year Fund balances at end of year (228,684) (207,782) 20,902 423,642_ 423,642 - $194, 958 -47- Variance Favorable Budget Actual (Unfavorable) $478,966 476,148 (2,818) 11.000 15.994 4.994 489.966 492.142 2,176 458,650 414,659 43,991 1.072 (1,072) 458.650 415.731 42.919 31.316 76.411 45,095 - 10,992 10,992 26�) (295.185) (35.185) (260.0 00) (284.193). (24,19 (228,684) (207,782) 20,902 423,642_ 423,642 - $194, 958 -47- -48- Exhibit B-13 CITY OF DIAMOND BAR Special Revenue Funds AB 821 Fund Statement of Revenues, Expenditures and Changes.in Fund Balances - Budget and Actual Year ended June 30, 1995 Variance Favorable _Budget Actual (Unfavorable) Revenues: Intergovernmental $ 18,000 21,391 3,391 Interest 3,000 8.410 5,410 Total revenues 21.000 29,801 8.801 Excess (deficiency) of revenues over (under) expenditures 21.000 29.801 8,801 Other financing sources (uses): Operating transfers out (70,000)(50 000)' 20.000 Total other financing sources (uses) (70,000) (50,000) 20.000 Excess (deficiency) of revenues over (under) expenditures and, other financing sources (uses) (49,000) (20,199) 28,801 Fund balances at beginning of year 162.403. 162,403 Fund balances at end of year $113 4Q I`42,20� 2 .SOI -48- CAPITAL PROJECTS FUNDS Capital Projects Funds are used to acpro ount for the purchase or construction of major capital facilities which are not financed by Proprietary Funds or Trust Funds. Capital Projects Funds are ordinarily not used to account for the acquisition. of furniture, fixtures, machinery, equipment and other relatively minor or comparatively short-lived -general fixed assets. The City of Diamond Bar has three Capital Projects Funds: Grand Avenue Construction Fund - To account for the expenditure of funds received from the County of San Bernardino in settlement of the Grand Avenue litigation. These funds are used for street and traffic improvements along Grand Avenue. Traffic Mitigation F - To account for the expenditure of traffic mitigation fees which were transferred by the Los Angeles County to the City upon incorporation. These fees were to be used for street and signal improvements around the Gateway Corporate Center. These funds were used for the rehabilitation of Golden Springs. Fund - To account for the costs of constructing street Capital Improvement Project other ublic improvements not normally included improvements, park improvements, and p within the other Capital' Projectpr s funds. Financing is ovideby developer fees and interfund transfers from the Special Revenue Funds and the General l Fund. -49- -50- Exhibit C-1 CITY OF DIAMOND BAR Capital Projects Fund Combining Balance Sheet June 30, 1995 Totals ` Grand Traffic Capital (Memorandum Only) Avenue Mitigation Improvement 1995 1994 Assets Cash and investments $397,671 - 142,764 540,435 545,002 Due from other funds - 1,249 537.782 539,031 89,165 Total assets Z 1 L2A2 5$4 4 1,079�,466466 , 4 Liabilities and fund balance j Liabilities: Accounts payable $ 2,369 24 383,994 386,387 95,713 j Accrued expenses 241 - 69 310 38S9 Retentions payable - - 161,031 161,031 , Due to other funds - 1,225 - 1,225 Total liabilities 2,610 1,249 545,094 548,953 99,S72 Fund balances: Reserved for: Encumbrances 395,061 - - 395,061 9,150 Specific projects and I programs Unreserved - - 135,452 135,452 124,404 - - - - 401,041 Total fund balance 395,061 - 135,452 530,513 534,595 1 Total liabilities and fund balance 249 Si$545 1.079.466 t 14.162 -50- Exhibit C-2 CITY OF DIAMOND BAR Capital Projects Fund Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1995 -51- Totals Grand Traffic Capital (Memorandum Only) 1994 Avenue_ Miti� Improvement 1995 Revenues: $ _ 59,200 59,200 122,395 Licenses,.permits and fees _ 116,100 116,100 10,000 Intergovernmental _ 3.846 9.145 2.009 Interest 5,299 - 5.299 - 179,146 184,445 134,40 4 Total revenues Expenditures: _ 1,281,010 1,281,010 1-, Highways and streets _ 20,429 1,224 831,710 853,363 13,894 Public works 236,569 236,569 Community development - 25 41,268 41;293 1,500,134 Capital outlay - Debt service: 100,000 100,000 100,000 Principal - _ _ 8,780 8.780 14.790 Interest - 20,429 1,249 2 499,337 2,521,01 1.628,818 Total expenditures Excess (deficiency) of revenues over (under) expenditures1( 5,130) (1,249) 2,320.191) (2 336.570) (1,494,41 Other financing sources (uses): L249 2 331.239 2, 332.488 1 304,930 Operating transfers in - Total other financing 1.249 2,331,239 2,332,48 1,300,930 sources (uses) - Excess (deficiency) of I revenues over (under) expenditures and other financing sources (15,130) - 11,048 (4,082) (193.484) (uses) Fund balances at beginning 410,191 - 124.404 534,595 of year - 4�2 - Fund balances at end of year $ 951 _� -51- Exhibit C-3 CITY OF DIAMOND BAR Capital Projects Funds Grand Avenue Capital Project Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Fund balances at end of year -52- Variance Favorable Budget Actual (Unfavorable) Revenues: Interest $ 5,299 5,299 Total revenues - 5,299 5:299 Expenditures: Public works 724,300 20.429 703,871 Total expenditures 724,300 20,429 703,871 Excess (deficiency) of revenues over (under) expenditures (724,300) 15 130) 709,170 Other financing sources (uses): Operating transfers in 320,000 - (320,000) Total other financing sources (uses) 320,000 - (320.000) Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) (404,300) (15,130) 389,170 Fund balances at beginning of year 410,191 410,191 - Fund balances at end of year -52- Exhibit C-4 CITY OF DIAMOND BAR Capital Projects Funds Traffic Mitigation Capital Projects Fund Statement of Revenues, Expendituresand and Changes in Fund Balances - Budget Year ended June 30, 1995 Expenditures: Public works Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Total other financing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other financing sources (uses) Fund balances at beginning of year Fund balances at end of year Budget -51- Variance Favorable Actual (Unfavorable) 1,224 (1,224) 25 25) 1 249 (1,249) (1,249) (1,249). 1,249 1,249 1,249 1,249 CITY OF DIAMOND BAR Exhibit C-5 ( l Capital Projects Funds Capital Improvement Fund f Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1995 Variance Favorable _ Budget _ Actual (Unfavorable) Revenues: ` Licenses, permits and fees $ 65,500 59,200 (6,300) Intergovernmental 116,100 116,100 _ Interest - 3.846 3.846 Total revenues 181.60.0 179.146 (2,454) Expenditures: Highways and streets 1,727,301 1,281,010 446,291 Public works 1,889,167 831,710 1,057,457 Community development 549,510 236,569 312,941 Capital outlay 1,920,293 41,268 1,879,025 Debt service: Principal 100,000 100,000 _ Interest 8.780 8.780 Total expenditures 6,195.051 2.499.337 3,695,714 Excess (deficiency) of revenues over (under) expenditures (6.013.451) (2.320.191) 3.693.260 Other financing sources (uses): Operating transfers in 5.705.928 2.331.239 (3.374.689) Total other financing sources (uses) 5.705,928 2.3311,239 (3.374.689) Excess (deficiency) of revenues over (under), expenditures and other financing sources (uses) (307,523) 11,048 318,571. Fund balances at beginning of year 124.404 124,404 _ Fund balances at end of year -54- AGENCY FUNDS Agency Funds. are used to account for assets held by a government as an agent for individuals, private organizations, other governments and/or other funds The City of Diamond Bar has one Agency Fund: Deferred Compensation Agency Fund - To account for monies held in trust by the City f . or employees who elect to defer a portion of their salary until retirement. -55- Exhibit D-1 CITY OF DIAMOND BAR Agency Funds Statement of Changes in Assets and Liabilities Year ended June 30, 1995 Balance at Balance at July 1, 1994 Additions Deductions June 30 1995 DEFERRED COMPENSATION FUND Assets Cash and investments $234,013 21-116 5.5a Liabilities Deferred compensation payable X4,013 2Lfdfi 55-$ 325.1,3 -56- GENERAL FIXED ASSETS ACCOUNT GROUP -57- Exhibit E-1 CITY OF DIAMOND BAR Comparative Schedule of General Fixed Assets - By Source June 30, 1995 and 1994 General fixed assets: Land Buildings Improvements Furniture and equipment .Total general fixed assets Investment in general fixed assets by source: General Fund Donations Federal and state governments Assessment districts Total investment in general fixed assets -58- 1995 1994 $1,961,615 1,961,615 859,345 854,908 579,301 579,301 684,279 611,840 $4,084,540 4.007.664 $3,002,922 2,931,969 98,649 98,154 970,381 964,953 12,588 12,588 $4,084, 4 07 CITY OF DIAMOND BAR Schedule of General Fixed Assets - By Function and Activity June 30, 1995 Functionand-Activi General Government: City Council Administration City Clerk Community Development Finance Other Total General Government Public Safety: Sheriff Emergency Preparedness Total public Safety Public Works Culture and Recreation Total general fixed assets Exhibit E-2 -59- 6&4,—M —1—.0—M-5-4111 Furniture and Land Buildinas Improvements Equipment Total $- 8,969 8,969 - 422,777 422,777 - 16,381 16,381 - 15,328 15,328 - 59,158 59,158 401" 11,000 412,615 401.,.615 533,61.3 935,228. 13,775 13,775 25,882 25.882 39,657 39,657 19,735 19,735 1.560,000 859,345 579,301 91,274 3,089, 920 -59- 6&4,—M —1—.0—M-5-4111 I (This page intentionally left blank) L t f -60- I Total General Fund Expenditures I 14 12 10 8 C: .0 6 4 2 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Fiscal Year (1) includes General, Special Revenue and Capital Project Funds. *Note: Capital Outlay includes Street &Highways Expenditures Source: City Finance Department -61- City of Diamond Bar Table 1 General Governmental Expenditures .by Function (1) Since Incorporation in April, 1989 (unaudited) Fiscal General Public Public Culture & Capital Debt Year Government Safety Works Recreation Outlay* Service i9ladi 1968-89 $249,482 $438,805 $90,927 $31,296 $0 $6;325 $816,835 1989-90 $2,509,540 $3,235,362 $1,143,795 $357,604 $1,027,049 $90,842 $8,3614,192 1990-91 $3,322,753 $3,600,879 $1,397,501 $603,997 $949,540 $0 $9,874,670 1991-92 $2,923,206 $3,794,887 $1,673,144 $740,687 $359,931 $0 $9,491,855 1992-93 $2,963,968 $3,478,006 $2,094,910 $822,559 $1,876,098 $100,000 $11,335,541 1993-94 $2,456,056 $3,819,724 $2,310,313 $976,957 $1,638,409 $564,790 $11,766,249 1994-95 $2,270,162 $4,099,515 $2,678,261 $1,072,288 $1,726,067 $108,780 $11,955,073 I Total General Fund Expenditures I 14 12 10 8 C: .0 6 4 2 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Fiscal Year (1) includes General, Special Revenue and Capital Project Funds. *Note: Capital Outlay includes Street &Highways Expenditures Source: City Finance Department -61- City of Diamond Bar General Governmental Revenues by Source (1) Since Incorporation in April, 1989 (unaudited) Fiscal Special Licenses & Inter- Fines & Use of Money Year Taxes* Assessments Permits Governmental Forfeitures & Properly 1988-89 $21,093 $0 $112,578 $1,371,326 $1,946 $1,650 1989-90 $3,497,401 $409;454 $841,525 $5,271,606 $193,852 $440,520 1990-91 $4,409,302 $422,038 $597,771 $5,993,281 $281,891 $506,081 1991-92 $4,593,790 $466,369 $864,260 $5,067,309 $97,730 $578,340 1992-93 $4,494,173 $469,671 $724,694 $5,910,715 $123,242 $4511077 1993-94 $5,060,850 $499,030 $965,835 $5,539,046 $187,430 $466,209 1994-95 $5,174,343 $476,148 $881,588 $5,640,400 $253,824 $732,693 Table 2 Other Revenue Total $46,625 $1,555,218 $8,313 $10,662,671 $55,307 $12,265,671 $273,078 $11,940,876 $101,305 $12,274,877 $38,372 $12,756,772 $56,399 $13,215,395 Total General Governmental Revenues 14 12 10 0 8 c 0 6 IZ 4 2 0 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Fiscal Year (1) Includes General, Special Revenue and Capital Project Funds Note: 1991-1992 "Other Revenue" includes $179,679 of developer fees collected in the Special Revenue Fund " Note: Taxes category includes Charges for Services. Source: City Finance Department -62- City of `~^~, —' — ' ''— — Secured Property Tax Levies and Collections Since Incorporation April 1989 . (unaudited) Total Current Total Current Percent of Levy Deliqumn Tax LP -V -Y Collections Codhected . Reqeivadbl�� Not Available Not Available Not Available Not Available $908.401 $835.873 92.02% $72.529 $1.089.679 $1.013.572 93.02Y6 $76.107 s1.232.348 $1.144.019 92.8396 $88,327 $1.117.482 %1.025.382 91.76Y6 $92.101 $1.180.435 $818.467 69.34Y6 $361.068 $1.804.068 $1.625.911 90.1296 $28.672 O | 1S8o-8g. 1889'90 1990-91 1991-92 1992-93 1993 -9419g4 -9S Fiscal Year ofO�n�ond8ern���da tax lawsuit .that rasuhed{n Note: The City property ~_..� } � oddNono\proper�tax poyme�stobaU|ng$1.O82.78� The funds were r000�� received in (' payments AuQuat18�4en�Augu��1 5. These omou�oare not �cudedinthe � ' -- . above fiQu�easthey ' wereassociated with the initial property tax transfer at the date of incorporation. 1 ! | `-` Source: Los Angeles County Auditor/Controller City of Diamond Bar Table 4 Assessed Value of Secured and Unsecured Property Since Incorporation in April, 1989 (unaudited) Tax Secured Gross Unsecured Gross Annual Percent Year Assessed Value Assessed Value _ Publi_ c_Utility Exemptions Net Assessed Value NAV Increase 1988-89* $2,345,946,185 $0 $0 $0 $2,345,946,185 Not Applicable 1989-90* $2,663,648,618 $0 $0 $0 $2,663,648,618 13.54% 1990-91 $2,926,368,105 $0 $827,618 $5,409,199 $2,921,786,524 9.69% 1991-92 $3,285,467,698 $40,698,263 $692,390 $10,921,667 $3,315,936,684 13.49% 1992-93 $3,493,803,851 $45,032,160 $0** $27,932,643 $3,510,903,368 5.88% 1993-94 $3,536,453,242 $49,709,273 $844,313 $25,119,688 $3,561,887,140 1.45% 1994-95 $3,619,436,021 $57,158,841 $820,862 $33,523,553 $3,643,892,171 2.30% I Net Assessed Value (in millions 4,000 1 3,500 N C 3,000 M 2,500 2,000 ' .1988-89* 1989-90* 1990-91 1991-92 Fiscal Year 1992-93 1993-94 . 1994-95 *1988-89 and 1989-90 estimated by using the combined unincorporated areas of Pomona Unified School and Walnut Valley Unified School District - Source: California Municipal Statistics ** Los Angeles County Auditor/Controller reported no Public Utility Valuations Source: Los Angeles County Auditor/Controller MMM 2.000 1.750 1.500 1.250 1.000 0.750 0.500 0.250 0.000 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 Fiscal Year Note: Property tax rates based on a typical tax rate area. Source: California Municipal Statistics, Inc. I i -65- 1994-95 City of Diamond Bar Table 5 Property Tax Rates - All Direct and Overlapping Governments (Per $100 of Assessed Valuation) Since Incorporation in April, 1989 (unaudited) Fiscal General Los Angeles Walnut Valley Walnut Valley L.A. County L.A. County Metropolitan Year Lew Coun School District Water District Flood Control Sanitation Water District. Total 1988-89 - - - - - - Not Available 1989-90 - - - _ - - - Not Available 1990-91 1.0000000 0.0021040 0.1597230 0.0578770 0.0057860 0.0007470 0.0097000 1.2359370 1991-92 1.0000000 0.0018880 0.0404290 0.0516750 0.0053760 0.0002090 0.0089000 1.1084770 1992-93 1.0000000 0.0014090 0.0974170 0.0481650 0.0033970 0.0002060 0.0089000 1.1594940 1993-94 1.0000000 0.0017130 0.0863570 0.0448070 0.0042120 0.0000000 0.0089000 1.1459890 1994-95 I, 1.0000000 0.0019930 0.0649030 0.0000000 0.0060410 0.0000000 0.0089000 1.0818370 Typical Property Tax Rates (Percent of Assessed Value) 2.000 1.750 1.500 1.250 1.000 0.750 0.500 0.250 0.000 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 Fiscal Year Note: Property tax rates based on a typical tax rate area. Source: California Municipal Statistics, Inc. I i -65- 1994-95 ���x x����^ ^� �� =.��=. =U�00���==�� City Table 6 Principal Taxpayers ------ June 30, 1995 $164,943,610 4.53% Source: L.A.Aoeaaoo 1S84/85Secured & Unsecured Tax Rolls -66- 1994-1995 Percentage of Total Taxpayer Primary Use Assessed Valuation Net AF;sessed Valuation Diamond Bar Business Associate Connmnenoio| $31.014.838 0.85Y6 LandoingPacific Fund Connrnaroia| $25.804,408 0.71% Martin BrottrudProperties. Commercial $20'587.853 0.5796 Hidden Manna Corporation Commercial $18.588.559 0.51Y6 Nikko Capital Corporation Commercial $12.855.569 0.35Y6 JFShea Company, Inc. Industrial $12/444.848 0.84% Margaret M.Tam Trust Residential $11.818'350 0.32% Lincoln Emerald Pointe Residential ' $11.818.187 0.32Y6 Nugit Maple Santee Partnership Connnneouia| $10.045.029 0.289& TCEP 11 Properties Joint Venture Commercial $9,965,989 0.27% $164,943,610 4.53% Source: L.A.Aoeaaoo 1S84/85Secured & Unsecured Tax Rolls -66- City of Diamond Bar Computation of Legal Debt Margin June 30, 1995 (unaudited) Assessed Valuations: Assessed Value Add Back: Exempt Property Total Assessed Value Legal Debt Margin: Debt Limitation - 15% of Total Assessed Value* Debt Applicable to Limit Total Bonded Debt Less: Special Assessment Bonds Revenue Bonds Available for Repayment of General Obligation Bonds Total Debt Applicable to Limitation Legal Debt Margin The City of Diamond Bar has no bonded indebtedness. Section 43605 of the California Government Code Source: City Finance Department, Los Angeles County Auditor/Controller -67- Table 7 $3,643,892,171 $33,523,553 $3,677,415,724 $551,612,359 $0 $0 $0 $0 $0 $551,612,359 ���x ^�� Diamond �� ="K�=. =U8�00���= Bar Computation of Direct and Overlapping Debt June 30, 1995 (unaudited) Go8er0men Loa Loa Angeles County General Fund Obligations Los Angeles County Pension Obligations Los Angeles County Superintendent of Schoos Certificates of Participation Los Angeles County Flood Control District Los Angeles County Flood Control District Certificates ofParticipation Matno|po|ibanWater District Mount San Antonio Community College District Certificates of Participation Pomona Unified School District Pomona Unified School District Certificates ofParticipation Walnut Valley Unified School District Los Angeles County Sanitation District #21Authority Walnut Valley Water District General Fund Obligations Walnut Valley Water District, I.D. #3 City of Diamond Bar TOTAL GROSS DIRECT AND OVERLAPPING 0]NDEDDEBT % Applicable Debt 01 6/30/95 Less: Loo Angeles County Certificates of Participation (1OOY6self supporting from leasehold revenue on properties in Marina Del Rev Walnut Valley Water District General Fund Obligations TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT 0J98Y6 $583.348 0.798Y6 $16.827.154 0.798Y6 $20.324.064 0J88Y6 $108.370 0.83296 $581.734 0.832Y6 $1.873.622 0.451% $2.827.342 13.559Y6 $1.129,485 26.99296 $14.170.800 26.992% $4.131.128 76.859% $38.057'781 23.471% $7.558.974 64.282% $15.379.469 99.221Y6 $3.105.617 100.000Y6 $ $1.27,434,846 1 $1,075.584 $15.379.469 $110.979.793 (1\Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations Ratios to Assessed Valuation: Direct Debt 0.0096 Total Gross Debt 3.50% Total Debt 3.05% State School Building Repayable eaofO8/3O/B5: $5,759 .. Source: California Municipal Statistics, Inc. City of Diamond Bar Schedule of Insurance In Force June 30, 1995 - !ype of Coverage Limits/Deductibles Insurer Polipy Period � Liability: ' General Liability, Automobile $10.000.000 combined single Unlit Self Insured 07/l/94 -07/l/95 Liability, Bodily Injury, Property limit each occurrence, $26.000.000 Southern California Joint � Damage, Personal Injury aggregate. $20,000 self-insured PovveroInsurance Authohty retention ) Special Liability: Errors and Ommissions.Employ- $1.00.00each occureme. Self Insured 07/1/94-07/1/95 �PraoUcee Injury, Contractual men rg . �2D000OOaggrogoha Retained . . ' Southern Co|��niaJoint 1 Liabi|ityInjury, Bnoadcoet/Pub|icaUon loss of$2O.UO0per oonunanooand Powers Insurance Authority Publication I'ury.Emp|oyeaBenefiba. 2OY6copayment 'Administration Injury, DiooininoUon | Injury } yUl-Risk.including buildings, $1,972,095 limit, deductible of, Zurich Insurance O1/O1/95'O1/O1/S8 contents, garaged vehicles, $5.U0Oper occurrence contractor's equipment, fine arts, ` / rental income and other mis- cellaneous extensions ofcoverage Automobile Physical Damage $S3,521limit, deductible of Zurich Insurance O1/O1/85-01/O1/9O $1.000per occurrence Crime: Public Employee Honesty Blanket $25,000 limit Western Surety 0001/94-0801/95 ~~~ Public Official Bond (Mayor, City $100,000 limit (except City Clerk) Western Surety [8/01/94-{8/01/95 Manager/Treasurer, City Clerk, $25,0O0limit - City Clerk ` Workers'Accounting Manager _Compensation:`_ Work-related injury/illness claims California statutory limit; State Compensation 10/01/94- 10/01/95 for temporary and permanent $1,000,000 employer's liability Insurance Fund disability i ' Source: City Finance Department | | -69- CITY OF DIAMOND BAR Table 10 DEMOGRAPHIC AND MISCELLANEOUS STATISTICAL INFORMATION JUNE 30, 1995 Date of Incorporation...............................................................................................April 18, 1989 Form of Government........................................................................:.................Council-Manager Area.........................:........................................................................................14.9 Square Miles Milesof Streets.......................................................................................................................137 Employees(full-time)................................................................................................................26 Fire Protection (Los Angeles County Consolidated Fire Protection District): Numberof Stations...............::.......:..........................................................................................3 Number of Firemen and Officers.......................................................:.....................................40 Police Protection (Contract with Los Angeles County): Numberof Stations.........................................................................................................:.......:.1 Numberof Officers..................................................................................................................27 Sewers: SanitarySewers...............................................................................................................146.88 StormSewers..................................................................................................:.................31.95 Recreation and Culture: CommunityCenters..............................................................................................................1 Parks.......................................................................................................................................10 Park Acreage (developed)............................................,.........................................:............45.4 Park Acreage (undeveloped)...................................................................................................97 Education: ElementarySchools(K-6).........................................................................................................7 MiddleSchools(6-8)................................................................................................................. 2 Jr. High Schools(7-8)...............................................................................................................1 HighSchools(9-12).............................................................................:......................:.............1 Population:* Percentage Date Population Increase 1989 60,000** - 1990 53,672 -10.55 1991 53,596 - 0.14 1992 53,576 - 0.04 1993 54,315 1*.32 1994 54,507 0.35 1995 54,284 - 0.41 ** Estimate Only * Source: State of California, Department of Finance WEI City of Diamond Bar Table 11 Residential and Commercial Construction Since Incorporation in April, 1989 (Unaudited) Bank Deposits 1988-89 $321,853,000 New Construction $343,605,000 Fiscal Residential (1) Commercial Year Units Value Units Value 1994,95 Not Available 1988-89 Not Available Not Available 1989-90 39 $12,246,600 6 $269,372 1990-91 24 $6,989,816 17 $1,528,280 1991-92 26 $13,566,000 1 $500,000 1992-93 11 $6,757,000 2 $558,000 1993-94 10 $6,053,000 0 $0 1994-95 8 $4,619,400 0 $0 Alterations and Additions Fiscal Residential (1) Commercial Year Unft Value Units YAJM9 1988-89 Not Available Not Available 1989-90 437 $4,085,588 212 $4,036,302 199*0-91 744 $8,868,435 83 $11,361,825 1991-92 638 $10,799,186 68 $3,585,038 1992-93 600 $6,894,000 94 $6,259,900 1993-94 570 $5,781,300 95 $4,839,400. 1994-95 487 $5,649,500 81 $2,454,800 Bank Deposits 1988-89 $321,853,000 1989-90 $343,605,000 1990-91 $377,224,000 1991-92 $381,710,000 1992-93 $371,506,000 1993-94 $379,581,000 1994,95 Not Available (1) Includes multiple dwellings Source: City's Contract Building & Safety Provider, Findley Reports -71- I City of Diamond Bar Table 12 Ratio - Unreserved General Fund Balance to Annual General Fund Expenditures Since Incorporation in April, 1989 (unaudited) General Fund Ratio 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 0.6 Unreserved General Fund 0.4 0.2 Balance $50,915 $1,375,030 $2,200,322 $3,019,852 $3,305,067 $5,677,619 $7,711,454 Annual General Fund Expenditures $798,947 $6,600,559 $8,031,832 $8,208,271 $8,232,941 $9,329,431 $8,241,463 Ratio 0.064 0.208 0.274 0.368 0.401 0.609 0.936 General Fund Ratio 0.8 0.6 0.4 0.2 0 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Fiscal Year Source: City Finance Department -72- Schedule of Credits June 30, 1995 Name Terrence L. Belanger, City Manager Linda G. Magnuson, Accounting Manager Joann M. Gitmed, Senior Accountant Conrad and Associates, C.P.A. Source: City of Diamond Bar Area of Contribution General Overview Letter of Transmittal General Overview Letter of Transmittal Statistical Tables Statistical Tables Financial Statements Notes to Financial Statements -73- Table 13 (This page intentionally left blank) -74-