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