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
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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
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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
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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
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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
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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.
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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
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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
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Certificate of.
Achievement'
for Excellence
in - Financial
Reporting.
Presented to
City of Diamond Bar,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 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
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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
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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
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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
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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