HomeMy WebLinkAboutFiscal Year 1996-97 Financial Statement■
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City of
Newport Beach
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California
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P,
Comprehensive Annual Financial Report
Year Ended June 30, 1997
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Comprehensive Annual Financial Report
For the Year Ended June 30,1997
Prepared by the Administrative Services Department
Dennis C. Danner, Director
Introductory Section
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CITY OF NEWPORT BEACH
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Comprehensive Annual Financial Report
Year Ended June 30, 1997
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TABLE OF CONTENTS
■
INTRODUCTORY SECTION
(Unaudited)
■
Table of Contents ........................................... .... .......................................... .............................
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Letterof Transmittal ................................................................................. ...............................
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GFOA Certificate of Achievement for Excellence in Financial Reporting .... ..........................xviii
CSMFO Certificate of Award for Outstanding Financial Reporting ......... ...............................
xix
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List of City Officials .................................................................................. ...............................
xx
OrganizationChart ................................................................................. ...............................
xxi
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FINANCIAL SECTION
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Independent Auditors' Report ............................................................... ...............................
1
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General Purpose Financial Statements
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Combined Balance Sheet - All Fund Types and Account Groups ....... ...............................
4
Combined Statement of Revenues, Expenditures and Changes
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in Fund Balances - All Governmental Fund Types ....................... ...............................
6
Combined Statement of Revenues, Expenditures and Changes
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in Fund Balances - Budget and Actual - All Governmental Fund Types .......................
8
Combined Statement of Revenues, Expenses and Changes
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in Retained Earnings - All Proprietary Fund Types ........................ .............................12
Combined Statement of Cash Flows - All Proprietary Fund Types ...... .............................14
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Notes to General Purpose Financial Statements .................................. .............................17
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Supplementary Information
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General Fund:
Comparative Balance Sheets .............................................................. .............................43
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Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual ............................................. .............................44
■ Special Revenue Funds:
■ Combining Balance Sheet ................................................................... .............................46
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......... 48
■ Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual:
■ • State Gas Tax Fund ................................................................. .............................50
• Asset Forfeiture Fund .............................................................. .............................51
■ • Tide and Submerged Land Fund .............................................. .............................52
• Contributions Fund ................................................................... .............................53
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• Circulation and Transportation Fund ........................................ .............................54
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• Building Excise Tax Fund ......................................................... .............................55
• Combined Transportation Fund ............................................... .............................56
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• Community Development Block Grant Fund ............................ .............................57
• Ackerman Donation Fund ........................................................ .............................58
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• Air Quality Management District Fund.. ........................................... .....................
59
• Supplemental Law Enforcement .............................................. .............................60
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Capital Projects Funds:
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CombiningBalance Sheet ...................................................................... .............................62
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............
63
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Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual:
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• Assessment District Fund .............................................................. .............................64
• CIOSA Construction ...................................................................... .............................65
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Enterprise Funds:
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CombiningBalance Sheet ...................................................................... .............................68
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Combining Statement of Revenues, Expenses and Changes in Retained Earnings ............
70
Combining Statement of Cash Flows ..................................................... .............................72
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Internal Service Funds:
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CombiningBalance Sheet ....................................................................... ............................76.
Combining Statement of Revenues, Expenses and Changes in Retained Earnings ............
17
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Combining Statement of Cash Flows ..................................................... .............................78
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Agency Funds:
CombiningBalance Sheet ...................................................................... .............................82
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Combining Statement of Changes in Assets and Liabilities ..................... ............................84.
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Account Groups:
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General Fixed Asset Account Group:
Comparative Schedule of General Fixed Assets ................................. .............................86
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General Long -Term Debt Account Group:
Comparative Schedule of General Long -Term Debt ............................ .............................87
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STATISTICAL SECTION (Unaudited)
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Miscellaneous Statistics ........................................................................... .............................89
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Governmental Revenues by Source, Last Ten Fiscal Years ...................... .............................90
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Governmental Expenditures by Function, Last Ten Fiscal Years .............. .............................90
Assessed and Estimated Actual Values of Taxable Property, Last Ten Fiscal Years ............92
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Secured Property Tax Levies and Collections, Last Ten Fiscal Years ....... .............................92
Construction Activity, Last Ten Fiscal Years .............................................. .............................94
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Bank Deposits, Last Ten Fiscal Years ....................................................... .............................94
Property Tax Rates, Direct and Overlapping Governments, Last Ten Fiscal Years ................96
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Computation of Legal Debt Margin .......................................................... ...............................
96
Principal Property Taxpayers as of June 30, 1997 .................................... .............................97
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Schedule of Direct and Overlapping Bonded Debt .................................... .............................98
Revenue Bond Coverage, Last Ten Fiscal Years ...................................... .............................99
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CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
November 24, 1997
■
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, 1997 is hereby submitted, as mandated by both local ordinances and
■ state statutes. These ordinances and statutes require that the City of Newport Beach
issue annually a report on its financial position and activity, and that this report be
■ audited by an independent firm of certified public accountants. Responsibility for the
accuracy, completeness and fairness of the data presented, including all disclosures,
■ rests with management. We believe the information presented is accurate in all
material aspects, and that it is reported in a manner designed to fairly present the
■ financial position and results of operations of the various funds, account groups, and
■ component units of the City of Newport Beach. All disclosures necessary to enable
the reader to gain an understanding of the City's financial activities have been
■ included.
■ This report is presented in three sections. The Introductory Section, which is
■ unaudited, contains the table of contents, the transmittal letter, an organization chart of
the City, and a listing of the City's principal elected and appointed officials. The
■ Financial Section consists of the independent auditors' report, the general purpose
financial statements, notes to the financial statements, and the combining and
■ individual fund and account group financial statements and schedules. The Statistical
Section, which is unaudited, contains selected financial and demographic
■ information, generally presented on a multi -year basis.
■ The City provides a full range of services to its residents and visitors. Resources
■ used in supplying City services and maintaining operations are classified in three
general character groupings: Current, Capital, and Debt Service. Simply stated,
■ Current expenditures should be presumed to benefit the current fiscal period; Capital
■ expenditures should be presumed to benefit the current and future fiscal periods; and
Debt Service expenditures should be presumed to benefit past, current, and future
■ fiscal periods.
■ The City utilizes more specific categories to classify expenditures by the function of the
services the City provides, as follows:
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■ General Government: City Council, City Manager, City Attorney, City Clerk, and
Administrative Services.
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Public Safety: Police, Fire, Paramedic, Disaster Assistance, and Marine Safety.
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Public Works: Engineering, Construction, and Maintenance of public streets,
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highways, buildings, parks, and infrastructure; as well as fleet maintenance and
sanitation.
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Community Development: Planning, Zoning, and Building Permit services and
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enforcement.
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Community Services: Libraries, Recreation, Arts & Cultural, and Social Services.
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Proprietary Functions: Enterprise Operations for water and wastewater utilities; as
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well as Internal Service Operations for risk management and fleet maintenance
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and replacement.
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DESCRIPTION OF REPORTING ENTITY
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The City of Newport Beach was incorporated September 1, 1906. The current City
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Charter was adopted in 1954. The City operates under a Council- Manager form of
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government and provides the following services: public safety (police, fire and
marine), highway and streets, cultural and recreation, public improvements, planning
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and zoning, utilities, and general administrative services.
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The financial statements present the financial activity of the City of Newport Beach (the
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primary government) and the Newport Beach Public Facilities Corporation, which is a
component unit of the City. This component unit, which is discussed below, is
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included in the City's reporting entity because of the significance of its operational or
financial relationship with the City. Even though it is a legally separate organization,
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the City of Newport Beach elected officials have continuing full or partial accountability
for fiscal matters of the entity. The financial reporting entity consists of: (1) the City, (2)
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organizations for which the City is financially accountable, and (3) organizations for
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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.
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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. ■
Blended Component Unit. The financial statements of the City of Newport Beach ■
include the financial activities of the Newport Beach Public Facilities Corporation (the
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■ "Corporation "). The Corporation was formed on March 9, 1992, for the purpose of
■ assisting the City of Newport Beach in the financing of public improvements, including
a public library. The Corporation is governed by a Board of Directors comprised of
■ seven individuals appointed by the City Council of the City of Newport Beach, The
Corporation's financial data and transactions are included in the debt service fund
■ type, capital projects fund type and general long -term debt account group
■ Organizations Other than Reporting Entity. The following entities provide services
■ within the City but are not component units: State of California, County of Orange and
various school and other special districts. These entities do not meet the above
■ criteria of a component unit and their financial information is not included in this
report.
■
■ LOCAL ECONOMIC CONDITION AND OUTLOOK
■ Although the City's long -term tax base is broad and diverse, there are significant
■ short-term fluctuations in all City revenues, including taxes. The primary revenue
sources include property taxes and sales taxes. There are a number of major hotels
■ located within the City which produce a transient occupancy tax. In addition, the City
■ owns various properties which generate revenue, and investment of temporarily idle
cash reserves provides limited interest earnings. Other, smaller sources of revenue
■ are numerous and highly varied.
■ Though real recovery has become evident, economic activity in the City and the region
continues to be slower than it was eight to ten years ago. The long -term outlook is
■ favorable, but significant changes in the major components of economic activity are
' taking place. Among other things, there is a general movement toward more
numerous, smaller business entities. Large firms are certainly still in the picture, but
their share of the employment and business activity in the region is not as dominant
as it was. Commercial and residential development within the City continues . to
■ generate new revenues, but, its character is also different than it was ten years ago. It
■ is more focused on a few significant projects. This development results in additional
costs to the City as it continues to provide the highest quality services to its residents
■ and commercial establishments. Because of the City's outstanding beaches and
harbor, Newport Beach attracts as many as 100,000 tourists a day. This tourist
■ population helps to maintain the City's strong economic base, but it also requires
additional expenditures for routine public services.
■
■ Overall, property values in Newport Beach have declined over the past seven year
period, but there has been recovery of late. The City's property tax base remains
■ substantial. Of greater significance than the change in property values are the recent
budget actions by the State of California. These actions have had a significant and
■ ongoing adverse impact on the City's finances, especially property taxes. Although
■ some of the major revenues continue to fall short of long -term trends, the overall
recovery has been sufficient to enable progress in reconstituting some of the reserve
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depletion which had occurred in prior years. It has also enabled an increased level of ■
General Fund spending on capital projects and other areas where services had been ■
constrained in the recent past. Approximately 14% of the work force has been
eliminated in recent years, and significant reductions have also been made in other ■
areas, most notably capital projects. The reduced size of the work force has
remained essentially unchanged, but the recovery has brought about an increase in ■
capital projects spending. ■
The City's fiscal posture is still being affected by several one -time events, most of ■
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 ■
Orange County. Even though there may be some additional subsequent recovery, the
City chose to write off remaining investment claims within a relatively short period after ■
the bankruptcy. 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, as described above, 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, 1997, all ■
negotiations were not complete.)
During this fiscal year, construction of the City's Groundwater Development Project ■
neared completion. This project consists of new wells being drilled at inland sites in ■
another city, with the water then being piped to Newport Beach. Actual spending for ■
the project during this fiscal year was $8,344,805. 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.
■
For the second year in a row, the City's comprehensive Capital Projects program was
particularly ambitious, with total spending of $31,542,078 actually taking place during ■
fiscal year 1996 -97. The prior year total of $37,596169 was the largest annual ■
expenditure on capital projects (including funds from all sources) in the City's history.
In addition to the Groundwater Project, other major projects either continuing or ■
getting underway were MacArthur Boulevard widening, Birch Street Bridge Widening,
Big Canyon Reservoir Disinfection Modification, El Paseo Storm Drain Project, and a ■
large number of smaller drainage, street, park facility, harbor and tidelands, and other
projects. ■
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■ Actions initiated in prior years to limit expenditures and expand selected existing
■ revenues were continued during FY 1996 -97. In addition, selected new local revenue
sources were identified. This was necessary to partially offset the permanent loss in
■ the revenue structure resulting from State cuts. The detailed Cost of Services Study,
completed in the prior fiscal year, was used as the basis for adjusting fees for many
City services. The City Council established policy regarding the portion of the City's
cost which should be covered by direct fees for over 150 different services. On the
■ expenditure side, after several years of decreases, the size of the work force was held
virtually constant. Departmental spending on Maintenance and Operations was also
held essentially flat. Several City work -force functions previously performed by full-
time employees are being accomplished by part-time employees, or have been
contracted out.
■ As was the case last year, the number of major fiscal variables which contain a
significant degree of volatility is still high, but it is continuing to decrease. 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 (notwithstanding annexations, if
■ any).
■ MAJOR INITIATIVES
■ For the Year. This fiscal year saw a continuation of a few key trends begun during the
prior year. Consolidation and implementation of extensive changes initiated during
the recent past was still the rule. The past few years have clearly represented a
■ transitionary period in the City's history. The previous four years were characterized by
■ a reduction of the workforce, streamlining 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.
■
r As a cost saving measure, Newport Beach is working together with neighboring
communities for the shared use of Police helicopters. The City also continued with
■ installation of video cameras in police vehicles. This has had a very favorable impact
on several aspects of law enforcement, both from a criminal prosecution standpoint
and a civil liability standpoint.
■ For the Future. In addition to following through on the items mentioned above, the
■ City will continue to expand the application of the Geographic Information System, as
well as other related automation programs. Evaluation of a document imaging
■ program is scheduled to begin shortly after the beginning of the new fiscal year, and a
comprehensive Police Strategic Information Systems project will result in additional
■ effectiveness of the City's law enforcement resources.
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The City will participate in the conversion to the 800 MHZ public safety radio system
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throughout Orange County. This is a costly but critically important project that will take
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place over several years.
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Newport Beach places a high priority on its infrastructure, and the Capital
Improvement Project program is expected to continue at close to its current ambitious
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pace. The City is beginning a $12 million reconstruction of the bridge that brings
residents and visitors onto the Balboa Peninsula. Financing from federal, state, and
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local transportation funds are being combined to make the project possible. The new
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bridge will replace one that was originally constructed in 1934. The project is
expected to take about 18 months to complete.
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The potential annexation of Newport Coast and other adjacent areas will continue to
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be examined. These topics are expected to be in the forefront during the coming
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fiscal year.
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FINANCIAL CONTROLS AND PROCEDURES
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Internal Control Structure. Management of the City is responsible for establishing
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and maintaining an internal control structure designed to ensure that the assets of the
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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 '.
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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
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valuation of costs and benefits requires estimates and judgments by management. ■
The City of Newport Beach 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 were ■
rewritten and adopted, as was the City's Investment Policy. Warehousing, Stock
Issuance, and Property Disposal Procedures were also rewritten, and Standard
Operating Procedures for the Accounting and Purchasing Divisions were substantially
revised and updated. All controlled property was inventoried and tagged. ■
Single 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 Act of ■
1984 and the U.S. Office of Management and Budget Circular A -133, Audits of State,
Local Governments, and Non - profit Organizations. As part of the City's Single Audit, ■
tests are made to determine the adequacy of the internal control structure, including
that portion related to federal financial assistance programs, as well as to determine ■
that the City has complied with applicable laws and regulations. The results of the ■
City's Single Audit for the fiscal year ended June 30, 1997, provided no instances of
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material weaknesses in the internal control structure or significant violations of
. applicable laws and regulations. The information related to the Single Audit, including
the Schedule of Federal Financial Assistance, findings and recommendations, and
independent auditors' reports on the internal control structure and compliance with
applicable laws and regulations are included in a separate report.
■ Budgeting Controls and Changes. The City of Newport Beach maintains budget
controls. The objective of these controls is to ensure compliance with legal
provisions embodied in the annual appropriated 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.
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.
Although the total fund balance of the General Fund decreased by $174,493 during
the year, the Contingency Reserve portion of that fund balance actually increased by
■ $650,901. The net overall decrease was the result of the expenditure of designated
reserves for their intended purpose, such as the use of the Park Fees Reserve funds
to partially pay for construction of Bob Henry Park. The City's recently established
standard of reaching and maintaining a stabilization (contingency) reserve equal to
15% of annual General Fund appropriations continues to be the ultimate goal. The
City has every intention of achieving that goal, as part of the annual budget plan.
Although this year's contribution of $650,901 evidences the City's commitment, it will
. probably take a few years to accumulate the 15% specified by the policy.
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GENERALFUND
Ten Year Trend in Fund Balance
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1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Fiscal Year Ending June 30
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, 1997, 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 six year period beginning with fiscal year.
1990 =91.
Fiscal Year 1996 -97 Governmental Revenues
For only the second time in the last five years, the City showed greater net revenue, in
actual dollars, than it received during fiscal year 1990 -91. With an inflation
adjustment, however, current revenue is still below the 1990 -91 level. This situation
is representative of the magnitude of the overall economic decline, as well as State-
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Percentage
Cumulative
Percent
Change
Change
Amount
of
From FY
Since FY
Revenue Source
(0000)
Total
1995 -96
1990 -91
Taxes
$44,524
48.98%
3.90%
9.99%
Licenses, Fees, & Permits
$4,082
4.49%
33.75%
45.37%
Intergovernmental
$11,871
13.06%
42.75%
7.63%
Charges for Services
$7,185
7.90%
14.45%
50.03%
Fines & Forfeitures
$2,529
2.78%
- 11.45%
- 18.81%
Use of Money & Property
$10,498
11.55%
- 4.56%
4.98%
Miscellaneous
$10,208
11.23%
22.40%
495.22%
Total
$90,897
100.00%
9.92%
19.95%
For only the second time in the last five years, the City showed greater net revenue, in
actual dollars, than it received during fiscal year 1990 -91. With an inflation
adjustment, however, current revenue is still below the 1990 -91 level. This situation
is representative of the magnitude of the overall economic decline, as well as State-
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■ level budget actions which had the effect of significantly reducing certain tax revenues
■ previously allocated to the City. The revenue recovery now underway is not substantial
enough to support any significant growth in City services in the foreseeable future.
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Long term composition of the City's overall Revenue structure has changed as a
result of several factors. Primary among these is the State's reallocation of several
tax revenues from the City to other State programs. The graph below indicates that
the impact of this shift is still ongoing. Newport Beach has simply been forced to find
other sources of revenue to fund continuing services to its residents.
35.0%
30.0%
25.0%
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m 15.0%
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10.0%
Six Year Trend In Makeup of Governmental Revenue
0.0%4—
1991-92
195293
1993-94
1994 -05
1995.96
199647
Fiscal Year
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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 anticipated. (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 report.
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Percentage Changes in Major Revenue Sources
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Revenue Source
Expenditures. The following schedule (expressed in thousands) presents a
summary of general governmental expenditures for the fiscal year ended June 30,
1997 and the dollar value of the increase or decrease during the past six years.
Fiscal Year 1996 -97 Governmental Expenditures
While spending on Public Works, Community Services, and General Government
have gone down since 1991, spending on Public Safety, Community Development,
and Capital Outlay have actually gone up. It must be pointed out that the magnitude of
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Current
Percent
Change
Change
Amount
of
From FY
Since FY
Expenditures
(000)
Total
1995 -96
1990 -91
General Government
$5,673
6.42%
$230
($1,628)
Public Safety
$35,647
40.36%
$1,076
$8,735
Public Works
$15,502
17.55%
$722
$1,045
Community Development
$3,330
3.77%
$378
$356
Culture and Recreation
$6,585
7.46%
$669
($698)
Capital Expenditures
$20,697
23.43%
$9,405
$1,198
Debt Service
$891
1.01%
($178)
$891
Total Expenditures
$88,325
100.00%
$12,302
$9,900
While spending on Public Works, Community Services, and General Government
have gone down since 1991, spending on Public Safety, Community Development,
and Capital Outlay have actually gone up. It must be pointed out that the magnitude of
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the relative changes in some of the expenditure categories shown above is
somewhat less than it would appear from the raw numbers. For example, 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. The largest proportional reduction was
in General Government.
$40,000
$35,000
$30,000
$25,000
F. 1 111
$15,000
$10,000
$5,000
Change in Government Expenditures
(Thousands of Dollars)
- - Public Safety
�Capltal Expenditures
...... .- _.. ...... Public Works.. .....
Culture and Recreation
"General Government
�Communily Development
Debt Service
$0
1989 -90 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996 -97
(The above chart reflects actual dollars, with no adjustment for inflation.)
Enterprise Operations. The City had three enterprise operations at June 30, 1997:
Water, Wastewater, and Cannery Village Parking. An analysis of the City Enterprise
Fund operations indicates the following results for fiscal year 1996 -97:
• The Water enterprise activity reported a net income of $1,450,472. Actual
operations produced income of $1,610,013.
• The Wastewater enterprise activity reported a net income of $602,305. The
Wastewater Fund finished up the year with retained earnings of $3,608,085.
• The Cannery Village Parking enterprise operation reported net income of $70,911
for the fiscal year ended June 30, 1997, exclusively from operating income.
Defined Benerrt 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
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changes from year to year, and the City's contribution rates are modified accordingly. ■
Defined Contribution Retirement Plan for Part -Time Employees. In addition to the ■
PERS retirement plan for full -time City employees, the City contracts with the Public ■
Agency Retirement System (PARS) to provide federally mandated retirement benefits
for part-time employees. Each part-time employee contributes 3.75 percent of salary, ■
with the City contributing a matching 3.75 percent to this retirement system. The City's
contributions for each employee (and interest earned by the accounts) are fully vested ■
immediately. ■
Deferred Compensation Plan. The City offers a Deferred Compensation Plan for ■
full -time employees. This plan is designed to supplement the employee's PIERS Re-
tirement Plan. The City's Deferred Compensation Plan 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 idle short 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 formal Investment Policy approved by the City Coun-
cil. 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, bank- ■
ers acceptances, U.S. Government and Agency Securities, commercial paper, repur._;
chase agreements, and the Local Agency Investment. Fund are examples. It is the �..- ■
policy of the City Council that anytime more than three percent of the City's investment,.:
portfolio is moved from one investment to another, the :Finance' Director advises the..: ■
members of the Finance Committee of that fact by phone or FAX. ■
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 re- ■
serves will reverse this trend, but it is not likely to have a significant favorable impact in
the immediate future. It is the City's long- standing policy to account for all financial ■
institution charges, including primary checking account charges, as an abatement to ■
investment earnings revenue.
During this fiscal year, the City had none of its funds with Orange County for invest- ■
ment 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 General
Purpose Financial Statements in the Financial Section of this Report. ■
AV
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. The City's current investment strategy is to normally place most of the funds with four
private sector investment management firms. Each of these intermediaries is guided
by and constrained to an investment program at least as restrictive as the policy
governing the City's direct investments. Regular reporting, both in writing and by
personal presentation to the City Council Finance Committee, is required.
Additionally, with regard to the private sector firms, all cash or securities managed by
them on the City's behalf are held by well established and highly reputable third party
custodians. Smaller, more liquid portions of the portfolio are invested directly by City
staff or placed with the State Pool (LAIF).
Debt Administration. At year end, the City had a number of debt issues outstanding.
These issues, net of applicable unamortized discounts, included certificates of
participation of $6,940,000; notes payable of $2,813,704; and capital leases of
$1,853,027. Standard and Poor's Corporation assigned a "AA-" rating to the
certificates of participation.
■
Risk Management. The City maintains a risk management program which is a
combination of self- insured retention, excess insurance coverage, and written
policies. As part of this program, resources are now being set aside in the Insurance
Reserve Fund (as opposed to the General Fund) to meet current and potential losses,
On July 1, 1994, the City purchased excess general liability insurance coverage of $10
million, with a self- insured retention (SIR) of $1 million per occurrence. 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 insurance provides coverage for work related accidents and diseases. On July
1, 1996, general liability coverage was increased to $20 million per occurrence with a
$1 million SIR. Further policy and administrative adjustments in the area of Risk
Management are anticipated. Although the Insurance Reserve Fund maintains a
substantial accumulated deficit, management is confident that future operating
income and transfers will be sufficient to satisfy current and future claims against this
fund's resources.
General Fund Balance. The fund balance of the General Fund decreased by
$174,493 during the fiscal year ended June 30, 1997. However, as mentioned above,
this is after the transfer of $650,901 to the contingency reserve.
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 -133. The independent
auditors' report on the general purpose financial statements and combining and
xv
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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 has been 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, 1996. 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 conform to program standards. Such a program must satisfy both ,
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our
current report continues to conform to the Certificate of Achievement program
requirements, and we are submitting it to GFOA.
■
The California Society of Municipal Finance Officers ( CSMFO) is a state organization
which sponsors extensive training and emphasizes high standards in all aspects of
municipal finance operations, including financial reporting. 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 Windrose which appears on the cover of this report was designed by the City's
Geographic Information Systems staff. In keeping with the City's custom, this is the ■
same design that was used on the cover of the three Budget Document publications
covering the same fiscal year as this report. Divider pages contain scenes of coastal ■
Newport Beach, Newport Harbor, and various settings within the City. These
photographs were obtained from several sources, but the Newport Beach Conference ■
and Visitor's Bureau was the source of many of the images, and their help and
cooperation were greatly appreciated. ■
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ACKNOWLEDGMENTS
Preparation of this report could not have been accomplished without the efficient and
dedicated services of a number of personnel. It would be difficult to name them all.
Virtually everyone in the Accounting Division and the Print Shop contributed to the
project. In addition, members of the Administrative Services Department would like to
thank the Mayor and City Council for their interest and support in planning and
conducting the financial operations of the City in a responsible and progressive
manner. We would also like to thank our auditors, KPMG Peat Marwick LLP, for their
time and assistance in the preparation of the report. This report was completely
prepared and published by City employees.
-
Ke n J. rphy
City nager
xvii
Dennis C. Danner
Administrative Services Director
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Newport Beach,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1996
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
4 Of NO
W MIEG SLAIFS H
ANO
CANADA
coxIE OU wx Preside
s>Eaa, s
Executive Director
xviii
- -- - - - - -- - -- -
California Society of
Municipa(Finance Officers
Certificate of Award
Outstanding Financial Reporting 1995 -96
Presented to the
City of Newport Beach
This certlOcate Is issued In recognition of meeting professional standards and criteria in reporting which reflecl o high level of quafiy
in tte annual financlal tmtemnts and in the mtderfying accmmti, q system from which the reports were prepared.
'" February 24, 199 7
i
Ir
X Dedicatedlo Excellence in Municipal t t t I
XIX
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NEWPORT BEACH CITY OFFICIALS ■
City Council
■
�Y
■
Jan Debay
■
Mayor
�
R
„,y Y p
r
■
Norma J. Glover
Thomas C. Edwards John W. Hedges
■
Council Member
Mayor Pro Tern Council Member
John Noyes
Dennis D. O'Neil Tom W. Thomson
■
Council Member
Council Member Council Member
■
Principal Administrative Officers
■
■
N �
■
Kevin J. Murphy s..:'s =, :.t
■
City Manager
LaVonne M. Harkless
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
■
BobMcDonell .......................................................................................
............................... Chief of Police
■
TimRiley ......................................................................................
............................... Fire & Marine Chief
David E. Niederhaus .............................................................
............................... General Services Director
■
LaDonna Kienitz ....................................
............................... Community Services Director /City Librarian
Patricia L. Temple .............................................................................
............................... Planning Director
■
JayElbettar ........................................................................................
............................... Building Director
■
Don Webb ..................................
............................... .........................Public Works Director /City Engineer
■
xx
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■ ELECTORATE
■
■
MAYOR
■ COUNCIL
I— — CIVILSERVICF:BOARD P.B. &R. COMMISSION TI
■ I L-- - - --"1 L- -- -- -J I I
_ _ _ _ CITYCLERK CITYAWORNEY I I
■ I rr BUII.DINGCODI+ r -- O MI SI N �J I
L B(:LIRDOFAPPF.Al S J L- KCSCOA @9ISSION J
I
■ I C
LPLANNING COMMISSION ITY MANAGER
r L.IBRARYBOARD
■ I I L- - - - - -J L- - - - - -J I I
■ I I ASSISPANT I I
II II
■ II II
I I
II I
■
PoLIcE FIRE &AARINE
ppor< 5 rviu:e Admini ±erosion (leean Llicg n s
c
P:nrol bpccuro ^s 'flJclnnds QPCwions
new.„ v:mn, n:,.:n
I Ih +ecaee ❑.,suxoency >InJirn kn•aez Packing fun
■ I Parking /:Inimnl fnnnol ITnx,nL::,n Alnrcnah . I I
■ i I �r I I
■ III PL�\NNING &BUILDING CONLMUNIMEMICES
I` — fn nr I'p:n. h rroic <n Pl:m Clr«k{ B d^mi`;rC N, —I
■ I Ad, n , Pbn ^ing P, Permv LiLrvy &mic —
Code nforecmenr Wpw:ls ln. Recrretio
Iticmnrs Prt'Cm s
■ I I
I
■
■ I .PUBI.IC%XroRKS GENM . SERVICES I
'I Pvk and 'fIq I
I I+ Ict4F o 'rem m \ \ ".ar IL:ildi�g_ Fiela A liyuipm r J
rnlr. I p 11'.ae ve,cr 3faimennnn m
Inspcciir a 4;Icuricl 'CniOC Signs & M,,kings
■ '1'n,Rlc UII k Gxs µciuse /fiery ling
I
■
■ I - 1DNIHNISTTLA7IVESERMFS
L — — — — — — — — — — Personnel :,,I. ..........
,n
Rei,k �Lrmegcm Pusehio'
Risk 34 acema n:mn Prtx;en &ng
■ Inlurr RelaGrnor 'rclttommnnicaeione
A¢ouving Grolmae Inrnrnudon Sysrc
■ m
■ O r - - - -J
LIAECIi�1� COUNCILAPPOTNTED COUNCIL, DEPAKINI EN'IS
■ BOAR,DS &COMMISSIONS APPOINTED
■
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Financial Section
W
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S
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■ KPMG Peat Marwick LLP
■ Center Tower
650 Town Center Drive
■ Costa Mesa, CA 92626
■
■
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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, 1997, 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 the standards
applicable to financial audits contained in Government Auditing Standards issued by the
■ Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose financial statements are free
■ of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and 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 financial position of the City of Newport Beach, California as of June 30, 1997,
■ 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 our report dated October 3,
■ 1997 on our consideration of the City of Newport Beach's internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
■ Our audit was performed for the purpose of forming an opinion on the general purpose financial
■ statements of the City taken as a whole. The accompanying combining, individual fund and
individual account group financial statements and schedules listed in the accompanying table of
■ contents are presented for purposes of additional analysis and are not a required part of the general
purpose financial statements of the City of Newport Beach, California. This additional information
■ is the responsibility of the management of the City. Such information has not been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, in our
■ opinion, is fairly stated, in all material respects, in relation to the general purpose financial
statements taken as a whole.
■
■
Memae� Flom of
■
KPKf 11e 1n.111
■
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■
General Purpose
Financial Statements
w
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3
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CITY
OF NEWPORT BEACH
Combined Balance Sheet - All Fund Types and
Account Groups
■
June 30, 1997
■
Governmental Fund Types
■
Special
Debt
Capital
Assets and Other Debits
General
Revenue
Service
Projects
■
Cash and investments (Note 2)
$ 8,223,937 $
15,057,246
$ 349,284
■
Accounts receivable and accrued revenues
1,803,166
390,043
Lease Receivable
814,000
Due from other governments
1,791,682
3,212,464
■
Allovrance for doubtful accounts
Due from other funds (Note 11)
2,252,527
■
Inventories of materials and supplies, at cost
192,642
Restricted assets - cash and investments (Note 2)
1,541,086
$
579,851
8,003,824
■
Other assets
99,159
2,012
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 Assets and Other Debits
$ 16,104,199 $
19,475,765 $
579,851
$ 8,353,108
■
Liabilities, Fund Equity and Other Credits
Liabilities:
■
Accounts payable and accrued liabilities
$ 1,751,039 $
1,720,666
$ 37,219
Accrued payroll
1,133,348
15,322
■
Due to other funds (Note 11)
256,512
798,976
Deferred revenue
627,358
2,385,420
■
Due to bondholders (Note 5)
Due to others
■
Deposits
1,536,273
187,566
Deferred compensation (Note 7)
Current portion of debt (Note 4)
■
Long -term debt (Note 4)
■
Total Liabilities
5'W'018
4,565,486
836,195
Fund Equity and Other Credits:
■
Investment in general fixed assets
Contributed capital (Note 12)
■
Retained earnings (accumulated deficit)
Fund balances (Note 13):
■
Reserved
2,560,165
3,986,023 $
579,851
7,063,846
Unreserved, designated
8,496,016
3,868,833
■
Unreserved, undesignated
7,055,423
453,067
Total Fund Equity and Other Credits
11,056,181
14,910,279
579,851
7,516,913
■
Total Liabilities, Fund Equity
and Other Credits
$ 16,104,199 $
19,475,765 $
579,551
$ 8,353,108
■
See Accompanying Notes to General Purpose Financial Statements.
■
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4
■
■
Proprietary
Fiduciary
Fund Types
Fund Type
Account Groups
General
General
Internal
Fixed
Long -Term
Totals (Memorandum Only)
Enterprise
Service
Agency
Assets
Debt
1997
1996
$ 11,321,657
$ 1,168,598
$
38,457,953
$
74,578,675
$
68,973,406
3,513,856
5,707,075
5,783,748
814,000
888,000
51004,146
8,737,518
.
(3,333,100)
2,252,527
4,556,282
51,075
159,158
402,875
330,072
1,732,775
1,886,590
13,744,126
9,645,365
101,171
:. :196,240
200,000
200,000
50,176,720
5,287,077
$
80,621,522
136,085,319
122,480,468
$
579,851
579,851
579;731'
11,026,880
11,026,880
9,510,3961:.
$ 66,795,093
$ 6,614,833
$
40,344,543
$
80,621,522
$
11,606,731
$
250,496,645
$
228,548,126
$ 3,000,623
$ 678,981
$
7,188,528
$
6,489,668'
59,774
23,483
1,231,927
1,492,732
510,751
686,288
2,252,527
4,556,282
3,012,778
4,450,568 <
$
7,543,703
7,543,703
3,347,1,30 .
2,447,252
2,447,252
1,387,657
88,174
1,812,013
1,892,355
30,353,588
30,353,586
25,113,367,
1,290,711
4,236,852
5,527,563
.5,110,761
14,560,000
12,609,389
$
11,606,731
38,776,120
37,764,682:
19,510,033
18,234,993
40,344,543
11,606,731
100,145,999
91,604,602,.`
$
80,621,522
80,621,522
74,069,174
14,205,087
4,097,648
18,303,735
18,303,735
33,079,973
(15,717,808)
17,362,165
.14,541,959
14,189,885
9,086,212
12,364,849
21,206,986
7,508,490
(204,542)
47,286,060
(11,620,160)
80,621,522
150,350,646
136,943,524
$ 66,796,093
$ 6,614,833
$
40,344,543
$
80,621,522
$
11,605,731
$
250,496,645
$
228,548,126
9
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■
CITY OF NEWPORT B EACH
Combined Statement of Revenues, Expenditures
■
and Changes
in Fund Balances
All Governmental Fund Types
■
For the Year
Ended ,tune 30, 1997
■
Governmental Type Funds
■
Special
General
Revenue
■
Revenues:
Taxes
$ 44,523,935
■
Licenses, fees and permits
1,840,024 $
2,241,485
Intergovernmental revenue
4,834,968
7,036,449
■
Charges for services
7,180,468
4,742
■
Fines, forfeitures and penalties
2,364,662
164,353
Revenue from use of money and property
5,069,125
5,235,736
■
Contributions
303,111
404,376
Other
284,061
■
Total Revenues
66,400, 354
15, 087,141
■
Expenditures:
Current:
■
General government
5,673,321
Public safety
35,531,168
116,079
■
Public works
15,015,995
486,100
Community development
2,735,997
593,548
■
Community services
5,717,501
867,834
■
Capital Outlay
7,300,300
7,746,972
Debt Service:
■
Principal (Note 4)
53,543
105,029
Interest and fiscal charges
8,963
131,343
■
Total Expenditures
72,036,788
10,046,905
.
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(5,636,434)
5,040,236
■
Other Financing Sources (Uses):
■
Operating transfers in
4,873,525
Operating transfers out
(1,489,704)
(4,623,524)
■
Proceeds from long -term debt
1,825,176
Proceeds from sale of fixed assets
252,944
■
Total Other Financing Sources (Uses)
5,461,941
(4,623,524)
■
Excess (Deficiency) of Revenues and
■
Other Financing Sources Over (Under)
Expenditures and Other Financing Uses
(174,493)
416,712
■
Fund Balances, July 1
11,230,674
14,493,567
■
Fund Balances, June 30
$ 11,056,181 $
14,910,279
■
See Accompanying Notes to General Purpose Financial Statements.
■
6
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■
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■
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Debt Capital
Service Projects
$ 28,103 $
28,103
150,000
441,731
591,731
(563,628)
563,748
563,748
120
579,731
$ 579,851
164,751
9,216,693
9,381,444
5,649,215
5,649,215
3,732,229
Totals (Memorandum Only)
1997
1996
$ 44,523,935
$ 42,853,480
4,081,509
4,851,571
11,871,417
8,315,543
7,185,210
6,278,416
2,529,015
2,855,063
10,497,715
11, 000, 272
9,924,180
6,388,912
284,061
152,001
90,897,042 82,695,258
5,673,321
5,442,862
35,647,247
34,571,273
15, 502, 095
14, 779,614
3,329,545
2,952,247
6,585,335
5,916,194
20,696,487
11,291,759
308,572
412,408
582,037
656,637
88,324,639 76,022,994
2,572,403 6,672,264
5,437,273
(6,113,228)
1,825,176
252,944
1,402,165
6,826,113
(6,576,113)
33,978
283,978
3,732,229 3,974,568 6,956,242
3,784,684 30,088,656 23,132,414
$ 7,516,913 $ 34,063,224 $ 30,088,656
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, 1997
■
General Fund
Variance
■
Favorable
Budget
Actual
(Unfavorable)
■
Revenues:
■
Taxes
$ 44,436,360 $
44,523,935
$ 87,575
Licenses, fees and permits
1,673,334
1,840,024
166,690
■
Intergovernmental revenue
4,797,001
4,834,968
37,967
Charges for services
7,718,836
7,180,468
(538,368)
■
Fines, forfeitures and penalties
2,520,000
2,364,662
(155,338)
Revenue from use of money and property
5,382,060
5,069,125
(312,935)
.
Contributions
415,727
303,111
(112,616)
Other
247,000
284,061
37,061
■
Total Revenues
67,190,318
66,400,354
(789,964)
■
Expenditures:
Current:
■
General government
5,487,548
5,673,321
(185,773)
Public safety
35,099,121
35,531,168
(432,047)
■
Public works
15,100,537
15,015,995
84,542
Community development
2,768,323
2,735,997
32,326
■
Community services
5,948,492
5,717,501
230,991
Capital Outlay
8,321,503
7,300,300
1,021,203
■
Debt Service:
Principal (Note 4)
53,543
53,543
■
Interest and Fiscal charges
8,963
8,963
■
Total Expenditures
72,788,030
72,036,788
751,242
■
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(5,597,712)
(5,636,434)
(38,722)
■
Other Financing Sources (Uses):
Operating transfers in
5,000,281
4,873,525
(126,756)
■
Operating transfers out
(1,499,391)
(1,489,704)
9,687
Proceeds from long -term debt
1,825,176
1,825,176
■
Proceeds from sale of fixed assets
25,500
252,944
227,444
■
Total Other Financing Sources (Uses)
3,526,390
5,461,941
1,935,551
■
Excess (Deficiency) of Revenues
and Other Financing Sources
■
Over (Under) Expenditures
and Other Financing Uses
(2,071,322)
(174,493)
1,896,829
■
Fund Balances, July 1
11,230,674
11,230,674
■
Fund Balances, June 30
$ 9,159,352 $
11,056,181
$ 1,896,829
■
See Accompanying Notes to General Purpose Financial Statements.
■
8
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
283,012
Special Revenue Funds
178,605
329,065
486,100
Variance
1,757,245
593,546
Favorable
Budget
Actual
(Unfavorable) Budget
31,791,974
7,746,972
$ 1,959,367
$ 1,992,539 $
33,172
29,682,672
7,036,449
(22,646,223)
23,000
4,742
(18,258)
120,000
103,232
(16,768)
4,846,900
5,235,214
388,314
185,000
404,376
219,376
1,000
(1,000)
36,817,939
14,776,552
(22,041,387)
283,012
104,407
178,605
329,065
486,100
(157,035)
1,757,245
593,546
1,163,697
221,628
867,834
(646,206)
31,791,974
7,746,972
24,045,002
105,029
105,029
135,866
131,343
2,194,120 4,741,319
$ 150,000
4,523 437,685
24,588,586 587,685
590,685
(4,701,381) (4,623,524) 77,857
(4,701,381) (4,623,524) 77,857 590,685
Debt Service Fund
Favorable
Actual
S 28,103 $ 28,103
28,103 28,103
150,000
441,731
(4,046)
591,731
(4,046)
(563,628)
24,057
563,748
(26,937)
563,748 (26,937)
(2,507,261) 117,795 2,625,056 3,000 120 (2,880)
14,493,567 14,600,259 106,692 579,731 579,731
$ 11,986,306 $ 14,718,054 $ 2,731,748 $ 582,731 $ 579,851 $ (2,880)
(Continued)
m
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, 1997
Revenues:
Taxes
Licenses, fees and permits
Intergovernmental 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)
Interest and 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
Capital Projects Funds
Variance
Favorable
Budget Actual (Unfavorable)
$ 164,751 $ 164,751
$ 5,344,856 9,216,693 3,871,837
5,344,856 9,381,444 4,036,588
14,323,408 5,649,215 8,674,193
14,323,408 5,649,215 8,674,193
(8,978,552) 3,732,229 12,710,781
and Other Financing Uses (8,978,552) 3,732,229 12,710,781
Fund Balances, July 1 3,784,684 3,784,684
Fund Balances, June 30 $ (5,193,868) $ 7,516,913 $ 12,710,781
See Accompanying Notes to General Purpose Financial Statements.
10
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Totals (Memorandum Only)
Variance
Favorable
Budget Actual (Unfavorable)
$ 44,436,360 $ 44,523,935 $ 87,575
3,632,701
3,832,563
199,862
34,479,673
11,871,417
(22,608,256)
7,741,836
7,185,210
(556,626)
2,640,000
2,467,894
(172,106)
10,228,960
10,497,193
268,233
5,945,583
9,924,180
3,978,597
248,000
284,061
36,061
109,353,113
90,586,453
(18,766,660)
5,487,546
5,673,321
(185,773)
35,382,133
35,635,575
(253,442)
15,429,602
15,502,095
(72,493)
4,525,568
3,329,545
1,196,023
6,170,120
6,585,335
(415,215)
54,436,885
20,696,487
33,740,398
308,572
308,572
582,514
582,037
477
122,322,942
88,312,967
34,009,975
(12,969,829)
2,273,486
15,243,315
5,590,966 5,437,273
(153,693)
(6,200,772) (6,113,228)
87,544
1,825,176
1,825,176
25,500 252,944
227,444
(584,306) 1,402,165 1,986,471
(13,554,135) 3,675,651 17,229,786
30,088,656 30,195,348 106,692
$ 16,534,521 $ 33,870,999 $ 17,336,478
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, 1997
Internal
Totals (Memorandum Only)
Enterprise
Service
■
Operating Revenues:
Charges for services
$ 19,519,692 $
8,029,635 $
27,549,327
$ 24,072,642
■
Other
652,919
187,614
840,533
182,542
■
Total Operating Revenues
20,172,611
8,217,249
28,389,860
24,255,184
Operating Expenses:
■
Purchase of water
8,584,291
8,584,291
8,141,732
Salaries and wages
2,677,813
916,181
3,593,994
3,528,078
■
Depreciation
2,031,575
1,185,417
3,216,992
2,858,861
■
Professional services
1,993,246
75,213
2,068,459
1,366,281
Maintenance and supplies
833,560
396,279
1,229,839
941,401
■
Fleet parts and supplies
356,869
356,869
404,069
Systems maintenance
1,478,731
1,478,731
1,066,507
Workers' compensation
1,973,490
1,973,490
2,473,017
Claims and judgments
1,371,413
1,371,413
456,599
■
Disability
154,132
154,132
■
Compensated absences
1,793,631
1,793,631
1,337,344
Other
453,208
453,208
602,010
■
Total Operating Expenses
18,052,424
8,222,625
26,275,049
23,175,899
•
Operating Income
2,120,187
(5,376)
2,114,811
1,079,285
■
Nonoperating Revenues (Expenses):
Intergovernmental revenue
144
144
44,063
■
Interest income
730,989
59,021
790,010
1,440,412
Other income
89,498
89,498
34,956
■
Gain on sale of fixed assets
186
103,495
103,681
164,854
Interest expense
(831,421)
(122,472)
(953,893)
(342,988)
■
Total Nonoperating
■
Revenues (Expenses)
(10,748)
40,188
29,440
1,341,297
Income Before
■
Operating Transfers
2,109,439
34,812
2,144,251
2,420,582
■
Operating transfers
Operating transfers in
14,249
911,706
925,955
■
Operating transfers out
(250,000)
(250,000)
(250,000)
Total Operating Transfers
14,249
661,706
675,955
(250,000)
■
Net Income
2,123,688
696,518
2,820,206
2,170,582
■
Retained Earnings
(Accumulated Deficit), July 1
30,956,285
(16,414,326)
14,541,959
12,371,377
■
Retained Earnings
■
(Accumulated Deficit), June 30
$ 33,079,973 $
(15,717,808) $
17,362,165
$ 14,541,959
See Accompanying Notes to General Purpose Financial Statements.
■
12
.
■
This page left blank intentionally.
13
CITY OF NEWPORT BEACH
Combined Statement of Cash Flows
Al Proprietary Fund Types
For the Year Ended June 30, 1997
Cash flows from operating activities:
Operating income
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation
Intergovernmental revenue
Other revenue
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in accrued revenue
(Increase) decrease in deposits with other agencies
(Increase) decrease in inventories of materials and supplies, at cost
Increase (decrease) in accounts payable
Increase (decrease) in accrued payroll
Increase(decrease)in due to other funds
Increase (decrease) in deposits
Increase (decrease) in workers' compensation
Increase (decrease) in general liability
Increase (decrease) in compensated absences
Total adjustments
Net cash provided by operating activities
Cash flows from noncapital financing activities:
Operating transfers from other funds
Operating transfers to other funds
Net cash provided by (used for) noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Principal payments
Proceeds from sale of capital assets
Interest paid
Net cash used for capital and related financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by (used for) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, July 1
Cash and cash equivalents, June 30
Noncash Activities:
Contributed capital (Note 12)
730,989
59,021
■
(5,561,650)
189,535
■
18,616,082
979,063
■
$ 13,054,432
$ 1,168,598
■
Internal
Enterprise
Service
■
$ 2,120,187
$ (5,376)
■
■
2,031,575
1,185,417
■
144
89,498
■
(208,917)
_
■
8,370
■
(6,965)
(12,810)
11,390
(161,982)
■
10,130
(94,879)
(75,210)
(583,877)
■
3,296
23,546
151,095
208,119
■
1,854,797
723,143
■
3,974,984
717,767
■
14,249
911,706
(250,000)
■
14,249
661,706
■
(8,582,928)
(744,764)
(845,000)
(536,852)
186
155,129
(854,130)
(122,472)
(10,281,872)
(1,248,959)
■
730,989
59,021
■
730,989
59,021
■
(5,561,650)
189,535
18,616,082
979,063
■
$ 13,054,432
$ 1,168,598
■
Capitalized interest $
Acquisition of equipment by capital leases $
See Accompanying Notes to General Purpose Financial Statements.
14
$ ■
$ 933,436
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Totals (Memorandum Only)
1997 1996
$ 2,114,811 $ 1,079,285
3,216,992
2,858,861
144
44,063
89,498
34,956
(208,917)
(220,032)
8,370
41,564 - -
631,284 -
(19,775)
7,706
(150,592)
1,841,228
(84,749)
- - -
(659,087)
1,180,975
3,296
(12,965)
23,546
330,362
151,095
(1,975,000)
208,119
(71,994)
2,577,940
4,691,008
4,692,751
5,770,293
925,955
(250,000)
(250,000)
.675.955
(250,000)
(9,327,692)
(14,310,614)
(1,381,852)
(1,111,728)
155,315
245,846
(976,602)
(936,592)
(11,530,831)
(16,113,088)
790,010
1,440,412
790,010
1,440,412
(5,372,115)
(9,152,383)
19,595,145
28,747,528
$ 14223,030
$
19,595,145
$ -
$
306,760
$ -
$
571,566
$ 933,436
$
387,592
15
■
■
■
■
Notes to
Financial
Statements
W
■
■ CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1997
r
■ (1) Summary of Significant Accounting Policies
■ The financial statements of the City of Newport Beach (the "City ") have been prepared in
■ conformity with generally accepted accounting principles ( "GAAP ") as applied to
government units. The Governmental Accounting Standards Board ( "GASB ") is the
■ accepted standard - setting body for establishing governmental accounting and financial
reporting principles. The more significant of the City's accounting policies are described
below.
■ Description of Reporting Entity
The City of Newport Beach was incorporated on September 1, 1906 as a charter city in
the State of California. The City operates under a Council- Manager form of government
■
and provides the following services: public safety (police, fire and marine), highway and
streets, cultural and recreation, public improvements, planning and zoning,, utilities, and
t
general administrative services.
I
The financial statements present the financial activity of the City of Newport Beach (the
■
primary government) and its component unit. The component unit discussed below is
included in the City's reporting entity because of the significance of its operational or
■
financial relationship with the City. This entity is legally separate from the City. However,
the City of Newport Beach's elected officials have continuing full or partial accountability
for fiscal matters of the component unit. The financial reporting entity consists of: (1) the
City, (2) organizations for which the City is financially accountable and (3) organizations
■
for which the nature and significance of their relationship with the City are such that
exclusion would cause the City's financial statements to be misleading or incomplete.
■
An organization is fiscally dependent on the primary government if it is unable to adopt its
budget, levy taxes or set rates or charges, or issue bonded debt without approval by the
primary government. In a blended presentation, a component units' balances and
■
transactions are reported in a manner similar to the balances and transactions of the City.
Component units are presented on a blended basis when the component unit's governing
■
body is substantially the same as the 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
"Corporation ").
Newport Beach Public Facilities Corporation (the 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, capital projects funds and general long -term debt account group.
Separate financial statements are not prepared for the Corporation.
■
N
17
■
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June 30, 1997
■
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
■
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 for the payment of general long -term debt principal and
■
interest.
■
Capital Proiects Funds - The Capital Project Funds are used to account for financial
resources used 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 financed primarily by user charges
■
or where the periodic measurement of net income is deemed appropriate.
■
Internal Service Funds - The Internal Service Funds are used to account for the
claims and judgments, compensated absences and equipment maintenance cost of
service provided by one department of the City to other departments on a cost -
reimbursement basis.
■
■
■
fs
■
■
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
■
■
Fiduciary Fund Type
■
Agency Funds - The Agency Funds are used to account for assets held by the City
■
as an agent for individuals, private organizations or other governmental units and /or
other funds.
■
Account Groups
■
General Fixed Assets Account Group - The General Fixed Asset Account Group is
■
used to account for the cost of capital assets owned by the City, other than those of
the proprietary funds.
■
General Long -Term Debt Account Group - The General Long -Term Debt. Account
■
Group is used to account for long -term debt of the City, except for indebtedness
related to the proprietary fund types.
■
■
Measurement Focus
■
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds are accounted for using a current financial
■
resources measurement focus. With this measurement focus, only expendable financial
resources and current liabilities generally are included on the balance sheet. Operating .
■
statements of these funds present increases (i.e,, revenues and other financing sources)
and decreases (i.e., expenditures and other financing uses) in net financial resources.
Recognition of governmental fund type revenues represented by non - current receivables
are deferred until they become current.
■
All proprietary funds are accounted for on a flow of economic resources measurement
focus. With this measurement focus, all assets and all liabilities associated with the
operation of these funds are included on the balance sheet. Fund equity (i.e., net
■
economic resources) is segregated into contributed capital and retained earnings
components. Proprietary fund -type operating statements present increases (e.g.,
■
revenues) and decreases (e.g., expenses) in net economic resources.
■
Fiduciary fund types are accounted for according to the nature of the fund. The City has
only Agency type funds which are purely custodial in nature (assets equal liabilities) and,
thus, do not involve measurement of results of operations.
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 recognized when they
become susceptible to accrual, that is, measurable and available to finance expenditures
of the current period or soon thereafter to be used to pay liabilities of the current period.
The City considers property taxes as available if they are remitted within 60 days after
19
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June 30, 1997
■
year end. Sales taxes collected and held by the State are considered susceptible to
■
accrual.
■
Other revenues considered susceptible to accrual include interest income and charges for
■
services. Licenses and permits, fines, forfeitures and penalties excluding amounts
received from other governmental agencies, and other taxes are not susceptible to
■
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
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 the Financial Accounting Standards Board ( "FASB ") issued
on or after November 30, 1989 for proprietary fund types. The City has elected to apply
all FASB statements and interpretations issued on or after November 30, 1989, except
those that conflict with or contradict GASB pronouncements.
Budgetary Control and Accounting
The City adheres to the following general procedures in establishing the budgetary data
■
reflected in the financial statements:
■
• During April, the City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following July 1. The operating
.
budget includes proposed expenditures and the means of financing them.
.
Public hearings are conducted at City Council meetings to obtain taxpayer
comments. Prior to July 1, the budget is legally adopted through passage of an
appropriation resolution.
• Budgets are adopted on an annual basis consistent 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.
20
■
■
CITY OF NEWPORT BEACH
■
Notes to General Purpose Financial Statements
June 30, 1997
■
■
The legal level of budgetary control is the fund level. Total fund expenditures
■
may not exceed total fund budgeted amounts without approval from the City
Council.
■
Budgeted expenditure amounts used in the combined financial statements are
■
the final adjusted amounts. Revisions made to the original expenditures budget
for each fund type were as follows:
■
Original Adjusted
■
Budget Revisions Budget
General Fund $71,231,561 $1,556,469 $72,788,030
■
Special Revenue Funds 32,846,734 1,777,085 34,623,819
Debt Service Fund 587,685 587,685
■
Capital Project Funds 8,569,759 5,753,649 14,323,408
■
At fiscal year -end, budget appropriations lapse. Budget appropriations for
incomplete capital projects are re- budgeted in the following fiscal year by
■
Council action and are included in the revisions noted above. Projects:that are:
■
not started during the budget year are reevaluated in the following year.
■
Encumbrances represent commitments related to unperformed contracts for
goods and services. The City utilizes an encumbrance system as a.
■
management control technique to assist in controlling expenditures. Under this
system, encumbrance accounting for the expenditure of funds is recorded in .
■
order to indicate outstanding commitments and is employed in the
governmental fund types. Encumbrances outstanding at year -end are reported
■
as reservations of fund balances since they do not constitute expenditures or
liabilities. Encumbrances and their related budgets are honored in . the
■
subsequent year to fulfill these commitments and are presented as revisions to
the original adopted budget.
■
The City has not legally adopted an annual budget for the Environmental Liability and
■
Miscellaneous Grants Special Revenue Funds for FY 96/97. Reconciliation of fund
balance from a budgetary basis to a GAAP basis is provided in Note 14.
■
Cash and Cash Equivalents
■
■
For purposes of the Statement of Cash Flows, cash and cash equivalents are defined to
be cash on hand, demand deposits and highly liquid investments with a maturity of three
■
months or less from the date of purchase. For financial statement presentation purposes,
cash and cash equivalents are shown as cash and investments and restricted cash and
■
investments in the proprietary funds.
■
Investments
■
Investments are stated at cost or amortized cost, except for investments of the deferred
compensation plan which are stated at market value.
■
■
21
■
■
■
CITY OF NEWPORT ":'.EACH
Notes to General Purpose Financial Statements
■
June 30, 1997
■
■
Cash and investments are pooled to maximize investment yields. Interest earned on the
investments is allocated to the respective funds based on each fund's 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 on this property runs through fiscal year 2007. As the
revenue recognition criteria have not been met, a corresponding deferred revenue has
■
been recorded.
■
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 are not depreciated.
■
The City has elected not to capitalize the cost of building or acquiring infrastructure fixed
■
assets (e.g., streets, bridges, curbs and gutters, storm drains, sidewalks and light
■
systems). Consequently, these items are not reflected in the City's combined financial
statements.
■
Proprietary Funds Fixed Assets
■
Fixed assets of the City's Proprietary Funds are recorded at historical cost or estimated
■
historical cost, if actual historical cost is not available. Contributed fixed assets are valued
at their estimated fair market value on the date of contribution. For debt financed fixed
■
assets, interest incurred during the construction phase is reflected in the capitalized value
■
22
■
■
■
■
CITY OF NEWPORT BEACH
■
Notes to General Purpose Financial Statements
June 30, 1997
■
■
of the asset constructed, net of interest earned on the invested proceeds over the same
■
period.
■
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
■
Claims and Judgments
■
The City accounts for material claims and judgments and associated legal and
administrative costs when it is probable that the liability claim has been incurred and the
■
amount of the loss can be reasonably estimated. The City records the estimated loss
liabilities in the Internal Service Fund. Included therein are claims incurred but not
■
reported, which consists of (a) known loss events expected to be presented as claims
later, (b) unknown loss events that are expected to become claims, and (c) expected
■
future development on claims already reported. This is based upon historical actual
■
results that have established a reliable pattern supplemented by specific information about
current matters. Small dollar claims and judgments are recorded as expenditures when
■
paid.
■
Capital Leases
■
The City accounts for lease- purchase agreements as capital leases when title transfers to
the City at the end of the lease term or the lease contains a bargain purchase option.
■
Therefore, the capital leases are recorded at the present value of the future minimum
lease payments as of the date of their inception. Capital leases used for financing general
■
fixed assets are recorded both as capital outlay and other financing sources. Capital
lease 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 of the County
■
of Orange. The City records property taxes as revenue when received from the County,
■
except at year -end, when property taxes received within 60 days are accrued as revenue.
Property taxes are assessed and collected each fiscal year according to the following
■
property tax calendar:
■
Lien date March 1
Levy date July 1
■
Due dates November 1 - 1 st installment
March 1 - 2nd installment
■
Collection dates December 10 - 1 st installment
April 10 - 2nd installment
■
■
23
■
(2)
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June 30, 1997
■
■
Compensated Absences
■
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 will be paid to employees
upon separation from City service. Beginning in fiscal year 1990, the City adopted a
■
general leave plan to replace the traditional vacation and sick leave plan. The general
leave plan permits a maximum of three year's accrual for every employee, above which
■
the excess is paid out as current compensation. All employees hired prior to January 1,
1990, were given the option of remaining in the traditional vacation and sick leave plan or
■
enrolling in the general leave plan. All employees hired on or after January 1, 1990, are
automatically enrolled in the general leave plan. Compensated absences are accrued in
■
the Internal Service Fund when employee services have been rendered and when it
becomes probable that the City will compensate the employees for benefits through paid
■
time off or cash payments at termination or retirement. Benefits that have been earned
but are not yet available for use because employees have not met certain conditions are
■
accrued to the extent it is probable that the employees will meet the conditions for
compensation in the future.
■
Deferred Revenue
■
Deferred revenues are those where asset recognition has been met, but the revenue
■
recognition criteria has not been met.
■
Memorandum Only - Total Columns
■
Total columns on the combined statements are captioned "Memorandum Only" to indicate
■
that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position, results of operations, or cash flows in conformity with generally
■
accepted accounting principles. Neither is such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
■
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.
■
■
■
■
■
■
■
24
■
■
■
• Certificates of Deposit (or Time Deposits)
■
■
• Bankers Acceptances
■
CITY OF NEWPORT BEACH
■
Notes to General Purpose Financial Statements
Commercial paper
June 30, 1997
• Repurchase Agreements and Reverse Repurchase Agreements
■
Passbook Savings Accounts
■
Cash and investments at June 30, 1997 consisted of the following:
■
Unrestricted cash and investments:
• Medium Term Notes
■
Pooled cash deposits
$ 612,674
• Asset/Investment Management Agreements
Pooled investments
43,612,413
■
Investments - deferred compensation plan
30.353,588
Total unrestricted cash and investments
74,578,675
■
maintained in financial institutions which provide Federal Depository Insurance
Corporation protection on the bank balances. The California Government Code requires
Restricted cash and investments:
California banks and savings and loan associations to secure a city's deposits by pledging
■
Cash and investments with fiscal agents
13,744,126
■
Total cash and investments
$88.322.801
■
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 (or Time Deposits)
• Negotiable Certificates of Deposit
■
• Bankers Acceptances
■
• U.S. Treasury Issues
• Federal Agencies Securities
■
Commercial paper
• Repurchase Agreements and Reverse Repurchase Agreements
■
Passbook Savings Accounts
• Local Agency Investment Fund (State of California Investment Pool)
■
County Investment Pools (Los Angeles and Orange)
• Medium Term Notes
■
Asset - backed securities
• Asset/Investment Management Agreements
■
Deposits
■
Deposits consist of cash and demand deposits accounts. Deposits in 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 equal at
least 110% of a city's deposits. California law also allows financial institutions to secure
■
city deposits by pledging first trust deed mortgage notes having a value of 150% of a city's
total deposits. The City may waive collateral requirements for deposits which are fully
■
insured up to $100,000 by federal depository insurance.
■
■
■
25
■
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June 30, 1997
■
The City's deposits at year -end are categorized below to give an indication of the level of
■
credit risk assumed by the City in three categories as follows:
■
Category 1 Insured or collateralized with securities held by the City or by its
■
agent in the City's name.
■
Category 2 Collateralized with securities held by the pledging financial
institution's trust department or agent in the City's name.
■
Category 3 Uncollateralized.
■
As of June 30, 1997, the City's deposit balances were as follows:
CategorV Bank Carrying
1 2 3 Balance Amount
■
Petty Cash $4,782
■
Deposits:
Demand deposits $200,000 $1,622.211 $1,822,211 607,892
■
Total deposits 00 $1.622.211_ $1.822,211 $fz12 674
■
Investments
■
The investments that are represented by specific identifiable investment securities are
classified as to credit risk by three categories as follows:
■
CategorV 1 Insured, registered, or securities held by the City or its agent in the
■
City's name.
■
CategorV 2 Uninsured and unregistered, with securities held by the
■
counterparty's trust department or agent in the City's name.
CategorV 3 Uninsured and unregistered, with securities held by the counterparty
■
or by its trust department or agent but not in the City's name.
■
■
■
■
■
■
■
■
26
■
■
■
■
CITY OF NEWPORT BEACH
■
Notes to General Purpose Financial Statements
June 30, 1997
■
■
The City's investments at June 30, 1997, are summarized
below for the
credit risk,
■
carrying amounts, and market/contract values:
■
Category
Carrying
Market/Con-
1 2 3
Amount
tract Value
■
Pooled investments:
■
U.S. Treasury notes $11,359,665 $5,517,216
$16,876,881
$16,794,735
Federal Home Loan Bank 2,813,296
2,813,296
2,813,350
■
Federal Home Loan
■
Mortgage Corporation 500,690 504,105
1,004,795
1,008,284
Federal Farm Credit Bank 593,952
593,952
596,438
■
Federal National Mortgage
Association 5,555,186 1,991,186
7,546,372
7,539,263
■
Other Government
securities 2,056,580 999,909
3,056,489
3,057,217
■
Money market funds'
582,405
582,405
Repurchase agreements 550,000
550,000
550,000
■
Medium term notes 2,903,160 4,771,902
7,675,062
7,671,805
Commercial paper 1,937,906
1,937,906
1,937,585
■
State of California:
Local Agency
■
Investment Fund`
901,116
901,116
Los Angeles County
■
Pooled Fund'
74,139
74,139
Total pooled
■
investments $24.907.139 $17 j47
$43.612.413
$43.526.337
■
Investments with
■
fiscal agents:
Mutual funds'
$13 744 126
$13.744.126
■
Deferred compensation fund:
■
Mutual funds`
530.353.588
$30353.588
■
` Not subject to categorization.
■
At no time during the fiscal year did the City borrow funds through
the use
of reverse -
repurchase agreements. Moneys invested in derivatives through the State and County
■
Investment Pools are immaterial.
■
■
■
■
■
27
■
■
28 ■
■
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June
30, 1997
■
(3) Fixed Assets
■
A summary of the changes in General
Fixed Assets is as follows:
■
Balance
Balance
■
July 1, 1996
Additions Deletions
June 30, 1997
■
Land
$24,580,998
$3,117,924
$27,698,922
■
Structures
38,911,208
2,772,299
41,683,507
Equipment
10,516,968
722,125
11,239,093
■
$74.009.174
12 34 �__
$80.621 522
■
A summary of the changes in the Proprietary Fund Type fixed assets
are as follows:
■
Balance
Balance
■
July 1, 1996
Additions Deletions
June 30, 1997
■
Enterprise Funds:
Land
$3,055,613
$3,055,613
■
Structures
84,461,002
$8,582,928 $4,100
93,039,830
■
Equipment
671,171
671,171
88,187,786
8,582,928 4,100
96,766,614
■
Less accumulated
■
depreciation
(44,562,419)
(2,031,575) 4100)
(46.589,894)
■
Net
$43.625.367
$& 551.353 $_
0 176 720
■
Internal Service Funds:
Equipment
$8,004,775
$1,678,200 $200,473
$9,482,502
■
Less accumulated
■
depreciation
(3.158.848)
(1,185,417) 148840)
(4,195,425)
■
Net
$4,845,927
4 2 7 1 33
2 7 77
■
■
■
■
■
■
■
28 ■
■
■
■
CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1997
■
■ (4) Long -Term Debt
■ General Long -Term Debt Account Group
A summary of the changes in the General Long -Term Debt Account Group is as follows:
Balance Balance
July 1, 1996 Additions Retirements June 30. 1997
■ Certificates of
participation $ 7,090,000 $150,000 $6,940,000
■ Note payable 2,918,733 105,029 2,813,704
Capital leases 81,394 $1,825,176 53,543 1,853,027
■
Total $i32511p $Z-2 $11 606 731
■
■ 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, 1994 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,
■ 1997, the City has a required cash reserve balance for debt service of $579,851,
which is recorded as a restricted asset and reservation of fund balance in the Debt
■ Service Fund. The certificates outstanding at June 30, 1997 amounted to $6,940,000.
■ Note Payable
■ Note payable consists of a note to the California Department of Boating and
■ Waterways in 1987 for a loan in the amount of $3,300,000. The note is payable in
thirty annual principal and interest installments of $236,372 at 4.5 % rate of interest
■ beginning August 1, 1987. The outstanding balance at June 30, 1997 amounted to
$2,813,704.
■ 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 and 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
■
■ 29
■
■
CITY OF NEWPORT BEACH ■
Notes to General Purpose Financial Statements ■
June 30, 1997
■
obligations range from 5% to 9 %. These lease agreements qualify as capital leases ■
for accounting purposes as the title transfers at the end of the lease term or the lease
contains a bargain purchase option. All assets acquired with capital leases total ■
$373,449 and are included in the General Fixed Asset Account Group. ■
Computer Aided Dispatch: The City entered into a lease agreement in the amount of ■
$1,759,561. The lease proceeds together with $300,000 of available funds provide
the financing for Police information equipment. At year end, the lease proceeds are
held in escrow as restricted cash totaling $1,541,086 and will be used for each phase
of the police information equipment installation. The equipment is pledged as ■
collateral. The lease is payable in five annual installments ending in July 2001. The
lease bears interest at the rate of 5.33% ■
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, 1997, are as follows:
■
Year Ending
Certificates of
Note
Capital
June 30
Participation
Payable
Leases
Total
■
1998
$588,685
$236,372
$450,856
$1,275,913
■
1999
584,085
236,372
440,190
1,260,647
■
2000
584,185
236,372
430,703
1,251,260
2001
583,685
236,372
427,540
1,247,597
■
2002
587,400
236,372
413,877
1,237,649
Thereafter
9,982,180
2,941,307
-
12,923,487
■
12,910,220
4,123,167
2,163,166
19,196,553
■
Less: amount repre-
■
senting interest
(5.970,220)
(1,309,463)
(310,139)
(7,589,822)
■
$6.940.000
S1813-704 704
$1 $x,3.027
511.606.731
■
■
■
■
■
■
■
■
30
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
Proprietary Funds Long -Term Debt
Enterprise Fund
A summary of changes in long -term debt of the enterprise funds is as follows:
Balance
Balance
July 1, 1996 Additions
Retirements June 30, 1997
2000
Water Revenue Bonds $16,280,000 $
$845.000 $15,435,000
Less current portion (845,000)
(875,000)
Total long -term $15 435 000
$14560.000
The current portion in the accompanying General Purpose Financial Statements includes
principal of $875,000 and accrued interest payable of $415,711 for a total of
$1,290,711.
• Water Revenue Bonds
In 1995, the City issued $17,100,000 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, 1997, the City has a required cash reserve
balance of $1,732,775 which is recorded as a restricted asset. Fifteen annual
principal payments are payable on August 1, and semiannual interest payments are
payable on February 1 and August 1. At June 30, 1997, the outstanding principal
balance was $15,435,000, and accrued interest payable was $415,711.
Water revenue bond debt service requirements to maturity, including $5,991,553 of
interest are as follows:
Year Ending
June 30 Amount
1998
$1,682,905
1999
1,674,799
2000
1,664,543
2001
1,657,003
2002
1,651,909
Thereafter
13,095,394
Total
$21.426.553
31
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 current trends and ■
information. While the ultimate amount of losses incurred through June 30, 1997 is
dependent on future developments, based upon information from the City's attorneys, ■
the.City's claims administrators and others involved with the administration of the
programs, City management believes the accrual is adequate to cover such losses. ■
The estimated liability at June 30, 1997, amounted to $8,186,374.
• 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, ■
1997, is $7,442,767.
■
• Capital Leases
■
Rolling Stock Leases - Equipment Maintenance Internal 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 each lease ■
is between 4.98% and 6.98 %. The lease agreements qualify as capital leases for
accounting purposes as the title transfers at the end of the lease term or the lease ■
contains a bargain purchase option. The assets acquired, totaling $2,394,942, were
classified as equipment in the Equipment Maintenance Internal Service Fund. ■
■
32
■
■
■
■
CITY OF NEWPORT BEACH
Notes to
General Purpose Financial Statements
■
June 30, 1997
■
Internal Service Funds
■
A summary of changes in long -term debt of the internal service
funds is as
follows:
■
■
Balance
Deductions/
Balance
July 1, 1996 Additions
Retirements
June 30, 1997
■
Claims and judgments
■
payable
$8,011,733 $3,499,035
$3,324,394
$8,186,374
Compensated absences
7,234,648 1,793,631
1,585,512
7,442,767
■
Capital leases
820,515 933,437
536,852
1,217,100
■
16,066,896 $6.226.103
$5.446.758
16,846,241
Less current portion
(3,827,341)
(4,236,852)
■
Total long -term
$12.239,555
$12 609 389
■
• 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 current trends and ■
information. While the ultimate amount of losses incurred through June 30, 1997 is
dependent on future developments, based upon information from the City's attorneys, ■
the.City's claims administrators and others involved with the administration of the
programs, City management believes the accrual is adequate to cover such losses. ■
The estimated liability at June 30, 1997, amounted to $8,186,374.
• 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, ■
1997, is $7,442,767.
■
• Capital Leases
■
Rolling Stock Leases - Equipment Maintenance Internal 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 each lease ■
is between 4.98% and 6.98 %. The lease agreements qualify as capital leases for
accounting purposes as the title transfers at the end of the lease term or the lease ■
contains a bargain purchase option. The assets acquired, totaling $2,394,942, were
classified as equipment in the Equipment Maintenance Internal Service Fund. ■
■
32
■
■
■
■
CITY OF NEWPORT BEACH
■
Notes to General Purpose Financial Statements
June 30, 1997
■
Annual Amortization Requirements of Internal Service Fund Capital Lease Obligations
■
The annual requirements to amortize outstanding capitalized
lease obligations
■
included in the Internal Service Fund as of June 30, 1997, are as follows:
■
Year Ending Capital
June 30 Leases
■
1998 $514,255
■
1999 377,888
2000 277,267
■
2001 192,696
1,362,106
■
Less: amount repre-
senting interest (145,006)
■
$1 217 100
■
(5) Special Assessment Districts Bonds
■
The City holds reserve funds on behalf of bondholders; the assets are recorded in the
■
Special Assessment Agency Fund. Bonds outstanding at June 30, 1997 for each district
under the Bond Acts of 1911 and 1915, and other special assessments,
are as follows:
■
Bonds
Original
Outstanding
■
Assessment District Issue
June 30, 1997
■
No. 56 China Cove $145,254
$10,570
No. 57 Corona Highlands 938,598
345,993
■
No. 58 Cannery Village 107,746
55,000
No. 59 McFadden Square 530,609
405,000
■
No. 60 Bay Avenue 236,533
185,000
No. 61 East Bay Front 127,299
100,000
■
No. 62 Hazel Drive 335,210
260,000
No. 63 Newport Island 536,531
435,000
■
No. 64 Channel Road 180,794
174,000
No. 65 Rocky Point 53,125
41,000
■
No. 66 East Newport 171,911
145,000
No. 67 CDM Blk -133 64,431
61,000
■
No. 71 Balboa Blvd. 796,942
796,942
■
No. 72 Balboa Coves 192,908
190,001
No. 95 -1 CIOSA A 7,500,000
6,740,000
■
No. 95 -1 CIOSA B 9,335,000
9,335,000
■
Although the City collects and disburses funds for these districts,
the City has no
obligation or duty to pay any delinquency out of any available funds of
the City. Neither
■
the faith and credit nor the taxing power of the City is pledged to the
payment of the
■
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33
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30. 1997
bonds, and therefore the bonded indebtedness is not shown in the financial statements of
the City.
(6) Risk Management -General Liability and Workers' Compensation
The City is exposed to various risks of loss related to torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries to employees, and natural disasters.
The City carries commercial insurance with independent third parties for loss risks
associated with real and personal property, and automotive liability. The City purchases
fidelity bonds for employees in key positions. Settled claims from these risks have not
exceeded commercial insurance coverage for the past three years. For general liability,
the City has excess insurance coverage of $20 million per occurrence with a self- insured
retention (SIR) of $1 million per occurrence.
For workers' compensation and employer's liability insurance, the City has excess
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 an 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 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
$1,430,000 which represents the discounted present value at June 30, 1997; the claims
were discounted using an interest rate of six percent.
Unpaid claims, beginning of fiscal year
Incurred claims (including IBNR's)
Claim payments
Unpaid claims, end of fiscal year
(7) Deferred Compensation Plan
June 30, 1996 June 30, 1997
$9,656,371
$8,011,733
2,929,565
3,499,035
(4,574,203)
(3,324,394)
$8,011.733
$8.18 374
The City offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all City employees, permits
them to defer a portion of their salary until future years. The deferred compensation is not
available to employees until termination, retirement, death, or unforeseeable emergency.
34
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CITY OF NEWPORT BEACH
■ Notes to General Purpose Financial Statements
June 30, 1997
■
■
■ All amounts of compensation deferred under the plan, all property and rights purchased
with those amounts, and all income attributable to those amounts, property, or rights are
■ (until paid or made available to the employee or other beneficiary) solely the property and
rights of the City (without being restricted to the provisions of benefits under the plan),
■ subject only to the claims of the City's general creditors. Participants' rights under the
plan are equal to those of general creditors of the City in an amount equal to the fair
■ market value of the deferred account for each participant.
■ Recently approved federal legislation will require that Section 457 plan assets be held in
trust for employees. This change, expected to be implemented by 1998, will mean that
■ employee assets held in Section 457 plans will no longer legally remain the property of the
City. At that time, they will no longer be subject to claims of the City's general creditors.
■
The City has no liability for losses 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 general
■ creditors in the future. The assets under the plan are reported at market value in an
■ Agency Fund and totaled $30,353,588 at June 30, 1997.
■ (8) Retirement Plans
■ Plan Description - Defined Benefit Plan
■ The City contributes to the California Public Employees' Retirement System (PERS), an
agent multiple - employer public employee retirement system that acts as a common
■ investment and administrative agent for participating public entities within the State of
California. The City's covered payroll for employees participating in the System for the
■ year ended June 30, 1997 was $38,340,048. The total payroll for the year was
$42,016,656.
■
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:
■
■
■ 35
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■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements ■
June 30, 1997
■
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 month. ■
The City is required to contribute the remaining amounts necessary to fund the benefits ■
for its members, using the actuarial basis recommended by the PERS actuaries and
actuarial consultants and adopted by the Board of Administration. ■
Funding Status and Progress ■
The amount shown below as the "pension benefit obligation" is a standardized measure of ■
the present value of pension benefits, adjusted for the effects of step -rate benefits, ■
estimated to be payable in 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: ■
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 ■
■
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
Net Assets Available for Benefits at cost
(Market Value is $174,657,871) 164,306.557
Assets in Excess of Pension Benefit Obligation $8.833.051
In 1995, the City reported accumulated assets in excess of pension benefit obligation of
$21,953,868 (based on information provided by PERS).
Actuarially Determined Contribution Requirements and Contribution Made
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit cost
method. That is, it takes into account those benefits that are expected to be earned in the
future as well as those already accrued. According to this cost method, the normal cost
for an employee is the level amount which would fund the projected benefit if it were paid
annually from date of employment until retirement. PERS uses a modification of the Entry
Age Cost Method in which the employer's total normal cost is expressed as a level
percentage of payroll. PERS also uses the level percentage of payroll method to amortize
any unfunded actuarial liabilities. The amortization period of the unfunded actuarial
liability ends in the year 2000 for prior service benefits and in the year 2000 for current
service benefits.
The significant actuarial assumptions used to compute the actuarially determined
contribution requirement are the same as those used to compute the pension benefit
obligation, as previously described.
The contributions to the System for fiscal year ended June 30, 1997 of $5,817,333 were.
made in accordance with actuarially determined requirements computed through an
actuarial valuation performed as of June 30, 1996. The contribution consisted of (a)
$5,362,883 normal cost (14.4% of current covered payroll) and (b) $95,634 amortization
of the unfunded actuarial accrued liability (.2% of current covered payroll). The City
contributed employer contribution of $2,529,997 (6.8% of current covered payroll); and on
behalf of employees $2,928,520 (7.8% of current covered payroll). Of these amounts,
$851,276 was funded by PERS surplus accounts.
Trend Information
Trend information gives an indication of the progress made in accumulating sufficient
assets to pay benefits when due. Within the City's financial statement, presentation of ten
years of historical trend information is required. 1988 is the first year that this actuarial
information has been made available by PERS. For all years presented, contributions
were made in accordance with actuarially determined requirements. Until ten years of
data are available, as many years as are available are presented as follows, in thousands
(unaudited):
37
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■
Plan Description - Defined Contribution Plan ■
As of January 1 1992 the City entered into a defined contribution plan with Public Agency ■
Retirement System ( "PARS ") for all of its part-time employees. In a defined contribution ■
plan, benefits depend solely on amounts contributed to the plan plus investment earnings.
All part-time employees are eligible to participate from the date of employment. Federal ■
legislation requires contributions of at least 7.5% to a retirement plan, and City Council
resolved to match the employees' contributions of 3.75 %. The City's contributions for ■
each employee (and interest earned by the accounts) are fully vested immediately.
■
For the year ended June 30, 1997, the City's covered payroll for employees participating
in the plan was $2,056,802. The City made employer contributions of $77,130 (3.75% of ■
current covered payroll). Assets of the plan totaling $1,224,551 at June 30, 1997 are
reported as deposits in the Deferred Compensation Agency Fund. As of June 30, 1997, ■
there were 257 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
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 and liabilities pertaining to the program are recorded in the Deferred ■
Compensation Fund.
■
38 ■
■
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
■
June 30, 1997
■
(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 / 2
(21 -0) Payroll
M/(5) 5
Contributions
1ZM
■
1988
$66,906
$68,264
98.0%
$1,358 $23,600
5.8%
$2,390
10.1%
■
1989
76,117
75,332
101.0%
(785) 25,192
(3.1 %)
2,111
8.4%
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
104,012
105,027
99.0%
1,015 32,482
3.1%
3,143
9.7%
■
1993
114,807
118,077
97.2%
3,270 33,369
9.8%
2,991
9.0%
1994
126,813
121,320
104.5%
(5,493) 33,544
(16.4°/x)
2,983
8.9%
■
1995
154,866
132,912
116.5%
(21,954) 37,406
(58.7 %)
2,697
7.2%
1996
164,307
155,474
105.6%
(8,833) 37,147
(23.7 %)
2,530
6.8%
■
The pension update through June 30, 1997 was not available from the
multiple - employer
PERS.
■
Plan Description - Defined Contribution Plan ■
As of January 1 1992 the City entered into a defined contribution plan with Public Agency ■
Retirement System ( "PARS ") for all of its part-time employees. In a defined contribution ■
plan, benefits depend solely on amounts contributed to the plan plus investment earnings.
All part-time employees are eligible to participate from the date of employment. Federal ■
legislation requires contributions of at least 7.5% to a retirement plan, and City Council
resolved to match the employees' contributions of 3.75 %. The City's contributions for ■
each employee (and interest earned by the accounts) are fully vested immediately.
■
For the year ended June 30, 1997, the City's covered payroll for employees participating
in the plan was $2,056,802. The City made employer contributions of $77,130 (3.75% of ■
current covered payroll). Assets of the plan totaling $1,224,551 at June 30, 1997 are
reported as deposits in the Deferred Compensation Agency Fund. As of June 30, 1997, ■
there were 257 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
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 and liabilities pertaining to the program are recorded in the Deferred ■
Compensation Fund.
■
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
(10) Post - Employment Health Care Benefits
As established by a City Council approved Memorandum of Understanding between the
City and its employees, the City provides post - employment health care benefits.
Employees who retire 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 and PERS. The City pays 50% of
total plan premiums charged under the Health Net plan while the active and retired
employees split the remaining premium at a rate of 25% each. The City pays an
accelerating portion of the PERS premium capping at $400 a month while the retired
employees pay the remaining portion of the PERS premium. This program is funded on a
pay -as- you -go basis. The City's expenditures for post - employment health care benefits
for fiscal years 1996 -97 and 1995 -96 were $237,208 and $232,304, respectively. As of
June 30, 1997, 293 participants were eligible to receive benefits.
(11) Interfund Receivables and Payables
At June 30, 1997, interfund receivables and payables were as follows:
Due From Due To
Other Funds Other Funds
General Fund $2,252,527
Special Revenue Funds
Community Development Block Grant
$111,131
Tide and Submerged Land
78,276
Contributions
67,105
256,512
Capital Projects Fund:
CIOSA Construction
798,976
Enterprise Fund:
Cannery Village
510,751
Internal Service Fund:
Insurance Reserve
686,288
Total $2.252.527 $2-252527
39
CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
(12) Changes in Contributed Capital
Contributed capital of the Enterprise Funds was unchanged as follows:
Balance, July 1, 1996
Balance, June k 1997
Water
Wastewater
Total
ragmelaguirA
Contributed capital of the Internal Service Funds was unchanged as follows:
Equipment
Balance, July 1, 1996 $4.097.648
Balance, June 30, 1997 $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 $2,167,523 $3,986,023 $7,063,846 $13,217,392
Inventories 192,642 192,642
Long -Term Receivable 200,000 200,000
Debt Service $579,851 579,851
Designations established as of June 30, 1997 are as follows:
Special
General Revenue
Fund Funds
Capital
Projects
Funds Total
Contingencies $6,424,629 $6,424,629
Special Projects 2,071,387 $3,868,833 $- 5.940.220
Total Designated $8.496.016 $3,868-833 $- $12.364 849
(14) Special Revenue Fund Budget to Actual Schedule
No budget was adopted for the Environmental Liability Fund because no activity for this
fund was planned at the time the 96/97 budget was adopted. No budget was adopted for
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
the Miscellaneous Grants Fund because the fund was created after the 96/97 budget was
adopted. Therefore, the activities of these funds are not included in the Combined
Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and
Actual. In order to reconcile the Combined Statement of Revenues, Expenditures, and
Changes in Fund Balance (GAAP basis), the fund balance for the above mentioned
Special Revenue funds should be included as follows:
Fund balance on a budgetary basis $14,718,054
Add reconciling items:
Environmental Liability 142,254
Miscellaneous Grants 49.971
Fund balance on a GAAP basis $14.910.279
(15) Segment Information for Enterprise Activities
There are three services provided by the City which are financed primarily by user
charges: parking, water services and sewer services. These services are accounted for in
separate enterprise funds.
The key financial data for the year ended June 30, 1997 for these Enterprise Funds are as
follows:
Cannery
Village
Parking Water Wastewater Total
Operating revenues
$75,210
$17,550,087
$2,547,314
$20,172,611
Operating expenses:
Depreciation
4,299
1,288,087
739,189
2,031,575
Other
14,651,987
1,368,862
16,020,849
Operating income
70,911
1,610,013
439,263
2,120,187
Net non - operating
revenue (expense)
(159,541)
148,793
(10,748)
Net income before
operating transfers
70,911
1,450,472
588,056
2,109,439
Operating Transfers In
14,249
14,249
Net income
70,911
1,450,472
602,305
2,123,688
Property, plant
and equipment:
Additions
7,861,512
721,416
8,582,928
(Deletions)
(4,100)
(4,100)
Net working capital
(510,751)
9,189,738
2,990,353
11,669,340
Total assets
1,109,139
52,831,065
12,855,889
66,796,093
Outstanding long -term
liabilities
14,560,000
14,560,000
Total equity
598,388
33,933,994
12,753,678
47,286,060
41
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CITY OF NEWPORT BEACH
Notes to General Purpose Financial Statements
June 30, 1997
(16) Individual Fund Disclosures ■
At June 30, 1997, the Contributions Special Revenue Fund had a deficit fund balance of
$55,521. The deficit will be eliminated by future revenues or transfers from other funds.
In addition, the accumulated deficit of $16,825,975 in the Insurance Reserve Internal
Service Fund is expected to be eliminated by future interdepartmental charges.
Expenditures exceeded approximations in the Circulation and Transportation and
Miscellaneous Grants Special Revenue Funds.
(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) 0
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 $4,855,106 had been
received and expended as of June 30, 1997. 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, 1997, the City received $367,252 of Fair
Share Fees, and $183,626 has been accrued or paid. No additional liability has been
recorded, because any future repayment is uncertain; any amounts not repaid by
February 20, 2016 will be forgiven.
The City is a participant with the Orange County Fire Authority, the County of Orange, and
other Orange County cities to build and maintain a communications system utilizing the
800 megahertz band. Although the City has not entered into a related financing
agreement, the City's portion of infrastructure field equipment and shared services
through June 30, 2000 is expected to total $2,526,729. Through June 30, 1997, $531,680
has been paid. ■
(18) Subsequent Events ■
On July 1, 1997, the City increased the coverage for public liability insurance from $20
million to $25 million per occurrence. We also decreased our self- insured retention (SIR)
from $1 million to $750,000. This coverage provides for personal injury, property damage
and public entity errors and omissions.
42 0
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Supplementary Information
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CITY OF NEWPORT BEACH
Comparative Balance Sheets - General Fund
June 30, 1997
Assets
Cash and investments
Accounts receivable and accrued revenues
Due from other governments
Allowance for doubtful accounts
Due from other funds
Inventories of material and supplies, at cost
Restricted assets - cash and investments
Other assets
Notes receivable
Total Assets
Liabilities and Fund Balance
Liabilities:
Accounts payable and accrued liabilities
Accrued payroll
Deferred revenue
Deposits
Total Liabilities
Fund Balance:
Reserved:
Reserved for encumbrances
Reserved for inventories
Reserved for long -term receivable
Unreserved:
Designated for special projects
Designated for contingencies
Total Fund Balance
Total Liabilities and Fund Balance
43
1997
1996
$ 8,223,937
$ 6,990,465
1,803,166
1,918,501
1,791,682
2,397,767
1,536,273
(446,381)
2,252,527
4,556,282
192,642
139,614
1,541,086
2,167,523
99,159
119, 009.
200,000
200,000
$ 16,104,199 $ 15,875,257
$ 1,751,039
$ 1,215,828
1,133,348
1,323,336
627,358
468,362
1,536,273
1,637,057
5,048,018
4,644,583
2,167,523
2,129,127
192,642
139,614
200,000
200,000
2,071,387
2,988,205
6,424,629
5,773,728
11,056,181
11,230,674
$ 16,104,199 $ 15,875,257
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CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures
,
and Changes in Fund Balance - Budget and Actual
General Fund
■
For the Year Ended June 30, 1997
■
1997
1996
Variance
■
Favorable
Budget
Actual
(Unfavorable)
Actual
■
Revenues:
Taxes
$ 44,436,360 $
44,523,935
3 87,575 5
42,853,480
■
Licenses, fees and permits -
1,673,334
1,840,024
166,690
1,663,469
Intergovernmental revenue
4,797,001
4,834,966
37,967
4,728,973
■
Charges for services
7,718,836
7,180,468
(538,368)
6,020,272
Fines, forfeitures and penalties
2,520,000
2,364,662
(155,338)
2,795,045
'
Revenue from use of
money and property
5,382,060
5,069,125
(312,935)
5,792,454
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Contributions
415,727
303,111
(112,616)
146,457
Other
247,000
284,061
37,061
150,579
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Total Revenues
67,190,318
66,400,354
(789,964)
64,150,729
■
Expenditures:
.
Current:
General government
5,487,548
5,673,321
(185,773)
5,442,862
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Public safety
35,099,121
35,531,168
(432,047)
34,173,622
Public works
15,100,537
15,015,995
64,542
14,250,842
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Community development
2,768,323
2,735,997
32,326
2,716,712
Community services
5,948,492
5,717,501
230,991
5,670,170
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Capital Outlay
8,321,503
7,300,300
1,021,203
4,608,037
Debt Service:
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Principal
53,543
53,543
166,902,
Interest and fiscal charges
8,963
8,963
74,386
.
Total Expenditures
72,788,030
72,036,788
751,242
67,103,533
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Excess(Deficiency)of Revenues
Over (Under) Expenditures
(5,597,712)
(5,636,434)
(38,722)
(2,952,804)
■
Other Financing Sources (Uses):
■
Operating transfers in
5,000,281
4,673,525
(126,756)
6,245,683
Operating transfers out
(1,499,391)
(1,489,704)
9,687
(580,430)
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Proceeds from long -term debt
1,625,176
1, 825,176
Proceeds from sale of assets
25,500
252,944
227,444
33,978
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Total Other Financing Sources (Uses) 3,526,390
5,461,941
1,935,551
5,699,231
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Excess (Deficiency) of Revenues
■
and Other Financing Sources
Over (Under) Expenditures
■
and Other Financing Uses
- (2,071,322)
(174,493)
1,896,829
2,746,427
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Fund Balance, July 1
11,230,674
11,230,674
8,484,247
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Fund Balance, June 30
$ 9,159,352 $
11,056,181
$ 1,896,829 $
11,230,674
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44
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Special
Revenue
],ands
W
M
0
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources
which are legally restricted to expenditures for specified purposes. City of Newport Beach
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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 maintenance 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 for enhancement of law enforcement programs.
The Tide and Submerged Land Fund is used to account for all revenues and expenditures related
to the operation of the City's tidelands, including beaches and marinas.
■
The Contributions Fund is used to account for revenues received from other government agencies
or private developers and expended for specific street or highway construction projects.
The 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 Excise Tax Fund is used to account for revenues received from builders or
developers on building or remodeling projects within the City. Expenditures from this fund are used
exclusively for public safety, libraries, parks, beaches, or recreational activities.
The Combined Transportation Fund is used to account for the revenues and expenditures of
funds received from the Orange County Combined Transportation Funding Program. Expenditures
from this fund are used exclusively for transportation related purposes.
The Community Development Block Grant Fund is used to account for revenues and
expenditures relating to the City's Community Development Block Grant program. These funds are
received from the Federal 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 disbursement of funds
received from the Ackerman Trust. These funds are split between the City and the University of
California, Irvine. The City's portion must be used for library and scholarship purposes.
■
The Air Quality Management District Fund is used to account for revenues received from the
South Coast Air Quality Management District restricted for the use of reducing air pollution.
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.
.
The Supplemental Law Enforcement Services Fund (SLESF) is used to account for revenues
received from the county to be used exclusively for front line law enforcement services.
Misc. Grants Fund is used to account for all other short-term grant programs.
0
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45
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Special Revenue Funds
June 30, 1997
Liabilities and Fund Balances
Tide and
Circulation
Building
State
Asset
Submerged
and
Excise
Gas Tax
Forfeiture
Land
Contributions Transportation
Tax
Assets
.
and accrued liabilities
$ 186,360 $
1,712 $
Cash and investments
$ 4,172,927
$ 38,517
$ 764
$ 8,960,960
$ 226,693
Accounts receivable
15,322
Due to other funds
and accrued revenues
78,276
358,032
$ 32,011
Lease receivable
Due from other governments
Deposits
318
69,363
187,566
Allowance for doubtful accounts
Total Liabilities
186,360
1,712
430,171
Other assets
364,073
1;088
2,012
Total Assets
$ 4,172,927
$ 38,835
$ 430,171
$ 32,011 $ 8,960,960
$ 226,693
Liabilities and Fund Balances
Liabilities:
Accounts payable and
.
and accrued liabilities
$ 186,360 $
1,712 $
149,007 $
20,427 $
364,073
$. 1,088
Accrued payroll
15,322
Due to other funds
78,276
67,105
Deferred revenue
Deposits
187,566
Total Liabilities
186,360
1,712
430,171
87,532
364,073
1;088
Fund Balances:
Reserved for encumbrances
597,074
4,399
2,017,760
15,926
Unreserved:
..
Designated for special projects
3,389,493
32,724
Undesignated
(55,521)
6,579,127
209,679
Total Fund Balances
3,986,567
37,123
(55,521)
8,596,887
225,605
Total Liabilities and
Fund Balances
$ 4,172,927 $
38,835 $
430,171 $
32,011 $
8,960,960
$ 226,693
46
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Community Air Quality Supplemental
Combined Development Ackerman Management Environmental Law Misc Totals
Transportation Block Grant Donation District Liability Enforcement Grants 1997 1996
$ 867,074 $ 131,902 $ 334,605 $ 142,254 $ 131,579 $ 49,971 $ 15,057,246 $ 14,716,045
390,043 551,928
814,000 814,000 888,000
2,953,521 $ 171,378 17,884 3,212,464 3,796,449
(343,417)
2,012 77,231
$ 3,820,595 $ 171,378 $ 945,902 $ 352,489 $ 142,254 $ 131,579 $ 49,971 $ 19,475,765 $ 19,686,236
$ 926,467 $ 60,247 $ 10,025
111,131
1,571,420
814,000
2,497,887 171,378 824,025
1,322,708 27,750
94,127 $ 352,489
$ 142,254
1,322,708 121,877 352,489 142,254
$ 1,260 $ 1,720,666 $ 667,533
15,322 1,390
256,512 371,120
2,385,420 3,982,206
187,566 170,420
1,260 4,565,466 5,192,669
406 3,986,023
2,423,814
3,868,833
12,274,295
129,913 $ 49,971 7,055,423
(204,542)
130,319 49,971 14910,279
14,493,567
$ 3,820,595 $ 171,378 $ 945,902 $ 352,489 $ 142,254 $ 131,579 $ 49,971 $ 19,475,765 $ 19,686,236
47
City of Newport Beach
$ 103,232
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
All Special Revenue Funds
2,587
4,453,084
For the Year Ended June 30, 1997
461,648
-. 9,153
Tide and
Circulation
Building
State Asset Submerged
and
Excise
Gas Tax Forfeiture Land Contributions
Transportation
Tax
489,621
882,673
413,994
Revenues:
Licenses, fees and permits $ 1,166,673 $ 421,025 $ 404,641
Intergovernmental revenue $ 1,272,415 46,586 $ 271,321
Charges for services 4,742
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
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of
Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Operating transfers out
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other Uses
Fund Balances (Deficits), July 1
Fund Balances (Deficits), June 30
48
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$ 103,232
226,850
2,587
4,453,084
461,648
-. 9,153
1,076
218,300
1,499,265
105,819
5,672,161
489,621
882,673
413,994
68,696
275,587
210,513
684,889
1,789,155
143,789
463,304
1,037,357
92;377
105,029
131,343.
1,789,155
68,696
1,340,637
463,304
1,247,870
92;377
(289,890)
37,123
4,331,524
26,317
(365,197)
321,617
(96,000)
(4,331,524)
(80,000)
(385,890)
37,123
26,317
(365,197)
241,617
4,372,457
(81,836)
8,962,084
(16,012)
$ 3,986,567
$ 37,123
$ - $
(55,521) $
8,596,887 $
225,605
48
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35,711 11,672 116,079
Community
486,100
Air Quality
569,482 24,066 593,548
Supplemental
182,945 867,834
246,024
4,220,990 7,746,972
Combined
Development
Ackerman
Management
Environmental
Law
Misc
Totals
Transportation
Block Grant
Donation
District
Liability
Enforcement
Grants
1997
1996
$ 248,946
$ 2,241,485 $
3,188,102
$ 4,643,087
$ 569,482
$ 72,670
$ 160,888
7,036,449
3,586,570
4,742
258,144
$
61,121
164,353
60,018
55,261
$ 5,198
16,291
5,142
522
5,235,736
5,015,935
185,000
404,376
943,821
1,422
4,698,348
569,482
190,198
88,961
248,946
166,030
61,643
15,087,141
13,054,013
35,711 11,672 116,079
397,651
486,100
528,772
569,482 24,066 593,548
235,535
182,945 867,834
246,024
4,220,990 7,746,972
4,606,664
105,029
100,506
131,343
135,866
4,220,990 569,482 182,945 24,066 35,711 11,672 10,046,905
6,251,018
477,358
7,253 64,895
248,946 130,319 49,971 5,040,236
6,802,995
(86,000)
(30,000)
(4,623,524)
(4,895,683)
391,358
7,253
34,895
248,946 130,319 49,971
416,712
1,907,312
931,350
114,624
317,594
(106,692)
14,493,567
12,586,255
$ 1,322,708 $ -
$ 121,877 $
352,489 $
142,254 $ 130,319 $ 49,971
$ 14,910,279
$ 14,493,567
49
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, 1997
Revenues:
Intergovernmental revenue
Revenue from use of
money and property
Total Revenues
Expenditures:
Capital Outlay
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Other Financing Uses:
Operating transfers out
Excess (Deficiency) of
Revenues Over (Under)
Expenditures and Other Uses
Fund Balance, July 1
Fund Balance, June 30
1997
Variance
Favorable
Budget Actual (Unfavorable)
$ 1,214,450 $ 1,272,415 $
120,000 226,850
1,334,450 1,499,265
1996
Actual
57,965 $ 1,252,643
106,850 266,041
164,815 :1,518,684
3,002,117
1,789,155 1,212, 962
(1,667,667)
(289,890) 1,377,777
(96,000)
(96,000)
(1,763,667)
(385,890) 1,377,777
4,372,457
4,372,457
1,332,291:,
186,393
(96,000)
90,393
4,282,064
$ 2,608,790 $ 3,986,567 $ 1,377,777 $ 4,372,457
50
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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, 1997
Expenditures:
Current:
Public safety
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Fund Balance, July 1
Fund Balance, June 30
123,427 68,696 54,731 397,651
1,573 37;123 35,550 (320,996) ..
320,996
$ 1,573 $ 37,123 $ 35,550 $
51
1997
1996
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
Revenues:
Fines, forfeitures and penalties
$ 120,000
$ 103,232
$ (16,768) $
60,018
Revenue from use of
money and property
5,000
2,587
(2,413)
16,637
Total Revenues
125,000
105,819
(19,181)
76,655
Expenditures:
Current:
Public safety
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Fund Balance, July 1
Fund Balance, June 30
123,427 68,696 54,731 397,651
1,573 37;123 35,550 (320,996) ..
320,996
$ 1,573 $ 37,123 $ 35,550 $
51
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, 1997
1997
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
(32,271)
Current:
Licenses, fees and permits
$ 1,172,367
$ 1,166,673 $
Intergovernmental revenue
65,165
46,586
Charges for services
23,000
4,742
Revenue from use of
105,029
Interest and fiscal charges
money and property
4,442,900
4,453,084
Other
1,000
1,076
Total Revenues 5,704,432
Expenditures:
(32,271)
Current:
275,587
Public Works
329,065
Community services
683,112
Capital Outlay
330,298
Debt service:
418,543
Principal
105,029
Interest and fiscal charges
135,866
Total Expenditures
1,583,370
Excess of Revenues
Over Expenditures
Other Financing Uses:
Operating transfers out
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
and Other Uses
Fund Balance, July 1
Fund Balance, June 30
1996
Actual
(5,694) $ 1,073,436
(18,579) 73,167
(18,258) 258,144
10,184 4,193,234
76 1,422
5,672,161
(32,271)
5,599,403
275,587
53,478
287,673
684,889
(1,777)
129,318
143,789
186,509
418,543
105,029
100,506
131,343
4,523
135,866.,
1,340,637
242,733
1,071,906
4,121,062
4,331,524
210,462
4,527,497
(4,409,381)
(4,331,524)
77,857
(4,584,948)
(288,319)
$ (288,319) $
52
288,319 (57,451)
$ 288,319 $
57,451
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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, 1997
Revenues:
Intergovernmental revenue
Revenue from use of money
and property
Contributions
Total Revenues
Expenditures:
Capital Outlay
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Fund Balance, July 1
Fund Balance, June 30
Budget
$ 9,173,626 $
9,173, 626
10,965,076
(1,791,450)
(81, 838)
$ (1,873,288) $
53
1997 1996
463,304 10, 501,772 .1,078,133
26,317 1,817,767 417,938
(81,838) (499,776)
(55,521) $ 1,817,767 $ (81;838)'
Favorable
Actual
(Unfavorable)
Actual
271,321
$ (8,902,305)
$ 734,147
3,103
218,300
218,300
758,821
489,621
(8,684,005)
1,496,071
463,304 10, 501,772 .1,078,133
26,317 1,817,767 417,938
(81,838) (499,776)
(55,521) $ 1,817,767 $ (81;838)'
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, 1997
Revenues:
Licenses, fees and permits $
Revenue from use of
money and property
Total Revenues
Expenditures:
Current:
General government
Public works
Capital Outlay
Total Expenditures
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Fund Balance, July 1
Fund Balance, June 30
1997
$ 8,983,326 $ 8,596,887 $ (386,439) $ 8,962,084
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210,513
Favorable
46,188
Budget
Actual
(Unfavorable)
Actual
500,000 $
421,025
(544,112)
$ 1,799,458
225,000
461,648
$ 236,648
464,484
725,000
882,673
236,648
2,263,942
7,085,715
$ 8,983,326 $ 8,596,887 $ (386,439) $ 8,962,084
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210,513
(210,513)
46,188
703,758
1,037,357
(333,599)
341,385
703,758
1,247,870
(544,112)
387,573
21,242
(365,197)
(386,439)
1,876,369
8,962,084
8,962,084
7,085,715
$ 8,983,326 $ 8,596,887 $ (386,439) $ 8,962,084
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CITY OF NEWPORT BEACH
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
Building Excise Tax Special Revenue Fund
For the Year Ended June 30, 1997
1997 1996
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues
Licenses, fees and permits
$ 287,000
$ 404,841
$ 117,841
$ 226,989
Revenue from use of
money and property
9,000
9,153
153
2,459
Total Revenues
296,000
413,994
117,994
229,448
Expenditures:
Capital Outlay
179,327
92,377
86,950
110,355
Excess of Revenues
Over Expenditures
116,673
321,617
204,944
119,093
Other Financing Uses:
Operating transfers out
(80,000)
(80,000)
(128,735)
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
and Other Uses
36,673
241,617
204,944
(9,642)
Fund Balance (Deficit), July 1
(16,012)
(16,012)
(6,370)
Fund Balance (Deficit), June 30
$ 20,661
$ 225,605
$ 204,944
$ (16,012)
I;V
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, 1997
Revenues:
Intergovernmental revenue
Revenue from use of
money and property
Total Revenues
Expenditures:
Capital Outlay
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Other Financing Uses:
Operating transfers out
Excess (Deficiency) of Revenues
Revenues Over (Under)
Expenditures and Other Uses
Fund Balance, July 1
Fund Balance, June 30
1997
Variance
Favorable
Budget Actual (Unfavorable)
1996
Actual
$ 17,954,298
$ 4,643,087
$ (13,311,211)
$ 1,220,026
40,000
55,261
15,261
46,275
17,994,298
4,698,348
(13,295,950)
1,266,301
16,611,398
4,220,990
12,390,408
1,325,957
1,382,900
477,358
(905,542)
(59,6515)
(86,000)
(86,000)
(86;000)
1,296,900
391,358
905,542
(145,656)
931,350
931,350
1,077,006
$ 2,228,250
$ 1,322,708
$ (905,542)
$ 931,350
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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, 1997
1997
Variance
Favorable
Budget Actual (Unfavorable)
1996
Actual
Revenues:
Intergovernmental revenue $ 1,040,133 $ 569,482 $ (470,651) $ 209,797
Expenditures:
Current:
Community development 1,040,133 569,482 470,651 209,797
Excess (Deficiency)
of Revenues Over
(Under) Expenditures
Fund Balance, July 1
Fund Balance (Deficit), June 30 $ $ $ $
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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. 1997
1997 1996
Variance
Favorable
Budget Actual (Unfavorable) Actual
Revenues
Intergovernmental revenue $
75,000
$ 72,670 $
(2,330)
$ 96,790
Revenue from use of money
and property
5,000
16,291
11,291
15,975
Total Revenues
80,000
88,961
8,961
112,765
Expenditures:
Current:
Community development
34,000
24,066
9,934
25,738 '.
Excess of Revenues
Over Expenditures
46,000
64,895
18,895
87,027 .
Other Financing Sources (Uses):
Operating transfers out
(30,000)
(30,000)
Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other Uses
16,000
34,895
18,895
87,027
Fund Balance, July 1
317,594
317,594
230,567
Fund Balance, June 30 $
333,594
$ 352,489 $
18,895
$ 317,594
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CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for resources used for the acquisition
and construction of capital facilities by the City, except those financed by
Enterprise Funds. City of Newport Beach Capital Projects Funds are as follows:
The Capital Improvement Fund is used to account for the receipt and expenditure of
City funds specifically identified for capital improvement projects.
The Assessment District Fund is used to account for the receipt and expenditure of
funds received from 1911 Act and 1915 Act Assessment Districts for capital
improvement projects.
The CIOSA Construction Fund is used to account for the receipt and expenditure of
funds for the Circulation Improvement and Open Space Agreement (CIOSA). The
improvements include street and frontage improvements.
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61
Assets
Cash and investments
Restricted assets -cash and investments
Total Assets
Liabilities and Fund Balances
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Capital Projects Funds
June 30, 1997
Assessment CIOSA Totals
District Construction 1997 1996
$ 349,284 $ 349,284 $ 212,006
$ 8,003,824 8,003,824 6,576,135
$ 349,284 $ 8,003,824 $ 8,353,108 $ 6,788,141
Liabilities:
Accounts payable and accrued liabilities $
Due to other funds
Total Liabilities
Fund Balances
6,854 $ 30,365 $ 37,219 $ 776,111
798,976 798,976 2,227,346
6,854 829,341 836,195 3,003,457
Reserved for encumbrances
57,803
7,006,043
7,D63,846
3,613,926
Unreserved:
Designated for special projects
170,758'
Unreserved, undesignated
284,627
168,440
453,067
Total Fund Balances
342,430
7,174,483
7,516,913
3,784,684
Total Liabilities and Fund Balances $
349,284
$ 8,003,824
$ 8,353,108
$ 6,788,141
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CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
All Capital Projects Funds
For the Year Ended June 30, 1997
Revenues:
Revenue from use of money
and property
Contributions
Total Revenues
Expenditures:
Capital Outlay
Excess of Revenues
Over Expenditures
Other Financing Sources (Uses):
Operating transfers out
Excess of Revenues and
Other Sources Over
Expenditures and Other Uses
Fund Balances, July 1
Fund Balances, June 30
Assessment
CIOSA
Totals
2,283,985.
District
Construction
1997
1996
$ 342,430
$ 7,174,463 $
7,516,913
$ 3,784,684
$ 164,751 $
164,751 $
162,389
$ 1,216,693
8,000,000
9,216,693
5,298,634
1,216,693
8,164,751
9,381,444
5,461,023
1,086,143
4,563,072
5,649,215
2,077,058
130,550
3,601,679
3,732,229
3,383;965
(1,100, 000)
130,550
3,601,679
3,732,229
2,283,985.
211,880
3,572,804
3,784,684
1,500,719
$ 342,430
$ 7,174,463 $
7,516,913
$ 3,784,684
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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, 1997
Revenues:
Revenue from use of money
and property
Contributions
Total Revenues
Expenditures:
Capital Outlay
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Fund Balance, July 1
Fund Balance, June 30
1997 1996
Variance
Favorable
Budget Actual (Unfavorable) Actual
$ 4,074,369
4,074,369
12,856,932
164,751 $ 164,751 $ 162,389
8,000,000 3,925,631 4,997,591
8,164,751 4,090,382 5,159,980
4,563,072 8,293,860 1,587,176
(8,782,563) 3,601,679 12,384,242 3,572,804
3,572,804 3,572,804
$ (5,209,759) $ 7,174,483 $ 12,384,242 $ 3,572,804
65
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ENTERPRISE FUNDS
Enterprise Funds are used to account for City operations that are financed and
operated in a manner similar to private business enterprises. The objective of
segregating activities of this type is to identify the costs of providing the
services, and to finance them through user charges. City of Newport Beach
Enterprise funds are those listed below:
The Cannery Village Parking Fund is used to account for the revenues and expenses
of operating the Cannery Village parking facility.
The Water Fund is used to account for the activities associated with the transmission
and distribution of potable water by the City to its users.
The Wastewater Fund is used to account for the activities associated with providing
sewer services by the City to its users.
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67
CITY OF NEWPORT BEACH
Combining Balance Sheet
All Enterprise Funds
June 30, 1997
Assets
Current Assets:
Cash and investments
Accounts receivable and accrued revenues
Due from other governments
Allowance for doubtful accounts
Inventories of materials and supplies, at cost
Restricted assets - cash and investments
Total Current Assets
Fixed Assets:
Land
Structures
Equipment
Accumulated depreciation
Net Fixed Assets
Total Assets
Liabilities and Fund Equity
Current Liabilities:
Accounts payable and accrued liabilities
Accrued payroll
Due to other funds
Deposits
Accrued interest payable
Bonds payable - current
Total Current Liabilities
Noncurrent liabilities:
Bonds payable
Total liabilities
Fund Equity:
Contributed capital
Retained Earnings
Total Fund Equity
Total Liabilities and Fund Equity
Cannery
Village
Parking Water Wastewater
$ 8,658,970 $ 2,662,687
3,083,989 429,877
51,075
1,732,775
$ 1,109,139 $ 52,831,065 $ 12,855,889
$ 2,914,521 $ 86,102
43,665 16,109
$ 510,751
13,526,809
3,092,564
$ 1,039,163
2,016,450
107,471
60,336,766
32,595,593
4,337,071
627,374
43,797
(37,495)
(23,676,334)
(22,876,065)
1,109,139
39,304,256
9,763,325
$ 1,109,139 $ 52,831,065 $ 12,855,889
$ 2,914,521 $ 86,102
43,665 16,109
$ 510,751
$ 1,109,139 $ 52,831,065 $ 12,855,889
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88,174
415,711
875,000
510,751
4,337,071
102,211
14,560,000
510,751
18,897,071
102,211
5,060,494
9,145,593
598,388
28,873,500
3,608,085
598,388
33,933,994
12,753,678
$ 1,109,139 $ 52,831,065 $ 12,855,889
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Totals
1997 1996
$ 11,321,657
$ 16,882,724
3,513,866
3,304,949
671,171
2,543,302
(46,589,894)
(2,543,302)
51,075
44,110
1,732,775
1,733,358
16,619,373 21,965,141
3,055,613
3,055,613
93,039,830
84,461,002
671,171
671,171
(46,589,894)
(44,562,419)
50,176,720
43,625,367
$ 66,796,093
$ 65,590,508
$ 3,000,623
$ 2,989,233 .
59,774
49,644
510,751
585,961
88,174
84,878
415,711
438,420
875,000
845,000
4,950,033
4,993,136
14, 560, 000 15,435, 000
19,510,033 20,428,136
14,206,087 14,206,087
33,079,973 30,956,285
47,286,060 45,162,372
$ 66,796,093 $ 65,590,508
Cf]
CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
All Enterprise Funds
For the Year Ended June 30, 1997
Cannery
Village
Parking Water
Operating Revenues:
Charges for services
Other
Total Operating Revenues
Operating Expenses:
Purchase of water
Salaries and wages
Depreciation
Professional services
Maintenance and supplies
Systems maintenance
Other
Total Operating Expenses
Operating Income
Nonoperating Revenues (Expenses):
Intergovernmental revenue
Interest income
Other income
Gain on sale of fixed assets
Interest expense
Total Nonoperating
Revenues (Expenses)
Income Before
Operating Transfers
Operating Transfers In
Net Income
Retained Earnings, July 1
Retained Earnings, June 30
$ 75,210
$ 16,972,378
577,709
17,550,087
8,584,291
Wastewater
$ 2,547,314
1,978,503
699,310
4,299 1,288,087
739,189
1,695,080
298,166
492,912
340,648
1,447,993
30,738
453,208
4,299 15,940,074
2,108,051
70,911 1,610,013
439,263
610,010 120,979
61,684 27,814
186
(831,421)
(159,541) 148,793
70,911 1,450,472 588,056
14,249
70,911 1,450,472
527,477 27,423,028
$ 598,388 $ 28,873,500
70
602,305
.s,ouo,uao
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Totals
1997 1996
$ 19,519,692 $ 16,851,927
652,919 171,319
20,172,611 17,023,246
8,584,291
2,677,813
2,031,575
1,993,246
833,560
1.478.731
453,208
18,052,424
2,120,187
730,989
89,498
186
(831,421)
8,141, 732
2,592,691
1,850,626
1,310,999
790,876
1,066,507
602,010
16,355,441
667,805
31,110
1,440,412
34,956
(305,274)
(10,748) 1,201,204
2,109, 439 1,869,009
14,249
2,123,688 1,869,009
30,956,285 29,087,276
$ 33,079,973 $ 30,956,285
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CRY OF NEWPORT BEACH
Combining Statement of Cash Flows
- All Enterprise Funds
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For the Year Ended June
30, 1997
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Cannery
Village
■
Parking
Water
Cash flows from operating activities
■
Operating income
$ 70,911
$ 1,610,013
Adjustments to reconcile operating income
■
to net cash provided by operating activities:
■
Depreciation
4,299
1,288,087
Intergovernmental revenue
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Other revenue
61,684
Changes in operating assets and liabilities:
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(Increase) decrease in accounts receivable
(212,786)
(Increase) decrease in inventories of materials
■
and supplies, at cost
(6,965)
Increase (decrease) in accounts payable
(47,803)
■
Increase (decrease) in accrued payroll
6,658
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Increase(decrease)in due to other funds
(75,210)
Increase (decrease) in deposits
3,296
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Total adjustments
(70,911)
1,092,171
Net cash provided by operating activities
2,702,184
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Cash flows from capital and related
■
financing activities:
Operating transfers In
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Cash flows from capital and related
■
financing activities:
Acquisition of capital assets
(7,861,512)
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Principal payment
(845,000)
Proceeds from sale of capital assets
186
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Interest paid
(854,130)
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Net cash provided by (used for) capital and
related financing activities
(9,560,456)
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Cash flows from investing activities:
Interest on investments
610,010
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Net increase (decrease) in cash
■
and cash equivalents
(6,248,262)
Cash and cash equivalents, July 1
16,640,007
■
Cash and cash equivalents, June 30
$
$ 10,391,745
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Noncash Activities:
Contributed Capital
$
$
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Capitalized interest
$ -
$ -
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14,249 14,249
(721,416)
Totals
(12,505,445)
Wastewater
1997
1996
$ 439,263 $
2,120,187 $
667,805
(854,130)
(898,878)
739,189
2,031,575
1,850,626
120,979
730,989
31,110
27,814
89,498
34,956
3,869
(208,917)
(220,032)
$ 2,662,687
(6,965)
$ 18,616,082
59,193
11,390
1,193,144
3,472
10,130
$ 571,566
(75,210)
(75,861)
3,296
(12,965)
833,537
1,854,797
2,800,978
1,272,800
3,974,984
3,468,783
14,249 14,249
(721,416)
(8,582,928)
(12,505,445)
(845,000)
(820,000)
186
(854,130)
(898,878)
(721,416)
(10,281,872)
(14,224,323)
120,979
730,989
1,440,412
686,612
(5,561,650)
(9,315,128)
1,976,075
18,616,082
27,931,210
$ 2,662,687
$ 13,054,432
$ 18,616,082
$
$ -
$ 306,760
$
$
$ 571,566
73
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CITY OF NEWPORT BEACH
Combining Balance Sheer
All Internal Service Funds
June 30, 1997
Insurance Totals
Assets Reserve Equipment 1997 1996
Current Assets:
Cash and investments
Accrued revenue
Inventories of materials and
supplies, at cost
Total Current Assets
Fixed Assets:
Equipment
Accumulated depreciation
Net Fixed Assets
Total Assets
Liabilities and Fund Equity
Current Liabilities:
Accounts payable and accrued liabilities
Accrued payroll
Due to other funds
Capital leases -- current
Workers' compensation -- current
General liability - -c u rre n t
Compensated absences — current
Total Current Liabilities
Noncurrent Liabilities:
Capital Leases
Workers' compensation
General liability
Compensated absences
Total Noncurrent Liabilities
Total Liabilities
Fund Equity:
Contributed Capital
Retained Earnings (Accumulated Deficit)
Total Fund Equity
Total Liabilities and Fund Equity
$ $ 1,168,598 $ 1,168,598 $ 979,063
8,370
159,158 159,158 146,348
1,327,756 1,327,756 1,133,781
9,482,502 9,482,502 8,004,775
(4,195,425) (4,195,425) (3,158,848)
5,287,077 5,287,077 4,845,927
$ - $ 6,614,833 $ 5,614,833 $ 5,979,708
$ 487,063
$ 191,918
$ 678,981
$ 840,963
23,483
23,483
118,362
686,288
686,288
1,270,165
536,852
536,852
277,341
1,900,000
1,900,000
2,150,000
700,000
700,000
650,000
1,100,000
1,100,000
750,000
4,896,834
728,770
5,625,604
6,056,831
680,248
680,248
543,174
3,872,223
3,872,223
3,598,677
1,714,151
1,714,151
1,613,056
6,342,767
6,342,767
6,484,648
11, 929,141
68Q 248
12, 609, 389
12, 239, 555
16, 825, 975
1,409,018
18, 234, 993
18, 296, 386
4,097,648
4,097,648
4,097,648
(16,825,975)
1,108,167
(15,717,808)
(16,414,326)
(16,825,975)
5,205,815
(11,620,160)
(12,316,678)
$
$ 6,614,833
$ 6,614,833
$ 5,979,708
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CITY OF NEWPORT BEACH
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
All Internal Service Funds
For the Year Ended June 30, 1997
Insurance Totals
Reserve Equipment 1997 1996
Operating Revenues:
Charges for services $ 4,587,900 $ 3,441,735 $ 8,029,635 $ 7,220,715
Other 181,600 6,014 187,614 11,223
Total Operating Revenues
4,769,500
3,447,749
8,217,249
7,231,938
Operating Expenses:
Salaries and wages
916,181
916,181
935,387
Depreciation
1,185,417
1,185,417
1,008,235
Professional services
75,213
75,213
55,282
Maintenance and supplies
396,279
396,279
150,525
Fleet parts and supplies
356,869
356,869
404,069
Workers' compensation
1,973,490
1,973,490
2,473,017
Claims and judgments
1,371,413
1,371,413
456,599
Disability
154,132
154,132
Compensated absences
1,793,631
1,793,631
1,337,344
Total Operating Expenses
5,292,666
2,929,959
8,222,625
6,820,458
Operating Income (Loss)
(523,166)
517,790
(5,376)
411,480
Nonoperating Revenues (Expenses):
Intergovernmental revenue
144
144
12,953.
Interest income
59,021
59,021
Gain on sale of fixed assets
103,495
103,495
164;854
Interest expense
(78,254)
(44,218)
(122,472)
(37,794)
Total Nonoperating Revenues
(78,254)
118,442
40,188
140,093
Income (Loss) Before
Operating Transfers
(601,420)
636,232
34,812
551,573
Operating transfers:
Operating transfers in
911,706
911,706
Operating transfers out
(250,000)
(250,000)
(250,000)
Total operating transfers -
911,706
(250,000)
661,706
(250,000)
Net Income (Loss)
310,286
386,232
696,518
301,573
Retained Earnings (Accumulated
Deficit), July 1
(17,136,261)
721,935
(16,414,326)
(16,715,899)
Retained Earnings (Accumulated
Deficit), June 30
$ (16,825,975)
$ 1,108,167 $
(15,717,808) $
(16,414,326)
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CITY OF NEWPORT BEACH
Combining Statement of Cash Flows - All Internal Service Funds
■
For the Year Ended June 30, 1997
■
Insurance
■
Reserve
Equipment
Cash flows from operating activities
■
Operating income (loss) $
(523,166)
$
517,790
Adjustments to reconcile operating income (loss)
■
to net cash provided by (used for) operating activities:
Depreciation
1,185,417
■
Intergovernmental revenue
144
Changes in operating assets and liabilities:
■
(Increase) decrease in accrued revenue
8,370
(Increase) decrease in deposits with other agencies
■
(Increase) decrease in inventories of materials
and supplies, at cost
(12,810)
■
Increase (decrease) in accounts payable
(122,049)
(39,933)
Increase (decrease) in accrued payroll
(77,889)
(16,990)
■
Increase (decrease) in due to other funds
(583,877)
Increase (decrease) in workers' compensation
23,546
■
Increase (decrease) in general liability
151,095
Increase (decrease) in compensated absences
208,119
■
Total Adjustments
(401,055)
1,124,198
■
Net cash provided by (used for) operating activities
(924,221)
1,641,988
Cash flows from noncapital financing activities:
■
Operating transfers from other funds
911,706
Operating transfers to other funds
(250,000)
■
Net cash provided by (used for)
■
noncapital financing activities
911,706
(250,000)
Cash flows from capital and related
■
financing activities:
Acquisition of capital assets
(744,764)
■
Principal payment
(536,852)
Proceeds from sale of capital assets
155,129
■
Interest paid
(78,254)
(44,218)
Net cash used for capital and
■
related financing activities
(78,254)
(1,170,705)
Cash flows from investing activities:
■
Interest on investments
59,021
■
Net cash provided by (used for) investing activities
59,021
■
Net increase (decrease) in cash
and cash equivalents
(90,769)
280,304
■
Cash and cash equivalents. July 1
90,769
888,294
Cash and cash equivalents, June 30 $
-
$
1,168,598
■
Noncash Activities:
■
Contributed capital $
-
$
-
Acquisition of equipment by capital leases $
-
$
933,436
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Totals
1997 1996
1,185,417
1,008,235
144
12,953
8,370
41,564
631,284
(12,810)
7,706
(161,982)
648,084
(94,879)
(583,877)
1,256,836
23,546
330,362
151,095
(1,975,000)
208,119
(71,994)
723,143
1,890,030
717,767
2,301,510
911,706
(250,000) (250,000)
661,706 (250,000)
(744,764)
(1,805,169)
(536,852)
(291,728)
155,129
245,846
(1,248,959)
J O,VLI
(1,888,765)
189,535 162,745
979,063 816,318
$ 1,168,598 $ 979,063
$ 933,436 $ 387,592
79
4
I
F _1
AGENCY FUNDS
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■
Agency Funds are used to account for assets held by the City in a trustee
capacity, or as an agent for other government entities, private organizations, or
individuals. City of Newport Beach Trust and Agency Funds are listed below: ■
The Deferred Compensation Fund is used to track the assets of the City's deferred
compensation plan for its employees.
The Special Assessment Fund is used to account for funds received from affected
property owners and payable to holders of 1911 Act, 1915 Act and other special ■
assessment bonds.
The Special Deposit Fund is used to account for special deposits held by the City in •
its fiduciary capacity.
The Business Improvement District Fund is used to account for monies collected
from local business districts for district property improvements and business ■
enhancement.
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91
Totals
1997 1996
$ 38,457,953 $ 29,193,103
1,886,590 756,141
$ 40,344,543 $ 29,949,244
$ 7,543,703
2,447,252
30,353,588
$ 101,690
3,347,130
1, 387, 057
25,113, 367
$ 40,344,543 $ 29,949,244
1.191
■
CITY OF NEWPORT BEACH
■
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
■
For the
Year Ended June 30,
1997
■
Balance
Balance
June 30, 1996
Additions
Deductions
June 30, 1997
■
Deterred Compensation:
■
Assets
Cash and investments
$
25,215,057
S
5,613,180
$
(474,649)
$
30,353,588
■
Liabilities
Due to other funds
$
101,690
$
(101,690)
.
Deferred compensation
25,113,367
S
5,613,180
(372,959)
$
30,353,588
•
Total Liabilities
$
25.215,057
S
5,613,180
$
(474,649)
$
30,353,588
■
Special Assessment:
Assets
.
Cash and investments
$
2,590,989
$
5,236,022
$
(2,1669,898)
$
5,657,113
Restricted assets - cash
■
and investments
756,141
1,178,088
(47,639)
1,886,590
■
Total Assets
S
3,347,130
$
6,414,110
S
(2,217,537)
S
7,543,703
Liabilities
■
Due to bondholders
S
3,347,130
$
6,414,110
S
(2,217,537)
$
7,543,703
■
Special Deposit:
■
Assets
Cash and investments
$
1,352,958
S
1,946,363
$
(878,269)
S
2,421,052
■
Liabilities
Due to others
$
1,352,958
S
1,946,363
S
(878,269)
S
2.421,052
_
■
Business Improvement District:
■
Assets
Cash and investments
S
34,099
$
221,215
S
(229,114)
S
26,200
■
Liabilities
.
Due to others
S
34,099
$
221,215
$
(229,114)
$
26,200
■
Totals - All Agency Funds:
Assets
■
Cash and investments
$
29,193,103
$
13,016,780
$
(3,751,930)
$
38,457,953
Restricted assets - cash
■
and investments
756,141
1,178,088
(47,639)
1,666,590
Total Assets
$
29,949,244
$
14,194,868
$
(3,799,569)
$
40,344,543
■
•
Liabilities
Due to other funds
S
101,690
$
(101,690)
.
Due to bondholders
3,347,130
$
6,414,110
(2,217,537)
$
7,543,703
Due to others
1,387,057
2,167,578
(1,107,383)
2,447,252
.
Deferred compensation
25,113,367
5,613,180
(372,959)
30,353,588
Total Liabilities
$
29,949,244
$
14,194,868
$
(3,799,569)
$
40,344,543
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CITY OF NEWPORT BEACH
General Long -Term Debt Account Group
Comparative Schedule of General Long -Term Debt
June 30, 1997
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
1997 1996
$ 579,851 $ 579,731
11,026,880 9,510,396
$ 11,606,731 $ 10,090,127
$ 6,940,000 $ 7,090,000
1,853,027 81,394
2,813,704 2,918,733
$ 11,606,731 $ 10,090,127
Statistical Section
W
IN
S
E
CITY OF NEWPORT BEACH
Miscellaneous Statistics
June 30, 1997
General Information:
Date of Incorportation .............
Form of Government ...............
.... I ..... I........ 1906
Council- Manager
... ............................... 70,030
.............. I ....... I......... 100,000
... 20,000 to 100,000 per day
... ............................... 35,987
..... ............................... 1.946
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
Persquare mile ........ ........................................................ . ................................................ ....... 4,998.6
Peracre ............................................................................... ............................... ...........................7.76
WaterFrontage: ..................................................................................................................... Miles
Ocean........................................................................................................... ............................... 7.21
Harbor....................................................................................................... ............................... 35.94
TotalWater Frontage ................................................................................ ............................... 43.15
Newport Harbor:
Boats.......................................................................................................... ............................... 9,000
Residential................................................................................................. ............................... 1,230
Commercial Slips and Side Ties ............................................................... ............................... 2,119
BayMoorings ............................................................................................ ............................... 1,221
Public Safety
Police
Numberof Stations ............................ 1................................ ...............................
Number of Personnel ....................... 209.............................. ...............................
:•
Fire & Marine
............................8
.........................119
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■
Fiscal
Year
Taxes
Licenses,
Fees and
Permits
Governmental Revenues by Source (1)
(Last Ten Fiscal fears)
Fines,
Inter- Charges Forfeitures
governmental for and
Revenue Services Penalties
Revenue from
Use of Money
and Piopeny
Other
Total
■
■
■
■
11,6,97,640..
3,776,328
:5,996,335
: ' 11,175,926
59,909,595
26,729,452
13,117,444
■
1987 -1988
S 34,076,119 S
2,294,447.
S " 8,157, ,(
, , , ,
, ,
, , 78
1988 -1989
37,245,279
2,5 -17 205,
- 6,858,019.. .- 4,83 - 1,564 - - -:.
2,964,864
..8, 91,781
3,649,089
66,447,801
■
1989 -1990
38,389,789
21653,730
-, 16,537,544 4,899,970
- 3,376,573
9,766,CQ6
2,441,088
78,064,697
■
1990 -1991
40,479,235 -
2,808,179
- 1.1,.29,004 3,466;023
3,114,983
9,999,416
3,555,699
74,452,539
3,336,672
- 5,857,919
18,523,773
1,551,294
72,825,573
34,571,273 �`
14,779,614 -
2,9521247-
5,916,194
■
1991 -1992
4"',466,232:
1,903,,44
101819,561.. 4;609,812-
3,053,246
•9,611,324
2,722,r37 .
73,185,456
88,324,639
1992 -1993
38,471,775.
2,0,6,805
. 7,621,643 4,713;2W
2,582,969 `
.. 9,4'69,060
1,031,526-'
65,886,978
■
1993-1994
' 39;8-9,139
2,247 233
8,993,289 _: .5 X77,369
2,706,194
8:660,599
1,841,189.
;69,335,012
■
1994. 1995 =�;`
3917191831
2,409,523
10,714, -0- 5,1--9,513
3,156,530
9,676,426
1,089,385
71,865,207
■
1995.1996'
' 411H53148,
4,851 „571
8,315543.:: 6,278,416
2,8 55,063
: I1,CC0,272
6,54,,913
92-,695,258
1996-199715”
44,52.3,9 }5
�4,C81,509
11,871,411 . 1,185,210
2,529,0115
10,497,715
10,208,241`
90,897 „042
■
(1) Includes General, SpecialReve;rtue, Debt Service and Capital Projects Funds.
■
Governmental Expenditures by Function
(1)
■
, (Last TenFiNcal ?Years)
Fiscal.
General:
'Public
. ".. Public ,: Community
Community
Capital
Debt
Year :
Godcrament
,Safety
Works ., ,Development
Services
. Outlay
Service
Total
■
1988 -1989
1989 -1990
1991 -1991
1991 -1992
1992 -1993
1993 -1994
1994 -1995
1995 -1996
1996 -1997
4,818,412
4,607,009
5,505,610
5,442,862
5,673,321
S 21,845,493 $
1,,994 226.,. S
2,499,468
S 5,234,304
"S :16,67;535
S
62 ]19,438
22,014,671
11,6,97,640..
3,776,328
:5,996,335
: ' 11,175,926
59,909,595
26,729,452
13,117,444
21873,185
'6,609,717
. 23,611,143
' 78,306,210
2(,911103
14,4561890
2,973;750
7,2$,4,300
18,768,787 ,
75,668,929
3,,987,412
12,372,598"
3,416,623'-
8,869,639
- 16,034,184
74,612,372
3,1,209,589
.'i 12,779,215
.3,636,092,
8,520,758
12,220,226:, b
1;155,407 (2)
73,881,144
32,33,,35,8...
15,018,898 --
.3,406,712
- 5,910,752
13 605 ,713;' -
1,175,175
76,054,587
33,389,922 -
;:141661,343
3,336,672
- 5,857,919
18,523,773
1,551,294
72,825,573
34,571,273 �`
14,779,614 -
2,9521247-
5,916,194
11,291,759
1,069,045
76,022,994
35,647,247
15,502,095
3,329,545 -
6,585,335
20,696,487
89,,609
88,324,639
(1) Includes General, Special Revenue, Capital Projects and Debt Service Funds.
(2) Historical data for Debt Service expenditures is unavailable prior to fiscal year 1992 -93.
Source: City Administrative Services Department
nei
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■ $100
■
$90
■
$80
■
■ $70
A
■ �
$60
F
■C $so
v
■ O $40
■ $30
■ $20
■ $10
■ $0
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Governmental Revenues and Expenditures
1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 1992 -93 1993 -94 1994.95 1995-96 1996 -97
Governmental Revenues by Source
(Fiscal Year 1996 -97)
inn, ■ Taxes
11%
120K
23%
8% 13%
• Licenses & Permits
• Intergovernmental
• Charges for Services
• Fines & Forfeitures
■Use of Money & Property
■Miscellaneous
Governmental Expenditures by Function
(Fiscal Year 1996 -97)
",0/
/ %0 4% 189/11
91
■ General Government
■Public Safety
■Public Works
■Community Development
■Culture and Recrcation
■ Capital Outlay
■ Debt Service
(1) Effective FY92/93- FY95/96, Orange County reduced Secured Property Tax Levy as a result of the State Budget Process
(2) Funds were withheld due to the Orange County Bankruptcy.
Source: County of Orange Auditor - Controllers Office
92
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Asssessed and Estimated Actual Value of Taxable Property
Secured Property Tax Levies and Collections
(Last Wen Fiscal
Years)
(Last Ten
Fiscal Years)
-
Total
Fiscal
Secured
Public
Delinquent.
Unsecured Assessed & Estimated
Year
Valuation
Utility
Valuation
Valuation
1987 -1988 $
7,772,854,712
$ 80,739,100
$
841,558,697 3
8,695,152,509
1988 -1989
8,463,563,058
575,220
(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)
1,010,317,328
11,594,170,910
1992 -1993
11,182,809,052
354,820
(1)
893,375,850
12,076,539,722
1993 -1994
11,179,271,032
354,820
(1)
865,424,090
12,045,049,942
1994 -1995
11,178,202,789
354,820
(1)
686,344,530
11,864,902,139
1995 -1996
11,078,301,482
354,820
(1)
725,943,222
11,804399,524,
1996-1997
11,154,286,162
353,820
(1)
754,8921821
11,909,533,803
(1) Effective FY
1988 -89, Public utility values
have decreased due
to .x[32890 and AB454 transferring
526,025
the public utility
values to a county -wide tax rate area.
1994 -1995
17,730,237
(1)
(1) Effective FY92/93- FY95/96, Orange County reduced Secured Property Tax Levy as a result of the State Budget Process
(2) Funds were withheld due to the Orange County Bankruptcy.
Source: County of Orange Auditor - Controllers Office
92
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Secured Property Tax Levies and Collections
(Last Ten
Fiscal Years)
-
Total
Total
Percent
Delinquent.
'% of Total Tax
Fiscal
Current
Current
of Levy
Tax
Total
Collections
Year
Levy
Collections
Collected
Collections
Collections
Total Levy
1987 -1988.
$ 15,942,564
$
15,311,519
96.04% $
493,507 $
15,805,026
99.14%
1988 -1989
17,308,591
16,678,689
96.30%
432,523
17,111,212
98.86%
1989 -1990
18,962,055
18,119,326
95.56%
392,912
18,512,238
97.63%
1990 -1991
21,031,117
19,863,098
94.45%
433,571
20,296,669
96.51%
1991 -1992
21,516,647
21,255,177
98.78%
504,000
21,759,177
101.13%
1992 -1993
18,859,889
-(1) _
18,508,590
98.14%
5536,760
19,396,649
102.85%
1993 -1994
17,870,028
(1)
17,131,159.
95.87/u
526,025
17,657,184
98.81%
1994 -1995
17,730,237
(1)
17,105,142 (2)
96.47%
409,355 (2)
17,514,497
98.78%
1995 -1996
17,843,233
(1)
17,432,840
97.70%
368,913
17,801,753
99.77%
1996 -1997
20,563,561
20,096,688
97.73%
897,670
20,994,358
102.09%
(1) Effective FY92/93- FY95/96, Orange County reduced Secured Property Tax Levy as a result of the State Budget Process
(2) Funds were withheld due to the Orange County Bankruptcy.
Source: County of Orange Auditor - Controllers Office
92
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$12,000
$10,500
n
a
0
A
0 $9,000
0
$7,500
C
ti $6,000
0
b
$4,500
v
6
$3,000
F
$1,500
$0
Total Assessed Valuation / Property Tax Collections
(Last Ten Fiscal Years)
Total Assessed Valuation
—m—Property Tax Collections
1987 -88 1988 -89 1989 -90 1990-91 1991 -92 1992.93 1993 -94 1994 -95 1995 -96 1996.97
$25,000
■
$20,000
O
A
w
O
$15,000
G
7
.0
H
k
$10,000
V
A
0
F
$5,000
Total Property Tax Collections / Delinquencies
(I ec, T— P:c. :,l V—., I
$25,000
$20,000
0
A
0
c
$15,000 i
0
L
v
n
c
0
J
$10,000
U
$5,000
$0
$900
$Boo
..,$700 4 n
$600 C
$500
C
$400
i
0
v
$300 �
v
$200 y
A
$100
$o w . � I . _� �....;,_._i�_ , . $0
1987 -88 1988 -89 1989 -90 1990 -91 1991 -92 1992 -93 1993 -94 1994 -95 1995 -96 1996-97
93
K
F
6
Construction Activity
(LastTen Fiscal Years)
Fiscal
Year
Building Permits
Issued
Percentage
Change
Estimated
Valuation
Percentage
Change
1987 -1988
9,337
-5.290/.
S 120,512,114
- 33.21%
1988 -1989
9,228
-1.17%
194,655,287
61.52%
1989 -1990
8,800
-4.64%
118,087,775
- 39.33%
1990 -1991
7,600
- 13.64%
110,500,000
-6.43%
1991 -1.992
7,268
-4.37%
77,413,996
- 29.94%
1992 -1993
7,251
-0.23%
72,170,274
- 6.77%
1993 - 1994
6,986
-3.66%
70,339,522
-2.54%
1994 -1995
7,672
9.82%
79,691,510
13.30%
1995 -1996
8,302
8.20%
145,760,839
82.91%
1996 -1997
9,085
9.43`%°
203,944,317
39.92%
Source: City Building and Planning Department.
1997 data for bank deposits will not be available until 12 -31 -97
Source: The Findley Reports on California Financial Insitutions
94
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Bank Deposits
(Last Ten Fiscal Years)
(thousands) .
Calendar Year Bank Deposits
1987
61011,254 ..
1988
61529,897
1989
6,631,511
1990
6,971,424
1991
4,331,692
1992
4,359,067
1993
4,582,022
1994
4,193,643
1995
4,219,849
1996
3,560,374
1997 data for bank deposits will not be available until 12 -31 -97
Source: The Findley Reports on California Financial Insitutions
94
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■ Estimated Value of Construction / Number of Building Permits
10,000
9,000
8,000
7,000
v
6,000 z
a
5,000 0
U
L
4,000
z
3,000
2,000
1,000
0
1987 -88 1988 -89
$250
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$200
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n
a
(Millions of Dollars)
A
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m
G
$150
$6.000
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$5,000
Y
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d
$100
a
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c
U
$50
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$0
10,000
9,000
8,000
7,000
v
6,000 z
a
5,000 0
U
L
4,000
z
3,000
2,000
1,000
0
1987 -88 1988 -89
1989 -90 1990 -91 1991.92 1992-93 1993 -94 1994 -95 1995 -96 1996 -97
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Bank Deposits
(Millions of Dollars)
$7,000
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$6.000
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$5,000
$4.(1110
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1)ih' 1948
1989 1994) 1991 1992 1993 199'. 1995 1996
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Property Tax Rates -- Direct and Overlapping Governments
(Per $100 of Assessed Value)
(Last Ten Fiscal Years)
Fiscal
School
County
County Flood
County-, City
Metro Water
Year
Districts
Improvement
Control
& School Levy
District
Total
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
L00000
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 -1993
0.00239
0.00013
0.00065
1.00000
0.01.171
1.01488
1993 -1994
0.00000
0.00011
0.00067
1.00000
0.00326
1.00404
1994 -1995
0.00000
0.00013
0.00037
1.00000
0.00881
1.00931
1995 -1996
0.00000
0.00012
0.00000
1.00000
0.00890
1.00902
1996 -1997
0.00000
0.00000
0.00000
1.00000
0.00857
1.00857
Source: County of Orange Auditor - Controllers Office
Computation of Legal Debt Margin
June 30, 1997
Total assessed value of Al real & personal property
Debt limit percentage
Total debt limit
Amount of debt applicable to debt limit
Legal debt margin
$11,909,533,803 (1)
150/6
$1,786,430,070
$6,940,000
$1,779,490,070
(1) The fiscal year 1997 debt limit is based on assessed value being equivalent to 100% of
market value.
Source: City Administrative Services Department
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■ CITY OF NEWPORT BEACH
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Principal Taxpayers
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June 30, 1997
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Prpperty Tax'
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(listed alphabetic -ally)
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1996-97
t
Assessed
Percent
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PrineipalTaxpaayer
TyPe of Business
Valuation
of Total
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Ba v ie y 'Crust
Financial
$
32,627,700
0:19° o
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Downey Sayings :& Loan.
Financial
$
42,056,337
0.19%
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HMH Proper i8 lnc. ,
Real Estate
$
91,411,825
0.20%
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Hughes Air r.4 Company .
Aerospace
$
46,716,550
0.21%
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Ininc'Cornpany .;
Real Estate
$
640,564,159
0.20%
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Ircine Apartrnent Coasmunities
Real L fate
$
1(x6,737,098 '
0.15%
0.
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Krill Center
Office Buildings
$
35,629,377
0.21%
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•"Pacific :klusual Life insurance Co.
Life insurance.
$
30,131,237
0.20 °l0
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Tark Newport Laid Ltd.
Real Estate
$
63,308,620
0.20 %,
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Rockwell International Corp.
Aerospace
$
467,372,034
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Total.
$
1,615,954,937
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Source: HdL, Coren and Cone Co.
97
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Schedule of Direct and Overlapping Bonded Debt
June 30, 1997
1996 -97 Assessed Valuation:
DIRECT BONDED DEBT:
City of Newport Beach 1915 Act Bonds
City of Newport Beach Special Improvement District No. 95.1
Total Direct Bonded Debt
OVERLAPPING BONDED DEBT:
Orange County Improvement Bonds
Metropolitan Water District
Irvine Ranch Water District Improvement District #206
Irvine Ranch Water District Improvement District #106
Irvine Ranch Water District Improvement District #161
Irvine Ranch Water District Improvement District #261
Irvine :Ranch Water District Improvement District #140
Irvine Ranch Water District Improvement District #240
Total Overlapping Bonded Debt
$12,174,915,378
% Applicable Debt 6/30/97
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT (1)
Ratios to Assessed Valuation:
$13,745
Direct Debt
0.16%
Total Gross Debt
0.25%
100.000 % $3,204,506
100.000 % 16,075,000
$19,279,506
6.873 %
$13,745
1.384 %
8,034,174, .
19.717 %
2,285,351,1
8.292 %
1,197,636 .
9.140%
44,694 "
18.490 %
158,648.1:
0.014%
3,855
0.014 %
5,973
511,744,076
$31,023,582
Note: (1) Reflects general obligation debt being repaid through voter - approved indebtedness. It
excludes revenue, mortgage revenue, tax allocation bonds, interim financing obligations,
non - bonded capital lease obligations and certificates of participation.
Source: HdL Coren & Cone, Orange County Assessor Combined 1996/97 Lien Date Tax Rolls
a-]
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Fiscal Gross Operating Available for
Debt Service Requirements
Year Revenues (l) Expenses (2) Debt Service
Principal Interest Total
Coverage
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1994 -1995 $ 14,817,854 $ 11,471,118 $ 3;346,736 $
$ 460,458 $ 460,458
7.27
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1995 -1996 16,145,307 13,220,028 2,925279
820,000 438,420, 1,258,420
2.32
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1996 -1997 18,221,967 14,651,987 3;5691980
845,000 415,711 1,260,711
2.83
(1) Total revenues includes interest and intergovernmental revenues.
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(2) Total operating' expense exclusive of depreciation.
(3) No revenue:b6nds were. issued prior to fiscal year. 1994 -95.
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