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CITY OF DIAMOND BAR
CALIFORNIA
Comprehensive Annual Financial Report
Year ended June 30, 2003
Prepared by:
FINANCE DEPARTMENT
Linda G. Magnuson
Director of Finance
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Imp,
Comprehensive Annual Financial Report
Year ended June 30, 2003
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Page
Letter of Transmittal 1
CSMFO Certificate of Award Outstanding Financial Reporting vii
GFOA Certificate of Achievement for Excellence in Financial Reporting viii
Organization Chart ix
List of Principal Officials x
FINANCIAL SECTION:
Independent Auditors' Report 1
Management's Discussion and Analysis (Required Supplementary Information) 3
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 13
Statement of Activities 14
Fund Financial Statements:
Governmental Funds: 16
Balance Sheet
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets 17
Statement of Revenues, Expenditures and Changes in Fund Balances 18
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities , 19
Proprietary Funds:
Statement of Net Assets 20
Statement of Revenues, Expenses and Changes in Fund Net Assets 21
Statement of Cash Flows 22
Notes to the Basic Financial Statements 24
Required Supplementary Information: 58
Notes to Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual: 59
General Fund
AlwKelsNIx_0,1_•1 a 113 0.1.11 I'll
Comprehensive Annual Financial Report
(Continued)
TABLE OF CONTENTS, (CONTINUED)
Page
Supplementary Schedules:
Non -Major Governmental Funds:
Combining Balance Sheet 61
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 62
Non -Major Special Revenue Funds:
Combining Balance Sheet
65
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
67
Schedules of Revenues, Expenditures and Changes in Fund Balances
— Budget and Actual:
State Gas Tax
69
Proposition A Transit
70
Proposition C Transit
71
ISTEA
72
Traffic Congestion Relief
73
Integrated Waste Management
74
Air Quality Improvement
75
California Law Enforcement Equipment Program (CLEEP)
76
Park and Facility Development
77
Community Development Block Grant
78
Citizens Option for Public Safety (COPS)
79
Asset Seizure
80
Landscape Maintenance District
81
Non -Major Debt Service Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balances
- Budget and Actual:
Public Financing Authority Debt Service
83
Major and Non -Major Capital Projects Funds:
Schedules of Revenues, Expenditures and Changes in Fund Balances
- Budget and Actual:
Public Financing Authority Capital Project
85
Capital Improvement
86
Grand Avenue Construction Capital Project
87
CITY OF DIAMOND BAR
Comprehensive Annual Financial Report
(Continued)
TABLE OF CONTENTS, (CONTINUED)
Page
Internal Service Funds:
Combining Statement of Net Assets
89
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
90
Combining Statement of Cash Flows
91
STATISTICAL SECTION:
Table
Page
Government -wide Expenses by Function
1
93
Government -wide Revenues
2
94
General Government - Expenditures by Function
3
95
General Government - Revenues by Source
4
96
Property Tax Levies and Collections
5
97
Assessed and Estimated Actual Value of Taxable Property
6
98
Property Tax Rates — Direct and Overlapping Debt
7
99
Computation of Legal Debt Margin
8
100
Computation of Direct and Overlapping Debt
9
101
Residential and Commerical Construction and Bank Deposits
10
102
Principal Taxpayers
11
103
Schedule of Insurance
12
104
Miscellaneous Statistics
13
105
Schedule of Credits
14
106
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INTRODUCTORY SECTION
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21825 E. Copley Drive • Diamond Bar, CA 91765-4178
(909) 860-2489 • Fax (909) 861-3117
www.CityofDiamondBar.com
November 14, 2003
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, 2003. This is
the first year that the City's annual financial report has been reformatted
to comply with the new financial reporting model developed by the
Governmental Accounting Standards Board (GASB) Statement 34. The
new financial reporting model changes the format of the City's financial
statements. It is intended to improve financial reporting by including
significant additional information not previously available in local
government financial statements.
This report consists of management's representations concerning the
Carol Herrera
finances of the City. Consequently, responsibility for both the accuracy of
Mayor
the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the City's management. To provide a
Robert S. Huff
reasonable basis for making these representations, management of the
Mayor Pro Tem
City has established a comprehensive internal. control framework that is
designed both to protect the City's assets from loss, theft, or misuse and
Wen P. Chang
Council Member
to compile sufficient reliable information for the preparation of the City's
financial statements in conformance with GAAP. Because the cost of
3eborah H. O'Connor
internal controls should not outweigh their benefits, the City's
Council Member
comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial
Robert P. Zirbes
Council Member
statements will be free from material misstatement. As management, we
assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material aspects.
The City's financial statements have been audited by Conrad and
Associates, L.L.P., a firm of certified public accountants. The goal of the
independent audit was to provided reasonable assurance that the financial
statements of the City for fiscal year ended June 30, 2003, are
Recycled paper
free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements assessing the
accounting principles used and significant estimates made by management; and evaluating
the overall financial statement presentation. The independent auditor concluded based upon
the audit that there was a reasonable basis for rendering an unqualified opinion that the
City's financial statements for the fiscal year ended June 30, 2003, were fairly presented in
conformity with GAAP. The independent auditor's report is presented as the first
component of the financial section of this report.
The independent audit of the financial statements of the City of Diamond Bar was part of a
broader, federally mandated "Single Audit" designed to meet the special needs of federal
grantor agencies. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the financial statement,
but also on the audited City's internal controls and legal requirements involving the
administration of federal awards. These reports are available in the City's separately issued
Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should
be read in conjunction with it. The City's MD&A can be found immediately following the
report of the independent auditors.
The City; incorporated in 1989, is located at the junction of the 57 and 60 freeways. As
a result, the City of Diamond Bar is at the hub of the Los Angeles basin transportation
network. A twenty-five mile radius encompasses Pasadena, downtown Los Angeles,
Long Beach, Irvine and Riverside. .Diamond Bar is a relatively young residential
community of about 59,000, situated among the meandering hills and valleys of Brea
Canyon. Many desired services can be found in Diamond Bar's shopping and business
centers. Recreational opportunities within the City include more than 70 acres of
developed park facilities, an 18 -hole public golf course and 370 acres of undeveloped
publicly owned open space.
The City has operated under the council-manager form of government since
incorporation. Policy making and legislative authority are vested in a five member City
Council. The City Council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and task forces, and hiring both the City
Manager and City Attorney. The City Manager is responsible for overseeing the day -to
day operations of the City, and for appointing the heads of the various departments. The
council is elected on a non-partisan basis. Council members serve four-year staggered
terms, with elections held every other year. Each December, the City Council selects a
mayor and mayor pro tem from its membership.
11
The City of Diamond Bar is a contract city and as such contracts for many of its services.
This includes building and safety services, road maintenance and landscape maintenance.
The Los Angeles County Fire District provides fire protection, which is independent of
the City. Funds are collected through property tax bills and are disbursed directly to the
Los Angeles County Fire District by the Los Angeles County Tax Collector's Office.
Water services for the City are provided by the Walnut Valley Water District. Refuse
collection is provided by private waste collection companies. Additionally, schools are
provided by both the Walnut Valley Unified School District and the Pomona Unified
School District. Accordingly, none of these activities are included in this report.
ECONOMIC CONDITION AND OUTLOOK
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 sates tax
revenues, and property tax revenues. Now, with the threat of possible shifts in State
revenue, the future is not as stable as it once was. The City has, however, built General
Fund reserves to fill in any gaps created by the economy or the State. A careful analysis
of the FY 03-04 budget will be done mid -year to adjust anticipated revenues as well as
appropriations.
Of major concern, are efforts by the State to reduce municipal revenue resources. These
include motor vehicle license fees and gas tax revenues. This along with the taking of
revenue that was to "backfill" shortages in property tax revenues 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 continues to market opportunities for business expansion and business
attraction. During FY03-04, the City will explore opportunities to expand its sales tax
and property tax base with new development opportunities in its commercial areas.
These include the Country Hills Town Center; Calvary Chapel/Citrus Valley site; Walnut
Valley Trailer Park site; Banning office project and the K -Mart Property.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Diamond Bar for its comprehensive annual financial report for the fiscal year ended
June 30, 2002. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
financial reports.
um
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report, with
contents that conform to program standards. The CAFR must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of
Diamond Bar has received the Certificate of Achievement for the last eight consecutive
years (fiscal years ended 1995 through 2002 ). We believe our current report continues
to meet the Certificate of Achievement Program's requirements and we are submitting it
to GFOA to determine its eligibility for another certificate.
The City of Diamond Bar has also been awarded the Certificate of Award for
Outstanding Financial Reporting by the California Society of Municipal Finance Officers
for its comprehensive annual financial report for the last seven consecutive years.
REPORTING ENTITY AND ITS SERVICES
This Comprehensive Annual Financial Report includes all funds of the City. The City
directly provides a limited range of services and contracts for several other services. The
City's significant reliance on contracted services has the benefit of reducing expenses to
the citizens of the City of Diamond Bar while simultaneously providing the City with a
high degree of flexibility in responding to changing economic conditions. Contracted
services include police protection, building and safety, street maintenance, park
maintenance, capital improvement projects, animal control, attorney services and
engineering. Staff provided services include: community development (which includes
planning, economic development, building and safety management, and neighborhood
improvement), public works (which includes engineering, capital projects administration,
street maintenance contract management, traffic and transportation matters, engineering
contract management, solid waste contract management and subsidized transit ticket
sales), community services (which includes senior services, park maintenance, recreation
services and landscape maintenance), community relations, grant administration, financial
management, and administrative management. All of these activities are included in this
report.
Cash Management
The City invests temporarily idle funds in accordance with the Government Code and the
investment policy approved by the City Council. During FY02-03, most of the City
funds were invested in the Local Agency Investment Fund (LAIF), which is administered
by the State Treasurer's Office. In addition to LAIF, the City maintains Money Market
Mutual Fund accounts that are in accordance with the City's investment policy. The
City manages all of its cash and investments on a pooled basis. Interest earnings are
allocated to the various funds based on their share of cash and investment balances.
iv
Risk Management
The City of Diamond Bar is a member of the California Joint Powers Insurance
Authority (CJPIA) for the purpose of pooling its general liability losses and claims with
the other member agencies. The City retains the first $20,000 of each claim. Claims
above $20,000 are shared by all the member agencies up to a maximum of $50,000,000
per occurrence.
The City has also joined the CJPIA's Workers' Compensation Insurance Program. The
administration of the workers' compensation program is similar to that of the authority's
liability program. The City is charged for the first $50,000 of each claim. Costs from
$50,001 to $100,000 per claim are pooled based on the member's losses under its
retention lever. Costs between $100,001 & $500,000 are pooled based on payroll.
Costs in excess of $500,000 are paid by excess insurance purchased by the CJPIA. The
excess insurance provides coverage to statutory limits.
Additionally, the City has all risk property insurance through the Authority. The City's
property is currently insured according to a schedule of covered property submitted to
the Authority by the City. Total all-risk property insurance overage is $100,000,000 per
occurrence. There is a $5,000 per loss deductible. Premiums for the coverage are paid
annually.
The City has also established a self-insurance internal service fund to cover the City's
share of any potential losses not covered by the CJPIA. The City Council established a
policy of annually transferring $100,000 to the fund to create a self-insurance reserve.
Policy states that when the reserve reaches $1,000,000, the reserves are deemed to be
sufficient. No transfer was necessary this fiscal year, since the reserves reached that
milestone in fiscal year 1998-99. The self-insurance reserve at June 30, 2003 was
$1,409,729.
Defined Benefit Pension Plan
The City has contracted with the California Public Employees Retirement System
(PERS) to provide retirement, disability, death and survivor benefits for all eligible full
and part-time City employees. The pension benefit obligation varies from year to year
and is computed as part of an actuarial valuation. For the three years ended June 30,
2001, 2002, and 2003 the total contribution to PERS was 11.05%, 11.05% and 11.66%
respectively, of the annual covered payroll. The City's total contribution to the system
was $251,589 for FY02-03. The total contribution paid by the City included employer
contributions as well as member contributions for which the City is contractually
obligated to pay on behalf of its employees.
Acknowledgements
The preparation of this Comprehensive Annual Financial Report on a timely basis was
made possible by the dedicated service of the City's Finance Department staff, and
through the cooperation of the entire City staff. Each star member has my sincere
appreciation for the contributions made in the preparation of this Report.
I would also like to thank our independent auditor, Conrad & Associates L.L.P., for its
expertise and advice in the preparation of the City's Comprehensive Annual Financial
Report.
In closing, without the leadership and support of the City Council of the City of
Diamond Bar, the preparation of this Report would not have been possible.
Sincerely,
Linda C. Lowry
City Manager
Vi
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Certificate of
Achievement
for Excelleh- c- e
in Financial
Re -porting
� Presented to
City of Diamond Bar,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2002
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United Stites 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.
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ELECTED AND ADMINISTRATIVE OFFICIALS
Mayor
Mayor Pro Tern
Councilmember
Councilmember
Councilmember
City Clerk
City Manager
Deputy City Manager
Deputy City Manager
Director of:
Community Services
Finance
Public Works
Carol Herrera
Robert Huff
Wen P. Chang
Deborah H. O'Connor
Robert Zirbes
Linda Burgess
Linda C. Lowry
James DeStefano
David A. Doyle
Bob Rose
Linda G. Magnuson
David G. Liu
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FINANCIAL SECTION
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CONRADAND CERTIFIED PUBLIC ACCOUNTANTS
200
ASSOCIATES, L.L.P. 2301 RVNOE,CDRIVE,ALIFORNAITE 92612
(949) 474-2020
Fax (949) 263-5520
Honorable Mayor and City Council
City of Diamond Bar
Diamond Bar, California
Independent Auditors' Report
We have audited the accompanying financial statements of the governmental activities, each major fund
and the aggregate remaining fund information of the City of Diamond Bar, California, as of and for the
year ended June 30, 2003, which collectively comprise the City's basic financial statements, as listed in
the table of contents. These financial statements are the responsibility of the management of the City of
Diamond Bar. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund and the aggregate remaining
fund information of the City of Diamond Bar, California, as of June 30, 2003, and the respective
changes in financial position and cash flows, where applicable, of the City of Diamond Bar, California
for the year then ended in conformity with accounting principles generally accepted in the United States
of America.
As discussed further in the notes to the basic financial statements, the accompanying financial
statements reflect certain changes in the presentation of financial data required as a result of the
implementation of GASB Statement No. 34 for the year ended June 30, 2003.
The information identified in the accompanying table of contents as management's discussion and
analysis and required supplementary information is not a required part of the basic financial statements
but are supplementary information required by the Governmental Accounting Standards Board. We have
applied certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However, we did
not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collective
comprise the City of Diamond Bar's basic financial statements. The introductory section, combining and
individual nonmajor find financial statements and statistical tables are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining and
individual nommajor fund financial statements have been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The introductory section and statistical tables
have not been subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on them.
MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION
Honorable Mayor and City Council
City of Diamond Bar, California
Page Two
In accordance with Government Auditing Standards, we have also issued our report dated September 5,
2003 on our consideration of the City's internal control over fmancial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
September 5, 2003
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Management's Discussion and Analysis
As management of the City of Diamond Bar, we offer readers of the City of
Diamond Bar's financial statements this narrative overview and analysis of
the financial activities of the City of Diamond Bar for the fiscal year ended
June 30, 2003. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our
letter of transmittal.
Financial Highlights
During the fiscal year, the City's total net assets increased by
$4,880,025 as a result of operations and the construction of the
Community/Senior Center.
• The total revenues from all sources equaled $20,313,653.
• The total cost of all City programs equaled $15,525,317.
• The assets of the City of Diamond Bar exceeded its liabilities at the
close of the fiscal year by $40,431,580 (net assets). Of this amount,
$26,205,849 (unrestricted net assets) may be used to meet the City's
ongoing obligations to citizens and creditors.
• At the end of the current fiscal year, unreserved fund balance for the
general fund was $22,353,626, nearly double the amount of general
fund expenditures.
• During the fiscal year, the City of Diamond Bar and the Diamond Bar
Redevelopment Agency formed the Diamond Bar Public Financing
Authority. The Financing Authority issued Lease Revenue Bonds in
the amount of $13,755,000. The proceeds of these bonds are
assisting in the building and development of the new Diamond Bar
Center.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the
City of Diamond Bar's basic financial statements. The City of Diamond Bar's
basic financial statements comprise three components: 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
Government -wide financial statements — The government —wide financial
statements are designed to provide readers with a broad overview of the City
of Diamond Bar's finances, in a manner similar to a private -sector business.
The statement of net assets presents information on all of the City of
Diamond -Bar's -assets and liabilities, with the difference.. between the two -
reported as net assets. Over time, increases or decreases in new assets may
serve as a useful indicator of whether the financial position of the City of
Diamond Bar is improving or deteriorating.
The statement of activities presents information showing how the City's net
assets changed during the most recent fiscal year. All changes in net assets
are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows
in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government -wide financial statements distinguish functions of the
City of Diamond Bar that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through
user fees and charges (business -type activities). The governmental activities
of the City of Diamond Bar include general government, public safety,
highways and streets, public works, parks, recreation and culture, and
community development. The City of Diamond Bar currently has no business -
type activities.
The government -wide financial statements include not only the City of
Diamond Bar itself, but also a legally separate financing authority. Although
legally separate, the Diamond Bar Financing Authority is included because
the City is financially accountable for it.
Fund financial statements — A fund is a grouping of related accounts that is
used to maintain control over resources that have been segregated for
specific activities or objectives. The City of Diamond Bar, like other state and
local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the
City can be divided into two categories: governmental funds, and proprietary
funds.
Governmental Funds — Governmental funds are used to account for
essentially the same functions reported as governmental activities in the
government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, available at the end of the
fiscal year. This information helps to determine whether there are more or
fewer financial resources that can be spent in the near future to finance the
City's programs.
Because the focus of governmental funds is narrower than that of the
government -wide financial statements, it is useful to compare the information
presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long-term impacts of the City's
near-term financing decisions. Both the governmental fund balance sheet
and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City of Diamond Bar adopts an annual appropriated budget for its general
fund. A budgetary comparison statement has been provided for the general
fund to demonstrate compliance with this budget.
Proprietary Funds — The type of proprietary funds that City maintains are
internal service funds that are used to allocate costs internally among the
various functions of the City. The City of Diamond Bar uses these funds to
account for its liability insurance costs and vehicle and computer replacement
costs. Because these services predominantly benefit governmental rather
than business -type functions, they have been included within governmental
activities within the government -wide financial statements.
Notes to the Financial Statements — The notes provide additional
information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements.
Other Information — In addition to the basic financial statements and
accompanying notes, this report also presents certain required supplementary
information concerning the City's budgetary control and accounting and
expenditures in excess of appropriations.
Government -wide Financial Analysis
As mentioned earlier, net assets may serve over time as a useful indicator of
the City's financial position. The City of Diamond Bar's assets exceeded
liabilities by $40,431,580 at the close of 2003.
Included in the net assets of the City of Diamond Bar is its investment in
capital assets (e.g., land, buildings, machinery, construction in progress and
equipment), less the related outstanding debt used to acquire those assets.
The City of Diamond Bar uses these capital assets to provide services to its
citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be
used to liquidate these liabilities
CITY OF DIAMOND BAR'S
Statement of Net Assets
------- �rnmCirflfii triA.H.6-i
l-
.2VC
Current —an -a ofher assets $42,305,020
apital assets
15,009,4 6
Total Assets
57,314,426
long-terffif-a-e-ff -&G-Fif—anffl—nd-
-0-tE —er Ca iri
DO- 7 -,3* -, 7 64- -
Total Liabilities
..........
16,882,846
nvested in capital assets, net of debt
—k-e—stricted
Unrestricted
--26—,2-05, 49
Total Net Assets
$40,431,580
b�
An additional portion of the City of Diamond Bar's net assets (14.8 percent)
represents resources that are subject to external restrictions on how they may
be used. The remaining balance of unrestricted net assets ($26,205,849)
may be used to meet the City's ongoing obligations to citizens and creditors.
During the fiscal year, the City commenced the main construction of a new
community/senior center (Diamond Bar Center). Several categories in the
Statement of Net Assets were affected. First and foremost, the City, through
its Public Financing Authority, issued debt to provide funds causing a major
increase in the current and other assets, long term debt, and invested in
capital assets, net of debt categories. Since the center was still under
construction, the City had a great deal of the cash on hand at the end of the
fiscal year and only a portion of the cost capitalized.
There was an increase in net assets of $4,880,025 which is all due to
governmental activities. The following table illustrates this change:
1341
City of Diamond Bar's
Changes in Net Assets
__.._._.___._.._... ... ... .__.._..__._.---..__,__-._�._.
re -venues:-
rogram revenues: _
C arges or services- y
Operating grants and-confr•ibti�ions `-- �
$;872;JOb
�;��C�i-2
ions -
aptal grants andcontrbuti .__._.....I._-_--
__..._...._._-e__s....-_..__-__
--�._-_-.._..___._-_
denera�l-1=2evenu
1,` Cb
�`
roperty taxes
iranst-'end-occupancy taxes
_
2,652 Y23
a,
a es axes
is-_--.-..--_�._
rancFiiseaxe
2_,56`F;292
0 or ve ic^le in-lieu;37�8�
'-•`l'�rope4rfy t�ansi'er tax
�����
-_�_.__._. _
t er axes
nvestment ncome ----—
ther
Tota Frevenues
20,405,342
x p e n se s:
eneral Government
j 3,3
u61ic Safety
�—�,f106`
4,, 4
ig ways antl"Streets �— -� -
�6
u5[ c W—OrFS—
arks,Recreationand Cu ture
2;
interest and-C=iscaf C�rges --Y
+'�S;7�Z
Increase in net assets
15,525,311
4,880,025
Net asses - 07070
35;5 ,
—�_---------'
•---
a�
et assets= 0673003- $40,43-1 58tF'--
The City's total revenues were $20.4 million, while the total cos
programs and services were $15.5 million.
Revenues this fiscal year were higher than those of the prior year. There
were increases in several of the revenue categories. The following are
highlights of some of the increases:
• Property taxes, sales tax and transient occupancy tax were all higher
this year due to a growing economy.
l Motor vehicle in lieu showed a temporary increase during the fiscal
I year. This is due to higher allocations of funds from the State. This
revenue source has been under extreme scrutiny by the public and the
State. Continued receipt of these funds in the future is questionable.
There was a dramatic increase in Parking Fines this year due to a
change in rules relating to street sweeping. This year, the City started
a program that restricts parking during street sweeping hours.
Although there was an extensive trial period and information
dissemination, the number of parking citations increased dramatically.
The one area that the City experienced a decrease in revenues was in its
investment earnings. Interest rates hit an all time low this year. As a result,
the City's investment income took a dramatic hit. The average interest rate
for the prior year was 3.35% as compared to 2.18% for this fiscal year.
Operating expenses remained fairly steady this year, although this fiscal year,
the City through its Public Financing Authority, issued lease revenue bonds.
As a result, the City's expenditures reflect $535,752 in related interest and
banking charges.
Financial Analysis of the City's Funds
As noted earlier the City of Diamond Bar uses fund accounting to ensure and
demonstrate compliance with finance -related legal requirements.
Governmental funds. The focus of the City of Diamond Bar's governmental
funds is to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as
a useful measure of a City's net resources available for spending at the end
of the fiscal year.
As of the end of the current fiscal year, the City of Diamond Bar's
governmental funds reported combined ending fund balances of $36,372,082,
an increase of $10,614,554 in comparison with the prior year. Of this amount,
there is $748,744 reserved to liquidate contracts and purchase orders
outstanding at the end of the year.
The general fund is the chief operating fund of the City of Diamond Bar. At
the end of the current fiscal year, unreserved fund balance of the general fund
was $21,913,219, while the total fund balance reached $22,353,626. As a
measure of the general fund's liquidity, it may be useful to compare both
unreserved fund balance and total fund balance to total fund expenditures.
Unreserved fund balance represents 186.5% of total general fund
expenditures, while total fund balance represents 190% of the same amount.
The fund balance of the City of Diamond Bar's general fund increased by
$2,301,487 during the current year. Since the City's incorporation, the City
has been fiscally conservative. This has resulted in adding over $2 million
each year for the past five consecutive years. Other factors contributing to
this growth are as follows:
• An increase in property tax collections as a result of higher real estate
values.
• An increase in transient occupancy tax as a result of improved travel
business.
• An increase in motor vehicle in lieu revenue as a result of increased
allocations from the State.
• An increase in fines and forfeiture revenue from the change in street
sweeping parking rules. This fiscal year, as a part of the City's
beautification plan, enacted "no parking" rules for street sweeping
days. In addition, the City continued to stress traffic safety by
increasing traffic enforcement activities within the City.
• There were more funds transferred to the General Fund from the Gas
Tax Fund to reimburse for street maintenance expenses.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were
relatively small with the exception of the change in the transfers out amount.
There were slight changes to both anticipated revenue and appropriations.
The anticipated revenues were adjusted to reflect more conservative revenue
estimates. The revenue estimate was reduced by $481,440. This reduction
was mostly composed of $300,000 decrease in investment revenue,
$217,150 decrease in license and permit fees, and $150,000 decrease in
taxes. Some of these decreases -were offset by increases to fines and
forfeitures ($124,500) and intergovernmental revenue ($58,000).
The expenditure budget was also adjusted in an effort to reflect more realistic
estimates. The overall decrease in appropriations was $195,364. There
were decreases to General Government ($120,230), Public Safety
($183,670), Public Works ($119,514). Some of these decreases were offset
by an increase of $228,050 in Parks, Recreation and Culture.
Anticipated Transfers -in increased by $107,650 from an increase to the
transfer -in amount from the previously mentioned anticipated Gas Tax Fund's
reimbursement for road maintenance expenditures.
0
The most dramatic change to the General Fund Budget was the decrease in
the Transfer -out budget. It had been anticipated that the General Fund would
be a major source of funds for the construction of the new community/senior
center. However, the City decided to fund the construction by issuing lease
revenue bonds, thus eliminating the need to draw upon existing fund balance.
Capital Asset and Debt Administration
Capital assets - The City of Diamond Bar's investment in capital assets for
its governmental activities as of June 30, 2003 amounts to $15,009,406 (net
of accumulated depreciation). This investment in capital assets includes land,
buildings and improvements, furniture and fixtures, vehicles and equipment
and construction in progress. The total increase in the City's investment in
capital assets was 89%.
The City has not valued its infrastructure and therefore it has not been
included at this time.
The major capital asset event during the current fiscal year was the
commencement of the construction on the new Diamond Bar Center
(community/senior center). This is by far the largest project constructed by
the City. As a result, the construction in progress reached $7,273,073. The
total anticipated cost for the center is $12.5 million.
The City also replaced its computer operating system this fiscal year and as a
result upgraded its computers through out City Hall.
_-MV—0 1f-Varriond ar
City
Capita sse ts
net of deprec a ion)
an
521465
-5—R3 `ng_s_a__n-a Improvements
urni ure an ixtures
VeTF&r6s__C quipment14,7
9
Construction in
7,273,0731
:$15,OU9,406
E_
Additional information on the City's capital assets can be found in note 4.
Long-term debt — At the end of the current fiscal year, the City of Diamond
Bar's total long-term debt equaled $13,809,092. The following table shows
the breakdown of the debt outstanding.
10
" -dffi 9`term Debt at e nFCF
a utsfi an
V—an 6bF6--R 6!ii-l:&6-s—e'RFv—en
(backed by the Public Financing
Authority)
13,755,000
1Jnam6-Ci ze ond iscoun
Compensatesences (backed by
the City)
191,642
Economic Factors and Next Year's Budgets and Rates
While the City maintains a diverse and upscale housing stock, the City's
economy is equally dependent on commercial and retail revenues. The City's
concentration on maintaining and attracting new business clientele is of
utmost importance.
The City's 2003-04 budget is a fiscally conservative budget. When it was
created, an effort was made to create a cushion in case of funding shortages
as a result of the State's budget shortfalls.
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers,
and creditors with a general overview of the City of Diamond Bar's finances
and to show the City's accountability for the money it receives. If you have
questions about this report or need additional financial information, contact
the City's Finance Department, at the City of Diamond Bar, 21825 Copley
Drive, Diamond Bar, California 91765.
11
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BASIC FINANCIAL STATEMENTS
12
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CITY OF DIAMOND BAR
Statement of Net Assets
June 30, 2003
Governmental
Activities
Assets:
Cash and investments (note 2) $ 32,281,075
Cash and investments with fiscal agent (note 2) 6,983,147
Accounts receivable, net 345,295
Interest receivable 134,000
Due from other governments 1,929,753
Unamortized issuance costs 631,750
Capital assets, not depreciated (note 4) 12,525,538
Capital assets, depreciated (note 4) 2,483,868
Total assets 57,314,426
Liabilities:
Accounts payable
1,808,012
Accrued payroll
189,306
Deposits
996,480
Retentions payable
79,956
Long-term liabilities (note 5):
Due within one year
Due in more than one year
13,809,092
Total liabilities 16,882,846
Net assets:
Invested in capital assets, net of related debt 8,237,553
Restricted for:
Capital projects 5,988,178
Unrestricted 26,205,849
Total net assets $ 40,431,580
See accompanying notes to the basic financial statements.
13
Governmental activities:
General government
Public safety
Highways and streets
Public works
Community development
Parks, recreation and culture
Interest and fiscal charges
CITY OF DIAMOND BAR
Statement of Activities
Year ended June 30, 2003
Total governmental activities $ 15,525,317 2,872,909 4,390,722 1,779,510
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu
Property transfer tax
Other taxes
Investment income
Other
Total general revenues
Change in net assets
Net assets at beginning of year
Net assets at end of year
See accompanying notes to the basic financial statements.
14
(6,482,176)
2,692,723
578,680
2,965,292
828,242
3,370,387
367,638
34,989
439,455
11,362,201
4,880,025
35,551,555
$ 40,431,580
Program Revenues
Operating Capital
Net
Charges for
Grants and Grants and
Governmental
Expenses
Services
Contributions Contributions
Activities
$ 3,315,082
74,805
57,865 -
(3,182,412)
4,988,449
813,617
194,803 -
(3,980,029)
1,006,768
517,930
763,039 -
274,201
3,234,591
908,330
2,992,936 1,779,510
2,446,185
135,525
-
382,079 -
246,554
2,309,150
558,227
- -
(1,750,923)
535,752
-
- -
(535,752)
Total governmental activities $ 15,525,317 2,872,909 4,390,722 1,779,510
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu
Property transfer tax
Other taxes
Investment income
Other
Total general revenues
Change in net assets
Net assets at beginning of year
Net assets at end of year
See accompanying notes to the basic financial statements.
14
(6,482,176)
2,692,723
578,680
2,965,292
828,242
3,370,387
367,638
34,989
439,455
11,362,201
4,880,025
35,551,555
$ 40,431,580
F
5
Z
3 �
.,. � . . .
GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund has been classified as a major fund and is used to account for resources
traditionally associated with government, which are not legally or by sound financial
management to be accounted for in another fund.
CAPITAL PROJECTs FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major capital
facilities. The following Capital Projects Funds have been classified as major funds in the
accompanying financial statements:
Capital Improvements Fund — This fund is used to account for the costs of constructing street
improvements, park improvements, and other public improvements.
Public Financing Authority Fund — This fund is used to account for the financing of the
construction of a community/senior center project.
15
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Governmental Funds
Balance Sheet
Fund balances:
Reserved for encumbrances
Unreserved:
Reported in:
General fund
Special revenue funds
Debt service fund
Capital projects Rinds
Total fund balances
440,407 268,317 40,020 748,744
21,913,219 - 21,913,219
- 7,264,535 7,264,535
614,143 614,143
5,719,861 111,580 5,831,441
22,353,626 268,317 5,719,861 8,030,278 36,372,082
Total liabilities and 4 9,490,069 41,479,899
fund balances $ 24,411,813 1,209,013 6,369,00
See accompanying notes to the basic financial statements.
16
June 30, 2003
-Capital Projects Funds
Public
Non -Major
General
Capital
Financing
Governmental
Fund
Improvement
Authority
Funds
Totals
Assets:
Cash and investments (note 2)
$ 22,850,674
-
-
7,918,594
30,769,268
Cash and investments with
fiscal agent (note 2)
-
-
6,369,004
614,143
6,983,147
Accounts receivable, net
213,859
-
-
39,718
253,577
Interest receivable
134,000
-
-
-
134,000
Due from other funds (note 3)
201,141
1,209,013
-
-
-
917,614
1,410,154
1,929,753
Due from other governments
1,012,139
-
Total assets
$ 24,411,813
1,209,013
6,369,004
9,490,069
41,479,899
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ 877,918
723,47 8
-
206,616
1,808,012
Accrued payroll
183,789
-
5,517
189,306-
Deposits
996,480
-
-
996,480
Due to other Rinds (note 3)
-
137,262
649,143
623,749
1,410,154
Deferred revenue
-
-
79,956
-
-
623,909
-
623,909
79,956
Retentions payable
Total liabilities
2,058,187
940,696
649,143
1,459,791
5,107,817
Fund balances:
Reserved for encumbrances
Unreserved:
Reported in:
General fund
Special revenue funds
Debt service fund
Capital projects Rinds
Total fund balances
440,407 268,317 40,020 748,744
21,913,219 - 21,913,219
- 7,264,535 7,264,535
614,143 614,143
5,719,861 111,580 5,831,441
22,353,626 268,317 5,719,861 8,030,278 36,372,082
Total liabilities and 4 9,490,069 41,479,899
fund balances $ 24,411,813 1,209,013 6,369,00
See accompanying notes to the basic financial statements.
16
Governmental Funds
Reconciliation to the Balance Sheet of Governmental Funds
to the Statement of Net Assets
June 30, 2003
Fund balances of governmental funds
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets, net of depreciation, have not been included as financial
resources in governmental fund activity.
Long-term debt and compensated absences from the General Long Term Debt
Account Group that have not been included in the governmental fund activity:
Revenue bonds payable
Compensated absences
Unamortized issuance costs
Unamortized discount and deferred charges
Revenues that are measurable but not available. Amounts are recorded as
deferred revenue under the modified accrual basis of accounting.
$ 36,372,082
14,956,414
(13,755,000)
(191,642)
631,750
137,550
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The assets and
liabilities of the internal service funds must be added to the statement of net
assets. 1,656,517
Net assets of governmental activities $ 40,431,580
See accompanying notes to the basic financial statements.
17
CITY OF DIAMOND BAR
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2003
Capital Projects Funds
Public
Non -Major
General
Capital
Financing Governmental
Fund Improvement
Authority
Funds
Totals
Revenues:
Taxes
$ 7,432,575
-
-
-
7,432,575
Special assessments
-
-
-
557,601
55701
Intergovernmental
3,463,241
240,000
-
4,899,615
8,602,856
Charges for services
-
-
-
706,137
706,137
Fines and forfeitures
813,617
-
-
-
813,617
Licenses and permits
1,466,557
570
-
-
1,467,127
Investment income
439,455
-
55,521
163,946
13
658,922
74,818
Other
74,805
-
-
Total revenues
13,690,250
240,570
55,521
6,327,312
20,313,653
Expenditures:
Current:
General government
3,162,443
-
321
752
3,163,516
Public safety
4,770,468
-
-
202,780
4,973,248
Highway and streets
-
-
-
1,006,768
1,006,768
Public works
1,873,428
-
-
799,660
2,673,088
Parks, recreation and culture
1,946,025
-
-
-
1,946,025
Community development
-
-
-
135,525
135,525
Capital outlay
-
8,057,482
-
-
8,057,482
Debt service:
Interest charges
-
-
-
86,562
86,562
Fiscal charges
-
-
449,190
-
449,190
Total expenditures
11,752,364
8,057,482
449,511
2,232,047
22,491,404
Excess (deficiency) of
l revenues over (under)
expenditures
1,937,886
(7,816,912)
(393,990)
4,095,265
(2,177,751)
Other financing sources (uses):
Bonds issued
-
-
13,755,000
-
13,755,000
Bonds discount and issuance costs
-
-
(769,300)
-
(769,300)
Transfers in (note 3)
Transfers out (note 3)
1,029,617
(666,016)
7,908,956
-
(6,871,849)
1,321,275
(2,915,378)
10,259,848
(10,453,243)
Total other financing
sources (uses)
363,601
7,908,956
6,113,851
(1,594,103)
12,792,305
Net change in fund balances
I,
2,301,487
92,044
5,719,861
2,501,162
10,614,554
I_ Fund balances at beginning of year,
as restated (note 14)
20,052,139
176,273
-
5,529,116
25,757,528
Fund balances at end of year
$ 22,353,626
268,317
5,719,861
8,030,278
36,372,082
See accompanying notes to the basic financial statements.
18
Mr=
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2003
Changes in fund balances of governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
$ 10,614,554
Governmental funds report capital outlay as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useful lives as depreciation expense. This is the amount by which
capital outlay exceeded depreciation in the current period. 7,102,468
Proceeds from the issuance of bonds are reported as other financing sources
in the governmental funds. The issuance of bonds increases liabilities in the
statement of net assets, but does not result in an increase in the statement of
activities. (13,755,000)
Bond issuance costs, discounts and deferred charges are recorded as an
expenditure in the governmental funds while full accrual requires the
amortization of these costs over the life of the debt. 769,300
Compensated absences expense reported in the statement of activities does
not require the use of current financial resources and therefore is not
reported as expenditure in governmental finds. (42,359)
Revenues that are measurable but not available. Amounts are recorded as
deferred revenue under the modified accrual basis of accounting. 64,039
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The net
revenues (expenses) of the internal service funds are reported with
governmental activities. 127,023
Changes in net assets of governmental activities. $ 4,880,025
See accompanying notes to the basic financial statements.
19
Proprietary Funds
Statement of Net Assets
June 30, 2003
Assets:
Current assets:
Cash and investments
Accounts receivable
Total current assets
Property, plant and equipment:
Machinery and equipment
Less accumulated depreciation
Net property, plant and equipment
Total assets
Net assets:
Invested in capital assets, net of related debt
Unrestricted
Total net assets
See accompanying notes to the basic financial statements.
20
Internal
Service
Funds
$ 1,511,807
91,718
1,603,525.
98,323
(45,331)
52,992
1,656,517
52,992
1,603,525
$ 1,656,517
CITY OF DIAMOND BAR
Proprietary Funds
Statement of Revenues, Expenses and Changes in Fund Net Assets
Year ended June 30, 2003
Internal
Service
Operating revenues:
Insurance deposits $ 91,718
Total operating revenues 91,718
Operating expenses:
Insurance premiums
162,064
Depreciation
19,032
Maintenance
4,644
Total operating expenses
185,740
Operating income (loss)
(94,022)
Non-operating revenues:
Investment income
27,650
Total non-operating revenues
27,650
Income (loss) before transfers
(66,372)
Transfers in (note 3)
193,395
Change in net assets
127,023
Total net assets at beginning of year
1,529,494
Total net assets at end of year
$ 1,656,517
See accompanying notes to the basic financial statements.
21
Proprietary Funds
Statement of Cash Flows
Year ended June 30, 2003
Internal
Service
Funds
Cash flows from operating activities:
Insurance deposits
$ 72,838
Insurance payments
Cash paid for operating expenses
(5,815)
(4,644)
Net cash provided by operating activities
62,379
Cash flows from noncapital financing activities:
Cash transferred from other funds
193,395
Net cash provided by noricapital financing activities
193,395
Cash flows from capital and related activities:
Purchase of capital assets
(24,330)
Net cash provided by (used for) capital and related activities
(24,330)
Cash flows from investing activities:
Interest received from investments
27,650
Net cash provided by investing activities
27,650
Net increase in cash and cash equivalents
259,094
Cash and cash equivalents at beginning of year
1,252,713
Cash and cash equivalents at end of year
$ 1,511,807
Reconciliation of net operating income (loss) to net cash provided by
operating activities:
Operating income (loss)
$ (94,022)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
19,032
(Increase) decrease in accounts receivable
(18,880)
156,249
(Increase) decrease in prepaid insurance
Net cash provided by operating activities
$ 62,379
Supplemental information:
During the year ended June 30, 2003, there were no noncash investing, capital or
financing activities.
See accompanying notes to the basic financial statements.
22
(This page intentionally left blank)
23
.~�~7-` ~
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
Year ended June 30, 2003
(1) Summary of Significant Accounting Policies
The City of Diamond Bar (City) was incorporated April 18, 1989 under the general laws of
the state of California and enjoys all the rights and privileges pertaining to such "General
Law" cities. The City is a municipal corporation governed by an elected five -member
council.
The accounting policies of the City conform to generally accepted accounting principles.
The following is a summary of the more significant policies.
(a) Reporting Entity
As required by generally accepted accounting principles, these financial statements
present the City of Diamond Bar and its component units, entities for which the City
is considered to be financially accountable. The City is considered to be financially
accountable for an organization if the City appoints a voting majority of that
organization's governing body and the City is able to impose its will on that
organization or there is a potential for that organization to provide specific financial
benefits to or impose specific financial burdens on the City. The City is also
considered to be financially accountable for an organization if that organization is
fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or
charges, or issue bonded debt without approval from the City). In certain cases,
other organizations are included as component units if the nature and significance of
their relationship with the City are such that their exclusion would cause the City's
financial statements to be misleading or incomplete. A brief description of each
component unit follows:
• The Diamond Bar Community Redevelopment Agency (Agency) was
established February 6, 1996, pursuant to the State of California Health and
Safety Code Section 33000 entitled, "Community Redevelopment Law."
Although it is a legally separate entity from the City, the Agency is reported
as if it were part of the City because of its purpose to prepare and execute
plans for the improvement, rehabilitation and redevelopment of blighted areas
within the territorial limits of the City. According to the California Supreme
Court's decision on August 9, 2000, the Agency's Redevelopment Plan was
invalid. No activities were made during the year ended June 30, 2003.
Accordingly, no financial statements of the Agency were issued.
• The Diamond Bar Public Financing Authority was formed on November 19,
2002. The purpose of the Diamond Bar Public Financing Authority is to issue
debt to finance public improvements and other capital purchases for the City
and the Community Redevelopment Agency.
Since the City Council serves as the governing board for these component units, all
of the City's component units are considered to be blended component units.
Blended component units, although legally separate entities, are in substance, part of
the City's operations and so data from these units are reported with the interfund data
of the primary government.
24
Notes to the Basic Financial Statements
(Continued)
(1) Summary of -Significant Accounting Policies, (Continued)
(b) Measurement Focus and Basis of Accounting
The basic financial statements of the City are composed of the following:
® Government -wide financial statements
® Fund financial statements
® Notes to the basic financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and Interpretations, APB Opinions, and Accounting Research Bulletins
that were issued on or before November 30, 1989 that do not conflict with or
contradict GASB pronouncements. FASB pronouncements issued after November
30, 1989 are not followed in preparation of the accompanying financial statements.
Government -wide Financial Statements
Government -wide financial statements display information about the reporting
government as a whole, except for its fiduciary activities. These statements include
separate columns for the governmental and business -type activities of the primary
government (including its blended component units), as well as its discretely
presented component units. The City of Diamond Bar has no business -type activities
or discretely presented component units. Eliminations have been made in the
Statement of Activities so that certain allocated expenses are recorded only once (by
the function to which they were allocated). However, general government expenses
have not been allocated as indirect expenses to the various functions of the City.
Government -wide financial statements are presented using the economic resources
measurement focus and accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and
obligations of the reporting government are reported in the government -wide
financial statements. Basis of accounting refers to when revenues and expenses are
recognized in the accounts and reported in the financial statements. Under the accrual
basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting
from exchange and exchange -like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of
GASB Statement No. 33.
Program revenues include charges for services and payments made by parties outside
the reporting government's citizenry if that money is restricted to a particular
program. Program revenues are netted with program expenses in the statement of
activities to present the net cost of each program.
25
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(b) Measurement Focus and Basis of Accounting, (Cont
Amounts paid to acquire capital assets are capitalized as assets in the government -
wide financial statements, rather than reported as an expenditure. Proceeds of long-
term debt are recorded as a liability in the government -wide financial statements,
rather than as an other financing source. Amounts paid to reduce long-term
indebtedness of the reporting government are reported as a reduction of the related
liability, rather than as an expenditure.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis
of separate funds, each of which is considered to be a separate accounting entity. The
operations of each fund are accounted for with a separate set of self -balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures
or expenses, as appropriate. Governmental resources are allocated to and accounted
for in individual funds based upon the purposes for which they are to be spent and
the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental and
proprietary Rinds are presented after the government -wide financial statements.
These statements display information about major funds individually and non -major
funds in the aggregate for governmental funds. The City does not have fiduciary
funds.
Governmental Funds
In the fund financial statements, governmental funds are presented using the
modified -accrual basis of accounting. Their revenues are recognized when they
become measurable and available as net current assets. Measurable means that the
amounts can be estimated, or otherwise determined. Available means that the
amounts were collected during the reporting period or soon enough thereafter to be
available to finance the expenditures accrued for the reporting period. The City uses
an availability period of sixty days.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal
period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
26
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(b) Measurement Focus and Basis of Accounting, (Continued)
Revenue recognition is subject to the measurable and availability criteria for the
governmental funds in the fund financial statements. Exchange transactions are
recognized as revenues in the period in which they are earned (i.e., the related goods
or services are provided). Locally imposed derived tax revenues are recognized as
revenues in the period in which the underlying exchange transaction upon which they
are based takes place. Imposed nonexchange transactions are recognized as revenues
in the period for which they were imposed. If the period of use is not specified, they
are recognized as revenues when an enforceable legal claim to the revenues arises or
when they are received, whichever occurs first. Government -mandated and voluntary
nonexchange transactions are recognized as revenues when all applicable eligibility
requirements have been met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets. The reported fund
balance (net current assets) is considered to be a measure of "available spendable
resources." Governmental fund operating statements present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net
current assets. Accordingly, they are said to present a summary of sources and uses
of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are
reported on their balance sheets in spite of their spending measurement focus.
Special reporting treatments are used to indicate, however, that they should not be
considered "available spendable resources," since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent
receivables are deferred until they become current receivables. Noncurrent portions
of other long-term receivables are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities.
Since they do not affect net current assets, such long-term amounts are not
recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year
that resources were expended, rather than as fund assets. The proceeds of long-term
debt are recorded as an other financing sources rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
27
�Wfjm • • • CA s
Notes to the Basic Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
(b) Measurement Focus and Basis of Accounting, (Continued)
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted
resources.
PrODrietary Funds
The City's internal service funds are proprietary funds. In the fund financial
statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when the
related goods or services are delivered. In the fund financial statements, proprietary
funds are presented using the economic resources measurement focus. This means
that all assets and all liabilities (whether current or noncurrent) associated with their
activity are included on their balance sheets. Proprietary fund type operating
statements present increases (revenues) and decreases (expenses) in total net assets.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the City's internal service
funds are charges to customers for sales and services. Operating expenses for internal
service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this deffilition
are reported as noncapital revenues and expenses.
Amounts paid to acquire capital assets are capitalized as assets in the internal service
fund financial statements, rather than reported as an expenditure. Proceeds of long-
term debt are recorded as a liability in the internal Service fund financial statements,
rather than as an other financing source. Amounts paid to reduce long-term
indebtedness of the internal service fund are reported as a reduction of the related
liability, rather than as an expenditure.
(c) Major Governmental Funds and Internal Service Fund Types
The City's major governmental funds are as follows:
General Fund — The primary fund of the City is used to account for all revenue and
expenditures of the City not legally restricted as to use. A broad range of municipal
activities are provided through this fund including City Manager, City Attorney,
Finance, City Clerk, Public Works, Building and Safety and Parks and Recreation.
28
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(c) Major Governmental Funds and Internal Service Fund Types, (Continued)
Public Financing Authority Capital Project Fund — To account for the financing of
public improvements and other capital purchases for the City.
Capital Improvement Fund — To account for the costs of constructing street
improvements, park improvements, and other public improvements not normally
included within the other Capital Projects funds. Financing is provided by developer
fees and interfund transfers from the Special Revenue Funds and the General Fund.
Other fund types of the City are as follows:
Internal Service Funds:
Self -Insurance Fund — To account for payments made for the City's general liability
insurance premium.
Equipment Replacement Fund — To account for the replacement of the City's rolling
equipment stock or vehicles.
Computer Replacement Fund — To account for the replacement and/or enhancements
of the City's computer-related equipment.
(d) Explanation of Differences between Governmental Funds Balance Sheet and the
Statement of Net Assets
The "total fund balances" of the City's governmental funds $36,372,082 differs from
"net assets" of governmental activities $40,431,580 reported in the statement of net
assets. This difference primarily results from the long-term economic focus of the
statement of net assets versus the spending measurement focus of the governmental
balance sheets.
Capital Related Items
When capital assets that are to be used in goverm-nental activities are purchased or
constructed, the cost of those assets are reported as expenditures in governmental
funds. However, the statement of net assets includes those capital assets among the
assets of the City as a whole.
29
Notes to the Basic Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
(d) Explanation of Differences between
Cost of capital assets
Accumulated depreciation
Total capital assets, net
Long -Term Liabilities Transactions
funds Balance Sheet and the
$18,033,649
(3,077,235)
$14,956,414
Long-term liabilities applicable to the City's governmental activities are not due and
payable in the current period and accordingly are not reported as fund liabilities. All
liabilities (both current and long-term) are reported in the statement of net assets.
Bonds payable $13,755,000
Compensated absences payable 191,642
$13,946,642
Deferred Revenue
Because the focus of governmental funds is on short term financing, some assets will
not be available to pay for current period expenditures. Those assets are offset by
deferred revenue in governmental funds, and thus are not included in fund balances.
Deferred revenue eliminated
Internal Service Fund
$623,909
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The assets and
liabilities of the internal service funds are included in governmental activities in the
statement of net assets.
Net assets added
$1,656,517
Bond Costs
Costs of issuance, discounts and deferred charges of new debt are expensed in the
governmental funds. Under full accrual, these costs must be deferred and amortized
over the life of the debt.
30
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(d) Explanation of Differences between Governmental Funds Balance Sheet and the
Statement of Net Assets, (Continued)
Issuance costs $631,750
Discount 137,550
$769,300
Reclassifications and Eliminations
Interfimd balances must generally be eliminated in the governmental statements,
except for residual amounts due between governmental activities. Any allocations
must reduce the expenses of the function from which the expenses are being
allocated, so that the expenses are reported only once in the function in which they
are allocated.
31
(This page intentionally left blank)
32
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(d) Explanation of Differences between Governmental Funds Balance Sheet
and the Statement of Net Assets, (Continued)
Total Capital Long-term
Governmental Related Debt
Funds Items Transactions
Assets:
Cash and investments
Cash and investments with fiscal agent
Accounts receivable, net
Interest receivable
Due from other funds
Due from other governments
Unamortized issuance costs
Capital assets, net
Total assets
Liabilities:
Accounts payable
Accrued payroll
Deposits
Due to other funds
Deferred revenue
Retentions payable
Compensated absences payable
Bonds payable, net of discount
Total liabilities
Fund balances/net assets
Total liabilities and fund
balances/net assets
$ 30,769,268 - -
6,983,147 - -
253,577 - -
134,000 - -
1,410,154 - -
1,929,753 - -
- - 631,750
- 14,956,414 -
$ 41,479,899 14,956,414 631,750
$ 1,808,012 - -
189,306 - -
996,480 - -
1,410,154 - -
623,909 - -
79,956 - -
- - 13,617,450
5,107,817 - 13,617,450
36,372,082 14,956,414 (12,985,700)
$ 41,479,899 14,956,414 631,750
33
Compensated Certain Internal Reclassifications Government -wide
Absences Deferred Service and Financial
Payable Revenue Funds Eliminations Statements
1,511,807 - 32,281,075
- - 6,983,147
91,718 - 345,295
_ - 134,000 qP
(1,410,154) - ;�
1,929,753
- - 631,750
52,992 - 15,009,406
1,656,517 (1,410,154) 57,314,426
1,808,012
189,306 �ci
996,480
- (1,410,154) -
(623,909) - -
_ 79,956
191,642 - - - 191,642
13,617,450
191,642 (623,909) - (1,410,154) 16,882,846
(191,642) 623,909 1,656,517 - C40,4315580
1,656,517 (1,410,154) 57,314,426
34
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(e) Explanation of Difference between Governmental Funds Operating Statements and
the Statement of Activities
The "net changes in fund balances" for governmental funds of $10,614,554 differs
from the "changes in net assets" for the governmental activities of $4,880,025
reported in the statement of activities. The differences arise primarily from the long
term economic focus of the statement of activities versus the current financial
resources focus of the governmental funds. The effects of the differences is
illustrated below.
Capital Related Items
When capital assets (land, buildings, equipment) that are to be used in governmental
activities are purchased or constructed, the cost of those assets are reported as
expenditures in governmental funds. However, in the statement of activities, the cost
of those assets is allocated over their useful lives and reported as depreciation
expense. As a result, Rind balance increases by the amount of financial resources
expended, whereas net assets decrease by the amounts of depreciation expense
charged for the year.
Capital outlay $7,524,682
Depreciation expense (422,214)
$7,102,468
Long-term Debt Transactions
Some expenses reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.
Net change in compensated absences 42,359
Bond issuance costs are reported as an expenditure in governmental funds and, thus,
has the effect of reducing the fund balance because current financial resources have
been used.
Proceeds from issuance of debt $13,755,000
Capitalization of bond costs (769,300)
$12,985,700
35
Notes to the Basic Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
(e) Explanation of Difference between Governmental Funds Operating Statements and
Deferred Revenue
Because the focus of governmental funds is on short term financing, some assets will
not be available to pay for current period expenditures. Those assets are offset by
deferred revenue in governmental funds, and thus are not included as revenues.
$64,039
Internal Service Fund
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management, to individual funds. The adjustments for
internal service funds "closes" those funds by charging additional amounts to
participating governmental activities to completely cover the internal service fund's
cost for the year.
.$127,023
Reclassifications and Eliminations
Interfund balances must generally be eliminated in the governmental statements,
except for residual amounts due between governmental activities. Any allocations
must reduce the expenses of the function from which the expenses are being
allocated, so that expenses are reported only once — in the function in which they are
allocated.
36
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(1) Sum.mary of Significant Accounting Policies. (Continued)
(e) Explanation of Differences between Governmental Funds Operating Statements
and the Statement of Net Assets. (Continued)
Total Capital Long-term Compensated
Governmental Related Debt Absences
Funds Items Transactions Payable
Revenues:
Taxes
$ 7,432,575
-
- -
Special assessments
557,601
-
- -
Intergovernmental
8,602,856
-
- -
Charges for services
706,137
-
- -
Fines and forfeitures
813,617
-
- -
Licenses and permits
1,467,127
-
- -
Investment income
658,922
-
- -
Other
74,818
-
- -
Total revenues
20,313,653
-
- -
Expenditures:
Current:
General government
3,163,516
77,112
- 22,532
Public safety
4,973,248
15,201
- -
Highways and Streets
1,006,768
-
- _
Public works
2,673,088
534,258
- 6,677
Community development
135,525
-
- -
Parks, recreation and cutlure
1,946,025
328,443
- 13,150
Capital outlay
8,057,482
(8,057,482)
- -
Debt service:
Interest charges
86,562
-
- -
Fiscal charges
449,190
-
- _
Total expenditures
22,491,404
(7,102,468)
- 42,359
Other financing sources (uses):
Transfers in
10,259,848
-
- -
Transfers out
(10,453,243)
-
Proceeds of debt
13,755,000
-
(13,755,000) -
Bonds discount and issuance costs
(769,300)
-
769,300 -
Total other financing sources
(uses)
12,792,305
-
(12,985,700)
Net change in fund balances/net assets
10,614,554
7,102,468
(12,985,700) (42,359)
Fund balances/net assets at beginning
of year, as restated
25,757,528
7,853,946
- (149,283)
Fund balances/net assets at end of year
$ 36,372,082
14,956,414
(12,985,700) (191,642)
37
Certain Internal Reclassifications Government -wide
Deferred Service and Financial
B1nnsnne Izonlo Eliminations Statements
------- --------'
- - - 7,432,575
_ - - 557,601
64,039-
'
- 8,666,895
- -
- 706'137
- -
- 813j517
- -
- 1/407"127
- 27"650
- 686,572
- -
- 74,818
64,039 27,650
- 20,405,342
- 5}9(22
- 3'31508C2
_ -
- 4�908/449
- -
- ^,""",'""
- 20,560
- 3234'591
- - '
- 195,525
- 21,532
- -
- 2 ,309 ,l50
_ -
- - - 06,562
- - - 449'190
-------' --------'
-
94,022 - 15,525,317
-
193'395 O0453�243\ -
- - 10,453,243 -
- - - _
- - - _
-
193,395 - -
64,039 127,023 - 4,800,025
559,870 1,529,494- 35'551'555
623,909 1j656i517 - 40431,500
==========
. 38
• •�M UT .1
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(f) Investments
For financial reporting purposes, investments are adjusted to their fair value
whenever the difference between fair market value and the carrying amount is
material.
Changes in fair value that occur during a fiscal year are recognized as investment
income reported for that fiscal year. Investment income includes interest earnings,
changes in fair value, and any gains or losses realized upon the liquidation or sale of
investments.
The City pools cash and investments of all funds, except for assets held by fiscal
agents. Each fund's share in this pool is displayed in the accompanying financial
statements as cash and investments. Investment income earned by the pooled
investments is allocated to the various funds based on each fund's average cash and
investment balances.
(g) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-
term, highly liquid investments that are both readily convertible to known amounts
of cash or so near their maturity that they present insignificant risk of changes in
value because of changes in interest rates. Cash equivalents also represent the
proprietary funds' share in the cash and investment pool of the City of Diamond Bar.
Cash equivalents have an original maturity date of three months or less from the date
of purchase. For purposes of the statement of cash flows, the entire balance of cash
and investments on the combined balance sheet for the internal service fund is
considered cash and cash equivalents.
(h) Capital Assets
Capital assets are recorded at cost where historical records are available and at an
estimated historical cost where no historical records exist. Contributed capital assets
are valued at their estimated fair market value at the date of the contribution.
Generally, capital asset purchases in excess of $1,500 are capitalized if they have an
expected useful life of three years or more. The straight-line method is used for
depreciation.
39
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(h) Capital Assets, (Continued)
Capital assets include additions to public domain (infrastructure) general fixed assets
consisting of certain improvements including roads, streets, sidewalks, medians and
storm drains. Public domain assets acquired prior to July 1, 2002 have not been
included in the accompanying financial statements. The City expects to value and
record all infrastructure asset data in its entirety by fiscal year ended June 30, 2007.
The following schedule summarizes fixed asset useful lives:
Buildings and improvements 10-20 years
Equipment and furniture 3-5 years
Vehicles 5 years
Infrastructure 10-50 years
(i) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is employed as an extension of 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.
Compensated Absences
Vacation and sick leave time begin to accumulate as of the first day of employment
to a maximum of 160 hours. Employees who accumulate sick leave in excess of 160
hours are paid for the excess annually at one half the employee's current wage rate.
In accordance with GASB Statement No. 16, a liability is recorded for unused
vacation and similar compensatory leave balances since the employees' entitlement
to these balances are attributable to services already rendered and it is probable that
virtually all of these balances will be liquidated by either paid time off or payments
upon termination or retirement.
40
I on
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
0) Compensated Absences, (Continued)
Under GASB Statement No. 16 a liability is recorded for unused sick leave balances
only to the extent that it is probable that the unused balances will result in
termination payments. This is estimated by including in the liability the unused
balances of employees currently entitled to receive termination payment, as well as
those who are expected to become eligible to receive termination benefits as a result
of continuing their employment with the City. If an employee terminates with a
minimum of one year of service, the employee is entitled to receive 10% of the value
of his unused sick leave. The percentage increases to 50% for two to three years of
service and 100% of the value of his unused sick leave upon the completion of more
than three years of continuous employment.
(k) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to
1% of assessed value, plus other increases approved by the voters. The property
taxes go into a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City of Diamond Bar accrues only those taxes which are received
from the county within 60 days after year-end:
Lien date
Levy date
Due dates
Delinquent dates
(2) Cash and Investments
Cash and investments are reported as follows:
March I
July 1
November 1 and February I
December 11 and April 11
Statement of Net Assets:
Cash and investments
Cash and investments with fiscal agent
41
$32,281,075
6,983,147
$39,264,222
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Cash and investments consist of the following at June 30, 2003:
Cash and investments:
Imprest cash on hand
Demand deposits
Money market mutual funds
Local Agency Investment Fund
Mutual funds
$ 300
(179,788)
903,276
37,892,678
647,756
Total $ 39,264,222
The City is generally authorized under Section 53601 of the California Government Code
and the City's investment policy to invest in demand deposits with financial institutions;
passbook savings accounts; certificates of deposit; negotiable certificates of deposits;
banker's acceptances; U.S. Treasury issues; Federal agency securities; commercial paper;
repurchase agreements (repos); Local Agency Investment Fund (LAIF) of the State of
California; medium term corporate notes; and money market funds.
Deposits
Under the California Government Code, a financial institution is required to secure deposits
made by state or local governmental units by pledging securities held in the form of an
undivided collateral pool. The market value of the pledged securities in the collateral pool
must equal at least 110% of the total amount deposited by the public agencies. California
law also allows financial institutions to secure City deposits by pledging first trust deed
mortgage notes having a value of 150% of the secured public deposits.
Deposits of cities and other state or local governments are classified in three categories to
give an indication of the level of custodial risk assumed by the entity. Category 1 includes
deposits that are insured or collateralized with securities held by the City or its agent in the
City's name. Category 2 includes deposits collateralized with securities held by the
pledging financial institution's trust department or agent in the City's name. Category 2 also
includes deposits collateralized by an interest in an undivided collateral pool held by an
authorized Agent of Depository and subject to certain regulatory requirements under State
law. Category 3 includes deposits collateralized with securities held by the pledging
financial institution, or by its trust department or agent but not in the City's name. Category
3 also includes any uncollateralized deposits. Deposits are categorized as follows:
42
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Category Bank Book
Form of Deposit 1 2 3 Balance Balance
Deposits held by City:
Demand deposits $93,303 - 93,303 (179,788
Total deposits $93,303
Investments
Investments of cities and other state or local governments are classified in three categories to
give an indication of the level of custodial risk assumed by the entity at year-end. Category
1 includes .investments that are insured or registered or for which the securities are held by
the City or the City's custodial agent (which must be a different institution other than the
party through which the City purchased the securities) in the City's name. Investments held
"in the City's name" include securities held in a separate custodial or fiduciary account and
identified as owned by the City in the custodian's internal accounting, records. Category 2
includes uninsured and unregistered investments for which the securities are held by the
dealer's agent in the City's name (or by the trust department of the dealer if the dealer was a
financial institution and another department of the institution purchased the securities for the
City). Category 3 includes uninsured and unregistered investments for which the securities
are held by the dealer's agent but not in the City's name. Category 3 also includes all
securities held by the broker-dealer agent of the City (the party that purchased the securities
for the City) regardless of whether or not the securities are being held in the City's name:
Category
Form of Investment 1 2 3
Investments held by City not
subject to categorization:
Investment in State Investment Pool - LAIF
Money market mutual funds
Investments held by fiscal agents
not subject to categorization:
Investment in State Investment Pool - LAIF
Mutual funds
Total investments
43
Carrying Amount
$31,557,287
903,276
6,335,391
647,756
$39,44�3710
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by California Government Code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the City's investment in this pool is
reported in the accompanying financial statements at amounts based upon the City's pro -rata
share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-
backed securities, other asset-backed securities, loans to certain state funds, and floating rate
securities issued by federal agencies, government-sponsored enterprises, and corporations.
(3) Interfand Receivables, Payables and Transfers
Current interfund receivables and payables balances at June 30, 2003 were as follows:
i
Due from other funds Due to other funds Amount
General Fund Non -Major Governmental Fund $ 63,879 (A)
Capital Improvement Fund 137,262 (A)
Capital Improvement Fund Non -Major Governmental Fund
Public Financing Authority
Capital Project Fund
(A) Short-term borrowing to cover temporary cash shortfalls.
(B) Short-term borrowing to cover construction project expenditures.
44
559,870 (B)
649,143 (B)
$1,410,154
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(3) Interfund Receivables, Payable and Transfers, (Continued)
Transfers in and out for the year ended June 30, 2003 were as follows:
Transfers In Transfers Out Amount
General Fund Non -Major Governmental Funds $ 1,029,617
Capital Improvement Fund General Fund 476,952 (A)
Public Financing Authority
Capital Project Fund 5,550,574 (B)
Non -Major Governmental Funds 1,881,430 (C)
Non -Major Governmental Funds Public Financing Authority
Capital Project Fund 1,321,275 (B)
Internal Service Funds General Fund 193,395
$10,453,243
(A) To provide capital projects funds with the funding necessary to accomplish those
projects approved by the City Council.
(B) To transfer the bond proceeds for the Community/Senior Center project.
(C) To transfer the fundings for reimbursement of various capital projects.
45
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(4) Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2003 was as
follows:
46
Balance at
Balance at
June 30, 2002
Additions
Deletions
June 30, 2003
Capital assets being
depreciated:
Building and improvements
$4,430,820
75,504
-
4,138
-
16,679
4,430,820
62,963
Furniture and fixtures
` Vehicles and equipment
1,006,009
164,903
58,261
1,112,651
4
Total cost of
depreciable assets
5,512,333
169,041
74,940
5,606,434
Less accumulated
depreciation for:
Buildings and
improvements
1,957,461
328,443
3,090
-
16,679
2,285,904
38,750
Furniture and fixtures
j Vehicles and equipment
52,339
746,460
902681
39,229
797,912
Total accumulated
depreciation
2,756,260
422,214
55,908
3,122,566
Net depreciable assets
2,756,073253
173
19,032
2,4832868
1 Capital assets not
depreciated:
Land
5,169,898
82,567
-
5,252,465
Construction in progress
-
7,273,073
-
7,2732073
l'
Total capital assets,
not depreciated
5,169,898
7,355,640
-
12,525,538
Capital assets, net
$7,925,971
7,102,467
19,032
15 009,406
Depreciation expense was charged in the following functions in the Statement of Activities:
'i
General government
$ 77,112
Public safety
15,201
Public works
1,458
Parks, recreation and culture
328,443
Total
$422,214
46
Notes to the Basic Financial Statements
(Continued)
(5) Long-term Liabilities
Changes in long-term liabilities during the year ended June 30, 2003 were as follows:
Governmental activities:
2002 Series A
Variable Rate Lease
Year ending
Revenue Bonds
June 30
Amount Due Amount Due
Balance at
2005
Balance at
Within One Beyond One
July 1, 2002
Additions Retirements
June 30, 2003
Year Year
Bonds payable:
11,475
2008
265,000
Revenue bonds $ -
13,755,000 -
13,755,000
- 13,755,000
Unamortized discount -
(137,550) -
(137,550)
- (137,550)
Compensated absences 149,283
42,359 -
191,642
- 191,642
$142,283
13,652,802
3,195,000
143,775
Bonds Payable
In December 2002, the Diamond Bar Public Financing Authority issued $13,755,000 of
2002 Series A Variable Rate Lease Revenue Bonds to finance the construction of a
community/senior center project and other public improvements within the City. The bonds
are special limited obligations of the Authority payable solely from revenues, consisting
primarily of base rental payments paid by the City. The City purchased a 10 year 4.5%
interest rate cap. As of June 30, 2003, $13,755,000 of the bonds are outstanding.
Debt Service Requirements to Maturity
The following schedule summarizes the debt service to maturity requirements for
governmental activities bonds outstanding as of June 30, 2003:
47
2002 Series A
Variable Rate Lease
Year ending
Revenue Bonds
June 30
Principal
Interest
2005
$ 235,000
10,575
2006
240,000
10,800
2007
255,000
11,475
2008
265,000
11,925
2009
280,000
12,600
2010-2014
1,600,000
72,000
2015-2019
2,010,000
90,450
2020-2024
2,535,000
114,575
2025-2029
3,195,000
143,775
2030-2033
3,140,000
141,300
$13,755,000
�618975
47
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(5) Long-term Liabilities, (Continued)
Compensated Absences
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $191,642 at June 30, 2003 is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
(6) postemployment Benefits
The City does not provide postemployment benefits (other than pension benefits) for its
employees.
(7) Liability, Property and Workers' Compensation Protection
The City is a member of the California Joint Powers Insurance Authority (Authority). The
Authority is composed of 91 California public entities and is organized under a joint powers
agreement pursuant to California Government Code Section 6500 et seq. The purpose of the
Authority is to arrange and administer programs for the pooling of self-insured losses, to
purchase excess insurance or reinsurance, and to arrange for group -purchased insurance for
property and other coverages. The Authority's pool began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a 9 -member Executive Committee.
(a) Self -Insurance Programs of the Authority
General Liability
The City pays a primary deposit to cover estimated losses for a fiscal year (claims
year). Six months after the close of a fiscal year, outstanding claims are valued. A
retrospective deposit computation is then made for each open claims year. Costs are
spread to members as follows: the first $30,000 of each occurrence is charged
directly to the City; costs from $30,001 to $750,000 are pooled based on a
member's share of costs under $30,000; costs from $750,001 to $5,000,000 are
pooled based on payroll. Costs of covered claims above $5,000,000 are currently
paid by reinsurance. The protection for the City is $50,000,000 per occurrence and
$50,000,000 annual aggregate.
48
Notes to the Basic Financial Statements
(Continued)
(7) Liability, Property and Workers' Compensation Protection, (Continued)
Workers' Compensation
The City participates in the workers' compensation pool administered by the
Authority. Pool deposits and retrospective adjustments are valued in a manner
similar to the General Liability pool. The City is charged for the first $50,000 of
each claim. Costs are pooled above that level to $50,000. Costs from $50,001 to
$100,000 per claim are pooled based on the member's losses under its retention
level. Costs between $100,001 and $2,000,000 per claim are pooled based on
payroll. Costs between $2,000,000 and $5,000,000 are paid by excess insurance
purchased by the Authority. Costs in excess of $5,000,000 are pooled by the
members based on payroll.
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.
Environmental Liability
The City participates in the pollution legal liability and remediation legal liability
insurance which is available through the Authority. This policy covers sudden and
gradual pollution of scheduled property, streets, and storm drains owned by the City.
Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority
has a limit of $120,000,000 for the 3 -year period from July 1, 2002 through June 30,
2005. Each member of the Authority has a $10,000,000 limit during the 3 -year term
of the policy.
Fidelity Bonds
The City participates in the Blanket Fidelity Bond issued by the Authority to protect
the City from employee dishonesty, faithful performance, depositor's forgery,
computer fraud, crime -money and securities. This bond covers all employees, the
Treasurer, City Clerk and/or Tax Collector and any employee required by law to be
individually bonded. The bond's limit is $1,000,000 and the deductible is $2,500 per
occurrence.
(b) Adequacy of Protection
During the past three fiscal (claims) years none of the above programs of protection
have had settlements or judgments that exceeded pooled or insured coverage. There
have been no significant reductions in pooled or insured liability coverage from 1
coverage in the prior year. There were no significant outstanding claims at June 30,
2003. ((�
I�
1.
49
Notes to the Basic Financial Statements
(Continued)
(8) Fund Deficits
At June 30, 2003, the following funds had deficit balances:
4 Amount
Non -Major Govermnental: $559,870 (A)
ISTEA 64,033 (B)
Community Development Block Grant
(A) The deficit will be reimbursed through the California Department of Transportation.
(B) The deficit will be funded by future year allocations from Los Angeles County.
(9) Expenditures in Excess of Appropriations
Expenditures for the year ended June 30, 2003 exceeded the appropriations of the following
flinds/departments:
Budget
Actual
Variance
General:
Law enforcement
$4,255,450
401,130
4,256,945
419,932
(1,495)
(18,802)
Building and safety
Debt Service:
Public Financing Authority
28,874
87,314
(58,440)
Capital Projects:
Public Financing Authority
10,017
449,511
(439,494)
(10) Pension Plan
Plan Description
The City of Diamond Bar contributes to the California Public Employees Retirement System
gent multiple -employer public employee defined benefit pension tuber
PERS(PERS), an aprovides retirement, disability benefits, and death benefits to ps an
beneficiaries. PERS acts as a common investment and administrative agent for participating
public entities within the State of California. Copies of PERS' annual financial report may
be obtained from its executive office at 400 "P" Street, Sacramento, California 95814.
50
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(10) Pension Plan, (Continued)
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, 2003, the amount contributed by the City on behalf of the employees was
$150,977. The City is required to contribute at an actuarially determined rate calculated as a
percentage of covered payroll. The employer contribution rate for the year ended June 30,
2003 was 4.658% 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
For the year ended June 30, 2003, the City's annual pension cost (employer contribution) of
$100,464 for miscellaneous employees was equal to the City's required and actual
contributions. The required contribution was determined as part of the June 30, 2001,
actuarial valuation using the entry age normal actuarial cost method. 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 effect). 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
Fiscal Annual Pension Cost
Year (employer contribution)
6/30/01 $75,170
6/30/02 85,696
6/30/03 100,464
51
Percentage of Net Pension
APC Contributed Obligation
100% 0
100% 0
100% 0
U
Notes to the Basic Financial Statements
(10) Pension Plan, (Continued)
Entry Age
Normal
Valuation Accrued
Date Liabil
6/30/99 $2,161,899
6/30/00 2,587,205
6/30/01 2,999,675
(11) .Contingencies
(Continued)
Required Supplementary Information
The City is presently involved in other matters of litigation that have arisen in the normal
course of the City's business. City management believes, based upon consultation with the
City Attorney, that these cases, in the aggregate, are not expected to have a material adverse
financial impact on the City.
(12) Commitments
SIGMA -Internet, Inc. (SIGMAnet)
In May 2002, the City entered into an agreement with SIGMAnet. Under this agreement, for
aperiod of three years commencing with the ist quarter of calendar year 2002 and ending
with the 4"' quarter of year 2004, the City shall pay to SIGMAnet, each half-year period that
the City receives tax receipts from sales generated by SIGMAnet in excess of $100,000, an
amount each half-year period equal to 45% for the two half-year periods during 2002 and
50% for the four half-year periods in 2003 and 2004, of all sales tax receipts generated by
SIGMA -net and remitted to the City by the State Board of Equalization. I
(13) Change in Accounting Principle
During the year ended June 30, 2003, the City of Diamond Bar implemented GASB
Statement No. 34, which changed the financial reporting model of local governmental units.
As a result of GASB Statement No. 34, fund financial statements are required to be
presented with a focus on the major funds of that local government. Previously, financial
reporting for local governments had focused on reporting by fund type. The modified accrual
basis of accounting and the current financial resources measurement focus is used in the
fund financial statements for the governmental funds of the City.
52
Unfunded
Actuarial
Liability/
Annual
*UAAL
Value
(Excess
Funded
Covered
As a % of
of Assets
Assets
Status
Payroll
Payroll
$2,771,219
$(609,320)
128.2%
$1,581,092
(38.538%)
3,255,428
(688,223)
125.8%
1,867,943
(35.773%)
3,606,037
(606,362)
120.2%
2,110,121
(28.7%)
The City is presently involved in other matters of litigation that have arisen in the normal
course of the City's business. City management believes, based upon consultation with the
City Attorney, that these cases, in the aggregate, are not expected to have a material adverse
financial impact on the City.
(12) Commitments
SIGMA -Internet, Inc. (SIGMAnet)
In May 2002, the City entered into an agreement with SIGMAnet. Under this agreement, for
aperiod of three years commencing with the ist quarter of calendar year 2002 and ending
with the 4"' quarter of year 2004, the City shall pay to SIGMAnet, each half-year period that
the City receives tax receipts from sales generated by SIGMAnet in excess of $100,000, an
amount each half-year period equal to 45% for the two half-year periods during 2002 and
50% for the four half-year periods in 2003 and 2004, of all sales tax receipts generated by
SIGMA -net and remitted to the City by the State Board of Equalization. I
(13) Change in Accounting Principle
During the year ended June 30, 2003, the City of Diamond Bar implemented GASB
Statement No. 34, which changed the financial reporting model of local governmental units.
As a result of GASB Statement No. 34, fund financial statements are required to be
presented with a focus on the major funds of that local government. Previously, financial
reporting for local governments had focused on reporting by fund type. The modified accrual
basis of accounting and the current financial resources measurement focus is used in the
fund financial statements for the governmental funds of the City.
52
• D W • b : Mi,
Notes to the Basic Financial Statements
(Continued)
(13) Change in Accounting Principle, (Continued)
GASB Statement No. 34 also requires the presentation of government -wide financial
statements. Previously, government -wide financial statements were not required.
Government -wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. The economic resources
measurement focus requires that all (both current and long-term) assets and liabilities of the
City be reported in the government -wide financial statements. Additional information about
the effect of these changes on the financial reporting of the City can be found in note 1 to the
basic financial statements.
(14) Prior Period Adjustments
The accompanying financial statements reflect several reclassifications and adjustments
which resulted in a restatement of beginning fund balances of the Proposition A and C
Transit Funds. The prior period adjustment had no effect on the fund balances in total.
The following schedule summarizes the effect of the prior period adjustments to the opening
fund balances as of June 30, 2003:
Other Governmental Funds
Proposition A Proposition C
Transit Transit
Fund balances at beginning of year, as
previously reported $1,095,315
(a) Adjustment to properly reflect revenues
previously recognized in prior year 68,070
Fund balances at beginning of year, as restated $1,163,385
(15) Construction Commitments
The following material construction commitments existed at June 30, 2003:
Project Name
Golden Springs/Grand Improvements
Community/Senior Center
Traffic lights improvements
Sycamore Canyon improvements
53
Expenditures as of
June 30, 2003
$ 26,056
6,392,436
572,033
94,724
1,197,297
_6( 8,070
1,129,227
Remaining
Commitments
820,468
6,132,616
905,955
167,691
CITY OF DIAMOND BAR
Notes to the Basic Financial Statements
(Continued)
(16) Operating. Leases
The City leases building and office facilities under noncancelable operating leases. The total
costs for such leases were $257,040 for the year ended June 30, 2003. The future minimum
lease payments for the lease of building and office facilities are as follows:
Year ending June 30
2004 $ 261,887
2005 261,860
2006 254,457
2007 256,880
2008 261,727
2009-2011 802,145
Total $2,098,956
54
(This page intentionally left blank)
55
r � �R .� f f ,rrµ�� � ta9� � - ". 'n. x vD.w•a `�" ,,py,.
rF� t
1 f w
^`� C
I
REQUIRED SUPPLEMENTARY INFORMATION
56
(This page intentionally left blank.)
General Fund
General Fund — This fund has been classified as a major fund and is used to account for resources
traditionally associated with government which are not required legally or by sound financial
management to be accounted for in another fund.
57
Notes to Required Supplementary Information
Year ended June 30, 2003
(1) Budgetary Control and Accounting
The City adheres to the following general procedures in establishing its annual budget,
which is reflected in the accompanying basic financial statements:
• The annual budget adopted by the City Council provides for the general operations of the
City. It includes proposed expenditures and the means of financing them. Budgeted
appropriations lapse at the end of the year.
• The City Council approves total budgeted appropriations and amendments to
appropriations throughout the year. The City Council must approve budget appropriation
transfers between departments within a fund. The departments of the General Fund are
considered to be departments for purposes of this requirement. Actual expenditures may
not legally exceed budgeted appropriations at the department level.
• Annual budgets are adopted for all Governmental Fund Types on a basis substantially
consistent with Generally Accepted Accounting Principles (GAAP).
• The budgetary information shown for revenues and expenditures represents the original
adopted budget adjusted for any changes made by the City Council. For the year ended
June 30, 2003, supplemental appropriations in the amount of $7,186,476 were made.
• Formal budgetary information is employed as a management control device.
Commitments for materials and services, such as purchase orders and contracts are
recorded during the year as encumbrances to assist in controlling expenditures.
Appropriations which are encumbered at year end lapse, and then are added to the
following year's budgeted appropriations. However, encumbrances at year-end are
reported as reservations of fund balance.
(2) Expenditures in Excess of Appropriations
Expenditures exceeded appropriations in the General Fund as follows:
Law enforcement
Building and safety
Budget
Actual
$4,255,450
4,256,945
401,130
419,932
58
Variance
(1,495)
(18,802)
CITY OF DIAMOND BAR
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Year ended June 30, 2003
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
$
6,735,000
6,585,000
7,432,575
847,575
Taxes
Intergovernmental
3,229,200
3,287,200
3,463,241
176,041
Fines and forfeitures
447,000
1,730,950
571,500
1,513,800
813,617
1,466,557
242,117
(47,243)
Licenses and permits
804,000
504,000
439,455
(64,545)
Investment income
65,800
69,010
74,805
5,795
Other
13,011,950
12,530,510
13,690,250
1,159,740
Total revenues
Expenditures:
General government:
City Council
156,800
149,000
146,567
2,433
City Manager
551,775
294,150
519,625
233,425
502,914
217,374
16,711
16,051
City Clerk
190,000
110,000
66,942
43,058
City Attorney
340,750
312,400
304,092
8,308
Finance
133,250
113,300
100,753
12,547
Human resources
Information systems
249,800
230,750
208,040
22,710
73,515
General government
752,520
400,075
899,805
381,820
826,290
350,954
30,866
Public information
545,980
544,745
438,517
106,228
Planning
Public safety:
Law enforcement
4,344,750
4,255,450
4,256,945
(1,495)
Fire protection
7,360
80,250
7,360
87,750
7,359
79,044
1
8,706
Animal control
Emergency preparedness
12,510
503,000
12,510
401,130
7,188
419,932
5,322
(18,802)
Building and safety
2,167,200
2,047,686
1,873,428
174,258
Public works
Parks, recreation and culture
1,950,810
2,178,860
1,946,025
232,835
Total expenditures
12,680,980
12,485,616
11,752,364
733,252
Excess of revenues
330,970
44,894
1,937,886
1, 892,992
over expenditures
Other financing sources (uses):
1,166,860
1,274,510
1,029,617
(244,893)
Transfers in
(6,268,065)
(1,782,198)
(666,016)
1,116,182
Transfers out
Total other financing sources (uses)
(5,101,205)
(507,688_ )
363,601
871,289
Net change in fund balances
(4,770,235)
(462,794)
2,301,487
2,764,281
Fund balances at beginning of year
20 052,139
20,052,139
20,052,139
-
Fund balances at end of year
$ 15,281,904
19,589,345
22,353,626
2,764,281
59
(This page intentionally left blank.)
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SUPPLEMENTARY SCHEDULES
60
CITY OF DIAMOND BAR
Non -Major Governmental Funds
Combining Balance Sheet
June 30, 2003
Assets
Cash and investments
Cash and investments with fiscal agent
Accounts receivable, net
Due from other governments
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Due to other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved for encumbrances
Unreserved
Total fund balances
$ 8,764,346 614,143 111,580 9,490,069
$ 206,616 -
Debt
5,517 -
- 5,517
623,749 -
Service
Capital Project
- 623,909
Fund
Fund
Special
Public
Grand
Revenue
Financing
Avenue
Funds
Authority
Construction
Totals
$ 7,807,014
-
111,580
7,918,594
7
614,143
-
614,143
39,718
-
39,718
917,614
917,614
$ 8,764,346 614,143 111,580 9,490,069
$ 206,616 -
- 206,616
5,517 -
- 5,517
623,749 -
- 623,749
623,909 -
- 623,909
40,020 -
7,264,535 614,143
7,304,555 614,143
1,459,791
40,020
Total liabilities and fund balances $ 8,764,346 614,143 111,580 9,490,069
61
CITY OF DIAMOND BAR
752
Non -Major Governmental Funds
202,780
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2003
1,006,768
Debt
- 1,006,768
Service
Capital Project
Fund
Fund
Special Public
Grand
Revenue Financing
Avenue
Funds Authority
Construction Totals
Revenues:
Special assessments
Intergovernmental
Charges for services
Investment income
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Highway and streets
Public works
Community development
Debt service:
Interest charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources
(uses)
Net change in fund balances
Fund balances at beginning of year,
as restated
Fund balances at end of year
$ 557,601 - 557,601
4,899,615 - 4,899,615
706,137 - - 706,137
160,555 3,391 - 163,946
13 - - 13
6,323,921 3,391 - 6,327,312
-
752
- 752
202,780
-
- 202,780
1,006,768
-
- 1,006,768
799,660
-
- 799,660
135,525
-
- 135,525
-
86,562
- 86,562
2,144,733
87,314
- 2,232,047
4,179,188
(83,923)
4,095,265
623,209 698,066 - 1,321,275
(2,895,057) - (20,321) (2,915,378)
(2,271,848)
698,066
(20,321)
(1,594,103)
1,907,340
614,143
(20,321)
2,501,162
5,397,215 -
$ 7,304,555 614,143
62
I I) i AA1 I C cl)n 1 1-1
111,580 8,030,278
(This page intentionally left blank)
63
NON- MAJOR SPECIAL REVENUE FUNDS
The following Special Revenue Funds have been classified as non -major funds in the accompanying
financial statements:
State Gas Tax Fund - To account for state gasoline taxes received under Sections 2105, 2106, 2107
and 2107.5 of the Streets and Highways Code. State law requires that these revenues be utilized
solely for street related purposes.
Proposition A Transit Fund - To account for the receipt and expenditure of the City's share of the 1/2
cent sales tax levied in Los Angeles County for local transit purposes.
Proposition C Transit Fund - To account for the receipt and expenditure of Proposition C funds
from the Los Angeles County Metropolitan Transportation Authority for the City's transit and
transit -related improvement projects.
ISTEA Fund - The Intermodal Surface Transportation Enhancement Act (ISTEA) Fund accounts for
transport related receipts and expenditures.
Traffic Congestion Relief Fund - To account for revenues and expenditures for the City's street or
road maintenance or reconstruction pursuant to AB2928.
Integrated Waste Management Fund - To account for revenues and expenditures related to the
City's waste reduction efforts as related to AB939.
Air Quality Improvement Fund - To account for motor vehicle registration fees received from the
South Coast Air Quality Management District to reduce air pollution from motor vehicles pursuant
to the California Clean Air Act of 1988.
California Law Enforcement Equipment Program Fund (CLEEP) - To account for revenues received
from the California CLEEP fund and expenditures made for the purchase of high-technology
equipment.
Park and Facility Development,. Fund - To account for the development and enhancement of the
City's parks.
Community Development Block Grant Fund - To account for the City's allotment of CDBG funds
from the federal government via the County of Los Angeles Community Development Commission.
These funds are used to fund community development programs and projects benefiting low and
moderate income citizens.
Citizens Option for. Public Safety Fund (C - 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 District Fund - To account for revenues and expenditures related to the
special property tax assessments which were set up in accordance with the Landscape and Lighting
Act of 1972. The purpose of these districts is to improve the landscaping of City owned medians
and hillsides.
64
CITY OF DIAMOND BAR
Non -Major Special Revenue Funds
Combining Balance Sheet
June 30,_2003
Traffic Integrated
State Prop. A Prop. C Congestion Waste
Gas Tax Transit Transit ISTEA Relief Management
Assets
Cash and investments $ 229,784 1,422,175 1,202,106 - - 540,842
Accounts receivable - - - - - 39,718
Due from other governments 110,026 78,979 65,507 559,870 - -
Total assets $ 339,810 1,501,154 1,267,613 559,870 - 580,560
Liabilities and fund balances
Liabilities:
Accounts payable $ -
103,284
- -
- 31,092
Accrued payroll -
1,637
- -
- 567
Deferred revenue -
-
- 559,870
- -
Due to other funds -
-
- 559,870
- -
Total liabilities -
104,921
- 1,119,740
- 31,659
Fund balances:
Reserved for:
Encumbrances -
-
- -
- -
Unreserved 339,810
1,396,233
1,267,613 (559,870)
- 548,901
Total fund balances (deficit) 339,810
1,396,233
1,267,613 (559,870)
- 548,901
Total liabilities and
fund balances $ 339,810
1,501,154
1,267,613 559,870
- 580,560
65
Air
Park and
Community
Landscape
Quality
Facility
Development
Asset
Maintenance
Improvement
CL EEP
Development
dock Grant
COPS
Seizure
District
Total
177,558
84,626
2,457,779
-
196,487
308,582
1,187,075
7,807,014
-
_
-
-
-
39,718
17,374
-
-
75,238
-
-
10,620
917,614
194,932
84,626
2,457,779
75,238
196,487
308,582
1,197,695
8,764,346
16,660
-
-
11,287
872
-
43,421
206,616
34
-
-
66
-
-
3,213
5,517
-
_
-
64,039
-
-
-
623,909
_
-
63,879
-
-
-
623,749
16,694
-
-
139,271
872
-
46,634
1,459,791
38,125
-
-
-
-
-
1,895
40,020
140,113
84,626
2,457,779
(64,033)
195,615
308,582
1,149,166
7,264,535
178,238
84,626
2,457,779
(64,033)
195,615
308,582
1,151,061
7,304,555
194,932
84,626
2,457,779
75,238
196,487
308,582
1,197,695
8,764,346
66
CITY OF DIAMOND BAR
Non -Major Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2003
Traffic Integrated
State Prop. A Prop. C Congestion Waste
Gas Tax Transit Transit ISTEA Relief Management
Revenues:
Special assessments
$ -
-
- -
Intergovernmental
1,170,239
694,969
702,295 752,130
Charges for services
-
517,930
- -
Investment income
6,520
26,717
28,507 -
Other revenues
-
-
- -
Total revenues
1,176;759
1,239,616
730,802 752,130
Expenditures:
Public safety
-
-
- -
Highways and streets
-
1,006,768
- -
Public works
-
-
- -
Community development
-
-
- -
Total expenditures
-
1,006,768
- -
Excess (deficiency) of
revenues over (under)
expenditures
1,176,759
232,848
730,802 752,130
123,020 39,916
- 188,207
3,049 10,406
- 13
126,069 238,542
135,810
135,810
126,069 102,732
Other financing sources (uses):
Transfers in - - - -
Transfers out (1,040,361) - (592,416) - (268,668)
Total other financing
sources (uses) (1,040,361) - (592,416) - (268,668)
Net change in fund
balances 136,398 232,848
Fund balances (deficit) at
beginning of year,
138,386 752,130 (142,599) 102,732
as restated 203,412 1,163,385 1,129,227 (1,312,000) 142,599 446,169
Fund balances (deficit) at
end of year $ 339,810 1,396,233 1,267,613 (559,870) - 548,901
67
Air
Park and
Community
Landscape
Quality
Facility
Development
Asset Maintenance
Improvement CLEEP
Development
Block Grant COPS
Seizure District
68,679 24,624 - 1,168,890
4,695 2,055 42,038 -
73,374 26,679 42,038 1,168,890
Total
557,601 557,601
154,853 - - 4,899,615
- - - 706,137
6,666 6,604 23,298 160,555
- - - 13
161,519 6,604 580,899 6,323,921
60,215 - 94,158 48,407 - 202,780
- _ _ - - - 1,006,768
154,696 - - - - - 509,154 799,660
- - - 135,525 - - - 135,525
154,696 60,215 - 135,525 94,158 48,407 509,154 2,144,733
(81,322)
(33,536)
42,038
1,033,365
67,361
(41,803)
71,745
4,179,188
-
-
623,209
-
-
-
-
623,209
-
(786,811)
(155,029)
-
(51,772)
(2,895,057)
-
-
623,209
(786,811)
(155,029)
-
(51,772)
(2,271,848)
(81,322)
(33,536)
665,247
246,554
(87,668)
(41,803)
19,973
1,907,340
259,560
118,162
1,792,532
(310,587)
283,283
350,385
1,131,088
5,397,215
178,238
84,626
2,457,779
(64,033)
195,615
308,582
1,151,061
7,304,555
68
CITY OF DIAMOND BAR
State Gas Tax Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
__ Budget and Actual
Year ended June 30, 2003
Revenues:
Intergovernmental
Investment income
Total revenues
Excess of revenues over expenditures
Other financing sources (uses):
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ 1,031,800
1,170,239
138,439
10,000
6,520
(3,480)
(1,245,617)
1,041,800
1,176,759
134,959
Net change in fund balances
1,041,800
1,176,759
134,959
Transfers out
(1,245,617)
(1,040,361)
205,256
Total other financing sources (uses)
(1,245,617)
(1,040,361)
205,256
Net change in fund balances
(203,817)
136,398
340,215
Fund balances at beginning of year
203,412
203,412
-
Fund balances (deficit) at end of year $
(405)
339,810
340,215
69
CITY OF DIAMOND BAR
Proposition A Transit Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental $
750,400
694,969
(55,431)
Charges for services
550,000
517,930
(32,070)
Investment income
30,000
26,717
(3,283)
Total revenues
1,330,400
1,239,616
(90,784)
Expenditures:
Current:
Highways and streets
1,188,760
1,006,768
181,992
Total expenditures
1,188,760
1,006,768
181,992
Excess of revenues over expenditures
141,640
232,848
91,208
Net change in fund balances
141,640
232,848
91,208
Fund balances at beginning of year,
as restated
Fund balances at end of year
1,163,385 1,163,385 -
$ 1,305,025 1,396,233 91,208
70
CITY OF DIAMOND BAR
Proposition C Transit Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental
$ 622,350
702,295
79,945
Investment income
100,000
28,507
(71,493)
Total revenues
722,350
730,802
8,452
Excess of revenues over expenditures
722,350
730,802
8,452
Other financing sources (uses):
Transfers out
(1,368,857)
(592,416)
776,441
Total other financing sources (uses)
(1,368,857)
(592,416)
776,441
Net change in fund balances
(646,507)
138,386
784,893
Fund balances at beginning of year,
as restated
1,129,227
1,129,227
-
Fund balances at end of year
$ 482,720
1,267,613
784,893
71
CITY OF DIAMOND BAR
ISTEA Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental $ -
752,130
752,130
Total revenues -
752,130
752,130
Excess of revenues over expenditures -
752,130
752,130
Net change in fund balances -
752,130
752,130
Fund balances (deficit) at beginning of year (1,312,000)
(1,312,000)
-
Fund balances (deficit) at end of year $ (1,312,000)
(559,870)
752,130
72
CITY OF DIAMOND BAR
Trak Congestion Relief Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Year ended June 30, 2003
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental $
158,000
123,020
(34,980)
Investment income
10,000
3,049
(6,951)
Total revenues
168,000
126,069
(41,931)
Excess of revenues over expenditures
168,000
126,069
(41,931)
Other financing sources (uses):
Transfers out
(327,599)
(268,668)
58,931
Total other financing sources (uses)
(327,599)
(268,668)
58,931
Net change in fund balances
(159,599)
(142,599)
17,000
Fund balances at beginning of year
142,599
142,599
-
Fund balances (deficit) at end of year $
(17,000)
-
17,000
73
CITY OF DIAMOND BAR
Integrated Waste Management Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Intergovernmental
Charges for services
Investment income
Other revenues
Total revenues
Expenditures:
Public works
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ 61,000 39,916 (21,084)
200,000 188,207 (11,793)
16,000 10,406 (5,594)
- 13 13
277,000 238,542 (38,458)
319,330
135,810
183,520
319,330
13 5, 810
183,520
(42,330)
102,732
145,062
(42,330)
102,732
145,062
446,169
446,169
-
$ 403,839
548,901
145,062
74
CITY OF DIAMOND BAR
Air Quality Improvement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Intergovernmental
Investment income
Total revenues
Expenditures:
Public works
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ 65,000 68,679 3,679
88,000 73,374 (14,626)
207,995 154,696 53,299
207,995 154,696 53,299
(119,995)
(81,322) 38,673
(119,995)
(81,322) 38,673
259,560
259,560 -
$ 139,565
178,238 38,673
75
CITY OF DIAMOND BAR
CLEEP Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Intergovernmental
Investment income
Total revenues
Expenditures:
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(4,465)
(33,536) (29,071)
Variance
(33,536) (29,071)
118,162
with Final
$ 113,697
84,626 (29,071)
Budget
Final
Positive
Budget
Actual
(Negative)
$ 47,750
24,624
(23,126)
8,000
2,055
(5,945)
55,750
26,679
(29,071)
60,215
60,215
60,215
60,215
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(4,465)
(33,536) (29,071)
(4,465)
(33,536) (29,071)
118,162
118,162
$ 113,697
84,626 (29,071)
76
CITY OF DIAMOND BAR
Park and Facility Development Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Investment income
Total revenues
Excess of revenues over expenditures
Other financing sources:
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
77
Variance
with Final
Budget
Final
Positive
Budget
Actual
(Negative)
$ 50,000
42,038
(7,962)
50,000
42,038
(7,962)
50,000
42,038
(7,962)
-
623,209
623,209
-
623,209
623,209
50,000
665,247
615,247
1,792,532
1,792,532
-
$ 1,842,532
2,457,779
615,247
77
CITY OF DIAMOND BAR
Community Development Block Grant Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental $
1,165,770
1,168,890
3,120
Total revenues
1,165,770
1,168,890
3,120
Expenditures:
Community development
220,973
135,525
85,448
Total expenditures
220,973
135,525
85,448.
Excess of revenues over expenditures
944,797
1,033,365
88,568
Other financing sources (uses):
Transfers out
(944,797)
(786,811)
157,986
Total other financing sources (uses)
(944,797)
(786,811)
157,986
Net change in fund balances
246,554
246,554
Fund balances (deficit) at beginning of year
(310,587)
(310,587)
-
Fund balances (deficit) at end of year $
(310,587)
(64,033)
246,554
78
CITY OF DIAMOND BAR.
COPS Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Intergovernmental
Investment income
Total revenues
Expenditures:
Public safety
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at begimling of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ 159,500
154,853
(4,647)
12,000
6,666
(5,334)
31,081
171,500
161,519
(9,981)
107,794 94,158 13,636
107,794 94,158 13,636
63,706 67,361 3,655
(186,110)
(155,029)
31,081
(186,110)
(155,029)
31,081
(122,404)
(87,668)
34,736
283,283
283,283
-
$ 160,879
195,615
34,736
79
CITY OF DIAMOND BAR
Asset Seizure Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Investment income
Total revenues
Expenditures:
Public safety
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
15,000 6,604 (8,396)
50,000 48,407 1,593
50,000 48,407 1,593
(35,000)
(41,803) (6,803)
(35,000)
(41,803) (6,803)
350,385
350,385
$ 315,385
308,582 (6,803)
80
CITY OF DIAMOND BAR
Landscape Maintenance District Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Special assessments
Investment income
Total revenues
Expenditures:
Public works
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ 551,477
557,601
6,124
52,000
23,298
(28,702)
603,477
580,899
(22,578)
626,215 509,154 117,061
626,215 509,154 117,061
(22,738) 71,745 94,483
(652,410)
(51,772)
600,638
(652,410)
(51,772)
600,638
(675,148)
19,973
695,121
$ 455,940 1,151,061 695,121
81
NON -MAJOR DEBT SERVICE FUND
The Debt Service Fund is used primarily to account for the accumulation of resources for the
payment of principal and interest on general long-term debt of the City. The following has been
classified as a non -major fund in the accompanying financial statements.
Public Financing Authority Fund — To account for the payment of principal and interest on the
Lease Revenue Bonds.
82
CITY OF DIAMOND BAR
Public Financing Authority Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Variance
with Final
Budget
Final Positive
—Budget Actual (Negative)
Revenues:
Investment income
Total revenues
Expenditures:
General government
Debt service:
Interest charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources:
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances (deficit) at end of year
1,184 3,391 2,207
1,184 3,391 2,207
271 752 (481)
28,874 87,314 (58,440)
(27,690) (83,923) (56,233)
698,066 698,066
698,066 698,066
(27,690) 614,143 641,833
$ (27,690) 614,143 641,833
83
MAJOR AND NON -MAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds are established to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by Special Revenue
Funds).
Major Funds:
Public Financing Authority Capital Project Fund — To account for the financing of public
improvements and other capital purchases for the City.
Capital Improvement Fund — To account for the costs of constructing street improvements, park
improvements, and other public improvements not normally included within the other Capital
Projects funds. Financing is provided by developer fees and interf ind transfers from the Special
Revenue Funds and the General Fund.
Nonmajor 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.
84
CITY OF DIAMOND BAR
Public Financing Authority Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Investment income
Total revenues
Expenditures:
General government
Fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Bonds issued
Bonds discount and issuance costs
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
55,521 55,521
55,521 55,521
17
321
(304)
10,000
449,190
(439,190)
10,017
449,511
(439,494)
(10,017)
(393,990)
(383,973)
(11,503,667)
(6,871,849)
4,631,818
13,755,000
13,755,000
-
(769,300)
(769,300)
-
1,482,033
6,113,851
4,631,818
1,472,016 5,719,861 4,247,845
$ 1,472,016 5,719,861 4,247,845
85
CITY OF DIAMOND BAR
Capital Improvement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 2003
Revenues:
Intergovernmental
Licenses and permits
Total revenues
Expenditures:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources:
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances (deficit) at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ 240,000 240,000 -
- 570 570
240,000 240,570 570
18,314,265 8,057,482 10,256,783
18,314,265 8,057,482 10,256,783
(18,074,265) (7,816,912) 10,257,353
16,401,081
7,908,956
(8,492,125)
16,401,081
7,908,956
(8,492,125)
(1,673,184)
92,044
1,765,228
$ (1,496,911) 268,317 1,765,228
86
CITY OF DIAMOND BAR
Grand Avenue Construction Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
i
Year ended June 30, 2003
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Final Positive
Budget Actual (Negative)
$ (109,131)
(20,321)
88,810
(109,131)
(20,321)
88,810
(109,131)
(20,321)
88,810
$ 22,770 111,580 88,810
87
INTERNAL SERVICE FUNDS
Internal Service Funds have been established to finance and account for goods and services
provided by one City department to other City departments or agencies. Funds included are:
Self -Insurance Fund — To account for payments made for the City's general liability insurance
premium.
Equipment Replacement Fund — To account for the replacement of the City's rolling equipment
stock or vehicles.
Computer Replacement Fund — To account for the replacement and/or enhancement of the City's
computer-related equipment.
88
89
CITY OF DIAMOND BAR
Internal Service Funds
'
Combining Statement ofNet Assets
June 3CL2003
—
Self-
Equipment
Computer
I000razxcuTotal
Assets
Current assets:
Cash and inn/eotouco1a
$ I,3l0,011
191,440
2,356
1,511,007
Accounts receivable
91,718
-
-
91,718
Total current assets
1,409,729
l9l,44O
2,356
1,603,525
Property, plant and equipment:
Machinery and equipment
-
04,017
13,506
98,323
Less accumulated depreciation
-
Net property, plant and equipment -
48,394
6,5g@
52,992
Total assets
1,409,729
237,034
8,g54
1,656,517
Net assets
Invested in capital assets, net ofrelated debt -
46,394
6,598
52"992
Unrestricted
1,409,729
191440
2,358
1,603,525
Total net assets
$ l~409,729
=====
237,034
0,954
1,656,517
=====
89
CITY OF DIAMOND BAR
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Year ended June 30, 2003
Self- Equipment Computer
Insurance Replacement Replacement Total
Operating revenues:
Insurance deposits
$ 91,718
3,559
91,718
Total operating revenues
91,718
24,091
91,718
Operating expenses:
27,650
Income (loss) before transfers
(46,255)
Insurance premiums
162,064 -
-
162,064
Depreciation
- 14,530
4,502
19,032
Maintenance
- -
4,644
4,644
Total operating expenses
162,064 14,530
9,146
185,740
Operating income (loss)
(70,346) (14,530)
(9,146)
(94,022)
Non-operating revenues:
Investment income
24,091
3,559
27,650
Total non-operating revenues
24,091
3,559
27,650
Income (loss) before transfers
(46,255)
(10,971)
(9,146)
(66,372)
Transfers in
162,065
24,330
7,000
193,395
Net change in net assets
115,810
13,359
(2,146)
127,023
Total net assets at beginning of year
1,293,919
224,475
11,100
1,529,494
Total net assets at end of year
$ 1,409,729
237,834
8,954
1,656,517
90
CITY OF DIAMOND BAR
Internal Service Funds
Combining Statement of Cash Flows
Year ended June 30, 2003
Self- Equipment
Computer
( '
Insurance Replacement
Replacement
Total
Cash flows from operating activities:
Insurance deposits
$ 72,838 -
-
72,838
Insurance payments
(5,815) -
-
(5,815)
Cash paid for operating expenses
- -
(4,644)
(4,6441
Net cash provided by (used for)
operating activities
67,023 -
(4,644)
62.379
Cash flows from noncapital financing
activities:
Cash transferred from other funds
162,065 24,330
7,000
191395
Net cash provided by noncapital
f
financing activities
162,065 24330
7,000
193,395 !
Cash flows from capital and related activities:
Purchase of fixed assets
- (24,330)
-
(24,3301
!
Net cash provided by (used for)
!
capital and related activities
- (24,330)
-
(24,330)
Cash flows from investing activities:
Interest received from investments
24,091 3,559
-
27,650
Net cash provided by investing activities
24.091 3.559
-
27.650
Net increase in cash and cash
equivalents
253,179 3,559
2,356
259,094
Cash and cash equivalents at beginning of year
1,064,832 187.881
-
1.252,713
Cash and cash equivalents at end of year
$ 1,318,011 191,440
2,356
1,511,807 s
1'
Reconciliation of net operating income (loss)
to net cash provided by (used for)
operating activities:
c
Operating income (loss)
$ (70,346) (14,530)
(9,146)
(94,022)
Adjustments to reconcile operating
income (loss) to net cash provided by
(used for) operating activities:
Depreciation
- 14,530
4,502
19,032
(Increase) decrease in accounts receivable
(18,880) -
-
(18,880)
(Increase) decrease in prepaid insurance
156.249 -
-
156,249
Net cash provided by (used for)
o eratin activities
operating
g
$ 67,023 -
(4,644)
62,379
Noncash investing, capital and financing activities:
During the fiscal year ended June 30, 2003, there were
no noncash investing, capital or financing
activities.
91
STATISTICAL SECTION
92
N�
City of Diamond Bar
Government -wide Expenses by Function
For the Fiscal Year of 2002-03
(unaudited)
EXDenses by Function Total
General government
3,315,082
Public safety
4,988,449
Highways and streets
1,006,768
Public works
3,234,591
Community Development
135,525
Parks, recreation & culture
2,309,150
Interest and Fiscal Charges
535,752
$ 15,525,317
93
Government -Wide Expenses by Function
6,000,000
5,000,000
A
4,000,000
pyo
0 3,000,000
M2
M.—
2,000,000
MI
5M
g,
5 t
, q
1,0C10,000
i11�
p
NNOI
W'11�'V;2
g
0
General
Public safety
Highways and
Public works Community
Parks,
Interest and
government
streets
Development
recreation &
Fiscal Charges
culture
Fiscal Year 2002-03
93
pyo
Source: City Finance Department
This is the first year to show this information due to the implementation of GASB 34
City of Diamond Bar
Government -wide Revenues
For the Fiscal Year of 2002-03
(unaudited)
General revenues
Taxes
Investment income
Other
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
Total government -wide revenues:
Table 2
$ 10,837,951
658,922
74,818
$ 11,571,691
$ 2,872,909
4,390,722
1,779,510
$ 9,043,141
20,614,832
Source: City Finance Department
This is the first year to show this information due to the implementation of GASB 34
94
Total General Fund Expenditures
24,000,000
22,000,000
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000 MIN
4,000,000
2,000,000
0
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Fiscal Year
,fir
as w `
ya
S' uL
Table 3
r�"�ari
C i�"
�•`4�,t���k�,�
+�
F' .i
City of Diamond
Bar
-'
General Government Expenditures by Function
(1)
'��i`ii'
� T��
}z��
�':�
:t.;?t�,
Last Ten Fiscal
Years
ArfifSt°'
F i•..
T�iGre
(unaudited)
t"Y`y
Fiscal
General
Public
Public
Culture &
Capital
Debt
Year
Government*
Safety
Works
Recreation
Outlay*
Service
Total
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
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
f
2000-01
4,159,392
4,960,517
2,679,692
1,898,087
3,131,469
3,526,460
20,355,617 t)
2001-02
3,231,328
4,933,713
2,987,084
1,737,357
6,375,957
0
19,265,439
2002-03
3,299,041
4,973,248
3,679,856
1,946,025
8,057,482
535,752
22,491,404 i
Total General Fund Expenditures
24,000,000
22,000,000
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000 MIN
4,000,000
2,000,000
0
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Fiscal Year
(1) Includes General, Special Revenue, Capital Project and Debt Service Funds.
*Note: General Government includes Community Development Expenditures
Capital Outlay includes Cost of Property sold.
Source: City Finance Department
95
,fir
as w `
ya
S' uL
r�"�ari
C i�"
�•`4�,t���k�,�
+�
F' .i
c
'4x.
��,,y'•
A•
'��i`ii'
� T��
}z��
�':�
:t.;?t�,
�f `}i
'�-`�'�
Yli: ��'ir'y'e
�{
ArfifSt°'
F i•..
T�iGre
t"Y`y
}r«+1�.
(1) Includes General, Special Revenue, Capital Project and Debt Service Funds.
*Note: General Government includes Community Development Expenditures
Capital Outlay includes Cost of Property sold.
Source: City Finance Department
95
Table 4
City of Diamond Bar
General Government Revenues by Source (1)
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
Taxes*
Special
Assessments
Licenses
& Permits
Inter-
Governmental
Fines &
Forfeitures
Use of Money
& Property
Other**
Revenue
Total
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
1,395,785
59,443
19,945,707
2000-01
7,229,142
547,407
2,012,263
7,131,505
509,676
1,672,384
92,227
19,194,604
2001-02
7,665,970
546,662
1,786,971
6,534,225
529,921
964,038
92,094
18,119,881
2002-03
8,138,712
557,601
1,467,127
8,602,856
813,617
658,922
74,818
20,313,653
Total General Fund Revenues
24,000,000
22,000,000
20,000,000
18,000,000
,'�"#i*:
16,000,000
14,000,000
0 12,000,000
10,000,000
8,000,000
6,000,000 13-'U �,�
4,000,000
2,000,000 i
0
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Fiscal Year
(1) Includes General, Special Revenue and Capital Project Funds.
*Note: Taxes category includes Charges for Services.
**Note: Other Revenue includes proceeds from sale of property
Source: City Finance Department
k`�-�
S
�'�
i ��
n� � ��(�
'li¢t�
�„�ii`: ,^
\ ��{t: N��L�
4�''4+���
��
"y�•�
x� �.;,
.'�
k j �'
'�`y
ti� `�lt'�: �ii,•.7'.
t
3`.
ti ``s'r
(1) Includes General, Special Revenue and Capital Project Funds.
*Note: Taxes category includes Charges for Services.
**Note: Other Revenue includes proceeds from sale of property
Source: City Finance Department
Total Property Tax Collections
2,500,000
15
2,000,000
1,500,000 M
rog
10
am
02
M- NNE RAP
500,000 M,
610 M
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Fiscal Year
97
°Note:The City ofDiamond Bar settled aproperty tax lawsuit with Los Angeles County that
resulted |nadditional property tax payments totalling $1'882.78Q.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
atthe date ofincorporation.
Source: Los Angeles County Auditor/Controller.
_
(
(
-Uable_5
CityBar ���~�����>
�
��t�Av���
��
Property
-
Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
^
'
Fiscal
Total
Total Current Percentage of
DeRquent Tan |
Year
Current Levy
Collections Levy
Collected
Receivables
1893-94
1.180,435
818/N67
69.34%
361j968
|
1994-95
1.804.068
1,625i911
90.12%
�
178.157
1995-96
1.706.583
1.711.083
95.2996
84,610
1996-97
1.808.197
1.625'252
89.83%
183.845
1897-98
1.781.264
1'680'816
84.3696
100.448 (
1998-99
1.810'268
1.758'764
97.16%
51'502
1990-00
1.904.915
1.813.904
95.22%
81'011
2000-01
1'954.530
1.847.817
84.5496
106'713 (
2001-02
2.129.310
-4�05-,f%38' 1,o`7/ --A4
-70-.74%-
14, -62-3-,67-4- hl,ca\
2002-03
2.301.716
2'288.733
99.4896
11.983 |
Total Property Tax Collections
2,500,000
15
2,000,000
1,500,000 M
rog
10
am
02
M- NNE RAP
500,000 M,
610 M
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Fiscal Year
97
°Note:The City ofDiamond Bar settled aproperty tax lawsuit with Los Angeles County that
resulted |nadditional property tax payments totalling $1'882.78Q.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
atthe date ofincorporation.
Source: Los Angeles County Auditor/Controller.
°Note:The City ofDiamond Bar settled aproperty tax lawsuit with Los Angeles County that
resulted |nadditional property tax payments totalling $1'882.78Q.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
atthe date ofincorporation.
Source: Los Angeles County Auditor/Controller.
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Last Ten Fiscal Years
(unaudited)
- Fiscal
Secured
Unsecured
Public
'}�
Percentage
Year
Gross Value
Gross Value
Utility
Exemptions
Total
Increase
Y��.i.l{F�4!
1993-94
3,536,453;242
49,709,273
844,313
25,119,688
3,561,887,140
33.72%
1994-95
3,619,436,021
57,158,841
820,862
33,523,553
3,643,892,171
2.30%
1995-96
3,659,337,876
60,689,091
825,138
35,979,540
3,684,872,565
1.12%
1996-97
3,660,223,979
64,187,086
828,963
27,479,616
3,697,760,412
0.35%
1997-98
3,645,994,575
67,863,390
884,347
37,731,129
3,677,011,183
-0.56%
1998-99
3,730,370,102
74,441,058
876,688
38,373,706
3,767,314,142
2.46%
1999-00
3,873,275,798
63,844,054
125,921
36,494,583
3,900,751,190
3.54%
2000-01
4,098,200,125
67,438,047
116,405
40,088,648
4,125,665,929
5.77%
2001-02
4,327,911,837
71,622,089
127,441
41,869,703
4,357,791,664
5.63%
2002-03
4,662,799,726
70,071,065
122,697
44,188,829
4,688,804,659
7.60%
Net Assessed Value
5,000,000,000
4,500,000,000
4,000,000,000
3,500,000,000
3,000,000,000
•° 2,500,000,000gi
2,000,000,000
1,500,000,000
1,000,000,000
500,000,000
0
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03
Fiscal Year
Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone
M"
t ,t
��'S
�3 MM
'}�
T'hl
Y��.i.l{F�4!
City of Diamond Bar
Property Tax Rates -All Direct and OverlappingGovernments
�
x��*�� ��
- _^^p~~~ ~~ ~^_���~^_~~ ~`~^^~.~~^~~^v
Last Ten Fiscal Years
^____-_^
Fiscal
Year
General
Levy
Los Angeles
County
Walnut Valley
School District
Walnut Valley
Water District
LACuunty
Flood Control
LACounty
Sanitation
Metropolitan
Water District
Totall
1993-94
1.0000000
0.0017130
0.0863570
0.0448070
0.0042120
0.0000000
0.0089000
1.1459890
1804-95
1.0000080
0.0019030
0.0649030
0.0080000
0.0060410
0.0000000
0.0089000
1.0818370
1995-96
1.0000080
0.0018140
0.0089866
0.0000000
0.0009630
0.0000000
0.0089008
1.0206636 )
1096-97
1.0000000
0.0016040
0.0850380
0.0000000
0.0019910
0.8000000
0.0089000
1.0975330
1997-98
1.0000000
0.0015840
0.1025300
0.0000000
0.0021970
0.0000000
0.0080000
1.1152118
1998-99
10OOU000
'
U.UO14510
O.OGQ4G1O
O.UOVDUU0
U.OU1Q53O
U.UOOOUUO
O.0O8QU8O
1.O817O5O |
/
1999-00
1.0008000
0l014220
0.0784890
`0.0000000
0.0017650
0.0000000
8.0889000
1.0905760 `
2000-01
1.0000000
0.0013140
0.0884030
0.0000000
0.0015520
0.0000000
0.0088000
1.1000690
2001-02
1.0000000
0.0011280
0.0916300
0.0000000
0.0004730
0.0000000
0.0077000
1.1009310
2002-03
1.0000000
0.0010330
0.1008580
0.0000000
0.0008810
0.0000000
0.0067000
1.1094720 |
Note: Property tax rates based unotypical tax rate area.
Source: Los Angeles County Auditor/Controller, Hdl Coren&Cone
Me
Typical Property Tax Rates
(Percent of Assessed Value)
2.0000000
1.7500000
1.5000000
1.2500000
1.0000000
0.7500000
0.500
0.250000
0.0000000
1993-94
1994-95
1995-96
1996-97 1997-98 1998-99
1999-00
2000-01
2001-02 2002-03
Fiscal Year
Note: Property tax rates based unotypical tax rate area.
Source: Los Angeles County Auditor/Controller, Hdl Coren&Cone
Me
City of Diamond Bar
Computation ofLegal Debt Margin
June 30'2003
(unaudited)
/
Assessed Valuations:
Assessed Value
Add Back:
Total Assessed Value
Legal Debt Margin:
$ 4,644.615,830
44,188,829
w *688804659
Debt Umitotiono-1596ofTotal Assessed Value* $ 703,320,6K99
Debt Applicable to Limit'
Total Bonded Debt O
Less: Special Assessment Bonds U
Revenue Bonds 13.755.000 '
Available for Repayment ofGeneral Obligation Bonds O
Total Debt Applicable boLimitation ' . O
Legal Debt Margin $ 689,565,699
*Section 43G05ofthe California Government Cod
Source: City Finance Department, Hd|Coren&Cone
City of Diamond Bar
Computation of Direct and Overlapping Debt
June 30"2003
(unaudited)
2OO2/D3Assessed Valuation: $4'888,7O8/479
Debt toAssessed Valuation Ratios: Direct Debt 0.0096
Overlapping Debt 1.9496
Total Debt 1.9496
Report reflects general obligation debt which is being repaid through .
It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded
capital lease obligations and certificates of participation.
This fund is a portion ofelarger agency, and is responsible for debt in areas outside the city.
Source: City Finance Department, HdI Coren&Cone
101
Gross Bonded
% Applicable
Net Bonded
Government
Debt Balance
To Ci
Debt
Los Angeles County Detention Facilities 1B87Debt Svc
$30,225000
0J89
$241,422
LACoFlood Control (Storm Drain Bond No4\DG
10.110.000
0.730
73.810
Flood Control Ref. Bonds 1SS3Debt Service
845.000
0.730
6,169
*Metropolitan Water District Three Valley Area 1112
475.265.000
0.824
3.917'211
MtSan Antonio Comm Col Dio2OO1Ser AD8
34'805'000
13.670
4'757'671
Pomona Unified School District 2OO2Ser AOG
10,000.000
27.810
2.781.043
Pomona Unified School District 2OO2Ser BDG
15.000.000
27.810
4'171.564
Pomona Unified School District Refund Ser 1SB7ADG
48.375'000
27^810
12'897.885
Pomona Unified 8ORefund 2OOO8eheo`A Oe[tGomiu
20'340.000
27.810
5.656'840
Pomona Unified 8[]1S9DSeries D Debt Service
9'875.000
27.810
2'746.278
Pomona Unified 8DRefunding 2OU1Ser & Debt 8en/io'
22'340'000
27.810
6'212'849
Walnut Valley Unified 8D2OOOSeries CD8
8.000.000
76.029
8'082.328
Walnut Valley Unified SDRefund Series 1QQ7AO8
40.777.718
76.028
31'002.933
Walnut Valley Unified 8D20OOSeries ADS
6.765.000
76.020
5.143,360
Walnut Valley Unified 8D2ODOSeries BDS
6,865.000
76.029
5,219,398
Total Gross Direct and Overlapping Bonded Debt
2OO2/D3Assessed Valuation: $4'888,7O8/479
Debt toAssessed Valuation Ratios: Direct Debt 0.0096
Overlapping Debt 1.9496
Total Debt 1.9496
Report reflects general obligation debt which is being repaid through .
It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded
capital lease obligations and certificates of participation.
This fund is a portion ofelarger agency, and is responsible for debt in areas outside the city.
Source: City Finance Department, HdI Coren&Cone
101
Table 10
City of Diamond Bar
Residential and Commercial Construction and Bank Deposits
Last Ten Fiscal Years
(unaudited)
New Construction
Fiscal
Year
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
Fiscal
Year
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
6/30/1993
6/30/1994
6/30/1995
6/30/1996
6/30/1997
6/30/1998
6/30/1999
6/30/2000
6/30/2001
6/30/2002
Residential
Units
Value
10
6,053,000
8
4,619,400
26
16,715,000
15
9,516,000
66
32,539,000
88
36,303,000
28
18,274,000
92
42,558,001
73
37,849,631
16
12,370,771
L;ommerciai
Units
Value
0
0
0
0
0
0
1
4,300,000
0
0
5
21,516,000
2
1,706,000
3
8,431,000
1
6,621,000
1
1,733,000
Alterations and Additions
Residential
Units
Value
570
5,781,300
487
5,649,500
651
7,285,100
595
12,150,400
639
8,618,400
751
19,163,240
632
8,255,650
716
10,069,605
784
8,227,250
847
13,388,981
yommerciai
Units
Value
95
4,839,400
81
2,454,800
52
2,460,200
58
3,826,800
52
2,453,000
53
10,099,900
99
8,324,100
57
4,614,427
54
9,737,510
59
3,022,200
Bank Deposits
371,506,000
379,581,000
423,640,000
480,610,000
472,071,000
532,147,000
533,242,000
607,018,000
716,167,000
869,131,000
(1) Includes multiple dwellings
Source: City's Contract Building & Safety Provider, Findley Reports
102
City of Diamond Bar
Principal PropertyKs
June 30, 2003
192891589 4.082Y6
103
2002-0
of Total
Taxpayer
Primary Use
Assessed Valuation
Net Assessed Valuation
Opus Real Estate California
Commercial
$29.026.887
0.611Y6
Gem Gateway Limited Inc.
Commercial
22.961'205
0.484%
1U22South Grand Avenue Apartment
Residential
22'204,350
0.46896
Hidden Manna Corporation
Commercial
21.363,634
0.45096
K8&H Realty Partners ||
Commercial
20'704.210
0.430Y6
Bridge Gate Partners [p
Commercial
17'255/K88
0.36396
Muller Gateway LLC
Commercial
16.767'084
0.353Y6
Martin 8rattrud Properties
Commercial
15'912.261
0.33596
H R8arnoo Family LP
Commercial
14.220.178
0.289Y6
Ghao Homes Limited Partnership
Industrial
12'476.192
0.263Y6
192891589 4.082Y6
103
Type ofCoverage
Liability:
General Liability, Automobile L��ty,.
Bodily Injury, Property Damage,
Personal Injury.
City of ~~.�� ,~. ~�. ~~ �~~
Schedule of Insurance
June 30° 2003
(unaudited)
*50,000,000 limit each occurrence,
$50,000,000 annual aggregate.
Retained loss uf$3O.O0Oper
occurrence.
Special Liability:
07//02-Un0
Errors and ommimsiono.Employment
$5O'UOU,0OOlimit each occurrence,
Practices injury, Contractual Liability
$5U.OUO.0DOannual aggregate.
injury, Broadcast/Publication injury
Retained loss of$5U.00Oper
Employee Benafibo.Administration
occurrence.
injury, Discrimination injury.
Pollution & Remediation Legal Liability:
Scheduled property, streets, storm
CJPK\Limit $50' for 3years.
drains, approved underground tanks Q
$1U.UOO.UOOper member. Self inoup
nun'owneddiopooa}ukeo.
edretention $5O.0OOper occurrence.
Property:
/U|-Riok'including buildings, contents, $1OO,0OO,0OOper ocounonce.
garaged vehicles, contractor's equip- deductible of*5.00Oper occurrence.
mmrt'fine arts, rental income and other
miscellaneous extendonoofcoverage.
Automobile:
Automobile Physical Damage
Crime
Public Employee Blanket
Fidelity Bond -
Faithful Performance Bond
Covanage'{I
Depositors Forgery
Cnvemge?y
Crime- Money &Securities
Computer Fraud
Covomga1F'
Worker's
Work related injury/illness claims for
temporary and permanent disability.
Special Events:
Tenants/Users for Property
damage/bodilyknjury
$1O0,0D'00per occurence,
deductible of$1,0OOper occurrence
$1,0OD,00Olimit, deductible of
$2,5OOper occurrence
$1,000,000 limit, deductible of
$2.5OOper occurrence
$1'OOO'DOOlimit, deductible of
$2.5OOper occurrence
$1.00O'OOOlimit, deductible nf
$2.5OOper occurrence
Insurer Policy period
Self Insured Program/ 07/l02 -Until
California Joint Powers suspended or
Insurance Authority. terminated.
Self Insured Program/
07//02-Un0
California Joint Powers
suspended or
Insurance Authority.
terminated.
Self Insured Program/
070102-07@104
California Joint Powers
Insurance Authority.
Robert F. Driver Assoc. 12/31/01-12/31/03
Robert F. Driver Assoc. 12/31/01-12/31103
Robert F.Driver Assoc. 0101/0-040104
Robert FDriver Assoc. 0101/02-040104
Robert F.Driver Assoc. 01/0102'04/0104
Robert F.Driver Assoc. 0101/02'0401/04
$50,000 Self Insured Program/ 1001K01400103
employers liability inddefending costs. California Joint Powers
Insurance Authority.
-
$1,0OO,0OUper occurrence and Robert F.Driver Assoc. 04/0102-04h04
aggregate per event. $5,000 medical
expense limit.
Source: City Finance Department Prepared byGina Thawuni12/3/2UO3 Page
��������~ Diamond Bar
=."� .~" =U������==="
Demographic and Miscellaneous Statistical Information
June 30, 2003
(unaudited)
�~ted)
Date of Incorporation ---------------------------.Aoril 18.1988
Form ofGovernment ---------------...—.---.-----.Cnu
Area ....................................................—.--------.14'S Square miles
----------------------.—..---. 48
----------------------_----. 58
Fire Protection
(Los Angeles County Consolidated Fire protection District)
Number ofStations -------------------------.'—. 3
Sewers:
Sanitary Sewers ---------------------------. 146.88
Storm Sewers ---------------------------. 31]95
Recreation &Culture:
Community Centers ---------------------------. 1
Parks ----------..----------------. 11
Park ---------------------------. 62J
Park ---------------------------. 438
Education:
BomontaryGchoolo
Middle Schools
High Schools
Population ofpast ten yaara:°
Date
1994
1995
1996
1887
1998
1999
2000
2001
2002
2003
----.--..----.—,------------'—.. 8
............................................... 3
...'...'.................................._.............''...'................... 2
Population
Percentage Increase
54,507
0.35%
54,284
-0,41Y6
56.003
3.17%
56.658
1.1796
57.271
1.0896
58'300
1.80q6
59.100
1.3796
56.287
-4.7696
58.100
3.2296
57.468
-1.0996
Note: 20O2and 2UO3 populationnumbers are estimates.
°Gource:State ofCalifornia, Department of Finance
105
City of =""� .~~ ~_. � ~-_
Schedule of Credits
Year Ended June 30, 2003
Name
Linda C. Lowry, City Manager
David A.Doyle, Deputy City Manager
Linda G.Magnuson, Finance Director
Conrad and Associates, C.P��.Ll-P.
April Blakey, Public Information Manager
Source: City ofDiamond Bar
Area ofContribution
General Overview
Letter ofTransmittal
Management Discussion &Analysis
General Overview
Letter ofTransmittal
Management Discussion &Analysis
General Overview
Letter ofTransmittal
Management Discussion &Analysis
Statistical Tables
Financial Statements
Cover and Divider Page Design
(This page intentionally left blank.)