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Home My WebLink AboutCAFR - FY 2013-14CITY OF DIAMOND BAR, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2014 Prepared by: Finance Department Dianna Honeywell Director of Finance CITY OF DIAMOND BAR, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2014 Prepared by: Finance Department Dianna Honeywell Director of Finance THIS PAGE INTENTIONALLY LEFT BLANK CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal.................................................................................................. GFOA Certificate of Achievement for Excellence in Financial Reporting ................. OrganizationChart.................................................................................................... List of Elected and Administrative Officials............................................................... FINANCIAL SECTION Independent Auditors' Report................................................................................... Management's Discussion and Analysis (Required Supplementary Information).... BASIC FINANCIAL STATEMENTS Government -wide Financial Statements Statementof Net Position............................................................................ Statement of Activities.................................................................................. Fund Financial Statements Balance Sheet — Governmental Funds ........................................................ Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position.................................................................. Statement of Revenues, Expenditures, and Changes in Fund Balances.... Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities. Budgetary Comparison Statement - General Fund .................................... Statement of Net Position — Proprietary Funds ........................................... Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds........................................................................ Statement of Cash Flows — Proprietary Funds ............................................ Notes to Basic Financial Statements.............................................................. Page(s) ... i .vi vii viii 1 5 15 16 18 .19 .20 .24 .25 .27 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS Page(s) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds.....................................................50 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds.......................................................................56 Budgetary Comparison Schedules - Special Revenue Funds: StateGas Tax Fund.................................................................................................................61 Proposition A Transit Fund......................................................................................................62 Proposition C Transit Fund.....................................................................................................63 Transportation Grant Fund.......................................................................................................64 Integrated Waste Management Fund......................................................................................65 TrafficImprovement Fund........................................................................................................66 Air Quality Improvement Fund.................................................................................................67 Trails& Bikeways Fund............................................................................................................68 Park and Facility Development Fund.......................................................................................69 Community Development Block Grant (CDBG) Fund.............................................................70 Citizens Option for Public Safety (COPS) Fund......................................................................71 AssetSeizure Fund..................................................................................................................72 California Law Enforcement Equipment Program (CLEEP) Fund ...........................................73 Landscape Maintenance District Fund.....................................................................................74 Measure R Local Return Fund.................................................................................................75 WasteHauler Fund..................................................................................................................76 Budgetary Comparison Schedule - Capital Projects Funds: CapitalImprovement Fund.......................................................................................................77 Budgetary Comparison Schedule - Debt Service Funds: PublicFinancing Authority........................................................................................................78 Combining Statement of Net Position — Internal Service Funds.................................................79 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position — Internal Service Funds................................................................................80 Combining Statement of Cash Flows — Internal Service Funds..................................................81 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS STATISTICAL SECTION Financial Trends: Page(s) Net Position by Component - Last Ten Fiscal Years..................................................................84 Changes in Net Position - Last Ten Fiscal Years........................................................................86 Fund Balances of Governmental Funds - Last Ten Fiscal Years...............................................89 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years ............................90 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years.................93 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years.........................................94 Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago ............................ 96 Secured Property Tax Levies and Collections — Last Ten Fiscal Years.....................................97 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years.....................................................98 Directand Overlapping Debt.......................................................................................................99 Computation of Legal Debt Margin - Last Ten Fiscal Years .....................................................100 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years ..........................................101 Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago ....................................102 Operating Information: Full -Time Equivalent City Employees by Function - Last Ten Fiscal Years .............................103 Operating Indicators by Function - Last Ten Fiscal Years ........................................................104 Capital Asset Statistics by Function - Last Ten Fiscal Years....................................................105 THIS PAGE INTENTIONALLY LEFT BLANK Carol Herrera Mayor Steve Tye Mayor Pro Tem Ling -Ling Chang Council Member Nancy A. Lyons Council Member Jack Tanaka Council Member City of Diamond Bar 21810 Copley Drive . Diamond Bar, CA 91765-4178 November 5, 2014 (909) 839-7000 • Fax (909) 861-3117 www.DiamondBarCA.gov 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, 2014. 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, 2014, 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 unmodified opinion that the City's financial statements for the fiscal year ended June 30, 2014, were fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. CITY OF DIAMOND BAR * ANNIVERSARY£. * Cr .-. GPCJAAI4 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 56,400, 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 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 contracting for City Attorney services. 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 Fiscal year 2013/14 saw meaningful improvement in the national, state and local economies. Unemployment rates have continued to come down and consumer spending is on the rise. The housing market has continued to improve. Homes have gained back the value lost during the recession with most above pre -recession values. Property sales are maintaining the surge that began last year. Fiscal year 2013/14 was a year of continued growth for the City of Diamond Bar. It was a year of monitoring where revenues were headed, while holding costs to prior year levels wherever possible. The General Fund reserves increased by $2.2 million during FY 13114 with the unassigned fund balance growing to $15.2 million and total General Fund reserves coming in at $19.8 million. These reserve figures represent 79.4% and 103.3%, respectively, of total General Fund expenditures. The City's sales tax base continued to grow with an increase in revenue of 3.2% over last year. The City's interest in promoting economic development has become increasingly important. 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. City officials have been working diligently toward its economic development goal to diversify its sales tax base. The coming fiscal year promises to bring new, exciting and more diverse options for residents and businesses to "Shop Diamond Bar". Home values also saw a significant rise during FY 2013114. The largest revenue source in the City, Property Tax revenue, was up 5.6%. The City also saw a significant increase in home sales which is evidenced by an increase of 23.5% in Property Transfer Tax revenue. Another sign that the local economy is continuing to recover is the increase in building permit activity. All categories of permits saw a healthy increase in revenue for an overall increase of 30.4% in building permit revenue. This is, in part, due to the development of the area commonly known as "Site D" or the "Willow Heights" housing development. FY 2013/14 saw the sale of land that the Walnut Valley School District owned, along with a small portion that the City owned. The Willow Heights housing development will include 182 dwelling units and a 2.5 acre public park. This is the first large-scale housing project constructed in the City during the last several years. FY 2014/15 will see the completion of 100 of the units with the remainder being completed in FY 2015/16. 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. AWARDS 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, 2013, 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 nineteen consecutive years (fiscal years ended 1995 through 2013). We believe our current report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate. REPORTING ENTITY AND ITS SERVICES This Comprehensive Annual Financial Report includes all funds of the City. The City directly provides a limited range of services and contracts for several other services. The City's significant reliance on contracted services has the benefit of reducing expenses to the citizens of the City of Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding to changing economic conditions. Contracted services include police protection, building and safety, street maintenance, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include: community development (which includes planning, economic development, building and safety management, and neighborhood improvement), public works (which includes engineering, capital projects administration, street maintenance contract management, traffic and transportation matters, engineering contract management, and solid waste contract management), community services (which includes senior services, park maintenance, recreation services, community center operation, and landscape maintenance), public information, 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 and excellence found within the City's Finance Department staff, and through the cooperation of the entire City staff. Each City staff member has my iv sincere appreciation for their cooperation and contributions in the preparation of this Report. I would like to thank Dianna Honeywell, Finance Director, for her prudent fiscal stewardship. In addition, I would also like to thank our independent auditor, Lance, Solt, and Lunghard, L.L.P., who provided 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 V � 2 ) co \ E 2 a �E ®))/ § kf}\ . ■§ 2\{ Lu j } \ ( uj u . B) { LU E ' \ / - §� \3: E2 }}}� }} u (ai � ■ a ■ § k C6 -r- �# c L.o Ek E��> ° « P k\ _ }\( CL E �= 2 �] # §. � ® m E ) § § Ln LY U � \ ■ u _ # v =)a)§ ){:o>a } (I } ( ( w( u \c,\/!, U)E C§in § \2§z»&§ _■ b2`E�Lz .2 { � of ca } _ I(){ 0\\� > \ 2 E w w u u IU}�� tm 2 § § 2 � j \ .0■ § • 2 a # } Q 0 { { £ ° t , &: u ,) } k } \ vii} CITY OF DIAMOND BAR ELECTED AND ADMINISTRATIVE OFFICIALS Mayor Mayor Pro Tern Councilmember Councilmember Councilmember City Manager Deputy City Manager City Clerk Director of: Community Services Community Development Finance Information Systems Public Works FISCAL YEAR 13-14 viii Carol Herrera Steve Tye Ling -Ling Chang Jack Tanaka Nancy J. Lyons James DeStefano Ryan McLean Tommye Cribbins Bob Rose Greg Gubman Dianna Honeywell Ken Desforges David Liu LSE00000 CERTIFIED PUBLIC ACCOUNTANTS V I" A Division of LSL, CPAs viLmure, peeLer & boucher INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Report on Financial Statements • David E. Hale, CPA, CFP • Donald G. Slater, CPA • Richard K. Kikuchi, CPA • Susan F. Matz, CPA • Bryan S. Gruber, CPA • Deborah A. Harper, CPA • Gary A. Cates, CPA • Michael D. Mangold, CPA • David S. Myers, CPA 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, (the City) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Diamond Bar, California, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Lance, Soil & Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL 714.672.0022 Fax 714.672.0331 www.lslcpas.com Orange County Temecula Valley Silicon Valley LSE.: li0 sem CERTIFIED PUBLIC ACCOUNTANTS A OiNMOn M 191. CPAs viLmure. peerer & Boucher To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis 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 inquiries, the basic financial statements, 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 5, 2014 on our consideration of the City'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 2 :Oo LSL:: CERTIFIED PUBLIC ACCOUNTANTS - E.SL. CPAs vi�mure. peeler & boucher To the Honorable Mayor and Members of the City Council City of Diamond Bar, California control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Brea, California November 5, 2014 3 THIS PAGE INTENTIONALLY LEFT BLANK 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, 2014. 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 revenues and other financing sources from all sources equaled $28,813,023. • The total cost of all City programs equaled $32,814,380. • The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by $398,429,156 (net position). Of this amount, $20,894,700 represents unrestricted net position 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 $25,139,671, an increase of $2,192,162 in comparison with the prior year. Approximately $15.1 million of the $25.1 million is available for spending at the City's discretion. • At the end of the current fiscal year, unrestricted fund balance for the general fund was $15,199,698, or 79.4% of the amount of general fund expenditures. The General Fund unassigned balance of $15.1 million is in addition to a $4.5 million assigned 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. 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. 5 The statement of net position presents information on all of the City of Diamond Bar's assets, liabilities and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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 of the fiscal year. Such information may be useful in assessing the near-term financing requirements necessary to finance City programs. 0 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, building 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 position may serve over time as a useful indicator of the City's financial position. The City of Diamond Bar's assets exceeded liabilities by $398,429,156 at the close of 2014. (see Table 1) By far the largest portion of the City's net position (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 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 Position Current and other assets Capital assets Total Assets Long-term debt outstanding Other Liabilities Total Liabilities Net position: Net investment in capital assets Restricted Unrestricted Total Net Position Governmental Activities 2014 2013 $30,963,679 $28,419,412 383,069,197 389,876,038 414,032,876 418,295,450 12,003,205 12,301,447 3,600,515 3,563,490 15, 603, 720 15, 864, 937 372,068,596 378,511,311 5,465,860 5,410,779 20, 894, 700 18, 508,423 $398,429,156 $402,430,513 The City's net position decreased by $4,001,357. This decrease is primarily due to higher depreciation expense which reduces net position At the end of fiscal year 2014 the City reports an increase of $2,386,277 in the unrestricted net position 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 $20,894,700 in Unrestricted Net Position. 0 Table 2 City of Diamond Bar's Changes in Net Position 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 Othertaxes Motor vehicle in lieu Use of money & property Other Gain/(Loss) on Disposal of Capital Asset Total revenues Expenses: 2014 2013 $7,218,940 $6,153,683 4,203,990 4,024,537 207,971 690,732 4,307,077 4,080,273 851,249 782,952 3,658,327 3,546,239 1,393,584 1,465, 666 471,455 333,250 4,862,100 4,659,994 256,758 6,307 52,891 533,475 1,328,681 (21,057) 28,813,023 26,256,051 General Government 7,301,502 6,942,983 Public Safety 5,627,026 5,831,227 Highways and Streets 10,599,386 10,197,098 Community Development 2,346,073 1,980,646 Parks, Recreation and Culture 6,463,192 5,591,917 Interest and Fiscal Charges 477,201 487,369 Total expenses 32,814,380 31,031,240 Increase(Decrease) in net position (4,001,357) (4,775,189) Net position - beginning 402,430,513 405,860,546 Restatement of Net Position 0 1,345,156 Net position - ending $398,429,156 $402,430,513 Revenues In the Statement of Activities, the City's total revenues were $28.8 million, while the total cost of all programs and services was $32.8 million. Revenues this fiscal year were 9.7% higher than those of the prior year. There were increases across the revenue categories which resulted in the overall change in revenue. The following are highlights of some of the major differences: • As expected, Property Tax revenues were up 5.6% from FY12-13. The housing market continued to improve during FY 13-14 which afforded greater inflation/Proposition 13 based adjustments. Housing sales also continued to increase which allowed the County to increase overall assessed valuations by 5.47% during 2014 while Diamond Bar's assessed valuations were up by 5.6% during 2014. 9 • Transient Occupancy Taxes grew by 8.7% in FY 13-14 as the local economy stabilized and business and vacation travel continued to increase. • The proceeds from the sale of the property commonly known as "Site Y where recognized this fiscal year. The City's portion of the proceeds were $2,282,406. • Sales tax revenues were up about 3.2% due to continued improvement in the local economy. • Investment Income increased by 14.6%, excluding the fair market value adjustment of $102,558, due to improving investment yields available in the bond market coupled with more of the City's portfolio being more diversified rather than a bulk of the funds being invested in money market funds. With the Federal Reserve's stimulus plan beginning to ease in early 2014, rates began to rise slightly during FY 13/14. The Local Agency Investment Fund (LAIF) rate also started to show some improvement and ended the fiscal year near 0.25%. By the end of FY 13/14 the City's overall investment yield increased from 0.74% in FY 2012/13 to 0.87% in FY 2013/14. Expenses Once again this year, the City has continued to be very diligent in controlling growth in expenses. This year expenses for the City totaled $32.8 million which is us approximately $1.8 million, or 5.7% higher than the previous fiscal year. This increase was due in part to one time expenses reflected as follows: • There was an increase in General Government expenses of approximately 5.2% this year. This was due primarily to filling vacant staff vacancies, a bi-annual election that took place during the fiscal year and the increased costs related to water and utilities. • There was a decrease in Public Safety expenses of approximately 3.5% this year. This was due to the fact that the Community Relations Officer position was vacant for half of FY 2013/14 as well as a year- long vacancy of a motor officer. • The Streets and Highways category was higher this year by a little over $400,000. This is due to an increase in the number of Capital Improvement projects completed during the fiscal year. 10 • Community Development expenses were higher in 2013/14 by $365,000. The increase reflects increase professional services required due to increased building activity during the year. • Parks, Rec & Culture was up significantly ($871,275) due to higher operations costs for utilities and more capital projects being completed compared to last year. 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, unassigned fund balance may serve as a useful measure of a City's net resources available for spending at the end of the fiscal year. At June 30, 2014, the City of Diamond Bar's governmental funds reported combined ending fund balances of $25,139,671, an increase of $2,192,162 in comparison with the prior year. Approximately 60.1% of this amount ($15,111,059) constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is either nonspendable, restricted or assigned to indicate that it is 1) not in spendable form ($62,752), 2) restricted for particular purposes ($5,465,860) or 3) assigned for particular purposes ($4,500,000). The general fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the general fund was $15,199,698, while the total fund balance was $19,762,450. 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 79.4% of total general fund expenditures, while total fund balance represents 103.3% of the same amount. 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 increased $2,225,734. Factors contributing to the change in General Fund balance reserves are as follows: 11 General Fund revenues were up significantly ($1,407,675 or 7.5%) from FY12/13. The largest increase was in the Intergovernmental category. This was due to the sale of Proposition A Funds to the City of Industry in exchange for General Fund money. This transaction exchanges restricted funds for discretionary funds which the City may use to administer its many different programs. The Taxes category also had a significant increase, primarily due to an increase in property tax, sales tax and franchise tax revenues. • Permit revenue was also up due to increased volume in building activity. For the past few years the City has been struggling with three landscape and lighting assessment districts which continue to see rising utility and maintenance costs. The assessments for these districts have not been adjusted to keep up with the cost of maintaining these districts. This year's subsidy is at an all-time high of nearly $200,000. The general fund has continued to subsidize these districts while the City Council considers various options to make these districts self sustaining. Costs were higher this year in the General Fund by $1,065,062 (5.9%) as compared to last year due to overall increases in operating expenditures, utilities and professional services. 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. General Fund Budgetary Highlights Original revenue budget projections were increased during the year by 4.9% to reflect the improvement in the local economy and an increase in tax revenues coupled with increased building activity. The actual revenue came in higher than anticipated by $1.6 million. This is due primarily to the fact that the sale of the property commonly referred to as "Site D" was sold during the year but not budgeted. This is offset by the fact that transfers into the General Fund were lower than anticipated. General Fund appropriations were increased during the year by $3,792,434 or 17.7% from the original budget to the amended budget. The final expenditures actually came in $3,462,216 less than the amended budget due to fewer projects being completed therefore lower transfers out of the General Fund. These projects have been carried over to the new fiscal year. 12 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, 2014, amounts to $383,069,197 (net of accumulated depreciation). This investment in capital assets includes land, Right of Way, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and construction in progress. Table 3 City of Diamond Bar Capital Assets (net of depreciation) Land Right of Way Buildings and Improvements Furniture and Fixtures Vehicles & Equipment Infrastructure Construction in Progress 2014 2013 $5,633,624 $6,587,349 265,614,104 265,614,104 22,777,534 24,719,493 798,058 960,421 953,119 829,352 86,624,556 90,757,435 668,202 407,884 $383,069,197 $389,876,038 The City's capital assets decreased in value $6,806,841 during FY13/14. This decrease was due, in part, to the sale of land known as "Site D" for the new housing development known as Willow Heights. The remainder of the decrease was due to depreciation expense. Construction in progress at the end of the year included ten projects in various stages of design or construction. The ten projects equaling $668,202 include street rehabilitation projects, traffic mitigation projects, a median modification project and a trail 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 $12,003,205. Of this amount $369,104 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: 13 Outstanding Long Term Debt at Year-end Variable Rate Lease Revenue Bonds (backed by the Public Financing Authority) $ 10,785,000 Unamortized Bond Premium 215,601 CJPIA General Liability Deposit 67,148 Compensated Absences 566,352 Net OPEB Obligation 369,104 $ 12,003,205 See footnote 6 for additional information on the City's long-term liabilities as of June 30, 2014. 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 2014/2015 budget is a fiscally conservative budget. As the economy continues to improve, anticipated revenues in the General Fund reflect moderate yet realistic growth. The ongoing operations budget has been maintained at the status quo as much as possible. 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. The City has made a conscientious decision to use some general fund balance reserves for economic development purposes. As a result, the FY 14/15 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 POSITION JUNE 30, 2014 Assets: Cash and investments Receivables: Accounts Notes and loans Accrued interest Prepaid costs Due from other governments 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 Noncurrent liabilities: Due within one year Due in more than one year Total Liabilities Net Position: Net investment in capital assets Restricted for: Community development projects Public safety Public works Capital projects Debt service Unrestricted Total Net Position See Notes to Financial Statements 15 Governmental Activities $ 28,517,404 519,085 362,009 45,873 64,125 1,437,555 15,004 2,624 271,915,930 111,153,267 414, 032, 876 1,580,979 382,946 37,914 8,417 1,228,250 362,009 796,539 11,206,666 15,603,720 372,068,596 1,174,082 140,747 4,015,113 135,914 4 20, 894, 700 $ 398,429,156 CITY OF DIAMOND BAR STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 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 Primary Government Expenses Program Revenues Operating Capital Charges for Contributions Contributions Services and Grants and Grants Net (Expenses) Revenue and Changes in Net Position Governmental Activities $ 7,301,502 $ 770,908 $ - $ - $ (6,530,594) 5,627,026 1,424,984 101,552 - (4,100,490) 2,346,073 547,118 283,997 - (1,514,958) 6,463,192 1,804,189 85,935 99 (4,572,969) 10,599,386 2,671,741 3,732,506 207,872 (3,987,267) 477,201 - - - (477,201) $ 32,814,380 $ 7,218,940 $ 4,203,990 $ 207,971 (21,183,479) 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 Gain on disposal of capital asset Total General Revenues Change in Net Position Net Position at Beginning of Year Net Position at End of Year See Notes to Financial Statements 16 4,307,077 851,249 3,658,327 1,393,584 471,455 4,862,100 256,758 52,891 1,328,681 17,182,122 (4,001,357) 402,430,513 $ 398,429,156 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. 17 CITY OF DIAMOND BAR BALANCE SHEET GOVERNMENTALFUNDS JUNE 30, 2014 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, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Assigned to: Emergency contingencies Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances See Notes to Financial Statements 18 $ 1,020,146 $ Other Total 364,856 Governmental Governmental General Funds Funds 1,228,250 - $21,330,524 $ 5,474,042 $ 26,804,566 341,012 176,916 517,928 - 362,009 362,009 45,873 - 45,873 62,752 - 62,752 977,190 460,365 1,437,555 6,570 - 6,570 2,624 - 2,624 15,000 4 15,004 $ 22,781,545 $ 6,473,336 $ 29,254,881 $ 1,020,146 $ 543,888 $ 1,564,034 364,856 18,090 382,946 - 8,417 8,417 1,228,250 - 1,228,250 - 362,009 362,009 - 6,570 6,570 2,613,252 938,974 3,552,226 405,843 157,141 562,984 405,843 157,141 562,984 62,752 - 62,752 - 1,174,082 1,174,082 - 140,747 140,747 - 4,015,113 4,015,113 - 135,914 135,914 - 4 4 4,500,000 - 4,500,000 15,199,698 (88,639) 15,111,059 19,762,450 5,377,221 25,139,671 $22,781,545 $ 6,473,336 $ 29,254,881 CITY OF DIAMOND BAR RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2014 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. Long-term debt and compensated absences that have not been included in the governmental fund activity: Bonds payable $ (10,785,000) Unamortized bond premiums/discounts (215,601) CJPIA deposit payable (67,148) Compensated Absences (566,352) Other post employment benefit obligation (369,104) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. Revenues reported as unavailable 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 position. Net Position of governmental activities See Notes to Financial Statements 19 $ 25,139,671 382,530,131 (12,003,205) (37,914) 562,984 2,237,489 $ 398,429,156 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2014 Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year See Notes to Financial Statements 20 1,426,112 (2,582,441) 2,282,406 3,430,616 (3,239,845) 4,856,728 (5,822,286) 2,282,406 1,126,077 190,771 1,316,848 2,225,734 (33,572) 2,192,162 17,536,716 5,410,793 22,947,509 $ 19,762,450 $ 5,377,221 $ 25,139,671 Other Total Governmental Governmental General Funds Funds Revenues: Taxes $ 10,638,609 $ 549,402 $ 11,188,011 Licenses and permits 1,421,921 120,844 1,542,765 Intergovernmental 5,462,100 4,819,885 10,281,985 Charges for services 1,805,093 1,516,790 3,321,883 Use of money and property 241,713 40,039 281,752 Fines and forfeitures 582,844 - 582,844 Miscellaneous 85,558 - 85,558 Total Revenues 20,237,838 7,046,960 27,284,798 Expenditures: Current: General government 4,313,821 801,500 5,115,321 Public safety 5,595,720 6,301 5,602,021 Community development 1,639,782 585,865 2,225,647 Parks and recreation 4,302,114 104,840 4,406,954 Public works 2,744,553 2,954,212 5,698,765 Capital outlay 542,191 1,976,426 2,518,617 Debt service: Principal retirement - 350,000 350,000 Interest and fiscal charges - 492,159 492,159 Total Expenditures 19,138,181 7,271,303 26,409,484 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,099,657 (224,343) 875,314 Other Financing Sources (Uses): Transfers in Transfers out Proceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year See Notes to Financial Statements 20 1,426,112 (2,582,441) 2,282,406 3,430,616 (3,239,845) 4,856,728 (5,822,286) 2,282,406 1,126,077 190,771 1,316,848 2,225,734 (33,572) 2,192,162 17,536,716 5,410,793 22,947,509 $ 19,762,450 $ 5,377,221 $ 25,139,671 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, 2014 Net change in fund balances - total governmental funds $ 2,192,162 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 $ 1,287,625 Depreciation Expense (7,322,367) Proceeds of capital assets (2,282,406) Gain on disposal of capital assets 1,321,383 (6,995,765) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal repayments 350,000 Amortization of bond premium 14,126 CJPIA General Liability Cumulative Deposit (67,148) Other post employment benefit obligation (62,417) Compensated Absences (24,917) 209,644 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 832 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 190,973 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. 400,797 Change in net position of governmental activities $ (4,001,357) See Notes to Financial Statements 21 CITY OF DIAMOND BAR BUDGETARY COMPARISON STATEMENT GENERALFUND YEAR ENDED JUNE 30, 2014 See Notes to Financial Statements 22 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 17,536,716 $ 17,536,716 $ 17,536,716 $ - Resources (Inflows): Taxes 10,177,990 10,395,087 10,638,609 243,522 Licenses and permits 1,126,964 1,387,464 1,421,921 34,457 Intergovernmental 5,041,544 5,436,214 5,462,100 25,886 Charges for services 1,726,736 1,776,736 1,805,093 28,357 Use of money and property 150,000 137,500 241,713 104,213 Fines and forfeitures 520,000 535,900 582,844 46,944 Miscellaneous 223,000 223,200 85,558 (137,642) Transfers in 1,502,100 2,448,536 1,426,112 (1,022,424) Proceeds from sale of capital asset - - 2,282,406 2,282,406 Amounts Available for Appropriation 38,005,050 39,877,353 41,483,072 1,605,719 Charges to Appropriation (Outflow): General government City Council 181,609 181,609 155,373 26,236 City Attorney 320,000 295,000 206,848 88,152 City Manager/Clerk 1,125,627 1,117,128 962,213 154,915 Finance 538,253 497,253 484,765 12,488 Human resources 289,621 281,121 256,268 24,853 Information systems 830,225 858,725 848,228 10,497 General government 355,998 361,998 329,149 32,849 Public information 572,715 636,315 620,600 15,715 Civic Center 404,007 479,813 450,377 29,436 Subtotal general government 4,618,055 4,708,962 4,313,821 395,141 Public safety Law Enforcement 5,917,736 5,946,736 5,414,082 532,654 Fire Protection 7,500 7,500 7,359 141 Animal Control 134,667 134,667 120,487 14,180 Emergency preparedness 60,640 60,640 53,792 6,848 Subtotal public safety 6,120,543 6,149,543 5,595,720 553,823 Community development Comm. Dev. & PI. Adm. 649,054 729,348 602,640 126,708 Building and Safety 482,900 553,900 562,460 (8,560) Neigh.lmprv. 311,832 311,832 301,225 10,607 Eco. Devel. 317,372 368,822 173,457 195,365 Subtotal community development 1,761,158 1,963,902 1,639,782 324,120 Parks, recreation, and culture Comm. Srvcs. Adm. 399,569 410,069 401,630 8,439 Diamond Bar Ctr. 853,989 981,549 962,334 19,215 Park Operations 1,096,687 1,138,027 1,162,593 (24,566) Recreation 1,796,943 1,858,762 1,775,557 83,205 Subtotal parks, recreation, and culture 4,147,188 4,388,407 4,302,114 86,293 Highways and streets Public Works 684,694 758,670 646,299 112,371 Engineering 381,906 467,922 416,948 50,974 Road Maint. 1,247,904 1,525,622 1,345,143 180,479 Landscape Maint. 363,375 363,375 336,163 27,212 Subtotal highways and streets 2,677,879 3,115,589 2,744,553 371,036 Capital outlay 359,750 686,981 542,191 144,790 Transfers out 1,705,831 4,169,454 2,582,441 1,587,013 Total Charges to Appropriations 21,390,404 25,182,838 21,720,622 3,462,216 Budgetary Fund Balance, June 30 $16,614,646 $ 14,694,515 $19,762,450 $ 5,067,935 See Notes to Financial Statements 22 CITY OF DIAMOND BAR STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2014 Assets: Current: Cash and investments Receivables: Accounts Prepaid costs Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Total Liabilities Net Position: Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position See Notes to Financial Statements 23 Governmental Activities - Internal Service Funds $ 1,712,838 1,157 1,373 1,715, 368 539,066 539,066 $ 2,254,434 $ 16,945 16,945 539,066 1,698,423 2,237,489 $ 2,254,434 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2014 Operating Revenues: Sales and service charges Total Operating Revenues Operating Expenses: Insurance Premiums Equipment repair and maintenance Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers Transfers in Changes in Net Position Net Position: Beginning of Year End of Fiscal Year See Notes to Financial Statements 24 Governmental Activities - Internal Service Funds $ 9,950 9,950 344,325 184,874 54,083 583,282 (573,332) 8,571 8,571 (564,761) 965,558 400,797 1,836,692 $ 2,237,489 CITY OF DIAMOND BAR STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2014 Cash Flows from Operating Activities: Insurance Premiums (paid)/refund received Payments to suppliers Cash received from (payments to) others Net Cash Provided (Used) by Operating Activities Cash Flows from Non -Capital Financing Activities: Cash transfers in 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 accounts receivable Increase (decrease) in accounts payable Increase (decrease) in retrospective deposit payable Total Adjustments Net Cash Provided (Used) by Operating Activities See Notes to Financial Statements 25 Governmental Activities - Internal Service Funds $ (432,923) (204,715) 24,423 (613,215) 965,558 965,558 (243,007) (243,007) 8,571 8,571 117,907 1,594,931 $ 1,712,838 $ (573,332) 54,083 14,473 (19,841) (88,598) (39,883) $ (613,215) THIS PAGE INTENTIONALLY LEFT BLANK 26 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2014 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 when the component unit provides services almost entirely to the City. Blended Component Units 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. Separate financial statements are not prepared for this blended component unit. b. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The City has no business -type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 27 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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 fund's 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 year. 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. 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 28 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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 City's fund structure also includes the following fund types: Special Revenue Funds have are used for specific revenue sources that have restricted uses for special purposes. Capital Project Funds are used to account for the financial resources used for the acquisition and construction of capital assets and/or projects. Debt Service Funds are used to account for the receipt of revenues and payments of debt service related to outstanding bonds. 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. 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. 29 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 1: Reporting Entity and Significant Accounting Policies (Continued) f. Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity (an original maturity date of three months or less from the date of purchase) that they present insignificant risk of changes in value because of changes in interest rates. Cash and cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City. All cash and investments of the proprietary (internal service) funds are pooled with the City's pooled cash and investments and are therefore considered cash equivalents for purposes of the statement of cash flows. g. Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of contribution. Capital asset purchases (other than infrastructure) in excess of $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, 2014, 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, 2014. 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 5 years Infrastructure 10 - 50 years Equipment 5 — 20 years h. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only 30 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 1: Reporting Entity and Significant Accounting Policies (Continued) under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grant revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. i. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. j. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. k. Compensated Absences Vacation and sick leave time begin to accumulate as of the first day of employment to a maximum of 360 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. 31 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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 m. Use of Estimates 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 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. n. 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 a resolution. • 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 32 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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. The City implemented GASB Statement 65, Items Previously Reported as Assets and Liabilities. GASB 65, among other things, amends prior guidance with respect to the treatment of debt issuance costs. Debt issuance costs should be recognized in the period incurred rather than reported on the statement of net position as deferred charges and recognized systematically over the life of the debt. 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. Budget Basis of Accounting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). b. At June 30, 2014, the following funds had deficit fund balances: Other Governmental Funds: Capital Improvement Fund 33 88,639 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 3: Cash and Investments Cash and Investments Cash and investments at June 30, 2014, consisted of the following: Statement of Net Position: Cash and investments $ 28,517,404 Cash and investments with fiscal agents 15,004 $ 28,532,408 Cash and investments held by the City at June 30, 2014, consisted of the following: Imprest cash on hand $ 1,750 Demand deposits 1,508,304 Investments: United States Government Sponsored Enterprise Securities 11,458,390 Certificates of Deposit 7,213,395 Local Agency Investment Fund 8,335,565 Held by fiscal agents: Escrow deposits 15,000 Money Market Mutual Funds 4 $ 28,532,408 Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address' interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. 34 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 3: Cash and Investments (Continued) (1) Notes must be rated "A" or better N/A - Not Applicable Investments Authorized by Debt Agreements Maximum Maximum Percentage of Investment in Portfolio One Issuer None None 40% Maximum Authorized Investment Type Maturity United States Treasury Obligations 5 years United States Government Sponsored Enterprise 10% 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 (1) Notes must be rated "A" or better N/A - Not Applicable Investments Authorized by Debt Agreements 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 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. Authorized Investment Type United States Treasury Obligations United States Government Sponsored Enterprise Securities Banker's Acceptance Time Certificate of Deposits Local Agency Investment Fund Money Market Funds Repurchase Obligations Tax Exempt Taxable Government Money Market Portfolios 35 Maximum Maximum Percentage Maturity of Portfolio None None None 1 year None None None 30 days None 10% None None None None None Equal to six months of principal and interest in the bonds Maximum Investment in n-- 1 -- None None None None None None None None CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 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: Remaining Maturity (in Months) 12 Months or Investment Type Less 1 - 3 years 3 - 5 years Total US Government Sponsored Securities $ 1,487,865 $ 3,489,839 $ 6,480,686 $ 11,458,390 Certificate of Deposits 746,075 2,746,346 3,720,974 7,213,395 Local Agency Investment Fund (LAIF) 8,335,565 - - 8,335,565 Held by Fiscal Agents: Lawyers Title Co. - Escrow Deposit 15,000 15,000 Money Market Mutual Funds 4 - - 4- $ 10,584,509 $ 6,236,185 $ 10,201,660 $ 27,022,354 Disclosures Relating to Credit Risk 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 Moody's, as of year-end for each investment type: 36 Total as of Investment Type June 30,2014 Aaa Unrated US Government Sponsored Securities $ 11,458,390 $ 11,458,390 $ - Certificate of Deposits 7,213,395 7,213,395 - Local Agency Investment Fund (LAIF) 8,335,565 - 8,335,565 Held by Fiscal Agents: Lawyers Title Co. - Escrow Deposit 15,000 15,000 Money Market Mutual Funds 4 - 4 Total $ 27,022,354 $ 18,671,785 $ 8,350,569 36 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 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, 2014, 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 Transfers and Due To/From Other Funds Transfers In Transfer Out Amount General Fund Other Governmental Funds $ 1,426,112 Other Governmental Funds General Fund 1,616,883 Other Governmental Funds Other Governmental Funds 1,813,733 Internal Service Funds General Fund 965,558 $ 5,822,286 Transfers to the General Fund from the Other Governmental Funds were made to reimburse the General Fund for various capital projects and administrative expenditures. 37 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 4: Interfund Transfers and Due To/From Other Funds (Continued) Transfers from the General Fund to the Other Governmental Funds were made to fund various capital improvement projects, the City general plan revision, a fund deficit and debt service payments. Transfers from Other Governmental Funds to Other Governmental Funds were made to fund various capital improvement projects. Transfers from the General Fund to the Internal Service Funds were made to fund the self-insurance, equipment replacement, computer equipment replacement and building facility maintenance. Due from other funds Due to other funds General Fund Other Governmental Funds Amount $ 6,570 $ 6,570 Short-term borrowings were made from the General Fund to Other Governmental Funds due to negative cash. This is expected to be repaid in the immediate future with reimbursements. Note 5: Capital Assets A summary of changes in the Governmental Activities capital assets at June 30, 2014, 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 Balance at July 1, 2013 Transfers Additions Deletions June 30, 2014 $ 6,587,349 $ $ $ 953,725 $ 5,633,624 265,614,104 - 265,614,104 407,884 (550,359) 810,677 - 668,202 272,609,337 (550,359) 810,677 953,725 271,915,930 40,639,225 319,081 - 40,958,306 1,428,111 117,653 8,035 1,537,729 2,244,135 - 283,221 99,455 2,427,901 190,096,216 550,359 - 1,292 190,645,283 234,407,687 550,359 719,955 108,782 235,569,219 15,919,732 - 2,261,040 - 18,180,772 467,690 280,016 8,035 739,671 1,414,783 153,448 93,449 1,474,782 99,338,781 4,681,946 - 104,020,727 117,140,986 7,376,450 101,484 124,415,952 117,266,701 550,359 (6,656,495) 7,298 111,153,267 $ 389,876,038 $ - $ (5,845,818) $ 961,023 $ 383,069,197 Depreciation expense was charged to functions in the Statement of Activities as follows: General government $ 701,915 Public safety 14,443 Highways and streets 4,776,140 Parks, recreation and culture 1,829,869 Internal Service Funds depreciation charges to program 54,083 T 7 17A Arm 38 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 6: Long -Term Liabilities Long-term liability activity for the year ended June 30, 2014, 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 are reset on a bi-weekly basis. 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 terminated 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. Refinancing of the 2002 Series A Lease Revenue Bonds (Community/Senior Center Project) 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, these Bonds were refinanced and $12,190,000 was defeased. Subsequently, $11,790,000 in Bonds were issued with the interest rate 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. 39 Balance Balance at Due Within July 1, 2013 Additions Deletions June 30, 2014 One Year Bonds payable Revenue Bonds $ 11,135,000 $ - $ 350,000 $ 10,785,000 $ 365,000 CJPIA General Liability Cumulative Deposit Payable 88,598 - 21,450 67,148 - Compensated absences 541,435 437,470 412,553 566,352 431,539 Net OPEB obligation (Note 10) 306,687 70,389 7,972 369,104 - Total $ 12,071,720 $ 507,859 $ 791,975 11,787,604 $ 796,539 Net unamortized bond premium 215,601 Net Long -Term Debt $ 12,003,205 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 are reset on a bi-weekly basis. 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 terminated 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. Refinancing of the 2002 Series A Lease Revenue Bonds (Community/Senior Center Project) 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, these Bonds were refinanced and $12,190,000 was defeased. Subsequently, $11,790,000 in Bonds were issued with the interest rate 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. 39 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 6: Long -Term Liabilities (Continued) Payments and Associated Debt As of June 30, 2014, 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. Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $566,352 at June 30, 2014, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Note 7: CJPIA Retrospective Deposit Liability Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013, for the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2011, annual retrospective adjustment is included in these balances. The City at June 30, 2014, had a retrospective deposit due of $67,148 related to the Workers' Compensation program. Optional Payment Plans When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. 40 Fixed Rate Debt Year Ending June 30 Principal Interest Total 2015 $ 365,000 $ 478,406 $ 843,406 2016 385,000 467,456 852,456 2017 400,000 455,906 855,906 2018 420,000 435,906 855,906 2019 440,000 414,906 854,906 2020-2024 2,535,000 1,763,181 4,298,181 2025-2029 3,195,000 1,151,413 4,346,413 2030-2034 3,045,000 361,788 3,406,788 Totals $ 10.785.000 $ 5.528.962 $ 16.313.962 Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $566,352 at June 30, 2014, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Note 7: CJPIA Retrospective Deposit Liability Retrospective deposits and refunds are cost allocation adjustments to prior coverage periods. Some claims take many years to resolve and over time their estimated value changes. The retrospective adjustments are calculated annually and take into consideration all the changes in claim values that occurred during the most recent year. The formula is designed to adequately cover the cost of claims brought against members and to ensure the overall financial strength and security of the Authority. The formula was developed to be as equitable as possible by taking into consideration both risk exposure and claims experience of individual members. CJPIA has temporarily deferred the payment on retrospective deposits owed to the Authority by members. The payment deferral period extends until July 1, 2013, for the Liability program and July 1, 2015 for the Workers' Compensation program. Retrospective deposit payments are scheduled to resume on these dates. The October 2011, annual retrospective adjustment is included in these balances. The City at June 30, 2014, had a retrospective deposit due of $67,148 related to the Workers' Compensation program. Optional Payment Plans When retrospective deposit payments resume as indicated above, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive plan are available to members choosing to voluntarily accelerate payment during the deferral period. 40 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 7: CJPIA Retrospective Deposit Liability (Continued) After the deferral period, members choosing from among the optional payment plans will be subject to a moderate annual fee. The fee is intended to provide a means for the Authority to recover otherwise foregone investment earnings and to serve as a minor disincentive for the selection of longer financing terms. Retrospective Balances will Change Annually. Retrospective balances will change with each annual computation during the payment deferral period. Member balances may increase or decrease as a result of the most recent year's claim development. Accordingly, some members who chose to pay off their balance in full may be required to pay additional retrospective deposits in the future based on the outcome of actual claim development reflected in subsequent retrospective deposit computations. Conversely, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds to the member. More information on the CJPIA retrospective balances can be found on the CJPIA website at CJPIA.org. Note 8: 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 119 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. a. Self -Insurance Programs of the Authority Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool -wide basis. This subsequent cost re -allocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required. The total funding requirement for self-insurance programs is estimated using actuarial models and pre -funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk -sharing pool. Additional information regarding the cost allocation methodology is provided below. Liability With respect to 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 41 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 8: Liability, Property and Workers' Compensation Protection (Continued) 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. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained by the Authority. 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. The $3.0 million annual aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from $15 million to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under 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 $30 million per occurrence. This $30 million subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate limit. 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 $5 million is purchased as part of a reinsurance policy, and Employer's Liability losses from $5 million to $10 million are pooled among members. b. Purchased Insurance Pollution Legal Liability 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 42 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 8: Liability, Property and Workers' Compensation Protection (Continued) 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, 2011 through July 1, 2014. 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 $33,506,528. 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. Earthquake and Flood Insurance The City of Diamond Bar purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Diamond Bar property currently has earthquake protection in the amount of $0. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. 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 2013-14. 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 9: 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 43 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 9: Pension Plan (Continued) PERS Executive Office 400 P Street, Sacramento, California 95814. Funding Policy The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by PERS. Active City employees are required to contribute 7% of their annual covered salary to PERS. The City makes the contributions required of City employees on their behalf and for their account 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 10.282% of covered payroll. The City's contributions to CalPERS for the years ending June 30, 2014, 2013 and 2012, were 418,370, $394,659 and $445,185 respectively and were equal to the required contribution for each year. Plan Description In connection with the retirement benefits for employees described in Note 10, 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. Public Employees' Pension Reform Act — PEPRA Assembly Bill (AB) 340 created the Public Employees' Pension Reform Act (PEPRA) that implemented new benefit formulas and final compensation period, as well as new contribution requirements for employees hired on or after January 1, 2013 who meet the definition of new member as per PEPRA. New miscellaneous members will participate in the Miscellaneous 2% at age 62 risk pool that was created by the CalPERS Board in November 2012 in response to the passage of PEPRA. The employer contribution rate is 6.25% of reportable compensation and will be good until June 30, 2015. This rate will not be revised until the June 30, 2014, actuarial valuation of the Miscellaneous 2% at the 62 risk pool is completed in the fall of 2014 that will set the contribution requirement for fiscal year July 1, 2015 through June 30, 2016. The member contribution rate is 6.25% of reportable compensation. Note 10: Postemployment Benefits Other than Pensions Annual OPEB Cost and Net OPEB Obligation 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. 44 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 10: Postemployment Benefits Other than Pensions (Continued) 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 ($112/month for calendar 2013 and $115/month for calendar 2014, increased in all future years according to the rate of medical inflation). The City pays a 0.36% 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, 2014, the City paid $7,972 in health care costs for its retirees and their covered dependents. 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 $ 79,497 Interest on net OPEB obligation 6,134 Adjustment to annual required contribution (15,242) Annual OPEB cost (expense) 70,389 Contributions made 7,972 Increase in net OPEB obligation 62,417 Net OPEB obligation - beginning of year 306,687 Net OPEB obligation - end of year $ 369,104 Three -Year Trend Information For fiscal year 2014, the City's annual OPEB cost (expense) $70,389 was equal to the ARC. 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: Fiscal Year Annual OPEB Actual Ended Costs Contributions 6/30/12 $ 74,774 $ 7,512 6/30/13 72,644 8,190 6/30/14 70,389 7,972 Funded Status and Funding Progress Percentage of Annual OPEB Costs Net OPEB Contributed Obligation 10.05% $ 242,233 11.27% 306,687 11.33% 369,104 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. 45 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 10: Postemployment Benefits Other than Pensions (Continued) 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 Actuarial Percent of Type of Valuation Value of Accrued Funded Covered Covered Interest Valuation Date Assets Liability Ratio Payroll Payroll Rate Actual 7/1/2008 $ - $ 402,007 0.0% $ 3,936,516 10.99% 5.00% Actual 7/1/2011 - 502,013 0.0% 3,959,573 12.68% 5.00% 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, 2011, actuarial valuation, the projected unit credit method was used. The actuarial assumptions included a discount rate of 7.5% per annum, inflation rate of 2.75% 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. 46 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2014 Note 11: Classification of Net Position and Fund Balance Details of the fund balance classifications at June 30, 2014, are as follows: Restricted for Community Development Projects: Integrated Waste Management $ 1,148,363 Park and Facility Development 25,717 CDBG 2 Total 1,174,082 Restricted for Public Safety: Park Improvements COPS 104,671 CLEEP 36,076 Total 140,747 Restricted for Public Works: 789,754 State Gas Tax 900,470 Proposition A Transit 302,470 Proposition C Transit 1,064,342 Traffic Improvement 742,829 Measure R Local Return 903,259 Transportation Grant 363 Waste Hauler 101,380 Total 4,015,113 Restricted for Capital Projects: Air Quality Improvement 135,914 Total 135,914 Restricted for Debt Service: 4 Total Restricted Funds $ 5,465,860 Note 12: 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 13: Construction Commitments The following material construction commitments existed at June 30, 2014: 47 Expenditures as of Remaining Project Name June 30, 2014 Commitments Park Improvements $ 127,101 $ 763,612 Street Improvements 69,985 2,290,072 Transportation Infrastructure 110,436 789,754 Traffic Management Improvements 34,071 375,929 Miscellaneous Improvements 101,490 955,802 $ 443.083 $ 5.175.169 47 THIS PAGE INTENTIONALLY LEFT BLANK 48 THIS PAGE INTENTIONALLY LEFT BLANK 49 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2014 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 Unearned revenues Due to other governments Due to other funds Accrued interest Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds State Gas Tax Proposition A Proposition C Transportation Z� izu,uio y 4yz),000 y 1,04J,Z)0z y ana 180,455 - 71,682 - .p 7VV,'F/V .p +zF.7,VVV .p 1, 11l,VV.* .p QV -1 $ - $ 190,261 $ 46,008 $ - 2,269 7,314 - 192,530 53,322 - 900,470 302,470 1,064,342 363 302,470 363 900,470 1,064,342 $ 900,470 $ 495,000 $ 1,117,664 $ 363 50 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2014 (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: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Accrued interest Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Special Revenue Funds Integrated Waste Traffic Air Quality Management Improvement Improvement Trails & Fund Fund Fund Bikeways Fund $ 1,033,218 $ 751,246 $ 118,981 $ - 146,705 - - - 14,926 - 18,073 - $ 1,194,849 $ 751,246 $ 137,054 $ - $ 37,979 $ - $ 1,140 $ - 8,507 - - - - 8,417 - - 46,486 8,417 1,140 - 1,148,363 - - - - 742,829 - - - 135,914 - 1,148,363 742,829 135,914 - $ 1,194,849 $ 751,246 $ 137,054 $ - 51 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2014 Special Revenue Funds Park and Facility Development Asset Seizure Fund CDBG Fund COPS Fund Fund Assets: Pooled cash and investments $ 25,717 $ - $ 104,671 $ - Receivables: Accounts - - - - Notes and loans - 362,009 - - Due from other governments 50,454 10,687 - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 76,171 $ 372,696 $ 104,671 $ - Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 4,115 $ - $ - Accrued liabilities - - - - Unearned revenues - - - - Due to other governments - 362,009 - - Due to other funds - 6,570 - - Accrued interest - - - - Total Liabilities - 372,694 - - Deferred Inflows of Resources: Unavailable revenues 50,454 - - - Total Deferred Inflows of Resources 50,454 - - - Fund Balances: Restricted for: Community development projects 25,717 2 - - Public safety - - 104,671 - Public works - - - - Capital Projects - - - - Debt service - - - - Unassigned - - - - Total Fund Balances 25,717 2 104,671 - Total Liabilities and Fund Balances $ 76,171 $ 372,696 $ 104,671 $ - 52 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2014 (CONTINUED) Special Revenue Funds Landscape Measure R Maintenance Local Return Waste Hauler CLEEP Fund District Fund Fund Fund 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 Unearned revenues Due to other governments Due to other funds Accrued interest Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances $ 36,076 $ 97,909 $ 903,259 $ 71,169 - - - 30,211 7,302 - - .p JV,V! V .P I V.7,L 1 1 .p .p IV I,JOV $ - $ 105,211 $ 105,211 - - 36,076 - - - - - 903,259 101,380 so,u 1 u - vus,zav -i u -i ,sau $ 36,076 $ 105,211 $ 903,259 $ 101,380 53 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2014 Liabilities and Fund Balances: Liabilities: Accounts payable Capital Debt Service Accrued liabilities - Projects Funds Funds - - 8,417 Capital Public Total Due to other funds Improvement Financing Governmental - Fund Authority Funds Assets: Deferred Inflows of Resources: Pooled cash and investments $ 70,436 $ - $ 5,474,042 Receivables: - 157,141 Fund Balances: Accounts - - 176,916 Notes and loans - - 362,009 Due from other governments 106,786 - 460,365 Restricted assets: Capital Projects - - 135,914 Cash and investments with fiscal agents - 4 4 Total Assets $ 177,222 $ 4 $ 6,473,336 Liabilities and Fund Balances: Liabilities: Accounts payable $ 159,174 $ - $ 543,888 Accrued liabilities - - 18,090 Unearned revenues - - 8,417 Due to other governments - - 362,009 Due to other funds - - 6,570 Accrued interest - - - Total Liabilities 159,174 - 938,974 Deferred Inflows of Resources: Unavailable revenues 106,687 - 157,141 Total Deferred Inflows of Resources 106,687 - 157,141 Fund Balances: Restricted for: Community development projects - - 1,174,082 Public safety - - 140,747 Public works - - 4,015,113 Capital Projects - - 135,914 Debt service - 4 4 Unassigned (88,639) - (88,639) Total Fund Balances (88,639) 4 5,377,221 Total Liabilities and Fund Balances $ 177,222 $ 4 $ 6,473,336 54 THIS PAGE INTENTIONALLY LEFT BLANK 55 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works 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 Fund Balances, End of Year Special Revenue Funds State Gas Tax Proposition A Proposition C Transportation 1,893,867 952,101 792,581 110,436 - 1,004,134 - - 3,050 6,932 9,486 - 1,896,917 1,963,167 802,067 110,436 800,000 - - 67,758 - - 1,447,353 762,098 - 10,000 - - 2,325,111 762,098 - 1,896,917 (361,944) 39,969 110,436 (1,665,697) (281,653) (110,436) (1,665,697) - (281,653) (110,436) 231,220 (361,944) (241,684) - 669,250 664,414 1,306,026 363 $ 900,470 $ 302,470 $ 1,064,342 $ 363 56 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works 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 Fund Balances, End of Year Special Revenue Funds Integrated Waste Traffic Air Quality Trails & Management Improvement Improvement Bikeways 46,153 - 69,510 - 512,656 - - - 7,420 4,045 934 - 566,229 4,045 70,444 - 348,231 - 86,832 - - - - 37,082 - 3,130 - - 24,028 - 13,285 - 372,259 3,130 100,117 37,082 193,970 915 (29,673) (37,082) - 500,000 - - (60,455) (225,000) - (32,000) (60,455) 275,000 - (32,000) 133,515 275,915 (29,673) (69,082) 1,014,848 466,914 165,587 69,082 $ 1,148,363 $ 742,829 $ 135,914 $ - 57 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 Special Revenue Funds Park and Facility Development Asset Seizure Fund CDBG Fund COPS Fund Fund Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 35,335 210,110 100,000 - Charges for services - - - - Use of money and property 146 896 383 Total Revenues 35,481 210,110 100,896 383 Expenditures: Current: General government - - - - Public safety - - 6,301 - Community development - 150,802 - - Parks and recreation - - - - Public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 150,802 6,301 - Excess (Deficiency) of Revenues Over (Under) Expenditures 35,481 59,308 94,595 383 Other Financing Sources (Uses): Transfers in 75,000 - - - Transfers out (85,266) (59,308) (84,057) (66,637) Total Other Financing Sources (Uses) (10,266) (59,308) (84,057) (66,637) Net Change in Fund Balances 25,215 - 10,538 (66,254) Fund Balances, Beginning of Year 502 2 94,133 66,254 Fund Balances, End of Year $ 25,717 $ 2 $ 104,671 $ - 58 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 (CONTINUED) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works 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 Fund Balances, End of Year Special Revenue Funds Landscape Measure R Maintenance Local Return Waste Hauler CLEEP Fund District Fund Fund Fund $ - $ 549,402 $ - $ - - - - 120,844 589,379 - 273 - 6,225 242 273 549,402 595,604 121,086 - 741,631 - 313 - - 313 741,631 - (40) (192,229) 595,604 121,086 - 194,945 - - (549,630) (19,706) 194,945 (549,630) (19,706) (40) 2,716 45,974 101,380 36,116 (2,716) 857,285 - $ 36,076 $ - $ 903,259 $ 101,380 59 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works 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 Fund Balances, End of Year Capital Projects Debt Service Capital Public Total Improvement Financing Governmental Fund Authority Funds $ - $ $ 549,402 - - 120,844 20,413 - 4,819,885 - - 1,516,790 - 7 40,039 20,413 7 7,046,960 - 1,500 801,500 - - 6,301 - - 585,865 - - 104,840 - - 2,954,212 1,928,800 - 1,976,426 - 350,000 350,000 - 492,159 492,159 1,928,800 843,659 7,271,303 (1,908,387) (843,652) (224,343) 1,817,018 843,653 3,430,616 - - (3,239,845) 1,817,018 843,653 190,771 (91,369) 1 (33,572) 2,730 3 5,410,793 $ (88,639) $ 4 $ 5,377,221 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE STATE GAS TAX FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 $ (165,736) $ (156,528) $ 900,470 $ 1,056,998 61 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 669,250 $ 669,250 $ 669,250 $ - 1,774,381 1,719,380 1,893,867 174,487 3,500 3,000 3,050 50 2,447,131 2,391,630 2,566,167 174,537 2,612,867 2,548,158 1,665,697 882,461 2,612,867 2,548,158 1,665,697 882,461 Budgetary Fund Balance, June 30 $ (165,736) $ (156,528) $ 900,470 $ 1,056,998 61 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION A TRANSIT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Charges for services Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Parks, recreation and culture Highways and Streets Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 62 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 664,414 $ 664,414 $ 664,414 $ - 950,088 950,088 952,101 2,013 1,200,000 1,200,000 1,004,134 (195,866) 3,500 6,500 6,932 432 2,818,002 2,821,002 2,627,581 (193,421) 400,000 800,000 800,000 - 81,300 83,700 67,758 15,942 1,670,324 1,670,324 1,447,353 222,971 12,500 12,500 10,000 2,500 2,164,124 2,566,524 2,325,111 241,413 $ 653,878 $ 254,478 $ 302,470 $ 47,992 62 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PROPOSITION C TRANSIT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Highways and Streets Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 63 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,306,026 $ 1,306,026 $ 1,306,026 $ - 788,073 788,073 792,581 4,508 8,500 10,000 9,486 (514) 2,102,599 2,104,099 2,108,093 3,994 712,782 776,225 762,098 14,127 985,800 1,082,304 281,653 800,651 1,698,582 1,858,529 1,043,751 814,778 $ 404,017 $ 245,570 $ 1,064,342 $ 818,772 63 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRANSPORTATION GRANT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 363 $ 363 $ 363 $ - 1,599,410 1,599,410 110,436 (1,488,974) 1,599,773 1,599,773 110,799 (1,488,974) 1,599,410 1,599,410 110,436 1,488,974 1,599,410 1,599,410 110,436 1,488,974 Budgetary Fund Balance, June 30 $ 363 $ 363 $ 363 $ - 64 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE INTEGRATED WASTE MANAGEMENT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Charges for services Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 65 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,014,848 $ 1,014,848 $ 1,014,848 $ - 20,000 20,000 46,153 26,153 475,000 475,000 512,656 37,656 3,000 6,000 7,420 1,420 1,512,848 1,515,848 1,581,077 65,229 460,425 489,578 348,231 141,347 - 25,000 24,028 972 60,681 60,681 60,455 226 521,106 575,259 432,714 142,545 $ 991,742 $ 940,589 $ 1,148,363 $ 207,774 65 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAFFIC IMPROVEMENT FUND YEAR ENDED JUNE 30, 2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 466,914 $ 466,914 $ 466,914 $ - Resources (Inflows): Use of money and property 1,000 3,500 4,045 545 Transfers in - 500,000 500,000 - Amounts Available for Appropriations 467,914 970,414 970,959 545 Charges to Appropriation (Outflow): Highways and streets 8,995 143,143 3,130 140,013 Transfers out 225,000 225,000 225,000 - Total Charges to Appropriations 233,995 368,143 228,130 140,013 Budgetary Fund Balance, June 30 $ 233,919 $ 602,271 $ 742,829 $ 140,558 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 67 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 165,587 $ 165,587 $ 165,587 $ - 65,000 65,000 69,510 4,510 750 750 934 184 231,337 231,337 236,031 4,694 55,850 90,850 86,832 4,018 15,000 15,000 13,285 1,715 70,850 105,850 100,117 5,733 $ 160,487 $ 125,487 $ 135,914 $ 10,427 67 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE TRAILS & BIKEWAYS FUND YEAR ENDED JUNE 30, 2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 69,082 $ 69,082 $ 69,082 $ - Resources (Inflows): Intergovernmental 35,414 35,414 - (35,414) Amounts Available for Appropriations 104,496 104,496 69,082 (35,414) Charges to Appropriation (Outflow): Parks and recreation - - 37,082 (37,082) Transfers out - 32,000 32,000 - Total Charges to Appropriations - 32,000 69,082 (37,082) Budgetary Fund Balance, June 30 $ 104,496 $ 72,496 $ - $ (72,496) CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PARK AND FACILITY DEVELOPMENT FUND YEAR ENDED JUNE 30, 2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 502 $ 502 $ 502 $ - Resources (Inflows): Intergovernmental 120,340 115,340 35,335 (80,005) Use of money and property - - 146 146 Transfers in 75,000 75,000 75,000 - Amounts Available for Appropriations 195,842 190,842 110,983 (79,859) Charges to Appropriation (Outflow): Transfers out 143,217 493,094 85,266 407,828 Total Charges to Appropriations 143,217 493,094 85,266 407,828 Budgetary Fund Balance, June 30 $ 52,625 $ (302,252) $ 25,717 $ 327,969 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG FUND) YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Community development Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2 $ 2 $ 2 $ 301,190 408,190 210,110 (198,080) 301,192 408,192 210,112 (198,080) 180,796 220,796 150,802 69,994 120,396 187,396 59,308 128,088 301,192 408,192 210,110 198,082 Budgetary Fund Balance, June 30 $ - $ - $ 2 $ 2 70 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with 71 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 94,133 $ 94,133 $ 94,133 $ - 100,000 100,000 100,000 - 500 500 896 396 194,633 194,633 195,029 396 5,000 5,000 6,301 (1,301) 5,000 5,000 - 5,000 107,322 107,322 84,057 23,265 117,322 117,322 90,358 26,964 $ 77,311 $ 77,311 $ 104,671 $ 27,360 71 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE ASSET SEIZURE FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 66,254 $ 66,254 $ 66,254 $ 500 500 383 (117) 66,754 66,754 66,637 (117) 65,863 66,754 66,637 117 65,863 66,754 66,637 117 Budgetary Fund Balance, June 30 $ 891 $ - $ - $ - 72 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM (CLEEP) FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 36,116 $ 36,116 $ 36,116 $ 200 200 273 36,316 36,316 36,389 73 73 10,000 10,000 313 9,687 10,000 10,000 313 9,687 $ 26,316 $ 26,316 $ 36,076 $ 9,760 73 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE LANDSCAPE MAINTENANCE DISTRICT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): 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) $ (2,716) $ (2,716) $ (2,716) $ 559,674 553,032 549,402 (3,630) 130,835 216,188 194,945 (21,243) 687,793 766,504 741,631 (24,873) 690,509 781,227 741,631 39,596 - 9,721 - 9,721 690,509 790,948 741,631 49,317 $ (2,716) $ (24,444) $ - $ 24,444 74 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MEASURE R LOCAL RETURN FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 857,285 $ 857,285 $ 857,285 $ - 591,053 591,053 589,379 (1,674) 3,500 6,500 6,225 (275) 1,451,838 1,454,838 1,452,889 (1,949) 1,279,190 1,401,770 549,630 852,140 1,279,190 1,401,770 549,630 852,140 Budgetary Fund Balance, June 30 $ 172,648 $ 53,068 $ 903,259 $ 850,191 75 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE WASTE HAULER FUND YEAR ENDED JUNE 30, 2014 76 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts(Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Licenses and permits 120,844 120,844 120,844 - Use of money and property - - 242 242 Amounts Available for Appropriations 120,844 120,844 121,086 242 Charges to Appropriation (Outflow): Transfers out 120,844 120,844 19,706 101,138 Total Charges to Appropriations 120,844 120,844 19,706 101,138 Budgetary Fund Balance, June 30 $ - $ - $ 101,380 $ 101,380 76 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Intergovernmental Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,730 $ 2,730 $ 2,730 $ - 205,648 295,278 20,413 (274,865) 6,095,446 6,975,462 1,817,018 (5,158,444) 6,303,824 7,273,470 1,840,161 (5,433,309) 6,301,094 7,324,153 1,928,800 5,395,353 6,301,094 7,324,153 1,928,800 5,395,353 Budgetary Fund Balance, June 30 $ 2,730 $ (50,683) $ (88,639) $ (37,956) 77 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2014 Budgetary Fund Balance, July 1 Resources (Inflows): Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): General government 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) $ 3 $ 3 $ 3 $ - 7 7 842,406 843,906 843,653 (253) 842,409 843,909 843,663 (246) - 1,500 1,500 - 350,000 350,000 350,000 - 492,406 492,406 492,159 247 842,406 843,906 843,659 247 $ 3 $ 3 $ 4 $ 1 78 CITY OF DIAMOND BAR COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2014 Assets: Current: Cash and investments Receivables: Accounts Prepaid costs Total Current Assets Noncurrent: Capital assets - net of accumulated depreciation Total Noncurrent Assets Total Assets Liabilities and Net Position: Liabilities: Current: Accounts payable Total Liabilities Net Position: Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Governmental Activities - Internal Service Funds Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacemen Maintenance Totals $ 1,000,000 $ 383,466 $ 211,395 $ 117,977 $ 1,712,838 - - - 1,157 1,157 1,373 - - - 1,373 1,001,373 383,466 211,395 119,134 1,715,368 - 64,460 474,606 - 539,066 - 64,460 474,606 - 539,066 $ 1,001,373 $ 447,926 $ 686,001 $ 119,134 $ 2,254,434 $ 16,945 $ - $ 16,945 16,945 - 16,945 - 64,460 474,606 - 539,066 1,001,373 383,466 194,450 119,134 1,698,423 1,001,373 447,926 669,056 119,134 2,237,489 $ 1,001,373 $ 447,926 $ 686,001 $ 119,134 $ 2,254,434 79 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2014 Governmental Activities - Internal Service Funds Operating Revenues: Sales and service charges Total Operating Revenues Operating Expenses: Insurance Premiums Equipment repair and maintenance Depreciation expense Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Interest revenue Total Nonoperating Revenues(Expenses) Income (Loss) Before Transfers Transfers in Changes in Net Position Net Position: Beginning of Year End of Fiscal Year Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacemen Maintenance Totals - $ - $ - $ - $ 9,950 $ 9,950 9,950 9,950 344,325 - - - 344,325 - - 184,874 - 184,874 - 10,044 44,039 - 54,083 344,325 10,044 228,913 - 583,282 (344,325) (10,044) (228,913) 9,950 (573,332) 6,357 1,738 288 188 8,571 6,357 1,738 288 188 8,571 (337,968) (8,306) (228,625) 10,138 (564,761) 174,365 210,000 481,193 100,000 965,558 (163,603) 201,694 252,568 110,138 400,797 1,164,976 246,232 416,488 8,996 1,836,692 $ 1,001,373 $ 447,926 $ 669,056 $ 119,134 $ 2,237,489 CITY OF DIAMOND BAR COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2014 Governmental Activities - Internal Service Funds Computer Building Self Equipment Equipment Facility & Insurance Replacement Replacement Maintenance Fund Fund Fund Fund Totals Cash Flows from Operating Activities: Insurance Premiums (paid)/refund received $ (432,923) $ Payments to suppliers - Cash received from (payments to) others 13,483 Net Cash Provided (Used) by Operating Activities (419,440) Cash Flows from Non -Capital Financing Activities: Cash transfers in 174,365 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 accounts receivable Increase (decrease) in accounts payable Increase (decrease) in retrospective deposit payable Total Adjustments Net Cash Provided (Used) by Operating Activities $ - $ $ (432,923) (204,715) (204,715) 10,940 24,423 (204,715) 10,940 (613,215) 210,000 481,193 100,000 965,558 174,365 210,000 481,193 100,000 965,558 (46,688) (196,319) - (243,007) (46,688) (196,319) - (243,007) 6,357 1,738 288 188 8,571 6,357 1,738 288 188 8,571 (238,718) 165,050 80,447 111,128 117,907 1,238,718 218,416 130,948 6,849 1,594,931 $ 1,000,000 $ 383,466 $ 211,395 $ 117,977 $ 1,712,838 $ (344,325) $ (10,044) $ (228,913) $ 9,950 $ (573,332) - 10,044 44,039 - 54,083 13,483 - - 990 14,473 - - (19,841) - (19,841) (88,598) - - - (88,598) (75,115) 10,044 24,198 990 (39,883) $ (419,440) $ - $ (204,715) $ 10,940 $ (613,215) 81 THIS PAGE INTENTIONALLY LEFT BLANK W" DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2014 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. 12-13 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. 14-16 83 City of Diamond Bar Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, 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. 84 2005 2006 2007 2008 2009 Governmental activities: Net investment in capital assets $ 10,692,694 $ 14,593,935 $ 375,216,400 $ 370,949,296 $ 367,529,907 Restricted for: Capital projects 3,775,552 3,323,474 3,446,872 2,912,276 3,526,991 Community development 1,398,057 1,296,806 1,013,495 889,176 568,280 Public safety 541,482 Public works Debt service 245,763 243,697 321,747 309,533 305,915 Unrestricted 29,775,169 29,461,178 34,072,884 36,236,504 34,554,084 Total governmental activities net position $45,887,235 $48,919,090 $ 414,071,398 $ 411,296,785 $ 407,026,659 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. 84 Schedule 1 2010 2011 2012 2013 2014 $ 377,940,738 $ 381,985,940 $ 382,660,310 $ 378,511,311 $ 372,068,596 2,260,872 146,567 163,603 165,587 135,914 725,667 1,644,861 958,293 1,084,434 1,174,082 559,920 453,730 285,508 196,503 140,747 3,636,487 3,504,339 3,964,252 4,015,113 319,815 333,694 2 3 4 34,215,610 22,582,318 18,288,491 18,508,423 20,894,700 $ 416,022,622 $ 410,783,597 $ 405,860,546 $ 402,430,513 $ 398,429,156 85 City of Diamond Bar Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) General revenues: Fiscal Year Ended June 30, 2005 2006 2007 2008 2009 Expenses: Property taxes 3,191,006 3,555,244 3,754,955 Governmental activities: 4,001,276 Transient occupancy taxes 717,879 718,889 774,757 General government $ 3,997,319 $ 4,203,123 $ 4,784,314 $ 4,473,666 $ 5,159,300 Public safety 4,969,183 5,418,005 4,876,435 4,944,729 5,396,083 Highways and streets 4,622,014 5,240,568 14,019,550 12,034,669 13,931,211 Community development 1,050,025 2,759,718 2,292,757 2,251,196 1,959,303 Parks, recreation and culture 3,814,887 3,737,071 4,779,588 5,188,977 4,950,687 Interest on long-term debt 270,735 423,320 498,042 392,548 177,633 Total general expenses 18,724,163 21,781,805 31,250,686 29,285,785 31,574,217 Program revenues: Total general revenues 14,366,975 14,713,077 15,742,787 Governmental activities: 14,837,226 Change in net position 3,813,399 3,031,855 (609,142) Charges for services (4,270,126) Net position at beginning of year 42,318,401 45,887,235 414,680,540 General Government 486,925 707,272 262,541 225,553 132,262 Public safety 1,159,264 1,277,170 1,512,195 1,176,931 1,017,336 Highways and streets 1,328,637 1,555,993 3,493,798 2,851,187 1,732,985 Community development 7,888 16,841 21,297 23,351 17,602 Parks, recreation and culture 1,147,088 1,260,849 1,385,788 1,581,597 1,705,282 Operating grants and contributions 4,040,785 5,281,308 6,968,824 4,307,074 5,588,818 Capital grants and contributions 1,150 1,254,314 219,193 2,272,580 Total governmental activities program revenues 8,170,587 10,100,583 14,898,757 10,384,886 12,466,865 General revenues: Taxes Property taxes 3,191,006 3,555,244 3,754,955 3,927,073 4,001,276 Transient occupancy taxes 717,879 718,889 774,757 800,390 633,075 Sales taxes 3,508,341 3,949,349 3,943,345 4,102,177 3,085,223 Franchise taxes 941,319 996,567 1,064,621 1,024,710 1,093,039 Othertaxes 413,247 416,423 331,096 283,433 199,365 Unrestricted Motor vehicle in lieu 4,386,800 3,663,061 4,356,641 4,563,127 4,687,515 Use of money and property 532,091 1,051,922 1,476,010 1,420,988 833,270 Other revenues 676,292 361,622 41,362 4,388 304,463 Loss on disposal of capital asset Total general revenues 14,366,975 14,713,077 15,742,787 16,126,286 14,837,226 Change in net position 3,813,399 3,031,855 (609,142) (2,774,613) (4,270,126) Net position at beginning of year 42,318,401 45,887,235 414,680,540 414,071,398 411,296,785 Restatement of net position Net position at end of year $46,131,800 $48,919,090 $414,071,398 $411,296,785 $407,026,659 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 0 Schedule 2 2010 2011 2012 2013 2014 $ 4,973,685 $ 6,370,986 $ 6,384,072 $ 6,942,983 $ 7,301,502 5,526,099 5,591,049 6,104,982 5,831,227 5,627,026 12,287,325 10,619,860 11,248,137 10,197,098 10,599,386 1,624,547 1,969,540 2,126,906 1,980,646 2,346,073 5,091,215 5,153,264 5,559,427 5,591,917 6,463,192 57,948 72,592 848,976 487,369 477,201 29,560,819 29,777,291 32,272,500 31,031,240 32,814,380 131,633 118,016 247,248 160,379 770,908 1,014,237 996,409 1,050,851 1,167,012 1,424,984 2,070,167 2,400,272 2,555,900 2,604,053 2,671,741 21,106 517,515 447,951 532,742 547,118 1,754,789 1,829,409 1,753,585 1,689,497 1,804,189 4,358,895 3,685,378 4,992,856 4,024,537 4,203,990 15,960,279 40,779 1,242,636 690,732 207,971 25,311,106 9,587,778 12,291,027 10,868,952 11,630,901 3,837,288 4,187,896 3,951,722 4,080,273 4,307,077 569,916 642,509 692,162 782,952 851,249 3,122,229 3,355,127 3,397,259 3,546,239 3,658,327 1,115,980 1,259,471 1,415,924 1,465,666 1,393,584 259,384 172,687 202,951 333,250 471,455 4,599,922 4,766,225 4,646,985 4,659,994 4,862,100 618,963 474,598 145,408 6,307 256,758 7,090 91,975 46,342 533,475 52,891 -21,057 1,328,681 14,130,772 14,950,488 14,498,753 15,387,099 17,182,122 9,881,059 (5,239,025) (5,482,720) (4,775,189) (4,001,357) 407,026,659 416,022,622 410,783,597 405,860,546 402,430,513 669 1.345.156 $ 416,022,622 $ 410,783,597 $ 405,860,546 $ 402,430,513 $ 398,429,156 87 THIS PAGE INTENTIONALLY LEFT BLANK 0 City of Diamond Bar Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Schedule 3 All other governmental funds Reserved 5,555,988 2,274,829 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: Fiscal Year Ended June 30, Special revenue funds 6,111,202 5,485,933 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund 2005 2006 2007 2008 2009 2010 General fund: 17,536,716 19,762,450 333,694 2 3 4 Reserved $ 1,125,918 $ 1,310,172 $ 1,893,287 $ 1,864,387 $ 1,612,181 $ 1,955,477 Unreserved 24,809,721 25,103,444 28,568,263 31,065,127 30,041,357 28,841,621 Total general fund 25,935,639 26,413,616 30,461,550 32,929,514 31,653,538 30,797,098 All other governmental funds Reserved 5,555,988 2,274,829 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: 4,500,000 Special revenue funds 6,111,202 5,485,933 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund 274,426 Capital projects funds (5,443,309) (2,612,373) (4,681,728) (5,703,854) (2,701,642) (2,020,782) Total all other governmental funds Total fund balances General fund: Nonspendable: Prepaid costs Committed to: Emergency contingencies Unassigned Total general fund All other governmental funds: Nonspendable: Prepaid costs Restricted for: Comm development projects Public safety Highways and streets Capital Projects Debt service Assigned to: Capital Projects Unassigned Total all other governmental funds Total fund balances 6,498,307 5,148,389 4,366,089 5,061,948 5,476,863 4,932,937 $ 32,433,946 $ 31,562,005 $ 34,827,639 $ 37,991,462 $ 37,130,401 $ 35,730,035 2011 2012 2013 2014 $ 41,451 $ 28,114 $ 26,331 $ 62,752 4,500,000 4,500,000 4,500,000 4,500,000 16,726,964 12,616,200 13,010,385 15,199,698 3,271,595 3,170,407 3,964,252 4,015,113 21,268,415 17,144,314 17,536,716 19,762,450 750 1,644,861 958,293 1,084,434 1,174,082 453,730 285,508 196,503 140,747 3,271,595 3,170,407 3,964,252 4,015,113 146,567 164,867 165,587 135,914 333,694 2 3 4 2,730 (3,466) (88,639) 5,850,447 4,579,077 5,410,793 5,377,221 $ 27,118,862 $ 21,723,391 $ 22,947,509 $ 25,139,671 Note: The City implemented GASB 54, titled "Fund Balance Reporting and Governmental Fund Type Definitions" as of the fiscal year ended June 30, 2011. Source: City Finance Department City of Diamond Bar Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Bond issued or refinancing Bonds discount or premium Transfers in Transfers out Proceeds from sale of capital asset Total other financing sources (uses) Net changes in fund balances Debt service as a percentage of noncapital expenditures Source: City Finance Department 3,110,836 (320,483) 3,623,703 3,184,676 (450,461) 2,363,367 6,469,523 6,030,764 7,266,149 6,629,225 (2,600,654) (6,733,961) (6,354,106) (7,608,749) (7,039,825) (237,287) (264,438) (323,342) (342,600) (410,600) $ 2,873,549 $ (584,921) $ 3,300,361 $ 2,842,076 $ (861,061) 1.38% a 3.18% 2.91% 2.89% 1.77% Fiscal Year Ended June 30, 2005 2006 2007 2008 2009 Revenues: Taxes $ 8,632,837 $ 9,508,757 $ 9,876,760 $ 10,165,881 $ 9,119,375 Special assessments 593,778 504,908 541,382 543,561 550,822 Intergovernmental 8,306,557 8,821,141 11,169,052 9,896,948 12,081,466 Charges for services 761,040 870,314 1,002,210 1,111,655 1,460,828 Fines and forfeitures 713,201 589,922 546,902 637,484 601,533 Licenses and permits 1,732,555 2,389,149 4,247,626 3,121,476 1,445,324 Investment income 654,066 1,250,570 1,716,194 1,629,257 938,053 Other 480,740 792,216 767,457 826,177 1,018,956 Total revenues 21,874,774 24,726,977 29,867,583 27,932,439 27,216,357 Expenditures: Current: General government 3,787,005 3,551,659 4,402,235 3,987,656 5,071,860 Public safety 4,954,630 5,404,259 4,880,290 4,933,958 5,407,476 Public works 4,301,146 4,769,497 5,114,274 4,926,418 5,607,870 Parks, recreation and culture 2,750,815 2,613,834 3,475,549 3,714,762 3,673,282 Community development 1,050,025 2,748,539 2,292,757 2,246,496 1,945,951 Capital outlay 1,682,830 5,320,597 5,344,935 4,271,890 5,508,167 Debt service: Principal retirement 235,000 240,000 255,000 265,000 Interest and fiscal charges 237,487 404,075 493,840 411,583 187,212 Total expenditures 18,763,938 25,047,460 26,243,880 24,747,763 27,666,818 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Bond issued or refinancing Bonds discount or premium Transfers in Transfers out Proceeds from sale of capital asset Total other financing sources (uses) Net changes in fund balances Debt service as a percentage of noncapital expenditures Source: City Finance Department 3,110,836 (320,483) 3,623,703 3,184,676 (450,461) 2,363,367 6,469,523 6,030,764 7,266,149 6,629,225 (2,600,654) (6,733,961) (6,354,106) (7,608,749) (7,039,825) (237,287) (264,438) (323,342) (342,600) (410,600) $ 2,873,549 $ (584,921) $ 3,300,361 $ 2,842,076 $ (861,061) 1.38% a 3.18% 2.91% 2.89% 1.77% Schedule 4 2010 2011 2012 2013 2014 $ 8,591,893 $ 9,646,883 $ 9,664,801 $ 10,200,419 $ 10,638,609 556,989 556,562 547,209 550,609 549,402 11,478,456 9,441,959 11,053,326 10,427,352 10,281,985 3,191,416 3,390,367 3,190,675 3,238,165 3,321,883 607,936 567,575 509,166 522,142 582,844 640,287 818,913 1,127,569 1,238,626 1,542,765 648,503 499,377 183,507 30,116 281,752 30,766 113,578 54,634 551,710 85,558 25,746,246 25,035,214 26,330,887 26,759,139 27,284,798 4,435,858 4,977,021 5,485,001 4,214,834 5,115,321 5,524,279 5,580,507 5,731,595 5,678,614 5,602,021 5,183,964 5,002,456 6,609,087 5,263,046 5,698,765 3,655,029 3,712,194 4,090,551 4,050,161 4,406,954 1,604,220 1,960,125 2,114,433 2,010,040 2,225,647 5,161,924 11,480,595 6,702,615 3,031,168 2,518,617 280,000 290,000 12,510,000 335,000 350,000 33,904 37,461 406,626 502,291 492,159 25,879,178 33,040,359 43,649,908 25,085,154 26,409,484 (132,932) (8,005,145) (17,319,021) 1,673,985 875,314 11,790,000 252,381 4,379,718 2,929,528 6,085,337 5,195,892 4,856,728 (4,795,374) (3,535,556) (6,494,449) (5,690,201) (5,822,286) 2,282,406 (415,656) (606,028) 11,633,269 (494,309) 1,316,848 $ (548,588) $ (8,611,173) $ (5,685,752) $ 1,179,676 $ 2,192,162 1.35% 1.45% 35.00% 3.49% 3.35% 91 THIS PAGE INTENTIONALLY LEFT BLANK W" City of Diamond Bar Schedule 5 Assessed and Estimated Actual Values of Taxable Property 2004/05 - 2013/14 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 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% 2011-12 7,347,032,537 77,283,606 0 74,296,191 7,350,019,952 0.05268 2.17% 2012-13 7,471,528,800 76,724,231 0 78,856,697 7,469,396,334 0.05267 1.62% 2013-14 7,765,883,788 69,544,511 0 83,574,453 7,751,853,846 0.05264 3.78% Net Assessed Value $9,000,000,000 $8,000,000,000 $7,000,000,000 $6,000,000,000 $5,000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 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. 93 City of Diamond Bar Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Value) Agency 2004/05 2005/06 2006/07 2007/08 2008/09 Basic Levy* 1.00000 1.00000 1.00000 1.00000 1.00000 County Detention Facilities 1987 Debt 0.00092 0.00080 0.00066 0.00000 0.00000 LA County Flood Control 0.00025 0.00005 0.00005 0.00000 0.00000 Metropolitan Water District 0.00580 0.00520 0.00470 0.00450 0.00430 Mt. San Antonio College 0.01473 0.02122 0.02530 0.01750 0.02333 Pomona Unified School Dist 0.12910 0.12488 0.12401 0.11379 0.11577 Rowland Heights Unified 0.03885 0.03633 0.07429 0.06944 0.07029 Walnut Valley Unified School Dist 0.09515 0.09140 0.08749 0.08462 0.11297 Total Direct & Overlapping Tax Rates 1.2848 1.2799 1.3165 1.2899 1.3267 City's Share of 1% Levy Per Prop 13* 0.05192 0.05192 0.05192 0.05192 0.05192 General Obligation Debt Rate Redevelopment Rate* Total Direct Rate* 0.05313 0.05288 0.05280 0.05485 0.05270 * 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 incremental property values. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. Source: Hdl Coren & Cone 94 Schedule 6 2009/10 2010/11 2011/12 2012/13 2013/14 1.00000 1.00000 1.00000 1.00000 1.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00430 0.00370 0.00370 0.00350 0.00350 0.02571 0.02636 0.02642 0.02896 0.02023 0.14546 0.17721 0.17364 0.18488 0.16407 0.06769 0.07538 0.09195 0.10053 0.12297 0.11674 0.11839 0.11735 0.12554 0.11342 1.3599 1.4010 1.4131 1.4434 1.4242 0.05192 0.05192 0.05192 0.05192 0.05192 0.05274 0.05270 0.05268 0.05267 0.05264 95 Top Ten Total City Total Taxpayers Nine Years Ago Opus Real Estate California IV LP Gem Gateway Limited Country Hills DB LLC Muller Gateway LLC Pacifica Trenton Center Hampton Apartments Ari Diamond Bar Margaret M. Tam Trust Emerald Pointe Apartments LLC H R Barros Family Ltd Top Ten Total City Total Source: Hdl Coren & Cone. ., $ 269,396,050 $ 7,751,853,846 2004-05 Assessed Valuation $ 28,864,519 25,515,268 21,118,272 19,100,061 18,810,650 17,748,200 15,914,689 15,611,248 15,171,930 14,775,372 $ 192,630,209 $ 5,446,817,363 3.48% Percentage of Total Net Assessed Valuation 0.53% 0.47% 0.39% 0.35% 0.35% 0.33% 0.29% 0.29% 0.28% 0.27% 3.55% City of Diamond Bar Schedule 7 Top 10 Property Taxpayers Current Year and Nine Years Ago 2013-14 Percentage of Total Current Taxpayers Assessed Valuation Net Assessed Valuation Diamond Bar Gateway Corp Inc $ 40,000,000 0.52% SRGMF South Grand Diamond Bar 39,653,361 0.51% Roic California LLC 31,856,200 0.41% Pacifica Trenton Holdings -2 LLC 30,100,000 0.39% Target Corporation 26,650,578 0.34% Muller Rock 2 Gateway 26,136,302 0.34% Hua Qing Enterprice LLC 22,392,214 0.29% Margaret M. Tam Trust ETAL 18,021,782 0.23% Emerald Pointe Apartments LLC 17,526,129 0.23% Roic DBTC LLC 17,059,484 0.22% Top Ten Total City Total Taxpayers Nine Years Ago Opus Real Estate California IV LP Gem Gateway Limited Country Hills DB LLC Muller Gateway LLC Pacifica Trenton Center Hampton Apartments Ari Diamond Bar Margaret M. Tam Trust Emerald Pointe Apartments LLC H R Barros Family Ltd Top Ten Total City Total Source: Hdl Coren & Cone. ., $ 269,396,050 $ 7,751,853,846 2004-05 Assessed Valuation $ 28,864,519 25,515,268 21,118,272 19,100,061 18,810,650 17,748,200 15,914,689 15,611,248 15,171,930 14,775,372 $ 192,630,209 $ 5,446,817,363 3.48% Percentage of Total Net Assessed Valuation 0.53% 0.47% 0.39% 0.35% 0.35% 0.33% 0.29% 0.29% 0.28% 0.27% 3.55% City of Diamond Bar Schedule 8 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 2005 $ 2,844,211 $ 2,713,312 95.40% $ 130,899 4.60% 2006 3,068,292 2,761,804 90.01% 306,489 9.99% 2007 3,351,647 3,090,289 92.20% 261,359 7.80% 2008 3,598,889 3,276,908 91.05% 321,981 8.95% 2009 3,760,371 3,436,585 91.39% 323,786 8.61% 2010 3,704,133 3,412,996 92.14% 291,137 7.86% 2011 3,750,806 3,505,792 93.47% 245,015 6.53% 2012 3,844,101 3,506,696 91.22% 337,405 8.78% 2013 3,908,533 3,778,461 96.67% 130,072 3.33% 2014 4,075,791 3,960,684 97.18% 115,107 2.82% Source: Los Angeles County Auditor/Controller. City Finance Department 97 Fiscal Year Ended June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 City of Diamond Bar Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Lease Revenue Bonds (a) $ 13,655,000 13, 520, 000 13,280,000 13,025,000 12,760,000 12,480,000 12,190,000 11,470,000 11,135,000 10,785,000 Other Total Total Bond & Governmental Primary Loans Activities Government 0 $ 13,655,000 $ 13,655,000 0 13, 520, 000 13, 520, 000 0 13, 280, 000 13, 280, 000 0 13, 025, 000 13, 025, 000 0 12,760,000 12,760,000 0 12,480,000 12,480,000 0 12,190,000 12,190,000 0 11,470,000 11,470,000 0 11,135, 000 11,135, 000 0 10,785,000 10,785,000 Schedule 9 % of Debt Personal Per Income (b) Capita (b) 0.79% 229 0.74% 227 0.70% 223 0.68% 217 0.68% 212 0.64% 225 0.66% 218 0.62% 205 0.56% 198 0.54% 191 Note: (a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements. (b) Details regarding the City's population and personal income can be found in the Demographic and Economic Statistics Table. Source: City Finance Department City of Diamond Bar Direct and Overlapping Debt June 30, 2014 (unaudited) Gross Bonded Debt Balance % Applicable To City (1) Schedule 10 Net Bonded Debt Direct Debt as of June 30, 2014 Diamond Bar Lease Revenue Bond $ 10,785,000 100.000 $ 10,785,000 Overlapping Debts as of June 30, 2014 (2) 330.10 Metropolitan Water District 64,271,492 0.839 539,261 809.51 Mt San Antonio CCD 2001 Series 2004B 2,150,000 10.848 233,227 809.53 Mt San Antonio CCD 2001 Series C 2006 2,940,000 10.848 318,925 809.54 Mt San Antonio CCD DS 2001, 2008 Series D 22,378,676 10.848 2,427,590 809.56 Mt San Antonio CCD DS 2008 Series 13A 205,586,691 10.848 22,301,700 809.57 Mt San Antonio CCD DS 2008 Series 2013B 11,715,000 10.848 1,270,824 809.58 Mt San Antonio CCD DS 2013 Series A 74,910,000 10.848 8,126,111 809.59 Mt San Antonio CCD DS 2013 Series B 48,190,000 10.848 5,227,570 915.62 Pomona Unified School District 2000 Ser A 15,430,000 20.151 3,109,317 915.64 Pomona Unified SD Refunding 2001 Ser A 15,230,000 20.151 3,069,015 915.68 Pomona Unified School District 2002 Ser D 11,640,000 20.151 2,345,590 915.69 Pomona Unified School District 2002 Ser E 11,240,000 20.151 2,264,985 915.70 Pomona Unified School DS 2007 & 2012 Ref Bds 7,984,428 20.151 1,608,951 915.71 Pomona Unified School District 2008 Series A 32,170,000 20.151 6,482,613 915.72 Pomona USD DS 2008 Series B 42,740,000 20.151 8,612,586 915.73 Pomona USD 2008 Series C 14,000,000 20.151 2,821,156 915.74 Pomona USD DS 2012 Refunding Bond Series A 20,005,000 20.151 4,031,230 915.75 Pomona USD DS 2012 Refunding Bond Series B 28,165,000 20.151 5,675,561 915.76 Pomona USD DS 2008 Series D QSCBS 24,725,000 20.151 4,982,363 980.60 Walnut Valley Unified USD DS 2000 Series E 11,830,243 59.114 6,993,322 980.61 Walnut Valley Unified SD 2005 Ref Bond 9,755,000 59.114 5,766,564 980.62 Walnut Valley Unified SD 2007 Series A (Measure S 6,001,837 59.114 3,547,922 980.63 Walnut Valley Unified SD 2007 Series A (Measure Y 27,480,000 59.114 16,244,508 980.64 Walnut Valley Unified SD 2011 Refunding 12,655,000 59.114 7,480,868 980.65 Walnut Valley USD 2007 Series B (Measure S) 6,410,887 59.114 3,789,727 980.66 Walnut Valley USD 2007 Series B (Measure Y) 27,846,553 59.114 16,461,192 980.66 Walnut Valley USD 2012 Ref Bonds 15,915,000 59.114 9,407,980 Total Overlapping Debts: 773,365,807 155,140,658 Grand Total Direct and Overlapping Debt: $ 784,150,807 $ 165,925,658 Debt to Assessed Valuation Ratios as of June 30, 2014: 2013/14 Net Assessed Valuation: $ 7,751,853,846 Direct Debt 0.14% $191 2013 Total City Population: 56,400 Overlapping Debt 2.00% $2,751 Total Debt 2.14% $2,942 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 Schedule 11 City of Diamond Bar Computation of Legal Debt Margin Last Ten Fiscal Years (unaudited) Fiscal Year 2005 2006 2007 2008 2009 Net assessed value $ 5,446,817,363 $ 5,874,950,276 $ 6,421,927,342 $ 6,894,023,460 $ 7,201,620,222 Add back: Exemptions 39,831,091 51,408,286 28,682,577 39,859,238 48,909,164 Gross assessed value 5,486,648,454 5,926,358,562 6,450,609,919 6,933,882,698 7,250,529,386 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,371,662,114 1,481,589,641 1,612,652,480 1,733,470,675 1,812,632,347 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 205,749,317 222,238,446 241,897,872 260,020,601 271,894,852 City Debts: Revenue bonds 13,755,000 13,520,000 13,280,000 13,025,000 12,760,000 Legal debt margin $ 191,994,317 $ 208,718,446 $ 228,617,872 $ 246,995,601 $ 259,134,852 Fiscal Year 2010 2011 2012 2013 2014 Net assessed value $ 7,095,299,195 $ 7,193,712,566 $ 7,350,019,952 $ 7,469,396,334 $ 7,751,853,846 Add back: Exemptions 66,422,679 70,706,628 74,296,191 78,856,697 83,574,453 Gross assessed value 7,161,721,874 7,264,419,194 7,424,316,143 7,548,253,031 7,835,428,299 Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,790,430,469 1,816,104,799 1,856,079,036 1,887,063,258 1,958,857,075 Debt limit percentage 15% 15% 15% 15% 15% Debt limit 268,564,570 272,415,720 278,411,855 283,059,489 293,828,561 City Debts: Revenue bonds 12,480,000 12,190,000 11,470,000 11,135,000 10,785,000 Legal debt margin $ 256,084,570 $ 260,225,720 $ 266,941,855 $ 271,924,489 $ 283,043,561 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 govern- ment located within the state. Source: Section 43605 of the California Government Code Hdl Coren & Cone City Finance Department 100 City of Diamond Bar Demographic and Economic Statistics General Information Date of Incorporation April 18, 1989 Form of Government Council -Manager Area 15 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 Full Value Sales 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 Demoaraahic and Statistical Information (Last Ten Calendar Years Sinale Familv Residential Full Value Sales (01/01/2012-07/31/2014 Schedule 12 Year Full Value Sales Personal Per Capita 2012 789 Pop 25+ Pop 25+ Calendar 813 Income Personal Unemployment Median High School Bachelor Year Population (In Thousands) Income Rate Age Degree Degree 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% 39.2 93.1% 46.7% 2010 55,766 1,960,418 35,154 9.10% 39.8 92.0% 47.6% 2011 55,819 1,846,158 33,074 8.80% 40.5 92.5% 47.8% 2012 56,099 1,991,290 35,496 6.60% 40.6 92.6% 48.8% 2013 56,400 1,984,772 35,191 5.40% 41.3 92.4% 49.7% Sinale Familv Residential Full Value Sales (01/01/2012-07/31/2014 Schedule 12 Year Full Value Sales Average Price Median Price Median % Change 2012 789 $ 484,681 $417,500 2013 813 $ 591,831 $500,000 19.76% 2014 435 $ 652,588 $ 545,000 9.00% Sources: ` U.S. Census Bureau HdL Cornen & Cone City Finance Department 101 Schedule 13 City of Diamond Bar Principal Employers (unaudited) Current Fiscal Year and Nine Fiscal Years Ago Total 3,670 n/a Note: Total city employment 31,700 in 2014, provided by California Labor Market. Data Source: Info USA HdL, 102 2014 Number of Percent of Company Name Employees Rank Employment South Coast Air Quality Management 786 1 2.48% Walnut Valley Unified Schools 513 2 1.62% Video Transcription Services 500 3 1.58% Travelers 401 4 1.26% Magan Medical Inc 300 5 0.95% Pomona Unified Schools 213 7 0.67% Allstate Insurance - Claim Dept 200 6 0.63% Rapid Rack Industries Inc 151 9 0.48% Baybrook Services Inc 120 10 0.38% Total 3,184 10.05% 2005 Number of % of City Company Name Employees Rank Employment South Coast Air Quality Management 750 1 n/a Avnet 600 2 n/a Allstate Insurance Co 550 3 n/a Acosta Sales & Marketing Group 450 4 n/a Walnut Valley Unified Schools 520 5 n/a Pomona Unified Schools 210 6 n/a Lab Support Inc 200 7 n/a Century 21 Diamond Realty 150 8 n/a Baybrook Services 120 9 n/a Goodrich Corp 120 10 n/a Total 3,670 n/a Note: Total city employment 31,700 in 2014, provided by California Labor Market. Data Source: Info USA HdL, 102 Function General government Community development Community services Public works Total Function General government Community development Community services Public works Total City of Diamond Bar Full-time and Part-time City Government Employees by Function/Program Fiscal Year Ended June 30, Schedule 14 2010 2011 2012 2013 2014 21 24 23 24 24 8 8 8 8 8 75 75 75 87 70 9 9 9 8 8 113 116 115 127 110 Fiscal Year Ended June 30, 2005 2006 2007 2008 2009 25 22 21 24 25 7 8 8 6 7 74 77 74 69 71 7 7 8 10 10 113 114 111 109 113 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 employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Source: City Finance Department 103 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 Function Police: (1) Physical arrests Street Sweeping Parking Citation Fire Number of emergency calls Inspections Public works: (3) Street resurfacing (miles) Parks and recreation:(4) Number of recreation classes Number of facility rentals Schedule 15 City of Diamond Bar Fiscal Year Ended June 30, 2005 Operating Indicators by Function 2007 2008 2009 Last Ten Fiscal Years 558 582 543 Fiscal Year Ended June 30, 6,250 2010 2011 2012 2013 2014 2,615 700 647 737 630 494 5,110 4,137 3,766 3,776 5,774 2,654 2,594 2,516 2,604 2,760 979 1,202 1,287 1,477 1,434 23.3 12.0 9.2 8.3 12.5 2,456 2,115 2,096 2,082 2,623 4,111 4,147 4,270 4,332 4,178 1,102 1,376 1,558 1,569 1,315 4,123 4,305 4,555 4,103 4,299 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. 104 Fiscal Year Ended June 30, 2005 2006 2007 2008 2009 520 558 582 543 591 6,250 5,790 5,684 5,200 5,103 2,615 2,592 2,612 2,595 2,561 1,159 837 1,114 1,085 1,100 18.6 16.8 19.6 18.5 13.8 1,102 1,376 1,558 1,569 1,315 4,123 4,305 4,555 4,103 4,299 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. 104 City of Diamond Bar Schedule 16 Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year Ended June 30, Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Public safety (1) Police: Station Patrol units (all shifts combined) Fire stations (2) Highways and streets (3) Streets (miles) Streetlights Traffic signals Culture and recreation:(4) Parks acreage (developed) Parks acreage (undeveloped) Parks Public Tennis courts Community centers Golf Course:(5) County golf courses Sewer (3) Sanitary sewers (miles) 1 1 1 1 1 1 1 1 1 1 20 19 19 18 18 18 18 18 18 18 3 3 3 3 3 3 3 3 3 3 128 128 128 128 128 129.4 129.4 129.4 129.4 129.4 (a) (a) 233 233 233 294 294 294 294 294 (a) (a) 74 74 74 76 76 76 76 76 62.7 62.7 62.7 62.7 62.7 62.7 63.6 67.9 67.9 68.8 439.0 439.0 439.0 439.0 439.4 439.4 440.3 440.3 440.3 440.3 11 11 11 11 12 12 13 14 14 14 8 8 8 8 8 8 8 8 8 8 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 (a) (a) 157 157 157 158.4 158.4 158.4 161.21 161.21 (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. 105 THIS PAGE INTENTIONALLY LEFT BLANK 110