Loading...
HomeMy WebLinkAboutFiscal Year 1995-96 Financial StatementMcity of newport beach ■ ■ a c a I i f o r n i a ■ S ■ "1 1 J F• f � . ■ ■ Mr .tea. 0 comprehensive annual financial report ■ year ended june 30, 1996 ■ ■ ■ ■ i • ■ • ■ ■ ■ ■ ■ i ■ J R Comprehensive Annual Financial Report For the Year Ended June 30, 1996 Prepared by the Administrative Services Department Dennis C. Danner, Director ■ ■ s Introductory Section s s s ■ i • ■ • s ■ • ■ ■ s ■ i s ■ s ■ • ■ ■ ■ ■ ■ ■ s S CITY OF NEWPORT BEACH Comprehensive Annual Financial Report Year Ended June 30, 1996 . TABLE OF CONTENTS INTRODUCTORY SECTION ..,., (Unaudited) Tableof Contents. ...... ............ ............................ ............................... ......'...................................... i Letterof Transmittal ...............::............::.......................................................... ..............................m GFOA Certificate of Achievement for Excellence in Financial Reporting ... ........::..................... xvii CSMFO Certificate of Award for Outstanding Financial Reporting ................. ..........................xviii . List of City Officials ...... .............................................................................................................. xix Organization Chart ........................... .::.....:............................................ ................... .........:..........xx FINANCIAL SECTION Independent Auditors' Report.... .................... ..................................... 1 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups ............... ................::......:.:.4.. Combined Statement of Revenues, Expenditures and Changes in Fund Balances; - All Governmental Fund Types ............................. ...........................:..6 Combined Statement of Revenues, Expenditures and Changes ' in..Fund Balances ., Budget and:Actual - All Governmental Fund Types . ......... .......8 ' Combined Statement of :Revenues, Expenses and Changes in Retained Earnings • All Proprietary Fund Types .... ......... .... ............................:12 Combined Statement of Cash Flows.- All Proprietary Fund Types ....... .................1'4 Notes to General Purpose financial Statements........ ... ............................:17 Supplementary Information . General Fund: ; Comparative Balance Sheets ....::... ............... ...................... ..........._ . ...........41 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ....... ... ............................ ........ ......... ........42 Special Revenue Funds: Combining Balance Sheet:, :::.. ...................:........... :. 44 Combining Statement of Revenues Expenditures and Changes in Fund Balances ..............46 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: • State Gas Tax Fund ..................................................................... .............................48 • Asset Forfeiture Fund .................................................................. .............................49 • Tide and Submerged Land Fund ................................................. .............................50 • Contributions Fund., ........................ .......... .................................. .................... .... .51 0 • Circulation and Transportation Fund ......................... ............................... • Building Excise Tax Fund .......................................... ............................... • Combined Transportation Fund ................................. ............................... • Community Development Block Grant Fund- .... .... - ................................ • Ackerman Donation Fund ........................................... ............................... • Air Quality Management District Fund ....................... ............................... • Environmental Liability Fund ...................................... ............................... Capital Projects Funds: ..........52 ......53 ..........55 .......,..56 ..........57 ..........58 Combining Balance Sheet;.: .....:::................ ...:.i.:. 60 Combining Statement of 'Revenues, Expenditures and Changes in Fund Balances .................62 Statement of Revenues; Expenditures and Changes in Fund Balance Budget and Actual: • Capital Improvement Fund ..................... .........- ........ ..:::. .::..............64 • Assessment` District Fund -.................. ...:... ......... ........:..._ ...... :. .................65 • CIOSA Construction... ........................ ......... ._ ...:.........66 Bank Deposits, Last Ten Fiscal Years ....................................................... ............................... Property Tax Rates, Direct and Overlapping Governments, Last Ten Fiscal Years ................. Computation of Legal Debt Margin .............................................................. ............................... Principal Property Taxpayers as of June 30, 1996 .................................... ............................... Schedule of Direct and Overlapping Bonded Debt ..................................... ............................... Revenue Bond Coverage, Last Ten Fiscal Years. ..................................................... .89 .90 .90 .92 .92 .94 .94 .96 .96 .97 .98 .99 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ v CITY OF NEWPORT BEACH P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915 November 8, 1996 Honorable Mayor and Members of the . City Council City of Newport Beach Newport Beach, California The Comprehensive Annual Financial Report of the City of. Newport Beach for the year ■ ended June 30, 1996 is hereby submitted, as mandated by both local ordinances and state statutes. These ordinances and statutes require wpo .that the,City of Nei#,Beach issue annually a report on its financial position and activity,. and that this lrepbrt be . audited by an independent firm of certified public accountants Responsibility Or. 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 arid; . component units of the City. of Newport Beach. All disclosures necessary to enabliY; 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 rs 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' rep_., the general purpose financial statements, notes "to the;f[naneial statements, :and "the combining ani individual fund and accoun4 group financial'statemenis and schedules. The Sta :,, cal . Section, which is unaudited, contains selected financials` 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 $imply 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 penefitipast, 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. r a • 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 OFiREPORTING ENTITY The City. of Newport Beach was incorporated September 1, 1906. The current City_,.: Charter was adopted .in 1954. 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 he- Newport Beach Public Facilities Corporation, which is a . component unit of the City. 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, 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 unit's balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's or the component unit provides services almost entirely to the City. iv ■ r Blended Component Unit. The financial statements of the City of Newport Beach r 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. r Organizations Other than Reporting Entity. The following entities provide services within the City but are not component units: State of California; County3of:O.range and various school and other special districts. These entities do not_meet the above r criteria of a component unit and their financial information is not "included :in this report. r . LOCAL ECONOMIC CONDITION AND OUTLOOK Although the City's. long -term tax base., is broad and diverse, there' are signs icarlt; r short-term fluctuations in all City revenues, including taxes. The primary revenge;. sources include property taxes and sales taxes. There are ,a number of malar hotels: located within the City. which produce:a transient occupancy tax. In addition' fhe Cityi; . owns various properties. which generate revenue, and investment of temporary cash,, reserves provides limited" interest: earnings. Other, smaller sources of revenue are, r numerous and highly varied. Though some recovery is evident; economic. activity in the City and the region: continues to be: slower than if was fve.to ten years ago The long -term outlook rs favorable, but the current climate. remains weak: ' Comrriereiaf and residentt2l development within the City continues to generate new revenues, but at a reduced r rate. This also results in additional costs to the City as .it continues to prosride the highest quality services to its residents and commercial establishments Because of r the City's outstanding beaches and harbor, Newport Beach attracts as misny 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; r ine public r services. ■ Overall, property values in Newport Beach have declined ove01:e 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 r 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 rhave also been made in other areas. ■ v ■ 0 The City's fiscal posture is still being affected by several one -time events which actually occurred in prior years. Monetary settlements arising from litigation, 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 investment losses resulting from the bankruptcy of r Orange County. Even though there may be some additional subsequent recovery, the City chose to write off remaining investment claims. If and when additional sums are . received, they will therefore constitute new revenue. The City's overall financial condition remains quite strong, and we believe the aggressive response to these developments will serve.us well. Newport Beach considers it essential to maintain a healthy long -run financial . condition. Policy changes which affect both expenditures and revenue sources have been instituted, and more such actions are likely. In that regard, the City has negotiated reductions, especially in the area of fringe benefits, as part of the meet and confer process with . several of its employee :groups. ' (As of June 30, 1996, all negotiations were not complete.) During this fiscal :. year; the City continued construction of the Groundwater Development Project.. This project consists of new wells being drilled at inland sites: ■ in another city with :4he water then being piped to Newport . Beach. Actual spending for:, the project during.-this fiscal year was $11,254,278. The total cost of the project is;` projected to be $23,697,748 of which $16.1 million was financed by Revenue Bonds ■ issued in 1994. . The City's overall Capital. Projects program was particularly ambitious this year, with total spending :of $37,596,169 actually taking place 'during the year. Based only ,on limited research of readily available` records, that appears to be the largest annual expenditure on capital projects (including funds from,all sources) in the City's histgry. In addition to the Groundwater Project, other major, projects either continuing,.,. or `MacArthur. Street getting underway were Boulevard widening, Birch Bridge Widening, Big Canyon Reservoir Disinfection Modification, El''Paseo` Storm Drain Project; and a large number of smaller drainage, street and park facility, harbor.and tidelands, and ■ other projects. During the 1995 -96 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. A;detailed Cost of Services Study was completed, and it is anticipated" that at least some fees will be adjusted as a result of the study's information. Special operating budget reductions were again . identified and subsequently implemented by each department. After several years of decreases, the work force was held virtually constant. Several City work -force functions previously performed by full -time employees are now being accomplished by part-time employees, or have been contracted out. Vi ■ 0 The number of major fiscal variables which still contain a significant degree of volatility remains high, but not as high as it has been in recent years. 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. MAJOR INITIATIVES For the Year. This fiscal year was largely one of consolidatiom and implementation of r extensive changes initiated during "the - recent past. The past . few years,; have clearly represented a transitionary period in the City's history. The previous ?fouryears were ■ characterized by a reduction of the workforce, strearhlinirig of ,the City's basic organizational structure, increased automation, and an increasingly ambitious .;capital projects program. None of these were short-term endeavors,,,and all were very., ,much . still in the forefront during this fiscal year. In addition, an ambitious Cost of Services and Perform ance'Measurement Study was completed for the City by KPMG Peat Marwick, LLP.: As planned "this will ultimately, result in improved. budgeting procedures and more accurate cost allocation.:Among`; other things, this study prompted a review of a large number of the City's fees and: charges for services. Staff work on this. review was nearing completion of year end,. - with prospective.City Council action .being scheduled for the coming year. ■ .The City contmued;.with installation of.video cameras in policoNehicles: This has had': ■ a very favorable impact on several" aspects of "law enforcement bothfrom, a criminal; prosecution standpointand a "civil liability standpoint. For the Future. In addition >td following through on"the items mentioned above, the City will continue to expand the application :of the Geographic" <fnformation System tis well as other related automation programs. Evaluation of a "l`cJocument imaging program is scheduled to begin shortlyafter the" beginning of the new fiscal year; "at�d a comprehensive Police Strategic Information Systems projectwill result in additional ■ effectiveness of the City's law enforcement resources.. " As a cost saving measure, the.. City plans to form al.Jbint Powers i Authority with neighboring communities for the pooled use of Police helicopters The City will also participate in the conversion to the 860 MHZ public safety radio system throughout ■ Orange County. This is a costly but critically important prolectahat "will take place over several years. The Capital Improvement Project program is expected to continue at close to its current ambitious pace. The potential annexation of downcoast and other adjacent . areas will continue to be examined. vii ■ 0 FINANCIAL CONTROLS AND PROCEDURES 0 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 of costs and benefits requires estimates and judgments by management. ■ 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. . :.S.ingle Audit As a.. recipient of Federal financial assistance, the City is required to ; undergo . an annual.. audit in conformity with the provisions of the Single Audit Ad of.,., .1984: and the U.S..Office of Management and Budget. Circular A -128, Audits of State" and Local,. Governments: As part of the City's Single Audit, tests are made to- determine the adequacy of the internal control structure, including that portion related to'federal financial assistance programs, as well as to determine that the City has complied with applicable.laws and regulations. The results of the City's Single Audit s for I the fiscal year ended June ..30; 1996, 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 Jyewport Beach maintains budget controls. The objective of these' controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. ■ Budget control is maintained at the 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 during fiscal year 1994 -95. 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. Internal contribution rates have been established in an effort to fully fund these liabilities. over the five year period. Disability and compensated absences, have now been added to programs managed through this fund. During the 1993-94 fiscal year, the City began to administer, plan, and budget for the acquisition, maintenance, and repair of major rolling stock (vehicles and equipment) through an Equipment` Internal Service 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., "It is important to note that the General" Fund fund balance increased substantially this year. An increase Was planned, in keeping with the City Council's policy of building toward :arid eventually ,mai.ntaining, a stabilization reserve; equal to:: 15% of.;annual General Fund appropriations. However, tax revenues (mostly sales tax)" were stronger, than -anticipated'. In addition, capital'. project expenditures, ?while showing a marked iricrease; were still below .budget. ' The :City must still add over $4i0 million to its stabilization resenre:;to reach the goal of 15 %o of annual General Fund. appropriations.,,.. GENERAL FUND . Ten YearTrend in Fund Balance . ' 30� `? 20 0 0 0 15 N 0 10 5 1987 1988 1989 ■ r — 1990 1991 1992 1993 1994 1995 1996 Fiscal Year Ending June 30 iX 0 0 Unfortunately, this sharp increase in fund balance cannot be regarded as the beginning of a trend of that magnitude. Part of the increase was due to one time ■ transfers and restatement adjustments from other funds of $1.6 million. Although the City has every intention of achieving the stabilization goal set by the City Council, it will be more of a struggle than this year's figures might seem to indicate. N 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, 1996, and the percentage of increases and decreases in relation to revenues during the previous fiscal year, as well as the ■ percentage increases and decreases for the five year period beginning with fiscal year 1990-91. . Fiscal Year 1995 -96 Governmental .Revenues ■ Percentage Cumulative Percent Change Change: Amount of From FY Since FY Revenue Source .:' 0� OOZ Total.' 1994 -95 1990 -91 s` ■ Taxes $42,854 51.82% 7.89% 6.01% Licenses, Fees, .& Permits $3,052 3.69% 38.85% 17.130% Intergovernmental. $8,316 10.06% - 22.31% - 25.26 % ■ Charges for Services $6,278 7.59% 22.86% 29.56% Fines .& Forfeitures $2;855 3.45 % - 9.57% - 8.22% " . Use of Money & Property $11;000 13 30% 13.68% 10.45% Miscellaneous $8,340 10.09% ' 443.32% 386.420/d Total.. $82,695 100.00% 15.07% 9.84 %, e For he first time in the last five years, the City showed greater net revenue, in actual dollars, than it received during fiscal year. 1990 -9.1. With an inflation adjustment, however, current revenue is still below the 1990 =91"" level. This situation 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. The revenue situation has not changed, and it..is not expected to change, sufficiently to support any significant.growth in City services. Realignments of functional priorities and other management: actions will continue to . result in changes to City programs, but a comprehensive net increase or decrease in services is not foreseen at this timer (It should be noted that the "Miscellaneous" category contains a number of non - reoccurring revenues, some of which are for major capital projects. Year to year volatility is therefore to be expected in this category.) More information concerning revenues over the past ten years is contained in the . Statistical Section of this publication X N 0 Although overall spending increased; somewhat from'the prior fiscal year, it can be . seen from the above table that City expenditures are still below the FY 1990 -91 level. 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. F-1 A Percentage Changes in Major Revenue Sources 40.00% 90.0 m zo.oa � b i'illiilil;Il yI Eis€ m L U 10.00% m W c 0. 00% ' m m -10.00 a €i :o o;pi ?'•'� € �� ' "'iEiiii €� EIEE.:..... a .. ....:.............. ...�...' .1i:illee -20- 00% . .. :.:.::.:::... alil' iiil` "`i<iiiii � illl „�tdh� :aa ili ao.00sc W N W d y t , p o it p da` . Revenue source Expenditures The following” schedule (expressed in 'thousands) presents summary of general governmental expenditures for the fiscal year ended. June 2 1996.and the d?.I*:value of the increase or decrease during the past five years." Ftscal,Year 1995- 96,0 overn mental Expenditures . Current Percent Change Change; Amount of Since FY Since FY Expenditures`' OS 00� 'Total,: 1:994 -95 1990 -99 General Government $5;443 7.16% ($62) ($1;858) Public Safety $34,571 " 45:48 ° /a $1,181 $7;659 Public Works $14,780 19.441° $397;., ($2;467) Community Development, $2;952 3.88% ;($623) $2,769 Community Services $5,916 7.78% ., ($221) ,;($1,367) Capital Expenditures $11,292 14.85% $2 768 ' ($8,207) Debt Service $1;069',. 1(41% $( 243' $1,069 . Total Expenditures $76,023 100.00% $3,197 ($2,402) Although overall spending increased; somewhat from'the prior fiscal year, it can be . seen from the above table that City expenditures are still below the FY 1990 -91 level. 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. F-1 A 1. While overall spending went down after 1991, spending on Public Safety actually went up. Spending on Community Development went up as well, but to a much lesser degree. Certain expenditures which had been classified as General Government in 1991 -92 were reclassified as Community Development thereafter. Similarly, expenses from narcotic asset seizure funds had previously been classified as General Government, but they have since been reclassified as Public Safety. Therefore the magnitude of the relative changes in these expenditure categories is somewhat less than it would. appear from the raw numbers above. 2. The largest proportional reductions were in General Government and Capital Projects. The trend in Capital Projects has now changed. It should be noted that the Capital Projects spending depicted below . reflects general government expenditures only. It does not include certain special revenue funds. 3. 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 figues. 1991 -92 was relatively "light" in liability expenditures. 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. It was not the City's intention to sustain: capital outlay expenditures at that reduced level, so the increased activity currently being experienced was to be expected. (The above chart reflects actual dollars, with no adjustment for inflation.) xii ■ 0 0 Enterprise Operations. The City had three enterprise operations at June 30, 1996: . Water, Wastewater, and Cannery Village Parking. An analysis of the City Enterprise Fund operations indicates the following results for fiscal year 1995 -96: • The Water enterprise activity reported a net income of $1,494,349. Actual operations produced a net surplus of $420,882. ■ The Wastewater enterprise activity reported a net income of $303,098. The ■ Wastewater Fund finished up the year with retained earnings of $3,005,780. The Cannery Village Parking enterprise operation reported net income of $71,562 . for the fiscal year ended June 30, 1996, 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 immediatelyr. Deferred Compensation Plan for Full -Time Employees. In addition to the City's Deferred Compensation' Plan for part-time employees, the City offers a Deferred Compensation Plan for full -time employees. This plan is designed to supplement the employee's PERS Retirement Plan. The City's Deferred Compensation Plan forfull- time employees is authorized under Internal Revenue Code Section 457, and„ it is subject to all the limitations and restrictions of that code section. All full -time . employees are eligible to participate in this plan on a voluntary basis. . Cash Management. It is the City's policy to invest all temporarily idleshort term funds and longer term reserves in a manner that will maximize return.without sacrificing security or jeopardizing liquidity requirements. Idle funds are. invested in accordance . with the Government Code and a formal investment., policy approved by the City Council. The policy, 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. 0 xiii E 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. ■ During this fiscal year, the City, had none of its funds with Orange County for investment with the Orange County, Investment 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 14 to the this Report. General Purpose Financial Statementsn the Financial Section of ;. The City's current investment strategy is to normally place most of the funds with four private sector investment management firms. Each of;these intermedianes.is constrained to an investment program at least as restrictive as the policy goverrnng the `City's direct investments, Additionally, with regard. to the private sector firms, a1J a 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;090000; notes ;;payable; of $2,918733 .:and capital' leases of`: 'AA" $81,394. Standard and Poor's Co[pgration assigned a rating to the certificates of, participation Risk Management. The City maintains 6'. risk management, program which.,, as a combination of self- insured retention, excess insurance coverage, and written policies. As part of this program resources are now.being.sef,aside in the In Reserve Fund (as opposed to the General Fund) to meet current and potential.;losses. On July 1, 1994, the City purchased excess: liability insurance cov;.T,:] of $10 . million, with a self- insured retention.(SIR) of.,$1.. million per? occurrence..:On July 1, 1996, this coverage was increased to $20 million ...per occurrence with .a $1 million SIR. On September 1, 1995, the City purchased excess, workers compensation and employers liability insurance coverage of $300,000 per occurrence,:up to $1,000,000. This coverage provides for work related accidents and diseases: Further policy and . administrative adjustments in the area. of Risk Management are anticipated. General Fund Balance. The fund balance of the General Fund increased by $2.75 . million during the fiscal year ended June 30, 1996, before the transfer of this balance to the Contingency Reserve as required by City policy. This increase was due largely ■ to the factors described in the section above on Financial Information. 0 AV N 0 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 ■ auditors' 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, 1995. 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 must publish ■ an easily readable and efficiently organized comprehensive annual financial report, whose contents satisfy. both. generally accepted accounting principles and 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'aestate organization which sponsors extensive training and emphasizes high standards in alf aspects of municipal finance operations, including financial reporting.. As a result -of last year's report, the City of Newport Beach is fortunate to have remained among the ranks of California cities which have met the rigorous standards of financial .reporting required . of recipients of the CSMFO Outstanding Financial Reporting Award. We will be submitting the report to CSMFO for consideration again this year as well. COVER AND DIVIDER PAGES The divider pages of this report contain examples of some of the boats and other watercraft in Newport Harbor. xv 0 0 m 0 Xv ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Certificate of City of Newport :Beach, . (- :alfnrnia 4;wtte w, 177U A Certificate of Achieve rient.for :Excellence in R Reporting is presented by the 'Government Finance Association 1. at the. id`States and Canada' government. units and public` rnployee rearem systes whose comprehensive annual finarici m reports (CAFRs) achievelhe highest standards in government accounting and financial reporting:; xvii preside Executive Director ■ ■ ■ ■ ■ California Society of ■ Municipaf Finance Officers ■ Certificate of Award ■ j Outstanding Financial Reporting 1994 -95 Presented to City of Newport This ccrtylove is tumid in recognhldn of meeting pmfesdional standards and criteria In reponing,whkh reflect a high kwl of quality ■ In the annualpnandal statements and Ln,ihe underlying a"ounfing system from which the reports were prepared. February 26j 19W, ■ a.&�,i� ■ Char, ProjeWj Oaef d rtthatcWStandaeds canwcam� - - Prea eat ■ X Dedicated to Excellence in Municlpal Financial Management X ■ ■ ■ ■ xviii ■ ■ NEWPORT BEACH CITY OFFICIALS ■ City Council ■ John W. Hedges ■ Mayor Norma J. Glover Jan Debay Thomas C. Edwards ■ Council Member Mayor Pro Tem Council Member ■ %M a Jean Watt Dennis D. O'Neil John C. Cox, Jr. ■ Council Member Council Member Council Member . Principal Administrative Officers Kevin J. Murphy ■���'' � ° "�` - LaVonne M. Harkless City Manager Robert H. Burnham City Clerk City Attorney ■ Sharon Wood ........... Assistant City Manager /Director of Community & Economic Development ■ Peggy Ducey .................................................. ............................... Assistant to the City Manager Dennis C. Danner ...... ............................... .................Administrative Services Director/Treasurer . Bob MCDonell ......................................................................... ............................... Chief of Police Tim Riley ........................................................................ ............................... Fire & Marine Chief David E. Niederhaus ............................................ ............................... General Services Director LaDonna Kienitz ....................... ............................... Community Services Director /City Librarian Don Webb ............................................ ............................... Public Works Director /City Engineer . xix C1*vTL SERVICE BOARD r BUiLDINC, CODF, BOARD OP APPEALS H PLANNING COMMISSION II II II I I III ELECrO ATE III MAYOR COUNCIL CrrY CLERIC T CrFY ATTORNEY ASSISTANT POLICE I I Suppm15ervicea N v.d I I rmlre percTtl�e. Paking/Armval Gmvol I I I� II I PLANNING & BUILDING L_ Gvrcnt Plaro 8 Nojuo Plan thedrlvg Advance PI' ^^ t P.iu Gde FiJon:cmcm Inapccfi. I I I I PUBLIC WORKS Prrye�!��mem Iita(6c I I I I L---- - - - - -- INE ELECTED warm WaNemtr D «uical al A Gar CITY MANAGER P-B.&R. COMMISSfON� ARTS COMMISSION 1--I J � I II LIBRARY BOARD II II I� I ( II FIRE: & MARINE Admtri d.. cxan ❑Ic�>7rda OBIRaYOM 'fhl JanEs �iMm6b29 Pmventon Balhoa Va< r imam I I PacHa�vrdn Paddrrg luu M.aGticriale�a C buciN'ormaoan Syatcm COMMUNITY SERVICES AdmiN vauvn J I ..y �Inve ❑Mary Scrv�ax R«,radon I Savors Prvgmms GENERAL SERVICES Na and Tr «a —J .m.'. P ld 81 ?gcipmcm — Mainrctiance ?nffi<Signn iF Marlir�yi a Ncfirs< /gcryding ADMINISTRATIVE SERVICES P<nuvncl ddmwsva ria� Ncxrae. Benefi[Afevagement Psuchas'vig Pock Mareggrr���� Dam Y.vccasing faLnr RCmnon.v Tc{cronanamicatlorm Acmunlurg C buciN'ormaoan Syatcm COUNC IL APPOINTED COUNCIL DEPARTMENTS BOARDS & COMMISSIONS APPOINTED 04 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Financial Section [Id] ` IT F1 i ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ KPMG; Peat Marwick LLP ■ 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, 1996, 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 Goverment 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 the amountsand disclosures in the general purpose financial statements. An audit also. includes' assessing the accounting. principles used and significant estimates made by management, as well as:. ■ evaluating the overall financial statement presentation. We believe that our audit provides_a reasonable' basis for our opinion,' ■ In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the finannatposition of.the City of Newport Beach, California as of June 30, 1996 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. In accordance with.Government Auditing Standards, we have also issued a report dated October 25, 1996 on. ■ our consideration of the City of Newport Beach's internal control structure and a report dated 'October 25, 1996 on its compliance with laws and regulations.'. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements ■ takenas 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 thb.: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'opiniomon it. pin Mmot�lk ■ October 25,1996 ■ 1 ■ M?mce Fi1T al " .. K °M61[IemaioN.l E ■ ■ General Purpose ■ Financial Statements ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ t 0 0 0 0 ■ 0 3 CITY OF NEWPORT BEACH Combined Balance Sheet - All Fund Types and Account Groups . June 30. 1996 Governmental Fund Types 4 0 Special Debt Capital Assets and Other Debits General Revenue Service Projects . Cash and investments (Note 2) $ 6,990,465 $ 14,716,045 $ $ 212,006 Accounts receivable and accrued revenues 1,918,501 551,928. . Lease Receivable 888,000 Due from other governments (Note 14) 2,397,767 3,796,449 Allowance for doubtful accounts (Note 14) (446,381) (343,417) . Due from other funds (Note 11) 4,556,282 Deposits with other agencies Inventories of materials and supplies, at cost 139,614 . Restricted assets- cash and investments (Note 2) 579,731 6,576,135 Other assets - - 119,009 77,231 Notes receivable 200,000 . Fixed assets "(Note 3) Amount available in debt service fund Amount:to`be provided.for payment . of general long -term debt. Total Ass and Other,Debits $ 15,875,257 $ 19,686,236 $ 579,731 $ 6,788,141 • Liabilities, Fund Equity and Other Credits Liabilities: . Accounts payable and accrued liabilities . $ 1,215,828 $ 667,533 $; 776,111 Accrued payroll 1,323,336 1,390 Rue to other funds (Note 11):. 371,120 2,227,346 Deferred revenue 468,362 3,982,206 ■ Due to bondholders (Note sj Due to others Deposits 1,637,057 .. 170,420 ■ Deferred compensation (Note 7) Current portion of debt (Note 4) Long -term debt (Note 4) . Total Liabilities 4,644,583 5,192,669 3,003,457 Fund Equity and Other Credits: ■ Investment in general fixed assets Contributed capital (Note 12) Retained earnings (accumulated deficit) . Fund balances (Note 13): Reserved - -- 2,468,741 2,423,814 $:579,731 3,613,926 Unreserved, designated 8,761,933 12,274,295 170,758 . Unreserved, undesignated {204,542) Total Fund Equity and Other Credits 11,230,674 14,493,567 579,731 3,784,684 Total Liabilities, Fund Equity and Other Credits $ 15,875,257 $ 19,686,236 $ 579,731 $ 6,788,141 See Accompanying Notes to General Purpose Financial Statements. 4 0 M 0 . Proprietary Fiduciary Fund Types Fund Type Account Groups General General Internal Fixed Long -Terre Totals (Memorandum Only) ■ Enterprise Service Agency Assets . Debt 1996 1995 $ 16,882,724 $ 979,063 $ 29,193,103 $, 68,973,406 $ 73,259,225 . 3,304,949 8,370 5,783,748 4,610,171 888,000 962,000 2,543,302 'S J37 518. 6,616,620 . (2,543,302) . (3 333 100) (3,582,175) 4,556,282' i;; 1,366,962 ^'631,284 ■ 44,110 146,348 330,072 386,605 1,733,358 756,141 9645,365 6805,358 196,240 '82;829 . 200,000,. '' 200,000 43,625,367 4;845,927 $ 74,009,174 122,480,468 109,186678; 579,731 579;731`' 561193`:: ■ 9,510,396 9,510,396 9,941 342.:; $ 65,590,508 $ 5,979,708... 29,949,244 $74,0 09" 174 $ 10,090,127 1228,548,11261 $ 211 038 092 ■ . $ 2,989,233 $ 840,963 $ 6,489,668 $ 4,332 923 ,,. 49,644 118,362 1,492,732 1,869,975,::5 ■ 585,961 1,270,165 $ 101,690 4,556,282 !:4,450,568, 1,366962 1,458 037 31347,130 3,3471:30 299297-;' 1,387 057 1 387,057 539177 t ■ 84,878 182355 2(()48,M 25,113,367 25,113,'W7 22,067,$90: 1,283,420 3,827,341 5110,761 8,982023 ■ 15,435,000 12,239,555 $ 10,090127 "37,764,682 41,220,926 20,428,136 18,296,386 29,949,244 10,090127 :' 91,604,602 84,185263 • $ 74,009,174 741609,1174 73 352,063 14,208,087 4,097,648 f8,303.73& 17,996,975 . 30,956,285 (16,414,326) 14,6411 959; 12,371,377 9 086 212 4,410,543 ■ 29,206,986 18,128,017 (204,542) 593,854 ■ 45,162,372 (12,316,678) 74,009,174 136,943,524 126,852,829 $ 65,590,508 $ 5,979,708 $ 29,949,244 $ 74,009,174 $ 10,090,127 $ 228,548,126 $ 211,038,092 ■ 0 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, 1996 Revenues: Taxes Licenses, fees and permits I ntergovem mental revenue Charges for services Fines, forfeitures and penalties Revenue from use of money and property Contributions Other .Total Revenues Expenditures: Current: General government.. . Public safety Public..works Community development. Community services . Capital Outlay Debt Service:' Principal (Note 4) ,Interesfand fiscal charges Total Expenditures Excess (Deficiency) of Revenues .Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Proceeds from long -term debt 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 Governmental Type Funds 33,978 5,699,231 (4,895,683) 580,430 ■ 2,746,427 1,907,312 18.538 . Fund Balances, July 1 8,484,247 12,586,255 561,193 Fund Balances, June 30 $ 11,230,674 $ 14,493,567 $ 579,731 See Accompanying Notes to General Purpose Financial Statements. . 6 . Special Debt General Revenue Service $ 42,853,480 1,663,469 $ 1,388,644 4,728,973 3,586,570 6,020,272' 258,144 2,795,045 60,018 5,792,454 5,015,936 $ 29,493 146,457 2,743,279 150,579 1,422 64,150,729 13,054,013 29,493 5,442,862 34,173,622 397,651 14,250,842 528,772 2,716,712 235,535 5,670,1.70 246,024 4,608,037 4,606,664 166,902 100,506 :145,000 74,386 135,866 446,385, . 67,103,533 6,251;018 5911385 (2,952;804) 6,802,995 (561,892) 61245,683. 580,430 (580,430) (4,895,683) - 33,978 5,699,231 (4,895,683) 580,430 ■ 2,746,427 1,907,312 18.538 . Fund Balances, July 1 8,484,247 12,586,255 561,193 Fund Balances, June 30 $ 11,230,674 $ 14,493,567 $ 579,731 See Accompanying Notes to General Purpose Financial Statements. . 6 . ■ Capital Projects $ 162,389 5,298,634 5,461,023 2,077,058 2,077,058 3,383,965 (1,100,000) (1,100,000) 2,283,965 Totals (Memorandum. Only) 1996 1995 $ 42,853,480 $ 39;719,830 3,052,113 2;198,186 8,315,543 10,704,000 6;278,416 5,109,513 2,855,063 3,156,530 11,000,272 9;676,426 8,188;370 940;020 152,001 360,702 82,695,258 71,865,207. 5;442;862 5;5051610. 34,571;273 33,389,922.: 14,779,614 14, 661, 34 3." ;.2,952,247 3,336;672 5;g161194. 6; 8 57; 959 : 11,291,759 8,523,773: .412 408 770,708 - 656,637 779,586 76,022,994' ", 72,82557.3 6,672,264 6,826,113 (6,576,113) 33,978 283;978: 6,956,242 (9601366) 6,171, 842 (7,183,M6) 5,3,865 (950,336) (1,910, 702) 1,500,719 23,132,414 25,043,116 $ 3,784,684 $ 30,088,656 . $ 23,132,414 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, 1996 Other Financing Sources (Uses) Operating transfers in 6,031,164 General Fund 214,519 Operating transfers out (600,455) ,; (580,430) Variance Proceeds from long -term debt Favorable Proceeds from sale of fixed assets Budget Actual (Unfavorable) Revenues: 5,456,209 ` 5,699,231 243,022 Taxes $ 41,048,230 $ 42,853',480 $ 1,805,250 Licenses, fees and permits 1,369,154 1,663,469 294,315 Intergovernmental revenue 4,878,657 4,728,973 (149,684) Charges for services 6,268,392 6,020,272 (248,120) Fines, forfeitures and penalties 2,945,000 2,795,045 (149,955) Revenue from use of money and property 5,612,775 5,792,454 179,679 Contributions 263,731 146,457 (117,274) Other 247,000 150,579 (96,421) Total Revenues 62,632,939 64,150,729 1,517,790 Expenditures: Current General government 5,336,622 5,442,862 (106,240) Publicsafety. .. 34,719,541 34,173,622 545,919 Public works . 14,464,834 14,250,842 213,992 Community: development 2,663,524 2,716,712 (53,188) Community services 5.762,566 5,670,170 92.396 Capital Outlay 6,655,991' 4,608,037 2,047,954 Debt Service:. Principal (Note 4) ...: . 166.902 166,902 Interest and fscal'charges . 11.678 74,386 (62,708) Total Expenditures 69,781,658, 67,103,533 2,678,125 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,1.48,719) ;: ,(2;952,804) 4,195,915 Other Financing Sources (Uses) Operating transfers in 6,031,164 6;245,683 214,519 Operating transfers out (600,455) ,; (580,430) 20,025 Proceeds from long -term debt Proceeds from sale of fixed assets 25.500 33,978 8,478 Total Other Financing Sources (Uses) 5,456,209 ` 5,699,231 243,022 Excess (Deficiency) of Revenues; and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (1,692;510) 2,746,427 4,438,937 Fund Balances, July 1 8,484,247 8,484,247 Fund Balances, June 30 $ 6,791,737 $ 11,230,674 $ 4,438,937 See Accompanying Notes to General Purpose Financial Statements. 0 ■ ■ ■ ■ ■ ■ ■ 0 0 . 9 Special Revenue Funds Debt Service Fund ■ Variance Variance Favorable Favorable Budget Actual i (Unfavorable) Budget Actual (Unfavorable) . $ 1,444,685 $ 1,388,644 $ (56,041) . 14,131,965 3,586,570 (10 :545,395) 256,175 258,144 1,969 . 134,360 4,571,900 60,018 5,015,936 (74.342) 444036, $ 28,493. $' 29493 (, 7,685,000 2,743,279 (4,941,721) . 1,OOD 1,422 422 28,225,085 13,054,013 (15;171:072) 29,493 ,:= 29,493 477,579 397;651 79,928 . 331,881 528,7.72 (196,891) 765,691 235,535 530,356 311,696 246,024 65,674 . . 15,441,664.. 4606,664 10,835,000: . 100,506 135,874 100;506 1135,866 $ 145 000 446,385 145;O00 446;3$5 $ 17,565,093 6,251,016 11,314,075 r 591,385 591385 10,659,992 6,802,995 `(3,856,997) . (591,385) {561892j` „' 29,493 • 580,430 580 430 (4,741,411) (4,895;683) (154,272), . . (4,741,411) (4,895,643) (154,272)... " "580,430 580;430 5,918,581 1,907,312 (4;011,,269) (591,385) 18,538 609,923 . 12,586,255 12,586,255 561,193 561,193 $ 18,504,836 $ 14,493,567 $ (4,011,269) $ (30,192) $ 579,731 $ 609,923 . (Continued) . 9 CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenditures and Changes in Fund Balances . Budget and Actual All Governmental Fund Types (Continued) For the Year Ended June 30, 1996 . Capital Projects Funds Variance ■ Favorable Budget Actual (Unfavorable) Revenues: . Taxes Licenses, fees and peirnits Intergovernmental revenue . Charges for services Fines, forfeitures and penalties Revenue from use of money and property $ 162,389 162,389 . Contributions 333,593 5,298,634 4,965,041 Other 5;127,430 5,461,023 Total Revenues 333,593 Expenditures: Current: ■ General government Public safety.. - Public works!. Community development Community services . Capital Outlay 7,885,217 2,077,058 5,608,159 . Debt Service'...; Principal (Note .4) Interest fiscal.charges.. . and Total Expenditures. 7,885,217 2,077,058 5,808,159 " ■ Excess (Deficiency) of Revenues Over (Under) Expenditures (7,551,624) _ 3.383,965 10,935,589 Other Financing Sources (Uses): . ;Operating transfers in Operating transfers out (1,10000) - ',(1,100,000) Proceeds from long -term debt . Proceeds, from sale of fixed assets Total Other Financing Sources (Uses) (1,100,000) (1,100,000) . Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures . and Other Financing Uses .. .. (8,651.624) 2,283,965 10,935,589 Fund Balances, July 1 1,500,719 1,500,719 . Fund Balances, June 30 (7,150,905) $ 3,784,684 10,935,589 See Accompanying Notes to General Purpose Financial Statements. . 10 0 ■ ■ ■ ■ ■ ■ Totals (Memorandum Only) Variance Favorable Budget Actual (Unfavorable), $ 41,048,230 $ 42,853,480 $ `1.805,250 2,813,839 3,052,113 238,274 19,010,622 8,315,543 (10,695;079) 6,524,567 6,278,416 (246,151) 3,079,360 2,855,063 (224,297) - 10,184,675 11,000,272 815,597 8,282,324 8,188,370 (93,954) 248,000 152,001 (95,999) 91,191,617 82,695,258 (8;496,359) 5,336,622 5,442,862. (106',240) .. 35,197,120 34,571,273 6251847 14,796,715 14,779,614 17,101 3,429,415 2,952,247 497,168 6,074,264 5,916,194 158,070. . 29,982,872 11,291,759 18,691,113. 412,408 412,408 593,937 656;637 (62700) ; 95,823,353 76,022,994 19,800,359':" (4,631,736) 6,672,264 11,304,000: ' 6,031,164 6,826,113 794,949 (6,441,866) (6,576,113) (134,247) 25,500 33,978 8,478 (385,202) 283,978 669,180 (5,016,938) 6,956,242 11;973,180 23,132,414 23,132,414 $ 18,115,476 $ 30,088,656 $ 11,973,180 11 CITY OF NEWPORT BEACH Combined Statement of Revenues, Expenses and Changes in Retained Earnings All Proprietary Fund Types For the Year Ended June 30, 1996 Internal Enterprise Service Operating Revenues: Charges for services $ 16,851,927 $. 7,220,715 Other 171,319 11,223 Total Operating Revenues 17,023,246 7,231,938 Operating Expenses: Purchase of water Salaries and wages Depreciation Professional services Maintenance and supplies Fleet parts.and supplies Systems maintenance Workers' compensation' Claims and judgments. Compensated absences Other. . Total Operating. Expenses. Operating Income Nonoperating. Revenues.(Expenses): Intergovernmental. revenue Interest income .,Other income Gain on sale of fixed assets Interest expense Bond issuance cost Irivestment losses Total Nonoperating Revenues (Expenses) Income (Loss) Before 8,141,732 7,255,987 2,592,691 935,387 1,850,626 1,008,235 1,310,999 55,282 790,876 150,525 16,355,441 404,069 1, 066, 507 7,255,987 3,528,078 2,473,017 2,858,861 456,599 1,066,507 1,337,344 602,010 3,748,998. 16,355,441 6,820,458 667;805 411,480 31,110 12,953 1.,440,412 34,956 164,854' (305,274) (371714) 1,201,204 140,093 Operating Transfers 1,869;009 551,573 O f t f pera ing rans ers Operating transfers in Operating transfers out Total Operating Transfers Net Income (Loss) Retained Earnings (Accumulated Deficit), July 1 (250,000) (250,000) 1,869,009 301,573 29,087,276 (16,715,899) Retained Earnings (Accumulated Deficit), June 30 $ 30,956,285 $ (16,414,326) See Accompanying Notes to General Purpose Financial Statements. 12 Totals (Memorandum Only) 1996 1995 $ 24,072,642 $ 21,424,827 182,542 2,911,241 24,255,184 24,336,068 8,141,732 7,255,987 3,528,078 3,870,815 2,858,861 2,863,327 1,366,281 997,816 941,401 927,804 404,069 ' . 419,766. 1,066,507 622,580: 2,473,017 3,748,998. 456,599 636,834 .. 1,337,344 1,854,378 -: 602,010 651,279 < 23,1.75,899 23,849,584 1,079,285 486,484, 44,063 109,707 .. 1,440,4.12 1,178,284 34,956 164,854 60,2401: 1 (342,988) (374,671) (396,230) (2,739,911) ■ 1,341,297 (2,162,581) . 2,420,582 (1,676,097) . 1,373,797 (250,000) (362,373) (250,000) 1,011,424 2,170,582 (664,673) 12, 371, 377 13, 036, 050 $ 14,541,959 $ 12,371,377 0 0 m 0 0 0 13 M CITY OF NEWPORT BEACH Combined Statement of Cash Flows . All Proprietary Fund Types For the Year Ended June 30, 1996 Internal ■ Enterprise Service Cash flows from operating activities: Operating income $ 667,805 $ 411,480 . Adjustments to reconcile operating income (loss) to net cash provided by operating activities: . Depreciation 1,850,626 1,008,235 . Intergovernmental revenue 31,110 12,953 Other revenue 34,956 Changes in operating assets and liabilities: . (Increase) decrease in accounts receivable .. (220,032) (Increase) decrease in due from other governments 196,609 Increase (decrease) in allowance for doubtful accounts (196,609) . (Increase) decrease in accrued revenue 41,564 (Increase) decrease in deposits with other agencies 631,284 (Increase) decrease in inventories of materials and supplies, at cost 7,706 . (Increase) decrease in other assets - - Increase(decrease)in accounts - payable.. 1,193,144 648,084 . ... Increase(decrease) in. accrued payroll Increase (decrease) in.dua to other funds (75,861) 1,256,836 . Increase (decrease)`JR deposits (12;965) Increase (decrease)in workers' compensation 330,362 Increase (decrease) in general liability (1,975,000) . Increase (decrease)in.compensated absences (71.994) Total adjustments 2,800,978 1,890;030 ■ Net cash provided by operating ,activities 3,468,783 2,301,510 Cash flows from noncapital financing activities: Operating transfers from otherfunds . Operating transfers,to otherfunds (250,000) Net cash provided by (used for) noneapital financing activities (250,000) Cash flows from capital and related financing.actrwties' ' ■ Acquisition of capital assets (12,505,445) (1,805,169) Principal payment (820,000) (291,728) Proceeds from sale of capital assets 245,846 . Proceeds from bond issuance Interest paid - - -- (898,878) (37,714) Net cash used for capital and related financing activities (14,224,323) (1,888,765) ■ Cash flaws from investing activities: Interest on investments - - - Loss on investments 1.,440,412 . Net cash provided by (used for) investing activities 1,440,412' Net increase (decrease) in cash and cash equivalents (9,315128) 162,745 . Cash and cash equivalents, July 1.. `27,931,210 816,318 Cash and cash equivalents, June 30 $ 18,616,082 $ 979,063 Noncash Activities: ■ Contributed capital (Note 12) $ 306,760 $ - Capitalized interest $ 571,566 $ - . Acquisition of equipment by capital leases $ - $ 387,592 See Accompanying Notes to General Purpose Financial Statements. . 14 ■ 0 m . Totals (Memorandum Only) 1996 1995 . $ 1,079,285 $ 486,484 ■ 2,858,861 2,863,327 44,063 34,956 109,707 • (220,032) (307,875) 196,609 (2,739,911) . (196,609) 2,739,911 41,564 (20,335) 631,284 . 7,706 23,238 81 . 1,841,228 402,820 ■ 119117 1,180,975 (160;422) (12,965) :(6;137) ..• 330,362 (21;429) (1,975,000) (3085,340) (71,994) 213;416 ■ 4,691,006 %.l 30;168 5,770,293 616;652. . 1;373;797 (250,000) (362;373) (250,000) 1,011,424 (14,310,614) (4,858,419)_ . (1,111,728) 245,846 (212 -,895) 60,240 - -- -- 16,703,770 (936,592) (374,671) (16,113,088) 11,318,025 ' 1,440,412 1,148,685 . (2;739,911) 1,440,412 (1,591,226)... ■ (9,152,363) 11,354;875 28,747,526 17,392,653 . $ 19,595,145 $ 28,747,528 $ 306,760 $ 60,580 . $ 571,566 $ 460,458 $ 387,592 $ 453,772 J ■ 15 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Addli0 Notes to Financial X00 Statementsdo X00 CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1996 • (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 ofthe City's accounting policies are described below. ■ Description of Reporting Entity ■ The City of Newport Beach was incorporated on September 1;1906 as;a charter city in the State of California. The City operates under a Council- Managecform 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 thetity's reporting entity, because of the significance of'its operational oF. . financial relationship:with the City:., This'entity is legally separate from the City., However,; the City of Newport Beach's elected officials have continuing full or partial accountabili, for fiscal matters of the component unit. The financial reporting entity consists bf: (1) . 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 t. caily 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' batanceS and transactions are reported in a rnanpersimilarto 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. . 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 ii*ration is governed . by a Board of birectorscomprised of seven individuals appointed by the City Council of the City of Newport Beach -The Corporation's fin anciai:data'and transactions are included in the debt service fund, capital projectsfunds and general long-term debt account group. . Separate financial statements are not prepared for the Corporation. ■ Basis of Presentation - Description of Funds and Accounting System The City uses funds and account groups to report its financial position and results of . operations. Governmental accounting systems are organized and operated on a fund 17 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 basis. Fund accounting is designed to demonstrate legal compliance and aid financial management by segregating transactions related to certain City functions or activities. A fund 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 in accordance ■ with special regulations, restrictions.or limitations. The combined financial statements in this report are grouped into three broad fund ■ categories containing seven generic fund types and into two account groups as follows Governmental Fund Types ■ General Fund - The General Fund is the general operating fund of the City.:;,The General Fund is used to account for all financial resources, except those required to . be accounted for in another fund. Special Revenue Funds -The Special Revenue Funds are used to account for the . proceeds of specific revenue sources or to finance specified activities as required, by . law or administrative regulation. Debt Service Fund -.The Debt Service Fund is used to account for the accumulation • of resources required fouthe payment of general long -term debt principal and], ■ interest .G'.anital Proiocte'.Fiinris.- Thm r.nnital Prniart Fiinrls are imprl to account for financial .` resources:us cl for the acquisition or construction of major capital facilities .other than : . those financed by proprietary funds. Proprietary Fund Types,: ' . Enterprise Funds - The Enterprise Funds are Used to account for operations that provide services to the general public which are.fnanced primarily by user charges or where the periodic measurement of net income is deemed appropriate. Internal Service Funds - The Internal Service`Funds are used to account for the claims and judgments, compensated absences and equipment maintenance cost of service provided by one department of the City to other departments on a cost- ■ reimbursement basis. Fiduciary Fund Type,::. . Agency Funds - The Agency Funds ate used to account for assets held by the City as an agent for individuals, private organizations or other governmental units and /or . otherfunds. 0 0 18 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30. 1996 ■ 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 ong -Term Debt Account Group is used to account for long -term, debt of the City, exeept.for indebtedness . related to the proprietary fund types. Measurement Focus . The accounting and financial reporting treatment applied to a fund is deterinined.;,by its measurement focus. All governmental funds are accounted,for using a currentAnancial resources measurement focus. With this measurement focus; .only expendable financial resources and current:liabiliiies:generally are included on the balance ; sheet> Operating statements of these funds present increases (i.e., revenues and other financing, sources) and decreases;;( i.e., expenditures. and other financing uses] in net financial, resources;. Recognition of governmental fund type.r.evenues represented by non - current receivables. . are deferred until they. become current. All proprietary;iunds are. accounted. for on a flow of economic resources measurement4. ■ focus. With this measurement focus;, all assets and all liabilities associated with thee. operation of these included': the balance sheet. 'Fund'; equity (Le nef` ,funds are. on economic resources). is segregated, into contributed capital and retained earnings; components Proprietary fund -type operating statements present? increases (e g revenues) and decrea in resources. ; so( e.g.; expenses) net economic Fiduciary fund types are accounted for according to the nature of the fund The City has only Agency type fundswhich are;purely custodial in?nafure (assets'equal liabilities) and, thus, do not involve measurement.of results of operations Basis of Accounting 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 'recogmzed when they become susceptible to accrual, that is, measurable., and available to fnanceexpendtures of the current period or soon thereafter to be used to pay liabilities W tte 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 arecorsidered 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 accrual because they are not measurable until received in cash. Grant funds earned but not received are recorded as receivables, and grants received before the related revenue recognition criteria have been met are reported as deferred revenues. Expenditures are 19 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 I N 20 • recorded when the related fund liability is incurred, except that principal and interest on general long -term debt are recognized when due. • The accrual method of accounting is followed by the City's proprietary fund types (Enterprise and Internal. Service Funds). Proprietary fund types are accounted for on an "income determination" or `'cost of service" measurement focus. Accordingly, all assets . and liabilities are included in their respective balance sheets, and the reported fund equity (total reported assets, less total reported liabilities) provides an indication of the economic net worth of the fund. Operating statements for proprietary fund types (on an income ■ determination measurement focus) report increases (revenues) and decreases (expenses) in determining total economic net worth. Under this determination, unbilled service receivables are recorded at year -end. Governmental entities have the option to apply ■ applicable standards of either the Financial Accounting Standards Board ( "FASB ") or the ;Governmental Accounting Standards Board ( "GASB ") issued on or after November 30, 1989 for proprietary fund types. The City has elected to apply the standards set forth by . GASB: Budgetary Control and Accounting . The City adheresto. the following . general procedures in establishing the budgetary data.: reflected m the financial statements: . • During April, the City Manager submits to the City Council a proposed operating,,': budget for. the fiscal year commencing the following July 1. The operating ■ budget includes proposed expenditures and the means of financing them.: . Public. hearings are conducted at City Council meetings to obtain taxpayer;. comments Prior to July .1 the budget is legally adopted through passage of an" ■ % appropriation resolution. Budgets are adopted on an annual basis iconsistent with generally accepted . accounting- principles for all governmental funds: • 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 accounts . within a fund. Transfers; of appropriations between funds or transfers other than those authorized above may be made only by the authority of the City Council. The legal level of budgetary control is the fund level. Total fund expenditures ■ May not exceed total fund budgeted amounts without approval from the City Council.` :. • • 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: ■ I N 20 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30, 1996 • Original Adjusted Budget Revisions Budget . General Fund $66,778,007 $3,003,651 $69,781,658 Special Revenue.Funds 27702,895 (10,137,802) 17,565,093 Debt Service Fund 591,385 591,385 ■ Capital Project Funds 4,255,258 3,629,959 7,885,217 • 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. Projeots.that are not started during the budget year are reevaluated m "the following year. • • Encumbrances represent commitments related to unperformed contracts for goods and -services.. The City utilizes an encumbrance system as a ■ management control technique to assist in controlling expenditures Under; #his system, encumbrance accounting for the expenditure of funds .is reco Mod ;in order to indicate outstanding commitments and is employed:in the.govemmental ■ 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 r "elated budgets are honored in the subsequent year tb . fulfill these commitments and are presented as revisions to the original adopted budget. ■ Cash and Cash Equivalents For purposes of..Statement of Cash Flows, cash and, cash equivalents are defined to be, . cash on hand' deposits :and highly liquid investments with a maturity of three; months orJess.<from she: date of. purchaseFor financial statement presentation purposes;: cash and cash equivalents are "shown as cash and'litvestmertts and. °restricted cash and' „_. investments in the proprietary funds;: Investments • Investments are stated at lower.of amortized cost or market, except for investments of the deferred compensation plan which are stated at market value. . Cash and investments are pooled to maximize investment. yields Interest eamed on the investments is all to the - .respective funds based on.;each funds average monthly . cash and investments balance,' Lease Receivable . Lease receivable represents lease payments., due on :'property donated. to the City during fiscal year 1993. The lease term `omthis property runs through fiscal year 2007. As the ■ revenue recognition criteria have not been met, a corresponding deferred revenue has been recorded. 0 21 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 N 0 22 • Notes Receivable Included in notes receivable is a $200,000 loan to the City Manager to purchase a home in . the City. The employment contract with the City Manager requires the Manager to reside in the City and provides City assistance in acquiring a residence. The loan to the Manager is an equity sharing loan and is due within six months after termination of the employment . contract. Inventories . Inventories are valued at cost, which approximates market, using the first -in, first -out method. The City follows the consumption method for inventory control. The costs of ■ governmental fund type inventories are recorded as expenditures when consumed.' General Fixed Assets ■ The general fixed assets of the.City are accounted for:in a separate self - balancing account group described as the "General Fixed Assets Account Group ". These general fixed . assets are capitalized at historical cost or 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 arebot depreciated. . The City has elected not to capitalize the cost of building or acquiring infrastructure fixed .. assets (e.g streets curbs and gutters, storm drains, sidewalks and light,: ,bridges, inancal systems) Consequently;. these items are not reflected in the City's combined financial' ■ statements. Proprietary Funds Fixed Assets .. ■ Fixed assets of the City's Proprietary Funds are recorded at historical cost or estimated historical cost, if actual historical co §t is not available. Contributed fixed assets are valued ■ at their estimated fair market value on the date of contribution. For debt financed;fixed assets, interest incurred during the construction phase is reflected in the capitalized value of the: asset constructed, net of interest earned on`the invested proceeds over the same period. During fiscal year 1995 -96, $876,840 of interest expense net of $305,274 interest income was capitalized. . Depreciation is,.charged over the estimated useful lives using the straight -line method. The City charges depreciation of contributed assets to retained:earnings. The estimated useful lives are as follows:` . Assets Years Structures 50 to 75 ■ Equipment 4 to 15 N 0 22 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30, 1996 • Claims and Judaments . 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 toss events.that.are expected to become claims, and (c) expected future development on claims already reported. This is based upon; historical actual results that have established a reliable pattern. Small dollar claims and tudgment: recorded as expenditures when paid. Capital Leases The City accounts for lease- purchase agreements as capital leases when title transfi the City at the end of the lease term or the lease contains :a bargain,purchase o} Therefore, the capital leases are. recorded at the present value of the future mini lease payments :as of the date of their. inception. Capital leases used for financing ge fixed assets are: recorded both as capital outlay: and other financing sources Capital payments.are accounted for in a manner consistent with general debt obligations. Property Taxes.. The assessment, levy and.collection of property taxes are the.responsibility cf the,,G of Orange The City. .:records propeity;taxes as revenue when received` from : 'the Cc except at year-.end, when property;texes received within 60 days are accruedcas rev( Property taxes'.are. assessed andcollected each fiscal year: - according "to,the follc property tax calendar: Lien date. March 1 Levy:date July 1 Due dates November 1 - 1 st installment March 1 2nd installment Collection dates ' December 10 1st installment April 10,--2nd installment Compensated Absences are to It is the City's policy to permit employees to' accumulate`earned but unused vacation and limited amounts of earned but unused sick leave benefits which vrnll be +paid to employees upon separation from :City service. Beginning in fiscal year. b0b the City adopted a general leave plan to replaceahe.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 c6rnpensation. 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 23 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1996 • time off or cash payments at termination or retirement. Benefits that have been earned but are not yet available for 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 "Memorandum ■ Total columns on the combined statements are captioned 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 be held by :outside fiscal agents under the provisions of certificates of participation and investment funds in its deferred compensation plan. • Cash and investments at June 3.0, 1996 consisted of the following: Unrestncted. cash and. investments: . Pooled cash deposits $ (595,145) Pooled investments 44;353,494 Investments - deferred compensation plan 25,215,057 Total unrestricted cash and investments ,: 68,973,406 Restricted cash and investments: ■ Cash and investments with fiscal agents 9,645,365 Total cash and investments $78,618,771 Authorized Deposits /Investments ■ Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City may deposit and invest in the following: . • Certificates of Deposit.(oETime Deposits): • Negotiable Certificates of Deposit . • Bankers Acceptances • U.S. Treasury Issues • Federal Agencies Securities ■ • Commercial paper • Repurchase Agreements and Reverse Repurchase Agreements 24 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30, 1996 ■ • Passbook Savings Accounts 6 Local Agency Investment Fund (State of California Investment Pool) ■ • County Investment Pools (Los Angeles and Orange) • Medium Term Notes . • Asset - backed securities.. ■ • AsseUlnvestment Management Agreements Deposits ■ Deposits consist of cash and demand deposits accounts. . Deposits n . .. banks are maintained in financial institutions which provide Federal Depository Insurance ■ Corporation protection on the bank'balances. The California Government Code :requires California banks and savings and loan associations to secure a city's deposits by pledging government securities as collateral. The market value of pledged securities-must 6qual at ■ least 110% of a city's deposits. California law also allows financial institutions to. s ®cure city deposits by pledging first trust deed mortgage notes:having a value of 15t)% of 4:6 "s total deposits. The City may ,waive. collateral .requirements for deposits which are fully . insured up to $100,000 by federal depository insurance. The City s deposds at year end are categorized below to give an indication of the level of . credit risk. assumed by the Cii y. in three categories as follows: Category 1 Insured or.collateralized with securities held by the City or by ft . agent in the City's name. Category 2 Collateralized with securities . held by the pledging financial . institution's trust department or agent in the City's ,name ■ Category 3 Uncollateralized As of June 30;1996, the City's deposit balances were.ias follows Category Bank Carrying 1 2 3 Balance Amount Petty Gash $5,041 Deposits: Demand; deposits $240,99:4 $668,978 $899,972. 60( 0,186) Total*deposits,: , $240,994 $658,978 $ $899;972 $ 59( 5,145) Investments ■ The investments that are represented by specific identifiable investment securities are classified as to credit risk by three categories as follows: . Category 1 Insured, registered, or securities held by the City or its agent in the City's name. 25 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1996 Category 2 Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. Category 3 Uninsured and unregistered, with securities held by the counterparty or by its trust: department or agent but not in the City's name. The City's investments at June 30, 1996, are summarized below for the credit risk, carrying amounts, and market1contract values: fiscal agents: Mutual funds* Deferred compensation fund: Deferred annuities* ' Mutual funds" Total deferred compensation investments * Not subject to categorization. $9,645,365 $9,645,365 $343,138 $343,138 24,871,919 24,871,919 $25,215,057 $25,215,057 At no time during the fiscal year did the City borrow funds through the use of reverse - repurchase agreements. 26 Category Carrying. Market/Con- 1 2 3 Amount tract Value Pooled investments: U.S. Treasury Notes: $10,438,910 $10,460,394 $20,899,304 $20,688,122 Federal Home Loan Bank 988,290 1,993,358 2,981,648 2,984;911 Federal Home Loan Mortgage-Corporation :3,492,846 3,492,846 3,492562 Federal.Farm>Credit Bank 502,541 502,541 499,245 Federal National Mortgage' Association 3,475;220 1,479,922 4,955,142 4,911,926 Money market: funds* 4,279,179 4,279179 Repurchase;agreement 550,000 550,000 550,060. Medium. Term Notes . 2,019,690 1,826;729 3,846;419 3,805,714: Commercial'Paper . 1,250,075 1,250,075 1 1,250,0 State of: California: :" Local Agency . Investment Fund` 1,526,154 1.5261, 154 Los Angeles County Pooled Fund* ': 70,186 70;1;86 Total pooled' investments $21,665 031 $16 812;944;:$ - $44,353,494 $44 058074 Investments with fiscal agents: Mutual funds* Deferred compensation fund: Deferred annuities* ' Mutual funds" Total deferred compensation investments * Not subject to categorization. $9,645,365 $9,645,365 $343,138 $343,138 24,871,919 24,871,919 $25,215,057 $25,215,057 At no time during the fiscal year did the City borrow funds through the use of reverse - repurchase agreements. 26 CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1996 • (3) Fixed Assets . A summary of the changes in General Fixed Assets is as follows: Balance Balance ■ July 1,199 Additions Deletions June 30, 1996 Land $24,580,998 $24,580,998 . Structures 38,421,877 $489,331 38;911,208 Equipment 10,349,188 178,257 $10,477 10;516,968 $73,352,063 $667,588 110477 $74 009,1174 ■ A summary of the changes m the Proprietary Fund Type fixed assets are as follows Balance Balance . July 1; 9995 Additions Deletions June 30, ;1996; Enterprise Funds.. . . Land $3,055,613 $3,Q55,613 Structures :: 66,396,045" $18,221,882 $156,925 84,461;00.2 ` Equipment.. .:, 620;249.. 50,922 671,471 ■ Construction in progress 4 889 033 4,889,033 ..74,9601940 18,2721804 5,045,958 88,187,7811. Less accumulated depreciation (42,868,718j" (1,850,626);: •.: (156925) (44,562,419) ;? ■ Net $32092,222 $16,422178 - `$4,889;033 $43,625,367 Internal Service Funds: Equipment $6,203,567" $2,192,761" $391,553 $8 004,7"15; Less accumulated depreciation (2,461,174 - (1,008;235) 31( 0,5611 848 (3j,151848 Net $3,742,393 " $1 184,526 $80,992 '$4,845,927 (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: 27 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 0 0 28 ■ Balance Balance July 1, 1995 Additions Retirements June 30, 1996 ■ Certificates of participation $ 7,235,000 $145,000 $7,090,000 Note payable 3,019,239 100,506 2,918,733 ■ Capital leases 248,296 166,902 81,394 Total $10,502,53 $ -_ $412,408 $10,090 127 • Certificates of Participation ■ On June 1, 1992 the Newport Beach Public Facilities Corporation issued $7,500,000 of Certificates of Participation to finance the construction: of the new Central Library. In turn, the City entered into a project lease with the Newport Beach Public Facilities . Corporation to lease certain property, facilities, improvements and equipment. The lease:::payments to be. made by the City will be held by a trustee who will make: semi annual :payments on the certificates of participation. The lease payments began:. May 15,-.1 994 and.are in amounts sufficient to cover the payment; of principal and: .....interest. of:the certificates. Principal payments range from $135,000 to $560,000 from : ■ June.1, 1995 through June 1, 2019 at an interest rate from 6.0% to 6.2 %. At June 30, . 1996 the City has a required cash reserve balance for debt service of $579,731, which ` is recorded'as a restricted asset and reservation of fund balance in the Debt Service Fund The: certificates outstanding at June 30, 1996 amounted to $7,090,000. • Note Payable - Note payable consists of a: note to :the California Department of Boating ,and Waterways.in 1987 fora 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, 1996 amounted to $2,918,733. • Capital 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 arid :software to the . financial management and data processing systems. The terms of the leases range from three to five years and are payable monthly. The interest rates on these obligations range from 5 % "to <9 %o.. 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 $860,380 and are included in the General Fixed Asset Account Group. 0 0 28 CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1996 • Annual Amortization Requirements of Long -Term Debt ■ The annual requirements to amortize outstanding debt included in the General Long -Term Debt Account Group as of June 30;.1996, are as follows: Year Ending Certificates of Note Capital June 30 Participation Payable Leases _ Total . 1997 $587,685;, $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 3,1 ": 823,719 62 2001 583,685 '. 236,372 ~:8211,057 Thereafter 10,569,580.' :, 3,177,679 13,747`;259 ■ 13;497,905 4,359,539 87972 ` 171945416 . Less:.amount:repre- senting interest '.(6;407',,9'05 (1,440,806) (6,578 7 885,2 . $7,090,000 $2,918733 $81,394 $10,090 127 . Proprietary Funds Long-term Debt Enterprise Fund A summary of changes:in long =term debt of the enterprise funds is as follows . Balartre.: Baiahce "July,! 1995 Additions` Retirements' June 30, 1996` . Water Revenue Bonds $17,100,000 $ $820;000 $16,280 000 Less current portion (820,000) 845,000) . Total long -term $16;280,000 $15 435 000 The current portion in the accompanying General Purpose Financial Statements includes $1,283,420. principal of $845,000 and accrued' interest payable of $438,420 fora totat of . Water Revenue Bonds In 1995, the City issued $171,00,000 .of water, revenue bonds 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 %. At June 30, 1996, the City has a required cash reserve . balance of $1,710,000 which is recorded as a restricted asset. Fifteen annual principal payments are payable on August 1, and semiannual interest payments are payable on 0 29 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 0 30 February 1 and August 1. At June 30, 1996, the outstanding principal balance was $16,280,000, and accrued interest payable was $438,420. Water revenue bond debt service requirements to maturity, including $6,845,684 of interest are as follows: ■ Year Ending June 30 Amount • 1997 $1,,699;131 1998 1,682,905 1999 . 1,674,799 ■ 2000 1,664,543 2001 1,657,003 Thereafter 14,747,303 . Total $23,125,684 lntemai Seryice.Funds A summary of changes in long -term debt of the internal service funds is as follows: . Balance . Balance July 1, 1995 Additions Retirements June 30, 1996 - ■ Claims and judgments payable $9,656,371 $2,929,565 $4,574,203 $8,011733 ■ Compensatedabsences.' 7,306642 1,337,344 1,409,338 7,234,648 Capital - leases. 724,651 387,592 291,728 820,515:a 17,687,664 $%654,501 $6,275269 16,066,896 Less current portion (3,249,273) (3,827,341) ■ Total long -term $14,438,391 $12,239,555 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- reported claims; based upon past experience, modified for amount trends and information. While the ultimate amount of., losses 1ricurred through June 30, 1996 is ■ dependent on future developments; based upon dnformation 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, 1996, amounted to $8,011,733. 0 30 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30, 1996 • 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, 1996, is $7,234,648.. -.. ■ Capital Leases ■ Rolling Stock Leases Equipment.:14aintenance lntema /:Service Fund:.. In the current and prior fiscal years, the City entered into five lease - purchase agreements, payable annually, as lessee for financing the acquisition of a fire truck, heavy duty pumper fire ■ apparatus, two air sweepers, 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 6a h.lease is between 4.98% and 6 98%'s: The lease agreements .qualify as capital leases for ■ accounting purposes as the title transfers at the end of the lease.term'or th lease contains a bargain .purchase;option. The assets acquired, totaling $1,461,506, were classified as equipment in the Equipment Maintenance Internal Service Fund. • Annual Amortization Peg irements.of Internal Service Fund Capital Lease Obligations:; . The annual. requirements to amortize outstanding i capitalized lease obligations included in the Internal Service'Fwnd as of June 30, 1996; are as follows . Year Ending Capital June.30` Leases . 1997 $321,559 1998 321,559 1999,;, 185192 ; 84,571. 912 881'' ; Less: amount repre- senting interest 92 366 $820515: (5) Special Assessment Districts Bonds ■ The City holds reserve funds on behalf of bondholders. the assets are recorded in the Special Assessment Agency Fundr...Bonds outstanding at June 30 1996 for each district under the Bond Acts of 1911 and 1915, and other special assessments :are as follows: 0 0 31 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 7- : Bonds Original Outstanding Issue June 30, 1996 ■ Assessment District No. 56 China Cove $145,254 $10,570 No. 57 Corona Highlands 938,598 408,566 . No. 58 Cannery Village 107,746. 65,000 No. 59 McFadden Square 530,609 435,000 No. 60 Bay Avenue 236,533 195,000 . No. 61 East Bay Front 127,299 105,000 No. 62 Hazel Drive 335,210 275,000 No. 63 Newport Island 536,531 465,000 ■ No. 64 Channel Road 180,794 180,794 No. 65 Rocky Point 53,125 44,000., No. 66 East Newport 171,911 155,000 No. 67 CDM Blk -133 64,431 64,431 No. 72 Balboa Coves.: ,, . 192,908 .192,908 No: 95-1. CIOSA 7;500,000 7,500;000 . Although the City, collects and disburses funds for these districts, the City has no obligation;.: or.duty to pay any delinquency out of any .availabla funds of the City. Neither the faith and, . . credit: nor the taxing power of the City is pledged to the payment of the bonds, and therefore the bonded indebtedness is not shown in the financial statements of the City. ■ (6) Risk Management - General Liability and Workers' Compensation The City is expgsed to .various risks of loss relatedito 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. For general liability, the City has excess insurance coverage of $10 million per occurrence with a self - insured ■ retention (SIR) of $1 million per occurrence. . On September 1, 1995, the City obtained excess workers' compensation and.e,mployer's . liability insurance coverage of $1;000,000 per occurrence with a $300,000, SIR. This coverage provides for work related accidents and diseases.. • 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 reported 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 32 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30, 1996 • effects of inflation, recent claim settlement trends including frequency and amount of pay- outs and other economic and social factors. The liability claims payable include . $1,550,000 which represents the discounted present value at June 30, 1996; the claims were discounted using an interest rate of six percent. . June 30, 1995 June 30, 1996 Unpaid claims, beginning of fiscal year $12,763 140 $9,656,371 ■ Incurred claims (including IBNR's) ,, 1,838,594.: 2. 929,565 Claim payments (4,945,36] 4,574203 . Unpaid claims, end of fiscal year $9,656,371 $8,011 733 (7) Deferred Compensation Plan The City offers its employees a deferred` compensation plan created.ini.accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits ■ them to defer a portion of their salary until future years. The deferred' compensation is not available to employees until termination; retirement, death; or unforeseeable emergency . ..? All amounts of compensation,deferred under the plan, all property and rights purchased. with those amounts, and.all income attributable to those amounts, property, of 0ghts 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 thie fair market . value of the deferred account for each participant. Recently approved federal legislation will require thal.Section 457 plan : ass ets be held in. trust for employees . This chan6e;:.expecte i to be implemented by,T998, will -mean that: employee assets held in Section 457 plans will no longer legally reniain the property ot. tie City. At that time, they will no longer be subject to claims of,the,City's'general creditors., The City has no liability for tosses under the plan but 'does have the fiduciary responsibility under the plan of due care that would be'required of an. ordinary prudent investor;° The City believes that it is unlikely it will use the assets to satisfy the claims., of generalCreditors in the future. The assets under the plan are reported at market value`in an Agency Fund and totaled $25,215;057 at June 30, 1996. (8) Retirement Plans ■ rian vcau iNUui r- vonncu.uci icui riaii The City contributes to the Califomia Public Employees' Retirement System (PERS), an . agent multiple - employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. The City's covered payroll for employees participating in the System for the . year ended June 30, 1996 was $37,146,628. The total payroll for the year was $39,946,818. ■ 33 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 All employees who work on a half -time basis or more are eligible to participate in the System. Benefits vest after 5 years of service. Public safety employees who retire at or after age 50 with 5 years of credited service are entitled to an annual retirement benefit, . payable monthly for life, in an amount that varies from 2% at age 50 to a maximum of 2.7% at age 60 of the highest year's salary (miscellaneous 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 and all other requirements are established 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. 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, $2.00 per covered,. member per mdhth. • 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 be obligation" is a standardized measure of the present value of pension benefits, adjusted for the effects of step -rate benefits, estimated to be payable in the future as a result of employee service to date. The . measure is intended to help assess the funding status of the System on a going- concern basis, assess progress made in accumulating sufficient assets to. pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of . credited < projected 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 1996 (based on June 30, 1995 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, (c) no additional projected salary increases for miscellaneous employees and safety employees, attributable to . seniority /merit, and (d) no post- retirement benefit increases. The total assets in excess of pension benefit obligation applicable to the City employees . was $8,833,051 at June 30, 1996 (based on June 30, 1995 data) as follows: 34 CITY OF NEWPORT BEACH . Notes to General Purpose Financial Statements June 30, 1996 • Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits . and terminated employees not yet receiving benefits $70,272,872 Current Employees:. . Accumulated employee contributions ` including allocated investment earnings 38,964,605 Employer - financed vested:., 45,180,377 . Employer - financed non- vested ;;1 ,055,652 Total Pension Benefit Obligation - 155-,473,506 • Net Assets Available for Benefits at.cost (Market Value is $174,657,871) 164 30665i" • Assets.in Excess of Pension Benefit Obligation $8833,051 '- In the prior year, the City reported accumulated assets in. excess of pension benefit obligation of $2.1;;953;868 (bated'on information provided by PIERS). Actuarially Determined. Contribution Requirements and Contribution Made PIERS uses the Entry . Age Normal Actuarial Cost Method which is a projected benefit cost method That is, it takes.into account those benefits that are'expected to be earned in the future as well, as .those .already :accrued.:'According to this cost method, the. normal cost. for.an employee: is the .level amount which would fund the projected - benefit if. it were paid?:: annually from.date of.employmeaiintil retirement. PIERS uses -a modi cation.of.the Entry Age Cost Method in which the employer's total normal cost" is expressed as` a leuef percentage-of payroll. PERS also uses the level percentage of'payroll method to.amottize any unfunded actuariala abihties.: The amortization period :6f the Unfunded actuarial Ii a4iEt ends in the year, 2000 for`prior service benefits and_ the,year 2000 for current service . benefits. The significant actuarial assumptions used to compute ,the actuarially determined contribution requirement are the same as those used to compute. the pensiori° benefit described: obligation, as previously The contributions to the System for fiscal year ended June 30* pfr$5,458,517 were made in accordance with actuarially determined.'requirements computed through an actuarial valuation: performed as of June 36 , 1995: The contribution consisted of (a) $5,362,883 normal cost (14.4% of current covered payroll) and,`(b)405,634 amortization of the unfunded actuarial: accrued liability (,2% of current covered payroll). The City contributed employer contnbution,of $2;529,997 (6.8 % ofi current covered payroll); and on behalf of employees $2,928,520'(7:8a1a of current covered payroll). Of these amounts, $851,276 was funded by PIERS surplus accounts. 0 0 35 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1996 • 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 allyears 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 (1). (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 (1)1(2) (2) -(1) Payroll (4)/(5) Contributions 715 1988: $66,906 $68,264 98.0% $1,358 $23,600 5.8% $2,390 10.1% ■ 1989 16,117 ..75;332 101.0 % (785) 25192 (3.1 %) 2,111 8.4 %0 1990 '85,574 .82;421 103.8% (3,153) 27,312 (11.5 %) 2,571 9:4% 1991 95,118 96;389 98.7 %` . 1,271 30,092 4.2% 2,680 8.9% . 1992 '1.04,012 ..105,027. 99.0% 1,015 .' 32y482 3.1% 3,143 97% 1963:.. 118,077 97.2% 3,270 33,369 9.8% 2,991 9.0% 1994. 126,813 121;320 104.5% (5,493)- 33,54A (16.4 %) 2,983 8:9% 1995 154,866 132912 116.50/( (21,954) 37,406 (58.7 %) 2,697 72"/0 . 1996: 164,307 '155,474 1 0.6% (8,833)'. 37,147_ (23.7 %) 2,530 6;8% Plan Description - Defined Contribution Plan` . As of January 1; 1992 the City entered into a defined. contribution plan with Public Agency Retirement System ( "PARS ") forall of its part-time employees. In a defined contribution . plan, benefits depend solely on amounts contributed t6'the plan plus investment earnings. All part-time employees are eligible to participate frorn the date of employment., Federal legislation requires contributions of at least 7.5% to: a retirement plan, and. City Council . resolved to match the employees' contributions of 3.75 %. The City's .contributions for each employee (and interest eamed,by the, accounts) are fully vested immediately. . For the year ended June 30, 1996,the City's covered payroll for:employees participating in the plan was $1,885,575. The City made employer contributions of $70,709 (3.75% of current covered payroll).:; Assets of the plan totaling $1,230;772 at June 30, 1996 are . reported as deposits in the Deferred Compensation Agency Fund. As of June 30, 1996, there were 285 employees participating in the plan. . (9) Early Retirement Program On June 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 36 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements June 30, 1996 organization, The Early Retirement Program provides participating employees with a supplement to their normal PERS retirement benefits by an additional payment from the City. The assets of the program are on deposit in the Deferred Compensation Fund. (10) Post - Employment Health Care t dnefits As established by a CityCouncil approved Memorandum of Understanding between the City and its employees„ the. Cify, :provides .post- employment and care benefits. Employees who retire from the City;with seven years of:service and participate 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 emplovees 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 fiseat,years 1995 -96 and 1994 -95 were $232;304. and $239,614, respectively. As of June 3d,11-996, 285 participants were eligible.to receive benefits. (11) Interfund Receivables and PayaDies At June 30, 1996, interfund receivables an payables were as follows Capital Projects Fund: CIOSA Construction 2,227,346„` Enterprise Fund: Cannery Village 5$5 961 Internal Service Fund:_` (12) Changes in Contributed Capital 165 101,690 $4,556,282 A summary of the changes in contributed capital of the Enterprise Funds is as follows: 37 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 The City had investments in the County of Orange (County) investment pool, and on . December 6, 1994, the County filed a petition under Chapter 9 of the United States Bankruptcy code. The City approved the Comprehensive Settlement Agreement (Settlement) on April 10, 1995. On May 2, 1995, the United States Bankruptcy Court for . the Central District of California, Santa Ana Division (Bankruptcy Court), approved the Settlement entered into by and among the County and pool participants. The County and 38 • Water Wastewater Total Balance, July 1, 1995 $4,753,734 $9,145,593 $13,899,327 . Additions 306,760 306,760 Balance, June 30, 1996 $5,060,494 $9;145;593 $14,206,087 Contributed capital of the Internal Service Funds was unchanged as follows: Equipment . Balance, July 1, 1995 $4,097,648 ■ Balance, June 30, 1996 $4,097,648 • (13) Reserved and Designated Fund Balances Reservations of fund balances consist of the following:: . Special Debt Capital General Revenue Service Projects ■ Fund Funds Fund Funds Total Encumbrances $2,129,127 $2,423,814 $3,613,926 $8;166,867. ■ Inventories i 139,614 139,614 ' Long -Term Receivable 200,000 200,000 ;; Debt Service $579,231 , 579,731.: . Total Reserved $2,468,741, $2,423,814 $579,731 $3,613,926:, $9 086 212 ■ Designations established as of June 30, 1996 are as follows: Special Capital General Revenue `Projects Fund Funds ' ' Funds Total ■ Contingencies $5,773,728 $5,773,728 Special Projects 2,988,205 $12,274,295 $170,758 15;433,258 ■ Total Designated $8,761,933 $12,274,295 $170,758 $21,206 986 • (14) Due from Other Governments The City had investments in the County of Orange (County) investment pool, and on . December 6, 1994, the County filed a petition under Chapter 9 of the United States Bankruptcy code. The City approved the Comprehensive Settlement Agreement (Settlement) on April 10, 1995. On May 2, 1995, the United States Bankruptcy Court for . the Central District of California, Santa Ana Division (Bankruptcy Court), approved the Settlement entered into by and among the County and pool participants. The County and 38 CITY OF NEWPORT BEACH ■ Notes to General Purpose Financial Statements June 30, 1996 ■ pool participants amended the May 2, 1995 Settlement Agreement, and on May 15, 1996, the Bankruptcy Court approved the amendment. • The Settlement provides for the City to receive Settlement Secured Claims which are solely secured by a first priority, security interest on 65 %,of net litigation proceeds if and . when recovered by the County from third -party defendants; The City also received Repayment Claims which are solely secured by a second priorityisecurity interest on 65% of net litigation. proceeds if and when recovered by the County fromi third -party defendants. ■ The Repayment Claims are an "allowed" claim in the County's bankruptcy case under the terms of the Settlement:. A litigation fund has been formed by all ,pool; participants (including the County) with $50 million available to pursue litigation. ■ At June 30, 1996, the balance of $3.;333,100 has been classified as due from other governments with an offsetting allowance for uncollectable receivable. The allowance, was . established to reflect the uncertainty of collection. The .receivable was allocated. to all funds based on each fund's investment balance. ■ tion Enterr(15) Segment ise Activities There are three services provided by <the City which are financed primarily by us r . charges parking, water services and sewer services:: These services are accounted for separate enterprise funds. . The key financial data forahe year ended June 30 1996 for these Enterprise Funds are as follows: . Cannery~ . Village , Parking Water Wastewater Total • Operating revenues $75,861 ` $14,766,566'` $2,180819 $17,023,246 Operating expenses: ' . Depreciation ` -4,299 , " 4,125,656` 720,671 1,850,626.` Other 13;220;028 ; 1,284,787 14 504;815 Operating income (loss) 71,562 420,882 .:. 475,361 667;905 ■ Net income (loss) 71;562 1,494,349 . 303,098` 1 869;009 Current capital contributions 306,760 ■ Property, plant and equipment:. Additions 17,$26,115 446 (Deletions) Net working capital(585,96.i) 1 Total assets 1,113 ;43$ Outstanding long -term 151 ` 12,190,919 liabilities 15,435,000 Total equity 527,477 32,483,522 39 12,151,373 760 18,272,804 (5,045,958) 16,972,005 65,590,508 15,435,000 45,162,372 CITY OF NEWPORT BEACH Notes to General Purpose Financial Statements . June 30, 1996 0 0 40 ■ (16) Individual Fund Disclosures At June 30, 1996, the Contributions, Building Excise Tax and Environmental Liability . Special Revenue Funds had deficit fund balances of $81,838, $16,012 and $106,692, respectively. These deficits will be eliminated by future revenues or transfers from other funds. In addition, the accumulated deficit of $17,136,261 in the Insurance Reserve . Internal Service Fund is expected to be eliminated by future interdepartmental charges. The environmental liability Special Revenue Fund has $194,911 of expenditures and none were budgeted as this was a new fund established by the City Council during the year. . (17) Commitments and Contingencies • Numerous claims and suits have been filed against the City in the normal course of business. Based upon information received from the City Attorney, Contracted Attorneys and the Risk Manager, the estimated liability under such claims would be adequately ■ covered by the accrued claims and judgments payable (See Note 6). The:City entered into a Circulation Improvement and Open Space Agreement (CIOSA) ■ with a developer whereby the City could receive up: to $14,395,572 to be used. only for certain transportation and circulation improvements, of which $1,327,503 had been: received and expended as of June 30, 1996. Amounts received constitute a loan without ■ interest, the.;sole source of repayment is City - pledged 50% of future Fair Share Fees: (developer. impact :fees) which are recorded in the Circulation and Transportation Special Revenue Fund.;: During. the year ended June 30, 1.996, the City received $92;326 of Fair: ■ Share Fees,:,and.$46,1881 has been accrued or paid to the developer. No additional :1 liability has been recorded„ because any future repayment is uncertain; any amounts not`: repaid by February 20 2016 will be forgiven:; . (1:8) Subsequent Event.. • Subsequent to ,year -end, the City entered, into a lease agreement in the amount of $1,759,560. The lease proceeds together with $300000 of available City funds provide financing for the acquisition of "$2,059;560 of police information equipment. The . equipment is pledged as collateral. The lease.is payable in four annual installments of $410,354 beginning in July 1997. The lease bears interest at the rate of 5.33% . . ■ On July 1, 1996, the City increased the coverage for public liability insurance from $10 million to $20 million per occurrence. This coverage provides for personal injury, property damage and public entity, errors and omissions. . 0 0 40 0 ■ ■ Supplementary ■ Information ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ EFID ■ �3 ■ � b FIE ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ s nk AA 1Z PIN; -AMIN �11 AIR-- jo THE GENERAL FUND The General Fund is used to account for fiscal resources which are: M CITY OF NEWPORT BEACH . Comparative Balance Sheets - General Fund June 30, 1996 0 1996 1995 ■ 41 Assets ■ Cash and investments $ 6,990,465 $ 9,106,602 Accounts receivable and accrued revenues 1,918,501 1,084,732 ■ Due from other governments 2,397,767 2,429,237 Allowance for doubtful accounts (446,381) (476,565) Due from other funds 4,556,282 1,366,962 ■ Inventories of material and supplies, at cost 139,614 198,441 Restricted assets - cash and investments 4,515,000 . Other assets 119,009. 13,500 200;000 Notes receivable 200,000 . Total Assets $ 15,875,257 $ 18,437,909 ■ Liabilities and Fund :Balance . ■ Liabilities: Accounts payable and accrued liabilities $ 1,215,828 $ 1,717,922 Accrued payroll 1,323,336 1,700,579 . Deferred revenue 468,362 296,871 Deposits 1,637,057 1,785,998 Current portion of debt. 4,452,292, • Total Liabilities 4,644,583 9,953,662 ■ Fund Balance: " Reserved: . Reserved for encumbrances 2;129,127 2,341 378 Reserved for inventories 139,614 - 198 441 Reserved for long -term receivable 200,000 200,000. . Unreserved: Designated for special projects 2,988,205 3;365 834 Designated for contingencies 5,773,728 2,378,594 • Total Fund Balance 11,230,674 8,484,247 . Total Liabilities and Fund Balance $ 15,875,257 $ 18,437,909 ■ 41 0 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures . and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended June 30, 1996 ■ 1996 1995 Variance ■ Favorable Budget Actual (Unfavorable) Actual Revenues: ■ Taxes $ 41,046;230. $ 42,853,480 $`,1_,805,250 $ 39,719,830 Licenses, fees and permits 1,369,154', 1,663,469 -29 4 315 1,112,873 Intergovernmental revenue 4,878,657 4,728,4i.3 . ;; (149,6.84y,-. ,'- 7,113,785 . Charges for services 6,268,392 6.020j272 ., i. (248,120) 4,884,630 Fines, forfeitures and penalties 2,945,606 .2,795 045 (149;955) 3 067,817 Revenue from use of money and property 5,612,775 5.792,4E4 '- ; 179,679 5;067,329 Contributions 263;731 146 457 (117,274) 1,441340 Other 247,000 150,579 = ':(96,421) 360,652 . Total Revenues 62,632,939 84;150729. 1,517,790 61,471,2511. • Expenditures: Current: General government 8,336,622 5,442 862 (106,240) 5,152 151 * ■ Public safety 34,719,541 34173,622 .. 545,919 33;163 911 .'- Public works 14,464 834 14;250 842 213,992 1,,4;382 640 ; Community development 2,663,524 2,716 712 ? (53,188,) 2.930 048 ■ Community services:.: 5 762,566;' 5,6,70,170 92,396 51722.1113 Capital Outlay 6,655,991.` 4,608,037 2,047,954 5,568817 Debt Service: =. . Principal 166,902' 166 902 "294 530 Interest and. fiscal charges .:. 11 015;.1: 74 386 (63,371) 184 907 Total Expenditures . 89,780,995 6T 103 533 2 677,462 0,394311 7- ■ Excess (Deficiency) of Revenues Over Expenditures (7,148,056): ``_ 4;195,252 ■ (Under) (2;652,804Y , (5 'g#.1361) Other Financing Sources:(Uses): . Operating transfers in 6j031.1 6 245 683 214;5'19 5;296,022 Operating transfers out (600,455) (580,430), ' +20,025. (875,820) Proceeds from long -term debt 53,865 Proceeds from sale of assets 25,500 33,978 $ 476; 7,223 . Total Other Financing Sources (Uses) 5!4563269 5,699 231 243,022 4,481,290 . Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures . and Other Financing Uses (1,691,847) 23746,427 4,438,274 (1,446,571) Fund Balance, July 1 8,484,247 8,484,247 9,930,818 . Fund Balance, June 30 $ 6,792,400 $ 11,230,674 $ 4,438,274 $ 8,484,247 ■ 42 ■ 90 rr PINt N J p i r it 0 SPECIAL REVENUE FUNDS 0 0 0 M 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 Tax Fund accounts for all State Gas Tax related revenues and expenditures, including street repair; construction,,and. maintenance. State law requires that these funds be used exclusively for m. aintenance of the street, and highway system. . The Asset Forfeiture Fund was established.to account for all -revenues resulting from the seizure of assets in conjunction with criminal cases (primarily drug trafficking). It is the City's . policy that-all such funds shall be used fore nhancement of law enforcement programs. The Tide and Submerged Land Fund is used to account for all. revenues and expehditures ■ refafed to the;operation of the,City's.tidelands, including beaches and marinas.: The Contributions Fund is used to account for revenues received from other government ■ agencies or. %private „developers and expended .for specific street or highway construction projects. The Circulation and Transportation Fund is used to account for fair share revenues collected .: from developers and restricted:for capital . improvement projects meeting the circulation. element of the City's General Plan The Building Excsse Tax Fund is used to account for revenues received from builders or,. . developers on bwlding or remodeling projects within the City. Expenditures from this fund are for used exclusively pubtic safety, libraries, parks,.aeaches;: or recreational activ.ities.. , The Comb►red Transportation Fund is;;used to, account for the revenues'and expenditures of "County funds received from the, Orange Combined Transportation Funding Program. Expenditures from this fund are used exclusively for transportation related purposes. The Community Development BIoq Grant Fund is used to account for revenues and expenditures relating to the City's Community Development Block Grant program. Thesefunds are received from the Federal, Department of Housing and' Urban Development and. must be expended exclusively on programs for low or moderate income individuals /families. The Ackerman Donation Fund is used,.to account for the receipt and disbuisenient of funds Ackerman received from the Trust. These funds are split between the City, and the University of California, Irvine The City's. portion must be used for library and scholarshippurposes. The Air Quality Management District Fund is used to account for revenues received from the South Coast Air Quality Management.DiStnct restrictedforthe use of reducing air pollution. The Environmental Liability Fund is used to account for solid waste fees restricted for mitigation of future environmental liability relating to the handling of solid waste. 0 0 M 43 Assets Cash and investments Accounts receivable and accrued revenues Lease receivable Due from other governments Allowance for doubtful accounts Other assets Total Assets CITY OF NEWPORT BEACH Combining Balance Sheet All Special Revenue Funds June 30, 1996 Tide and State Asset Submerged Gas Tax Forfeiture Land $ 4,434,553 $ 128,510 $ 172,729 Circulation Building and Excise Contributions Transportation Tax 373,793 $ 130,135 95,266 11,494 9,287 (95,266) (11,494) $ 9,040,984 210,930 $ 853 (210,930) (853) 77,231 $- 4,434,553 $ 128,510 $ 633,040 $ 130,135 $ 9,040,984 $ Liabilities and Fund Balances Liabilities: ■ Accounts payable and and accrued liabilities. $ .. 62,096 $ 128,510 $ 244,302 $ 39,108 $ 78,900 $ 4,547 ■ Accrued payroll 1,390 Due to other funds 172,865 Deferred revenue 216,928 170,420 ■ .Deposits. Total Liabilities 62,096 128,510 633,040 211,973 78,900 16,012. ■ Fund Balances: Reserved for encumbrances 1,114,081 341,755 Unreserved: . Designated for special projects 3,258,376 8,620,329 Undesignated (81,838) (16,012) • Total Fund Balances 4,372,457 (81,838) 8,962,084 (16,012) Total Liabilities and ■ Fund Balances $'4,434,553 ` $ 128,510 $ 633,040 $ 130;135 $ 9,040,984 $ 44 ■ 0 • Community Air Quality Combined Development Ackerman Management Environmental Totals ■ Transportation Block Grant Donation District Liability 1996 1995 . $ 525,700 $ 115,080. $ 298,489 $ $ 14,71.6,045 $ 12,721,572 48,000 551,928 '. 380,870 ■ 888,006 888,000 962;000 3,303,725 $ 139,540 25,354 3,796,449 1;447;472. (19,465) (5,409) (343,417.) (365,699) -;, ■ 77,231 69,520.. $ 3,657,960 $ 139,540 $ 1,003;080 $ 318,434 $ $ 19,686,236 $ 15,215 544 ■ $ 49,332 $ 59,442.:.: .$ 456 $ 840 $ 667,533 $ 610,510 ■ 1,390 1,390 80,098 :: $ 106,692 371;120 691,811 2,877,278 888,000 3,982,206 1,161,166 . 170,420 164,412 . 2.k6,610, 888,456 840 106,692 5,192,669 2,629,289 . 931.,350 36 1628,, 2,423,814 1,076,582 77,996' " 317,594 12,274,295 12,015,819 (106,692) (204,542) (506,146) ■ ., 931,350 114,624 317,594 (106,692) 14,493,567 12,586,255 • $ 3,857,960 $ 139,540 $ 1,003,080 $ 318,434. $ $ 19,686,236 $15,215544 ■ ■ ■ 0 45 0 0 ■ 46 0 City of Newport Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances . All Special Revenue Funds For the Year Ended June 30, 1996 • Tide and Circulation State .. Asset Submerged and Gas Tax Forfeiture Land Contributions Transportation . Revenues: - - Licenses, fees and permits $ 1,073,436 Intergovernmental revenue $ 1,252,643 73,167 $ 734,147 . Charges for services 258,144 Fines, forfeitures and penalties $ 60,018 Revenue from use of money -:- . and property -- .266,041 -- 16,637 4,193,234 3,103 $ 464,484 Contributions 758,821 1,799,458 Other 1,422 ■ Total Revenues 1,518,684 76,655 5,599,403 1,496,071 2,263,942 Expenditures: . Current: General government Public safety 397,651 .. . Public works 287,673 46,188 Community development. . Community services 129,318 ■ Capital Outlay 1,332,291 418,543 1,078,133 341,385 Debt service: .Principal 100,506 ■ Interest and fiscal charges 135,866 .Total Expenditures 1,332,291: 397,651 1,0711906 '1,078,133 387,573 . Excess (Deficiency) of Revenues Over - (Under) Expenditures -- 186,393> ;.-- (320;996) 4,527.497 417,938 1,876,369 - -- . Other Financing Sources (Uses): Operating transfers in Operating transfers out (96,000) (4,584,948) Total Other Financing Sources (Uses) (96,000):x (4,584,948) . Excess (Deficiency) of Revenues and Other Sources Over (Under), . Expenditures and Other Uses 90,393 : (320,996)' (57,451) 417,938 1,876,369 Fund Balances (Deficits), July 1 4,282,064 320,996 57,451 (499,776) 7,085,715 ■ Fund Balances (Deficits), June 30 $ 4,372,457 $ - $ - $ (81,838) $ 8,962,084 ■ 46 0 M M M ■ Building Community Air Quality Excise Combined Development Ackerman Management Environmental Totals ■ Tax Transportation Block Grant Donation District Liability 1996 1995 $ 226,989 $ 88,219 $ 1388;644 $ 1,085,313 . $ 1,220,026 $ 209,797 $ 96,790 3586,570 3,357,122 258,144- 224,883 60,018 88,713 • 2,459 46;275 $ 7,728 15,975 5,015,936 4,558,919 185;000 2,743,279 510,006 . 1,422 50 229;448 1,266,301 209,797 192,728 112,765 88,219 13,Q54,013 9,825,006.. 353,45 . 397,651 226 011 194,911 528,772 2178,703:.r ....209,797. 25,738 25,738 235,535 248,134 . 116;706 246,024 294,336 49.0;355 1,325,957 4,606,664 = 2,889,547.'? . 100,506 341.178:,,,, 135,666 '140,194::r 110,355 1,325957. 209,797 116,706 25,738 194,911 6251,018 4,771562'; . . 119,093 `- (59,656) :-:,:,T6,022:.; 87,027 :(106,692) , 61802.995 5,053,444 51,354 (128,735) (86,000) (4,896;683) (6163,137) . (128,735) (86,000); (4895,683) '` (6,111,783) • (9,642) (145,656) 76,022 .. 87,027 (106692) 1,907,312 (1,058,339) (6,370) 1,077,006 38,602 230,567 12,586,255 13,644,594 . $ (16,012) $ 931,350 $ $ 114,624 $ 317,594 $ (106,692) $ 14,493,567 $ 12,586,255 ■ 47 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, 1996 1996 1995 Variance Favorable Budget Actual (Unfavorable) Actual Revenues Intergovernmental revenue $ 1,214,450 $ 1,252,643 $. 38,193 $ 1,224,923 Revenue from use of money and property 120;000 266,041 146,041 138,799 Total Revenues 1;334;450 1,518,684 184,234 1,363,722 Expenditures: Current: General government:.. Capital Outlay Total Expenditures:, Excess (Deficiency). 101,447 2,503,158 1,332,291. 1,170,867 194,117 2,503,158 1,332,291 1,170,867 295,564 of Revenues Over (Under) Expenditures (1,168 :708) 186,393 1,355,101: 1,068,158 Other Financing Uses: Operating transfers out (96;000). (96 000) .; (83,500) Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Uses (1,264,708) 90,393' ` .1;355,101 984,658 Fund Balance, July.1 Fund Balance, June 30 4,282,064 4,282,064,, 3,297;406 $ 3,017,356. $ 4,372,457. V. 1,355,101 $.4;282 {064 48 0 CITY OF NEWPORT BEACH . Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual . Asset Forfeiture Special Revenue Fund For the Year Ended June 30, 1996 1996 1995 variance Favorable Budget Actual (Unfavorable) Actual Revenues: Fines, forfeitures and penalties $ 134,360 $ 60,018 $ (74,342) $ 88,713,. Revenue from use of money and property 29,000: 16,637 (12,363) 15,914 Total Revenues 163,360 76,655 (86,705) 104,627 Expenditures: Current. . Fund`Balance June 30 $ 6,777 ,.$ - $ (6;777) $ 320,996 ter- 49 M 0 50 . 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, 1996 . 1996 1995 Variance Favorable . Budget Actual (Unfavorable) Actual Revenues: Licenses, fees and permits $ 1,115,338 $ 1,073,436 $ (41,902) $ 980,459 . Intergovernmental revenue 64,662 73,167 8,505 88,228 Charges for services 256,175 258,144 1,969 224,883 Revenue from use of . money and property 4,164,900 4;193,234 28,334 4,077,521 Other 1,000 1,422 422 50 . Total Revenues 5,602,075 6;599,403 (2,672) 5,371,141' • Expenditures: Current: Public, Works 331,881. 287;673 44;208 278,703 . .:Community services 126,698% 129,318 (2,620) 131,796 Capital Outlay 427126 418,543 8,583 166,819 Debt service: ■ Principal 100,506 100,506 96,178 Interest and fiscal charges 135,874 135,866 8 140,194 Total Expenditures 1,122,085 1,071,906 50179. 813,690 ■ Excess of Revenues Over Expenditures ` 4,479,990 4,527,497 47,507. 4,557,451 • Other Financing Uses: Operating transfers out (4,381,776) (4,584,948) (203,172) (4,500,000) Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Uses 98,214 (57,451) (155,665) 57,451 Fund Balance, July 1 57;451 57,451 Fund Balance, June 30 $ 155,665 $ $ (155,665) $ 57,451 ■ M 0 50 . 0 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, 1996 1996 Variance Favorable Budget Actual (Unfavorable) Revenues Intergovernmental revenue $ 2;495,784 $ 734,147 $ (1,761,637); Revenue from use of money and property 3,103 3,103 Contributions 758,821 758,821 Total Revenues 2,495;784 1,496,071 (999,713) Expenditures: Capital:Outlay 2,739;683 1,078,133 1,661,550 ' 1995 Actual (499,776) 51 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, 1996 Revenues: Revenue from use of money and property Contributions Total Revenues Expend@ures: Current, General government 224,616 Public works 1996 46,188 1995 Capital Outlay Variance 341,385 362,373 437,696 Favorable 703,758 Budget Actual (Unfavorable) Actual $ 205,000 $ 464,484 $ 259,484 $ 288,394 7,500,000 1,799,458 (5,700,542) 211,337 7,705,000 2,263,942 (5,441,058) 499,731 7,085,715 71085,715 7,248;296 224,616 Public works 46,188 (46,188) Capital Outlay 703,758. 341,385 362,373 437,696 Total Expenditures :: 703,758 387,573 316,185 662,312 Excess (Deficiency).. of Revenues Over (Under) Expenditures. 710.01,242 11,876,369. (5,1.24;873) (162,581) Fund Balance, July .. 1 7,085,715 71085,715 7,248;296 Fund Balance;:June 30 $ 14,086,957 r $::8,962,084` $ (5;124,873)._ $7,085,715 52 ■ 0 53 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual . Building Excise Tax Special Revenue Fund For Year Ended June 30, 1996 the • 1996 1995 Variance . Favorable Budget Actual (Unfavorable) Actual Revenues: . Licenses, fees and permits $ 329,347 $ 226,989 $ (102,358) $ 104,854,, Revenue from use of . money and property 8,000 2,459 (5,541) 1,868 Total Revenues 337,347 229,448 (107,899) 106,722 ■ Expenditures: Current: . General government 908 Capital Outlay 220,857 . 110,355 110,502 23,308 . Total. Expenditures... 220,857 110355 110,502 24,216 . Excess of Revenues.: 116,490 119,093 82,506 Over: Expenditures .2,603 . Other Financing. Uses: Operating, transfers out. (:128,735) (128,735) (100,000) . Excess (Deficiency) '.of Revenues Over (Under) Expenditures . " and Other Uses (12,245) (9,642) 2,603 (17,494) ■ Fund Balance (Deficit), July 1 (6,370) (6,370) 11,124 Fund Balance (Deficit), June 30 $; (18,615) $° (16,012) $ 2,603 ; $ ; (6,370) ■ 0 53 0 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, 1996 ■ 1996 1995 Variance Favorable ■ Budget Actual (Unfavorable) Actual Revenues: . Intergovernmental revenue $ 9,748,069 $ 1,220,026 $ (8,528,043) $ 1.1485,315 Revenue from use of and 40,000 46,275 6,275 28,406 . money property Total Revenues 9,788;069 1,266,301 (8,521,768) 1,513,721 . Expenditures: Current: ■ General government 20,728 Capital Outlay i. 8,847,082 1;325,957 7,521,125 1,488,481 • Total. Expenditures .: 8,847,082 1,325,957 7,521,125 1,509,209 Excess (Deficiency) r ■ of Revenues Over (Under) Expenditures 940,987 (59,656) (1,000,643) 4,512 . Other Financing, Uses: Operating transfers out (86;000) (86,000) (29,785) . Excess (Deficiency) of Revenues Revenues Over (Under) . Expenditures and Other Uses 854,987 (145,656).. 1,000,643 (25,273) Fund Balance, July 1 1,077;006 1,677,006 - 1,102,279 . Fund Balance, June 30 $ 1,931,993 $ 931,350 $ (1,000,643) $ 1,077,006 ■ ■ 54 0 ■ 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, 1996 1996 1995 Variance . Favorable Budget.. Actual (Unfavorable) Actual . Revenues: Intergovernmental revenue ■ Debt service P. . nncipal $ - 534,000 $ 209,797 $ (324,203) $ 461,973 t 719,891: ` . 209,797 Excess (Deficiency) of Revenues over (Under) 55 Expenditures: Current: ■ Communitydevelopmen ■ Debt service P. . nncipal $ - 534,000 $ 209,797 $ (324,203) $ 461,973 t 719,891: ` . 209,797 Excess (Deficiency) of Revenues over (Under) 55 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, 1996 1996 1995 Variance Favorable . Budget Actual (Unfavorable) Actual Revenues: Revenue from use of money and property $ $ 7,728 $ Contributions 185,000 185,000 Total Revenues 1.85,000 192,728 7,728 $ 259,897 7,728 259,897 Expenditures: current: Community services ...:. 185,000 116,706 68,294 162,540 Excess.of Revenues`' Over Expenditures 76,022 76,022 97,357 Other Financing Uses: Operating.transfers out . ; . (76,055) Excess of Revenues Over: Expenditures and Other Uses 76,022 76;022 21,302 Fund Balance, July 1 38,602 : ` 38,602. 17,300 Fund Balance, June 30 $ 38,602 $ 114,624 „ $ 76,,022 - $ 38,602 56 0 N 0 57 CITY OF NEWPORT BEACH . Statement of Revenues, Expenditures and Changes In Fund Balance Budget and Actual . Air Quality Management District Special Revenue Fund For the Year Ended June 30, 1996 • 1996 1995 Variance . Favorable Budget ... Actual (Unfavorable) Actual . Revenues: Intergovernmental revenue $ 75,000 $ 96,790 $ .21,790 $ 56,106': ._ ■ Revenue from use of money 5,000 15,975 10;975 8,017 and property Total Revenues 80.000:. : 112,765 32,765 64,122 Expendituresi ■ Current: General government:. 5,760 Community development 46;000 25,738 20,262 31,161 • Total Experidifures 46,000. 25,738 20,262 36,921 Excess of Revenues Over Expenditures. 34,000 `: 87,027 53,027 27,201 Fund: Balance, July 1 : 230,567 230,567 203,366 • Fund Balance, June 30 . $ '.264',567.',-1 317,594 $ .53,027.' $ 230;567 0 N 0 57 M CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance . Budget and Actual Environmental Liability Special Revenue For the Year Ended June 30, 1996 Fund . 1996 1995 Variance Favorable ■ Budget Actual (Unfavorable) Actual Revenues: Licenses, fees and permits $ $ 88,219 $ 88,219 $ . Expenditures: Current: Public Works 194,911 (194,911) . Excess (Deficiency) of Revenues .. Over Expenditures (106,692) (106,692) ■ Fund Balance, July 1 • Fund Balance (Deficit), June 30 $ $ (106,692) $ (106,692) $ 0 58 . id- 0 CAPITAL PROJECTS FUNDS 0 m m 0 0 m 0 0 0 ■ 59 CITY OF NEWPORT BEACH Combining Balance Sheet . All Capital Projects Funds June 30, 1996 ■ 0 60 . Capital Assessment CIOSA . Improvement District Construction Assets • Cash and investments $ ,. $ 212,006 Restricted assets -cash and investments $ 6,576,135 ■ Total Assets $ $ 212,006 $ 6,576,135 Liabilities and Fund Balances Liabilities: Accounts payable and accrued liabilities $ $ 126 $ 775,985 Due to other funds 2,227,346 . Total Liabilities 126 3,003,331 ■ Fund Balances: Reserved for encumbrances 41,122 3,572,804 ■ Unreserved: Designated for special projects 170,758 Unreserved, undesipated ■ Total Fund Balances 211,880 3,572,804 ■ Total Liabilities and Fund Balances $ $ 212,006 $ 6,576,135 0 60 . ■ ■ . Totals 1996 1995 • $ 212,006 $ 1,516,242 6,576,135 ■ $ 6,788,141 $1,516.242 $ 776,111 $ 15,523 . 2,227,346 3,003,457 15,528:. ■ 3,613,926 32,949: 170,758 367770 . M00 000...... 3,784,684 1,500,719 ■ $ 6,788,141 $ 1,516,242 0 0 0 61 M CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Capital Projects Funds For the Year Ended June 30, 1996 ■ Capital Assessment CIOSA . 0 62 Improvement District Construction Revenues: . Intergovernmental revenue Revenue from use of money, and property $ 162,389 . Contributions $ 301,043 4,997,591 Total Revenues 301,043 5,159,980 ■ Expenditures: 489,882 1,587,176 ■ Capital Outlay Excess (Deficiency) of Revenues . Over (Under) Expenditures (188,839) 3,572,804 Other Financing Sources. (Uses): ■ Operating. transfers in Operating transfers out:... $ (1,100,000) ■ Total Other Financing Sources (Uses) (1,100,000) Excess (Deficiency) of . Revenues and Other Sources:Over (Under) . Expenditures and Other Uses (1,100000) (188,839) 3,572,804 Fund Balances, July 1 $ 1,100,000 400;719 := ■ Fund Balances, June 30 $ $: 211,880_ $ 3,572,804 0 62 0 m m 0 m ■ 63 Totals 1996 1995 • $ 233,093 . $ 162,389 14,131 5,298,634 285,674 . 5,461,023 532,898 • 2,077,058 65,409 ■ 3,383,965 467,489.. ■ 234,981 ■ (1,100,000) (701) (1,100,000) 234;280 ■ 2,283,965 701,769 . 1,500,719 798,950 ■ $ 3,784,684 $ 1,500,719 0 m ■ 63 CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance ■ Budget and Actual Capital Improvement Capital Projects Fund For the Year Ended June 30, 1996 ■ 1996 1995 ■ Variance Favorable ■ Budget Actual (Unfavorable) Actual Other Financing Uses: Operating transfers out $ (1,100,000) $ (1,100,000) $ ■ Fund Balance, July 1 1,100,000 1,100,000 $ 1,100,000 • Fund Balance, June 30 $ $ - $ $ 1,100,000 64 . 0 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, 1996 ■ ■ Expenditures Capital Outlay 528,346 489,882 38,46.4: Excess (Deficiency) of Revenues Over (Under) Expenditures (194;753) : (188,839) 5,914 240,3U8? Other Financing Sources: Operating transfers in 234 ?981 Excess (Deficiency) of.Revenues and Other Sources:Over .. (Under) Expendiores; (194,753) (188;839) 5,914 475,289 400,719 5i M 66 ■ CITY OF NEWPORT BEACH Statement of Revenues, Expenditures and Changes in Fund Balance . Budget and Actual CIOSA Construction Capital Projects Fund For the Year Ended June 30, 1996 . 1996 1995 . Variance Favorable . Budget Actual (Unfavorable) Actual Revenues: Revenue from use of money . and property $ 162,389 $ 162,389 $ Contributions 4,997,591 4,997,591 Total Revenues 5,159,980 5,159,980 Expenditures: ■ Capital Outlay $ 71356,871 1,587,176 5,769,695 Excess (Deficiency). of Revenues Over (Under). Expenditures (7,356,871) 3,572,804 10,929,675 Fund Balance, . July 1 Fund Balance, June 30 $ (7,356,871) $ 3,572,804 $ 10,929,675 $ . 66 ■ -.�. ,_- - _ z- �� -.�-_ ■ ENTERPRISE FUNDS 0 0 m Lj 0 0 0 m m 0 67 0 CITY OF NEWPORT BEACH Combining Balance Sheet ■ All Enterprise Funds June 30, 1996 • Cannery Village Assets Parking Water Wastewater . Current Assets: Cash and investments $ 14,906,649 $ 1,976,075 . Accounts receivable and accrued revenues 2,871,203 433,746 Due from other governments 2,504,005 39,297 Allowance for doubtful accounts (2,504,005) (39,297) ■ Inventories of materials and supplies, at cost 44,110 Restricted assets - cash and investments 1,733,358 . Total Current Assets 19,555,320 2,409,821 Fixed Assets: ■ Land $ "1,039,163 2,016,450 Structures 107,471 52,479,354 31,874,177 . Equipment 627,374 43,797 Construction in progress Accumulated depreciation. .(33,196) (22,392,347) (22,136,876) ■ Net Fixed Assets 1;113,438 32,730,831 9,781,098 Total:Assets $ 1,113,438 $ 52286,151 $ 12,190,919 . Liabilities and,Fund Equity ; • Current Liabilities: Accounts payable and accrued liabilities $ 2;962,324 $ 26,909 Accrued payroll' 37,007 :: 12,637 . Due'to other funds $ .: 585, 961 Deposits . 84;878 Accrued interest payable 438,420 Bonds payable - current 845,000'' Total Current Liabilities 585,961 4,367,629 39,546 Noncurrent liabilities: Bonds payable 15,435,000 . Total liabilities 585,961 19,802,629 39,546 Fund Equity: Contributed capital 5;060,494 9,145,593 Retained Earnings 527,477 27,423,028 3,005,780 . Total Fund Equity 527,477 32,483,522 12,151,373 Total Liabilities and Fund Equity $ 1,113,438 $ 52,286,151 $ 12,190,919 68 ■ ■ Totals 460,45E 1996 1995 4,993,136 $ 16,882,724 $ 26,191,705: 3,304,949 3;084;917 2,543,302 2,739,911 . (2,543,302) = (2,739,911) 44,110" 44,110 1,733,358 1,739, 505 21,965,141 31,060,237 3,055,813 3,055,613 84,4510002 66;396,045 671,171. 620,249 4. ;889,033 . (44,562,419) (42;868718). 43,625,367 092222. $ .:2,989,233;: $ 1,796089 49;644 49644'`' 585,961 661,822 84,878 97,843 438,420 460,45E :845,000 820,00( 4,993,136 3,885,85E 15,435,000 `:; 16;280,00( 20,428,136 20;]65;85E 14, 206, 087 13,899,327 30,956,285 29,087,276 45,162,372 42,986,603 $ 65,590,508 $ 63,152,459 M 0 CITY OF NEWPORT BEACH Combining Statement of Revenues, Expenses . and Changes in Retained Earnings All Enterprise Funds For the Year Ended June 30, 1996 . ■ ■ 70 ■ Cannery ■ Village Parking Water Wastewater Operating Revenues: . Charges for services $ 14,719,601 $ 2,132,326 Other — $ 75,861 46,965 48,493 • Total Operating; Revenues 75,861 14,766,566 2,180,819 Operating Expenses: . Purchase of water 8,141,732 Salaries and wages 1,894,872 697,819 Depreciation A,299 1,125,656 720,671 . Professional services 1,140,267 170,732 Maintenance and supplies ' 480,763 310,113 Systems maintenance 960,384 106,123 . Other: 602,010 Total Operating Expenses.. 4,299 14,345,684 2,005,458 ■ Operating Income 71,562 420,882 175,361 . Nonoperating Revenues (Expenses): Intergovernmental revenue,. 23,863 7,247 . Interest income': 1,332,157 108,255 Other income 22,721 12,235 Interest expense (305,274) ■ Bond issuance cost Investment losses • Total lNonoperating Revenues (Expenses) 1,073,4,67.. 127,737 Net Income (loss) 71,562 1,494,349 -.. 303,098 • Retained Earnings, July 1 455,915 25,928,679 2,702,682. Retained Earnings, June 30 $ 527,477 $ 27,423,028 $: 3.005,780 . ■ ■ 70 ■ 0 0 0 0 Totals 71 1996 1995 ■ $ 16,851,927 $ 15,552;410 171,319 217,175 • 17,023,246 15,769,285 • 8,141,732 7,255,987 2,592,691 2,887,010 . 1,850,626 1,475,755 1,31 -0,999 951,485 790,876 687,414 622;580 602,010 651;279 ■ 16,355,4.41 14531;1510 . 667,805 ;1,237,775 . 34'110 79710 1,440,412 1,148,685 34,956 - . (305,274) (350,579) (396,230) (2,739,911) . 1,201,204 (2,258,325) 1,869,009 (1,020550) • 29,087,276 30,107,826 ■ $ 30,956,285 $ 29,087 276 71 0 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Enterprise Funds . For the Year Ended June 30, 1996 Cannery Village . Parking Water Wastewater Cash flows from operating activities Operating income $ 71,562 $ 420,882 $ 175,361 . Adjustments to reconcile operating income. to net cash provided by operating activities: Depreciation 4,299 1,125,656 720,671 Intergovernmental revenue 23,863 7,247 Other revenue 22,721 12,235 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (149,267) (70,765) (Increase) decrease in due from other governments 194,059 2,550 Increase (decrease) in allowance for doubtful accounts (194,059) (2,550) (Increase) decrease in inventories of materials and supplies, at cost' (Increase) decrease in other assets Increase (decrease) in accounts payable . 1,181,567 11,57T:. Increase (decrease) in accrued payroll Increase. (decrease) in due to other funds (75,861) Increase (decrease) in.deposit$ (12,965) Total adjustments . (71,562) 2,191,575 680 965 Net cash provided by operating activities 2,612,457 856,326 Cash flows from. capital and related financing activities: Acquisition of capital assets (12,058,756) (446,689) Principal payment- (820,000) Proceeds from Bond issuance Interestpaid (898,878) ._. Net cash provided by (used far) capital and related financing activities (13,777,634) (446,689) Cash flows from investing activities. Interest on investments 1,332,157 108,255 Loss on investments Net cash provided by (used for) investing activities 1,332,157 .- 108,255 Net increase (decrease) in cash and cash equivalents (9,833,020) 517,892 Cash and cash equivalents; July 1 26,473,027 1,458,183 Cash and cash equivalents, June 30 = $ $ 16,640,007 $ 1,976,075 Noncash Activities: Contributed Capital $ $ 306,760 $ - Capitalized interest $ $ 571,566 $ - 72 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Totals 1996 1995 $ 667,805 $ 1,237,775 1,850,626 31,110 34,956 (220,032) 196,609 (196,609) 1,193,144 (75,861) (12,965) 2,800,978' 3;466,783 (12,505,445) (820;006) (898,878) (14,224,323) 1;440,412 1,475,755 79,710 (307,875) (2,739,911) 2,739,911 10 ;082.. 81 463;355 13,155 (1.73,751) (6;137) 1,554;375 2,792;150. (4,014,045) 18;763;770` (350,579) 12,339,146 1,148,685 (2,739;911) 0 73 1,440,412 , (1,591 -,226) ■ (9,315,128) .13,540,070., 27,931,210 14,391,140 ■ $ 18,616,082 $ 27,931,210? . $ 306,760 $ 60,580 $ 571,566 $ 460,458 0 73 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Internal Service Funds (41 qM1�y 0 INTERNAL SERVICE FUNDS 0 0 m 0 0 0 n 0 m 0 . 75 CITY OF NEWPORT BEACH Combining Balance Sheet All Internal Service Funds June 30, 1996 Fixed Assets Equipment Insurance 8,004,775 Totals 6,203,567 Assets Reserve Equipment 1996 1995 Current Assets: Net Fixed Assets -:. 4,845;927 4,845,927 Cash and investments $ 90,769 $ 888,294 $ 979,063 $ 816,318 Accrued revenue $ 5,393,983 8,370 8,370 49,934 Deposits with other agencies 17,227,030 1,069,356 18,296,386 631,284 Inventories of materials and Accounts payable and accrued' liabilities $ :. supplies, at cost $ 231,851 146,348 146,348 154,054 Total Current Assets 90,769 1,043,012 1,133,781 1,651,590 Fixed Assets Equipment 8,004,775 8,004,775 6,203,567 Accumulated depreciation 3,598,677 (3,158,848) (3,158,848) (2,461;174) General liability Net Fixed Assets -:. 4,845;927 4,845,927 3,742;393 6,484,648 Total Assets $. 90,769 $ 5,888,939 , $ 5,979,708 $ 5,393,983 543 }174 12,239,555 Liabilities and Fund Equity .. Total Liabilities 17,227,030 1,069,356 18,296,386 Current Liabilities: Fund Equity: Accounts payable and accrued' liabilities $ :. ..609;112` $ 231,851 $ , 840,963 $ 192,879, Accrued payroll 101,372. , 16,990 118,362 118,362 Due to other funds '1;270,165: (17,136,261) 1,270,165 13,329 Capital leases -- current 277;341 277,341. 199,273 Workers' compensation— current 2;150,000:.. 2,150,000 1,850,060 Generalliability-- current 650,000 650,000 500;000 Compensated absences- current 750,000:. 750,000 700;000 Total Current Liabilities ` 5,530,649 526;182 61056,831 3,573,843 Noncurrent Liabilities Capital Leases 543;174 543,174 525,378 Workers' compensation' 3,598,677 3;598,677. 3,568,315 General liability 1,613, 056 1,613, 056. 3, 738, 056 Compensated absences 6,484,648 6,484;648`. 6,606,642 Total Noncurrent Liabilities 11:;696,381 543 }174 12,239,555 14,438,391 Total Liabilities 17,227,030 1,069,356 18,296,386 18,012,234 Fund Equity: Contributed Capital 4,097,648 4,097,648 4,097,648 Retained Earnings (Accumulated Deficit) (17,136,261) 721,935 (16,414,326) (16,715,899) Total Fund Equity (17,136,261) 4,819,583 (12,316,678) (12,618,251) Total Liabilities and Fund Equity $ 90,769 $ 5,888,939 $ 5,979,708 $ 5,393,983 W; ■ 0 CITY OF NEWPORT BEACH . Combining Statement of Revenues, Expenses and Changes in Retained Earnings All Internal Service Funds . For the Year Ended June 30, 1996 ■ ■ ■ ■ ■ Insurance Reserve Equipment Operating Revenues; Charges for services $ 3,658,847 $ 3,561,868 Other 61093 5,130 Total Operating Revenues 3,664,940 3,566,998 O ratan Ex arises: Totals 1996 1995 5 $ 5,872,717 3 2,694,066 pe 9 p 1,373,797 Operating transfers out Salaries and wages > (2540t3Q) '' 935,387+++ 935,387 (250;000) Depreciation 1,011,424 1,008,235 1,008,235 1; Professional services 355,877 55,282 55,282 Maintenance and supplies Deficit), July 1 150,525 '1501525 (17,071,776) Fleet parts and supplies Retained Earnings (Accumulated 404,069 404,069 Workers' compensation 2,473;017 $ (16,414,326) $ 2,473;017 3 Claims and judgments 456,599 4561599 Compensated absences 1,337;344 1,337;344 1 Total Operating Expenses 41266960 2,553,49& 6,820,458 1" '9 Operating Income (Lass), (602,020) 1;013,500 411,480 Nonoperating Revenues(Ezpenses) :' Intergovern mental revenue . 12:953+ 12,953 Interest income Gain on sale of fixed assets 164:854.' -16,4,854 Interest expense. (37,714) (37,714) Total Nonoperating Revenues 140 093 140,093 Income (Loss) Before Operating Transfers (602.020) 151. 593 551,573 Operafing transfers ,572 Operating transfers in 1,373,797 Operating transfers out (250,060 > (2540t3Q) '' (362,373) Total operating transfers (250;000) (250,000) 1,011,424 Net Income (Loss) (602,020) 903,593 301,573 355,877 Retained Earnings (Accumulated Deficit), July 1 (16,534,241) (181,658) (16,715,899) (17,071,776) Retained Earnings (Accumulated Deficit), June 30 $ (17,136,261) $ 721,935 $ (16,414,326) $ (16,715,899) 77 CITY OF NEWPORT BEACH Combining Statement of Cash Flows - All Internal Service Funds . For the Year Ended June 30, 1996 ,I J 78 0 ■ Insurance Reserve Equipment . Cash flows from operating activities Operating income (loss) $ (602,020) $ 1,013,500 Adjustments to reconcile operating income (loss) ■ to net cash provided by (used for) operating activities: Depreciation 1,008,235 Intergovernmental revenue 12,953 . Changes in operating assets and liabilities: ( Increase) decrease in accrued revenue 29,599 11,965 ■ (Increase) decrease in deposits with other agencies 631,284 (Increase) decrease in inventories of materials' and supplies, at cost 7,706 ■ Increase(decrease)in accounts payable - 491,702 156,382 Increase (decrease) in accrued payroll Increase (decrease) in due to other funds .. 1,256,836 ■ Increase (decrease): in workers' compensation 330,362 Increase (decrease) in general. liability (1,975,000) Increase (decrease) in` compensated absences (71,994) . Total Adjustments. 1,197,241 Net cash provided by (used for ). operating activities 90,769 2,210,741 ■ Cash flows from noncapital financing activities: Operating transfers from other funds Operating transfers to other,funds (250,000) . Net cash provided by (used for) noncapital financing activities (250,000) . Cash flows from capital and:related financing activities: Acquisition of capital assets (1;805,169) ■ Principal payment (291,728) Proceeds from sale of capital assets 245,846 Interest paid (37,714) . Net cash used for capital and related financing activities (1,888,765).. ■ Net increase (decrease) in cash and cash equivalents 90,769 71,976 . Cash and cash equivalents, July 1 816,318 Cash and cash equivalents, June 30 $ 90,769 $ 888,294 ■ Noncash Activities: Contributed capital $ - $ - • Acquisition of equipment by capital leases $ - $ 387,592 ,I J 78 0 0 0 0 79 Totals ■ 1996 1995 $ 411,480 $ (751,291) 1,008,235 1,387,572 . 12,953 29,997 . 41,564 (20,335) 631,284 ■ 7,706 13,156 648,084 (60,535) 105,962 . 1,256,836 330,362 (21429):.:: (1,975,000) (3,085,340):. ■ (71,994) 213 416.. 1,890,030 (1,424;207). 2,301,510 (2,175,49$) .. 1 373 797 `.. . (250,000) (362,3D):' ' . (250,000) 1,011,424 ■ (1,805,169) (844,374) (291,728) (212,895) ■ 245,846 60,240 (37,714) (24,092) ■ (1,888,765) (1,021,121) . 162,745 (2,185,195) 816,318 3,001,513 ■ $ 979,063 $ 816,318 • $ 387,592 $ 453,772 0 79 I m AGENCYFUNDS 0 0 0 0 81 CITY OF NEWPORT BEACH Combining Balance Sheet All Agency Funds June 30, 1996 82 ■ Deferred Special Special Business Compensation Assessment Deposit Improv. Dist. Fund Fund Fund Fund Assets: Cash and investments $ 25,215,057 $ 2,590,989 $'1,352,958 $ 34,099 Restricted assets - cash and investments 756,141 Total Assets $ 25,215,057. -` $ 3,347,130 $- .1,352,958 $ 34,099 Liabilities: Due to other funds $ 101,690 Due to bondholders $ 3,347,130 Due,to others:...: $::1,352;958 $ 34,099 Deferred compensation. "= $ 25;113,367 TotalLi4bilities. $ 25,21:5,057. ..,$. 3;347,130 $,1,352 ;958 $ 34,099'- 82 ■ Totals 1996 1995 $ 29,193,103 $ 22,906,164 756,141 $ 29,949,244 $ 22,906,164 $ 101,690 3,347,130 $ 299,297 1,387,057 539,177 25,113,367 22,067,690 $ 29,949,244 $ 22,906,164 83 CITY OF NEWPORT BEACH Combining Statement of Changes in Assets and Liabilities All Agency Funds For the Year Ended June 30, 1996 Balance Balance June 30, 1995 Additions Deductions June 30, 1996 Deferred Compensation: Assets Due to other funds Due to bondholders $ 299,297 Due to others 539,177 Cash and investments $ 22,067,690 .`:: $ 3,474;105 $ 1(326,738)-:. $ 25,215,057 Liabilities Due to other funds $ 101,690- $ 101,690 Deferred compensation $ 22,067,690.:: $ 3,372,415 = $ (326,738) -' $ 25,113,367. Total Liabilities -$ 22,067,690 i -$. 3,474,105 $ (326,738).,...$: 25,215,057 Special Assessment:, - _ . Assets . Cash and investments $ 299,297: ` $ 3,067,946 $ (796,254)',, $ 2,590,989 Restricted assets - rash and investments - :- 756,141 756,141 Total Assets $ -�:' 299,297., $ 3,644,087 �$ '(796,254)::;;$ 3,347,130 Liabilities Due to bondholders $ .; ,.299,297. $ 3,844,087 $ (796 254)::1 $ 3;347,130 Special Deposit: 'Assets 'Cash and investments $. 539,1.77 $ 1 191;855 $ -(378 0741 $ 1,352.;958 Liabilities Due to others. •$� ..".:.5. 39177 $ 1,191;855 $1(378074)''$ 1,352;958 Businesslmprovement District':. Assets - Cash and investments $ -• -. - $ 77,871 $ '-: (43,772) $ 34;099 Liabilities Due to others $ - $ '77,871 $" (43772)`$ '34,099 Totals - All Agency Funds Assets Cash and investments $ 22,906;164 $ 7,831,777 $:(1. 1544,838) $ 29,193;103 Restricted assets - cash and investments 7$6;1:41 756141 Total Assets $ 22,906,164 $ 8,587;91$ $ (:1,544838) 29,949,244 Liabilities Due to other funds Due to bondholders $ 299,297 Due to others 539,177 Deferred compensation 22,067,690 Total Liabilities $ 22,906,164 $ 101,690 $ 101,690 3,844,087 $ (796,254) 3,347,130 1,269,726 (421,846) 1,387,057 3,372,415 (326,738) 25,113,367 $ 8,587,918 $ (1,544,838) $ 29,949,244 84 ■ ■ J y 0 ACCOUNT GROUPS 0 0 m 0 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 85 CITY OF NEWPORT BEACH Comparative Schedule of General Fixed Assets By Source June 30, 1996 General Fixed Assets 1996 $ 24,580,998::; .38',911,208 10,516,968 $ 74,009,174 $ 74,009,174. 1995 $ 24,580,998 38,421,877 10,349,188 $ 73,352,063 $ 73,352,063 Total Investment in Fixed Assets' $ .74,009,174" $ 73;352,063 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ CITY OF NEWPORT BEACH General Long -Term Debt Account Group Comparative Schedule of General Long -Term Debt June 30, 1996 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 87 1996 1995 $ 579,731 $ 561,193 9,941,342 9,510,396 $ 10,090,127 $ 10,502,535 $ 7,090,000 $ 7,235,000 81,394 248,296 9 91 R 731 3 n19.239 1.1.1 ■ ■ ■ ■ Statistical Section ■ b ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ AMIA 1 1 0 CITY OF NEWPORT BEACH Miscellaneous Statistics ■ June 30, 1996 General Infonmation: iDate of Incorportation ................................................. ............................... ...........................1906 Form of Government ................................ ............................... .......................Council - Manager Population: Permanent ............... ... ................69,069 . . Summer .................................:...... . . . . . ...... . ............. .............2 . ....... ...... ..................100,000 Tourist ....................................... ............................... ................ o 1001000 per day Housing units.......... ........ ..... Factor .................... ............................... ....35,631 Occupancy per dwelling unit.. .................. ............................... . ::.::.2.167 . Area: Square Miles Acres Land............ ....................:.......... ..........................14.01 ............................ ........................ 9,024.0 Bay................................ .: ... ...... .....,......................... 2. 04....................... .............................1; 305.6 Ocean...:....................:............ ............................... 20.00 ...................... ............................12, 800:0 Total ....:........ ...........:...... :.. ........... ...................,:.....36.05 ............................. ......:.....:........23,129:6. Population Density:.. Per square mile; .................. .............. ....................... ....................... .......:.4,898.5;. Peracre .................:........:..:.............:.......:....................... ............................... ..........................7.65. Recreational Area: Acres' Ocean Water ..................:......:.. .... ......... ......... ......:,.:...... .. ....::...12,800 HarborWaters ................................... :..:: ............................................................................... 1,306 .Parks.- ..... .......... ........: ......... ......... : ...................... Beaches .............:..... ... . ............................... ...... ....................,..224 Total .......................::. ..... . ......... ....... .......................14,465 ■ .......... Water Frontage: Miles ■ Ocean ........................ .......... ...................................... ..................:.....:...... .....::.....7.21 Harbor .................................................. .............. ...................................................... ...::......... 35.94 Total .............. . ......................... :................................................... ........ .................. ..... ::..........43.15 Newport Harbor: ■ Boats ......................... ....... .......... ........................ ............. ..........................9,000 Residential................................ ........................................................................................... 1,230 Commercial Slips and Side Ties: ::.::..::::.::.........::. ............................... ..........................2,119 . Bay Moorings.. ...................................................................................................................... 1,221 Public Safety: Police Fire & Marine Numberof Stations .............................................. 1..................................... ............................... 6 Number of Personnel ......... ............................... 206.. ............................... ............................120 ■ 89 N (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 • 90 ■ Governmental Revenues by Source (1) (Last Ten Fiscal Years) S Fines, Licences, Inter- Charges Forfeitures Revenue from ■ Fiscal Fees and governmental for and Use of Money Year Taxes Permits Revenue Services Penalties and Property Other Total ■ 1986 -1987 $ 31,663,304 $ 2,387,411 $ 7,132,740:; S 3,963,0611: $ 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 9;391,781 . 3,649,089 66,447,801 1989-1990 38,389,789 - 2,653,730 16,537,544 .::, 41899,970' 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 - 9,611;524 -.. -1992 40,466,D2 1,903,044: _.10,819,561 -'_- 4;609,812 3,053,246 2,722,037 73,185,456 1992 -1993 - 38,471,775- -- 1,795,238 1,621643 ,-- X4',703,200 2,582,969 9,469,060 1,243,093: 65,886,978 `-- . 1993-1994:,. .' 39,809;139.1 1,948,855..- 8,993;289 .5,077,369 2,706,194 :8,660,599 .2;1.39567 69;335,012 1994 -1995 39,7191830 21981186 .`10,704,000 :. 5,109,513 3,156,530 9,676,426. 1,300,722 71865,207 . 19951996 .` 42,8531480 3,052,113 ' ..'8,315,543. 6,278 ;416 ..2,855;063 11,000,272 :, 8,14Q,371 82;695;258 (1) Includes General, Special Revenue, Debt Service and Capital Projects funds. ■ Governmental `Expenditures by Function (1) (L:ast.Ten Fiscal Years) , ■ Ftscal .: General:. -PAlic Public Community Community Capital Debt Year., Government Safety Works Developttient Services Out Service Total . 1986-19V'$,,, -:- 5,188,407 $ 20,371 -,613 13,668,069 $ 447,248:. . $ 5,026,323 $ 12,522,935 $ 5�, 224,595 1987 -1988 078,412 21,845,493. 13043,460 :' 450,234 5,234,304 16,657,535 62;109,438 1988 -1989 5,248,695 22,014,671 -. -.- 13,870,347 1,603,57I: 5"99,6 , 335 ' .. 11,175,926 ' '<59,909,595 1989.1990 5365,259: 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 2,937,016 �:.. ■ -1992 30;987,412 12,372,598 3,4119623 8,859,639 16,034,094 74,612,372 1992 -1993 4,359,857 31,209;589 -12,7791215 3,636,092 8,520,758 12;220,226$ 1,155,407 (3) 73,881,144 1 • 1993 -1994 4,607,009 32,330,338'1- 15,018,898, 3,406,712,:; 5310 7-52 13,605,703 1,175,175 76,054,587 1994 -1995 5,505,610 33,389,922 14,661,343 ' 3,336,672 5,857,959 8,523,773 1,550,294 72,825,573 . 1995 -1996 5,442,862 34,571,273 14,779,614 2,952,247 5,916,194 11,291,759 1,069,045 76,022,994 (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 • 90 ■ . $90 $80 • $70 . $60 Y A ■ A $50 0 $40 330 $20 $111 . $o ■ Governmental Revenues and Expenditures. 1996 -87 1987 -88 198"9 1989 -90 199(1.91 1.991 -92 1992 -93 1993.94 1994 -95 1995-96 Governmental Revenues by Source (Fiscal Year 1995 -90 51 X, ■ Taxes WN ■i.icenses & Pernilts ■lntcrpovernmental ■Charges [or Services . ■1'inesR l'orfcit'tires Elise of Aloney & Property 13%, ■ vliscetlaneous 3'ib % 8CA 103; Governmental Expenditures by Function (Fiscal Year 1995 -96) 7'Y6- 1 iGeneral Government ■Public Safety 15% ■Public Works ® community Development ■ Culture and Recreation ■ capital Outlay ■ Debt Service Y%V 19% 91 • Asssessed and Estimated Actual Value of Taxable Property (Last Ten Fiscal Years) Total ■ Fiscal Secured Public Unsecured Assessed & Estimated Year Valuation Utility Valuation Valuation . 1986 -1987 $ 7,090,960,057 $ 78,565,100 $ 649,193,026 $ 7,818,718,183 1987 -1988 7,772,854,712 80,739,100 841,558,697 8,695,152,509 . 1988 -1989 8,463,563,058 575,2201(1) :689,901,568 9,154,039,846 1989 -1990 9,120,361;600': 575,220 (1) 776,287 ;650 9,897,224,470 . 1990 -1991 10;013,611,946 575,220 (1) 894,906,739 - .10,909,093,905 1991 -1992 10,583,498,762 354,820 :.(1) 1,010,3171328. 11`,59.4,170,910 1992. 1993 11,192,809,652 354,820 (1) 893,375,850 12 076,539,722 . 1993 -1994 11,179,271,032 354,820 (1) 865,424,090 12,045 049,9 42 1994 -1995 11,178,202,789,: 354,820 (1) 686,344,530 11 864,902;139 :. . 1995 -1996 11;354,688;863 354,820 (1) 754;122,920 12,109;166,603 (1) Effective FY 1988-89, public utility values have decreased due td AB2890 and AB454 transferring the public utility values to a county -wide tax rate area. Secured. Property Tax Levies and; Collections ■ :(Last Ten Fiscal Years) Total , Total Percent Delinquent .'- % of Total Tas . Fiscal Current_': - Current of Levy Tax Total Collections.° Year Levy. Collections',', Collected Collecuons `., , Collections Total.Levy' • 1986-1987 $ 14,395;151 $ - 13,783,508 95.75% fi ,:465,7$0. %14,249,288 9,$.99% 1987 -1988, 15,942,564 15,311519 96,04% 493 507 ;15,805,026 99.14% . 1988 -1989 17,308,591 16,678;689 96;36% „'' 432,523 : 17,111,212 98.86% 1989 -1990 18,962,055 1`8,119,326 95:56% 392,912 18;512,238 97.63% ■ 1990 -1991 21,031,117 19,863,098 94:45% 433,571 '` 20,296,669 .' 96.51% 1991 -1992 21,516,647 21,255177 98.78% 504,000 21 759,177 101.13% ■ 1992 -1993 18,859,8891 (1);; . 18,508,590 536 760 " 19 396,649 102.85% 17,131159: °h 1993 -1994 17,870,028 (2) >.:. ,;95;87% :526025 17,657,184 98.81 1994 -1995 17,730,237 (2) 17,105,142,(3) W47%% 409,355 (3) 17,514,497 98.78% 1995 -1996 17,843,233 (2) 17 432,840 97.70% 368,913 17,801,753 99.77% (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. . (3) Funds were withheld due to the Orange County Bankruptcy. Source: County of Orange Auditor - Controller's Office . 92 $12,000 • S1u,5oo ^ 4 r. c Q $9.000 ■° $7,500 5 . C w $6,11110 $4,5011 s i t $3,000 • $1,500 • So ■ $25,000 $20,000 4 Q . o $15,1100 S v. . o . O $111,1100 7. S $SAOo • So Total Assessed Valuation / Property Tax Collections (Last Ten Lriscal. Years) $25,000 $20,1100 ^ L 9 Q h $15,000 A $ "10,000 -. S r. $5,000 $50o v ti k 7 Q $400 0 $300 = a C $200 `c $coil So 1986 -87 1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 1992 -93 1993.94 1994 -95 1995 -96 93 Construction Activity (Last Ten Fiscal Years) Fiscal Building Permits Percentage Estimated Percentage Year Issued Change Valuation Change 1986 -1987 1987 -1988 1988 -1989 1989 -1990 9,859 19.32% :. 180,434,990 9,337 5.29% 120,512,114 91228 -117% 8,800 -4.64% 7,600 - 13.64% 7,268. , - 74:37% 194,655,287 :118,087,775 116,5010,000 0.89% - 33.21% 61.52% 3933% 77,413,996 29.94% 71251 ::: -0.23% 72,170,274 - 6.77% 6,986 -3.66% 70,339,522 _ 2.54% 7,672 9.82% 79,691,510 1130% 8,302 '. 8.20% ; 145,760,839 8.30% Building:and Planning Department. 4;331,692 ' 1992 4,3S9,067 x1993 ; 4;582,022 Bank Deposits 4;193,643 (Last Ten Fiscal Years) 4,219,849 S (thousands) Calendar Year ;Bank;Deposits 'i986 - -' 4,702,801 1987 6,011;254 1988 > : 6,529 897 1989. 6,631;511 1990 6,971,424 1991:, 4;331,692 ' 1992 4,3S9,067 x1993 ; 4;582,022 1994' 4;193,643 1995 4,219,849 1996 data for bank deposits will not be available until 12 -31 -96 Source: The Findley Reports on California Financial Insitutions 94 ■ ■ e ■ ■ ■ ■ Estimated Value of Construction / Number of Building Permits (last Ten Fiscal. Years) ■ $7.000 ■ . $200 55.000 $1811 ■ $8,000 $160 $3.0110 n $140 +� $120 i; $100 'a $80 r $60 V $40 • $20 $0 Estimated Value of Construction / Number of Building Permits (last Ten Fiscal. Years) ■ $7.000 ■ S6.000 55.000 ■ $8,000 $3.0110 :z.non $1,uno 986 -87 1987 -88 198 &89 1.989-90. 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95. 1995-9E Bank Deposits (Millions of Dollars) 19x6 198 1786 1989 1990 1991 1992 1993 1994 1995 95 10,000 9.000 8,000 7,000 6,000 fi a 5,000 c 4,000 z 3.000 2,000 ;1,000 Property Tax Rates -- Direct and Overlapping Governments Compdtat on of Legal Debt;_Margin (Per $100 of Assessed Value) Total assessed yalue of all real &personal property $12,109,166,603. (1);,' (Last Ten Fiscal Yeats) Debt limit percentage 15% • ■ $1 816,374;990 Amount of debt applicable to debt lima $7,090,000 Legal debt margin $1,809,284,990 . Fiscal School County County Flood County, City Metro Water market value. Year Districts Improvement Control & School Levy District Total 1986 -1987 $ 0.01186 $ 0.000271:141:1, 0.00142 $ 1.00000 $ 0.01480 $ 1.02835 ■ 1987 -1988 0.00916 0.00022 0.00117 1.00000 0.01120 1.02175 1988 -1989 0.00852 0.00022 0.00111 1.00000 0.01100 1.02085 . 1989 -1990 0.00826 0.00017 0.00093 1.00000 0.01210 ,.;., 1.02146 1990 -1991 0.00252 0.00016. 0.00082 '1:00000 ' 0.00970 1.01320 . 1991 -1992 _ 0.00231 0.00012 0:00063 1.00000 0.00744 1.01050 1992 71993 0.00239, - 0.00013 0.00065 1.00000 0.01171 1,01488 1901994 0.00000 0.00011 0:00067 1.00000 0.00326 1.66404. . 19944995 0.00000.- 0.00013. 0:00037 1.00000 0,00881 1.0093f: 1995 -1996 0 00000 A:00012 0.00000 1.00000 0.00890 1.00902 `. ■ Source:, County o€ Orattge.AucLtor- Controller's Office Compdtat on of Legal Debt;_Margin June 30;:.1996 Total assessed yalue of all real &personal property $12,109,166,603. (1);,' Debt limit percentage 15% • Total debt limit $1 816,374;990 Amount of debt applicable to debt lima $7,090,000 Legal debt margin $1,809,284,990 . (1) The fiscal year 1996 debt limit is based on assessed value being equivalent to 100% of market value. ■ Source: City Finance Department 96 t CITY OF NEWPORT BEACH Principal Taxpayers June 30, 1996 Property Tax (listed alphabetically) Principal Taxpayer jype of Business Aetna.Life Insurance Company Life Insurance :Downey Savings.,& Loan Financial HMH. Properties, Inc. Real Estate Hughes Aircraft Company . .Aerospace Irvine.Compariy. Real Estate Irvine.. Apartment.Communities Real.Estate . Koll Center Office Buildings . Park Newport land Ltd. Real Estate Rockwell International Corp. :Aerospace Security Trust Financial Source: California Municipal Statistics, Inc. 97 1995 -96 Assessed. Percent Valuatioh fo Total $38,060,508 0.34% $42,388,247. 0.37% $66,987,885 0.59% $38,033,216 0.60% $766,728,254 6.75% $158,290,709 1.39% $96;896,1.03 0.85% $122;010,813 ' `0.310/ "'. . _ $331,153,939 $80,1456,551 0.71%, Schedule of Direct and Overlapping Bonded Debt • June 30, 1996 ■ STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/96: $0 . Source: California Municipal Statistics, Inc. 98 • 1995.96 Assessed Valuation: $11,901,535,380 (after deducting $207,631,223 redevelopment incremental valuation) DIRECT AND OVERLAPPING BONDED DEBT:. % Applicable Debt 6/30/96 Orange County 7.489% $29,582 Orange County General Fund Obligations -, 7.489 88,301,226 Orange County Pension Obligations 7.489 24,203,349 . Orange_ County Teeter Plan. Obligations .. 7.489 .'.11,607,950 Orange County Transit District Authority- ` - _- - +. , 7.489 1,580 179 Orange County Sanitation Districts N5,6 &'7- Certificates of Participation 6.488- 94:075 28,189,999 Orange County Water District Certificates of Participation 1.339 2,759,076 - ,Metropolitan Water District -' - - ' :'. 1.482 8,964;544 . Municipal Water District of Orange County Water Facilities Corporation - 0.046 37,975. Coast Community College District Certificates of Participation 26.442 5,395,224 Saddleback Community College District Certificates of Participation 0.905 416,572 . Rancho Santiago Community College District Certificates of Participation 4.071 24,630 Newport Mesa Unified 5600l District. Community Facilities District N90-i 35.070 5,030,792 Santa Ana Umfied.Sehool District and Certificates of Participation 9,468 11922,004 Irvine Unified School. District 0.004 ' 649 Irvine Ranch Water;District Certificates of Participation and Improvement Districts 0.020. 14.648 :3,466,439 City of Newport $each Certificates of Participation :.: City of 100. 7,090,000 ■ Newport Beach Special;Improvement District No. 95 -1 100:000 7,500,000 City of Newpci t Beach 1915 AcrBonds ,. 100. .. 2;372,132 , • TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT' ' $198,890,322 Less: Orange County Transit Distria'Amhority (80 %self - supporting) 1,264¢43 .: -- Orange County Water District Certificates of Participation (16 6 self supporting) 2,73614I'0 Municipal Water District-of Orange County Water Facilities ■ ;Corporation (10001i self - supporting)_ _- - 37,975 TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT _ '$194,851,794 ■ (1) Excludes tax and revenue anticipation notes, revenue mortgage revenue. tax allocation bonds and non- bonded,capital lease obligations; Ratios to Assessed Valuation: . Direct Debt 0.06% Total Gross Debt 1.67°% Total Net Debt 1.64% . STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/96: $0 . Source: California Municipal Statistics, Inc. 98 Revenue Bond Coverage (Last Ten Fiscal Years) (3) Net Revenue . Fiscal Gross Operating Available for Debt Service Requirements Year Revenues (1) Expenses (2) Debt Service Principal Interest Total Coverage 1994 -1995 $ 14,817,854 $ 11,471,118 $ 3,346,736 $ $ 460,458 $ 460,458 7.27 ■ 1995 -1996 16,145,307 13,226;028 2,925;279 820,000 438,420 1,258,420 2.32 (1) Total revenues includes interest and intergovernmental revenues. . (2) Total operating expense exclusive of depreciation. (3) No revenue bonds were issued prior to fiscal year 1994 -95. ■ ■ ■ 4.61 100 r r r ■ r r r ■ ■ r r ■ ■ ■ ■ r