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HomeMy WebLinkAboutFiscal Year 1990-91 Financial StatementPORT BEACH, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30,1991 ■ ■ kip Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 1991 Prepared by the Finance Department Dennis C. Danner, Director � � � � � � � : � \ L - I (4e � L -rm(k,, , , �--4! Ns W-A ■ ■ ■ CITY OF. NEWPORT BEACH ■ Comprehensive Annual Financial Report ■ Year ended June 30, 1991 ■ TABLE OF CONTENTS ■ ■ INTRODUCTORY SECTION Tableof Contents ......................................................................... ............................... i ■ Letter of Transmittal .................................................................... ............................... iii List of City Officials ........ ............................................................ ...........................xiii ■ Organization Chart ...................................................................... ............................xiv ■ FINANCIAL SECTION ■ Independent Auditors' Report .................................................... ..............................1 General Purpose Financial. Statements ■ Combined Statements: ■ Combined Balance Sheet All Fund Types and Account Groups ............................2 Combined Statement of Revenues, Expenditures,and Changes ■ in Fund Balance —All Governmental Fund Types ................. ..............................4 Combined Statement of Revenues, Expenditures and Changes ■ in Fund Balances — Budget and Actual — General and ■ Special Revenue Funds ............................................................ ..............................6 Combined Statement of Revenues, Expenses and Changes in ■ Retained Earnings— Proprietary Fund Type — Enterprise Funds ..........................8 Combined Statement of Cash Flows— Proprietary Fund ■ Type— Enterprise Funds .............................. ........................ ..............................9 ■ Notes to Combined Financial Statements ................................ .............................11 ■ Supplementary Information ■ Governmental Funds ■ General Fund: Comparative Balance Sheets ....................................................... .............................33 ■ Statement of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual ................................................ .............................34 ■ ■ Special Revenue Funds: Combining Balance Sheet .................. . .................................... .............................36 ■ Combining Statement of Revenues, Expenditures and Changes in FundBalances ........................................................................ .............................40 ■ Statement of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual: ■ — Park and Recreation Fund ........................................... .............................44 — Library Fund. ........ .......... ....................................................... 45 ■ ■ i ■ TABLE OF CONTENTS (Continued) — State Gas Tax Fund ....................................................... .............................46 — Arterial Highway Financing Fund ................................ .............................47 — Federal Adopted Forfeiture Fund .................................. .............................48 — Traffic Safety Fund ...:.....................:............................. .............................49 — Parking Meter Fund ....................................................... .............................50 — Tide and Submerged land Fund .................................: .............................51 — Contrtbuttons Fund ...................................................... .............................52 — Building Excise Tax Fund .................................:........... .............................53 — Community Development Block Grant Fund ................ .........:...................54 Capital Projects Funds: Combining Balance Sheet ........................................................... .............................55 Combining Statement of Revenues, Expenditures and Changes in FundBalances ........................................................................ .............................56 Proprietary Funds Enterprise Funds: CombiningBalance Sheet ..................................................... .............................58 Combining Statement of Revenues, Expenses and Changes in RetainedEarnings ................................................................... .............................60 Combining Statement of Cash Flows .......................................... .............................62 Fiduciary Fund Type Agency Funds: Combining Balance Sheet ........................................................... .............................65 Combining Statement of Changes in Assets and Liabilities ........ .............................66 Account Groups General Fixed Asset Account Group: Comparative Schedule of General Fixed Assets by Source ........ .............................67 General Long Term Debt Account Group: Comparative Schedule of General Long -Term Debt ................... .............................69 STATISTICAL SECTION (Not Covered by Independent Auditors' Report) Miscellaneous Statistics .......................... ............................... .. ............................... 71 General Governmental Revenues by Source, Last Ten Fiscal Years .......................72 General Governmental Expenditures by Function, Last Ten Fiscal Years ..............72 Assessed and Estimated Value of Taxable Property, Last Ten Fiscal Years ............74 Secured Property Tax Levies and Collections, Last Ten Fiscal Years ......................74 Construction Activity, Last Ten Fiscal Years ............................. ............................... 76 Bank Deposit Activity, Last Ten Fiscal Years ............................ ............................... 76 Property Tax Rates, Direct and Overlapping Governments, Last TenFiscal Years ...................................................................... .............................78 Computation of Legal Debt Margin .............................. ............................................ 78 Principal Property Taxpayers ...................................................... .............................79 Schedule of Direct and Overlapping Bonded Debt Last Ten Fiscal Years .............80 ii ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH ■ November 30, 1991 P.O. BOX 1768, NEWPORT BEACH, CA 92659 -1768 ■ Honorable Mayor and Members of the City Council ■ City of Newport Beach Newport Beach, California II ■ The Annual Financial Report of the City of Newport BeachfortheyearendedJune30 ,1991issubmitted herewith. Responsibility for the accuracy, completeness and fairness of the data presented, including ■ all disclosures, rests with the City. We believe the information presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial activity of its various ■ funds and accountgroups; andthatall disclosures necessary toenablethereaderto gain themaximum ■ understanding of the City's financial activity have been included. ■ This report is presented in three sections: the lnt roductorySection, which containsthetableofcontents, the transmittal letter, a listing of administrative personnel, and the organization chart; the Financial ■ Section, which consists of the independent auditors'report, the general purpose financial statements, notes to the financial statements and the combining and individual fund and accountgroup statements; ■ and the Statistical Section, which contains other pertinent information about the City. ■ The City of Newport Beach is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A -128, ■ Audits of State and Local Governments. information relatedto this single audit, including the schedule ■ of federal financial assistance, findings and recommendations, as wll as independent auditors'reports on the internal control structure and compliance with applicable laws and regulations, are provided ■ under separate cover ■ This report includes all funds and account groups of the City. The City provides a full range of services including police and Fire protection, marine services, maintenance of highways and streets, public ■ improvements, planning and zoning, utilities, sanitation and solidwaste disposal, recreational activities, cultural events and general administrative services. In addition to general government activities, the ■ City Council exercises, orhas the abilityto exercise, oversightof the CanneryVillage Public Financing ■ Authority. The activities of this component unit are therefore included in the reporting entity. The following entities are not covered because they do not meet the established criteria for inclusion in this ■ City'sreport: State of California, County of Onange, Public Employees RetirementSystemandNewport- Mesa Unified School District. ■ iii ■ The City's long -term tax base is broad, diverse and expanding. The primary revenue sources include ■ property taxes and sales taxes. In addition, there area number of major hotels located within the City ■ Economic Condition and outlook ■ that produce substantial interestearnings forthe City's various funds. A recently completed renovation ■ The City of Newport Beach was incorporated in 1906 and operates under a freeholder's charter ■ providing for a Council-Manager form of govern mentwitha Council Member City Council. Theseven ■ City Council members are nominated by district and elected at large forfour yearterms at elections held ■ in even numbered years. The City is located in Orange County, on the shores of the Pacific Ocean, ■ approximately 15 miles south of the City of Long Beach and 75 miles north of San Diego. It shares ■ borders with the Cities of Costa Mesa, Huntington Beach, Irvine and Laguna Beach as well as ■ unincorporated County territory. ■ The City's long -term tax base is broad, diverse and expanding. The primary revenue sources include ■ property taxes and sales taxes. In addition, there area number of major hotels located within the City which produce a transient occupancy tax. Current cash reserves also afford investment opportunities ■ that produce substantial interestearnings forthe City's various funds. A recently completed renovation ofthe Fashion Islandshopping center, withinthe City, has helpedtomaintain the City's sales tax revenue ■ base. ■ Continued commercial and residential development within the City will generate additional revenues. It will also result in additional drains on resources in the City's efforts to continue providing the highest ■ quality services to its residents and commercial establishments. Property values in Newport Beach ■ continue to increase, thus maintaining the City's substantial property tax base. Because of the City's outstanding beaches and harbor, NewportBeach attracts as manyas 100,000 tourists a day. This tourist ■ population helps to maintain the City's strong economic base, but, once again, it requires expenditures for services. ■ Major Initiatives ■ Fortbeyear. At the time the City's 1990-91 fiscal year budget was prepared (several months before the ■ year began), an overall revenue increase of 14.55% was projected. The budget therefore reflected ■ continuation of ongoing/scheduled capital improvement projects, alongwitha variety of newinitiatives in several different areas. During the course of the year, as the magnitude of the economic slowdown ■ became more apparent, revenue projections were revised downward. Commensurate management actions were also instituted to appropriately curtail expenditures. These consisted primarily of hiring ■ restrictions, buttheyalsoincluded somemaintenanceand operations reductions, aswell as postponement of a few relatively non -time sensitive minor capital projects. ■ Although these actions resulted in some aspects of the City's programs being less aggressive than ■ originally planned, there was no delay in effecting repairs, improvements, or other activities thatwere of a priority nature. As a practical matter, larger capital improvement projects generally encompass ■ more than onefiscalyearfrom design to construction, so these actions didnothampertheircompletion. ■ The above factors notwithstanding, the City maintained a healthy program of initiatives during fiscal ■ year 1990 -91. Street, highway, and other transportation related projects continued to be the functional area receiving the greatest emphasis. In addition, there were projects for pier and seawall repair and ■ rehabilitation, storm drain repairs and improvements, sewer and water main replacements and upgrades, reservoir and water well improvements and construction, street light conversions, beach ■ restroom replacements, and various park and recreation facility improvements. A number of projects begun in prioryearswere still underwayinfiscalyear 1990-91, such -as the McFaddenSquare renovation, ■ the Coast Highway widening, the Geobase Mapping and Information System development, and the ■ iv ■ ■ design and rebuilding of the Balboa Island Fire Station. ■ For the Future. As mentioned above, the economic slowdown and resulting revenue shortfalls for the ■ City have resulted in postponement of some of the improvements and programs originally scheduled ■ to begin this period. However, the City's planned capital improvement program extends for several years into the future. In addition, budgets for actual projects coverthree frscalyears, with the knowledge ■ that many of them are not completed in the first year ■ Continued emphasis will be placed on correcting or improving water, sewer, storm drain, and street lighting systems within the City. Special objectives for the near -term include the rehabilitation of ■ portions of Irvine Avenue and jamboree Road; the resurfacing of portions of streets within Harbor Highlands, Harbor View Homes, Irvine Terrace, Koll Center, and Newport Island; the construction of ■ a failed bulkhead adjacent to Lido Park Drive; the replacement of deteriorated asphalt alleys with ■ concrete alleys in Corona del Mar, and on Balboa Island and Balboa Peninsula; and the construction of new storm drain systems to serve Balboa Island and Newport Heights. Several assessment districts ■ to provide funding for undergrounding of utilities are in the final stages of implementation, with more planned for the future. Work will continue on the major project to widen Newport Boulevard between ■ 32nd Street and Coast Highway, including widening of the Channel Bridge. ■ Workwill also continue on the final two years of initial implementation ofthe Geographical Information System with emphasis on completing the computerized City base map and upon furtherdevelopment ■ of the Building Department "Permits" tracking system. Development of the relational database and its design configuration will be a central focus for the next fiscal year. ■ ■ The City will also continue to maintain its high level of safety and social programs through the Police, Fire, Marine, Library, and PB & R (Parks, Beaches and Recreation) Departments. Included in these ■ services will be the continued funding of the construction of a new main library for the City. Actual construction is expected to begin in June of 1992. ■ During 1991 -92, the City will install and begin operating on a fully integrated automated financial ■ management system for the first time. The full range of financial management functions, to include purchasing, payroll, cashiering, accounts payable, accounts receivable, budgeting, and a variety of ■ related functions, will be consolidated in the system. ■ Financial Information ■ Management of the City of Newport Beach is responsible for establishing and maintaining an internal ■ control structure designed to ensure that the City's assets are protected from loss, theft, or misuse; and to ensure that adequate accounting data are compiled to allow for the preparation of financial ■ statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The ■ conceptof reasonable assurance recognizes that: ( 1) the cost ofa control should notexceedthebenefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by ■ management. General GovernmentFunction. The following schedule (expressed in thousands) presents a summary ■ of General Fund, Special Revenue Fund and Capital Projects Fund revenues for the fiscal year ended June 30, 1991 and the amount and percentage of increases and decreases in relation to prior year ■ revenues. ■ v ■ Fiscal Year 1990 -91 Revenues Revenues Amount ($1,000) ° %of Total Change %Change Taxes $40,479 53.41% $2,089 5.44% Licenses & Permits $2,808 3.71% $154 5.82% Intergovernmental $11,029 14.55% ($5;307) - 32.49% Charges for Services $4,789 6.32% ($128) - 2.60% Fines & Forfeits $3,115 4.11% ($261) -7.75% Use of Money & Property $9,999 13.20% $233 2.39% Miscellaneous $3,556 4.70% ($285) -7.42% Total $75,775 1000/0 ($3,505) -4.42% 10.00% G$YF•1S3:.F<:$ :: ...::: .:. ::9 !:aYn ? S 5.00% ry s" -5.00% -15.0Wh .'•'.3"! :E'E. SGi;•'leru]"5i'•Fiki 3 f "' iii °JJ't a: i1 ? ' iffi? - 20.00% 1�•'jiyi$ ?':': "ic:.': ;SZ ` -': ::is: .�< - 25.00% .:Y ....r.. rii '-''.'� RN.. i' ' -30.0096 - 35.00% X F w n Gyw O Y .5 W F N IL � G N ai L 7 ~O G a U W v N Y J W Zi ^' c v Revenue by Source 1990 -91 Vi Percentage Change in Revenue 1989 -90 to 1990 -91 ■ Taxes ❑ Licenses & Permits r Intergovernmental 0 Charges for Services r Fines & Forfeits Use of Money & Property Miscellaneous IF ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 7 ■ ■ The net decrease in total revenue since last year is representative of the overall economic decline, as . well as some one -time aberrations in specific areas. It would appear that the most significant single development in revenue was the decline in revenue received from other governmental sources. However, the size of this decrease (32.49%) is largely a correction for the exceptionally large increase of 46.15% that occurred last year, pri marily representing funds received for the Pacific Coast Highway ■ Widening project, which was then at its peak. This year's figure of $11,029,000 is actually quite consistent with the long term trend in revenues from this source, as can be seen from the information ■ concerning revenues over the past ten years contained in the statistical section to this publication. ■ Without this decline, overall revenue would actually have shown a small increase over the prior year. ■ About 45% of the revenue from use of money and property represents investment income. In spite of declininginterest rates, the City's revisedinvestment program resulted invirtuallyno decline in revenue ■ from this source. This, along with a slight increase inrevenues from rentals and concessions, precluded a potential decrease in this category. The increase in revenue from taxes and licenses and permits is still ■ generally consistent with long term trends, bu t a continuati on of th e economic slowdown will begin to affect these categories much more significantly in the future. ■ The schedule below and the graphs on the following page present a summary of General Fund, Special ■ Revenue Fund and Capital Projects Fund expenditures for the fiscal year endedJune 30, 1991 and the ■ percentage of increase or decrease in relation to prior year amounts. ■ The significant increase in general government expenditures was due primarily to large payments on self - insured liability claims and other self - insured programs during the 1990 -91 fiscal year. ■ The significant decrease in capital outlay was due primarily to completion/winding down of a major ■ highwaywidening project in the City. The other expenditure accounts have not increased ordecreased significantly. ■ ■ ■ ■ Fiscal Year 1990-91 Expenditures ■ Expenditures Amount($1,000) %of Total Change %Change ■ General Government $7,301 9.31% $1,936 36.09% ■ Public Safety $26,912 34.32% $183 0.68% Community Development $183 230% ($3) -1.60% ■ Public Works $17,247 21.99% $1,442 9.12% ■ Culture & Recreation $7,283 9.29% $673 10.180/0 Capital Outlay $19,499 24.86% ($4,112) - 17.42% ■ Total $78,425 100.00% $119 0.15% ■ ■ ■ ■ vii 40.00% 30.00% 20.00% 10.00% 0. W/o - 10.00% - 20.00% > 0 C7 � w A U Expenditures by Function 1990 -91 Percentage Change in Expenditures 1989 -90 to 1990 -91 E General Government 0 Public Safety 0 Community Development E Public Works III Culture & Recreation N Capital Outlay SingleAudit. As a recipient of federal, state and county financial assistance, the City is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the internal audit staff of the City. The City is required to undergo an annual audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Circular A-1 28, Audits of State and Local Governments. As part of the City's single audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the fiscal year ended June 30, 1990 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. The information related to the single audit, including the schedule offederal financial assistance, findings and recommendations, and independent auditors'reports on the internal control structure and compliance with applicable laws and regulations are included in a separate report. viii t ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Budgeting Controls. The City of Newport Beach maintains budget controls. The objective of these ■ controls is to ensure compliance with legal provisions embodied in the annual appropriated budget ■ approved by the City Council. Budget control is maintained at the departmental level, or project level in the govern mental fund types. The City maintains an encumbrance accounting system as one method ■ of accomplishing budgetary control. Where encumbrances indicate an overdraft of the departmental or project budget, purchase orders are not released until an appropriation adjustment, approved bythe ■ City Council, is made to ensure that adequate funding is available. ■ General Fund Balance. The fund balance of the General Fund decreased by 6.02 percent in the fiscal year ended June 30,1991, before the transfer of this balance to the Appropriation Reserve as required ■ by City policy. ■ Enterprise Operations. The Cityhad three enterprise operations as ofJune 30,1991: Water, Marinapark ■ and Cannery Village Parking. An analysis of the City Enterprise Fund operations indicate the following results for fiscal year 1990 -91: ■ The Water enterprise operation reported net income of $1,785,846 which included non - operating ■ interest income of $884,235 and operating income of $822,250. The majority of this income is being placed in reserve for future water sources. ■ The Marinapark enterprise operation reported a net loss of $13,207 after transferring $482,622 to the ■ City's General Fund as of June 30,1991. Total operating income for the City's Marinapark operations ■ for the 1990 -91 fiscal year was $469,415. ■ The Cannery Village Parking enterprise operation reported net income of $63,515 for the fiscal year ending June 30, 1991. This income will be used to pay for parking facility certificates of participation ■ in future years. Interest of $36,285 was paid on the certificates during this fiscal year. ■ Defined Benefit Pension Plan. The City contracts with the California Public Employee's Retirement System (PEAS) to provide certain retirement, disability, death and survivor benefits for full -time City ■ employees. The annual actuarial valuation by PERS reflects a required increase in the City's funding of the system. The City's actuarially determined contribution rate for Safety members increased 10.9 ■ percent from 11.487 percent in fiscal year 1990 to 12.742 percent in fiscal year 1991. The contribution ■ rate for Miscellaneous members increased 11.2 percent from 5.435 percent in fiscal year 1990 to 6.042 percent in fiscal year 1991. ■ Casb Management. It is the City's policy to meet all its financial obligations in a timely manner. It is ■ also the City's policyto investall temporarily idle short term funds and longerterin reserves in a manner thatwill maximize return without sacrificingsecurity orjeopardizing liquidity requirements. Idle funds ■ were invested in accordance with the Government Code and a formal investment policy filed with the City Council. The policy allows investments in a variety of specific instruments, as well as certain state, ■ county, and private sector investment pools and asset management services. Certificates of deposit, ■ demanddeposits, bankers acceptances, U.S. GovenimentandAgencySecurities, repurchase agreements, commercial paper, and the Local Agency Investment Fund (State Pool) are examples. ■ The fiscal year endedJune 30, 1991 was one of significant change for the City's investment portfolio. ■ The graphs on the following page depict that change. ■ ■ ■ ix Composition of Investment Portfolio Wells Fargo Asset Management EXIM Bank Liquid Asset Management Total June 30, 1990 0 Certificates of Deposit M Local Agency Investment Fund ® Institutional Treasury a Wells Fargo Asset Management Management $0 $0 $0 $51,000,000 June 30, 1991 $8,221,266 $1,471,576 $8,035,311 r ■ ■ ■ ■ ■ ■ ■ ■ ■ $50,911,832 ■ ® Orange County Investment M Los Angeles County Pool Pool Liquid Asset Managemenr ® EXIM Bank OnJune 30,1990, the City's funds were invested exclusively in certificates of deposit andwith the Local Agency Investment Fund. OnJune 30,1991, only a small percentage ofthe City's investments remained in certificates of deposit. During the course of the year, short-term transitional investments were made in bankers acceptances, commercial paper, repurchase agreements, Federal Agency Securities, and other instruments. In some cases, investmentswere designedtotake advantage ofseasonal fluctuations in certain segments of the market. By year end, the portfolio had been largely converted to a program designed to place most of the funds with three government pools and four private sector asset/ investment management firms. Each of these intermediaries is constrained to an investment program at least as restrictive as the policy governing the City's direct investments. Additionally, with regard to the private sector fimvs, all cash or securities managed by them on the City's behalf are held by well established and highly reputable third party custodians. x ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ June 30, 1990 June 30, 1991 Certificates of Deposit $41,000,000 $999,000 Local Agency Investment Fund $10,000,000 $10.000,000 Orange County Investment Pool $0 $10,129,273 Los Angeles County Pool $0 $4,026,793 Institutional Treasury Management $0 $8,028,613 Wells Fargo Asset Management EXIM Bank Liquid Asset Management Total June 30, 1990 0 Certificates of Deposit M Local Agency Investment Fund ® Institutional Treasury a Wells Fargo Asset Management Management $0 $0 $0 $51,000,000 June 30, 1991 $8,221,266 $1,471,576 $8,035,311 r ■ ■ ■ ■ ■ ■ ■ ■ ■ $50,911,832 ■ ® Orange County Investment M Los Angeles County Pool Pool Liquid Asset Managemenr ® EXIM Bank OnJune 30,1990, the City's funds were invested exclusively in certificates of deposit andwith the Local Agency Investment Fund. OnJune 30,1991, only a small percentage ofthe City's investments remained in certificates of deposit. During the course of the year, short-term transitional investments were made in bankers acceptances, commercial paper, repurchase agreements, Federal Agency Securities, and other instruments. In some cases, investmentswere designedtotake advantage ofseasonal fluctuations in certain segments of the market. By year end, the portfolio had been largely converted to a program designed to place most of the funds with three government pools and four private sector asset/ investment management firms. Each of these intermediaries is constrained to an investment program at least as restrictive as the policy governing the City's direct investments. Additionally, with regard to the private sector fimvs, all cash or securities managed by them on the City's behalf are held by well established and highly reputable third party custodians. x ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ in ■ • As it turned out, the timing of this new investment strategy served the City well. Despite a substantial decline in general interest rates, and a smaller amount available for investment, the $4,282,772 total earnings on investments during 1990 -91 is virtually identical (within 1.5 %) to the total earnings on investment during 1989 -90. The approximate average return on investment of 8.669% during 1990 -91 . represents a significant increase over the prior year figure. 0 0 Comparative Performance of Investment Portfolio 0 • 4.0006 N 2.00% . 0.00% June 30, 1990 June 30, 1991 %Change -4.00% Average Amount Available for Investment $50,925,000 $48,779,000 4.17% Total Earnings on Investment $4,349,719 $4,282,772 -1.54% . Average Prime Rate for the year 10.34% 8.96% - 13.38% Average Rate of Return on Investment 8.54% 8.78% 2.W% Percentage Change 1989 -90 to 1990 -91 • 4.0006 N 2.00% . 0.00% -2.00% -4.00% 0 -6.00% . -8.00% - 10.00% - 12.00°$ . - 14.00% N N Average Total Average Average Amount Earnings on Prime Rate Rate of Available for Investment for the year Return on Investment Investment ■ Risk Management. The City maintains a risk management program which is a combination of self - insured retention and written policies. As part of this program, resources are being accumulated in the ■ General Fund to meet potential losses. The City is currently self insured for all types of losses, including workers' compensation and liability claims. xi Other Information IndependentAudit. TheCity Charterrequires an annualauditof the financial statements of allaccounts of the City by an independentcenified public accountant. Accordingly, this ,year's auditwas completed by Moreland and Associates. In addition to meeting the requirements set forth in the City Charter, the audit also was designed to meet the requirements of the federal Single Audit Act of 1984 and related OMB Circular A -128. The independent auditors' report on the general purpose financial statements, and onthe combiningand individual fund statements and schedules is included in the financial section of this report. The independent auditors' reports related specifically to the single audit are provided under separate cover. Acknowledgements This is the City's first Comprehensive Annual Financial Report. Its preparation could not have been accomplished without the efficient and dedicated services of a number of personnel. The staff of the Finance Department wishes to express special gratitude to Paul Malkemus of the Utilities Department for his tireless and innovative efforts with the graphic displays, layout, and printing; and Dr. Bill Hendricks of The Sherman Library and Gardens for his invaluable assistance with the historical photographs and information. We would also like to express our appreciation to our independent auditors, Moreland and Associates (and their dedicated staff), who contributed far more than just audit expertise to this first -time effort. We would also like to thank, of course, the Mayor and members of the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Robert L. Wynn City Manager Dennis C. Danner Finance Director ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ NEWPORT BEACH CITY OFFICIALS ■ City Council ■ ■ Phil Sansone ■ Mayor ■ Y$ ■ 1R } ■ Evelyn Hart Clarence J. Tumer Ruthelyn Plummer Council Member Mayor Pro Tern Council Member ■ i ii i >]i C_l�f. �T,,, it u• YN':� .. ■ John C. Cox, Jr. Jean Watt John W. Hedges Council Member Council Member Council Member ■ Principal Administrative Officers ■ It ■ Robert L. Wynn ■ Wanda Raggio City Manager Robert H. Burnham City Clerk City Attorney ■ Kenneth J. Delino Deputy City Manager ■ Raimar Schuller ....................................................................... ............................... .......................Building Director DennisC. Danner ................................................................... ............................... ........................Finance Director ■ James R. Reed .................................................................................. ............................... ...........................Fire Chief David E. Niederhaus ......................................................................... ............................... General Services Director ■ La Donna Menitz ..................................................................... ............................... ......................... Library Director David Harshbarger .............................................. ............................... .........................Marine Department Director ■ Ronald A. Whitley ........................................................ ............................... Parks, Beaches, & Recreation Director Duane K. Munson ....................................................................................... ............................... Personnel Director ■ James D. Hewicker ........................................................................................ ............................... Planning Director ArbCampbell .......................................................................................................... ............................... Police Chief ■ Benjamin B. Nolan ........................................................ ............................... .........................Public Works Director RobertJ. Dixon ............. .............................................. ............................... ....................... ..............UtilitiesDirector ■ xiii ■ BUILDING CODE BOARD OF APPEALS I _ _ I ` LIBRARYBOARD I H SERVICE BOARD I I - T- II I II I II I II I PERSONNEL Ptoe lAdminisrrarion I I Brne(ir Managanem Alafc Mananganent II Labor RelaGOns II II II I I LIBRARY IAdmbrisrrztion L— CenVal tibory Brooches I116mry5crvires I I I BUILDING L — Plan Checking Pemdu Inspenians MARINE Ocean Lifeguards Tidelands Upemrions Celboa Yacht Basin Parking W6 ELECTORATE MAYOR CO[INCIL CITY CLERK DEPUTY CITY ATTORNEY CITY MANAGER UTILITIES Wal<r Wastewater el ctrical Telemmmunicadms G.1.5. Project Oil &Gas GENERAL SERVICES Admintstotion building, Fidd & Fquipmenc hlaimanance TmfFic 5igns & Markings Nefto"Reryeling PUBLIC WORKS Engineering Prgmt Management [n gif"ns Traffic. FIRE AdmininnAi.. suppression Prevemion Emergency Medical Services Namrdova materials C - - -:1 11 ELECTED COUNCIL APPOINTED BOARDS COUNCIL &COMMISSIONS APPOINTED my P.B. &R. COMMISSION J ARTS COMMISSION PLANNING COMMISSION -T -- I I I I i I I I PLANNING Curren Planc&Projecrs Adv.Pi eTirrg C,ofrne enr I I I PARKS,BEACHES& RECREATION _ J Pur Ms ,.drtn Recnearlon Seniors Pmgmms FINANCE Acmunnrg Licenses Purchasing Darn pn,".mg POLICE AdnOrn,.don Parrot Traffic DeceI tvc Parking/Animal Control DEPARTMENTS ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Y }} c � y � fr� _ ��.Y C L. All 1 . 610 NEWPORT CENTER DRIVE, SUITE 840 M c, _// NEWPORT BEACH, CALIFORNIA 92660 oreland C7,d4do (714) 760 -9786 CERTIFIED PUBLIC ACCOUNTANTS 2111 PALOMAR AIRPORT ROAD, SUITE 150 ■ CARLSBAD, CALIFORNIA 92009 November 27, 1991 (619) 431 -8476 Honorable City Council of the City of Newport Beach Independent Auditors' Report We have audited the general purpose financial statements of the City of Newport Beach, California as of and for the year ended June 30, 1991, as listed in the table of contents. These financial statements are the responsibility of the City of Newport Beach management. Our responsibility is to express an opinion on these financial . statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion the general purpose financial statements referred to above present ■ fairly, in all material respects, the financial position of the City of Newport Beach at June 30, 1991 and the results of its operations and the cash flows of its proprietary fund type for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 3 to the financial statements, the City has changed its method of accounting for general fixed assets as of July 1, 1990. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund, and individual account group financial statements and schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Newport Beach. The information has been subjected to the . auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general M purpose financial statements taken as a whole. M ■ 1 ■ B. ■ ■ i / / / / i i / / / / ■ - COMBINED STATEMENTS ,1 Y ➢ 9 g � F G xi � 3 B. ■ ■ i / / / / i i / / / / CITY OF NEWPORT BEACH Combined Balance Sheet - All Fund Types and Account Groups June 30, 1991 Assets and Other Debits Cash and investments (Note 2) Accounts receivable and accrued revenues Due from other governments Due from other funds (Note 10) Inventories of materials and supplies, at cost Other assets Fixed assets (Note 3) Amount to be provided for payment of general long -term debt Total Assets and Other Debits Liabilities. Fund Equity and Other Credits Liabilities: Accounts and contracts payable Accrued payroll Due to other funds (Note 10) Deferred revenue Due to bondholders Deposits Deferred compensation (Note 8) Long -term debt (Note 5) Total Liabilities Fund Equity and Other Credits: Contributed capital (Note 4) Investment in general fixed assets Retained earnings: Unreserved Fund balances (Note 12): Reserved Unreserved, designated Unreserved, undesignated Total Fund Equity and Other Credits Total Liabilities, Fund Equity and Other Credits See Accompanying Notes to Financial Statements. 2 Governmental Fund Types $ 30,392,001 $ 14,947,927 $ 53,563 $ 4,509,276 $ 717,590 $ 165 1,178,751 165,934 587,084 898,547 10,540 2,436,428 433,335 85,303 8,124,455 1,914,483 984,015 3,873,137 2,199,255 18,394,409 11,065,925 53,563 (231,736) (984,015) 22,267,546 13,033,444 (930,452) $ 30,392,001 $ 14,947,927 $ 53,563 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Special Capital General Revenue Projects $ 25,463,524 $ 12,128,092 $ 53,563 3,105,007 848,316 1,389,357 1,520,966 582,162 302,504 $ 30,392,001 $ 14,947,927 $ 53,563 $ 4,509,276 $ 717,590 $ 165 1,178,751 165,934 587,084 898,547 10,540 2,436,428 433,335 85,303 8,124,455 1,914,483 984,015 3,873,137 2,199,255 18,394,409 11,065,925 53,563 (231,736) (984,015) 22,267,546 13,033,444 (930,452) $ 30,392,001 $ 14,947,927 $ 53,563 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Proprietary Fiduciary Fund Type Fund Type Account Groups General General Totals Fixed Long -Term (Memorandum Only) Enterprise Agency Asets Debt 1991 1990 $ 12,551,170 $ 11,375,450 $ 61,571,799 $ 62,213,677 1,678,763 5,632,086 4,595,475 1,389,357 3,055,635 2,103,128 582,162 52,628 355,132 366,057 560,775 560,775 560,775 19,494,309 $ 67,075,260 86,569,569 80,568,917 $ 12,104,977 12,104,977 11,592,861 $ 33,776,870 $ 11,936,225 $ 67,075,260 $ 12,104,977 $ 170,286,823 $ 163,535,559 $ 659,056 260,876 617,497 7 $ 23,017 148,853 11,913, 208 402,289 2,088,578 11,936,225 4,305,444 $ 67,075,260 27,382,848 $ 5,886,087 $ 6,503,223 1,605,561 1,482,866 2,103,128 582,162 10,547 778,091 23,017 15,646 3,103,919 4,573,823 11,913,208 10,214,382 $ 12,104,977 12,507,266 12,141,861 12,104,977 37,152,733 36,292,054 4,305,444 67,075,260 27,382,848 6,072,392 29,513,897 (1,215, 751) $ 3,728,944 61,841,423 25,546,694 8,707,005 27,419,439 31,688,292 67,075,260 133,134,090 127,243,505 $ 33,776,870 $ 11,936,225 $ 67,075,260 $ 12,104,977 $ 170,286,823 $ 163,535,559 3 CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types For the Year Ended June 30, 1991 Revenues: Taxes Licenses, fees and permits Intergovernmental revenue Charges for services Fines, forfeitures and penalties Revenue from use of money and property Contributions from property owners Other Total Revenues Expenditures: Current General government Public safety Public works Community development Libraries Parks, beaches and recreation Capital expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Proceeds from long —term debt Total Other Financing Sources (Uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances, July 1, as restated (Note 13) Fund Balances, June 30 See Accompanying Notes to Financial Statements. Governmental Fund Types Special Capital General Revenue Projects $ 34,640,298 $ 5,838,937 1,939,360 868,819 3,522,530 7,506,474 3,635,112 1,153,920 (1,427,200) 3,114, 983 3,903,412 6,096,004 1,670,700 1,418,184 49,311,412 25,997,321 6,430,074 871,196 26,911,630 17,247,313 $ 466,815 ARC 04C 183,327 3,061,009 4,222,291 8,958,787 8,978,638 1,561,968 59,547,804 17,316,461 1,561,968 (10,236,392) 8,680,860 (1,095,153) 8,477,648 54,538 26,075 (80,613) (7,995,026) 412,157 8,809,192 (7,940,488) 26,075 (1,427,200) 740,372 (1,069,078) 23,694,746 12,293, 072 138,626 $ 22,267,546 $ 13,033,444 $ (930,452) 4 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Totals (Memorandum Only) 1991 1990 $ 40,479,235 $ 38,389,789 2,808,179 2,653,730 11,029,004 16,336,483 4,789,032 4,916,955 3,114,983 3,376,570 9,999,416 9,766,006 466,815 1,399,611 3,088,884 2,441,088 75,775,548 79,280,232 7,301,270 26,911,630 17,247,313 183,327 3,061,009 4,222,291 5,365,259 26,729,452 15,804,705 185,924 2,819,616 3,790,101 19,499,393 23,611,143 78,426,233 78,306,200 (2,650,685) 974,032 8,558,261 7,818,781 (8,075,639) (7,360,779) 412,157 894,779 458,002 (1,755,906) 1,432,034 36,126,444 34,694,410 $ 34,370,538 $ 36,126,444 i CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General and Special Revenue Funds For the Year Ended June 30, 1991 Revenues: Taxes Licenses, fees and permits intergovernmental revenue Charges for services Fines, forfeitures and penalties Revenue from use of money and property Other Total Revenues Expenditures: Current General government Public safety Public works Community development Libraries Parks, beaches and recreation Capital expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Proceeds from long -term debt Total Other Financing Sources (Uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances, July 1, as restated (Note 13) Fund Balances, June 30 See Accompanying Notes to Financial Statements. E General Fund Variance Budget Actual (Unfavorable) $ 35,311,100 $ 34,640,298 $ (670,802) 1,784,225 1,939,360 155,135 3,217,785 3,522,530 304,745 4,915,675 3,635,112 (1,280,563) 2,998,840 3,903,412 904,572 1,828,480 1,670,700 (157,780) 50,056,105 49,311,412 (744,693) 5,020,798 25,613,659 16,750,495 6,430,074 26,911,630 17,247,313 (1,409,276) (1,297,971) (496,818) 18,318,373 8,958,787 9,359,586 65,703,325 59,547,804 6,155,521 (15,647,220) (10,236,392) 5,410,828 8,477,648 8,477,648 (80,613) (80,613) 412,157 412,157 8,809,192 8,809,192 (15,647,220) (1,427,200) 14,220,020 23,694,746 23,694,746 $ 8,047,526 $ 22,267,546 $ 14,220,020 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Special Revenue Funds Variance Budget Actual (Unfavorable) $ 6,009,565 $ 5,838,937 $ (170,628) 874,000 868,819 (5,181) 10,187,068 7,506,474 (2,680,594) 965,565 1,153,920 188,355 3,572,000 3,114,983 (457,017) 5,523,430 6,096,004 572,574 1,195,011 1,418,184 223,173 28,326,639 25,997,321 (2,329,318) 768,900 871,196 (102,296) 458,198 183,327 274,871 3,155,138 3,061,009 94,129 3,893,920 4,222,291 (328,371) 19,895,103 8,978,638 10,916,465 28,171,259 17,316,461 10,854,798 (1,092,208) 3,572,000 3,114,983 1CC lon a Con orn o CoC Aon 54,538 54,538 (7,995,026) (7,995,026) (7,940,488) (7,940,488) 155,380 740,372 584,992 12,293,072 12, 293,072 $ 12,448,452 $ 13,033,444 $ 584,992 7 Totals (Memorandum Only) 7,301,270 (1,511,572) Variance Budget Actual (Unfavorable) $ 41,320,665 $ 40,479,235 $ (841,430) 2,658,225 2,808,179 149,954 13,404,853 11,029,004 (2,375,849) 5,881,240 4,789,032 (1,092,208) 3,572,000 3,114,983 (457,017) 8,522,270 9,999,416 1,477,146 3,023,491 3,088,884 65,393 78,382,744 75,308,733 (3,074,011) 5,789,698 7,301,270 (1,511,572) 25,613,659 26,911,630 (1,297,971) 16,750,495 17,247,313 (496,818) 458,198 183,327 274,871 3,155,138 3,061,009 94,129 3,893,920 4,222,291 (328,371) 38,213,476 17,937,425 20,276,051 93,874,584 76,864,265 17,010,319 (15,491,840) (1,555,532) 13,936,308 8,532,186 8,532,186 (8,075,639) (8,075,639) 412,157 868,704 868,704 (15,491,840) (686,828) 14,805,012 35,987,818 35,987,818 $ 20,495,978 $ 35,300,990 $ 14,805,012 CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Type— Enterprise Funds For the Year Ended June 30, 1991 Operating Revenues: Charges for services Other Total Operating Revenues Operating Expenses: Purchase of water Salaries and wages Depreciation Professional services Maintenance and supplies Systems maintenance Other Total Operating Expenses Operating Income Nonoperating Revenues (Expenses): Intergovernmental revenue Interest income Other income Interest expense Total Nonoperating Revenues (Expenses) Income Before Operating Transfers Operating transfers out Net Income Retained Earnings, July 1, as restated (Note 13) Retained Earnings, June 30 See Accompanying Notes to Financial Statements. fJ 1991 1990 $ 9,955,254 $ 9,054,486 80,499 99,537 10,035,753 9,154,023 4,576,746 1,691,095 567,109 667,000 276,506 686,526 198,893 4,757,790 1,526,502 536,563 616,636 282,865 562,367 175,517 8,663,875 8,458,240 1,371,878 695,783 12,690 65,476 903,822 881,809 67,075 84,389 (36,689) (51,496) 946,898 980,178 2,318,776 1,675,961 (482,622) (458,002) 1,836,154 1,217,959 25,546,694 24,328,735 $ 27,382,848 $ 25,546,694 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Combined Statement of Cash Flows Proprietary Fund Type- Enterprise Funds For the Year Ended June 30, 1991 See Accompanying Notes to Financial Statements 1991 1990 Cash flows from operating activities: Operating income $ 1,371,878 $ 695,783 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 567,109 536,563 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (300,902) 39,446 Decrease in due from other governments 12,697 Decrease in inventories of materials and supplies, at cost 14,022 55,387 (Decrease) in accounts payable (193,989) (95,503) Increase in accrued payroll 53,757 48,386 (Decrease) in deferred revenue (12,690) Increase in deposits 17,575 6,572 Total adjustments 157,579 590,851 Net cash provided by operating activities 1,529,457 1,286,634 Cash flows from noncapital financing activities: Intergovernmental revenues 12,690 65,476 Other non - operating revenues 67,075 86,408 Operating transfers to other funds (482,622) (458,002) Net cash (used for) noncapital financing activities (402,857) (306,118) Cash flows from capital and related financing activities: Proceeds from the sale of equipment 4,429 Acquisition of capital assets (757,424) (1,974,758) Principal paid on note payable (6,711) (6,872) Interest paid on note payable (404) (667) Principal paid on certificates of participation (140,000) (135,000) Interest paid on certificate of participation (36,285) (50,829) Net cash used for capital and related financing activities (940,824) (2,163,697) Cash flows from investing activities: Interest on investments 903,822 881,809 Net increase(decrease)in cash and cash equivalents 1,089,598 (301,372) Cash and cash equivalents, July 1 11,461,572 11,762,944 Cash and cash equivalents, June 30 $ 12,551,170 $ 11,461,572 See Accompanying Notes to Financial Statements fi JF: �w jr- NoTEs To FINANCIAL STATEMENTS- A. - ---- --- --- A. CITY OF NEWPORT BEACH Notes to Combined Financial Statements June 30, 1991 1. Summary of Significant Accounting Policies The financial statements of the City of Newport Beach have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. Description of Reporting Entity The financial statements of the City of Newport Beach include only the financial activities of the City. The City Council does not have a continuing oversight responsibility over any other entity. Oversight responsibility was considered on the basis of budget adoption, taxing authority, funding and appointments of the . governing board. The City of Newport Beach was incorporated September 1, 1906 under the General Laws of the State of California. The City operates under a Council- Manager form of government and provides the following services: public safety (police and fire), highway and streets, cultural and recreation, public improvements, planning and zoning, and general administrative services. Description of Funds and Accounting System • Governmental accounting systems are organized and operated on a fund basis. A fund is defined as an independent fiscal and accounting entity with a self- balancing set of accounts recording cash and other financial resources, togetherwith all related . liabilities and residual equities or balances, and changes therein, which are segregated for the purposes of carrying out specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The accompanying financial statements reflect the following fund types used by the City of Newport Beach: . Governmental Fund Types General Fund - Used to account for all financial resources, except those required to be accounted for in another fund. Special Revenue Funds - Used to account for the proceeds of specific revenue sources or to finance specified activities as required by law or administrative ■ regulation. Capital Projects Funds - Used to account for financial resources used for the acquisition of major capital facilities other than those financed by proprietary funds. � 11 ■ CITY OF NEWPORT BEACH ■ Notes to Combined Financial Statements (Continued) June 30, 1991 Proprietary Fund TyK Enterprise Funds - Used to account for operations that provide services to . the general public that are financed primarily by user charges or where the periodic measurement of net income is deemed appropriate. Fiduciary Fund Tvce a Agency Funds - Used to account for assets held by the City as an agent for private organizations, other governmental units and /or other funds. ■ Account Groups General Fixed Assets Account Group - Used to maintain control and cost information of capital assets owned by the City, other than fixed assets used in proprietary funds. General Long -Term Debt Account Group - Used to record long -term debt of the City, except for debt issued to further the operations of the City's proprietary fund type. Basis of Accountine The accounting and financial reporting treatment applied to a fund is determined ■ by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financial sources) and decreases (i.e., expenditures and other financing uses) in net current ■ assets. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases ■ (e.g., revenues) and decreases (e.g., expenses) in net total assets. The modified accrual basis of accounting is followed for the governmental and fiduciary fund types (General, Special Revenue, Capital Projects and Agency Funds). Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual; ie, when they become measurable and available to finance expenditures of the current period or soon enough thereafter . to be used to pay liabilities of the current period. The City considers property taxes as available if they are remitted within 60 days after the year end. Sales taxes are 12 E V S CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 considered available if they are remitted within 30 days after the year end Other revenues considered susceptible to accrual include interest income and charges for services. licenses and permits, fines and forfeitures and other taxes are not susceptible to accrual because they are not measurable until received in cash. Grant revenues have been recorded according to the provisions of GASB Cod. Sec.G60.112, whereby grant funds earned but not received are recorded as a receivable, and grants received before the related revenue recognition criteria have been met are reported as deferred revenues. Expenditures are recorded when the related fund liability is incurred, except that principal and interest on general long- term debt is recognized when due. The long -term liability to be paid from governmental funds' resources for accumulated unpaid vacation, sick pay, and compensatory time is recorded in the General Long -Term Debt Account Group, . as it is expected to be paid from future resources. The full accrual method of accounting is followed by the City's proprietary fund type (Enterprise Funds). Proprietary fund types are accounted for on an "income determination" or "cost of service" measurement focus. Accordingly, all assets and liabilities are included in their respective balance sheets, and the reported fund equity (total reported assets, less total reported liabilities) provides an indication ■ of the economic net worth of the fund. Operating statements for proprietary fund types (on an income determination measurement focus) report increases (revenues) and decreases (expenses) in determining total economic net worth. Under this determination, unbilled service receivables are recorded at year -end. Budgetary Control and Accounting . The City adheres to the following general procedures in establishing the budgetary data reflected in the financial statements: • During April, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted at City Council meetings to obtain . taxpayer comments. Prior to July 1, the budget is legally adopted through passage of an appropriation resolution. • The City Manager is authorized to transfer budget amounts between accounts within a fund other than for capital outlay. Transfers of appropriations between funds or transfers other than those authorized above may be made . only by the authority of the City Council. Total fund expenditures may not . exceed total fund budgeted amounts without approval from the City Council. The budget is formally integrated into the accounting system and employed as a management control device during the year. 13 CITY OF NEWPORT BEACH . Notes to Combined Financial Statements (Continued) June 30, 1991 - Budgets for the General and Special Revenue Funds are adopted on a basis ■ consistent with generally accepted accounting principles. The modified accrual basis of accounting is employed in the preparation of the budget. Capital projects are budgeted on a project basis rather than on an annual basis. r Encumbrances Encumbrance accounting for the expenditure of funds is recorded in order to . indicate outstanding commitments and is employed in the governmental fund types. Encumbrances outstanding atyear end are reported as reservations of fundbalances since they do not constitute expenditures or liabilities. These items are carried over to the subsequent year in order to complete these transactions. Cash and Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents. Investments Investments are stated at cost except for investments of the deferred compensation plan which are stated at market value. (See Notes 2 and 8.) Inventories In governmental funds, inventories are valued at cost on a first -in, first -out basis. The City follows the consumption method for inventory control. Inventory items are reported as expenditures when consumed. In proprietary funds, inventories are valued at the lower of cost or market on a first -in, first -out basis. General Fixed Assets The general fixed assets of the City are accounted for in a separate self- balancing account group described as the "General Fixed Assets Account Group." These general fixed assets are capitalized at historical cost or, in the case of gifts or contributions, at estimated fair market value at time of receipt by the City. Fixed assets acquired through lease obligations are valued at the present value of future . lease payments at the date acquired. No depreciation is required to be recorded on general fixed assets. 14 r] ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) ■ June 30, 1991 ■ ■ The City has elected not to capitalize the cost of building or acquiring infrastructure fixed assets (e.g., streets, bridges, curbs and gutters, sewers and storm drains, ■ sidewalks and light systems). Consequently, these items are not reflected in the City's combined financial statements. ■ Enterprise Funds Fixed Assets ■ ■ Fixed assets of the City's enterprise funds are recorded at historical cost or estimated fair market value at date of contribution. ■ Depreciation has been provided over the estimated useful lives using the straight- line method. The estimated useful lives are as follows: ■ Structures 30 to 75 years ■ Equipment 6 to 30 years ■ Self- Insurance Program (Claims and Judgments ■ As of April 1, 1986, the City became self - insured for all workers' compensation ■ claims and general liability claims against the City. Prior to April 1, 1986, the City had insurance coverage of $500,000 to $20,000,000 for general liability claims. At ■ June 30,1991, the City was defendant in a number of lawsuits arising in the ordinary course of operations which allege liability on the part of the City. Liabilities ■ associated with the self - insurance program are accrued when incurred in the proprietary funds (using the accrual basis of accounting). Such amounts are also ■ accrued in the governmental funds (using the modified accrual basis of accounting), ■ to the extent that the liability is to be paid from available financial resources. Liabilities to be paid from future financial resources are included in the General ■ Long -Term Debt Account Group (See Note 5). ■ Vacation and Sick Leave (Compensated Absences ■ In governmental funds, compensated absences are recorded as expenditures in the ■ year paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. ■ Accordingly, the entire unpaid liability for governmental funds is recorded in the General Long -Term Debt Account Group. Compensated absences in the enterprise ■ funds are recorded as liabilities in the applicable funds. ■ Capitalized Lease Obligations ■ The City accounts for capitalized leases in the governmental fund types in ■ accordance with the provisions of GASB Cod. Sec. L20. When a capital lease represents the acquisition or construction of a general fixed asset, the acquisition ■ ■ 15 ■ 2. ■ CITY OF NEWPORT BEACH ■ Notes to Combined Financial Statements (Continued) June 30, 1991 ■ ■ or construction of the general fixed asset will be recorded both as a capital ■ expenditure and as an other financing source. Subsequent lease payments are accounted for in a manner consistent with the accounting treatment for payments ■ of general obligation debt. ■ Proper Taxes ■ The assessment, levy and collection of property taxes are the responsibility of the ■ County of Orange. The City records property taxes as revenue when received from the County, except at year end, when property taxes received within 60 days are ■ accrued as revenue. ■ Property taxes are assessed and collected each fiscal year according to the following . property tax calendar: ■ Lien March 1 Levy July 1 to June 30 Due November 1 - 1st installment March 1 - 2nd installment ■ Collection December 10 - 1st installment ■ April 10 - 2nd installment Comparative Data. ■ Comparative total data for the prior year have been presented in the accompanying ■ financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior ■ year totals by fund type) data have not been presented in each of the statements ■ since their inclusion would make the statements unduly complex and difficult to read. Certain reclassifications have been made to prior year financial data to ■ conform with current year presentation. ■ Total Columns on Combined Statements: ■ Total columns on the combined statements are captioned Memorandum Only to ■ indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows ■ in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the ■ aggregation of this data. ■ Cash and Investments ■ Cash and investments at June 30, 1991 consisted of the following: ■ Cash $ (937,050) ■ ■ 16 ■ ■ At no time during the fiscal year did the City borrow funds through the use of reverse - repurchase agreements. 17 Securities of the U. S. Government, or its agencies CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 Repurchase Agreements and Reverse Repurchase Agreements . Certificates of deposit 999.000 . Total Pooled Cash and Certificates of Deposit 61,950 Negotiable Certificates of Deposit Pooled investments 49,912,834 Cash and investments with fiscal agent 244,582 ■ Cash and investments - deferred compensation plan 11.352,433 • Total Cash and Investments $61.571.799 The City follows the practice of pooling cash and investments of all funds except . for funds required to be held by outside fiscal agents under the provisions of ■ certificates of participation and funds in its deferred compensation plan. Interest income earned on pooled cash and investments is allocated annually to the various funds based on average cash balances. Interest income from cash and investments of funds excluded from pooled cash is credited directly to the related fund. ■ Authorized Deposits/Investments Under provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City may deposit and invest in the following: ■ At no time during the fiscal year did the City borrow funds through the use of reverse - repurchase agreements. 17 Securities of the U. S. Government, or its agencies Certificates of Deposit (or Time Deposits) Bankers Acceptances Local Agency Investment Demand Deposit (State Pool) Repurchase Agreements and Reverse Repurchase Agreements Passbook Savings Account Demand Deposits . Small Business Administration Loans Commercial paper Negotiable Certificates of Deposit County Investment Pools Medium Term Corporate Notes . Asset/Investment Management Agreements ■ At no time during the fiscal year did the City borrow funds through the use of reverse - repurchase agreements. 17 CITY OF NEWPORT BEACH ■ Notes to Combined Financial Statements (Continued) June 30, 1991 ■ ■ Pooled Deposits /Credit Risk ■ The California Government Code requires California banks and savings and loan ■ associations to secure a city's deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a ■ city's deposits. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of a city's total ■ deposits. ■ The City may waive collateral requirements for deposits which are fully insured up ■ to $100,000 by federal depository insurance. ■ In accordance with GASB Statement 3, deposits are classified as to credit risk by three categories as follows: ■ Category 1: ■ Insured or collateralized with securities held by the entity or by its agent in the ■ City's name. ■ Category 2: Collateralized with securities held by the pledging financial institution's trust ■ department or agent in the City's name. ■ Category 3: ■ Uncollateralized. ■ Credit Risk, Carrying Amount. and Market Value of Investments ■ The investments that are represented by specific identifiable investment securities ■ are classified as to credit risk by three categories as follows: ■ Category 1: Insured or registered, or securities held by the City or its agent in the City's ■ name. ■ Category 2: ■ Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. ■ Category 3: ■ Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. ■ ■ ■ 18 ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 The table below summarizes the credit risks, carrying amounts, and market values of cash and investments at June 30, 1991. Deposits: Demand Deposits Certificates of Deposit Total Deposits Pooled Investments: Certificates of Deposit Export/Import Note Repurchase Agreements Government Securities Corporate Obligations Money Market State of California Local Agency Investment Fund Orange County Pooled Fund Los Angeles County Pooled Fund Total Pooled Investments Cash and Investments with Fiscal Agents: Money Market Certificates of Deposit Total with Fiscal Agents Deferred Compensation Fund: Mutual funds Cash and Investments Outstanding Checks Cash on Hand Deposits in Transit Book Balance Category 1 2 3 $ 200,000 $ 1,383,582 399,000 600,000 599,000 1,983,582 6,072,344 1,001,160 8,990,421 16,063,925 Bank Balance/ Carrying Market Amount value $ 1,583,582 $ 1,583,582 999,000 999,000 2,582,582 2,582,582 $ 1,029,500 1,029,500 1,029,500 1,471,576 1,471,576 1,471,576 836,000 836,000 836,000 5,631,822 11,704,166 11,779,160 500,785 1,501,945 1,514,855 223,160 9,213,581 9,213,581 TIXIDUXIIXTI�13 U110100" 10,129,273 * 10,129,273 4,026,793 * 4,026,793 9,692,843 49,912,834 50,000,738 165,082 165,082 165,082 79,500 79,500 79,500 244,582 244,582 244,582 $ 16,662,925 $ 1,983,582 $ 9,937,425 * Not subject to categorization. 19 11,352,433 * 11,352,433 64,092,431 $ 64,180,335 (2,863,225) 3,715 338,878 $ 61,571,799 3. 9 CITY OF NEWPORT BEACH . Notes to Combined Financial Statements (Continued) June 30, 1991 Fixed Assets A summary of the changes in general fixed assets is as follows: . Balance July 1, 1990, Balance (Restated)* Additions Deletions June 30. 1991 Automotive $11,358,777 $1,577,855 $801,950 $12,134,682 Land 15,225,373 15,225,373 . Structures 28,941,983 2,897,094 31,839,077 Equipment 6.315.290 1,587.248 26.410 7.876.128 61 841423 6 062197 828 360 67 075 260 r General fixed assets have been restated (increased $2,252,732) from the amount previously reported as of July 1, 1990, for a change in accounting principle . recording all fixed assets at their historical cost except for contributed or donated assets which are recorded at their estimated fair market value at the time of receipt by the City. Previously the City recorded certain land, structures, and improvements acquired by the City in years prior to July 1, 1966, at market and other appraised values as determined by City officials. A summary of proprietary fund type fixed assets at June 30, 1991 follows: . Enterprise Land $ 3,056,613 Structures 26,786,630 Equipment 1.005.701 30,848,944 Less accumulated depreciation 11 354 635) 19 494 309 � Changes in Contributed Capital The following is a summary of the changes in contributed capital of the enterprise funds for the year ended June 30, 1991. 20 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 Balance, July 1, 1990 Additions Deletions Balance, June 30, 1991 5. Long -Term Debt Cannery Village Water Pia jdng Utility Marinapark Total $3,713,944 576,500 4 290 444 General Long -Term Debt Account Group: $15,000 $3,728,944 576,500 15 000 4 305 444 A summary of the changes in the general long -term debt account group is as follows: Balance Balance June July 1, 1990 Additions Deletions 30, 1991 Claims and judgments payable $ 3,478,254 $2,033,109 $2,000,000 $ 3,511,363 Compensated absences 3,791,762 472,691 4,264,453 Capitalized leases 8201427 412,157 274,128 958,456 Note payable 31398,185 64,708 3,333,477 Loan payable 104.233 67.005 37,228 11592 861 $2,405,841 12104 977 Claims and Judgments: The City is self- insured as described in Note 1. Management of the City and the City Attorney believe that adequate provision has been made in the financial statements to provide for losses associated with claims and judgments. The portion of the liability expected to be liquidated from current (available) resources is recorded as a liability of the related fund. The liability to be paid in future years from future resources is recorded in the general long term debt account group. Compensated Absences: The City's policies relating to compensated absences are described in Note 1. This liability is to be paid in future years from future resources. At June 30, 1991, this liability amounted to $4,264,453. 21 3 511363 4 264 453 ■ CITY OF NEWPORT BEACH ■ Notes to Combined Financial Statements (Continued) June 30, 1991 ■ ■ Capitalized Leases: ■ The City has entered into the following capitalized lease ■ obligations as of June 30, 1991: ■ Fire communications system lease - In December 1988, the City entered into a lease - purchase and operational service ■ agreement with County of Orange for the lease of 800 MHZ fire communication system. The total amount of the lease ■ agreement is $363,882; $85,876 for the backbone system and ■ $278,006 for the field equipment. The terms of the lease are five years, five payments commencing June 1989. The interest ■ rates on this obligation range from 5.4 to 6.5 percent. $158,162 ■ Computer leases - The City entered into several lease- purchase agreements in fiscal years 1986 -87 through 1990 -91 for lease- ■ purchases of a geo base information and mapping system and ■ upgrades to their financial management system software and equipment to upgrade the City's data processing system. The ■ terms of the leases are three and five years which are payable monthly. The interest rates on these obligations range from 7 ■ to 9 percent. 800,294 ■ Total Capitalized Leases $958,456 ■ Note Payable: ■ Note payable to the California Department of Boating and ■ Waterways approved in the amount of $3,300,000. The note ■ is payable in thirty annual installments of $268,600 including interest at 7.9% beginning August 1, 1987. The City received ■ a total of $3,548,748 including deferred interest of $336,015. 3 333 477 ■ Loan Payable: ■ Loan payable to the California Energy Commission for the ■ street light conversion program approved in the amount of $396,900, at an interest rate of 9.5 %. The City actually received ■ $263,541 which is repayable in semi - annual installments of $37,679 including interest. 37 22g ■ The annual requirements to amortize all debt outstanding included in the General ■ Long -Term Debt Account Group other than claims and judgments and ■ compensated absences as of June 30, 1991, including interest payments of $2,443,632 are as follows: ■ 22 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 Year Ending Capitalized Note Loan June 30, Leases Payable Payable Total 1992 $ 341,714 $ 268,599 $40,764 $ 651,077 1993 341,874 268,599 610,473 1994 196,030 268,599 464,629 1995 134,885 268,599 403,484 1996 19,743 268,599 288,342 Thereafter 4,354,788 4,354,788 1034 246 5 697 783 40 764 6 772 793 Enterprise Funds: A summary of the changes in long -term debt of the enterprise funds is as follows: Balance Balance July 1. 1990 Additions Deletions June 30, 1991 Note payable $ 14,000 $ 6,711 $ 7,289 Certificates of Participation 535.000 140.000 395.000 549 000 � 146 711 402 289 The note is payable to the Irvine Ranch Water District for the City of Newport Beach's share of the San Joaquin Reservoir water bonds and is due in annual installments of approximately $7,500 through December 1, 1991. Interest is included in the payment at approximately 3.5 %. Certificates of participation were sold in 1988 to fund, in part, the acquisition and construction of the Cannery Village Parking facility. The owners of the certificates were given an interest as lessees in a base lease of the Cannery Village Parking facility, which in turn was leased back to the City. The lease payments made by the City are held by a trustee who makes semi - annual payments on the certificates of participation. Upon redemption of all certificates the leases are cancelled. Future maturities and interest rates are: February 15, 1992 February 15, 1993 Total Liability Current Portion Long -Term Portion $150,000 6.40% 245.000 6.50% 395,000 150.000 245 000 23 G� 7. CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 Special Assessment Bonds In 1990 Cannery Village Special Assessment District No. 58 and Corona Highlands Special Assessment District No. 57 issued $107,746 and $938,598 of bonds, respectively, to fund certain capital improvements. Bonds outstanding at June 30, 1991 are $107,746 and $781,569, respectively. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds, and therefore the bonded indebtedness is not shown in the financial statements of the City. Segment Information for Enterprise Activities There are three services provided by the City which are financed primarily by user charges - parking, water services and a mobile home facility. These services are accounted for in separate enterprise funds. The key financial data for the year ended June 30, 1991 for these three Enterprise Funds are as follows: Operating revenues Operating expenses: Depreciation Other Operating income Operating transfers (out) Net income (loss) Current capital contributions Property, plant and equipment: Additions (Deletions) Net working capital Total assets Long -term debt Total equity Cannery Village Parkins Water Marinapark Total $ 84,512 $ 9,389,904 $561,337 $10,035,753 41299 551,210 8,016,444 801213 822,250 63,515 1,785,846 576,500 (763,628) 1,138,308 395,000 126,305 24 1,348,852 (14,928) 13,202,611 32,457,753 7,289 31,418,912 11,600 80,322, 469,415 (482,622) (13,207) 143,075 567,109 8,096,766 1,371,878 (482,622) 1,836,154 576,500 1,348,852 (14,928) 12,438,983 33,776,870 402,289 31,688,292 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) ■ June 30, 1991 ■ ■ 8. Deferred Compensation Plan ■ The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, ■ permits them to defer a portion of their salary until future years. The deferred ■ compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. ■ All amounts of compensation deferred under the plan, all property and rights ■ purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other ■ beneficiary) solely the property and rights of the City (without being restricted to the . provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors ■ of the City in an amount equal to the fair market value of the deferred account for each participant. ■ The City has no liability for losses under the plan but does have the duty of due care ■ that would be required of an ordinary prudent investor. The City believes that it is ■ unlikely that it will use the assets to satisfy the claims of general creditors in the future. Assets of the fund totaled $11,913,208 at June 30, 1991. ■ 9. Retirement Plan ■ ■ Plan Description ■ The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple - employer public employee retirement system that acts ■ as a common investment and administrative agent for participating public entities within the State of California. The City's payroll for employees covered by the ■ System for the year ended June 30, 1991 was $30,091,677. The total payroll for the ■ year was $35,766,694. ■ All full-time and part-time benefitted City employees are eligible to participate in the System. Part-time non - benefitted hourly employees do not participate in the ■ System. Benefits vest after five years of service. City public safety employees who retire at or after age fifty, and miscellaneous (non - safety) employees who retire at ■ or after age sixty, with five years of credited service are entitled to an annual ■ retirement benefit, payable monthly for life, in an amount that varies from 2 percent at age fifty to a maximum of 2.7 percent at age sixty for safety employees (in an ■ amount that varies from 1.092 percent at age fifty to a maximum of 2.418 percent at age sixty of the highest year's salary for non -safety employees) for each year of ■ credited service. The system also provides death and survivor's benefits. These ■ benefit provisions and all other requirements are established by State statute and City ordinance. ■ 25 ■ ■ CITY OF NEWPORT BEACH ■ Notes to Combined Financial Statements (Continued) June 30, 1991 Employee and Employer Contribution Obligations: The City makes all of the contributions required of City employees on their behalf and for their account. The rates are set by statute and therefore remain unchanged from year to year. The present rates are: Member Rates as a Category Percentage of Wages Local miscellaneous members 7% Local safety members 9% The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial losses recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step - rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of the System on a going - concern basis, assess progress made in accumulating sufficient assets to ■ pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the System. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1991. Significant actuarial assumptions used in the valuation include (a) a rate return on the investment of present and future assets ■ of 8.5 percent a year compounded annually, (b) projected salary increases of 5.00 percent a year compounded annually, attributable to inflation, (c) additional projected salary increases of 2.00 percent a year, attributable to seniority /merit, and (d) no post- retirement benefit increases. The total unfunded pension benefit obligation applicable to the City employees was $1,270,172 at June 30, 1991, (based on June 30, 1990 data) as follows: Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $32,506,934 Current Employees: Accumulated employee contributions including allocated investment earnings 26,637,987 26 0 ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) ■ June 30, 1991 ■ ■ Employer- financed vested 36,188,943 Employer - financed non - vested 1,054,765 ■ Total Pension Benefit Obligation 96,388,629 ■ Net Assets Available for Benefits at Cost ■ (Market Value is $107,864,330) 95.118,457 ■ Unfunded Pension Benefit Obligation RLZLO 172 ■ Of the total change in the pension benefit obligation from last year, $6,125,402 ■ resulted from the following: ■ Changes in benefit provisions $3,950,345 ■ Changes in actuarial assumptions 1175.057 ■ Total 6125 402 ■ Actuarially Determined Contribution Requirements and Contribution Made ■ PERS uses the Entry Age Normal Actuarial Cost Method which is a projected ■ benefit cost method. That is, it takes into account those benefits that are expected to be earned in the future as well as those already accrued. ■ According to this cost method, the normal cost for an employee is the level amount ■ which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Entry Age Cost ■ method in which the employer's total normal cost is expressed as a level percent of ■ payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period of the unfunded actuarial ■ liability ends in the year 2000 for prior service benefits and in the year 2000 for current service benefits. ■ The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit ■ obligation, as previously described. ■ The contributions to the System for fiscal year ended June 30, 1991 of $5,075,307 were made in accordance with actuarially determined requirements computed ■ through an actuarial valuation performed as of June 30, 1989. The contribution ■ consisted of (a) $2,680,440 normal cost (8.9 percent of current covered payroll) and (b) $2,394,867 on behalf of employees (8.0 percent of current covered payroll). Of ■ these amounts $779,693 was funded by the PERS surplus account. ■ ■ 27 ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Within the City's financial statement, ten years of historical trend information are required. 1987 -88 is the first year that this actuarial information has been made available by PERS. Until ten years of data are available, as many years as are available are presented as follows: Wl1 . Net Assets Available for Benefits $95,118,400 $85,574,000 $76,116,800 $66,906,400 Pension Benefit Obligation $96,388,600 $82,421,200 $75,332,400 $68,264,000 Net Assets Available for Benefits Expressed as a Percentage of the Pension Benefit Obligation Assets in Excess of (Unfunded) Pension Benefit Obligation 98.7 % 103.8% 101.0% 98.0% $(1,270,200)$ 3,152,800 $ 784,400 $(1,357,600) Annual Covered Payroll $30,091,700 $27,311,900 $25,191,800 $23,600,400 Assets in Excess of (Unfunded) Pension Benefit Obligation, Expressed as a Percentage of Annual Covered Payroll (4.2 %) Employer Contributions Employer Contributions Expressed as a Percen- tage of Annual Covered Payroll. The contri- butions were made in accordance with actuarially deter- mined requirements 11.7% 3.1% (5.8 %) $2,680,400 $ 2,570,600 $ 2,110,700 $ 2,389,700 M ". 9.4010 8.4% 10.1% ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 10. Interfund Receivables and Payables The following table summarizes interfund receivables and payables at June 30, 1991: Due From Due To Other Funds Other Funds General Fund $1,520,966 Special Revenue Funds - Arterial Highway Fund $ 277,716 Traffic Safety Fund 167,031 Parking Meter Fund 582,162 Tide and Submerged Land Fund 1047877 Community Development Block Grant Fund 37.4 582,162 587.084 Capital Projects Fund 898.547 Enterprise Funds - Cannery Village Fund 582,162 Marinapark Fund 35.335 617,497 Totals 2103128 2103128 11. Individual Fund Disclosures At June 30, 1991, the Arterial Highway Financing and Community Development Block Grant Special Revenue Funds had deficit fund balances of $230,736 and $1,000, respectively. Also, the Assessment District Capital Projects Fund had a deficit fund balance of $984,015. These deficits will be eliminated by future revenues or transfers from other funds. Expenditures of $234,386 exceeded budgeted appropriations of $20,000 in the Federal Adopted Forfeiture Special Revenue Fund. 12. Reserved Fund Balances/Retained Earnings Reservations of fund balances consist of the following: 29 0 CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) June 30, 1991 Special ■ General Revenue Fund Funds Total Encumbrances $3,570,633 $2,199,255 $5,769,888 Inventories 302.504 302,504 3 873 137 2 199 255 6 072 392 . Designations established as of June 30, 1991 are as follows: Special Capital General Revenue Projects Fund Funds Funds Total Contingencies $12,336,561 $12,336,561 Appropriations 6,057,848 6,057,848 Special Projects $11,065,925 $53,563 11.119.488 Total Designated 18 394 409 11 065 925 53 563 29 513 897 13. Prior Period Adjustments . Beginning fund balance in the General Fund and beginning retained earnings in the Water Enterprise Funds have been restated to reflect the effects of recording certain water and sewer billing receivables at June 30, 1990 which were not reflected in the June 30, 1990 financial statements. Beginning fund balance of the Contributions Special Revenue Fund has been decreased to correct an error in the recording of accrued revenues. Also, the Capital Improvement Fund has been . reclassified from a Special Revenue Fund to a Capital Projects Fund. The effects of the aforementioned restatements of fund balances /retained earnings were as summarized below: Special Capital ■ General Revenue Projects Enterprise Fund Funds Funds Funds . Fund balance /retained earnings, July 1, 1990, as previously reported $23,556,575 $12,547,696 $ 85,063 $24,340,400 Restatement 138,171 (254,624) 53.563 1.206,294 ■ Fund balance /retained earnings, July 1, 1990, as restated $23.694.746 $12,293 072 $138,626 $25 546 694 � 30 ■ ■ ■ CITY OF NEWPORT BEACH Notes to Combined Financial Statements (Continued) ■ June 30, 1991 ■ ■ In addition, the assets and related liabilities of the Agency Funds have been increased $560,775 as of July 1, 1990, from $9,669,253 previously reported to $10,230,028 to reflect the reporting of certain assets of the Deferred Compensation Agency Fund which were not reported previously. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 31 ■ 'GENERAL B. c. I CITY OF NEWPORT BEACH Comparative Balance Sheets - General Fund June 30, 1991 Assets Cash and investments Accounts receivable and accrued revenues Due from other governments Due from other funds Inventories of materials and supplies, at cost Total Assets Liabilities and Fund Balance Liabilities: Accounts and contracts payable Accrued payroll Deferred revenue Deposits Total Liabilities Fund Balance: Reserved: Reserved for encumbrances Reserved for inventories Unreserved: Designated for contingencies Designated for appropriations Total Fund Balance Total Liabilities and Fund Balance 33 1991 1990 $ 25,463,524 $ 27,996,270 3,105,007 2,891,504 728,586 1,520,966 302,504 299,407 $ 30,392,001 $ 31,915,767 $ 4,509,276 $ 4,208,198 1,178,751 1,127,344 728,586 2,436,428 2,156,893 8,124,455 8,221,021 3,570,633 3,351,643 302,504 299,407 12,336,561 11,908,382 6,057,848 8,135,314 22,267,546 23,694,746 $ 30,392,001 $ 31,915,767 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended June 30, 1991 Expenditures: General government 5,020,798 1991 (1,409,276) 1990 Public safety 25,613,659 26,911,630 Variable 26,729,452 Public works 16,750,495 17,247,313 Favorable 15,804,705 Capital expenditures Budget Actual (Unfavorable) Actual Revenues: Total Expenditures 65,703,325 59,547,804 Taxes $ 35,311,100 $ 34,640,298 $ (670,802) $ 32,894,815 Licenses, fees and permits 1,784,225 1,939,360 155,135 1,797,420 Intergovernmental revenue 3,217,785 3,522,530 304,745 5,231,155 Charges for services 4,915,675 3,635,112 (1,280,563) 3,905,063 Revenue from use of Operating transfers in 8,477,648 8,477,648 money and property 2,998,840 3,903,412 904,572 4,104,267 Other 1,828,480 1,670,700 (157,780) 1,490,488 Total Revenues 50,056,105 49,311,412 (744,693) 49,423,208 Expenditures: General government 5,020,798 6,430,074 (1,409,276) 4,515,813 Public safety 25,613,659 26,911,630 (1,297,971) 26,729,452 Public works 16,750,495 17,247,313 (496,818) 15,804,705 Capital expenditures 18,318,373 8,958,787 9,359,586 7,509,787 Total Expenditures 65,703,325 59,547,804 6,155,521 54,559,757 Excess of Revenues Over (Under) Expenditures (15,647,220) (10,236,392) 5,410,828 (5,136,549) Other Financing Sources (Uses): Operating transfers in 8,477,648 8,477,648 6,893,954 Operating transfers out (80,613) (80,613) (222,195) Proceeds from long -term debt 412,157 412,157 Total Other Financing Sources (Uses) 8,809,192 8,809,192 6,671,759 Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, July 1, as restated Fund Balance, June 30 (15,647,220) (1,427,200) 14,220,020 23,694,746 23,694,746 $ 8,047,526 $ 22,267,546 $ 14,220,020 34 1,535,210 22,159,536 $ 23,694,746 ■ ■ ■ ■ ■ r ■ ■ ■ ■ r ■ r ■ ■ ■ ■ ■ ■ r ■ ■ r r ■ r ■ ■ ■ ■ ■ ■ ■ SPECIAI �EVENLIE-VJNDS ■ ■ ■ C. J W J- ■ ■ ■ SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of ■ specific revenue sources which are legally restricted to expenditures for specified purposes. Newport Beach Special ■ Revenue Funds are as follows: The Park and Recreation Fund is used to account for the City's parks and recreation facilities. in addition to the ■ City Manager and Staff Departments, the City Council is assisted in the administration of this fund by the Parks, Beaches and Recreation Commission. ■ The Library Fund is used to account for the operations of the City's library system. The Library Board assists ■ the City Council in providing guidance and direction to the City Staff in the administration of this fund. ■ The State Gas Tax Fund accounts for all State Gas Tax related revenues and expenditures, including street repair, construction, and maintenance. State law requires that these funds be used exclusively for ■ maintenance of the street and highway system. The Arterial Highway Financing Fund is used to account for funds received from the Orange County ■ Transportation Commission for the construction and maintenance ofarterial highways. ■ The Federal Adopted Forfeiture Fund was established to account for all revenues resulting from the seizure of assets in conjunction with criminal cases (primarily drug trafficking.) It is the City's policy that all such ■ funds shall be used for enhancement of law enforcement programs. The Traffic Safety Fund is used to account for the receipt of all revenues from traffic related violations, ■ including both moving and parking citations. Income from this fund is transferred to the City's General Fund help ■ to offset the cost of traffic law enforcement. The Parking Meter Fund is used to account for all revenues received from Barking meters and City owned ■ parking lots. Income from this fund is either reserved for purchase of additional parking facilities or transferred to the General Fund to offset the cost of parking law enforcement and revenue collection. ■ The Tote and Submerged Land Fund is used to account for all revenues and expenditures related to the ■ operation of the City's tidelands, including beaches and marinas. The Contributions Fund is used to account for revenues received from other government agencies or private ■ developers and expended for specific street or highway construction projects. ■ The Building Excise Tax Fund is used to account for revenues received from builders or developers on building or remodeling projects within the City. Expenditures from this fund are used exclusively for public safety, ■ libraries, parks, beaches, or recreational activities. ■ The Community Development Block Grant Fund is used to account for revenues and expenditures relating to the City's Community Development Block Grant program. These funds are received from the Federal ■ Deparhnent of Housing and Urban Development and must be expended exclusively on programs for low or moderate income individuals /families. ■ ■ ■ ■ A. 7be FFun Zone: from crowds such as tbesc came the youtbful defendants in Judge Gardner's court" C. K. Priest, former clerk, Newpon Beach Police Department. ■ B. Cretan racing on M?wport Baypast yachts at anchor-. ■ C. Newport Beach City Hall, Finance Depatment 1949. The Finance Department still occupies Ibis office space in City Hall. ■ ■ CITY OF NEWPORT BEACH Combining Balance Sheet All Special Revenue Funds June 30, 1991 Assets Cash and investments Accounts receivable and accrued revenues Due from other governments Due from other funds Total Assets Liabilities and Fund Balances Liabilities: Accounts and contracts payable Accrued payroll Due to other funds Deferred revenue Deposits Total Liabilities Fund Balances: Reserved for encumbrances Unreserved: Designated for special projects Undesignated Total Fund Balances Total Liabilities and Fund Balances 36 Park and Recreation Library $ 2,005,958 $ 161,809 23,971 514 State Gas Tax $ 1,798,063 21,666 $ 2,029,929 $ 162,323 $ 1,819,729 $ 132,877 $ 49,415 $ 20,676 92,361 64,444 10,000 203,227 428,465 123,859 20,676 29,495 16,535 485,902 1,571,969 21,929 1,313,151 1,601,464 38,464 1,799,053 $ 2,029,929 $ 162,323 $ 1,819,729 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Arterial Federal Tide and Highway Adopted Traffic Parking Submerged Financing Forfeiture Safety Meter Land $ 476,238 $ 845,789 $ 124,681 86,166 $ 187,245 46,435 $ 319,638 582,162 $ 124,681 $ 562,404 $187,245 $ 1,474,386 $ 319,638 $ 77,701 $ 17,961 $ 20,214 $ 14,279 1,889 277,716 167,031 104,877 136,436 355,417 17,961 187,245 257,481 62,157 544,443 $ 1,474,386 (230,736) (230,736) 544,443 1,474,386 62,157 $ 124,681 $ 562,404 $ 187,245 $ 1,474,386 $ 319,638 (Continued) 37 CITY OF NEWPORT BEACH Combining Balance Sheet All Special Revenue Funds (Continued) June 30, 1991 Assets Cash and investments Accounts receivable and accrued revenue Due from other governments Due from other funds Total Assets Liabilities and Fund Balances Liabilities: Accounts and contracts payable Accrued payroll Due to other funds Deferred revenue Deposits Total Liabilities Fund Balances: Reserved for encumbrances Unreserved: Designated for special projects Undesigriated Total Fund Balances Total Liabilities and Fund Balances 38 Building Excise Contributions Tax $ 6,370,825 $ 469,410 1,389,357 Community Development Block Grant $ 38,000 $ 7,760,182 $ 469,410 $ 38,000 $ 366,353 $ 17,114 $ 1,000 7,240 37,460 540 93,672 467,265 17,114 39,000 1,152,870 452,296 6,140,047 (1,000) 7,292,917 452,296 (1,000) $ 7,760,182 $ 469,410 $ 38,000 IF Totals 1991 1990 $ 12,128,092 $ 12,862,653 848,316 326,110 1,389,357 2,314,352 582,162 582,162 $ 14,947,927 $ 16,085,277 $ 717,590 165,934 587,084 10,540 433,335 1,914,483 2,199,255 11,065,925 (231,736) V2 n22 AAA $ 1,406,645 148,403 36,808 2,200,349 3,792,205 5,055,955 7,237,117 i 0 00'2 n70 $ 14,947,927 $ 16,085,277 39 CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds For the Year Ended June 30, 1991 Revenues: Taxes Licenses, fees and permits Intergovernmental revenue Charges for services Fines, forfeitures and penalties Revenue from use of money and property Other Total Revenues Expenditures: Current General government Community development Libraries Parks, beaches and recreation Capital expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances, July 1, as restated Fund Balances, June 30 40 Park and State Recreation Library Gas Tax $ 3,160,200 $ 2,474,365 43,084 113,742 364,995 $ 1,076,830 1,029,202 124,718 609,227 160,524 882,781 64,179 5,838,236 3,028,257 1,237,354 3,061,009 4,222,291 666,739 53,233 1,865,019 4,889,030 3,114,242 1,865,019 949,206 (85,985) (627,665) 54,538 (481,229) (481,229) 54,538 467,977 1,133,487 $ 1,601,464 (31,447) (627,665) 90011 0 A09 710 $ 38,464 $ 1,799,053 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Arterial Federal Highway Adopted Traffic Financing Forfeiture Safety $ 124,682 Parking Meter Tide and Submerged Land $ 825,735 191,918 $ 506,388 $ 2,608,595 28,408 90,104 $ 1,047,526 3,901,269 124,682 534,796 2,698,699 1,047,526 4,918,922 107,214 763,982 421,503 127,172 295,256 421,503 234,386 1,059,238 (296,821) 300,410 2,698,699 1,047,526 3,859,684 (81,000) (2,698,699) (765,819) (3,886,628) (81,000) (2,698,699) (765,819) (3,886,628) (296,821) 219,410 66,085 325,033 $ (230,736) $ 544,443 $ - 281,707 (26,944) 1,192,679 89,101 $ 1,474,386 $ 62,157 (Continued) 41 CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds (Continued) June 30, 1991 Revenues: Taxes Licenses, fees and permits Intergovernmental revenue Charges for services Fines, forfeitures and penalties Revenue from use of money and property Other Total Revenues Expenditures: Current General government Community development Libraries Parks, beaches and recreation Capital expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances, July 1, as restated Fund Balances, June 30 Building Community Excise Development Contributions Tax Block Grant $ 204,372 $ 5,451,980 $ 182,327 225,016 33,930 471,224 6,148,220 238,302 182,327 183,327 5,322,512 227,204 5,322,512 227,204 183,327 825,708 11,098 (1,000) (81,651) (81,651) 744,057 6,548,860 $ 7,292,917 42 11,098 (1,000) 441,198 $ 452,296 $ (1,000) Totals �ee� .onn $ 5,838,937 $ 5,494,974 868,819 856,310 7,506,474 11,105,328 1,153,920 1,011,892 3,114,983 3,376,570 6,096,004 5,661,739 1,418,184 950,600 25, 997, 321 28,457,413 871,196 849,446 183,327 185,924 3,061,009 2,819,616 4,222,291 3,790,101 8,978,638 14,786,808 17,316,461 22,431,895 8,680,860 6,025,518 54,538 924,827 (7,995,026) (7,138,584) (7,940,488) (6,213,757) 740,372 (188,239) 12,293,072 12,481,311 $ 13,033,444 $ 12,293,072 43 ■ CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance ■ Budget and Actual ■ Park and Recreation Special Revenue Fund For the Year Ended June 30, 1991 ■ ■ 1991 1990 Variance ■ Favorable ■ Budget Actual (Unfavorable) Actual Revenues: ■ Taxes $ 3,160,200 $ 3,160,200 $ 2,930,180 Licenses, fees and permits 44,000 43,084 $ (916) 57,174 ■ Intergovernmental revenue 192,910 113,742 (79,168) 181,860 Charges for services 873,425 1,029,202 155,777 906,747 ■ Revenue from use of money and property 629,670 609,227 (20,443) 577,678 ■ Other 235,000 882,781 647,781 469,346 ■ Total Revenues 5,135,205 5,838,236 703,031 5,122,985 ■ Expenditures: ■ Current Parks, beaches and recreation 3,893,920 4,222,291 (328,371) 3,790,101 ■ Capital expenditures 1,979,690 666,739 1,312,951 1,501,736 ■ Total Expenditures 5,873,610 4,889,030 984,580 5,291,837 ■ Excess of Revenues Over ■ (Under) Expenditures (738,405) 949,206 1,687,611 (168,852) ■ Other Financing Sources (Uses): Operating transfers in 582,538 ■ Operating transfers out (481,229) (481,229) ■ Total Other Financing ■ Sources (Uses) (481,229) (481,229) 582,538 ■ Excess of Revenues and Other Financing Sources ■ Over (Under) Expenditures and Other Financing Uses (738,405) 467,977 1,206,382 413,686 ■ ■ Fund Balance, July 1 1,133,487 1,133,487 719,801 ■ Fund Balance, June 30 $ 395,082 $ 1,601,464 $ 1,206,382 $ 1,133,487 ■ ■ 44 ■ M CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Library Special Revenue Fund For the Year Ended June 30, 1991 Revenues: Taxes Intergovernmental revenue Charges for services Revenue from use of money and property Other Total Revenues Expenditures: Current Libraries Capital expenditures Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources: Operating transfers in Excess of Revenues and Other Financing Sources Over (Under) Expenditures 3,155,138 1991 94,129 1990 53,031 53,233 Variance 45,255 38,464 $ 218,941 $ 69,911 Favorable Budget Actual (Unfavorable) Actual $ 2,474,365 $ 2,474,365 $ 2,322,633 317,265 364,995 $ 47,730 283,544 92,140 124,718 32,578 105,145 14,000 (14,000) 60,011 64,179 4,168 61,666 2,957,781 3,028,257 70,476 2,772,988 3,155,138 3,061,009 94,129 2,819,616 53,031 53,233 (202) 45,255 38,464 $ 218,941 $ 69,911 3,208,169 3,114,242 93,927 2,864,871 (250,388) (85,985) 164,403 (91,883) 54,538 54,538 120,094 (250,388) (31,447) 218,941 28,211 Fund Balance, July 1 69,911 69,911 41,700 Fund Balance, June 30 $ (180,477) $ 38,464 $ 218,941 $ 69,911 45 r CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual State Gas Tax Special Revenue Fund For the Year Ended June 30, 1991 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 1,073,700 $ 1,076,830 $ 3,130 $ 965,742 Revenue from use of money and property 150,000 160,524 10,524 204,911 Total Revenues 1,223,700 1,237,354 13,654 1,170,653 Expenditures: Capital expenditures 3,904,321 1,865,019 2,039,302 1,545,119 Excess of Revenues (Under) Expenditures (2,680,621) (627,665) 2,052,956 (374,466) Fund Balance, July 1 2,426,718 2,426,718 2,801,184 Fund Balance, June 30 $ (253,903) $ 1,799,053 $ 2,052,956 $ 2,426,718 46 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Arterial Highway Financing Special Revenue Fund For the Year Ended June 30, 1991 47 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue $ 700,000 $ 124,682 $ 575,318 Expenditures: Capital expenditures 700,000 421,503 278,497 Excess of Revenues (Under) Expenditures (296,821) (296,821) Fund Balance, July 1 66,085 66,085 $ 66,085 Fund Balance June 30 $ 66,085 $ (230,736) 1(296,821) $ 66,085 47 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Chagnes in Fund Balance Budget and Actual Federal Adopted Forfeiture Special Revenue Fund For the Year Ended June 30, 1991 Revenues: Fines, forfeitures and penalties Revenue from use of money and property Total Revenues Expenditures: Current General government Capital expenditures Total Expenditures Excess of Revenues Over Expenditures Other Financing Uses: Operating transfers out Budget 1991 1990 Variance Favorable Actual (Unfavorable) Actual $ 513,000 $ 506,388 $ (6,612) 25,000 28,408 3,408 538,000 534,796 (3,204) $ 658,469 31,749 690,218 20,000 107,214 (87,214) 11,940 127,172 (127,172) 668,671 20,000 234,386 (214,386) 680,611 518,000 300,410 (217,590) 9,607 (81,000) (81,000) Excess of Revenues Over (Under) Expenditures and Other Financing Uses 518,000 219,410 (298,590) 9,607 Fund Balance, July 1 325,033 325,033 315,426 Fund Balance, June 30 $ 843,033 $ 544,443 $ (298,590) $ 325,033 M ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Traffic Safety Special Revenue Fund For the Year Ended June 30, 1991 Excess of Revenues Over(Under)Other Financing Uses 3,169,000 (3,169,000) Fund Balance, July 1 Fund Balance, June 30 $ 3,169,000 $ - $ (3,169,000) $ - 49 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Fines, forfeitures and penalties $ 3,059,000 $ 2,608,595 $ (450,405) $ 2,718,101 Revenue from use of money and property 110,000 90,104 (19,896) 109,541 Total Revenues 3,169,000 2,698,699 (470,301) 2,827,642 Other Financing (Uses): Operating transfers out (2,698,699) 2,698,699 (2,827,642) Excess of Revenues Over(Under)Other Financing Uses 3,169,000 (3,169,000) Fund Balance, July 1 Fund Balance, June 30 $ 3,169,000 $ - $ (3,169,000) $ - 49 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Parking Meter Special Revenue Fund For the Year Ended June 30, 1991 Revenues: Revenue from use of money and property Other Financing Sources (Uses): Operating transfers in Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources Over (Under) Other Financing Uses Fund Balance, July 1 Fund Balance, June 30 1991 Budget Actual $ 1,067,650 $ 1,047,526 R.T.T.1 Variance Favorable (Unfavorable) Actual $ (20,124) $ 1,061,074 222,195 (765,819) (765,819) (1,643,236) (765,819) (765,819) (1,421,041) 1,067,650 281,707 (785,943) (359,967) 1,192,679 1,192,679 1,552,646 $ 2,260,329 $ 1,474,386 $ (785,943) $ 1,192,679 rR CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Tide and Submerged Land Special Revenue Fund For the Year Ended June 30, 1991 Revenues: Licenses, fees and permits Intergovernmental revenue Revenue from use of money and property Total Revenues Expenditures: Current General government Capital expenditures Total Expenditures Excess of Revenues Over Expenditures Other Financing Uses: Operating transfers out Budget $ 830,000 148,000 1991 Actual $ 825,735 191,918 3,489,610 3,901,269 1990 Variance Favorable (Unfavorable) Actual $ (4,265) $ 799,136 43,918 168,896 411,659 3,174,262 451,312 4,142,294 748,900 763,982 (15,082) 837,506 429,101 295,256 133,845 601,176 1,178,001 1,059,238 118,763 1,438,682 3,289,609 3,859,684 570,075 2,703,612 (3,886,628) (3,886,628) (2,643,041) Excess of Revenues Over (Under) Expenditures and Other Financing Uses 3,289,609 (26,944) (3,316,553) 60,571 Fund Balance, July 1 89,101 89,101 28,530 Fund Balance, June 30 $ 3,378,710 $ 62,157 $ (3,316,553) $ 89,101 51 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Contributions Special Revenue Fund For the Year Ended June 30, 1991 Revenues: Intergovernmental revenue Revenue from use of money and property Private contributions Total Revenues Expenditures: Capital Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Uses: Operating Transfers Out Excess of Revenues Over (Under) Expenditures and Other Financing Uses .. (4,276,312) (4,276,312) 5,322,512 7,154,795 10,113,308 825,708 5,102,020 (81,651) (81,651) 744,057 5,020,369 80,774 80,774 Fund Balance, July 1, as restated 1991 6,548,860 1990 Fund Balance, June 30 $ 2,272,548 Variance $ 5,020,369 $ 6,548,860 Favorable Budget Actual (Unfavorable) Actual $ 7,300,995 $ 5,451,980 $ (1,849,015) $ 9,304,297 225,016 225,016 470,197 900,000 471,224 (428,776) 419,588 8,200,995 6,148,220 (2,052,775) 10,194,082 .. (4,276,312) (4,276,312) 5,322,512 7,154,795 10,113,308 825,708 5,102,020 (81,651) (81,651) 744,057 5,020,369 80,774 80,774 Fund Balance, July 1, as restated 6,548,860 6,548,860 6,468,086 Fund Balance, June 30 $ 2,272,548 $ 7,292,917 $ 5,020,369 $ 6,548,860 52 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Building Excise Tax Special Revenue Fund For the Year Ended June 30, 1991 53 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Taxes $ 375,000 $ 204,372 $ (170,628) $ 242,161 Revenue from use of money and property 37,500 33,930 (3,570) 32,327 Total Revenues 412,500 238,302 (174,198) 274,488 Expenditures: Capital Expenditures 351,653 227,204 124,449 297,466 Excess of Revenues Over (Under) Expenditures 60,847 11,098 (49,749) (22,978) Fund Balance, July 1 441,198 441,198 464,176 Fund Balance, June 30 $ 502,045 $ 452,296 $ (49,749) $ 441,198 53 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes In Fund Balance Budget and Actual Community Development Block Grant Special Revenue Fund For the Year Ended June 30, 1991 Community Development Block Grant Revenues: Intergovernmental revenue Expenditures: Current Community development Excess of Revenues Over (Under) Expenditures Other Financing Uses: Operating transfers out Excess of Revenues Over (Under) Expenditures and Other Financing Uses Fund Balance, July 1 Fund Balance, June 30 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual $454,198 $182,327 $ (271,871) $200,989 458,198 183,327 (4,000) (1,000) 274,871 185,924 3,000 15,065 (24,665) (4,000) (1,000) 3,000 (9,600) 9,600 $ (4,000) $ (1,000) $ 3,000 $ — 54 r -�W Pi" l MO M M 04� TV All _,Iwo 7'1 CAPITAL PROJECTS FUNDS Capital Projects Funds are established to account for resources used for the acquisition and construction of capital facilities by the City, except those financed by Enterprise Funds. City of Newport Beach Capital Project funds are as follows: The Capital Improvement Fund is used to account for the receipt and expenditure of City funds specifically identified for capital improvement projects. The Assessment District Fund is used to account for the receipt and expenditure of funds received from Special Assessment Districts for capital improvement projects. A. Newport Boulevard and Via Lido, the Lido Isle bridge (top), and the Yacht Pioneer mooredoJfshore, October 12, 1953 B. Looking inland from over Lido Isle, December 17, 1947. Tlie large yachts picnovd each ranning well over 100feel in length, are (left to right): janidore, Goodwill (inside), Enchantress (outside), Gloria Dalton, Vega, Pioneer, and Ramona. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Combining Balance Sheet All Capital Projects Funds June 30, 1991 Capital Assessment Totals Improvement District 1991 1990 Assets Cash and investments $ 53,563 $ — $ 53,563 $223,929 Liabilities and Fund Balance Liabilities: Accounts and contracts payable $ 165 $ 165 Due to other funds 898,547 898,547 Deposits 85,303 85,303 $ 85,303 Total Liabilities 984,015 984,015 85,303 Fund Balance: Unreserved: Designated for special projects $ 53,563 53,563 138,626 Unreserved, undesignated (984,015) (984,015) Total Fund Balance 53,563 (984,015) (930,452) 138,626 Total Liabilities and Fund Balance $ 53,563 $ — $ 53,563 $ 223,929 55 CITY OF NEWPORT BEACH . Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Capital Projects Funds For the Year Ended June 30, 1991 Capital Assessment Totals ■ Improvement District 1991 1990 Revenues: ■ Contributions from property owners $ 466,815 $ 466,815 $ 1,399,611 Expenditures: Capital expenditures 1,561,968 1,561,968 1,314,548 Excess of Revenues Over . (Under) Expenditures (1,095,153) (1,095,153) 85,063 Other Financing Sources: Operating transfers in 26,075 26,075 Excess of Revenues and ■ Other Financing Sources Over (1,069,078) (1,069,078) 85,063 Fund Balances, July 1, as restated $ 53,563 85,063 138,626 53,563 Fund Balances, June 30 $ 53,563 $ (984,015) $ (930,452) $ 138,626 56 ■ ■ ENTFMRISE-PUP6S' A. ■ B. ENTERPRISE FUNDS Enterprise Funds are used to account for City operations that are financed and operated in a manner similar to private business enterprises. The objective of segregating activities of this type is to identify the costs of providing the services, and to finance them through user charges. City of Newport Beach Enterprise Funds during fiscal year 1990 -91 are those listed below: The Cannery Village Parking Fund is used to account for the revenues and expenses of operating the Cannery Village parking facility. The Water Fund is used to account for the activities associated with the transmission and distribution of potable water by the City to its users. The Marinapark Fund is used to account for the activity of the City -owned Marinapark mobile home facility A. The City's Building, Plumbing, and Electrical Departments, in back of old Ciry Hall, late 30's or early 40's. B. John Palen andJesse "Pee Wee" Brewer, Newport Beach Utilities Department, repairing a waterline in.1949. C. Dorothy Palen (Finance Office) and Barbara MacDonald (City Clerk's Office) outside City Hall, 19/19. Dorothy Palen is still with the City. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Combining Balance Sheet All Enterprise Funds . June 30, 1991 Cannery Village Assets Parking Water • Current Assets: Cash and investments $ 3,375 $ 12,547,795 Accounts receivable and accrued revenues 1,641,029 Due from other governments Inventory of materials and supplies, at cost 52,628 ■ Total Current Assets 3,375 14,241,452 Fixed Assets: Land 1,039,163 2,016,450 Structures 107,471 26,327,518 Equipment 985,956 Accumulated depreciation (11,701) (11,113,623) ■ Net Fixed Assets 1,134, 933 18,216,301 Total Assets $ 1,138,308 $ 32,457,753 Liabilities and Fund Eouitv • Current Liabilities: Accounts and contracts payable $ 34,841 $ 624,215 Accrued payroll 258,477 Due to other funds 582,162 Deferred revenue 7 Deposits 148,853 Current portion of long —term liabilities 150,000 7,289 ■ Total Current Liabilities 767,003 1,038,841 Long Term Liabilities: Certificates of participation 245,000 Total Liabilites 1,012,003 1,038,841 Fund Equity: Contributed capital 4,290,444 Retained Earnings Unreserved 126,305 27,128,468 . Total Fund Equity 126,305 31,418,912 ■ Total Liabilities and Fund Equity $ 1,138,308 $ 32,457,753 ■ 58 ■ Totals Marinapark 1991 1990 59 $ 12,551,170 $ 11,461,572 $ 37,734 1,678,763 1,377,861 35,335 617,497 12,697 52,628 66,650 37,734 14, 282,561 12,918,780 1,000 3,056,613 3,056,613 351,641 26,786,630 25,535,537 19,745 1,005,701 922,870 (229,311) (11,354,635) (10,787,526) 143,075 19,494, 309 18, 727,494 $ 180,809 $ 33,776,870 $ 31,646,274 59 $ 659,056 $ 888,380 $ 2,399 260,876 207,119 35,335 617,497 582,162 7 12,697 148,853 131,278 157,289 146,870 37,734 1,843,578 1,968,506 245,000 402,130 37,734 2,088,578 2,370,636 15,000 4,305,444 3,728,944 128,075 27,382,848 25,546,694 143,075 31,688,292 29,275,638 $ 180,809 $ 33,776,870 $ 31,646,274 59 CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenses and Changes in Retained Earnings All Enterprise Funds For the Year Ended June 30, 1991 Operating Revenues: Charges for services Other Total Operating Revenue Operating Expenses: Purchase of water Salaries and wages Depreciation Professional services Maintenance and supplies Systems maintenance Other Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Intergovernmental revenue Interest income Other income Interest expense Total Nonoperating Revenues (Expenses) Income Before Operating Transfers Operating transers out Net Income (Loss) Retained Earnings, July 1, as restated Cannery Village Parking Water Marinapark $ 84,512 $ 9,327,524 $ 543,218 62,380 18,119 84,512 9,389,904 561,337 4,576,746 1,684,966 6,129 4,299 551,210 11,600 613,440 53,560 275,477 1,029 686,526 179,289 19,604 4,299 8,567,654 91,922 80,213 822,250 469,415 12,690 19,587 884,235 67,075 (36,285) (404) (16,698) 963,596 63,515 1,785,846 469,415 (482,622) 63,515 1,785,846 (13,207) 62,790 25,342,622 141,282 Retained Earnings, June 30 $ 126,305 $ 27,128,468 $ 128,075 M ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Totals 1991 1990 $ 9,955,254 $ 9,054,486 80,499 99,537 10,035,753 9,154,023 4,576,746 1,691,095 567,109 667,000 276,506 686,526 198,893 4,757,790 1,526,502 536,563 616,636 282,865 562,367 175,517 c ccq 07c a nco oAA 1,371,878 695,783 12,690 65,476 903,822 881,809 67,075 84,389 (36,689) (51,496) 946,898 980,178 2,318,776 1,675,961 (482,622) (458,002) 1,836,154 1,217,959 25,546,694 24,328,735 $ 27,382,848 $ 25,546,694 61 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Enterprise Funds For the Year Ended June 30, 1991 Cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Changes in operating assets and liabilities: (Increase) decrease in accounts receivable Decrease in due from other governments Decrease in inventories of materials and supplies at cost Increase (decrease) in accounts payable Increase (decrease) in accrued payroll Increase in deposits Decrease in deferred revenue Total Adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Intergovernmental revenues Other non- operating revenues Operating transfers to other funds Net cash provided by (used for) noncapital financing activities Cash flows from capital and related financing activities: Proceeds from the sale of equipment Acquisition of capital assets Principal paid on note payable Interest paid on note payable Principal paid on certificates of participation Interest paid on certificate of participation Net cash used for capital and related financing activities Cash flows from investing activities: Interest on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 C Cannery Village Parking Water $ 80,213 $ 822,250 4,299 551,210 (296,961) 12,697 14,022 (228,743) 54,338 17,575 (12,690) 4,299 111,448 84,512 933,698 12,690 67,075 79,765 (757,424) (6,711) (404) (140,000) (36,285) (176,285) (764,539) 19,587 884,235 (72,186) 1,133,159 75,561 11,414,636 $ 3,375 $ 12,547,795 Totals Marinapark 1991 1990 $ 469,415 $ 1,371,878 $ 695,783 11,600 567,109 536,563 (3,941) (300,902) 39,446 (404) 12,697 55,387 (135,000) 14,022 (50,829) 34,754 (193,989) (95,503) (581) 53,757 48,386 17,575 6,572 (12,690) 41,832 157,579 590,851 511,247 1,529,457 1,286,634 12,690 65,476 67,075 86,408 (482,622) (482,622) (458,002) (482,622) (402,857) (306,118) (940,824) (2,163,697) 903,822 881,809 28,625 1,089,598 (301,372) (28,625) 11,461,572 11,762,944 $ - $ 12,551,170 $ 11,461,572 63 4,429 (757,424) (1,974,758) (6,711) (6,872) (404) (667) (140,000) (135,000) (36,285) (50,829) (940,824) (2,163,697) 903,822 881,809 28,625 1,089,598 (301,372) (28,625) 11,461,572 11,762,944 $ - $ 12,551,170 $ 11,461,572 63 FIDUCIARY FUND TYPES A. FIDUCIARY FUND TYPES Fiduciary Funds are comprised of Trust and Agency Funds. They are used to account for assets held by the City in a trustee capacity, or as an agent for other government entities, private organizations, or individuals. Newport Beach Trust and Agency Funds are listed below: The Deferred Compensation Fund is used to track the assets of City's deferred compensation plan for its employees. The Special Assessment Fund is used to account for funds received from affected property owners and payable to holders of 1911 and 1915 Act bonds. A. Second Annual Newport Harbor Fish Fry at the Newport Pier, May 18, 1941. The old City Hall (formerly a school) is in the upper right. B. Tournament of Lights Float, 1934, showing the bathing suit styles of `Past, Present, Future". Future, on the right, is Ann Anich. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ . CITY OF NEWPORT BEACH Combining Balance Sheet All Agency Funds June 30, 1991 Deferred Special . Compensation Assessment Totals Fund Fund 1991 1990 Assets: Cash and investments $ 11,352,433 $ 23,017 $ 11,375,450 $ 9,669,253 Other assets 560,775 560,775 560,775 . ■ Total Assets $ 11,913,208 $ 23,017 $ 11,936,225 $ 10,230,028 Liabilities: Deferred employee compensation $ 11,913,208 $ 11,913,208 $ 10,214,382 Due to bondholders $ 23,017 23,017 15,646 Total Liabilities $ 11,913,208 $ 23,017 $ 11,936,225 $ 10,230,028 65 CITY OF NEWPORT BEACH Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1991 Balance July 1, 1990 Additions Deferred Compensation: Deductions Balance June 30, 1991 Assets Cash and investments $ 9,653,607 $ 2,937,740 $ (1,238,914) $ 11,352,433 Other assets 560,775 560,775 Total Assets $ 10,214,382 $ 2,937,740 $ (1,238,914) $ 11,913,208 Liabilities Deferred employee compensation $ 10,214,382 $ 2,937,740 $ (1,238,914) $ 11,913,208 Special Assessments: Assets Cash and investments $ 15,646 $ 163,468 $ (156,097) $ 23,017 Liabilities Due to bondholders $ 15,646 $ 163,468 $ (156,097) $ 23,017 Totals -All Agency Funds: Assets Cash and investments $ 9,669,253 $ 3,101,208 $ (1,395,011) $ 11,375,450 Other assets 560,775 560,775 Total Assets $ 10,230,028 $ 3,101,208 $ (1,395,011) $ 11,936,225 Liabilities Deferred employee compensation $ 10,214,382 $ 2,937,740 $ (1,238,914) $ 11,913,208 Due to bondholders 15,646 163,468 (156,097) 23,017 Total Liabilities $ 10,230,028 $ 3,101,208 $ (1,395,011) $ 11,936,225 M ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ C. I --ACCOUNT UoLm B. CITY OF NEWPORT BEACH Comparative Schedule of General Fixed Assets By Source June 30, 1991 Total General Fixed Assets Investment in General Fixed Assets Total Investment in Fixed Assets " $ 67,075,260 $ 61,841,423 $ 67,075,260 $ 61,841,423 ' Sources are not readily available. The City plans to develop this information for presentation in its Comprehensive Annual Financial Report for the year ending June 30, 1992. 67 1991 1990 General Fixed Assets Automotive $ 12,134,682 $ 11,358,777 Land 15,225,373 15,225,373 Structures 31,839,077 28,941,983 Equipment 7,876,128 6,315,290 Total General Fixed Assets Investment in General Fixed Assets Total Investment in Fixed Assets " $ 67,075,260 $ 61,841,423 $ 67,075,260 $ 61,841,423 ' Sources are not readily available. The City plans to develop this information for presentation in its Comprehensive Annual Financial Report for the year ending June 30, 1992. 67 CITY OF NEWPORT BEACH General Long -Term Debt Account Group Comparative Schedule of General Long -Term Debt June 30, 1991 Amount to be Provided for the Payment of General Long -Term Debt Amount to be provided for the payment of general long -term debt General Long -Term Debt Payable Claims and judgments payable Compensated absences Capitalized leases Note payable Loan payable M7 1991 1990 $ 12,104,977 $ 11,592,861 $ 12,104,977 $ 11,592,861 $ 3,511,363 $ 3,478,254 4,264,453 3,791,762 958,456 820,427 3,333,477 3,398,185 37,228 104,233 $ 12,104,977 $ 11,592,861. M' 45ry: .. y -° .. .... vx�'`' ~'�`ti4 �,�. kb. �i. :,• .. ......�. "� � :7z .__ .., !_' .Pam ,�:..., .r CITY OF NEWPORT BEACH Miscellaneous Statistics June 30, 1991 General Information: Dateof Incorporation ................................. ............................... ...........................1906 Form of Government .............. ............................... ......................:Council - Manager Population: Permanent............................................................................ ............................... 66,643 Summer...................................................... ............................... ........................100,000 Tourist ........................ ............................... .........................20,000 to 100,000 per day Area: Square Miles Acres Land 13.87 8,876.8 Bay 1.90 1,216.0 Ocean 20.00 12,864.0 Total 35.77 22,956.8 Population Density 5,156.6 :t WaterFrontage: .................................................................................................. Miles Ocean.......................................................................................... ......................:........ 6.1 Harbor........................................................... ............................... ...........................25.4 TotalWater Frontage ................................. ............................... ...........................31.5 Newport Harbor: Boats....... ................................. .............................................................................. 9,000 Residential................................................... ............................... ..........................1,230 Commercial Slips and Side Ties ............... ............................... ..........................2,119 BayMoorings .............................................. ............................... ..........................1,221 Public Safety Police Fire Number of Stations 1 6 Number of Personnel 223 113 71 General Govermental Revenues By Source (1) (Last Ten Fiscal Years) Fiscal Year Taxes Licences, Fees and Permits Inter- Governmental Revenue Charges for Services Fines, Forfeitures & Penalties Revenue from Use of Money and Property Other Total 1981 -82 $17,965,061 $2,648,718 $3,571,952 $1,970,959 $1,800,404 $6,487,581 $1,083,464 $35,528,139 1982 -83 18,605,175 1,652,795 5,454,380 2,042,455 1,974,112 6,422,154 1,147,477 37,298,548 1983 -84 22,114,665 2,181,509 2,665,866 2,332,042 2,409,329 6,452,149 1,904,167 40,059,727 1984 -85 25,585,877 2,031,715 4,303,410 2,733,503 2,541,878 6,382,834 2,349,901 45,929,118 1985 -86 28,685,016 2,185,936 10,915,059 3,700,630 3,039,221 6,661,032 2,631,416 57,818,310 1986 -87 31,663,304 2,387,411 7,132,740 3,963,061 2,372,335 6,907,803 5,298,061 59,724,715 1987-88 34,076,119 2,294,447 8,157,975 4,266,091 2,881,443 7,528,267 5,053,836 64,258,178 1988-89 37,245,279 2,517,205 6,858,019 4,821,564 2,964,864 8,391,781 3,649,089 66,447,801 1989 -90 38,389,789 2,653,730 16,336,483 4,916,955 3,376,570 9,766,006 3,840,699 79,280,232 1990 -91 40,479,235 2,808,179 11,029,004 4,789,032 3,114,983 9,999,416 3,555,699 75,775,548 (1) Includes General, Special Revenue, and Capital Projects Funds General Governmental Expenditures By Function (1) (Last Ten Fiscal Years) Source: City Finance Department 72 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Parks, Fiscal General Public Public Community Beaches, & Capital Year Government Safety Works Development libraries Recreation Expenditures Total 1981 -82 $3,575,449 $15,692,810 $5,192,229 $1,255,690 $1,963,204 $6,641,819 $34,321,101 198283 3,445,385 16,994,256 6,037,934 1,395,858 2,235,131 8,410,064 38,518,628 1983 -84 3,737,387 18,809,480 6,883,212 1,502,294 2,448,264 8,003,393 417384,030 1984 -85 4,179,894 21,185,295 7,171,611 1,691,931 2,812,467 10,249,933 47,291,131, 1985 -86 47736,475 21,337,158 7,468,089 2,127,784(2) 1,772,640 2,622,088 11,971,392 52,035,626 1986 -87 5,188,407 20,371,613 13,668,069 447,248 1,976,881 3,049,442 12,522,935 57,224,595 1987 -88 4,878,412 21,845,493 13,043,460 450,234 2,156,249 3,078,055 16,657,535 62,109,438 1988 -89 5,248,695 22,014,671 13,870,397 1,603,571 2,597,300 3,399,035 11,175,926 59,909,595 1989 -90 5,365,259 26,729,452 15,804,705 185,924 2,819,616 3,790,101 23,611,143 78,306,200 1990 -91 7,301,270 26,911,630 17,247,313 183,327 3,061,009 4,222,291 19,499,393 78,426,233 (1) Includes General, Special Revenue, and Capital Projects Funds (2) No Community Development Block Grant funds were received by the City prior to fiscal year 1985 -86. Source: City Finance Department 72 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ $80 $70 y a $60 0 C� $50 $40 a $30 520 s10 $0 General Governmental Expenditures / Revenues (last Ten Fiscal Years) 1981 -82 1982 -83 1983 -84 1984 -85 1985 -86 1986 -87 1987 -88 1988 -89 1989 -90 1990 -91 General Governmental Revenues By Source Fiscal Year 1990 -91 General Governmental Expenditures By Function Fiscal Year 1990 -91 Expenditures nues 0 Taxes Licenses, Fees & Permits Inter Govermental Revenue M . Charges for Sevices Fines, Forfeits & Penalties Revenue from use of Money & Property ® Other General Government �. Public Safety Public Works Community Development ® Libraries Parks, Beaches & Recreation Capital Expenditures Assessed & Estimated Value of Taxable Property (Last Ten Fiscal Years) Fiscal Year Secured Valuation Public Utility Unsecured Valuation Total Assessed Valuation 1981 -1982 $4,115,108,534 $52,977,030 $440,875,830 $4,608,961,394 1982 -1983 4,704,345,159 58,414,910 540,597,900 5,303,357,969 1983 -1984 5,165,387,560 67,215,880 540,974,823 5,773,578,263 1984 -1985 6,095,601,115 68,160,450 594,036,653 6,757,798,218 1985 -1986 6,600,799,830 72,892,420 691,688,711 7,365,380,961 1986 -1987 7,090,960,057 78,565,100 649,193,026 7,818,718,183 1987 -1988 7,710,141,525 80,391,430 839,685,023 8,630,217,978 1988 -1989 8,357,952,682 575,220 (1) 688,645,933 9,047,173,835 1989 -1990 8,992,749,635 575,220 (1) 771,046,663 9,764,371,518 1990 -1991 10,013,611,946 575,220 (1) 894,916,739 10,909,093,905 (1) Effective FY 1988 -89, public utility values have decreased due to AB2890 &AB454tanferring the public utility values to county—wide tax rate area. 364,658 12,553,752 96.73% Secured Property Tax Levies & Collections (Last Ten Fiscal Years) Source: County of Orange Auditor Controller's Office 74 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ % of Total Tax Fiscal Total Current Total Current % of Delinquent Tax Total Collections Year Levy Collections Levy Collected Collections Collections To Total Levy 1981 -1982 8,249,330 7,742,923 93.86% 181,278 7,924,201 96.06% 1982 -1983 9,466,008 9,181,218 96.99% 265,800 9,447,018 99.80% 1983 -1984 9,744,840 9,586,308 98.37% 409,694 9,996,002 102.58% 1984 -1985 11,544,979 10,815,544 93.68% 392,904 11,208,448 97.09% 1985 -1986 12,978,040 12,189,094 93.92% 364,658 12,553,752 96.73% 1986 -1987 14,395,151 13,783,508 95.75% 465,780 14,249,288 98.99% 1987 -1988 15,942,564 15,311,519 96.04% 493,507 15,805,026 99.14% 1988 -1989 17,308,591 16,678,689 96.36% 432,523 17,111,212 98.860/0 1989 -1990 18,962,055 18,119,326 95.56% 392,912 18,512,238 97.63% 1990 -1991 21,031,117 19,863,098 94.45% 433,571 20,296,669 96.51% Source: County of Orange Auditor Controller's Office 74 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ $12 $10 $8 $6 S4 $25 $20 $15 S10 S5 So Total Assessed Valuation (Billions of Dollars) 11)11 -h' 194 2.4h 168381 ISN�H5 f(:5 8(1 14.. - !9N :I -M -n 1:AgUO I'PAI 11 Total Property Tax Collections (Billions of Dollars) 1981 -82 1982 -83 1983 -8-i 1VS -1 -H5 1985 -80 198b -8' 191, 7 -NS 1988 89 1989 -90 1990-9 1 75 Construction Activity (Last Ten Fiscal Years) Fiscal Building Percentage Estimated Percentage Year Permits Issued Change Valuation Change 1981 -1982 7,362 $109,219,967 1982 -1983 5,224 - 40.93% 70,182,421 - 55.62% 1983 -1984 6,711 2216% 93,270,502 24.75% 1984 -1985 7,050 4.81% 186,359,481 49.95% 1985 -1986 8,263 14.6s% 178,846,581 -4.20% 1986 -1987 9,859 16.19% 180,434,990 0.880/0 1987 -1988 9,337 -5.59% 120,512,114 - 49.72% 1988 -1989 9,228 -1.18% 194,655,287 38.09% 1989 -1990 8,800 -4.86% 118,087,775 - 64.84% 1990 -1991 7,600 - 15.79% 110,500,000 -6.87% Source: City Building and Planning Department Bank Deposits (Last Ten Fiscal Years) Calendar Year 1981 1982 1984 1983 1985 1986 1987 1988 1989 1990 Bank Deposits $1,372,657 $1,477,469 $2,045,230 $1,770,228 $3,480,426 $4,702,801 $6,011,254 $6,529,897 $6,631,511 $6,971,424 1991 data for bank deposits will not be available until 12 -31 -91 Source: The Findlay Reports on California Financial Institutions 76 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ M ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Estimated Value of Construction / Number of Building Permits 10" $200 9000 W" AOMWWWAW04 $180 8000 $160 :t� 7000 $140 6000 $120 0 5000 $100 4000 $80 O wo S60 Ca $40 1000 520 U 50 1981-92 1982 -S3 1983 -8, 1481 -85 5-85 1988 N9 19,99-90 Estimated VtIUC of CouStrLICUiOn ® ---4*— Number of Buildim, llerniits Bank Deposits (Billions of Dollars) $7 $6 $5 $4 $3 $2 $I $0 1981 1982 1984 1983 1985 1986 1987 1988 1989 1990 77 Property Tax Rates - Overlapping Governments Per $100 of Assesed Value (Last Ten Fiscal Years) Fiscal Year School Districts county Improvement County Flood Control County, City & School Levy hteuo Water OC Sanitation District District Total 1981 -82 $0.11166 $0.00050 $0.00270 $1.00000 $0.01980 $0.00991 $1.14457 1982 -83 0.06740 0.00043 0.00237 1.00000 0.01660 1.08680 1983 -84 0.02133 0.00039 0.00210 1.00000 0.02370 1.04752 1984 -85 0.01938 0.00032 0.00177 1.00000 0.01560 1.03707 1985 -86 0.01434 0.00030 0.00163 1.00000 0.01640 1.03267 1986 -87 0.01186 0.00027 0.00142 1.00000 0.01480 1.02835 1987 -88 0.00916 0.00022 0.00117 1.00000 0.01120 1.02175 1988 -89 0.00852 0.00022 0.00111 1.00000 0.01100 1.02085 1989 -90 0.00826 0.00017 0.00093 1.00000 0.01210 1.02146 1990 -91 0.00252 0.00016 0.00082 1.00000 0.00970 1.01320 Source: County of Orange Auditor - Controller's Office Computation of Legal Debt Margin June 30, 1991 Total assessed value of all real & personal property Debt Limit percentage Total debt limit Amount of debt applicable to debt limit Legal debt margin (1) The fiscal year 1991 debt limit is based on assessed value being equivalent to 1000/0 marked value. Source: City Finance Department 0. $10,909,903,905 (1) 15% $163,636,409 0 $163,636,409 r ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH Principal Taxpayers June 30, 1991 Property Tax (listed alphabetically) Donald Bren Donald Byerly Robert Cohen John C. & Donna Crean Emption Claimants Harbor Island Corporation Richard Hausman Irvine Company Donald Koll Chen Nung Tseng & Hwa Kuan Chang Source: Damar Real Estate Information Service 79 Schedule of Direct and Overlapping Bonded Debt June 30,1991 1990 -91 Assessed Valuation: $10,762,738,602 (after deducting $146,355,303 redevelopment tax allocation increment) DIRECT & OVERLAPPING BONDED DEBT %Applicable Debt 6/30/91 Orange County 7.618% $104,366 Orange County Building Authorities 7.618 14,946,001 Orange County Flood Control District 7.62 6417,523 Orange County Sanitation Districts #5,6 & 7 Certificates of Participation 7.326- 97.509 10,906,798 Orange County Water District Certificates of Participation 1.662 2,195;485 Metropolitan Water District - 1.556 10,892,311 Municipal Water District of Orange County Water Facilities Corporation 0.072 44,928 Coast Community College District Certificates of Participation 26.199 5,333,768 Saddleback Community College District Certificates of Participation 0.998 255,887 Newport Mesa Unified School District 60.744 1,056,945 Santa Ana Unified School District and Certificates of Participation 9.991 2,657,606 Other School Districts and Authorities Various 131,000 Irvine Ranch Water District Certificates of Participation and Improvement Districts 0.042- 15.483 4,577,017 City of Newport Beach 100 TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $ 53,519,635 Less: Orange County Sanitation District #7 (100% self-supporting) $ 16,117 Municipal Water District of Orange County Water Facilities Corporation (100% self- supporting) 44,928 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $ 53,458,5900) (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue tax allocation bonds and non - bonded capital lease obligations. Ratios to Assessed Valuation; • Direct Debt • Total Gross Debt 0.50% • Total Net Debt 0.50% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/91: $16,469 Source: California Municipal Statistics, Inc. KC ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■