HomeMy WebLinkAboutCAFR - FY 2007-08CITY OF DIAMOND BAR, CALIFORNIA
FOR THE YEAR ENDED
JUNE 30, 2008
Prepared by:
FINANCE DEPARTMENT
Linda G Magnuson
Director of Finance
TABLE OF CONTENTS
June 30, 2008
INTRODUCTORY SECTION:
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting
Organization Chart
List of Principal Officials
FINANCIAL SECTION:
Independent Auditors' Report
Management's Discussion and Analysis (Required Supplementary Information)
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Governmental Funds:
Balance Sheet
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in Fund Balances
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of Activities
Proprietary Funds:
Statement of Net Assets
Statement of Revenues, Expenses and Changes in Fund Net Assets
Statement of Cash Flows
Notes to Basic Financial Statements
Page
Number
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vi
vii
viii
1-2
3-11
13
14
15
16-17
19
20-21
22
23
24
25
27-48
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TABLE OF CONTENTS
(CONTINUED)
June 30, 2008
Page
Number
FINANCIAL SECTION (CONTINUED):
Required Supplementary Information:
Budgetary Comparison Schedules: 49
General Fund 50
Park and Facility Development Special Revenue Fund 51
Proposition 1B Bond Special Revenue Fund 52
Note to Required Supplementary Information 53
Supplementary Information:
Other Governmental Funds:
Combining Balance Sheet 55
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 57
Other Special Revenue Funds:
58-59
Combining Balance Sheet
60-61
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
62-63
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
State Gas Tax Fund
64
Proposition C Transit Fund
65
Intermodal Surface Transportation Enhancement
Act (ISTEA) Special Revenue Fund
66
Integrated Waste Management Fund
67
Traffic Improvement Fund
68
Traffic Congestion Relief Fund
69
Air Quality Improvement Fund
70
Trails & Bikeways Fund
71
California Law Enforcement Equipment Program (CLEEP) Fund
72
Proposition A Transit 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 Capital Projects Fund: 79
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Capital Improvement Fund 80
-T1 211
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TABLE OF CONTENTS
(CONTINUED)
FINANCIAL SECTION (CONTINUED):
Supplementary Information (Continued):
Page
Number
Internal Service Funds: 81
Combining Statement of Net Assets 82
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets 83
Combining Statement of Cash Flows 84
STATISTICAL SECTION:
Description of Statistical Section Contents 85
Financial Trends:
Net Assets by Component - Last Six Fiscal Years 86-87
Changes in Net Assets - Last Six Fiscal Years 88-89
Fund Balances of Governmental Funds - Last Six Fiscal Years 90-91
Changes in Fund Balances of Governmental Funds - Last Six Fiscal Years 92-93
l Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 94
Direct and Overlapping Property Tax Rates - Current Fiscal Year 95
Top 10 Property Taxpayers - Current Fiscal Year and Nine Fiscal Years Ago 96
Secured Property Tax Levies and Collections - Last Ten Fiscal Years 97
f Debt Capacity:
l Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 98
Direct and Overlapping Debt 99
..,, Computation of Legal Debt Margin - Last Ten Fiscal Years 100
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years 101
Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 102
Operating Information:
Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years 103
Operating Indicators by Function - Last Ten Fiscal Years 104
Capital Asset Statistics by Function - Last Five Fiscal Years 105
I Ron Everett
Mayor
Carol Herrera
Mayor Pro Tem
Wen P. Chang
Council Member
Jack Tanaka
I Council Member
Steve Tye
Council Member
Recycled paper
21825 Copley Drive ® Diamond Bar, CA 91765-4178
(909) 839-7000 ® Fax (909) 861-3117
-cember 23, 2008 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, 2008. 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 generally accepted accounting principles
(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 assurance that the financial statements will be free from
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, 2008, 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, 2008,
were fairly presented in conformity with GAAP. The independent auditor's
report is presented as the first component of the financial section of this
report.
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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.
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 60,360, 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.
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 and property tax revenues. To spite this growth, the
nation's economy is definitely in turmoil. Retail sales are down and unemployment numbers are reaching
new heights. This along with the major budget shortfalls experienced by the State, are of a major concern
to the City of Diamond Bar.
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ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
Recent headlines have been filled with news about the slowing economy and budget woes at the State
level. With the status of State funds as uncertain as ever, it is anticipated that more of the financial burden
will fall upon municipal agencies. Although the City has built a strong General Fund reserve, the fiscal
year 2008-2009 budget was prepared with the possibility of a reduction in State funds in mind.
The erosion of the City's sales tax base continues to be a major concern. As a result there continues to be
an emphasis on Economic Development within the City. The City has started reaping the rewards of this
emphasis. In fiscal year 06-07 the City welcomed a new Target Store at the intersection of Grand Avenue
and Golden Springs Drive. This fiscal year the City welcomed a Chili's Bar and Grill to the same shopping
center.
In October 2007, Majestic Realty announced its plans to develop a professional football stadium based
entertainment, retail and office development in the neighboring city, City of Industry. The NFL stadium is
proposed to seat 75,000 people and will be surrounded by retail shops, restaurants, a live theater, movie
theater, outpatient medical center, and offices along with necessary parking structures. It is anticipated that
Phase 1 which includes the stadium will be open for business in the fall of 2011. This proposed
development is of great concern to the City of Diamond Bar. The City will be seriously impacted by major
increases in traffic since the primary access to the venue will be at the Orange (SR57) and Pomona (SR -60)
interchange located within the City of Diamond Bar. Public Safety in the City will be affected by the
increase in population during major events. There are also concerns as to how it will affect the City's air
quality, noise levels and aesthetics. The City has responded to the environmental report and will monitor
the development's progress.
In fiscal year 08-09, 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 continue working on the annexation
of the Crestline area. Development opportunities in the City's commercial areas include the Walnut Valley
Trailer Park site; site "D"; and the K -Mart Property.
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.
1101.E 1
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, 2007. 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.
F., IIAT141 , -a 11acy-43 gw1 1
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 thirteen consecutive years (fiscal years ended 1995
through 2007). 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.
I N 01
1 tv 9 RIM WIN I V
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.
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 FY07-08, most of the City funds were invested in the
Local Agency Investment Fund (LAIF), which is administered by the State Treasurers 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. Losses from $50,001 to $ 100,000 per claim are pooled based on the
member's share of losses under $50,000. Losses between $100,000 and $2,000,000 and employer's
liability losses from $5,000,000 to $10,000,000 are pooled based. Costs between $2,000,000 and
$300,000,000 are paid by excess insurance purchased by the CJPIA. Costs in excess of $300,000,000 are
pooled based on payroll.
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REPORTING ENTITY AND ITS SERVICES (CONTINUED)
Risk Management (Continued)
The City carries Environmental Insurance through the CJPIA. This policy covers sudden and gradual
pollution of property, streets, and storm drains owned by the City. There is a $50,000 deductible and is on
a claims -made basis.
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 Authorityby the City. There
is a $5,000 per loss deductible. Premiums for the coverage are paid annually.
The City has also established a self-insurance internal service fund to cover the City's share of any potential
losses not covered by the CJPIA. The City Council established a policy of annually transferring $100,000
to the fund to create a self-insurance reserve. Policy states that when the reserve reaches $1,000,000, the
reserves are deemed to be sufficient. No transfer was necessary this fiscal year, since the reserves reached
that milestone in fiscal year 1998-99. The self-insurance reserve at June 30, 2008 was $1,025,011.
Defined Benefit Pension Plan
The City has contracted with the California Public Employees Retirement System (PERS) to provide
retirement, disability, death and survivor benefits for all eligible full and part-time City employees. The
pension benefit obligation varies from year to year and is computed as part of an actuarial valuation. For
the three years ended June 30, 2006, 2007, and 2008 the employer contribution to PERS was 11.148%,
11.051% and 10.733% respectively, of the annual covered payroll. 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. The City's total contribution to the system including both the
employer and employee's contribution was $613,665 for FY2007-08.
Acknowledgements
The preparation of this Comprehensive Annual Financial Report 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 thep � City's r aration of the Ci 's Comp rehensive 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.
i_ Sincerely,
James DeStefano
City Manager
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Certificate o
Achievement
for Excellence
in Financial
Reportmn 4
Presented to
.City of Diamond Bar
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2007
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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CITY OF DUMOND BAR
Mayor
Jack Tanaka
Mayor Pro Tem
Ron Everett
Councilmember
Wen Chang
Councilmember
Carol Herrera
Councilmember
Steve Tye
City Manager
James DeStefano
Assistant City Manager
David Doyle
City Clerk
Tommye Cribbins
Director of:
Community Services
Bob Rose
Community Development
Nancy Fong
Finance
Linda Magnuson
Information Systems
Ken Desforges
Public Works
David Liu
- viii -
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
MICHAEL R. LUDIN, CPA
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT J. CALLANAN, CPA
5 CORPORATE PARK, SUITE 100 * MOMSHII M.
PERL MP, CPA
*THOMAS M. PERLOWSHI, CPA
IRVINE, CALIFORNIA 92606-5165 *HARVEY J. SCHROEDER, CPA
(949) 399-0600 * FAX (949) 399-0610 KENNETH R. AMES, CPA
www.diehlevans.com p *WILLIAM C. PENTZ, CPA
December 23, 2008 -A PROFESSIONAL CORPORATION
INDEPENDENT AUDITORS' REPORT
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, 2008, 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
j plan and perform the audit to obtain reasonable assurance about whether the financial statements are
Ii 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, 2008, and the
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.
-1-
i OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598
(760) 729-2343 * FAX (760) 729-2234 (760) 741-3141 * FAX (760) 741-9890
In accordance with Government Auditing Standards, we have also issued our report dated
December 23, 2008 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 laws, 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 statements and, 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.
1 201 �021 I M!'
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MANAGEMENT'S DISCUSSION AND ANALYSIS
THIS PAGE LEFT BLAND INTENTIONALLY
CITY OF DIAMOND BAR
Management's Discussion and Analysis
June 30, 2008
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, 2008. 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 assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by
$411,296,785 (net assets). Of this amount, $36,236,504 (unrestricted net assets) may be used to meet
the City's ongoing obligations to citizens and creditors.
• The total governmental fund revenues from all sources equaled $27,932,439.
• The total cost of all City governmental fund programs equaled $24,747,763.
• As of the close of the current fiscal year, the City of Diamond. Bar's governmental funds reported
combined ending fund balances of $37,991,462, an increase of $2,842,076 in comparison with the prior
f year. Approximately $30.3 million of that amount is available for spending at the City's discretion.
Although funds haven't been specifically reserved for economic development activities or for future
capital projects to benefit the community it is anticipated in the future some of these funds may be used
for these purposes.
• At the end of the current fiscal year, unreserved fund balance for the general fund was $31,065,127, or
over one and three quarters 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 financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements — The government —wide financial statements are designed to provide
readers with a broad overview of the City of Diamond Bar's finances, in a manner similar to a private -sector
business.
The statement of net assets presents information on all of the City of Diamond Bar's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in new assets may serve
as a useful indicator of whether the financial position of the City of Diamond Bar is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused vacation leave).
See independent auditors' report.
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CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2008
Overview of the Financial Statements (Continued)
Government -wide financial statements (Continued)
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 fiinctions
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 or enterprise funds.
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 t
proprietary funds.
Governmental Funds — Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resources, available at the end of the fiscal year. This information helps to determine whether there
are more or fewer financial resources that can be spent in the near future to finance the City's programs.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impacts of the City's near-term financing decisions. Both the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City of Diamond Bar adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Proprietary Funds The type of proprietary funds that the City maintains are internal service funds that are t
used to allocate costs internally among the various functions of the City. The City of Diamond Bar uses these
funds to account for its liability insurance costs and vehicle and computer replacement costs. Because these
services predominantly benefit governmental rather than business -type functions, they have been included
within governmental activities within the government -wide financial statements.
See independent auditors' report.
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2008
Overview of the Financial Statements (Continued)
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other Information — In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementafy 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 $411,296,785 at the close of 2008. (see Table 1)
By far the largest component of the City's net assets (90 percent) is its investment in capital assets (e.g., land,
buildings, infrastructure, machinery, equipment, and construction in progress), 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.
Table 1
CITY OF DIAMOND BAR
Statement of Net Assets
Governmental Activities
2008 2007
Current and other assets $46,289,772 $43,549,754
Capital assets 383,974,296 388,377,190
Total Assets 430,264,068 431,926,944
Long-term debt outstanding 12,806,584 13,126,500
Other Liabilities 6,160,699 4,729,046
Total Liabilities 18,967,283 17,855,546
Net assets:
(' Invested in capital assets, net of debt 370,949,296 375,216,400
Restricted 4,110,985 4,782,114
Unrestricted 36,236,504 34,072,884
Total Net Assets $411,296,785 $414,071,398
II Although the City's net assets decreased by $2,774,613 this year there was an increase in the unrestricted
l portion of the net assets. The total value of capital assets decreased due to the aging and resulting depreciation
of the City's capital assets.
ISee independent auditors' report.
-5-
Management's Discussion and Analysis
June 30, 2008
Financial Analysis (Continued)
At the end of fiscal year 2008 the City is able to report a 6.4 percent or $2,163,620 increase in unrestricted net
assets from the prior fiscal year. This is an indication of the City's efforts to continually expend its resources
conservatively in anticipation of the future purchase or construction of a city hall and possible revenue
Revenues
The City's total revenues were $26while the total cost of all programs and services was
$29.3 million. Revenues this fiscal year were 15.6% lower than those of the prior year. There were decreases in
most of the revenue categories. There were however a few increases in the revenue categories which offset
some of the revenue reduction.
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 inLieu ofSales Taxes
Franchise Taxes
Property transfer tax
Othertaxea
Motor vehicle in lieu
Investment Income
Other
Total revenues
Expenses:
General Government
Public Safety
Highways and Streets
Community Development
Parks, Recreation and Culture
Interest and Fiscal Charges
Total expenses
Change innet assets
Net assets -O7/O1
Net assets - 06/30
See independent oocibzrs`
2008 2007
$ 5.858.619 $ 6.675,619
4`307'074 6.968.824
219.183 1.254.314
8,194,270 7,727,580
800,390
774,757
3.114.563
2.935,703
987,815
1.007.642
1.024.710
1.064.621
283'433
331.006
33,885
33.822
262.084
350.194
1.420.989
1.478.010
4,388
41,362
26,511,172
30,641,544
4,473.666
4,784,314
4.944'729
4.876/435
13/034,6R69
14`019.550
2,251.198
2.292.757
5.188.977
4.779.588
414,071,398 414,680,540
$ 411,296,785 $ 414,071,398
Management's Discussion and Analysis
(Continued)
June 30, 2008
Government -wide Financial Analysis (Continued)
The following are highlights of some of the major differences:
Revenues
• Charges for services decreased this year primarily due to last year's receipt of traffic mitigation and
developer fees related to the construction of the Brookfield homes project.
• The dramatic decrease of over $2.7 million in operating grants and contributions is due to several
different factors. Last year the City received a one time contribution of $502,600 from the County
to assist with the implementation of a traffic management system. During the previous fiscal year
there were grants received from both the State and Federal Government which reimbursed the City
for various operating expenditures. In addition during the previous fiscal year the City received two
years' allocation of traffic congestion relief funds from the State.
• Last year the City received Federal Funds for the improvement of Grand Avenue. These funds in
the amount of $1,066,605 were reflected in the capital grant and contributions category causing this
category to be higher than the current year.
• The increase in property tax revenue is primarily due the continuing rise of property values in fiscal
year 07-08. Another factor causing the increase is from the addition of new homes from the
Brookfield development project.
• Sales tax was slightly higher this fiscal year due to the rise in gasoline prices. The City is located at
the intersection of several freeways and as a result some of its highest sales tax producers are
service stations.
Expenses
This year expenses for the City totaled $29.3 million which is nearly $2 million or 6.3% less than the previous
fiscal year. There were both increases and decreases in the various categories. The following are the highlights
of the major differences:
• General Government was lower this year due primarily to the decrease in the City's Information
Technology Division. This division has been responsible for implementation of several new computer
systems. Last fiscal year saw the purchase of hardware and software related to these implementations.
• There was a slight increase in Public Safety expenditures (1.4%) this year. Contract rates with the L.A.
County Sheriffs Department rose approximately 7% in fiscal year 07-08. This increase was mitigated
since the City had vacancies in its contracted law enforcement positions during the year.
• Streets and Highways category was lower this year by a little over $2 million. In fiscal year 2006-07 the
I
City completed a major rehabilitation of a portion of Grand Avenue. The cost of this project was
$2.1 million.
• There was a slight decrease in Community Development. This decrease is due a decrease in Building
(I and Safety expenditures.
• Interest rates on the outstanding variable rate lease revenue bonds were lower this year. This along with
the lower principal outstanding on the lease revenue bonds is responsible for the decrease in Interest and
Fiscal Charges.
See independent auditors' report.
Management's Discussion and Analysis
(Continued)
June 30, 2008
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 $37,991,462, an increase of $2,842,076 in comparison with the prior year. Of this
amount, there is $6,458,948 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 $31,065,127, while the total fund balance reached
$32,929,514. 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 184.4% of total
general fund expenditures, while total fund balance represents 195.5% of the same amount.
Overall the fund balance of the City of Diamond Bar's general fund increased by $2,467,964 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 a slight 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.
• Traffic mitigation fees were received to fund future traffic improvements.
® Rents and concessions continued rise due to the popularity of the City's park facilities including the
Diamond Bar Center and cell site leases.
® Conservative expenditure budgets also contribute to the growth of the general fund balance. This
includes a contract city business model which aides the City in containing costs.
Fund balance in the City's Park and Facility Development Fund has been derived primarily from the receipt of
developer related fees which have been collected for the purpose of improving the City's parks and facilities.
The fund ended the year with a fund balance of $1,302,445, which is a decrease of $405,830. This change in
fund balance is due to the fact these funds were used to assist in funding eight different park and facility
improvement projects. The improvements ranged from improving ball fields for the City's use at a local middle
school to making improvements to City's Sycamore Canyon Park to making trail improvements in the Sycamore
Canyon area.
See independent auditors' report.
l
-8-
lei VVE63 a Q A UV Lei 0110 : :
Management's Discussion and Analysis
(Continued)
June 30, 2008
Financial Analysis of the City's Funds (Continued)
General Fund Budgetary Highlights
Original revenue budget projections were decreased during the year by 4.66% to reflect more conservative
revenue projections. The actual revenue came in 2.5% less than anticipated. There were categories which
exceed expectations and some that obviously were less than anticipated.
The General Fund taxes category include property taxes, sales tax, franchise tax and property transfer tax.
These revenues exceeded expectations by $401,381. The variance between the amount budgeted and the amount
received is primarily due to the under estimation of property tax revenue.
The City anticipated receiving FEMA reimbursement and over estimated the revenue from the State for vehicle
license fees causing the budgeted revenue in the Intergovernmental category to exceed actual revenue received.
This has been reflected in the fiscal year 08-09 budget.
During fiscal year 07-08 the City had a piece of property which was in escrow for most of the year. It was
anticipated that this property sale would be completed by the end of the fiscal year. It was anticipated that this
property would sell for $1,225,000. Therefore the Other Revenue budget was not realized. It should be noted
that if this sale had been completed the City's General Fund revenues would have exceeded expectations
overall.
The investment income revenue estimate was much higher than anticipated due to higher investment yields and
cash balances.
Although there was an increase in General Fund appropriations for the year of 6.4% from the original budget to
the amended budget, the final expenditures actually came in 20% or $4.2 million less than budgeted. At the end
of the year, were General Fund open encumbrances equaling $958,231 which were carried over into fiscal
year 08-09. Reasons for the difference between budget and actual include salary savings from staff vacancies,
law enforcement contract savings from contracted position vacancies, various studies and projects which were
either postponed or cancelled.
See independent auditors' report.
-9-
Management's Discussion and Analysis
(Continued)
June 30, 2008
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, 2008 amounts to $383,974,296 (net of accumulated depreciation). This investment in capital assets
includes land, buildings and improvements, Runiture and fixtures, vehicles and equipment, infrastructure and
construction in progress. The total decrease in the City's investment in capital assets was approximate 1.1%
from the previous year.
Table 3
City of Diamond Bar
Capital Assets
(net of depreciation)
Land
Right of Way
Buildings and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Construction in Progress
2008 2007
$ 6,206,190
$ 6,206,190
256,536,095
256,536,095
15,195,460
16,502,917
7,692
8,815
653,078
632,903
103,882,787
107,168,051
1,492,994
1,322,219
$ 383,974,296
$ 388,377,190
Although there is a net decrease in the value of Building and Improvements there were improvements made to
two City parks. Batting cages were constructed and completed at Pantera and Peterson Parks. The decrease is
due to depreciation.
The decrease in Furniture and Fixtures was due to the depreciation of existing assets.
The increase in Vehicles and Equipment is primarily a result of the purchase of several pieces of equipment to
either improve efficiency or provide new programs to the citizens of Diamond Bar. The highlights are:
• Black out shades for the windows at the Diamond Bar Center to enhance daytime viewing of projected
screen images.
• New computer servers and network hardware for the new computerized traffic management system
which is currently under development.
• A portable traffic message board was purchased to increase traffic safety by posting construction,
traffic congestion or road closure warnings.
See independent auditors' report.
-10-
Management's Discussion and Analysis
(Continued)
June 30, 2008
Capital Asset and Debt Administration (Continued)
Capital assets (Continued)
The overall decrease in the value of the City's capitalized assets is due to the depreciation of the City's
infrastructure. Significant additions to capital assets include:
• Traffic signal improvements include modifications and improvements to nine intersections including:
Intersection of Pathfinder and Peaceful Hills
Intersection of Diamond Bar Blvd and Maple Hill
Intersection of Diamond Bar Blvd and Sunset Crossing
Intersection of Diamond Bar Blvd and North Bound SR 57
Intersection of Diamond Bar Blvd and Cold Spring
Intersection of Diamond Bar Blvd and Mountain Laurel
Intersection of Brea Canyon Road and Sliver Bullet
Intersection of Diamond Bar Blvd and Highland Valley
Intersection of Diamond Bar Blvd and Grand Ave
• Pavement additions included making Washington Street a cul-de-sac.
Construction in progress at the end of the year included twenty three projects in various stages of construction.
There were eight park improvement projects in progress totaling $349,382. The rest of the projects 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 $1,145,683 at the end of the year.
Additional information on the City's capital assets can be found in note 4.
Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt equaled
$13,321,584. The following table shows the breakdown of the debt outstanding.
City of Diamond Bar
Outstanding Long Term Debt at Year-end
Variable Rate Lease Revenue Bonds
(backed by the Public Financing
Authority) $ 13,025,000
Unamoritzed Bond Discount (114,625)
Compensated Absences (backed by
the City) 411,209
$ 13,321,584
Additional information on the City's long-term debt can be found in note 5.
See independent auditors' report.
- 11 -
Management's Discussion and Analysis
(Continued)
June 30, 2008
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 2008-2009 budget is a fiscally conservative budget. As a result of the slow down in the economy
anticipated revenues in the General Fund show a slight rise with the exception of development related fees. At
the same time, the expenditure budget is slightly less than last year's appropriations. The City has made a
conscientious decision to use some general fund balance reserves for economic development purposes. As a
result, the fiscal year 08 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 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-
GOVERNMENT WIDE FINANCIAL STATEMENTS
I ull It
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
June 30, 2008
ASSETS:
Cash and investments (Note 2)
Accounts receivable
Interest receivable
Due from other governments
Due from employees
Notes receivable
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
Unearned revenue
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.
-13-
Governmental
Activities
$ 42,812,278
280,597
292,635
1,821,908
927
230,435
526,459
324,533
264,235,279
119,739,017
430,264,068
2,688,174
106,079
19,320
1,126,633
90,837
931,017
478,650
204,989
515,000
12,806,584
18,967,283
370,949,296
309,533
2,912,276
889,176
36,236,504
$ 411,296,785
CITY OF DIAMOND BAR
STATEMENT OF ACTIVITIES
For the year ended June 30, 2008
Functions/programs
Expenses
Governmental activities:
Net (Expense)
General government
$ 4,473,666
Public safety
4,944,729
Highways and streets
12,034,669
Community development
2,251,196
Parks, recreation
Program Revenues
and culture
5,188,977
Interest on long-term debt
392,548
Total governmental
activities
$ 29,285,785
(392,548)
$ 5,858,619 $ 4,307,074 $ 219,193 (18,900,899)
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 revenues
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-14-
8,194,270
800,390
3,114,562
987,615
1,024,710
283,433
33,865
262,064
1,420,989
4,388
16,126,286
(2,774,613)
414,071,398
$ 411,296,785
Net (Expense)
Revenue and
Changes in
Program Revenues
Net Assets
Charges
Operating
Capital
for
Grants and
Grants and
Governmental
Services
Contributions
Contributions
Activities
$ 225,553
$ 34,169
$ -
$ (4,213,944)
1,176,931
157,735
-
(3,610,063)
2,851,187
1,673,027
45,193
(7,465,262)
23,351
806,480
-
(1,421,365)
1,581,597
1,635,663
174,000
(1,797,717)
(392,548)
$ 5,858,619 $ 4,307,074 $ 219,193 (18,900,899)
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 revenues
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-14-
8,194,270
800,390
3,114,562
987,615
1,024,710
283,433
33,865
262,064
1,420,989
4,388
16,126,286
(2,774,613)
414,071,398
$ 411,296,785
FUND FINANCIAL STATEMENTS
THIS PAGE LEFT BLANK INTENTIONALLY
GOVERNMENTAL FUNDS
GENERAL FUND
The General Fund has been classified as a major fund and is used to account for resources traditionally
associated with government, which are not legally or by sound financial management to be accounted
for in another farad.
SPECIAL REVENUE FUNDS
The 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. The following Special Revenue
Funds have been classified as major funds in the accompanying financial statements:
Park and Facility Development Fund - This fund is used to account for the development and
enhancement of the City's parks.
Proposition 1B Bond Fund - This fund is used to account for the receipt and expenditures of
Proposition 1B Bond funds from the State of California.
-15-
CITY OF DIAMOND BAR
BALANCE SKEET
GOVERNMENTALFUNDS
June 30, 2008
ASSETS
ASSETS:
Cash and investments
Cash and investments with fiscal agents
Accounts receivable
Interest receivable
Due from other funds (Note 3)
Due from employees
Due from other governments
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:
Reserved for:
Encumbrances
Bond retirement
Debt service
Unreserved, Reported in:
General Fund
Special Revenue Funds
Capital Projects Funds
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
See independent auditors' report and notes to basic financial statements.
-16-
Special Revenue Funds
Park and Facility Proposition
General Development 1B Bond
Fund Fund Fund
$ 34,204,926 $ 1,320,237 $ 938,839
15,000 - -
219,607 - -
292,635 - -
243,660 - -
927 - -
1,255,024 - _
$ 36,231,779 $ 1,320,237 $ 938,839
$ 1,603,825 $ 17,792 $ -
101,565 - _
1,126,633
470,242 - 931,017
3,302,265 17,792 931,017
958,231 144,586 -
906,156 -
31,065,127 - -
- 1,157,859 7,822
32,929,514 1,302,445 7,822
$ 36,231,779 $ 1,320,237 $ 938,839
Other Total
Governmental Governmental
Funds Funds
$ 4,266,229
$ 40,730,231
309,533
324,533
60,990
280,597
-
292,635
-
243,660
-
927
566,884
1,821,908
230,435
230,435
$ 5,434,071
$ 43,924,926
$ 1,066,557
$ 2,688,174
4,514
106,079
-
1,126,633
243,660
243,660
71,833
1,473,092
90,837
90,837
204,989
204,989
1,682,390
I;
5,933,464
5,356,131 6,458,948
- 906,156
309,533 309,533
- 31,065,127
3,789,871 4,955,552
(5,703,854) (5,703,854)
3,751,681 37,991,462
$ 5,434,071 $ 43,924,926
-17-
THIS PAGE LEFT BLANK INTENTIONALLY
MW1 • •�
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO TBE STATEMENT OF NET ASSETS
June 30, 2008
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, 2008 are:
Bonds payable
$(13,025,000)
Deferred charges for issuance costs
526,459
Bond discount
114,625
Compensated absences
(411,209)
Accrued interest payable from the current portion of interest due on bonds
payable has not been reported in the governmental funds.
Certain amounts due from other governments that are not available to pay for
current period expenditures and, therefore, are recorded as deferred revenue
in the governmental funds.
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.
-19-
$ 37,991,462
383,910,090
(12,795,125)
(19,320)
542,075
1,667,603
$ 411,296,785
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended June 30, 2008
Special Revenue Funds
Park and Facility
Proposition
General
Development
1B Bond
Fund
Fund
Fund
REVENUES:
Taxes $
10,165,881
$ -
$ -
Special assessments
-
Intergovernmental revenue
4,611,368
1,062,895
37,371
Charges for services
-
_
-
Fines and forfeitures
637,484
-
-
Licenses, permits and fees
2,947,476
174,000
-
Investment income
1,343,002
67,477
7,822
Other revenues
826,177
-
-
TOTAL REVENUES
20,531,388
1,304,372
45,193
EXPENDITURES:
Current:
General government
3,987,656
-
-
Public safety
4,927,377
-
-
Highways and streets
2,511,382
-
-
Parks, recreation and culture
3,714,762
-
-
Community development
1,702,734
17,791
-
Capital outlay
_
_
_
Debt service:
Principal
Interest and fiscal charges
_
-
_
TOTAL EXPENDITURES
16,843,911
17,791
-
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
3,687,477
1,286,581
45,193
OTTER FINANCING SOURCES (USES):
Transfers in
1,439,832
26,825
-
Transfers out
(2,659,345)
(1,719,236)
(37,371)
TOTAL OTHER FINANCING SOURCES (USES)
(1,219,513)
(1,692,411)
(37,371)
NET CHANGE IN FUND BALANCES
2,467,964
(405,830)
7,822
FUND BALANCES - BEGINNING OF YEAR
30,461,550
1,708,275
-
FUND BALANCES - END OF YEAR $
32,929,514
$ 1,302,445
$ 7,822
See independent auditors' report and notes to basic financial statements.
-20-
Other
Total
Governmental
Governmental
Funds
Funds
$ -
$ 10,165,881
543,561
543,561
4,185,314
9,896,948
1,111,655
1,111,655
-
637,484
-
3,121,476
210,956
1,629,257
-
826,177
6,051,486
27,932,439
-
3,987,656
6,581
4,933,958
2,415,036
4,926,418
-
3,714,762
525,971
2,246,496
4,271,890
4,271,890
255,000
255,000
411,583
411,583
7,886,061 24,747,763
(1,834,575) 3,184,676
5,799,492
7,266,149
(3,192,797)
(7,608,749)
2,606,695
(342,600)
772,120
2,842,076
2,979,561 35,149,386
$ 3,751,681 $ 37,991,462
-21-
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, 2008
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
expenses in the current period:
Capital expenditures
Depreciation expense
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 of governmental funds. Neither transaction, however, has any effects on net
assets. Also, governmental funds report the effect of issuance costs, premiums, discounts
and similar 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
Amortization of bond discount
Amortization of issuance costs
Compensated absences
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 governmental funds are for funds that become available in the
current year. These funds were already reported as revenues in the Statement of Activities
in prior years.
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.
-22-
$ 1,702,372
(6,097,833)
$ 255,000
(4,585)
(21,058)
(80,144)
$ 2,842,076
(4,395,461)
(5,510)
149,213
23,620
(1,494,262)
105,711
$(2,774,613)
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2008
ASSETS
CURRENT ASSETS:
Cash and investments
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
Less accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES:
Accounts payable
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report and notes to basic financial statements.
-23-
Internal
Service
Funds
$ 2,082,047
211,580
(147,374)
64,206
2,146,253
478,650
64,206
1,603,397
$ 1,667,603
CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
For the year ended June 30, 2008
OPERATING EXPENSES:
Insurance premiums
Maintenance and operations
Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES:
Investment income
LOSS BEFORE TRANSFERS
TRANSFERS IN
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-24-
Internal
Service
$ 285,105
4,898
19,881
309,884
(309,884)
72,995
(236,889)
342,600
105,711
1,561,892
$ 1,667,603
CITY OF DIAMOND BAR
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance payments
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash received from other funds
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of capital assets
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
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 payable
NET CASH USED BY OPERATING ACTIVITIES
See independent auditors' report and notes to basic financial statements.
-25-
Internal
Service
$ (318,280)
342,600
(17,794)
72,995
79,521
2,002,526
$ 2,082,047
$ (309,884)
19,881
(28,277)
$ (318,280)
THIS PAGE LEFT BLANK INTENTIONALLY
-26-
NOTES TO BASIC FINANCIAL STATEMENTS
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2008
1. 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 by an elected five -member city council. As required by accounting principles
generally accepted in the United States of America, 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 fall 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 (the Agency) was established
February 6, 1996, pursuant to the State of California Health and Safety Code, Section 33000,
entitled "Community Redevelopment Law". Although it is a legally separate entity from the
City, the Agency is reported as if it were part of the City because of its purpose to prepare and
execute plans for 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, 2008. 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.
- 27 -
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
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 interfand 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
® Notes to basic financial statements
See independent auditors' report.
W -W-2
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
1. 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.
- 29 -
low&Q c .�
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
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 l
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 used 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.
The Park and Facility Development Special Revenue Fund - This fund is used to account for
the development and enhancement of the City's parks.
The Proposition 1B Bond Fund - This fund is used to account for the receipt and expenditures
of Proposition 1B Bond funds from the State of California.
See independent auditors' report.
-30-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Fund Classifications (Continued):
The City's fund structure also includes the following fund types:
GOVERNMENTAL 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.
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).
PROPRIETARY 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. 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
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.
See independent auditors' report.
-31-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
f 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 recorded at cost where historical records are ii
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. In the fiscal year
ended June 30, 2008, the City, with the assistance of an outside consultant, valued and recorded
its public domain assets acquired prior to July 1, 2002. The City now has all of its
infrastructure asset data valued and recorded in its entirety as of June 30, 2008.
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.
sm
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
1. REPORTING ENTITY .AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
h. Encumbrances:
Encumbrance accounting, under which purchase orders, contracts and other commitments for
the expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation, is employed as an extension of formal budgetary control in the governmental
funds. Encumbrances outstanding at year-end do not constitute expenditures or liabilities, but
are reported as reservations of fund balance.
i. Compensated Absences:
O 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.
j 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,
Eas 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:
Deferred charges represent capitalized costs incurred in connection with the issuance of
long-term debt. These costs are amortized over the life of the debt on a straight-line basis.
See independent auditors' report.
-33-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
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 I
November I - Vt installment
February I - 2nd installment
December 10 - 1St installment
April 10 - 2nd installment
December 11 - I st 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.
-34-
CITY OF • BAA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. CASH AND INVESTMENTS:
Cash and Investments:
Cash and investments at June 30, 2008 consisted of the following:
Statement of Net Assets:
Cash and investments $ 42,812,278
Cash and investments with fiscal agents 324,533
l
$ 43,136,811
Cash and investments held by the City at June 30, 2008 consisted of the following:
Ij
Imprest cash on hand $ 1,500
Demand deposits (overdraft) (65,765)
Escrow deposits 15,000
Investments:
U.S. Government Sponsored Enterprise Securities
Repurchase agreements
Local agency investment fund
Held by Bond Trustee:
Money Market Mutual Funds
See independent auditors' report.
-35-
8,000,000
892,584
33,983,959
309,533
$
43,136,811
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government_ Code and the Citv's Investment Policv:
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.
-36-
Maximum
Maximum
Maximum
Percentage
Investment
Authorized Investment Type
Maturity
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.
-36-
W-ftifflany-Mlly Is) 2 103
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
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.
Maximum
Percentage/ Maximum
Maximum
Amount Investment
Authorized Investment Type
Maturity
Allowed in One Issuer
U.S. Treasury Obligations
None
None None
U.S. Government Sponsored
Enterprise Securities
None
10% None
Banker's Acceptances
1 year
None None
Time Certificate of Deposits
None
None None
Local Agency Investment Fund
None
None None
Money Market Funds
None
None None
Repurchase Obligations
Tax Exempt
30 days
None None
Taxable Government Money
Market Portfolios
None
Equal to six None
months of
principal and
interest on
the bonds
Disclosures Relating to Interest Rate Risk:
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.
I :
-37-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk (Continued):
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:
Investment Type
U.S. Government Sponsored Enterprise
Securities
Repurchase Agreements
Local Agency Investment Fund
Held by Bond Trustee:
Money Market Mutual Funds
Disclosures Relating to Credit Risk:
Remaining Mat LjtV (in Months)
12 Months 13-24 25-60
or Less Months Months Total
$ - $ 1,000,000 $ 7,000,000 $ 8,000,000
892,584 - - 892,584
33,983,959 - - 33,983,959
309,533 - - 309,533
S 35 186:0761.000,000 S 7.000.000 $ 43,186.076
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 assignment 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:
N/A - Not Applicable
See independent auditors' report.
-38-
AAA Unrated
$ 8,000,000 $ -
- 892,584
309,533
$ 8,309.533
33,983,959
34.876,543
Total
Minimum
as of
Legal
Investment Type
June 30, 2008
Rating_
U.S. Government
Sponsored Enterprise
Securities
$ 8,000,000
N/A
Repurchase Agreements
892,584
N/A
Local Agency
Investment Fund
33,983,959
N/A
Held by Bond Trustee:
Money Market
Mutual Funds
309,533
AAA
Total
$ 43186.076
N/A - Not Applicable
See independent auditors' report.
-38-
AAA Unrated
$ 8,000,000 $ -
- 892,584
309,533
$ 8,309.533
33,983,959
34.876,543
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
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 party. 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 governmental 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, 2008, 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.
-39-
[$11WA[$
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
3. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
The composition of interftmd balances as of June 30, 2008, is as follows:
Due To/From Other Funds:
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 24�3660
The amounts loaned from the General Fund to the Other Governmental Funds are to provide a
short-term loan to fund temporary cash shortfalls.
Interfund Transfers:
Transfers In
General Fund
Park and Facility Development
Special Revenue Fund
Other Governmental Funds
Transfers Out Amount
Other Governmental Funds $ 1,439,832
Other Governmental Funds 1 26,825
General Fund
2,316,745
Park and Facility Development
Special Revenue Fund
1,719,236
Proposition 1B Bond
Special Revenue Fund
37,371
Other Governmental Funds
1,726,140
Internal Service Funds General Fund 342,600
$ 7.60&749
Transfers to the General Fund from the Other Governmental Funds were made to reimburse the
General Fund for various capital projects.
Transfers from the General Fund to the Other Governmental Funds were made to provide for debt
service payments and capital projects costs. 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.
-40-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
4. CAPITALASSETS:
A summary of changes in the Governmental Activities capital assets at June 30, 2008 is as follows:
Capital assets, not being depreciated:
Land
Right of way
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total capital assets
being depreciated
Less accumulated depreciation for:
Balance Balance at
July 1, 2007 Additions Deletions June 30, 2008
$ 6,206,190 $ - $ - $ 6,206,190
256,536,095 - - 256,536,095
1,322,219 1,486,532 (1,315,757) 1,492,994
264,064,504 1,486,532 (1,315,757) 264,235,279
23,931,012
177,143 -
24,108,155
68,505
1,829 -
70,334
1,548,567
194,891 (9,195)
1,734,263
179,389,923
1,175,692 (70,155)
180,495,460
204,938,007 1,549,555 (79,350) 206,408,212
Building and improvements
(7,428,095)
(1,484,600)
- (8,912,695)
j Furniture and fixtures
(59,690)
(2,952)
- (62,642)
Vehicles and equipment
(915,664)
(172,713)
7,192 (1,081,185)
Infrastructure
(72,221,872)
(4,457,449)
66,648 (76,612,673)
Total accumulated depreciation
(80,625,321)
(6,117,714)
73,840 (86,669,195)
Total capital assets
being depreciated, net
Total Governmental Activities
capital assets, net
124,312,686 (4,568,159) (5,510) 119,739,017
$ 388.377,190 $ (3,081,627) $ (1,321,267) $ 383,974,296
Depreciation expense was charged to functions in the Statement of Activities as follows:
General government
Public safety
Highways and streets
Community development
Parks, recreation and culture
Internal Service Funds depreciation
charges to program
See independent auditors' report.
-41-
$ 105,432
10,771
4,467,086
12,782
1,501,762
19,881
$ 6,117,714
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
5. LONG-TERM LIABILITIES:
Long-term liability activity for the year ended June 30, 2008, was as follows:
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, 2008, $13,025,000 of the bonds are outstanding.
In conjunction with the Bonds, the Authority executed a rate cap agreement on December 2, 2002
(the Agreement) with JPMorgan 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, 2008 the Agreement had a positive fair value of $71,950. 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, JPMorgan Chase, has the following credit ratings of. (i) Standard & Poor's, AA -
and (ii) Moody's, Aa2.
See independent auditors' report.
-42-
Beginning
Ending
Due Within
Balance Additions
Retirements
Balance—
One Year
Bonds payable:
Revenue bonds
$ 13,280,000 $
$ (255,000)
$ 13,025,000
$ 265,000
Unamortized discount
(119,210)
4,585
(114,625)
-
Compensated absences
331,065 322.377
(242,233)
411,209
250.000
Total
5 13.491.855 $3_2_2 =3
$ (491648)
$ 13.321.584
L--5-15000
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, 2008, $13,025,000 of the bonds are outstanding.
In conjunction with the Bonds, the Authority executed a rate cap agreement on December 2, 2002
(the Agreement) with JPMorgan 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, 2008 the Agreement had a positive fair value of $71,950. 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, JPMorgan Chase, has the following credit ratings of. (i) Standard & Poor's, AA -
and (ii) Moody's, Aa2.
See independent auditors' report.
-42-
CITY OF DIAMOND BAR
NOTES. TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
5. LONG-TERM LIABILITIES (CONTINUED):
Bonds Payable (Continued):
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.
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, 2008, the Agreement had a positive fair value of $71,950.
Payments and Associated Debt:
Using a variable rate of 2.730% as of June 30, 2008, 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.
See independent auditors' report.
-43-
Variable Rate Debt
Counter-
Net
Year Ending
party
Debt
June 30,
Principal
Interest
Total
Payments
Service
I' 2009
$ 265,000
$ 355,583 $
620,583
$ 230,542
$ 851,125
2010
280,000
348,348
628,348
225,852
854,200
2011
290,000
340,704
630,704
220,896
851,600
2012
305,000
332,787
637,787
215,763
853,550
2013
320,000
324,461
644,461
210,364
854,825
2014-2018
1,835,000
1,482,937
3,317,937
961,463
4,279,400
2019-2023
2,310,000
1,207,889
3,517,889
783,136
4,301,025
2024-2028
2,910,000
861,180
3,771,180
558,345
4,329,525
2029-2033
3,670,000
424,379
4,094,379
275,146
4,369,525
2034
840,000
22,932
862,932
14,868
877,800
13,025,000
$ 5,701,200 $ 18,726,200
$ 3,696,375
$ 21422,575
Compensated Absences:
The City's policies
relating to compensated absences
are described in Note 1.
This liability,
amounting to $407,988
at June 30, 2008, is expected
to be paid in future years from future
�. resources, typically liquidated
from the General Fund.
See independent auditors' report.
-43-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
,6'. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION:
The City is a member of the California Joint Powers Insurance Authority (the Insurance Authority).
The Insurance Authority is composed of 119 California public entities and is organized under a
joint powers agreement pursuant to California Government Code Section 6500 et seq. The purpose
of the Insurance 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 Insurance 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 Liabilitv
Each member government pays a primary deposit to cover estimated losses for a fiscal year
(claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Claims are pooled separately
between police and nonpolice. Costs are spread to members as follows: the first $30,000 of
each occurrence is charged directly to the member's primary deposit; costs from $30,000 to
$750,000 and the loss development reserves associated with losses up to $750,000 are pooled
based on the member's share of losses under $30,000. Losses from $750,000 to $5,000,000
and the associated loss development reserves are pooled based on payroll. Costs of covered
claims from $5,000,000 to $50,000,000 are currently paid by excess insurance. Costs of
covered claims for subsidence losses from $15,000,000 to $25,000,000 are paid by excess
insurance. The protection for each member is $50,000,000 per occurrence and $50,000,000
annual aggregate. Administrative expenses are paid from the Insurance Authority's investment
earnings.
Workers' Compensation
The City also participates in the workers compensation pool administered by the Insurance
Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year
(claims year). After the close of a fiscal year, -outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Claims are pooled separately
between public safety and non-public safety.
See independent auditors' report. -44-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTIZJUED):
a. Self -Insurance Programs of the Authority (Continued):
Workers' Compensation (Continued)
Each member has a retention level of $50,000 for each loss and this is charged directly to the
member's primary deposit. Losses from $50,000 to $100,000 and the loss development reserve
associated with losses up to $100,000 are pooled based on the member's share of losses under
$50,000. Losses from $100,000 to $2,000,000 and employer's liability losses from $5,000,000
to $10,000,000 and loss development reserves associated with those losses are pooled based on
payroll. Losses from $2,000,000 to $5,000,000 are pooled with California State Association of
Counties - Excess Insurance Authority members. Costs from $2,000,000 to $300,000,000 are
transferred to reinsurance carriers. Costs in excess of $300,000,000 are pooled among the
Members based on payroll. Protection is provided per statutory liability under California
Workers' Compensation law. Administrative expenses are paid from the Insurance Authority's
investment earnings.
b. Purchased Insurance:
Environmental Insurance
The City participates in the pollution legal liability and remediation legal liability insurance
which is available through the Insurance Authority. This policy covers sudden and gradual
pollution of scheduled properly, 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 July 1, 2008. Each member of the
Insurance Authority has a $10,000,000 limit during the 3 -year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the Insurance Authority.
j 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
Insurance Authority. The City's property currently has all-risk property insurance protection in
the amount of $17,659,518. There is a $5,000 deductible per occurrence except for
non -emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage
are paid annually and are not subject to retroactive adjustments.
See independent auditors' report.
-45-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
6.. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED):
b. Purchased Insurance (Continued):
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with $2,500
deductible. The fidelity coverage is provided through the Insurance Authority. Premiums are
paid annually and are not subject to retroactive adjustments.
c. Adequacy of Protection:
During the past three fiscal (claims) years none of the above programs of protection have had
settlements or judgments that exceed pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
The aforementioned information is not included in the accompanying financial statements.
Complete financial statements for the Authority may be obtained at their administrative office
located at 8081 Moody Street, La Palma, California 90623.
7. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES:
Deficit Fund Balance
The following fund reported a deficit fund balance at June 30, 2008:
Other Governmental Fund:
Capital Improvement Capital Projects Fund
$ 361,238
The Capital Improvement Capital Projects Fund deficit will be funded with various government
grants in future years.
See independent auditors' report.
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
8. PENSION PLAN:
Plan Description:
The City of Diamond Bar participates in the Miscellaneous 2% at 55 Risk Pool of the California
Public Employee's Retirement System (PERS), a cost-sharing, multiple -employer defined benefit
pension plan administered by PERS. PERS provides retirement and disability benefits, annual
cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefit
provisions and all other requirements are established by State statue and District ordinance. Copies
of the PERS' annual financial report may be obtained from the PERS Executive Office -
400 P Street, Sacramento, California 95814.
Funding Plic
p�
The contribution requirements of the plan members are established by State statute and the
employer contribution rate is established and may be amended by PERS. Active City employees
are required to contribute 7% of their annual covered salary to PERS. The city makes the
contributions,required of City employees on their behalf and for their account. The City is required
to contribute the actuarially determined remaining amounts necessary to fund the benefits for its
members. The current rate is 10.91% of covered payroll. The City's contributions to CalPERS for
the years ending June 30, 2008, 2007 and 2006 were $373,818, $344,320 and $304,107,
respectively and were equal to the required contribution for each year.
The City is presently involved in other matters of litigation that have arisen in the normal course of
the City's business. City management believes, based upon consultation with the City Attorney,
that these cases, in the aggregate, are not expected to have a material adverse financial impact on
the City.
See independent auditors' report.
-47-
NIMI)WRIGIUVISIN -70.1"941
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2008
10. CONSTRUCTION COMMITMENTS:
The following material construction commitments existed at June 30, 2008:
Project Name
Park Improvements
Street Improvements
Miscellaneous Capital Improvements
Traffic Signals
Landscape and Irrigation Improvements
11. OPERATING LEASES:
Expenditures as of Remaining
June 30, 2008 Commitments
172,189 $ 560,005
959,445 3,207,660
14,725 56,227
656,262 595,871
48,969 103,494
1,851,590 A- $ 4,523.257
The City leases building and office facilities under noncancelable operating leases. The total costs
for such leases were $261,727 for the year ended June 30, 2008. The future minimum lease
payments for the lease of building and office facilities are as follows:
Year Ending
June 30,
2009
2010
2011
Total
See independent auditors' report.
NEM
$ 264,151
268,997
179,332
�712480
REQUIRED SUPPLEMENTARY INFORMATION
THIS PAGE LEFT BLANK INTENTIONALLY
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
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.
jPark and Facility Development Fund - This fund is used to account for the development and
enhancement of the City's parks.
Proposition 1B Bond Fund -This fund is used to account for the receipt and expenditures of
Proposition 1B Bond funds from the State of California.
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
REVENUES:
Taxes
Intergovernmental revenue
Fines and forfeitures
Licenses, permits and fees
Investment income
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
General government:
City Council
City Manager/Clerk
City Attorney
Finance
Human resources
Information systems
General government
Public information
Subtotal general government
Public safety:
Law enforcement
Fire protection
Animal control
Emergency preparedness
Subtotal public safety
Highways and streets
Parks, recreation and culture
Community development
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 BALANCE
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 9,745,000
$ 9,764,500
$ 10,165,881
$ 401,381
4,253,525
4,952,000
4,611,368
(340,632)
527,500
508,000
637,484
129,484
4,916,303
3,093,143
2,947,476
(145,667)
750,000
750,000
1,343,002
593,002
1,882,050
1,977,730
826,177
(1,151,553)
22,074,378
21,045,373
20,531,388
(513,985)
175,640
195,640
160,924
34,716
953,690
1,001,325
868,489
132,836
240,000
250,000
197,252
52,748
407,800
448,423
427,354
21,069
243,620
255,270
183,622
71,648
930,910
1,324,837
942,620
382,217
1,684,150
1,585,759
720,124
865,635
513,290
539,290
487,271
52,019
5,149,100
5,600,544
3,987,656
1,612,888
5,342,750
5,379,750
4,809,457
570,293
16,360
16,360
2,888
13,472
105,600
120,600
100,909
19,691
43,290
43,290
14,123
29,167
5,508,000
5,560,000
4,927,377
632,623
2,716,310
3,059,460
2,511,382
548,078
3,938,745
3,979,975
3,714,762
265,213
2,467,360
2,843,363
1,702,734
1,140,629
19,779,515
21,043,342
16,843,911
4,199,431
2,294,863
2,031
3,687,477
3,685,446
1,518,420
1,666,054
1,439,832
(226,222)
(3,201,042)
(3,181,042)
(2,659,345)
521,697
(1,682,622)
(1,514,988)
(1,219,513)
295,475
612,241
(1,512,957)
2,467,964
3,980,921
FUND BALANCE - BEGINNING OF YEAR 30,461,550 30,461,550 30,461,550 -
FUND BALANCE - END OF YEAR $ 31,073,791 $ 28,948,593 $ 32,929,514 $ 3,980,921
See independent auditors' report and note to required supplementary information.
-50-
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PARK AND FACILITY DEVELOPMENT SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
Licenses, permits and fees
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
Capital outlay
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 BALANCE
I0i Z I tjM1r0): a`►9 oxels'/m
For the year ended June 30, 2008
See independent auditors' report and note to required supplementary information.
-51-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 123,938
$ 1,206,433
$ 1,062,895
$ (143,538)
130,500
130,500
174,000
43,500
86,000
86,000
67,477
(18,523)
340,438
1,422,933
1,304,372
(118,561)
90,000
154,500
17,791
136,709
186,650
186,650
-
186,650
276,650
341,150
17,791
323,359
63,788
1,081,783
1,286,581
204,798
26,825
26,825
26,825
-
(503,588)
(1,742,956)
(1,719,236)
23,720
(476,763)
(1,716,131)
(1,692,411)
23,720
(412,975)
(634,348)
(405,830)
228,518
1,708,275
1,708,275
1,708,275
-
$ 1,295,300
$ 1,073,927
$ 1,302,445
$ 228,518
See independent auditors' report and note to required supplementary information.
-51-
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION 1B BOND SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ $ 968,389 $ 37,371 $ (931,018)
10,000 7,822 (2,178)
978,389 45,193 (933,196)
(978,389) (37,371) 941,018
7,822 7,822
See independent auditors' report and note to required supplementary information.
-52-
7,822 $ 7,822
CITY OF DIAMOND BAR
June 30, 2008
1. BUDGETS AND BUDGETARY ACCOUNTING:
The City adheres to the following general procedures in establishing its annual budget, which is
reflected in the accompanying 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 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. Annual budges are not adopted for the Debt Service
Funds.
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, 2008, supplemental appropriations in the amount of $5,825,493 were made.
i 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
year end lapse, and then are added to the following year's budgeted appropriations. However,
encumbrances at year-end are reported as reservations of fund balance.
See independent auditors' report.
-53-
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-54-
4 0 w w 9 X N -1"L - r,"Ill - Is Q WORM El 4 0 W �
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f`
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
I
June 30, 2008
(
Debt
Capital
Service Fund
Projects Fund
Total
f
Special
Public
Capital
Other
Revenue
Financing
Improvement
Governmental
Funds
Authority
Fund
Funds
ASSETS
Cash and investments
$
4,059,689
$ -
$ 206,540
$
4,266,229
Cash and investments with fiscal agents
-
309,533
-
309,533
Accounts receivable
60,990
-
-
60,990
Due from other governments
496,650
70,234
566,884
Notes receivable
230,435
230,435
TOTAL ASSETS
$
4,847,764
$ 309,533
$ 276,774
$
5,434,071
LIABILITIES AND FUND BALANCES
'I LIABILITIES:
Accounts payable
$
583,703
$ -
$ 482,854
$
1,066,557
Accrued payroll
4,514
-
-
4,514
Due to other funds
243,660
-
-
243,660
I Deferred revenue
1,599
-
70,234
71,833
Retentions payable
5,913
-
84,924
90,837
Advances from other governments
204,989
-
-
204,989
TOTAL LIABILITIES
1,044,378
-
638,012
1,682,390
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
13,515
-
5,342,616
5,356,131
j Debt service
-
309,533
-
309,533
Unreserved reported in:
Special revenue funds
3,789,871
-
-
3,789,871
Capital projects fund
-
-
(5,703,854)
(5,703,854)
TOTAL FUND
BALANCES (DEFICIT)
3,803,386
309,533
(361,238)
3,751,681
l
1 TOTAL LIABILITIES
AND FUND BALANCES
$
4,847,764
$ 309,533
$ 276,774
$
5,434,071
�I
See independent auditors' report.
-55-
THIS PAGE LEFT BLANK INTENTIONALLY
SWM
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANCES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2008
l
See independent auditors' report.
l -57-
Debt
Capital
Service Fund
Project Fund
Total
(
Special
Public
Capital
Other
Revenue
Financing
Improvement
Governmental
Funds
Authority
Fund
Funds
REVENUES:
Special assessments
$ 543,561
$ -
$ -
$ 543,561
Intergovernmental revenue
3,683,434
-
501,880
4,185,314
Charges for services
1,111,655
-
-
1,111,655
Investment income
205,964
4,992
-
210,956
TOTAL REVENUES
5,544,614
4,992
501,880
6,051,486
j(
EXPENDITURES:
Current:
Public safety
6,581
-
-
6,581
f_
Highways and streets
2,415,036
-
-
2,415,036
Community development
525,971
-
-
525,971
Capital outlay
-
-
4,271,890
4,271,890
Debt service:
Principal
-
255,000
-
255,000
Interest and fiscal charges
-
411,583
-
411,583
TOTAL EXPENDITURES
2,947,588
666,583
4,271,890
7,886,061
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
2,597,026
(661,591)
(3,770,010)
(1,834,575)
OTHER FINANCING SOURCES (USES):
( Transfers in
-
649,377
5,150,115
5,799,492
Transfers out
(3,192,797)
(3,192,797)
TOTAL OTHER FINANCING
SOURCES (USES)
(3,192,797)
649,377
5,150,115
2,606,695
NET CHANGE IN FUND BALANCES
(595,771)
(12,214)
1,380,105
772,120
1 FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR
4,399,157
321,747
(1,741,343)
2,979,561
FUND BALANCES (DEFICIT) -
END OF YEAR
$ 3,803,386
$ 309,533
$ (361,238)
$ 3,751,681
l
See independent auditors' report.
l -57-
Icy Il 0 i �'� /'+ ►t l" lU 1
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 (ISTEA) 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 Improvement Fund - This fund is used to account for funds received and designated by the City
Council specifically for traffic improvements.
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.
Trails & Bikeways Fund - This fund is used to account for the State SB821 revenue received for the
specific purpose of the construction of bike and pedestrian paths.
California Law 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.
-58-
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
Proposition A Transit Fund - This fund is used to account for the receipt and expenditure of the City's
share of the Y2cent sales tax levied'in Los Angeles County for local transit purposes.
Communily 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
Development Commission. These funds are used to fund community development programs and
projects benefiting low and moderate income citizens.
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 fund is 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.
Landscgpe 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.
See independent auditors' report.
-60-
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER
SPECIAL REVENUE
FUNDS
June 30, 2008
Proposition
Integrated
Traffic
State
C
Waste
Traffic
Congestion
Gas Tax
Transit
ISTEA
Management
Improvement
Relief
ASSETS
Cash and investments
$
-
$ 1,526,646 $
-
$ 220,977
$ 370,770
$ -
Accounts receivable
-
-
-
46,656
-
-
Due from other governments
349,037
-
1,599
-
-
-
Notes receivable
-
-
-
25,446
-
-
TOTAL ASSETS
$
349,037
$ 1,526,646 $
1,599
$ 293,079
$ 370,770
$ -
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable
$
-
$ - $
-
$ 18,276
$ -
$ -
Accrued payroll
-
-
-
1,715
-
-
Due to other funds
182,152
-
-
-
Deferred revenue
-
-
1,599
-
-
-
Retentions payable
-
-
-
Advances from other
governments
-
_
_
_
TOTAL LIABILITIES
182,152
-
1,599
19,991
-
-
FUND BALANCES:
Reserved for:
Encumbrances
-
-
-
_
Unreserved
166,885
1,526,646
-
273,088
370,770
-
TOTAL FUND
BALANCES
166,885
1,526,646
-
273,088
370,770
-
TOTAL LIABILITIES
AND FUND BALANCES
$
349,037
$ 1,526,646 $
1,599
$ 293,079
$ 370,770
$ -
See independent auditors' report.
-60-
$ 106,951 $ 9,756 $ 80,106 $1,095,262 $ 321,490 $ 76,296 $ 357,126 $ 259,646 $ 4,847,764
$ 3,398 $ - $ - $ 389,331 $ 48,622 $ 995 $ - $ 123,081 $ 583,703
- - - 2,343 456 - - - 4,514
_ - 61,508 - - - 243,660
- _ _ - 1,599
5,913 - - - 5,913
- _ _ - 204,989 - - - 204,989
3,398 - - 391,674 321,488 995 - 123,081 1,044,378
10,756 - - - - - - 2,759 13,515
` 92,797 9,756 80,106 703,588 2 75,301 357,126 133,806 3,789,871
l
103,553 9,756 80,106 703,588 2 75,301 357,126 136,565 3,803,386
I
$ 106,951 $ 9,756 $ 80,106 $1,095,262 $ 321,490 $ 76,296 $ 357,126 $ 259,646 $ 4,847,764
I'
l i
�.. _
-61-
I
Total
Air .
Proposition
Landscape
Other
Quality Trails &
A
Asset Maintenance
Special
Improvement Bikeways
CLEEP Transit
CDBG COPS Seizure District
Revenue Funds
$ 88,161 $ 9,756
$ 80,106 $1,080,928
$ - $ 76,296 $ 357,126 $ 248,923
$ 4,059,689
- -
- 14,334
- - - -
60,990
18,790 -
- -
116,501 - - 10,723
496,650
- -
- -
204,989 - - -
230,435
$ 106,951 $ 9,756 $ 80,106 $1,095,262 $ 321,490 $ 76,296 $ 357,126 $ 259,646 $ 4,847,764
$ 3,398 $ - $ - $ 389,331 $ 48,622 $ 995 $ - $ 123,081 $ 583,703
- - - 2,343 456 - - - 4,514
_ - 61,508 - - - 243,660
- _ _ - 1,599
5,913 - - - 5,913
- _ _ - 204,989 - - - 204,989
3,398 - - 391,674 321,488 995 - 123,081 1,044,378
10,756 - - - - - - 2,759 13,515
` 92,797 9,756 80,106 703,588 2 75,301 357,126 133,806 3,789,871
l
103,553 9,756 80,106 703,588 2 75,301 357,126 136,565 3,803,386
I
$ 106,951 $ 9,756 $ 80,106 $1,095,262 $ 321,490 $ 76,296 $ 357,126 $ 259,646 $ 4,847,764
I'
l i
�.. _
-61-
I
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2008
EXPENDITURES:
Current:
Public safety - -
Highways and streets - -
Community development - -
TOTAL EXPENDITURES - -
EXCESS OF REVENUES
OVER (UNDER)
EXPENDITURES 1,062,321 864,416
OTHER FINANCING USES:
251,120
251,120
12,340 44,304 16,336 17,546
Transfers out
(1,136,695)
Proposition
Integrated
Traffic
State
C
Waste Traffic
Congestion
Gas Tax
Transit
ISTEA Management Improvement
Relief
REVENUES:
(12,560) (442,069)
FUND BALANCES (DEFICIT) -
Special assessments
$ -
$ -
$ - $
$
Intergovernmental revenue
1,049,504
794,267
12,340 72,776
Charges for services
-
-
- 208,604
166.885
Investment income
12,817
70,149
- 14,044 16,336
17,546
TOTAL REVENUES
1,062,321
864,416
12,340 295,424 16,336
17,546
EXPENDITURES:
Current:
Public safety - -
Highways and streets - -
Community development - -
TOTAL EXPENDITURES - -
EXCESS OF REVENUES
OVER (UNDER)
EXPENDITURES 1,062,321 864,416
OTHER FINANCING USES:
251,120
251,120
12,340 44,304 16,336 17,546
Transfers out
(1,136,695)
(869,424)
(12,340) (147,866)
(28,896) (459,615)
NET CHANGE IN
FUND BALANCES
(74,374)
(5,008)
- (103,562)
(12,560) (442,069)
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR
241,259
1,531,654
- 376,650
383,330 442,069
FUND BALANCES -
END OF YEAR
166.885
$1.526.646
$ - � 271 ORR
170 770 � -
See independent auditors' report.
-62-
660 - - 5,921 - - 6,581
- 1,855,286 - - - 559,750 2,415,036
81,251 - - - 193,600 - - - 525,971
81,251 - 660 1,855,286 193,600 5,921 - 559,750 2,947,588
(4,086)
36,581
2,650
41,758
378,668
116,507
Total
Air
2,597,026
Proposition
(26,825)
-
Landscape
Other
Quality
Trails &
A
(3,192,797)
Asset
Maintenance
Special
Improvement
Bikeways
CLEEP Transit CDBG
COPS
Seizure
District
Revenue Funds
9,756
2,650
2,528
61,212
$ -
$ -
$ - $ - $ -
$ -
$ -
$ 543,561
$ 543,561
71,909
36,569
- 953,944 572,268
115,773
4,084
-
3,683,434
-
-
- 903,051 -
-
-
-
1,111,655
5,256
12
3,310 40,049 -
6,655
14,536
5,254
205,964
$ 357,126
$ 136,565
$ 3,803,386
77,165
36,581
3,310 1,897,044 572,268
122,428
18,620
548,815
5,544,614
660 - - 5,921 - - 6,581
- 1,855,286 - - - 559,750 2,415,036
81,251 - - - 193,600 - - - 525,971
81,251 - 660 1,855,286 193,600 5,921 - 559,750 2,947,588
(4,086)
36,581
2,650
41,758
378,668
116,507
18,620
(10,935)
2,597,026
-
(26,825)
-
(39,230)
(317,456)
(154,450)
-
-
(3,192,797)
(4,086)
9,756
2,650
2,528
61,212
(37,943)
18,620
(10,935)
(595,771)
107,639
-
77,456
701,060
(61,210)
113,244
338,506
147,500
4,399,157
$ 103,553
$ 9,756
$ 80,106
$ 703,588
$ 2
$ 75,301
$ 357,126
$ 136,565
$ 3,803,386
-63-
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, 2008
REVENUES:
Intergovernmental revenue
Investment income
TOTALREVENUES
TES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-64-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 1,099,050
$ 1,099,050
$ 1,049,504
$ (49,546)
10,000
10,000
12,817
2,817
1,109,050
1,109,050
1,062,321
(46,729)
(1,259,970)
(1,259,970)
(1,136,695)
123,275
(150,920)
(150,920)
(74,374)
76,546
241,259
241,259
241,259
-
$ 90,339
$ 90,339
$ 166,885
$ 76,546
-64-
l
f_
1�
II
I
J
See independent auditors' report.
(.
-65-
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, 2008
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 810,000 $ 810,000 $
794,267
$ (15,733)
Investment income
45,000 45,000
70,149
25,149
TOTAL REVENUES
855,000 855,000
864,416
9,416
OTHER FINANCING USES:
Transfers out
(1,578,400) (1,801,400)
(869,424)
931,976
NET CHANGE IN FUND BALANCE (723,400) (946,400)
(5,008)
941,392
FUND BALANCE - BEGINNING
OF YEAR 1,531,654 1,531,654
1,531,654
-
FUND BALANCE - END OF
YEAR $ 808,254 $ 585,254 $
1,526,646
$ 941,392
l
f_
1�
II
I
J
See independent auditors' report.
(.
-65-
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, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental revenue $ 1,018,000 $ 768,000 $ 12,340 $ (755,660)
OTHER FINANCING USES:
Transfers out (1,018,000) (768,000) (12,340) 755,660
NET CHANGE IN FUND BALANCE -
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR $
See independent auditors' report.
-66-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
INTEGRATED WASTE MANAGEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original
Final
$ 45,000
$ 45,000 $
230,000
230,000
15,000
15,000
_
290,000
290,000
341,990
353,117
251,120 101,997
(51,990)
Variance with
44,304
Final Budget
(185,000)
Positive
Actual
(Negative)
72,776
$ 27,776
208,604
(21,396)
14,044
(956)
295,424
5,424
251,120 101,997
(51,990)
(63,117)
44,304
107,421
(185,000)
(185,000)
(147,866)
37,134
(236,990)
(248,117)
(103,562)
144,555
376,650
376,650
376,650
-
$ 139,660
$ 128,533
$ 273,088
$ 144,555
-67-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC IMPROVEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-68-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
$ 100,000
$ 100,000
$ -
$ (100,000)
15,000
15,000
16,336
1,336
115,000
115,000
16,336
(98,664)
(125,000)
(155,000)
(28,896)
126,104
(10,000)
(40,000)
(12,560)
27,440
383,330
383,330
383,330
-
$ 373,330
$ 343,330
$ 370,770
$ 27,440_
-68-
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND
REVENUES:
Investment income
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 10,000 $ 10,000 $ 17,546 $ 7,546
(438,000) (438,000) (459,615) (21;615)
(428,000) (428,000) (442,069) (14,069)
442,069 442,069 442,069 -
$ 14,069 $ 14,069 $ - $ (14,069)
-69-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
66,940 95,232 81,251 13,981
10,060 (18,232) (4,086) 14,146
107,639 107,639 107,639 -
$ 117,699 $ 89,407 $ 103,553 $ 14,146
-70-
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
$ 73,000 $ 73,000
$ 71,909
$ (1,091)
4,000 4,000
5,256
1,256
77,000 77,000
77,165
165
66,940 95,232 81,251 13,981
10,060 (18,232) (4,086) 14,146
107,639 107,639 107,639 -
$ 117,699 $ 89,407 $ 103,553 $ 14,146
-70-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAILS & BIKEWAYS SPECIAL REVENUE FUND
For the year ended June 30, 2008
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 53,672 $ 53,672 $
53,672 53,672
Variance with
Final Budget
Positive
Actual (Negative)
36,569 $ (17,103)
12 12
36,581 (17,091)
(53,672) (53,672) (26,825) 26,847
9,756 9,756
-71-
9,756 $ 9,756
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, 2008
See independent auditors' report.
-72-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Investment income
$ 3,000
$ 3,000
$ 3,310
$ 310
EXPENDITURES:
Current:
Public safety
78,688
78,688
660
78,028
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(75,688)
(75,688)
2,650
78,338
FUND BALANCE - BEGINNING OF YEAR
77,456
77,456
77,456
-
FUND BALANCE - END OF YEAR
$ 1,768
$ 1,768
$ 80,106
$ 78,338
See independent auditors' report.
-72-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION A TRANSIT SPECIAL REVENUE FUND
For the year ended June 30, 2008
f
(_ l
See independent auditors' report.
(_ -73-
I
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 970,000
$ 970,000
$ 953,944
$ (16,056)
Charges for services
750,000
915,000
903,051
(11,949)
Investment income
40,000
40,000
40,049
49
TOTAL REVENUES
1,760,000
1,925,000
1,897,044
(27,956)
IEXPENDITURES:
Current:
Highways and streets
1,606,070
1,906,070
1,855,286
50,784
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
153,930
18,930
41,758
22,828
OTHER FINANCING USES:
Transfers out
(90,000)
(90,000)
(39,230)
50,770
NET CHANGE IN FUND BALANCE
63,930
(71,070)
2,528
73,598
FUND BALANCE - BEGINNING OF YEAR
I
701,060
701,060
701,060
-
FUND BALANCE - END OF YEAR
$ 764,990
$ 629,990
$ 703,588
$ 73,598
f
(_ l
See independent auditors' report.
(_ -73-
I
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, 2008
See independent auditors' report.
-74-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 472,775
$ 472,775
$ 572,268
$ 99,493
EXPENDITURES:
Current:
Community development
230,944
230,944
193,600
37,344
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
241,831
241,831
378,668
136,837
OTHER FINANCING USES:
Transfers out
(241,831)
(241,831)
(317,456)
(75,625)
NET CHANGE IN FUND BALANCE
-
-
61,212
61,212
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
(61,210)
(61,210)
(61,210)
-
FUND BALANCE - END OF YEAR
$ (61,210)
$ (61,210)
$ 2
$ 61,212
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, 2008
See independent auditors' report.
-75-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 117,000
$ 117,000
$ 115,773
$ (1,227)
Investment income
6,000
6,000
6,655
655 '
TOTAL REVENUES
123,000
123,000
122,428
(572)
EXPENDITURES:
Current:
Public safety
7,900
7,900
5,921
1,979
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
115,100
115,100
116,507
1,407
OTHER FINANCING USES:
Transfers out
(194,450)
(194,450)
(154,450)
40,000
NET CHANGE IN FUND BALANCE
(79,350)
(79,350)
(37,943)
41,407
FUND BALANCE - BEGINNING OF YEAR
113,244
113,244
113,244
-
FUND BALANCE - END OF YEAR
$ 33,894
$ 33,894
$ 75,301
$ 41,407
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, 2008
See independent auditors' report. -76-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ -
$ -
$ 4,084
$ 4,084
Investment income
20,000
20,000
14,536
(5,464)
TOTAL REVENUES
20,000
20,000
18,620
(1,380)
EXPENDITURES:
Current:
Public safety
50,500
50,500
-
50,500
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(30,500)
(30,500)
18,620
49,120
FUND BALANCE - BEGINNING OF YEAR
338,506
338,506
338,506
FUND BALANCE - END OF YEAR
308,006
$ 308,006
$ 357,126
$ 49,120
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, 2008
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Special assessments
$ 551,562 $ 551,562 $
543,561
$ (8,001)
Investment income
7,000 7,000
5,254
(1,746)
TOTAL REVENUES
558,562 558,562
548,815
(9,747)
EXPENDITURES:
Current:
Highways and streets
691,009 701,859
559,750
142,109
i EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(132,447) (143,297)
(10,935)
132,362
FUND BALANCE - BEGINNING OF YEAR
147,500 147,500
147,500
-
FUND BALANCE - END OF YEAR
$ 15,053 $ 4,203 $
136,565
$ 132,362
ll
l
See independent auditors' report.
f__
-77-
THIS PAGE LEFT BLANK INTENTIONALLY
OTHER CAPITAL PROJECTS FUND
The 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).
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.
-79-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
For the year ended June 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Intergovernmental revenue $ 1,476,718 $ 1,520,368 $ 501,880 $ (1,018,488)
Licenses, permits and fees 250,000 255,000 - (255,000)
TOTAL REVENUES 1,726,718 1,775,368 501,880 (1,273,488)
EXPENDITURES:
Capital outlay
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) -
END OF YEAR
See independent auditors' report.
8,734,651 12,881,548 4,271,890 8,609,658
(7,007,933) (11,106,180) (3,770,010) 7,336,170
7,007,933 9,081,056 5,150,115 (3,930,941)
- (2,025,124) 1,380,105 3,405,229
(1,741,343) (1,741,343) (1,741,343) -
$ (1,741,343) $ (3,766,467) $ (361,238) $ 3,405,229
-80-
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.
CITY OF DIAMOND BAR
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30, 2008
See independent auditors' report.
-82-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
ASSETS
CURRENT ASSETS:
Cash and investments
$ 1,498,599
$ 222,381
$ 361,067
$ 2,082,047
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
-
182,206
29,374
211,580
Less accumulated depreciation
-
(135,958)
(11,416)
(147,374)
TOTAL NONCURRENT ASSETS
-
46,248
17,958
64,206
TOTAL ASSETS
1,498,599
268,629
379,025
2,146,253
LIABILITIES
CURRENT LIABILITIES:
Accounts payable
473,588
-
5,062
478,650
NET ASSETS
Invested in capital assets
-
46,248
17,958
64,206
Unrestricted
1,025,011
222,381
356,005
1,603,397
TOTAL NET ASSETS
$ 1,025,011
$ 268,629
$ 373,963
$ 1,667,603
See independent auditors' report.
-82-
See independent auditors' report.
�._,� -83-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2008
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
OPERATING EXPENSES:
L Insurance premiums
$ 285,105
$ -
$ -
$ 285,105
Maintenance and operations
-
-
4,898
4,898
r- Depreciation
-
19,881
-
19,881
TOTAL OPERATING EXPENSES
285,105
19,881
4,898
309,884
OPERATING LOSS
(285,105)
(19,881)
(4,898)
(309,884)
NONOPERATING REVENUES:
i Investment income
56,218
8,396
8,381
72,995
INCOME (LOSS) BEFORE TRANSFERS (228,887)
(11,485)
3,483
(236,889)
TRANSFERS IN
150,060
18,150
174,450
342,600
CHANGE IN NET ASSETS
(78,887)
6,665
177,933
105,711
TOTAL NET ASSETS -
BEGINNING OF YEAR
1,103,898
261,964
196,030
1,561,892
TOTAL NET ASSETS - END OF YEAR
$ 1,025,011
$ 268,629
$ 373,963
$ 1,667,603
See independent auditors' report.
�._,� -83-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2008
Self- Equipment Computer
Insurance Replacement Replacement
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance payments $ (318,280) $ - $
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds 150,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets -
CASH FLOWS FROM INVESTING ACTIVITIES:
$ (318,280)
18,150 174,450 342,600
(17,794) (17,794)
Investment income
56,218
8,396
8,381
72,995
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
(112,062)
26,546
165,037
79,521
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
1,610,661
195,835
196,030
2,002,526
CASH AND CASH EQUIVALENTS -
END OF YEAR
$ 1,498,599 $
222,381 $
361,067
$ 2,082,047
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
$ (285,105) $
(19,881) $
(4,898)
$ (309,884)
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation
19,881
-
19,881
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable
(33,175)
-
4,898
(28,277)
NET CASH USED BY
OPERATING ACTIVITIES
$ (318,280) $
$
-
$ (318,280)
See independent auditors' report.
-84-
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2008
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.
Contents:
Pages
Financial Trends - These schedules contain trend information to help the
reader understand how the City's financial performance and well-being have
changed over time. 86-93
Revenue Capacity - These schedules contain information to help the reader
assess the City's most significant local revenue source, the property tax. 94-97
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
I ability to issue additional debt in the future. 98-100
Demographic and Economic Information - These schedules offer demographic
and economic indicators to help the reader understand the environment within
which the City's financial activities take place. 101-102
Operating Information - These schedules contain service and infrastructure
data to help the reader understand how the information in the City's financial
report relates to the services the City provides and the activities it performs. 103-105
City of Diamond Bar
Net Assets by Component
Last Six Fiscal Years
(accrual basis of accounting)
Governmental activities:
Invested in capital assets, net of related debt (1)
Restricted for:
Debt service
Capital projects
Specific programs
Unrestricted
Total governmental activities net assets
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.
(1) As allowed by GASB 34, the value of infrastructure placed in service prior to July 1, 2002 was not included
in the net assets until the fiscal year ended June 30, 2007.
Source: City Finance Department
-86-
Fiscal Year Ended June 30,
2007 2008
$ 375,216,400 $ 370,949,296
321,747 309,533
3,446,872 2,912,276
1,013,495 889,176
34,072,884 36,236,504
$ 414,071,398 $ 411,296,785
-87-
City of Diamond Bar
Changes in Net Assets
Last Six 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
-88-
Fiscal Year Ended June 30,
2003
2004
2005
2006
Expenses:
Governmental activities:
General government
$ 3,315,082
$ 3,713,530
$ 3,997,319
$ 4,203,123
Public safety
4,988,449
4,875,823
4,969,183
5,418,005
Highways and streets
1,006,768
1,365,737
4,622,014
5,240,568
Community development
3,370,116
5,724,606
1,050,025
2,759,718
Parks, recreation and culture
2,309,150
2,580,454
3,814,887
3,737,071
Interest and fiscal charges
535,752
171,223
270,735
423,320
Total expenses
15,525,317
18,431,373
18,724,163
21,781,805
Program revenues:
Governmental activities:
Charges for services:
General government
74,805
225,656
486,925
707,272
Public safety
813,617
733,902
1,159,264
1,277,170
Highways and streets
517,930
529,330
1,328,637
1,555,993
Community development
908,330
933,985
7,888
16,841
Parks, recreation and culture
558,227
610,772
1,147;088
1,260,849
Operating grants and contributions
4,390,722
4,068,446
4,040,785
5,281,308
Capital grants and contributions
1,779,510
261,994
-
1,150
Total program revenues
9,043,141
7,364,085
8,170,587
10,100,583
General revenues:
Taxes:
Property taxes
2,692,723
2,682,872
3,155,723
6,769,553
Transient occupancy taxes
578,680
628,564
717,879
718,889
Sales taxes
2,965,292
3,167,901
2,645,096
2,964,877
Property taxes in lieu of sales taxes
-
-
863,245
984,472
Franchise taxes
828,242
912,531
941,319
996,567
Property transfer tax
367,638
367,464
413,247
416,423
Other taxes
34,989
35,077
35,283
35,522
Unrestricted motor vehicle in lieu
3,370,387
2,716,134
4,386,800
413,230
Investment income
439,455
182,069
532,091
1,051,922
Other revenue
84,795
250,250
676,292
361,622
Total general revenues
11,362,201
10,942,862
14,366,975
14,713,077
Change in net assets
$ 4,880,025
$ (124,426)
$ 3,813,399
$ 3,031,855
* 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
-88-
Fiscal Year Ended June 30,
2007
2008
$ 4,784,314
$ 4,473,666
4,876,435
4,944,729
14,019,550
12,034,669
- 2,292,757
2,251,196
4,779,588
5,188977
498,042
392,548
31,250,686 29,285,785
262,541
225,553
1,512,195
1,176,931
3,493,798
2,851,187
21,297
23,351
1,385,788
1,581,597
6,968,824
4,307,074
1,254,314
219,193
14,898,757 10,384,886
7,727,580
8,194,270
774,757
800,390
2,935,703
3,114,562
1,007,642
987,615
1,064,621
1,024,710
331,096
283,433
33,822
33,865
350,194
262,064
1,476,010
1,420,989
41,362
4,388
15,742,787 16,126,286
$ (609,142) $ (2,774,613)
-89-
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 Six 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
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 six years of data for this schedule.
Source: City Finance Department
-90-
Fiscal Year Ended June 30,
2007 2008
$ 1,893,287 $ 1,864,387
28,568,263 31,065,127
30,461,550 32,929,514
3,311,451 5,810,250
6,058,113 4,955,552
(4,681,728) (5,703,854)
4,687,836 5,061,948
$ 35,149,386 $ 37,991,462
-91-
City of Diamond Bar
Changes in Fund Balances, Governmental Funds
Last Six Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Fines and forfeitures
Licenses and permits
Investment income
Otherrevenues
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
593J78
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
20,313,653
18,198,854
21,874,774
24,726,977
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
24,826,786
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)
$ 2,873,549
$ (584,921)
7.48%
0.82%
1.38%
3.18%
The City has elected to show only six years of data for this schedule.
Source: City Finance Department
-92-
Fiscal Year Ended June 30,
2007 2008
$ 9,876,760
$ 10,165,881
541,382
543,561
11,169,052
9,896,948
1,002,210
1,111,655
546,902
637,484
4,247,626
3,121,476
1,716,194
1,629,257
767,457
826,177
29,867,583
27,932,439
4,402,235
3,987,656
4,880,290
4,933,958
5,114,274
4,926,418
3,475,549
3,714,762
2,292,757
2,246,496
5,344,935
4,271,890
240,000
255,000
493,840
411,583
26,243,880
24,747,763
3,623,703
3,184,676
6,030,764 7,266,149
(6,354,106) (7,608,749)
(323,342) (342,600)
$ 3,300,361 $ 2,842,076
2.91% 2.89%
-93-
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
Total
Ended
Net
Tax
Direct
June 30,
Secured
Unsecured
Nonunitary *
Taxable Values
Exemptions
Rate
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%
2007
6,331,041,269
90,751,985
134,088
6,421,927,342
28,682,577
0.0519%
2008
6,784,318,579
109,704,881
-
6,894,023,460
39,859,238
0.0519%
$8,000,000,000
$7,000,000,000
$6,000,000,000
$5,000,000,000
Cn
_o $4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
Net Assessed Value
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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.
* Prior to 2007, all SBE Nonunitary Railroad Properties were taxed at the tax rate area level. As of 2007, there was
legislation passed that requires Counties to track this value for the each county in a specific tax rate area and it's
distributed differently. Therefore from this year forward, Cities can no longer keep tracking how much value there
is on railroad properties within each City.
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)
Mt S Antonio Ccd Ds 2005 Ref Bds
2007/08
Mt S Antonio Ccd Ds 01, 06 Ser C
Tax Rate
Mt San Antonio Ccd Ds 2001 S-A
Table
Direct Rates:
0.00503
Direct Rates:
0.05294
Overlapping Rates:
0.04116
Children's Institutional Tuition Fund
0.00271
Consolidated Fire Protection
0.16936
County Lighting Maintenance
0.02016
County Sanitation Dist 21
0.01221
County scholl service - Walnut Valley
0.00894
Development Ctr Handicapped Minor
0.00083
Educational Augmentation Fund
0.21072
LA County Library
0.02237
LA County Capital Outlay
0.00011
LA County Fire
0.00616
LA County Flood Control
0.01094
LA County General
0.24908
Mt San Antonio Children's Center
0.00028
Mt San Antonio Community College
0.02926
Southeast Mosquito Abatement
0.00035
Three Valley Municipal Water
0.00409
Walnut Valley Unified School Dist
0.19057
Walnut Valley Water Dist
0.00892
Total Prop. 13 Rate
1.0000
Mt S Antonio Ccd Ds 2005 Ref Bds
0.00781
Mt S Antonio Ccd Ds 01, 06 Ser C
0.00266
Mt San Antonio Ccd Ds 2001 S-A
0.00200
Mt San Antonio Ccd Ds 2004B
0.00503
Three Valley Municipal Water - 1112
0.00450
Pomona Unif Ds Ref 1997 Ser - A
0.04116
Pomona Usd Refdg Ds 2000 Ser - A
0.01450
Pomona Unif Sch Ds 1998 Ser D
0.00128
Pomona Usd Refdg Ds 2001 Ser A
0.01301
Pomona Unif Sch Ds 2002 Ser - A
0.00593
Pomona Unif Sch Ds 2002 Ser - B
0.00887
Pomona Unif Sch Ds 2002 Ser - C
0.00896
Pomona Unified Sch Ds 2002 Ser - D
0.00867
Pomona Unif Sch Ds 2002 Ser - E
0.00697
Pomona Unif Sch Ds 2007 Ref Bds
0.00444
Walnut Valley Unified Sch Dist 2000 Ser E
0.00033
Walnut Valley Unif Ds 2005 Ref Bonds
0.00778
Walnut Valley Unif Ds Ser 1997 A
0.05642
Walnut Valley Usd Ds 2000 Ser A
0.00281
Walnut Valley Usd Ds 2000 Ser B
0.00251
Walnut Valley Usd Ds 2000 Ser C
0.00691
Walnut Valley Usd Ds 2000 Ser D
0.00875
Walnut Valley Usd Ds 2000 Ser E
0.00035
Walnut Valley Unif Ds 2005 Ref Bds
0.00688
Total Voter Approved Rate
0.2213
Total Tax Rate 1.2213
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 scholl district the property is located in.
The City has elected to show only one year of data for this schedule.
Sources: Hdl Coren & Cone, LA County Property Tax Statement
-95-
City of Diamond Bar
Top 10 Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
Current Taxpayers
Behringer Harvard Western Portfolio
Hampton Apartments at Diamond Bar
Target Corporation
CRP -2 Holdings CC
DB Gateway Corporate, Inc.
Muller Rock 2 Gateway
Gateway Corporate Center
Hidden Manna Corporation
Ari Diamond Bar Limited Partnership
Millennium Diamond Road Partners, LLC
Taxpayers Ten Years Ago
Diamond Bar Business Associates
M & H Realty Partners II
Shea Homes Limited Partnership
Arden Realty Limited Partnership
Martin Brattrud Properties
Lakeview Village Corporation
HR Barros Family Limited Partnership
Diamond Bar Hotel Fund Limited
Mark R. Tounat Company Trust
Inter Community Health
2007-08 Percentage of Total
Assessed Valuation Net Assessed Valuation
$ 39,933,000
0.579%
35,496,990
0.515%
30,593,344
0.444%
28,682,236
0.416%
26,809,313
0.389%
24,022,387
0.348%
19,250,000
0.279%
19,020,602
0.276%
18,783,376
0.272%
17,998,919
0.261%
$ 260,590,167
3.780%
1998-99 Percentage of Total
Assessed Valuation Net Assessed Valuation
$ 24,195,400
20,666,119
11,384,853
10,790,000
10,688,485
9,433,099
8,525,458
8,219,594
8,183,000
7,390,000
$ 119,476,008
0.633%
0.541%
0.298%
0.282%
0.280%
0.247%
0.223%
0.215%
0.214%
0.193%
3.126%
Source: Hdl Coren & Cone, Los Angeles County Assessor 2007/08 combined tax rolls and the SBE Non Unitary Tax Roll
-96-
i
City of Diamond Bar
$3,500,000
Secured
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Fiscal Year
$3,000,000
Collected within the
Delinquent &
Ended
Total
Fiscal Year of Levy
Collections in
June 30
Current Levy
Amount
% to Levy
Subsequent Years
1999 $
1,810,266
$ 1,758,764
97.16%
$ 51,502
2000
1,904,915
1,813,904
95.22%
91,011
2001
1,954,530
1,847,817
94.54%
106,713
2002
2,129,310
2,017,399
94.74%
111,911
2003
2,301,716
2,211,793
96.09%
89,923
2004
2,504,974
2,390,554
95.43%
114,420
2005
2,698,515
2,568,064
95.17%
130,450
2006
2,921,267
2,615,545
89.53%
305,722
2007
3,204,812
2,948,678
92.01%
256,135
2008
3,446,453
3,128,201
90.77%
318,252
Source: Los Angeles County Auditor/Controller.
-97-
Total Secured Property Tax Collections
$3,500,000
$3,000,000
$2,500,000
N
c
W
$2,000,000
N
_
$1,500,000
$1,000,000
$500,000
$-
1999 2000 2001
2002
2003 2004
2005
2006 2007 2008
Fiscal Year
Source: Los Angeles County Auditor/Controller.
-97-
Fiscal Year
Lease
Ended
Revenue
June 30
Bonds (a)
1999
$
2000
Government
2001
Capita (b)
2002
13,755,00(
2003
13,755,00(
2004
13,755,00(
2005
13,655,00(
2006
13,520,00(
2007
13,280,00(
2008
13,025,00(
City of Diamond Bar
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Other Total
Total
% of
Debt
Bond and Governmental
Primary
Per Capita
Per
Loans Activities
Government
Income (b)
Capita (b)
- $ -
$ -
0.00%
$ -
- -
-
0.00%
-
- -
-
0.00%
-
- 13,755,000
13,755,000
0.80%
237
- 13,755,000
13,755,000
0.78%
233
- 13,755,000
13,755,000
0.77%
232
- 13,655,000
13,655,000
0.75%
229
- 13,520,000
13,520,000
0.72%
226
- 13,280,000
13,280,000
0.71%
222
- 13,025,000
13,025,000
0.69%
216
Notes:
(a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements.
(b) Details regarding the City's population and per capita income can be found in the Demographic and Economic
Statistics Table.
Source: City Finance Department
-98-
City of Diamond Bar
Direct and Overlapping Debt
June 30, 2008
(unaudited)
Direct Debt as of June 30, 2008:
Diamond Bar Lease Revenue Bond
Overlapping Debts as of June 30, 2008*:
Metropolitan Water District Three Valley Area 1112
Mt San Antonio Community College District 2001 Series A
Mt San Antonio Community College District 2004 Series B
Mt San Antonio Community College District DS 05 Ref Bd
Mt San Antonio Community College District DS 01, 06 Ser C
Pomona Unified School District Refund Series 1997A
Pomona Unified School District 2002 Series A
Pomona Unified School District 1998 Series D Debt Service
Pomona Unified SD Refunding 2001 Series A Debt Service
Pomona Unified School District 2002 Series A Debt Service
Pomona Unified School District 2002 Series B
Pomona Unified School District 2002 Series C
Pomona Unified School District 2002 Series D
Pomona Unified School District 2002 Series E
Walnut Valley Unified School District Refund Series 1997 A
Walnut Valley Unified School District 2000 Series A
Walnut Valley Unified School District 2000 Series B
Walnut Valley Unified School District 2000 Series C
Walnut Valley Unified School District 2000 Series D
Walnut Valley Unified School District 2000 Series E
Walnut Valley Unified School District 2005 Ref Bonds
Walnut Valley Unified School District 2007 Series A
Total Direct and Overlapping Bonded Debt
Gross Bonded
Debt Balance
$ 13,025,000
150,054,336
4,470,000
13,300,000
71,525,843
79,996,203
37,450,000
18,505,000
190,000
19,680,000
8,750,000
13,545,000
14,025,000
14,320,000
21,859,163
31,867,718
640,000
400,000
7,160,000
21,763,114
6,001,837
11,835,000
36,800,887
$ 597,164,101
% Applicable Net Bonded
To City Debt
100.000 $ 13,025,000
0.870
10.599
10.599
10.599
10.599
19.764
19.764
19.764
19.764
19.764
19.764
19.764
19.764
19.764
58.923
58.923
58.923
58.923
58.923
58.923
58.923
58.750
Debt to Assessed Valuation Ratios as of June 30, 2008: Ratio
2007/08 Net Assessed Valuation: $6,894,023,460
Debt to Assessed Valuation Ratios: Direct Debt 0.19%
Overlapping Debt 1.70%
Total Debt 1.89%
Report reflects general obligation debt which is being repaid through voter -approved indebtness.
It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded
capital lease obligations and certificates of participation.
* The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city.
Sources: Hdl Coren & Cone
City Finance Department
-99-
1,305,063
473,783
1,409,690
7,581,149
8,478,937
7,401,767
3,657,402
37,552
3,889,633
1,729,385
2,677,088
2,771,957
2,830,262
4,320,332
18,777,407
377,107
235,692
4,218,885
12,823,474
3,536,461
6,973,534
21,620,455
$ 130,152,015
Per Capita
$ 216
$ 1,940
$ 2,156
Net assessed value
Add back: Exemptions
Gross assessed value
Conversion percentage
Adjusted assessed
valuation
Debt limit percentage
Debt limit
City Debts:
Revenue bonds
Legal debt margin
Net assessed value
Add back: Exemptions
Gross assessed value
Conversion percentage
Adjusted assessed
valuation
Debt limit percentage
Debt limit
City Debts:
Revenue bonds
Legal debt margin
City of Diamond Bar
Computation of Legal Debt Margin
Last Ten Fiscal Years
(unaudited)
Fiscal Year Ended June 30,
loon )Ann Inni )nni
$ 3,767,314,142 $
3,900,751,190 $
4,125,665,929 $
4,357,791,664
$ 4,688,804,659
38,373,706
36,494,583
40,088,648
41,869,703
44,188,829
3,805,687,848
3,937,245,773
4,165,754,577
4,399,661,367
4,732,993,488
25%
25%
25%
25%
25%
951,421,962
984,311,443
1,041,438,644
1,099,915,342
1,183,248,372
15%
15%
15%
15%
15%
142,713,294
147,646,716
156,215,797
164,987,301
177,487,256
-
-
-
13,755,000
13,755,000
$ 142,713,294 $
147,646,716 $
156,215,797 $
151,232,301
$ 163,732,256
Fiscal Year Ended June 30,
')one Innc nnnr nnn7 Irma
$ 5,080,985,735 $
5,446,817,363
$ 5,874,950,276 $
6,421,927,342 $
6,894,023,460
47,621,182
39,831,091
51,408,286
28,682,577
39,859,238
5,128,606,917
5,486,648,454
5,926,358,562
6,450,609,919
6,933,882,698
25%
25%
25%
25%
25%
1,282,151,729
1,3 71,662,114
1,481,589,641
1,612,652,480
1,733,470,675
15%
15%
15%
15%
15%
192,322,759
205,749,317
222,238,446
241,897,872
260,020,601
13,755,000
13,755,000
13,520,000
13,280,000
13,025,000
$ 178,567,759 $
191,994,317
$ 208,718,446 $
228,617,872 $
246,995,601
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
-100-
City of Diamond Bar
Demographic and Economic Statistics
Last Ten Calendar Years
General Information
Date of Incorporation April 18, 1989
Form of Government Council -Manager
Area 14.76 Square Miles
Miles of Streets 137
Public Safety
Police Protection Los Angeles County Sheriff Department
Fire Protection Los Angeles County Fire Department
Water Services
Service Provider Walnut Valley Water District
Education
School District Pomona Unified School District
Schools 1 High School, 1 Middle School, & 4 Elementary Schools
School District Walnut Valley Unified School District
Schools 1 High School, 2 Middle Schools, & 4 Elementary Schools
Demographic and Statistical Information (Last Ten Calendar Years)
Calendar
Per Capita
Year
Population
1999
58,300
2000
56,287
2001
57,066
2002
58,115
2003
58,966
2004
59,399
2005
59,595
2006
59,722
2007
60,207
2008
60,360
Total
Per Capita
Personal
Personal
Total
Income
Income
Employment
1,485,017,600
$ 25,472
30,700
1,435,318,500
25,500
29,700
1,636,938,210
28,685
30,100
1,852,125,050
31,870
29,700
1,779,358,016
30,176
29,900
1,691,802,318
28,482
29,900
1;722,653,070
28,906
30,700
1,737,074,092
29,086
31,400
1,774,420,704
29,472
31,800
1,903,995,840
31,544
31,200
Sources: (1) State Department of Finance
(2) California LaborMarketInfo, Data Library
(3) Diamond Bar City, California - Fact Sheet - American FactFinder
(4) State of California - Labor Market Info (http://www.labormarketinfo.edd.ca.gov)
-101-
Unemployment
Rate
4.00%
3.70%
3.80%
4.90%
5.10%
4.70%
3.60%
3.20%
3.40%
5.30%
City of Diamond Bar
Principal Employers
(unaudited)
Current Fiscal Year and Nine Fiscal Years Ago
2008 1999
"Total Employment" as used above represents the total employment of all employers located within City limits.
Source: InfoUSA - Government Division
-102-
Number of
% of Total
Number of
% of Total
Employer
Employees
Employment
Employees
Employment
South Coast Air Quality Management
786
2.52%
710
2.31%
St Paul Travelers
401
1.29%
Target Store - Diamond Bar
220
0.71%
AAA Auto Club of California
200
0.64%
Diamond Bar High School
200
0.64%
160
0.52%
Lab Support Inc
200
0.64%
First Team Real Estate
150
0.48%
J.F. Shea Co. Inc
135
0.43%
Baybrook Services
120
0.38%
Goodrich Hoist & Winch
120
0.38%
Southwest Patrol
120
0.38%
Starside Security & Investigation
120
0.38%
Century 21 Diamond Realty
120
0.38%
Administaff Inc
100
0.32%
Biosense Webstar Inc
100
0.32%
First Mortgage Corp
100
0.32%
75
0.24%
Kelley -Clarke Inc
400
1.30%
ADP
300
0.98%
K Mart
130
0.42%
California Compensation Inc
110
0.36%
Dail Egg Ranchers Inc
100
0.33%
Lucky Food Center
80
0.26%
Chaparral Middle School
80
0.26%
Diamond Bar Honda
80
0.26%
Diamond Bar Country Club
70
0.23%
Total Employment
31,200
30,700
"Total Employment" as used above represents the total employment of all employers located within City limits.
Source: InfoUSA - Government Division
-102-
City of Diamond Bar
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
Function
l General government
( Community development
Community services
Public works
Total
Function
General government
Community development
Community services
Public works
Total
Fiscal Year Ended June 30,
1999
2000
2001
2002
2003
22
21
24
24
24
5
6
4
4
4
12
41
38
37
38
4
4
4
4
5
43
72
70
69
71
Fiscal Year Ended June 30,
2004
2005
2006
2007
2008
25
25
22
21
24
5
7
8
8
6
45
74
77
74
69
6
7
7
8
10
81
113
114
111
109
Note:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
Source: City Finance Department
-103-
City of Diamond Bar
Operating Indicators by Function
Last Ten Fiscal Years
Function
.Police: (in calendar year) (1)
Arrests
Street Sweeping Parking Citation
Fire: (in calendar year) (2)
Number of emergency calls
Inspections
Public works: (in fiscal year) (3)
Street resurfacing (miles)
Parks and recreation: (in fiscal year) (4)
Number of recreation classes
Number of facility rentals
Fiscal Year Ended June 30,
2004 2005 2006 2007 2008
481
520
Fiscal Year Ended June 30,
582
Function
1999
2000
2001
2002
2003
Police: (in calendar year) (1)
2,615
2,592
2,612
2,595
1,206
Arrests
723
817
764
571
552
Street Sweeping Parking Citation
(a)
(a)
2,996
7,995
6,662
Fire: (in calendar year) (2)
1,569
1,736
4,123
4,305
4,555
Number of emergency calls
(a)
(a)
2,647
2,666
2,741
Inspections
(a)
(a)
(a)
(a)
(a)
Public works: (in fiscal year) (3)
Street resurfacing (miles)
20.6
23.0
24.6
19.7
18.5
Parks and recreation: (in fiscal year) (4)
Number of recreation classes
740
1,084
1,062
947
915
Number of facility rentals
785
785
785
785
1,021
Function
.Police: (in calendar year) (1)
Arrests
Street Sweeping Parking Citation
Fire: (in calendar year) (2)
Number of emergency calls
Inspections
Public works: (in fiscal year) (3)
Street resurfacing (miles)
Parks and recreation: (in fiscal year) (4)
Number of recreation classes
Number of facility rentals
Fiscal Year Ended June 30,
2004 2005 2006 2007 2008
481
520
558
582
543
6,710
6,250
5,790
5,684
5,200
2,755
2,615
2,592
2,612
2,595
1,206
1,159
837
1,114
1,085
5.0
18.6
16.8
19.6
18.5
1,022
1,102
1,376
1,558
1,569
1,736
4,123
4,305
4,555
4,103
(a) Unavailable
Note: Indicators are not available for the general government function.
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dept East Regional Operation Bureau
(3) City Public Works Department
(4) City Community Services Department
-104-
City of Diamond Bar
Capital Asset Statistics by Function
Last Five Fiscal Years
(a) Unavailable
Notes:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
No capital asset indicators are available for the general government function.
L
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dept East Regional Operation Bureau
(3) City Public Works Department
'. (4) City Community Services Department
-105-
Fiscal Year Ended June 30,
Function
2004
2005
2006
2007
2008
Public safety:
Police (1):,
Station
1
1
1
1
1
Patrol units (all shifts combined)
20
20
19
19
18
Fire (2):
Stations
3
3
3
3
3
Public works:
Highways and streets (3):
Streets (miles)
137
137
137
137
137
Streetlights
(a)
(a)
(a)
233
233
Traffic signals
(a)
(a)
(a)
75
76
Parks and recreation:
Culture and recreation (4):
Parks acreage (developed)
62.7
62.7
62.7
62.7
62.7
Parks acreage (undeveloped)
439
439
439
439
439
Parte
11
11
11
11
11
Public tennis courts
8
8
8
8
8
Community centers
3
3
3
3
3
Sewer (3):
Sanitary sewers (miles)
(a)
(a)
(a)
157
157
(a) Unavailable
Notes:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
No capital asset indicators are available for the general government function.
L
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dept East Regional Operation Bureau
(3) City Public Works Department
'. (4) City Community Services Department
-105-