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HomeMy WebLinkAboutFiscal Year 1994-95 Financial Statement1 ' Arop • • • • • Cagier Nation The historic Balboa Pavilion, a computer illustration, created by Carly Kurth using an Apple Macintosh and • Aldus FreeIdand® software. • RT • • N e W p G r t I n N4* t r s t a m • Graphics: The graphics throughout this report have been pro- vided by the Newport Information System develop- • merit team. Newport Information System is a multi - departmental cooperative computerized mapping and information project. The project makes use of Geo- graphic Information System software to organize in- • formation related to certain points, lines and areas on the planet earth. Moat data used by municipal gov emment is related to a geographic feature, thus, GIS • provides the ability to organize spatial data in a cen- tralized database available to users. The GIS uses a very accurate basemapasitsbasicbuildingblock .The • master basemap is die foundation on which City de- partments build subsequent layers of geographic data. This geographic data set is the "G" in GIS. The "I" in GIS stands for information. Attached to each of the • geographic layers is an associated database. The abil- ity to have daft attached to multiple geographic lay- ers means that analysis can be done on several layers, • simultaneously, giving users the ability to accomplish very sophisticated queries and analyses. The real power of GIS lies mm this analytical capability. High- • lighted ttrouSbout this report are just a few examples of how GIS is used in die City of Newport Beach. • • • rnmaa ® ama • • • • • • • • • • • • • • • • • • • • • • 4Q lab Comprehensive Annual Financial Report For the Year Ended June 30, 1995 Prepared by the Finance Department Dennis C. Danner, Director This report is printed on recycled paper. • 40 • • • • • • • • CORONA OF,LMAR AREA • COASTLINE • • • ' YACIFlC IX:Y.AN • • INTRODUCTORY SECTION Two Minute Response Zone Corona del Mar Fire Station 5 4 .V Two Minute Response Zone The Newport Beach Fire Department must know, for dispatch purposes, areas which can be serviced by emergency vehicles within determined lengths of time. The uppermost panel in this exhibit is a network analysis of travel times along city streets from the Corona del Mar Fire Station. This exhibit also portrays the layering concept of GIS. Two water feature maps, an outline and fill, along with the right of way map form the base layers upon which the network analysis is displayed • a • i • • • • • • • • • • • • • • • 0 CITY OF NEWPORT BEACH Comprehensive Annual Financial Report Year Ended June 30, 1995 • TABLE OF CONTENTS INTRODUCTORY SECTION • (Unaudited) Table of Contents ................................................ .......... ...................... .......................... Letterof Transmittal iii ................... ................................................ ................ ........................ GFOA Certificate of Achievement for Excellence in Financial Reporting ..... ...... I ......... XV11 • CSMFO Certificate of Award for Outstanding Financial Reporting ........................... ..... xviii List of City Officials ........................... ............................. .............................................. Organization Chart....­­....­ ............... ......................................... ........ XX • FINANCIAL SECTION • Independent Auditors' Report.....;. ...................... .......................... ......... ................. • General Purpose Financial Statements Combined Statements Combined Balance Sheet. - All Fund Types and. Account Groups......... ... ...... 4: Combined Statement of Revenues'Expenclitures and Changes • in.Tun.d.Balances - All Governmental Fund Types .................................................... 6%. Combined Statement of Revenues,. Expenditures and Changes in Fund Balances -, Budget and Actual - All Governmental Fund Types .................. 81''. Combined .Statement of Reventies:, Expenses and Changes in Retained Earnings - All Proprietary Fund Types., ...... 121: • Combined Statement of. Cash Vl8ws. All Proprietary Fund. Types .... bd.:.�;�i ....... Notes to General Purpose:17inancial Statements.. ..... ­ ........... .............................. 17 • supplementary Information • General Fund: Comparative Balance Sheets: ......................................... ................... m; ........ .......... 47 Statement of Revenues, Expenditures and Changes • in Fund -Balance Budget and Actual... .... ...: : ............... ..................... 48 Special Revenue Funds- Combining Balance Sheet ............................... .................................................. 50 Combining Statement of Revenues, Expenditures and Changes in Fund Balances... 54 Statement of Revenues, Expenditures and Chamzcs • in Fund Balance - Budget and Actual: . State Gas Tax Fund ........................................................................................ ..... 58 • . Arterial Highway Financing Fund ................................. ............................... .... . Federal Adopted Forfeiture Fund ................. .......................................... _ 59 60 . Tide and Submerged Land Fund. ........... ............................................................ 61 • • Contributions Fund ............................................................................................... .62 E • Circulation and Transportation Fund .............................................. ... ..... ........ 63 • Building Excise Tax Fund ..................................... ...... .......... ..... .... .......... ..... -64 Combined Transportation Fund ................. .......... .... ..... .... .... .... ... ............ .65 Community Development Block Grant Fund.. ... - .... ..... .. . .................... .... .. 66 • AckermanDonation Fund ........................................ ............. ............................... 67 Capital Projects Funds: • Combining Balance Sheet ........ ....... ; ................... I ........ ........................... ................. 70 Combining Statement. of Revenues, Expenditures. and Changes in Fund Balances...... � 72 Expe clitures and Changes Statement of Revenues, n in Fund Balqnce-- Budget and Actual: • Assessment District Fund....::.. .......... I ......... ......... ........ ............ ........ ............. 74 • • Central Library Construction Fund .................. ............. ..................................... 75 Enterprise Funds: Combining Balance Sheet ...... ....... ........................... ......................................... .......78 Combining Statement of Revenues;: Expenses and Changes in *Retained Earning ...... Combining Statement of Cash Flows .... ......... ....... ...... ......... ......... ........ 1..80 82 • Internal Service Funds; • Combining Balance Sheet ............... ........ W., ........ ............. ............. 96. Combining ..StAtement of Pevenuesjxpenscs and Changes in Retained Earnings ..... .�87- Cash ...... ................ .............................. ....... Combining Statement of C Flows ..w ....... ........ ,.Agency Funds.... Combining Balance. Sheet.;. ...... ....M ... 4 ....... ......................... ....... ......... ....... ....... .... 02 • Combining Statement of Changes in Assets and Liabilities ....................... ..................... 9.4. AccOuntt, Groups,........... • General. Fixed Asset Account Group- eneral Fixed Assets by Source...:: -... --General Long Term ..Debt Account Group- Comparative Schec)iile of General Long=Terrn. Debt j ....................... ................... ;TATISTICAL SECTION Unaudited) • Miscellaneous Statistics .... ........................ ............ ................... ....... ........... ........... 99 Governmental Revenues by Source, Last Ten Fiscal Years .............................. ............... 100 Governmental Expenditures by F I unction, Last Ten Fis,cal-Yea*rs ........ ....... ........... 'Estirdated 100 • Assessed and Actual Values of Taxable Tro oerty, Last Ten Fis cal Years ...... 102 Secured Property Tax Levies and Collections Last Ten Fiscal Years ............................... 102 Construction Activity, Last Tien Fiscal Years...:: ........ ................................ 104 • Bank Deposits, Last Ten Fiscal .................................................. 104 Property Tax Rates, Direct and Overta pping Governments, Last Ten Fiscal Years....... 106 Computation of Legal Debt Margin. . .................. - ............................................................... IM • Principal Property Taxpayers as of June 30, 1995 .............................................................. 107 Schedule of Direct and Overlapping Bonded Debt, Last Ten Fiscal Years ..................... 108 • Revenue Bond Coverage, Last Ten Fiscal Years ........................... - ..................................... 109 • ii • • • • • CITY OF NEWPORT BEACH P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 • Honorable Mayor and Members of the City Council City of Newport Beach • Newport Beach, California November 28, 1995 • The Comprehensive Annual Financial Report of the City of Newport Beach for the year ended June 30, 1995 is hereby submitted, as mandated by both local ordinances and state statutes. These ordinances and statutes require that the City of Newport • Beach issue annually a report on, its financial position and activity, and that this report be audited by an, indeendent firm of certified public accountants:. • Responsibility for. the accuracy, completeness and fairness of the data presented, including all disclosures, rests with management. We believe the information presented is accurate in all material aspects, and that it is reported in a manner ' • designed to fairly present the financial position and results of operations of the' various funds, account groups, and component unit of the City of Newport. Beach;:.. • All disclosures necessary to enable the reader to gain an understanding of the City's financial activities. have been included. This report is. presented . in three sections. The Introductory Section, which is • unaudited, contains the table of contents, the transmittal letter, an organization • chart of the City, and a listing of the.City's principal elected and appointed officials. The' Financial Section consists of the independent auditors' report, the general purpose financial statements, notes to the financial statements, and the combining • and individual fund and account group financial statements and schedules. The Statistical Section, which is unaudited, contains selected financial and demographic information, generally presented on a multi -year basis: • The City provides a full range of services to its residents and visitors Resources • used in supplying City services and maintaining operations are classified in three general character groupings: ,Current, Capital; and Debt Service. 'Simply stated, Current expenditures should be presumed to benefit the current fiscal period; • Capital expenditures should,-be, presumed to benefit the current and future fiscal periods; and Debt Service expenditures should be presumed to benefit past, current, • and future fiscal periods. The City utilizes more specific categories to classify expenditures by the function of • the services the City provides, as follows: • General Government: City Council, City Manager, City Attorney, City Clerk, and Administrative Services. • iii 0 • • • Public Safety: Police, Fire, Paramedic, Disaster Assistance, and Marine Safety. • Public Works: Engineering, Construction, and Maintenance of public streets, highways, buildings, parks, and infrastructure; as well as fleet • maintenance and sanitation. • Community 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 Operations for risk management and • fleet maintenance and replacement. DESCRIPTION OF REPORTING ENTITY.. • The Cityof Newport Beach was incorporated September 1, 1906 as a charter city in .... the State of California. The City operates under a Council - Manager form of .. government and .provides the following 'services: public safety (police, fire and • marine), highway.. and :streets, cultural and recreation, public improvements, planning and zoning, utilities, and '.general administrative services. • The fi nancial statements present .the; financial activity of the City of 'Newport Beach (the primary government)' :and The Newport Beach. Public Facilities Corporation, • which is a component` unit of the' City. The component unit discussed below'is irichided in the City's reporting entity because of the significance of its operational or financial relationship with the' City, although this .entity is a legally separate • organization. However, the. City of Newport.Beach elected'officials have continuing full or partial accountability for fiscal matters of this entity.. The financial reporting • entity consists of: (1) the City, (2) organizations for which' the City. is. financially accountable;- and (3) organizations for which the nature` and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. • An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component • 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 • 0 • 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 9, 1992, for the purpose of assisting the City of Newport Beach in the financing of public improvements, • including a public library. The Corporation is governed by a Board of Directors comprised of seven individuals appointed by the City Council of the City of Newport Beach. The Corporation's financial data and transactions are included in • the debt service fund type,. capital projects fund type and general long -term debt account group. • Organizations Other than Reporting Entity. 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 component unit and their financial information is not .included in this report. • LOCAL ECONOMIC CONDITION AND. OUTLOOK Although the City's: long.: term tax %base is broad and diverse, there are significant • short -term fluctuations in all. City revenues, including taxes. The primary, revenue sources include property. taxes and sales taxes. There are a number of major: ;hotels located within the City which produce a transient occupancy tax. In addition, the City ow.ns.various properties which generate, revenue; and investment of temporary cash reserves provides.limited. interest, earnings.. Other, smaller sources of revenue are numerous and highly varied. Economic activity in the City and the region. is notably slower than it was five years • ago. The long-term outlook is favorable, and some elements of recovery are being.' seen.. However, the current climate remains weak. Commercial and residential • development within the City continues to generate new revenues, but at a reduced rate. This also results in additional` costs to. the City as it.continues to provide,,the highest quality services to -its residents and commercial establishments. Because of • the City's outstanding beaches and harbor, Newport Beach attracts as many as 100,000 tourists a. day. This tourist' population helps to maintain the City's strong • economic base, but it also requires additional. expenditures for routine public services. . Overall, property values in Newport Beach have declined over the past few years, but the City's property tax base remains substantial. However, recent budget actions by the State of California have had a significant and ongoing adverse impact on the • City's finances, especially property taxes. Revenues continue to fall well short of long -term trends, and corresponding adjustments to appropriations have been • necessary. Approximately 14% of the work force has been eliminated, and significant reductions have also been made in other areas. v • 0 The City's fiscal posture has also been affected by several non - reoccurring • expenditures, as well as other developments. The City took advantage of an opportunity to improve the parking situation on Balboa Peninsula by acquiring a • piece of commercial property and converting it to parking use. Although some revenue will be generated by this facility in the long run, the immediate impact on the fund balance of the General Fund was a previously unplanned expenditure of • $889,000. Monetary settlements arising, from litigations an unfavorable combination of decisions concerning aerospace industry sales tax rebates, and implementation of • the Americans with Disabilities Act have or will represent cash drains to the City of some significance. In addition, City reserves, and operating funds were impacted by the investment losses and subsequent bankruptcy. of Orange County. , • Although. the City's overall financial condition remains quite strong, the. aggressive • response to these developments Will be sustained. The City considers it essential to maintain a healthy financial condition. Policy changes which .affect :both expenditures and revenue source. . s have been instituted, and more such actions are • likely. During this fiscal,:year, the City completed the largest_bond issue in its history,:. • Water Revenue Bonds. in .the: `amount of $17.1 million were issued to provide:, funding for the sty s Groundwater Development Project. This project will result in ;: • new wells: bemg :dulled .at inland sites in another ` city, with the water then. being.,.: piped to Newport Beach Actual . spending for the project during this fiscal year was ` $3,184,251,.. To put jthat-in perspective, total, spending on capital projects during the ;: • :year was $14,884,223. In: addition, a Tax Revenue: Anticipation Note (IRAN) was issued early in the fiscal year. (It was refunded. without re -issue shortly, after the fiscal year ended.) Aside.; from small issues to provide funding for placing utility services underground in • several special assessment districts formed for that purpose,'there has been no other new debt financing: . During the 1994- 95,fiscaL.year, actions initiated in prior years to reduce expenditures and expand selected existing revenues were again continued. In addition, in order • to partially offset the permanent loss in the revenue structure resulting =from State cuts, some new local revenue sources were identified.. Special operating budget reductions were ; again iden tified and subse m quently impleented . by each • department. The workforce was reduced further; and some full time positions were replaced by part time positions. The number of major fiscal variables which still • contain a significant degree of volatility remains unusually high. Although it is uncertain at this time whether additional reductions or other corrective actions will be required in the near future, it is clear that substantial growth in City services or • functions over the next few years is highly unlikely. • vi • • 0 • MAJOR INITIATIVES • For the Year. Some of the budget reductions resulted in City programs being less aggressive than originally planned, but there was no delay in effecting repairs, • improvements, or other activities of a priority nature. As a practical matter, larger capital improvement projects generally encompass more than one fiscal year from design to construction, so these. actions did not hamper their completion. Street, • highway, and other transportation , related projects continued to be the functional area receiving the . greatest emphasis. In addition, the City continued implementation of the Paramedic Subscription. program, which was initiated in . 1993 -94. The program was designed to provide an improved level of service to the community that is self- supporting. A number of projects begun in prior years were • also still underway in fiscal year 1994 -95. • For the Future. As mentioned above, the economic slowdown and resulting revenue shortfalls for the City have resulted in delay or 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 first year. • 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 extensive sidewalk, curb, and gutter repair/ replacement,,.... • replacement of streetlights,. park and athletic. field improvements, and various other " street and highway repair projects. Replacement of mains and other water and • wastewater improvements will also be moving forward. Work will also continue on the final portions of initial implementation of the • Geographic Information System, with, emphasis on completing the computerized City base map and upon further development of.. the Building Department "Permits" tracking system Development of the relational - database and its design • configuration will continue during the next fiscal year. The. City's primary micro- computer network is also completing a much needed renovation.' The City ?;will also • continue to maintain its high level of safety programs through the Police, Fire, and Marine Departments. The City's social programs will continue to be coordinated by the new Community Services Department which was formed by combining the • functions of the Library and Parks, Beaches, and Recreation Departments. Full implementation of the City's newly approved administrative reorganization • was anticipated immediately after year end. The new organization combines the Fire and Marine Departments, Public Works and Utilities Departments, Building • and Planning Departments, and Finance and Personnel Departments. Other structural realignments were also part of the change. Modification of the accounting and other systems to accommodate the new organization was underway at year end. vii • 0 FINANCIAL CONTROLS AND PROCEDURES • Internal Control Structure. Management of the City is responsible for establishing • and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate • accounting data is compiled to allow.:for the .preparation of financial statements in conformity with generally.. accepted: accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that .these • objectives are met. The;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 benefits by management.;,- . of costs and requires estimates and judgments 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 . are in. place and updated periodically. 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 have been. • rewritten,`and Standard Operating Procedures for the. Accounting and Purchasing, Divisions have been substantially revised and updated. All controlled property has been inventoried and tagged. • Single Audit AS a:re6pient.of federal, state. and county financial assistance, the City. is required . to undergo an' annual :audit in conformity with the provisions of the . Single Audit Act of.1984::And the U.S. Office of Management and Budget Circular A -, 128, Audits of SjAi and Local Governments.' As part of the ,City's single audit, tests', : • Ate made to`deteimine the`adequacyo f the.infiernal control structure, including that; portion related to. federal financial assistance`progian s, as well as to''determine that1 applicable • theCity has complied with laws and regulations. The results of the city s;' sirig-le audit for the fiscal year ended June 3Q; 1995, provided no instances of material weaknesses in the internal control structure or :significant violations of applicable . laws and regulations. The information related to the single audit, including : the Schedule-, of Federal. Financial Assistance,:;findings_, and recommendations;' and independent auditors' reports on the internal control structure and . compliance • with applicable laws and regulations are included in a separate report. " Budgeting Controls- and Changes. The City of Newport Beach,., maintains budget controls. The objective;-of these ' controls is to ensure compliance with legal provisions embodied in the annual appropriated ; bud-get., ;approved by the City . Council. Budget control is :maintained at the fund :_level, or project level in the governmental fund types. The City maintains an encumbrance accounting system as one method of accomplishing budgetary control. Where encumbrances indicate • an overdraft of the departmental or project budget, purchase orders are not released until an appropriation adjustment is made to ensure that adequate funding is • available. The City's Budget Policy was completely rewritten and implemented this fiscal year. viii • • 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 liabilities over a five year period which started in 1993 -94. During the 1993 -94 fiscal year, the City began to administers plan, and budget for the acquisition, • maintenance, and repair of major rolling stock through an. Equipment Internal Service Fund. Workers' Compensation and compensated absences have now been • added to programs managed through this fund. • FINANCIAL INFORMATION • The information in this section pertains to the City's general governmental operations. General governmental function finances are administered through .the General, Special Revenue,, Debt Service, and Capital Projects' Funds. • Revenues. The following schedule (expressed in thousands) presents a summary of . • General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund revenues for the fiscal year ended June 30, 1995, and the percentage of increases and decreases in relation to the Three previous years' revenues. • Fiscal Year 1994 -95 Revenues Revenue Source Percentage Cuinulativer • Amount Percent of Change, -' Change jQQQZ.. Total From FY Since FY.... 1993 -94 1990 -91 • Taxes i $39,720 55.040/6 -.22% Licenses, Fees, & Permits '12,198 3.05% 12.78% - 23;720/6 • Intergovernmental $10,704 14.84 %: 19.03% Charges for Services $5,110 7.09% 65 %° 6.70% Fines & Forfeitures $3,157 4.38% 16:67 %. 1.350% • Use of Money & Property $9,676 13.42% 11.72%6. Miscellaneous 1 35 2.13% - 28.27 9/6 - 56.90% • Total $72,100 100.00% 3.99 %° - 4.85% • The fact that the City experienced a significant net decrease in total revenue over the past five years is representative of the overall economic decline, as well as State - level budget actions which had the effect of significantly reducing certain tax • revenues previously allocated to the City. More information concerning revenues over the past ten years is contained in the Statistical Section of this publication. • ix • Y W U Y C Y V Y 6 Percentage Change in Revenue ■ Fines�� ■ Use of ■ Miscel eltures. � & Pro7Perty 7.00°/6 Expenditures. The following schedule (expressed in thousands) presents a summary of general governmental expenditures for the fiscal year ended June 30, 1995 . and the dollar value of the increase or decrease during the past three years. • • • • • • • • • • • • • • Fiscal. Year 1994 -95 Expenditures, 95 • Current Change Change Amount .. Percent of Since FY Since FY Expenditure Total 1993 -94 1990 -91 General Government $5;505. 7.56% $898. ($1796). Public Safety $33,390 45.85 ' $1,060; $6,478 • Public Works $14,383 19.75 % ($636) ($2,864) Community Development $ 3,337 4.58 0 -. $168 $31392- Community Services $6,137 8:43% $226 ($1,446) • Capital Expenditures $8,524. 11.70% ($5,082) °" ($10,975) Debt Service JL550 2.13 0 137 1 312 • Total Expenditures $72,826, 100.00% ($3,229) ($5,599) • 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. • 1. While overall spending 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. xi 0 0 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 distortion in those figures. 1991 -92 was relatively • "light" in liability expenditures. 3. Certain expenditures which had been classified as General Government in • 1991 -92 were reclassified as Community Development thereafter. Similarly, expenses from the Federal Forfeiture fund had: previously been classified as • General Government, but they have since been reclassified as Public Safety. Therefore, the - 'magnitude of the relative '.changes in all .three of these expenditure categories is somewhat less than it Would.,appear. from the raw • numbers above. 4. The decrease in capital outlay was due to completion / winding down of some major projects, combined with the .intentional reduction. in this area: :as an interim,; short term response to revenue decreases. II is not the City's intention • to sustain capital outlay expenditures at this reduced level. General Government Expenditures by Function • (Fiscal Year 199+ -95) 7% 0 ■General Govemment •20 ■Public Safety t20/6 .' ■Public Works • ■ connnunity Development ■Community Services • ■Capital Expenditures ■DebrService $3b • 5% o+y° • Enterprise Operations. The City had three .,enterprise operations at June 30, 1995: Water, Wastewater, and Cannery Village'I'aring. An analysis of the City Enterprise • Fund operations indicates the following results for fiscal year 1994 -95: • The Water enterprise activity reported a net loss of $855,693. Actual operations • produced a net surplus of $1.4M, but this was more than offset by non - operating expenses. Most of these are non - reoccurring. • xii 0 • • The Wastewater enterprise activity reported a net loss of $260,120. The Wastewater Fund finished up the year with retained earnings of $2,702,682. • • The Cannery Village Parking enterprise operation reported net income of $95,263 • for the fiscal year ended June 30, 1995, almost exclusively from operating income. Defined Benefit Pension Plan., The City contracts with the California Public • Employee's Retirement System (PERS) for certain retirement, disability, death and survivor benefits for full -time employees. The annual actuarial valuation by PERS changes from year to year, and the City's contribution rates are modified accordingly. Deferred Compensation (Retirement) Plan for Part -Time Employees. In addition to • the PERS retirement plan for full time City employees, the City contracts with the Public 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 City, contributing a matching 3.75 percent to this retirement system. The City's contributions for each employee .(and interest earned by the • accounts), are fully vested immediately. Deferred Compensation Plan for Full -Time Employees. In addition to the Deferred Compensation Plan. for . part -time employees, the City offers a Deferred Compensation Plan for full -time employees which is designed to supplement the:.. • employee's PERS Retirement Plan. The City's Deferred Compensation Plan for full time employees is authorized under Internal Revenue Code Section 457. All full-:.. time employees 'are. eligible to participate in this plan on a voluntary basis.. • Cash Management. It is'ahe 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 or jeopardizin m g `liquidity requirements. Idle funds are invested in accordance with the Government Code and a formal investment policy approved • bythe..City he Council. The policy, which is reviewed and updated annually, allows investments in a variety of specific 'instruments, as well as certain state, county, and private sector investment pools and asset management services. Certificates of • deposit, demand deposits, bankers acceptances, U.S. Government and Agency Securities, repurchase . agreements, commercial paper, and. the State's Local 'Agency Investment Fund are examples. Due to the fact that the volume of funds available for investment has decreased • over the past few years, 'as well as the fact. that interest rates have remained relatively low, investment earnings are not now as significant a portion of City revenue as they have been in the past. In addition, the portion of those earnings • allocated to the General Fund has decreased in relation to the earnings of other funds. This is due to the smaller daily cash balance in the General Fund. The City's • plan to reconstitute reserves will reverse this trend, but it is not likely to have a significant favorable impact in the immediate future. • xiii • During the first part of this, fiscal year, the City still had some of its reserves with • Orange County for investment with the Orange County Pool. As mentioned above, some of the losses resulting from the failure of the Pool and the subsequent County • Bankruptcy were absorbed by the City. These are explained in detail in Note 18 to the General Purpose Financial Statements in the Financial Section of this Report. • The City's current investment strategy is to.normally place.most of the funds with four private sector investment management firms.:.Each of these intermediaries is • constrained to an investrnent program at least as restrictive as the policy governing the City's direct investments. Additionally; with regard to the private sector firms, all cash or securities managed by them on the City's behalf are ;held by well • established and highly ;reputable third party custodians. Smaller,' more liquid portions. of the portfolio are invested directly by City staff or placed with the State Pool (LAIF). . Debt Administration. At year end, the City had a number of debt issues outstanding. • These issues, net. of applicable unamortized discounts, included certificates `of participation of $7,235,000; notes payable of $3,019,239; and capital leases of $248,296. :Standard ;:and Poor's Corporation,' - assigned. a 'AA-" rating to the certificates of. • participation During the year; the City entered into ,a $53,865 capital lease agreement to finance the, upgrade of fi nancial inanagemerit and data processing 'systems equipment and : . software ;. a $110,223 capitM. lease agreement to finance the acquisition of a street .' • sweeper; a $119,97$ capital .aease agreement to finance the acquisition of a crane, and.'<; a $223,570:capital lease agreement to finance the acquisition of three trucks. • Risk Management.`. The City maintains a risk management program which is a combination of . self- insured. retention, excess insurance, and written policies.. As • part: of this program, resources are. now being set aside iii the Insurance Reserve Fund (as opposed o the General Fund) to meet potential' losses. The City was previously self insured for all types of losses, including workers' compensation and • liabihty;,claims. This was one of the most volatile .and demanding aspects of managing.the City's affairs.. On July 1, 1994, the City purchased $10 million of • liability-insurance with .a self insured retention of'$1 million. This-,.c fitinues in force today. Further administrative and policy adjustments in the area of Risk Management are anticipated. . General Fund Balance The fund balance of the General Fund decreased by $1.4 . million during the fiscal year ended =June 30;,1995, before the`transfer of this balance to the Contingency Reserve as required by City policy: This decrease was due largely to the opportune but unplanned expenditure $900,000 in Off - Street Parking • Reserves, as explained above, and the loss or impound of over $1 million in City funds due to the Orange County Bankruptcy. Without these two events, reserves would actually have increased. Further decline in reserves during 1995 -96 is not • foreseen at this time. • xiv E • OTHER INFORMATION • Independent Audit. The City Charter and State Statutes require an annual audit by independent certified public accountants. Accordingly, this year's audit was • completed by KPMG Peat Marwick LLP. In addition to meeting the requirements set forth in the City Charter, the audit also was designed to meet the requirements of the federal Single Audit Act of 1984 and related. OMB Circular A -128. The • independent auditor's. report on the general purpose financial statements and combining and individual fund statements and schedules is included in the Financial Section of this :report, which immediately follows the Introductory • Section. The independent auditors' reports related specifically to the single audit are provided under separate cover. • Awards. Fiscal year 1990 -91 was the first time in the City's history that it prepared a Comprehensive Annual Financial Report. It was therefore particularly gratifying . that the Report received both state and national awards for excellence in financial reporting. The City was fortunate.to receive both awards each year since. The Government Finance Officers Association of the United States and Canada (GFOA) awarded.a Certificate of Achievement for Excellence in Financial Reporting • to the City of Newport Beach for its Comprehensive Annual Financial Report for . the fiscal year ended June 30, 1994.. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation • of state.and local government financial reports. • In order :to be awarded a Certificate of Achievement, a government unit publish an easily: readable, and efficiently organized comprehensive annual financial . report, whose contents satisfy both generally accepted accounting principles an,, d 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 submitting it to GFOA. • The California Society of Municipal Finance Officers ( CSMFO) is a state organization • which sponsors extensive training and emphasizes high standards in all aspects of municipal finance operations, including;' financial reporting. Asa 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: the CSMF0 Outstanding Financial Reporting . Award. We will be submitting the report to CSMFO for consideration again this year as well. • xv 0 0 xvi • 0 COVER AND DIVIDER PAGES • The divider pages of this report contain examples of some of the capabilities of the City's Geographic Information System. Further information about this system is contained on the inside of the front cover. • ACKNOWLEDGMENTS Preparation of this report could not have been accomplished without the efficient . and dedicated services of a number'of personnel. It would be impossible to name them all. Virtually everyone in the Accounting ,Division and the Print Shop contributed to the project. _ In addition, members of the Finance Department would like to thank the Mayor and City.Council for their interest and. support in planning and conducting the financial operations of the City in a responsible and progressive • manner. We would also like. to thank our auditors, KPMG Peat Marwick, for their time and assistance in the preparation of, the report. This report was prepared, assembled . prinw& and bound by City. employees. • k6vfn J. M4 Dennis C. Danner Finance Director • City Manager'.. 0 xvi • 0 • • • • • • • • • • • • • • • • • • • • • Certificate of Achievement for Excellence in Financial Reporting Presented to City. of Newport Beach, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended Line -q0l T 494 A Certificate of Achievement for Excellence in Financial Repod ing.is presentedby the Government Finance Officers Association of the United States and Canada to government units: and public employee retirement xvii Executive Director 0 XVlll • • • .. as �.`yv • Norma J. Glover Council Member + 4e [ M e • Jean Watt Council Member • Wanda Raggio • City Clerk NEWPORT BEACH CITY OFFICIALS City Council John W. Hedges Mayor Jan Debay Mayor Pro Tern �0 t h L u Dennis D. O'Neil Council Member Principal Administrative Officers Kenneth J. Delino Deputy City Manager Thomas. C. Edwards Council Member John C. Council Robert H. Burnham City Attorney • Raimar Schuller ....................................................... ............................... Building Director LaDonna Kienitz ....................................... ............................... Community Services Director • Dennis C. Danner ...................................................... ............................... Finance Director TimRiley ...................................................................... ............................... Fire Chief David E. Niederhaus ....................................... ............................... General Services Director • Tony Melum ................................. ............................... I ................ Marine Director (Acting) Duane K. Munson .................................................. ............................... Personnel Director BobMcDonell ............................................................... ............................... Police Chief Don Webb ....................................................... ............................... Public Works Director • Michael Sinacon ................. (Acting) ........................... ............................... Utilities Director Actin 40 xix CIVIL SERVICE BOARD FEBUILDING CODE BOARD OF APPEALS II PLANMNC COMMISSION II III III III III POLICE III Admi„ao-adan ILL III Tm(fic I I I Parling/Animil Co,urel III III III r— PLANNING II Qurmt Plam 8 Projctts II II II I BL — I I III ELECTORATE III MAYOR & COUNCIL P.B.&R. COMMISSION CITY CLERK T CITY ATTORNEY LF I FINANCE ActOnntinft Rcvenuc P,uchasing Dam Processing CITY MANAGER DEPUTY FIRE Opvadow Pn v ndan &neHg.n 4 . N.i Services Haardow Mvs <nila .PUBLIC WORKS Endaltt -g Project Mmagcm<N ' Tn�'tPicw way waama,aru Elstnral Tdaommuoiea 01.S Project OA 8 Gaa PERSONNEL Pcrewn<I AdndnieaaGOn Hcmfit Menag......., Rck M¢nu�gemenr labor A<hdow ELECTED COUNCIL APPOINTED COUNCIL BOARDS & COMMISSIONS APPOINTED KiM ARTS COMMISSION I II LIBRARY BOARD II II II II MARINE I.I Dttan �r<Rwrd, I I idcmnda Oyyoarianss Bilboe Yech Basin I I ParldnR Tura I I II II II COMMUNITY SERVICES Adwni,lndon — � I rns 8 Cdwrc library Swims Acve don I Sc11iOR PIOSril06 I I GENERAL SERVICES I Parka and Parkaaya — J Building Field 8 Pquipmenr Mauamnan. Tnffic Sigw BMarkinga ' Rcfwe/Itc ycW�g DEPARTMENTS • • • • • • • • • • • • • • • • • • • • FINANCIAL SECTION Property Owner Notification RESIDENT 1309 ASHFORD LN NEWPORT BEACH, CA 92660 RE$IOENT 1319 ASHFORD LN NEWPORT BEACH, CA 92660 RESIDENT 1323 ASHFORD LN NEWPORT BEACH. CA 92660 RESIDENT 1600 COMMODORE RD NEWPORT BEACH, CA 92660 RESIDENT 1801 COMMODORE RD NEWPORT BEACH, CA WSW RESIDENT 1807 COMMODORE RD NEWPORT BEACH, CA W660 RESIDENT 1808 COMMODORE RD NEWPORT BEACH, CA WSW RESIDENT 1817 COMMODORE RD NEWPORT BEACH, CA 92650 RESIDENT 1818 COMMODORE RD NEWPORT BEACH, CA 92880 RESIDENT 1623 COMMODORE RD NEWPORT BEACH, CA 92660 RESIDENT 1826 COMMODORE RD NEWPORT BEACH, CA 92860 RESIDENT 1829 COMMODORE RD NEWPORT BEACH, CA WSW RESIDENT 1830 COMMODORE RD NEWPORT BEACH, CA 92660 RESIDENT 1837 COMMODORE RD NEWPORT BEACH, CA WOW RESIDENT 1810 COMMODORE RD NEWPORT BEACH, CA 9266D RESIDENT 1112 ESTELLE LN NEWPORT BEACH. CA92660 RESIDENT 1118 ESTELLE LN NEWPORT BEACH, CA 92660 RESIDENT 1126 ESTELLE LN NEWPORT BEACH, CA 92860 RESIDENT 12M ESTELLE LN NEWPORT BEACH, CA WSW RESIDENT 1600 GLENWOOD LN NEWPORT BEACH, CA 92860 RESIDENT 1801 GLENWOOD LN NEWPORT BEACH, CA 92660 RESIDENT 1805 GLENWOOD LN NEWPORT BEACH, CA 92660 RESIDENT 1808 GLENWOOD LN NEWPORT BEACH, CA 92880 RESIDENT 1811 GLENWOOD LN NEWPORT BEACH, CA WSW RESIDENT 1810 GLENWOOD LN NEWPORT BEACH, CA 92860 RESIDENT 1817 GLENWOOD LN NEWPORT BEACH, CA 92860 RESIDENT 1823 GLENWOOD LN NEWPORT BEACH, CA 92660 Property Owner Notification. The GIS is used by various city departments as a tool to notify residents of events that may affect their property. In this example residents whose lots are within 300 feet (lighter shade) of the single residential lot (darkest shade) would be notified The GIS uses the basernap to locate lots within the defined leach radius and passes the information to an Oracle database where a mailing list is compiled. . KPMG Peat Marwick t_LP Center Tower • 650 Town Center Drive Costa Mesa, CA 92626 • INDEPENDENT AUDITORS' REPORT • The Honorable Members of City Council • City of Newport Beach, California: We have audited the accompanying general purpose financial statements of the' City of Newport Beach, . California (the City), as of and for the year ended June 30, 1995, as listed in the foregoing 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 and Government. Auditing . Standards issued by the Comptroller General of the United States. Those standards require that we plan • and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the general purpose financial statements. M audit also ditcludes. . • assessing the amounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial., statements referred to above present. fairly, in all material • respects, the financial position of the City of Newport Beach; California, as of June 30, 1995, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. • Inaccordance with Government Auditing Standards, we have also issued a report dated October 25, 1995 on • our consideration of the City of Newport Beach's internal control structure and a report dated October. 25, 1995, on its compliance with laws and regulations. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements • taken as a whole. The accompanying combining and individual fund and individual "account group financial statements and schedules listed in the 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. This additional information is the responsibility of the Management of the City. Such additional 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 when • considered in relation to the general purpose financial statements taken as a whole: The statistical data listed in the foregoing table of contents is presented for purposes of additional analysis • and is not a required part of the general purpose financial statements of the City. Such additional information has not been subjected to the auditing procedures applied in the audit of the general purpose financial statements, and accordingly, we express no opinion on it. Il P m p Ptak j/Vl",t -fA G. 'L P • October 25,1995 1 • 10 .roe, rrm ar ✓. ,,eId �e11 MI-6 Gcertleie: 0 • • • • • • • • • • GENERAL PURPOSE FINANCIAL STATEMENTS Typical Parcel Level Information �, 7w, � Counal Xeprewwaiwe. john Car, jr Fire Hydrant Report Type: Jones Main Size: 6" Last Maint: 30- Mar -95 Static Pressure: 65 psi Year Installed: 1969 .J� Land Use: Slagle Family • • • • • • • • • • • • • v L N O R T H Srolz P - SA ryM1� COMBINED STATEMENTS 9 / 1 dippp lhh)f .�5 Jdk t�, pi' ii'�d9�� 2 14 el VW911U. C \' \�r 411 Light Level Contours. A light meter was used to capture a grid of point data values. The GIS generated contours of equal light values (similar to elevation contours on a topographic map). The contours were used to produce the above map indicating the distribution of light near the Newport Pier at night. Pockets of darkness are indicated with dark grey and areas of bright light are indicated with orange to yellow. The GIS can now be used to generate a model of how to redistribute safety lighting elements to achieve more uniform illumination of the area. 3 4 • CITY OF NEWPORT BEACH Combined Balance Sheet - All Fund Types and Account Groups • June 30, 1995 Governmental Fund Types • Special Debt Capital Assets and Other Debits General .. Revenue Service Projects • Cash and investments (Note 2) $9,106,602.. $ 12,721,572 $ 622 $ 1,516,242 Accounts receivable and accrued revenues 1,084,732 380,870 . 9;718 • Lease Receivable 962,000 Due from other governments (Note 18) 2,429,237 1,447,472 Allowance for doubtful accounts (Note 18) (476,565) . (365,699) • Due from other funds.(Note 11) 1,366,962 Deposits with other agencies ' Inventories of materials and supplies, at cost 198,441 • Restricted assets - cash and investments (Note 2) 4,515,000 550,863 - Other assets 13,560 69,329 Notes receivable 200,000 • Fixed assets'(Note 3) Amount available in debt service fund Amount to be provided for payment • of general long-term debD Total Assets and Other. Debi s $ 18.43 7,909 $ 15,215,544 $ 561,193 $ 1.516,242 • Liabilities Fund ;Equtty and,Other Credits Liabi: Accoucpunls payable and. accnied liabilities: $. 1,717,922. $ 610;510 $ 15,523' • Acbrued.'payroll 1,700,579 1„390 Due to other funds (Note 11), Deferred revenue 296,87t, 691;811 1,161,166 . Dueab bondholders (Note 5)" Due to. others Deposits 1,785,998 164,412 • Deferred compensation (Note 7) Current portion of debt (Notes I. and 4) Long debt 4) 4,452 292 `. • -term (Note Total Liabilities 9,953 662 ` 2,6-29,289..: 15,523: ' Fund Equity and.Other Credits: • Contributed capital (Note 12) Investment in general fixed assets Retained earnings (accumulated deficit): • Unreserved Fund balances (Note 13): Reserved 2,739 819 1,076;582 $ 561,193 32,949 • Unreserved, designated x5,744,42 12,015,819 367,770 Unreserved, undesignated (506,146) 1,100,000 Total Fund Equity and Other Credits 8,484,247 12,586,255 561,193 1,500,719 • Total Liabilities, Fund Equity and Other Credits $ 18,437,909 $ 15,215,544 $ 561,193 $ 1,516,242 . See Accompanying Notes to General Purpose Financial Statements. • 4 • • • 5 Proprietary Fiduciary • Fund Types Fund Type Account Groups General General Internal Fixed Long -Term Totals (Memorandum Only) • Enterprise Service Agency Asets Debt 1995 1994 $ 26,191,705 $ 816,318 $ 22,906,164 $ 73,259,225 $ 61,539,481 3,084,917 49,934 4,610,171 4,578,064 962,000 1,022,417 2,739,911 6,616,620 3,593,477 (2,739,911) (3582,175) 1,366,962 ^' 2,164,438 631,284 `631,284 631,284 • 44,110 154,054 396,605 378,456 1,739,505 6,805,358 646,190 82,829 70;359 • 200.000 32,092,222 3,742,393 $ 73,352,063 109,186,678 103,414,522 $ 561;193 561,193 668,754 '.. • 9,9411342 9,941,342 10,550,624 . $ 63;152,459 $ 5,393.9W.. $ 22,906,164 . $'73,352,063 $ 10,502,535 $211,038,092 $186;256,066, • $ 1,796,089 $ 192,879 $ 4,332,923 $ 4,540,791 .. 49,644 118,362 1,869,975 1,119,505 • 661,822 13,329 1,366;962 1,458,037 2,164,438 .1,476,469 $ 299,297 299,297 325,127 539,177 539,177 84,888 . 97,843 2,048,253 2;493,679 22,067,690 .. 22,067,690 19,117,796 ::: 1,280,458 3,249,273 81982,023 2,71205 • 16,280,000'. 14,438,391 $ 10,502,535 "41,220,926 28,847,243 20,165,856 18,012,234 22,906,164 10,502,535. 84,185,263 62,882;211 • 13,899,327 4,097,648 17996,975 17,951,395 $ 73,352,063 73 352,063 70,452,855 • 29,087,276 (16,715,899) 12 371,377 13,036,050 • 4,410,543 2,701,149 18,128,017 21,486,810 593,854 747,596 • 42,986,603 (12,618,251) 73,352,063 126,852,829 126,375,855 • $ 63,152,459 $ 5,393,983 $ 22,906,164 $ 73,352,063 $ 10,502,535 $ 211,038,092 $ 189,258,066 • • 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, 1995 Revenues: Taxes Licenses, fees and permits I ntergovem mental revenue Governmental Type Funds 3overnment Special Debt General Revenue Service $. 39,719,830 14,382,640 Y,112;873 $ - 1,085 313" 406,624 7,113,785 3,357,122 414,549 4;884,630 224,883 2,889,547 3,067;817- 88,713 5,067,329 ' 4,558,919 $ 36,047 144,340 510,006 140,194 360,652 % - 4,771,562 61471,256 9,825,006 36,047 -. r (Under) Expenditures 3overnment 5,152;151 353,459" fety 33,163, 911 226,011 irks 14,382,640 ity development., 2,930,048 406,624 ity- services.;:' -;: .. 5,722,113, 414,549 snditures 5;568,817. 2,889,547 e' retirement (Note 4) 294 5301 341,178 nd fiscal charges .: 184,907 140,194 zpenditures,. ` 67,399,117 4,771,562 > (Deficiency) of Revenues r (Under) Expenditures (5,927,861). 5,053,444 135,000 38) Other FinancingSources (Uses): Operating transfers in 5.296.022 ` 51.354 589.485 Operating transfers out Proceeds from long =teim debt (Note 4) Proceeds from sale of fixed_ assets Total Other Financing "Sources (Uses). Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (1,446,571) Fund Balances, July 1 9,930,818 Fund Balances, June 30 $ 8,484,247 See Accompanying Notes to General Purpose Financial Statements. 0 (1.058.339) 13,644,594 $ 12,586,255 (107,561) 668,754 $ 561,193 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Capital Totals (Memorandum Only). ., . Projects 1995 1994 $ 39,719,830. $ 39,809,139 2;198,186 1;948,855 $ 233,093 10,704,000 8,993,289 5,109,513 5,077,369 3,156,530 2,706,194 14,131. 9,676,426 8,660;599 285,674 940,020 .: 1,070,892 360,702 1, 0681675 532,898 71,865 207 .. 69,335,012 . 5,505,610 4,607,009 331389,922 32,330,338: 14,3821640 15,018,898 ..3,336,672 3,406,712 61136,662 5,910,752 65,409 .81523,773 '13,605,703 % 770,708 ', 509,544 779;586 665;631 65,409 72,825,571..,..,.- 76,054,587 467,489. (960;366) (6,719;575) 234 981 . 6;171,842 6,213,305 (701) (711831266), 53,865 ` 116,682 7,223 1,027,130 234,280 (950,336) -,;. 2,451,090 701,769 (1,910,702) (4,268,485) 798,950 25,043,116 29,311,601 • $ 1,500,719 $ 23,132,414 $ 25,043,116 • • 7 CITY OF NEWPORT BEACH . Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual All Governmental Fund Types • For the Year Ended June 30, 1995 • 8 . General Fund Variance • Budget Actual , (Unfavorable) Revenues: Taxes $ 39,481,330 $ 39,719,830 $ - 238,500 • Licenses, fees and permits 1,222,159 1,112;873 (109;286)_. Intergovernmental revenue ° 6,676 886 7,113,785 436,899 Charges for services 5,555,837 4,884,630 (671,207) Fines, forfeitures and penalties 3,025,000 3,067,817 42,817 Revenue from use of money and property 5,019,575 5,067,329 47,754 Contributions, . 560,326 144,340. (415;986) • Other 244,747 360,652 115,905 Total Revenues . 611,785,860. 61,471,256 (314,604) • Expenditures: ' Current General government. 4,629;676 5,152,151 (522475) • Public Safety ....32 894,256 33,163,911 (269,655) Public works 14,622,092. 14,382,640 239,452 C6mmunity:develcipm6nt 2,873,761 2,930,048 (56,287) • Community services 519501578 5,722,113 228,465 Capital expenditures 9,070 604. 5,568,817 3,501,787 • Dept Service Principal Retirement (Note 4) ..294 530 294,530 Interest and fiscal charges 28,115 184.907 (156',792) • Total Expenditures 70,363,612 ` 67,399,117 2,964,495, Excess (Deficiency) of Revenues • Over(Under) Expenditures.. (8,577,752) .. :(5,027,861) 2,649,891 Other Financing Sources (Uses) Operating transfers in 518021085 5,296,022 (506,063) • Operating transfers out (589,485) (875,820) (286,335) Proceeds from tong term debt 53,865 53,865 Proceeds from sale of fixed assets - 25,500 7,223 (18,277) • Total Other Financing Sources (Uses) 5,238,100 4,481,290 (756 810) < • Excess (Deficiency) of Revenues and Other Financing Sources, Over (Under) Expenditures • and Other Financing Uses (3339652) (1,446,571) 1,893,081 Fund Balances (Deficits), July 1 9,930 818 9,930,818 • Fund Balances (Deficits), June 30 $ 6,591 166 $ 8,484,247 $ 1,893,081 See Accompanying Notes to General Purpose Financial Statements. • • 8 . • is IM Special Revenue Funds (Note 14) Debt Service Fund Variance Variance Budget Actual (Unfavorable) Budget Actual (Unfavorable) • $ 1,096,348 $ 1,085,313 $ (11,035) 4,235,450 3,301,017_ - (934,433) • 192,200 224,883 32,683 400,000 88,713 (311,287) 4,410,000 4,550,902 140,902 $ 36,047 $ '36,047 • 1,149,647 510,006 (639,641) 3,100 50 (3,050) • 11,486,745 9,760,884 (1,725,861).. 36,047 36,047 • 347;699 (347,699). 268,599 226,011.. 42,588 • 823,024 375,.463.%:.. 447,561 . 525,345 .. 414,549 110,796 . 13;649,057 2,889,547. 10,759,510 • 103,178 341178: (238,000). $ 1.35,000 135,000 140,202 1.40,194%.. 8 454,485 454,485 •15,509,405, 10,774,764 : .: 589,485 589,485 • (4,022,660) 5,026;243 .9;048,903 = (589,485) (553,438) 36,047 .` • 51,354 51,354 589,485 589,485 90 (5,867,9) (6,163,137) (275,228) .(143,608). (143,608) • (5,887,909) '(6,111,783) (223,874) 445,877 445,877 • • (9,910,569) (1,085,540) 8;825,029 (589,485) (107,561) 481,924 13,441,228 13,441,228 668;754 668,754 • $ 3,530,659 $ 12,355,688 $ 8,825,029 $ 79,269 $ 561,193 $ 481,924 (Continued) • is IM 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, 1995 P 10 • Capital Projects Funds (Note 14) Variance • Budget. Actual (Unfavorable) Revenues: Taxes • Licenses, fees and permits Intergovernmental revenue Charges for services $ 233,093 $ 233,093 • Fines, forfeitures and penalties Revenue from use of money and property - - 14,131 14,131. Contributions $ 85,000 285;674 200,674 • Other Total Revenues 85,000 532,898 447,898 • Expenditures: Current General government • Public Safety Public works Community, development • Community `services Capital expenditures - 554,180 65,409 488,771 Debt Service .. • Principal Retirement (Note 4) Interest and'fiscal charges • Total Expenditures 554,180 65,409 488.771 Excess (Deficier cy).of Revenues(. • .Over (Under) Expenditures (469,180) 467,489 936,669 Other Financing Sources (Uses). Operating; transfers in 234,981 234,981 • Operating',transfers out (70 f) ' (701) Proceeds from long -term debt (Not 6 4) Proceeds from sale of fused assets • Total Other Financing Sources (Uses) 234,280 234,280 Excess (Deficiency) of Revenues • and Other Financing: Sources Over (Under) Expenditures and Other Financing Uses (469,180): 701,769 1,170,949 • Fund Balances (Deficits), July 1 (301,050) (301,050) Fund • Balances (Deficits), June 30 $ (770,230) $ 400,719 $ 1,170,949 See Accompanying Notes to General Purpose Financial Statements. • P 10 • • Budget Actual • • • • • • • • • • • • • • • • • $ 39,481,330 $ 39,719,830 2,318,507 2,196,186 10,912,336 10,647,895 5,748,037 5,109;513 3,425,000 3,156,530 9,429,575 9,668,409 1,794,973 940,020 247,847. 360,702 73,357,605 71,801,085 1,948,855 (255,430) Totals 4;629,676 5,499,850 1 aa4 4,644,965 Variance 37,956 33,162,855 Variance (Unfavorable) Budget Actual (Unfavorable) $ 238,500 $ 38,387,832 $ 39,809,139 $ 1,421,307 (120,321) 2,204,285 1,948,855 (255,430) (264,441) 6,007,287 8,993,289 2,986,002 (638,524) 6,276,919 5,077,369 (1,199,550) (268,470) 3;268,079 2,706,194 (561,865) 238,834 .. 10,836,859 8,660,599 (2,176,260) (854,953) 2,327,155 1,070,892 (1,256,263),. 112,855 292,921 1,068,675 775,754 . (1,556;520). 69,601,337 69,335,012 (266,325).. 4;629,676 5,499,850 (870,174) .: 4,644,965 4,607,009 37,956 33,162,855 33,389,922. .(227,067) 32,182,699 32,330 338 (147,639) 14;622,092 14,382,640'..'. 239,452 14,919,198 15,018,898 (99,700) 31696,785. 3,305,511 391,274 3,607,515 3,406,712, 200,803 6,475,923.: '. 6,136,662 . 339,261 6,237,657 5,910,752 326,905 23;273,841 8;523,773: . :.14,750,068 ` 24,809,703 13,605,703 11,204,000 532,708 770,708 (238,000)1 509,544 509,544 622,802 779,586 :(156,784) .:.:.. 686,359. 665,631 20,728 67,016,682. 72 788,652 14,228,030 :.;.. 87,597,640: 76,054,587 11,543,053 03,659,077) (987;567) 12,671 1510 :': (17;996,303) (6,719,575) .11,276,728 5,802,085 6,171,842 369,757 13,181;;892 ";6,213,305 (6,968,587) (6,477,394) ,, (7,183,266) (705,872) (11,839,377) (4,906,027) 6,933,350 53,865. 53,865 116 ;682 115,682 25,500 7223 (18,277) .... 1,199,066 1,027,130 (171,930) (649,809) (950,336) (300,527) 2,541,575 2,451,690 (90,485) f' (14,308,886) (1,937,903) 12,370,983 (15,454,728). (4,268,485) 11,186,243 23,739,750 23,739,750 28,008,235 28,008,235 $ 9,430,864 $ 21,801,847 $ 12,370,983 $ 12,553,507 $ 23,739,750 $ 11,186,243 11 12 • CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenses • and Changes in Retained Earnings All Proprietary Fund Types • For the Year Ended June 30, 1995 Internal Enterprise Service . Operating Revenues: Charges for services $ 15,552,110. $ 5,872,717 Other 217,175 2,694,066 • Total Operating Revenues 15,769,285 8,566,783 • Operating Expenses: Purchase of water 7,255,987 Salaries and wages 2,881,010 983,805 • Depreciation 11475,755 1,387,572 Professional services 951,485 46,331 Maintenance and supplies 687,414 240,390 • Fleetrparts and supplies::: 419,766 Systems maintenance.. 622,580 Workers' compensat, 3,748,998 . • Claims and judgments :. 636,834 Compensated absences 1,854,378 • Other 651,279 Total Operating Expenses 14,531,510 9,318,074 • Operating Income.(Loss) 1,237,775 (751,291) Nonoperating:.Revenues(Expenses) Intergovernmental revenue . 79 710 29,997 • Interest income. 1,148 685 29,599 Other income :' • Gani on sale of fixed assets 60,240 Interest expense (350,579) (24,092) Bondrissuance cost (396,230) • Loss on sale of fixed assets Investment losses (Note 18). (2,739,911) • Total N666perating.Revenues (Expenses) (2,258,325) 95,744 Loss Before Operating Transfers (1,020,550) (655,547) • Operating transfers Operating transfers in 1,371797 Operating transfers out (362,373) • Total Operating Transfers 1,011,424 Net Income (Loss) (1,020,550) 355,877 • Retained Earnings (Accumulated Deficit), July 1 30,107,826 (17,071,776) Residual equity transfer out • Retained Earnings (Accumulated Deficit), June 30 $ 29,087,276 $ (16,715,899) See Accompanying Notes to General Purpose Financial Statements. • 12 • Totals (Memorandum Only) • 1995 1994 $ 21,424,827 $ 20,504,890 • 2,911,241 218,088 24,336,068 20,722,978 • 7,255,987 6,846,369 • 3,870,815 3,581,931 . 2,863,327 2,610,607 997,816 1,060,253 ,. • 927,804 580,901 419;766.. : , 445,998 622,580 659;660' • 3,748,998.., 3,506,016.. 636,834 8,554,026 1,854,378 2,183,384 • 651;279 588;596 23,8491584 25,567;741 • 486,484 ,. (4;844,763) • .109707 1;178,284 843,795 • 60,240' ` 74 872 38,959.. (37.4,671) • (396,230) (26,37A) (2,739,911) • (2,162,581) ; 931,252 (1,676,097) _, (3,903,511) • 1,373,797 • (362,373) (1;307,278)., 1,011,424 (1,307,278)- • (664,673) (5,210,789) 13, 036, 050 18, 779, 239 • (532,400) $ 12,371,377 $ 13,036,050 • • 13 CITY OF NEWPORT BEACH Combined Statement of Cash Flows All Proprietary Fund Types For the Year Ended June 30, 1995 Enterprise Internal Funds Service Cash flows from operating activities: Operating income (loss) $ 1,237,775 $ (751,291) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,475,755 1,387,572 Other revenue 79,710 29,997 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (307,875) (Increase) decrease in due from other governments (2,739,911). Increase (decrease) in allowance`for doubtful accounts 2,739,911 (Increase) decrease in accrued revenue (20,335) (Increase) decrease in inventories of materials and supplies, at cost 10,082 13,156 (Increase) decrease . in other assets.. 81 Increase (decrease). in accounts payable 463,355 (60,535) Increase (decrease) in accrued payroll 13,155 105,962 Jncrease:(decrease)in: due to other funds (173,751) 13,329 Increase(decrease);in deferred revenue Increase (decrease) m,deposlts (6,137) Increase (decrease) coworkers compensation (21,429) Increase (decrease) m general liability (3,085,340) :` Increase::( decrease) In oompensated. absences. .. 213,416 Totaladjustments.' .. .:1,554375 (1,424,207). Net cash provided (used)•by:operatingactivities 2,792150 (2,175,498) Cash flows from noncapital financing activities: Operating transfers from other funds 1,373,797 Operating trarsfers to other funds' (362,373) Net cash provided .by noncapital financing activities 1,011,424 Cash flows from capital and! related financing: activities: Payment of capita( lease obligation (212,895) Acquisition of capital assets (4;014,045) (844,374) Proceeds from sale of capital assets 60,240 Proceeijs from bond issuance 16,703,770 Interest paid ',:,. (350,579) (24,092) Net cashiused for capital and related financing activities : 12;339,146 (1;021,121) Cash flows frcm Investing activities: Interest on Investments;.: 1,148,685 Loss on investments .. .._ . "(2,739 911) -. Net cash Net increase in cash and .-6 Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 Noncash Activities: Contributed capital (Note 12) Capitalized accrued interest activities (1591,226) @ quivalents 13,540070 . (2;185,195) 14;391,140 3,001,513 $ 27;931,210 $ 816,318 Acquisition of equipment by capital leases See Accompanying Notes to General Purpose Financial Statements. 14 $ 60,580 $ - $ 460,458 $ - $ - $ 453,772 is • • • • • • • • • • • • • • • • • Totals (Memorandum Only) 1995 1994 • $ 486,484 $ (4,834,763) • 2,863,327 2,610,607 109,707 74,872 - . (307,875) (77,540) (2,739,911) • • • • • • • • • • • • • • 2,739,911 (20,335) -: (631,264) _ 23,238 _ (152,769) - - - - 81 2,609 402,820 706,534 119,197 - (51,834) (160,422):_ (122,047); (362,373) (7) (6,137) :(21,429) 1,736;902' , (3,085,340) 904,238. 213,416 1;114,948 130,168 6;099,102' 616,652 1.,264,339' •'. :. 1,373;797 (362,373) (007;298) .1;D11,424 (-1,307;278) (2 805):,,, .. O36,367) (4;858, 419) (3,130,103) 60;240 229;594 16;703;770 - (374,67:1) 11,318,025: - -- (3,036,876) 1,148,685 - -. 843,795 - (2,739,911) (1,591,226) 843;795 11,354,875 (2,236,020).:.:. — 17, 392, 653 19, 628, 873 $ 28,747,528 $ 17,392,853 $ 60,580 $ 4,300,356 $ 460,458 $ - $ 453,772 $ 620,141 15 16 • • • • NOTES TO FINANCIAL STATEMENTS Current representative (rbvemoe. m9o) P' ® Ustrkt t Jo.'n Hedges •, sor 7 District 2 .m Deb3y District 3 Wrrne J. Mwe, Root+., 9.623 ® MVict 4 Thon C Edwards Po Ul 6571 DlsVtct 5 dean watt PcpJalim &263 Dtetriet 6 Demis 044,1 Couneilmanic Districting. Pry 4n 9,915 The GIS was used during the redistricting process to adjust the boundary between Dletriet 7 Papalcn 9,122 "M C. cox, Jr. Districts 3 and 4 approved on November 13, 1995. A map of Census Blocks and its associated Oracle database containing population housing and ethniciry data for each Cei s Block was Te Pcpmt ee,811 P'A.tbr, ed.e ,,, e+p �,,, ;Ma,,,,,;,,, linked to the map of parcel information. Areas of parcels were selected, keeping in mind the • D,,,b, r1� City Charter statements of. fair and logical; constitute natural areas of contiguous and compact 2 a 7 - territory as nearly as is practicable; and provide fair representation on the City Council. Popu- jg&lat° t a 4' 6 - "°"eA°` °� lation information for the selected areas was extracted from the Oracle database, added to or • subtracted from the existing Districts until an equitable distribution was achieved. CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • (1) Summary of Significant Accounting Policies The financial statements of the City of Newport Beach (the "City") have been prepared • in conformity with generally accepted accounting principles ( "GAAP") as applied to government units. The Governmental Accounting Standards Board ( "GASB ") is the • accepted standard- setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. • Description of Reporting Entity • The City of Newport Beach was incorporated September 1;.1906 as a charter city:in the State of California. The City ,operates under a Council - Manager form of government and provides the. following services: public safety (police, fire and • marine), highway and streets, cultural and recreation, public improvements, planning and zoning,. utilities, and general administrative services. . The financial statements.present the financial activity of the City of Newport Beach (the primary government) and its component unit. The component unit discussed • below is included . in the City's reporting entity because of the significance of its operational, or financial relationship with the City. This entity is legally separate from the City. However; the City of Newport Beach elected officials have continuing full or. • partial.accountability for fiscal matters of the component unit. The financial reporting entity consists. of: (1)`.the City,:(2) organizations for which the City is financially accountable and (3) organizations for which the.nature and significance of their,-%, • relationship with the City are such that exclusion would cause the City's financial .,statements to be misleading or.incomplete.. . An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt ;without • approval by the primary government. In a blended.presentation, a component 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 Clty's or the component unit:provides services almost entirely to the City. • 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 9, 1992, for the purpose of assisting the City of Newport Beach in the financing of public improvements, including a public library. • The Corporation is governed by a Board of Directors comprised of seven individuals appointed by the City Council of the City of Newport Beach. The Corporation's • 17 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 financial data and transactions are included in the debt service fund, capital projects hinds and general long -term. debt account group, Basis of Presentation - Description of Funds and Accounting System The City, uses funds and. account groupsao report its financial position and result of operations. Governmental accounting systems are organized and operated on a fund basis. Fund accounting is designed to demonstrate legal compliance and aid financial management by segregating transactions related to certain City functions or activities. A'ftnd is defined as an independent fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial 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 attaining certain objectives'm 'accordance with special regulations, restrictions or limitations. The combmed?:financial statements in this report are grouped into three broad fund categories containing seven generic.,fund. types , and.into two account . groups'as proceeds of by law or ad u vines as rE ative: regulation the debt )''account for major capital 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. 11 • • • • • • • • • • • • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 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 Group 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 Long-Term Debt Account Group - The General Long -Term Debt Account Group, is used to account for long -term 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 its measurement focus: All governmental 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 net financial resources. Recognition of governmental fund type revenues represented by non- current receivables arc deferred untilahey become current., All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are ncluded;on the 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., expenses) in net economic resources. 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 General Purpose Financial Statements June 30, 1995 • Basis of Accountine . The modified accrual .basis of. 'accounting is followed for the governmental and fiduciary fund types (General, Special Revenue, Debt Service, Capital Projects and • Agency Funds). ; Under the modified accrual basis of accounting, revenues are recognized when they; become susceptible to accrual, that is, _measurable and available to finance expenditures' of the current period or soon thereafter to be used • to pay liabilities of the current period. The City considers property taxes'as available if they are remitted within 60 days after year end. Sales taxes collected and held by • the State are considered susceptible to accrual. Other revenues considered susceptible to accrual include interest income and charges • :: for services. Licenses and permits, fines, forfeitures and penalties excluding amounts received from other governmental agencies, and other taxes are not susceptible to accraal. because: they are not measurable until received in cash. Grant funds earned> • :: but not received " are recorded as. a receivable, and grants received before the related.. revenue recognition criteria have been met are reported as deferred revenues:.:: 'except Expenditures are recorded when the related fund liability is incurred, that • principal and 'interest 6n: °general long -term debt are recognized when due. The%accrual method of accounting is followed by the City's proprietary fund types (Enterprise and Intemal.Seivice.Funds). Proprietary fund types are accounted for on an "income determination" or "cost of service" measurement focus. Accordingly, all:. • assets and ,liabilities are. include' m tlieir respective balance sheets, and the, reported fund equity . (total reported assets,,less total - reported liabilities) provides lan indication: ofthe- economic net worth of ttie fund. Operating statements for proprietary fund • types (on an income determination measurement focus) report increases (revenues) and decreases (expenses) in determining total economic ne t ° worth. ilnder this determination, unbilled service receivables are recorded at year -end. Governmental • entities have the option to apply applicable standards 'of the Financial Accounting Standards Board ( "FASB") issued on or after Nove b.er30, 1989. The City. has, 'electe.d • to apply the standards as set forth by the Gavcrnrnental Accounting Standards Board ( "GAS1349. "rot • Bud,gC[ary Con and Accounting The City adheres to the:following general procedures if establishing the budgetary • data reflected in the financial statements: ' • During April, the City Manager submits to the City Council a proposed • operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Public . hearings are conducted at City Council meetings to • 20 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • obtain taxpayer comments. Prior to July 1, the budget is legally adopted through passage of an appropriation resolution. • • Budgets are adopted on an annual basis 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 (capital project fund). See Note 14 for the budget basis to GAAP reconciliation. The modified accrual basis of accounting is • employed in the preparation of the budget. • The budget is formally integrated into the accounting system and employed • as a management control device during the year. • • The City Manager is authorized to transfer budget amounts between . fund. between funds or, accounts within a Transfers of appropriations . 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. • • Budgeted expenditure 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 Bridget Revisions Budget • General Fund ' $70,294,953 $68,659 $70,363,612 Special Revenue Funds 11;468,800 41040,605 15,509,405 • Debt Service Fund 589,485 589,485''.,. Capital Project Funds 551,681- 2499 55418.0 • • At 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 in the revisions noted above. Projects that • are not started during the budget year are reevaluated in the:following year. • • Encumbrances; represent commitments related to unperformed contracts for goods aria- services...The .City ,utilizes an encumbrance system as a management control technique to assist in controlling expenditures. Under • this system, encumbrance accounting for the expenditure of funds is recorded in order to indicate outstanding commitments and is employed in the governmental fund types. Encumbrances outstanding at year end are • reported as reservations of fund balances since they do not constitute expenditures or liabilities. Encumbrances and their related budgets are • 21 • CITY OF NEWPORT BEACH • Notes to General Purpose Financial Statements June 30, 1995 • 9 22 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • General Fixed Assets The general fixed assets of the Ciry.are accounted for in a separate self - balancing • account group described as the "General Fixed Assets Account Group." These general fixed assets are capitalized at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair • market value on the date donated. Fixed assets acquired through lease.obligations are valued at the present value of future lease payments at the date acquired. Assets in • the general fixed asset account group are not depreciated.` The City 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's combined 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 on the date of contribution. Depreciation is charged over the estimated useful lives using the straight -line method. The estimated... useful lives areas follows: • Structures 50 to 75 years Equipment 4 to 1.0 years • Current Portion of Debr'` • Included in General Fund current portion.of debt are $4,300,000 principal amount tax revenue anticipation notes. The notes were issued October 15, 1994 to supplement the City's pooled cash and investments used to;fund. the 1994 -95 General Fund • current, capital and debt :service expenditures. The notes bear an interest rate of 5 %. The `outstanding principal balance at June 30,'1995 was $4,300,000. and accrued • interest at June 30, 1995 was $- 152,292. The notes were retired on October 15, 1995 including interest $215;000. paid of • Claims and Judgments.- The City accounts for material; claims and judgments and associated legal and • administrative costs when it is probable that the liability claim has been incurred and the' amount of the 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) • 23 0 • CITY OF NEWPORT 13EACH Notes to General Purpose Financial Statements June 30, 1995 expected future development on claim already reported. This is based upon historical • actual results that have established. a reliable. pattern. Small dollar claims and judgments are recorded as expenditures when paid.,, • Capital 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 financing general fixed assets are recorded both as a capital, expenditure and other financing source. Capital lease payments are accounted for in .a manner consistent • with. general debt obligations. Property Taxes ,` • The assessment; levy artd collection of property taxes are the responsibility of the County of Orange The City records property taxes as revenue when received from • the. County except at `year - end,.. when 'property taxes received within 60 days are accrued as revenue .Property taxes: are assessed and collected each fiscal year ``. • according to the: following,property tax calendar: Lien date. , March i • Levy date. July 1 .. Due -dates- NoN ember l lst.:installment March 1`= 2nd installment • Collection dates . December 10 1st installment 1.1-i 10., - 2nd installment Compensated Absences It is the.': City's policy to permit employees to accumulate earned but unused vacation • and lim4ed_amoints of earned but unused sick leave . benefits which >will't e paid to employee s.'upon separation from City service Beginning in fiscal year.1990, the City • adopted a general leave plan to replace the traditional vacation and sick leave plan. The general leave plan- permits a maximum °of three year's accrual for every employee, above which the excess -is paid out as current compensation. All employees hired • prior to January 1, 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 Internal Service Fund when employee services have been rendered and when it becomes probable that the City will. • compensate the employees for benefits through paid time off or cash payments at termination or retirement. Benefits that have been earned but are not yet available for 24 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • use because employees have not met certain conditions are accrued to the extent it is probable that the employees will meet the conditions for compensation in the future. • Deferred Revenue • Deferred revenues are those where asset recognition has been met, but the revenue recognition criteria has not been met. • Memorandum Only - Total Columns Total columns on the combined statements are captioned "Memorandum Only' to • indicate that they are presented only to facilitate financial analysis. Data in these columns. do not present financial position, results of operations, or cash flows :in conformity with generally .accepted accounting principles. Neither is such data • comparable to.a consolidation. Interfund eliminations have not been made in the aggregation of this data. • (2) Cash and Investments • The City has elected to pool all cash and investments of all funds, except for funds required to beheld by outside fiscal agents under the provisions of certificates of participation and, investment funds in its deferred compensation plan. • Cash and investments at June 301:1995 consisted of the following: • Unrestricted cash and investments: Pooled cash (deposits) $(47,122) • Pooled investments 51,664,648 Investments - deferred compensation plan 21.641.699 Total unrestricted cash and investments. 73,259,225 • Restricted cash and investments: -Cash and investments with fiscal agents 2,290,358 • Pooled Investments 4515.000 Total restricted cash and investments 6.805.358 • Total cash and investments $80,064,583 • Total Deferred Compensation plan assets include $21,641,699 of investments with deferred compensation plan administrators and pooled cash deposits of $425,991 for • total cash and investments of $22,067,690 in the Deferred Compensation, Agency Fund. 25 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30; 1995 requires California banks and savings and loan associations to secure a city's deposits by pledging government securities as collateral.'. The market value of pledged securities must equal at least 110'Yo 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'bf.150o1a of a._city's total> deposits: The City may waive collateral requirements for deposits which are fully insured up to $100;000 by federal depository insuraface: . The City's deposits at year -end are. categorized below to give an fnclication of the level Of credit risk assumed by the City 'n three categories as follows: Category 1 Category 2 Cate n held by the City or by its agent in Collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Uncollateralized. 26 • • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • As of June 30, 1995, the City's deposit balances were as follows: • Category Bank Carrying 1 2 3 Balance Amount • Petty Cash $4,695 • Deposits: Demand deposits $233,225 $i.015.619 $1.248.844 181 Total deposits $233,225 $1,015,619 $ $1,248,844 $(47.122) • Investments • The investments that are represented by specific identifiable investment securities are:. classified as to credit risk.by three categories as follows: • Category I Insured, registered, or securities held by the City or its agent the City's. name: • Category 2 Uninsured :and unregistered, with securities held by the counterparty's trust department or agent in the City's name. . Categorv3 Uninsured °and unregistered, with securities held :by the counterparty or by its trust department or agent but not in the • city,s name. • • • • • • • • 27 9 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • The City's investments at June 30, 1995, are summarized below for the credit risk, • carrying amounts, and market. values: • Category Carrying Market/Con- 1 2 3 Amount tract Value • Pooled investments: Repurchase agreement $'51182,000 $5,182,000 ,$5,182,000 U.S. Treasury Bills $6,999,982 6,999,982 7,001,734 • U.S. Treasury Notes 12,736,903 6,019,726 18,756,629 18;689,644 Federal.-Home Loan Bank 2,497,950 1,501,875 3,981,825 3,987,103 Federal Home Loan • Mortgage, Corporation 500,690 500690 501,415 Federal Farm Credit Bank 498,895 °.: 498,895 498,895:. Federal National Mortgage Association 61277,336 1,603,300 7,280;636 7,313,591 ;.. Mutual funds* 243,678 243,678. . ,Money market funds' 3,701 3,701 Stud ad ent Lo Marketing Association 500,000 500,000 488,750 Asset Backed Securities 291,072 291,072 287,201 -. BarikersAcceptances. 3,135,515 3,135,515 3,183,032 ." Corporate obligations„ 2,489,321 2,489,321 ?,521,368. • Commercial Paper 1,0000 20 1,200,000 1,200,000< State of California: 'Agency • Local Investment Fund' 4,995,736 4,995,736 Los Angeles County • Pooled Fund 119.968 1 °19:968 Total pooled investments $36,128,769 $14,705,796 $ $56x179,648 $56,217,816 • Investments with fiscal agents:,, • Investment funds* $2 290,358 52,290,358 Deferred compensation fund: • Deferred annuities* $343,138 $343,138 Mutual funds* 21.298.561 21.298.561 • Total deferred compensation investments $21,641.699 $21,641,699 • * Not subject to categorization. • 28 • • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • At no time during the fiscal year did the City borrow funds through the use of reverse - repurchase agreements. • (3) Fixed Assets • A summary of the changes: in general fixed assets are as follows: • Balance Balance July 1. 1994 Additions Deletions Tune 30. 1995 • Land $23,803;066 $777,932 $24,580,998 Strictures 9,930,360 409,828 10,349;188 Equipment 36,710.429 1.711,448 38.421.877 • $70,452,855 $2,899,20 $ - $73,352,063 • A summary of the changes in the proprietary fund type fixed assets are as follows: • Balance Balance July 1. 1994 Additions Deletions June 30. 199 • Enterprise Funds: Land $3,056,613 $1,000 $3,055,613 Structures . 65,93500 $816;299 _ 355;414 66,396,045 • Equipment 547,463 80,719 7,933 6201249 Construction in progress 1.241,886 643 7.147 4.889.033 70,781,122 4,544,165 364,347 74,960,940 Less accumulated • depreciation (41.651.274) (1.482,680) 265,236 (42468.718) • Net $29,129,848 $3,061,485 $99,111 $32,092,222 Internal Service ; Funds- • Equipment $4,981,437 $1,379,056 $156;926 $6,203,567 • Less accumulated depreciation (1,387.572) (76,016) (2.461.174) (1.149.618) • Net $3,831,819 ($8,5L6) $80,910 j3 23 3 29 CITY OF NEWPORT BEACH • Notes to General Purpose Financial Statements June 30, 1995 • 30 • (4) Long -Term Debt • General Long -Term Debt Account Group A summary of the changes in the general long -term debt account group is as follows: • Balance Balance July 1. 1994 Additions ' Retirements Tune 30, 1995 • Certificates of $135,000 "$7,235,000 . participation_ $ 7,370,000 Note payable 3,115;417 96,178 3,019,239 Loan payable 245,000 245,000 ' Capifalized leases 488.961 ` $53.865: 2 4 - 0 248296 • $11,219,378:' $53,86 $770,70 $l0, >02,535 • Certificates of Par icipation • On June 1:; 1992.: the Newport Beach PubJ.ic Facilities Corporation issued . $7 500 000 of Cert hcates of Rarticipation to finance the construction of the new . • Central. Lr{irary Iri`turri the; City entered into a project lease with the New Beach ,:Public , Facilities.. "Corporation to lease certain property, facilities,.; improvements and equipment;`. • The lease payments to be made by the City wi11 be held by a trustee who will make semi - annual payments on the certificates of p'art'icipation. The base • payments began May 15, "1994 and are::n amountssufficicnt to cover the payment of principal and interest of the certificates. Principal payments range from $1'30,000 to $560,000 from June 1, 1994 through June, 2019 at an interest rate from 6.0% to 6.210: At June 30, 1995, the City has a required cash ,.reserve balance . for'. debt service" of >$561,193. The.. certificates .outstanding at` June 30, 1995 amounted to $7,235,000. • • Note Payable • Note payable consists of a note to the California Department of Boating and Waterways in 1987 for a loan in the amount of $3,300,000. The note is payable in • thirty annual principal and interest installments of $236,372 at 4.5 % rate of interest beginning August 1, 1987. The outstanding balance at June 30, 1995 amounted to . $3,019,239. 30 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 . • Loan Payable In June 1989, the City entered into a Section 108 loan with the Department of • Housing and Urban Development for $1,200,000. The Section 108 loan was payable in semi- annual installments through August 1995 bearing an interest rate • of 8.75 %. The debt service payments are recorded in the Community Development Block Grant Fund as community development expenditures. The remaining principal balance was retired as of June 30, 1995. • • Capitalized Leases , . Office Equipment Leases• In the current and prior fiscal years, the City had entered into several lease - purchase agreements as lessee for financing the acquisition of :a • geographic information system and upgrades of equipment and software to the financial management and data processing systems. The terms of the leases ranger . from three to five years and are payable monthly. The interest rates on these... • obligations range from 5% to 9 % These 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 $1,755,547 and are included in the General Fixed Asset Account Group totaling $1,755,547. • Annual Amortization Requirements of lon �Terrn Debt The annual. requirements to amortize outstanding debt included .in the General . Long -Term Debt Account Group as of June 30, 1995, are as follows: Year Ending Certificates of Note Capitalized • ;Lune 30 Participation Pa able Leases Total . • 1996 $591,385 $256,372 $178,581. . $1,006;338 1997 587685. 236,372 48,843 872,900 1998: ; 588,685 236,372 23,317 848,374 • 1999 584,085 236,372 :12,650 833,107 2000 584,185 236,372 - 3,162 823,719 Thereafter 11.153.265 413, 4.051 14.567.316 • 14,089,290`. 4;595,911. 266,553 18,951,754 • Less: amount repre- senting interest (6.854.290) (1,576.672) (18,257) (8.449.219) • $7,235.000 $3.019,239 $248.296 $10502,535 31 0 CITY OF NEWPORT BEACH • Notes to General Purpose Financial Statements June 30, 1995 • ProprietaryFunds Long -Term Debt • Enterprise Fund • A summary of changes in long -term debt of the enterprise funds is as follows: • Balance Bala -nce July 1. 1994 Additions Retirements ;.une 30, 1995 • Water Revenue Bonds $ $17,100,000 $ $17,100,000. Less current portion (820,OQ0) .' • Total long -term " $ $16,286mo The ctii?rent portionrn .'the accompanying General Purpose: Financial Statements' • includes prtndr al of.,$82%000 and accrued interestpayable of $460,458 for a total $1.,280,458 • • Water Revenue Bonds In..the current year, t Ity issued $17;100,000 of"water revenue Uonds to finance • the construction and.:acquisition of water storage and transmission facilities. The :: bonds are secured by a pledge`of, net revenues of the water fund. The bonds bear ,: interest ranging from. 5.375% to 5.4% Fifteen` annual.principal payments are • payable. on August 1, and semiannual interest payments are payable on February :T" ".: and August 1. At ;dune 3Q; 19951 the outstanding principal balance was s • W_ ,100,006,and accrued interest payable was $460,458.. Water revenue bond debt servcce.requirements to' maturity; including $7,744;562 of • interest are as follows: Year Ending . Tune 30 Amount , 1996 $.1718,875 • 1997' T;699,131• .1998 1,682.905:: ` 000 • 2000 "' 1,664,543 Thereafter 16 404.306 • Total $24,844,562 r1 lJ 32 • • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • Internal Service Fund A summary of changes in long- term debt of the internal service funds is as follows: • Balance Balance • July 1. 1994 Additions Retirements Tune 30, 1995 Claims and judgments payable $12,763,140 $3,830,097 $6,936,866 $9,656,371 Compensated absences 7,093;226 1,854,378 1,640,962 7,306,642 Capital leases 483.774`. 453.772 212.895 724.651 • 20,340140 $6,138.247 $8,790,723 17,687,664 • Less current portion (2.712:275) (3.249.273) $14,438,391 Total long -term $17,627,865 • • .Claims and Judgments The City retains the risk of loss for general liability and workers' compensation `. • claims as described in.note 6. These amounts represent estimates of amounts to be paid for..reported.general liability and workers' compensation claims including incurred but not yet - reporte,d . claims based upon past experience, modified for • amount trends and: information.. While the ultimate amount of losses incurred through June 30, 1995 is: dependent on future developments, based upon • information from the City's attorneys, the City's claims administrators and others;' involved with the administration of the programs, City management believes the accrual is adequate to cover such losses. The estimated liability at June 30, 1995, • amounted to $91656,371 • • Compensated Absences The City's policies 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, 1995, is $7;306,642. ' . • Capitalized Leases • Rolling Stock Leases - Equipmeni Afl inienance Internal Service Fund: In the current and prior fiscal years, the City entered into five lease - purchase agreements as lessee for financing the acquisition of a fire truck, an air sweeper, a street • sweeper, a crane and two trucks. The term of each lease is five years and each is payable annually. The interest rate for each lease is between 4.98% and 6.98 %. The lease agreements qualify as capital leases for accounting purposes as the title 33 0 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • transfers at the end of the lease term or the lease contains a bargain purchase • option. The assets acquired -were classified as equipment in the Equipment Maintenance Internal:ServiceFund totaling $1,073,913 • Annual Amortization Requirements of Iuternal`Service Fund Capitalized Lease Obligations The annual requirements to amortize outstanding capitalized lease obligations • included in: the Internal Service Fund as of June 30,1995,.are as follows: • Year Ending Capitalized dune 30 ' Leases 1996 W6,987. 1997 236,987 1998 ?36,987 • ':1999 .. 1�0 621_ 811,582 . Less amount repre -. sentang: interest.: 86 1 $724.651 • (5) Special Assessinent Districts Bonds • Bonds outstanding at Jurie 30, 1995 for each district under the Bond Acts of 1911 and 1915 are as follows: Bonds —Original . ' Outstanding Assessment District " Issue.'< Lune 30. 1995;' • No. 56 China Cove $i45,254 $10,570.' No 57 Corona Highlands 938,598 No 58 Cannery. Village 107.746 471,139 i.75 • No. 59 McFadden Square 530,609 460,000 No 60 ;Bay Avenue 236;533 205,000 • No 6-1. East Bay Front 127,299 110,000 No. 62 HaeID rive 335,210 290,000 No. 65 Rocky Point 53,125 47,000 • No. 63 Newport Island > 536;531 490,000 _ No. 66 East Newport 171,911 165,000 No. 72 Balboa Coves 192,908 192,908 • Although the City collects 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 34 • E • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 _ • of the bonds, and therefore the bonded indebtedness is not shown in the financial statements of the City. • (6) Risk Management - General Liability and Workers' Compensation • The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters.. The City carries commercial insurance with independent third parties for loss risks associated with real and personal property, and automotive liability. The • City purchases fidelity bonds for employees in key positions. Settled claims from these risks have not exceeded commercial insurance coverage for the past three years. • At June 30, 1995, the City retained the risk of loss for workers compensation liability without stop loss provisions. The City retained the. risk of loss up to $1,000,000 per. occurrence for general liability. The Insurance Reserve fund.`was established to account for costs associated with general liability, workers compensation and compensated absence benefits. The • Insurance Reserve fund is accounted for as a internal service fund where assets are set aside for risk.management, administration, claim settlements and benefit distribution. • A premium is charged to each fund that accounts for part-time or full -time employees. The total charge allocated to each of the funds is calculated using trends in actual experience after considering unexpected and unusual claims. • Fund Liabilities are repotted when it is probable that a loss has occurred and the amount of the loss can be reasonable estimated. Liabilities include an amount for • claims that have been. incurred, but not reported (IBNR). Claims liabilities are .. calculated considering' the effects of inflation, recent claim settlement trends including` frequency and amount of pay -outs and other economic and social factors. Tune 30. 1994 Lune 30, 1995 Unpaid ,claims,beginningoffiscal.year. $10,122,000 $12,763,140 Incurred claims (including IBNR's) 7,060,042 3,830,097 Claim payments (4.418.902) 6( 36AO • Unpaid claims; end of fiscal year $12,763,140 $9,656;371 • (7) Deferred Compensation Plan The City offers its employees a deferred:compensation plan created in accordance • with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or • unforeseeable emergency. • 35 CITY OF NEWPORT BEACH • Notes to General Purpose Financial Statements June 30, 1995 • 'All amounts of compensation deferred under the plan, all property and rights • purchased with those amounts, and all inconie: attributable to those amounts, property, or rights are (until paid or made available to_ the employee or other beneficiary) solely the property and rights of the City (without being restricted to the . provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are: equal to those of general creditors of • the City in an amount equal to the fair market value. of the deferred account for each participant. • The City has no liability for losses under the plan but does have the fiduciary responsibility tinder the: plan 4, due 'care that would be 'required of an ordinary pnident investor. The City believes that it is unlikely it will use the assets to satisfy the • claims of general creditors in the future. The assets under the plan are reported at market value m an Agency Fund.and totaled $22,067,690 at June 30, 1995. • (8)'' Retiremerit Rlans Plan.Descnption - Defined Benefit Plan The City contributes to the California Public Employees' Recirement System (PERS) an ): • agenrmuluplg.:employer public employee retirement system that acts as a. common., ' investment and administrative agent for participating public entities within the State of .: California The City's covered payroll for employees participating in the System for is the year ended June 30;:1995 was $37,405,762. The total payroll, for the year was $41,151;489 • All full -time a, ci:part time benefited City employees.are eligible to participate in the System. Part -time non - benefited hourly employees do not participate in the System. Benefits vest after -) -years bf service Public safety employees who retire at or after age • 50 with 5 years of credited service are entitled to an annual retirement b. enefit, payable monthly for life, in an amount that :varies from 2°/, at age 50 to a maximum of • 2 7% of age 60:.of the:, highest year's salary . (misce laneous`.employee amounts vary from 1 092% at age 50 to -.a maximum of 2.418% at age 60) for each „year of credited service: The system also provides death and survivor's benefits.. These benefit • provisions a4d. all, other requirements are establ -ished by State, statute and City ordinance. • Employee and Employer Contribution Obligations - The City generally makes all of the contributions required of City employees on their • behalf and for their account, except that some employees have elected to pay their • • 36 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • own contributions. The rates are set by statute and therefore remain unchanged from year to year. The present rates are: • Member Rates as a Category Percentage of Wages • Local miscellaneous members 7% Local safety members 9% • There is a charge for employees covered by the 1959 Survivor Benefit, $2100 per covered member per month.. • The City is required .to contribute the .remaining amounts necessary to. fund the benefits for its members, using the actuarial basis recommended by the PERS actuaries. . and actuarial consultants and adopted by the Board of Administration. Funding Status and Progress .: • The amount shown. below as the "pension benefit obligation" is a standardized measure of the present. value of pension benefits, adjusted for the effects of step rate • benefits, estimated to be payable in She future as a result of 'employee service to date The measure is intended to help assess the funding status of the System on a going- concern basis., . assess- progress made in accumulating sufficient assets to pay benefits.".; when due,-and make comparisons among employers. The measure is the actuarial present value of credited. projected pension benefits and is independent of the • funding. method used to determine contributions to the System. The pension benefit obligation was computed as part of an actuarial valuation • performed as of June 30, 1995 (based on June 30, 1994 data). Significant actuarial assumptions used in the valuation include. (a) a rate return on the investment of present and future assets of 8.50% a year compounded annually, (b) projected salary • increases of 4.50% a year compounded annually, attributable to inflation,j(c) no additional projected: increases for miscellaneous employees and safety employees, attributable to seniority /merit, and (d) no post- retirement benefit . increases. • • • 0 is 37 0 CITY OF NEWPORT BEACH • Notes to General Purpose Financial Statements June 30, 1995 • contribution requirement are the same as those used to compute the pension benefit obligation, as previously described. • • 38 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • The contributions to the System for fiscal year ended June 30, 1995 of $ 5,706,161 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1993. The contribution consisted of (a) • $5,630,041 normal cost (15.1% of current covered payroll) and (b) $76,120 amortization of the unfunded actuarial accrued liability (.2% of current covered payroll). The City contributed employer contribution of $2,697,441,(7.29/0 of current • covered payroll); and on behalf of employees $3,008,720 (8% of current covered payroll). Of these amounts $ 3;274,990 was funded by PERS surplus accounts. • Trend Information . Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Within the City's financial statement, presentation of ten years of historical trend information is required. .1988 is the first year that this • actuarial information has been made available by.PERS. For all years presented,,. contributions were made in accordance with actuarially determined requirements.: Until ten years of data are available, as many years as are available are presented as • follows, in thousands (unaudited): • (6) Unfunded (Assets in Excess of) Pension (8) • (4) Benefit Employer Unfunded Obligation Contributions p) (Assets in Excess of) Expressed as Expressed as ., .: Net Assets `. (2) (3) .�:: Pension (5) a Percentage .: a Percentage • Fiscal Available Pension Percentage Benefit Annual of Covered (7) of Covered Year for Benefit. Funded. Obligation ., Covered Payroll._ Employer Payroll • Ended Benefits Obligations (D /(2) , M- 1 Pa ro l (4)/(5) Contributions (7)i(5) 1988 -_ .$66,906 $68,264 98.0% $1,358 $23,600" 5.8% $2,390;:,, ,:, 1011% 1989 76,117 75,332 -_ _ 101.0% (.785) - 25,192 `' (31°/0 2111 8.40M • 1990 85,574 82,421 103.80/o - _ (3,153) 27,312 (11.5%)° 27571 9.4% 1991 95,118 96,389 98.7% - 1,271 30,092 4.2% 4680 8.90/0 1992 104,012 105,027 99.0070 1,015 32,482 3.1% 3,143 9.7% • 1993 114,807 118,077 972% 3,270 33,369 9.8% 2,991 9.O0h 1994 126,813 - 121,320 1046070 (5,493) 33,544 (16.4 %) 2,983 8.9070 1995 154,866 132,912 - 116.5% - (21;954). 37,406 (58M/0: 2,697 7.2% • Plan Description - Defined Contribution.. Plan • As of January 1, 1992 the City entered into a defined contribution plan with Public Agency Retirement System ( "PARS ") for all of its part -time employees. In a 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 legislation requires contributions of at least 7.5% to a • 39 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 retirement plan, and City Council resolved to match the employees' contributions of 3.75 %. The City's contributions for each employee (and interest earned by the accounts) are fully vested immediately. For the year -en 'ed June 30, 1995, the City's covered payroll for employees participating in the plan was $2,315,785• The City made employer contributions of $86,842 (3.75% of current covered payroll). Assets of the pan totaling. $825,000 at June 30, 1995 are reported as deposits in the Deferred Compensation Agency Fund. As of June 30, 1995, there were 267 employees participating in the plan. (9) Early Retirement Program On itirie 30; 1993, the City implemented and offered an Early Retirement Program to `certain employees whose retirement would lead to ,a permanent vacancy within the City organization: The Early;;Retirement Program' provides participating emp loyees with a supplement to their normal PERS retirement benefits by an additional payment from the Crty As of. June 30, 1997, thirty employees opted to participate in the Early % Retirement Pr'ograip:which was budgeted arid funded as a cost to the City of $1;603,112 .Eligible: retirees were given the option of receiving a direct lump sutra ;payment or the purcha,4of a deferred annuity. (10) Post - Employment Health Care BeneflN%. As estabhshedby a City;Council.:approved Memorandum of`Understanding between. the City arid`.its employees, the City provides post - employment health, care benefits'.: Employees who retire, the City with seven years of service and parueipate in PERS are eligible to receive health care benefits covering themselves and any qualified family members, from the City's . insurance carrier,Health Net. The City pays 50%; *of total plan premiums . charged under the provided plans while the active and retired employees split the remaining premium at 'a rate`of 25 %:each. This program is funded on,*a pay -as- you -go basis. The City's expenditures' for- post - employment health care benefits for *'fiscal. years 1994 -95 and 1993794 were $239,614 and $267,191, respectively. As of-June 30, 1995, 162 participants were eligible to receive'. benefits. 40 • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • (11) Interfund Receivables and Payables • • At June 30, 1995, interfund receivables and payables were as follows: General Fund Special Revenue Funds: Community Development Block. Grant Contributions Building Excise Tax, Enterprise Fund: Cannery Village Internal Service Fund:. Insurance Reserve Total Due From Other Funds $1,366,962 $1,366,96 Due To Other Funds 41 0 During fiscal year..,1994, the,' if Quality.- Management Special Revenue Fund. was • reclassified from an agency fund, where no budgets are adopted, to a special revenue fund... The reclassification occurred subsequent to, cm opletion of the fiscal year 1995 • budget, No budget was adopted for the. Capital Improvement Capital .l?rojects Fund because there was no planned activity for this fund during fiscal year 1995: Therefore, the activr�es of. these funds are not included in the Combined Statement of Revenues, • Expenditures and Changes in Fund Balance - Budget and Actual. In order to reconcile the Combined Statelnent of Revenucs, Expenditures, and Changes in Fund Balance • (GAAP basis), the fund balance for the above ment ©ned funds should be included as follows: 42 r1 U • • • • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1995 • (13) Reserved and Designated Fund Balances • Reservations of fund balances consist of the following:_ • Special Debt Capital General. Revenue Projects Fund Funds Fund Funds Total • Encumbrances $2,341,378. $1',076,582 $32,949 $3,450,909 • In�ientories 198.,441.. , . 198,441 Long Term. Receivable 200,060: 200,000 . Debt Service $56L I93 1 1 • Total ResErved 52,739,819 $1,076 5b2 $56 $32,949 $4,410,543 • Designations.establ slied as:ofJune 30 „1995 are.as`fol lows : Special Capital General . Revenue Projects Fund Funds Funds Total • Contingencies $5,084,455 ..$12,015,819 $367,770 $17,468;044 Special Protects 659 973 .:' 659.973 • TotalDesignated $> 74428 .:$12,015 819 367,770 518,1217: • During fiscal year..,1994, the,' if Quality.- Management Special Revenue Fund. was • reclassified from an agency fund, where no budgets are adopted, to a special revenue fund... The reclassification occurred subsequent to, cm opletion of the fiscal year 1995 • budget, No budget was adopted for the. Capital Improvement Capital .l?rojects Fund because there was no planned activity for this fund during fiscal year 1995: Therefore, the activr�es of. these funds are not included in the Combined Statement of Revenues, • Expenditures and Changes in Fund Balance - Budget and Actual. In order to reconcile the Combined Statelnent of Revenucs, Expenditures, and Changes in Fund Balance • (GAAP basis), the fund balance for the above ment ©ned funds should be included as follows: 42 r1 U • • • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 • Special Capital Revenue Fund Project Fund • Fund balance on .a budgetary basis $12,355,688 $400,719 Add reconciling items: • Air Quality Management District 230,567 Capital Improvement Fund 1-.100.000 • Fund balance on a GAAP basis $12,586,255 $1,500 719` (15) Segment Information for Enterprise Activities • There are four services provided by the City which are financed primarily by user . charges - parking, water services and for in funds. sewer services.. These services are accounted. separate. enterprise • The key financial data for the year ended June 30, 1995 for these Enterprise Funds are as follows: • Cannery Village. Waste- Parkine Water water Total • ` Operating revenues ..., $991041 $13,664,307 $2,005,937 $15,769;285 • Operating expenses: Depreciation 4,299 757;556 713,960 1,475;755 Other 11,471,118. 1,5841637. 13,055,755 Operating income {loss) 94,742 1,435,633. (?92,600) 1,237,775. • Net income (loss) 95,1263 (855,693)' (260,120) (1,020,550). Current capital • contributions 60,580 60,580 Property, plant and equipment: • Additions .4,312,399 231,766 4;544,165 (Deletions). (13,400) (6,925) (20,325) Net working capital (661,822) 26,043,008 1,793,195 27,174,381 Total assets 11117,737 50,158;478 11,876,244 63,152,459 Outstanding long -term • liabilities Total 455,915 16,280,000 11,848,275 16,280,000 42,986,603 equity 30,682,413 43 CITY OF NEV TORT BEACH • Notes to General Purpose Financial Statements June 30, 1995 • (16) Individual Fund Disclosures • At June 30, 1995, the Contributions Special Revenn,e Fund had a deficit fund balance • of $499,776, and the Building Excise Tax Special Revenue Fund had a deficit fund balance of $6,370. "These deficits will be eliminated by future revenues or transfers from other funds. In addition, the: accumulated, deficits of $16,534,241 and $181,658 • in the Insurance Reserve and Equipment Internal Service Funds, respectively, are expected to be eliminated by future interdepartmental charges (See note $). • (17) Commitments and Contin e� ncies Numerous claims and suits have been filed against the City in the normal course, of . business. Based noon information received from the City Attorney, Contracted Attorneys and the Risk Manager, the estimated liability under such claims would be by and • adequately covered the accrued claims judgments payable. (1'$) Orange County Bankruptcx.. ' • On December °6, 1994; the County of Orange ( ".`County') and the Orange County jnvestrn6ni.46.4% (''Pool) filed ,petitions under; Chapter 9 of the United States • Bankruptcy 'Coade..As a.Pool, participant, the City of Newport Beach C' City ") had $16,9821001..6f City funds invested in the Pool on December 6, 1994. • A• Comprehensive Settlement Agreement ( "Settlement") for the Pool was offered to the Pool participants on March 26, 1995. The Newport -Beach City Council, at its meeting on April 10,' 1995, re "soloed to accept the settlement under the terms described below. • "`_The settlement was approved by the United States Bankruptcy Court on May 2, 1995.: Under this agreement, the City received cash in the_approximate amount of 77,peicent • of its investment balances as of December 6, 1494'; together with certain notes and allowed claims against ,the County for the balance of its° investment, less • approximately. percent to 2 percent Withheld bycertain brokers pending resolution of litigation. The Pool: was liquidated on May 19, 1995, at which. time the City received approximately 79 percent of .its;investment,baIances. turn, the City • released all claims against the County and various others, as described in the settlement, and:' assigned all Poo[ - related claims against thud parties of the County, with certain limited exceptions as explained below. . The final 21 percent of the City's investment balances was exchanged for contingent assets in the forms of settlement secured claims against the County (8.9 %), withheld • proceeds (150/), and repayment claims (10.6 %). The settlement secured claims are secured by a first priority security interest on 65 percent of net litigation proceeds • recovered by the County from third -party defendants. The repayment claims are secured by a second priority security interest on 65 percent of litigation recoveries • 44 • 0 • CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements • June 30, 1995 . from third party defendants. The repayment claims are an "allowed" claim in the County's bankruptcy case under the terms of the settlement. • Pursuant to the settlement, Newport Beach received cash in the amount of $13,731,213 through June 30, 1995. This amount represents a recovery of principal of • $13,399,826 (79 %) plus $304,462 in interest earning for periods prior to the County's bankruptcy filing. The non - recovered principal balance of $3,582,175 have been reclassified from investments to receivables where like amounts of allowances were • subsequently recorded to recognize the impaired nature of the assets. Losses were recorded as current expenditures and non - operating investment losses, as applicable, in the following fund types:. General Fund (General Government) $476,565, Special • Revenue Funds $365,699 and Enterprise Funds $2,739,911. As the City pools its.cash and investments, the loss was allocated to appropriate participating funds based on each fund's November 30, 1994 cash and investments balance. • In addition to City funds invested in the Orange County pool, the County has . refrained from paying the City in excess of $1,000,000 of property and other tax collections as.well as various revenues including fines, forfeitures, restitution, leases and cooperative agreements. The City is in the process of preparing claims to be • submitted to the Bankruptcy Court by December 1, 1995. The City has not recorded': receivables for most claims because receipts are not expected soon enough. to fund expenditures. of the current period. For contract billings,. the City has recorded • receivables to track the funding sources of the projects. • • • • • • • (19) Subsequent Event -'On September 1, 1:995, the City obtained excess workers compensation employers liability insurance coverage of $300,000 per occurrence up to $1,00( This coverage provides for work related accidents and diseases.. 45 46 • • • • • • • SUPPLEMENTARY INFORMATION Fletcher Jones Site • Public Works Information DATE SIGNED DY Mtran ffi (is a ITEFUG) Planning Department — RECmmATIM • Application Information DATE RECDRD r (BOUD/PAOE) am LINE ON MGM NN19ER RANGE STREET NNIE AS �n'TM' RLVfn6 FIELD REVIIV DATA SIQI OFF MtiINS ® ■'__________________------ _____ • 1 LEM STREET NAMES AS -MELT DAFT HATE ACCFPTID W CITY COUNCIL WP SHEET DATE Mau; TAG PLAN CHECK I : PLANNING fQRIS a • CITY COUNCIL A ----------------------------- PLANNING FEES ------------------------------ ACCOUNL E DATE AMOUNT RECEIPT R [NISI - -S PARRS DEDICATION- go H00. -Q011LLEE ZONE GALE plINL INITIALS COMMENTS IY /vl -CWrtENTi SAN !SHARER RILLS FAIR SNARE • " "• COASTAL -OAST -- COPn -- --- -- _______________________________ ____________________ ________ --------- __ BUILDING APES (YIN) DATE COORENTS (Y /N) BAILING PREMI BUILDING PERMii • Recording Information _ ___________________________ PUBLIC WORKS FEES DATe N10UNT RECEIPT INITIALS pAS£ EIIXEI , ., I Intdrea INSPECTION PEE VA SO CAPITAL IMPROJEMENL SURETY TEAMS 1 • I DATE 1 IMPflPICMCNi3 LOSS At. tl,L I At. Nd Accorded DPdVVentd Coe TRACTS. Planning InfOCmatlOn I Tome[: M_t U /u -Iv 1 PMCt1NAPS FIELD REYIEV DATI Aka Rdw[ddd DdcunrnCd f0[ RFSI ®5. • Po[nat: 1 r eEI_ur /u -u AS BIfILT DATE I � 1 OFFICIAL RS PnRAfS I Ate The QCet&d pdnv.mta for LOT LINE FamatMRI ON 1 Fdmdt' OR H- EVttvt a[ D[i EtlEE /EEEt • I - The Newport Information System is used to track new development through 1 00 YOU VAI ME PEANUTS. YARFANCES OR SITE PLAN REVIEWS I m MET hm„ ad(: Paddrdatidn Ddcwma. the subdivision process. Submittals, fees, permits, inspections and approv- als are followed through varioius departments and the status of any project • Sample Gala. norrelared rp project NlVUn¢d. can be determined. • • • • • • • • • • • • • • • • • • • • GrENExAr. Furor Baypoint 300 Residential Condo Units Ford /Loral 250 Single Family Residential Units Newport Colony 250 Residential Condo Units (attached) Newporter North 170 Single Family Residential Units (detached) Upper Castaways 119 Single Family Residential Units (detached) Corona del Mar Plaza Commercial Development Fletcher Jones Site Automobile Dealership Proposed Bayview Landing Seniors Project Corporate Plaza West Mixed Use Project THE GENERAL FUND The General Fund is used to account for fiscal resources which are: • • • • • • • • • • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH Comparative Balance Sheets - General Fund June 30, 1995 Assets Cash and investments Accounts receivable and accrued revenues Due from other governments Allowance for doubtful accounts Due from other funds Inventories of material and supplies, at cost Restricted assets - cash and investments . Other assets Notes receivable Total Assets Liabilities and Fund Balance Liabilities Accounts payable: and accrued liabilities Accrued payroll Deferred.revenue. Deposits Current portion of debt Total Liabilities Fund Balance: Reserved: Reserved for encumbrances Reserved for inventories Reserved for long term receivable . Unreserved: Designated for special, projects Designated for contingencies Total Fund Balance . Total Liabilities and Fund Balance EIR 1995 $ 9,106,602 1,084,732 2,429,237 (476,565) 1,366,962 198,441 4,515,000 1994 $ 9,550,506 1,540,425 1,699,979 2,164;438 157, 054 4;452,292 9;953 662 5,194,905 2;341,37.8 1,168, 969 198,441 157,054 200,000 5;084,455 4,547;127 659,973 41057,668 8,484,247 9,930,818 $ 18,437,909 $ 15,125,723 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended June 30, 1995 1995 1994 Variance Favorable Budget Actual (Unfavorable) Actual Revenues: Taxes $ 3&4811330 $.`39,719;830 $ ::238,500 $ 39,809,139 Licenses, fees and permits : ,1,222,159 1,112 873 (109,286).. -- 881,774 Intergovernmental revenue 6,676,886 7,113,785 436,899 3,980,889 Charges for services 5,555,837 4,884,630 (671,207)': 4,970,181 Fines, forfeitures and penalties 3,025,000 3,067,817 42,817 - 2,527,815 Revenue from use of money and property ,5;019,575 5,067,329 47,754 4,297,327 Contributions.. 560,326 144,340: (415,986) 534,483 Other 244,747 360,652 115,905 :. 1,046,844 'Total Revenues " 61,785,660 61,471;256, (314,604) 58,042,462 Expenditures: Current .. General: government .: 4,629,676 5.152,151 (522,475) 4,607,009 Public safety 32,894,256 33,163,911 (269,655) 32,156,176 '. Public works 14%,1, 6, 22,0I 9I 2 14;382,640 239,452 15,018,898 '. Communitq development 2873,761 2;930,048 (56,287). 2,836,241 Community semces 5,950,578 5,722,113 228,465 5,457,065 Capitatezpenditures 9,070,604: 5;568,817 3,501,787 6,093891 Debt Service ' Principal retirement. 294,530 294,530 290,781 Interest and fiscal charges 128,1115 . 184,907 '(156,792) 43,737 Total Expenditures._ 70,363,612- 67,399,117 :' 2,964,495 66;503,798 Excess (Deficiency) of Revenues Over (Under) Expenditures (8,577,752) (5,927,861) ' 2,649,891 (8,461,346) Other FinancingSources (Uses): Operating transfers in 5,802,085 5.,.296,0#, (506,0.63*) -.**-' 5,832,397 Operating transfers out. :'(589,485): (875;820)' (286,335)`' (357,966) Proceeds from long -term debt 53,865 53,865 116,682 Proceeds from sale of assets 25,500 7,223 (18,277) 1,027,130 Total Other Financing Sources.(Uses) 51238,100. 4,481,290 (756,810) 6,618,243 Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balance, July 1 (3,339,652) (1,446,571) 9,930,818 9,930,818 1,893,081 (1,843,103) 11,773,921 Fund Balance, June 30 $ 6,591,166 $ 8,484,247 $ 1,893,081 $ 9,930,818 48 • • • • • • • • • • • • • • • • • • POP IF kil JRD6 41 i: �ot& 0 SPECIAL REVENUE FUNDS 0 • • 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 Tat Fund accounts for all State Gas Tax related revenues and expenditures, including street repair, construction, and maintenance. State law requires that these funds be used exclusively for maintenance ofthe streetand highway system. i • The Arterial Highiviry Financing Fund is used to accountfor funds received from'the.Orange County. Transportation Commission for the construction and maintenance of arterial highways. • The Federal Adopted Forfeiture Fund was established to account forall revenues resulting from the seizure of assets In conjunction with criminal cases (primarily;drug'traffickiag). it is :the City's policy that all such funds shall be used for enhancenientof law enforcement programs. The Tide and Subruerged Land Fond is used to,account for all revenues and expenditures related • to the opchtion ofthc City's tidelands,. including beaches and marinas. ' `Tlie.Contrrbrdfons Fund is to account for revenues received from other government • agencies or pnvate:devclopers and upended forspecific street or highway construction projects The Circulatit.i nrtd Trensportatian Futid is used to account for fair share revenues collected • from developers and :restricted: for capital improve Went projects meeting the circulation element of the City's General.: Plan:. • The Building Excise Ter Fund is used to account 1 tor'revenues received from builders or "developers on building or remodeling projects within the City:. Expenditures from this fund are.,,' used exclusrvely.for public safeiy, libraries, parks, beaches, or recreational activities. • d is used to count for the revenues and expenditures of The Combined Transportation Fua ac funds received from the Orange County Combined Transportat on- Funding program. <' Expenditures from this'fund are used,exclusively foclransportation related purposes. The Cnnvnunity Developnient,Block Grant Fitud is used to account ;for revenues and • expenditures.relating to the:City's Community Development' Block Grant program. Thocfunds are received from the Federal ;:= Department of Housing and Urban Development`.and.inust be expended exclusively on programs for low or moderate income indiditltials /families:; .> • Ackerman DonnhohTtind,.is used to account for the receipt and disbursement of funds received from the Ackerman'Trust These funds are split between: the City And the University of • California, Irvine. The City's .poition must be used for library and scholarship purposes. Air Quality Management District Fund is used to account for revenues received from the South • Coast Air Quality Management District restricted for the use of reducing air pollution. • • 49 CITY OF NEWPORT BEACH Combining Balance Sheet All Special Revenue Funds June 30, 1995 Total Assets:, $ 4,336;747 $.. $ 399,229 Total Liabilities and Fund Balances $':4,336,747. $ $.,399,229 50 • • • • • • • • • • • • • • • • • • • • Arterial Federal State Highway Adopted Gas Tax,-.. . Financing Forfeiture Assets Cash and investments $ 4,336,747. $ 399,229 ' Accounts receivable and accrued revenues Total Assets:, $ 4,336;747 $.. $ 399,229 Total Liabilities and Fund Balances $':4,336,747. $ $.,399,229 50 • • • • • • • • • • • • • • • • • • • • • Tide and Circulation Building Community • Submerged Land Contributions and Transportation Excise Tax Combined Transportation Development Block Grant • $ 12,396 $ 7,111,878 $ 591,781 • 380,870 6,169 $ 453,269 224,616 $ 908 526,718 $ 116,345 • (224,616) (908) (20,728) 69,329 • $ . 468,764 $ 453,269 $ 7,111,878 $ $ 1,097,771 $ 116;345 • $ 46,345 $ 347,785 $ 26,163 $ 20,765 $ 36,164 • 1, 390 605,260 $ 6,370 80;181 199,166 • 164,412 • 411;313 .953,045 26,163 6;370 20,765 116,345 - . 57,451 82,019 - 607.629.: • (499,776) 7,003,696 (6,370) 469,377 • 57,451 (499,776) 7,085,715 (6,370) 1,077,006 • $ 468,764 $ 453,269 $ 7,111,878 $ $ 1,097,771 $ 116,345 (Continued) • • • 51 CITY OF NEWPORT BEACH Combining Balance Sheet All Special Revenue Funds (Continued) June 30, 1995 Air Quality Ackerman Management Totals Donation District 1995 1994 Assets Cash and investments $ "` 38,974 $ 230,567 $ 12,721,572 : $ 12,555,643 Accounts receivable and accrued revenues 3801-870 250,879 Lease receivable 962,000 962,000 1,0221417 Due from other governments 5,760 1,447,472 1,893,498. Allowance for doubtful accounts (5,760) - - (365,699) Other assets . $9,329 56,957: . Total Assets $ 1,000,974 $ - 230,567 .- :$ 15,215;544 . $ 15,779,394 Liabilities and Fund Balances Liabilities: ': Accounts payable and and accrued liabilities . $ . 372: $ 610,510 $ 730.562 Accrued. payroll 1(390 902 Diie to other funds 691,811 54,883 Deferred revenue 962,000:; 1,161,166 1,179;133 Deposits.: 164,412 169,320 Total Liabilities 962,372: 21629;289 2,134,800 Fund Balances: Resented for encumbrances 1,076,582 813,933, Unreserved; Designated for special projects' -: 38,602 $ 230,567 12;015,819 ':. 12,882,015' ` Undesignated - (506;146)'." (51,354) Total Fund balances 38;602 230,567 12,586,255 13'1644,594 Total Liabilities and Fund Balances $ _1;000,974 $ 230.567 $ ; 15,215,544 $ 15,779,394 52 • • • • • • • • • • • • • • • • • • • • 53 r , LJ 54 0 CITY OF NEWPORT BEACH • Combining Statement of Revenues, Expenditures and Changes in Fund Balance All Special Revenue Funds For the Year Ended June 30, 1995 • Arterial Federal State Highway Adopted • Gas.Tax Financing Forfeiture Revenues: Licenses, fees and permits Intergovernmental revenue. $ :1,224,923 Charges for services • Fines, forfeitures and penalties $' 88,713 Revenue from use of money and property 1.38,799% 15,914, , • Contributions Other • Total Revenues 1,363,722 104,627 Expenditures. Current General government: 101,447 Public safety 226,011 • Community development Community services Capital expenditures 194;117 • Debt service Principal. retirement • Iriterestand fiscal charges; 9. Total Expenditures. ::295.564 226,011 • Excess (Deficiency) of Revenues Over - Expenditures 1,068,1r68:, • (Under) (121,384) Other Financing Sources (Uses): Operating transfers in $ 51,354 • Operating transfers out (83,500) Total Other Financing • Sources (Uses)'; (83,500) 51,354 Excess (Deficiency) of Revnues:` • and Other Sources Over (Under), Expenditures and Other Uses 9 84, 658 51,354 (121,384) • Fund Balances (Deficits), July 1 3,297,406 (51,354) 442,380 • Fund Balances (Deficits), June 30 $ 4,282,064 $ - $ 320,996 r , LJ 54 0 • Tide and Circulation Building Community • Submerged Land Contributions and Transportation Excise Tax Combined Transportation Development Block Grant • $ 980,459 $ 104,854 88,228 $ 40,578 $ 1,485,315 $ 461,973 • 224,883 • 4,077,521 $ 288,394 1,868 28,406 38,772 211,337 50 • 5,371,141 79,350 499,731 106,722 1,513,721 461,973 • 224,616 908 20,728 • 216,973 . 410,499 • 166,819 579,126 437,696 23,308 1,488,481 96,178 245,000 • 140,194 813,690 579,126 662,312 24,216 ' : 1;509,209 ` 461,973 • • 4,557;451 (499,776) (162,581) 82,506 4,512 • (4,500,000) (1,373,797) (100,000) (29,785) • (4,500,000) (1,373,797) (100,000) (29,785) • 57,451 (1,873,573) (162,581) (17,494) (25,273) • 1,373,797 7,248,296 11,124 1,102,279 • $ 57,451 $ (499,776) $ 7,085,715 $ (6,370) $ 1,077,006 $ • (Continued) 55 • 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, 1995 Fund Balances (Deficits), June 30 $ 38,602 $ 230,567 $ 12,586,255 $ 13,644,594 56 • • • • • • • • • • • • • • • • • • • Air Quality Ackerman Management Totals Donation .. District. 1995 1994 Revenues: Licenses, fees and permits $ 1,085;313 $ 1,067,081 Intergovernmental revenue $ 56 ;105 3,357,122 4,648,706 Charges for services 224,883 .107,188 Fines, forfeitures and penalties 88,71.3 178;379 Revenue from use of money and property' 8,017 . 4,558,919 4 126 278 Contributions $ 259,897 ..510,006 517,923, Other;, 50 27,831,' Total Revenues ` 259,897 64,122 9,825,006. 10,673,386 Expenditures: . Current General government 5,760 353,459 Public safety 226,011 174,162 Community development 158,490 31,161 406,624 570,471 Community services 4,050.%. 414,549 453,687 Capital expenditures 2,889,547 2,783,330 ., Debt service Principal retirement 341,178 88,763.;' Interest and fiscal charges 140;194 159,609 Total,Expenddures 1621540.. 36,921 4,771,562 4,230;022 Excess (Deficiency) of ?:Revenues Over (Under) Expenditures. 07,267, 27,201 5,M,444 6.443.364. Other Financing Sources (Uses): Operating transfers in 51,354 ' Operating transfers out -- (76,055) (6.163.137) (4 478;4:07) Total Other Financing Sources (Uses): (76,055) (61111,783) (4,478,407) Excess (Deficiency) of Revnues and Other Sources Over (Under) Expenditures and Other Uses 21,302 27;201 (1,058,339) 1,964,957 Fund Balances (Deficits), July 1 17,300 203,366 13,644,594 11,679,637 Fund Balances (Deficits), June 30 $ 38,602 $ 230,567 $ 12,586,255 $ 13,644,594 56 • • • • • • • • • • • • • • • • • • • PYA CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance • Budget and Actual State Gas Tax Special Revenue Fund • For the Year Ended June 30, 1995 1995 1994 • • • 58 • Variance Favorable . Budget Actual (Unfavorable) Actual Revenues: • Intergovernmental.revenue $ 1,214,450 $ 1,224 923 $ 10,473 , $ 1,226,069 Revenue from use of money and 120,000 138,799 18,799 175,761 • property Total Revenues 1,334,450 . 1,363,722 29,272. 1,401,830 • Expenditures: Current • General government 101,447 (101447) Capital expenditures 3,726,273 194,117 3,532,156 692,432 • 'Total Expenditures 3,726,273 295,564 3,43.0,709 692,432 Excess.(Deficieney) :' • of Revenues over (Under)Expenditufes (2,391,823) 1,068,158 3,459,981 709398 • Other Financing Uses: Operating transfers out (76,Q00) ($3,500) ; (7,500) • Excess (Deficiency) of Revenues Over (Under) • Expenditures and Other Uses (2,467;823) 98058 3,452,481 709,398 Fund Balance, July,1 3,297,406 3,297,406 '2,588,008 • Fund Balance, June 30 $' 829,583 $. 4;282,064 '- $ 3,452,481 $ 3,297;406 • • 58 • • • • • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Arterial Highway Financing Special Revenue Fund For the Year Ended June 30, 1995 1995 1994 Variance Favorable Budget Actual (Unfavorable) Actual Other Financing Sources: Operating transfers in $ 51,354 $ 51,354 Fund Balance (Deficit), July 1 $ (51,354) (51,354) $ (51,354) Fund Balance (Deficit), June 30 $ (51,354) ;$ $ 51,354 $-(51,354) 59 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance • Budget and Actual Federal Adopted Forfeiture Special Revenue Fund • For the Year Ended June 30, 1995 • • 60 • • 1995. 1994 Variance Favorable • Budget Actual (Unfavorable) Actual . Revenues: Fines, forfeitures and penalties $ 400,000 $;: 88,713. $ (311,287) $ 178,379. • Revenue from use of money and.property 29,000 15,914 (13,086) 25,295 Total Revenues 429;000 104;627 (324,373) 203,674 • Expenditures: Current Public safety ,:. 268,599 226,011. 42,588 174,162 • Excess(Deficienc.. of Revenues Over • (Under) Expenditures 160,401 (121 38.4) (281,785) 29,512 Fund Balanoe, :July 1 442;380 442,390 412,868 • Fund Balance : .June30 :$.:.602,781 $;.320,996 $ (281,785) $ 442,380 • • • • • • • 60 • CITY OF NEWPORT BEACH • Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Tide and Submerged Land Special Revenue Fund • For the Year Ended June 30, 1995 • 1995 1994 • • • 61 Variance Favorable Budget Actual (Unfavorable) (Unfavorable) Actual Revenues: • Licenses, fees and permits $ 971,348. $ 980,459 $ 9,111 $ 971,494 Intergovernmental revenue 110,000 88,228 (21,772) 110,421 Charges for services 192,200 224,883 32,683 107,188 • Revenue from use of money and property 3,979,000 4,077,521 98,521 3,672,218 • Other 3,100 50 (3,050) 27,831 Total Revenues 5,255,648`. 5,371,141 115,493 4,889,152 • Expenditures: Current • Community services 449,477 410,499 38,978 401,787 Capital expenditures 621,149 166,819 454,330 346,018 Debt service • Principal retirement 96,178 96,178 76;763 Interest and`fiscal charges 140,202 140,194 8 159,609 • Total Expenditures 1,307,006 813,690 493,316 984,177 Excess of Revenues • Over Expenditures 3,948;642 4,557 451. , 608,809 _ :3,904,975 • Other Financing Uses: Operating transfers out (4,289,212) (4,500,000) (210,188)... (4,078,192) •Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Uses 57,451 '' 398;021 (173,217): (340,570) • Fund Balance, July 1 173,277 Fund Balance (Deficit), June $ (340,570) $ ... 57,451 $ 398,021 $ • • • • 61 • • 62 • CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance • Budget and Actual Contributions Special Revenue Fund For the Year Ended June 30, 1995 • • • 62 • • 1995. 1994 Variance Favorable . Budget Actual (Unfavorable), Actual Revenues: Intergovernmental revenue $ 1,000,000 , $ 40,578 $ (959,422) $. 454,978 • Contributions 389,751 38,772 . ' j350,979) 31,911 Total Revenues 1,389,751 79,350 '" (1,310,401) `' 486,889,. . Expenditures: Capital expenditures 1,455,265 579,1261 876,139 222,343 • . Excess (Deficiency) of Revenues Over." • (Under) Expenditures (65,514) (499 776). (434,262) 264,546 Other Financng,.Uses: • Operating transfers c, t (1,373,797) (1,373 797)" • Excess (Deficiency) of Revenues Over (Under). `- Experidiiures and Qiher Uses (1,439 31.1) (1,873,573) (434;262) 264,546 • Fund Balance, Julyi 1,3731797 1,373,797 1,109;251 • Fund Balance (Deficit), June 30 $ (65,514) $ .(499,776) $ (434;262) . $ 1,373,797 • • • • • • 62 • CITY OF NEWPORT BEACH • Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Circulation and Transportation Special Revenue Fund • For the Year Ended June 30, 1995 • 1995 1994 • • • 63 Variance Favorable • Budget Actual (Unfavorable) Actual Revenues: • Revenue from use of money and property $ 205,000 $ 288,394 $ 83,394 $ 187,281 Contributions 500,000 211,337 (288,663) 298,378 • 499,731 Total Revenues 705,000 (205,269) 485,659 • Expenditures: Current . General government 224,616 (224,616) • Capital expenditures 1,767,611 ' 437,696 1,329,915 135,496 Total Expenditures 1,767,611• 662,312 1,105,299 135,496 • Excess (Deficiency) of Revenues Over • (Under) Expenditures (1,062,611) .. (162,581) 900,030 350,163 • Fund Balance, July 1 7,248,296. 7i248,296 6,898,133 Fund Balance, June.30 $ 6,185,685 $ 7 085 715. $ 900,030 $ 7,248,296 • • • • • • • • • 63 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance • Budget and Actual Building For Excise Tax Special Revenue Fund the Year Ended June 30, 1995 • • .1995 1994 Variance . Favorable • Budget Actual :. (Unfavorable) ` Actual Revenues: License, fees and permits $ 125,000 $ . 104,854 $ (20,146) $ 95,587 • Revenue from.use of money and property 28,000 1,868 (26,132) 22,317 • Total Revenues 153;000 106,722 (46,278) 117,904 • Expenditures Current General government 908 (908) • Capital expenditures 124,015 23,308 100,707 49,990 . Total Expenditures . .124.015% 24,216 99,794 49,990 • Excess of Revenues Over, Expenddures' 281985 82,566':- 53,521 67,914 • Other Financing,Uses Operating transfers out (900;000) (106 000) . (400,215) Excess (Deficiency) . • of Revenues Ovef ee (Under) Expenditures and Other Uses (71.,015) (17,494): 53 521 (332,301) • Fund Balance July 1 11,124 11,124 343,425 • Fund Balance (Deficit), June'30 $'(59;891) $ (6,370) $' 53,521 $ • • • • 64 • • • • • • • • CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes In Fund Balance Budget and Actual Combined'Transportation Special Revenue Fund For the Year Ended June 30, 1995 Revenues: Intergovernmental revenue Revenue from use of money and property Contributions Total Revenues 1995 Variance Favorable Budget Actual (Unfavorable) $ 1,436,000 $ 1,485,315 $ 49,315 49,000 28,406 (20,594) 1,485, 000 1,513,721 28,721 • Expenditures:, Current General government 20,728 • Capital ex. penditures 5,954;744 ' 1,468,481 • Total Expenditures 5,954,744 1,509,209 Excess (Deficiency) (20,728) 4,466,263 4,445,535 1994 Actual $ 2,330,565 • of Revenues Over. Expenditures 4,512 4,474,256 1,030,648 ' (Under) (4,469,744) . Other. Uses: Operating transfers out (29,785) (29,785) • Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Financing Uses _ ' (4,469,744) (25,273) , (4 444;471) 1,030,648ri- Fund Balance, July -1 1,102,279 1,102,279 71,631 • Fund Balance (Deficit), June 30 $.(3,367,465) $ :1;677,006 $ 4,444,471 $' ;1,102,279 • • • • • 65 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, 1995 r 1 66 • is 1995 1994 Variance Favorable • Budget Actual (Unfavorable) Actual Revenues' • Intergovernmental revenue $ 475,000 $ 461,973 $ (13,027) $ 451,395 , Expenditures: • Current Community development 645,996 216,973 429,023' 451,395 • Debt, service, 245,000 (245,000) Tgtal Expenditures 645,996 461,973 184,023' 451,395 • Excess (Deficiency) of Revenues Over ; . ' (Under) Expenditures (170,996) 170,996 Other Financing Uses- • Operating transfers out i. ...(48,900) 48,900 • Excess (Defiaency):af., Revenues; Over (Under).. Expenditures and Other Uses: ; (219,896) 219,896 • Fund Balance, July 1 • Fund Balance.(Deficit), June 30 $_ (219,89 6) $ "' - $ '219;896' $ • • • • r 1 66 • CITY OF NEWPORT BEACH • Statement of Revenues, Expenditures and Changes In Fund Balance Budget and Actual Ackerman Donation Special Revenue Fund • For the Year Ended June 30, 1995 • • • Revenues: Contributions 1995 Variance Favorable Budget Actual (Unfavorable) $ 259,896 $ 259,897 $ 1 1994 Actual $ 185,000 • Expenditures:. Current • Community development 77,0281 158,490 18,538 103,800 Community services 75,8681 4,05G 71,818 51,900 Debt service • • • • • • • • • • • • Principal retirement 7,000. 7,000 12,000 Total Expenditures. 259;M.:: 162,540 97,356 167,700 Excess of Revenues.: Over Expenditures'. 97,357.. 97,357 17,300 Other Financing Uses:..; . Operating transfers out (76,055) (76,055), Excess of Revenues. . Over Expenditures •and Other Uses. 21;302. 21,302 17,300. Fund Balance, July 1 17,300 17,300 Fund Balance, June 30 $ .17,300 . `$ 38,602 $ 211302 $ 17,300 67 0 68 • • • • • • • • • • • • • • • • CAPITAL PROJECTS FUNDS $'A ,y d I� "S i ,�.t I• All, _ � M i i H Water System Waste Water System Storm Drain System &ale: I' Storm Drain Storm Drain C ,ch as5ln Repotl \ .� I CI112931 C11 16632 C1116_031 CRIF 1134 / tYPC Cn CIt C11 CB icngh 11 ] 10 9 a I leigh, 5 A 4.25 .S IIKa swR skeet swo $IRtt Cnnm 18 19 18 18 IV 16-015 sell. Ilk-MIS 'rR rt6015 9'R 06015 l 4 wol5 78' R� }, Al Ni 11 All Water System Waste Water System Storm Drain System &ale: I' Storm Drain Detail Utility Facilities Management. The GIS is currently mapping the City's underground utilities, including water, waste water and storm drains. Data about each feature is captured in a Oracle database. The utilities can be viewed together and relationships analyzed or information can be extracted from either map or database queries about individual utilities, including location, size and type, capacity, date of installation, source information, maintenance schedules, etc. Storm Drain M.IvIle Report .� Tag MnIF_f)id smell 015 I!)C, SIIPPI y ! 197.6 197 189.2 np,�_Plcv 1:10L_elc 189.5 IB9.2 Conni A? 30 IV 16-015 Coll, 53 IR / 78' R� Canna 30 Is Souac nk-M015 'rR06015 \ Map M;I Mll nRtfi nay\ Storm Drain Detail Utility Facilities Management. The GIS is currently mapping the City's underground utilities, including water, waste water and storm drains. Data about each feature is captured in a Oracle database. The utilities can be viewed together and relationships analyzed or information can be extracted from either map or database queries about individual utilities, including location, size and type, capacity, date of installation, source information, maintenance schedules, etc. 0 CAPITAL PROJECTS FUNDS 0 • • • 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 follows: The Capita! Improvement Fiaid is used to account for the receipt and expenditure of City funds • specifically identified:for capital improvement projects. The Assessment District Fund is Used to account for the receipt and expenditure:'.o1' funds • received from Special Assessment Districts for capital improvement projects The-'Central Library Construction Fund -is used to account for the receipt and expenditure -of • funds for the construction of the City's new Central Library. • • • • • • • • • • • • 69 CITY OF NEWPORT BEACH Combining Balance Sheet All Capital Projects Funds June 30, 1995 Central Capital Assessment Library Improvement District Construction Assets Cash and investments $ 1,100,000 , . $ 416,242 $ Total Assets $ 1,100,000 $ 416,242 $. Liabilities and Fund Balance Liabilities: Accounts payable and accrued liabilities $ 15,523 Due.to other. funds Total Liabilities 15,523 nd,balance 70 • • • • • • • • • • • • • • • • • • • • • • • • • • • 32,949. 71 • 1995 Totals 1994 • $ 1,516,242 $ 2,607,383 . $ 1,516,242 $ 2,607,383- • • $ 15,523 $ '206,850 .1;198,032 403,550 • 15,523 1808,432: • • • • • • • • • • • • 32,949. 71 CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Capital Projects Funds For the Year Ended June 30. 1995 Fund Fund (Deficiency) of nues and Other ;es' Over `(Under) nditures and Other Uses 475;289 1, 226,480 (Deficits), July 1; Central .,Assessment Library District:? : Construction 1,100,000 $ 233,093 14,131 $ 285;674' 285,674 247,224 45,366 20,043. .- 240,308 227,181 Fund Fund (Deficiency) of nues and Other ;es' Over `(Under) nditures and Other Uses 475;289 1, 226,480 (Deficits), July 1; $ 1,100,000 (74;570) (226,480) ;June 30 $ 1,100,000 $ 400,719, 72 • • • • • • • • • • • • • • • • • • 0 • Totals 65,409, 4,728,482 1995 1994 • 19,787 (701) (49,467) $ 233,093 $ 363,694 • 14,131 172,559 285,674 18,486 • • • • • • • • • • • • • 532,898 554,739 65,409, 4,728,482 467,489 (4,173;743) 234,981 19,787 (701) (49,467) 234,280 (30,080) 73 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Assessment District Capital Projects Fund For the Year Ended June 30, 1995 Capital Fund 1994 Actual $ 18,486 :ndiCures 1561166'.. 45,366 110,800 99,683 (Deficiency) of Revenues =u Financmg`Sources(Uses) 234,981 234,981 (49,867) (Deficiency.) of enues:.and:,:Other 74 • • • • • • • • • • • • • • • • • • • 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, 1995 . 1995 1994 • • • 75 Variance • Favorable Budget Actual (Unfavorable) Actual Revenues: • Intergovernmental $ 233,093 $ 233,093 $ 363,694 Revenue from use of money and property 14,131 14,131 172,559 . Contributions • Total Revenues 247,224 247,224 536.253 .. Expenditures: . Capital expenditures $ 398,014. 20,043 377,971 4,628,799 . Excess (Deficiency) • of %Revenues Over (Under) Expenditures (398;014) 227,181 625,.95 (4,092,546) • Other Financing.$ources (Uses): Operating transfers in 19,787 • Operating transfersout (701) (701) Total Other Financing Sources (Uses) (701) (701) 19,787 • Excess (Deficiency). of Revenues . and Other Financing Sources • Over (Under) Expenditures antl`Other Financing Uses 226,480 624,494 (4,072,759),1- • Fund Balance (Deficit) July 1 (226,480) (226,480) 3,846,279 ', • Fund Balance (Deficit), June 30 $ (624,494) $ $ 624,494 $ (226,480) • • • • • 75 76 e • ENTERPRISE FUNDS 77 Assets CITY OF NEWPORT BEACH Combining Balance Sheet All Enterprise Funds June 30, 1995 Cannery Village Parking Current Assets: Cash and investments Accounts receivable and accrued revenues Due from other governments Allowance for doubtful accounts Inventory of materials and supplies „at cost Restricted assets - cash and investments Other assets Total Current Assets Water Wastewater {21,573,130) 24,733,522 $ : 1;458,183 . 2,721,936 362;981 2;698,064.. _ 41,W L% .- (2,698;064). (41,847) 44;110 Accrued interest payable 1,739 505f 460,458 29,239,073 1,821;164 Fixed Assets:, Land ^ $ 039,163 L 2,016;450 Structures 107,471 L L 34,691;924 34,596,750' Equipment 568;799_ 31,460 Construction in progress , 4,889,033' rl Assets abort (26897).:; (21,266,69,1) {21,573,130) ,ts 1117737: 20,919,405 10,055,080 $ 1,117 137 C$ 50,158,478 $ 11,,876,244 EgUity id accrued- liabilities : $; : 1,780,757' $ 15 332 Accrued payroll i 37;007 12,1637 Dueto'atherfunds $ 661:,822 Deposits 97,843. Accrued interest payable 460,458 Bondspayable - current 820;001). Total Current Liabilities 661,822 3,196;065 27,969 Noncurrent hatnld�eS:e Bonds payable 16,280,000 Total liabilities,,.,, 661,822 19,476;005 27,969 Fund Equity: Contributed capital 4,753,734 9,145,593 Retained Earnings Unreserved 455,915 25,928,679 2,702,682 Total Fund Equity 455,915 30,682,413 11,848,275 Total Liabilities and Fund Equity $ 1,117,737 $ 50,158,478 $ 11,876,244 Ye.] • • • • • • • • • • • • • • • • • • • • 79 Totals • 1995 1994 • $ 26,191,705 $ 3,084,917 14,296,003 2,777,042- 2,739,911 • (2,739,911) 44,110 54,192 1,739,505 95,337 • 81 31,060;237 17,222,655 • 3,055,613 3,056,613 66,396,045 65,935,160. • 620,249 547,463, 4,8B9,033 1,241,886 . (42,868,716) (41,651,274) • 32,092,222 29,129,848 • $ 63,152,459 $ 46,352,503. . • $ .1,796,089. $ 11336,540 44,644 '. 38,887 661,822. 911,523 • 97,843 103,980 460,458 • 820,000 3,885,856 2,390,930, ` • 16,280,000 • 20,165,856' 2,390,930 13, 899, 327 13, 853, 747:: . 29,087,276 30,107,826 • 42,986,603 43,961,573 • $ 63,152,459 $ 46,352,503 • • 79 CITY OF NEWPORT BEACH Combining Statement.of Revenues, Expenses and Changes in Retained Earnings All Enterprise Funds For the Year Ended June 30, 1995 Cannery Village Parking Water Wastewater Purchase of water 7,255,987 Salaries and wages 2,189,594. 697,416 Depreciation 4,299 757,556 '. 713,900 Professional services 793,784 1'57,701 ' Maintenance and supplies 455,250 232.164 Systems maintenance 212,115 410,465 Others` 564,388 86,891 Total Operating Expenses 4,299 .' 12,228,674 21298,537 'Operating Income (Los's) 94,742 ... 1,435,633 (292,600) Nonope�ating Revenue s(Ex06hses) Intergovernmental revenue `: 60,588 19,122' Interest income <. 521 ' -1;0021059 55 1205 Other. income Interestexpense <, (350,579) Bond issuance cost (396,230), ; Investment,losses (2,¢98,064) (41,847) Loss on sale.of fixed assets i vuv leu l{yPei dung Reverju (Expenses) 521 (2,291,326),; 32,480. Income (Loss) Before Operating Transfers::: 95,263 (855,693) , (260,120) Operating transfers out Net Income (Loss) Retained Earnings, July 1 Residual equity transfer out Retained Earnings, June 30 360,652 $ 455,915 ($55,693) (260,120) 26,784,372 $ 25,928,679 80 2,962,802 $ 2,702,682 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Totals 1 1995 $ 15,552,110 $ 14,733,446 217,175 173,649 15,769,285 14,907,095 7,255,987 6,846,369 2,887,010 2,615,523 1,475,755 1,460,989 951,485 982,439 687 414 451 531 622,580 659,660 651,279 588,596 14,531,510 13,605,107 1,237,775 1,301,988. 79,710 1,148,685 843,795 74,872 ,.':(396,230) (2,739,911) (26,374) (2,258,325) 892,293 (1,020,550) 2,194,281 (489.147) (1,020,550) 1,705,134 30,107,826 28,935,092, (532,400) $ 29,067,276 $ 30,107,826 81 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Enterprise Funds For the Year Ended June 30, 1995 Cannery Village Parking Water Cash flows from operating activities Operating income (loss) $ , . 94,742 $ 1,435,633 Adjustments to reconcile operating income Net cash provided (used) by operating activities to net cash provided by operating activities: 2,468,830 Depreciation 4,299 757,556 Other revenue 60,588 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (287,190) (Increase) decrease in due from other governments '' (2,698,064) Increase (decrease) in allowance for doubtful accounts 2,698;064 (Increase) decrease in inventories of materials; ; and supplies at cost 10;082 (Increase) decrease in other assets 81 Increase (decrease) in,accounts payable (21,148) 488,017 Increase (decrease) in accrued payroll 10,200 Increase (decrease) in:due to other.funds (173,751) Increase (decrease) in.deferred revenue Increase (decrease) m deposits .. (6;137) Total, Adjustments (190,600) . 1,033,197 Net cash provided (used) by operating activities (95,858) ' 2,468,830 Cash flows from noncapitalfinancing activities: Operating transfers to other ;funds . Cash flows from,capital and related financing activities. Acquisition of capital assets (3,791;361) Proceeds from'sale (loss from disposal) of capital: assets Proceeds from bond issuance 16,703;770 Interest paid (350,579) Nbtcash used for capital and related financing activities = 12,561;830 Cash flows ":investing activities: Interest on investments - 521 1,092,959 Loss on invest maitts (2,698;064) Net cash provided by investing acbvites`;;;_ 521. (1,605,105) Net increase (decreas4)iJh cash and rash equivalents (95,337) ;,: 13,425;555 Cash and cash equivalents, July 1 $ 13,047,472 Cash and cash equivalents, June 30 $ - $ 26,473,027 Noncash Activities: Contributed Capital $ - $ 60,580 Capitalized accrued interest $ - $ 460,458 82 • • • • • • • • • • • • • • • • • • •Wastewater 1995 Totals 1994 . $ (292,600) $ ' 1,237,775 $ 1,301,988 • • • • • • • • • • • • • • 713,900 1,475,755 1,460,989 19,122 79,710 74,872 (20,685) (307,875) (77,540) (41,847) (2,739,911) . (701,158)_ 41,847 2,739,911 (222,664) ,; 12,339,146 10,082 14,441 81 2,609 (3,514) 463,355 453,120 2,955 .13,155 (64,234) 13,358 (173,751).. (122,047) (7) 13, 540,070 (6,137) (16,127) . .7 11,778 1,554,375. 1,726,076 . 419,178.. 2,792,150. 3,028,064 (489,147) (222,684), (4,014,045) .`:(2;7221438). . 46,618- 16,703,770 (350 .'579) (701,158)_ (222,664) ,; 12,339,146 (3,376,978) ., 55,205 1,148,685 ': 843,795.. (41,847) ;.(2,739,911) 13,358 (1591;226) 209,852 13, 540,070 : 706,892 $ 1,248,331 $ 14,391,140 $ 13,684,448 $ 1,458,183 $ 27,931,210 $ 14,391,340 $ $ 60,580 $ 202,708 . $ - $ 460,458 $ - • 83 0 84 0 • INTERNAL SERVICE FUNDS r � LAND USE CHANGES 1990 -1993 • • • , ... R1 nv£ • � o ' � Tce • � . .ilYl' r.:. E Q? 1 wLa i' F c DATA EXTRACTED FROM THE SOUTFERN CALIFORNIA AERIAL LAND USE CONSORTIUM - • t993 LAND I.tSE CLASSIFICATION VACANT OR ACRLTIr.I L LANG 115E 11893) • Aertcge 2t5)5 £ Sii TO A USE CHANCE VACANT CR ACRICLLTLRAL (1990) TO ANY LQaAN pt aULT -UP LN9 USE S Attsa9c aI0 f.... • ® LOAD V9E CHANCE: OF LT fit LAW (1990) a -; T��O � U90AN OR � T -LIP LAW IJSE N O'— R T H • y qMe y� m a 4bS�iii 4m+�m� IaM Vm�Aatlfrcib. 9e:da' T � 5pb ,xF. 5 �± a'.. • Newport Beach and Vicinity Land Use Study. The Southem California Association of Governments (SCAG) commissioned the origi- • nal Aerial Land Use Study completed in 1990. The first periodic update of the study was completed in 1993. The orginal study and the 1993 update were imported into the GIS. The • data can be accessed, analyzed and displayed with data developed by the City. The GIS was used here to display vacant or agricultural land uses, as well as devel- opment in vacant or agricultural areas and land use changes in the City and adjacent areas initiated between the 1990 and 1993 studies. • INTERNAL SERVICE FUNDS 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 brogram as wellf:as the City's accurriulated liability for Compensated Absences. The Equipment Fund'is used to account for the cost of.niaintaining: and ' replacing the City's rollinz stock fleet and the rental of the fleet to operating departments. • • • • • • • • • • • • • • • • • 85 Assets Current Assets: Cash and investments Accrued revenue Deposits with other agencies Inventory of materials and CITY OF NEWPORT BEACH Combining Balance Sheet All Internal Service Funds June 30, 1995 Insurance Totals Reserve Equipment 1995 _ 1994 $ 816,318 ,$ 816,318 $ $ 29,599 20,335 49,934 631,284 ' 631,284 3,001,513 631,284 supplies, at cost 154,054 154,054. - 167,210 Total Current Assets 660;883 - 990;707 1,651;590 3,800,007 Fixed Assefiv 12.400. ' 13,329,: Equipment 6,203,567 6,203,567 4,981.,437 Accumulated depreciation (2,461,174) (2,461,174) (1,149;618) Net Fixed Assets 3,742,393 3,742,393. 3,831,819 Total Assets $. 660,883 $ 4,733,100 , '$ 5,393,983 $ 7,631,826.. Liabilities and Fund Equity 1,000 000,' ces- current 700,0001:-1 Accounts: payable E. Accrued payroll Due tq.other.funds Capital leases- can Worker's compens< General I i abi I ity - -cu Compensated abse Total Current I Noncurrent Liabilities: Total nc Total Fund Equity: Contributed Capital 6 accrued liabilities $ i 117;410 $ 75,469 $ 192,879 $ 253,414 101,312 16,990 118,362 12.400. ' 13,329,: 13,329 nt 199(273 199,273 112 275 ion -- current 1,850,000, 1;850,000 950,000 ent 500,000' .. 500,000 1,000 000,' ces- current 700,0001:-1 700,000 650 000 abilities'` 3,282,111. 291;732 3,573,843 2,978089 525,378 525,378 371,499 ion 3 568,315 - 3,568,315 4,489,744 -3,738,056 3,738;056 6,323,396 ices 61606;642 ^ " ' 6P606,642-:: ' - : 61443;226 abilities 13,913,013 525,378 14P438,3911 17,627,865 17,195,124 817,110 18 012,234 20,605,954 4,097;648 4,097,648 4,097,648 • • • • • • • • • • • • • • • Retained Earnings (Accumulated Deficit): Unreserved (16,534,241) (181,658) (16,715,899) (17,071,776) • Total Fund Equity (16,534,241) 3,915,990 (12,618,251) (12,974,128) Total Liabilities and Fund Equity $ 660,883 $ 4,733,100 $ 5,393,983 $ 7,631,826 • 86 • • Insurance Totals • CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenses 1995 and Changes in Retained Earnings • All Internal Service Funds For the Year Ended June 30, 1995 • Insurance Totals • • 87 Reserve Equipment 1995 1994 • Operating Revenues: Charges for services $ 2,657,646 $ 3,215,071 $ _ 5,872,717 $ 5,771,444 Other 2,684,366 9,700 2,694,066 44,439 • Total Operating Revenue 5,342,012 3,224,771 8,566,783 .. 5,815,883 • Operating Expenses: Salaries and wages 983,805 983,805 956,408 Depreciation ` 1,387,572 1,387,572 1,149;618 • Professional services 46,331 46,331 : 77,814 Maintenance and supplies 240,390. 240,390 129,370 Fleet parts and supplies - 419,766 4191766 445,998 • Workers' compensation 3,748,998 3,748,998 3;506,018 Claims.andjudgments . 636,834 636,834 3,554,026;' Compensated absences 1,854,378 1,854,378 2,133,384 Total Operating Expenses 6,240,210 3,077,864 9,318,074 11;9$2,634 - •Operating. Income(Loss) (898,198) 146,907 (751,291) (6,136,751),. Nonoperating Revenues (Expenses) . Intergovernmental revenue 29,997 29,997 Interest income 29,599 29,590.' Gain•on sale of fixed assets 601240 60,240 38,959 • Interestexpense. (24,092) (24,092) Total Nonoperating Revenues (Expenses) 29,599: 66,145 9,5,744 38,959:' • Income (Loss) Before Operating Transfers: (868,599) 213,0 . 52 (655,547) (6,087;792) • Operating transfers Operating transfers in. 1,373,797 1x;373,797 • Operating transfers out (362,373) ' ' (362,373) _ '' (818,131) Total operating transfers 1,373,797 (362;373) 1,011,424 (818,131) • Net Income (Loss) 505,198 (149,321) 355,877 (6,915,923) Retained Earnings (Accumulated • Deficit) July 1, (17,039,439) (32,337) (17,071,776) (10,155,853) Retained Earnings (Accumulated • Deficit), June 30 $ (16,534,241) $ (181,658) $ (16,715,899) $ (17,071,776) • • 87 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Internal Service Funds • For the Year Ended June 30, 1995 M • • • Insurance Reserve Equipment • Cash flows from operating activities Operating income (loss) $ .. (898,198).:;_ $ 146,907 Adjustments to reconcile operating income • to net cash provided by operating activities: Depreciation 1,387,572 Other revenue . 29,997 • Changes in operating assets and liabilities: (Increase) decrease in accrued revenue (20,335) (Increase) decrease in inventories of materials • and supplies; at cost 13,156 Increase (decrease) in accounts payable Increase (decrease) in accrued payroll (60,735) 101,372 200 4,590 • Increase (decrease).in due to other funds': unds 13,329 Increase.(decrease) in workers'. compensation (21,429)'. Increase (decrease)in general liability (3,085,340); • .Increase (decrease).ih compensated absences ` 213,416 Total Adjustments. (2,839,387), 1,415,180 • Net:cash provided;(WSed).by operating activities ., (3,737,585) 1,562,087 Cash flows from noncapital'financing activities: • Operating transfers from. dher funds 1 ,373,797 . Operating transfers to other.funds (362,373) Net cash,prowded (used) by • 'noncapital financing activities • 373,797 (362.373) Cash flows from capital andrelated • financing activities. Payment of capital lease obligation (242;895) Acquisition of capital assets (844,374) • Proceed§ from sale of capital assets 60240 Interestpad (24,092) Net'casn used for capital and • related financing activities (1,021,121) Net increase(decrease)in cash • and cash equivalents (2,363,788) 178,593 Cash and cash equivalents, July 1 2,363,788 637,725 • Cash and cash equivalents, June 36 $ : $: Noncash Activities: • Contributed capital $ $ - Acquisition of equipment by capital leases $ $ 453,772 • M • • • Totals H- 011 -�W!I 1 • $ (751,291) $(6,136,751) • 1,387,572 1,149,618 29,997 • • • • • • • • • • • • (20,335) (631,284) 13,156 (167,210) (60,535). 253,414 105,962 12,400 13,329 (21;429) 1,736,9.02 (3,085,340) 904,238 213,416 1,114;948:.. ' (1,424,207) 4,373,026.: (2175,495) (1,763;725), 1,373;797: (362,373) (818131) 1,0,11,a424 ':. (818,431) (212;695p; (136,367) .. , (844,374) : (407,665) 60,240 182,976 (24,092) (1,021,121) (36:1;056) (2,185,195) (2,942,912)`' 3,001,513 5,944,425 $ 816,318 $ 3,001,513 $ - $ 4,097,648 • $ 453,772 $ 620,141 • • M 0 90 • • Analy.:. Awn.. • • • • • • • • • • • Sewer Prrmp 54a0orn • ® :5er A • .Pomp Sn 5ile Na 2 3 • 4 6 6 : • 9 ]9 11 12 lj • 14 15 16 17 10 . 19 20 21 22 23 • za AGENCY FUNDS Year M' lasalion Cnnsrmoion 1961 6lnd Slr rt 1959 4Rh Srccer 1929 DAo isle BaY Islam) 1970 ❑nda Isle 1926' Hadar LSh "`I 1953' Coigns lxh °d 194: Dianpnd n.anvc 1948 Smlon S(hdr) 19:5 19th SUect(WCSt) 1978 Harbor Ridge 1974 CarNri.. A \'CItUC CM1hLtCme 1452 Main Death 1946 ..'uilY (1958) 1992 ZZOGanuo Shorn 1 461 Ddse 1%2 Mahurs Drive 1963 Jamboree Ilmd 1968 Brcn Tma 1969 Back Wy Driv 1975 Mo enad 19:1 M., Avemm 19:9 Newport pier AGENCY FUNDS Agency Funds 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,belosy:: The Deferred Compensation Fitud is used to track the assets of the City's deferred compensation plan for its employees. The Special Assessment Fund is used to account for funds received from affected property owners and payable to holders of 1911 and 1915 Act bonds. The Special Deposit Fund is used to account for special deposits held by the City in its fiduciary capacity. • • • • • • • • • • • • • • • • 91 92 • • CITY OF NEWPORT BEACH Combining Balance Sheet • All Agency Funds June 30, 1995 • Deferred Special Compensation Assessment Special Deposit • Fund Fund ,Fund • Assets: Cash and investments < $ 22,067,690 $. 299,297 $ 539,177 • Total Assets. $ 22,067,690 $ 299,297 $ 539,177 Liabilities: • Due to bondholders $ 299,297 Due to others ` . Deferred compensation $ 22,067,690 $ 539,177 • Total • Liabilities $ 22,0.67,690 $ 299,297 $.539,177 • • • • • • • • • 92 • • • • • • • • • • • • • • • • • Totals 1995 1994 $ 22,906,164 $ 19,527,811 $ 22,906,164 $ 19,527,811 93 94 I i U • • CITY OF NEWPORT BEACH Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1995 • Balance Balance June 30, 1994 Additions Deductions June 30, 1995 • Deferred Compensation: Assets Cash and investments $ 19,117,796 $ 4,302,818 $ (1,352,924) . $ 22,067,690 • Liabilities Deferred compensation $ 19,117,796 $ 4,302 818 $ (1,352,924) . $ 22,067,690 • Special Assessments: • Assets Cash and investments $ 32$,127 $. ' 373,079 $ (398,909) ,$ 299,297 • Liabilities Due to bondholders $ 325,127 $ 373,079 $ ', (398,909) $ 299,297 Due to property owners . Total Liabilities $ 325,127 $ 373,079 $ j (398.909) $ 299,297 • Special Deposits:' ..Assets..... Cash and investments ; $ 84;888 $ 548,556 $ (94,267) $ 539,177 Liabilities ' • We to others °. $ 84888 $ 548,556 $ (94,267) $ 539,177 Totals All Age; ncy Funds: • Assets Cash and investments $ ' 19,527;811 $. 5,224,453 $ (1',846,100) $ 22,906,164 • Total Assets $ 1`91527,811 ' $ 5,224 453 $.(1`,846,100) $ 22,906 164 • Liabilities Due to bondholders $ 325,127 $. 373,079 $ : (398;909) $ 299,297 • Due to others 84,888 548,556 (94,267) 539,177 Deferred compensation: 19;1.17,796 4,302,818 (1,352,924)!, `22,067,690 Total Liabilities _ $ 19,527;811 $ 5,224,453 $ (1;846,100)" $ 22,906,164 • 94 I i U • • • • • • • • • • • • • • • • • • • • • • • HEMEND ACCIDEMS OCC. ILCAIiON I AVCCAW AVE fll WATERMONTER 1 C STMWYE el A ak AVE 1 coIW HwYE el DANUA AVE 12.. XVIYE al SOLOEMOOAVE I COASTHWTE u IUr£L OR 6 CGASr HWYE Y HEVOTRDYE AVE 6 COABT.ME at IN6AVE 6 COWMwYE at MAGNEAVE 2 COASTMWYE at URNSPURAVE 2 CMSTHVIYE al IIACARMUE MW a COAST HWYE w YM MnHA 6 COAHTHWYE e NARIOaMAVE I IXWHTHWVE 1 MORNINOCANYON RE I S*as` WVE G N,,,SSUTAVE 2 CWHTH E al ORCHIDAYE I COAHaMWYE el FOINSETEIAAVE Y 2 DO'S"M E a, ROM AYE 1 WEILER al MASTRWYE t µC "WRHL V CoURN /YE 1 IMRGUEERVAVE CI NASf MNYE t RAXOMAUSAVE a FIFMAVE t- RARO66D6AVE at TMRDAVE I CCEIN BLVO W OCENIW Jan. through Oct. Broadside Accidents Corona Del Mar Jan. Uvu Oct. Rev —End Accidents Corona Del Mar BROADMDE ACCIDENTS Sol IMAM. 2 WASTHM'E t AVOGAWAVE a REWPMEE OR t MINMR SO N OMW.THRAVE t MOOR OR a UPMSFUR AYE t SAVNEW DR M WUIEHRCOAVE 2 oOASEMME NE M UOfnOGE 4W3 2 cOW HWYIS u .MSMNEAA E G HME M IMRC WS AVE I COAST MWE N ORCNIO AVE I COAST HWYE N RGNEETEN AVE 2 COASTH E 1 SEAWPRD RO 2 NARGNEROE PVE aI FOURTHAVE i OREMDAVE I o. HWYE t PMNSEEDAAVE al f/J/BT BVHE t SEtbNDAV£ al I4MRUAFAVE Jan. through, Oct. Sideswipe Accidents Corona Del Mar AccouNT GROUPS SIDESWIPE A QDENrB ac. LCCATpR I AVOCPDO AVE u FOURTHAVE 2 WASTHM'E a WV`EREaD AVE 2 EOASTHWYE at HISAVE 1 COABTHWYE at MPRF^AEDAVE 1 0OAHTHwYE a TT MNSEIAAVE COASrHW/E a Po twe FOURTH AVE ri IRIS AVE 2 GOMEHRW AVE u WASI HWYE 1 GOMENROD AVE M R MAVE 1 IR @PVE a THIRDAVE 1 IAR 13 AVE at TNIRDAVE 1 HMGUMWEA m OAST MEE t N IGOWAVE I acaslHHY E t WRCISSMAVE a THIRDAVE 1 ORCHDAVE M WASTI E I OMHDAW v1 FffMAVE 1 OMRIGGERM a1 NEEL OR 1 SEAVIEWAVE AWiGUEW1EawE 1 E.DAVE W ""AVE 1 THIRDAVE at IARNSPURAVE Corona Del Mar Auto Accidents -January through October 1995. The Oracle database was used to summarize three different types of auto accidents; rear -ends, broadsides and sideswipes in the Corona Del Mar area. This data was passed to the GIS and used to plot the incident locations. Oracle reported the number of occurrences per accident type and produced a report for each. Data of thLS type is very useful to the Police Department and Traffic Division of the Public Works Department for traffic enforcment and planning. ACCOUNT GROUPS • This page left blank 95 • • EIS CITY OF NEWPORT BEACH Comparative Schedule of General Fixed Assets • By Source June 30, 1995 • General Fixed Assets 1995 1994 • Land $ 24,580,998 $ 23,803,066 • Structures 38,421,877 36,710,429 Equipment 10,349,188. 9,939,360 • Total General Fixed Assets $ 73,352,063. $ 70;452,855 • Investment in General Fixed Assets Total Investment in Fixed Assets " $ 73,352,063 $ 70,452,855 • • • Sources ate not readily available. The City is in the process of developing this information for presentation in its Comprehensive Annual: • Financial Report fo�I a year ending June 30, .1996. • • • • • • • • • EIS • • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH General Long -Term Debt Account Group Comparative Schedule of General Long -Term Debt June 30, 1995 Amount Available and to be Provided for the Payment of General Long -Term Debt Amount available in debt service fund Amount to be provided for the payment of general long -term debt General Long -Term Debt Payable Certificates of participation payable Capitalized leases Note payable Loan payable . 97 1995 1994 $ 561,193 ' $, 668,754 9 941 342 10,550,624 $ 10,502,535 $ 11,219,378 $ 7,235,000 $ 7,370;000 248,296 488;961 3,01.9,239 3,115,417 ' 245,000: $ 10,502,535 $ 11,219,378 0 98 • • STATISTICAL SECTION • • • • Water Pressure Zones A....bo.i 1... C1o....tl.... • Zone 1 • • • • • • Zone 5 Booster Pump Station Multi -Stage Turbin Pumps Elevation 0' - 25' • Zone 2 Elevation 25'- 170' Zone 3 • Elevation 170' - 355' Zone 4 Elevation 355' - 540' • Zone 5 Elevation 5401- 725' • • • • • • Zone 5 Booster Pump Station Multi -Stage Turbin Pumps • • General Information: Date of Incorportation ....... Form of Government......... • • • • • • • • • • • CITY OF NEWPORT BEACH Miscellancous Statistics June 30, 1995 Population: Permanent ..................................................... Summer............................................ ............ Tourist............................................................ Housing units ................................................ Occupancy Factor per dwelling unit..: ::..... .....................1906 Council-Manager Area: Square Miles Acres Land... ............................ ............ ....... ................... 14.01 ................................. ...... .... 9,024.0 Bay. .._ : ....................... ......... ­V ... ......... ..................... 2.04.......... ......... ... ; ......... ....... 1,3054, Ocean ..... ....... .... ........ 0.20.00 ...................................... ........... 12,800,0: Total ........................ ....... ........ . ....... 36.05 ............. ........................... 23,129.6, Population Density: y Per square mile ...... ...... ........... .............................................................. 5,003.4 Per acre ......... ....... ....... ...................................... ............................ 7.76, Recreational Area::: Acres .,Ocean Water ...... ................................. ...... ..... ................. ........................ ............... 12,8001.1..%, HarborWaters........... ....................... . ...............................:....1,306 Parks ... ............................................. .................... ........ ................ ................................ 156:. Be he ac ........ ..................... .. ...... 71— .............. ......... .............. ........... total ......... ...... ................................. ....... .......... ..... 14,465: Water Frontage: Miles Ocean.......... ....... ............... ............. ....... *, ................ ............ Harbor............ ......... ...........'.::.. ...................6........... .................. ............. ............. .'_35.94 Total...... ....... ............ ......... .............. ........ .... ....... .......... ............. Newport Harbor. Boats ......... .................... ...... ...... ...... .......... ........ 9,000 Residential.. ....... ........... ......................... .................... 1,230 Commercial Slips and Side Ties, ............. ...................... .. :.....................2,119 Bay Moorings ........ ;66_;..:; .............. ............ ............. Public Safety: Police Fire Marine Numberof Stations ........................... 1- ..... .............. 6 ........... 6 ............................................ 1 Number of Personnel..................... 137 ... _ ........... - ................... 105 ...... 6 .... 6 ............................ 54 99 Governmental Revenues by Source (1) (Last Ten Fiscal Years) • Fines, Licence, Inter- Charges Forfeitures Revenue from • Fiscal Fees and governmental for and Use of Money Year Taxes Permits Revenue Services Penalties and Property Other Total • 1985 -1986 $ 28,685,016 $ 2,185,936 $ 10,915,059.$: 3,700,630' $ 3,039;221 $ 6,661,032 $ 2,631,416 $ 57,818,310 1986 -1987 31,663,304 2,387,411 7;132,740 3,963,061 2;372,335 6,907,803 5,298,061 59,724,715 • 1987 -1988 34,076,119 2,294;447 - 8,157,975. - 4,266,091 2,881,443 7,528,267 5,053,836 64,258,178 1988 -1989 37,245,279- 2,517,205 - 6,858,019 - -, 4,821,564.. 2;964,864 8,391,781 3;649,089 66,447,801 • 1989 -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 3,114,983 9,999,416 3,555,699- 74,452,539 • 1991 -1992 - .40,466,232_. -: -- 1,903,044 16819,561 -- 4,609,812 3,053,246 '9,611,524 2,722,037 ` -- .73,185,456 1992 - 1993 `- 38,471,775 1,795,238 7,621,643 -., 41703,200 2;582,969 :9,469,060, 1,243,093 65,886,978 . 1993 -1994 `39,809,139 1,948,855 8,993,289 '. 5,077;369 2,706,194 8,660,599. 2,139,567 69,335,012 '. 9,676,426 • 1994 -1995 39,719,830 2,198;186 .10;7041000 5,109,513 3,156,530 1,300,722 71,8651207 (1) Includes General, SpecW R6Nienue,.Debt Service and Capital Projects Funds. • Governmental Ekpenditures by Function (1) • (Last Ten Fiscal Years) • Fiscal '. General I. Public Public Community Community Capital 'Debt Year Government Safety Works - Development Services Expenditures Service Total • 1985-1986, $.� 4,736,475 $ 21,337,158 - $ 7,468,089. $ 2,127,784; (2) $ 4,394,728 $ 11,971,392' $.5 2, 035,626 1986-1987 `" 5,158,407 20,371,613. 13;668,069 '- 447,248 - 5,026,323 12,522,935 57,2249595 • 1987 -1988 44878;412 21,845,493 - ...139043,460 450,234.. . - 16,657,535 '.: %62,109,438 1988 -1989 5,249,05 22,014,671 .- 13,870,397 1,6039571. - 5,996,335 11,175,926 59,909,595 • 1989 -1990 5,365,259:- _ 26,729,452 - 15;804,705 185,924 6,609,717 .. ` 23,611,143 78,306,200 1990 -1991 5,274,572 26,911,630 17,247,313 - -. .183;327 7,283,300 18,768,787 75,668,929. . 1991 -1992 2,937,016 30,987;412. :- 12,372,598 3,411,623 - 8,869,639 16;034;084 74,612,372 1992 -1993 4,359,857 31,209,589 12;770,215:-..3,636,092 ': 8,520,758 12,220,226 $ 1,155,407 (3) 73,881,144 • 1993 -1994 4,607,009 32,330,338 15,018,898 3,406,717 5,910,752 13,605,703 1,175,175 76,054,587 1994 -1995 5,505,610 33,389,922 14,382,640 • 3,336,672 6,136,662 8,523,773 1,550,294 72,825,573 (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) Historical data for Debt Service expenditures is unavailable prior to fiscal year 1992-93 - Source: City Finance Department 100 • $so $70 • $60 M $50 e $40 • $30 • $20 $10 • $0 • • • • • • • • • • • • • Governmental Revenues and Expenditures (Last Ten Fiscal Years) 12% go 20% 101 ° w General Government ■ Public Safety ■ Public Works ■ Community Development ■Culture and Recreation ■Capital Expenditures ■ Debt Service Asssessed and Estimated Actual Value of Taxable Property (Last Ten Fiscal Years) Total Fiscal Secured Public Unsecured Assessed & Estimated Year Valuation Utility Valuation Valuation • 1985.1986 $ 6,600,799,830 $ 72,892,420 $ 691,688,711 $ 7,365,380,961 • 1986 -1987 7,090,960,057 78,565,100 649,193,026 7,818,718,183 • 1987.1988 7,710,141,525 80,391,430 ... 839;685,023 8,630,217,978 95.75% 1988 -1989 8,357,952,682 575,220 (1) 688,645,933. 9,047,173,835 • 1989 -1990 8,992,749,635 575,220 (1) 711,046,663 9,764,371,518 99.14% 1990 -1991 10,013,611,946 575,220 (1) 894,916,739 '. 10,909,-103,905 • 1991 - 1992 10,385,400,896 354,820 (1) 990,044;079 11,375;799,795 18,119;326 95.560 392;912 18,512;238 97.63% ..- • 1992 -1993 10,876,014,710 354;820 (1) 8661157,889 11,742,517,419 20,296,669 1993-1994 10,991,614,135 `. 354,820 (1) 704,736;499 11,696,705,454' • 1994 1995 10,929,761;077 354,820 (1) 640,914,473 11,571;090,370 1992 -1993 18,859,889 (1) (1) Effective FY 1988 -89, public utility values have decreased due to AB2890 and AB454 transferring • Y the public utility values.to a county -wide tax rate area. • 1993 -1994 17,870,028 (2) 17,131,159 95:87% 526,025 17,657,184 98.81% 1994 -1995 17,730,237 (2) 17,105,142 (3) 96.47% 409,355 (3) 17,514,497 Secured Property Tax•Levies and Collections (1) Effective 1992 -1993, Orange • (Last Ten Fiscal Years) . (2) Effective 1993 -1994, Orange County again reduced Secured Property Tax Levy as a result Total Total Percent Delinquent (3) Funds were withheld due to % of Total Tax County Bankruptcy. Fiscal:: Current Curreni•: % of I evy Tax Total Collections • T a.l: !`Alo,i.. • Tnrnl T:AW. 96.73% • 1985-1986,, 12,978,040 1 12,189,094' 93:92% 364,658 $ 12,553,752 1986 -1987 14,395,151 '15,942,564 13,783,508 95.75% 465,780 14,249,288: 98.99% • 1987 -1988 15,311,519 96.046% 493,507_,.. 15,805,026' 99.14% 1988.1989 .17,308,591 .16;678,689'- 96.36% 432,523 17,111,212 98.86% • 1989 -1990 18 ;962,055 18,119;326 95.560 392;912 18,512;238 97.63% ..- 1990 -1991 21,031,117 .19,863,098. 94.45% 433,571 20,296,669 96.51% • 1991 -1992 21,516,647 21,255;177 98.78% 504,000 21,759,177. 101.13% 1992 -1993 18,859,889 (1) 18,508,590; 98:14% 536,760 19,396,649 102.85% • 1993 -1994 17,870,028 (2) 17,131,159 95:87% 526,025 17,657,184 98.81% 1994 -1995 17,730,237 (2) 17,105,142 (3) 96.47% 409,355 (3) 17,514,497 98.78% • (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. • (3) Funds were withheld due to the Orange County Bankruptcy. Source: County of Orange Auditor - Controller's Office • 102 • $0 • 1985,86 1986.87 1987 -88 1988.89 198990 1990.91. 1991 -92 1992 -93 1993-94 1994 -95 • Total Property Tax Collections / Delinquencies Total Assessed Valuation / Property Tax Collections (I Vt Ten Bi+cal Years) • sn.0o0. • •$12,000 $20,000. •$10,000 8 • $15,000 • L rj $10,000 v $8,000 0 • $5,000 E • o $6000 v • " $4,00D K F $2,000 • $0 • 1985,86 1986.87 1987 -88 1988.89 198990 1990.91. 1991 -92 1992 -93 1993-94 1994 -95 • Total Property Tax Collections / Delinquencies Total Assessed Valuation / Property Tax Collections (I Vt Ten Bi+cal Years) • sn.0o0. • $20,000. 8 • $15,000 S rj $10,000 v F • $5,000 • $0 • 19B5-B6 198687 1987 -88 198889 1989.90 199091 1991 -92 1992.93 1993-94 1994-95 103 o`w Q `o c 2 b 0 3 FT C t�. b E x 2 c� FU Source: The Findley Reports on California Financial Insitutions • 104 • Construction Activity • (Last Ten Fiscal Years) • Fiscal Building Permits Percentage Estimated Percentage Year Issued Change Valuation Change • 1985 -1986 8,263 1,17.21% $ 178,846,581 -4.03% 1986 -1987 91859 19.32% 180,434,990 0.89% • 1987-1988 9,337 -5.20% 120,512114 - 33.21% 194,655,287 61.52% • 1988 -1989 9,228 -1.17% 1989 -1990 8,800 -4.64% 118,087,775 '. - 39.33 %* • 1990 -1991 7,600 13:64% 110,500,000 -6.43% 1991 -1992 7;268 -4.37% 77,413,996 -29-94% • 1992 -1993 7,251... -0.23% 72,170,274 - 6.77.% 1993-1094 61986 -3.66% 70,339,522. ? -2.54% . 1994-1995 7,672 9.82% 79,691,510 13.30% Spurce City Building and Planning Department. • . • Bank Deposits (1.astTen Fiscal Years) • (thousands) Calendar Year Bank Deposits • 1985 $ 3;480,426 1986 4,702,801 • 1987 6,011,254 1988 6,529,897 - • 1989 6,631,514. 1990 6,971,424 • 1991 4,3.31,692 • :1992 4,359,067' 1993 4,582,022 • 1994 4,193,643 1995 data for bank deposits will not be available until 12 -31 -95 • Source: The Findley Reports on California Financial Insitutions • 104 • Estimated Value of Construction / Number of Building Permits Vnj..... .. .. . . ....... ... ... .... ...... � rims Caro S1211 • S80 11w Vo I'M 3,)S5-M F)86-81 .W7-N8 N2-93 jqf)3-,), 1�)94,)5 Bank Deposits • 111111 Im ...... Property Tax Rates -- Direct and Overlapping Governments (Per $100 of Assessed Value) (Last Ten Fiscal Years) Fiscal School Year Districts Im County County Flood County, City Metro Water provement .,Control,., & School Levy District Total 1985 -1986 $ 0.01434 $ 0.00030 $ .. 0.00163 $ 1986 -1987 0.01186 0.00027 0.00142 1:00000 - $ 0.01640 $ 1.03267 1.00000 1987 -1988 0.00916 0.00022 0.00117 1.00000 " 1988 -1989 0.00852 0.00022 0.00111 1.00000 1989.1990 0.00826 OA0017 0. .00093 1:00000 1990;1991: 0.00252 0.00016 0.00082 1.00000 1991.1992 0.00231 0.00012 0.00063 1.00000 1992 71993 .. 0.00239.> 0.00013 0.00065 1.00000.. 1993 -1994 o66666 +.' 0.00011 0.00067 1.00000 1994-1995 0.00000 ` 0.00013 .. 0.00037 1.00000 Source:, County of Orange Auditor - Controller's Office 0.01480 1.02835 0.011-2Q'* 1.02175 0.01100 1.02085 0.01210 0.00970 0.00744 0.01171 0.00326 . 0.00881 1.02146 1:01320 1.01050 1.01488 1.00404 1.00931 (1) The fiscal year 1995 debt limit is based on assessed value being equivalent to 100% of market value. Source: City Finance Department 106 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • CITY OF NEWPORT BEACH Principal Taxpayers June 30, 1995 Property Tax (listed alphabetically) Aetna Life Insurance Company Life Insurance $ 43,307,829 0.39% Downey Savings & Loan Financial $ 42,548,100 038% HIv1H Properties, Inc. Real Estate $ 66,200,104 0.59% Hughes Aircraft Company Aerospace $ 83,370,286 0.750/6 Irvine Company. Real Estate $ 830,294,108 7.430%% ::. Irvine Apartment Communities Real.Estate $ 158,023,084 1.4146 Koll :Center . Office.Buildings $.. 139,595,686 1.25% PaineWebber Income Properties Real Estate $ .: 34,914,492 Park Newport Land, Ltd. Real Estate $ 32,728,695 0.29% Rockwell International Corporation Aerospace $ 186,060,850 1.66% Source: California Municipal Statistics, Inc. 107 Schedule of Direct and Overlapping Bonded Debt June 30, 1995 • • 1994.95 Assessed Valuation: $11,668,735,784 (after deducting $196,166,355 redevelopment incremental valuation) • DIRECT AND OVERLAPPING BONDED DEBT:: % Applicable Debt 6/30/94 Orange County _ x.:7.367 % $43,465 • Orange County General Fund Obligations 7367 41,931,049 - Orange County Pension Obligations - _ 7.367 - 23,577,347 . Orange County Teeter Plan Obligations 7.367 11,418,850 Orange_ County Transit District Authority - - - 7.367. 1,554,437 _ Orange - County Flood Control District - 7.374 80,745 • Orange County Sanitation Districts #5,6 & -7 Certificates of Participation 6.501- 95.100 29,174,665 Orange County Water District: Certificates of Participation . 1.378 '. 2,864,449 • Metropolitan Water District _ - 1.444 9,052,508:'', Municipal Water District of- Orange County Water Facilities Corporation 0.047 41,423 - ` Coasr :Community College District Certificates of Participation _ 25.930 3,602,549 • Saddleback Community College �District Certificates of Participation 0.933 . 253,216 . Rancho Santiago Community College District Certificates of Participation 3.903 38,054 • Ne yport Mesa Unified Sckiool.District Community Facilities District #90-1 35.070 1,9091562 Sanxa Ana Unified.Syhool District and. Cenifieates:of.Participation 8.889 .1,920,024 Irvine Unified School District.- 0.004 412 • Irvine Ranc Water: District Certificates of Participation. and Improvement h Districts' 0.020- 14.648 3,768,909 ' • Ctyof Newport Beach Certificates of Participation 100. 7,235,000 City of Newport Beach 1915 Act Bonds 100. 2,280,132 • :i • TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $140,746,796 -- Less: Orange County Transit District Authority (80% self- supporting) 1,243,550 • Orange County Water District Certificates of Paticipation (100% self-'supporting) 2,864;449 "Municipal Water District of Orange County Water Facilities - -' • - -- •.Corporation (100% self-supporting) _ _ _ '41,423 TOTAL NET DIRECT AND,OVERLAPPING BONDED DEBT. $136,597,374 . (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue tax allocation bonds and iion- bonded capital lease obligations. • Ratios to Assessed Valuation: • Direct Debt 0.06% Total Gross Debt 1.21% Total Net Debt 1.17 %' • STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/95: $0 • Source: California Municipal Statistics, Inc. 108 • • 109 110