HomeMy WebLinkAboutCAFR - FY 1989-90CITY OF DIAMOND BAR
ANNUAL AUDIT REPORT
Year Ended June 30, 1990
THOMAS, BYRNE & SMITH
AN ACCOUNTANCY CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
RIVERSIDE, CALIFORNIA
CITY OF DIAMOND BAR CALIFORNIA
ANNUAL AIDIT-ITFORT
Year Ended June 30, 1990
TABLE OF CONTENTS
Page Number
I. Independent Auditors' Opinion
II. General Purpose Financial Statements
Exhibit 1 - Combined Balance Sheet - All Fund Types and Account Groups 1
Exhibit 2 - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2
Exhibit 3 - Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General,
Special Revenue and Capital Project Fund Types 3
Exhibit 4 - Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types 4
Exhibit 5 - Statement of Cash Flocs - All Proprietary Fund Types 5
Notes to Financial Statements 6 - 13
III. Supplemental Information
Schedule 1 - General Fund - Statement of Revenues - Budget and Actual 14
Schedule 2 - General Fund - Statement of Expenditures - Budget and Actual 15
Schedule 3 - Combining Balance Sheet - All Special Revenue Funds 16
Schedule 4 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Special Revenue Funds 17
Schedule 5 - Combining Balance Sheet - All Capital Project Funds 18
Schedule 6 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Capital Project Funds 19
THOMAS, BYRNE & SMITH
AN ACCOUNTANCY CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
Donald L. Thomas, C.P.A.
D. Richard Byrne, C.P.A. 4362 Orange Street
Rivers
V. C. Smith, Jr., C.P.A. INDEPENDENT AUDITORS' REPORT Riverside, California 1
Jerry D. Bigbie, C.P.A. (714} 682--4854851
City Council
City of Diamond Bar
Diamond Bar, California
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, 1990, as listed in the table of contents. These financial statements are the responsibility
of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. 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, 1990, and the results of its operations
and the statement of cash flows for its proprietary fund types for the year then ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole.
The supplemental information listed in the table of contents is presented for purposes of additional analysis and is
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.
4 , �V-2e
August 30, 1990
Assets and Other Debits
Cash (Notes 1 and 3)
Accounts Receivable
Interest Receivable
Accrued Revenue Receivable
Due From Other Funds (Note 4)
Due From Other Governments
Fixed Assets (Notes 1 and 5)
Other Debits
Resources Available for
Long -Term Obligations
Total Assets and Other Debits
Liabilities, Equity and Other Credits
Liabilities
Accounts Payable
Interest Payable
Accrued Liabilities
Due To Other Funds (Note 4)
Deposits
Claims And Judgements Payable (Note 6
Tax And Revenue Anticipation Notes
Payable (Note 7)
Long Term Obligations
(Notes 8, 9, and 10)
Total Liabilities
Equity and Other Credits
Investment in General Fixed Assets
Retained Earnin s
Unreserve - Undesignated'
Fund Balances Notes 11 And 12
Reserve For Encum rances
Reserved For Debt Service
Unreserved:
Designated For Specific
Projects and Programs
Undesignated
Total Equity and Other Credits
Total Liabilities, Equity and
Other Credits
$ 5,783,302 $ 1,821,391 $ 638,507 S 129,812 S 16,697 $ 2,272,734 $ 527,815 1 11,190,258 $ 2,056,556
$ 633,288 $ 241,973 $ 24,523 $ $
158,309
26,336
255,861
4,275 16,697
50,100
3,000,000
3,872,308 497,834 24,523 -0- 16,697
129,812
8,149 20,891 49,489
527,815
$ $ $ 899,784 $ 24,950
158,309
26,336 60,025
255,861
20,972
50,100
3,000,000
527,815 527,815 610,695
527,815 4,939,177 695,670
2,272,734 2,272,734 11,808
129,812
78,529
527,815 610,695
737,468
1,375,030 1,302,666 564,495 6,242,191 915
1,910,994 1,323,557 613,984 129,812 -0- 2,272,734 6,251,081 1,360,886
$ 5,783,302 S 1,821,391 S 638,507 $ 129,812 $ 16,597 $ 2,272,734 $ 527,815 $ 11,190,258 S 2,056,556
The accompanying notes are an integral part of this statement.
- 1 -
CITY OF DIAMOND BAR CALIFORNIA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT
GROUPS
EXHIBIT 1
June 30, 1990
Fiduciary
Proprietary
Fund
Totals
-
Governmental Fund
Tyne, Fund Types
Types
Account Groups
(Memorandum
Only)
Special
Capital Liability
Trust And
General Long -Term
June 30
General
Revenue
Project Insurance
Agency
Fixed Assets Obligations
1990
1989
$4,869,993
$1,794,483
$ 312,529 $ 129,812
$ 16,697
$ $
$ 7,123,514 $
797,602
80,972
80,972
48,363
154,342
154,342
475,510
255,861
255,861
422,134
26,908
325,978
775,020
112,578
2,272,734
2,272,734
11,808
527,815
527,815
610,695
$ 5,783,302 $ 1,821,391 $ 638,507 S 129,812 S 16,697 $ 2,272,734 $ 527,815 1 11,190,258 $ 2,056,556
$ 633,288 $ 241,973 $ 24,523 $ $
158,309
26,336
255,861
4,275 16,697
50,100
3,000,000
3,872,308 497,834 24,523 -0- 16,697
129,812
8,149 20,891 49,489
527,815
$ $ $ 899,784 $ 24,950
158,309
26,336 60,025
255,861
20,972
50,100
3,000,000
527,815 527,815 610,695
527,815 4,939,177 695,670
2,272,734 2,272,734 11,808
129,812
78,529
527,815 610,695
737,468
1,375,030 1,302,666 564,495 6,242,191 915
1,910,994 1,323,557 613,984 129,812 -0- 2,272,734 6,251,081 1,360,886
$ 5,783,302 S 1,821,391 S 638,507 $ 129,812 $ 16,597 $ 2,272,734 $ 527,815 $ 11,190,258 S 2,056,556
The accompanying notes are an integral part of this statement.
- 1 -
COMBINED
STATEMENT OF REVENUES EXFENUI'lURES
AND Vt1ANtiEJ 1N
rUNU tstutuYUao -
AL GOVERN
NT D TYPES
Year Ended
June 30, 1990
Exhibit 2
Totals
-
(Memorandum Only)
Special
Capital
Year Ended
June 30,
General
Revenue
Project
1990
1989
Revenues
axes
$ 3,497,401
$
$
$ 3,497,401
$ 21,093
Special Assessments
409,454
409,454
Licenses and Permits
841,525
841,525
112,578
Intergovernmental
2,698,770
2,172,836
400,000
5,271,606
1,371,326
Fines And Forfeits
49,599
144,253
193,852
1,946
Use Of Money And Property
317,293
123,227
440,520
1,650
Miscellaneous
8,313
8,313
46,625
Total Revenues
7,412,901
2,849,770
400,000
10,662,671
1,555,218
Expenditures
General Government - Departmental
1,412,617
1,412,617
249,482
General Government - Nondepartmental
547,126
549,797
1,096,923
Public Safety
3,235,362
3,235,362
438,805
Public Works
756,771
299,814
87,210
1,143,795
90,927
-- Parks, Recreation and Culture
357,604
357,604
31,296
Capital Outlay
200,237
802,028
24,784
1,027,049
Debt Service:
-- Principal Retirement
90,842
90,842
Interest and Fiscal Charges
6,325
Total Expenditures
6,600,559
1,651,639
111,994
8,364,192
816,835
Excess Of Revenues Over (Under) Expenditures
812,342
1,198,131
288,006
2,298,479
738,383
Other Financing Sources (Uses)
Operating Transfers In (Out)
437,042
(562,042)
(125,000)
Proceeds From Long-Term Debt
610,695
Excess of Revenues and Other Sources Over (Under)
Expenditures And Other Uses
1,249,384
636,089
288,006
2,173,479
1,349,078
Fund Balances - Beginning of Year
661,610
687,468
-0-
1,349,078
-0-
Prior Period Adjustment (Note 1M)
325,978
325,978
Fund Balances - Beginning of Year as Restated
661,610
687,468
325,978
1,675,056
-0-
Fund Balances - End of Year
S 1
S 1,323,557
yS 613,984
$ 3,848,535
$1,349,078
The accompanying notes are an integral part of this statement.
- 2 -
EXHIBIT 3
ear rnaea June JU,
The accompanying notes are an integral part of this statement.
- 3 -
General Fund
Special
Revenue Funds
Capital
Project Funds
Variances -
Variances -
Variances -
Favorable
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Revenues
-axes
$ 3,497,300
$ 3,497,401
$ 101
$
$
$
$
$
$
Special Assessments Levied
409,250
409,454
204
Licenses and Permits
Intergovernmental
840,900
2,698,550
841,525
2,698,770
625
220
2,172,600
2,172,836
236
400,000
400,000
Fines and Forfeits
49,600
49,599
(1)
144,200
144,253
53
Use of Money and Property
317,300
317,293
(7)
122,900
123,227
327
Miscellaneous
8,300
8,313
13
Total Revenue
7,411,950
7,412,901
951
2,848,950
2,849,770
820
400,000
400,000
-0-
Expenditures
General Government -
Departmental
1,416,962
1,412,617
4,345
General Government -
Nondepartmental
546,150
547,126
(976)
549,797
549,797
Public Safety
3,243,436
3,235,362
8,074
40
Public Works
757,425
756,771
654
299,914
299,814
100
87,250
87,210
Parks, Recreation and Culture
Capital Outlay
358,155
200,600
357,604
200,237
551
363
802,044
802,028
16
24,800
24,784
16
Debt Service:
Principal Retirement
92,628
90,842
1,786
Total Expenditures
6,615,356
6,600,559
14,797
1,651,755
1,651,639
116
112,050
111,994
56
Excess of Revenues Over
(Under) Expenditures
796,594
812,342
15,748
1,197,195
1,198,131
936
287,950
288,006
56
Other Financing Sources Uses
Operating Tran ein Out
437,045
437,042
(3)
(562,045)
(562,042)
3
Excess of Revenues and Other Sources
Over (Under) xpen itures an
$ 1,233,639
��
1,249,384
$ 15,745
$ 635,150
636,089
$ 939
$ 287,950
288,006
S� 56
mer ses
Fund Balance - Beginning of Year
661,610
687,468
-0-
Prior Period Adjustments
325,978
Fund Balances - Beginning o£ Year
661,610
687,468
325,978
As estate
Fund Balances - End of Year
$ 1,910,994
$ 1,323,557
$ 613,984
The accompanying notes are an integral part of this statement.
- 3 -
CITY OF DIAMOND "CALIFORNIA
STATEMENT OF REVENUES E S S AN GES IN RETAINED EARNINGS
PROPRIETARY Exhibit 4
Year Ended Tu -n -e--5-0,--1-990
Operating Revenues
Charges for Services
Total Operating Revenues
Operating Expenses
COntractua ervices
Total Operating Expenses
Operating Income
Non Operating Revenues (Expenses)
nterest evenue
Income Before Operating Transfers
Operating Transfers in (Out)
Net Income
Retained Earnings - Beginning of Yeaz
Retained Earnings - End of Year
The accompanying notes are in an integral part of this statement.
-4-
Totals -
(Memorandum Only)
Internal Year Ended June 30
Service 1990 1989
� S S
-0- -0- -0-
-0- -0- -0-
-0- -0- -0-
4,812 4,812 -0-
4,812 4,812 -0-
125,000 125,000 -0-
129,812 129,812 -0-
-0- -0- -0-
1112."812
0-
129812 -0-
Cash Flows From Operating Activities
elft Cash Providedy Operating Activities
Cash Flows From Noncapital Financing Activities
Operating Transfers In
Net Cash Provided By Noncapital Financing Activities
Cash Flows from Investing Activities
Interest On Investments
Net Cash Provided By Investing Activities
Net Increase In Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
Reconciliation of Net Qperating Income to Net
Cas Provided by Qperating Activities
Net Operating Income
Net Cash Provided by Operating Activities
The accompanying notes are an integral part of this statement.
CITY OF DIAMOND BAR CALIFORNIA
A EME O CAS POWS
OPR D YP S
Year Ended June 30, 1990
-5-
Fo►7i
Internal
Service
$ -0-
125,000
125,000
4,812
4,812
129,812
$ 129,812
CITY OF DIAMOND BAR CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
IN ORDER OF PRESENTATION
Year Ended June 30, 1990
Note
Description
Page Number
1
Summary of Significant Accounting Policies
7 - 9
2
Property Tax Calendar
9
3
Composition of Cash
9 - 10
4
Interfund Receivables and Payables
10
5
General Fixed Assets
10
6
Claims and Judgements Payable
11
7
Tax and Revenue Anticipation Notes Payable
11
8
Long Term Obligations
11
9
Compensated Absences
11
10
Advances - County of Los Angeles
11
11
Fund Balance(Retained Earnings Reserves
11
12
Fund Balance Deficit
12
13
Deferred Compensation Plan
12
14
City Employees Retirement Plan
12 - 13
15
Contingencies
13
-6-
CITY OF DIAMOND BAR CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 1990
1) Summary of Significant Accounting Policies
The City of Diamond Bar, California was incorporated April 18, 1989 as a General Law City. The City operates under a Council -Manager form of government and provides
the following services: public safety (police), highways and street, parks, public improvements, community development (planning, building, zoning) and general
administrative services.
The financial statements of the City of Diamond Bar, California have been prepared in conformity with generally accepted accounting principles as applied to
government units. The Governmental Accounting Standards Board is the accepted standard setting body for establishing governmental accounting and financial
reporting principles. The more significant of the government's accounting policies reflected in these financial statements are summarized as follows:
A) Description of Entity
Included within the financial reporting entity City of Diamond Bar, is solely the City of Diamond Bar. Other governmental agencies providing services either
to the City in its entirety, or to a portion thereof are:
State of California
County of Los Angeles
Tri- Valley Water District
Walnut Valley Water District
Pomona Unified School District
Walnut Valley Unified School District
Mount San Antonio Community College District
California Polytechnic University
Consolidated Fire Protection District
The City of Diamond Bar does not exercise oversight responsibility over any of the above entities. Each of these agencies is governed by an independently -elected
governing board other than the City Council of the City of Diamond Bar. These agencies are not financially dependent on the City, and the City does not have
the ability to significantly influence their management or operations. Consequently, financial information for these agencies is not included within the scope
of this financial report.
As recommended by GASB Code Section J50.103, financial data for joint ventures which do not meet the criteria for inclusion within the reporting entity have
been reported in the footnotes.
B) _Basis of Presentation - Fund Accountin
The accounts of the City are organized on the basis of funds and account groups each of which is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses,
as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means
by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into five generic fund types and three
broad fund categories as follows:
Governmental Funds
General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted
for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major projects) that are legally
restricted to expenditures for specific purposes.
Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital
facilities (other than those financed by Proprietary and Trust Funds).
Proprietary Funds
Internal Service Funds - Internal Service Funds are used to account for goods or services provided by one department to other departments on a cost reimbursement
basis. The Internal Service Fund of the City of Diamond Bar consists solely of the Self Insurance Fund.
Fiduciary Funds
Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments, and/or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results
of operations.
C) Fixed Assets and Long -Term Liabilities
The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus.
All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are
generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measurement of "Available Spendable Resources".
Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net
current assets. Accordingly, they are said to present a summary of sources of "available spendable resources" during a period.
-7-
CITY OF DIAMOND BAR CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 1990
1) Summary Significant Account
C iisPolitcies (Continued)
FixedAssets anLong Term
(Continued)
Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in
governmental funds. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges,
curbs and, gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized as general fixed assets. No depreciation has been provided
on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their
estimated fair value on the date donated.
Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long -Term Obligation Account Group, not in the governmental
funds.
The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results
of operations.
Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets, in spite of their spending measurement focus. Special
reporting treatments are used to indicate, however, that they should not be considered "available spendable resources", since they do not represent net current
assets. Recognition of governmental fund type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent
portions of long-term loans receivable are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for governmental fund types is limited -to exclude amounts represented by non-current
liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities.
They are ,instead reported as liabilities in the General Long -Term Obligation Account Group.
All proprietary fund types are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and all liabilities
(whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated
into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses)
in net total assets.
D) Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurements made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available
as net current assets. The primary revenue sources susceptible to accrual are sales taxes, property taxes, special assessments, fines and forfeitures which
are considered "measurable" when in the hands of intermediary collection governments and are recognized as revenue at that time. Anticipated refunds of such
taxes are recorded as liabilities and reductions of revenues when they are measurable and their validity seems certain.
Expenditures are generally recognized under the accrual basis of accounting. Exceptions to this general rule are (1) principal and interest on general long-term
debt which is recorded as expenditure on its due date (2) disbursements for inventory type items are considered expenditures at the time of purchase and (3)
expenditures are not divided between years by recording of prepaid expenses.
All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are
recognized when they are incurred.
E) Budgets and Budgetary Accounting
The City uses the following procedures in establishing the budgetary data reflected in the financial statements.
1) Before the beginning of the fiscal year the City Manager submits to the City Council a proposed budget for the following July 1.
2) Public hearings are conducted to obtain taxpayer comments.
3) The budget is subsequently adopted through passage of a resolution.
4) All appropriated amounts are as originally adopted or as amended by the City Council and lapse at year end.
5) Encumbrances and Continuing Appropriations are rebudgeted on July 1 by Council action
6) Original appropriations are modified by supplementary appropriation and transfers among budget categories. The City Council approves all significant changes.
7) Formal budgetary integration is employed as a management control device during the year for the General, Special Revenue and Capital Project Funds. Formal
budgetary integration is nox employed for Debt Service Funds because effective budgetary control is alternatively achieved through debt indenture provisions.
8) Budgets for General, Special Revenue and Capital Project Funds are adopted on a basis consistent with generally accepted accounting principles.
-8-
CITY OF DIAMONDBAR CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 1990
1) Summary of Significant Accounting Policies (Continued)
F) Appropriations Limit
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations
from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the
taxpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 1990, based on calculations by City
Management, proceeds of taxes did not exceed appropriations.
G) 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 integration in the Governmental Fund Types. Encumbrances outstanding at year-end
arereportedas reservations of fund balance since they do not constitute expenditures or liabilities.
H) Investments
Investments are stated at cost (see Note 3), except that assets of the deferred compensation plan agency fund are reported at fair market value rather than cost,
in accordance with GASB, Statement 2. If market values decline below cost, no loss is recorded if such declines are considered temporary.
I) Claims and Judgments
Claims and judgments are accounted for in accordance with GASB Codification Section C50.110, which requires that expenditures for claims be recognized when it
is probable that the liability has been incurred at year end and the amount of the loss can be reasonably estimated. Accordingly, such claims are recorded as
liabilities in the financial statements.
J) 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.
K) Total Columns on Combined Statements - Overview
Total columns on the Combined Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
L) Prior Period Adiustment - $325;978
A prior period adjustment of $325,978 in the Traffic Mitigation Fund represents developer fees collected by the County of Los Angeles to be used to mitigate any
traffic problems that might be caused by the Gateway Corporate Center Development that were not previously recorded.
2) Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien date March 01
Levy date July 01 to June 30
Due date November 01 -1st installment
March 01 - 2nd installment
Delinquent date December 10 - 1st installment
April 10 - 2nd installment
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 prescribed by the state statutes.
3) Composition of Cash
The City of Diamond Bar maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reflected in the combined
balance sheet as cash.
Cash and investments by credit risk, carrying amount and market value of investments at June 30, 1990, consisted of the following:
Carrying Market Category
Amount Value 1 2 3
Fiscal Agent Investments 16,697 16,697 yam— $te— 16,697
Demand Accounts* (206,783) (206,783) (206,783)
(190,086) (190,086) $ () S -0-$16 697
State of California - LAIF 7,313,000 7,313,000
Petty Cash 600 600
Total Cash and Investments 7,123,514 7,123,514
* 100 Percent Insured or Collateralized
-9-
CITY OF DIAMOND BAR CALIFORNIA
NOTES TO FINANCIAL.STATEMENTS
Year Ended June 30, 1990
3) Composition of Cash (Continued)
The amounts of cash and investments are classified in these three categories of credit risk:
Category 1 - Includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name.
Category 2 - Includes uninsured and unregistered investments for which the securities are held by the broker's or dealer's trust department or agent in the City's
name.
Category 3 -'Includes uninsured and unregistered investments for which the securities are held by the broker or dealer or by its trust department or agent -but not
in the City's name.
The following disclosures are made in accordance with Statement Number 3 of the Governmental Accounting Standards Board:
Authorized Investments
Under provisions of the City's Investment Policy, the City Charter, and in accordance with Section 53601 of the California Government Code, the City Treasurer may
deposit funds in the following investment media to the extent permitted by applicable law: (1) Securities of the U.S. Government or by its agencies; (2) certificates
of deposit or time deposits placed with commercial banks or savings and loan companies; (3) bankers acceptances, (4) negotiable certificates of deposit; (5) commercial
paper; (6) Local Agency Investment Fund; (7) repurchase agreements; (8) passbook savings deposits; (9) money market funds; (10) investment agreements or contracts
representingunconditional obligations; (11) Tax-exempt obligations. The City selects its investments based on safety, liquidity and yield.
Local Agency Investment Fund (LAIF)
The LAIF is a special fund of the California State Treasury through which local governments may pool investments. Each city may invest up to $10,000,000 in the
fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest. Investments with LAIF are
secured by the full faith and credit of the State'of California.
Collateral for Deposits
Under the provisions of the California Government Code, California banks and savings and loan associations are required to secure a city's deposits by pledging
government securities as collateral. The market value of the pledged securities must equal at least 110% of the city's deposits. California law also allows
financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city's total deposits.
The collateral for certificates of deposit is generally held in safekeeping by the Federal Home Loan Bank in San Francisco as the third -party trustee. The
securities are physically held in an undivided pool for all California public agency depositors. The State Public Administrative Office for public agencies and
the Federal Home Loan Bank maintain detailed records of the security pool which are coordinated and updated weekly.
The City Treasurer, at his discretion, may waive the 110% collateral requirement for deposits which are insured up to $100,000 by the FDIC or FSLIC.
4) Interfund Receivables and Payables
The balances due from and due to other funds as of June 30, 1990 are as follows:
Due From: Due To:
Traffic Safety Fund $ 11,429 General Fund $ 11,429
State Park Grant Fund 244,432 General Fund 244,432
255 861 255 861
5) General Fixed Assets $2,272,734
Activities relating to the general fixed assets are presented as follows:
Beginning Balance Additions
General Government
Furniture and Fixtures
Machinery and Equipment
Total General Government
Community Services
Land
Improvements
Total Community Services
Total General Fixed Assets
"Contributed parks valued using the latest assessed valuations
$ 11,808 $ 52,061
131,830
11,808 183,891
S 11,808
-10-
1,560,000*
517,035
2,077,035
$2,260,926
Deletions
-0-
-0-
Ending Balance
$ 63,869
131.830
195,699
1,560,000
517,035
2,077,035
S 2,272,734
CITY OF DIAMOND BARCALIFORNIA
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 1990
6) Claims and Judgements Payable - $50,100
These amounts represent estimates for liability claims from Colen and Lee, the City's Claim Administrator, for which the liability is probable. City staff concurred
with Colen and Lee that these are the City's best estimates. The estimated liability at June 30, 1990 as determined by Colen and Lee is $50,100.
7) Tax and Revenue Anticipation Notes Payable - $3,000,000
The 1989 Tax and Revenue Anticipation Notes payable dated August 10, 1989 are due September 4, 1990 with interest at 6.35%..
8) Long Term Obligations - $527,815
Activities relating to long term obligations are presented as follows:
* - Los Angeles County Treasury Pool Rate
** - As Monies Become available
9) Compensated Absences - $7,962
After twelve months continuous service with the City, full time employees receive from ten (10) to twenty (20) days vacation each year depending upon length of
service. Vacation can be accumulated up to a maximum of 20 days. Unused vacation may be cashed in upon leaving employment with the City. City employees receive
3.08 hours of sick leave per pay period and can be accumulated up to a maximum of 144 hours. Unused sick leave may be cashed in upon leaving employment at the rate
of 1/2 the employee's current rate of pay. The liability for compensated absences will be funded, when required, from future City operations.
10) Advances - County of Los Angeles - $519,853
The City incorporated on April 18,'1989. All services within the City continued to be provided by the County of Los Angeles. The cost of those services are
to be reimbursed by the City over a period not to exceed five years. The County is required to give the City credit for any revenue which the County retained
that was generated within the City limits during the period of time the services were provided. The cost of reimbursement shall bear interest at a rate
equivalent to the Los Angeles County treasury pool earnings rate. The outstanding balance of $519,853 at June 30, 1990 is currently in dispute. The ultimate
disposition of the advance is not known at this time. However, pursuant to GASB statement 1 it is reflected as a liability inasmuch as it is both estimatable
and probable.
11) Fund Balance/Retained Earnings Reserves
Reserves and designations segregate portions of fund balance and retained earnings that are not available spendable resources. The various reserves and
designations established as of June 30, 1990 are described below and tabulated as follows:
Reserved For:
Encumbrances
Debt Service
General Special Revenue Capital Project
Fund Funds Funds
$ 8,149 $ 20,891 $ 49,489
527,815
Total $ 535,964 S 20,891 $ 49,489
Reserve for Encumbrances - These reserves represent the portion of purchase orders awarded for which the goods or services had not yet been received at June
30, 1990. AlthougT a appropriations lapse at year-end even if encumbered, the City intends either to honor the contracts in progress or to cancel them.
Reserve for encumbrances are rebudgeted on July 1, by Council action.
Reserve for Debt Service - These reserves for Debt Service represent reserves accumulated by the City of Diamond Bar that are legally restricted to the payment
of long-term debt principal and interest amounts that mature in future years.
Disc
Date of
Years of
Amount
Beginning
New
Matured
Description
Issue
Maturity Rates of Interest
Authorized
Balance
Indebtedness
During Year
Ending Balance
Compensated Absences Payable (Note 9)
N/A
N/A N/A
N/A
$
$ 7,962
$
$ 7,962
Advances - County of L. A. (Note 10)
4-18-89
** *
N/A
610,695
90,842
519,853
Totals
$ 610,695
$ 7,962
SY 90,842
$ 527,815
* - Los Angeles County Treasury Pool Rate
** - As Monies Become available
9) Compensated Absences - $7,962
After twelve months continuous service with the City, full time employees receive from ten (10) to twenty (20) days vacation each year depending upon length of
service. Vacation can be accumulated up to a maximum of 20 days. Unused vacation may be cashed in upon leaving employment with the City. City employees receive
3.08 hours of sick leave per pay period and can be accumulated up to a maximum of 144 hours. Unused sick leave may be cashed in upon leaving employment at the rate
of 1/2 the employee's current rate of pay. The liability for compensated absences will be funded, when required, from future City operations.
10) Advances - County of Los Angeles - $519,853
The City incorporated on April 18,'1989. All services within the City continued to be provided by the County of Los Angeles. The cost of those services are
to be reimbursed by the City over a period not to exceed five years. The County is required to give the City credit for any revenue which the County retained
that was generated within the City limits during the period of time the services were provided. The cost of reimbursement shall bear interest at a rate
equivalent to the Los Angeles County treasury pool earnings rate. The outstanding balance of $519,853 at June 30, 1990 is currently in dispute. The ultimate
disposition of the advance is not known at this time. However, pursuant to GASB statement 1 it is reflected as a liability inasmuch as it is both estimatable
and probable.
11) Fund Balance/Retained Earnings Reserves
Reserves and designations segregate portions of fund balance and retained earnings that are not available spendable resources. The various reserves and
designations established as of June 30, 1990 are described below and tabulated as follows:
Reserved For:
Encumbrances
Debt Service
General Special Revenue Capital Project
Fund Funds Funds
$ 8,149 $ 20,891 $ 49,489
527,815
Total $ 535,964 S 20,891 $ 49,489
Reserve for Encumbrances - These reserves represent the portion of purchase orders awarded for which the goods or services had not yet been received at June
30, 1990. AlthougT a appropriations lapse at year-end even if encumbered, the City intends either to honor the contracts in progress or to cancel them.
Reserve for encumbrances are rebudgeted on July 1, by Council action.
Reserve for Debt Service - These reserves for Debt Service represent reserves accumulated by the City of Diamond Bar that are legally restricted to the payment
of long-term debt principal and interest amounts that mature in future years.
Disc
CITY OF DIAMOND BAR CALIFORNIA
NOTES O F NANCIAL STATEMENTS
Year Enaed June 3T,71990
12) Fund Balance Deficit - $244,432
The deficit fund balance in the State Park Grant Fund is anticipated to be eliminated with future intergovernmental revenues.
13) Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City
employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination,
retirement, death or unforeseeable emergency.
All amounts of compensation deferred under this plan, all property and rights purchased with these amounts and all income attributable to those amounts, property
or rights are (until made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions
of benefits under the Plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general
creditors of the City in the amount equal to the fair market value of the deferred account for each participant.
The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
The following is a summary of the increases and decreases of the fund for the year ended June 30, 1990:
Fund Assets, Beginning of Year $ -0-
Deposits 16,020
Interest 772
Administrative Expenses (95)
Fund Assets, End of Year L16 697
14) City Employees Retirement Plan (Defined Benefit Pension Plan)
Plan DescriDtion
The City of Diamond Barcontributes to the California Public Employees Retirement System (PERS), an agent multiple -employer public employee retirement system
that acts as a common investment and administrative agent for participating public entities within the State of California. The total covered payroll for
employees participating in the System for the year ended June 30, 1990 was $202,657. The total payroll for the year was $415,468.
All full-time and part-time benefitted City employees are eligible to participate in the System. Part-time non -benefitted hourly employees do not participate
in the system. 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 that varies from 1.092 percent at age fifty to a maximum of 2.418 percent at age sixty-
three of the three highest years' salary for non -safety employees for each year of credited service. The system 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
The City makes the contributions required of City employees on their behalf and for their account. The rate is set by statute and therefore remains unchanged
from year to, year. The present rate for local miscellaneous members is 7% of their annual wages.
The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis 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 the
system 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 the System.
The pension benefit obligation was computed as part of an actuarial valuation performed as of August 30, 1989. 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 5.50 percent a year compounded annually, attributable to inflation, and across the board real salary increases, (c) additional projected salary increases
of 1.50 percent a year, attributable to seniority/merit, and (d) no postretirement benefit increases.
The total unfunded pension benefit obligation applicable to the City employees was $19,207 at August 30, 1989.
Actuarially Determined Contribution Requirements and Contribution Made
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are expected
to be earned in the future as well as those already accrued.
According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from date
-12-
CITY OFDIAMOND BAR CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 1990
14) City Employees Retirement Plan (Defined Benefit Pension Plan) (Continued)
Actuarial v Determined Contra ution Requirements and Contribution Made (Continued)
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 2008 for prior service benefits; in the year 2019 for 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 the system for 1990 of $28,080 was made in accordance with actuarially determined requirements computed through an actuarial valuation
performed as of August 30, 1990. The contribution consisted of (a) $27,823 normal cost (13.729 percent of current covered payroll) and (b) $257 amortization
of the unfunded actuarial accrued liability (0.127 percent of current covered payroll). The contributions were paid entirely by the City.
Trend Information
Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information may be found
in the California Public Employees Retirement System Annual Report. Until ten years of data are available, as many years as are available will be presented.
Within the City's financial statement, three years of historical trend information are required. Until three years of data are available, as many years as are
available should be presented. Since this is the first year the City participated in PERS, only 1989-90 is required. However, actuarial information for 1989-90
is unavailable. Therefore, the trend information for 1989-90 is summarized as follows:
1989 - 90
Net assets available for benefits expressed as a percentage of the
pension benefit obligation
Unfunded (assets in excess of) pension benefit obligation, expressed
as a percentage of annual covered payroll
Employer contributions expresged as a percentage of annual covered
payroll. These contributions were made in accordance with 13.856%
actuarially determined requirements
*Unavailable
15) ContinKencies
As of June 30, 1990, in the opinion of the City Administration, there are no outstanding matters which have a significant effect on the financial position of
the funds of the City.
-13-
CITY OF DIAMOND BAR CALIFORNIA
GEN
STATEMENT OF EGET AND ACTUAL
Year Ended June 30, 1990 SCHEDULE 1
-14-
Budget
Actual
Property Taxes
$ 929,600
$ 929,570
Sales Tax
1,954,400
1,954,394
Transient Occupancy Taxes
138,500
138,513
Franchises
388,000
388,060
Real Property Transfer Taxes
86,800
86,864
Licenses and Permits
840,900
841,525
Fines and Forfeits
49,600
49,599
Interest
317,300
317,293
Motor Vehicle In Lieu Fees
2,588,300
2,588,353
Homeowners' Property Tax Relief
22,100
22,185
Cigarette Taxes
87,700
87,747
Miscellaneous Revenue From Other Governments
450
485
Other Revenues
8,300
8,313
Total
$7,411,950
$7,412,901
-14-
City Council
City Attorney
City Manager
City Clerk
Finance
Community Promotion
Planning
Building and Safety
Engineering
General Government
Insurance
Police
Fire
Public Works
Community Services
Parks
Capital Outlay
Debt Service
Total
CITY OF DIAMOND BAR CALIFORNIA
GENERAL
STATEMENT OF EXP ND URES - UDGET AND ACTUAL
Year fnea June 30, 1990
Imm
SCHEDULE 2
Budget
Actual
$ 74,550
$ 74,143
159,300
158,435
146,938
146,264
140,477
139,307
105,147
104,609
9,000
8,962
140,250
139,742
488,300
488,301
153,000
152,854
374,250
375,265
171,900
171,861
3,055,300
3,047,251
188,136
188,111
757,425
756,771
55,300
52,364
302,855
305,240
.200,600
200,237
92,628
90,842
$6,615,356
6 600 559
CITY OF DIAMOND BAR CALIFORNIA
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
June 30, 1990
SCHEDULE 3
Traffic Gas Prop. A Local State Park Totals - June 30
Assets Safety Tax Transit m Transportation Grant A.D. No. 38 A.D. No. 39 A.D. No. 41 1990 1989
Cash $ $ 883,642 $ 352,893 $ $ $ 236,980 $ 242,387 $ 78,581 $1,794,483 $ 455,819
Accounts Receivable 48,363
Accrued RevenueReceivable 195,134
Due From Other Governments 11.429 9,074 4_,_047 2,358 26,908
Total Assets$ 11,429 S 883,642 $ 352,893 S -0- $ -0- S$ 2® $ 246,434 S 80,939 $1,821,391 L_699&316
Liabilities and Fund Balances
Accounts Payable $ $ $ $ $ $ 225,163 $ 4,455
Accrued Liabilities
Due to Other Funds 11,429 244,432
Total Liabilities 11,429 -0- -0- -0- 244,432 225,163 4,455
Fund Balances
Reserved for Encumbrances 20,891
Unreserved - Designated 883,642 (244,432) 241,979
Total Fund Balances -0- 883,642 352,893 -0- (244,432) 20,891 241,979
Total Liabilities and
Fun Balances S 11,429 S 883,642 $ 352,893 $ -0- $ -0- $ 246,054 $ 246,434
-16-
$ 12,355 $ 241,973 $
11,848
255,861
12,355 497,834 11.848
20,891
68,584 1,302,666 687,468
68,584 1,323,557 687,468
S $1,8 S 6
[KIN
S
SCHEDULE 4
Expenditures
General Government -
Nondepartmental 549,797
Public Works
Capital Outlay 517,035
Total Expenditures -0- -0- 549,797 -0- 517,035
Excess of Revenues Over
(Under) Expen itures 147,352 1,052,656 159,628 125 (290,932)
Other Financing Sources
Uses
Operating Transfers In (Out) (149,298) (410,750) (215) (1,779)
Excess of Revenues and
other Sources Over
(Under) Expenditures
and Other Uses (1,946) 641,906 159,413 (1,654)
Fund Balances - Be innin
549,797
86,679 115,723 97,412 299,814 11,848
284,993 802,028
371.672 115,723 97,412 1,651,639 11,848
(41,180) 145,459 25,023 1,198,131 640,968
(290,932) (41,180) 145,459
of Year 1,946 241,736 193,480 1,654 46,500 62,071 96,520
Fund Balances - End of
Year
-17-
(562,042) 46,500
25,023 636,089 687,468
43,561 687,468 -0-
$ $1,323,557 S 687,468
Totals
-
Traffic
Gas
Prop. A
Local State Park
Year Ended June 30
Revenues
Safety
Tax
Transit
Transportation Grant
A.D. No. 38
A.D. No. 39
A.D. No. 41
1990
1989
Special Assessments
$
$
$
$ $
$ 209,322
$ 101,728
$ 98,404
$ 409,454 $
Intergovernmental Revenues
985,182
687,628
225,000
108,639
146,443
19,944
.2,172,836
650,194
Fines and Forfeits
144,253
144,253
1,946
Use of Money and
Property
3,099
67,474
21,797
125 1,103
12,531
13,011
4,087
123,227
676
Total Revenues
147,352
1,052,656
709,425
125 226,103
330,492
261,182
122,435
2,849,770
652,816
Expenditures
General Government -
Nondepartmental 549,797
Public Works
Capital Outlay 517,035
Total Expenditures -0- -0- 549,797 -0- 517,035
Excess of Revenues Over
(Under) Expen itures 147,352 1,052,656 159,628 125 (290,932)
Other Financing Sources
Uses
Operating Transfers In (Out) (149,298) (410,750) (215) (1,779)
Excess of Revenues and
other Sources Over
(Under) Expenditures
and Other Uses (1,946) 641,906 159,413 (1,654)
Fund Balances - Be innin
549,797
86,679 115,723 97,412 299,814 11,848
284,993 802,028
371.672 115,723 97,412 1,651,639 11,848
(41,180) 145,459 25,023 1,198,131 640,968
(290,932) (41,180) 145,459
of Year 1,946 241,736 193,480 1,654 46,500 62,071 96,520
Fund Balances - End of
Year
-17-
(562,042) 46,500
25,023 636,089 687,468
43,561 687,468 -0-
$ $1,323,557 S 687,468
Assets
Cash
Due From Other Governments
Total Assets
Liabilities and Fund Balance
Liabilities
Accounts Payable
Total Liabilities
Fund Balance
Reserved for Encumbrances
Unreserved - Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF DIAMOND BAR CALIFORNIA
Ar
G ANC SHEET
C PROJECT S
June 30, 199U
Grand Chino Hills Traffic
Avenue Parkway Mitigation
$ 74,012 $ 238,517 $
325.978
$ 74,012 $ 238,517 $ 325,978
$ 24,523 $ $
24,523 -0- -0-
49,489
238,517 325,978
49,489 238,517 325,978
$ 74,012
1_238,517 $ 325,978
-18-
SCHEDULE 5
Totals - June 30
990 989
$ 312,529 $
325,978
$ 638,507 $ -0-
$ 24,523
24,523 -0-
49,489
564,495
613,984 -0-
$ 6381507 $ -0-
Revenues
Intergovernmental Revenues
Total Revenues
Expenditures
Public Works
Capital Outlay
I
Total Expenditures
Excess of Revenues Over (Under) Expenditures
i
-- Fund Balance - Beginning of Year
i Prior Period Adjustment
Fund Balances - Beginning of Year as Restated
Fund Balances - End of Year
CITY OF DIAMOND
,J "L) l:tiii Ubb 1N ZULU) blU, Ur,
FUNDS
1990 SCHEDULE 6
ORM
Totals -
Grand
Chino Hills
Traffic
Year Ended
June 30
Avenue
Parkway
Mitigation
1990
1989
$ 100,000
$ 300,000
$
$ 400,000
$
100,000
300,000
-0-
400,000
-0-
25,727
61,483
87,210
24,784
24,784
50,511
61,483
-0-
111,994
-0-
49,489
238,517
-0-
288,006
-0-
-0-
-0-
-0-
-0-
325,978
325,978
325,978
325,978
$ 49,489
$ 238,517
S 325,978
$ 613,984
$ -0-
ORM