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CITY OF DIAMOND BAR, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2006
Prepared by:
FINANCE DEPARTMENT
Linda G Magnuson
Director of Finance
CITY OF DIAMOND BAR
TABLE OF CONTENTS
June 30, 2006
FINANCIAL SECTION:
Independent Auditors' Report
Page
Management's Discussion and Analysis (Required Supplementary Information)
Number
INTRODUCTORY SECTION:
Letter of Transmittal
i - vi
CSMFO Certificate of Award for Outstanding Financial Reporting
vii
GFOA Certificate of Achievementfor Excellence in Financial Reporting
viii
Organization Chart
ix
List of Principal Officials
x
FINANCIAL SECTION:
Independent Auditors' Report
172
Management's Discussion and Analysis (Required Supplementary Information)
.3-11
Basic Financial Statements:
Government -wide Financial Statements:
21
Statement of Net Assets
15
Statement of Activities
16
Fund Financial Statements:
Governmental Funds:
17
Balance Sheet
18-19
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
21
Statement of Revenues, Expenditures and Changes in Fund Balances
22-23
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of Activities
24
Proprietary Funds:
Statement of Net Assets
25
Statement of Revenues, Expenses and Changes in Fund Net Assets
26
Statement of Cash Flows
27
Notes to Basic Financial Statements 28 - 50
CITY OF DIAMOND BAR
TABLE OF CONTENTS
(CONTINUED)
June 30, 2006
FINANCIAL SECTION (CONTINUED):
Required Supplementary Information:
Page
Number
Budgetary Comparison Schedules: 53
General Fund 54
Proposition A Transit. Special Revenue Fund 55
Note to Required Supplementary Information 56
Supplementary Information:
Other Governmental Funds:
Combining Balance Sheet 58
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 59
Other Special Revenue Funds:
60-61
Combining Balance Sheet
62-63
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
64-65
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
State Gas Tax Fund
66
Proposition C Transit Fund
67
Intermodal Surface Transportation Enhancement
Act (ISTEA) Special Revenue Fund
68
Integrated Waste Management Fund
69
Traffic Congestion Relief
70
Air Quality Improvement Fund
71
California Law Enforcement Equipment Program (CLEEP) Fund
72
Park and Facility Development Fund
73
Community Development Block Grant (CDBG) Fund
74
Citizens Option for Public Safety (COPS) Fund
75
Asset Seizure Fund
76
Landscape Maintenance District Fund
77
Other Debt Service Fund: 79
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Public Financing Authority Fund 80
0
crry OF DIAMOND BAR
TABLE OF CONTENTS
(CONTINUED)
June 30, 2006
FINANCIAL SECTION (CONTINUED):
Page
Number
Supplementary Information (Continued):
Other and Major Capital Projects Funds: 81
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
82
Public Financing Authority Fund 83
Capital Improvement Fund
Internal Service Funds: 85
Combining Statement of Net Assets 86
Combining Statement of Revenues, Expenses and 87
Changes in Fund Net Assets
C 88
Combining Statement of Cash Flows
STATISTICAL SECTION:
Description of Statistical Section Contents 89
Financial Trends: 90
Net Assets by Component - Last Four Fiscal Years 91
Changes in Net Assets - Last Four Fiscal Years
Fund Balances of Governmental Funds - Last Four Fiscal Years 92
Changes in Fund Balances of Governmental Funds - Last Four Fiscal Years 93
Revenue Capacity: e of Taxable Property -Last Ten Fiscal Years 94
Assessed and Estimated Actual Valu 95
Direct and Overlapping Property Tax Rates - Current Fiscal Year 96
Top 10 Property TaxpayersI Ye . ars 97
Property Tax Levies and Collections - Last Ten Fiscal
Debt Capacity: 98
Direct and Overlapping Debt 99
Legal Debt Margin Information - Last Ten Fiscal Years
Demographic and Economic Information: 100
Demographic and Economic Statistics - Last Ten Calendar Years 101
Principal Employers
CITY OF DIAMOND BAR
TABLE OF CONTENTS
(CONTINUED)
June 30, 2006
Page
Number
STATISTICAL SECTION (CONTINUED):
Operating Information:
Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years 102
Operating Indicators by Function - Last Ten Fiscal Years 103
Steve Tye
Mayor
Jack Tanaka
Mayor Pro Tem
Wen P. Chang
Council Member
Carol Herrera
Council Member
Bob Zirbes
Council Member
Recycled paper
January 15, 2007
111i ij111!1111111111M
21825 Copley Drive - Diamond Bar, CA 91765-4178
(909) 839-7000 - Fax (909) 861-3117
www.CityofDiamondBar.com
Honorable Mayor and Members of the City Council
City of Diamond Bar
Diamond Bar, California
It is a pleasure to submit the Comprehensive Annual Financial Report of
the City of Diamond Bar for the fiscal year ended June 30, 2006. This
report consists of management's representations concerning the finances
of the City. Consequently, responsibility for both the accuracy of the
presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the City's management. To provide a
reasonable basis for making these representations, management of the
City has established a comprehensive internal control framework that is
designed both to protect the City's assets from loss, theft, or misuse and
to compile sufficient reliable information for the preparation of the City's
financial statements in conformance with GAAP. Because the cost of
internal controls should not outweigh their benefits, the City's
comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial
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 Diehl, Evans and
Company L.L.P., a firm of certified public accountants. The goal of the
independent audit was to provide reasonable assurance that the financial
statements of the City for fiscal year ended June 30, 2006, are
free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent
auditor concluded based upon the audit that there was a reasonable basis
for rendering an unqualified opinion that the City's financial statements
for the fiscal year ended June 30, 2006, were fairly presented in
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conformity with GAAP. The independent auditor's report is presented as the first
component of the financial section of this report.
The independent audit of the financial statements of the City of Diamond Bar was part of a
broader, federally mandated "Single Audit" designed to meet the special needs of federal
grantor agencies. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the financial statements,
but also on the audited City's internal controls and legal requirements involving the
administration of federal awards. These reports are available in the City's separately issued
Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis
to accompany the basic financial statements in the form of Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and
should be read in conjunction with it. The City's MD&A can be found immediately
following the report of the independent auditors.
PROFILE OF THE CITY OF DIAMOND BAR.
The City, incorporated in 1989, is located at the junction of the 57 and 60 freeways. As
a result, the City of Diamond Bar is at the hub of the Los Angeles basin transportation
network. A twenty-five mile radius encompasses Pasadena, downtown Los Angeles,
Long Beach, Irvine and Riverside. Diamond Bar is a relatively young residential
community of about 59,200, situated among the meandering hills and valleys of Brea
Canyon. Many desired services can be found in Diamond Bar's shopping and business
centers. Recreational opportunities within the City include more than 70 acres of
developed park facilities, hiking trails, a new community center, an 18 -hole public golf
course and 370 acres of undeveloped publicly owned open space.
The City has operated under the council-manager form of government since
incorporation. Policy making and legislative authority are vested in a five member City
Council. The City Council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and task forces, and hiring both the City
Manager and City Attorney. The City Manager is responsible for overseeing the day -to
day operations of the City, and for appointing the heads of the various departments. The
Council is elected on a non-partisan basis. Council members serve four-year staggered
terms, with elections held every other year. Each December, the City Council selects a
mayor and mayor pro tem from its membership.
The City of Diamond Bar is a contract city and as such contracts for many of its
services. This includes police services, building and safety services, engineering, road
maintenance and landscape maintenance.
The Los Angeles County Fire District provides fire protection, which is independent of
the City. Funds are collected through property tax bills and are disbursed directly to the
Los Angeles County Fire District by the Los Angeles County Tax Collector's Office.
Water services for the City are provided by the Walnut Valley Water District. Refuse
collection is provided by private waste collection companies. Additionally, schools are
provided by both the Walnut Valley Unified School District and the Pomona Unified
School District. Accordingly, none of these activities are included in this report.
ECONOMIC CONDITION AND OUTLOOK
During the last few years, the City of Diamond Bar's economy has seen a slight
improvement. This fiscal year was no exception as illustrated by higher sales tax
revenues and property tax revenues. To spite this growth, the erosion of the City's sales
tax base is a major concern to the City. The City has, however, built General Fund
reserves to fill in any gaps created by the economy or changes in State funding. A
careful analysis of the FY 06-07 budget will be done mid -year to adjust anticipated
revenues as well as appropriations.
The City continues to market opportunities for business expansion and business
attraction. As a result of these efforts, the City is starting to realize some of the fruit of
its labor. In October 2006 the City will have the first opening of a major retail store
since incorporation. This Target store is the anchor store for a small shopping center
which will eventually include restaurants and other services. This project located at the
intersection of Grand Avenue and Golden Springs Drive also includes a residential
component consisting of town homes and single family homes, This location is
considered one of the prime retail locations in the City. In addition, the Country Hills
Town Center is being redesigned and rebuilt to include a new grocery store.
In FY06-07, the City will continue to explore opportunities to expand its sales tax and
property tax base with new development opportunities in its commercial areas and the
possible annexation of land located within the City's sphere of influence. Development
opportunities in the City's commercial areas include the Walnut Valley Trailer Park site;
L.A. County Golf Course site; site "D"; and the K -Mart Property. The annexation plans
will provide an alternative site for a golf course thus malting it possible to commercially
develop the current golf course site.
The City's future economic health is being secured by building healthy reserves through
fiscally conservative budgets and policies in addition to aggressively pursuing economic
development opportunities.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Diamond Bar for its comprehensive annual financial report.for the fiscal year ended
June 30, 2005. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
financial reports. .
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report, with
contents that conform to program standards. The CAFR must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of
Diamond Bar has received the Certificate of Achievement for the last eleven
consecutive years (fiscal years ended 1995 through 2005 ). 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 eleven 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, and solid waste contract management),
community services (which includes senior services, park maintenance, recreation
services, community center operation, and landscape maintenance), community
relations, subsidized transit ticket sales, grant administration, financial management,
and administrative management. All of these activities are included in this report.
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Cash Management
The City invests temporarily idle funds in accordance with the Government Code and
the investment policy approved annually by the City Council. During FY05-06, 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 diversified
its investment portfolio by also investing in U.S. Government Sponsored Enterprise
Securities and Money Market Mutual Fund accounts that are in accordance with the
City's investment policy. The City manages all of its cash and investments on a pooled
basis. Interest earnings are allocated to the various funds based on their share of cash
and investment balances.
Risk Management
The City of Diamond Bar is a member of the California Joint Powers Insurance
Authority (CJPIA.) for the purpose of pooling its general liability losses and claims with
the other member agencies. The City is charged for the first $30,000 of each claim.
Claims above $30,000 are shared by all the member agencies up to a maximum of
$50,000,000 per occurrence.
The City belongs to 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 level. Costs between $100,001 and $2,000,000 are pooled based on payroll.
Costs between $2,000,000 and $5,000,000 are paid by excess insurance purchased by
the CJPIA.. Costs in excess of $5,000,000 are pooled based on payroll.
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 coverage 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
l 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 1.998-99. The self-insurance reserve at June 30, 2006 was
$1,210,475.
MIC
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 fall
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,
2004, 2005, and 2006 the total contribution to PERS was 12.70%, 15.06% and 11.148%
respectively, of the annual covered payroll. The City's total contribution to the system
was $496,247 for FY2005-06. The total contribution paid by the City included
employer contributions as well as member contributions for which the City is
contractually obligated to pay on behalf of its employees.
Acknowledgements
The preparation of this Comprehensive Annual Financial Report on a timely basis was
made possible by the dedicated service of the City's Finance Department staff, and
through the cooperation of the entire City staff. Each staff member has my sincere
appreciation for the contributions made in the preparation of this Report.
I would also like to thank our independent auditor, Diehl, Evans and Company 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,
,,,iL,.y iv.Lauar:,�j.
_v1_
— VIZ —
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Diamond Bar
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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'01,11 "1 11 ff,011"'111 III
ELECTED AND ADMINISTRATIVE OFFICIALS
Mayor
Carol Herrera
Mayor Pro Tem
Robert Zirbes
Councilmember
Jack Tanaka
Councilmember
Wen Chang
Councilmember
Steve Tye
City Manager Linda C. Lowry
Assistant City Manager David Doyle
City Clerk Tommye Cribbins
Doyle
Director of:
Community Services Bob Rose
Community Development Nancy Fong.
Finance Linda G. Magnuson
Public Works David G. Liu
Information Systems Ken Desforges
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS Int CONSULTANTS
MICHAEL R. LUDIN. CPA
CRMO
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 1
NITIN P.. SPEAKER. CPA
I'ATEL. CPA
ROBERT J. CALLANAN. CPA
'PHILIP H. HOLTKAMP. CPA
2121 ALTON PARKWAY, SUITE 100 *THOMAS M. PERLOWSKI. CPA
IRVINE, CALIFORNIA 92606-4956 *HARVEY J. SCHROEDER. CPA
(949) 399-0600 • FAX (949) 399-0610 KENNETH R. AMES. CPA
www.diehlevans.com -A PROPMMIONAL CORPORATION
October 19, 2006
I
INDEPENDENT AUDITORS' REPORT
LI
The Honorable Mayor and City
Council of the City of Diamond Bar
Diamond Bar, California
(!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, 2006, which collectively comprise the City's basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the City of Diamond
Bar's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free 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, 2006, and the
1 respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
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OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY. SUITE 330
CARLSBAD. CALIFORNIA 92008-2389 ESCONDIDO. CALIFORNIA 92025-2595
Il (760) 729-2343 • FAX (760) 729.2231 (760) 741-3141 • FAX (760) 741-9890
In accordance with Government Auditing Standards, we have also issued our report dated
November 9, 2006 on our consideration of the City of Diamond Bar's internal control over financial
reporting and our tests of its compliance with certain provisions of la w's, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
The management's discussion and analysis and the other required supplementary information
identified in the accompanying table of contents are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally accepted in
the United States of America. We have applied certain limited* procedures to the management's
discussion and analysis, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of this required supplementary information. However, we did not
audit the management's discussion and analysis and express no opinion on it. The budgetary
comparison schedules and related note 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
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Diamond Bar's basic financial statements.. The introductory. section,
other supplementary information and statistical section as listed in the table of contents are presented
for purposes of additional analysis and are not a required part of the basic financial statements. The
other supplementary information has been subjected to the auditing procedures applied in the audit of
the basic financial statementsand, in our opinion is fairly stated in all material respects in relation to
the basic financial statements taken as a whole. The introductory section and statistical section 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.
CITY OF DIAMOND BAR
Management's Discussion and Analysis
June 30, 2006
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, 2006. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal.
Financial Highlights
• The total revenues from all sources equaled $24,8131660.
• The total cost of all City .programs equaled $21,781,805.
• The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by
$48,919,090 (net assets). Of this amount, $29,461,178 (unrestricted net assets) may be used to
meet the City's ongoing obligations to citizens and creditors.
• As of the close of the current fiscal year, the City of Diamond Bar's governmental funds
reported combined ending fund balances of $31,849,025, a decrease of $584,921 in comparison
with the prior year. .$28,264,024 of that amount is available for spending at the City's
discretion. (unreserved, undesignated fund balance)
(i • At the end of the current fiscal year, unreserved fund balance for the general fund was
$25,103,444, or over one and a half the amount of general fund expenditures.
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
basic 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.
See independent auditors' report.
-3-
14 WZovy: 1/ ♦�►t1
Management's Discussion and Analysis
. (Continued)
June 30, 2006
Overview of the Financial Statements (Continued)
Government -wide financial statements (Continued)
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 cashflows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City of Diamond Bar
that are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user fees
and charges (business -type activities). The governmental activities of the City of Diamond Bar include
general government, public safety, highways and streets, community development, and parks and
recreation. The City of Diamond Bar currently has no business -type activities.
The government -wide financial statements include not only the City. of Diamond Bar itself, but also a
legally separate financing authority. Although legally separate, the Diamond Bar Financing Authority
is included because the City is financially accountable for it.
Fund financial statements — A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City. of Diamond
Bar, like other state and local governments, uses fund accounting to. ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the City can be divided into
two categories: governmental funds, and proprietary funds.
Governmental Funds — Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, available at the end of the fiscal year. This information
helps to determine whether there are more or fewer financial resources. that can be spent in the near
future to finance the City's programs.
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.
See independent auditors' report.
M
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2006
Overview of the Financial Statements (Continued)
Fund financial statements (Continued)
Governmental Funds (Continued) — The City of Diamond Bar adopts an annual appropriated budget
for its general fund. A budgetary comparison statement has been p . rovided for the general fund to
demonstrate compliance with this budget.
Proprietary Funds — The type of proprietary funds that the City maintains are internal service funds
that are used to allocate costs internally among the various functions of the City. The City of Diamond
C)
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 Basic 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 $48,919,090 at the close of 2006
(see Table 1).
Included in the net assets of the City of Diamond Bar is its investment in capital assets (e.g., land,
buildings, machinery, construction in progress . and equipment), less the related outstanding debt used
to acquire those assets. The City of Diamond Bar uses these capital assets to provide services to its
citizens; consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this .debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
See independent auditors' report.
-5-
Management's Discussion and Analysis
(Continued)
June 30, 2006
Government -wide Financial Analysis (Continued)
Table 1
CITY OF DIAMOND BAR'S
Statement, of Net Assets
Current and other assets
Capital assets
Total Assets
Long-term debt outstanding
Other Liabilities
Total Liabilities
Net assets:
Invested in capital assets, net of debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
2006
2005
$39,755,482
$39,547,890
27,421,565
23,729,680
67,177,047
- 63,277,570
13,350,051
13,558,447
4,907,906
3,587,323
18,257,957
17,145,770
14,593,935
10,692,694
4,863,977
5,419,372
29,461,178 -
30,019,734
$48,919,090
$46,131,800
The City's Net Assets increased this year by $3,031,855 or 6.61%. The primary reason for this growth
is due a higher investment in capital assets including the purchase of land for economic development
purposes and significant infrastructure .improvements.
The City's total revenues were $24.8 million, while the total cost of all programs and services was
$21.8 million. Revenues this fiscal year were 10.10% higher than those of the prior year. There were
increases in most of the revenue categories. The following are highlights of some of the major
differences:
• Charges for services increased this year due to several factors. The building development
fees were higher as a result of the construction of a major housing development and a new
Target Department store. Another factor was the increased participation in the City's
discounted transit pass program.
• Operating grants and contributions increased as a result of the City obtaining and using
various grants to augment City resources in the financing of various capital improvements.
• The significant increase in property tax revenue and offsetting decrease in Motor Vehicle in
Lieu revenue is due to the change in the allocation of funds to the City by. the State. Some
of the revenue that had previously been received from the State in the form of Motor
Vehicle in Lieu revenue has been replaced with Property Tax Revenues. In addition
property values have increased resulting in an increase in the property tax base.
® Sales tax and franchise taxes were all higher this year due to a growing economy.
• Investment Income has increased significantly due to rising interest rates and the
diversification of the City's investment portfolio. This year the City started investing some
of its funds in longer term securities resulting in a higher investment yield (see note. 2).
See independent auditors' report.
-6-
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2006
Government -wide Financial Analysis (Continued)
Table 2
City of Diamond Bar's
Changes in Net Assets
Revenues:
Program revenues:
,Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues
Property taxes
Transient occupancy taxes
Sales Taxes
Property Taxes in Lieu of Sales Taxes
Franchise Taxes
Motor vehicle in lieu
Property transfer tax
Othertaxes
Investment Income
Other
Total revenues
Expenses:
General Government
Public Safety
Highways and Streets
Community Development
Parks, Recreation and Culture
Interest on long-term debt
Total expenses
Change in net assets
Net assets - Beginning of year
Net assets - End of year
2006 2005
$4,818,125 $4,129,802
5,281,308 4,040,785
1,150
6,769,553 3,155,723
718,889
717,879
2,964,877
2,645,096
984,472
863,245
996,567
941,319
413,230
4,386,800
416,423
413,247
35,522
35,283
1,051,922
532,091
361,622
676,292
24,813,660
22,537,562
4,203,123
3,997,319
5,418,005
4,969,183
5,240,568
4,622,014
2,759,718
1,050,025
3,737,071
3,814,887
423,320
270,735
21,781, 805
18,724,163
3,031,855
3,813,399
45,887,235
42,073,836
$48,919,090
$45,887,235
Expenditures were higher (16.33%) this fiscal year as well. The increase is primarily due to increased
services to the community.
® General Government was higher this year due primarily to changes made in the City's
Information Technology Division. This division has been responsible for the implementation
of several new computer systems this year. Another factor in the increase in General
Government is due to the increased cost of the lease paid to the Public Financing Authority for
the Diamond Bar Center. This lease amount is based on the debt service due on the variable
rate lease revenue bonds that were issued to build the Center. Since interest rates have been
rising, so has this cost.
See independent auditors' report.
7
101 WA D) 2 R K 13 111 Z10111 F., I
Management's Discussion and Analysis
(Continued)
June 30, 2006
Government -wide Financial Analysis (Continued)
Changes in Net Assets (Continued)
Public Safety increased due to the rising cost of the sheriffs contract with the County. There
were overall contract rate increases. Another factor in this increase was due to the fact that in
the previous fiscal year, the City had one contracted position which remained vacant for most
of the year.
The Highways and Streets category increased due to rising street maintenance costs. In
addition during the year the lighted street name signs at most of the major intersections were
replaced.
Community Development increased significantly due to the emphasis the City has placed on
Economic Development. This year the City purchased land that will be used in the future for
Economic Development purposes.
As mentioned earlier rising interest rates on the outstanding variable rate lease revenue bonds
caused an increase in interest and fiscal 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 $31,849,025, a decrease of $584,291 in comparison with the prior
year. Of this amount, there is $2,082,577 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, the unreserved fund balance of the general fund was $25,103,444, while the total fund
balance reached $26,413,616. 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 154.4% of total general fund expenditures, while total fund balance represents
162.4% of the same amount.
See independent auditors' report.
-8-
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2006
Financial Analysis of the City's Funds (Continued)
Governmental funds (Continued). Overall the fund balance of the City of Diamond Bar's general
fund increased by $477,977 during the current year. Since the City's incorporation, the City has been
fiscally conservative contributing to healthy fund balance reserves. Other factors contributing to this
growth are as follows:
• Property tax revenue increased due the unprecedented rise in property values within the
Southern California region and a favorable real estate market.
• Some of the revenues received from the State for Motor Vehicle in Lieu fees are now based on
an allocation of property taxes based on property values. Previously it had been allocated
based on population. As a result since the City's property values have increased so has this
revenue source.
• Sales tax increased as a result of a growing economy and the dramatic increase in fuel prices
C)
since some of the City's largest sales tax producers are gas stations.
• There was dramatic increase in building related fees. This is due to some of the City's
economic development activities. This year saw the development of a new shopping area
which includes a new Target store, a major housing development, Brookstone Homes and the
C)
rebuildino, of the Country Hills Town Center shopping center.
• Rents and Concessions continued to rise due to the popularity of the City's park facilities
including the Diamond Bar Center.
• Investment income from higher interest rates and higher cash balances in the General Fund
contributed to the growth of the General Fund as well.
General Fund Budgetary Highlights
Although original revenue budget projections were increased during the year by 10.1% actual revenues
exceeded expectations by another 9.57%. In all but one category actual revenues exceeded
expectations.
The. General Fund taxes category include property taxes, sales tax, franchise tax and property transfer
tax. These revenues exceeded expectations by $947,058. The variance between the amount budgeted
[ j and the amount received is due to the fact that the City has traditionally budgeted revenues
conservatively without building a lot of growth into the budget. This along with the economic growth
caused the dramatic difference between the budget and actual numbers. The fiscal year 2006-07
budget has been created to reflect more realistic revenue projections.
See independent auditors' report.
-9-
Management's Discussion and Analysis
(Continued)
June 30, 2006
General Fund Budgetary Highlights (Continued)
The City received a federal grant which had not been budgeted. This grant was reimbursement for
some of the expenditures related to the construction of the Diamond Bar Center. It was questionable as
to when and if the City would receive the funding so therefore it was not budgeted prior to its receipt.
The investment income revenue estimate was much higher than anticipated due to higher investment
yields and a slight change in investment strategy.
Other revenues exceeded expectations partially due to the unanticipated receipt of a settlement from an
audit of the Cable TV franchisee.
General Fund expenditures for fiscal year 2005-06 were anticipated to be $18,383,662 according to the
amended budget numbers. The actual expenditures equaled $16,263,047 or $2,120,615 less than
anticipated. Most of the expenditure categories came in under budget. Some of this is due to the
creation of a conservative budget which in some areas incorporated worst case scenarios. The City also
experienced a turnover in several staff positions resulting in salary savings in. several departments. As
a result of this turn over in staff many of the projects budgeted had to be postponed until a later date. In
some cases the projects were encumbered at the end of the fiscal year or simply re -budgeted in fiscal
year 2006-07. Contract commitments in the form of encumbrances equaled $491,061 at the end of the
fiscal year.
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, 2006 amounts to $27,421,565 (net of accumulated depreciation). This investment in
capital assets includes land, buildings and improvements, furniture and fixtures, vehicles and
equipment, some infrastructure and construction in progress. The total increase in the City's
investment in capital assets was 15.56% from the previous year (see Table 3).
At this time, the City has not valued its infrastructure and therefore only the infrastructure
improvements constructed since fiscal year 2002-2003 have been included at this time.
As mentioned in the discussion of the Economic Development expenditures, the City purchased land
this fiscal year and as a result the City's investment in land increased by $953,725.
The decrease in Furniture and Fixtures was due to the deletion of excess office furniture which was
surplused.
See independent auditors' report.
_10-
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2006
Capital Asset and Debt Administration (Continued)
Capital assets (Continued) - The increase in Vehicles and Equipment is primarily a result of the
purchase of three new trucks and the activities of the Information Technology Division. The trucks
were purchased to replace two of the aging fleet and to provide a vehicle for a new road maintenance
staff member. The Information Technology
equipment increased as well due to the replacement or
purchases of new computer servers.
Table 3.
City of Diamond Bar
Capital Assets
(net of depreciation)
Land
Buildings and Improvements
Furniture and Fixtures
Vehicles & Equipment
Infrastructure
Construction in Progress
2006
2005
$6,206,190
$5,252;465
15,233,102
15,440,854
11,875
12,275
539,624
438,420
2,483,021
1,686,888
2,947,753
898,778
$27,421,565
$23,729,680
Capitalized infrastructure increased due to the completion of five street related projects. These
included:
® A traffic signal located at Golden Springs Drive and Adel/Highknob.
® A new ADA accessible sidewalk on Diamond Bar Boulevard between the 60 freeway and
Solitaire Drive.
® Parkway and median improvements on Pathfinder Road near Evergreen Springs Road.
• Parkway and median improvements on Brea Canyon Road near Gemdal Street and Golden
Springs Drive and Adel Avenue.
® Parkway and median improvements on Diamond Bar Blvd south of Mountain Laurel.
Construction in progress at the end of the year included twenty projects in various stages of
I y C)
construction. There were four park improvement projects in progress totaling $113,633. There was
one major road construction project (Grand Ave — Beautification and Betterment Phase I) amounting to
$2,137,502. There were a variety of traffic signal improvements' and parkway improvements either in
the design phase or under construction at the end of the year. These projects totaled $696,618 at the
end of the year.
Additional information on the City's capital assets can be found in note 4.
See independent auditors' report.
I - �
16111WA010111,300101 ' '
Management's Discussion and Analysis
(Continued)
June 30, 2006
Capital Asset and Debt Administration (Continued)
Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt
equaled $13,686,974. The following table shows the breakdown of the debt outstanding.
Table 4
City of Diamond Bar
Outstanding Long Term Debt at Year-end
Variable Rate Lease Revenue Bonds
(backed by the Public Financing
Authority) $ 13,520,000
Unamoritzed Bond Discount (123,795)
Compensated Absences (backed by
the City) 290,769
$ 13,686,974
Additional information on the City's long-term debt can be found in Note 5.
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 2006-2007 budget is a fiscally conservative budget. Anticipated revenues in the General
Fund have increased by approximately 6% which is a reflection of continued growth in the economy.
At the same time General Fund appropriations have only increased by 4% to cover the cost of living
increases in the region. The City has made a conscientious decision to use some general fund balance
reserves for economic development purposes. As a result, the FY07 budget includes an appropriation
for economic development. It is anticipated that these efforts will continue to be rewarded in the near
future with the development of several new retail spaces.
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a
general overview of the City of Diamond Bar's finances and to show the City's accountability for the
C�
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.
See independent auditors' report.
-12-
BASIC FINANCIAL STATEMENTS
-13-
THIS PAGE LEFT BLANK INTENTIONALLY
-14-
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
June 30, 2006
ASSETS:
Cash and investments (Note 2)
Accounts receivable
Interest receivable
Due from other governments
Due from employees
Notes receivable
Deposits
Deferred charges
Restricted assets:
Cash and investments with fiscal agents (Note 2)
Capital assets, not depreciated (Note 4)
Capital assets, depreciated, net (Note 4)
TOTAL ASSETS
LIABILITIES:
Accounts payable
Accrued payroll
Interest payable
Deposits payable
Retentions payable
Due to other governments
Advance from other governments
Noncurrent liabilities (Note 5):
Due within one year
Due in more than one year
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for:
Debt service
Capital projects
Specific programs
Unrestricted
TOTAL NET ASSETS
See independent auditors' report and notes to basic financial statements.
-15-
Governmental
Activities
$ 35,178,211
342,107
362,641
2,579,345
3,538
137,595
64,000
568,575
519,470
9,153,943
18,267,622
67,177,047
2,603,475
81,437
43,323
1,092,108
251,689
361,356
137,595
336,923
13,350,051
18,257,957
14,593,935
243,697
3,323,474
1,296,806
29,461,178
$ 48,919,090
CITY OF DIAMOND BAR
STATEMENT OF ACTIVITIES
For the year ended June 30, 2006
Functions/programs
Expenses
Governmental activities:
Net (Expense)
General government
$ 4,203,123
Public safety
5,418,005
Highways and streets
5,240,568
Community development
2,759,718
Parks, recreation
Program Revenues
and culture
3,737,071
Interest on long-term debt
423,320
Total governmental
activities
$ 21,781,805
(423,320)
$ 4,818,125 $ 5,281,308 $ 1,150 (11,681,222)
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Property taxes in lieu of sales taxes
Franchise taxes
Property transfer tax
Other taxes
Unrestricted motor vehicle in lieu
Investment income
Other revenue
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR,
AS RESTATED (NOTE 12)
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
- 16-
6,769,553
718,889
2,964,877
984,472
996,567
416,423
35,522
413,230
1,051,922
361,622
14,713,077
3,031,855
45,887,235
$ 48,919,090
Net (Expense)
Revenue and
Changes in
Program Revenues
Net Assets
Charges
Operating
Capital
for
Grants and
Grants and
Governmental
Services
Contributions
Contributions
Activities
$ 707,272
$ 5,662
$ -
$ (3,490,189)
1,277,170
165,341
-
(3,975,494)
1,555,993
3,892,883
-
208,308
16,841
775,091
1,150
(1,966,636)
1,260,849
442,331
-
(2,033,891)
(423,320)
$ 4,818,125 $ 5,281,308 $ 1,150 (11,681,222)
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Property taxes in lieu of sales taxes
Franchise taxes
Property transfer tax
Other taxes
Unrestricted motor vehicle in lieu
Investment income
Other revenue
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR,
AS RESTATED (NOTE 12)
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
- 16-
6,769,553
718,889
2,964,877
984,472
996,567
416,423
35,522
413,230
1,051,922
361,622
14,713,077
3,031,855
45,887,235
$ 48,919,090
GOVERNMENTAL FUNDS
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.
SPECIAL REVENUE FUND
The Special Revenue Fund is used to account for the proceeds of specific revenue sources that are
restricted by law or administrative action for a specified purpose. The following Special Revenue
Fund has been classified as a major fund in the accompanying financial statements:
Proposition A Transit Fund - This fund is used to account for the receipt and expenditure of the City's
share of the 1/z cent sales tax levied in Los Angeles County for local transit purposes.
CAPITAL PROJECTS FUND
The Capital Projects Fund is used to account for the acquisition and construction of major capital
facilities. The following Capital Projects Fund has been classified as a major fund in the
accompanying financial statements:
Capital Improvement Fund - This fund is used 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.
-17-
CITY OF DIAMOND BAR
BALANCESHEET
GOVERNMENTAL FUNDS
June 30, 2006
ASSETS
ASSETS:
Cash and investments
Cash and investments with fiscal agent
Accounts receivable
Interest receivable
Due from other funds (Note 3)
Due from employees
Due from other governments
Deposits
Notes receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued payroll
Deposits payable
Due to other funds (Note 3)
Deferred revenue
Retentions payable
Advances from other governments
TOTAL LIABILITIES
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
Deposits
Improvements
Bond retirement
Debt service
Unreserved, Reported in:
General Fund
Special Revenue Funds
Capital Projects Funds
TOTAL FUND BALANCES (DEFICIT)
TOTAL LIABILITIES AND FUND BALANCES
$ 1,839,155 $ 116,385 $ 512,676
75,884 1,824 -
1,092,108 - -
- - 517,760
320,925 - 496,416
- - 251,689
See independent auditors' report and notes to basic financial statements.
-18-
3,328,072 118,209 1,778,541
491,061 - 1,560,758
64,000 - -
2,207 - 396,293
752,904 - -
25,103,444 - -
- 938,230 -
- - (2,612,373)
26,413,616 938,230 (655,322)
$ 29,741,688 $ 1,056,439 $ 1,123,219
Special
Capital
Revenue Fund
Projects Fund
General
Prop A Transit
Capital
Fund
Fund
Improvement
$ 27,191,624
$ 1;056,423
$ -
40,619
-
191,831
292,102
16
-
362,641
-
-
549,832
-
323,299
3,538
-
-
1,237,332
-
608,089
64,000
-
-
$ 29,741,688
$ 1,056,439
$ 1,123,219
$ 1,839,155 $ 116,385 $ 512,676
75,884 1,824 -
1,092,108 - -
- - 517,760
320,925 - 496,416
- - 251,689
See independent auditors' report and notes to basic financial statements.
-18-
3,328,072 118,209 1,778,541
491,061 - 1,560,758
64,000 - -
2,207 - 396,293
752,904 - -
25,103,444 - -
- 938,230 -
- - (2,612,373)
26,413,616 938,230 (655,322)
$ 29,741,688 $ 1,056,439 $ 1,123,219
Other Total
Governmental Governmental
Funds Funds
$ 5,096,866 $ 33,344,913
287;020
519,470
49,989
342,107
-
362,641
355,371
-
873,131
l
-
3,538
733,924
2,579,345
-
64,000
137,595
137,595
$ 6,305,394
$ 38,226,740
$ 135,259
$ 2,603,475
3,729
81,437
-
1,092,108
355,371
873,131
520,939
1,338,280
-
251,689-
137,595
137,595
1,152,893 6,377,715
30,758 2,082,577
- 64,000
398,500
- 752,904
287,020 287,020
25,103,444
4,834,723 5,772,953
- (2,612,373)
5,152,501 31,849,025
$ 6,305,394 $ 38,226,740
91
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CITY OF DIAMOND BAR
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2006
Fund balances for 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 liabilities applicable to the City governmental activities are not due and
payable in the current period and accordingly are not reported as fund liabilities. Also;
bond issuance costs do not provide current financial resources and are not reported
in the governmental funds. All liabilities, both current and long-term, are reported in
the Statement of Net Assets. Balances at June 30, 2006 are:
Bonds payable
Deferred charges for issuance costs
Bond discount
Compensated absences
Accrued interest payable from the current portion of interest due on bonds payable
has not been reported in the governmental funds.
Long-term assets that are not available for current use. Amounts are recorded
as deferred revenue under the modified accrual basis of accounting.
Internal service funds are used by management to charge the costs of certain activities,
such as equipment management, to individual funds. The assets and liabilities of
the internal service funds must be added to the Statement of Net Assets.
Net assets of governmental activities
See independent auditors' report and notes to basic financial statements.
-21-
$ 31,849,025
27,335,199
$ (13,520,000)
568,575
123,795
(290,769) (13,118,399)
(43,323)
1,338,280
1 55R 11M
$ 48,919,090
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended June 30, 2006
REVENUES:
Taxes
Special assessments
Intergovernmental revenue
Charges for services
Fines and forfeitures
Licenses, permits and fees
Investment income
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Highways and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR
FUND BALANCES (DEFICIT) - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-22-
3,551,659 - -
5,395,998 . - -
2,439,740 1,634,577 -
2,613,834 - -
2,261,816 - -
- - 5,320,597
16,263,047 1,634,577 5,320,597
2,431,984 19,294 (5,077,569)
1,224,783 - 4,598,518
(3,178,790) - -
(1,954,007) - 4,598,518
477,977 19,294 (479,051)
25,935,639 918,936 (176,271)
$ 26,413,616 $ 938,230 $ (655,322)
Special
Capital
Revenue Fund
Projects Fund
General
Prop A Transit
Capital
Fund
Fund
Improvement
$ 9,508,757
$ -
$ -
4,449,031
959,518
241,878
-
659,218
-
589,922
-
-
2,389,149
-
-
985,531
35,135
1,150
772,641
-
-
18,695,031
1,653,871
243,028
See independent auditors' report and notes to basic financial statements.
-22-
3,551,659 - -
5,395,998 . - -
2,439,740 1,634,577 -
2,613,834 - -
2,261,816 - -
- - 5,320,597
16,263,047 1,634,577 5,320,597
2,431,984 19,294 (5,077,569)
1,224,783 - 4,598,518
(3,178,790) - -
(1,954,007) - 4,598,518
477,977 19,294 (479,051)
25,935,639 918,936 (176,271)
$ 26,413,616 $ 938,230 $ (655,322)
Other
ITotal
Governmental
Governmental
Funds
Funds
$ -
$ 9,508,757
504,908
504,908
3,170,714
8,821,141
211,096
870,314
-
589,922
-
2,389,149
228,754
1,250,570
19,575
792,216
4,135,047
24,726,977
-
3,551,659
8,261
5,404,259
695,180
4,769,497
- 1
2,613,834
486,723
2,748,539
-
5,320,597
235,000
235,000
404,075
404,075
1,829,239 25,047,460
2,305,808 (320,483)
646,222
6,469,523
(3,555,171)
(6,733,961)
(2,908,949)
(264,438)
(603,141)
(584,921)
5,755,642 1 32,433,946
$ 5,152,501 $ 31,849,025
-23-
CITY OF DIAMOND BAR
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2006
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities, the cost of those assets is allocated over
the estimated useful lives as depreciation expense. This is the amount
by which depreciation exceeded capital expense in the current period:
Capital expenditures $ 4,941,840
Depreciation expense (1,307,113)
The net effect of various miscellaneous transactions involving capital assets
(i.e. sales, trade-ins and donations) is to decrease net assets.
The issuance of long term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also,
governmental funds report the effect of issuance costs, premiums,
discounts and similar items when the debt is first issued, whereas
these amounts are deferred and amortized in the Statement of Activities,
These amounts are the net effect of these differences in the treatment
of long-term debt and related items:
Principal payment
235,000
Amortization of bond discount
(4,585)
Amortization of issuance costs
(21,059)
Compensated absences
(40,528)
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 the governmental funds:
Interest expense
Some revenues reported in the Statement of Activities are not considered
to be available to finance current expenditures and therefore are not
reported as revenues in the governmental funds
Internal service funds are used by management to charge the costs of
certain activities, such as self-insurance, equipment management, and
computer management, to individual funds. The net revenues (expenses)
of the internal service funds is reported with governmental activities.
Change in net assets of governmental activities
See independent auditors' report and notes to basic financial statements.
-24-
(584,921)
3,634,727
(14,819)
168,828
(14,660)
28,800
(186,100)
$ 3,031,855
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2006
Internal
Service
Funds
ASSETS
CURRENT ASSETS:
Cash and investments
$ 1,833,298
I. NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
188,613
Less accumulated depreciation
(102,247)
TOTAL NONCURRENT ASSETS
86,366
TOTAL ASSETS
1,919,664
CURRENT LIABILITIES:
Due to other governments
361,356
NET ASSETS
Invested in capital assets
86,366
Unrestricted
1,471,942
TOTAL NET ASSETS
$ 1,558,308
L1
1 .1
See independent auditors' report and notes to basic financial statements.
-25-
CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
For the year ended June 30, 2006
OPERATING EXPENSES:
Insurance premiums
Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES (EXPENSES):
Loss on disposal of capital asset
Investment income
TOTAL NONOPERATING REVENUES (EXPENSES)
LOSS BEFORE TRANSFERS
TRANSFERS IN
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR, AS RESTATED
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-26-
Internal
Service
$ 488,019
20,141
508,160,
(508,160)
(261)
57,883
57,622
(450,538)
264,438
(186,100)
1,744,408
$ 1,558,308
CITY OF DIAMOND BAR
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance deposits
Insurance payments
NET CASH USED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers from other funds
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of capital assets
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
NET CASH PROVIDED BY INVESTING ACTIVITIES
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:'
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivables
Increase (decrease) in due to other governments
TOTAL ADJUSTMENTS
NET CASH USED BY OPERATING ACTIVITIES
See independent auditors' re and notes to basic financial statements.
-27-
Internal
Service
Funds
$ 48,148
(211,752)
(163,604
264,438
264,438
(92,379)
(92,379)
57,883_
57,883
66,338
1,766,960
$ 1,833,298
$ (508,160)
20,141
49,148
276,267
344,556
$ (163,604)
THIS PAGE LEFT BLANK INTENTIONALLY
NOTES TO BASIC FINANCIAL STATEMENTS
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2006
REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES:
a. Description of Reporting Entity:
The City of Diamond Bar (the City) was incorporated April 18, 1989 as a "General Law" City
governed b * y an elected five -member city council. As required by accounting principles
generally accepted in the United States ofAmerica, these financial statements present the City
of Diamond Bar (the primary government) and its component units. The component units
discussed below are included in the City's reporting entity because of the significance of their
operational or financial relationship with the City. These entities are legally separate from each
other. However, the City of Diamond Bar's elected officials have a continuing full or partial
accountability for fiscal matters of the other entities. The financial reporting entity consists of.
(1) the City (2) organizations for which the City is financially accountable; and,
(3) organizations for which the nature and significance of their relationship with the City are
such that exclusion would cause the City's financial statements to be misleading or incomplete.
An organization is fiscally dependent on the primary government if it is unable to adopt its
budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary
government. In a blended presentation, a component unit's balances and transactions are
reported in a manner similar to the balances and transactions of the City. Component units are
presented on a blended basis when the component unit's governing body is substantially the
same as the City's or the component unit provides services almost entirely to the City.
Blended Component Units:
The Diamond Bar Community Redevelopment Agency Agency) ency) was established
Ag
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 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 deemed invalid. No activities occurred
during the year ended June 30, 2006. Accordingly, no financial statements of the Agency were
issued.
The Diamond Bar Public- Financing Authority (the Authority) was formed on
November 19, 2002. The purpose of the Authority is to issue debt to finance public
improvements and other capital purchases for the City and Agency. The activity of the
Authority is reported in debt service and capital projects funds.
See independent auditors' report.
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
1. - REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Government -Wide and Fund Financial Statements:
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the City. For
the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support. The City has no business -type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues.. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds are reported as separate columns in the fund financial
statements.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation:
The basic financial statements of the City are composed of the following:
•Government -wide financial statements
• 'Fund financial statements
0 Notes to basic financial statements
Financial reporting for the government -wide financial statements 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.
See independent auditors' report.
-29-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued):
The government -wide financial statements and proprietary fund financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Under the economic resources measurement focus, all assets and liabilities (current and
long-term) are reported. Under the accrual basis of accounting, revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the fiscal year, which the taxes
are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all the eligibility requirements imposed by the provider have been met.
Proprietary, funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the City's internal service funds are charges to customers for
services. Operating expenses for the proprietary funds include the cost of services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the current financial
resources measurement focus, generally only current assets and liabilities are reported in the
governmental funds. Governmental fund operating statements present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current
assets. Under the modified accrual basis of accounting, revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the government considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when
a liability is incurred, except for principal and interest on general long-term liabilities, claims
and judgments, and compensated absences which are recognized as expenditures only when
payment is due.
See independent auditors' report.
B-112
wo-swel a@ V.30 [93121101 O.Y.11 10
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued):
Property taxes, taxpayer -assessed taxes, such as sales taxes, gas taxes, and transient occupancy
taxes, and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to
be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the government. .
The accounts of the City are organized and operated on the basis of funds, each of which is
considered a separate accounting entity with a self -balancing set of accounts, established for the
purpose of carrying on specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted resources.
d. Fund Classifications:
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City and is use ' d to account for all
revenues and expenditures of the City not legally restricted as to use. A broad range of
municipal activities are provided through this fund including City Manager, City Attorney,
Finance, City Clerk, Public Works, Building and Safety, and Parks and Recreation.
Proposition A Transit Special Revenue Fund - This fund is used to account for the receipt and
expenditure of the City's share of the 1/z cent sales tax levied. in Los Angeles County for local
transit purposes.
The Capital Improvement Capital Projects Fund is used 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.
See independent auditors' report.
-31-
El M41MM10011
• 10111 0
June 30, 2006
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING: POLICIES (CONTINUED):
d. Fund Classifications (Continued):
The City's fund structure also includes the following fund types:
•I 1 9 "201
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
restricted by law or administrative action for a specified purpose.
Debt Service Fund is used primarily to account for the accumulation of resources for the
payment of principal and interest on long-term liabilities of the City.
Capital Projects Fund is used 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).
.. • .. 1 W• IMA28101
Internal Service Funds have been established to finance and account for goods and services
C,
provided by one City department to other City departments or agencies. These activities
include self-insurance, equipment and computer maintenance.
e. Investments:
For financial reporting purposes, investments are stated at fair value.
Changes in fair value that occur during a fiscal year are recognized as investment income
Z111
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,
IM
See independent auditors' report.
-32-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
L Cash and Cash Equivalents:
For purposes of the statement of cash flows, cash and cash equivalents are defined as
short-term, highly liquid ' investments that are both readily convertible to known amounts of
cash or so near their maturity (an original maturity date of three months or less from the date of
purchase) that they present insignificant risk of changes in value because of changes in interest
rates. Cash and cash equivalents also represent the proprietary funds' share in the cash and
investment pool of the City. All cash and investments of the proprietary (internal service) funds
are pooled with the City's pooled cash and investments and are therefore considered cash
equivalents for purposes of the statement of cash flows.
g. Capital Assets:
Capital assets (including infrastructure) are record ' ed at cost where historical records are
available and at an estimated original cost where no historical records exist. Contributed
capital assets are valued at their estimated fair market value at the date of contribution. Capital
asset purchases (other than infrastructure) in excess of $1,500 are capitalized if they have an
expected useful life of three years or more.
Capital assets include additions to public domain (infrastructure), certain improvements
including roads, streets, sidewalks, medians and storm drains within the City. 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
the fiscal year ending June 30, 2007.
Capital assets used in operations are depreciated over their estimated useful lives using the
straight-line method in the Government -wide and Proprietary Fund Financial Statements.
Depreciation is charged as an. expense against operations and accumulated depreciation is
reported on the respective balance sheet. The lives used for depreciation purposes of each
capital asset class are:
Buildings and improvements 10 - 20 years
Furniture and fixtures 3 - 5 years
Vehicles and equipment 5 years
Infrastructure 10 - 50 years
See independent auditors' report.
-33-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
h. Encumbrances:
Encumbrance accounting, under which purchase orders, contracts and other commitments for
C,
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.
i. 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.
A liability is recorded for unused vacation and similar compensatory leave balances since the
employees' entitlement to these balances are attributable to services already rendered and it is
probable that virtually all of these balances will be liquidated by either paid time off or
payments upon termination or retirement.
A liability is recorded for unused sick leave balances only to the extent that it's probable that
the unused balances will result in termination payments. This is estimated by including in the
liability the unused balances of employees currently entitled to receive termination payments,
as well as those who are expected to become eligible to receive termination benefits as a result
of continuing their employment with the City.
If an employee 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.
j. Deferred Charges:
C
Deferredcharges represent capitalized costs incurred in connection with the issuance of
Z:)
long-term debt. These costs are amortized over the life of the debt on a straight-line basis.
C)
See independent auditors' report.
-34-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED);
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 accrues
only those taxes which are received from the County within 60 days after year end.
Property taxes are assessed and collected each fiscal year according to the following property
tax calendar:
Lien date
Levy date
Due dates
Collection dates
Delinquent dates
1. Use of Estimates:
January 1
July 1
November 1 - 1St installment
February 1 - 2nd installment
December 10 - 1St installment
April 10 - 2nd installment
December 11 - 1St installment
April 11 - 2nd installment
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenditures during the reporting period. Actual results could differ from
those estimates.
See independent auditors' report.
-35-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
2. CASH AND, INVESTMENTS:
Cash and Investments:
Cash and investments at June 30, 2006 consisted of the following. -
Statement of Net Assets:
Cash and investments
$ 35,178,211
Cash and investments with fiscal agents
519,470
$ 35,69701
Cash and investments held by the City at June 30, 2006 consisted of
the following:
Irnprest cash on hand
$ 1,500
Demand deposits (overdraft)
(401,279)
Escrow deposits
232,450
Investments:
U.S. Government Sponsored Enterprise Securities
5,946,100
Repurchase agreements
486,718
Local agency investment fund
29,145,172
Held by Bond Trustee:
Cash
285,163
Money Market Mutual Funds
1,857
$ 35,697,681
See independent auditors' report.
-36-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government Code and the City's Investment Policy:
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the City's investment policy,
where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the California
Government Code or the City's investment policy.
Maximum
Maximum
Maximum
Percentage
Investment
.
Authorized Investment Type
Maturi!y
of Portfolio*
in One Issuer
United States (U.S.) Treasury Obligations
5 years
None
None
U.S. Government Sponsored
Enterprise Securities
5 years
20%
None
Banker's Acceptances
180 days
40%
30%
Time Certificate of Deposits
5 years
None
None
Commercial Paper
270 days
25%
10%
Negotiable Certificates of Deposit
5 years
30%.
None
Money Market Mutual Funds
N/A
15%
None
Repurchase Agreements,
1 year
None
None
Medium. -Term Corporate Notes (1)
5 years
30%
None
Local Agency Investment Fund (LAIF)
N/A
None
$ 40.,000,000
Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
(1) Notes must be rated "A" or better.
N/A - Not Applicable
See independent auditors' report.
-37-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by Debt Agreements:
Investments of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the City's
investment policy. The table below identifies the investment types that are authorized for
investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
Disclosures Relating to Interest Rate Risk:
Maximum
Percentage/
Amount
Allowed
I_MW
10%
None
None
None
None
None
Equal to six
months of
principal and
interest on
the bonds
Maximum
Investment
in One Issuer
None
None
None
None
None
None
•l
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
See independent auditors' report.
-38-
1
Maximum
Authorized Investment Type
Maturity
U.S. Treasury Obligations
None
U.S. Government Sponsored
Enterprise Securities
None
Banker's Acceptances
1 year
Time Certificate of Deposits
None
Local Agency Investment Fund
None
Money Market Funds
None
Repurchase Obligations
Tax Exempt
30 days
Taxable Government Money
Market Portfolios
None
Disclosures Relating to Interest Rate Risk:
Maximum
Percentage/
Amount
Allowed
I_MW
10%
None
None
None
None
None
Equal to six
months of
principal and
interest on
the bonds
Maximum
Investment
in One Issuer
None
None
None
None
None
None
•l
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
See independent auditors' report.
-38-
1
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk (Continue
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity:
Remaining Maturity (in Months)
12 Months 13-24 25-60
Investment Type
or Less Months Months Total
U.S. Government Sponsored Enterprise
Securities
$ 2,978,500 $ 2,967,600 $ - $ 5,946,100
Repurchase Agreements
486,718 - - 486,718
Local Agency Investment Fund
29,1 45,172 - 29,145,172
Held by Bond Trustee:
Money Marker Mutual Funds
1,857 - 1.857
$ 32,612,24-7 $ 2,967&Q0 $ $ 35,579,842
Disclosures Relating to Credit Risk:
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assigrument, of a rating by a nationally recognized
statistical rating organization. Presented
below is the minimum rating required by (where
applicable) the California Government Code, the City's investment policy, or debt agreements, and
the actual rating, as reported by Standard and Poor's, as of year end for each investment type:
Total
Minimum
as of
Legal Not
Investment Type June 30, 2006
Rating—. AAA Rated
U.S. Government
Sponsored Enterprise
Securities $ 5,946,100
AAA 5,946,100 $
Repurchase Agreements 486,718
N/A - 486,718
Local Agency
Investment Fund 29,145,172
N/A 29,145,172
Held by Bond Trustee:
Money Market
Mutual Funds 1.857
A 1,857
Total 35.5.7-9847
$ 5,947,957 $ 29,631-890
N/A - Not Applicable
See independent auditors' report.
-39-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Custodial Credit Risk:
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside pony. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The California Government Code and the
City's investment policy do not contain legal or policy requirements that would limit the exposure
to custodial credit risk for deposits or investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits made by state
or local go vernmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The market
value of the pledged securities in the collateral pool must equal at least 110% of the total amount
deposited by the public agencies. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits. The City does not accept 150% of the secured 'public totals. At June 30, 2006, the City
deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to
$100,000 and the remaining balances were collateralized under California Law. The cash and
investments held by Bond Trustee are uninsured and uncollateralized.
Investment in State Investment Pool:
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of the City's investment in this pool is reported in the accompanying
financial statements at amounts based upon the City's pro -rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis.
See independent auditors' report.
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
3. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
The composition of interfund balances as of June 30, 2006, is as follows:
Due To/From Other Funds:
Receivable Fund
General Fund
Capital Improvement
Capital Projects Fund
Payable Fund
Capital Improvement Capital
Projects Fund
Other Governmental Funds
Other Governmental Funds
Amount
$ 517,760
32,072
323,299
$ 873,131
The amounts loaned from'the General Fund to the Capital Improvement Capital Projects Fund and
Other Governmental Funds are to provide a short-term loan to fund temporary cash shortfalls.
The amounts loaned from the Capital Improvement Capital Projects Fund to Other Governmental
Funds are to provide a short-term loan to fund construction project expenditures.
Interfund Transfers:
Transfers In Transfers Out Amount
General Fund Other Governmental Funds $ 1,224,783
Capital Improvement General Fund 2,423,221
Capital Projects Fund Other Governmental Funds 2,175,297
Other Governmental Funds General Fund 491,131
Other Governmental Funds 155,091
Internal Service Funds General Fund 264,438
6,733,,961
Transfers to the General Fund from the Other Governmental -Funds were made to reimburse the
General Fund for various capital projects.
Transfers to the Capital Improvement Capital Projects Fund from the General Fund and Other
Governmental Funds were made to provide the funding necessary to accomplish those projects
approved by the City Council.
Transfers from the General Fund to the Other Governmental Funds were made to provide for debt
service payments. Transfers from the General Fund to the Internal Service Funds were made to
provide for purchases of a vehicle and equipment and uninsured insurance losses.
See independent auditors' report.
-41-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
4. CAPITALASSETS:
A summary of changes in the Governmental Activities capital assets at June 30, 2006 is as follows:
Capital assets, being depreciated:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total capital assets
beingdepreciated
Less accumulated depreciation for:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total accumulated depreciation
Total capital assets
being depreciated, net
Total Governmental Activities
capital assets, net
19,245,306 903,927 20,149,233
71,239 2,347 (5,081) 68,505
1,220,702 242,103 (76,255) 1,386,550
1,779,698 883,147 2.662.845
22,316,945 2,031,524 (81,336) 24,267,133
(3,804,452)
Balance
- (4,916,131)
Balance at
(2,747)
July 1, 2005
Additions
Deletions June 30, 2006
Capital assets, not being depreciated:
(92,81
(87,014)
- (179,824
Land
$ 5,252,465
$ 953,72 * 5
$ - $ 6,206,190
Construction in progress
898,778
3,8 5,049
(1,796,074) 2,947,753
Total capital assets,
not being depreciated
6,151,243
4,798,774
(1,796,074) 9,153,943
Capital assets, being depreciated:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total capital assets
beingdepreciated
Less accumulated depreciation for:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total accumulated depreciation
Total capital assets
being depreciated, net
Total Governmental Activities
capital assets, net
19,245,306 903,927 20,149,233
71,239 2,347 (5,081) 68,505
1,220,702 242,103 (76,255) 1,386,550
1,779,698 883,147 2.662.845
22,316,945 2,031,524 (81,336) 24,267,133
(3,804,452)
(1,111,679)
- (4,916,131)
(58,964)
(2,747)
5,081 (56,630)
(782,282)
(125,814)
61,170 (846,926)
(92,81
(87,014)
- (179,824
(4,738,508)
(1,327,254)
66,251 (5,999,511)
17,578,437 704,270 (15,085) 18.267,622
$ 23,722-6BO $ 5,503,044 $ (1,811,152) $ 27,421,565
Depreciation expense was charged to functions in the Statement of Activities as follows:
General government
$ 66,632
Public safety
13,746
Highways and streets
92,319
Parks, recreation and culture
1,123,237
Community development
11,179
Internal Service Funds depreciation
charges to program
20,141
$ 1.327.254
See independent auditors' -report.
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
5. LONG-TERM LIABILITIES:
Long-term liability activity for the year ended June 30, 2006, was as follows:
Beginning
Ending
Due Within
Balance Additions
Retirements
Balance
One Year
Bonds payable:
Revenue bonds
$13,755,000 $
$ (235,000)
$13,520,000
$ 240,000
Unamortized discount
(128,380)
49585
(123,795)
-
Compensated absences
250,241 248,658
(208,130)
290,769
96,923
Total
$13,876,K_1 $ 248.658
$ (438,545)
$13,686,974
$ 336,923
Bonds Payable:
In December 2002, the Diamond Bar Public Financing Authority issued $13,755,000 of
2002 Series A Variable Rate Lease Revenue Bonds to finance the construction of' a
community/senior center project and other public improvements within the City. The bonds are
special limited obligations of the Authority payable solely from revenues, consisting primarily of
base rental payments paid by the City. The variable interest rate on the bonds is reset on a
bi-weekly basis. As of June 30, 2006, $13,520,000 of the bonds are outstanding.
In conjunction with the Bonds, the Authority executed a rate cap agreement on December 2, 2002
(the Agreement) with JPM[organ Chase (Counterparty) to minimize debt service cost on the 2002
Lease Revenue Bonds (the Bonds) by setting a cap on the interest rate on the Bonds. Under the
Agreement, the Counterparty will pay the Authority an amount equal to the product of. (i) the
amount by which the floating rate exceeds 4.5%, (ii) the notional principal amount and (iii) the
actual number of days in the calculation period divided by 365 days. The Agreement is for a
notional amount equal to the outstanding principal amount of the Bonds and will decline as the
principal amount declines. The Agreement terminates on January 1, 2013.
Fair Value:
At June 30, 2006 the Agreement had a positive fair value of $152,798. This is the amount that the
Authority would receive in the event that the Agreement is terminated. The fair value was
estimated by the City's financial advisor.
Credit Risk:
The Counterparty, JPM[organ Chase, has the following credit ratings of: (i) Standard & Poor's, AA -
and (ii) Moody's, Aa2.
Basis Risk:
The Agreement does not expose the Authority to basis risk, which refers to a mismatch between the
interest rate cap of 4.5% and the variable rate payments to be made on the debt.
See independent auditors' report. _43-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
5. LONG-TERM LIABILITIES (CONTINUED):
Bonds Payable (Continued):
Termination Risk:
If the rate cap is terminated, the rate on the Bonds that the Authority would prospectively have to
pay will not be subject to the cap rate of 4.5%. The termination of the Agreement could therefore
increase the Authority's total debt service in the event that the variable rate is higher than the cap
rate of 4.5%. At June 30, 2006, the Agreement had a positive fair value of $152,798.
Payments and Associated Debt:
Using a variable rate of 5.08% as of June 30, 2006, debt service requirements of the Bonds and the
Counterparty's payments, assuming current interest rates remain the same for remainder of the term
of the Agreement, are as follows. As rates vary, the variable rate interest payments and net rate cap
payments will vary.
Compensated Absences:
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $290,769 at June 30, 2006 is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
See independent auditors' report.
-44-
Variable Rate Debt
Counter-
Net
Year Ending
party
Debt
June 30,
Principal
Interest
Total
Payments
Service
2007
$ 240,000
$ 686,816
$ 926,816
$ (78,416) $
848,400
2008
255,000
674,624
929,624
(77,024)
852,600
2009
265,000
661,670
926,670
(75,545)
851,125
2010
280,000
648,208
928,208
(74,008)
854,200
2011
290,000
633,984
923,984
(72,384)
851,600
2012-2016
1,675,000
2,933,700
4,608,700
(105,168)
4,503,532
2017-2021
2,105,000
2,466,594
4,571,594
-
4,571,594
2022-2026
2,655,000
1,878;584
4,533,584
-
4,533,584
2027-2031
3,345,000
1,137,412
4,482,412
-
4,482,412
2032-2034
2,410,000
248,666
2,658,666
-
2,658,666
$ 13,520,000
$ 11,970,258
$ 25,490;258
$ (482,545) $ 25.007,713
Compensated Absences:
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $290,769 at June 30, 2006 is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
See independent auditors' report.
-44-
NOTES TO BASIC FINANCIAL STATEMENTS
. (CONTINUED)
June 30, 2006
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION:
The City is a member. of the California Joint Powers Insurance Authority (Authority). The
Authority is composed of 109 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 Liabilit
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. Each member has a retention level of
$30,000 for each loss and this is charged directly to the member's primary deposit. Losses
from $30,000 to $750,000 are pooled based on each member's share of the total losses in the
first layer of all of the members. Losses from $750,000 to $15,000,000 are pooled based on the
member's share of the total payroll of all the members. Losses from $15,000,000 to
$50,000,000 are transferred to the California JPIA's excess insurer. Loss Development
Reserves are separated by layer and allocated in the same manner as the losses with which they
are associated. The protection for each member is $50,000,000 per occurrence and
$50,000,000 annual aggregate.
Z:1
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.
See independent auditors' report.
- 45 -
M • e a ut6 _�1 0 Y.3
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
6. LIABILITY, PROPERTY AND. WORKERS' COMPENSATION PROTECTION
(CONTINUED):
a. Self -Insurance Programs of the Authority (Continued):
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 Insurance Authority has a limit of
$50,000,000 for the 3 -year period from July 1, 2005 through June 30, 2008.
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 years none of the above programs of protection have had
settlements or judgments that exceed pooled or- insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year,
with the exception of the environmental insurance coverage which has been decreased from
$120,000,000 to $50,000,000.
See independent auditors' report.
-46-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
Deficit Fund Balances
The following funds reported deficit fund balances at June 30, 2006:
Capital Improvement Capital Projects Fund $ (655,322)
ISTEA Special Revenue Fund (277,240)
Community Development Block Grant Special Revenue Fund (121,345)
The Capital Improvement Capital Projects Fund deficit will be funded with various- government
grants in future years.
The ISTEA Special Revenue Fund deficit will be reimbursed through revenues received from the
California Department of Transportation.
The Community Development Block Grant Special Revenue Fund deficit will be funded by future
year revenue allocations from Los Angeles County.
Expenditures Exceeded Appropriations
Expenditures for the year ended June 30, 2006 'exceeded appropriations of the following
funds/departments as follows:
Budget Actual Variance
General Fund:
General Government - City Attorney $ 90,000 $ 152,090 $ (62,090)
Public Safety - Building and Safety 718,950 746,845 (27,895)
Capital Projects Fund - Public Financing Authority 3 (3)
8. PENSION PLAN:
Plan Description:
The City contributes to the California Public Employees Retirement System (PERS);
* an and multiple -.employer public employee defined benefit pension plan. PERS provides 'retirement d
disability benefits, and death benefits to plan members and beneficiaries. PERS acts as a common
investment and administrative agent for participating public entities within the State of California.
As of July 1, 2005, the City was mandated by the State to participate in the risk pool. The risk pool
combines the assets and liabilities across employers of the same risk pool to provide a method to
spread the risk of uncertain gains and losses over a larger base .of members. The June 30, 2003
valuations were the first pooled valuations. Benefit provisions and all other requirements are
established by state statute and city ordinance. Copies of PERS' annual financial report may be
obtained from their executive office: 400 P Street, Sacramento, CA 95814.
See independent auditors' report.
-47-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
8. 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. Benefit provisions
and. all other requirements are established by state statute and city contract with employee
bargaining groups.
Annual Pension Cost:
Under GASB 27, the City reports an annual pension cost (APC) equal to the annual required
contribution (ARC) plus an adjustment for the cumulative difference between the APC and the
employer's actual plan contributions for the year. The cumulative difference is called the "net
pension obligation (NPO)". The ARC for the period July.1, 2005 to June 30, 2006 has been
determined by an actuarial valuation of the plans as of June 30, 2003. The contribution rate
indicated for the period is 11.148% of payroll for the Retirement Program. In order to.calculate the
dollar value of the ARC for inclusion in financial statements prepared as of June 30, 2006, this
contribution rate, as modified by any amendments for the year, would be multiplied by the payroll
of covered employees that were actually paid during the period July 1, 2005 to June 30, 2006. The
employer is responsible for determining the NPO and the APC.
A summary of principle assumptions and methods used to determine the ARC is shown below.
Valuation Date:
Actuarial Cost Method:
Amortization Method:
Average Remaining Pool:
Asset Valuation Method:
Actuarial Assumptions:
Investment Rate of Return
Projected Salary Increases
Inflation
Payroll Growth
Individual Salary Growth
See independent auditors' report.
Retirement Program
June 30, 2003
Entry Age Actuarial Cost Method
Level Percent of Payroll
15 years as of the Valuation Date
3 year Smoothed Market
7.75% (net of administrative expenses)
3.25% to 14.45% depending on Age,
Service and Type of Employment
3.00%
3.25%
A merit scale varying by duration of
employment coupled with an
assumed annual inflation compone . n.t
of 3.0% and an annual production
growth of 0.25%.
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
8. PENSION PLAN (CONTINUED):
Annual Pension Cost (Continued
The Schedule of Funding Progress below shows the recent history of the actuarial value of assets,
actuarial accrued liability, their relationship, and the relationship of the unfunded actuarial liability
to payroll.
Three -Year Trend Information For PERS
Fiscal Annual Pension Percentage of Net Pension
Year Cost (APC)- APC Contributed Obligation
6/30/2004 $ 134,451 100% $
6/30/2005 195,270 100%
6/30/2006 304,107 100%
Schedule of Funding Progress for PERS for the Risk Pool
9. CONTINGENCIES: �
The City is presently involved in other I 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.
See independent auditors' . report.
- 49 -
Entry Age
Normal
UAAL as a
Actuarial
Accrued
Actuarial
Unfunded
% of
Valuation
Liability
Value of
AAL
Funded
Covered
Covered
Date
(AAL)
Assets—
(UAAL)
Ratio
Payroll
Payroll
(A)
(B)
(A -B)
(B/A)
(C)
[(A-B/Cl
6/30/03
$2,596,966,545
$2,372,879,034
$ 224,087,511
91.4 %
$725,020,458
30,9 %
6/30/04
2,746,095,668
2,460,944,656
285,151,012
89.6%
743,691,970
.38.3 %
6/30/05
2,891,460,651
2,588,713,000
302,747,651
89.5 %
755,046,679
40.1 %
9. CONTINGENCIES: �
The City is presently involved in other I 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.
See independent auditors' . report.
- 49 -
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2006
10. CONSTRUCTION COMMITMENTS:
The following material construction commitments existed at June 30, 2006:
Project Name
Grand Avenue Betterment/Beautification -
WCL to ECL
Traffic Signals:
Pathfinder @ Peaceful Hills
Grand @ Cahill
Grand @ Cleghorn
Left Turn:
Diamond Bar Boulevard @ Cold Spring
Diamond Bar Boulevard @ Highland Valley
TS Mod:
Diamond Bar Boulevard/Mountain Laurel
Diamond Bar Boulevard/Grand
Neighborhood Traffic Mgt Mitigations
11. OPERATING LEASES:
Expenditures as of Remaining
June 30, 2006 Commitments,
1,963,030 $ 87,055
249,059 .34,841
- 172,714
187,030
97,244 45,740
5,934 275,850
2,025 73,132
6,500 187,145
- 146,144
$ 2,323,792 $ 1,209,651
The City leases building and office facilities under noncancelable operating leases. The total costs
for such leases were $254,457 for the year ended June 30, 2006. The future minimum lease
payments for the lease of building and office facilities are as follows:
Year Ending
June 30,
2007
256,880
2008
261,727
2009
264,151
2010
268,997
2011
179,332
Total
$ 1,231,087
12. RESTATEMENT OF NET ASSETS:
The balances of net assets at July 1, 2005 of the governmental activities and the Self -Insurance
Internal Service Fund were decreased by $244,565 to $45,887,235 and $1,468,053, respectively, to
adjust the balance of the due to other governments liability.
See independent auditors' report.
-50-
REQUIRED SUPPLEMENTARY INFORMATION
-51-
THIS PAGE LEFT BLANK INTENTIONALLY
-52-
BUDGETARY COMPARISON SCHEDULES
M►1 . a M
The General Fund 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.
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
restricted by law or administrative action for a specified purpose.
Proposition A Transit Fund - This fund is used to account for the receipt and expenditure of the City's
share of the 1/z cent sales tax levied in Los Angeles County for local transit purposes. -
-53-
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
For the year ended June 30, 2006
See independent auditors' report and note to required supplementary information.
Variance with
-
-
Final Budget-
Budgeted Amounts
9nedivo
Original
Final
Actual
REVENUES:
Taxes
$ 8,606,700
$ 8,561J00
$ 9,508757
$ 947,057
Intergovernmental revenue
3,209'905
4,221,645
4,440,031
227,386
Fines and forfeitures
746'000
706.000
589.922
(116'078)
Licenses, permits and fees
2'174,000
2'375'260
2,389'149
13,889
Investment income
350.000
550'000
985'531
435,531
Other revenues
408200
647,200
772,641
125,441
TOTALIOBVENDE8
15,499,705
17,061,805
19,695,031
1,633,226
--------`--'
Current:
General government:
City Council
188,500
188,500
164,024
24,476
CityMonoguc/C%cdc
934,850
063,350
83 *1J17
131,633
City Attorney
0O'OOO
qO'0OO
3
l�,0PO
(62'090)
Finance
391'050
400.550
310/458
81'092
Human resources
224'058
226,950
160'189
57'770
Information systems
620,015
713,304
698.061
15,253
General government
.863,360
955`126
860,888
04,238
Public information
487000
486,450
356,242
130208
Subtotal general government
3808735
4,024,239
3551659
472,580
Public safety:
Law enforcement
4J82,300
4,822,300
4,538,014
283,386
Fire protection
7,500
7,500
7,350
141
Animal control
94`000
94.000
80.307
4'603
Emergency preparedness
68.550
73'800
13,573
60'227
Building and safety
556,280
719,950746,845(27,895)
Subtotal public safety
5508630
5,716,5505395998
320,552
Highways and streets
2,139,715
2,949,957
2
410 ,117
Parks, recreation and culture
2,592,640
2804767
2,613,834
190933
Community development
1,955,25020892,261,816
726,433
TOTAL EXPENDITURES
16804960
18,383,662
16,263,047
2,120,615_
EXCESS OFREVENUES OVER
(DNJBI8 EXPENDITURES
3,753,841
OTHER FINANCING SOURCES (J383):
Transfers in
1,376J00
1,391,700
I'224J83
(166'017)
Transfers out
648,093
TOTAL OTHER
FINANCING SOURCES (USES)
954
481176
NET CHANGE INFUND BALANCE
(1,349,255)
8,757,048
477,979
4L235,0I7
FUND BALANCE ' BEGINNING UFYEAR
25,935,639
25,935,639
25,935,639
-
FUND BALANCE - END OFYEAR
See independent auditors' report and note to required supplementary information.
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A TRANSIT SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report and note to required supplementary information.
-55-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 866,300
$ 966,300
$ 959,518
$ (6,782)
Charges for services
550,000
550,000
659,218
109,218
Investment income
22,000
22,000
35,135
13,135
TOTAL REVENUES
1,438,300
1,538,300
1,653,871
115,571
EXPENDITURES:
Current:
Highway and streets
1,202,130
1,650,918
1,634,577
16,341
TOTAL EXPENDITURES
1,202,130
1,650,918
1,634,577
16,341
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
236,170
(112,618)
19,294.
131,912
FUND BALANCE - BEGINNING OF YEAR'
918,936
918,936
918,936
-
FUND BALANCE - END OF YEAR
$ 11155,106
$ 806,318
$ 938,230
$ 131,912
See independent auditors' report and note to required supplementary information.
-55-
I"MKe) 41 "D - "T -kyj We "D M.MI
1 1111111 ;cii iiiii �i � iil� ii i i� � lr� �l'�: p� ij� 1111� ��
June 30, 2006
1. BUDGETS AND BUDGETARY ACCOUNTING:
The City adheres to the following general procedures in establishing its annual budget, which is
reflected in the accompanyingt:-
basic financial statements:
a. The annual budget adopted by the City Council provides for the general operation of the City.
It includes proposed expenditures and the means of financing them. Budgeted appropriations
lapse at the end of the year.
b. 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 fund level.
c. Annual budgets are adopted for the General and certain Special Revenue Funds on a basis
substantially consistent with accounting principles generally accepted in the United States of
America. Accordingly, actual revenues and expenditures can be compared with related
budgeted amounts without any significant reconciling items.
d. 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, 2006, supplemental appropriations in the amount of $4,969,353 were made.
e. Formal budgetary integration 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
C)
year end lapse, and then are added to the following year's budgeted appropriations. However,
t) C�
encumbrances at year-end are reported as reservations of fund balance.
See independent auditors' report.
-56-
SUPPLEMENTARY INFORMATION
-57-
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2006
ASSETS
Cash and investments
Cash and investments with fiscal agents
Accounts receivable
Due from other governments
Notes receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued payroll
Due to other funds
Deferred revenue
Advances from other governments
TOTAL LIABILITIES
FUND BALANCES:
Reserved for:
Encumbrances
Debt service
Unreserved reported in:
Special revenue funds
Capital projects funds
TOTAL FUND BALANCES
TOTAL LIABILITIES
AND FUND BALANCES
$ 135,259 $ - $ - $ 135,259
3,729 - - 3,729
355,371 - - 355,371
520,939 - - 520,939
137,595 - - 137,595
1,152,893 - - 1,152,893
30,758 - - 30,758
- 287,020 - 287,020
4,834,723 - - 4,834,723
4,865,481 287,020 - 5,152,501
$ 6,018,374 $ 287,020 $ - $ 6,305,394
See independent auditors' report.
-58-
Debt
Capital
Service Fund
Projects Fund
Total
Special
Public
Public
Other
Revenue
Financing
Financing
Governmental
Funds
Authority
Authority
Funds
$ 5,096,866
$ -
$ -
$ 5,096,866
-
287,020
-
287,020
49,989
-
-
49,989
733,924
-
-
733,924
137,595
-
-
137,595
$ 6,018,374
$ 287,020
$ -
$ 6,305,394
$ 135,259 $ - $ - $ 135,259
3,729 - - 3,729
355,371 - - 355,371
520,939 - - 520,939
137,595 - - 137,595
1,152,893 - - 1,152,893
30,758 - - 30,758
- 287,020 - 287,020
4,834,723 - - 4,834,723
4,865,481 287,020 - 5,152,501
$ 6,018,374 $ 287,020 $ - $ 6,305,394
See independent auditors' report.
-58-
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANCES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2006
See independent auditors' report.
'Moon
Debt
Capital
Service Fund
Projects Fund
Total
Special
Public
Public
Other
Revenue
Financing
Financing
Governmental
Funds
Authority
Authority
Funds
REVENUES:
Special assessments
$ 504,908
$ -
$ -
$ 504,908
Intergovernmental revenue
3,170,714
-
-
3,170,714
Charges for services
211,096
Investment income
220,245
5,444
3,065
228,754
Other revenues
19,575
-
-
19,575
TOTAL REVENUES
4,126,538
5,444
3,065
4,135,047
EXPENDITURES:
Current:
Public safety
8,261
-
-
8,261
Highways and streets
695,180
-
-
695,180
Community development
486,723
-
-
486,723
Debt service:
Principal
-
235,000
235,000
Interest and fiscal charges
-
404,072
3
404,075
TOTAL EXPENDITURES
1,190,164
639,072
3
1,829,239
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
2,936,374
(633,628)
3,062
2,305,808
OTHER FINANCING SOURCES (USES):
Transfers in
-
646,222
-
646,222
Transfers out
(3,400,079)
-
(155,092)
(3,555,171)
TOTAL OTHER FINANCING
SOURCES (USES)
(3,400,079)
646,222
(155,092)
(2,908,949)
NET CHANGE IN FUND BALANCES
(463,705)
12,594
(152,030)
(603,141)
FUND BALANCES - BEGINNING OF YEAR
5,329,186
274,426
152,030
5,755,642
FUND BALANCES - END OF YEAR
$ 4,865,481
$ 287,020
$ -
$ 5,152,501
See independent auditors' report.
'Moon
OTHER SPECIAL REVENUE FUNDS
The following Special Revenue Funds have been classified as other governmental funds in the
accompanying financial statements:
State Gas Tax Fund - This fund is used 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 C Transit Fund - This fund is used 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.
The Intermodal Surface Transportation Enhancement Act (TQrM A )Fund - This fund is used to account
for transport related receipts and expenditures.
Integrated Waste Management Fund - This fund is used to account for revenues and expenditures
related to the City's waste reduction efforts as related to AB939.
Traffic Congestion Relief Fund - This fund * is used to account for the Governor's transportation
congestion policy program revenue received for the repair and construction of streets.
Air Quality Improvement Fund - This fund is used 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 T,,qw Enforcement Equipment Program (CLEEP) Fund - This fund is used 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 This fund is used to account for the development and
enhancement of the City's parks.
Communis Development Block Grant (CDBG) Fund - This fund is used to account for the City's
allotment of CDBG funds from the federal government via the County of Los Angeles Community
0 Im
Development Commission. These funds are used to fund community development programs and
projects benefiting, low and moderate income citizens.
C)
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
Citizens Option for Public Safety (COPS) Fund - This fund is used to account for COPS grants
received from both the state and federal government. The purpose of these funds is to enhance the
City's public safety budget and to fund special public safety related projects.
Asset Seizure Fund - This fundis used 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 - This fund is used to account of 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.
CITY OF DIAMOND BAR
COMBENIING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2006
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$ - $ - $ -
Proposition
Integrated
Traffic
1,922 -
State
C
Waste
Congestion
- - 277,240
Gas Tax
Transit
ISTEA Management
Relief
ASSETS
- - 554,480
10,140 -
FUND BALANCES (DEFICITS):
Cash and investments
$ 289,038
$ 1,356,317
$ - $ 447,681
$ 166,393
Accounts receivable
-
-
- 49,989
-
Due from other governments
101,775
-
277,240 -
75,068
Notes receivable
-
-
- -
-
TOTAL ASSETS
$ 390,813
$ 1,356,317
$ 277,240 $ 497,670
$ 241,461
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$ - $ - $ -
$ 8,218 $ -
Accrued payroll
- - -
1,922 -
Due to other funds
- - 277,240
- -
Deferred revenue
- - 277,240
- -
Advances from other governments
- - -
- -
TOTAL LIABILITIES
- - 554,480
10,140 -
FUND BALANCES (DEFICITS):
Reserved for:
Encumbrances
- - -
- -
Unreserved
390,813 1,356,317 (277,240)
487,530 241,461
TOTAL FUND
BALANCES (DEFICITS)
390,813 1,356,317 (277,240)
487,530 241,461
TOTAL LIABILITIES AND
FUND BALANCES
$ 390,813 $ 1,356,317 $ 277,240
$ 497,670 $ 241,461
See independent auditors' report.
-62-
$ 114,265 $ 75,088 $ 1,947,992 $ 259,017 $ 174,611 $ 331,644 $ 352,256 $ 6,018,374
$ 6,760
$ - $ -
$ 43,214 $ -
Total
Air
Park and
Landscape
Other
Quality
Facility
Asset Maintenance
Special
Improvement
CLEEP Development CDBG COPS
Seizure District
Revenue Funds
-
$ 95,516
$ 75,088 $ 1,825,715 $ - $ 174,611
$ 331,644 $ 334,863
$ 5,096,866
-
- - _ -
- -
49,989
18,749
- 122,277 121,422 -
- 17,393
733,924
-
- - 137,595 -
- -
137,595
$ 114,265 $ 75,088 $ 1,947,992 $ 259,017 $ 174,611 $ 331,644 $ 352,256 $ 6,018,374
$ 6,760
$ - $ -
$ 43,214 $ -
$ 456
$ 76,611 $
135,259
538
- -
- -
-
1,269
3,729
78,131 -
-
-
355,371
-
- 122,277
121,422 -
-
-
520,939
-
- -
137,595 -
-
-
137,595
7,298
- 122,277
380,362 -
456
77,880
1,152,893
24,209
- -
419 -
-
6,130
30,758
82,758
75,088 1,825,715
(121,764) 174,611
331,188
268,246
4,834,723
106,967
75,088 1,825,715
(121,345) 174,611
331,188
274,376
4,865,481
$ 114,265 $ 75,088 $ 1,947,992 $ 259,017 $ 174,611 $ 331,644 $ 352,256 $ 6,018,374
-63-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2006
REVENUES:
Special assessments
Intergovernmental revenue
Charges for services
Investment income
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
Highways and streets
Community development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER
FINANCING USES
NET CHANGE IN
FUND BALANCES
FUND BALANCES (DEFICITS) -
BEGINNING OF YEAR
FUND BALANCES (DEFICITS) -
END OF YEAR
See independent auditors' report.
196,804
196,804
1,101,342 872,835 .282,630 76,440 270,986
(1,2951827) (690,826) - (152,686) (29,525)
(1,295,827) (690,826) - (152,686) (29,525)
(194,485) 182,009 282,630 (76,246) 241,461
585,298 1,174,308 (559,870) 563,776
$ 390,813 $1,356,317 $ (277,240) $ 487,530 $ 241,461
-64-
Proposition
Integrated
Traffic
State
C
Waste
Congestion
Gas Tax
—Transit
ISTEA -Management
Relief
1,078,352
825,189
282,630 42,875
267,292
-
- .211,096
-
22,990
47,646
19,273
3,694
1,101,342
872,835
282,630 273,244
270,986
196,804
196,804
1,101,342 872,835 .282,630 76,440 270,986
(1,2951827) (690,826) - (152,686) (29,525)
(1,295,827) (690,826) - (152,686) (29,525)
(194,485) 182,009 282,630 (76,246) 241,461
585,298 1,174,308 (559,870) 563,776
$ 390,813 $1,356,317 $ (277,240) $ 487,530 $ 241,461
-64-
Total
Air
Park and
Landscape
Other
Quality
Facility
Asset
Maintenance
Special
Improvement
CLEEP
Development
CDBG
COPS
Seizure
District
Revenue Funds
$
$ _
$ _
$ _
$ -
$ -
$ 504,908
$ 504,908
71,314
-
29,067
460,560
113,435
-
-
3,170,714
-
-
_
_
-
211,096
5,397
2,701
70,894
9,020
11,933
26,697
220,245
19,575
=
19,575
L76,711
2,701
119,536
460,560
122,455
11,933
531,605
4,126,538
7,671
590
-
8,261
-
_
_
-
_
-
695,180
695,180
89,664
-
-
200,255
-
-
-
486,723
89,664
-
-
200,255
7,671
590
695,180
1;190,164
(12,953)
2,701
119,536
260,305
114,784
11,343
(163,575)
2,936,374
.., -
-
(194,121)
(248,728)
(129,307)
-
(659,059)
(3,400,079)
-
-
(194,121)
(248,728)
(129,307)
-
(659,059)
(3,400,079)
(12,953)
2,701
(74,585)
11,577
(14,523)
11,343
(822,634)
(463,705)
119,920
72,387
1,900,300
(132,922)
189,134
319,845
1,097,010
5,329,186
$ 106,967
$ 75,088
$ 1,825,715
$ (121,345)
$ 174,611
$ 331,188
$ 274,376
$ 4,865,481
t�
a
-65-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE GAS TAX SPECIAL REVENUE FUND
For the year ended June 30, 2006
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-66-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 1,040,670
$ 1,040,670.
$ 1,078,352
$ 37,682
7,000
7,000
22,990
15,990
1,047,670
1,047,670
1,101,342
53,672
(1,202,400)
(1,202,400)
(1,295,827)
(93,427)
(1,202,400)
(1,202,400)
(1,295,827)
(93,427)
(154,730)
(154,730)
(194,485)
(39,755)
585,298
585,298
585,298
-
$ 430,568
$ 430,568
$ 390,813
$ (39,755)
See independent auditors' report.
-66-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION c TRANSIT SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-67-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 718,540
$ 718,540
$ 825,189
$ 106,649
Investment income
18,000
18,000
47,646
29,646
TOTAL REVENUES
736,540
736,540
872,835
136,295
OTHER FINANCING USES:
Transfers out
(719,000)
(1,019,000)
(690,826)
328,174
TOTAL OTHER FINANCING USES
(719,000)
(1,019,000)
(690,826)
328,174
NET CHANGE IN FUND BALANCE
17,540
(282,460)
182,009
464,469
FUND BALANCE - BEGINNING OF YEAR
1,174,308
1,174,308
1,174,308
-
FUND BALANCE - END OF YEAR
$ 1,191,848
$ 891,848
$ 1,356,317
$ 464,469
See independent auditors' report.
-67-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ISTEA SPECIAL REVENUE FUND
For the year ended June 30, 2006
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue $ 2,535,845 $ 2,535,845
282,630
$ (2,253,215)
TOTAL REVENUES 2,535,845 2,535,845
282,630
(2,253,215)
OTHER FINANCING USES:
Transfers out (2,535,845) (2,535,845)
2,535,845
TOTAL OTHER FINANCING USES (2,535,845) (2,535,845)
-
2,535,845
NET CHANGE IN FUND BALANCE
282,630
282,630
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR (559,870) (559,870)
(559,870)
FUND BALANCE (DEFICIT) - END OF YEAR $ (559,870) $ (559,870) $
(277,240)
$ 282,630
See independent auditors' report.
-68-
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
INTEGRATED WASTE MANAGEMENT SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
For the year ended June 30, 2006
(40,850) (59,026)
76,440 135,466
(185,000)
(185,000)
(152,686)
Variance with
(185,000)
(185,000)
(152,686)
Final Budget
Budgeted
Amounts
(76,246)
Positive
Original
Final
Actual
(Negative)
$ 170,000
$ 170,000
$ 42,875
$ (127,125)
200,000
200,000
211,096
11,096
12,000
12,000
19,273
7,273
382,000
382,000
273,244
(108,756)
422,850
441,026
196,804
244,222
422,850
441,026
196,804
244,222
(40,850) (59,026)
76,440 135,466
(185,000)
(185,000)
(152,686)
32,314
(185,000)
(185,000)
(152,686)
32,314
(225,850)
(244,026)
(76,246)
167,780
563,776
563,776
563,776
$ 337,926
$ - 319,750
$ 487,530
$ 167,780
See independent auditors' report.
-69-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-70-
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ $ 250,000
$ 267,292
$ 17,292
Investment income
-
3,694
3,694
TOTAL REVENUES
250,000
270,986
20,986
OTHER FINANCING USES:
Transfers out
(250,000)
(29,525)
220,475
NET CHANGE IN FUND BALANCE
241,461
241,461
FUND BALANCE - BEGINNING OF YEAR
-
-
FUND BALANCE - END OF YEAR
$ 241,461
$ 241,461_
See independent auditors' report.
-70-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
I : • 117L 1900. .
FUND BALANCE - END OF YEAR
See independent auditors' report.
For the year ended June 30, 2006
-71-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 65,000
$ 65,000
$ 71,314
$ 6,314
4,000
4,000
5,397
1,397
69,000
69,000
76,711
7,711
168,690
172,347
89,664
82,683
168,690
172,347
89,664
82,683
(99,690)
(103,347)
(12,953)
90,394
(7,800)
(7,800)
-
7,800
(7,800)
(7,800)
-
7,800
(107,490)
(111,147)
(12,953)
98,194
119,920
119,920
119,920
-
$ 12,430
$ 8,773
$ 106,967
$ 98,194
-71-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CLEEP SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-72-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Investment income
$
$
$ 2,701
$ 2,701
TOTAL REVENUES
2,701
2,701_
EXPENDITURES:
Current:
Public safety
25,000
25,000
25,000
TOTAL EXPENDITURES
25,000
25,000
25,000
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(25,000)
(25,000)
2,701
27,701
FUND BALANCE - BEGINNING OF YEAR
72,387
72,387
72,387
-
FUND BALANCE - END OF YEAR
$ 47,387
$ 47,387
$ 75,088
27,701
See independent auditors' report.
-72-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PARK AND FACILITY DEVELOPMENT SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-73-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 863,483
$ 863,483
$ 29,067
$ (834,416)
Investment income,
37,000
37,000
70,894
33,894
Other revenues
-
19,575
19,575
TOTAL REVENUES
900,483
900,483
119,536
(780,947)
OTHER FINANCING USES:
Transfers out
(1,883,774)
(1,883,774)
(194,121)
1,689,653
TOTAL OTHER FINANCING USES
(1,883,774)
(1,883,774)
(194,121)
1,689,653
NET CHANGE IN FUND BALANCE
(983,291)
(983,291)
(74,585)
908,706
FUND BALANCE - BEGINNING OF YEAR
1,900,300
1,900,300.
1,900,300
-
FUND BALANCE - END OF YEAR
$ 917,009
$ 917,009
$ 1,825,715
$ 908,706
See independent auditors' report.
-73-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CDBG SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-74-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 753,041
$ 922,034
460,560
$ (461,474)
TOTAL REVENUES
753,041
922,034
460,560
(461,474)
EXPENDITURES:
Current:
Community development
232,205
386,201
200,255
185,946
TOTALEXPENDITURES
232,205
386,201
200,255
185,946
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
520,836
535,833
260,305
(275,528)
OTHER FINANCING USES:
Transfers out
(380,915)
(395,915)
(248,728)
147,187
TOTAL OTHERFINANCING USES
(380,915)
(395,915)
(248,728)
147,187_
NET CHANGE IN FUND BALANCE
139,921
139,918
11,577
(128,341)
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
(132,922)
(132,922)
(132,922)
FUND BALANCE (DEFICIT) - END OF YEAR
6,999
6,996
$ (121,345)
(128,341)
See independent auditors' report.
-74-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COPS SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-75-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
. Intergovernmental revenue
$ 113,000
$ 113,000
$ 113,435
$ 435
Investment income
4,000
4,000
9,020
5,020
TOTAL REVENUES
117,000
117,000
122,455
5,455
EXPENDITURES:
Current:
Public safety
36,900
36,900
7,671
29,229
TOTAL EXPENDITURES
36,900
36,900
7,671
29,229
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
80,100
80,100
114,784
34,684
OTHER FINANCING USES:
Transfers out
(182,700)
(192,700)
(129,307)
53,393
TOTAL OTHER FINANCING USES
(182,700)
(182,700)
(129,307)
53,393
NET CHANGE IN FUND BALANCE
(102,600)
(102,600)
(14,523)
88,077
FUND BALANCE - BEGINNING OF I YEAR
189,134
189,134
189,134.
-
FUND BALANCE - END OF YEAR
$ 86,534
$ 86,534
$ 174,611
$ 88,077
See independent auditors' report.
-75-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ASSET SEIZURE SPECIAL REVENUE FUND
For the year ended June 30, 2006
See independent auditors' report.
-76-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
—
Investment income
$ 7,000
$ 7,000
$ 11,933
$ 4,933
TOTAL REVENUES
7,000
7,000
11,933
4,933
EXPENDITURES:
Current:
Public safety
25,000
25,000
590
24,410
TOTAL EXPENDITURES
25,000
25,000
590
24,410
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(18,000)
(18,000)
11,343
29,343
FUND BALANCE - BEGINNING OF YEAR
319,845
319,845
319,845
-
FUND BALANCE - END OF YEAR
$ 301,845
$ 301,845
$ 331,188
$ 29,343
See independent auditors' report.
-76-
CITY OF DIAMOND BAR
. SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT SPECIAL REVENUE FUND
For the year ended June 30, 2006
EXPENDITURES:
Current: 103,404
Highways and streets 783,502 798,584 695,180
TOTAL EXPENDITURES 783,502 798,584 695,180 103,404
EXCESS OF REVENUES OVER
Variance with
(UNDER) EXPENDITURES
(215,775)
Final Budget
(163,575)
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Special assessments
$ 551,727 $ 551,727
$ 504,908
$ (46,819)
Investment income
16,000 16,000
26,697
10,697
TOTAL REVENUES
567,727 567,727
531,605
(36,122)
EXPENDITURES:
Current: 103,404
Highways and streets 783,502 798,584 695,180
TOTAL EXPENDITURES 783,502 798,584 695,180 103,404
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(215,775)
(230,957)
(163,575)
67,292
OTHER FINANCING USES:
Transfers out
(80,400)
(80,400)
(659,059)
(578,659)
TOTAL OTHER FINANCING USES
(80,400)
(80,400)
(659,059)
(578,659)
NET CHANGE IN FUND BALANCE
(296,175)
(311,257)
(822,634)
(511,377)
FUND BALANCE - BEGINNING OF YEAR
1,097,010
1,097,010
1,097,010
FUND BALANCE - END OF YEAR
$ 800,835
$ 785,753
274,376
$ (511,377)
See independent auditors' report.
-77-
THIS PAGE LEFT BLANK INTENTIONALLY
-78-
OTHER 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 long-term liabilities of the City. The following has been classified as an
other governmental fund in the accompanying financial statements.
Public Financing AuthorityFund- This fund is used to account for the: payment of principal and
interest on the Lease Revenue Bonds.
-79-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC FINANCING AUTHORITY DEBT SERVICE FUND
For the year ended June 30, 2006
See independent auditors' report.
-80-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Investment income
$ 5,000
$ 5,000
$ 5,444
$ 444
EXPENDITURES:
Debt service:
Principal
235,000
235,000
235,000
-
Interest and fiscal charges
474,500
474,500
404,072
70,428_
TOTAL EXPENDITURES
709,500
709,500
639,072
70,428
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(704,500)
(704,500)
(633,628)
70,872
OTHER FINANCING SOURCES (USES):
Transfers in
708,200
708,200
646,222
(61,978)
Transfers out
(278,126)
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
430,074
708,200
646,222
(61,978)
NET CHANGE IN FUND BALANCE
(274,426)
3,700
12,594
8,894
FUND BALANCE - BEGINNING OF YEAR
274,426
274,426
274,426
-
FUND BALANCE - END OF YEAR .
- :
$ 278,126
$ 287,020
$ 8,894
See independent auditors' report.
-80-
OTHER AND 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).
Public Financing Authority Fund - This fund is used to account for the financing of public
improvements and other capital purchases for the City.
Capitprovement Fund - This fund is used to account for the costs of constructina, 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.
-81-
CITY OF DIAMOND BAR
SCHEDULE oFaEvENuEs, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC FINANCING AUTHORITY CAPITAL PROJECTS FUND
For the year ended June 30, 2006
See independent auditors' report.
- 82 -
Variance with
Final Budget
Budgeted Amounts
Positive
Original
— Final
Actual
(Negative)
REVENUES:
Investment income
$ 6,000
$ 5,000
3,065
(1,935)
TOTAL REVENUES
6,000
5,000
3,065
(1,935)
EXPENDITURES:
Debt service:
Interest and fiscal charges
3
(3)
TOTAL EXPENDITURES
-
-
3
(3)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
6,000
5,000
3,062
(1,938)
OTHER FINANCING USES:
Transfers out
(158,030)
(155,092)
(155,092)
TOTAL OTHER FINANCING USES
(158,030)
(155,092)
(155,092)
NET CHANGE IN FUND BALANCE
(152,030)
5,000
(152,030)
(157,030)
FUND BALANCE - BEGINNING OF YEAR
152,030
152,030
152,030
FUND BALANCE - END OF YEAR
$ -
$ 157,030
$ -
$ (157,030)
See independent auditors' report.
- 82 -
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
For the year ended June 30, 2006
REVENUES:
{ Intergovernmental revenue
Licenses, permits and fees
Investment income
TOTAL REVENUES
EXPENDITURES:
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
TOTAL OTHER FINANCING SOURCES
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors` report.
(176,271) (176,271) (176,271) -
$ (176,271) $ (318,884) $ (655,322) $ (336,438)
-83-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 1,322,439
$ 730,106
$ 241,878
$ (488,228)
250,000
250,000
-
(250,000)
140,000
140,000
1,150
(138,850)
1,712,439
1,120,106
243,028
(877,078)
8,614,476
10,563,098
5,320,597
5,242,501
8,614,476
10,563,098
5,320,597
5,242,501
(6,902,037)
(9,442,992)
(5,077,569)
4,365,423
6,902,037
9,300,379
4,598,518
(4,701,861)
6,902,037
9,300,379
4,598,518
(4,701,861)
-
(142,613)
(479,051)
(336,438)
(176,271) (176,271) (176,271) -
$ (176,271) $ (318,884) $ (655,322) $ (336,438)
-83-
THIS PAGE LEFT (BLANK. INTENTIONALLY
-84-
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 - This fund is used to account for the payments made for the City's general
liability insurance premiums
Equipment Replacement Fund - This fund is used to account for the replacement of the City's rolling
equipment stock or vehicles.
_Computer Replacement Fund - This fund is used to account for the replacement and/or enhancement of
the City's computer-related equipment.
-85-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30_2006
See independent auditors' report.
-86-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
ASSETS
CURRENT ASSETS:
Cash and investments
$ 1,571,831
$ 169,743
$ 91,724
$ 1,833,298
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
-
177,196
11,417
188,613
Less accumulated depreciation
-
(91,817)
(10,430)
(102,247)
TOTAL NONCURRENT ASSETS
-
85,379
987
86,366
TOTAL ASSETS
1,571,831
255,122
92,711
1,919,664
LIABILITIES
CURRENT LIABILITIES:
Due to other governments
361,356
-
-
361,356
NET ASSETS
Invested in capital assets, net of related debt
-
85,379
987
86,366
Unrestricted
1,210,475
169,743
91,724
1,471,942
TOTAL NET ASSETS
$ 1,210,475
$ 255,122
$ 92,711
$ 1,558,308
See independent auditors' report.
-86-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2006
See independent auditors' report.
-87-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
OPERATING EXPENSES:
insurance premiums
$ 488,019
$ -
$
$ 498,019
Depreciation
- -
17,928
2,213
20,141
TOTAL OPERATING EXPENSES
488,019
17,928
2,213
508,160_
OPERATING LOSS
(488,019)
(17,928)
(2,213)
(508,160)
NoNOPERATING REVENUES (EXPENSES):
Loss on disposal of capital asset
-
-
(261)
(261)
Investment income
50,441
6,256
1,186
57,883
TOTAL NONOPERATING
REVENUES (EXPENSES)
50,441
6,256
925
57,622
LOSS BEFORE TRANSFERS
(437,578)
(11,672)
(1,288)
(450,538)
TRANSFERS IN
180,000
25,338
59,100
264,438
CHANGE IN NET ASSETS
(257,578).
13,666
57,812
(186,100)
TOTAL NET ASSETS -
BEGINNING OF YEAR, AS RESTATED
1,468,053
241,456
34,899
1,744,408
TOTAL NET ASSETS - END OF YEAR
$ 1,210,475
$ 255,122
92,711
$ 1,558,308
See independent auditors' report.
-87-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF CASH FLOWS
, INTERNAL SERVICE FUNDS
For the year ended June 30, 2006
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 66,837 (60,785) 60,286 66,338
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 1,504,994 230,528 31,438 1,766,960
CASH AND CASH EQUIVALENTS -
END OF YEAR $ 1,571,831 $ 169,743 $ 91,724 $ 1,833,298
RECONCILIATION OF OPERATING LOSS TO
Self-
Equipment
Computer.
Insurance
Replacement
Replacement
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
used by operating activities:
Insurance deposits
$ 48,148
$ -
$ _
$ 48,148
Insurance payments
(211,752)
-
-
(211,752)
NET CASH USED
- 276,267
TOTAL ADJUSTMENTS
324,415 17,928
2,213 344,556
BY OPERATING ACTIVITIES
(163,604)
-
-
(163,604)
CASH FLOWS FROM NONCAPITAL
See independent auditors' report.
FINANCING ACTIVITIES:
Transfers from other funds
180,000
25,338
59,100
264,438
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
180,000
25,338
59,100
264,438
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets
-
(92,379)
-
(92,379)
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
-
(92,379)
_
(92,379)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
50,441
6,256
1,186
57,883
NET CASH PROVIDED BY
INVESTING ACTIVITIES
50,441
6,256
1,186
57,883
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 66,837 (60,785) 60,286 66,338
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 1,504,994 230,528 31,438 1,766,960
CASH AND CASH EQUIVALENTS -
END OF YEAR $ 1,571,831 $ 169,743 $ 91,724 $ 1,833,298
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
$ (488,019) $ (17,928) $
(2,213) $ (508,160)
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation
- 17,928
2,213 20,141
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivables
48,148 -
- 48.148
Increase (decrease) in due to other governments
276,267 -
- 276,267
TOTAL ADJUSTMENTS
324,415 17,928
2,213 344,556
NET CASH USED BY
OPERATING ACTIVITIES
$ (163,604) $ - $
- $ (163.604)
See independent auditors' report.
-88-
i
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2006
This part of the City of Diamond Bar's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the government's overall financial
health.
Pages
Contents:
Financial Trends - These schedules contain trend information to help the
reader understand how the City's financial performance and well-being have 90-93
changed over time.
Revenue Capacity - These schedules contain information to help the reader 94 -97
assess the City's most significant local revenue source, the property tax.
Debt Capacity - These schedules present information to help the reader assess
the affordability of the City's current.levels of outstanding debt and the City's 98-99
ability to issue additional debt in the future.
Demographic and Economic Information - These schedules offer demographic
and economic indicators to help the reader understand the environment within 100-101
which the City's financial activities take place.
OReratigg Information - These schedules contain service and infrastructure
data to help the reader understand how the information in the City's financial 102-103
report relates to the services the City provides and the activities it performs.
-89-
Governmental activities:
Invested in capital assets, net of related debt
Restricted for:
Debt service
Capital projects
Specific programs
Unrestricted
Total governmental activities net assets
City of Diamond Bar
Net Assets by Component
Last Four Fiscal Years
(accrual basis of accounting)
* The City implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City Finance Department
-90-
Fiscal Year Ended June 30,
2003
2004
2005
2006
$ 8,237,553
$ 10,844,807
$ 10,692,694
$ 14,593,935
-
-
245,763
243,697
5,988,178
241,767
3,775,552
3,323,474
-
-
1,398,057
1,296,806
26,205,849
31,231,827
29,775,169
29,461,178
$ '40,431,580
$ 42,318,401
$ 45,887,235
$ 48,919,090
* The City implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City Finance Department
-90-
City of Diamond Bar
Changes in Net Assets
Last Four Fiscal Years
(accrual basis ofaccounting)
�
Fiscal Year Ended June 30,
2003
2004
2005
2006
E^e~~~~~'
Governmental activities:
$3,315,082
$ 3,713,530 $
3,997,319 $
4,203,123Guoeral
g»vom«neui
4,988/440
4,975,823
4/969.183
5,418,005
Public safety
l�O6�7 6Q
--
l�65JI7
4�21)l4
p��
524�68
-
Blgbvvoyyuod»�eu�
337O1l6
`4
5,724,606`
lO�O025
.
27547l8
' '
Community development
�
2,309,150
2,5QO'4�
3Dl4Q87
^ `
3�737�?l
Puzba o:uroudoou�dcoluo�3
`
�35752
l7l223
z/o
423320
Interest and fiscal charges
15525317
18431373
zoz
�/ '" l8O5
Total expenses
Program revenues:
Governmental activities:
Charges for services:
74,805
225,656
496,925
707,272
General Government
813,617
733`902
I,150,264
1.277'170
Public safety
5l7g30
�20,33O
1,328,637
1.555^093
EGghvvuyaand a�n�»
' O8
y330
D93'08i
7,888
16.841
Community development
' �5
Q�27
6lO.772
ll�700D
. ,
l26O84g
. .
Podc.o�roadouund«nlmn:
4'�9O'722
�'068/W6
4,040`785
5.281`308
~pero6uQ8zuu�and couuih»b»oa
1''g5l0
26/94
'
1,150
Capital grants and contributions
O43 l41
/�o�o __
Dl7O5D7
^~ -- O 83
T��pm�amomcouoo
General revenues:
Taxes:
26V2J23
�682'87%
3,l5�J23
6�60�553
Property taxes
'
578.G80
62Q�64
.
7l7879
'
718,8O0
Tzun�untoccupancy u�en
%965,%g2
3,167.901
2.645.006
2.964'877
taxes
'
.
863,245
084,472
Property taxes bzlieu »fsales taxes
_
829.242
012,531
941,310
996`567
Franchise taxes
S37O3Q7
�7l6,1�4
'
4,386'OOO
413.230
Uune�uted��otorv��o)uio�«»
�
` '
367,638
367,464
�l3247
.
4l6423
Property transfer tax
34.989
95.077
35,283
35.522
0dh«ctaxen
43g.455
182.069
532.001
1,051.022
Iupoauuout income
5
0�0
676,292
361,622
Other revenue
ll3622Ol
Q62
l��uov/r
________�
14/1307'
7otulgeoer�omeouao
� 4880025
6
3309
1855
Cbuo�o�oo��uauu�
The GASB 34 yosended June 3\2O03.
`~~'-�--- ofG�SB�4�o��uva�ub��
information prior to the umpmm�mo�
Source: City Finance Department
'9l
General fund:
Reserved
Unreserved
Total general fund
All other governmental funds:
Reserved
Unreserved, reported in:
Special revenue funds
Debt Service Fund
Capital projects funds
Total all other governmental funds
Total fund balances
City of Diamond Bar
Fund Balances of Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 30,
2003
2004
2005
2006
$ 440,407
$ 866,843
$ 1,125,918
$ 1,310,172
21,913,219
21,796,659
24,809,721
25,103,444
268,317
22,353,626
22,663,502
25,935,639
26,413,616
5,719,861
105,861
5,555,988
2,274,829
8,030,278
6,043,352
6,111,202
5,772,953
-
505,915
274,426
-
268,317
241,767
(5,443,309)
(2,612,373)
14,018,456
6,896,895
6,498,307
5,435,409
$ 36,372,082
$ 29,560,397
$ 32,433,946
$ 31,849,025
The City has elected to show only four years of data for this schedule.
Source: City Finance Department
-92- 1
City of Diamond Bar
Changes in Fund Balances, Governmental Funds
Last Four Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Fines and forfeitures
Licenses and permits
Investment income
Other '
Total revenues
Expenditures:
Current:
General government
Public safety
Highway and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest charges
Fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Bond issued
Bonds discount and issuance costs
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Debt service as a percentage of
noncapital expenditures
Fiscal Year Ended June 30,
2003 2004 2005 2006
$ 7,432,575.
$ 7,759,331
$ 8,632,837
$ 9,508,757
557,601
555,232
593,778
504,908
8,602,856
6,353,152
8,306,557
8,821,141
706,137
709,011
761,040
870,314
813,617
733,903
713,201
.589,922
1,467,127
1,457,345
1,732,555
2,389,149
658,922
395,929
654,066
1,250,570
74,818
234,951
480,740
792,216
.18,1981854
21,874,774
24,726,977
.20,3131653
3,163,516
3,663,055
3,787,005
3,551,659
4,973,248
4,857,179
4,954,630
5,404;259
1,006,768
1,365,737
4,301,146
4,769,497
1,946,025
2,114,090
2,750,815
2,613,834
2,808,613
3,419,856
1,050,025
2,748,539
8,057,482
9,261,289
1,682,830
5,320,597
- - 235,000
86,562 145,580 237,487 404,075
1,080,940
23,123,154 247826,786 18,763,938 25,047,460
(2,809,501) (6,627,932) 3,110,836 (320,483)
13,755,000 - - -
(769,300) - -
10,259,848 9,906,970 2,363,367 6,469,523
(10,453,243) (10,090,723) (2,600,654) (6,733,961.)
12,792,305
(183,753)
(237,287)
(264,438)
_
$ 9,982,804
$ (6,811,685)
$ 2,8731549
$ (584,921)
3.61.%
0.43%
1.15%
2.06%n
The City has elected to show only four years of data for this schedule.
Source: City Finance Department
-93-
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
�St' f
i
kri 't
'�j �'
-�
✓F
017
lat
atar�tLr
YAW,
`
'R
j'}i�11Y
9
2ukF�
'}21t
�„'n'��
-
Total
Ended
r�
MH
��
Net
Tax
Direct
June 30,
Secured
Unsecured
Nonunitary
Taxable Values
Exemptions
Rate
1997
$3,613,273,657
$ 64,175,586
$ 828,963
$ 3,678,278,206
$ 27,479,616
0.0529%
1998
3,608,349,286
67,777,550
884,347
3,677,011,183
37,731,129
0.0529%
1999
3,692,120,496
74,316,958
876,688
3,767,314,142
38,373,706
0.1529%
2000
3,836,874,815
63,750,454
125,921
3,900,751,190
36,494,583
0.1585%
2001
4,058,203,577
67,345,947
116,405
4,125,665,929
40,088,648
0.1704%
2002
4,286,132,334
71,531,889
127,441
4,357,791,664
41,869,703
0.0502%
2003
4,618,700,097
69,981,865
122,697
4,688,804,659
44,188,829
0.0514%
2004
5,003,437,689
77,407,924
140,122
5,080,985,735
47,621,182
0.0513%
2005
5,370,469,396
76,173,121
174,846
5,446,817,363
39,831,091
0.0513%
2006
5,791,564,163
83,223,023
163,090
5,874,950,276
51,408,286
0.0519%
$7,000,000,000
$6,000,000,000
$5,000,000,000
c $4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
Net Assessed Value
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Fiscal Year
Exempt values are not included in Total Net Taxable Values.
The assessed valuation data shown above represents the only data currently available with respect to the actual
market value of taxable property and is subject to the limitations described above.
Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone
-94-
�St' f
i
kri 't
'�j �'
-�
✓F
017
lat
atar�tLr
YAW,
`
'R
j'}i�11Y
9
2ukF�
'}21t
�„'n'��
-
r�
MH
��
r�t`N'i.
4 dlG'
7 5'Yk
"NIN
`r W
'N k
JS, r
tie r„
vi'yC4:31{tyM1�"L
ac'at''
1
4�`
r X4r�i�
<,
M t
MIR
4bd4'
c.'2
-i
X+`.,a.
y?,Z_�i
ye a
(f."r�t
N'S
Y(�
S_'}Y"'
`£( 1)�,
TAM
.x.47141
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Fiscal Year
Exempt values are not included in Total Net Taxable Values.
The assessed valuation data shown above represents the only data currently available with respect to the actual
market value of taxable property and is subject to the limitations described above.
Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone
-94-
City of Diamond Bar
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Value)
Direct Rates:
City of Diamond Bar basic rate
Overlapping Rates:
Children's Institutional Tuition Fund
Consolidated Fire Protection
County Lighting Maintenance
County Sanitation Dist 21
County school service - Walnut Valley
Development Ctr Handicapped Minor
Educational Augmentation Fund
LA County Library
LA County Capital Outlay
LA County Fire
LA County Flood Control
LA County General
Mt San Antonio Children's Center
Mt San Antonio Community College
Southeast Mosquito Abatement
Three Valley Municipal Water
Walnut Valley Unified School Dist
Walnut Valley Water Dist
Total Prop. 13 Rate
Detention Facilities 1987 Debt
Flood Control Ref Bonds 1993
LA County Flood Control Storm Dist #4
Mt San Antonio Ccd Debts of 2001 & 2004
Three Valley Municipal Water - 1112
Walnut Valley Unified School Dist Bonds
Total Voter Approved Rate
Tax Rate for Walnut Valley Unified School District Property Owners
County
Metropolitan Water Dist
Flood Control
Community College
Pomona Unified School Dist Bonds
Fiscal Year
Ended
June 30,
2006
0.05294
0.00271
0.16936
0.02016
0.01221
0:00894
0.00083
0.21072
0.02237
0.00011
0.00616
0.01094
0.24908 .
0.00028
0.02926
0.00035
0.00409
0.19057
0.00892
1.00000
0.00080
0.00003
0.00002
0.021.22
0.00520
0.09141
0.11868
1.11868
0.00092
0.00580
0.00025
0.14731
0.12910
0.28338
1.28338
Tax Rate for Pomona Unified School District Property Owners
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared
by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners
are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for the
Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school
district the property is located in.
�I The City has elected to show only one year of data for.this schedule.
Sources: Hdl Coren & Cone
LA County Property Tax Statement
-95-
Current Taxpayers
Hampton Apartments at Diamond Bar
Behringer Harvard Western Portfolio
Pacifica Trenton Center
GEM Gateway Limited Inc.
Muller Rock 2 Gateway LLC
Margaret M. Tam Trust, Et. Al.
Ari Diamond Bar
J.F. Shea Company Inc.
Emerald Pointe Apartments LLC
H. R. Barros Family Limited Partnership
City of Diamond Bar
Top 10 Property Taxpayers
Current Year and Nine Years Ago
2005-06
Assessed Valuation
Percentage of Total
Net Assessed Valuation
$ 34,100,000
0.58%
29,441,806
0.50010
27,300,000
0.46%n
25,768,277
0.44%
19,482,061
0.33%
15,923,105
0.27%
15,886,720
0.27%
15,745,649
0.27%
15,474,148
0.26%
15,070,875
0.26%
PGP Inland Communities
$ 214,192,641
3.65%
Source: Hdl Coren & Cone, Los Angeles County Assessor 2005/06 combined tax rolls.
-96-
1996-97
Percentage of Total
Taxpayers Nine Years Ago
Assessed Valuation
Net Assessed Valuation
Diamond Bar Business Associates
$ 29,535,399
0.79%
M & H Realty Partners II
20,666,119
0.55%
Hidden Manna Corporation
19,000,721
0.51%
J.F. Shea Company Inc.
12,168,2.75
0.33%
PGP Inland Communities
11,946,050
0.32%
Nikko Capital Corporation
11,585,739
0.31%
Martin Brattrud Properties
10,686,250
0.29%
Lincoln Emerald Pointe
10,562,250
0.28%
TCEP II Properties Joint Venture
10,196,519
0.27%
Nugit Trust
9,604,613
0.26%n
$ 145,951,935
3.91%
Source: Hdl Coren & Cone, Los Angeles County Assessor 2005/06 combined tax rolls.
-96-
Source: Los Angeles County Auditor/Controller.
-97-
$3,000,000
City of Diamond Bar
Total Secured Property Tax Collections
�, •
Secured
Property Tax Levies and Collections
$2,500,000
(
Last Ten Fiscal Years
(unaudited)
�?,p
Collected within the
Delinquent &
Fiscal Year
Ended
Total
Fiscal Year of Levy
Collections in
Y'.
June 30
Current Levy
Amount
% to Levy
Subsequent Years
_
1997
$ 1,,809,197
$ 1,625,252
89.83%
$ 183,945
1,781,264
1,680,816
94.36%
100,448
(1998
l
1999
1,810,266
1,758,764
97.16%
51,502
91,011
2000
1,904,915
1,813,904
95.22%
94.54%
106,713
2001
L
1,954,530
2,129,310
1,847,817
2,017,399
94.74%
111,911
2002
2003
2,301,716
2,211,793
96.09%
2004
2,504,974
2,390,554
95.43%
14,423
114,420
34,SF3
2005
2,698,515
2,568,064
95.17%
130,450
x'4'4
j 2006
2,921,267
2,615,545
89.53%
305,722
Source: Los Angeles County Auditor/Controller.
-97-
$3,000,000
Total Secured Property Tax Collections
$2,500,000
�?,p
tgti
Y'.
$2,000,000
yeaY
$1,500,000
#
����4
rz�
_r
�yyl�,
i
r4s?y-.
34,SF3
F"d
;edM
ry4^x'..
~
$1,000,000�7t:
x'4'4
ii !
qA �
x �
�'
f�flj.
�'
$500,000
t 26
pSz
xry
ry,
ztSF)i
atr
yM,-
xa
eiL
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Fiscal Year
Source: Los Angeles County Auditor/Controller.
-97-
City of Diamond Bar
Direct and Overlapping Debt
June 30, 2006
(unaudited)
Direct Debt
Diamond Bar Lease Revenue Bond
Overlapping Debts
Los Angeles County Detention Facilities 1987 Debt Svc
LA Co Flood Control Storm Dr. D.S. #4
*Metropolitan Water District Three Valley Area 1112
Mt San Antonio Com Col Dis 2001 Ser S-A
Mt San Antonio Com Col Dis 2004 Ser B
Pomona Unified School District Refund Ser 1997A DS
Pomona Unified School District 2002 Ser C DS
Pomona Unified SD Refund 2000 Series A Debt Service
Pomona Unified SD 1998 Series D Debt Service
Pomona Unified SD Refunding 2001 Ser A Debt Service
Pomona Unified SD 2002 Ser A Debt Service
Pomona Unified School District 2002 Ser B
Pomona Unified School District 2002 Ser D
Walnut Valley Unified SD Refund Series 1997 A
Walnut Valley Unified SD 2000 Series A
Walnut Valley Unified SD 2000 Series B
Walnut Valley Unified SD 2000 Series C
Walnut Valley Unified SD 2000 Series D
Walnut Valley Unified SD 2000 Series E
Walnut Valley Unified SD 2005 Ref Bonds
Total Direct and Overlapping Bonded Debt
2005/06 Net Assessed Valuation: $ 5,874,950,276
Debt to Assessed Valuation Ratios:
Gross Bonded
% Applicable
Net Bonded
Debt Balance
To City
Debt
$ 13,520,000
100.000
$ 13,520,000
8,395,000
0.800
67,170
1,080,000
0.812
8,773
182,369,156
0.863
1,574,494
6,710,000
10.667
715,762
22,360,000
10.667
2,385,163
41,610,000
20.688
8,608,272
14,780,000
20.688
3,057,685
19,305,000
20.688
3,993,816
9,435,000
20.688
1,951,912
20,845,000
20.688
4,312,411
9,285,000
20.688
1,920,880
14,365,000
20.688
2,971,829
15,000,000
20.688
3,103,198
36,097,718
57.863
20,887,099
995,000
57.863
575,733
770,000
57.863
445,542
7,570,000
57.863
4,380,203
21,998,114
57.863
12,728,693
6,001,837
57.863
3,472,822
11,955,000
57.863
6,917,481
$ 464,446,825 $ 97,598,938
Direct Debt 0.23%
Overlapping Debt 1.43%
Total Debt 1.66%
Report reflects general obligation debt which is being repaid through voter -approved indebmess.
It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded
capital lease obligations and certificates of participation.
a' This fund is a portion of a larger agency, and is responsible for debt in areas outside the city.
Sources: Hdl Coren & Cone
City Finance Department
-98-
City of Diamond Bar
Computation of Legal Debt Margin
Last Ten Fiscal Years
(unaudited)
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However,
this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The
computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation
the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local
government located within the state.
Sources: Section 43605 of the California Government Code
Hdl Coren & Cone
City Finance Department
-99-
Fiscal Year Ended June 30,
1997
1998
1999
2000
2001
Net value
$ 3,678,278,208
$ 3,677,011,183
$ 3,767,314,142
$ 3,900,751,190
$ 4,125,665,929
assessed
Add back: Exemptions
27,479,616
37,731,129
38,373,706
36,494,583
3,937,245,773
40,088,648
4,165,754,577
Gross assessed value
_
3,705,757,824
3,714,742,312
3,805,687,848
25%
25%
Conversion percentage
25%
25%
25%
Adjusted assessed
926,439,456
928,685,578
951,421,962
984,311,443
1,041,438,644
valuation
15%
15%
15%
15%
15%
Debt limit percentage
138,965,918
139,302,837
142,713,294
14?,646,716
156,215,797
Debt limit
City Debts:
-
-
Revenue bonds
-
-
$ 138,965,918
$ 139,302,837
$ 142,713,294
$ 147,646,716
$ 156,215,797
Legal debt margin
Fiscal
Year Ended June 30,
2002
2003
2004
2005
2006
Net assessed value
$ 4,357,791,664
$ 4,688,804,659
$ 5,080,985,735
$ 5,446,817,363
$ 5,874,950,276
51,408,286
Add back: Exemptions
41,869,703
44,188,829
47,621,182
39.831,091
5,486,648,454
5.926,358,562
5,128,606,917
Gross assessed value
4,399,661,367
4,732,993,488
25%
25%
Conversion percentage
25%
25%
25%
Adjusted assessed
1,099,915,342
1,183,248,372
1,282,151,729
1,371,662,114
1,481,589,641
valuation
150/0
15%
15%
15%
1S%
Debt limit percentage
164,987,301
177,487,256
192,322,759
205,749,317
222,238,446
Debt limit
City Debts:
Revenue bonds
13,7551000
13,755,000
13,755,000
13,755,000
13,520.000
$ 151,232,301
$ 163,732.256
$ 178,567,759
$ 191,994,317
$ 208,718,446
Legal debt margin
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However,
this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The
computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation
the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local
government located within the state.
Sources: Section 43605 of the California Government Code
Hdl Coren & Cone
City Finance Department
-99-
Calendar
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Population
(1)
56,003
57,271
58,300
56,287
57,066
58,115
58,966
59,399
59.595
59,722
City of Diamond Bar
Demographic and Economic Statistics
Last Ten Calendar Years
Total
Employment
(2)
29,500
30,200
30,700
29,700
30,100
29,700
29,900
29,900
30,700
31,400
Per
Personal
Capita
Unemployment
Income
Personal
Rate
(3)
Income (3)
(4)
Unavailable
Unavailable
4.70%
Unavailable
Unavailable
4.20%
$ 68,957
$ 25,472
4.00%
71,911
25,500
3.70%
Unavailable
Unavailable
3.80%
86,741
31,870
4.90%
Unavailable
Unavailable
5.10%
73,359
28,482
4.70%
74,941
28,906
3.60%
84,297
29,086
3.20%
Sources: (1) State Department of Finance
(2) California LaborMarketInfo, Data Library
(3j Information provided by the U.S. Census Bureau and Claritas
(4) State of California - Labor Market Info
- 100 -
City of Diamond Bar
Principal Employers
(unaudited)
Current Year and Nine Years Ago
2006
"Total Employment" as used above represents the total employment of all employers
located within City limits
I)
Source: InfoUSA - Government Division
- 101 -
Number of
% of Total
Employer
Employees
Employment
South Coast Air Quality Management
750
2.%n
600
1.9911 %
Avnet
Acosta Sales & Marketing
450
1.43%
St Paul Travelers
401
200
1.28%
0.64%
Diamond Bar High School
200
0.64%
Lab Support Inc
120
0.39%
Baybrook Services
120
0.38%n
Goodrich Hoist & Winch
120
0.39%
Southwest Patrol
120
0.39%
Starside Security & Investigation
100
0.32%
Biosense Webstar Inc
1.00
0.32%
Century 21 Diamond Realty
100
0.32%
DACOR
100
0.32%
Daily Egg Ranches Inc
100
0.32%
FIN -West Group
100
0.32%
First Mortgage Corp
"Total Employment" as used above represents the total employment of all employers
located within City limits
I)
Source: InfoUSA - Government Division
- 101 -
City of Diamond Bar
Full-time and Part-time City Employees
Last Ten Fiscal Years
Police services were contracted with the Los Angeles County Sheriffs Departments.
Building and safety services were contracted with D & J Municipal Services Inc.
Fire services were provided by the County Fire District.
Source: City Finance Department
- 102-
Fiscal Year Ended June 30,
Function
1997
1998 1999 2000
2001
General government -
22
23 22 21
24
Community development
4
3 5 6
4
Community services
13
13 12 41
38
Public works
3
3 4 4
4
Total
42
42 43 72
70
Fiscal Year Ended June 30,
Function
2002
2003 2004 2005
2006
General government
24
24 25 25
22
Community development
4
4 5 7
8
Community services
37
38 45 74
77
Public works
4
5 6 7
7
Total
69
71 81 113
114
Police services were contracted with the Los Angeles County Sheriffs Departments.
Building and safety services were contracted with D & J Municipal Services Inc.
Fire services were provided by the County Fire District.
Source: City Finance Department
- 102-
i
City of Diamond Bar
r.
Operating Indicators
I
Last Ten Fiscal Years
Fiscal Year Ended June 30,
1997
1998
1999
2000
2001
Police: (in calendar year) (1)
(a)
747
723
817
764
� Arrests
Street Sweeping Parking Citation
(a)
(a)
(a)
(a)
2,996
f Fire: (in calendar year) (2)
(a)
(a)
(a)
(a)
2,64
Number of emergency calls
(a)
(a)
(a)
(a)
(a)
Inspections
Public works: (in fiscal year) (3)
(a)
(a)
20.6
23.0
24.6
Street resurfacing (miles)
Parks and recreation: (in fiscal year) (4)
j
700
700
740
1,084
1,062
Number of recreation classes
785
785
785
785
785
Number of facility rentals
Fiscal Year Ended June 30,
f
2002
--
2003
2004
2005
2006
Police: (in calendar year) (1)
571
552
481
558
(a)
Arrests
Street Sweeping Parking Citation
7,995
6,662
6,710
5,790
(a)
Fire: (in calendar year) (2)
2,666
2,741
2,755
2,615
(a)
Number of emergency calls
(a)
(a)
1,206
1,159
(a)
( Inspections
Public works: (in fiscal year) (3)
19.7
18.5
5.0
18.6
16.8
Street resurfacing (miles)
Parks and recreation: (in fiscal year) (4)
947
915
1,022
1,102
1,376
� Number of recreation classes
785
1,021
1,736
4,123
4,305
Number of facility rentals
(a) Unavailable
'I
�i
i
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dept East Regional Operation Bureau
l
(3) City Public Works Department
(4) City Community Services Department