HomeMy WebLinkAboutCAFR - FY 2008-09CITY OF DIAMOND BAR, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2009
Prepared by:
FINANCE DEPARTMENT
Linda G Magnuson
Director of Finance
CITY OF DIAMOND BAR
TABLE OF CONTENTS
June 30, 2009
INTRODUCTORY SECTION:
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting
Organization Chart
List of Elected and Administrative 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
1-2
3-12
13
14
15
16-17
19
20-21
22
23
24
25
27-50
TABLE OF CONTENTS
(CONTINUED)
June 30, 2009
Page
Number
FINANCIAL SECTION (CONTINUED):
Required Supplementary Information:
Schedule of Funding Progress: 51
Postemployment Benefits Other Than Pensions 52
Budgetary Comparison Schedules: 53
General Fund 54
Proposition 1B Bond Special Revenue Fund 55
Note to Required Supplementary Information 56
Supplementary Information:
Other Governmental Funds:
Combining Balance Sheet 57
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 59
Other Special Revenue Funds:
60-61
Combining Balance Sheet
62-65
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
66-69
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
State Gas Tax Fund
70
Proposition C Transit Fund
71
Intermodal Surface Transportation Enhancement
Act (ISTEA) Special Revenue Fund
72
Integrated Waste Management Fund
--c
73
Train' Improvement Fund
74
Traffic Congestion Relief Fund
75
Air Quality Improvement Fund
76
Trails & Bikeways Fund
77
California Law Enforcement Equipment Program (CLEEP) Fund
78
Proposition A Transit Fund
79
Community Development Block Grant (CDBG) Fund
80
Citizens Option for Public Safety (COPS) Fund
81
Asset Seizure Fund
82
Landscape Maintenance District Fund
83
Park and Facility Development Special Revenue Fund
84
Major Capital Projects Fund: 85
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Capital Improvement Fund - Major Fund 86
CITY OF DIAMOND BAR
TABLE OF CONTENTS
(CONTINUED)
June 30, 2009
FINANCIAL SECTION (CONTINUED):
Supplementary Information (Continued):
Page
Number
Internal Service Funds: 87
Combining Statement of Net Assets 88
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets 89
Combining Statement of Cash Flows 90
STATISTICAL SECTION:
Description of Statistical Section Contents 91
Financial Trends:
Net Assets by Component - Last Seven Fiscal Years 92-93
Changes in Net Assets - Last Seven Fiscal Years 94-95
Fund Balances of Governmental Funds - Last Seven Fiscal Years 96-97
Changes in Fund Balances of Governmental Funds - Last Seven Fiscal Years 98-99
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 101
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 102-103
Top 10 Property Taxpayers - Current Fiscal Year and Nine Fiscal Years Ago 104
Secured Property Tax Levies and Collections - Last Ten Fiscal Years 105
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 106
Direct and Overlapping Debt 107
Computation of Legal Debt Margin - Last Ten Fiscal Years 108
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years 109
Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago 110
Operating Information:
Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years ill
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Operating Indicators by Function - Last Ten Fiscal Years 112
Capital Asset Statistics by Function - Last Seven Fiscal Years 113
Carol Herrera
Mayor
Steve Tye
Mayor Pro Tem
Ling -Ling Chang
Council Member
Ron Everett
Council Member
Jack Tanaka
Council Member
Recycled paper
December 18, 2009
21825 Copley Drive • Diamond Bar, CA 91765-4178
(909) 839-7000 • Fax (909) 861-3117
www.CityofDiamondBar.com
Honorable Mayor and Members of the City Council
City of Diamond Bar
Diamond Bar, California
It is a pleasure to submit the Comprehensive Annual Financial Report of the City of
Diamond Bar for the fiscal year ended June 30, 2009. 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, 2009, 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, 2009, were fairly presented
inconformity 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.
ECONOMIC CONDITION .AND OUTLOOK
. During the last few years, the City of Diamond Bar's economy had seen a slight improvement. At the
end of fiscal year 07-08 the nation and City's economy started a downward spiral. During fiscal
year 08-09 this downward trend continued. Retail sales were down and unemployment numbers
reached new heights. This along with the major budget shortfalls experienced by the State, are of a
major concern to the City of Diamond Bar.
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. This is evidenced by the State's planned borrowing of 8%
the City's property tax allocations in fiscal year 09-10. The City's fiscal year 2009-2010 budget has
been prepared to weather the economic downturn in an effort to leave reserves intact for capital outlay
and future plans.
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. During the year, the City, continued to
work on the annexation of the Crestline area. This annexation area contains a major sales tax producer
which will benefit the City of Diamond Bar.
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.
The City will be seriously impacted by increased 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. On
April 7, 2009 the City approved a settlement agreement with the City of Industry addressing
environmental and operational concerns. This agreement provides much needed funding for traffic
improvements, noise mitigation, and future funding for City facilities.
In an ongoing effort to find opportunities to fund City operations, the City spent most of fiscal
year 08-09 negotiating new waste hauler contracts. In the past the City's contracts did not include a
franchise fee unlike most municipalities in the area. The contract negotiations were completed and
contract was approved in the early part of fiscal year 09-10.
In fiscal year 09-10, the City will continue to explore opportunities to expand its sales tax and property
tax base with new development opportunities in its commercial areas. Development opportunities in
the City's commercial areas include the Walnut Valley Trailer Park site; site "D"; the former Honda
dealership site; 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.
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, 2008. The Certificate of
Achievement is a prestigious national award recognizing conformance with the highest standards for S
preparation of state and local financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report, with contents that conform
to program standards. The CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has (
received the Certificate of Achievement for the last fourteen consecutive years (fiscal years ended 1
1995 through 2008). 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. 1
REPORTING ENTITY AND ITS SERVICES
This Comprehensive Annual Financial Report includes all funds of the City. The City directly
provides a limited range of services and contracts for several other services. The City's significant
reliance on contracted services has the benefit of reducing expenses to the citizens of the City of
Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding
to changing economic conditions. Contracted services include police protection, building and safety,
street maintenance, park maintenance, capital improvement projects, animal control, attorney services
and engineering. Staff provided services include: community development (which includes planning,
economic development, building and safety management, and neighborhood improvement), public
works (which includes engineering, capital projects administration, street maintenance contract
management, traffic and transportation matters, engineering contract management, and solid waste
contract management), community services (which includes senior services, park maintenance,
recreation services, community center operation, and landscape maintenance), community relations,
subsidized transit ticket sales, grant administration, financial management, and administrative
management. All of these activities are included in this report.
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 fiscal year 08-09, most of the City funds were
invested in the Local Agency Investment Fund (LAIF), which is administered by the State Treasurer's
Office. In addition to LAIF, the City diversified its investment portfolio by also investing in U.S.
Government Sponsored Enterprise Securities and Money Market Mutual Fund accounts that are in
accordance with the City's investment policy. The City manages all of its cash and investments on a
pooled basis. Interest earnings are allocated to the various funds based on their share of cash and
investment balances.
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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.
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 Authority by 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, 2009 was $1,093,966.
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, 2007, 2008, and 2009 the employer contribution to
PERS was 11.0518%, 10.91% 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 $648,666 for
fiscal year 2008-2009.
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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 the preparation of the City's Comprehensive Annual Financial Report.
In closing, without the leadership and support of the City Council of the City of Diamond Bar, the
preparation of this Report would not have been possible.
Sincerely,
James DeStefano
City Manager
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Certificate of
Achievement
for Excellence
In Financial
Reporting-
-Presented
to
City of Diamond Bar
California
For its Comprehensive Annual
Financial Report .
for the Fiscal Year Ended
June 30, 2008
?, 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 DIAMOND BAR
ELECTED AND ADMINISTRATIVE OFFICIALS
FISCAL YEAR 08-09
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
City Manager
Assistant City Manager
City Clerk
Director of.
Community Services
Community Development
Finance
Information Systems
Public Works
Ron Everett
Carol Herrera
Wen Chang
Jack Tanaka
Steve Tye
James DeStefano
David Doyle
Tommye Cribbins
Bob Rose
Greg Gubman
Linda Magnuson
Ken Desforges
David Liu
MME
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606-5165
(949) 399-0600 • FAX (949) 399-0610
www.diehlevans.com
December 18, 2009
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and City
Council of the City of Diamond Bar
Diamond Bar, California
MICHAEL R. LUDIN, CPA
CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT J. CALLANAN. CPA
'PHILIP H. HOLTKAMP. CPA
'THOMAS M. PERLOWSHI, CPA
'HARVEY J.SCHROEDER.CPA
KENNETH R. AMES, CPA
-WILLIAM C. PENTZ, CPA
'A PROFESSIONAL CORPORATION
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, 2009, which collectively comprise the City's basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the City of Diamond
Bar's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Diamond Bar, California, as of June 30, 2009, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then
j ended in conformity with accounting principles generally accepted in the United States of America.
i
As described in Note 9 to the basic financial statements, the City adopted the provisions of
Governmental Accounting Standards Board Statement No. 45, "Accounting and Financial Reporting
by Employers for Postemployment Benefits Other than Pensions", for the year ended June 30, 2009.
-1-
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 18, 2009 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 1
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, and the schedule of funding progress, 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 or the schedule of
funding progress and express no opinion on them. 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,
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
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 . M
MOM!
Jill
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MANAGEMENT'S DISCUSSION AND ANALYSIS
THIS PAGE LEFT BLANK INTENTIONALLY
CITY OF DIAMOND DAR
Management's Discussion and Analysis
June 30, 2009
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, 2009. 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
$407,026,659 (net assets). Of this amount, $34,554,084 (unrestricted net assets) may be used to meet
the City's ongoing obligations to citizens and creditors.
• The total governmental funds revenues from all sources equaled $27,216,357.
• The total cost of all City governmental funds programs equaled $27,666,818.
• As of the close of the current fiscal year, the City of Diamond Bar's governmental funds reported
combined ending fund balances of $37,130,401, a decrease of $861,061 in comparison with the prior
year. Approximately $30 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 $30,041,357, or
almost one and two thirds the amount of general fund expenditures.
• In April 2009, the City reached a settlement with the City of Industry over issues related to the proposed
construction of a new NFL football stadium. This agreement has the potential to provide millions of
dollars for traffic and noise mitigation and future community facilities to the City of Diamond Bar.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Diamond Bar's basic financial
statements. The City of Diamond Bar's basic financial statements comprise three components:
1) government -wide financial statements, 2) fund financial statements, and 3) notes to the basic financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -wide financial statements — The government —wide financial statements are designed to provide
readers with a broad overview of the City of Diamond Bar's finances, in a manner similar to a private -sector
business.
The statement of net assets presents information on all of the City of Diamond Bar's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in new assets may serve
as a useful indicator of whether the financial position of the City of Diamond Bar is improving or deteriorating.
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, 2009
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 functions
that are intended to recover all or a significant portion of their costs through user fees and charges (business -type
activities). The governmental activities of the City of Diamond Bar include general government, public safety,
highways and streets, community development, and parks and recreation. The City of Diamond Bar currently
has no business -type activities 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
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
used to allocate costs internally among the various functions of the City. The City of Diamond Bar uses these
funds to account for its liability insurance costs and vehicle and computer replacement costs. Because these
services predominantly benefit governmental rather than business -type functions, they have been included
within governmental activities within the government -wide financial statements.
Notes to the Basic Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other Information — In addition to the basic financial statements and accompanying
notes this report also
presents certain required supplementary information concerning the City's budgetary control and accounting and
expenditures in excess of appropriations.
See independent auditors' report.
-4-
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2009
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 $407,026,659 at the close of 2009. (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
Current and other assets
Capital assets
Total Assets
Long-term debt outstanding
Other Liabilities
Total Liabilities
Net assets:
Invested in capital assets, net of debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
2009 2008
$44,603,746
$46,289,772
380,179,867
383,9741296
424,783,613
430,264,068
12, 542, 475
12, 806, 584
5,214,479
6,160,699
17, 756, 954
18, 967, 283
367,529,907
370,949,296
4,942,668
4,110,985
34,554,084
36,236,504
$407,026,659
$411,296,785
The City's Net Assets decreased by $4,270,126. Most of this decrease is due to the decrease in the total value of
capital assets due to the aging and resulting depreciation of the City's capital assets.
At the end of fiscal year 2009 the City reports a 4.6 percent or $1,682,420 decrease in unrestricted net assets
from the prior fiscal year. The City has continually expended its resources conservatively in anticipation of
economic downturns which has resulted in being able to end the year with $34,554,084 in Unrestricted Net
Assets. This year by using some of its resources the City was able to preserve service levels and continue to
maintain its assets at the level the citizens of Diamond Bar have enjoyed since incorporation 20 years ago.
See independent auditors' report.
-5-
CITY OF DIAMOND BAR
Management's Discussion and .Analysis
(Continued)
June 30, 2009
Government -wide Financial Analysis (Continued)
Revenues
The City's total revenues were $27.3 million, while the total cost of all programs and services was
$31.6 million. Revenues this fiscal year were 3% higher than those of the prior year. There were increases and
decreases across the revenue categories which resulted in the overall increase in revenue.
Table 2
City of Diamond Bar
Statement of Activities
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues
Property taxes
Transient occupancy taxes
Sales Taxes
Property Taxes in Lieu of Sales Taxes
Franchise Taxes
Property transfer tax
Other taxes
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
Increase(Decrease) in net assets
Net assets - 0701/07
Net assets:- 06/30/08
See independent auditors' report.
'S.'m
2009 2008
$4,605,467 $5,858,619
5,588,818 4,307,074
2,272,580 219,193
8,460,356 8,194,270
633,075
800,390
2,166,782
3,114,562
918,441
987,615
1,093,039
1,024,710
199,365
283,433
33,888
33,865
194,547
262,064
833,270
1,420,989
304,463
4,388
27,304,091
26,511,172
5,159,300
4,473,666
5,396,083
4,944,729
13,931,211
12,034,669
1,959,303
2,251,196
4,950,687
5,188,977
177,633
392,548
31,574,217 29,285,785
(4,270,126) (2,774,613)
411,296,785 414,071,398
$407,026,659 $411,296,785
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2009
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 developer fees related
to the construction of the Brookfield homes project. In addition normal development related fees
dropped due to the poor economy.
• The dramatic increase of over $1.2 million in operating grants and contributions is due to several
different factors. The City received grants and allocations from various entities for specific
purposes including traffic improvements, road maintenance and park improvements. Additionally
the City increased solid waste fees which resulted in an additional $250 thousand.
• The increase in the Capital Grants & Contributions is due to this year's receipt of Federal & State
funds. The City received Federal Funds equaling $1,271,633 for improvements made to Grand
Ave. In addition Prop 1B Bond funds were received from the State for street improvement
purposes.
• Property Tax revenues continued to increase slightly in fiscal year 08-09 even though the housing
prices dropped considerably. It is anticipated this drop in prices will be reflected in fiscal
year 09-10 property tax receipts.
• eu of Sales were dramatically lower this fiscal year primarily due
Sales Tax and Property Tax m Li
to the drop in gasoline prices. Prices had reached an all time high of nearly $5/gallon then dropped
to less than $3/gallon. The City is located at the intersection of several freeways and as a result
some of its highest sales tax producers are service stations. The City also lost its only auto
dealership in 2007causing further reduction. In addition the economy caused a drop in retail sales
throughout the City.
• Property Transfer tax was lower this year due to a slump real estate sales resulting from falling real
estate prices and tighter lending practices by the mortgage industry.
• Investment Income has decreased tremendously due to the extreme drop in investment yields.
Interest rates started falling during fiscal year 07-08 and have continued to drop. At the beginning
of fiscal year 07-08 the City was earning 5.255% average yield on a majority of its investments. By
the end of fiscal year 08-09, the average yield on the same investments had dropped to 1.377%.
Expenses
This year expenses for the City totaled $31.6 million which is nearly $2.3 million or 7.8% more 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 higher this year for several different reasons. Some of which included: legal
expenses related to the NFL Stadium settlement agreement; reassignment of Management Analyst
positions to the City Manager's office, and acquisition of land.
• There was an increase in Public Safety expenditures of approximately 9% this year. Contract rates with
the L.A. County Sheriff's Department rose approximately 4.8% in fiscal year 08-09. This increase as
well as the filling of vacancies in the contracted law enforcement positions contributed to this increased
cost.
• Highways and Streets category was higher this year by a little over $1.9 million. During fiscal
year 2007-08 the City completed additional rehabilitation of Grand Avenue. This in addition to two
large slurry seal projects and work continuing on the City's new traffic management system caused the
increase in this category.
See independent auditors' report.
-7-
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2009
Government -wide Financial Analysis (Continued) - -- -- -
Expenses (Continued)
The economic downturn caused a decrease in Community Development expenditures this year. Many
development projects were put on hold and vacancies in the Planning Department were covered with
contracted services.
Interest rates on the outstanding variable rate lease revenue bonds were lower this year. During the year
the City analyzed bond remarketing firms and found that another firm who has been able to obtain better
rates for the City's bond issue. This in addition to lower interest rates overall and lower outstanding
principal amount provided savings to the City.
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 $37,130,401, a decrease of $861,061 in comparison with the prior year. Of this amount,
there is $2,728,176 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 $30,041,357, while the total fund balance was $31,653,538.
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 165.3% of total general fund
expenditures, while total fund balance represents 174.2% of the same amount.
Since the City's incorporation in 1989, the City has been fiscally conservative contributing to healthy fund
balance reserves. Several years ago the City chose to fund major maintenance projects from General Fund
reserves when other funds were not available for this purpose. Fiscal year 2008-09 was the first year in which it
was necessary to do so resulting in a decrease in General Fund fund balance reserves of $1,275,976.
See independent auditors' report.
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2009
Financial Analysis of the City's Funds (Continued)
Governmental funds (Continued)
Factors contributing to the change in General Fund balance reserves are as follows:
• General Fund revenues were down nearly 12% or $2.2 million from fiscal year 07-08. Nearly half of
that amount was due to the previously discussed drop in sales tax revenues. This in addition to the fact
that last fiscal year the City received one time developer fees equaling $960 thousand made up for most
of the reduction in General Fund revenues.
• The City used General Fund reserves to purchase land for the purpose of building a park.
• General Fund reserves were used to assist in the funding of two slurry seal projects, the Grand Avenue
rehabilitation project and two traffic improvement projects.
• Diamond Bar Center received a new emergency generator this year with the assistance of the General
Fund.
• Conservative expenditure budgets over the years have contributed to the City's general fund healthy
fund balance reserve. This includes a contract city business model which aides the City in containing
costs.
Recently the State issued voter approved transportation bonds (Prop 1B). As soon as the funds became available
the City submitted a claim for the City's share. As a result the City received the money in anticipation of
completing the budgeted projects. This provided the City an opportunity to earn interest on the money while the
projects were being awarded. This resulted in the City being able to earn interest on the unused funds. The
ending fund balance of $32,012 was derived from the interest revenue. During the fiscal year the City used
$978,356 in Prop 1B money on three slurry seal projects, and two traffic control projects.
The Capital Improvement Capital Projects Fund ended the year with a negative fund balance of $425,089 as
opposed to a negative of $361,238 in the previous year. Ideally this fund should carry a zero fund balance.
Capital project expenditures are accounted for in this fund along with their offsetting revenues and transfers.
Due to revenue and expenditure accruals, it is not unusual for the fund to carry a negative balance since many of
the capital improvement projects are funded with reimbursable grants.
See independent auditors' report.
-9-
Management's Discussion and Analysis
(Continued)
June 30, 2009
General Fund Budgetary Highlights
Original revenue budget projections were decreased during the year by 5.55% to reflect more conservative
revenue projections. The actual revenue came in slightly 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.
Unfortunately these revenues fell short of the revenue estimate by $222,625. The variance between the amount
budgeted and the amount received is primarily due to the over estimation of anticipated sales tax revenue.
The City anticipated receiving FEMA reimbursement which is still in contention. This caused the budgeted
revenue in the Intergovernmental category to exceed actual revenue received.
Although the revenue anticipated for Licenses, Permits and Fees was reduced during the year, actual receipts
still came in $113,916 less than anticipated.
On the other hand Rents and Concessions continued to grow with the popularity of the Diamond Bar Center and
other park venues resulting in revenues coming in higher than expected.
Although there was an increase in General Fund appropriations for the year of 6.07% from the original budget to
the amended budget, the final expenditures actually came in less than the original budget or $1,782,281 less than
budgeted. At the end of the year, there were General Fund open encumbrances equaling $416,339 which was
carried over into fiscal year 09-10. Reasons for the difference between budget and actual expenditures include
salary savings from staff vacancies, savings from low interest rates on the City's variable rate debt, various
studies and projects which were either postponed or cancelled and overall cost cutting measures implemented by
all departments.
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, 2009 amounts to $380,179,867 (net of accumulated depreciation). This investment in capital assets
includes land, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and
construction in progress. The total decrease in the City's investment in capital assets was approximate 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 & Equipment
Infrastructure
Construction in Progress
See independent auditors' report.
2009
2008
$6,587,349
$6,206,190
256,536,095
256,536,095
14, 564, 532
15,195,460
17,260
7,692
515,494
653,078
100,633,516
103,882,787
1,325,621
1,492,994
$380,179,867
$383,974,296
-10-
CITY OF DIAMOND BAR
Management's Discussion and Analysis
(Continued)
June 30, 2009
Capital Asset and Debt Administration (Continued)
Capital assets (Continued)
The City's capital assets decreased in value $3,794,429 during fiscal year 08-09. The total value of capital
assets decreased due to the aging and resulting depreciation of the City's capital assets.
One of the City Council's fiscal year 08-09 goals was to establish a neighborhood park in the Washington Street
area. In October 2008, the City purchased a piece of property for this purpose resulting in an increase in City
owned land. The design of this new park will be completed in fiscal year 09-10. Park construction will follow
soon thereafter.
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:
• The Diamond Bar Center received new ADA compliant restroom doors and a new emergency generator
during the year.
• Improvements were made to Paul Grow Park including new sidewalks, picnic table areas, and ADA
upgrades to the park restroom building.
• The new trail and access point at Clear Creek Canyon/Steep Canyon for the Sycamore Canyon trail
were completed and opened for use during the year.
• Traffic signal improvements include a new signal at Golden Springs and Racquet Club, modifications
and improvements to seven intersections including:
Intersection of Diamond Bar Blvd and Shadow Canyon
Intersection of Golden Springs and Prospectors
Intersection of Brea Canyon Road and Golden Springs
Intersection of Diamond Bar Blvd and Golden Springs
Intersection of Brea Canyon Road and Pathfinder
Intersection of Brea Canyon Road and Diamond Bar Blvd
Intersection of Golden Springs and Lemon
• Sidewalk additions include new ADA curb ramps for areas near several schools within the City.
Construction in progress at the end of the year included eight projects in various stages of construction. There
were four park improvement projects in progress totaling $234,035. There was a city hall computer room
sprinkler improvement project and a median progress in progress at the end of the year as well. The other two
projects equaling $1,064,650 are the traffic management system and an interconnect links project.
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
$13,172,475. This is the first year that the City was required to report its OPEB obligation. At this time the
City is using a pay as you go methodology for funding its OPEB. The City's long-term debt includes the net
OPEB obligation which is the difference between the amounts paid on the pay as you go basis versus the
actuarially computed Annual Required Contribution. As a result the following table shows the breakdown of
the long-term debt outstanding.
See independent auditors' report.
-11-
Management's Discussion and Analysis
(Continued)
June 30, 2009
Capital Asset and Debt Administration (Continued)
Long-term debt (Continued)
City of Diamond Bar
Outstanding Long Term Debt at Year-end
Variable Rate Lease Revenue Bonds
(backed by the Public Financing
Authority) $12,760,000
Unamoritzed Bond Discount (110,040)
Compensated Absences (backed by
the City) 457,728
Net OPEB Obligation 64,787
$13,172,475
Additional information on the City's long-term debt can be found in note 5.
Economic Factors and Next Year's Budgets and hates
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 2009-2010 budget is a fiscally conservative budget. The poor economy and worsening condition of
the State's budget continue to be a major concern. As a result anticipated revenues in the General Fund have
been reduced. At the same time, the expenditure budget is slightly more than the prior year's appropriations.
This budget presents an operating plan that permits the City to live within a reasonable estimate of revenues
while continuing to provide community programs and services to the residents of the City of Diamond Bar.
To combat some of the economic uncertainties the City has recently completed a fee study. This study evaluated
the City's current fee structure to verify that costs associated with fees are recovered. It is anticipated that there
may be a slight increase in fees to offset the cost of providing service in the near future.
When the City's waste hauler contracts were set to expire, the City looked at other jurisdictions in the area and
found that it was not unreasonable to negotiate a franchise fee into the new contracts. These fees effective in
August, 2010 will provide the City with an addition revenue stream in which to fund operations.
The City has made a conscientious decision to use some general fund balance reserves for economic
development purposes. As a result, the fiscal year 2010 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 Ciiy'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
THIS PAGE LEFT BLANK INTENTIONALLY
i
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
June 30, 2009
See independent auditors' report and notes to basic financial statements.
-13-
Governmental
Activities
ASSETS:
$ 40,354,654
Cash and investments (Note 2)
328,266
Accounts receivable
137,010
Interest receivable
2,701,450
Due from other governments
7,838
Due from employees
2433,,057057
Notes receivable
505,400
Deferred charges
Restricted assets:
326,071
Cash and investments with fiscal agents (Note 2)
Capital assets, not depreciated (Note 4)
264,449,065
Capital assets, depreciated, net (Note 4)
115,730,802
424,783,613
TOTAL ASSETS
LIABILITIES:
1,641,765
Accounts payable
150,449
Accrued payroll
5,156
Interest payable
1,032,686
Deposits payable
96
196,538
1
Retentions payable
1,014,606
Uneamed revenue
311,790
Due to other governments
231,489
Advance from other governments
Noncurrent liabilities:
630,000
Due within one year (Note 5)
12,542,475
Due in more than one year (Note S)
17,756,954
TOTAL LIABILITIES
NET ASSETS:
367,529,907
Invested in capital assets, net of related debt
Restricted for:
305,915
Debt service
3,526,991
Capital projects
541,482
Public safety
568,280
Community development
34,554,084
Unrestricted
$ 407,026,659
TOTAL NET ASSETS
See independent auditors' report and notes to basic financial statements.
-13-
CITY OF DIAMOND BAR
STATEMENT OF ACTIVITIES
For the year ended June 30, 2009
General revenues:
Taxes:
Property taxes
Net (Expense)
Transient occupancy taxes
633,075
Sales taxes
2,166,782
Property taxes in lieu of sales taxes
Revenue and
Franchise taxes
1,093,039
Property transfer tax
199,365
Other taxes
Changes in
Unrestricted motor vehicle in lieu
194,547
Investment income
Program Revenues
Other revenues
Net Assets
Total general revenues
14,837,226
Charges
Operating
Capital
411,296,785
NET ASSETS - END OF YEAR
$ 407,026,659
for
Grants and
Grants and
Governmental
Functions/programs
Expenses
Services
Contributions
Contributions
Activities
Governmental activities:
General government
$ 5,159,300
$ 132,262
$ 140,473
$ -
$ (4,886,565)
Public safety
5,396,083
1,017,336
101,426
-
(4,277,321)
Highways and streets
13,931,211
1,732,985
4,042,954
2,272,580
(5,882,692)
Community development
1,959,303
17,602
1,108,781
-
(832,920)
Parks, recreation
and culture
4,950,687
1,705,282
195,184
-
(3,050,221)
Interest on long-term debt
177,633
-
-
-
(177,633)
Total governmental
activities
$ 31,574,217
$ 4,605,467
$ 5,588,818
$ 2,272,580
(19,107,352)
General revenues:
Taxes:
Property taxes
8,460,356
Transient occupancy taxes
633,075
Sales taxes
2,166,782
Property taxes in lieu of sales taxes
918,441
Franchise taxes
1,093,039
Property transfer tax
199,365
Other taxes
33,888
Unrestricted motor vehicle in lieu
194,547
Investment income
833,270
Other revenues
304,463
Total general revenues
14,837,226
Change in net assets
(4,270,126)
NET ASSETS - BEGINNING OF YEAR
411,296,785
NET ASSETS - END OF YEAR
$ 407,026,659
See independent auditors' report and notes to basic financial statements.
-14-
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 fund.
SPECIAL REVENUE FUND
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:
Proposition IB Bond Fund - This fund is used to account for the receipt and expenditures of
Proposition 1B Bond funds from the State of California.
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 llnprovement 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.
-15-
CITY OF DIAMOND BAR
BALANCESHEET
GOVERNMENTALFUNDS
June 30, 2009
Special
Revenue Fund
Propostion
General 1B Bond
ASSETS
ASSETS:
Cash and investments $ 32,162,647 $ 879,731
Cash and investments with fiscal agents 15,000 -
Accounts receivable 239,658
Interest receivable 137,010 -
Due from other funds (Note 3) 555,737 -
Due from employees 7,838 -
Due from other governments 1,275,498 -
Notes receivable - -
TOTAL ASSETS $ 34,393,388 $ 879,731
LIABILITIES AND FUND BALANCES
Accounts payable
$ 1,064,877 $
-
Accrued payroll
143,587
-
Deposits payable
1,032,686
-
Due to other funds (Note 3)
-
-
Deferred revenue
497,843
847,719
Retentions payable
857
-
Advances from other governments
-
-
TOTAL LIABILITIES
2,739,850
847,719
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
416,339
-
Bond retirement
1,195,842
-
Debt service
-
-
Unreserved, Reported in:
General Fund
30,041,357
-
Special Revenue Funds
-
32,012
Capital Projects Funds
-
-
TOTAL FUND BALANCES (DEFICIT)
31,653,538
32,012
TOTAL LIABILITIES AND FUND BALANCES
$ 34,393,388 $
879,731
See independent auditors' report and notes to basic financial statements.
-16-
Capital
Projects Fund
Capital Other Total
Improvement Governmental Governmental
$ - $ 5,201,695 $ 38,244,073
- 311,071 326,071
88,608 328,266
137,010
555,737
- 7,838
310,120 1,115,832 2,701,450
243,057 -243,057
$ 310,120 $ 6,960,263 $ 42,543,502
$ 240,572
$ 336,316
$ 1,641,765
-
6,862
150,449
-
-
1,032,686
119,308
436,429
555,737
179,648
79,227
1,604,437
195,681
-
196,538
-
231,489
231,489
735,209
1,090,323
5,413,101
2,252,141 59,696 2,728,176
- 1,195,842
- 311,071 311,071
- 30,041,357
- 5,499,173 5,531,185
(2,677,230) - (2,677,230)
(425,089) 5,869,940 .37,130,401
$ 310,120 $ 6,960,263 $ 42,543,502
-17-
9".
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO TBE STATEMENT OF NET ASSETS
June 30, 2009
Fund balances for governmental funds $ 37,130,401
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.
380,138,731
Long -tern 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, 2009 are:
Bonds payable
B
$(12,760,000)
Deferred charges for issuance costs
505,400
Bond discount
110,040
Compensated absences
(457,728)
Other post -employment benefit obligation
(64,787) (12,667,075)
Accrued interest payable from the current portion of interest due on bonds
payable has not been reported in the governmental funds.
(5,156)
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.
589,831
Internal service funds are used by management to charge the costs of certain activities,
such as equipment management, to individual funds. The assets and liabilities of
the internal service funds must be added to the Statement of Net Assets.
1,839,927
Net assets of governmental activities
$ 407,026,659
See independent auditors' report and notes to basic financial statements.
-19-
CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended June 30, 2009
REVENUES:
Taxes
Special assessments
Intergovernmental revenue
Charges for services
Fines and forfeitures
Licenses, permits and fees
Investment income
Otherrevenues
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Highways and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDrfURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR
FUND BALANCES (DEFICIT) - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-20-
5,071,860 -
5,375,941 -
2,613,656 -
3,673,282 -
1,437,457 -
18,172,196 -
85,222
Special
Revenue Fund
-
Propostion
General
1B Bond
Fund
Fund
$ 9,119,375
$ -
5,279,845
978,356
601,533
-
1,445,324
-
792,385
24,190
1,018,956
--
18,257,418
1,002,546
5,071,860 -
5,375,941 -
2,613,656 -
3,673,282 -
1,437,457 -
18,172,196 -
85,222
1,002,546
1,404,842
-
(2,766,040)
(978,356)
(1,361,198)
(978,356)
(1,275,976)
24,190
32,929,514
7,822
$ 31,653,538 $
32,012
Capital
-
5,071,860
Projects Fund
31,535
5,407,476
Capital
Other
Total
Improvement
Governmental
Governmental
Fund
Funds
Funds
$ -
$ -
$ 9,119,375
-
550,822
550,822
685,059
5,138,206
12,081,466
-
1,460,828
1,460,828
-
-
601,533
-
-
1,445,324
-
121,478
938,053
-
-
1,018,956
685,059
7,271,334
27,216,357
-
-
5,071,860
-
31,535
5,407,476
-
2,994,214
5,607,870
-
-
3,673,282
-
508,494
1,945,951
5,508,167
-
5,508,167
-
265,000
265,000
-
187,212
187,212
5,508,167
3,986,455
27,666,818
(4,823,108)
3,284,879
(450,461)
4,759,257
489,538
6,653,637
-
(3,319,841)
(7,064,237)
j, 4,759,257
(2,830,303)
(410,600)
I
(63,851)
454,576
(861,061)
�i (361,238)
5,415,364
37,991,462
$ (425,089)
i
}
i
$ 5,869,940
$ 37,130,401
-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, 2009
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
Other post employment benefit obligation
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-
$ 2,069,531
(5,840,890)
$ (861,061)
(3,771,359)
$ 265,000
(4,585)
(21,059)
(64,787)
(46,519)
128,050
14,164
47,756
172,324
$(4,270,126)
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2009
ASSETS
CURRENT ASSETS:
Cash and investments
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
Less accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES:
Accounts payable
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report and notes to basic financial statements.
-23-
Internal
Service
-$ 2,110,581
211,580
(170,444)
41,136
2,151,717_
311,790
41,137
1,798,790_
$ 1,839,927
CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
For the year ended June 30, 2009
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
$ 189,196
65,988
23,070
278,254
(278,254)
39,978
(238,276)
410,600
172,324
1,667,603
$ 1,839,927
CITY OF DIAMOND BAR
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance payments
Payment to suppliers
NET CASH USED BY OPERATING ACTIVITIS
CASH FLOWS FROM NONCAPITAL, FINANCING ACTIVITIES:
Cash received from other funds
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
Funds
$ (393,396)
(28,648)
(422,044)
410,600
39,978
28,534
2,082,047
$ 2,110,581
$ (278,254)
23,070
(166,860)
$ (422,044)
THIS PAGE LEFT BLANK INTENTIONALLY
-26-
NOTES TO BASIC FINANCIAL STATEMENTS
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2009
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 Lava' 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 Citys 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 Bay'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 Citys 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 unifs 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 unifs governing body is substantially the
same as the Citys 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 Laud'. 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 Courts decision on
August 9, 2000, the Agency's Redevelopment Plan was deemed invalid. No activities occurred
during, the year ended June 30, 2009. 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, 2009
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Government -Wide and Fund Financial Statements:
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the City. For
the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support. The City has no business -type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds are reported as separate columns in the. fund financial
statements.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation:
The basic financial statements of the City are composed of the following:
® Government -wide financial statements
® Fund financial statements
® Notes to basic financial statements
See independent auditors' report.
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
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 departments 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 long-term liabilities, claims and
judgments, and compensated absences which are recognized as expenditures only when
payment is due.
See independent auditors' report.
-29-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): I
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 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 to the extent normally collected within
the availability period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
The accounts of the City are organized and operated on the basis of funds, each of which is
considered a separate accounting entity with a self -balancing set of accounts, established for the
purpose of carrying on specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted resources.
d. Fund Classifications:
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City and is 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 Proposition 1B Bond Special Revenue Fund is used to account for the receipt and
expenditures of Proposition 1B Bond funds from the State of California.
The Capital Improvement Capital Projects Fund is used to account for the costs of constructing
street improvements, park improvements and other public improvements not normally included
within the other Capital Projects funds. Financing is provided by developer fees and interfund
transfers from the Special Revenue Funds and the General Fund.
See independent auditors' report.
-30-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
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.
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 funds average cash and investment balances.
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.
See independent auditors' report.
-31-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Capital Assets:
Capital assets (including infrastructure) are recorded at cost where historical records are
available and at an estimated original cost where no historical records exist. Contributed
capital assets are valued at their estimated fair market value at the date of contribution. Capital
asset purchases (other than infrastructure) in excess of $1,500 are capitalized if they have an
expected useful life of three years or more.
Capital assets include additions to public domain (infrastructure), certain improvements
including roads, streets, sidewalks, medians and storm drains within the City. In the fiscal year
ended June 30, 2009, 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, 2009.
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
h. Compensated Absences:
Vacation and sick leave time begin to accumulate as of the first day of employment to a
maximum of 160 hours. Employees who accumulate sick leave in excess of 160 hours are paid
for the excess annually at one half the employees 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.
See independent auditors' report.
-32-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
h. Compensated Absences (Continued):
A liability is recorded for unused sick leave balances only to the extent that ifs probable that the
unused balances will result in termination payments. This is estimated by including in the
liability the unused balances of employees currently entitled to receive termination payments,
as well as those who are expected to become eligible to receive termination benefits as a result
of continuing their employment with the City.
If an employee terminates with a minimum of one year of service, the employee is entitled to
receive 10% of the value of his unused sick leave. The percentage increases to 50% for two to
three years of service and 100% of the value of his unused sick leave upon the completion of
more than three years of continuous employment.
i. 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.
j. 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
See independent auditors' report.
-33 -
January 1
July 1 '
November 1 - lst installment
February 1 - 2" installment
December 10 - 1" installment
April 10 - 2nd installment
December 11 - I" installment
April 11 - 2nd installment
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
k. Use of Estimates:
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.
2. CASH AND INVESTMENTS:
Cash and Investments:
Cash and investments at June 30, 2009 consisted of the following:
Statement of Net Assets:
Cash and investments
$ 40,354,654
Cash and investments with fiscal agents
326,071
$ 40,680,725
Cash and investments held by the City at June 30, 2009 consisted of
the following:
Imprest cash on hand
$ 1,246
Demand deposits
100,720
Escrow deposits
15,000
Investments:
United States Government Sponsored Enterprise Securities 6,000,000
Repurchase agreements 584,233
Local Agency Investment Fund 33,668,455
Held by Bond Trustee:
Money Market Mutual Funds 311,071
$ 40,680,725
See independent auditorg report.
-34-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government Code and the City's Investment Policy:
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the Citys investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the Citys 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 Citys investment policy.
Maximum
Maximum
Maximum
Percentage
Investment
Authorized Investment.Type
Maturity
of Portfolio'
in One Issuer
United States Treasury Obligations
5 years .
None
None
United States Government Sponsored
Enterprise Securities
5 years
40%
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
5 years
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
l * - 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
i
See independent auditors' report.
-35-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
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 Citys
investment policy. The table below identifies the investment types that are authorized for
investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
Disclosures Relating to Interest Rate Risk:
Maximum
Percentage/
Amount
Allowed
01
10%
None
None
None
None
None
Equal to six
months of
principal and
interest on
the bonds
Maximum
Investment
in One Issuer
None
None
None
None
None
None
None
None
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.
-36-
Maximum
Authorized Investment Type
Maturity
United States Treasury Obligations
None
United States Government Sponsored
Enterprise Securities
None
Banker's Acceptances
1 year
Time Certificate of Deposits
None
Local Agency Investment Fund
None
Money Market Funds
None
Repurchase Obligations
Tax Exempt
30 days
Taxable Government Money
Market Portfolios
None
Disclosures Relating to Interest Rate Risk:
Maximum
Percentage/
Amount
Allowed
01
10%
None
None
None
None
None
Equal to six
months of
principal and
interest on
the bonds
Maximum
Investment
in One Issuer
None
None
None
None
None
None
None
None
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.
-36-
IOTMRI• • :Ifflj
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk (Continued):
Information about the sensitivity of the fair values of the Citys investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity:
Remaining Maturity (in Months)
12 Months 25-60
Investment Type or Less Months Total
United States Government Sponsored
Enterprise Securities $ - $ 6,000,000 $ 6,000,000
Repurchase Agreements 584,233 - 584,233
Local Agency Investment Fund 33,668,455 - 33,668,455
Held by Bond Trustee:
Money Market Mutual Funds 311,071 - 311,071
$ 34.563,759 $ 6,000,000 $ 40,563-75-9
Disclosures Relating to Credit Risk:
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the 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 Cites investment policy, or debt agreements, and
the actual rating, as reported by Standard and Poop's, as of year end for each investment type:
N/A
Total
Minimum
as of
Legal
Investment Type
June 30, 2009
Rating
AAA Unrated
United States Government Sponsored
Enterprise Securities
$ 6,000,000
N/A
$ 6,000,000 $ -
Repurchase Agreements
584,233
N/A
- 584,233
Local Agency Investment Fund
33,668,455
N/A
- 33,668,455
Held by Bond Trustee:
Money Market Mutual Funds
311,071
A
311.071 -
Total
$ 40,5617-59 759
88
6 311 071 $ 34 252 —68-8-
N/A - Not Applicable
See independent auditors' report.
-37-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
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
Citys 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, 2009, the City
deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to
$250,000 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 Citys investment in this pool is reported in the accompanying d
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 auditorg report.
WE
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
3. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
The composition of interfimd balances as of June 30, 2009, is as follows:
Due To/From Other Funds:
Receivable Fund Payable Fund Amount
General Fund Capital Improvement Capital
Projects Fund $ 119,308
Other Governmental Funds 436,429
$ 555-737
The amounts loaned from the General Fund to the Capital Improvement Capital Projects Fund and
Other Governmental Funds are to provide short-term loans to fund temporary cash shortfalls.
Interfand Transfers:
Transfers In Transfers Out Amount
General Fund Other Governmental Funds $ 1,404,842
Capital Improvement Capital
Projects Fund General Fund 1,865,902
Proposition 1B Bond Special
Revenue Fund 978,356
Other Governmental Funds 1,914,999
Other Governmental Funds General Fund 489,538
Internal Service Funds General Fund 410,600
7,064,237
Transfers to the General Fund from the Other Governmental Funds were made to reimburse the
General Fund for various capital projects.
Transfers to the Capital Improvement Capital Projects Fund were made to provide funding for
various capital projects.
Transfers from the General Fund to the Other Governmental Funds were made to provide for debt
service payments.
Transfers from the General Fund to the Internal Service Funds were made to provide for purchases
of a vehicle and equipment and uninsured insurance losses.
See independent auditors' report.
-39-
Vj US)C • •
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
4. CAPITALASSETS:
A summary of changes in the Governmental Activities capital assets at June 30, 2009 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:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total accumulated depreciation
Total capital assets
being depreciated, net
Total Governmental Activities
capital assets, net
Balance Balance at
July 1, 2008 Additions Deletions June 30, 2009
$ 6,206,190 $ 381,159 $ - $ 6,587,349
256,536,095 - - 256,536,095
1,492,994 893,791 (1,061,164) 1,325,621
264,235,279 1,274,950 (1,061,164) 264,449,065
24,108,155
568,116
- 24,676,271
70,334
14,038
- 84,372
1,734,263
42,230
(30,068) 1,746,425
180,495,460
1,231,361
- 181,726,821
206,408,212 1,855,745 (30,068) 208,233,889
(8,912,695)
(1,199,044)
- (10,111,739)
(62,642)
(4,470)
- (67,112)
(1,081,185)
(179,814)
30,068 (1,230,931)
(76,612,673)
(4,480,632)
- (81,093,305)
(86,669,195)
(5,863,960)
30,068 (92,503,087)
119,739,017 (4,008,215) - 115,730,802
$ 383,974,296 $ (2.733,265) $ (1.061.164) $ 380,179,867
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. ,
$ ,91,870
9,240
4,509,151
13,352
1,217,277
23,070
S 5,863,960
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
5. LONG-TERM LIABILITIES:
Long-term liability activity for the year ended June 30, 2009, was as follows:
Beginning Ending Due Within
g g
Balance Additions Retirements Balance One Year
I
i Bonds payable:
Revenue bonds $ 13,025,000 $ - $ (265,000) $ 12,760,000 $ 280,000
Unamortized discount (114,625) - 4,585 (110,040) -
Compensated absences 411,209 394,614 (348,095) 457,728 350,000
Net OPEB obligation (Note 9) - 70,456 (5,669) 64,787 -
Total $ 13,321, 584 $ 465 070 $ (614,179 $ 13.172,4 75 $ 630 000
Bonds Payable:
I'
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, 2009, $12,760,000 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
j 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, 2009 the Agreement had a positive fair value of $62,838. This is the amount that the
Authority would receive in the event that the Agreement is terminated. The fair value was
estimated by the Cites financial advisor.
Credit Risk:
The Counterparty, JPMorgan Chase, has the following credit ratings o£ (i) Standard & Poofs, AA -
and (ii) Moody's, Aa2.
See independent auditors' report.
-41-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
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 Authoritys total debt service in the event that the variable rate is higher than the cap
rate of 4.5%. At June 30, 2009, the Agreement had a positive fair value of $62,838.
Payments and Associated Debt:
Using a variable rate of 1.30% as of June 30, 2009, debt service requirements of the Bonds and the ('
Counterpartys 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.
$ 12,760,000 $ 2,545.530 $ 15,305,530 $ 6,265,920 $ 21,571,450
Compensated Absences:
The Citys policies relating to compensated absences are described in Note 1. This liability,
amounting to $457,728 at June 30, 2009, is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
See independent auditors' report.
-42-
Variable Rate Debt
Counter-
Net
Year Ending
parry
Debt
June 30,
Principal
Interest
Total
Payments
Service
2010
$ 280,000
$ 165,880
$ 445,880
$ 408,320
$ 854,200
2011
290,000
162,240
452,240
399,360
851,600
2012
305,000
158,470
463,470
390,080
853,550
2013
320,000
154,505
474,505
380,320
854,825
2014
335,000
150,345
485,345
370,080
855,425
2015-2019
1,920,000
682,305
2,602,305
1,679,520
4,281,825
2020-2024
2,420,000
545,155
2,965,155
1,341,920
4,307,075
2025-2029
3,050,000
372,255
3,422,255
916,320
4,338,575
2030-2034
3,840,000
154,375
3,994,375
380,000
4,374,375
$ 12,760,000 $ 2,545.530 $ 15,305,530 $ 6,265,920 $ 21,571,450
Compensated Absences:
The Citys policies relating to compensated absences are described in Note 1. This liability,
amounting to $457,728 at June 30, 2009, is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
See independent auditors' report.
-42-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
6. LIABILITY, PROPERTY AND WORKERS! COMPENSATION PROTECTION:
The City is a member of the California Joint Powers Insurance Authority (Insurance Authority).
The Insurance Authority is composed of 122 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 Liability
Each member government pays a primary deposit to cover estimated losses for a fiscal year
(claims year). After the dose 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 non -police. Costs are allocated to members by the following methods
within each of the four layers of coverage: (1) the first $30,000 of each occurrence is charged
directly to the membefs primary deposit; (2) costs from $30,000 to $750,000 and the loss
development reserves associated with losses up to $750,000 are pooled based on the members
share of losses under $30,000; (3) losses from $750,000 to $2,000,000 and the associated loss
development reserves are pooled based on payroll; (4a) costs of covered claims from
$2,000,000 to $50,000,000 are paid under reinsurance and excess insurance policies;
(4b) subject to a $3,000,000 annual aggregate deductible; (4c) and a quota -sharing agreement
whereby the Insurance Authority is financially responsible for 40% of losses occurring within
the $2,000,000 to $10,000,000 layer. The costs associated with 4a -c are estimated using
actuarial models and pre -funded as part of the primary and retrospective deposits.
is
The overall policy limit for each member including all layers of coverage is $50,000,000 per
occurrence. Costs of covered claims for subsidence losses are paid by excess insurance with
the following sub -limits per member: $25,000,000 per occurrence with a $15,000,000 annual
aggregate.
See independent auditors' report.
- 43 -
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED):
a. Self -Insurance Programs of the Authority (Continued):
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. Costs are allocated to members by the following
methods within each of the four layers of coverage: (1) the first $50,000 of each loss is charged
directly to the member's primary deposit; (2) 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; (3) losses from $100,000 to $2,000,000 and the loss
development reserves associated with those losses are pooled based on payroll; (4) losses from
$2,000,000 up to statutory limits are paid under an excess insurance policy. Protection is
provided per statutory liability under California Workers' Compensation law. ('
Employer's liability losses are pooled among members to $2,000,000, coverage from
$2,000,000 to $4,000,000 is purchased as part of an excess insurance policy, and losses from
$4,000,000 to $10,000,000 are pooled among members.
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 property, streets, and storm drains owned by the City. Coverage is on a
claims -made basis. There is a $50,000 deductible. The Insurance Authority has a limit of
$50,000,000 for the 3 -year period from July 1, 2008 through July 1, 2011. Each member of the
Insurance Authority has a $10,000,000 limit during the 3 -year term of the policy.
See independent auditors' report.
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED):
b. Purchased Insurance (Continued):
Propegy Insurance
The City participates in the all-risk property protection program of the Insurance Authority.
This insurance protection is underwritten by several insurance companies. The Citys property is
currently insured according to a schedule of covered property submitted by the City to the
Insurance Authority. The Cit -Js 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.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $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 Balances
The following funds reported a deficit fund balance at June 30, 2009:
Major Fund:
j Capital Improvement Capital Projects Fund $ 449,501
Other Governmental Fund:
State Gas Tax Special Revenue Fund 52,791
See independent auditors' report.
-45-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
7. OTHER REQUIRED INDNIDUAL FUND DISCLOSURES (CONTINUED):
The Capital Improvement Capital Projects Fund deficit will be funded with various government
grants in future years.
The State Gas Tax Special Revenue Fund deficit will be eliminated by future receipts of highway
users tax.
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 Policy:
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 10.73% of covered payroll. The City's contributions to CalPERS for
the years ending June 30, 2009, 2008 and 2007 were $392,608, $373,818 and $344,320,
respectively and were equal to the required contribution for each year.
See independent auditors' report.
-46-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS:
Plan Description:
In connection with the retirement benefits for employees described in Note 8, the City provides
post-retirement health care benefits to retirees through the California Public Employees' Retirement
System Health Benefits program (the PERS Health program). The program is a agent multiple -
employer defined benefit health care plan that provides healthcare insurance for eligible retirees,
through the Citys group plans, which cover both active and retired employees. Employees become
eligible to retire and receive City -paid healthcare benefits upon attainment of age 50 and 5 years of
covered PERS service, or by qualifying disability retirement status. Retired employees over the age
of 65 must join one of the supplemental (Medicare -coordinated) options under the PERS Health
Program. Benefits are paid for the lifetime of the retiree. Benefit provisions are established by city
ordinance which references state statutes (the Public Employees' Medical and Hospital Care Act).
The PERS Health Program does not issue a publicly available financial report
Funding Policy:
The City sets its monthly contribution rates for health insurance on behalf of all eligible retirees
according to the PERS Health Programs statutory minimum ($97/month for calendar 2008 and
$101/month for calendar 2009, increased in all future years according to the rate of medical
inflation). The City pays a 0.45% of premium administrative charge on behalf of all retirees. The
City is currently funding this OPEB obligation on a pay-as-you-go basis. For the year ended
June 30, 2009, the City paid $5,669 in health care costs for its retirees and their covered
dependents.
Annual OPEB Cost and Net OPEB Obligation:
The City's annual OPEB cost (expense) is calculated based on the annual required contribution of
the employer (ARC), an amount actuarially determined in accordance with parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period
not to exceed thirty years.
See independent auditors' report.
-47-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED):
Annual OPEB Cost and Net OPEB Obligation (Continued):
The following table shows the components of the City's annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in the City's net OPEB obligation to the PERS Health
Program (in thousands):
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
Three -Year Trend Information:
70,456
70,456
(5,669)
64,787
64-787
For fiscal year 2009, the City's annual OPEB cost (expense) $70,456 was equal to the ARC. Since
this fiscal year is the transition year, information on the annual OPEB costs, the percentage of
annual OPEB cost contributed to the plan, and the net OPEB obligation is only available for the
current fiscal year, as presented below:
Percentage
Fiscal Annual of Annual Net
Year OPEB Actual OPEB Cost OPEB
Ended Cost Contributions Contributed Obligation
6/30/09 $ 70,456 $ 5,669 8.05% $ 64,787
Funded Status and Funding Progress:
As of July 1, 2008, the most current actuarial valuation date, the plan was zero percent funded. The
actuarial accrued liability for benefits was $402,007 and the actuarial value of assets was zero,
resulting in an unfunded actuarial accrued liability (UAAL) of $402,007. The covered payroll
(annual payroll of active employees covered by the plan) was $3,657,956 and the ratio of the
UAAL to the covered payroll was 10.99%.
See independent auditors' report.
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
9. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED):
Funded Status and Funding Progress Continued):
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about rates of employee turnover, retirement, mortality, as well as economic
assumptions regarding claim costs per retiree, healthcare inflation and interest rates. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
jemployer are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multi-year
trend information about whether the actuarial value of plan assets is increasing or decreasing over
time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions:
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include the types of benefits provided at
the time of each valuation and the historical pattern of sharing of benefit costs between the
employer and the plan members at that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets consistent with the long-term perspective of the
calculations.
In the July 1, 2008, actuarial valuation, the projected unit credit method was used. The actuarial
assumptions included a discount rate of 5.0% per annum, a rate of return on assets of 5.0% per
annum and a healthcare cost trend rate of 8.0% initially, reduced by annual decrements of 1.0% to
an ultimate rate of 5.0% after three years. The Cit -Js unfunded actuarial accrued liability will be
amortized as a level dollar over an open period of 30 years.
10 CONTINGENCIES:
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.
II
See independent auditorg report.
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2009
11. CONSTRUCTION COMMITMENTS:
The following material construction commitments existed at June 30, 2009:
Project Name
Park Improvements
Street Improvements
Traffic Signals
Expenditures as of
Remaining
June 30 2009
Commitments
$ 66,549
$ 100,193
96,804
1,493,934
486,778
496,297
$ 650,131
$ 2.090,424
The City leases building and office facilities under noncancelable operating leases. The total costs
for such leases were $264,151 for the year ended June 30, 2009. The future minimum lease
payments for the lease of building and office facilities are as follows:
Year Ending
June 30,
2010
2011
Total
See independent auditors report.
-50-
$ 268,997
179,332
$ 448,329
REQUIRED SUPPLEMENTARY INFORMATION
THIS PAGE LEFT BLANK INTENTIONALLY
SCHEDULE OF FUNDING PROGRESS
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
-51-
M116,9432
SCHEDULE OF FUNDING PROGRESS
For the year ended June 30, 2009
POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Note 9
See independent auditors' report and notes to basic financial statements.
-52-
Unfunded
Actuarial
Entry Age
Unfunded
Accrued
Actuarial
Actuarial
Actuarial
Funded
Liability as a
Actuarial
Asset
Accrued
Accrued
Ratio
Covered
Percentage of
Valuation
Value
Liability
Liability
AVA
Payroll
Covered Payroll
Date
(a)
(b)
(b) - (a)
(a)/(b)
(c)
[(b)-(a)]/(c)
07/01/08
$ -
$ 402,007
$ 402,007
0.00%
$ 3,657,956
10.99%
See independent auditors' report and notes to basic financial statements.
-52-
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 FUND
The Proposition 113 Bond Fund is used to account for the receipt and expenditures of Proposition 1B
Bond funds from the State of California.
-53-
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the year ended June 30, 2009
REVENUES:
Taxes
Intergovernmental revenue
Fines and forfeitures
Licenses, permits and fees
Investment income
Otherrevenues
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 EXPENDI'T'URES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER
FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
$ 9,442,000
$ 9,342,000
$ 9,119,375
$ (222,625)
4,845,000
5,435,470
5,279,845
(155,625)
532,900
532,900
601,533
68,633
1,964,660
1,559,240
1,445,324
(113,916)
725,000
725,000
792,385
67,385
1,890,730
784,746
1,018,956
234,210
19,400,290
18,379,356
18,257,418
(121,938)
173,700
188,700
152,626
36,074
1,054,590
1,034,090
972,780
61,310
210,000
460,000
463,059
(3,059)
440,850
411,960
408,762
3,198
209,520
196,480
190,661
5,819
884,770
1,168,718
945,850
222,868
1,574,250
2,089,145
1,424,701
664,444
528,100
515,100
513,421
1,679
5,075,780
6,064,193
5,071,860
992,333
5,210,400
5,308,400
5,206,696
101,704
11,360
11,360
7,359
4,001
125,300
125,300
124,180
1,120
43,940
60,816
37,706
23,110
5,391,000
5,505,876
5,375,941
129,935
1,382,880
2,855,699
2,613,656
242,043
3,854,870
3,720,901
3,673,282
47,619
3,038,520
1,807,808
1,437,457
370,351
18,743,050
19,954,477
18,172,196
1,782,281
657,240
(1,575,121)
85,222
1,660,343
1,418,485
1,458,485
1,404,842
(53,643)
(1,588,350)
(3,022,475)
(2,766,040)
256,435
(169,865)
(1,563,990)
(1,361,198)
202,792
487,375
(3,139,111)
(1,275,976)
1,863,135
32,929,514 32,929,514 32,929,514 -
FUND BALANCE - END OF YEAR $ 33,416,889 $ 29,790,403 $ 31,653,538 $ 1,863,135
See independent auditors' report and note to required supplementary information.
-54-
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION 1B BOND SPECIAL REVENUE FUND
For the year ended June 30, 2009
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue $ 913,324 $ 913,324
$ 978,356
$ 65,032
Investment income 15,000 15,000
24,190
9,190
TOTAL REVENUES 928,324 928,324
1,002,546
74,222
OTHER FINANCING USES:
Transfers out (1,613,324) (2,256,713)
(978,356)
1,278,357
NET CHANGE IN FUND BALANCE (685,000) (1,328,389)
24,190
1,352,579
JFUND BALANCE - BEGINNING OF YEAR 7,822 7,822
7,822
-
FUND BALANCE - END OF YEAR $ (677,178) $ (1,320,567)
$ 32,012
$ 1,352,579
r
See independent auditors' report and note to required supplementary information.
-55-
CITY OF DIAMOND BAR
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2009
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 Fund, Special Revenue Funds and Capital Projects
Fund 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. An annual budget is
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, 2009, supplemental appropriations in the amount of $6,337,545 were made.
e. Formal budgetary integration is employed as a management control device. Commitments for
materials and services, such as purchase orders and contracts, are recorded during the year as
encumbrances to assist in controlling expenditures. Appropriations which are encumbered at
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.
-56-
SUPPLEMENTARY INFORMATION
THIS PAGE LEFT BLAND INTENTIONALLY
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2009
ASSETS
Cash and investments
Cash and investments with fiscal agents
Accounts receivable
Due from other governments
Notes receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued payroll
Due to other funds
Deferred revenue
Advances from other governments
TOTAL LIABILITIES
FUND BALANCES:
Reserved for:
Encumbrances
Debt service
Unreserved reported in:
Special revenue funds
TOTAL FUND BALANCES
TOTAL LIABILITIES
AND FUND BALANCES
See independent auditors' report.
-57-
Debt
Service Fund Total
Special
Public
Other
Revenue
Financing
Governmental
Funds
Authority
Funds
$ 5,201,695
$ -
$ 5,201,695
-
311,071
311,071
88,608
-
88,608
1,115,832
-
1,115,832
243,057
-
243,057
$ 6,649,192
$ 311,071
$ 6,960,263
$ 336,316 $
- $ 336,316
6,862
- 6,862
436,429
- 436,429
79,227
- 79,227
231,489
- 231,489
1,090,323
- 1,090,323
59,696
- 59,696
-
311,071 311,071
5,499,173
- 5,499,173
5,558,869
311,071 5,869,940
$ 6,649,192 $
311,071 $ 6,960,263
III V%ro4
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANCES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2009
REVENUES:
Special assessments
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
Highways and streets
Community development
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
.OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
See independent auditors' report.
-59-
Debt
Service Fund Total
Special
Public
Other
Revenue
Financing
Governmental
Funds
Authority
Funds
$ 550,822
$ -
$ 550,822
5,138,206
-
5,138,206
1,460,828
-
1,460,828
120,571
907
121,478
7,270,427
907
7,271,334
31,535
-
31,535
2,994,214
-
2,994,214
508,494
-
508,494
-
265,000
265,000
-
187,212
187,212
3,534,243
452,212
3,986,455
3,736,184
(451,305)
3,284,879
36,695
452,843
489,538
(3,319,841)
-
(3,319,841)
(3,283,146)
452,843
(2,830,303)
453,038
1,538
454,576
5,105,831
309,533
5,415,364
$ 5,558,869
$ 311,071
$ 5,869,940
a 91,8151
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 Citys
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 Citys 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 �(
1..
revenues received from the California CLEEP fund and expenditures made for the purchase of
high-technology equipment.
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
Proposition A Transit Fund - This fund is used to account for the receipt and expenditure of the CitYs
share of the'/2 cent sales tax levied in Los Angeles County for local transit purposes.
Community Development Block Grant (CDBG) F - This fund is used to account for the Citys
allotment of CDBG fonds 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
Cit -Js 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.
Landscape Maintenance District Fund - This fund is used to account of revenues and expenditures
related to the special property tax assessments which were set up in accordance with the Landscape
and Lighting Art of 1972. The purpose of these districts is to improve the landscaping of City owned
medians and hillsides.
Park and Facility Development Fund - This fund is used to account for the development and
enhancement of the Citys parks.
-61-
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2009
Proposition
State C
ASSETS
Cash and investments $ - $ 1,690,086
Accounts receivable - -
Due from other governments 79,227 -
Notes receivable - -
TOTAL ASSETS $ 79,227 $ 1,690,086
LIABILITIES AND FUND BALANCES
Accounts payable
$ -
$ 1,902
Accrued payroll
-
-
Due to other funds
52,791
-
Deferred revenue
79,227
-
Advances from other governments
-
-
TOTAL LIABILITIES
132,018
1,902
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
-
29,312
Unreserved
(52,791)
1,658,872
TOTAL FUND BALANCES (DEFICIT)
(52,791)
1,688,184
TOTAL LIABILITIES AND FUND BALANCES
$ 79,227
$ 1,690,086
See independent auditors' report.
WIM
Integrated
Traffic
Air
Waste
Traffic
Congestion
Quality Trails &
ISTEA Management
Improvement
Relief
Improvement Bikeways
$ - $ 332,932
$ 393,255
$ 356,649
$ 145,618 $ -
- 88,608
-
-
- -
850,187 1,569
-
121,732
- -
- 11,568
-
-
- -
$ 850,187 $ 434,677
$ 393,255
$ 478,381
$ 145,618 $ -
$ - $ 10,028 $ 7,324-
1,987 - - - -
377,026 - - - - -
377,026 12,015 7,324 - -
- - 17,416 - - -
473,161 422,662 368,515 478,381 145,618 -
473,161 422,662 385,931 478,381 145,618 -
$ 850,187 $ 434,677 $ 393,255 $ 478,381 $ 145,618 $ -
(Continued)
-63-
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2009
ASSETS
Cash and investments
Accounts receivable
Due from other governments
Notes receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued payroll
Due to other funds
Deferred revenue
Advances from other governments
TOTAL LIABILITIES
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
Unreserved
TOTAL FUND BALANCES (DEFICIT)
TOTAL LIABILITIES AND FUND BALANCES
See independent auditors' report.
-64-
Proposition
A
CLEEP Transit
$ 62,912 $ 481,453
$ 62,912 $ 481,453
$ 6,266 $ 196,395
- 4,504
6,266 200,899
56,646 280,554
$ 62,912 $ 481,453
$ 41,163 $ - $
371 -
6,612 -
231,489 -
279,635 -
$ 59,188 $
59,188
14,050 $ 336,316
- 6,862
436,429
79,227
14,050 1,090,323
- - - 12,968 59,696
119,315 365,521 137,920 1,044,799 5,499,173
119,315 365,521 137,920 1,057,767 5,558,869
$ 279,635 $ 119,315 $ 365,521 $ 197,108 $ 1,071,817 $ 6,649,192
-65-
Total
Landscape
Park and
Other
Asset
Maintenance
Facility
Special
CDBG
COPS
Seizure
District
Development
Revenue Funds
$ -
$ 116,062
$ 365,521
$ 185,390
$ 1,071,817
$ 5,201,695
_
_
-
-
-
88,608
48,146
3,253
-
11,718
-
1,115,832
231,489
-
-
-
-
243,057
$ 279,635
$ 119,315
$ 365,521
$ 197,108
$ 1,071,817
$ 6,649,192
$ 41,163 $ - $
371 -
6,612 -
231,489 -
279,635 -
$ 59,188 $
59,188
14,050 $ 336,316
- 6,862
436,429
79,227
14,050 1,090,323
- - - 12,968 59,696
119,315 365,521 137,920 1,044,799 5,499,173
119,315 365,521 137,920 1,057,767 5,558,869
$ 279,635 $ 119,315 $ 365,521 $ 197,108 $ 1,071,817 $ 6,649,192
-65-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2009
REVENUES:
Special assessments
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDI'T'URES:
Current:
Public safety
Highways and streets
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 BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES (DEFICIT) - END OF YEAR
See independent auditors' report.
-66-
20,688
20,688
877,624 741,723
(1,097,300)
Proposition
-- - State
C
Gas Tax
Transit
161,538
166,885
875,912
723,318
1,712
39,093
877,624
762,411
20,688
20,688
877,624 741,723
(1,097,300)
(580,185)
(1,097,300)
(580,185)
(219,676)
161,538
166,885
1,526,646
$ (52,791) $ 1,688,184
Integrated
-
Trak
Air
Waste
Trak
Congestion
Quality Trails &
ISTEA Management
Improvement
Relief
Improvement Bikeways
-
197,550
1,271,633 24,302
225,000
510,814
51,419 -
- 472,234
-
-
- -
- 6,946
9,797
3,130
346 -
1,271,633 503,482
234,797
513,944
51,765 -
-
-
87,584
-
-
-
-
197,550
-
-
9,700
-
-
197,550
87,584
-
9,700
-
1,271,633
305,932
147,213
513,944
42,065
-
(798,472)
(156,358)
(132,052)
(35,563)
-
(9,756)
(798,472)
(156,358)
(132,052)
(35,563)
-
(9,756)
473,161
149,574
15,161
478,381
42,065
(9,756)
-
273,088
370,770
-
103,553
9,756
473,161
$ 422,662
$ 385,931
$ 478,381
$ 145,618 $
-
(Continued)
-67-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENDTI'URES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2009
REVENUES:
Special assessments
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
Highways and streets
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 BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES (DEFICIT) - END OF YEAR
See independent auditors' report.
-68-
Proposition
A
- 868,439
- 988,594
1,843 17,014
1,843 1,874,047
25,303 -
- 2,297,081
25,303 2,297,081
(23,460) (423,034)
(23,460) (423,034)
80,106 703,588
$ 56,646 $ 280,554
-
6,232
-
-
Total
31,535
Landscape
Park and
Other
Asset
Maintenance
Facility
Special
CDBG COPS
Seizure
District
Development
Revenue Funds
$ - $ -
$ -
$ 550,822
$ -
$ 550,822
357,799 78,253
-
-
151,317
5,138,206
- -
-
-
-
1,460,828
- 1,993
8,395
2,699
27,603
120,571
357,799 80,246
8,395
553,521
178,920
7,270,427
-
6,232
-
-
-
31,535
588,861
2,994,214
170,364
-
-
-
130,880
508,494
170,364
6,232
-
588,861
130,880
3,534,243
187,435
74,014
8,395
(35,340)
48,040
3,736,184
-
-
-
36,695
-
36,695
(187,437)
(30,000)
-
-
(292,718)
(3,319,841)
(187,437)
(30,000)
-
36,695
(292,718)
(3,283,146)
(2)
44,014
8,395
1,355
(244,678)
453,038
2
75,301
357,126
136,565
1,302,445
5,105,831
$ - $
119,315 $
365,521 $
137,920
$ 1,057,767
$ 5,558,869
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, 2009
See independent auditors' report.
-70-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 1,265,934
$ 1,099,050
$ 875,912
$ (223,138)
Investment income
5,000
5,000
1,712
(3,288)
TOTAL REVENUES
1,270,934
1,104,050
877,624
(226,426)
OTHER FINANCING USES:
Transfers out
(1,186,900)
(1,191,900)
(1,097,300)
94,600
NET CHANGE IN FUND BALANCE
84,034
(87,850)
(219,676)
(131,826)
FUND BALANCE - BEGINNING OF YEAR
166,885
166,885
166,885
-
FUND BALANCE (DEFICIT) - END OF YEAR
$ 250,919
$ 79,035
$ (52,791)
$ (131,826)
See independent auditors' report.
-70-
. 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, 2009
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue $ 820,926 $ 820,926 $
723,318
$ (97,608)
Investment income 25,000 25,000
39,093
14,093
TOTAL REVENUES 845,926 845,926
762,411
(83,515)
EXPENDITURES:
Current:
Highways and streets 130,000 130,000
20,688
109,312
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 715,926 715,926
741,723
25,797
OTHER FINANCING USES:
Transfers out (714,000) (714,000)
(580,185)
133,815
NET CHANGE IN FUND BALANCE 1,926 1,926
161,538
159,612
FUND BALANCE - BEGINNING OF YEAR 1,526,646 1,526,646
1,526,646
-
FUND BALANCE - END OF YEAR $ 1,528,572 $ 1,528,572 $
1,688,184
$ 159,612
See independent auditors' report.
-71-
I
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, 2009
See independent auditors' report.
-72-
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 1,372,000 $ 1,319,451
$ 1,271,633
$ (47,818)
OTHER FINANCING USES:
Transfers out
(1,372,000) (1,319,451)
(798,472)
520,979
NET CHANGE IN FUND BALANCE
- -
473,161
473,161
FUND BALANCE - BEGINNING OF YEAR
- -
-
-
FUND BALANCE - END OF YEAR
$ - $ -
$ 473,161
$ 473,161
See independent auditors' report.
-72-
tSee independent auditors' report.
-73-
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, 2009
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
$ 41,500 $ 41,500 $
24,302
$ (17,198)
Intergovernmental revenue
223,000 223,000
472,234
249,234
Charges for services
10,000 10,000
6,946
(3,054)
Investment income
TOTAL REVENUES
274,500 274,500
503,482
228,982
EXPENDITURES:
j Current:
Community development
269,870 269,870
197,550
72,320
EXCESS OF REVENUES OVER
4,630 4,630
305,932
301,302
(UNDER) EXPENDITURES
OTHER FINANCING USES:
(185,000) (185,000)
(156,358)
28,642
Transfers out
NET CHANGE IN FUND BALANCE
(180,370) (180,370)
149,574
329,944
FUND BALANCE - BEGINNING OF YEAR
273,088 273,088
273,088
-
FUND BALANCE - END OF YEAR
$ 92,718 $ 92,718 $
422,662
$ 329,944
tSee independent auditors' report.
-73-
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, 2009
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Highways and streets
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-74-
Variance with j
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative) 1
$ 280,000
$ 280,000
$ 225,000
$ (55,000)
20,000
20,000
9,797
(10,203)
300,000
300,000
234,797
(65,203)
80,000
105,000
87,584
17,416
220,000
195,000
147,213
(47,787)
(230,000)
(245,435)
(132,052)
113,383
(10,000)
(50,435)
15,161
65,596
370,770
370,770
370,770
-
$ 360,770
$ 320,335
$ 385,931
$ 65,596
-74-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND
For the year ended June 30, 2009
See independent auditors' report.
-75-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 579,588
$ 579,588
$ 510,814
$ (68,774)
Investment income
15,000
15,000
3,130
(11,870)
TOTAL REVENUES
594,588
594,588
513,944
(80,644)
OTHER FINANCING USES:
(579,588)
(579,588)
(35,563)
544,025
Transfers out
NET CHANGE IN FUND BALANCE
15,000
15,000
478,381
463,381
FUND BALANCE - BEGINNING OF YEAR
-
-
-
FUND BALANCE - END OF YEAR
$ 15,000
$ 15,000
$ 478,381
$ 463,381
See independent auditors' report.
-75-
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
For the year ended June 30, 2009
64,890 75,646 9,700 65,946
16,110 5,354 42,065 36,711
103,553 103,553 103,553 -
$ 119,663 $ 108,907 $ 145,618 $ 36,711
-76-
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual (Negative)
$ 73,000 $ 73,000
$ 51,419 $ (21,581)
8,000 8,000
346 (7,654)
81,000 81,000
51,765 (29,235)
64,890 75,646 9,700 65,946
16,110 5,354 42,065 36,711
103,553 103,553 103,553 -
$ 119,663 $ 108,907 $ 145,618 $ 36,711
-76-
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, 2009
See independent auditors' report.
-77-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 35,959
$ 35,859
$ -
$ (35,859)
OTHER FINANCING USES:
Transfers out
-
(9,756)
(9,756)
-
NET CHANGE IN FUND BALANCE
35,959
26,103
(9,756)
(35,859)
FUND BALANCE - BEGINNING OF YEAR
9,756
9,756
9,756
-
FUND BALANCE - END OF YEAR
$ 45,715
$ 35,859
$ -
$ (35,859)
See independent auditors' report.
-77-
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, 2009
See independent auditors' report.
-78-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Investment income
$ 4,000
$ 4,000
$ 11,843
$ (2,157)
EXPENDITURES:
Current:
Public safety
84,106
85,456
25,303
60,153
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(80,106)
(81,456)
(23,460)
57,996
FUND BALANCE - BEGINNING OF YEAR
80,106
80,106
80,106
-
FUND BALANCE - END OF YEAR
$ -
$ (1,350)
$ 56,646
$ 57,996
See independent auditors' report.
-78-
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, 2009
r
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue $ 989,570 $ 989,570 $
868,439
$ (121,131)
Charges for services 900,000 1,000,000
988,594
(11,406)
Investment income 30,000 30,000
17,014
(12,986)
' TOTAL REVENUES 1,919,570 2,019,570
it
1,874,047
(145,523)
EXPENDITURES:
Current:
Highways and streets 2,329,496 2,589,496
2,297,081
292,415
f EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (409,926) (569,926)
(423,034)
146,892
OTHER FINANCING USES:
Transfers out - (50,770)
-
50,770
NET CHANGE IN FUND BALANCE (409,926) (620,696)
i
(423,034)
197,662
FUND BALANCE - BEGINNING OF YEAR 703,588 703,588
703,588
-
FUND BALANCE - END OF YEAR $ 293,662 $ 82,892 $
280,554
$ 197,662
See independent auditors' report.
-79-
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, 2009
See independent auditors' report.
-80-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 497,223
$ 628,359
$ 357,799
$ (270,560)
EXPENDITURES:
Current:
Community development
239,007
239,007
170,364
68,643
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
258,216
389,352
187,435
(201,917)
OTHER FINANCING USES:
Transfers out
(258,216)
(389,352)
(187,437)
201,915
NET CHANGE IN FUND BALANCE
-
-
(2)
(2)
FUND BALANCE - BEGINNING OF YEAR
2
2
2
-
FUND BALANCE - END OF YEAR
$ 2
$ 2
$ -
$ (2)
See independent auditors' report.
-80-
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, 2009
Ii
`I
See independent auditors' report.
-81-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ -
$ -
$ 78,253
$ 78,253
Investment income
500
500
1,993
1,493
TOTAL REVENUES
500
500
80,246
79,746
EXPENDITURES:
Current:
Public safety
6,900
6,900
6,232
668
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(6,400)
(6,400)
74,014
80,414
OTHER FINANCING USES:
Transfers out
(30,000)
(30,000)
(30,000)
-
NET CHANGE IN FUND BALANCE
(36,400)
(36,400)
44,014
80,414
FUND BALANCE - BEGINNING OF YEAR
75,301
75,301
75,301
-
FUND BALANCE - END OF YEAR
$ 38,901
$ 38,901
$ 119,315
$ 80,414
Ii
`I
See independent auditors' report.
-81-
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, 2009
REVENUES:
Investment income
EXPENDITURES:
Current:
Public safety
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ - 20,000 $ 20,000 $
50,000 50,000
Variance with
Final Budget
Positive
Actual (Negative)
8,395 $ (11,605)
50,000
(30,000) (30,000) 8,395 38,395
357,126 357,126 357,126 -
$ 327,126 $ 327,126 $ 365,521 $ 38,395
-82-
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, 2009
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
REVENUES:
Special assessments $ 551,562 $ 551,562
550,822
$ (740)
Investment income 4,200 4,200
2,699
(1,501)
TOTAL REVENUES 555,762 555,762
553,521
(2,241)
EXPENDITURES:
Current:
Highways and streets 700,077 722,836
588,861
133,975
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (144,315) (167,074)
(35,340)
131,734
OTHER FINANCING SOURCES:
Transfers in 83,142 103,142
36,695
(66,447)
NET CHANGE IN FUND BALANCE (61,173) (63,932)
1,355
65,287
FUND BALANCE - BEGINNING OF YEAR 136,565 136,565
136,565
-
FUND BALANCE - END OF YEAR $ 75,392 $ 72,633 $
137,920
$ 65,287
See independent auditors' report.
-83-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PARK AND FACILITY DEVELOPMENT SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
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.
For the year ended June 30, 2009
Budgeted Amounts
Original Final
$ 168,523 $ 183,523
52,000 52,000
220,523 235,523
150,000
Variance with
130,880
Final Budget
Positive
Actual
(Negative)
$ 151,317
$ (32,206)
27,603
(24,397)
178,920
(56,603)
150,000
294,586
130,880
163,706
70,523
(59,063)
48,040
107,103
(304,163)
(427,706)
(292,718)
134,988
(233,640)
(486,769)
(244,678)
242,091
1,302,445
1,302,445
1,302,445
-
$ 1,068,805 $ 815,676 $ 1,057,767 $ 242,091
-84-
MAJOR CAPITAL PROJECTS FUND
account for fin cial resources to be used for the acquisition or
The Capital Projects Fund is used to acco an
constr I uction 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 interfand transfers from the
Special Revenue Funds and the General Fund.
9N. M
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND - MAJOR FUND
For the year ended June 30, 2009
See independent auditors' report.
-86-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 817,834
$ 1,431,155
$ 685,059
$ (746,096)
Licenses, permits and fees
250,000
250,000
-
(250,000)
TOTAL REVENUES
1,067,834
1,681,155
685,059
(996,096)
EXPENDITURES:
Capital outlay
7,197,148
11,858,815
5,508,167
6,350,648
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(6,129,314)
(10,177,660)
(4,823,108)
5,354,552
OTHER FINANCING SOURCES:
Transfers in
6,129,314
8,424,920
4,734,845
(3,690,075)
NET CHANGE IN FUND BALANCE
-
(1,752,740)
(88,263)
1,664,477
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
(361,238)
(361,238)
(361,238)
-
FUND BALANCE (DEFICIT) -
END OF YEAR
$ (361,238)
$ (2,113,978)
$ (449,501)
$ 1,664,477
See independent auditors' report.
-86-
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 Cites general liability
insurance premiums.
Equipment Rpplacement Fund - This fund is used to account for the replacement of the Citys rolling
equipment stock or vehicles.
Computer Replacement Fund - This fund is used to account for the replacement and/or enhancement of
the Citys computer-related equipment.
CITY OF DIAMOND BAR
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
June 30, 2009
See independent auditors' report.
-88-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
ASSETS
CURRENT ASSETS:
Cash and investments
$ 1,363,354
$ 247,002
$ 500,225
$ 2,110,581
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
-
182,206
29,374
211,580
Less accumulated depreciation
-
(155,436)
(15,008)
(170,444)
TOTAL NONCURRENT ASSETS
-
26,770
14,366
41,136
TOTAL ASSETS
1,363,354
273,772
514,591
2,151,717
LIABILITIES
CURRENT LIABILITIES:
Accounts payable
269,388
-
42,402
311,790
NET ASSETS
Invested in capital assets
-
26,770
14,366
41,136
Unrestricted
1,093,966
247,002
457,823
1,798,791
TOTAL NET ASSETS
$ 1,093,966
$ 273,772
$ 472,189
$ 1,839,927
See independent auditors' report.
-88-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2009
See independent auditors' report.
-89-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
OPERATING EXPENSES:
Insurance premiums
$ 189,196
$ -
$ -
$ 189,196
Maintenance and operations
-
-
65,988
65,988
Depreciation
-
19,478
3,592
23,070
TOTAL OPERATING EXPENSES
189,196
19,478
69,580
278,254
OPERATING LOSS
(189,196)
(19,478)
(69,580)
(278,254)
NONOPERATING REVENUES:
Investment income
26,451
5,221
8,306
39,978
LOSS BEFORE TRANSFERS
(162,745)
(14,257)
(61,274)
(238,276)
TRANSFERS IN
231,700
19,400
159,500
410,600
CHANGE IN NET ASSETS
68,955
5,143
98,226
172,324
TOTAL NET ASSETS -
BEGINNING OF YEAR
1,025,011
268,629
373,963
1,667,603
TOTAL NET ASSETS - END OF YEAR
$ 1,093,966
$ 273,772
$ 472,189
$ 1,839,927
See independent auditors' report.
-89-
CITY OF DIAMOND BAR
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2009
See independent auditors' report.
-90-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance payments
$
(393,396)
$ -
$
-
$
(393,396)
Payments to suppliers
-
-
(28,648)
(28,648)
NET CASH USED BY
OPERARING ACTIVITIES
(393,396)
-
(28,648)
(422,044)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from other funds
231,700
19,400
159,500
410,600
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
26,451
5,221
8,306
39,978
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
(135,245)
24,621
139,158
28,534
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
1,498,599
222,381
361,067
2,082,047
CASH AND CASH EQUIVALENTS -
END OF YEAR
$
1,363,354
$ 247,002
$
500,225
$
2,110,581
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
$
(189,196)
$ (19,478)
$
(69,580)
$
(278,254)
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation
-
19,478
3,592
23,070
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable
(204,200)
-
37,340
(166,860)
NET CASH USED BY
OPERATING ACTIVITIES
$
(393,396)
$ -
$
(28,648)
$
(422,044)
See independent auditors' report.
-90-
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2009
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. 92-99
Revenue Capacity - These schedules contain information to help the reader
assess the City's most significant local revenue source, the property tax. 101-105
(, Debt Capaciiy - These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt and the City's
ability to issue additional debt in the future. 106-108
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. 109-110
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. 111 - 113
-91-
City of Diamond Bar
Net Assets by Component
Last Seven 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
L45,887,235
$ 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
-92-
Fiscal Year Ended June 30,
2007 2008 2009
$ 375,216,400 $ 370,949,296 $ 367,529,907
321,747
309,533
305,915
f,.. 3,446,872
2,912,276
3,526,991
1,013,495
889,176
1,109,762
34,072,884
36,236,504
34,554,084
$ 414,071,398
$ 411,296,785
$ 407,026,659
-93-
Expenses:
Governmental -activities:
General government
Public safety
Highways and streets
Community development
Parks, recreation and culture
Interest and fiscal charges
Total expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Highways and streets
Community development
Parks, recreation and culture
Operating grants and contributions
Capital grants and contributions
Total program revenues
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Property taxes in lieu of sales taxes
Franchise taxes
Property transfer tax
Other taxes
Unrestricted motor vehicle in lieu
Investment income
Other revenue
Total general revenues
Change in net assets
City of Diamond Bar
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30,
2003 2004 2005 2006
$ 3,315,082
$ 3,713,530
$ 3,997,319
$ 4,203,123
4,988,449
4,875,823
4,969,183
5,418,005
1,006,768
1,365,737
4,622,014
5,240,568
3,370,116
5,724,606
1,050,025
2,759,718
2,309,150
2,580,454
3,814,887
3,737,071
535,752
171,223
270,735
423,320
15,525,317
18,431,373
18,724,163
21,781,805
74,805
225,656
486,925
707,272
813,617
733,902
1,159,264
1,277,170
517,930
529,330
1,328,637
1,555,993
908,330
933,985
7,888
16,841
558,227
610,772
1,147,088
1,260,849
4,390,722
4,068,446
4,040,785
5,281,308
1,779,510
261,994
-
1,150
9,043,141
7,364,085
8,170,587
10,100,583
2,692,723
2,682,872
3,155,723
6,769,553
578,680
628,564
717,879
718,889
2,965,292
3,167,901
2,645,096
2,964,877
-
-
863,245
984,472
828,242
912,531
941,319
996,567
367,638
367,464
413,247
416,423
34,989
35,077
35,283
35,522
3,370,387
2,716,134
4,386,800
413,230
439,455
182,069
532,091
1,051,922
84,795
250,250
676,292
361,622
11,362,201
10,942,862
14,366,975
14,713,077
$ 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
-94-
Fiscal Year Ended June 30,
2007 2008 2009
$ 4,784,314
$ 4,473,666
$ 5,159,300
4,876,435
4,944,729
5,396,083
14,019,550
12,034,669
13,931,211
2,292,757
2,251,196
1,959,303
4,779,588
5,188,977
4,950,687
498,042
392,548
177,633
31,250,686
29,285,785
31,574,217
( 262,541
225,553
132,262
1,512,195
1,176,931
1,017,336
3,493,798
2,851,187
1,732,985
21,297
23,351
17,602
1,385,788
1,581,597
1,705,282
6,968,824
4,307,074
5,588,818
1,254,314
219,193
2,272,580
14,898,757
10,384,886
12,466, 865
7,727,580
8,194,270
8,460,356
800,390
633,075
i774,757
2,935,703
3,114,562
2,166,782
1,007,642
987,615
918,441
1,064,621
1,024,710
1,093,039
331,096
283,433
199,365
33,822
33,865
33,888
350,194
262,064
194,547
1,476,010
1,420,989
833,270
i 41,362
4,388
304,463
15,742,787 16,126,286 14,837,226
$ (609,142) $ (2,774,613) $ (4,270,126)
-95-
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 Seven Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 30,
2003
2004
2005
2006
8,030,278
$ 440,407
$ 866,843
$ 1,125,918
$ 1,310,172
21,913,219
21,796,659
24,809,721
25,103,444
241,767
(5,443,309)
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
5,485,933
-
505,915
274,426
-
268,317
241,767
(5,443,309)
(2,612,373)
14,018,456
6,896,895
6,498,307
5,148,389
$ 36,372,082
$ 29,560,397
$ 32,433,946
$ 31,562,005
The City has elected to show only seven years of data for this schedule.
Source: City Finance Department
-96-
Fiscal Year Ended June 30,
2007
2008
2009
i $ 1,893,287
$ 1,864,387
$ 1,612,181
28,568,263
31,065,127
30,041,357
30,461,550
32,929,514
31,653,538
3,311,451
5,810,250
2,622,908
5,736,366
4,955,552
5,531,185
(4,681,728)
(5,703,854)
(2,677,230)
4,366,089
5,061,948
5,476,863
$ 34,827,639
$ 37,991,462
$ 37,130,401
�S!
City of Diamond Bar
Changes in Fund Balances, Governmental Funds
Last Seven Fiscal Years
(modified accrual basis of accounting)
The City has elected to show only seven years of data for this schedule.
Source: City Finance Department
-98-
Fiscal Year Ended June 30,
2003
2004
2005
2006
Revenues:
Taxes
$ 7,432,575
$ 7,759,331
$ 8,632,837
$ 9,508,757
Special assessments
557,601
555,232
593,778
504,908
Intergovernmental
8,602,856
6,353,152
8,306,557
8,821,141
Charges for services
706,137
709,011
761,040
870,314
Fines and forfeitures
813,617
733,903
713,201
589,922
Licenses and permits
1,467,127
1,457,345
1,732,555
2,389,149
Investment income
658,922
395,929
654,066
1,250,570
Other revenues
74,818
234,951
480,740
792,216
Total revenues
20,313,653
18,198,854
21,874,774
24,726,977
Expenditures:
Current:
General government
3,163,516
3,663,055
3,787,005
3,551,659
Public safety
4,973,248
4,857,179
4,954,630
5,404,259
Highway and streets
1,006,768
1,365,737
4,301,146
4,769,497
Parks, recreation and culture
1,946,025
2,114,090
2,750,815
2,613,834
Community development
2,808,613
3,419,856
1,050,025
2,748,539
Capital outlay
8,057,482
9,261,289
1,682,830
5,320,597
Debt service:
Principal
-
-
-
235,000
Interest charges
86,562
145,580
237,487
404,075
Fiscal charges
1,080,940
-
-
-
Total expenditures
23,123,154
24,826,786
18,763,938
25,047,460
Excess of revenues over (under) expenditures
(2,809,501)
(6,627,932)
3,110,836
(320,483)
Other financing sources (uses):
Bond issued
13,755,000
-
-
_
Bonds discount and issuance costs
(769,300)
-
-
-
Transfers in
10,259,848
9,906,970
2,363,367
6,469,523
Transfers out
(10,453,243)
(10,090,723)
(2,600,654)
(6,733,961)
Total other financing sources (uses)
12,792,305
(183,753)
(237,287)
(264,438)
Net changes in fund balances
$ 9,982,804
$ (6,811,685)
$ 2,873,549
$ (584,921)
Debt service as a percentage of
noncapital expenditures
7.48%
0.82%
1.38%
3.18%
The City has elected to show only seven years of data for this schedule.
Source: City Finance Department
-98-
Fiscal Year Ended June 30,
2007
2008
2009
$ 9,876,760
$ 10,165,881 $
9,119,375
I. 541,382
543,561
550,822
11,169,052
9,896,948
12,081,466
' 1,002,210
1,111,655
1,460,828
546,902
637,484
601,533
4,247,626
3,121,476
1,445,324
1,716,194
1,629,257
938,053
767,457
826,177
1,018,956
29,867,583
27,932,439
27,216,357
4,402,235
3,987,656
5,071,860
4,880,290
4,933,958
5,407,476
5,114,274
4,926,418
5,607,870
3,475,549
3,714,762
3,673,282
2,292,757
2,246,496
1,945,951
5,344,935
4,271,890
5,508,167
240,000
255,000
265,000
493,840
411,583
187,212
26,243,880
24,747,763
27,666,818
3,623,703
3,184,676
(450,461)
6,030,764
7,266,149
6,653,637
(6,354,106)
(7,608,749)
(7,064,237)
(323,342)
(342,600)
(410,600)
i
j $ 3,300,361
f
$ 2,842,076 $
(861,061)
2.91%
2.89%
1.77%
i
i
-99-
TRIS PAGE LEFT BLAND. INTENTIONALLY
-100-
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
' ��'"x
S
hL
R.
�+7 LL's
t'y_
�
Net Assessed Value
I
Total
Ended
�nf
�Sk 7
$8,000,000,000
'mss
i�n7i
Net
Tax
Direct
June 30,
Secured
Unsecured
Nommitary *
Taxable Values
Exemptions
Rate
2000
$ 3,836,874,815
$ 63,750,454
$ 125,921
$ 3,900,751,190
$ 36,494,583
0.05294%
2001
4,058,203,577
67,345,947
116,405
4,125,665,929
40,088,648
0.05294%
2002
4,286,132,334
71,531,889
127,441
4,357,791,664
41,869,703
0.05294%
2003
4,618,700,097
69,981,865
122,697
4,688,804,659
44,188,829
0.05294%
2004
5,003,437,689
77,407,924
140,122
5,080,985,735
47,621,182
0.05294%
2005
5,370,469,396
76,173,121
174,846
5,446,817,363
39,831,091
0.05294%
2006
5,791,564,163
83,223,023
163,090
5,874,950,276
51,408,286
0.05294%
2007
6,331,041,269
90,751,985
134,088
6,421,927,342
28,682,577
0.05294%
2008
6,784,318,579
109,704,881
-
6,894,023,460
39,859,238
0.05294%
2009
7,102,450,158
99,170,064
-
7,201,620,222
48,909,164
0.05294%
tj a R'
Source: Los Angeles County Auditor/Controller, Hdl Coren &Cone
-101-
' ��'"x
S
hL
R.
�+7 LL's
t'y_
�
Net Assessed Value
I
`k
�.5.
�nf
�Sk 7
$8,000,000,000
'mss
i�n7i
$7,000,000,000
$6,000,000,000
MR,
$5,000,000,000
W
o
$4,000,000,000
gg
$3,000,000,000
$2,000,000,000
$1,000,000,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Fiscal Year
tj a R'
Source: Los Angeles County Auditor/Controller, Hdl Coren &Cone
-101-
' ��'"x
S
hL
R.
�+7 LL's
t'y_
�
I
`k
�.5.
�nf
�Sk 7
'mss
i�n7i
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 Nommitary 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.
City of Diamond Bar
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Assessed Value)
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00%
is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount,
property owners are charged taxes as a percentage of assessed property values for the payment of any voter
approved bonds for the Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar
depending on which school district the property is located in.
Source: Hdl C;oren & C;one
-102-
1999/00
2000/01
2001/02
2002/03
City Direct Rates:
City basic rate
0.05294
0.05294
0.05294
0.05294
Overlapping Rates:
Children's Institutional Tuition Fund
0.00271
0.00271
0.00271
0.00271
Consolidated Fire Protection
0.16936
0.16936
0.16936
0.16936
County Lighting Maintenance
0.02016
0.02016
0.02016
0.02016
County Sanitation Dist 21
0.01221
0.01221
0.01221
0.01221
County school service - Walnut Valley
0.00894
0.00894
0.00894
0.00894
Development Ctr Handicapped Minor
0.00083
0.00083
0.00083
0.00083
Educational Augmentation Fund
0.21072
0.21072
0.21072
0.21072
La County Library
0.02237
0.02237
0.02237
0.02237
La County Capital Outlay
0.00011
0.00011
0.00011
0.00011
La County Fire
0.00616
0.00616
0.00616
0.00616
La County Flood Control
0.01094
0.01094
0.01094
0.01094
La County General
0.24908
0.24908
0.24908
0.24908
Mt San Antonio Children's Center
0.00028
0.00028
0.00028
0.00028
Mt San Antonio Community College
0.02926
0.02926
0.02926
0.02926
Southeast Mosquito Abatement
0.00035
0.00035
0.00035
0.00035
Three Valley Municipal Water
0.00409
0.00409
0.00409
0.00409
Walnut Valley Unified School Dist
0.19057
0.19057
0.19057
0.19057
Walnut Valley Water Dist
0.00892
0.00892
0.00892
0.00892
Total Prop. 13 Rate
T.FW
Detention Facilities 1987 Debt
0.00142
0.00131
0.00113
0.00103
La County Flood Control Storm Dr. Ds. #4
0.00097
0.00092
0.00066
0.00062
Flood Control Ref. Bonds 1993 Ds
0.00079
0.00064
0.00041
0.00026
Mt San Antonio Ccd Ds 2001 S-A
0.00000
0.00000
0.00000
0.01946
Mt San Antonio Ccd 2001 Series 2004B
0.00000
0.00000
0.00000
0.00000
Mt S Antonio Ccd Ds 2005 Refunding Bond
0.00000
0.00000
0.00000
0.00000
Mt S Antonio Ccd 2001, Series C 2006
0.00000
0.00000
0.00000
0.00000
Mt Sacc Ds 2001, 2008 Series D
0.00000
0.00000
0.00000
0.00000
Pomona Unified Ds Refunding Series 1997
0.06097
0.06294
0.05989
0.05712
Pomona Unified Ds 1991 Series G
0.01150
0.01129
0.00000
0.00000
Pomona Unified Sd Ds 1998 Series A
0.01106
0.00000
0.00000
0.00000
Pomona Unified Sd Ds 1998 Series B
0.02154
0.00000
0.00000
0.00000
Pomona Unified Sd Ds 1998 Series C
0.00000
0.03846
0.00000
0.00000
Pomona Usd Refunding 2000 Series A
0.00000
0.02224
0.02337
0.02299
Pomona Unified Sd Ds 1998 Series D
0.00000
0.00000
0.02070
0.00531
Pomona Usd Refunding 2001 Series A
0.00000
0.00000
0.01806
0.02699
Pomona Unified Sd Ds 2002 Series A
0.00000
0.00000
0.00000
0.01100
Pomona Unified Sd Ds 2002 Series B
0.00000
0.00000
0.00000
0.00000
Pomona Unified Sd Ds 2002 Series C
0.00000
0.00000
0.00000
0.00000
Pomona Unified Sd Ds 2002 Series D
0.00000
0.00000
0.00000
0.00000
Pomona Unified Sd Ds 2002 Series E
0.00000
0.00000
0.00000
0.00000
Pomona Unified Sd Ds 2007 Ref Bds
0.00000
0.00000
0.00000
0.00000
Rowland Heights Usd Ds 2000 Series A
0.00000
0.03734
0.03636
0.03618
Rowland Heights Usd Ds 2000 Series B
0.00000
0.00000
0.00000
0.00000
Rowland Heights Unified Ds 2005 Ref. Bond
0.00000
0.00000
0.00000
0.00000
Rowland Usd Ds 2006 Series A
0.00000
0.00000
0.00000
0.00000
Walnut Valley Ref. Ds Series 97 A
0.07849
0.07715
0.07165
0.07018
Walnut Valley Usd Ds 2000 Series A
0.00000
0.01125
0.01001
0.00881
Walnut Valley Usd Ds 2000 Series B
0.00000
0.00000
0.00997
0.00888
Walnut Valley Usd Ds 2000 Series C
0.00000
0.00000
0.00000
0.01299
Walnut Valley Usd Ds 2000 Series D
0.00000
0.00000
0.00000
0.00000
Walnut Valley Usd Ds 2000 Series E
0.00000
0.00000
0.00000
0.00000
Walnut Valley Usd Ds 2005 Ref. Bond
0.00000
0.00000
0.00000
0.00000
Walnut Valey Usd Ds 2007 Series A (Measure S)
0.00000
0.00000
0.00000
0.00000
Walnut Valley Usd Ds 2007 Series A (Measure Y)
0.00000
0.00000
0.00000
0.00000
Metropolitan Water District
0.00890
0.00880
0.00770
0.00670
Total Voter Approved Rate
--TTr -
-� � --
TW
Total Tax Rate
1.1956
1.2723
1.2599
1.2885
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00%
is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount,
property owners are charged taxes as a percentage of assessed property values for the payment of any voter
approved bonds for the Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar
depending on which school district the property is located in.
Source: Hdl C;oren & C;one
-102-
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
0.05294
0.05294
0.05294
0.05294
0.05294
0.05294
0.00271
0.00271
0.00271
0.00271
0.00271
0.00271
0.16936
0.16936
0.16936
0.16936
0.16936
0.16936
0.02016
0.02016
0.02016
0.02016
0.02016
0.02016
0.01221
0.01221
0.01221
0.01221
0.01221
0.01221
0.00894
0.00894
0.00894
0.00894
0.00894
0.00894
0.00083
0.00083
0.00083
0.00083
0.00083
0.00083
0.21072
0.21072
0.21072
0.21072
0.21072
0.21072
0.02237
0.02237
0.02237
0.02237
0.02237
0.02237
0.00011
0.00011
0.00011
0.00011
0.00011
0.00011
0.00616
0.00616
0.00616
0.00616
0.00616
0.00616
0.01094
0.01094
0.01094
0.01094
0.01094
0.01094
0.24908
0.24908
0.24908
0.24908
0.24908
0.24908
0.00028
0.00028
0.00028
0.00028
0.00028
0.00028
0.02926
0.02926
0.02926
0.02926
0.02926
0.02926
0.00035
0.00035
0.00035
0.00035
0.00035
0.00035
0.00409
0.00409
0.00409
0.00409
0.00409
0.00409
0.19057
0.19057
0.19057
0.19057
0.19057
0.19057
0.00892
0.00892
0.00892
0.00892
0.00892
0.00892
1.0000
---T.TW�"6Sd6
---QTS► 00
0.00099
0.00092
0.00080
0.00066
0.00000
0.00000
0.00043
0.00021
0.00002
0.00002
0.00000
0.00000
0.00004
0.00003
0.00003
0.00003
0.00000
0.00000
0.01525
0.00332
0.00346
0.00346
0.00200
0.00196
0.00000
0.01141
0.01776
0.00146
0.00503
0.00190
0.00000
0.00000
0.00000
0.01535
0.00781
0.01220
0.00000
0.00000
0.00000
0.00503
0.00266
0.00565
0.00000
0.00000
0.00000
0.00000
0.00000
0.00162
0.05423
0.04860
0.04422
0.04131
0.04116
0.04115
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.01977
0.01806
0.01696
0.01381
0.01450
0.01356
0.00811
0.00746
0.00672
0.00597
0.00128
0.00000
0.02057
0.02063
0.01626
0.01924
0.01301
0.01731
0.00925
0.00766
0.00668
0.00616
0.00593
0.00574
0.01441
0.01233
0.01008
0.00903
0.00887
0.00853
0.00000
0.01436
0.01141
0.00907
0.00896
0.00866
0.00000
0.00000
0.01255
0.01024
0.00867
0.00821
0.00000
0.00000
0.00000
0.00918
0.00697
0.00658
0.00000
0.00000
0.00000
0.00000
0.00444
0.00603
0.01382
0.01479
0.00049
0.00639
0.00611
0.00665
0.02398
0.02406
0.02086
0.01908
0.01860
0.01785
0.00000
0.00000
0.01498
0.01205
0.01147
0.01101
0.00000
0.00000
0.00000
0.03677
0.03325
0.03477
0.06633
0.06378
0.06077
0.05834
0.05642
0.05598
0.00825
0.00771
0.00329
0.00283
0.00281
0.00279
0.00774
0.00739
0.00288
0.00248
0.00251
0.00246
0.00857
0.00869
0.00807
0.00744
0.00691
0.00659
0.00571
0.00760
0.00795
0.00828
0.00875
0.00933
0.00000
0.00000
0.00058
0.00033
0.00035
0.00034
0.00000
0.00000
0.00787
0.00778
0.00688
0.00657
0.00000
0.00000
0.00000
0.00000
0.00000
0.02270
0.00000
0.00000
0.00000
0.00000
0.00000
0.00620
0.006100.00580
0.00520
0.00470
0.00450
0.00430
-�3 '.
_$a$
---6ISS
---U.MT5
---T.
1.2836
1.2848
1.2799
1.3165
1.2899
1.3266
-103-
City of Diamond Bar
Top 10 Property Taxpayers
Current Fiscal Year and Nine Fiscal Years Ago
_ 2008-09
Current Taxpayers Assessed Valuation
Percentage of Total
Net Assessed Valuation
DB Gateway Corporate, Inc.
$ 48,500,000
0.673%
Behringer Harvard Western Portfolio
40,731,660
0.566%
CRP -2 Holdings CC
38,760,000
0.538%
VIF 11 Hampton Apartments at Diamond Bar
36,227,086
0.503%
Target Corporation
28,080,832
0.390%
Muller Rock 2 Gateway
24,376,264
0.338%
Gateway Corporate Center
19,635,000
0.273%
Danari Diamond Bar LLC
19,159,041
0.266%
Country Hills Holdings LLC
18,695,169
0.260%
Millennium Diamond Road Partners LLC
18,358,885
0.255%
$ 292,523,937
4.062%
Taxpayers Nine Years Ago
IRPM Muller Associates LLC
M & H Realty Partners II
Diamond Bar Business Associates
Martin Brattrud Properthes
HR Barros Family Limited Partnership
Shea Homes Limited Partnership
Lakeview Village Corporation
Arden Realty Finance III LLC
Kilroy Ralty Limited Partnership
Diamond Bar Hotel Fund Limited
1999-00
Assessed Valuation
Percentage of Total
Net Assessed Valuation
$ 21,624,000
0.517%
19,006,800
0.455%
15,495,213
0.371%
13,889,845
0.332%
13,668,000
0.327%
11,827,729
0.283%
11,611,777
0.278%
10,648,728
0.255%
8,482,761
0.203%
7,780,677
0.186%
$ 134,035,530
3.207%
Source: Hdl Coren & Cone, Los Angeles County Assessor 2008/09 combined tax rolls and the SBE Non Unitary Tax Roll
-104-
Fiscal Year Taxes Levied
Ended
for the
June 30
Fiscal Year
2000
$ 2,049,915
2001
2,104,530
2002
2,289,208
2003
2,474,222
2004
2,699,991
2005
2,870,810
2006
3,107,457
2007
3,378,087
2008
3,582,055
2009
3,781,997
City of Diamond Bar
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Collected within the
Collections in
Total Collections
Fiscal Year of Levy
Subsequent
to Date
Amount
% to Levy
Years
Amount
% to Levy
$ 1,993,904
97.27%
$ 91,011
$ 2,084,915
101.71%
2,027,817
96.35%
106,713
2,134,530
101.43%
2,279,310
99.57%
111,911
2,391,221
104.46%
2,604,887
105.28%
89,923
2,694,810
108.92%
2,622,129
97.12%
114,420
2,736,549
101.35%
2,812,366
97.96%
130,450
2,942,816
102.51%
3,041,035
97.86%
478,686
3,519,721
113.27%
3,367,552
99.69%
353,581
3,721,133
110.16%
3,575,656
99.82%
317,552
3,893,208
108.69%
3,726,933
98.54%
240,455
3,967,388
104.90%
Sources: Los Angeles County Auditor/Controller
City Finance Department
-105-
City of Diamond Bar
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
-106-
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year
Lease
Other Total
Total
% of
Debt
Ended
Revenue
Bond and Governmental
Primary
Per Capita
Per
June 30
Bonds (a)
Loans Activities
Government
Income (b)
Capita (b)
2000
$ -
$ $
$ -
0.00%
$
2001
-
- -
-
0.00%
2002
13,755,000
- 13,755,000
13,755,000
0.80%
237
2003
13,755,000
- 13,755,000
13,755,000
0.78%
233
2004
13,755,000
- 13,755,000
13,755,000
0.77%
232
2005
13,655,000
- 13,655,000
13,655,000
0.75%
229
2006
13,520,000
- 13,520,000
13,520,000
0.72%
226
2007
13,280,000
- 13,280,000
13,280,000
0.71%
222
2008
13,025,000
- 13,025,000
13,025,000
0.69%
216
2009
12,760,000
- 12,760,000
12,760,000
0.71%
211 ( .
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
-106-
Direct Debt as of June 30, 2008:
Diamond Bar Lease Revenue Bond
City of Diamond Bar
Direct and Overlapping Debt
June 30, 2009
(unaudited)
Gross Bonded
Debt Balance
$ 12,760,000
% Applicable
To City
i l 111
Net Bonded
Debt
$ 12,760,000
Overlapping Debts as of June 30, 2008*:
Metropolitan Water District Three Valley Area 1112
137,096,151
0.836
1,145,565
Mt San Antonio Community College District 2001 Series A
3,365,000
10.490
352,989
Mt San Antonio Community College District 2004 Series B
11,610,000
10.490
1,217,889
Mt San Antonio Community College District DS 05 Ref Bd
66,810,843
10.490
7,008,458
Mt San Antonio Community College District DS 01, 06 Ser C
79,861,070
10.490
8,377,427
Mt San Antonio DS 2001, 2008 Series D
26,003,609
10.487
2,726,914
Pomona Unified School District Refund Series 1997A
34,950,000
19.316
6,750,790
Pomona Unified School District 2000 Series A
18,070,000
19.316
3,490,323
Pomona Unified SD Refunding 2001 Series A Debt Service
19,050,000
19.316
3,679,615
Pomona Unified School District 2002 Series A Debt Service
8,465,000
19.316
1,635,063
Pomona Unified School District 2002 Series B
13,105,000
19.316
2,531,305
Pomona Unified School District 2002 Series C
13,615,000
19.316
2,629,814
Pomona Unified School District 2002 Series D
13,920,000
19.316
2,688,727
Pomona Unified School District 2002 Series E
47,495,000
19.316
9,173,927
Pomona Unified School District 2007 Ref Bds
9,161,242
19.316
1,769,546
Walnut Valley Unified School District Refund Series 1997 A
29,312,718
58.942
17,277,606
Walnut Valley Unified School District 2000 Series A
445,000
58.942
262,293
Walnut Valley Unified School District 2000 Series B
205,000
58.942
120,832
Walnut Valley Unified School District 2000 Series C
6,940,000
58.942
4,090,599
Walnut Valley Unified School District 2000 Series D
21,518,114
58.942
12,683,283
Walnut Valley Unified School District 2000 Series E
6,001,837
58.942
3,537,624
Walnut Valley Unified School District 2005 Ref Bonds
11,770,000
58.942
6,937,515
Walnut Valley Unified School District 2007 (Measure S)
29,600,000
58.928
17,442,750
Walnut Valley Unified School District 2007 (Measure Y)
7,200,887
58.928
4,243,354
Total Direct and Overlapping Bonded Debt
$ 628,331,471
$
134,534,208
Debt to Assessed Valuation Ratios as of June 30, 2008:
Ratio
Per Capita
2008/09 Net Assessed Valuation: $7,201,620,222
2009 Estimated Total City Population: 60,407
Direct Debt
0.18%
$
211
Overlapping Debt
1.69%
$
2,016
Total Debt
1.87%
$
2,227
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.
1 Sources: Hdl Coren & Cone
t' City Finance Department
-107-
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,
2000
2001
2002
2003
2004
$ 3,900,751,190
$ 4,125,665,929
$ 4,357,791,664
$ 4,688,804,659
11 $ 5,080,985,735
36,494,583
40,088,648
41,869,703
44,188,829
47,621,182 .
3,937,245,773
4,165,754,577
4,399,661,367
4,732,993,488
5,128,606,917
25%
25%
25%
25%
25%
984,311,443 1,041,438,644 1,099,915,342 1,183,248,372 1,282,151,729
15% 15% 15% 15% 15%
147,646,716 156,215,797 164,987,301 177,487,256 192,322, 759
13,755,000 13,755,000 13,755,000
$ 147,646,716 $ 156,215,797 $ 151,232,301 $ 163,732,256 $ 178,567,759
Fiscal Year Ended June 30,
2005 2006 2007 2008 2009
$ 5,446,817,363
$ 5,874,950,276
$ 6,421,927,342
$ 6,894,023,460
$ 7,201,620,222
39,831,091
51,408,286
28,682,577
39,859,238
48,909,164
5,486,648,454
5,926,358,562
6,450,609,919
6,933,882,698
7,250,529,386
25%
25%
25%
25%
25%
1,371,662,114
1,481,589,641
1,612,652,480
1,733,470,675
1,812,632,347
15%
15%
15%
15%
15%
205,749,317
222,238,446
241,897,872
260,020,601
271,894,852
13,755,000
13,520,000
13,280,000
13,025,000
12,760,000
$ 191,994,317
$ 208,718,446
$ 228,617,872
$ 246,995,601
$ 259,134,852
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
-108-
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
Personal
Police Protection
Los Angeles County Sheriff Department
Fire Protection
Los Angeles County Fire Department
Water Services
Income
Service Provider
Walnut Valley Water District
Education
56,287
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)
Sources: State Department of Finance
California LaborMarketlnfo, Data Library
Diamond Bar City, California - Fact Sheet - American FactFinder
State of California - Labor Market Info (http://www.labonnarketinfo.edd.ca.gov)
-109-
Total
Per Capita
Calendar
Personal
Personal
Total
Unemployment
Year
Population
Income
Income
Employment
Rate
2000
56,287
$ 1,435,318,500
$ 25,500
29,700
3.70%
2001
57,066
1,636,938,210
28,685
30,100
3.80%
2002
58,115
1,852,125,050
31,870
29,700
4.90%
2003
58,966
1,779,358,016
30,176
29,900
5.10%
2004
59,399
1,691,802,318
28,482
29,900
4.70%
2005
59,595
1,722,653,070
28,906
30,700
3.60%
2006
59,722
1,737,074,092
29,086
31,400
3.20%
2007
60,207
1,774,420,704
29,472
31,800
3.40%
2008
60,360
1,903,995,840
31,544
31,200
5.30%
2009
60,407
1,974,342,388
32,684
29,800
8.10%
Sources: State Department of Finance
California LaborMarketlnfo, Data Library
Diamond Bar City, California - Fact Sheet - American FactFinder
State of California - Labor Market Info (http://www.labonnarketinfo.edd.ca.gov)
-109-
City of Diamond Bar
Principal Employers
(unaudited)
Current Fiscal Year and Nine Fiscal Years Ago
"Total Employment" as used above represents the total employment of all employers located within City limits.
Source: InfoUSA - Government Division
-110-
2009
2000
Number of
% of Total
Number of
% of Total
Employer
Employees
Employment
Employees
Employment
South Coast Air Quality Management
816
2.74%
725
- 2.40%
All State Insurance Company
600
2.01%
700
2.32%
l
St Paul Travelers
400
1.34%
Target Store - Diamond Bar
220
0.74%
AAA Auto Club of California
200
0.67%
Diamond Bar High School
200
0.67%
185
0.61%
On Assignment Healthcare
200
0.67%
Farmers Insurance
160
0.54%
First Team Real Estate
150
0.50%
J.F. Shea Co. Inc
135
0.45%
Goodrich Hoist & Winch
120
0.40%
QTC Medical Svc Inc
120
0.40%
Southwest Patrol
120
0.40%
60
0.20%
Starside Security & Investigation
120
0.40%
Century 21 Diamond Realty
120
0.40%
70
0.23%
Administaff Inc
100
0.34%
Biosense Webstar Inc
100
0.34%
First Mortgage Corp
100
0.34%
75
0.25% j
H Mart Co Inc
100
0.34%
t
K Mart
100
0.34%
108
0.36%
Acosta Sales & Marketing
450
1.49%
ADP
300
0.99%
Superior National Insurance
140
0.46%
Coldwell Banker
100
0.33%
Dail Egg Ranchers Inc
100
0.33%
Total Employment
29,800
100.00%
30,200
100.00%
"Total Employment" as used above represents the total employment of all employers located within City limits.
Source: InfoUSA - Government Division
-110-
City of Diamond Bar
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
Function
( General government
Community development
j Community services
{ Public works
Total
Function
General government
Community development
Community services
Public works
Total
Fiscal Year Ended June 30,
2000
2001
2002
2003
2004
21
24
24
24
25
6
4
4
4
5
41
38
37
38
45
4
4
4
5
6
72
70
69
71
81
Fiscal Year Ended June 30,
2005
2006
2007
2008
2009
25
22
21
24
25
7
8
8
6
7
74
77
74
69
71
7
7
8
10
10
113
114
111
109
113
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
(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
-112-
City of Diamond Bar
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year Ended June
30,
Function
2000
2001
2002
2003
2004
Police: (1)
Physical arrests
817
764
571
552
481,
Street sweeping parking citations
(a)
2,996
7,995
6,662
l
6,710
Fire: (2)
Number of emergency calls
(a)
2,647
2,666
2,741
2,755
Inspections
(a)
(a)
(a)
(a)
1,206
Public works: (3)
J
Street resurfacing (miles)
23.0
24.6
19.7
18.5
5.0 t
Parks and recreation: (4)
Number of recreation classes
1,084
1,062
947
915
1,022 l
Number of facility rentals
785
785
785
1,021
1,736
Fiscal Year Ended June 30,
l
Function
2005
2006
2007
2008
2009
Police: (1)
Physical arrests
520
558
582
543
591
Street sweeping parking citations
6,250
5,790
5,684
5,200
5,103
l
Fire: (2)
Number of emergency calls
2,615
2,592
2,612
2,595
2,561
Inspections
1,159
837
1,114
1,085
1,100
Public works: (3)
Street resurfacing (miles)
18.6
16.8
19.6
18.5
13.8 i
Parks and recreation: (4)
Number of recreation classes
1,102
1,376
1,558
1,569
1,315 G
Number of facility rentals
4,123
4,305
4,555
4,103
4,299
(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
-112-
Function
City of Diamond Bar
Capital Asset Statistics by Function
Last Seven Fiscal Years
Fiscal Year Ended June 30,
2003 2004 2005 2006 2007 2008 2009
Public safety:
Police (1):
Station
1
1
1
1
1
1
1
Patrol units (all shifts combined)
20
20
20
19
19
18
18
Fire (2):
Stations
3
3
3
3
3
3
3
Public works:
Highways and streets (3):
Streets (miles)
128
128
128
128
128
128
128
Streetlights
(a)
(a)
(a)
(a)
233
233
233
Trak signals
(a)
(a)
(a)
(a)
74
74
74
Parks and recreation:
Culture and recreation (4):
Parks acreage (developed)
62.7
62.7
62.7
62.7
62.7
62.7
62.7
Parks acreage (undeveloped)
439.0
439.0
439.0
439.0
439.0
439.0
439.4
Parks
11
11
11
11
11
11
12
Public tennis courts
8
8
8
8
8
8
8
Communitv centers
3
3
3
3
3
3
3
Golf Course:(5)
County golf courses 1 1 1 1 1
Sewer (3):
Sanitary sewers (miles) (a) (a) (a) (a) 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.
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Department, Division VIII Office
(3) City Public Works Department
(4) City Community Services Department
(5) LA County Golf Course
-113-
157 157