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CAFR - FY 2014-15
D"I"hioamond ',r� MllwiLity r%f rma comprehens*ive Annua Financial WKeport MUUMUU= i r.: t r '.= Prepared .!. • • i" • HoneywellDianna i Prepared .r.`•: r i t CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS Page(s) 101t1:Z0]Big 1i&to] .�'A6yxia1101,lk Letterof Transmittal................................................................................................................................. i GFOA Certificate of Achievement for Excellence in Financial Reporting .............................................. vi OrganizationChart................................................................................................................................ vii List of Elected and Administrative Officials.......................................................................................... viii FINANCIAL SECTION Independent Auditors' Report.................................................................................................................1 Management's Discussion and Analysis (Required Supplementary Information)..................................5 BASIC FINANCIAL STATEMENTS Government -wide Financial Statements Statement of Net Position........................................................................................................15 Statementof Activities..............................................................................................................16 Fund Financial Statements Balance Sheet — Governmental Funds....................................................................................17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position..............................................................................................18 Statement of Revenues, Expenditures, and Changes in Fund Balances.. .... _ ....... ...... _ ...... 19 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities .............................20 Statement of Net Position — Proprietary Funds.......................................................................21 Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds....................................................................................................22 Statement of Cash Flows — Proprietary Funds........................................................................23 Notes to Basic Financial Statements..........................................................................................25 CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30,2015 Page(s) Budgetary Comparison Information: Schedule ofProportionate Share ofthe Net Pension Liability .................................................... 5S COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Statement ofRevenues, Expenditures, and Changes in Fund Balances -NonmojnrGovernmental Funds ....................................................................... 04 Budgetary Comparison Schedules - Special Revenue Funds: StateGas Tax Fund ................................................................................................................. 5Q Proposition ATransit Fund ...................................................................................................... 78 Proposition Transit Fund ---------------------------------'71 TranoportaUonGrandFund----------------------------------. 72 Integrated Waste Management Fund ...................................................................................... 73 Traffic Improvement Fund ........................................................................................................ 74 SeweryWitigaUonFund------------------------------------. 75 AirUuaity|mprovementFund--------------------------------. 76 MTAGnardFund---------------------------------------. 77 Beverage Center Recycling Grant Fund ................................... —.......................................... 78 Used Oil Block Grant Fund ...... .......................................... --- ............ ---- ..................... —78 Park and Facility Development Fund ....................................................................................... 80 Community Development Block Grant (COBG)Fund ............................................................. 81 Citizens Option for Public Safety (COPS)Fund ...................................................................... 82 California Law Enforcement Equipment Program (CLEEP)Fund ........................................... 83 Landscape Maintenance District Fund ..................................................................................... 84 Measure RLocal Return Fund ................................................................................................. 85 PEGFees Fund .................... —............. ---.................................... ---................ —'86 WasteHauler Fund ... ---- ..................... ------................................ --- .................. —87 Budgetary Comparison Schedule — Capital Projects Fund: CITY OF DIAMOND BAR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30,2015 Page(s) BudgetoryComparisonSohmdu|e-DebtSenimaFundo: Combining Statement ofRevenues, Expenses, and Changes in Fund Net Position — Internal Service Funds ................................................................................ 91 Combining Statement ofCash Flows — Internal Service Funds .................................................. U2 STATISTICAL SECTION Financial Trends: Net Position byComponent - Last Ten Fiscal Years .................................................................. 84 Changes inNet Position - Last Ten Fiscal Years ........................................................................ 06 Fund Balances nfGovernmental Funds - Last Ten Fiscal Years ............................................... 99 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years .......................... 100 Revenue Capacity: Assessed and Estimated Actual Value cf Taxable Property - Last Ten Fiscal Years ''''''...1O3 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ....................................... 1O4 Top 10Property Taxpayers'Current Fiscal Year and Ten Fiscal Years Ago .......................... 1O8 Secured Property Tax Levies and Collections — Last Ten Fiscal Years ................................... 107 Debt Capacity: Ratios ofOutstanding Debt byType - Last Ten Fiscal Years ................................................... 1O8 Direct and Overlapping Debt ... ................................................ .............................................. 108 Computation of Legal Debt Margin ' Last Ten Fiscal Ynans............ ................. —................ 110 Demographic and Economic Information: Demographic and Economic Statistics ' Last Ten Calendar Years .......................................... 111 Principal Employers ' Current Fiscal Year and Nine Fiscal Years Ago .................................... 112 Operating Information: Full -Time Equivalent City Employees byFunction ' Last Ten Fiscal Years ............................. 113 OperaUng|ndicatornbyFunoUon-Loot Ten Fiscal Years ....................... ............. ---........ 114 City of Diamond Bar 21670 Copley Drive e Diamond Bar, CA 91765-4178 a u,rt (909) 039-7090 e Fax (909) 861-3117 yfy ld 1 www.DiamondBarCA.gov November 17; 2015, 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 liar for the; fiscal year ended Tune 30, 2015, This report consists ofmanagement's representations concerning the friances 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 Pity's management. To provide a reasonable bads for snaking these representations, management of City has established a comprehensive internal control frainewvorkthat is designed both to protect the City's assets from loss, theft, or mistirse and Sieve Tye to compile sufficient reliable information for the preparation of the City's Mayor financial statements in conformance with generally accepted accounting principles (CAI'). Because the cost of internal controls should not Nancy. A. Lyons outweigh their benefits, the City's comprehensive framework of internal Mayor Pro Tern controls has been designed to provide assurance that the financial Carrel Herrera statements will. be flee from misstatement. As management, we assert Council Member that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. Jimmy Lin Council Member The City's financial statements' have been audited. by Lance,' oll, Jack Tanaka :Lunghard, LIT, a firm of certified public. accountants, The goal of the Council Member independent audit was to provide reasonable assurance that the financial statements of the City for fiscal year ended ;June 30, 2015, 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, 2015, 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. AAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements its the form of Management's Discussion and Analysis 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 ITY OF DIAMOND BAR The City, incorporated in 1983, is located at the junction of the 57 and 60 freeways, As a result, the City of Diamond Par is at, the hub of the Los Angeles basin transportation network. A"twventy-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 Par's shopping and business centers. Recreational opportunities within the City include more than Til acres of developed parr facilities, hiking trails,'a community center, an 18 -hole public golf course and 370 acres of undeveloped publicly owed open space, The City has operatedunder the council-manager form; of government since incorporation. Policy making and legislative authority are vested in a ive member City ' Council. The City' Council is responsible, among other things,; for passing ordinances, adopting the budget, appointing committees and task farces, and hiring bath 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 Torn 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 Leas Angeles County Fire District provides fire protection, which is independent of the City. The County also provides library services through a Library District as well as sewer and sanitation services through a Sanitation District. Funds are collected through property tax bills and are disbursed directly 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, mane of these activities are included in this report. ii ECONOMIC I'I'I l AND OUTLOOK Fiscal year 2014115 saw improvement in the rational, state and local economies. U-nernployment rags have continued to come down and consumer spending is on the rise. The housing market has also continued to improve. Fiscal year 2014/15 was a year of continued growth for the City ofDiallxond 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 $2.5 million during FY 14/15 with the unassigned hand balance growing; to $17,7 million and total General Fund reserves coming in at $22.2 million, 'These reserve figures represent 90.8% and l 14.4%i respectively, of total General Fund expenditures. The City's sales tax base continued to grow with an increase in revenue of 8.6% 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 prig 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. FY 14/15 saw the addition of new business' which have provided additional and significant sales tax revenue to the City. New retail and restaurantoptions are under construction or in the planning phase for openings in FY 15/16 and FY 16/17. Hoene valuer also saw a significant rise during FY 2014/15, The largest revenue source in the'City, Property Tax revenue, was up 3.3%. Assessed valuations citywide increased by 5.5% w=hich is just below the countywide, increase of 6,13%,.' Another sign that the local economy is continuing to recover is the increase in building permit activity. Much of this building activity is centered around the Willow Heights housing development which is a 182 unit project with a 2.5 acre public hark., During; FY 14115, building permit revenue more than doubled over the previous year. This is the first large-scale housing, project constructed in the City during the last several years'. FY 2015/16 will see the. completion of the project. 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 FOA) awarded. a Certificate of Achievement for Excellence in Financial Deporting to the City of Diamond. Bar for its comprehensive annual financial report for the fiscal year ended June '30, 21314. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports, iii In order to be awarded a Certificate of chievernent, 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 legalrequirements. 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 twenty consecutive years (fiscal years ended 1995 through 2014). 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 Citya The City directly provides alimited 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 Liar 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, parr maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include. comniunity 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 accountingsystem has been developed by giving consideration to the adequacy` of internal accounting controls. Interinal accounting controls are implemented by the City to provide 'reasonable assurance that assets are safeguarded ` against loss from unauthorized - se 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 thein. 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 sincere appreciation for their cooperation andcontributions 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, Sell, 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 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Diamond Bar California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 Executive Director/CEO Vi VII ELECTED AND ADMINISTRATIVE OFFICIALS Mayor Mayor Pro Tern Comnci|memLer Comnci|mamLer Comnci|memter City Manager Deputy City Manager City Clerk Director of: Community Services Community Development Finance Information Systems Public Works FISCAL YEAR 14-15 viii Steve Tye Nancy A. Lyons Carol Herrera Jack Tanaka Jimmy Lin JamonDeStofono Ryan McLean TnmmyeChbbins Bob Rose GrogGubnoon Dianna Honeywell KenDeufurgau David Liu LSf1w, 146 * Go 0 Ot L 01,0140 City of Diamond Bar, California 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 7077M 70 -MM -1 Management is responsible for the preparation and fair presentation of these financial statements T-9 accordance with accounting principles generally accepted in the United States of America; this includ the design, implementation, and maintenance of internal control relevant to the preparation and �] f presentation of financial statements that are free from material misstatement, whether due to fraud error. allip,lopilla I I e (; I I' GI r I IIIITg an opi the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluati the appropriateness of accounting policies used and the reasonableness of significant accounti estimates made by management, as well as evaluating the overall presentation of the financi statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Lance, Soil & Lunghard, LLP 203 North Brea Boulevard � Suite 203 - Brea, CA 92821 , TEL 714,672.0022 - Fax 714.672.0331 46 00 LSL Tothe Honorable Mayor and Members ofthe City Council City ofDiamond Bar, California Opinion In our opinion, the Dnonnio| statements referred to above present foir|y, in all material nospects, 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, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change /nAccounting Principle As discussed in Note 1 tothe financial statements, in 2U15the City adopted new accounting guidance. GASB Statement No. 68. Accounting and Financia/ Reporting for Pensions — An Amendment of GASB Statement No. 27 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and anakmio, the budgetary comparison schedules for the General Fund. the Schedule of Proportionate Share of the Net Pension Liability and the Schedule of Han Contributions be presented to supplement the basic financial statements. Such infonnation, although not a port of the basic financial statemento, is required by the Governmental Accounting Standards Board, who considers it to be an essential pod of financial reporting for placing the basic financial statements in on appropriate openatinna|, eonnnmio, or historical context. We have applied certain limited procedures tnthe 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 eoounanoa 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 offorming opinions onthe financial statements that collectively comprise the City's basic financial statements. The introductory mention, combining and individual nonmajnrfund financial stahements, 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 na|ata 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 pnooadureo, 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 themao|vea, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmojorfund financial statements and schedules are fairly stated in all mohmha| nmapeoto in relation tothe basic financial statements aoawhole. PA 4 00; LSL CEgii6 �i£&� C CkC ACCgU-N-i i0`S To the Honorable Mayor and Members of the City Council City of Diamond Bar, California 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 4, 2015, 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 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 4, 2015 3 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, 2015. 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 $32,785,658. • The total cost of all City programs equaled $32,035,132. • The assets of the City of Diamond Bar exceeded its liabilities at the close of the fiscal year by $395,162,740 (net position). Of this amount, $20,659,058 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 $27,884,766, an increase of $2,745,095 in comparison with the prior year. Approximately $17.6 million of the $27.9 million is available for spending at the City's discretion. • At the end of the current fiscal year, unassigned fund balance for the general fund was $17,656,659, or 90.8% of the amount of general fund expenditures. The General Fund unassigned balance of $17.7 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. New to the statement of net position as of June 30, 2015 is the line item dedicated to reporting Net Pension Liability. The balance of the net pension liability is now being reported (per GASB #68) and was implemented this year (see Note 8 in the notes to the financial statements for more information). 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. C.1 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 $395,162,740 at the close of 2015. (see Table 1) By far the largest portion of the City's net position (93.3%) 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. 7 Table 1 CITY OF DIAMOND BAR'S Statement of Net Position Governmental Activities 2015 2014 Current and other assets $ 36,937,467 $ 30,963,676 Capital assets 379,401,376 383,069,197 Total Assets Deferred pension related items Total Deferred Outflows Long-term debt outstanding Other Liabilities Total Liabilities Deferred pension related items Total Deferred Inflows Net position: Net investment in capital assets Restricted Unrestricted Total Net Position 416,338,843 414,032,873 503,376 - 503,376 - 14, 868, 078 12, 003, 205 5,667,561 3,600,515 20,535,639 15,603,720 1,143,840 - 1,143,840 - 368, 779, 901 372, 068, 596 5,723,781 5,465,860 20,659,058 20,894,700 $ 395,162,740 $ 398,429,156 The City's net position decreased by $3,266,416. This decrease is primarily due to the inclusion of the net pension liability coupled with higher depreciation expense which both reduce net position. At the end of fiscal year 2015 the City reports a decrease of $235,642 in the unrestricted net position from the prior fiscal year. Nearly $4.4 million in additional liabilities or deferred inflows of resources were reported for the first time as part of total net position. These liabilities have a direct impact on the level of unrestricted funds. 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 $20,659,058 in Unrestricted Net Position. HA 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 Other taxes Motor vehicle in lieu Use of money & property Other Gain/(Loss) on Disposal of Capital Asset Total revenues 2015 2014 $ 10,869,461 $ 7,218,940 4,443,765 4,203,990 717,961 207,971 4,448,566 4,307,077 935,355 851,249 3,974,564 3,658,327 1,460,342 1,393,584 442,914 471,455 5,133,910 4,862,100 244,275 256,758 114,545 52,891 - 1,328,681 32,785,658 28,813,023 Expenses: General Government 6,524,968 7,301,502 Public Safety 5,929,156 5,627,026 Highways and Streets 10,225,922 10,599,386 Community Development 2,587,504 2,346,073 Parks, Recreation and Culture 6,300,920 6,463,192 Interest and Fiscal Charges 466,662 477,201 Total expenses 32,035,132 32,814,380 Increase(Decrease) in net position Net position - beginning Restatement of Net Position Net position - ending Revenues 750,526 (4,001,357) 398,429,156 402,430,513 (4,0 1 5,042) - $ 395,162,740 $ 398,429,156 In the Statement of Activities, the City's total revenues were $32.8 million, while the total cost of all programs and services was $32.0 million. Revenues this fiscal year were 13.8% 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: • Property Tax revenues were up 3.3% from FY13-14. The housing market continued to improve during FY 14-15 which afforded greater inflation/Proposition 13 based adjustments. Housing sales also continued to increase which allowed the County to increase overall assessed valuations by 6.13% during 2015 while Diamond Bar's assessed valuations were up by 5.5% during 2015. A • Transient Occupancy Taxes grew by 9.9% in FY 14-15 as the local economy stabilized and business and vacation travel continued to increase. • Sales tax revenues were up about 8.6% due to continued improvement in the local economy, new businesses within the City, as well as the increase in the triple flip portion of sales tax. • Investment Income increased by 30.0%, excluding the fair market value adjustment of $40,595, 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. The Local Agency Investment Fund (LAIF) rate also started to show some improvement and ended the fiscal year at 0.28%. By the end of FY 14/15 the City's overall investment yield increased from 0.87% in FY 2013/14 to 0.97% in FY 2014/15. 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 $32.0 million which is approximately $779,000, or 2.4% lower than the previous fiscal year. This decrease was due in part to one-time expenses reflected as follows: • There was a decrease in General Government expenses of approximately 10.7% this year. This was due primarily to lower capital outlay this year compared to last year. • There was an increase in Public Safety expenses of approximately 5.3% this year. This was due to the fact that the Community Relations Officer position was filled during FY 2014/15 after being vacant during last fiscal year. • The Streets and Highways category was lower this year by a little over $373,000. This is due to a slight decrease in the number of Capital Improvement projects completed during the fiscal year. • Community Development expenses were higher in 2014/15 by $241,000. The increase reflects higher professional services required due to the continued increase in building activity as well as filling staff vacancies during the 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. Me 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, 2015, the City of Diamond Bar's governmental funds reported combined ending fund balances of $27,884,766, an increase of $2,745,095 in comparison with the prior year. Approximately 63.0% of this amount ($17,585,098) 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 ($75,887), 2) restricted for particular purposes ($5,723,781) 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 $17,656,659, while the total fund balance was $22,232,546. 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 90.8% of total general fund expenditures, while total fund balance represents 114.4% 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 $2,470,096. Factors contributing to the change in General Fund balance reserves are as follows: • General Fund revenues were up significantly ($3,632,579 or 17.9%) from FY13/14. The largest increase was in the Licenses and Permits category. This was due to the collection of developer and permit fees related to the Willow Heights housing project. • The Taxes category also had a slight increase, primarily due to an increase in property tax, sales tax and franchise tax revenues. • Costs were only slightly higher this year in the General Fund by $302,914 (1.6%) as compared to last year. • 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 aids the City in containing costs. 11 General Fund Budgetary Highlights Original revenue budget projections were increased during the year by 0.9% to reflect the increased building activity due to the construction of the Willow Heights housing development. The actual revenue came in higher than anticipated by $1.1 million. This is due to higher than anticipated property, sales and transient occupancy tax being collected as well as higher permit fees due to an accelerated building schedule for Willow Heights. 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 $1,935,752 or 7.8% from the original budget to the amended budget. The final expenditures actually came in $3,906,361 less than the amended budget due primarily to fewer projects being completed therefore lower transfers out of the General Fund. These projects have been carried over to the new fiscal year. 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, 2015 amounts to $379,401,376 (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 2015 2014 $ 5,633,624 $ 5,633,624 265,614,104 265,614,104 20,237,112 22,777,534 607,700 798,058 925,982 953,119 81,910,754 86,624,556 4,472,100 668,202 $ 379,401,376 $ 383,069,197 The City's capital assets decreased in value $3,667,821 during FY14/15. This decrease was due to depreciation expense offset by higher construction in progress than in previous years. Construction in progress at the end of the year included eleven projects in various stages of design or construction. The eleven projects equaling $4,472,100 include street rehabilitation and enhancement projects, traffic mitigation projects, a comprehensive groundwater drainage project, parking lot improvements, and various park projects. 12 Additional information on the City's capital assets can be found in Note 4. Long-term debt — At the end of the current fiscal year, the City of Diamond Bar's total long-term debt equaled $11,224,165. The following table shows the breakdown of the long-term debt outstanding: Outstanding Long Term Debt at Year-end Variable Rate Lease Revenue Bonds (backed by the Public Financing Authority) $ 10,420,000 Unamortized Bond Premium 201,475 Compensated Absences 602,690 $ 11,224,165 See footnote 5 for additional information on the City's long-term liabilities as of June 30, 2015. 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 2015/2016 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 15/16 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. 13 14 CITY OF DIAMOND BAR STATEMENT OF NET POSITION JUNE 30, 2015 Total Deferred Outflows of Resources 503,376 Liabilities: Accounts payable Governmental Accrued liabilities Activities Assets: 37,046 Cash and investments $ 33,852,333 Receivables: 1,164,526 Accounts 750,087 Notes and loans 385,639 Accrued interest 56,010 Prepaid costs 77,337 Due from other governments 1,814,561 Restricted assets: 3,207,669 Cash with fiscal agent 3 Due from employees 1,497 Capital assets not being depreciated 275,719,828 Capital assets, net of depreciation 103,681,548 Total Assets 416,338,843 Deferred Outflows of Resources: Deferred pension related items 503,376 Total Deferred Outflows of Resources 503,376 Liabilities: Accounts payable 3,630,147 Accrued liabilities 418,034 Accrued interest 37,046 Unearned revenue 23,095 Deposits payable 1,164,526 Due to other governments 385,639 Retentions payable 9,074 Noncurrent liabilities: 20,659,058 Due within one year 855,705 Due in more than one year 10,368,460 Net pension liability 3,207,669 OPEB liability 436,244 Total Liabilities 20,535,639 Deferred Inflows of Resources: Deferred pension related items 1,143,840 Total Deferred Inflows of Resources 1,143,840 Net Position: Net investment in capital assets 368,779,901 Restricted for: Community development projects 1,482,522 Public safety 171,928 Public works 3,862,123 Capital projects 207,205 Debt service 3 Unrestricted 20,659,058 Total Net Position $ 395,162,740 See Notes to Financial Statements 15 YEAR ENDED JUNE 30,2015 Fu nctions/Prog rams Primary Government: Governmental Activities: General government Public safety Community development Parks, recreation and culture Highways and Streets Interest on long-term debt $ 6.524.068 Revenue and $ - Changes in Net Program Revenues Position Operating Capital - (5.298.210) Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities $ 6.524.068 $ 587.081 $ - $ - $ (5,937.887) 5.929.156 523.145 107.801 - (5.298.210) 2.587.504 2.463.932 488.553 - 384.981 6.308.920 1.758.319 402.845 22.807 (4.116.949) 10.225.922 5.538.984 3.444.506 895.154 (549.218) 460682 - - - (466,662) General Revenues: Taxes: Property taxes, levied for general purpose 4,448.566 Transient occupancy taxes 035.355 Sales taxes 3.974.584 Franchise taxes 1.460.342 Ot ertuxea 442.914 Motor vehicle in Ueu-unreathded 5.133.010 Use ofmoney and property 244.275 Other 114,545 Total General Revenues 16,754,471 Change in Net Position 750,526 Net Position atBeginning ofYear 398429156 Restatement ofNet Position See Notes to Financial Statements 16 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 toother governments Due t:other funds Retentions payable 111114M. 11119VIOMM r�` Other Total Governmental Governmental Funds Funds $24.833.75O $ 1.114.437 $ 5.764.807 $ 31.512.904 370288 - 189,626 559.914 - - 385.639 385.039 56.010 - - 50.010 75.887 - - 75,887 1.378701 202.055 233`805 1.814.581 75,675 - - 75,675 1/497 - - 1.487 3 3 $ 1,983.712 $ 1,291.071 $ 258.559 $ 3.525^342 395,059 ' 21.975 418.034 ' ' 23.085 23.095 1.164.520 ' - 1.164.520 ' ' 385,639 385.039 ' ' 75.675 75.675 ' 7.374 1.700 9.074 K,,544,297 1,298,445 758,643 5,601,385 Deferred Inflows of Resources: Unavailable revenues 814965 89608 91,456906029 Total Deferred Inflows of Resources 814,965 89,608 91,456 996,029 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 Resources, and Fund Balances 75,887 75,887 - ' 1,482522 1,482.522 - - 171,928 171.028 - - 5.862.123 3.802.123 ' - 207,205 207205 4.500,000 - - 4.500.000 17656 - 17585098 22,232,546 (71,561) 5,723,781 27,884,766 See Notes tmFinancial Statements 17 CITY OF DIAMOND BAR RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2015 Fund balances of governmental funds $ 27,884,766 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. 378,880,852 Deferred outflows related to pension items: Adjustments due to difference in proportions $ 92,963 Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions 6,860 Current year contributions that occurred after the measurement date 403,553 503,376 Long-term debt, compensated absences, other post employee benefit obligation and net pension liability that have not been included in the governmental fund activity: Bonds payable $ (10,420,000) Unamortized bond premiums/discounts (201,475) Compensated Absences (602,690) Other post employment benefit obligation (436,244) Net pension liability (3,207,669) (14,868,078) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (37,046) Deferred inflows related to pension items: Net difference between project and actual earnings on pension plan investments $ (1,077,925) Adjustment due to difference in proportions (580) Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions (65,335) (1,143,840) 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. 996,029 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. 2,946,681 Net Position of governmental activities $ 395,162,740 See Notes to Financial Statements 18 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES |N FUND BALANCES GOVER00YENTALFUNDS YEAR ENDED JUNE 3V2015 Capital Projects Funds Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use ofmoney and property Fines and forfeitures Miscellaneous Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges 0TP1ff4TPT-71r-ff V= Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Jses): Transfers in Transfers out 1,278,249 4,151,163 1,655,217 7,084,629 Capital Other Total 2,470,09617,078 Improvement Governmental Governmental General Fund Funds Funds � 10.730.234 $ - $ 872.492 $ 11.402.728 5.022.810 - 452.147 5.474.705 5.471.410 205^422 5.508.057 11.185.489 1.700.404 - 1.583.952 3.344.350 225.020 - 47.835 273.050 523.145 - ' 523.145 136,786 - - 136,786 23,870,417 205,422 8,265,084 32,340,923 4.530^491 ' 450.000 5.040.491 5.909.419 4.985 5.014.404 2.035.288 - 505.162 2.540.430 4.144.974 80.904 4.225.938 2.508.497 - 2.707.580 5.216.083 252.448 4.330.507 54.938 4.840.891 385.000 305.000 - - 481,656 481656 19,441,095 4,339,507 4650,291 28430893 4,429,322 3,614,793 3010030 1,278,249 4,151,163 1,655,217 7,084,629 See Notes to Financial Statements 19 2,470,09617,078 257,921 2,745,095 19,762,450 See Notes to Financial Statements 19 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, 2015 Net change in fund balances - total governmental funds $ 2,745,095 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 $ 4,110,111 Depreciation Expense (7,604,605) Loss on disposal of capital assets (154,785) (3,649,279) 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 365,000 Amortization of bond premium 14,126 CJPIA General Liability Cumulative Deposit 67,148 Other post employment benefit obligation (67,140) Compensated Absences (36,338) 342,796 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 868 Pension obligation expenses is an expenditure in the governmental funds, but reduce the Net Pension Liability in the statement of net position and changes in the Net Pension Liability are expensed in government -wide statements. 168,809 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. 433,045 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. 709,192 Change in net position of governmental activities $ 750,526 See Notes to Financial Statements 20 I 141191• •�#, STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2015 Assets: Current: Cash and investments Receivables: Accounts Prepaid costs Noncurrent: Capital assets - net of accumulated depreciation HITIRIFTIT-V =- W-IsMI1911• 1110M # Liabilities: Current: Accounts payable Total Liabilities Net Position: Investment in capital assets Unrestricted 1111150M7 I I my See Notes to Financial Statements 21 L Fri IT11�4_000 -7- AIXT Activities - Internal 190,173 1,450 2,530,962 520,524 2,426,157 $ 3,051,486 CITY OF DIAMOND BAR STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2015 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 22 Governmental Activities - Internal Service Funds $ 9,550 9,550 198,935 123,087 154,961 476,983 (467,433) 11,690 11,690 (455,743) 1,164,935 709,192 2,237,489 $ 2,946,681 I 141191• •�#, Net Cash Provided (Used) by Operating Activities (413,705) Cash Flows from Non -Capital Financing Activities: Cash transfers in 1,164,935 Net Cash Provided (Used) by Non -Capital Financing Activities 1,164,935 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (136,419) Net Cash Provided (Used) by Capital and Related Financing Activities (136,419) Cash Flows from Investing Activities: Interest received 11,690 Net Cash Provided (Used) by Investing Activities 11,690 Net Increase (Decrease) in Cash and Cash Equivalents 626,501 Cash and Cash Equivalents at Beginning of Year 1,712,838 Cash and Cash Equivalents at End of Year $ 2,339,339 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ (467,433) Adjustments to reconcile operating income (los net cash provided (used) by operating activitie Depreciation (increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities I See Notes to Financial Statements 23 154,961 (189,016) (77) 87,860 53,728 $ (413,705) Governmental Activities - Internal Service Funds Cash Flows from Operating Activities: Insurance Premiums paid $ (388,154) Payments to suppliers (35,227) Cash received from others 9,676 Net Cash Provided (Used) by Operating Activities (413,705) Cash Flows from Non -Capital Financing Activities: Cash transfers in 1,164,935 Net Cash Provided (Used) by Non -Capital Financing Activities 1,164,935 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (136,419) Net Cash Provided (Used) by Capital and Related Financing Activities (136,419) Cash Flows from Investing Activities: Interest received 11,690 Net Cash Provided (Used) by Investing Activities 11,690 Net Increase (Decrease) in Cash and Cash Equivalents 626,501 Cash and Cash Equivalents at Beginning of Year 1,712,838 Cash and Cash Equivalents at End of Year $ 2,339,339 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ (467,433) Adjustments to reconcile operating income (los net cash provided (used) by operating activitie Depreciation (increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments Net Cash Provided (Used) by Operating Activities I See Notes to Financial Statements 23 154,961 (189,016) (77) 87,860 53,728 $ (413,705) 24 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2015 1711111111111!=H - =t. a =M. A 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. 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. 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. 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. 25 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 •.: •..':• 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. 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. Operating revenues and expenses generally result from providing services and producing 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 .......... basis of accountinq, 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 _�udagments 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 0 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30 2015 Note 1: Reporting Entity and Significant Accounting Policies (Continued) extent normally collected within the availability period. All other revenue items art 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, in accordance with special regulations, restrictions or limitations. When both restricted and unrestricted resources are combined in a fund, expenses arg; considered to be paid first from restricted resources, and then from unrestricted d. Fund Classifications The General Fund is the primary operating fund of the City and is used to account for all revenues and expenditures ofthe City not legally restricted amtouse. Abroad range of municipal activities any provided through this fund including City K4onaQer, City Attorney, Financm, City C|erk, Public Works, Building and Safety. and Parks and Recreation. The Capital Improvement Fud has been classified aoamajor fund and isused toaccount for City capital improvement projects. The revenues in this fund will generally come from transfers in from other funds and have been identified for specific capital projects. The City's fund structure also includes the following fund types: Special Revenue Funds have been used for specific revenue sources that have restricted uses for special purposes. Debt Service Funds are used to account for the receipt ofrevenues and payments of debt service related tooutstanding 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, building maintenance and computer maintenance. e. Investments For financial reporting purposes, investments are stated otfair value. Changes in fair value that occur during a fiscal year are recognized as investment incorra reported for that fiscal year. Investment income includes interest earnings, changes in 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 agent Each fund's share in this pool is displayed in the accompanying financial statements cash and investments. Investment income earned by the pooled investments i's allocat to the various funds based on each fund's average cash and investment balances . I 27 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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. MEL Capital assets used in operations are depreciated over their estimated useful lives usi:=_# the straight-line method in the Government -wide and Proprietary Fund Financia', Statements. Depreciation is charged as an expense against operations and accumulabe-*. depreciation is reported on the respective balance sheet. The lives used for depreciatior purposes of each capital asset class are: Buildings and improvements 10-2Uyears Furniture and fixtures S-5years Vehicles 5yearo Infrastructure 1D-5Oyears Equipment 5-2Oyears 04 lisp 111W1.111 111IM-1 I Sligo - future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has one item that qualifies for reporting in this category. It is deferred outflows relating to the net pension obligation reported in the government -wide statement of net position. These outflows are the results of contributions made after the measurement period, adjustments due to difference in proportions, and the difference between actual contributions made and the proportionate share of the risk pool's total contributions. 10. CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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 one item which arises under the 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. In addition, the government has an item that qualifies for reporting in this category which relate to deferred inflows relating to the net pension obligation reported in the government -wide statement of net position. These inflows are the result of the net difference between projected and actual earnings on pension plan investments, changes in employer's proportion and difference between the employer's contributions and the employer's proportionate share of contributions, and adjustments due to difference in proportions. These amounts are deferred and amortized straight-line over a five year period or over the remaining service life. 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 be made about the order in which the resources are considered to b applied. government'spolicy o consider restricted fund balance to have been depleted before using any of t. d• of unrestricted fund balance. the components of unrestricted fund balance can be used for the same purpose, committed fund balance depleted first, followed by :# e• 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. c7 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Reporting Entity and Significant Accounting Policies (Continued) 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. Compensated absences will be reported in government funds only if they have matured, such as upon retirement. 1. Pension Plan For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CaIPERS' website under Forms and Publications. m. 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 n. Use of Estimates January 1 July 1 November 1 - 1st installment February 1 - 2nd installment December 10 - 1 st installment April 10 - 2nd installment December 11 - 1 st 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. 011 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 1: Reporting Entity and Significant Accounting Policies (Continued) o. 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 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. p. Change in Accounting Principles The Entity implemented GASB Statement 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB Statement No. 27. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the government -wide statement of activities. GASB Statement No. 71 — Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a local government employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. The provisions of GASB Statement No. 71 are effective for financial statements beginning after June 15, 2014. 31 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Statement ofNet Position: Cash and investments |mpr*dcash onhand $ 1,950 Demand deposits 3.152.918 Investments: United States Government Sponsored Enterprise Securities 8'645'874 Certificates nfDeposit 10'396.534 Local Agency Investment Fund 11.855.057 Held by fiscal agents: Money Market Mutual Funds 3 $ 33,852,336 City Treasurer may waive the collateral requirement for deposits that are fully insured UP $250,000 by the FDIC. 1 32 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE i 2015 (1) Rotes Must be rated N/A Not Applicable . . f• ' ..i. f.: � f.. . . .: •' .:," is '• i . �. +. f •i' • �. � .•.,." . • f. . ..... � ..,, f f...: • is .. i..f. .f .: f:f ':il • i:.. • i. 'f.. Authorized •. 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 33 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 Maximum Maximum Maximum Percentage of Investment in Authorized Investment Type Maturity Portfolio One Issuer United States Treasury Obligations 5 years None None United States Government Sponsored Enterprise Securities 5 years 40% None Banker's Acceptance 180 days 40% 30% Time Certificates of Deposits 5 years None None Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Money Market Mutual Funds 5 years 15% None Repurchase Agreements 1 year None None Medium -Term Corporate Notes (1) 5 year 30% None Local Agency investment Fund (LAIF) N/A None $ 40,000,000 (1) Rotes Must be rated N/A Not Applicable . . f• ' ..i. f.: � f.. . . .: •' .:," is '• i . �. +. f •i' • �. � .•.,." . • f. . ..... � ..,, f f...: • is .. i..f. .f .: f:f ':il • i:.. • i. 'f.. Authorized •. 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 33 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 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 value of an investment. Generally, & 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. Remaining Maturi!y (in Months) 12Months m | Less 1 3 3 5 Total nveaonem / _-�,�/�os USGovernment Sponsored Securities $ Certificate ofDeposits 1.740.724 Local Agency Investment Fund (LA|F) 11.655.057 Held byFiscal Agents: Money Market Mutual Funds 3 $ 13.395.784 $ 6,382,964 $ 2,262910 $ 8.645874 3.230.304 5.425.506 10.306.534 - - J $ 9.613.288 $ 7.688,416 $ 30.607,468 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: Total aaof Investment Type June 30,2015 Aaa Certificate of Deposits Held by Fiscal Agents: Money Market Mutual Funds 34 $ 8,645.874 $ 8.645.874 $ 10.306.534 10.396.534 11.655.067 - K, mrATO -me 9 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 2: Cash and Investments (Continued) Disclosures Relating to Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City does not accept 150% of the secured public totals. At June 30, 2015, 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 3: Interfund Transfers and Due To/From Other Funds Transfers In Transfer Out Amount Internal Service Funds General Fund $ 1,164,935 Capital Improvement Fund General Fund 477,787 Capital Improvement Fund Other Governmental Funds 3,673,376 General Fund Other Governmental Funds 1,278,249 Other Governmental Funds General Fund 1,594,753 Other Governmental Funds Other Governmental Funds 60,464 $ 8,249,564 Transfers to the General Fund from the Other Governmental Funds were made to reimburse the General Fund for various capital projects and administrative expenditures. 35 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Transfers to the Capital Improvement Fund from the General Fund and Other Governmenta Funds were made to pay for various capital projects. Transfers from the General Fund to the Other Governmental Funds were Tade J various capital improvement projects, the City general plan revision, a fund 6 ficit and die service payments. Transfers from Other Governmental Funds to Other Governmental Fun were made to fund various capital improvement projects. Transfers from the Oth Governmental Funds to the Internal Service Funds were made to fund the self-insuranc Due from other funds Due to other funds Amount eneral Fund Other Governmental Funds $ 75,675 A summary of changes in the Governmental Activities capital assets at June 30. 2015. is as Total Accumulated Depreciation 124,415,9527,759,566_ 60,087 132,115,431 Total Capital Assets Being Depreciated, Net 111 153207 {7)471[7191 - 103,681,548 Governmental Activities Capital Assets, Net 36 Balance at Balance at July 1, 2014 AddKionaDeletions June 30, 2015 Capital assets not being depreciated: --------- -------' Land $ 5.035.024 $ - $ - $ 5.633.024 Right nfway 205.014.104 205.814.104 Construction inprogress 608202 3,958/683_ 154,785_ 4,472,100 Total Capital Assets Not being Depreciated 271,915,930 3,958,683_ 154,785. 275719828 Capital assets being depreciated: Buildings and improvements 40.850.800 11.450 - 40.909.702 Furniture and fixtures 1.537.729 118.107 46.191 1.007.045 Vehicles and equipment 2.427.901 160.204 18.096 2.574.288 Infrastructure 190,645,283 190,645,283 Total Capital Assets being Depreciated 235,569,219 287,847_ 60\,087_ 235,796,979 Less accumulated depreciation for: Buildings and improvements 18.180.772 2.551.878 ' 28.732.650 Furniture and fixtures 739.071 300.485 46.191 899.945 Vehicles and equipment 1.474.782 187.421 13.888 1.848.307 Infrastructure 104020727 4,713,802_ - 108,734,529 Total Accumulated Depreciation 124,415,9527,759,566_ 60,087 132,115,431 Total Capital Assets Being Depreciated, Net 111 153207 {7)471[7191 - 103,681,548 Governmental Activities Capital Assets, Net 36 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 103M= General government $ 726,711 Public safety 14,752 Highways and streets 4,923,945 Parks, recreation and culture 1,939,197 Internal Service Funds depreciation charges to program 154,961 $ 7,759,566 Note 5: Long -Term Liabilities Long-term liability activity for the year ended June 30, 2015, was as follows: Adjusted Balance Balance Balance at Due Within July 1, 2014 Adjustments July 1, 2014 Additions Deletions June 30, 2015 One Year Bonds payable Revenue Bonds $ 10,785,000 $ $ 10,785,000 $ $ 365,000 $ 10,420,000 $ 385,000 CJPIA General Liability Cumulative Deposit Payable 67,148 67,148 67,148 - - Compensated Absences 566,352 566,352 478,663 442,325 602,690 470,705 Total $ 11,418,500 $ - $ 11,418,500 $ 478,663 $ 874,473 11,022,690 $ 855,705 Net unamortized bond premium 201,475 Net Long -Term Debt $ 11,224,165 In December 2002, the Diamond Bar Public Financing Authority issued $13,755,000 -IT 2002 Series A Variable Rate Lease Revenue Bonds to finance the construction of community/senior center project and other public improvements within the City. The bon are special limited obligations of the Authority payable solely from revenues, consisti primarily of base rental payments paid by the City. The variable interest rate on the bon re reset on a bi-weekly basis. I a In conjunction with the Bonds, the Authority executed a rate cap agreement December 2, 2002, (the Agreement) with JPMorgan Chase (Counterparty) to minimize cle service cost on the 2002 Lease Revenue Bonds (the Bonds) by setting a cap on the intere rate on the Bonds. Under the Agreement, the Counterparty will pay the Authority an amou equal to the product of: (i) the amount by which the floating rate exceeds 4.5%, (ii) t notional principal amount and (iii) the actual number of days in the calculation i.^ i# divi by 365 days. The Agreement is for a notional amount equal to the outstanding princip amount of the Brinci onds and will decline as the ppal amount declines. The Agreeme terminated on January 1, 2011 37 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 5: Long -Term Liabilities (Continued) 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. Payments and Associated Debt As of June 30, 2015, 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. Fixed Rate Debt Year Ending June 30 Principal Interest Total 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 460,000 397,306 857,306 2021-2025 2,655,000 1,647,275 4,302,275 2026-2030 3,345,000 1,012,825 4,357,825 2031-2035 2,315,000 218,975 2,533,975 Totals $ 10,420,000 $ 5,050,555 $ 15,470,555 Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $602,690 at June 30, 2015, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Net Pension Liability See Note 8 detailing the net pension liability. The total liability at June 30, 2015, was $3,207,669. 38 NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) JUNE 382O15 Note 6: 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 omat 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. CJP|Ahas temporarily deferred the payment on retrospective deposits owed tothe Authority bymembers. 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 otJune 30. 2015. had a cumulative refund due of $189.142 no|otod to the General and Automobile Liability program. Optional Payment Plans If the City has a cumulative amount due to CJPIA and when retrospective deposit payments resume as indicated mbove, members will have the opportunity to select from a variety of optional payment plans. Discounts under the incentive pian are available to members choosing tovoluntarily accelerate payment during the deferral period. After the de#arne| 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 oflonger financing terms. Retrospective balances will change annually. Retrospective balances will change with each annual computation during the payment deferral period. Member balances may inonasne 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. Converoe|y, if claim development is favorable then subsequent retrospective adjustments could potentially result in refunds tothe member. More information on the CJPIA retrospective balances can be found on the CJPIA website at CJP|A.org. The City of Diamond Bar is a member of the CALIFORNIA JOINT POWERS INSURAN AUTHORITY (Authority). The Authority is composed of 118 California public entities and #b] seq. The purpose of the Authority is to arrange and administer programs for the pooling self-insured losses, to purchase excess insurance or reinsurance, and to arrange for gro purchased insurance for property and other lines of coverage. The California JPIA beg covering claims of its members in 1978. Each member government has an elected officlia its representative on the Board of Directors. The Board operates through a nine-memb Executive Committee. 39 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 7: Liability, Property and Workers' Compensation Protection (Continued) a. Self-insurance Programs of the Authority no] CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30 2015 Note 7: Liability, Property and Workers' Compensation Protection (Continued) The City ofDiamond Bar participates in the pollution legal liability insurance program which is available through the Authority, The policy covers sudden and gradual pollution of scheduled prmpedy, stnyebs, and storm drains owned by the Qb/ of Diamond Bar. Coverage is on a claims -made basis. There is a $50,000 deductible. The Authority has a limit of$5O million for the 3 -year period from July 1. 2014 through July 1, 2017. Each member of the Authority has a $10 million sublimit 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 ofDiamond Bar property iscurrently insured according toa schedule ofcovered property submitted by the City of Diamond Bar to the Authority. City nfDiamond Bar property currently has all-risk property insurance protection in the amount of $34,405,464. There is o $5.000 deductible per occurrence except for non -emergency vehicle insurance which has u $1.000 deductible. Premiums for the coverage are paid annually and aro not subject toretrospective adjustments. Earthguake and Flood Insurance The City ofDiamond 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. Then* 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 yeam, 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 in2U14-15. 41 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Pension Plans Plan Description All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 10 years of service. The death benefit is one of the following: The Optional Settlement 2W Death Benefit or the Lump Sum Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The Plans' provisions and benefits in effect at June 30, 2015, are summarized as follows: Hire dates Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a percentage of eligible compensation Required employee contribution rates Required employer contribution rates * Miscellaneous plan is closed to new entrants. Contributions Miscellaneous* Misc. PEPRA Prior to January 1, January 1, 2013 and 2013 thereafter 2% @55 2% @62 5 years of service 5 years of service monthly for life monthly for life Minumum 50 yrs Minumum 52 yrs 1.425% - 2.418%, 1.000% - 2.500%, 50 yrs - 63+ yrs, 52 yrs - 67+ yrs, respectively respectively 6.891% 6.308% 10.282% 6.250% Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2015, the employer contributions recognized as a reduction to the Net Pension Liability for each Plan were $359,021 and $6,867 for the Miscellaneous Plan and the Miscellaneous PEPRA Plan, respectively. 42 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Pension Plans (Continued) Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2015, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows: Miscellaneous PEPRA Total Net Pension Liability Proportionate Share of Net Pension Liability $ 3,207,627 'r, 3,207,669 The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013, rolled forward to June 30, 2014, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014, was as follows: Proportion - June 30, 2013 Proportion - June 30, 2014 Change - Increase (Decrease) Miscellaneous Miscellaneous PEPRA 0.13376% 0.12979% -0.00397% 0.00000% 0.00000% 0.00000% For the year ended June 30, 2015, the City recognized pension expense of $234,745. At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 43 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 1 2015 a • Actual Earningson Pension Plan Investments Adjustment due to Difference Proportions Change i employer's proportion • differences between employer's contributions and the • • • •••.'t •4 contributions Current year contributions occurred after the measurement date of i 2014 SubTotal . •..9.nd Actual Earnings on Pension �. i.. .i. Adjustment due to Difference in Proportions Change in employer'sproportion • differences between employer's contributions and the contributions Current year contributions that occurred after the measurement date of June 30, 2014 SubTotal Deferred Outflows of Deferred Inflows of Resources Resources $ - $ 1,077,911 92,963 65,335 • 484,641 $ 1,143,246 M $ 14 :i 11,875 - $ 18,735 $ 594 $ 503,376 1,143,840 ills •. i . ♦ '. •: i '. i • ' • 11'. . i ' • � � r. 44 CITY OF DIAMOND BAR NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 Note 8: Pension Plans (Continued) Miscellaneous Plan PEPRA Plan Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014, total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.50% 2.75% Varies by Entry Age and Service 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CalPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on CaIPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. 45 Deferred Year ended Outflows/(Inflows) of June 30: Resources 2016 $ (253,471) 2017 (253,471) 2018 (260,111) 2019 (283,230) Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014, total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.50% 2.75% Varies by Entry Age and Service 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CalPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on CaIPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. 45 Deferred Year ended Outflows/(Inflows) of June 30: Resources 2016 $ 1,594 2017 1,594 2018 1,635 2019 1,443 Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. The June 30, 2013 and the June 30, 2014, total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table (1) Post Retirement Benefit Increase Entry Age Normal in accordance with the requirements of GASB Statement No. 68 7.50% 2.75% Varies by Entry Age and Service 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CalPERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter (1) The mortality table used was developed based on CaIPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. 45 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 0 - • N ISIMM I M 14AMORUTRA AM11RAR 1 ILI! LIR The discount rate used to measure the total pension .• was 7.50 percent. To determi whether the municipal bond rate should be used in the calculation of a discount rate for ea plan, CalPERS stress tested plans that would most likely result in a discount rate that wou be • from the actuarially assumed discount rate. Based on the testing, none of t tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequa • the use • the municipal bond rate calculation is not necessary. The long term expect discount rate of 7.50 percent is applied to all plans in the Public Employees Retirement Fun The stress test results are presented in a detailed report called "GASB Crossover Testi Report" that can be obtained at CalPERS'website under the GASB 68 section. According to Paragraph 30 of Statement 68, the long-term discount rate should determined without reduction for pension plan administrative expense. The 7.50 perce investment return assumption used in this accounting valuation is net • ,• expenses. Administrative expenses are assumed to be 15 basis points. An investment retu excluding administrative expenses would have been 7.65 percent. Using this lower discou ji 46 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 0 - I Asset Class New Strategic Allocation Real Return Years 1 - 10 (1) Real Return Years 11+ (2) Global Equity 47.0% 5.25% 5.71% Global Fixed Income 19.0 0.99 2.43 Inflation Sensitive 6.0 0A5 3.36 Private Equity 12.0 6.83 6.95 Real Estate 11.0 4.50 5.13 Infrastructure and Forestland 3.0 4.50 5.09 Liquidity 2.0 (0.55) (1.05) 161EMI Discount Rate - 1% Current Discount Rate Discount Rate +1% (6.50%) (7.5%) (8.5%) Plan's Net Pension Liability/(Assets) $ 5,715,000 $ 3,207,627 $ 1,126,746 Plan's Net Pension $ Liability/(Assets) Discount Rate - 1% Current Discount Rate Discount Rate +1% (6.50%) (7.5%) (8.5%) 75 $ 42 $ Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. See CaIPERS website for .it itiona- information. 47 15 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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 witl�, parameters of GAS13 Statement 45. The ARC represents a level of funding that, if paid on ar 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. The City sets its monthly contribution rates for health insurance on behalf of all eligib retirees according to the PERS Health Program's statutory minimum ($112/month calendar 2013 and $115/month for calendar 2014, increased in all future years according the rate of medical inflation). The City pays a 0.36% of premium administrative charge behalf of all retirees. The City is currently funding this OPEB obligation on a pay-as-you-�# basis usually using available resources in the general fund. For the year end( June 30, 2015, the City paid $6,635 in health care costs for its retirees and their coverE) PERS Health Program: I Annual required contribution $ 85.299 Interest onnet OPEBobligation 7.382 Adjustment toannual required contribution Fiscal Year Annual OPEBcost (mxponoa) 73.775 Contributions made 6,635 Increase innet OPE8obligation 67.140 Net OPEBobligation -boginningofyear 389104 Net 0PEBobligation ' end ofyear $ 436,244 Three -Year Trend Information For fiscal year 2015, the City's annual OPEB cost (expense) $73,775 was equal to �he AR, Information on the annual OPEB costs, the percentage of annual OPEB cost contril buted the plan, and the net OPEB obligation is only available for two fiscal years, as present 48 Percentage of Fiscal Year AonuudOPEB Actual Annual OPEBCosts Net OPEB Ended Costs Contributions Contributed Obligation 6/30/13 $ 72.644 $ 8.190 11.2796 $ 306.687 6/30/14 70.389 7.972 11,33% 309.104 6/30/15 73'775 8'635 8.09Y6 436'244 48 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 101 we r; re wN. M r 17 ro I artre. Actuarial valuations of an ongoing plan involve estimates of the value of reported amoun," and assumptions about the probability of occurrence of events far into the future. Exampil include assumptions about future employment, mortality, and the healthcare cost treno Amounts determined regarding the funded status of the plan and the annual requir I contributions of the City are subject to continual revision as actual results are compared wi past expectations and new estimates are made about the future. The schedule of funding progress below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The information is as of the latest actuarial valuation. Actuarial Actuarial Actuarial Percent of Type of Valuation Value of Accrued Funded Covered Covered Interesl Valuation Date Assets Liability Ratio Payroll Payroll Rate Actual 7/1/2011 $ - $502,013 0.0% $ 3,959,573 12.68% 5.00% Actual 7/1/2014 - 596,261 0.0% 4,293,708 13.89% 5.00% Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive pill (the plan as understood by the employer and the plan members) and include the types benefits provided at the time of each valuation and the historical pattern of sharing of bene costs between the employer and the plan members at that point. The actuarial methods a assumptions used include techniques that are designed to reduce the effects of short -ter volatility in actuarial accrued liabilities and the actuarial value of assets consistent with t long-term perspective of the calculations. I 49 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 0 1=0 ail 17-127MINTly.r1reldmilres-01 Integrated Waste Management $ 1.189.522 Beverage Center Recycling 44.211 Used Oil Block Grant 14.525 Park and Facility Development 159.940 CDBG 7 PEG Fees 94,317 Total 1,482,522 Restricted for Public Safety: COPS 140.350 CLEEP 31,578 Total 171,928 Restricted for Public Works: State Gas Tax 774.588 Proposition &Transit 482.598 Proposition CTransit 404.804 Traffic Improvement 1.330.925 Sewer Mitigation 108.251 Measure RLocal Return 717.620 Transportation Grant 363 Waste Hauler 122,978 Total 3,862,123 Restricted for Capital Projects: Air Quality Improvement 207205 Total 207205 Restricted for Debt Sen/ice: 3 Total Restricted Funds 5,723,781 The City is presently involved in other matters of litigation that have arisen in the norm tion w course of the City's business. City management believes, based upon consulta t] City Attorney, that these cases, in the aggregate, are not expected to have a mated adverse financial impact on the City. I K11 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 rilprA11111F -lip Expenditures as of Remaining P June 30, 2015 Commitments Park Improvements $ 40,336 $ 72'057 Street Improvements 36.457 1.683.047 Traffic Management Improvements - 97.780 Miscellaneous Improvements 634,393 1786806 Beginning Net Position has been restated by $4,016,942 related to the accrued pensior liability. This restatement is a result of the new Governmental Accounting Standards Boar4. Statement No. 68. 51 52 The General Fund has been classified as a major fund and is used to account for resources traditional associated with government, which are not legally or by sound financial management to be acco in another fund. I 53 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. Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). 54 GENERALFUND YEAR ENDED JUNE 30,2015 55 Variance with Final Budget Budget Amounts Actual Pnau*e Original Final Amounts (Negative) Budgetary Fund Balance, July 1 *1n.rso.400 $ 19.762,450 $19.762.450 $ Resources (Inflows): ramm 10.478.087 10.403.109 10.730.234 327.125 Licenses and permits 3.634.1e7 4.0e1.557 5.022.61e 931.061 Intergovernmental 5,258.348 5471,414 5,471,410 (4) Charges for services 1,828,413 1,82*,613 1760,404 (6e,209 Use ufmoney and property 127,000 174,200 225,820 51,620 Fines and forfeitures 557.000 565.000 523.145 (41.855) Miscellaneous 211.225 150.075 136.786 (13,289 Transfers in 1,540,5431,340,5431,278,249 Amounts Available for Appropriations _-43&397,253 43�87,961_ _44,911,126- 1,123L155_ Charges mAppropriation (omnvw): General government City Council 171,2e3 171.283 158.007 13.27* City Attorney 285,000 240.000 233.771 6.22e cuyManager/o|om 963,569 1.065.56e 966,802 98,767 Finance 576.927 603.69e 603.6ee Human resources 2ee.2e2 30e.7e2 265.e48 43.944 Information systems 883.440 917.710 917.710 General government 344.850 347.e50 327.179 20.e71 Public information 60e.708 620,760 5e0.64/ 30.113 Civic Center 518028 543028 526829 1619e Subtotal general government 4,641,097_ 4,819,690_ 4,590,491_ 229,199 Public safety Law Enforcement 6.129.240 6.130.150 5.727.017 403.133 Fire Protection 7.500 7,500 7,359 141 Animal Control 140.000 1*0.000 121.330 18.670 Emergency preparedness 573e0 oraan 53713 uarr Subtotal public safety 6,334,130L 6,335,040 5,909419. 425,621_ Community development Comm. ne".aPl. Adm. 5*5.143 598.843 551.797 47.046 Building and Safety 707.e57 1.002.218 1.002.218 meigh.|mprv. 302.e15 306.035 285.385 20.650 E0000vo. 315,243 392,570 195,868196.702 Subtotal community development 1�20,958- 2,299,666- 2,035,268_ 264,398� Parks, recreation, and culture Comm. emo . Adm. 421.17e 43e.e76 421.384 15.5e2 Diamond Bar cx,. e81.881 978,639 e27.e72 50.667 Park Operations 1.0e6.523 1.130.e85 1.057.516 73.169 neomauun 1,943,380 1,952,287 1,738,102 z14 1o* Subtotal parks, recreation, and culture 4,442,960L __-4,498J587 4,144,974 353,613_ Highways and streets Public Works 804.672 857.710 692.247 1**.463 Engineering 406.786 *or.nuo 334.076 133.252 eoaumaint. 1.586.151 1.487.673 1.1e0.520 2e7.1*3 LanuooapoMaint. 230757 zanrur 291 ,654 44,103 Subtotal highways and streets 3,228,366- __-3,148\468 2,508,497 639,971� Capital outlay ane.*oo 377.e4e 252.446 125.500 Transfers out 39760e8 5105534 3237475 18e8059 Total Charges mAppropriations -�24,6£9,279 --26,584,931_ -�22,678,570- --�3,90±,361- BvogetaryFumuBa|ancn.xvne3o 55 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Proportion ofthe Net Pension Liability Miscellaneous Plan 0.05155% Miscellaneous -PEPRAPlan 8.00000% Proportionate Share ofthe Net Pension Liability Miscellaneous Plan 3.287.027 Miscellaneous -PEPRAPlan 42 Peynd| Miscellaneous Plan 4,286.252 Miscellaneous - PEPRA Plan 109,864 Proportionate Share of the Net Pension Liability as Percentage afCovered-Employee Payroll Miscellaneous Plan 75.1896 K4ioue||mneoua PEPRAP|an 0.04% Total Miscellaneous Plan Fiduciary Net Position aouPercentage ofthe Total Pension Liability 8115% (1)Historical information iorequired only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. 56 SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 Actuarially Determined Contribution Miscellaneous Plan $ 381.678 Miscellaneous -PEPRAPlan 11.875 Contribution inRelation k/the Actuarially Determined Contribution (403,553) Contribution Deficiency (Excess) $ Payroll $ 5.538.273 Contributions aeaPercentage ofCovered-Employee Payroll 7.29% (1) Historical information ierequired only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only one year is shown. Methods and assumptions used Aodetermine contribution rates: Single and Agent Employers Amortization method Remaining amortization period Assets valuation method Inflation Salary Increases Investment rate ofreturn Retirement age Mortality 57 Entry age norma Straight Line 3.8 Years Building -Block Method 2.75% Varies byEntry Age and Service T3O%net ofpension plan investment expense, including inflation Minimum 50 years CITY OF DIAMOND BAR COMBINING BALANCE SHEET N0NMAJOR GOVERNMENTAL FUNDS JUNE n0 2015 Liabilities and Fund Balances: Accounts payable 52.132 * Special Revenue Funds - $ 3.314 Accrued liabilities ' 3.142 6.763 Integrated 11,490 Unearned revenues - ' ' Waste ' State Gas Tax Proposition Proposition Transportation Management Fund Transit Fund Transit Fund Grant Fund Fund Assets: Retentions payable ' - - - Pooled cash and investments $ 774.586 $ 437.930 $ 401.857 $ - $ 1.050.095 Receivables: Deferred Inflows ofResources: Accounts Unavailable revenues - - - - 134.231 Notes and loans - - - - - Due from other governments - - - 04.983 - Restricted assets: Restricted for: Cash and investments with fiscal agents - - - - - 1.168.522 Public safety - - - - Liabilities and Fund Balances: Accounts payable 52.132 * 50.390 $ - $ 3.314 Accrued liabilities ' 3.142 6.763 - 11,490 Unearned revenues - ' ' ' ' Due toother governments Due Vnother funds - - ' 04.620 - Retentions payable ' - - - ' Total Liabilities - 35,334 57,153 64,620 14,804 Deferred Inflows ofResources: Unavailable revenues - - - - - Total Deferred Inflows of Resources - - - - - Fund Balances: Restricted for: Community development projects - - - - 1.168.522 Public safety - - - - - Public works 774.505 402.590 404.804 363 - Capital Projects - - - - - Debt service - - - - - Total Fund Balances 774,586 402,596 404,804 363 1,169,522 Total Liabilities and Fund Balances $ 774,586 $ 437,930 $ 461,957 $ 64,983 $ 1,184,326 58 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Retentions payable 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 Total Fund Balances Special Revenue Funds 8,417 14,678 8,417 14,678 44,211 1,330,925 108,251 - - - 207,205 1,330,925 108,251 207,205 44,211 59 108,251 $ 207,205 Beverage Traffic Sewer Air Quality Center Improvement Mitigation Improvement MTA Grant Recycling Fund Fund Fund Fund Grant Fund $ 1,339,342 $ 108,251 $ 188,843 $ $ 44,211 18,362 14,678 $ 1,339,342 $ 108,251 $ 207,205 $ $ 58,889 8,417 14,678 8,417 14,678 44,211 1,330,925 108,251 - - - 207,205 1,330,925 108,251 207,205 44,211 59 108,251 $ 207,205 CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 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 Retentions payable 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 Total Fund Balances Park and Used Oil Facility Block Grant Development Fund Fund CDBG Fund COPS Fund CLEEP Fund $ 17,060 $ 159,940 $ $ 140,350 $ 31,578 - 385,639 91,456 36,354 $ 17,060 $ 251,396 $ 421,993 $ 140,350 $ 31,578 2,535 $ $ 23,012 $ - 580 385,639 11,055 - 1,700 2,535 421,986 91,456 91,456 14,525 159,940 7 - - - - - 140,350 31,578 14,525 159,940 7 140,350 31,578 17,060 $ 251,396 $ 421,993 $ 140,350 $ 31,578 We CITY OF DIAMOND BAR COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2015 Liabilities and Fund Balances: Liabilities: Accounts payable $ 127,569 $ 11,547 $ Special Revenue Funds - - Unearned revenues Landscape Measure R - Due to other funds - Maintenance Local Return PEG Fees Waste Hauler Deferred Inflows of Resources: District Fund Fund Fund Fund Assets: Fund Balances: Restricted for: Pooled cash and investments $ 119,597 $ 717,620 $ 81,012 $ 92,435 Receivables: Capital Projects - - - Debt service - - - - Accounts - - 24,852 30,543 Notes and loans - - - Due from other governments 7,972 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 127,569 $ 717,620 $ 105,864 $ 122,978 Liabilities and Fund Balances: Liabilities: Accounts payable $ 127,569 $ 11,547 $ Accrued liabilities - - Unearned revenues - Due to other governments - Due to other funds - Retentions payable - - Total Liabilities 127,569 11,547 Deferred Inflows of Resources: Unavailable revenues - - Total Deferred Inflows of Resources - - Fund Balances: Restricted for: Community development projects - 94,317 Public safety - - - Public works - 717,620 122,978 Capital Projects - - - Debt service - - - - Total Fund Balances 717,620 94,317 122,978 Total Liabilities and Fund Balances 127,569 $ 717,620 $ 105,864 $ 122,978 61 7717-3-Fam am JUNE 30,2015 Debt Service Funds Liabilities and Fund Balances: Accounts payable Public Total Accrued liabilities Financing Governmental Unearned revenues Authority Funds Assets: - 505.038 Pooled cash and investments $ - $ 5.704.807 Receivables: - 1,700 Accounts - 109.026 Notes and loans - 305.039 Due from other governments - 233.805 Restricted assets: Cash and investments with fiscal agents 3 3 Total Assets 3 $ 6,573,880 Liabilities and Fund Balances: Accounts payable 250.559 Accrued liabilities - 21.875 Unearned revenues - 23.095 Due toother governments - 505.038 Due tnother funds - 75.075 Retentions payable - 1,700 Total Liabilities - 758,643 Deferred Inflows ofResources: 3 57237*1 Unavailable revenues - 91.450 Total Deferred Inflows of Resources - -------9t456 Fund Balances: Restricted for: Community development projects - 1,482.522 Public safety - 171.920 Public works - 5.062.125 Capital Projects - 207.205 Debt service n 8 Total Fund Balances 3 57237*1 Total Liabilities and Fund Balances �� 63 COMBINING STATEMENT OF REVENUES, NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use ofmoney and property 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 (De5oienny)ofRevenues Over (Under)Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) 450,000 300,040 80,964 1,328,318 628,951 - 1,860,283- 366,040 1,533,489100,12661 154,964 - - - - Net Change inFund Balances 108126 Integrated Fund Balmnnoa, Beginning of Year 800 302,4701,064,342 Waste State Gas Tax Proposition Proposition Transportation Management Fund Transit Fund Transit Fund Gent Fund Fund 1.525.721 982.127 825.931 613.028 964,919 511,513 7,768 9,491 1,533,4891,960,40961 521004 450,000 300,040 80,964 1,328,318 628,951 - 1,860,283- 366,040 1,533,489100,12661 154,964 - - - - Net Change inFund Balances 108126 - 21,159 Fund Balmnnoa, Beginning of Year 800 302,4701,064,342 303 1,148,363 Fund Balances, End ofYear 64 COMBINING STATEMENT OF REVENUES, NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2015 65 Special Revenue Funds Beverage Traffic Sewer Air Quality Center Improvement Mitigation Improvement MTA Grant Recycling Fund Fund Fund Fund Grant Fund Revenues: Taxes $ $ $ $ $ Licenses and permits 329.974 Intergovernmental 71.118 98.231 Charges for services 107.520 Use ofmoney and property 8,150 731 1,016 174 227 Total Revenues 338,124 108,251 72,132 98 227 Expenditures: Current: General government Public safety Community development 458 Parks and recreation Public works 1.785 Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures 1,795 - - - 459 Excess (De5oienny)ofRevenues Over (Under)Expenditures 336,329 108,251 72,132 98,405 Other Financing Sources (Uses): Transfers in 251.707 28.526 44.443 Transfers out Total Other Financing Sources (Uses) 251,767 - 44,443 Net Change inFund Balances 588,096 108,251 71,291 44,211 Fund Balances, Beginning ofYear 742,829 - 135,914 ' - Fund Balances, End cf Year 65 COMBINING STATEMENT OF REVENUES, NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use ofmoney 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 (De5oienny)ofRevenues Over (Under)Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Park and Used Oil Facility Block Grant Development Fund Fund CDBG Fund COPS Fund CLEEP Fund 15,753 381.679 280,694 106,230 88 104 1,270301 15,841 361,843 280,694 107,500 301 4,985 17,337 121,320 1,340 4,799 17,337- 121,326 361,843 159,368101,167 10,021 250008 - - 16,021- Net Change inFund Balances 14,525 134,223 5 35,679 Fund Balances, Beginning of Year - 25,717 2 104,671 36,076 Fund Balances, End of Year �� COMBINING STATEMENT OF REVENUES, NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use ofmoney and property 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 (De5oienny)ofRevenues Over (Under)Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change inFund Balances Fund Balances, Beginning ofYear Fund Balances, End cf Year Landscape Measure Maintenance Local Return PEG Fees VVeete Hauler District Fund Fund Fund Fund $ 550.107 $ $ 122.385 $ 122.173 517.347 820 503 550,107 622,902 122,711 122,736 67 747,521 48,791 747,521 48,791 (197,414) 622,902 73,920 122,736 197,414 20.397 - (185,639) 94,317 21,598 903,259 - 101,380 COMBINING STATEMENT OF REVENUES, NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2015 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use ofmoney and property 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 (De5oienny)ofRevenues Over (Under)Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change inFund Balances Fund Balances, Beginning ofYear Fund Balances, End cf Year �� Debt Service Funds Total Governmental Funds $ 672,492 452.147 5,508,657 1.583.352 47&30 8,265,084 846,656 4,650,291 (846,650) 3,614,79A 846,649 1,655,21 - (5,012A,08 4 5,465,860 AI "4SIM, Wo 01kTrax-MIM '611P1-G1ff'r9KT SIASTATE GAS TAX FUND YEAR ENDED JUNE 30 ,2015 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Use of in and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 900,470 $ 900,470 $ 900,470 $ 1,531,645 1,531,645 1,525,721 (5,924) 3,000 It 7,768 2,268 2,435,115 2,437,615 2,433,959 (3,656) 2,250,487 2,377,130 1,659,373 717,757 2,250,487 2,377,130 1,659,373 717,757 Budgetary Fund Balance, June 30 $ 184,628 $ 60,485 $ 774,586 $ 714, VIMAZA :_I Z 101:3 BPI I 10 lmlljffiv�� Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Charges for services Use ofmoney and property Amounts Available for Appropriations Charges toAppropriation (Outflow): General government Parka, recreation and culture Highways and Streets Capital outlay Transfers out Total Charges to Appropriations all Final Budget Budget Amounts Actual Positive Original Final Amounts 982.329 982.329 092.127 9.798 1.200.000 1.200.000 984.919 (235.081) 8,200 3500 3,363 2,492,999 2,488,299 2,262,879 (225,420) 450.000 450.000 450.000 - 91.700 91.700 80.984 10.736 1.680.840 1.670.582 1.329.319 341.263 12.500 12.580 - 12.500 230800 230000 - 230080 2,464,840 2,454,782 1,860,283 594,499 all AI "4SIM, Wo 01kTrax-MIM \\ \\#_Z 101: 3 s\\\/\lwiljffil�� Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental ©e of money and pr„®. Amounts Available for Appropriations Charges to Appropriation (Outflow): Highways and Streets ,.«e<.< Total Charges to Appropriations � 71 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,064,342 $ 1,064,342 $ 1,064,342 $ - 814,816 814,816 825,931 11,115 8,400 8,400 8,643 243 1,887,558 1,887,558 1,898,916 11,358 790,934 700,992 628,951 72,041 1,023,990 1,320,178 865,161 455,017 i,814,924 2,021,170 1,494,112 527,058 $ 72,634 $ (133,612) $ 404,804 $ 538,416 71 AI "4SIM, Wo 01kTrax-MIM �\\\�� . . \\#.. Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations W-RIMIL11 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 363 $ 363 $ 363 $ Budgetary Fund Balance, June 30 « 362 $ 362 $ 363 $ 1 7 AI "4SIM, Wo 01kTrax-MIM OX »»±f ?»181:4 IM111 0 Malow'40 Budgetary Fund Balance, July 1 Resources (inflows): Charges for services Use oar: z«•„». Amounts Available for Appropriations Charges to Appropr&<.,( «\+« Community development Transfers out Total Charges to Appropriations 7 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,148,363 $ 1,148,363 $ 1,148,363 $ - 490,000 490,000 511,513 21,513 7,500 7,500 9,491 1,991 1,645,863 1,645,863 1,669,367 23,504 461,537 466,487 366,040 100,447 99,698 140,162 133,805 6,357 561,235 606,649 499,845 106,804 1,084,628 $ 1,039,214 $1,169,522 $ 130,308 7 Budgetary Fund Balance, July 1 Resources (inflows): Licenses and permits Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Highways and streets Transfers out Total Charges to Appropriations 74 Final Budget Budget Amounts Actual Positive Original Final Amounts 154.730 173.730 329.974 156.244 2.000 5.000 8.150 3.150 - 250000 251,767 1,767 899,559 1,171,559 1,332,720 161,161 131.818 261.428 1.795 259.831 188730 188,730 - 188,730 319,748 450,156 1,795 448,361 74 Budgetary •: Balance, July 1, as restated Resourcesa Chargesi Use of s - and property Amounts Available ...f........ f Appropriations 9 BudgetFinal Budgeta Positive Original Final Amounts (Negative) 75 32,400 107,400 107,520i - 500 731 231 32,400 107,900 is ,251 351 32,400 107,900 f f Budgetary Fund Balance, July i Resources (inflows): Intergovernmental Use ofmoney and property Transfers in Amounts Available for Appropriations Charges bzAppropriation (Ou|f|om/): Community development Capital outlay Transfers out Total Charges to Appropriations Final Budget Actual Positive Amounts (Negative) 85,000 85,000 71.116 6.110 750 750 1.018 266 - - 28,526 28,526 201,664 201,664 236,572 34,908 57.350 57.350 - 57.350 17.500 19.215 - 18.215 89000 91,600 29,367 62,233 163,850 168,165 29,367 138,798 76 CITY OF DIAMOND BAR BUDGETARY COMPARISON SCHEDULE MTA GRANT FUND YEAR ENDED JUNE 30, 2015 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) 450,000 450,000 450,000 50 450,050 98,231 (351,769) 174 124 98,405 (351,645) 450,000 450,000 98,405 351,595 450,000 450,000 98,405 351,595 Budgetary Fund Balance, June 30 $ - $ 50 $ - $ (50) 77 AI "4SIM, Wo 01kTrax-MIM Vd Zril M8 0 1 U4 NMI I 10 IMWIIJWW'41���� Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Use of money and property Transfers in Amounts Available for Appropriation� Charges to Appropriation (Outflow): Community development Total Charges to Appropriations Af 78 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 14,744 14,744 - (14,744) 200 150 227 77 20,000 44,443 44,443 - 34,944 59,337 44,670 (14,667) 14,744 38,500 459 38,041 14,744 38,500 459 38,041 $ 20,200 $ 20,837 $ 44,211 $ 23,374 78 AI ]"4SIM, Wo 01kTrax-MIM MIMI =MMI I wffi�� 79 Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ Resources (inflows): Intergovernmental 16,021 15,753 15,753 - Use of money and property - 50 88 38 Transfers in - 16,021 16,021 - mounts Available for Appropriations 16,021 31,824 31,862 38 Charges to Appropriation (Outflow): Community development 16,021 31,774 17,337 14,437 Total Charges to Appropriations 16,021 31,774 17,337 14,437 Budgetary Fund Balance, June 30 $ - $ 50 $ 14,525 $ 14,475 79 AI "4SIM, #■#?2»»*m ?#T*=y?#32«�2»!:2 *.-r+ WOMAN=« G #!?© «<# <?±±?» # #»<? » 2<t <+:< Budgetary Fund Balance, July , Resources (inflows): Intergovernmental Use of money and property » Transfers in Amounts Available for Appropriations Charges to Appropriation „O «\+«\ Transfers out Total Charges to Appropriations 91�=lr Budgetary » rd Balance, w,e <* $ 135,070 ` 483, t ::9,940 E -M Final Budget Budget Amounts Actual Positive Original Final Amounts w>.z»v 147,320 395,000 361,679 « ». :000 100 164 ,* 384,615 634,615 250,000 (384,615) 558,652 1,055,432 637,560 <:< I<» 423,582 572,220 477,620 9¥600 2358 «* 47760 94,600 Budgetary » rd Balance, w,e <* $ 135,070 ` 483, t ::9,940 E -M AI "4SIM, #■#?2»»*m ?#T*=y?#32«�2»!:2 Budgetary Fund Balance, Resources (Inflows): Intergovernmental Amounts Available for Appropriations ?»w+«:4Appropriation „ d&e< Community deveopme: Transfers o OriginalTotal Charges to Appropriations AMM�f Final Budget Budget Amounts Actual Positive Final Amounts ,»e.«»v 336,298336,298 280,694 (55,604) 336,300 ?<»<*£ 280,696 (55,604 130,268 130,268 121,326 894 4,295 276,703 159,363 117,340 354,563 �406,971 � 280,689 ?6<8 Budgetary Fund BalanceJune 3+ $ (1 8,263) : «t;<» t 7 < 2063 81 Budgetary Fund Balance, July 1 Resources (inflows): Intergovernmental Use mfmoney and property Amounts Available for Appropriations Charges toAppropriation (Outf|om/): Public safety Capital outlay Transfers out Total Charges to Appropriations �� Final Budget Budget Amounts Actual Positive Original Final Amounts 100.000 108.000 106.230 6.230 1000 1008 1,270 270 205,671 205,671 212,171 6,500 6.508 6.508 4.985 1.515 5.000 5.008 1.348 3.652 189462 109,462 65,488 43,974 120,962 120,962 71,821 49,141 �� :1' =i`.` i&ii UALIFOMMA LATT HIFIVAULIML11 lr is YEAR ENDED JUNE 30,2015 Budgetary Fun• Balance, Resources (Inflows): Use of money and property Amounts Available for Appropriations --harges to Appropriation i • Capitaloutlay Total Charges to Appropriations 9 Final Budget Budget AmountsActual Positive Original Final Amounts(Negative) 200 200 301 101 36,276 36,276 36,377 101 10,000 10,000 4,799 5,201 10,000 [ i i C 4,799 5,201 Budgetary Fund Balance, June 30 . • 26,276 $ 31,578 $ 5,30;M 83 A i • a i iOX MIMANAIt I ResourcesBudgetary Fund Balance, July 1 •' Taxes Transfers in Amounts Available for Appropriations Charges • Appropriation (• i Highways and Streets Total to Appropriations Final •i- BudgetAmounts Positive Original Final a • •. a 4 � 554,000/ ii# 550,107 (3,893) 316,011 316,011197,414 (118,597) 870,011 i 1 90 870,011 896 . • ,305 870,011 896,826 . it 84 AI "4SIM, Wo 01kTrax-MIM #■#v#<±%�##T*\«\���}\`�� '\\.f\2��� \�\, % \\} \//\!\<, KK M ..... . .. .. \: /.�. \:r. 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 8 Final Budget Budget Amounts Actual Positive Origi» al Final Amounts (Negative) $ 903,259 $ 903,259 $ 903,259 $ - 611,120 611,120 617,347 6,227 5,500 5,500 5,555 55 1,519,879 1,519,879 1,526,161 6,282 1,459,391 1,451,171 808,541 642,630 1,459,391 1,451,171 808,541 642,630 $ 60,488 $ 68,708 $ 717,620 $ 648,912 8 '6IIPIii: 'r9KT PEG FEES FUND YEAR ENDED JUNE 30,2015 Budgetary Fund Balance, July 1 Resources (inflows): Taxes Use of money and property Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 100,000 100,000 1,000 300 101,000 100,300 122,385 22,385 326 26 20,397 20,397 143,108 42,808 85,000 85,000 48,791 36,209 85,000 85,000 48,791 36,209 Budgetary Fund Balance, June 30 $ 16,000 $ 15,300 $ 94,317 $ 79,017 M. AI "4SIM, Wo 01kTrax-MIM WEI '"V2 \:$ 9 NMI I ILI I M\IW41 Budgetary Fund Balance, July 1 Resources (inflows): Licenses and permits Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): Transfers out Total Charges to Appropriations 8 Final Budget Budget Amounts Positive Original —Actual Final Amounts (Negative) $ 101,380 $ 101,380 $ 101,380 $ 122,173 122,173 122,173 - 500 500 563 63 224,053 224,053 224,116 63 218,017 223,311 101,138 122,173 218,017 223,311 101,138 122,173 $ 6,036 $ 742 $ 122,978 $ 122,236 8 Budgetary Fund Balance, July 1 Resources (inflows): Tames Intergovernmental Transfers in Amounts Available for Appropriations Charges b»Appropriation (Outflow): Capital outlay Total Charges to Appropriations AFMI0��M E.M., Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 300,110 369,343 205,422 (163,921) 9,643,514 10,656,545 4,151,163_ (6,505,382) 9,854,985 10,937,249 4,267,946 (6,669,303) 9,943,624 13,615,038 4,339,507 9,275,531 9,943,624 13,615,038 4,339,507 9,275,531 E.M., AI ]"4SIM, Wo 01kTrax-MIM lie]- # IIID �' lil �i�. AFMI�- M Me Final Budget Budget Amounts Positive Original —Actual Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 4 $ 4 $ 4 $ - Resources (inflows): Use of money and property - - 6 6 Transfers in 848,406 848,406 846,649_ (1,757) Amounts Available for Appropriations 848,410 848,410 846,659 (1,751) Charges to Appropriation (Outflow): General government 1,500 1,500 - 1,500 Debt service: Principal retirement 365,000 365,000 365,000 - Interest and fiscal charges 481,906 481,906 481,656 250 Total Charges to Appropriations 848,406 848,406 846,656 1,750 Budgetary Fund Balance, June 30 $ 4 $ 4 $ 3 $ (1) Me I 1111i01T0,1011,4001"; COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2015 Governmental Activities - Internal Service Funds Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacement Maintenance Totals Assets: Current: Cash and investments Receivables: Accounts Prepaid costs Noncurrent: Capital assets - net of accumulated depreciation 11 rom, Liabilities: Current: Accounts payable krom, 1XVIfn Net Position: Investment in capital assets Unrestricted 110MILIMI 189,142 1,031 190,173 1,450 - - - 1,450 1,007,034 730,614 413,421 379,893 2,530,962 99,631 420,893 520,524 99,631 420,893 520,524 $ 1,007,034 $ 830,245 $ 834,314 $ 379,893 $ 3,051,486 $ 104,805 $ $ 104,805 104,805 104,805 - 99,631 420,893 - 520,524 1,007,034 730,614 308,616 379,893 2,426,157 1,007,034 830,245 729,509 379,893 2,946,681 $ 1,007,034 $ 830,245 $ 834,314 $ 379,893 $ 3,051,486 911 CITY OF DIAMOND BAR COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2015 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 Governmental Activities - Internal Service Funds Self Equipment Computer Building Insurance Replacement Equipment Facility & Fund Fund Replacement Maintenance Totals $ - $ - $ - $ 9,550 $ 9,550 - - - 9,550 9,550 198,935 - - - 198,935 - - 123,087 - 123,087 - 20,977 133,984 - 154,961 198,935 20,977 257,071 - 476,983 (198,935) (20,977) (257,071) 9,550 (467,433) 5,661 3,296 1,524 1,209 11,690 5,661 3,296 1,524 1,209 11,690 (193,274) (17,681) (255,547) 10,759 (455,743) 198,935 400,000 316,000 250,000 1,164,935 5,661 382,319 60,453 260,759 709,192 1,001,373 447,926 669,056 119,134 2,237,489 $ 1,007,034 $ 830,245 $ 729,509 $ 379,893 $ 2,946,681 91 COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2015 Governmental Activities - Internal Service Funds Cash Flows from Non -Capital Financing Activities: Cash transfers in Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Cash Flows from Investing Activities: Interest received Investing Activities and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Reconciliation of Operating Income to �et Cas Provided (Used) by Operating Activitie Operating income (loss) net cash provided (used) by operating activiti Depreciation (increase) decrease in accounts receivable (increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments W• ". 198,935 (35,227) 9,676 (413,705) 400,000 316,000 250,000 1,164,935 198,935 400,000 316,000 250,000 1,164,935 (56,148) (136,419) (56,148) (80,271) - (136,419) 5,661 3,296 1,524 1,209 11,690 5,661 3,296 1,524 1,209 11,690 (183,558) 347,148 202,026 260,885 626,501 1,000,000 383,466 211,395 117,977 1,712,838 730,614 $ 413,421 $ 378,862 $ 2,339,339 $ (198,935) $ (20,977) $ (257,071) $ 9,550 $ (467,433) 20,977 133,984 - 154,961 (189,142) - - 126 (189,016) (77) - - (77) 87,860 - 87,860 (189,219) 20,977 221,844 126 53,728 $ (388,154) $ - $ (35,227) $ 9,676 . L_J113,705L M Computer Building Self Equipment Equipment Facility & Insurance Replacement Replacement Maintenance Fund Fund Fund Fund Totals Cash Flows from Operating Activities: Insurance Premiums paid $ (388,154) $ $ - $ $ (388,154) Payments to suppliers (35,227) (35,227) Cash received from others 9,676 9,676 Cash Flows from Non -Capital Financing Activities: Cash transfers in Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets Cash Flows from Investing Activities: Interest received Investing Activities and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Reconciliation of Operating Income to �et Cas Provided (Used) by Operating Activitie Operating income (loss) net cash provided (used) by operating activiti Depreciation (increase) decrease in accounts receivable (increase) decrease in prepaid expense Increase (decrease) in accounts payable Total Adjustments W• ". 198,935 (35,227) 9,676 (413,705) 400,000 316,000 250,000 1,164,935 198,935 400,000 316,000 250,000 1,164,935 (56,148) (136,419) (56,148) (80,271) - (136,419) 5,661 3,296 1,524 1,209 11,690 5,661 3,296 1,524 1,209 11,690 (183,558) 347,148 202,026 260,885 626,501 1,000,000 383,466 211,395 117,977 1,712,838 730,614 $ 413,421 $ 378,862 $ 2,339,339 $ (198,935) $ (20,977) $ (257,071) $ 9,550 $ (467,433) 20,977 133,984 - 154,961 (189,142) - - 126 (189,016) (77) - - (77) 87,860 - 87,860 (189,219) 20,977 221,844 126 53,728 $ (388,154) $ - $ (35,227) $ 9,676 . L_J113,705L M RI INIZI I Lei it KI OMMMUR This part of the City of Diamond Bar's comprehensive annual financial report presents detai 'I information as a context for understanding what the information in the financial statements, no disclosures, and required supplementary information say about the government's overall financial health Contents: 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 Capacit — 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 oiTer 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 - 1i 93 City of Diamond Bar Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, Note: As allowed by GASB 34, the value of infrastructure placed in service was not included in the net assets until the fiscal year ended June 30, 2007. 94 2006 2007 2008 2009 2010 Governmental activities: Net investment in capital assets $14,593,935 $ 375,216,400 $ 370,949,296 $ 367,529,907 $ 377,940,738 Restricted for: Capital projects 3,323,474 3,446,872 2,912,276 3,526,991 2,260,872 Community development 1,296,806 1,013,495 889,176 568,280 725,667 Public safety 541,482 559,920 Public works Debt service 243,697 321,747 309,533 305,915 319,815 Unrestricted 29,461,178 34,072,884 36,236,504 34,554,084 34,215,610 Total governmental activities net position $ 48,919,090 $ 414,071,398 $ 411,296,785 $ 407,026,659 $ 416,022,622 Note: As allowed by GASB 34, the value of infrastructure placed in service was not included in the net assets until the fiscal year ended June 30, 2007. 94 Schedule 1 2011 2012 2013 2014 2015 $ 381,985,940 $ 382,660,310 $ 378,511,311 $ 372,068,596 $ 368,779,901 146,567 163,603 165,587 135,914 207,205 1,644,861 958,293 1,084,434 1,174,082 1,482,522 453,730 285,508 196,503 140,747 171,928 3,636,487 3,504,339 3,964,252 4,015,113 3,862,123 333,694 2 3 4 3 22,582,318 18,288,491 18,508,423 20,894,700 20,659,058 $ 410,783,597 $ 405,860,546 $ 402,430,513 $ 398,429,156 $ 395,162,740 95 Expenses: Governmental activities: General government Public safety Highways and streets Community development Parko, recreation and culture Interest onlong-term debt Total general expenses Program revenues: Governmental activities: Charges for services General Government Public safety Highways and streets Community development Parks, recreation and culture Operating grants and contributions Capital grants and contributions Total governmental activities program revenues General revenues: Taxes Property taxes Transient occupancy taxes Sales taxes Franchise taxes Othertaxes Unrestricted Motor vehicle inlieu Use ofmoney and property Other revenues Loss ondisposal ofcapital asset Total general revenues Restatement ofnet position Net position at end of year Source: City Finance Department City of Diamond Bar Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) FiscalTear Ended June 30,= 2006 2007 2008 2009 �Lom 5,418,005 4,876,435 4,944,729 5,396,083 5,526,099 5,240,568 14,019,550 12,034,669 13,931,211 12,287,325 2,759,718 2,292,757 2,251,196 1,959,303 1,624,547 3,737,071 4,779,588 5,188,977 4,950,687 5,091,215 423,320 498,042 392,548 177,633 57,948 5,281.308 0,988^824 4.307^074 5,588.818 4.358.895 707.272 262.541 225.553 132.262 131.033 28,414 537.068 032^880 590.375 685.262 1.555.903 3493.798 2.851.187 1.732.885 2.070.107 1,265.597 896,424 567.302 438.583 430.081 1.280.849 1.385.783 1.581.587 1.705.282 1.754.789 5,281.308 0,988^824 4.307^074 5,588.818 4.358.895 1,150 1,254,314 219,193 2,272,580 15,960,279 10.100.583 14.898.757 10.384.886 12.408.865 35.311.106 3.555244 3754.955 3,927.073 4/01.276 3,837.288 718.889 774^757 800.330 633.875 509.916 3.049.340 3.043.345 4.102.177 3.085.223 3.122.229 996.567 1.064.621 1.024.710 1.093.039 1.115.980 410.423 331.000 283.433 109.385 250.384 3.603.061 4.358.841 4.563.127 4.887.515 4.590.922 1.051.922 1.470.010 1.420.988 833.270 618.903 361.822 41.382 4.388 304.463 7.090 14.713.077 15.742.787 16.128.286 14.837.228 14.130.772 9.1 (885,096) 2011 2012 2013 2014 2015 5,591,049 6,104,982 5,831,227 5,627,026 5,929,156 10,619,860 11,248,137 10,197,098 10,599,386 10,225,922 1,969,540 2,126,906 1,980,646 2,346,073 2,587,504 5,153,264 5,559,427 5,591,916 6,463,192 6,300,920 72,592 848,976 487,369 477,201 466,662 3.085.378 4.392.858 4.024.537 4^203.830 4.443.705 118.010 247.248 180.379 770,908 587,081 558.544 491.831 502.948 559.008 523.145 2.400.272 2.555.000 2.004.053 2.071.741 5.530.084 955.380 1.006.971 1.198.808 1.413.094 2.463.932 1.820.400 1.753.585 1.689.497 1.804.189 1.758.219 3.085.378 4.392.858 4.024.537 4^203.830 4.443.705 40,779 1,242,636 090732 207,971 717,961 9,587,778 12,291,027 10,868,952 11,630,901 16,031,187 4.187.856 3.951.722 4.080.273 4.307.077 4.448.566 642.509 632.102 782.952 851.249 935,355 3.355.127 3.307.259 3.546.239 3.058.327 3.074.584 1.259.471 1.415.324 1.465.660 1.383.584 1.400.342 172.887 202.951 333.250 471.455 442.914 4.700.225 4,646.985 4,659.094 4.862.100 5.133,810 474.598 145.408 6.307 250.758 244.275 91.975 48.342 533.475 52.891 114.545 14,950,488 14,498,753 15,387,099 17,182,122 16,754,471 (5.239.025) (5.482.720) (4.775.188) (4.001.357) 750.520 416.022.622 410.783.597 405.860.546 402.430.513 398.429.156 559,669 1,345,156 (4,016,942) 97 a.*] 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 2,274,829 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: Special revenue funds 5,485,933 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund Capital projects funds (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 5,148,389 4,366,089 5,061,948 5,476,863 4,932,937 $31,562,005 $ 34,827,639 $ 37,991,462 $ 37,130,401 $ 35,730,035 2011 2012 2013 2014 2015 $ 41,451 $ 28,114 $ 26,331 $ 62,752 $ 75,887 4,500,000 4,500,000 Fiscal Year Ended June 30, 4,500,000 4,500,000 2006 2007 2008 2009 2010 General fund: 3,271,595 3,170,407 3,964,252 4,015,113 Reserved $ 1,310,172 $ 1,893,287 $ 1,864,387 $ 1,612,181 $ 1,955,477 Unreserved 25,103,444 28,568,263 31,065,127 30,041,357 28,841,621 Total general fund 26,413,616 30,461,550 32,929,514 31,653,538 30,797,098 All other governmental funds: Reserved 2,274,829 3,311,451 5,810,250 2,754,526 1,735,077 Unreserved, reported in: Special revenue funds 5,485,933 5,736,366 4,955,552 5,423,979 5,218,642 Debt Service Fund Capital projects funds (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 5,148,389 4,366,089 5,061,948 5,476,863 4,932,937 $31,562,005 $ 34,827,639 $ 37,991,462 $ 37,130,401 $ 35,730,035 2011 2012 2013 2014 2015 $ 41,451 $ 28,114 $ 26,331 $ 62,752 $ 75,887 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 16,726,964 12,616,200 13,010,385 15,199,698 17,656,659 3,271,595 3,170,407 3,964,252 4,015,113 3,862,123 21,268,415 17,144,314 17,536,716 19,762,450 22,232,546 750 1,644,861 958,293 1,084,434 1,174,082 1,482,522 453,730 285,508 196,503 140,747 171,928 3,271,595 3,170,407 3,964,252 4,015,113 3,862,123 146,567 164,867 165,587 135,914 207,205 333,694 2 3 4 3 2,730 (3,466) (88,639) (71,561) 5,850,447 4,579,077 5,410,793 5,377,221 5,652,220 $27,118,862 $ 21,723,391 $ 22,947,509 $ 25,139,671 $ 27,884,766 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 Revenues: Taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Licenses and permits Investment income Other Total revenues Expenditures: Current: General government Public safety Public works Parks, recreation and culture Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency)of revenues over (undm) expenditures Other financing sources (uses): Bond issued orrefinancing Bonds discount urpremium Transfers in Transfers out Proceeds from sale ofcapital asset Total other financing sources (uses) Net changes infund balances Debt service aea percentage nfnonomphm| expenditures Source: City Finance Department City of Statistical Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) FiscalTear Ended June 30,= 504.908 541.382 543.561 550,822 550.989 8.821.141 11.109.052 9.890.948 12.081466 11,478.458 870.314 1.002.210 1.111,855 1.460.828 3.181.416 588.922 540.902 837,484 601.583 687.930 2.389.148 4^247.628 3.121.476 1.445.324 040^287 1.250.570 1.716.194 1,629257 938.053 048.503 792,216 767,457 826,177 1,018,956 30,766 24726,977 29 3,551.659 4.402.235 3.987^056 5.01.860 4,435.858 5.404.250 4.880.290 4.933.858 5.407,476 5.524.270 4.789.497 5.114.274 4.926.418 5.607.870 5.183.904 2.813.834 3.475.548 3.714.762 3.073.282 3.655.020 2.748.539 2.232.757 2.246.486 1.945.951 1.604.220 5.320.597 5.344.935 4.271.880 5.508.167 5.101.924 235.000 240.000 255.000 205.000 280.000 404075 493840 411,583 187,212 33,904 25047400 26,243,880 24,747,763 27,666,818 25,879,178 (320.483) 3.823.703 3.184.870 (450.481) (132.932) 318% 2�91% 2.89% 177% 1.35% Mir-MORM 2011 2012 2013 2014 2015 550.562 547,208 550.809 549,402 072,482 9.441.059 11.053.320 10,427.352 10.281.085 11.185/480 3.398367 3.190,675 3238.165 3`321.883 3`344.350 507.575 500.188 522.142 582.844 523.145 818/913 1.127.568 1,238.820 1.542.765 5,474.765 499,377 183.507 30.118 281.752 273.050 113,578 54,634 25,035,214 4.977,021 5,485,001 4,214.834 5.115^321 5,040/01 5.580.507 5i731.595 5.078.614 5,602.021 5,914,404 5.002.456 0.609.087 5.283.046 5`098.765 5.216.083 3.712.194 4.090.551 4.050.161 4.408.054 4.225.838 1.900.125 2.114.433 2.010.040 2.225.847 2.540^430 11.480.595 0.702.015 3.031.188 2.518.017 4.040.801 290.000 12.510.000 395.000 350.000 305.000 37461 400626 502291 492159 481,656 33040350 43640908 25,085,154 26,409,484 28,430,893 (8.005.145) (17.319.821) 1.073.985 875.314 3.910.030 11,790,000 252.381 - ' - 2.920.528 0.085.337 5.195,892 4,850.728 7,084,620 (3.535,556) (6,494,449) (5,690.201) (5,822,286) (824 .564) 2,282,406 8Ch�duh*� (�UvOf[}i8rOOOd Bar Assessed and Estimated Actual Values OfTaxable PnQpBdv 2005/06-2O14/15 Taxable Property Values (unaudited) Ficaoa| Year Real Property Less Total Taxable Total Ended Secured Unsecured Other Tax Aaamaned Direct June 30 Property Property Property Exemptions Value Tax R Change 2085-00 $ 5.842.972.440 $ 83.223.023 $ 103.090 $ 51.408.286 $ 5.874.950.278 0.05288 7.86% 2080-07 8.358.723.848 90.751.985 134.088 28.682.577 0`421.927.342 0.05280 8.31% 2087-08 0.824.177.817 109.704.881 0 39.859.238 8.884.023.460 0.05485 7.35% 2008-09 7.151.359.322 89.170.084 O 40.909.184 7.201.620.222 0.05270 440% 2009'10 7.071.103.381 90.528.493 O 66.422.679 7.085.209.195 0.85274 -1.48% 2810-11 7.183.808.793 81.410.401 0 70.708.028 7.193.712.565 0.05270 1.39% 2011'12 7.347.032.537 77.283.006 0 74.280.181 7.350.019.952 0.05208 2.17% 2012-13 7.471.528.800 78.724.231 O 78.850.097 7.409.396.334 0.05207 1M% 2013'14 7.705.883.788 80.544.511 O 83.574.453 7.751.853.846 0.05204 378Y& 2014-15 8.201.610.010 70.524.428 0 83.185.280 8`188.945.158 0.05200 5.84% Exempt values are not included inTotal 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 to2007.all SBE Nonunitary Railroad Properties were taxed at the tax rate area level. Aaof2007.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. 103 City of Diamond Bar N,irect and Overlapping Property Tax Rates (Rate per $100 of Assessed Value) Basic Levy* County Detention Facilities 198TDebt LACounty Flood Control Metropolitan Water District Mt. San Antonio College Pomona Unified School Dist Walnut Valley Unified School Dist Total Direct & Overlapping Tax Rates General Obiligation Debt Rate Redevelopment Rate* 2005106 2006107 2007108 2008109 2009110 1.00000 1.00800 1.00000 1.00800 1.00000 0.00000 0.0008 0.00000 0.0000 0.00000 0.00005 0.00005 0.00000 0.00008 0.00000 0.00520 0.00470 0.00450 0.00450 0.00430 0.02132 0.02530 0.01750 0.02353 0.02571 0.12488 0.12401 0.11378 0.11577 014546 0D9140 0.00749 0.08462 0.11297 011074 1.2436 1.2422 1.2204 1.2564 1.2922 0.05192 0.05192 0.05192 0.05192 0.05192 0.05288 0.05280 0.05485 0.05270 0.05274 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 apply to all city property owners. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. 104 2010/11 2011/12 2012/13 2013/14 2014/15 1.00000 1.00000 1.00000 1.00080 1.00000 0.00000 0.00000 0.00000 0.0000 0.0000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00370 0.00370 0.00350 0.00350 0.00350 0.02030 0.02642 0.02896 0.02023 0.02129 0.17721 0.17304 0.18408 0.16407 0.18599 011839 011785 012554 011342 011510 1.3257 1.3211 1.3429 1.3012 1.3059 0.05192 0.05182 0.05192 0.05182 0.05192 0.05270 0.05268 0.05267 0.05264 0.05260 105 City OfDiamond Bar Schedule 7 Top 10 Property Taxpayers Current Year and Nine Years Ago 057R M-WrOlKers =21, Norlml- 201445 Percentage of Total Current Taxpayers Assessed Valuation Net Assessed Valuation RoiuCa|dbmia LLC $ 48.217.807 0.59% 8RGK4FSouth Grand Diamond Bar 45.449.908 056% Diamond Bar Gateway Corp Inc 40.000.000 0.49% Pacifica Trenton Hn|dings-2LLC 30.238.054 0.37% RmioDBTCLLC 27.926.208 0.34% Target Corporation 20.556.094 0.32% Muller Rock 2Gateway 28.254.959 0.32Y6 KAiUeniumDiamond Road 23.809.795 0.29% Foremost Diamond Ranch 18.841.989 0.23% Margaret K4.Tam Trust ETAL 18.103.517 0.22% Top Ten Total $ 305,457,031 3.73% City Total $ 8,188,945,156 2005-06 Percentage of Total Taxpayers Nine Years Ago Assessed Valuation Net Assessed Valuation Hampton Apartments atDiamond Bar LID $ 34.100.000 0.58% Behringer Harvard Western Portfb 29.441.888 0.50% Pacifica Trenton Center LP 27.300.000 040% Gem Gateway Limited Inc 25.768.277 0.44% Muller Rock 2 Gateway 18.482.061 0.33% Millennium Diamond Road Partners LLC 17.300.000 0.29Y6 Margaret KA.Tam Trust 15.923.105 027% Ari Diamond Bar 15.886.720 0.27% Emerald Pointe Apartments LLC 15.474.148 027Y6 H RBarnoaFamily Ltd Partnership 15.070.875 0.20% Top Ten Total $ 215,746,992 3.67% City Total $ 5.874.950.278 057R M-WrOlKers =21, Norlml- Fiscal Year Taxes Levied Ended for the June 30 Fiscal Year Subsequent 2006 $ 3.868.292 2007 3.351.047 2088 3.508.889 2880 3.760.371 2010 3.704.133 2011 3.750.808 2012 3.844.101 2013 3.908.533 2014 4.075.791 2015 4.326.040 City Finance Department City OfDiamond Bar Property Tax Levies and Collections Schedule 8 Last Ten Fiscal Years (unaudited) Collected within the Collections in Fiscal Yea/f Levy Subsequent Amount % to Levy Years % to Levy $ 2.761.804 90.01% $ 306.480 9.00% 3.898.289 92.20% 261.359 7.8096 3.276.908 91D5% 321.981 8.9596 3.436.585 91.39% 323.786 8.6196 3.412.996 92.14% 291.137 7.8696 3.505.792 0347% 245.015 6.53% 3.506.600 01.22% 337.405 878% 3.778.461 06.67% 130.072 33396 3.900.684 97.18% 115.107 2.82% 4.189.390 06.84% 136.650 3.1096 107 City of Diamond Bar Schedule 9 Ratios of Outstanding Debt by Type Last Ten Fiscal Years 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. 1: Governmental Activities Fiscal Year Lease Other Total Total % of Debt Ended Revenue Bond & Governmental Primary Personal Per June 30 Bonds (a) Loans Activities Government Income (b) Capita (b) 2006 $ 13,520,000 0 $ 13,520,000 $ 13,520,000 0.74% 227 2007 13,280,000 0 13,280,000 13,280,000 0.70% 223 2008 13,025,000 0 13,025,000 13,025,000 0.68% 217 2009 12,760,000 0 12,760,000 12,760,000 0.68% 212 2010 12,480,000 0 12,480,000 12,480,000 0.64% 225 2011 12,190,000 0 12,190,000 12,190,000 0.66% 218 2012 11,470,000 0 11,470,000 11,470,000 0.62% 205 2013 11,135,000 0 11,135,000 11,135,000 0.56% 198 2014 10,785,000 0 10,785,000 10,785,000 0.54% 191 2015 10,420,000 0 10,420,000 10,420,000 0.54% 185 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. 1: City VfDiamond Bar Schedule 10 Direct and Overlapping Debt June 5O.2O15 (unaudited) Gross Bonded %App|icab|e Net Bonded Debt Balance To City Debt Direct Debt asofJune 3O,30i5 Diamond Bar Lease Revenue Bond $ 10.420.000 108.000 $ 10.420.000 Overlapping Debts asmfJune 3O,2U15(2) 33O.1OMetropolitan Water District 53.296.385 0.842 448.799 8U3.53M\San An1omioCCD 2O01Series C2000 1.975.800 18.807 214.017 OO9.54K8tSan Antonio CCD DS2OB1.2OO8Series D 21.706.054 10.807 2.358.797 000.50K4tSan Antonio CCD DS2OO8Series 13A 203.861.081 10.867 22.153.041 88S.57MtSan Antonio CCD DS2OO8Series 2O13B 10.640.000 10.857 1.156.217 8U9.58K8tSan Antonio CCD DS2013Series A 73.910.000 18.887 8.031.570 8O9.5SK8tSan Antonio CCD D82O13Series B 47.085.000 10.887 5.110.585 015.02Pomona Unified School District 2OO8Ser A 14.800.000 20.188 2.987.870 915.S4Pomona Unified SDRefunding 20O1Ser A 14.305.088 20.188 2.887.944 A15.08Pomona Unified School District 2O02Ser D 7.711.052 20.188 1.550.734 S15.05Pomona Unified School District 20D2Ser E 31.185.000 20.188 8.295.738 A15.7DPomona Unified School DS2O07Ref Bonds 42.040.080 20.188 8.487.183 S15.T1Pomona Unified School District 20O8Series A 15.170.000 20.188 3.882.573 &16.72Pomona USDDS2OO8Series B 28.875.000 20.188 5.385.243 S15.73Pomona USD 2OO8Series C 14.000.000 20.188 2.820.353 O15.74Pomona USDDS2O12Refunding Bond Series A 23.000.000 20.188 4.043.321 S15.75Pomona USDDS2O12Refunding Bond Series B 19.650.000 20.188 3.987.011 &15.7MPomona USDD52UUGSeries DQSCBS 24.590.000 20.188 4.004.310 S8O.80Walnut Valley Unified USDDS2OOOSeries E 11.428.114 59.259 0.772.213 080.01Walnut Valley Unified SD20O5Ref Bond 5.266.837 50.250 3.121.887 SBO.02Walnut Valley Unified SD2OO7Series A(Measure S) 620.000 55.259 387.407 Q8O.63Walnut Valley Unified SD2O07Series A(Measure Y) 27.145'800 50.259 18'085.918 3O0.O4Walnut Valley Unified SD2O11 Refunding 11.525.000 59.259 6.823.620 08O.O5Walnut Valley USD 2O07Series B(Measure S) 0.355.887 50.258 3.766.450 S8O.0OWalnut Valley USD 2OO7Series B(Measure Y) 27.658.541 59.259 10.390.239 Q8O.87Walnut Valley USD 2O12Ref Bonds 35585000 50.259 21,075,546 Total Overlapping Debts: 771,165,171 100952431 Grand Total Direct and Overlapping Debt: $ 781,585,171 $ 171,372,431 2014/15 Net Assessed Valuation: $8.188'A45.15G Direct Debt 013% $185 2814Total City Population: 50,420 Overlapping Debt 1�97% $2.852 Total Debt 2.10% $3.037 Note: (1) Percentage mfdirect and overlapping agency's assessed valuation located within boundaries ofthe city. (2) The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city. Source: Hd|Cor n&Cone U.S.Census Bureau Net assessed value Add back: Exemptions Gross assessed value Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit City Debts: Revenue bonds Net assessed value Add back: Exemptions Gross assessed value Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit City Debts: Revenue bonds City of Diamond Bar Computation of Legal Debt Margin Last Ten Fiscal Years ffilffz�� 2011 2012 2013 2014 2015 70,706,628 7.204.419.184 7.424.310.143 7.548.253.031 7.835.428.299 8.272.134.430 25% 25% 25% 25% 25% 1.810.104`799 1.858.079.036 1.887.063.258 1.958.857.075 2.068.033.808 15% 15% 15% 15% 15% 272.415.720 278.411.855 283.059,488 293.828.501 310.205^041 12.190.080 11.470.000 11.135.000 10.785.000 10.420.000 2006 2007 2008 2009 2010 iJL4J.J#WJr Mi 51,408,286 5.020.338502 0,450.009,910 6.033.882,698 7,250.520380 7.161721.874 25% 25% 25% 25% 25% 1.481.589.641 1.012.652.480 1.733.470.875 1.812.832.347 1.790.430.469 15% 15% 15% 15% 15% 222.238.446 241.807.872 200.020.601 271.894.852 268.504.570 13.520.000 13.280.000 13.025.000 12.780.000 12.480.000 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 1A81'82fiscal 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 GovernmentCode Hd|Conen&Cone Wul City ofDiamond Bar Schedule 12 Demographic and Economic Statistics Date of Incorporation April 18, 1989 Form of Government Council -Manager Area 15 Square Miles Miles of Streets 128 Public Safet Police Protection Los Angeles County Sheriff Department Fire Protection Los Angeles County Fire Department 11,11ater Services Service Provider Walnut Valley Water Distril _=�' �| School District Pomona Unified School District Schools 1 High School, 1 Middle School, &4 Elementary Schools School District Walnut Valley Unified School District Schools i High School, 2 Middle Schools, &4Elementary Schools Year Full Value Sales paroma| Per Capita 2012 709 Pop 25+ Pop 25+ Calendar 814 Income Personal Unemployment Median High School Bachelor Year - Population $ 047.549 Income Rate Degree Degree 2005 59.528 1.721.421 28.018 3.80% 2000 59.497 1.827.906 30.724 3.40% 2087 59.020 1.903.585 31.024 3.00% 2008 58.920 1.929.498 32.201 5.38% 2009 80.184 1.885.098 31.332 8.30% 38.2 93.1% 46J% 2010 55.786 ° 1.960.418 55.154 9.10% 39.8 92.0% 47.6% 2011 55.819 1.846.158 33.074 8.80% 48.5 92.5% 47.8% 2012 56.093 1.991.290 35.496 6.00% 40.8 92.6% 48.8% 2813 58.400 1.984.772 35.191 5,40% 41.3 924% 407% 2014 58.420 1.919.782 34.023 5.30% 40.9 92.0% 48.4% Year Full Value Sales Average Price Median Price 2012 709 $ 484.881 $417.508 2013 814 $ 591.380 $5O0.00O 2014 781 $ 680.281 $535.000 2015 417 $ 047.549 $555.000 Data Source: L&County Recorder in Median % Change 19.76% 7.00% 3.7496 City of Diamond Bar Schedule 13 Principal Employers (unaudited) Current Fiscal Year and Nine Fiscal Years Ago South Coast Air Quality Management 750 2015 n/a Avnet Number of 2 Percent of Company Name Employees Rank Employment Walnut Valley Unified Schools District 2000 1 6.99% South Coast Air Quality Management 800 2 2.80% Allstate Insurance - Claim Dept 485 3 1.70% Travelers Insurance 475 4 1.66% Kaiser Permanente 400 5 1.40% Pomona Unified School District 385 6 1.35% QTC/Lockheed 250 7 0.87% Liferay 202 8 0.71% Wells Fargo Bank 180 9 0.63% Insperity 180 10 0.63% Total 5,357 18.74% Total city employment 28,600 in 2015. 2006 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 St Paul Travelers 400 5 n/a Diamond Bar High School 200 6 n/a Lab Support Inc 200 7 n/a Baybrook Services 120 8 n/a Goodrich Corp 120 9 n/a Century 21 Diamond Realty 100 10 n/a Total 3,490 n/a Sources: (1) State of California - Labor Market Info (2) Info USA - Government Division (3) City Manager's Office ir, Function General government Community development Community services Public works IM Function General government Community development Community services Public works Schedule 14 City of Diamond Bar Full-time and Part-time City Government Employees bVFUOCtiOD/P[Dg[BOl 2011 2012 2013 2014 2015 24 23 24 24 25 8 8 8 8 B 75 75 87 70 73 9 9 8 8 S 116 115 127 110 115 2006 2007 2008 2008 2010 22 21 24 25 21 8 8 0 7 8 77 74 69 71 75 7 8 10 10 S Total 114 111 109 113 113 The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance - A full-time emplyee is scheduled to work 2,080 hours per year (including vacation and sick leave). Source: City Finance Department 113 Sources: (1) Police Walnut/Diamond Bar Station (Z)LACounty Fire Dep East Regional Operation Bureau (3)City Public Works Department (4) City Community Services Department (5)Includes online classes Nobe: Indicators are not available for the general government function. 114 (�UnOf��iaD0Ond Bar Fiscal Year Ended June 3O Schedule 15 Function Operating Indicators h»Function 2OO7 2008 2009 2010 Last Ten Fiscal Years Fiscal Year Ended June 3O Physical arrests 558 Function 2011 2O1� 2013 2014 2015 Poiice(infiscal year) (1) 5.700 5.684 5.200 5.103 Physical arrests 647 737 630 494 522 Street Sweeping Parking Citation 4.137 3.766 3'776 5,774 5.887 Fin*: (in fiscal year) (2) 2.581 2.854 Inspections 837 Number o[emergency calls 2.594 2.516 2.604 2.760 2.820 Inspections 1.202 1.287 1.477 1.434 1.413 Public works: (in fiscal year) (3) 1&8 MS M5 118 Street resurfacing (mi|aa) 12.0 92 8.3 12.5 17.0 Parks and reoreetion:(infiscal year)(4) Number ofrecreation classes 1.376 1.558 Number ofrecreation desmee(S) 2.115 2.096 2.082 2.623 2.591 Number of facility rentals 4,147 4,270 4,332 4,178 4,491 Sources: (1) Police Walnut/Diamond Bar Station (Z)LACounty Fire Dep East Regional Operation Bureau (3)City Public Works Department (4) City Community Services Department (5)Includes online classes Nobe: Indicators are not available for the general government function. 114 Fiscal Year Ended June 3O Function 2006 2OO7 2008 2009 2010 Police: (1) Physical arrests 558 582 543 591 700 Street Sweeping Parking Citation 5.700 5.684 5.200 5.103 5.110 Fim Number ofemergency calls 2.592 2.612 2.595 2.581 2.854 Inspections 837 1.114 1.085 1.100 970 Public works: (3) Street resurfacing (miles) 1&8 MS M5 118 213 Parks and nacrosdion:(4) Number ofrecreation classes 1.376 1.558 1.569 1.315 2.456 Number offacility rentals 4.305 4.565 4.103 4.299 4.111 Sources: (1) Police Walnut/Diamond Bar Station (Z)LACounty Fire Dep East Regional Operation Bureau (3)City Public Works Department (4) City Community Services Department (5)Includes online classes Nobe: Indicators are not available for the general government function. 114 Schedule 16 ���D�mo�Bar Capital Asset Statistics byFunction Last Ten Fiscal Years Fiscal Year Ended June 3O. Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Public safety (1) Station 1 1 1 1 1 1 1 1 1 1 Patrol units (all shifts combined) 10 19 18 18 18 18 18 18 18 18 Fire stations pV 3 3 3 3 3 3 3 3 3 3 Highways and streets (3) Streets (miles) 128 128 128 128 139.4 1294 1294 1294 1394 1294 Streetlights (a) 233 233 233 294 294 294 294 294 294 Traffic signals (o) 74 74 74 78 n} 70 76 76 70 Culture and mcmadvn:(4) Parks acreage (deve|oped) 627 027 027 027 027 53.0 07.9 87.9 0&0 08.8 Parks acreage (undove|opod) 488.0 4380 439.0 4884 438.4 4403 440.3 448.5 440.3 4403 Podo 11 11 11 12 12 13 14 14 14 14 Public Tennis courts 8 8 8 M 8 8 0 8 8 0 Community centers 3 3 8 3 3 8 3 3 3 3 GoVCourse:(5) County golf courses 1 1 1 1 1 1 1 1 1 1 Sewer (3) Sanitary sewers (miles) (a) 157 157 157 158A 158.4 158.4 161 21 161.21 161.21 (a) The City fully implemented the new reporting model of the Infrastructure Valuation and Asset Management System in accordance with GASB 34inFY20O7. Sources: (1) Police Walnut/Diamond Bar Station (2)LACounty Fire Department, Division NUOffice (3)City Public Works Department (4)City Community Services Department (5)LACounty Golf Course Nov*: 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. 115 imm. DLAMOND BAR