HomeMy WebLinkAboutCAFR - FY 2010-11CITY OF DIAMOND BAR
. 91►vilaS4:14zRi1y1W-1hill �1lL10111a1►1_1►Is] L10N:1191:41
FOR THE YEAR ENDED
JUNE 30, 2011
Prepared by:
Finance Department
Glenn Steinbrink
Interim Director of Finance
CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2011
Prepared by:
Finance Department
Glenn Steinbrink
Interim Director of Finance
CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letterof Transmittal.................................................................................................................................i
GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................. vi
OrganizationChart................................................................................................................................vii
List of Elected and Administrative Officials.......................................................................................... viii
FINANCIAL SECTION
Independent Auditor's Report.................................................................................................................1
Management's Discussion and Analysis (Required Supplementary Information)..................................3
BASIC FINANCIAL STATEMENTS
Government -wide Financial Statements
Statementof Net Assets..........................................................................................................15
Statementof Activities..............................................................................................................16
Fund Financial Statements
Balance Sheet — Governmental Funds....................................................................................18
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets................................................................................................21
Statement of Revenues, Expenditures, and Changes in Fund Balances................................22
Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities
.............................24
Budgetary Comparison Statement - General Fund................................................................25
Budgetary Comparison Statement — Traffic Improvement Fund............................................26
Budgetary Comparison Statement — Proposition 1 B Bond Fund...........................................27
Statement of Net Assets — Proprietary Funds..........................................................................28
Statement of Revenues, Expenses, and Changes in Fund Net
Assets — Proprietary Funds......................................................................................................29
Statement of Cash Flows — Proprietary Funds........................................................................30
Notes to Basic Financial Statements..........................................................................................31
CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
Page(s)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds.....................................................54
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds.......................................................................60
Budgetary Comparison Schedules - Special Revenue Funds:
StateGas Tax Fund.................................................................................................................65
Proposition A Transit Fund......................................................................................................66
Proposition C Transit Fund.....................................................................................................67
Integrated Waste Management Fund......................................................................................68
Traffic Congestion Relief Fund...............................................................................................69
Air Quality Improvement Fund.................................................................................................70
Park and Facility Development Fund.......................................................................................71
Community Development Block Grant (CDBG) Fund.............................................................72
Citizens Option for Public Safety (COPS) Fund......................................................................73
AssetSeizure Fund..................................................................................................................74
California Law Enforcement Equipment Program (CLEEP) Fund...........................................75
Edward Byrne Justice Assistance Grant Fund........................................................................76
Landscape Maintenance District Fund.....................................................................................77
Measure R Local Return Fund.................................................................................................78
EECBGFund...........................................................................................................................79
Budgetary Comparison Schedule — Capital Projects Funds:
Capital Improvement Fund.......................................................................................................80
Budgetary Comparison Schedule —Debt Service Funds:
Public Financing Authority.......................................................................................................81
Combining Statement of Net Assets — Internal Service Funds...................................................82
Combining Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Internal Service Funds..................................................................................83
Combining Statement of Cash Flows — Internal Service Funds..................................................84
CITY OF DIAMOND BAR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends:
Page(s)
Net Assets by Component - Last Nine Fiscal Years...................................................................86
Changes in Net Assets - Last Nine Fiscal Years........................................................................88
Fund Balances of Governmental Funds - Last Nine Fiscal Years..............................................90
Changes in Fund Balances of Governmental Funds - Last Nine Fiscal Years ...........................92
Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years
.................95
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years.........................................96
Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago ............................
98
Secured Property Tax Levies and Collections — Last Ten Fiscal Years.....................................99
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ...................................................100
Directand Overlapping Debt.....................................................................................................101
Computation of Legal Debt Margin - Last Ten Fiscal Years .....................................................102
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years ..........................................103
Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago ....................................104
Operating Information:
Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years .............................105
Operating Indicators by Function - Last Ten Fiscal Years ........................................................106
Capital Asset Statistics by Function - Last Eight Fiscal Years..................................................107
THIS PAGE INTENTIONALLY LEFT BLANK
December 2, 2011
City of Diamond Bar
21825 Copley Drive • Diamond Bar, CA 91765-4178
(909) 839-7000 • Fax (909) 861-3117
www.Cityof Diamond Bar.com
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, 2011. 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 Lance, Soll, &
Lunghard, LLP, 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, 2011, 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, 2011, were fairly presented
ac
RMded paper
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 55,766, 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.
ECONOMIC CONDITION AND OUTLOOK
The continuing recession has had a significant impact on the national, state and local
economies. Retail sales were down and unemployment numbers reached new heights.
This along with the major budget shortfalls experienced by the State, continue to be a
major concern to the City of Diamond Bar.
Recent headlines have been filled with news about the stalled economy and continued
revenue shortfalls at the State level. With the status of State funds as uncertain as ever,
it is anticipated that more of the financial burden will fall upon municipal agencies.
This is evidenced by the State's continuing shifting of funds. The City's FY2011-2012
budget has been developed keeping this in mind. The operating budget was kept at or
below the prior year's levels, and reflects the loss of Vehicle License Fees revenues
taken by the State to balance their own budget. The taking of City revenues by the State
are yet to be decided by the court system, since several lawsuits are awaiting hearings.
The City's sales tax base has stopped declining, but the growth in sales tax is modest at
best, with an increase of just over 1% in the 11/12 budget. The City's interest in
promoting economic development has become increasingly more difficult with the
tightening of credit and poor retail sales outlook. Since the City is located at a major
freeway interchange several of the City's major sales tax producers are service stations,
so the price of gasoline greatly influences the sales tax revenue received. It has been
the City's economic development goal to diversify its sales tax base. Despite the slow-
down in the economy, the City continues to explore economic development
opportunities for the City.
In October 2007, Majestic Realty announced its plans to develop a professional football
stadium based entertainment, retail and office development in the neighboring city, City
of Industry. Although the project is stalled due to a walkout by the players association,
the City is mindful of the potential impacts a development of this nature would bring.
The City will be seriously impacted by increased traffic since the primary access to the
venue will be at the Orange (SR57) and Pomona (SR -60) interchange located within the
City of Diamond Bar. To mitigate these concerns, the City has a settlement agreement
with the City of Industry addressing environmental and operational concerns. This
agreement provides much needed funding for traffic improvements, noise mitigation,
and future funding for City facilities.
New contracts with the City's trash haulers came into effect in early FY10-11. These
contracts enacted a franchise fee which the City had never received previously which is
unlike many other cities in the area. These new agreements will provide much needed
funds to assist in providing services.
Part of the fallout from the economic decline is the decline in property values. This has
provided the City with an opportunity to purchase a building at a great savings. This
50+ thousand square foot building will provide a permanent home for the City of
Diamond Bar's City Hall. City Hall will occupy a little over half of the building. The
balance of the space will house the Diamond Bar Branch of the County Library, based
upon an agreement reached during the year for the relocation of the library which was
finally approved by the County. Escrow closed on the purchase in September, 2010.
The City used available General Fund reserves to pay cash for the building. Staff is
expected to move into the new facility by the end of calendar 2011.
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.
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, 2010. 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.
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 sixteen
consecutive years (fiscal years ended 1995 through 2010). 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.
-iv-
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.
INTERNAL CONTROLS
The City of Diamond Bar's accounting system has been developed by giving
consideration to the adequacy of internal accounting controls. Internal accounting
controls are implemented by the City to provide reasonable assurance that assets are
safeguarded against loss from unauthorized use or disposition; and that the City's
financial records used for preparing financial statements are maintained in a reliable
fashion. The concept of reasonable assurance recognizes that the cost of these controls
should not exceed the benefits derived from them. The City's internal controls
accomplish these objectives.
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, Lance, Soll, and Lunghard, 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,
James DeStefano
City Manager
WA
K7� � i�,, - �', I �, I
d� I kmi�
I
Presented to
v
a �A p,o ,I i air
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
*&r 4eoom- ---
Executive Director
-VI-
L-
-F-r
* T
L
E
E °J
q.d
L Vl
T
L
�N
0
Q
C
G>1
tut
o
V
C
� u
C
E
0
N_
� o
2 a�
m
L
To
O O
s
L
C
V
c
7
i.i
LZQ
L-
-F-r
o�
L
E
E °J
q.d
L Vl
T
E T
O. u
O C
v �
bA
Q
C
G>1
tut
o
_
C
� u
E
0
N_
� o
2 a�
m
L
To
L
V
c
i.i
L-
-F-r
M
W
L
C
E
E
o
_
0
N_
To
L
},
VO
CITY OF DIAMOND BAR
ELECTED AND ADMINISTRATIVE OFFICIALS
FISCAL YEAR 10-11
Mayor
Steve Tye
Mayor Pro Tern
Ling -Ling Chang
Councilmember
Ron Everett
Councilmember
Carol Herrera
Councilmember
Jack Tanaka
City Manager James DeStefano
Assistant City Manager David Doyle
City Clerk Tommye Cribbins
Director of:
Community Services Bob Rose
Community Development Greg Gubman
Finance Glenn Steinbrink
Information Systems Ken Desforges
Public Works David Liu
-viii-
��'
LSE •
CERTIFIED PUBLIC ACCOUNTANTS
Brandon W. Burrows, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
Bryan S. Gruber, CPA
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of City Council
City of Diamond Bar, California
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of City of Diamond Bar, California, as of and for the year
ended June 30, 2011, which collectively comprise the City's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of City of Diamond Bar, California'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 the significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the 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, 2011, and the respective changes
in financial position, thereof and the respective budgetary comparison for the General Fund, Traffic
Improvement Fund, and Proposition 1B Fund for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
December 2, 2011, on our consideration of the City of Diamond Bar, California's internal control over
financial reporting and on 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 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.
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquires, the basic financial statements,
Lance, Sall & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslcpas.com
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
LSL -
CERTIFIED PUBLIC FCCBUNTA TS
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Diamond Bar, California's financial statements as a whole. The introductory section,
combining and individual nonmajor fund financial statements, and statistical section, are presented for
purposes of additional analysis and are not a required part of the financial statements. The combining and
individual nonmajor fund financial statements are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated in all material respects in relation to the financial statements as a whole. The introductory and
statistical sections have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Brea, California
December 2, 2011
2
Management's Discussion and Analysis
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, 2011. 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
• The total governmental fund revenues from all sources equaled
$25,035,214.
• The total governmental fund cost of all City programs equaled
$33,040,359.
• The assets of the City of Diamond Bar exceeded its liabilities at the
close of the fiscal year by $410,783,597 (net assets). Of this amount,
$22,582,318 (unrestricted net assets) may be used to meet the City's
ongoing obligations to citizens and creditors.
• As of the close of the current fiscal year, the City of Diamond Bar's
governmental funds reported combined ending fund balances of
$27,118,862, a decrease of $8,611,173 in comparison with the prior
year, due to the cash purchase of a building to house the new City Hall
and the Diamond Bar branch of the Los Angeles County Library.
Approximately $16.4 million of the $27.1 million is available for
spending at the City's discretion.
• At the end of the current fiscal year, unassigned fund balance for the
general fund was $16,726,964, or over 94% of the amount of general
fund expenditures (net of the purchase of a new City Hall building in
2010-11). The General Fund balance unassigned balance of $16.7
million is in addition to a $4.5 million reserve for emergencies as
established by City Council resolution.
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.
3
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 related 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).
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 or
enterprise funds.
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 fund 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
0
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.
Proprietary 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.
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 Information — 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 $410,783,597 at the close of 2011. (see Table 1)
By far the largest component of the City's net assets (93 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
5
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 BAR'S
Statement of Net Assets
Current and other assets
Capital assets
Total Assets
Long-term debt outstanding
Other Liabilities
Total Liabilities
Net assets:
Invested in capital assets, net of debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
2011 2010
$33,980,249 $44,579,964
393,974,202 390,209,829
427, 954,451 434, 789, 793
12, 069, 674 12, 383, 585
5,101,180 6,383,586
17,170,854 18,767,171
381,985,940 377,940,738
6,215,339 3,866,274
22,582,318 34,215,610
$410,783,597 $416,022,622
The City's Net Assets decreased by $5,239,025. This decrease is due to the
use of General Fund reserves for the purchase of an office building to house
the new City Hall/County Library facilities.
At the end of fiscal year 2011 the City reports a decrease of $11,633,292 in
unrestricted net assets from the prior fiscal year. The City has continually
expended its resources conservatively in anticipation of economic downturns
and future capital needs which has resulted in being able to end the year with
$22,582,318 in Unrestricted Net Assets. This year by using some of its
resources the City was able to preserve service levels and continue to
maintain its assets at the level the citizens of Diamond Bar have enjoyed
since incorporation 22 years ago. This conservation of funds has afforded the
City the enviable opportunity to purchase a building for City Hall from its
reserves.
N
Table 2
City of Diamond Bar's
Changes in Net Assets
2011
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues
Property taxes
Transient occupancy taxes
Sales Taxes
Franchise Taxes
Other taxes
Motor vehicle in lieu
Use of money & property
Other
Total revenues
Expenses:
General Government
Public Safety
Highways and Streets
Community Development
Parks, Recreation and Culture
Interest and Fiscal Charges
Total expenses
Increase (Decrease) in net assets
Net assets - 0701/10 & 07/01/09
Restatement of Net Assets
Net assets - 06/30/11 & 06/30/10
$5,861,621
3,685,378
40,779
4,187,896
642,509
3,355,127
1,259,471
172,687
4,766,225
474,598
91,975
2010
$4,991,932
4,358,895
15,960,279
3,837,288
569,916
3,122,229
1,115,980
259,384
4,599,922
618,963
7,090
24,538,266 39,441,878
6,370,986
4,973,685
5,591,049
5,526,099
10,619,860
12,287,325
1,969,540
1,624,547
5,153,264
5,091,215
72,592
57,948
29,777,291
29,560,819
(5,239,025)
9,881,059
416,022,622
407,026,659
(885,096)
$410,783,597
$416,022,622
Revenues
In the Statement of Activities, the City's total revenues were $24.5 million,
while the total cost of all programs and services was $29.8 million. Revenues
this fiscal year were 38% lower than those of the prior year. This significant
decrease was primarily due to the capital contribution of infrastructure for the
annexed Crestline area in the prior fiscal year. If this contribution was
excluded from the prior year total then the revenues would be $23.7 million,
which produces a $879,052 (3.72%) increase in current year revenues from
the previous year. There were increases and decreases across the revenue
categories which resulted in the overall change in revenue. The following are
highlights of some of the major differences:
7
• As anticipated, Property Tax revenues were up slightly from
FY09-10. This was due to an increase in the consumer price index
which allowed the County to increase assessed valuations by .75%.
• Transient Occupancy Taxes made a very positive turnaround in
10/11 as the local economy stabilized and business and vacation
travel increased.
• Sales Tax and Property Tax in Lieu of Sales taxes were both higher
for the fiscal year. Sales tax was up about 7.5% due to higher
gasoline prices and a slight improvement in the local economy.
Property taxes in Lieu of Sales taxes was up about 1.4% from the
prior fiscal due to the slight improvement in the economy, and thus
a greater allocation based upon projections by the State.
• Lease revenue included in the Use of Money and Property category
is derived from the lease payments made to cover the debt service
on the outstanding variable rate lease revenue bonds. As the
interest rates have dropped the City has experienced a similar drop
in the interest paid for these bonds. The interest rate on the bonds
had fallen to record lows in 2010-11. Since the interest rates were
at record lows, the City refinanced the variable rate debt into a fixed
rate in 2011-12, in order to eliminate interest rate risk, remarketing
risk, and the risk of not being able to secure a letter of credit for the
variable rate bonds.
• Investment Income decreased once again due to the drop in
investment yields in the overall market, as well as the drop in the
City portfolio as a result of the cash purchase of a building to house
the new City Hall and County Library. Interest rates started falling
during FY07-08 and have continued to drop. At the end of FY08-09
the City was earning 1.377% average yield on a majority of its
investments. By the end of FY09-10, the average yield on its
investments had dropped to .70%, and at the end of FY10-11was
down to .56%.
Expenses
Due to the stagnant economy it was anticipated that the City's revenues
would continue to grow, albeit at a very slow pace. As a result, the City has
continued to be very diligent in controlling growth in expenditures. This year
expenditures for the City totaled $29.8 million which is approximately
$216,000, or only .7% greater than the previous fiscal year. There were both
increases and decreases in the various categories. The following are the
highlights of the major differences:
0
• There was an increase in Public Safety expenditures of approximately
1.2% this year. Contract rates with the L.A. County Sheriff's
Department rose 2% this fiscal year. This increase however was
slightly offset by savings in other areas of the public safety budget.
• Streets and Highways category was lower this year by a little over $1.6
million.
• Community Development expenditures were higher in 2010-11 by
$344,993. The increase reflects a slight upturn in the local economy,
which resulted in a greater amount of building activity than in the prior
fiscal year.
• The City continued to enjoy the benefits of low interest rates on the
outstanding variable rate lease revenue bonds. However, costs
continued to increase for letter of credit fees, and the interest rate cap
purchased in 2002 was set to expire at the end of calendar 2012. Due
to record low interest rates in 2011, the City refinanced the variable
rate debt into a fixed rate on December 1, 2011.
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 $27,118,862,
a decrease of $8,611,173 in comparison with the prior year. Of this amount,
there is $1,050,235 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 unassigned fund balance of the general
fund was $16,768,415, while the total fund balance was $21,268,415. As a
measure of the general fund's liquidity, it may be useful to compare both
unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 93.6% of total general fund
expenditures (net of the purchase of a building for City hall), while total fund
balance represents 118.7% of the same amount.
9
Since the City's incorporation in 1989, the City has been fiscally conservative
contributing to healthy fund balance reserves. Several years ago the City
chose to fund major maintenance projects from General Fund reserves when
other funds were not available for this purpose. This fiscal year General Fund
Reserves dropped $9,592,433, but after netting out the purchase of a
building, were up $295,000.
Factors contributing to the change in General Fund balance reserves are as
follows:
• General Fund revenues were up over 6.7% or $1.1 million from
FY09-10. Nearly all revenue categories were up this fiscal year with
the exception of Intergovernmental revenues, Fines and Forfeitures,
and Use of Money and Property. The largest increase was in the
Taxes category, primarily due to an increase in Property taxes in lieu of
Sales Taxes, Transient Occupancy Taxes, and Franchise Taxes.
• For the past few years the City has been struggling with three
landscape and lighting assessment districts which are in financial
straits. The assessments for these districts have not been adjusted to
keep up with the cost of maintaining these districts. The general fund
has continued to subsidize these districts while the City Council
considers various options to make these districts self sustaining.
• The City used General Fund reserves for the purchase of an office
building to house the new City Hall facility and a branch of the Los
Angeles County Library. In addition, the City spent $346,000 for
architectural and design services for the facility.
• Conservative expenditure budgets over the years have contributed to
the City's general fund healthy fund balance reserve. This includes a
contract city business model which aides the City in containing costs.
The Capital Projects Fund ended the year with a negative fund balance of
$37,061 as opposed to a negative of $521,242 in the previous 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
Original revenue budget projections were increased during the year by .8% to
reflect the stabilization of the local economy, and an increase in tax revenues
10
due to an increase in prices for gasoline. The actual revenue came in slightly
higher than anticipated by an additional $79,000 (.2%).
The General Fund taxes category include property taxes, sales tax, franchise
tax and property transfer tax. These revenues came in $42,623 more than
anticipated. The variance between the amount budgeted and the amount
received is primarily due to the under estimation of anticipated property tax
revenue however several other tax revenues came in higher as well.
The revenue anticipated for Licenses, Permits and Fees was decreased
during the year. Unfortunately the actual revenue received was even less
than the amended budget projection.
Transfers in were less than anticipated due to the related expenditures being
less than budgeted.
General Fund appropriations were increased during the year by $476,459 or
1.5% from the original budget to the amended budget. The final expenditures
actually came in $2.6 million less than the amended budget, since
reconstruction of the new City Hall was delayed to the 11/12 fiscal year. At
the end of the year there were open encumbrances of $549,000 which were
carried over into FY11-12. Additional explanations for the difference between
budget and actual expenditures include salary savings from staff vacancies,
savings from low interest rates on the City's variable rate debt, various
studies and projects which were either postponed or cancelled and overall
cost saving measures implemented by all departments.
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, 2011 amounts to $393,974,202 (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 increase in the City's
investment in capital assets was approximately 1.0% from the previous year.
Table 3
Capital Assets
(net of depreciation)
11
2011
2010
Land
$6,587,349
$6,587,349
Right of Way
265,614,104
265,614,104
Buildings and Improvements
21,473,338
13,411,866
Furniture and Fixtures
6,604
11,854
Vehicles & Equipment
952,368
961,586
Infrastructure
97,367,982
101,705,484
Construction in Progress
1,972,457
1,917,586
$393,974,202
$390,209,829
11
The City's capital assets increased in value $3,764,373 during FY10-11.
Significant additions to capital assets include:
The only significant addition to fixed assets in 2010-11 was the purchase of
an office building that will be used to house a branch of the Los Angeles
County Library and a new City Hall. The building is undergoing a complete
reconstruction in 2011/12, with an expected move -in date to City Hall at the
end of 2011. The library portion of the building will be completed towards the
end of fiscal year 2011/12.
Construction in progress at the end of the year included thirteen projects in
various stages of design or construction. There were six park improvement
projects in progress totaling $381,316. There was a city hall computer room
sprinkler improvement project and six traffic related projects in progress at the
end of the year as well. The other seven projects equaling $1,591,141
include the sprinkler system, a traffic management system, two street
projects, two median projects, and a drainage project.
Additional information on the City's capital assets can be found in note 5.
Long-term debt — At the end of the current fiscal year, the City of Diamond
Bar's total long-term debt equaled $12,788,162. Of this amount $174,971 is
the City's Net OPEB obligation. At this time the City is using a pay as you go
methodology for funding its OPEB. The City's long-term debt includes the net
OPEB obligation which is the difference between the amounts paid on the pay
as you go basis versus the actuarially computed Annual Required
Contribution. The following table shows the breakdown of the long-term debt
outstanding:
Outstanding Long Term Debt at Year-end
Variable Rate Lease Revenue Bonds
(backed by the Public Financing
Authority) $ 12,190,000
Unamortized Bond Discount -100,869
Compensated Absences 524,060
Net OPEB Obligation 174,971
$12,788,162
See footnote 6 for additional information on the City's long-term liabilities as
of June 30, 2011.
12
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 2011-2012 budget is a fiscally conservative budget. The stagnant
economy and worsening condition of the State's budget continue to be a
major concern. As a result anticipated revenues in the General Fund reflect
only modest growth. The ongoing operations budget has been maintained at
the status quo as much as possible. To take advantage of the poor real
estate market the City chose to use General Fund Reserves to purchase a
building to house City Hall. Incorporated in the FY11-12 budget are
expenditures related to the design, reconstruction, and relocation to the new
facility. This budget presents an operating plan that permits the City to live
within a reasonable estimate of revenues while continuing to provide
community programs and services to the residents of the City of Diamond
Bar.
As mentioned in the previous paragraph, the City purchased a building in
September 2010. With more than four times the square footage of the current
City Hall location the building offers a unique setting for the provision of
government services. The City finalized an agreement in 2010-2011 with the
County of Los Angeles to partner with the City by relocating and expanding
the Diamond Bar Library into the facility. This move would solve a variety of
issues for the library including the provision of additional library services and
parking spaces.
To combat some of the economic uncertainties the City recently completed a
fee study. This study evaluated the City's current fee structure to verify that
costs associated with fees are recovered. Although not total cost recovery,
the new fee structure has been established to recover a higher percentage of
the costs. It has a fee escalator built into it to keep the fees somewhat even
with the escalation of costs. These new fees were implemented in November
2010, with related increases in building permits approved by City Council in
November 2011.
When the City's waste hauler contracts were set to expire, the City looked at
other jurisdictions in the area and found that it was not unreasonable to
negotiate a franchise fee into the new contracts. These fees became
effective during the 2010-2011 fiscal year in August, 2010, and will provide
the City with an additional revenue stream to fund operations.
13
The City has made a conscientious decision to use some general fund
balance reserves for economic development purposes. As a result, the FY12
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, 21810 Copley
Drive, Diamond Bar, California 91765.
14
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
JUNE 30, 2011
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Prepaid costs
Due from other governments
Deferred charges
Restricted assets:
Cash with fiscal agent
Due from employees
Capital assets not being depreciated
Capital assets, net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Unearned revenue
Deposits payable
Due to other governments
Retentions payable
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Community development projects
Public safety
Public works
Capital projects
Debt service
Unrestricted
Total Net Assets
See Notes to Financial Statements 15
Governmental
Activities
30,567,096
451,672
284,154
30,278
42,824
1,786,065
463,282
348,694
6,184
274,173,910
119,800,292
427,954,451
1,621,779
253,756
13,042
1,291,253
916,106
284,154
2,602
718,488
12,069,674
17,170,854
381,985,940
1,644,861
453,730
3,636,487
146,567
333,694
22,582,318
$ 410,783,597
CITY OF DIAMOND BAR
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2011
Functions/Programs
Primary Government:
Governmental Activities:
General government
Public safety
Community development
Parks, recreation and culture
Highways and Streets
Interest on long-term debt
Total Governmental Activities
Total Primary Government
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Net
(Expenses)
Revenues and
Changes in Net
A--- -
Governmental
A-44-'.44-
$ 6,370,986
$ 118,016
$ 186,313 $
- $ (6,066,657)
5,591,049
996,409
131,977
- (4,462,663)
1,969,540
517,515
529,467
- (922,558)
5,153,264
1,829,409
25,811
- (3,298,044)
10,619,860
2,400,272
2,811,810
40,779 (5,366,999)
72,592
-
-
- (72,592)
29,777,291
5,861,621
3,685,378
40,779 (20,189,513)
$29,777,291
$ 5,861,621
$ 3,685,378 $
40,779 (20,189,513)
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Total General Revenues
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
See Notes to Financial Statements 16
4,187, 896
642,509
3,355,127
1,259,471
172,687
4,766,225
474,598
91,975
14,950,488
(5,239,025)
416,022,622
$ 410,783,597
GOVERNMENTALFUNDS
GENERALFUND
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 Funds are 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 Funds
have been classified as major funds in the accompanying financial statements:
The Traffic Improvement Fund has been classified as a major fund and is used to account for various
State transportation grants received by the City.
The Proposition 1 B Bond Fund has been classified as a major fund and is used track activity for the
Proposition 1 B revenues.
17
CITY OF DIAMOND BAR
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 986,748 $
Special Revenue Funds
$ - $
361,258
Accrued liabilities
Traffic
-
Other
11,690
Deferred revenues
Improvement
Proposition
Governmental
55,264
General
Fund
1B Bond Fund
Funds
Assets:
Deposits payable
916,106
-
-
Pooled cash and investments
$ 21,860,585
$ 989,851
$ 182,498
$ 5,652,538
Receivables:
Due to other funds
-
-
-
Accounts
340,745
-
-
110,927
Notes and loans
-
-
-
284,154
Accrued interest
30,278
-
-
-
Prepaid costs
41,451
-
-
-
Due from other governments
1,428,982
-
-
357,083
Due from other funds
49,692
-
-
-
Due from employees
6,184
-
-
-
Restricted assets:
-
-
-
1,644,861
Cash and investments with fiscal agents
15,000
-
-
333,694
Total Assets
$ 23,772,917
$ 989,851
$ 182,498
$ 6,738,396
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ 986,748 $
4,385
$ - $
361,258
Accrued liabilities
242,066
-
-
11,690
Deferred revenues
359,582
-
-
55,264
Unearned revenues
-
751,616
493,749
45,888
Deposits payable
916,106
-
-
-
Due to other governments
-
-
-
284,154
Due to other funds
-
-
-
49,692
Retentions payable
-
-
-
2,602
Total Liabilities
2,504,502
756,001
493,749
810,548
Fund Balances:
Nonspendable:
Prepaid costs
41,451
-
-
-
Restricted for:
Community development projects
-
-
-
1,644,861
Public safety
-
-
-
453,730
Highways and streets
-
233,850
-
3,402,637
Capital Projects
-
-
-
146,567
Debt service
-
-
-
333,694
Committed to:
Emergency contingencies
4,500,000
-
-
-
Unassigned
16,726,964
-
(311,251)
(53,641)
Total Fund Balances
21,268,415
233,850
(311,251)
5,927,848
Total Liabilities and Fund Balances
$ 23,772,917 $
989,851
$ 182,498 $
6,738,396
See Notes to Financial Statements 18
CITY OF DIAMOND BAR
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Prepaid costs
Due from other governments
Due from other funds
Due from employees
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Unearned revenues
Deposits payable
Due to other governments
Due to other funds
Retentions payable
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Committed to:
Emergency contingencies
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
See Notes to Financial Statements 19
Total
Governmental
Funds
$ 28,685,472
451,672
284,154
30,278
41,451
1,786,065
49,692
6,184
348,694
$ 31,683,662
$ 1,352,391
253,756
414,846
1,291,253
916,106
284,154
49,692
2,602
4,564,800
41,451
1,644,861
453,730
3,636,487
146,567
333,694
4,500,000
16,362,072
27,118,862
$ 31,683,662
THIS PAGE INTENTIONALLY LEFT BLANK
20
CITY OF DIAMOND BAR
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2011
Fund balances of 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
Bond issuance cost is an expenditure in the governmental funds, but it is
a deferred charge in the statement of net assets
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Bonds Payable
Bonds discount
Compensated absences
Other post employment benefit obligation
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, 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 Notes to Financial Statements 21
$ 27,118,862
393,861,375
463,282
(12,190,000)
100,869
(524,060)
(174,971) (12,788,162)
(13,042)
414,846
1,726,436
$ 410,783,597
CITY OF DIAMOND BAR
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Community development
Parks, recreation, and culture
Highways and streets
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) 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
Special Revenue Funds
Traffic Other
Improvement Proposition Governmental
General Fund 1B Bond Fund Funds
$ 9,646,883 $ - $ - $ 556,562
818,913 - - -
4,782,552 - - 4,659,407
1,829,409 - - 1,560,958
123,374 5,263 1,630 369,110
567,575 - - -
113,578 - - -
17,882,284 5,263 1,630 7,146,037
4,977,021
5,561,457 -
- 19,050
1,417,630 -
- 542,495
3,644,786 -
- 67,408
2,315,568 21,032
- 2,665,856
9,887,685 -
- 1,592,910
27,804,147 21,032
290,000
- 37,461
5,215,180
(9,921,863) (15,769) 1,630 1,930,857
1,235,586 - - 1,693,942
(906,156) - (312,881) (2,316,519)
329,430 - (312,881) (622,577)
(9,592,433) (15,769) (311,251) 1,308,280
30,797,098 245,344 - 4,687,593
Restatements
63,750
4,275
- (68,025)
Fund Balances, Beginning of Year
30,860,848
249,619
- 4,619,568
Fund Balances, End of Year
$ 21,268,415 $
233,850
$ (311,251) $ 5,927,848
See Notes to Financial Statements 22
CITY OF DIAMOND BAR
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Expenditures:
Current:
General government
Total
Public safety
Governmental
Community development
Funds
Revenues:
3,712,194
Taxes
$ 10,203,445
Licenses and permits
818,913
Intergovernmental
9,441,959
Charges for services
3,390,367
Use of money and property
499,377
Fines and forfeitures
567,575
Miscellaneous
113,578
Total Revenues
25,035,214
Expenditures:
Current:
General government
4,977,021
Public safety
5,580,507
Community development
1,960,125
Parks, recreation, and culture
3,712,194
Highways and streets
5,002,456
Capital outlay
11,480,595
Debt service:
Principal retirement
290,000
Interest and fiscal charges
37,461
Total Expenditures
33,040,359
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(8,005,145)
Other Financing Sources (Uses):
Transfers in
2,929,528
Transfers out
(3,535,556)
Total Other Financing Sources
(Uses)
(606,028)
Net Change in Fund Balances
(8,611,173)
Fund Balances, Beginning of Year
35,730,035
Restatements
Fund Balances, Beginning of Year
Fund Balances, End of Year
See Notes to Financial Statements 23
35.730.035
$ 27,118,862
CITY OF DIAMOND BAR
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2011
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period:
Capital expenditures $10,526,047
Depreciation expense (6,856,434)
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets
Principal payment 290,000
Amortization of bond discount (4,586)
Other post employment benefit obligation (53,261)
Compensated absences (16,730)
Debt issuance costs are expenditures in governmental funds, but these costs
are capitalized on the statement of net assets
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities
Change in net assets of governmental activities
See Notes to Financial Statements 24
$ (8,611,173)
3,669,613
215,423
(21,059)
(9,486)
(504,562)
22,219
$ (5,239,025)
CITY OF DIAMOND BAR
BUDGETARY COMPARISON STATEMENT
GENERALFUND
YEAR ENDED JUNE 30, 2011
Community development
1,364,270
1,423,946
1,417,630
Variance with
Parks, recreation, and culture
3,763,495
3,759,271
3,644,786
Final Budget
Public works
Budget Amounts
Actual
Positive
127,632
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1, as restated
$30,860,848
$30,860,848
$30,860,848
$ -
Resources (Inflows):
Total Charges to Appropriations
30,839,350
31,315,809
28,710,303
Taxes
9,097,000
9,604,260
9,646,883
42,623
Licenses and permits
956,030
933,030
818,913
(114,117)
Intergovernmental
4,585,000
4,629,770
4,782,552
152,782
Charges for services
1,769,098
1,729,548
1,829,409
99,861
Use of money and property
300,000
286,110
123,374
(162,736)
Fines and forfeitures
523,500
523,500
567,575
44,075
Miscellaneous
17,000
17,000
113,578
96,578
Transfers in
1,416,638
1,315,537
1,235,586
(79,951)
Amounts Available for Appropriation
49,525,114
49,899,603
49,978,718
79,115
Charges to Appropriation (Outflow):
General government
City Council
178,000
179,100
156,698
22,402
City Attorney
185,000
265,000
237,020
27,980
City Manager/Clerk
1,003,990
987,190
980,456
6,734
Finance
438,520
447,206
428,833
18,373
Human resources
206,280
206,280
179,220
27,060
Information systems
739,285
745,985
790,283
(44,298)
General government
1,320,400
1,210,059
1,246,447
(36,388)
Public information
515,470
515,470
520,985
(5,515)
Civic Center
2,136,615
2,529,255
437,079
2,092,176
Subtotal general government
6,723,560
7,085,545
4,977,021
2,108,524
Public safety
Law Enforcement
5,559,050
5,559,050
5,363,770
195,280
Fire Protection
11,500
11,500
7,359
4,141
Animal Control
131,780
131,780
127,108
4,672
Emergency preparedness
76,140
76,140
63,220
12,920
Subtotal public safety
5,778,470
5,778,470
5,561,457
217,013
Community development
1,364,270
1,423,946
1,417,630
6,316
Parks, recreation, and culture
3,763,495
3,759,271
3,644,786
114,485
Public works
2,444,700
2,443,200
2,315,568
127,632
Capital outlay
9,917,500
9,917,500
9,887,685
29,815
Transfers out
847,355
907,877
906,156
1,721
Total Charges to Appropriations
30,839,350
31,315,809
28,710,303
2,605,506
Budgetary Fund Balance, June 30
$18,685,764
$18,583,794
$21,268,415
$ 2,684,621
See Notes to Financial Statements 25
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
TRAFFIC IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2011
See Notes to Financial Statements 26
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1, as restated
$ 249,619
$ 249,619
$ 249,619
$ -
Resources (Inflows):
Use of money and property
-
-
5,263
5,263
Amounts Available for Appropriation
249,619
249,619
254,882
5,263
Charges to Appropriation (Outflow):
Highways and streets
-
-
21,032
(21,032)
Transfers out
65,000
65,000
-
65,000
Total Charges to Appropriations
65,000
65,000
21,032
43,968
Budgetary Fund Balance, June 30
$ 184,619
$ 184,619
$ 233,850
$ 49,231
See Notes to Financial Statements 26
CITY OF DIAMOND BAR
BUDGETARY COMPARISON STATEMENT
PROPOSITION 1B BOND FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
See Notes to Financial Statements 27
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
205,239
205,239
-
(205,239)
1,000
1,000
1,630
630
206,239
206,239
1,630
(204,609)
226,686
226,686
312,881
(86,195)
226,686
226,686
312,881
(86,195)
$ (20,447)
$ (20,447)
$ (311,251)
$ (290,804)
See Notes to Financial Statements 27
CITY OF DIAMOND BAR
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2011
Assets:
Current:
Cash and investments
Prepaid costs
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Total Current Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
See Notes to Financial Statements 28
Governmental
Activities -
Internal
Service Funds
$ 1,881,624
1,373
1,882,997
112,827
112,827
$ 1,995,824
$ 269,388
269,388
269,388
112,827
1,613,609
1,726,436
$ 1,995,824
CITY OF DIAMOND BAR
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Income (Loss) Before Transfers (583,809)
Transfers in 606,028
Changes in Net Assets 22,219
Net Assets:
Beginning of Year 1,704,217
End of Fiscal Year
See Notes to Financial Statements 29
$ 1,726,436
Governmental
Activities -
Internal
Service Funds
Operating Expenses:
Administration and general
$ 4,458
Insurance premiums
552,402
Maintenance and operations
18,201
Depreciation expense
16,362
Total Operating Expenses
591,423
Operating Income (Loss)
(591,423)
Nonoperating Revenues (Expenses):
Interest revenue
7,614
Total Nonoperating
Revenues (Expenses)
7,614
Income (Loss) Before Transfers (583,809)
Transfers in 606,028
Changes in Net Assets 22,219
Net Assets:
Beginning of Year 1,704,217
End of Fiscal Year
See Notes to Financial Statements 29
$ 1,726,436
CITY OF DIAMOND BAR
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Net Cash Provided (Used) by Operating Activities (594,818)
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in 606,028
Net Cash Provided (Used) by
Governmental
Non -Capital Financing Activities
Activities -
Cash Flows from Capital
Internal
and Related Financing Activities:
Service Funds
Cash Flows from Operating Activities:
(111,122)
Cash received from customers and users
$ (553,775)
Cash paid to suppliers for goods and services
(36,585)
Cash paid to employees for services
(4,458)
Net Cash Provided (Used) by Operating Activities (594,818)
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in 606,028
Net Cash Provided (Used) by
Non -Capital Financing Activities
606,028
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
(111,122)
Net Cash Provided (Used) by
Capital and Related Financing Activities
(111,122)
Cash Flows from Investing Activities:
Interest received
7,614
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
See Notes to Financial Statements 30
7,614
(92,298)
1,973,922
$ 1,881,624
$ (591,423.00)
16,362
(1,373)
(18,384)
(3,395)
$ (594,818)
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
Note 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, 2011.
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.
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.
31
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
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
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 funds principal ongoing operations.
The principal operating revenues of the City's internal service funds are charges to
departments 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 with the exception of gas tax which is
210 days. Expenditures generally are recorded when a liability is incurred, except for
principal and interest on long-term liabilities, claims and judgments, and compensated
absences which are recognized as expenditures only when payment is due.
32
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Reporting Entity and Significant Accounting Policies (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 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 to the
extent normally collected within the availability period. All other revenue items are
considered to be measurable and available only when cash is received by the City.
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 Traffic Improvement Fund is used to account for various State transportation grants
received by the City.
The Proposition 1 B Bond Fund is used to account for the costs incurred with Proposition
1 B proceeds.
The City's fund structure also includes the following fund types
Governmental Funds
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.
Proprietary 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.
33
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
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.
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 $5,000 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, 2011, 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, 2011.
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 10 - 20 years
Furniture and fixtures 3 - 5 years
Vehicles and equipment 5 years
Infrastructure 10 - 50 years
34
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
h. Compensated Absences
Vacation and sick leave time begin to accumulate as of the first day of employment to a
maximum of 320 hours and 280 hours, respectively. Employees who accumulate sick
leave in excess of 200 hours are paid for the excess annually at one half the employees
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 retires, resigns, or terminates in good standing with a minimum of
five years of service, the employee is entitled to receive 100% of unused sick leave at
one half the employees current wage rate.
L 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.
j. 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
35
January 1
July 1
November 1 - 1st installment
February 1 - 2nd installment
December 10 - 1st installment
April 10 - 2nd installment
December 11 - 1st installment
April 11 - 2nd installment
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 1: Reporting Entity and Significant Accounting Policies (Continued)
k. Use of Estimates
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.
Fund Equity
In the fund financial statements, government funds report the following fund balance
classification:
• Nonspendable include amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained
intact.
• Restricted include amounts that are constrained on the use of resources by
either (a) external creditors, grantors, contributors, or laws of regulations of other
governments or (b) by law through constitutional provisions or enabling
legislation.
• Committed include amounts that can only be used for specific purposes pursuant
to constraints imposed by formal action of the government's highest authority,
City Council. The formal action that is required to be taken to establish, modify,
or rescind a fund balance commitment is resolution or ordinance.
• Assigned include amounts that are constrained by the government's intent to be
used for specific purposes, but are neither restricted nor committed. The Director
of Finance is authorized to assign amounts to a specific purpose, which was
established by the governing body in resolution.
• Unassigned include the residual amounts that have not been restricted,
committed, or assigned to specific purposes.
An individual governmental fund could include nonspendable resources and amounts that
are restricted or unrestricted (committed, assigned, or unassigned) or any combination of
those classifications. Restricted amounts are to be considered spent when an
expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available and committed, assigned, then unassigned amounts are considered
to have been spent when an expenditure is incurred for purposes for which amounts in
any of those unrestricted fund balance classifications can be used.
36
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 2: Stewardship, Compliance and Accountability
a. Budgetary Data
General Budget Policies
The City adopts an annual budget prepared on the modified accrual basis of
accounting for its governmental funds and on the accrual basis of accounting for its
proprietary funds. The City manager or his designee is authorized to transfer
budgeted amounts between the accounts of any department or funds that are
approved by City Council. Prior year appropriations lapse unless they are approved
for carryover into the following fiscal year. Expenditures may not legally exceed
appropriations at the department level. Transportation Grant Fund is not presented in
the budgetary comparison schedule.
Budget Basis of Accounting
Budgets for governmental funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
b. At June 30, 2011, the following funds had deficit fund balances:
Major Fund:
Proposition 1 B Bond Fund 311,251
Other Governmental Fund:
Capital Improvement Fund 37,061
EECBG Grant Fund 16,580
c. Excess of expenditures over appropriations are as follows:
Expenditures for the year ended June 30, 2011, exceeded the appropriations of the
General Fund and major special revenue funds as follows:
Traffic Improvement Fund:
Highways and streets
37
Actual Variance
$ 790,283
1,246,447
520,985
21,032
$ (44,298)
(36,388)
(5,515)
(21,032)
Budget
General Fund:
General Government
Information systems
$ 745,985
General government
1,210,059
Public information
515,470
Traffic Improvement Fund:
Highways and streets
37
Actual Variance
$ 790,283
1,246,447
520,985
21,032
$ (44,298)
(36,388)
(5,515)
(21,032)
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: Cash and Investments
Cash and Investments
Cash and investments at June 30, 2011, consisted of the following:
Statement of Net Assets:
Cash and investments $ 30,567,096
Cash and investments with fiscal agents 348,694
$ 30,915,790
Cash and investments held by the City at June 30, 2011, consisted of the following:
Imprest cash on hand
$ 1,500
Demand deposits
2,460,698
Escrow deposits
15,000
Investments:
United States Government Sponsored Enterprise Securities
10,476,958
Local Agency Investment Fund
17,627,939
Held by Bond Trustee:
Money Market Mutual Funds
333,695
$ 30,915,790
Investments Authorized by the California Government Code and the Citv's Investment
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.
38
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: Cash and Investments (Continued)
Maximum
Maximum
Authorized Investment Type
Maturity
United States Treasury Obligations
5 years
United States Government Sponsored Enterprise
None
Securities
5 years
Banker's Acceptance
180 days
Time Certificates of Deposits
5 years
Commercial Paper
270 days
Negotiable Certificates of Deposit
5 years
Money Market Mutual Funds
5 years
Repurchase Agreements
1 year
Medium -Term Corporate Notes (1)
5 year
Local Agency Investment Fund (LAIF)
N/A
Maximum
Maximum
Percentage of
Investment in
Portfolio
One Issuer
None
None
40%
None
40%
30%
None
None
25%
10%
30%
None
15%
None
None
None
30%
None
None
$ 40,000,000
*-Excluding amounts held in bond trustees that are not subject to California Government Code Restrictions
(1) Notes must be rated "A" or better
N/A - Not Applicable
Investments Authorized by Debt Aareements
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.
39
Maximum Maximum
Percentage Investment in
of Portfolio One Issuer
None
10%
None
None
None
None
None
Equal to six
months of
principal and
interest in the
bonds
None
None
None
None
None
None
None
None
Maximum
Authorized Investment Type
Maturity
United States Treasury Obligations
None
United States Government Sponsored
Enterprise Securities
None
Banker's Acceptance
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
39
Maximum Maximum
Percentage Investment in
of Portfolio One Issuer
None
10%
None
None
None
None
None
Equal to six
months of
principal and
interest in the
bonds
None
None
None
None
None
None
None
None
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
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.
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
United States Government Sponsored
Enterprise Securities
Local Agency Investment Fund (LAIF)
Held by Bond Trustees:
Money Market Mutual Funds
Disclosures Relating to Credit Risk
Remaining Maturity (in Months)
12 Months or 25-60
Less months Total
$ - $ 10,476,958 $ 10,476,958
17,627,939 - 17,627,939
333,695 - 333,695
$ 17,961,634 $ 10,476,958 $ 28,438,592
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:
40
Minimum
Total as of June
Legal
Investment Type
30,2011
Rating
AAA Unrated
United States Government Sponsored
Enterprise Securities
$ 10,476,958
N/A
$ 10,476,958 $ -
Local Agency Investment Fund (LAIF)
17,627,939
N/A
- 17,627,939
Held by Bond Trustees:
Money Market Mutual Funds
333,695
A
333,695 -
Total
$ 28,438,592
$ 10,810,653 $ 17,627,939
40
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 3: 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, 2011, the City deposits
(bank balances) were insured by the Federal Depository Insurance Corporation up to
$250,000 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.
Note 4: Interfund Receivables, Payables and Transfers
The composition of interfund balances as of June 30, 2011, is as follows:
Due To/From Other Funds
Receivable Fund
Payable Fund
Amount
General Fund Other Governmental Funds 49,692
49,692
The amounts loaned from the General Fund to the Capital Improvement Capital Projects
Fund and Other Governmental Funds are to provide short-term loans to fund temporary cash
shortfalls.
41
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 4: Interfund Receivables, Payables and Transfers (Continued)
Interfund Transfers
Transfers In
General Fund
Other Governmental Funds
Internal Service Funds
Transfer Out
Amount
Other Governmental Funds
$ 1,235,586
General Fund
300,128
Proposition 1B Bond Fund
312,881
Other Governmental Funds
1,080,933
General Fund
606,028
$ 3,535,556
Transfers to the General Fund from the Other Governmental Funds were made to reimburse
the General Fund for various capital projects and administrative expenditures.
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.
42
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 5: Capital Assets
A summary of changes in the Governmental Activities capital assets at June 30, 2011, 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:
Buildings and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total Capital Assets
being Depreciated
Less accumulated depreciation for:
Buildings and improvements
Furniture and fixtures
Vehicles and equipment
Infrastructure
Total Accumulated
Depreciation
Total Capital Assets
Being Depreciated, Net
Governmental Activities
Capital Assets, Net
Balance at
10,277,184
Balance at
July 1, 2010
Transfers Additions Deletions
June 30, 2011
$ 6,587,349
$ $ - $
$ 6,587,349
265,614,104
- -
265,614,104
1,917,586
305,114 359,985 -
1,972,457
274,119,039
(305,114) 359,985 -
274,173,910
24,807,197
84,372
2,249,918
187,294,001
305,114 9,887,685
172,536
216,963
34,999,996
84,372
- 2,422,454
187,510,964
214,435,488 305,114
10,277,184
225,017,786
11,395,331 -
2,131,327
13,526,658
72,518
5,250
77,768
1,288,332
181,754
1,470,086
85,588,517
4,554,465
90,142,982
98,344,698
6,872,796
105,217,494
116,090,790 305,114
3,404,388
119,800,292
$ 390,209,829 $ -
$ 3,764,373 $
- $ 393,974,202
Depreciation expense was charged to functions in the Statement of Activities as follows:
General government $ 988,564
Public safety 10,542
Highways and streets 4,575,827
Community development 1,281,501
Internal Service Funds depreciation charges to program 16,362
$ 6,872,796
43
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 6: Long -Term Liabilities
Long-term liability activity for the year ended June 30, 2011, was as follows:
Bonds Payable
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, 2011, $12,190,000 of the bonds is 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.
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.
44
Balance
Balance at June
Due Within
July 1, 2010
Additions
Deletions
30, 2011
One Year
Bonds payable
Revenue Bonds
$ 12,480,000
$ -
$ 290,000
$ 12,190,000
$ 305,000
Compensated absences
507,330
417,018
400,288
524,060
413,488
Net OPEB obligation (Note 9)
121,710
59,033
5,772
174,971
-
Total
$ 13,109,040
$ 476,051
$ 696,060
12,889,031
$ 718,488
Net unamortized bond discount
(100,869)
Net Long -Term Debt
$ 12,788,162
Bonds Payable
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, 2011, $12,190,000 of the bonds is 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.
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.
44
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 6
Long -Term Liabilities (Continued)
Payments and Associated Debt
Using a variable rate of 1.30% as of June 30, 2011, 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.
Year Ending June 30
2012
2013
2014
2015
2016
2016-2021
2021-2026
2026-2031
2031-2036
Totals
Compensated Absences
Variable Rate Debt
Principal
Interest
Total
$ 305,000
$ 162,506
$ 467,506
320,000
158,288
478,288
335,000
153,866
488,866
350,000
149,243
499,243
365,000
144,416
509,416
2,105,000
641,284
2,746,284
2,655,000
481,309
3,136,309
3,345,000
279,686
3,624,686
2,410,000
49,815
2,459,815
$ 12,190,000 $ 2,220,413 $ 14,410,413
The City's policies relating to compensated absences are described in Note 1. This liability,
amounting to $524,060 at June 30, 2011, is expected to be paid in future years from future
resources, typically liquidated from the General Fund.
Note 7: Liability, Property and Workers' Compensation Protection
The City of Diamond Bar is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 121 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §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 lines of coverage. The California JPIA 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 nine -member
Executive Committee.
45
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 7: Liability, Property and Workers' Compensation Protection (Continued)
a. Self -Insurance Programs of the Authority
General Liabilit
In the liability program claims are pooled separately between police and non -police
exposures. (1) The payroll of each member is evaluated relative to the payroll of other
members. A variable credibility factor is determined for each member, which establishes
the weight applied to payroll and the weight applied to losses within the formula.
(2) The first layer of losses includes incurred costs up to $30,000 for each occurrence
and is evaluated as a percentage of the pool's total incurred costs within the first layer.
(3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the
second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment
point of $5 million are distributed based on the outcome of cost allocation within the first
and second loss layers. (5) Costs of covered claims from $5 million to $10 million are
paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible.
Costs of covered claims from $10 million to $15 million are paid under two reinsurance
contracts subject to a combined $3 million annual aggregate deductible. On a cumulative
basis for all 2010-11 reinsurance contracts the annual aggregate deductible is
$5.5 million. (6) Costs of covered claims from $15 million up to $50 million are covered
through excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million
per occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess
insurance with a pooled sub -limit of $35 million per occurrence. This $35 million
subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR,
(b) $10 million in reinsurance and (c) $20 million in excess insurance. The excess
insurance layer has a $20 million annual aggregate.
Workers' Compensation
In the workers' compensation program claims are pooled separately between public
safety (police and fire) and non-public safety exposures. (1) The payroll of each member
is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the
weight applied to losses within the formula. (2) The first layer of losses includes incurred
costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's
total incurred costs within the first layer. (3) The second layer of losses includes incurred
costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of
the pool's total incurred costs within the second layer. (4) Incurred costs in excess of
$100,000 up to the reinsurance attachment point of $2 million are distributed based on
the outcome of cost allocation within the first and second loss layers. (5) Costs of
covered claims from $2 million up to statutory limits are paid under a reinsurance policy.
Protection is provided per statutory liability under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage from
$2 million to $4 million is purchased as part of a reinsurance policy, and Employer's
Liability losses from $4 million to $10 million are pooled among members.
46
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 7: Liability, Property and Workers' Compensation Protection (Continued)
b. Purchased Insurance
Environmental Insurance
The City of Diamond Bar participates in the pollution legal liability insurance program
(formerly called environmental insurance) which is available through the Authority. The
policy covers sudden and gradual pollution of scheduled property, streets, and storm
drains owned by the City of Diamond Bar. Coverage is on a claims -made basis. There is
a $50,000 deductible. The Authority has a limit of $50 million for the 3 -year period from
July 1, 2008 through July 1, 2011. Each member of the Authority has a $10 million
sub -limit during the 3 -year term of the policy.
Property Insurance
The City of Diamond Bar participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. City
of Diamond Bar property is currently insured according to a schedule of covered property
submitted by the City of Diamond Bar to the Authority. City of Diamond Bar property
currently has all-risk property insurance protection in the amount of $19,587,922. There
is a $5,000 deductible per occurrence except for non -emergency vehicle insurance which
has a $1,000 deductible. Premiums for the coverage are paid annually and are not
subject to retrospective adjustments.
Crime Insurance
The City of Diamond Bar purchases crime insurance coverage in the amount of
$1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the
Authority. Premiums are paid annually and are not subject to retrospective adjustments.
c. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were also no
significant reductions in pooled or insured liability coverage in 2010-11.
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.
Note 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.
47
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 8: Pension Plan (Continued)
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
usually using available resources in the general fund. The City is required to contribute the
actuarially determined remaining amounts necessary to fund the benefits for its members.
The current rate is 10.424% of covered payroll. The City's contributions to CalPERS for the
years ending June 30, 2011, 2010 and 2009, were $410,342, $396,087 and $392,608,
respectively and were equal to the required contribution for each year.
Plan Description
In connection with the retirement benefits for employees described in Note 9, the City
provides post-retirement health care benefits to retirees through the California Public
Employees' Retirement System Health Benefits program (the PERS Health program). The
program is an agent multiple -employer defined benefit health care plan that provides
healthcare insurance for eligible retirees, through the City's group plans, which cover both
active and retired employees. Employees become eligible to retire and receive City -paid
healthcare benefits upon attainment of age 50 and 5 years of covered PERS service, or by
qualifying disability retirement status. Retired employees over the age of 65 must join one of
the supplemental (Medicare -coordinated) options under the PERS Health Program. Benefits
are paid for the lifetime of the retiree. Benefit provisions are established by city ordinance
which references state statutes (the Public Employee Medical and Hospital Care Act). The
PERS Health Program does not issue a publicly available financial report.
Note 9: Postemployment Benefits Other than Pensions
Annual OPEB Cost and Net OPEB Obliaation
The City's annual OPEB cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and to amortize any unfunded
liabilities of the plan over a period not to exceed thirty years.
Funding Policy
The City sets its monthly contribution rates for health insurance on behalf of all eligible
retirees according to the PERS Health Program's statutory minimum ($101/month for
calendar 2010 and $101/month for calendar 2011, increased in all future years according to
the rate of medical inflation). The City pays a 0.45% of premium administrative charge on
behalf of all retirees. The City is currently funding this OPEB obligation on a pay-as-you-go
basis usually using available resources in the general fund. For the year ended
June 30, 2011, the City paid $5,772 in health care costs for its retirees and their covered
dependents.
48
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 9: Postemployment Benefits Other than Pensions
The following table shows the components of the City's annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City's net OPEB obligation to the
PERS Health Program (in thousands):
Annual required contribution
$ 62,171
Interest on net OPEB obligation
2,434
Adjustment to annual required contribution
(5,572)
Annual OPEB cost (expense)
59,033
Contributions made
5,772
Increase in net OPEB obligation
53,261
Net OPEB obligation - beginning of year
121,710
Net OPEB obligation - end of year
$ 174,971
Three -Year Trend Information
For fiscal year 2011, the City's annual OPEB cost (expense) $59,033 was equal to the
ARC. Since this fiscal year is the second year, information on the annual OPEB costs, the
percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation is
only available for two fiscal years, as presented below:
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
The schedule of funding progress below presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation.
Actuarial
Actuarial
Type of Valuation
Percentage of
Valuation Date
Fiscal Year
Annual OPEB
Actual
Annual OPEB Costs
Net OPEB
Ended
Costs
Contributions
Contributed
Obligation
6/30/10
$ 62,517
$ 5,594
8.95%
121,710
6/30/11
59,033
5,772
9.78%
174,971
Funded Status and Funding Progress
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the City are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
The schedule of funding progress below presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation.
Actuarial
Actuarial
Type of Valuation
Value of
Valuation Date
Assets
Actual 7/1/2008
$ -
Actuarial
Actuarial
Percent of
Accrued
Accrued Funded Covered
Covered Interest
Liability
Liability Ratio Payroll
Payroll Rate
$ 402,007
$ 402,007 0.0% $ 3,936,516
10.99% 5.00%
49
CITY OF DIAMOND BAR
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 9: Postemployment Benefits Other than Pensions (Continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and the plan members at that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the
long-term perspective of the calculations.
In the July 1, 2008, actuarial valuation, the projected unit credit method was used. The
actuarial assumptions included a discount rate of 5.0% per annum, a rate of return on assets
of 5.0% per annum and a healthcare cost trend rate of 8.0% initially, reduced by annual
decrements of 1.0% to an ultimate rate of 5.0% after three years. The City's unfunded
actuarial accrued liability will be amortized as a level dollar over an open period of 30 years.
Note 10: 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.
Note 11: Construction Commitments
The following material construction commitments existed at June 30, 2011:
Project Name
Park Improvements
Street Improvements
Traffic Control Improvements
Misc. Improvements
Note 12: Operating Leases
Expenditure as of
Remaining
June 30, 2011
Commitments
$ 114,165
$ 391,130
57,679
1,851,917
52,351
425,965
138,973
938,081
$ 363,168 $ 3,607,093
The City leases building and office facilities under non -cancelable operating leases. The total
costs for such leases were $274,829 for the year ended June 30, 2011. The future minimum
lease payments for the lease of building and office facilities are as follows:
Year Ending
June 30,
2012 $ 142,496
Total $ 142,496
50
CITY OF DIAMOND BAR
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 13: Fund Balance
Fund balance restatements:
Major governmental funds:
General Fund:
To move prior year expenditures which were paid by the General $ 63,750
Fund which should have been covered by Measure M funds.
Traffic Improvement Fund
To move prior year investment earnings recognized under the
Transportation Grant Fund to the Traffic Improvement Fund. (4,275)
Nonmajor governmental funds:
Measure M Fund:
To move prior year expenditures which were paid by the General
Fund which should have been covered by Measure M funds. (63,750)
Transportation Grant Fund:
To move prior year investment earnings recognized under the
Transportation Grant Fund to the Traffic Improvement Fund. 4,275
Total Fund Balance Restatements $ -
In addition to the adjustments to fund balance, the following restatements have been made to
net assets:
Government -wide Net Assets:
To adjust beginning balance of capital assets to reflect capital asset additions
in the internal service funds that were not recorded in the prior year. $ 5,010
Total Net Asset restatements $ 5,010
Note 14: Transactions with the State of California
a. Delay of State Gas Tax Payments
In March 2010, the State Legislature passed legislation delaying a variety of State
payments to local agencies in response to anticipated State cash flow problems in fiscal
year 2010-2011. AB5 8x contains provisions to delay a portion (approximately 60%) of
the payments of State Gas Tax monies for the first nine months of 2010-2011 (July 2010
through March 2011) to be paid no later than April 28, 2011.
51
CITY OF DIAMOND BAR
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2011
Note 15: Subsequent Event
Refinancing of the 2002 Series A Lease Revenue Bonds (Community/Senior Center
Pro'ect
The 2002 Series A Lease Revenue Bonds were originally issued on December 19, 2002 in
the aggregate principal amount of $13,755,000. Since the date of their initial issuance, the
Bonds have borne interest at a Weekly Rate and the regularly scheduled payments of
principal of and interest on the Bonds have been payable from the proceeds of draws upon
an irrevocable direct -pay letter of credit issued by Union Bank, N.A., formerly known as Union
Bank of California, N.A. On December 1, 2011, the interest rate on the Bonds was converted
from a Weekly Rate to a Fixed Rate. The fixed rates range from 3.00% to 5.00% throughout
the life of the bond.
52
THIS PAGE INTENTIONALLY LEFT BLANK
53
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Special Revenue Funds
State Gas Tax
Proposition A
Proposition C
Transportation
Fund
Transit Fund
Transit Fund
Grant Fund
Assets:
Pooled cash and investments
$ 377,859
$
291,405
$
2,015,942
$ -
Receivables:
Accounts
-
-
-
-
Notes and loans
-
-
-
-
Due from other governments
180,713
-
-
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$ 558,572
$
291,405
$
2,015,942
$ -
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$ -
$
40,056
$
44,438
$ -
Accrued liabilities
-
3,315
3,980
-
Deferred revenues
-
-
-
-
Unearned revenues
-
-
-
-
Due to other governments
-
-
-
-
Due to other funds
-
-
-
-
Retentions payable
-
-
-
-
Total Liabilities
-
43,371
48,418
-
Restricted for:
Community development projects
-
-
-
-
Public safety
-
-
-
-
Highways and streets
558,572
248,034
1,967,524
-
Capital Projects
-
-
-
-
Debt service
-
-
-
-
Unassigned
-
-
-
-
Total Fund Balances
558,572
248,034
1,967,524
-
Total Liabilities and Fund Balances
$ 558,572
$
291,405
$
2,015,942
$ -
54
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011 (Continued)
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Special Revenue Funds
Integrated
3,876 $ - $
14,494 $ -
Park and
Waste
Traffic
Air Quality
Facility
Management
Congestion
Improvement
Development
Fund
Relief Fund
Fund
Fund
- -
- -
Retentions payable
$ 687,518
$ 35,443
$ 161,061
$ 853,972
110,927 - - -
$ 798,445 $ 35,443 $
161,061 $ 853,972
Accounts payable $
3,876 $ - $
14,494 $ -
Accrued liabilities
3,680 -
- -
Deferred revenues
- -
- -
Unearned revenues
- -
- -
Due to other governments
- -
- -
Due to other funds
- -
- -
Retentions payable
- -
- -
Total Liabilities
7,556 -
14,494 -
Restricted for:
Community development projects
790,889 -
- 853,972
Public safety
- -
- -
Highways and streets
- 35,443
- -
Capital Projects
- -
146,567 -
Debt service
- -
- -
Unassigned
- -
- -
Total Fund Balances
790,889 35,443
146,567 853,972
Total Liabilities and Fund Balances $
798,445 $ 35,443 $
161,061 $ 853,972
55
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Special Revenue Funds
56
Asset Seizure
CDBG Fund
COPS Fund
Fund
CLEEP Fund
Assets:
Pooled cash and investments
$
-
$
133,349
$
263,939
$
46,987
Receivables:
Accounts
-
-
-
-
Notes and loans
284,154
-
-
-
Due from other governments
68,370
12,706
-
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$
352,524
$
146,055
$
263,939
$
46,987
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$
18,356
$
3,440
$
-
$
-
Accrued liabilities
715
-
-
-
Deferred revenues
-
-
-
-
Unearned revenues
-
-
-
-
Due to other governments
284,154
-
-
-
Due to other funds
49,299
-
-
-
Retentions payable
-
-
-
-
Total Liabilities
352,524
3,440
-
-
Restricted for:
Community development projects
-
-
-
-
Public safety
-
142,615
263,939
46,987
Highways and streets
-
-
-
-
Capital Projects
-
-
-
-
Debt service
-
-
-
-
Unassigned
-
-
-
-
Total Fund Balances
-
142,615
263,939
46,987
Total Liabilities and Fund Balances
$
352,524
$
146,055
$
263,939
$
46,987
56
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011 (Continued)
57
Special Revenue Funds
Edward Byrne
Justice
Landscape
Measure R
Assistance Grant
Maintenance
Local Return
EECBG Grant
(JAG) Fund
District Fund
Fund
Fund
Assets:
Pooled cash and investments
$
46,077
$ 119,086
$ 564,799
$
-
Receivables:
Accounts
-
-
-
-
Notes and loans
-
-
-
-
Due from other governments
-
11,924
-
-
Restricted assets:
Cash and investments with fiscal agents
-
-
-
-
Total Assets
$
46,077
$ 131,010
$ 564,799
$
-
Liabilities and Fund Balances:
Liabilities:
Accounts payable
$
-
$ 102,745
$ -
$
16,187
Accrued liabilities
-
-
-
-
Deferred revenues
-
-
-
-
Unearned revenues
45,888
-
-
-
Due to other governments
-
-
-
-
Due to other funds
-
-
-
393
Retentions payable
-
-
-
-
Total Liabilities
45,888
102,745
-
16,580
Restricted for:
Community development projects
-
-
-
-
Public safety
189
-
-
-
Highways and streets
-
28,265
564,799
-
Capital Projects
-
-
-
-
Debt service
-
-
-
-
Unassigned
-
-
-
(16,580)
Total Fund Balances
189
28,265
564,799
(16,580)
Total Liabilities and Fund Balances
$
46,077
$ 131,010
$ 564,799
$
-
57
CITY OF DIAMOND BAR
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes and loans
Due from other governments
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Unearned revenues
Due to other governments
Due to other funds
Retentions payable
Total Liabilities
Restricted for:
Community development projects
Public safety
Highways and streets
Capital Projects
Debt service
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
58
Capital Projects Debt Service
Funds Funds
Capital
Improvement Public Financing
Fund Authority
55,101 $ -
Total
Governmental
Funds
$ 5,652,538
- - 110,927
- - 284,154
83,370 - 357,083
- 333,694 333,694
$ 138,471 $ 333,694 $ 6,738,396
$ 117,666 $ - $ 361,258
- - 11,690
55,264 - 55,264
- - 45,888
- - 284,154
- - 49,692
2,602 - 2,602
175,532 - 810,548
- - 1,644,861
- - 453,730
- - 3,402,637
- - 146,567
- 333,694 333,694
(37,061) - (53,641)
(37,061) 333,694 5,927,848
$ 138,471 $ 333,694 $ 6,738,396
THIS PAGE INTENTIONALLY LEFT BLANK
59
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Total Revenues
Expenditures:
Current:
Public safety
Community development
Parks, recreation, and culture
Highways and streets
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) 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
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Special Revenue Funds
State Gas Tax Proposition A Proposition C Transportation
1,504,468 816,989 678,518
- 1,060,539 -
164 1,079 10,942 -
1,504,632 1,878,607 689,460 -
- 67,408 -
1,445,063 614,487
1,512,471 614,487 -
1,504,632 366,136 74,973 -
(844,959) (20,106) (118,702)
(844,959) (20,106) (118,702) -
659,673 346,030 (43,729) -
(101,101) (97,996) 2,011,253 4,275
- (4,275)
(101,101) (97,996) 2,011,253
$ 558,572 $ 248,034 $ 1,967,524 $ -
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011 (Continued)
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Total Revenues
Expenditures:
Current:
Public safety
Community development
Parks, recreation, and culture
Highways and streets
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) 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
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Special Revenue Funds
Integrated
Traffic
Air Quality
Park and
Waste
Congestion
Improvement
Facility
Management
Relief Fund
Fund
Development
22,450
-
52,359
91,739
500,419
-
-
-
3,307
1,014
754
5,010
526,176
1,014
53,113
96,749
222,747 - 54,753 7,700
222,747
54,753 7,700
303,429 1,014 (1,640) 89,049
(90,000) (414,217) - (203,356)
(90,000) (414,217) - (203,356)
213,429 (413,203) (1,640) (114,307)
577,460 448,646 148,207 968,279
577,460 448,646 148,207 968,279
$ 790,889 $ 35,443 $ 146,567 $ 853,972
61
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Total Revenues
Expenditures:
Current:
Public safety
Community development
Parks, recreation, and culture
Highways and streets
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) 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
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Special Revenue Funds
Asset Seizure
CDBG Fund COPS Fund Fund CLEEP Fund
351,590 100,000 -
- 756 1,861 273
351,590 100,756 1,861 273
- 9,120 - 9,930
193,834 - -
193,834 9,120 - 9,930
157,756 91,636 1,861 (9,657)
1 - - -
(157,757) (87,181) (103,038)
(157,756) (87,181) (103,038) -
4,455 (101,177) (9,657)
138,160 365,116 56,644
138,160 365,116 56,644
$ - $ 142,615 $ 263,939 $ 46,987
62
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011 (Continued)
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Total Revenues
Expenditures:
Current:
Public safety
Community development
Parks, recreation, and culture
Highways and streets
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) 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
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Special Revenue Funds
Edward Byrne Landscape Measure R
Justice Maintenance Local Return EECBG Grant
Assistance District Fund Fund Fund
$ - $ 556,562 $ - $ -
12,481 - 506,540 47,274
279 61 2,270 -
12,760 556,623 508,810 47,274
63,461
606,306
606,306 - 63,461
12,760 (49,683) 508,810 (16,187)
91,849
(12,481) - (264,722)
(12,481) 91,849 (264,722) -
279 42,166 244,088 (16,187)
(90) (13,901) 384,461 (393)
- - (63,750)
(90) (13,901) 320,711 (393)
$ 189 $ 28,265 $ 564,799 $ (16,580)
63
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
Revenues:
Taxes
Intergovernmental
Charges for services
Use of money and property
Total Revenues
Expenditures:
Current:
Public safety
Community development
Parks, recreation, and culture
Highways and streets
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) 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
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
64
Capital
Projects Funds
Capital
Improvement
Debt Service
Financing
Authority
Total
Governmental
Funds
$ - $ $ 556,562
474,999 4,659,407
- 1,560,958
- 341,340 369,110
474,999 341,340 7,146,037
- 19,050
542,495
- 67,408
- 2,665,856
1,592,910 - 1,592,910
- 290,000 290,000
37,461 37,461
1,592,910 327,461 5,215,180
(1,117,911) 13,879 1,930,857
1,602,092 1,693,942
- - (2,316,519)
1,602,092 - (622,577)
484,181 13,879 1,308,280
(521,242) 319,815 4,687,593
- (68,025)
(521,242) 319,815 4,619,568
$ (37,061) $ 333,694 $ 5,927,848
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
—
$ (101,101) $ (101,101) $ (101,101) $ -
1,547,146 1,547,146 1,504,468 (42,678)
- - 164 164
1,446,045 1,446,045 1,403,531 (42,514)
1,547,146 1,446,045 844,959 601,086
1,547,146 1,446,045 844,959 601,086
Budgetary Fund Balance, June 30 $ (101,101) $ - $ 558,572 $ 558,572
65
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A TRANSIT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Charges for services
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Parks, recreation and culture
Highways and Streets
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative) —
$ (97,996)
$ (97,996)
$ (97,996)
$ -
814,160
814,160
816,989
2,829
1,000,000
1,200,000
1,060,539
(139,461)
3,000
3,000
1,079
(1,921)
1,719,164
1,919,164
1,780,611
(138,553)
73,625
73,625
67,408
6,217
1,416,700
1,666,700
1,445,063
221,637
-
-
20,106
(20,106)
1,490,325
1,740,325
1,532,577
207,748
$ 228,839
$ 178,839
$ 248,034
$ 69,195
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C TRANSIT FUND
YEAR ENDED JUNE 30, 2011
67
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 2,011,253
$ 2,011,253
$ 2,011,253
$ -
Resources (Inflows):
Intergovernmental
675,323
675,323
678,518
3,195
Use of money and property
15,000
15,000
10,942
(4,058)
Amounts Available for Appropriation
2,701,576
2,701,576
2,700,713
(863)
Charges to Appropriation (Outflow):
Highways and Streets
771,200
771,200
614,487
156,713
Transfers out
180,000
180,000
118,702
61,298
Total Charges to Appropriations
951,200
951,200
733,189
218,011
Budgetary Fund Balance, June 30
$ 1,750,376
$ 1,750,376
$ 1,967,524
$ 217,148
67
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
INTEGRATED WASTE MANAGEMENT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Charges for services
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community development
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative) —
$ 577,460
$ 577,460
$ 577,460
$ -
22,984
22,984
22,450
(534)
531,000
531,000
500,419
(30,581)
5,000
5,000
3,307
(1,693)
1,136,444
1,136,444
1,103,636
(32,808)
345,330
345,330
222,747
122,583
90,000
90,000
90,000
-
435,330
435,330
312,747
122,583
$ 701,114
$ 701,114
$ 790,889
$ 89,775
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
TRAFFIC CONGESTION RELIEF FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30 $ 477,803 $ 477,803 $ 35,443 $ (442,360)
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative) —
$ 448,646
$ 448,646
$ 448,646
$ -
-
-
1,014
1,014
29,157
29,157
-
(29,157)
477,803
477,803
449,660
(28,143)
-
-
414,217
(414,217)
-
-
414,217
(414,217)
Budgetary Fund Balance, June 30 $ 477,803 $ 477,803 $ 35,443 $ (442,360)
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community development
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
—
$ 148,207 $ 148,207 $ 148,207 $ -
70,000 70,000 52,359 (17,641)
500 500 754 254
218,707 218,707 201,320 (17,387)
115,350 115,350 54,753 60,597
115,350 115,350 54,753 60,597
Budgetary Fund Balance, June 30 $ 103,357 $ 103,357 $ 146,567 $ 43,210
70
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PARK AND FACILITY DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community development
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 968,279 $ 968,279 $ 968,279 $ -
136,978 136,978 91,739 (45,239)
1 rnn 1 rnn ti nin *i r, in
I, IVV,/J/ I, IVV,/J! I,VVJ,VLV ,•T 1,/L.71
- - 7,700 (7,700)
893,799 896,519 203,356 693,163
RQ'2 7QQ RQR q,1Q 711 ngr, ARA; AA'%
Budgetary Fund Balance, June 30 $ 212,958 $ 210,238 $ 853,972 $ 643,734
71
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG FUND)
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community development
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
486,468 486,468 351,590 (134,878)
tow,-tuo YVV,'?VV JJ I,.J.71 %I 1 -*,0111
188,872 238,872 193,834 45,038
297,596 297,596 157,757 139,839
ARA AAR 91R AAR 'Ir,1 r1Q1 1 R R77
Budgetary Fund Balance, June 30 $ - $ (50,000) $ - $ 50,000
72
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND
YEAR ENDED JUNE 30, 2011
73
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Budgetary Fund Balance, July 1
$ 138,160
$ 138,160
$ 138,160
$ -
Resources (Inflows):
Intergovernmental
100,000
100,000
100,000
-
Use of money and property
1,000
1,000
756
(244)
Amounts Available for Appropriation
239,160
239,160
238,916
(244)
Charges to Appropriation (Outflow):
Public safety
14,000
14,000
9,120
4,880
Transfers out
104,000
104,000
87,181
16,819
Total Charges to Appropriations
118,000
118,000
96,301
21,699
Budgetary Fund Balance, June 30
$ 121,160
$ 121,160
$ 142,615
$ 21,455
73
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
ASSET SEIZURE FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
74
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 365,116
$ 365,116
$ 365,116
$ -
2,000
2,000
1,861
(139)
367,116
367,116
366,977
(139)
5,000
5,000
-
5,000
107,600
107,600
103,038
4,562
112,600
112,600
103,038
9,562
$ 254,516
$ 254,516
$ 263,939
$ 9,423
74
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public safety
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 56,644 $ 56,644 $ 56,644 $ -
500 500 273 (227)
57,144 57,144 56,917 (227)
5,500 5,500 9,930 (4,430)
5,500 5,500 9,930 (4,430)
Budgetary Fund Balance, June 30 $ 51,644 $ 51,644 $ 46,987 $ (4,657)
75
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
EDWARD BYRNE JUSTICE ASSISTANCE GRANT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
76
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ (90)
$ (90)
$ (90)
—
$ -
-
72,933
12,481
(60,452)
-
-
279
279
(90)
72,843
12,670
(60,173)
12,000
12,000
12,481
(481)
12,000
12,000
12,481
(481)
$ (12,090)
$ 60,843
$ 189
$ (60,654)
76
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE MAINTENANCE DISTRICT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Highways and Streets
Total Charges to Appropriations
Budgetary Fund Balance, June 30 $ (32,774) $ (15,752) $ 28,265 $ 44,017
77
Variance with
Final Budget
Budget Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ (13,901)
$ (13,901)
$ (13,901)
$ -
554,157
554,157
556,562
2,405
300
300
61
(239)
91,849
108,871
91,849
(17,022)
632,405
649,427
634,571
(14,856)
665,179
665,179
606,306
58,873
665,179
665,179
606,306
58,873
Budgetary Fund Balance, June 30 $ (32,774) $ (15,752) $ 28,265 $ 44,017
77
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
MEASURE R LOCAL RETURN FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1, as restated
Resources (Inflows):
Intergovernmental
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers out
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
—
$ 320,711 $ 320,711 $ 320,711 $ -
506,493 506,493 506,540 47
1,000 1,000 2,270 1,270
828,204 828,204 829,521 1,317
556,493 556,493 264,722 291,771
556,493 556,493 264,722 291,771
Budgetary Fund Balance, June 30 $ 271,711 $ 271,711 $ 564,799 $ 293,088
78
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
EECBG GRANT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Community development
Total Charges to Appropriations
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
—
$ (393) $ (393) $ (393) $ -
- 423,343 47,274 (376,069)
(393) 422,950 46,881 (376,069)
-_ 423,343 63,461 359,882
423,343 63,461 359,882
Budgetary Fund Balance, June 30 $ (393) $ (393) $ (16,580) $ (16,187)
79
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Licenses and permits
Intergovernmental
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Capital outlay
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ (521,242) $ (521,242)
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ (521,242) $ -
250,000
250,000
-
(250,000)
892,464
889,744
474,999
(414,745)
3,344,525
3,558,245
1,602,092
(1,956,153)
3,965,747
4,176,747
1,555,849
(2,620,898)
4,486,989
4,513,761
1,592,910
2,920,851
4,486,989
4,513,761
1,592,910
2,920,851
$ (521,242) $ (337,014) $ (37,061) $ 299,953
0
CITY OF DIAMOND BAR
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2011
Budgetary Fund Balance, July 1
Resources (Inflows):
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Debt service:
Principal retirement
Interest and fiscal charges
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
—
$ 319,815 $ 319,815 $ 319,815 $ -
- - 341,340 341,340
319,815 319,815 661,155 341,340
290,000 (290,000)
- 37,461 (37,461)
327,461 (327,461)
$ 319,815 $ 319,815 $ 333,694 $ 13,879
81
CITY OF DIAMOND BAR
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2011
Liabilities and Net Assets:
Governmental Activities - Internal Service Funds
Liabilities:
Computer
Equipment
Equipment
Self Insurance
Replacement
Replacement
$ -
$ -
Fund
Fund
Fund
Totals
Assets:
269,388
Total Liabilities
269,388
-
Current:
269,388
Net Assets:
Cash and investments
$ 1,261,862
$ 215,151
$ 404,611 $
1,881,624
Prepaid costs
1,373
-
-
1,373
Total Current Assets
1,263,235
215,151
404,611
1,882,997
Noncurrent:
1,726,436
Total Liabilities and Net Assets
$ 1,263,235
$ 242,326
Capital assets - net of accumulated depreciation
-
27,175
85,652
112,827
Total Noncurrent Assets
-
27,175
85,652
112,827
Total Assets
$ 1,263,235
$ 242,326
$ 490,263 $
1,995,824
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
$ 269,388
$ -
$ -
$ 269,388
Total Current Liabilities
269,388
-
-
269,388
Total Liabilities
269,388
-
-
269,388
Net Assets:
Invested in capital assets, net of related debt
-
27,175
85,652
112,827
Unrestricted
993,847
215,151
404,611
1,613,609
Total Net Assets
993,847
242,326
490,263
1,726,436
Total Liabilities and Net Assets
$ 1,263,235
$ 242,326
$ 490,263
$ 1,995,824
82
CITY OF DIAMOND BAR
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
Total Nonoperating
Governmental Activities - Internal Service Funds
Revenues (Expenses)
Computer
1,217
1,828
7,614
Equipment
Equipment
(547,833)
(14,123)
Self Insurance
Replacement
Replacement
446,528
-
Fund
Fund
Fund
Totals
Operating Expenses:
(14,123)
137,647
22,219
Administration and general
$ -
$ 4,458
$ - $
4,458
Insurance premiums
552,402
-
-
552,402
Maintenance and operations
-
-
18,201
18,201
Depreciation expense
-
10,882
5,480
16,362
Total Operating Expenses
552,402
15,340
23,681
591,423
Operating Income (Loss)
(552,402)
(15,340)
(23,681)
(591,423)
Nonoperating Revenues (Expenses):
Interest revenue
4,569
1,217
1,828
7,614
Total Nonoperating
Revenues (Expenses)
4,569
1,217
1,828
7,614
Income (Loss) Before Transfers
(547,833)
(14,123)
(21,853)
(583,809)
Transfers in
446,528
-
159,500
606,028
Changes in Net Assets
(101,305)
(14,123)
137,647
22,219
Net Assets:
Beginning of Year
1,095,152
256,449
352,616
1,704,217
End of Fiscal Year
$ 993,847 $
242,326 $
490,263 $
1,726,436
83
CITY OF DIAMOND BAR
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
Governmental Activities - Internal Service Funds
Cash Flows from Operating Activities:
Insurance premiums $ (553,775) $ - $ - $ (553,775)
Payments to suppliers - - (36,585) (36,585)
Cash paid to employees for services - (4,458) - (4,458)
Net Cash Provided (Used) by Operating Activities (553,775) (4,458) (36,585) (594,818)
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in 446,528 - 159,500 606,028
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
446,528 - 159,500 606,028
(30,765) (80,357) (111,122)
(30,765) (80,357) (111,122)
4,569 1,217 1,828 7,614
4,569 1,217 1,828 7,614
(102,678) (34,006) 44,386 (92,298)
1,364,540 249,157 360,225 1,973,922
$ 1,261,862 $ 215,151 $ 404,611 $ 1,881,624
$ (552,402) $ (15,340) $ (23,681) $ (591,423)
10,882 5,480 16,362
(1,373) - - (1,373)
- (18,384) (18,384)
(1,373) 10,882 (12,904) (3,395)
$ (553,775) $ (4,458) $ (36,585) $ (594,818)
84
Computer
Self Equipment
Equipment
Insurance Replacement
Replacement
Fund Fund
Fund Totals
Cash Flows from Operating Activities:
Insurance premiums $ (553,775) $ - $ - $ (553,775)
Payments to suppliers - - (36,585) (36,585)
Cash paid to employees for services - (4,458) - (4,458)
Net Cash Provided (Used) by Operating Activities (553,775) (4,458) (36,585) (594,818)
Cash Flows from Non -Capital
Financing Activities:
Cash transfers in 446,528 - 159,500 606,028
Net Cash Provided (Used) by
Non -Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Acquisition and construction of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
446,528 - 159,500 606,028
(30,765) (80,357) (111,122)
(30,765) (80,357) (111,122)
4,569 1,217 1,828 7,614
4,569 1,217 1,828 7,614
(102,678) (34,006) 44,386 (92,298)
1,364,540 249,157 360,225 1,973,922
$ 1,261,862 $ 215,151 $ 404,611 $ 1,881,624
$ (552,402) $ (15,340) $ (23,681) $ (591,423)
10,882 5,480 16,362
(1,373) - - (1,373)
- (18,384) (18,384)
(1,373) 10,882 (12,904) (3,395)
$ (553,775) $ (4,458) $ (36,585) $ (594,818)
84
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2011
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: Schedules
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. 1 - 4
Revenue Capacity — These schedules contain information to help the reader assess
the city's most significant local revenue source, the property tax. 5 - 8
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 9-11
issue additional debt in the future.
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. 12-14
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. 15-16
85
Governmental activities:
Invested in capital assets,
net of related debt(1)
Restricted for:
Capital projects
Community development
Public safety
Public works
Debt service
Unrestricted
Total governmental activities net assets
City of Diamond Bar
Net Assets by Component
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30,
2003 2004 2005 2006 2007
$ 8,237,553 $ 10,844,807 $ 10,692,694 $ 14,593,935 $ 375,216,400
5,988,178 241,767 3,775,552 3,323,474 3,446,872
1,398,057 1,296,806 1,013,495
245,763 243,697 321,747
26,205,849 31,231,827 29,775,169 29,461,178 34,072,884
$40,431,580 $ 42,318,401 $ 45,887,235 $ 48,919,090 $ 414,071,398
Note:
The City implemented GASB 34 for the fiscal year ended June 30, 2003.
Information prior to the implementation of GASB 34 is not available.
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.
Schedule 1
2008
2009
2010
2011
$ 370,949,296
$ 367,529,907
$ 377,940,738
$ 381,985,940
2,912,276 3,526,991
889,176 568,280
541,482
309,533 305,915
2,260,872
725,667
559,920
319,815
146,567
1,644,861
453,730
3,636,487
333,694
36,236,504 34,554,084 34,215,610 22,582,318
$ 411,296,785 $ 407,026,659 $ 416,022,622 $ 410,783,597
87
Expenses:
Governmental activities:
General government
Public safety
Highways and streets
Community development
Parks, recreation and culture
Interest on long-term debt
Total general revenues
Program revenues:
Governmental activities:
Charges for services
General Government
Public safety
Highways and streets
Community development
Parks, recreation and culture
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenues
General revenues:
Taxes
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Property transfer tax
Unrestricted Motor vehicle in lieu
Use of money and property
Other revenues
Total general revenues
Change in net assets
City of Diamond Bar
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30,
2003 2004 2005 2006 2007
$ 3,315,082 $ 3,713,530 $ 3,997,319 $ 4,203,123 $ 4,784,314
4,988,449
4,875,823
4,969,183
5,418,005
4,876,435
1,006,768
1,365,737
4,622,014
5,240,568
14,019,550
3,370,116
5,724,606
1,050,025
2,759,718
2,292,757
2,309,150
2,580,454
3,814,887
3,737,071
4,779,588
535,752
171,223
270,735
423,320
498,042
15,525,317
18,431,373
18,724,163
21,781,805
31,250,686
74,805
225,656
486,925
707,272
262,541
813,617
733,902
1,159,264
1,277,170
1,512,195
517,930
529,330
1,328,637
1,555,993
3,493,798
908,330
933,985
7,888
16,841
21,297
558,227
610,772
1,147,088
1,260,849
1,385,788
4,390,722
4,068,446
4,040,785
5,281,308
6,968,824
1,779,510
261,994
532,091
1,150
1,254,314
9,043,141 7,364,085 8,170,587 10,100,583 14,898,757
2,727,712
2,717,949
3,191,006
3,555,244
3,754,955
578,680
628,564
717,879
718,889
774,757
2,965,292
3,167,901
3,508,341
3,949,349
3,943,345
828,242
912,531
941,319
996,567
1,064,621
367,638
367,464
413,247
416,423
331,096
3,370,387
2,716,134
4,386,800
3,663,061
4,356,641
439,455
182,069
532,091
1,051,922
1,476,010
84,795
250,250
676,292
361,622
41,362
11,362,201
10,942,862
14,366,975
14,713,077
15,742,787
$ 4,880,025
$ (124,426)
$ 3,813,399
$ 3,031,855
$ (609,142)
Note:
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
Schedule 2
2008 2009 2010 2011
$ 4,473,666 $ 5,159,300 $ 4,973,685 $ 6,370,986
4,944,729
5,396,083
5,526,099
5,591,049
12,034,669
13,931,211
12,287,325
10,619,860
2,251,196
1,959,303
1,624,547
1,969,540
5,188,977
4,950,687
5,091,215
5,153,264
392,548
177,633
57,948
72,592
29,285,785
31,574,217
29,560,819
29,777,291
225,553
132,262
131,633
118,016
1,176,931
1,017,336
1,014,237
996,409
2,851,187
1,732,985
2,070,167
2,400,272
23,351
17,602
21,106
517,515
1,581,597
1,705,282
1,754,789
1,829,409
4,307,074
5,588,818
4,358,895
3,685,378
219,193
2,272,580
15,960,279
40,779
10,384,886 12,466,865 25,311,106 9,587,778
3,927,073
4,001,276
3,837,288
4,187,896
800,390
633,075
569,916
642,509
4,102,177
3,085,223
3,122,229
3,355,127
1,024,710
1,093,039
1,115,980
1,259,471
283,433
199,365
259,384
172,687
4,563,127
4,687,515
4,599,922
4,766,225
1,420,988
833,270
618,963
474,598
4,388
304,463
7,090
91,975
16,126,286
14,837,226
14,130,772
14,950,488
$ (2,774,613) $ (4,270,126) $ 9,881,059 $ (5,239,025)
City of Diamond Bar
Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 30,
2003 2004 2005 2006 2007
General fund:
Reserved $ 440,407 $ 866,843 $ 1,125,918 $ 1,310,172 $ 1,893,287
Unreserved 21,913,219 21,796,659 24,809,721 25,103,444 28,568,263
Total general fund 22,353,626 22,663,502 25,935,639 26,413,616 30,461,550
All other governmental funds
Reserved
5,719,861 105,861
5,555,988 2,274,829 3,311,451
Unreserved, reported in:
Comm development projects
1,644,861
Special revenue funds
8,030,278 6,043,352
6,111,202 5,485,933 5,736,366
Debt Service Fund
505,915
274,426
Capital projects funds
268,317 241,767
(5,443,309) (2,612,373) (4,681,728)
Total all other governmental funds 14,018,456 6,896,895 6,498,307 5,148,389 4,366,089
Total fund balances $ 36,372,082 $ 29,560,397 $ 32,433,946 $ 31,562,005 $ 34,827,639
2011
General fund:
Committed to:
Emergency contingencies $ 4,500,000
Unassigned 16,768,415
Total general fund 21,268,415
All other governmental funds:
Restricted for:
Comm development projects
1,644,861
Public safety
453,730
Highways and streets
3,636,487
Capital Projects
146,567
Debt service
333,694
Unassigned
(364,892)
Total all other governmental funds 5,850,447
Total fund balances $27,118,862
Note:
The City implemented GASB 54, titled "Fund Balance Reporting and Governmental Fund Type Definitions"
for the fiscal year ended June 30, 2011.
The City has elected to show only nine years of data for this schedule.
Source: City Finance Department
a
Schedule 3
2008 2009 2010
$ 1,864,387 $ 1,612,181 $ 1,955,477
31,065,127 30,041,357 28,841,621
32,929,514 31,653,538 30,797,098
5,810,250 2,754,526 1,735,077
4,955,552 5,423,979 4,894,552
319,815
(5,703,854) (2,701,642) (2,016,507)
5,061,948 5,476,863 4,932,937
$ 37,991,462 $ 37,130,401 $ 35,730,035
91
Revenues:
Taxes
Special assessments
Intergovernmental
Charges for services
Fines and forfeitures
Licenses and permits
Investment income
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Highway and streets
Parks, recreation and culture
Community development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
City of Diamond Bar
Changes in Fund Balances, Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 30,
2003 2004 2005 2006 2007 2008
$ 7,432,575 $ 7,759,331 $8,632,837 $9,508,757 $9,876,760 $10,165,881
557,601
555,232
593,778
504,908
541,382
543,561
8,602,856
6,353,152
8,306,557
8,821,141
11,169,052
9,896,948
706,137
709,011
761,040
870,314
1,002,210
1,111,655
813,617
733,903
713,201
589,922
546,902
637,484
1,467,127
1,457,345
1,732,555
2,389,149
4,247,626
3,121,476
658,922
395,929
654,066
1,250,570
1,716,194
1,629,257
74,818
234,951
480,740
792,216
767,457
826,177
20,313,653
18,198,854
21,874,774
24,726,977
29,867,583
27,932,439
3,163,516
3,663,055
3,787,005
3,551,659
4,402,235
3,987,656
4,973,248
4,857,179
4,954,630
5,404,259
4,880,290
4,933,958
1,006,768
1,365,737
4,301,146
4,769,497
5,114,274
4,926,418
1,946,025
2,114,090
2,750,815
2,613,834
3,475,549
3,714,762
2,808,613
3,419,856
1,050,025
2,748,539
2,292,757
2,246,496
8,057,482
9,261,289
1,682,830
5,320,597
5,344,935
4,271,890
235,000 240,000 255,000
1,167,502 145,580 237,487 404,075 493,840 411,583
23,123,154 24,826,786 18,763,938 25,047,460 26,243,880 24,747,763
(2,809,501) (6,627,932) 3,110,836 (320,483) 3,623,703 3,184,676
Bond issued 13,755,000
Bonds discount and issuance costs (769,300)
Transfers in 10,259,848 9,906,970 2,363,367 6,469,523 6,030,764 7,266,149
Transfers out (10,453,243) (10,090,723) (2,600,654) (6,733,961) (6,354,106) (7,608,749)
Total other financing
sources (uses)
Net changes in fund balances
Debt service as a
percentage of noncapital
expenditures
12,792,305 (183,753) (237,287) (264,438) (323,342) (342,600)
9,982,804 (6,811,685) 2,873,549
7.48% 0.82% 1.38%
The City has elected to show only nine years of data for this schedule.
Source: City Finance Department
92
(584,921) 3,300,361 2,842,076
3.18% 2.91% 2.89%
Schedule 4
2009 2010 2011
$ 9,119,375 $ 8,591,893 $ 9,646,883
550,822
556,989
556,562
12,081,466
11,478,456
9,441,959
1,460,828
3,191,416
3,390,367
601,533
607,936
567,575
1,445,324
640,287
818,913
938,053
648,503
499,377
1,018,956
30,766
113,578
27,216,357
25,746,246
25,035,214
5,071,860
4,435,858
4,977,021
5,407,476
5,524,279
5,580,507
5,607,870
5,183,964
5,002,456
3,673,282
3,655,029
3,712,194
1,945,951
1,604,220
1,960,125
5,508,167
5,161,924
11,480,595
265,000 280,000 290,000
187,212 33,904 37,461
27,666,818 25,879,178 33,040,359
(450,461) (132,932) (8,005,145)
6,629,225 4,379,718 2,929,528
(7,039,825) (4,795,374) (3,535,556)
(410,600) (415,656) (606,028)
(861,061) (548,588) (8,611,173)
1.77% 1.35% 1.45%
93
THIS PAGE INTENTIONALLY LEFT BLANK
94
Net Assessed Value
$8,000,000,000
$7,000,000,000
$6,000,000,000
$5,000,000,000
C
C $4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
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.
Prior to 2007, all SBE Nonunitary Railroad Properties were taxed at the tax rate area level. As of 2007, there was
legislation passed that requires Counties to track this value for the each county in a specific tax rate area and it's
distributed differently. Therefore from this year forward, Cities can no longer keep tracking how much value there
is on railroad properties within each City.
Source: HDL Coren & Cone and Los Angeles County Auditor/Controller-Property Tax Division.
95
Schedule 5
City of Diamond Bar
Assessed and Estimated Actual Values of Taxable
Property
2001/02 - 2010/11 Taxable Property Values
(unaudited)
Fiscal
Year
Real Property
Less
Total Taxable
Total
Ended
Secured
Unsecured
Other Tax
Assessed
Direct
June 30,
Property
Property
Property Exemptions
Value
Tax Rate
% Change
2001-02
$4,328,002,037
$ 71,531,889
$ 127,441 $ 41,869,703
$4,357,791,664
0.04849
5.63%
2002-03
4,662,888,926
69,981,865
122,697 44,188,829
4,688,804,659
0.05122
7.60%
2003-04
5,051,058,871
77,407,924
140,122 47,621,182
5,080,985,735
0.05134
8.36%
2004-05
5,410,300,487
76,173,121
174,846 39,831,091
5,446,817,363
0.05313
7.20%
2005-06
5,842,972,449
83,223,023
163,090 51,408,286
5,874,950,276
0.05288
7.86%
2006-07
6,359,723,846
90,751,985
134,088 28,682,577
6,421,927,342
0.05280
9.31%
2007-08
6,824,177,817
109,704,881
0 39,859,238
6,894,023,460
0.05485
7.35%
2008-09
7,151,359,322
99,170,064
0 48,909,164
7,201,620,222
0.05270
4.46%
2009-10
7,071,193,381
90,528,493
0 66,422,679
7,095,299,195
0.05274
-1.48%
2010-11
7,183,008,793
81,410,401
0 70,706,628
7,193,712,566
0.05270
1.39%
Net Assessed Value
$8,000,000,000
$7,000,000,000
$6,000,000,000
$5,000,000,000
C
C $4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
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.
Prior to 2007, all SBE Nonunitary Railroad Properties were taxed at the tax rate area level. As of 2007, there was
legislation passed that requires Counties to track this value for the each county in a specific tax rate area and it's
distributed differently. Therefore from this year forward, Cities can no longer keep tracking how much value there
is on railroad properties within each City.
Source: HDL Coren & Cone and Los Angeles County Auditor/Controller-Property Tax Division.
95
City of Diamond Bar
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Value)
Agency
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
Basic Levy*
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
County Detention Facilities 1987 Debt
0.00113
0.00103
0.00099
0.00092
0.00080
0.00066
0.00000
LA County Flood Control
0.00107
0.00088
0.00046
0.00025
0.00005
0.00005
0.00000
Metropolitan Water District
0.00770
0.00670
0.00610
0.00580
0.00520
0.00470
0.00450
Mt. San Antonio College
0.00000
0.01946
0.01525
0.01473
0.02122
0.02530
0.01750
Pomona Unified School Dist
0.12202
0.12342
0.12633
0.12910
0.12488
0.12401
0.11379
Rowland Heights Unified
0.03636
0.03618
0.03780
0.03885
0.03633
0.07429
0.06944
Walnut Valley Unified School Dist
0.09163
0.10086
0.09660
0.09515
0.09140
0.08749
0.08462
Total Direct & Overlapping Tax Rates
1.2599
1.2885
1.2835
1.2848
1.2799
1.3165
1.2899
City's Share of 1 % Levy Per Prop 13"
0.05192
0.05192
0.05192
0.05192
0.05192
0.05192
0.05192
General Obiligation Debt Rate
Redevelopment Rate*
Total Direct Rate* 0.0485 0.0512 0.0513 0.0531 0.0529 0.0528 0.0549
*
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.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping
rates apply to all city property owners.
RDA rate is based on the largest RDA tax rate area(TRA) and includes only rate(s) from indebtedness adopted prior to 1989
per California State statute. RDA direct and overlapping rates are applied only to the incredmental property values.
Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical
section information.
Schedule 6
2008/09 2009/10 2010/11
1.00000 1.00000 1.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00430
0.00430
0.00370
0.02333
0.02571
0.02636
0.11577
0.14546
0.17721
0.07029
0.06769
0.07538
0.11297
0.11674
0.11839
1.3267 1.3599 1.4010
0.05192 0.05192 0.05192
0.0527 0.0527 0.0527
97
Schedule 7
City of Diamond Bar
Top 10 Property Taxpayers
Current Year and Nine Years Ago
Source: Hdl Coren & Cone.
2010-11
Percentage of Total
Current Taxpayers
Assessed Valuation
Net Assessed Valuation
Country Hills Holding LLc
$ 45,568,348
0.630%
Diamond Bar Gateway Corp Inc
43,000,000
0.600%
VIF II Hampton At Diamond Bar LLC
37,790,169
0.530%
CRP 2 Holdings CC LP
32,100,000
0.450%
Target Corporation
28,181,964
0.390%
Muller Rock 2 Gateway
24,933,653
0.350%
Behringer Harvard Western Portfolio LP
23,200,000
0.320%
Gateway Corporate Center LP
17,600,000
0.240%
Margaret M. Tam Trust
17,193,362
0.240%
2936 Main St Associatiates LLC
17,061,890
0.240%
$ 286,629,386
3.990%
2001-02
Percentage of Total
Taxpayers Nine Years Ago
Assessed Valuation
Net Assessed Valuation
Diamond Bar Business Corporation
$ 22,481,017
0.520%
IRP Muller Associates LLC
22,056,480
0.510%
M & H Realty Partners II
19,673,993
0.450%
Martin Brattrud Properties
14,681,041
0.340%
H R Barros Family LP
13,941,356
0.320%
PGP Inland Communities
13,169,274
0.300%
Lakeview Village Corporation
12,750,172
0.290%
Shea Homes LP
12,064,282
0.280%
Arden Realty Finance III LLC
10,861,701
0.250%
Lincoln Emerald Pointe
8,728,058
0.200%
$ 150,407,374
3.460%
Source: Hdl Coren & Cone.
Schedule 8
City of Diamond Bar
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Fiscal Year
Taxes Levied
Collected within the
Collections in
Ended
for the
Fiscal Year
of Levy
Subsequent
June 30
Fiscal Year
Amount
% to Levy
Years % to Levy
2002
$ 2,289,208
$ 2,161,417
94.42%
$ 127,792
5.58%
2003
2,474,222
2,376,390
96.05%
97,831
3.95%
2004
2,699,991
2,584,106
95.71%
115,884
4.29%
2005
2,870,810
2,739,911
95.44%
130,899
4.56%
2006
3,107,457
2,800,968
90.14%
306,489
9.86%
2007
3,378,087
3,116,729
92.26%
261,359
7.74%
2008
3,582,055
3,260,073
91.01%
321,981
8.99%
2009
3,781,997
3,458,210
91.44%
323,786
8.56%
2010
3,715,310
3,424,173
92.16%
291,137
7.84%
2011
3,753,506
3,508,491
93.47%
245,015
6.53%
Source: Los Angeles County Auditor/Controller.
City Finance Department
Fiscal Year
Ended
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
City of Diamond Bar
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Lease
Other
Total
Revenue
Bond &
Governmental
Bonds (a)
Loans
Activities
13,755,000
0
13,755,000
13,755,000
0
13,755,000
13,755,000
0
13,755,000
13,655,000
0
13,655,000
13,520,000
0
13,520,000
13,280,000
0
13,280,000
13,025,000
0
13,025,000
12,760,000
0
12,760,000
12,480,000
0
12,480,000
12,190,000
0
12,190,000
Schedule 9
Total
% of
Debt
Primary
Personal
Per
Government
Income (b)
Capita (b)
13,755,000
0.92%
237
13,755,000
0.88%
234
13,755,000
0.84%
232
13,655,000
0.79%
229
13,520,000
0.74%
227
13,280,000
0.70%
223
13,025,000
0.68%
217
12,760,000
0.68%
212
12,480,000
0.64%
225
12,190,000
Unavailable
Unavailable
Note:
(a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial state
(b) Details regarding the City's population and personal income can be found in the Demographic and Economi
Statistics Table.
Source: City Finance Department
100
City of Diamond Bar
Direct and Overlapping Debt
June 30, 2011
(unaudited)
Gross Bonded
Debt Balance
Schedule 10
% Applicable Net Bonded
To City (1) Debt
Direct Debt as of June 30, 2011
Diamond Bar Lease Revenue Bond $ 12,190,000 100.000 $ 12,190,000
Overlapping Debts as of June 30, 2011 (2)
330.10 Metropolitan Water District
107,259,876
0.847
908,565
809.50 Mt San Antonio Com Col Dis 2001 Ser S-A
1,130,000
10.808
122,126
809.51 Mt San Antomio Com Col Dis 2004 Ser B
8,080,000
10.808
873,253
809.52 Mt San Antomio CCD DS 05 Ref Bond
55,835,843
10.808
6,034,511
809.53 Mt San Antomio CD DS 01, 06 Ser C
79,461,712
10.808
8,587,898
809.54 Mt San Antomio DS 2001. 2008 Series D
24,602,430
10.808
2,658,930
915.51 Pomona Unified School District 2011 Ser A
45,970,000
19.856
9,127,685
915.57 Pomona Unified School District Refund Ser 1997A
28,980,000
19.856
5,754,194
915.62 Pomona Unified School District 2000 Ser A
17,115,000
19.856
3,398,310
915.64 Pomona Unified SD Refunding 2001 Ser A Debt Svc
17,670,000
19.856
3,508,510
915.65 Pomona Unified SD 2002 Ser A Debt Service
7,850,000
19.856
1,558,676
915.66 Pomona Unified School District 2002 Ser B
12,185,000
19.856
2,419,422
915.67 Pomona Unified School District 2002 Ser C
12,755,000
19.856
2,532,600
915.68 Pomona Unified School District 2002 Ser D
13,070,000
19.856
2,595,146
915.69 Pomona Unified School District 2002 Ser E
12,050,000
19.856
2,392,617
915.70 Pomona Unified School District 2007 Ref Bds
8,728,661
19.856
1,733,140
915.71 Pomona Unified School District 2008 Series A
34,700,000
19.856
6,889,943
915.75 Pomona Unified School District 2011 (QSCBS)
4,030,000
19.856
800,186
980.50 Walnut Valley Unified SD 2011
27,987,385
59.726
16,715,718
980.51 Walnut Valley Unified SD 2011 Refunding Bonds
13,465,000
59.726
8,042,093
980.55 Walnut Valley Unified SD Refund Series 1997 A
23,247,718
59.726
13,884,909
980.58 Walnut Valley Unified SD 2000 Series C
255,000
59.726
152,301
980.59 Walnut Valley Unified SD 2000 Series D
13,715,243
59.726
8,191,552
980.60 Walnut Valley Unified SD 2000 Series E
6,001,837
59.726
3,584,651
980.61 Walnut Valley Unified SD 2005 Ref Bonds
11,420,000
59.726
6,820,698
980.62 Walnut Valley Unified SD 2007 (Measure S)
25,580,000
59.726
15,277,885
980.63 Walnut Valley Unified SD 2007 (Measure Y)
6,950,887
59.726
4,151,480
Total Overlapping Debts:
620,096,592
138,716,999
Grand Total Direct and Overlapping Debt:
$ 632,286,592
$150,906,999
Debt to Assessed Valuation Ratios as of June 30, 2011
2010/11 Net Assessed Valuation: $ 7,193,712,566 Direct Debt 0.17% $219
2010 Total City Population: 55,766 Overlapping Debt 1.93% $2,487
Total Debt 2.10% $2,706
Note:
(1) Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city.
(2) The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city.
Source:
Hdl Coren & Cone
U.S. Census Bureau
City Finance Department
101
Fiscal Year
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
Fiscal Year
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)
2002 2003 2004
Schedule 11
2005 2006
$4,357,791,664 $4,688,804,659 $ 5,080,985,735 $ 5,446,817,363 $5,874,950,276
41,869,703
44,188,829
47,621,182
39,831,091
51,408,286
4,399,661,367
4,732,993,488
5,128,606,917
5,486,648,454
5,926,358,562
25%
25%
25%
25%
25%
1,099,915,342
1,183,248,372
1,282,151,729
1,371,662,114
1,481,589,641
15%
15%
15%
15%
15%
164,987,301
177,487,256
192,322,759
205,749,317
222,238,446
13,755,000
13,755,000
13,755,000
13,755,000
13,520,000
$ 151,232,301 $ 163,732,256 $ 178,567,759 $ 191,994,317 $ 208,718,446
2007 2008 2009 2010 2011
$6,421,927,342 $6,894,023,460 $ 7,201,620,222 $ 7,095,299,195 $7,193,712,566
28,682,577
39,859,238
48,909,164
66,422,679
70,706,628
6,450,609,919
6,933,882,698
7,250,529,386
7,161,721,874
7,264,419,194
25%
25%
25%
25%
25%
1,612,652,480
1,733,470,675
1,812,632,347
1,790,430,469
1,816,104,799
15%
15%
15%
15%
15%
241,897,872
260,020,601
271,894,852
268,564,570
272,415,720
13,280,000
13,025,000
12,760,000
12,480,000
12,190,000
$ 228,617,872 $ 246,995,601 $ 259,134,852 $ 256,084,570 $ 260,225,720
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.
Source: Section 43605 of the California Government Code
Hdl Coren & Cone
City Finance Department
102
City of Diamond Bar
Demographic and Economic Statistics
General Information
Date of Incorporation April 18, 1989
Form of Government Council -Manager
Area 14.76 Square Miles
Miles of Streets 128
Public Safety
Police Protection Los Angeles County Sheriff Department
Fire Protection Los Angeles County Fire Department
Water Services
Service Provider Walnut Valley Water District
Education
School District Pomona Unified School District
Schools 1 High School, 1 Middle School, & 4 Elementary Schools
School District Walnut Valley Unified School District
Schools 1 High School, 2 Middle Schools, & 4 Elementary Schools
Demographic and Statistical Information (Last Ten Calendar Years)
Personal
Per Capita
Calendar
Income
Personal
Unemployment
Year
Population
(In Thousands)
Income
Rate
2001
57,032
$ 1,468,388
$ 25,747
4.00%
2002
58,035
1,499,464
25,837
4.80%
2003
58,843
1,555,942
26,442
4.90%
2004
59,304
1,642,869
27,702
4.60%
2005
59,528
1,721,421
28,918
3.80%
2006
59,497
1,827,966
30,724
3.40%
2007
59,629
1,903,585
31,924
3.60%
2008
59,920
1,929,498
32,201
5.30%
2009
60,184
1,885,698
31,332
8.30%
2010
55,766
1,960,418
35,154
9.10%
Sources: * U.S. Census Bureau
HdL Cornen & Cone
City Finance Department
103
Schedule 12
Pop 25+ Pop 25+
Median High School Bachelor
Age Degree Degree
39.2 93.1% 46.7%
39.8 92.0% 47.6%
Schedule 13
City of Diamond Bar
Principal Employers
(unaudited)
Current Fiscal Year and Nine Fiscal Years Ago
Total
6,ouy nia
Note:
Total city employment 28,700 in 2011, provided by California Labor Market.
Data Source: Info USA HdL,
104
2011
Number of
Percent of
Company Name
Employees
Rank
Employment
South Coast Air Quality Management
798
1
2.78%
Walnut Valley Unified School District
580
2
2.02%
Allstate Insurance Co
425
3
1.48%
Travelers
401
4
1.40%
Pomona Unified School District
204
5
0.71%
AAA Auto Club of California
200
6
0.70%
Farmers Insurance Group
160
7
0.56%
First Team Real Estate
150
8
0.52%
Century 21 Diamond Realty
120
9
0.42%
Goodrich Sensors And Intgrd Systems
120
10
0.42%
Total
3,158
11.00%
2002
Number of
% of City
Company Name
Employees
Rank
Employment
South Coast Air Quality Management
725
1
n/a
Avnet
600
2
n/a
Acosta Sales & Marketing Group
450
3
n/a
Walnut Valley Unified School District
441
4
n/a
Allstate Insurance Co
400
5
n/a
Automatic Data Processing
280
6
n/a
Pacific Pump & Gear
255
7
n/a
Pomona Unified School District
168
8
n/a
Diamond Realty
150
9
n/a
Lucas Aerospace Electro Prods
120
10
n/a
Total
6,ouy nia
Note:
Total city employment 28,700 in 2011, provided by California Labor Market.
Data Source: Info USA HdL,
104
Note:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
A full-time emplyee is scheduled to work 2,080 hours per year (including vacation and sick leave).
Source: City Finance Department
105
Schedule 14
City of Diamond Bar
Full-time and Part-time City Government Employees
by Function/Program
Fiscal Year Ended June 30,
Function
2002
2003 2004
2005
2006
General government
24
24 25
25
22
Community development
4
4 5
7
8
Community services
37
38 45
74
77
Public works
4
5 6
7
7
Total
69
71 81
113
114
Fiscal Year Ended June 30,
Function
2007
2008 2009
2010
2011
General government
21
24 25
21
24
Community development
8
6 7
8
8
Community services
74
69 71
75
75
Public works
8
10 10
9
9
Total
111
109 113
113
116
Note:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
A full-time emplyee is scheduled to work 2,080 hours per year (including vacation and sick leave).
Source: City Finance Department
105
Function
Police: (1)
Physical arrests
Street Sweeping Parking Citation
Fire: (2)
Number of emergency calls
Inspections
Public works: (3)
Street resurfacing (miles)
Parks and recreation:(4)
Number of recreation classes
Number of facility rentals
Function
Police:(in fiscal year) (1)
Physical arrests
Street Sweeping Parking Citation
Fire: (in fiscal 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(5)
Number of facility rentals
Schedule 15
City of Diamond Bar
2,595
2,561
2,654
Operating Indicators by Function
1,114
1,085
1,100
Last Ten Fiscal Years
1,202
19.6
18.5
_ Fiscal Year Ended June 30,
23.3
2002 2003
2004
2005
2006
2,456
571 552
481
520
558
7,995 6,662
6,710
6,250
5,790
2,666 2,741
2,755
2,615
2,592
(a) (a)
1,206
1,159
837
19.7 18.5
5.0
18.6
16.8
947 915
1,022
1,102
1,376
785 1,021
1,736
4,123
4,305
Fiscal Year Ended June 30,
2007 2008 2009 2010 2011
582 543 591 700 647
5,684 5,200 5,103 5,110 4,137
2,612
2,595
2,561
2,654
2,594
1,114
1,085
1,100
979
1,202
19.6
18.5
13.8
23.3
12.0
1,558
1,569
1,315
2,456
2,115
4,555
4,103
4,299
4,111
4,147
(a) Unavailable
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Dep East Regional Operation Bureau
(3) City Public Works Department
(4) City Community Services Department
(5) Includes online classes
Note: Indicators are not available for the general government function.
1:
Schedule 16
City of Diamond Bar
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30,
Function
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Public safety (1)
Police:
Station
1
1
1
1
1
1
1
1
1
1
Patrol units (all shifts combined)
20
20
20
20
19
19
18
18
18
18
Fire stations (2)
3
3
3
3
3
3
3
3
3
3
Highways and streets (3)
Streets (miles)
128
128
128
128
128
128
128
128
129.4
129.4
Streetlights
(a)
(a)
(a)
(a)
(a)
233
233
233
294
294
Traffic signals
(a)
(a)
(a)
(a)
(a)
74
74
74
76
76
Culture and recreation:(4)
Parks acreage (developed)
62.7
62.7
62.7
62.7
62.7
62.7
62.7
62.7
62.7
63.6
Parks acreage (undeveloped)
439.0
439.0
439.0
439.0
439.0
439.0
439.0
439.4
439.4
440.3
Parks
11
11
11
11
11
11
11
12
12
13
Public Tennis courts
8
8
8
8
8
8
8
8
8
8
Community centers
3
3
3
3
3
3
3
3
3
3
Golf Course:(5)
County golf courses
1
1
1
1
1
1
1
1
1
1
Sewer (3)
Sanitary sewers (miles)
(a)
(a)
(a)
(a)
(a)
157
157
157
158.4
158.4
(a) The City fully implemented the new reporting model of the Infrastructure Valuation and Asset Management System in accordance with
GASB 34 in FY2007.
Sources:
(1) Police Walnut/Diamond Bar Station
(2) LA County Fire Department, Division VIII Office
(3) City Public Works Department
(4) City Community Services Department
(5)LA County Golf Course
Note:
The City is a contract city and as such contracts for many of its services. This includes police services,
fire services, building and safety services, engineering, road maintenance and landscape maintenance.
No capital asset indicators are available for the general government function.
107
THIS PAGE INTENTIONALLY LEFT BLANK
108