HomeMy WebLinkAboutCAFR - FY 2006-07CITY OF DIAMOND BAR, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2007
Prepared by:
FINANCE DEPARTMENT
Linda G Magnuson
Director of Finance
CITY OF DIAMOND BAR
TABLE OF CONTENTS
June 30, 2007
Page
Number
INTRODUCTORY SECTION:
Letter of Transmittal i - vi
GFOA Certificate of Achievement for Excellence in Financial Reporting vii
Organization Chart viii
List of Principal Officials ix
FINANCIAL SECTION:
Independent Auditors' Report 1-2
Management's Discussion and Analysis (Required Supplementary Information) 3-11
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 13
Statement of Activities 14
Fund Financial Statements:
Governmental Funds: 15
Balance Sheet 16-17
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets 19
Statement of Revenues, Expenditures and Changes in Fund Balances 20-21
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of Activities 22
Proprietary Funds:
Statement of Net Assets 23
Statement of Revenues, Expenses and Changes in Fund Net Assets 24
Statement of Cash Flows 25
Notes to Basic Financial Statements 27-49
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TABLE OF CONTENTS
(CONTINUED)
June 30, 2007
FINANCIAL SECTION (CONTINUED):
Required Supplementary Information:
Page
Number
Budgetary Comparison Schedules: 51
General Fund 52
Park and Facility Development Special Revenue Fund 53
Note to Required Supplementary Information 54
Supplementary Information:
Other Governmental Funds:
Combining Balance Sheet 55
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 57
Other Special Revenue Funds:
58-59
Combining Balance Sheet
60-61
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
62-63
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
State Gas Tax Fund
64
Proposition C Transit Fund
65
Intermodal. Surface Transportation Enhancement
Act (ISTEA) Special Revenue Fund
66
Integrated Waste Management Fund
67
Traffic Improvement Fund
68
Traffic Congestion Relief Fund
69
Air Quality Improvement Fund
70
California Law Enforcement Equipment Program (CLEEP) Fund
71
Proposition A Transit Fund
72
Community Development Block Grant (CDBG) Fund
73
Citizens Option for Public Safety (COPS) Fund
74
Asset Seizure Fund
75
Landscape Maintenance District Fund
76
Major Capital Projects Fund: 77
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Capital Improvement Fund 78
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TABLE OF CONTENTS
(CONTINUED)
June 30,2007
FINANCIAL SECTION (CONTINUED):
Supplementary Information (Continued):
Page
Number
Internal Service Funds: 79
Combining Statement of Net Assets 80
Combining Statement of Revenues, Expenses and
Changes in Fund Net Assets 81
Combining Statement of Cash Flows 82
STATISTICAL SECTION:
Description of Statistical Section Contents 83
Financial Trends:
Net Assets by Component - Last Five Fiscal Years 84-85
Changes in Net Assets - Last Five Fiscal Years 86-87
Fund Balances of Governmental Funds - Last Five Fiscal Years 88-89
Changes in Fund Balances of Governmental Funds - Last Five Fiscal Years 90-91
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 92
Direct and Overlapping Property Tax Rates - Current Fiscal Year 93
Top 10 Property Taxpayers 94
Property Tax Levies and Collections - Last Ten Fiscal Years 95
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 96
Direct and Overlapping Debt 97
Legal Debt Margin Information - Last Ten Fiscal Years 98
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years 99
Principal Employers 100
Operating Information:
Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years 101
Operating Indicators by Function - Last Ten Fiscal Years 102
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January 28, 2008
Honorable Mayor and Members of the City Council
City of Diamond Bar
Diamond Bar, California
It is a pleasure to submit the Comprehensive Annual Financial Report of the
City of Diamond Bar for the fiscal year ended June 30, 2007. This report
consists of management's representations concerning the finances of the
City. Consequently, responsibility for both the accuracy of the presented
data and the completeness and fairness of the presentation, including all
disclosures, rests with the City's management. To provide a reasonable
basis for making these representations, management of the City has
established a comprehensive internal control framework that is designed
both to protect the City's assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the City's financial
statements in conformance with generally accepted accounting principles
(GAAP). Because the cost of internal controls should not outweigh their
benefits, the City's comprehensive framework of internal controls has been
designed to provide assurance that the financial statements will be free from
misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all
material aspects.
The City's financial statements have been audited by Diehl, Evans and
Company L.L.P., a firm of certified public accountants. The goal of the
independent audit was to provide reasonable assurance that the financial
statements of the City for fiscal year ended June 30, 2007, are free of
material misstatement. The independent audit involved examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial
statement presentation. The independent auditor concluded based upon the
audit that there was a reasonable basis for rendering an unqualified opinion
that the City's financial statements for the fiscal year ended June 30, 2007,
were fairly presented in conformity with GAAP. The independent auditor's
report is presented as the first component of the financial section of this
report.
The independent audit of the financial statements of the City of Diamond Bar was part of a
broader, federally mandated "Single Audit" designed to meet the special needs of federal
grantor agencies. The standards governing Single Audit engagements require the independent
auditor to report not only on the fair presentation of the financial statements, but also on the
audited City's internal controls and legal requirements involving the administration of federal
awards. These reports are available in the City's separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be
read in conjunction with it. The City's MD&A can be found immediately following the report
of the independent auditors.
PROFILE OF THE CITY OF DIAMOND BAR
The City, incorporated in 1989, is located at the junction of the 57 and 60 freeways. As a
result, the City of Diamond Bar is at the hub of the Los Angeles basin transportation
network. A twenty-five mile radius encompasses Pasadena, downtown Los Angeles, Long
Beach, Irvine and Riverside. Diamond Bar is a relatively young residential community of
about 60,200, situated among the meandering hills and valleys of Brea Canyon. Many
desired services can be found in Diamond Bar's shopping and business centers.
Recreational opportunities within the City include more than 70 acres of developed park
facilities, hiking trails, a new community center, an 18 -hole public golf course and
370 acres of undeveloped publicly owned open space.
The City has operated under the council-manager form of government since incorporation.
Policy making and legislative authority are vested in a five member City Council. The City
Council is responsible, among other things, for passing ordinances, adopting the budget,
appointing committees and task forces, and hiring both the City Manager and City
Attorney. The City Manager is responsible for overseeing the day -to day operations of the
City, and for appointing the heads of the various departments. The Council is elected on a
non-partisan basis. Council members serve four-year staggered terms, with elections held
every other year. Each December, the City Council selects a mayor and mayor pro tem
from its membership.
The City of Diamond Bar is a contract city and as such contracts for many of its services.
This includes police services, building and safety services, engineering, road maintenance
and landscape maintenance.
The Los Angeles County Fire District provides fire protection, which is independent of the
City. Funds are collected through property tax bills and are disbursed directly to the Los
Angeles County Fire District by the Los Angeles County Tax Collector's Office.
Water services for the City are provided by the Walnut Valley Water District. Refuse
collection is provided by private waste collection companies. Additionally, schools are
provided by both the Walnut Valley Unified School District and the Pomona Unified
School District. Accordingly, none of these activities are included in this report.
During the last few years, the City of Diamond Bar's economy has seen a slight
improvement. This fiscal year was no exception as illustrated by higher property tax
revenues. To spite this growth, the erosion of the City's sales tax base is a major concern to
the City. The City has, however, built General Fund reserves to fill in any gaps created by
the economy or changes in State funding.
Last fiscal year, the City saw the welcome addition of a brand new Target store at the
intersection of Grand Avenue and Golden Springs Drive. The Target -anchored shopping
center located at what is considered one of the City's prime retail locations is set to receive
yet another boost this coming fiscal year when Chili's restaurant fills one of its two vacant
pad sites.
The City also saw the unfolding of a highly anticipated plan to revitalize the 221,000 square
foot Country Hills Towne Center located at the southern end of town. Upon completion,
the center will feature an upscale Korean -American grocery retailer, a Quiznos, a drive-thru.
Starbucks and several other new businesses.
The City's population also expanded in fiscal year 06-07. The city welcomed new families
who moved into newly constructed homes as part of the Brookfield project located on a
hillside behind the new Target store. The project will see even more homes constructed in
the coming fiscal year for atotal of 180 condominiums. And even more condominiums and
single family homes are on the drawing board for the near -future.
In fiscal year 07-08, the City will continue to explore opportunities to expand its sales tax
and property tax base with new development opportunities in its commercial areas and the
possible annexation of land located within the City's sphere of influence. Development
opportunities in the City's commercial areas include the Walnut Valley Trailer Park site;
site "D"; and the K -Mart Property.
The City's future economic health is being secured by building healthy reserves through
fiscally conservative budgets and policies in addition to aggressively pursuing economic
development opportunities.
EXZ,�N�
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, 2006. 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, with
contents that conform to program standards. The CAFR must satisfy both generally
accepted accounting principles and applicable legal requirements.
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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 twelve consecutive years (fiscal
years ended 1995 through 2006). We believe our current report continues to meet the
Certificate of Achievement Program's requirements and we are submitting it to GFOA to
determine its eligibility for another certificate.
REPORTING ENTITY AND ITS SERVICES
This Comprehensive Annual Financial Report includes all funds of the City. The City
directly provides a limited range of services and contracts for several other services. The
City's significant reliance on contracted services has the benefit of reducing expenses to the
citizens of the City of Diamond Bar while simultaneously providing the City with a high
degree of flexibility in responding to changing economic conditions. Contracted services
include police protection, building and safety, street maintenance, park maintenance, capital
improvement projects, animal control, attorney services and engineering. Staff provided
services include: community development (which includes planning, economic
development, building and safety management, and neighborhood improvement), public
works (which includes engineering, capital projects administration, street maintenance
contract management, traffic and transportation matters, engineering contract management,
and solid waste contract management), community services (which includes senior
services, park maintenance, recreation services, community center operation, and landscape
maintenance), community relations, subsidized transit ticket sales, grant administration,
financial management, and administrative management. All of these activities are included
in this report.
Cash Management
The City invests temporarily idle funds in accordance with the Government Code and the
investment policy approved annually by the City Council. During fiscal year 06-07, most
of the City funds were invested in the Local Agency Investment Fund (LAIF), which is
administered by the State Treasurer's Office. In addition to LAIF, the City diversified its
investment portfolio by also investing in U.S. Government Sponsored Enterprise Securities
and Money Market Mutual Fund accounts that are in accordance with the City's investment
policy. The City manages all of its cash and investments on a pooled basis. Interest
earnings are allocated to the various funds based on their share of cash and investment
balances.
Risk Management
The City of Diamond Bar is a member of the California Joint Powers Insurance Authority
(CJPIA) for the purpose of pooling its general liability losses and claims with the other
member agencies. The City is charged for the first $30,000 of each claim. Claims above
$30,000 are shared by all the member agencies up to a maximum of $50,000,000 per
occurrence.
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REPORTING ENTITY AND ITS SERVICES (CONTINUED)
Risk Management (Continued)
The City belongs to the CJPIA's Workers' Compensation Insurance Program. The
administration of the workers' compensation program is similar to that of the authority's
liability program. The City is charged for the first $50,000 of each claim. Costs from
$50,001 to $100,000 per claim are pooled based on the member's losses under its retention
level. Costs between $100,001 and $2,000,000 are pooled based on payroll. Costs between
$2,000,000 and $5,000,000 are paid by excess insurance purchased by the CJP1A. Costs in
excess of $5,000,000 are pooled based on payroll.
Additionally, the City has all risk property insurance through the Authority. The City's
property is currently insured according to a schedule of covered property submitted to the
Authority by the City. There is a $5,000 per loss deductible. Premiums for the coverage
are paid annually.
The City has also established a self-insurance internal service fund to cover the City's share
of any potential losses not covered by the CJPIA. The City Council established a policy of
annually transferring $100,000 to the fund to create a self-insurance reserve. Policy states
that when the reserve reaches $1,000,000, the reserves are deemed to be sufficient. No
transfer was necessary this fiscal year, since the reserves reached that milestone in fiscal
year 1998-99. The self-insurance reserve at June 30, 2007 was $1,103,898.
Defined Benefit Pension Plan
The City has contracted with the California Public Employees Retirement System (PERS)
to provide retirement, disability, death and survivor benefits for all eligible full and part-
time City employees. The pension benefit obligation varies from year to year and is
computed as part of an actuarial valuation. For the three years ended June 30, 2005, 2006,
and 2007 the employer contribution to PERS was 15.06%, 11.148% and 11.051%
respectively, of the annual covered payroll. The total contribution paid by the City included
employer contributions as well as member contributions for which the City is contractually
obligated to pay on behalf of its employees. The City's total contribution to the system
including both the employer and employee's contribution was $562,411 for fiscal
year 2006-07.
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Acknowledgements
The preparation of this Comprehensive Annual Financial Report was made possible by the
dedicated service of the City's Finance Department staff, and through the cooperation of the
entire City staff. Each staff member has my sincere appreciation for the contributions made
in the preparation of this Report.
I would also like to thank our independent auditor, Diehl, Evans and Company, L.L.P., for
its expertise and advice in the preparation of the City's Comprehensive Annual Financial
Report.
In closing, without the leadership and support of the City Council of the City of Diamond
Bar, the preparation of this Report would not have been possible.
Sincerely,
City
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Presented to
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2006
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 fmancial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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Mayor
Mayor Pro Tern
Councilmember
Councilmember
Councilmember
City Manager
Assistant City Manager
City Clerk
Director of:
Community Services
Community Development
Finance
Information Systems
Public Works
Steve Tye
Jack Tanaka
Wen Chang
Ron Everett
Carol Herrera
James DeStefano
David Doyle
Tommye Cribbins
Bob Rose
Nancy Fong
Linda Magnuson
Ken Desforges
David Liu *
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DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
MICHAEL R. LUDIN, CPA
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W. A CPA
NTTIN P. PATELEL, CPA
ROBERT J.CALLANAN,CPA
*PHILIP H. HOLTKAMP, CPA
2121 ALTON PARKWAY, SUITE 100 *THOMAS M. PERLOWSKI, CPA
IRVINE, CALIFORNIA 92606-4956 *HARVEY J. SCHROEDER, CPA
(949) 399-0600 • FAX (949) 399-0610 KENNETH NT , CPA
*WILLIAM C.. PENTZ, CPA
www.dielilevans.com p
January 28, 2000 *A PROFESSIONAL CORPORATION
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and City
Council of the City of Diamond Bar
Diamond Bar, California
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the City of Diamond Bar, California, as of and
for the year ended June 30, 2007, which collectively comprise the City's basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the City of Diamond
Bar's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Diamond Bar, California, as of June 30, 2007, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then
ended in conformity with accounting principles generally accepted in the United States of America.
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OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598
(760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890
In accordance with Government Auditing Standards, we have also issued our report dated
January 28, 2008 on our consideration of the City of Diamond Bar's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
The management's discussion and analysis and the other required supplementary information
identified in the accompanying table of contents are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally accepted in
the United States of America. We have applied certain limited procedures to the management's
discussion and analysis, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of this required supplementary information. However, we did not
audit the management's discussion and analysis and express no opinion on it. The budgetary
comparison schedules and related note have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Diamond Bar's basic financial statements. The introductory section,
other supplementary information and statistical section as listed in the table of contents are presented
for purposes of additional analysis and are not a required part of the basic financial statements. The
other supplementary information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion is fairly stated in all material respects in relation to
the basic financial statements taken as a whole. The introductory section and statistical section have
not been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we express no opinion on them.
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MD&A
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Management's Discussion and Analysis
June 30, 2007
As management of the City of Diamond Bar, we offer readers of the City of Diamond Bar's financial
statements this narrative overview and analysis of the financial activities of the City of Diamond Bar
for the fiscal year ended June 30, 2007. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal.
Financial Highlights
m The total revenues from all sources equaled $29,867,583.
• The total cost of all City programs equaled $26,243,880.
® The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by
$414,071,398 (net assets). Of this amount, $34,072,884 (unrestricted net assets) may be used
to meet the City's ongoing obligations to citizens and creditors.
® According to GASB34 requirements, the City's infrastructure has been fully capitalized this
fiscal year. As a result the net capital assets beginning balance has been restated.
® As of the close of the current fiscal year, the City of Diamond Bar's governmental funds
reported combined ending fund balances of $35,149,386, an increase of $3,300,361 in
comparison with the prior year. Approximately $29.9 million of that amount is available for
spending at the City's discretion. Although funds haven't been specifically reserved for
purchase or construction of a permanent City Hall, it is anticipated in the future some of these
funds will be used for that purpose.
® At the end of the current fiscal year, unreserved fund balance for the general fund was
$28,568,263, or over one and two thirds the amount of general fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Diamond Bar's basic
financial statements. The City of Diamond Bar's basic financial statements comprise three
components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government -wide financial statements — The government —wide financial statements are designed to
provide readers with a broad overview of the City of Diamond Bar's finances, in a manner similar to a
private -sector business.
The statement of net assets presents information on all of the City of Diamond Bar's assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in new assets may serve as a useful indicator of whether the financial position of the City of
Diamond Bar is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of Belated cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
See independent auditors' report.
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Nwid s 1. ENTA 10301111
Management's Discussion and Analysis
(Continued)
June 30, 2007
Overview of the Financial Statements (Continued)
Government -wide financial statements (Continued)
Both of the government -wide financial statements distinguish functions of the City of Diamond Bar
that are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user fees
and charges (business -type activities). The governmental activities of the City of Diamond Bar include
general government, public safety, highways and streets, community development, and parks and
recreation. The City of Diamond Bar currently has no business -type activities.
The government -wide financial statements include not only the City of Diamond Bar itself, but also a
legally separate financing authority. Although legally separate, the Diamond Bar Financing Authority
is included because the City is financially accountable for it.
Fund financial statements — A farad is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Diamond
Bar, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the City can be divided into
two categories: governmental funds, and proprietary funds.
Governmental Funds — Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, available at the end of the fiscal year. This information
helps to determine whether there are more or fewer financial resources that can be spent in the near
future to finance the City's programs.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long-term impacts of the City's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Diamond Bar adopts an annual appropriated budget for its general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with this
budget.
Proprietwy Funds — The type of proprietary funds that the City maintains are internal service funds
that are used to allocate costs internally among the various functions of the City. The City of Diamond
Bar uses these funds to account for its liability insurance costs and vehicle and computer replacement
costs. Because these services predominantly benefit governmental rather than business -type functions,
they have been included within governmental activities within the government -wide financial
statements.
See independent auditors' report.
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Management's Discussion and Analysis
(Continued)
June 30, 2007
Overview of the Financial Statements (Continued)
Government -wide financial statements (Continued)
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other Laformation — In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's budgetary control and accounting and
expenditures in excess of appropriations.
Government -wide Financial Analysis
As mentioned earlier, net assets may serve over time as a useful indicator of the City's financial position. The
City of Diamond Bar's assets exceeded liabilities by $414,071,398 at the close of 2007. (see Table 1).
By far the largest component of the City's net assets (91 percent) is its investment in capital assets (e.g., land,
buildings, infrastructure, machinery, equipment, and construction in progress), less the related outstanding debt
used to acquire those assets. The City of Diamond Bar uses these capital assets to provide services to its
citizens; consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Table 1
CITY OF DIAMOND DAR'S
Statement of Net Assets
Governmental Activities
2007 2006
Current and other assets $43,549,754 $39,755,482
Capital assets 388,377,190 393,183,015
Total Assets
Long-term debt outstanding
Other Liabilities
Total Liabilities
Net assets:
Invested in capital assets, net of debt
Restricted
Unrestricted
Total Net Assets
431,926,944 432,938,497
13,126,500
13,350,051
4,729,046
4,907,906
17, 855,546
18,257,957
375,216,400 380,355,385
4,782,114 4,863,977
34,072,884 29,461,178
$414,071,398 $414,680,540
Although the City's Net Assets decreased by $609,142 this year there was a significant increase the unrestricted
portion of the fixed assets. The total value of capital assets decreased due to the aging and resulting depreciation
of the City's capital assets.
See independent auditors' report.
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Management's Discussion and Analysis
(C
June 30, 2007
Financial Analysis (Continued)
At the end offiscal year 2007 the City is able to report a 15.6 percent or $4,61increase tuunrestricted net
assets from the prior fiscal year. This is an indication of the City's efforts to continually expend its resources
conservatively in anticipation of the future purchase or construction of a city hall and possible revenue
Revenues
The City's total revenues were $30.6 million, while the total cost of all programs and services was $31.3
million. Revenues this fiscal year were 23.5% higher than those of the prior year. There were increases in most
of the revenue categories. The following are highlights of some of the major differences:
Table 2
City of Diamond Bar's
Changes in Net Assets
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues
Property taxes
Transient occupancy taxes
Sales Taxes
Property Taxes inLieu ofSales Taxes
Franchise Taxes
Property transfer tax
Cthortanee
Motor vehicle in lieu
Investment Income
Other
Total revenues
Expenses:
General Government
Public Safety
Highways and Streets
Community Development
Parks, Recreation and Culture
Interest and Fiscal Charges
Total expenses
Increase innet assets
Net assets -07O1/OG
Net assets - 06/30/07
See independent auditors'
-6-
2007 2006
$6675,619 $4,818'125
6.968.824 5.281.308
1.254.314 1.150
7,727,580 6,769,553
774,757
718,889
2.935703
2.964.877
1.007.642
984.472
1.064.621
906.567
331,096
418'423
33.822
35.522
350,194
413,230
1.476.010
1.051'922
41,362
361,622
30,641,544
24,813,660
4.784,314
4,203.123
4.876/435
5/418.005
14.019,550
5.240.568
2.292.757
2,759.718
4.770.688
3.737.071
498,042
423,320
31,250,686
21,781,805
(609,142) 3,031,855
414,680,540 411,648,685
$414,071,398 $414,680,540
Management's Discussion and Analysis
(Continued)
June 30, 2007
Government -wide Financial Analysis (Continued)
• Charges for services increased this year primarily due to the receipt of traffic mitigation and
developer fees ($1.97 million) related to the construction of the Brookfield homes project
which is a project comprised of both single family homes and townhouses. In addition
rising fuel prices contributed to the increased participation in the City's discounted transit
pass program which was also a factor.
• Operating grants and contributions increased as a result of the City obtaining and using
various grants to augment City resources in the financing of various City programs and
capital improvements. The City received a contribution of $502,600 from the County to
assist with the implementation of a traffic management system. In addition to the various
grants received for capital projects, the City received two year's allocation of Traffic
Congestion Relief funds from the State. This was to make up for funds taken away several
years ago as a result of the State's budget crisis.
• This year the City received Federal Funds for the improvement of Grand Avenue. These
funds in the amount of $1,066,605 are reflected in the capital grant and contributions
category. In addition the City received for the first time in several years received park
improvement developer fees.
• The increase in property tax revenue is due the continuing rise of property values in fiscal
year 06-07.
• Sales tax was down slightly this year, however the increase in property tax in lieu of sales
tax's increase basically evened out the overall sales tax numbers. The City is mindful of
the loss of major sales tax producers and is working diligently to improve its sales tax base.
• Investment Income has increased significantly due to rising interest rates and the
diversification of the City's investment portfolio. The City continued to invest its funds in
longer term securities resulting in a higher investment yield. (see note 2)
• Miscellaneous revenue is lower this year due to the fact that in the previous year the City
received a settlement resulting from an audit of the City's cable TV franchise.
This fiscal year the City fully capitalized its infrastructure. In the financial statements the beginning
balances have been restated to reflect this. The prior year expenditures however, have not been
restated. Instead the net assets amounts have been adjusted. As a result the expenditure numbers for
fiscal year 06 do not include depreciation for all of the infrastructure assets.
• General Government was higher this year due primarily to increases in the City's Information
Technology Division. This division has been responsible for implementation of several new
computer systems resulting in increases in computer maintenance contracts and project
management costs. Another factor in the increase in General Government is due to the
increased cost of the lease paid to the Public Financing Authority for the Diamond Bar Center.
This lease amount is based on the debt service due on the variable rate lease revenue bonds that
were issued to build the Center. Since interest rates have been rising, so has this expenditure.
• There was a decrease in Public Safety expenditures primarily due to the reclassification of the
Building and Safety expenditures to the Community Development category.
• As mentioned earlier the numbers for the previous fiscal year does not include depreciation for
all infrastructure assets. This has created huge differences in the Highways and Streets and
Parks, Recreation and Culture categories. This year the City completed two significant street
rehabilitation projects also causing arise in Streets and Highway category.
See independent auditors' report.
-7-
W) 1 1 •�','
Management's Discussion and Analysis
(Continued)
June 30, 2007
Government -wide Financial Analysis (Continued)
® The decrease in Community Development is primarily due to the fact that last fiscal year the
City purchased land for future Economic Development purposes. With the exception of
Building and Safety, expenditures were slightly higher overall. Last year saw a spike in
Building and Safety revenues due to the issuance of permits for a large housing tract.
® As mentioned earlier rising interest rates on the outstanding variable rate lease revenue bonds
caused an increase in Interest and Fiscal Charges.
Financial Analysis of the City's Funds
As noted earlier the City of Diamond Bar uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements.
Governmental funds. The focus of the City of Diamond Bar's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City's financing requirements. In particular, unreserved fund balance may
serve as a useful measure of a City's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Diamond Bar's governmental funds reported
combined ending fund balances of $35,149,386, an increase of $3,300,361 in comparison with the
prior year. Of this amount, there is $4,095,466 reserved to liquidate contracts and purchase orders
outstanding at the end of the year.
The general fund is the chief operating fund of the City of Diamond Bar. At the end of the current
fiscal year, the unreserved fund balance of the general fund was $28,568,263, while the total fund
balance reached $30,461,550. As a measure of the general fund's liquidity, it may be useful to
compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved
fund balance represents 169.2% of total general fund expenditures, while total fund balance represents
180.4% of the same amount.
Overall the fund balance of the City of Diamond Bar's general fund increased by $4,047,934 during
the current year. Since the City's incorporation, the City has been fiscally conservative contributing to
healthy fund balance reserves. Other factors contributing to this growth are as follows:
® Property tax revenue increased due the unprecedented rise in property values within the
Southern California region and a favorable real estate market.
® Some of the revenues received from the State for Motor Vehicle in Lieu fees are now based on
an allocation of property taxes based on property values. Previously it had been allocated
based on population. As a result since the City's property values have increased so has this
revenue source.
® Traffic mitigation and development fees were received to fund future traffic improvements and
economic development activities.
® Rents and Concessions continued rise due to the popularity of the City's park facilities
including the Diamond Bar Center.
® Investment revenue from higher interest rates and higher cash balances in the General Fund
contributed to the growth of the General Fund as well.
See independent auditors' report.
-8-
Management's Discussion and Analysis
(Continued)
June 30, 2007
Financial Analysis of the City's Funds (Continued)
Governmental funds (Continued).
Fund balance in the City's Park and Facility Development Fund has been derived primarily from the
receipt of developer related fees which have been collected for the purpose of improving the City's
parks and facilities. The fund ended the year with a fund balance of $1,708,275, which is a decrease of
$117,440. This change in fund balance is due to the fact that $527,397 was used to assist in funding
four different park and facility improvement projects. The improvements ranged from improving ball
fields for the City's use at a local middle school to making improvements to the city owned Sycamore
Canyon Park.
The Capital Projects Fund ended the year with a negative fund balance of $1,741,343 as opposed to
$1,086,021 last year. Ideally this fund should carry a zero fund balance. Capital project expenditures
are accounted for in this fund along with their offsetting revenues and transfers. Due to revenue and
expenditure accruals, it is not unusual for the fund to carry a negative balance since many of the capital
improvement projects are funded with reimbursable grants.
General Fund Budgetary Highlights
Although original revenue budget projections were increased during the year by 5.75% actual revenues
exceeded expectations by another 14.4%. In all but one category actual revenues exceeded
expectations.
The General Fund taxes category include property taxes, sales tax, franchise tax and property transfer
tax. These revenues exceeded expectations by $481,780. The variance between the amount budgeted
and the amount receive is due to the fact that the City has traditionally budgeted revenues
conservatively without building a lot of growth into the budget. This along with the economic growth
caused the difference between the budget and actual numbers. The FY07-08 budget has been created
to reflect more realistic revenue projections.
The City received a contribution from the County which had not been budgeted. This contribution was
for the development of a transportation management system. It was questionable as to when and if the
City would receive the funding so therefore it was not budgeted prior to its receipt.
The development fees received from the Brookfield housing tract came in sooner than anticipated. As
a result actual revenues were much higher than anticipated.
The investment income revenue estimate was much higher than anticipated due to higher investment
yields and cash balances.
General Fund expenditures for FY06-07 were anticipated to be $19,343,007 according to the amended
budget numbers. The actual expenditures equaled $16,884,828 or $2,458,179 less than anticipated.
Most of the expenditure categories came in under budget. The City also experienced a turnover in a
few staff positions resulting in salary savings in several departments. As a result of this turn over in
staff some of the projects budgeted had to be postponed until a later date. In many cases the projects
were encumbered at the end of the fiscal year or simply re -budgeted in fiscal year 07-08. Contract
commitments in the form of encumbrances equaled $1.1 million at the end of the fiscal year.
See independent auditors' report.
-9-
Management's Discussion and Analysis
(Continued)
June 30, 2007
Capital Asset and Debt Administration
Capital assets - The City of Diamond Bar's investment in capital assets for its governmental activities as of
June 30, 2007 amounts to $388,377,190 (net of accumulated depreciation). This investment in capital assets
includes land, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and
construction in progress. The total decrease in the City's investment in capital assets was approximate 1.3%
from the previous year.
Table 3
City of Diamond Bar
Capital Assets
(net of depreciation)
Land
Right of Way
Buildings and Improvements
Furniture and Fixtures
Vehicles & Equipment
Infrastructure
Construction in Progress
2007
2006
$6,206,190
$6,206,190
256,536,095
256,536,095
16,502,917
15,662,267
8,815
11,875
632,903
539,624
107,168,051
111,279,212
1,322,219
2,947,753
$388,377,190
$393,183,016
The decrease in Furniture and Fixtures was due to the depreciation of existing assets.
The increase in Vehicles and Equipment is primarily a result of the purchase of several pieces of equipment to
either improve efficiency or provide new programs to the citizens of Diamond Bar. The highlights are:
® Outdoor screen and projection equipment to provide free summer movies in the park.
® New computers for the computer resource room at the Diamond Bar Center.
® Equipment purchased to improve operations and efficiency included a color copier, folding machine,
postage machine, high speed scanner and the replacement of several computer servers.
The overall decrease in the value of the City's capitalized assets is due to the depreciation of the City's
infrastructure. Significant additions to capital assets include:
o Traffic signal improvements to the intersection of Grand and Diamond Bar Blvd.
® Sycamore Canyon Park benefited from a major facelift which includes new ADA compliant access
ramps, playground equipment, security lights, picnic tables, drinking fountains, barbecues and benches.
Construction in progress at the end of the year included twenty two projects in various stages of construction.
There were five park improvement projects in progress totaling $123,904. The rest of the projects were a
variety of traffic signal improvements and parkway improvements either in the design phase or under
construction at the end of the year. These projects totaled $1,198,315 at the end of the year.
Additional information on the City's capital assets can be found in note 4.
See independent auditors' report.
-10-
Management's Discussion and Analysis
(Continued)
June 30, 2007
Capital Asset and Debt Administration (Continued)
Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt
equaled $13,491,855. The following table shows the breakdown of the debt outstanding.
Table 4
City of Diamond Bar
Outstanding Long Term Debt at Year-end
Variable Rate Lease Revenue Bonds
(backed by the Public Financing
Authority) 13,280,000
Unamoritzed Bond Discount (119,210)
Compensated Absences (backed by
the City) 331,065
$13,491,855
Economic Factors and Next Year's Budgets and Rates
While the City maintains a diverse and upscale housing stock, the City's economy is equally dependent
on commercial and retail revenues. The City's concentration on maintaining and attracting new
business clientele is of utmost importance.
The City's 2007-2008 budget is a fiscally conservative budget. As a result of the slow down in the
economy anticipated revenues in the General Fund show a slight rise with the exception of
development related fees. At the same time, the expenditure budget is slightly less than last year's
appropriations. The City has made a conscientious decision to use some general fund balance reserves
for economic development purposes. As a result, the FY08 budget includes an appropriation for
economic development. It is anticipated that these efforts will continue to be rewarded in the near
future with the development of several new retail spaces.
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a
general overview of the City of Diamond Bar's finances and to show the City's accountability for the
money it receives. If you have questions about this report or need additional financial information,
contact the City's Finance Department, at the City of Diamond Bar, 21825 Copley Drive, Diamond
Bar, California 91765.
See independent auditors' report.
-11-
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-12-
PULL THIS PAGE AND INSERT TAB FOR
GOVERNMENT WIDE FINANCIAL STATEMENTS
PULL THIS PAGE
STATEMENT OF NET ASSETS
June 30, 2007
ASSETS:
Cash and investments (Note 2)
Accounts receivable
Interest receivable
Due from other governments
Due from employees
Notes receivable
Deferred charges
Restricted assets:
Cash and investments with fiscal agents (Note 2)
Capital assets, not depreciated (Note 4)
Capital assets, depreciated, net (Note 4)
TOTAL ASSETS
LIABILITIES:
Accounts payable
Accrued payroll
Interest payable
Deposits payable
Retentions payable
Due to other governments
Advance from other governments
Noncurrent liabilities (Note 5):
Due within one year
Due in more than one year
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for:
Debt service
Capital projects
Specific programs
Unrestricted
TOTAL NET ASSETS
Governmental
Activities
$ 38,611,382
248,237
397,093
3,084,997
4,414
186,854
547,517
469,260
264,064,504
124,312,686
431,926,944
1,998,968
93,816
42,940
1,140,635
393,715
506,763
186,854
365,355
13,126,500
17,855,546
375,216,400
321,747
3,446,872
1,013,495
34,072,884
$ 414,071,398
See independent auditors' report and notes to basic financial statements.
-13-
CITY OF DIAMOND BAR
STATEMENT OF ACTIVITIES
For the year ended June 30, 2007
Functions/programs
Expenses
Governmental activities:
Net (Expense)
General government
$ 4,784,314
Public safety
4,876,435
Highways and streets
14,019,550
Community development
2,292,757
Parks, recreation
Program Revenues
and culture
4,779,588
Interest on long-term debt
498,042
Total governmental
activities $ 31,250,686
1,385,788 311,376 197,925 (2,884,499)
- - (498,042)
$ 6,675,619 $ 6,968,824 $ 1,254,314 (16,351,929)
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Property taxes in lieu of sales taxes
Franchise taxes
Property transfer tax
Other taxes
Unrestricted motor vehicle in lieu
Investment income
Otherrevenues
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR,
AS RESTATED (NOTE 12)
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-14-
7,727,580
774,757
2,935,703
1,007,642
1,064,621
331,096
33,822
350,194
1,476,010
41,362
15,742,787
(609,142)
414,680,540
$ 414,071,398
Net (Expense)
Revenue and
Changes in
Program Revenues
Net Assets
Charges
Operating
Capital
for
Grants and
Grants and
Governmental
Services
Contributions
Contributions
Activities
$ 262,541
$ 4,390
$ -
$ (4,517,383)
1,512,195
233,558
-
(3,130,682)
3,493,798
5,687,380
1,056,389
(3,781,983)
21,297
732,120
-
(1,539,340)
1,385,788 311,376 197,925 (2,884,499)
- - (498,042)
$ 6,675,619 $ 6,968,824 $ 1,254,314 (16,351,929)
General revenues:
Taxes:
Property taxes
Transient occupancy taxes
Sales taxes
Property taxes in lieu of sales taxes
Franchise taxes
Property transfer tax
Other taxes
Unrestricted motor vehicle in lieu
Investment income
Otherrevenues
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR,
AS RESTATED (NOTE 12)
NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-14-
7,727,580
774,757
2,935,703
1,007,642
1,064,621
331,096
33,822
350,194
1,476,010
41,362
15,742,787
(609,142)
414,680,540
$ 414,071,398
PULL THIS PAGE AND INSERT TAB FOR
FUND FINANCIAL SECTION
PULL THIS PAGE
BLANK FOR BACK OF TAB
GENERAL FUND
The General Fund has been classified as a major fund and is used to account for resources traditionally
associated with government, which are not legally or by sound financial management to be accounted
for in another fund.
SPECIAL REVENUE FUND
The Special Revenue Fund is used to account for the proceeds of specific revenue sources that are
restricted by law or administrative action for a specified purpose. The following Special Revenue
Fund has been classified as a major fund in the accompanying financial statements:
Park and Facility Development Fund - This fund is used to account for the development and
enhancement of the City's parks.
CAPITAL PROJECTS FUND
The Capital Projects Fund is used to account for the acquisition and construction of major capital
facilities. The following Capital Projects Fund has been classified as a major fund in the
accompanying financial statements:
Capital Improvement Fund - This fund is used to account for the costs of constructing street
improvements, park improvements and other public improvements not normally included within the
other Capital Projects funds. Financing is provided by developer fees and interfund transfers from the
Special Revenue Funds and the General Fund.
-15-
CITY OF DIAMOND BAR
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2007
See independent auditors' report and notes to basic financial statements.
-16-
Special
Capital
Revenue Fund
Projects Fund
Park and Facility
Capital
General
Development
Improvement
Fund
Fund
Fund
ASSETS
ASSETS:
Cash and investments
$ 30,187,327
$ 1,705,422
$ -
Cash and investments with fiscal agent
15,000
-
132,513
Accounts receivable
204,758
-
-
interest receivable
397,093
-
-
Due from other funds (Note 3)
1,342,295
-
-
Due from employees
4,414
-
-
Due from other governments
1,448,488
920,130
511,706
Notes receivable
-
"
TOTAL ASSETS
$ 33,599,375
$ 2,625,552
$ 644,219
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$ 1,354,190
$ -
$ 181,387
Accrued payroll
88,956
-
-
Deposits payable
1,140,635
-
-
Due to other funds (Note 3)
-
-
1,320,594
Deferred revenue
532,204
917,277
511,706
Retentions payable
21,840
-
371,875
Advances from other governments
-
-
"
TOTAL LIABILITIES
3,137,825
917,277
2,385,562
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
1,105,762
-
2,940,385
Improvements
2,207
-
Bond retirement
771,959
-
-
Debt service
13,359
-
-
Unreserved, Reported in:
General Fund
28,568,263
-
-
Special Revenue Funds
-
1,708,275
-
Capital Projects Funds
-
-
(4,681,728)
TOTAL FUND BALANCES (DEFICIT)
30,461,550
1,708,275
(1,741,343)
TOTAL LIABILITIES AND FUND BALANCES
$ 33,599,375
$ 2,625,552
$ 644,219
See independent auditors' report and notes to basic financial statements.
-16-
Other
Total
Governmental
Governmental
Funds
Funds
$ 4,716,107 $ 36,608,856
321,747
469,260
43,479
248,237
-
397,093
-
1,342,295
-
4,414
204,673
3,084,997
186,854
186,854
$ 5,472,860 $ 42,342,006
$ 463,391
$ 1,998,968
4,860
93,816
-
1,140,635
21,701
1,342,295
75,150
2,036,337
-
393,715
186,854
186,854
751,956 7,192,620
49,319 4,095,466
- 2,207
- 771,959
321,747 335,106
- 28,568,263
4,349,838 6,058,113
- (4,681,728)
4,720,904 35,149,386
$ 5,472,860 $ 42,342,006
-17-
THIS PAGE LEFT BLANK INTENTIONALLY
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2007
Fund balances for governmental funds
Amounts reported for governmental activities in the Statement of Net Assets are different because:
Capital assets, net of depreciation, have not been included as financial resources
in governmental fund activity.
Long-term liabilities applicable to the City governmental activities are not due and
payable in the current period and accordingly are not reported as fund liabilities.
Also, bond issuance costs do not provide current financial resources and are not
reported in the governmental funds. All liabilities, both current and long-term, are
reported in the Statement of Net Assets. Balances at June 30, 2007 are:
Bonds payable
Deferred charges for issuance costs
Bond discount
Compensated absences
Accrued interest payable from the current portion of interest due on bonds
payable has not been reported in the governmental funds.
Certain amounts due from other governments that are not available to pay for
current period expenditures and, therefore, are recorded as deferred revenue
in the governmental funds.
Internal service funds are used by management to charge the costs of certain activities,
such as equipment management, to individual funds. The assets and liabilities of
the internal service funds must be added to the Statement of Net Assets.
Net assets of governmental activities
See independent auditors' report and notes to basic financial statements.
-19-
$(13,280,000)
547,517
119,210
(331,065)
$ 35,149,386
388,311,061
(12,944,338)
(42,940)
2,036,337
1,561,892
$ 414,071,398
CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended June 30, 2007
EXPENDITURES:
Current:
General government
Public safety
Highways and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR
4,402,235 - -
4,865,335 - -
2,400,023 - -
3,475,549 - -
1,741,686 - -
- - 5,344,935
16,884,828 - 5,344,935
4,954,510 409,957 (4,765,760)
1,311,707 - 3,679,739
(2,218,283) (527,397) -
(906,576) (527,397) 3,679,739
4,047,934 (117,440) (1,086,021)
26,413,616 1,825,715 (655,322)
FUND BALANCES (DEFICIT) - END OF YEAR $ 30,461,550 $ 1,708,275 $ (1,741,343)
See independent auditors' report and notes to basic financial statements.
-20-
Special
Capital
Revenue Fund
Projects Fund
Park and Facility
Capital
General
Development
Improvement
Fund
Fund
Fund
REVENUES:
Taxes
$ 9,876,760
$ -
$ -
Special assessments
-
-
Intergovernmental revenue
5,204,901
122,672
579,175
Charges for services
-
-
-
Fines and forfeitures
546,902
-
-
Licenses, permits and fees
4,049,701
197,925
-
Investment income
1,393,617
89,360
Other revenues
767,457
-
-
TOTAL REVENUES
21,839,338
409,957
579,175
EXPENDITURES:
Current:
General government
Public safety
Highways and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICIT) - BEGINNING OF YEAR
4,402,235 - -
4,865,335 - -
2,400,023 - -
3,475,549 - -
1,741,686 - -
- - 5,344,935
16,884,828 - 5,344,935
4,954,510 409,957 (4,765,760)
1,311,707 - 3,679,739
(2,218,283) (527,397) -
(906,576) (527,397) 3,679,739
4,047,934 (117,440) (1,086,021)
26,413,616 1,825,715 (655,322)
FUND BALANCES (DEFICIT) - END OF YEAR $ 30,461,550 $ 1,708,275 $ (1,741,343)
See independent auditors' report and notes to basic financial statements.
-20-
Other
Total
Governmental
Governmental
Funds
Funds
$ -
$ 9,876,760
541,382
541,382
5,262,304
11,169,052
1,002,210
1,002,210
-
546,902
-
4,247,626
233,217
1,716,194
-
767,457
7,039,113 29,867,583
14,955
2,714,251
551,071
4,402,235
4,880,290
5,114,274
3,475,549
2,292,757
5,344,935
240,000 240,000
493,840 493,840
4,014,117 26,243,880
3,024,996 3,623,703
1,039,318 6,030,764
(3,608,426) (6,354,106)
(2,569,108) (323,342)
455,888 3,300,361
4,265,016 31,849,025
$ 4,720,904 $ 35,149,386
-21-
CITY OF DIAMOND BAR
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2007
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds $ 3,300,361
Governmental funds report capital outlays as expenditures. However, in the Statement
of Activities, the cost of those assets is allocated over the estimated useful lives as
depreciation expense. This is the amount by which depreciation exceeded capital
expenses in the current period:
Capital expenditures $ 1,058,750
(5,844,089) (4,785,339)
Depreciation expense
The net effect of various miscellaneous transactions involving capital assets
(i.e. sales, trade-ins and donations) is to decrease net assets. (249)
The issuance of long term debt provides current financial resources to governmental
funds, while the repayment of the principal of long-term debt consumes the current
financial of governmental funds. Neither transaction, however, has any effects on net
assets. Also, governmental funds report the effect of issuance costs, premiums, discounts
and similar discounts and similar items when the debt is first issued, whereas these amounts
are deferred and amortized in the Statement of Activities. These amounts are the net effect
of these differences in the treatment of long-term debt and related items:
Principal payment $ 240,000
Amortization of bond discount (4,585)
Amortization of issuance costs (21,058)
Compensated absences (40,296) 174,061
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental
funds:
383
Interest expense
Some revenues reported in the Statement of Activities are not considered to be available
to finance current expenditures and therefore are not reported as revenues in the
governmental funds 698,OS7
Internal service funds are used by management to charge the costs of certain activities,
such as self-insurance, equipment management, and computer management, to individual
funds. The net revenues (expenses) of the internal service funds is reported with
governmental activities. 3,584
Change in net assets of governmental activities $ (609,142)
See independent auditors' report and notes to basic financial statements.
-22-
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2007
ASSETS
CURRENT ASSETS:
Cash and investments
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
Less accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES:
Accounts payable
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
Internal
Service
Funds
$ 2,002,526
193,623
(127,494)
66,129
2,068,655
506,763
66,129
1,495,763
See independent auditors' report and notes to basic financial statements.
-23-
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
For the year ended June 30, 2007
OPERATING EXPENSES:
Insurance premiums
Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES (EXPENSES):
Investment income
TOTAL NONOPERATING REVENUES (EXPENSES)
LOSS BEFORE TRANSFERS
I._: _ 0:' 1
CHANGE IN NET ASSETS
TOTAL NET ASSETS - BEGINNING OF YEAR
TOTAL NET ASSETS - END OF YEAR
See independent auditors' report and notes to basic financial statements.
-24-
Internal
Service
$ 370,415
25,247
395,662
(395,662)
75,904
.I.
(319,758)
323,342
3,584
1,558,308
$ 1,561,892
CITY OF DIAMOND BAR
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance payments
NET CASH USED BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers from other funds
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Purchase of capital assets
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
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 OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation
Changes in operating assets and liabilities:
Increase (decrease) in due to other governments
TOTAL ADJUSTMENTS
NET CASH USED BY OPERATING ACTIVITIES
See independent auditors' report and notes to basic financial statements.
-25-
Internal
Service
Funds
$ (225,008)
(225,008)
323,342
323,342
(5,010)
(5,010)
75,904
75,904
169,228
1,833,298
$ 2,002,526
$ (395,662)
25,247
145,407
170,654_
$ (225,008)
THIS PAGE LEFT BLANK INTENTIONALLY
-26-
PULL THIS PAGE AND INSERT TAB FOR
NOTES TO THE FINANCIAL STATEMENTS
PULL TRIS PAGE
BLANK FOR BACK OF TAB
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES:
a. Description of Reporting Entity:
The City of Diamond Bar (the City) was incorporated April 18, 1989 as a "General Law" City
governed by an elected five -member city council. As required by accounting principles
generally accepted in the United States of America, these financial statements present the City
of Diamond Bar (the primary government) and its component units. The component units
discussed below are included in the City's reporting entity because of the significance of their
operational or financial relationship with the City. These entities are legally separate from each
other. However, the City of Diamond Bar's elected officials have a continuing full or partial
accountability for fiscal matters of the other entities. The financial reporting entity consists of:
(1) the City (2) organizations for which the City is financially accountable; and,
(3) organizations for which the nature and significance of their relationship with the City are
such that exclusion would cause the City's financial statements to be misleading or incomplete.
An organization is fiscally dependent on the primary government if it is unable to adopt its
budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary
government. In a blended presentation, a component unit's balances and transactions are
reported in a manner similar to the balances and transactions of the City. Component units are
presented on a blended basis when the component unit's governing body is substantially the
same as the City's or the component unit provides services almost entirely to the City.
Blended Component Units:
The Diamond Bar Community Redevelopment Agency (the Agency) was established
February 6, 1996, pursuant to the State of California Health and Safety Code, Section 33000,
entitled "Community Redevelopment Law". Although it is a legally separate entity from the
City, the Agency is reported as if it were part of the City because of its purpose to prepare and
execute plans for improvement, rehabilitation and redevelopment of blighted areas within the
territorial limits of the City. According to the California Supreme Court's decision on
August 9, 2000, the Agency's Redevelopment Plan was deemed invalid. No activities occurred
during the year ended June 30, 2007. Accordingly, no financial statements of the Agency were
issued.
The Diamond Bar Public Financing Authority (the Authority) was formed on
November 19, 2002. The purpose of the Authority is to issue debt to finance public
improvements and other capital purchases for the City and Agency. The activity of the
Authority is reported in debt service and capital projects funds.
See independent auditors' report.
-27-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Government -Wide and Fund Financial Statements:
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the City. For
the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant
extent on fees and charges for support. The City has no business -type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds are reported as separate columns in the fund financial
statements.
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation:
The basic financial statements of the City are composed of the following:
® Government -wide financial statements
® Fund financial statements
® Notes to basic financial statements
See independent auditors' report.
-28-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued):
The government -wide financial statements and proprietary fund financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Under the economic resources measurement focus, all assets and liabilities (current and
long-term) are reported. Under the accrual basis of accounting, revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the fiscal year, which the taxes
are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all the eligibility requirements imposed by the provider have been met.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the City's internal service funds are charges to customers for
services. Operating expenses for the proprietary funds include the cost of services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the current financial
resources measurement focus, generally only current assets and liabilities are reported in the
governmental funds. Governmental fund operating statements present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current
assets. Under the modified accrual basis of accounting, revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the government considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when
a liability is incurred, except for principal and interest on general long-term liabilities, claims
and judgments, and compensated absences which are recognized as expenditures only when
payment is due.
See independent auditors' report.
-29-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued):
Property taxes, taxpayer -assessed taxes, such as sales taxes, gas taxes, and transient occupancy
taxes, and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to
be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the government.
The accounts of the City are organized and operated on the basis of funds, each of which is
considered a separate accounting entity with a self -balancing set of accounts, established for the
purpose of carrying on specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted resources.
d. Fund Classifications:
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City and is used to account for all
revenues and expenditures of the City not legally restricted as to use. A broad range of
municipal activities are provided through this fund including City Manager, City Attorney,
Finance, City Clerk, Public Works, Building and Safety, and Parks and Recreation.
The Park and Facility Development Special Revenue Fund - This fund is used to account for
the development and enhancement of the City's parks.
The Capital Improvement Capital Projects Fund is used to account for the costs of constructing
street improvements, park improvements and other public improvements not normally included
within the other Capital Projects funds. Financing is provided by developer fees and interfimd
transfers from the Special Revenue Funds and the General Fund.
See independent auditors' report. -30-
[a I • W 03 FAM L630 11KA,
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Fund Classifications (Continued):
The City's fund structure also includes the following fund types:
GOVERNMENTAL FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
restricted by law or administrative action for a specified purpose.
Debt Service Fund is used primarily to account for the accumulation of resources for the
payment of principal and interest on long-term liabilities of the City.
Capital Projects Fund is used to account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Special Revenue Funds).
Internal Service Funds have been established to finance and account for goods and services
provided by one City department to other City departments or agencies. These activities
include self-insurance, equipment and computer maintenance.
e. Investments:
For financial reporting purposes, investments are stated at fair value.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings, changes in fair
value, and any gains or losses realized upon the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each
fund's share in this pool is displayed in the accompanying financial statements as cash and
investments. Investment income earned by the pooled investments is allocated to the various
funds based on each fund's average cash and investment balances.
See independent auditors' report.
-31-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
f. Cash and Cash Equivalents:
For purposes of the statement of cash flows, cash and cash equivalents are defined as
short-term, highly liquid investments that are both readily convertible to known amounts of
cash or so near their maturity (an original maturity date of three months or less from the date of
purchase) that they present insignificant risk of changes in value because of changes in interest
rates. Cash and cash equivalents also represent the proprietary funds' share in the cash and
investment pool of the City. All cash and investments of the proprietary (internal service) funds
are pooled with the City's pooled cash and investments and are therefore considered cash
equivalents for purposes of the statement of cash flows.
g. Capital Assets:
Capital assets (including infrastructure) are recorded at cost where historical records are
available and at an estimated original cost where no historical records exist. Contributed
capital assets are valued at their estimated fair market value at the date of contribution. Capital
asset purchases (other than infrastructure) in excess of $1,500 are capitalized if they have an
expected useful life of three years or more.
Capital assets include additions to public domain (infrastructure), certain improvements
including roads, streets, sidewalks, medians and storm drains within the City. In the fiscal year
ended June 30, 2007, the City, with the assistance of an outside consultant, valued and recorded
its public domain assets acquired prior to July 1, 2002. The City now has all of its
infrastructure asset data valued and recorded in its entirety as of June 30, 2007.
Capital assets used in operations are depreciated over their estimated useful lives using the
straight-line method in the Government -wide and Proprietary Fund Financial Statements.
Depreciation is charged as an expense against operations and accumulated depreciation is
reported on the respective balance sheet. The lives used for depreciation purposes of each
capital asset class are:
Buildings and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
See independent auditors' report.
-32-
10 - 20 years
3 - 5 years
5 years
10 - 50 years
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
h. 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.
i. Compensated Absences:
Vacation and sick leave time begin to accumulate as of the first day of employment to a
maximum of 160 hours. Employees who accumulate sick leave in excess of 160 hours are paid
for the excess annually at one half the employee's current wage rate.
A liability is recorded for unused vacation and similar compensatory leave balances since the
employees' entitlement to these balances are attributable to services already rendered and it is
probable that virtually all of these balances will be liquidated by either paid time off or
payments upon termination or retirement.
A liability is recorded for unused sick leave balances only to the extent that it's probable that
the unused balances will result in termination payments. This is estimated by including in the
liability the unused balances of employees currently entitled to receive termination payments,
as well as those who are expected to become eligible to receive termination benefits as a result
of continuing their employment with the City.
If an employee terminates with a minimum of one year of service, the employee is entitled to
receive 10% of the value of his unused sick leave. The percentage increases to 50% for two to
three years of service and 100% of the value of his unused sick leave upon the completion of
more than three years of continuous employment.
j. Deferred Charges:
Deferred charges represent capitalized costs incurred in connection with the issuance of
long-term debt. These costs are amortized over the life of the debt on a straight-line basis.
See independent auditors' report.
-33-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. Property Taxes:
Under California law, property taxes are assessed and collected by the counties up to 1% of
assessed value, plus other increases approved by the voters. The property taxes go into a pool,
and are then allocated to the cities based on complex formulas. Accordingly, the City accrues
only those taxes which are received from the County within 60 days after year end.
Property taxes are assessed and collected each fiscal year according to the following property
tax calendar:
Lien date
Levy date
Due dates
Collection dates
Delinquent dates
1. Use of Estimates:
January 1
July 1
November 1 - l St installment
February 1 - 2nd installment
December 10 - 1St installment
April 10 - 2nd installment
December 11 - 1St installment
April 11 - 2nd installment
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenditures during the reporting period. Actual results could differ from
those estimates.
See independent auditors' report.
-34-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
2. CASH AND INVESTMENTS:
Cash and Investments:
Cash and investments at June 30, 2007 consisted of the following:
Statement of Net Assets:
Cash and investments $ 38,611,382
Cash and investments with fiscal agents 469,260
$ 39,080,642
Cash and investments held by the City at June 30, 2007 consisted of the following:
Imprest cash on hand
$ 1,500
Demand deposits (overdraft)
(96,089)
Escrow deposits
147,513
Investments:
U.S. Government Sponsored Enterprise Securities
9,000,000
Repurchase agreements
1,324,036
Local agency investment fund
28,381,935
Held by Bond Trustee:
Money Market Mutual Funds
321,747
$ 39,080,642
See independent auditors' report.
-35-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government Code and the City's Investment Policy:
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the City's investment policy,
where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the California
Government Code or the City's investment policy.
(1) Notes must be rated "A" or better.
N/A - Not Applicable
See independent auditors' report.
-36-
Maximum
Maximum
Maximum
Percentage
Investment
Authorized Investment Type
Maturity
of Portfolio*
in One Issuer
United States (U.S.) Treasury Obligations
5 years
None
None
U.S. Government Sponsored
Enterprise Securities
5 years
20%
None
Banker's Acceptances
180 days
40%
30%
Time Certificate of Deposits
5 years
None
None
Commercial Paper
270 days
25%
10%
Negotiable Certificates of Deposit
5 years
30%
None
Money Market Mutual Funds
N/A
15%
None
Repurchase Agreements
1 year
None
None
Medium -Term Corporate Notes (1)
5 years
30%
None
Local Agency Investment Fund (LAIF)
N/A
None
$ 40,000,000
* - Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
(1) Notes must be rated "A" or better.
N/A - Not Applicable
See independent auditors' report.
-36-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by Debt Agreements:
Investments of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the City's
investment policy. The table below identifies the investment types that are authorized for
investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
Disclosures Relating to Interest Rate Risk:
Maximum
Percentage/
Amount
Allowed
12
10%
None
None
None
None
None
Equal to six
months of
principal and
interest on
the bonds
Maximum
Investment
in One Issuer
None
None
None
None
None
None
None
None
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
See independent auditors' report.
-37-
Maximum
Authorized Investment Type
Maturity
U.S. Treasury Obligations
None
U.S. Government Sponsored
Enterprise Securities
None
Banker's Acceptances
1 year
Time Certificate of Deposits
None
Local Agency Investment Fund
None
Money Market Funds
None
Repurchase Obligations
Tax Exempt
30 days
Taxable Government Money
Market Portfolios
None
Disclosures Relating to Interest Rate Risk:
Maximum
Percentage/
Amount
Allowed
12
10%
None
None
None
None
None
Equal to six
months of
principal and
interest on
the bonds
Maximum
Investment
in One Issuer
None
None
None
None
None
None
None
None
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
See independent auditors' report.
-37-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk (Continued):
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity:
Investment Type
U.S. Government Sponsored Enterprise
Securities
Repurchase Agreements
Local Agency Investment Fund
Held by Bond Trustee:
Money Marker Mutual Funds
Disclosures Relating. to Credit Risk:
Remaining Maturity in Months)
12 Months 13-24 25-60
or Less Months Months Total
$ 2,000,000
1,324,036
28,381,935
$ 5,000,000 $ 2,000,000 $
9,000,000
1,324,036
28,381,935
321,747 - - 321,747
$ 32,027,7-1 $ 5,000,0 $ 2X00,000 $ 39 027 718
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where
applicable) the California Government Code, the City's investment policy, or debt agreements, and
the actual rating, as reported by Standard and Poor's, as of year end for each investment type:
N/A - Not Applicable
See independent auditors' report.
-38-
AAA Unrated
$ 9,000,000 $
321,747
$
9,321,747
1,324,036
28,381,935
$ 29,705,971
Total
Minimum
as of
Legal
Investment Type
June 30, 2007
Rating__
U.S. Government
Sponsored Enterprise
Securities
$ 9,000,000
AAA
Repurchase Agreements
1,324,036
N/A
Local Agency
Investment Fund
28,381,935
N/A
Held by Bond Trustee:
Money Market
Mutual Funds
321,747
A
Total
$ 39,027118
N/A - Not Applicable
See independent auditors' report.
-38-
AAA Unrated
$ 9,000,000 $
321,747
$
9,321,747
1,324,036
28,381,935
$ 29,705,971
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Custodial Credit Risk:
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The California Government Code and the
City's investment policy do not contain legal or policy requirements that would limit the exposure
to custodial credit risk for deposits or investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits made by state
or local governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The market
value of the pledged securities in the collateral pool must equal at least 110% of the total amount
deposited by the public agencies. California law also allows financial institutions to secure City
deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public
deposits. The City does not accept 150% of the secured public totals. At June 30, 2007, the City
deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to
$100,000 and the remaining balances were collateralized under California Law. The cash and
investments held by Bond Trustee are uninsured and uncollateralized.
Investment in State Investment Pool:
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of the City's investment in this pool is reported in the accompanying
financial statements at amounts based upon the City's pro -rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis.
See independent auditors' report.
-39-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
3. 1NTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
The composition of interfund balances as of June 30, 2007, is as follows:
Due To/From Other Funds:
Receivable Fund Payable Fund Amount
General Fund Capital Improvement Capital
Projects Fund $ 1,320,594
Other Governmental Funds 21,701
$ 1,342,295
The amounts loaned from the General Fund to the Capital Improvement Capital Projects Fund and
Other Governmental Funds are to provide a short-term loan to fund temporary cash shortfalls.
Interfund Transfers:
Transfers In
Transfers Out
Amount
General Fund
Other Governmental Funds
$ 1,311,707
Capital Improvement
General Fund
855,623
Capital Projects Fund
Park and Facility Development
Special Revenue Fund
527,397
Other Governmental Funds
2,296,719
Other Governmental Funds
General Fund
1,039,318
Internal Service Funds
General Fund
323,342
$ 6,354,106
Transfers to the General Fund from the Other Governmental Funds were made to reimburse the
General Fund for various capital projects.
Transfers to the Capital Improvement Capital Projects Fund from the General Fund, the Park and
Facility Development Special Revenue Fund and Other Governmental Funds were made to provide
the funding necessary to accomplish those projects approved by the City Council.
Transfers from the General Fund to the Other Governmental Funds were made to provide for debt
service payments. Transfers from the General Fund to the Internal Service Funds were made to
provide for purchases of a vehicle and equipment and uninsured insurance losses.
See independent auditors' report.
-40-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
4. CAPITALASSETS:
A summary of changes in the Governmental Activities capital assets at June 30, 2007 is as follows:
Capital assets, not being depreciated:
Land
Right of way
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Building and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total capital assets
being depreciated
Balance
July 1, 2006 Balance at
As Restated Additions Deletions June 30, 2007
$ 6,206,190 $ - $ - $ 6,206,190
256,536,095 - - 256,536,095
2,947,753 559,512 (2185,046) 1,322,219
265,690,038 559,512 (2,185,046) 264,064,504
21,788,509 2,142,503 - 23,931,012
68,505 - - 68,505
1,386,550 254,167 (92,150) 1,548,567
179,097,299 292,624 - 179,389,923
202,340,863 2,689,294 (92,150) 204,938,007
Less accumulated depreciation for:
Building and improvements
(6,126,242)
(1,301,853)
- (7,428,095)
Furniture and fixtures
(56,630)
(3,060)
- (59,690)
Vehicles and equipment
(846,926)
(160,639)
91,901 (915,664)
Infrastructure
(67,818,087)
(4,403,785)
- (72,221,872)
Total accumulated depreciation
(74,847,885)
(5,869,337)
91,901 (80,625,321)
Total capital assets
being depreciated, net
Total Governmental Activities
capital assets, net
127,492,978 (3,180,043) (249) 124,312,686
$ 393,1.83.016 $ (2,620,531) $(2,185 295) $ 388,377,19-0
Depreciation expense was charged to functions in the Statement of Activities as follows:
General government $ 102,009
Public safety 17,114
Highways and streets 4,408,431
Parks, recreation and culture 1,316,536
Internal Service Funds depreciation
charges to program 25,247
$ 5,869,337
See independent auditors' report.
-41-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
5. LONG-TERM LIABILITIES:
Long-term liability activity for the year ended June 30, 2007, was as follows:
Bonds payable:
Revenue bonds
Unamortized discount
Compensated absences
Total
Bonds Payable:
Beginning
Balance Additions Retirements
$13,520,000
(123,795)
290,769
$13,696,974
282,385
$ 282.385
$ (240,000)
4,585
(242,089)
(477,504)
Ending Due Within
Balance One Year
$13,280,000 $ 255,000
(119,210) -
331,065 110,355
13,491.855 $ 365 355
In December 2002, the Diamond Bar Public Financing Authority issued $13,755,000 of
2002 Series A Variable Rate Lease Revenue Bonds to finance the construction of a
community/senior center project and other public improvements within the City. The bonds are
special limited obligations of the Authority payable solely from revenues, consisting primarily of
base rental payments paid by the City. The variable interest rate on the bonds is reset on a
bi-weekly basis. As of June 30, 2007, $13,280,000 of the bonds are outstanding.
In conjunction with the Bonds, the Authority executed a rate cap agreement on December 2, 2002
(the Agreement) with JPMorgan Chase (Counterparty) to minimize debt service cost on the 2002
Lease Revenue Bonds (the Bonds) by setting a cap on the interest rate on the Bonds. Under the
Agreement, the Counterparty will pay the Authority an amount equal to the product of. (i) the
amount by which the floating rate exceeds 4.5%, (ii) the notional principal amount and (iii) the
actual number of days in the calculation period divided by 365 days. The Agreement is for a
notional amount equal to the outstanding principal amount of the Bonds and will decline as the
principal amount declines. The Agreement terminates on January 1, 2013.
Fair Value:
At June 30, 2007 the Agreement had a positive fair value of $64,644. This is the amount that the
Authority would receive in the event that the Agreement is terminated. The fair value was
estimated by the City's financial advisor.
Credit Risk:
The Counterparty, JPMorgan Chase, has the following credit ratings of: (i) Standard & Poor's, AA -
and (ii) Moody's, Aa2.
Basis Risk:
The Agreement does not expose the Authority to basis risk, which refers to a mismatch between the
interest rate cap of 4.5% and the variable rate payments to be made on the debt.
See independent auditors' report.
-42-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
5. LONG-TERM LIABILITIES (CONTINUED):
Bonds Payable (Continued):
Termination Risk:
If the rate cap is terminated, the rate on the Bonds that the Authority would prospectively have to
pay will not be subject to the cap rate of 4.5%. The termination of the Agreement could therefore
increase the Authority's total debt service in the event that the variable rate is higher than the cap
rate of 4.5%. At June 30, 2007, the Agreement had a positive fair value of $64,644.
Payments and Associated Debt:
Using a variable rate of 4.83% as of June 30, 2007, debt service requirements of the Bonds and the
Counterparty's payments, assuming current interest rates remain the same for remainder of the term
of the Agreement, are as follows. As rates vary, the variable rate interest payments and net rate cap
payments will vary.
Compensated Absences:
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $331,065 at June 30, 2007, is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
See independent auditors' report.
-43-
Variable Rate Debt
Counter-
Net
Year Ending
party
Debt
June 30,
Principal
Interest
Total
Payments
Service
2008
$ 255,000
$ 641,424
$ 896,424
$ (43,824) $
852,600
2009
265,000
629,108
894,108
(42,983)
851,125
2010
280,000
616,308
896,308
(42,108)
854,200
2011
290,000
602,784
892,784
(41,184)
851,600
2012
305,000
588,777
893,777
(40,227)
853,550
2013-2017
1,755,000
2,708,424
4,463,424
(185,049)
4,278,375
2018-2022
2,205,000
2,243,535
4,448,535
(153,285)
4,295,250
2023-2027
2,780,000
1,657,899
4,437,899
(113,274)
4,324,625
2028-2032
3,500,000
919,874
4,419,874
(62,849)
4,357,025
2033-2034
1,645,000
120,026
1,765,026
(8,201)
1,756,825
$ 13,280,000
$ 10,728J59
$ 24 008,159
$ (732,984) $ 23,275,175
Compensated Absences:
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $331,065 at June 30, 2007, is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
See independent auditors' report.
-43-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION:
The City is a member of the California Joint Powers Insurance Authority (the Authority). The
Authority is composed of 114 California public entities and is organized under a joint powers
agreement pursuant to California Government Code Section 6500 et seq. The purpose of the
Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase
excess insurance or reinsurance, and to arrange for group -purchased insurance for property and
other coverages. The Authority's pool began covering claims of its members in 1978. Each
member government has an elected official as its representative on the Board of Directors. The
Board operates through a 9 -member Executive Committee.
a. Self -Insurance Programs of the Authority:
General Liability
Each member government pays a primary deposit to cover estimated losses for a fiscal year
(claims year). Six months after the close of a fiscal year, outstanding claims are valued. A
retrospective deposit computation is then made for each open claims year. Claims are pooled
separately between police and nonpolice. Costs are spread to members as follows: the first
$30,000 of each occurrence is charged directly to the member's primary deposit; costs from
$30,000 to $750,000 and the loss development reserves associated with losses up to $750,000
are pooled based on the member's share of losses under $30,000. Losses from $750,000 to
$10,000,000, $18,000,000 to $23,000,000, and $45,000,000 to $50,000,000 and the associated
loss development reserves are pooled based on payroll. Costs of covered claims from
$10,000,000 to $18,000,000 and $23,000,000 to $45,000,000 are currently paid by excess
insurance. Costs of covered claims for subsidence losses from $15,000,000 to $25,000,000 are
paid by excess insurance. The protection for each member is $50,000,000 per occurrence and
$50,000,000 annual aggregate. Administrative expenses are paid from the Authority's
investment earnings.
Workers' Compensation
The City also participates in the workers' compensation pool administered by the Authority.
Each member pays a primary deposit to cover estimated losses for a fiscal year (claims year).
Six months after the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Claims are pooled separately
between public safety and nonpublic safety.
See independent auditors' report. -44-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED):
a. Self -Insurance Programs of the Authority (Continued):
Workers' Compensation (Continued)
Each member has a retention level of $50,000 for each loss and this is charged directly to the
member's primary deposit. Losses from $50,000 to $100,000 and the loss development
reserve associated with losses up to $100,000 are pooled based on the member's share of losses
under $50,000. Losses from $100,000 to $2,000,000 and loss development reserves associated
with those losses are pooled based on payroll. Losses from $2,000,000 to $5,000,000 are
pooled with California State Association of Counties - Excess Insurance Authority members.
Costs from $2,000,000 to $200,000,000 are transferred to reinsurance carriers. Costs in excess
of $200,000,000 are pooled among the members based on payroll. Protection is provided per
statutory liability under California Workers' Compensation law. Administrative expenses are
paid from the Authority's investment earnings.
b. Purchased Insurance:
Environmental Liability
The City participates in the pollution legal liability and remediation legal liability insurance
which is available through the Authority. This policy covers sudden and gradual pollution of
scheduled property, streets, and storm drains owned by the City. Coverage is on a
claims -made basis. There is a $50,000 deductible. The Authority has a limit of $50,000,000
for the 3 -year period from July 1, 2005 through June 30, 2008. Each member of the Authority
has a $10,000,000 limit during the 3 -year term of the policy.
Property Insurance
The City participates in the all-risk property protection program of the Authority. This
insurance protection is underwritten by several insurance companies. The City's property is
currently insured according to a schedule of covered property submitted by the City to the
Authority. Total all-risk property insurance coverage is $16,435,575. There is a $5,000
deductible per occurrence except for nonemergency vehicle insurance with has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to retroactive
adjustments.
See independent auditors' report.
-45-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
6. LIABILITY, PROPERTY AND WORKERS' COMPENSATION PROTECTION
(CONTINUED):
b. Purchased Insurance (Continued):
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with $2,500
deductible. The fidelity coverage is provided through the Authority. Premiums are paid
annually and are not subject to retroactive adjustments.
c. Adequacy of Protection:
During the past three fiscal (claims) years none of the above programs of protection have had
settlements or judgments that exceed pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
The aforementioned information is not included in the accompanying financial statements.
Complete financial statements for the Authority may be obtained at their administrative office
located at 8081 Moody Street, La Palma, California 90623.
7. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES:
Deficit Fund Balances
The following funds reported deficit fund balances at June 30, 2007:
Major Fund:
Capital Improvement Capital Projects Fund $ (1,741,343)
Other Governmental Funds:
Community Development Block Grant Special Revenue Fund (61,210)
The Capital Improvement Capital Projects Fund deficit will be funded with various government
grants in future years.
The Community Development Block Grant Special Revenue Fund deficit will be funded by future
year revenue allocations from Los Angeles County.
See independent auditors' report. -46-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
7. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES (CONTINUED):
Expenditures Exceeded Appropriations
Expenditures for the year ended June 30, 2007 exceeded appropriations of the following
funds/departments as follows:
Budget Actual Variance
Major Fund:
General Fund:
General Government - City Attorney $ 215,000 $ 246,430 $ (31,430)
General Government - General Government 938,062 947,475 (9,413)
Other Governmental Funds:
Proposition A Transit Special Revenue Fund -
Highways and streets 1,868,405 2,036,136 (167,731)
8. PENSION PLAN:
Plan Description:
The City of Diamond Bar participates in the Miscellaneous 2% at 55 Risk Pool of the California
Public Employee's Retirement System (PERS), a cost-sharing, multiple -employer defined benefit
pension plan administered by PERS. PERS provides retirement and disability benefits, annual
cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefit
provisions and all other requirements are established by State statue and District ordinance. Copies
of the PERS' annual financial report may be obtained from the PERS Executive Office -
400 P Street, Sacramento, California 95814.
Funding Policy:
The contribution requirements of the plan members are established by State statute and the
employer contribution rate is established and may be amended by PERS. Active City employees
are required to contribute 7% of their annual covered salary to PERS. The city makes the
contributions required of City employees on their behalf and for their account. The City is required
to contribute the actuarially determined remaining amounts necessary to fund the benefits for its
members. The current rate is 11.20% of covered payroll. The City's contributions to CalPERS for
the years ending June 30, 2007, 2006 and 2005 were $344,320, $304,107 and $195,270,
respectively and were equal to the required contribution for each year.
See independent auditors' report. -47-
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
9. CONTINGENCIES:
The City is presently involved in other matters of litigation that have arisen in the
normal course of
the City's business. City management believes,
based upon consultation with
the City Attorney,
that these cases, in the aggregate, are not expected to have a material adverse financial impact on
the City.
10. CONSTRUCTION COMMITMENTS:
The following material construction commitments existed at June 30, 2007:
Expenditures as of
Remaining
Project Name
June 30, 2007
Commitments
Park Improvements
$ 34,493
$ 175,569
Street Improvements
1,592,327
1,499,807
Miscellaneous Capital Improvements
61,044
628,630
Traffic Signals
167,522
551,636
Left Turn
277,139
37,016
Landscape and Irrigation Improvements
21,486
47,727
2,154,01.1
2,940-385
See independent auditors' report.
-48-
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2007
11. OPERATING LEASES:
The City leases building and office facilities under noncancelable operating leases. The total costs
for such leases were $261,727 for the year ended June 30, 2007. The future minimum lease
payments for the lease of building and office facilities are as follows:
Year Ending
June 30,
2008
$ 261,727
2009
264,151
2010
268,997
2011
179,332
Total $ 974,207
12. RESTATEMENT OF NET ASSETS:
The balances of net assets at July 1, 2006 of the governmental activities were increased by
$365,761,450 to $414,680,540 to record the net book value of infrastructure assets acquired or
constructed prior to July 1, 2002. This adjustment was made in accordance with the
implementation guidelines of Governmental Accounting Standards Board Statement No. 34 on
Basic Financial Statements — and Management's Discussion and Analysis — for State and Local
Governments.
See independent auditors' report.
-49-
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GENERAL FUND
The General Fund is used to account for resources traditionally associated with government, which are
not legally or by sound financial management to be accounted for in another fund.
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
restricted by law or administrative action for a specified purpose.
Park and Facility Development Fund - This fund is used to account for the development and
enhancement of the City's parks.
-51-
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the year ended June 30, 2007
REVENUES:
Taxes
Intergovernmental revenue
Fines and forfeitures
Licenses, permits and fees
Investment income
Other revenues
TOTAL REVENUES
EXPENDITURES:
Current:
General government:
City Council
City Manager/Clerk
City Attorney
Finance
Human resources
Information systems
General government
Public information
Subtotal general government
Public safety:
Law enforcement
Fire protection
Animal control
Emergency preparedness
Subtotal public safety
Highways and streets
Parks, recreation and culture
Community development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Transfers in
Transfers out
TOTAL OTHER
FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR 26,136,376 26,136,376 26,413,616 277,240
FUND BALANCE - END OF YEAR $ 23,314,376 $ 23,304,941 $ 30,461,550 $ 7,156,609
See independent auditors' report and note to required supplementary information.
-52-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 9,400,000
$ 9,395,000
$ 9,876,760
$ 481,760
3,941,525
4,403,945
5,204,901
800,956
617,500
595,500
546,902
(48,598)
2,803,785
3,406,785
4,049,701
642,916
625,000
625,000
1,393,617
768,617
657,900
657,900
767,457
109,557
18,045,710
19,084,130
21,839,338
2,755,208
191,600
191,600
167,973
23,627
936,140
948,640
915,838
32,802
165,000
215,000
246,430
(31,430)
420,300
420,300
379,160
41,140
241,415
241,415
125,937
115,478
1,268,590
1,550,090
1,159,135
390,955
885,562
938,062
947,475
(9,413)
577,790
577,790
460,287
117,503
4,686,397
5,082,897
4,402,235
680,662
4,996,250
5,066,250
4,719,030
347,220
40,900
40,900
24,975
15,925
112,500
112,500
107,519
4,981
43,290
43,290
13,811
29,479
5,192,940
5,262,940
4,865,335
397,605
2,441,610
2,574,175
2,400,023
174,152
3,589,055
3,836,465
3,475,549
360,916
2,741,580
2,586,530
1,741,686
844,844
18,651,582
19,343,007
16,884,828
2,458,179
(605,872)
(258,877)
4,954,510
5,213,387
1,483,050
1,548,050
1,311,707
(236,343)
(3,699,178)
(4,120,608)
(2,218,283)
1,902,325
(2,216,128)
(2,572,558)
(906,576)
1,665,982
(2,822,000)
(2,831,435)
4,047,934
6,879,369
FUND BALANCE - BEGINNING OF YEAR 26,136,376 26,136,376 26,413,616 277,240
FUND BALANCE - END OF YEAR $ 23,314,376 $ 23,304,941 $ 30,461,550 $ 7,156,609
See independent auditors' report and note to required supplementary information.
-52-
BUDGETARY COMPARISON SCHEDULE
PARK AND FACILITY DEVELOPMENT SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Licenses, permits and fees
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 932,755
$ 932,755
$ 122,672
$ (810,083)
65,250
65,250
197,925
132,675
53,000
53,000
89,360
36,360
1,051,005
1,051,005
409,957
(641,048)
(1,949,205)
(2,412,085)
(527,397)
1,884,688
(1,949,205)
(2,412,085)
(527,397)
1,884,688
(898,200)
(1,361,080)
(117,440)
1,243,640
938,230
938,230
1,825,715
887,485
$ 40,030 $ (422,850) $ 1,708,275 $ 2,131,125
See independent auditors' report and note to required supplementary information.
-53-
wffim• • : as
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2007
1. BUDGETS AND BUDGETARY ACCOUNTING:
The City adheres to the following general procedures in establishing its annual budget, which is
reflected in the accompanying basic financial statements:
a. The annual budget adopted by the City Council provides for the general operation of the City.
It includes proposed expenditures and the means of financing them. Budgeted appropriations
lapse at the end of the year.
b. The City Council approves total budgeted appropriations and amendments to appropriations
throughout the year. The City Council must approve budget appropriation transfers between
departments within a fund. The departments of the General Fund are, considered to be
departments for purposes of this requirement. Actual expenditures may not legally exceed
budgeted appropriations at the fund level.
c. Annual budgets are adopted for the General and Special Revenue Funds on a basis substantially
consistent with accounting principles generally accepted in the United States of America.
Accordingly, actual revenues and expenditures can be compared with related budgeted amounts
without any significant reconciling items. Annual budges are not adopted for the Debt Service
Funds.
d. The budgetary information shown for revenues and expenditures represents the original
adopted budget adjusted for any changes made by the City Council. For the year ended
June 30, 2007, supplemental appropriations in the amount of $2,322,107 were made.
e. Formal budgetary integration is employed as a management control device. Commitments for
materials and services, such as purchase orders and contracts, are recorded during the year as
encumbrances to assist in controlling expenditures. Appropriations which are encumbered at
year end lapse, and then are added to the following year's budgeted appropriations. However,
encumbrances at year-end are reported as reservations of fund balance.
See independent auditors' report. -54-
mrtpm��.
SUPPLEMENTARY SCHEDULES
PULL THIS PAGE
BLANK FOR BACK OF TAB
MVMM• • • : 111
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
ASSETS
Cash and investments
Cash and investments with fiscal agents
Accounts receivable
Due from other governments
Notes receivable
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued payroll
Due to other funds
Deferred revenue
Advances from other governments
TOTAL LIABILITIES
FUND BALANCES:
Reserved for:
Encumbrances
Debt service
Unreserved reported in:
Special revenue funds
TOTAL FUND BALANCES
TOTAL LIABILITIES
AND FUND BALANCES
See independent auditors' report.
June 30, 2007
I&SIN
Debt
$ 463,391 $
Service Fund
Total
Special
Public
Other
Revenue
Financing
Governmental
Funds
Authority
Funds
$ 4,716,107
$ -
$ 4,716,107
-
321,747
321,747
43,479
-
43,479
204,673
-
204,673
186,854
-
186,854
$ 5,151,113
$ 321,747
$ 5,472,860
$ 463,391 $
- $ 463,391
4,860
- 4,860
21,701
- 21,701
75,150
- 75,150
186,854
- 186,854
751,956
- 751,956
49,319 - 49,319
- 321,747 321,747
4,349,838 - 4,349,838
4,399,157 321,747 4,720,904
$ 5,151,113 $ 321,747 $ 5,472,860
THIS PAGE LEFT BLAND INTENTIONALLY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANCES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2007
REVENUES:
Special assessments
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
Highways and streets
Community development
Debt service:
Principal
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
See independent auditors' report.
-57-
Debt
14,955 14,955
2,714,251 2,714,251
551,071 551,071
240,000 240,000
493,840 493,840.
3,280,277 733,840 4,014,117
3,752,347 (727,351) 3,024,996 _
277,240 762,078 1,039,318
(3,608,426) - (3,608,426)
(3,331,186) 762,078 (2,569,108)
421,161 34,727 455,888
3,977,996 287,020 4,265,016
$ 4,399,157 $ 321,747 $ 4,720,904
Service Fund
Total
Special
Public
Other
Revenue
Financing
Governmental
Funds
Authority
Funds —
$ 541,382
$
$ 541,382
5,262,304
5,262,304
1,002,210
1,002,210
226,728
6,489
233,217
7,032,624
6,489
7,039,113
14,955 14,955
2,714,251 2,714,251
551,071 551,071
240,000 240,000
493,840 493,840.
3,280,277 733,840 4,014,117
3,752,347 (727,351) 3,024,996 _
277,240 762,078 1,039,318
(3,608,426) - (3,608,426)
(3,331,186) 762,078 (2,569,108)
421,161 34,727 455,888
3,977,996 287,020 4,265,016
$ 4,399,157 $ 321,747 $ 4,720,904
OTHER SPECIAL REVENUE FUNDS
The following Special Revenue Funds have been classified as other governmental funds in the
accompanying financial statements:
State Gas Tax F - This fund is used to account for state gasoline taxes received under Sections
2105, 2106, 2107 and 2107.5 of the Streets and Highways Code. State law requires that these revenues
be utilized solely for street related purposes.
Proposition C Transit Fund - This fund is used to account for the receipt and expenditure of
Proposition C funds from the Los Angeles County Metropolitan Transportation Authority for the City's
transit and transit -related improvement projects.
The Intermodal Surface Transportation Enhancement Act (ISTEA) Fund - This fund is used to account
for transport related receipts and expenditures.
Integrated Waste Management Fund - This fund is used to account for revenues and expenditures
related to the City's waste reduction efforts as related to AB939.
Traffic Improvement Fund - This fund is used to account for funds received and designated by the City
Council specifically for traffic improvements.
Traffic Congestion Relief Fund - This fund is used to account for the Governor's transportation
congestion policy program revenue received for the repair and construction of streets.
Air Quality improvement Fund - This fund is used to account for motor vehicle registration fees
received from the South Coast Air Quality Management District to reduce air pollution from motor
vehicles pursuant to the California Clean Air Act of 1988.
California Law Enforcement Equipment Program (CLEEP) Fund - This fund is used to account for
revenues received from the California CLEEP fund and expenditures made for the purchase of
high-technology equipment.
Proposition A Transit Fund - This fund is used to account for the receipt and expenditure of the City's
share of the 1/2cent sales tax levied in Los Angeles County for local transit purposes.
9".
Community Development Block Grant (CDBG) Fund - This fund is used 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 Safety (COPS) Fund - This fund is used to account for COPS grants
received from both the state and federal government. The purpose of these funds is to enhance the
City's public safety budget and to fund special public safety related projects.
Asset Seizure Fund - This fund is used to account for Narcotics Asset Forfeiture funds received from
the federal government. It is required that these funds be used to enhance drug and law enforcement
activities.
Landscape Maintenance District Fund - This fund is used to account of revenues and expenditures
related to the special property tax assessments which were set up in accordance with the Landscape
and Lighting Act of 1972. The purpose of these districts is to improve the landscaping of City owned
medians and hillsides.
-59-
ASSETS
Cash and investments
Accounts receivable
Due from other governments
Notes receivable
TOTAL ASSETS
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2007
Proposition Integrated Traffic
State C Waste Traffic Congestion
Gas Tax Transit ISTEA Management Improvement Relief
$ 139,457 $ 1,531,654 $ - $ 348,274 $ 383,330 $ 442,069
- - - 43,479 -
101,802 - 13,939 - -
$ 241,259 $ 1,531,654 $13,939 $ 391,753 $ 383,330 $ 442,069
LIABILITIES:
Accounts payable $ - $ - $ - $ 12,823 $ - $
Accrued payroll - - - 2'280
Due to other funds - '
Deferred revenue - - 13,939 - -
Advances from other governments - - -
TOTAL LIABILITIES - - 13,939 15,103 -
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances - - - 11,127 -
Unreserved 241,259 1,531,654 - 365,523 383,330 442,069
TOTALFUND
BALANCES (DEFICIT) 241,259 1,531,654 - 376,650 383,330 442,069
TOTAL LIABILITIES
AND FUND BALANCES $ 241,259 $ 1,531,654 $13,939 $ 391,753 $ 383,330 $ 442,069
See independent auditors' report.
Total
Air Proposition Landscape Other
Quality A Asset Maintenance Special
Improvement CLEEP Transit CDBG COPS Seizure District Revenue Funds
$ 89,762 $ 77,456 $ 982,497 $ - $ 113,605 $ 338,506 $ 269,497 $ 4,716,107
_ _ - 43,479
19,133 - - 61,211 - - 8,588 204,673
- - 186,854 - - - 186,854
$ 108,895 $ 77,456 $ 982,497 $ 248,065 $ 113,605 $ 338,506 $ 278,085 $ 5,151,113
$ 694 $ - $ 279,419 $ 39,509 $ 361 $ - $ 130,585 $ 463,391
562 - 2,018 - - - - 4,860
- 21,701 - - - 21,701
61,211 - - - 75,150
- 186,854 - - - 186,854
1,256 - 281,437 309,275 361 - 130,585 751,956
28,292 - - - _ - 9,900 49,319
79,347 77,456 701,060 (61,210) 113,244 338,506 137,600 4,349,838
107,639 77,456 701,060 (61,210) 113,244 338,506 147,500 4,399,157
$ 108,895 $ 77,456 $ 982,497 $ 248,065 $ 113,605 $ 338,506 $ 278,085 $ 5,151,113
-61-
wr"• • �:ma
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2007
Proposition Integrated Traffic
State C Waste Traffic Congestion
Gas Tax Transit ISTEA Management Improvement Relief
REVENUES:
Special assessments $ - $ $ - $ - $ - $
Intergovernmental revenue 1,075,092 797,919 1,066,605 36,967 382,500 438,520
Charges for services - - - 215,911 - -
Investment income 18,819 73,023 - 20,421 830 17,088
TOTAL REVENUES 1,093,911 870,942 1,066,605 273,299 383,330 455,608
EXPENDITURES:
Current:
Public safety - - - -
Highways and streets - - -
Community development - - - 238,522 - -
TOTAL EXPENDITURES - - - 238,522 - -
EXCESS OF REVENUES
OVER (UNDER)
EXPENDITURES 1,093,911 870,942 1,066,605 34,777 383,330 455,608
OTHER FINANCING
SOURCES ((JSES):
Transfers in - - 277,240 - -
Transfers out (1,243,465) (695,605) (1,066,605) (145,657) - (255,000)
TOTAL OTHER
FINANCING
SOURCES (USES) (1,243,465) (695,605) (789,365) (145,657) - (255,000)
NET CHANGE IN
FUND BALANCES (149,554) 175,337 277,240 (110,880) 383,330 200,608
FUND BALANCES (DEFICITS) -
BEGINNING OF YEAR 390,813 1,356,317 (277,240) 487,530 - 241,461
FUND BALANCES (DEFICIT) -
END OF YEAR $ 241,259 $1,531,654 $ - $ 376,650 $ 383,330 $442,069
See independent auditors' report.
-63-
Total
Air
Proposition
Landscape
Other
Quality
A
Asset
Maintenance
Special
Improvement
CLEEP
Transit
CDBG
COPS
Seizure
District
Revenue Funds
$ _
$ _
$ -
$ _
$ -
$ -
$ 541,382
$ 541,382
71,835
-
959,676
316,948
116,242
-
-
5,262,304
- .
-
786,299
-
-
-
-
1,002,210
6,367
3,500
52,991
-
8,524
15,308
9,857
226,728
78,202
3,500
1,798,966
316,948
124,766
15,308
551,239
7,032,624
-
1,132
-
-
5,833
7,990
-
14,955
-
-
2,036,136
-
-
-
678,115
2,714,251
77,530
-
-
235,019
-
-
-
551,071
77,530
1,132
2,036,136
235,019
5,833
7,990
678,115
3,280,277
672
2,368
(237,170)
81,929
118,933
7,318
(126,876)
3,752,347
-
_
_
-
-
277,240
(21,794)
(180,300)
-
-
(3,608,426)
-
-
-
(21,794)
(180,300)
-
-
(3,331,186)
672
2,368
(237,170)
60,135
(61,367)
7,318
(126,876)
421,161
106,967
75,088
938,230
(121,345)
174,611
331,188
274,376
3,977,996
$ 107,639
$ 77,456
$ 701,060
$ (61,210)
$ 113,244
$ 338,506
$ 147,500
$ 4,399,157
-63-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STATE GAS TAX SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-64-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 1,087,500
$ 1,087,500
$ 1,075,092
$ (12,408)
15,000
15,000
18,819
3,819
1,102,500
1,102,500
1,093,911
(8,589)
(1,755,350)
(1,493,350)
(1,243,465)
249,885
(1,755,350)
(1,493,350)
(1,243,465)
249,885
(652,850)
(390,850)
(149,554)
241,296
390,813
390,813
390,813
-
$ (262,037)
$ (37)
$ 241,259
$ 241,296
-64-
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION C TRANSIT SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
•MM
See independent auditors' report.
-65-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 770,500
$ 770,500
$ 797,919
$ 27,419
20,000
20,000
73,023
53,023
790,500
790,500
870,942
80,442
(914,000)
(1,160,840)
(695,605)
465,235
(914,000)
(1,160,840)
(695,605)
465,235
(123,500)
(370,340)
175,337
545,677
1,356,317
1,356,317
1,356,317
-
$ 1,232,817
$ 985,977
$ 1,531,654
$ 545,677
-65-
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ISTEA SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
TOTAL REVENUES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
• . .
See independent auditors' report.
For the year ended June 30, 2007
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 1,703,845 $ 1,703,845 $ 1,066,605 $ (637,240)
1,703,845 1,703,845 1,066,605 (637,240)
277,240 277,240
(1,703,845) (1,703,845) (1,066,605) 637,240
(1,703,845) (1,703,845) (789,365) 914,480
277,240 277,240
(277,240) (277,240) (277,240) -
$ (277,240) $ (277,240) $ - $ 277,240
-66-
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
INTEGRATED WASTE MANAGEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2007
EXPENDITURES:
Current:
Community development 372,050 372,050 238,522 133,528
TOTAL EXPENDITURES 372,050 372,050 238,522 133,528
EXCESS OF REVENUES OVER
Variance with
(UNDER) EXPENDITURES
(95,050)
Final Budget
34,777
Budgeted Amounts
Positive
OTHER FINANCING USES:
Original Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ 62,000 $ 62,000
$ 36,967
$ (25,033)
Charges for services
200,000 200,000
215,911
15,911
Investment income
15,000 15,000
20,421
5,421
TOTALREVENUES
277,000 277,000
273,299
(3,701)
EXPENDITURES:
Current:
Community development 372,050 372,050 238,522 133,528
TOTAL EXPENDITURES 372,050 372,050 238,522 133,528
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(95,050)
(95,050)
34,777
129,827
OTHER FINANCING USES:
Transfers out
(185,000)
(185,000)
(145,657)
39,343
TOTAL OTHER FINANCING USES
(185,000)
(185,000)
(145,657)
39,343
NET CHANGE IN FUND BALANCE
(280,050)
(280,050)
(110,880)
169,170
FUND BALANCE - BEGINNING OF YEAR
487,530
487,530
487,530
-
FUND BALANCE - END OF YEAR
$ 207,480
$ 207,480
$ 376,650
$ 169,170
See independent auditors' report.
-67-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC IMPROVEMENT SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
For the year ended June 30, 2007
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ - $ 382,500 $ 382,500 $ -
- 830 830
382,500 383,330 830
$ - $ 382,500 $ 383,330 $ 830
!i'f 0
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
For the year ended June 30, 2007
Budgeted Amounts
Original Final
$ - $ 438,520
2,000 8,000
2,000 446,520
(255,000) (693,000) (255,000) 438,000
(253,000) (246,480) 200,608 447,088
241,461 241,461 241,461 -
$ (11,539) $ (5,019) $ 442,069 $ 447,088
-69-
Variance with
Final Budget
Positive
Actual
(Negative)
$ 438,520
$ -
17,088
9,088
455,608
9,088
(255,000) (693,000) (255,000) 438,000
(253,000) (246,480) 200,608 447,088
241,461 241,461 241,461 -
$ (11,539) $ (5,019) $ 442,069 $ 447,088
-69-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 70,000 $ 70,000 $ 71,835 $ 1,835
3,000 3,000 6,367 3,367
73,000
nor nnn
78,202 5,202
81,700 81,700 77,530 4,170
81,700 81,700 77,530 4,170
(8,700) (8,700) 672 9,372
(70,000) (70,000) - 70,000
(70,000) (70,000) - 70,000
(78,700) (78,700) 672 79,372
106,967 106,967 106,967 -
$ 28,267 $ 28,267 $ 107,639 $ 79,372
-70-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CLEEP SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 2,000 $ 2,000 $ 3,500 $ 1,500
2,000 2,000 3,500 1,500
15,000 15,000 1,132 13,868
15,000 15,000 1,132 13,868
(13,000) (13,000) 2,368 15,368
75,088 75,088 75,088 -
$ 62,088 $ 62,088 $ 77,456 $ 15,368
-71-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PROPOSITION A TRANSIT SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Charges for services
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Highways and streets
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
1,368,405
1,868,405
2,036,136
Variance with
1,368,405
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
(237,170)
31,735
$ 927,500
$ 927,500
$ 959,676
$ 32,176
650,000
650,000
786,299
136,299
22,000
22,000
52,991
30,991
1,599,500
1,599,500
1,798,966
199,466
1,368,405
1,868,405
2,036,136
(167,731)
1,368,405
1,868,405
2,036,136
(167,731)
231,095
(268,905)
(237,170)
31,735
75,088
75,088
938,230
863,142
$ 306,183
$ (193,817)
$ 701,060
$ 894,877
-72-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CDBG SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
TOTAL REVENUES
EXPENDITURES:
Current:
Community development
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 522,128 $ 672,128 $ 316,948 $ (355,180)
522,128 672,128 316,948 (355,180)
219,039 369,039 235,019 134,020
219,039 369,039 235,019 134,020
303,089 303,089 81,929 (221,160)
(303,089) (303,089) (21,794) 281,295
(303,089) (303,089) (21,794) 281,295
60,135 60,135
(121,345) (121,345) (121,345) -
$ (121,345) $ (121,345) $ (61,210) $ 60,135
-73-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COPS SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
TOTAL OTHER FINANCING USES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-74-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 100,000
$ 100,000
$ 116,242
$ 16,242
4,000
4,000
8,524
4,524
104,000
104,000
124,766
20,766
7,700
7,700
5,833
1,867
7,700
7,700
5,833
1,867
96,300
96,300
118,933
22,633
(180,300)
(180,300)
(180,300)
-
(180,300)
(180,300)
(180,300)
-
(84,000)
(84,000)
(61,367)
22,633
174,611
174,611
174,611
-
$ 90,611
$ 90,611
$ 113,244
$ 22,633
-74-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ASSET SEIZURE SPECIAL REVENUE FUND
For the year ended June 30, 2007
REVENUES:
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public safety
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 28,000 $ 28,000 $ 15,308 $ (12,692)
28,000 28,000 15,308 (12,692)
25,000 25,000 7,990 17,010
25,000 25,000 7,990 17,010
3,000 3,000 7,318 4,318
331,188 331,188 331,188 -
$ 334,188 $ 334,188 $ 338,506 $ 4,318
-75-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT SPECIAL REVENUE FUND
For the year ended June 30, 2007
See independent auditors' report.
-76-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Special assessments
$ 551,562
$ 551,562
$ 541,382
$ (10,180)
Investment income
13,000
13,000
9,857
(3,143)
TOTAL REVENUES
564,562
564,562
551,239
(13,323)
EXPENDITURES:
Current:
Highways and streets
792,120
704,730
678,115
26,615
TOTAL EXPENDITURES
792,120
704,730
678,115
26,615
EXCESS OF REVENUES OVER
-
(UNDER) EXPENDITURES
(227,558)
(140,168)
(126,876)
13,292
FUND BALANCE - BEGINNING OF YEAR
274,376
274,376
274,376
-
FUND BALANCE - END OF YEAR
$ 46,818
$ 134,208
$ 147,500
$ 13,292
See independent auditors' report.
-76-
Capital Projects Funds are established to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by Special Revenue Funds).
MAJOR FUND:
Capital Improvement Fund - This fund is used to account for the costs of constructing street
improvements, park improvements and other public improvements not normally included within the
other Capital Projects funds. Financing is provided by developer fees and interfund transfers from the
Special Revenue Funds and the General Fund.
-77-
CITY OF DIAMOND BAR
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
For the year ended June 30, 2007
REVENUES:
Intergovernmental revenue
Licenses, permits and fees
TOTAL REVENUES
EXPENDITURES:
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
TOTAL OTHER
FINANCING SOURCES
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) -
END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 1,516,700 $ 1,887,700 $ 579,175 $ (1,308,525)
275,000 275,000 - (275,000)
1,791,700 2,162,700 579,175 (1,583,525)
10,238,189 11,873,339 5,344,935 6,528,404
10,238,189 11,873,339 5,344,935 6,528,404
(8,446,489) (9,710,639) (4,765,760) 4,944,879
8,446,489 9,708,639 3,679,739 (6,028,900)
8,446,489 9,708,639 3,679,739 (6,028,900)
(2,000) (1,086,021) (1,084,021)
(655,322) (655,322) (655,322) -
$ (6551322) $ (657,322) $ (1,741,343) $ (1,084,021)
-78-
Internal Service Funds have been established to finance and account for goods and services provided
by one City department to other City departments or agencies. Funds included are:
Self -Insurance Fund - This fund is used to account for the payments made for the City's general
liability insurance premiums.
Equipment Replacement Fund - This fund is used to account for the replacement of the City's rolling
equipment stock or vehicles.
Computer Re -placement Fund - This fund is used to account for the replacement and/or enhancement of
the City's computer-related equipment.
-79-
rsgw• • �xl
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
ASSETS
CURRENT ASSETS:
Cash and investments
NONCURRENT ASSETS:
Capital assets:
Machinery and equipment
Less accumulated depreciation
TOTAL NONCURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable
NET ASSETS
Invested in capital assets
Unrestricted
TOTAL NET ASSETS
See independent auditors' report.
June 30, 2007
Self- Equipment Computer
Insurance Replacement Replacement Totals
$ 1,610,661 $ 195,835 $ 196,030 $ 2,002,526
182,206 11,417 193,623
(116,077) (11,417) (127,494)
66,129 - 66,129
1,610,661 261,964 196,030 2,068,655
506,763 - - 506,763
- 66,129 - 66,129
1,103,898 195,835 196,030 1,495,763
$ 1,103,898 $ 261,964 $ 196,030 $ 1,561,892
9:11
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS - INTERNAL SERVICE FUNDS
For the year ended June 30, 2007
See independent auditors' report.
-81-
Self-
Equipment
Computer
Insurance
Replacement
Replacement
Totals
OPERATING EXPENSES:
Insurance premiums
$ 370,415
$ -
$ -
$ 370,415
Depreciation
-
24,260
987
25,247
TOTAL OPERATING EXPENSES
370,415
24,260
987
395,662
OPERATING LOSS
(370,415)
(24,260)
(987)
(395,662)
NONOPERATING REVENUES (EXPENSES):
Investment income
63,838
7,760
4,306
75,904
TOTAL NONOPERATING
REVENUES (EXPENSES)
63,838
7,760
4,306
75,904
INCOME (LOSS) BEFORE TRANSFERS
(306,577)
(16,500)
3,319
(319,758)
TRANSFERS IN
200,000
23,342
100,000
323,342
CHANGE IN NET ASSETS
(106,577)
6,842
103,319
3,584
TOTAL NET ASSETS -
BEGINNING OF YEAR
1,210,475
255,122
92,711
1,558,308
TOTAL NET ASSETS - END OF YEAR
$ 1,103,898
$ 261,964
$ 196,030
$ 1,561,892
See independent auditors' report.
-81-
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Insurance payments
NET CASH USED
BY OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers from other funds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Purchase of capital assets
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
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 OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to net cash
used by operating activities:
Depreciation
Changes in operating assets and liabilities:
Increase (decrease) in due to other governments
TOTAL ADJUSTMENTS
NET CASH USED BY
OPERATING ACTIVITIES
See independent auditors' report.
Self- Equipment Computer
Insurance Replacement Replacement Totals
$ (225,008) $ - $ - $ (225,008)
(225,008) - - (225,008)
200,000 23,342 100,000 323,342
200,000 23,342 100,000 323,342
(5,010) - (5,010)
(5,010) - (5,010)
63,838 7,760 4,306 75,904
63,838 7,760 4,306, 75,904
38,830 26,092 104,306 169,228
1,571,831 169,743 91,724 1,833,298
$ 1,610,661 $ 195,835 $ 196,030 $ 2,002,526
$ (370,415) $ (24,260) $ (987) $ (395,662)
24,260 987 25,247
145,407 - - 145,407
145,407 24,260 987 170,654
$ (275,008) $ - $- $ (225,008)
-82-
PULL THIS PAGE AND INSERT TAB FOR
STATISTICAL SECTION
PULL THIS PAGE
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2007
This part of the City of Diamond Bar's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the government's overall financial
health.
Contents:
Pages
Financial Trends - These schedules contain trend information to help the
reader understand how the City's financial performance and well-being have
changed over time. 84-91
Revenue Capacity - These schedules contain information to help the reader
assess the City's most significant local revenue source, the property tax. 92-95
Debt Capacity - These schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt and the City's
ability to issue additional debt in the future. 96-98
Demographic and Economic Information - These schedules offer demographic
and economic indicators to help the reader understand the environment within
which the City's financial activities take place. 99-100
Operating Information - These schedules contain service and infrastructure
data to help the reader understand how the information in the City's financial
report relates to the services the City provides and the activities it performs. 101-102
City of Diamond Bar
Net Assets by Component
Last Five Fiscal Years
(accrual basis of accounting)
* The City implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
(1) As allowed by GASB 34, the value of infrastructure placed in service prior to July 1, 2002 was not included
in the net assets until the fiscal year ended June 30, 2007.
Source: City Finance Department
-84-
Fiscal Year Ended June 30,
2003
2004
2005
2006
Governmental activities:
Invested in capital assets, net of related debt (1)
$ 8,237,553
$ 10,844;807
$ 10,692,694
$ 14,593,935
Restricted for:
Debt service
-
-
245,763
243,697
Capital projects
5,988,178
241,767
3,775,552
3,323,474
Specific programs
-
-
1,398,057
1,296,806
Unrestricted
26,205,849
31,231,827
29,775,169
29,461,178
Total governmental activities net assets
$ 40,431,580
$ 422318,401
$ 45,887,235
$ 48,919,090
* The City implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
(1) As allowed by GASB 34, the value of infrastructure placed in service prior to July 1, 2002 was not included
in the net assets until the fiscal year ended June 30, 2007.
Source: City Finance Department
-84-
Fiscal Year
Ended
June 30,
2007
$375,216,400
321,747
3,446,872
1,013,495
34,072,884
$414,071,398
-85-
City of Diamond Bar
Changes in Net Assets
Last Five Fiscal Years
(accrual basis of accounting)
* The City implemented. GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City Finance Department
-86-
Fiscal Year Ended June 30,
2003
2004
2005
2006
Expenses:
Governmental activities:
$ 3,315,082
$ 3,713,530
$ 3,997,319
$ 4,203,123
General government
Public safety
4,988,449
4,875,823
4,969,183
5,418,005
Highways and streets
1,006,768
1,365,737
4,622,014
5,240,568
Community development
3,370,116
5,724,606
1,050,025
2,759,718
Parks, recreation and culture
2,309,150
2,580,454
3,814,887
3,737,071
Interest and fiscal charges
535,752
171,223
270,735
423,320
Total expenses
15,525,317
18,431,373
18,724,163
21,781,805
Program revenues:
Governmental activities:
Charges for services:
74,805
225,656
486,925
707,272
General government
Public safety
813,617
733,902
1,159,264
1,277,170
Highways and streets
517,930
529,330
1,328,637
1,555,993
Community development
908,330
933,985
7,888
16,841
Parks, recreation and culture
558,227
610,772
1,147,088
1,260,849
Operating grants and contributions
4 390,722
4 >068,446
4,040,785
5,281,308
Capital grants and contributions
1,779,510
261,994
-
1,150
Total program revenues
9,043,141
7,364,085
8,170,587
10,100,583
General revenues:
Taxes:
Property taxes
2,692,723
2,682,872
3,155,723
6,769,553
Transient occupancy taxes
578,680
628,564
717,879
718,889
Sales taxes
2,965,292
3,167,901
2,645,096
2,964,877
Property taxes in lieu of sales taxes
-
-
863,245
984,472
Franchise taxes
828,242
912,531
941,319
996,567
Property transfer tax
367,638
367,464
413,247
416,423
Other taxes
34,989
35,077
35,283
35,522
Unrestricted motor vehicle in lieu
3,370,387
2,716,134
4,386,800
413,230
Investment income
439,455
182,069
532,091
1,051,922
Other revenue
84,795
250,250
676,292
361,622
Total general revenues
11,362,201
10,942,862
14,366,975
14,713,077
Change in net assets
$ 4,880,025
$ (124,426)
$ 3,813,399
$ 3,031,855
* The City implemented. GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
Source: City Finance Department
-86-
Fiscal Year
Ended
June 30,
2007
$ 4,784,314
4,876,435
14,019,550
2,292,757
4,779,588
498,042
31,250,686
262,541
1,512,195
3,493,798
21,297
1,385,788
6,968,824
1,254,314
14,898,757
7,727,580
774,757
2,935,703
1,007,642
1,064,621
331,096
33,822
350,194
1,476,010
41,362
15,742,787
$ (609,142)
-87-
City of Diamond Bar
Fund Balances of Governmental Funds
Last Five Fiscal Years
(modified accrual basis of accounting)
The City has elected to show only five years of data for this schedule.
Source: City Finance Department
-88-
Fiscal Year Ended June 30,
2003
2004
2005
2006
General fund:
Reserved
$ 440,407
$ 866,843
$ 1,125,918
$ 1,310,172
Unreserved
21,913,219
21,796,659
24,809,721
25,103,444
Total general fund
22,353,626
22,663,502
25,935,639
26,413,616
All other governmental funds:
5,719,861
105,861
5,555,988
2,274,829
Reserved
Unreserved, reported in:
Special revenue funds
8,030,278
6,043,352
6,111,202
5,772,953
Debt Service Fund
-
505,915
274,426
Capital projects funds
268,317
241,767
(5,443,309)
(2,612,373)
Total all other governmental funds
14,018,456
6,896,895
6,498,307
5,435,409
Total fund balances
$ 36,372,082
$ 29,560,397
$ 32,433,946
$ 31,849,025
The City has elected to show only five years of data for this schedule.
Source: City Finance Department
-88-
Fiscal Year
Ended
June 30,
2007
$ 1,893,287
28,568,263
30,461,550
3,311,451
6,058,113
(4,681,728)
4,687,836
$ 35,149,386
-89-
City of Diamond Bar
Changes in Fund Balances, Governmental Funds
Last Five Fiscal Years
(modified accrual basis of accounting)
Expenditures:
Current:
General government
Public safety
Highway and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest charges
Fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Bond issued
Bonds discount and issuance costs
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Debt service as a percentage of
noncapital expenditures
3,163,516
3,663,055
Fiscal Year Ended June 30,
4,857,179
1,006,768
2003
2004
2005
2006
Revenues:
8,057,482
9,261,289
Taxes
$ 7,432,575
$ 7,759,331
$ 8,632,837
$ 9,508,757
Special assessments
557,601
555,232
593,778
504,908
Intergovernmental
8,602,856
6,353,152
8,306,557
8,821,141
Charges for services
706,137
709,011
761,040
870,314
Fines and forfeitures
813,617
733,903
713,201
589,922
Licenses and permits
1,467,127
1,457,345
1,732,555
2,389,149
Investment income
658,922
395,929
654,066
1,250,570
Other revenues
74,818
234,951
480,740
792,216
Total revenues
20,313,653
18,198,854
21,874,774
24,726,977
Expenditures:
Current:
General government
Public safety
Highway and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal
Interest charges
Fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):
Bond issued
Bonds discount and issuance costs
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Debt service as a percentage of
noncapital expenditures
3,163,516
3,663,055
4,973,248
4,857,179
1,006,768
1,365,737
1,946,025
2,114,090
2,808,613
3,419,856
8,057,482
9,261,289
3,787,005
3,551,659
4,954,630
5,404,259
4,301,146
4,769,497
2,750,815
2,613,834
1,050,025
2,748,539
1,682,830
5,320,597
- - - 235,000
86,562 145,580 237,487 404,075
1,080,940 - - -
23,123,154 24,826,786 18,763,938 25,047,460
(2,809,501) (6,627,932) 3,110,836 (320,483)
13,755,000 - - -
(769,300) - - -
10,259,848 9,906,970 2,363,367 6,469,523
(10,453,243) (10,090,723) (2,600,654) (6,733,961)
12,792,305 (183,753) (237,287) (264,438)
$ 9,982,804 $ (6,811,685) $ 2,873,549 $ (584,921)
3.61% 0.43% 1.15% 2.06%
The City has elected to show only five years of data for this schedule.
Source: City Finance Department
.M
Fiscal Year
Ended
June 30,
2007
$ 9,876,760
541,382
11,169,052
1,002,210
546,902
4,247,626
1,716,194
767,457
29,867,583
4,402,235
4,880,290
5,114,274
3,475,549
2,292,757
5,344,935
240,000
493,840
26,243,880
3,623,703
6,030,764
(6,354,106)
(323,342)
$ 3,300,361
2.27%
-91-
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
Total
Ended
Net
Tax
Direct
June 30,
Secured
Unsecured
Nommitary
Taxable Values
Exemptions
Rate
1998
$ 3,608,349,286
$ 67,777,550
$ 884,347
$ 3,677,011,183
$ 37,731,129
0.0529°/a
1999
3,692,120,496
74,316,958
876,688
3,767,314,142
38,373,706
0.1529%
2000
3,836,874,815
63,750,454
125,921
3,900,751,190
36,494,583
0.1585%
2001
4,058,203,577
67,345,947
116,405
4,125,665,929
40,088,648
0.1704%
2002
4,286,132,334
71,531,889
127,441
4,357,791,664
41,869,703
0.0502%
2003
4,618,700,097
69,981,865
122,697
4,688,804,659
44,188,829
0.0514%
2004
5,003,437,689
77,407,924
140,122
5,080,985,735
47,621,182
0.0513%
2005
5,370,469,396
76,173,121
174,846
5,446,817,363
39,831,091
0.0513%
2006
5,791,564,163
83,223,023
163,090
5,874,950,276
51,408,286
0.0519%
2007
6,331,041,269
90,751,985
134,088
6,421,927,342
28,682,577
0.0519%
Net Assessed Value
$7,000,000,000
$6,000,000,000
$5,000,000,000
ORR
$4,000,000,000 x
$3,000,000,000
$2,000,000,000
$1,000,000,000
O
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Exempt values are not included in Total Net Taxable Values.
The assessed valuation data shown above represents the only data currently available with respect to the actual
market value of taxable property and is subject to the limitations described above.
Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone
-92-
�"t^�
r
� i �.;CSL
u-
f
,
=
��
red,
� rw
"ySC
it
Exempt values are not included in Total Net Taxable Values.
The assessed valuation data shown above represents the only data currently available with respect to the actual
market value of taxable property and is subject to the limitations described above.
Source: Los Angeles County Auditor/Controller, Hdl Coren & Cone
-92-
City of Diamond Bar
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Value)
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared
by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners
are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for the
Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school
district the property is located in.
The City has elected to show only one year of data for this schedule.
Sources: Hdl Coren & Cone
LA County Property Tax Statement
-93-
Fiscal Year
Ended
June 30,
2007
Direct Rates:
0.05294
City of Diamond Bar basic rate
Overlapping Rates:
0.00271
Children's Institutional Tuition Fund
Consolidated Fire Protection
0.16936
County Lighting Maintenance
0.02016
County Sanitation Dist 21
0.01221
County school service - Walnut Valley
0.00894
Development Ctr Handicapped Minor
0.00083
Educational Augmentation Fund
0.21072
LA County Library
0.02237
LA County Capital Outlay
0.00 11
LA County Fire
0.006616
LA County Flood Control
0.01094
LA County General
0.24908
Mt San Antonio Children's Center
0.00028
Mt San Antonio Community College
0.02926
Southeast Mosquito Abatement
0.00035
Three Valley Municipal Water
0.00409
Walnut Valley Unified School Dist
0.19057
Walnut Valley Water Dist
0.00892
Total Prop. 13 Rate
1.00000
Detention Facilities 1987 Debt S
0.00066
LA County Flood Control Storm Dist #4
0.00005
Mt San Antonio Ccd Ds 2005 Ref Bond
0.01536
Mt San Antonio Ccd Ds 2001 & 2006 Series C
0.00503
Mt San Antonio Ccd Ds 2001 S-A
0.00346
Mt San Antonio Ccd Ds 2004-B
0.00146
Three Valley Municipal Water - 1112
0.00470
Walnut Valley Unified School Dist 2000 Series E
0.00033
Walnut Valley Unif Ds 2005 Ref Bonds
0.00778
Walnut Valley Unif Ds Series 1997 A
0.05834
Walnut Valley Unified School Dist Ds 2000 Series A
0.00283
Walnut Valley Unified School Dist Ds 2000 Series B
0.00248
Walnut Valley Unified School Dist Ds 2000 Series D
0.00828
Walnut Valley Unified School Dist Ds 2000 Series C
0.00744
Total Voter Approved Rate
0.11820
Total Tax Rate
1.11820
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared
by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners
are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for the
Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school
district the property is located in.
The City has elected to show only one year of data for this schedule.
Sources: Hdl Coren & Cone
LA County Property Tax Statement
-93-
Current Taxpayers
Behringer Harvard Western Portfolio
Hampton Apartments at Diamond Bar
CRP -2 Holdings CC
GEM Gateway Limited Inc.
Hidden Manna Corporation
Muller Rock 2 Gateway
Danari Diamond Bar LLC
Millennium Diamond Road Partners LLC
J.F. Shea Company Inc.
Margaret M. Tam Trust, Et. Al.
Taxpayers Ten Years Ago
Diamond Bar Business Associates
M & H Realty Partners II
Hidden Manna Corporation
J.F. Shea Company Inc.
PGP Inland Communities
Nikko Capital Corporation
Martin Brattrud Properties
Lincoln Emerald Pointe
TCEP H Properties Joint Venture
Nugit Trust
City of Diamond Bar
Top 10 Property Taxpayers
Current Year and Ten Years Ago
2006-07
Assessed Valuation
Percentage of Total
Net Assessed Valuation
$ 39,150,000
0.61%
34,855,141
0.54%
28,119,840
0.44%
26,283,641
0.41%
24,231,313
0.38%
23,551,362
0.37%
19,518,942
0.30%
17,646,000
0.27%
16,398,921
0.26%
16,241,200
0.25%
$ 245,996,360
3.83%
1996-97
Assessed Valuation
Percentage of Total
Net Assessed Valuation
$ 29,535,399
0.79%
20,666,119
0.55%
19,000,721
0.51%
12,168,275
0.33%
11,946,050
0.32%
11,585,739
0.31%
10,686,250
0.29%
10,562,250
0.28%
10,196,519
0.27%
9,604,613
0.26%
$ 145,951,935
3.91%
Source: Hdl Coren & Cone, Los Angeles County Assessor 2006/07 combined tax rolls.
-94-
City of Diamond Bar
Secured Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Fiscal Year
Ended
Total
June 30
Current Levy
1998
$ 1,781,264
1999
1,810,266
2000
1,904,915
2001
1,954,530
2002
2,129,310
2003
2,301,716
2004
2,504,974
2005
2,698,515
2006
2,921,267
2007
3,204,812
$3,500,000
$3,000,000
$2,500,000
U7
m $2,000,000
N
D
L $1,500,000
H
$1,000,000
$500,000
Collected within the
Delinquent &
Fiscal Year of Levy
^'aeiyMf
' 7N 5MON.,
Ri
44
Collections in
Amount
% to Levy
Subsequent Years
$ 1,680,816
94.36%
$ 100,448
1,758,764
97.16%
51,502
1,813,904
95.22%
91,011
1,847,817
94.54%
106,713
2,017,399
94.74%
111,911
2,211,793
96.09%
89,923
2,390,554
95.43%
114,420
2,568,064
95.17%
130,450
2,615,545
89.53%
305,722
2,948,678
92.01%
256,135
Total Secured Property Tax Collections
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Source: Los Angeles County Auditor/Controller.
-95-
Sol
^'aeiyMf
' 7N 5MON.,
Ri
44
y
C
ro
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Source: Los Angeles County Auditor/Controller.
-95-
City of Diamond Bar
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Notes:
(a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements.
(b) Details regarding the City's population and per capita income can be found in the Demographic and Economic
Statistics Table.
Source: City Finance Department
IM
Governmental Activities
Fiscal Year
Lease Other
Total
Total
% of
Debt
Ended
Revenue Bond and Governmental
Primary
Per Capita
Per
June 30
Bonds (a) Loans
Activities
Government
Income (b)
Capita (b)
1998
$ - $ - $
-
$ -
0.00%
$ -
1999
- -
-
-
0.00%
-
2000
- -
-
-
0.00%
-
2001
- -
-
-
0.00%
-
2002
13,755,000 -
13,755,000
13,755,000
0.74%
237
2003
13,755,000 -
13,755,000
13,755,000
0.77%
233
2004
13,755,000 -
13,755,000
13,755,000
0.81%
232
2005
13,655,000 -
13,655,000
13,655,000
0.79%
229
2006
13,520,000 -
13,520,000
13,520,000
0.78%
226
2007
13,280,000 -
13,280,000
13,280,000
0.75%
221
Notes:
(a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements.
(b) Details regarding the City's population and per capita income can be found in the Demographic and Economic
Statistics Table.
Source: City Finance Department
IM
City of Diamond Bar
Direct and Overlapping Debt
June 30, 2007
(unaudited)
Report reflects general obligation debt which is being repaid through voter -approved indebtness.
It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded
capital lease obligations and certificates of participation.
* The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city.
Sources: Hdl Coren & Cone
City Finance Department
-97-
Gross Bonded
% Applicable
Net Bonded
Debt Balance
To City
Debt
Direct Debt
Diamond Bar Lease Revenue Bond
$ 13,280,000
100.000
$
13,280,000
Overlapping Debts*
LA Co Flood Control Storm Dr. D.S. #4
370,000
0.825
3,052
Metropolitan Water District Three Valley Area 1112
165,681,509
0.877
1,452,287
Mt San Antonio Community College District 2001 Series A
5,585,000
10.629
593,640
Mt San Antonio Community College District 2004 Series B
16,040,000
10.604
1,700,938
Mt San Antonio Community College District DS 05 Ref Bd
75,295,843
10.604
7,984,634
Mt San Antonio Community College District DS 01, 06 Ser C
79,996,203
10.619
8,494,538
Pomona Unified School District Refund Series 1997A
39,655,000
20.161
7,994,776
Pomona Unified School District 2002 Series A
18,920,000
20.161
3,814,429
Pomona Unified School District 1998 Series D Debt Service
370,000
20.161
74,595
Pomona Unified SD Refunding 2001 Series A Debt Service
20,280,000
20.161
4,088,616
Pomona Unified School District 2002 Series A Debt Service
9,025,000
20.161
1,819,515
Pomona Unified School District 2002 Series B
13,965,000
20.161
2,815,460
Pomona Unified School District 2002 Series C
14,405,000
20.161
2,904,167
Pomona Unified School District 2002 Series D
14,710,000
20.161
2,965,658
Pomona Unified School District 2002 Series E
22,302,278
20.161
4,496,324
Walnut Valley Unified School District Refund Series 1997 A
34,122,718
58.372
19,918,107
Walnut Valley Unified School District 2000 Series A
825,000
58.372
481,569
Walnut Valley Unified School District 2000 Series B
590,000
58.372
344,395
Walnut Valley Unified School District 2000 Series C
7,370,000
58.372
4,302,015
Walnut Valley Unified School District 2000 Series D
21,918,114
58.372
12,794,038
Walnut Valley Unified School District 2000 Series E
6,001,837
58.372
3,503,391
Walnut Valley Unified School District 2005 Ref Bonds
11,895,000
58.372
6,943,347
Total Direct and Overlapping Bonded Debt
$ 592,603,502
$
112,769,491
2006/07 Net Assessed Valuation: $ 6,421,927,342
Ratio
Per Capita
Debt to Assessed Valuation Ratios:
Direct Debt
0.21%
$
221
Overlapping Debt
1.55%
$
1,652
Total Debt
1.76%
$
1,873
Report reflects general obligation debt which is being repaid through voter -approved indebtness.
It excludes, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded
capital lease obligations and certificates of participation.
* The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city.
Sources: Hdl Coren & Cone
City Finance Department
-97-
Net assessed value
Add back: Exemptions
Gross assessed value
Conversion percentage
Adjusted assessed
valuation
Debt limit percentage
Debt limit
City Debts:
Revenue bonds
Legal debt margin
Net assessed value
Add back: Exemptions
Gross assessed value
Conversion percentage
Adjusted assessed
valuation
Debt limit percentage
Debt limit
City Debts:
Revenue bonds
Legal debt margin
City of Diamond Bar
Computation of Legal Debt Margin
Last Ten Fiscal Years
(unaudited)
Fiscal Year Ended June 30,
1998 1999 2000 2001 2002
$ 3,677,011,183
$ 3,767,314,142
$ 3,900,751,190
$ 4,125,665,929
$ 4,357,791,664
37,731,129
38,373,706
36,494,583
40,088,648
41,869,703
3,714,742,312
3,805,687,848
3,937,245,773
4,165,754,577
4,399,661,367
25%
25%
25%
25%
25%
928,685,578
951,421,962
984,311,443
1,041,438,644
1,099,915,342
15%
15%
15%
15%
15%
139,302,837
142,713,294
147,646,716
156,215,797
164,987,301
- 13,755,000
$ 139,302,837 $ 142,713,294 $ 147,646,716 $ 156,215,797 $ 151,232,301
Fiscal Year Ended June 30,
2003 2004 2005 2006 2007
$ 4,688,804,659
$ 5,080,985,735
$ 5,446,817,363
$ 5,874,950,276
$ 6,421,927,342
44,188,829
47,621,182
39,831,091
51,408,286
28,682,577
4,732,993,488
5,128,606,917
5,486,648,454
5,926,358,562
6,450,609,919
25%
25%
25%
25%
25%
1,183,248,372
1,282,151,729
1,371,662,114
1,481,589,641
1,612,652,480
15%
15%
15%
15%
15%
177,487,256
192,322,759
205,749,317
222,238,446
241,897,872
13,755,000
13,755,000
13,755,000
13,520,000
13,280,000
$ 163,732,256
$ 178,567,759
$ 191,994,317
$ 208,7187446
$ 228,617,872
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However,
this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal
year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The
computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation
the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local
government located within the state.
Sources: Section 43605 of the California Government Code
Hdl Coren & Cone
City Finance Department
-98-
City of Diamond Bar
Demographic and Economic Statistics
Last Ten Calendar Years
Per
Personal
Capita
Total
Calendar
Population
Employment
Year
(1)
(2)
1998
57,271
30,200
1999
58,300
30,700
2000
56,287
29,700
2001
57,066
30,100
2002
58,115
29,700
2003
58,966
29,900
2004
59,399
29,900
2005
59,595
30,700
2006
59,722
31,400
2007
60,207
31,800
Per
Personal
Capita
Unemployment
Income
Personal
Rate
(3)
Income (3)
(4)
Unavailable
Unavailable
4.20%
$ 68,957 $
25,472
4.00%
71,911
25,500
3.70%
Unavailable
Unavailable
3.80%
86,741
31,870
4.90%
Unavailable
30,176
5.10%
73,359
28,482
4.70%
74,941
28,906
3.60%
84,297
29,086
3.20%
99,987
29,472
3.40%
Sources: (1) State Department of Finance
(2) California LaborMarketlnfo, Data Library
(3) Diamond Sar City, California - Fact Sheet - American FactGFinder (http://factfinder.census.gov)
(4) State of California - Labor Market Info
-99-
City of Diamond Bar
Principal Employers*
(unaudited)
Last Two Fiscal Years
"Total Employment" as used above represents the total employment of all employers located within City limits.
* The City implemented GASB 44 for the fiscal year ended June 30, 2006. Information prior to the implementation
of GASB 44 is not available.
Source: InfoUSA - Government Division
2006
2007
Number of
Number of
% of Total
Employer
Employees
Employees
Employment
South Coast Air Quality Management
750
762
2.40%
Acosta Sales & Marketing
450
450
1.42%
St Paul Travelers
401
402
1.26%
Target Store - Diamond Bar
0
220
0.69%
Diamond Bar High School
200
200
0.63%
Lab Support Inc
200
200
0.63%
J.F. Shea Co., Inc.
135
135
0.42%
Baybrook Services
120
120
0.38%
Goodrich Hoist & Winch
120
120
0.38%
Southwest Patrol
120
120
0.38%
Starside Security & Investigation
120
120
0.38%
Administaff
120
120
0.38%
Biosense Webstar Inc
100
100
0.31%
Century 21 Diamond Realty
100
100
0.31%
DACOR
100
100
0.31%
FIN -West Group
100
100
0.31%
First Mortgage Corp.
100
100
0.31%
"Total Employment" as used above represents the total employment of all employers located within City limits.
* The City implemented GASB 44 for the fiscal year ended June 30, 2006. Information prior to the implementation
of GASB 44 is not available.
Source: InfoUSA - Government Division
Function
General government
Community development
Community services
Public works
Total
Function
General government
Community development
Community services
Public works
Total
City of Diamond Bar
Full-time and Part-time City Employees
Last Ten Fiscal Years
Fiscal Year Ended June 30,
1998
1999
2000
2001
2002
23
22
21
24
24
3
5
6
4
4
13
12
41
38
37
3
4
4
4
4
42
43
72
70
69
Fiscal Year Ended June 30,
2003
2004
2005
2006
2007
24
25
25
22
21
4
5
7
8
8
38
45
74
77
74
5
6
7
7
8
71
81
113
114
ill
Police services were contracted with the Los Angeles County Sheriffs Departments.
Building and safety services were contracted with D & J Municipal Services Inc.
Fire services were provided by the County Fire District.
Source: City Finance Department
-101-
City of Diamond Bar
Operating Indicators
Last Ten Fiscal Years
Police: (in calendar year) (1)
Arrests
Street Sweeping Parking Citation
Fire: (in calendar year) (2)
Number of emergency calls
Inspections
Public works: (in fiscal year) (3)
Street resurfacing (miles)
Parks and recreation: (in fiscal year) (4)
Number of recreation classes
Number of facility rentals
Police: (in calendar year) (1)
Arrests
Street Sweeping Parking Citation
Fire: (in calendar year) (2)
Number of emergency calls
Inspections
Public works: (in fiscal year) (3)
Street resurfacing (miles)
Parks and recreation: (in fiscal year) (4)
Number of recreation classes
Number of facility rentals
(a) Unavailable
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dept East Regional Operation Bureau
(3) City Public Works Department
(4) City Community Services Department
Fiscal Year Ended June 30,
1998
1999
2000
2001
2002
747
723
817
764
571
(a)
(a)
(a)
2,996
7,995
(a)
(a)
(a)
2,647
2,666
(a)
(a)
(a)
(a)
(a)
(a)
20.6
23.0
24.6
19.7
700
740
1,084
1,062
947
785
785
785
785
785
Fiscal Year Ended June 30,
2003
2004
2005
2006
2007
552
481
520
558
582
6,662
6,710
6,250
5,790
5,684
2,741
2,755
2,615
2,592
2,612
(a)
1,206
1,159
837
1,114
18.5
5.0
18.6
16.8
19.6
-102-
915 1,022 1,102 1,376 1,558
1,021 1,736 4,123 4,305 4,555