HomeMy WebLinkAboutCAFR - FY 1995-96CITY OF DIAMOND BAR
Diamond Bar, California
Comprehensive Annual Financial Report
Year ended June 30, 1996
Prepared by
FINANCE DEPARTMENT
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6
CITY OF DIAMOND BAR
Comprehensive Annual Financial Report
Year ended June 30, 1996
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION:
Letter of Transmittal i
Officials of the City of Diamond Bar xi
Organization Chart xii
Certificate of Award for Outstanding Financial Reporting (CSMFO) xiii
Certificate of Achievement for Excellence in Financial Reporting (GFOA) xiv
FINANCIAL SECTION:
Independent Auditors' Report I
General Purpose Financial Statements:
® Combined Balance Sheet - All Fund Types and Account Groups AA 2
® Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types BB 5
® Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual - All Governmental
Fund Types cc 6
® Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - Proprietary Fund Type DD 8
® Combined Statement of Cash Flows - Proprietary Fund Type EE 9
® Notes to the Financial Statements 11
CITY OF DIAMOND BAR
Comprehensive Annual Financial Report
(Continued)
TABLE OF CONTENTS, (CONTINUED)
Supplemental Data:
General Fund:
® Comparative Balance Sheets
® Comparative Statement of Revenues, Expenditures and
Changes in Fund Balances
® Revenue Detail - Budget and Actual
® Expenditure Detail - Budget and Actual
Special Revenue Funds:
® Combining Balance, Sheet
® Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
State Gas Tax Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Proposition A Transit Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Proposition C Transit Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Exhibit Page
A-1 32
A-2 33
A-3 34
A-4 35
B-1 38
B-2 40
B-3 42
B-4 43
B-5 44
CITY OF DIAMOND BAR
Comprehensive Annual Financial Report
(Continued)
TABLE OF CONTENTS, (CONTINUED)
® Integrated Waste Management Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Air Quality Improvement fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Park Fees Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Proposition A Safe Parks Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Community Development Block Grant Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Landscape Maintenance Districts Funds:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Bicycle and Pedestrian Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Exhibit
Page
B-6
45
B-7
46
B-8
47
B-9
48
B-10
49
B-11
50
B-12
51
CITY OF DIAMOND BAR
Comprehensive Annual Financial Report
(Continued)
TABLE OF CONTENTS, (CONTINUED)
Capital Projects Funds:
® Combining Balance Sheet
® Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
® Grand Avenue Construction Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Capital Improvement Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
® Redevelopment Agency Fund:
Statement of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual
Agency Fund:
Statement of Changes in Assets and Liabilities
General Fixed Assets Account Group:
® Comparative Schedule of General Fixed Assets - by Source
® Schedule of General Fixed Assets - by Function and Activity
• Schedule of Changes in General Fixed Assets -
by Function and Activity
Exhibit Page
C-1 54
C-2 55
C-3 56
C-4
57
C-5
58
D-1
60
E-1
62
E-2
63
E-3
64
CITY OF DIAMOND BAR
Comprehensive Annual Financial Report
(Continued)
TABLE OF CONTENTS, (CONTINUED)
Table No.
Page
STATISTICAL SECTION:
General Governmental Expenditures by Function
1
65
General Governmental Revenues by Source
2
66
Secured Property Tax Levies and Collections
3
67
Assessed Value of Secured and Unsecured Property
4
68
Property Tax Rates - All Direct and Overlapping Governments
5
69
Principal Taxpayers
6
70
Computation of Legal Debt Margin
7
71
Computation of Direct and Overlapping Debt
8
72
Schedule of Insurance in Force
9
73
Demographic and Miscellaneous Statistical Information
10
74
Residential and Commercial Construction
11
75
Ratio - Unreserved General Fund Balance to Annual General
Fund Expenditures
12
76
Schedule of Credits
13
77
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Eileen R. Ansari
Mayor
Robert S. Huff
Mayor Pro Tem
Clair W. Harmony
Council Member
Carol Herrera
Council Member
Gary H. Werner
Council Member
Recycled paper
December 2, 1996
21660 E. Copley Drive, Suite 100 • Diamond Bar, CA 91765-4177
(909) 860-2489 - Fax (909) 861-3117
Internet: http://www.ci.diamond-bar.ca.us
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, 1996. Responsibility for both
the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the City. We believe the data
presented is accurate in all material respects; that it is presented in a manner
designed to fairly set forth the financial position and results of operations of the
City as measured by the financial activity of its various funds and account groups;
and that all disclosures necessary to enable the reader to gain a full understanding
of the City's financial affairs have been included.
The Comprehensive Annual Financial Report (CAFR) is presented in three
sections; introductory, financial and statistical. The introductory section includes
this transmittal letter, the City's organizational chart and a list of principal officials.
The financial section includes general purpose financial statements and schedules,
the independent auditor's report, and the notes to the financial statements. The
statistical section includes selected financial and demographic information on a
multi-year basis.
In addition to the financial audit, the City is legally required to also conduct an
annual single audit in conformity with the provisions of the Single Audit Act of
1984 and the US Office of Management and Budget Circular A-128, Audits of
State and Local Governments. Information related to this single audit, including
the schedule of federal financial assistance, findings and recommendations, and
auditor's reports on the internal control structure and compliance with applicable
laws and regulations, are not included with this report and are issued as a separate
document.
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, 1995. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local
financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report, whose
contents conform to program standards. Such 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 received the Certificate of Achievement for the first time for the report
issued for the fiscal year ended June 30, 1995. We believe our current report continues
to conform to the Certificate of Achievement program requirements, and we are
submitting it to GFOA.
The City of Diamond Bar was also awarded the Certificate of Award for Outstanding
Financial Reporting by the California Society of Municipal Finance Officers for its
comprehensive annual financial report for the fiscal year ended June 30, 1995.
This Comprehensive Annual Financial Report includes all funds and account groups of
the City. The City directly provides a limited range of services and contracts for several
other services. The City's significant reliance on contracted services has the benefit of
reducing expenses to the citizens of the City of Diamond Bar while simultaneously
providing the City with a high degree of flexibility in responding to changing economic
conditions. Contracted services include police protection, building and safety, street
maintenance, recreation services, park maintenance, capital improvement projects,
animal control, attorney services and engineering. Staff provided services include
customer service, community development (which includes planning, building and safety
management, and code enforcement), public works (which includes engineering, capital
projects administration, street maintenance contract management, traffic and
transportation matters, engineering contract management, and subsidized transit ticket
sales), community services (which includes senior services, park maintenance, recreation
contract management and landscape' maintenance), economic development, community
relations, grant administration, financial management and administrative management.
All of these activities are included in this report.
Fire protection is provided by the Los Angeles County Fire District which is independent
of the City. Funds are collected through property tax bills and are disbursed directly to
H
the Los Angeles County Fire District by the Los Angeles County Tax Collector's Office.
Water services for the City are provided by the Walnut Valley Water District. Refuse
collection is provided by private waste collection companies. Additionally, schools are
provided by both the Walnut Valley Unified School District and the Pomona Unified
School District. Accordingly, none of these activities are included in this report.
Located at the junction of the 57 and 60 freeways, the City of Diamond Bar is at the hub
of the Los Angeles basin transportation network. A twenty-five mile radius
encompasses.Pasadena, downtown Los Angeles, Long Beach, Irvine and Riverside.
Diamond Bar is a relatively young residential community of about 56,000, situated
among the meandering hills and valleys of Brea Canyon. Many desired services can be
found in Diamond Bar's shopping and business centers. Recreational opportunities
Within the City include more than 80 acres of park facilities and an 18 hole public golf
course.
During the past few years, the City of Diamond Bar has been affected, as have many
other areas of Southern Californi,a by a general down turn in the economy. During
fisacal year (FY) 94-95, the City's economy saw a slight rebound. The City's economy
has continued to improve. This year the City approved the building of additional
housing tracts which consists of over one hundred and twenty five exclusive and up -scale
single family homes. This, in addition to several new business.commitments, is a signal
that the economy in Diamond Bar is improving and will continue to grow.
As the economy continues to improve, it is anticipated that vacancies which exist in
commercial areas should be significantly reduced through continued business retention
and attraction activities.
To help the City capitalize on the rebounding economy, the City's newly adopted General
Plan requires the creation of an Economic Development Strategic Plan. Implementation
of this plan will concentrate on a variety of methods to enhance the City's revenue base.
MAJOR DM IATIVES
For the Year. In the FY95-96 budget, the City of Diamond Bar identified several major
programs and projects necessary to meet increased service levels and to prepare the City
for the future requirements of its residents. The following is a list of the significant
activities which were accomplished this fiscal year.
The two largest projects completed this year were improvements made to one of the
City's major thoroughfares, Grand Avenue. The projects were planned and implemented
together to save funds and to lessen the impact on traffic circulation. The first project
iii
was the resurfacing of the road from the easterly city limits to the westerly city limits of
Diamond Bar. The second project synchronized traffic signals along Grand Avenue.
Grand Avenue spans several cities and part of the unincorporated area of the County.
This synchronization project was done in a coordinated effort throughout the County to
help to increase traffic flow.
This fiscal year Southern California Edison, in partnership with the City, started a utilities
under -grounding project. This project will improve aesthetics within the City by under -
grounding the remaining above ground utility lines. Another important element of this
project is the addition of one hundred eighteen new street lights on Diamond Bar
Boulevard. This will also have the added benefit of increasing safety within the City.
Transportation and traffic continue to be major sources of concern for the City. The
City has continued its popular transit subsidy and Dial -a -Cab programs. The transit
subsidy program offers a 20% to 50% discount to citizens on transit passes for Foothill
Transit, Metrolink, and the MTA. With each passing month, more and more citizens are
taking advantage of this benefit. The other extremely popular program implemented by
the City is the Dial -a -Cab program which offers senior and handicapped citizens taxicab
transportation at a nominal rate. The success of this program is measured in its 1000%
ridership growth within the last year. Both of these programs have been funded by
Proposition A Transit Funds.
The City has implemented an ongoing traffic signal program, which is designed to place
signals at several warranted locations throughout the community. Traffic signals
designed this year for installation next year include Golden Springs Boulevard at the
intersections of Calbourne, Goldrush and Palomino. Left turn signals were installed at
Brea Canyon Road at Golden Springs and Diamond Bar Boulevard at Mountain Laurel.
This fiscal year, the City implemented an aggressive economic development program.
The mainstay of this program has been the marketing of Diamond Bar. The City has and
will continue to participate in trade shows in an effort to draw attention to the
opportunities which abound. In addition, another marketing tool being used is the City's
Internet World Wide Web site. The web site has a vast amount of useful information
about the City, ranging from a community calendar to a site selection area, which has
pictures, maps and availability of commercial sites within the City. The City has started
to see some results from these endeavors, including the increase in restaurants and the
approval of a new hotel.
In it's continued support of the Diamond Bar branch of the Los Angeles County Public
Library, the City created a library computer project. The City has provided for public
use, a computer network which consists of four state of the art personal computers and
network server. In addition, the City has provided ongoing technical assistance, various
computer programs, and internet access. This program has provided a wonderful
resource to the community which can be used by all, whether it is a student working on a
research paper or someone wanting to look at the City's web page on the internet.
iv
For the Future - The accompanying financial statements reflect an excellent financial
condition. This has been accomplished through a combination of sound leadership and
management; and a conservative financial approach.
Reserves have been built in anticipation of a funding loss which is anticipated to occur in
FY97-98. The City has received State subventions based upon an incorporation
population of 74,115. By law, starting in FY97-98, these subventions will be based on
the actual population which is estimated to be 56,000. The estimated loss in the General
Fund revenue could be as much as $800,000 and the loss in Gas Tax revenue could be as
much as $300,000. While programs to retain, attract and assist businesses in existing
commercial areas are beneficial, full occupancy in those commercial areas are not going
to significantly expand revenue as compared to the projected revenue shortfall.
Comparative revenue expansion, in the form of new retail commercial development is
being seriously considered. It is anticipated that the revenue shortfall will be primarily
closed through revenue expansion policies and not solely through service reduction
policies.
To further increase economic growth opportunities within the City, the City formed a
Community Redevelopment. Agency in April, 1996. The first priority of the Agency was
to evaluate the feasibility of a project area. Studies have been completed, and the
Agency continues it progress toward creating the project area.
Internal Control Structures
Management of the City is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the City are protected from loss,
theft, or misuse and to ensure that adequate accounting data is compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting
principles. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that (1) the cost of a control should not exceed the benefits likely to be
derived; (2) the valuation of costs and benefits requires estimates and judgements by
management.
Budgetary Controls
The City adopts an annual budget prepared on the modified accrual basis for all its
governmental funds. The City Manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department without City Council
approval. Revisions that alter the. total appropriations of any department or fund and
adjustments greater than $10,000 are approved by the City Council. Prior year
appropriations lapse unless they are reappropriated through the formal budget process.
v
Expenditures may not legally exceed appropriations at the fund level.
As demonstrated by the statements and schedules included in the Financial section of this
Report, the City meets its responsibility for sound financial management.
Accounting System
The City's accounting records for general government operations and agency funds are
maintained on a modified accrual basis. Accordingly, revenues are recognized when
measurable and available, and expenditures are recognized when goods and services are
received. Accounting for the City's internal service operations are maintained on the
accrual basis. In addition, the City maintains a General Fixed Assets Account Group to
account for fixed assets acquired by the City which are not a part of the internal service
funds. The City also maintains a General Long Term Debt Account Group to record the
City's long term debt obligations including accumulated employee vacation and sick time.
General Government Functions
The following schedule presents a summary of general fund, special revenue funds, and
capital projects funds, fund revenues for the fiscal year ended June 30, 1996 and the
amount and percentage of increases or decreases in relation to prior year revenues.
INCREASE PERCENT
PERCENT (DECREASE) INCREASE
REVENUES
AMOUNT
OF TOTAL
FROM 1995-96 (DECREASE)
Taxes
$5,236,509
37.26%
$272,302
5.20%
Special Assessments
538,896
3.83%
62,748
11.64%
Licenses, Permits and Fees
1,066,475
7.59%
184,887
17.34%
Intergovernmental
5,735,096
40.81%
94,696
1.65%
Fines and Forfeitures
261,138
1.86%
7,314
2.80%
Charges for Services
301,897
2.15%
91,761
30.39%
Interest
863,855
6.15%
131,162
15.18%
Other Revenue
50,787
0.36%
(5,612)
-11.05%
TOTAL
$14,054,653
100.00%
$839 258
There were increases in several of the tax categories. The major increase occurred in the
collection of Transient Occupancy Tax (TOT). During FY94-95, one of the City's two
hotels defaulted on their TOT. There has been a repayment agreement reached and the
hotel has been faithfully paying the arrearage. The other significant increase was in the
City's sales tax revenues. This increase was due partially to the City's implementation of
-vi-
a sales tax audit program. This program reviews State Board of Equalization records
for misallocations and errors, then initiates changes in the allocation of sales tax which is
due to the City.
Licenses, Permits, and Fees increased as a result of increased activity in the Building and
Safety, Planning and Engineering areas. A one hundred twenty five unit upscale single
family housing tract was approved and as a result building related fees have increased.
In addition, there has been a general improvement in the economy as demonstrated by an
increase in other smaller building projects. Recreation program fee revenues have.
increased by $51,645. This is due to the program expansion and popularity.
Interest revenues rose due to the general increase in the City's cash balances. At the end
of FY94-95, the City's investable cash balances. were $14,960,154 by the end of FY95-
96, the balance had increased to $17,551,600. This is an increase of $2,591,446. This,
in addition to slightly higher investment yields, contributed to this substantial increase in
interest revenue.
Fines and Forfeiture Revenue increased slightly due to continued efforts in the collection
of false alarm fees. Additionally, an increased enforcement of parking regulations and
parking fine collection resulted in an increase in parking fine revenue of $39,647 or
82%.
The increase in the Charges for Services Category is primarily due to the collection of
Quimby fees which were collected for new developments. In addition, as previously
stated, the transit pass sales revenues continue to increase as a result of increased usage
of mass transit by the citizens of Diamond Bar.
The following schedule presents a summary of general funds, special revenue funds, and
capital projects funds expenditures for the.fiscal year ended June 30, 1996 and the
amount and percentage of increases and decreases in relation to prior years expenditures.
INCREASE PERCENT
PERCENT (DECREASE) INCREASE
EXPENDITURES AMOUNT OF TOTAL FROM.1994-95 (DECREASE)
General Government $2,007,753 17.29% $85,301 4.25%
Public Safety
Highways and Streets
Public Works
Community Development
Parks, Recreation, & Culture
Capital Outlay
Debt Service
TOTAL
4,110,104
35.39%
10,589
0.26%
1,048,054.
9.02%
(560,122)
-53.44%
2,371,212
20.42%
(307,050)
-12.95%
312,048
2.69%
(35,662)
-11.43%
1,127,136
9.71%
54,848
4.87%
532,559
4.59%
414,669
77.86%
104,930
0.900/0
(3,850)
-3.67%
$11,613,796
100.00%
$(341,277)
MU
Expenditures for the 1994-95 fiscal year were $11,955,073 as compared with
$11,613,796 for the 1995-96 fiscal year, a decrease of $341,277, or 2.8 percent.
There were both increases and decreases within the various divisions of the General
Government category. This fiscal year the City conducted two municipal elections at a
cost o 83!418. ' The -first election was to elect City Council members. The second was
a special election to ratify the City's General Plan. The implementation of economic
development activities this fiscal year also caused an increase in this category.
During FY94-95, the City rehabilitated Diamond Bar Boulevard at a cost of $1,237,293.
This fiscal year the City's road improvement projects were of a lesser magnitude. The
major improvement which was made was the resurfacing and synchronization of Grand
Avenue.
Fund Balances
The General Fund ended the 1995-96 fiscal year with a fund balance of $9,907,004.
This an increase of $1,531,532 or approximately an 18.3% increase from the balance at
June 30, 1995. Of this, $306,355 is reserved for encumbrances, debt service and special
programs. In addition, there is $181,825 designated for specific projects and programs,
including $106,904 for library service enhancement. This leaves an undesignated fund
balance of $9,418,824.
Agency Fund
The agency fund accounts for assets held by the City as trustee or agent. The City
presently has a deferred compensation fund which is set up to account for contributions
for employee participation in an income deferral program.
Cash Management
The City invests temporarily idle funds in accordance with the Government Code and the
investment policy approved by the City Council. During FY95-96, funds were invested
in the Local. Agency Investment Fund, which is administered by the State Treasurer's
Office. The City manages all of its cash and investments on a pooled basis with the
exception of the Deferred Compensation Funds which are managed by the appointed
fiscal agents. Interest earnings are allocated to the various funds based on their share of
cash and investment balances. The average yield on investments managed by the City
was 5.71%.
viii
Defined Benefit Pension Plan
The City has contracted with the California Public Employees Retirement System
(PERS) to provide retirement, disability, death and survivor benefits for all eligible full
and part-time City employees. The pension benefit obligation was computed as part of
an actuarial valuation performed as of June 30, 1995. Neither an actuarial nor an annual
update as of June 30, 1996 is available at this time. The total over -funded pension
obligation applicable to the City employees was $212,408. The City's contribution to the
system based on actuarially determined requirements was $169,458 for FY95-96.
For the three years ended June 30, 1994, 1995 and 1996, the total contribution to PERS
was 13.34%, 13.31%, and 13.31%, respectively, of the annual covered payroll. The
total contribution paid by the City included employer contributions as well as member
contribution for which the City is contractually obligated to pay on behalf of its
employees.
Debt Administration
j As of June 30, 1996, the City of Diamond Bar had no outstanding general obligation
bonds. In July 1992, the City entered into a land lease purchase agreement with the
Walnut Valley Water District. The term of the lease is four annual payments of
$100,000 plus interest with the option to buy at the end of the lease for $1. During
FY95-96, the fourth and final payment was made. In addition, the. land was purchased
for $1. The total paid was $104,930 plus the $1, from General Fund Reserves.
In fiscal year 1994-95, the City entered into a lease agreement for financing the
acquisition of a telephone system in the amount of $22,356 to be paid in sixty monthly
installments ending in March 2000.
Risk Management
The City of Diamond Bar is a member of the Southern California Joint Powers Insurance
Authority (SCJPIA) for the purpose of pooling its general liability losses and claims with
the approximately 78 other member cities. Each member city retains the first $20,000 of
each claim. Claims above $20,000 are shared by all the member cities up to a maximum
of $10,000,000 per occurrence.
The City has also established a self insurance internal service fund to cover the City's
share of any potential losses not covered by the SCJPIA. The City Council established a
policy of annually transferring $100,000 to the fund to create a self-insurance reserve.
When the reserve reaches $1,000,000, the reserves will be deemed to be sufficient. The
self insurance reserve at June 30, 1996 was $749,610.
ix
MMM MWINTI,
The preparation of this Comprehensive Annual Financial Report on a timely basis was
made possible by the dedicated service of the City's Finance Department staff, and
through the cooperation of the entire City staff. Each staff member has my sincere
appreciation for the contributions made in the, preparation of this Report.
I would also -Re to thank our independent auditor, Conrad & Associates, 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,
Terrence L. Belanger
City Manager
X
June 30, 1996
CITY COUNCIL
Eileen R. Ansari, Mayor
Robert S. Huff, Mayor Pro Tern
Clair W. Harmony, Councilmember
Carol Herrera, Councilmember
Gary H. Werner, Council Member
I CITY OFFICIALS
Terrence L. Belanger, City Manager
Frank M. Usher, Assistant City Manager
Michael Jenkins, City Attorney
. Lynda Burgess, City Clerk
James DeStefano, Community Development Director
Bob Rose, Community Services Director
George A. Wentz, PublicWorks Director/City Engineer
David G. Liu, Deputy Director of Public Works
Linda G. Magnuson, Accounting Manager
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City of Diamond Bar,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1995
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
�E Ofiej� �'�
ti IM STA
AN
STN Preside
SEAL'
Executive Director
XIV
, CON R! D CERTIFIED PUBLIC ACCOUNTANTS
I 100 MAIN STREET, ��SOCI ES, L.L..P IRVINE, CALIFORNIA 92SUIT6
1114
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714) 474-2020
Honorable Mayor and City Council
City of Diamond Bar
Diamond Bar, California
Independent Auditors' Report
We have audited the accompanying general purpose financial statements of the City of Diamond
Bar, California as of and for the year ended June 30, 1996, as listed in the table of contents.
These general purpose financial statements are the responsibility of the management of the City
of Diamond Bar, California. Our responsibility is to express an opinion on these general purpose
financial statements based on our audit.
We conducted our audit in ' accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States; and the
provisions of Office of Management and Budget Circular A-128, "Audits of State and Local
Governments." Those standards and OMB Circular A-128 require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, ,evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the aforementioned general purpose financial statements referred to above present
fairly, in all material respects, the financial position of the City of Diamond Bar, California as of
June 30, 1996, and the results of its operations for the year then ended in conformity with
generally accepted accounting principles.
As discussed in note 2 of the notes to the financial statements, the City has changed its method of
accounting for taxpayer -assessed tax revenues in Governmental Funds to comply with
Governmental Accounting Standards Board Statement No. 22.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund financial statements listed in
the table of contents are presented for purposes of additional analysis and are not a required part
of the general purpose financial statements of the City of Diamond Bar, California. Such
information has been subjected to the auditing procedures applied in the audit of the general
purpose financial statements, and in our opinion, is fairly stated in all material respects in relation
to the general purpose financial statements taken as a whole. The scope of our audit did not
include the supplemental statistical schedules listed in the table of contents and we do not
express an opinion on them.
In accordance with Government Auditing Standards issued by the Comptroller General of the
United States, we have also issued a report dated August 30, 1996 on our consideration of the
City's internal control structure and a report dated August 30, 1996 on its compliance with laws
and regulations.
��av►�a� � �TS'SB.c�ca�s � L . L ./�.
August 30, 1996
CITY OF DIAMOND BAR
Combined Balance Sheet - All Fund Types and Account Groups
June 30, 1996
Proprietary
Governmental Fund Types
Fund Type (.
Special
Capital
Internal
General
Revenue
Pro'ects
Service
Assets and other debits
Assets:
Cash and investments (note 3)
$10,256,977
6,323,071
.392,010
579,717
Accounts receivable
66,536
18,154
Interest receivable
232,688
-
Due from other funds (note 12)
102,055
-
24,111
-
Due from other governments
677,620
410,628
-
_ 1.
Prepaid expenses
-
-
-
169,893
Advances to other funds (note 7)
48,027
-
_
_
Fixed assets (note 4)
-
Other debits:
Amount to be provided for
retirement of general long-term
debt
Total assets
$11,383,903
6,751,853
416,121
749,610
Liabilities, equity and other credits
Liabilities:
Accounts payable
$ 1,055,367
118,212
98,422
- l
Accrued expenses
72,832
3,037
227
-
Retentions payable
-
-
18,318
-
Deferred revenue
15,253
-
_
_
Due to other funds (note 12)
28,719
97,447
-
-
Deposits
304,728
-
Due to other governments
-
16,308
Compensated absences payable (note 5) -
-
Lease payable (notes 5 and 6)
-
Advances from other funds (note 7) -
Deferred compensation payable
l
(note 10)
-
-
_
Total liabilities
1,476,899
235,004
116,967
-
Equity and other credits:
Investment in general fixed assets
-
-
_
_
Retained earnings (note 9):
Reserved
-
-
-
169,893
Unreserved
-
-
579,717
Fund balances (note 8):
Reserved
306,355
78,554
94,999
-
Unreserved - designated
181,825
6,445,179
204,155
-
Unreserved - undesignated
9,418,824
(6.884)
Total equity and other credits
9,907,004
6,516,849
299,154
749,610
Total liabilities, equity
and other credits
$11,383,903
6,751,853
416,121
749,610
See accompanying no es -To the financial statements.
2
MEW
FiduciM Fund Type
Account Groups
1,658,658
Totals
76,096
General General
(Memorandum Only)
Agency
Fixed Assets Long -Term Debt
1996
1995
381,518
17,933,293
15,285,285
-
304,728
84,690
185,129
16,308
-
232,688
217,738
103,922
- 18,023
126,166
741,910
- 48,027
48,027
1,088,248
1,600,611
381,518
325,131
169,893
169,849
3,551,920
- 4,160,497 -
48,027.
-
-
4,160,497
4,160,497
4,084,540
-
- 165,519
165,519
225,687
381,518
4,160,497 165,519
24,0 9,021
22.510.749
1,272,001
1,658,658
76,096
66,530
18,318
169,788
15,253
112,723
126,166
741,910
304,728
251,493
16,308
-
- 99,469
99,469
103,922
- 18,023
18,023
121,765
- 48,027
48,027
-
381,518 - -
381,518
325,131
381,518 - 165,519
2,375,907
3,551,920
- 4,160,497 -
4,160,497
4,084,540
-
169,893
169,849
579,717
479,465
479,908
1,140,011
6,831,159
5,373,510
9,411,940
7,711,454
4,160,497
21,633,114
18,958,829
381.,.518 4,160,,497 165,519
24,009,021
22,510,749
-
3
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EXHIBIT BB
CITY OF DIAMOND
BAR
Combined Statement of Revenues, Expenditures
and Changes
in Fund Balances -
All Governmental Fund
Types
Year ended June 30, 1996
Totals
Special
Capital
(Memorandum Only)
General
Revenue
- Projects
1996
1995
Revenues:
Taxes
$5,236,509
-5,236,509
4,964,207
Special Assessments
-
538,896
-
538,896
476,148
Licenses, permits and fees
919,942
64,475
82,058
1,066,475
881,588
Intergovernmental Intergovernmental
2,759,635
2,975,461
-
5,735,096
5,640,400
Fines and forfeits
261,138
-261,138
253,824
Charges for services
-
301,897
-
301,897
210,136
Interest
507,613
348,587
7,655
863,855
732,693
Other revenues
- 46,556
4,231
-
50,787
56,399
Total revenues
9,731,393
4,233,547
89,713
14,054,653
13,215,395
Expenditures:
Current:
General government
2,007,753
2,007,753
1,922,452
Public safety
4,110,104
--
4,110,104
4,099,515
Highway and streets
-
33,855
1,014,199
-1,048,054
1,608,178
Public works
1,136,885
896,255
338,072
2,371,212
2,678,261
Community development
-
153,488
158,560
312,048
347,710
Parks, recreation and
culture
1,102,053
25,083
-
1,127,136
1,072,288
Capital outlay
89,637
2,058
440,864
532,559
117,889
Debt service:
Principal
-
-
100,000
100,000
100,000
Interest
-
-
4,930
4,930
84780
Total expenditures
8,446,432
1,110,739
2,056,625
11,613,796
11,955,073
Excess (deficiency) of
revenues over (under)
expenditures
1,284,961
3,122,8081,966.912)
2,440,857
1,260,322
Other financing sources (uses):
Operating transfers in
633,450
-
1,687,526
2,320,976
3,093,666
Operating transfers out
(386,879)
(2,203,946)
-(2,590,825)
(3,353,136)
Proceeds of advances
48,027
48,027
-
Proceeds of capital lease
-
-
-
22,356
Total other financing
sources (uses)
246,571
2.203.946)
1,735,553
(221,822)
(237,114)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing uses
1,531,532
918,862
(231,359)
2,219,035
1,023,208
Fund balances at beginning of
year, as restated
8,375,472
5,597,987
530,513
14,503,972
13,201,767
Fund balances at end of year
j9 90 004
6,516849
299,154
16,723,007
14,224,975
See accompanying notes to the financial statements.
5
CITY OF DIAMOND BAR
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and Actual
All Governmental Fund Types
. Year ended June 30 1996
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses 24,753 1,531,532 1,506,779
Fund balances at beginning of year,
as restated 8,375,472 8,375,472
Fund balances, at end of year $8,400..,225 9,907.004 1,506779
See accompanying notes to the financial statements.
6
General
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Taxes
$ 5,060,000
5,236,509
176,509
Special Assessments
Licenses, permits and fees
974,800
919,942
(54,858)
Intergovernmental
2,485,000
2,759,635
274,635
Fines and forfeits
256,500
261,138
4,638
Charges for services
--
-
Interest
406,500
507,613
101,113
Other revenues
34,200
46,556
—_ 12,356
Total revenues
9,217,000
9,731,393
514,393
Expenditures:
Current:
General government
2,432,030
2,007,753
424,277
Public safety
4,182,590
4,110,104
72,486
Highways and streets
-
--
Public works
1,422,741
1,136,885
285,856
Community development
--
-
Parks, recreation and culture
1,243,954
1,102,053
141,901
Capital outlay
123,312
89,637
33,675
Debt service:
Principal
-
-
-
Interest
Total expenditures
9,404,627
8,446,432
958,195
Excess (deficiency) of
revenues over (under)
expenditures.
(187,627
1,284,961
1,472,588
Other financig sources (uses):
Operating transfers in
653,380
633,450
(19,930)
Operating transfers out
(441,000)
(386,879)
54,121
Proceeds of advances
Total other financing sources (uses)
212,380
246,571
34,191
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses 24,753 1,531,532 1,506,779
Fund balances at beginning of year,
as restated 8,375,472 8,375,472
Fund balances, at end of year $8,400..,225 9,907.004 1,506779
See accompanying notes to the financial statements.
6
Special
Revenue
(33,855)
2,982,592
1,014,199
Variance
1,038,909
896,255
Favorable
Budget
Actual
(Unfavorable)
547,632
538,896
(8,736)
250,000
64,475
(185,525)
5,160,744
2,975,461
(2,185,283)
323;000
301,897
(21,103)
261,800
348,587
86,787
-
4,231
4,231
6,543,176
4,233,547
2( 3_, 09,629)
EXHIBIT CC
Capital
Projects
(33,855)
2,982,592
1,014,199
_
Variance
1,038,909
896,255
Favorable
Budget
Actual
(Unfavorable)
40,000
82,058
42,058
63,000
-
(63,000)
-
7,655
7,655
103,000
89,713
(13,287)
(873,940) 918,862 1,792,802 (398,800) (231,359) 167,441
5,597,987
33,855
(33,855)
2,982,592
1,014,199
1,968,393
1,038,909
896,255
142,654
949,400
338,072
611,328
159,100
153,488
5,612
407,595
158,560
249,035
72,000
25,083
46,917
-
-
-
8,300
2,058
6,242
3,277,095
440,864
2,836,231
-
-
-
100,000
100,000
-
-
-
-
4,930
4,930
-
1,278,309
1,110,739
167,570
7,721,612
2,056,625
5,664,987
5,264,867
3,122,808
(2 14__, 2,059)
(7 61, 8.612)1(
,966,91
5,651,700
7,110,662
1,687,526
(5,423,136)
(6,138,807)
(2,203,946)
3,934,861
-
-
_
-
-
-
109,150
48,027
_ (61.123)
(6,138,807)
2 20( 3,946)
3,934,861
7,219,812
1,735,553
(5,484,259)
(873,940) 918,862 1,792,802 (398,800) (231,359) 167,441
5,597,987
5,597,987
-
530,513
530,513
-
1 4_,724,047
6,516,849
1,792,802
131,713
299,154
167,441
CITY OF DIAMOND BAR EXHIBIT DD
Combined Statement of Revenues, Expenses, and Changes in Retained Earnings
Proprietary Fund Type
Year ended -June 30; 1996
Operating expenses:
Insurance premiums
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Interest revenue
Total non-operating revenues (expenses)
Income (loss) before operating transfers
Transfer from other funds:
General fund
Total operating transfers
Net income
Retained earnings at beginning of year
Retained earnings at end of year
Internal Service
19951996
1!25.287 208..467
195,287 208.467
112L2 287 (20.46J7
—25,734
25,734
.11�553
269.849
–269.849
100,296
649.314
L_49 610
1 _
See accompanying notes to the financial statements
22.579
22,579
(185.,888)
259.470
259.470
73,582
575,732
649,314
=::_
• •f : R.M.1
Combined Statement of Cash Flows - Proprietary Fund Type
Year ended June 30, 1996
EXHIBIT EE
See accompanying notes to the financial statements.
9
Internal Service
i j
1996
1995
Cash flows from operating activities:
Insurance payments
R12L331)
(214,9001
Net cash provided by (used for) operating activities195
331)
214 900)
Cash flows from noncapital flnancing activities:
Transfer from other fund
269,849
259,470
Net cash provided by noncapital fmancing activities
269,849
259,470
Cash flows from investing activities:
Interest earned on investments
25,734
22,579
i
Net cash provided by investing activities
25,734
22,579
Net increase (decrease) in cash and cash equivalents
i'
100,252
67,149
Cash and cash equivalents at beginning of year
479,465
412,316
Cash and cash equivalents at end of year
Lf79 717
479,465
Reconciliation of net operating income to net
cash provided by (used for) operating activities:
Operating income (loss)
$(195,287)
(208,467)
Adjustments to reconcile operating income to net
cash provided by (used for) operating activities:
(Increase) decrease in prepaid insurance
(44)
-
(Decrease) increase in accounts payable
-
(6,433)
Net cash provided by (used for) operating activities
195 33 J1
(214,900)
See accompanying notes to the financial statements.
9
(This page intentionally left blank)
CITY OF DIAMOND BAR
Notes to the Financial Statements
Year ended June 30, 1996
1) SummM of Significant Accounting Policies
(a) Description of the Reporting Entity
The City of Diamond Bar was incorporated April 18, 1989 under the general laws
of the State of California. The City operates under the Council - Manager form of
government and provides the following services as authorized by its general laws:
Public Safety (police), Highways and Streets, Park Facilities, Public
Improvements, Community Development (planning, building, zoning) and
.., General Administrative Services.
The accounting policies of the City conform to generally accepted accounting
principles as applicable to governments. As required by generally accepted
accounting principles, these financial statements present the government and its
component units, entities for which the government is considered to be financially
accountable. The City is considered to be financially accountable for an
organization if the City appoints a voting majority of that organization's
governing body and the City is able to impose its will on that organization or
there is a potential for that organization to provide specific financial benefits to or
impose specific financial burdens on the City. The City is also considered to be
financially accountable if an organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without
approval from the City). In certain cases, other organizations are included as
component units if the nature and significance of their relationship with the City
are such that their exclusion would cause the City's financial statements to be
misleading or incomplete.
All of the City's component units are considered to be blended component units.
Blended component units, although legally separate entities, are, in substance,
part of the government's operations and so data from these units are reported with
the interfund data of the primary government. The following organization is
considered to be a component unit of the City:
I
Diamond Bar Redevelopment Agency
The Diamond Bar Redevelopment Agency was established on February 6, 1996
pursuant to the State of California Health and Safety Code Section 33000 entitled
"Community Redevelopment Law". Its purpose is to prepare and carry out plans
for improvements, rehabilitation and redevelopment of blighted areas within the
territorial limits of the City of Diamond Bar. Even though it is legally separate, it
is reported as if it were part of the City because the City Council also serves as the
governing board of the Agency. Upon completion, separate financial statements
of the Agency can be obtained at City Hall.
M
Notes _to_the-Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
(b) Fund Accounting
The basic accounting and reporting entity is a "fund." A fund is defined as an
independent fiscal and accounting entity with a self -balancing set of accounts,
recording resources, related liabilities, obligations, reserves and equities
segregated for the purpose of carrying out specific activities or attaining certain
objectives, in accordance with special regulations, restrictions or limitations.
The accounting records of the City are organized on the basis of funds and
account groups classified for reporting purposes as follows:
GOVERNMENTAL FUNDS
General Fund
The General Fund is the general operating fund of the City. All general tax
revenues and other receipts that are not allocated by law or contractual agreement
to some other fund are accounted for in this fund. Expenditures of this fund
include the general operating expenses and capital improvement costs which are
not paid through other funds.
Special Revenue Funds
The Special Revenue Funds are used to account for proceeds of specific revenue
sources that are restricted by law or administrative action for specific purposes.
Capital Project Funds
Capital Project Funds are used to account for financial resources to be used for the
acquisition, construction or improvements of major capital facilities and
infrastructure.
12
Notes to the Financial Statements
(Continued)
Surnmya of Significant Accounting Policies, (Continued
PROPRIETARY FUNDS
The City applies all applicable GASB pronouncements in accounting and
reporting for its proprietary operations as well as the following pronouncements
issued on or before November 30, 1989, unless these pronouncements conflict
with or contradict GASB pronouncements: Financial Accounting Standards
Board (FASB) Statements and Interpretations, Accounting Principles Board
(APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee
on Accounting Procedures. Proprietary funds include the following fund type:
Internal Service Fund
The Internal Service Fund is used to account for goods and services provided by
one department to other departments on a cost reimbursement basis.
FIDUCIARY FUNDS
Agency Funds
Agency Funds are custodial in nature and account for assets that the City holds for
others in an agency capacity.
ACCOUNT GROUPS
General Fixed Assets Account Group
The General Fixed Assets Account Group is used to account for the costs of fixed
assets acquired to perform general government functions.
Assets purchased are recorded as expenditures in the governmental funds and
capitalized at cost in the general fixed assets account group. Contributed fixed
assets are recorded in general fixed assets at fair market value when received.
Fixed assets acquired under a capital lease are recorded at the net present value of
future lease payments.
Fixed assets consisting of certain improvements other than buildings, including
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and
lighting systems, have not been capitalized. Such assets normally are immovable
and of value only to the City. Therefore, the purpose of stewardship for capital
expenditures is satisfied without recording these assets.
13
Notes to -the Financial Statements
(Continued)
(1) Summm of Significant Accounting Policies (Continued)
No depreciation has been provided on general fixed assets.
General Lona -Term Debt Account Group
The General Long -Term Debt Account Group is used to account for all long-term
debt of the City, except that accounted for in the proprietary funds.
(c) Measurement Focus and Basis of Accounting
Governmental (general, special revenue, and capital projects) fund types are
accounted for on a "spending" measurement focus. Accordingly, only current
assets and current liabilities are included on their balance sheets. The reported
fund balance provides an indication of available, spendable resources. Operating
statements .for governmental fund types report increases (revenues) and decreases
(expenditures) in available spendable resources.
The proprietary (enterprise and internal service) fund types are accounted for on
an "income determination" or "cost of services" measurement focus.
Accordingly, all assets and liabilities are included on the balance sheet, and the
reported fund equity provides an indication of the economic net worth of the fund.
Operating statements for proprietary fund types report increases (revenues) and
decreases (expenses) in total economic net worth.
Agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations.
The modified accrual basis of accounting is followed by the governmental and
agency funds. Under the modified accrual basis of accounting, revenues are
susceptible to accrual when they become both measurable and available.
Available means collectible within the current period or soon enough thereafter to
be used to pay liabilities of the current period. Expenditures, other than interest
on long-term debt, are recorded when a current liability is incurred. Liabilities are
considered current when they are normally expected to be liquidated with
expendable available financial resources. .
Taxes, subventions, entitlements, and taxpayer -assessed tax revenues held at year-
end by an intermediary collecting government are recognized as revenue under the
modified accrual basis of accounting. Reimbursement grant revenues are
recognized when the related expenditures are incurred. Revenues from the use of
money and property are recorded when earned.
14
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
Licenses, permits, fines, forfeitures, charges for services, and miscellaneous
revenues are recorded as governmental fund revenues when received in cash
because they are generally not measurable until actually received.
The accrual basis of accounting is utilized by the proprietary funds. Revenues are
recognized when they are earned and expenses are recorded when the related
liability is incurred. Unbilled service receivables, if material, have been reflected
in.the financial statements.
(d) Budge!M Data
The City adopts an annual budget prepared on the modified accrual basis for all of
its governmental funds. The City Manager or his designee is authorized to
transfer budgeted amounts between the accounts of any department without
Council approval. Revisions that alter the total appropriations of any department
or fund and adjustments greater than $ 10,000 are approved by City Council. Prior
year appropriations lapse unless they are reappropriated through the formal budget
process. Expenditures may not legally exceed appropriations at the fund level.
During the year, there were supplemental budgetary appropriations amounting to
$3,323,115.
(e) Interfund Transfers
Nonrecurring transfers of equity between funds are reported as an adjustment to
beginning fund balance. Operating transfers are reported as other sources and
uses of funds in the statement of revenues, expenditures, and changes in fund
balances for governmental fund types.
(f) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is employed .as an extension of formal
budgetary control in the governmental funds. Encumbrances outstanding at year-
end do not constitute expenditures or liabilities, but are reported as reservations of
fund balance.
15
-Notes -to the Financial -Statements
(Continued)
(11 Summary of Significant Accounting, Policies (Continued)
(g) Investments
Investments are valued at cost. An estimated loss is accrued for an impairment of
investment market value when it is probable that the loss will become realized and
the amount of loss can be reasonably estimated.
(h) Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short-
term, highly liquid investments that are bothreadily convertible to known
amounts of cash or so near their maturity that they present insignificant risk of
changes in value because of changes in interest rates. Cash equivalents also
represent the proprietary funds' share in the cash and investment pool of the City
of Diamond Bar.
(i) Due from Other Governments
The amounts recorded as a receivable due from other governments include sales
taxes, property taxes, and grant revenues, collected or provided by Federal, State,
County, and City Governments and unremitted to the City as of June 30, 1996.
The County of Los Angeles assesses, bills, and collects property taxes for the
City.
0) Employee Leave Benefits
Vacation and sick leave time begin to accumulate as of the first day of
employment to a maximum of 160 hours. Employees who accumulate sick leave
in excess of 160 hours are paid for the excess annually at one half the employee's
current wage rate.
(k) Claims and Judgments
The City records a liability for material litigation, judgments, and claims
(including incurred but not reported losses) when it is probable that an asset has
been impaired or a material liability has been incurred prior to year end and the
probable amount of loss (net of any insurance coverage) can be reasonably
estimated.
16
Notes to the Financial Statements
(Continued)
(11 Summary of Significant Accounting Policies, (Continued)
(1) , Capital Projects
Capital projects expenditures include public domain or infrastructure projects
which are not capitalized as additions to general fixed assets.
(in) Postemployment Benefits
The City does not provide p*ostemployment benefits (other than pension benefits)
for its employees.
(n) Property Taxes
Under California law, property taxes are assessed and collected by the counties up
to 1% of assessed value, plus other increases approved by the voters. The
property taxes go into a pool, and are then allocated to the cities based on complex
formulas. Accordingly, the City of Diamond Bar accrues only those taxes which
are received within 60 days after year end.
The property tax calendar is as follows:
Lien Date:
March I
Levy Date:
July I
Due Date:
First Installment - November I
Second Installment - February I
Delinquent Date:
First Installment - December 11
Second Installment - April 11
Taxes are collected by Los Angeles
County and are remitted to the -City
periodically. Dates and percentages are as follows:
December 10
30% Advance
January 16
Collection No. 1
April 10
10% Advance
May 15
Collection No. 2
July 31
Collection No. 3
OW
11 Notes to the Financial Statements
(Continued)
(11 Summary of Significant Accounting Policies (Continued)
(o) Fixed Assets
Fixed assets are not capitalized in the funds used to acquire or construct them.
Instead, capital acquisition and construction are reflected as expenditures in
governmental funds, and the related assets are 'reported in the general fixed assets
account group. All purchased fixed assets are valued at cost where historical
records are available and at an estimated historical cost where no historical
records exist. Donated fixed assets are valued at their estimated fair market value
on the date received.
The costs of normal maintenance and repairs that do not add to the value of the
asset or materially extend asset lives are not capitalized. Improvements are
capitalized and depreciated over the remaining useful lives of the related fixed
assets, as applicable.
Public domain ("infrastructure") general fixed assets consisting of roads, bridges,
curbs and gutters, streets and sidewalks, drainage. systems and lighting systems
are not capitalized, as these assets are immovable and of value only to the
government. '
Assets in the general fixed assets account group are not depreciated.
(p) Comparative Data
Comparative total data for the prior year have been presented in the.
accompanying financial statements in order to provide an understanding of
changes in the City's financial position and operations. However, comparative
(i.e., presentation of prior year totals by fund type) data have not been presented
in each of the statements since their inclusion would make the statements unduly
complex and difficult to read. Certain minor reclassifications of prior year data
have been made in order to enhance their comparability with current year figures.
(q) Memorandum Only Totals
Columns in the accompanying financial statements captioned "Totals
(Memorandum Only)" are not necessary for a fair presentation of the financial
statements in accordance with generally accepted accounting principles, but are
presented as additional analytical data. Interfund balances and transactions have
not been eliminated and the columns do not present consolidated financial
information.
18
Notes to the Financial Statements
(Continued)
2) Prior Period Adiustment
The accompanying financial statements reflect certain adjustments to the opening fund
balances of the General and Special Revenue Funds due to a change in accounting policy
and the closure of a fund for the year ended June 30, 1996. The effect of these changes
on opening fund balances is as follows:
General Fund Special Revenue Funds
Fund balances at beginning
of year, as previously reported
$8,178,014
5,516,448
Adjustment for change in
accounting policy for
accounting of taxpayer -
assessed taxes in
governmental funds to
comply with GASB No. 22
197,100
81,897
Residual equity transfer
358
(358)
Fund balances at beginning
of year, as restated
$8,375-,472
5-597,987
3). Cash and Investments
Cash and investments held by the City at June 30, 1996 consisted of the following:
Carrviniz Amount
Imprest cash on hand - $ 175
Demand deposits 540,254
State Treasurer's investment pool 17,011,346
Deferred compensation mutual funds 3 81, 518
Total $17,933,293
19
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
(3) Cash and Investments, (Continued)
The City is generally authorized under Section 53601 of the California Government Code
and the City's investment policy to invest in the following types of investments:
Medium term corporate notes
Demand deposits with financial institutions
Passbook savings accounts
Certificates of deposit
U.S. Treasury bills and notes
Bankers' acceptances
Commercial paper
California Local Agency Investment Fund
Repurchase Agreements
Negotiable certificates of deposit
Money market funds
Federal Agency Securities
Deferred compensation investments held in a fiduciary capacity for City employees
include investments legally authorized for the City as well as investments in mutual
funds.
Under the California Government Code, a financial institution is required to secure
deposits made by state or local governmental units by pledging securities held in the form
of an undivided collateral pool. The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public
agencies. California law also allows financial institutions to secure City deposits by
pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits.
Deposits of cities and other state or local governments are classified in three categories to
give an indication of the level of credit risk assumed by the City.
Category 1 - includes deposits that are insured or collateralized with securities held by
the City or its agent in the City's name.
Category 2 - includes deposits collateralized with securities held by the pledging
financial institution's trust department or agent in the City's name. Category 2 also
includes deposits collateralized by an interest in an undivided collateral pool held by an
authorized Agent or Depository and subject to certain regulatory requirements under
State law.
W
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
(3) Cash and Investments, (Continued)
Category 3 - includes deposits collateralized with securities held by the pledging
financial institution, or by its trust department or agent but not in the City's name.
Category 3 also includes any uncollateralized deposits.
Deposits held by the. City as of June 30, 1996 are classified in risk categories as follows:
Form of Deposit
Demand deposits
Total deposits
Category Bank Carrying
1 2 3 Balance Amount
$100,000 460,276 — 560,276
100 000 460,276 - 560,276
540,254
540,254
Investments held by the City as of June 30, 1996 are not classified by custodial risk
because they do not represent a direct investment in securities.
Carrying
Market
Amount
Value
Investments held by City not subject to categorization:
Investment in State Treasurer's Investment Pool $17,011,346
17,138,931
Investment in deferred compensation mutual funds . 3 81,518
381,518 .
Total investments $17,392,864 17,520,449
The management of the State of California Pooled Money Investment Account (generally
referred to as LAIF) has indicated to the City that as of June 30, 1996 the carrying
amount (at amortized cost) of the pool was $26,781,148,920 and the estimated market
value of the pool (including accrued interest) was $26,982,550,842. The City's
proportionate share of the pool's market value (as determined by LAIF) as of June 30,
1996 was $17,138,931. Included in LAIF's investment portfolio are collateralized
mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to
certain state funds, and floating rate securities issued by federal agencies, government-
sponsored enterprises, and corporations.
21
- Notes to the Financial Statements
(Continued)
4) Fixed Assets
A summary of changes in general fixed assets follows:
(5) General Long -Term Debt
Changes in general long-term debt for the year ended June 30, 1996 were as follows:
Balance at Balance at
July 1, 1995 Additions Retirements June 30, 1996
City:
Compensated absences payable $103,922 - 4,453 99,469
Obligations under capital lease 121,765 - 103,742 18,023
Redevelopment Agency:
Advances from other funds 48,027 - 48,027
Total jZ25.687 48.027 108,195 165,519
(6) Obligations Under Capital Lease
Telephone System
The City has entered into a lease agreement as lessee for financing the acquisition of a
telephone system in the amount of $22,356 to be paid in sixty monthly installments
ending in March 2000. The balance to be paid is $21,473 including $3,450 in interest.
22
Balance at
Balance at
July 1, 1995
Additions Retirements
June 30, 1996
Land
$1,961,615
8,284 -
1,969,899
Buildings
859,345
- -
859,345
Improvements other than
buildings
579,301
- -
579,301
Vehicles and equipment
502,635
70,940 8,348
565,227
Furniture and fixtures
181,644
5,081 -
186,725
Total
$4,084,540
84,305 8,348
4,160,497
(5) General Long -Term Debt
Changes in general long-term debt for the year ended June 30, 1996 were as follows:
Balance at Balance at
July 1, 1995 Additions Retirements June 30, 1996
City:
Compensated absences payable $103,922 - 4,453 99,469
Obligations under capital lease 121,765 - 103,742 18,023
Redevelopment Agency:
Advances from other funds 48,027 - 48,027
Total jZ25.687 48.027 108,195 165,519
(6) Obligations Under Capital Lease
Telephone System
The City has entered into a lease agreement as lessee for financing the acquisition of a
telephone system in the amount of $22,356 to be paid in sixty monthly installments
ending in March 2000. The balance to be paid is $21,473 including $3,450 in interest.
22
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
(6) Obligations Under Capital Leas&, (Continued)
This lease agreement qualifies as a capital lease for accounting purposes and, therefore,
has been recorded at the present value of the future minimum lease payments as of the
inception date in the general fixed assets account group. Payments of principal and
interest are made from the General Fund.
The future minimum lease obligations and the net present value of the minimum lease
payments as of June 30, 1996 were as follows:
Year Ending
June 30
1997
$ 5,601
1998
5,601
1999
5,601
2000
4,670
Total minimum lease payments
21,473
Less amount representing interest
—k3,450)
Present value of minimum lease payments
SI8 023
(7) Advances from Other Funds
During the fiscal year ended June 30, 1996, the General Fund advanced $48,027 to the.
Redevelopment Agency Capital Projects Fund for various start up costs. The following
represents a summary of these transactions:
Balances at I Balances at
July 1, 1995 Proceeds RepUments June 30, 1996
Agency expenditures
.incurred by the City 48,.027 48_,027
Repayment of advances is not required until funds become available to the Agency.
Interest accrues on advances at the average daily rate earned on investments in the Local
Agency Investment Fund.
23
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
(8) Reserves and Designations of Fund Balance
The City established "reserves" of fund equity to segregate fund balances which are not
appropriable for expenditure in future periods, or which are legally set aside for specific
future use. Fund "designations" also may be established to indicate tentative plans for
financial resource utilization in future periods.
Fund balances at June 30, 1996 consisted of the following reserves and designations:
Special Capital Total
General Fund Revenue Proiects (Memorandum Only)
Reserved for:
Debt service $ 117,492 - -
Encumbrances 140,836 78,554 94,999
Advances to the Diamond Bar
Redevelopment Agency 48,027
306,355 78,554 94,999
Unreserved:
Designated for:
Specific projects and programs 181,825 6,445,179 204,155
Undesignated 9,418,824 (6,884
9,600,649 6,438,295 204,155
Total fund balance $9,907,004 6,516,849 299,154
(9) Reserves and Designations of Retained Earnings
Reserved for:
Prepaid insurance
Unreserved for:
Undesignated
Total retained earnings
24
117,492
314,389
48,027
479,908
6,831,159
9,411,940
16;243,099
16,723,007
Internal Service
$169,893
579.717
749 610
Notes to the Financial Statements
(Continued)
(10) Deferred Compensation
The City has made available to its employees a deferred compensation plan, created in
accordance with Internal Revenue Code Section 457, whereby employees . authorize the
City to defer a portion of their salary to be deposited in individual investment accounts.
Funds may be withdrawn by participants upon termination of employment or retirement.
The City makes no contribution under the plan. As of June 30, 1996''the deferred
compensation liability included in an Agency Fund was $381,518 carried at market value.
All amounts of compensation deferred under the plan, all property and rights purchased
with those amounts, and all income attributable to those amounts, property, or rights, are
solely the property and rights of the City, subject only to the claims of the City's general
creditors. Because the City handles these funds in a fiduciary. capacity, the Deferred
Compensation Fund is reported as an Agency Fund in the accompanying financial
statements.
0 1) City Employees Retirement Plan (Defined Benefit Pension Plan)
Plan Description
The City of Diamond Bar contributed to the California Public Employees Retirement
System (PERS), an agent multiple -employer defined pension plan that acts as a common
investment and administrative agent for participating public entities within the State of
California. The City's payroll foremployees covered by PERS for the year ended June
30, 1996 was $1,273,644. The total payroll for the year was $1,379,362.
All full-time and part-time benefitted City employees are eligible to participate in PERS.
Part-time hourly non -benefitted employees do not participate in PERS. Benefits vest
after five years of service. City employees who retire at or after age fifty, with five years
of credited service are entitled to an annual retirement benefit, payable monthly for life,
in an amount equal to the average monthly pay rate for the last twelve consecutive
months. PERS also provides death and survivor's benefits. These benefit provisions and
all other requirements are established by State statute and. City ordinance.
Employee and Employer Contribution Obligations
Contributions required of City employees are paid by the City on behalf of the
employees. The rates are set by statute and therefore remain unchanged from year to
year. The present rates are:
Member Rates as a
Category Percentage of Wages
Local miscellaneous members
25
7%
• •1 C W-11
Notes -to -the Financial Statements
(Continued)
(111 City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued)
The City is required to contribute the remaining amounts necessary to fund the benefits
for its members, using the actuarial bases recommended by the PERS actuaries and
actuarial consultants and adopted by the Board of Administration.
Funding Status and Progress
The amount shown below as the "pension benefit obligation" is a standardized measure of
the present value - of pension benefits, adjusted for the effects of step -rate benefits,
estimated to be payable in the future as a result of employee service to date. The measure
is intended to help assess the funding status of PERS on a going -concern basis, assess
progress made in accumulating sufficient assets to pay benefits when due, and make
comparisons among employers. The measure is the actuarial present value of credited
projected benefits and is independent of the funding method used to determine
contributions to PERS.
The pension benefit obligation was computed as part of an actuarial valuation performed
as of June 30, 1995. Neither an actuarial valuation nor an annual update as of June 30,
1996 is available at this time. Significant actuarial assumptions used in the valuation
include (a) a rate of return on the investment of present and future assets of 8.5 percent a
year compounded .annually, (b) projected salary increases of 4.5 percent a year
compounded annually, attributable to inflation, (c) no additional projected salary
increases attributable to seniority/merit, and (d) no post retirement benefit increases.
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
1) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued)
The total overfunded pension obligation applicable to the City employees was $212,408
at June 30, 1995, as follows:
Pension benefit obligation:
Retirees and beneficiaries currently receiving
benefits and terminated. employees not yet
receiving benefits
$ 60,295
Current employees:
Accumulated employee contribution including
allocated investment earnings
418,347
Employer -financed vested
215,083
Employer -financed non -vested
62,713
Total pension benefit obligation
756,438
Net assets available for benefits at cost
(Market value is $1,029,883)
968,846
Overfunded. pension benefit obligation
212 408
Changes in the pension benefit obligation from
last year resulted from the following:
Changes in benefit provisions
$
Changes in actuarial assumptions
Total
PERS used the Entry Age Normal Actuarial Cost Method which is a projected benefit
cost method. That is, it takes into account those benefits that are expected to be earned in
the future as well as those already accrued.
According to this cost method, the normal cost for an employee is the level amount which
would fund the projected benefit if it were paid annually from date of employment until
retirement. PERS uses a modification of the Entry Age Cost method in which the
employer's total normal cost is expressed as a level percent of payroll. PERS also uses
the level percentage of payroll method to amortize any unfunded actuarial liabilities. The
amortization period of the unfunded actuarial liability ends in the year 2000 for prior
service benefits and current service benefits.
27
CITY OF DIAMOND BAR.
11 - Notes -to -the Financial -Statements
(Continued)
(11) City Employees Retirement Plan (Defined Benefit Pension Plan) (Continued)
The significant actuarialassumptions used to compute the actuarially determined
contribution requirement are the same as those used to compute the pension benefit
obligation, as previously described.
The contribution to PERS for the year ended June 30, 1996 of $169,458 was made in
accordance with actuarially 'determined requirements computed through an actuarial
valuation performed as of June 30, 1994. The contribution consisted of the following:
Percent of
Covered
Amount PWOII
Normal cost $170,235 13.37%
Amortization of unfunded (overfunded)
actuarial accrued liability L777) (.06)%
Total contribution JIU.458 13.31%
Contribution:
Employer $ 80,303 6.31%
Employee 89,155 7.00%
Total contribution 169 458 13.31%
Trend Information
For the three years ended June 30, 1994, 1995 and 1996, the total contribution to PERS
was 13.34%, 13.31 % and 13.31 %, respectively, of the annual covered payroll. The total
contribution paid by the City included the employer contributions as well as the member
contribution for which the City is contractually obligated to pay on behalf of its
employees. The total contributions paid by the City was based upon actuarially
determined requirements.
28
CITY OF DIAMOND BAR
Notes to the Financial Statements
(Continued)
(11) City Eml2loyees Retirement Plan (Defined Benefit Pension Plan), (Continued)
Since the required ten-year information for the City of Diamond Bar alone is not
displayed in the California PERS annual report, this information must be disclosed in the
financial statements of the City. This ten'year historical trend information gives an
indication of the progress made in accumulating sufficient assets to pay benefits when
due. However, the year ended June 30, 1990 is the first year the City participated in
PERS. Moreover, such information for the year ended June 30, 1996 is not yet available.
Until ten years of data are available, as many years as are available will be presented.
Showing unfunded pension benefit obligation as a percentage of annual covered payroll
approximately adjusts for the effects of inflation, thereby enhancing comparability for
trend analysis purposes. Available trend information (in hundreds) is summarized as
follows:
(12) Due From and To Other Funds
Current interftind receivables and payables balances at June 30, 1996 are as follows:
General fund
Special revenue funds:
Safe parks
Community development block grant
Capital projects funds:
Redevelopment agency
Total
W
Current
Current
Interfund
Interflind
Receivables
Pgyables
(6)
28,719
(4)
Unfunded Pension
Actuarial
(1)
(2)
(3)
Unfunded
(5)
Benefit Obligation
Valuation
Net Assets
Pension
Percentage
Pension Benefit
Annual
as a Percentage
. as of
Available
Benefit
Funded
Obligation
Covered
of Covered Payroll
June 30
for Benefits
Obligation
LL)ZM
(2)-(1)
Payroll
fiAn
1990
250.7
288.8
86.8
38.1
3,122.1
1.2
1991
1,318.0
1,220.6
108.0
(97.5)
9,360.3
(1.0)
1992
3,106.8
2,632.3
118.0
(474.6)
11,060.5
(4.3)
1993
4,743.9
3,839.9
123.5
(904.1)
10,098.5
(9.0)
1994
7,434.8
5,533.6
134.4
(1,901.2)
14,408.0
(13.2)
1995
9,688.4
7,564.3
128.1
(2,124.1)
13,817.2
(15.4)
(12) Due From and To Other Funds
Current interftind receivables and payables balances at June 30, 1996 are as follows:
General fund
Special revenue funds:
Safe parks
Community development block grant
Capital projects funds:
Redevelopment agency
Total
W
Current
Current
Interfund
Interflind
Receivables
Pgyables
$102,055
28,719
49,715
47,732
24,111 -
126 166
126,166 126._166
- Notes -to the Financial Statements
(Continued)
(13) Expenditures in Excess of Appropriations
Expenditures and transfers out for the year ended June 30, 1996 exceeded the
appropriations for expenditures and transfers out of the following funds:
Special revenue funds:
Bicycle and pedestrian
Budget
Actual Variance
$ - 16,308 (16,308)
Management's explanation for the expenditures in excess of appropriations is summarized
as follows:
These finds are required to be spent on bicycle and pedestrian paths within the territorial
limits of the City. Furthermore, funds are required to be expended within a defined time
period. The City did not expend the funds within the required time period and must,
therefore, reimburse the funding agency. This reimbursement was not budgeted for in the
current year.
(14) Risk Management - Coverage
The City participates in the Southern California Joint Powers Insurance Authority. The
purpose of this organization is to reduce the cost of liability insurance coverage by having
the member cities act as self insurers among themselves. The City's. self-insurance
retention level for Comprehensive General Liability claims is $20,000 with a pro rata
sharing of all member incurred losses up to $10,000,000 per occurrence.
The membership of SCJPIA consists of approximately 78 cities with similar interests and
needs regarding general liability insurance. Premiums are based upon the losses incurred
by the insured and rebates are possible if the losses are minimal. The Board of Directors
sets the premiums, and each member city is represented on the Board. For the past three
years, the City's liability for claims payable, if any, did not significantly exceed its
deposit with SCJPIA and -therefore no liability for claims payable has been recorded in
the general long-term debt account group. In addition, for the past three years, claim
payments have not exceeded the amount of applicable insurance coverage.
(15) Contingent Liabilities
The City is a defendant in various litigation arising in the normal course of operations. In
the opinion of management and counsel, the outcome is not expected to materially
adversely affect the financial position of the City.
30
GENERAL FUND
To account for all of the general revenue of the City not specifically levied or collected for other
City funds and for expenditures related to rendering the general services provided by the City.
31
CITY OF DIAMOND BAR EXHIBIT A-1
General Fund
Comparative Balance Sheets
Year -ended June 30i-1996
Assets
Cash and investments
Accounts receivable
Interest receivable
Due from other funds
Due from other governments
Advances to other funds
Total assets
Liabilities and fund equity
Liabilities:
Accounts payable
Accrued expenses
Retentions payable
Deferred revenue
Due to other funds
Deposits
Total liabilities
Fund equity:
Reserved for:
Debt service
Encumbrances
Advances to the Diamond Bar Redevelopment Agency
Unreserved:
Designated for:
Specific projects and programs
Undesignated
Total fund equity .
Total liabilities and fund equity
32
1996 1995
$10,256,977
7,967,952
66,536
181,919
232,688
217,738
102,055
142,193
677,620
1,280,067
48.027
-
$11,383,903 9,789,869
$ 1,055,367 1,152,678
72,832 62,922
6,659
15,253 112,723
28,719 25,022
304,728 251.493
1,476,899 1,611,497
117,492 225,687
140,836 78,979
48,027 -
181,825 162,252
9,418,824 7,711,454
9.907,004 8,178,372
$11,383,903 9,789,869
EXHIBIT A-2
CITY OF DIAMOND BAR
General Fund
Comparative Statement of Revenues, Expenditures and Changes in Fund Balances
For the fiscal years ended June 30, 1996 and 1995
Revenues:
Taxes
Licenses, permits and fees
Intergovernmental
Fines and forfeits
Interest
Otherrevenues
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks, recreation and culture
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Proceeds of capital lease
Total other financing sources (uses)
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses
Fund balances at beginning of year, as restated
Fund balances at end of year
33
1996
$5,236,509
919,942
2,759,635
261,138
507,613
46.556
9,731,393
2,007,753
4,110,104
1,136,885
1,102,053
89.637
8,446,432
1,284,961
633,450
(386,879)
246,571
1,531,532
8,375,472
$9,907,004
1995
4,964,207
748,198
2,859,755
253,824
394,839
51.000
9,271,823
1,922,452
4,099,515
1,123,633
1,027,979
67.884
8,241,463
1,030,360
625,573
(383,679).
22,356
264,250
1,294,61.0
6,883,762
8,178,372
Taxes:
Real estate transfer tax
Sales and use tax
Franchise fees
Transient occupancy tax
Property tax allocation
Total taxes
Intergovernmental:
Motor vehicle in lieu tax
Library services
Homeowners exemption
Off highway tax
Grants
Total intergovernmental
Licenses, permits and fees
Fines, forfeitures and penalties,
and court fines
Interest earned on investments
Other:
Rental income
Donations
Miscellaneous
Total other revenue
Total revenues
CITY OF DIAMOND BAR EXHIBIT A-3
General -Fund
Revenue Detail - Budget and Actual
Year ended June 30 1996
Budget
$ 110,000
2,150,000
650;000
200,000
1,950.000
5,060,000
2,451,000
25,000
1,500
7,500
2,485,000
974,800
.256,500
406,500
25,000
- - ----- 9,200
34,200
$9,217,000
34
1996
Actual
124,060
2,340,848
654,805
227,531
1,889.259
5,236,509
2,712,513
30,673
1,174
15,275
2,759,635
-919,942
261,138
507,613
26,239
1,260
19.057
46,556
9,731,393
Variance -
Favorable
(_Unfavorable)
14,060
190,848
4,805
27,537
60 741j
176,509
261,513
5,673
(326)
-----7,775
274,635
L54,858)
----4,638
101,113
11995
Actual
113,394
2,173,979
647,518
152,341
1,876,975
4,964,207
2,601,163
207,000
35,711
411
15.470
2,859.755
748,198
253,824
394,839
1,239
26,149
.19260
1,585
9,857
23,266
12,356
51,000
514.,393
9,.271823
EXHIBIT A-4
CITY OF DIAMOND BAR
General Fund
Expenditure Detail - Budget and Actual
Year ended June 30, 1996
35
Variance -
1996
Favorable
1995
Budget
Actual
(Unfavorable)
Actual
General government:
City Council
113,950
92,3101
21,649
89,213
City Manager
399,950
426,259
(26,309)
398,839
City Clerk
301,130
265,557
35,573
189,862
Finance
210,150
205,979
4,171
210,890
City Attorney
150,000
108,461
41,539
132,474
Planning
586,050
393,458
192,592
428,643
Economic development
141,250
57,552
83,698
-
General government
413,950
357,868
56,082
346,307
Promotion
115,600
100,318
15,282
126,224
Total general government
2,432,030
2,007,753
424,277
1,922,452
Public safety:
Law enforcement
3,881,750
3,824,357
57,393
3,855,221
Fire
7,530
-7,530
7,359
Building and safety
214,000
213,659
341
170,088
Animal control
62,510
62,510
-
54,169
Emergency preparation
16,800
9,578
7,222
12,678
Total public safety
4,182,590
4,110,104
72,486
4,099,515
Public works
1,422,741
1,136,885
285,856
1,123,633
Parks, recreation, and culture
1,243,954
1,102,053
141,901
1,027,979
Capital outlay
123,312
89,637
33,675
67,884
Total expenditures
627
8,446,432
958,195
8,241,463
35
CITY OF DIAMOND BAR
Special Revenue Funds
Combining Balance Sheet
Year ended June 30, 1996
Integrated
State Prop A Prop C Waste Air Quality Park
Gas Tax Transit Transit Management Improvement Fees
Assets
Cash and investments $2,381,290 1,446,391 1,516,842. 87,424
Accounts receivable - 18,154
Due from other funds -
Due from other
governments 116,537 51,643 72.395 20.410
Total assets $2,497,827 1,498,034 1,589,237 125,988
Liabilities and fund balances
Liabilities:
Accounts payable
$
47,529
5,938
Accrued expenses
686
505
Retention payable
-
-
Due to other funds
Due to other
governments
Total liabilities
-
48,215
-
6,443
Fund balances:
Reserved f6r:
Encumbrances
53,613
-
8,276
9,267
Unreserved:
Designated for:
Specific projects
and programs
2,444,214
1,449,819
1,580,961
110,278
Undesignated
-
-
-
Total. fund balances
2,497,827
1,449,819
1,589,237
119,545
Total liabilities and
fund balances
2,497.827
1,498,034
1,589,237
125.,988
38
113,843 316,307
15,600
129,443 316.,.307
628
435
1,063
128,380 316,307
128,380 316,307
129,443 316,307
5,259 58,858 -
- 970 441 -
49,715 47,732 - -
- - 16,308
49,715 53,961 59,299 16,308
6,884 - 514 -
405,264 9,956
6884 -
405,778 9,956
49,715 53,961 465,077 26,264
39
EXHIBIT B-1
Totals
1996
Community
Landscape
Bicycle
Prop A
Development
Maintenance
and
Safe Parks
Block Grant
Districts
Pedestrian
-
-
434,710
26,264
49,715
53,961
30,367
-
49,715
53,961
465,077
26,264
5,259 58,858 -
- 970 441 -
49,715 47,732 - -
- - 16,308
49,715 53,961 59,299 16,308
6,884 - 514 -
405,264 9,956
6884 -
405,778 9,956
49,715 53,961 465,077 26,264
39
EXHIBIT B-1
Totals
1996
1995
6,323,071
5,972,302
18,154
3,210
-
60,686
410,628
320,544
6,751,853
6,356,742
118,212
119,593
3,037
3,298
-
2,098
97,447
715,663
16,308
-
235,004
840,652
78,554
440,284
6,445,179
5,075,806
(6,884)
-
6,516,849
5.516.090
6,751,853 6,356,742
CITY OF DIAMOND BAR
Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year ended June 30, 1996
40
Integrated
State
Prop A
Prop C
Waste
Air Quality
. Park
Gas Tax
Transit
Transit Management
Improvement
Fees
Revenues:
Special Assessments $ -
-
-
_
_
-
Licenses, permits and
fees
64,475
Intergovernmental 1,340,169
556,623
587,969
44,723
60,041
-
Charges for services -
201,622
-
100,275
-
-
Interest 148,207
70,681
77,576
4,269
5,483
19,767
Other revenues -
4,000
-
-
Total revenues 1,488,376
832,926
665,545
149,267
65,524
84,242
Expenditures:
Current:
Highways and streets 18,821
15,034
-
-
_
Public works -
434,479
-
80,698
-
-
Community development -
-
-
-
35,026
-
Parks, recreation and
culture -
25,083
-
-
-
_
Capital outlay -
-
-
1,763
-
Total expenditures 18,821
474,596
-
80,698
36,789
-
Excess (deficiency) of
revenues over (under)
expenditures 1,469,555
358,330
665,545
68,569
28,735
84,242
Other financing sources
(uses):
Operating transfers in -
-
-
-
-
-
Operating transfers out X1,329,672)0.773)
-
-13(
3,339)
Total other financing
sources (uses) (1,329,672)
-
35� 0.773)
-
(133,339)
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing
uses 139,883
358,330
314,772
68,569
28,735
(49,097)
Fund balances at beginning
of year, as restated 2,357,944
1,091,489
1,274,465
50,976
99,645
365,404
Fund balances at end of
year $2,497,827
1,449,819
1,589,237
119,545
128,380
316,307
40
- - 381,078 -
- 102,154 - 16,308
295 -
102,449 381,078 16,308
EXHIBIT B-)
Community
Landscape
Bicycle
Prop A
Development
Maintenance
and
Safe Parks
Block Grant
Districts
Pedestrian
-
-
538,896
-
68,520
300,164
17,252
-
-
-
14,848
7,756
231
-
-
68,520
300,395
570,996
7,756
- - 381,078 -
- 102,154 - 16,308
295 -
102,449 381,078 16,308
EXHIBIT B-)
4,233,547 3,759,127
33,855 327,168
896,255 701,265
153,488 111,141
25,083 44,309.
2,058 8,712
1,110,739 1,192,595
68,520 197,946 189,918
(8,552) 3,122,808 2,566,532
10,992
_ (68,520) 19( 7,946) (122,696) 2,203,946) . (2144,844)
(6&520) 19( 7,946) (123,69J6 (2,203,946) (2,833,852)
189,918 (132,248)
215,860 142,204
405.778 9,956
41
918,862 (267,320)
5,597,987 5,783,410
6,516,849 5,516,090
Totals
1996
1995
538,896
476,148
64,475
74,190
2,975,461
2,664,545
301,897
210,136
348,587
328,709
4,231
5,399
4,233,547 3,759,127
33,855 327,168
896,255 701,265
153,488 111,141
25,083 44,309.
2,058 8,712
1,110,739 1,192,595
68,520 197,946 189,918
(8,552) 3,122,808 2,566,532
10,992
_ (68,520) 19( 7,946) (122,696) 2,203,946) . (2144,844)
(6&520) 19( 7,946) (123,69J6 (2,203,946) (2,833,852)
189,918 (132,248)
215,860 142,204
405.778 9,956
41
918,862 (267,320)
5,597,987 5,783,410
6,516,849 5,516,090
EXHIBIT B-1
CITY OF DIAMOND BAR
State Gas Tax Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
Year ended June 30, 1996
42
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$1,275,950
1,340,169
64,219
Interest
110,000
-- , 148,207
38,207
Total revenues
1,385,950
1,488,376
102,426
Expenditures:
Current:
Highways and streets
-
18,821
(18,821)
Total expenditures
18,821(18,821)
Excess (deficiency) of
revenues over (under)
expenditures
1,385,950
1,469,555
83,605
Other financing sources (uses):
Operating transfers out
(2,281;150)
1.329.672)
951,478
Total other financing sources (uses)
f1211,150)
(L222..672
951,478
Excess (deficiency) of revenues
and other financing sources
over (under) expenditures and
other financing uses
(895,200)
139,883
1,035,083
Fund balances at beginning of year,
as restated
2,357,944
2,357,944
-
Fund balances at end of year
1A62_,744
2,497,827
1,0350 83
42
CITY OF DIAMOND BAR EXHIBIT B-4
Proposition A Transit Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual.
Year ended June 30, 1996
43
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$ 551,000
556,623
5,623
Charges for services
245,000
201,622
(43,378)
Interest
60,000
70,681
10,681
Other revenues
-
4,000
4,000
Total revenues
856,000
832,926
123 074
Expenditures:
Current:
Highways and streets
-
15,034
(15,034)
Public works
469,710
434,479
35,231
Parks, recreation and culture
72,000
25,083
46,917
Total expenditures
541,710
474,596
67,114
Excess (deficiency) of revenues
over (under) expenditures. 1
314,290
358,330
44,040
Other financing sources (uses)
Operating transfers out
.000
124,000
Total other financing sources (uses)
_(124,000)
124,000
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
190,290
358,330
168,040
Fund balances at beginning of year
1,091,489
1,091,489
Fund balances at end of year
J1 281.J79
1,.449819
168,040
43
EXHIBIT B-5
CITY OF DIAMOND BAR
Proposition C Transit Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$ 552,520
587,969
35,449
Interest
60,000
77,576,
17,576
Total revenues
612,520
665,545
53,025
Excess (deficiency) of
revenues over (under) expenditures
612,520
665,545
53,025
Other financing sources (uses)
Operating transfers outLUiLo_ojo
_125-01773)
804,227
Total other financing sources (uses)
1155,000
350 773
804,227
Excess (deficiency) of revenues
and other financing sources over
(under) expenditures and other
financing uses
(542,480)
314,772
857,252
Fund balances at beginning of year
1,274,465
1,274,465
Fund balances at end of year
731 985
1,589.,237
1.
857,252
CITY OF DIAMOND BAR EXHIBIT B-6
Integrated Waste Management Fund
Statement of Revenues, Expenditures and Changes
es in Fund Balances -
Budget and Actual
Year ended June 30, 1996
45
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$ 39,000
44,723
5,723
Charges for services
78,000
100,275
22,275
Interest
— 1,500
4,269
2,769
Total revenues
118,500
149,267
30,767
Expenditures:
Current:
Public works
118,010
80,698
37,312
Total expenditures
118,010
80,698
37,312
Excess (deficiency) of
revenues over (under)
expenditures
490
68,569
68,079
Fund balances at beginning of year
50,976
50,976
Fund balances at end of year
51 466
119,545
68,,079
45
CITY OF DIAMOND BAR EXHIBIT B-7
Air -Quality -Improvement Fund
Statement. of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
46
Variance
Favorable
.Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$45,000
60,041
15,041
Interest
2,000
5,483
3,483
Total revenues
47,000
65,524
18,524
Expenditures:
Current:
Community development
47,600
35,026
12,574
Capital outlay
8,000
1,763
6,237
Total expenditures
55,600
36,789
18,811
Excess (deficiency) of
revenues over (under)
expenditures
(8,600)
28,735
37,335
Fund balances at beginning of year
99,645
99,645
-
Fund balances at end of year
J2L045
128,380
37,335
46
CITY OF DIAMOND BAR EXHIBIT B-8
Park Fees Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
47
Variance
Budget
ActualFavorable
(Unfavorable)
Revenues:
Licenses, permits and fees
Interest.
$250,000
64,475
(185,525)
- 20.000
19,767
233
Total revenues
270,000
84.242
185 758
Excess (deficiency) of revenues
over (under) expenditures
270.00084
_,242
185 758)
Other financing sources (uses):
Operating transfers out
270 000
—)
133 339
1.36,661
Total other financing sources (uses)
270 000
133 339
�
136,661
Excess (deficiency) of
revenues and other financing
sources over (under) expenditures
and other financing uses
-
(49,097)
(49,097)
Fund balances at beginning of year
365.404
365,404
Fund balances at end of year
365 404
316.307
49 097
47
CITY OF DIAMOND BAR EXHIBIT B-9
Proposition A -Safe -Parks Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
48
Variance
Favorable
Actual (Unfavorable)
68,520 (1-995,989
68,520 U.2 95 989)
68,520
Budget
Revenues:
1,995,989
Intergovernmental2
064 509
Total revenues
2,064.509
Excess (deficiency) of
revenues over (under)
expenditures
2,064,509
Other financing sources (uses):
Operating transfers out
2 064 509
Total other financing sources (uses)
2 064 509
Excess (deficiency) of
revenues and other financing
.sources over (under)
expenditures and other
financing uses
_
Fund balances at beginning of year
-
Fund balances at end of year
48
Variance
Favorable
Actual (Unfavorable)
68,520 (1-995,989
68,520 U.2 95 989)
68,520
1 995 989
68 520
1,995,989
(a520)
1,995,989
CITY OF DIAMOND BAR
Community Development Block Grant Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
49
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$612,765
300,164
(312,601)
Other revenues
231
231
Total revenues
612,765
300,395
(312.370)
Expenditures:
Current:
Community development
111,500
102,154
9,346
Capital outlay
300
295
5
'Total expenditures
111,800
102,449
9,351
Excess (deficiency) of
revenues over (under)
expenditures
500,965
197,946
(303.019)
Other financing sources (uses):
Operating transfers out(393,965)
(121.9�46
196,019
Total other financing sources (uses)
Q21,9-6-5)
(127 946
196,019
Excess (deficiency) of
revenues and other financing
sources over (under) expenditures
and other financing uses
107,000
(107,000)
Fund balances at beginning of year
Fund balances at end of year
U.07 �000
(197,0-0-0)
49
CITY OF DIAMOND BAR EXHIBIT B-11
Landscape Maintenance Districts Funds
Statement of Revenues,Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
50
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Special assessments
$547,632
538,896
(8,736)
Intergovernmental
-
17,252
17,252
Interest
5,300
14,848
9,548
Total revenues
552,932
570,996
18,064 f
Expenditures:
t
Current:
Public works
451,189
381,078
70,111
Total expenditures
451,189
381,078
70,111
Excess (deficiency) of
revenues over (under)
expenditures
101,743
189,918
88,175
Fund balances at beginning of year
215,860
215,860
-
Fund balances at end of year
J11Z.,603
405,778
88,175
50
EXHIBIT B-12
CITY OF DIAMOND BAR
Bicycle and Pedestrian Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
51
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Intergovernmental
$20,000
-
(20,000)
Interest
3,000
7,756
4,756
Total revenues
23,000
7,756(IJ244)
Expenditures:
Current:
Community development
16,308
(I6,308
Total expenditures
16,308
(16308)
Excess (deficiency) of
revenues over (under)
expenditures
23,000
_f8 552)
(31.552)
Other financing sources (uses):
Operating transfers outL154.,692)
(123696)
30,996
Total other financing sources (uses)
(154,692)
(121,696)
30,996
Excess (deficiency) of
revenues and other financing
sources over (under) expenditures
and other financing uses
(131,692)
(132,248)
(556)
Fund balances at beginning of year
142,204
142,204
Fund balances at end of year
i -I0 512
9,956(556)
——
51
(This page intentionally left blank)
52
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the purchase or construction of major capital
facilities which are not financed by Proprietary Funds or Trust Funds. Capital Projects Funds are
ordinarily not used to account for the acquisition of furniture, fixtures, machinery, equipment and
other relatively minor or comparatively short-lived general fixed assets.
The City of Diamond Bar has three Capital Projects Funds:
Grand Avenue Construction -Fund To account. for the expenditure of funds received from the
County of San Bernardino in settlement of the Grand Avenue litigation. These funds are used for
street and traffic improvements along Grand Avenue.
Capital Improvement Fund - To account for the costs of constructing street improvements, park
improvements, and other public improvements not normally included within the other Capital
Projects funds. Financing is provided by developer fees and interfand transfers from the Special
Revenue Funds and the General Fund.
Redevelopment Agency F - To account for general fund monies transferred to the
Redevelopment Agency for approved capital projects and administrative costs.
53
CITY OF DIAMOND BAR EXHIBIT C-1
Capital Projects Funds
Combining Balance Sheet
Year ended June 30 1996
54
Grand
Avenue
Capital
Redevelopment
Totals
Construction
_Improvement
Agency
1996
1995
Assets
Cash and investments
Due from other funds
$139,131
252,879
-
392,010
540,435
-
-
24,111
24,111
539,031
Total assets
112E 131
252,879
24111
416,121
1,079,466
Liabilities and fund balances
Liabilities:
Accounts payable
$ -
74,311
24,111
98,422
386,387
Accrued expenses
-
227
-
227
310
Retentions payable
-
18,318
-
18,318
161,031
Due to other funds
-
-
-
-
1,225
Total liabilities
-
92,856
24,111
116,967
548,953
Fund balances:
Reserved for:
Encumbrances
18,600
76,399
-
94,999
395,061
Unreserved:
Designated for:
Specific projects
and programs
120,531
83,624
-
204,155
135,452
Total fund balances
139,131
160,023
299,154
530,513
Total liabilities
and fund balances
1122,11_31
252,879
24,111
416,121
1,079,466
54
CITY OF DIAMOND BAR
EXHIBIT C-2
Capital Projects Funds
Combining
Statement of Revenues, Expenditures
and Changes in Fund Balances
Year ended June 30, 1996
Grand
Avenue Capital Redevelopment Totals
Construction Improvement Agency �99
1995
Revenues:
Licenses, permits
and fees
Intergovernmental
$ - 82,058
- -
82,058
59,200
Interest
- 7.655
-- 7 .,655
116,100
9,145
Total revenues
- - -89,713
89.713
184.445
Expenditures:
Current:
Highways and streets
Public works
575,930 438,269
1,014,199
1-281,010
'853,363
- 338,072 -
Community development - 110,533 48,027
338,072
158,560
236,569
Capital outlay
Debt service:
- 440,864 -
440,864
41,293
Principal
Interest
- 100,000
- 4.930
100,000
100,000
-
4,930.
8,780
Total expenditures
575,930 1..432 ,668 48,027
2,056625
2,521,015
Excess (deficiency) of
revenues over (under)
expenditures
I575 9-3-0 (1,342,955) (I8 027)
(L 2! L69 �12
9316.,570)
Other financing
sources (uses):
Operating transfers in
Proceeds of advances
320,000 1,367,526 -
1,687,526
2,332,488
- - - 48,027
48,027
-
Total other financing
sources (uses)
320,000 1,367,526 48,027
1,73553
J5
2,332,488
Excess (deficiency) of
revenues and other
financing sources over
(under) expenditures
and other financing
uses
(255,930) 24,571
(231,359)
(4,082)
Fund balances at
beginning of year
395,061 135,452
530,513
534,595
Fund balances at end
of year
$139,131 160,023
299,154
530,513-
55
EXHIBIT C-3
CITY
OF DIAMOND BAR
:Grand
Avenue ConstructionFund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
Variance
Favorable
Budget
Actual
(Unfavorable)
Expenditures:
Current:
Highways and streets
$724,300
575,930
148,370 I
Total expenditures
724,300
575,930
148,370
Excess (deficiency) of
revenues over (under)
l
expenditures
(724,300)
575 930 -
148,370
Other financing sources (uses):
Operating transfers in
320,000
320,000
-
Total other financing sources (uses)
320,000
320,000
-
Excess (deficiency) of
revenues and other financing
sources over (under) expenditures
and other financing uses
(404,300)
(255,930)
148,370
Fund balances at beginning of year
395,061
395,061
- I
Fund balances (deficit) at end of year
L12,.239)
139.131
148,370
56
f
CITY OF DIAMOND BAR EXHIBIT C-4
Capital Improvement Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
57
Variance
Favorable
Budget
Actual
(Unfavorable)
Revenues:
Licenses, permits and fees
$ 40,000
82,058
42,058
Intergovernmental
63,000
-(63,000)
Interest
-
7,655
7,655
Total revenues
103,000
89.713
(13,287)
Expenditures:
Current:
Highways and streets
2,258,292
438,269
1,820,023
Public works
949,400
338,072
611,328
Community development
298,445
110,533
187,912
Capital outlay
3,277,095
440,864
2,836,231
Debt service:
Principal
100,000
100,000
-
Interest
4,930
4,930
-
Total expenditures
6,888,162
1,432,668
5,455,494
Excess (deficiency) of
revenues over (under)
expenditures
_(6,785,162)1(
,342.955
5,442,207
Other financing sources (uses):
Operating transfers in
6,790,662
1,367,526
5.423,-136
Total other financing sources (uses)
6,790,662
1,367,526
(1423,1 3 6)
Excess (deficiency) of
revenues and other financing
sources over (under) expenditures
and other financing uses
5,500
24,571
19,071
Fund balances at beginning of year
135,452
135,452
Fund balances at end of year
140 952
_160.,023
_19..071
57
CITY OF DIAMOND BAR EXHIBIT C-5
Redevelopment Agency Fund
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
Year ended June 30, 1996
Expenditures:
Current:
Community development
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses):
Proceeds of advances from the City
Total other financing sources (uses)
Excess (deficiency) of
revenues and other financing
sources over (under) expenditures
and other financing uses
Fund balances at beginning of year
Fund balances at end of year
Bu et
$109,150
109,150
109 150
109,150
109,150
58
Variance
Favorable
Actual
(Unfavorable)
48,027
61,123
48,027
61,123
(1&027
61,123
48.027
61 123)
48,027
(61,123)
AGENCY FUNDS
Agency Funds are used to account for assets held by a government as an agent for individuals,
private organizations, other governments and/or other funds.
The City of Diamond Bar has one Agency Fund:
Deferred Compensation Agency Fund - To account for monies held in trust by the City for
employees who elect to defer a portion of their salary until retirement.
59
CITY OF DIAMOND BAR EXHIBIT D- I
Agency Funds
Statement of Changes in Assets and Liabilities
Year ended June 30, 1996
Balance at Balance at
July 1, 1995 Additions Deductions June 30, 1996
Deferred ComDensation Fund
Assets
Cash and investments 325 131 122,511 66,.124 381.518
Liabilities
Deferred compensation payable J325 131 122,511 66,,.124 381,518
60
GENERAL FIXED ASSETS ACCOUNT GROUP
61
CITY OF DIAMOND BAR
Comparative Schedule of General Fixed Assets by Source
June 30, 1996 and 1995
General fixed assets:
Land
Buildings
Improvements other than buildings
Furniture and equipment
Total general fixed assets
Investment in general fixed assets by source:
General Fund
Donations
Federal and state governments
Assessment districts
Total investment in general fixed assets
62
1996
$1,969,899
859,345
579,301
751,952
4,160,497
3,083,816
97,949
966,144
12,588
$4,160,497
10.1460901110
1995
1,961,615
859,345
579,301
684.279
4,084,540
3,002,922
98,649
970,381
12.588
4,.084540
63
EXHIBIT E-2
CITY OF DIAMOND BAR
Schedule of General Fixed Assets - by Function and Activity
June 30, 1996
Improvements
Furniture
Other than
and
Function and Activity
Land Buildings Buildings
Equipment
Total
General Government:
City Council
$ - - -
8,969
8,969
Administration
- - -
430,376
430,376
City Clerk
- - - -
16,381
16,381
Community Development
- - -
16,102
16,102
Finance
- - -
59,158
59,158
Other
409,899 - -
11,000
420,899
Total General Government
409,899
541,986
951,885
Public Safety:
Sheriff
- - -
13,775
13,775
Emergency Preparedness
-
25,882
25,882
Total Public Safety
-
39,657
39,657
Public Works
-
19,735
19,735
Culture and Recreation
1,560,000 859,345 579,301
117,714
3,116,360
Library
32,860
32,860
Total general fixed assets
$1,969,899 859,345 579,301
751,952
4,160,497
63
City of Diamond Bar Table 2
General Governmental Revenues by Source (1)
Since Incorporation in April, 1989
(unaudited)
Fiscal
Special
Licenses &
Inter-
Fines &
Use of Money
Other
Year
Taxes*
Assessments
Permits
Governmental
Forfeitures
& Property
Revenue
Total
1988-89
$21,093
$0
$112,578
$1,371,326
$1,946
$1,650
$46,625
$1,555,218
1989-90
$3,497,401
$409,454
$841,525
$5,271,606
$193,852
$440,520
$8,313
$10,662,671
11990-91
$4,409,302
$422,038
$597,771
$5,993,281
$281,891
$506,081
$55,307
$12,265,671
1991-92
$4,593,790
$466,369
$864,260
$5,067,309
$97,730
$578,340
$273,078
$11,940,876
1992-93
$4,494,173
$469,671
$724,694
$5,910,715
$123,242
$451,077
$101,305
$12,274,877
1993-94
$5,060,850
$499,030
$965,835
$5,539,046
$187,430
$466,209
$38,372
$12,756,772
1994-95
$5,174,343
$476,148
$881,588
$5,640,400
$253,824
$732,693
$56,399
$13,215,395
1995-96
$5,538,406
$538,896
$1,066,475
$5,735,09.6
$261,138
$863,855
$50,787
.$14,054,653
16
14
12
10
8
6
4
2
0
Total General Governmental Revenues I
1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 199495 1995-96
Fiscal Year
(1) Includes General, Special Revenue and Capital Project Funds
Note: 1991-1992 "Other Revenue" includes $179,679 of developer fees collected in the Special Revenue Fund
Note: Taxes category includes Charges for Services.
Source: City Finance Department
n
| ���� �� Diamond �
| =""� =. =U�B������ Bar
Secured Property Tax Levies and Collections
Since Incorporation April 1989
Fiscal
Year
1S88-89
198S -9O
19SO-91
1gS1-92
1992-93
1S93 -S4
1SS4-B5
1995-96
2,000
1,500
1,000
500
Total Current
Leyy
`
Not Available
$SO8/k]1
$1,089,679
$1'232.348
$1j17/482
$1.18O/435
$1'OO4.D08
$1'7B8.593
Total Current
Collections
Not Available
$835.873
$1'O13,5J2
$1'144.U1B
$1,0X25.382
$8i8/407
$1'825'S11
$i.711'S83
Percent ofLevy De7iqumntTax
Collected Receivables
Not Available
Not Available
92.02Y6
$72.529
93.02Y6
$78.107
92.83Y6
$88'327
91.78%
$92.101
69.34Y6
$301'968
80.1296
$178.157
�
Property Tax Collections (in thousands
U
1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1905-96
Note: The City ofDiamond Bar settled o property tax lawsuit with Los Angeles County that resulted in
additional property tax payments totalling $1.882,78S. The funds were received inthree CB payments
} \payments dated1994. 1994 and August 1995. These amounts are not included inthe
vv
above figures oethey ore0000c�tedvv�hthe in0a| transfer -�- corporation.
|
|
Source: Los Angeles County Auditor/Controller
Table 4
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Since Incorporation in April, 1989
(unaudited)
Tax
Secured Gross
Unsecured Gross
Percentage
Year
Value
Value
'Public Utility_
Exemptions
Net Value
Increase
1988-89*
$2,345,946,185
$0
$0
$0
$2,345,946,185
Not Applicable
1989-90*
$2,663,648,618
$0
$0
$0
$2,663,648,618
13.54%
1990-91
$2,926,368,10.5
$0
$827,618
$5,409,199
$2,921,786,524
9.69%
1991-92
$3,285,467,698
$40,698,263
$692,390
$10,921,667
$3,315,936,684
13.49%
1992-93
$3,493,803,851
$45,032,160
$0**
$27,932,643
$3,510,903,368
5.88%
1993-94
$3,536,453,242
$49,709,273
$844,313
$25,119,688
$3,561,887,140
1.45%
1994-95
$3,619,436,021
$57,158,841
$820,862
$33,523,553
$3,643,892,171
2.30%
1995-96
$3,659,337,876
$60,689,091
$825,138
$35,979,540
$3,684,872,565
1.12%
Net Assessed Value (in millions)
4,000
3,500
w
C:
3,000
i
2,500
2,000
1988-89* 1989-90* 1990-91
1991-92 1992-93 1993-94 1994-95 1995-96
Fiscal Year
*1988-89 and 1989-90 estimated by using the combined unincorporated areas of Pomona Unified School and Walnut Valley
Unified School District - Source: California Municipal Statistics
** Los Angeles County Auditor/Controller reported no Public Utility Valuations
Source: Los Angeles County Auditor/Controller, HdL Coren & Cone
68
Typical Property Tax Rates
(Percent of Assessed Value)
2.000
1.750
1.500
Table 5
1.250
City of Diamond Bar
0.750
Property Tax Rates - All Direct and Overlapping Governments
0.250
(Per $100 of Assessed Valuation)
1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96
Fiscal Year
Since Incorporation In April, 1989
(unaudited)
Fiscal
General
Los Angeles
Walnut Valley Walnut Valley L.A. County
L.A. County
Metropolitan
Year
L_yv
Coun
School District Water District Flood Control
Sanitation
Water District
Total
1988-89
-
-
- - -
-
-
Not Available
1989-90
-
-
- - -
-
-
Not Available
1990-91
1.0000000
0.0021040
0.1597230 0.0578770 0.0057860
0.0007470
0.0097000
1.2359370
1991-92
1.0000000
0.0018880
0.0404290 0.0516750 0.0053760
0.0002090
0.0089000
1.1084770
1992-93
1.0000000
0.0014090
0.0974170 0.0481650 0.0033970
0.0002060
0.0089000
1.1594940
1993-94
1.0000000
0.0017130
0.0863570 0.0448070 0.0042120
0.0000000
0.0089000
1.1459890
1994-95
1.0000000
0.0019930
0.0649030 0.0000000 0.0060410
0.0000000
0.0089000
1.0818370
1995-96
1.0000000
0.0018140
0.0089866 0.0000000 0.0009630
0.0000000
0.0089000
1.0206636
Typical Property Tax Rates
(Percent of Assessed Value)
2.000
1.750
1.500
1.250
1.000
0.750
0.500
0.250
0.000
1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96
Fiscal Year
Note: Property tax rates based on a typical tax rate area
Source: Los Angeles County Auditor/Controller, HdL Coren & Cone
$146,499,107 3.94%
Source: HdL Coren & Cone
70
Table 6
City of Diamond Bar
Principal Taxpayers
Jane 30, 1996
1
1995-1996
Percentage of Total
Taxpayer
Primary Use Assessed Valuation
Net Assessed Valuation f
Diamond Bar Business Associate
Commercial $29,308,591
0.79%
Landsing Pacific Fund
Commercial $22,196,969
0.60%
Hidden Manna Corporation
Commercial $18,792,131
0.51%
Nikko Capital Corporation
Commercial $13,008,545
0.35%
Lincoln Emerald Pointe
Residential $11,958,061
0.32%
Shea Homes Limited Partnership
Industrial $10,822,638
0.29%
Martin Brattrud Properties
Commercial $10,685,643
0.29%
Nugit Maple Santee Partnership
Commercial $10,123,597
0.27/,
TCEP ii Properties Joint Venture
Commercial $10,084,582
0.270
/o
Margaret M. Tam Trust
Residential $9,518,350
0.26%
$146,499,107 3.94%
Source: HdL Coren & Cone
70
"�A
City of Diamond Bar
Computation of Legal Debt Margin
June 30, 1996
(unaudited)
Assessed Valuations:
Assessed Value $3,684,872,565
Add Back: Exempt Property $35,979,540
Total Assessed Value ,.$3,720,852,105
Legal Debt Margin:
Debt Limitation - 15% of Total Assessed Value* $558,127,816
Debt Applicable to Limit
Total Bonded Debt $0
Less: Special Assessment Bonds $0
Revenue Bonds $0
Available for Repayment of General Obligation Bonds $0
Total Debt Applicable to Limitation. $0
Legal Debt Margin $558,127,816
The City of Diamond Bar has no bonded indebtedness.
* Section 43605 of the California Government Code
Source: City Finance Department, Hdi Coren & Cone
bE
City of Diamond Bar
Computation of Direct and Overlapping Debt
June 30 ,1996
(unaudited)
I
Los Angeles County Facilities 1987 Debt Service
LA Co Flood Control Storm Drain Debt Service
Metropolitan Water District Debt Service
Pomona Unified School District. '91-A Debt Service
Pomona Unified School District.'91-B Debt Service
Pomona Unified School District. '91-C Debt Service
Pomona Unified School District. '91-D Debt Service
Pomona Unified School District. '91-E Debt Service
Pomona Unified School District.'91-F Debt Service
Walnut Valley Unified '78-A Debt Service
Walnut Valley Unified '91 -A Debt Service
Walnut Valley Unified '91-B Debt Service
Gross Bonded
Debt Balance % Applicable
$66,595,000
$61,975,000
$736,023,397
$5,000,000
$10,000,000
$20,000,000
$2,930,000
$7,500,000
$7,000,000
155,000
500,000
14,950,000
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT
0.798%
0.798%
0.798%
0.798%
0.832%
0.832%.
0.451 %
13.559%
:26.992%
26.992%
76.659%
23.471%
Table 8
•:.
mi.' "ggillm.
$561,653
$505,851
$6,445,121
$1,032,485
$2,064,970
$4,129,941
$605,036
$1,548,728
$1,445,479
$118,831
$289,412
$8,653,431
$27,400,938
Report reflects general obligation debt which is being repaid through voter -approved indebtedness. It excludes
revenue, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease
obligations and certificates of participation
SourciD: HdI Coren & Cone
72
City of Diamond Bar
Schedule of Insurance In Force
June 30, 1996
Type of Coverage
Limits/Deductibles
Insurer
Policy Period
Liability:
General Liability, Automobile
$10,000,000 combined single limit
Self Insured Program/
07/1/95-07/1/96
Liability, Bodily Injury, Property
limit each occurrence, $25,000,006
Southern California Joint
Damage, Personal Injury
aggregate. $20,000 self-insured
Powers Insurance Authority
retention
Special Liability:
Errors and Ommissions, Employ-
$1,000,000 each occurrence,
Self Insured Program/
07/1/95-07/1/96
ment Practices Injury, Contractual
$2,000,000 aggregate. Retained
Southern California Joint
Liability Injury, Broadcast/Publication
loss of $20,000 per occurrence and
Powers Insurance Authority
Publication Injury, Employee Benefits,
20% copayment
Administration Injury, Discimination
Injury
Property:
All -Risk, including buildings,
$2,189,646 limit, deductible of
Zurich Insurance
01/01/96 - 01/01/97
contents, garaged vehicles,
$5,000 per occurrence
contractor's equipment, fine arts,
rental income and other mis-
cellaneous extensions of coverage
Automobile Physical Damage
$151,370 limit, deductible of
Zurich Insurance
01/01/96 - 01/01/97
$1,000 per occurrence
Crime:
Public Employee Honesty Blanket
$25,000 limit
Western Surety
08/01/95 - 08/01/96
Bond
Public Official Bond (Mayor, City
$100,000 limit (except City Clerk)
Western Surety
08/01/95 - 08/01/96
Manager/Treasurer, City Clerk,
F
$25,000 limit - City Clerk
Accounting Manager)
Workers' Compensation:
Work-related injury/illness claims
California statutory limit;
State Compensation
10/01/95 - 10/01/96
for temporary and permanent
$1,000,000 employer's liability
Insurance Fund
]disability
Source: City Finance Department
73
Table 10
CITY OF DIAMOND BAR
DEMOGRAPHIC AND MISCELLANEOUS STATISTICAL INFORMATION
JUNE 30,1996
Dateof Incorporation .......................................................... I ..................................... April 18, 1989
Form of Gov emment .......................................................................................... Council -Manager
Area..................................................................
................................................ 14.9 Square Miles
Milesof Streets ....................................................................................................................... 137
Employees(full-time) ................................................................................................................ 25
Fire Protection (Los Angeles County Consolidated Fire Protection District):
Number of Stations 3
Number of Firemen and Officers ............................................................................................... 40
Police Protection (Contract with Los Angeles County):
Number of Stations 1
Numberof Officers .................................................................................................................. 27
Sewers:
SanitarySewers ............................................................................................................... 146.88
StormSewers .................................................................................... ; ................................ 31.95
Recreation and Culture:
Community Centers ........................................................................
.......................................... 1
Parks................................................................................................................. *** *, ..... 10
ParkAcreage (developed) .................................................................................................... 45.4
ParkAcreage (undeveloped) .................................................................................................... 97
Education:
ElementarySchools (K-6) ......................................................................................................... 7
MiddleSchools (6-8) ................................................................................................................. 2
Jr. High Schools (7-8) ............................................................................................................... 1
HighSchools (9-12) .................................................................................................................. 1
Population:*
Estimate. Only
Source: State of California, Department of Finance
74
Percentage
Date
Population
Increase
1989
60,000--
-
1990
53,672
-10.55
1991
53,596
- 0.14
1992
53,576
- 0.04
1993
54,315
1.32
1994
54,507
0.35
1995
54,284
- 0.41
1996
56,003
3.10
Estimate. Only
Source: State of California, Department of Finance
74
Table 11
City of Diamond Bar
Residential and Commercial Construction
Since Incorporation in April, 1989
(Unaudited)
Bank
Deposits
1988-89
$321,853,000
New Construction
$343,605,000
Fiscal
Residential (1)
Commercial
Year
Units
Value
Units
Value
1994-95
$423,640,000
1988-89
Not Available
Not Available
1989-90
39
$12,246,600
6
$269,372
1990-91
24
$6,989,816
17
$1,528,280
1991-92
26
$13,596,000
1
$500,000
1992-93
11
$6,757,000
2
$558,000
1993-94
10
$6,053,000
0
$0
1994-95
8
$44,619,400
0
$0
1995-96
26
$16,715,000
0
$0
Alterations and Additions
Fiscal
Residential (1)
Commercial
Year
Units
Value
Units
Value
1988-89
Not Available
Not Available
1989-90
437
$4,085,588
212
$4,036,302
1990-91
744
$8,868,435
83
$11,361,825
1991-92
638
$10,799,186
68
$3,585,038
1992-93
600
$6,894,000
94.
$6,259,900
1993-94
570
$5,781,300
95
$4,839,400
1994-95
487
$5,649,500
81
$2,454,800
1995-96
651
$7,285,100
52
$2,460,200
Bank
Deposits
1988-89
$321,853,000
-- 1989-90
$343,605,000
1990-91
$377,224,000
1991-92
i
$381,710,000
1992-93
$371,506,000
1993-94
$379,581,000
1994-95
$423,640,000
(1) Includes multiple dwellings
Source: City's Contract Building & Safety Provider, Findley Reports
W
Table 12
City of Diamond Bar
Ratio - Unreserved General Fund Balance to Annual General Fund Expenditures
Since Incorporation in April, 1989
(unaudited)
1.988-89 1989-90 1990-91 1991-92 1.992-93 1993-94 1994-95 1995-1996
Unreserved General Fund
Balance $50,915 $1,375,030 $2,200,322 $3,019,852 $3,305,067 $5,677,619 $7,711,454 $9,600,649
Annual General Fund
Expenditures $798,947 $6,600,559 $8,031,832 $8,208,271 $8,232,941 $9,329,431 $8,241,463 $8,446,432
Ratio 0.064 0.208 0.274 0.368 0.401 0.609 0.936 1.137
General Lund =Ratio
1.2
1.0
0.8
0.6
0.4
0.2
0.0 1
or
1
1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-1996
Fiscal Year
Source: City Finance Department
w
CITY OF DIAMOND BAIL
Schedule of Credits
June 30, 1996
Name
Terrence L. Belanger, City Manager
Linda G. Magnuson, Accounting Manager
Joann M. Gitmed, Senior Accountant
Conrad and Associates, C.P.A., L.L.P.
Mike Nelson, Community Relations Officer
Source: City of Diamond Bar
Area of Contribution
General Overview
Letter of Transmittal
General Overview
Letter of Transmittal
Statistical Tables
Statistical Tables
Financial Statements
Notes to Financial Statements
Cover and Divider Page Design
77
Table 13
CITY OF DIAMOND BAR
Schedule of Credits
June 30, 1996
Name
Terrence L. Belanger, City Manager
Linda G. Magnuson, Accounting Manager
Joann M. Gitmed, Senior Accountant
Conrad and Associates, C.P.A., L.L.P.
Mike Nelson, Community Relations Officer
Source: City of Diamond Bar
Area of Contribution
General Overview
Letter of Transmittal
General Overview
Letter of Transmittal
Statistical Tables
Statistical Tables
Financial Statements
Notes to Financial Statements
Cover and Divider Page Design
77
Table 13