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HomeMy WebLinkAboutCAFR - FY 1999-00I W Loa PV'M 6r We I I Comprehensive Annual Financial Report Year ended June 30, 2000 Prepared by CITY OF DIAMOND BAR Comprehensive Annual Financial Report Year ended June 30, 2000 TABLE OF. CONTENTS EXHIBIT Page INTRODUCTORY SECTION: Letter of Transmittal i Officials of the City of Diamond Bar xiii Organization Chart xiv Certificate of Award for Outstanding Financial Reporting (CSMFO) xv Certificate of Achievement for Excellence in Financial Reporting (GFOA) xvi FINANCIAL SECTION: Independent Auditors' Report 1 General Purpose Financial Statements: ® Combined Balance Sheet - All Fund Types and Account Groups AA 2 ® Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types BB 4 ® Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types cc 5 ® Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type DD 7 ® Combined Statement of Cash Flows - Proprietary Fund Type EE 8 ® Notes to the Financial Statements 9 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) Supplemental Data: General Fund: • Comparative Balance Sheets • Schedule of Revenue - Budget and Actual, • Schedule of Expenditure - Budget and Actual Special Revenue Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances • State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Proposition A Transit Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Proposition C Transit Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Intermodal Surface Transportation Efficiency Act (ISTEA) Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual A-1 A-2 A-3 27 28 29 B-1 31 B-2 33 B-3 35 B-4 36 B-5 37 B-6 38 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) ® Integrated Waste Management Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ® Air Quality Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ® Bicycle and Pedestrian Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ® Park Fees Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Park and Facility Development 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 ® Citizens Option for Public Safety (COPS) Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ® Asset Seizure Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual _ EXHIBIT Page B-7 39 B-8 40 B-9 41 B-10 42 B-11 43 B-12 44 B-13 45 B-14 46 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) EXHIBIT Page • Landscape Maintenance Districts Funds: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-15 47 Capital Projects Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenditures and Changes in Fund Balances • Grand Avenue Construction Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Capital Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual • Redevelopment Agency Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Internal Service Funds: • Combining Balance Sheet • Combining Statement of Revenues, Expenses and Changes in Retained Earnings • Combining Statement of Cash Flows C-1 49 C-2 50 C-3 51 C-4 52 C-5 53 D-1 55 D-2 56 D-3 57 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) (C EXHIBIT Page General Fixed Assets Account Group: ® Comparative Schedule of General Fixed Assets by Source ® Schedule of General Fixed Assets by Function and Activity ® Schedule of Changes in General Fixed Assets by Function and Activity STATISTICAL SECTION: General Governmental Expenditures by Function General Governmental Revenues by Source Secured Property Tax Levies and Collections Assessed and Estimated Actual Values of Taxable Property Property Tax Rates - All Direct and Overlapping Governments Principal Taxpayers Computation of Legal Debt Margin Computation of Direct and Overlapping Debt Schedule of Insurance in Force Demographic and Miscellaneous Statistical Information Residential and Commercial Construction Ratio - Unreserved General Fund Balance to Annual General Fund Expenditures Schedule of Credits E-1 59 E-2 60 E-3 .61 Table No. 1 62 2 63 3 64 4 65 5 66 6 67 7 68 8 69 9 70 10 71 11 72 12 73 13 74 Deborah H. O'Connor Mayor Eileen R. Ansari Mayor Pro Tem Wen Chang Council Member Carol Herrera Council Member Robert S. Huff Council Member Recycled paper City of Diamond• 21660 E. Copley Drive, Suite 100 - Diamond Bar, CA 91765-4177 November 30, 2000 (909) 860-2489 - Fax (909) 861-3117 . www.CityofDiamondBar.com 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, 2000. 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 respects; 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 (CAFR) 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 principal 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-133, Audits of States Local Governments. and Non -Profit Organizations. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' 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. -i- AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Diamond Bar for its comprehensive annual financial report for the fiscal year ended June 30, 1999. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local f financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last five consecutive years (fiscal years ended 1995, 1996, 1997, 1998 and 1999). We believe our current report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. The City of Diamond Bar has also been awarded the Certificate of Award for Outstanding Financial Reporting by the California Society of Municipal Finance Officers for its comprehensive annual financial report for the last five consecutive years. REPORTING ENTITY AND ITS SERVICES This Comprehensive Annual Financial Report includes all funds and account groups of the City. The City directly provides a limited range of services and contracts for several other services. The City's significant reliance on contracted services has the benefit of reducing expenses to the citizens of the City of Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding to changing economic conditions. Contracted services include police protection, building and safety, street maintenance, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include: community development (which includes planning, 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 services and landscape maintenance), economic development, redevelopment, community relations, grant administration, financial management, and administrative management. All of these activities are included in this report. The Los Angeles County Fire District provides fire protection, which is independent of the City. Funds are collected through property tax bills and are disbursed directly to the Los Angeles County Fire District by the Los Angeles County Tax Collector's Office. Water services -for the City are -provided by the Walnut Valley Water District. -Refuse , - collection is provided by private waste collection companies. Additionally, schools are provided by both the Walnut Valley Unified School District and the Pomona Unified School District. Accordingly, none of these activities are included in this report. 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 59,000, situated among the meandering hills and valleys of Brea Canyon. Many desired services can be found in Diamond Bar's shopping and business centers. Recreational opportunities within the City include more than 70 acres of developed park facilities and an 18 hole public golf course. During the last few years, the City of Diamond Bar's economy has seen a marked improvement. This fiscal year was no exception as illustrated by higher sales tax revenues, new business starts and a slight reduction in office vacancy rates. In addition, this year saw the approval and start of construction of a new housing development. Last fiscal year's construction of four new office buildings has been a catalyst to create interest and the construction of other vacant properties located within the City. This, in addition to several new business commitments, is a signal that the economy in Diamond Bar is improving and will continue to grow. The City's Community Redevelopment Agency saw the implementation of the Redevelopment Plan for the Economic Revitalization Project Area. By investing in the community, the Redevelopment Agency was working to remove blighting conditions within the city's commercial areas and to improve traffic flow on the City's major thoroughfares. Unfortunately, the Redevelopment Agency's Economic Revitalization Project Area plan came under attack by a small number of citizens. It was challenged in court and the plan was upheld. The court's decision was appealed and the favorable ruling was overturned. The City attempted to have the State Supreme Court hear the case. Early in Fiscal Year 2000-2001, the City received the bad news that the Supreme Court would not hear the case, virtually shutting down redevelopment agency activities. For the Year. In the FY99-00 budget, the City of Diamond Bar identified several major programs and projects necessary to meet increased service levels and to prepare the City -Hi- for the future requirements of its residents. The following is a list of the significant activities accomplished this fiscal year. The City Council honored its pledge to improve communications with all citizens and sought public input on several key projects and issues. The City Council appointed citizen advisory task forces on the development of a Community/Civic Center, and the study of the proposed expansion and/or change in client base by the State of California to the Lanterman Developmental Center. These groups held several meetings throughout the year and periodically submitted their findings and recommendations to the City Council for review and possible action. In its continuing effort to serve the citizens of Diamond Bar, the City has been striving to improve and enhance civic and recreational opportunities within the City. As a result, the Community/Civic Center Task Force was formed. The task force with the aid of an architectural firm explored various aspects of creating such a center. After a great amount of consideration, the City Council approved Sycamore Canyon Park as the location for the Community/Civic Center facility. Facilities considered for the future community/civic center include a senior service element, a library, a sports complex with a gymnasium and swimming pool, a city hall and a performing arts center. The first phase to be designed and constructed is a Community/Senior Center. It is .anticipated that this facility will provide much needed supplemental meeting and activity space for the City's active senior citizen organizations as well as provide space for the City's recreational activities. In addition, staff will be pursuing a funding mechanism for the second phase, the library facility. The City's Capital Improvement Program for FY 99-00 included several street rehabilitation and maintenance projects. This included the rehabilitation of two sections of Golden Springs Drive. This included the sections between Brea Canyon Road and the Westerly City Limits and between Grand Avenue and Torito Lane. Water seepage on some of the City's streets has been an ongoing problem. This fiscal year, water seepage problems were addressed and eliminated on Meadowglen Road and Ambushers Street. Design of a project to eliminate seepage on Chinook and San Leandro was initiated. As a part of the ongoing street maintenance program, the City's pavement management plan divided the City into seven slurry seal areas. This fiscal year the cycle was started once again with the slurry sealing of area number one. Transportation and traffic continue to be major sources of concern for the City. The City has continued its popular transit subsidy and Dial -a -Cab programs. The transit subsidy program offers 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. These programs are being funded by Proposition A Transit Funds. -iv- 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 the intersections of Lemon at Lycoming, Golden Springs at Rapidview and Brea Canyon Road at the intersections of Glenbrook, Diamond. Crest and Silver Bullet. The Diamond -Bar Redevelopment Agency contributed to the design of signal improvements for aft additional nine intersections. It is anticipated that these improvements will be made in the near future. This fiscal year saw the approval of a new upscale residential project, which will contain 127 homes on 65 acres. As a part of the development agreement, the City received $1,200,000 from the developer. These funds have been deposited in the City's Parks and Facility Development Fund and will be used to partially fund the development of the Community/Senior Center. The City also received a total of 360 acres in designated open space land as a part of the developer agreement. It is anticipated that this new residential development will be of a great economic benefit to the City through increased property tax valuation, local sales and population. The City Council is extremely interested in addressing the needs and wants of its citizens. Several years ago, the City implemented a parks master plan. One of the components of this master plan was the creation of a skateboard park. This fiscal year, the City conducted several public meetings and received valuable input on desirability, location and design of a new skateboard park. As a result of lots of hard work by the Skateboard Park Committee, the Diamond Bar Skateboard Park was designed and constructed this fiscal year. The dedication and grand opening of the park was attended by more than three hundred people on July 15, 2000. This fiscal year a new Sheriff's Service Center was. opened. The Service Center is conveniently located in the heart of the City provides community information, volunteer opportunities, children's fingerprinting services and law enforcement services. It also provides a convenient place for the Diamond Bar deputies to prepare reports, allowing them to return to the field more quickly. Every ten years, the Federal Government performs a census count. Since 2000 was a census year, there was a special effort made in the City of Diamond Bar to get an accurate population count. Town hall meetings were held, links set up on the City's internet web site, advertising done and discussions at the City Council meetings to promote Census Day 2000. The census was vitally important to the City since many of the State revenue subventions are based on population. The City continued its implementation of an aggressive economic development program. The mainstay of this program has been the marketing of Diamond Bar. The City has and will continue to participate in trade shows in an effort to draw attention to the City's business friendly environment. In addition, another marketing tool being used is the internet. The City's World Wide Web site has a vast amount of useful information about -v- the City, ranging from a community calendar to a site selection area, which has pictures, maps and availability of commercial sites within the City. This fiscal year saw the completion and occupancy of four new office buildings in the Gateway Corporate Center and the addition of several new retail establishments. 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 was 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 were to be based on the actual population, which is estimated to be 59,000. With changes in the State law, the City was able to receive its State subventions based on its incorporation population until December 1999. As a result, the City has incorporated a conservative operating budget to compensate for the anticipated lose in revenues. The goal is to implement revenue enhancement activities and expenditure reduction decisions that will continue to mitigate the impact of this "shortfall". Of major concern, are efforts by the State to reduce municipal revenue resources. These include motor vehicle license fees and gas tax revenues. This along with the taking of revenue that was to "backfill" shortages in property tax revenues lost through Proposition 13, is of a major concern to most California cities. The City of Diamond Bar has joined forces with other cities via various organizations to watch and lobby the State legislature to preserve their future revenue resources. The City Council has selected as its number one goal for FY00-01, the completion and implementation of an Economic Development Strategic Plan. Such a plan will provide a blueprint for how the City hopes to enhance the economic stability of the community, and would include measures for attracting new businesses, retaining existing businesses and providing necessary business assistance. It is anticipated that the plan will also include revitalization ideas for existing commercial development. Internal. Control Structures Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure 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 -vi- derived; (2) the valuation of costs and benefits requires estimates and judgements by management. Budgetary Controls The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. Revisions that alter the total appropriations of any funds are approved by the City Council. Prior year appropriations lapse unless they are re - appropriated 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 $3,864,098. 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 and agency funds 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 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, special revenue, and capital project fund revenues for the fiscal year ended June 30, 2000 and the amount and percentage of increases or decreases in relation to prior year revenues. INCREASE PERCENT PERCENT (DECREASE) INCREASE REVENUES AMOUNT OF TOTAL FROM 1998-99 (DECREASE) Taxes 6,294,104 31.56% • 415,728 7.07% Special Assessments 547,041 2.74% (6,402) -1.16% Licenses, Permits, and Fees 1,666,726 8.36% (480,469) -22.38% Intergovernmental 7,713,344 38.67% 1,177,532. 18.02% Fines & Forfeitures 556,527 2.79% (16,922) -2.95% Charges for Services 1,712,737 8.59% 1,231,489 355.89% Proceeds from Sale of Prop 0 0.00% (6,095,931) -100.00% Investment Income 1,395,785 7.00% 204,480 17.16% Other Revenue 59,443 0.30% (3,866) -6.10% TOTAL 19,945,707 100.00% (3,574,361) Revenues for the 1998-99 fiscal year were $23,520,068 as compared with $19,945,707 for the 1999-00 fiscal year, a decrease of $3,574,361 or 15.2 percent. Although these numbers show a decrease in revenues from the prior fiscal year, in both fiscal years there were extraordinary revenue occurrences. By eliminating these one-time fluctuations, revenues actually increased by $1,321,570 or 7.6 percent. The following paragraphs discuss the changes in each category. There were increases in several of the tax categories. The major increases were in Sales Tax, Transient Occupancy Tax and Real Estate Transfer Tax. The increase in Sales Tax is a sign of an improving economy, and a result of the City's aggressive economic development activities. The improving economy also fueled higher occupancy rates in the City's hotels. Real Estate Transfer Tax increase was due to an improving real estate market as well as the sale of several newly constructed homes. The Licenses, Permits and Fees category shows a significant decrease. This is due primarily to a $563,826 decrease in building, planning and engineering fees. The reason for this decrease was due to the construction of four new office buildings and a new housing tract consisting of 134 houses last fiscal year. There was also a slight decrease in Recreation Program revenues. There was a significant overall increase in Intergovernmental Revenues of $1,177,532. The major component of this increase was the receipt of Federal "transportation funds in the amount of $752,327. These funds were received as a reimbursement for money spent rehabilitating a section of Golden Springs Drive. Transit tax revenue received from the County was up slightly due to an improved economy. Revenues amounting to $475,700 were received as a result of an exchange of Proposition A -Transit money with another City. These funds were used to provide funding for the Community/Civic Center and the creation of a skateboarding facility at Peterson Park. There was a slight overall decrease in Fines and Forfeiture Revenue this fiscal year. Traffic Fines showed a small increase due the emphasis on traffic safety and the issuance of citations within the City. Parking Fines, Impound Fees and False Alarm Fees showed decreases totaling $35,046. The increase in the Charges for Services Category is due to the developer contribution of $1,200,000 mentioned earlier. In addition the City also received traffic mitigation fees from developers as a result of the project approval process. Last fiscal year another category was added to the revenue summary. This category, Proceeds from Sale of Property, was created to account for activities related to the two development and disposition agreements entered into by the Diamond Bar Redevelopment Agency. These two agreements provided that the Redevelopment Age . ncy purchase and resale land to developersThese events were unique to FY98-99 and as such there is no similar revenue received this fiscal year. Investment Income continues to grow as a result of increased cash reserves held by the City of Diamond Bar. The following schedule presents a summary of general, special revenue, and capital project fund expenditures for the fiscal year ended June 30, 2000 and the amount and percentage of increases and decreases in relation to prior year's expenditures. Expenditures for the 1998-99 fiscal year were $22,737,038 as compared with $19,912,848 for the 1999-00 fiscal year, a decrease of $2,824,190, or 12.4 percent. Although these numbers show a decrease, if the extraordinary item from FY98-99 was removed there would be an over all increase of $6,637,823 or a 50% increase. This considerable increase is due to significant capital improvement project activities that occurred during FY99-00. The following paragraphs discuss the changes in each category. The increase in the General Government category was as a result of various increases and decreases between the various divisions within this category. There was an increase of $134,599 in City Attorney expenditures. This was due to litigation against the City related to the Redevelopment Agency as well as litigation brought against the State of California to halt the proposed expansion of the Lanterman Developmental Facility. In addition to higher legal expenditures due to the proposed Lanterman Developmental Facility expansion, there were also related increases in supplies, various operating . expenditures and professional services. There was a reduction in salaries and benefits in the City Manager's division due to staffing vacancies. The City had a municipal election in 1999 causing an increase in the City Clerk's division. Salaries and benefits in the Finance Division showed an increase due to an increase in staffing levels. INCREASE PERCENT PERCENT (DECREASE) INCREASE EXPENDITURES AMOUNT OF TOTAL FROM 1998-99 (DECREASE) General Government 2,868,907 14.41% 370,002 14.81% Public Safety 4,654,187 23.37% (84,188) -1.78% Highway and Streets 909,642 4.57% (277,623) -23.38% Public Works 1,769,956 8.89% 117,432 7.11%. Community Development 1,202,285 6.04% 805,204 302.78% Parks, Recreation & Culture 1,805,489 9.07% 315,781 21.20% Capital Outlay 6,397,292 32.13% 5,192,565 531.02% Cost of Property Sold 0 0.00% (9,462,013) -100.00% Debt Service 305,090 1.53% 198,650 286.63% TOTAL 19,912,848 100.00% (2,824,190) Expenditures for the 1998-99 fiscal year were $22,737,038 as compared with $19,912,848 for the 1999-00 fiscal year, a decrease of $2,824,190, or 12.4 percent. Although these numbers show a decrease, if the extraordinary item from FY98-99 was removed there would be an over all increase of $6,637,823 or a 50% increase. This considerable increase is due to significant capital improvement project activities that occurred during FY99-00. The following paragraphs discuss the changes in each category. The increase in the General Government category was as a result of various increases and decreases between the various divisions within this category. There was an increase of $134,599 in City Attorney expenditures. This was due to litigation against the City related to the Redevelopment Agency as well as litigation brought against the State of California to halt the proposed expansion of the Lanterman Developmental Facility. In addition to higher legal expenditures due to the proposed Lanterman Developmental Facility expansion, there were also related increases in supplies, various operating . expenditures and professional services. There was a reduction in salaries and benefits in the City Manager's division due to staffing vacancies. The City had a municipal election in 1999 causing an increase in the City Clerk's division. Salaries and benefits in the Finance Division showed an increase due to an increase in staffing levels. Even though there was a decrease in Public Safety expenditures, the City Council continued its emphasis on traffic safety issues and crime prevention. The traffic safety emphasis consisted of instituting traffic checkpoints and increased enforcement around the City's schools. The Sheriff's Department's contract costs actually showed an increase of $216,910 due to increased contract rates. Last fiscal year saw a tremendous increase in Building and Safety activity due to the construction of a housing tract and the construction of four office buildings. This fiscal year the Building and Safety activity normalized and therefore showed a decrease of $299,424. This decrease is offset by a corresponding decrease in related revenues. During FY98-99, the City's street and public works expenditures were lower than FY 99-00 due to the timing of several construction projects. Last fiscal year, even though there were several projects budgeted, the timing was such that the contracts did not get awarded until very late in the year. Therefore most of the work was accomplished this fiscal year. The Community Development category was significantly higher this fiscal year for several reasons. The primary increase is due to a $670,000 exchange of Proposition A - Transit Funds for general fund money. The increase was also due an increase in the expenditure of Community Block Grant Funds. Increases in Parks, Recreation, and Culture were due to several different factors. The main reason for the increase was the decision by the City Council to bring the recreation services function in-house. Previously, the City contracted with the City of Brea for recreation services. Expenditures were higher this fiscal year as a result of the transition and initial setup costs. This fiscal year this division also started to create its own recreation activity newsletters and brochures resulting in a related increase in personnel and printing costs. Reflected in this category is the City Millennium Celebration at a cost of $95,134. Park utility and maintenance costs were also higher this fiscal year. As reflected in the numbers, the City's Capital Improvement Program made great strides this fiscal year. As. stated earlier, the City completed several major road improvement projects, traffic signal projects, as well as constructing a skateboard park. Major capital outlay items for FY99-00 included the purchase of two vehicles, upgrade to the document imaging system and equipping new City staff with computers and miscellaneous equipment. Last fiscal year another category was added to the expenditure summary. This category, Cost of Property Sold, was an offset to the Proceeds from Sale of Property category in the revenue summary. It was set up to account for activities related two development and disposition agreements entered into by the Diamond Bar Redevelopment Agency. As such, this expenditure was unique to last fiscal year. Debt Service requirements were increased as a result of the City redevelopment agency's increased indebtedness. Fund Balances The General Fund ended the 1999-00 fiscal year with a fund balance of $19,055,968. t This is an increase of $2,838,768 or approximately 17.5% increase from the balance at June 30, 1999. Of this, $193,323 is reserved for encumbrances. There is $5,693,462 reserved for Advances to the Diamond Bar Redevelopment Agency. In addition, there is $114,104 designated for specific projects and programs, including $101,424 for library service enhancement. This leaves an undesignated fund balance of $13,055,079. Cash Management The City invests temporarily idle funds in accordance with the Government Code and the investment policy approved by the City Council. During FY99-00, funds were invested in the Local Agency Investment Fund (LAIF), which is administered by the State Treasurer's Office and a Money Market Mutual Fund account with Well's Fargo Bank. The City invested in LAIF to the maximum balance of $30,000,000, any available cash over and above the LAN account is invested in the Money Market Mutual Fund. The City manages all of its cash and investments on a pooled basis. Interest earnings are allocated to the various funds based on their share of cash and investment balances. The average yield on investments managed by the City was 5.7%. 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, 1998. The total over -funded pension obligation applicable to the City employees was $545,541 at June 30, 1998. The City's contribution to the system based on actuarially determined requirements was $218,050 for FY99-00. For the three years ended June 30, 1998, 1999 and 2000 the total contribution to PERS was 13.65%, 13.16% and 10.95% 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, 2000, the City of Diamond Bar had no outstanding general obligation bonds.. In fiscal year 1994-95, the City entered into a lease agreement for financing the acquisition of a telephone system in the amount of $22,356 to be paid in sixty monthly installments that ended in March 2000. Risk Management The City of Diamond Bar is a member of the California Joint Powers Insurance Authority (CJPIA) for the purpose of pooling its general liability losses and claims with the approximately 83 other member agencies. Each member agency retains the first $20,000 of each claim. Claims above $20,000 are shared by all the member agencies up to a maximum of $50,000,000 per occurrence. The City has also established a self-insurance internal service fund to cover the City's share of any potential losses not covered by the CJPIA. The City Council established a policy of annually transferring $100,000 to the fund to. create a self-insurance reserve. Policy states that when the reserve reaches $1,000,000, the reserves are deemed to be sufficient. No transfer was necessary this fiscal year, since the reserves reached that milestone in fiscal year 1998-99. The self-insurance. reserve at June 30, 2000 was $1,214,932. Acknowledgements The preparation of this Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the City's Finance Department staff, and through the cooperation of the entire City staff. Each staff member has my sincere appreciation for the contributions made in the preparation of this Report. I would also like to thank our independent auditor, Conrad & Associates L.L.P., for its expertise and advice in the preparation of the City's Comprehensive Annual Financial Report. In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this Report would not have been possible. Sincerely, James DeStefa o Interim City Manager &W WFFICIAILS OF THE CITY OF DIAMOND BAR June 30, 2000 Deborah H. O'Connor, Mayor Eileen R. Ansari, Mayor Pro Tem Wen Chang, Council member Carol Herrera, Council member Robert S. Huff, Council member Terrence L. Belanger, City Manager James DeStefano, Deputy City Manager David A. Doyle, Deputy City Manager Michael Jenkins, City Attorney Lynda Burgess, City Clerk Bob Rose, Community Services Director David G. Liu, Deputy Public Works Director Linda G. Magnuson, Finance Director Lo cz a cz cu M cd CL C W = CZ U) u 0 a 2: 0 0 u >1 o >u - m E Ln u i L tv (D E a) 4- Q) Q—) u r .0 to u- r 0 tn CU w w Ln u 0 -j I cti E bO < < a LA a r- .0 ul !� r- U r - cn > H .2 -,2 —M E .2 < 1 uj 1 ot -j 1 U -j 1 U .2 to 21 O 0 U o -!2 ; 5 'o to cz -- UN C) _ a w 'pa) ad w E w CL Iv (U r '�& " O — u u L) U cn F- = cz E :2 0 tw -M w -0 . -0 -0 E E w:E :E C�. M. 0- clz� wur 'o LU a E co > 0 0 0 U 1 1 1 1 1 1 0 cd CL C W = CZ U) u tn a 2: 0 0 Ln E LI) E u i L tv (D E a) -'a LA U .0 0 V) r 0 z CL CU w w Ln u 0 -j I I I I cd CL C W = CZ 21, U) U) 0 CL %n u C.) cn 0 CL.Lti U r - Q) > 0 CL a to in C") CL Iv (U U cn F- E Q) > 0) wur 'o LU a E co > 0 0 < u u L, u I Certificate of Achievement for Excellence in Financial Reporting Presented to City of Diamond Bar, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. OF NWMB STA CANADA President COVOPAMN STAL Executive Director (This page intentionally left blank) ,F r�4OF, {� Y x l he Dig it nand L ul- CONRADAND CERTIFIED PUBLIC ACCOUNTANTS ASSOCIATES, L.L.P. 1100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92614 (949) 474-2020 Fax (949) 263-5520 Honorable Mayor and City Council City of Diamond Bar i 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, 2000, 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 and the t standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 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, 2000, and the results of its operations and the cash flows of its proprietary fund type for the year then ended in conformity with generally accepted accounting principles. Our audit was performed 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. In accordance with Government Auditing Standards, we have also issued our report dated September 22, 2000 on our consideration of the City of Diamond Bar's internal control over financial reporting and our tests of its compliance with certain provision of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. iso -c . �. September 22, 2000 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 June 30, 2000 Governmental Fund T - es peci apita Assets and other debits General Revenue kiokcts Assets: Cash and investments (note 2) Accounts receivable $15,176,278 170,054 Interest receivable Due from employees Due from other funds 10) 377,860 1891 , (note Due from other governments Prepaid ex enses - 1,029,524 Advances to other funds (note 6) - '5,693,462 Fixed assets (note 3) Other debits: Amount to be provided for retirement of general long-term debt Total assets 449.069 Liabilities, equity and other credits Liabilities: Accounts payable Accrued payroll $ 1,261,998 119667 Retentions payable , - Deferred revenue Due to other funds (note 10) 440,236 828,268 Deposits Due to other governments Compensated -absences 742932 , - pa able (note Obligations under capitdI ease 4) (notes 4 and 5) Advances from other funds (notes 4 and 6) Total liabilities 3,393,101 Equity and other credits: investment in general fixed assets Retained earnings: - Unreserved Fund balances (note 8):,- Reserved Unreserved - designated 5,886,785 114,104.. Unreserved - undesignated 13,055,079 Total equity and other credits - 19,055,968 Total liabilities, equity and other credits 22 449,069 9,592,247 1,841 655,909 10,249,997 997 212,775 6,915 15,200 464,619 699,500 .6 9,926 9,480,562 9 550 48�8 1--0,2-4-94,9-97 1,403,138 .11,921 1,292,887 22-07,946 480,459 249,575 1,683,041 144,844 Proprietary Tv e ntemal— Service 1,129,247 141,046 i,612 32,822 17,795 2,557,919 17,795 76664 139'131 . . ...... (65!'Y768 150,027 2,707,946 See accompanying notes to the financial statements. 2 1,292,932 ,292,932 1,310,727 Account Grows Ueneral Ueneral Fixed Assets Long -Term Debt 11,134,620 11,134,620 11,134,620 11,134,620 11,134,620 5,845,8 5.845,879 152,417 5,693,462 5,845,879 5,845,879 01 Totals emorandum Onl 27,300,910 26,257,407 284,982 09 982 389,781 083 1,292,887 1,177,314 1,685,433 1,809,565 5,693;462 4,556,753 11,167,442 7,008,196 5,845,879 4,703,853 53,698,238 46,116.643 1,973,027 126,582 264,775 440,236 1,292,887 2,425,973 144,844 152,417 5,693,462 12,514,203 11,134,620 1,292,932 6,033,375 9,733,797 12,989,311 41.184,035 53,698.238 1,572,221 122,670 17,126 250,752 1,177,314 2,231,483 151,474 143,049 4,051 4.556,753 10,226,893 7,008,196 1,100,520 5,269,654 11,175,416 11,335,964 35,889,750 46,116,643 lKalso Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended June 30, 2000 Special Capital(Memorandum Totals Onl General Revenue Projects 2000---f91 Revenues: Taxes $ Special assessments 6,294,104 - - 547,041 - -6,294,104 547,041 5,878,376 553,443 Licenses, permits and fees 1,575,501 - 91225 1,666,726 2,147,195 Intergovernmental 3,629,212 3,884,132 200:000 7,713,344 6,535,812 Fines and forfeits 556,527 - - 556,527 573,449 Charges for se�i es - 1,712,737 1,712,737 481,248 Proceeds from ,e of property - - - - 6,095,931 Investment income 760,874 570,064 64,847 1,395,785 1,191,305 Other revenues - 54,443 - 5,000 . .... ..... . , 59,443 63,309 Total revenues 12,870,661 6,713,974 361,012 19,945,707 23,520,068 Expenditures: Current: Generalgovernment Public safety. 2,868907 4,638:999 - 15,188 - - 2,868,907 4,654,187 2,498,905 4,738,375 Highway and streets 909642 - 909,642 1,187,265 Public works Community development 1,188,335 581:621 859,818 -1,769,956 342,467 1,202,285 1,652,524 397,081 Parks, recreation and culture Capital outlay 1,713,011 137,287 92,478 299,623 - 5,960,382 1,805:489 6,3972 92 1,489,708 1,204,727 Cost of property sold - - - - 9,462,013 Debt service: Interest - - 305,090 305,090 106,440 Total expenditures 10,546,539 2,758,370 6,607,939 19,912,848 22,737,038 Excess (deficiency) of revenues over (under) expenditures 2,324,122 3,955,604 (6,246,867 32,859 783,030 Other financing sources (uses): Operating transfers in Operating transfers out 868,722 (354,076) - (5,472,150) 4,825,014 5,693,736 (5,826,226) 2,076,231 (2,235,696) Proceeds of advances - 1,13 709 1,136,709 3,815,227 Total other financing sources (uses) 514,646 (5,472,150) 5,961,723 1,004,219 3,655,762 Excess (deficiency) of revenues and other financing sources over (under) expeflditures and other financing uses 2,838,768 (1,516,546) (285,144) 1,037,078 4,438,792 Fund balances at be* * of year, as restated note I2) 16,217,200 11,067,034 435,171 27,719,405 23,342,242 Fund balances at end of year $19,055,968 9,550,488 150,027 28,756,483 27.781,034 See accompanying notes to the f mancial statements. 4 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budgef and Actual Revenues: Taxes Special assessments Licenses, permits and fees Intergovernmental Fines and forfeits Charges for services Proceeds from sale of property Investment income Other revenues Total revenues Expenditures: Current: Generalovernment Public saety Highways and streets Public works Community development Parks, recreation and culture Capital outlay Cost of property sold Debt service: Interest Total expenditures Excess (deficiency of revenues over (un er) expenditures Other financing sources (uses): All Governmental Fund Types Year ended June 30, 2000 General Budget Actual v anance Favorable (Unfavorable) $ 5,799,000 6,294,104 495,104 1,539,480 3,028,830 .1,575,501 3,629,212 36,021 600,382 377,500 556,527 179,027 656,000 49,415 760,874 54,443 104,874 5,028 11,450,225 12,870,661 1,420,436 3,273,819 4,709,175 2,868,907 4,638_999 404,912 70,176 1,645,216 1,188,335 456,881 1,992,303 1,713,011 279,292 227,301 137,287 90,014 11,847,814 10,546,539 1,301,275 (397,589) 2,324,122 2,721,711 Operating transfers in 1,092,600 Operating transfers out (1,144,000) Proceeds of advances - Total other financing sources (uses) (51,400) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (448,989) Fund balances at beinning of year, as restated (note 1 16,217,200 Fund balances (deficit) at end of year $15,768,211 868,722 (223,878) (354_076) 789,924 514,646 566,046 2,838,768 3,287,757 16,217,200 1,9055:968 3.287,757 See accompanying notes to the financial statements. W Special Revenue EXHIBIT CC Capital Proiects 15,188 909;642 ananc Favorable Budget Actual (Unfavorable) 548,652 547,041 (1,611) 4,181,319 3,884,132 (297,187) 1,732,000 1,712,737 (19,263) 517,500 570,064 52,564 6,979,471 6,713,974 2§1497) EXHIBIT CC Capital Proiects 33,865 932,310 15,188 909;642 v anance Favorable Budget Actual (Unfavorable) 565,000 91,225 (473,775) 200,000 200,000 _ 167,740 419,650 65,000 65,000 - 5,960_382 5,730_249 765,000 361,0724( 03,92 33,865 932,310 15,188 909;642 18,677 22,668 - - - - - - 607,252 846,974 581,621 859,818 25,631 (12,844) - 572,920 - 342,467 - 230,453 167,740 419,650 92,478 299,623 75,262 120,027 11,690_631 5,960_382 5,730_249 _ - - 305,090 305 090 3,007,791 2,758 ,370 249,421 12,263,551 6 607,939. 5655,612 3 971 , 680 3 955 604 , (16'076 (11,498,551) ( 6 ,246,867, 5251,68-4 - 9,044,032 4,825,014 (4,219,018) (9,281_632) (5,472,150) 3,809_482 1,592,306 1,136,709 455 597 . 9 2, 81,632 X5,472,150 3,809,482 10,636,338 5,961,723 4 65 , 74,615 i l (5,309,952) (1,516,546) 3,793,406 (862,213) (285,144) 577,069 11,067,034 11,067,034 - 435,171 435,171 - 5,757,082 9,550,488 3,793,406 - 427,04 150,027 577,069 6 CITY OF DIAMOND BAR EXHIBIT DD Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - Internal Service Fund Type Year ended June 30, 2000 Operating revenues: Insurance deposits Total operating revenues Operating expenses: Insurance premiums Depreciation Total operating expenses Operating income (loss) Non-operating revenues: Investment income Total non-operating revenues Income (loss) before operating transfers Operating transfer in Total operating transfers Net income (loss) Retained earnings at beginning of year Retained earnings at end of year 2000 1999 $ 61,790 _61,790 52,491 284,400 20 ,_00 - 54,491 284,400 7,299 _J284 400 52,623. 49,604 _52,623 49,604 59,922-J23 �796 132,490 159,465 132,490 159,465 192,412 (75,331) 1,100520 1,175 ,851 1 292 932 1,100 520 See accompanying notes to the financial statements. 7 CITY OF DIAMOND BAR Combined Statement of Cash Flows — Internal Service Fund Type Year ended June 30, 2000 I` �. See accompanying notes to the financial statements. 8 2000 1999 Cash flows from operating activities: Insurance deposits $ 61,790 - Insurance payments2( 26,9181( 53,27 Net cash provided by (used for) operating activities1_ ( 65,128, _ (153,276) Cash flows from noncapital financing activities: Cash transferred from other funds 132,490 159,465 (! Net cash provided by noncapital financing activities 132,490 159,465 Cash flows from investing activities: Interest received from investment 52,623 49,604 Purchase of equipment 17 027 - Net cash provided by investing activities 35,596 49004 i Net increase in cash and cash equivalents 2,958 55,793 Cash and cash equivalents at beginning of year 1,126,289 1,070,496 Cash and cash equivalents at end of year $1,129,247 1,126.289 Reconciliation of net operating income to net cash provided by (used for) operating activities: Operating income (loss) $ 7,299 (284,400) Adjustments to reconcile operating income to net cash provided by (used for) operating activities: Depreciation j (Increase) decrease in accounts receivable 2,000 (141,046) (Increase) decrease in prepaid insurance (7,612) 107,096 (Decrease) increase in accounts payable (25,7 24,028 Net cash provided by (used for) operating activities165.128) 153 27 Noncash investing, capital and financing activities: During the fiscal year ended June 30, 2000, there were no noncash investing, capital or financing activities. I` �. See accompanying notes to the financial statements. 8 Notes to the Financial Statements Year ended June 30, 2000 (1) Summary of Significant Accounting Policies (a) Description of the Reporting Entity The City of Diamond Bar (City) 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. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an 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. All of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are reported with the interfund data of the primary government. The following organization is considered to be a component unit of the City: Diamond Bar Redevelopment Agency The Diamond Bar Redevelopment Agency (Agency) was established on February 6, 1996 pursuant to the State of California Health and Safety Code Section 33000 entitled "Community Redevelopment Law". Its purpose is to prepare and carry out plans for improvements, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Diamond Bar. Even though it is legally separate, it is reported as if it were part of the City because the City Council also serves as the governing board of the Agency. Upon completion, separate financial statements of the Agency can be obtained at City Hall. 9 Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Fund Accounting ' The basic accounting and reporting entity is a "fund." A fund is defined as an independent fiscal and accounting entity with a self -balancing set of accounts, recording resources, related liabilities, obligations, reserves and equities 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. 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. luge-JUNIN• ; 1►I� The City applies all applicable GASB pronouncements in accounting and reporting for its proprietary operations as well as the following pronouncements issued on or before November 30, 1.989, unless these pronouncements conflict with or contradict GASB pronouncements: Financial.; Accounting Standards Board (FASB) Statements and Interpretations, Accounting. Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedures. Proprietary funds include the following fund type: 10 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) Summary of Significant Accounting Policies, (Continued) 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. 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 the general fixed assets account group at their estimated fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of the future minimum lease payments. 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 Long -Term Debt Account Group The General Long -Term Debt Account Group is used to account for all long-term debt of the City, except debt 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. 11 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) The proprietary (internal service) fund types are accounted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types report increases (revenues) and decreases (expenses) in total economic net worth. 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. The accrual basis of accounting is utilized by the proprietary funds. Revenues are recognized when they are earned and expenses are recorded when the related liability is incurred. Unbilled service receivables, if material, have been reflected in the financial statements. (d) Budgetary Data The City adopts an annual budget prepared on the modified accrual basis for all of its governmental funds. Revisions that alter the total appropriations of any funds must be 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 $3,864,098. 12 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (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 balances for governmental fund types. (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) Cash and Investments Investments are reported in the accompanying balance sheet at fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for $760,874 of investment income (associated with funds not legally required to receive pooled investment income) that has been assigned .to and recorded as revenue of the general fund, as provided by California Government Code Section 53647. (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, and have an original maturity date of 3 months or less. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of Diamond Bar. 13 CITY OF DIAMOND BAR Notes to the 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, 2000. The County of Los Angeles assesses, bills, and collects property taxes for the City. 0) 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. In governmental fund types, the cost of vacation and sick leave benefits is recognized when payments are made to employees. A long-term liability of $152,417 of accrued benefits has been recorded by using the vesting method in the long-term debt account group representing the City's commitment to fund such costs from future operations. (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) Postemployment Benefits The City does not provide postemployment benefits for its employees. (other than pension benefits) (n) Property Taxes Under California law,property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of Diamond Bar accrues only those taxes which are received within 60 days after year end. 14 Notes to the Financial Statements (Continued) Summary of Significant Accounting Policies, (Continued) gm c - (n) Property Taxes, (Continued) The property tax calendar is as follows: Lien Date: Levy Date: Due Date: Delinquent Date: March I July 1 First Installment - November 1 Second Installment - February 1 First Installment - December 11 Second -Installment - April 11 Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are as follows: -December 10 30% Advance January 16 Collection No. I April 10 10% Advance May 15 Collection No. 2 July 31 Collection No. 3 (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 the related assets are reported in the general 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 us I eiful 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) Proprietary Funds Fixed Assets Fixed assets of the City's proprietary funds (i.e., Equipment Replacement Fund) are recorded at historical cost or estimated fair market value at the date of contribution. 15 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (p) Proprietary Funds Fixed Assets, (Continued) Depreciation has been provided over the estimated useful life using the straight- line method. The estimated useful lives are as follows: Automobile Equipment 5 Years (q) 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. (r) 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. t (2) Cash and Investments Cash and investments held by the City at June 30, 2000 consisted of the following: Imprest cash on hand $ 300 Deposits 1,417,227 State Treasurers investment pool 24,912,483 Money market mutual fund 97090 l Total $27,300,910 16 CITY OF DIAMOND BAR. Notes to the 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: Medium term corporate notes. Demand deposits with financial institutions Passbook savings accounts Certificates of deposit . U.S. Treasury bills and notes Bankers' acceptances Commercial paper State Treasurer's Investment Pool Repurchase Agreements Negotiable certificates of deposit Money market funds Federal Agency Securities 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 institution's trust department or agent in the City's name. Category 2 also includes deposits collateralized by an interest in an undivided collateral pool held by an authorized Agent. 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. ;17 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (2) Cash and Investments, (Continued) Deposits held by the City as of June 30, 2000 are classified in risk categories as follows: Category Bank Form of Deposit 1 2 3 Balance Amount Demand deposits $100,000 201,510 - 301,510 353,176 Certificate of deposit ' 100,000 964,051 - 1,064,051 1,064.051 Total deposits &200,000 1,165,561 - 1,365,561 1.417.227 Investments held by the City as of June 30, 2000 are not classified by custodial risk because they do not represent a direct investment in securities. Carrying Amount Investments held by City not subject to categorization: Investment in State Treasurer's Investment Pool $24,912,483 Money market mutual fund 970,900 Total investments $25.883,383 The carrying amount of all investments in the above table is at fair value. The City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is the state treasurers investment pool, that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the -accompanying financial statements at amounts based upon the City's pro -rata share of the fair value of the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage=backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. 18 Notes to the Financial Statements (Continued) (3) Fixed Assets Internal Service Machinery and equipment A summary of changes in general fixed assets follows: Less accumulated depreciation (2,000 Balance at Balance at (4) General Long -Term Debt July 1, 1999 Additions Deletions June 30, 2000 Land $1,569,898. 3,600,000 5,169,898 Buildings 1,159,345 City: 1,159,345 Improvements other than Compensated absences payable $ 143,049 9,368 - .152,417 buildings 2,915,351 - 4,051 - 2,915,351 Vehicles and equipment 1,164,874 164,141 .1,329,015 Furniture and fixtures 198,728 26,963 225,691 Construction in progress - 335,320 335,320 Total $7,008 l96 4,126,42. 11,134,62-0- A summary of proprietary type fixed assets at June 30, 2000 follows: 19 Internal Service Machinery and equipment $ 34,822 Less accumulated depreciation (2,000 Total 32 822 (4) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 2000 were as follows: Balance at Balance at July l,1999 Additions -Retirements June 30,2000 City: Compensated absences payable $ 143,049 9,368 - .152,417 Obligations under capital lease 4,051 - 4,051 - Redevelopment Agency: Advances from other funds 41556,753 1,136,709 5,693,462 Total 4,051 5,845,879 19 AUW• • � C M-1 Notes to the Financial Statements (Continued) (5) Obligations Under Capital Lease 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 ended in March 2000. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has 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. (6) Advances From/to Other Funds During the fiscal year ended June 30, 2000, the General Fund has advanced a total of $1,136,709 to the Redevelopment Agency Capital Projects Fund for various start up costs. The following represents a summary of these transactions: Balances at Balances at July 1, 1999 Proceeds Repayments June 30, 2000 Agency expenditures incurred by the City $4,556,753, 1,136,709 Repayment of advances is not required until funds become available to the Agency. Interest accrues on advances at the average daily rate earned on investments held in the State Treasurer's investment pool. (7) Obligations Under Operating Leases The City leases building and office facilities under noncancelable operating leases. The total costs for such leases were $251,588 for the year ended June 30, 2000. The future minimum lease payments for the lease of building and office facilities are as follows: Year ending June 30 2001 $248,288 2002 260,915 2003 14,700 2004 14,700 2005 12,250 Total S550853 20 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) 8) Reserves and Designations of Fund Balances 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, 2000 consisted of the following reserves and designations: Special Capital Total General Fund Revenue Projects (Memorandum Only) Reserved for: Encumbrances $ 193,323 69,926 76,664 339,913 Advances to the Diamond Bar Redevelopment Agency 5,693,462 5,693,462. 5,886,785 69,926 76,664 6,033,375 Unreserved: Designated for: Specific projects and programs 114,104 9,480,562 139,131 9,733,797 Undesignated 13,055,079 (65,768 12,989,311 13,169,183 9,480,562 73,363 22,723,108 Total fund balances$19,055,968 2.5� 1�0 027 28 (9) City Employees Retirement Plan Plan Description The City of Diamond Bar contributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee defined benefit pension plan. PERS provides retirement, disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of PERS' annual financial report may be obtained from its executive office: 400 "P" Street, Sacramento, California 95814. CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) 9) City Employees Retirement Plan, (Continued Funding Policy Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf.and for their account. For the year ended June 30, 2000, the amount contributed by the City on behalf of the employees was $140,829. The City is required to contribute at an actuarially determined rate calculated as a percentage of coveredpayroll. The employer contribution rate for the year ended June 30, 2000 was 3.954% for miscellaneous employees. Police and fire protection services are contracted services from outside agencies. Accordingly, no contribution is required for police and fire protection services. Benefit provisions and all other requirements are established by state statute and city contract with employee bargaining groups. Annual Pension Cost (APC) For the year ended June 30, 2000, the City's annual pension cost (employer contribution) of $77,221 for miscellaneous employees was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1998, actuarial valuation using the entry age normal actuarial cost method. Paragraph 9 of GASB No. 27 requires that the annual required contribution reported for the current year should be based on the results of an actuarial valuation performed as of a date not more than 24 months before the beginning of the employer's fiscal year. Paragraph 22 of GASB Statement No. 27 requires that agent employers also disclose actuarial information for the most recent actuarial valuation. An actuarial valuation as of June 30, 1999 has not yet been completed and made available by PERS to the City. The actuarial assumptions included (a) 8.25% investment rate of return (net of administrative expenses), (b) projected annual salary increases that vary by duration of .service, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of 3.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a four-year period (smoothed market value). PERS' unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. PERS has combined the prior service unfunded liability and the current service unfunded liability into a single initial unfunded liability. The single funding horizon for this initial unfunded liability is June 30, 2019. Miscellaneous Employees Three -Year Trend Information Annual Pension Cost Percentage of Net Pension Fiscal Year Annual Contribution) APC Contributed Obligation 6/30/98 $95,149 100% $0 6/30/99 92,239 100% 0 6/30/00 77,221 100% 0 22 Notes to the Financial Statements (Continued) (9) City Employees Retirement Plan, (Continued) Required Supplementary Information Entry Age Normal Actuarial Unfunded Annual UAAL as Actuarial Accrued Value Liability/ Funded Covered a% of Valuation Date Liability of Assets (Excess Assets) Status Payroll Payroll 6/30/96 $1,149,112 $1,260,660 $(111,548) 109.7% $1,306,702 (8.5370/.) 6/30/97 1,334,707 1,656,895 (322,188) 124.1% 1,411,740 (22.822%) 6/30/98 1,661,909 2,207,450 (545,541) 132.8% 1,392,605 (39.174%) (10) Due From and To Other Funds Current interfund receivables and payables balances at June 30, 2000 are as follows: Due Due from to Other Funds Other Funds General fund $ - 828,268 Special revenue funds: State gas tax - 32,164 ISTEA - 394,936 Park and facility development - 3,541 Community development block grant - 33,978 Capital projects funds: Capital improvement 561,106 - Redevelopment agency 731,781 - Total $1,292,887 1,292,887 (11) Claims and Judgments The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 84 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self- insured losses, to purchase excess insurance or reinsurance, and to arrange for group - purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9 - member Executive Committee. 23 Notes to the Financial Statements (Continued) (11) Claims and Judgments, (Continued) (a) City's Participation in Self -Insurance Programs of the Authority General Liability The City pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $20,000 of each occurrence is charged directly to the City; costs from $20,001 to $500,000 are pooled based on a members share of costs under $20,000; costs from $500,001 to $5,000,000 are pooled based on payroll. Costs of covered claims above $5,000,000 are currently paid by reinsurance. The protection for the City is $50,0.00,000 per occurrence and $50,000,000 annual aggregate. Property Insurance The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City's property is currently insured according to a schedule of covered property submitted by the City to the Authority. Total all-risk property insurance coverage is $100,000,000 per occurrence. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Fidelity Bonds The City purchases blanket fidelity bond coverage in the amount 'of $1,000,000 with a $5,000 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments. (c) Adequacy of Protection During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 24 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (12) Restatement of Beginning Fund Balances The accompanying financial statements reflect an adjustment which resulted in a restatement of beginning fund balance of the COPS Fund in the Special Revenue Fund. (a) The City has decreased its beginning COPS fund balance (a special revenue fund) for the over -accrual of revenue for the Local Law Enforcement Block Grant. Special Revenue Fund Type Fund balance as previously reported, June 30, 1999 $11,128,663 (a) Adjustment to the over -accrual of revenue (61,629) Fund balance as restated, July 1, 1999 $11.067,034 (13) Individual Fund Disclosures (A) Expenditures exceeded appropriations in individual funds for the year ended June 30, 2000 as follows: Excess Budget Actual Expenditures Special Revenue Funds: Community Development Block Grant Fund176,974 189,818 1.844 (B) Deficit fund balances at June 30, 2000 were as follows: Fund Balance Deficit Capital Projects Funds: Capital Improvement Fund 65 768 The deficit in the Capital Improvement Fund will be funded by future year allocations from Los Angeles County. (14) 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. i 25 (This page intentionally left blank) GENERAL FUND To account for all of the general revenue of the City not specifically levied or collected for other City funds and for expenditures related to rendering the general services provided by the City. CITY OF DIAMOND BAR General Fund Comparative Balance Sheets June 30, 2000 la.m.11:311M Liabilities and fund eaui Liabilities: Accounts payable 2000 1999 Assets Accrued payroll 119,667 Cash and investments $15,176,278 12,766,083 Accounts receivable 170,054 259,729 Interest receivable 377,860 304,685 Due from employees 1,891 9,490 Due from other funds -76,635 548,442 Due from other governments 1,029,524 1,126,947 Advances to other funds -- 5,693,462 4,556,753 Total assets 22 449,069 ,322 191,00 — Liabilities and fund eaui Liabilities: Accounts payable $ 1,261,998 1,220,177 Accrued payroll 119,667 117,106 Retentions payable - 300 Deferred revenue 440,236 144,824 Due to other funds 828,268 852,273 Deposits --- 742,932 548,442 Total liabilities 3,393,101 2,883,122 Fund equity: Reserved for: Debt service - 4,051 Encumbrances 193,323 209,713 Advances to the Diamond Bar Redevelopment Agency 5,693,462 4,556,753 Unreserved: Designated for: Specific projects and programs 114,104 110,719 Undesignated 13,055,079 11,335,964 Total fund equity 19,055,968 16,217,200 Total liabilities and fund equity S22,449,069 19.100,322 �-27 CITY OF DIAMOND BAR General Fund Schedule of Revenues - Budget and Actual Year ended June 30, 2000 Taxes: Real estate transfer tax Sales and use tax Franchise fees Transient occupancy tax Property tax allocation Total taxes Licenses, permits and fees Intergovernmental: Motor vehicle in lieu tax Homeowners exemption -Off highway tax Grants Total intergovernmental Fines and forfeits Investment income Other revenues: Rental income Donations Miscellaneous Total other revenues Total revenues Budget Actual $ 190,000 269,390 2,500,000 2,814,441 650,000 684,684 380,000 480,160 2.079,000 2,045.429 5.799,000 6,294,104 1,539,480 1,575,501 2,550,000. 3,142,078 30,000 33,341 1,800 1,148 447,030 452,645 3,028 830 3,629,212 377,500 556,527 656,000 760,874 30,000 40,438 3,915 4,240 15,500 9,765 49.415 54.443 $11,450,225 12,870,661 28 .A M 9M Variance - Favorable 1999 (Unfavorable) Actual 79,390 215,153 314,441 2,666,743 34,684 667,268 100,160 338,725 (33,571) 1,990,487 495,104 5,878,376 36,021- 2,145,623 592,078 3,309,862 3,341 34,171 (652) 2,074 5,615 - 600,382 3,346,107 179,027 573,449 104,874 596,019 10,438 27,796 325 4,149 (5,735 29,364' 5,028 61,309 1,420,436 12,600,883 10.14:11 CITY OF DIAMOND BAR General Fund Schedule of Expenditure- Budget and Actual Year ended June 30, 2000 29 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual General government: City Council $ 158,570 155,273 3,297 155,767 City Manager 372,040 371,652 388 419,538 City Clerk 270,850 245,429 25,421 202,118 Finance 287,100 265,045 22,055 224,212 City Attorney 464,348 397,537 66,811 262,938 Planning 486,987 445,476 41,511 378,279 Community development 62,950 43,671 19,279 General government, 762,554 643,053 119,501 516,787 Communication and marketing 408,420 301,771 106,649 339,266 Total general government 3,273,819 2,868,907 404,912 2,498,905 Public safety: Law enforcement 4,169,300 4,090,001 79,299 3,872174 Fire 7,360 7,359 1 71,359 Building and safety 428,000 448,101 (20,101) 747,374 Animal control 66,000 65,244 756 61,927 Emergency preparation 38,515 28,294 10,221 26,512 Total public safety 4,709,175 4,638,999 70,176 4,715,346 Public works 1,645,216 1,188,335 456,881 1,224,045 Parks, recreation, and culture 1,992,303 1,713,011 279,292, 1,464,357 Capital outlay 227,301 137,287 90,014 361,018 Total expenditures $11,847,814 10,54609 1,301,275 10,263,671 29 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 thirteen Special Revenue Funds: State Gas Tax Fund - To account for state gasoline taxes received under Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highways Code. State law requires that these revenues be utilized solely for street related purposes. j Proposition A Transit Fund - To account for the receipt and expenditure of the City's share of the %z 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. Intermodal Surface Transportation Efficiency Act (ISTEA) Fund - To account for the receipt and disbursement of funds received under the Federal Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 program. This program is administered by the State of California Department of Transportation for improvement of streets and roadways. Integrated Waste Management Fund - To account for revenues and expenditures related to the j City's waste reduction efforts as related to AB939. I' 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. Bicycle and Pedestrian Fund - To account for revenues and expenditures related to the receipt of state funds allocated for the purpose of the construction of bike and pedestrian paths. Park Fees Fund - To account for revenues received and expenditures made for park development and improvement. The primary source of revenue is park development fees collected from developers under the State of California's Quimby Act. Park and Facility Development Fund - To account for the development and enhancement of the City's parks. Community Development Block Grant Fund - To account for the City's allotment of CDBG funds from the federal government via the County of Los Angeles Community Development Commission. These funds are used to fund community development programs and projects benefiting low and moderate income citizens. Citizens Option for Public Safety Fund (COPS) - To account for COPS grants received from both the state and federal government. The purpose of these funds are to enhance the City's public safety budget and to fund special public safety related projects. Asset Seizure Fund - To account for Narcotics Asset Forfeiture funds received from the federal government. It is required that these funds be used to enhance drug and law enforcement activities. Landscape Maintenance 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. 30 CITY OF DIAMOND BAR Special Revenue Funds Combining Balance Sheet June 30, 2000 Integrated Bicycle State Prop. A Prop. C Waste Air Quality and Gas Tax Transit Transit 1STEA Management Improvement Pedestrian Assets Cash and investments $2,065,072 1,542,295 1,391,095 - 273,027 153,748 - Accounts receivable - - - - 1,841 l Due from other governments 102,248 - - 394,936 16,602 Total assets _$2:167.Q _1?� 4224�93� —� 170 X54 Liabilities and fund balances Liabilities: Accounts payable $ - 106,094 - - 13,348 722 - Accrued payroll - 2,252 - _ 1,144 _ Retentions payable Due to other funds 32,164 - - 394,936 Due to other governments Total liabilities 32,164 108,346 394,936 14,492 722 Fund balances: Reserved for: Encumbrances - - - 15,441 26,163 - Unreserved: Designated for: Specific projects and programs 2,135,156 1,433,949 1,391,095 244,935 143,465 Total fund balances 2,135,156 1,433,949 1,391,095 260,376 l 169,628 Total liabilities and ( fund balances $21Q j 5 QQ 394.93„¢� 170.350 l EXHIBIT B-1 Park and Community Landscape Park Facility Development Asset Maintenance Totals Fees Development Block Grant COPS Seizure District 2000 1999 - 2,434,653 - 185,819 338,195 1,208,343 9,592,247 10,901,601 _ - - - - - 1,841 25,253 11.609.42 62,466 65,026 14,631 655,909 682,618 4 5 " ? _�� J1 - 11,038 4,791 - 76,782 212,775 133,896 2,250 - - 1,269 6,915 5,564 _ - 15,200 - - - 15,200 - - 3,541 33,978 - - - 464,619 325,041 16,308 3,541 62,466 4,791 78,051 699,509 480,809 - - - 28,322 69,926 203,097 2,431,112 ... 246,054 338,195 1,116,601 9,480,562 10,925,566 2,431,112 246,054 338,195 1,144,923 9,550,488 11,128,663 l "_� 0� .249.922 11.609.42 .:32 CITY OF DIAMOND BAR Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2000 33 Integrated Bicycle State Prop. A Prop. C Waste Air Quality and Gas Tax • Transit Transit ISTEA Management Improvement Pedestrian Revenues: Special assessments $ - - Intergovernmental 1,165,503 698,687 581,145 752,327 41,270 64,382 20,417 Charges for services - 436,530 - - 69,201 - _ Investment income 167,296 88,294 101,710 - 13,343 8,659 1,330 Other revenues Total revenues 1,332,799 1,223,511 682,855 752,327 123,814 73,041 21,747 Expenditures: Current: Public safety Highways and streets - 909,642 - _ _ _ _ Public works - - - - 18,947 - Community development - 670,000 Parks, recreation and culture - 19,927 - - 72,551 Capital outlay 85,161 Total expenditures 1,599,569 - 72,551 104,108 Excess (deficiency) of revenues over (under) expenditures 1,332,799 (376,058 682,855 752,327 -51,263 (31,067 21,747 Other financing sources (uses): Operating transfers out (2,611,283) 141 8611 331 763 752 3273( 6,261) Total other financing sources (uses) (2,611,283 (141,861 1 331763 752 3273( 6,261) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (1,278,484) (517,919) (648,908) - 51,263 (31,067) (14,514) Fund balances at beginning of year, as restated 3,413,640 1,951,868 2,040,003 209,113 200,695 14,514 Fund balances at end of year 2 3 4 1.39 .095 260.376 169.628 33 Park and Community Park Facility Development Fees Development Block Grant COPS - 365,914 194,487 7,006 1,200,000 - - 4,228 93,094 - 13,277 11,234 1,293,094 365,914 207,764 12,651 189,818 - 196,000 18,462 196,000 189,818 31,113 Landscape Asset Maintenance Seizure Districts 547,041 18,501 60,332 18,501 607,373 2,537 - 562,674 2,537 562,674 EXHIBIT B-2 Totals 2000 1999 547,041 553,443 3,884,132 3,189,705 1,712,737 481,248 570,064 560,103 (139,19 2,000 6,713,974 4,786,499 15,188 23,029 909,642 752,555 581,621 425,746 859,818 136,980 92,478 25,351 299,623 36,808 2,758,370 1,400,469 11,234 1,097,094 176,096 176,651 15,964 44,699 3,955,604 3,386,030 182 3899( 6,994) (176,09 (139,19 (3,982 (5,472,150 1 945 338 (182,389) (96,994 (176,096 (139,19 (3,982) - (5,472,150) (1,945,338) (171,155) 1,000,100 - 37,457 11,982 44,699 (1,516,546) 1,440,692 171,155 1,431,012 208,597 326,213 1,100,224 11,067,034 9,687,971 34 35 CITY OF DIAMOND BAR EXHIBIT B-3 State Gas Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Variance - Budget Actual Favorable (Unfavorable) 1999 Actual Revenues: Intergovernmental Investment income $1,351,105 1,165,503 (185,602) 1,339,479 150,000 167,296 17,296 164,402 Total revenues 1,501,105 1,332,799 (168,306 1,503,881 Excess of revenues over expenditures 1,501,105 1,332,799 J168,306 1,503,881 Other financing sources (uses): Operating transfers out (3,968,800 (2,611,283 1,357,517 791 541 Total other financing sources (uses) _Q,2§8 8.00) 2611,283 1,357,517 (791,541) Excess (deficiency) of revenues over (under) expenditures and other financing uses (2,467,695) (1,278,484) 1,189,211 712,340 Fund balances at beginning of year 3,413,640 3,413,640 - 2,701,300 Fund balances at end of year $945,945 2 135,156 1,189,211 3,413,640 35 36 EXHIBIT B-4 CITY OF DIAMOND BAR. Proposition A Transit Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 668,100 698,687 30,587 637,016 Charges for services ... 427,000 436,530 9,530 393,824 Investment income 90,000 88,294 (1,70 96,676 Total revenues 1,185,100 1,223,511 38,411 1,127,516 Expenditures: Current: Highways and streets 932,310 909,642 22,668 752,555 Public works - - - 1,945 Parks, recreation and culture 53,340 19,927 33,413 24,988 Community development 670,000 670,000 - - Total expenditures 1,655,650 1,599,569 56,081 779,488 Excess (deficiency) of revenues over (under) expenditures (470,550) ((376,058 94;492 348,028 Other financing sources (uses) Operating transfers out (315,000) (141,861 173,139 (30,422_ Total other financing sources (uses)3( 15,000) _((141,861) 173,139 (30,422 Excess (deficiency) of revenues over (under) expenditures and other financing uses (785,550) (517,919) 267,631 317,606 Fund balances at beginning of year 1,951,868 1,951,868 - 1,634,262 Fund balances at end of year1 166 318 1.433,949 267,631 1,951.868 36 CITY OF DIAMOND BAR EXHIBIT B-5 Proposition C Transit Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Fund balances (deficit) at end of year L 3961.97 11 3 37 Variance - Favorable 1999 (Unfavorable) Actual 26,345 Budget Actual Revenues: 28,055 646,827 Intergovernmental $ 554,800 581,145 Investment income 100,000 101,710 Total revenues _ 654,800 682,855 Excess of revenues over expenditures 654,800 682,855 Other financing sources (uses) Operating transfers out (3,091,000 9,121,763 Total other financing sources (uses) 000)(1,331,763 -(LQ2-1,000 Excess (deficiency) of revenues over (under) expenditures and other financing uses (2,436,200) (648,908) Fund balances at beginning of year 2,040,003 2,040,003 Fund balances (deficit) at end of year L 3961.97 11 3 37 Variance - Favorable 1999 (Unfavorable) Actual 26,345 532,230 1,710 114,597 28,055 646,827 28,055 646,827 L759,237 563 679 11759,237 (563,679) 1,787,292 83,148 1,956,855 1,787.292 2,040.003 15.94111:311W. CITY OF DIAMOND BAR . ISTEA Fund . Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 38 Variance - Favorable 1999 (Unfavorable) Actual (239,173 (239,173 (239,173 239,173 239,173 Budget Actual Revenues: Intergovernmental $991,500 752,327 Total revenues 991,500 752,327 Excess of revenues over expenditures 991,500 752,327 Other financing sources (uses): Operating transfers out (991,500 (752,327 Total other financing sources (uses) (991,500 (752,327 Excess of revenues over expenditures and other financing uses - - Fund balances at beginning of year Fund balances at end of year 38 Variance - Favorable 1999 (Unfavorable) Actual (239,173 (239,173 (239,173 239,173 239,173 CITY OF DIAMOND BAR EXHIBIT B-7 Integrated Waste Management Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Intergovernmental Charges for services Investment income Total revenues Expenditures: Current: Parks, recreation and culture Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year - Budget Actual $ 19,000 41,270 80,000 69,201 12,000 13,343 111,000 123,814 114,400 72551 114,400 72,551 (3,400) 51,263 209,113 209,113 $205,713 260,376 39 Variance - Favorable 1999 (Unfavorable) Actual 22,270 (10,799) 87,424 ---1,343 - 9,347 12,814 96,771 41,849 75,992 41,849 75,992 54,663 20,779 - 188,334 '54,663 209.113 1 WA *I 11 -0.3 CITY OF DIAMOND BAR Air Quality Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 40 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 45,000 64,382 19,382 61,640 Investment income 12,000 8,659 (3,341 8,011 Total revenues 57,000 73,041 16,041 69,651 Expenditures: Current: Public works 18,159 18,947 (788) 29 Community development - - - 19,010 Capital Outlay 121,000 85,161 35,839 - Total expenditures 139,159 104,108 35,051 19,039 Excess (deficiency) of revenues over (under) expenditures (82,159) (31,067) 51,092 50,612 Fund balances at beginning of year 200,695 200,695 - 150,083 Fund balances at end of year 118 536 169,628 51.,092 200.695 40 CITY OF DIAMOND BAR EXHIBIT B-9 Bicycle and Pedestrian Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 41 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 75,800 20,417 (55,383) - Investment income 1,500 1,330 (170 1,563 Total revenues 77,300 21,747 (55,553 1,563 Excess of revenues over expenditures 77,300 21,747 (55,553 .1,563 Other financing sources (uses): Operating transfers out J126,632 Q36,261 90,371 Total other financing sources (uses) J126,632 (36,261 90,371 Excess (deficiency) of revenues over (under) expenditures and other financing uses (49,332) (14,514) 34,818 Fund balances at beginning of year 14,514 14,514 - 12,951 Fund balances (deficit) at end of year 34 818 34,818 14.514 41 No.,4100-11Wo CITY OF DIAMOND BAR Park Fees Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Budget Actual Revenues: Charges for services $ 25,000 7,006 Investment income 5,000 4,228 Total revenues 30,000 11,234 Excess of revenues over expenditures 30,000 11,234 Other financing sources (uses): 10,956 22,611 Operating transfers out (205,000 (182,389 Total other financing sources (uses)(205,000. (182,389 Excess (deficiency) of revenues over (under) expenditures and other financing uses (175,000) (171,155) Fund balances at beginning of year 171,155, 171,155 Fund balances (deficit) at end of year 42 Variance - Favorable 1999 (Unfavorable) Actual (17,994) (772 10,956 (18,766 10,956 (18,766) 10,956 22,611 (45,232 22,611 (45,232 3,845 (34,276) .205,431 3,845 171,155 CITY OF DIAMOND BAR I? EXHIBIT B-11 .C -.LL Park and Facility Development Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Charges for services $1,200,000 1,200,000 - Investment income 70,000 93,094 23,094 72,571 Other revenues - - 2,000 Total revenues 1,270,000 1,293,094 1,293,094 23,094 '74,571 Expenditures: Capital outlay 196,000 196L0 00 . Total expenditures 196,000 196,000 Excess of revenues over expenditures 1,0�74000 1097,094 23,094 74,571 Other financing sources (uses): Operating transfers out —1215,000 (96,994 218,006 Total other financing sources (uses) __(315,000 (96,994 218,006 Excess of revenues over expenditures and other financing uses 759,000 1,000,100 241,100 74,571 Fund balances at beginning of year --1,4-3-1,012 1,431,01 - 1,356,441 Fund balances at end of year 2 190 012 2, 43 ==I=,l 12241.100 1,431,012 43 W.0110-31 I. CITY OF DIAMOND BAR Community Development Block Grant Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Intergovernmental Total revenues Expenditures: Current: Community development Total expenditures Excess of revenues over expenditures Other financing sources (uses): Operating transfers out Total other financing sources (uses) Excess (deficiency) of revenues over (under) expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Budget Actual $ 283,874 365,914 283,874 365,914 176,974 189,818 176,974 189,818 106,900 176,096 5106,900 (176,096 (106,900 (176,096 44 Variance - 117,970 Favorable 1999 (Unfavorable) Actual 82,040 423,284 82,040 423,284 (12,844 117,970 (12,844) 117,970 69,196 305,314 (69,19 (305,401 69196 305 401 CITY OF DIAMOND BAR EXHIBIT B-13 COPS Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Budget Revenues: 2,347 Intergovernmental $192,140 Investment income 25,000 Total revenues - 217,140 Expenditures: 12,651 Current: 13,029 Public safety 31,165 Capital outlay 102,650 Total expenditures - 133,815 Excess of revenues over 93,326 expenditures - 83,325 Other financing sources (uses): 209 063 Operating transfers out 051,300 Total other financing sources (uses) _J151 300 Excess (deficiency) of revenues (45,801) over (under) expenditures and - other financing uses (67,975) Fund balances at beginning of year, 270,226 as restated 208,597 Fund balances at end of year _ 140 622 45 Variance - Favorable 1999 Actual (Unfavorable) Actual 194,487 2,347 196,056 13,277 01,723 17,043 207,764 A9,376 213,099 12,651 18,514 13,029 18,462 84,188 36,808 31,113 102,702 49,837 176,651 93,326 163,262 (139,194) -12,106 209 063 MLI 9-4) 12,106 (209,063) 37,457 105,432 (45,801) 208,597 - 316,027 246,054 105,432 270,226 I .t:1 0.3 18 O -B E CITY OF DIAMOND BAR Asset Seizure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Budget Revenues: Variance - Favorable 1999 Actual (Unfavorable) Actual Investment income $ 22,000 18,501 otal revenues Total 22,000 18,501 Expenditures: Public safety 2,700 2,537 Total expenditures 2,700 2,537 Excess of revenues over expenditures 19,300 15,964 Other financing sources (uses): Operating transfers out (10,500 (3,982 Total other financing sources (uses) 10 500 (3,982 Excess of revenues over expenditures and other financing uses 8,800 11,982 Fund balances at beginning of year 326,213 326,213 Fund balances at end of year J335 013 338,195 46 (3,499 16,705 (3,499 16,705 163 10,000 163 10,000 (3,336 6,705 6,518 6,518 3,182 6,705 - 319,508 3.182 326,213 CITY OF DIAMOND BAR EXHIBIT B-15 Landscape Maintenance Districts Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 Revenues: Special assessments Investment income Total revenues Expenditures: Current: Public works Park, recreation and culture Total expenditures Excess (deficiency) of revenues over (under) expenditures Fund balances of beginning of year Fund balances at end of year Budget Actual $ 548,652 547,041 30,000 60,332 578,652 607,373 589,093 562,674 .589,093 562,674 (10,441) 44,699 1,100,224 1100,224- 100,224-1,144,923 28,721 1,144,923 ,47 Variance - Favorable 1999 (Unfavorable) Actual (1,611) 553,443 30,332 48,232 28,721 601,675 26,419 347,780 - 363 26,419 348,143 55,140 253,532 - 846,692 55,140 1 100,224 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account 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. Capital Improvement Fund - To account for the costs of constructing street improvements, park improvements, and other public improvements not normally included within the other Capital Projects funds. Financing is provided by developer fees and interfLmd transfers from the. Special Revenue Funds and the General Fund. Redevelopment Agency Fund - To account for general fund monies transferred to the Redevelopment Agency for approved capital projects and administrative costs. 48 EXHIBIT C-1 CITY OF DIAMOND BAR Capital Projects Funds Combining Balance Sheet June_30,.2000 Grand Avenue Capital Redevelopment Totals Construction Improvement Agency 2000 1999 Assets Cash and investments Interest receivable Due from other funds Total assets Liabilities and fund balance Liabilities: Accounts payable Retentions payable Deferred revenue Deposits Due to other governments Total liabilities Fund balances: Reserved for: Encumbrances Unreserved: Designated for: Specific projects and programs Undesignated Total fund balances Total liabilities and fund balances $139,131 56,200 s 1,207,807 1,403,138 1,463,434 - 11,921 11,921 4,398 - 561,106 731,781 1,292,887 1100,679 X139 617,306 1951,509 2,707,946 2,568,511 $ - 433,499 46,960 480,459 192,379 - 249,575 - 249,575 16,826 ' - - - 105,928 - - 1,683,041 1,683,041 1,683,041 - - 144,844 144,844 135,166 - 683,074 1,874,845 2,557,919 2,133,340 - 76,664 76,664 296,040 139,131 - - 139,131 139,131 65 768 - (65,768)- 139,131 (65,768 76,664 150,027 435,171 139,131 617,306 1,951,509 2,707.946 2,568,511 X49 CITY OF DIAMOND BAR Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 2000 Grand Avenue Capital Redevelopment Totals Construction Improvement Agency 2000 ice Revenues: Licenses, permits and fees $ 91,225 _ 91,225 1_572 Intergovernmental _ 200,000 200,000 Proceeds from sale - - 6,095,931 (i l of property. Investment income - - 10,629 54,218 64,847 35,183 Other income - 5,000 - 5,000 - Total revenues - 306,854 54,218 361,072 6,132,686 Expenditures: Current: Highways and streets Public - _ _ - _ _ 434,710 2,733 works Community development - 4,468 337,999 Capital outlay. - .5,457,083 503,299 342,467 5,960,382 260,101 806,901 Cost of property sold - - - - 9,462,013 Debt service: Interest - - 305,090 305,090 106,440 Total expenditures - 5,461,551 1,146,388 6,607,939 11,072,898 Excess (deficiency) of j revenues over (under) expenditures (1,092,170(6,246,867 - (5,154,697 --� _t412±0,212) Other financing sources: Operating transfers in - 4,825,014 - 4,825,014 1,148,611 Proceeds of advances - - 1,136,709 1,136,709 3,815,227 Total other financing sources - 4,825,014 1,136,709 5,961,723 4,963,838 Excess (deficiency) of revenues and other financing sources over (under) expenditures - (329,683) 44,539 (285,144) 23,626 Fund balances at beginning of year 139,131 263,915 32,125 435,171 411,545 Fund balances (deficit) at end of year $139:131 (65,168) 76 150,027 435,171 I 50 EXH CITY OF DIAMOND BAR [BIT C-3 Grand Avenue Construction Fund Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Year ended June 30, 2000 Variance - Favorable et Actual Favorable 1999 (Unfavorable) Actual Expenditures: Current: Highways and streets Total expenditures Excess of revenues over expenditures Other financing sources: Operating transfers in Total other financing sources Excess of revenues and other financing sources over expenditures Fund balances at beginning of year Fund balances at end of year139131 139,131 - 139,131 139,131 139,131 139,131 51 CITY OF DIAMOND BAR Capital Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 2000 .52 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $ 200,000 200,000 - - 1 Licenses, permits and fees 565,000 91,225 (473,775) 1,572 Investment income_ 10,629 10,629 3,022 Other income 5,000 5,000 Total revenues 765,000 306,854 _ (458,146) 4,594 I Expenditures: Current: Highways and streets_ _ _ 434,710 Public works 2,733 Community development 28,500 4,468 24,032 406 Capital outlay 10,205,495 5,457,083 4,748,412 723,855 Total expenditures 10,233,995 5,461,551 4,772,444 1,161,704 Excess (deficiency) of revenues over (under) expenditures (9,468,995) 5( ,154,697 4,314,2981( ,157,110 Other financing sources: Operating transfers in 9,044,032 4,825,014 (4,219,018) 1,148,611 Total other financing sources 9,044,032 4,825,014 (4,219,018 1,148,611 Excess (deficiency) of revenues and other financing sources over (under) expenditures (424,963) (329,683) 95,280 (8,499) Fund balances at beginning of year 263,915 263,915 - 272,414 Fund balances (deficit) at end of year $ (161,048) _ 65 768) , 263,915 .52 CITY OF DIAMOND BAR EMBIT C-5 Redevelopment Agency Fund Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Year ended June 30, 2000 Variance - Revenues: Budget Actual Favorable 1999 TR avorable) Actual Proceeds from sale of property $ - - - 6,095,931 Investment income - _ 54,218 54,218 , __L32 161 Total revenues - 54,218 54,218 ` 611285092 Expenditures: Current: Community development Capital outlay 544,420 337,999 206,421 259,695 Cost of property sold 1,485,136 503,299 - 981,837 83,046 Debt service: - - 9,462,013 Interest - __3051090 (305,090 106,440 Total expenditures 2,029,556 1,146,388 883,168 9,911,194 Excess (deficiency) of revenues over (under) expenditures (2,029,556) (1,092,170 937,386 (3,783,102 Other financing sources: Proceeds of advances 1,592,306 1,136,709 (455,597 3,815,227 Total other financing sources 1,592,306 1,136,709 1455,597 3,815,227 Excess (deficiency) of revenues and other financing sources over (under) expenditures (437,250) 44,539 481,789 32,125 Fund balances at beginning of year 32,125 32,125 Fund balances (deficit) at end of year ��125 _'76 664 481,789 32.125 _'S3 I I z 10: 3 ti, N041 MI 0 .3 kyj Internal Service Funds are used to account for the internal services within the City. The City of Diamond Bar has two Internal Service Funds: Self -Insurance Fund — To account for payments made for the City's general liability insurance premium. Equipment Replacement Fund — To account for the replacement of the City's rolling equipment stock or vehicles. 54 CITY OF DIAMOND BAR Internal Service Funds Combing Balance Sheet Year ended June 30, 2000 10004118.3 55 Self- Equipment Totals Insurance Replacement 2000 1999 Assets Current assets: Cash and investments $1,066,274 62,973 1,129,247 1,126,289 Accounts receivable 141,046 . - 141,046 Prepaid expenditures 7,612 - 7,612 Total current assets 1,214,932 62,973 1,277,905 1,126,289 Property, plant and equipment: Machinery and equipment 34,822 34,822 Less accumulated depreciation (2,000 (2,000 Net property, plant and equipment 32,822 32,822 Total assets 1 214 932 95,795 1,310,727 I.J26 289 Liabilities and Fund Equity Current liabilities: Accounts payable 17,795 17,795 25,769 Total liabilities 17,795 17,795 25,769 Fund equity: Retained earnings 1,214932 78,000 1,292,932 1,100,520 Total retained earnings 1,214,932 78,000 1,292,932 1,100,520 Total liabilities and fund equity 1214.932 95.795 1,310,727 1,126,289 55 56 CITY OF DIAMOND BAR. Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings Year ended June 30, 2000 Self- Equipment Totals Insurance Replacement. 2000 1999 Operating revenues: Insurance deposits $ 61,790 - 61,790 - Total operating revenues 61,790 - 61,790 - Operating expenses: Insurance premiums 52,491 - 52,491 284,400 Depreciation - 2,000 2,000 - Total operating expenses 52,491 2,000 54,491 284,400 Operating income (loss) 9,299 (2,000 7,2992( 84,40 Non-operating revenues: Investment income 52,623 - 52,623 49,604 Total non-operating - revenues 52,623 - 52,623 49,604 Income (loss) before operating transfers 61,922 (2,000) 59,922 (234,7 Operating transfers: Operating transfers in 52,490 80,000 132,490 159,465 Total operating transfers 52,490 80,000 132,490 159,465 Net income (loss) 114,412 78,000 192,412 (75,331) Retained earnings, July 1 1,100,520 - 1,100,520 1,175,851 Retained earnings, June 30 $1,214,932 78,000 1.292,932 1 100,520 56 CITY OF DIAMOND BAR EXHIBIT D-3 Internal Service Funds Combining Statement of Cash Flows Year ended June -30, 2000 Self- Equipment Totals Insurance Replacement 2000 1999 . Cash flows from operating activities: Insurance deposits $ 61,790 - 61,790 Insurance payments 226918 - 226 918 (153.276 Net cash provided by (used for) operating activities 165 128165 1128)—(153,276 Cash flows from noncapital financing activities: Cash transferred from other funds .: 52,490 80,000 132,490 159,465 Net cash provided by noncapital financing activities _ 52.490 80,000 132,490 159,465 Cash flows from investing activities: Interest received from investments Purchase of equipment 52,623 - 52,623 49,604 - JLJ027 17 027 - Net cash provided by (used for) investing activities 52,623 17 027 35,596 49,604 Net increase (decrease) in cash and cash equivalents (60,015) 62,973 2,958 55,793 Cash and cash equivalents at beginning of year _ 1,126,289 -1,126,289 1,070,496 Cash and cash equivalents at end of year _1 0666274 62.973 1 129,247 1.126.289 Reconciliation of net operating income to net cash provided by (used for) operating activities: Operating income (loss) Adjustments to reconcile operating $ 9,299 (2,000) 7,299 (284,400) income to net cash provided by (used for) operating activities: Depreciation (Increase) decrease in accounts receivable (141,046) 2,000 - 2,000 (141,046) (Increase) decrease in prepaid insurance (Decrease) increase in accounts payable (7,612) 25769) - (7,612) 107,096 - __(2,5,769) 24,028 Net cash provided by (used for) . operating activities 165 128) -165 =J 28) =a 53 276 Noncash investing, capital and financing activities: During the fiscal year ended June 30, 2000, there were no noncash activities. investing, capital or financing 57 r58 CITY OF DIAMOND BAR EXHIBIT E-1 Comparative Schedule. of General Fixed Assets by Source June 30, 2000 General fixed assets: Land Buildings Improvements other than buildings Furniture and equipment Construction in progress 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 59 2000 1999 $ 5,169,898 1,569,898 1,159,345 1,159,345 2,915,351 2,915,351 1,554,706 1,363,602 535.320 - $-11,134,620 7 008.196 $ 4,118,881 3,646,438 3,767,949 162,949 3,235,202 3,186,221 12,588 12.588 $-1.1,134,620 7,008.196 EXHIBIT E-2 CITY OF DIAMOND BAR Schedule of General Fixed Assets by Function and Activity June 30, 2000 60 Improvements Furniture Other than and Construction Function and Activity Land Buildings Buildings Equipment in Progress Total General government: City council $ - - - 12,900 - 12,900 Administration - - - 934,871 - 934,871 City clerk - - - - 65,618 - 65,618 Community development - - - 32650 - 32,650 Finance - - - 66,678 - 66,678 Other 3,609,898 - - 11,000 - 3,620,898 Total general government 3,609,898 - 1,123,717 - 4,733,615 Public safety: Sheriff - - - 143,703 - 143,703 Emergency preparedness - 35,939 - 35,939 Total public safety - - - 179,642 . - 179,642 Public works - 29,211 - 29,211 Culture and recreation 1,560,000 1,159,345 2,915,351 189,709 335,320 6,159,725 Library - - 32,427 - 32,427 Total general fixed assets 5 16 11 145 2 15 351 1 554.706 335.320 11,134.620 60 CITY OF DIAMOND BAR EXHIBIT E-3 Schedule of Changes in General Fixed Assets by Function and Activity Year ended June 30, 2000 Function and Activity 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 Library Total general fixed assets Balance at Balance at June 30, 1999 Additions Deletions June 30, 2000 $ 8,969 3,931 - 12,900 823,138 111,733 - 934,871 22,696 42,922 - 65,618 30,959 1,691 - 32,650 66678 - - 66,678 20,898 3,600,000 - 3,620,898 973.338 3,760,277 - 4,733,615 128,519 15,184 - 143,703 33,233 2,706 - 35,939 161,752 17,890 - 179,642 27,981 1,230 - 29,211 5,812,698 347,027 - 6,159,725 32,427 - 32,427 008196 4,126.424 11.134.620 61 City of Diamond Bar General Government Expenditures by Function (1) Since Incorporation in April, 1989 (unaudited) Fiscal Year General Government* Public Safety Public Works Culture & Recreation Capital Outlay* Debt Service Total 1988-89 $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 8,364,192 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 l 1995-96 2,319,801 4,110,104 2,372,404 1,127,136 1,579,421 104,930 11,613,796 1996-97 2,615,272 4,095,518 2,279,731 1,270,617 1,541,307 10,320 11,812,765 1997-98 3,145,257 4,094,401 2,402,426 1,666,198 5,189,027 28,064 16,525,373 1998-99 2,895,986 4,738,375 2,839,789 1,489,708 10,666,740 106,440 22,737,038 1999-00 4,071,192 4,654,187 2,679,598 1,805,489 6,397,292 305,090 19,912,848. • III III III III "�i� . 1lil III dytC 111 111 • III 111 � iar � -L;,�1 - � -�,K. 1 111 III � • � � ...z v r ( fs (1) Includes General, Special Revenue and Capital Project Funds. *Note: General Government includes Community Development Expenditures i Capital Outlay includes Cost of Property sold. Source: City Finance Department 62 City of Diamond Bar General Government Revenues by Source Since Incorporation in ApHI, 1989 (unaudited) Fiscal Year Taxes* Special Assessments Licenses & Permits Inter- Governmental Fines & Forfeitures Use of Money & Property Other Revenue Total 1988-89 $21,093 $0 $112,578 $1,371,326 $1,946 $1,650 $46,625 $1,555,218 1989-90 3,497,401 409,454 841,525 5,271,606 193,852 440,520 8,313 10,662,671 1990-91 4,409,302 422,038 597,771 5,993,281 281,891 506,081 55,307 12,265,671 1991-92 4,593,790 466,369 864,260 5,067,309 97,730 578,340 27,078 11,694,876 1992-93 4,494,173 469,671 724,694 5,910,715 123,242 451,077 101,305 12,274,877 1993-94 5,060,850 499,030 965,835 5,539,046 187,430 466,209 38,372 12,756,772 1994-95 5,174,343 476,148 881,588 5,640,400 253,824 732,693' - 56,399 13,215,395 1995-96 5,538,406 538,896 1,066,475 5.735,096 261,138 863,855 50,787 14,054,653 1996-97 5,708,*029 530,375 1,417,073 6,354,150 176,267 1,005,683 42,856 15,234,433 1997-98 5,943,775 561,772 1,247,155 9,178,049 219,075 1,166,554 1,329,957 19,646,337 1998-99 6,359,624 553,443 2,147,195 6,535,812 573,449 1,191,305 6,159,240 23,520,068 1999-00 8,006,841 547,041 1,666,726 7,713,344 556,527 1,395,7.85 59,443 19,945,707 • 111 111 111 111 tw 'r;'? �"�� `�. = .•.� =�.,F. i. -� r�k -�,.�.�� - �1 ��?� ■ M: 11 (1) Includes General, Special Revenue and Capital Project Funds. Note: 1991-1992 "Other Revenue includes &179,679 developer fees collected in the Special Revenue Fund. *Note: Taxes category includes Charges for Services. "Note: Other Revenue includes proceeds from sale of property. Source: City Finance Department 63 City of Diamond Bar Secured Property Tax Levies and Collections Since Incorporation in April, 1989 (unaudited) Fiscal Total Total Current Percentage of Deliquent Tax Year Current Levy Collections Levy Collected Receivables 1988.;89 Not Available Not Available Not Available Not Available 1989-90 $908,401 $835,873 92.02% $72,528 1990-91 1,089,679 1,013,572 93.02% 76,107 1991-92 1,232,346 1,144,019 92.83% 88,327 1992-93 1,117,482 1,025,382 91.76% 92,100 1993-94 1,180,435 818,467 69.34% 361,968 1994-95 1,804,068 1,625,911 90.12% 178,157- 1995-96 1,796,593 1,711,983 95.29% 84,610 1996-97 1,809,197 1,625,252 89.83% 183,945 1997-98 1,781,264 1,680,816 94.36% 100,448 1998-99 1,810,266 1,758,764 97.16% 51,502 1999-00 1,904,915 1,813,904 95.22% 91,011 111 111 M M NA 0M M!, !, ® 11 1110 tY'M W -M-1-10 M Mkc,�,M WOMM 111111115" _M:1- MMMMR W ti *Note: The City of Diamond Bar settled a property tax lawsuit with Los Angeles County that resulted in additional property tax payments totalling $1,882,789. The funds were received in three (3) payments dated February 1994, August 1994 and August 1995. These amounts are not included in the above figures as they were associated with the initial property tax transfer at the date of incorporation. Source: Los Angeles County Auditor/Controller. a 0# too 111 • lot oil 111 of Oil I ■ oil it too I -M. M *1988-89 and 1989-90 estimated by using the combined unincorporated areas of Pomona Unified School and Walnut Valley Unified School District -Source: California Muncipal Statistics Los Angeles County Auditor/Controller reported no Public Utility Valuations. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone' I City of Diamond Bar Table 4 Assessed and Estimated Actual Values of Taxable Property Since Incorporation in April, 1989 (unaudited) Fiscal Secured Unsecured Public Percentage Year Gross Value Gross Value Utility Exemptions Total 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% 1995-96 3,659,337,876 60,689,091 825,138 35,979,540 3,684,872,565 1.12% 1996-97 3,660,223,979 64,187,086 828,963 27,479,616 3,697,760,412 0.35% 1997-98 3,645,994 575 67,863,390 884,347 37,731,129 3,677,011,183 -0.56% 1998-99 3,730,370 102 74,441,058 876,688 38,373,706 3,767,314,142 2.46% 1999-00 3,873,275,798 63,844,054 125,921- 36,494,583 3,900,751,190 3.54% 0# too 111 • lot oil 111 of Oil I ■ oil it too I -M. M *1988-89 and 1989-90 estimated by using the combined unincorporated areas of Pomona Unified School and Walnut Valley Unified School District -Source: California Muncipal Statistics Los Angeles County Auditor/Controller reported no Public Utility Valuations. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone' I City of Diamond Bar 2.0000000 1.7500000 1.5000000 1.2500000 1.0000000 0.7500000 0.5000000 0.2500000 0.00000ao Typical Property Tax Rates (Percent of Assessed Value) 1988.89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 .1995.98 1998-97 1997-98 1998-99 1999-00 Fiscal Year `Note: Property tax rates based on a typical tax rate area. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone 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 LA County L.A County Metropolitan j Year I Levy County 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 _i 1994-95 1.0000000 0.0019930 0.0649030 0.0000000 0.0060410 0.0000000 0.0089000 1.0818370 1995-96 1.0000000 0.0018140 0.0089866 0.0000000 0.0009630 0.0000000 0.0089000 1.0206636 1996-97 1.0000000 0.0016040 0.0850380 0.0000000 0.0019910 0.0000000 0.0089000 1.0975330 1997-98 1.0000000 0.0015840 0.1025300 0.0000000 0.0021970 0.0000000 0.0089000 1.1152110 1998-99 1.0000000 0.0014510 0.0694610 0.0000000 0.0019530 0.0000000 0.0089000 1.0817650 1999-00 1.0000000 0.0014220 0.0784890 0.0000000 0.0017650 0.0000000 0.0089000 1.0905760 2.0000000 1.7500000 1.5000000 1.2500000 1.0000000 0.7500000 0.5000000 0.2500000 0.00000ao Typical Property Tax Rates (Percent of Assessed Value) 1988.89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 .1995.98 1998-97 1997-98 1998-99 1999-00 Fiscal Year `Note: Property tax rates based on a typical tax rate area. Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone City of Diamond Bar Principal Taxpayers June.30, 2000 (unaudited) 67 1998-1999 Percentage of Total Taxpayer Primary Use Assessed Valuation Net Assessed Valuation IRPM Muller Associates LLC ...-. Commercial $21,661,076 0.548% M & H Realty Partners II Commercial 18,698,143 0.473% Martin Brattrud Properties Commercial 13,888,672 0.351% Shea Homes Limited Partnership Industrial 11,595,814 0.293% Arden Realty Limited Partnership Commercial 10,439,931 0.264% Nikko Capital Corporation Commercial 10,188,664 0.258% f Lakeview Village Corporation Commercial 8,632,125 0.218% • Mark R Tournat Company Trust Commercial 8,334,630 0.211% Diamond Bar Hotel Fund Limited Commercial 8,247,554 0.209% t Inter Community Health Commercial 7,390,000 0.187% 119,076,609. l 3.013'% . f 67 City of Diamond Bar Computation of Legal Debt Margin June 30, 2000 (unaudited) Assessed Valuations: Assessed Value $ 3,900,751,190 Add Back: Exempt Property 36,494,583 Total Assessed Value $ 3,937,245,773 Legal Debt Margin: Debt limitations -15% of Total Assessed Value* $ 590,586,866 Debt Applicable to Limit Total Bonded Debt 0 Less: Special Assessment Bonds 0 Revenue Bonds 0' Available for Repayment of General Obligation Bonds 0 Total Debt Applicable to Limitation 0 Legal Debt Margin $ 590,586,866 The City of Diamond Bar has no bonded indebtness. *Section 43605 of the California Government Code Source: City Finance Department, Hdl Coren & Cone I 68 City of Diamond Bar. Computation of Direct and Overlapping Debt June 30, 2000 (unaudited) Gross Bonded Govemmen Debt Balance % Applicable IQL4 Debt @ 6/30/00 Los AngelesCounty Facilities 1987 Debt Service $47,865,000 0.720 $344,62' LA Co Flood Control (Storm Drain Bond No 4) 21,540,000 0.728 156,811 Flood Control Ref. Bonds 1993 Debt Service 9,620,000 *Metropolitan 0.728 70,034 Water District Area 1112 Debt Service 549,615,000 *Three 0.556 3,055,859 Valley MWD Orig Area 549,615,000 0.556 3,055,859 Pomona Unified SD 1998 Series C Debt Service 15,000,000 25.556 -• 3,833,400 Pomona Unified SD 2000 Refund Series A Debt Servic 21,485,000 25.556 5,490,707.: Pomona Unified SD 1997 Refund Series A Debt Servic 49,700,600 25.556 12,701,332 Pomona Unified SD 1991 Series G Debt Service 9,620,000 25-556 2,458,487 Walnut Valley Unified SD Refund Series 1997 A DS 44,752,719 72.691. 32,531,199. Total Gross Direct and Overlapping Bonded Debt $ 63,698,316 1999/2000 Assessed Valuation: $ 3,471,424,756 Debt to Assessed Valuation Ratios: Direct Debt 0.00% Overlapping Debt 1.83 Total Debt 1.83 Report reflects general obligation debt which is being repaid through voter -approved indebtness. It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations and certificates of participation. This fund is a portion of a larger agency, and is responsible for debt in areas outside t . he city. Source; City Finance Department, HdI Coren & Cone 69 Type of Coverage Liability: General Liability, Automobile Liability, Bodily Injury, Property Damage, Personal Injury. Special Liability: Errors and ommissions, Employment Practices injury, Contractual Liability injury, Broadcast/Publication injury Employee Benefits, Administration injury, Discrimination injury. City of Diamond Bar Schedule of Insurance June 30, 2000 (unaudited) Limits/Deductibles $50,000,000 limit each occurrence, $50,000,000 annual aggregate. Retained loss of $20,000 per occurrence. $50,000,000 limit each occurrence, $50,000,000 annual aggregate. Retained loss of $20,000 per occurrence. Insurer Policy period Self Insured Program/ 07/1/00 -Until California Joint Powers suspended or Insurance Authority. terminated. Self Insured Program/ 07/1/00 -Until California Joint Powers suspended or Insurance Authority. terminated. i Pollution & Remediation Legal Liability: Scheduled property, streets, storm CJPIA Limit $50,000,000 for 3 years. Self Insured Program/ 07/01/00-07/01/03 drains, approved underground tanks & $10,000,000 per member. Self insur- California Joint Powers non -owned disposal sites. ed retention $50,000 per occurrence. Insurance Authority. Property: All -Risk, including buildings, contents, garaged vehicles, contractor's equip- ment, fine arts, rental income and other miscellaneous extentions of coverage. Automobile: Automobile Physical Damage Crime: Public Employee Blanket Fidelity Bond - Faithful Performance Bond Coverage'O' Depositor's Forgery Coverage 'B' Crime- Money & Securities Coverage -'C' Computer Fraud Coverage'F' . Worker's Compensation: Work related injury/illness claims for temporary and permanent disability. Special Events: Tenants/Users for Property damagelbodily injury $100,000,000 per occurence, deductible of $5,000 per occurrence. $100,000,000 per occurence, deductible of $1,000 per occurrence $1,000,000 limit, deductible of $5,000 per occurrence $1,000,000 limit, deductible of $5,000 per occurrence $1,000,000 limit, deductible of $5,000 per occurrence $1,000,000 limit, deductible of $5,000 per occurrence California Statutory limit; $1,000,000 employers liability incl defending costs. Robert F. Driver Assoc. 12/31./99-12/31100 Robert F. Driver Assoc. 12/31/00-12/31101 Robert F. Driver Assoc. 01/01/00-01/01/01 Robert F. Driver Assoc. 01/01/00-01/01/01 Robert F. Driver Assoc. 01/01/00-01/01/01 Robert F. Driver Assoc. 01/01/00-01/01/01 State Compensation 10/01/00-10/01/01 Insurance Fund $1,000,000 per occurrence and Robert F. Driver Assoc. 04/01/00-0411/01 aggregate per event. $5,000 medical expense limit. Source: City Finance Department 70 City of Diamond ar Table 14 Demographic and Miscellaneous Statistical Information June 30, 2000 (unaudited) Dateof Incorporation.................................................................................... April 18, 1989 Form of Government ............ :...................................:.............................. Council -Manager Area..................................................................:................................ 14.9 Square miles Milesof Streets.................................................................:........................................ 137 Employees(full-time)................................................................................................... 46 Employees(part-time).................................................................................:................ 23 Fire Protection -11.79% (Los Angeles County Consolidated Fire protection District) -0.14% Numberof Stations..................................................................................................... 3 Numberof Officers............................................................................. ................. 36 Sewers: Sanitary Sewers ............... . 146.88 StormSewers..................................................................................................... 31.95 Recreation & Culture: CommunityCenters..............................................................................:.:......:...:....... 1 Parks..............................................................................................................:...... 10 ParkAcreage (developed)....................................................................................... 60.9 ParkAcreage (undeveloped)................................................................................... 81.5 Education: ElemantarySchools (K-6)........................................................................................... 7 MiddleSchools (6-8)................................................................................................. 3 JrHigh Schools (7-8).......................................................................................:........ 3 HighSchools (9-12).................................................................................................. 2 Population:' Date 1989 1990 1991 1992 1993 1994 1995 1996 .1997 1998 1999 2000 Population Percentage Increase 60,000 -- 53,672 -11.79% 53,596 -0.14% 53,576 -0.04% 54,315 1.36% 54,507 0.35% 54,284. .. -0.41% 56,003 3.07% 56,6591.16% 57,271 .. 1.07% 58,300 1.77%' 59,100 1.35% Note: 1989 population numbers are an estimate. *Source: State of California, Department of Finance City of Diamond Bar Residential and Commercial Construction 437 Since Incorporation in April, 1989 212 $ 4,036,302 1990-91 (unaudited) 8,868,435 83 11,361,825 1991-92 New Construction 10,799,186 Fiscal Residential (1) Commercial Year Units Value Units Value 1988-89 5,781,300 95 4,839,400 1994-95 1989-90 39 $ 12,246,600 '6 $ 269,372 1990-91 24 6,989,816 17 1,528,280 1991-92 26 13,596,000 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 1995-96 26 16,715,000 .0 0 1996-97 15 9,516,000 1 4,300,000 1997-98 66 32,539,000 0 0 1998-99 88 36,303,000 5 21,516,000 199900 28 18,274,000 2 1,706,000 Alterations and Additions Fiscal Residential (1) 'Commercial Year Units Value Units Value �-- - V 1989-90 437 $ 4,085,588 212 $ 4,036,302 1990-91 744 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 1995-96 651 7,285,100 52 2,460,200 1996-97 595 12,150,400 58 3,826,800 .1997-98 639 8,618,400 52 2,453,000 1998-99 751 19,163,240 53 10,099,900 1999-00 632 8,255,650 99 8,324,100 Bank Deposits 6/30/89 321,853,000 6/30/90 343,605,000 6/30/91 377,224,000 6/30192 381,710,000 6/30/93 371,506,000 6/30/94 379,581,000 6/30/95 423,640,000 6/30/96 480,610,000 6/30/97 472,071,000 6/30/98 532,147,000 6/30/99 533,242,000 (1) Includes multiple dwellings Source: City's Contract Building & Safety Provider, Findley Reports 72 1.4000 1.2000 1.0000 0.8000 0.6000 0.4000 0.2000 0.0000 General Fund Ratio Baca na WOU-50 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 Fiscal Year 73 City of Diamond Bar Ratio®Unreserved General Fund Balance to Annual General Fund Expenditures Since Incorporation in April, 1999 (unaudited) Unreserved Annual . Fiscal General Fund General Fund Year Balance Expenditures Ratio 1988-89 $ 50,915 $ 798,947 0.0637 1989-90 1,375,030 9,600,559 0.1432 1990-91 2,200,322 8,031,932 0.2739 1991-92 3,019,852 8,208,271 0.3679 1992-93 3,305,067 8,232,941 0.4014 1993-94 5,677,619 9,329,431 0.6086 1994-95 7,711,454 8,241,463 0.9357- 1995-96 9,600,649 8,446,432 1.1367 1996-97 10,755,111 8,777,410 1.2253 1997-98 12,392,358 9,401,308 1.3182 1998-99 11,446,683 10,554,029 1.0846 1999-00 13,169,183 10,900,615 1.2081 . 1.4000 1.2000 1.0000 0.8000 0.6000 0.4000 0.2000 0.0000 General Fund Ratio Baca na WOU-50 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 Fiscal Year 73 City of Diamond Bar Schedule of Credits Year Ended June 30, 2000 Name James DeStefano, Interim City Manager David A. Doyle, Deputy City Manager Linda G. Magnuson,Finance Director Gina M. Tharani,Accountant 11 Conrad and Associates, C.P.A., L.L.P. Teresa Montgomery Communications and Marketing Coordinator Source: City of Diamond Bar 74 Area of Contribution General Overview Letter of Transmittal General Overview Letter of Transmittal General Overview Letter of Transmittal Statistical Tables Statistical Tables Financial Statements Notes to Financial Statements Cover and Divider Page Design (This page intentionally left blank)