Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Fiscal Year 1993-94 Financial Statement
0 9 Newport $eacba C 2G.. • • • J i.. • • • forma e p e r t tWk, JUNE 30, _: 1994 • • • • • • • • • • • • • • • • Introductory Section s ` • � � 'e.� XBR�j,• �yrpG��� F�� W' m MC.y{ ��{ +3 9!°.I. � fir+ . 1 X i i y ? r+ ' 1 At 0 t i CITY OF NEWPORT BEACH Comprehensive Annual Financial Report . Year Ended June 30, 1994 • TABLE OF CONTENTS INTRODUCTORY SECTION (Unaudited) Table of Contents ......... ........... .. ..... .. ........ i Letter of Transciuttal ....::: .... GFOA Certificate of Achievement . xvii .. CSMFO Certificate of A ward for.0utstanding Financial Reporting. ....... .....xvm List of City Officials.. ":..: ... . .:..... ......... .:...... . Organization Chart ...: ....., ...... ....... .: Z. . xx FINANCIAL SECTION •. independent Auditors` Report ....... ...... .......:. 1 General Purpose Financial Statements Combined Balance Sheet,:- All Fund type s Account Groups: 4 Combined Stafem, of Revenues, Expenditures and Changes to Fund Balances All Godernmental Fund Types -. ...,t Combined Statement of Revenues; Expenditures and Changes .: 6 m:'Fund Balances - 8'udget.and:Actual -All Govern mental Fund,Types ......:. 8 _, _. Combined Statement of Revenues E Retained Earnm s ary. sand Changes m Pro net �3' Fun 12 ' g ,X11 ....... , All Combined Statement . Cash Flows o riet Fund T s P ......... 14 Notes to Financial Statements ........... ........... YPe ...... 17 •, Supplementary Information - • General Fund; Comparative Balance:Sheets ......., 41' Statement of Revenues, Expenditures and Changes in • Fund Balance Budget and Actual .,...... .......... 42. Special Revenue `Funds: • Combining Balance Sheet; 44 ` Combining Statement of Revenues,, ,, dttures and Cltanges in Fund Balances ....... :' ....... ............................... 48 Statement of Revenues; Expenditures and Changes in Fund Balance - Budget and Actual... State Gas Tax Fund ....:............. . ............. ..................... .......... 52 Arterial Highway Financing Fund ....... . ............................... :.............. 53 Federal Adopted Forfeiture Fund.: .................... Tide'and Submerged Land Fund..... . .... .............. ................ 55 ' • Contributions Fund........... . I. I .............I. I....... I . . . I . . . . . . . . ........... ., .56 t i TABLE OF CONTENTS (Continued) • Circulation.and Transportation Fund ....................... ............................... 57 • Building Excise Tdx Fund .......... .... ........... .....:. ........... .................... 58 Combined Transportation Fund ... , .... Community "Development Block Grant.Fund ............. . .. ................... 60 Ackerman Donation Fund::: ..... . Capital Projects Funils: ! • .. Combining Balance Sheet ...:.:. ....:...:. ....... ....... '; ............... 64 Combining Statement of- Revenues, Expenditures apd Changes to Fund Balances .... :.: 66 • , Statement.of Revenues,. Expenditures and Chan ges in'Fund Balance Budget and Actual: " Assessment Distriet Fund ...: .......... .....:: ... .... ..... 68 • Central Library'Cortstruction "Fund :.............. :...... ........... .,....;;.:69 Enterprise Funds • " Combining Balance•Sheer 72 is Combining Statement of Revenues Expenses and Changes in Retained Earnings ..;•: 74 •. Combining Statement of Cash Flows ....;::.. 'Internal Sernce- :Funds ; . Co ttbinnig Balance Sheet :. ........ 80 Combining Statement of Revenues Expenses and Changes m Retained Farnmgs 81 . . Comtiinrng Statement of Cash Flows....,.. .... ...., ............. ,.. 82 'Agency `Funds. r : •. Combining Balance Sheet` .. ....... L ombimng: Statement of Changes in Assets and Liabilities .......: 88 "Group: • General Fixed Asset Account" Miscellaneous Statistics ...:.: .................. . ......... ............... 93' Governmental Revenuesby.Source, Last Ten Fiscal Years 94 Governmental Expenditures "by Function, Last Ten Fiscal Years ................... 94 . Assessed and Estimated Acfuxi Values.of Taxable Fr, petty Last Ten Fiscal Years .......... 96 Secured Property Tax Levies and Collections, l ast Ten Fiscal Years ....................:...... 96 Construction Activity, Last Ten Fiscal Years ................ ............................... 98 . Bank Deposits, Last Ten Fiscal Years ................................ ............................... 98 Property Tax Rates, Direct and Overlapping Governments, Last Ten Fiscal Years. ........... 100 Computation of Legal Debt Margin ... I ................. ................ .. ...........................1.00 Nricipal. Property Taxpayers.as of 30 June 1994 .......... ........:... ..........:...............101 Schedule of Direct-and Overlapping Bonded Debt, Last Ten Fiscal Years .....................102 ii • • • Public Police; Fire, Paramedic, Disaster Assistance, and Marine Safety. • Public'Works: Engineering, Construction, and Maintenance of public buildings, streets, highways, parks, and infrastructure; as well as fleet maintenance and sanitations • Communes Development: Planning; Zoning, and Building Permit services "and enforcement. , • Community ' Services: Libraries, Recreation, Arts & Cultural, and Social Services: • Proprietary Functions: Enterprise Operations for water and wastewater. • utilities; as well as .Internal. Service.'Operatioxs for risk management and " ;fleet maintenance and "replacement:. DESCRIPTION OF REPORTING ENTITY. The: City of "Newport; -Beach was rncorparated September 1, .1,906 as a charter city in the` State of California The: City, operates: under, a Council- Manager form of • government and provides..ttie following , services: public safety (police, fire and marine), highway and streets, cultural and recreation, public improvements, plainmg and zomng uttlrhes; and general administrative services.` •, The financial: statements present the,financial';activity of the City of Newport Beach (the primary government) ' `and its `component units. .The component units discussed below are included in the City's reporting.entity bccause of the significance .,' of their operational or financial'relafipnship :with the, City, although these entities, are legally separate from each other.` However, the City of Newport Beach elected. pfficials have continuing full or partial accountability for "fiscal matters of ,these . other entities. The financial - reporting entity consists. of: (1) °`the City, (2) • organizations for which the City is financially accountable, and`(3) organizatio s for which t h e nature.and significance of their relationship with the City ale such that .. • exclusion would cause the City's financial statements to be',msleading or. incomplete. • An. organization is fiscally dependent. the'primar government if it is unable to : adopt its budget, levy, taxes or set .rates or charges; or issue bonded debt without ' 1by the In blended component approval primary government. a presentation, a units' balances and transactions are reported in a manner similar to the balances and transactions of the City.. Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's or • the component unit provides services almost entirely to the City. .. iv • • Blended Component Unit.. The financial statements of the City of Newport Beach, include the financial activities of the Newport Beach Public Facilities Corporation (the "Corporation"). The Corporation was formed on March arch 9, 1992, for the purpose of assisting the City of Newport Beach in the financing of public improvements,. including.. 6 public library. The Corporation is governed by a Board of Directors comprised of seven- iiid,iV.,i,d,i,i,a,l,s l..4ppoinied by the City, Council of the City of. Newport Beach. The ... Corp:o'ration's' financial data :and: transactions are included in the debt service fund- type, capital projects fund type, and gener at)ong-terrn debt account group. • siinent In 'pp additi6 !n but at a reduce to provide -,the the its residents and Beach have held lase :Because of - . I outstanding beaches and harbor, Newport Beach . attracts aday. This -';tourist popu.:Iationhelps,.t6'.maintain theCj but it also requires additional expenditures for routine Ou �City base, II Despite a generally favorable long-te'rrril..outlook, the current. ,,.economic. climate remains weak. In' addition, -recent budget actions by the State - (-bf - California have had an adverse'impact Reyenues� continue to fall well short of , long-term, trends, and correg have, been dui&.,, ents to appropriations necessary. In addition, significant non reoccurring expenditures have taken place br are projected. Monetary settlements arising from litigation, an unfavorable combination of decisions concerning aerospace industry sales tax rebates, and impleinentation: of the Americans , with: Disabilities Act have or will represent cash drains to the (fity of soiree significance. v Although the City's overall financial condition is quite strong, the aggressive response to these developments which began last year has intensified to insure continuation of. that healthy condition. Policy changes which will affect both expenditures' revenue sources have been instituted, and more such actions, are likely. it'year,:. actions initiated in �an&i loss in the, prior years to reduce itinued. In' ue sttucture, resultin ratified.. Special ope to to ,et td • Y 0me_positions- were replaced part time positions� MAJ,OR,,1N1T!AT1VE9, _ . in City programs being less For the Year. Some-of the budget reductions ,resulted, aggressive than originally planned; but there delay _in effecting • ,-:repairs, improverriehts,' or o�theI - r. I activities of "a priorit nature. Asa practical ma tter, larger capital impr a4enert projects: -generally encomimsS more than one fiscal y ear from ' design to construction, so these actions did not hamper their completibf 1. Street, � highway, and other :"transportation related L L projects co ntinued :to be the functional . area receiving the greatest j:emphasis, In addition, the C ity began: implementation lementation of" the Paramedic Subscriptlon"Lprogrami,�,,Whi�h was L S ignedto provide an improved. , ' L L level. of service. community t atLLL18IL'e self - supporting. A number of projects to the L begun in prior. years were still L underway in fiscal year 1993-94. In addition, the Groundwater Development, * project, which is one of the most significant ,undertakings in the City's history, was approved by the City Council. Work commenced, and bond financing in the range of $17 million for the project was anticipa1ed early in the next fiscal Year. • vi Ah •, For the Future. As mentioned. above, the economic slowdown and resulting revenue shortfalls for the City have resulted in delay and modification of some of the improvements and programs originally scheduled. However, the City's, planned capital improvement program extends for several years into the future., In addition, budgets for actual capital ;:;projects. cover three fiscal years," with the ` knowledge, that many of them are not completed in the Erstyear. In addition to the Groundwater Development . Project mentioned above, 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 continued-: work on replacement of the Lido Park bulkhead,. of the" Balboa Island bulkhead, extensive sidewalk, curb, and gutter* repair /replacer"i ent, replacement:of streetlights, park and athletic field improvements, and various other • . street and highway _repair ;projects.. Replacement of mains` and other water and wastewater iinproveinentsiwiil also.be moving forward. ` Work will-'also continue on the final portion of initial implementation of the < Geographical hiki mation System, with emphasis on completing the, computerized .. Gity base map and:: upon .. further .development of the Building ,Department Permits ;tracking system Development. of the relational database and its.. design Configuration will 6iifi ii? during; the next fiscal year. The City's primary micro • computer network r8. also completing a,much: needed renovation. The City will" also continue fo mamtam.iis high:`level of safety,programs. through the. Police, Fire, 'and Marine pepartments The City's "social programs will be coordinated 'by" the new Coin munity,,Services'Department which was formed by corimbii ing the functions of the ;;_Library and.Parks, Beaches, aiid Recreation Departrnents..buring 1993 -94 the City;: entered the''_ final phase ", of the integration o. its its automated financial. management. system. The. full range, of financial management: functions, to include; purchasing, payroll; 'cashiering, accounts payable, accounts receivable, inventory, . fixed assets, property :control, budgeting and a variety of related. functions are being consolidated in the system for the first time." FINANCIAL'- AND PROCEDURES �. Internal Control Sfrueture. Management" of the City is responsible for'establishing and maintaining aniriternal control structure designed to ensure that the assets of • the government are protectedfrom; loss, theft or misuse and: to ensure that adequate accounting data are compile&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 concept of reasonable assurance recognizes that: (1) the cost .. of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and.benefits requires estimates and judgments by management. . vii The City .of:Newport Beach has initiated a comprehensive program to reduce vulnerability to fraud, waste, or abuse through an, improved internal control, structure just prior to this fiscal year.. Purchasing, Accounts Payable, and Property • Control Procedures have been.rewritten and implemented. A new Internal Review Technician position has been filled. The Travel Policy and related procedures have • been rewritten and adopted; as,has' the City's Investment Policy. Warehousing, Stock Issuance, and Property Disposal Procedures havebeen rewritten, and Standard •. Operating Procedures for the Accounting and Purchasing Divisions have been , substantially. revise and ripdated. The project of upgrading the property control system and records, which was a significant.undertaking, is nearing cgrnpletion. Through thjs,.effort, the City's complete Purchasing and Distribution system, from.. identification of need through .purchase action, issuance, and eventual disposal, continues to be examined; modified, ;and restructured. Impleneritation of changes will :continue through the 199495 :fiscal year. Single Audit As a recipient of federal; state and county financial assistance, the City is required o undergo, an annual audit in conformity with the provisions of. the rz Single Audit Act of '1984 and the U:S.. Office of Management and Budget Circular A I. , , -: udits of State and Local.Governments.. As part of the City's single audit, tests are,inade to. determine the adequacy ;of the internal control structure, including „that • portion related to federal finaeicial;assistancer :programs, as wejl as to determine that the`Crty has complied with apphcable.laws and regulations. The results of the "City's • sugle audit for the fiscal year :ended. J ine 30, 1994, 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 •._ Scileduie of: Federal` Financial Assistance, findings and recommendations; "'and independent auditors reports on ,the internal control structure and compliance , ivitlt applicable laws and regulations are included in a eparatereport,, Budg.eting Controls and' .Changes:, The City of Newport Beach maintains budget • controls -. The objective. of, these- controls, :is to ensure :compliance with _lega1 . provisions embodied in the, annual appropriated budget approved by the Clty Council $udget control is maintained at the fund, level, or _project level in, the governmental fund `types.;i The City maintains an encumbrance accounting systeiri 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' by' the City Council, is made to ensure that .adequate funding is mailable The City's Budget Policy was completely • rewritten and implemented "this fiscal year The, City has recently incorporated, the use of Internal Service Funds to more •. effectively manage functions across departmental lines. The Insurance. Reserve Fund was:phased in during fiscal year 1991 -92 and was intended to assist the City in • assessing the full extent of its.liability for claims and judgments exposure and compensated absences. Rates have been established in an effort to fully fund these viii. liabilities. over a five year period which started in 1993-94. During the 1993-94 fiscal. • year, the - City begin to administer, : plan, and budget for the acquisition, maintenance., and repair of major rolling stock through an Equipment Internal Service Fund. Other functions may follow. • FINANCIAL. INFORMAT!ON...�,.,,:...,;,,,,, The information in this section, pertains to the City's general, governmental operations. General goverrimental.function finances are administered through the General; -Special Revenue, Debt Service, and Capital Projects. Funds.' • Revenues; The following schedule (expressed in thousands) presents -a slitfunary of General Fund, Special Revenue F urid, Debt, Service Fund,. and Ca . pital Projects . Fund revenues fof.the'fiscal year ended June 30, 1994, and the percentage of increasos:. and • decreases., in: relation to the three previous :years' revenues. • lfsliould,.be noted . that: the largeAncr.'ease in Miscellaneous Revenue which resulted- from orie-finie private donati6h - related to construction of the new. Central Library_ . accounted for about of the overall revenue increase. In addition the fat - t • that the City expexiA.mced...-a.signi icant net decrease in total revenue .over the past • • three .years, despite some recovery. during 1993-94; is representative of the overall ..'economic decline, ::as w011 as State .-l.evel 'budget actions which had ' the .:eff I ect. of ;significantly f6duang . c . ertain tax . revenues previously allocated to the City. jhe,- .....0,eclihe in Revenue from Qse:of Money and Property is a reversal of trend. During and. th& >rise 'about iformation I section.tb. Since —FY 1990-91 -30.5910/. -18.46% 6.01% -13.13%, -13.38% -39.82% -8.50% Taxes Licenses, Fees, & Permits 57.410/.-.. Intergovernmental $1,949 Charges for Services 8.58-X0 Fines .& Forfeitures • Use of Money &'Property $5,077 Miscellaneous 7.95% Total 3.91% 4.76%, and. th& >rise 'about iformation I section.tb. Since —FY 1990-91 -30.5910/. -18.46% 6.01% -13.13%, -13.38% -39.82% -8.50% $39,809 57.410/.-.. 148% $1,949 2.81 %' ' 8.58-X0 9,993 12.97% 17.99% $5,077 7.32% 7.95% $2,706 3.91% 4.76%, .$8,6.61 12.49% -8.53% $2,140 3.09% 72.16% $69,335 100,00% 5.23% ix and. th& >rise 'about iformation I section.tb. Since —FY 1990-91 -30.5910/. -18.46% 6.01% -13.13%, -13.38% -39.82% -8.50% Percentage Change in Revenue 600096 -AFT Y 40.00%.. v ifl�'al Ya?k, r 6nnge s3Wse tR90 -9) __. _ • • • • • • • .. ..L F scaMAr 1993 -94 Revenue by Source 3.00% 58.00% Taxes ■Ltcenses & Permits 12.00% ■ InteigovernmenaaI ■ Charges. -jor Services ■ Fines &s: Forfeitures ■ Use of Money & Property .; ■Miscellaneous . :, 4.00% 7.00% • • • • • • • • • • • • $35,000 $3 &000 $25,000 $20,000 Change in- City Expenditures (thousands of dollars) $15,000 - - - - - - - - — - - - - $10,000 $o -- 19W90 1990 -91 1991 -92 1992 -93 '1993 -94 Fiscal Year 1993 -94 Expenditures Cumulative Change Change Amount ..:Percent of Since FY Since FY Expenditures -1Qjg.Q1 TotaI 1992-93 199 - Current: General Government $4,607 6,067o $247 ($2;694) Public Safety $32,330 ' 42.51% ' , $1,120 $5,418 Public Works $15,019 19.75% ` $2;240 ($2,228) Community Development $3,407 4.48% ($229) $3,224 Community- Services $5,911 7.777P.. ($2,610), ($1,372) Capital Expenditures $13,606 17.89% $1,386 ($5,893) Debt Service $1,175 1.54% Total Expenditures $76,055 100.007o $2,174 _ _ ($2,370) It can be seen from the above table that City expenditures have declined 'significantly, since fiscal year 1991. Inside this overall trend, however, are a number of significant . factors which.give a more complete and accurate picture of the restructuring of City spending that has taken place: XI 1. While overall spending went down went down since 1991, spending on Public. Safety and. Community Development actually went up. The. largest proportional reductions were in.General.Government and Capital Projects. 2., It would .appear that most of the decline ..in... total spending happened in 1991- 92-.However, significant one -time expenditures resolving liability. issues which took place in 1992 -93 cause s di stortion in those 'figures. 7,1991-92 was relatively 'light" in liability_ expenditures. 3. Certain. , - which' , had been: .classified as General (Ov6rnment in 1991-92-v were reclassified as Community DevelOp iMent ;thereafter. Similarly, expenses. from narcotic seizure fu nds had prevIi O illy been classified ` a as General GovOinment, but they have since been.,rcclassified as.Public -Safety. Therefore,. the :-�-,magnitud 11 three of these functional e of ihe�. tel�tfvo changes �in a expenditure at I c egop s�-Js somewhat'less than it would appear from the raw numbers _ e� above:`%:i:... 4. The decrease in was due, to completion /-Winding down of -sotrj�� xii • • • JO: Enterprise. Operations. The..City had "four enterprise operations.-at June 30, 1994: Water,..Wastewater, Marinapark. and Cannery Village Parking. An analysis of the City Enterprise Fund operations indicate the following resul,ts for fiscal year -1993-.94:' - The Water enterprise operation reported net income of $884,173. The majority, of • this income is _being retained.,, for future water sources. During the year, a residual equity transfer of $209,461 was made to the. Equipment Fund. • The . Wastewater enterprise operation reported net income of $755,450. During the year, a, residual equity transfer of $322,939 was made to the Equipment Fund. " • The Wastewater Fund finished up'the.year with..retained earnings "of $2,962,802. • The Marinapark enterprise operation reported net income .of $0, which. included • interest income of $7,527 and transfers- to the General Fund of $489,147 at June: 30; • 1994. Total operating income, for ;the City's Marinapark operations. for. the 1993- 94 fiscal year was.$481,6' The Cannery. Village Parking enterprise. operation reported net income bf $65511 • for the fiscal year ended June 30, 1994, exclusively from operating,income. • Defined Beit'ef:t Pension Plan. The City contracts with Ca m lifornia Public" Employees Retireent: System. (PE provide :certain retirement, disability; death -':and . survivor .benefits for.'full time employees. The annual actuarial valuation " "by PERS . ;` changes -fzoin year to. ;year, and the City's contribution rates are modified accordingly Deferred Compensation (Retirement) Plan for Part -Tune Employees. In addition to • the PERS retirement: plan fo'.r;'f 61L.1itne . City. employees, the City contracts with the " Pub1i Agency Retirement System'(PARS) to provide federally mandated retirement • benefits for part time employees Each part time employee contributes 3.75,' percent of salary, with the` Cit y contributing a matching 3.75'percent; to` this retirement: During the year, the City entered into 'a $116,682 capital lease agreement for financing the upgrade of.equipment and software to the financial management and • data .processing. systems a $533,936 capital lease agreement for financing the acquisition of afire truck,, and :a $86,205 capital lease agreement for financing the acquisition `of an: air sweeper. .Totai. future .debt service payments at June 30,.1994 were $732,594 less than they were on June, 30,.:199 • Cash Management: It is the City's policy to meet all its financial' obligations in a timely manner 11: is also tie City's policy to invest all temporarily idle short term funds and longer" term reserves in a manner that will maximize "`return, without sacrificing security of .jeopardizing liquidity requirements. Idle funds** are. invested in accordance with the Government Code and a formal investment 'policy approved_ • by the City Council. The`; policy. allows, investments..in a variety of specific..:- instruments;,, as well as certain state; county, and private isectqr investment pools andasset management services, Ceftificaies of deposit, demand deposits; bankers acceptances, U.S. Government .`and Agency Securities, repurchase ` agreements,, commercial paper, •the Orange County Pooled Investment .Fund, and the . Loeal Agency Investment,.fiA d (State fool). are examples. The: City s investment strategy is designed to ' nor mally place most of the funds with •: three government „pools.and three ::private. sector investment management firms Each of these intermediaries is constrained to an investment program at least as restricrive as tie policy governing the. City's direct investments. Addirionally, -with • regard ;to the private .sectot.:firms,: all cases or securities managed, by :them on the City's behal€ are held; by well establisied and highly reputable third party custodians `i • City's Return on Investment Portfolio: 0.12 •. al - 0.08 0.06 MUs was 0.1 4 M, PON *'!•Cansaaies Prlee 2adex 0.02 • S Y i ''sCtEy sa&etQm on tnveshnem 0 Jane, 1989 Jung; 1"0 Jane, 1991 June, 1992 June, 1"3 Jme,1994 xiv .: • In order to be awarded a Certificate of Achievement, a government unit must. publish an easily readable and efficiently organized comprehensive annual financial report, .. whose contents satisfy both generally accepted accounting principles arid. applicable. legal. requirements.. • A Certificate of Achievement is valid for one year "only. We believe: our current report continues ._to conform, to the Certificate of" Achievement program. requirements, and we are mitting sub it to GFOA. •.. The California Society of MuxucipaLFinance Officers. (CSMFO) is a state organization' which sponsors: extensive training and emphasizes,higH standards in: atlsaspects, of " muriicipaf finance operations, including financial reporting. As a result ,.of last year's Report, the City of Newport Beach is fortunate to_have remained "among the ranks of - California Cities which have met the rigorous standards of financial, reporting . required of recipients, of ithe CSMFO"Outstanding Financial" Reporting Award: We will be submitting the.. report : to CSMFO for consideration again yeax as Well. ? ; COVER AND DIVIDER PAGES The artwork and design for the cover of this report was done by Gino Wormac of the City's General Services, Division:. The back cover, and divider page illustrations J • depict, various outdoor recreational and athletic activities -which are popular zn Newport Beach The photographs were contributed by the Community Services Division `and a number of`:other, City employees. Monica Kutz of'the Personnel Department helped with design and "iayout, ACKNOWLEDGMENTS . • Preparation of this report "could not, have been accornplished without the effccient and. dedicaied services, of a number of personnel. It.would be "impossible to :name them all Virtually everyone in Accounting and the`Print Shop contributed'to,the. project. In "ad "dition, members of the Finance Department would like to thank the Mayor and City Council for:`their "interest and support in. planning ".-and . conducting `'and • the Financial operations of the City in a responsible progressive 'manner. W.6 ., would also like to' #hunk .our auditors, KPMG Peat Marwick," for their time and . assistance in the preparation of the: report.::: This report p-.as prepared, assembled, .: •.:: printed and bound by City employees. evin y Dennis C. Danner.•: .City 3vlana er Finance Director xv r to of nent le, ical ing to art Beach; President L Executive Director Clarence J.'1'inner I' Mayor Evelyn Hart Jean Watt Jan.Debay Council Member. Mayor Pro Tern Council Member • John C. Cox, Jr. Phil Sansone John W. Hedges Council Member.. Council Member Council Member '• Principal Administrative Officers • ati r = Kevin J. Murphy •Wanda Raggio City Manager Robert H. Burnham. City Clerk City Attorney • Kenneth J. Delino Deputy City Manager • Raimar Schuller..;.. ................. .......... ...... ............................... ............ Building Director LaDonna Kienitz .......... . ..................... ........ ............................... Community, Services Director • Dennis C. Danner ....................... ............................................................ Finance Director . " Tim Riley ............. .......................:....... .... ............................... ....... Fire Chief David E. Niedeihaus ............................... ::::.. ............................... General Services Director . .. • David Harshbarger ............ ............ ............................... Marine Departinent Director Duane K. Munson .... :..: .............. :............................ .:............................. Personnel Director James D. Hewicker....:.. .:...........:....::.........:...................... ..............:.........Alanning Director • Bob McDonell ........................... Police Chief Benjamin B. Nolan ..................... ................ ............................... Public Works Director. Jeff Staneart ...... .................:..:...:...... ........................ .............................. Utilities Director r Xix Financial Section r.` KPMG Peat Marwick LLP ..: Orange County Office Center Tower .: .: 650 Town Center Drive Costa Mesa, CA'92626 i Independent Auditors' Report • The Honorable Members of City Council City of Newport Beach; California. ' • We have audited the general purpose financial statements of the City of Newport Beach Califomia (the "City "), as of and for the year ar'ended'June 30, 1994, as listed' in the accompanying table of • contents. These general purpose financial statements are the'responsibility of the City's management. Our responsibility is to; express_ an opinion. on these general purpose financial. • statements based on our audit We conducted our audit -in accordance with generally accepted auditing standards: Those standards. requue that we plan and: perfoini the audit :to obtain reasonable assurance about whether, the general PUT financial statements arefree'of matertal:misstatement. An audit includes examining, on a test basis; evidence supporting. the ;amounts and disclosures in the general purpose'; Iriancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management; as well valuating the overall financial statement presentation •' VJe believe that our audit provides:aaeasonable basis for our opinion. In. our opinion, the general purpose financial statements referred to above present fairly,'in all • material respects the fnancial. position of; the 'Ciry of Newport Beach, California; as of. June 3t1, 1994, and theiresults of. its operations -and the cash ;flows of its propnetaryfund types f or. the yeas .. . alien ended inconformity with generally accepted accounting principles: Our: audit was made for the purpose of forming an opinion on the general purpose financial.. • statements -taken as a whole. The combining, individual fund and individual account group ; financial. - statements and schedules listed in the accompanying..table of contents 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, California. Such information has been subjected`to the auditing procedures applied „in the audit of the general purpose financial statements' and,, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements • taken as a whole October 10, .19.94 1 Combined Statements of g U Uablb Ate Act Due Do Dne DUE DiF Def cur Lon 1 11 Fund E CITY OF NEWPORT BEACH Combined Balance Sheet - Ali Fund Types and Account Groups June.30,1994 • F and 'Olhor Credfts:*� � ". I I • Contfibuted-capilbil, (Not,& 12) Investment In general bad assets Retained earnings (accumulated dell oil).- Unreserved Fund balances (Note 18): Riserved 1326023 813933 '�' �668,754 Unreserved, designated 8,664 795 124 Unreserved; undlesipated. (611354) 798,950 Total Fund Equity and Other Credits.-' 9.930.818 13,644,594 668,754 798.950 Total Liabilities, Fund Equity. and Other Credits $ :15,125,723 $ 15,779,394 $ 668,754 $ 2,607,383 Bee Accompanying Notesto General Purpoqe Financial Statements. 4 • Governmental Fund Types • Special D Debt c capital • Assets and Other Debits. � �.o,General r R Revenue S Service P Projects • nvestments (Note 2) 1.: 9 9,550 5D6 $ 12,555;643 $ $: 2,607,383, eceivable and accruad;ievenues 1 1,540,425 2 250;876 1102 2,417., . tthergovernm" 1 1699.979 1 1,893498, ither funds (146f6 Ali 2 2,164,438 Ith other agencies of matsrlala and supplies, at cost A A57,954 • i Sssili cash and investments (Note 2) $ $ 6 666;754 • is 13,321 Is (Note 3) • affable In-dibi service fund • j* provided for payrnent- W long-terrROobt i Assets and Other 6:6bit9 _' 6 �15,125,723 1 15.77q,394 $ 6 668,754 607 3 1764d Equity and 01'6eirtredits is payable and acc0#'d.'.Ijabi1Mas $ 2 2 b1`3 4N i '1 $ 206,851 IpayioB ... ... 1 1,,067,316 . ..902 )thgr fufida (N8lelj . ..... 5 54883 1;198,032 irevenue 2 297 6 1 1 I179133 tondholders(Note 5) .; f f Ithers a 1 1816,629 _ _169320 4 403;550 J compensation (Note 7) portion of long-term debt (Note 4) debt (Note 4) 5J94,9 0 0 00 - 1,8084 and 'Olhor Credfts:*� � ". I I • Contfibuted-capilbil, (Not,& 12) Investment In general bad assets Retained earnings (accumulated dell oil).- Unreserved Fund balances (Note 18): Riserved 1326023 813933 '�' �668,754 Unreserved, designated 8,664 795 124 Unreserved; undlesipated. (611354) 798,950 Total Fund Equity and Other Credits.-' 9.930.818 13,644,594 668,754 798.950 Total Liabilities, Fund Equity. and Other Credits $ :15,125,723 $ 15,779,394 $ 668,754 $ 2,607,383 Bee Accompanying Notesto General Purpoqe Financial Statements. 4 5 • Proprietary Fiduciary Fund Types Fund Type Account Groups > General General Total •; .. Internal 'Fixed Long -Term ..(Memorandum Only) Enterprise Service Agency .: Asets Debt 1994 - • $ 14,296,003 $ 3,001,513 $ " :19,527,811 $ 61,538,859 2,777,042 4,568,346 1,022,417 '. 3,593,477 2,164,438 631,284 8,31,284 ' • 54,192 167,210 3781456 95,337• 764,091 $1 70,359 • 29,129,848 3,831,819 $ -70,452,855 303,414,522 $ . 668,754 668,754 • 10,550,624 10,550,624 $ ' 46;352,503. $. 7831;826. $ ;19,527,811 $ 70,452,855 $ 11;219,378 $ :189,365,627 • $ 1,336540 $ . 253,4.14 $ 41540.791 38,887 12,400 1,119,505 911;523 2,164,438 1,476,469 S. .:... 325 127 .:.. , 325,127 84,888 84,888 .. 103,980. 2,493 679 19,117;796.: 19,117,796 2,712,275 2,712,275 17,627,865 $ 11,219,378 28,847,243 , 2,390,930.; 20,605,954 19,527,811 11,219,378 62,882,211'' • ' 13,853,747 4,097;648 97,951',395 $ 70,452,855.' 70,452,855 • 30,107,826 (17,071;776) 13,0361050 • 2,808,710 21,486,810 747,596 • 43,961,573. (12,974,128). 70,452,855 126;463,416 • ., $ 46,352,503.. $. 7,631,826 $ „19,527,811 $ 70,452,855 $ 11,219,378 $ 189,365,627 5 CITY OF NEWPORT BEACH Combined Statement of Revenues; Expenditures • and Changes in Fund Balances All Governmental Fund.Types For the Year Ended June 30, 1994 Governmental Type Funds Special Debt Revenues: General Revenue Service ; Taxes $ - 39;809139 licenses, fees and permds 881.;774 $ 1,D87;081 Intergovernmental revenue 3,980 ;889 4,6481706 Charges for services , 4;970,181 107,:188 -; Fines, forfeitures artd penalties 2,527,815 178,379 Revenue from Use of money and property , 4,297,327 4,126,278- $ 64,4351. • Contributions 534,483 517 ;923 Other 1,040,844 27,831 • Trftftevenues "' 58,042,452 10,673,386 64,435 Expenditures • CUrr General government 41607,009 Pub�le safety 32,156,176 174,162 • Public walks 150.18,898 Community development.: 2,836,241 570,471 Commuaetvfces nf(y 5,457;065 453,687 • Capdal expgnditures 6,093,891 2,783;330 Der# Serwce + „, Pnneipal retirement (Note 4); 290;781 88,763 130,000; Interest and fiscalcharges 43;737 159;609, 4621285 T'61 Ex penditures 66,503;798 4 230;022 592,285 •` Etcess,(Deficiency) of Revenues Over (Under)Expenditures' (8,4611346) 6443 ;364 (527,859)9,, , • Other Financing 86vrces (Uses); Operatingtransfers.In 5,832;397 361,121,` . Operating transfersout (357;966) (41A78,407) (15787) Proceeds from long.- term.debt (Note 4) 116,682 Proceeds from sale of fixed assets 1;027;130 ., • Total Other Financing Sourdes tUses) 6,618,243 (4,478,407) 341,334 Excess (Deficiency) of Revenues'and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (1,843;103), 1,964,957 (186,516) • . Fund Balances, July 1',.as restated (Note 18).. 11,773,921 11,679,637 .855.270 Fund Balances; June.`30 . .. $ 9,930,818 $ 13,644,594 $ 668,754 •' See, Accompanying Notes to General' Purpose Financial Statements. • 6 . 7 Total. Capital: (Memorandum Only Projects 1994 $ 39.809,139. 1.948,855 .. $: 363,694 '8,993,289 5.077.369 '2,706,194 . 172,559 ' 8,660,599 18,486 11070,892. • ., 1.068 675 5541739 69;335,012_ . •. 4 607 009 , 32 330 338 .15-018898 •: 3 p 4.06,712 59:10752 4 728,482 13 605 703 • 509 544 , 665.631 • 4,7.28 482 76,054 587 • (4,173743) (6,719,575) 19 787 6,213,305 (49,867) (4.906,027) 116,682 r� 1,027;130 (30,080) • (4,203,823) (4,268,485)' '5,002,773 29,311,601. _• $ 798,950 .', $ '25,043,116 7 CITY OF NEWPORT BEACH Combined Statement-of Revenues, Expenditures and Changes in Fund Balances • Budget and Actual AII`Govemmental Fund Types For the Year Ended June 30, 1994 ... General Fund Variance Budget Actual (Unfavorable) Revenues,,.' Taxes' $ 38,387;832 $ .39,809,1$9 ' $:'1;421;307. Licenses, fees and permits 1,004,703 881,774 (122,929) Intergovernmental revenue 3,365,147 3,980.889 615,742 Charges for services 6,256,719 4,970,181 (1;286,536) • Fines, forfeitures- and penalties 2,918;079 2,527,815 ; . (390,264) ,, Revenue from use =of money and property 6,055,349 4,297,327 (7;758,022) • Contributions-'-,-* - 642,165 534,483 (107,672j Other 290,396 1040;844 750,448 TolORevenues 58,920,380 58,042,452 (877,928) •` Expenddures CuneM General government 4,644;965 4,607,009 -37,956 Public Safety 32,016,505 :32,156,176 (139 671) Public works % 14 919,198 15,018,898 (99 700) -;.. .• Commun+ty`de'velopmerR. 2,885,465 2,836,241 49,224 Community services , 5.743i668 5,457,065 286,603 •::" Gh tal.ex"R ituies 11 207.388 6,093,891 5,1:13,497 ' Debt Service Pnnoipal Retirement (Note 4) 290781 290,781 Interest and fiscal charges;.;: 43;737 43,737 • Total Expenditures , -66,503, 8 5,247,909 ..; • F�coess (Deficiency) of Revenues Over (Under) Expenditures (12,831,327) (8j461.346) ': 4,369,981 •, Other Financing- Sources (Uses): Operating transfers m 13,181,892 5 832 397 (7,349 495) Operating transfers out (7,192,929) (357 966) 6,834,963 • Proceeds from "46rig =term debt (Note 4) __ 116,682 1 16,687 Proceeds from sale of fixed assets 1,199,060 1,027;130 (171,930) • Total Other Finanang'S¢uroes (Uses) 7,188,023 6,618,243 (569,780) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under).Expenditures ., and Other Financing Uses. (5;643,304) (1,843,103) 3,800,201 �.. Fund Balances, July 1, as restated (Note 18) 11,773,921 11,773,921 Fund Balances, June 30 $: 6;1.30,617 $ 9,930,818 $ 3,800,201 See Accompanying Notes to General'Purpose FinanciatStatements. • 8. . Special Revenue Funds Debt Service Fund Variance Variance Budget Actual (Unfavorable).. Budget Actual (Unfavorable) $ 1,199.582. $ 1,067,081 $ (132,501) • 2.642,140 4,648,706 2,006;566' 20,200 107,188. ,86,988 350,000 "" 178,379 (111,621) . • 4,781,510 4,126,278 .. (655,232) $ 64,435 $ 64435. 1,685,000.. 517,923 (1,167;(177) "' 2;525 27,831 25 306. • 10,680,957 :10,673,388 (71571)_ 64,435 64,435" • 166,194 174162 (7968) 722,050 570471 151"!546. •.:.. 493,989 453687. 40302 8:453,302' 2783330 5,669:9712.. • 88,763' 88 763: 130,000 130 000 180,337 159,609 20,728 462;285 .. 462,285 ' • 10104,635 4,230 022 .5,674 613 ". ": , 592,285 5921285 576;322 6,443,364 5,867,042 " , , (592,285) (527,850) 64,435 • (4,646,448)' 168,04.1 361 121 (19,787) - 361;121 (19,787) „(4,478,407) •. (4,646,448) (4 478 467) . 168,041 3411,334 3411334 • .: (4,070,126) 1,964,957 6,035,083 (592,285) (186,516) 405,769 11,476,271 11,476,271.. $ 855,270 855,270 :• $ 7,406,145 $ 13,441,228 $ 6 035,083. $. 262,985 $ 668,754 $ 405,769' (Contiriued) 9. CITY OF NEWPORT BEACH Combined_ Statement of Revenues,. Expenditures and Changes in Fund Balances • . Budget and Actual All Governmental Fund Types (Continued) For the Year Ended'June 30, ;1994 •.; ' Coriifal Orniacfe Flnrle - � ' Revenues: Taxes Licenses, fees an( [nteroovemmental E Charges Fines; to Revenue Contnb Na Service R't ?rioapat et R ':' lnterest?snd M nd penalties se of money and property 172,559 172,559 - 18,488 iilPS 554739 554'739'-..' - lures '. ;';5,149,013 4,728,482 = 420;531 (Deficiency)'oi Revenues Proceeds from sale of faed.assets • Total Other.FinanGng SoUtces (Uses) (30.080) r, (30,080) Excess (Deficiency)01'R and OthecFinancing Sources Over, (Under) Expenditures and Other Financing Uses .(5;149,013) (4,2031823) 945,190 • . Fund Balances, July!. as restated (Note.18) . 3,902,773 3,902,773 Fund Balances, June 30 $ (1,246,240) $ (301,050) $ 945,190 • See Accompanying Notes to General Purpose Financial Statements: 10 '' _ OIIPIIYY ., ' Budget Actual (UnTavorablej .. '1,421,307 $ 38,387;832 $ 39,809,139 $ 2,204,285 11948,855 (255,430)= • 6,007,287 8,993,289 .2,986,002,' 6,276,919 5,077,369 (1,199,550) 3,2681079. 2,706,194 (561,885) • 10,836,659 8,660,599 - (,116,260)- 2,327 155' . 1;070,892 (1,256,263) ,'.• 292,921 1,068,675 775754,,:1 69,601;337 69,335,012 (266,325) . • 4.644;965 4607 009 37,958 '.. ,.• 32182,699 14,919,198 32330338 15;018;8913 (147,639j` (99,700) 3;607,515 3:40611i2, 2 : 200;803'. . ,• 6237,657 5 910 752 326 905 " 24:809,703 13605703 11,204,000 :. 509,544 509 54.:4 '. • 686,359 665,63'1 20,728 87697;640 76054;587 11,543,053: • (17,996,303) (6,719,575) 11,276,728 13,181 ",892 6,213;305 (6,968,587) • (11,839,377) (4,906,027) 6,933,350 116,682 116,682 1,199,060 1,027,130 (171,930). 2,541,575 2,451,090 (90,485) • (15,454,728) 28,008,235 '• . ' $ .12;553;507 .. (4,268,485) 11,186,243 28,008,235 $ 23,739,750 $ 11,186,243. 11 CITY OF NEWPORT BEACH • Combined Statement of Revenues, Expenses Total Operating Revenues .1_; "' 14,907,095. and Changes in Retained Earnings. Operating Expenses: All Proprietary Fund Types • For the Year Ended June 30,.1994 6,846,369 " • 958,408 Internal Depred tion Enterpn so: Service • Operating Revenues 982,439 • . Char9es for services $ 14,733,446 $ 5,771,444 451;531 Other 173649 44;,439 Fleet "parts and supplies Total Operating Revenues .1_; "' 14,907,095. 5,8.15, 883 Operating Expenses: . Purchase of water 6,846,369 Salaries and wages 2,615,523 958,408 Depred tion 1,460,989 11149,618 • Pro, Ossional services 982,439 77,814 AAerntenance and supp1' 451;531 129,370 • Fleet "parts and supplies 445,998 Systi ms maintenance 659,660 VYorkers' compensatron 3,506;016 Claims and judgements 3,554,026 Compensated absences 2,133:,384 �. Other. 588;596 Total bperatmg Expenses.. 13,605;107 11,952;634. Operating Income (Loss) 1,301;988 (6,136,751) • Nonoperating Revenues (Expenses): Interest Income 843;795 Other:InCOme 74;872 CITY OF NEWPORT BEACH Combined Statement of CasK Flows: All Proprietary Fund Types For the Year Ended June. 30, 1994 ` Ent rise I t erp n erna Funds Service . $;.1,301,988 $ (6,136,751) Ime to • hies (Increase) decrease in accounts receivable 1,460989 ,, 1,149,618 a) • • Other revenue,;:; .. , 74,872 400 Changes in ope4fittg assetsand liabilit}es: 902 • 238 (Increase) decrease in accounts receivable :(77,546) - • 026 (Increase):decreasein deposits wth other agencies 725) 131) (Increase) decrease in.1 nventorlesof materia' and supplies, at cost 14,441. (16&64se) dA r other assetsi 21609 ' tni;rgase,(d6 k ase) n. m. payable 453,120 253, Increase`(decrease) In acciued payroll ' (64,234): 12, lnetease (dei tease) endue to other:funds - (122,047) lrierease (decrease) in deferred revenue (7) Increase (decrease) in deposits (16,127),., increase (decrease) tnvorkers compensation.` 1,736, Increase (decrease) to general liability 904; Increase (decrease) m compensated absences 1 114, Total "adjustments .{ 1;726,076 4,373, . Neow proa oprating acts 3028,064 (1,763, Cash }lbws from noncapital financing actin ties Operating transfers to other fundsc (489,147} (818, Nei cash provided (aged) boon financing activities: (489,147) . (818, Cash i6 4rom capital and related financing activities: Payment of:capital lease obligation_ (136; Aoquisitron,bEcapitalassets (2;722,438)- (407;, Proceeds from sale of capital 'assets 46;618 182; Net cash ptovided (used) by.capital and related financing activities` (2;675;820} Cash flows from investtng.activities: " Interest on invesfinerrts 843,795 . a) • • 056)' Net increase m cash,and cagh;equivalents 706,892 (2,942,912) 1;6;684,448 5,944,425 • 4i4" `. 400 • 902 • 238 948 • 026 725) 131) 131),... 665) . 976': 056)' Net increase m cash,and cagh;equivalents 706,892 (2,942,912) 1;6;684,448 5,944,425 $ 14,391,340 1 3,001,513 ' • $ 202,708 $ 4,097,648 $. $ 620,141 • • • • • • • • • • Notes to Financial Statements rr a 6 YY^ b. .4 •. �J}Ng �.. yMl N4A4y ��N• dn'�'rypy`rWa�'FB qwC M *'AA: d �9r^5 ty r"R -i !d p "r v'S •amFV"a. tt. , �+Y� w '4 fi: .• Mt u $�c:.h'�iklm; t€.. A°xai �1 '�e1r .an•• "� N".+* yr ,y""`s'n na �: R•L''. '�; 3.��AVZaami �.a � (!vcafrme ��•� -` -tea ,fi33ia f �. °•4,c',�' ✓t`i^tX'u Q m tFf s •�`��` ���„�'b,*,�Y.+�; .v �'V �".,�ry � .t�•�?"" tR xk'4 5".;ra} 8 d e bi b Ttn � 2 ° re » � a t � pure ucxw .vPeM9 '•, a .. t n nN F �n R'1' .yrN xax Y,ry� � ��� � �� �# a .�g �.+a srk F"n y"k � *x d*' 4�d1 �yr°'w. x;+ �t�N r.'3 dx•% x G'^ } � +� .., a# ��. �� &;_ ��x¢v.€ <4 � � �.� � r'��g ae %ter •@' -n +' �iiay � °�, €�a:. "F`+�?Cfr�x�k�^l�$i4��s� �� =" ,atyTer�a, [[,, �: � i ��• s 5 ^' `! 0 0 CITY OF NEWPORT BEACH, Notes fo.General,Purpose Financial Statements June 30, 1994 Organizations Other Than - Component Units • ` The following entities provide services within the City but are.not component units: State of California County of Orange and various school and other special districts. These entities do not meet. the "above criteria of a cornponent unit and their financial information,. is therefore not included in this report. Financial statements for these entities may be tbeir respective administrative offices. obtained at Basis,o€ Presentation = Description of Funds and Accounting System • The Ciey uses; funds and .account groups to report its financial position and resril,t of rations Governmental aGCOUnting' systems are organized and operated on a fund basis i accounting -is designed to, demonstrate legal ,compliance and .aid financial • management by aggregating transactions related to certain City functions or, activities A fund As defined as -an independent fiscal and accounting entity with a self - balancing set of ;accounts recording cash and otheinffnancial resources, together with all related liabilities -and residual equities' or balances, and changes therein, which' are segregated for the purposes of carrying out specific activities or attainiq certain objectives in accordance <' with special regulations, restrictions or limitations • The combined financial statements in this report are grouped into three broad fund categories containing seven,genenc fund typesand inici two account groups as follows; Governmental Fiend Types General -Fund The.General Fund is the general gperating fund of the City. ; The • General, Fund is'used to.accoiint for all financial'resources, except those. required to ' :.. ":. ' • CITY OF NEWPORT BEACH • Notes to General Purpose Financial Statements .Tune 30, 1994. •' Proprietary Fund Types Enterprise Funds - The Enterprise Funds are used to account for operations that provide services to the general public which are financed primarily by user charges ., or where the periodic measurement of net income is deemed: appropriate. • Internal'Service Funds - The Internal Service Funds are used to account for the claims and; judgments; compensated absences and equipment maintenance -cost -of service provided by one department of the City to other departments on a cost • reimbursement basis. Fiduciary Fund Type Agency Funds -The Agency Funds are used to account for assets held by the City as an agent for_ individuals, private organizations or other governmental'units and/or • .. other funds. ; Account Groups `. . General Fixed Assets' Account GrouR -.The General Fixed Asset Account Group is used to account for the cost of capital assets owned by the City, other than those of • the proprietary funds., General. Lone -Term Debt Account Group - The General Long -Term Debt Account •, Group is used to account for long-tern. debt of the City, except for; indebtedness related to: the proprietary fund types. Measurement Focus The accounting and financial reporting treatment applied to.a fund is determined by lts" measurement focus. All goveinmental funds are accounted for using a current financial resources measurement focus... With this measurement focus, only expendable financial resources 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 -Met financial resources. Recogrution of governmental fund type revenues represented by;non- current receivables ,. are deferred until they become current. All proprietary funds are accounted for on a.how of economic resources measurement. ' focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds arearieluded -on [he balance sheet. Furid equity (i.e., ,net economic resources) is segregated 'into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., in net economic resources. expenses) Fiduciary fund types are accounted for according to the nature of the fund. The City has - • only Agency type funds which' are.purely custodial in nature (assets equal liabilities) and, thus, do not involve measurement of results of operations. 19 CITY OF NEWPORT BEACH Notes to' Gene.ral..Purpose Financial Statements ..June 30, 1994 Basis of Accountin The modified accrual b fund -types (General SF Under the modified a become susceptible to a the current pe W.o or so r,.., re o ei n of accounting rs` followed for the governmental and fiduciary 1 Revenue, Debt Service, Capital Projects and Agency Funds).: • it basis of accounting,, revenues are :recognized when they al, that is, measurable and available to fin; anec expenditures of iereafter to be used to pay liabilities of the current period. The • . es. as'available if they are remitted within 60 days after year ad held by the State are considered susceptible to accrual. susceptible to accrual include interest income and charges for trots, fines, forfeitures and penalties* and other taxes are !not - se they are not measurable until received in cash.. Grant funds •, recorded:dS a receivable, andi grants received before the related :iia • have been met are reported as deferred, > revenues ghen the related .fund liability.-is incurred, except that principal -term oebt are recognized when due The accrual method of accounting is followed by the City's proprietary-fund types (Enterprise and It temal Service .Funds). Proprietary fund types are accounted for on an income determination or :'cost of: service ";.measurement focus. Accordingly, altassets Ad liabilities are . included in theii` respective balance sheets, and the reported fund equity (tocal:reported assets, less total reported liabilities) provides an indication of the economic net worth of the fund OQeratmg statements for proprietary fund types ('on an income determtiiauon measurement focus) report increases (revenues) and decreases (expenses) in ` determining total'; econornic net worth. Under this :determination, unb'illed service receivables are recorded at.year -end. Budgetary Control and Accounun .- The City adheres to the following general procedures in establishing the budgetary data in financial reflected. the - statements: o During April, the'City Manager subnuts io 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- Prror to:July 1, the budget is. legally adopted through passage of an<appropriatton •' resolution o, Budgets are adopted on an annuaLbasis consistent' with generally accepted . accounting principles ;for "all governmental: ?funds except the Air Quality Management District Fund (special revenue fund) and the Capital Improvement Fund (canitat nroiect fund) See Note 14 for the budget hasis to GAAP ., CITY OF NEWPORT BEACH • ..Notes to General Purpose Financial Statements June 30, 1.994 ..: o The budget is formally integrated into the accounting system and employed as a management control, device:during the,year. • ,. o The City Manager is authorized to transfer budget amounts between accounts within a fund. Transfers of ;appropriations between funds or transfers other than those'authorized above may be made, only by the authority of the - .City Council. - • The legal level of budgetary control is the fund level. -Total fund.expenditures may not exceed .total fund budgeted amounts without, approval ;from the City,, . Council. •' p Budgeted amounts used in the combined financial statements are the final adjusted amounts. Revisions made to the original expenditures budget for each fund type were as follows: Original Adjusted . Budget Revisions Bu et • General Fund $60,998,899 $10,752,808 $71,751,707 : S.peci Reyeriu& Funds 835,288 9,269,347- : 10,104,635' DO btService Fund`.' 592,285 592,285. Capital Projecffunds 3,784,831 1,364,182 5,149,013 o ' Ak fiscal.year -end, budget appropriations lapse. Incomplete capital, project budget • appropriations are re budgeted in %the following fiscal year by council action and are included to the:revisions;noted above. Protects that are not started during the budgetyear are-reevaluated in the following year. Encumbrances , Encumbrances • represent commitments related to unperformed contracts for goods and services. The City utilizes an encumbrance. system as a'management control technique to , . assist in controlling expenditures Under this system, encumbrance - 'accounting for. the'' . 0 expenditure of funds is recorded in :order to indicate outstanding commitments and is erriployed in tfie governmentaLfund'. types.; Encumbrances.outstanding : at year end are "repo. €fed as res @rpations of fund balances sipce they do. not constitute expenditures'or • liabilities. Encumbrances and their related budgets are honored in the subsequent year [o fulfill fo budget. these commitments and are presented as revisions the original adopted Cash and Cash Equivalents For purposes of Statement of Cash Flows, cash and cash equivalents are defined -tobe cash on hand, demand - lepostts and highly liquid investments with a -maturity of three months • or less from the;date of puiehase ;51or financial. statement presentation purposes, cash'and cash equivalents are shown as cash and investments and-restricted cash and investments:in .. the proprietary funds. �. 21 Lease receivable represents lease payments due on property donated to the City during • fiscal year 1993. The ]ease term on this property runs through fiscal year 2007.. As ft zevenue recggnitioa has:not`been met on this amount, a corresponding deferred revenue has been recorded inventories • Inventories are valued If which approximates niarkef; using the first,in, first -0ut method. The Ctty: follows'fIt cohsumption, method for inventory control. The costs of g6vertimental fund type inventories are •recorded as expenditures -when consumed. As • General Fixed Assets The generh fi xed:assets of the City are accounted for in a separate self- balancing .. group deseribed_as the: "General Fixed Assets Account Group." These general fixed assets are capitaiizedat, historical.. r;;t or estimated Historical cgst if actual historical cost is not .' imarket available. Donated fixed assets are valued at their estimated fair value on the date : d ©Hated. Fixed' assets acquired through lease obligations' are valued atthe- present value of -" future lease payments at the date acquired. Assets in the general fixed asset account group "one '-)Iotdepreciated:, The Qty_ has elected not to capitalize= the cost of building''or acquiring infrastructure fixed ` • assets (e-,g,, streets; bridges, curbs and gutters, storm drains sidewalks . and light systems).. . Consequently, these items are not reflected in the City'seombined'financial statements. Enterprise Funds'Fixed Assets Fixed assets of the City s Enterprise Funds are recorded at' historical cost or estimated historical cost if actual historical cost,_is not available. Contributed'fixed assets are valued * at their estimated` fair market value ",oh'the date of contri tion. Depreciation is charged -ovt r the estimated useful.lives using the straight -line method. The estimated useful lives ..: are as follows,'... .. Structures 50 to 75 years Equipment . 4 to 10 years 22.. • CITY 05 NEWPORT BEACH . Notes to General.Purpose Financial Statements June 30; 1994 • Claims and Judgments • The City accounts for material claims and judgments when it is probable that the liability claim has been inCurredand. the amount ofahe loss can be reasonably estimated. The City records the estimated loss liabilities in the Internal Service Fund. Included therein are •' claims incurred but not reported, which consists of (a) known loss events. expected: to be , presented as claims later, (b) unknown loss events that are expected;to become claims, and (c} expected future development on claim already" reported. This -is based :upon historical actual . results that -lave established areliable pattern. Small dollar claims-and Judgments are ecorded as expenditures when paid. ' Cauital'Leases The City accounts for lease = purchase ;agreements as capital leases when title transfers to ' the City.<at the end of the,lease term or the lease contains a bargain purchase option Therefore the capital'leases, are recorded .at the present value of the future minimum lease,. " payments as of the'date of their. inception. Capital leases used for, fmancmg.,general fixed ,•..:: assets are recorded -both as a capital expenditure and other financing source.',Capltal lease payments are accounted for;in a manner consistent with general,debtobligations. `'.Pro rtv.Taxes. `' The assess ment „levy and collection .of property taxes are: the responsibility of,the County • of Orange The City records property taxes as revenue when received froth 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; followtng propert .'tax calendar Lien date': `' -. - March I Levy date July 1. Due dates November,- -. lst installment . March I' - 2nd installment Collection dates . December10 - I st installment • April 1,0 72nd installment ' '• . Compensated.Absences It- is-the City's policy to pertnrt employees to accumulate earned but unused vacation and' ' _ • limited. amounts of earned but unused -sick leave benefits'> which will be paid_to employees - ., upon.separation from Cify service. _ Beginning in fiscal year. the City adopted a •': general leave.:plan to replace the, traditional:” vacation and sick leave plan.. The general leave for above which the plan permits a tnaxtmuin of three year's. accrual every employee; excess is paid out as current•compensation. All employees hired prior to January l; .1990, were given the option of remaining..in the traditional vacation and sick leave plan or .. enrolling in. the general leave plan. All employees hired on or after January, 1, 1990; are automatically..enrolled in the general leave. plan. Compensated absences are accrued in the 23 . • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1994 ' Internal Service Fund when employee services have been rendered and when it becomes •,; probable. that'Ihe City will. compensate the employees ,fo[.Iienefits through paid time off or cash payments at.termination or retirement. Benefits thk have;been earned but are not yet .. available for use because.employees have not met certain conditions are accrued to the extent it is probal le"that the employees will meet the conditions for compensation in the . future, Deferf d: venue' *the Defer'ted revenues are those where.asset recognition has been met, but revenue recognition criteria has notleezf -met. ;` Reclassifications ;Certain reclassrficatrons have been made to prior years financial data to conform with the ;current year s presentatrom. ; N emorandum Only Cotal Columns• . Total columns oiahe combined statements are captigned "Memorandum Only' to in that they are presented only`to facilitate financial analysis. Data in these columns do not " present, fin an'cral positron; results of operations, or,cash flows in conformity with • generally accepted accounting principles ;.. Neither <is such data comparable to a consolidatrott ehirunations have not been made in the aggregation of this data . .nd • 24 _ . l MY OF NEWPORT BEACH • Notes to General Purpose Financial Statements June 30, 1994 . 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 deposiis which are fully insured .up to - • ,, $100,000 by fedef depository insurance. i uc i credit As. of June 30 osiis at year end are categorized.below, to give_ an indication of the level of • med by the City "in three categories as follows: 1 - Insured or collateralized -with securities, held by the entity or by its • the City's name. 2 - Collateralized 'with = securities held bythe pledging financial institutiori s -. artment or.agent in the:City's name. 3-,::'U: fic6flateralized, 1994 .the City's deposit balaices were "as follows: . Category Bank " Carrying "' • 1 2 3 Balance Amount $4,,795 • posits $20000 $834,992" .$1,034,992 (515,869) invesEment 57,423 57:423 57.423 its ` $257,423 $834,992 $1 092,415 $453,65 1) : its, that are represented by specific identifiable investment securities aiaze credit risk bythree categories as follows: ' 1 - Insured gr registered, or securities held by the City or its agent in the - me. L-2 -" Uninsured and unregistered, with securities held by the counterparty's artment or agent in the City's name. . . Category 3 - :Uninsured and uniegistered;with securities held by the counterparty, or by its trust department or agent but not in the City's name. - • CITY OF.NEWPORT BEACH Notes to General Purpose Financial Statements • :.. June 30;.1994 •. The City's investments at.June 30.; 1994, are summarized below for the credit risk, carrying amounts, and market values Cafegob0 `3 Carrying Market 1 2 Amount Value Pooled investments: • Repurchase agreement $2,050,000 32,00,606. $2,050,000 U.S. Treasury Bills $1,498;848 1,498,848 1,498,598 U.S. Treasury Notes" 8,757;409 3,492,422 12,249,831 12,043 ;285 "Federal Home Loan Bank 1305,424. 1,501,875 2,807,299 2332;550 "•' Federal Farm Credit Bank ", 498,895 498,895 498;350 Federal National Mortgage • Association' 2,942,931 1,003,300 3,946,231 3,913,86§ " Strident Loan Marketing " Association > 5001000 500,000 455,625 .. Medium Ternt:Note 780 ,612. 780612 722,498 Corporate obligations 3,413;232 1,032,490 4,445,722 4,372,229 State .of Cahfoimta • Local Agency ` Investment Fund* 3,098,542 3,098;542 Orange County 'Pooled Fund*.... 11,169,173 11,169;173 • Los Angeles County Pooled Fund* 222,565 222;565 Total pooled .- rnYestrnents $18 698,456 $10;078 982 $: $43,267,71$ $42 797280 v . Inestments with fiscal agents: Investment funds $ $ `- $764,091 $ : 764,091 $ 7-K-001", . • °Deferred compensation fund: PARS investments* $543,606 $543,606 . '• Guaranteed;contract annuities* 343;138 343,138 . IvIUtual funds* 17,838.048.47,M&048 • Total deferred'. - compensation mvestttients $L8,724,792 $18,724;792, ..: * Not subject to categorization At no time during the fiscal "year did the City borrow funds through the use of reverse - .` re purchase agreements.. 27 . • CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June. 30, 1994 • (3). . Fixed Assets . .,-A summary of the changes ,n general fixed assets are as.follows • Balance Balance July 1, 1993 Additions Deletions June 30, 1994 .; Land $23,888,566 185,500. Equipment 9;366,202 $573,.158 9;939,360 Structures 36,579,956 130473 36,710,429 • Automotive, 9.24444220 9.214,220 $79,048 944 .' $703,631 $9,299,720. $70,452,855 •. "Durrng the current year; general; fixed assets: (Automotive) used for this activity in the 4ieneral Fund were <transferted from the general fixed assets account group (at cost) to the • Equipment Internal Serq[ce Fund. -(at fair market value)...:' A Summary of the changes to the proprietary fund type fixed assets are as follows: •. • Balance July 1 1993 Additions Deletions. Balance ' June 30, 1994 Enterprise Funds Land ', $3.056 613 :: $3;056,613 .. Structures .. 64,462,958:.. $1;60,1;202::, $129,00 4 65,935,160 Equipment 1,885,061 82;058 1419,656 547,463 Construction in progress ' 1.241;886 1,241,88 6 69,404,2 2,925;146 1;548,656. 63 70,781,122 • Less accumulated - :) (1460.989) 943:264 --depreciation -,: (41 133.549 %(4 • Net $28,271,083 :> $1,464,151 $605 392 $29,129 848. Intemal Service-Funds: Equipment $51125,454 $144,017. $4;981,437 . Less accumulated .. depreciation. (1.149.618) (1.149.618) . Net `. $ - $3,975;836 $144,01.7 $3,831,819 28 • CITY.OF NEWPORT BEACH Notes. to General Purpose Financial Statements June 30, 1994 Capitalized Leases Office Equipment Leases In: the "current and prLOr fiscal years, the City had entered into several lease - purchase agreements as lessee for Financing the acquisition of a geo base information and mappin g system,and;upgrades. of equipment and software to the financial::.: . management and d`a €a processing systems. Theaerms•of "the leases range from three to five years and are"payable monthly. The, .interest rates on these obligations range from 5 %"to. 9% T,hege "lease agreements qualify as capital leases for accounting purposes as the title : transfers;at the end of the lease term.or the lease contains a bargain purchase option. All assets acquired with capital leases total $1,701;682 and are included in, the General.Fixed ASSet Account Group totaling $1,701,682.. " Annual Amortization Reouirements of Long >Term Debt The annual requrements.to:a[riottize, outstanding debt included in the General Long- Tettri Debf:Account Group as `of June30;;i994, areas follows:: Year Ending Certificates of No Wan. Capitalized June 30 Participation.` . Payable Payabfe ' Leases. Total 1995 $589485' $236,372 $266437 $313,336 $1:405,630 t 199'6 ..5 385 , 236372 165,931. 993 68$ 1997 587 685 236,372 36,193 860 250 1.99.8 588,685..: 236,372 10,667 835,724 ,, .' •. 1994. 584,085 236,372 820 • The, reafter 11 737 450 63. 50.423 15.387 873 .. 14 678,775. ` 4,832,283 '266,437 526,127 20,303 622 Less amount repte • senting mteresf (7 308.775) '€1.716.866 fZ1.437�. 37 167 ., {9.0842451 - $7,370,000 ":: - $3,115,417 $245,000 $488,960 $11;219,377: • Proms tary Fund %an€ -T6rm. Debt t Internal Service Fund A m.long intemal,seryiee funds is follows • summary of ctipges term debt of the as . . Balance Balance 7uly 1, 1993: Additions .Retirements Jane '30, 1994 • Claims and Judgments ." payable $1x,122,000 $7,060,042 $4,418,902 `. $12,763,140. • Compensated absences „ '5,9782278 1,606;656 491,708 7093,226 Capital leases 620:14] 136.367 483.774 16,100,278 $9,286,839 $5,046,977 20,340,140 •, Less current portion -" 1,950,00 0 -.. 2.712.275 " Total long -term $I4,15Q278 $17,627,865 • 30::.., • CITY OF NEWPORT BEACH .. Notes to General Purpose Financial Statements June 30, 1994. . • Claims and Judgments The City is self, insured as described in note 6. These amounts represent estimates of amounts to be paid-for reported general liability, workers' compensation claims; an& incurred -but not =yet reported claims based upon past experience, modified for amount • trends and information. While the ultimate amount of losses incurred through June 30, 1994 is - dependent on future developments, based upon information from the City's . attorneys the City's claims . administrators and others involved with the adpunistration of the programs, City management.believes the accrual is adequate to cover such losses. The estimated, liability at June 3d, 1994, amounted to $12,763,140. Compensated Absences - .The City's pohcieS relating'to compensated. absences are described in note 1:` This liability, .. . • to be paid in future years.from available and future, resources, at June. 30, 1994, As $7,093;226 Capitalized Leases ,. Rolling Stock Leases Equipment Maintenance Internal Service Fund: In the current • fiscal yeaz the City entered imw two °lease-purchase agreements as lessee for financing the acquisition of afire track and an air sweeper. The term of each lease is five years and each is 'payable annually. The :interest - ,rate for each lease is 4.98%.: The lease agreements • qualify as capital Leases for accounting purposes as the Title transfers, at the end of the lease term or the lease: eontams :?a <bargain.purchaseoptiom The assets acquired were classified ." as equtpnentin the Equipment Mairitenance.Internal Service Fundrtotaling,$62Q,141: •:, ; Annual Amortization Requtiements of Proprietary Fund Capitalized Lease Obli atg ions • The annual requirements to.amortg6 outstanding capitalized lease obligations included in th "e;Proprietary Fund as of June A1994, are as follows: Year Ending Capitalized June 30 Leases 1995 $136,367 1996 1361367 1997 ,:; . 136,367 • 1998 136. 3 545.467 . Less: amount repie ".. sentmg,interest 6� 1.6931 " $483.774 • 31 fiseal years (See note 4 and '19). (7) Deferred` Comiimsation 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 tttoti;o • to defer a poftheir salary until future.:years. The deferred compensation is -not .:available to employees until teiznination, 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 of 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 participanf. • 32 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1994 (5) Special Assessment Districts Bonds •. . Bonds outstanding it Tune 30 1994 for cach district under the Bond Acts of 1911 and 1915 " are as follows Bonds Original Outstanding Ass @ssment - District + Issue'' Jurie 30,'1994 ." No. 56 China Cove:, $145,254' $10,570 No. 57 Corona.Highlands. 938,598. 625,732 . No. 58 Can Village 107,746 85,000 Na.:59`McFaddenSgaare' 530,'609''„ 485,000; No '60 Say Avenue ": 236,533 215,000 •' lVo:fil East gay Front 127,299 115,000 ,.' No. 62 Hazel'Drive 335,210 305,000 No 65 Rocky Point . 53,125 49,000 • No 63 Newport"Island "536,531 515,000` No 66 fast Newport, 171,911 171,911 Although the City collet is and disburses funds for these districts, 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 tfi ereforc the!bonded'in debtedness is not shown in the financial statements of the`City, (6); Self Insurance Program General Liability and Workers' Compensation At June 30, 1:994, the City was self insured for general and workers' compensation liability claims As of April 1 1986, th me e aty,beca self insuredfor general liability claims against 'insurance the City. For general liability claims prior to April 1, 1986 the City had coverage.— far amounts in excess of $500,000 to`$20,000;000. At June 3Q, 1994, $12;763,140 has been , .. accrued for general= liability and workers' compensation claims in the Internal Service Fund;: and is expected to be paid from available and future financial resources over the next five, fiseal years (See note 4 and '19). (7) Deferred` Comiimsation 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 tttoti;o • to defer a poftheir salary until future.:years. The deferred compensation is -not .:available to employees until teiznination, 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 of 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 participanf. • 32 •. " CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1.994 Funding Status and Pro Less . The amount shown below,, as the ''pension benefit obligaion.',is a standardized measure of ' the present value of pension benefits, adjusted for the effects of step -rate benefits,.., .' estimated to be payable.4hA6 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 • compari5ons'"ainong .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 June0 1994 (based on'3une 3Q,'1993:data). Significant actuarial assumptions used rn Cfie valuattohAncludejaj'a °race "return on the investment of. present and future assets of 8.75% a year compounded annually, (b) projected,salary increases of 4:50% a year compounded annually; attrbutable..to inflation, (c) additional projected salary increases of—, 2.5010 x'yeaz for: miscellaneous employees and 2.75 %o _ a year for safety employees, . " attributable to seniority /merit, and..(d)`no post- retirementbenefit °increases. `, The, total unfunded pension be'nefitobligation "applicable "to:the City employees was •. ($5,492;868) at June 36 1994 (based on June 30, 1993 data) as follows: Pension Benefit liligation- Retirees and beneficiaries currently receiving benefits and terrmnated employees not yet receiving benefits• $45,243,537 • Current Employees Accumulated employee contributions including allocated' investment earnings 35,061,918 Employer - financed vested 39,761,783 Employer - financed. non vested< 1.253.203 Total Pension Benefit Obligation 121,320,441 Net Asikts Available for Benefits at cost • (Market Value is $150,783,320) 126,813.309 A 'sets in excess-of Pension Benefit'Obligation $ 5;492,868 • In the prior year the City reported an unfunded pension benefit obligation of $3,270,089. At June 30 1994 the CIt- had accumulated assets in excess of.pension benefit obligation. Of the total.change in,the pension benefit obligation from last year, $3,004,528 resulted from changes in actuarial assumptions. • 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 which are expected to be earned in the 34 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1994 • Plan Descrimioti - Defined Contribution Plan i -': As of January 1,:1992 the City entered into a defined contribution.plan with Public Agency Retirement Systetn ( PARS' for all of its part= time.employees. Ina defined contribution plan; benefits depend solely on amounts contributed to the plan plus investment earnings. . All part -time employees are: eligible to participate from the date of employment. Federal .. Ci legislation ,:re4uires.contributions of at least 7.5% to a retirement plan, and ty:Council resolved`, to match-the- employees'. contributions of 3.75 % . The City's:' contributions for eachemo oyee (and interest earned bythe accounts) are fully vested immediately • For the year ended June 30, "1994, the ,City's covered payroll for employees participating in the plan was, $1,946,037,• The City: made employer, contributions bf $72,977 (3.75/0 of • currenNeovered- _payroll).. Assets :of the plan totaling $543,606 at June; 30 1994, are repot3ed as deposifs hi the:lJeferred Compensation Agency Fund. As of June 30;'1994, : there were 264 em_ployees:participating in the plan. Early Rehrementl-.roeram City iented an Program •' On June 30 1993 the' uripler and offered Early Retirement to certain employees wii retirement . would' lead to a permanent vacancy within the'City organization Tlie Early Retirement Program provides participating employees with a .: supplement to their normal:PERS retiremenC,lienefits by an additional payment from the tatty As of June 30, 1994; twenty -four employees opted to participate in the Early Rettterrient Program which. :was budgeted and! funded as a one, time cost;ao the City of $1 285 1:00 Eltgttle retirees -were given the option of,receiving a direct lump sum payment or #he' pure hageof a deferred "annuity: (1Q) st Emplovment Health Care Benefits -M established by -a City Council approved Memorandum of Understanding between the City and its employees, the City ' "provides" post employment: health care benefits • . Employees who retire frotn.the City with seven years of'service' and participate in PERS are eligible to receive health, care benefits covering themselves and 'any: qualified family menib4s from the City's insurance carrier; - Health Net. The. City pays 50% of all premiun s charged under the, selected plan while the active and retired employees, split the remaining premium at ..a rate of 25% each. T, his program is -funded on a:pay =as- you -go basis. The Citys expenditures £or post - employment health -care benefits for fiscal years • 1993 -94 and 1992 =93 were$ 267,191` and $ 220,502 respectively. As of Tune 30, 1994, 145 . participants were eltgtbletoreceive benefits 36 I • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30;,1994 Designations. established as of June 30, 1994 are as follows: Special General Revenue Fund _ Funds Total Contingencies' $4,057,668 $4057,668 Special Projects. 4,547.127 $12:882.015...17.429.142 1otalDesignated $8,604,795 $12,882,015.$21,486,810 • (14} ,Special Revenue and Capital Project Fund Budget to. Actual Schedule �. During fiscal yeat 1994;, the Air 'Quality. Management Fund was reclassified from`an ;. agency,:: fund; where "no budgets are adopted; to a special revenue. fund: No budget was • adopted for the? ;Capital> Improvement, capital projects because there was 66 planned. activity for tbis`fund during fiscal, year 1994. Therefore, the activities of these funds are not in m ilia Combined Statement of Revenues, .Expenditures and Changes in Fund • Balance Budget and. Actual. In order to reconcile the Combined Statement of Revenues Expenditures, and Changes- rn Fund Balance (GAAP basis), the fund balance for the above mentioned funds should be.included as follows: Special Capital Revenue Fund Project Fund Fund:balance on a budgetary basis= $13,441,228 ($301,050) • Add•reconciling items Air Quality Management District 2031366 • Capital Improvement Fund 1.100.000 Fund balance on a GAAP basis $13,644,594 $ 798,950 • (15) Segtgnt Information foi• Enterprise Activities • There'a 6.four services provided by the City which are financed primarily by.user charges - parking'water,services, sewer services and a mobilethome facility. These services are . . accounted for ip:!separate enterprise funds. ' • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1994 . • . fund did not'have fund balance at the close of fiscal year 1993, it was not included in the • schedule below. The following is a summary of the changes to beginning fund balances: =.. Amount.. • Previously; - Restated Reported Adjustments Amounts General Fund Park_:and,Recreation $1,655,265 ,.. Library 83,225 Parking Meter 1964 685 General Fund $8,076,746 $3,703,175 $11 773 921 Special Revenue Funds Park and,Recr6- ($1,655,265) . Library (83,225) Parking Meter : (1,964,685) • Air Quality 134,458 .' Special ReveaueFunds $15 248,354 ($3,568 7.17) ; $11,679,637 In rio. ears, air: ualit AB2766 activity was recorded in the Special De osit Fund P Y q Y(` ) Y P P • " Agency Fund :The prtor..year balances and activity have been revised to .reflect a reclassif, cation to the tlir Quality Special Revenue Fund. . • Y {i9) Residual EgLrrty Transfer ;, As of July 1`, 1993, the City`established an Equipment Internal'Service Fund to account for `, • the mautenanpe .and replacement cost of the City's rolling stock' and other heavy ' equipment The, assets y. ued at $209,461 and'$322,939_were transferred from the City's •` Water and Wastewateienterprise funds, respectively, to the new Equipment Fund totaling $532,400 , • (20) �µbseauent Events ` On July;,] 1994, the City obtained excess public liability form liability insurance coverage '_ • of $IS# �tIlion per occurrence with -a self insured retention (SIR) limit of $1 triillion per occurrence This coverage provides for personal injury, property damage and public entity errors and ormssions. On October 15 1994,.the City issued $4;300;000 pnnctpal ^amount' of tax revenue' anticipation notes `as financing tool,to supplement the City's pooled cash and investments • used in funding the 1994 95 General Fund current, capital and debt service expenditures. - On ;September 13, 1:994, the City. issued $17,100;000 face amount of water revenue bonds to finance the constniction.and acquisition of water storage and transmission facilities and certain other.improvements to the watet system: 40 y'S � uN r ' M General Fund �4 in t C • s �- Y.. ,g sy�t�£ 5 F -tT Y n s 4 Sy roawv, y'S � uN r ' M General Fund THE GENERAL FUND The General Fund is used to accountforfiscal resources which are: • • • 41 CITY OF NEWPORT BEACH •' Comparative Balance Sheets - General Fund June. 30', 1994 1994 1993 Assets ' Cash and investments $ 01550,506 $ 11,878,744 Accounts receivable and accrued revenues 1 540,425 1;376,449 . Due from othergoyemments 1,699;979: 1,578,064 • Due from other funds 2,164,438 2,378974 Deposits with other agencies 428,500 Inventories of material and supplies, of cost -, '157,054 365 185 Other assets 13,321:` 49;127 Total Assets $ 1 5,125,723 $ 17;853,043 • Liabilities and Fund Balance Liabilities Accounts payable and accrued liabilities $ 2,013,424 $ 1,278,339 •... Accrued payroll: 1,067,316 2,804,174, , Deferred revenue 297,336 49091 :• Due to others 46;749 . Deposits 1,816,829' 1;455,369 '.. Total Liabilities .- 5194,905 6,079122 Fund Balance:: . .. Reserved: Reserved for encumbrances 1,168,969 1728,517 Reserved for inventories, 157;054. 385,185 Unreserved:. :.. Designated for special projects >' 4,547,127 3,555,604' . Designated for contingencies 4 057,668 6 112 ;374 Destgnated for appropriations ::12,2411 Total Fund'Balance 9 930,818: 11,773,921 Total Liabilities and Fund Balance $ 15,125,723 $ 17,853,043 41 Total Other Financing- Sources(Uses) CITY OF NEWPORT BEACH, 6,618243 (569,780) 927,897 • Statement of Revenues, Expenditures • and Changes in Fund Balance - Budget and Actual General Fund and Other Flnancing.Sourcea For the Year Ended June 30, 1994 Over,(Under) Expendi ores 1994 (5;843,304) 1993 (7,228,409) • Fund Balance, July 1, as restated 11,773,921 Variance .19,002,330 • Fund Balance, June 30 $ 6,130,617 $ 9,930,818 $ 3;800,201 Favorable �.. ' Budget Aral (Unfavorable) Actual Revenues: AdIk • Taxes $ 38,387,832 $ :;39,809139.1 .$ 1,421,307 . $ 38,471,775 Ucenses, fees and permits Intergovernmentalrevenue 1,004,703 3,365,147 881,774' 3,980,889 (122,929) 615742 879,458 4,382,348 • C. hargesforserviees 6,256,719 4,970,181' (1;28¢,538) 41587,152 Fines fodWres and pen Reve tue from use of 2,918,079 2,527,815_ (390,264). • money and p operty 6,055,349 4,297,327 (1;758;022) 5,189,i47 ; Contributions 642155' 290,396 534,483, 1,040,844. (107,672) 750,448 230 7103;:, 321,452 Ytther Total Revenues, 58,930,380 58,042,452' (877,928)`s 56,308,147 • Expenditures: .. Current General govemme;d.: 4,844,985 4'607' 009 r 37,956 4,359,857 • Pubhesefety 32,016,505 32,158,176' (139,671) 30,706;655 Public works 14 919"198 15,018,898 (99,700) 12,779,215 ' Commudlly devebpmenf ' 2 885,465 2,836,241•, '. ! 49,224 2,996,534 • Qoromuntysenrtces'; 5;743,668 5,457,065 286,603, 8,102,779 C80al expenditures 11 207 368 6 093 891', 5,074,345 Debt Sainte . Principal retirement . - 290,781 200 781, 379,521 Interest and fiscal charges 43 737 43,73 65,547 Total Expenddurea. 71,751,707 66503,798` 5,247,909. 64,464,453 Excess (Deficiency) of Revenues Over (Under) Ei tuies , (12,831,327) 461 34&) 4 369,981 (8,156;306) • pend (8 Other Fin ancing Sources`(Uses). OperarM* ansfers to ., 13;1 1 8 2,39. , , ,027,315 Operating- transtersout (7,192,929) (357;966p 6,834;963 (7;284,085) " Proceeds fromlong-termdebt 1,199,060 116,682 116,682 91,983 Proceeds from saleoYassets 1,027,130., (171,930) 92;684. ... Total Other Financing- Sources(Uses) 7;188;023 6,618243 (569,780) 927,897 • . Excess (Deficiency) of Revenues and Other Flnancing.Sourcea •, Over,(Under) Expendi ores and Other Financing Uses (5;843,304) (1,843,103) 3,800,201 (7,228,409) • Fund Balance, July 1, as restated 11,773,921 1,1,773,921 .19,002,330 Fund Balance, June 30 $ 6,130,617 $ 9,930,818 $ 3;800,201 $ 11,773,921 �.. ' 42 AdIk • • • • • • • • • • • • • • • Special Revenue Funds 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 State Gas including street exclusively for The The Contr a 'encies or Tax Fund accounts for all State Gas Tax related revenues and expenditures, -epair, construction, and. maintenance.. State law iequires that these funds be used maintenance of the street and highway system: ghway Financing Fund is used to account for funds received from the Orange rtation Commission for the construction and maintenance of arterial highways. all ved from tht this fund are Ackerman Dona from the Ackern` California, Irvine. i Forfeiture Fund was established to account for all revenues resulting, from in conjunction with criminal cases (primarily drug trafficking). It`:is the uch funds shall 6e used for enhancement of law enforcement programs. rged Land Fuud is used to account for all revenues and expenditures related` Qity's.tidelands including beaches and'.marinas. Fund. is used: to ac. count for revenues received from other government velopers and expended for specific street or highway construction; projects. r Transportation :Fund is used to account for fair share revenues collected restricted' for capital improvement projects meeting the circulation element Plan. . e Tax.: Fund: is 'used to account for revenues received from builders: or tg or reniodehng;projecis within the City.. Expenditures from this fundrarei Y J', LLLll0.�LVJ, tlUlf.J,GV0.VLLVJj, VI 1VV1L0.L1Vll{Ll 6VL1Y LLLGJ. rltoi Fund. is used to account for the revenues and expenditures of f e County . Combined Transportation Funding Program. Expendi elusively for transportation related:;purposes:;: 9pment Block Grant .Fund is used to account for revenues to the City's: Community Davelopment-Block Grant program. These :funds e Federal Department of Housing and Urban Development and must be on programs for low or moderate income iadividuals/families Fund is used to account for the receiptand`disbursement of funds received Trust... These funds are' spill between the City and -the University of e Ctty's:portion.must be used for library and scholarship purposes. Aar Quality Management District Fund Coast Air Quality Management Districtd • • • • • • • • • • • • tt for revenues received from the South use of reducing air pollution. • • • CITY OF NEWPORT BEACH Sheet • Combining Balance All Special Revenue Funds June 30, 1994 Arterial Federal Tide and State Highway Adopted Submerged • Gas Taz:: Financing - : Forfeiture Land : Assets Cash and investments $ "3,469,977 $ 439,501 78,328 Accounts receivable • and accrued revemies $ . 3,529 227,929 . Lease receivable • Due from other governments 5,513 Other assets 56,957 • TotafAssets $.3469,977' $ 3,529 $',445,014 $ 363,214, Liabilities and Fund Balances • Liabilhies Aocountt payable and and accrued, liatnhtles ` $ .172571 $,'. 2,634', $ 36,276 • Accrued payroll 902' Due i"o other,. funds $ 54;883 Deferred revenue 156,718 Deposits 169,320 • Total Liabilities 172,571 54,883 363,214 Fund Batances: Reserved forencumbrances 126,412 4,804" Unreserved Designated for special projects,. 3,170,904, 437,576 Undesignated (51, 354) • -Total Fund Balances ` . 3,297,406 (51,354) 442,380: = ' .- Total. Liabilities and Fund Balances $ 3,469,977 $ 3,529 $`445,014 $ 363,214 ,,. 44 ' Circulation end. Building Excise Combined Community Development Contributions _ Transportation Tax Transportation . "" Block.Grant" $ 746,493: $ 7,248,298 $ 48,315 -.: $ 148,420: $- 175,088 • •. 627,3D.4' 1,143, 329 117,352 • $ 1,373797 $ 7,248;296 $.48,315 $ 1,291,749 $ 292;420 • Aah •,... $ 37,191 $ 1$9,470 $ 292,420 • 37,191 189,470 292,420 $ 90,611 ,11,124. 580,982 $ 1,373,797 .•' ,7,1-57A§5:* 521;29T 1.373,797 7.248,298 :11,124 1,102,279 • $ 1,373,797 $ 7,248;298 :$ 48,315 `` $ 1,291,749 $ 292,420 (Continued) " 45 CITY OF NEWPORT BEACH Combining Balance, Sheet • All Special Revenue Funds (Continued) June 30, 1994 Air Quality Ackerman Management Totals Donation-, ,Distnct . 1994 1993 ' $ 203,366 Assets $:'14,614;104 - Cash and, investments $ 17;300 $"183,945 $,12,555,643 A 12,048,594 liabilities and Fund Balances Accounts receivable and accrued revenges 19,421 ,: ,, 250,879 304,748 • Lease receivable' 1,022,417 1,022;417 1042,167 Due from ottIO', emments Accounts payable and' 1,893;498 1,216 ,287 • Other asset§ .56,957 2,310 •'. TotalAsssts, $ 1,039,717 �—,�— $ 203,366 ; $ 15,779,394 $:'14,614;104 - • ' liabilities and Fund Balances .. Liabilities Accounts payable and' and accrued liabnities $ 730,562` $ 689,969 • Adcnred <payrotf 902 31059 Due to other funds 54,883 147,372 Defe Ted reve'nue S; 1 022 41;7 1,179;133 1,934,031 Deposds ` 169;320 160,036 • Total Liabilibes 1 022,41.7 2,134;800 2,934,467 Fund Balances: • Reserved 6r. encumbrances 813;933 346,278 unreserved • Designated for special projects 17,300. , $ 203,366 ,. t2,882 015 11,178,624 undesignated (51,354) 1S4,735 Total Fund Balances : '17,300 203,366. 13,644;594 11,679,637 Total Liabilities and .: .Fund Balances- $ 1,039,11;7 $ 203,366 $ 15,779,394 $ 14,614,104 • ' 46 CITY OF NEWPORT BEACH Combining • Statement of Revenues, Expenditures and Changes in Fund Balances All Special Revenue Funds For the Year Ended June 30. 1994 Arterial Federal State Highway Adopted •, GasTaz ; Financing Forfeiture Revenues • : Licenses, fees and permits- Intergovernmental revenue' $1.226,069 Charges for services ,.. Fines, forfeitures and penalties $ 178,379 Revenue front `use of money • and property 1751761 25,295 Contnbutrons Other;: •; Total Revenues 1 401,830'- 203 674 " Expenditures- Current .. Public safety, m Comundydevelopment Commundy servrces •'• Capital expenditures 692 432 ; ' Debt service Pnncrpat fetirement . • . InterestC :and fiscal charges Total Expenditures' _ 69 ?,432: 174,162> ...,_ Excess of Revenues Over Expenditures 709,398 ' 29,512 • _ Other Financng Uses. Operating transfers out • Excess (DeftCFanc of Revenues.. Y) Over_(Under) Expendtures • and Other Finandng Uses 709,398 29,$12, Fund:Balances, July 1, as restated 2 .588008 $ (51 A 54) 41? 868 Fund Balances (defidt), June 30 $ 3,297,406 $ (51,354) $ 442,380 48' • Tide and . Submerged Circulation and Building Excise Combined Community Development Land Contributions. Transportation. Tax Transportation Block Grant $ 971,494 $ .95;587 • 110,421 $ 454,978 $ 2 330,565 $ 451;395 • 3,672,21.8. $ 187,281 ,? 22,317 34,500 • '" 27:831. 31,911 298,378 " 2,;634 , 4,7 `964 486, 485,859 117,904 2,367,699 451,395 • 451 j396 . • 401,787. 348,018 222;343' 135,496 49,990 1,337,051 ,. 78,763 159,609 .. 984;177. 222',343 135, 496: 49, 990 1, 337, 051. 451, 395 • 3,797,787 264,546" 350,163 >' 67,914 1,030;848 • (4,078,192) (400,215) • (280,405) 284,546 350,163` (332,301) 1,030648 ,`• : 173,217 1,109,251 '6;898,133 L L 343,425 71,831. •. $- ' $ 1,373,797. $ 7,248,296 $ 11,124 $ 1,102,279. $ (Continued) " 49 CITY OF NEWPORT BEACH Combining Statement of Revenues; Expenditures and Changes in Fund Balances All Special Revenue Funds (Continued) For-the Year Ended June, 30, 1994 Air Quality Ackerman Management Totals Donation District 1994 1993 .Revenues: Licenses, fees and permits' $ 1,067,061 $ 915,780 • • Intergovernmental revenue $ 75,278 4,648,706 3,057,448 Over Expenditures 17,300 Charges for services 6,338 176 4,360;990 •. .116,048 • Fines, forfeitunesarid penalties 178,379;. 336,857 .. .. - Revenue frci`rri use of money • . Excess (Oeiieiancy) of Revenues: and property " Over (Under) Expenditures - :8,906 4,126,278 4,189;33$: Contributions $ 185,000 1,857,769 517 923 216,630 Fund Balances,.July 1, as restated Other' 11,879,837 11,045,537" 27,831 2810, • Total Revenues 185,000 84,184 10,566198 8,834,911 r �. Expenditures. Current ik Public safety .. 174,162 502,934 • .. Community devetopmerit 1033800 :15,276 570,471 639;558 Commumty services 511.190T. 453,687 417,979 • Capital expenditures 2,783,330 2,644,850 . Deln Service '` .. . ,.. . Pnnupai retirement 12 000 t18 763 72,106 •. Irtterest -and fiscal charges 159,609 195,894 Total Expenditures, "," 187,708 t5 276 4,230 022 ;`' 41473;921 • Excess of Revenues ''< Over Expenditures 17,300 88 908 6,338 176 4,360;990 •. Other Finandng i pes: Operating transfers out - (4,478,407) ' (3,728';890] • . Excess (Oeiieiancy) of Revenues: Over (Under) Expenditures - and Other Finandng Uses 17,300 68,008' 1,857,769 634,100 • Fund Balances,.July 1, as restated 134 458 11,879,837 11,045,537" Fund.8alances (deficit), June 30 $ 17,300 $ 203,366 $ 13,644,594 $ 11,679,637 . r 1 Capdal'•expenddums 2 506 160. 692 432 1 813,728 -variance Eiccess (Detiaency) Favorable of Revenues Over • Budget '- Actual (Unfavorable) Actual 709 398 1 869,608 565 729 • • Revenues; Fund Balance, July :1 2'68.8.008 21158.81068 2,022,279 Intergovernmental revenue $ -.1,214,450 $ 1,226,089 $, 11,619 $ 1127,006 FundBatinci ,June 30 Revenue from use of $ 3,297,406 $'_.1,869,806 $,2,588,008 .1 • moneyarld property = 131,500 175,761 44,281. 1'37,41.7 ' • Total Revenues 1,345,95 1,401,830 55,88.0 1;264,423 Expenditures • Capdal'•expenddums 2 506 160. 692 432 1 813,728 698 694 Eiccess (Detiaency) of Revenues Over .(Under) Expenditures . (1 160 21.0). "' 709 398 1 869,608 565 729 • Fund Balance, July :1 2'68.8.008 21158.81068 2,022,279 ,.;. FundBatinci ,June 30 $ x427,798 $ 3,297,406 $'_.1,869,806 $,2,588,008 .. CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual • Arterial Highway Financing Special Revenue Fund, For the YearEnded, June 30, 1994 1994 :1993. Variance Favorable Budget r Actual;:. (Unfavorable) Actual •Revenues: Intergovemmentalreveoue.. $.150,000 $ (150;000) $ 157;550 • `. Expenditures. : Capital expenditures - 55,6,00 55;600 .1 55,083 r • Excess of Revenues Over Expenditures . 94,400 (94,400) 2,467 • .. Fund Balance, July 1 (51,354). :':$ (51,354) (53,821) ... Fund Balance (deficit) June 30 $ 43,046 $ (51,354) $ (94,400) $ (51 5s CITY OF NEWPORT BEACH .: Statement of Revenues, Expenditures and Changes in.Fund Balance . Budget and Actual „ Federal Adopted Forfeiture Fund • For the..Year Ended June.30, 1994 • 1'994 1993 Variance Favorabti Budget ` Actual (Unfavorable) Actual Revenues: Fines, forfeitures and penalties $ 350,000 $ 178,379 $ . (171,621) $. 336,851. Revenue from use of money and "property 25,295 25,295 29,900 Total Revenues., 350,000" 263674 (146,326) 366,757 Expenditures, Current • Public safety 166,194 174,162 (1,968) 502,934 Capital expenditures 125,986 Towexpenddures 166194. 174,162 (7,968) 628,920 no • Excess (Deficiency) , of Revenues Over (Under) Expendit ures t83 808 29,6i2 ",:,(154,294 (262163), ;; • Fund Balance July: =1 412 868; 412,868 675,031 . CITY OF'NEWPORT BEACH Changes Statement of Revenues, Expenditures and in Fund Balance . Budget and Actual '• Tide and Submerged.Land Special Revenue Fund For.the Year Ended June 30, 1994 1994 1993 Variance Favorable Budget _ ,. Actual ' ' (Unfavorable) Actual •Revenues: Licenses, fees and permits.. $ 1,074,582 $ 971,494 $ (103,088) $ 823,803 .: Intergovernmental revenue 104,000 - 110,421 6;421 104,553 Charges for services 20,200 107,188 86;988, 116,048 `. Revenue-from use of. • money and property 41368,00 3,672,218 (695;792) 3,788,247 < _ other–, 2525 27,8 31 25,306 2 810 , :• . Total Revenues 5,589,317 4,889,152 (680,165) 4,835,261: ". Expenditures Current Community services . 442089', ' 401,787 40,302 417,979 • Capital expenditures '812,006. ;346,018 465,988 233,865., Debt service: " ^ • Principal ,retirement Interest and fiscal charges 76 783•.. 180 33Z:; 76,763 '. 159,809 72 195,89,4..,; , " 20,728 •. Total Expenditures. 1,51f,195:: 984,177 527,018 920,444 —7 777777777 Excess of Revenues. Over Expenditures 4,058,122 3,904,975 (153,147) 3,914,817.-,,: Other Financing Uses: Operating transfers out (4,246,233) (4,078,192) 168,041 (3,726,890) Excess (Deficiency) of Revenues Over(Under) .... Expenditures and Other Financing Uses 14,894 „'. (188,111:) (1;73,217) 167,927- • : fund Balance, July 1 173,217 173,217 (14,710) Fund Balance, June 30 $ (14,894) . $ $ 14,894 $ 173;217 55 <, I 1 .lions ;` -' $ 1000,000 37,911., (968089),;. 51064 ; talRevenues 1,OOOOp0 486,889 (513,111) 154,580 res expenditures 387,808 222,343. 1¢5,463 571,945 ,cess (Deficiency) of Revenues Over; (Under) Expenddures 612,194 264 546 (U7,648) (417,365) nee July 1 5 V 1,109 251 1,528,676 • nee June 30 $ 1 721,4'45 $ 1;373,797,, $ (347,648) $ 1,1{)9,251 • Adik 56 •. CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual • Circulation .and Transportation Fund ' For the Year Ended June 30, 1994 :1994 1993 Variance Favorable Budget ' Actual (Unfavorable) Actual • Revenues: Revenue from use of money and property. $ 205,000: $ 187,281 $ (17,719) $ ": 169 473_ • - Contributions 500,000: 298,378 .(201,822):9 122,013:: , Total Revenues 70.51000: 485,659 (2191341) 291,486 , Expenditures: • Capital expenditures 661•,069 135,496 525,573 '305,480 . ' Excess (Deficiency)',, • of. Revenues Over . (Under) Expenditures . 43'931. . 350,163 306,232 • 6,912,127 Fund, Balance July 1 6 898 133:. 6;898,133 Fund Balance June 61942"06141 $ 7,248,296 $ 306;232 ' • $ 6',898 133 • • .. 57 Expenditures CITY OF NEWPORT BEACH Capitafexpenddures •. F�rcess (Deficiency) Statement of Revenues,. Expenditures and Changes in Fund Balance of Revenues Over Revenues Ovee(Under) , (i)Mao Expenditures,:. Budget and Actual Expenditures and . ' • Other Financing Uses > , . .'Building Excise Tax. Special Revenue Fund dpeisting transfers out • For the Year Ended June 30, 1994 Fund Balance July 1 - 343,425 343,425 415;648 ..— 1994 1993 Variance : • Favorable., Budget Actual (Unfavorable) Actual Revenues: 58 License, fees and permits $ 125,000 $ 85,587 $ $, 92;177. Revenue from use of money and 2800011.- 22 317 (5 683) ` 21,073 • property Total Revenues ,. 153,000; 117,904 (35,096)' 113,250 roe Expenditures Capitafexpenddures 74,713 49,990 24,723 :. 185,473 •_ F�rcess (Deficiency) of Revenues Over Revenues Ovee(Under) , (i)Mao Expenditures,:. 78,287. 67 914 (10,373) (72;223) Expenditures and . ' • Other Financing Uses > , . :OtherFinancingUses (321,92$) (332301) (10373) (72,223) dpeisting transfers out (400 21,5) (40Q,215) Excess (Deficiency); of Revenues Ovee(Under) , Expenditures and . ' • :OtherFinancingUses (321,92$) (332301) (10373) (72,223) Fund Balance July 1 - 343,425 343,425 415;648 ..— Fund Balance Juns}30 $ 21,497 $ 11,124 $' (10,373)'`: $ 343,425. 58 ,. • CITY OF NEWPORT BEACH Revenues, "Expenditures Statement of and Changes In Fund Balance Budget and Actual Combined Transportation Fund For the Year Ended June 30,1994 1994: 1993, id Variance Favorable :. Budget: Actual- (Unfavorable),, _..Actual • : ,Revenues: Intergovernmental revenue $ 700,000 $ 2,330,565 $ 1;830,585 $ 988,871: • Revenue from use of money and property 49,000 34,500. (14;500) ' . 43,228? • Contributions 2,634 2,834 `Total Revenues 749,000 2,367,699 1,618,899 1,011,899 • Expenditures: :. CapitJ.Expenditures 3955,948 1,337,051: 2,618,897 940,268 Excess (DefiiGeacy) " • of Revenues Over (Under) Expenditures' (3 206 948) 1;030,648 4,231,596 71,631`' .. Fund alance my 1 • 71,631 , 71,831 Fund Balance, June 30 $; (3,135,3U7) $ 1,102279 $ 41237,598 $ 71 ";831 • 59 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, 1994 • 1994 1993 . Variance Favorable Budget_ Actual "(Unfavorable) Actual • Revenues Intergovernmental revenue $_ 473,690 $451,396. $ (22,295) $,639 706, • Expenditures.` Current •.. 6n inunfy development 600,950. 451;,395 149,555 '639558 lExcess (Deficiency) • .... of Revenues Over':" ver _ (Under) Expenditures {127 280), 127,260 148 Fund;BalanCe, July 1 (1 48) - 11M.Balance "June 30 $ -(1'27,26d) • $ $ . 127,260 $ • . •' • • • • • 60 • CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes In Fund Balance Budget and Actual ,•. Ackerman Donation Fund For the Year Ended June 30, 1994 1994:,, 1993 •. Variance Favorable Budget:: Actual (Unfavorable) Actual • Revenues: Contributions': $ 185,000 $ 185,000 Expenditures: • Current Community ifevelopment 121,100 103,800 $ 17,300 •. community services `' Debt service 51,900. .51,900 Principal retirement 12;000 12,000 Adak Total. Expenditures 185,000`: 167,700 17,300 Excess of Revenues Over Expendtures . 17;300 17,300 • Fund Balance July 1 .. Fund Balance June 30 $ 17;300 $ ..: 17,300 • • 61. .0 I Capital Projects Funds • • • • CAPITAL PROJECTS FUNDS Capital Projects Funds are used 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 Projects funds are as follows: The Capftal Improvement Fund is used to account for the receipt and expenditure of City funds specifically identified far capital improvement projects. • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH • Combining Balance Sheet All Capital Projects Funds June 30, 1994 Central Capital Assessment Library • lmpro4ement District Construction ' Assets Cash and investments $ 1,100,000 $ 1,128;418 $ _ :.378;965 . Restricted assets -cash and investments Total Assets $ 1,100,000. $,.1 128 41 S $.,. 31§,965 Liabilities2nd Fund Balance •: Liabilities. Acr Quilts payable and accrued Ilabildies $. 4,956 $ , 201,895 Due to other funtls 1,198,032 Deposits: 403.550 %`. • TotalLaabildres 1,202,988 605,445 Totals 1994. 1993 $ 3,607,383 $ 3,801,164 • 3,093,310' ' $ 2,607,383 $.6,894,474: $ 206;851 ::. $ 349,563: • 1,198;032 1 198,032: 403,550 344108< `• 1,808,433 1 891 701:: • . ' 56494.;'. • 4 946 2T3:, • . , 798;950 6,002J73 •. $ 2 601.383: $ 6,894,474' • 65 Other 'ToWRtiVenue! Expenditures:, TotE E . . . CITY.IOF NEWPORT BEACH . Combinhg Statement of Revenuesi Expenditures and Changes in Fund Balances All Capital Projects Funds For the Year Ended June 30, 1994 Central. C Assessment Library Improvement - District Construction Venue., $ 363,694 :money • 172,55 $ 18 486 18,486 536.25 3 9€1,683 4,628,799 icy) Expenditures : (81,167) (4,092.54 6) • 19,787 . . .. . . . . . . . .g Sduroe� . ..... in 19,787 ficiency), of Revenues: w Financi -So ng urces; ider) Expenditures Fund Balances, Jutyl Fund Balances (Deficit 11 :. Totals 1994 1993 • $ 363,694 $ 181,847 • 172,559 '61,168 18,486 111,497' 360,000 • 5541739 714,512 4,728 482 4 501 031 • :.. (4;123 743) (3 7$6 519) • (49,667) .. . 708441 706441 (4,201,44):,- (3,078,078) • 5,002 773 °- , 8,080851 ;•' $' 798,950 $ 5,002,773 • • ; 67 CITY OF NEWPORT BEACH Changes • Statemeht of Revenues „Expenditures and in Fund Balance ” Budget and. Actual Assessment-. District Capital Projects Fund • For. the Year Ended June 30, 1994 • 1984:.: 1993 Variance • Favorable' Budget Actual. (Unfavorable) Actual Revenues Contributions $ 18,486 $ `, 1$,486. $ 1.1.1,497 . Expenditures •' "Capital a 0.Witures . $ 181,643 99,683 81,960 697,978 Excess (Deficiency) of Revenues 1. pver(Uhde� Expenditures (181,643) (81,197) :100,446 (586,481) • Other Financing Sources (Uses) Operating transfers out (4 9,867), (49,867) ` Proceeds from long term lit 708;441 - Total Other Financa>q`Sources (Uses) (49,887) , (49,867) . Excess (Deficlency) of Revenues, and Other Flnaneing Sources " • <S over Poo: Experiddures and Other Financing Uses (181,643) (131 084)' 50,578: ' 121,86D Fund. Balance, July :1 56;494 56,494 :` (65,486) ,• •' Fund Balance June 30 $.(125 149) $ (74,570) $ .50,579 $ 56 „484 88 CITY OF NEWPORT BEACH .. • Statement. of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Central Library Construction Capital Projects Fund For the Year Ended June 30, 1994 .: 1994 1993 Variance ' Favorable Budget Actual (Unfavorable) -. Actual • Revenues; Intergovernmental $ 363,694' $ 363;694 $ ' 181,847 Revenue from use of money andpropertY 172,559 172,559 61,168 '• Contributions 380,000 >` ,.. Total Revenues 536,253 ' , 536;253 603,015, Expenditures • Capital expenditures $ ::4 967;370 4,628,799 338;571 3,803,053 • Excess (Deficiency) of Revenues Over (Under) Expenditures ,- (4 967370)' (4,092,546) 874,824 (3,200,036) Olher]Financing Sources . Operating Sransfers m 19,787 .19,787 Excess (Deficiency) of •" Revenues and.Other ;Financing Sources :Over • (Under) Expenditures (4,072 759) 894,611 " (3,200,038): Fund Balance,: July 1 3,846,279 3,846,279 7 046,317'? `• Fund Balance' June 30 $ (1,121,091) $ (226,480) $ 894;611 $ ,.3846,279 • = B9 • • • • + ;„ Enterprise Funds 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 1991 -92 are those listed below: • The Cannery Village Parking Fund :is used to :account for the revenues and expenses of • operating the Cahnery 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 Wastewater Fund is used to account for the activities associated with providing seiner servtcesby the City to its users: • The Marina park Fund }s used to account for the activity of the City owned Ivtarinapark mobile home facility . • zs • • • • • • • • • CITY OF NEWPORT BEACH • Combining Balance Sheet All Enterprise Funds June 30,1994 Cannery Village •. Assets' parking Water Wastewater Current Assets: .. Cash, and investments $:..13,047,472 Accounts receivable and accrued revenues . 2 434,746 342,296 Inventory of materials and supplies, atoost . 5092 •" Restricted assets- cash -and investments $ :95;337 ' Other assets ---.. St • Total Curren, Assets 95,337 15,530,491 1,590,627 Fixed - Assets. Land 1,039,163 2 016;450 Structures 107,471 34,118,534 3.1374,088'i Equipment 510,227, 31;460 Construction mprogress - 1,2411886 •. Accumulated de. recration p (24,598) ,(20,522,535) (20,859,230); Net Fixed Assets 1 122,036 17,364,582 10546,298„ Total Assets $ 1 217,373 $': 32 901,053 $ 12 136,923 Lratiitities'and Fund Equity . Currerri ,liabilities: Accounts;payable and accrried liabilities $ 21,1:48 $ ' 1,292,740 $ 18,846 Accred payroll 28,807 9,682 Due to other- -funds 835,$73 Deferred rBVenue Deposits 103,980 Total Currert - labilities 856,721 1,423;527 28;528 • Fund Equity:. . ..Contributed capital 4 89$,154 " 9,145,593 Retained Earnings. Unreserved 360,652 26,784;372 2,962,802 • Total Fund.Equity . 360,652 31,477,526 12,108;395 • Total Llabilitles and Fund Equity $ 1,217,373 $ 32,901,053 $ 12,136,923 AOL Totals Marinapark. 1994 1993 • $. 200 $ 14;296,003 $ 13,589,111 2,777,042., 2,699,502 54,192 68,633 95,337 . 95,337 81 - 2,690 200 17,222,655 16,455,2 3 1,000 3,056,643 3;058,813 • 335,089 65,935,160 64,462,958 5,778 ;547,463 ".: ', : 1,885,061 1241888 • F244 941).,.. (41 851 274) : (41,133,548) 96 954 29 129 848 ., :28;27 083 • $ ..97154 $ 46,352 1 44 726,356 • . $ 3,806 $ f ;336,540 $ 883,420 • 2,398 38,887 103,121 75,950 913,523 1;033,570 7 . 103,980 ` 120,107 82,154 2,390,930 2,146,225 ... 15,000 43,853,747 13651,039 ' • 30,107,826 28,935,092 ' 15,000 43,964,573 42,586,131 •' $ 97.154 $..46,352:503. $ .44,726,358 ' • 73 CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenses and Changes in Retained Earnings All Enterprise Funds, For the Year Ended June 30, 1994 Total Operatng Revenue = 69,810 12,347,179 1,922;745 Operating Expenses: 65,511 884173 7551450 . Purchase o(water 6,846,369 Salaries arid wages" 65,511 1,983;232. 632,291 Depreciation 4,299 737;538 709,585.::; Professional services 928,587 (322,939) Maintenance and supplies _`• $ 360,652 429;209 $ 2,962,802 Systems maintenance 659;660 Other:;: 588;596 ., Total Operatmo Expenses 4,299 12,173;191 1,341,876: Operating Income 85,511 173;988 58q,8t39 N' operating Revenges (Expenses) Intepovemmentai revenue . Interest income ` 936;559. 94,709 Other ,income 74,872 Interest expense Loss on sale;offixed assets Total Nonoperating "" Reve1i*4Expenses)• .. 710,185 174,581 .: Income Before Operating Transters,' 65,511 884173 7551450 . Operating transfers out . Net Income 65,511 884,173 755,450 Retained Eamings, July 1, 295,141: 26,109,660 2,530,291 Residual equity transfer out (209,461) (322,939) Retained Eamings, June 30. $ 360,652 $ 26,784,372 $ 2,962,802 74 • • • • • • • • Totals Madnapark, 1994 4893 • $ 551,152 $ 14,733;446,. $ 13,225483 • 16,209 173,649 57,415 567,361 14,907;095 , 13;282,898 6,846,369 5A81,264: . 2,615,523 2,493143 9,5$7 1,460,989 1,520,798 • 53;852 22,322 982,439 451,531 1 - ,074,330 391,747 _ 659660 66;004. • 588;598 (. .9]6;726 85,741 13,605,707 1119891'502:%. • 481620 1301:,988 1,293,396 , 52;578 • 7,527 843;795 818,153 74;872 42;27;1 • (26,374) (15,925) 7,527 892,293 897,015 • 489,147 2,194 ;281 2190,47`1 •. - (489,147) (469,147) „ (516,339) • 1,705,134 1, 674, 072 28,935;092: 27,261,020 •. (532,400) '28,418J53 $ $ 30,107;828 4 571353,845 • 75 CITY OF NEWPORT BEACH Combining .Statement of Cash Flows - All Enterprise Funds For the Year Ended June 30, 1994 Cannery . Village Parking Water Cash flows from operating activities .. Operating income $ 65,St1, $ 173,988 • Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 4,299 737,538.: .. Other revenue:• - Changes in operating assets and liabilities: (Increase) decrease in accounts receivable ' (719,284) ( Increase) decrease in inventories of materlals ' . and supplies at.cost 14,441 • (Increase) :decrease in otherassets 2,60.9 Increase(decrease)in accourds Payable Increase (decrease) In-accrued payroll 465,290 (49,558) ., 0' Increase (decrease) Ih due to other funds .. (69,810) Increase (decrease) m deferred revenue liicrease (decrease) in.deposns .. (16,127) , Total Adjustments (65,511) 1,034',902 • Net cesfiprovided.by operating activities: 1;208,890 - Cash flows from ,noncapiteIII nanang 8ctrvfies • Operating transfers to other funds Cash flows from capital and related finandrg activities,•. Acquisition of capital assets (1',921;733) Proceeds from sale (loss from.disposaq of capital assets." (30) Prinupal paid on certificates of partiapation. Interest paid--on certificate of participation • Net cashused for capital,and relatedflnancing activities (1,921 763).:, bash flows from Investing activrbes. •' InteresCon investments 736,559' Net Increase (decrease) irr cash • and cash equivalents ' 23,686 Cash and cash equivalents, July 1 $ 95,337 $ 13,023,786 • . Cash and cash equivalents, June 30 $ 95,337 $ 13,047,472 Noncash Activities: •. Contributed Capital -. $ $ 88,010 • 76 • Totals • Wastewater Marinapark 1.994. ` 1993 $ 580,869 $ 461,620 $ 1,301,988 ':z $ 1;293,398 709,585 9,567 1,460,989 1,520,298 74,872 74,872 94,787 . • 938 40,806 ". (77,540) ? (601,232) 10,804 •' 14;441 3,720 2,609 (853) .', 31255 .,: 453,120 96,273 . (14;878) .(64,234)... 6,625 (52 23b.. : (122,047) , . 106,781 m ." (16,127) (13,876) 755,294 1191 . ' ' 1726076 ,?, 1,223,327 • 1 336,163 483 071 :' 30281%4 2;516,723 (489 147) ; (489;1.47 •; (518 339) (799;514) (11911)- (2,722,438) (2,029,857) • 46,648 46j618 (245,000) (752,868) (1,191), (2,675,824) (2,290,782) • 99,709 7;527 ; 84795. 818,153 • ` '683,006 200 708'892 527,755 " 565,325 $ $ 13,684,448 ` :$:::!3,156,693 ' •$. $ 1,248,331 .. $ 200 $ 14,391,340 1. 13,684,448 • $ 114,698.. $ $ 202,708 $ 145,005 • , 17 Internal Service Funds INTERNAL SERVICE FUNDS 0 0 Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the;City on,a,cost reimbursement basis. City of • Newport Beach Internal Service Funds are listed below: ' • The Insurance Reserve Fund is used to account for the City's self insured general liability and . workers' compensation program as well as the City's accumulated liability for Compensated • Absences.-. The Equipment Fund is used to account'for, the cost of maintaining and replacing the City's • ro0ingstockfleet and the rental of the. fleet to operating departments.. • • • • • • • • • • • • 79 Fund,Equity: Contributed Capital 4,097,648 4,;097,648 . Retained Earnings (Accumulated Defi Unreserved Total Fund Equity. Total Liabilities and Fund Equity (17,039,439) CITY OF NEWPORT BEACH Combining Balance Sheet (17,071,776)- (10,155,853) •. 4,065,311 All Internal Service Funds (10,155,853) $ 2,995,072 $ 4,636,754 ..... June 30, 1994 .. Insurance Totals Assets Reserve Equipment 1994 1993 Current Assets: Cash and investments $ 2,363,788 $ 637,725 $ ' 3,001,513 $ 5,944,425. . Deposits with other agenc(es . 631,284: 631,284 Inventory of matenats and,- • supplies, at cost 167,210 '. 167,210 Total Current Assets 2,995072 804,935 3800,607, 5,944,425 • Fixed Assets:... Equipment;` _ 4,981,437 4,981,437 Accuitiuiated depreciation (1,149,678) (1,149,618) Net Fixed Assets 3,831,899 3,831,819 `7,631,826 • Total Assets $ 2,995,072 $ 4,636,754 $ ; $ 5944,425 Liabildies and Fund Egwty.i Currerd LiebUftles, Accounts payable and accrued- llabildies $ 178,145 $ 75,269' $ 253,414 .. Accrued payroll 12;400 12400 Capitallea$es- current 112,275 112,275 Wojkersccmpensation— current !]50 000 950,000 $ 500 600 • General,LiabilAy current 1,1100,000 1,000,000, 750 Q00 Cetiipensatad.absences= current Total Current Liabilities $¢0000 2,778145 199,944 650000_ 2,978,089 700000 i 1,950.0,00, Nonctitrent,LiabilRies. Capftatieeses 371,499 371,499 • Worker's`campensation 4,489,744 4,489,744 3,202,842 General iabilfty 6,323,396 6323396 5,669,158 Compensated absences 6,443,226 36 443,228 5,278,278 • Total noncurrent liabilities 17,256,366 371,499 17;627,865 14,150,278 Totalliabildies 20,034,511 571. 443 20,605,954. .`: 16,100,278' Fund,Equity: Contributed Capital 4,097,648 4,;097,648 . Retained Earnings (Accumulated Defi Unreserved Total Fund Equity. Total Liabilities and Fund Equity (17,039,439) (32,339) (17,071,776)- (10,155,853) (17;039,439) 4,065,311 (12,974,128) (10,155,853) $ 2,995,072 $ 4,636,754 $ 7,631,826 $ 5,944,425. 80 • • CITY OF NEWPORT BEACH • . Combining Statement. of Revenues, Expenses and Changes in Retained Earnings All Internal Service Funds • For the Year Ended June 30, 1994 • .. Insurance Totals Reserve Equipment 1994 1993 Operating Revenues: Charges for services $ 2,607,159: $ 3,164,285. $ 5;771,444 Other 44,439: 44,439 • Total Operating Revenue 2,651,598 3',164,285 ,5,815,883 •" Operating Expenses: Salarles andwages 956,408 956,408 • Depreciation 1,149,618 1,149,618 Professional services 77,814 77,814 MaIntenance and supplies 129,370 129,370 . Flee parts and supplies 445,998 i 445,998 Workers' compeirsatron 35061016 3,506,016 Claims and judgments 3,554;026 .. 3,554,026 $ '- 1,352867 • Comperreated absences 2,133,384 ;. 21133,384 411',408 • TotalOperehng enses 9,193,426 2,759,208 11,952,634 1,764,375 Operatnp Income (Loss) (6,541;828) 405,077 ,., (6;136,751) (1,764,375) ,. Nonoperating Revenues Interest income;.. 173;809 Gain on sale of. Cored assets 38,959. 318.959. total Nonoperating Revenues 38,959: 38,959' 173,$09.: • Income (Loss) Before • Operating Transfers (6,541,828) 444,036 (6,097 792) . (1,590;566) Operating transfers in 3,500,000 Operating transfeis out (341,758) (476,373) Net Income (Loss) (6,883,586) (32,337) (6,9ti5,923) 1,909,434' . . Retained Earrings (Accumulated Deficit) July 1, (10;155,853) - (10;155,853) (12,065,287) . • . . Retained Earnings ( Accumulated • Deficit), June. 30 $ (17,039;439) $ (32,337) $ (17,071,776) $ (10,155,853) 81 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Internal Service Funds For the Year Ended June 30, 1994 • (Increase) decrease in depositsiwith other agencies decrease (631,284) • (Increase} in inventories of materials and supplies, at cost (167,210) Increase (decrease) in accounts i ayabie 178;145 75,269 • lr*easer(decrease) in accrued payroll 12,400`. kcrease (decrease) in.workers compensation 1,736,902 Increase (decrease} iri:geni ref Gabti"ity 904,238 Increase (decrease) in compensated absences 1,114,948 Total Adjustments . 3,302;949. .: 1,070,077 Nei bash provided (used) by operating activities <. (3 238,879) 1,475,154 . Cashtiows from nonoapitalmancmg aces: • Qperating:transfers from other funds .:. Operating transfers Ad funds ds (341,758} ' (476,373) ' Net cash noncep" financing activities (341;;758) (476,373) Cash flows from capital andrelated • ., finane" activities: Payment of capital lease obligation (136,367) Ac" on of capital assets . '- (407,665) Proceeda..from sale of capital assets 182,976 Net cash used for capdal and • related financing activities "(361,056) Cash flows from imrestxrg activties.. • Interest on investments Net increase (decrease) m cash •. and cash equivalents (3,5$0,637) 637,725 Cash and cash equivelerds, July 1 . 5 944,425 • Cash and cash equivalerrts,.June 30 $ 2,363,788 $ 637,725 Norrcash Activities: Contributed 4,097,648 . capital. $ $ . Acquisition of equipment by capital leases $ $ 620,141 82 Totals ,• 1994 1993 $ (6,136,751) $ (1,764,375) • 1,149,618 (631284) • (167,21 o) ' . 253,414 12,400 1,736;902 (164;459) , •. _904,238 (85,61-3) 1,114,948 .. 373,026 (250 072) 014,447) (1,,763,726).. (2 • 3 500;000' (818;131) • {818 131) '.. 3 5110,000 ci�s,36n • (407,665) .162,976..: • (361 173,809 (2,942,912) 1,659,362 5,944,425 4,390,616 • .. $ 3;001,513 $ 6,049,978" • :: $ 4,097;648. $ $ 620,141 $ • 83 �. �, �� �. �.: as Fiduciary Fund Types 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 CmVensadton Fund is used to track the assets of the Gty:s deferred compensation plan for its employees. • • • • • • • • • • • • • • • • • I CITY OF NEWPORT BEACH Combining Balance Sheet All Agency Funds June 30, 1994 Deferred Special Special •.. Compensation " Assessment Deposit Fond Fund. Fund Assets:. Cash and investments 4.19,117J96 • Total Assats $ 19,117;798 $. 325;127: $ 84 888 • Totals 1994 1993 • 19,527,811 $ 17,822,838 $ 19,527 811 $ 17,622;838 . $ 326,127 $ 268;286 84 888 589,157 19 117,798. 16,765;395. $ 19;527,811 $ 17 622 838 •,., Combining' 'CITY OF NEWPORT BEACH .: Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1994 Balance Balance • June 30,11993i.' Additions Deductions June 30, 1994 - Deferred Compensation: Assets Cash and investments i $ 16,765,395: $ 3,224,031 ;' $ , (871,630) -$.: 19,117,798 Liabilities � �� •'. Deferred compensation $ 18,765;395 ; $ 3,224,031 $ (871;630) :,, $ 19,117,796' Special Assessments: : Assets 791,795 • Cash and investments ' $ 268288 $ $ (734,954) $':. 325,127. Liabilities . Du6tobondholders $ - ..288 "286.... $ .? 791,795 $ (734;954) $" 325,127 Due to pro perty owners • TotatLiebildies $ 268286 $ ?:791795 $ (734,954) $ 325,1;27 Speci81 Deposits::. • Assets Cash and investments . $ S89 157 :; $ fi34 750 $ -84,888 •. LiaMlitfes to ' 589,157 .' 834,750 t •, Due others $: $ $ (1 139,p19) $ 84,888 Totals-A . ency Funds: Assets Cash and Investments $ 17,622,838 $ 4,650,g*. $ (2,7.45,M). $ 19,527,811 Total Assets= , $.'17,622,838 $ 4;650;576 $ (2,745,603p $!, 19,521,811 Liabilities Due to bondholders $ 288 286 ,; $ 791 795 $ (734;954) :: $ 325,127 Due to property owners Due to others Deferred compensation 589 157 16;765,395 634,750 3,224,031 (1,139;019) 84,888 19,117,796 .; (871 „630) Total Liabilities $ 17,622;838 $ 4,650,576 $ (2,745,603) $ 19,527,811,; 88 • • • • • • • • • • Account Groups kla , 'fir I yF I ie y k+� ,i w��T'�3wR�g3re�4. lir5i4+i t25C`T12mS�� %. rl iJ r ` x f � he .ian "Y .f'� � ¢ �M ♦ $ • • ACCOUNT GROUPS • The General Fired Assets Account Group was, established to account for the cost of fixed assets of the City that are used in the performance of. general government functions which are not • accounted for in the Enterprise Funds ofthe City. ' • The General Long -Term Debt Account Group was established to account for the unmatured long -term indebtedness of the City to be;paid from future general revenues. . • • • • • • • • i • • CITY OF NEWPORT BEACH of .; Comparative Schedule General Fixed ,Assets By Source ....June.30, 1994 1994 1993 General Fixed Assets Land $ n,803,068 $ 23;888,566 Structures :36,710,429 36,579;956 ! . Equipment 9;9396360 "" 9,366,202. Automotive 9,214 220 ' • Total General Fixed Assets $'7Q,452 855. '':•,. $.79,048,944 • Investment m General Fixed Assets -. . Total Investment In,Fixed Ass0s $ 70,452,855 $ 79;048,944 '. •: Ami CITY OF NEWPORT BEACH • General. Long -Term Debt Account Group Comparative.Schedule of General Long -Term Debt June 30, 1994 1994 1993 .. Amount Available and to be Provided for the Payment of General Long - Terra Debt. • Amount available in debt service fudd $ 668,754" $';`.. 855,270 . • Amount to be provided. for the payment of.generallong4ermdebt 10,550,624 10,969,970 . $ 11,218;378 $ 11;825;240 • General Lang -Term Debt Payable Certrfioates of participation payable' $ 7,370,000 $ 7 500,000 Caprtalied leases 488,961 663,060 Note payable 3,115,417 3,192.1,80 Loan payable 245,DD0 470,000 $ 11:1219,378. $'11,825,240 Y • : 91 • • • • • • • • • • • • • • • • Statistical Section A{F .wx �4 .asy '" � � � ap tii � �fi b� •� 4 x a c na k a w k4wY� aA a n,. wi. �_ �. '•e 'a ..:x...,x: �ti3' ..m,. r F ,. a '' #� c}„: 0 • • CTTY OF NEWPORT BEACH Miscellaneous Statistics . June 30, 1994 • General Information; Dateof Incorportation :................. ..:...... .................................. :........ ........ ........... 1906 Form of Government..... ............................................ :....................... Council- Manager , • Population: Permanent - ................ 69,301 Summer.......:... ........................ a ......... ........................ ........ ........:..,......100,000 Tourist ........: .. ....... . ...... . .........................., ........ ........ 20,000. to 100,900 per day Housing units ........ ....... I ...... 35,565 Occupancy Factor per dwelling unit .... ..,. ............ . ........ .....:.:.1.95 Area:.. Square Miles Acres Land . ,. 14.01 9;024.Q Bay 2.04 1,305 :6 Ocean 20.00: 12,800.0 Total 36.05 23,129.6 • Population Density , 4,946.$ Recreational Area ......... ..........................:.... ... ... :........ .... ... ........ ......... ........ Acres . Ocean Water. .............:... ...: ::: ... : :,... ....:: :. ... , ... ......... Harbor- Wafers ....... ........ ... ,::.: 1,306..: ' Parks 154.. • . Beaches ... :.:... ........ ......... ..... ::.. ...::... Total : ::::..:. 14,465 .. Water Frontage ......... ..................................... .... Miles • Ocean ......... ......... ... :::... Harbor . ::.... ..... ......... : ' 7.21 35.94 Total Water Frontage.._ . .................: .............. ................ :... ......... .........43.15 Newport Harbor:. ` Boats ..... :.., 9,000.. . • Residential: ...... '.:. 11230. Commercial Slips and Side Tres.,;. :::: ...:. ........: ......... ......... ........2,119: . Bay Moorings, .............................. 1,221 Public Safety Police Fire Marine Number of Stations 1 . 6 1 Number of Personnel 145 110 54 93 General Governmental Revenues by Source (1) 1987 -1988 . 4,878,412 - 21;845,493 ` - -: - - .13,043,460 450,234 5,234,304' 16,657,535 67109,438. (Last Ten Fiscal Years) . 1988 5,248,695 13,870,397 5,996335 - • -1989 22,014,671 -- 1,603;571 .1t,175,425 - 59,909,595 - -- - 1989-1990 3 365,259 26,729 452 : 13 804,705 185,924 6,609 717 ° Fines, - - 78,306,200 - - . -- • Licence,. Inter- Charges Forfeitures Revenue from 16,034,084 . •.' Fiscal 17220,226 $ Fees and governmental for - and Use of Money (1) Includes General, Special Revenue, Capital Projects and Debt Service Funds. Year... Taxes ' Permits Revenue Services Penalties and Property Other. Total . . " 94 •' 1984 -1985 S 25,585,877 S '2,031,715 $ ..4,303,410 S 7733,303....5 2,541,878 S 6,382,834 S 2,349,901 S 45,929,118 1985 -1986 48,685;016 2,185936; -- 10,915;059; 3,700630 3,039221 6,661,032 $631,416 57;818,310 • 1986-1987: - 31,663,304 - :2;387,41) -,: - -" - 7,132,740. 3;963,061 2,372,335 6;907,803. -.. 3,298,061 59,724,715. 1987 -1988- - 34,076,119 7294,447 &157,975 1. 4,266,091 2;881,443 7,528,267 : $,053,836 _ 64;25&]78._. -, - 1988 -1989 279 37,245;. �' -" - 2,517,205 -;. -: 6,858,019 4,821,564 2;964,864 . ! "8,391,781 - I 3,649;089 - . - 66,447,801 - - - 1989-1990 38,389,789. 2,653,730 - - 16,537,544. 4,899;970 3,376 570 9,766 006' '.: 2,441,088 , 78,064,697 • 1990 -1991 "40,479,235'- 2,808.179 - 11,029,004= 3,466,023 3,114983 '- „9,999,416 3,555,699 �" 74;451,539 - - - 1991-1992-': "40,466,232 1;903,044 -- 10,819,561'x- 4,609,812 3.0$3,246 - x'9,611,524 2,124037': 73,185,456 • - 1992-1993;_ 38;471,775 .1,795 278 7,621,643. - 4,703,200 2,584969. . :9,469,060 - ..1,743,093 45886,978 19931994. 39809,139 1948,853 8,993,289. 5,077,369 7706,194 `8,660,599., 2,139,567; 64,33$,012 • (1) Iaclueies General, Special Revenue Debt Sery ce and'Capital Projects Funds. : _ • . General Governmental Expenditures by Function (1) ..(Last Ten Fiscal Years) • Fiscal t:,eneml ..Public - Prbhc `� Community Commutty ;Capital Debt •. Year: Government,' .:Safety .Works . `. .Development Services , Ezjenditures Service. Total 1984 -k985 S 4,179,894 a. 21,185,295 Sj' 7,17L611' S 4,504,398 S 10,249,933 ` S 47,241,131 • 19851986. 41736,475 21,337,158 7,468,089 $ 7127;784 (2) 4;394.728 :11,971;392 52,033,626, - 1986 - 1987 .-..-.5,198,407 '. - 20,371,613 - ' 13,668,064 447,248 5,026,323 17527935 57,224,595 • 1987 -1988 . 4,878,412 - 21;845,493 ` - -: - - .13,043,460 450,234 5,234,304' 16,657,535 67109,438. - 1988 5,248,695 13,870,397 5,996335 - . -1989 22,014,671 -- 1,603;571 .1t,175,425 - 59,909,595 - -- - 1989-1990 3 365,259 26,729 452 : 13 804,705 185,924 6,609 717 ° .23,611 143 - - 78,306,200 - - ' -- • .1990 -1991 5,274,572 26911,630 t7,241,313 183,327 7,283,300 18,768,787 73,668,929 1991 -1992 7937,016 *997412 17372,598 3,411,427 8,869639 16,034,084 74,617372 ... 1992-1993. 4,359,857 31,209589 .. 17779,213:1 3,636,092 8jN1758 17220,226 $ 1,155,407 (3) 73,881,144 1993 -1994 4,607,009 34330,338 13018898` 31406,712 5,910,752 13,605,703 1,175,175 "76,054,387 (1) Includes General, Special Revenue, Capital Projects and Debt Service Funds. (2)- No Community Development Block Grant funds Were received by the City prior to fiscal year 1985 -86. (3) Mstoric d data for Debt Service expenditures is unavailable to fiscal 1992 -93. • . prior year .. Source:' City Finance Department . 94 • s s • • o $ 0 • � s s • • • • • • • • • Governmental Expenditures /Revenues (Last Ten Fiscal Years) 19 ca -S. 1985 -36 1986 -S7 1937 -33 11.908 -&9 49'e09" .950 -s? 19VI -9s 19H_' -9? 1993 -q3 General Government Revenues by ,Source (i5scit kcar 1093.94). 12% A'fi a Taxes ■Licenses & Permits ■Intergovern men tal o Charges for Services n Fines & Forfeitures A Use of Money & Property ■ Misceilaneous 1984 -19$5 Asssessed and Estimated Actual Value of Taxable Property 13;783,508 ''- 93.68% (Last Ten Fiscal Years) 392M4 Total 1985 1986; Fiscal Secured Public Unsecured Assessed & Estimated . Year Valuation. Utility Valuation Valuation 17,111,212 98.86% 1989 -1990 18,962 055 18,119,326 95.56°!0 •` 1984 -1985 $ 6,095,601;115 $ 68,160,450 $ 594,036,653 $ 6,757,798,218 94.45% 1985 -1986 6,600,799,830, 72,892,420 691,688;711 7,365,380,961 21,255I77 1986 -1987 7,090,960,057 ... 78,565,106 649;193,026 7,818;718,183 18,859,889.(1) 1987 -1988 7,710;141,525 81391,430 839;685,023 " 8,630,217,978 19934994. 1988 -1989 8,357,952,682 575,220 (1) : 688,645,933 9;047,173,835 98.81% 19894990 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 ' '101964J63 §0 • 199171992 10,385,400,896 354,820 (1) 991044,079`;- 11,375,7991195 1992 -1993: 10,876,014,710 354,820 (1) 866,157 889 11,742 517,419 -19934994, 10 991 614!135 354,820 (1)' 7041736,499 ` 11,696,705,454 • (1) Effective FY 1988 89 public utility values have decreased dye to AB2890 and AB454 transferring the pubhcublty values to a county wide. Eax rate.area. Secured.Property;Taa Levies and �ollectiona (Last Ten Fiscal Years) • Total Total Percent Delingnem % of TaMal Tax . Ftsgl 's bltrrent Cutrent ;9fLevy, Tax Total Collecuorts • 1984 -19$5 $ 11,544 979 13;783,508 ''- 93.68% $ 392M4 $:` 11,208;448 1985 1986; 12,978;040 121189,094 9192% < 364;658 12;553,752 1986 -1987 ;14,395,151 13;783,508 ''- 95.75 %'° 465;780. 14,249,289 9 9:990/0 1987 -1988 15,F42,564 15,311,519 96.04% _ 493,507 15,805;026 99.14% 1988 -1989 17,30 8,591 16;678,689 96.36% 432,523 17,111,212 98.86% 1989 -1990 18,962 055 18,119,326 95.56°!0 392;912 18,512,238 97.63% 1990 -1991 21,031,117 19863;098. 94.45% 433,571 20,296,669 96.51% 1991 4992 21,516,647 21,255I77 504;000 " "` 21,759,177 10113% .. 1992 -1993 18,859,889.(1) 18,508,590 98.14% 536,760 19,396,649 102.85% 19934994. 17,870,028 (2) 17,131,159 95.87 % 526;025. 17,657,184 98.81% (1) Effective 1992 -1993, Orange County. reduced Secured Property Tax Levy as a result of the State Budget Process. (2) Effective 1993 -1994, Orange County again reduced Secured Property Tax Levy as a result of the State Budget Process. Source: County of Orange Auditor - Controller's Office 96 • • • • • • • • • • • 'Total Assessed Valuation / Property Tax Collections (Last Ten Fiscal Years) .12,000 I "JI)o • 2 • • • • • • • • 1 9N, �;A Total. Property Tax- Collections Delinquencies . 4st Ten Fiscal Years)... 104-95 1985-86 1996.87 1987-88 I Y" fig 19X9 911 1990-91 1991.92 1992-93 1993-94 97 25,000 1p .i1I'1 4,000 3,000 O 2,000 1V 1,000 1985 Construction Activity ` -1986 '4,702 801 (Last Ten Fiscal Years) Fiscal Building Permits Percentage Estimated Percentage • Ycar Issued Change . Valuation, Change 1990 6,97 I,424 •. 1984 -1985, 7,050. S059a.;- $ .: 986;359,481 99.81% • 1985 -1986 8,263. 17,2161/f 178,846,581 -4.03% • 1986 -1987 9,859 '' 19.32%° 180,434 ,990 0.89% 1987 -1988 9337 - -5.29% :;, 1201512,114 33.21% • 1988 -1989 = , 9,228 '` -1.17 %:, 194,655,287. ' 6L53% 1989 • -1990 81800 4.64% 118,087,775 39.33%; ., 1990 -1991 7,600 13.64 °h 110,500,000 1991 -1992 31268 :` 437% 77,413,996' - 29;94% 1992 1993 7 251 0.230/c .' 72,170 274 6.7740 . 1993,411190't . 9..., 6 986 -3.66% 7 2 0,339,52 ° ' - 2.54/0 - Source t ity Buildingland- Deparbneirt. • Plamung A. Bank.Deposits `. -a" Ten Fiscal Years): •. (thousands) Calendar Year Bank Deposits • 1984` 230 • 1985 1480A26 ` -1986 '4,702 801 1987 6,011,254 . 1988 • 1989 6,631,511 1990 6,97 I,424 1991 .. 4,33'1.692 1992 4,359,067 • • • • • • • • Estimated Value of Construction Number of Building Permits 200 ISO 9.000 ,160 �n 140 0120 ,100 80 9 Z; 60 E 40 20 U 8,000 , 7,000 61000 j 5,000 -- 4,000 3,000 Fiscal Year Property Tar Rates - Direct and Overlapping Governments .(Per $100 of Assessed Value) (Last Too Fiscal Years) • - .., . School . County County Flood County, City Metro Water ,. Districts Improvement - :Contra) . & School levy : District Total. . . 1984 -1985 S 0.01938 - S 000032' S 0.00177 S ':. 1989 -1990. .`- 0.00826 „. 0.00017 ;.. 0.00093 -. 0.01560 S 1.03707 .,,. .. :• 1985 -1986 - - 0.01434 ' 6.00030 ' 0.00163 < 1.00000 _ 0:01640 1.03267 -. - - 1986-1987 . - 0.01186 - 0-00027 0.60142 1.00000 0.01480. 1.02835. - 1987 -1988: 0:011916 - 0.00022 - - 0.00117, , -, 1.00000 " 0,01120 . 1.02175 - 1988 -1989 - ;0100852. 0.00022. -.'- Q.60111 . 1.0000D - O.OI [00 - `'1.02085 _ • . ':. 1989 -1990. .`- 0.00826 „. 0.00017 ;.. 0.00093 -. - 1.00000 0.01210, :'1.02146 - - .. 1990-1991, 1 0.00252: 0.00016 ` 0.00082 .:0.00231 1.00000 0.00920 `!1 01320 - •` 19911992'.'.: - 0.00072- ...000063- :1.00000 0.00744 1.0106,;i - 19921993 ;;090239 0.00013 ,. -: 000065 1!:00000 0.01171 - :1.01498"" = .. • 1993 1994' ..' 000000 090011 .' 000067 1.00000 0.00326 -. 1 00404 Uflice: Source. Couary of Orange Audrtorlontmller's 1 GotnputatiotrbCLe gal Debt Margin June 30, 1994 ... Tota4:400sed value of all real & personal property 4. $11,696,705,454 (lj • Debt ltmtt percentage Total. debt bmtt ". , 51,754,505;818 Amount of debt applicable to debt limit 57,3701000 • Legal debt margin 51,747,135,818 (1) The fiscal year 1994 debt limit is used on assessed value being equivalent to 100% of market value. • • Source: City Finance Department . • 100 • • CITY,OF NEWPORT BEACH Principal Taxpayers June 30, 1994 Property Tax,. (listed alphabetically) '. 1993-94 Assess Per=tl Principal Tg?Miye Type of Business Valuation of Total Aetna Life Insurance Company if Insurance $ ", 46,919,667 Bayview Trust:. Financial $ " 52,918;345 0.47% HAC. Real Estate Corp, . Real Estate $ 42,341,265 0.38% Hughes Atrcraft.Company Aerospace $' 97,714,696, 0 :87% Irvine Company Real Estate $ 990,485,466 8,86% Irvine Apartment Cominurutres RealEstate $ 76,564,137 0.68% Ko11 Center Offrce:Buildings $ '171,747,157 1.54 °!0 Marriott Corporation Hotels $ 64,902,063 0:58% PaineWebber Income Properties Real..Estate $ 34,908,432 031 %' ;Rockwell International Corporation Aerospace $, 152,328,191 .1,36% Schedule of Direct and Overlapping Bonded Debt June 30, 1994 1993 -94 Assessed Vahrafion- $11,788,260,433 (after deducting $ 256, 789,509 redevelopment incremental valuation) •. DIRECT AND OVERLAPPING BONDED DEBT: %Applicable Debt 6/30/94 Orange County ,; 7,381,% $57,9141 Orange County Building Authorities : 7.381 22,030,475 - .Orange County__Transri District Authority'. 7.381' - 11557,391- - • Orange County - :Flood Control District 7:389 161,819 Orange County Sarutation Districts 1156 & 7 Certificates of Participation 7.018- 96.037 30,283,442 _ OrangeCnunty Water District Certificates of Participation .1:507 3;141,643 : - - M rtan Water District- - 1.469 '9,515,448 - - MiW &11 Water District of Orange County Water FacilitiesC,orporation 0.046 - Coest Community College [hstnct, Certificates of Participation 25.818 4,030,19,1 Saddleback Community College Di'shictt Cenificates of Participation Newport Mesa:: Unified School lhstrict . 0.934 60.289 234,188 Ngtyport Mesa Unified Sc} oalDistrict Community FacilitiesDistrict and .EertificatesofParticipatiop -..: 35.070 1909156" : :. Saute Ana Unified School Flistnet and Certificates` of Participation 9.536 21 83 744 . Olher School Districts and Authontim , : Various 57,61.4" Drvine Ranch Water Dusfict Certi ficates of Partctpation and Improvement ' • Ihstncts.:. 0.025 -14.51 t '3 958,586 ` 'City of Newport.l3eeeh Certificates of Participation 100. 7,370, 000 Crty ofNewporfBeach19i5`ActBniids 100. t 940,911 TOTAL GROSS DIRECT. AND OVERLAPPING BONDED:-IfEBT $88,776,23J` Les _`:Orange County Transit District Authority "(80'/° self -snPPO -,.-,.Orange County Water District Certificates of Participation (100%self -supporting)._ • "Municipal Water District of Orange County Water Facilities Corporation (IW /o.self- supporting). :4 42,375 - - :,- -_ - • TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $84 346,303 (1) Excludes tax end revenue anticipation notes, revenue; mortgage revenue • - - " tax allocation bonds and ton- bonded capital lease obligations. . Ratios o Assessed Valuation .. •'., Direct Debt Total Gross Debt 0.75"/° Total Net Debt 0.72% STATE SCHOOL BUILDING AID) REPAYA13LE AS OF 6/30/94: $949 Source: California California Municipal Statistics, Inc. 102 �.