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HomeMy WebLinkAboutCAFR - FY 1996-97City of Diamond Bar, California Year ended-June- 3-0f---I--997-- CITY OF DIAMOND BAR Diamond Bar, California Comprehensive Annual Financial Report Year ended June 30, 1997 Prepared by I (This page intentionally left blank) CITY OF DIAMOND BAR Comprehensive Annual Financial Report Year ended June 30, 1997 TABLE OF CONTENTS i 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 1 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 9 Notes to the Financial Statements 11 CITY OF DIAMOND BAR Comprehensive Annual Financial Report . (Continued) TABLE OF CONTENTS, (CONTINUED) Special Revenue Funds: ® Combining Balance Sheet EXHIBIT Page Supplemental Data: General Fund: B-2 44 ® Comparative Balance Sheets A-1 34 ® Comparative Statement of Revenues, Expenditures and Changes in Fund Balances A-2 35 ® Revenue Detail - Budget and Actual A-3 36 ® Expenditure Detail - Budget and Actual A-4 37 Special Revenue Funds: ® Combining Balance Sheet B-1 42 ® Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 44 ® State Gas Tax Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-3 46 ® Proposition A Transit Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-4 47 ® Proposition C Transit Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-5 48 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) ® Intermodal Surface Transportation Efficiency Act (ISTEA) Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ® 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 ® Bicycle and Pedestrian 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 • Citizens Option for Public Safety (COPS) Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual EXHIBIT Page B-6 49 B-7 50 B-8 51 B-9 52 B-10 53 B-11 54 B-12 55 B-13 56 CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS, (CONTINUED) EXHIBIT Page Asset Seizure Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-14 57 Landscape Maintenance Districts Funds: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual B-15 58 Capital Projects Funds: ® Combining Balance Sheet C-1 60 ® Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 61 ® Grand Avenue Construction Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-3 62 ® Capital Improvement Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-4 63 ® Redevelopment Agency Fund: Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual C-5 64 Agency Fund: Deferred Compensation Fund: Statement of Changes in Assets and Liabilities D-1 w CITY OF DIAMOND BAR Comprehensive Annual Financial Report (Continued) TABLE OF CONTENTS. (CONTINUED EXHIBIT Page General Fixed Assets Account Group: ® Comparative Schedule of General Fixed Assets by Source E-1 68 ® Schedule of General Fixed Assets by Function and Activity E-2 69 ® Schedule of Changes in General Fixed Assets by Function and Activity E-3 70 Table No. STATISTICAL SECTION: General Governmental Expenditures by Function 1 71 General Governmental Revenues by Source 2 72 Secured Property Tax Levies and Collections 3 73 Assessed and Estimated Actual Values of Taxable Property 4 74 Property Tax Rates - All Direct and Overlapping Governments 5 75 Principal Taxpayers 6 76 Computation of Legal Debt Margin 7 77 Computation of Direct and Overlapping Debt 8 78 Schedule of Insurance in Force 9 79 Demographic and Miscellaneous Statistical Information 10 80 Residential and Commercial Construction 11 81 Ratio - Unreserved General Fund Balance to Annual General Fund Expenditures 12 82 Schedule of Credits 13 83 (This page intentionally left blank.) 21660 E. Copley Drive, Suite 100 - Diamond Bar, CA 91765-4177 (909) 860-2489 - Fax '(909) 861-3117 City Online (BBS): (909) 860-5463 - Internet: http://www.ci.diamond-bar.ca.us October 30, 1997 Honorable Mayor and Members of the City Council City of Diamond Bar ,I Diamond Bar, California II It is a pleasure to submit the Comprehensive Annual Financial Report of the City (' of Diamond Bar for the fiscal year ended June 30, 1997. 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 I -- of the City's financial affairs have been included. Robert S. Huff The Comprehensive Annual Financial Report (CAFR) is presented in three Mayor sections; introductory, financial and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principal officials. Carol Herrera The financial section includes general purpose financial statements and schedules, Mayor Pro Tem the independent auditor's report, and the notes to the financial statements. The statistical section includes selected financial and demographic information on a Eileen R. Ansari multi-year basis. Council Member IClair W. Harmony In addition to the financial audit, the City is legally required to also conduct an i Council Member 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-133, Audits of Gary H. Werner States, Local Governments, and Non -Profit Organizations. Information related to Council Member this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control structure and I compliance with applicable laws and regulations, are not included with this report l and are issued as a separate document. i -i- Recycled paper 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, 1996. 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. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A.Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last two consecutive years (fiscal years ended 1995 and 1996). 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 has also been awarded the Certificate of Award for Outstanding Financial Reporting by the California Society of Municipal Finance Officers for its comprehensive annual financial report for the last two consecutive years. 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 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 couple of years, the City of Diamond Bar's economy has seen a slight improvement. This fiscal year was no exception as illustrated by stable sales tax revenues, new business starts and a slight reduction in office vacancy rates. In addition, this year saw the commencement of construction on several previously approved residential projects and a hotel. This, in addition to several new business commitments, is a signal that the economy in Diamond Bar is improving and will continue to grow. To help the City capitalize on the rebounding economy, the City's 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. For the Year. In the FY96-97 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 City's Capital Improvement Program for FY 96-97 included several street rehabilitation projects. These included Brea Canyon Road, Sunset Crossing (including the creation of a cul-de-sac), Pathfinder Road, and two segments of Diamond Bar Boulevard (Grand to SR60, and SR60 to the Northerly City Limits). Of these projects, the Sunset Crossing improvements were completed. At year end, contracts were awarded and construction was underway on all but the second Diamond Bar Boulevard rehabilitation project. This project was still in the design process on June 30, 1997. This fiscal year Southern California Edison, in partnership with the City, finished a utilities under -grounding project. This project has improved aesthetics within the City by under -grounding many of the above ground utility lines. As a part of this project, there was an addition of one hundred eighteen new street lights on Diamond Bar Boulevard. One of the added benefits of this project has been to increase 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. 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 17% 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 installed this year include Golden Springs Boulevard at the intersections of Calbourne, and Goldrush. Left turn signals were finished at Golden Springs at Diamond Bar Boulevard, Brea Canyon Road at Golden Springs, and Diamond Bar Boulevard at Mountain Laurel. In its continuing effort to serve the citizens of Diamond Bar, the City has been striving to improve and enhance recreational opportunities within the City. Part of this effort was accomplished this year with the creation of a City Wide Comprehensive Parks Master Plan. This plan was formulated to provide guidance for organized and structured development and renovation of the City's parks, recreation facilities, trails, open space and programs. On that note, after several years of planning and design, the City Council awarded a contract for the construction of a new park, Pantera Park. This park will be located on a 22 acre parcel of land, of which 15.5 acres will be developed. It will consist of a concession stand, activity room, basketball courts and various ball fields. Funding for this new addition is being provided through a combination of developer mitigation fees, Quimby Park Fees, and funding provided through the Los Angeles County's Safe Neighborhood Parks Act which was passed in 1992. The City continued its implementation of 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 building of a new hotel. , In it's continued support of the Diamond Bar branch of the Los Angeles County Public Library, last fiscal year the City created a library computer project. The City has -iv- provided for public use a computer network which consists of four state of the art personal computers and network server. During the current year, the City has continued to provide 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. 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 $600,000 and the loss in Gas Tax revenue could be as much as $311,000. To offset this budget shortfall, the City Council has focused on a cost-effective program to ensure a balanced budget. The FY 97-98 budget shows a reduction in annual expenditures which is accomplished through a reorganization plan, method of service delivery and service reduction. The overall goal is to implement revenue enhancement activities and expenditure reduction decisions that will mitigate the impact of this "shortfall", beginning in FY97-98. To further increase economic growth opportunities within the City, the City formed the Diamond Bar Community Redevelopment Agency in April 1996. The first priority of the Agency was to define the project and develop a redevelopment plan. The project area, Diamond Bar Economic Revitalization Area includes most of the City's commercial and industrial districts. This redevelopment plan will provide a framework for future activities. Some of these activities may include a Commercial and Industrial Rehabilitation program, a Business Expansion and Retention Program, and a Parking Improvements Program. Internal Control Structures Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure 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. WA Budgetary Controls 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 less than $10,000 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 must be approved by the 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. 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 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, specialrevenue, and capital project fund revenues for the fiscal year ended June 30, 1997 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 5,367,581 35.23% 131,072 2.44% Special Assessments 530,375 3.48% (8,521) -1.61% Licenses, Permits and Fees 1,417,073 9.30% 350,598 24.74% Intergovernmental 6,356,015 41.72% 620,919 9.77% Fines and Forfeitures 176,267 1.16% (84,871) -48.15% Charges for Services 340,448 2.23% 38,551 11.32% Interest 1,005,683 6.60% 141,828 14.10% Other Revenue 42,856 0.28% (7,931) -18.51% TOTAL 15,236,298 100.00% o l 181 645 -vi- There were increases in several of the tax categories. The major increase was in the collection of Transient Occupancy Tax (TOT). During FY94-95, one of the City's two hotels defaulted on their TOT. The hotel changed ownership, as a result, at the close of escrow all of the past due TOT was paid in full. Another increase was in the City's property tax revenues. This increase was mainly due to the tapering off of the re- evaluation of properties which resulted in refunds of prior year property taxes. Licenses, Permits, and Fees increased as a result of increased activity in the Building and Safety, Planning, and Engineering areas. The reason for this increase includes the implementation and construction of several previously approved development projects (including a 109 unit hotel). Additionally, since there has been a general improvement in the economy, office space vacancy rates have decreased resulting in an increase in the number of tenant improvement building permits issued. Interest revenues rose due to the general increase in the City's cash balances. At the end of FY95-96, the City's investable cash balances were $17,551,600 by the end of FY96- 97, the balance had increased to $21,079,356. This is an increase of $3,527,756. Fines and Forfeiture Revenue decreased due to a few factors. The main reason was a change made in the allocation and collection of vehicle code fines. In the past the City received a portion of the traffic school charges, starting this fiscal year, cities no longer received any of these fees. The decrease in vehicle fine revenue amounted to $68,374. In addition, parking fine and general fine collections were down slightly from the prior year. The increase in the Charges for Services Category is primarily due to continued increase in transit pass sales. This is as a result of increased usage of mass transit by the citizens of Diamond Bar. The following schedule presents a summary of general, special revenue, and capital project fund expenditures for the fiscal year ended June 30, 1997 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 1995-96 (DECREASE) General Government $2,164,939 18.33% $157,186 7.26% Public Safety Highways and Streets Public Works Community Development Parks, Recreation, & Culture Capital Outlay Debt Service TOTAL 4,095,518 34.67% (14,586) -0.36% 970,233 8.21% (77,821) -8.02% 2,279,731 19.30% (91,481) -4.01% 450,333 3.81% 138,285 30.71% 1,270,617 10.76% 143,481 11.29% 571,074 4.83% 38,515 6.74% 10,320 0.09% (94,610) -916.76% 11,812,765 100.00% 198,969 -vii- Expenditures for the 1995-96 fiscal year were $11,613,796 as compared with $11,812,765__for.the 1996-9.7.fiscal- year, -an- increase -of $1-98,969 -or-1.7 percent. -- There were both increases and decreases within the various divisions of the General Government category. There were no elections conducted in FY96-97. This provided a cost savings of approximately $79,300. This fiscal year, as a part of the general plan requirements, the City commenced the creation of a comprehensive development code at a one-time cost of approximately $100,000. The other major component of the increased costs in this category was from the opening of a new Community Services Center which is located within one of the City's shopping centers. This new center provides recreation class rooms and houses the recreation department staff, as well as providing a report writing area for the City's contracted sheriffs deputies. During FY96-97, the City's street and public works expenditures were reduced due to the timing of the construction of several projects. In many cases the design was completed during the fiscal year; however, the actual construction did not commence until late in the year or after the beginning of the new fiscal year.. The significant expenditure increase in the Community Development area was due to the costs incurred as a result of the formation of the Diamond Bar Economic Revitalization Area by the City's newly formed redevelopment agency. It is anticipated that these costs will be easily recovered via future tax increment revenues. The increase in the Parks, Recreation, and Culture section was largely due to the creation of the City Wide Comprehensive Parks Master, Plan at a cost of $106,000. The balance of the increase was primarily due to increases in the City's recreation services contract. During FY95-96, the City made the final payment of $100,000 on a four year land lease purchase agreement. This payment was included in the debt service requirements accordingly. The only debt service obligation paid this fiscal year were payments for the City's telephone system capital lease agreement. Fund Balances The General Fund ended the 1996-97 fiscal year with a fund balance of $11,577,411. This an increase of $1,670,407 or approximately an 16.9% increase from the balance at June 30, 1996. Of this, $822,300 is reserved for encumbrances, debt service and special programs. In addition, there is $113,716 designated for specific projects and programs, including $108,716 for library service enhancement. This leaves an undesignated fund balance of $10,641,395. -viii- Agency Fund The agency fund accounts for assets held by the City in a trustee or agent capacity. 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 FY96-97, funds were invested in the Local Agency Investment Fund (LAIF), which is administered by the State Treasurer's Office. Toward the latter part of the year, the City investible cash exceeded the maximum amount ($20,000,000) allowable by LAIF. As a result, the City opened a Money Market Mutual Fund account with Well's Fargo Bank. Any available cash over and above the LAIF account is invested in this fund. 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 5.59%. 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, 1997 is available at this time. The total over -funded pension obligation applicable to the City employees was $212,408 at June 30, 1995. 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 As of June 30, 1997, the City of Diamond Bar had no outstanding general obligation bonds. 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. The balance to be paid is $15,872 including $2,313 in interest. Risk Management The.City of Diamond Bar is a member_ofthe California. Joint Powers Insurance - -- Authority. (CJPIA) for the purpose of pooling its general liability losses and claims with the approximately 79 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 CJPIA. 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, 1997 was. $888,649 Acknowledgements The preparation of this Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the City's Finance Department staff, and through the cooperation of the entire City staff. Each staff member has my sincere appreciation for the contributions made in the preparation of this Report. I would also like to thank our independent auditor, Conrad & Associates L.L.P., for its expertise .and advice in the preparation of the City's Comprehensive Annual Financial Report. In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this' Report would not have been possible. Sincerely, Terrence L. Belanger City Manager -x- June 30, 1997 CITY COUNCIL Robert S. Huff, Mayor Carol Herrera, Mayor Pro Tern Eileen R. Ansari, Councilmember Clair W. Harmony, Councilmember Gary H. Werner, Councilmember CITY OFFICIALS Terrence L. Belanger, CityManager, James DeStefano, Deputy City Manager Frank M. Usher, Deputy City Manager Michael Jenkins, City Attorney Lynda Burgess, City Clerk Bob Rose, Community Services Director David G. Liu, Deputy Public Works Director Linda G. Magnuson, Assistant Finance Director xi f * "J k O C V U Q J V V _._� � c�� � � C m O 'Q "- � `° ` ;- '0 c Q c c Q f ry W a Q W a J U J� U U W �. cn o v .._ a� _O c0 E c 'u c O QQi N C c°i c N n N 0C eso. � w U 'C ¢Ln c E U ca y II it I w�! U U L c o f � c U L O cc f M M V � to v f c u c n to tn v •� C: c o aces` U N tt c E nc0 C4 L a. � w _ y N R1 R U v7 I— ._ u z .. �. C GJ t0 O a ® � � _� •� U U � .r. Vi Rf L w'C7 N_ L U . = cu (_ Uv% JL�a aj cern E > U v a' .� u = > - -0 'o o _W0 a- O 4 U U w a2f U __ «7 0. c cn c a L r m '- Certificate of. Achievement' for Excellence in - Financial Reporting. Presented to City of Diamond Bar, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1996 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. cE 0 OF WED S"T M CANADACORPORAMN President S CNICA66 Executive Director A lZrItli Ltl KO ff N xiv ESD I CONRAD CERTIFIED PUBLIC ACCOUNTANTS 1100 �SOCI I ES, L.L..P IRVI EA IN STREET, SUITE C �JCALIFORNIA92 14 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, 1997, 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting, principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 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, 1997, and the results of its operations and the cash flows of its proprietary fund type for the year then ended in conformity with generally accepted accounting principles. Our audit was performed 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, we have also issued our report dated August 29, 1997 on our consideration of the City of Diamond Bar's internal 'control over financial reporting and our tests of its compliance with certain provision of laws, regulations, contracts and grants. &.,./ i ., x - z "00. August 29, 1997 1 MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CITY OF DIAMOND BAR Combined Balance Sheet - All Fund Types and Account Groups June 30, 1997 See accompanying notes to the financial statements. 2 Proprietary Governmental Fund Types Fund Type General :Special Revenue apita Internal Proiects Service Assets and other debits Assets: Cash and investments (note 2) $11,303,329 8,123,195 762,904 890,203 Accounts receivable 114,327 13,148 - - Interest receivable 280,792 - - - Due from other funds (note 11) 441,420 - 105,889 - Due from other governments 730,103 739,113 - - Prepaid expenses - - _ Advances to other funds (note 6) 379,419 - - - Fixed assets (note 3) - Other debits: Amount to be provided for retirement of general long-term debt - - _ Total assets 113,249,390 8,875,456 868,793 890,203 Liabilities, equity and other credits Liabilities: Accounts payable $ 1,197,373 129,759 425,280 1,554 Accrued payroll 87,554 4,029 621 - Retentions payable - - 58,375 - Deferred revenue 10,320 - - - Due to other funds (note 11) 68,060 479,249 - - Deposits 308,672 - - - Due to other governments Compensated - 16,308 - - absences payable (note 4) - Obliggations under capital lease - (no es 4 and 5) - Advances from other funds (note 6) - Deferred compensation - - - payable (note 9) - - Total liabilities 1,671,979 629,345 484,276 1,554 Equity and other credits: Investment in general fixed assets - - - - Retained earnings: Reserved - - _ _ Unreserved - - - 888,649 Fund balances (note 8): Reserved 822,300 1,233,228 - - Unreserved - designated 113,716 7,012,883 384,517 - Unreserved - undesignated 10,641,395 - - - Total equity and other credits 11,577,411 8,246,111 384,517 888,649 Total liabilities, equity and other credits $13,249,390 8,875,456 868,793 890,203 See accompanying notes to the financial statements. 2 10,14,0110.31 Fiduciary Fund Type Account Groups Totals enera Ueneral (Memorandum Only) Agency Fixed Assets Long_ Term Debt 199'/ 1996 538,325 21,127,475 17,984,690 _ _ - - - 280,792 232,688 - - - 547,309 126,166 - - - 1,469,216 1,088,248 - - - 169,027 - 4,323,878 - 4,323,878 4,160,497 - - 495,786 495,786 165,519 538,325 4,323,878 495,786 29,241,831 24,009,021 - - - 1,753,966 1,272,001 - - - 92,204 76,096 - - - 58,375 18,318 - - - 10,320 15,253 - - - 547,309 126,166 - - - 308,672 304,728 - - 16,308 16,308 - - 102,808 102,808 99,469 - - 13,559 13,559 18,023 - - 379,419 379,419 48,027 538,325 - - 538,325 381,518 538,325 - 495,786 3,821,265 2,375,907 - 4,323,878 - 4,323,878 4,160,497 - - - 169,893 - - - 888,649 579,717 - - - 2,055,528 479,908 - - - 7,511,116 6,831,159 - - - 10,641,395 9,411,940 - 4,323,878 - 25,420,566 21,633,114 538,325 4,323,878 495,786 29,241,831 24,009,021 3 (This page intentionally left blank) 4 CITY OF DIAMOND BAR Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended June 30, 1997 2,369 972,655 128,508 20,791 105,261 956,442 114,726 321,825 388,667 - 10,320 1,243,375 1,791,980 2,164,939 4,095,518 970,233 2,279,731 450,333 1,270,617 571,074 10,320 11,812,765 2,007,753 4,110,104 1,048,054 2,371,212 312,048 1,127,136 532,559 100,000 4.930 11,613,796 3,734,609 (1,641,334) 3,423,533 2,440,857 Operating transfers in 680,183 - 1,395,305 2,075,488 2,320,976 Operating transfers out (340,034) (2,005,347) - (2,345,381) (2,590,825) Proceeds of advances - - 331,392 331,392 48,027 Total other financing sources (uses) 340,149 2 .005.347) 1,726,697 61,499 (221,822) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,670,407 Fund balances at beginning of year 9,907,004 Fund balances at end of year $11,577,411 1,729,262 General Revenues: Special Taxes $ 5,367,581 Special Assessments - Licenses, permits and fees 1,024,511 Intergovernmental 2,895,609 Fines and forfeits 176,267 Charges for services - Interest 600,844 Other revenues 42,856 Total revenues 10,107,668 Expenditures: Current: 22,059 Generalovernment 2,164,939 Public safety. 4,093,149 Higghway and streets 261,138 Pu lie works 1,192,350 Community development - Parks, recreation and 7,587 culture 1,249,826 Capital outlay Debt 77,146 service: Principal - Interest - Total expenditures 8,777,410 Excess (deficiency) of revenues over (under) expenditures 1,330,258 Other financing sources (uses): 2,369 972,655 128,508 20,791 105,261 956,442 114,726 321,825 388,667 - 10,320 1,243,375 1,791,980 2,164,939 4,095,518 970,233 2,279,731 450,333 1,270,617 571,074 10,320 11,812,765 2,007,753 4,110,104 1,048,054 2,371,212 312,048 1,127,136 532,559 100,000 4.930 11,613,796 3,734,609 (1,641,334) 3,423,533 2,440,857 Operating transfers in 680,183 - 1,395,305 2,075,488 2,320,976 Operating transfers out (340,034) (2,005,347) - (2,345,381) (2,590,825) Proceeds of advances - - 331,392 331,392 48,027 Total other financing sources (uses) 340,149 2 .005.347) 1,726,697 61,499 (221,822) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,670,407 Fund balances at beginning of year 9,907,004 Fund balances at end of year $11,577,411 1,729,262 85,363 Totals Special Capital (Memorandum Only Revenue Projects 139'7--f9Q 384,517 20,208,039 16,723,007 5,367,581 5,236,509 530,375 - 530,375 538,896 271,562 121,000 1,417,073 1,066,475 3,438,347 22,059 6,356,015 5,735,096 176,267 261,138 340,448 - 340,448 301,897 397,252 7,587 1,005,683 863,855 -- 42,856 50.787 4,977,984 150,646 15,236,298 14,054,653 2,369 972,655 128,508 20,791 105,261 956,442 114,726 321,825 388,667 - 10,320 1,243,375 1,791,980 2,164,939 4,095,518 970,233 2,279,731 450,333 1,270,617 571,074 10,320 11,812,765 2,007,753 4,110,104 1,048,054 2,371,212 312,048 1,127,136 532,559 100,000 4.930 11,613,796 3,734,609 (1,641,334) 3,423,533 2,440,857 Operating transfers in 680,183 - 1,395,305 2,075,488 2,320,976 Operating transfers out (340,034) (2,005,347) - (2,345,381) (2,590,825) Proceeds of advances - - 331,392 331,392 48,027 Total other financing sources (uses) 340,149 2 .005.347) 1,726,697 61,499 (221,822) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,670,407 Fund balances at beginning of year 9,907,004 Fund balances at end of year $11,577,411 1,729,262 85,363 3,485,032 2,219,035 6,516,849 299,154 16,723,007 14,503,972 8,246,111 384,517 20,208,039 16,723,007 See accompanying notes to the financial statements. 5 CITY OF DIAMOND BAR Combined Statement of Revenues, Expenditures and Changes in -Fund -Balances -- -Biidgef-and Actual All Governmental Fund Types Year ended June 30, 1997 Revenues: Taxes Special Assessments Licenses, permits and fees Intergovernmental Fines and forfeits Charges for services Interest Other revenues Total revenues Expenditures: Current: Generalgovernment Public safety Hithways and streets Public works Community development Parks, recreation and culture Capital outlay Debt service: Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of advances General Variance Favorable Budget Actual (Unfavorable $ 5,220,000 1,039,560 2,487,500 266,000 504,000 45,890 9,562,950 2,578,902 4,173,785 1,383,925 1,437,724 173,924 9,748,260 (185,310 734,880 (423,525) Total other financing sources (uses) 311,355 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 126,045 5,367,581 1,024,511 2,895,609 176,267 600,844 42,856 10,107,668 2,164,939 4,093,149 1,192,350 1,249,826 77,146 8,777,410 1,330,258 680,183 (340,034) 340,149 1,670,407 Fund balances at beginning of year 9,907,004 9,907,004 Fund balances at end of year $10,033,049 11,.577411 See accompanying notes to the financial statements. 6 147,581 15,049). 08,109 08,109 (89,733) 96,844 (3,034) 544,718 413,963 80,636 191,575 187,898 96,778 970,850 1,515,568 (54,697) 83,491 28,794 1,544,362 1,544362 Special Revenue 41,131 - 18,200 Variance Favorable Budget Actual (Unfavorable) 549,616 530,375(19,241) (32,000) 225,000 271,562 46,562 6,391,445 3,438,347 (2,953,098) 280,500 340,448 59,948 291,750 397,252 105,502 7,738,311 4,977,984 (2,760,327) 43,500 Capital Projects 41,131 - 18,200 Variance Favorable Budget Actual (Unfavorable) 153,000 121,000 (32,000) 20,000 22,059 2,059 - 7,587 7,587 173,000 150,646 (22,354) 43,500 2,369 41,131 - 18,200 791 4,409 3,888,294 1,061, 707 972 ;655 89,052 - 201,565 128,508 73,057 605,320 45,000 20,791 24,209 193,500 105,261 88,239 3,903,204 1,563,472 1,243,375 320,097 8,396,818 6,174,839 (8,468,122) (8,468,122 3,734,609 (2 440,230) (2,005,347) 2 005,347) 6,462,775 6,462,775 (8,223,818) 7,896,768 294,900 8,191,668 956,442 2,931,852 114,726 (114,726) 321,825 283,495 388,667 3,514,537 10,320 (10,320) 1,791,980 6,604,838 (1,641,334) 6,582,484 1,395,305 (6,501,463) 331,392 36,492 1,726,697 (6.464 971 j ! (2,293,283) 1,729,262 4,022,545 (32,150) 85,363 117,513 ii 6,516,849 6,516,849 - 299,154 299,154 - 4,223,566 8,246,111 4,022,545 267,004 384,517 117,513 w mys-Iff CITY OF DIAMOND BAR Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - Proprietary Fund Type Year ended June 30, 1997 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: Operating transfer in Total operating transfers Net income Retained earnings at beginning of year Retained earnings at end of year Internal Service 1997 1996 $163,577 195,287 163,577 195,287 (163,577) 195,287 32,723 25,734 32,723 25,734 (130,854) a62,5 5 3) 269,893 269,849 269,893 269,849 139,039 100,296 749,610 649,314 $888,649 749,610 See accompanying notes to the financial statements. 8 I :11-nadmig CITY OF DIAMOND BAR Combined Statement of Cash Flows - Proprietary Fund Type Year ended June 30, 1997 Internal Service 1997 1996 Cash flows from operating activities: Insurance rebates $ 7,870 Insurance payments - L125 331 Net cash provided by (used for) operating activities 7,870 (195.331) Cash flows from noncapital financing activities: Transfer from other fund 269,893 269,849 Net cash provided by noncapital financing activities 269,893 269,849 Cash flows from investing activities: Interest earned on investments 32,723 25,734 Net cash provided by investing activities 32,723 25,734 Net increase (decrease) in cash and cash equivalents 310,486 100,252 Cash and cash equivalents at beginning of year 579,717 479,465 Cash and cash equivalents at end of year $890,203 579,717 Reconciliation of net operating income to net cash provided by (used for) operating activities: Operating income (loss) (163,577) (195,287) Adjustments to reconcile operating income to net cash provided by (used for) operating activities: (Increase) decrease in prepaid insurance 169,893 (44) (Decrease) increase in accounts payable 1,554 - Net cash provided by (used for) operating activities $ 7,870 (195,331) See accompanying notes to the financial statements. 9 (This page intentionally left blank) 10 WVWALIJ at] RAIUV 16114610 Notes to the Financial Statements Year ended June 30, 1997 (1) Summary of Significant Accounting Policies (a) Description of the ReportingEntity 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 onthatorganization 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: 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. 11 Notes to the Financial Statements (Continued) (1) SummM 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. 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: 12 Notes to the Financial Statements (Continued) (1) Surm M of Significant Accounting Policies, (Continued) 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 the general fixed assets account group at their estimated fair market value when received. Fixed assets acquired under a capital lease are recorded at the net present value of the future minimum 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. No depreciation has been provided on general fixed assets. General Long -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. 13 Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies (Continued) (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. 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. 14 Notes to the Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (d) Budgets. yrY 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 less than $10,000 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 $1,623,200. (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. (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 both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City of Diamond Bar. 15 IN I • M 01 GINT, •\I I'D I I Notes to the Financial Statements (Continued) SummM of Significant Accounting Policies, (Continued) (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, 1997. 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. 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 postemployment benefits (other than pension benefits) for its employee& (n) Propegy 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. 16 Notes to the Financial Statements (Continued) (1) ' SummM of Significant Accounting Policies, (Continued) (n) (o) Property Taxes (Continued) The property tax calendar is as follows: Lien Date: Levy Date: Due Date: Delinquent Date: March 1 July 1 First Installment - November 1 Second Installment - February 1 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 January 16. April 10 May 15 July 31 Fixed Assets 30% Advance Collection No. 1 10% Advance Collection No. 2 Collection No. 3 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. 17 Notes to the Financial Statements (Continued) (1) Summaa of Significant Accounting Policies (Continued) (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. (c) Memorandum OnlyTotals 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. Interfand balances and transactions have not been eliminated and the columns do not present consolidated financial information. (2) Cash and Investments Cash and investments held by the City at June 30, 1997 consisted of the following: Imprest cash on hand Demand deposits State Treasurer's investment pool Deferred compensation mutual funds Money market mutual fund Total 18 C ing Amount $ 275 330,584 19,948,195 538,325 800,577 $21,617,956 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (2) 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. 19 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (2) 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, 1997 are classified in risk categories as follows: Investments held by the City as of June 30, 1997 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 $19;948,195 20,031,978 Investment in deferred compensation mutual funds 538,325 538,325 Money market mutual fund 800,577 800,577 Total investments $21,287,097 21,370,880 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, 1997 the carrying amount (at amortized cost) of the pool was $28,515,398,747 and the estimated market value of the pool (including accrued interest) was $28,637,448,331. The City's proportionate share of the pool's market value (as determined by LAIF) as of June 30, 1997 was $20,031,978. 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 Lissued by federal agencies, government- sponsored enterprises, and corporations. 20 Category Bank Carrying Form of Deposit 1 2 3 Balance Amount Demand deposits $100,000 282,335 — 382,335 330,584 Total deposits J1Q,0000 282,335 - 382,335 330,584 Investments held by the City as of June 30, 1997 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 $19;948,195 20,031,978 Investment in deferred compensation mutual funds 538,325 538,325 Money market mutual fund 800,577 800,577 Total investments $21,287,097 21,370,880 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, 1997 the carrying amount (at amortized cost) of the pool was $28,515,398,747 and the estimated market value of the pool (including accrued interest) was $28,637,448,331. The City's proportionate share of the pool's market value (as determined by LAIF) as of June 30, 1997 was $20,031,978. 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 Lissued by federal agencies, government- sponsored enterprises, and corporations. 20 Notes to the Financial Statements (Continued) (3) Fixed Assets A summary of changes in general fixed assets follows: (4) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 1997 were as follows: Balance at . Balance at July 1, 1996 Additions Retirements June 30, 1997 City: Compensated absences payable $ 99,469 3,339 - 102,808 Obligations under capital lease 18,023 - 4,464 13,559 Redevelopment Agency: Advances from other funds 48,027 331,392 - 379,419 Total 165 519 334.,731 4,464, 495,786 5) Obligations Under Capital Lease Telephone Svstem 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 $15,872 including $2,313 in interest. 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. 21 Balance at Balance at July 1, 1996 Additions Retirements June 30, 1997 Land $1,969,899 - 1,969,899 Buildings 859,345 - 859,345 Improvements other than buildings 579,301 - - 579,301 Vehicles and equipment 565,227 161,446 - 726,673 Furniture and fixtures 186,725 1,935 188,660 Total $4,160,497 163,.381 4,323,878 (4) General Long -Term Debt Changes in general long-term debt for the year ended June 30, 1997 were as follows: Balance at . Balance at July 1, 1996 Additions Retirements June 30, 1997 City: Compensated absences payable $ 99,469 3,339 - 102,808 Obligations under capital lease 18,023 - 4,464 13,559 Redevelopment Agency: Advances from other funds 48,027 331,392 - 379,419 Total 165 519 334.,731 4,464, 495,786 5) Obligations Under Capital Lease Telephone Svstem 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 $15,872 including $2,313 in interest. 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. 21 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (5) Obligations Under Capital Lease (Continued) The future minimum lease obligations and the net present value of the minimum lease payments as of June 30, 1997 were as follows: Year Ending June 30 1998 $ 5,601 1999 5,601 2000 4,670 Total minimum lease payments 15,872 Less amount representing interest J2 313) Present value of minimum lease payments J13.,559 (6) Advances From/to Other Funds During the fiscal year ended June 30, 1997, the General Fund advanced $331,392 to the Redevelopment Agency Capital Projects Fund for various start up costs. The following represents a summary of these transactions: Balances at Balances at July 1, 1996 Proceeds Repayments June 30, 1997 Agency expenditures incurred by the City $48,027 331,392 379,419 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. 22 Notes to the Financial Statements (Continued) (7) Obligations Under Operating Leases The City leases building and office facilities under noncancelable operating leases. The total costs for such leases were $206,301 for the year ended June 30, 1997. The future minimum lease payments for these leases are as follows: Year ending June 30 City Hall Parks and Recreation Total 1998 $139,095 15,534 154,629 1999 147,525 3,884 151,409 2000 155,955 - 155,955 Total 1442,575 19,418 461,993 (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, 1997 consisted of the following reserves and designations: Special Capital Total General Fund Revenue Projects (Memorandum Only) Reserved for: Debt service $ 13,559 - - 13,559 Encumbrances 429,322 1,134,228 - 1,563,550 Contingencies - 99,000 - 99,000 Advances to the Diamond Bar Redevelopment Agency 379,419 - 379,419 822,300 1,233,228 2,055,528 Unreserved: Designated for: Specific projects and programs 113,716 7,012,883 384,517 7,511,116 Undesignated 10,641,395 - - 10,641,395 10,755,111 7,012,883 -384,517 18,152,511 Total fund balance $11,577,411 8,246,111 384,517 20,208,039 23 Notes to the Financial Statements (Continued) (9) 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, 1997, the deferred compensation liability included in an Agency Fund was $538,325 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. (10) 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 for employees covered by PERS for the year ended June 30, 1997 was $1,361,072. The total payroll for the year was $1,460,555. 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 24 7% Notes to the Financial Statements (Continued) (10) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued) The City is required to contribute the remaining amounts necessary to Rind 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, 1997 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. 25 CITY OF DIAMOND BAR Notes to the FinancialStatements (Continued) (10) City Employees Retirement Plan (refined Benefit Pension Plan), (Continued) Funding Status and Progress, (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. 26 Notes to the Financial Statements (Continued) (10) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued) Funding Status and Progress, (Continued) 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. The significant actuarial assumptions 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 Payroll Normal cost $170,235 13.37% Amortization of unfunded (overfunded) actuarial accrued liability 777) (.06)% Total contribution $169458 13.31% Contribution: Employer $ 80,303 6.31% Employee 89,155 7.00% Total contribution $169458 13.31% 27 CITY OF DIAMOND BAR Notes to the Financial Statements (Continued) (10) City Employees Retirement Plan (Defined Benefit Pension Plan), (Continued) 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. 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, 1997 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: 28 (6) (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 Mm 2 2 - 1 Payroll f4)AQ 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) 28 • 1 CA kyj M ON 111 ..: Notes to the Financial Statements (Continued) (11) Due From and To Other Funds Variance $577,200 582,879 Current interfund receivables and payables balances at June 30, 1997 are as follows: - 3,352 Current Current (4,342) Interfund Interfand Receivables Payables General fund $441,420 68,060 Special revenue funds: Safe parks - 204,689 Intermodal surface transportation efficiency act - 183,878 Community development block grant - 90,682 Capital projects funds: Capital improvement 37,829 - Redevelopment agency 68,060 - Total $547,309 547,309 (12) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 1997 exceeded the appropriations of the following funds: Special revenue funds: Proposition A transit Asset seizure Capital projects funds: Redevelopment agency 13) Risk Management - Coverage Budget Actual Variance $577,200 582,879 (5,679) - 3,352 (3,352) 327,050 331,392 (4,342) The City participates in the California Joint Powers Insurance Authority (CJPIA). 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. 29 Notes to the Financial Statements (Continued) (13) Risk Management - Coverage (Continued) The membership of CJPIA consists of approximately 79 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 CJPIA 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. The City also has a policy for worker's compensation insurance with the State Compensation Insurance Fund, which insures the City for a maximum of $1,000,000 per occurrence. Any amounts exceeding $1,000,000 per occurrence are to be funded by the City's self-insurance fund. The City is required to pay insurance premiums each year based on gross payroll and past claims experience. (14) 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. (15) Proposition 218 Proposition 218, which was approved by the voters in November 1996, provides certain limitations over the ability of local governments within the State of California to impose, increase and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may, in some circumstances, be rescinded in the future by the voters. As a result, the government's ability to finance the services for which the taxes, assessments and fees were imposed could be significantly impaired. Significant taxes, fees, and assessments that may be subject to the provisions of Proposition 218 which the government currently imposes for its own benefit or as an agent for a special district, or receives from other governmental agencies, potentially include business license fees, lighting and landscape district assessments, and street -sweeping assessments. The City's management believes that language in the initiative is unclear as to the scope and impact of the proposition. Future court rulings or state legislation may clarify these issues. At this time management is uncertain as to the effect that Proposition 218 will have on the government's ability to maintain or increase the revenue it receives from taxes, assessments and fees, or its effect 30 I I'M 0 ._Uto)UN II .6y.11 Notes to the Financial Statements (Continued) (15) Proposition 218, (Continued) on interfund payments in lieu of taxes and transfers of surplus funds from enterprise funds to the general fund. Also unclear is the extent to which Proposition 218 is impacted by a 1995 California Supreme Court ruling (the GlIardino case) that upheld the voter approval requirements of a previously enacted state initiative (Proposition 62), particularly with regard to taxes imposed or increased between November 5, 1986 and December 11, 1995. 31 (This page intentionally left blank) 32 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. 33 CITY OF DIAMOND BAR General Fund Comparative Balance Sheets June 30, 1997 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 eaui Liabilities: Accounts payable Accrued payroll 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 34 1997 $11,303,329 114,327 280,792 441,420 730,103 379,419 $13,249,390 $ 1,197,373 87,554 10,320 68,060 308.672 1,671,979 13,559 429,322 379,419 113,716 10,641,395 11,577,411 $13,249,390 1996 10,256,977 66,536 232,688 102,055 677,620 48,027 11,383,903 1,055,367 72,832 15,253 28,719 304.728 1,476,899 117,492 140,836 48,027 181,825 9,418,824 9,907,004 11,383,903 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, 1997 and 1996 35 1997 1996 Revenues: Taxes $ 5,367,581 5,236,509 Licenses, permits and fees 1,024,511 919,942 Intergovernmental 2,895,609 2,759,635 Fines and forfeits 176,267 261,138 Interest 600,844 507,613 Other revenues 42,856 46,556 Total revenues 10,107,668 9,731,393 Expenditures: Current: General government 2,164,939 2,007,753 Public safety 4,093,149 4,110,104 Public works 1,192,350 1,136,885 Parks, recreation and culture 1,249,826 1,102,053 Capital outlay 77,146 89,637 Total expenditures 8,777,410 8,446,432 Excess (deficiency) of revenues over (under) expenditures 1,330,258 1,284,961 Other financing sources (uses): Operating transfers in 680,183 633,450 Operating transfers out (340,034) (386,879) Total other financing sources (uses) 340,149 246,571 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,670,407 1,531,532 Fund balances at beginning of year 9,907,004 8,375,472 Fund balances at end of year $11,577,411 9,907,004 35 CITY OF DIAMOND BAR General Fund Revenue Detail - Budget and Actual Year ended June 30, 1997 Intergovernmental: Motor vehicle in lieu tax 2,451,000 2,848,769 Variance - 2,712,513 Homeowners exemption 30,000 1997 Favorable 1996 Off highway tax Budget Actual (Unfavorable) Actual Taxes: 5,000 9,294 4,294 15,275 Real estate transfer tax $ 120,000 155,620 35,620 124,060 Sales and use tax 2,200,000 2,337,941 137,941 2,340,848 Franchise fees 650,000 638,541 (11,459) 654,805 Transient occupancy tax 210,000 311,280 101,280 227,537 Property tax allocation 2,040,000 1,924,199(115801) 1,889,259 Total taxes 5,220,000 5,367,581 147,581 5,236,509 Licenses, permits and fees _ 1,039,560 _ 1,024,511 -(1,5049) 919,942 Intergovernmental: Motor vehicle in lieu tax 2,451,000 2,848,769 397,769 2,712,513 Homeowners exemption 30,000 36,382 6,382 30,673 Off highway tax 1,500 1,164 (336) 1,174 Grants 5,000 9,294 4,294 15,275 Total intergovernmental 2,487,500 2,895,609 408,109 2,759,635 Fines and forfeits 266,000 176,267 89 733) 261,138 Interest 504,000 600,844 96,844 507,613 Other revenues: Rental income 25,000 17,453 (7,547) 26,239 Donations 1,390 1,590 200 1,260 Miscellaneous 19,500 23,813 4,313 19,057 Total other revenues 45,890 42,856 -IL034 46,556 Total revenues $9,562,950 10,107,668 544,718 9,731,393 36 • CITY OF DIAMOND BAR General Fund Expenditure Detail - Budget and Actual Year ended June 30, 1997 r 37 Variance - 1997 Favorable 1996 Budget Actual (Unfavorable) Actual General government: City Council $ 123,050 105,335 17,715 92,301 City Manager 442,480 474,458 (31,978) 426,259 City Clerk 246,251 218,162 28,089 265,557 Finance 241,170 225,304 15,866 205,979 City Attorney 150,000 110,861 39,139 108,461 Planning 574,151 451,789 122,362 393,458 Economic development 125,010 57,763 67,247 57,552 General government 494,460 376,616 117,844 357,868 Promotion 144,430 116,566 27,864 100,318 Community Service Center 37,900 28,085 9,815 - Total general government 2,578,902 2,164,939 413,963 2,007,753 Public safety: Law enforcement 3,809,755 3,749,325 60,430 3,824,357 Fire 7,530 7,359 171 - Building and safety 264,000 261,451 2,549 213,659 Aminal control 662650 66,610 40 62,510 Emergency preparation 25,850 8,404 17,446 9,578 Total public safety 4,173,785 4,093,149 80,636 4,110,104 Public works 1,383,925 1,192,350 191,575 1,136,885 Parks, recreation, and culture 1,437,724 1,249,826 187,898 1,102,053 Capital outlay 173,924 77,146 96,778 89,637 Total expenditures $9,748,260 8,777,410 970,850 8,446,432 r 37 (This page intentionally left blank.) 38 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. The City of Diamond Bar has thirteen Special Revenue Funds: State Gas Tax Fund - To account for state gasoline taxes received under Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highways Code. State law requires that these revenues be utilized solely for street related purposes. Proposition A Transit Fund - To account for the receipt and expenditure of the City's share of the %2 cent sales tax levied in Los Angeles County for local transit purposes. Proposition C Transit Fund - To account for the receipt and expenditure of Proposition C funds from the Los Angeles County Metropolitan Transportation Authority for the City's transit and transit -related improvement projects. Intermodal Surface Transportation Efficiency Act (ISTEA) Fund - To account for the receipt and disbursement of funds received under the Federal Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 program. This program restructured the Federal -Aid Highway Program and revenues are awarded to local agencies by the Orange County Transportation Authority and/or the State of California Department of Transportation. Integrated Waste Management Fund - To account for revenues and expenditures related to the City's waste reduction efforts as related to AB939. Air Quality Improvement Fund - To account for motor vehicle registration fees received from the South Coast Air Quality Management District to reduce air pollution from motor vehicles pursuant to the California Clean Air Act of 1988. Bicycle and Pedestrian Fund - To account for revenues and expenditures related to the receipt of state funds allocated for the purpose of the construction of bike and pedestrian paths. Park Fees Fund - To account for revenues received and expenditures made for park development and improvement. The primary source of revenue is park development fees collected from developers under the State of California's Quimby Act. 1 Proposition A Safe Parks Fund - To account for funds received and expended as a result of the approval of the Los Angeles County Safe Neighborhood Parks Act passed in 1992. This Act provides funds to cities to improve, preserve, and restore parks. Community Development Block Grant Fund - To account for the City's allotment of CDBG funds from the federal government via the County of Los Angeles Community Development Commission. These funds are used to fund community development programs and projects benefiting low and moderate income citizens. Citizens Option for Public Safely Fund (COPS) - To account for COPS grants received from both the state and federal government. The purpose of these funds are to enhance the City's public safety budget and to fund special public safety related projects. 39 SPECIAL REVENUE FUNDS, (CONTINUED) Asset Seizure Fund - To account for Narcotics Asset Forfeiture funds received from the federal government. It is required that these funds be used to enhance drug and law enforcement activities. Landscape Maintenance Districts Funds - To account for revenues and expenditures related to the special property tax assessments which v3ere set up in accordance with the Landscape and Lighting Act of 1972. The purpose of these districts is to improve the landscaping of City owned medians and hillsides. 40 (This page intentionally left blank) 41 CITY OF DIAMOND BAR Special Revenue Funds Combining Balance Sheet June 30, 1997 42 Integrated Bicycle State Prop A Prop C Waste Air Quality and Gas Tax Transit Transit ISTEA Management Improvement Pedestrian Assets Cash and investments $2,483,862 1,765,605 1,999,045 - 127,059 103,859 27,682 Accounts receivable - - - - 13,148 - - Due from other governments 102,779 51,401 43,454 183.878 13,730 14,200 Total assets $2,586,641 1,817,006 2.042,499 183,878 153,937 118.059 27.682 Liabilities and fund balances Liabilities: Accounts payable $ - 61,189 - - 11,726 1,504 - Accrued payroll - 532 - - 937 551 - Due to other funds - - - 183,878 - - _ Due to other governments Total liabilities 61,721 - 183.878 12,663 2,055 16,308 Fund balances: Reserved for: Encumbrances 638,067 - 348,649 - 6,383 884 - Contingencies 59,500 - 39,500 - - Unreserved: Designated for: Specific projects and programs 1,889,074 1,755,285 1,654,350 - 134,891 115,120 11,374 Undesignated Total fund balances 2,586,641 1,755.285 2,042,499 - 141,274 116,004 11,374 Total liabilities and fund balances $2,586,641 1,817.006 2,042,499 183,878 153.937 118.059 27,682 42 EXHIBIT B-1 130,000 - - 428,929 - - 558,929 558,929 204,689 102,335 10,245 1,134,228 78,554 - 99,000 - 134,590 300,571 588,699 7,012,883 6,445,179 (6,884) 134,590 300,571 598,944 8,246,111 6,516,849 134,626 303,923 641,252 8,875,456 6,751,853 43 Community Landscape Park Prop A Development Asset Maintenance Totals Fees Safe Parks Block Grant COPS Seizure Districts 1997 1996 558,929 - - 134,626 303,923 618,605 8,123,195 6,323,071 - - - - - - 13,148 18,154 204,689 102,335 22,647 739,113 410,628 558,929 204,689 102,335 134,626 303,923 641,252 8,875,456 6,751,853 - - 10,223 36 3,352 41,729 129,759 118,212 - - 1,430 - - 579 4,029 3,037 - 204,689 90,682 - - - 479,249 97,447 - - - 16,308 16,308 - 204,689 102,335 36 3,352 42,308 629,345 235,004 130,000 - - 428,929 - - 558,929 558,929 204,689 102,335 10,245 1,134,228 78,554 - 99,000 - 134,590 300,571 588,699 7,012,883 6,445,179 (6,884) 134,590 300,571 598,944 8,246,111 6,516,849 134,626 303,923 641,252 8,875,456 6,751,853 43 CITY OF DIAMOND BAR Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1997 44 Integrated Bicycle State Prop A Prop C Waste Air Quality and Gas Tax Transit Transit ISTEA Management Improvement Pedestrian Revenues: Special Assessments $ II Licenses, permits and fees Intergovernmental 1,279,625 583,759 458,792 183,878 15,265 58,638 l Charges for services - 265,134 - - 75,314 - - Interest 140,680 89,452 98,413 - 6,096 6,394 f 1,418 I Other revenues Total revenues 1,420,305 938,345 557,205 183,878 96,675 65,032 1,418 Expenditures: Current: t Public safety - - _ _ _ _ _ Highways and streets - 13,791 - - _ Public works - 548,297 - - 74,946 - Community development - - - - - 38,404 - Parks, recreation and culture - 20,791 - - - _ (l Capital outlay - - - 39,004 Total expenditures 582,879 - 74,946 77,408 f Excess (deficiency) of revenues over (under) expenditures 1,420,305 355,466 557,205 183,878 21,729 (12,376 1,418 Other financing sources (uses): Operating transfers out (1,331,491 (50,000 103,943 (183,878 Total other financing sources (uses) (1,331,491 (50,000 (103,943 (183,878 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 88,814 305,466 453,262 - 21,729 (12,376) 1,418 Fund balances at beginning of year 2,497,827 1,449,819 1,589,237 119,545 128,380 9,956 Fund balances at end of year $2,586,641 1,755,285 2,042,499 - 141,274 116.004 11,374 44 EXHIBIT B-2 90,104 1.127 91.231 290,513 221,011 54,131 (47,891 (221,011 (54,131 (47,891 (221,011 54.131 242,622 - - 316,307 558,929 2,369 - - 2,369 - Community 33,855 - - 349,412 972,655 Landscape - - - 128,508 153,488 Park Prop A Development 2,058 Asset Maintenance Totals Fees Safe Parks Block Grant COPS Seizure Districts 1997 1996 - - - - - 530,375 530,375 538,896 271,562 - - - - - 271,562 64,475 - 221,011 145,362 192,194 299,823 - 3,438,347 2,975,461 - - - - - - 340,448 301,897 18,951 - - 6,543 4,100 25,205 397,252 348,587 - - 4,231 290,513 221,011 145,362 198,737 303,923 555,580 4,977,984 4,233,547 90,104 1.127 91.231 290,513 221,011 54,131 (47,891 (221,011 (54,131 (47,891 (221,011 54.131 242,622 - - 316,307 558,929 2,369 - - 2,369 - - - - 13,791, 33,855 - - 349,412 972,655 896,255 - - - 128,508 153,488 - - - 20,791 25,083 61,778 3,352 - 105,261 2,058 64,147 3,352 349,412 1,243,375 1,110,739 134,590 300,571 206,168 3,734,609 3,122,808 (13,002 2 005,347 2,203 946 _ (13,002 (2,005,347 2,203 946 134,590 300,571 193,166 405,778 134,590 300,571 598,944 45 1,729,262 918,862 6,516,849 5,597,987 8,246,111 6,516,849 CITY OF DIAMOND BAR State Gas Tax Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 Variance Favorable Budget Actual (UnfavorabDe Revenues: Intergovernmental $1,275,950 1,279,625 3,675 Interest 110,000 140,680 30,680 Total revenues 1,385,950 1,420,305 34,355 Excess (deficiency) of revenues over (under) expenditures 1,385,950 1,420,305 34,355 Other financing sources (uses): Operating transfers out 2 903 712) (1,331,491) 1,572,221 Total other financing sources (uses) f2., 903 712) (1,331,491) 1,572,221 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (1,517,762) 88,814 1,606,576 Fund balances at beginning of year 2,497,827 2,497,827 - Fund balances at end of year $ 980,065 2,586,641 1,606,576 46 CITY OF DIAMOND BAR Proposition A Transit Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 Revenues: Intergovernmental Charges for services Interest Total revenues Expenditures: Current: Highways and streets Public works Parks, recreation and culture Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Operating transfers out 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 197,070 305,466 108,396 1,449,819 1,449,819 $1,646,889 1,.755285 108,.396 47 Variance Favorable Budget Actual (Unfavorable $ 614,270 583,759 (30,51.1) 215,000 265,134 50,134 65,000 89,452 24,452 894,270 938,345 44,075 18,200 13,791 4,409 514,000 548,297 (34,297) 45,000 20,791 24,209 577,200 582,879 --(5,679) 317,070 355,466 38,396 120 000--(50-10-0-0) 70,000 —E20-1.0-00) 50 000)70,000 197,070 305,466 108,396 1,449,819 1,449,819 $1,646,889 1,.755285 108,.396 47 I'rMIIC� C � CITY OF DIAMOND BAR Proposition C Transit Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 48 Variance Favorable Budget Actual (Unfavorable) Revenues: Intergovernmental $ 510,800 458,792 (52,008) Interest 60,000 98,413 38,413 Total revenues 570,800 _ 557,205 13 595) Excess (deficiency) of revenues over (under) expenditures 570,800 557,205 —(11595) Other financing sources (uses) Operating transfers out LL2L7.176 103 943) 1,283,233 Total other financing sources (uses) 1 387,176) 103 943) 1,283,233 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (816,376) 453,262 1,269,638 Fund balances at beginning of year 1,589,237 1,589,237 - Fund balances at end of year 772 861 2,042,499 1269,638 48 49 EXHIBIT B-6 CITY OF DIAMOND BAR ISTEA Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorable Revenues: Intergovernmental $1,000,000 183,878 (816,122) Total revenues 1,000,000 183,878 (816,122) Excess (deficiency) of revenues over (under) expenditures 1,000,000 183,878 (816,122) Other financing sources (uses): Operating transfers out a-901000 (183 878 816,122 Total other financing sources (uses) f1 000=000) 183 878) 816,122 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 49 I M114 so I 1 1001 a on CITY OF DIAMOND BAR Integrated Waste Management Fund Statement•of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 50 Variance Favorable Budget Actual LUnfavorablp" Revenues: Intergovernmental $ 18,600 15,265 (3,335) Charges for services 65,500 75,314 9,814 Interest 1,500 6,096 4,596 Total revenues 85,600 96,675 11,075 Expenditures: Current: Public works 98,467 74,946 23,521 Total expenditures 98,467 74,946 23,521 Excess (deficiency) of revenues over (under) expenditures (12,867) 21,729 34,596 Fund balances at beginning of year 119,545 119,545 Fund balances at end of year $106,678 141,274 34.,596 50 51 EXHIBIT B-8 CITY OF DIAMOND BAR Air Quality Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual i I Year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorablel Revenues: Intergovernmental $ 45,000 58,638 13,638 Interest 6,500 6,394 106 j Total revenues 51,500 65,032 13,532 Expenditures: Current: Community development 61,300 38,404 22,896 Capital outlay 43,500 39,004 4,496 Total expenditures 104,800 77,408 27,392 Excess (deficiency) of revenues over (under) expenditures (53,300) (12,376) 40,924 Fund balances at beginning of year 128,380 128,380 - Fund balances at end of year $ 75,080 116,004 40,924 51 IWN I I I C V C 4 CITY OF DIAMOND BAR Bicycle and Pedestrian Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorable) Revenues: Interest $ 23,450 1,418(22,032) Total revenues 23,450 1,418 (22,032) Excess (deficiency) of revenues over (under) expenditures 23,450 1,418 (22,032) Other financing sources (uses): Operating transfers out 52 000) - 52,000 Total other financing sources (uses) (52,000) - 52,000 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (28,550) 1,418 29,968 Fund balances at beginning of year 9,956 9,956 - Fund balances (deficit) at end of year 1(1&594) 594) 11,374 29,968 52 CITY OF DIAMOND BAR Park Fees Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 53' Variance Favorable CUnfavorable� 46,562 (1,049) 45,513 45,513 600,189 600,189 645,702 645,702 Budget Actual Revenues: Licenses, permits and fees $225,000 271,562 Interest 20,000 18,951 Total revenues 245,000 290,513 Excess (deficiency) of revenues over (under) expenditures 245,000 290,513 Other financing sources (uses): Operating transfers out f64&080)891) 891) Total other financing sources (uses)f64&080) 47 891 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (403,080) 242,622 Fund balances at beginning of year 316,307 316,307 Fund balances (deficit) at end of year $ M.,7 7 J3 558,929 53' Variance Favorable CUnfavorable� 46,562 (1,049) 45,513 45,513 600,189 600,189 645,702 645,702 t� CITY OF DIAMOND BAR Proposition A Safe Parks Fund Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Year ended June 30, 1997 54 Variance Favorable Budget Actual (Unfavorable) Revenues: Intergovernmental $1,919,000 221,011 (L697 989) Total revenues 1,919,000 221,011 (1,697,989) Excess (deficiency) of revenues over (under) expenditures 1,919,000 221,011 (1,697,989) Other financing sources (uses): Operating transfers out LL2L5-.,884) 884) (221,011) 1,704,873 Total other financing sources (uses) (1,925,884) (221,011) 1,704,873 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (6,884) - 6,884 Fund balances at beginning of year - - - Fund balances (deficit) at end of year $(6,884) - 6,884 54 EXHIBIT B-12 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, 1997 55 Variance Favorable Budget Actual (Unfavorable) Revenues: Intergovernmental $515,800 145,362 370 438) Total revenues 515,800 145,362 QjQ,43 8 Expenditures: Current: Community development 140,265 90,104 50,161 Capital outlay 1,300 1,127 173 Total expenditures 141,565 91,231 50,334 Excess (deficiency) of revenues over (under) expenditures 374,235 54,131 (320,104) Other financing sources (uses): Operating transfers out(381,270 _(54.13 1) 327,139 Total other financing sources (uses)_(IU..,270) 54 131 327,139 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (7,035) 7,035 Fund balances at beginning of year - Fund balances (deficit) at end of year LIL035) 7,035 55 EXHIBIT B-13 CITY OF DIAMOND BAR COPS Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 Variance Favorable Budget Actual (Unfavorable Revenues: Intergovernmental $192,200 192,194 (6) Interest - 6,543 6,543 Total revenues 192,200 198,737 6,537 Expenditures: Current: Public safety 43,500 2,369 41,131 Capital outlay 148,700 61,778 86,922 Total expenditures 192,200 64.,147 128,053 Excess (deficiency) of revenues over (under) expenditures - 134,590 134,590 Fund balances at beginning of year - - Fund balances at end of year $ 134,590 134,590 56 57 EXHIBIT B-14 CITY OF DIAMOND BAR. Asset Seizure Fund Statement of Revenues, Expenditures and Changes in Fund Balances - i Budget and Actual i Year ended June 30, 1997 Variance Favorable Budget Actual ,Unfavorable) Revenues: Intergovernmental $299,825 299,823 (2) Interest - 4,100 4,100 Total revenues 299,825 303,923 4,098 Expenditures: Capital outlay - 3,352 3 352) Total expenditures - 3,352 Q. Excess (deficiency) of revenues over (under) expenditures 299,825 300,571 746 Fund balances at beginning of year - - - Fund balances at end of year $299,825 300,571 746 57 CITY OF DIAMOND BAR Landscape Maintenance Districts Funds Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 Revenues: Special assessments Interest Total revenues Expenditures: Current: Public works Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers out 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 58 Variance Favorable Budget Actual (Unfavorable) $549,616. 530,375(19,241) 5,300 25,205 19,905 554,916 555,580 664 449,240 349,412 99,828 449,240 349,412 99,828 105,676 206,168 100,492 -f 50 000111002) 36,998 -i50 -0-0-0) 111002) 36,998 55,676 193,166 137,490 f. 405,778 405,778 14E-,454 598,944 137,490 58 •' "•JUGIM 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. i 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 interfund transfers from the Special Revenue Funds and the General Fund. Redevelopment Agency Fund - To account for general fund monies transferred to the Redevelopment Agency for approved capital projects and administrative costs. 59 EXHIBIT C-1 CITY OF DIAMOND BAR Capital Projects Funds Combining Balance Sheet June 30, 1997 Grand Avenue Capital Redevelopment Totals Construction Improvement Agency 1997 ` 1996 Assets Cash and investments $139,131 Due from other funds - Total assets $139,131 Liabilities and fund balances Liabilities: Accounts payable $ - Accrued payroll - Retentions payable - Total liabilities - Fund balances: Reserved for: Encumbrances - Unreserved: Designated for: Specific projects 623,773 - 762,904 392,010 37,829 68,060 105,889 24,111 661,602 68,060 868,793 416,121 357,220 68,060 425,280 98,422 621 - 621 227 58,375 - 58,375 18,318 416,216 68,060 484,276 116,967 94,999 and programs 139,131 245,386 - 384,517 204,155 Total fund balances 139,131 245,386 - 384,517 299,154 Total liabilities and fund balances JiaE131 661,602 68,060 868,793 416,121 60 Im"11:300M CITY OF DIAMOND BAR Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year ended June 30, 1997 Grand Avenue Capital Redevelopment Totals Construction Improvement Agency 1997 1996 Revenues: Licenses, permits and fees Intergovernmental Interest Total revenues Expenditures: Current: HiRhways and streets - Public works - Community development - Ca ital outlay - Debt service: Principal - Interest Total expenditures - Excess (deficiency) of revenues over (under) expenditures - Other financing sources (uses): Operating transfers in - Proceeds of advances - 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 139,131 160,023 Fund balances at end of year $139,131 245,386 121,000 - 121,000 82,058 22,059 - 22,059 - 7,587 - 7,587 7,655 150,646 - -- - 150,646 89,713 956,442 - 956,442 1,014,199 114,726 - 114,726 338,072 753 321,072 321,825 158,560 388,667 388,667 440,864 - - 100,000 - 10,320 10,320 4,930 1,460,588 331,392 1,791,980 2,056,625 (1,309,942)(331,392) (1.641.334 (1,966 912) 1,395,305 1,395,305- 85,363 61 - 1,395,305 1,687,526 331,392 331,392 48,027 331,392 1,726,697 1,735,553 85,363 (231,359) 299,154 530,513 384,517 299,154 EXHIBIT C-3 CITY OF DIAMOND BAR Grand Avenue Construction Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 62 Variance Favorable Bu_ dget Actual aUnfavorable) Expenditures: Current: . Highways and streets $ 18,600 - 18,600 Total expenditures 18 600 - 18,600 Excess (deficiency) of revenues over (under) expenditures (18,600) - 18,600 Other financing sources (uses): Operating transfers in 18,600 - 18 600) Total other financing sources (uses) 18,600 - (18,600) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - _ _ Fund balances at beginning of year 139,131 139,131 Fund balances at end of year JIIE131 139,131 - 62 EXHIBIT C-4 CITY OF DIAMOND BAR Capital Improvement Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 63 Variance Favorable (Unfavorable) (32,000) 2,059 7,587 (22,354) 2,913,252 (114,726) 277,517 3.514.537 6,590,580 6,568,226 ffi4L2.863) (6,482,863) 85,363 85,363 Budget Actual Revenues: Licenses, pen -nits and fees $ -153,000 121,000 Intergovernmental 20,000 22,059 Interest - 7,587 Total revenues 173,000 150,646 Expenditures: Current: Highways and streets 3,869,694 956,442 Public works - 114,726 Community development 278,270 753 Capital outlay 3,903,204 388,667 Total expenditures 8,051,168 1,460,588 Excess (deficiency) of revenues over (under) expenditures (7,878,168) (1,309.,942) Other financing sources (uses): Operating transfers in 7,878,168 1,395,305 Total other financing sources (uses) 7,878,168 1,395,305 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - 85,363 Fund balances at beginning of year 160,023 160,023 Fund balances at end of year $ 160.,023 245,.386 63 Variance Favorable (Unfavorable) (32,000) 2,059 7,587 (22,354) 2,913,252 (114,726) 277,517 3.514.537 6,590,580 6,568,226 ffi4L2.863) (6,482,863) 85,363 85,363 EXHIBIT C-5 CITY OF DIAMOND BAR Redevelopment Agency Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year ended June 30, 1997 64 Variance Favorable Budget Actual (Unfavorable)Expenditures: Current: Community development $327,050 321,072 5,978 Debt service: Interest - 10,320 (10,320) Total expenditures 327,050 331,392 (4,342) Excess (deficiency) of revenues over (under) expenditures -(22Z,050 331392)342 (4 4,,342 Other financing sources (uses): Proceeds of advances from the City 294,200 331,392 37,192 Total other financing sources (uses) 294,200 331,392 37,192 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 32,850 32,850 Fund balances at beginning of year - Fund balances at end of year $ 32,850 32,850 64 AGENCY FUND 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. 65 EXHIBIT D-1 CITY OF DIAMOND BAR Agency Fund Statement of Changes in Assets and Liabilities Year ended June 3 0, 1997 Balance at Balance at July 1, 1996 Additions Deductions June 30, 1997 Deferred Compensation Fund Assets Cash and investments $381,518 165,598 8,791 538,325 Liabilities Deferred compensation payable $381,518 165,598 8,791 538,325 66 GENERAL FIXED ASSETS ACCOUNT GROUP 67 CITY OF DIAMOND BAR Comparative Schedule of General Fixed Assets by Source June 30, 1997 and 1996 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 68 1997 $1,969,899 859,345 579,301 915,333 4,323,878 3,144,189 97,949 1,069,152 12,588 $4,323,878 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 CITY OF DIAMOND BAR Schedule of General Fixed Assets by Function and Activity June 30, 1997 Function and Activity General government: City council - Administration City clerk Community development Finance Other Total general government Public safety: Sheriff Emergency preparedness Total public safety Public works Culture and recreation Library Total general fixed assets EXHIBIT E-2 69 Improvements Furniture Other than and Land Buildings Buildings Equipment Total $ - - 8,969 8,969 - - - 482,297 482,297 - - - 23,301 23,301 - - - 19,563 19,563 - - - 62,134 62,134 409,899 - 11,000 420,899 409,899 - 607,264 1,017,163 - - - 84,305 84,305 - 26,833 26,833 - - - 111,138 111,138 - - 22,463 22,463 1,560,000 859,345 579,301 141,608 3,140,254 - - - 32,860 32,860, $1,969,899 859,345 579,301 915,333 4,323,878 69 EXHIBIT E-3 CITY OF DIAMOND BAR Schedule of Changes in General Fixed Assets by Function and Activity Year ended June 30, 1997 Function and Activity General government: City council Administration City clerk Community development Finance Other Total general government Public safety: Sheriff Emergency preparedness Total public safety Public works Culture and recreation Library . Total general fixed assets Balance at Balance at June 30,1996 Additions Deletions June 30. 1997 $ 8,969 - - 8,969 430,376 51,921 - 482,297 16,381 6,920 - 23,301 16,102 3,461 - 19,563 59,158 2,976 - 62,134 420,899 - - 420,899 951,885 65,278 - 1,017,163 13,775 70,530 - 84,305 25,882 951 - 26,833 39,657 71,481 - 11 1,138 19,735 2,728 - 22,463 3,116,360 23,894 - 3,140,254 32,860 -- - 32,860 $4,160,497 163,381 - 4,323878 70 •.......................................... L Table 1 City of Diamond Bar General Governmental Expenditures by Function (1) Since Incorporation in April, 1989 (unaudited) Fiscal General Public Public Culture & Capital Debt Year Government* Safe Works Recreation Outlay* Service Total 1988-89 $249,482 $438,805 $90,927 $31,296 $0 $6,325 $816,835 1989-90 $2,509,540 $3,235,362 $1,143,795 $357,604 $1,027,049 $90,842 $8,364,192 1990-91 $3,322,753 $3,600,879. $1,397,501 $603,997 $949,540 $0 $9,874,670 1991-92 $2,923,206 $3,794,887 $1,673,144 $740,687 $359,931 $0 $9,491,855 1992-93 $2,963,968 $3,478,006 $2,094,910 $822,559 $1,876,098 $100,000 $11,335,541 1993-94 $2,456,056 $3,819,724 $2,310,313 $976,957 $1,638,409 $564,790 $11,766,249' 1994-95 $2,270,162 $4,099,515 $2,678,261 $1,072,288 $1,726,067 $108,780 $11,955,073 1995-96 $2,319,801 $4,110,104 $2,372,404 $1,127,136 $1,579,421 $104,930 $11,613,796 1996-97 $2,615,272 $4,095,518 $2,279,731 $1,270,617 $1,541,307 $10,320 $11,812,765 Total General Fund Expenditures 14 12 10 c 8 0 6 4 2 0 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Fiscal Year (1) Includes General, Special Revenue and Capital Project Funds. * Note: General Government includes Community Development Expenditures Capital Outlay includes Street & Highways Expenditures Source: City Finance Department mil Fiscal Year 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 City of Diamond Bar General Governmental Revenues by Source (1) Since Incorporation in April, 1989 (unaudited) Table 2 Use of Money Other & Property Revenue Total $1,650 Special Licenses & Inter- Fines & Taxes* ssessments Permits Governmental Forfeitures $273,078 $11,940,876 $451,077 $21,093 $0 $112,578 $1,371,326 $1,946 $3,497,401 $409,454 $841,525 $5,271,606 $193,852 $4,409,302 $422,038 $597,771 $5,993,281 $281,891 $4,593,790 $466,369 $864,260 $5,067,309 $97,730 $4,494,173 $469,671 $724,694 $5,910,715 $123,242 $5,060,850 $499,030 $965,835 $5,539,046 $187,430 $5,174,343 $476,1.48 $881,588 $5,640,400 $253,824 $5,538,406 $538,896 $1,066,475 $5,735,096 $261,138 $5,708,029 $530,375 $1,417,073 $6,356,015 $176,267 Table 2 Use of Money Other & Property Revenue Total $1,650 $46,625 $1,555,218 $440,520 $8,313 $10,662,671 $506,081 $55,307 $12,265,671 $578,340 $273,078 $11,940,876 $451,077 $101,305 $12,274,877 $466,209 $38,372 $12,756,772 $732,693 $56,399 $13,215,395 $863,855 $50,787 $14,054,653 $1,005,683 $43,256 $15,236,698 Total General Governmental Revenues 16 14 12 10 a c 0 8 6 4 2 0 1988-89 .1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 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 72 Table 3 City of Diamond Bar Secured Property Tax Levies and Collections Since Incorporation April 1989 (unaudited) Fiscal Total Current Total Current Percent of Levy Deliquent Tax Year Lev Collections Collected Receivables 1988-89 Not Available Not Available Not Available Not Available 1989-90 $908,401 $835,873 92.02% $72,529 1990-91 $1,089,679 $1,013,572 93.02% $76,107 1991-92 $1,232,346 $1,144,019 92.83% $88,327 1992-93 $1,117,482 $1,025,382 91.76% $92,101 1993-94 $1,180,435 $818,467 69.34% $361,969 1994-95 $1,804,068 $1,625,911 90.12% $178,157 1995-96 $1,796,593 $1,711,983 95.29% $84,610 1996-97 $1,809,197 $1,625,251 89.83% $183,946 Property Tax Collections (in thousands) 0 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Fiscal Year Note: The City of Diamond Bar settled a property tax lawsuit with Los Angeles County that resulted in additional property tax payments totalling $1,882,789. The funds were received in three*(3) payments payments dated February 1994, August 1994 and August 1995. These amounts are not included in the above figures as they were associated with the initial property tax transfer at the date of incorporation. Source: Los Angeles County Auditor/Controller 73 2,000 1,500 o v c 1,000 0 H 500 Property Tax Collections (in thousands) 0 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Fiscal Year Note: The City of Diamond Bar settled a property tax lawsuit with Los Angeles County that resulted in additional property tax payments totalling $1,882,789. The funds were received in three*(3) payments payments dated February 1994, August 1994 and August 1995. These amounts are not included in the above figures as they were associated with the initial property tax transfer at the date of incorporation. Source: Los Angeles County Auditor/Controller 73 City of Diamond Bar Assessed and Estimated Actual Values mtTaxable Property Since Incorporation in April, 1989 Tex Secured Gross Unsecured Gross Year Value Value/ 1988-89^ $2.345946.185 $8 1989-90^ D0mmaase $O 1990-91 $2.926.368.105' $O 1991-92 $3.285.467.898 $40.688.268 1882-93 $3,493.803.851 $45.032.160 1993-94 $3.536.453.242 $43.709.273 1894-95 $3.619,438.021 $57.158.841 1995-96 $3.853.337.878 *60.689.091 1096-97 $3.660.223.979 *64.187.086 Net Assessed Value (in millions) 4,000 3,500 0 3,000 2,500 2,000 1988-89* 1989-90* 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Fiscal Year *1Q88-8Sand iQ89-6Oestimated byusing the comb�d oma �' Unified School m�V�n���y Unified School D��k�-Sounce:'Ca0brnioYNu' ` °^Los Angeles County Auditor/Controller reported noPublic Utility Valuations Source: Los Angeles County HdL Coren & Cone 74 Percentage Public Exemptions ' Net Value D0mmaase $U $U $2.345.946.185 Not Applicable $O $U $2,663648,618 13.54% $827.618 $5,409.199 *2.921.786.524 9.69% $692,380 $10.921.667 *3.315'936.884 13.49% $O°° $27.932.643 $3.510.903.368 5.88% $844.312 $25.119.688 $3.561.887.140 1.45% $820.862 $33.523.553 $3.643.892.171 2.30% $825.138 $35.979.540 $3.684.872.565 1.12% $828.963 $27.479.816 $3.687.760,412 0359& Net Assessed Value (in millions) 4,000 3,500 0 3,000 2,500 2,000 1988-89* 1989-90* 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Fiscal Year *1Q88-8Sand iQ89-6Oestimated byusing the comb�d oma �' Unified School m�V�n���y Unified School D��k�-Sounce:'Ca0brnioYNu' ` °^Los Angeles County Auditor/Controller reported noPublic Utility Valuations Source: Los Angeles County HdL Coren & Cone 74 City of Diamond Bar Property Tax Ratem-Al|Directand Overlapping Governments (Per $1OOmfAssessed Valuation) Since Incorporation imApril, 1889 (unaudited) Fiscal General Los Angeles Walnut Valley Walnut Valley L.A.County L.A.County Metropolitan Year LM Couu SuhoodUCisddc VVaberJDistcic Flood Coobzd Sanitation -Water Distdck Total 1988-88 - - - - - - - Not Available 1989-90 - - - - - - - Not Available 1990-91 1.0000000 0.0021040 0.1597230 0.0578770 0.0057860 0.0007470 0.0097000 1.2359370 1991f2 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 0.0017180 0.0883570 0.0448070 0.0042120 0.0000000 0.0089000 1.1458880 1994-95 1.0000000 0.0019930 0.0648030 [\OOOOOOO 0.0060410 0.0000000 0.0089000 1.0818870 1985-96 1.0000000 0.0018140 0.0089866 0.0000000 0.0009680 0.0000000 0.0089000 1.0206636 1996-97 1.0000000 0.0016040 0.0850300 0.0000000 0.0019910 0.0000000 0.0089000 1.0975330 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 me 1988-89 1989-90 1990-91 1991-92 1992-93 1993-!94 1994-95 1995-96 Fiscal Year Note: Property tax rates based onatypical tax rate area � | Gnumo Los Angeles County HdLCurmn & Cone |j 75 Table 6 City of Diamond Bar Principal Taxpayers June 30, 1997 $145,951,935 3.92% Source: HdL Coren &Cone 1996-1997 Percentage of Total Taxpayer Primary Use Assessed Valuation Net Assessed Valuation Diamond Bar Business Associates Commercial $29,535,399 0.79% M & H Realty Parners 11 Commercial $20,666,119 0.55% Hidden Manna Corporation Commercial $19,000,721 0.51% JF Shea Company Inc. Industrial $12,168,275 0.33% PGP Inland Communities Residential $11,946,050 0.32% Nikko Capital Corporation Commercial $11,585,739 0.31% Martin Brattrud Properties Commercial $10,686,250 0.29% Lincoln Emerald Pointe Residential $10,562,250 0.28% TCEP 11 Properties Joint Venture Commercial $10,196,519 0.27% Nugit Trust Commercial $9,604,613 0.26% $145,951,935 3.92% Source: HdL Coren &Cone wmm City ofDiamond Bar Computation of Legal Debt Margin June 30v1997 Assessed Valuations: / Assessed Value $9678.278.206 Add Back: Exempt Property' | Total Assessed Value | $3,705 757 822 | Legal Debt Debt Limitation -15Y6ofTotal Assessed Value* $555,8K6],6[73 Debt Applicable to Unlit � Total Bonded | � GU Less: Special Assessment Bonds . $O Revenue Bonds $U \ | Available for Repayment ofGeneral Obligation Bonds Total Debt Applicable boLimitation i LoQo| Debt Margin The City ofDiamond Bar has nobonded indebtedness. ° Section 43O05ofthe California Government Code ON City of Diamond Bar Computation of, Direct and Overlapping Debt June 30, 1997 (unaudited) Government Loa Angeles County Facilities 1S87Debt Service L&[oFlood Control (Storm Drain Bond No. 4U Flood Control Ref. Bonds 1SS3Debt 8amiuo *Metropolitan Water District Area 1112Debt Service Pomona Unified School District. 'S1-ADebt Service Pomona Unified School District. 'S1-BDebt Service Pomona Unified School District. '91-ODebt Service Pomona Unified School District. '31-DDebt Service Pomona Unified School District. '81-EDebt Service Pomona Unified School District. '81-FDebt Service Walnut Valley Unified '78-ADebt Service VVa|nutVaUeyUnifiod-DebtGenvioa Walnut Valley Un|8ed'S1-4Debt Service Walnut Valley Unified '91-BDebt Service Walnut Valley Unified '91-CDebt Service 1USO/87Assessed Valuation: Debt ToAssessed Valuation Ratios: Gross Bonded Debt Balance % Applicable Debt @ 6/30/97 $62,345,000 0.754% $470,013 �6,590,00 0.772% $20.266 $27.545,000 0.772Y6 $212.638 $580.640.800 0.418Y6 $2.424.731 $4.980.000 27.427% S1.365.886 $10,000.000 27.427% $2.742.743 _ $20000000 27.427% $5,485,485 $2.855.000 27.427% $783.053 $7.315.000 27.427% $2.006.316 $7.000.000 27.427% $1.919,820 $80.000 57.545% $46.036 $250.000 57.545% $143.862 $14.880.000 76.470Y&' $11.378.765 $21,295.000 76.470Y6 $16'786�091 $13.000.000 76.470Y6 $9.941.126 Direct Debt 0.000% Overlapping Debt 1.520% Total Debt 1.520% $55,891,931 Report reflects general obligation debt which hsbeing repaid indebtedneao It excludes revenue, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations and certificates of participation Source: HcUCoren&Cone City of Diamond Bar Schedule of Insurance In Force June 30, 1997 Type of Coverage Limits/Deductibles Insurer Policy Period Liability: General Liability, Automobile $50,000,000 combined single limit Self Insured Program/ 07/1/96-07/1/97 Liability, Bodily Injury, Property limit each occurrence, $50,000,000 California Joint Powers Damage, Personal Injury aggregate. $20,000 self-insured Insurance Authority retention Special Liability: Errors and Ommissions, Employ- $1,000,000 each occurrence, Self Insured Program/ 07/1/96-07/1/97 ment Practices Injury, Contractual $2,000,000 aggregate. Retained California Joint Powers Liability Injury, Broadcast/Publication loss of $20,000 per occurrence and Insurance Authority Publication Injury, Employee Benefits, Administration Injury, Discimination Injury !, Property: All -Risk, including buildings, $2,397,043 limit, deductible of Zurich Insurance 01/01/97 - 01/01/98 contents, garaged vehicles, $5,000 per occurrence contractor's equipment, fine arts, rental income and other mis- cellaneous extensions of coverage i Automobile Physical Damage $173,731 limit, deductible of Zurich Insurance 01/01/97 - 01/01/98 $1,000 per occurrence Crime: Public Employee Blanket Fidelity Bond - . Faithful Performance Bond $1,000,000 limit, deductible of Hartford Insurance 01/01/97 -12/31/97 $5,000 per occurrence Depositor's Forgery $100,000 limit, deductible of Hartford Insurance 01/01/97 - 12/31/97 $5,000 per occurrence Crime - Money and Securities $100,000 limit, deductible of. Hartford Insurance 01/01/97 - 12/31/97 $5,000 per occurrence Workers' Compensation: Work-related injury/illness claims California statutory limit; State Compensation 10/01/96 -10/01/97 for temporary and permanent $1,000,000 employer's liability Insurance Fund disability Source: City Finance Department 79 Table 10 CITY • k DIAMOND BAR jOGRAPHICD MISCELLANEOUS STATISTICAL JUNE 30,1997 Date of Incorporation...............................................................................................April 18, 1989 Form of Government ................................................... :...................................... Council -Manager Area..........................:.......................................................................................14.9 Square Miles Milesof Streets........................................................................................................................137 Employees(full-time)................................................................................................................25 Fire Protection (Los Angeles County Consolidated Fire Protection District): Numberof Stations...................................................................................................................3 Number of Firemen and Officers.............................................................................................40 Police Protection (Contract with Los Angeles County): Numberof Stations...................................................................................................................1 Numberof Officers..................................................................................................................27 Sewers: SanitarySewers...............................:...............................................................................146.88 StormSewers....................................................................................................................31.95 Recreation and Culture: CommunityCenters..................................................................................................................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:* 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 1997 56,659 1.17 **Estimate Only * Source: State of California, Department of Finance :E Table 11 City of Diamond Bar Residential and Commercial Construction Since Incorporation in April, 1989 (Unaudited) (1) Includes multiple dwellings Source: City's Contract Building & Safety Provider, Findley Reports 81 New Construction Fiscal Residential (1) Commercial Year Units Value Units Value 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 $4,619,400 0 $0 1995-96 26 $16,715,000 0 $0 1996-97 15 $9,516,000 1 $4,300,000 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 1996-97 595 $12,150,400 58 $3,826,800 Bank Deposits 1988-89 $321,853,000 1989-90 $343,605,000 1990-91 $377,224,000 1991-92 $381,710,000 1992-93 $371,506,000 1993-94 $379,581,000 1994-95 $423,640,000 1996-97 $480,610,000 (1) Includes multiple dwellings Source: City's Contract Building & Safety Provider, Findley Reports 81 General Fund Ratio 1.4 . i Table 12 1.2 City of Diamond Bar Ratio - Unreserved General Fund Balance to Annual General Fund Expenditures 1.0 Since Incorporation in April, 1989 0.8 z (unaudited) 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 0.4 Unreserved General Fund 0.2 Balance $50,915 $1,375,030 $2,200,322 $3,019,852 $3,305,067 $5i677,619 $7,711,454 $9,600,649 $10,755,111 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 $8,777,410 Ratio 0.064 0.208 0.274 0.368 0.401 0.609 0.936 1.137 1.225 General Fund Ratio 1.4 1.2 1.0 0.8 z 0.6 0.4 0.2 0.0 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 Fiscal Year Source: City Finance Department 82 CITY OF DIAMOND BAR Schedule of Credits June 30, 1997 Name Area of Contribution Terrence L. Belanger, City Manager General Overview Letter of Transmittal Linda G. Magnuson, Assistant Finance Director General Overview Letter of Transmittal Statistical Tables Joann M. Gitmed, Senior Accountant Statistical Tables Conrad and Associates, C.P.A., L.L.P. Financial Statements Notes to Financial Statements Mike Nelson, Community Relations Manager Cover and Divider Page Design Source: City of Diamond Bar 83 Table 13 (This page intentionally left blank.) 84 City of Diamond Bar 21660 E. Copley Drive, Suite 100 * Diamond Bar, California 91765-4177